Document:

EXHIBIT 4.2

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                        NELNET STUDENT LOAN TRUST 2004-3

                                 TRUST AGREEMENT

                                 BY AND BETWEEN

                        NELNET STUDENT LOAN FUNDING, LLC,
                    AS INITIAL CERTIFICATEHOLDER AND SPONSOR,

                                       AND

                            WILMINGTON TRUST COMPANY
                               AS DELAWARE TRUSTEE

                            DATED AS OF JULY 1, 2004

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                                    Article I

                                   DEFINITIONS

Section 1.01.     Definitions.................................................1
Section 1.02.     Other References............................................4

                                   Article II

               ORGANIZATION OF THE TRUST; AUTHORITY TO EXECUTE AND
                     PERFORM VARIOUS DOCUMENTS; DECLARATION
                          OF TRUST BY DELAWARE TRUSTEE

Section 2.01.     Establishment of the Trust...................................5
Section 2.02.     Name.........................................................5
Section 2.03.     Office and Situs of Trust....................................5
Section 2.04.     Authority....................................................6
Section 2.05.     Powers and Authority.........................................6
Section 2.06.     Declaration of Trust by Delaware Trustee.....................8
Section 2.07.     The Indenture................................................8
Section 2.08.     Title to Trust Estate........................................8
Section 2.09.     Agreements Not to Institute Bankruptcy Proceedings;
                  Covenants....................................................8
Section 2.10.     Appointment of Delaware Trustee.............................11
Section 2.11.     Federal Income Tax Allocations..............................11
Section 2.12.     Limitations on Certificateholders...........................11
Section 2.13.     Administration..............................................11
Section 2.14.     Additional Contributions....................................12
Section 2.15.     Principal Place of Business.................................12
Section 2.16.     Liability of the Certificateholders and the Delaware
                  Trustee.....................................................12

                                   Article III

                  TRUST CERTIFICATES AND TRANSFER OF INTERESTS

Section 3.01.     Initial Beneficial Ownership................................12
Section 3.02.     The Certificates............................................12
Section 3.03.     Authentication of Certificates..............................13
Section 3.04.     Registration of Transfer and Exchange of Certificates.......13
Section 3.05.     Mutilated, Destroyed, Lost or Stolen Certificates...........15
Section 3.06.     Persons Deemed Owners.......................................16
Section 3.07.     Access to List of Certificateholders' Names and Addresses...16
Section 3.08.     Maintenance of Office or Agency.............................16
Section 3.09.     Terms of Certificates Binding...............................16

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                                   Article IV

                           DISTRIBUTIONS AND PAYMENTS

Section 4.01.     Distribution of Payments....................................16
Section 4.02.     Payments From Trust Estate Only.............................17
Section 4.03.     Method of Payment...........................................18
Section 4.04.     Trust Payment Date Statement................................18

                                    Article V

                           DUTIES OF DELAWARE TRUSTEE

Section 5.01.     Notice of Default...........................................18
Section 5.02.     Action Upon Instruction.....................................19
Section 5.03.     Indemnification.............................................20
Section 5.04.     No Duties Except as Specified in Transaction Documents......21
Section 5.05.     No Action Except Under Specified Documents or Instructions..21
Section 5.06.     Action by Certificateholders with Respect to Bankruptcy.....21
Section 5.07.     Discharge of Liens..........................................21

                                   Article VI

                                DELAWARE TRUSTEE

Section 6.01.     Acceptance of Trusts and Duties.............................21
Section 6.02.     Furnishing of Documents.....................................24
Section 6.03.     No Representations or Warranties as to Trust Estate.........24
Section 6.04.     No Segregation of Moneys; No Interest.......................24
Section 6.05.     Reliance; Advice of Counsel.................................24
Section 6.06.     Not Acting in Individual Capacity...........................25
Section 6.07.     Books and Records...........................................25
Section 6.08.     Tax Returns.................................................25

                                   Article VII

                   ASSUMPTION OF LIABILITY AND PAYMENT FOR DELAWARE TRUSTEE

Section 7.01.     Compensation and Expenses...................................26
Section 7.02.     Indemnification.............................................26
Section 7.03.     Certificateholders To Assume Liability......................27

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                                  Article VIII

                            TERMINATION OF INDENTURE

Section 8.01.     Termination in General......................................27
Section 8.02.     Termination at Option of Certificateholders.................27
Section 8.03.     Termination.................................................28

                                   Article IX

              SUCCESSOR DELAWARE TRUSTEES, CO-DELAWARE TRUSTEES AND
                           SEPARATE DELAWARE TRUSTEES

Section 9.01.     Resignation and Successors..................................28
Section 9.02.     Co-Delaware Trustees and Separate Delaware Trustees.........29
Section 9.03.     Changes in Identity of a Delaware Trustee...................29

                                    Article X

                                  MISCELLANEOUS

Section 10.01.    Amendment...................................................30
Section 10.02.    No Title to Trust Estate, Etc...............................31
Section 10.03.    Sale of the Trust Estate by Delaware Trustee is Binding.....31
Section 10.04.    Limitations on Rights of Others.............................31
Section 10.05.    Notices, Etc................................................31
Section 10.06.    Severability................................................32
Section 10.07.    Separate Counterparts.......................................32
Section 10.08.    Successors and Assigns......................................32
Section 10.09.    Governing Law...............................................32
Section 10.10.    No Liability of Certificateholders..........................32
Section 10.11.    Actions by the Certificateholders...........................32

EXHIBIT A......CERTIFICATEHOLDERS' CAPITAL CONTRIBUTIONS
EXHIBIT B......FORM OF STATUTORY TRUST PAYMENT DATE STATEMENT
EXHIBIT C......FORM OF CERTIFICATE
EXHIBIT D......FORM OF TRANSFEROR LETTER
EXHIBIT E......FORM OF INVESTMENT LETTER
EXHIBIT F......FORM OF RULE 144A LETTER

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                                 TRUST AGREEMENT

        THIS TRUST AGREEMENT, dated as of July 1, 2004 (as may be amended from
time to time), by and among NELNET STUDENT LOAN FUNDING, LLC, a Delaware limited
liability company, as the Initial Certificateholder and Sponsor, and WILMINGTON
TRUST COMPANY (when referred to herein in its individual capacity, the "Trust
Company," and when referred to herein solely in its capacity as trustee
hereunder, the "Delaware Trustee"), is being entered into in order to establish
a Delaware statutory trust to be known as Nelnet Student Loan Trust 2004-3.

                              W I T N E S S E T H:

        WHEREAS, the Sponsor and the Trust Company have mutually agreed as set
forth herein to create the Trust.

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

                                   ARTICLE I

                                   DEFINITIONS

        SECTION 1.01 DEFINITIONS. All capitalized terms used in this Trust
Agreement shall have the meanings set forth below and, if not defined herein,
shall have the respective meanings assigned to them in the Indenture:

        "ADMINISTRATION AGREEMENT" means that certain Administration Agreement,
dated as of July 1, 2004, among the Trust, the Administrator, the Delaware
Trustee and the Indenture Trustee.

        "ADMINISTRATION FEE" means the fee, if any, from time to time payable to
the Administrator pursuant to the Administration Agreement.

        "ADMINISTRATOR" means National Education Loan Network, Inc., a Nevada
Corporation, and its successors and assigns.

        "AUTHORIZED OFFICER" means, with respect to an entity, the Chairman of
the Board, the President, Chief Operating Officer, any Senior Vice President,
Secretary, Treasurer, any Vice President, any Assistant Vice President or any
Financial Services Officer thereof.

        "BANKRUPTCY ACTION" means (i) commencing any case, proceeding or other
action or filing a petition under any existing or future bankruptcy, insolvency
or similar law seeking (A) to adjudicate the Trust a bankrupt or insolvent, (B)
to have an order for relief entered with respect to the Trust, or (C)
reorganization, arrangement, adjustment, wind-up, liquidation, dissolution,
composition or other relief with respect to the Trust or its debts, (ii)
consenting to the institution of bankruptcy or insolvency proceedings against

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the Trust, (iii) seeking or consenting to the appointment of a receiver,
custodian, liquidator, assignee, trustee, sequestrator (or other similar
official) of the Trust or a substantial part of its property, (iv) except as
required by law, admitting its inability to pay its debts generally as they
become due, (v) failing generally to pay the debts of the Trust as such debts
become due within the meaning of the Federal Bankruptcy Code, as determined by a
relevant bankruptcy court, (vi) making a general assignment by the Trust for the
benefit of creditors, or (vii) authorizing, taking any action in furtherance of,
consenting to or acquiescing in any of the foregoing or any similar action or
other proceedings under any United States Federal or state bankruptcy or
insolvency or similar law on behalf of, or with respect to, the Trust, or in
connection with any obligations relating to the Certificates, the Notes, this
Trust Agreement or any of the other Transaction Documents.

        "BENEFICIAL OWNER" means the owners of Certificates as determined for
federal income tax purposes, taking into account the provisions of ss.
1.7704-1(h) of the Treasury Regulations.

        "CERTIFICATE" means a certificate issued by the Trust evidencing the
beneficial ownership interests in the Trust as set forth thereon.

        "CERTIFICATEHOLDER" means the Persons or Person in whose name a
Certificate is registered in the Register on the applicable date.

        "DELAWARE TRUSTEE" means Wilmington Trust Company, not in its individual
capacity but solely in its capacity as trustee of the Trust under this Trust
Agreement, and its successors in interest.

        "INDENTURE" means the Indenture of Trust, dated as of July 1, 2004, by
and among Nelnet Student Loan Trust 2004-3 and Zions First National Bank, as
indenture trustee and eligible lender trustee, as supplemented or amended from
time to time.

        "INDEPENDENT TRUSTEE" means a Person that (i) is independent and is not
a stockholder or other securityholder (whether direct, indirect or beneficial),
customer or supplier of the Trust or any of its affiliates; (ii) is not a
director, officer, employee, affiliate, member, manager or associate of the
Trust or any of its affiliates (other than in its capacity as the Delaware
Trustee for the Trust); (iii) is not related to any Person referred to in
clauses (i) or (ii) above; (iv) is not a trustee, conservator or receiver for
the Trust or any of its affiliates (other than in its capacity as Delaware
Trustee for the Trust); and (v) in the ordinary course of its business, acts as
a statutory trustee for other special purpose statutory trusts similar to the
Trust and is otherwise independent from the Trust and its affiliates (except as
provided above); provided that affiliates as used in this sentence does not
include the interests of the Delaware Trustee and its affiliates in each other.

        "INITIAL CERTIFICATE HOLDER" means Nelnet Student Loan Funding, LLC.

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

        "NOTES" shall have the meaning set forth in the Indenture.

        "NOTICES" has the meaning specified in Section 10.05 hereof.

        "OPINION OF COUNSEL" means a written opinion of counsel, who may be
counsel for a Certificateholder, which opinion is reasonably acceptable to the
Delaware Trustee.
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        "PAYMENTS" has the meaning specified in Section 4.01(b) hereof.

        "PERCENTAGE INTEREST" means with respect to any Certificate the
percentage interest set forth on the face of such Certificate.

        "PERSON" means any individual, corporation, partnership, joint venture,
association, joint stock company, statutory trust (including any beneficiary
thereof), unincorporated organization or government or any agency or political
subdivision thereof.

        "REGISTER" means a register kept by the Registrar in which, subject to
such reasonable regulations as it may prescribe, the Registrar shall provide for
the registration of the Certificates and the registration of transfers of the
Certificates.

        "REGISTERED OWNER" shall have the meaning set forth in the Indenture.

        "REGISTRAR" means the Delaware Trustee, or its designee, as Registrar
hereunder.

        "REQUIRED CERTIFICATEHOLDERS" means the approval of or direction by the
Certificateholders holding a majority of the Percentage Interests unless a
higher Percentage Interest is specifically required by the terms of this Trust
Agreement or applicable law in which case "Required Certificateholders" shall
mean such higher Percentage Interest.

        "RULE 144A LETTER" has the meaning set forth in Section 3.04(b) hereof.

        "SECURITIES ACT" means the Securities Act of 1933, as amended.

        "SPONSOR" means Nelnet Student Loan Funding, LLC, a Delaware limited
liability company.

        "STANDARD & POOR'S" means Standard & Poor's Rating Services, a division
of The McGraw-Hill Companies, Inc., and its successors and assigns.

        "TRANSACTION DOCUMENTS" has the meaning specified in Section 2.05(a)(i)
hereof.

        "TRUST" means the Nelnet Student Loan Trust 2004-3 established pursuant
to this Trust Agreement.

        "TRUST AGREEMENT" means this Trust Agreement, dated as of July 1, 2004,
between Nelnet Student Loan Funding, LLC, as Initial Certificateholder and
Sponsor, and Wilmington Trust Company, as Delaware Trustee.

        "TRUST COMPANY" means Wilmington Trust Company, in its individual
capacity.

        "TRUST ESTATE" means all of the assets, property, and security interests
related thereto contributed, sold, assigned or otherwise transferred to or
acquired by the Trust together with all other assets subject hereto,
constituting the Trust created hereby and to be administered hereunder,
including without limitation, the earnings thereon and products and proceeds
thereof.

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        "TRUST PAYMENT DATE STATEMENT" has the meaning set forth in Section
4.04(a) hereof.

        "TRUST STATUTE" means Chapter 38 of Title 12 of the Delaware Code, 12
Del. Code ss. 3801 et seq., as the same may be amended from time to time.

        "UCC FINANCING STATEMENT" shall have the meaning set forth in Section
2.05(c) hereof.

        SECTION 1.02. OTHER REFERENCES.

                (a) As used in this Trust Agreement and in any certificate or
        other document made or delivered pursuant hereto or thereto, accounting
        terms not defined in this Trust Agreement or in any such certificate or
        other document, and accounting terms partly defined in this Trust
        Agreement or in any such certificate or other document, to the extent
        not defined, shall have the respective meanings given to them under
        generally accepted accounting principles. To the extent that the
        definitions of accounting terms in this Trust Agreement or in any such
        certificate or other document are inconsistent with the meanings of such
        terms under generally accepted accounting principles, the definitions
        contained in this Trust Agreement or in any such certificate or other
        document shall control.

                (b) The definitions contained in this Trust Agreement are
        applicable to the singular as well as the plural, the past, the present,
        the future, the active and the passive forms of such terms and to the
        masculine as well as the feminine and neuter genders of such terms.

                (c) Any agreement, instrument or statute defined or referred to
        herein or in any instrument or certificate delivered in connection
        herewith means such agreement, instrument or statute as from time to
        time amended, modified or supplemented and includes (in the case of
        agreements or instruments) references to all attachments thereto and
        instruments incorporated therein; references to a Person are also to its
        permitted successors and assigns.

                (d) The terms "hereof," "herein," "hereby," "hereof" or
        "hereunder," unless otherwise modified by more specific reference, shall
        refer to this Trust Agreement in its entirety as amended from time to
        time. Unless otherwise indicated in context, the terms "Article,"
        "Section," "Schedule," or "Exhibit" shall refer to an Article or Section
        of, or Schedule or Exhibit to, this Trust Agreement. The headings of
        sections and paragraphs and the Table of Contents contained in this
        Trust Agreement are provided for convenience only. They form no part of
        this Trust Agreement and shall not affect its construction or
        interpretation.

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                                   ARTICLE II

                           ORGANIZATION OF THE TRUST;
               AUTHORITY TO EXECUTE AND PERFORM VARIOUS DOCUMENTS;
                    DECLARATION OF TRUST BY DELAWARE TRUSTEE

        SECTION 2.01. ESTABLISHMENT OF THE TRUST. The Sponsor and the Delaware
Trustee hereby establish a trust (the "Trust") pursuant to the Trust Statute, to
be known as Nelnet Student Loan Trust 2004-3. Simultaneously with the execution
hereof, the Sponsor shall make a contribution to the Trust as the Sponsor's
initial contribution, as described more fully in Exhibit A hereto, and
thereafter may transfer and assign the property described in the granting
clauses of the Indenture to the Trust under the terms of the Student Loan
Purchase Agreements and other assignment agreements by and between the Sponsor,
as seller or assignor, and the Trust, as purchaser or assignee, and may assume
certain obligations under and in accordance with the Transaction Documents. Upon
the making of such contribution, the Delaware Trustee shall record the amount
thereof on the books of the Trust and the investment of the Sponsor therein. It
is the intention of the parties hereto that the Trust shall constitute a
statutory trust under the Trust Statute, that this Trust Agreement shall
constitute the governing instrument of such Trust and that the
Certificateholders shall hold all of the beneficial interests in the Trust. The
rights of the Certificateholders shall be determined herein and the relationship
between the parties hereto created by this Trust Agreement shall not constitute
indebtedness for any purpose. Subject to Section 2.08 hereof, it is the
intention of the parties hereto that, solely for purposes of federal income
taxes, state and local income and franchise taxes, and any other taxes imposed
on, measured by or based upon gross or net income, (i) if there is only one
Certificateholder, the Trust shall be treated as a disregarded entity separate
from its owner pursuant to ss. 301.7701-2(c)(2) of the Treasury Regulations and
(ii) if there is more than one Certificateholder, the Trust shall be treated as
a partnership, and that the provisions of this Trust Agreement shall be
construed in accordance with such intent. The parties hereto agree to take no
action inconsistent with such treatment, unless required otherwise by applicable
law. The Delaware Trustee is hereby authorized to file the certificate required
under Section 3810 et seq. of the Trust Statute in connection with the formation
of the Trust under the Trust Statute.

  SECTION 2.02. NAME. The name of the Trust shall be Nelnet Student Loan Trust
2004-3, in which name the Delaware Trustee solely in such capacity on behalf of
the Trust may, subject to the terms hereof and the other Transaction Documents,
conduct business, make and execute loans, contracts, security instruments and
other instruments, acquire, pledge, convey and transfer property and sue or be
sued.

    SECTION 2.03. OFFICE AND SITUS OF TRUST. The Trust shall be located and
administered in the State of Delaware. The Trust shall not have any employees in
any state other than Delaware; provided, however, that nothing herein shall
restrict or prohibit the Trust Company (in its individual capacity but not as
Delaware Trustee) from having employees within or without the State of Delaware.
The only office of the Trust shall be the corporate trust office of the Delaware
Trustee in Delaware.

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        SECTION 2.04. AUTHORITY. Effective as of the date hereof, the Delaware
Trustee shall have all of the rights, powers and duties set forth herein, and to
the extent not inconsistent herewith, in the Trust Statute with respect to
accomplishing the purposes of the Trust.

        SECTION 2.05. POWERS AND AUTHORITY.

                (a) Subject to Section 2.09 hereof, the Trust has been created
        for the purpose of purchasing and owning student loans, issuing Notes
        from time to time, pledging its interest in student loans and other
        collateral under the terms of the Indenture to secure the Notes and
        performing activities that are necessary, suitable or convenient to
        accomplish those purposes, including without limitation, the following:

                        (i) execute and deliver the Basic Documents (as defined
                in the Indenture), one or more student loan purchase agreements,
                note purchase agreements, servicing agreements, sub-servicing
                agreements, eligible lender trust agreements, guaranty
                agreements, custodial agreements, investment agreements,
                Derivative Products (as defined in the Indenture), and such
                other documents relating to the transactions contemplated by the
                Indenture and hereby, as the Required Certificateholders or the
                Administrator may from time to time direct in writing
                (collectively, the "Transaction Documents"), in each case in the
                respective forms in which the same may be delivered by or on
                behalf of the Certificateholders or the Administrator to the
                Delaware Trustee from time to time for execution and delivery,
                and accept any document that is not signed by the Delaware
                Trustee, the delivery of which is provided for under any of the
                preceding agreements;

                        (ii) execute and deliver all other documents,
                certificates, instruments and agreements that are provided to it
                and are contemplated to be executed and delivered by the
                Delaware Trustee or the Trust, as applicable, by the documents
                referred to in clause (i) above;

                        (iii) to originate and acquire Eligible Loans;

                        (iv) to deposit and apply the proceeds of the sale of
                the Notes;

                        (v) to assign, grant, transfer, pledge, mortgage and
                convey all or any portion of the Trust Estate pursuant to the
                Indenture and to hold, manage and distribute to the
                Certificateholders pursuant to the terms of this Trust Agreement
                any portion of the Trust Estate released from the lien of, and
                remitted to the Trust pursuant to, the Indenture;

                        (vi) execute and deliver assignments and assumptions
                with respect to certain rights and responsibilities under the
                Transaction Documents;

                        (vii) upon the direction of the Required
                Certificateholders or the Administrator take whatever action
                shall be required to be taken by the Delaware Trustee by the
                terms of, and to exercise its rights and perform its duties
                under, each of the documents referred to in clauses (i) through
                (vi) above as set forth therein;

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                        (viii) upon a Certificateholder making or causing to be
                made available to the Delaware Trustee the contributions
                referred to in Section 2.01 hereof, record the amount thereof on
                the books of the Trust as the investment of the
                Certificateholder therein;

                        (ix) upon a Certificateholder making available to the
                Delaware Trustee the amounts necessary to pay the expenses
                arising with respect to the Transaction Documents to the extent
                not paid by a Certificateholder or pursuant to the Transaction
                Documents, to pay such expenses as directed by the
                Certificateholder or the Administrator and to note such payment
                on the books of the Trust;

                        (x) pay, remit and distribute monies received by the
                Trust pursuant to Section 4.01 hereof;

                        (xi) subject to the terms of this Trust Agreement and
                the Transaction Documents, to engage in such other activities as
                may be required in connection with the conservation of the Trust
                Estate, payment of the Notes and making distributions to the
                Certificateholders;

                        (xii) issue, execute and deliver the Certificates in the
                form attached hereto;

                        (xiii) take such other actions as are specified herein
                or are incidental to the foregoing; and

                        (xiv) subject to the terms of this Trust Agreement, take
                such other action in connection with the foregoing as the
                Required Certificateholders or the Administrator may from time
                to time direct.

                (b) Notwithstanding anything herein to the contrary, the Trust
        is neither authorized nor empowered to engage in any activity other than
        exercising its rights, powers and authority and performing its
        obligations in accordance with the express provisions of Section 2.05(a)
        hereof. The Delaware Trustee may establish such trust accounts on its
        records (or through the Trust Company) in its discretion as it may deem
        desirable or appropriate for the deposit and disbursement of any monies
        delivered to it hereunder.

                (c) Notwithstanding anything in this Trust Agreement or in any
        other Transaction Document to the contrary, the Trust is hereby
        authorized to execute, deliver and perform the Indenture, each Student
        Loan Purchase Agreement and such financing statements (UCC-1 and UCC-3)
        evidencing the security interests granted by the Trust (the "UCC
        Financing Statement") pursuant to any of the foregoing agreements and/or
        the assignment of the Trust's interests in collateral pledged or
        assigned to the Trust pursuant to any of the foregoing documents, and
        the Delaware Trustee is hereby authorized to execute and deliver such

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        documents on behalf of the Trust without any approval, consent or other
        action by any party hereto, and such execution, delivery and performance
        do not and shall be deemed not to conflict with or violate any provision
        of this Trust Agreement or any duty or restriction hereunder of any
        party hereto.

        SECTION 2.06. DECLARATION OF TRUST BY DELAWARE TRUSTEE. The Delaware
Trustee hereby declares that it will hold the Trust Estate upon the trusts set
forth herein for the use and benefit of the Certificateholders and as Delaware
Trustee for the Certificateholders hereunder.

        SECTION 2.07. THE INDENTURE. The Certificateholders and the Delaware
Trustee hereby acknowledge that, when executed and delivered, the Indenture
shall create a lien on the Trust Estate, subject to the limitations set forth in
such agreements.

        SECTION 2.08. TITLE TO TRUST ESTATE.

                (a) Subject to the lien of the Indenture, title to all of the
        Trust Estate at all times shall be vested in the Trust as a separate
        legal entity except (i) where applicable law in any jurisdiction
        requires title to any part of the Trust Estate to be vested in a trustee
        or trustees, in which case title to that part of the Trust Estate shall
        be vested in the Delaware Trustee, a co-trustee and/or a separate
        trustee, as the case may be, and (ii) except that record title to
        Eligible Loans that are part of the Trust Estate shall be held by an
        eligible lender trustee pursuant to the terms of an Eligible Lender
        Agreement or the Indenture and the Trust Estate shall have a beneficial
        interest therein.

                (b) The Certificateholders shall not have legal title to any
        part of the Trust Estate. No transfer by operation of law or otherwise
        of any interest of a Certificateholder shall operate to terminate this
        Trust Agreement or the trust hereunder or entitle any transferee to an
        accounting or to the transfer to it of any part of the Trust Estate.

        SECTION 2.09. AGREEMENTS NOT TO INSTITUTE BANKRUPTCY PROCEEDINGS;
COVENANTS.

                (a) Notwithstanding any other provision to the contrary of this
        Trust Agreement or any other agreement, document or instrument executed
        by the Trust and notwithstanding any prior termination of this Trust
        Agreement, the Certificateholders shall not take or authorize any
        Bankruptcy Action.

                (b) So long as the Indenture is in effect, and except as
        otherwise provided in the Indenture and the Transaction Documents:

                        (i) The Trust shall not engage in any business or
                activity other than in connection with or relating to the
                purchase or acquisition and ownership of the Trust Estate, the
                grant of such Trust Estate to the Trustee and the activities
                specified in Section 2.05 hereof.

                        (ii) The Trust shall not consolidate or merge with or
                into any other entity or convey or transfer its properties and
                assets substantially as an entirety to any entity, or pledge its
                assets to any other entity except as provided in the Transaction
                Documents.

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                        (iii) The Trust shall not dissolve or liquidate, in
                whole or in part.

                        (iv) The Trust shall not be, become or hold itself out
                as being liable for the debts of any other Person, or hold out
                its credit as being available to satisfy the obligation of any
                other Person, and the Trust and the Sponsor (or any other
                Certificateholder) will not act as agents for each other.

                        (v) The Trust shall not form, or cause to be formed, any
                subsidiaries.

                        (vi) The Trust shall act solely in its Trust name and
                through its duly Authorized Officers or agents in the conduct of
                its business, shall prepare all Trust correspondence in the
                Trust name, shall hold itself out as a separate entity from any
                other Person, shall conduct its business so as not to mislead
                others as to the identity of the entity with which they are
                concerned and shall correct any known misunderstanding regarding
                its separate identity.

                        (vii) The Trust shall maintain statutory trust records,
                accounts and books of account and shall not commingle its
                statutory trust records, accounts and books of account with the
                organizational or other records, accounts and books of account
                of any other corporation or entity and such records, accounts
                and books of account shall reflect the separate existence of the
                Trust. The books of the Trust may be kept (subject to any
                provision contained in any applicable statutes) inside or
                outside the State of Delaware at such place or places as may be
                designated from time to time by the Trust.

                        (viii) The Trust shall take such actions as may be
                necessary to authorize all of its actions as may be required by
                law.

                        (ix) This Section shall not be amended, altered, changed
                or repealed, except as may be permitted pursuant to the
                Transaction Documents.

                        (x) The Trust shall not amend this Trust Agreement,
                except as may be permitted pursuant to the Transaction
                Documents.

                        (xi) The Trust shall (1) conduct its business in an
                office separate from that of the Certificateholders, (2)
                maintain stationery, invoices and checks separate from that of
                any other Person, (3) pay all of its own expenses and
                liabilities from its own funds, (4) strictly observe all
                statutory formalities, (5) pay the salaries of its own employees
                and maintain a sufficient number of employees in light of its
                contemplated business operations, (6) maintain an arm's length
                relationship with its affiliates and (7) maintain separate
                financial statements from any other Person. The Trust shall not
                (A) pledge (except pursuant to the Transaction Documents), lend
                or advance any moneys to, or make an investment in or for the
                benefit of, any Person, (B) make any capital expenditures, (C)
                subject to Section 5.06 hereof, take any Bankruptcy Action, or
                (D) guarantee (directly or indirectly), endorse or otherwise
                become contingently liable (directly or indirectly) for, or pay
                from its funds, the obligations or indebtedness of, or (except
                pursuant to the Transaction Documents) own or purchase any
                stock, obligations or securities of or any other interest in, or
                make any capital contribution to, any other Person.

                                       9
<PAGE>

                        (xii) The Trust shall allocate fairly and reasonably
                with any other Person expenses that are shared with such Person
                including, without limitation, any overhead, rent, or other
                compensation paid for shared or leased office space.

                        (xiii) The Trust (A) has maintained and shall maintain
                its valid existence, rights and franchises in good standing as a
                statutory trust under the laws of the State of Delaware 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
                Trust Agreement; (B) has observed and shall observe all
                procedures required by this Trust Agreement and the laws of the
                State of Delaware; and (C) has otherwise complied and shall
                otherwise comply with the provisions of this Trust Agreement and
                the Trust Statute.

                        (xiv) Financial and operational services, including,
                without limitation, maintenance of the books and records of the
                Trust and preparation of the financial statements shall be
                performed on behalf of the Trust by independent contractors or
                employees of the Administrator or its affiliates. The entity
                performing services or incurring expenses in connection with
                such services for the Trust shall receive compensation for such
                services rendered or expenses incurred in an amount equal to the
                fair value of such services and expenses. To the extent that the
                Trust leases premises from a Certificateholder or affiliates of
                a Certificateholder, the Trust shall pay appropriate
                compensation or rental. The Trust shall be directly responsible
                for the costs of its own outside legal, auditing and other
                similar services and shall provide for its own operating
                expenses and liabilities from its own funds. The amounts
                deposited into the Trust and the cash flow expected to be
                received by the Trust under the Indenture is expected to be
                sufficient to meet the fees and costs of the Delaware Trustee
                and the Administrator for the Trust and the reasonably
                anticipated expenses and liabilities of the Trust.

                        (xv) The annual financial statements of the Trust shall
                disclose the effects of these transactions in accordance with
                generally accepted accounting principles. The consolidated
                financial statements which consolidate the assets and earnings
                of any Certificateholder with those of the Trust shall not state
                that the assets of the Trust shall be available to creditors of
                a Certificateholder. The financial statements (if any) of the
                Trust shall not state that the assets of the Trust are or will
                be available to pay creditors of any Certificateholder or any
                other affiliate (other than the obligations of the
                Certificateholders to indemnify the Delaware Trustee under this
                Trust Agreement).

                        (xvi) The Trust will not guarantee any indebtedness of
                or make loans to a Certificateholder.

                        (xvii) Except for the Delaware Trustee's standard
                practice regarding maintenance of funds and assets, the funds
                and other assets of the Trust will not be commingled with those
                of any other Person and shall be maintained as identifiable fund
                and assets held in the name of the Trust.

                                       10
<PAGE>

                        (xviii) The Trust shall not enter into any contract or
                agreement with any its Certificateholders or their affiliates
                except on terms that are intrinsically fair, commercially
                reasonable, and substantially similar to those that would be
                available on an arm's length basis with third parties, and
                transact all business with its Certificateholders and or their
                affiliates pursuant to written, enforceable agreements with
                pricing and material terms established at the inception that
                will not be amendable except with written consent of each of the
                parties to the agreement).

                        (xix) The Trust shall maintain adequate capital for the
                normal obligations reasonably foreseeable for the size and
                character of the activities of the Trust and in light of its
                proposed operations and liabilities (provided that this clause
                shall not be deemed a commitment by any Certificateholder to
                deposit additional amounts into the Trust).

