Document:

TRANSFER AND SERVICING AGREEMENT

                                      among

                 GREATAMERICA LEASING RECEIVABLES 2002-1, L.L.C.
                                   as Issuer,

                        GREATAMERICA LEASING CORPORATION
                          as Servicer and as Originator

                                       and

                               JPMORGAN CHASE BANK
                              as Indenture Trustee

                            Dated as of March 1, 2002

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                                TABLE OF CONTENTS
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ARTICLE I  DEFINITIONS............................................................................................1
         Section 1.01.     Definitions............................................................................1
         Section 1.02.     Usage of Terms........................................................................30
         Section 1.03.     Section References....................................................................30
         Section 1.04.     Calculations..........................................................................30
         Section 1.05.     Accounting Terms......................................................................30

ARTICLE II  TRANSFER OF CONTRACT ASSETS..........................................................................30
         Section 2.01.     Transfer of Contract Assets...........................................................30
         Section 2.02.     Conditions to Transfer of Conveyed Assets to the Issuer...............................32
         Section 2.03.     Acceptance by Issuer..................................................................34
         Section 2.04.     Conveyance of Substitute Contracts....................................................34
         Section 2.05.     Release of Released Amounts...........................................................36
         Section 2.06.     Instruments...........................................................................36

ARTICLE III  REPRESENTATIONS AND WARRANTIES......................................................................36
         Section 3.01.     Representations and Warranties Regarding the Originator...............................37
         Section 3.02.     Representations and Warranties Regarding Each Contract and as to Certain
                              Contracts in the Aggregate.........................................................40
         Section 3.03.     Representations and Warranties Regarding the Initial Contracts in the Aggregate.......41
         Section 3.04.     Representations and Warranties Regarding the Contract Files...........................41
         Section 3.05.     Representations and Warranties Regarding Concentrations of Initial Contracts..........41
         Section 3.06.     Representations and Warranties Regarding the Issuer...................................42
         Section 3.07.     Representations and Warranties Regarding the Servicer.................................47
         Section 3.08.     [Reserved]............................................................................48

ARTICLE IV  PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS..........................................48
         Section 4.01.     Custody of Contracts..................................................................48
         Section 4.02.     Filing................................................................................48
         Section 4.03.     Name Change or Relocation.............................................................49
         Section 4.04.     Chief Executive Office................................................................49
         Section 4.05.     Costs and Expenses....................................................................49
         Section 4.06.     Sale Treatment........................................................................49
         Section 4.07.     Separateness from Issuer..............................................................50
         Section 4.08.     Insurance Policy of the Originator....................................................50

ARTICLE V  SERVICING OF CONTRACTS................................................................................50
         Section 5.01.     Appointment and Acceptance; Responsibility for Contract Administration................50
         Section 5.02.     General Duties........................................................................50
         Section 5.03.     Consent to Assignment or Replacement..................................................51

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         Section 5.04.     Disposition upon Termination of Contract..............................................51
         Section 5.05.     Subservicers..........................................................................51
         Section 5.06.     Further Assurance.....................................................................52
         Section 5.07.     Notice to Obligors....................................................................52
         Section 5.08.     Collection Efforts; Modification of Contracts.........................................52
         Section 5.09.     Prepaid Contract......................................................................53
         Section 5.10.     Acceleration..........................................................................53
         Section 5.11.     Taxes.................................................................................54
         Section 5.12.     Insurance Premiums....................................................................54
         Section 5.13.     Remittances...........................................................................54
         Section 5.14.     Servicer Advances.....................................................................54
         Section 5.15.     Realization upon Defaulted Contract...................................................54
         Section 5.16.     Maintenance of Insurance Policies.....................................................55
         Section 5.17.     Other Servicer Covenants..............................................................55
         Section 5.18.     Servicing Compensation................................................................56
         Section 5.19.     Payment of Certain Expenses by Servicer...............................................56
         Section 5.20.     Records...............................................................................57
         Section 5.21.     Inspection............................................................................57
         Section 5.22.     Indenture Trustee and Issuer to Cooperate in Releases.................................57

ARTICLE VI  COVENANTS OF THE ISSUER..............................................................................58
         Section 6.01.     Limited Liability Company Existence...................................................58
         Section 6.02.     Contracts Not to Be Evidenced by Promissory Notes.....................................58
         Section 6.03.     Security Interests....................................................................58
         Section 6.04.     Delivery of Collections...............................................................58
         Section 6.05.     Regulatory Filings....................................................................58
         Section 6.06.     Compliance with Law...................................................................59
         Section 6.07.     Activities............................................................................59
         Section 6.08.     Indebtedness..........................................................................59
         Section 6.09.     Guarantees............................................................................59
         Section 6.10.     Investments...........................................................................59
         Section 6.11.     Merger; Sales.........................................................................59
         Section 6.12.     Payments..............................................................................60
         Section 6.13.     Other Agreements......................................................................60
         Section 6.14.     Separate Entity Existence.............................................................60
         Section 6.15.     Location; Records.....................................................................61
         Section 6.16.     Liability of Issuer; Indemnities......................................................61
         Section 6.17.     Bankruptcy Limitations................................................................62
         Section 6.18.     Limitation on Liability of Issuer and Others..........................................62
         Section 6.19.     Chief Executive Office................................................................62

ARTICLE VII  ESTABLISHMENT OF ACCOUNTS; DISTRIBUTIONS; RESERVE FUND..............................................63
         Section 7.01.     Trust Accounts; Collections...........................................................63
         Section 7.02.     Reserve Fund Deposit..................................................................64
         Section 7.03.     Trust Account Procedures..............................................................64
         Section 7.04.     Noteholder Distributions..............................................................65
         Section 7.05.     Allocations and Distributions.........................................................65

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ARTICLE VIII  SERVICER DEFAULT; SERVICE TRANSFER.................................................................73
         Section 8.01.     Servicer Default......................................................................73
         Section 8.02.     Servicer Transfer.....................................................................74
         Section 8.03.     Appointment of Successor Servicer; Reconveyance; Successor Servicer to Act............75
         Section 8.04.     Notification to Noteholders...........................................................76
         Section 8.05.     Effect of Transfer....................................................................76
         Section 8.06.     Database File.........................................................................77
         Section 8.07.     Successor Servicer Indemnification....................................................77
         Section 8.08.     Responsibilities of the Successor Servicer............................................77
         Section 8.09.     Rating Agency Condition for Servicer Transfer.........................................78

ARTICLE IX  REPORTS..............................................................................................78
         Section 9.01.     Monthly Reports.......................................................................78
         Section 9.02.     Officer's Certificate.................................................................78
         Section 9.03.     Other Data............................................................................78
         Section 9.04.     Annual Report of Accountants..........................................................78
         Section 9.05.     Annual Statement of Compliance from Servicer..........................................79
         Section 9.06.     Annual Summary Statement..............................................................80

ARTICLE X  TERMINATION...........................................................................................80
         Section 10.01.    Sale of Pledged Assets................................................................80

ARTICLE XI  REMEDIES UPON MISREPRESENTATION; REPURCHASE OPTION...................................................80
         Section 11.01.    Repurchases of, or Substitution for, Contracts for Breach of Representations and
                              Warranties.........................................................................80
         Section 11.02.    Reassignment of Repurchased or Substituted Contracts..................................81

ARTICLE XII  ORIGINATOR INDEMNITIES..............................................................................81
         Section 12.01.    Originator's Indemnification..........................................................81
         Section 12.02.    Liabilities to Obligors...............................................................82
         Section 12.03.    Tax Indemnification...................................................................82
         Section 12.04.    Real Property Collateral..............................................................83
         Section 12.05.    Operation of Indemnities..............................................................83

ARTICLE XIII  MISCELLANEOUS......................................................................................83
         Section 13.01.    Amendment.............................................................................83
         Section 13.02.    Protection of Title...................................................................84
         Section 13.03.    Governing Law.........................................................................85
         Section 13.04.    Notices...............................................................................86
         Section 13.05.    Severability of Provisions............................................................87
         Section 13.06.    Third Party Beneficiaries.............................................................88
         Section 13.07.    Counterparts..........................................................................88
         Section 13.08.    Headings..............................................................................88
         Section 13.09.    No Bankruptcy Petition................................................................88
         Section 13.10.    Jurisdiction..........................................................................88
         Section 13.11.    Prohibited Transactions with Respect to the Issuer....................................89

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         Section 13.12.    Merger or Consolidation of Originator or Servicer.....................................89
         Section 13.13.    Assignment or Delegation by the Originator............................................89

                  EXHIBITS

Exhibit A         Form of Assignment............................................................................A-1
Exhibit B         Form of Closing Certificate of Issuer.........................................................B-1
Exhibit C         Form of Closing Certificate of Servicer/Originator............................................C-1
Exhibit D         [Reserved]....................................................................................D-1
Exhibit E         [Reserved]....................................................................................E-1
Exhibit F         Form of Certificate Regarding Repurchased Contracts...........................................F-1
Exhibit G         List of Contracts.............................................................................G-1
Exhibit H         Form of Monthly Report to Noteholders.........................................................H-1
Exhibit I         Form of Subsequent Transfer Agreement.........................................................I-1
Exhibit J         Forms of Contracts............................................................................J-1
Exhibit K         Officer's Certificate of Textron Business Services Inc........................................K-1

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         This TRANSFER AND SERVICING AGREEMENT, dated as of March 1, 2002, is
among GREATAMERICA LEASING RECEIVABLES 2002-1, L.L.C. (together with its
successors and assigns, the "Issuer"), JPMorgan Chase Bank (solely in its
capacity as Indenture Trustee, together with its successors and assigns, the
"Indenture Trustee"), GREATAMERICA LEASING CORPORATION (together with its
successors and assigns, "GreatAmerica," in its capacity as Servicer, together
with its successor and assigns, the "Servicer" and in its capacity as
originator, together with its successor and assigns, the "Originator").

         WHEREAS, in the regular course of its business, the Originator
originates and purchases Contracts (as defined herein);

         WHEREAS, the Issuer desires to acquire the Initial Contracts from the
Originator and may acquire from time to time thereafter certain Substitute
Contracts (such Initial Contracts and Substitute Contracts, together with
certain related property as more fully described herein, being the Contract
Assets as defined herein);

         WHEREAS, it is a condition to the Issuer's acquisition of the Contracts
Pool from the Originator that the Originator make certain representations and
warranties regarding the Contract Assets for the benefit of the Issuer;

         WHEREAS, the Issuer is willing to purchase and accept assignment of the
Contract Assets from the Originator pursuant to the terms hereof; and

         WHEREAS, on the Closing Date, the Issuer will grant, transfer, assign
and otherwise convey all its right, title and interest in the Conveyed Assets to
JPMorgan Chase Bank, as Indenture Trustee pursuant to an Indenture, dated as of
the date hereof (the "Indenture") between the Issuer and the Indenture Trustee.

         WHEREAS, the Servicer is willing to service the Contracts for the
benefit and account of the Issuer and the Indenture Trustee on behalf of the
Noteholders pursuant to the terms hereof;

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         SECTION 1.01.        DEFINITIONS.
                              -----------

         Whenever used in this Agreement, the following words and phrases,
unless the context otherwise requires, shall have the following meanings:

         "Accrual Period" means the period from and including the most recent
Payment Date to but excluding the following Payment Date, provided that the
initial Accrual Period following the Closing Date shall be the period from and
including the Closing Date to but excluding the first Payment Date following the
Closing Date.

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         "Addition Notice" means, with respect to any transfer of Substitute
Contracts to the Issuer pursuant to Section 2.04, a notice, which shall be given
at least three (3) Business Days prior to the related Subsequent Transfer Date,
identifying the Substitute Contracts to be transferred, the Principal Balance of
such Substitute Contracts and the related Substitution Event (with respect to an
identified Contract or Contracts then in the Contracts Pool) to which such
Substitute Contract relates, with such notice to be signed by the Originator.

         "Additional Principal" means, with respect to a Payment Date (i) if the
Class B Target Investor Principal Amount, the Class C Target Investor Principal
Amount and the Class D Target Investor Principal Amount exceed the Class B
Floor, the Class C Floor and the Class D Floor, respectively, an amount of $0;
or (ii) if any of the conditions in clause (i) are not satisfied, an amount
equal to the excess, if any, of (A) the Monthly Principal Amount, over (B) the
sum of the Class A Principal Payment Amount, Class B Principal Payment Amount,
Class C Principal Payment Amount and the Class D Principal Payment Amount for
such Payment Date.

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

         "Aggregate Loss Amount" means the excess, if any, of (x) the aggregate
amount of the Principal Balances (calculated with respect to a Defaulted
Contract as of the date immediately before such Contract became a Defaulted
Contract) of all the Contracts that became Defaulted Contracts during all prior
Collection Periods (including such Collection Period) over (y) the aggregate
amount of all Recoveries collected by the Servicer with respect to those
Defaulted Contracts.

         "Aggregate Principal Amount" means, with respect to any group of Notes,
at any date of determination, the sum of the Principal Amounts of such Notes on
such date of determination.

         "Agreement" means this Transfer and Servicing Agreement, as amended,
supplemented or otherwise modified from time to time in accordance with the
terms hereof.

         "Assignment" means the Assignment, substantially in the form of Exhibit
A relating to the assignment, transfer and conveyance of the Initial Contracts
and related property by the Originator to the Issuer.

         "Available Amounts" means, as of any Payment Date, the sum of (i)
except for Excluded Amounts, all amounts on deposit in the Collection Account as
of the immediately preceding Determination Date on account of Scheduled Payments
due on or before, Prepayments received on or before, the last day of the
Collection Period immediately preceding such Payment Date (other than Excluded
Amounts) and Servicer Advances received for Scheduled Payments due in such
Collection Period; (ii) Recoveries on account of previously Defaulted Contracts
received as of the last day of the immediately preceding Collection Period;
(iii) amounts received related to Vendor recourse; (iv) Residual Receipts
received during the preceding Collection Period; (v)

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amounts on deposit in the Payahead Account received in previous Collection
Periods and (a) due in the related Collection Period, (b) made with respect to
any Contract repurchased by the Originator or (c) with respect to each Contract
for which a prepayment insufficient to prepay the Contract in full has been made
by or on behalf of the Obligor for the related Collection Period; (vi)
Investment Earnings credited to the Collection Account, the Reserve Fund, the
Residual Account or the Payahead Account as of the last day of the immediately
preceding Collection Period and (vii) proceeds of any of the foregoing.

         "Booked Residual Value" means, with respect to any Contract and the
related Equipment on any date of determination, the estimated residual value of
the Equipment subject to such Contract recorded on the Originator's books, in
accordance with the Originator's standard policies, as of the applicable Cut-Off
Date.

         "Business Day" means any day that is neither a Saturday or a Sunday,
nor another day on which banking institutions in the city of Cedar Rapids, Iowa
or New York, New York are authorized or obligated by law, executive order, or
governmental decree to be closed.

         "Casualty Loss" means, with respect to any item of Equipment, the loss,
theft, damage beyond repair or governmental condemnation or seizure of such item
of Equipment.

         "Class" means any of the group of Notes identified herein as, as
applicable, the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the
Class A-4 Notes, the Class B Notes, the Class C Notes, or the Class D Notes.

         "Class A Notes" means the Class A-1 Notes, Class A-2 Notes, Class A-3
Notes and Class A-4 Notes.

         "Class A Percentage" means 83.2%.

         "Class A Principal Payment Amount" means, with respect to a Payment
Date, the amount necessary to reduce the Outstanding Aggregate Principal Amount
of the Class A-1 Notes, the Class A-2 Notes, Class A-3 Notes, and Class A-4
Notes to the Class A Target Investor Principal Amount.

         "Class A Target Investor Principal Amount" means, with respect to a
Payment Date, an amount equal to the product (i) the Class A Percentage and (ii)
the Pool Balance as of the last day of the related Collection Period.

         "Class A-1 Interest Rate" means 2.25794% per annum (calculated on the
basis of a year of 360 days and actual days elapsed in the Accrual Period).

         "Class A-1 Maturity Date" means the February, 2003 Payment Date.

         "Class A-1 Noteholder" means the Person in whose name a Class A-1 Note
is registered in the Note Register.

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         "Class A-1 Notes" means the $51,698,228 aggregate initial principal
amount GreatAmerica Leasing Receivables 2002-1, L.L.C., Class A-1
Receivable-Backed Notes, Series 2002-1, issued pursuant to the Indenture.

         "Class A-2 Interest Rate" means 3.360% per annum (calculated on the
basis of a year of 360 days and twelve 30-day months).

         "Class A-2 Maturity Date" means the January, 2004 Payment Date.

         "Class A-2 Noteholder" means the Person in whose name a Class A-2 Note
is registered in the Note Register.

          "Class A-2 Notes" means the $38,294,984 aggregate initial principal
amount GreatAmerica Leasing Receivables 2002-1, L.L.C., Class A-2
Receivable-Backed Notes, Series 2002-1, issued pursuant to the Indenture.

         "Class A-3 Interest Rate" means 4.470% per annum (calculated on the
basis of a year of 360 days and twelve 30-day months).

         "Class A-3 Maturity Date" means the August, 2005 Payment Date.

         "Class A-3 Noteholder" means the Person in whose name a Class A-3 Note
is registered in the Note Register.

         "Class A-3 Notes" means the $84,887,215 aggregate initial principal
amount GreatAmerica Leasing Receivables 2002-1, L.L.C., Class A-3
Receivable-Backed Notes, Series 2002-1, issued pursuant to the Indenture.

         "Class A-4 Interest Rate" means 5.100% per annum (calculated on the
basis of a year of 360 days and twelve 30-day months).

         "Class A-4 Maturity Date" means the November, 2006 Payment Date.

         "Class A-4 Noteholder" means the Person in whose name a Class A-4 Note
is registered in the Note Register.

         "Class A-4 Notes" means the $37,529,084 aggregate initial principal
amount GreatAmerica Leasing Receivables 2002-1, L.L.C., Class A-4
Receivable-Backed Notes, Series 2002-1, issued pursuant to the Indenture.

         "Class B Floor" means, with respect to a Payment Date,

               (i)  3.66% of the Original Pool Balance plus

               (ii) the Cumulative Loss Amount as of such date, minus

               (iii) the sum of (a) the outstanding Principal Amount of the
          Class C Notes and Class D Notes as of the immediately preceding
          Payment Date after giving effect to all principal payments made on
          such Payment Date, (b) the Overcollateralization Balance as

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          of the immediately preceding Payment Date and (c) the amount on
          deposit in the Reserve Fund and the Residual Account after giving
          effect to amounts to be withdrawn on such Payment Date.

         "Class B Interest Rate" means 4.600% per annum (calculated on the basis
of a year of 360 days and twelve 30-day months).

         "Class B Maturity Date" means the June, 2007 Payment Date.

         "Class B Noteholder" means the Person in whose name a Class B Note is
registered in the Note Register.

         "Class B Notes" means the $10,722,596 aggregate initial principal
amount GreatAmerica Leasing Receivables 2002-1, L.L.C., Class B
Receivable-Backed Notes, Series 2002-1, issued pursuant to the Indenture.

         "Class B Percentage" means 4.20%.

         "Class B Principal Payment Amount" means, with respect to a Payment
Date, the lesser of (1) the excess, if any, of (a) the Monthly Principal Amount
over (b) the Class A Principal Payment Amount and (2) the excess, if any, of (a)
the Outstanding Aggregate Principal Amount of the Class B Notes over (b) the
greater of (x) the Class B Target Investor Principal Amount and (y) the Class B
Floor.

         "Class B Target Investor Principal Amount" means, with respect to a
Payment Date, an amount equal to the product of (i) the Class B Percentage and
(ii) the Pool Balance as of the last day of the related Collection Period.

         "Class C Floor" means, with respect to a Payment Date,

               (i) 2.82% of the Original Pool Balance plus

               (ii) the Cumulative Loss Amount as of such date, minus

               (iii) the sum of (a) the outstanding Principal Amount of the
          Class D Notes as of the immediately preceding Payment Date after
          giving effect to all principal payments made on such date, (b) the
          Overcollateralization Balance as of the immediately preceding Payment
          Date and (c) the amount on deposit in the Reserve Fund and the
          Residual Account after giving effect to amounts to be withdrawn on
          such date;

provided, however, that if the Class B Target Investor Principal Amount as of
such Payment Date is less than or equal to the Class B Floor on such Payment
Date, the Class C Floor will be an amount equal to the Principal Amount of the
Class C Notes utilized in the calculation of the Class B Floor for such Payment
Date.

         "Class C Interest Rate" means 4.910% per annum (calculated on the basis
of a year of 360 days and twelve 30-day months).

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         "Class C Maturity Date" means the July, 2007 Payment Date.

         "Class C Noteholder" means the Person in whose name a Class C Note is
registered in the Note Register.

         "Class C Notes" means the $10,850,245 aggregate initial principal
amount GreatAmerica Leasing Receivables 2002-1, L.L.C., Class C
Receivable-Backed Notes, Series 2002-1, issued pursuant to the Indenture.

         "Class C Percentage" means 4.25%.

         "Class C Principal Payment Amount" means, with respect to a Payment
Date, the lesser of (1) the excess, if any, of (a) the Monthly Principal Amount
over (b) the sum of the Class A Principal Payment Amount and the Class B
Principal Payment Amount and (2) the excess, if any, of (a) the Outstanding
Aggregate Principal Amount of the Class C Notes over (b) the greater of (x) the
Class C Target Investor Principal Amount and (y) the Class C Floor.

         "Class C Target Investor Principal Amount" means, with respect to a
Payment Date, an amount equal to the product of (i) the Class C Percentage and
(ii) the Pool Balance as of the last day of the related Collection Period.

         "Class D Floor" means, with respect to a Payment Date,

               (i) 1.97% of the Original Pool Balance plus

               (ii) the Cumulative Loss Amount as of such date, minus

               (iii) the sum of (a) the Overcollateralization Balance as of the
          immediately preceding Payment Date and (b) the amount on deposit in
          the Reserve Fund and the Residual Account after giving effect to
          amounts to be withdrawn on such date;

provided, however, that if the Class C Target Investor Principal Amount as of
such Payment Date is less than or equal to the Class C Floor on such Payment
Date, the Class D Floor will be an amount equal to the Principal Amount of the
Class D Notes utilized in the calculation of the Class C Floor for such Payment
Date.

         "Class D Interest Rate" means 5.550% per annum (calculated on the basis
of a year of 360 days and twelve 30-day months).

         "Class D Maturity Date" means the December, 2008 Payment Date.

         "Class D Noteholder" means the Person in whose name a Class D Note is
registered in the Note Register.

         "Class D Notes" means the $13,658,544 aggregate initial principal
amount GreatAmerica Leasing Receivables 2002-1, L.L.C., Class D
Receivable-Backed Notes, Series 2002-1, issued pursuant to the Indenture.

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         "Class D Percentage" means 5.35%.

         "Class D Principal Payment Amount" means, with respect to a Payment
Date, the lesser of (1) the excess, if any, of (a) the Monthly Principal Amount
over (b) the sum of the Class A Principal Payment Amount, the Class B Principal
Payment Amount and the Class C Principal Payment Amount and (2) the excess, if
any, of (a) the Outstanding Aggregate Principal Amount of the Class D Notes over
(b) the greater of (x) the Class D Target Investor Principal Amount and (y) the
Class D Floor.

         "Class D Target Investor Principal Amount" means, with respect to a
Payment Date, an amount equal to the product of (i) the Class D Percentage and
(ii) the Pool Balance as of the last day of the related Collection Period.

         "Closing Date" means March 28, 2002.

         "Code" means the Internal Revenue Code of 1986, as amended.

         "Collateral" has the meaning given such term in the "granting clause"
of the Indenture.

         "Collection Account" means the Trust Account so designated established
pursuant to Section 7.01.

         "Collection Period" means a period beginning on and including the first
day of a calendar month and ending on and including, the last day of such
calendar month, provided that the first Collection Period shall be the period
beginning on the Initial Cutoff Date and ending on and including the last day of
the calendar month in which the Initial Cutoff Date occurs.

         "Collections" means all payments received on or with respect to the
Contracts in the Contracts Pool or the related Equipment, including, without
limitation, Scheduled Payments, Prepayments, Residual Receipts and Recoveries,
all as related to amounts attributable to the Contracts in the Contracts Pool or
the related Equipment (including any such amounts derived from Vendor recourse
provisions), but excluding any Excluded Amounts.

         "Commission" means the United States Securities and Exchange
Commission.

         "Computer Records" means the computer records generated by the Servicer
that provide information relating to the Contracts and that were used by the
Originator in selecting the Contracts conveyed to the Issuer pursuant to Section
2.01 (and any Substitute Contracts conveyed to the Issuer pursuant to Section
2.04).

         "Contract" means each Lease, Secured Note, Purchase Order, Software
Only Agreement or other Financing Agreement covering Financed Items, originated
or purchased by the Originator, and including both Initial Contracts and
Substitute Contracts.

         "Contract Assets" has the meaning assigned in Section 2.01 (and Section
2.04, as applicable in the case of Substitute Contracts).

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         "Contract File" means, with respect to each Contract, the fully
executed original counterpart (for UCC purposes) of the Contract, the original
certificate of title or other title document with respect to the related
Equipment (if applicable), the UCC filing, if any, and any assignments thereof,
evidence of ratings of the Obligors by Moody's, S&P or Dun & Bradstreet and
otherwise such documents, if any, that the Servicer keeps on file in accordance
with its customary procedures, evidencing ownership of such Equipment (if
applicable) and all other documents originally delivered to the Originator or
held by the Servicer with respect to any Contract.

         "Contracts Pool" as of any date means the Initial Contracts and the
Substitute Contracts (if any), other than any such Contracts that (i) have been
reconveyed by the Indenture Trustee to the Issuer, and concurrently by the
Issuer to the Originator, pursuant to Section 11.02 hereof, or (ii) have been
paid (or prepaid) in full.

         "Conveyed Assets" has the meaning given to such term in Section 2.01(b)
hereof (and in Section 2.04(a) hereof in respect of Substitute Contracts and
related assets transferred to the Issuer pursuant to Subsequent Transfer
Agreements).

         "Corporate Trust Office" means, with respect to the Indenture Trustee,
the office of the Indenture Trustee at which at any particular time its
corporate trust business shall be principally administered, which office at the
date of the execution of this Agreement is located at the addresses set forth in
Section 13.04.

         "Cumulative Loss Amount" means, with respect to a Payment Date, an
amount equal to the excess, if any, of:

               (i) the total of

                    (A) the Outstanding Principal Amount of the Notes as of the
               immediately preceding Payment Date after giving effect to all
               principal payments made on such date, plus

                    (B) the Overcollateralization Balance as of the immediately
               preceding Payment Date, minus

                    (C) the lesser of: (1) the Monthly Principal Amount and (2)
               Available Amounts remaining after payment of amounts owing to the
               Servicer, including Unreimbursed Servicer Advances and Servicing
               Fees, and after payment of interest on the Notes on such date;
               over

               (ii) the Pool Balance as of the last day of the immediately
          preceding Collection Period.

         "Cumulative Net Loss Percentage" means, with respect to a Determination
Date, the percentage equivalent of a fraction, (a) the numerator of which is the
Aggregate Loss Amount as of the last day of the immediately preceding Collection
Period and (b) the denominator of which is the Original Pool Balance.

                                       8

<PAGE>

         "Custodian Agreement" means the Custodian Agreement dated as of the
date hereof between GreatAmerica Leasing Corporation, as custodian and the
Indenture Trustee.

         "Cutoff Date" means either or both (as the context may require) the
Initial Cutoff Date and any Subsequent Cutoff Date, as applicable to the
Contract or Contracts in question.

         "Defaulted Contract" means a Contract in the Contracts Pool with
respect to which there has occurred one or both of the following: (i) less than
ninety percent of any Scheduled Payment under the Contract has been received
from the related Obligor for 120 days or such shorter period as the Servicer may
determine consistent with its collection policy or (ii) the Servicer has
determined, in accordance with its usual and customary practices (and taking
into account any available Vendor recourse), that such Contract is not
collectible.

         "Determination Date" means, with respect to any Payment Date, the third
Business Day prior to such Payment Date or, if such day is not a Business Day,
the Business Day preceding such day.

         "Discount Rate" means the rate of 5.299% which is equal to the sum of
(a) the weighted average of the Class A-1 Interest Rate, the Class A-2 Interest
Rate, the Class A-3 Interest Rate, the Class A-4 Interest Rate, the Class B
Interest Rate, the Class C Interest Rate and the Class D Interest Rate, each
weighted by (i) the initial principal balance of the Class A-1 Notes, the
initial principal balance of the Class A-2 Notes, the initial principal balance
of the Class A-3 Notes, the initial principal balance of the Class A-4 Notes,
the initial principal balance of the Class B Notes, the initial principal
balance of the Class C Notes and the initial principal balance of the Class D
Notes and (ii) the weighted average life to call of the Class A-1 Notes, the
Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B Notes,
the Class C Notes and the Class D Notes under a 0% conditional prepayment rate
and assuming no loss scenario and that the Issuer will exercise its option to
redeem the Notes when the aggregate Principal Balance of the Contracts is less
than 15% of the Original Pool Balance, (b) the Servicer Fee Rate and (c) 0.025%.

         "Dollar" and "$" means lawful currency of the United States of America.

         "Eligible Contract" means at any date of determination, each Contract
with respect to which each of the following is true (to the extent applicable to
such type of Contract):

                           (A) the Contract is a valid and binding payment
                  obligation of the Obligor, is enforceable in accordance with
                  its terms (except as may be limited by applicable Insolvency
                  Laws and the availability of equitable remedies) and contains
                  a clause that has the effect of unconditionally and
                  irrevocably obligating the Obligor to make periodic Scheduled
                  Payments (including taxes, if any) to the assignee of the
                  Contract, notwithstanding any rights the Obligor may have
                  against the assignor and is in full force and effect and has
                  not been satisfied, subordinated or rescinded as of the Cutoff
                  Date;

                           (B) the Contract is noncancellable by the Obligor and
                  does not contain any early termination

                                       9

<PAGE>

                  options (except for Contracts that contain early termination
                  or prepayment clauses, but require full repayment upon
                  cancellation of the contract);

                           (C) all payments payable under the Contract are
                  absolute, unconditional obligations of the Obligor and the
                  Contract does not provide for offset for any reason and
                  provides for acceleration of the Scheduled Payments upon
                  default by the Obligor;

                           (D) the Contract (other than each Purchase Order and
                  each Software Only Agreement) is a triple net lease and
                  requires the Obligor to maintain the Equipment in good working
                  order, to bear all the costs of operating the Equipment,
                  including taxes, if any, and insurance relating thereto and to
                  assume all risk of loss or malfunction of the related
                  Equipment;

                           (E) all requirements of federal, state and local
                  laws, and regulations thereunder, including, without
                  limitation, usury laws, if any, in respect of the Contract
                  have been compiled with, and the Contract complied at the time
                  it was originated or made and as of the Closing Date or
                  related Cutoff Date will comply with all legal requirements of
                  the jurisdiction in which it was originated;

                           (F) no proceedings or investigations are pending or,
                  to the best of the Originator's knowledge after due inquiry,
                  have been threatened before any court, regulatory body,
                  administrative agency or other tribunal or governmental
                  instrumentality asserting the invalidity of the Contract
                  seeking to prevent payment and performance of such Contract,
                  or seeking any determination or ruling that might adversely
                  and materially affect the validity or enforceability of any
                  Contract;

                           (G) the Contract was not originated nor was it
                  subject to the laws of any jurisdiction the laws of which
                  would make unlawful the sale, transfer and assignment of such
                  Contract under the Transfer and Servicing Agreement;

                           (H) the Contract requires that (i) the Obligor will
                  obtain insurance and list GreatAmerica as the loss payee in an
                  amount not less than the replacement cost of the Equipment
                  related thereto; and (ii) in the event of a Casualty Loss, the
                  Servicer may require the Obligor (A) to pay at a minimum the
                  remaining Principal Balance of the Contract or (B) to replace
                  the Equipment with like Equipment in good repair, acceptable
                  to the Servicer, at the Obligor's expense;

                           (I) in addition to the insurance maintained by the
                  Obligors with respect to the Equipment, the Originator
                  maintains, with an insurer with a general policy rating of A
                  or better with a class of VI or better by A.M. Best & Co., a
                  general liability insurance policy with coverage in the amount
                  of $1,000,000 per occurrence and coverage in the aggregate
                  amount of $2,000,000. The policy is in full force and effect
                  and covers all Equipment owned by the Originator. All premiums
                  in respect of such policies have been paid. The Indenture
                  Trustee is named as an additional insured on such liability
                  policies;

                                       10

<PAGE>

                           (J) immediately prior to the transfer of such
                  Contract and any related Equipment (or security interest
                  therein) to the Issuer, and immediately prior to the Issuer's
                  concurrent transfer thereof to the Indenture Trustee, such
                  Contract was owned by the Originator (and by the Issuer
                  following the transfer by the Originator) free and clear of
                  any adverse claim, other than with respect to any Permitted
                  Liens;

                           (K) the Contract and any related Equipment or
                  interest therein has been transferred to the Issuer free and
                  clear of any liens (except for Permitted Liens) and is
                  assignable without prior written consent of the Obligor (or
                  such consent has been obtained); with respect to leases that
                  are not true leases, the Originator has transferred its first
                  priority perfected security interest (if the book value is
                  $25,000 or more and where the related Obligor was rated below
                  (1) Baa3 or better by Moody's, (2) BBB or better by S&P or (3)
                  3A2 or better by Dun & Bradstreet) in the Equipment to the
                  Issuer, free and clear of adverse claims, except Permitted
                  Liens and the Originator had the power to convey such contract
                  and its interest in the Equipment free and clear of any liens
                  or encumbrances;

                           (L) the Contract does not provide for the
                  substitution, addition or exchange of any item of equipment
                  subject to such contract that would result in any reduction,
                  or change the timing of, payments due, or modification of the
                  Obligor's other obligations under such Contract;

                           (M) the Contract has an original maturity of
                  not greater than 85 months;

                           (N) the Obligor on the Contract has paid at least one
                  Scheduled Payment to the Originator or paid the security
                  deposit;

                           (O) the Contract is a U.S. dollar-denominated
                  obligation and, at inception, the Obligor and the associated
                  Equipment were and will continue to be located in the United
                  States, the United States territories of the Virgin Islands
                  and Puerto Rico and will continue to be located in the United
                  States, the United States territories of the Virgin Islands
                  and Puerto Rico;

                           (P) there is not more than one "secured party's
                  original" counterpart of the Contract and the sole manually
                  executed counterpart of the Contract that constitutes an
                  instrument is in the possession of the Custodian and has been
                  properly endorsed through the proper chain of title to the
                  Indenture Trustee;

                           (Q) immediately prior to the Closing Date or the
                  related Cutoff Date, the Originator will have possession of
                  the original Contract, and immediately prior to the
                  Originator's execution and delivery of the Transfer and
                  Servicing Agreement, there will be no other custodial
                  agreements in effect adversely affecting the rights of the
                  Originator to make, or cause to be made, any delivery required
                  thereunder;

                                       11

<PAGE>

                           (R) the Contract is not a consumer contract or a
                  "consumer lease" as defined in Section 2A-103(1)(e) of the
                  UCC;

                           (S) the Obligor of such Contract is a corporation,
                  partnership, limited liability company, or unincorporated
                  business association not using the related Equipment for
                  personal, family or household purposes, and no item of
                  Equipment has been repossessed;

                           (T) the Contract is not subject to any guaranty by
                  the Originator, nor has the Originator established any
                  specific credit reserve with respect to the related Obligor;

                           (U) the Contract was either originated or purchased
                  in a true sale transaction, by the Originator in the ordinary
                  course of its business in accordance with its customary
                  underwriting practices and credit policies and no adverse
                  selection procedure was used in selecting the Contract for
                  transfer to the Issuer;

                           (V) the Originator has duly fulfilled all material
                  obligations on its part to be fulfilled under, or in
                  connection with, the Contract and has done nothing to
                  materially impair the rights of the Issuer, the Indenture
                  Trustee or the Noteholders in such Contract, the Equipment,
                  the Scheduled Payments or any income or proceeds with respect
                  thereto;

                           (W) the origination and collection practices used by
                  the Originator with respect to the Contract have been in all
                  respects, legal and customary in the equipment financing and
                  servicing business and complies in all material respects to
                  the Originator's customary underwriting practice and credit
                  policies;

                           (X) the Obligor with respect to the Contract has
                  accepted the Equipment under such Contract therefore as being
                  in good working condition, after adequate opportunity to test
                  and inspect, has not notified the Originator of any defects
                  therein and the Originator has no knowledge of any material
                  equipment malfunction or other claim by the Obligor with
                  respect to the material performance of the Equipment under the
                  Contract;

                           (Y) at the time that any item of Equipment is
                  assigned, transferred and contributed pursuant to the Transfer
                  and Servicing Agreement, such Equipment has not suffered any
                  loss or damage except for such Equipment that has been
                  restored to its original value, ordinary wear and tear
                  excepted;

                           (Z)  the Contract is not the subject of litigation;

                           (AA) the Obligor of the Contract is not, as of the
                   applicable Cutoff Date, subject to bankruptcy or other
                   insolvency proceedings;

                           (BB) the Contract is not more than 60 days past due;

                           (CC) the Contract is not a Defaulted Contract;

                                       12

<PAGE>

                           (DD) the operation of any of the terms of the
                  Contract or the exercise by the Issuer, the Indenture Trustee
                  or the Servicer of any right under any Contract will not
                  render the Contract unenforceable in whole or in part, and no
                  right of rescission, set-off, counterclaim or defense has been
                  asserted in writing with respect thereto;

                           (EE) the information with respect to the Contract and
                  the Equipment, where the Contract relates to Equipment being
                  currently acquired is true and correct in all material
                  respects;

                           (FF) no provision of the Contract has been waived,
                  altered or modified in any respect, except by instruments or
                  documents contained in the Contract File and the Contract is
                  for the item of Equipment identified therein;

                           (GG) the original date of the final Scheduled Payment
                  of the Contract has not been extended more than once since the
                  origination of such Contract;

                           (HH) except as otherwise reflected in the List of
                  Contracts, the Contract has not been amended prior to the
                  Closing Date or the related Cutoff Date such that the amount
                  of any Scheduled Payment or the aggregate Scheduled Payments
                  have been decreased, or any other obligations of the Obligor
                  under the Contact have been diminished;

                           (II) all filings necessary to evidence the conveyance
                  or transfer the Originator's ownership interest in the
                  Contract, and the Originator's corresponding interest in the
                  related Equipment, to the Issuer (as well as the concurrent
                  pledge of such property from the Issuer to the Indenture
                  Trustee), have been made; provided, that Uniform Commercial
                  Code financing statement filings with respect to Equipment
                  that name the Originator as secured party have not been
                  amended to indicate either the Issuer or the Indenture Trustee
                  as an assignee;

                           (JJ) no item of Equipment has been relocated from
                  the jurisdiction set forth in the Contract;

                           (KK) the transfer, assignment and contribution to the
                  Issuer of the Contract and the Originator's right, title and
                  interest in and to any item of Equipment will not violate the
                  terms or provisions of any such Contract or any other
                  agreement to which the Originator then is a party or by which
                  it is bound;;

                           (LL) the Originator has obtained a security interest
                  (subject to Permitted Liens) in the Equipment related to the
                  Contract, which interest shall be a first priority perfected
                  security interest in the case of Equipment with an original
                  book value of $25,000 or more unless the related Obligor was
                  rated (1) Baa3 or better by Moody's, (2) BBB or better by S&P
                  or (3) 3A2 or better by Dun & Bradstreet;

                           (MM) if the Contract is a lease of Equipment subject
                  to certificate of title statutory requirements, the title is
                  held either in the name of the lessee and the

                                       13

<PAGE>

                 certificate of title indicates the Originator as lienholder
                 or in the name of the Originator as lessor;

                           (NN) the Contract  constitutes "chattel paper" or
                  "instruments" as defined under the UCC;

                           (OO) in the case of each Contract that consists of a
                  master lease and one or more exhibits or schedules thereto,
                  (i) the Originator has not assigned, and will not assign, such
                  master lease in its entirety or in part (except for the
                  assignment of its rights under such master lease as collateral
                  in connection with the financing of a schedule issued pursuant
                  to and incorporating the terms of such master lease and not
                  constituting a Contract), and has not delivered and will not
                  deliver physical possession of such master lease, to any
                  person other than the Indenture Trustee or the Servicer, (ii)
                  such exhibits or schedules constitute a separate Contract to
                  which all representations and warranties referred to herein
                  apply and are not part of any other Contract not sold to the
                  Issuer, and (iii) no schedule shall be related to an upgrade
                  of equipment unless the entire item of equipment is financed
                  under such schedule; and

                           (PP) such Contract is on a form substantially similar
                  to one of the Forms of Contracts attached as Exhibit J.

         "Eligible Deposit Account" means either (a) a segregated account with a
Qualified Institution, or (b) a segregated trust account with the corporate
trust department of a depository institution organized under the laws of the
Untied States or any one of the states thereof, including the District of
Columbia (or any domestic branch of a foreign bank), and acting as a trustee for
funds deposited in such account, so long as any of the securities of such
depository institution shall have a credit rating from each Rating Agency in one
of its short-term credit rating categories that signifies investment grade.

         "Eligible Investments" with respect to any Payment Date means
negotiable instruments or securities or other investments maturing on or before
such Payment Date (a) that, except in the case of demand or time deposits,
investments in money market funds and Eligible Repurchase Obligations, are
represented by instruments in bearer or registered form or ownership of which is
represented by book entries by a Clearing Agency or by a Federal Reserve Bank in
favor of depository institutions eligible to have an account with such Federal
Reserve Bank who hold such investments on behalf of their customers, (b) which,
as of any date of determination, mature by their terms on or prior to the
Payment Date immediately following such date of determination, and (c) which
evidence:

                  (i) direct obligations of, and obligations fully guaranteed as
         to full and timely payment by, the United States of America (or by any
         agency thereof to the extent such obligations are backed by the full
         faith and credit of the United States of America);

                  (ii) demand deposits, time deposits or certificates of deposit
         of depository institutions or trust companies incorporated under the
         laws of the United States of America or any state thereof and subject
         to supervision and examination by federal or

                                       14

<PAGE>

         state banking or depository institution authorities; provided,
         however, that at the time of the Issuer's investment or contractual
         commitment to invest therein, the commercial paper, if any, and
         short-term unsecured debt obligations (other than such obligation
         whose rating is based on the credit of a Person other than such
         institution or trust company) of such depository institution or trust
         company shall have a credit rating from each Rating Agency in the
         Highest Required Investment Category granted by such Rating Agency;

                  (iii) commercial paper, or other short term obligations,
         having, at the time of the Issuer's investment or contractual
         commitment to invest therein, a rating in the Highest Required
         Investment Category granted by each Rating Agency;

                  (iv) demand deposits, time deposits or certificates of deposit
         that are fully insured by the FDIC and either have a rating on their
         certificates of deposit or short-term deposits from Moody's and S&P of
         P-1 and A-1+, respectively, and, if rated by Fitch, from Fitch of F1+,
         or otherwise have a rating acceptable to the Rating Agencies;

                  (v) notes that are payable on demand or bankers' acceptances
         issued by any depository institution or trust company referred to in
         (ii) above;

                  (vi) investments in JPMorgan Prime Money Market Funds or other
         regulated investment companies having, at the time of the Issuer's
         investment or contractual commitment to invest therein, a rating of the
         Highest Required Investment Category from each Rating Agency or if
         otherwise approved of in writing by the Rating Agencies;

                  (vii) Eligible Repurchase Obligations with a rating
         acceptable to the Rating Agencies; and

                  (viii) any negotiable instruments or securities or other
         investments in which the investment by the Issuer therein has been
         approved in writing by each Rating Agency.

         The Indenture Trustee may purchase or sell to itself or an Affiliate,
as principal or agent, the Eligible Investments described above.

         "Eligible Repurchase Obligations" means repurchase obligations with
respect to any security that is a direct obligation of, or fully guaranteed by,
the United States of America or any agency or instrumentality thereof the
obligations of which are backed by the full faith and credit of the United
States of America, in either case entered into with a depository institution or
trust company (acting as principal) described in clauses (c)(ii) and (c)(v) of
the definition of Eligible Investments.

         "Eligible Servicer" has the meaning given to such term in Section 8.03
hereof.

         "Equipment" means the tangible assets financed or leased by an Obligor
pursuant to a Contract and the related security interest granted by such Obligor
in such assets.

         "ERISA" means the United States Employee Retirement Income Security Act
of 1974, as amended from time to time, and the regulations promulgated and
rulings issued thereunder.

                                       15

<PAGE>

         "Event of Default" shall have the meaning specified in Section 5.01 of
the Indenture.

         "Excess Contract," as of any date of determination, means each Contract
selected by the Servicer in accordance with Section 11.01 at such time as there
shall have been discovered a breach of any of the representations and warranties
set forth in Section 3.05, the removal of which pursuant to Section 11.01 and
the Originator's repurchase thereof or substitution of a Substitute Contract
therefor pursuant to Section 11.01, shall remedy such breach.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended or
supplemented from time to time.

         "Excluded Amounts" means any collections on deposit in the Collection
Account or otherwise received by the Servicer on or with respect to the
Contracts Pool or related Equipment, which collections are attributable to (i)
any (a) late charges or (b) any taxes and fees or other charges imposed by any
Governmental Authority, (ii) reimbursements of insurance premiums or payments
for services that were not financed by the Originator, (iii) indemnity payments
or maintenance payments, (iv) other non-contract charges (including
documentation fees) reimbursable to the Servicer in accordance with the
Servicer's customary policies and procedures, (v) any collections with respect
to repurchased or expired Contracts, and (vi) amounts due to be paid to the
Originator prior to the applicable Cutoff Date.

         "FDIC" shall mean the Federal Deposit Insurance Corporation, or any
successor thereto.

         "Financed Items" means, with respect to a Contract, the specifically
identified Equipment and other property, together with all accessions thereto,
securing indebtedness of an Obligor under such Contract.

         "Financing Agreement" means each financing agreement covering Financed
Items other than a Secured Note, a Purchase Order, a Software Only Agreement or
a Lease.

         "Fitch" means Fitch, Inc. or any successor thereto.

         "Forms of Contracts" means the forms of contracts attached hereto as
Exhibit J.

         "Governmental Authority" means the United States of America, any state
or other political subdivision thereof, and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of, or pertaining
to, government.

         "Highest Required Investment Category" means (i) with respect to
ratings assigned by Fitch (if such investment is rated by Fitch), F1+ for
short-term instruments and AAA for long-term instruments, (ii) with respect to
ratings assigned by Moody's, A2 or P-1 for one month instruments, A1 or P-1 for
three month instruments, Aa3 or P-1 for six month instruments and Aaa or P-1 for
instruments with a term in excess of six months and (iii) with respect to
ratings assigned by S&P, A-1+ for short-term instruments and AAA for long-term
instruments.

         "Holder" means with respect to a Note, the Person in whose name such
Note is registered in the Note Register.

                                       16

<PAGE>

         "Indebtedness" means, with respect to any Person at any date, (a) all
indebtedness of such person for borrowed money or for the deferred purchase
price of property or services (other than current liabilities incurred in the
ordinary course of business and payable in accordance with customary trade
practices) or that is evidenced by a note, bond, debenture or similar
instrument, (b) all obligations of such Person under capital leases, (c) all
obligations of such Person in respect of acceptances issued or created for the
account of such Person, and (d) all liabilities secured by any Lien on any
property owned by such Person even though such person has not assumed or
otherwise become liable for the payment thereof.

         "Indenture" means the Indenture, dated as of the date hereof, between
the Issuer and the Indenture Trustee.

         "Indenture Trustee" means the Person acting as Indenture Trustee under
the Indenture, its successors in interest and any successor trustee under the
Indenture.

         "Independent," when used with respect to any specified Person, means
such a Person who (i) is in fact independent of each of the Issuer or the
Servicer, (ii) is not a director, officer or employee of any Affiliate of any of
the Issuer or the Servicer, (iii) is not a person related to any officer or
director of any of the Issuer or the Servicer or any of their respective
Affiliates, (iv) is not a holder (directly or indirectly) of more than 10% of
any voting securities of any of the Issuer or the Servicer or any of their
respective Affiliates, and (v) is not connected with any of the Issuer or the
Servicer as an officer, employee, promoter, underwriter, trustee, partner,
director or person performing similar functions.

         "Independent Director" means a director of a corporation who shall at
no time be employed by, or hold any beneficial interest in any Affiliate of the
Issuer, and who shall at no time hold any beneficial interest in the Issuer.

         "Ineligible Contract" has the meaning specified in Section 11.01.

         "Initial Class A-1 Principal Amount" means $51,698,228.

         "Initial Class A-2 Principal Amount" means $38,294,984.

         "Initial Class A-3 Principal Amount" means $84,887,215.

         "Initial Class A-4 Principal Amount" means $37,529,084.

         "Initial Class B Principal Amount" means $10,722,596.

         "Initial Class C Principal Amount" means $10,850,245.

         "Initial Class D Principal Amount" means $13,658,544.

         "Initial Contracts" means those Contracts conveyed to the Issuer and
pledged to the Indenture Trustee on the Closing Date.

         "Initial Cutoff Date" means March 1, 2002.

                                       17

<PAGE>

         "Initial Principal Amount" means, when used in the context of a
reference to an individual Class of Notes, the initial class principal amount
applicable to such Class as defined above, and otherwise means, collectively,
the sum of the Initial Class A-1 Principal Amount, the Initial Class A-2
Principal Amount, the Initial Class A-3 Principal Amount, the Initial Class A-4
Principal Amount, the Initial Class B Principal Amount, the Initial Class C
Principal Amount and the Initial Class D Principal Amount i.e., $247,640,896.

         "Insolvency Event" means, with respect to a specified Person, (a) the
filing of a decree or order for relief by a court having jurisdiction in the
premises in respect of such Person or any substantial part of its property in an
involuntary case under any applicable Insolvency Law now or hereafter in effect,
or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator
or similar official for such Person or for any substantial part of its property,
or ordering the winding-up or liquidation of such Person's affairs, and such
decree or order shall remain unstayed or undismissed and in effect for a period
of 60 consecutive days; or (b) the commencement by such person of a voluntary
case under any applicable Insolvency Law now or hereafter in effect, or the
consent by such person to the entry of an order for relief in an involuntary
case under such law, taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official for such Person or for any
substantial part of this property, or the making by such Person of any general
assignment for the benefit of creditors, or the failure by such Person generally
to pay its debts as such debts become due, or the taking of action by such
Person in furtherance of any of the foregoing.

