Document:

Exhibit 4(a)

 

 

 

CNH EQUIPMENT TRUST 200X-Y

 

 

INDENTURE

 

 

between

 

 

CNH
EQUIPMENT TRUST 200X-Y

 

 

and

 

 

[JPMORGAN CHASE BANK, N.A.]

as
Indenture Trustee.

 

 

Dated as of [Month Day],
200X

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
  ARTICLE I

  	
  DEFINITIONS
  AND INCORPORATION BY REFERENCE

  	
  2

  
	
   

  	
   

  
	
   

  	
  SECTION 1.1.

  	
  Definitions

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 1.2.

  	
  Incorporation by
  Reference of Trust Indenture Act

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 1.3.

  	
  Rules of
  Construction

  	
  3

  
	
   

  	
   

  
	
  ARTICLE II

  	
  THE
  NOTES

  	
  3

  
	
   

  	
   

  
	
   

  	
  SECTION 2.1.

  	
  Form

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.2.

  	
  Execution, Authentication
  and Delivery

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.3.

  	
  Temporary Notes

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.4.

  	
  Registration;
  Registration of Transfer and Exchange

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.5.

  	
  Mutilated, Destroyed,
  Lost or Stolen Notes

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.6.

  	
  Persons Deemed Owner

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.7.

  	
  Payment of Principal
  and Interest; Defaulted Interest

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.8.

  	
  Cancellation

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.9.

  	
  Release of Collateral

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.10.

  	
  Book-Entry Notes

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.11.

  	
  Notices to Clearing
  Agency

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.12.

  	
  Definitive Notes

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.13.

  	
  Tax Treatment

  	
  9

  
	
   

  	
   

  
	
  ARTICLE III

  	
  COVENANTS

  	
  9

  
	
   

  	
   

  
	
   

  	
  SECTION 3.1.

  	
  Payment of Principal
  and Interest

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.2.

  	
  Maintenance of Office
  or Agency

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.3.

  	
  Money for Payments To
  Be Held in Trust

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.4.

  	
  Existence

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.5.

  	
  Protection of the Trust
  Estate

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.6.

  	
  Opinions as to the
  Trust Estate

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.7.

  	
  Performance of
  Obligations; Servicing of Receivables

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.8.

  	
  Negative Covenants

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.9.

  	
  Annual Statement as to
  Compliance

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.10.

  	
  Issuer
  May Consolidate, etc., Only on Certain Terms

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.11.

  	
  Successor or Transferee

  	
  16

  
						

 

i

 

	
   

  	
  Page

  
	
   

  	
  SECTION 3.12.

  	
  No Other Business

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.13.

  	
  No Borrowing

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.14.

  	
  Servicer’s Obligations

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.15.

  	
  Guarantees, Loans,
  Advances and Other Liabilities

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.16.

  	
  Capital Expenditures

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.17.

  	
  Removal of Administrator

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.18.

  	
  Restricted Payments

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.19.

  	
  Notice of Events of
  Default

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.20.

  	
  Further Instruments and
  Acts

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.21.

  	
  Perfection
  Representation

  	
  18

  
	
   

  	
   

  
	
  ARTICLE IV

  	
  SATISFACTION
  AND DISCHARGE

  	
  18

  
	
   

  	
   

  
	
   

  	
  SECTION 4.1.

  	
  Satisfaction and
  Discharge of Indenture

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 4.2.

  	
  Application of Trust
  Money

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 4.3.

  	
  Repayment of Moneys
  Held by Paying Agent

  	
  19

  
	
   

  	
   

  
	
  ARTICLE V

  	
  REMEDIES

  	
  19

  
	
   

  	
   

  
	
   

  	
  SECTION 5.1.

  	
  Events of Default

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.2.

  	
  Acceleration of
  Maturity; Rescission and Annulment

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.3.

  	
  Collection of
  Indebtedness and Suits for Enforcement by Indenture Trustee

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.4.

  	
  Remedies; Priorities

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.5.

  	
  Optional Preservation
  of the Receivables

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.6.

  	
  Limitation of Suits

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.7.

  	
  Unconditional Rights of
  Noteholders To Receive Principal and Interest

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.8.

  	
  Restoration of Rights
  and Remedies

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.9.

  	
  Rights and Remedies
  Cumulative

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.10.

  	
  Delay or Omission Not a
  Waiver

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.11.

  	
  Control by Noteholders

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.12.

  	
  Waiver of Past Defaults

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.13.

  	
  Undertaking for Costs

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.14.

  	
  Waiver of Stay or
  Extension Laws

  	
  27

  
						

 

ii

 

	
   

  	
  Page

  
	
   

  	
  SECTION 5.15.

  	
  Action on Notes

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.16.

  	
  Performance and
  Enforcement of Certain Obligations

  	
  28

  
	
   

  	
   

  
	
  ARTICLE VI

  	
  THE
  INDENTURE TRUSTEE

  	
  29

  
	
   

  	
   

  
	
   

  	
  SECTION 6.1.

  	
  Duties of the Indenture
  Trustee

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.2.

  	
  Rights of Indenture
  Trustee

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.3.

  	
  Individual Rights of
  the Indenture Trustee

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.4.

  	
  Indenture Trustee’s
  Disclaimer

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.5.

  	
  Notice of Defaults

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.6.

  	
  Reports by Indenture Trustee
  to the Holders

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.7.

  	
  Compensation and
  Indemnity

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.8.

  	
  Replacement of the
  Indenture Trustee

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.9.

  	
  Successor Indenture
  Trustee by Merger

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.10.

  	
  Appointment of
  Co-Trustee or Separate Trustee

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.11.

  	
  Eligibility;
  Disqualification

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.12.

  	
  Preferential Collection
  of Claims Against the Issuer

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.13.

  	
  Representations and
  Warranties

  	
  36

  
	
   

  	
   

  
	
  ARTICLE VII

  	
  NOTEHOLDERS’
  LISTS AND REPORTS

  	
  36

  
	
   

  	
   

  
	
   

  	
  SECTION 7.1.

  	
  Issuer To Furnish
  Indenture Trustee Names and Addresses of Noteholders

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.2.

  	
  Preservation of
  Information; Communications to Noteholders

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.3.

  	
  Reports by Issuer

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.4.

  	
  Required Filings

  	
  37

  
	
   

  	
   

  
	
  ARTICLE VIII

  	
  ACCOUNTS,
  DISBURSEMENTS AND RELEASES

  	
  38

  
	
   

  	
   

  
	
   

  	
  SECTION 8.1.

  	
  Collection of Money

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.2.

  	
  Trust Accounts

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.3.

  	
  General Provisions
  Regarding Accounts

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.4.

  	
  Release of Trust Estate

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.5.

  	
  Opinion of Counsel

  	
  41

  
	
   

  	
   

  
	
  ARTICLE IX

  	
  SUPPLEMENTAL
  INDENTURES

  	
  42

  
	
   

  	
   

  
	
   

  	
  SECTION 9.1.

  	
  Supplemental Indentures
  Without Consent of Noteholders

  	
  42

  
						

 

iii

 

	
   

  	
  Page

  
	
   

  	
  SECTION 9.2.

  	
  Supplemental Indentures
  With Consent of Noteholders

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.3.

  	
  Execution of
  Supplemental Indentures

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.4.

  	
  Effect of Supplemental
  Indenture

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.5.

  	
  Conformity with Trust
  Indenture Act

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.6.

  	
  Reference in Notes to
  Supplemental Indentures

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.7.

  	
  Amendment without
  Consent

  	
  45

  
	
   

  	
   

  
	
  ARTICLE X

  	
  REDEMPTION
  OF NOTES

  	
  45

  
	
   

  	
   

  
	
   

  	
  SECTION 10.1.

  	
  Redemption

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 10.2.

  	
  Form of Redemption
  Notice

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 10.3.

  	
  Notes Payable on
  Redemption Date

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
  MISCELLANEOUS

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.1.

  	
  Compliance Certificates
  and Opinions, etc.

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.2.

  	
  Form of Documents
  Delivered to Indenture Trustee

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.3.

  	
  Acts of Noteholders

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.4.

  	
  Notices, etc., to the
  Indenture Trustee, Issuer and Rating Agencies

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.5.

  	
  Notices to Noteholders;
  Waiver

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.6.

  	
  Alternate Payment and
  Notice Provisions

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.7.

  	
  Conflict with Trust
  Indenture Act

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.8.

  	
  Effect of Headings and
  Table of Contents

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.9.

  	
  Successors and Assigns

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.10.

  	
  Severability

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.11.

  	
  Benefits of Indenture

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.12.

  	
  Legal Holidays

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.13.

  	
  Governing Law

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.14.

  	
  Counterparts

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.15.

  	
  Recording of Indenture

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.16.

  	
  Trust Obligation

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.17.

  	
  No Petition

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.18.

  	
  Inspection

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.19.

  	
  Subordination

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.20.

  	
  Information Requests.

  	
  54

  
						

 

iv

 

EXHIBITS

EXHIBIT A-1 Form of A-1
Notes

EXHIBIT A-2 Form of A-2
Notes

EXHIBIT A-3 Form of A-3
Notes

EXHIBIT A-4a Form of A-4a
Notes

EXHIBIT A-4b Form of A-4b
Notes

EXHIBIT A-5 Form of Class B
Notes

EXHIBIT A-6 Form of Class C
Notes

EXHIBIT B         Form of Section 3.9 Officer’s
Certificates

SCHEDULES

SCHEDULE P                Perfection Representations &
Warranties

 

v

 

INDENTURE dated as of [Month
Day], 200X between CNH EQUIPMENT TRUST 200X-Y, a Delaware statutory trust (the “Issuer”), and [JPMORGAN
CHASE BANK, N.A.], a national banking association (“JPMorgan”), as trustee and
not in its individual capacity (the “Indenture Trustee”).

 

Each party agrees as follows for the benefit of the
other party, for the benefit of the Counterparty, and for the equal and ratable
benefit of the Holders of the Issuer’s        %
Class A-1 Asset Backed Notes (each an “A-1 Note”),        %
Class A-2 Asset Backed Notes (each an “A-2 Note”),        %
Class A-3 Asset Backed Notes (each an “A-3 Note”), Floating Rate Class A-4a
Asset Backed Notes (each an “A-4a Note”),        % Class A-4b
Asset Backed Notes (each an “A-4b Note”), the        %
Class B Asset Backed Notes (each a “Class B Note”)  and        %
Class C Asset Backed Notes (each a “Class C Note”; and together
with the A-1 Notes, the A-2 Notes, the A-3 Notes, the A-4a Notes, the A-4b
Notes and the Class B Notes, the “Notes”).

 

GRANTING CLAUSE

 

The Issuer hereby Grants to JPMorgan at the Closing
Date, as Indenture Trustee for the benefit of the Holders of the Notes and the
Counterparty, all of the Issuer’s right, title and interest in, to and under
the following, whether now existing or hereafter arising or acquired
(collectively, the “Collateral”):

 

(a)  the Receivables, including all documents
constituting chattel paper included therewith, and all obligations of the
Obligors thereunder, including all moneys paid thereunder on or after the
Initial Cutoff Date or the applicable Subsequent Cutoff Date;

 

(b)  the security interests in the Financed
Equipment granted by Obligors pursuant to the Receivables and any other
interest of the Issuer in the Financed Equipment;

 

(c)  any proceeds with respect to the
Receivables from claims on insurance policies covering Financed Equipment or
Obligors;

 

(d)  the Liquidity Receivables Purchase
Agreements (only with respect to CNHCA Owned Contracts and NH Owned Contracts
included in the Receivables) and the CNHCA Purchase Agreement, including the
right of the Issuer to cause CNHCA or NH Credit, as applicable, to repurchase
Receivables from the Seller under the circumstances described therein;

 

(e)  any proceeds from recourse to Dealers
with respect to the Receivables other than any interest in the Dealers’ reserve
accounts maintained with CNHCA or NH Credit;

 

(f)  any Financed Equipment that shall have
secured a Receivable and that shall have been acquired by or on behalf of the
Trust;

 

(g)  all funds on deposit from time to time in
the Trust Accounts, including the Spread Account Initial Deposit, any Principal
Supplement Account Deposit, the Negative Carry Account Initial Deposit and the
Pre-Funded Amount, and in all investments and proceeds thereof (including all
income thereon);

 

 

(h)  the Sale and Servicing Agreement
(including all rights of the Seller under the Liquidity Receivables Purchase
Agreements and the CNHCA Purchase Agreement assigned to the Issuer pursuant to
the Sale and Servicing Agreement);

 

(i)  all rights of the Issuer under the Interest
Rate Swap Agreement;

 

(j)  all present and future claims, demands,
causes and choses in action in respect of any or all of the foregoing and all
payments on or under and all proceeds of every kind and nature whatsoever in
respect of any or all of the foregoing, including all proceeds of the
conversion, voluntary or involuntary, into cash or other liquid property, all
cash proceeds, accounts, accounts receivable, notes, drafts, acceptances,
chattel paper, checks, deposit accounts, insurance proceeds, condemnation
awards, rights to payment of any and every kind and other forms of obligations
and receivables, instruments and other property that at any time constitute all
or part of or are included in the proceeds of any and all of the foregoing; and

 

(k)  any True Lease Equipment that is subject
to any Receivable.

 

The foregoing Grant is made in trust to secure (x)
first, the payment of principal of and interest on, and any other amounts owing
in respect of (including the amounts owed in connection with the Interest Rate
Swap Agreement), the Class A Notes, equally and ratably without prejudice,
priority or distinction, (y) second, the payment of principal of and interest
on, and any other amounts owing in respect of, the Class B Notes, equally
and ratably without prejudice, priority or distinction, and (z) third, the
payment of principal of and interest on, and any other amounts owing in respect
of, the Class C Notes, equally and ratably without prejudice, priority or
distinction, and to secure compliance with this Indenture.