                        (xx) The Trust shall not enter into any agreements,
                written or otherwise, pursuant to which the Certificateholder
                agrees to extend credit or make payment or contributions to or
                for or assume, guaranty or otherwise be obligated for the
                payment or performance of the Trust; provided, however, that any
                Certificateholder may make any deposit to the Trust that such
                Certificateholder determines to be in the Certificateholder's
                best interest).

        SECTION 2.10. APPOINTMENT OF DELAWARE TRUSTEE. The Certificateholders
hereby appoint the Delaware Trustee as trustee of the Trust effective as of the
date hereof, to have all of the rights, powers, authority, authorization and
duties set forth herein and in the Trust Statute.

        SECTION 2.11. FEDERAL INCOME TAX ALLOCATIONS. Net income of the Trust
for any period, as determined for federal income tax purposes (and each item of
income, gain, loss and deduction entering into the computation thereof), shall
be allocated to the Certificateholders on a pro rata basis in accordance with
their respective Percentage Interests.

        SECTION 2.12. LIMITATIONS ON CERTIFICATEHOLDERS. Each Certificateholder
by accepting an interest in the Trust agrees that it will not enter into any
agreements, written or otherwise, between the Certificateholder and the Trust or
any other party (other than the obligations of the Certificateholder under
Sections 5.03, 6.08 and Article VII hereof) pursuant to which the
Certificateholder agrees to extend credit or make payment or contributions to or
for or assume, guaranty or otherwise be obligated for the payment or performance
of the Trust. This provision shall not prohibit any Certificateholder from
making any capital contributions to the Trust that such Certificateholder
determines to be in the Certificateholder's best interest.

        SECTION 2.13. ADMINISTRATION. Unless and until otherwise notified in
writing by the Required Certificateholders, the Delaware Trustee is hereby
authorized and directed to take and receive instructions from the Administrator
pursuant to the Administration Agreement with respect to matters relating to the

                                       11
<PAGE>

Trust to the same extent and with the same effect and protection as if any such
instructions were received from the Required Certificateholders subject to the
provisions hereof. The Administrator shall be entitled to the Administration Fee
for services provided pursuant to the provisions hereof, which compensation is
hereby acknowledged as reasonable compensation by the Administrator and the
Certificateholders. The Administration Fee shall be payable monthly as provided
herein and in the Indenture.

        SECTION 2.14. ADDITIONAL CONTRIBUTIONS. Any Certificateholder may make
an additional capital contribution (which capital contribution may be made with
funds advanced to the Certificateholder from the Administrator) to the Trust to
enable the Trust to carry out any instructions of such Certificateholder that
are permitted by the Transaction Documents, including an optional capital
contribution to enable the Trust to effect an optional purchase of Notes. If
such Certificateholder makes such a capital contribution, the Delaware Trustee
shall establish a separate trust account designated for the deposit of such
capital contributions. If a Certificateholder makes a capital contribution to
enable the Trust to take any action, any proceeds that result from such action
in an amount up to the amount of the capital contribution shall, if so directed
by the Certificateholder, be credited to such separate account and shall be
distributed to the Certificateholder that made such capital contribution.

        SECTION 2.15. PRINCIPAL PLACE OF BUSINESS. The Trust shall maintain its
principal place of business and chief executive office in the State of Delaware.

        SECTION 2.16. LIABILITY OF THE CERTIFICATEHOLDERS AND THE DELAWARE
TRUSTEE. To the fullest extent permitted by law, no Certificateholder shall have
any personal liability for any liability or obligation of the Trust for any
losses, claims, damages, liabilities and expenses of the Trust. The Delaware
Trustee shall not have any liability or obligation with respect to the
Certificateholders except as otherwise provided herein.

                                  ARTICLE III

                  TRUST CERTIFICATES AND TRANSFER OF INTERESTS

        SECTION 3.01. INITIAL BENEFICIAL OWNERSHIP. Upon the formation of the
Trust by the contribution by the Sponsor pursuant to Section 2.01 hereof and
until the issuance of Certificates, the Sponsor shall be the sole beneficial
owner of the Trust.

        SECTION 3.02. THE CERTIFICATES.

                (a) The Certificates are issuable in fully registered form in
        minimum Percentage Interests of 10%. Each Certificate shall be
        substantially in the form set forth in Exhibit C hereto. All
        Certificates may have set forth thereon such information, legends, and
        text as may be necessary or appropriate to conform to any applicable
        rules and regulations of any governmental authority or any usage or
        requirement of law with respect thereto. The Certificates shall be
        executed on behalf of the Trust by manual or facsimile signature of an

                                       12
<PAGE>

        Authorized Officer of the Delaware Trustee. Certificates bearing the
        manual or facsimile signatures of individuals who were, at the time when
        such signatures shall have been affixed, authorized to sign on behalf of
        the Delaware Trustee, shall be duly authorized, validly issued and
        entitled to the benefits of this Trust Agreement, notwithstanding that
        such individuals or any of them shall have ceased to be so authorized
        prior to the authentication and delivery of such Certificates or did not
        hold such offices at the date of authentication and delivery of such
        Certificates.

                (b) A transferee of a Certificate shall become a
        Certificateholder and shall be entitled to the rights and subject to the
        obligations of a Certificateholder hereunder upon such transferee's
        acceptance of a Certificate duly registered in such transferee's name
        pursuant to Section 3.04 hereof.

        SECTION 3.03. AUTHENTICATION OF CERTIFICATES. No Certificate shall
entitle its Certificateholder to any benefit under this Trust Agreement or be
valid for any purpose unless there shall appear on such Certificate a
certificate of authentication substantially in the form set forth in Exhibit C
hereto, executed by the Trust by manual signature of the Delaware Trustee; such
authentication shall constitute conclusive evidence that such Certificate has
been duly authenticated and delivered hereunder. All Certificates shall be dated
the date of their authentication.

        SECTION 3.04. REGISTRATION OF TRANSFER AND EXCHANGE OF CERTIFICATES.

                (a) The Delaware Trustee shall keep or cause to be kept, at the
        office or agency maintained pursuant to Section 3.08 hereof, a Register
        in which, subject to such reasonable regulations as it may prescribe,
        the Registrar shall provide for the registration of Certificates and of
        transfers and exchanges of Certificates as herein provided.

                (b) The Certificates have not been and will not be registered
        under the Securities Act and will not be listed on any exchange. No
        transfer of a Certificate shall be made unless such transfer is made
        pursuant to an effective registration statement under the Securities Act
        and any applicable state securities laws or is exempt from the
        registration requirements under the Securities Act and such state
        securities laws. In the event that a transfer is to be made in reliance
        upon an exemption from the Securities Act and state securities laws, in
        order to assure compliance with the Securities Act and such laws, the
        Certificateholder desiring to effect such transfer and such
        Certificateholder's prospective transferee shall each certify to the
        Trust, the Delaware Trustee, the Administrator and the transferring
        Certificateholder in writing the facts surrounding the transfer in
        substantially the forms set forth in Exhibit D (the Transferor Letter)
        and Exhibit E (the Investment Letter) or Exhibit F (the "Rule 144A
        Letter") hereto, as applicable. Except in the case of a transfer as to
        which the proposed transferee has provided a Rule 144A Letter with
        respect to a Rule 144A transaction, there shall also be delivered to the
        Trust an Opinion of Counsel to the effect that such transfer may be made
        pursuant to an exemption from the Securities Act, which Opinion of
        Counsel shall not be an expense of the Trust, the Delaware Trustee
        (unless it is the transferee from whom such opinion is to be obtained)
        or of the Administrator. Each Certificateholder of a Certificate
        desiring to effect such a transfer shall, and does hereby agree to,
        indemnify the Trust, the Delaware Trustee and the Administrator against
        any liability that may result if the transfer is not so exempt or is not
        made in accordance with federal and state securities laws.

                                       13
<PAGE>

                (c) No transfer, sale, pledge or other disposition of the
        Certificate shall be made unless prior to such transfer, sale, pledge or
        other disposition, the Trust shall have received either (i) a
        representation letter from the transferee of such Certificate,
        acceptable to and in form and substance satisfactory to the Trust, to
        the effect that such a transferee is not an employee benefit plan
        subject to Section 406 of ERISA or Section 4975 of the Code, or a person
        acting on behalf of any such plan or (ii) in the case of any Certificate
        presented for registration in the name of an employee benefit plan
        subject to ERISA or Section 4975 of the Code (or comparable provisions
        of any subsequent enactments), or a trustee of any such plan or any
        other person acting on behalf of any such plan, an Opinion of Counsel
        satisfactory to the Trust, the Delaware Trustee and the Administrator to
        the effect that the purchase or holding of such Certificate will not
        result in the Trust or the Trust Estate being deemed to be "plan assets"
        and subject to the prohibited transaction provisions of ERISA and the
        Code and will not subject the Trust, Delaware Trustee, the Administrator
        or the transferring Certificateholder to any obligation in addition to
        those undertaken in this Trust Agreement. Notwithstanding anything else
        to the contrary herein, in the event any purported transfer of any
        Certificate is made without delivery of the representation letter
        referred to above, such representation shall be deemed to have been made
        by the transferee by its acceptance of such Certificate. In addition,
        any purported transfer of a Certificate to or on behalf of an employee
        benefit plan subject to ERISA or to the Code without the delivery to the
        Trust, the Delaware Trustee, and the Administrator of an Opinion of
        Counsel as described above shall be void and of no effect. Any
        certificate or Opinion of Counsel furnished pursuant to this Section may
        be relied on conclusively by the Trust, Delaware Trustee, the
        Administrator and the transferring Certificateholder in determining
        whether the provisions hereof have been complied with.

                (d) No transfer shall be effective if immediately after such
        transfer there would be more than one hundred Beneficial Owners of
        Certificates. Any purported transfer in violation of the provisions of
        this subsection (d) shall be VOID AB INITIO and the Delaware Trustee
        shall have no liability in connection with a transfer in violation of
        the provisions of this subsection (d).

                (e) The foregoing provisions shall not prevent the assignment by
        a Certificateholder of all or any part of its right to receive
        distributions in respect of its interest in its Certificate, but such
        assignment shall effect no change in ownership of the Trust.

                (f) The preparation and delivery of the certificate and opinions
        referred to in this Section shall not be an expense of the Trust, the
        Delaware Trustee or the Administrator.

                (g) Upon surrender for registration of transfer of any
        Certificate at the office or agency maintained pursuant to Section 3.08
        hereof, the Delaware Trustee shall execute, authenticate and deliver, in
        the name of the designated transferee or transferees, one or more new
        Certificates in authorized denominations stating the aggregate amount
        and Percentage Interest so transferred dated the date of authentication
        by the Delaware Trustee. At the option of a Certificateholder,
        Certificates may be exchanged for other Certificates of authorized

                                       14
<PAGE>

        Percentage Interests and denominations of a like aggregate amount upon
        surrender of the Certificates to be exchanged at the office or agency
        maintained pursuant to Section 3.08 hereof.

                (h) Every Certificate presented or surrendered for registration
        of transfer or exchange shall be accompanied by a written instrument of
        transfer in form satisfactory to the Trust and duly executed by the
        Certificateholder or such Certificateholder's attorney duly authorized
        in writing. Each Certificate surrendered for registration of transfer or
        exchange shall be cancelled and subsequently disposed of by the Trust in
        accordance with its customary practice.

                (i) No service charge shall be made for any registration of
        transfer or exchange of Certificates, but the Trust or the Delaware
        Trustee may require payment of a sum sufficient to cover any tax or
        governmental charge that may be imposed in connection with any transfer
        or exchange of Certificates.

                (j) Notwithstanding any other provision herein or elsewhere, the
        Trust, the Delaware Trustee and the Administrator (i) shall not have any
        obligation to determine whether any transfer or exchange of a
        Certificate is permitted under or in accordance with this Trust
        Agreement; (ii) shall not have any personal liability to any person in
        connection with any transfer or exchange or proposed or purported
        transfer or exchange (and/or registration thereof) that is not permitted
        under or in accordance with this Trust Agreement; and (iii) shall be
        entitled to rely (and shall be fully justified and protected in so
        relying) on the Register as to the identity of the Certificateholders
        and as to the Certificates and the Percentage Interests and
        denominations thereof evidenced thereby.

                (k) Notwithstanding anything contained herein to the contrary,
        the Delaware Trustee shall not be responsible for ascertaining whether
        any transfer complies with the registration provisions or exemptions
        from the Securities Act of 1933, as amended, the Securities Act of 1934,
        as amended, applicable state securities law or the Investment Company
        Act; PROVIDED, HOWEVER, that if a certificate is specifically required
        to be delivered to the Delaware Trustee by a purchaser or transferee of
        a Certificate, the Delaware Trustee shall be under a duty to examine the
        same to determine whether it conforms to the requirements of this Trust
        Agreement and shall promptly notify the party delivering the same if
        such certificate does not so conform.

        SECTION 3.05. MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES. If (i)
any mutilated Certificate is surrendered to the Trust and the Registrar or the
Trust receives evidence to its satisfaction of the destruction, loss or theft of
the Certificate, and (ii) there is delivered to the Registrar, the Trust, the
Delaware Trustee and the Administrator such security or indemnity as may be
required by them to save each of them harmless, then, in the absence of notice
to the Registrar or the Trust that the Certificate has been acquired by a
protected purchaser, the Delaware Trustee shall execute and the Delaware Trustee
or the Registrar shall authenticate and deliver, in exchange for or in lieu of
any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of
like tenor, amount and Percentage Interest but bearing a number not
contemporaneously outstanding. Upon the issuance of any new Certificate under

                                       15
<PAGE>

this Section the Trust or the Delaware Trustee may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any transfer or exchange of the Certificate and any other
reasonable expenses (including the reasonable fees and expenses of the Trust,
Delaware Trustee, the Administrator and the Registrar) connected therewith. Any
duplicate Certificate issued pursuant to this Section shall constitute complete
and indefeasible evidence of ownership in the Trust, as if originally issued,
whether or not the lost, stolen or destroyed Certificate shall be found at any
time.

        SECTION 3.06. PERSONS DEEMED OWNERS. Prior to due presentation of a
Certificate for registration of transfer, the Trust, Delaware Trustee, the
Administrator and the Registrar may treat the Person in whose name any
Certificate is registered in the Register as the owner of such Certificate for
the purpose of receiving distributions pursuant to Section 4.01(b) hereof and
for all other purposes whatsoever, and none of the Trust, Delaware Trustee, the
Administrator or the Registrar shall be bound by any notice to the contrary.

        SECTION 3.07. ACCESS TO LIST OF CERTIFICATEHOLDERS' NAMES AND ADDRESSES.
The Trust shall furnish or cause to be furnished to the Administrator or a
Certificateholder, within 15 days after receipt by the Delaware Trustee of a
written request therefor from the Administrator or the Certificateholder, a
list, in such form as the Administrator or the Certificateholder may reasonably
require, of the names and addresses of the Certificateholders then registered in
the Register as the owner of Certificates. Each Certificateholder, by receiving
and holding a Certificate, shall be deemed to have agreed not to hold any of the
other Certificateholders, the Trust, the Delaware Trustee, the Administrator, or
the Registrar accountable by reason of the disclosure of its name and address,
regardless of the source from which such information was derived.

        SECTION 3.08. MAINTENANCE OF OFFICE OR AGENCY. The Trust will maintain
an office or agency in Wilmington, Delaware where Certificates may be
surrendered for registration of transfer or exchange. The Trust will maintain an
office at the address stated in Section 10.05 hereof where notices and demands
to or upon the Trust, the Delaware Trustee, the Administrator, and the Registrar
in respect of this Trust Agreement may be served.

        SECTION 3.09. TERMS OF CERTIFICATES BINDING. Each Certificateholder, by
assenting to the acquisition by it of a Certificate, agrees to be bound by the
terms and conditions of the Certificates and of this Trust Agreement, including
any supplements or amendments thereto or hereto, and to perform the obligations
of a Certificateholder as set forth therein or herein, in all respects as if it
were a signatory hereto. This undertaking is made for the benefit of the Trust,
the Delaware Trustee, the Administrator, the Registrar, and all other
Certificateholders, if any.

                                   ARTICLE IV

                           DISTRIBUTIONS AND PAYMENTS

        SECTION 4.01. DISTRIBUTION OF PAYMENTS.

                (a) Until the Trust shall have received written notice from the
        Trustee that the Indenture shall have been discharged pursuant to its
        terms, all revenues and receipts of any kind whatsoever generated by,

                                       16
<PAGE>

        remitted in respect of or relating to the Trust Estate and other
        payments and receipts of any kind with respect to the Trust Estate or
        otherwise included in the Trust Estate shall, if received directly by
        the Delaware Trustee, forthwith after receipt, be paid over by the
        Delaware Trustee to the indenture trustee without deduction, set-off or
        adjustment of any kind for distribution in accordance with the
        provisions of the Indenture; provided, that neither the making of such
        payments to, nor the receipt of such payments by, the Trustee or any
        other person shall ever be deemed to constitute the Trustee or any such
        person as an income beneficiary hereunder, it being understood that all
        such payments will be made pursuant to contractual obligations under the
        Indenture; and provided, further, that the Delaware Trustee shall not be
        required to turn over any such amounts received from the Trustee, or
        received on account of any amounts referred to in clause FIRST of
        subsection (b) of this Section or in Article VII hereof.

                (b) Except as otherwise provided in paragraph (a) of this
        Section, (i) all payments and amounts actually received by or on behalf
        of the Delaware Trustee from the Trust Estate sources pursuant to the
        Indenture and (ii) all other revenues, receipts and other payments of
        any kind whatsoever generated by, remitted or received in respect of or
        relating to the Trust Estate or otherwise included in the Trust Estate
        and not pledged or required to be pledged pursuant to the Indenture or
        released from the lien of the Indenture (all to the extent not
        previously distributed) (collectively, the "Payments"), each to the
        extent received by or on behalf of the Delaware Trustee, shall be
        distributed forthwith upon receipt by the Delaware Trustee in the
        following order of priority: FIRST, so much of such Payments as shall be
        required to pay or reimburse the Trust Company and the Delaware Trustee
        for any fees, expenses, indemnities or other amounts not otherwise paid
        or reimbursed to the Trust Company or the Delaware Trustee pursuant to
        the Indenture or otherwise as to which such Person is entitled to be
        paid or reimbursed hereunder shall be retained by the Delaware Trustee;
        SECOND, so much of the remainder of such Payments as shall be required
        to pay or reimburse the Administrator in performing its responsibilities
        hereunder and under the Administration Agreement for any Administration
        Fee, expenses, indemnities or other amounts not otherwise paid or
        reimbursed to the Administrator pursuant to the Indenture or otherwise
        as to which such Person is entitled to be paid or reimbursed shall be
        paid or reimbursed to the Administrator; and THIRD, the balance, if any,
        of such Payment or amount remaining thereafter shall be promptly
        distributed to the Certificateholders, pro rata based on their
        respective Percentage Interests, without deduction, set-off or
        adjustment of any kind; provided, that neither the making of such
        Payments to, nor the receipt of such Payments by, a Certificateholder or
        any other Person shall ever be deemed to constitute a Certificateholder
        or any such Person as an income beneficiary hereunder, and provided
        further, that the Delaware Trustee shall not be required to turn over
        any such Payment as compensation or reimbursement of expenses.

        SECTION 4.02. PAYMENTS FROM TRUST ESTATE ONLY. All payments to be made
by the Delaware Trustee under this Trust Agreement or by the Trust (other than
payments made pursuant to Sections 2.05(a)(ix), 2.12 and 2.14 hereof with funds
to be provided by a Certificateholder) shall be made only from the Trust Estate
and the income and proceeds from or related to the Trust Estate and only to the
extent that Delaware Trustee shall have actually received such income or

                                       17
<PAGE>

proceeds from the Trust Estate and such proceeds are not required to be remitted
to the Trustee pursuant to Section 4.01(a) hereof or the Indenture. Each
Certificateholder agrees that it will look solely to the Trust Estate to the
extent available for payment as herein provided and that, except as specifically
provided in Section 6.01 hereof, the Trust Company shall not be liable in its
individual capacity to any Certificateholder for any amounts payable under this
Trust Agreement and shall not be subject to any liability in its individual
capacity under this Trust Agreement. This Section is intended solely to limit
the liability of the Delaware Trustee and shall have no effect on the
obligations of the Certificateholders under this Trust Agreement. This Section
does not limit the liability of the Delaware Trustee set forth in Section 6.01
hereof.

        SECTION 4.03. METHOD OF PAYMENT. Unless otherwise directed by a
Certificateholder, all amounts payable to the Certificateholder pursuant to this
Trust Agreement shall be paid to it in immediately available funds by transfer
to a banking institution with bank wire transfer facilities for the account of
the Certificateholder, as the Delaware Trustee may be instructed from time to
time in writing by the Certificateholder.

        SECTION 4.04. TRUST PAYMENT DATE STATEMENT.

                (a) Based on the reports received by the Delaware Trustee
        pursuant to the Indenture, the Delaware Trustee, or the Administrator if
        requested by the Delaware Trustee pursuant to the Administration
        Agreement, shall prepare, or shall cause to be prepared for each payment
        or distribution made to the Delaware Trustee, Administrator, or
        Certificateholders pursuant to Section 4.01(b) hereof a statement
        substantially in the form of Exhibit B hereto (the "Trust Payment Date
        Statement"). In connection with any payments or distributions to the
        Delaware Trustee, the Administrator or the Certificateholders pursuant
        to Section 4.01(b) hereof, the Delaware Trustee, or the Administrator if
        requested by the Delaware Trustee pursuant to the Administration
        Agreement, shall deliver the Trust Payment Date Statement to each
        Certificateholder or as instructed by the Certificateholder in a written
        Notice to the Delaware Trustee and the Administrator.

                (b) The Delaware Trustee makes no representations or warranties
        as to the accuracy of the information contained in the reports generated
        by the Trust or the Administrator pursuant to the Indenture or, to the
        extent that the Trust Payment Date Statement contains or relies upon
        information provided by the reports provided by the Trust or the
        Administrator pursuant to the Indenture, the Trust Payment Date
        Statement. The Delaware Trustee shall not be bound to make any
        investigation as to the facts stated in the reports provided by the
        Trust pursuant to the Indenture, and may rely upon each of the reports
        provided by the Trust pursuant to the Indenture delivered to it by or on
        behalf of the Trustee.

                                   ARTICLE V

                           DUTIES OF DELAWARE TRUSTEE

        SECTION 5.01. NOTICE OF DEFAULT. In the event the Delaware Trustee shall
have actual knowledge of an Event of Default under the Indenture with respect to

                                       18
<PAGE>

any Class, the Delaware Trustee shall give prompt telephonic notice (to the
extent telephone numbers are on file with the Delaware Trustee) followed by, or
in the alternative, written notice by facsimile or overnight courier for receipt
within 48 hours of discovery thereof to the Sponsor and the Trustee. Subject to
the terms of Section 5.03 hereof, the Delaware Trustee shall take or refrain
from taking such action as the Delaware Trustee shall be instructed in writing
by the Required Certificateholders. If the Delaware Trustee shall not have
received such instructions within 20 days after giving written notice of such
event to the Certificateholders (or within such shorter period of time as may be
specified in such notice or required under the circumstances), the Delaware
Trustee, subject to instructions subsequently received from the Required
Certificateholders pursuant to the preceding sentence, may, but shall be under
no duty to, take or refrain from taking any action with respect thereto as the
Delaware Trustee shall deem advisable and in the best interests of the
Certificateholders and shall not have liability to any Person for any action or
inaction. For all purposes of this Trust Agreement, in the absence of actual
knowledge of an officer of the Delaware Trustee at its address specified in
Section 10.05 hereof, the Delaware Trustee shall not be deemed to have knowledge
of any event referred to in the first sentence of this Section unless it
receives written notice thereof from a Certificateholder or the Trustee.

        SECTION 5.02. ACTION UPON INSTRUCTION.

                (a) Whenever the Delaware Trustee is (i) unable to decide
        between alternative courses of action permitted or required by the terms
        of this Trust Agreement or under any Transaction Document, (ii) unsure
        as to the application of any provision of this Trust Agreement or any
        Transaction Document or any such provision is ambiguous as to its
        application, or is, or appears to be, in conflict with any other
        applicable provision or (iii) in the event that this Trust Agreement
        permits any determination by the Delaware Trustee or is silent or is
        incomplete as to the course of action that the Delaware Trustee,
        required to take with respect to a particular set of facts, the Delaware
        Trustee may give Notice (in such form as shall be appropriate under the
        circumstances) to the Certificateholders and the Administrator
        requesting instruction and, to the extent that the Delaware Trustee acts
        or refrains from acting in good faith in accordance with any such
        instruction received from the Required Certificateholders or the
        Administrator, the Delaware Trustee shall not be liable, on account of
        such action or inaction, to any Person. If the Delaware Trustee shall
        not have received appropriate instruction within 10 days of such notice
        (or within such shorter period of time as reasonably may be specified in
        such notice or may be necessary under the circumstances) it may, but
        shall be under no duty to, take or refrain from taking such action not
        inconsistent with this Trust Agreement or the Transaction Documents, as
        it shall deem to be in the best interests of the Certificateholders, and
        shall not have liability to any Person for such action or inaction.

                (b) Notwithstanding anything in this Trust Agreement to the
        contrary, neither the Delaware Trustee nor any of its respective agents,
        shall be required to take or refrain from taking any action under this
        Trust Agreement, the Transaction Documents or any other agreement, or
        exercise any of their respective rights and powers, if the Delaware
        Trustee shall reasonably determine (without any obligation to make any
        such determination), or shall have been advised by counsel, that such
        action or inaction (i) is contrary to the terms of this Trust Agreement,
        the terms of the Transaction Documents or any other agreement to which
        the Delaware Trustee or the Trust is a party, (ii) is likely to result

                                       19
<PAGE>

        in a breach of its duties hereunder or those of the Trust Company, (iii)
        to the actual knowledge of an officer of the Delaware Trustee that is
        responsible for the administration of the Trust, would adversely affect
        the tax status of the Trust, or (iv) is otherwise contrary to applicable
        law.

                (c) The Delaware Trustee shall not be required to expend or risk
        its own funds or otherwise incur financial liability in the performance
        of any of its respective duties hereunder, or in the exercise of any of
        its respective rights or powers, if there is reasonable ground for
        believing that the repayment of such funds or adequate indemnity against
        such risk or liability is not reasonably assured to the Delaware Trustee
        and none of the provisions contained in this Trust Agreement shall in
        any event require the Delaware Trustee to perform, or be responsible for
        the manner of performance of, any of the obligations of any other party
        under this Trust Agreement.

                (d) Subject to the terms of Sections 5.01, 5.03 and 5.06 hereof
        and the Administration Agreement, the Required Certificateholders or the
        Administrator may by written instruction direct the Delaware Trustee in
        the management of the Trust. Such direction may be exercised at any time
        by written instruction of the Required Certificateholders or the
        Administrator. Prior to taking any action on behalf of the Trust under
        this Trust Agreement or the Transaction Documents, the Delaware Trustee
        may request and, if so requested, shall receive written instructions of
        the Required Certificateholders or the Administrator specifying the
        manner in which the Delaware Trustee shall take such action. The
        Delaware Trustee shall not be liable for any action it takes or omits to
        take in good faith in reliance on the instructions of such Required
        Certificateholders or the Administrator.

                (e) The Certificateholders agree to not provide any direction to
        the Delaware Trustee to take any action that is contrary to the terms of
        this Trust Agreement, the Transaction Documents, any other agreements to
        which the Delaware Trustee or the Trust is a party, or is otherwise
        contrary to applicable law.

                (f) The Delaware Trustee shall not have the power, except upon
        the direction of each Certificateholder, to (a) remove or replace the
        Eligible Lender Trustee, any Servicer, the Administrator or any other
        administrator or (b) except as expressly provided in the Transaction
        Documents, sell the Financed Student Loans after the termination of the
        Indenture. The Delaware Trustee shall take the actions referred to in
        the preceding sentence only upon written instructions signed by the
        Certificateholders.

        SECTION 5.03. INDEMNIFICATION. The Delaware Trustee shall not be
required to take or refrain from taking any action under this Trust Agreement,
the Transaction Documents or any other agreement (other than the actions
specified in the first sentence of Section 5.01 hereof) if the Delaware Trustee
shall reasonably determine, or shall have been advised by counsel, that such
actions may result in personal liability of the Trust Company or require it to
risk or advance its own funds unless the Trust Company and the Delaware Trustee
shall have been indemnified by Certificateholders, in manner and form reasonably
satisfactory to the Trust Company and the Delaware Trustee, against any
liability, fee, cost or expense (including reasonable legal fees and expenses)

                                       20
<PAGE>

which may be incurred or charged in connection therewith; and if the Required
Certificateholders shall have directed the Delaware Trustee to take or refrain
from taking any such action, the Certificateholders so directing the Delaware
Trustee agree to furnish such indemnity as shall be required and, in addition,
to the extent not otherwise paid pursuant to the provisions of this Trust
Agreement, to pay the reasonable compensation of the Delaware Trustee for the
services performed or to be performed by it pursuant to such direction.

        SECTION 5.04. NO DUTIES EXCEPT AS SPECIFIED IN TRANSACTION DOCUMENTS.
The Delaware Trustee shall have no duty or obligation to manage, control, use,
make any payment in respect of, register, record, sell, dispose of or otherwise
deal with any of the Trust Estate, or otherwise to take or refrain from taking
any action as Delaware Trustee or on behalf of the Trust whatsoever under or in
connection with this Trust Agreement or the Transaction Documents except as (i)
expressly provided by the terms hereof or (ii) to the extent not so provided, as
expressly provided in written instructions received pursuant to Section 5.01 or
5.02 hereof; and no implied duties or obligations shall be read into this Trust
Agreement against the Delaware Trustee. The Delaware Trustee shall not in any
instance have any duty to inspect any of the Trust Estate or any records
pertaining thereto.

        SECTION 5.05. NO ACTION EXCEPT UNDER SPECIFIED DOCUMENTS OR
INSTRUCTIONS. The Delaware Trustee shall have no authority to manage, control,
use, make any payment in respect of, register, record, sell, dispose of or
otherwise deal with any part of the Trust Estate except (i) as required by the
terms of this Trust Agreement, (ii) in accordance with the powers granted to or
the authority conferred upon the Delaware Trustee pursuant to this Trust
Agreement, or (iii) in accordance with the express terms hereof or written
instructions received pursuant to Section 5.01 or 5.02 hereof.

        SECTION 5.06. ACTION BY CERTIFICATEHOLDERS WITH RESPECT TO BANKRUPTCY.
The Delaware Trustee shall not follow any direction of the Certificateholders to
take any Bankruptcy Action. The consent of the Delaware Trustee shall be
required prior to the commencement by the Trust of any Bankruptcy Action. To the
fullest extent permitted by applicable law, the Delaware Trustee shall not be
required to consent to the commencement by the Trust of any Bankruptcy Action
unless it has received a certificate signed by a nationally recognized
accounting firm (the "Accountant's Certificate") certifying that such accounting
firm reasonably believes that the Trust is insolvent. The Delaware Trustee may
conclusively rely upon the Accountant's Certificate.

        SECTION 5.07. DISCHARGE OF LIENS. Notwithstanding anything in this Trust
Agreement to the contrary, the Delaware Trustee agrees that it will, at its own
cost and expense (and not at the expense of the Trust), promptly take all action
as may be necessary to discharge any liens on any part of the Trust Estate which
are attributable to actions by or claims against the Trust Company that are not
related to the ownership of the Trust Estate or the administration of the Trust
Estate or the transactions contemplated by this Trust Agreement.