         "Insolvency Laws" means the Bankruptcy Code of the United States of
America and all other applicable liquidation, conservatorship, bankruptcy,
moratorium, rearrangement, receivership, insolvency, reorganization, suspension
of payments, or similar debtor relief laws from time to time in effect affecting
the rights of creditors generally.

         "Insolvency Proceeds" has the meaning specified in Section 10.01.

         "Insurance Policy" means, with respect to any Contract, an insurance
policy covering physical damage to or loss of the related Equipment.

         "Insurance Proceeds" means any amounts payable or any payments made to
the Servicer under any Insurance Policy.

         "Internal Revenue Code" means the Internal Revenue Code of 1986, as
amended from time to time.

         "Investment Earnings" means the investment earnings (net of losses and
investment expenses) on amounts on deposit in the Collection Account, the
Reserve Fund, the Residual Account and the Payahead Account, to be credited to
the Collection Account on each Payment Date pursuant to Section 7.03.

         "Late Charges" means any late payment fees paid by Obligors in
accordance with the Servicer's customary policies.

         "Lease" means each agreement and, as applicable, schedules,
subschedules, supplements and amendments to a master lease, pursuant to which
the Originator, as lessor, leased specified

                                       18

<PAGE>

assets to an Obligor at a specified monthly, quarterly, periodic (but in no
event less frequently than annually) or annual rental or pursuant to a similar
agreement for which the Originator is the assignee of a named lessor's rights.

         "Lien" means any mortgage, deed of trust, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or other), equity
interest, participation interest, preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever,
including, without limitation, any conditional sale or other title retention
agreement, and any financing lease having substantially the same economic effect
as any of the foregoing.

         "Liquidation Expenses" means, with respect to any Contract, the
aggregate amount of all out-of-pocket expenses reasonably incurred by the
Servicer (including amounts paid to any subservicer) in accordance with the
Servicer's customary procedures in connection with (i) the attempted collection
of any amount owing pursuant to such Contract if it is a Defaulted Contract and
(ii) the repossession, refurbishing and disposition of any related Equipment
upon or after the expiration or earlier termination of such Contract and other
out-of-pocket costs related to the liquidation of any such Equipment.

         "Liquidation Proceeds" means, with respect to a Defaulted Contract,
proceeds from the sale, lease or re-lease of the Equipment, proceeds of the
related Insurance Policy and any other recoveries with respect to such Defaulted
Contract and the related Equipment, net of Liquidation Expenses and amounts, if
any, so received that are required either to be refunded to the Obligor on such
Contract or paid to a third party other than the Originator.

         "List of Contracts" means the list identifying each Contract
constituting part of the Conveyed Assets, which list shall consist of the
initial List of Contracts reflecting the Initial Contracts transferred to the
Issuer on the Closing Date, together with any Subsequent List of Contracts
amending the most current List of Contracts reflecting the Substitute Contracts
transferred to the Issuer on the related Subsequent Transfer Date (together with
a deletion from such list of the related Contract or Contracts identified on the
corresponding Addition Notice with respect to which a Substitution Event has
occurred), and which list in each case (a) identifies by account number each
Contract included in the Contracts Pool, and (b) sets forth as to each such
Contract (i) the Principal Balance as of the applicable Cutoff Date, and (ii)
the maturity date, and which list (as in effect on the Closing Date) is attached
to this Agreement as Exhibit G.

         "Material Modification" means a termination or release (including
pursuant to prepayment), or an amendment, modification or waiver, or equivalent
similar undertaking or agreement, by the Servicer with respect to a Contract
that would not otherwise be permitted under the standards and criteria set forth
in Sections 5.08 and/or 5.09 hereof, as applicable.

         "Maturity Date" means, as applicable, the Class A-1 Maturity Date,
Class A-2 Maturity Date, Class A-3 Maturity Date, Class A-4 Maturity Date, Class
B Maturity Date, Class C Maturity Date or the Class D Maturity Date.

         "Monthly Delinquency Percentage" means with respect to any Payment
Date, the percentage equivalent of a fraction, (a) the numerator of which is the
contract balance remaining

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<PAGE>

of all Contracts (other than Defaulted Contracts) that are 31 days or more
delinquent as of the last day of the immediately preceding Collection Period,
and (b) the denominator of which is the aggregate contract balance remaining of
all Contracts (other than Defaulted Contracts) as of the last day of the
immediately preceding Collection Period.

         "Monthly Principal Amount" means, with respect to a Payment Date, the
excess, if any, of (i) the sum of the Aggregate Principal Amount of the Notes
and the Overcollateralization Balance both as of the immediately preceding
Payment Date (after making any principal payments on such date) over (ii) the
Pool Balance as of the last day of the Collection Period completed immediately
prior to such Payment Date.

         "Monthly Residual Realization Percentage" means with respect to any
Payment Date, the percentage equivalent of a fraction, (a) the numerator of
which is the cumulative amount of residual receipts collected on all Contracts
(other than with respect to Defaulted Contracts) as to which the Servicer,
during the related Collection Period, determined that the full amount of
residual receipts to be received with respect to the related Equipment has been
collected, and (b) the denominator of which is equal to the aggregate Booked
Residual Value (other than with respect to Defaulted Contracts) with respect to
such Contracts.

         "Monthly Report" has the meaning specified in Section 9.01.

         "Moody's" means Moody's Investors Service, Inc. or any successor
thereto.

         "Note" means any one of the notes of the Issuer of any Class executed
and authenticated in accordance with the Indenture.

         "Note Distribution Account" means the account established and
maintained as such pursuant to Section 7.01.

         "Noteholders" means the registered holders of the Notes.

         "Note Register" has the meaning given such term in Section 2.04 of the
Indenture.

         "Obligor" means, with respect to any Contract, the Person or Persons
obligated to make payments with respect to such Contract, including any
guarantor thereof.

         "Officer's Certificate" shall mean a certificate signed by any officer
of the Issuer or the Servicer and delivered to the Indenture Trustee and the
Issuer (if from the Servicer), as the case may be.

         "Opinion of Counsel" means a written opinion of counsel, who may be
outside counsel, or internal counsel (except with respect to federal securities
law (including the Trust Indenture Act) or tax law matters), for the Issuer or
the Servicer and who shall be reasonably acceptable to the Indenture Trustee, as
the case may be.

         "Original Pool Balance" means the aggregate Principal Balance of the
Contracts transferred to the Issuer as of March 1, 2002, equal to
$255,299,893.79.

                                       20

<PAGE>

         "Originator" means GreatAmerica Leasing Corporation, in its capacity as
Originator of a Contract under this Agreement (including in respect of a
Substitute Contract pursuant to a Subsequent Transfer Agreement).

         "Outstanding" has the meaning given such term in the Indenture.

         "Overcollateralization Balance" means, with respect to a Payment Date,
an amount equal to the excess, if any, of (i) the Pool Balance as of the last
day of the Collection Period completed immediately prior to such Payment Date
over (ii) the Outstanding Aggregate Principal Amount of the Notes as of such
date after giving effect to all principal payments made to the Noteholders on
such date.

         "Payahead" means with respect to a Contract, any early payment, other
than Prepayments, by or on behalf of Obligors that do not constitute Scheduled
Payments due in the current Collection Period.

         "Payahead Account" means the Payahead Account established and
maintained pursuant to Section 7.01 hereof.

         "Paying Agent" means as described in Section 3.03 of the Indenture.

         "Payment Date" shall mean the fifteenth day of each calendar month or,
if such fifteenth day is not a Business Day, the next succeeding Business Day,
with the first such Payment Date hereunder being April 15, 2002.

         "Permitted Liens" means (a) with respect to Contracts in the Contracts
Pool:

               (i) Liens for state, municipal and other local taxes if such
          taxes shall not at the time be due and payable or if the Issuer shall
          currently be contesting the validity thereof in good faith by
          appropriate proceedings,

               (ii) Liens in favor of the Issuer created by the Originator and
          transferred to the Indenture Trustee pursuant to the Indenture,

               (iii) Liens in favor of the Indenture Trustee created pursuant to
          this Agreement and/or the Indenture, and

               (iv) Liens in favor of the Indenture Trustee created pursuant to
          the Indenture and/or this Agreement;

and (b) with respect to the related Equipment:

               (i) materialmen's, warehousemen's, mechanics' and other liens
          arising by operation of law in the ordinary course of business for
          sums not due or sums that are being contested in good faith,

                                       21

<PAGE>

               (ii) Liens for state, municipal and other local taxes if such
          taxes shall not at the time be due and payable or if the Issuer shall
          currently be contesting the validity thereof in good faith by
          appropriate proceedings,

               (iii) Liens in favor of the Issuer created by the Originator and
          transferred by the Issuer to the Indenture Trustee pursuant to the
          Indenture,

               (iv) Liens in favor of the Indenture Trustee created pursuant to
          the Indenture and/or this Agreement.

         "Person" means any individual, corporation, estate, partnership,
business trust, limited liability company, sole proprietorship, joint venture,
association, joint stock company, trust (including any beneficiary thereof),
unincorporated organization or government or any agency or political subdivision
thereof or other entity.

         "Placement Agency Agreement" means, the Placement Agency Agreement,
dated as of March 22, 2002 between First Union Securities, Inc., as agent, the
Issuer and GreatAmerica Leasing Corporation.

         "Pledged Assets" means the assets pledged to the Indenture Trustee by
the Issuer pursuant to the Indenture.

         "Pool Balance" means, with respect to a Payment Date, an amount equal
to the aggregate remaining Principal Balance of the Contracts as of the last day
of the related Collection Period after giving effect to Defaulted Contracts,
Prepaid Contracts, Ineligible Contracts and Excess Contracts.

         "Prepaid Contract" means any Contract that has terminated or been
prepaid in full prior to its scheduled expiration date (including because of a
Casualty Loss), other than a Defaulted Contract.

         "Prepayment Amount" has the meaning specified in Section 5.09.

         "Prepayments" means any full prepayments on a Contract that expressly
permitted the related Obligor to make, in advance of its scheduled due date, and
any and all cash proceeds or rents realized from the sale, lease, re-lease or
re-financing of Equipment under a Prepaid Contract (net of Liquidation
Expenses), Liquidation Proceeds, amounts received in respect of Transfer Deposit
Amounts and payments upon an optional termination pursuant to Section 5.09.

         "Principal Amount" means, with respect to a Class of Notes, the
aggregate Initial Principal Amount thereof reduced by the aggregate amount of
any distributions applied in reduction of such principal amount.

         "Principal Balance" means, with respect to a Contract (i) as of the
related Cutoff Date, the present value of all the remaining Scheduled Payments
becoming due under such Contract after the applicable Cutoff Date (including
Payaheads) discounted monthly at the Discount Rate, unless another rate is
specifically mentioned and (ii) as of any other date of determination, the
present value of all of the remaining Scheduled Payments becoming due under such
Contract

                                       22
<PAGE>

after such date of determination (including Payaheads) discounted monthly at the
Discount Rate, unless another rate is specifically mentioned; except that a
Defaulted Contract or an Excess Contract shall have a Principal Balance of $0.
Contracts which have been prepaid or otherwise terminated or released from the
lien of the Indenture shall also have a Principal Balance of $0.

         "Prospectus" has the meaning given such term in the Underwriting
Agreement.

         "Purchase Order" means any agreement pursuant to which the Originator
invoices an Obligor at a specified periodic payment or rental for specified
Equipment.

         "Qualified Eligible Investments" means Eligible Investments acquired by
the Indenture Trustee in its name and in its capacity as Indenture Trustee at
the written direction of the Issuer, which are held by the Indenture Trustee in
the Collection Account, the Reserve Fund, the Residual Account or the Payahead
Account and with respect to which (a) the Indenture Trustee has noted its
interest therein on its books and records, and (b) the Indenture Trustee has
purchased such investments at the written direction of the Issuer for value
without notice of any adverse claim thereto (and, if such investments are
securities or other financial assets or interests therein, within the meaning of
Section 8-102 of the UCC as enacted in the State of New York, without acting in
collusion with a securities intermediary in violating such securities
intermediary's obligations to entitlement holders in such assets, under Section
8-504 of such UCC, to maintain a sufficient quantity of such assets in favor of
such entitlement holders), and (c) either (i) such investments are in the
possession of the Indenture Trustee, or (ii) such investments, (A) if
certificated securities and in bearer form, have been delivered to the Indenture
Trustee, or in registered form, have been delivered to the Indenture Trustee and
either registered by the issuer in the name of the Indenture Trustee or endorsed
by effective endorsement to the Indenture Trustee or in blank; (B) if
uncertificated securities, the ownership of which has been registered to the
Indenture Trustee on the books of the issuer thereof (or another person, other
than a securities intermediary, either becomes the registered owner of the
uncertified security on behalf of the Indenture Trustee or, having previously
become the registered owner, acknowledges that it holds for the Indenture
Trustee); or (C) if securities entitlements (within the meaning of Section 8-102
of the UCC as enacted in the State of New York) representing interests in
securities or other financial assets (or interests therein) held by a securities
intermediary (within the meaning of said Section 8-102), a securities
intermediary indicates by book entry that a security or other financial asset
has been credited to the Indenture Trustee's securities account with such
securities intermediary. Any such Qualified Eligible Investment may be purchased
by or through the Indenture Trustee or any of its Affiliates acting at the
written direction of the Issuer.

         "Qualified Institution" means (a) the corporate trust department of the
Indenture Trustee, or (b) a depository institution organized under the laws of
the United States of America or any one of the states thereof or the District of
Columbia (or any domestic branch of a foreign bank), (i) (A) which has either
(1) a long-term unsecured debt rating of AA- by each of S&P and Fitch and Aa3 by
Moody's, or (2) a short-term unsecured debt rating or certificate of deposit
rating of A-1+ by S&P, F1+ by Fitch and P-1 by Moody's, (B) the parent
corporation of which has either (1) a long-term unsecured debt rating of AA- by
each of S&P and Fitch and Aa3 by Moody's, or (2) a short-term unsecured debt
rating or certificate of deposit rating of A-1+ by S&P, F1+ by

                                       23

<PAGE>

Fitch and P-1 by Moody's, or (C) is otherwise acceptable to the Rating Agencies,
and (ii) whose deposits are insured by the FDIC and have a rating acceptable to
the Rating Agencies.

         "Rating Agency" means each of S&P, Fitch and Moody's, so long as such
Persons maintain a rating on the Notes; and if any of S&P, Fitch or Moody's no
longer maintains a rating on the Notes, such other nationally recognized
statistical rating organization selected by the Issuer.

         "Rating Agency Condition" means, with respect to any action or series
of related actions or any proposed transaction or series of related proposed
transactions, that each Rating Agency shall have notified the Issuer and the
Indenture Trustee in writing that such action or series of related actions or
the consummation of such proposed transaction or series of related transactions
will not result in a Ratings Effect.

         "Ratings Effect" means, with respect to any action or series of related
actions or any proposed transaction or series of related proposed transactions,
a reduction or withdrawal of the rating of any outstanding Class with respect to
which a Rating Agency has previously issued a rating as a result of such action
or series of related actions or the consummation of any such proposed
transaction or series of related transactions.

         "Record Date" means, with respect to a Payment Date, the Business Day
immediately preceding a Payment Date; provided, however, that if Definitive
Notes are issued, the Record Date shall be the last Business Day of the
preceding calendar month.

         "Recoveries" means any and all recoveries on account of a Defaulted
Contract, including, without limitation, any and all cash proceeds or rents
realized from the sale, lease, re-lease or re-financing of repossessed Equipment
or other property, Insurance Proceeds, but in each case net of reimbursable
collection expenses, Servicer Advances and Liquidation Expenses.

         "Released Amounts" means, with respect to any payment or collection
received with respect to any Contract on any Business Day (whether such payment
or collection is received by the Servicer or the Issuer), an amount equal to
that portion of such payment or collection constituting Excluded Amounts.

         "Required Holders" means Noteholders evidencing more than 66 2/3% of
the Aggregate Principal Amount of all Notes Outstanding.

         "Required Reserve Amount" means, with respect to a Payment Date, an
 amount equal to the greater of (i) 1.00% of the Original Pool Balance or (ii)
 1.50% of the Pool Balance.

         "Requirements of Law" for any Person means the certificate of
incorporation or articles of association and by-laws or other organizational or
governing documents of such Person, and any law, treaty, rule or regulation, or
order or determination of an arbitrator or Governmental Authority, in each case
applicable to or binding upon such Person or to which such Person is subject,
whether Federal, state or local (including, without limitation, usury laws, the
Federal Truth in Lending Act and Regulation Z and Regulation B of the Board of
Governors of the Federal Reserve System).

                                       24

<PAGE>

         "Reserve Fund" means the Reserve Fund established and maintained
pursuant to Section 7.01 hereof.

         "Reserve Fund Initial Deposit" means $2,552,999.

         "Residual Account" means the Residual Account established and
maintained pursuant to Section 7.01 hereof.

         "Residual Event" means the occurrence of one or more of the following:
(a) the occurrence of an Event of Default; (b) GreatAmerica Leasing Corporation
or a successor to GreatAmerica Leasing Corporation as described in Section
13.12(b) is no longer acting as the Servicer; (c) the Three-Month Residual
Realization Percentage on the related Determination Date is less than 85.00%
(unless such Three-Month Residual Realization Percentage has been less than
85.00% on any previous Determination Date, in which case the percentage for this
clause (c) shall be 100.00%); (d) the Three-Month Delinquency Percentage
calculated on the related Determination Date is greater than 6.00%; or (e) the
Cumulative Net Loss Percentage on the related Determination Date exceeds the
"loss trigger percentage" set forth below:

                                                                 LOSS TRIGGER
     COLLECTION PERIOD                                            PERCENTAGE

     1st through, and including, the 12th Collection Period:         3.40%
     13th through, and including, the 24th Collection Period:        5.00%
     25th Collection Period ongoing:                                 6.40%

         Notwithstanding the foregoing: (i) the Residual Event referred to in
clause (c) above may be cured on any Payment Date if the Three-Month Residual
Realization Percentage is greater than or equal to 100% for the related
Determination Date and the five immediately preceding Determination Dates, (ii)
the Residual Event referenced in clause (d) may be cured on any Payment Date if
the Three-Month Delinquency Percentage as of the end of the immediately
preceding Collection Period is less than or equal to 6.00% for the related
Determination Date and the two immediately preceding Determination Dates, (iii)
the Residual Event referenced in clause (e) may be cured if the Cumulative Net
Loss Percentage is less than the associated "loss trigger percentage" for the
related Determination Date and the two immediately preceding Determination
Dates.

         "Residual Receipts" means, with respect to any Contract, proceeds
realized from the sale or re-lease of the Equipment following the termination of
a Contract or from periodic payments made for the continued use of the Equipment
after the termination date of a Contract, other than any Equipment subject to
Defaulted Contracts or Contracts for which the Servicer has delivered a
Substitute Contract.

         "Responsible Officer" means, with respect to the Issuer, any officer of
the Issuer with direct responsibility for the administration of this Agreement
and also, with respect to a particular matter, any other officer to whom such
matter is referred because of such officer's knowledge of and familiarity with
the particular subject and with respect to the Indenture Trustee has the meaning
given to it in the Indenture.

                                       25

<PAGE>

         "S&P" means Standard & Poor's Ratings Group.

         "Scheduled Payment" means, with respect to any Contract, the monthly,
quarterly, periodic or annual rent or financing payment scheduled to be made by
the related Obligor under the terms of such Contract after the related Cutoff
Date and any such payment received after the related Cutoff Date, it being
understood that Scheduled Payments do not include any Excluded Amounts.

         "Secured Note" means each promissory note with a related security
interest evidenced by written agreement, pursuant to which the purchase of
specified assets by an Obligor is financed or provided as collateral security
for specified monthly, quarterly, periodic or annual payments.

         "Securities Act" means the Securities Act of 1933, as amended from time
to time.

         "Servicer" means initially GreatAmerica Leasing Corporation, or its
successor, until any Servicer Transfer hereunder and thereafter means the
Successor Servicer appointed pursuant to Article VIII below with respect to the
duties and obligations required of the Servicer under this Agreement.

         "Servicer Advance" means, with respect to any Payment Date, the
amounts, if any, deposited by the Servicer in the Collection Account for such
Payment Date in respect of Scheduled Payments pursuant to Section 5.14.

         "Servicer Default" shall have the meaning specified in Section 8.01.

         "Servicing Fee" has the meaning specified in Section 5.18.

         "Servicing Fee Percentage" means 0.75%.

         "Servicer Transfer" has the meaning assigned in Section 8.02(a).

         "Servicing Officer" means any officer of the Servicer involved in, or
responsible for, the administration and servicing of Contracts whose name
appears on a list of servicing officers appearing in an Officer's Certificate
furnished to the Indenture Trustee by the Servicer, as the same may be amended
from time to time.

         "Software Only Agreement" means any installment sales contract or
agreement pursuant to which the Originator finances the licensing of software
for an Obligor at a specified periodic payment.

         "Solvent" means, as to any Person at any time, that (a) the fair value
of the Property of such Person is greater than the amount of such Person's
liabilities (including disputed, contingent and unliquidated liabilities) as
such value is established and liabilities evaluated for purposes of Section
101(32) of the Bankruptcy Code; (b) the present fair saleable value of the
Property of such Person in an orderly liquidation of such Person is not less
than the amount that will be required to pay the probable liability of such
Person on its debts as they become absolute and matured; (c) such Person is able
to realize upon its Property and pay its debts and other liabilities (including
disputed, contingent and unliquidated liabilities) as they mature in the normal
course

                                       26

<PAGE>

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

         "Subsequent Cutoff Date" means the date specified as such for
Substitute Contracts in the related Subsequent Transfer Agreement.

         "Subsequent List of Contracts" means a list, in the form of the initial
List of Contracts delivered on the Closing Date, but listing each Substitute
Contract transferred to the Issuer pursuant to the related Subsequent Transfer
Agreement.

         "Subsequent Transfer Agreement" means, with respect to any Substitute
Contracts, the agreement between the Originator and the Issuer pursuant to which
the Originator will transfer the Substitute Contracts to the Issuer, the form of
which is attached to hereto as Exhibit I.

         "Subsequent Transfer Date" means any date on which Substitute Contracts
are transferred to the Issuer.

         "Substitute Contract" means a Contract that is (a) transferred to the
Issuer under Section 2.04 with respect to which a related Substitution Event has
occurred with respect to a Contract or Contracts then held in the Contracts Pool
and identified in the related Addition Notice and (b) becomes part of the
Contracts Pool.

         "Substitute Contract Qualification Conditions" means, with respect to
any Substitute Contract being transferred to the Issuer pursuant to Section
2.04, the accuracy of each of the following statements as of the related Cutoff
Date for such Contract:

         (a) the aggregate Principal Balance of such Substitute Contracts is not
less than that of the Contract or Contracts identified on the related Addition
Notice as the Contract or Contracts to be released by the Indenture Trustee to
the Issuer and reconveyed to the Originator in exchange for such Substitute
Contracts; and

         (b) the weighted average life of the Contracts Pool after giving effect
to all such substitutions will not be materially greater that the weighted
average life of the Contracts Pool prior to such substitutions;

         (c) the sum of the aggregate Principal Balance and the Booked Residual
Value on such Substitute Contracts is not materially less than the sum of the
aggregate Principal Balance and the Booked Residual Value on the Contract or
Contracts identified on the related Addition Notice as the Contract or Contracts
to be released by the Indenture Trustee to the Issuer and reconveyed to the
Originator in exchange for such Substitute Contract; and

         (d) if, instead of such Substitute Contract being added to the
Contracts Pool on the related Subsequent Transfer Date, such Substitute Contract
had instead been included in the Contracts Pool as of the Initial Cutoff Date,
and the related Contract or Contracts identified on the related Addition Notice
were not so included (and assuming such hypothetical inclusion satisfied the
criteria set forth in clause (a) and (b) above that would have been applicable
at such

                                       27

<PAGE>

time), the representations of the Originator set forth in Section
3.05(a)(i)-(xiv) concerning concentrations would not, as a result of such
inclusion, have become inaccurate or incorrect in any material respect;

         (e) no adverse selection procedure shall have been employed in the
selection of such Substitute Contract from the Originator's portfolio;

         (f) all actions or additional actions (if any) necessary to perfect the
security interest and assignment of such Substitute Contract and related
Equipment to the Issuer and Indenture Trustee shall have been taken as of or
prior to the Subsequent Transfer Date; and

         (g) the maturity date for the last Scheduled Payment due under such
Substitute Contract is not later than December, 2007.

         "Substitution Event" shall have occurred if one or more Contracts
pledged to the Indenture Trustee and identified in the related Addition Notice
is either (a) a Prepaid Contract, (b) a Defaulted Contract, (c) an Excess
Contract or (d) the subject of a breach of a representation or warranty under
this Agreement or other provision which breach or other provision, in the
absence of a substitution of a Substitute Contract for such Contract or
Contracts pursuant to Section 2.04, would require the payment of a Transfer
Deposit Amount to the Issuer in respect of such Contract pursuant to Section
11.01; provided, however, that no Substitution Event shall be deemed to occur
under clause (a) (if related to a Casualty Loss), (b), (c) or (d) to the extent
Contracts having initial aggregate Principal Balances of 10% or greater of the
Original Pool Balance have previously been substituted for under such clauses
and provided further, that no Substitution Event shall be deemed to occur under
clause (a) (other than related to a Casualty Loss), (c) or (d) to the extent the
Issuer has not consented to such substitution.

         "Successor Servicer" has the meaning given such term in Section
8.02(b).

         "Tax Opinion" means, with respect to any action, an Opinion of Counsel
to the effect that, for federal income tax purposes, (i) following such action
the Issuer will not be deemed to be an association (or publicly traded
partnership) taxable as a corporation and (ii) such action will not affect the
tax characterization as debt of Notes of any outstanding Class issued by the
Issuer for which an Opinion of Counsel has been provided that such Notes are
debt.

         "Three-Month Delinquency Percentage" means with respect to any Payment
Date commencing with the third Payment Date, the percentage equivalent of a
fraction, (a) the numerator of which is the sum of the Monthly Delinquency
Percentages for such Payment Date and the two immediately preceding Payment
Dates, and (b) the denominator of which is three.

         "Three-Month Residual Realization Percentage" means with respect to any
Payment Date commencing with the third Payment Date, the percentage equivalent
of a fraction, (a) the numerator of which is the sum of the Monthly Residual
Realization Percentage for such Payment Date and the two immediately preceding
Payment Dates and (b) the denominator of which is three.

         "Transaction Documents" means this Agreement, the Indenture, the
Custodian Agreement, the Placement Agency Agreement, any Subsequent Transfer
Agreement, the

                                       28

<PAGE>

Assignment, the Underwriting Agreement and any additional document the execution
of which is necessary or incidental to carrying out the terms of the transaction
contemplated by this Agreement.

         "Transfer Date" means the Business Day immediately preceding each
Payment Date.

         "Transfer Deposit Amount" means, with respect to each Ineligible
Contract or Excess Contract, on any date of determination, the sum of the
Principal Balances of such Contracts, the Booked Residual Value for each such
Contract and any related outstanding Servicer Advances thereon that have not
been waived by the Servicer entitled thereto.

         "Trust Account Property" means the Trust Accounts, all amounts and
investments held from time to time in any Trust Account (whether in the form of
deposit accounts, physical property, book-entry securities, uncertificated
securities or otherwise), including without limitation the Reserve Fund Initial
Deposit, and all proceeds of the foregoing.

         "Trust Accounts" means, collectively, the Collection Account, the
Reserve Fund, the Residual Account, the Payahead Account and the Note
Distribution Account, or any of them.

         "Trustee Cap" means with respect to any date of determination, the
lesser of (i) $200,000 and (ii) the product of (a) $10 and (b) the number of
Contracts in the Contracts Pool on such date.

         "UCC" means the Uniform Commercial Code as from time to time in effect
in the applicable jurisdiction or jurisdictions.

         "UCC Filing Locations" means the States of Delaware and Iowa.

         "Underwriting Agreement" means the Underwriting Agreement, dated March
22, 2002, among First Union Securities, Inc. (as an underwriter thereunder), the
Issuer, and GreatAmerica Leasing Corporation.

         "United States" means the United States of America.

         "Unreimbursed Servicer Advances" means, at any time, the amount of all
previous Servicer Advances (or portions thereof) as to which the Servicer has
not been reimbursed as of such time pursuant to Sections 7.01 or 7.05.

         "Vendor" means, with respect to a Contract, the equipment manufacturer,
dealer or distributor, or other Person that provided financing under such
Contract in connection with the acquisition or use by an Obligor of such party's
Equipment or other products.

         "Vendor Assignment" means each assignment agreement pursuant to which
an individual Contract originated by a Vendor is assigned to the Originator.

         "Vice President" of any Person means any vice president of such Person,
whether or not designated by a number or words before or after the title "Vice
President," who is a duly elected officer of such Person.

                                       29

<PAGE>

         SECTION 1.02.        USAGE OF TERMS.
                              --------------

         With respect to all terms in this Agreement, the singular includes the
plural and the plural the singular; words importing any gender include the other
genders; references to "writing" include printing, typing, lithography and other
means of reproducing words in a visible form; references to agreements and other
contractual instruments include all amendments, modifications and supplements
thereto or any changes therein entered into in accordance with their respective
terms and not prohibited by this Agreement; references to Persons include their
permitted successors and assigns; and the term "including" means "including
without limitation."

         SECTION 1.03.        SECTION REFERENCES.
                              ------------------

         All section references, unless otherwise indicated, shall be to
Sections in this Agreement.

         SECTION 1.04.        CALCULATIONS.
                              ------------

         Except as otherwise provided herein, all interest rate and basis point
calculations hereunder will be made on the basis of a 360-day year and twelve
30-day months and will be carried out to at least three decimal places.

         SECTION 1.05.        ACCOUNTING TERMS.
                              ----------------

         All accounting terms used but not specifically defined herein shall be
construed in accordance with generally accepted accounting principles in the
United States.

                                   ARTICLE II

                           TRANSFER OF CONTRACT ASSETS

         SECTION 2.01.        TRANSFER OF CONTRACT ASSETS.
                              ---------------------------

         (a) The Originator shall sell, assign and convey assets to the Issuer
pursuant to the terms and provisions hereof.

         (b) Subject to and upon the terms and conditions set forth herein, the
Originator hereby sells, transfers, assigns, sets over and otherwise conveys to
the Issuer, for a purchase price consisting of $246,667,926 in cash, all the
right, title and interest of the Originator in and to (items (i) - (vi) below,
being collectively referred to herein as the "Contract Assets"):

               (i) the Initial Contracts, and all monies received in payment of
          such Contracts on and after the Initial Cutoff Date, any Prepayment
          Amounts, any payments in respect of a casualty or early termination,
          and any Recoveries received with respect thereto, but excluding any
          Excluded Amounts;

               (ii) the Equipment related to such Contracts, including the
          security interest of the Originator in such Equipment and all proceeds
          from any sale or other disposition of such Equipment (but subject to
          the exclusion and release herein of Excluded Amounts);

                                       30

<PAGE>

               (iii) the Contract Files;

               (iv) all payments made or to be made in the future with respect
          to such Contracts or the Obligor thereunder under any Vendor
          Assignments and under any guarantee or similar credit enhancement with
          respect to such Contracts (other than Excluded Amounts) and all other
          rights under Vendor Assignments or other similar agreements;

               (v) all Insurance Proceeds with respect to each such Contract;
          and

               (vi) all income from and proceeds of the foregoing.

In addition to the Contract Assets, the Originator hereby sells, transfers,
assigns, sets over and otherwise conveys to the Issuer the remittances, deposits
and payments made into the Trust Accounts from time to time, amounts in the
Trust Accounts from time to time (and any investments of such amounts) and all
proceeds and products of the foregoing, which together with the Contract Assets
are referred to as the "Conveyed Assets").

         (c) The Originator and the Issuer acknowledge that the representations
and warranties of the Originator in Sections 3.01, 3.02, 3.03, 3.04 and 3.05
will run to and be for the benefit of the Indenture Trustee and the Noteholders
and the Indenture Trustee may enforce directly, without joinder of the Issuer,
the repurchase obligations of the Originator with respect to breaches of such
representations and warranties as set forth herein and in Section 11.01.

         (d) The sale, transfer, assignment, set-over and conveyance of the
Conveyed Assets by the Originator to the Issuer and by the Issuer to the
Indenture Trustee pursuant to this Agreement does not constitute and is not
intended to result in a creation or an assumption by the Issuer or the Indenture
Trustee of any obligation of the Originator in connection with the Contract
Assets, or any agreement or instrument relating thereto, including, without
limitation, any obligation to any Obligor, if any, not financed by the
Originator, or (1) any taxes, fees, or other charges imposed by any Governmental
Authority and (2) any insurance premiums that remain owing with respect to any
Contract at the time such Contract is sold hereunder.

         (e) The Originator and the Issuer intend and agree that (i) the
transfer of the Contract Assets to the Issuer are intended to be a sale,
conveyance and transfer of ownership of the Conveyed Assets rather than the mere
granting of a security interest to secure a borrowing and (ii) such Conveyed
Assets shall not be part of the Originator's estate in the event of a filing of
a bankruptcy petition or other action by or against such Person under any
Insolvency Law. In the event, however, that notwithstanding such intent and
agreement, such transfer is deemed to be of a mere security interest to secure
indebtedness, the Originator shall be deemed to have granted the Issuer a
perfected first priority security interest in such Conveyed Assets and this
Agreement shall constitute a security agreement under applicable law, securing
the repayment of the purchase price paid hereunder and the obligations and/or
interests represented by the Notes, in the order and priorities, and subject to
the other terms and conditions of, this Agreement and the Indenture, together
with such other obligations or interests as may arise hereunder and thereunder
in favor of the parties hereto and thereto.

                                       31

<PAGE>

         If any such transfer of the Contract Assets is deemed to be the mere
granting of a security interest to secure a borrowing, the Issuer may, to secure
the Issuer's own borrowing under the Indenture (to the extent that the transfer
of the Contract Assets thereunder is deemed to be a mere granting of a security
interest to secure a borrowing) repledge and reassign (1) all or a portion of
the Contract Assets pledged to the Issuer by the Originator and with respect to
which the Issuer has not released its security interest at the time of such
pledge and assignment, and (2) all proceeds thereof. Such repledge and
reassignment may be made by the Issuer with or without a repledge and
reassignment by the Issuer of its rights under any agreement with the
Originator, and without further notice to or acknowledgment from the Originator.
The Originator waives, to the extent permitted by applicable law, all claims,
causes of action and remedies, whether legal or equitable (including any right
of setoff), against the Issuer or any assignee of the Issuer relating to such
action by the Issuer in connection with the transactions contemplated by this
Agreement.

         SECTION 2.02.        CONDITIONS TO TRANSFER OF CONVEYED
                              ASSETS TO THE ISSUER.
                              ----------------------------------

         On or before the Closing Date, the Originator or the Issuer, as
applicable, shall deliver or cause to be delivered to the Indenture Trustee each
of the documents, certificates and other items as follows:

               (i) A certificate of an officer of the Originator substantially
         in the form of Exhibit C hereto;

               (ii) A certificate of an officer of the Issuer substantially in
         the form of Exhibit B hereto;

               (iii) Opinions of counsel for the Originator and the Issuer
         substantially in the form acceptable to the Underwriter and the Rating
         Agencies (and including as an addressee thereof each Rating Agency);

               (iv) Copies of resolutions of the Board of Directors of the
         Originator or of the Executive Committee of the Board of Directors of
         the Originator approving the execution, delivery and performance of
         this Agreement and the other Transaction Documents to which it is a
         party and the transactions contemplated hereunder and thereunder,
         certified in each case by the Secretary or an Assistant Secretary of
         the Originator;

               (v) Officially certified recent evidence of due incorporation and
         good standing of the Originator under the laws of Iowa;

               (vi) The initial List of Contracts, certified by the Chairman of
         the Board, President, Executive Vice President or any Vice President
         of the Originator, together with an Assignment substantially in the
         form of Exhibit A (along with the delivery of any instruments as
         required under Section 2.06 below);

               (vii) A letter from Deloitte & Touche LLP, or another nationally
         recognized accounting firm, addressed to the Originator and the
         Issuer, stating that such firm has reviewed a sample of the Initial
         Contracts and performed specific procedures for such

                                       32

<PAGE>

         sample with respect to certain contract terms and which identifies
         those Initial Contracts which do not conform;

               (viii) Copies of resolutions of the board of directors of the
         Issuer approving the execution, delivery and performance of this
         Agreement and the other Transaction Documents to which it is a party
         and the transactions contemplated hereunder and thereunder, certified
         in each case by the Secretary of the Issuer;

               (ix) Officially certified, recent evidence of due formation and
         good standing of the Issuer under the laws of Delaware;

               (x) Evidence of proper filing with appropriate offices in the UCC
         Filing Locations of UCC financing statements executed by the
         Originator, as debtor, naming the Issuer as secured party (and the
         Indenture Trustee as assignee) and identifying the Contract Assets as
         collateral; and evidence of proper filing with appropriate officer in
         the UCC Filing Locations of UCC financing statements executed by the
         Issuer, as debtor, naming the Indenture Trustee as secured party and
         identifying the Pledged Assets as collateral;

               (xi) An Officer's Certificate listing the Servicer's Servicing
         Officers;

               (xii) Evidence of deposit in the Collection Account of all funds
         received with respect to the Initial Contracts after the Initial
         Cutoff Date (other than Excluded Amounts) to the date two days
         preceding the Closing Date, together with an Officer's Certificate
         from the Servicer to the effect that such amount is correct;

               (xiii) Evidence of deposit in the Reserve Fund of the Reserve
         Fund Initial Deposit;

               (xiv) Evidence of deposit in the Payahead Account of Payaheads
         received with respect to the Initial Contracts after than the Initial
         Cutoff Date to the date two days preceding the Closing Date, together
         with an Officer's Certificate from the Servicer to the effect that
         such amount is correct;

               (xv) A fully executed Indenture;

               (xvi) A fully executed Custodian Agreement;

               (xvii) Opinions of Chapman and Cutler to the effect that for
         federal income tax purposes, the Class A Notes, Class B Notes, Class C
         Notes and the Class D Notes will be characterized as debt and the
         Issuer will not be characterized as an association (or publicly traded
         partnership) taxable as a corporation; and

               (xviii) An opinion of Chapman and Cutler to the effect that for
         Iowa tax purposes, the Issuer will not be subject to the Business Tax
         on Corporations imposed by the State of Iowa under Chapter 422.32 of
         the Iowa Code or to the Iowa Business Corporation Act under Chapter
         490.101 of the Iowa Code and Noteholders that are not

                                       33

<PAGE>

         otherwise subject to income taxation by the State of Iowa will not
         become subject to income taxation by the State of Iowa solely as a
         result of their ownership of Notes.

         SECTION 2.03.        ACCEPTANCE BY ISSUER.
                              --------------------

         On the Closing Date, if the conditions set forth in Section 2.02 have
been satisfied, the Issuer shall issue, and the Indenture Trustee shall
authenticate, to, or upon the order of, the Issuer the Notes secured by the
Collateral. The Issuer hereby acknowledges its acceptance of the Conveyed
Assets, and declares that it shall maintain such right, title and interest in
accordance with the terms of this Agreement and the Indenture.

         SECTION 2.04.        CONVEYANCE OF SUBSTITUTE CONTRACTS.
                              ----------------------------------

         (a) Subject to Sections 2.01(d) and (e) above and the satisfaction of
the conditions set forth in paragraph (b) below, at the option of the Issuer,
the Originator may at its option (but shall not be obligated to) sell, transfer,
assign, set over and otherwise convey to the Issuer (by delivery of an executed
Subsequent Transfer Agreement substantially in the form attached as Exhibit I
hereto), without recourse other than as expressly provided herein and therein
(and the Issuer shall be required to purchase through payment by exchange of one
or more related Contracts released by the Indenture Trustee to the Issuer on the
Subsequent Transfer Date), all the right, title and interest of the Originator
in and to (the property in clauses (i)-(vi) below, upon such transfer, becoming
part of the "Contract Assets"):

                  (i) the Substitute Contracts identified in the related
         Addition Notice, and all monies received in payment of such Substitute
         Contracts on and after the related Subsequent Cutoff Dates, any
         Prepayment Amounts, any payments in respect of a Casualty Loss or early
         termination, and any Recoveries received with respect thereto, but
         excluding any Excluded Amounts;

                  (ii) the Equipment related to such Contracts, including the
         security interest of the Originator in such Equipment and all proceeds
         from any sale or other disposition of such Equipment (but subject to
         the exclusion and release herein of Excluded Amounts);

                  (iii) the Contract Files;

                  (iv) all payments made or to be made in the future with
         respect to such Contracts or the Obligor thereunder under any Vendor
         Assignments with the Originator and under any guarantee or similar
         credit enhancement with respect to such Contracts (other than Excluded
         Amounts);

                  (v)  all Insurance Proceeds with respect to each such
         Contract; and

                  (vi) all income from and proceeds of the foregoing.

         (b) The Originator shall transfer to the Issuer the Substitute
Contracts and the other property and rights related thereto described in
paragraph (a) above only upon the satisfaction of each of the following
conditions on or prior to the related Subsequent Transfer Date (and the delivery
of a related Addition Notice by the Originator shall be deemed a representation
and

                                       34

<PAGE>

warranty by the Originator, that such conditions have been or will be, as of
the related Subsequent Transfer Date, satisfied):

                  (i) the Originator shall have provided the Issuer and the
         Indenture Trustee with a timely Addition Notice complying with the
         definition thereof contained herein, which notice shall in any event be
         no later than three days prior to the date of addition;

                  (ii) there shall have occurred, with respect to each such
         Substitute Contract, a corresponding Substitution Event with respect to
         one or more Contracts then in the Contracts Pool;

                  (iii) the Substitute  Contracts  being conveyed to the Issuer
         satisfy the Substitute  Contract Qualification Conditions;

                  (iv) the Originator shall have delivered to the Issuer a duly
         executed written assignment in substantially the form of Exhibit I
         hereto (the "Subsequent Transfer Agreement"), which shall include a
         Subsequent List of Contracts listing the Substitute Contracts;

                  (v) the Originator shall have deposited or caused to be
         deposited in the Collection Account all Collections received with
         respect to the Substitute Contracts on or after the related Subsequent
         Cutoff Date;

                  (vi) as of each Subsequent Transfer Date, neither the
         Originator nor the Issuer was insolvent nor will either of them have
         been made insolvent by such transfer nor is either of them aware of any
         pending insolvency;

                  (vii) no selection procedures believed by the Originator or
         the Issuer to be adverse to the interests of the Noteholders shall have
         been utilized in selecting the Substitute Contracts;

                  (viii) each of the representations and warranties made by the
         Originator pursuant to Sections 3.02, and 3.04 applicable to the
         Substitute Contracts shall be true and correct as of the related
         Subsequent Transfer Date (provided that, with respect to clause (d) of
         the definition of Substitute Contract Qualification Conditions, the
         representations with respect to geographical diversity shall not apply)
         and the Originator shall have performed all obligations to be performed
         by it hereunder on or prior to such Subsequent Transfer Date;

                  (ix) the Originator shall, at its own expense, on or prior to
         the Subsequent Transfer Date, indicate in its Computer Records that
         ownership of the Substitute Contracts identified on the Subsequent List
         of Contracts in the Subsequent Transfer Agreement has been sold to the
         Issuer and pledged to the Indenture Trustee pursuant to this Agreement
         and the Indenture;

                  (x) the aggregate Principal Balance of all Substitute
         Contracts that shall be substituted for Prepaid Contracts that relate
         to a Casualty Loss, Defaulted Contracts,

                                       35

<PAGE>

         Excess Contracts or a Contract that is the subject of a breach of
         representation or warranty cannot exceed 10% of the Original Pool
         Balance.

         SECTION 2.05.        RELEASE OF RELEASED AMOUNTS.
                              ---------------------------

         (a) The Indenture Trustee hereby agrees to release to the Issuer from
the Pledged Assets an amount equal to the Released Amounts immediately upon
identification thereof and upon receipt of an Officer's Certificate of the
Servicer, which release shall be automatic and shall require no further act by
the Indenture Trustee, provided that the Indenture Trustee shall execute and
deliver such instruments of release and assignment, or otherwise confirm the
foregoing release, as may reasonably be requested by (and at the expense of the
Servicer) the Issuer in writing and prepared by the Servicer. Upon such release,
such Released Amounts shall not constitute and shall not be included in the
Pledged Assets.

         (b) Immediately upon the release to the Issuer by the Indenture Trustee
of the Released Amounts, the Issuer hereby irrevocably agrees to release to the
Originator such Released Amounts, which release shall be automatic and shall
require no further act by the Issuer, provided that the Issuer shall execute and
deliver such instruments of release and assignment, or otherwise confirming the
foregoing release of any Excluded Amounts, as may be reasonably requested by the
Originator.

         SECTION 2.06.        INSTRUMENTS.
                              -----------

         The Originator and the Issuer shall identify on the List of Contracts
(including any deemed amendment thereof associated with any Substitute
Contracts), whether by attached schedule or marking or other effective
identifying designation, all Contracts that are or are evidenced by instruments.

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

         The Originator makes, and upon execution of each Subsequent Transfer
Agreement is deemed to make, the following representations and warranties, on
which the Issuer will rely in pledging the Pledged Assets on the Closing Date
(and on any Subsequent Transfer Date) to the Indenture Trustee, and on which the
Indenture Trustee and the Noteholders will rely. The Issuer acknowledges that
such representations and warranties are being made by the Originator for the
benefit of the Indenture Trustee on behalf of the Noteholders.

         Such representations and warranties speak as of the execution and
delivery of this Agreement and as of the Closing Date (or Subsequent Transfer
Date, as applicable), but shall survive the pledge, transfer and assignment of
the Contract Assets to the Indenture Trustee on behalf of the Noteholders. The
repurchase obligation or substitution obligation of the Originator set forth in
Section 11.01 constitutes the sole remedies available for a breach of a
representation or warranty of the Originator set forth in Sections 3.01, 3.02,
3.03, 3.04 or 3.05 of this Agreement. Notwithstanding the foregoing, the
Originator shall not be deemed to be remaking any of the representations set
forth in Section 3.03 or 3.05 on a Subsequent Transfer Date with respect to the
Substitute Contracts, as such representations relate solely to the composition
of the

                                       36

<PAGE>

Initial Contracts conveyed on the Closing Date, provided that any inaccurate
representation as to concentrations contained in any Addition Notice shall be
subject to the same remedies hereunder as if such representation were made under
Section 3.05 on the Closing Date with respect to an Initial Contract.

         SECTION 3.01.        REPRESENTATIONS AND WARRANTIES REGARDING THE
                              ORIGINATOR.
                              --------------------------------------------

         By its execution of this Agreement and each Subsequent Transfer
Agreement, the Originator represents and warrants that:

         (a) Organization and Good Standing. The Originator is a corporation
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization and has the requisite corporate power to own or
lease its assets and to transact the business in which it is currently engaged.
The Originator is duly qualified to do business as a foreign corporation and is
in good standing in each jurisdiction in which the character of the business
transacted by it or properties owned or leased by it requires such qualification
and in which the failure so to qualify would have a material adverse effect on
the business, properties, assets, or condition (financial or otherwise) of the
Originator or the Issuer. The Originator is properly licensed in each
jurisdiction to the extent required by the laws of such jurisdiction in order to
originate, and (if the Originator is to be the Servicer) service the Contracts
in accordance with the terms of this Agreement.

         (b) Authorization; Binding Obligation. The Originator has the power and
authority to make, execute, deliver and perform this Agreement and the other
Transaction Documents to which the Originator is a party and all of the
transactions contemplated under this Agreement and the other Transaction
Documents to which the Originator is a party, and has taken all necessary
corporate action to authorize the execution, delivery and performance of this
Agreement and the other Transaction Documents to which the Originator is a
party. This Agreement and the other Transaction Documents to which the
Originator is a party constitute the legal, valid and binding obligation of the
Originator enforceable in accordance with their terms, except as enforcement of
such terms may be limited by bankruptcy, insolvency or similar laws affecting
the enforcement of creditors' rights generally and by the availability of
equitable remedies.

         (c) No Consent Required. The Originator is not required to obtain the
consent of any other party or any consent, license, approval or authorization
from, or registration or declaration with, any governmental authority, bureau or
agency in connection with the execution, delivery, performance, validity or
enforceability of this Agreement and the other Transaction Documents to which
the Originator is a party.

         (d) No Violations. The Originator's execution, delivery and performance
of this Agreement and the other Transaction Documents to which the Originator is
a party will not violate any provision of any existing law or regulation or any
order or decree of any court or the Certificate of Incorporation or Bylaws of
the Originator, or constitute (with or without notice or lapse of time or both)
a material breach of any mortgage, indenture, contract or other agreement to
which the Originator is a party or by which the Originator or any of the
Originator's properties may be bound.

                                       37
<PAGE>

         (e) Litigation. No litigation or administrative proceeding of or before
any court, tribunal or governmental body is currently pending, or to the
knowledge of the Originator, threatened, against the Originator or any of its
respective properties or with respect to this Agreement or any other Transaction
Document to which the Originator is a party that, if adversely determined, would
have a material adverse effect on the business, properties, assets or condition
(financial or other) of the Originator or the transactions contemplated by this
Agreement or any other Transaction Document to which the Originator is a party.

         (f) Place of Business; No Changes; No Trade Names. The Originator's
sole place of business or chief executive office (within the meaning of Article
9 of the UCC) is as set forth in Section 13.04 below. The Originator's state of
incorporation is Iowa. The Originator has not changed its name as set forth
herein, whether by amendment of its Certificate of Incorporation, by
reorganization or otherwise, and has not changed the location of its chief
executive office, within the four months preceding the Closing Date (or
Subsequent Transfer Date, as applicable, except in accordance with the
requirements of Section 4.03). The legal name of the Originator is as set forth
in this Agreement and, within the five years preceding the Closing Date, the
Originator has not used, and currently does not use, any trade names, fictitious
names, assumed names, or "doing business as" names.

         (g) No Bulk Sales. The execution, delivery and performance of this
Agreement by the Originator does not require compliance with any "bulk sales"
laws by the Originator.