 

JPMorgan, as Indenture Trustee on behalf of the
Noteholders and the Counterparty, (1) acknowledges such Grant, and (2) accepts
the trusts under this Indenture in accordance with this Indenture and agrees to
perform its duties required in this Indenture and the other Basic Documents to
which it is a party in accordance with their terms.

 

ARTICLE I

Definitions
and Incorporation by Reference

 

SECTION 1.1.  Definitions.  Capitalized terms used but not otherwise
defined herein are defined in Appendix A hereto.

 

SECTION 1.2.  Incorporation
by Reference of Trust Indenture Act.  Whenever this Indenture refers to a provision
of the TIA, the provision is incorporated by reference in and made a part of
this Indenture. The following terms, where used in the TIA, shall have the following
meanings for the purposes hereof:

 

“Commission” means the Securities and Exchange
Commission.

 

“indenture securities” means the Notes.

 

2

 

“indenture security holder” means a Noteholder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means
the Indenture Trustee.

 

“obligor” on the indenture securities means the Issuer
and any other obligor on the indenture securities.

 

All other TIA terms used in this Indenture that are
defined by the TIA, defined by TIA reference to another statute or defined by
Commission rule have the meaning assigned to them by such definitions.

 

SECTION 1.3.  Rules of
Construction.  Unless the
context otherwise requires: (i) a term has the meaning assigned to it; (ii) an
accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles as in effect on the
date hereof; (iii) “or” is not exclusive; (iv) “including” means “including,
without limitation”; and (v) words in the singular include the plural and
words in the plural include the singular.

 

ARTICLE II

The Notes

 

SECTION 2.1.  Form.  The A-1 Notes, A-2 Notes, A-3 Notes, A-4a
Notes, A-4b Notes, Class B Notes and Class C Notes, together with the
Indenture Trustee’s certificate of authentication, shall be in substantially
the forms set forth in Exhibits A-1, A-2, A-3, A-4a, A-4b, A-5 and  A-6
respectively, with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture, and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon, as may, consistently herewith, be determined by
the officers executing such Notes, as evidenced by their execution of the
Notes. Any portion of the text of any Note may be set forth on the reverse
thereof, with an appropriate reference thereto on the face of the Note.

 

The Definitive Notes shall be typewritten, printed,
lithographed or engraved or produced by any combination of these methods (with
or without steel engraved borders), all as determined by the officers executing
such Notes, as evidenced by their execution of such Notes.

 

Each Note shall be dated the date of its authentication.
The terms of the Notes set forth in Exhibits A-1, A-2, A-3, A-4a, A-4b, A-5 and
A-6 are
part of the terms of this Indenture.

 

SECTION 2.2.  Execution,
Authentication and Delivery. 
The Notes shall be executed on behalf of the Issuer by any of its
Authorized Officers. The signature of any such Authorized Officer on the Notes
may be manual or facsimile.

 

Notes bearing the manual or facsimile signature of
individuals who were at the time of signature Authorized Officers of the Issuer
shall bind the Issuer, notwithstanding that such

 

3

 

individuals or any of
them have ceased to hold such offices prior to the authentication and delivery
of such Notes or did not hold such offices at the date of such Notes.

 

The Indenture Trustee shall upon Issuer Order
authenticate and deliver A-1 Notes, A-2 Notes, A-3 Notes, A-4a Notes, A-4b
Notes, Class B Notes and Class C Notes for original issue in an
aggregate principal amount of
$          ,
$          ,
$          , $          ,
$          , $          ,
and $          ,
respectively.  The Outstanding Amount of
A-1 Notes, A-2 Notes, A-3 Notes, A-4a Notes, A-4b Notes, Class B Notes and
Class C Notes at any time may not exceed such respective amounts except as
provided in Section 2.5.

 

Each Note shall be dated the date of its
authentication. The Notes shall be issuable as registered Notes in the minimum
denomination of $1,000 and in greater whole-dollar denominations in excess
thereof.

 

No Note shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose, unless there appears on
such Note a certificate of authentication substantially in the form provided
for herein executed by the Indenture Trustee by the manual signature of one of
its authorized signatories, and such certificate of authentication shall be
conclusive evidence, and the only evidence, that such Note has been duly
authenticated and delivered hereunder.

 

SECTION 2.3.  Temporary
Notes.  Pending the
preparation of Definitive Notes, the Issuer may execute, and upon receipt of an
Issuer Order, the Indenture Trustee shall authenticate and deliver, temporary
Notes that are printed, lithographed, typewritten, mimeographed or otherwise
produced, of the tenor of the Definitive Notes in lieu of which they are issued
and with such variations not inconsistent with this Indenture as the officers
executing such Notes may determine, as evidenced by their execution of such
Notes.

 

If temporary Notes are issued, the Issuer will cause
Definitive Notes to be prepared without unreasonable delay.  After the preparation of Definitive Notes,
the temporary Notes shall be exchangeable for Definitive Notes upon surrender
of the temporary Notes at the office or agency of the Issuer to be maintained
as provided in Section 3.2,
without charge to the Holder. Upon surrender for cancellation of any one or
more temporary Notes, the Issuer shall execute and the Indenture Trustee shall
authenticate and deliver in exchange therefor a like principal amount of Definitive
Notes of authorized denominations. Until so exchanged, the temporary Notes
shall in all respects be entitled to the same benefits under this Indenture as
if they were Definitive Notes.

 

SECTION 2.4.  Registration;
Registration of Transfer and Exchange.  The Issuer shall cause to be kept a register
(the “Note
Register”)
in which, subject to such reasonable regulations as it may prescribe, the
Issuer shall provide for the registration of Notes and the registration of
transfers of Notes. The Indenture Trustee shall be the “Note Registrar” for the purpose of
registering Notes and transfers of Notes as herein provided. Upon any
resignation of any Note Registrar, the Issuer shall promptly appoint a
successor or, if it elects not to make such an appointment, assume the duties
of the Note Registrar.

 

If a Person other than the Indenture Trustee is
appointed by the Issuer as the Note Registrar, the Issuer will give the
Indenture Trustee prompt written notice of the appointment of

 

4

 

such Note Registrar and
of the location, and any change in the location, of the Note Register, and the
Indenture Trustee shall have the right to inspect the Note Register at all
reasonable times, to obtain copies thereof and to rely upon a certificate
executed on behalf of the Note Registrar by an Executive Officer thereof as to
the names and addresses of the Holders of the Notes and the principal amounts
and number of such Notes.

 

Upon surrender for registration of transfer of any
Note at the office or agency of the Issuer to be maintained as provided in Section 3.2,
if the requirements of Section 8-401(a) of the UCC are met, the
Issuer shall execute, the Indenture Trustee shall authenticate and the
Noteholder shall obtain from the Indenture Trustee, in the name of the
designated transferee or transferees, one or more new Notes in any authorized
denominations of a like aggregate principal amount.

 

At the option of the Holder, Notes may be exchanged
for other new Notes of the same Class in any authorized denominations of a
like aggregate principal amount, upon surrender of the Notes to be exchanged at
such office or agency. Whenever any Notes are so surrendered for exchange, if
the requirements of Section 8-401(a) of the UCC are met, the Issuer
shall execute, the Indenture Trustee shall authenticate and the Noteholder
shall obtain from the Indenture Trustee, the Notes that the Noteholder making
the exchange is entitled to receive.

 

By its acquisition of a Note or any interest therein,
each purchaser or transferee shall be deemed to represent and warrant that
either (a) it is not an “employee benefit plan” within the meaning of Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), that is subject to Title I of ERISA, a “plan” as
defined in Section 4975 of the Internal Revenue Code of 1986, as amended
(the “Code”), an entity deemed to hold “plan
assets” of any of the foregoing or a “governmental plan” as defined in Section 3(32)
of ERISA that is subject to any law substantially similar to ERISA or Section 4975
of the Code or (b) the acquisition and holding of the Note or any interest
therein will not result in a non-exempt prohibited transaction under Section 406
of ERISA, Section 4975 of the Code or any substantially similar applicable
law.

 

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

 

Every Note presented or surrendered for registration
of transfer or exchange shall be duly endorsed by, or be accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Holder thereof or such Holder’s attorney duly authorized
in writing, with such signature guaranteed by an “eligible guarantor
institution” meeting the requirements of the Note Registrar, which requirements
include membership or participation in the Securities Transfer Agent’s
Medallion Program (“STAMP”)
or such other “signature guarantee program” as may be determined by the Note
Registrar in addition to, or in substitution for, STAMP, all in accordance with
the Exchange Act.

 

No service charge shall be made to a Holder for any
registration of transfer or exchange of Notes, but the Issuer may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any registration of transfer or

 

5

 

exchange of Notes, other than exchanges pursuant to Sections 2.3 or
9.6 not
involving any transfer.

 

SECTION 2.5.  Mutilated,
Destroyed, Lost or Stolen Notes. 
If: (i) any mutilated Note is surrendered to the Indenture Trustee,
or the Indenture Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Note, and (ii) there is delivered to the
Indenture Trustee such security or indemnity as may be required by the
Indenture Trustee and the Issuer to hold the Indenture Trustee and the Issuer,
respectively, harmless, then, in the absence of notice to the Issuer, the Note
Registrar or the Indenture Trustee that such Note has been acquired by a bona
fide purchaser, and provided that the requirements of Section 8-405 of the
UCC are met, the Issuer shall execute, and upon its request the Indenture
Trustee shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Note, a replacement Note of the same
Class; provided,
however, that if any such destroyed, lost or stolen Note, but not a
mutilated Note, shall have become, or within seven days shall be, due and
payable, or shall have been called for redemption, instead of issuing a
replacement Note, the Issuer may pay such destroyed, lost or stolen Note when
so due or payable or upon the Redemption Date without surrender thereof. If,
after the delivery of such replacement Note (or payment of a destroyed, lost or
stolen Note pursuant to the proviso to the preceding sentence), a bona fide
purchaser of the original Note in lieu of which such replacement Note was
issued presents for payment such original Note, the Issuer and the Indenture
Trustee shall be entitled to recover such replacement Note (or such payment)
from the Person to whom it was delivered or any Person taking such replacement
Note from such Person to whom such replacement Note was delivered (or payment
made) or any assignee of such Person, except a bona fide purchaser, and shall
be entitled to recover upon the security or indemnity provided therefor to the
extent of any loss, damage, cost or expense incurred by the Issuer or the
Indenture Trustee in connection therewith.

 

Upon the issuance of any replacement Note under this
Section, the Issuer may require the payment by the Holder of such Note of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other reasonable expenses (including the fees and
expenses of the Indenture Trustee) connected therewith.

 

Every replacement Note issued pursuant to this Section in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute
an original additional contractual obligation of the Issuer, whether or not the
mutilated, destroyed, lost or stolen Note shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

 

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

 

SECTION 2.6.  Persons
Deemed Owner.  Prior to
due presentment for registration of transfer of any Note, the Issuer, the
Indenture Trustee and any agent of the Issuer or the Indenture Trustee may
treat the Person in whose name any Note is registered (as of the day of
determination) as the owner of such Note for the purpose of receiving payments
of principal and interest, if any, on such Note and for all other purposes
whatsoever, whether or not such Note be

 

6

 

overdue, and neither the Issuer, the Indenture Trustee nor any agent of
the Issuer or the Indenture Trustee shall be affected by notice to the
contrary.

 

SECTION 2.7.  Payment
of Principal and Interest; Defaulted Interest.  (a)  
The A-1 Notes, A-2 Notes, A-3 Notes, A-4a Notes, A-4b Notes, Class B
Notes and Class C Notes shall accrue interest at the A-1 Note Rate, the A-2
Note Rate, the A-3 Note Rate, the A-4a Note Rate, the A-4b Note Rate, the Class B
Note Rate and the Class C Note Rate, respectively, and such interest shall
be payable on each Payment Date, subject to Section 3.1.  Any installment of interest or principal, if
any, payable on any Note that is punctually paid or duly provided for by the
Issuer on the applicable Payment Date shall be paid to the Person in whose name
such Note (or one or more Predecessor Notes) is registered on the Record Date
by check mailed first-class, postage prepaid, to such Person’s address as it
appears on the Note Register on such Record Date. However, unless Definitive
Notes have been issued, with respect to Notes registered on the Record Date in
the name of the nominee of the Clearing Agency (initially, such nominee to be
Cede & Co.), payment will be made by wire transfer in immediately
available funds to the account designated by such nominee. Notwithstanding the
above, the final installment of principal payable with respect to such Note
(and except for the Redemption Price for any Note called for redemption
pursuant to Section 10.1(a))
shall be payable as provided in clause (b)(ii).  The
funds represented by any such checks returned undelivered shall be held in
accordance with Section 3.3.

 

(b) 
(i)   The principal of each Note
shall be payable in installments on each Payment Date as provided in this
Indenture, and except as provided below each such installment shall be due and
payable only to the extent that there are funds available to make the payment
in accordance with the Basic Documents. 
Notwithstanding the foregoing: (A) the entire Outstanding Amount of
each Class of Notes shall be due and payable on the related Class Final
Scheduled Maturity Date, and (B) the entire Outstanding Amount of all
Classes of Notes shall be due and payable, ratably to all Noteholders, on any
date on which an Event of Default shall have occurred and be continuing if the
Indenture Trustee or the Holders of Notes representing not less than a majority
of the Outstanding Amount of the Notes have declared the Notes to be
immediately due and payable in the manner provided in Section 5.2.  All principal payments on each Class of
Notes shall be made pro rata to the Noteholders of that Class.

 

(ii)  The Indenture
Trustee shall notify the Person in whose name a Note is registered at the close
of business on the Record Date preceding the Payment Date on which the Issuer
expects that the final installment of principal of and interest on such Note
will be paid. Such notice shall be mailed no later than five Business Days
prior to such final Payment Date and shall specify that such final installment
will be payable only upon presentation and surrender of such Note and shall
specify the place where such Note may be presented and surrendered for payment
of such installment. Notices in connection with redemptions of Notes shall be
mailed to Noteholders as provided in Section 10.2.