                                       21
<PAGE>

                                   ARTICLE VI

                                DELAWARE TRUSTEE

        SECTION 6.01. ACCEPTANCE OF TRUSTS AND DUTIES. The Trust Company accepts
the trusts hereby created and agrees to perform the same but only upon the terms
of this Trust Agreement. The Delaware Trustee is authorized and directed to
execute and deliver the Transaction Documents to which the Trust is to be party
and each certificate or other document attached as an exhibit to or contemplated
by the Transaction Documents to which the Trust is to be a party, as evidenced
conclusively by the Delaware Trustee's execution thereof. In addition to the
foregoing, the Delaware Trustee is authorized, but shall not be obligated, to
take all actions required of the Trust pursuant to the Transaction Documents.
Subject to Sections 2.09 and 5.06 hereof, the Delaware Trustee is further
authorized from time to time to take such action as the Required
Certificateholders instruct in writing with respect to the Transaction
Documents. The Delaware Trustee declares that it shall hold the Trust Estate,
and all amounts received by it thereunder and hereunder in trust, upon the terms
herein set forth, on behalf of the Trust for the use and benefit of all present
and future Certificateholders. The Delaware Trustee also agrees to receive and
disburse all money actually received by it constituting part of the Trust Estate
upon the terms hereof. Notwithstanding anything in this Trust Agreement to the
contrary, the Trust Company shall not be liable, answerable or accountable in
its individual capacity to any Person under any circumstances, except that such
limitation shall not limit the liability, if any, of the Trust Company to the
Certificateholders (i) for the Trust Company's own willful misconduct, bad
faith, gross negligence or reckless disregard of the duties involved in the
conduct of its offices hereunder or the willful misconduct, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of its
offices hereunder performed through its agent not appointed with due care, (ii)
in the case of the inaccuracy of any of the Trust Company's representations or
warranties contained in Section 6.03 hereof, (iii) for taxes, fees or other
charges on, based on or measured by any fees, commissions or compensation
received by it for acting as Delaware Trustee in connection with any of the
transactions contemplated by this Trust Agreement or any other agreement
contemplated by this Trust Agreement, or (iv) the failure to use ordinary care
to disburse in accordance with the terms hereof money actually received by it.
In particular, but not by way of limitation:

                (a) the Trust Company shall not be liable for any error of
        judgment made in good faith by any officer of the Delaware Trustee;

                (b) under no circumstances shall the Trust Company be personally
        liable hereunder for any indebtedness of the Trust;

                (c) the Trust Company shall not be personally liable for the
        payment of any tax imposed on the Trust or amounts that are includable
        in the federal gross income of the Certificateholders;

                (d) no provision of this Trust Agreement shall require the Trust
        Company to expend or risk funds or otherwise incur any financial
        liability in the performance of any of the Delaware Trustee's duties or

                                       22
<PAGE>

        powers hereunder, if the Trust Company believes or is advised by its
        legal counsel that repayment of such funds or adequate indemnity against
        such risk or liability is not assured or provided to its reasonable
        satisfaction;

                (e) under no circumstance shall the Trust Company be liable for
        any representation, warranty, covenant, or obligation or indebtedness of
        the Trust hereunder or under the Transaction Documents or any other
        agreement, document or certificate contemplated by the foregoing;

                (f) the Trust Company shall not be liable with respect to any
        action taken or omitted to be taken by the Administrator and the Trust
        Company shall not be liable for performing or supervising the
        performance of any obligations or duties under this Trust Agreement, the
        Administration Agreement or the Indenture, or under any other document
        contemplated hereby or thereby, which are to be performed by the
        Administrator or any other Person under such documents;

                (g) the Trust Company shall not be responsible for or in respect
        of the recitals herein, the validity or sufficiency of this Trust
        Agreement, or for the due execution hereof by the Sponsor or the
        Administrator or for the form, character, genuineness, sufficiency,
        value or validity of any of the Trust Estate or for or in respect of the
        validity or sufficiency of the Indenture or any other document
        contemplated thereby to which the Trust Company is not a party, and the
        Trust Company shall in no event assume or incur any liability, duty or
        obligation to the Trustee, the Certificateholders, or the Administrator
        other than is expressly provided for herein;

                (h) notwithstanding anything contained herein or in any of the
        Transaction Documents to the contrary, neither the Trust Company nor the
        Delaware Trustee shall be required to take any action in any
        jurisdiction other than in the State of Delaware if the taking of such
        action will (i) require the consent or approval or authorization or
        order of or the giving of notice to, or the registration with or taking
        of any action in respect of, any state or other governmental authority
        or agency of any jurisdiction other than the State of Delaware; (ii)
        result in any fee, tax or other governmental charge under the laws of
        any jurisdiction or any political subdivisions thereof in existence on
        the date hereof other than the State of Delaware becoming payable by the
        Trust Company; or (iii) subject the Trust Company to personal
        jurisdiction in any jurisdiction other than the State of Delaware for
        causes of action arising from acts unrelated to the consummation of the
        transactions by the Trust Company or the Delaware Trustee, as the case
        may be, contemplated hereby;

                (i) no provision of this Trust Agreement shall require the Trust
        Company to monitor or otherwise supervise the actions or inactions of or
        the performance by the Administrator or any sub-administrators;

                (j) the Delaware Trustee shall be deemed to have discharged its
        duties and responsibilities hereunder and under the other Transaction
        Documents to the extent the Administrator or any other administrator has
        agreed in the Administration Agreement or the related administration
        agreement, as applicable, to perform any act or to discharge any duty of
        the Delaware Trustee hereunder or under any other Transaction Document,
        and the Delaware Trustee shall not be held liable for the default or
        failure of the Administrator or any other administrator to carry out its
        obligations under the Administration Agreement or related administration
        agreement, as applicable;

                                       23
<PAGE>

                (k) the Delaware Trustee shall have no obligation to administer,
        service or collect the Financed Eligible Loans or to maintain, monitor
        or otherwise supervise the administration, servicing or collection of
        the Financed Eligible Loans; and

                (l) notwithstanding anything contained herein to the contrary,
        any funds and assets held by the Delaware Trustee on behalf of the Trust
        hereunder may be maintained and accounted for in the record-keeping and
        asset custody systems utilized by the Trust Company on behalf of the
        Delaware Trustee.

        SECTION 6.02. FURNISHING OF DOCUMENTS. The Delaware Trustee will furnish
to the Certificateholders, promptly upon receipt, duplicates or copies of all
reports, notices, requests, demands, certificates, financial statements and any
other writings furnished to the Delaware Trustee. The Delaware Trustee shall
have no duty or obligation to examine or review such items received by it.

        SECTION 6.03. NO REPRESENTATIONS OR WARRANTIES AS TO TRUST ESTATE.
Neither the Trust Company nor the Delaware Trustee makes (i) any representation
or warranty as to the title, value or merchantability of the Trust Estate or any
other representation or warranty, express or implied, with respect to the Trust
Estate whatsoever, and (ii) any representation or warranty as to the validity or
enforceability of the Transaction Documents or any other agreement contemplated
by any of the foregoing, or as to the correctness of any statement contained in
any thereof, except that the Trust Company represents and warrants to the
Certificateholders and the Administrator that this Trust Agreement and, assuming
that this Trust Agreement has been duly authorized, executed and delivered by
the Sponsor and the Administrator, each of the Transaction Documents and each
other document which contemplates execution thereof by the Delaware Trustee on
behalf of the Trust has been or will be executed and delivered by its officers
who are or will be duly authorized to execute and deliver such document on its
behalf, and that under Delaware law (excluding Delaware securities laws), this
Trust Agreement constitutes the legal, valid and binding obligation of the Trust
Company, enforceable against the Trust Company in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium and
other similar laws affecting the enforcement of creditors' rights generally and
to general principles of equity.

        SECTION 6.04. NO SEGREGATION OF MONEYS; NO INTEREST. Except as otherwise
provided herein or in written instructions from the Required Certificateholders,
moneys received by the Delaware Trustee hereunder need not be segregated in any
manner, except to the extent required by applicable law and Section 2.09 hereof,
and may be deposited under such general conditions as may be prescribed by law,
and neither the Trust Company nor the Delaware Trustee shall be liable for any
interest thereon.

        SECTION 6.05. RELIANCE; ADVICE OF COUNSEL. The Delaware Trustee shall
not incur any liability to anyone in acting in reliance upon any signature,
instrument, notice, resolution, request, consent, order, certificate, report,
opinion, bond, direction or other document or paper believed by it to be genuine
and believed by it to be signed by the proper party or parties. The Delaware

                                       24
<PAGE>

Trustee may accept a copy of a resolution of the board of directors or other
governing body of any party, certified by the secretary or a senior officer
thereof, as conclusive evidence that such resolution has been duly adopted by
such body and that the same is in full force and effect. As to any fact or
matter the manner of ascertainment of which is not specifically prescribed
herein, the Delaware Trustee may for all purposes hereof rely on a certificate
of the relevant person as to such fact or matter, and such certificate shall
constitute full protection to the Delaware Trustee for any action taken,
suffered or omitted by it in good faith in reliance thereon. In the
administration of the trusts created hereby, the Delaware Trustee may execute
any of the trusts or powers hereof and perform any of its powers and duties,
including, if applicable, the holding of title to all or any part of the Trust
Estate, hereunder directly or through agents or attorneys and may consult with
counsel, accountants and other skilled persons to be selected and employed by
it, and the Delaware Trustee shall not be liable for anything done, suffered or
omitted in good faith by it in accordance with the advice or opinion within the
scope of such person's competence of any such counsel, accountants or other
skilled persons selected by it with due care.

        SECTION 6.06. NOT ACTING IN INDIVIDUAL CAPACITY. Except as otherwise
provided in this Article, in accepting the trusts hereby created, the Trust
Company acts solely as Delaware Trustee hereunder and not in its individual
capacity, and all persons having any claim against the Delaware Trustee by
reason of the transactions contemplated hereby and by the Indenture shall look
only to the Trust Estate (or a part thereof, as the case may be) for payment or
satisfaction thereof, but subject to the lien created by Indenture.

        SECTION 6.07. BOOKS AND RECORDS. The Delaware Trustee shall be
responsible for the keeping of all customary and appropriate books and records
relating to the receipt and disbursement of all money which it may receive
hereunder or under any agreement contemplated hereby.

        SECTION 6.08. TAX RETURNS. The Delaware Trustee is hereby advised that
the Certificateholders intend that as long as the Trust has a single
Certificateholder, the entity created under this Trust Agreement shall be
treated for purposes of federal income tax, state and local income and franchise
taxes, and any other taxes imposed on, measured by or based upon gross or net
income, as a disregarded entity separate from its owner. However, if there is
more than one Certificateholder, the parties hereto intend that the entity
created under this Trust Agreement shall be treated as a partnership for federal
income tax purposes. The Trust shall, at the expense of the Certificateholders
pro rata based on their respective Percentage Interests, shall cause a firm of
independent public accountants selected by the Administrator to prepare any tax
returns or other forms certified by such accounting firm to be all, to the best
of such accounting firm's knowledge, of the tax returns or forms required to be
filed by the Trust; the Delaware Trustee shall cooperate with such accounting
firm in providing any information in its possession which is necessary or
advisable in the preparation of such tax returns and shall execute such tax
returns presented to it in execution form in a timely manner to enable the
Certificateholders to timely file such tax returns. The Delaware Trustee in its
capacity as Delaware Trustee shall sign all appropriate federal returns
presented to it in execution form; provided, however, that the Trust shall send
a copy of any such return and related information to a Certificateholder at such
times as the Certificateholder may request. In no event shall the Delaware

                                       25
<PAGE>

Trustee be liable for any liabilities, costs or expenses of the Trust, the
Administrator, or the Certificateholders arising out of the application of any
tax law, including federal, state, foreign or local income or excise taxes or
any other tax imposed on or measured by income (or any interest, penalty or
addition with respect thereto or arising from a failure to comply therewith)
except for any such liability, cost or expense attributable to any act or
omission by the Delaware Trustee, as the case may be, in breach of its
obligations under this Trust Agreement. The Delaware Trustee shall keep copies
of all returns delivered to it or filed by it. Any reports, returns, records,
filings or books, other than those customary books and records or any report or
return specifically referenced in this Section, shall be the sole responsibility
and obligation of the Administrator and the Certificateholders, and the Delaware
Trustee shall have no obligation or responsibility with respect thereto.

                                  ARTICLE VII

                       ASSUMPTION OF LIABILITY AND PAYMENT
                              FOR DELAWARE TRUSTEE

        SECTION 7.01. COMPENSATION AND EXPENSES. The Delaware Trustee shall
receive from the Trust as compensation (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express trust)
for its services hereunder such fees as may heretofore and from time to time
hereafter be agreed upon in a separate fee agreement between the Sponsor and the
Delaware Trustee. The Delaware Trustee shall be entitled to be reimbursed from
the Payments for its reasonable expenses hereunder, including, without
limitation, the reasonable compensation, expenses and disbursements of such
agents, representatives, accountants, experts and counsel as the Delaware
Trustee may employ in connection with the exercise and performance of its rights
and duties under this Trust Agreement, the Transaction Documents or any other
agreement contemplated by any of the foregoing, whether or not the transactions
contemplated hereby and thereby are consummated and to be paid as additional
reasonable compensation (which shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust) for any
extraordinary services rendered hereunder. Such compensation and reimbursement
shall be paid first from the Collection Fund created pursuant to the Indenture
to the extent and in the priority set forth in the Indenture and then from the
Payments as set forth in Section 4.01(b) hereof.

        SECTION 7.02. INDEMNIFICATION. The Trust agrees, to the fullest extent
permitted by applicable law, to assume liability for, and hereby indemnifies and
holds harmless the Trust Company, its officers, directors and employees and the
Delaware Trustee from and against any and all liabilities, obligations, losses,
damages, taxes, claims, actions, suits, costs, expenses and disbursements
(including reasonable legal fees and expenses) of any kind and nature whatsoever
which may be imposed on, incurred by or asserted at any time against the Trust
Company, its officers, directors and employees or the Delaware Trustee in any
way relating to or arising out of the Trust Estate, any of the properties
included therein, the acceptance, termination or administration of the Trust
Estate or the Trust or any action or inaction of the Delaware Trustee or the
Trust hereunder or under the Transaction Documents or any other agreement
contemplated by any of the foregoing or any certificate of a Certificateholder,
except only that the Trust shall not be required so to assume liability for any
of the matters described in the seventh sentence of Section 6.01 hereof and
provided that the Trust and the Delaware Trustee agree that such assumption of
liability for liabilities, obligations, losses, damages, taxes, claims, actions,

                                       26
<PAGE>

such costs expenses or disbursements of any kind shall be direct and primary and
not that of a guarantor. If any item assumed by the Trust under this Section is
also subject to indemnification by another party to any of the documents
specifically referenced herein, the Trust Company or the Delaware Trustee shall
first make demand on such party for indemnification of any such item but shall
not be obligated to exhaust its remedies thereunder. The indemnities contained
in this Section shall survive the resignation or removal of the Delaware Trustee
and shall survive the termination of the Trust and this Trust Agreement. Such
indemnification and reimbursement shall be paid solely from the Payments as set
forth in Section 4.01(b) hereof.

        SECTION 7.03. CERTIFICATEHOLDERS TO ASSUME LIABILITY. To the extent not
paid pursuant to Section 4.01(b) hereof and to the fullest extent permitted by
applicable law, the Certificateholders, pro rata based on their respective
Percentage Interests, shall pay or cause to be paid (or reimburse the Delaware
Trustee for) (a) all reasonable fees and expenses of the Delaware Trustee
hereunder, including, without limitation, the reasonable compensation, expenses
and disbursements of such agents, representatives, accountants, experts and
counsel as the Delaware Trustee may employ in connection with the exercise and
performance of its rights and duties under this Trust Agreement, the Transaction
Documents or any other agreement contemplated by any of the foregoing, whether
or not the transactions contemplated hereby and thereby are consummated and (b)
all amounts required to be paid by Section 7.02 hereof and not paid by the
Trust. The liabilities and indemnities contained in this Section are for the
benefit of the Trust Company, in its individual capacity and its officers,
directors and employees and shall not be construed as imposing any liabilities
on any Certificateholder or any affiliate thereof for any expense or liability
of the Trust to third parties. Neither the Certificateholders nor the
Administrator shall have liabilities for the expenses and liabilities of the
Trust (except as otherwise provided in this Trust Agreement with respect to the
Trust Company, in its individual capacity) and all such expenses and liabilities
shall be payable solely from the Trust Estate.

                                  ARTICLE VIII

                            TERMINATION OF INDENTURE

        SECTION 8.01. TERMINATION IN GENERAL. After the termination of the
Indenture in accordance with its terms, this Trust Agreement and the Trust shall
terminate and be of no further force or effect upon the final distribution by
the Delaware Trustee of all monies or other property or proceeds of the Trust
Estate in accordance with the terms of this Trust Agreement. The bankruptcy,
liquidation, dissolution, death or incapacity of any Certificateholder shall not
(a) operate to terminate this Trust Agreement or the Trust, (b) entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for partition or winding up of all or
any part of the Trust or the Trust Estate or (c) otherwise affect the rights,
obligations and liabilities of the parties hereto. Subject to Section 8.02
hereof, none of the Certificateholders shall be entitled to revoke or terminate
the Trust.

        SECTION 8.02. TERMINATION AT OPTION OF CERTIFICATEHOLDERS.
Notwithstanding Section 8.01 hereof, the Trust shall dissolve and the remaining
assets of the Trust shall be distributed to the Certificateholders pro rata in
accordance with their respective Percentage Interests and the Trust Statute, and
this Trust Agreement shall be of no further force and effect, upon the election
of all of the Certificateholders by written notice to the Delaware Trustee, if
such notice shall be accompanied by the written agreement (in form and substance

                                       27
<PAGE>

satisfactory to the Delaware Trustee) of all of the Certificateholders assuming
all the obligations of the Trust and the Delaware Trustee and releasing the
Delaware Trustee therefrom; provided, however, that until the termination of the
Indenture in accordance with its terms and full and final payment of all
Obligations outstanding thereunder, the Certificateholders may not so terminate
this Trust Agreement or the Trust.

        SECTION 8.03. TERMINATION. Upon the completion of winding up of the
Trust, including the payment or the making reasonable provision for payment of
all obligations of the Trust in accordance with Section 3808(e) of the Trust
Statute, the Delaware Trustee shall file a certificate of cancellation with the
Delaware Secretary of State in accordance with Section 3810 of the Trust
Statute, at which time the Trust and this Trust Agreement (other than Article
VII hereof) shall terminate. The Administrator shall act as the liquidator of
the Trust and shall be responsible for directing the Delaware Trustee to take
all required actions in connection with winding up the Trust.

                                   ARTICLE IX

                SUCCESSOR DELAWARE TRUSTEES, CO-DELAWARE TRUSTEES
                         AND SEPARATE DELAWARE TRUSTEES

        SECTION 9.01. RESIGNATION AND SUCCESSORS. The Delaware Trustee or any
successor may resign at any time without cause by giving at least 60 days' prior
written notice to the Certificateholders. The Required Certificateholders, may
at any time remove the Delaware Trustee without cause by written notice to the
Delaware Trustee, any such resignation or removal to be effective upon the
acceptance of appointment by a successor Delaware Trustee as hereinafter
provided. In the event of the resignation or removal of the Delaware Trustee,
the Required Certificateholders shall appoint a successor by written instrument.
If a successor Delaware Trustee shall not have been appointed within 60 days
after the giving of such notice, the Delaware Trustee or the Required
Certificateholders may apply to any court of competent jurisdiction in the
United States to appoint a successor Delaware Trustee to act until such time, if
any, as a successor shall have been appointed as provided above. Any successor
so appointed by such court shall immediately and without further act be
superseded by any successor by the Required Certificateholders. Any successor,
however appointed, shall execute and deliver to its predecessor Delaware Trustee
an instrument accepting such appointment, and thereupon such successor, without
further act, shall become vested with all the estates, properties, rights,
powers, duties and trusts of the predecessor Delaware Trustee in the trusts
hereunder with like effect as if originally named "Delaware Trustee" herein; but
upon the written request of such successor, and upon payment to the predecessor
Delaware Trustee of all amounts due to it under this Trust Agreement, such
predecessor shall execute and deliver an instrument transferring to such
successor, upon the trusts herein expressed, all the estates, properties,
rights, powers, duties and trusts of such predecessor, and such predecessor
shall duly assign, transfer, deliver and pay over to such successor all moneys
or other property then held by such predecessor upon the trusts herein
expressed. Any right of the Certificateholders against the predecessor Delaware
Trustee, in its individual capacity, shall not be prejudiced by the appointment
of any successor Delaware Trustee and shall survive the termination of the
trusts created hereby. Any successor, however appointed, shall be a bank or a
trust company incorporated or organized and doing business within the United
States of America that is an Independent Trustee and either (a) having a
combined capital and surplus of at least $50,000,000 and being subject to
supervision or examination by federal banking authorities and (b) having (or
having its obligations hereunder guaranteed by a trust company that has) a
long-term unsecured debt rating of at least BBB- by Standard & Poor's, Baa3 by
Moody's (so long as Moody's provides a Rating on any of the Obligations) or at
least the equivalent rating from another nationally recognized statistical
rating organization, if there is such an institution willing, able and legally
qualified to perform the duties of the "Delaware Trustee" hereunder upon

                                       28
<PAGE>

reasonable or customary terms. Any corporation into which the Delaware Trustee
may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the
Delaware Trustee shall be a party, or any corporation to which substantially all
the corporate trust business of the Delaware Trustee may be transferred, shall,
subject to the preceding sentence, be the "Delaware Trustee" under this Trust
Agreement without further act. Any successor Delaware Trustee, however
appointed, shall be competent and qualified to (i) serve as a trustee of a
Delaware statutory trust, (ii) take all action required by the Delaware Trustee
pursuant to the Transaction Documents, this Trust Agreement and any other
agreement contemplated by any of the foregoing, and (iii) until termination of
the Indenture in accordance with its terms, be an Independent Trustee. There
shall be at all times at least one "Delaware Trustee" that meets the
requirements of the laws of the State of Delaware. Notwithstanding anything
herein to the contrary, the resignation or removal of the Delaware Trustee shall
not be effective unless and until the Required Certificateholders appoint a
successor Delaware Trustee meeting the requirements specified above.

        SECTION 9.02. CO-DELAWARE TRUSTEES AND SEPARATE DELAWARE TRUSTEES.
Whenever the Delaware Trustee or the Required Certificateholders shall deem it
necessary or prudent in order either to conform to any law of any jurisdiction
in which all or any part of the Trust Estate shall be situated or to make any
claim or bring any suit with respect to the Trust Estate or the Indenture, or
the Delaware Trustee or the Required Certificateholders shall be advised by
counsel satisfactory to it or them that it is so necessary or prudent, the
Delaware Trustee and the Certificateholders shall execute and deliver an
agreement supplemental hereto and all other instruments and agreements, and
shall take all other action, necessary or proper to constitute one or more
persons (and the Delaware Trustee may appoint one or more of its officers)
either as co-trustee or co-trustees jointly with the Delaware Trustee of all or
any part of the Trust Estate, or as separate trustee or separate trustees of all
or any part of the Trust Estate, and to vest in such persons, in such capacity,
such title to the Trust Estate or any part thereof and such rights or duties as
may be necessary or desirable, all for such period and under such terms and
conditions as are satisfactory to the Delaware Trustee and the Required
Certificateholders and, until the termination of the Indenture in accordance
with its terms as are reasonably satisfactory to the Trustee. In case any
co-trustee or separate trustee shall dissolve, die, become incapable of acting,
resign or be removed, the title to the Trust Estate and all rights and duties of
such co-trustee or separate trustee shall, so far as permitted by law, vest in
and be exercised by the Delaware Trustee, without the appointment of a successor
to such co-trustee or separate trustee.

        SECTION 9.03. CHANGES IN IDENTITY OF A DELAWARE TRUSTEE. Upon the change
of identity of a Delaware Trustee or the addition or deletion of a Delaware
Trustee, whose identity is required to be disclosed under applicable law, the
Delaware Trustee or Delaware Trustees shall cause such filings to be made in

                                       29
<PAGE>

Delaware if required by the Trust Statute, and, at the direction of the
Certificateholders, shall cause such filings to be made, if any, as may be
required in accordance with the provisions of other applicable law, indicating
the change with respect to such Delaware Trustee's identity or such addition or
deletion of a Delaware Trustee.

                                   ARTICLE X

                                  MISCELLANEOUS

        SECTION 10.01. AMENDMENT.

                (a) Subject to Section 2.09(b)(x) hereof, this Trust Agreement
        may be amended by a written instrument signed by the Delaware Trustee
        and the Required Certificateholders to (i) cure any ambiguity or correct
        any provision of the Trust Agreement or (ii) with the consent of each
        Certificateholder the interests of which in its Certificates or the
        Trust would be adversely affected in any material respect thereby,
        supplement, add, eliminate, or change in any manner one or more
        provisions of this Trust Agreement or modify in any manner the rights of
        the Certificateholders; provided, however, that such action, as
        evidenced by an Opinion of Counsel, shall not adversely affect in any
        material respect the interests of the Trustee, or the Registered Owners
        taken as a whole, except that no such Opinion of Counsel will be
        required if each rating agency then rating any of the Notes provides
        prior written confirmation that the proposed amendment will not result
        in the withdrawal, downgrade or qualifications of the then current
        ratings of the obligations; provided further, if in the opinion of the
        Delaware Trustee any amendment adversely affects any right, duty or
        liability of, or immunity or indemnity in favor of, it or the Trust
        Company under this Trust Agreement, the Transaction Documents or any of
        the documents contemplated hereby or thereby to which it or the Trust is
        a party, or would cause or result in any conflict with or breach of or
        default under any terms, conditions or provisions of its charter
        documents or bylaws or any document contemplated hereby or thereby to
        which it is a party, the Delaware Trustee may in its sole discretion
        decline to enter into such amendment.

                (b) Promptly after the execution of any such amendment or
        consent, the Trust shall furnish written notification of the substance
        of such amendment or consent to each Rating Agency then rating any of
        the Notes and the Certificateholders.

                (c) It shall not be necessary for the consent of the
        Certificateholders pursuant to this Section to approve the particular
        form of any proposed amendment or consent, but it shall be sufficient if
        such consent shall approve the substance thereof. The manner of
        obtaining such consents (and any other consents of the
        Certificateholders provided for in this Trust Agreement) and of
        evidencing the authorization of the execution thereof by the
        Certificateholders shall be subject to such reasonable requirements as
        the Delaware Trustee may prescribe.

                (d) Nothing contained in this Section shall be construed as a
        delegation by a Certificateholder to the Delaware Trustee of the right
        of the Certificateholder to consent to any amendment, waiver,
        modification or supplement to the provisions of this Trust Agreement.

                                       30
<PAGE>

                (e) Prior to its execution of any amendment to this Trust
        Agreement, the Delaware Trustee shall be entitled to receive an Opinion
        of Counsel that such amendment is permitted by the Transaction Documents
        and that all conditions precedent have been met.

        SECTION 10.02. NO TITLE TO TRUST ESTATE, ETC. Notwithstanding anything
herein to the contrary, and pursuant to Section 3805 of the Trust Statute, a
Certificateholder shall have only an undivided beneficial interest in the Trust
Estate. Each Certificateholder's indirect interest in the Trust Estate shall be
limited and governed in all respects by the provisions of this Trust Agreement.
The Certificateholders shall not have title to or any other interest in any part
of the Trust Estate. The Certificateholders shall be entitled to receive
distributions with respect to its individual beneficial ownership interest
herein only in accordance with this Trust Agreement. No transfer, by operation
of law or otherwise, of any right, title or interest of a Certificateholder in
and to the Trust Estate or hereunder shall operate to terminate this Trust
Agreement, the Trust or the trusts hereunder or entitle any successor or
transferee to an accounting or to the transfer to it of legal title to any part
of the Trust Estate. Any obligation of the Delaware Trustee hereunder or of the
Trust under the Indenture or any other document contemplated hereby or thereby
may be performed, under extraordinary circumstances, by one or more of the
Certificateholders and any such performance shall not be construed as a
revocation of the trusts created hereby. The Certificateholders shall not have
any liability for the performance of this Trust Agreement except as expressly
set forth herein.

        SECTION 10.03. SALE OF THE TRUST ESTATE BY DELAWARE TRUSTEE IS BINDING.
Any sale or other conveyance of the Trust Estate or any part thereof by the
Delaware Trustee made pursuant to the terms of this Trust Agreement or the
Indenture shall bind the Certificateholders and shall be effective to transfer
or convey all right, title and interest of the Trust, the Delaware Trustee and
the Certificateholders in and to the Trust Estate or such part thereof. No
purchaser or other grantee shall be required to inquire as to the authorization,
necessity, expediency or regularity of such sale or conveyance or as to the
application of any sale or other proceeds with respect thereto by the Delaware
Trustee.

        SECTION 10.04. LIMITATIONS ON RIGHTS OF OTHERS. Except as provided in
Section 10.10 hereof, nothing in this Trust Agreement, whether express or
implied, shall be construed to give to any person other than the Trust Company,
the Delaware Trustee, the Sponsor, the Certificateholders and the Trustee any
legal or equitable right, remedy or claim under the Trust or in respect of this
Trust Agreement, any covenants, conditions or provisions contained herein.

        SECTION 10.05. NOTICES, ETC. All notices, requests, demands, consents
and other communications ("Notices") required or contemplated by the provisions
hereof shall refer on their face to this Trust Agreement (although failure to do
so shall not make such Notice ineffective), shall, unless otherwise stated
herein, be in writing and sent by telecopy, telegram, cable, mail (by certified
or registered mail, return receipt requested) or by reputable overnight courier
to the following addresses:

                                       31
<PAGE>

        if to the Delaware Trustee:   Wilmington Trust Company
                                      Rodney Square North
                                      1100 North Market Street
                                      Wilmington, DE  19890
                                      Attention:  Corporate Trust Administration
                                      Phone: (302) 651-1000
                                      FAX: (302) 636-4140

        if to the Sponsor:            Nelnet Student Loan Funding, LLC
                                      121 South 13th Street, Suite 301
                                      Lincoln, NE  88508
                                      Attention: Terry J. Heimes
                                      Phone: (402) 458-2300
                                      FAX: (402) 458-2399

        if to the Trustee:            To such Person and at such address as may
                                      be specified in the Indenture.

or at such other address as shall be designated in written notice to the
Delaware Trustee by the Persons entitled to receive notices pursuant to this
Trust Agreement. All such notices shall be effective when received.

        SECTION 10.06. SEVERABILITY. Any provision of this Trust Agreement which
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

        SECTION 10.07. SEPARATE COUNTERPARTS. This Trust Agreement may be
executed by the parties hereto in separate counterparts, each of which when so
executed and delivered shall be an original, but all such counterparts shall
together constitute but one and the same instrument.

        SECTION 10.08. SUCCESSORS AND ASSIGNS. All covenants and agreements
contained herein shall be binding upon and inure to the benefit of the Delaware
Trustee, the Certificateholders, the Administrator and the Trustee and their
respective successors and assigns, all as herein provided. Any request, notice,
direction, consent, waiver or other writing or action by a Certificateholder
shall bind its successors and assigns.

        SECTION 10.09. GOVERNING LAW. This Trust Agreement shall be governed by,
and construed in accordance with, the substantive laws of the State of Delaware
(without regard to conflict of law provisions) applicable to contracts to be
performed entirely within such state, including all matters of construction,
validity and performance.