         (h) Solvency. The Originator on each date of and, after giving effect
to the transfer of the Contracts and any Substitute Contracts, as the case may
be, to the Issuer pursuant to the transfer agreement, dated as of the date
hereof, between the Originator and the Issuer, is Solvent.

         (i) Use of Proceeds. No proceeds of the sale of any Initial Contract or
Substitute Contract hereunder received by the Originator will be used by the
Originator to purchase or carry any "margin stock" as such term is defined in
Regulation T, U or X of the Board of Governors of the Federal Reserve System.

         (j) Not an Investment Company. The Originator is not an "investment
company" (and does not control, and is not under the control of, an investment
company) within the meaning of the Investment Company Act of 1940, as amended
(or the Originator is exempt from all provisions of such Act).

         (k) Membership Interests.  GreatAmerica is the sole equity member of
the Issuer.

         (l) Taxes. (i) the Originator has filed all tax returns required to be
filed in the normal course of its business and has paid or made adequate
provisions for the payment of all taxes, assessments and other governmental
charges due from the Originator or is contesting any such tax, assessment or
other governmental charge in good faith through appropriate proceedings, (ii) no
tax lien has been filed with respect thereto, and (iii) no claim is being
asserted with respect to any such tax, fee or other charge.

         (m) ERISA Plan. The Originator has fully funded any required
contribution to any "employee pension benefit plan" as such term is defined in
Section 3(2) of ERISA.

                                       38

<PAGE>

         (n) Sale Treatment. The Originator has treated the transfer of Contract
Assets to the Issuer for all purposes (including financial accounting purposes)
as a sale and purchase on all of its relevant books, records, financial
statements and other applicable documents, and such transfer will be treated as
a valid sale and transfer of the Contracts and the related Equipment to the
Issuer.

         (o) Marking of Files. The Originator will have, at its own expense,
within two Business Days after the Closing Date (i) indicated in its Computer
Records that ownership of the Contracts transferred by it to the Issuer and
identified on the List of Contracts have been sold to the Issuer and (ii)
affixed to the original copy of each Contract (including each note or
instrument) the following legend:

                  This Contract/Note is subject to a security interest granted
                  to JPMorgan Chase Bank, as Indenture Trustee, or its assignee,
                  on behalf of certain Holders of Notes issued by GreatAmerica
                  Leasing Receivables 2002-1, L.L.C. UCC-1 Financing Statements
                  covering this Contract/Note have been filed with the
                  Secretaries of State of both the State of Iowa and the State
                  of Delaware. Such lien will be released only in connection
                  with appropriate filings in such offices. Consequently,
                  potential purchasers of this Contract/Note must refer to such
                  filings to determine whether such lien has been released.

         (p) Security Interest. The Originator has granted a security interest
(as defined in the UCC) to the Issuer, in the Contract Assets, which is
enforceable in accordance with applicable law upon execution and delivery of
this Agreement. Upon the filing of UCC-1 financing statements naming the Issuer
as secured party and the Originator as debtor, the Issuer shall have a first
priority perfected security interest in the Contract Assets (except for any
Permitted Liens). All filings (including, without limitation, such UCC filings)
as are necessary in any jurisdiction to perfect the interest of the Issuer in
the Contract Assets have been made.

         (q) Security Interest in Equipment. The Issuer has a perfected security
interest in the Equipment and, upon the sale, transfer and assignment of the
Contract Assets hereunder, the Indenture Trustee will have a perfected security
interest in the Equipment.

         (r) Title. If a Contract is a lease of Equipment subject to certificate
of title statutory requirements, the title is held either in the name of the
Obligor and the certificate of title indicates the Originator as lienholder or
in the name of the Originator as lessor.

         (s) Selection Procedures. No selection procedures determined by the
Originator to be materially adverse to the interests of the Issuer or the
Noteholders were utilized by the Originator in selecting the Contracts to be
sold, assigned, transferred, set-over and otherwise conveyed hereunder.

         (t) No Liens. The Issuer owns each Conveyed Asset to be sold by it
hereunder free and clear of any Liens except as provided herein, and upon the
sale, transfer or assignment hereunder, the Issuer shall (i) become the owner of
each Contract Asset then existing or thereafter arising, free and clear of any
Lien except as provided herein or in the Indenture or

                                       39

<PAGE>

(ii) acquire a first priority perfected security interest in such Conveyed
Asset; provided, however, that the security interest in the Equipment will only
be perfected if the purchase price paid by the Originator to acquire such of
Equipment is $25,000 or more and where the Obligor was rated below (1) Baa3 or
better by Moody's, (2) BBB or better by S&P or (3) 3A2 or better by Dun &
Bradstreet. No effective financing statement or other instrument similar in
effect covering any Contract Asset or the Collections with respect thereto shall
at any time be on file in any recording office except such as may be filed in
favor of the Issuer relating to this Agreement or otherwise as provided under
the this Agreement or the Indenture.

         (u) Separate Entity. The Originator is an entity with assets and
liabilities distinct from those of the Issuer, and any Affiliates thereof, and
the Issuer hereby acknowledges that the parties hereto are entering into the
transactions contemplated by this Agreement and the other Transaction Documents
in reliance upon the Originator's identity as a separate legal entity from the
Issuer and from each such Affiliate of the Issuer.

         (v) Value Given. The cash payments received by the Originator in
respect of the purchase price of each Contract Asset sold hereunder constitutes
reasonably equivalent value in consideration for the transfer to the Issuer of
such Contract Asset under this Agreement, such transfer was not made for or on
account of an antecedent debt owed by the Originator to the Issuer, and such
transfer was not and is not voidable or subject to avoidance under any
Insolvency Law.

         (w) No liens. The Originator will not sell, pledge, assign, transfer or
grant any lien on the Contracts or its interest in the Equipment, except for
Permitted Liens.

         SECTION 3.02.        REPRESENTATIONS  AND WARRANTIES  REGARDING EACH
                              CONTRACT AND AS TO CERTAIN CONTRACTS IN THE
                              AGGREGATE.
                              -----------------------------------------------

         The Originator represents and warrants as of the Closing Date, and as
of each Subsequent Transfer Date with respect to each Substitute Contract, that:

         (a) List of Contracts. The information set forth in the List of
Contracts (as the same may be amended or deemed amended in respect of a
conveyance of Substitute Contracts on a Subsequent Transfer Date) is true,
complete and correct as of the applicable Cutoff Date.

         (b) Eligible Contract. Such Contract satisfies the criteria for the
definition of Eligible Contract set forth in this Agreement as of the date of
its conveyance hereunder.

         (c) No Fraud. Each Contract was originated without any fraud or
material misrepresentation by the Originator or, to the best of the Originator's
knowledge, on the part of the Obligor or the Vendor.

         (d) Contracts Secured by Fixtures. No material portion of the aggregate
Principal Balance of the Contracts Pool consists of Contracts secured by
Equipment constituting fixtures.

         (e) Contracts Secured by Other Real Property. No material portion of
the aggregate Principal Balance of the Contracts Pool consists of Contracts
additionally secured by other real property (exclusive of or in addition to
Equipment constituting fixtures).

                                       40

<PAGE>

         SECTION 3.03.        REPRESENTATIONS AND WARRANTIES REGARDING THE
                              INITIAL CONTRACTS IN THE AGGREGATE.
                              --------------------------------------------

         The Originator represents and warrants, as of the Closing Date, that:

         (a) Amounts. The Original Pool Balance of the Contracts as of the
Initial Cutoff Date equals the sum of the principal balance of the Class A-1
Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class
B Notes, the Class C Notes and the Class D Notes on the Closing Date plus the
Overcollateralization Balance.

         (b) Characteristics. The Initial Contracts have the following
additional characteristics: (i) no Contract has a remaining maturity of more
than 71 months; (ii) the final scheduled Payment Date on the Contract with the
latest maturity is not later than December, 2007; (iii) no Contract was
originated after the Initial Cutoff Date; (iv) not more than 3.10% of the
Initial Contracts (as measured by the Original Pool Balance) provide for
Scheduled Payments due on a basis other than monthly.

         SECTION 3.04.        REPRESENTATIONS AND WARRANTIES REGARDING THE
                              CONTRACT FILES.
                              --------------------------------------------

         The Originator represents and warrants as of the Closing Date with
respect to the Initial Contracts (or as of the Subsequent Transfer Date, with
respect to Substitute Contracts), that (i) immediately prior to such date (as
applicable), the Originator had possession of each original Contract and the
related complete Contract File, and there were no other custodial agreements
relating to the same in effect; (ii) each of such documents that is required to
be signed by the Obligor has been signed by the Obligor in the appropriate
spaces; (iii) all blanks on any form have been properly filled in and each form
has otherwise been correctly prepared; and (iv) the complete Contract File for
each Contract is in the possession of the Servicer.

         SECTION 3.05.        REPRESENTATIONS AND WARRANTIES REGARDING
                              CONCENTRATIONS OF INITIAL CONTRACTS.
                              ----------------------------------------

         The Originator represents and warrants as of the Closing Date, as to
the composition of the Initial Contracts in the Contracts Pool as of the Initial
Cutoff Date, that:

                  (i) the aggregate Principal Balance of all Contracts with
         Obligors who finance, lease or are related to Equipment used in the
         services industry does not exceed 48.00% of the aggregate Principal
         Balance of the Contracts Pool;

                  (ii) the aggregate Principal Balance of all Contracts with
         Obligors who comprise the ten (10) largest Obligors measured by
         Principal Balance does not exceed 2.50% of the aggregate Principal
         Balance of the Contracts Pool;

                  (iii) the aggregate Principal Balance of all Contracts of each
         Obligor or affiliated group of Obligors shall not exceed 0.35% of the
         aggregate Principal Balance of the Contracts Pool;

                                       41

<PAGE>

                  (iv) the aggregate Principal Balance of all Contracts with
         Obligors located in a single State of the United States does not exceed
         10.00% of the aggregate Principal Balance of the Contracts Pool;

                  (v) the aggregate Principal Balance of all Contracts with
         Obligors who are the United States or any other state or local
         government or any agency, department, subdivision, or instrumentally of
         any such government does not exceed 3.85% of the aggregate Principal
         Balance of the Contracts Pool;

                  (vi) the aggregate Principal Balance of all Contracts that are
         true leases and ten percent purchase option leases shall not be less
         than 35.00% of the aggregate Principal Balance of the Contracts Pool;

                  (vii) the aggregate Principal Balance of all Purchase Orders
         does not exceed 0.25% of the aggregate Principal Balance of the
         Contracts Pool;

                  (viii) the aggregate Principal Balance of all Contracts that
         are Software Only Agreements does not exceed 1.75% of the aggregate
         Principal Balance of the Contracts Pool;

                  (ix) the aggregate Principal Balance of all Contracts that
         relate to titled vehicles does not exceed 0.21% of the aggregate
         Principal Balance of the Contracts Pool.

                  (x)  the aggregate Principal Balance of all Contracts with
         quarterly payments does not exceed 0.57% of the aggregate Principal
         Balance of the Contracts Pool;

                  (xi) the aggregate Principal Balance of all Contracts with
         annual payments does not exceed 0.26% of the aggregate Principal
         Balance of the Contracts Pool;

                  (xii) the aggregate Principal Balance of all Contracts with
         variable payments does not exceed 0.80% of the aggregate Principal
         Balance of the Contracts Pool;

                  (xiii) the aggregate Principal Balance of all Contracts with
         skip payments does not exceed 0.07% of the aggregate Principal Balance
         of the Contracts Pool; and

                  (xiv) the aggregate Principal Balance of all Contracts with
         balloon payments does not exceed 1.40% of the aggregate Principal
         Balance of the Contracts Pool.

         SECTION 3.06.      REPRESENTATIONS AND WARRANTIES REGARDING THE ISSUER.
                            --------------------------------------------------
         By its execution of this Agreement and each Subsequent Transfer
Agreement, the Issuer represents and warrants to the Indenture Trustee and the
Noteholders that:

         (a) Confirmation of the Originator's Representations and Warranties.
The representations and warranties set forth in Section 3.01, Section 3.02,
Section 3.03, Section 3.04 and Section 3.05 of this Agreement are true and
correct.

                                       42

<PAGE>

         (b) Organization and Good Standing. The Issuer is duly organized,
validly existing and in good standing under the laws of Delaware and has the
requisite power to own its assets and to transact the business in which it is
currently engaged. The Issuer is duly qualified to do business and is in good
standing in each jurisdiction in which the character of the business transacted
by it or properties owned or leased by it requires such qualification and in
which the failure so to qualify would have a material adverse effect on the
business, properties, assets, or condition (financial or other) of the Issuer.

         (c) Authorization; Valid Pledge; Binding Obligations. The Issuer has
the power and authority to make, execute, deliver and perform this Agreement and
the other Transaction Documents to which it is a party and all of the
transactions contemplated under this Agreement and the other Transaction
Documents to which it is a party and cause it to make, execute, deliver and
perform its obligations under this Agreement and the other Transaction Documents
to which it is a party and has taken all necessary corporate action to authorize
the execution, delivery and performance of this Agreement and the other
Transaction Documents to which it is a party. The Indenture shall effect a valid
grant, transfer, assignment and conveyance of the Pledged Assets from the Issuer
to the Indenture Trustee, enforceable against the Issuer and creditors of and
purchasers from the Issuer. This Agreement and the other Transaction Documents
to which the Issuer is a party constitute the legal, valid and binding
obligation of the Issuer enforceable in accordance with their terms, except as
enforcement of such terms may be limited by bankruptcy, insolvency or similar
laws affecting the enforcement of creditors' rights generally and by the
availability of equitable remedies.

         (d) No Consent Required. The Issuer is not required to obtain the
consent of any other party or any consent, license, approval or authorization
from, or registration or declaration with, any Governmental Authority in
connection with the execution, delivery, performance, validity or enforceability
of this Agreement or the other Transaction Documents to which it is a party.

         (e) No Violations. The execution, delivery and performance of this
Agreement and the other Transaction Documents to which it is a party by the
Issuer, and the consummation of the transactions contemplated hereby and
thereby, will not violate any Requirement of Law applicable to the Issuer, or
constitute a material breach of any mortgage, indenture, contract or other
agreement to which the Issuer is a party or by which the Issuer or any of the
Issuer's properties may be bound, or result in the creation or imposition of any
security interest, lien, charge, pledge, preference, equity or encumbrance of
any kind upon any of its properties pursuant to the terms of any such mortgage,
indenture, contract or other agreement, other than as contemplated by the
Transaction Documents.

         (f) Litigation. No litigation or administrative proceeding of or before
any court, tribunal or governmental body is currently pending, or to the
knowledge of the Issuer threatened, against the Issuer or any of its properties
or with respect to this Agreement, the other Transaction Documents to which it
is a party or the Notes (1) that, if adversely determined, would in the
reasonable judgment of the Issuer have a material adverse effect on the
business, properties, assets or condition (financial or otherwise) of the Issuer
or the transactions contemplated by this Agreement or the other Transaction
Documents to which the Issuer is a party or (2) seeking to adversely affect the
federal income tax or other federal, state or local tax attributes of the Notes.

                                       43

<PAGE>

         (g) Bulk Sales. The execution, delivery and performance of this
Agreement do not require compliance with any "bulk sales" laws by the Issuer.

         (h) Solvency. The Issuer, at the time of and after giving effect to
each conveyance of Pledged Assets under the Indenture, is Solvent on and as
of the date thereof.

         (i) Taxes. The Issuer has filed or caused to be filed all tax returns
which, to its knowledge, are required to be filed and has put all taxes shown to
be due and payable on such returns or on any assessments made against it or any
of its property and all other taxes, fees or other charges imposed on it or any
of its property by any Governmental Authority (other than any amount of tax due,
the validity of which is currently being contested in good faith by appropriate
proceedings and with respect to which reserves in accordance with generally
accepted accounting principles have been provided on the books of the Issuer);
no tax lien has been filed and, to the Issuer's knowledge, no claim is being
asserted, with respect to any such tax, fee or other charge.

         (j) Place of Business; No Changes. The Issuer's sole place of business
(within the meaning of Article 9 of the UCC) is as set forth in Section 13.04
below and its state of formation in Delaware. The Issuer has not changed its
name, whether by amendment of its certificate of formation, by reorganization or
otherwise, and has not changed the location of its place of business or its
state of formation, within the four months preceding the Closing Date.

         (k) Not an Investment Company. The Issuer is not an "investment
company" (and does not control, and is not under the control of, an investment
company) within the meaning of the Investment Company Act of 1940, as amended
(or the Issuer is exempt from all provisions of such act).

         (l) Sale Treatment. The Issuer has treated the transfer of Contract
Assets from the Originator for all purposes (including financial accounting
purposes) as a sale and purchase on all of its relevant books, records,
financial statements and other applicable documents.

         (m) Security Interest. The Issuer has granted a security interest (as
defined in the UCC) to the Indenture Trustee in the Pledged Assets that is
enforceable in accordance with applicable law upon execution and delivery of the
Indenture. Upon the filing of UCC-1 financing statements naming the Indenture
Trustee as secured party and the Issuer as debtor, the Indenture Trustee shall
have a first priority perfected security interest in the Pledged Assets (except
for Permitted Liens). All filings (including, without limitation, such UCC
filings) as are necessary in any jurisdiction to perfect the interest of both
the Indenture Trustee and the Issuer in the Pledged Assets and the Contract
Assets, respectively, have been made.

         (n) Special Purpose Entity.  The Issuer has not and shall not:

                  (i) engage in any business or activity other than the purchase
         and receipt of Contract Assets from the Originator hereunder and such
         other activities as are incidental thereto;

                                       44

<PAGE>

                  (ii) acquire or own any material assets other than (A) the
         Contract Assets from the Originator hereunder and (B) incidental
         property as may be necessary for the operation of the Issuer;

                  (iii) merge into or consolidate with any Person or dissolve,
         terminate or liquidate in whole or in part, transfer or otherwise
         dispose of all or substantially all of its assets or change its legal
         structure;

                  (iv) fail to preserve its existence as an entity duly
         organized, validly existing and in good standing under the laws of the
         jurisdiction of its organization or formation, or amend, modify,
         terminate, fail to comply with the provisions of its Certificates of
         Formation, or fail to observe entity formalities;

                  (v)  own any subsidiary or make any investment in any Person;

                  (vi) commingle its assets with the assets of any of its
         Affiliates, or of any other Person, other than to the extent described
         in Section 7.01;

                  (vii) incur any debt, secured or unsecured, direct or
         contingent (including guaranteeing any obligation), other than
         indebtedness created hereunder except for trade payables in the
         ordinary course of its business, provided that such debt is not
         evidenced by a note and paid when due;

                 (viii) become insolvent or fail to pay its debts and
         liabilities from its assets as the same shall become due;

                 (ix) fail to maintain its records, books of account and bank
         accounts separate and apart from those of its principal and Affiliates,
         and any other Person;

                 (x) enter into any contract or agreement with any of its
         principals or Affiliates or any other Person, except upon terms and
         conditions that are commercially reasonable and intrinsically fair and
         substantially similar to those that would be available on an
         arms-length basis with third parties other than any principal or
         Affiliates;

                  (xi) seek its dissolution or winding up in whole or in part;

                  (xii) fail to correct any known misunderstandings regarding
         the separate identity of Issuer or any principal or Affiliate thereof
         or any other Person;

                  (xiii) guarantee,  become  obligated for, or hold itself out
         to be responsible for the debt of another Person;

                  (xiv) make any loan or advances to any third party, including
         any principal or Affiliate, or hold evidence of indebtedness issued by
         any other Person (other than cash and investment-grade securities);

                                       45

<PAGE>

                  (xv) fail to file its own separate tax return, or file a
         consolidated federal income tax return with any other Person;

                  (xvi) fail either to hold itself out to the public as a legal
         entity separate and distinct from any other Person or to conduct its
         business solely in its own name in order not (A) to mislead others as
         to the identity with which such other party is transacting business, or
         (B) to suggest that it is responsible for the debts of any third party
         (including any of its principals or Affiliates);

                  (xvii) fail to maintain adequate capital for the normal
         obligations reasonably foreseeable in a business of its size and
         character and in light of its contemplated business operations;

                  (xviii) file or consent to the filing or any petition, either
         voluntary or involuntary, to take advantage of any applicable
         insolvency, bankruptcy, liquidation or reorganization statute, or make
         an assignment for the benefit of creditors;

                  (xix) share any common logo with or hold itself out as or be
         considered as a department or division of (A) any of its principals or
         affiliates, (B) any Affiliate of a principal or (C) any other Person;

                  (xx) permit any transfer (whether in any one or more
         transactions) of any ownership interest in the Issuer;

                  (xxi) fail to maintain separate financial statements, showing
         its assets and liabilities separate and apart from those of any other
         Person;

                  (xxii) fail to pay its own liabilities and expenses only out
         of its own funds;

                  (xxiii) fail to pay the salaries of its own employees in
         light of its contemplated business operations;

                  (xxiv) acquire the obligations or securities of its Affiliates
         or equity holders;

                  (xxv) fail to allocate fairly and reasonably any overhead
         expenses that are shared with an Affiliate, including paying for office
         space and services performed by any employee of an Affiliate;

                  (xxvi) fail to use separate invoices and checks bearing its
own name;

                  (xxvii) pledge its assets for the benefit of any other Person;

                  (xxviii) fail at any time to have at least two Independent
Directors;

                  (xxix) fail to provide that the unanimous consent of all
         directors (including the consent of the Independent Directors) is
         required for the Issuer to (A) dissolve or

                                       46

<PAGE>

         liquidate, in whole or part, or institute proceedings to be
         adjudicated bankrupt or insolvent, (B) institute or consent to the
         institution of bankruptcy or insolvency proceedings against it, (C)
         file a petition seeking or consent to reorganization or relief under
         any applicable federal or state law relating to bankruptcy or
         insolvency, (D) seek or consent to the appointment of a receiver,
         liquidator, assignee, trustee, sequestrator, custodian or any similar
         official for the Issuer, (E) make any assignment for the benefit of
         the Issuer's creditors, (F) admit in writing its inability to pay its
         debts generally as they become due, or (G) take any action in
         furtherance of any of the foregoing; and

                  (xxx) take or refrain from taking, as applicable, each of the
         activities specified in the non-consolidation opinion of Chapman and
         Cutler, delivered on the Closing Date, upon which the conclusions
         expressed therein are based.

                  (o) No Liens. The Issuer will not sell, pledge, assign,
         transfer or grant any lien on the Contracts or its interest in the
         Equipment, except for Permitted Liens.

Such representations speak as of the execution and delivery of this Agreement
and as of the Closing Date in the case of the Initial Contracts, and as of the
applicable Subsequent Transfer Date in the case of the Substitute Contracts, but
shall survive the sale, transfer and assignment of the Contracts to the
Indenture Trustee.

         SECTION 3.07.    REPRESENTATIONS AND WARRANTIES REGARDING THE SERVICER.
                          -----------------------------------------------------

         The Servicer represents and warrants to the Issuer, the Indenture
Trustee and the Noteholders that:

         (a) Organization and Good Standing. The Servicer is a corporation duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization and has the corporate power to own its assets
and to transact the business in which it is currently engaged. The Servicer is
duly qualified to do business as a foreign corporation and is in good standing
in each jurisdiction in which the character of the business transacted by it or
properties owned or leased by it requires such qualification and in which the
failure so to qualify would have a material adverse effect on the business,
properties, assets, or condition (financial or otherwise) of the Servicer. The
Servicer is properly licensed in each jurisdiction to the extent required by the
laws of such jurisdiction to service the Contracts in accordance with the terms
hereof.

         (b) Authorization; Binding Obligations. The Servicer has the power and
authority to make, execute, deliver and perform this Agreement and the other
Transaction Documents to which the Servicer is a party and all of the
transactions contemplated under this Agreement and the other Transaction
Documents to which the Servicer is a party, and has taken all necessary
corporate action to authorize the execution, delivery and performance of this
Agreement and the other Transaction Documents to which the Servicer is a party.
This Agreement and the other Transaction Documents to which the Servicer is a
party constitute the legal, valid and binding obligation of the Servicer
enforceable in accordance with their terms, except as enforcement of such terms
may be limited by bankruptcy, insolvency or similar laws affecting the
enforcement of creditors' rights generally and by the availability of equitable
remedies.

                                       47

<PAGE>

         (c) No Consent Required. The Servicer is not required to obtain the
consent of any other party or any consent, license, approval or authorization
from, or registration or declaration with, any Governmental Authority in
connection with the execution, delivery, performance, validity or enforceability
of this Agreement and the other Transaction Documents to which the Servicer is a
party.

         (d) No Violations. The execution, delivery and performance of this
Agreement and the other Transaction Documents to which the Servicer is a party
by the Servicer will not violate any Requirements of Law applicable to the
Servicer, or constitute a material breach of any mortgage, indenture, contract
or other agreement to which the Servicer is a party or by which the Servicer or
any of the Servicer's properties may be bound, or result in the creation of or
imposition of any security interest, lien, pledge, preference, equity or
encumbrance of any kind upon any of its properties pursuant to the terms of any
such mortgage, indenture, contract or other agreement, other than as
contemplated by the Transaction Documents.

         (e) Litigation. No litigation or administrative proceeding of or before
any court, tribunal or governmental body is currently pending, or to the
knowledge of the Servicer threatened, against the Servicer or any of its
properties or with respect to this Agreement, or any other Transaction Document
to which the Servicer is a party that, if adversely determined, would have a
material adverse effect on the business, properties, assets or condition
(financial or otherwise) of the Servicer or the transactions contemplated by
this Agreement or any other Transaction Document to which the Servicer is a
party.

         (f) Reports. All reports, certificates and other written information
furnished by the Servicer with respect to the Contracts are correct in all
material respects.

         SECTION 3.08.        [RESERVED].
                              ----------

                                   ARTICLE IV

           PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS

         SECTION 4.01.        CUSTODY OF CONTRACTS.
                              --------------------

         The contents of each Contract File shall be held in the custody of the
Custodian under the Custodian Agreement for the benefit of, and as agent for,
the Indenture Trustee.

         SECTION 4.02.        FILING.
                              ------

         On or prior to the Closing Date, the Originator, Issuer and Servicer
shall cause the UCC financing statement(s) referred to in Section 2.02(x) hereof
to be filed, and from time to time the Servicer shall take and cause to be taken
such actions and execute such documents as are necessary or desirable or as the
Indenture Trustee (acting at the direction of the Required Holders) may
reasonably request to perfect and protect the Indenture Trustee's first priority
security interest in the Pledged Assets against all other persons, including,
without limitation, the filing of financing statements, amendments thereto and
continuation statements, the execution

                                       48

<PAGE>

of transfer instruments and the making of notations on or taking possession of
all records or documents of title.

         SECTION 4.03.        NAME CHANGE OR RELOCATION.
                              -------------------------

         (a) During the term of this Agreement, none of the Originator, the
Servicer and the Issuer shall change its name, identity or structure, state of
formation, or relocate its chief executive office without first giving at least
30 days' prior written notice to the Indenture Trustee and notice to the Rating
Agencies.

         (b) If any change in either the Servicer's, the Originator's or the
Issuer's name, identity or structure or other action would make any financing or
continuation statement or notice of ownership interest or lien relating to any
Contract Asset seriously misleading within the meaning of applicable provisions
of the UCC or any title statute, the Servicer and/or the Originator, no later
than five days after the effective date of such change, shall file such
amendments as may be required to preserve and protect the Issuer's and the
Indenture Trustee's interests in the Contract Assets and the Pledged Assets,
respectively, and the proceeds thereof. In addition, neither the Originator, the
Servicer nor the Issuer shall change the place of its chief executive office or
its state of formation unless it has first taken such action as is advisable or
necessary to preserve and protect the Issuer's and the Indenture Trustee's
interests in the Contract Assets and the Pledged Assets, respectively. Promptly
after taking any of the foregoing actions, the Servicer shall deliver to the
Indenture Trustee and to the Rating Agencies an Opinion of Counsel reasonably
acceptable to the Indenture Trustee and the Rating Agencies stating that, in the
opinion of such counsel, all financing statements or amendments necessary to
preserve and protect the interests of the Indenture Trustee in the Pledged
Assets have been filed, and reciting the details of such filing.

         SECTION 4.04.        CHIEF EXECUTIVE OFFICE.
                              ----------------------

         During the term of this Agreement, and subject to the other terms and
provisions herein relating to changes in location, the Originator will maintain
its chief executive office in one of the States of the United States.

         SECTION 4.05.        COSTS AND EXPENSES.
                              ------------------

         The Servicer agrees to pay all reasonable costs and disbursements in
connection with the perfection and the maintenance of perfection, as against all
third parties, of the Issuer's and Indenture Trustee's right, title and interest
in and to the Contract Assets and the Pledged Assets (including, without
limitation, the security interest in the Equipment related thereto to the extent
described in Section 3.06(m) and the security interests provided for in the
Indenture).

         SECTION 4.06.        SALE TREATMENT.
                              --------------

         The Originator and the Issuer shall each treat the transfer of Contract
Assets made hereunder for all purposes as a sale and purchase on all of its
relevant books, records, financial statements and other applicable documents.

                                       49

<PAGE>

         SECTION 4.07.        SEPARATENESS FROM ISSUER.
                              ------------------------

         The Originator agrees to take or refrain from taking or engaging in
with respect to the Issuer each of the actions or activities specified in the
"substantive consolidation" opinion of Chapman and Cutler (including any
certificates of the Originator attached thereto) delivered on the Closing Date,
upon which the conclusions therein are based.

         SECTION 4.08.        INSURANCE POLICY OF THE ORIGINATOR.
                              ----------------------------------

         Originator maintains, with an insurer with a general policy rating of A
or better with a class of VI or better by A.M. Best & Co., a general liability
insurance policy with coverage in the amount of $1,000,000 per occurrence and
coverage in the aggregate amount of $2,000,000. The policy is in full force and
effect and covers all Equipment owned by the Originator. All premiums in respect
of such policies have been paid. The Indenture Trustee is named as an additional
insured on such liability policies.

                                    ARTICLE V

                             SERVICING OF CONTRACTS

         SECTION 5.01.        APPOINTMENT AND ACCEPTANCE; RESPONSIBILITY FOR
                              CONTRACT ADMINISTRATION.
                              -----------------------------------------------

         GreatAmerica is hereby appointed as Servicer and custodian (as
contemplated in Article IV hereof) pursuant to this Agreement. GreatAmerica
accepts the appointment and agrees to act as the Servicer and custodian pursuant
to this Agreement and also as custodian pursuant to the Custodian Agreement.

         The Servicer will have the sole obligation to manage, administer,
service and make collections on the Contracts and perform or cause to be
performed all contractual and customary undertakings of the holder of the
Contracts to the Obligor. The Servicer is hereby appointed the servicer
hereunder until such time as any Servicer Transfer may be effected under Article
VIII.

         SECTION 5.02.        GENERAL DUTIES.
                              --------------

         The Servicer will service, administer and enforce the Contracts in the
Contracts Pool on behalf of the Issuer and will have full power and authority to
do any and all things in connection with such servicing and administration which
it deems necessary or desirable and as shall not contravene the provisions of
this Agreement. The Servicer will manage, service, administer, and make
collections on the Contracts in the Contracts Pool with reasonable care, using
that degree of skill and attention that the Servicer exercises with respect to
all comparable contracts that it services for itself or others. The Servicer's
duties will include collection and posting of all payments, responding to
inquiries of Obligors regarding the Contracts in the Contracts Pool,
investigating delinquencies, accounting for collections, furnishing monthly and
annual statements with respect to collections and payments in accordance with
Article IX hereof and with its customary standards, policies and procedures, and
using its best efforts to maintain the

                                       50

<PAGE>

perfected first priority security interest of the Indenture Trustee in the
Pledged Assets. The Servicer will follow its customary standards, policies, and
procedures and will have full power and authority, acting alone (and consistent
with its customary standards, policies and procedures, in its own name), to do
any and all things in connection with such managing, servicing, administration,
and collection, including, without limitation, litigation that it deems
necessary or desirable. If the Servicer commences a legal proceeding to enforce
a Defaulted Contract pursuant to Section 5.15 or commences or participates in a
legal proceeding (including a bankruptcy proceeding) relating to or involving a
Contract in the Contracts Pool, the Issuer will be deemed to have automatically
assigned such Contract to the Servicer immediately prior to commencement of any
such legal proceeding, for purposes of commencing or participating in any such
proceeding as a party or claimant, and the Servicer is authorized and empowered
by the Issuer, pursuant to this Section 5.02, to execute and deliver, on behalf
of itself and the Issuer, any and all instruments of satisfaction or
cancellation, or partial or full release or discharge, and all other notices,
demands, claims, complaints, responses, affidavits or other documents or
instruments in connection with any such proceedings. If in any enforcement suit
or legal proceeding it is held that the Servicer may not enforce a Contract on
the ground that it is not a real party in interest or a holder entitled to
enforce the Contract, then the Issuer will, at the Servicer's expense and
direction, take steps on behalf of the Issuer to enforce the Contract, including
bringing suit in the Issuer's name.

         SECTION 5.03.        CONSENT TO ASSIGNMENT OR REPLACEMENT.
                              ------------------------------------

         At the request of an Obligor, the Servicer may in its sole discretion
consent to the assignment of the related Contract or the sublease of a unit of
the Equipment relating to a Contract, so long as such Obligor remains liable for
all of its obligations under such Contract. Upon the request of any Obligor, the
Servicer may, in its sole discretion, provide for the substitution or
replacement of any unit of Equipment for a substantially similar unit of
Equipment, so long as such Obligor remains liable for all of its obligations
under such Contract.

         SECTION 5.04.        DISPOSITION UPON TERMINATION OF CONTRACT.
                              ----------------------------------------

         Upon the termination of a Contract included in the Contracts Pool as a
result of a default by the Obligor thereunder, and upon any such Contract
becoming a Defaulted Contract, the Servicer will use commercially reasonable
efforts to dispose of any related Equipment. Without limiting the generality of
the foregoing, the Servicer may dispose of any such Equipment by purchasing such
Equipment or by selling such Equipment to any of its Affiliates for a purchase
price equal to the fair market value thereof as reasonably determined by the
Servicer. The Servicer will deposit any Prepayments of any such disposition in
accordance with Section 7.01.

         SECTION 5.05.        SUBSERVICERS.
                              ------------

         The Servicer may enter into servicing agreements with one or more
subservicers (including any Affiliate of the Servicer) to perform all or a
portion of the servicing functions on behalf of the Servicer; provided that the
Servicer shall remain obligated and be liable to the Issuer for servicing and
administering the Contracts in the Contracts Pool in accordance with the
provisions of this Agreement without diminution of such obligation and liability
by virtue of the appointment of such subservicer, to the same extent and under
the same terms and conditions as

                                       51

<PAGE>

if the Servicer alone were servicing and administering such Contracts. The fees
and expenses of the subservicer (if any) will be as agreed between the Servicer
and its subservicer and neither the Issuer, the Indenture Trustee nor the
Holders will have any responsibility therefor. All actions of a subservicer
taken pursuant to such a subservicer agreement will be taken as an agent of the
Servicer with the same force and effect as though performed by the Servicer.

         SECTION 5.06.        FURTHER ASSURANCE.
                              -----------------

         The Issuer and the Indenture Trustee will, at the written request and
expense of the Servicer, furnish the Servicer, and the Servicer will furnish any
subservicer, with any powers of attorney and other documents necessary or
appropriate to enable the Servicer or a subservicer, as applicable, to carry out
its servicing and administrative duties under this Agreement, the forms of which
documents shall be prepared by the Servicer and submitted for execution to the
Issuer or the Indenture Trustee, as the case may be. The Servicer shall not, nor
shall the Servicer permit any subservicer to, initiate any action in the
Indenture Trustee's name if such action were to require the Indenture Trustee to
become registered to do business in any state in which it was not already
registered and without both obtaining the Indenture Trustee's prior written
consent and indicating the Servicer's or such subservicer's representative
capacity.

         SECTION 5.07.        NOTICE TO OBLIGORS.
                              ------------------

         The Servicer will not be required to notify any Obligor that such
Obligor's Contract or related Equipment, or any security interest in such
Contract or such Equipment, has been sold, transferred, assigned, or conveyed
pursuant to this Agreement; provided that, in the event that the Servicer
resigns or is replaced, then if the place for payment pursuant to any Contract
is changed, the Successor Servicer must give each related Obligor prompt written
notice of the appointment of the Successor Servicer and the place to which such
Obligor should make payments pursuant to each such Contract.

         SECTION 5.08.        COLLECTION EFFORTS; MODIFICATION OF CONTRACTS.
                              ---------------------------------------------
         (a) The Servicer will make reasonable efforts to collect all payments
called for under the terms and provisions of the Contracts in the Contracts Pool
as and when the same become due, and will follow those collection procedures
that it follows with respect to all comparable contracts that it services for
itself or others.

         (b) The Servicer may, subject to Sections 5.09 and 5.10, at the request
of an Obligor and at the Servicer's option, waive, modify or otherwise vary any
other provision of a Contract in accordance with its customary and usual credit
and collection practices; provided, that no such waiver, modification or
variance shall (except as provided in Sections 5.09, 5.10 and 5.15), without the
consent of each Rating Agency,

               (i) have the effect of accelerating, delaying or extending the
          date for or the amount of any payment of Scheduled Payments with
          respect to such Contract;

               (ii) be inconsistent with the servicing standards set forth in
          Section 5.02; or

                                       52

<PAGE>

               (iii) have a material adverse effect on the interests of any of
          the Issuer, the Indenture Trustee or the Noteholders.

Notwithstanding the foregoing, to the extent consistent with the Servicer's
customary and usual credit and collection practices, the Servicer may grant
extensions or adjustments on any Contract; provided, however, that if the
Servicer (i) extends a Contract by more than three months in any calendar year,
(ii) extends a Contract more than twice in the life of such Contract, (iii)
reduces the frequency of periodic payments under a Contract, (iv) reduces the
unpaid principal balance or the rate of interest with respect to a Contract, or
(v) extends a Contract in manner that is inconsistent with the Servicer's
customary and usual credit and collection practices, the Servicer shall purchase
the affected Contract no later than the next succeeding Determination Date by
either (a) depositing the unpaid Principal Balance of the Contract (plus any
related Unreimbursed Servicer Advances (unless the Servicer effectively waives
and releases its rights with respect to such Servicer Advances) and plus accrued
and unpaid interest) in the Collection Account, or (b) transferring a Substitute
Contract to the Issuer in exchange for such Contract. Additionally,
notwithstanding the foregoing, the Servicer may in its discretion waive any late
payment charge or any other fees that may be collected in the ordinary course of
servicing any Contract in the Contracts Pool.

         SECTION 5.09.        PREPAID CONTRACT.
                              ----------------

         The Servicer may, at its option and in accordance with its customary
and usual credit and collection practices, agree to permit a Contract in the
Contracts Pool that is not otherwise contractually prepayable by its terms to
become a Prepaid Contract (which shall not include a Contract that becomes an
Prepaid Contract due to a Casualty Loss); provided that the Servicer will not
permit the early termination or full prepayment of such a Contract unless (i)
such early termination or full prepayment would not result in the Issuer
receiving an amount (the "Prepayment Amount") less than the sum of (A) the
remaining Principal Balance on the date of such prepayment and delinquent
payments thereon and (B) any Unreimbursed Servicer Advances thereon (unless
effectively waived and released by the Servicer), or (ii) if such early
termination or full prepayment would result in the Indenture Trustee receiving a
Prepayment Amount less than the amount set forth in clause (i), the Originator
shall have agreed to pay the Issuer for remittance to the Indenture Trustee the
difference between the Prepayment Amount actually paid and the amount set forth
in clause (i) (such payment by the Originator also to be considered a
"Prepayment Amount"). At the option of the Originator, the Servicer may use the
Prepayment Amount to purchase a Substitute Contract for such Prepaid Contract
from the Originator.

         The Servicer shall pay all Payaheads to the Payahead Account. With
respect to any Payment Date, the Indenture Trustee shall withdraw amounts from
the Payahead Account that reflect payments due in the related Collection Period,
for distribution to the Noteholders.

         SECTION 5.10.        ACCELERATION.
                              ------------

         The Servicer, in its sole discretion and consistent with its customary
and usual credit and collection practices, may accelerate (or elect not to
accelerate) the maturity of all or any Scheduled Payments under any Contract in
the Contracts Pool under which a default under the

                                       53

<PAGE>

terms thereof has occurred and is continuing (after the lapse of any applicable
grace period); provided that the Servicer is required to accelerate the
Scheduled Payments due under any Contract in the Contracts Pool (and take other
action in accordance with the Originator's past practice, including repossessing
the related Equipment, to realize upon the value of such Contract and the
related Equipment) to the fullest extent permitted by the terms of such
Contract, promptly after such Contract becomes a Defaulted Contract.

         SECTION 5.11.        TAXES.
                              -----

         To the extent provided for in any Contract in the Contracts Pool, the
Servicer will make reasonable efforts to collect (or cause to be collected) all
payments with respect to amounts due for taxes and assessments relating to such
Contracts or the Equipment and remit such amounts to the appropriate
Governmental Authority on or prior to the date such payments are due.

         SECTION 5.12.        INSURANCE PREMIUMS.
                              ------------------

         To the extent provided for in any Contract in the Contracts Pool and
consistent with the Servicer's customary collection procedures, the Servicer
will make reasonable efforts to collect (or cause to be collected) all payments
with respect to amounts due for insurance premiums relating to such Contracts or
the Equipment and remit such amounts to the appropriate insurer on or prior to
the date such payments are due.

         SECTION 5.13.        REMITTANCES.
                              -----------

         The Servicer will service all Collections in accordance with Section
7.01 hereof.

         SECTION 5.14.        SERVICER ADVANCES.
                              -----------------

         For each Collection Period, if the Servicer determines that any
Scheduled Payment (or portion thereof) which was due and payable pursuant to a
Contract in the Contracts Pool during such Collection Period was not received
prior to the related Determination Date, the Servicer has the right to elect,
but is not obligated, to make a Servicer Advance in an amount up to the amount
of such delinquent Scheduled Payment (or portion thereof) if the Servicer
reasonably believes that the advance will be recovered from subsequent payments
with respect to that Contract. The Servicer will deposit any Servicer Advances
into the Collection Account on or prior to 11:00 a.m. (New York City time) on
the related Transfer Date, in immediately available funds. The Servicer will be
entitled to be reimbursed for Servicer Advances pursuant to Sections 7.05(a) and
7.05(b). The Successor Servicer shall have no obligation to make any Servicer
Advance.

         SECTION 5.15.        REALIZATION UPON DEFAULTED CONTRACT.
                              -----------------------------------

         The Servicer will use its best efforts consistent with its customary
and usual credit and collection practices and procedures in its servicing of
contracts to repossess or otherwise comparably convert the ownership of any
Equipment relating to a Defaulted Contract and will either act as sales agent
for Equipment which it repossesses or retain a sales agent consistent with its
current practices. The Servicer will follow such other practices and procedures
as it deems necessary or advisable and as are customary and usual in its
servicing of contracts and other

                                       54

<PAGE>

actions by the Servicer in order to realize upon such Equipment, which practices
and procedures may include reasonable efforts to enforce all obligations of
Obligors and repossessing and selling such Equipment at public or private sale
in circumstances other than those described in the preceding sentence. Without
limiting the generality of the foregoing, the Servicer may sell any such
Equipment to the Servicer or its Affiliates for a purchase price equal to the
then fair market value thereof. In any case in which any such Equipment has
suffered damage, the Servicer will not expend funds in connection with any
repair or toward the repossession of such Equipment unless it determines in its
discretion that such repair and/or repossession will increase the Liquidation
Proceeds by an amount greater than the amount of such expenses. The Servicer
will remit to the Collection Account the Liquidation Proceeds received in
connection with the sale or disposition of Equipment relating to a Defaulted
Contract in accordance with Section 7.01.

         SECTION 5.16.        MAINTENANCE OF INSURANCE POLICIES.
                              ---------------------------------

         The Servicer will use its best efforts consistent with the Servicer's
customary policies and procedures to ensure that each Obligor maintains an
Insurance Policy with respect to the related Equipment in an amount at least
equal to the replacement cost of the Equipment; provided that the Servicer, in
accordance with its customary servicing procedures, may allow Obligors to
self-insure. Additionally, the Servicer will require that each Obligor maintain
property damage insurance and, in the case of Leases, also liability insurance,
during the term of each Contract in the Contracts Pool in amounts and against
risks customarily insured against. If an Obligor fails to maintain property
damage insurance, the Servicer may, but is under no obligation to, purchase and
maintain such insurance on behalf of, and at the expense of, the Obligor in
accordance with the Servicer's customary practices and policies. In connection
with its activities as Servicer of the Contracts, the Servicer agrees to
present, on behalf of itself, the Issuer, the Indenture Trustee and the Holders,
claims to the insurer under each Insurance Policy and any such liability policy,
and to settle, adjust and compromise such claims, in each case, consistent with
the terms of each Contract and the Servicer's customary practice and policies.

         SECTION 5.17.        OTHER SERVICER COVENANTS.
                              ------------------------

         The Servicer hereby covenants that:

         (a) Contract Files. The Servicer will, at its own cost and expense,
maintain all Contract Files in accordance with its customary procedures. Without
limiting the generality of the preceding sentence, the Servicer will not dispose
of any documents constituting the Contract Files in any manner that is
inconsistent with the performance of its obligations as the Servicer pursuant to
this Agreement and will not dispose of any Contract except as contemplated by
this Agreement.

         (b) Compliance with Law. The Servicer will comply, in all material
respects, with all laws and regulations of any Governmental Authority applicable
to the Servicer or the Contracts in the Contracts Pool and related Equipment and
Contract Files or any part thereof; provided that the Servicer may contest any
such law or regulation in any reasonable manner which will not materially and
adversely affect the value of (or the rights of the Indenture Trustee on behalf
of the Noteholders, with respect to) the Pledged Assets.

                                       55

<PAGE>

         (c) Obligations with Respect to Contracts; Modifications. The Servicer
will duly fulfill and comply with, in all material respects, all obligations on
the part of the Issuer to be fulfilled or complied with under or in connection
with each Contract in the Contracts Pool and will do nothing to impair the
rights of the Indenture Trustee and the Holders in, to and under the Pledged
Assets. The Servicer will perform such obligations under the Contracts in the
Contracts Pool and will not change or modify the Contracts, except as otherwise
permitted hereby.

         (d) No Bankruptcy Petition. Prior to the date that is one year and one
day after the payment in full of all amounts owing in respect of all outstanding
Notes, the Servicer will not institute against the Issuer or join any other
Person in instituting against the Issuer, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or other similar proceedings
under the laws of the United States or any state of the United States. This
Section 5.17(d) will survive the termination of this Agreement.

         (e) Location of Contract Files.  The Contract Files shall remain at
all times in the  possession of the Servicer.

         (f) Regulatory Filings. The Servicer, on behalf of the Issuer, shall
make any filings, reports, notices, applications and registrations with, and
seek any consents or authorizations from, the Commission and any state
securities authority as may be necessary or that the Issuer deems advisable to
comply with any federal or state securities or reporting requirements laws.

         SECTION 5.18.        SERVICING COMPENSATION.
                              ----------------------

         As compensation for its servicing activities hereunder and
reimbursement for its expenses as set forth in Section 5.19, the Servicer shall
be entitled to receive a monthly servicing fee in respect of any Collection
Period (or portion thereof) prior to the termination of the Indenture (with
respect to each Collection Period, the "Servicing Fee") equal to one-twelfth of
the product of (A) the Servicing Fee Percentage and (B) the aggregate remaining
Principal Balance of the Contracts Pool as of the first day of such Collection
Period. Notwithstanding anything else herein to the contrary, in no event shall
the Indenture Trustee be liable for any Servicing Fee or for any differential in
the amount of the servicing fee paid hereunder and the amount necessary to
induce any Successor Servicer to act as Successor Servicer under this Agreement
and the transactions set forth or provided for herein.

         SECTION 5.19.        PAYMENT OF CERTAIN EXPENSES BY SERVICER.
                              ---------------------------------------

         The Servicer will be required to pay all expenses incurred by it in
connection with its activities under this Agreement, including fees and
disbursements of independent accountants, the Issuer (including with respect to
an administrator acting on behalf of the Issuer), the Indenture Trustee, taxes
imposed on the Servicer, expenses incurred in connection with payments and
reports pursuant to this Agreement, and all other fees and expenses not
expressly stated under this Agreement for the account of the Issuer. The
Servicer will be required to pay all reasonable fees and expenses (including,
without limitation, legal fees, expenses and indemnity amounts) owing to the
Indenture Trustee in connection with the maintenance of the Trust Accounts. The
Servicer shall be required to pay such expenses for its own account and shall
not be entitled to any payment or reimbursement therefor other than the
Servicing Fee, and

                                       56

<PAGE>

the reimbursement for Liquidation Expenses, to the extent funds are recovered
related to a Contract with respect to which such Liquidation Expenses were
incurred.

         SECTION 5.20.        RECORDS.
                              -------

         The Servicer shall, during the period it is Servicer hereunder,
maintain such books of account and other records as will enable the Issuer and
the Indenture Trustee to determine the status of each Contract.

         SECTION 5.21.        INSPECTION.
                              ----------

         (a) At all times during the term hereof, the Servicer shall afford the
Issuer and the Indenture Trustee and their respective authorized agents
reasonable access during normal business hours to the Servicer's records
relating to the Contracts and will cause its personnel to assist in any
examination of such records by the Issuer or the Indenture Trustee, or such
authorized agents, and allow copies of the same to be made. The examination
referred to in this Section will be conducted in a manner which does not
unreasonably interfere with the Servicer's normal operations or customer or
employee relations. Without otherwise limiting the scope of the examination the
Issuer or the Indenture Trustee may (but shall be under no obligation), using
generally accepted audit procedures, verify the status of each Contract and
review the Computer Records and other records relating thereto for conformity to
Monthly Reports prepared pursuant to Article Nine and compliance with the
standards represented to exist as to each Contract in this Agreement.

         (b) At all times during the term hereof, the Servicer shall keep
available a copy of the List of Contracts at its principal executive office for
inspection by Noteholders.

         (c) The Servicer shall, if given reasonable notice by the Indenture
Trustee after the end of any Collection Period, provide the Indenture Trustee
with a copy of the Computer Records.