 

(c) 
If the Issuer defaults in a payment of interest on the Notes, the Issuer shall
pay, in any lawful manner, defaulted interest (plus interest on such defaulted
interest to the extent lawful) at the applicable interest rate from the Payment
Date for which such payment is in default. The Issuer may pay such defaulted
interest to the Persons who are Noteholders on a subsequent special record
date, which date shall be at least five Business Days prior to the special
payment

 

7

 

date. The Issuer shall fix or cause to be fixed any such special record
date and special payment date, and, at least 15 days before any such special
record date, shall mail to each Noteholder a notice that states the special
record date, the special payment date and the amount of defaulted interest to be
paid.

 

SECTION 2.8.  Cancellation.  All Notes surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Indenture Trustee, be delivered to the Indenture Trustee
and shall be promptly canceled by the Indenture Trustee. The Issuer may at any
time deliver to the Indenture Trustee for cancellation any Notes previously
authenticated and delivered hereunder that the Issuer may have acquired in any
manner whatsoever, and all Notes so delivered shall be promptly canceled by the
Indenture Trustee. No Notes shall be authenticated in lieu of or in exchange
for any Notes canceled as provided in this Section except as expressly
permitted by this Indenture. All canceled Notes may be held or disposed of by
the Indenture Trustee in accordance with its standard retention or disposal
policy as in effect at the time unless the Issuer shall direct by an Issuer
Order that they be returned to it; provided, that such Issuer Order
is timely and the Notes have not been previously disposed of by the Indenture
Trustee.

 

SECTION 2.9.  Release
of Collateral.  Subject to
Sections 8.4
and 11.1 and
the Basic Documents, the Indenture Trustee shall release property from the Lien
of this Indenture only upon receipt of an Issuer Request accompanied by an
Officer’s Certificate, an Opinion of Counsel and Independent Certificates in
accordance with TIA §§314(c) and 314(d)(l), or an Opinion of Counsel in
lieu of such Independent Certificates to the effect that the TIA does not
require any such Independent Certificates.

 

SECTION 2.10.  Book-Entry
Notes.  The Notes, upon
original issuance, will be issued in the form of typewritten Notes representing
the Book-Entry Notes, to be delivered to The Depository Trust Company (the
initial Clearing Agency), or its custodian, by, or on behalf of, the Issuer.
Such Notes shall initially be registered on the Note Register in the name of
Cede & Co., the nominee of the initial Clearing Agency, and no Note
Owner of such Note will receive a Definitive Note representing such Note Owner’s
interest in such Note, except as provided in Section 2.12.  Unless and until definitive, fully
registered Notes (the “Definitive Notes”) representing Notes have been
issued to Note Owners:

 

(i)  this Section shall
be in full force and effect;

 

(ii)  the Note
Registrar and the Indenture Trustee may deal with the Clearing Agency for all
purposes (including the payment of principal of and interest on the Notes) as
the authorized representative of the Note Owners;

 

(iii)  to the extent
that this Section conflicts with any other provisions of this Indenture,
this Section shall control;

 

(iv)  the rights of
Note Owners shall be exercised only through the Clearing Agency and shall be
limited to those established by law and agreements between such Note Owners and
the Clearing Agency and/or the Clearing Agency Participants pursuant to the
Note Depository Agreement. Unless and until Definitive Notes are issued, the

 

8

 

Clearing Agency will make book-entry transfers among
the Clearing Agency Participants and receive and transmit payments of principal
of and interest on the Notes to such Clearing Agency Participants; and

 

(v)  whenever this
Indenture requires or permits actions to be taken based upon instructions or
directions of Holders of Notes evidencing a specified percentage of the
Outstanding Amount of the Notes (or a Class of Notes), the Clearing Agency
shall be deemed to represent such percentage only to the extent that it has
received instructions to such effect from Note Owners and/or Clearing Agency
Participants owning or representing, respectively, such required percentage of
the beneficial interest in the Notes (or Class of Notes) and has delivered
such instructions to the Indenture Trustee.

 

SECTION 2.11.  Notices
to Clearing Agency. 
Whenever a notice or other communication to the Noteholders is required
under this Indenture, unless and until Definitive Notes have been issued to
Note Owners, the Indenture Trustee shall give all such notices and
communications to the Clearing Agency.

 

SECTION 2.12.  Definitive
Notes.  Notes initially
cleared through a clearing agency may be issued in definitive, fully registered
certificated form to Noteholders if requested by the DTC participants to whom
the Notes are credited and in accordance with DTC’s rules and procedures.
Upon any surrender to the Indenture Trustee of the typewritten Notes
representing the Book-Entry Notes by the Clearing Agency, accompanied by
registration instructions, the Issuer shall execute, and the Indenture Trustee
shall authenticate, the Definitive Notes in accordance with the instructions of
the Clearing Agency. None of the Issuer, the Note Registrar or the Indenture
Trustee shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be fully protected in relying on, such
instructions. Upon the issuance of Definitive Notes, the Indenture Trustee
shall recognize the Holders of the Definitive Notes as Noteholders.

 

SECTION 2.13.
 Tax
Treatment.  It is the
intent of the Seller, the Servicer, the Noteholders and the Note Owners that,
for purposes of federal and State income tax and any other tax measured in
whole or in part by income, until the Certificates are held by other than the
Seller, the Trust be disregarded as an entity separate from the Seller and the
Notes be treated as debt of the Seller. 
At such time that the Certificates are held by more than one Person, it
is the intent of the Seller, the Servicer, the Noteholders and the Note Owners
that, for such tax purposes, the Trust be treated as a partnership and the
Notes be treated as debt of the Trust. 
Each Noteholder or Note Owner, by acceptance of a Note, or, in the case
of a Note Owner, a beneficial interest in a Note, agrees to treat, and to take
no action inconsistent with the treatment of, the Notes for such tax purposes
as provided in this Section 2.13.

 

ARTICLE III

Covenants

 

SECTION 3.1.  Payment
of Principal and Interest. 
The Issuer will duly and punctually pay the principal and interest, if
any, on the Notes in accordance with the terms of the Notes and this
Indenture.  Without limiting the
foregoing, subject to Sections 8.2(c) and (e), the Issuer will cause to
be distributed to Holders of the Notes all amounts on deposit in the Note
Distribution

 

9

 

Account on a Payment Date deposited therein for the benefit of the
Notes pursuant to the Sale and Servicing Agreement.  Amounts properly withheld under the Code or
any applicable State law by any Person from a payment to any Noteholder of
interest and/or principal shall be considered as having been paid by the Issuer
to such Noteholder for all purposes of this Indenture.

 

SECTION 3.2.  Maintenance
of Office or Agency.  The Issuer
will maintain in the Borough of Manhattan, The City of New York, an office or
agency where Notes may be surrendered for registration of transfer or exchange,
and where notices and demands to or upon the Issuer in respect of the Notes and
this Indenture may be served.  The Issuer
hereby initially appoints the Indenture Trustee to serve as its agent for the
foregoing purposes.  The Issuer will give
prompt written notice to the Indenture Trustee and the Counterparty of the
location, and of any change in the location, of any such office or agency.  If at any time the Issuer shall fail to
maintain any such office or agency or shall fail to furnish the Indenture
Trustee with the address thereof, such surrenders, notices and demands may be
made or served at the Corporate Trust Office, and the Issuer hereby appoints
the Indenture Trustee as its agent to receive all such surrenders, notices and
demands.

 

SECTION 3.3.  Money
for Payments To Be Held in Trust.  As provided in Sections 8.2(a) and (b), all
payments of amounts due and payable with respect to any Notes that are to be
made from amounts withdrawn from the Collection Account and the Note
Distribution Account pursuant to Section 8.2(c) or Section 8.2(e), as applicable,  shall
be made on behalf of the Issuer by the Indenture Trustee or by another Paying
Agent, and no amounts so withdrawn from the Collection Account and the Note
Distribution Account for payments of Notes shall be paid over to the Issuer
except as provided in this Section.

 

One Business Day prior to each Payment Date and
Redemption Date, the Issuer shall deposit or cause to be deposited in the Note
Distribution Account an aggregate sum sufficient to pay the amounts then
becoming due under the Notes, such sum to be held in trust for the benefit of
the Persons entitled thereto and (unless the Paying Agent is the Indenture
Trustee) shall promptly notify the Indenture Trustee of its action or failure
so to act.

 

Any Paying Agent shall be appointed by Issuer Order
with written notice thereof to the Indenture Trustee.  Any Paying Agent appointed by the Issuer
shall be a Person who would be eligible to be Indenture Trustee hereunder as
provided in Section 6.11.

 

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

 

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

 

10

 

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

 

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

 

(iv)  immediately
resign as a Paying Agent and forthwith pay to the Indenture Trustee all sums
held by it in trust for the payment of Notes if at any time it ceases to meet
the standards required to be met by a Paying Agent; and

 

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

 

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

 

Subject to applicable laws with respect to escheat of
funds, any money held by the Indenture Trustee or any Paying Agent in trust for
the payment of any amount due with respect to any Note and remaining unclaimed
for two years after such amount has become due and payable shall be discharged
from such trust and be paid to the Issuer on Issuer Order; and the Holder of
such Note shall thereafter, as an unsecured general creditor, look only to the
Issuer for payment thereof (but only to the extent of the amounts so paid to
the Issuer), and all liability of the Indenture Trustee or such Paying Agent
with respect to such trust money shall thereupon cease; provided, however,
that the Indenture Trustee or such Paying Agent, before being required to make
any such repayment, shall at the expense and direction of the Issuer cause to
be published once, in a newspaper published in the English language,
customarily published on each Business Day and of general circulation in the
City of New York, notice that such money remains unclaimed and that, after a
date specified therein, which shall not be less than 30 days from the date of
such publication, any unclaimed balance of such money then remaining will be
repaid to the Issuer. The Indenture Trustee shall also adopt and employ, at the
expense of the Issuer, any other reasonable means of notification of such
repayment (including mailing notice of such repayment to Holders whose Notes
have been called but have not been surrendered for redemption or whose right to
or interest in moneys due and payable but not claimed is determinable from the
records of the Indenture Trustee or of any Paying Agent, at the last address of
record for each such Holder).

 

SECTION 3.4.  Existence.  The Issuer will keep in full effect its
existence, rights and franchises as a statutory trust under the laws of the
jurisdiction of its organization and will obtain and preserve its qualification
to do business in each jurisdiction in which such qualification is or

 

11

 

shall be necessary to protect the validity and enforceability of this
Indenture, the Notes, the Collateral and each other instrument or agreement
included in the Trust Estate.

 

SECTION 3.5.  Protection
of the Trust Estate.  The
Issuer will from time to time execute and deliver all such supplements and
amendments hereto and all such financing statements, continuation statements,
instruments of further assurance and other instruments, and will take such
other action necessary or advisable to:

 

(i)  maintain or
preserve the Lien and security interest (and the priority thereof) of this
Indenture or carry out more effectively the purposes hereof;

 

(ii)  perfect,
publish notice of or protect the validity of any Grant made or to be made by
this Indenture;

 

(iii)  enforce any
of the Collateral; or

 

(iv)  preserve and
defend title to the Trust Estate and the rights of the Indenture Trustee and
the Noteholders in such Trust Estate against the claims of all Persons.

 

The Issuer hereby designates the Indenture Trustee as
its agent and attorney-in-fact to execute any financing statement, continuation
statement, instrument of further assurance or other instrument required to be
executed to accomplish the foregoing.

 

SECTION 3.6.  Opinions
as to the Trust Estate.  (a)   On
the Closing Date, the Issuer shall furnish to the Indenture Trustee an Opinion
of Counsel either stating that, in the opinion of such counsel, such action has
been taken or will be taken with respect to the recording and filing of this
Indenture, any indentures supplemental hereto and any other requisite
documents, and with respect to the execution and filing of any financing
statements and continuation statements, as are necessary to perfect and make
effective the Lien and security interest created by this Indenture and reciting
the details of such action, or stating that, in the opinion of such counsel, no
such action is necessary to make such Lien and security interest effective.

 

(b) 
On or before April 30 in each calendar year commencing in the calendar
year 200X the Issuer shall furnish to the Indenture Trustee an Opinion of
Counsel either stating that, in the opinion of such counsel, such action has
been taken with respect to the recording, filing, re-recording and refiling of
this Indenture, any indentures supplemental hereto and any other requisite documents,
and with respect to the execution and filing of any financing statements and
continuation statements, as is necessary to maintain the Lien and security
interest of this Indenture and reciting the details of such action, or stating
that in the opinion of such counsel no such action is necessary to maintain
such Lien and security interest. Such Opinion of Counsel shall also describe
the recording, filing, re-recording and refiling of this Indenture, any
indentures supplemental hereto and any other requisite documents, and the
execution and filing of any financing statements, amendments to financing
statements and continuation statements, that will, in the opinion of such
counsel, be required to maintain the Lien and security interest of this
Indenture until April 30 in the following calendar year.

 

SECTION 3.7.  Performance
of Obligations; Servicing of Receivables.  (a)   The Issuer will not take
any action and will use its best efforts not to permit any action to be taken
by others

 

12

 

that would release any Person from any material covenants or
obligations under any instrument or agreement included in the Trust Estate or
that would result in the amendment, hypothecation, subordination, termination
or discharge of, or impair the validity or effectiveness of, any such
instrument or agreement, except as expressly provided in this Indenture, the Sale
and Servicing Agreement or such other instrument or agreement.

 

(b) 
The Issuer may contract with other Persons to assist it in performing its
duties under this Indenture, and any performance of such duties by a Person
identified to the Indenture Trustee in an Officer’s Certificate of the Issuer
shall be deemed to be action taken by the Issuer. Initially, the Issuer has
contracted with the Servicer and the Administrator to assist the Issuer in
performing its duties under this Indenture.