        SECTION 10.10. NO LIABILITY OF CERTIFICATEHOLDERS. Except as provided in
Sections 5.03, 6.07 and 6.08 and Article VII hereof, or in any other document,
agreement or instrument executed by the Certificateholders, neither the
Certificateholders nor the Administrator shall be liable for any losses, claims,
damages, liabilities and expenses of the Trust (including expenses, to the
extent not paid out of the Trust Estate).

                                       32
<PAGE>

        SECTION 10.11. ACTIONS BY THE CERTIFICATEHOLDERS. Any actions required
to be taken by the Certificateholders shall, unless otherwise specified herein,
be taken with the consent of the Certificateholders then holding a majority of
the Percentage Interests.

                           [SIGNATURE PAGE TO FOLLOW]

                                       33
<PAGE>

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

                                 NELNET STUDENT LOAN FUNDING, LLC, as Sponsor

                                 By:  NELNET STUDENT LOAN FUNDING
                                      MANAGEMENT CORPORATION, as
                                      Manager and Special Member

                                By /s/ Jeffrey R. Noordhoek
                                   -------------------------------------------
                                    Jeffrey R. Noordhoek, Vice President

                                WILMINGTON TRUST COMPANY,  in its individual
                                capacity and in its capacity as Delaware Trustee

                                By    /s/ Joann A. Rozell
                                   ---------------------------------------------
                                Name: Joann A. Rozell
                                      ------------------------------------------
                                Title: Financial Services Officer

                                       34
<PAGE>

                                    EXHIBIT A

                    CERTIFICATEHOLDERS' CAPITAL CONTRIBUTIONS

                   Sponsor                      Percentage Interest
                   -------                      -------------------

  Nelnet Student Loan Funding, LLC                     100%
  (Aggregate principal amount of Trust Estate)
     TOTAL                                             100%

<PAGE>
<TABLE>
<CAPTION>

                                    EXHIBIT B

                      FORM OF TRUST PAYMENT DATE STATEMENT

                    For the Payment Date dated _____ __, ____

Nelnet Student Loan Trust 2004-3

<S>                                                                           <C>
(1) Amount received from the Trustee under the Indenture on the Payment Date: $
                                                                               ---------

(2) Amount, if any, deducted pursuant to Section 4.01 of the Trust Agreement: $
                                                                               ---------
     (a)  Trust Company and Delaware Trustee
         fees and expenses:                                      $
                                                                  ----------
     (b)  Administrator fees and expenses:                       $
                                                                  ----------
                                                                 Total        $
                                                                               ---------

(3) Total amount to be remitted to Certificateholders
     (Item (1) minus Item (2)):                                               $
                                                                               ---------

</TABLE>

<PAGE>

                                    EXHIBIT C

                               FORM OF CERTIFICATE

        THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND
LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM
REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE WITH THE PROVISIONS OF THE TRUST AGREEMENT REFERRED TO HEREIN.

        THE TRUST CERTIFICATE DOES NOT REPRESENT DEPOSITS OR OBLIGATIONS OF OR
ANY INTEREST IN THE ADMINISTRATOR OR WILMINGTON TRUST COMPANY.

        Certificate No. __________

        Percentage Interest evidenced by this Certificate: ___%

                                   CERTIFICATE
                   Issued by Nelnet Student Loan Trust 2004-3

        This Certificate (the "Certificate") is not guaranteed or insured by any
governmental agency or instrumentality and does not represent deposits or
obligations of or any interest in the Administrator or Wilmington Trust Company.

This Certificate certifies that _______________ is the registered owner (the
"Certificateholder") of the Percentage Interest evidenced by this Certificate
specified above in the Nelnet Student Loan Trust 2004-3 (the "Trust"). The Trust
was created pursuant to a Trust Agreement, dated as of July 1, 2004 (the "Trust
Agreement"), between Nelnet Student Loan Funding, LLC, as Initial
Certificateholder and Sponsor (the "Sponsor"), and Wilmington Trust Company, as
Delaware Trustee (the "Delaware Trustee"). To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Trust Agreement.
This Certificate is issued under and is subject to the terms, provisions and
conditions of the Trust Agreement, to which Trust Agreement the
Certificateholder by virtue of the acceptance hereof assents and by which such
Certificateholder is bound.

        This Certificate has not and will not be registered under the Securities
Act and will not be listed on any exchange. In addition to other restrictions on
transfer set forth in the Trust Agreement, no transfer of this Certificate shall
be made to a Person or entity unless such transfer is made pursuant to an
effective registration statement under the Securities Act and any applicable
state securities laws or is exempt from the registration requirements under the
Securities Act and such laws.

<PAGE>

        In the event that a transfer is to be made in reliance upon an exemption
from the Securities Act and state securities laws, in order to assure compliance
with the Securities Act and such laws, the Certificateholder desiring to effect
such transfer and such Certificateholder's prospective transferee shall each
certify to the Trust, the Delaware Trustee, the Administrator and the
transferring Certificateholder in writing the facts surrounding the transfer in
substantially the forms required by the Trust Agreement. Except in the case of a
transfer as to which the proposed transferee has provided a Rule 144A Letter
with respect to a Rule 144A transaction, there shall also be delivered to the
Trust an Opinion of Counsel to the effect that such transfer may be made
pursuant to an exemption from the Securities Act, which Opinion of Counsel shall
not be an expense of the Trust, the Delaware Trustee (unless it is the
transferee from whom such opinion is to be obtained) or of the Administrator.
The Certificateholder desiring to effect such a transfer shall, and does hereby
agree to, indemnify the Trust, the Delaware Trustee and the Administrator
against any liability that may result if the transfer is not so exempt or is not
made in accordance with federal and state securities laws.

        No transfer, sale, pledge or other disposition of this Certificate shall
be made unless prior to such transfer, sale, pledge or other disposition, the
Trust shall have received either (i) a representation letter from the transferee
of such Certificate, acceptable to and in form and substance satisfactory to the
Delaware Trustee, to the effect that such a transferee is not an employee
benefit plan subject to Section 406 of ERISA or Section 4975 of the Code, or a
person acting on behalf of any such plan, or (ii) in the case of any Certificate
presented for registration in the name of an employee benefit plan subject to
ERISA or Section 4975 of the Code (or comparable provisions of any subsequent
enactments), or a trustee of any such plan or any other person acting on behalf
of any such plan, an Opinion of Counsel satisfactory to the Trust, the Delaware
Trustee and the Administrator to the effect that the purchase or holding of such
Certificate will not result in the Trust or the Trust Estate being deemed to be
"plan assets" and subject to the prohibited transaction provisions of ERISA and
the Code and will not subject the Trust, Delaware Trustee, the Administrator or
the transferring Certificateholder to any obligation in addition to those
undertaken in the Trust Agreement. Notwithstanding anything else to the contrary
herein, in the event any purported transfer of a Certificate is made without
delivery of the representation letter referred to above, such representation
shall be deemed to have been made by the transferee by its acceptance of such
Certificate. In addition, any purported transfer of a Certificate to or on
behalf of an employee benefit plan subject to ERISA or to the Code without the
delivery to the Trust, the Delaware Trustee and the Administrator of an Opinion
of Counsel as described above shall be void and of no effect.

        This Certificate is one of a duly authorized issue of Certificates
representing a beneficial undivided ownership interest in the Trust created by
the Trust Agreement. This Certificate shall not be entitled to any benefit under
the Trust Agreement or be valid for any purpose unless manually countersigned by
an Authorized Officer of the Delaware Trustee.

        The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the Trust Estate for payment hereunder and that
neither the Delaware Trustee nor the Administrator is liable to the
Certificateholders for any amount distributable under this Certificate or the
Trust Agreement, except as expressly provided in the Trust Agreement.

                                       C-2
<PAGE>

        This Certificate does not purport to summarize the Trust Agreement and
reference is made to the Trust Agreement for the interests, rights and
limitations of rights, benefits, obligations and duties evidenced thereby, and
the rights, duties and immunities of the Delaware Trustee and the Administrator.

        Pursuant to the terms of the Trust Agreement, a distribution on all
Certificates issued by the Trust will be made as provided in the Trust Agreement
to the Person in whose name such Certificates are then registered. Such
distribution will be made pro rata to the holders based on their respective
Percentage Interests.

        Distributions on this Certificate shall be made by wire transfer to the
Certificateholder entitled thereto as its name appears on the Register. The
final distribution on the Certificate will be made in like manner, but only upon
presentment and surrender of such Certificate at the office or agency of the
Trust specified in the notice to Certificateholders of such final distribution.

        As provided in the Trust Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Register upon surrender of this Certificate for registration of transfer at the
office maintained by the Trust accompanied by a written instrument of transfer
in form satisfactory to the Trust duly executed by the Certificateholder hereof
or such Certificateholder's attorney duly authorized in writing, and thereupon
one or more new Certificates in authorized denominations and evidencing the same
aggregate ownership in the Certificates are issuable only as registered
Certificates without coupons in denominations specified in the Trust Agreement.
As provided in the Trust Agreement and subject to certain limitations therein
set forth, Certificates are exchangeable for new Certificates in authorized
denominations and evidencing the same aggregate Percentage Interest, as
requested by the Certificateholder surrendering the same.

        The Trust shall keep or cause to be kept, at the office or agency
maintained pursuant to the Trust Agreement, a Register in which, subject to such
reasonable regulations as it may prescribe, the Registrar shall provide for the
registration of Certificates and of transfers and exchanges of Certificates as
herein provided.

        Prior to due presentation of a Certificate for registration of transfer,
the Trust, the Delaware Trustee, the Administrator and the Registrar may treat
the Person in whose name any Certificate is registered in the Register as the
owner of such Certificate for the purpose of receiving distributions pursuant to
the Trust Agreement and for all other purposes whatsoever, and none of the
Trust, Delaware Trustee, the Administrator and the Registrar shall be bound by
any notice to the contrary.

        THE TRUST AGREEMENT CONSTITUTES THE CONTRACT GOVERNING THE RIGHTS AND
OBLIGATIONS OF THE CERTIFICATEHOLDERS. THIS CERTIFICATE IS ONLY EVIDENCE OF SUCH
CONTRACT AND, AS SUCH, IS SUBJECT IN ALL RESPECT TO THE TERMS OF THE TRUST
AGREEMENT, WHICH SUPERCEDES ANY INCONSISTENT STATEMENTS IN THIS CERTIFICATE.

                                      C-3
<PAGE>

        IN WITNESS WHEREOF, the Trust has caused this Certificate to be duly
executed.

        Dated: __________, _____

                                      Nelnet Student Loan Trust 2004-3

                                      By:  Wilmington Trust Company, not in its
                                      individual capacity but solely in
                                      its capacity as Delaware Trustee of
                                      the Nelnet Student Loan Trust
                                      2004-3:

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

This is one of the Certificates
referenced in the within-mentioned
Trust Agreement:

       By
         ---------------------------
       Authorized Signatory of Wilmington
       Trust Company, not in its individual
       capacity but solely in its capacity
       as Delaware Trustee of the Nelnet
       Student Loan Trust 2004-3

                                      C-4
<PAGE>

                                   ASSIGNMENT

        FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

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

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

(Please print or typewrite name and address including postal
zip code of assignee)

        the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Register of the Trust.

        I (We) further direct the Delaware Trustee to issue a new Certificate of
a like denomination, to the above named assignee and deliver such Certificate to
the following address:

        Dated: __________

                                           ------------------------------------
                                           Signature by or on behalf of assignor

                            DISTRIBUTION INSTRUCTIONS
        The assignee should include the following for purposes of distribution:

        Distributions shall be made, by wire transfer or otherwise, in
immediately available
funds to
               -----------------------------------------------------------------

--------------------------------------------------------------------------------
for the account of
                   -------------------------------------------------------------
account number __________.  Applicable statements should be mailed to

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

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

This information is provided by __________________, the assignee named above, or
____________________, as its agent.

                                      C-5
<PAGE>

                                    EXHIBIT D

                            FORM OF TRANSFEROR LETTER

                                     [DATE]

[Name and Address of Addressees]

    Re:   Nelnet Student Loan Trust 2004-3 formed pursuant to the Trust
          Agreement, dated as of July 1, 2004, between Nelnet Student Loan
          Funding, LLC, as Initial Certificateholder and Sponsor, and Wilmington
          Trust Company, as Delaware Trustee (the "Trust Agreement")

          Transferor Certificates Number[s]:  ___
          Transferee Certificates Number[s]:  ___

Ladies and Gentlemen:

        In connection with our disposition of Certificates issued by the
above-referenced Trust, we certify that (a) we understand that such Certificates
have not been registered under the Securities Act of 1933, as amended (the
"Act"), and are being disposed by us in a transaction that is exempt from the
registration requirements of the Act, (b) the disposition of the Certificates is
subject to restrictions and requirements set forth in the Trust Agreement, and
(c) we have not transferred, pledged, offered, sold or otherwise disposed of any
Certificate or any interest in any Certificate to, or solicited offers to buy or
accept a transfer, pledge or other disposition of any Certificate or any
interest in any Certificate from, any person, or otherwise approved or
negotiated with any person with respect thereto, in a manner that would be
deemed, or taken any other action which would result in, a violation of Section
5 of the Act.

                                       Very truly yours,

                                       [NAME OF TRANSFEROR]

                                       By
                                          --------------------------------------
                                               Authorized Officer

<PAGE>

                                    EXHIBIT E

                            FORM OF INVESTMENT LETTER

                                     [DATE]

[Name and Address of Addressees]

      Re: Nelnet Student Loan Trust 2004-3 formed pursuant to the Trust
          Agreement, dated as of July 1, 2004, between Nelnet Student Loan
          Funding, LLC, as Initial Certificateholder and Sponsor, and Wilmington
          Trust Company, as Delaware Trustee (the "Trust Agreement")

          Transferor Certificates Number[s]:  ___
          Transferee Certificates Number[s]:  ___

Ladies and Gentlemen:

        In connection with our acquisition of Certificates issued by the
above-referenced Trust, we certify that (a) we understand that the Certificates
are not being, and have not been, registered under the Securities Act of 1933,
as amended (the "Act"), or any state securities laws and are being, and are
required to be, transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we are an
"accredited investor," as defined in Regulation D under the Act, and have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates and based
upon our present and projected net income and net worth, we believe that we can
bear the economic risk of an immediate or future loss of its entire investment
in the Certificates, (c) we have had the opportunity to ask questions of and
have receive answers from the Trust, the Delaware Trustee, the Administrator and
the transferring Certificateholder concerning the Trust and the purchase of the
Certificates and all matters relating thereto or any additional information
deemed necessary to our decision to purchase the Certificates, (d) we are
acquiring the Certificates for investment for our own account and not with a
view to any distribution of such Certificates (but without prejudice to our
right at all times to sell or otherwise dispose of the Certificates in
accordance with clause (h) below), (e) we have not transferred, pledged,
offered, sold or otherwise disposed of any Certificate or any interest in any
Certificate to, or solicited offers to buy or accept a transfer, pledge or other
disposition of any Certificate or any interest in any Certificate from, any
person, or otherwise approached or negotiated with any person with respect
thereto, in a manner that would be deemed, or taken any other action which would
result in, a violation of Section 5 of the Act, nor have we authorized or will
authorize any person to act in such manner with respect to any Certificate or
any interest in any Certificate (f) we are not prohibited from purchasing the

<PAGE>

Certificates pursuant to the Trust Agreement, (g) we have reviewed and are
familiar with the form of the Certificates, including, without limitation, the
legends thereon, and (h) we will not sell, transfer or otherwise dispose of any
Certificates unless (i) such sale, transfer or other disposition is made
pursuant to an effective registration statement under the Act or is exempt from
such registration requirements, (ii) we have provided at our expense such
opinions of counsel (A) requested by the Delaware Trustee as are satisfactory to
the Delaware Trustee or (B) as are required by the Trust Agreement, (ii) the
purchaser or transferee of such Certificate has executed and delivered to you a
Letter to substantially the same effect as this Letter, and (iii) the purchaser
or transferee has otherwise complied with any conditions for transfer set forth
in the Trust Agreement.

        Capitalized terms used in this Letter, and not defined herein shall have
the meanings set forth in the Trust Agreement.

                                   Very truly yours,

                                   [NAME OF TRANSFEREE]

                                   By
                                      ------------------------------------------
                                           Authorized Officer

                                      E-2

<PAGE>

                                    EXHIBIT F

                            FORM OF RULE 144A LETTER

                                     [DATE]

[Name and Address of Addressees]

     Re: Nelnet Student Loan Trust 2004-3 formed pursuant to the Trust
         Agreement, dated as of July 1, 2004, between Nelnet Student Loan
         Funding, LLC, as Initial Certificateholder and Sponsor, and Wilmington
         Trust Company, as Delaware Trustee (the "Trust Agreement")

         Transferor Certificates Number[s]:  ___
         Transferee Certificates Number[s]:  ___

Ladies and Gentlemen:

               In connection with our disposition of Certificates issued by the
above referenced Trust, we certify that (a) we understand that the Certificates
are not being registered under the Securities Act of 1933, as amended (the
"Act"), or any state securities laws and are being transferred to us in a
transaction that is exempt from the registration requirements of the Act and any
such laws, (b) we have had the opportunity to ask questions of and receive
answers from the Delaware Trustee, the Administrator and the transferring
Certificateholder concerning the purchase of the Certificates and all matters
relating thereto or any additional information deemed necessary to our decision
to purchase the Certificates, (c) we are not prohibited from acquiring the
Certificates pursuant to the Trust Agreement, (d) we have not, nor has anyone
acting on our behalf offered, transferred, pledged, sold or otherwise disposed
of the Certificates or any interest in the Certificates to, or solicited any
offer to buy or accept a transfer, pledge or other disposition of the
Certificates or any interest in the Certificates from, or otherwise approached
or negotiated with respect to the Certificates, any interest in the Certificates
or any other similar security with, any person in any manner, or made any
general solicitation by means of general advertising or in any other manner, or
taken any other action, that would constitute a distribution of the Certificates
under the Securities Act or that would render the disposition of the
Certificates a violation of Section 5 of the Securities Act or require
registration pursuant thereto, nor will act, nor has authorized or will
authorize any person to act, in such manner with respect to the Certificates,
(e) we are a "qualified institutional buyer" as that term is defined in Rule
144A under the Securities Act and have completed either of the forms of
certification to that effect attached hereto as Annex 1 or Annex 2. We are aware
that the sale to us is being made in reliance on Rule 144A. We are acquiring the
Certificates for our own account or for resale pursuant to Rule 144A and

<PAGE>

further, understand that such Certificates may be resold, pledged or transferred
only (i) to a person reasonably believed to be a qualified institutional buyer
that purchases for its own account or for the account of a qualified
institutional buyer to whom notice is given that the resale, pledge or transfer
is being made in reliance on Rule 144A, or (ii) pursuant to a registration, or
another exemption from registration, under the Securities Act and in compliance
with the requirements and restrictions set forth in the Trust Agreement.

                                     Very truly yours,

                                     [NAME OF TRANSFEREE]

                                     By:
                                        ----------------------------------------
                                        Authorized Officer

                                      F-2
<PAGE>

                              ANNEX 1 TO EXHIBIT F

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [For Transferees Other Than Registered Investment Companies]

               The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Letter to which this certification
relates with respect to the Certificates described therein:

               i. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

               ii. In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because (i) the Buyer owned
and/or invested on a discretionary basis $______1 in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

                      CORPORATION, ETC. The Buyer is a corporation (other than a
               bank, savings and loan association or similar institution),
               Massachusetts or similar statutory trust, partnership, or
               charitable organization described in Section 501(c)(3) of the
               Internal Revenue Code of 1986, as amended.

                      BANK. The Buyer (a) is a national bank or banking
               institution organized under the laws of any State, territory or
               the District of Columbia, the business of which is substantially
               confined to banking and is supervised by the State or territorial
               banking commission or similar official or is a foreign bank or
               equivalent institution, and (b) has an audited net worth of at
               least $25,000,000 as demonstrated in its latest annual financial
               statements, a copy of which is attached hereto.

                      SAVINGS AND LOAN. The Buyer (a) is a savings and loan
               association, building and loan association, cooperative bank,
               homestead association or similar institution, which is supervised
               and examined by a State or Federal authority having supervision
               over any such institutions or is a foreign savings and loan
               association or equivalent institution and (b) has an audited net
               worth of at least $25,000,000 as demonstrated in its latest
               annual financial statements, A COPY OF WHICH IS ATTACHED HERETO.

---------------------
1 Buyer must own and/or invest on a discretionary basis at least $100,000,000 in
securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
invest on a discretionary basis at least $10,000,000 in securities.

<PAGE>

                      BROKER-DEALER. The Buyer is a dealer registered pursuant
               to Section 15 of the Securities Exchange Act of 1934.

                      INSURANCE COMPANY. The Buyer is an insurance company whose
               primary and predominant business activity is the writing of
               insurance or the reinsuring of risks underwritten by insurance
               companies and which is subject to supervision by the insurance
               commissioner or a similar official or agency of a State,
               territory or the District of Columbia.

                      STATE OR LOCAL PLAN. The Buyer is a plan established and
               maintained by a State, its political subdivisions, or any agency
               or instrumentality of the State or its political subdivisions,
               for the benefit of its employees.

                      ERISA PLAN. The Buyer is an employee benefit plan within
               the meaning of Title I of the Employee Retirement Income Security
               Act of 1974.

                      INVESTMENT ADVISOR. The Buyer is an investment advisor
               registered under the Investment Advisors Act of 1940.

                        SMALL BUSINESS INVESTMENT COMPANY. Buyer is a small
                business investment company licensed by the U. S. Small Business
                Administration under Section 301(c) or (d) of the Small Business
                Investment Act of 1958.

                        BUSINESS DEVELOPMENT COMPANY. Buyer is a business
                development company as defined in Section 202(a)(22) of the
                Investment Advisors Act of 1940.

               iii. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer, (iii) securities issued or guaranteed by the U. S. or any
instrumentality thereof, (iv) bank deposit notes and certificates of deposit,
(v) loan participations, (vi) repurchase agreements, (vii) securities owned but
subject to a repurchase agreement and (viii) currency, interest rate and
commodity swaps.

               iv. For purposes of determining the aggregate amount of
securities owned and/or invested on a discretionary basis by the Buyer, the
Buyer used the cost of such securities to the Buyer and did not include any of
the securities referred to in the preceding paragraph, except (i) where the
Buyer reports its securities holdings in its financial statements on the basis
of their market value, and (ii) no current information with respect to the cost
of those securities has been published. If clause (ii) above in the preceding
sentence applies, the securities may be valued at market. Further, in
determining such aggregate amount, the Buyer may have included securities owned
by subsidiaries of the Buyer, but only if such subsidiaries are consolidated
with the Buyer in its financial statements prepared in accordance with generally
accepted accounting principles and if the investments of such subsidiaries are

                                     F-1-2
<PAGE>

managed under the Buyer's direction. However, such securities were not included
if the Buyer is a majority-owned, consolidated subsidiary of another enterprise
and the Buyer is not itself a reporting company under the Securities Exchange
Act of 1934, as amended.

               v. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

               vi. Until the date of purchase of the Rule 144A Securities, the
Buyer will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

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

                                      Date:

                                     F-1-3
<PAGE>

                              ANNEX 2 TO EXHIBIT F
            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [For Transferees That are Registered Investment Companies]

               The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Letter to which this certification
relates with respect to the Certificates described therein:

               1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because Buyer is part of a
Family of Investment Companies (as defined below), is such an officer of the
adviser to such Family of Investment Companies.

               2. In connection with purchases by Buyer, the Buyer is a
"qualified institutional buyer" as defined in Rule 144A because (i) the Buyer is
an investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (I) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (II) no current information with respect to the
cost of those securities has been published. If clause (II) in the preceding
sentence applies, the securities may be valued at market.

                      The Buyer owned $_______ in securities (other than the
               excluded securities referred to below) as of the end of the
               Buyer's most recent fiscal year (such amount being calculated in
               accordance with Rule 144A).

                      The Buyer is part of a Family of Investment Companies
               which owned in the aggregate $_______ in securities (other than
               the excluded securities referred to below) as of the end of the
               Buyer's most recent fiscal year (such amount being calculated in
               accordance with Rule 144A).

               3. The term "Family of Investment Companies" as used herein means
two or more registered investment companies (or series thereof) that have the
same investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

               4. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) securities issued or guaranteed by
the U.S. or any instrumentality thereof, (iii) bank deposit notes and
certificates of deposit, (iv) loan participations, (v) repurchase agreements,
(vi) securities owned but subject to a repurchase agreement and (vii) currency,
interest rate and commodity swaps.

<PAGE>

               5. The Buyer is familiar with Rule 144A and understands that the
parties listed in the Rule 144A Transferee Letter to which this certification
relates are relying and will continue to rely on the statements made herein
because one or more sales to the Buyer will be in reliance on Rule 144A. In
addition, the Buyer will only purchase for the Buyer's own account.

               6. Until the date of purchase of the Certificates, the
undersigned will notify the parties listed in the Rule 144A Transferee Letter
which this certification relates of any changes in the information and
conclusions herein. Until such notice is given, the Buyer's purchase of the
Certificates will constitute a reaffirmation of this certification by the
undersigned as of the date of such purchase.

                                 Print Name of Buyer or Adviser

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

                                 IF AN ADVISER:

                                 -----------------------------------------------
                                 Print Name of Buyer

Date:__________

                                     F-2-2<PAGE>
                                                                     EXHIBIT 4.2

                   ESTERLINE TECHNOLOGIES CORPORATION, ISSUER

                                       TO

                       __________________________, TRUSTEE

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

                                    INDENTURE

                        DATED AS OF _____________, 200__

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

                                 DEBT SECURITIES
<PAGE>
Reconciliation and tie between Indenture, dated as of __________, 200__, and the
Trust Indenture Act of 1939, as amended.

<TABLE>
<CAPTION>
TRUST INDENTURE ACT                                       INDENTURE
OF 1939 SECTION                                           SECTION
---------------                                           -------
<S>                                                       <C>
   310(a)(1).......................................       6.12
      (a)(2).......................................       6.12
      (a)(3).......................................       TIA
      (a)(4).......................................       Not applicable
      (a)(5).......................................       TIA
      (b)..........................................       6.10; 6.12; TIA

   311(a)..........................................       TIA
      (b)..........................................       TIA

   312(a)..........................................       6.8
      (b)..........................................       TIA
      (c)..........................................       TIA

   313(a)..........................................       6.7; TIA
      (b)..........................................       TIA
      (c)..........................................       TIA
      (d)..........................................       TIA

   314(a)..........................................       9.5; 9.6; TIA
      (b)..........................................       Not applicable
      (c)(1).......................................       1.2
      (c)(2).......................................       1.2
      (c)(3).......................................       Not applicable
      (d)..........................................       Not applicable
      (e)..........................................       TIA
      (f)..........................................       TIA

   315(a)..........................................       TIA
      (b)..........................................       6.6
      (c)..........................................       TIA
      (d)(1).......................................       TIA
      (d)(2).......................................       TIA
      (d)(3).......................................       TIA
      (e)..........................................       TIA

   316(a)(last sentence)...........................       1.1
      (a)(1)(A)....................................       5.2; 5.8
      (a)(1)(B)....................................       5.7
      (b)..........................................       5.9; 5.10
      (c)..........................................       TIA
</TABLE>
<PAGE>
<TABLE>
<S>                                                       <C>
   317(a)(1).......................................       5.3
      (a)(2).......................................       5.4
      (b)..........................................       9.3

   318(a)..........................................       1.11
      (b)..........................................       TIA
      (c)..........................................       1.11; TIA
</TABLE>

-------------
      This reconciliation and tie section does not constitute part of the
      Indenture.