         SECTION 5.22.    INDENTURE TRUSTEE AND ISSUER TO COOPERATE IN RELEASES.
                          -----------------------------------------------------

         At the same time as (i) any Contract becomes a Prepaid Contract and in
connection therewith the Equipment related to such Prepaid Contract is sold, or
(ii) the Servicer substitutes or replaces any unit of Equipment as contemplated
in Section 5.03 (such events in subsections (i) and (ii) to be certified to the
Indenture Trustee by an Authorized Officer of the Servicer), the Issuer, and the
Indenture Trustee, on behalf of the Noteholders, will to the extent requested in
writing by the Servicer release the Indenture Trustee's and the Issuer's
interest in the Equipment relating to such Prepaid Contract or such substituted
or replaced Equipment, as the case may be; provided that such release will not
constitute a release of the their respective interests in the proceeds of such
sale. In connection with any sale of such Equipment, the Issuer and the
Indenture Trustee will execute and deliver to the Servicer any assignments,
bills of sale, termination statements and any other releases and instruments as
the Servicer may request in writing in order to effect such release and
transfer; provided that neither the Issuer nor the Indenture Trustee will make
any representation or warranty, express or implied, with respect to any such
Equipment in connection with such sale or transfer and assignment. Nothing in
this

                                       57

<PAGE>

Section 5.22 shall diminish the Servicer's obligations pursuant to Section
7.01 with respect to the proceeds of any such sale.

                                   ARTICLE VI

                             COVENANTS OF THE ISSUER

         SECTION 6.01.        LIMITED LIABILITY COMPANY EXISTENCE.
                              -----------------------------------

         During the term of this Agreement, the Issuer will keep in full force
and effect its existence, rights and franchises as a limited liability company
under the laws of the jurisdiction of its formation 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 Agreement, the other Transaction Documents and each other
instrument or agreement necessary or appropriate to the proper administration of
this Agreement and the transactions contemplated hereby. In addition, all
transactions and dealings between the Issuer and its Affiliates will be
conducted on an arm's-length basis.

         SECTION 6.02.        CONTRACTS NOT TO BE EVIDENCED BY PROMISSORY NOTES.
                              -------------------------------------------------

         The Issuer will take no action to cause any Contract not originally
evidenced by an instrument as described in Section 2.06 hereof, to be evidenced
by an instrument (as defined in the UCC), except in connection with the
enforcement or collection of such Contract.

         SECTION 6.03.        SECURITY INTERESTS.
                              ------------------

         Except as permitted by the Indenture, the Issuer will not sell, pledge,
assign or transfer to any other Person, or grant, create, incur, assume or
suffer to exist any Lien on any Contract in the Contracts Pool or any related
Equipment owned by it, whether now existing or hereafter transferred to the
Issuer, or any interest therein. The Issuer will immediately notify the
Indenture Trustee of the existence of any Lien on any Contract in the Contracts
Pool or any related Equipment owned by it; and the Issuer shall defend the
right, title and interest of the Indenture Trustee in, to and under the
Contracts in the Contracts Pool and the related Equipment, against all claims of
third parties; provided, however, that nothing in this Section 6.03 shall
prevent or be deemed to prohibit the Issuer from suffering to exist Permitted
Liens upon any of the Contracts in the Contracts Pool or any related Equipment.

         SECTION 6.04.        DELIVERY OF COLLECTIONS.
                              -----------------------

         The Issuer agrees to pay to the Servicer promptly (but in no event
later than two Business Days after receipt) all Collections received by the
Issuer in respect of the Contracts in the Contracts Pool, for application in
accordance with Section 7.01.

         SECTION 6.05.        REGULATORY FILINGS.
                              ------------------

         The Issuer shall make any filings, reports, notices, applications and
registrations with, and seek any consents or authorizations from, the Commission
and any state securities authority

                                       58

<PAGE>

as may be necessary or that the Issuer deems advisable to comply with any
federal or state securities or reporting requirements laws.

         SECTION 6.06.        COMPLIANCE WITH LAW.
                              -------------------

         The Issuer hereby agrees to comply in all material respects with all
Requirements of Law applicable to the Issuer.

         SECTION 6.07.        ACTIVITIES.
                              ----------

         The Issuer shall not engage in any business or activity of any kind, or
enter into any transaction or indenture, mortgage, instrument, agreement,
contract, lease or other undertaking, which is not directly related to the
transactions contemplated and authorized by this Agreement or the other
Transaction Documents.

         SECTION 6.08.        INDEBTEDNESS.
                              ------------

         The Issuer shall not create, incur, assume or suffer to exist any
Indebtedness or other liability whatsoever, except (i) obligations incurred
under this Agreement or (ii) liabilities incident to the maintenance of its
entity existence in good standing.

         SECTION 6.09.        GUARANTEES.
                              ----------

         The Issuer shall not become or remain liable, directly or contingently,
in connection with any Indebtedness or other liability of any other Person,
whether by guarantee, endorsement (other than endorsements of negotiable
instruments for deposit or collection in the ordinary course of business),
agreement to purchase or repurchase, agreement to supply or advance funds.

         SECTION 6.10.        INVESTMENTS.
                              -----------

         The Issuer shall not make or suffer to exist any loans or advances to,
or extend any credit to, or make any investments (by way of transfer of
property, contributions to capital, purchase of stock or securities or evidences
of indebtedness, acquisition of the business or assets, or otherwise) in, any
Person except (i) for purchases of Contract Assets from the Originator or (ii)
for investments in Eligible Investments in accordance with the terms of this
Agreement. Without limiting the generality of the foregoing, the Issuer shall
not provide credit to any Noteholder for the purpose of enabling such Noteholder
to purchase any Notes.

         SECTION 6.11.        MERGER; SALES.
                              -------------

         The Issuer shall not enter into any transaction of merger or
consolidation, or liquidate or dissolve itself (or suffer any liquidation or
dissolution) or acquire or be acquired by any Person, or convey, sell, lease or
otherwise dispose of all or substantially all of its property or business,
except as provided for in this Agreement.

                                       59

<PAGE>

         SECTION 6.12.        PAYMENTS.
                              --------

         The Issuer shall not declare or pay, directly or indirectly, any
dividend or make any other payment (whether in cash or other property) with
respect to the profits, assets or capital of the Issuer or any Person's interest
therein, or purchase, redeem or otherwise acquire for value any of its equity
ownership interests now or hereafter outstanding, except that so long as no
Event of Default has occurred and is continuing and no Event of Default would
occur as a result thereof or after giving effect thereto and the Issuer would
continue to be Solvent as a result thereof and after giving effect thereto, and
otherwise act in accordance with the Transaction Documents, the Issuer may
effect payments of its earnings in respect of Pledged Assets to its members.

         SECTION 6.13.        OTHER AGREEMENTS.
                              ----------------

         The Issuer shall not become a party to, or permit any of its properties
to be bound by, any indenture, mortgage, instrument, contract, agreement, lease
or other undertaking, except this Agreement and the other Transaction Documents
to which it is a party; nor shall it amend or modify the provisions of its
certificate of formation or its limited liability company agreement or issue any
power of attorney except to the Indenture Trustee or the Servicer except in
accordance with the Transaction Documents.

         SECTION 6.14.        SEPARATE ENTITY EXISTENCE.
                              -------------------------

         The Issuer shall:

                  (i) Maintain its own deposit account or accounts, separate
         from those of any Affiliate, with commercial banking institutions. The
         funds of the Issuer will not be diverted to any other Person or for
         other than authorized uses of the Issuer.

                  (ii) Ensure that, to the extent that it shares the same
         officers or other employees as its member or Affiliates, the salaries
         of and the expenses related to providing benefits to such officers and
         other employees shall be fairly allocated among such entities, and each
         such entity shall bear its fair share of the salary and benefit costs
         associated with all such common officers and employees.

                  (iii) Ensure that, to the extent that it jointly contracts
         with its member or Affiliates to do business with vendors or service
         providers or to share overhead expenses, the costs incurred in so doing
         shall be allocated fairly among such entities, and each such entity
         shall bear its fair share of such costs. To the extent that the Issuer
         contracts or does business with vendors or service providers when the
         goods and services provided are partially for the benefit of any other
         Person, the costs incurred in so doing shall be fairly allocated to or
         among such entities for whose benefit the goods and services are
         provided, and each such entity shall bear its fair share of such costs.
         All material transactions between Issuer and any of its Affiliates
         shall be only on an arm's length basis.

                  (iv) To the extent that the Issuer, its member or Affiliates
         have offices in the same location, there shall be a fair and
         appropriate allocation of overhead costs among them, and each such
         entity shall bear its fair share of such expenses.

                                       60

<PAGE>

                  (v) Conduct its affairs strictly in accordance with its
         certificate of formation or its limited liability company agreement and
         observe all necessary, appropriate and customary company formalities,
         including, but not limited to, holding all regular and special members'
         meetings appropriate to authorize all entity action, keeping separate
         and accurate records of its meetings, passing all resolutions or
         consents necessary to authorize actions taken or to be taken, and
         maintaining accurate and separate books, records and accounts,
         including, but not limited to, payroll and intercompany transaction
         accounts.

                  (vi) Take or refrain from taking, as applicable, each of the
         activities specified in the "substantive consolidation" opinion of
         Chapman and Cutler, delivered on the Closing Date, upon which the
         conclusions expressed therein are based.

         SECTION 6.15.        LOCATION; RECORDS.
                              -----------------

         The Issuer (x) shall not move outside the State of Iowa, the location
of its chief executive office or its state of formation, without 30 days' prior
written notice to the Indenture Trustee and (y) shall not move or permit the
Servicer to move the location of the Contract Files from the location(s) thereof
on the Closing Date, without 30 days' prior written notice to the Indenture
Trustee and (z) will promptly take all actions required (including, but not
limited to, all filings and other acts necessary or advisable under the UCC of
each relevant jurisdiction in order to continue the first priority perfected
security interest of the Indenture Trustee in all Contracts in the Contracts
Pool). The Issuer will give the Indenture Trustee prompt notice of a change
within the State of Iowa of the location of its chief executive office.

         SECTION 6.16.        LIABILITY OF ISSUER; INDEMNITIES.
                              --------------------------------

         The Issuer shall be liable in accordance herewith only to the extent of
the obligations specifically undertaken by the Issuer under this Agreement.

         The Issuer shall indemnify, defend and hold harmless the Indenture
Trustee and the Servicer from and against any taxes that may at any time be
asserted against any such Person with respect to the transactions contemplated
herein and in the other Transaction Documents, including any sales, gross
receipts, general corporation, tangible personal property, Iowa personal
property replacement privilege or license taxes and costs and expenses in
defending against the same.

         The Issuer shall indemnify, defend and hold harmless the Indenture
Trustee and the Noteholders from and against any loss, liability or expense
incurred by reason of the Issuer's willful misfeasance, bad faith or negligence
(other than errors in judgment) in the performance of its duties under this
Agreement, or by reason of reckless disregard of its obligations and duties
under this Agreement.

         The Issuer shall indemnify, defend and hold harmless the Indenture
Trustee, its officers, directors, agents and employees, from and against all
costs, expenses, losses, claims, damages and liabilities arising out of or
incurred in connection with the acceptance or performance of the trusts and
duties herein and in the Indenture and any other document or transaction
contemplated in connection herewith or therewith, except to the extent that such
cost, expense, loss, claim,

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damage or liability, shall be due to the willful misfeasance, bad faith or
negligence of the Indenture Trustee.

         The Issuer shall indemnify, defend and hold harmless the Indenture
Trustee, their officers, directors, agents and employees, from and against any
loss, liability or expense incurred by reason of the Issuer's violation of
federal or state securities laws in connection with the offering and sale of the
Notes.

         Indemnification under this Section shall include, without limitation,
reasonable fees and expenses of counsel and expenses of litigation. If the
Issuer shall have made any indemnity payments pursuant to this Section and the
Person to or on behalf of whom such payments are made thereafter shall collect
any of such amounts from others, such Person shall promptly repay such amounts
to the Issuer, without interest.

         SECTION 6.17.        BANKRUPTCY LIMITATIONS.
                              ----------------------

         The Issuer shall not, without the affirmative vote of the board of
directors of the Issuer (which must include the affirmative vote of the
Independent Directors) (A) dissolve or liquidate, in whole or in part, or
institute proceedings to be adjudicated bankrupt or insolvent, (B) consent to
the institution of bankruptcy or insolvency proceedings against it, (C) file a
petition seeking or consent to reorganization or relief under any applicable
federal or state law relating to bankruptcy, (D) consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator (or other similar
official) of the corporation or a substantial part of its property, (E) make a
general assignment for the benefit of creditors, (F) admit in writing its
inability to pay its debts generally as they become due, or (G) take any entity
action in furtherance of the actions set forth in clauses (A) through (F) above.

         SECTION 6.18.        LIMITATION ON LIABILITY OF ISSUER AND OTHERS.
                              --------------------------------------------

         The Issuer and any director or officer or employee or agent of the
Issuer may rely in good faith on any document of any kind, prima facie properly
executed and submitted by any Person respecting any matters arising hereunder.
The Issuer and any director or officer or employee or agent of the Issuer shall
be reimbursed by the Indenture Trustee for any liability or expense incurred by
reason of the Indenture Trustee's willful misfeasance, bad faith or gross
negligence (except errors in judgment) in the performance of its duties
hereunder, or by reason of reckless disregard of its obligations and duties
hereunder. The Issuer shall not be under any obligation to appear in, prosecute
or defend any legal action that shall not be incidental to its obligations under
this Agreement, and that in its opinion may involve it in any expense or
liability.

         SECTION 6.19.        CHIEF EXECUTIVE OFFICE.
                              ----------------------

         During the term of this Agreement, and subject to the other terms and
provisions herein relating to changes in location, the Issuer will maintain its
chief executive office in one of the States of the United States.

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                                   ARTICLE VII

             ESTABLISHMENT OF ACCOUNTS; DISTRIBUTIONS; RESERVE FUND

         SECTION 7.01.        TRUST ACCOUNTS; COLLECTIONS.
                              ---------------------------

         (a) On or before the Closing Date, the Issuer shall establish the
Collection Account, Note Distribution Account, Reserve Fund, the Residual
Account and the Payahead Account, each in the name of the Indenture Trustee for
the benefit of the Noteholders. The Residual Account, Reserve Fund, and Payahead
Account may be sub-accounts of the Collection Account. All of the Trust Accounts
shall be established and maintained at JPMorgan Chase Bank. The Servicer and
Indenture Trustee are hereby required to ensure that each of the Trust Accounts
is established and maintained as an Eligible Deposit Account with a Qualified
Institution. If any institution with which any of the accounts established
pursuant to this Section 7.01(a) are established ceases to be a Qualified
Institution, the Servicer, or if the Servicer fails to do so, the Indenture
Trustee shall within 10 Business Days establish a replacement account at a
Qualified Institution after notice of such event. In no event shall the
Indenture Trustee be responsible for monitoring whether such Eligible
Institution shall remain a Qualified Institution.

         (b) The Servicer has established an account at LaSalle Bank, N.A. (the
"Primary Bank"), for the deposit of the amounts representing payments sent by
Obligors and the deposit of amounts representing payments sent by customers
relating to contracts that have not been pledged to the Indenture Trustee. The
Servicer, as agent of the Issuer, shall establish another account at the Primary
Bank (the "Lock Box Account"), which shall be an Eligible Deposit Account in the
name of the Indenture Trustee for the benefit of the Noteholders, for the
deposit of the amounts representing payments sent by Obligors. On each Business
Day the Servicer will cause the Primary Bank to deposit all Collections that
have been sent to the Primary Bank into the Lock Box Account, and within two
Business Days of the deposit into the Lock Box Account with the Primary Bank, at
no later than 12:00 noon, New York time, the Servicer will cause the Primary
Bank to cause the amounts in the Lock Box Account to be deposited into the
Collection Account. The Servicer, as agent of the Issuer, will also establish an
account at Wells Fargo Bank Iowa, National Association (the "Secondary Bank")
for the deposit of the amounts representing payments sent by Obligors and the
deposit of amounts representing payments sent by customers relating to lease
contracts which have not been pledged to the Indenture Trustee. The Servicer, as
agent of the Issuer, shall establish another account at the Secondary Bank (a
"Lock Box Account"), which shall be an Eligible Deposit Account in the name of
the Indenture Trustee for the benefit of the Noteholders, for the deposit of the
amounts representing payments sent by Obligors. On each Business Day the
Servicer will cause the Secondary Bank to deposit all Collections that have been
sent to its LockBox Account, and within two Business Days of the deposit into
such LockBox Account with the Secondary Bank, the Servicer shall cause the
Secondary Bank to cause the amounts in such LockBox Account to be deposited into
the Collection Account. The Primary Bank and the Secondary Bank are collectively
referred to herein as the "Local Banks."

         (c) On each Business Day, the Servicer shall review the amounts that
have been sent to the Local Banks and direct the Local Banks to transfer any
Excluded Amounts to the Servicer. If the Servicer receives any payments relating
to Collections, the Servicer shall hold in trust for

                                       63
<PAGE>

the benefit of the Noteholders any such payment until such time as the Servicer
transfers any such payment to the Indenture Trustee for deposit in the
Collection Account. The Servicer shall remit such payments to the Indenture
Trustee for deposit in the Collection Account within two Business Days of
receipt.

         (d) Notwithstanding Sections 7.01(b) and (c), the Servicer shall not be
required to deposit or cause to be deposited Collections on any Contracts in the
Contracts Pool on which (and to the extent that) the Servicer has previously
made a Servicer Advance that has not been reimbursed, which amounts the Servicer
may retain (as reimbursement of such Servicer Advance).

         (e) Notwithstanding Sections 7.01(b) and (c), if (i) the Servicer makes
a deposit into the Collection Account in respect of a Collection of a Contract
in the Contract Pool and such Collection was received by the Servicer in the
form of a check that is not honored for any reason, or (ii) the Servicer makes a
mistake with respect to the amount of any Collection and deposits an amount that
is less than or more than the actual amount of such Collection, the Servicer
shall appropriately adjust the amount subsequently deposited into the Collection
Account to reflect such dishonored check or mistake. Any Scheduled Payment in
respect of which a dishonored check is received shall be deemed not to have been
paid.

         SECTION 7.02.        RESERVE FUND DEPOSIT.
                              --------------------

         On the Closing Date, the Issuer shall deposit the Reserve Fund Initial
Deposit into the Reserve Fund from the net proceeds of the Notes.

         SECTION 7.03.        TRUST ACCOUNT PROCEDURES.
                              ------------------------

         If the Servicer so directs, in writing, the Indenture Trustee shall
accept such directions as directions of the Issuer and shall invest the amounts
in the Trust Accounts in Qualified Eligible Investments of the type specified in
such written direction that mature or are withdrawable not later than one
Business Day prior to the next succeeding Payment Date. Once such funds are
invested, the Indenture Trustee shall not change the investment of such funds.
Any loss on such investments shall be deposited in the applicable Trust Account
by the Servicer out of its own funds immediately as realized. Subject to the
restrictions herein, the Indenture Trustee may purchase a Qualified Eligible
Investment from itself or an Affiliate. Subject to the other provisions hereof,
the Indenture Trustee shall have sole control over each such investment and the
income thereon, and any certificate or other instrument evidencing any such
investment, if any, shall be delivered directly to the Indenture Trustee or its
agent, together with each document of transfer, if any, necessary to transfer
title to such investment to the Indenture Trustee in a manner which complies
with this Section 7.03. All Investment Earnings on investments of funds in the
Trust Accounts shall be deposited in the Collection Account pursuant to Section
7.01 and distributed on the next Payment Date pursuant to Section 7.05. The
Issuer agrees and acknowledges that the Indenture Trustee is to have "control"
(within the meaning of Section 8-102 of the UCC as enacted in Iowa) of
collateral comprised of "Investment Property" (within the meaning of Section
9-102(a)(49) of the UCC as enacted in Iowa) for all purposes of this Agreement.
In the absence of timely written direction from the Servicer, the Indenture

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<PAGE>

Trustee shall invest amounts in the Trust Accounts in Qualified Eligible
Investments of the type specified in clause (vi) of the definition of Eligible
Investments herein.

         SECTION 7.04.        NOTEHOLDER DISTRIBUTIONS.
                              ------------------------

         (a) Each Noteholder as of the related Record Date shall be entitled to
distributions payable to the Noteholder on the next succeeding Payment Date by
check mailed to such Noteholder at the address for such Noteholder appearing on
the Note Register or by wire transfer if such Noteholder provides written
instructions to the Indenture Trustee at least ten days prior to such Payment
Date.

         (b) The Indenture Trustee shall serve as the Paying Agent hereunder and
shall make the payments to the Noteholders required hereunder. The Indenture
Trustee hereby agrees that all amounts held by it for payment hereunder will be
held in trust for the benefit of the Noteholders.

         SECTION 7.05.        ALLOCATIONS AND DISTRIBUTIONS.
                              -----------------------------

         (a) Allocations and Distributions Prior to an Event of Default. On each
Payment Date prior to an Event of Default, the Servicer, pursuant to written
monthly payment instructions and notification received by the Indenture Trustee
no later than the related Determination Date, shall instruct the Indenture
Trustee to withdraw, and on such Payment Date the Indenture Trustee acting in
accordance with such written instructions shall withdraw, the amounts required
to be withdrawn from the Collection Account pursuant to this Section and
deposited to the Note Distribution Account (pursuant to Sections 3.01 and
8.02(b) of the Indenture) in order to make the following payments or allocations
from the Available Amounts for such Payment Date (in each case, such payment or
transfer to be made only to the extent funds remain available therefor after all
prior payments and transfers for such Payment Date have been made), in the
following order of priority:

                  (i) pay to the Servicer, the amount of any Unreimbursed
         Servicer Advance to the extent that such Unreimbursed Servicer Advance
         relates to a Scheduled Payment on a Contract that has subsequently been
         received or that the Servicer determines that such Unreimbursed
         Servicer Advance will not be recovered from the Contract with respect
         to which it relates;

                  (ii) pay to the Indenture Trustee the costs and expenses
         associated with the appointment of a Successor Servicer and the
         transition relating thereto (which amount shall not, taken in the
         aggregate with all other amounts withdrawn for such purpose during the
         term of the transaction, exceed the Trustee Cap);

                  (iii) pay to the Servicer, the monthly Servicing Fee for the
         preceding Collection Period together with any amounts in respect of the
         Servicing Fee that were due in respect of prior Collection Periods that
         remain unpaid;

                  (iv) pay to the Indenture Trustee (A) any amounts for the fees
         (to the extent such fees have not paid by the Servicer), expenses and
         indemnity payments, if any, due and payable to the Indenture Trustee
         and (B) until such time as a Successor Servicer has been appointed
         pursuant to Section 8.03, an amount equal to the product of (1)
         one-

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<PAGE>

         twelfth, (2) 0.025% and (3) the aggregate remaining Principal Balance
         of the Contracts Pool as of the first day of the related Collection
         Period;

                  (v) pay to the Noteholders, pro rata, an amount equal to any
         indemnity payments that Noteholders may have elected to pay to the
         Indenture Trustee in accordance with the terms of the Indenture;

                  (vi) pay to the Indenture Trustee on behalf of the Class A-1
         Noteholders, Class A-2 Noteholders, Class A-3 Noteholders and Class A-4
         Noteholders an amount equal to interest accrued in respect of the
         related Class A-1 Notes, Class A-2 Notes, Class A-3 Notes and Class A-4
         Notes at the Class A-1 Interest Rate, Class A-2 Interest Rate, Class
         A-3 Interest Rate and Class A-4 Interest Rate, respectively, for the
         Accrual Period immediately preceding such Payment Date, together with
         any such amounts that accrued in respect of prior Accrual Periods for
         which no allocation was previously made together with interest on such
         unpaid amounts from prior Collection Periods at the applicable interest
         rate for such Class of Notes; provided that if the Available Amounts
         remaining to be allocated pursuant to this clause are less than the
         full amount required to be so allocated, such remaining Available
         Amounts shall be allocated to each Holder of a Class A Note pro rata
         based upon the outstanding Principal Amount thereof;

                  (vii) pay to the Indenture Trustee on behalf of the Class B
         Noteholders an amount equal to the interest accrued thereon at the
         Class B Interest Rate for the Accrual Period immediately preceding such
         Payment Date, together with any amounts that accrued in respect of
         prior Accrual Periods for which no allocation was previously made
         together with interest on such unpaid amounts from prior Collection
         Periods at the Class B Interest Rate; provided that if the Available
         Amounts remaining to be allocated pursuant to this clause are less than
         the full amount required to be so paid, such remaining Available Amount
         shall be paid to each Class B Noteholder pro rata based on the
         outstanding Principal Amount thereof;

                  (viii) pay to the Indenture Trustee on behalf of the Class C
         Noteholders, an amount equal to the interest accrued thereon at the
         Class C Interest Rate for the Accrual Period immediately preceding such
         Payment Date, together with any such amounts that accrued in respect of
         prior Accrual Periods for which no allocation was previously made
         together with interest on such unpaid amounts from prior Collection
         Periods at the Class C Interest Rate; provided that if the Available
         Amounts remaining to be allocated pursuant to this clause are less than
         the full amount required to be so paid, such remaining Available
         Amounts shall be paid to each Class C Noteholder pro rata based on the
         outstanding Principal Amount thereof;

                  (ix) pay to the Indenture Trustee on behalf of the Class D
         Noteholders, an amount equal to the interest accrued thereon at the
         Class D Interest Rate for the Accrual Period immediately preceding such
         Payment Date, together with any such amounts that accrued in respect of
         prior Accrual Periods for which no allocation was previously made
         together with interest on such unpaid amounts from prior Collection
         Periods at the Class D Interest Rate; provided that if the Available
         Amounts remaining to be allocated pursuant to this clause are less than
         the full amount required to be so paid, such

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<PAGE>

         remaining Available Amounts shall be paid to each Class D Noteholder
         pro rata based on the outstanding Principal Amount thereof;

                  (x) pay to the Indenture Trustee, on behalf of the Class A-1
         Noteholders, the Class A Principal Payment Amount for such Payment
         Date; provided that if the Available Amounts remaining to be allocated
         pursuant to this clause are less than the full amount required to be so
         paid, such remaining Available Amounts shall be allocated to each Class
         A-1 Note pro rata based on the outstanding principal amount thereof;

                  (xi) pay to the Indenture Trustee, on behalf of the Class A-2
         Noteholders, (A) $0 until the Payment Date on which the Principal
         Amount of the Class A-1 Notes is $0; (B) on the Payment Date on which
         the Principal Amount of the Class A-1 Notes is being reduced to $0, the
         excess of the Monthly Principal Amount over the amount necessary to
         reduce the Principal Amount of the Class A-1 Notes to $0 on such date,
         but only up to the amount of the Class A Principal Payment Amount, and
         (C) on each subsequent Payment Date, the Class A Principal Payment
         Amount; provided that if the Available Amounts remaining to be
         allocated pursuant to this clause are less than the full amount
         required to be so paid, such remaining Available Amounts shall be
         allocated to each Class A-2 Note pro rata based on the outstanding
         principal amount thereof;

                  (xii) pay to the Indenture Trustee, on behalf of the Class A-3
         Noteholders, (A) $0 until the Payment Date on which the Principal
         Amount of the Class A-1 Notes and Class A-2 Notes is $0, (B) on the
         Payment Date on which the Principal Amount of the Class A-2 Notes is
         being reduced to $0, the excess of the amount necessary to reduce the
         Principal Amount of the Class A-2 Notes to $0 on such date, but only to
         the amount of the Class A Principal Payment Amount and (C) on each
         subsequent Payment Date, the Class A Principal Payment Amount; provided
         that if the Available Amounts remaining to be allocated pursuant to
         this clause are less than the full amount required to be so paid, such
         remaining Available Amounts shall be allocated to each Class A-3 Note
         pro rata based on the outstanding principal amount thereof;

                  (xiii) pay to the Indenture Trustee, on behalf of the Class
         A-4 Noteholders, (A) $0 until the Payment Date on which the Principal
         Amount of the Class A-1 Notes, Class A-2 Notes and Class A-3 Notes is
         $0, (B) on the Payment Date on which the Principal Amount of the Class
         A-3 Notes is being reduced to $0, the excess of the amount necessary to
         reduce the Principal Amount of the Class A-3 Notes to $0 on such date,
         but only to the amount of the Class A Principal Payment Amount and (C)
         on each subsequent Payment Date, the Class A Principal Payment Amount;
         provided that if the Available Amounts remaining to be allocated
         pursuant to this clause are less than the full amount required to be so
         paid, such remaining Available Amounts shall be allocated to each Class
         A-4 Note pro rata based on the outstanding principal amount thereof;

                  (xiv) pay to the Indenture Trustee, on behalf of the Class B
         Noteholders, the Class B Principal Payment Amount; provided that if the
         Available Amounts remaining to be allocated pursuant to this clause are
         less than the full amount required to be so paid, such remaining
         Available Amounts shall be allocated to each Class B Note pro rata
         based on the outstanding principal amount thereof;

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<PAGE>

                  (xv) pay to the Indenture Trustee, on behalf of the Class C
         Noteholders, the Class C Principal Payment Amount; provided that if the
         Available Amounts remaining to be allocated pursuant to this clause are
         less than the full amount required to be so paid, such remaining
         Available Amounts shall be allocated to each Class C Note pro rata
         based on the outstanding principal amount thereof;

                  (xvi) pay to the Indenture Trustee, on behalf of the Class D
         Noteholders, the Class D Principal Payment Amount; provided that if the
         Available Amounts remaining to be allocated pursuant to this clause are
         less than the full amount required to be so paid, such remaining
         Available Amounts shall be allocated to each Class D Note pro rata
         based on the outstanding principal amount thereof;

                  (xvii)   pay to the Indenture Trustee,

                           (A) on behalf of the Class A-1 Noteholders, on each
                  subsequent Payment Date, the Additional Principal, if any,
                  until the Principal Amount of the Class A-1 Notes is $0;
                  provided that if the Additional Principal exceeds the amount
                  needed to reduce the Principal Amount of the Class A-1 Notes
                  to $0, then such excess shall be paid to the Class A-2
                  Noteholders;

                           (B) on behalf of the Class A-2 Noteholders, (1) $0
                  until the Payment Date on which the Principal Amount of the
                  Class A-1 Notes is $0 and (2) on each subsequent Payment Date,
                  the Additional Principal, if any, until the Principal Amount
                  of the Class A-2 Notes is $0; provided that if the Additional
                  Principal exceeds the amount needed to reduce the Principal
                  Amount of the Class A-2 Notes to $0, then such excess shall be
                  paid to the Class A-3 Noteholders;

                           (C) on behalf of the Class A-3 Noteholders, (1) $0
                  until the Payment Date on which the Principal Amount of the
                  Class A-1 Notes and Class A-2 Notes is $0 and (2) on each
                  subsequent Payment Date, the Additional Principal, if any,
                  until the Principal Amount of the Class A-3 Notes is $0;
                  provided that if the Additional Principal exceeds the amount
                  needed to reduce the Principal Amount of the Class A-3 Notes
                  to $0, then such excess shall be paid to the Class A-4
                  Noteholders;

                           (D) on behalf of the Class A-4 Noteholders, (1) $0
                  until the Payment Date on which the Principal Amount of the
                  Class A-1 Notes, Class A-2 Notes and Class A-3 Notes is $0 and
                  (2) on each subsequent Payment Date, the Additional Principal,
                  if any, until the Principal Amount of the Class A-4 Notes is
                  $0; provided that if the Additional Principal exceeds the
                  amount needed to reduce the Principal Amount of the Class A-4
                  Notes to $0, then such excess shall be paid to the Class B
                  Noteholders;

                           (E) on behalf of the Class B Noteholders, (1) $0
                  until the Payment Date on which the Principal Amount of the
                  Class A-1 Notes, Class A-2 Notes, Class A-3 Notes and Class
                  A-4 Notes is $0 and (2) on each subsequent Payment Date, the
                  Additional Principal, if any, until the Principal Amount of
                  the Class B

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<PAGE>

                  Notes is $0; provided that if the Additional Principal
                  exceeds the amount needed to reduce the Principal Amount of
                  the Class B Notes to $0, then such excess shall be paid to
                  the Class C Noteholders;

                           (F) on behalf of the Class C Noteholders, (1) $0
                  until the Payment Date on which the Principal Amount of the
                  Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4
                  Notes and Class B Notes is $0 and (2) on each subsequent
                  Payment Date, the Additional Principal, if any, until the
                  Principal Amount of the Class C Notes is $0; and

                           (G) on behalf of the Class D Noteholders, (1) $0
                  until the Payment Date on which the Principal Amount of the
                  Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4
                  Notes, Class B Notes and Class C Notes is $0 and (2) on each
                  subsequent Payment Date, the Additional Principal, if any,
                  until the Principal Amount of the Class D Notes is $0; and

                           (H) if the sum of (i) the remaining Available
                  Amounts, (ii) any other funds available in the Collection
                  Account as of the Determination Date (which for purposes of
                  this subparagraph (H) will be deemed to be "Available
                  Amounts") and (iii) the remaining amounts held in the Reserve
                  Fund, the Residual Account and the Payahead Account equals or
                  exceeds the sum of the remaining Principal Amount of the Notes
                  and any accrued and unpaid Servicing Fee, pay to the Indenture
                  Trustee on behalf of the Noteholders an amount equal to such
                  remaining Principal Amount minus the aggregate amount of any
                  distributions then on deposit in the Note Distribution
                  Account, if any, for such Class of Notes established in
                  accordance with the Indenture and to be applied in reduction
                  of such principal amount in accordance with such Indenture;

                  (xviii) unless the Principal Amount of all Notes will be fully
         paid on such Payment Date, pay to the Indenture Trustee, for deposit
         into the Reserve Fund, such remaining Available Amounts up to such
         amount as may be required to cause the amounts on deposit in the
         Reserve Fund to equal the Required Reserve Amount;

                  (xix) unless the Principal Amount of all Notes will be fully
         paid on such Payment Date, if a Residual Event shall have occurred and
         be continuing, pay to the Indenture Trustee for deposit into the
         Residual Account, the lesser of (A) the remaining Available Amounts and
         (B) the aggregate amount of Residual Receipts actually collected and
         included in Available Amounts for that Payment Date;

                  (xx) pay to the Indenture Trustee all amounts due it and not
         paid pursuant to Section 7.05(a)(ii) by reason of the limitation in
         such clause;

                  (xxi) pay any remaining Available Amounts to the Issuer.

         Prior to the occurrence of an Event of Default, if the Available
Amounts are less than the amount required to make in full the payments and
allocations set forth in Sections 7.05(a)(i)-(xvii) above or to make principal
payments due with respect to any payment at final maturity of any Notes, amounts
held in the Residual Account shall be withdrawn in order

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<PAGE>

for any of such payments or allocations to be made and such amounts will be
considered as Available Amounts for such purpose only.

         Prior to the occurrence of an Event of Default, if the Available
Amounts and any amounts available from the Residual Account are less than the
amount required to make in full the payments and allocations set forth in
Sections 7.05(a)(i)-(xvii) above or to make principal payments due with respect
to any payment at final maturity of any Notes, amounts held in the Reserve Fund
shall be withdrawn in order for any of such payments or allocations to be made
and such amounts will be considered as Available Amounts for such purpose only.

         (b) Allocations and Payments after an Event of Default. On each Payment
Date after the occurrence and during the continuance of an Event of Default, the
Servicer, pursuant to monthly payment instructions and notification received by
the Indenture Trustee no later than the related Determination Date, shall
instruct the Indenture Trustee in writing to withdraw, and on such Payment Date
the Indenture Trustee acting in accordance with such instructions shall
withdraw, the amounts required to be withdrawn from the Collection Account
pursuant to this Section and deposited to the Note Distribution Account
(pursuant to Sections 3.01 and 8.02(b) of the Indenture) in order to make the
following payments or allocations from the Available Amounts for such Payment
Date (in each case, such payment or transfer to be made only to the extent funds
remain available therefor after all prior payments and transfers for such
Payment Date have been made), in the following order of priority:

                  (i) pay, first, to the Indenture Trustee (to the extent not
         paid by the Servicer) (A) the amount of any accrued and unpaid fees,
         expenses and indemnity payments due it either as Indenture Trustee or
         as a paying agent of the Issuer, any tax, fee, expense, charge or other
         loss incurred by it (to the extent not previously reimbursed)
         (including, without limitation, the expense of sale, taking or other
         proceeding, attorneys' fees and expenses, court costs, and any other
         expenditures incurred or expenditures or advances made by the Indenture
         Trustee in the protection, exercise or enforcement of any right, power
         or remedy or any damages sustained by the Indenture Trustee, liquidated
         or otherwise, upon the Event of Default giving rise to such
         expenditures or advances) and shall be applied by the Indenture Trustee
         in reimbursement of such costs and expenses, (B) the costs and expenses
         associated with the appointment of a Successor Servicer and the
         transition relating thereto (which amount described in clause (B) shall
         not, taken in the aggregate with all other amounts withdrawn in
         accordance with this Section 7.05(b)(i)(B) and Section 7.05(a)(ii)
         during the term of the transaction, exceed the Trustee Cap) and (C)
         until such time as a Successor Servicer has been appointed pursuant to
         Section 8.03, an amount equal to the product of (1) one-twelfth, (2)
         0.025% and (3) the aggregate remaining Principal Balance of the
         Contracts Pool as of the first day of the related Collection Period;

                  (ii) pay to the Noteholders, pro rata, an amount equal to any
         indemnity payments that Noteholders may have elected to pay to the
         Indenture Trustee in accordance with the terms of the Indenture;

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<PAGE>

                  (iii) pay to the Servicer, the monthly Servicing Fee for the
         preceding monthly period together with any amounts in respect of the
         Servicing Fee that were due in respect of prior monthly periods that
         remain unpaid;

                  (iv) pay to the Indenture Trustee on behalf of the Class A-1
         Noteholders, Class A-2 Noteholders, Class A-3 Noteholders and Class A-4
         Noteholders an amount equal to interest accrued in respect of the
         related Class A-1 Notes, Class A-2 Notes, Class A-3 Notes and Class A-4
         Notes at the Class A-1 Interest Rate, Class A-2 Interest Rate, Class
         A-3 Interest Rate and Class A-4 Interest Rate, respectively, for the
         Accrual Period immediately preceding such Payment Date, together with
         any such amounts that accrued in respect of prior Accrual Periods for
         which no allocation was previously made together with interest on such
         unpaid amounts from prior Collection Periods at the applicable interest
         rate for such Class of Notes; provided that if the Available Amounts
         remaining to be allocated pursuant to this clause are less than the
         full amount required to be so allocated, such remaining Available
         Amounts shall be allocated to each Holder of a Class A Note pro rata
         based upon the outstanding Principal Amount thereof;

                  (v) pay to the Indenture Trustee on behalf of the Class B
         Noteholders an amount equal to the interest accrued thereon at the
         Class B Interest Rate for the Accrual Period immediately preceding such
         Payment Date, together with any amounts that accrued in respect of
         prior Accrual Periods for which no allocation was previously made
         together with interest on such unpaid amounts from prior Collection
         Periods at the Class B Interest Rate; provided that if the Available
         Amounts remaining to be allocated pursuant to this clause are less than
         the full amount required to be so paid, such remaining Available Amount
         shall be paid to each Class B Noteholder pro rata based on the
         outstanding Principal Amount thereof;

                  (vi) pay to the Indenture Trustee on behalf of the Class C
         Noteholders, an amount equal to the interest accrued thereon at the
         Class C Interest Rate for the Accrual Period immediately preceding such
         Payment Date, together with any such amounts that accrued in respect of
         prior Accrual Periods for which no allocation was previously made
         together with interest on such unpaid amounts from prior Collection
         Periods at the Class C Interest Rate; provided that if the Available
         Amounts remaining to be allocated pursuant to this clause are less than
         the full amount required to be so paid, such remaining Available
         Amounts shall be paid to each Class C Noteholder pro rata based on the
         outstanding Principal Amount thereof;

                  (vii) pay to the Indenture Trustee on behalf of the Class D
         Noteholders, an amount equal to the interest accrued thereon at the
         Class D Interest Rate for the Accrual Period immediately preceding such
         Payment Date, together with any such amounts that accrued in respect of
         prior Accrual Periods for which no allocation was previously made
         together with interest on such unpaid amounts from prior Collection
         Periods at the Class D Interest Rate; provided that if the Available
         Amounts remaining to be allocated pursuant to this clause are less than
         the full amount required to be so paid, such remaining Available
         Amounts shall be paid to each Class D Noteholder pro rata based on the
         outstanding Principal Amount thereof;

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<PAGE>

                  (viii) pay to the Indenture Trustee, on behalf of Class A-1
         Noteholders, the Principal Amount of the Class A-1 Notes;

                  (ix) pay to the Indenture Trustee, on behalf of the Class A-2
         Noteholders, Class A-3 Noteholders and Class A-4 Noteholders, the
         Principal Amounts of the Class A-2 Notes, Class A-3 Notes and Class A-4
         Notes; provided that if the Available Amounts remaining to be allocated
         pursuant to this clause are less than the full amount required to be so
         paid, such remaining Available Amounts shall be allocated to each Class
         A-2 Note, Class A-3 Note and Class A-4 Note pro rata based on the
         outstanding principal amount of each such Class of Notes;

                  (x) pay to the Indenture Trustee, on behalf of the Class B
         Noteholders, the Principal Amount of the Class B Notes for such Payment
         Date; provided (i) that if the Available Amounts remaining to be
         allocated pursuant to this clause are less than the full amount
         required to be so paid, such remaining Available Amounts shall be
         allocated to each Class B Note pro rata based on the outstanding
         principal amount thereof, and (ii) if the amount to be allocated
         pursuant to this clause exceeds the amount needed to repay outstanding
         Class B Note principal in full, then such excess shall be applied in
         repayment of principal on the Class C Notes;

                  (xi) pay to the Indenture Trustee, on behalf of the Class C
         Noteholders, the Principal Amount of the Class C Notes for such Payment
         Date; provided (i) that if the Available Amounts remaining to be
         allocated pursuant to this clause are less than the full amount
         required to be so paid, such remaining Available Amounts shall be
         allocated to each Class C Note pro rata based on the outstanding
         principal amount thereof, and (ii) if the amount to be allocated
         pursuant to this clause exceeds the amount needed to repay outstanding
         Class C Note principal in full, then such excess shall be applied in
         repayment of principal on the Class D Notes;

                  (xii) pay to the Indenture Trustee, on behalf of the Class D
         Noteholders, the Principal Amount of the Class D Notes for such Payment
         Date; provided (i) that if the Available Amounts remaining to be
         allocated pursuant to this clause are less than the full amount
         required to be so paid, such remaining Available Amounts shall be
         allocated to each Class D Note pro rata based on the outstanding
         principal amount thereof, and (ii) if the amount to be allocated
         pursuant to this clause exceeds the amount needed to repay outstanding
         Class D Note principal in full, then such excess shall be applied as
         set forth in (xi) and (xiv) below;

                  (xiii) pay to the Indenture Trustee all amounts due it and not
         paid pursuant to Section 7.05(b)(i)(B) by reason of the limitation in
         such clause;

                  (xiv) pay to the Servicer, the amount of any Unreimbursed
         Servicer Advance to the extent that such Unreimbursed Servicer Advance
         relates to Scheduled Payment on a Contract that has subsequently been
         received or that the Servicer determines that such Unreimbursed
         Servicer Advance will not be recovered from the Contract with respect
         to which it relates; and

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<PAGE>

                  (xv) pay all other remaining Available Amounts to the Issuer.

         Following the occurrence and during the continuance of an Event of
Default, if the Available Amounts are less than the amount required to make in
full the payments and allocations set forth in Sections 7.05(b)(i)-(xii) above,
amounts held in the Residual Account shall be withdrawn in order for the
payments or allocations set forth in Sections 7.05(b)(i)-(xii) to be made and
such amounts will be considered as Available Amounts for such purpose only.
Amounts withdrawn from the Residual Account pursuant to the preceding sentence
shall be applied to repay principal of such Notes in such order of priority set
forth in 7.05(b)(i)-(xii) until the Residual Account is exhausted.

         Following the occurrence and during the continuance of an Event of
Default, if the Available Amounts and any amounts available from the Residual
Account are less than the amount required to make in full the payments and
allocations set forth in Sections 7.05(b)(i)-(xii) above, amounts held in the
Reserve Fund shall be withdrawn in order for the payments or allocations set
forth in Sections 7.05(b)(i)-(xii) to be made and such amounts will be
considered as Available Amounts for such purpose only. Amounts withdrawn from
the Reserve Fund pursuant to the preceding sentence shall be applied to repay
principal of such Notes in such order of priority set forth in 7.05(b)(i)-(xii)
until the Reserve Fund is exhausted.

                                  ARTICLE VIII

                       SERVICER DEFAULT; SERVICE TRANSFER

         SECTION 8.01.        SERVICER DEFAULT.
                              ----------------

         "Servicer Default" means the occurrence of any of the following:

         (a) any failure by the Servicer to make any payment, transfer or
deposit or to give instructions or notice to the Issuer or Indenture Trustee
pursuant to this Agreement on or before the date occurring three Business Days
after the date such payment, transfer, deposit, or such instruction or notice or
report is required to be made or given, as the case may be, under the terms of
this Agreement; or

         (b) failure on the part of the Servicer duly to observe or perform in
any material respect any other covenants or agreements of the Servicer set forth
in this Agreement that has a material adverse effect on the Noteholders, which
continues unremedied for a period of 30 days after the first to occur of (i) the
date on which written notice of such failure requiring the same to be remedied
shall have been given to the Servicer by the Indenture Trustee or the Issuer or
to the Servicer and the Indenture Trustee by the Noteholders or the Indenture
Trustee on behalf of such Noteholders of Notes aggregating not less than 25% of
the Principal Amount of any Class adversely affected thereby and (ii) the date
on which the Servicer becomes aware thereof and such failure continues to
materially adversely affect such Noteholders for such period; or

         (c) any representation, warranty or certification made by the Servicer
in this Agreement or in any certificate delivered pursuant to this Agreement
shall prove to have been incorrect when made, which has a material adverse
effect on the Noteholders and that continues to be incorrect in any material
respect for a period of 30 days after the first to occur of (i) the

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<PAGE>

date on which written notice of such incorrectness requiring the same to be
remedied shall have been given to the Servicer by the Indenture Trustee or the
Issuer, or to the Servicer, the Issuer and the Indenture Trustee by Noteholders
or by the Indenture Trustee on behalf of Noteholders of Notes aggregating not
less than 25% of the Principal Amount of any Class adversely affected thereby
and (ii) the date on which the Servicer becomes aware thereof, and such
incorrectness continues to materially adversely affect such Holders for such
period; or

         (d) an Insolvency Event shall occur with respect to the Servicer.

         Notwithstanding the foregoing, a delay in or failure of performance
referred to under clause (a) above for a period of five Business Days or
referred to under clause (b) or (c) for a period of 60 days (in addition to any
period provided in clause (a), (b) or (c)) shall not constitute a Servicer
Default until the expiration of such additional five Business Days or 60 days,
respectively, if such delay or failure could not be prevented by the exercise of
reasonable diligence by the Servicer and such delay or failure was caused by an
act of God or other events beyond the Servicer's control. Upon the occurrence of
any such event the Servicer shall not be relieved from using its best efforts to
perform its obligations in a timely manner in accordance with the terms of this
Agreement and the Servicer shall provide the Indenture Trustee and the Issuer
prompt notice of such failure or delay by it, together with a description of its
efforts to so perform its obligations. The Servicer shall immediately notify the
Indenture Trustee in writing of any Servicer Default.

         SECTION 8.02.        SERVICER TRANSFER.
                              -----------------

         (a) If a Servicer Default has occurred and is continuing, (x) the
Required Holders, or (y) the Indenture Trustee may, by written notice (a
"Termination Notice") delivered to the parties hereto, terminate the Servicer's
management, administrative, servicing, custodial and collection functions.

         (b) Upon delivery of the notice required by Section 8.02(a) (or, if
later, on a date designated therein), and on the date that a successor Servicer
shall have been appointed pursuant to Section 8.03 (such appointment being
herein called a "Servicer Transfer"), all rights, benefits, fees, indemnities,
authority and power of the Servicer under this Agreement, whether with respect
to the Contracts, the Contract Files or otherwise, shall pass to and be vested
in such successor (the "Successor Servicer") pursuant to and under this Section
8.02; and, without limitation, the Successor Servicer is authorized and
empowered to execute and deliver on behalf of the Servicer, as attorney-in-fact
or otherwise, any and all documents and other instruments, and to do any and all
acts or things necessary or appropriate to effect the purposes of such notice of
termination. The Servicer agrees to cooperate with the Successor Servicer in
effecting the termination of the responsibilities and rights of the Servicer
hereunder, including, without limitation, the transfer to the Successor Servicer
for administration by it of all cash amounts which shall at the time be held by
the Servicer for deposit, or have been deposited by the Servicer, in the
Collection Account, or for its own account in connection with its services
hereafter or thereafter received with respect to the Contracts. The Servicer
shall transfer to the Successor Servicer (i) all records held by the Servicer
relating to the Contracts in such electronic form as the Successor Servicer may
reasonably request and (ii) any Contract Files in the Servicer's possession. In
addition, the Servicer shall permit access to its premises (including all

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<PAGE>

computer records and programs) to the Successor Servicer or its designee. Upon a
Servicer Transfer, the Successor Servicer shall be entitled to receive the
Servicing Fee for performing the obligations of the Servicer.