 

(c) 
The Issuer will punctually perform and observe all of its obligations and
agreements contained in this Indenture, the other Basic Documents and in the
instruments and agreements included in the Trust Estate, including filing or
causing to be filed all UCC financing statements and continuation statements
required to be filed by this Indenture and the Sale and Servicing Agreement in
accordance with and within the time periods provided for herein and therein.
Except as otherwise expressly provided therein, the Issuer shall not waive,
amend, modify, supplement or terminate any Basic Document or any provision
thereof without the consent of the Indenture Trustee or the Holders of at least
a majority of the Outstanding Amount of the Notes.

 

(d) 
If the Issuer shall have knowledge of the occurrence of a Servicer Default, the
Issuer shall promptly notify the Indenture Trustee, the Counterparty and the
Rating Agencies thereof, and shall specify in such notice the action, if any,
the Issuer is taking with respect to such default. If a Servicer Default shall
arise from the failure of the Servicer to perform any of its duties or
obligations under the Sale and Servicing Agreement with respect to the
Receivables, the Issuer shall take all reasonable steps available to it to
remedy such failure.

 

(e) 
As promptly as possible after the giving of notice of termination to the
Servicer of the Servicer’s rights and powers pursuant to Section 8.1 of
the Sale and Servicing Agreement, the Backup Servicer shall become the
successor servicer (the “Successor Servicer”), (or if there is no Backup
Servicer on such date, then the Issuer shall appoint a Successor Servicer
acceptable to the Indenture Trustee), and such Successor Servicer shall accept
its appointment by a written assumption in a form acceptable to the Indenture
Trustee. In the event that a Successor Servicer has not been appointed and
accepted its appointment at the time when the previous Servicer ceases to act
as Servicer, the Indenture Trustee without further action shall automatically be
appointed as the Successor Servicer. 
Notwithstanding the above, the Indenture Trustee shall, if it is unable
to so act, (i) notify the Issuer of its resignation as Successor Servicer
and (ii) appoint or petition a court of competent jurisdiction to appoint
any established institution, having a net worth of not less than $          and
whose regular business shall include the servicing of equipment receivables as
the successor to the Servicer under the Sale and Servicing Agreement.  In accordance with Section 8.2 of the
Sale and Servicing Agreement, the Issuer shall enter into an agreement with
such Successor Servicer for the servicing of the Receivables (such agreement to
be in form and substance satisfactory to the Indenture Trustee). If the
Indenture Trustee shall succeed to the previous Servicer’s duties as servicer
of the Receivables as provided herein, it shall do so in its individual
capacity and not in its capacity as Indenture Trustee and, accordingly, the
provisions of Article VI shall be inapplicable
to the Indenture Trustee in its duties as the

 

13

 

Successor Servicer and the servicing of the Receivables. In case the
Indenture Trustee shall become the Successor Servicer under the Sale and
Servicing Agreement, the Indenture Trustee shall be entitled to act through or
appoint as Servicer any one of its Affiliates; provided, that it shall be fully
liable for the actions and omissions of such Affiliate in its capacity as
Successor Servicer.  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 Indenture and the transactions
set forth or provided for herein, or be liable for or be required to make any
servicer advances.

 

(f) 
Upon any termination of the Servicer’s rights and powers pursuant to the Sale
and Servicing Agreement, the Issuer shall promptly notify the Indenture
Trustee. As soon as a Successor Servicer is appointed, the Issuer shall notify
the Indenture Trustee of such appointment, specifying in such notice the name
and address of such Successor Servicer.

 

(g) 
Without derogating from the absolute nature of the assignment Granted to the
Indenture Trustee under this Indenture or the rights of the Indenture Trustee
hereunder, the Issuer agrees that it will not, without the prior written
consent of the Indenture Trustee or the Holders of at least a majority of the
Outstanding Amount, amend, modify, waive, supplement, terminate or surrender,
or agree to any amendment, modification, supplement, termination, waiver or
surrender of, the terms of any Collateral (except to the extent otherwise
provided in the Sale and Servicing Agreement) or the Basic Documents, or waive
timely performance or observance by the Servicer or the Seller under the Sale
and Servicing Agreement or CNHCA under the CNHCA Purchase Agreement; provided, however,
that no such amendment shall: (i) increase or reduce in any manner the
amount of, or accelerate or delay the timing of, distributions that are
required to be made for the benefit of the Noteholders, or (ii) reduce the
aforesaid percentage of the Notes that are required to consent to any such
amendment, in either case without the consent of the Holders of all the
Outstanding Notes. If any such amendment, modification, supplement or waiver
shall be so consented to by the Indenture Trustee or such Holders, the Issuer
agrees, promptly following a request by the Indenture Trustee to do so, to
execute and deliver, in its own name and at its own expense, such agreements,
instruments, consents and other documents as the Indenture Trustee may deem necessary
or appropriate in the circumstances.

 

SECTION 3.8.  Negative
Covenants.  So long as any
Notes are Outstanding, the Issuer shall not:

 

(i)  except as
expressly permitted by this Indenture, the CNHCA Purchase Agreement or the Sale
and Servicing Agreement, sell, transfer, exchange or otherwise dispose of any
of the properties or assets of the Issuer, including those included in the
Trust Estate, unless directed to do so by the Indenture Trustee;

 

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

 

14

 

(iii)  (A) permit
the validity or effectiveness of this Indenture to be impaired, or permit the
Lien of this Indenture to be amended, hypothecated, subordinated, terminated or
discharged, or permit any Person to be released from any covenants or
obligations with respect to the Notes under this Indenture except as may be
expressly permitted hereby, (B) permit any Lien (other than the Lien of
this Indenture) to be created on or extend to or otherwise arise upon or burden
the Trust Estate or any part thereof or any interest therein or the proceeds
thereof or (C) permit the Lien of this Indenture not to constitute a valid
first priority (other than with respect to any tax lien, mechanics’ lien or
other lien not considered a Lien) security interest in the Trust Estate.

 

SECTION 3.9.  Annual
Statement as to Compliance. 
The Issuer will deliver to the Indenture Trustee, within 120 days after
the end of each fiscal year of the Issuer (commencing with the fiscal year
200X), an Officer’s Certificate, substantially in the form of Exhibit B,
stating that:

 

(i)  a review of the
activities of the Issuer during such year and of performance under this
Indenture has been made under such Authorized Officer’s supervision; and

 

(ii)  to the best of
such Authorized Officer’s knowledge, based on such review, the Issuer has
complied with all conditions and covenants under this Indenture throughout such
year or, if there has been a default in the compliance of any such condition or
covenant, specifying each such default known to such Authorized Officer and the
nature and status thereof.

 

SECTION 3.10.  Issuer May Consolidate,
etc., Only on Certain Terms. 
(a)  The Issuer shall not consolidate or merge with or into
any other Person, unless:

 

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

 

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

 

(iii)  the Rating
Agency Condition shall have been satisfied with respect to such transaction;

 

(iv)  the Issuer
shall have received an Opinion of Counsel (and shall have delivered copies
thereof to the Indenture Trustee) to the effect that such transaction will not
have any material adverse tax consequence to the Issuer, any Noteholder or any
Certificateholder;

 

(v)  any action that
is necessary to maintain the Lien and security interest created by this
Indenture shall have been taken; and

 

15

 

(vi)  the Issuer
shall have delivered to the Indenture Trustee an Officer’s Certificate and an
Opinion of Counsel each stating that such consolidation or merger and such
supplemental indenture comply with this Article III and that all
conditions precedent herein provided for relating to such transaction have been
complied with (including any filing required by the Exchange Act).

 

(b) 
The Issuer shall not convey or transfer any of its properties or assets,
including those included in the Trust Estate, to any Person, unless:

 

(i)  the Person that
acquires by conveyance or transfer the properties and assets of the Issuer the
conveyance or transfer of which is hereby restricted shall: (A) be a
United States citizen or a Person organized and existing under the laws of the
United States of America or any State, (B) expressly assumes, by an
indenture supplemental hereto, executed and delivered to the Indenture Trustee,
in form satisfactory to the Indenture Trustee, the due and punctual payment of
the principal of and interest on all Notes and the performance or observance of
every agreement and covenant of this Indenture on the part of the Issuer to be
performed or observed, all as provided herein, (C) expressly agrees by
means of such supplemental indenture that all right, title and interest so
conveyed or transferred shall be subject and subordinate to the rights of
Holders of the Notes, (D) unless otherwise provided in such supplemental
indenture, expressly agrees to indemnify, defend and hold harmless the Issuer
against and from any loss, liability or expense arising under or related to
this Indenture and the Notes and (E) expressly agrees by means of such
supplemental indenture that such Person (or if a group of Persons, then one
specified Person) shall make all filings with the Commission (and any other
appropriate Person) required by the Exchange Act in connection with the Notes;

 

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

 

(iii)  the Rating
Agency Condition shall have been satisfied with respect to such transaction;

 

(iv)  the Issuer
shall have received an Opinion of Counsel (and shall have delivered copies
thereof to the Indenture Trustee) to the effect that such transaction will not
have any material adverse tax consequence to the Issuer, any Noteholder or any
Certificateholder;

 

(v)  any action that
is necessary to maintain the Lien and security interest created by this Indenture
shall have been taken; and

 

(vi)  the Issuer
shall have delivered to the Indenture Trustee an Officer’s Certificate and an
Opinion of Counsel each stating that such conveyance or transfer and such
supplemental indenture comply with this Article and that all conditions
precedent herein provided for relating to such transaction have been complied
with (including any filing required by the Exchange Act).

 

SECTION 3.11.  Successor
or Transferee.  (a)   Upon any consolidation or merger of the
Issuer in accordance with Section 3.10(a), the Person formed by or surviving such
consolidation

 

16

 

or merger (if other than the Issuer) shall succeed to, and be
substituted for, and may exercise every right and power of, the Issuer under
this Indenture with the same effect as if such Person had been named as the
Issuer herein.

 

(b) 
Upon a conveyance or transfer of all the assets and properties of the Issuer
pursuant to Section 3.10(b),
the Issuer will be released from every covenant and agreement of this Indenture
to be observed or performed on the part of the Issuer with respect to the Notes
immediately upon the delivery of written notice to the Indenture Trustee and
the Counterparty stating that the Issuer is to be so released.

 

SECTION 3.12.  No
Other Business.  The
Issuer shall not engage in any business other than financing, purchasing,
owning, selling and managing of the Receivables in the manner contemplated by
this Indenture and the Basic Documents and activities incidental thereto.

 

SECTION 3.13.  No
Borrowing.  The Issuer
shall not issue, incur, assume, guarantee or otherwise become liable, directly
or indirectly, for any indebtedness except for the Notes.

 

SECTION 3.14.  Servicer’s Obligations.  The Issuer shall cause the Servicer to comply
with Sections 4.8, 4.9, 4.10, 4.11 and 5.11 of the Sale and Servicing
Agreement.

 

SECTION 3.15.  Guarantees,
Loans, Advances and Other Liabilities.  Except as contemplated by the Sale and
Servicing Agreement or this Indenture, the Issuer shall not make any loan or
advance or credit to, or guarantee (directly or indirectly or by an instrument
having the effect of assuring another’s payment or performance on any
obligation or capability of so doing or otherwise), endorse or otherwise become
contingently liable, directly or indirectly, in connection with the
obligations, stocks or dividends of, or own, purchase, repurchase or acquire
(or agree contingently to do so) any stock, obligations, assets or securities
of, or any other interest in, or make any capital contribution to, any other
Person.

 

SECTION 3.16.  Capital
Expenditures.  The Issuer
shall not make any expenditure (by long-term or operating lease or otherwise)
for capital assets (either realty or personalty).

 

SECTION 3.17.  Removal
of Administrator.  So long
as any Notes are Outstanding, the Issuer shall not remove the Administrator
without cause unless the Rating Agency Condition shall have been satisfied in
connection with such removal.

 

SECTION 3.18.  Restricted
Payments.  The Issuer
shall not, directly or indirectly: (i) pay any dividend or make any
distribution (by reduction of capital or otherwise), whether in cash, property,
securities or a combination thereof, to the Trustee or any owner of a
beneficial interest in the Issuer or otherwise with respect to any ownership or
equity interest or security in or of the Issuer or to the Servicer or the
Administrator, (ii) redeem, purchase, retire or otherwise acquire for
value any such ownership or equity interest or security or (iii) set aside
or otherwise segregate any amounts for any such purpose; provided, however,
that the Issuer may make, or cause to be made, distributions to the Servicer,
the Trustee, the Certificateholders and the Administrator as contemplated by,
and to the extent funds are available for such purpose under, the Sale and
Servicing Agreement.  The Issuer will
not, directly or indirectly, make payments to or distributions from the
Collection Account except in accordance with this Indenture and the other Basic
Documents.

 

17

 

SECTION 3.19.  Notice
of Events of Default.  The
Issuer shall give the Indenture Trustee, the Counterparty and the Rating
Agencies prompt written notice of each Event of Default hereunder, each default
on the part of the Servicer or the Seller of its obligations under the Sale and
Servicing Agreement and each default on the part of CNHCA of its obligations
under the CNHCA Purchase Agreement.

 

SECTION 3.20.  Further
Instruments and Acts.  Upon request of the Indenture Trustee, the
Issuer will execute and deliver such further instruments and do such further
acts as may be reasonably necessary or proper to carry out more effectively the
purpose of this Indenture.

 

SECTION 3.21.  Perfection Representation.  The Issuer further makes all the
representations, warranties and covenants set forth in Schedule P.