                                      -2-
<PAGE>
                                    CONTENTS

<TABLE>
<S>                                                                                  <C>
ARTICLE 1 Definitions and Other Provisions of General Application .................     1

      Section 1.1 Definitions .....................................................     1

      Section 1.2 Compliance Certificates and Opinions ............................    11

      Section 1.3 Form of Document Delivered to Trustee ...........................    12

      Section 1.4 Acts of Holders .................................................    12

      Section 1.5 Notices, etc., to Trustee and Company ...........................    13

      Section 1.6 Notice to Holders; Waiver .......................................    14

      Section 1.7 Headings and Table of Contents ..................................    14

      Section 1.8 Successors and Assigns ..........................................    14

      Section 1.9 Separability ....................................................    15

      Section 1.10 Benefits of Indenture ..........................................    15

      Section 1.11 Governing Law ..................................................    15

      Section 1.12 Legal Holidays .................................................    15

      Section 1.13 No Recourse Against Others .....................................    15

ARTICLE 2 Security Forms ..........................................................    16

      Section 2.1 Forms Generally .................................................    16

      Section 2.2 Form of Trustee's Certificate of Authentication .................    16

ARTICLE 3 The Securities ..........................................................    17

      Section 3.1 Amount Unlimited; Issuable in Series ............................    17

      Section 3.2 Denominations ...................................................    19

      Section 3.3 Execution, Authentication, Delivery and Dating ..................    19

      Section 3.4 Temporary Securities ............................................    22

      Section 3.5 Registration, Registration of Transfer and Exchange .............    22
</TABLE>

                                      -i-
<PAGE>
<TABLE>
<S>                                                                                  <C>
      Section 3.6 Replacement Securities ..........................................    23

      Section 3.7 Payment of Interest; Interest Rights Preserved ..................    24

      Section 3.8 Persons Deemed Owners ...........................................    25

      Section 3.9 Cancellation ....................................................    26

      Section 3.10 Computation of Interest ........................................    26

      Section 3.11 CUSIP Numbers ..................................................    26

ARTICLE 4 Satisfaction, Discharge and Defeasance ..................................    26

      Section 4.1 Termination of Company's Obligations Under the Indenture ........    26

      Section 4.2 Application of Trust Funds ......................................    28

      Section 4.3 Applicability of Defeasance Provisions; Company's Option to
                    Effect Defeasance or Covenant Defeasance ......................    28

      Section 4.4 Defeasance and Discharge ........................................    28

      Section 4.5 Covenant Defeasance .............................................    29

      Section 4.6 Conditions to Defeasance or Covenant Defeasance .................    29

      Section 4.7 Deposited Money and Government Obligations to Be Held in Trust ..    31

      Section 4.8 Transfers and Distribution at Company Request ...................    31

ARTICLE 5 Defaults and Remedies ...................................................    32

      Section 5.1 Events of Default ...............................................    32

      Section 5.2 Acceleration, Rescission and Annulment ..........................    33

      Section 5.3 Collection of Indebtedness and Suits for Enforcement by Trustee .    33

      Section 5.4 Trustee May File Proofs of Claim ................................    34

      Section 5.5 Trustee May Enforce Claims Without Possession of Securities .....    34

      Section 5.6 Delay or Omission Not Waiver ....................................    34
</TABLE>

                                      -ii-
<PAGE>
<TABLE>
<S>                                                                                  <C>
      Section 5.7 Waiver of Past Defaults .........................................    34

      Section 5.8 Control by Majority .............................................    34

      Section 5.9 Limitation on Suits by Holders ..................................    35

      Section 5.10 Rights of Holders to Receive Payment ...........................    35

      Section 5.11 Application of Money Collected .................................    36

      Section 5.12 Restoration of Rights and Remedies .............................    36

      Section 5.13 Rights and Remedies Cumulative .................................    36

ARTICLE 6 The Trustee .............................................................    36

      Section 6.1 Certain Duties and Responsibilities .............................    36

      Section 6.2 Rights of Trustee ...............................................    38

      Section 6.3 Trustee May Hold Securities .....................................    39

      Section 6.4 Money Held in Trust .............................................    39

      Section 6.5 Trustee's Disclaimer ............................................    39

      Section 6.6 Notice of Defaults ..............................................    40

      Section 6.7 Reports by Trustee to Holders ...................................    40

      Section 6.8 Securityholder Lists ............................................    40

      Section 6.9 Compensation and Indemnity ......................................    40

      Section 6.10 Replacement of Trustee .........................................    41

      Section 6.11 Acceptance of Appointment by Successor .........................    43

      Section 6.12 Eligibility; Disqualification ..................................    44

      Section 6.13 Merger, Conversion, Consolidation or Succession to Business ....    44

      Section 6.14 Appointment of Authenticating Agent ............................    44

      Section 6.15 Trustee's Application for Instructions From the Company ........    46
</TABLE>

                                     -iii-
<PAGE>
<TABLE>
<S>                                                                                  <C>
ARTICLE 7 Consolidation, Merger or Sale by the Company ............................    46

      Section 7.1 Consolidation, Merger or Sale of Assets Permitted ...............    46

      Section 7.2 No Limitations ..................................................    47

ARTICLE 8 Supplemental Indentures .................................................    47

      Section 8.1 Supplemental Indentures Without Consent of Holders ..............    47

      Section 8.2 With Consent of Holders .........................................    48

      Section 8.3 Compliance With Trust Indenture Act .............................    49

      Section 8.4 Execution of Supplemental Indentures ............................    49

      Section 8.5 Effect of Supplemental Indentures ...............................    49

      Section 8.6 Reference in Securities to Supplemental Indentures ..............    50

ARTICLE 9 Covenants ...............................................................    50

      Section 9.1 Payment of Principal, Premium, if Any, and Interest .............    50

      Section 9.2 Maintenance of Office or Agency .................................    50

      Section 9.3 Money for Securities to Be Held in Trust; Unclaimed Money .......    51

      Section 9.4 Corporate Existence .............................................    52

      Section 9.5 Reports by the Company ..........................................    52

      Section 9.6 Annual Review Certificate; Notice of Default ....................    53

      Section 9.7 Provision of Financial Statements ...............................    53

      Section 9.8  Limitations on Liens ...........................................    53

      Section 9.9 Limitations on Sales and Leasebacks .............................    54

ARTICLE 10 Redemption .............................................................    54

      Section 10.1 Applicability of Article .......................................    54

      Section 10.2 Election to Redeem; Notice to Trustee ..........................    54

      Section 10.3 Selection of Securities to Be Redeemed .........................    55
</TABLE>

                                      -iv-
<PAGE>
<TABLE>
<S>                                                                                  <C>
      Section 10.4 Notice of Redemption ...........................................    55

      Section 10.5 Deposit of Redemption Price ....................................    56

      Section 10.6 Securities Payable on Redemption Date ..........................    57

      Section 10.7 Securities Redeemed in Part ....................................    57

ARTICLE 11 Sinking Funds ..........................................................    57

      Section 11.1 Applicability of Article .......................................    57

      Section 11.2 Satisfaction of Sinking Fund Payments With Securities ..........    58

      Section 11.3 Redemption of Securities for Sinking Fund ......................    58

      EXHIBIT A FORM OF FACE OF SECURITY ..........................................     1

      FORM OF REVERSE OF SECURITY .................................................     3
</TABLE>

                                      -v-
<PAGE>
      INDENTURE, dated as of __________, 200__, from ESTERLINE TECHNOLOGIES
CORPORATION, a Delaware corporation (the "Company"), as issuer, to
___________________, a ___________________, as Trustee (the "Trustee").

                                    RECITALS

      The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured
debentures, notes or other evidences of indebtedness ("Securities") to be issued
in one or more series as herein provided.

      All things necessary to make the Securities, when executed by the Company,
the valid obligations of the Company, and to make this Indenture a valid
agreement of the Company, in accordance with their and its terms, have been
done.

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

                                    ARTICLE 1

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

SECTION 1.1 DEFINITIONS

      (a) For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:

            (1) the terms defined in this Article have the meanings assigned to
      them in this Article and include the plural as well as the singular;

            (2) all other terms used herein which are defined in the Trust
      Indenture Act, either directly or by reference therein, have the meanings
      assigned to them therein;

            (3) all accounting terms not otherwise defined herein have the
      meanings assigned to them in accordance with generally accepted accounting
      principles; and

            (4) the words "herein," "hereof" and "hereunder" and other words of
      similar import refer to this Indenture as a whole and not to any
      particular Article, Section or other subdivision.

      "Affiliate" of any specified Person means any Person directly or
indirectly controlling or controlled by, or under direct or indirect common
control with such specified Person. For purposes of this definition, "control"
when used with respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly,
<PAGE>
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

      "Agent" means any Paying Agent or Registrar.

      "Attributable Debt" means, as of the date of its determination, the
present value (discounted semiannually at an interest rate implicit in the terms
of the lease) of the obligation of a lessee for rental payments pursuant to any
Sale and Leaseback Transaction (reduced by the amount of the rental obligations
of any sublessee of all or part of the same property) during the remaining term
of such Sale and Leaseback Transaction (including any period for which the lease
relating thereto has been extended), such rental payments not to include amounts
payable by the lessee for maintenance and repairs, insurance, taxes, laws,
assessments and similar charges and for contingent rents (such as those based on
sales), provided, however, that in the case of any Sale and Leaseback
Transaction in which the lease is terminable by the lessee upon the payment of a
penalty, Attributable Debt shall mean the lesser of the present value of (a) the
rental payments to be paid under such Sale and Leaseback Transaction until the
first date (after the date of such determination) upon which it may be so
terminated plus the then applicable penalty upon such termination and (b) the
rental payments required to be paid during the remaining term of such Sale and
Leaseback Transaction (assuming such termination provision is not exercised).

      Authenticating Agent" means any authenticating agent appointed by the
Trustee pursuant to Section 6.13.

      "Authorized Newspaper" means a newspaper of general circulation, in the
English language, customarily published on each Business Day whether or not
published on Saturdays, Sundays or holidays, and of general circulation in the
place in connection with which the term is used or in the financial community of
such place. Whenever successive publications in an Authorized Newspaper are
required hereunder they may be made (unless otherwise expressly provided herein)
on any Business Day and in the same or different Authorized Newspapers.
Initially, the Authorized Newspaper in The City of New York shall be The Wall
Street Journal.

      "Board" or "Board of Directors" means the Board of Directors of the
Company, the Executive Committee or any other duly authorized committee thereof.

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

      "Business Day," when used with respect to any Place of Payment or any
other particular location referred to in this Indenture or in the Securities,
means, unless otherwise specified with respect to any Securities pursuant to
Section 3.1, each Monday, Tuesday, Wednesday, Thursday and Friday which is not a
day on which banking institutions

                                      -2-
<PAGE>
in that Place of Payment or particular location are authorized or obligated by
law or executive order to close.

      "Commission" means the Securities and Exchange Commission, as from time to
time constituted, created under the Securities Exchange Act of 1934, or, if at
any time after the execution of this Indenture such Commission is not existing
and performing the duties now assigned to it under the Trust Indenture Act, then
the body performing such duties at such time.

      "Company" means the Person named as the Company in the first paragraph of
this Indenture until one or more successor corporations shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter means
such successors.

      "Company Order" and "Company Request" mean, respectively, a written order
or request signed in the name of the Company by the Chairman of the Board, the
President or any Vice President, or, with respect to Sections 3.3, 3.4, 3.5 and
6.1, any other employee of the Company named in an Officers' Certificate
delivered to the Trustee.

      "Consolidated Net Tangible Assets" means, at any date, the total assets
appearing in the most recently prepared consolidated balance sheet of the
Company and the Subsidiaries as of the end of the most recent fiscal quarter of
the Company for which such balance sheet is available, prepared in accordance
with generally accepted accounting principles, less (a) all current liabilities
as shown on such balance sheet and (b) Intangible Assets. "Intangible Assets"
means the value (net of any applicable reserves), as shown on or reflected in
such balance sheet, of: (i) all trade names, trademarks, licenses, patents,
copyrights and goodwill; (ii) organization costs; and (iii) deferred charges
(other than prepaid items such as insurance, taxes, interest, commissions, rents
and similar items and tangible assets being amortized); but in no event shall
the term "Intangible Assets" include product development cost.

      "Corporate Trust Office" means the principal office of the Trustee at
which at any particular time its corporate trust business shall be principally
administered.

      "corporation" includes corporations, associations, companies and business
trusts.

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

      "Funded Debt" means any Indebtedness maturing by its terms more than one
year from the date of the determination thereof, including any Indebtedness
renewable or extendable at the option of the obligor to a date later than one
year from the date of determination thereof.

      "Government Obligations" means securities which are (i) direct obligations
of the United States or (ii) obligations of a Person controlled or supervised by
and acting as an agency or instrumentality of the United States the payment of
which is unconditionally guaranteed as a full faith and credit obligation by the
United States, which are not callable or redeemable at the option of the issuer
thereof, and shall also include a depositary receipt

                                      -3-
<PAGE>
issued by a bank or trust company as custodian with respect to any such
Government Obligation or a specific payment of interest on or principal of any
such Government Obligation held by such custodian for the account of the holder
of a depositary receipt, provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the
holder of such depositary receipt from any amount received by the custodian in
respect of the Government Obligation evidenced by such depositary receipt.

      "Holder" means a person in whose name a Security is registered on the
Register.

      "Indebtedness" of any corporation means all indebtedness representing
money borrowed which is created, assumed, incurred or guaranteed in any manner
by such corporation or for which such corporation is otherwise responsible or
liable (whether by agreement to purchase indebtedness of, or to supply funds to
or invest in, others).

      "Indenture" means this Indenture as originally executed or as amended or
supplemented from time to time and shall include the forms and terms (but not
defined terms established in an Officers' Certificate or a Board Resolution) of
particular series of Securities established as contemplated by Section 2.1 and
Section 3.1.

      "Indexed Security" means a Security the terms of which provide that the
principal amount thereof payable at Stated Maturity may be more or less than the
principal face amount thereof at original issuance.

      "Interest," when used with respect to an Original Issue Discount Security
which by its terms bears interest only after maturity, means interest payable
after maturity.

      "Interest Payment Date," when used with respect to any Security, means the
Stated Maturity of an installment of interest on such Security.

      "Lien" means any mortgage, pledge, security interest, lien, charge or
other encumbrance, but shall not include any of the foregoing types of
encumbrances that are incidental to the conduct of the business of the Company
or any Restricted Subsidiary or the ownership of the property and assets of any
of them and that were not incurred in connection with the incurrence of any
Indebtedness. Such incidental encumbrances that are to be excluded from the term
"Lien" include, without limitation: pledges or deposits made to secure
obligations of the Company or a Restricted Subsidiary under workmen's
compensation laws or similar legislation; liens imposed by law, such as
materialmen's, mechanics', carriers', workmen's, vendors', repairmen's, or other
like liens incurred in the ordinary course of business; governmental (federal,
state or municipal) liens arising out of contracts for the purchase of products
of the Company or a Restricted Subsidiary, and deposits or pledges to obtain the
release of any of the foregoing liens; liens created by or resulting from any
litigation or legal proceeding that is currently being contested in good faith
by an appropriate proceedings; leases made or existing on Principal Property
entered into in the ordinary course of business by the Company or a Restricted
Subsidiary; landlords' liens under leases of

                                      -4-
<PAGE>
Principal Property to which the Company or a Restricted Subsidiary is a party;
zoning restrictions, easements, licenses or restrictions on the use of Principal
Property or minor irregularities in the title thereto; deposits in connection
with bids, tenders, contracts (other than for the payment of money) to which the
Company or any Restricted Subsidiary is a party; deposits to secure public or
statutory obligations of the Company or any Restricted Subsidiary; deposits in
connection with obtaining or maintaining self-insurance or to obtain the
benefits of any law, regulation or arrangement pertaining to unemployment
insurance, old age pensions, social security or similar matters; deposits of
cash or obligations of the United States of America to secure surety, appeal or
customs bonds to which the Company or any Restricted Subsidiary is a party; and
liens for taxes or assessments or governmental charges or levies not yet due or
delinquent, or which can thereafter be paid without penalty, or which are being
contested in good faith by appropriate proceedings.

      "Maturity," when used with respect to any Security, means the date on
which the principal of such Security or an installment of principal becomes due
and payable as therein or herein provided, whether at the Stated Maturity or by
declaration of acceleration, call for redemption or otherwise.

      "Officer" means the Chairman of the Board of Directors, Vice-Chairman of
the Board of Directors, the President, any Vice President (whether or not
designated by a number or numbers, or a word or words added before or after the
title Vice-President), the Treasurer, the Secretary or assistant Secretary of
the Company.

      "Officers' Certificate" means a certificate signed by the Chairman of the
Board, the President or any Vice President.

      "Opinion of Counsel" means a written opinion of legal counsel, who may be
(a) Perkins Coie LLP, or (b) other counsel designated by the Company and who
shall be reasonably acceptable to the Trustee.

      "Original Issue Discount Security" means any Security which provides for
an amount less than the stated principal amount thereof to be due and payable
upon declaration of acceleration of the Maturity thereof pursuant to Section
5.2.

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

            (i) Securities theretofore cancelled by the Trustee or delivered to
      the Trustee for cancellation;

           (ii) Securities, or portions thereof, for whose payment or redemption
      money in the necessary amount has been theretofore deposited with the
      Trustee or any Paying Agent (other than the Company) in trust or set aside
      and segregated in trust by the Company (if the Company shall act as its
      own Paying Agent) for the Holders of such Securities provided that, if
      such Securities are to be redeemed, notice of such

                                      -5-
<PAGE>
      redemption has been duly given pursuant to this Indenture or provisions
      therefor satisfactory to the Trustee have been made;

            (iii) Securities, except to the extent provided in Sections 4.4 and
      4.5, with respect to which the Company has effected defeasance and/or
      covenant defeasance as provided in Article 4; and

            (iv) Securities which have been paid pursuant to Section 3.6 or in
      exchange for or in lieu of which other Securities have been authenticated
      and delivered pursuant to this Indenture, other than any such Securities
      in respect of which there shall have been presented to the Trustee proof
      satisfactory to it that such Securities are held by a bona fide purchaser
      in whose hands such Securities are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, or whether
sufficient funds are available for redemption or for any other purpose, and for
the purpose of making the calculations required by section 313 of the Trust
Indenture Act, (x) the principal amount of any Original Issue Discount
Securities that may be counted in making such determination or calculation and
that shall be deemed to be Outstanding for such purpose shall be equal to the
amount of principal thereof that would be (or shall have been declared to be)
due and payable, at the time of such determination, upon a declaration of
acceleration of the maturity thereof pursuant to Section 5.2, and (y) Securities
owned by the Company or any other obligor upon the Securities or any Affiliate
of the Company or of such other obligor shall be disregarded and deemed not to
be outstanding, except that, in determining whether the Trustee shall be
protected in making such calculation or in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities
which a Responsible Officer of the Trustee actually knows to be so owned shall
be so disregarded. Securities so owned which have been pledged in good faith may
be regarded as outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee's right so to act with respect to such Securities and that
the pledgee is not the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor.

      "Paying Agent" means any Person authorized by the Company to pay the
principal of, premium, if any, or interest on any Securities on behalf of the
Company.

      "Periodic Offering" means an offering of Securities of a series from time
to time the specific terms of which Securities, including, without limitation,
the rate or rates of interest or formula for determining the rate or rates of
interest thereon, if any, the Stated Maturity or Stated Maturities thereof, the
original issue date or dates thereof, the redemption provisions, if any, with
respect thereto, and any other terms specified as contemplated by Section 3.1
with respect thereto, are to be determined by the Company upon the issuance of
such Securities.

                                      -6-
<PAGE>
      "Person" means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

      "Place of Payment," when used with respect to the Securities of or within
any series, means the place or places where, subject to the provisions of
Section 9.2 the principal of, premium, if any, and interest on such Securities
are payable as specified as contemplated by Section 3.1.

      "Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 3.6 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security.

      "Principal Property" means any real property that (a) is owned by or
leased to the Company or any Restricted Subsidiary, (b) is located within the
United States and (c) has an acquisition cost plus capitalized improvements in
excess of 0.25% of Consolidated Net Tangible Assets as of the date of such
determination, other than (i) any such facility which the Board of Directors may
by resolution declare is not of material importance to the Company and the
Restricted Subsidiaries taken as a whole and (ii) any such facility, or portion
thereof, owned or leased jointly or in common with one or more persons other
than the Company and any Subsidiary and in which the interest of the Company and
all Subsidiaries does not exceed 50%.

      "Redemption Date," when used with respect to any Security to be redeemed,
means the date fixed for such redemption by or pursuant to this Indenture.

      "Redemption Price," when used with respect to any Security to be redeemed,
in whole or in part, means the price at which it is to be redeemed pursuant to
this Indenture.

      "Regular Record Date" for the interest payable on any Interest Payment
Date on the Securities of or within any series means the date specified for that
purpose as contemplated by Section 3.1.

      "Responsible Officer," when used with respect to the Trustee, shall mean
any vice president, any assistant vice president, any assistant treasurer, any
trust officer, or any other officer of the Trustee customarily performing
functions similar to those performed by the persons who at the time shall be
such officers, respectively, and also means, with respect to a particular
corporate trust matter, any other officer to whom such corporate trust matter is
referred because of his knowledge of and familiarity with the particular subject
and who shall have direct responsibility for the administration of this
Indenture.

      "Restricted Securities" means any shares of capital stock or Indebtedness
of a Restricted Subsidiary.

                                      -7-
<PAGE>
      "Restricted Subsidiary" means any Subsidiary which is hereafter
designated by the Board of Directors as a Restricted Subsidiary.

      "Sale and Leaseback Transaction" means any arrangement with any person
providing for the leasing by the Company or any Restricted Subsidiary of any
Principal Property (whether such Principal Property is now owned or hereafter
acquired) that has been or is to be sold or transferred by the Company or such
Restricted Subsidiary to such person, other than (a) temporary leases for a
term, including renewals at the option of the lessee, of not more than three
years; (b) leases between the Company and a Restricted Subsidiary or between
Restricted Subsidiaries; and (c) leases of Principal Property executed by the
time of, or within 180 days after the latest of, the acquisition, the completion
of construction or improvement (including any improvements on property which
will result in such property becoming Principal Property), or the commencement
of commercial operation of such Principal Property.

      "Secured Indebtedness" means (a) Indebtedness of the Company or a
Restricted Subsidiary which is secured by any Lien upon any Principal Property
or Restricted Securities and (b) Indebtedness of the Company or a Restricted
Subsidiary in respect of any conditional sale or other title retention agreement
covering Principal Property or Restricted Securities; but "Secured Indebtedness"
shall not include any of the following:

      (i) Indebtedness of the Company and the Restricted Subsidiaries
outstanding on __________, 200__, secured by then existing Liens upon, or
incurred in connection with conditional sales agreements or other title
retention agreements with respect to, Principal Property or Restricted
Securities;

                                      -8-
<PAGE>
      (ii) Indebtedness which is secured by (A) purchase money Liens upon
Principal Property or Restricted Securities acquired after __________, 200__, or
(B) Liens placed on Principal Property after __________, 200__, during
construction or improvement thereof (including any improvements on property
which will result in such property becoming Principal Property) or placed
thereon within 180 days after the later of acquisition, completion of
construction or improvement or the commencement of commercial operation of such
Principal Property or improvement, or placed on Restricted Securities acquired
after __________, 200__, or (C) conditional sale agreements or other title
retention agreements with respect to any Principal Property or Restricted
Securities acquired after __________, 200__ if (in each case referred to is this
subparagraph (ii)) (x) such Lien or agreement secures all or any part of the
Indebtedness incurred for the purpose of financing all or any part of the
purchase price or cost of construction of such Principal Property or improvement
or Restricted Securities and (y) such Lien or agreement does not extend to any
Principal Property or Restricted Securities other than the Principal Property or
Restricted Securities so acquired or the Principal Property, or portion thereof,
on which the property so constructed, or such improvement is located; provided,
however, that the amount by which the aggregate principal amount of Indebtedness
secured by any such Lien or agreement exceeds the cost to the Company or such
Restricted Subsidiary of the related acquisition, construction or improvement
shall be considered to be "Secured Indebtedness";

      (iii) Indebtedness which is secured by Liens on Principal Property or
Restricted Securities, which Liens exist at the time of acquisition (by any
manner whatsoever) of such Principal Property or Restricted Securities by the
Company or a Restricted Subsidiary;

      (iv) Indebtedness of Restricted Subsidiaries owing to the Company or any
other Restricted Subsidiary and Indebtedness of the Company owing to any
Restricted Subsidiary;

      (v) in the case of any corporation which becomes (by any manner
whatsoever) a Restricted Subsidiary after __________, 200__, Indebtedness which
is secured by Liens upon, or conditional sale agreements or other title
retention agreements with respect to, its property which constitutes Principal
Property or Restricted Securities, which Liens exist at the time such
corporation becomes a Restricted Subsidiary;

      (vi) guarantees by the Company of Secured Indebtedness and Attributable
Debt of any Restricted Subsidiaries and guarantees by a Restricted Subsidiary of
Secured Indebtedness and Attributable Debt of the Company and any other
Restricted Subsidiaries;

      (vii) Indebtedness arising from any Sale and Leaseback Transaction;

      (viii) Indebtedness secured by Liens on property of the Company or a
Restricted Subsidiary in favor of the United States of America, any State,
Territory or possession thereof, or the District of Columbia, or any department,
agency or instrumentality or political subdivision of the United States of
America or any State, Territory or possession thereof, or the District of
Columbia, or in favor of any other country or any political subdivision thereof,
if such Indebtedness was incurred for the purpose of financing all or any part
of the purchase

                                      -9-
<PAGE>
price or the cost of construction of the property subject to such Liens;
provided, however, that the amount by which the aggregate principal amount of
Indebtedness secured by any such Lien exceeds the cost to the Company or such
Restricted Subsidiary of the related acquisition or construction shall be
considered to be "Secured Indebtedness"; and

      (ix) the replacement, extension or renewal (or successive replacements,
extensions or renewals) of any Indebtedness (in whole or in part) excluded from
the definition of "Secured Indebtedness" by subparagraphs (i) through (viii)
above; provided, however, that no Lien securing, or conditional sale or title
retention agreement with respect to, such Indebtedness shall extend to or cover
any Principal Property or any Restricted Securities, other than such property
which secured the Indebtedness so replaced, extended or renewed (plus
improvements on or to any such Principal Property); provided further, however,
that to the extent that such replacement, extension or renewal increases the
principal amount of Indebtedness secured by such Lien or is in a principal
amount in excess of the principal amount of Indebtedness excluded from the
definition of "Secured Indebtedness" by subparagraphs (i) through (viii) above,
the amount of such increase or excess shall be considered to be "Secured
Indebtedness".

      In no event shall the foregoing provisions be interpreted to mean or their
operation to cause the same Indebtedness to be included more than once is the
calculation of "Secured Indebtedness" as that term is used in this Indenture.

      "Security" or "Securities" has the meaning stated in the first recital of
this Indenture and more particularly means any Security or Securities of the
Company issued, authenticated and delivered under this Indenture.

      "Special Record Date" for the payment of any Defaulted Interest on the
Securities of any issue means a date fixed by the Trustee pursuant to Section
3.7.

      "Stated Maturity," when used with respect to any Security or any
installment of principal thereof or interest thereon, means the date specified
in such Security as the fixed date on which the principal of such Security or
such installment of principal or interest is due and payable.

      "Subsidiary" means any corporation of which the Company at the time owns
or controls, directly or indirectly, more than 50% of the shares of outstanding
stock having general voting power under ordinary circumstances to elect a
majority of the Board of Directors of such corporation (irrespective of whether
or not at the time stock of any other class or classes of such corporation shall
have or might have voting power by reason of the happening of any contingency).

      "Trustee" means the party named as such in the first paragraph of this
Indenture until a successor Trustee replaces it pursuant to the applicable
provisions of this Indenture, and thereafter means such successor Trustee and
if, at any time, there is more than one Trustee,

                                      -10-
<PAGE>
"Trustee" as used with respect to the Securities of any series shall mean the
Trustee with respect to the Securities of that series.

      "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended,
as in effect on the date of this Indenture, except as provided in Section 8.3.

      "Yield to Maturity" means the yield to maturity, calculated by the Company
at the time of issuance of a series of Securities or, if applicable, at the most
recent determination of interest on such series, in accordance with accepted
financial practice.

      (b) The following terms shall have the meanings specified in the Sections
referred to opposite such term below:

<TABLE>
<CAPTION>
           Term                        Section
           ----                        -------
<S>                                    <C>
      "Act"                              1.4(a)
      "Bankruptcy Law"                   5.1
      "Custodian"                        5.1
      "Defaulted Interest"               3.7(b)
      "Event of Default"                 5.1
      "Register"                         3.5
      "Registrar"                        3.5
      "Valuation Date"                   3.7(c)
</TABLE>

SECTION 1.2 COMPLIANCE CERTIFICATES AND OPINIONS

      Upon any application or request by the Company to the Trustee to take any
action under any provision of this Indenture, the Company shall furnish to the
Trustee an Officers' Certificate stating that all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with, except
that in the case of any such application or request as to which the furnishing
of such documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate or
opinion need be furnished.

      Every certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture (other than pursuant to Sections 2.3,
3.3 and 9.6) shall include:

            (1) a statement that each individual signing such certificate or
      opinion has read such condition or covenant and the definitions herein
      relating thereto;

            (2) 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;

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

                                      -11-
<PAGE>
            (4) a statement as to whether, in the opinion of each such
      individual, such condition or covenant has been complied with.

SECTION 1.3 FORM OF DOCUMENT DELIVERED TO TRUSTEE

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

      Any certificates or opinions of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or Opinion of Counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations as to such matters are
erroneous.

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

SECTION 1.4 ACTS OF HOLDERS

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

      (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution

                                      -12-
<PAGE>
thereof. Where such execution is by a signer acting in a capacity other than his
individual capacity, such certificate or affidavit shall also constitute
sufficient proof of his authority. The fact and date of the execution of any
such instrument or writing, or the authority of the Person executing the same,
may also be proved in any other reasonable manner which the Trustee deems
sufficient.

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

      (d) Any request, demand, authorization, direction, notice, consent, waiver
or other Act of the Holder of any Security shall bind every future Holder of the
same Security and the holder of every Security issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof in respect of
anything done, omitted or suffered to be done by the Trustee or the Company in
reliance thereon, whether or not notation of such action is made upon such
Security.

      (e) If the Company shall solicit from the Holders any request, demand,
authorization, direction, notice, consent, waiver or other Act, the Company may,
at its option, by or pursuant to an Officers' Certificate delivered to the
Trustee, fix in advance a record date for the determination of Holders entitled
to give such request, demand, authorization, direction, notice, consent, waiver
or other Act, but the Company shall have no obligation to do so. If such a
record date is fixed, such request, demand, authorization, direction, notice,
consent, waiver or other Act may be given before or after such record date, but
only the Holders of record at the close of business on such record date shall be
deemed to be Holders for the purposes of determining whether Holders of the
requisite proportion of Outstanding Securities have authorized or agreed to
consented to such request, demand, authorization, direction, notice, consent,
waiver or other Act, and for that purpose the Outstanding Securities shall be
computed as of such record date; provided that no such authorization, agreement
or consent by the Holders on such record date shall be deemed effective unless
it shall become effective pursuant to the provisions of clause (a) of this
Section 1.4 not later than six months after the record date.

SECTION 1.5 NOTICES, ETC., TO TRUSTEE AND COMPANY

      Any request, demand, authorization, direction, notice, consent, waiver or
Act of Holders or other document provided or permitted by this Indenture to be
made upon, given or furnished to, or filed with,

            (1) the Trustee by any Holder or by the Company shall be sufficient
      for every purpose hereunder if made, given, furnished or filed in writing
      to or with the Trustee at its Corporate Trust Office, Attention: Corporate
      Trust Trustee Administration, or

            (2) the Company by the Trustee or by any Holder shall be sufficient
      for every purpose hereunder (unless otherwise herein expressly provided)
      if in writing and mailed, first-class postage prepaid, to the Company
      addressed to it at Esterline

                                      -13-
<PAGE>
      Technologies Corporation, 500 108th Avenue NE, Suite 1500,
      Bellevue,Washington 98004, Attention: Chief Financial Officer or at any
      other address previously furnished in writing to the Trustee by the
      Company.

SECTION 1.6 NOTICE TO HOLDERS; WAIVER

      Where this Indenture provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided
or otherwise agreed to by a Holder) if in writing and mailed, first-class
postage prepaid, to each Holder affected by such event, at his address as it
appears in the Register, within the time prescribed for the giving of such
notice.

      In any case where notice to Holders is given by mail, neither the failure
to mail such notice, nor any defect in any notice so mailed, to any particular
Holder shall affect the sufficiency of such notice with respect to other
Holders. Any notice mailed to a Holder in the manner herein prescribed shall be
conclusively deemed to have been received by such Holder, whether or not such
Holder actually receives such notice.

      If by reason of the suspension of regular mail service or by reason of any
other cause it shall be impracticable to give such notice as provided above,
then such notification as shall be made with the approval of the Trustee shall
constitute a sufficient notification for every purpose hereunder.

      If it shall be impractical in the opinion of the Trustee or the Company to
make any publication of any notice required hereby in an Authorized Newspaper,
any publication or other notice in lieu thereof which is made or given with the
approval of the Trustee shall constitute a sufficient publication of such
notice.

      Where this Indenture provides for notice in any manner, such notice may be
waived in writing by the Person entitled to receive such notice, either before
or after the event, and such waiver shall be equivalent of such notice. Waivers
of notice by Holders shall be filed with the Trustee, but such filing shall not
be a condition precedent to the validity of any action taken in reliance upon
such waiver.

SECTION 1.7 HEADINGS AND TABLE OF CONTENTS

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

SECTION 1.8 SUCCESSORS AND ASSIGNS

      All covenants and agreements in this Indenture by the Company shall bind
its successors and assigns, whether so expressed or not.

                                      -14-
<PAGE>
SECTION 1.9 SEPARABILITY

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

SECTION 1.10 BENEFITS OF INDENTURE

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

SECTION 1.11 GOVERNING LAW

      THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF SAID STATE WITHOUT GIVING EFFECT TO THE
PRINCIPLES OF CONFLICT OF LAWS THEREOF. This Indenture is subject to the Trust
Indenture Act and if any provision hereof limits, qualifies or conflicts with
the Trust Indenture Act, the Trust Indenture Act shall control.

SECTION 1.12 LEGAL HOLIDAYS

      In any case where any Interest Payment Date, Redemption Date, sinking fund
payment date, Stated Maturity or Maturity of any Security shall not be a
Business Day at any Place of Payment, then (notwithstanding any other provision
of this Indenture of any Security other than a provision in the Securities of
any series which specifically states that such provision shall apply in lieu of
this Section) payment of principal, premium, if any, or interest need not be
made at such Place of Payment on such date, but may be made on the next
succeeding Business Day at such Place of Payment with the same force and effect
as if made on such date; provided that no interest shall accrue on the amount so
payable for the period from and after such Interest Payment Date, Redemption
Date, sinking fund payment date, Stated Maturity or Maturity, as the case may
be.