         SECTION 8.03.  APPOINTMENT OF SUCCESSOR SERVICER; RECONVEYANCE;
                        SUCCESSOR SERVICER TO ACT.
                        -----------------------------------------------

         Upon delivery of the notice required by Section 8.02(a) (or, if later,
on a date designated therein), the Servicer shall continue to perform all
servicing functions under this Agreement until the date specified in the
Termination Notice or, if no such date is specified, until a date mutually
agreed by the Servicer and the Indenture Trustee. The Indenture Trustee shall as
promptly as possible after the giving of or receipt of a Termination Notice,
either (i) appoint a Successor Servicer, and such Successor Servicer shall
accept its appointment by a written assumption in a form acceptable to the
Indenture Trustee or (ii) succeed to all the responsibilities, duties and
liabilities of the Servicer under this Agreement. It is the intention of the
Indenture Trustee to appoint Textron Business Services Inc. (who has provided an
officer's certificate attached hereto as Exhibit K), if Textron Business
Services, Inc. is an Eligible Servicer at the time of such transition. It is
also the intention of the Indenture Trustee that on or before the Closing Date,
the Indenture Trustee shall enter into an arrangement with Textron Business
Services, Inc. whereby Textron Business Services, Inc. has agreed to accept its
appointment as Successor Servicer and perform all the responsibilities, duties
and liabilities as Servicer for a fee not to exceed the Servicing Fee based upon
a Servicing Fee Percentage equal to 0.75%. If (i) the Indenture Trustee does not
appoint Textron Business Services, Inc. as Successor Servicer or (ii) the
Indenture Trustee is unable to act as Successor Servicer or (iii) within 60 days
of delivery of a Termination Notice the Indenture Trustee is unable to obtain
any bids from Eligible Servicers and the Servicer shall have yet to cure the
Servicer Default, then the Indenture Trustee shall offer the Issuer, and the
Issuer shall offer the Originator, the right to accept retransfer of all the
Pledged Assets, and such parties may accept retransfer of such Pledged Assets in
consideration of the Issuer's delivery to the Collection Account on or prior to
the next upcoming Payment Date of a sum equal to (i) the Aggregate Principal
Amount of all Notes then outstanding, together with accrued and unpaid interest
thereon through such date of deposit (provided that the Indenture Trustee, if so
directed by the Required Holders in writing, need not accept and effect such
reconveyance in the absence of evidence (which may include valuations of an
investment bank or similar entity) reasonably acceptable to the Indenture
Trustee or Required Holders that such retransfer would not constitute a
fraudulent conveyance of the Issuer or the Originator) and (ii) all amounts
owing to the Indenture Trustee under the Indenture and hereunder.

         In the event that a Successor Servicer has not been appointed and has
not accepted its appointment at the time when the then Servicer has ceased to
act as Servicer, the Indenture Trustee without further action shall
automatically be appointed the Successor Servicer. Notwithstanding the
foregoing, if the Indenture Trustee is legally unable or prohibited from so
acting, it shall petition a court of competent jurisdiction to appoint any
established financial institution having a net worth of at least $50,000,000 and
whose regular business includes the servicing of contracts similar to the
Contracts (each an "Eligible Servicer") as the Successor Servicer hereunder. On
or after a Servicer Transfer, the Successor Servicer shall be the successor in
all respects to the Servicer in its capacity as servicer under this Agreement
and the transactions set forth or provided for herein and shall be subject to
all the responsibilities, duties

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and liabilities relating thereto placed on the Servicer by the terms and
provisions hereof, and the terminated Servicer shall be relieved of such
responsibilities, duties and liabilities arising after such Servicer Transfer;
provided, however, that (i) the Successor Servicer will not assume any
obligations of the Servicer described in Section 8.02 and (ii) the Successor
Servicer shall not be liable for any acts or omissions of the Servicer occurring
prior to such Servicer Transfer or for any breach by the Servicer of any of its
representations and warranties contained herein or in any related document or
agreement. As compensation therefor, the Successor Servicer shall be entitled to
receive reasonable compensation equal to the monthly Servicing Fee. The
Noteholders and the Indenture Trustee and such successor shall take such action,
consistent with this Agreement, as shall be necessary to effectuate any such
succession. To the extent the terminated Servicer has made Servicer Advances, it
shall be entitled to reimbursement of the same notwithstanding its termination
hereunder, to the same extent as if it had continued to service the Contracts
hereunder. In addition, it is understood and agreed that if an Event of Default
has occurred and a Servicer Transfer is being effected by action of the
Indenture Trustee hereunder, any documented expenses reasonably incurred by the
Indenture Trustee in connection with effecting such Servicer Transfer shall be
deemed expenses reimbursable from Available Amounts after an Event of Default
pursuant to Section 7.05(b)(i) hereof and Section 5.06(a)(first) of the
Indenture.

         SECTION 8.04.        NOTIFICATION TO NOTEHOLDERS.
                              ---------------------------

         (a) Promptly following the occurrence of any Servicer Default, the
Servicer shall give written notice thereof to the Indenture Trustee, the Issuer
and each Rating Agency at the addresses described in Section 13.04 hereof and to
the Noteholders at their respective addresses appearing on the Note Register.

         (b) Within 10 days following any termination or appointment of a
Successor Servicer pursuant to this Article VIII, the Indenture Trustee shall
give written notice thereof to each Rating Agency and the Issuer at the
addresses described in Section 13.04 hereof, and to the Noteholders at their
respective addresses appearing on the Note Register.

         SECTION 8.05.        EFFECT OF TRANSFER.
                              ------------------

         (a) After a Servicer Transfer, the terminated Servicer shall have no
further obligations with respect to the management, administration, servicing,
custody or collection of the Contracts and the Successor Servicer appointed
pursuant to Section 8.03 shall have all of such obligations, except that the
terminated Servicer will transmit or cause to be transmitted directly to the
Successor Servicer for its own account, promptly on receipt and in the same form
in which received, any amounts (properly endorsed where required for the
Successor Servicer to collect them) received as payments upon or otherwise in
connection with the Contracts.

         (b) A Servicer Transfer shall not affect the rights and duties of the
parties hereunder (including but not limited to the indemnities of the Servicer)
other than those relating to the management, administration, servicing, custody
or collection of the Contracts.

         SECTION 8.06.        DATABASE FILE.
                              -------------

         Monthly and otherwise upon reasonable request by the Indenture Trustee,
the predecessor Servicer will provide the Successor Servicer with a magnetic
tape containing the database file for each Contract (i) as of the Cutoff Date,
(ii) the Subsequent Cutoff Dates, (iii) thereafter, as of the last day of the
preceding Collection Period on the Determination Date prior to a Servicer
Default and (iv) on and as of the Business Day before the actual commencement of
servicing functions by the Successor Servicer following the occurrence of a
Servicer Default.

         SECTION 8.07.        SUCCESSOR SERVICER INDEMNIFICATION.
                              ----------------------------------

         The original Servicer shall defend, indemnify and hold the Successor
Servicer and any officers, directors, employees or agents of the Successor
Servicer harmless against any and all claims, losses, penalties, fines,
forfeitures, legal fees and related costs, judgments and any other costs, fees,
and expenses that the Successor Servicer may sustain in connection with the
claims asserted at any time by third parties against the Successor Servicer
which result from (i) any willful or negligent act taken or omission by the
Servicer or (ii) a breach of any representations of the Servicer in Section 3.07
hereof. The indemnification provided by this Section 8.07 shall survive the
termination of this Agreement and the removal or resignation of the Successor
Servicer.

         SECTION 8.08.        RESPONSIBILITIES OF THE SUCCESSOR SERVICER.
                              ------------------------------------------

         The Successor Servicer will not be responsible for delays attributable
to the Servicer's failure to deliver information, defects in the information
supplied by the Servicer or other circumstances beyond the control of the
Successor Servicer.

         The Successor Servicer will make arrangements with the Servicer for the
prompt and safe transfer of, and the Servicer shall provide to the Successor
Servicer, all necessary servicing files and records, including (as deemed
necessary by the Successor Servicer at such time): (i) microfiche loan
documentation, (ii) servicing system tapes, (iii) Contract payment history, (iv)
collections history and (v) the trial balances, as of the close of business on
the day immediately preceding conversion to the Successor Servicer, reflecting
all applicable Contract information. The current Servicer shall be obligated to
pay the costs associated with the transfer of the servicing files and records to
the Successor Servicer.

         The Successor Servicer shall have no responsibility and shall not be in
default hereunder nor incur any liability for any failure, error, malfunction or
any delay in carrying out any of its duties under this Agreement if any such
failure or delay results from the Successor Servicer acting in accordance with
information prepared or supplied by a Person other than the Successor Servicer
or the failure of any such Person to prepare or provide such information. The
Successor Servicer shall have no responsibility, shall not be in default and
shall incur no liability (i) for any act or failure to act by any third party,
including the Servicer, the Issuer or the Indenture Trustee or for any
inaccuracy or omission in a notice or communication received by the Successor
Servicer from any third party or (ii) which is due to or results from the
invalidity, unenforceability of any Contract with applicable law or the breach
or the inaccuracy of any representation or warranty made with respect to any
Contract.

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         If the Indenture Trustee or any other Successor Servicer assumes the
role of Successor Servicer hereunder, such Successor Servicer shall be entitled
to the benefits of (and subject to the provisions of) Section 5.05 concerning
delegation of duties to subservicers.

         SECTION 8.09.        RATING AGENCY CONDITION FOR SERVICER TRANSFER.
                              ---------------------------------------------

         Notwithstanding the foregoing provisions relating to a Servicer
Transfer, no Servicer Transfer shall be effective hereunder unless prior written
notice thereof shall have been given to the Rating Agencies.

                                   ARTICLE IX

                                     REPORTS

         SECTION 9.01.        MONTHLY REPORTS.
                              ---------------

         With respect to each Payment Date and the related Collection Period,
the Servicer will provide to the Indenture Trustee, each Rating Agency and First
Union Securities, Inc., on the related Determination Date, a monthly statement
(a "Monthly Report") substantially in the form of Exhibit H hereto.

         SECTION 9.02.        OFFICER'S CERTIFICATE.
                              ---------------------

         Each Monthly Report delivered pursuant to Section 9.01 shall be
accompanied by a certificate of a Servicing Officer certifying the accuracy of
the Monthly Report and that no Servicer Default or event that with notice or
lapse of time or both would become a Servicer Default has occurred, or if such
event has occurred and is continuing, specifying the event and its status.

         SECTION 9.03.        OTHER DATA.
                              ----------

         In addition, the Servicer shall, upon the request of the Indenture
Trustee, or any Rating Agency, furnish the Indenture Trustee or Rating Agency,
as the case may be, such underlying data used to generate a Monthly Report as
may be reasonably requested. The Servicer will also forward to the Indenture
Trustee each Rating Agency and First Union Securities, Inc. (a) within 120 days
after each fiscal quarter (other than the fiscal quarter which is also the end
of a fiscal year), commencing with the quarter ending August 31, 2002, the
unaudited quarterly financial statement of the Servicer and (b) within 120 days
after each fiscal year of the Servicer, commencing with the fiscal year ending
May 31, 2002, the annual financial statement of the Servicer, together with the
related report of the independent accountants to the Servicer. On the Payment
Date following the receipt of each such financial statements and report, the
Indenture Trustee will forward to each Noteholder of record a copy of such
financial statements and report.

         SECTION 9.04.        ANNUAL REPORT OF ACCOUNTANTS.
                              ----------------------------

         (a) The Servicer shall cause a firm of nationally recognized
independent certified public accountants (the "Independent Accountants"), who
may also render other services to the Servicer or its Affiliates, to deliver to
the Indenture Trustee, the Issuer and each Rating Agency,

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on or before August 31 (90 days after the end of the Servicer's fiscal year) of
each year, beginning on August 31, 2002, a report addressed to the Board of
Directors of the Servicer and the Indenture Trustee indicating that (i) with
respect to the twelve months ended the immediately preceding May 31 to the
effect that such Independent Accountants have audited the financial statements
of the Servicer, that as part of that audit, nothing came to the attention of
such Independent Accountant that causes them to believe that the Servicer was
not in compliance with any of the terms, covenants, provisions or conditions of
the relevant sections of the Agreement, insofar as they relate to accounting
matters, except for such exceptions as such Independent Accountants shall
believe to be immaterial and such other exceptions as shall be set forth in such
report, (ii) in connection with Independent Accountant's audit of the Servicer,
there were no exceptions or errors in records related to equipment leases and
loans serviced by the Servicer, except for such exceptions as such Independent
Accountants shall believe to be immaterial and such other exceptions as shall be
set forth in such report, and (iii) the Independent Accountant has performed
certain procedures as agreed by the Servicer, the Indenture Trustee (subject to
the provisions of this Section 9.04(a)) whereby the Independent Accountant will
obtain the Monthly Report for four months with respect to the twelve months
ended the immediately preceding May 31 and for each Monthly Report the
Independent Accountant will agree all amounts in the Monthly Report to the
Servicer's computer, accounting and other reports, which will include in such
report any amounts which were not in agreement. In the event such firm of
Independent Accountants requires the Indenture Trustee to agree to the
procedures performed by such firm of Independent Accountants, the Servicer shall
direct the Indenture Trustee in writing to so agree; it being understood and
agreed that the Indenture Trustee will deliver such letter of agreement in
conclusive reliance upon the direction of the Servicer, and the Indenture
Trustee will not make any independent inquiry or investigation as to, and shall
have no obligation or liability in respect of, the sufficiency, validity or
correctness of such procedures.

         (b) The Independent Accountant's report shall also indicate that the
firm is independent of the Servicer within the meaning of the Code of
Professional Ethics of the American Institute of Certified Public Accountants.

         SECTION 9.05.        ANNUAL STATEMENT OF COMPLIANCE FROM SERVICER.
                              --------------------------------------------

         The Servicer will deliver to the Indenture Trustee, and each of the
Rating Agencies, on or before August 31 of each year commencing August 31, 2002,
an Officer's Certificate stating that (a) a review of the activities of the
Servicer during the prior fiscal year and of its performance under this
Agreement was made under the supervision of the officer signing such certificate
and (b) to such officer's knowledge, based on such review, the Servicer has
fully performed or cause to be performed in all material respects all its
obligations under this Agreement and no Servicer Default has occurred or is
continuing, or, if there has been any default in the performance of any
obligation of the Servicer, specifying each such default known to such officer
and the nature and status thereof and the steps being taken or necessary to be
taken to remedy such event. A copy of such certificate may be obtained by any
Noteholder by a request in writing to the Indenture Trustee.

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         SECTION 9.06.        ANNUAL SUMMARY STATEMENT.
                              ------------------------

         On or prior to August 31 of each year, commencing August 31, 2002, the
Servicer shall prepare and provide to the Indenture Trustee, and each Rating
Agency, a cumulative summary of the information required to be included in the
Monthly Reports for the Collection Periods ending during the immediately
preceding fiscal year.

                                    ARTICLE X

                                   TERMINATION

         SECTION 10.01.       SALE OF PLEDGED ASSETS.
                              ----------------------

         (a) Upon any sale of the Pledged Assets pursuant to the Indenture, the
Servicer shall instruct the Indenture Trustee in writing to deposit the proceeds
from such sale after all payments and reserves therefrom have been made (the
"Insolvency Proceeds") in the Collection Account. On the Payment Date on which
the Insolvency Proceeds are deposited in the Collection Account (or, if such
proceeds are not so deposited on a Payment Date, on the Payment Date immediately
following such deposit), the Servicer shall instruct the Indenture Trustee in
writing to allocate and apply (after the application on such Payment Date of
Available Amounts and funds on deposit in the Reserve Fund, the Residual Account
and the Payahead Account pursuant to Section 7.05) the Insolvency Proceeds as if
(and in the same order of priority as) the Insolvency Proceeds were Available
Amounts being allocated and distributed on such date pursuant to Section
7.05(b).

         (b) Following the satisfaction and discharge of the Indenture and the
payment in full of the principal of and interest on the Notes, the Issuer will
succeed to the rights of the Noteholders hereunder.

                                   ARTICLE XI

               REMEDIES UPON MISREPRESENTATION; REPURCHASE OPTION

         SECTION 11.01.       REPURCHASES OF, OR SUBSTITUTION FOR, CONTRACTS
                              FOR BREACH OF REPRESENTATIONS AND WARRANTIES.
                              ----------------------------------------------

         Upon a discovery by the Servicer, the Issuer or the Indenture Trustee
of a breach of a representation or warranty of the Originator as set forth in
Section 3.01, Section 3.02, Section 3.03, Section 3.04, and Section 3.05 or as
made or deemed made in any Addition Notice or any Subsequent Transfer Agreement
relating to Substitute Contracts that materially adversely affects the interest
of the Noteholders, the Issuer or their successors or assigns in such Contract
(without regard to the benefits of the Reserve Fund or the Residual Account) (an
"Ineligible Contract"), or of an inaccuracy with respect to the representations
as to concentrations of the Initial Contracts made under Section 3.05, the party
discovering the breach shall give prompt written notice to the other parties
(and the Servicer shall, with respect to an inaccuracy concerning
concentrations, select one or more Contracts, without employing adverse
selection, to be the related Excess Contract for purposes of this Section),
provided, that the Indenture Trustee shall have no duty or obligation to inquire
or to investigate the breach by the Originator of any of

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<PAGE>

such representations or warranties. The Originator shall repurchase each such
Ineligible Contract or Excess Contract, at a repurchase price equal to the
Transfer Deposit Amount, not later than the next succeeding Determination Date
following the date the Originator becomes aware of, or receives written notice
from the Indenture Trustee, the Servicer or the Issuer of, any such breach or
inaccuracy and which breach or inaccuracy has not otherwise been cured;
provided, however, that if the Originator is able to effect a substitution for
any such Ineligible Contract or Excess Contract in compliance with Section 2.04,
the Originator may, in lieu of repurchasing such Contract, effect a substitution
for such affected Contract with a Substitute Contract (subject to the 10%
limitation set forth in Section 2.04 (b)(x)) not later than the date a
repurchase of such affected Contract would be required hereunder, and provided
further that with respect to a breach of representation or warranty relating to
the Contracts in the aggregate and not to any particular Contract the Originator
may select Contracts (without adverse selection) to repurchase (or substitute
for) such that had such Contracts not been included as part of the Conveyed
Assets (and, in the case of a substitution, had such Substitute Contract been
included as part of the Conveyed Assets instead of the selected Contract) there
would have been no breach of such representation or warranty. Notwithstanding
any other provision of this Agreement, the obligation of the Originator
described in this Section 11.01 shall not (a) terminate or be deemed released by
any party hereto upon a Servicer Transfer pursuant to Article VIII or (b)
include any obligation to make payment on account of a breach of a Contract by
an Obligor subsequent to the date on which such Contract was transferred to the
Issuer. The repurchase obligation described in this Section 11.01 is in no way
to be satisfied with monies in the Reserve Fund, the Residual Account or the
Payahead Account.

         SECTION 11.02.       REASSIGNMENT OF REPURCHASED OR SUBSTITUTED
                              CONTRACTS.
                              ------------------------------------------

         Upon receipt by the Indenture Trustee for deposit in the Collection
Account of the amounts described in Section 11.01 or Section 11.03 (or upon the
Subsequent Transfer Date related to a Substitute Contract described in Section
11.01), and upon receipt of an Officer's Certificate of the Servicer in the form
attached hereto as Exhibit F, the Indenture Trustee shall assign to the Issuer
and the Issuer shall assign to the Originator all of the Issuer's right, title
and interest in the repurchased or substituted Contract and related Conveyed
Assets without recourse, representation or warranty. Such reassigned Contract
shall no longer thereafter be included in any calculations of Principal Balances
required to be made hereunder or otherwise be deemed a part of the Conveyed
Assets.

                                   ARTICLE XII

                             ORIGINATOR INDEMNITIES

         SECTION 12.01.       ORIGINATOR'S INDEMNIFICATION.
                              ----------------------------

         The Originator will defend and indemnify the Issuer, the Indenture
Trustee, any agents of the Indenture Trustee and the Noteholders (any of which,
an "Indemnified Party") against any and all costs, expenses, losses, damages,
claims and liabilities, joint or several, including reasonable fees and expenses
of counsel and expenses of litigation (collectively, "Costs") arising out of or
resulting from (i) this Agreement, the Transaction Documents or any document or
transaction contemplated in connection herewith or therewith or the use,
ownership or operation

                                       81

<PAGE>

of any Equipment by the Originator or the Servicer or any Affiliate of either,
(ii) any representation or warranty or covenant made by the Originator in this
Agreement being untrue or incorrect (subject to the limitations described in the
preamble to Article Three of this Agreement), and (iii) any untrue statement or
alleged untrue statement of a material fact contained in the Prospectus or in
any amendment thereto or the omission or alleged omission to state therein a
material fact necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement was made in conformity with information furnished to Issuer by the
Originator specifically for use therein; provided, however, that the Originator
shall not be required to so indemnify any such Indemnified Party for such Costs
to the extent that such Cost shall be due to or arise from the willful
misfeasance, bad faith or negligence of such Indemnified Party. Notwithstanding
any other provision of this Agreement, the obligation of the Originator under
this Section 12.01 shall not terminate upon a Servicer Transfer pursuant to
Article Eight of this Agreement and shall survive any termination of that
agreement or this Agreement and the earlier removal or resignation of the
Indenture Trustee.

         SECTION 12.02.       LIABILITIES TO OBLIGORS.
                              -----------------------

         No obligation or liability to any Obligor under any of the Contracts is
intended to be assumed by the Indenture Trustee, the Issuer or the Noteholders
under or as a result of this Agreement and the transactions contemplated hereby.

         SECTION 12.03.       TAX INDEMNIFICATION.
                              -------------------

         (a) The Originator agrees to pay, and to indemnify, defend and hold
harmless the Issuer, Indenture Trustee or the Noteholders from, any taxes which
may at any time be asserted with respect to, and as of the date of, the transfer
of the Contracts to the Issuer and the pledge by the Issuer to the Indenture
Trustee, including, without limitation, any sales, gross receipts, general
corporation, personal property, privilege or license taxes and costs, expenses
and reasonable counsel fees in defending against the same, whether arising by
reason of the acts to be performed by the Originator or the Servicer under this
Agreement or imposed against the Issuer, a Noteholder or otherwise.
Notwithstanding any other provision of this Agreement, the obligation of the
Originator under this Section 12.03 shall not terminate, with respect to
obligations incurred by the Servicer prior to a Servicer Transfer, upon a
Servicer Transfer pursuant to Article Eight of this Agreement and shall survive
any termination of this Agreement.

         (b) The Originator agrees to pay and to indemnify, defend and hold
harmless the Issuer and the Indenture Trustee, on an after-tax basis (as
hereinafter defined), from any state or local personal property taxes, gross
rent taxes, leasehold taxes or similar taxes which may at any time be asserted
with respect to the ownership of the Contracts (including security interests
therein) and the receipt of rentals therefrom by the Issuer, and costs, expenses
and reasonable counsel fees in defending against the same, excluding, however,
taxes based upon or measured by gross or net income or receipts (other than
taxes imposed specifically with respect to rentals). As used in this Section,
the term "after-tax basis" shall mean, with respect to any payment to be
received by an indemnified person, that the amount to be paid by the Originator
shall be equal to the sum of (i) the amount to be received without regard to
this sentence, plus (ii) any additional

                                       82

<PAGE>

amount that may be required so that after reduction by all taxes imposed under
any federal, state and local law, and taking into account any current credits or
deductions arising therefrom, resulting either from the receipt of the payments
described in both clauses (i) and (ii) hereof, such sum shall be equal to the
amount described in clause (i) above.

         SECTION 12.04.       REAL PROPERTY COLLATERAL.
                              ------------------------

         The Originator hereby agrees that if any real property collateral
securing any Contract described in Section 3.02(e) hereof becomes the subject of
any claims, proceedings, liens or encumbrances with respect to any material
violation or claimed material violation of any federal or state environmental
laws or regulations, such Contract shall for all purposes hereunder be, at and
following the time of discovery by the Originator, the Issuer, the Servicer or
the Indenture Trustee (it being understood and agreed that the Indenture Trustee
is under no duty of investigation) of such fact, deemed an Ineligible Contract
subject to the same remedial and recourse provisions hereunder as other
Contracts determined to be Ineligible Contracts hereunder.

         SECTION 12.05.       OPERATION OF INDEMNITIES.
                              ------------------------

         Indemnification under this Article Twelve shall include, without
limitation, reasonable fees and expenses of counsel and expenses of litigation.
If the Originator has made any indemnity payments to the Issuer or the Indenture
Trustee pursuant to this Article Twelve and the Issuer or the Indenture Trustee
thereafter collects any of such amounts from others, the Issuer or the Indenture
Trustee will repay such amounts collected to the Originator.

                                  ARTICLE XIII

                                  MISCELLANEOUS

         SECTION 13.01.       AMENDMENT.
                              ---------

         (a) This Agreement may be amended by the Originator, the Issuer, the
Servicer and the Indenture Trustee, collectively, without the consent of any
Noteholders, to cure any ambiguity, to correct or supplement any provisions in
this Agreement which are inconsistent with the provisions herein, or to add any
other provisions with respect to matters or questions arising under this
Agreement that shall not be inconsistent with the provisions of this Agreement,
provided, however that any such action shall not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Noteholder.

         (b) This Agreement may also be amended from time to time by the
Originator, the Issuer, the Servicer and the Indenture Trustee, with the consent
of the Required Holders, for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Noteholders; provided, however, that
no such amendment shall (i) increase or reduce in any manner the amount of, or
accelerate or delay the timing of or change the method of calculating (A)
Collections of payments on the Contracts or distributions that shall be required
to be made

                                       83

<PAGE>

on any Note (including by way of amendment of related definitions), or (B) the
manner in which the Reserve Fund or Residual Account is applied, or (ii) change
in any manner (including through amendment of related definitions), the Holders
which are required to consent to any such amendment, (iii) make any Note payable
in money other than Dollars, without the consent of the Holders of all Notes of
the relevant affected Class then outstanding or (iv) change the definition of or
the manner of calculating the Class A-1 Principal Payment Amount, the Class A-2
Principal Payment Amount, the Class A-3 Principal Payment Amount, the Class A-4
Principal Payment Amount, the Class B Principal Payment Amount, the Class C
Principal Payment Amount, the Class C Principal Payment Amount, the Class D
Principal Payment Amount, the Additional Principal, the Discounted Contract
Balance, the Required Holders, the amounts available for distribution to
noteholders or the principal amount of the notes without the consent of each
noteholder.

         (c) Prior to the execution of any such amendment or consent, the
Indenture Trustee shall furnish written notification of the substance of such
amendment or consent, together with a copy thereof, to each Rating Agency.

         (d) Promptly after the execution of any such amendment or consent, the
Indenture Trustee shall furnish written notification of the substance of such
amendment or consent to each Noteholder. It shall not be necessary for the
consent of Noteholders pursuant to Section 13.01(b) 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 of evidencing the authorization by Noteholders of the execution
thereof shall be subject to such reasonable requirements as the Indenture
Trustee may prescribe.

         (e) Prior to the execution of any amendment to this Agreement, the
Indenture Trustee shall be entitled to receive and conclusively rely upon an
Opinion of Counsel stating that the execution of such amendment is authorized
and permitted by this Agreement. The Indenture Trustee may, but shall not be
obligated to, enter into any such amendment which affects the Indenture
Trustee's own rights, duties, indemnities or immunities under this Agreement or
otherwise.

         SECTION 13.02.       PROTECTION OF TITLE.
                              -------------------

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

         (b) Neither the Originator, the Issuer nor the Servicer shall change
its name, identity or corporate structure in any manner that would, could or
might make any financing statement or continuation statement filed in accordance
with Section 4.02(a) seriously misleading within the meaning of Section 9-506 of
the UCC, unless it shall have given the Issuer and the Indenture Trustee at
least 30 days' prior written notice thereof and shall have promptly filed
appropriate amendments to all previously filed financing statements or
continuation statements.

                                       84

<PAGE>

         (c) The Originator, the Issuer and the Servicer shall give the
Indenture Trustee at least 30 days' prior written notice of any relocation of
the principal executive office of the Originator, the Issuer or the Servicer if,
as a result of such relocation, the applicable provisions of the UCC would
require filing of any amendment of any previously filed financing or
continuation statement or of any new financing statement, and the Servicer shall
promptly file or cause to be filed any such amendment or new financing
statement. The Servicer shall at all times maintain each office from which it
shall service Contracts, and its principal executive office, within the United
States.

         (d) The Servicer shall maintain or cause to be maintained accounts and
records as to each Contract accurately and in sufficient detail to permit (i)
the reader thereof to know at any time the status of such Contract, including
payments and recoveries made and payments owing (and the nature of each) and
(ii) reconciliation between payments or recoveries on (or with respect to) each
Contract and the amounts from time to time deposited in or credited to the
Collection Account in respect of each Contract.

         (e) The Servicer shall maintain or cause to be maintained its computer
systems so that, from and after the time of sale under this Agreement of the
Contracts, the Servicer's master computer records (including any backup
archives) that shall refer to a Contract indicate clearly the interest of the
Issuer and the Indenture Trustee in such Contract and that such Contract is
owned by the Issuer and has been pledged to the Indenture Trustee. Indication of
the Issuer's ownership of and the Indenture Trustee's interest in a Contract
shall be deleted from or modified on the Servicer's computer systems when, and
only when, the related Contract shall have been paid in full or repurchased or
substituted for.

         (f) The Servicer shall deliver to the Issuer, the Indenture Trustee and
each Rating Agency promptly after the execution and delivery of this Agreement
and of each amendment hereto, an Opinion of Counsel either (A) stating that, in
the opinion of such counsel, all financing statements and continuation
statements have been executed and filed that are necessary fully to preserve and
protect the interest of the Issuer and the Indenture Trustee and reciting the
details of each filing or referring to prior Opinions of Counsel in which such
details are given, or (B) stating that, in the opinion of such counsel, no such
action shall be necessary to preserve and protect such interest.

         SECTION 13.03.       GOVERNING LAW.
                              -------------

         (a) This Agreement shall be construed in accordance with the laws of
the State of New York and the obligations, rights, and remedies of the parties
under the Agreement shall be determined in accordance with such laws.

         (b) EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT. Each party hereto (i) certifies that no representative, agent or
attorney of any other party has represented, expressly or otherwise, that such
other party would not, in the event of litigation, seek to enforce the foregoing
waiver and (ii) acknowledges that it and the other parties hereto have been
induced to

                                       85

<PAGE>

enter into this Agreement by, among other things, the mutual waivers and
certifications in this Section 13.03(b).

         SECTION 13.04.       NOTICES.
                              -------

         All notices, demands, certificates, requests and communications
hereunder ("notices") shall be in writing and shall be effective (a) upon
receipt when sent through the U.S. mails, registered or certified mail, return
receipt requested, postage prepaid, with such receipt to be effective the date
of delivery indicated on the return receipt, or (b) one Business Day after
delivery to an overnight courier, or (c) on the date personally delivered to an
Authorized Officer of the party to which sent, or (d) on the date transmitted by
legible telecopier transmission with a confirmation of receipt, in all cases
addressed to the recipient as follows:

                   (i)     If to the Servicer or Originator:

                           GreatAmerica Leasing Corporation
                           625 First Street SE, Suite 800
                           Cedar Rapids, IA  52401
                           Attention: Chief Financial Officer

                           Fax No.:  (319) 365-9607

                  (ii)     If to the Issuer:

                           GreatAmerica Leasing Receivables 2002-1, L.L.C.
                           625 First Street SE, Suite 601
                           Cedar Rapids, IA  52401
                           Attention: President

                           Fax No.:  (319) 366-7577

                 (iii)     If to the Indenture Trustee:

                           JPMorgan Chase Bank
                           450 West 33rd Street
                           14th Floor
                           New York, New York  10001
                           Attention: Institutional Trust Services,
                                      GreatAmerica Leasing Receivable 2002-1
                           Fax No.:  (212) 946-8302

                                       86

<PAGE>

                  (iv)     If to S&P:

                           Standard & Poor's Ratings Group
                           55 Water Street
                           41st Floor
                           New York, New York 10004
                           Attention:  Surveillance:  Asset Backed Services

                           Fax No.:  (212) 438-2662

                   (v)     If to Fitch:

                           Fitch, Inc.
                           55 East Monroe Street
                           35th Floor
                           Chicago, Illinois  60603
                           Attention:  ABS Monitoring

                           Fax No.:  (312) 368-2069

                  (vi)     If to Moody's:

                           Moody's Investors Service, Inc.
                           99 Church Street
                           4th Floor
                           New York, New York  10007
                           Attention:  ABS Monitoring Department

                           Fax No.:  (212) 298-7139

                 (vii)     If to the Underwriter:

                           First Union Securities, Inc.
                           One First Union Center, Mail Code:  NC0610
                           301 South College Street
                           Charlotte, North Carolina 28288-0610
                           Attention:  Asset Securitization Division

                           Fax No.:  (704) 374-3254

Each party hereto may, by notice given in accordance herewith to each of the
other parties hereto, designate any further or different address to which
subsequent notices shall be sent.

         SECTION 13.05.       SEVERABILITY OF PROVISIONS.
                              --------------------------

         If one or more of the covenants, agreements, provisions or terms of
this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms

                                       87

<PAGE>

shall be deemed severable from the remaining covenants, agreements, provisions
or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Notes or the
rights of the Holders thereof.

         SECTION 13.06.       THIRD PARTY BENEFICIARIES.
                              -------------------------

         Except as otherwise specifically provided herein, the parties hereto
hereby manifest their intent that no third party, other than the Indenture
Trustee, shall be deemed a third party beneficiary of this Agreement, and
specifically that the Obligors are not third party beneficiaries of this
Agreement.

         SECTION 13.07.       COUNTERPARTS.
                              ------------

         This Agreement may be executed by facsimile signature and in several
counterparts, each of which shall be an original and all of which shall together
constitute but one and the same instrument.

         SECTION 13.08.       HEADINGS.
                              --------

         The headings of the various Articles and Sections herein are for
convenience of reference only and shall not define or limit any of the terms or
provisions hereof.

         SECTION 13.09.       NO BANKRUPTCY PETITION.
                              ----------------------

         Each of the Originator, the Indenture Trustee, the Servicer, the Issuer
and each Holder (by acceptance of the applicable Notes) covenants and agrees
that, prior to the date that is one year and one day after the payment in full
of all amounts owing in respect of all Outstanding Notes, it will not institute
against the Issuer or join any other Person in instituting against the Issuer,
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or other similar proceedings under the laws of the United States or
any state of the United States provided, however, that nothing herein shall
prohibit the Indenture Trustee from filing proofs of claim or otherwise
participating in any such proceedings instituted by any other Person. This
Section 13.09 will survive the termination of this Agreement.

         SECTION 13.10.       JURISDICTION.
                              ------------

         Any legal action or proceeding with respect to this Agreement may be
brought in the courts of the United States for the Southern District of New
York, and by execution and delivery of this Agreement, each party hereto
consents, for itself and in respect of its property, to the non-exclusive
jurisdiction of those courts. Each such party irrevocably waives any objection,
including any objection to the laying of venue or based on the grounds of forum
non conveniens, which it may now or hereafter have to the bringing of any action
or proceeding in such jurisdiction in respect of this Agreement or any document
related hereto.

                                       88

<PAGE>

         SECTION 13.11.      PROHIBITED TRANSACTIONS WITH RESPECT TO THE ISSUER.
                             --------------------------------------------------

         The Originator shall not:

               (a) Provide credit to any Noteholder for the purpose of enabling
          such Noteholder to purchase Notes, respectively;

               (b) Purchase any Notes in an agency or trustee capacity; or

               (c) Except in its capacity as Servicer as provided in this
          Agreement, lend any money to the Issuer.

         SECTION 13.12.       MERGER OR CONSOLIDATION OF ORIGINATOR OR SERVICER.
                              -------------------------------------------------

         (a) Each of the Originator and the Servicer will keep in full force and
effect its existence, rights and franchise as a Iowa corporation, and each of
the Originator and the Servicer will obtain and preserve its qualification to do
business as a foreign corporation in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Agreement and of any of the Contracts and to perform its
duties under this Agreement.

         (b) Any person into which the Originator or the Servicer, as the case
may be, may be merged or consolidated, or any corporation resulting from such
merger or consolidation to which the Originator or the Servicer, as the case may
be, is a party, or any person succeeding by acquisition or transfer to
substantially all of the assets and the business of the Originator or the
Servicer, as the case may be, shall be the successor to the Originator or the
Servicer, as the case may be, hereunder, without execution or filing of any
paper or any further act on the part of any of the parties hereto,
notwithstanding anything herein to the contrary.

         (c) Upon the merger or consolidation of the Originator or the Servicer,
as the case may be, as described in this Section 13.12, the Originator or the
Servicer, as the case may be, shall provide the Indenture Trustee and the Rating
Agencies notice of such merger, consolidation or transfer of substantially all
of the assets and business within thirty (30) days after completion of the same.

         SECTION 13.13.       ASSIGNMENT OR DELEGATION BY THE ORIGINATOR.
                              ------------------------------------------

         Except as specifically authorized hereunder, the Originator may not
convey and assign or delegate any of its rights or obligations hereunder absent
the prior written consent of the Issuer and the Indenture Trustee, and any
attempt to do so without such consent shall be void.

                                       89

<PAGE>

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

                           GREATAMERICA LEASING RECEIVABLES 2002-1, L.L.C.

                           By:      GREATAMERICA LEASING CORPORATION,
                                    as Member

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

                           GREATAMERICA LEASING CORPORATION,
                           as Servicer and as Originator

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

<PAGE>

                           JPMORGAN CHASE BANK, not in its individual capacity
                           but solely as Indenture Trustee

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

<PAGE>

CHAR1\623241_ 16

                                    EXHIBIT A

                               FORM OF ASSIGNMENT

         In accordance with the Transfer and Servicing Agreement (the "Transfer
and Servicing Agreement") dated as of March 1, 2002 made by and between the
undersigned, as Issuer ("Issuer"), GreatAmerica Leasing Corporation, as Servicer
and as Originator and JPMorgan Chase Bank, as Indenture Trustee, the undersigned
does hereby sell, transfer, convey and assign, set over and otherwise convey to
the Issuer (i) all the right, title and interest of the Originator in and to the
Initial Contracts listed on the initial List of Contracts delivered on the
Closing Date (including, without limitation, all rights to receive Collections
with respect thereto on or after the Initial Cutoff Date, but excluding any
rights to receive payments which were collected pursuant thereto prior to the
Initial Cutoff Date), and (ii) all other Contract Assets relating to the
foregoing.

         Capitalized terms used herein have the meaning given such terms in the
Transfer and Servicing Agreement.

         This Assignment is made pursuant to and in reliance upon the
representation and warranties on the part of the undersigned contained in
Article III of the Agreement and no others.

         IN WITNESS WHEREOF, the undersigned has caused this Assignment to be
duly executed this ___ day of __________, 2002.

                                   GREATAMERICA LEASING CORPORATION

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

<PAGE>

                                    EXHIBIT B

                      FORM OF CLOSING CERTIFICATE OF ISSUER

                 GREATAMERICA LEASING RECEIVABLES 2002-1, L.L.C.

                              OFFICER'S CERTIFICATE

         The undersigned certifies that he/she is [___________] of GreatAmerica
Leasing Receivables 2002-1, L.L.C., a Delaware limited liability company (the
"Issuer"), and that as such is duly authorized to execute and deliver this
certificate on behalf of the Issuer in connection with the Transfer and
Servicing Agreement (the "Agreement") dated as of March 1, 2002 (the "Effective
Date") by and among the Issuer, JPMorgan Chase Bank (the "Indenture Trustee"),
as Indenture Trustee and GreatAmerica Leasing Corporation ("GreatAmerica"), as
Servicer and as Originator (all capitalized terms used herein without definition
having the respective meanings set forth in the Agreement), and further
certifies as follows:

                  (1) Attached hereto as Exhibit I is a true and correct copy of
         the Certificate of Formation of the Issuer, together with all
         amendments thereto as in effect on the date hereof.

                  (2) There has been no other amendment or other document filed
         affecting the Certificate of Formation of the Issuer since __________
         ___, 2002 and no such amendment has been authorized by the members of
         the Issuer.

                  (3) Attached hereto as Exhibit II is a Certificate of the
         Secretary of State of the State of Delaware dated __________ ___, 2002
         stating that the Issuer is duly formed under the laws of the State of
         Delaware and is in good standing.

                  (4) Attached hereto as Exhibit III is a true and correct copy
         of the Limited Liability Company Agreement of the Issuer, as amended,
         which were in full force and effect on __________ ___, 2002, and at all
         times subsequent thereto.

                  (5) Attached hereto as Exhibit IV is a true and correct copy
         of resolutions adopted pursuant to the unanimous written consent of the
         board of directors of the Issuer relating to the execution, delivery
         and performance of (among other things) the Agreement; the Indenture
         (as defined in the Agreement); the Underwriting Agreement (as defined
         in the Agreement) the Placement Agency Agreement (as defined in the
         Agreement) (collectively, the "Transaction Agreements"). Said
         resolutions have not been amended, modified, annulled or revoked, and
         are on the date hereof in full force and effect and are the only
         resolutions relating to these matters which have been adopted by the
         members.]

                  (6) No event with respect to the Issuer has occurred and is
         continuing which would constitute an Event of Default or an event that,
         with notice or the passage of time or both, would become an Event of
         Default as defined in the Agreement. To the best of my knowledge after
         reasonable investigation, there has been no material adverse change

<PAGE>

         in the condition, financial or otherwise, or the earnings, business
         affairs or business prospects of the Issuer, whether or not arising in
         the ordinary course of business since the respective dates as of which
         information is given in the Prospectus and except as set forth
         therein.

                  (7) All federal, state and local taxes of the Issuer due and
         owing as of the date hereof have been paid.

                  (8) All representations and warranties of the Issuer contained
         in the Transaction Agreements or any other related documents, or in any
         document, certificate or financial or other statement delivered in
         connection therewith are true and correct as of the date hereof.

                  (9) There is no action, investigation or proceeding pending
         or, to our knowledge, threatened against the Issuer before any court,
         administrative agency or other tribunal (a) asserting the invalidity of
         the Transaction Agreements; (b) seeking to prevent the consummation of
         any of the transactions contemplated by the Transaction Agreements; or
         (c) which is likely materially and adversely to affect the Issuer's
         performance of its obligations under, or the validity or enforceability
         of, the Transaction Agreements.

                  (10) No consent, approval, authorization or order of, and no
         notice to or filing with, any governmental agency or body or state or
         federal court is required to be obtained by the Issuer for the Issuer's
         consummation of the transactions contemplated by the Transaction
         Agreements, except such as have been obtained or made and such as may
         be required under the blue sky laws of any jurisdiction in connection
         with the issuance and sale of the Notes.

                  (11) The Issuer is not a party to any agreements or
         instruments evidencing or governing indebtedness for money borrowed or
         by which the Issuer or its property is bound (other than the
         Transaction Agreements). Neither the Originator's transfer and
         assignment of the Conveyed Assets to the Issuer, the Issuer's
         concurrent transfer and assignment of the Collateral by the Issuer to
         the Indenture Trustee nor the issuance and sale of the Notes, nor the
         execution and delivery of the Transaction Agreements, nor the
         consummation of any other of the transactions contemplated therein,
         will violate or conflict with any agreement or instrument to which the
         Issuer is a party or by which it is otherwise bound.

                  (12) In connection with the transfer of Contracts and related
         collateral contemplated in the Agreement, (a) the Issuer has not made
         such transfer with actual intent to hinder, delay or defraud any
         creditor of the Issuer, and (b) the Issuer has not received less than a
         reasonably equivalent value in exchange for such transfer, is not on
         the date thereof insolvent (nor will become insolvent as a result
         thereof), is not engaged (or about to engage) in a business or
         transaction for which it has unreasonably small capital, and does not
         intend to incur or believe it will incur debts beyond its ability to
         pay when matured.

<PAGE>

                  (13) Each of the agreements and conditions of the Issuer to be
         performed on or before the Closing Date pursuant to the Transaction
         Agreements have been performed in all material respects.

                                     * * * *

         In Witness Whereof, I have affixed my signature hereto this ___ day of
__________, 2002.

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

<PAGE>

                                    EXHIBIT C

              [FORM OF CLOSING CERTIFICATE OF SERVICER/ORIGINATOR]

                        GREATAMERICA LEASING CORPORATION

                              OFFICER'S CERTIFICATE

         The undersigned certifies that he/she is ____________ of GreatAmerica
Leasing Corporation ("GreatAmerica"), and that as such he/she is duly authorized
to execute and deliver this certificate on behalf of GreatAmerica, as Servicer
and Originator, in connection with the Transfer and Servicing Agreement (the
"Agreement") dated as of March 1, 2002 (the "Effective Date") by and among
GreatAmerica, as Servicer and Originator, GreatAmerica Leasing Receivables
2002-1, L.L.C. ("Issuer"), JPMorgan Chase Bank as Indenture Trustee, (all
capitalized terms used herein without definition having the respective meanings
set forth in the Agreement), and further certifies as follows (it being
understood that these certifications are being relied upon by, among others,
Chapman and Cutler in connection with its delivery of a legal opinion (the
"Opinion") required in connection with the subject transactions addressing,
among other things, enforceability and UCC perfection issues, and by the
Underwriter in connection with its undertakings in connection with the subject
transactions):

                  (1) Attached hereto as Exhibit I is a true and correct copy of
         the Certificate of Incorporation of GreatAmerica, together with all
         amendments thereto as in effect on the date hereof.

                  (2) There has been no other amendment or other document filed
         affecting the Certificate of Incorporation of GreatAmerica since
         ________, 199__, and no such amendment has been authorized by the Board
         of Directors or shareholders of GreatAmerica.

                  (3) Attached hereto as Exhibit II is a Certificate of the
         Secretary of State of the State of Iowa dated __________ ___, 2002
         stating that GreatAmerica is duly incorporated under the laws of the
         State of Iowa and is in good standing.

                  (4) Attached hereto as Exhibit III is a true and correct copy
         of the Bylaws of GreatAmerica which were in full force and effect on
         __________ ___, 2002 and at all times subsequent thereto.

                  (5) Attached hereto as Exhibit IV is a true and correct copy
         of resolutions adopted pursuant to a unanimous written consent of the
         Executive Committee of the Board of Directors of GreatAmerica and
         relating to the authorization, execution, delivery and performance of
         (among other things) the Agreement; the Underwriting Agreement (as
         defined in the Agreement). Said resolutions have not been amended,
         modified, annulled or revoked, and are on the date hereof in full force
         and effect and are the only resolutions relating to these matters which
         have been adopted by the Board of Directors.

<PAGE>

                  (6) No event with respect to GreatAmerica has occurred and is
         continuing which would constitute an Event of Default or Servicer
         Default or an event that, with notice or the passage of time, would
         constitute an Event of Default or Servicer Default as defined in the
         Transfer and Servicing Agreement. To the best of my knowledge after
         reasonable investigation, there has been no material adverse change in
         the condition, financial or otherwise, or the earnings, business
         affairs or business prospects of GreatAmerica, whether or not arising
         in the ordinary course of business, since the respective dates as of
         which information is given in the Prospectus and except as set forth
         therein.

                  (7) All federal, state and local taxes of GreatAmerica due and
         owing as of the date hereof have been paid.

                  (8) All representations and warranties of GreatAmerica
         contained in the Agreement and the Underwriting Agreement
         (collectively, the "Transaction Agreements") or in any document,
         certificate or financial or other statement delivered in connection
         therewith are true and correct as of the date hereof.

                  (9) There is no action, investigation or proceeding pending
         or, to my knowledge, threatened against GreatAmerica before any court,
         administrative agency or other tribunal (a) asserting the invalidity of
         any Transaction Agreement to which GreatAmerica is a party; or (b)
         which is likely materially and adversely to affect GreatAmerica's
         performance of its obligations under, or the validity or enforceability
         of, the Transaction Agreements.

                  (10) No consent, approval, authorization or order of, and no
         notice to or filing with, any governmental agency or body or state or
         federal court is required to be obtained by GreatAmerica for
         GreatAmerica's consummation of the transactions contemplated by the
         Transaction Agreements, except such as have been obtained or made and
         such as may be required under the blue sky laws of any jurisdiction in
         connection with the issuance and sale of the Notes.

                  (11) Neither GreatAmerica's transfer and assignment of the
         Contract Assets to the Issuer, the Issuer's concurrent transfer and
         assignment of the Pledged Assets to the Indenture Trustee, nor the
         issuance and sale of the Notes or the entering into of the Transaction
         Agreements, nor the consummation of any other of the transactions
         contemplated therein, will violate or conflict with any agreement or
         instrument to which GreatAmerica is a party or by which it is otherwise
         bound.

                  (12) In connection with the transfers of Contracts and related
         assets contemplated in the Agreement, (a) GreatAmerica has not made
         such transfer with actual intent to hinder, delay or defraud any
         creditor of GreatAmerica, and (b) GreatAmerica has not received less
         than a reasonably equivalent value in exchange for such transfer, is
         not on the date hereof insolvent (nor will GreatAmerica become
         insolvent as a result thereof), is not engaged (or about to engage) in
         a business or transaction for which it has unreasonably small capital,
         and does not intend to incur or believe it will incur debts beyond its
         ability to pay when matured.

<PAGE>

                  (13) Each of the agreements and conditions of GreatAmerica to
         be performed or satisfied on or before the Closing Date under the
         Transaction Agreements has been performed or satisfied in all material
         respects.

                  (14) GreatAmerica has not executed for filing any UCC
         financing statements listing the Conveyed Assets as collateral other
         than financing statements, except such financing statements that have
         been or will be released or terminated as of the Closing Date, relating
         to the transactions contemplated in the Agreement.

                                   * * * * * *

<PAGE>

         IN WITNESS WHEREOF, I have affixed my signature hereto this ____ day of
__________, 2002.

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

<PAGE>

                                    EXHIBIT D

                                   [RESERVED]

<PAGE>

                                    EXHIBIT E

                                   [Reserved]

<PAGE>

                                    EXHIBIT F

               FORM OF CERTIFICATE REGARDING REPURCHASED CONTRACTS

                        GREATAMERICA LEASING CORPORATION

                   CERTIFICATE REGARDING REPURCHASED CONTRACTS

         The undersigned certifies that he/she is a ______________ of
GreatAmerica Leasing Corporation, an Iowa corporation (the "Servicer"), and that
as such he/she is duly authorized to execute and deliver this certificate on
behalf of the Servicer pursuant to Section 11.02 of the Transfer and Servicing
Agreement (the "Agreement") dated as of March 1, 2002 by and among GreatAmerica
Leasing Receivables 2002-1, L.L.C., as Issuer, the Servicer, GreatAmerica
Leasing Corporation, as Originator and JPMorgan Chase Bank, as Indenture Trustee
(all capitalized terms used herein without definition having the respective
meanings specified in the Agreement), and further certifies that:

          1.   The Contracts on the attached schedule are to be repurchased by
               the Originator on the date hereof, or substituted for by the
               Originator, pursuant to and in accordance with Section 11.01 of
               the Agreement.

          2.   Upon deposit of the Transfer Deposit Amount for such Contracts
               (or the effective conveyance of one or more Substitute Contracts
               therefor), such Contracts may, pursuant to Section 11.02 of the
               Agreement, be assigned by the Issuer to the Originator.