 

ARTICLE IV

Satisfaction
and Discharge

 

SECTION 4.1.  Satisfaction
and Discharge of Indenture. 
This Indenture shall cease to be of further effect with respect to the
Notes except as to: (i) rights of registration of transfer and exchange, (ii) substitution
of mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders
to receive payments of principal thereof and interest thereon, (iv) Sections 3.3, 3.4,
3.5, 3.8, 3.10, 3.12 and 3.13, (v) the rights,
obligations and immunities of the Indenture Trustee hereunder (including the
rights of the Indenture Trustee under Section 6.7 and the
obligations of the Indenture Trustee under Section 4.2) and (vi) the
rights of Noteholders and the Counterparty as beneficiaries hereof with respect
to the property so deposited with the Indenture Trustee payable to all or any
of them, and the Indenture Trustee, on demand of and at the expense of the Issuer,
shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture with respect to the Notes, when:

 

(A)  either:

 

(1)  all Notes
theretofore authenticated and delivered (other than: (i) Notes that have
been destroyed, lost or stolen and that have been replaced or paid as provided
in Section 2.5
and (ii) Notes for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Issuer and thereafter
repaid to the Issuer or discharged from such trust, as provided in Section 3.3)  have
been delivered to the Indenture Trustee for cancellation; or

 

(2)  all Notes not
theretofore delivered to the Indenture Trustee for cancellation:

 

(i)  have become due
and payable,

 

(ii)  will become
due and payable on the Final Scheduled Maturity Date within one year, or

 

18

 

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

 

and the Issuer, in the case of clause (2)(i), (ii) or
(iii),
has irrevocably deposited or caused to be irrevocably deposited with the
Indenture Trustee cash or direct obligations of or obligations guaranteed by
the United States of America (which will mature prior to the date such amounts
are payable), in trust for such purpose, in an amount sufficient to pay and
discharge the entire indebtedness on such Notes not theretofore delivered to
the Indenture Trustee for cancellation when due to the Final Scheduled Maturity
Date or Redemption Date (if Notes shall have been called for redemption
pursuant to Section 10.1(a)), as
the case may be;

 

(B)  the Issuer has
paid or caused to be paid all other sums payable hereunder (including amounts
due and payable under the Interest Rate Swap Agreement) by the Issuer; and

 

(C)  the Issuer has
delivered to the Indenture Trustee an Officer’s Certificate, an Opinion of
Counsel and (if required by the TIA) an Independent Certificate from a firm of
certified public accountants, each meeting the applicable requirements of Section 11.1(a) and,
subject to Section 11.2,
each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with.

 

SECTION 4.2.  Application
of Trust Money.  All
moneys deposited with the Indenture Trustee pursuant to Section 4.1 shall
be held in trust and applied by it, in accordance with the provisions of the
Notes and this Indenture, to the payment, either directly or through any Paying
Agent, as the Indenture Trustee may determine, to the Holders of the particular
Notes for the payment or redemption of which such moneys have been deposited
with the Indenture Trustee, of all sums due and to become due thereon for
principal and interest; but such moneys need not be segregated from other funds
except to the extent required herein or in the Sale and Servicing Agreement or
as required by law.

 

SECTION 4.3.  Repayment
of Moneys Held by Paying Agent. 
In connection with the satisfaction and discharge of this Indenture with
respect to the Notes, all moneys then held by any Paying Agent other than the
Indenture Trustee under this Indenture with respect to such Notes shall, upon
demand of the Issuer, be paid to the Indenture Trustee to be held and applied
according to Section 3.3,
and thereupon such Paying Agent shall be released from all further liability
with respect to such moneys.

 

ARTICLE V

Remedies

 

SECTION 5.1.  Events
of Default.  “Event of
Default”, wherever used herein, means any one of the following events (whatever
the reason for such Event of Default and whether it shall

 

19

 

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):

 

(i)  default in the payment of
any interest on any Note when the same becomes due and payable, and such
default shall continue for a period of five days;

 

(ii)  default in the payment of
the principal of any Note when the same becomes due and payable;

 

(iii)  default in the observance
or performance of any covenant or agreement of the Issuer made in this
Indenture (other than a covenant or agreement a default in the observance or
performance of which is elsewhere in this Section specifically dealt with), or
any representation or warranty of the Issuer made in this Indenture or in any
certificate or other writing delivered pursuant hereto or in connection
herewith proving to have been incorrect in any material respect as of the time
when the same shall have been made, and such default shall continue or not be cured,
or the circumstance or condition in respect of which such misrepresentation or
warranty was incorrect shall not have been eliminated or otherwise cured, for a
period of 30 days after there shall have been given, by registered or certified
mail, to the Issuer by the Indenture Trustee or to the Issuer and the Indenture
Trustee by the Holders of at least 25% of the Outstanding Amount of the Notes,
a written notice specifying such default or incorrect representation or
warranty and requiring it to be remedied and stating that such notice is a
notice of Default hereunder;

 

(iv)  the filing of a decree or
order for relief by a court having jurisdiction in the premises in respect of
the Issuer or any substantial part of the Trust Estate in an involuntary case under
any applicable federal or State bankruptcy, insolvency or other similar law now
or hereafter in effect, or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Issuer or for any
substantial part of the Trust Estate, or ordering the winding-up or liquidation
of the Issuer’s affairs, and such decree or order shall remain unstayed and in
effect for a period of 60 consecutive days; or

 

(v)  the commencement by the
Issuer of a voluntary case under any applicable federal or State bankruptcy,
insolvency or other similar law now or hereafter in effect, or the consent by
the Issuer to the entry of an order for relief in an involuntary case under any
such law, or the consent by the Issuer to the appointment or taking possession
by a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar official of the Issuer or for any substantial part of the Trust Estate,
or the making by the Issuer of any general assignment for the benefit of
creditors, or the failure by the Issuer generally to pay its debts as such
debts become due, or the taking of action by the Issuer in furtherance of any
of the foregoing.

 

The Issuer shall
deliver to the Indenture Trustee and the Counterparty, within five days after
the Issuer or the Administrator obtains actual knowledge thereof, written
notice in the form of an Officer’s Certificate of any event that, with the
giving of notice or the lapse of time or both, 

 

20

 

would become an Event of Default under clause (iii), its status and what
action the Issuer is taking or proposes to take with respect thereto.

 

SECTION 5.2.  Acceleration
of Maturity; Rescission and Annulment.  If an Event of Default should occur and be
continuing, then and in every such case the Indenture Trustee or the Holders of
Notes representing not less than a majority of the Outstanding Amount may
declare all the Notes to be immediately due and payable, by a notice in writing
to the Issuer (and to the Indenture Trustee if given by Noteholders), and upon
any such declaration the Outstanding Amount, together with accrued and unpaid
interest thereon through the date of acceleration, shall become immediately due
and payable.

 

At any time after
such declaration of acceleration of maturity has been made and before a
judgment or decree for payment of the money due has been obtained by the
Indenture Trustee as hereinafter in this Article V provided,
the Holders of Notes representing not less than a majority of the Outstanding
Amount, by written notice to the Issuer, the Counterparty and the Indenture
Trustee, may rescind and annul such declaration and its consequences if:

 

(i)  the Issuer has paid or
deposited with the Indenture Trustee a sum sufficient to pay:

 

(A)  all
payments of principal of and interest on all Notes and all other amounts that
would then be due hereunder or upon such Notes if the Event of Default giving
rise to such acceleration had not occurred; and

 

(B)  all sums
paid or advanced by the Indenture Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee and
its agents and counsel; and

 

(ii)  all Events of Default,
other than the nonpayment of the principal of the Notes that has become due solely
by such acceleration, have been cured or waived as provided in Section 5.12.

 

No such rescission
shall affect any subsequent default or impair any right consequent to such
default.

 

SECTION 5.3.  Collection
of Indebtedness and Suits for Enforcement by Indenture Trustee.  (a)  
The Issuer covenants that if an Event of Default described in Sections 5.1(i) or
(ii) occurs,
the Issuer will, upon demand of the Indenture Trustee, pay to it, for the
benefit of the Holders of Notes, the whole amount then due and payable on such
Notes for principal and interest, with interest upon the overdue principal at
the applicable interest rate, and, to the extent payment at such rate of
interest shall be legally enforceable, upon overdue installments of interest,
at the applicable interest rate, and in addition thereto such further amount as
shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the
Indenture Trustee and its agents and counsel.

 

(b)  In case the Issuer shall fail forthwith to
pay such amounts upon such demand, the Indenture Trustee, in its own name and
as trustee of an express trust, may institute a Proceeding for the collection
of the sums so due and unpaid, and may prosecute such Proceeding to 

 

21

 

judgment or final decree, and may enforce the same
against the Issuer or other obligor upon such Notes and collect in the manner
provided by law out of the property of the Issuer or other obligor upon such
Notes, wherever situated, the moneys adjudged or decreed to be payable.

 

(c)  In case an Event of Default occurs and is
continuing, the Indenture Trustee may, as more particularly provided in Section 5.4, in
its discretion, proceed to protect and enforce its rights and the rights of the
Noteholders, by such appropriate Proceedings as the Indenture Trustee shall
deem most effective to protect and enforce any such rights, whether for the
specific enforcement of any covenant or agreement in this Indenture or in aid
of the exercise of any power granted herein, or to enforce any other proper
remedy or legal or equitable right vested in the Indenture Trustee by this
Indenture or by law.

 

(d)  In case there shall be pending, relative to
the Issuer or any other obligor upon the Notes or any Person having or claiming
an ownership interest in the Trust Estate, Proceedings under Title 11 of the
United States Code or any other applicable federal or State bankruptcy,
insolvency or other similar law, or in case a receiver, assignee, 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 Person, or in case of any other comparable judicial
Proceedings relative to the Issuer or other obligor upon the Notes, or to the
creditors or property of the Issuer or such other obligor, the Indenture
Trustee, irrespective of whether the principal of any Notes shall then be due
and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Indenture Trustee shall have made any demand
pursuant to this Section, shall be entitled and empowered, by intervention in
such Proceedings or otherwise:

 

(i)  to file and prove a claim or
claims for the whole amount of principal and interest owing and unpaid in
respect of the Notes and to file such other papers or documents as may be
necessary or advisable in order to have the claims of the Indenture Trustee
(including any claim for reasonable compensation to the Indenture Trustee and
each predecessor Indenture Trustee, and their respective agents, attorneys and
counsel, and for reimbursement of all expenses and liabilities incurred, and
all advances made, by the Indenture Trustee and each predecessor Indenture
Trustee, except as a result of negligence or bad faith) and of the Noteholders
allowed in such Proceedings;

 

(ii)  unless prohibited by
applicable law or regulations, to vote on behalf of the Holders of the Notes in
any election of a trustee, a standby trustee or any Person performing similar
functions in any such Proceedings;

 

(iii)  to collect and receive any
moneys or other property payable or deliverable on any such claims and to
distribute all amounts received with respect to the claims of the Noteholders
and of the Indenture Trustee on their behalf; and

 

(iv)  to file such proofs of
claim and other papers or documents as may be necessary or advisable in order
to have the claims of the Indenture Trustee or the Holders of Notes allowed in
any judicial Proceedings relative to the Issuer, its creditors and its
property;

 

22

 

and any trustee,
receiver, liquidator, assignee, custodian, sequestrator or other similar
official in any such Proceeding is hereby authorized by each of such
Noteholders to make payments to the Indenture Trustee, and, in the event that
the Indenture Trustee shall consent to the making of payments directly to such
Noteholders, to pay to the Indenture Trustee such amounts as shall be
sufficient to cover reasonable compensation to the Indenture Trustee, each
predecessor Indenture Trustee and their respective agents, attorneys and
counsel, and all other reasonable expenses and liabilities incurred, and all
advances made, by the Indenture Trustee and each predecessor Indenture Trustee
except as a result of negligence or bad faith.

 

(e)  Nothing herein contained shall be deemed to
authorize the Indenture Trustee to authorize or consent to or vote for or
accept or adopt on behalf of any Noteholder any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any
Holder thereof or to authorize the Indenture Trustee to vote in respect of the
claim of any Noteholder in any such proceeding except, as aforesaid, to vote
for the election of a trustee in bankruptcy or similar Person.

 

(f)  All rights of action and of asserting claims
under this Indenture, or under any of the Notes, may be enforced by the
Indenture Trustee without the possession of any of the Notes or the production
thereof in any trial or other Proceedings relative thereto, and any such action
or Proceedings instituted by the Indenture Trustee shall be brought in its own
name and as trustee of an express trust, and any recovery of judgment, subject
to the payment of the expenses, disbursements and compensation of the Indenture
Trustee, each predecessor Indenture Trustee and their respective agents and
attorneys, shall be for the ratable benefit of the Holders of the Notes.

 

(g)  In any Proceedings brought by the Indenture
Trustee (and also any Proceedings involving the interpretation of any provision
of this Indenture to which the Indenture Trustee shall be a party), the
Indenture Trustee shall be held to represent all the Holders of the Notes, and
it shall not be necessary to make any Noteholder a party to any such
Proceedings.