SECTION 1.13 NO RECOURSE AGAINST OTHERS

      No director, officer, employee or stockholder, as such, of the Company
shall have any liability for any obligations of the Company under the Securities
or the Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. Each Holder by accepting a Security waives and
releases all such liability. The waiver and release are part of the
consideration for the issue of the Securities.

                                      -15-
<PAGE>
                                    ARTICLE 2

                                 SECURITY FORMS

SECTION 2.1 FORMS GENERALLY

      The Securities of each series shall be in substantially the form attached
as EXHIBIT A and as set forth pursuant to this Article, or in such other form or
forms as shall be established by delivery to the Trustee of an Officers'
Certificate or in one or more indentures supplemental hereto, in each case with
such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by this Indenture, and may have such letters, numbers
or other marks of identification and such legends or endorsements placed thereon
as may be required to comply with the rules of any securities exchange or as
may, consistently herewith, be determined by the officers executing such
Securities as evidenced by their execution of the Securities. If temporary
Securities of any series are issued as permitted by Section 3.4, the form
thereof also shall be established as provided in the preceding sentence. If the
form of Securities of any series are established by an Officers' Certificate,
such Officers' Certificate shall be delivered to the Trustee at or prior to the
delivery of the Company Order contemplated by Section 3.3 for the authentication
and delivery of such Securities.

      The permanent Securities shall be printed, lithographed or engraved or
produced by any combination of these methods or may be produced in any other
manner, all as determined by the officers executing such Securities as evidenced
by their execution of such Securities.

SECTION 2.2 FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION

      The Trustee's certificate of authentication shall be in substantially the
following form:

      This is one of the Securities of a series issued under the
within-mentioned Indenture.

Date:__________                     ___________________________,
      ----------------              ---------------------------
                                    as Trustee

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

                                      -16-
<PAGE>
                                    ARTICLE 3

                                 THE SECURITIES

SECTION 3.1 AMOUNT UNLIMITED; ISSUABLE IN SERIES

      (a) The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is unlimited. The Securities
may be issued from time to time in one or more series.

      (b) The following matters shall be established and (subject to Section
3.3) set forth, or determined in the manner provided, in an Officers'
Certificate or a Board Resolution of the Company or one or more indentures
supplemental hereto:

            (1) the title of the Securities of the series (which title shall
      distinguish the Securities of the series from all other Securities);

            (2) any limit upon the aggregate principal amount of the Securities
      of the series which may be authenticated and delivered under this
      Indenture (which limit shall not pertain to (i) Securities authenticated
      and delivered upon registration of transfer of, or in exchange for, or in
      lieu of, other Securities of the series pursuant to Section 3.4, 3.5, 3.6,
      8.6, or 10.7 and (ii) any Securities which, pursuant to the last paragraph
      of Section 3.3 are deemed never to have been authenticated and delivered
      thereunder);

            (3) the date or dates on which the principal of the Securities of
      the series is payable or the method of determination thereof;

            (4) the rate or rates at which the Securities of the series shall
      bear interest, if any, or the method of calculating such rate or rates of
      interest, the date or dates from which such interest shall accrue or the
      method by which such date or dates shall be determined, the Interest
      Payment Dates on which any such interest shall be payable and the Regular
      Record Date, if any, for the interest payable on any Interest Payment
      Date;

            (5) the place or places where, subject to the provisions of Section
      9.2, the principal of, premium, if any, and interest, if any, on
      Securities of the series shall be payable;

            (6) the period or periods within which, the price or prices at
      which, and the other terms and conditions upon which, Securities of the
      series may be redeemed, in whole or in part, at the option of the Company
      and, if other than as provided in Section 10.3, the manner in which the
      particular Securities of such series (if less than all Securities of such
      series are to be redeemed) are to be selected for redemption;

                                      -17-
<PAGE>
            (7) the obligation, if any, of the Company to redeem or purchase
      Securities of the series pursuant to any sinking fund or analogous
      provisions or upon the happening of a specified event or at the option of
      a Holder thereof and the period or periods within which, the price or
      prices at which, and the other terms and conditions upon which, Securities
      of the series shall be redeemed or purchased, in whole or in part,
      pursuant to such obligation;

            (8) if other than denominations of $1,000 and any integral multiple
      thereof, the denominations in which Securities of the series shall be
      issuable;

            (9) if the amount of payments or principal of, premium, if any, and
      interest, if any, on the Securities of the series shall be determined with
      reference to an index, formula or other method, the index, formula or
      other method by which such amounts shall be determined;

            (10) if other than the principal amount thereof, the portion of the
      principal amount of such Securities of the series which shall be payable
      upon declaration of the acceleration thereof pursuant to Section 5.2 or
      the method by which such portion shall be determined;

            (11) if other than as provided in Section 3.7, the Person to whom
      any interest on any Security of the series shall be payable and the extent
      to which, or the manner in which (including any certification requirement
      and other terms and conditions under which), any interest payable on a
      temporary Security on an Interest Payment Date will be paid if other than
      in the manner provided in Section 3.4, as applicable;

            (12) provisions, if any, granting special rights to the Holders of
      Securities of the series upon the occurrence of such events as may be
      specified;

            (13) any deletions from, modifications of or additions to the Events
      of Default set forth in Section 5.1 or covenants of the Company set forth
      in Article 9 pertaining to the Securities of the series;

            (14) under what circumstances, if any, the Company will pay
      additional amounts on the Securities of that series held by a Person who
      is not a U.S. Person in respect of taxes or similar charges withheld or
      deducted and, if so, whether the Company will have the option to redeem
      such Securities rather than pay such additional amounts (and the terms of
      any such option);

            (15) the date as of which any temporary Security representing
      outstanding Securities of the series shall be dated if other than the date
      of original issuance of the first Security of the series to be issued;

                                      -18-
<PAGE>
            (16) the applicability, if any, to the Securities of or within the
      series of Sections 4.4 and 4.5, or such other means of defeasance or
      covenant defeasance as may be specified for the Securities of such series;

            (17) if other than the Trustee, the identity of the Registrar and
      any Paying Agent or transfer agent;

            (18) any terms which may be related to warrants issued by the
      Company in connection with, or for the purchase of, Securities of such
      series, including whether and under what circumstances the Securities of
      any series may be used toward the exercise price of any such warrants; and

            (19) any other terms of the series (which terms shall not be
      inconsistent with the provisions of this Indenture), including any terms
      which may be required by or advisable under United States laws or
      regulations or advisable in connection with the marketing of Securities of
      the series.

      (c) All Securities of any one series shall be substantially identical
except as to denomination and the rate or rates of interest, if any, and Stated
Maturity, the date from which interest, if any, shall accrue and except as may
otherwise be provided in or pursuant to an Officers' Certificate pursuant to
this Section 3.1 or in an indenture supplemental hereto. All Securities of any
one series need not be issued at the same time and, unless otherwise provided, a
series may be reopened, without the consent of the Holders, for issuances of
additional Securities of such series or for the establishment of additional
terms with respect to the Securities of such series.

      (d) If any of the terms of the Securities of any series are established by
action taken pursuant to a Board Resolution, a copy of such Board Resolution
shall be certified by the Corporate Secretary or an Assistant Secretary of the
Company and delivered to the Trustee at or prior to the delivery of the
Officers' Certificate setting forth, or providing the manner for determining,
the terms of the Securities of such series, and an appropriate record of any
action taken pursuant thereto in connection with the issuance of any Securities
of such series shall be delivered to the Trustee prior to the authentication and
delivery thereof. With respect to Securities of a series subject to a Periodic
Offering, such Board Resolution or Officers' Certificate may provide general
terms for Securities of such series and provide either that the specific terms
of particular Securities of such series shall be specified in a Company Order or
that such terms shall be determined by the Company, or one or more of the
Company's agents designated in an Officers' Certificate, in accordance with the
Company Order as contemplated by the first proviso of the third paragraph of
Section 3.3

SECTION 3.2 DENOMINATIONS

      The Securities of each series shall be issuable only in definitive
registered form without coupons and in such denominations as shall be specified
as contemplated by Section 3.1. In the absence of any such provisions with
respect to the Securities of any series,

                                      -19-
<PAGE>
the Securities of such series shall be issuable in denominations of $1,000 and
any integral multiple thereof.

SECTION 3.3 EXECUTION, AUTHENTICATION, DELIVERY AND DATING

      Securities shall be executed on behalf of the Company by the Chairman,
President, any Vice President or Chief Executive Officer and attested to by the
Secretary or Assistant Secretary of the Company. The signatures of such officers
on the Securities may be manual or facsimile signatures of the present or any
future such authorized officers and may be imprinted or otherwise reproduced on
the Securities.

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

      At any time and from time to time, the Company may deliver Securities of
any series executed by the Company to the Trustee for authentication, together
with a Company Order for the authentication and make available for delivery such
Securities, and the Trustee in accordance with the Company Order shall
authenticate and deliver such Securities; provided, however, that in the case of
Securities offered in a Periodic Offering, the Trustee shall authenticate and
deliver such Securities from time to time in accordance with such other
procedures (including, without limitation, the receipt by the Trustee of oral or
electronic instructions from the Company or its duly authorized agents, promptly
confirmed in writing) acceptable to the Trustee as may be specified by or
pursuant to a Company Order delivered to the Trustee prior to the time of the
first authentication of Securities of such series.

      If the form or terms of the Securities of a series have been established
by or pursuant to one or more Officers' Certificates as permitted by Sections
2.1 and 3.1, in authenticating such Securities and accepting the additional
responsibilities under this Indenture in relation to such Securities, the
Trustee shall be entitled to receive, and (subject to section 315(a) through (d)
of the Trust Indenture Act) shall be fully protected in relying upon, an Opinion
of Counsel stating,

            (1) that the forms and terms of such Securities have been
      established in conformity with the provisions of this Indenture; and

            (2) that such Securities, when authenticated and delivered by the
      Trustee and issued by the Company in the manner and subject to any
      conditions specified in such Opinion of Counsel, will constitute valid and
      legally binding obligations of the Company, enforceable in accordance with
      their terms, subject to customary exceptions;

provided, however, that, with respect to Securities of a series subject to a
Periodic Offering, the Trustee shall be entitled to receive such Opinion of
Counsel only once at or prior to the

                                      -20-
<PAGE>
time of the first authentication of Securities of such series and that the
Opinion of Counsel above may state:

            (x) that the forms of such Securities have been, and the terms of
      such Securities (when established in accordance with such procedures as
      may be specified from time to time in a Company Order, all as contemplated
      by and in accordance with a Board Resolution or an Officers' Certificate
      pursuant to Section 3.1, as the case may be) will have been, established
      in conformity with the provisions of this Indenture; and

            (y) that such Securities, when (1) executed by the Company, (2)
      completed, authenticated and delivered by the Trustee in accordance with
      this Indenture, and (3) issued by the Company in the manner and subject to
      any conditions specified in such Opinion of Counsel, will constitute valid
      and legally binding obligations of the Company, enforceable in accordance
      with their terms, subject to customary exceptions.

      With respect to Securities of a series subject to a Periodic Offering, the
Trustee may conclusively rely, as to the authorization by the Company of any of
such Securities, the form and terms thereof and the legality, validity, binding
effect and enforceability thereof, upon the Opinion of Counsel and other
documents delivered pursuant to Sections 2.1 and 3.1 of this Section, as
applicable, at or prior to the time of the first authentication of Securities of
such series unless and until it has received written notification that such
opinion or other documents have been superseded or revoked. In connection with
the authentication and delivery of Securities of a series subject to a Periodic
Offering, the Trustee shall be entitled to assume that the Company's
instructions to authenticate and deliver such Securities do not violate any
rules, regulations or orders of any governmental agency or commission having
jurisdiction over the Company.

      If the form or terms of the Securities of a series have been established
by or pursuant to one or more Officers' Certificates as permitted by Sections
2.1 and 3.1, the Trustee shall have the right to decline to authenticate such
Securities if the issue of such Securities pursuant to this Indenture will
adversely affect the Trustee's own rights, duties or immunities under this
Indenture or otherwise in a manner which is not reasonably acceptable to the
Trustee.

      Notwithstanding the provisions of Section 3.1 and of the two preceding
paragraphs, if all of the Securities of any series are not to be issued at one
time, it shall not be necessary to deliver the Officers' Certificate otherwise
required pursuant to Section 3.1 at or prior to the time of the authentication
of each Security of such series if the Officers' Certificate is delivered at or
prior to the authentication upon original issuance of the first Security of such
series to be issued.

      Each Security shall be dated the date of its authentication.

      No Security shall be entitled to any benefits under this Indenture or be
valid or obligatory for any purpose until authenticated by the manual signature
of one of the authorized

                                      -21-
<PAGE>
signatories of the Trustee or an Authenticating Agent. Such signature upon any
Security shall be conclusive evidence, and the only evidence, that such Security
has been duly authenticated and delivered under this Indenture and is entitled
to the benefits of this Indenture.

      Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the Company,
and the Company shall deliver such Security to the Trustee for cancellation as
provided in Section 3.9 together with a written statement (which need not comply
with Section 1.2 and need not be accompanied by an Opinion of Counsel) stating
that such Security has never been issued and sold by the Company, for all
purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall not be entitled to the benefits
of this Indenture.

SECTION 3.4 TEMPORARY SECURITIES

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

      If temporary Securities of any series are issued, the Company will cause
permanent Securities of such series to be prepared without unreasonable delay.
After preparation of such permanent Securities, the temporary Securities shall
be exchangeable for such permanent Securities of like tenor upon surrender of
the temporary Securities of such series at the office or agency of the Company
pursuant to Section 9.2 in a Place of Payment for such series, without charge to
the Holder. Upon surrender for cancellation of any one or more temporary
Securities of any series, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a like principal amount of
Permanent Securities of the same series of authorized denominations and of like
tenor. Until so exchanged, the temporary Securities of any series shall in all
respects be entitled to the same benefits under this Indenture as permanent
Securities of such series except as otherwise specified as contemplated by
Section 3.1.

SECTION 3.5 REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE

      The Company shall cause to be kept at the Corporate Trust Office of the
Trustee or in any office or agency to be maintained by the Company in accordance
with Section 9.2 in a Place of Payment a register (the "Register") in which,
subject to such reasonable regulations as it may prescribe, the Company shall
provide for the registration of Securities and the registration of transfers of
Securities. The Register shall be in written form or any other form capable of
being converted into written form within a reasonable time. The Trustee is
hereby

                                      -22-
<PAGE>
appointed "Registrar" for the purpose of registering Securities and transfers of
Securities as herein provided.

      Upon surrender for registration of transfer of any Security of any series
at the office or agency maintained pursuant to Section 9.2 in a Place of Payment
for that series, the Company shall execute, and the Trustee shall authenticate
and deliver, in the name of the designated transferee or transferees, one or
more new Securities of the same series, of any authorized denominations and of a
like aggregate principal amount and tenor.

      At the option of the Holder, Securities of any series may be exchanged for
other Securities of the same series, of any authorized denominations and of like
aggregate principal amount containing identical terms and provisions, upon
surrender of the Securities to be exchanged at such office or agency. Whenever
any Securities are so surrendered for exchange, the Company shall execute, and
the Trustee shall authenticate and deliver, the Securities which the Holder
making the exchange is entitled to receive.

      Whenever any Securities are surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Securities which
the Holder making the exchange is entitled to receive.

      All Securities issued upon any registration of transfer or upon any
exchange of Securities shall be the valid obligations of the Company, evidencing
the same debt, and entitled to the same benefits under this Indenture, as the
Securities surrendered upon such registration of such transfer or exchange.

      Every Security presented or surrendered for registration of transfer or
for exchange shall (if so required by the Company, the Registrar or the Trustee)
be duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to those of the Company, the Registrar and the Trustee requiring
such written instrument of transfer duly executed by the Holder thereof or his
attorney duly authorized in writing.

      No service change shall be made for any registration of transfer or for
any exchange of Securities, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration or transfer or exchange of Securities, other
than exchanges pursuant to Section 3.4 or 10.7 not involving any transfer.

      The Company shall not be required (i) to issue, register the transfer of,
or exchange any Securities for a period beginning at the opening of business 15
days before any selection for redemption of Securities of like tenor and of the
series of which such Security is a part and ending at the close of business on
the earliest date on which the relevant notice of redemption is deemed to have
been given to all Holders of Securities of like tenor and of such series to be
redeemed or (ii) to register the transfer of or exchange of any Security so
selected for redemption, in whole or in part, except the unredeemed portion of
any Security being redeemed in part.

                                      -23-
<PAGE>

SECTION 3.6       REPLACEMENT SECURITIES

          If a mutilated Security is surrendered to the Trustee, together with,
in proper cases, such security or indemnity as may be required by the Company or
the Trustee to save each of them harmless, the Company shall execute and the
Trustee shall authenticate and deliver a replacement Security of the same series
and date of maturity, if the Trustee's requirements are met.

         If there shall be delivered to the Company and the Trustee (i) evidence
to their satisfaction of the destruction, loss or theft of any Security and (ii)
such security or indemnity as may be required by them to save each of them and
any agency of either of them harmless, then, in the absence of notice to the
Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and
deliver in lieu of any such destroyed, lost or stolen Security, a replacement
Security of the same series and principal amount, containing identical terms and
provisions and bearing a number not contemporaneously outstanding.

         In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Security, pay such Security.

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

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

         The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities.

SECTION 3.7       PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED

         Unless otherwise provided as contemplated by Section 3.1, interest, if
any, on any Security which is payable, and is punctually paid or duly provided
for, on any Interest Payment Date shall be paid to the Person in whose name that
Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest at the office or agency
maintained for such purpose pursuant to Section 9.2; provided, however, that, at
the option of the Company, interest on any series of Securities that bear
interest may be paid (i) by check mailed to the address of the Person entitled
thereto as it shall appear on the Register of Holders of Securities of such
series or (ii) to the extent

                                      -24-
<PAGE>
specified as contemplated by Section 3.1, by wire transfer to an account
maintained by the Person entitled thereto as specified in the Register of
Holders of Securities of such series.

         Unless otherwise provided as contemplated by Section 3.1, any interest
on any Security of any series which is payable, but is not punctually paid or
duly provided for, on any interest payment date (herein called "Defaulted
Interest") shall forthwith cease to be payable to the Holder on the relevant
Regular Record Date by virtue of having been such Holder, and such Defaulted
Interest may be paid by the Company, at its election in each case, as provided
in clause (1) or (2) below:

                  (1) The Company may elect to make payment of any Defaulted
         Interest to the Persons in whose names the Securities of such series
         (or their respective Predecessor Securities) are registered at the
         close of business on a Special Record Date for the payment of such
         Defaulted Interest, which shall be fixed in the following manner. The
         Company shall deposit with the Trustee an amount of money equal to the
         aggregate amount proposed to be paid in respect of such Defaulted
         Interest or shall make arrangements satisfactory to the trustee for
         such deposit prior to the date of the proposed payment, such money when
         deposited to be held in trust for the benefit of the Persons entitled
         to such Defaulted Interest as in this clause (1) provided. Thereupon
         the Trustee shall fix a Special Record Date for the payment of such
         Defaulted Interest which shall be not more than 15 days and not less
         than 10 days prior to the date of the proposed payment and not less
         than 10 days after the receipt by the Trustee of the notice of the
         proposed payment. The Trustee shall promptly notify the Company of such
         Special Record Date and, in the name and at the expense of the Company
         shall cause notice of the proposed payment of such Defaulted Interest
         and the Special Record Date therefor to be mailed, first-class postage
         prepaid, to each Holder of Securities of such series at his address as
         it appears in the Register, not less than 10 days prior to such Special
         Record Date. Notice of the proposed payment of such Defaulted Interest
         and the Special Record Date therefor having been so mailed, such
         Defaulted Interest shall be paid to the Persons in whose names the
         Securities of such series (or their respective Predecessor Securities)
         are registered at the close of business on such Special Record Date and
         shall no longer be payable pursuant to the following clause (2).

                  (2) The Company may make payment of any Defaulted Interest to
         the Persons in whose names the Securities of such series (or their
         respective Predecessor Securities) are registered at the close of
         business on a specified date in any other lawful manner not
         inconsistent with the requirements of any securities exchange on which
         such Securities may be listed, and upon such notice as may be required
         by such exchange, if, after notice given by the Company to the Trustee
         of the proposed payment pursuant to this clause (2), such manner of
         payment shall be deemed practicable by the Trustee.

         Subject to the foregoing provisions of this Section and Section 3.5,
each Security delivered under this Indenture upon registration of transfer of or
in exchange for or in lieu of

                                      -25-
<PAGE>
any other Security shall carry the rights to interest accrued and unpaid, and to
accrue, which were carried by such other Security.

SECTION 3.8       PERSONS DEEMED OWNERS

         Prior to due presentment of any Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name such Security is registered as the owner of such
Security for the purpose of receiving payment of principal of, premium, if any,
and (subject to Section 3.7) interest on such Security and for all other
purposes whatsoever, whether or not such Security be overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

SECTION 3.9       CANCELLATION

         The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and any Paying Agent shall forward to the Trustee
any Securities surrendered to them for replacement, for registration of
transfer, or for exchange or payment. The Trustee shall cancel all Securities
surrendered for replacement, for registration of transfer, or for exchange,
payment, redemption or cancellation and may dispose of cancelled Securities in
accordance with its procedures for the disposition of cancelled securities and
issue a certificate of disposition to the Company. The Company may not issue new
Securities to replace Securities that it has paid or delivered to the Trustee
for cancellation, except as expressly permitted in the terms of Securities for
any particular series or as permitted pursuant to the terms of this Indenture.

SECTION 3.10      COMPUTATION OF INTEREST

         Except as otherwise specified as contemplated by Section 3.1 (i)
interest of any Securities that bear interest at a fixed rate shall be computed
on the basis of a 360-day year of twelve 30 day months and (ii) interest on any
Securities the bear interest at a variable rate shall be computed on the basis
of the actual number of days in an interest period divided by 360 or the actual
number of days in the year.

SECTION 3.11      CUSIP NUMBERS

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

                                      -26-
<PAGE>
                                    ARTICLE 4

                     SATISFACTION, DISCHARGE AND DEFEASANCE

SECTION 4.1       TERMINATION OF COMPANY'S OBLIGATIONS UNDER THE INDENTURE

         Except as otherwise provided as contemplated by Section 3.1, this
Indenture shall upon Company Request cease to be of further effect with respect
to Securities of or within any series (except as to any surviving rights of
registration of transfer or exchange of such Securities and replacement of such
Securities which may have been lost, stolen or mutilated as herein expressly
provided for) and the Trustee, at the expense of the Company, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture
with respect to such Securities when

                    (1) either

                              (A) all such Securities previously authenticated
                    and delivered (other than (i) such Securities which have
                    been destroyed, lost or stolen and which have been replaced
                    or paid as provided in Section 3.6, and (ii) such Securities
                    for whose payment money has theretofore been deposited in
                    trust or segregated and held in trust by the Company and
                    thereafter repaid to the Company or discharged from such
                    trust, as provided in Section 9.3) have been delivered to
                    the Trustee for cancellation; or

                              (B) all Securities of such series not theretofore
                    delivered to the Trustee for cancellation

                                        (i) have become due and payable, or

                                        (ii) will become due and payable at
                              their Stated Maturity within one year, or

                                        (iii) if redeemable at the option of the
                              Company, are to be called for redemption within
                              one year under arrangements satisfactory to the
                              Trustee for giving of notice of redemption by the
                              Trustee in the name, and at the expense, of the
                              Company,

                    and the Company, in the case of (i), (ii) or (iii) above,
                    has irrevocably deposited or caused to be deposited with the
                    Trustee as trust funds in trust for the purpose an amount
                    sufficient to pay and discharge the entire indebtedness on
                    such Securities not theretofore delivered to the Trustee for
                    cancellation, for principal, premium, if any, and interest,
                    with respect thereto, to the date of such deposit (in the
                    case of Securities which have become due and payable) or to
                    the Stated Maturity or Redemption Date, as the case may be;

                                      -27-
<PAGE>
                    (2) the Company has paid or caused to be paid all other sums
          payable hereunder by the Company; and

                    (3) the Company has delivered to the Trustee an Officers'
          Certificate and an Opinion of Counsel, each stating that all
          conditions precedent herein provided for relating to the satisfaction
          and discharge of this Indenture as to such series have been complied
          with.

Notwithstanding the satisfaction and discharge of this Indenture, the obligation
of the Company to the Trustee and any predecessor Trustee under Section 6.9, the
obligations of the Company to any Authenticating Agent under Section 6.13 and,
if money shall have been deposited with the Trustee pursuant to subclause (B) of
clause (1) of this Section, the obligations of the Trustee under Section 4.2 and
the last paragraph of Section 9.3 shall survive.

SECTION 4.2       APPLICATION OF TRUST FUNDS

         Subject to the provisions of the last paragraph of Section 9.3, all
money deposited with the Trustee pursuant to Section 4.1 shall be held in trust
and applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal, premium, if any,
and any interest for whose payment such money has been deposited with or
received by the Trustee, but such money need not be segregated from other funds
except to the extent required by law.

SECTION 4.3       APPLICABILITY OF DEFEASANCE PROVISIONS; COMPANY'S OPTION TO
                  EFFECT DEFEASANCE OR COVENANT DEFEASANCE

         If pursuant to Section 3.1 provision is made for either or both of (i)
defeasance of the Securities of or within a series under Section 4.4 or (ii)
covenant defeasance of the Securities of or within a series under Section 4.5,
then the provisions of such Section or Sections, as the case may be, together
with the provisions of Sections 4.6 through 4.9 inclusive, with such
modifications thereto as may be specified pursuant to Section 3.1 with respect
to any Securities, shall be applicable to such Securities, and the Company may
at its option by Board Resolution, at any time, with respect to such Securities,
elect to have Section 4.4 (if applicable) or Section 4.5 (if applicable) be
applied to such Outstanding Securities upon compliance with the conditions set
forth below in this Article.

SECTION 4.4       DEFEASANCE AND DISCHARGE

         Upon the Company's exercise of the option specified in Section 4.3
applicable to this Section with respect to the Securities of or within a series,
the Company shall be deemed to have been discharged from its obligations with
respect to such Securities on the date the conditions set forth in Section 4.6
are satisfied (hereinafter "defeasance"). For this purpose, such defeasance
means that the Company shall be deemed to have paid and discharged the entire
indebtedness represented by such Securities which shall thereafter be deemed to
be

                                      -28-
<PAGE>
"Outstanding" only for the purposes of Section 4.7 and the other Sections of
this Indenture referred to in clause (ii) of this Section, and to have satisfied
all its other obligations under such Securities and this Indenture insofar as
such Securities are concerned (and the Trustee, at the expense of the Company,
shall on Company Order execute proper instruments acknowledging the same),
except the following which shall survive until otherwise terminated or
discharged hereunder: (i) the rights of Holders of such Securities to receive,
solely from the trust funds described in Section 4.6(a) and as more fully set
forth in such Section, payments in respect of the principal of, premium, if any,
and interest, if any, on such Securities when such payments are due; (ii) the
Company's obligations with respect to such Securities under Sections 3.5, 3.6,
9.2 and 9.3 and with respect to the payment of additional amounts, if any,
payable with respect to such Securities as specified pursuant to Section
3.1(b)(16); (iii) the rights, powers, trusts, duties and immunities of the
Trustee hereunder; and (iv) this Article 4. Subject to compliance with this
Article 4, the Company may exercise its option under this Section
notwithstanding the prior exercise of its option under Section 4.5 with respect
to such Securities. Following a defeasance, payment of such Securities may not
be accelerated because of an Event of Default.

SECTION 4.5       COVENANT DEFEASANCE

         Upon the Company's exercise of the option specified in Section 4.3
applicable to this Section with respect to any Securities of or within a series,
the Company shall be released from its obligations under Sections 7.1 and 9.4,
and, if specified pursuant to Section 3.1, its obligations under any other
covenant, with respect to such Securities on and after the date the conditions
set forth in Section 4.6 are satisfied (hereinafter, "covenant defeasance"), and
such Securities shall thereafter be deemed to be not "Outstanding" for the
purposes of any direction, waiver, consent or declaration or Act of Holders (and
the consequences of any thereof) in connection with Sections 7.1 and 9.4, or
such other covenant, but shall continue to be deemed "Outstanding" for all other
purposes hereunder. For this purpose, such covenant defeasance means that, with
respect to such Securities, the Company may omit to comply with and shall have
no liability in respect of any term, condition or limitation set forth in any
such Section or such other covenant, whether directly or indirectly, by reason
of any reference elsewhere herein to any such Section or such other covenant or
by reason of reference in any such Section or such other covenant to any other
provision herein or in any other document and such omission to comply shall not
constitute a Default or an Event of Default under Section 5.1(3) or 5.1(7) or
otherwise, as the case may be, but, except as specified above, the remainder of
this Indenture and such Securities shall be unaffected thereby.

SECTION 4.6       CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE

         The following shall be the conditions to application of Section 4.4 or
Section 4.5 to any Securities of or within a series:

                    (a) The Company shall have deposited or caused to be
          deposited irrevocably with the Trustee (or another trustee satisfying
          the requirements of Section 6.11 who shall agree to comply with, and
          shall be entitled to the benefits of,

                                      -29-
<PAGE>
          the provisions of Sections 4.3 through 4.9 inclusive and the last
          paragraph of Section 9.3 applicable to the Trustee, for purposes of
          such Sections also a "Trustee") as trust funds in trust for the
          purpose of making the payments referred to in clauses (x) and (y) of
          this Section 4.6(a), specifically pledged as security for, and
          dedicated solely to, the benefit of the Holders of such Securities,
          with instructions to the Trustee as to the application thereof, (A)
          money in an amount, or (B) if Securities of such series are not
          subject to repayment at the option of Holders, Government Obligations
          which through the payment of interest and principal in respect thereof
          in accordance with their terms will provide, not later than one day
          before the due date of any payment referred to in clause (x) or (y) of
          this Section 4.6(a), money in an amount or (C) a combination thereof
          in an amount, sufficient, in the opinion of a nationally recognized
          firm of independent certified public accountants expressed in a
          written certification thereof delivered to the Trustee, to pay and
          discharge, and which shall be applied by the Trustee to pay and
          discharge, (x) the principal of, premium, if any, and interest, if
          any, on such Securities on the Maturity of such principal or
          installment of principal or interest and (y) any mandatory sinking
          fund payments applicable to such Securities on the day on which such
          payments are due and payable in accordance with the terms of this
          Indenture and such Securities. Before such a deposit the Company may
          make arrangements satisfactory to the Trustee for the redemption of
          Securities at a future date or dates in accordance with Article 10
          which shall be given effect in applying the foregoing.

                    (b) Such defeasance or covenant defeasance shall not result
          in a breach or violation of, or constitute a Default or Event of
          Default under, this Indenture or result in a breach or violation of,
          or constitute a default under, any other material agreement or
          instrument to which the Company is a party or by which it is bound.

                    (c) No Default or Event of Default under Section 5.1(5) or
          5.1(6) with respect to such Securities shall have occurred and be
          continuing during the period commencing on the date of such deposit
          and ending on the 91st day after such date (it being understood that
          this condition shall not be deemed satisfied until the expiration of
          such period).