         IN WITNESS WHEREOF, I have affixed hereunto my signature
this _____ day of ___________, ____.

                                   GREATAMERICA LEASING CORPORATION

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

<PAGE>

                                    EXHIBIT G

                                LIST OF CONTRACTS

<PAGE>

                                    EXHIBIT H

                     [FORM OF MONTHLY REPORT TO NOTEHOLDERS]

<PAGE>

                                    EXHIBIT I

                     [FORM OF SUBSEQUENT TRANSFER AGREEMENT]

         SUBSEQUENT TRANSFER AGREEMENT (the "Agreement"), dated as of
[_________], [_____], by and among GreatAmerica Leasing Receivables 2002-1,
L.L.C., a Delaware limited liability company (the "Issuer"), GreatAmerica
Leasing Corporation, an Iowa corporation ("GreatAmerica" or the "Originator"),
and JPMorgan Chase Bank as Indenture Trustee (the "Indenture Trustee") pursuant
to the Transfer and Servicing Agreement referred to below.

                                   WITNESSETH:

         WHEREAS, the Issuer, the Originator and the Indenture Trustee are
parties to the Transfer and Servicing Agreement, dated as of March 1, 2002 (the
"Transfer and Servicing Agreement");

         WHEREAS, pursuant to the Transfer and Servicing Agreement, the
Originator wishes to sell the Substitute Contracts to the Issuer, and the Issuer
wishes to purchase the same, for the purchase price set forth in Section 3
below; and

         WHEREAS, the Originator has timely delivered an Addition Notice related
to such conveyance as required in the Transfer and Servicing Agreement).

         NOW, THEREFORE, the Originator and the Issuer, hereby agree as follows:

         SECTION 1. DEFINED TERMS. Capitalized terms used herein shall have the
meanings ascribed to them in the Transfer and Servicing Agreement unless
otherwise defined herein.

                  "Subsequent Cutoff Date" shall mean, with respect to the
         Substitute Contracts transferred hereby, ___________.

                  "Substitute Contracts" shall mean, for purposes of this
         Agreement, the Substitute Contracts listed in the Subsequent List of
         Contracts attached hereto as Exhibit A.

                  "Subsequent Transfer Date" shall mean, with respect to the
         Substitute Contracts transferred hereby, ___________.

         SECTION 2. SUBSEQUENT LIST OF CONTRACTS. The Subsequent List of
Contracts attached hereto as Exhibit A is an amendment to the initial List of
Contracts attached as Exhibit G to the Transfer and Servicing Agreement, as
contemplated in the definition of List of Contracts set forth therein. The
Subsequent List of Contracts separately identifies (by attached schedule, or
marking or other effective identifying designation) the Substitute Contracts to
be transferred pursuant to this Agreement on the Subsequent Transfer Date, and
also further separately identifies (by attached schedule, or marking or other
effective identifying designation) the related Contract or Contracts with
respect to which a Substitution Event has occurred and which

<PAGE>

Contracts are being deleted from the List of Contracts by virtue of the delivery
of the Subsequent List of Contracts.

         SECTION 3. TRANSFER OF SUBSTITUTE CONTRACTS. Subject to and upon the
terms and conditions set forth in Section 2.04 of the Transfer and Servicing
Agreement and this Agreement, the Originator hereby sells, transfers, assigns,
sets over and otherwise conveys to the Issuer, in consideration of the Issuer's
(x) payment of $_________ as the purchase price therefor, representing the
prepayment proceeds received with respect to the related Substitution Event (if
applicable) or (y) release and redelivery to the Originator of the related
Contract Assets with respect to which a Substitution Event has occurred (if
applicable), all of the Originator's rights, title and interests in:

               (i) the Substitute Contracts identified in the related Addition
          Notice, and all monies received in payment of such Contracts on and
          after the related Subsequent Cutoff Dates, any Prepayment Amounts, any
          payments in respect of a casualty or early termination, and any
          Recoveries received with respect thereto, but excluding any Excluded
          Amounts;

               (ii) the Equipment related to such Contracts, including all
          proceeds from any sale or other disposition of such Equipment (but
          subject to the exclusion and release herein of Excluded Amounts);

               (iii) the Contract Files;

               (iv) all payments made or to be made in the future with respect
          to such Contracts or the Obligor thereunder under any Vendor
          Assignments with the Originator;

               (v) all Insurance Proceeds with respect to each such Contract;
          and

               (vi) all income from and proceeds of the foregoing.

         It is the intention of the Originator and the Issuer that the transfer
contemplated by this Agreement shall constitute a sale of the Substitute
Contracts from the Originator to the Issuer, conveying good title thereto free
and clear of any Liens, and that the Substitute Contracts shall not be part of
the Originator's estate in the event of the filing of a bankruptcy petition by
or against the Originator under any bankruptcy or similar law.

         SECTION 4.  REPRESENTATIONS AND WARRANTIES OF THE ORIGINATOR.

         (a) The Originator hereby represents and warrants to the Issuer that
the representations and warranties of the Originator in Section 3.01 of the
Transfer and Servicing Agreement are true and correct as of the Subsequent
Transfer Date.

         (b) The Originator hereby repeats and remakes with respect to the
Substitute Contracts as of the Subsequent Transfer Date, the representations and
warranties set forth in the Transfer and Servicing Agreement and deemed to be
made with respect to such Substitute Contracts thereunder.

<PAGE>

         (c) The Originator hereby represents and warrants that (i) the Pool
Balance of the Substitute Contracts listed on the Subsequent List of Contracts
and conveyed to the Issuer pursuant to this Agreement is $_______ as of the
Subsequent Cutoff Date, and (ii) the conditions set forth in Section 2.04(b) of
the Transfer and Servicing Agreement have been satisfied as of the Subsequent
Transfer Date.

         SECTION 5. RATIFICATION OF AGREEMENT. As supplemented by this
Agreement, the Transfer and Servicing Agreement is in all respects ratified
and confirmed and, as so supplemented by this Agreement, shall be read,
taken and construed as one and the same instrument.

         SECTION 6. COUNTERPARTS. This Agreement may be executed by facsimile
signatures and in two or more counterparts (and by different parties in
separate counterparts), each of which shall be an original but all of which
together shall constitute one and the same instrument.

         SECTION 7. GOVERNING LAW. This Agreement shall be construed in
accordance with the laws of the State of New York, and the obligations,
rights and remedies of the parties hereunder shall be determined in
accordance with such laws.

                     [remainder of page intentionally blank]

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized as of the date
first written above.

                               GREATAMERICA LEASING RECEIVABLES 2002-1, L.L.C.

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

                               GREATAMERICA LEASING CORPORATION

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

                               JPMORGAN CHASE BANK, NOT IN ITS INDIVIDUAL
                               CAPACITY BUT SOLELY AS INDENTURE TRUSTEE

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

<PAGE>

                                    EXHIBIT J

                              [FORMS OF CONTRACTS]

<PAGE>

                                    EXHIBIT K

            [OFFICER'S CERTIFICATE OF TEXTRON BUSINESS SERVICES INC.]<PAGE>
                               UNISYS CORPORATION

                                       AND

                            HSBC Bank USA, as Trustee

                                    Indenture

                             Dated as of ___________
<PAGE>
Cross-Reference Table*

<TABLE>
<CAPTION>
Trust Indenture                                               Indenture Section
   Act Section
<S>                                                           <C>
310 (a)(1)                                                           6.9
    (a)(2)                                                           6.9
    (a)(3)                                                           N.A.
    (a)(4)                                                           N.A.
    (a)(5)                                                           6.9
    (b)                                                              6.8
    (c)                                                              N.A.
311 (a)                                                              6.13
    (b)                                                              6.13
    (c)                                                              N.A.
312 (a)                                                              4.1, 4.2(a)
    (b)                                                              4.2(b)
    (c)                                                              4.2(c)
313 (a)                                                              4.4(a)
    (b)(1)                                                           4.4(a)
    (b)(2)                                                           4.4(a)
    (c)                                                              4.4(a)
    (d)                                                              4.4(b)
314 (a)(1)                                                           4.3
    (a)(2)                                                           4.3
    (a)(3)                                                           4.3
    (a)(4)                                                           4.5
    (b)                                                              N.A.
    (c)(1)                                                           11.5
    (c)(2)                                                           11.5
    (c)(3)                                                           N.A.
    (d)                                                              N.A.
    (e)                                                              11.5
    (f)                                                              N.A.
315 (a)                                                              6.1
    (b)                                                              5.11
    (c)                                                              6.1
    (d)                                                              6.1
    (e)                                                              5.12
316 (a) (last sentence)                                              7.4
    (a)(1)(A)                                                        5.9
    (a)(1)(B)                                                        5.10
    (a)(2)                                                           N.A.
    (b)                                                              5.7
    (c)                                                              5.10
317 (a)(1)                                                           5.2
    (a)(2)                                                           5.2
    (b)                                                              3.4
318 (a)                                                             11.7
</TABLE>

--------

*  This Cross-Reference Table is not part of the Indenture

<PAGE>
<TABLE>
<S>                                                                           <C>
ARTICLE 1 DEFINITIONS                                                          1

SECTION 1.1. CERTAIN TERMS DEFINED                                             1

ARTICLE 2 SECURITIES                                                           8

SECTION 2.1. FORMS GENERALLY                                                   8

SECTION 2.2. FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION                   8

SECTION 2.3. AMOUNT UNLIMITED; ISSUABLE IN SERIES                              8

SECTION 2.4. AUTHENTICATION AND DELIVERY OF SECURITIES                        11

SECTION 2.5. EXECUTION OF SECURITIES                                          12

SECTION 2.6. CERTIFICATE OF AUTHENTICATION                                    13

SECTION 2.7. DENOMINATION AND DATE OF SECURITIES; PAYMENTS OF INTEREST        13

SECTION 2.8. REGISTRATION, TRANSFER AND EXCHANGE                              13

SECTION 2.9. MUTILATED, DEFACED, DESTROYED, LOST AND STOLEN SECURITIES        19

SECTION 2.10. CANCELLATION OF SECURITIES; DESTRUCTION THEREOF                 20

SECTION 2.11. TEMPORARY SECURITIES                                            20

ARTICLE 3 COVENANTS OF THE ISSUER                                             21

SECTION 3.1. PAYMENT OF PRINCIPAL AND INTEREST                                22

SECTION 3.2. OFFICES FOR PAYMENTS, ETC                                        23

SECTION 3.3. APPOINTMENT TO FILL A VACANCY IN OFFICE OF TRUSTEE               23
</TABLE>
<PAGE>
<TABLE>
<S>                                                                           <C>
SECTION 3.4. PAYING AGENTS                                                    24

SECTION 3.5. WRITTEN STATEMENT TO TRUSTEE                                     24

SECTION 3.6. LIMITATION ON MORTGAGES AND LIENS                                24

SECTION 3.7. LIMITATION ON SALE AND LEASEBACK TRANSACTIONS                    27

ARTICLE 4 SECURITYHOLDERS' LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE    28

SECTION 4.1. ISSUER TO FURNISH TRUSTEE INFORMATION AS TO NAMES AND
             ADDRESSES OF SECURITYHOLDERS                                     28

SECTION 4.2. PRESERVATION AND DISCLOSURE OF SECURITYHOLDERS' LISTS            29

SECTION 4.3. REPORTS BY THE ISSUER                                            30

SECTION 4.4. REPORTS BY THE TRUSTEE                                           30

ARTICLE 5 REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT     31

SECTION 5.1. EVENT OF DEFAULT DEFINED; ACCELERATION OF MATURITY; WAIVER OF
             DEFAULT                                                          31

SECTION 5.2. COLLECTION OF INDEBTEDNESS BY TRUSTEE;                           31

TRUSTEE MAY PROVE DEBT                                                        34

SECTION 5.3. APPLICATION OF PROCEEDS                                          37

SECTION 5.4. SUITS FOR ENFORCEMENT                                            38

SECTION 5.5. RESTORATION OF RIGHTS ON ABANDONMENT OF PROCEEDINGS              38

SECTION 5.6. LIMITATIONS ON SUITS BY SECURITYHOLDERS                          39
</TABLE>

                                       2
<PAGE>
<TABLE>
<S>                                                                           <C>
SECTION 5.7.  UNCONDITIONAL RIGHT OF SECURITYHOLDERS TO INSTITUTE CERTAIN
              SUITS                                                           39

SECTION 5.8.  POWERS AND REMEDIES CUMULATIVE; DELAY OR OMISSION NOT WAIVER
              OF DEFAULT                                                      40

SECTION 5.9.  CONTROL BY HOLDERS OF SECURITIES                                40

SECTION 5.10. WAIVER OF PAST DEFAULTS                                         41

SECTION 5.11. TRUSTEE TO GIVE NOTICE OF DEFAULT                               42

SECTION 5.12. RIGHT OF COURT TO REQUIRE FILING OF UNDERTAKING TO PAY COSTS    42

ARTICLE 6 CONCERNING THE TRUSTEE                                              43

SECTION 6.1.  DUTIES AND RESPONSIBILITIES OF THE TRUSTEE; DURING DEFAULT;
              PRIOR TO DEFAULT                                                43

SECTION 6.2.  CERTAIN RIGHTS OF THE TRUSTEE                                   44

SECTION 6.3.  TRUSTEE NOT RESPONSIBLE FOR RECITALS, DISPOSITION OF
              SECURITIES OR APPLICATION OF PROCEEDS THEREOF                   46

SECTION 6.4.  TRUSTEE AND AGENTS MAY HOLD SECURITIES; COLLECTIONS, ETC        46

SECTION 6.5.  MONEYS HELD BY TRUSTEE                                          47

SECTION 6.6.  COMPENSATION AND INDEMNIFICATION OF
              TRUSTEE AND ITS PRIOR CLAIM                                     47

SECTION 6.7.  RIGHT OF TRUSTEE TO RELY ON OFFICERS' CERTIFICATE, ETC          48

SECTION 6.8.  QUALIFICATION OF TRUSTEE                                        48

SECTION 6.9.  PERSONS ELIGIBLE FOR APPOINTMENT AS TRUSTEE                     48
</TABLE>

                                       3
<PAGE>
<TABLE>
<S>                                                                          <C>
SECTION 6.10. RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR TRUSTEE       49

SECTION 6.11. ACCEPTANCE OF APPOINTMENT BY SUCCESSOR TRUSTEE                  51

SECTION 6.12. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS
              OF TRUSTEE                                                      52

SECTION 6.13. PREFERENTIAL COLLECTION OF CLAIMS AGAINST
              THE ISSUER                                                      53

ARTICLE 7 CONCERNING THE SECURITYHOLDERS                                      53

SECTION 7.1. EVIDENCE OF ACTION TAKEN BY SECURITYHOLDERS                      53

SECTION 7.2. PROOF OF EXECUTION OF INSTRUMENTS AND OF HOLDING OF SECURITIES   53

SECTION 7.3. HOLDERS TO BE TREATED AS OWNERS                                  54

SECTION 7.4. SECURITIES OWNED BY ISSUER DEEMED NOT OUTSTANDING                54

SECTION 7.5. RIGHT OF REVOCATION OF ACTION TAKEN                              55

ARTICLE 8 SUPPLEMENTAL INDENTURES                                             55

SECTION 8.1. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF SECURITYHOLDERS       55

SECTION 8.2. SUPPLEMENTAL INDENTURES WITH CONSENT OF SECURITYHOLDERS          57

SECTION 8.3. EFFECT OF SUPPLEMENTAL INDENTURE                                 59

SECTION 8.4. DOCUMENTS TO BE GIVEN TO TRUSTEE                                 59

SECTION 8.5. NOTATION ON SECURITIES IN RESPECT OF SUPPLEMENTAL INDENTURES     59
</TABLE>

                                       4
<PAGE>
<TABLE>
<S>                                                                           <C>
ARTICLE 9 CONSOLIDATION, MERGER, SALE OR CONVEYANCE                           60

SECTION 9.1. ISSUER MAY CONSOLIDATE, ETC., ON CERTAIN TERMS                   60

SECTION 9.2. SUCCESSOR ISSUER SUBSTITUTED                                     60

SECTION 9.3. OPINION OF COUNSEL TO TRUSTEE                                    61

ARTICLE 10 SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS          61

SECTION 10.1. SATISFACTION AND DISCHARGE OF INDENTURE                         61

SECTION 10.2. APPLICATION OF TRUST MONEY                                      62

SECTION 10.3. DEFEASANCE UPON DEPOSIT OF FUNDS OR GOVERNMENT OBLIGATIONS      62

SECTION 10.4. REPAYMENT OF MONEYS HELD BY PAYING AGENT                        63

SECTION 10.5. RETURN OF MONEYS HELD BY TRUSTEE AND PAYING AGENT UNCLAIMED
              FOR TWO YEARS                                                   64

SECTION 10.6. REINSTATEMENT                                                   65

ARTICLE 11 MISCELLANEOUS PROVISIONS                                           65

SECTION 11.1. INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS OF ISSUER
              EXEMPT FROM INDIVIDUAL LIABILITY                                65

SECTION 11.2. PROVISIONS OF INDENTURE FOR THE SOLE BENEFIT OF PARTIES
              AND HOLDERS OF SECURITIES                                       66

SECTION 11.3. SUCCESSORS AND ASSIGNS OF ISSUER BOUND BY INDENTURE             66
</TABLE>

                                       5
<PAGE>
<TABLE>
<S>                                                                           <C>
SECTION 11.4. NOTICES AND DEMANDS ON ISSUER, TRUSTEE AND HOLDERS OF
              SECURITIES                                                      66

SECTION 11.5. OFFICERS' CERTIFICATES AND OPINIONS OF COUNSEL; STATEMENTS
              TO BE CONTAINED THEREIN                                         66

SECTION 11.6. PAYMENTS DUE ON SATURDAYS, SUNDAYS AND HOLIDAYS                 68

SECTION 11.7. CONFLICT OF ANY PROVISION OF INDENTURE WITH TRUST
              INDENTURE ACT OF 1939                                           68

SECTION 11.8. NEW YORK LAW TO GOVERN                                          68

SECTION 11.9. COUNTERPARTS                                                    68

SECTION 11.10. EFFECT OF HEADINGS                                             68

SECTION 11.11. SECURITIES IN A FOREIGN CURRENCY OR IN ECU                     68

SECTION 11.12. JUDGMENT CURRENCY                                              71

ARTICLE 12 REDEMPTION OF SECURITIES AND SINKING FUNDS                         72

SECTION 12.1. APPLICABILITY OF ARTICLE                                        72

SECTION 12.2. NOTICE OF FULL AND PARTIAL REDEMPTION; PARTIAL REDEMPTIONS      73

SECTION 12.3. PAYMENT OF SECURITIES CALLED FOR REDEMPTION                     73

SECTION 12.4. EXCLUSION OF CERTAIN SECURITIES FROM ELIGIBILITY FOR
              SELECTION FOR REDEMPTION                                        74

SECTION 12.5. MANDATORY AND OPTIONAL SINKING FUNDS                            75
</TABLE>

                                       6
<PAGE>
      THIS INDENTURE, dated as of ____________ between UNISYS CORPORATION, a
Delaware corporation (the "Issuer"), and HSBC Bank USA, not in its individual
capacity, but solely as Trustee (the "Trustee").

                              W I T N E S S E T H:

      WHEREAS, the Issuer has duly authorized the issue from time to time of its
unsecured and unsubordinated debentures, notes or other evidences of
indebtedness to be issued in one or more series (the "Securities") up to such
principal amount or amounts as may from time to time be authorized in accordance
with the terms of this Indenture and, to provide, among other things, for the
authentication, delivery and administration thereof, the Issuer has duly
authorized the execution and delivery of this Indenture; and

      WHEREAS, all things necessary to make this Indenture a valid indenture and
agreement according to its terms have been done.

      NOW, THEREFORE:

      In consideration of the premises and the purchases of the Securities by
the holders thereof, the Issuer and the Trustee mutually covenant and agree for
the equal and proportionate benefit of the respective holders from time to time
of the Securities as follows:

                                    ARTICLE 1

                                   DEFINITIONS

      SECTION 1.1. Certain Terms Defined. The following terms (except as
otherwise expressly provided or unless the context otherwise clearly requires)
for all purposes of this Indenture and of any indenture supplemental hereto
shall have the respective meanings specified in this Section. All other terms
used in this Indenture that are defined in the Trust Indenture Act of 1939 or
the definitions of which in the Securities Act of 1933 are referred to in the
Trust Indenture Act of 1939, including terms defined therein by reference to the
Securities Act of 1933 (except as herein otherwise expressly provided or unless
the context otherwise clearly requires), shall have the meanings assigned to
such terms in said Trust Indenture Act and in said Securities Act as in force at
the date of this Indenture. All accounting terms used herein and not expressly
defined shall have the meanings
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assigned to such terms in accordance with generally accepted accounting
principles, and the term "generally accepted accounting principles" means such
accounting principles as are generally accepted at the time of any computation.
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. The terms defined in this Article have the meanings assigned
to them in this Article and include the plural as well as the singular.

      "Affiliated Corporation" means any corporation which is controlled by the
Issuer but which is not a Subsidiary of the Issuer pursuant to the definition of
the term "Subsidiary."

      "Attributable Debt" means, as to any particular Sale and Leaseback
Transaction, at any date as of which the amount thereof is to be determined, the
total amount determined by multiplying (i) the aggregate sale price of the Real
Property subject to such arrangement by (ii) a fraction, the numerator of which
is the number of months in the unexpired term of the lease of such Real Property
and the denominator of which is the number of months in the full term of such
lease (in each case, excluding any renewal term unless the renewal is at the
option of the lessor).

      "Board of Directors" means either the Board of Directors of the Issuer or
any committee of such Board duly authorized to act on its behalf.

      "Board Resolution" means a copy of one or more resolutions, certified by
the secretary or an assistant secretary of the Issuer to have been duly adopted
by the Board of Directors and to be in full force and effect, and delivered to
the Trustee.

      "Business Day" means, with respect to any Security, a day that is not a
day on which banking institutions are authorized or required by law or
regulation to be closed (a) in the City of New York or (b) if the currency in
which the Security is denominated is other than Dollars, the financial center of
the country issuing the currency in which the Security is denominated (which, in
the case of ECU, shall be Brussels, Belgium).

      "Code" means the Internal Revenue Code of 1986, as amended from time to
time.

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<PAGE>
      "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 and delivery 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 on such date.

      "Consolidated Stockholders' Equity" means, with respect to any Person as
of any date, all amounts that would be reflected in stockholders' equity on a
consolidated balance sheet of such Person determined in accordance with
generally accepted accounting principles in the United States, excluding any
direct equity adjustments to such consolidated stockholders' equity effected
pursuant to Statement of Financial Accounting Standards No. 52 - "Foreign
Currency Translation", Statement of Financial Accounting Standards No. 133 -
"Accounting for Derivative Instruments and Hedging Activities", Statement of
Financial Accounting Standards No. 87 - "Employers' Accounting for Pensions",
Statement of Financial Accounting Standards No. 115 - "Accounting for Certain
Investments in Debt and Equity Securities" and/or similar non-cash direct equity
adjustments required by changes to generally accepted accounting principles from
those in effect on the date of this Indenture.

      "Corporate Trust Office" means the office of the Trustee at which the
corporate trust business of the Trustee shall, at any particular time, be
principally administered, which office of HSBC Bank USA at the date of the
execution of this Indenture is located at 452 Fifth Avenue, New York, New York
10018.

      "Depositary" means, with respect to the Securities of any series issuable
or issued in the form of one or more Global Securities, the Person designated as
Depositary by the Issuer pursuant to Section 2.3 until a successor Depositary
shall have become such pursuant to the applicable provisions of this Indenture,
and thereafter "Depositary" shall mean or include each Person who is then a
Depositary hereunder, and if at any time there is more than one such Person,
"Depositary" as used with respect to the Securities of any such series shall
mean the Depositary with respect to the Global Securities of that series.

                                       3
<PAGE>
      "Dollar" means the coin or currency of the United States of America as at
the time of payment is legal tender for the payment of public and private debts.

      "ECU" means the European Currency Unit as defined and revised from time to
time by the Council of European Communities.

      "European Communities" shall have the meaning set forth in Section
11.11(b)

      "Event of Default" shall have the meaning set forth in Section 5.1.

      "Foreign Currency" means a currency issued by the government of a country
other than the United States.

      "Funded Debt" means any indebtedness for money borrowed, created, issued,
incurred, assumed or guaranteed which would, in accordance with generally
accepted accounting practice, be classified as long-term debt, but in any event
including all indebtedness for money borrowed, whether secured or unsecured,
maturing more than one year, or extendible at the option of the obligor to a
date more than one year, after the date of determination thereof (excluding any
amount thereof included in current liabilities).

      "Global Security" means a Security evidencing all or a part of a series of
Securities, issued to the Depositary for such series in accordance with Section
2.4, and bearing the legend prescribed in Section 2.4.

      "Holder", "holder of Securities", "Securityholder" or other similar terms
mean the person in whose name such Security is registered in the security
register kept by or on behalf of the Issuer for that purpose in accordance with
the terms hereof.

      "Indenture" means this instrument as originally executed and delivered or,
if amended or supplemented as herein provided, as so amended or supplemented or
both, and shall include the forms and terms of particular series of Securities
established as contemplated hereunder.

                                       4
<PAGE>
      "Interest" means, when used with respect to non-interest bearing
Securities, interest payable after maturity.

      "Issuer" means (except as otherwise provided in Article Six) Unisys
Corporation and, subject to Article Nine, its successors and assigns.

      "Issuer Order" means a written statement, request or order of the Issuer
signed in its name by the chairman of the Board of Directors, any vice chairman
of the Board of Directors, the chief executive officer, the president, any vice
president or the treasurer of the Issuer.

      "Officers' Certificate" means a certificate signed by two officers of the
Issuer, one of whom must be the chief financial officer of the Issuer, and
delivered to the Trustee. Each such certificate shall include the statements
provided for in Section 11.5.

      "Opinion of Counsel" means an opinion in writing signed by the general
corporate counsel or such other legal counsel who may be an employee of or
counsel to the Issuer. Each such opinion shall include the statements provided
for in Section 11.5, if and to the extent required thereby.

      "Original Issue Date" of any Security (or portion thereof) means the
earlier of (a) the date of such Security or (b) the date of any Security (or
portion thereof) for which such Security was issued (directly or indirectly) on
registration of transfer, exchange or substitution.

      "Original Issue Discount Security" means any Security that provides for an
amount less than the principal amount thereof to be due and payable upon a
declaration of acceleration of the maturity thereof pursuant to Section 5.1.

      "Outstanding" (except as otherwise provided in Section 6.8), when used
with reference to Securities, shall, subject to the provisions of Section 7.4,
mean, as of any particular time, all Securities authenticated and delivered by
the Trustee under this Indenture, except

      (a) Securities theretofore canceled by the Trustee or delivered to the
   Trustee for cancellation;

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<PAGE>
      (b) Securities, or portions thereof, for the payment or redemption of
   which moneys or government obligations (as provided for in Section 10.3) in
   the necessary amount shall have been deposited in trust with the Trustee or
   with any paying agent (other than the Issuer) or shall have been set aside,
   segregated and held in trust by the Issuer for the holders of such Securities
   (if the Issuer shall act as its own paying agent), provided that if such
   Securities, or portions thereof, are to be redeemed prior to the maturity
   thereof, notice of such redemption shall have been given as herein provided,
   or provision satisfactory to the Trustee shall have been made for giving such
   notice; and

      (c) Securities in substitution for which other Securities shall have been
   authenticated and delivered, or which shall have been paid, pursuant to the
   terms of Section 2.9 (except with respect to any such Security as to which
   proof satisfactory to the Trustee and the Issuer is presented that such
   Security is held by a person in whose hands such Security is a legal, valid
   and binding obligation of the Issuer).

            In determining whether the Holders of the requisite principal amount
of Outstanding Securities of any or all series have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, the principal
amount of an Original Issue Discount Security that shall be deemed to be
Outstanding for such purposes shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon a declaration
of acceleration of the maturity thereof pursuant to Section 5.1.

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

            "principal", whenever used with reference to the Securities or any
Security or any portion thereof, shall be deemed to include "and premium, if
any".

            "Real Property" means any real property, and any building, structure
or other facility thereon, located within the United States (other than its
territories or possessions) owned by the Issuer or any Subsidiary the

                                       6
<PAGE>
gross book value (without deduction of any depreciation reserves) of which on
the date as of which the determination is being made exceeds 1% of Consolidated
Stockholders' Equity, other than any such real property, building, structure or
other facility or portion thereon, that, in the opinion of the Board of
Directors, is not of material importance to the business conducted by the Issuer
and its Subsidiaries, taken as a whole.

            "Responsible Officer" when used with respect to the Trustee means
any officer within the Corporate Trust Department (or any successor group of the
Trustee) with direct responsibility for the administration of this Indenture and
also, with respect to a particular matter, any other officer to whom such matter
is referred because of such officer's knowledge and familiarity with the
particular subject.

            "Sale and Leaseback Transaction" has the meaning specified in
Section 3.7.

            "Security" or "Securities" (except as otherwise provided in Section
6.8) has the meaning stated in the first recital of this Indenture, or, as the
case may be, Securities that have been authenticated and delivered under this
Indenture.

            "Subsidiary" means any corporation of which at least a majority of
the outstanding stock having by the terms thereof ordinary voting power to elect
a majority of the 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, is at
the time, directly or indirectly, owned or controlled by the Issuer or by one or
more Subsidiaries thereof, or by the Issuer and one or more Subsidiaries,
provided, however, that such term shall not include any corporation controlled
by the Issuer (herein referred to as an "Affiliated Corporation") which:

            (i) does not transact any substantial portion of its business or
regularly maintain any substantial portion of its operating assets within the
continental limits of the United States;

            (ii) is principally engaged in the business of financing (including,
without limitation, the purchase, holding, sale or discounting of or lending
upon any accounts receivable, notes, contracts, leases or other forms

                                       7
<PAGE>
of obligations) the sale or lease of merchandise, equipment or services (a) by
the Issuer, (b) by a Subsidiary (whether such sales or leases have been made
before or after the date when such corporation became a Subsidiary), (c) by
another Affiliated Corporation or (d) by any corporation prior to the time when
substantially all its assets have heretofore been or shall hereafter have been
acquired by the Issuer;

            (iii) is principally engaged in the business of owning, leasing,
dealing in or developing real property; or

            (iv) is principally engaged in the holding of stock in, and/or the
financing of operations of, an Affiliated Corporation.

            "Trustee" means the Person identified as "Trustee" in the first
paragraph hereof and, subject to the provisions of Article Six, shall also
include any successor trustee.

            "Trust Indenture Act of 1939" means the Trust Indenture Act of 1939,
as amended, as in force at the date as of which this Indenture was originally
executed; provided, however, that if the Trust Indenture Act of 1939 is amended,
then Trust Indenture Act of 1939 shall mean the Trust Indenture Act of 1939 as
so amended.

            "vice president", when used with respect to the Issuer or the
Trustee, means any vice president, whether or not designated by a number or a
word or words added before or after the title of "vice president".

            "Wholly Owned Subsidiary" means a Subsidiary of which all of the
outstanding voting stock (other than directors' qualifying shares) is at the
time, directly or indirectly, owned by the Issuer and/or by one or more Wholly
Owned Subsidiaries.

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

                                       8
<PAGE>
                                    ARTICLE 2

                                   SECURITIES

            SECTION 2.1. Forms Generally. The Securities of each series shall be
substantially in such form (not inconsistent with this Indenture) as shall be
established by or pursuant to one or more Board Resolutions (as set forth in a
Board Resolution or, to the extent established pursuant to rather than set forth
in such Board Resolution, an Officers' Certificate detailing such establishment)
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 imprinted or otherwise
reproduced thereon such legend or legends or endorsements, not inconsistent with
the provisions of this Indenture, as may be required to comply with any law or
with any rules or regulations pursuant thereto, or with any rules of any
securities exchange or to conform to general usage, all as may be determined by
the officers executing such Securities as evidenced by their execution of the
Securities.

            The definitive Securities may be printed, lithographed or engraved
on steel engraved borders 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 on all Securities shall be in
substantially the following form:

            This is one of the Securities of the series designated herein and
referred to in the within-mentioned Indenture.

                                  HSBC Bank USA
                                  as Trustee

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

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            SECTION 2.3. Amount Unlimited; Issuable in Series. The aggregate
principal amount of Securities that may be authenticated and delivered under
this Indenture is unlimited.

            The Securities may be issued in one or more series. There shall be
established in or pursuant to one or more Board Resolutions of the Board of
Directors and set forth in a Board Resolution, or to the extent established
pursuant to (rather than set forth in) such Board Resolution in an Officers'
Certificate detailing such establishment, and/or established in one or more
indentures supplemental hereto, prior to the initial issuance of Securities of
any series,

            (1) the designation of the Securities of the series (which may be
      part of a series of Securities previously issued);

            (2) any limit upon the aggregate principal amount of the Securities
      of the series that may be authenticated and delivered under this Indenture
      (except for Securities authenticated and delivered upon registration and
      transfer of, or in exchange for, or in lieu of, other Securities of the
      series pursuant to Section 2.8, 2.9, 2.11 or 12.3);

            (3) any date on which the principal of, and premium, if any, on the
      Securities of the series is payable;

            (4) the rate or rates at which the Securities of the series shall
      bear interest, if any, the date or dates from which such interest shall
      accrue, on which such interest shall be payable and on which a record
      shall be taken for the determination of Holders to whom interest is
      payable and/or the method by which such rate or rates or date or dates
      shall be determined and the basis on which interest shall be calculated if
      other than a 360-day year consisting of twelve 30-day months;

            (5) the place or places where the principal of, and premium, if any,
      or any interest on Securities of the series shall be payable (if other
      than as provided in Section 3.2);

            (6) the price or prices at which, the period or periods within which
      and the terms and conditions upon which Securities of the series

                                       10
<PAGE>
      may be redeemed, in whole or in part, at the option of the Issuer,
      pursuant to any sinking fund or otherwise;

            (7) the obligation, if any, of the Issuer to redeem, purchase or
      repay Securities of the series pursuant to any mandatory redemption,
      sinking fund or analogous provisions or at the option of a Holder thereof
      and the price or prices at which and the period or periods within which
      and any terms and conditions upon which Securities of the series shall be
      redeemed, purchased or repaid, in whole or in part, pursuant to such
      obligation;

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

            (9) if other than the principal amount thereof, the portion of the
      principal amount of Securities of the series which shall be payable upon
      declaration of acceleration of the maturity thereof;

            (10) the currency or currencies or currency unit or currency units
      in which the Securities of that series are denominated (including but not
      limited to Dollars, any Foreign Currency or ECU) and the aggregate
      principal amount of the series which may be authenticated and delivered
      under this Indenture (except for Securities authenticated and delivered
      upon registration and transfer of, or in exchange for, or in lieu of,
      other Securities of such series pursuant to this Indenture);

            (11) if other than the currency or currencies or currency unit or
      currency units in which the Securities of that series are denominated, the
      currency or currencies or currency unit or currency units in which payment
      of the principal of, premium, if any, or interest on the Securities of
      such series shall or may be payable;

            (12) if the principal of, premium, if any, or interest on the
      Securities of such series are to be payable, at the election of the Issuer
      or a holder thereof, in a currency or currencies or currency unit or
      currency units other than that in which the Securities are denominated,
      the period or periods within which, and the terms and conditions upon
      which, such election may be made;

                                       11
<PAGE>
            (13) if the amount of payments of principal of, premium, if any, and
      interest on the Securities of the series may be determined with reference
      to an index based on a currency or currencies or currency unit or currency
      units other than that in which the Securities of the series are
      denominated, the manner in which such amount shall be determined;

            (14) whether the Securities of the series are to be convertible or
      exchangeable for other securities of the Issuer or any other Person and
      the terms and conditions thereof;

            (15) whether any of the Securities of the series will be issuable as
      Global Securities;

            (16) any trustees, depositaries, authenticating or paying agents,
      transfer agents or registrars or any other agents with respect to the
      Securities of such series; and

            (17) any other terms of the series (which terms shall not be
      inconsistent with the provisions of this Indenture).

            SECTION 2.4. Authentication and Delivery of Securities. The Issuer
may deliver Securities of any series executed by the Issuer to the Trustee for
authentication together with the applicable documents referred to below in this
Section, and the Trustee shall thereupon authenticate and deliver such
Securities to or upon the order of the Issuer (contained in the Issuer Order
referred to below in this Section), or pursuant to such procedures acceptable to
the Trustee and to such recipients as may be specified from time to time by an
Issuer Order. The maturity date, Original Issue Date, interest rate and any
other terms of the Securities of such series shall be determined by or pursuant
to such Issuer Order and procedures. 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 6.1) shall be fully protected in conclusively relying upon:

            (1) an Issuer Order requesting such authentication and setting forth
      delivery instructions if the Securities are not to be delivered to the
      Issuer;

                                       12
<PAGE>
            (2) any Board Resolution, Officers' Certificate and/or executed
      supplemental indenture referred to in Sections 2.1 and 2.3 by or pursuant
      to which the forms and terms of the Securities were established;

            (3) an Officers' Certificate setting forth the form and terms of the
      Securities stating that the form and terms of the Securities have been
      established pursuant to Sections 2.1 and 2.3 and comply with this
      Indenture, and covering such other matters as the Trustee may reasonably
      request; and

            (4) an Opinion of Counsel to the effect that:

                  (a) the form or forms and terms of such Securities have been
            established pursuant to Sections 2.1 and 2.3 and comply with this
            Indenture, and

                  (b) such Securities when authenticated and delivered by the
            Trustee and issued by the Issuer in the manner and subject to any
            conditions specified in such Opinion of Counsel, will constitute
            valid and legally binding obligations of the Issuer, enforceable in
            accordance with their terms, subject to bankruptcy, insolvency,
            fraudulent conveyance, reorganization, moratorium and other similar
            laws relating to or affecting creditors' rights generally, general
            equitable principles (whether considered in a proceeding in equity
            or at law) and an implied covenant of good faith and fair dealing.

            The Trustee shall have the right to decline to authenticate and
deliver any Securities under this Section if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken by the Issuer or
if the Trustee in good faith by its board of directors or board of trustees,
executive committee, or a trust committee of directors or trustees or
Responsible Officers shall determine that such action would expose the Trustee
to personal liability to existing Holders.

            If the Issuer shall establish pursuant to Section 2.3 that the
Securities of a series are to be issued in the form of one or more Global
Securities, then the Issuer shall execute and the Trustee shall, in accordance
with this Section and the Issuer Order with respect to such series,

                                       13
<PAGE>
authenticate and deliver one or more Global Securities that (i) shall represent
and shall be denominated in an amount equal to the aggregate principal amount of
all of the Securities of such series issued and not yet canceled, (ii) shall be
registered in the name of the Depositary for such Global Security or Securities
or the nominee of such Depositary, (iii) shall be delivered by the Trustee to
such Depositary or pursuant to such Depositary's instructions and (iv) shall
bear a legend substantially to the following effect: "Unless and until it is
exchanged in whole or in part for Securities in definitive registered form, this
Security may not be transferred except as a whole by the Depositary to the
nominee of the Depositary or by a nominee of the Depositary to the Depositary or
another nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary."

            Each Depositary designated pursuant to Section 2.3 must, at the time
of its designation and at all times while it serves as Depositary, be a clearing
agency registered under the Securities Exchange Act of 1934 and any other
applicable statute or regulation.

            SECTION 2.5. Execution of Securities. The Securities shall be signed
on behalf of the Issuer by the chairman of its Board of Directors, any vice
chairman of its Board of Directors, its chief executive officer, its president,
any vice president or its treasurer. Such signature may be the manual or
facsimile signature of the present or any future such officers. The seal of the
Issuer may be (but need not be) impressed, affixed, imprinted or otherwise
reproduced on the Securities and may be a facsimile thereof. Typographical and
other minor errors or defects in any such reproduction of the seal or any such
signature shall not affect the validity or enforceability of any Security that
has been duly authenticated and delivered by the Trustee.

            In case any officer of the Issuer who shall have signed any of the
Securities shall cease to be such officer before the Security so signed shall be
authenticated and delivered by the Trustee or disposed of by the Issuer, such
Security nevertheless may be authenticated and delivered or disposed of as
though the person who signed such Security had not ceased to be such officer of
the Issuer; and any Security may be signed on behalf of the Issuer by such
persons as, at the actual date of the execution of such Security, shall be the
proper officers of the Issuer, although at the date of the execution and
delivery of this Indenture any such person was not such an officer.

                                       14
<PAGE>
            SECTION 2.6. Certificate of Authentication. Only such Securities as
shall bear thereon a certificate of authentication substantially in the form
hereinbefore recited, executed by the Trustee by the manual signature of one of
its authorized officers, shall be entitled to the benefits of this Indenture or
be valid or obligatory for any purpose. Such certificate by the Trustee upon any
Security executed by the Issuer shall be conclusive evidence that the Security
so authenticated has been duly authenticated and delivered hereunder and that
the holder is entitled to the benefits of this Indenture.

            SECTION 2.7. Denomination and Date of Securities; Payments of
Interest. The Securities of each series shall be issuable as registered
securities without coupons and in denominations established as contemplated by
Section 2.3 or, if not so established, in denominations of $1,000 and any
multiple thereof. The Securities of each series shall be numbered, lettered or
otherwise distinguished in such manner or in accordance with such plan as the
officers of the Issuer executing the same may determine with the approval of the
Trustee as evidenced by the execution and authentication thereof.

            Each Security shall be dated the date of its authentication. The
Securities of each series shall bear interest, if any, from the date, and such
interest shall be payable on the dates, established as contemplated by Section
2.3.

            The person in whose name any Security of any series is registered at
the close of business on any record date applicable to a particular series with
respect to any interest payment date for such series shall be entitled to
receive the interest, if any, payable on such interest payment date
notwithstanding any registration of transfer or exchange of such Security
subsequent to the record date and prior to such interest payment date, except if
and to the extent the Issuer shall default in the payment of the interest due on
such interest payment date for such series, in which case such defaulted
interest shall be paid to the persons in whose names Outstanding Securities for
such series are registered at the close of business on a subsequent record date
(which shall be not less than five Business Days prior to the date of payment of
such defaulted interest) established by notice given by mail by or on behalf of
the Issuer to the holders of Securities not less than 15 days preceding such
subsequent record date. The term "record date" as used with respect to any
interest payment date

                                       15
<PAGE>
(except a date for payment of defaulted interest) for the Securities of any
series shall mean the date specified as such in the terms of the Securities of
such series established as contemplated by Section 2.3.

            SECTION 2.8. Registration, Transfer and Exchange. The Issuer will
keep or cause to be kept at each office or agency to be maintained for the
purpose as provided in Section 3.2 for each series of Securities a register or
registers in which, subject to such reasonable regulations as it may prescribe,
it will provide for the registration of Securities of such series and the
registration of transfer of Securities of such series. Such register shall be in
written form in the English language or in any other form capable of being
converted into such form within a reasonable time. At all reasonable times
during normal business hours such register or registers shall be open for
inspection by the Trustee.

            Upon due presentation for registration of transfer of any Security
of any series at any such office or agency to be maintained for the purpose as
provided in Section 3.2, the Issuer shall execute and the Trustee shall
authenticate and deliver in the name of the transferee or transferees a new
Security or Securities of the same series, maturity date, interest rate and
Original Issue Date in authorized denominations for a like aggregate principal
amount.

            At the option of the Holder thereof, Securities of any series
(except a Global Security) may be exchanged for a Security or Securities of such
series, maturity date, interest rate and Original Issue Date of other authorized
denominations and of a like aggregate principal amount, upon surrender of such
Securities to be exchanged at the agency of the Issuer which shall be maintained
for such purpose in accordance with Section 3.2 and upon payment, if the Issuer
shall so require, of the charges hereinafter provided. Whenever any Securities
are so surrendered for exchange, the Issuer shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange is
entitled to receive. All Securities surrendered upon any exchange or
registration of transfer provided for in this Indenture shall be promptly
canceled and destroyed by the Trustee in accordance with its normal procedures.

            All Securities presented for registration of transfer, exchange,
redemption or payment shall (if so required by the Issuer or the Trustee) be
duly endorsed by, or be accompanied by a written instrument or instruments

                                       16
<PAGE>
of transfer in form satisfactory to the Issuer and the Trustee duly executed by,
the holder or his attorney duly authorized in writing.

            The Issuer or the Trustee may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
with any exchange or registration of transfer of Securities. No service charge
shall be made for any such transaction.

            The Issuer shall not be required to exchange or register a transfer
of (a) any Securities of any series for a period of 15 days next preceding the
first mailing of notice of redemption of Securities of such series to be
redeemed or (b) any Securities selected, called or being called for redemption,
in whole or in part, except, in the case of any Security to be redeemed in part,
the portion thereof not so to be redeemed.

            Notwithstanding any other provision of this Section 2.8, unless and
until it is exchanged in whole or in part for Securities in definitive
registered form, a Global Security representing all or a portion of the
Securities of a series may not be transferred except as a whole by the
Depositary for such series to a nominee of such Depositary or by a nominee of
such Depositary to such Depositary or any such nominee to a successor Depositary
for such series or a nominee of such successor Depositary.

            If at any time the Depositary for any Securities of a series
represented by one or more Global Securities notifies the Issuer that it is
unwilling or unable to continue as Depositary for such Securities or if at any
time the Depositary for such Securities shall no longer be eligible under
Section 2.4, the Issuer shall appoint a successor Depositary with respect to
such Securities. If a successor Depositary for such Securities is not appointed
by the Issuer within 90 days after the Issuer receives such notice or becomes
aware of such ineligibility, the Issuer's election pursuant to Section 2.3 that
such Securities be represented by one or more Global Securities shall no longer
be effective and the Issuer will execute, and the Trustee, upon receipt of an
Issuer Order for the authentication and delivery of definitive Securities of
such series, will authenticate and deliver, Securities of such series in
definitive registered form without coupons, in any authorized denominations, in
an aggregate principal amount equal to the principal amount of the Global
Security or Securities representing such Securities in exchange for such Global
Security or Securities.

                                       17
<PAGE>
            The Issuer may at any time and in its sole discretion determine that
the Securities of any series issued in the form of one or more Global Securities
shall no longer be represented by a Global Security or Securities. In such event
the Issuer will execute, and the Trustee, upon receipt of an Issuer Order for
the authentication and delivery of definitive Securities of such series, will
authenticate and deliver, Securities of such series in definitive registered
form, in any authorized denominations, in an aggregate principal amount equal to
the principal amount of the Global Security or Securities representing such
Securities, in exchange for such Global Security or Securities.

            If specified by the Issuer pursuant to Section 2.3 with respect to
Securities represented by a Global Security, the Depositary for such Global
Security may surrender such Global Security in exchange in whole or in part for
Securities of the same series in definitive registered form on such terms as are
acceptable to the Issuer and such Depositary. Thereupon, the Issuer shall
execute, and the Trustee shall authenticate and deliver, without service charge,

            (i) to the Person specified by such Depositary a new Security or
      Securities of the same series, of any authorized denominations as
      requested by such Person, in an aggregate principal amount equal to and in
      exchange for such Person's beneficial interest in the Global Security; and

            (ii) to such Depositary a new Global Security in a denomination
      equal to the difference, if any, between the principal amount of the
      surrendered Global Security and the aggregate principal amount of
      Securities authenticated and delivered pursuant to clause (i) above.

            Upon the exchange of a Global Security for Securities in definitive
registered form, in authorized denominations, such Global Security shall be
canceled by the Trustee. Securities in definitive registered form issued in
exchange for a Global Security pursuant to this Section 2.8 shall be registered
in such names and in such authorized denominations as the Depositary for such
Global Security, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee in writing. The Trustee
shall deliver such Securities to or as directed by the Persons in whose names
such Securities are so registered.

                                       18
<PAGE>
            All Securities issued upon any registration of transfer or exchange
of Securities shall be valid obligations of the Issuer, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Securities
surrendered upon such registration of transfer or exchange.

            SECTION 2.9. Mutilated, Defaced, Destroyed, Lost and Stolen
Securities. In case any temporary or definitive Security shall become mutilated,
defaced or be destroyed, lost or stolen, the Issuer in its discretion may
execute, and upon the written request of any officer of the Issuer, the Trustee
shall authenticate and deliver, a new Security of the same series, maturity
date, interest rate and Original Issue Date, bearing a number or other
distinguishing symbol not contemporaneously outstanding, in exchange and
substitution for the mutilated or defaced Security, or in lieu of and
substitution for the Security so destroyed, lost or stolen. In every case the
applicant for a substitute Security shall furnish to the Issuer and to the
Trustee and any agent of the Issuer or the Trustee such security or indemnity as
may be required by them to indemnify and defend and to save each of them
harmless and, in every case of destruction, loss or theft, evidence to their
satisfaction of the destruction, loss or theft of such Security and of the
ownership thereof.

      Upon the issuance of any substitute Security, the Issuer 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. In case any Security which has
matured or is about to mature or has been called for redemption in full shall
become mutilated or defaced or be destroyed, lost or stolen, the Issuer may
instead of issuing a substitute Security, pay or authorize the payment of the
same (without surrender thereof except in the case of a mutilated or defaced
Security), if the applicant for such payment shall furnish to the Issuer and to
the Trustee and any agent of the Issuer or the Trustee such security or
indemnity as any of them may require to save each of them harmless, and, in
every case of destruction, loss or theft, the applicant shall also furnish to
the Issuer and the Trustee and any agent of the Issuer or the Trustee evidence
to their satisfaction of the destruction, loss or theft of such Security and of
the ownership thereof.

            Every substitute Security of any series issued pursuant to the
provisions of this Section by virtue of the fact that any such Security is

                                       19
<PAGE>
destroyed, lost or stolen shall constitute an additional contractual obligation
of the Issuer, 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 (but
shall be subject to all the limitations of rights set forth in) this Indenture
equally and proportionately with any and all other Securities of such series
duly authenticated and delivered hereunder. All Securities shall be held and
owned upon the express condition that, to the extent permitted by law, the
foregoing provisions are exclusive with respect to the replacement or payment of
mutilated, defaced or destroyed, lost or stolen Securities and shall preclude
any and all other rights or remedies notwithstanding any law or statute existing
or hereafter enacted to the contrary with respect to the replacement or payment
of negotiable instruments or other securities without their surrender.