 

SECTION 5.4.  Remedies;
Priorities.  (a)   If an Event of Default shall have occurred
and be continuing, the Indenture Trustee may do one or more of the following
(subject to Section
5.5):

 

(i)  institute Proceedings in its
own name and as trustee of an express trust for the collection of all amounts
then payable on the Notes or under this Indenture with respect thereto, whether
by declaration or otherwise, enforce any judgment obtained, and collect from
the Issuer and any other obligor upon such Notes moneys adjudged due;

 

(ii)  institute Proceedings from
time to time for the complete or partial foreclosure of this Indenture with
respect to the Trust Estate;

 

(iii)  exercise any remedies of a
secured party under the UCC and take any other appropriate action to protect
and enforce the rights and remedies of the Indenture Trustee and the Holders of
the Notes;

 

(iv)  sell the Trust Estate, or
any portion thereof or rights or interest therein, at one or more public or
private sales called and conducted in any manner permitted by law; and

 

23

 

(v)  make demand upon the
Servicer, by written notice, that the Servicer deliver to the Indenture Trustee
all Receivable Files;

 

provided, however,
that the Indenture Trustee may not sell or otherwise liquidate the Trust Estate
following an Event of Default, other than an Event of Default described in Section 5.1(i) or
(ii),
unless: (A) all the Noteholders consent thereto, (B) the proceeds of such sale
or liquidation distributable to the Noteholders are sufficient to discharge in
full all amounts then due and unpaid upon such Notes for principal and interest
or (C) the Indenture Trustee determines that the Trust Estate will not continue
to provide sufficient funds for the payment of principal of and interest on the
Notes as they would have become due if the Notes had not been declared due and
payable, and the Indenture Trustee obtains the consent of Holders of 66 2/3% of
the Outstanding Amount of the Notes. In determining such sufficiency or
insufficiency with respect to clauses (B) and (C), the Indenture Trustee may, but need not, obtain and
rely upon an opinion of an Independent investment banking or accounting firm of
national reputation as to the feasibility of such proposed action and as to the
sufficiency of the Trust Estate for such purpose.  The Indenture Trustee shall incur no
liability as a result of the sale of the Trust Estate or any part thereof at
any sale pursuant to this Section 5.4 conducted in a commercially reasonable
manner.  Each of the Issuer and Holders
hereby waives any claims against the Indenture Trustee arising by reason of the
fact that the price at which the Trust Estate may have been sold at such sale
was less than the price that might have been obtained, even if the Indenture
Trustee accepts the first offer received and does not offer the Trust Estate to
more than one offeree, so long as such sale is conducted in a commercially
reasonable manner.

 

(b)  If the Indenture Trustee collects any money
or property pursuant to this Article V, it shall pay out such money or property in the
following order:

 

FIRST: to pay the Backup Servicer
its accrued and unpaid Backup Servicer Fees;

 

SECOND: to pay the Servicer its
accrued and unpaid Servicing Fee;

 

THIRD: to the Indenture Trustee
for amounts due under Section
6.7;

 

FOURTH: to the Note Distribution
Account for distribution pursuant to Section 8.2(e)
to the extent of all amounts payable under such Section, other than any amounts
that would be deposited into the Certificate Distribution Account under such
Section;

 

FIFTH: first, to the Backup
Servicer, to cover any accrued and unpaid reimbursable expenses (including the
Backup Servicer Expenses) to the extent unreimbursed after application of
Section 4.12 of the Sale and Servicing Agreement and second to the Servicer, to
cover any accrued and unpaid reimbursable expenses; and

 

SIXTH: to the Issuer for
distribution to the Certificateholders.

 

The Indenture
Trustee may fix a special record date and special payment date for any payment
to Noteholders pursuant to this Section. At least 15 days before such special
record date, the Issuer shall mail to each Noteholder and the Indenture Trustee
a notice that states the special record date, the special payment date and the
amount to be paid.

 

24

 

SECTION 5.5.  Optional
Preservation of the Receivables. 
If the Notes have been declared to be due and payable under Section 5.2 following
an Event of Default, and such declaration and its consequences have not been
rescinded and annulled, the Indenture Trustee may, but need not, elect to
maintain possession of the Trust Estate. 
It is the desire of the parties hereto and the Noteholders that there be
at all times sufficient funds for the payment of principal of and interest on
the Notes, and the Indenture Trustee shall take such desire into account when
determining whether or not to maintain possession of the Trust Estate.  In determining whether to maintain possession
of the Trust Estate, the Indenture Trustee may, but need not, obtain and rely
upon an opinion of an Independent investment banking or accounting firm of
national reputation as to the feasibility of such proposed action and as to the
sufficiency of the Trust Estate for such purpose.

 

SECTION 5.6.  Limitation
of Suits.  No Holder of
any Note shall have any right to institute any Proceeding, judicial or
otherwise, with respect to this Indenture, or for the appointment of a receiver
or trustee, or for any other remedy hereunder, unless:

 

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

 

(ii)  the Holder(s) of not less
than 25% of the Outstanding Amount of the Notes have made written request to
the Indenture Trustee to institute such Proceeding in respect of such Event of
Default in its own name as Indenture Trustee hereunder;

 

(iii)  such Holder(s) have
offered to the Indenture Trustee indemnity satisfactory to it against the
costs, expenses and liabilities to be incurred in complying with such request;

 

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

 

(v)  no direction inconsistent
with such written request has been given to the Indenture Trustee during such
60-day period by the Holders of a majority of the Outstanding Amount of the
Notes;

 

it being
understood and intended that no one or more Holder(s) of Notes shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture to affect, disturb or prejudice the rights of any other
Holder(s) of Notes or to obtain or to seek to obtain priority or preference
over any other Holder(s) or to enforce any right under this Indenture, except
in the manner herein provided.

 

In the event the
Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Noteholders, each representing less than a
majority of the Outstanding Amount of the Notes, the Indenture Trustee in its
sole discretion may determine what action, if any, shall be taken,
notwithstanding any other provisions of this Indenture.

 

SECTION 5.7.  Unconditional
Rights of Noteholders To Receive Principal and Interest.  Notwithstanding any other provisions in this
Indenture, the Holder of any Note shall have the right, which is absolute and
unconditional, to receive payment of the principal of and interest, if 

 

25

 

any, on such Note on or after the respective due dates
thereof expressed in such Note or in this Indenture (or, in the case of
redemption, on or after the Redemption Date) and to institute suit for the
enforcement of any such payment, and such right shall not be impaired without
the consent of such Holder.

 

SECTION 5.8.  Restoration
of Rights and Remedies. 
If the Indenture Trustee or any Noteholder has instituted any Proceeding
to enforce any right or remedy under this Indenture and such Proceeding has
been discontinued or abandoned for any reason or has been determined adversely
to the Indenture Trustee or to such Noteholder, then and in every such case the
Issuer, the Indenture Trustee and the Noteholders shall, subject to any
determination in such Proceeding, be restored severally and respectively to
their former positions hereunder, and thereafter all rights and remedies of the
Indenture Trustee and the Noteholders shall continue as though no such
Proceeding had been instituted.

 

SECTION 5.9.  Rights
and Remedies Cumulative. 
No right or remedy herein conferred upon or reserved to the Indenture
Trustee or to the Noteholders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

 

SECTION 5.10.  Delay
or Omission Not a Waiver. 
No delay or omission of the Indenture Trustee or any Holder of Notes to
exercise any right or remedy accruing upon any Default or Event of Default
shall impair any such right or remedy or constitute a waiver of any such
Default or Event of Default or an acquiescence therein.  Every right and remedy given by this Article
or by law to the Indenture Trustee or to the Noteholders may be exercised from
time to time, and as often as may be deemed expedient, by the Indenture Trustee
or by the Noteholders, as the case may be.

 

SECTION 5.11.  Control
by Noteholders.  The
Holders of not less than a majority of the Outstanding Amount of the Notes
shall have the right to direct the time, method and place of conducting any
Proceeding for any remedy available to the Indenture Trustee with respect to
the Notes or exercising any trust or power conferred on the Indenture Trustee; provided, that:

 

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

 

(ii)  subject to the express
terms of Section 5.4,
any direction to the Indenture Trustee to sell or liquidate the Trust Estate
shall be by all the Noteholders;

 

(iii)  if the conditions set
forth in Section 5.5 have
been satisfied and the Indenture Trustee elects to retain the Trust Estate
pursuant to such Section, then any direction to the Indenture Trustee by
Holders of Notes representing less than 100% of the Outstanding Amount of the
Notes to sell or liquidate the Trust Estate shall be of no force and effect;
and

 

26

 

(iv)  the Indenture Trustee may
take any other action deemed proper by the Indenture Trustee that is not
inconsistent with such direction;

 

provided
further, however, that,
subject to Section
6.1, the Indenture Trustee need not take any action that it
determines might involve it in liability or might materially adversely affect
the rights of any Noteholder(s) not consenting to such action.

 

SECTION 5.12.  Waiver
of Past Defaults.  Prior
to the time a judgment or decree for payment of money due has been obtained as
described in Section
5.3, the Holders of Notes of not less than a majority of the
Outstanding Amount of the Notes may waive any past Default or Event of Default
and its consequences except a Default: (a) in payment of principal of or
interest on any of the Notes or (b) in respect of a covenant or provision
hereof that cannot be modified or amended without the consent of the Holder of
each Note.  In the case of any such
waiver, the Issuer, the Indenture Trustee and the Holders of the Notes shall be
restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other Default or Event of Default
or impair any right consequent thereto.

 

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 impair any right consequent thereto.

 

SECTION 5.13.  Undertaking
for Costs.  All parties to
this Indenture agree, and each Holder of any Note by such Holder’s acceptance
thereof shall be deemed to have agreed, that any court may in its discretion
require, in any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Indenture Trustee for any action taken,
suffered or omitted by it as Indenture Trustee, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable
attorney’s 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: (a) any suit
instituted by the Indenture Trustee, (b) any suit instituted by any
Noteholder(s) holding in the aggregate more than 10% of the Outstanding Amount
of the Notes or (c) any suit instituted by any Noteholder for the enforcement
of the payment of principal of or interest on any Note on or after the
respective due dates expressed in such Note and in this Indenture (or, in the
case of redemption, on or after the Redemption Date).

 

SECTION 5.14.  Waiver
of Stay or Extension Laws. 
The Issuer covenants (to the extent that it may lawfully do so) that it
will not at any time insist upon, or plead or in any manner whatsoever, claim
or take the benefit or advantage of, any stay or extension law wherever
enacted, now or at any time hereafter in force, that may affect the covenants
or the performance of this Indenture; and the Issuer (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not hinder, delay or impede the execution of
any power herein granted to the Indenture Trustee, but will suffer and permit
the execution of every such power as though no such law had been enacted.

 

27

 

SECTION 5.15.  Action
on Notes.  The Indenture
Trustee’s right to seek and recover judgment on the Notes or under this
Indenture shall not be affected by the seeking, obtaining or application of any
other relief under or with respect to this Indenture.  Neither the Lien of this Indenture nor any
rights or remedies of the Indenture Trustee or the Noteholders shall be
impaired by the recovery of any judgment by the Indenture Trustee against the
Issuer or by the levy of any execution under such judgment upon any portion of
the Trust Estate or upon any of the assets of the Issuer. Any money or property
collected by the Indenture Trustee shall be applied in accordance with Section 5.4(b).

 

SECTION 5.16.  Performance
and Enforcement of Certain Obligations.  (a)  
Promptly following a request from the Indenture Trustee to do so and at
the Administrator’s expense, the Issuer shall take all such lawful action as
the Indenture Trustee may request to compel or secure the performance and
observance by the Seller and the Servicer, as applicable, of each of their
obligations to the Issuer under or in connection with the Sale and Servicing
Agreement or to the Seller under or in connection with the CNHCA Purchase
Agreement in accordance with the terms thereof, and to exercise any and all
rights, remedies, powers and privileges lawfully available to the Issuer under
or in connection with the Sale and Servicing Agreement (or the Seller under or
in connection with the CNHCA Purchase Agreement) to the extent and in the
manner directed by the Indenture Trustee, including the transmission of notices
of default on the part of the Seller or the Servicer thereunder and the
institution of legal or administrative actions or proceedings to compel or
secure performance by the Seller or the Servicer of each of their obligations
under the Sale and Servicing Agreement or the CNHCA Purchase Agreement.

 

(b)  If an Event of Default has occurred and is
continuing, the Indenture Trustee may, and at the direction (which direction shall
be in writing) of the Holders of not less than 66 2/3% of the Outstanding
Amount of the Notes shall, exercise all rights, remedies, powers, privileges
and claims of the Issuer against the Seller or the Servicer under or in
connection with the Sale and Servicing Agreement, including the right or power
to take any action to compel or secure performance or observance by the Seller
or the Servicer of each of their obligations to the Issuer thereunder and to
give any consent, request, notice, direction, approval, extension or waiver
under the Sale and Servicing Agreement, and any right of the Issuer to take
such action shall be suspended.

 

(c)  If an Event of Default has occurred and is
continuing, the Indenture Trustee may, and at the direction (which direction
shall be in writing) of the Holders of not less than 66 2/3% of the Outstanding
Amount of the Notes shall, exercise all rights, remedies, powers, privileges
and claims of the Seller against CNHCA under or in connection with the CNHCA
Purchase Agreement, including the right or power to take any action to compel
or secure performance or observance by CNHCA, of each of its obligations to the
Seller thereunder and to give any consent, request, notice, direction,
approval, extension or waiver under the CNHCA Purchase Agreement, and any right
of the Seller to take such action shall be suspended.

 

28

 

ARTICLE VI

The Indenture Trustee

 

SECTION 6.1.  Duties
of the Indenture Trustee. 
(a)   If an Event of Default has occurred and is continuing,
the Indenture Trustee shall exercise the rights and powers vested in it by this
Indenture and use the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person’s own affairs.

 

(b)  Except during the continuance of an Event of
Default actually known to a Responsible Officer:

 

(i)  the Indenture Trustee
undertakes to perform such duties and only such duties as are specifically set
forth in this Indenture and no implied covenants or obligations shall be read
into this Indenture against the Indenture Trustee; and

 

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

 

(c)  The Indenture Trustee may not be relieved
from liability for its own negligent action, its own negligent failure to act
or its own willful misconduct, except that:

 

(i)  this clause (c) does not limit the
effect of clause (b) of
this Section;

 

(ii)  the Indenture Trustee shall
not be liable for any error of judgment made in good faith by a Responsible
Officer unless it is conclusively determined by a court of competent
jurisdiction that the Indenture Trustee was negligent in ascertaining the
pertinent facts;

 

(iii)  the Indenture Trustee shall
not be liable with respect to any action it takes or omits to take in good
faith in accordance with a direction received by it pursuant to the Indenture;

 

(iv)  the Indenture Trustee shall
not be charged with knowledge of an Event of Default or Servicer Default unless
a Responsible Officer obtains actual knowledge of such event or the Indenture
Trustee receives written notice of such event from the Seller, Servicer or Note
Owners owning Notes aggregating not less than 10% of the Outstanding Amount of the
Notes; and

 

(v)  the Indenture Trustee shall
have no duty to monitor the performance of the Issuer, the Trustee, the Seller
or the Servicer, nor shall it have any liability in connection with malfeasance
or nonfeasance by the Issuer, the Trustee, the Seller or the Servicer. 