                    (d) In the case of an election under Section 4.4, the
          Company shall have delivered to the Trustee an Officers' Certificate
          and an Opinion of Counsel to the effect that (i) the Company has
          received from, or there has been published by, the Internal Revenue
          Service a ruling, or (ii) since the date of execution of this
          Indenture, there has been a change in the applicable Federal income
          tax law, in either case to the effect that, and based thereon such
          opinion shall confirm that, the Holders of such Securities will not
          recognize income, gain or loss for Federal income tax purposes as a
          result of such defeasance and will be subject to Federal income tax on
          the same amount and in the same manner and at the same times, as would
          have been the case if such deposit, defeasance and discharge had not
          occurred.

                                      -30-
<PAGE>
                    (e) In the case of an election under Section 4.5, the
          Company shall have delivered to the Trustee an Opinion of Counsel to
          the effect that the Holders of such Securities will not recognize
          income, gain or loss for Federal income tax purposes as a result of
          such covenant defeasance and will be subject to Federal income tax on
          the same amounts, in the same manner and at the same times as would
          have been the case if such covenant defeasance had not occurred.

                    (f) The Company shall have delivered to the Trustee an
          Officers' Certificate and an Opinion of Counsel, each stating that all
          conditions precedent to the defeasance under Section 4.4 or the
          covenant defeasance under Section 4.5 (as the case may be) have been
          complied with and an Opinion of Counsel to the effect that either (i)
          as a result of a deposit pursuant to subsection (a) above and the
          related exercise of the Company's option under Section 4.4 or Section
          4.5 (as the case may be), registration is not required under the
          Investment Company Act of 1940, as amended, by the Company, with
          respect to the trust funds representing such deposit or by the trustee
          for such trust funds or (ii) all necessary registrations under said
          act have been effected.

                    (g) Such defeasance or covenant defeasance shall be effected
          in compliance with any additional or substitute terms, conditions or
          limitations which may be imposed on the Company in connection
          therewith as contemplated by Section 3.1.

SECTION 4.7       DEPOSITED MONEY AND GOVERNMENT OBLIGATIONS TO BE HELD IN TRUST

         Subject to the provisions of the last paragraph of Section 9.3, all
money and Government Obligations (or other property as may be provided pursuant
to Section 3.1) (including the proceeds thereof) deposited with the Trustee
pursuant to Section 4.6 in respect of any Securities of any series shall be held
in trust and applied by the Trustee, in accordance with the provisions of such
Securities and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Holders of such Securities of all sums due and to
become due thereon in respect of principal, premium, if any, and interest, if
any, but such money need not be segregated from other funds except to the extent
required by law.

         The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the Government Obligations deposited
pursuant to Section 4.6 or the principal and interest received in respect
thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of Outstanding Securities.

SECTION 4.8       TRANSFERS AND DISTRIBUTION AT COMPANY REQUEST

         To the extent permitted by the Financial Accounting Standards Board
Statement of Financial Accounting Standards No. 76, as amended or interpreted by
the Financial Accounting Standards Board from time to time, or any successor
thereto ("Standard No. 76"),

                                      -31-
<PAGE>
or to the extent permitted by the Commission, the Trustee shall, from time to
time, take one or more of the following actions as specified in a Company
Request:

                    (a) Retransfer, reassign and deliver to the Company any
          securities deposited with the Trustee pursuant to Section 4.6(a),
          provided that the Company shall in substitution therefor,
          simultaneously transfer, assign and deliver to the Trustee other
          Government Obligations appropriate to satisfy the Company's
          obligations in respect of the relevant Securities; and

                    (b) The Trustee (and any Paying Agent) shall promptly pay to
          the Company upon Company Request any excess money or securities held
          by them at any time, including, without limitation, any assets
          deposited with the Trustee pursuant to Section 4.6(a) exceeding those
          necessary for the purposes of Section 4.6(a).

          The Trustee shall not take the actions described in subsections (a)
and (b) of this Section 4.8 unless it shall have first , at the Company's
expense, a written report of a nationally recognized independent public
accounting firm selected by the Company, (i) expressing their opinion that the
contemplated action is permitted by Standard No. 76 or the Commission, for
transactions accounted for as extinguishment of debt under the circumstances
described in paragraph 3.c of Standard No. 76 or any successor provision and
(ii) verifying the accuracy, after giving effect to such action or actions, of
the computations which demonstrate that the amounts remaining to be earned on
the Government Obligations deposited with the Trustee pursuant to Section 4.6(a)
will be sufficient for purposes of Section 4.6(a).

                                    ARTICLE 5

                              DEFAULTS AND REMEDIES

SECTION 5.1       EVENTS OF DEFAULT

         An "Event of Default" occurs with respect to the Securities of any
series if (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):

                    (1) the Company defaults in the payment of interest on any
          Security of that series or any additional amount payable with respect
          to any Security of that series as specified pursuant to Section
          3.1(b)(14) when the same becomes due and payable and such default
          continues for a period of 30 days;

                    (2) the Company defaults in the payment of the principal of
          or any premium on any Security of that series when the same becomes
          due and payable at its Maturity or on redemption or otherwise, or in
          the payment of a mandatory sinking fund payment when and as due by the
          terms of the Securities of that series;

                                      -32-
<PAGE>
                  (3) the Company defaults in the performance of, or breaches,
         any covenant or warranty of the Company in this Indenture with respect
         to any Security of that series (other than a covenant or warranty a
         default in whose performance or whose breach is elsewhere in this
         Section specifically dealt with), and such default or breach continues
         for a period of 60 days after there has been given, by registered or
         certified mail, to the Company by the Trustee or to the Company and the
         Trustee by the Holders of at least 25% in principal amount of the
         Outstanding Securities of that series, a written notice specifying such
         default or breach and requiring it to be remedied and stating that such
         notice is a "Notice of Default" hereunder;

                    (4) the Company pursuant to or within the meaning of any
          Bankruptcy Law (A) commences a voluntary case, (B) consents to the
          entry of an order for relief against it in an involuntary case, (C)
          consents to the appointment of a Custodian of it or for all or
          substantially all of its property, or (D) makes a general assignment
          for the benefit of its creditors;

                    (5) a court of competent jurisdiction enters an order or
          decree under any Bankruptcy Law that (A) is for relief against the
          Company in an involuntary case, (B) appoints a Custodian of the
          Company or for all or substantially all of its property, or (C) orders
          the liquidation of the Company; and the order or decree remains
          unstayed and in effect for 90 consecutive days; or

                    (6) any other Event of Default provided as contemplated by
          Section 3.1 with respect to Securities of that series.

                    The term "Bankruptcy Law" means Title 11, U.S. Code, or any
similar federal or state law for the relief of debtors. The term "Custodian"
means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.

SECTION 5.2       ACCELERATION, RESCISSION AND ANNULMENT

         If an Event of Default with respect to the Securities of any series at
the time Outstanding occurs and is continuing, the Trustee or the Holders of at
least 25% in aggregate principal amount of all of the outstanding Securities of
that series, by written notice to the Company (and, if given by the Holders, to
the Trustee), may declare the principal (or, if the Securities of that series
are Original Issue Discount Securities or Indexed Securities, such portion of
the principal amount as may be specified in the terms of that series) of all the
Securities of that series to be due and payable and upon any such declaration
such principal (or, in the case of original Issue Discount Securities or Indexed
Securities, such specified amount) shall be immediately due and payable.

         At any time after such a declaration of acceleration with respect to
Securities of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Article provided, the Holders of a majority in aggregate principal amount of the
outstanding Securities of that series, by written notice to the

                                      -33-
<PAGE>
Trustee, may rescind and annul such declaration and its consequences if all
existing Defaults and Events of Default with respect to Securities of that
series, other than the nonpayment of the principal of Securities of that series
which have become due solely by such declaration of acceleration, have been
cured or waived as provided in Section 5.7. No such rescission shall affect any
subsequent default or impair any right consequent thereon.

SECTION 5.3      COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE

         The Company covenants that if

                    (1) default is made in the payment of any interest on any
          Security when such interest becomes due and payable and such default
          continues for a period of 30 days, or

                    (2) default is made in the payment of the principal of (or
          premium, if any, on) any Security at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal, premium, if any, and interest and, to the extent that
payment of such interest shall be legally enforceable, interest on any overdue
principal, premium, if any, and on any overdue interest, at the rate or rates
prescribed therefor in such Securities, and, in addition thereto, 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 Trustee, its agents and counsel.

         If an Event of Default with respect to Securities of any series occurs
and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Securities of such series by
such appropriate judicial proceedings as the Trustee shall deem most effectual
to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy.

SECTION 5.4       TRUSTEE MAY FILE PROOFS OF CLAIM

         The Trustee may file such proofs of claim and other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee and
the Holders of Securities allowed in any judicial proceedings relating to the
Company, its creditors or its property.

SECTION 5.5       TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES

         All rights of action and claims under this Indenture or the Securities
may be prosecuted and enforced by the Trustee without the possession of any of
the Securities or the production thereof in any proceeding relating thereto.

                                      -34-
<PAGE>
SECTION 5.6       DELAY OR OMISSION NOT WAIVER

         No delay or omission by the Trustee or any Holder of any Securities to
exercise any right or remedy accruing upon an Event of Default shall impair any
such right or remedy or constitute a waiver of or acquiescence in any such Event
of Default.

SECTION 5.7       WAIVER OF PAST DEFAULTS

         The Holders of a majority in aggregate principal amount of Outstanding
Securities of any series by notice to the Trustee may waive on behalf of the
Holders of all Securities of such series a past Default or Event of Default with
respect to that series and its consequences except (i) a Default or Event of
Default in the payment of the principal of, premium, if any, or interest on any
Security of such series or (ii) in respect of a covenant or provision hereof
which pursuant to Section 8.2 cannot be amended or modified without the consent
of the Holder of each outstanding Security of such series adversely affected.
Upon any such waiver, such Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured, for every purpose
of this Indenture.

SECTION 5.8       CONTROL BY MAJORITY

         The Holders of a majority in aggregate principal amount of the
Outstanding Securities of each series affected (with each such series voting as
a class) shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee or exercising any trust
or power conferred on it with respect to Securities of that series; provided,
however, that (i) the Trustee may refuse to follow any direction that conflicts
with law or this Indenture, (ii) the Trustee may refuse to follow any direction
that is unduly prejudicial to the rights of the Holders of Securities of such
series not consenting, or that would in the good-faith judgment of the Trustee
have a substantial likelihood of involving the Trustee in personal liability and
(iii) the Trustee may take any other action deemed proper by the Trustee which
is not inconsistent with such direction.

SECTION 5.9       LIMITATION ON SUITS BY HOLDERS

         No Holder of any Security of any series shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture,
or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless:

                    (1) the Holder has previously given written notice to the
          Trustee of a continuing Event of Default with respect to the
          Securities of that series;

                    (2) the Holders of at least 25% in aggregate principal
          amount of the Outstanding Securities of that series have made a
          written request to the Trustee to institute proceedings in respect of
          such Event of Default in its own name as Trustee hereunder;

                                      -35-
<PAGE>
                    (3) such Holder or Holders have offered to the Trustee
          indemnity satisfactory to the Trustee against any loss, liability or
          expense to be, or which may be, incurred by the Trustee in pursuing
          the remedy;

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

                    (5) during such 60-day period, the Holders of a majority in
          aggregate principal amount of the Outstanding Securities of that
          series has not given to the Trustee a direction inconsistent with such
          written request.

          No one or more Holders shall have any right in any manner whatever by
virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other of such Holders, or to obtain or to seek to
obtain priority or preference over any other of such Holders or to enforce any
right under this Indenture, except in the manner herein provided and for the
equal and ratable benefit of all of such Holders.

SECTION 5.10      RIGHTS OF HOLDERS TO RECEIVE PAYMENT

          Notwithstanding any other provision of this Indenture, the right of
any Holder of a Security to receive payment of principal of, premium, if any,
and, subject to Section 3.7, interest on the Security, on or after the
respective due dates expressed in the Security (or, in case of redemption, on
the redemption dates), or, subject to Section 5.9, to bring suit for the
enforcement of any such payment on or after such respective dates, shall not be
impaired or affected without the consent of such Holder.

SECTION 5.11      APPLICATION OF MONEY COLLECTED

          If the Trustee collects any money pursuant to this Article, it shall
pay out the money in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal,
premium, if any, or interest, upon presentation of the Securities and the
notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

                  First: to the Trustee for amounts due under Section 6.9;

                  Second: to Holders of Securities in respect of which or for
         the benefit of which such money has been collected for amounts due and
         unpaid on such Securities for principal of, premium, if any, and
         interest, ratably, without preference or priority of any kind,
         according to the amounts due and payable on such Securities for
         principal, premium, if any, and interest, respectively; and

                  Third: to the Company.

                                      -36-
<PAGE>
SECTION 5.12      RESTORATION OF RIGHTS AND REMEDIES

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

SECTION 5.13      RIGHTS AND REMEDIES CUMULATIVE

         Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities in the last paragraph of
Section 3.6, no right or remedy herein conferred upon or reserved to the Trustee
or the Holders is intended to be exclusive of any other right or remedy, and
every right and remedy shall, to the extent permitted by law, be cumulative and
in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

                                    ARTICLE 6

                                   THE TRUSTEE

SECTION 6.1       CERTAIN DUTIES AND RESPONSIBILITIES

         (a)      Except during the continuance of an Event of Default,

                  (1) the 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 Trustee; and

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

         (b) In case an Event of Default has occurred and is continuing with
respect to the Securities of any series, the Trustee shall exercise such of the
rights and powers vested in it by this Indenture with respect to the Securities
of such series, 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
his own affairs.

                                      -37-
<PAGE>
         (c) No provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act, or its own willful misconduct, except that:

                  (1) this subsection shall not be construed to limit the effect
         of subsection (a) of this Section;

                  (2) the Trustee shall not be liable for any error of judgment
         made in good faith by a Responsible Officer, unless it shall be proved
         that the Trustee was negligent in ascertaining the pertinent facts; and

                  (3) the Trustee shall not be liable with respect to any action
         taken or omitted to be taken by it in good faith in accordance with the
         direction of the Holders of a majority in principal amount of the
         Outstanding Securities of any series relating to the time, method and
         place of conducting any proceeding for any remedy available to the
         Trustee, or exercising any trust or power conferred upon the Trustee,
         under this Indenture with respect to the Securities of such series.

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

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

SECTION 6.2       RIGHTS OF TRUSTEE

         Subject to the provisions of the Trust Indenture Act:

                  (a) The Trustee may conclusively rely and shall be protected
         in acting or refraining from acting upon any resolution, certificate,
         statement, instrument, opinion, report, notice, request, direction,
         consent, order, bond, debenture, note or other paper or document
         believed by it to be genuine and to have been signed or presented by
         the proper party or parties.

                  (b) Any request or direction of the Company mentioned herein
         shall be sufficiently evidenced by a Company Request or Company Order
         (other than delivery of any Security to the Trustee for authentication
         and delivery pursuant to Section 3.3, which shall be sufficiently
         evidenced as provided therein) and any resolution of the Board of
         Directors may be sufficiently evidenced by a Board Resolution.

                  (c) Whenever in the administration of this Indenture the
         Trustee shall deem it desirable that a matter be proved or established
         prior to taking, suffering or omitting

                                      -38-
<PAGE>
         any action hereunder, the Trustee (unless other evidence be herein
         specifically prescribed) may, in the absence of bad faith on its part,
         conclusively rely upon an Officers' Certificate.

                  (d) The Trustee may consult with counsel of its selection 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.

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

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

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

                  (h) The Trustee shall not be liable for any action it takes or
         omits to take in good faith which it believes to be authorized or
         within its rights or powers.

                  (i) The Trustee shall not be required 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 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.

                  (j) The Trustee shall not be deemed to have notice of any
         Default or Event of Default unless a Responsible Officer of the Trustee
         has actual knowledge thereof or unless written notice of any event
         which is in fact such a default is received by the Trustee at the
         Corporate Trust Office of the Trustee, and such notice references the
         Securities and this Indenture.

                  (k) The rights, privileges, protections, immunities and
         benefits given to the Trustee, including, without limitation, its right
         to be indemnified, are extended to, and

                                      -39-
<PAGE>
         shall be enforceable by, the Trustee in each of its capacities
         hereunder, and each agent, custodian and other Person employed to act
         hereunder.

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

SECTION 6.3       TRUSTEE MAY HOLD SECURITIES

         The Trustee, any Paying Agent, any Registrar or any other agent of the
Company, in its individual or any other capacity, may become the owner or
pledgee of Securities and, subject to Sections 310(b) and 311 of the Trust
Indenture Act, may otherwise deal with the Company, an Affiliate or Subsidiary
with the same rights it would have if it were not Trustee, Paying Agent,
Registrar or such other agent.

SECTION 6.4       MONEY HELD IN TRUST

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

SECTION 6.5       TRUSTEE'S DISCLAIMER

         The recitals contained herein and in the Securities, except the
Trustee's certificate of authentication, shall be taken as the statements of the
Company, and the Trustee assumes no responsibility for their correctness. The
Trustee makes no representation as to the validity or adequacy of this Indenture
or the Securities. The Trustee shall not be accountable for the Company's use of
the proceeds from the Securities or for monies paid over to the Company pursuant
to the Indenture.

SECTION 6.6       NOTICE OF DEFAULTS

         If a Default occurs and is continuing with respect to the Securities of
any series and if it is known to the Trustee, the Trustee shall, within 60 days
after it occurs, transmit, in the manner and to the extent provided in Section
313(c) of the Trust Indenture Act (and, at the Company's expense, shall cause to
be published at least once in an Authorized Newspaper in The City of New York),
notice of all uncured Defaults known to it; provided, however, that, except in
the case of a Default in payment on the Securities of any series, the Trustee
may withhold the notice if and so long as the board of directors, the executive
committee or a committee of its Responsible Officers in good faith determines
that withholding such notice is in the interests of Holders of Securities of
that series; provided further that, in the case of any default or breach of the
character specified in Section 5.1(3)

                                      -40-
<PAGE>
with respect to the Securities of such series, no such notice to Holders shall
be given until at least 60 days after the occurrence thereof.

SECTION 6.7       REPORTS BY TRUSTEE TO HOLDERS

         Within 60 days after each May 15 of each year commencing with the first
May 15 after the first issuance of Securities pursuant to this Indenture, the
Trustee shall transmit by mail to all Holders of Securities as provided in
Section 313(c) of the Trust Indenture Act a brief report dated as of such May 15
if required by Section 313(a) of the Trust Indenture Act. The Trustee also shall
comply with Section 313(b) and (d) of the Trust Indenture Act, if applicable.

SECTION 6.8       SECURITYHOLDER LISTS

         The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Holders of Securities of each series. If the Trustee is not the Registrar, the
Company shall furnish to the Trustee semiannually on or before the last day of
June and December in each year, and at such other times as the Trustee may
request in writing, a list, in such form and as of such date as the Trustee may
reasonably require, containing all the information in the possession of the
Registrar, the Company or any of its Paying Agents other than the Trustee as to
the names and addresses of Holders of Securities of each such series.

SECTION 6.9       COMPENSATION AND INDEMNITY

         (a) The Company shall pay to the Trustee from time to time such
compensation as shall be agreed between the Company and the Trustee in writing
for all services rendered by it hereunder. The Trustee's compensation shall not
be limited by any law on compensation of a trustee of an express trust. The
Company shall reimburse the Trustee upon request for all reasonable
out-of-pocket expenses incurred by it in connection with the performance of its
duties under this Indenture, except any such expense as may be attributable to
its negligence or bad faith. Such expenses shall include the reasonable
compensation and expenses of the Trustee's agents and counsel.

         (b) The Company shall indemnify the Trustee, and any predecessor
Trustee, for, and hold it harmless against, any loss, liability or expense
incurred by it without negligence or bad faith on its part arising out of or in
connection with its acceptance or administration of the trust or trusts
hereunder. The Trustee shall notify the Company promptly of any claim for which
it may seek indemnity. The Company shall defend the claim and the Trustee shall
cooperate in the defense. The Trustee may have separate counsel and the Company
shall pay the reasonable fees and expenses of such counsel. The Company need not
pay for any settlement made without its consent.

         (c) The Company need not reimburse any expense or indemnify against any
loss or liability incurred by the Trustee through its negligence or bad faith.

                                      -41-
<PAGE>
         (d) To secure the payment obligations of the Company pursuant to this
Section, the Trustee shall have a lien prior to the Securities of any series on
all money or property held or collected by the Trustee, except that held in
trust to pay principal, premium, if any, and interest on particular Securities.

         (e) when the Trustee incurs expenses or renders services in connection
with an Event of Default specified in Section 5.1(5) or Section 5.1(6), the
expenses (including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable Federal or state bankruptcy, insolvency or
other similar law.

         (f) The provisions of this Section shall survive the termination of
this Indenture.

SECTION 6.10      REPLACEMENT OF TRUSTEE

         (a) The resignation or removal of the Trustee and the appointment of a
successor Trustee shall become effective only upon the successor Trustee's
acceptance of appointment as provided in Section 6.11.

         (b) The Trustee may resign at any time with respect to the Securities
of any series by giving written notice thereof to the Company. If the instrument
of acceptance by a successor Trustee required by Section 6.11 shall not have
been delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities or such series.

         (c) The Holders of a majority in aggregate principal amount of the
Outstanding Securities of any series may remove the Trustee with respect to that
series by so notifying the Trustee and the Company and may appoint a successor
Trustee for such series with the Company's consent.

         (d)      If at any time:

                  (1) the Trustee fails to comply with Section 310(b) of the
         Trust Indenture Act after written request therefor by the Company or by
         any Holder who has been a bona fide Holder of a Security for at least
         six months; or

                  (2) the Trustee shall cease to be eligible under Section
         310(a) of the Trust Indenture Act and shall fail to resign after
         written request therefor by the Company or by any Holder of a Security
         who has been a bona fide Holder of a Security for at least six months;
         or

                  (3) the Trustee becomes incapable of acting, is adjudged a
         bankrupt or an insolvent or a receiver or public officer takes charge
         of the Trustee or its property or affairs for the purpose of
         rehabilitation, conservation or liquidation, then, in any such case,
         (i) the Company by or pursuant to a Board Resolution may remove the
         Trustee

                                      -42-
<PAGE>
         with respect to all Securities, or (ii) subject to Section 315(e) of
         the Trust Indenture Act, any Holder who has been a bona fide Holder of
         a Security for at least six months may, on behalf of himself and all
         other similarly situated, petition any court of competent jurisdiction
         for the removal of the Trustee with respect to all Securities and the
         appointment of a successor Trustee or Trustees.

         (e) If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, with respect to Securities of one or more
series, the Company, by or pursuant to Board Resolution, shall promptly appoint
a successor Trustee with respect to the Securities of that or those series (it
being understood that any such successor Trustee may be appointed with respect
to the Securities of one or more or all of such series and that at any time
there shall be only one Trustee with respect to the Securities of any particular
series) and shall comply with the applicable requirements of Section 6.11. If,
within one year after such resignation, removal or incapability, or the
occurrence of such vacancy, a successor Trustee with respect to the Securities
of any series shall be appointed by Act of the Holders of a majority in
principal amount of the Outstanding Securities of such series delivered to the
Company and the retiring Trustee, the successor Trustee so appointed shall,
forthwith upon its acceptance of such appointment in accordance with the
applicable requirements of Section 6.11, become the successor Trustee with
respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company. If no successor Trustee with respect
to the Securities of any series shall have been so appointed by the Company or
the Holders and accepted appointment in the manner required by Section 6.11, any
Holder who has been a bona fide Holder of a Security of such series for at least
six months may, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the appointment of a successor Trustee
with respect to the Securities of such series.

SECTION 6.11      ACCEPTANCE OF APPOINTMENT BY SUCCESSOR

         (a) In case of the appointment hereunder of a successor Trustee with
respect to all Securities, every such successor Trustee shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an instrument
accepting such appointment. Thereupon, the resignation or removal of the
retiring Trustee shall become effective, and the successor Trustee, without
further act, deed or conveyance, shall become vested with all the rights, powers
and duties of the retiring Trustee; but, on the request of the Company or the
successor Trustee, such retiring Trustee shall, upon payment of its charges,
execute and deliver an instrument transferring to such successor Trustee all the
rights, powers and trusts of the retiring Trustee and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder.

         (b) In case of the appointment hereunder of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and such successor Trustee shall execute and deliver an
indenture supplemental hereto wherein such successor Trustee shall accept such
appointment and which (i) shall contain such provisions as shall be necessary or
desirable to transfer and confirm to, and to vest in, such successor

                                      -43-
<PAGE>
Trustee all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series to which the appointment of
such successor Trustee relates, (ii) if the retiring Trustee is not retiring
with respect to all Securities, shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
as to which the retiring Trustee is not retiring shall continue to be vested in
the retiring Trustee, and (iii) shall add to or change any of the provisions of
this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust and that each such
Trustee shall be trustee of a trust or trusts hereunder separate and apart from
any trust or trusts hereunder administered by any other such Trustee and upon
the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
to which the appointment of such successor Trustee relates; but, on request of
the Company or any successor Trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.

         (c) Upon request of any such successor Trustee, the Company shall
execute any and all instruments for more fully and certainly vesting in and
confirming to such successor Trustee all such rights, powers and trusts referred
to in paragraph (a) or (b) of this Section, as the case may be.

         (d) No successor Trustee shall accept its appointment unless at the
time of such acceptance such successor Trustee shall be qualified and eligible
under the Trust Indenture Act.

         (e) The Company shall give notice of each resignation and each removal
of the Trustee with respect to the Securities of any series and each appointment
of a successor Trustee with respect to the Securities of any series in the
manner provided for notices to the Holders of Securities in Section 1.6 and by
publishing notice of such event once in an Authorized Newspaper in the City of
New York. Each notice shall include the name of the successor Trustee with
respect to the securities of such series and the address of its Corporate Trust
office.

SECTION 6.12      ELIGIBILITY; DISQUALIFICATION

         There shall at all times be a Trustee hereunder which shall be eligible
to act as Trustee under Section 310(a)(1) of the Trust Indenture Act and shall
have a combined capital and surplus of at least $100 million. If such
corporation publishes reports of condition at least annually, pursuant to law or
the requirements of Federal, State Territorial or District of Columbia
supervising or examining authority, then for the purposes of this Section, the

                                      -44-
<PAGE>
combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition
so published. If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in
the manner and with the effect hereinafter specified in this Article.

SECTION 6.13      MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS

         Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all the corporate trust business
of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Securities shall have been authenticated,
but not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee had itself authenticated such Securities.

SECTION 6.14      APPOINTMENT OF AUTHENTICATING AGENT

         The Trustee may appoint an Authenticating Agent or Agents with respect
to one or more series of Securities which shall be authorized to act on behalf
of the Trustee to authenticate Securities of such series issued upon original
issue exchange, registration of transfer or partial redemption thereof, and
Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder. Any such appointment shall be evidenced by an instrument in
writing signed by a Responsible Officer of the Trustee, a copy of which
instrument shall be promptly furnished to the Company. Wherever reference is
made in this Indenture to the authenticating and delivery of Securities by the
Trustee or the Trustee's certificate of authentication, such reference shall be
deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and, except as may otherwise be provided pursuant to
Section 3.1, shall at all times be a bank or trust company or corporation
organized and doing business and in good standing under the laws of the United
States of America or of any State or the District of Columbia, authorized under
such laws to act as Authenticating Agent, having a combined capital and surplus
of not less than $10 million and subject to supervision or examination by
Federal or State authorities. If such Authenticating Agent publishes reports of
condition at least annually, pursuant to law or the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such Authenticating Agent shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time an Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section,
such

                                      -45-
<PAGE>
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.

         Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency or
corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided, such corporation shall be otherwise eligible
under this Section, without the execution or filing of any paper or further act
on the part of the Trustee or the Authenticating Agent.

         An Authenticating Agent for any series of Securities may at any time
resign by giving written notice of resignation to the Trustee for such series
and to the Company. The Trustee for any series of Securities may at any time
terminate the agency of an Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee for such series may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall give
notice of such appointment to all Holders of Securities of the series with
respect to which such Authenticating Agent will serve in the manner set forth in
Section 1.6. 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 herein. No successor Authenticating Agent shall be
appointed unless eligible under the provisions of this Section.

         The Company agrees to pay to each Authenticating Agent from time to
time reasonable compensation, including reimbursement of its reasonable expenses
for its services under this Section.

         If an appointment with respect to one or more series is made pursuant
to this Section, the Securities of such series may have endorsed thereon, in
addition to or in lieu of the Trustee's certificate of authentication, an
alternate certificate of authentication substantially in the following form:

         This is one of the Securities of a series issued under the
within-mentioned Indenture.

                                      -46-
<PAGE>

         Dated:__________            _________________________________,
                                                as Trustee

                                     By
                                         -----------------------------------
                                               as Authenticating Agent

                                     By
                                         -----------------------------------
                                                Authorized Officer

SECTION 6.15 TRUSTEE'S APPLICATION FOR INSTRUCTIONS FROM THE COMPANY

      Any application by the Trustee for written instructions from the Company
may, at the option of the Trustee, set forth in writing any action proposed to
be taken or omitted by the Trustee under this Indenture and the date on and/or
after which such action shall be taken or such omission shall be effective. The
Trustee shall not be liable for any action taken by, or omission of, the Trustee
in accordance with a proposal included in such application on or after the date
specified in such application (which date shall not be less than fifteen
Business Days after the date any officer of the Company actually receives such
application, unless any such officer shall have consented in writing to any
earlier date) unless prior to taking any such action (or the effective date in
the case of an omission), the Trustee shall have received written instructions
in response to such application specifying the action to be taken or omitted.

                                    ARTICLE 7

                  CONSOLIDATION, MERGER OR SALE BY THE COMPANY

SECTION 7.1 CONSOLIDATION, MERGER OR SALE OF ASSETS PERMITTED

      The Company may merge or consolidate with or into any other corporation or
sell, convey, transfer, lease or otherwise dispose of all or substantially all
of its assets to any person, firm or corporation, if (i) (A) in the case of a
merger or consolidation, the Company is the surviving corporation or (B) in the
case of a merger or consolidation where the Company is not the surviving
corporation and in the case of any such sale, conveyance or other disposition,
the successor or acquiring corporation is a corporation organized and existing
under the laws of the United States or a State thereof and such corporation
expressly assumes by supplemental indenture all of the obligations of the
Company under the Securities and under this Indenture, (ii) immediately
thereafter, giving effect to such merger or consolidation, or such sale,
conveyance, transfer or other disposition, no Default or Event of Default shall
have occurred and be continuing and (iii) the company has delivered to the
Trustee an Officers' Certificate and an Opinion of Counsel each stating that
such merger or consolidation, or such sale, conveyance, transfer or other
disposition, complies with this Article and that all conditions precedent herein
provided for relating to such transaction have

                                      -47-
<PAGE>
been complied with. In the event of the assumption by a successor corporation of
the obligations of the Company as provided in clause (i)(B) of the immediately
preceding sentence, such successor corporation shall succeed to and be
substituted for the Company hereunder and under the Securities and all such
obligations of the Company shall terminate.

SECTION 7.2 NO LIMITATIONS

      Nothing contained in this Indenture or in any of the Securities shall
prevent the Company from merging into itself any other corporation or entity
(whether or not affiliated with the Company) or acquiring by purchase or
otherwise all or any part of the property of any other corporation or entity
(whether or not affiliated with the Company).