            SECTION 2.10. Cancellation of Securities; Destruction Thereof. All
Securities surrendered for payment, redemption, registration of transfer or
exchange, or for credit against any payment in respect of a sinking or analogous
fund, if surrendered to the Issuer or any agent of the Issuer or the Trustee,
shall be delivered to the Trustee for cancellation or, if surrendered to the
Trustee, shall be canceled by it; and no Securities shall be issued in lieu
thereof except as expressly permitted by any of the provisions of this
Indenture. The Trustee shall destroy canceled Securities held by it in
accordance with its normal procedures. If the Issuer shall acquire any of the
Securities, such acquisition shall not operate as a redemption or satisfaction
of the indebtedness represented by such Securities unless and until the same are
delivered to the Trustee for cancellation.

            SECTION 2.11. Temporary Securities. Pending the preparation of
definitive Securities for any series, the Issuer may execute and the Trustee
shall authenticate and deliver temporary Securities for such series (printed,
lithographed, typewritten or otherwise reproduced, in each case in form
satisfactory to the Trustee). Temporary Securities of any series shall be
issuable as Securities, of any authorized denomination, and substantially in the
form of the definitive Securities of such series but with such omissions,
insertions and variations as may be appropriate for temporary Securities of such
series, all as may be determined by the Issuer as evidenced by the execution and
authentication thereof. Temporary Securities may contain such reference to any
provisions of this Indenture as may be appropriate. Every temporary Security
shall be executed by the Issuer and be authenticated by the Trustee upon the
same conditions and in

                                       20
<PAGE>
substantially the same manner, and with like effect, as the definitive
Securities. Without unreasonable delay the Issuer shall execute and shall
furnish definitive Securities of such series and thereupon temporary Securities
of such series may be surrendered in exchange therefor without charge at each
office or agency to be maintained by the Issuer for that purpose pursuant to
Section 3.2, and the Trustee shall authenticate and deliver in exchange for such
temporary Securities of such series a like aggregate principal amount of
definitive Securities of the same series of authorized denominations. Until so
exchanged, the temporary Securities of any series shall be entitled to the same
benefits under this Indenture as definitive Securities of such series, unless
otherwise established pursuant to Section 2.3.

                                    ARTICLE 3

                             COVENANTS OF THE ISSUER

            SECTION 3.1. Payment of Principal and Interest. The Issuer covenants
and agrees for the benefit of each series of Securities that it will duly and
punctually pay or cause to be paid the principal of, and interest on, each of
the Securities of such series (together with any additional amounts payable
pursuant to the terms of such Securities) at the place or places, at the
respective times and in the manner provided in such Securities and in this
Indenture. The interest on Securities (together with any additional amounts
payable pursuant to the terms of such Securities) shall be payable only to or
upon the written order of the Holders thereof and at the option of the Issuer
may be paid (i) by mailing checks to or upon the written order of such Holders
at their last addresses as they appear on the registry books of the Issuer or
(ii) by wire transfer to bank accounts maintained by such Holders.

            Notwithstanding any provisions of this Indenture and the Securities
of any series to the contrary, if the Issuer and a Holder of any Security so
agree or if expressly provided pursuant to Section 2.3, payments of interest on,
and any portion of the principal of, such Holder's Security (other than interest
payable at maturity or on any redemption or repayment date or the final payment
of principal on such Security) shall be made by the Paying Agent, upon receipt
from the Issuer of the immediately available funds by 10:00 a.m., New York City
time (or such other time as may be

                                       21
<PAGE>
agreed to between the Issuer and the Paying Agent), directly to the Holder of
such Security (by Federal funds wire transfer or otherwise) if the Holder has
delivered written instructions to the Trustee 15 days prior to such payment date
requesting that such payment will be so made and designating the bank account to
which such payments shall be so made and in the case of payments of principal
surrenders the same to the Trustee in exchange for a Security or Securities
aggregating the same principal amount as the unredeemed principal amount of the
Securities surrendered. The Trustee shall be entitled to rely on the last
instruction delivered by the Holder pursuant to this Section 3.1 unless a new
instruction is delivered 15 days prior to a payment date. The Issuer will
indemnify and hold each of the Trustee and any Paying Agent harmless against any
loss, liability or expense (including attorneys' fees) resulting from any act or
omission to act on the part of the Issuer or any such Holder in connection with
any such agreement or from making any payment in accordance with any such
agreement.

            SECTION 3.2. Offices for Payments, etc. The Issuer will maintain or
cause to be maintained in The City of New York, an agency where the Securities
of each series may be presented for payment, an agency where the Securities of
each series may be presented for exchange as is provided in this Indenture and,
if applicable, pursuant to Section 2.3, an agency where the Securities of each
series may be presented for registration of transfer as in this Indenture
provided.

            The Issuer will maintain or cause to be maintained in The City of
New York, an agency where notices and demands to or upon the Issuer in respect
of the Securities of any series or this Indenture may be served. The Issuer will
give to the Trustee written notice of the location of each such agency and of
any change of location thereof.

            In case the Issuer shall fail to maintain any such agency in The
City of New York, or shall fail to give such notice of the location or of any
change in the location thereof, presentations and demands may be made and
notices may be served at the Corporate Trust Office of the Trustee.

            The Issuer may from time to time designate one or more agencies
where the Securities of a series may be presented for payment, where the
Securities of that series may be presented for exchange as provided in this
Indenture and pursuant to Section 2.3 and where the Securities of that series
may be presented for registration of transfer as in this Indenture

                                       22
<PAGE>
provided, and the Issuer may from time to time rescind any such designation, as
the Issuer may deem desirable or expedient; provided, however, that no such
designation or rescission shall in any manner relieve the Issuer of its
obligation to maintain the agencies provided for in the immediately preceding
paragraphs. The Issuer will give to the Trustee prompt written notice of any
such designation or rescission thereof.

            SECTION 3.3. Appointment to Fill a Vacancy in Office of Trustee. The
Issuer, whenever necessary to avoid or fill a vacancy in the office of Trustee,
will appoint, in the manner provided in Section 6.10, a Trustee, so that there
shall at all times be a Trustee with respect to each series of Securities
hereunder.

            SECTION 3.4. Paying Agents. Whenever the Issuer shall appoint a
paying agent other than the Trustee with respect to the Securities of any
series, it will cause such paying agent to execute and deliver to the Trustee an
instrument in which such agent shall agree with the Trustee, subject to the
provisions of this Section,

            (a) that it will hold all sums received by it as such agent for the
      payment of the principal of or interest, if any, on the Securities of such
      series (whether such sums have been paid to it by the Issuer or by any
      other obligor on the Securities of such series) in trust for the benefit
      of the Holders of the Securities of such series, or of the Trustee, and

            (b) that it will give the Trustee notice of any failure by the
      Issuer (or by any other obligor on the Securities of such series) to make
      any payment of the principal of or interest, if any, on the Securities of
      such series when the same shall be due and payable.

            The Issuer will, on or prior to 10:00 a.m. on each due date of the
principal of or interest on the Securities of such series, deposit with the
paying agent a sum sufficient to pay such principal or interest so becoming due,
and (unless such paying agent is the Trustee) the Issuer will promptly notify
the Trustee of any failure to take such action.

            If the Issuer shall act as its own paying agent with respect to the
Securities of any Series, it will, on or before each due date of the principal
of or interest on the Securities of such series, set aside, segregate and hold
in

                                       23
<PAGE>
trust for the benefit of the Holders of the Securities of such series a sum
sufficient to pay such principal or interest so becoming due. The Issuer will
promptly notify the Trustee of any failure to take such action.

            Anything in this Section to the contrary notwithstanding, the Issuer
may at any time, for the purpose of obtaining a satisfaction and discharge with
respect to one or more or all series of Securities hereunder, or for any other
reason, pay or cause to be paid to the Trustee all sums held in trust for any
such series by the Issuer or any paying agent hereunder, as required by this
Section, such sums to be held by the Trustee upon the trusts herein contained.

            Anything in this Section to the contrary notwithstanding, the
agreement to hold sums in trust as provided in this Section is subject to the
provisions of Sections 10.4 and 10.5.

            SECTION 3.5. Written Statement to Trustee. The Issuer will deliver
to the Trustee, within 120 days after the end of each fiscal year, commencing
with the fiscal year in which the Securities are first issued, a written
statement, signed by two of its officers (which need not comply with Section
11.5), stating that in the course of the performance of their duties as officers
of the Issuer they would normally have knowledge of any default by the Issuer in
the performance or fulfillment of any covenant, agreement or condition contained
in this Indenture, stating whether or not they have knowledge of any such
default and, if so, specifying each such default of which the signers have
knowledge and the nature thereof.

            SECTION 3.6. Limitation on Mortgages and Liens. The Issuer shall not
at any time, directly or indirectly, create or assume and shall not cause or
permit a Subsidiary, directly or indirectly, to create or assume, otherwise than
in favor of the Issuer or a Wholly Owned Subsidiary, any mortgage, pledge or
other lien or encumbrance upon any Real Property or upon any stock or
indebtedness of any Subsidiary, whether now owned or hereafter acquired, without
making effective provision (and the Issuer covenants that in such case it will
make or cause to be made effective provision) whereby the Securities and any
other indebtedness of the Issuer then entitled thereto shall be secured by such
mortgage, pledge, lien or encumbrance equally and ratably with any and all other
obligations and indebtedness thereby secured, so long as any such other
obligations and

                                       24
<PAGE>
indebtedness shall be so secured; provided, however, that the foregoing covenant
shall not be applicable to the following:

            (a)(i) any mortgage, pledge or other lien or encumbrance existing as
of the date of this Indenture, or (ii) any mortgage, pledge or other lien or
encumbrance on any property hereafter acquired or constructed by the Issuer or a
1Subsidiary, or on which property so constructed is located, and created prior
to, contemporaneously with or within 180 days after, such acquisition or
construction or the commencement of commercial operation of such property to
secure or provide for the payment of any part of the purchase or construction
price of such property, or (iii) the acquisition by the Issuer or a Subsidiary
of such property subject to any mortgage, pledge, or other lien or encumbrance
upon such property existing at the time of acquisition thereof, whether or not
assumed by the Issuer or such Subsidiary, or (iv) any mortgage, pledge, or other
lien or encumbrance existing on the property, shares of stock or indebtedness of
a corporation at the time such corporation shall become a Subsidiary, or (v) any
conditional sales agreement or other title retention agreement with respect to
any property hereafter acquired or constructed; provided that the lien of any
such mortgage, pledge or other lien does not spread to property owned prior to
such acquisition or construction or to other property thereafter acquired or
constructed other than additions to such acquired or constructed property and
other than property on which property so constructed is located, and provided,
further, that if a firm commitment from a bank, insurance company or other
lender or investor (not including the Issuer, a Subsidiary or an Affiliate of
the Issuer) for the financing of the acquisition or construction of property is
made prior to, contemporaneously with or within the 180 day period hereinabove
referred to, the applicable mortgage, pledge, lien or encumbrance shall be
deemed to be permitted by this subsection (a) whether or not created or assumed
within such period;

            (b) any mortgage, pledge or other lien or encumbrance created for
the sole purpose of extending, renewing or refunding any mortgage, pledge, lien
or encumbrance permitted by subsection (a) of this Section; provided, however,
that the principal amount of indebtedness secured thereby shall not exceed the
principal amount of the indebtedness being extended, renewed or refunded and
that such extension, renewal or refunding of any mortgage, pledge, lien or
encumbrance shall be limited to all or any part of the same property that
secured the mortgage, pledge or other lien or encumbrance extended, renewed or
refunded;

                                       25
<PAGE>
            (c) liens for taxes or assessments or governmental charges or levies
not then due and delinquent or the validity of which is being contested in good
faith, and against which an adequate reserve has been established; pledges or
deposits to secure public or statutory obligations or to secure performance in
connection with bids or contracts; materialmen's, mechanics', carrier's,
workmen's, repairmen's or other like liens, or deposits to obtain the release of
such liens; deposits to secure surety, stay, appeal or customs bonds; liens
created by or resulting from any litigation or legal proceeding which is
currently being contested in good faith by appropriate proceedings; licenses or
leases or patents, trademarks or trade names; leases and liens, rights of
reverter and other possessory rights of the lessor thereunder; zoning
restrictions, easements, rights-of-way or other restrictions on the use of real
property or minor irregularities in the title thereto; and any other liens and
encumbrances similar to those described in this subsection, the existence of
which does not, in the opinion of the Issuer, materially impair the use by the
Issuer or a Subsidiary of the affected property in the operation of the business
of the Issuer or a Subsidiary, or the value of such property for the purposes of
such business;

            (d) any contracts for production, research or development with or
for the Government, directly or indirectly, providing for advance, partial or
progress payments on such contracts and for a lien, paramount to all other
liens, upon money advanced or paid pursuant to such contracts, or upon any
material or supplies in connection with the performance of such contracts to
secure such payments to the Government; and liens or other evidences of interest
in favor of the Government, paramount to all other liens, on any equipment,
tools, machinery, land or buildings hereafter constructed, installed or
purchased by the Issuer or a Subsidiary primarily for the purpose of
manufacturing or providing any product or performing any development work,
directly or indirectly, for the Government to secure indebtedness incurred and
owing to the Government for the construction, installation or purchase of such
equipment, tools, machinery, land or buildings. For the purpose of this
subsection (d), "Government" shall mean the Government of the United States of
America and any department or agency thereof;

            (e) any mortgage, pledge or other lien or encumbrance created after
the date of this Indenture on any property leased to or purchased by the Issuer
or a Subsidiary after that date and securing, directly

                                       26
<PAGE>
or indirectly, obligations issued by a State, a territory or a possession of the
United States, or any political subdivision of any of the foregoing, or the
District of Columbia, to finance the cost of acquisition or cost of construction
of such property, provided that the interest paid on such obligations is
entitled to be excluded from gross income of the recipient pursuant to Section
103 of the Code (or any successor to such provision) as in effect at the time of
the issuance of such obligations;

            (f) any pledge of notes, chattel mortgages, leases, accounts
receivable, trade acceptances and other paper arising in the ordinary course of
business, out of installment or conditional sales to or by, or other
transactions involving title retention with, distributors, dealers or other
customers, of merchandise, equipment or services; and

            (g) any mortgage, pledge or other lien or encumbrance not otherwise
permitted under this Section, provided the aggregate amount of indebtedness
secured by all such mortgages, pledges, liens or encumbrances, together with the
Attributable Debt in respect of Sale and Leaseback Transactions not otherwise
permitted except under Section 3.7(a) does not exceed the greater of
$250,000,000 or 5% of Consolidated Stockholders' Equity.

            SECTION 3.7. Limitation on Sale and Leaseback Transactions. The
Issuer shall not, and shall not permit any Subsidiary to, sell or transfer
(except to the Issuer or one or more Wholly Owned Subsidiaries, or both) any
Real Property with the intention of taking back a lease of such property other
than a lease for a temporary period (not exceeding 36 months) with the intent
that the use by the Issuer or such Subsidiary of such property will be
discontinued on or before the expiration of such period (herein referred to as a
"Sale and Leaseback Transaction") unless either:

            (a) the sum of the Attributable Debt with respect to property
involved in Sale and Leaseback Transactions not otherwise permitted under this
Section plus the aggregate amount of indebtedness secured by all mortgages,
pledges, liens and encumbrances not otherwise permitted except under Section
3.6(g) does not exceed the greater of $250,000,000 or 5% of Consolidated
Stockholders' Equity, or

                                       27
<PAGE>
            (b) the Issuer within 120 days after the sale or transfer shall have
been made by the Issuer or by any such Subsidiary applies an amount equal to the
greater of (i) the net proceeds of the sale of the Real Property sold and leased
back pursuant to such arrangement or (ii) the fair market value of the Real
Property sold and leased back at the time of entering into such arrangement
(which may be conclusively determined by the Board of Directors) to the
retirement of the Securities or other Funded Debt of the Company ranking on a
parity with the Securities; provided, that the amount required to be applied to
the retirement of outstanding Securities or other Funded Debt of the Issuer
pursuant to this clause (b) shall be reduced by (1) the principal amount of any
Securities delivered within 120 days after such sale to the Trustee for
retirement and cancellation, and (2) the principal amount of any other Funded
Debt of the Issuer ranking on a parity with the Securities voluntarily retired
by the Issuer within 120 days after such sale, whether or not any such
retirement of Funded Debt shall be specified as being made pursuant to this
clause (b). Notwithstanding the foregoing, no retirement referred to in this
clause (b) may be effected by payment at maturity or pursuant to any mandatory
sinking fund payment or any mandatory prepayment provision.

                                    ARTICLE 4

                    SECURITYHOLDERS' LISTS AND REPORTS BY THE
                             ISSUER AND THE TRUSTEE

            SECTION 4.1. Issuer to Furnish Trustee Information as to Names and
Addresses of Securityholders. The Issuer covenants and agrees that it will
furnish or cause to be furnished to the Trustee a list in such form as the
Trustee may reasonably require of the names and addresses of the holders of the
Securities of each series:

            (a) semiannually and not more than 15 days after each record date
      for the payment of interest on such Securities, as hereinabove specified,
      as of such record date and on dates to be determined pursuant to Section
      2.3 for non-interest bearing securities in each year, and

            (b) at such other times as the Trustee may request in writing,
      within 30 days after receipt by the Issuer of any such

                                       28
<PAGE>
      request as of a date not more than 15 days prior to the time such
      information is furnished,

provided that if and so long as the Trustee shall be the Security registrar for
such series, such list shall not be required to be furnished.

            SECTION 4.2. Preservation and Disclosure of Securityholders' Lists.
(a) The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the holders of
each series of Securities (i) contained in the most recent list furnished to it
as provided in Section 4.1 or (ii) received by it in the capacity of Security
registrar for such series, if so acting. The Trustee may destroy any list
furnished to it as provided in Section 4.1 upon receipt of a new list so
furnished.

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

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

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

                                       29
<PAGE>
            If the Trustee shall elect not to afford to such applicants access
to such information, the Trustee shall, upon the written request of such
applicants, mail to each Securityholder of such series or all Securities, as the
case may be, whose name and address appears in the information preserved at the
time by the Trustee in accordance with the provisions of subsection (a) of this
Section a copy of the form of proxy or other communication which is specified in
such request, with reasonable promptness after a tender to the Trustee of the
material to be mailed and of payment, or provision for the payment, of the
reasonable expenses of mailing; otherwise the Trustee shall be relieved of any
obligation or duty to such applicants respecting their application.

            (c) Each and every holder of Securities, by receiving and holding
the same, agrees with the Issuer and the Trustee that neither the Issuer nor the
Trustee nor any agent of the Issuer or the Trustee shall be held accountable by
reason of the disclosure of any such information as to the names and addresses
of the holders of Securities in accordance with the provisions of Section 4.1 or
this Section, regardless of the source from which such information was derived,
and that the Trustee shall not be held accountable by reason of mailing any
material pursuant to a request made under subsection (b) of this Section.

            SECTION 4.3. Reports by the Issuer. The Issuer covenants to file
with the Trustee and the Commission, and transmit to Holders of Securities, such
information, documents and reports and such summaries thereof as may be required
by the Trust Indenture Act of 1939 at the times and in the manner provided
pursuant to such Act; provided that any such information, documents or reports
which the Issuer may be required to file with the Commission pursuant to Section
13 or Section 15(d) of the Securities Exchange Act of 1934 shall be filed with
the Trustee within 15 days after the same are required to be filed with the
Commission.

            SECTION 4.4. Reports by the Trustee. (a) Within 60 days after each
May 15th, beginning with May 15, 20__, the Trustee shall transmit to the
Securityholders of each series a brief report dated as of such reporting date
that complies with Section 313(a) of the Trust Indenture Act of 1939, if such a
report is required pursuant to Section 313(a) of the Trust

                                       30
<PAGE>
Indenture Act of 1939. The Trustee also shall comply with Section 313(b) of the
Trust Indenture Act of 1939. The Trustee shall also transmit all reports as
required by Section 313(c) of the Trust Indenture Act of 1939.

            (b) A copy of each such report shall, at the time of such
transmission to Securityholders, be furnished to the Issuer and be filed by the
Trustee with each stock exchange upon which the Securities of any applicable
series are listed and also with the Commission. The Issuer agrees to notify the
Trustee with respect to any series when and as the Securities of such series
become admitted to trading on any national securities exchange.

                                    ARTICLE 5

                   REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS
                               ON EVENT OF DEFAULT

            SECTION 5.1. Event of Default Defined; Acceleration of Maturity;
Waiver of Default. "Event of Default" with respect to Securities of any series
wherever used herein, means each one of the following events which shall have
occurred and be continuing (whatever the reason for such Event of Default and
whether it shall be voluntary or involuntary or be effected by operation of law
or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

            (a) default in the payment of any installment of interest upon any
      of the Securities of such series as and when the same shall become due and
      payable, and continuance of such default for a period of 30 days;

            (b) default in the payment of all or any part of the principal of,
      or premium (if any) on, any of the Securities of such series as and when
      the same shall become due and payable either at maturity, upon redemption,
      by declaration or otherwise;

            (c) default in the payment of any sinking fund installment as and
      when the same shall become due and payable by the terms of the Securities
      of such series;

                                       31
<PAGE>
            (d) default in the performance, or breach, of any covenant or
      warranty of the Issuer in respect of the Securities of such series (other
      than a covenant or warranty in respect of the Securities of such series a
      default in whose performance or whose breach is elsewhere in this Section
      specifically dealt with), and continuance of such default or breach for a
      period of 60 days after there has been given, by registered or certified
      mail, to the Issuer by the Trustee or to the Issuer and the Trustee by the
      Holders of at least 25% in principal amount of the Outstanding Securities
      of such 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;

            (e) a court having jurisdiction in the premises shall enter a decree
      or order for relief in respect of the Issuer in an involuntary case under
      any applicable bankruptcy, insolvency or other similar law now or
      hereafter in effect, or appointing a receiver, liquidator, assignee,
      custodian, trustee or sequestrator (or similar official) of the Issuer or
      for any substantial part of its property or ordering the winding up or
      liquidation of its affairs, and such decree or order shall remain unstayed
      and in effect for a period of 60 consecutive days;

            (f) the Issuer shall commence a voluntary case under any applicable
      bankruptcy, insolvency or other similar law now or hereafter in effect, or
      consent to the entry of an order for relief in an involuntary case under
      any such law, or consent to the appointment of or taking possession by a
      receiver, liquidator, assignee, custodian, trustee or sequestrator (or
      similar official) of the Issuer or for any substantial part of its
      property, or make any general assignment for the benefit of creditors; or

            (g) any other Event of Default provided in a supplemental indenture
      or resolution of the Board of Directors under which such series of
      Securities is issued or in the form of Security for such series.

If an Event of Default with respect to Securities of any series at the time
Outstanding occurs and is continuing, then, and in each and every such case,

                                       32
<PAGE>
unless the principal of all of the Securities of such series shall have already
become due and payable, either the Trustee or the Holders of not less than 25%
in aggregate principal amount of the Securities of such series then Outstanding
hereunder by notice in writing to the Issuer (and to the Trustee if given by
Securityholders), may declare the entire principal (or, if the Securities of
such series are Original Issue Discount Securities, such portion of the
principal amount as may be specified in the terms of such series) of all
Securities of such series and the interest accrued thereon, if any, to be due
and payable immediately, and upon any such declaration the same shall become
immediately due and payable.

            The foregoing provisions, however, are subject to the condition that
if, at any time after the principal (or, if the Securities are Original Issue
Discount Securities, such portion of the principal as may be specified in the
terms thereof) of the Securities of any series shall have been so declared due
and payable, and before any judgment or decree for the payment of the moneys due
shall have been obtained or entered as hereinafter provided, the Issuer shall
pay or shall deposit with the Trustee a sum sufficient to pay all matured
installments of interest upon all the Securities of such series and the
principal of any and all Securities of such series which shall have become due
otherwise than by acceleration (with interest upon such principal and, to the
extent that payment of such interest is enforceable under applicable law, on
overdue installments of interest, at the same rate as the rate of interest or
Yield to Maturity (in the case of Original Issue Discount Securities) specified
in the Securities of such series, to the date of such payment or deposit) and
such amount as shall be sufficient to cover reasonable compensation to the
Trustee, its agents, attorneys and counsel, and all other reasonable expenses
and liabilities incurred, and all reasonable advances made, by the Trustee
except as a result of negligence or bad faith, and if any and all Events of
Default under the Indenture with respect to the Securities of that series, other
than the non-payment of the principal of Securities of that series which shall
have become due by acceleration, shall have been cured, waived or otherwise
remedied as provided herein -- then and in every such case the holders of a
majority in aggregate principal amount of all the Securities of such series then
Outstanding, by written notice to the Issuer and to the Trustee, may waive all
defaults with respect to such series and rescind and annul such declaration and
its consequences, but no such waiver or rescission and annulment shall extend to
or shall affect any subsequent default or shall impair any right consequent
thereon.

                                       33
<PAGE>
            For all purposes under this Indenture, if a portion of the principal
of any Original Issue Discount Securities shall have been accelerated and
declared due and payable pursuant to the provisions hereof, then, from and after
such declaration, unless such declaration has been rescinded and annulled, the
principal amount of such Original Issue Discount Securities shall be deemed, for
all purposes hereunder, to be such portion of the principal thereof as shall be
due and payable as a result of such acceleration, and payment of such portion of
the principal thereof as shall be due and payable as a result of such
acceleration, together with interest, if any, thereon and all other amounts
owing thereunder, shall constitute payment in full of such Original Issue
Discount Securities.

            SECTION 5.2. Collection of Indebtedness by Trustee; Trustee May
Prove Debt. The Issuer covenants that in case (a) default shall be made in the
payment of any installment of interest on any of the Securities of any series
when such interest shall have become due and payable, and such default shall
have continued for a period of 30 days or (b) default shall be made in the
payment of all or any part of the principal of any of the Securities of any
series when the same shall have become due and payable, whether upon maturity of
the Securities of such series or upon any redemption or by declaration or
otherwise, then in either such case, upon demand of the Trustee, the Issuer will
pay to the Trustee for the benefit of the Holders of the Securities of such
series the whole amount that then shall have become due and payable on all
Securities of such series for principal or interest, as the case may be (with
interest to the date of such payment upon the overdue principal and, to the
extent that payment of such interest is enforceable under applicable law, on
overdue installments of interest at the same rate as the rate of interest or
Yield to Maturity (in the case of Original Issue Discount Securities) specified
in the Securities of such series); and in addition thereto, such further amount
as shall be sufficient to cover the costs and expenses of collection, including
reasonable compensation to the Trustee and each predecessor Trustee, their
respective agents, attorneys and counsel, and any expenses and liabilities
incurred, and all advances made, by the Trustee and each predecessor Trustee
except as a result of its negligence or bad faith.

            In case the Issuer shall fail forthwith to pay such amounts upon
such demand, the Trustee, in its own name and as trustee of an express trust,
shall be entitled and empowered to institute any action or proceedings at law or
in equity for the collection of the sums so due and unpaid, and may

                                       34
<PAGE>
prosecute any such action or proceedings to judgment or final decree, and may
enforce any such judgment or final decree against the Issuer or other obligor
upon such Securities and collect in the manner provided by law out of the
property of the Issuer or other obligor upon such Securities, wherever situated,
the moneys adjudged or decreed to be payable.

            In case there shall be pending proceedings relative to the Issuer or
any other obligor upon the Securities under Title 11 of the United States Code
or any other applicable Federal or state bankruptcy, insolvency or similar law,
or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor, or in case
of any other comparable judicial proceedings relative to the Issuer or other
obligor upon the Securities of any series, or to the creditors or property of
the Issuer or such other obligor, the Trustee, irrespective of whether the
principal of any Securities shall then be due and payable as therein expressed
or by declaration or otherwise and irrespective of whether the Trustee shall
have made any demand pursuant to the provisions of this Section, shall be
entitled and empowered, by intervention in such proceedings or otherwise:

            (a) to file and prove a claim or claims for the whole amount of
      principal and interest (or, if the Securities of any series are Original
      Issue Discount Securities, such portion of the principal amount as may be
      specified in the terms of such series) owing and unpaid in respect of the
      Securities of any series, and to file such other papers or documents as
      may be necessary or advisable in order to have the claims of the Trustee
      (including any claim for reasonable compensation to the Trustee and each
      predecessor Trustee, and their respective agents, attorneys and counsel,
      and for reimbursement of all expenses and liabilities incurred, and all
      advances made, by the Trustee and each predecessor Trustee, except as a
      result of negligence or bad faith) and of the Securityholders allowed in
      any judicial proceedings relative to the Issuer or other obligor upon the
      Securities of any series, or to the creditors or property of the Issuer or
      such other obligor,

            (b) unless prohibited by applicable law and regulations, to vote on
      behalf of the holders of the Securities of

                                       35
<PAGE>
      any series in any election of a trustee or a standby trustee in
      arrangement, reorganization, liquidation or other bankruptcy or insolvency
      proceedings or person performing similar functions in comparable
      proceedings, and

            (c) to collect and receive any moneys or other property payable or
      deliverable on any such claims, and to distribute all amounts received
      with respect to the claims of the Securityholders and of the Trustee on
      their behalf; and any trustee, receiver, or liquidator, custodian or other
      similar official is hereby authorized by each of the Securityholders to
      make payments to the Trustee, and, in the event that the Trustee shall
      consent to the making of payments directly to the Securityholders, to pay
      to the Trustee such amounts as shall be sufficient to cover reasonable
      compensation to the Trustee, each predecessor Trustee and their respective
      agents, attorneys and counsel, and all reasonable expenses and liabilities
      incurred, and all reasonable advances made, by the Trustee and each
      predecessor Trustee except as a result of negligence or bad faith and all
      other amounts due to the Trustee or any predecessor Trustee pursuant to
      Section 6.6.

            Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or vote for or accept or adopt on behalf of any
Securityholder any plan or reorganization, arrangement, adjustment or
composition affecting the Securities of any series or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any
Securityholder in any such proceeding except, as aforesaid, to vote for the
election of a trustee in bankruptcy or similar person.

            All rights of action and of asserting claims under this Indenture,
or under any of the Securities of any series, may be enforced by the Trustee
without the possession of any of the Securities of such series or the production
thereof on any trial or other proceedings relative thereto, and any such action
or proceedings instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment, subject to the
payment of reasonable expenses, disbursements and compensation of the Trustee,
each predecessor Trustee and their respective agents and attorneys, shall be for
the ratable benefit of the holders of the Securities in respect of which such
action was taken.

                                       36
<PAGE>
            In any proceedings brought by the Trustee (and also any proceedings
involving the interpretation of any provision of this Indenture to which the
Trustee shall be a party) the Trustee shall be held to represent all the holders
of the Securities in respect to which such action was taken, and it shall not be
necessary to make any holders of such Securities parties to any such
proceedings.

            SECTION 5.3. Application of Proceeds. Any moneys collected by the
Trustee pursuant to this Article in respect of any series shall be applied in
the following order at the date or dates fixed by the Trustee and, in case of
the distribution of such moneys on account of principal or interest, upon
presentation of the several Securities in respect of which monies have been
collected and stamping (or otherwise noting) thereon the payment, or issuing
Securities of such series in reduced principal amounts in exchange for the
presented Securities of like series if only partially paid, or upon surrender
thereof if fully paid:

            FIRST: To the payment of costs and expenses applicable to such
      series in respect of which monies have been collected, including
      reasonable compensation to the Trustee and each predecessor Trustee and
      their respective agents and attorneys and of all reasonable expenses and
      liabilities incurred, and all reasonable advances made, by the Trustee and
      each predecessor Trustee except as a result of negligence or bad faith,
      and all other amounts due to the Trustees or any predecessor Trustee
      pursuant to Section 6.6;

            SECOND: In case the principal of the Securities of such series in
      respect of which moneys have been collected shall not have become and be
      then due and payable, to the payment of interest on the Securities of such
      series in default in the order of the maturity of the installments of such
      interest, with interest (to the extent that such interest has been
      collected by the Trustee) upon the overdue installments of interest at the
      same rate as the rate of interest or Yield to Maturity (in the case of
      Original Issue Discount Securities) specified in such Securities, such
      payments to be made ratably to the persons entitled thereto, without
      discrimination or preference;

                                       37
<PAGE>
            THIRD: In case the principal of the Securities of such series in
      respect of which moneys have been collected shall have become and shall be
      then due and payable, to the payment of the whole amount then owing and
      unpaid upon all the Securities of such series for principal and interest,
      with interest upon the overdue principal, and (to the extent that such
      interest has been collected by the Trustee) upon overdue installments of
      interest at the same rate as the rate of interest or Yield to Maturity (in
      the case of Original Issue Discount Securities) specified in the
      Securities of such series; and in case such moneys shall be insufficient
      to pay in full the whole amount so due and unpaid upon the Securities of
      such series, then to the payment of such principal and interest or Yield
      to Maturity, without preference or priority of principal over interest or
      Yield to Maturity, or of interest or Yield to Maturity over principal, or
      of any installment of interest over any other installment of interest, or
      of any Security of such series over any other Security of such series,
      ratably to the aggregate of such principal and accrued and unpaid interest
      or Yield to Maturity; and

            FOURTH: To the payment of the remainder, if any, to the Issuer or
      any other person lawfully entitled thereto.

            SECTION 5.4. Suits for Enforcement. In case an Event of Default has
occurred, has not been waived and is continuing, the Trustee may in its
discretion (but shall not be obligated to) proceed to protect and enforce the
rights vested in it by this Indenture by such appropriate judicial proceedings
as the Trustee shall deem most effectual to protect and enforce any of such
rights, either at law in equity or in bankruptcy or otherwise, whether for the
specific enforcement of any covenant or agreement contained in this Indenture or
in aid of the exercise of any power granted in this Indenture or to enforce any
other legal or equitable right vested in the Trustee by this Indenture or by
law.

            SECTION 5.5. Restoration of Rights on Abandonment of Proceedings. In
case the Trustee shall have proceeded to enforce any right under this Indenture
and such proceedings shall have been discontinued or abandoned for any reason,
or shall have been determined adversely to the Trustee, then and in every such
case the Issuer and the Trustee shall be restored respectively to their former
positions and rights hereunder, and all

                                       38
<PAGE>
rights, remedies and powers of the Issuer, the Trustee and the Securityholders
shall continue as though no such proceedings had been taken.

            SECTION 5.6. Limitations on Suits by Securityholders. No holder of
any Security of any series shall have any right by virtue or by availing of any
provision of this Indenture to institute any action or proceeding at law or in
equity or in bankruptcy or otherwise upon or under or with respect to this
Indenture, or for the appointment of a trustee, receiver, liquidator, custodian
or other similar official or for any other remedy hereunder, unless such holder
previously shall have given to the Trustee written notice of default and of the
continuance thereof, as hereinbefore provided, and unless also the holders of
not less than 25% in aggregate principal amount of the Securities of such series
then outstanding shall have made written request upon the Trustee to institute
such action or proceedings in its own name as trustee hereunder and shall have
offered to the Trustee such reasonable indemnity as it may require against the
costs, expenses and liabilities to be incurred therein or thereby and the
Trustee for 60 days after its receipt of such notice, request and offer of
indemnity shall have failed to institute any such action or proceeding and no
direction inconsistent with any such action or proceeding and no direction
inconsistent with such written request shall have been given to the Trustee
pursuant to Section 5.9; it being understood and intended, and being expressly
covenanted by the taker and Holder of every Security with every other taker and
Holder and the Trustee, that no one or more Holders of Securities of any series
shall have any right in any manner whatever by virtue or by availing of any
provision of this Indenture to affect, disturb or prejudice the rights of any
other such Holder of Securities, or to obtain or seek to obtain priority over or
preference to any other such Holder or to enforce any right under this
Indenture, except in the manner herein provided and for the equal, ratable and
common benefit of all Holders of Securities of the applicable series. For the
protection and enforcement of the provisions of this Section, each and every
Securityholder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.

            SECTION 5.7. Unconditional Right of Securityholders to Institute
Certain Suits. Notwithstanding any other provision in this Indenture and any
provision of any Security, the right of any Holder of any Security to receive
payment of the principal of and interest on such Security on or after the
respective due dates expressed in such Security, or to institute

                                       39
<PAGE>
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 5.8. Powers and Remedies Cumulative; Delay or Omission Not
Waiver of Default. Except as otherwise provided in Section 5.6 and with respect
to the replacement or payment of mutilated, defaced or destroyed, lost or stolen
Securities in the last sentence of Section 2.9, no right or remedy herein
conferred upon or reserved to the Trustee or to the holders of Securities 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.

            No delay or omission of the Trustee or of any holder of Securities
to exercise any right or power accruing upon any Event of Default occurring and
continuing as aforesaid shall impair any such right or power or shall be
construed to be a waiver of any such Event of Default or an acquiescence
therein; and, subject to Section 5.6, every power and remedy given by this
Indenture or by law to the Trustee or to the holders of Securities may be
exercised from time to time, and as often as shall be deemed expedient, by the
Trustee or by the holders of Securities.

            SECTION 5.9. Control by Holders of Securities. The Holders of a
majority in aggregate principal amount of the Securities of any series at the
time Outstanding shall have the right to direct the time, method, and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred on the Trustee with respect to the Securities of
such series by this Indenture; provided that such direction shall not be
otherwise than in accordance with law and the provisions of this Indenture and
provided further that (subject to the provisions of Section 6.1) the Trustee
shall have the right to decline to follow any such direction if the Trustee,
being advised by counsel, shall determine that the action or proceeding so
directed may not lawfully be taken or if the Trustee in good faith by its board
of directors, the executive committee, or a trust committee of directors or
Responsible Officers of the Trustee shall determine that the action or
proceedings so directed would involve the Trustee in personal liability or if
the Trustee in good faith shall so determine

                                       40
<PAGE>
that the actions or forebearances specified in or pursuant to such direction
would be unduly prejudicial to the interests of Holders of the Securities of any
series not joining in the giving of said direction, it being understood that
(subject to Section 6.1) the Trustee shall have no duty to ascertain whether or
not such actions or forebearances are unduly prejudicial to such Holders.

            Nothing in this Indenture shall impair the right of the Trustee in
its discretion to take any action deemed proper by the Trustee and which is not
inconsistent with such direction or directions by Securityholders.

            SECTION 5.10. Waiver of Past Defaults. Subject to Section 5.1, prior
to the declaration of the acceleration of the maturity of the Securities of any
series as provided in Section 5.1, the Holders of a majority in aggregate
principal amount of the Securities of such series at the time Outstanding may on
behalf of the Holders of all the Securities of such series waive any past
default or Event of Default described in clause (d), (e), (f) or (g) of Section
5.1 with respect to such series and its consequences except a default in respect
of a covenant or provision hereof which cannot be modified or amended without
the consent of the Holder of each Security affected. In the case of any such
waiver, the Issuer, the Trustee and the Holders of the Securities of such series
shall be restored to their former positions and rights hereunder, respectively;
but no such waiver shall extend to any subsequent or other default or impair any
right consequent thereon.

            Upon any such waiver, such default shall cease to exist and be
deemed to have been cured and not to have occurred, and any Event of Default
arising therefrom shall be deemed to have been cured, and not to have occurred
for every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent
thereon.

            The Issuer may, in the circumstances permitted by the Trust
Indenture Act of 1939, fix any day as the record date for the purpose of
determining the Holders of Securities of any series entitled to give or take any
request, demand, authorization, direction, notice, consent, waiver or other
action, or to vote on any action, authorized or permitted to be given or taken
by Holders of Securities of such series under Section 5.9 or this Section. If
not set by the Issuer prior to the first solicitation of a Holder of Securities
of such series made by any Person in respect of any such action, or, in the case
of any such vote, prior to such vote, the record date for any such action

                                       41
<PAGE>
or vote shall be the 30th day (or, if later, the date of the most recent list of
Holders required to be provided pursuant to Section 4.1) prior to such first
solicitation or vote, as the case may be. With regard to any record date for
action to be taken by the Holders of one or more series of Securities, only the
Holders of Securities of such series on such date (or their duly designated
proxies) shall be entitled to give or take, or vote on, the relevant action.

            SECTION 5.11. Trustee to Give Notice of Default. The Trustee shall,
within ninety days after the occurrence of a default with respect to the
Securities of any series, give notice of all defaults with respect to that
series actually known to a Responsible Officer of the Trustee to all Holders of
then Outstanding Securities of that series, by mailing such notice to such
Holders at their addresses as they shall appear in the registry books, unless in
each case such defaults shall have been cured before the mailing or publication
of such notice (the term "defaults" for the purpose of this Section being hereby
defined to mean any event or condition which is, or with notice or lapse of time
or both would become, an Event of Default).

            SECTION 5.12. Right of Court to Require Filing of Undertaking to Pay
Costs. All parties to this Indenture agree, and each Holder of any Security by
his acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture or in any suit against the Trustee for any action taken, suffered
or omitted by it as Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder or group of
Securityholders of any series holding in the aggregate more than 10% in
aggregate principal amount of the Securities Outstanding of such series, or to
any suit instituted by any Securityholder for the enforcement of the payment of
the principal of or interest on any Security on or after the due date expressed
in such Security.

                                       42
<PAGE>
                                    ARTICLE 6

                             CONCERNING THE TRUSTEE

            SECTION 6.1. Duties and Responsibilities of the Trustee; During
Default; Prior to Default. With respect to the Holders of any series of
Securities issued hereunder, the Trustee, prior to the occurrence of an Event of
Default with respect to the Securities of a particular series and after the
curing or waiving of all Events of Default which may have occurred with respect
to such series, undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture. In case an Event of Default actually
known to a Responsible Officer of the Trustee with respect to the Securities of
a series has occurred (which has not been cured or waived) the Trustee shall
exercise such of the rights and powers vested in it by this Indenture, and use
the same degree of care and skill in their exercise, as a prudent man would
exercise or use under the circumstances in the conduct of his own affairs.

            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

            (a) prior to the occurrence of an Event of Default with respect to
      the Securities of any series and after the curing or waiving of all such
      Events of Default with respect to such series which may have occurred:

                  (i) the duties and obligations of the Trustee with respect to
            the Securities of any Series shall be determined solely by the
            express provisions of this Indenture, and the Trustee shall not be
            liable except for the performance of such duties and obligations as
            are specifically set forth in this Indenture, and no implied
            covenants or obligations shall be read into this Indenture against
            the Trustee; and

                  (ii) in the absence of bad faith on the part of the Trustee,
            the Trustee may conclusively rely,

                                       43
<PAGE>
            as to the truth of the statements and the correctness of the
            opinions expressed therein, upon any 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 only to
            examine the same on their face to determine whether or not they
            conform to the requirements of this Indenture;

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

            (c) 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 pursuant to Section 5.9 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.

            None of the provisions contained in this Indenture shall require the
Trustee to expend or risk funds or otherwise incur personal financial liability
in the performance of any of its duties or in the exercise of any of its rights
or powers, if, in its opinion, there shall be reasonable ground for believing
that the repayment of such funds or adequate indemnity against such liability is
not reasonably assured to it.

            SECTION 6.2. Certain Rights of the Trustee. Subject to Section 6.1:

            (a) the Trustee may conclusively rely and shall be fully protected
      in acting or refraining from acting upon any resolution, Officers'
      Certificate or any other certificate, statement, instrument, opinion,
      report, notice, request, consent, order, bond, debenture, note, security
      or other paper or

                                       44
<PAGE>
      document believed by it to be genuine and to have been signed or presented
      by the proper party or parties;

            (b) any request, direction, order or demand of the Issuer mentioned
      herein shall be sufficiently evidenced by an Officers' Certificate (unless
      other evidence in respect thereof be herein specifically prescribed); and
      any resolution of the Board of Directors may be evidenced to the Trustee
      by a copy thereof certified by the secretary or an assistant secretary of
      the Issuer;

            (c) the Trustee may consult with counsel (at the expense of the
      Issuer) who may be counsel to the Issuer and any advice or Opinion of
      Counsel shall be full and complete authorization and protection in respect
      of any action taken, suffered or omitted to be taken by it hereunder in
      good faith and in accordance with such advice or Opinion of Counsel;

            (d) the Trustee shall be under no obligation to exercise any of the
      trusts or powers vested in it by this Indenture at the request, order or
      direction of any of the Securityholders pursuant to the provisions of this
      Indenture, unless such Securityholders shall have offered to the Trustee
      indemnity satisfactory to it against the costs, expenses and liabilities
      which might be incurred therein or thereby;

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

            (f) prior to the occurrence of an Event of Default hereunder and
      after the curing or waiving of all Events of Default, 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, consent, order, approval, appraisal, bond, debenture,
      note, security, or other paper or document unless requested in writing so
      to do by the holders of not less than a majority in aggregate principal
      amount of the Securities of all series affected then outstanding; provided
      that, if the payment within

                                       45
<PAGE>
      a reasonable time to the Trustee of the costs, expenses or liabilities
      likely to be incurred by it in the making of such investigation is, in the
      opinion of the Trustee, not reasonably assured to the Trustee, the Trustee
      may require indemnity satisfactory to it against such expenses or
      liabilities as a condition to proceeding; the reasonable expenses of every
      such investigation shall be paid by the Issuer or, if paid by the Trustee
      or any predecessor trustee, shall be repaid by the Issuer upon demand;

            (g) the Trustee may execute any of the trusts or powers hereunder or
      perform any duties hereunder either directly or by or through agents or
      attorneys not regularly in its employ and the Trustee shall not be
      responsible for any misconduct or negligence on the part of any such agent
      or attorney appointed with due care by it hereunder; and

            (h) The Trustee shall not be charged with knowledge of any default
      or Event of Default unless a Responsible Officer of the Trustee (i) has
      actual knowledge of such Default or Event of Default or (ii) the Trustee
      has been notified in writing by the Issuer or any Holder of Securities.

            SECTION 6.3. Trustee Not Responsible for Recitals, Disposition of
Securities or Application of Proceeds Thereof. The recitals contained herein and
in the Securities, except the Trustee's certificates of authentication, shall be
taken as the statements of the Issuer, and the Trustee assumes no responsibility
for the correctness of the same. The Trustee makes no representation as to the
validity or sufficiency of this Indenture or of the Securities. The Trustee
shall not be accountable for the use or application by the Issuer of any of the
Securities or of the proceeds thereof.

            SECTION 6.4. Trustee and Agents May Hold Securities; Collections,
etc. The Trustee or any agent of the Issuer or the Trustee, in its individual or
any other capacity, may become the owner or pledgee of Securities with the same
rights it would have if it were not the Trustee or such agent and, subject to
Sections 6.8 and 6.13, if operative, may otherwise deal with the Issuer and
receive, collect, hold and retain collections from the

                                       46
<PAGE>
Issuer with the same rights it would have if it were not the Trustee or such
agent.

            SECTION 6.5. Moneys Held by Trustee. Subject to the provisions of
Section 10.5 hereof, all moneys received by the Trustee shall, until used or
applied as herein provided, be held in trust for the purposes for which they
were received, but need not be segregated from other funds except to the extent
required by mandatory provisions of law. Neither the Trustee nor any agent of
the Issuer or the Trustee shall be under any liability for interest on any
moneys received by it hereunder.

            SECTION 6.6. Compensation and Indemnification of Trustee and Its
Prior Claim. The Issuer covenants and agrees to pay to the Trustee from time to
time, and the Trustee shall be entitled to, reasonable compensation (which shall
not be limited by any provision of law in regard to the compensation of a
trustee of an express trust) and the Issuer covenants and agrees to pay or
reimburse the Trustee and each predecessor Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by or on behalf
of it in connection with this Indenture (including the reasonable compensation
and the expenses and disbursements of its counsel and of all agents and other
persons not regularly in its employ) except any such expense, disbursement or
advance as may arise from its negligence or bad faith. The Issuer also covenants
to indemnify the Trustee and each predecessor Trustee, its officers, directors,
employees and agents for, and to hold it, its officers, directors, employees and
agents harmless against, any loss, liability or expense incurred without
negligence or bad faith on its part, arising out of or in connection with the
acceptance or administration of this Indenture or the trusts hereunder and its
duties hereunder, including the costs and expenses of defending itself against
or investigating any claim of liability in the premises. The obligations of the
Issuer under this Section to compensate and indemnify the Trustee and each
predecessor Trustee and to pay or reimburse the Trustee and each predecessor
Trustee for expenses, disbursements and advances shall constitute additional
indebtedness hereunder and shall survive the satisfaction and discharge of this
Indenture. Such additional indebtedness shall be a senior claim to that of the
Securities upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the benefit of the holders of particular
Securities, and the Securities are hereby subordinated to such senior claim.

                                       47
<PAGE>
            Whenever the Trustee incurs any fees or expenses (including the fees
and expenses of its counsel) in connection with a Default or an Event of Default
under Section 5.1 hereof, those fees and expenses are intended to constitute
administrative expenses under any bankruptcy law.

            As security for the performance of the obligations of the Issuer
under this Section, the Trustee shall have a lien prior to the Securities upon
all property and funds held or collected by the Trustee as such, except funds
held in trust for the payment of principal of, premium, if any, or interest, if
any, on particular Securities.

            The provisions of this Section shall survive the resignation or
removal of the Trustee and the termination of this Indenture.

            SECTION 6.7. Right of Trustee to Rely on Officers' Certificate, etc.
Subject to Sections 6.1 and 6.2, whenever in the administration of the trusts of
this Indenture the Trustee shall deem it necessary or desirable that a matter be
provided or established prior to taking or suffering or omitting any action
hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of gross negligence or bad faith on
the part of the Trustee, be deemed to be conclusively provided and established
by an Officers' Certificate delivered to the Trustee, and such certificate, in
the absence of gross negligence or bad faith on the part of the Trustee, shall
be full warrant to the Trustee for any action taken, suffered or omitted by it
under the provisions of this Indenture upon the faith thereof.

            SECTION 6.8. Qualification of Trustee. The Trustee is subject to
Section 310(b) of the Trust Indenture Act of 1939 regarding disqualification of
a trustee upon acquiring any conflicting interest. In determining whether the
Trustee has a conflicting interest within the meaning of the Trust Indenture Act
with respect to Securities of any series, there shall be excluded this Indenture
with respect to Securities of any series other than such series.