 

29

 

The
Indenture Trustee shall have no liability in connection with compliance of the
Issuer, the Trustee, the Seller or the Servicer with statutory or regulatory
requirements related to the Receivables. The Indenture Trustee shall not make
or be deemed to have made any representations or warranties with respect to the
Receivables or the validity or sufficiency of any assignment of the Receivables
to the Trust Estate or the Indenture Trustee.

 

(d)  Every provision of this Indenture that in any
way relates to the Indenture Trustee is subject to clauses (a), (b), (c) and (g).

 

(e)  The Indenture Trustee shall not be liable for
interest on any money received by it except as the Indenture Trustee may agree
in writing with the Issuer.

 

(f)  Money held in trust by the Indenture Trustee
need not be segregated from other funds except to the extent required by law,
this Indenture or the Sale and Servicing Agreement.

 

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

 

(h)  Every provision of this Indenture relating to
the conduct or affecting the liability of or affording protection to the
Indenture Trustee shall be subject to this Section and the TIA.

 

SECTION 6.2.  Rights
of Indenture Trustee.  (a)
  The Indenture Trustee may conclusively rely and shall be fully
protected in acting on any document reasonably believed by it to be genuine and
to have been signed or presented by the proper Person. The Indenture Trustee
need not investigate any fact or matter stated in any such document.

 

(b)  Before the Indenture Trustee acts or refrains
from acting, it may require an Officer’s Certificate or an Opinion of Counsel.
The Indenture Trustee shall not be liable for any action it takes or omits to
take in good faith in reliance on the Officer’s Certificate or Opinion of
Counsel.

 

(c)  The Indenture Trustee may execute any of the
trusts or powers hereunder or perform any duties hereunder either directly or
by or through agents, attorneys, a custodian or a nominee, and the Indenture
Trustee shall not be responsible for any misconduct or negligence on the part
of, or for the supervision of, any such agent, attorney, custodian or nominee
appointed with due care by it.

 

(d)  The Indenture Trustee shall not be liable for
any action it takes or omits to take in good faith that it believes to be
authorized or within its rights or powers; provided, however, that the
Indenture Trustee’s conduct does not constitute willful misconduct, negligence
or bad faith.

 

(e)  The Indenture Trustee may consult with
counsel, and the advice or opinion of counsel with respect to legal matters
relating to this Indenture and the Notes shall be full and complete
authorization and protection from liability in respect to any action taken,
omitted or suffered by it hereunder in good faith and in accordance with the
advice or opinion of such counsel.

 

30

 

(f)  The Indenture Trustee shall not be required
to make any initial or periodic examination of any files or records related to
the Receivables for the purpose of establishing the presence or absence of
defects, the compliance by the Issuer with its representations and warranties
or for any other purpose.

 

(g)  In the event that the Indenture Trustee is
also acting as Paying Agent or Note Registrar hereunder, the rights and
protections afforded to the Indenture Trustee pursuant to this Article VI shall
also be afforded to the Indenture Trustee in its capacity as such Paying Agent
or Note Registrar.

 

SECTION 6.3.  Individual
Rights of the Indenture Trustee. 
The Indenture Trustee shall not, in its individual capacity, but may in
a fiduciary capacity, become the owner of Notes or otherwise extend credit to
the Issuer.  The Indenture Trustee may
otherwise deal with the Issuer or its Affiliates with the same rights it would
have if it were not the Indenture Trustee. 
Any Paying Agent, Note Registrar, co-registrar or co-paying agent may do
the same with like rights. However, the Indenture Trustee must comply with Sections 6.11 and
6.12.

 

SECTION 6.4.  Indenture
Trustee’s Disclaimer.  The
Indenture Trustee shall not be responsible for, and makes no representation as
to the validity or adequacy of, this Indenture or the Notes; shall not be
accountable for the Issuer’s use of the proceeds from the Notes; and shall not
be responsible for any statement of the Issuer in this Indenture or in any
document issued in connection with the sale of the Notes or in the Notes other
than the Indenture Trustee’s certificate of authentication.

 

SECTION 6.5.  Notice
of Defaults.  If a Default
occurs and is continuing and is known to a Responsible Officer, the Indenture
Trustee shall mail to the Counterparty and each Noteholder notice of the
Default within 90 days after it occurs. Except in the case of a Default in
payment of principal of or interest on any Note (including payments pursuant to
the mandatory redemption provisions of such Note), the Indenture Trustee may
withhold the notice if and so long as a committee of its Responsible Officers
in good faith determines that withholding the notice is in the interests of
Noteholders and the Counterparty.

 

SECTION 6.6.  Reports
by Indenture Trustee to the Holders.  The Indenture Trustee shall deliver to each
Noteholder such information as may be required to enable such Holder to prepare
its federal, State and other income tax returns. Within 60 days after each
December 31, starting with December 31, 200X, the Indenture Trustee shall
mail to each Noteholder a brief report as of such December 31 that complies
with TIA § 313(a) (if required by said section).

 

SECTION 6.7.  Compensation
and Indemnity.  The Issuer
shall, or shall cause the Servicer to, pay to the Indenture Trustee from time
to time reasonable compensation for its services as agreed to between the
Issuer and the Indenture Trustee in writing. The Indenture Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Issuer shall, or shall cause the Servicer to, reimburse the
Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by
it, including costs of collection, in addition to the compensation for its
services. Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Indenture Trustee’s agents, counsel,
accountants and experts. The Issuer shall or shall cause the Servicer to
indemnify the 

 

31

 

Indenture Trustee and its officers, directors,
employees and agents against any and all loss, liability or expense (including
attorneys’ fees and expenses) incurred by them in connection with the administration
of this trust and the performance of its duties hereunder. The Indenture
Trustee shall notify the Issuer and the Servicer promptly of any claim for
which it may seek indemnity. Failure by the Indenture Trustee to so notify the
Issuer and the Servicer shall not relieve the Issuer or the Servicer of its
respective obligations hereunder. The Issuer shall, or shall cause the Servicer
to, defend the claim and the Indenture Trustee may have separate counsel and
the Issuer shall, or shall cause the Servicer to, pay the reasonable fees and
expenses of such counsel. Notwithstanding anything to the contrary contained
herein, neither the Issuer nor the Servicer need reimburse any expense or
indemnify against any loss, liability or expense incurred by the Indenture
Trustee through the Indenture Trustee’s own willful misconduct, negligence or
bad faith.

 

The Issuer’s
payment obligations to the Indenture Trustee pursuant to this Section shall
survive the discharge of this Indenture or the earlier resignation or removal
of the Indenture Trustee. When the Indenture Trustee incurs expenses after the
occurrence of a Default specified in Section 5.1(iv) or (v), the expenses are intended to constitute expenses of
administration under Title 11 of the United States Code or any other applicable
federal or State bankruptcy, insolvency or similar law.

 

SECTION 6.8.  Replacement
of the Indenture Trustee. 
No resignation or removal of the Indenture Trustee and no appointment of
a successor Indenture Trustee shall become effective until the acceptance of
appointment by the successor Indenture Trustee pursuant to this Section 6.8.  The Indenture Trustee may resign at any time
by so notifying the Issuer in writing. 
The Holders of not less than a majority of the Outstanding Amount of the
Notes may remove the Indenture Trustee by so notifying the Indenture Trustee in
writing and may appoint a successor Indenture Trustee.  The Issuer shall remove the Indenture Trustee
if:

 

(i)  the Indenture Trustee fails
to comply with Section
6.11;

 

(ii)  the Indenture Trustee is
adjudged a bankrupt or insolvent;

 

(iii)  a receiver or other public
officer takes charge of the Indenture Trustee or its property; or

 

(iv)  the Indenture Trustee
otherwise becomes incapable of acting.

 

If the Indenture
Trustee resigns or is removed or if a vacancy exists in the office of Indenture
Trustee for any reason (the Indenture Trustee in such event being referred to
herein as the retiring Indenture Trustee), the Issuer shall promptly appoint a
successor Indenture Trustee.

 

A successor
Indenture Trustee shall deliver a written acceptance of its appointment to the
retiring Indenture Trustee and to the Issuer. Thereupon the resignation or
removal of the retiring Indenture Trustee shall become effective, and the successor
Indenture Trustee shall have all the rights, powers and duties of the Indenture
Trustee under this Indenture. The successor Indenture Trustee shall mail a
notice of its succession to the Counterparty and the Noteholders. The retiring
Indenture Trustee shall promptly transfer all property held by it as Indenture
Trustee to the successor Indenture Trustee.

 

32

 

If a successor
Indenture Trustee does not take office within 60 days after the retiring
Indenture Trustee resigns or is removed, the retiring Indenture Trustee, the
Issuer or the Holders of not less than a majority of the Outstanding Amount of
the Notes may petition any court of competent jurisdiction for the appointment
of a successor Indenture Trustee.

 

If the Indenture
Trustee fails to comply with Section 6.11, any Noteholder may petition any court of
competent jurisdiction for the removal of the Indenture Trustee and the
appointment of a successor Indenture Trustee.

 

Notwithstanding
the replacement of the Indenture Trustee pursuant to this Section, the Issuer’s
and the Administrator’s obligations under Section 6.7
shall continue for the benefit of the retiring Indenture Trustee. The retiring
Indenture Trustee shall have no liability for any act or omission by any
successor Indenture Trustee other than itself, serving again as Indenture
Trustee.

 

SECTION 6.9.  Successor
Indenture Trustee by Merger. 
If the Indenture Trustee consolidates with, merges or converts into, or
transfers all or substantially all its corporate trust business or assets to,
another corporation or banking association, the resulting, surviving or
transferee corporation without any further act shall be the successor Indenture
Trustee.  The Indenture Trustee shall
provide the Rating Agencies, the Counterparty and the Issuer prompt written
notice of any such transaction following the consummation thereof; provided, that
such corporation or banking association shall be otherwise qualified and
eligible under Section
6.11.

 

In case at the
time such successor(s) by merger, conversion or consolidation to the Indenture
Trustee shall succeed to the trusts created by this Indenture any of the Notes
shall have been authenticated but not delivered, any such successor to the
Indenture Trustee may adopt the certificate of authentication of any
predecessor Indenture Trustee, and deliver such Notes so authenticated; and in
case at that time any of the Notes shall not have been authenticated, any
successor to the Indenture Trustee may authenticate such Notes either in the
name of any predecessor Indenture Trustee hereunder or in the name of the
successor to the Indenture Trustee; and in all such cases such certificates of
authentication shall have the full force and effect to the same extent given to
the certificate of authentication of the Indenture Trustee anywhere in the
Notes or in this Indenture.

 

SECTION 6.10.  Appointment
of Co-Trustee or Separate Trustee.  (a)  
Notwithstanding any other provisions of this Indenture, at any time, for
the purpose of meeting any legal requirement of any jurisdiction in which any
part of the Trust Estate may at the time be located, the Indenture Trustee
shall have the power and may execute and deliver all instruments to appoint one
or more Person(s) to act as co-trustee(s), or separate trustee(s), of all or
any part of the Trust Estate, and to vest in such Person(s), in such capacity
and for the benefit of the Noteholders, such title to the Trust Estate, or any
part thereof, and, subject to the other provisions of this Section, such
powers, duties, obligations, rights and trusts as the Indenture Trustee may
consider necessary or desirable.  No
co-trustee or separate trustee hereunder shall be required to meet the terms of
eligibility as a successor trustee under Section 6.11 and no notice to
Noteholders of the appointment of any co-trustee or separate trustee shall be
required under Section
6.8.

 

33

 

(b)  Every separate trustee and co-trustee shall,
to the extent permitted by law, be appointed and act subject to the following
provisions and conditions:

 

(i)  all rights, powers, duties
and obligations conferred or imposed upon the Indenture Trustee shall be
conferred or imposed upon and exercised or performed by the Indenture Trustee
and such separate trustee or co-trustee jointly (it being understood that such
separate trustee or co-trustee is not authorized to act separately without the
Indenture Trustee joining in such act), except to the extent that under any law
of any jurisdiction in which any particular act(s) are to be performed, the
Indenture Trustee shall be incompetent or unqualified to perform such act(s),
in which event such rights, powers, duties and obligations (including the
holding of title to the Trust Estate or any portion thereof in any such
jurisdiction) shall be exercised and performed singly by such separate trustee
or co-trustee, but solely at the direction of the Indenture Trustee;

 

(ii)  no trustee hereunder shall
be personally liable by reason of any act or omission of any other trustee
hereunder; and

 

(iii)  the Indenture Trustee may
at any time accept the resignation of or remove, in its sole discretion, any
separate trustee or co-trustee.

 

(c)  Any notice, request or other writing given to
the Indenture Trustee shall be deemed to have been given to each of the then
separate trustees and co-trustees, as effectively as if given to each of
them.  Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article VI.  Each separate trustee and co-trustee, upon
its acceptance of the trusts conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Indenture Trustee or separately, as may be provided therein, subject to all the
provisions of this Indenture, specifically including every provision of this
Indenture relating to the conduct of, affecting the liability of, or affording
protection to, the Indenture Trustee. 
Every such instrument shall be filed with the Indenture Trustee.