                                    ARTICLE 8

                             SUPPLEMENTAL INDENTURES

SECTION 8.1 SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS

      Without the consent of any Holders, the Company, when authorized by a
Board Resolution, and the Trustee, at any time and from time to time, may enter
into indentures supplemental hereto, in form reasonably satisfactory to the
Trustee, for any of the following purposes:

            (1) to evidence the succession of another corporation to the Company
      and the assumption by any such successor of the covenants of the Company
      herein and in the Securities; or

            (2) to add to the covenants of the Company for the benefit of the
      Holders of all or any series of Securities (and if such covenants are to
      be for the benefit of less than all series of Securities, stating that
      such covenants are expressly being included solely for the benefit of such
      series) or to surrender any right or power herein conferred upon the
      Company; or

            (3) to add any additional Events of Default with respect to all or
      any series of Securities; or

            (4) to add to or change any of the provisions of this Indenture to
      such extent as shall be necessary to facilitate the issuance of Securities
      in bearer form, registrable or not registrable as to principal, and with
      or without interest coupons, or to facilitate the issuance of Securities
      in global form; or

            (5) to add to, change or eliminate any of the provisions of this
      Indenture, provided that any such addition, change or elimination shall
      become effective only

                                      -48-
<PAGE>
      when there is no Security Outstanding of any series created prior to the
      execution of such supplemental indenture which is entitled to the benefit
      of such provision; or

            (6) to secure the Securities; or

            (7) to establish the form or terms of Securities of any series as
      permitted by Sections 2.1 and 3.2; or

            (8) to evidence and provide for the acceptance of appointment
      hereunder by a successor Trustee with respect to the Securities of one or
      more series and to add to or change any of the provisions of this
      Indenture as shall be necessary to provide for or facilitate the
      administration of the trusts hereunder by more than one Trustee, pursuant
      to the requirements of Section 6.10; or

            (9) to correct or supplement any provision herein which may be
      inconsistent with any other provision herein, to cure any ambiguity or
      correct any mistake or to make any other provisions with respect to
      matters or questions arising under this Indenture, provided such action
      shall not adversely affect the interests of the Holders of Securities of
      any series in any material respect.

SECTION 8.2 WITH CONSENT OF HOLDERS

      With the written consent of the Holders of a majority of the aggregate
principal amount of the Outstanding Securities of each series adversely affected
by such supplemental indenture, the Company and the Trustee may enter into an
indenture or indentures supplemental hereto to add any provisions to or to
change or eliminate any provisions of this Indenture or of any other indenture
supplemental hereto or to modify the rights of the Holders of Securities of each
such series; provided, however, that without the consent of the Holder of each
Outstanding Security affected thereby, an amendment under this Section may not:

            (1) change the Stated Maturity of the principal of, or any
      installment of principal of or interest on, any Security, or reduce the
      principal amount thereof or the rate of interest thereon or any premium
      payable upon the redemption thereof, or reduce the amount of the principal
      of an Original Issue Discount Security that would be due and payable upon
      a declaration of acceleration of the Maturity thereof pursuant to Section
      5.2, or change the coin or currency in which, any Securities or any
      premium or the interest thereon is payable, or impair the right to
      institute suit for the enforcement of any such payment on or after the
      Stated Maturity thereof (or, in the case of redemption, on or after the
      Redemption Date);

            (2) reduce the percentage in principal amount of the Outstanding
      Securities of any series, the consent of whose Holders is required for any
      such supplemental indenture, or the consent of whose Holders is required
      for any waiver (of compliance with certain provisions of this Indenture or
      certain defaults hereunder and their consequences) provided for in this
      Indenture;

                                      -49-
<PAGE>
            (3) change any obligation of the Company to maintain an office or
      agency in the places and for the purposes specified in Section 9.2; or

            (4) make any change in Section 5.7 or this 8.2(a) except to increase
      any percentage or to provide that certain other provisions of this
      Indenture cannot be modified or waived with the consent of the Holders of
      each Outstanding Security affected thereby.

      A supplemental indenture that changes or eliminates any covenant or other
provision of this Indenture, which has expressly been included solely for the
benefit of one or more particular series of Securities, or that modifies the
rights of the Holders of Securities of such series with respect to such covenant
or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

      It is not necessary under this Section 8.2 for the Holders to consent to
the particular form of any proposed supplemental indenture, but it is sufficient
if they consent to the substance thereof.

SECTION 8.3 COMPLIANCE WITH TRUST INDENTURE ACT

      Every supplemental indenture executed pursuant to this Article shall
comply with the requirements of the Trust Indenture Act as then in effect.

SECTION 8.4 EXECUTION OF SUPPLEMENTAL INDENTURES

      In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modification thereby of
the trusts created by this Indenture, the Trustee shall be entitled to receive,
and shall be fully protected in relying upon, an Opinion of Counsel stating that
the execution of such supplemental indenture is authorized or permitted by this
Indenture. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.

SECTION 8.5 EFFECT OF SUPPLEMENTAL INDENTURES

      Upon the execution of any supplemental indenture under this article, 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 Securities theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.

SECTION 8.6 REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES

      Securities of any series authenticated and delivered after the execution
of any supplemental indenture pursuant to this Article may, and shall if
required by the Trustee, bear a notation in form approved by the Trustee as to
any matter provided for in such supplemental indenture. If the Company shall so
determine, new Securities of any series so modified as to

                                      -50-
<PAGE>
conform, in the opinion of the Trustee and the Company, to any such supplemental
indenture may be prepared and executed by the Company and authenticated and
delivered by the Trustee in exchange for Outstanding Securities.

                                    ARTICLE 9

                                    COVENANTS

SECTION 9.1 PAYMENT OF PRINCIPAL, PREMIUM, IF ANY, AND INTEREST

      The Company covenants and agrees for the benefit of the Holders of each
series of Securities that it will duly and punctually pay the principal of,
premium, if any, and interest on the Securities of that series in accordance
with the terms of the Securities of such series and this Indenture. An
installment of principal or interest shall be considered paid on the date it is
due if the Trustee or Paying Agent holds on that date money designated for and
sufficient to pay the installment.

SECTION 9.2 MAINTENANCE OF OFFICE OR AGENCY

      The Company will maintain in each Place of Payment for any series of
Securities an office or agency where Securities of that series may be presented
or surrendered for payment, where Securities of that series may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Company in respect of the Securities of that series and this Indenture
may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of any such office or agency. If at
any time the Company shall fail to maintain any such required office or agency
or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

      The Company may also from time to time designate one or more other offices
or agencies where the Securities of one or more series may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency
in each Place of Payment for Securities of any series for such purposes. The
Company will give prompt written notice to the Trustee of any such designation
or rescission and of any change in the location of any such other office or
agency.

      Unless otherwise specified as contemplated by Section 3.1, the Trustee
shall initially serve as Paying Agent.

                                      -51-
<PAGE>
SECTION 9.3 MONEY FOR SECURITIES TO BE HELD IN TRUST; UNCLAIMED MONEY

      If the Company shall at any time act as its own Paying Agent with respect
to any series of Securities, it will, on or before each due date of the
principal of, premium, if any, or interest on any of the Securities of that
series, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal, premium, if any, or interest so
becoming due until such sums shall be paid to such persons or otherwise disposed
of as herein provided and will promptly notify the Trustee in writing of its
action or failure so to act.

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

            (1) hold all sums held by it for the payment of the principal of,
      premium, if any, or interest on Securities of that series 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;

            (2) give the Trustee notice of any default by the Company (or any
      other obligor upon the Securities of that series) in the making of any
      payment of principal, premium, if any, or interest on the Securities; and

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

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

      Any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of any principal, premium or interest on
any Security of any series and remaining unclaimed for two years after such
principal, premium, if any, or interest has become due and payable shall be paid
to the Company on Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter, as
an unsecured general creditor, look only to the Company for payment thereof, and
all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to
be published once, in an Authorized Newspaper, or cause to be mailed to such
Holder, notice that such money remains

                                      -52-
<PAGE>
unclaimed and that, after a date specified therein, which shall not be less than
30 days from the date of such publication, any unclaimed balance of such money
then remaining will be repaid to the Company.

SECTION 9.4 CORPORATE EXISTENCE

      Subject to Article 7, the Company will at all times do or cause to be done
all things necessary to preserve and keep in full force and effect its corporate
existence and its rights and franchises; provided that nothing in this Section
9.4 shall prevent the abandonment or termination of any right or franchise of
the Company if, in the opinion of the Company, such abandonment or termination
is in the best interests of the Company and does not materially adversely affect
the ability of the Company to operate its business or to fulfill its obligations
hereunder.

SECTION 9.5 REPORTS BY THE COMPANY

      The Company covenants:

            (a) to file with the Trustee, within 15 days after the Company 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 Company may be required
      to file with the Commission pursuant to section 13 or section 15(d) of the
      Securities Exchange Act of 1934, as amended; or, if the Company is not
      required to file information, documents or reports pursuant to either of
      such sections, then to file with the Trustee and the Commission, in
      accordance with rules and regulations prescribed from time to time by the
      Commission, such of the supplementary and periodic information, documents
      and reports which may be required pursuant to section 13 of the Securities
      Exchange Act of 1934, as amended, in respect of a security listed and
      registered on a national securities exchange as may be prescribed from
      time to time in such rules and regulations;

            (b) to file with the Trustee and the Commission, in accordance with
      the rules and regulations prescribed from time to time by the Commission,
      such additional information, documents and reports with respect to
      compliance by the Company with the conditions and covenants provided for
      in this Indenture, as may be required from time to time by such rules and
      regulations; and

            (c) to transmit to all Holders of Securities, within 30 days after
      the filing thereof with the Trustee, in the manner and to the extent
      provided in section 313(c) of the Trust Indenture Act, such summaries of
      any information, documents and reports required to be filed by the Company
      pursuant to subsections (a) and (b) of this Section 9.5, as may be
      required by rules and regulations prescribed from time to time by the
      Commission.

                                      -53-
<PAGE>
            Delivery of such reports, information and documents to the Trustee
      is for informational purposes only and the Trustee's receipt of such shall
      not constitute constructive notice of any information contained therein or
      determinable from information contained therein, including the Company's
      compliance with any of its covenants hereunder (as to which the Trustee is
      entitled to rely exclusively on Officers' Certificates).

SECTION 9.6 ANNUAL REVIEW CERTIFICATE; NOTICE OF DEFAULT

      The Company covenants and agrees to deliver to the Trustee, within 120
days after the end of each fiscal year of the Company, a brief certificate from
the principal executive officer, principal financial officer, or principal
accounting officer as to his or her knowledge of the Company's compliance with
all conditions and covenants under this Indenture. For purposes of this Section
9.7, such compliance shall be determined without regard to any period of grace
or requirement of notice provided under this Indenture. The Company shall
promptly file with the Trustee written notice of occurrence of any Event of
Default, and in any event within 30 days of its becoming aware of any such Event
of Default.

SECTION 9.7 PROVISION OF FINANCIAL STATEMENTS

      If the Company is not required to file with the Commission periodic
reports and other information pursuant to section 13(a), 13(c) or 15(d) of the
Securities Exchange Act of 1934, the Company shall furnish without cost to each
Holder and file with the Trustee (i) within 135 days after the end of each
fiscal year, annual reports containing the information required to be contained
in Items 1, 2, 3, 5, 6, 7, 8 and 9 of Form 10-K promulgated under the Securities
Exchange Act of 1934, or substantially the same information required to be
contained in comparable items of any successor form, (ii) within 60 days after
the end of each of the first three fiscal quarters of each fiscal year,
quarterly reports containing the information required to be contained in Form
10-Q promulgated under the Securities Exchange Act of 1934, or substantially the
same information required to be contained in any successor form and (iii)
promptly from the time after the occurrence of an event required to be therein
reported, such other reports containing information required to be contained in
Form 8-K promulgated under the Securities Exchange Act of 1934, or substantially
the same information required to be contained in any successor form. The Company
shall also make such reports available to prospective purchasers of the
Securities, securities analysts and broker-dealers upon their request.

SECTION 9.8 LIMITATIONS ON LIENS

      The Company will not create, assume, incur or guarantee, and will not
permit any Restricted Subsidiary to create, assume, incur or guarantee, any
Secured Indebtedness without making provision whereby all the Securities shall
be secured equally and ratably with (or prior to) such Secured Indebtedness
(together with, if the Company shall so determine, any other Indebtedness of the
Company or such Restricted Subsidiary then existing or thereafter created which
is not subordinate to the Securities) so long as such Secured Indebtedness shall
be

                                      -54-
<PAGE>
outstanding unless such Secured Indebtedness, when added to (a) the aggregate
amount of all Secured Indebtedness then outstanding (not including in this
computation Secured Indebtedness if the Securities are secured equally and
ratably with (or prior to) such Secured Indebtedness and further not including
in this computation any Secured Indebtedness which is concurrently being
retired) and (b) the aggregate amount all Attributable Debt then outstanding
pursuant to Sale and Leaseback Transactions entered into by the Company after
__________, 200__, or entered into by a Restricted Subsidiary after __________,
200__, or, if later, the date on which it became a Restricted Subsidiary (not
including in this computation any Attributable Debt which is concurrently being
retired), would not exceed 15% of Consolidated Net Tangible Assets.

SECTION 9.9 LIMITATIONS ON SALES AND LEASEBACKS.

      The Company will not, and will not permit any Restricted Subsidiary to,
enter into any Sale and Leaseback Transaction unless (a) the sum of (i) the
Attributable Debt to be outstanding pursuant to such Sale and Leaseback
Transaction, (ii) all Attributable Debt then outstanding pursuant to all other
Sale and Leaseback Transactions entered into by the Company after __________,
200__, or, or entered into by a Restricted Subsidiary after __________, 200__,
or, if later, the date on which it became a Restricted Subsidiary and (iii) the
aggregate of all Secured Indebtedness then outstanding (not including in this
computation Secured Indebtedness if the Securities are secured equally and
ratably with (or prior to) such Secured Indebtedness) would not exceed 15% of
Consolidated Net Tangible Assets, or (b) an amount equal to the greater of (i)
the net proceeds to the Company or the Restricted Subsidiary of the sale of the
Principal Property sold and leased back pursuant to such Sale and Leaseback
Transaction and (ii) the amount of Attributable Debt to be outstanding pursuant
to such Sale and Leaseback Transaction is applied to the retirement of Funded
Debt of the Company or any Restricted Subsidiaries (other than Funded Debt which
is subordinate to the Securities or which is owing to the Company or any
Restricted Subsidiaries) within 180 days after the consummation of such Sale and
Leaseback Transaction.

                                   ARTICLE 10

                                   REDEMPTION

SECTION 10.1 APPLICABILITY OF ARTICLE

      Securities of any series which are redeemable before their Stated Maturity
shall be redeemable in accordance with their terms and (except as otherwise
specified as contemplated by Section 3.1 for Securities of any series) in
accordance with this Article.

SECTION 10.2 ELECTION TO REDEEM; NOTICE TO TRUSTEE

      The election of the Company to redeem any Securities shall be evidenced by
or pursuant to a Board Resolution or any Officers' Certificate. In the case of
any redemption at the election of the Company of less than all the Securities,
if any, of any series, the Company

                                      -55-
<PAGE>
shall, at least 45 days prior to the Redemption Date fixed by the Company
(unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee of such Redemption Date, of the principal amount of Securities of such
series to be redeemed and, if applicable, of the tenor of the Securities to be
redeemed. In the case of any redemption of Securities (i) prior to the
expiration of any restriction on such redemption provided in the terms of such
Securities or elsewhere in this Indenture or (ii) pursuant to an election of the
Company which is subject to a condition specified in the terms of such
Securities, the Company shall furnish the Trustee with an Officers' Certificate
evidencing compliance with such restriction or condition.

SECTION 10.3 SELECTION OF SECURITIES TO BE REDEEMED

      Unless otherwise specified as contemplated by Section 3.1, if less than
all the Securities of a series with the same original issue date, interest rate
and Stated Maturity are to be redeemed, the Trustee, not more than 45 days prior
to the redemption date, shall select the Securities of the series to be redeemed
in such manner as the Trustee shall deem fair and appropriate. The Trustee shall
make the selection from Securities of the series that are Outstanding and that
have not previously been called for redemption and may provide for the selection
for redemption of portions (equal to the minimum authorized denomination for
Securities of that series or any integral multiple thereof) of the principal
amount of Securities of such series of a denomination larger than the minimum
authorized denomination for Securities of that series. The Trustee shall
promptly notify the Company in writing of the Securities selected by the Trustee
for redemption and, in the case of any Securities selected for partial
redemption, the principal amount thereof to be redeemed.

      For purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Securities shall relate, in the case of
any Securities redeemed or to be redeemed only in part, to the portion of the
principal amount of such Securities which has been or is to be redeemed.

SECTION 10.4 NOTICE OF REDEMPTION

      Unless otherwise specified as contemplated by Section 3.1, notice of
redemption shall be given in the manner provided in Section 1.6 not less than 30
days nor more than 60 days prior to the Redemption Date to the Holders of the
Securities to be redeemed.

      All notices of redemption shall state:

            (1) the Redemption Date;

            (2) the Redemption Price;

                                      -56-
<PAGE>
            (3) if fewer than all the Outstanding Securities of a series are to
      be redeemed, the identification (and, in the case of partial redemption,
      the principal amounts) of the particular Security or Securities to be
      redeemed;

            (4) in case any Security is to be redeemed in part only, the notice
      which relates to such Security shall state that on and after the
      Redemption Date, upon surrender of such Security, the holder will receive,
      without a charge, a new Security or Securities of authorized denominations
      for the principal amount thereof remaining unredeemed;

            (5) the Place or Places of Payment where such Securities maturing
      after the Redemption Date, are to be surrendered for payment for the
      Redemption Price;

            (6) that Securities of the series called for redemption must be
      surrendered to the Paying Agent to collect the redemption price;

            (7) that, on the Redemption Date, the Redemption Price will become
      due and payable upon each such Security, or the portion thereof, to be
      redeemed and, if applicable, that interest thereon will cease to accrue on
      and after said date;

            (8) that the redemption is for a sinking fund, if such is the case;
      and

            (9) CUSIP number.

      Notice of redemption of Securities to be redeemed shall be given by the
Company or, at the Company's written request delivered at least 15 days prior to
the date such notice is to be given (unless a shorter period shall be acceptable
to the Trustee), by the Trustee in the name and at the expense of the Company.

SECTION 10.5 DEPOSIT OF REDEMPTION PRICE

      On or prior to 10:00 a.m., New York City Time, on any Redemption Date, the
Company shall deposit with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 9.3) an amount of money sufficient to pay on the Redemption
Date the Redemption Price of, and (unless the Redemption Date shall be an
Interest Payment Date) interest accrued to the Redemption Date on, all
Securities or portions thereof which are to be redeemed on that date.

      Unless any Security by its terms prohibits any sinking fund payment
obligation from being satisfied by delivering and crediting Securities
(including Securities redeemed otherwise than through a sinking fund), the
Company may deliver such Securities to the Trustee for crediting against such
payment obligation in accordance with the terms of such Securities and this
Indenture.

                                      -57-
<PAGE>
SECTION 10.6 SECURITIES PAYABLE ON REDEMPTION DATE

      Notice of redemption having been given as aforesaid, the Securities so to
be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest. Except as provided in
the next succeeding paragraph, upon surrender of any such Security for
redemption in accordance with said notice, such Security shall be paid by the
Company at the Redemption Price, together with accrued interest to the
Redemption Date; provided, however, that, unless otherwise specified as
contemplated by Section 3.1, installments of interest on Securities whose Stated
Maturity is prior to the Redemption Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 3.7.

      If any Security called for redemption shall not be so paid upon surrender
thereof for redemption, the principal (and premium, if any) shall, until paid,
bear interest from the Redemption Date at the rate prescribed therefor in the
Security.

SECTION 10.7 SECURITIES REDEEMED IN PART

      Upon surrender of a Security that is redeemed in part at any Place of
Payment therefor (with, if the Company or the Trustee so required, due
endorsement by, or a written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing), the Company shall execute and the Trustee shall
authenticate and deliver to the Holder of that Security, without service charge,
a new Security or Securities of the same series, the same form and the same
Maturity in any authorized denomination equal in aggregate principal amount to
the unredeemed portion of the principal of the Security surrendered.

                                   ARTICLE 11

                                  SINKING FUNDS

SECTION 11.1 APPLICABILITY OF ARTICLE

      The provisions of this Article shall be applicable to any sinking fund for
the retirement of Securities of a series except as otherwise specified as
contemplated by Section 3.1 for Securities of such series.

      The minimum amount of any sinking fund payment provided for by the terms
of Securities of any series is herein referred to as a "mandatory sinking fund
payment," and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an "optional sinking
fund payment." If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to

                                      -58-
<PAGE>
reduction as provided in Section 11.2. Each sinking fund payment shall be
applied to the redemption of Securities of any series as provided for by the
terms of Securities of such series.

SECTION 11.2 SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES

      The Company (i) may deliver Outstanding Securities of a series (other than
any previously called for redemption) and (ii) may apply as a credit Securities
of a series which have been redeemed either at the election of the Company
pursuant to the terms of such Securities or through the application of permitted
optional sinking fund payments pursuant to the terms of such Securities, in each
case in satisfaction of all or any part of any sinking fund payment with respect
to the Securities of such series required to be made pursuant to the terms of
such Securities as provided for by the terms of such series; provided that such
Securities have not been previously so credited. Such Securities shall be
received and credited for such purpose by the Trustee at the Redemption Price
specified in such Securities for redemption through operation of the sinking
fund and the amount of such sinking fund payment shall be reduced accordingly.

SECTION 11.3 REDEMPTION OF SECURITIES FOR SINKING FUND

      Not less than 60 days prior to each sinking fund payment date for any
series of Securities, the Company will deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing sinking fund payment for
that series pursuant to the terms of that series, the portion thereof, if any,
which is to be satisfied by payment of cash and the portion thereof, if any,
which is to be satisfied by delivering and crediting Securities of that series
pursuant to Section 11.2 and will also deliver to the Trustee any Securities to
be so delivered. Not less than 30 days before each such sinking fund payment
date, the Trustee shall select the Securities to be redeemed upon such sinking
fund payment date in the manner specified in Section 10.3 and cause notice of
the redemption thereof to be given in the name of and at the expense of the
Company in the manner provided in Section 10.4. Such notice having been duly
given, the redemption of such Securities shall be made upon the terms and in the
manner stated in Sections 10.6 and 10.7.

                                      -59-
<PAGE>
      This Indenture may be executed in any number of counterparts, each of
which shall be an original, but such counterparts shall together constitute but
one instrument.

      IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.

                                     ESTERLINE TECHNOLOGIES CORPORATION

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

____________________, TRUSTEE

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

                                      -60-
<PAGE>
                                                                       EXHIBIT A
                                                        FORM OF FACE OF SECURITY

      [If the Security is an Original Issue Discount Security, insert--FOR
PURPOSES OF SECTIONS 1273 AND 1275 OF THE UNITED STATES INTERNAL REVENUE CODE,
THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON THIS SECURITY IS % OF ITS PRINCIPAL
AMOUNT AND THE ISSUE DATE IS , 200 [, -- AND] THE YIELD TO MATURITY IS %. [THE
METHOD USED TO DETERMINE THE YIELD IS AND THE AMOUNT OF ORIGINAL ISSUE DISCOUNT
APPLICABLE TO THE SHORT ACCRUAL PERIOD OF , 200 TO , 200 IS % OF THE PRINCIPAL
AMOUNT OF THIS SECURITY.]]

                       ESTERLINE TECHNOLOGIES CORPORATION

                                                                 CUSIP:_________

$                                                                            No.

      ESTERLINE TECHNOLOGIES CORPORATION, a corporation duly organized and
existing under the laws of the State of Delaware (herein called the "Company,"
which term includes any successor corporation under the Indenture hereinafter
referred to), for value received, hereby promises to pay to

or registered assigns, the principal sum of          Dollars on        [If the
Security is to bear interest prior to Maturity, insert--, and to pay interest
thereon from      or     from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semiannually on      and      in
each year, commencing , [If the Security is to bear interest at a fixed rate,
insert--at the rate of   % per annum] [if the Security is to bear interest at an
adjustable rate, insert--at a rate per annum computed or determined in
accordance with the provisions below], until the principal hereof is paid or
made available for payment [If applicable, insert--, and (to the extent that the
payment of such interest shall be legally enforceable) at the rate of    % per
annum on any overdue principal and premium and on any overdue installment of
interest]. The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the      or      (whether or not a Business Day), as
the case may be, next preceding such Interest Payment Date. Any such interest
not so punctually paid or duly provided for will forthwith cease to be payable
to the Holder on such Regular Record Date and may either be paid to the Person
in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Securities of this series not less than 10 days prior to
such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Securities of
<PAGE>
this series may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture].

      [If the Security is not to bear interest prior to Maturity, insert--The
principal of this Security shall not bear interest except in the case of a
default in payment of principal upon acceleration or redemption or at the Stated
Maturity and in such case the overdue principal of this Security shall bear
interest at the rate of    % per annum (to the extent that the payment of such
interest shall be legally enforceable), which shall accrue from the date of such
default in payment to the date payment of such principal has been made or duly
provided for. Interest on any overdue principal shall be payable on demand. Any
such interest on any overdue principal that is not so paid on demand shall bear
interest at the rate of    % per annum (to the extent that the payment of such
interest shall be legally enforceable), which shall accrue from the date of such
demand for payment to the date payment of such interest has been made or duly
provided for, and such interest shall also be payable on demand.]

      Payment of the principal of (and premium, if any, on) and [if applicable,
insert--any such] interest on this Security will be made at the office or agency
of the Company maintained for that purpose in the City and State of New York in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts [if applicable,
insert--; provided, however, that at the option of the Company payment of
interest may be made by check mailed on or before the relevant Interest Payment
Date to the address of the Person entitled thereto as such address shall appear
in the Register].

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

      Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

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

      Dated:
                                    ESTERLINE TECHNOLOGIES CORPORATION

                                    By __________________________________

                                      -2-
<PAGE>

                                                     FORM OF REVERSE OF SECURITY

      This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities") issued and to be issued in one or more
series under an Indenture, dated as of ___________, 200__ (herein called the
"Indenture"), between the Company (which term includes any successor corporation
under the Indenture) and _________________________, as Trustee (herein called
the "Trustee," which term includes any successor trustee under the Indenture
with respect to the series of which this Security is a part), to which the
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Securities and of
the terms upon which the Securities are, and are to be, authenticated and
delivered. This Security is one of the series designated on the face hereof[,
limited in aggregate principal amount to $ ].

[If applicable, insert--The Securities of this series are subject to redemption
upon not less than 30 days' notice by mail, [if applicable, insert--(1) on
___________ in any year commencing with the year __________ and ending with the
year _________ at a Redemption Price equal to % of the principal amount and (2)]
at any time [on or after 200 ], as a whole or in part, at the election of the
Company, at the following Redemption Prices (expressed as percentages of the
principal amount): If redeemed [on or before ______, %, and if redeemed] during
the 12-month period beginning _________ of the years indicated,

       Year        Redemption Price         Year           Redemption Price

and thereafter at a Redemption Price equal to __% of the principal amount,
together in the case of any such redemption with accrued interest to the
Redemption Date, but interest installments whose Stated Maturity is on or prior
to such Redemption Date will be payable to the Holders of such Securities, or
one or more Predecessor Securities, of record at the close of business on the
relevant Regular Record Dates referred to on the face hereof, all as provided in
the Indenture.]

[If applicable, insert--The Securities of this series are subject to redemption
upon not less than 30 days' notice by mail, (1) on ___________ in any year
commencing with the year ____________ and ending with the year _________ through
operation of the sinking fund for this series at the Redemption Prices for
redemption through operation of the sinking fund (expressed as percentages of
the principal amount) set forth in the table below and (2) at any time [on or
after ____________], as a whole or in part, at the election of the Company, at
the Redemption Prices for redemption otherwise than through operation of the
sinking fund (expressed as percentages of the principal amount) set forth in the
table below: If redeemed

                                      -3-
<PAGE>
during the 12-month period beginning _____________ of the years indicated,

             Redemption Price for Redemption   Redemption Price for Redemption
                 Through Operation of the           Otherwise Than Through
   Year               Sinking Fund              Operation of the Sinking Fund

and thereafter at a Redemption Price equal to ____% of the principal amount,
together in the case of any such redemption (whether through operation of the
sinking fund or otherwise) with accrued interest to the Redemption Date, but
interest installments whose Stated Maturity is on or prior to such Redemption
Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant
Regular Record Dates referred to on the face hereof, all as provided in the
Indenture.]

      [Notwithstanding the foregoing, the Company may not, prior to __________,
redeem any Securities of this series as contemplated by [Clause (2) of] the
preceding paragraph as a part of, or in anticipation of, any refunding operation
by the application, directly or indirectly, of moneys borrowed having an
interest cost to the Company (calculated in accordance with generally accepted
financial practice) of less than ___% per annum.]

      [The sinking fund for this series provides for the redemption on
__________ in each year beginning with the year _______________ and ending with
the year ____________ of [not less than] $____________ [("mandatory sinking
fund")] and not more than $____________ aggregate principal amount of Securities
of this series. [Securities of this series acquired or redeemed by the Company
otherwise than through [mandatory] sinking fund payments may be credited against
subsequent [mandatory] sinking fund payments otherwise required to be made in
the [describe order] order in which they become due.]]

      [In the event of redemption of this Security in part only, a new Security
or Securities of this series for the unredeemed portion hereof will be issued in
the name of the Holder hereof upon the cancellation hereof.]

      [If applicable, insert--The Securities of this series are subject to the
covenant defeasance provisions set forth in Article Four of the Indenture.]

      [If the Security is not an Original Issue Discount Security, insert--If an
Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due
and payable in the manner and with the effect provided in the Indenture.]

      [If the Security is an Original Issue Discount Security, insert--If an
Event of Default with respect to Securities of this series shall occur and be
continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the

                                      -4-
<PAGE>
effect provided in the Indenture. Such amount shall be equal to--insert formula
for determining the amount. Upon payment (i) of the amount of principal so
declared due and payable and (ii) of interest on any overdue principal and
overdue interest (in each case to the extent that the payment of such interest
shall be legally enforceable), all the Company's obligations in respect of the
payment of the principal of and interest, if any, on the Securities of this
series shall terminate.]

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Outstanding
Securities of each series to be affected. The Indenture also contains provisions
permitting the Holders of specified percentages in principal amount of the
Outstanding Securities of each series, on behalf of the Holders of all
Outstanding Securities of such series, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange or in lieu hereof, whether or not notation of
such consent or waiver is made upon this Security.

      No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the amount of principal of (and premium, if
any, on) and interest, if any, on this Security herein provided, and at the
times, place and rate, and in the coin or currency, herein prescribed.

      As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of (and
premium, if any, on) and interest, if any, on this Security are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Securities of this series, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

      The Securities of this series are issuable only in registered form without
coupons in denominations of $___________ and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal amount
of Securities of this series of different authorized denominations as requested
by the Holder surrendering the same.

                                      -5-
<PAGE>
      No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

      Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security be overdue, and neither the Company nor
the Trustee nor any such agent shall be affected by notice to the contrary.

All terms used in this Security which are defined in the Indenture shall have
the meanings assigned to them in the Indenture.

      This is one of the Securities of a series issued under the
within-mentioned Indenture.

Date:__________                    ___________________________,
                                   as Trustee

                            By ______________________________________
                                        Authorized Signatory

                                      -6-

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