            SECTION 6.9. Persons Eligible for Appointment as Trustee. The
Trustee for each series of Securities hereunder shall at all times be a
corporation organized and doing business under the laws of the United States of
America or of any state or the District of Columbia (or a Person permitted to
act as trustee by the Commission) having a combined capital and surplus

                                       48
<PAGE>
of at least $50,000,000, and which is authorized under such laws to exercise
corporate trust powers and is subject to supervision or examination by Federal,
state or District of Columbia authority. Such corporation or Person shall have a
place of business in The City of New York if there be such a corporation or
Person in such location willing to act upon reasonable and customary terms and
conditions. If such corporation or Person publishes reports of condition at
least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation or Person shall be deemed to be
its combined capital and surplus as set forth in its most recent report of
condition so published. Such corporation or Person shall not be and shall
represent that it is not an obligor on the Securities or a person directly or
indirectly controlling, controlled by, or under common control with such
obligor. In case at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, the Trustee shall resign
immediately in the manner and with the effect specified in Section 6.10.

            SECTION 6.10. Resignation and Removal; Appointment of Successor
Trustee. (a) The Trustee, or any trustee or trustees hereafter appointed, may at
any time resign with respect to one or more or all series of Securities by
giving written notice of resignation to the Issuer and, if required by
applicable law or regulations, by mailing notice of such resignation to the
Holders of then Outstanding Securities of each series affected at their
addresses as they shall appear on the registry books. Upon receiving such notice
of resignation, the Issuer shall promptly appoint a successor trustee or
trustees with respect to the applicable series by written instrument in
duplicate, executed by authority of the Board of Directors, one copy of which
instrument shall be delivered to the resigning Trustee and one copy to the
successor trustee or trustees. If no successor trustee shall have been so
appointed with respect to any series and have accepted appointment within 30
days after the mailing of such notice of resignation, the resigning trustee may
petition any court of competent jurisdiction for the appointment of a successor
trustee, or any Securityholder who has been a bona fide Holder of a Security or
Securities of the applicable series for at least six months may, subject to the
provisions of Section 5.12, on behalf of himself and all others similarly
situated, petition any such court for the appointment of a successor trustee.
Such court may thereupon, after such notice, if any, as it may deem proper and
prescribe, appoint a successor trustee.

            (b) In case at any time any of the following shall occur:

                                       49
<PAGE>
            (i) the Trustee shall fail to comply with the provisions of Section
      6.8 with respect to any series of Securities after written request
      therefor by the Issuer or by any Securityholder who has been a bona fide
      Holder of a Security or Securities of such series for at least six months;
      or

            (ii) the Trustee shall cease to be eligible in accordance with the
      provisions of Section 6.9 and shall fail to resign after written request
      therefor by the Issuer or by any Securityholder; or

            (iii) the Trustee shall become incapable of acting with respect to
      any series of Securities, or shall be adjudged a bankrupt or insolvent, or
      a receiver or liquidator of the Trustee or of its property shall be
      appointed, or any public officer shall take charge or control of the
      Trustee or of its property or affairs for the purpose of rehabilitation,
      conservation or liquidation;

then, in any such case, the Issuer may remove the Trustee with respect to the
applicable series of Securities and appoint a successor trustee for such series
by written instrument, in duplicate, executed by order of the Board of Directors
of the Issuer, one copy of which instrument shall be delivered to the Trustee so
removed and one copy to the successor trustee, or, subject to the provisions of
Section 5.12, any Securityholder who has been a bona fide Holder of a Security
or Securities 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 removal of the Trustee and the appointment of a successor trustee with
respect to such series. Such court may thereupon, after such notice, if any, as
it may deem proper and prescribe, remove the Trustee and appoint a successor
trustee.

            (c) The Holders of a majority in aggregate principal amount of the
Securities of each series at the time outstanding may at any time remove the
Trustee with respect to Securities of such series and appoint a successor
trustee with respect to the Securities of such series by delivering to the
Trustee so removed, to the successor trustee so appointed and to the Issuer the
evidence provided for in Section 7.1 of the action in that regard taken by the
Securityholders.

                                       50
<PAGE>
            (d) Any resignation or removal of the Trustee with respect to any
series and any appointment of a successor trustee with respect to such series
pursuant to any of the provisions of this Section 6.10 shall become effective
upon acceptance of appointment by the successor trustee as provided in Section
6.11.

            (e) The retiring Trustee shall not be liable for the acts or
omissions of any successor Trustee hereunder.

            (f) Upon appointment of any successor Trustee, all fees, charges and
expenses of the retiring Trustee shall be paid.

            SECTION 6.11. Acceptance of Appointment by Successor Trustee. Any
successor trustee appointed as provided in Section 6.10 shall execute and
deliver to the Issuer and to its predecessor trustee an instrument accepting
such appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee with respect to all or any applicable series shall become
effective and such successor trustee, without any further act, deed or
conveyance, shall become vested with all rights, powers, duties and obligations
with respect to such series of its predecessor hereunder, with like effect as if
originally named as trustee for such series hereunder; but, nevertheless, on the
written request of the Issuer or of the successor trustee, upon payment of its
charges then unpaid, the trustee ceasing to act shall, subject to Section 10.5,
pay over to the successor trustee all moneys at the time held by it hereunder
and shall execute and deliver an instrument which, subject to Section 6.6, need
not include an indemnity by the Issuer, transferring to such successor trustee
all such rights, powers, duties and obligations. Upon request of any such
successor trustee, the Issuer shall execute any and all instruments in writing
for more fully and certainly vesting in and confirming to such successor trustee
all such rights and powers. Any trustee ceasing to act shall, nevertheless,
retain a prior claim upon all property or funds held or collected by such
trustee to secure any amounts then due it pursuant to the provisions of Section
6.6.

            If a successor trustee is appointed with respect to the Securities
of one or more (but not all) series, the Issuer, the predecessor Trustee and
each successor trustee with respect to the Securities of any applicable series
shall execute and deliver an indenture supplemental hereto which shall contain
such provisions as shall be deemed necessary or desirable to confirm that all
the rights, powers, trusts and duties of the predecessor Trustee with

                                       51
<PAGE>
respect to the Securities of any series as to which the predecessor Trustee is
not retiring shall continue to be vested in the predecessor Trustee, and 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 under
separate indentures.

            No successor trustee with respect to any series of Securities shall
accept appointment as provided in this Section 6.11 unless at the time of such
acceptance such successor trustee shall be qualified under the provisions of
Section 6.8 and eligible under the provisions of Section 6.9.

            Upon acceptance of appointment by any successor trustee as provided
in this Section 6.11, the Issuer shall mail notice thereof to the Holders of
Securities of each series affected, by mailing such notice to such Holders at
their addresses as they shall appear on the registry books. If the acceptance of
appointment is substantially contemporaneous with the resignation, then the
notice called for by the preceding sentence may be combined with the notice
called for by Section 6.10. If the Issuer fails to mail such notice within ten
days after acceptance of appointment by the successor trustee, the successor
trustee shall cause such notice to be mailed at the expense of the Issuer.

            SECTION 6.12. Merger, Conversion, Consolidation or Succession to
Business of Trustee. 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 the corporate trust business of the
Trustee, shall be the successor of the Trustee and all other appointments
hereunder; provided, that such corporation shall be qualified under the
provisions of Section 6.8 and eligible under the provisions of Section 6.9
without the execution or filing of any paper or any further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding.

            In case at the time such successor to the Trustee shall succeed to
the trusts created by this Indenture any of the Securities of any series shall
have been authenticated but not delivered, any such successor to the Trustee

                                       52
<PAGE>
may adopt the certificate of authentication of any predecessor Trustee and
deliver such Securities so authenticated; and, in case at that time any of the
Securities of any series shall not have been authenticated, any successor to the
Trustee may authenticate such Securities either in the name of any predecessor
hereunder or in the name of the successor Trustee; and in all such cases such
certificate shall have the full force which it has anywhere in the Securities of
such series or in this Indenture provided that the certificate of the Trustee
shall have; provided, that the right to adopt the certificate of authentication
of any predecessor Trustee or to authenticate Securities of any series in the
name of any predecessor Trustee shall apply only to its successor or successors
by merger, conversion or consolidation.

            SECTION 6.13. Preferential Collection of Claims Against the Issuer.
If the Trustee shall be or shall become a creditor, directly or indirectly,
secured or unsecured, of the Issuer (or any other obligor upon the securities),
the Trustee shall be subject to the provisions of the Trust Indenture Act of
1939 regarding the collection of claims against the Issuer (or any such other
obligor).

                                    ARTICLE 7

                         CONCERNING THE SECURITYHOLDERS

            SECTION 7.1. Evidence of Action Taken by Securityholders. Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by a specified percentage
in principal amount of the Securityholders of any or all series may be embodied
in and evidenced by one or more instruments of substantially similar tenor
signed by such specified percentage of Securityholders in person or by agent
duly appointed in writing; and, except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are
delivered to the Trustee. Proof of execution of any instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture
and (subject to Sections 6.1 and 6.2) conclusive in favor of the Trustee and the
Issuer, if made in the manner provided in this Article.

            SECTION 7.2. Proof of Execution of Instruments and of Holding of
Securities. Subject to Sections 6.1 and 6.2, the execution of any

                                       53
<PAGE>
instrument by a Securityholder or his agent or proxy may be proved by the
Security register or by a certificate of the Security registrar.

            SECTION 7.3. Holders to be Treated as Owners. The Issuer, the
Trustee and any agent of the Issuer or the Trustee may deem and treat the person
in whose name any Security shall be registered upon the Security register for
such series as the absolute owner of such Security (whether or not such Security
shall be overdue and notwithstanding any notation of ownership or other writing
thereon) for the purpose of receiving payment of or on account of the principal
of and, subject to the provisions of this Indenture, interest on such Security
and for all other purposes; and neither the Issuer nor the Trustee nor any agent
of the Issuer or the Trustee shall be affected by any notice to the contrary.
All such payments so made to any such person, or upon his order, shall be valid,
and, to the extent of the sum or sums so paid, effectual to satisfy and
discharge the liability for moneys payable upon any such Security.

            SECTION 7.4. Securities Owned by Issuer Deemed Not Outstanding. In
determining whether the Holders of the requisite aggregate principal amount of
Outstanding Securities of any or all series have concurred in any direction,
consent or waiver under this Indenture, Securities which are owned by the Issuer
or any other obligor on the Securities with respect to which such determination
is being made or by any person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Issuer or any other
obligor on the Securities with respect to which such determination is being made
shall be disregarded and deemed not to be Outstanding for the purpose of any
such determination, except that for the purpose of determining whether the
Trustee shall be protected in relying on any such direction, consent or waiver
only Securities which the Trustee knows are 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 the pledgee's right so to act with
respect to such Securities and that the pledgee is not the Issuer or any other
obligor upon the Securities or any person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Issuer or any
other obligor on the Securities by delivering to the Trustee an Officers'
Certificate and Opinion of Counsel to such effect. In case of a dispute as to
such right, the advice of counsel shall be full protection in respect of any
decision made by the Trustee in accordance with such advice. Upon request of the
Trustee, the Issuer shall furnish to the Trustee promptly an Officers'
Certificate listing and identifying

                                       54
<PAGE>
all Securities, if any, known by the Issuer to be owned or held by or for the
account of any of the above-described persons; and, subject to Sections 6.1 and
6.2, the Trustee shall be entitled to accept such Officers' Certificate as
conclusive evidence of the facts therein set forth and of the fact that all
Securities not listed therein are Outstanding for the purpose of any such
determination.

            SECTION 7.5. Right of Revocation of Action Taken. At any time prior
to (but not after) the evidencing to the Trustee, as provided in Section 7.1, of
the taking of any action by the Holders of the percentage in aggregate principal
amount of the Securities of any or all series, as the case may be, specified in
this Indenture in connection with such action, any Holder of a Security the
serial number of which is shown by the evidence to be included among the serial
numbers of the Securities the Holders of which have consented to such action
may, by filing written notice at the Corporate Trust Office and upon proof of
holding as provided in this Article, revoke such action so far as concerns such
Security. Except as aforesaid any such action taken by the Holder of any
Security shall be conclusive and binding upon such Holder and upon all future
Holders and owners of such Security and of any Securities issued in exchange or
substitution therefor, irrespective of whether or not any notation in regard
thereto is made upon any such Security. Any action taken by the Holders of the
percentage in aggregate principal amount of the Securities of any or all series,
as the case may be, specified in this Indenture in connection with such action
shall be conclusively binding upon the Issuer, the Trustee and the Holders of
all the Securities affected by such action.

                                    ARTICLE 8

                             SUPPLEMENTAL INDENTURES

            SECTION 8.1. Supplemental Indentures Without Consent of
Securityholders. The Issuer, when authorized by a resolution of its Board of
Directors, and the Trustee may from time to time and at any time enter into an
indenture or indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act of 1939 as in force at the date of the
execution thereof) for one or more of the following purposes:

                                       55
<PAGE>
            (a) to convey, transfer, assign, mortgage or pledge to the Trustee
      as security for the Securities of one or more series any property or
      assets;

            (b) to evidence the succession of another corporation to the Issuer,
      or successive successions, and the assumption by the successor corporation
      of the covenants, agreements and obligations of the Issuer pursuant to
      Article Nine;

            (c) 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 6.11;

            (d) to add to the covenants of the Issuer 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
      Issuer;

            (e) to add any additional Events of Default with respect to all or
      any series of Securities (and, if such Event of Default is applicable to
      less than all series of Securities, specifying the series to which such
      Event of Default is applicable);

            (f) to cure any ambiguity or to correct or supplement any provision
      contained herein or in any supplemental indenture which may be defective
      or inconsistent with any other provision contained herein or in any
      supplemental indenture; or to make such other provisions in regard to
      matters or questions arising under this Indenture or under any
      supplemental indenture as the Board of Directors may deem necessary or
      desirable and which, in the opinion of the Board of Directors, shall not
      adversely affect the interests of the Holders of the Securities;

            (g) to change or eliminate any of the provisions of this Indenture;
      provided that any such change or elimination shall become

                                       56
<PAGE>
      effective only when there is no Security Outstanding of any series created
      prior to the execution of such supplemental indenture which is adversely
      affected by such change in or elimination of such provision; and

            (h) to establish the form or terms of Securities of any series as
      permitted by Sections 2.1 and 2.3.

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

            Any supplemental indenture authorized by the provisions of this
Section may be executed without the consent of the Holders of any of the
Securities at the time outstanding, notwithstanding any of the provisions of
Section 8.2.

            SECTION 8.2. Supplemental Indentures With Consent of
Securityholders. With the consent (evidenced as provided in Article Seven) of
the Holders of not less than a majority in aggregate principal amount of the
Securities at the time Outstanding of all series affected by such supplemental
indenture (voting as one class), the Issuer, when authorized by a resolution of
its Board of Directors, and the Trustee may, from time to time and at any time,
enter into an indenture or indentures supplemental hereto (which shall conform
to the provisions of the Trust Indenture Act of 1939 as in force at the date of
execution thereof) for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of any
supplemental indenture or of modifying in any manner the rights of the Holders
of the Securities of each such series; provided, that no such supplemental
indenture shall (a) extend the final maturity of any Security, or reduce the
principal amount thereof, or reduce the rate or extend the time of payment of
interest thereon, or reduce any amount payable on redemption thereof, or make
the principal thereof (including any amount in respect of original issue
discount), or interest or premium thereon payable in any coin or currency other
than that provided in the Securities or in accordance with the terms thereof, or
reduce the amount of the principal of

                                       57
<PAGE>
an Original Issue Discount Security that would be due and payable upon an
acceleration of the maturity thereof pursuant to Section 5.1 or the amount
thereof provable in bankruptcy pursuant to Section 5.2, or impair or affect the
right of any Securityholder to institute suit for the payment thereof or, if the
Securities provide therefor, any right of repayment at the option of the
Securityholder without the consent of the Holder of each Security so affected,
or (b) reduce the aforesaid percentage of Securities of any series, the consent
of the Holders of which is required for any such supplemental indenture, without
the consent of the Holders of each Security so affected.

            A supplemental indenture which 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 which modifies
the rights of Holders of Securities of such series, with respect to such
covenant or provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

            Upon the request of the Issuer, accompanied by a copy of a
resolution of the Board of Directors certified by the secretary or an assistant
secretary of the Issuer authorizing the execution of any such supplemental
indenture, and upon the filing with the Trustee of evidence of the consent of
Securityholders as aforesaid and other documents, if any, required by Section
7.1, the Trustee shall join with the Issuer in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee's
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion, but shall not be obligated to, enter
into such supplemental indenture.

            It shall not be necessary for the consent of the Securityholders
under this Section to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such consent shall approve the
substance thereof.

            Promptly after the execution by the Issuer and the Trustee of any
supplemental indenture pursuant to the provisions of this Section, the Issuer
shall mail a notice thereof to the Holders of then Outstanding Securities of
each series affected thereby, by mailing a notice thereof by first-class mail to
such Holders at their addresses as they shall appear on the Security register.
Any failure of the Issuer to mail such notice, or any defect

                                       58
<PAGE>
therein, shall not, however, in any way impair or affect the validity of any
such supplemental Indenture.

            SECTION 8.3. Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and be deemed to be modified and amended in accordance therewith and
the respective rights, limitations of rights, obligations, duties and immunities
under this Indenture of the Trustee, the Issuer and the Holders of Securities of
each series affected thereby shall thereafter be determined, exercised and
enforced hereunder subject in all respects to such modifications and amendments,
and all the terms and conditions of any such supplemental indenture shall be and
be deemed to be part of the terms and conditions of this Indenture for any and
all purposes.

            SECTION 8.4. Documents to Be Given to Trustee. The Trustee shall, in
addition to the documents required by Section 11.5 hereof, receive an Opinion of
Counsel as conclusive evidence that any supplemental indenture executed pursuant
to this Article 8 complies with the applicable provisions of this Indenture.

            SECTION 8.5. Notation on Securities in Respect of Supplemental
Indentures. Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to the provisions of this
Article may bear a notation in form approved by the Trustee upon advice of
counsel for such series as to any matter provided for by such supplemental
indenture or as to any action taken at any such meeting. If the Issuer or the
Trustee shall so determine, new Securities of any series so modified as to
conform, in the opinion of the Trustee (as to form) and the Board of Directors
(as to form and substance), to any modification of this Indenture contained in
any such supplemental indenture may be prepared by the Issuer, authenticated by
the Trustee and delivered in exchange for the Securities of such series then
outstanding.

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                                    ARTICLE 9

                    CONSOLIDATION, MERGER, SALE OR CONVEYANCE

            SECTION 9.1. Issuer May Consolidate, etc., on Certain Terms. The
Issuer covenants that it will not merge or consolidate with any other
corporation or sell or convey all or substantially all of its assets to any
Person, unless (i) either the Issuer shall be the continuing corporation, or the
successor corporation or the Person which acquires by sale or conveyance
substantially all the assets of the Issuer (if other than the Issuer) shall be a
corporation or entity organized under the laws of the United States of America
or any state thereof and shall expressly assume the due and punctual payment of
the principal of and interest, if any, on all the Securities, according to their
tenor, and the due and punctual performance and observance of all of the
covenants and conditions of this Indenture to be performed or observed by the
Issuer, by supplemental indenture satisfactory to the Trustee, executed and
delivered to the Trustee by such corporation or entity, and (ii) the Issuer or
such successor corporation or entity, as the case may be, shall not, immediately
after such merger or consolidation, or such sale or conveyance, be in default in
the performance of any such covenant or condition.

            SECTION 9.2. Successor Issuer Substituted. In case of any such
consolidation, merger, sale or conveyance, and following such an assumption by
the successor corporation, such successor corporation shall succeed to and be
substituted for the Issuer, with the same effect as if it had been named herein.
Such successor corporation may cause to be signed, and may issue either in its
own name or in the name of the Issuer prior to such succession any or all of the
Securities issuable hereunder, which theretofore shall not have been signed by
the Issuer and delivered to the Trustee; and, upon the order of such successor
corporation instead of the Issuer and subject to all the terms, conditions and
limitations in this Indenture prescribed, the Trustee shall authenticate and
shall deliver any Securities, which previously shall have been signed and
delivered by the officers of the Issuer to the Trustee for authentication, and
any Securities, which such successor corporation thereafter shall cause to be
signed and delivered to the Trustee for that purpose. All of the Securities so
issued, shall in all respects have the same legal rank and benefit under this

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Indenture as the Securities theretofore or thereafter issued in accordance with
the terms of this Indenture as though all of such Securities had been issued at
the date of the execution hereof.

            In case of any such consolidation, merger, sale, lease or conveyance
such changes in phraseology and form (but not in substance) may be made in the
Securities thereafter to be issued as may be appropriate.

            In the event of any such sale or conveyance (other than a conveyance
by way of lease) the Issuer or any successor corporation which shall theretofore
have become such in the manner described in this Article shall be discharged
from all obligations and covenants under this Indenture and the Securities and
may be liquidated and dissolved.

            SECTION 9.3. Opinion of Counsel to Trustee. The Trustee shall, in
addition to the documents required by Section 11.5 hereof, receive an Opinion of
Counsel as conclusive evidence that any such consolidation, merger, sale, lease
or conveyance, and any such assumption, and any such liquidation or dissolution,
complies with this Article 9 and the applicable provisions of this Indenture.

                                   ARTICLE 10

                    SATISFACTION AND DISCHARGE OF INDENTURE;
                                UNCLAIMED MONEYS

            SECTION 10.1. Satisfaction and Discharge of Indenture. This
Indenture shall cease to be of further effect with respect to any series of
Securities (except as to any surviving rights of conversion or registration of
transfer or exchange of Securities of such series expressly provided for herein
or in the form of Security for such series), and the Trustee, on demand of and
at the expense of the Issuer, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture as to such series, when

      (1) either

            (A) all Securities of that series theretofore authenticated and
delivered (other than (i) Securities of such series which have been destroyed,
lost or stolen and which have been replaced or paid as provided in Section 2.9,
and (ii) Securities of such series for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the

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Issuer and thereafter repaid to the Issuer or discharged from such trust, as
provided in Section 3.4) have been delivered to the Trustee canceled or for
cancellation; or

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

                  (i) have become due and payable, or

                  (ii) will become due and payable at their stated maturity
      within one year, or

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

and the Issuer, in the case of (i), (ii) or (iii) above, has deposited or caused
to be deposited with the Trustee as trust funds in trust for the purpose an
amount, which shall be immediately due and payable, sufficient to pay and
discharge the entire indebtedness on such Securities not theretofore delivered
to the Trustee canceled or for cancellation, for principal (and premium, if any)
and interest, if any, 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;

      (2) the Issuer has paid or caused to be paid all other sums payable
hereunder by the Issuer with respect to the Securities of such series; and

      (3) the Issuer 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 with
respect to the Securities of such series have been complied with.

      SECTION 10.2. Application of Trust Money. All money deposited with the
Trustee pursuant to Section 10.1 or Section 10.3 shall be held in trust and
applied by it, in accordance with the provisions of the series of Securities in
respect of which it was deposited and this Indenture, to the payment, either
directly or through any Paying Agent (including the Issuer acting as its own
Paying Agent), to the Persons entitled thereto, of the

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principal (and premium, if any) and interest for whose payment such money has
been deposited with the Trustee; but such money need not be segregated from
other funds except to the extent required by law.

      SECTION 10.3. Defeasance Upon Deposit of Funds or Government Obligations.
Unless pursuant to Section 2.3 provision is made that this Section 10.3 shall
not be applicable to the Securities of any series, at the Issuer's option,
either (a) the Issuer shall be deemed to have been Discharged (as defined below)
from its obligations with respect to any series of Securities after the
applicable conditions set forth below have been satisfied or (b) the Issuer
shall cease to be under any obligation to comply with any term, provision or
condition set forth in Sections 3.6 and 3.7 (and any other Sections applicable
to such Securities that are determined pursuant to Section 2.3 to be subject to
this provision) with respect to any series of Securities at any time after the
applicable conditions set forth below have been satisfied:

            (1) the Issuer shall have deposited or caused to be deposited
      irrevocably with the Trustee as trust funds in trust, specifically pledged
      as security for, and dedicated solely to, the benefit of the Holders of
      the Securities of such series (i) money in an amount, or (ii) the
      equivalent in securities of the government which issued the currency in
      which the Securities of such series are denominated or securities issued
      by government agencies backed by the full faith and credit of such
      government, 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, money in an amount, or (iii) a
      combination of (i) and (ii), sufficient, in the opinion (with respect to
      (ii) and (iii)) of a nationally recognized firm of independent public
      accountants expressed in a written certification thereof delivered to the
      Trustee, to pay and discharge each installment of principal (including
      mandatory sinking fund payments) and any premium of, interest on and any
      repurchase obligations with respect to the outstanding securities of such
      series on the dates such installments of interest or principal or
      repurchase obligations are due;

            (2) no Event of Default or event (including such deposit) which with
      notice or lapse of time would become an Event of Default with respect to
      the Securities of such series shall have occurred and be continuing on the
      date of such deposit; and

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<PAGE>
            (3) the Issuer shall have delivered to the Trustee an Opinion of
      Counsel, from counsel who is not an employee of the Issuer but which may
      be outside general counsel to the Issuer, to the effect that Holders of
      the Securities of such series will not recognize income, gain or loss for
      Federal income tax purposes as a result of the Issuer's exercise of its
      option under this Section 10.3 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 option had not been exercised.

            The term "Discharged" means that the Issuer shall be deemed to have
      paid and discharged the entire indebtedness represented by, and
      obligations under, the Securities of such series and to have satisfied all
      the obligations under this Indenture relating to the Securities of such
      series (and the Trustee, at the expense of the Issuer, shall execute
      proper instruments acknowledging the same), except (A) the rights of
      Holders of Securities to receive, from the trust fund described in
      Subsection (1) above, payment of the principal and any premium of and any
      interest on such Securities when such payments are due; (B) the Issuer's
      obligations with respect to such Securities under Sections 2.8, 2.9, 3.2,
      3.4, 6.6 and 10.2; and (C) the rights, powers, trusts, duties and
      immunities of the Trustee hereunder (including, without limitation, its
      rights under Section 6.6 hereunder).

            SECTION 10.4. Repayment of Moneys Held by Paying Agent. In
connection with the satisfaction and discharge of this Indenture with respect to
Securities of any series, all moneys then held by any paying agent under the
provisions of this Indenture with respect to such series of Securities shall,
upon demand of the Issuer, be repaid to it or paid to the Trustee and thereupon
such paying agent shall be released from all further liability with respect to
such moneys.

            SECTION 10.5. Return of Moneys Held by Trustee and Paying Agent
Unclaimed for Two Years. Any moneys deposited with or paid to the Trustee or any
paying agent for the payment of the principal of or interest on any Security of
any series and not applied but remaining unclaimed for two years after the date
upon which such principal or interest shall have become due and payable, shall,
upon the written request of the Issuer and unless otherwise required by
mandatory provisions of applicable

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escheat or abandoned or unclaimed property law (as advised by counsel, pursuant
to Section 6.2), be repaid to the Issuer by the Trustee for such series or such
paying agent, and the Holder of the Security of such series shall, unless
otherwise required by mandatory provisions of applicable escheat or abandoned or
unclaimed property laws, thereafter look only to the Issuer for any payment
which such Holder may be entitled to collect, and all liability of the Trustee
or any paying agent with respect to such moneys shall thereupon cease.

            SECTION 10.6. Reinstatement. If the Trustee is unable to apply any
money in accordance with Sections 10.2 or 10.3, as the case may be, by reason of
any legal proceeding or by reason of order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, the Issuer's obligations under this Indenture and the Securities
shall be revived and reinstated as though no deposit had occurred pursuant to
Section 10.2 or 10.3, as the case may be, until such time as the Trustee is
permitted to apply all such money in accordance with Section 10.2 or 10.3, as
the case may be; provided, however, that if the Issuer has made payment of
principal of, or interest on any Securities because of the reinstatement of its
obligations, the Issuer shall be subrogated to the rights of Holders of such
Securities to receive such payment from money held by the Trustee.

                                   ARTICLE 11

                            MISCELLANEOUS PROVISIONS

            SECTION 11.1. Incorporators, Stockholders, Officers and Directors of
Issuer Exempt from Individual Liability. No recourse under or upon any
obligation, covenant or agreement contained in this Indenture, or in any
Security, or because of any indebtedness evidenced thereby, shall be had against
any incorporator, as such, or against any past, present or future stockholder,
officer or director, as such, of the Issuer or of any successor, either directly
or through the Issuer or any successor, under any rule of law, statute or
constitutional provision or by the enforcement of any assessment or by any legal
or equitable proceeding or otherwise, all such liability being expressly waived
and released by the acceptance of the Securities by the Holders thereof and as
part of the consideration for the issue of the Securities.

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            SECTION 11.2. Provisions of Indenture for the Sole Benefit of
Parties and Holders of Securities. Nothing in this Indenture or in the
Securities, expressed or implied, shall give or be construed to give to any
person, firm or corporation, other than the parties hereto and their successors
and the Holders of the Securities any legal or equitable right, remedy or claim
under this Indenture or under any covenant or provision herein contained, all
such covenants and provisions being for the sole benefit of the parties hereto
and their successors and of the Holders of the Securities.

            SECTION 11.3. Successors and Assigns of Issuer Bound by Indenture.
All the covenants, stipulations promises and agreements in this Indenture
contained by or on behalf of the Issuer shall bind its successors and assigns,
whether so expressed or not.

            SECTION 11.4. Notices and Demands on Issuer, Trustee and Holders of
Securities. Any notice or demand which by any provision of this Indenture is
required or permitted to be given or served by the Trustee or by the Holders of
Securities to or on the Issuer may be given or served by being deposited postage
prepaid, first-class mail (except as otherwise specifically provided herein)
addressed (until another address of the Issuer is filed by the Issuer with the
Trustee) to Unisys Corporation, Unisys Way, Blue Bell, Pennsylvania 19424,
Attention: General Counsel. Any notice, direction, request or demand by the
Issuer or any holder of Securities to or upon the Trustee shall be deemed to
have been sufficiently given or made, for all purposes, if given or made at the
Corporate Trust Office.

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

            SECTION 11.5. Officers' Certificates and Opinions of Counsel;
Statements to Be Contained Therein. Upon any application or demand by the Issuer
to the Trustee to take any action under any of the provisions of this Indenture,
the Issuer shall furnish to the Trustee an Officers' Certificate stating that
all conditions precedent 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 such action is

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<PAGE>
authorized or permitted by this Indenture and that all such conditions precedent
have been complied with.

            Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
provided for in this Indenture shall include (a) a statement that the person
making such certificate or opinion has read such covenant or condition, (b) 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, (c) a statement that, in the opinion of such person, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with and (d) a statement as to whether or not, in the opinion of such
person, such condition or covenant has been complied with.

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

            Any certificate, statement or opinion of an officer of the Issuer or
of counsel may be based, insofar as it relates to accounting matters, upon a
certificate or opinion of or representations by an accountant or firm of
accountants in the employ of the Issuer, unless such officer or counsel, as the
case may be, knows that the certificate or opinion or representations with
respect to the accounting matters upon which his certificate, statement or
opinion may be based as aforesaid are erroneous, or in the exercise of
reasonable care should know that the same are erroneous.

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            Any certificate or opinion of any independent firm of public
accountants filed with the Trustee shall contain a statement that such firm is
independent.

            SECTION 11.6. Payments Due on Saturdays, Sundays and Holidays. If
the date of maturity of interest, if any, on or principal of the Securities of
any series or the date fixed for redemption or repayment of any such Security
shall not be a Business Day, then payment of interest or principal need not be
made on such date, but may be made on the next succeeding Business Day with the
same force and effect as if made on the date of maturity or the date fixed for
redemption, and no interest shall accrue for the period after such date.

            SECTION 11.7. Conflict of Any Provision of Indenture with Trust
Indenture Act of 1939. If and to the extent that any provision of this Indenture
limits, qualifies or conflicts with another provision included in this Indenture
which is required to be included herein by any of Sections 310 to 317,
inclusive, of the Trust Indenture Act of 1939, such required provision shall
control.

            SECTION 11.8. New York Law to Govern. This Indenture and each
Security shall be deemed to be a contract under the laws of the state of New
York, and for all purposes shall be construed in accordance with the laws of
such state, except as may otherwise be required by mandatory provisions of law.

            SECTION 11.9. Counterparts. This Indenture may be executed in any
number of counterparts, each of which shall be an original; but such
counterparts shall together constitute one and the same instrument.

            SECTION 11.10. Effect of Headings. The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

            SECTION 11.11. Securities in a Foreign Currency or in ECU. (a)
Whenever for purposes of this Indenture any action may be taken by the holders
of a specified percentage in aggregate principal amount of Securities of all
series at the time outstanding and, at such time, there are outstanding
Securities of any series which are denominated in a currency or currencies or
currency unit or currency units other than Dollars, then the principal amount

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of Securities of such series which shall be deemed to be outstanding for the
purpose of taking such action shall be that amount of Dollars that could be
obtained for such principal amount based on (i) in the case of Securities
denominated in a foreign currency, the Market Exchange Rate in effect on the
date on which such action is to be taken (the "Determination Date") or (ii) in
the case of Securities denominated in ECU, the Official ECU Exchange Rate (or,
if ECU ceases to be used both (a) within the European Monetary System and (b)
for the settlement of transactions by public institutions of or within the
European Communities, then based on the Dollar Equivalent of the ECU) on the
Determination Date. The provisions of this paragraph shall apply in determining
the equivalent number of votes to which each securityholder or proxy shall be
entitled in respect of Securities of a series denominated in a currency other
than Dollars in connection with any vote taken by holders of Securities pursuant
to the terms of this Indenture.

            (b) For the purposes of this Section 11.11, the following terms
shall have the following meanings:

            "Component Currency" means any currency which, on the Conversion
      Date, was a component currency of the ECU.

            "Conversion Date" means the last date on which ECU was used either
      (i) within the European Monetary System or (ii) for the settlement of
      transactions by public institutions of or within the European Communities.

            "Dollar Equivalent of the ECU" means the amount, as calculated by
      the Trustee on each Determination Date, equal to the sum obtained by
      adding together the results obtained by converting the Specified Amount of
      each Component Currency into Dollars at the Market Exchange Rate on the
      Determination Date for such Component Currency.

            "European Communities" means the European Economic Community, the
      European Coal and Steel Community and the European Atomic Energy
      Community.

            "Market Exchange Rate" shall mean for any currency the noon Dollar
      buying rate for that currency for cable transfers quoted in New York City
      on the Determination Date as certified

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      for customs purposes by the Federal Reserve Bank of New York. If such
      rates are not available for any reason with respect to one or more
      currencies for which an exchange rate is required, the Trustee shall use
      without liability on its part, such quotation of the Federal Reserve Bank
      of New York as of the most recent available date, or if such quotation is
      unavailable, quotations from Citibank, N.A., or if unavailable, any other
      bank with combined assets of at least $500 million in New York City or in
      the country of issue of the currency in question, or such other quotations
      as the Issuer shall deem appropriate. Unless otherwise specified by the
      Trustee, if there is more than one market for dealing in any currency by
      reason of foreign exchange regulations or otherwise, the market to be used
      in respect of such currency shall be that upon which a nonresident issuer
      of securities designated in such currency would purchase such currency in
      order to make payments in respect of such securities, as advised by the
      Issuer.

            "Official ECU Exchange Rate" applicable to any currency with respect
      to any payment to be made hereunder means the exchange rate between the
      ECU and such currency reported by the Commission of the European
      Communities (currently based on the rates in effect at 2:30 p.m., Brussels
      time, on the relevant exchange markets) or if such exchange rate ceases to
      be so reported, then such exchange rate shall be determined by the Trustee
      using, without liability on its part, quotations from Citibank, N.A., or
      if unavailable, any other bank with combined assets of at least $500
      million in New York City or if such quotation is unavailable, such other
      quotations as the Issuer shall deem appropriate, on the applicable
      Determination Date.

            "Specified Amount" of a Component Currency means the number of units
      or fractions thereof which such Component Currency represented in the ECU
      on the Conversion Date. If after the Conversion Date the official unit of
      any Component Currency is altered by way of combination or subdivision,
      the Specified Amount of such Component Currency shall be divided or
      multiplied in the same proportion. If after the Conversion Date two or
      more Component Currencies are consolidated into a single currency, the
      respective Specified Amounts of such

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      Component Currencies shall be replaced by an amount in such single
      currency equal to the sum of the respective Specified Amounts of such
      consolidated Component Currencies expressed in such single currency, and
      such amount shall thereafter be a Specified Amount and such single
      currency shall thereafter be a Component Currency. If after the Conversion
      Date any Component Currency shall be divided into two or more currencies,
      the Specified Amount of such Component Currency shall be replaced by
      specified amounts of such two or more currencies, the sum of which, at the
      market Exchange Rate of such two or more currencies on the date of such
      replacement, shall be equal to the Specified Amount of such former
      Component Currency divided by the number of currencies into which such
      Component Currency was divided, and such amounts shall thereafter be
      Specified Amounts and such currencies shall thereafter be Component
      Currencies.

            (c) All decisions and determinations of the Trustee regarding the
Market Exchange Rate and the ECU Exchange Rate shall, in the absence of manifest
error, be conclusive for all purposes and irrevocably binding upon the Issuer
and all Holders.

            SECTION 11.12. Judgment Currency. The obligation of the Issuer in
respect of any sum due to any securityholder hereunder shall, notwithstanding
any judgment in a currency (the "Judgment Currency") other than the currency in
which the payment is due (the "Required Currency"), be discharged only to the
extent that on the Business Day following receipt by such securityholder of any
sum adjudged to be so due in the Judgment Currency, such securityholder may in
accordance with normal banking procedures purchase the amount originally due to
such securityholder in the Required Currency with the Judgment Currency; if the
amount of the Required Currency so purchased is less than the sum originally due
to such securityholder in the Required Currency, the Issuer agrees, as a
separate obligation and notwithstanding any such judgment, to indemnify such
securityholder against such loss, and if the amount of the Required Currency so
purchased exceeds the sum originally due to such securityholder, such
securityholder agrees to remit to the Issuer such excess.

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                                   ARTICLE 12

                   REDEMPTION OF SECURITIES AND SINKING FUNDS

            SECTION 12.1. Applicability of Article. The provisions of this
Article shall be applicable to the Securities of any series which are redeemable
before their maturity or to any sinking fund for the retirement of Securities of
a series except as otherwise specified as contemplated by Section 2.3 for
Securities of such series.

            SECTION 12.2. Notice of Full and Partial Redemption; Partial
Redemptions. Notice of redemption to the Holders of Securities of any series to
be redeemed as a whole or in part at the option of the Issuer shall be given by
mailing notice of such redemption by first class mail, postage prepaid, at least
30 days and not more than 60 days prior to the date fixed for redemption to such
Holders of Securities of such series at their last addresses as they shall
appear upon the registry books. Any notice which is mailed in the manner herein
provided shall be conclusively presumed to have been duly given, whether or not
the Holder receives the notice. Failure to give notice by mail, or any defect in
the notice to the Holder of any Security of a series designated for redemption
as a whole or in part shall not affect the validity of the proceedings for the
redemption of any other Security of such series.

            The notice of redemption to each such Holder shall specify (i) the
principal amount of each Security of such series held by such Holder to be
redeemed, (ii) the date fixed for redemption, (iii) the redemption price (and
premium, if any), (iv) the place or places of payment, (v) that payment will be
made upon presentation and surrender of such Securities, (vi) that such
redemption is pursuant to the mandatory or optional sinking fund, or both, if
such be the case, (vii) that interest accrued to the date fixed for redemption
will be paid as specified in such notice and (viii) that on and after said date
interest thereon or on the portions thereof to be redeemed will cease to accrue.
In case any Security of a series is to be redeemed in part only the notice of
redemption shall state the portion of the principal amount thereof to be
redeemed and shall state that on and after the date fixed for redemption, upon
surrender of such Security, a new Security or Securities of such series in
principal amount equal to the unredeemed portion thereof will be issued.

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            The notice of redemption of Securities of any series to be redeemed
at the option of the Issuer shall be given by the Issuer or, at the Issuer's
request, by the Trustee in the name and at the expense of the Issuer.

            On or before 10 a.m., New York City time, on the redemption date
specified in the notice of redemption given as provided in this Section, the
Issuer will deposit with the Trustee or with one or more paying agents (or, if
the Issuer is acting as its own paying agent, set aside, segregate and hold in
trust as provided in Section 3.4) an amount of money sufficient to redeem on the
redemption date all the Securities of such series so called for redemption at
the appropriate redemption price, together with accrued interest to the date
fixed for redemption (and premium, if any). The election of the Issuer to redeem
any Securities shall be evidenced by a Board Resolution in addition to any other
requirements set forth hereunder. If less than all the outstanding Securities of
a series are to be redeemed, the Issuer will deliver to the Trustee at least 60
days (or such shorter period as shall be acceptable to the Trustee for its
convenience) prior to the date fixed for redemption an Officers' Certificate
stating the aggregate principal amount of Securities to be redeemed.

            If less than all the Securities of a series are to be redeemed, the
Trustee shall, subject to Section 12.4, select by lot Securities of such Series
to be redeemed in whole or in part. Securities may be redeemed in part in
multiples equal to the minimum authorized denomination for Securities of such
series or any multiple thereof. The Trustee shall promptly notify the Issuer in
writing of the Securities of such series selected for redemption and, in the
case of any Securities of such series selected for partial redemption, the
principal amount thereof to be redeemed. For all purposes of this Indenture,
unless the context otherwise requires, all provisions relating to the redemption
of Securities of any series shall relate, in the case of any Security redeemed
or to be redeemed only in part, to the portion of the principal amount of such
Security which has been or is to be redeemed.

            SECTION 12.3. Payment of Securities Called for Redemption. If notice
of redemption has been given as above provided, the Securities or portions of
Securities specified in such notice shall become due and payable on the date and
at the place stated in such notice at the applicable redemption price (and
premium, if any), together with interest, if any, accrued to the date fixed for
redemption, and on and after said date (unless the Issuer shall default in the
payment of such Securities at the

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<PAGE>
redemption price, together with interest accrued to said date) interest on the
Securities or portions of Securities so called for redemption shall cease to
accrue shall be void, and except as provided in Sections 6.5 and 10.5, such
Securities shall cease from and after the date fixed for redemption to be
entitled to any benefit or security under this Indenture, and the Holders
thereof shall have no right in respect of such Securities except the right to
receive the redemption price (and premium, if any) thereof and unpaid interest
to the date fixed for redemption. On presentation and surrender of such
Securities at a place of payment specified in said notice, said Securities or
the specified portions thereof shall be paid and redeemed by the Issuer at the
applicable redemption price (and premium, if any), together with interest, if
any, accrued thereon to the date fixed for redemption; provided that payment of
interest, if any, becoming due on or prior to the date fixed for redemption
shall be payable to the Holders of Securities registered as such on the relevant
record date subject to the terms and provisions of Section 2.4 hereof.

            If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal shall, until paid or duly
provided for, bear interest from the date fixed for redemption at the rate of
interest or Yield to Maturity (in the case of an Original Issue Discount
Security) borne by the Security.

            Upon presentation of any Security redeemed in part only, the Issuer
shall execute and the Trustee shall authenticate and deliver to or on the order
of the Holder thereof, at the expense of the Issuer, a new Security or
Securities of such series, of authorized denominations, in principal amount
equal to the unredeemed portion of the Security so presented.

            SECTION 12.4. Exclusion of Certain Securities from Eligibility for
Selection for Redemption. Securities shall be excluded from eligibility for
selection for redemption if they are identified by registration and certificate
number in a written statement signed by an authorized officer of the Issuer and
delivered to the Trustee at least 40 days prior to the last date on which notice
of redemption may be given as being owned of record and beneficially by, and not
pledged or hypothecated by, either (a) the Issuer or (b) an entity specifically
identified in such written statement directly or indirectly controlling or
controlled by or under direct or indirect common control with the Issuer.

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<PAGE>
            SECTION 12.5. Mandatory and Optional Sinking Funds. 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". The
date on which a sinking fund payment is to be made is herein referred to as the
"sinking fund payment date".

            In lieu of making all or any part of any mandatory sinking fund
payment with respect to any series of Securities in cash, the Issuer may at its
option (a) deliver to the Trustee Securities of such series theretofore
purchased or otherwise acquired (except upon redemption pursuant to the
mandatory sinking fund) by the Issuer or receive credit for Securities of such
series (not previously so credited) theretofore purchased or otherwise acquired
(except as aforesaid) by the Issuer and delivered to the Trustee for
cancellation pursuant to Section 2.10, (b) receive credit for optional sinking
fund payments (not previously so credited) made pursuant to this Section, or (c)
receive credit for Securities of such series (not previously so credited)
redeemed by the Issuer through any optional redemption provision contained in
the terms of such series. Securities so delivered or credited shall be received
or credited by the Trustee at the sinking fund redemption price specified in
such Securities.

            On or before the forty-fifth day next preceding each sinking fund
payment date for any series, the Issuer will deliver to the Trustee a written
statement signed by an authorized officer of the Issuer (a) specifying the
portion of the mandatory sinking fund payment to be satisfied by payment of cash
and the portion to be satisfied by credit of Securities of such series, (b)
stating that none of the Securities of such series has theretofore been so
credited, (c) stating that no defaults in the payment of interest or Events of
Default with respect to such series have occurred (which have not been waived or
cured) and are continuing and (d) stating whether or not the Issuer intends to
exercise its right to make an optional sinking fund payment with respect to such
series and, if so, specifying the amount of such optional sinking fund payment
which the Issuer intends to pay on or before the next succeeding sinking fund
payment date. Any Securities of such series to be credited and required to be
delivered to the Trustee in order for the Issuer to be entitled to credit
therefor as aforesaid which have not theretofore been delivered to the Trustee
shall be delivered for cancellation pursuant to Section 2.10 to the Trustee with
such written statement (or reasonably

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<PAGE>
promptly thereafter if acceptable to the Trustee). Such written statement shall
be irrevocable and upon its receipt by the Trustee the Issuer shall become
unconditionally obligated to make all the cash payments or payments therein
referred to, if any, on or before the next succeeding sinking fund payment date.
Failure of the Issuer, on or before any such forty-fifth day, to deliver such
written statement and Securities specified in this paragraph, if any, shall not
constitute a default but shall constitute, on and as of such date, the
irrevocable election of the Issuer (i) that the mandatory sinking fund payment
for such series due on the next succeeding sinking fund payment date shall be
paid entirely in cash without the option to deliver or credit Securities of such
series in respect thereof and (ii) that the Issuer will make no optional sinking
fund payment with respect to such series as provided in this Section.

            If the sinking fund payment or payments (mandatory or optional or
both) to be made in cash on the next succeeding sinking fund payment date plus
any unused balance of any preceding sinking fund payments made in cash shall
exceed $50,000 (or a lesser sum if the Issuer shall so request) with respect to
the Securities of any particular series, such cash shall be applied on the next
succeeding sinking fund payment date to the redemption of Securities of such
series at the sinking fund redemption price together with accrued interest to
the date fixed for redemption. If such amount shall be $50,000 or less and the
Issuer makes no such request then it shall be carried over and invested by the
Trustee in mutual or trust fund institutions which are registered with the
Commission under the Securities Act of 1933, as amended, and the Investment
Company Act of 1940, as amended, and which have underlying investments
consisting solely of and limited to United States Government obligations until a
sum in excess of $50,000 is available. The Trustee, upon written instruction
from the Issuer, shall select, in the manner provided in Section 12.2, for
redemption on such sinking fund payment date a specified principal amount of
Securities of such series then Outstanding to absorb said cash, as nearly as may
be, and shall (if requested in writing by the Issuer) inform the Issuer of the
serial numbers of the Securities of such series (or portions thereof) so
selected. Securities of any series which are (a) owned by the Issuer or are
certified by the Issuer by means of an Officers' Certificate to be owned by an
entity directly or indirectly controlling or controlled by or under direct or
indirect common control with the Issuer, as shown by the Security register, and
not actually known to a Responsible Officer of the Trustee to have been pledged
or hypothecated by the Issuer or any such entity; or (b) identified in an
Officers' Certificate at least 60 days

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<PAGE>
prior to the sinking fund payment date as being beneficially owned by, and not
pledged or hypothecated by, the Issuer or an entity directly or indirectly
controlling or controlled by or under direct or indirect common control with the
Issuer shall be excluded from Securities of such series eligible for selection
for redemption. The Trustee, in the name and at the expense of the Issuer (or
the Issuer, if it shall so request the Trustee in writing) shall cause notice of
redemption of the Securities of such series to be given in substantially the
manner provided in Section 12.2 (and with the effect provided in Section 12.3)
for the redemption of Securities of such series in part at the option of the
Issuer. The amount of any sinking fund payments not so applied or allocated to
the redemption of Securities of such series shall be added to the next cash
sinking fund payment for such series and, together with such payment, shall be
applied in accordance with the provisions of this Section. Any and all sinking
fund moneys held on the stated maturity date of the Securities of any particular
series (or earlier, if such maturity is accelerated), which are not held for the
payment or redemption of particular Securities of such series shall be applied,
together with other moneys, if necessary, sufficient for the purpose, to the
payment of the principal of, and interest on, the Securities of such series at
maturity.

            At least one day before each sinking fund payment date, the Issuer
shall pay to the Trustee in cash or shall otherwise provide for the payment of
all interest accrued to the date fixed for redemption on Securities to be
redeemed on the next following sinking fund payment date.

            The Trustee shall not redeem or cause to be redeemed any Securities
of a series with sinking fund moneys or mail any notice of redemption of
Securities for such series by operation of the sinking fund during the
continuance of a default in payment of interest on such Securities or of any
Event of Default except that, where the mailing of notice of redemption of any
Securities shall theretofore have been made, the Trustee shall redeem or cause
to be redeemed such Securities, provided that it shall have received from the
Issuer a sum sufficient for such redemption. Except as aforesaid, any moneys in
the sinking fund for such series at the time when any such default or Event of
Default shall occur, and any moneys thereafter paid into the sinking fund,
shall, during the continuance of such default or Event of Default, be deemed to
have been collected under Article Five and held for the payment of all such
Securities. In case such Event of Default shall have been waived as provided in
Section 5.10 or the default cured on or before the sixtieth day preceding the
sinking fund payment date in any year,

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such moneys shall thereafter be applied on the next succeeding sinking fund
payment date in accordance with this Section to the redemption of such
Securities.

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<PAGE>
            IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed as of ____________________.

                                          UNISYS CORPORATION

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

                                          HSBC Bank USA
                                          not in its individual capacity,
                                          but solely as Trustee

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

                                       79

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