 

(d)  Any separate trustee or co-trustee may at any
time constitute the Indenture Trustee as its agent or attorney-in-fact with
full power and authority, to the extent not prohibited by law, to do any lawful
act under or in respect of this Agreement on its behalf and in its name. If any
separate trustee or co-trustee shall die, become incapable of acting, resign or
be removed, all of its estates, properties, rights, remedies and trusts shall
vest in and be exercised by the Indenture Trustee, to the extent permitted by
law, without the appointment of a new or successor trustee.

 

(e)  The Indenture Trustee shall have no
obligation to determine whether a co-trustee or separate trustee is legally
required in any jurisdiction in which any part of the Trust Estate may be
located.

 

SECTION 6.11.  Eligibility;
Disqualification.  The
Indenture Trustee shall at all times satisfy the requirements of TIA § 310(a)
and, upon Issuer Order, Section 26(a)(1) of the Investment Company Act of 1940,
as amended. The Indenture Trustee shall have a combined capital and surplus of
at least $50,000,000 as set forth in its most recent published annual report of
condition and it shall have a long term senior, unsecured debt rating of “Baa3”
or better by 

 

34

 

Moody’s (or, if not rated by Moody’s, a comparable
rating by another statistical rating agency). The Indenture Trustee shall
comply with TIA § 310(b), including the optional provision permitted by the
second sentence of TIA § 310(b)(9); provided, however, that there
shall be excluded from the operation of TIA § 310(b)(1) any indenture(s) under
which other securities of the Issuer are outstanding if the requirements for
such exclusion set forth in TIA § 310(b)(1) are met.

 

If a default
occurs under this Indenture, and the Indenture Trustee is deemed to have a
conflicting interest as a result of acting as trustee for two or more of
(1) the Class A Notes, (2) the Class B Notes and (3) the Class C
Notes, a successor Indenture Trustee shall be appointed for one or more of such
Classes, so that there will be separate Indenture Trustees for the Class A
Notes, the Class B Notes and the Class C Notes, respectively.  No such event shall alter the voting rights
of the Class A Noteholders, the Class B Noteholders or the Class C Noteholders
under this Indenture or any other Basic Document.  However, so long as any amounts remain unpaid
with respect to the Class A Notes, only the Indenture Trustee for the Class A
Noteholders will have the right to exercise remedies under this Indenture (but
subject to the express provisions of Section 5.4 and to the right of the Class B Noteholders and
the Class C Noteholders to receive their respective shares of any proceeds of
enforcement, subject to the subordination of the Class B Notes to the Class A
Notes as described herein, and the subordination of the Class C Notes to the
Class A Notes and the Class B Notes as described herein).  Upon repayment of the Class A Notes in full,
but so long as any amounts remain unpaid with respect to the Class B Notes,
only the Indenture Trustee for the Class B Noteholders will have the right to
exercise remedies under this Indenture (but subject to the express provisions
of Section 5.4 and
to the right of the Class C Noteholders to receive their share of any proceeds
of enforcement, subject to the subordination of the Class C Notes to the Class
B Notes as described herein).  Upon
repayment of the Class B Notes in full, all rights to exercise remedies under
the Indenture will transfer to the Indenture Trustee for the Class C Notes.

 

In the case of the
appointment hereunder of  a successor
Indenture Trustee with respect to any Class of Notes, the Issuer, the retiring
Indenture Trustee and the successor Indenture Trustee with respect to such
Class of Notes shall execute and deliver an indenture supplemental hereto
wherein the each successor Indenture Trustee shall accept such appointment and
which (i) shall contain such provisions as shall be necessary or desirable to
transfer and confirm to, and to vest in, the successor Indenture Trustee all
the rights, powers, trusts and duties of the retiring Indenture Trustee with
respect to the Notes of the Class to which the appointment of such successor
Indenture Trustee relates, (ii) if the retiring Indenture Trustee is not
retiring with respect to all Classes of Notes, shall contain such provisions as
shall be deemed necessary or desirable to confirm that all the rights, powers,
trusts and duties of the retiring Indenture Trustee with respect to the Notes
of each Class as to which the retiring Indenture Trustee is not retiring shall
continue to be vested in the retiring Indenture Trustee, and (iii) shall add to
or change any of the provisions of this Indenture as shall be necessary to
provide for or facilitate the administration of the trusts hereunder by more
than one Indenture Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Indenture Trustees co-trustees of
the same trust and that each such Indenture Trustee shall be trustee of a trust
or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Indenture Trustee; and upon the execution and
delivery of such supplemental indenture the 

 

35

 

resignation or removal of the retiring Indenture Trustee shall become
effective to the extent provided therein.

 

SECTION 6.12.  Preferential
Collection of Claims Against the Issuer.  The Indenture Trustee shall comply with TIA §
311(a), excluding any creditor relationship listed in TIA § 311(b). An
Indenture Trustee who has resigned or been removed shall be subject to TIA §
311(a) to the extent indicated.

 

SECTION 6.13.  Representations
and Warranties.  The
Indenture Trustee hereby represents that:

 

(a)  the Indenture Trustee is duly organized and
validly existing as a national banking
corporation in good standing under the laws of the United States with
power and authority to own its properties and to conduct its business as such
properties are currently owned and such business is presently conducted;

 

(b)  the Indenture Trustee has the power and
authority to execute and deliver this Indenture and to carry out its terms; and
the execution, delivery and performance of this Indenture have been duly
authorized by the Indenture Trustee by all necessary corporate action;

(c)  the consummation of the transactions
contemplated by this Indenture and the fulfillment of the terms hereof do not
conflict with, result in any breach of any of the terms and provisions of, or
constitute (with or without notice or lapse of time) a default under the
articles of association
or bylaws of the Indenture Trustee or any material agreement or other
instrument to which the Indenture Trustee is a party or by which it is bound;
and

 

(d)  to best of
the Indenture Trustee’s knowledge, there are no proceedings or investigations
pending or threatened before any court, regulatory body, administrative agency
or other governmental instrumentality having jurisdiction over the Indenture
Trustee or its properties: (i) asserting the invalidity of this Indenture, (ii)
seeking to prevent the consummation of any of the transactions contemplated by
this Indenture or (iii) seeking any determination or ruling that might
materially and adversely affect the performance by the Indenture Trustee of its
obligations under, or the validity or enforceability of, this Indenture.

 

ARTICLE VII

Noteholders’ Lists and Reports

 

SECTION 7.1.  Issuer
To Furnish Indenture Trustee Names and Addresses of Noteholders.  The Issuer will furnish or cause to be
furnished to the Indenture Trustee: (a) not more than five days after the
earlier of: (i) each Record Date and (ii) three months after the last Record
Date, a list, in such form as the Indenture Trustee may reasonably require, of
the names and addresses of the Holders of Notes as of such Record Date, and (b)
at such other times as the Indenture Trustee may request in writing, within 30
days after receipt by the Issuer of any such request, a list of similar form
and content as of a date not more than 10 days prior to the time such list is
furnished; provided,
however, that so long as the Indenture Trustee is the Note
Registrar, no such list shall be required to be furnished.

 

36

 

SECTION 7.2.  Preservation
of Information; Communications to Noteholders.  (a)  
The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders of Notes
contained in the most recent list furnished to the Indenture Trustee as
provided in Section
7.1 and the names and addresses of Holders of Notes received by the
Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee may
destroy any list furnished to it as provided in Section 7.1 upon receipt of a new
list so furnished.

 

(b)  Three or more Noteholders, or one or more
Holder(s) of Notes evidencing at least 25% of the Outstanding Amount of the
Notes, may communicate pursuant to TIA § 312(b) with other Noteholders with
respect to their rights under this Indenture or under the Notes.

 

(c)  The Issuer, the Indenture Trustee and the
Note Registrar shall have the protection of TIA § 312(c).

 

SECTION 7.3.  Reports
by Issuer.  (a)   The Issuer shall:

 

(i)  file with the Indenture
Trustee, within 15 days after the Issuer is required to file the same with the
Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) that the
Issuer may be required to file with the Commission pursuant to Section 13 or
15(d) of the Exchange Act;

 

(ii)  file with the Commission,
in accordance with the rules and regulations prescribed from time to time by
the Commission, such additional information, documents and reports with respect
to compliance by the Issuer with the conditions and covenants of this Indenture
(with a copy of any such filings being delivered promptly to the Indenture
Trustee); and

 

(iii)  supply to the Indenture
Trustee (and the Indenture Trustee shall transmit by mail to all Noteholders
described in TIA § 313(c)) such summaries of any information, documents and
reports required to be filed by the Issuer pursuant to clauses (i) and (ii) as may be
required by the rules and regulations prescribed from time to time by the
Commission.

 

(b)  Unless the Issuer otherwise determines, the
fiscal year of the Issuer shall end on December 31 of each year.

 

SECTION 7.4.  Required
Filings.  In no event
shall the Indenture Trustee or any agent of the Indenture Trustee be obligated
or responsible for preparing, executing, filing or delivering in respect of the
Trust Estate or on behalf of another person, either (A) any report or filing
required or permitted by the SEC to be prepared, executed, filed or delivered
by or in respect of the Trust Estate or another person, or (B) any
certification in respect of any such report or filing.

 

37

 

ARTICLE VIII

Accounts, Disbursements and Releases

 

SECTION 8.1.  Collection
of Money.  Except as
otherwise expressly provided herein, the Indenture Trustee may demand payment
or delivery of, and shall receive and collect, directly and without
intervention or assistance of any fiscal agent or other intermediary, all money
and other property payable to or receivable by the Indenture Trustee pursuant
to this Indenture.  The Indenture Trustee
shall apply all such money received by it as provided in this Indenture. Except
as otherwise expressly provided in this Indenture, if any default occurs in the
making of any payment or performance under any agreement or instrument that is
part of the Collateral and the Trust Estate, the Indenture Trustee may take
such action as may be appropriate to enforce such payment or performance,
including the institution and prosecution of appropriate Proceedings.  Any such action shall be without prejudice to
any right to claim a Default or Event of Default under this Indenture and any
right to proceed thereafter as provided in Article V.

 

SECTION 8.2.  Trust
Accounts.  (a)   On or prior to the Closing Date, the Issuer
shall cause the Servicer to establish and maintain, in the name of the
Indenture Trustee, for the benefit of the Noteholders, the Certificateholders
and the Counterparty, the Trust Accounts as provided in Section 5.1 of the Sale
and Servicing Agreement.

 

(b)  On or before each Payment Date, the Total Distribution
Amount with respect to the preceding Collection Period will be deposited in the
Collection Account as provided in Section 5.2 of the Sale and Servicing
Agreement.  On or before each Payment
Date, the Noteholders’ Distributable Amount with respect to the preceding
Collection Period will be transferred to the Note Distribution Account as
provided in Sections 5.5 and 5.6 of the Sale and Servicing Agreement.

 

(c)  On each Payment Date and Redemption Date
prior to an Event of Default and acceleration of the Notes, the Indenture
Trustee shall distribute all amounts on deposit in the Note Distribution
Account to the Noteholders and the Counterparty in the following amounts and in
the following order of priority:

 

(i)  to the Counterparty for any
due and unpaid Net Swap Payment (including interest on any overdue Net Swap
Payment), if any, according to the amount due under the Interest Rate Swap
Agreement as a Net Swap Payment (including interest on any overdue Net Swap
Payment);

 

(ii)  with the same priority and
ratably in proportion to the Outstanding Amount of the Class A Notes and the
amounts due under clause (y) of
this Section 8.2(c)(ii), to (x)
the Class A Noteholders, the Class Interest Amount for each Class of Class A
Notes; provided,
that if there are not sufficient funds in the Note Distribution Account to pay
the entire amount of accrued and unpaid interest then due on such Notes, the
amount in the Note Distribution Account shall be applied to the payment of such
interest on such Notes pro rata on the basis of the total such interest due on
such Notes, and (y) the Counterparty, any Swap Termination Payment due to it
under the Class A Swap Agreement; provided,
that if any money or property remains after making the payments required by the
immediately preceding clause (x),
such money or property shall be used 

 

38

 

to
pay any remaining Class A Swap Termination Payments due and payable under the
Class A Swap Agreement before any such money or property shall be distributed
pursuant to Sections 8.2(c)(iii)
through (viii);

 

(iii)  to the Class B
Noteholders, the Class Interest Amount for the Class B Notes;

 

(iv)  to the Class C Noteholders,
the Class Interest Amount for the Class C Notes;

 

(v)  to the Class A Noteholders,
for payment of principal, in the following order of priority:

 

(A)  to the A-1
Noteholders, until the Outstanding principal balance of the A-1 Notes is
reduced to zero;

 

(B)  to the A-2
Noteholders, until the Outstanding principal balance of the A-2 Notes is
reduced to zero;

 

(C)  to the A-3
Noteholders, until the Outstanding principal balance of the A-3 Notes is
reduced to zero;

 

(D)  to the
Class A-4a Noteholders and the A-4b Noteholders, pro rata based on the
outstanding principal balance of A-4a Notes and A-4b Notes until the
outstanding principal balance of the A-4a Notes and the A-4b Notes are reduced
to zero;

 

(vi)  to the Class B Noteholders,
for payment of principal, until the Outstanding principal balance of the Class
B Notes is reduced to zero;

 

(vii)   to the Class C
Noteholders, for payment of principal, until the Outstanding principal balance
of the Class C Notes is reduced to zero; and

 

(viii)  thereafter, any excess
shall be deposited in the Certificate Distribution Account.

 

(d)  On the A-1 Note Final Scheduled Maturity
Date, the Indenture Trustee shall distribute to the Class A-1 Noteholders, from
the amount available in the Note Distribution Account, an amount equal to the
sum of (i) the aggregate accrued and unpaid interest on the Class A-1 Notes as
of the A-1 Note Final Scheduled Maturity Date, and (ii) the amount necessary to
reduce the outstanding principal amount of the Class A-1 Notes to zero.

 

(e)  On each Payment Date and Redemption Date,
after an Event of Default and acceleration of the Notes (and, if any Notes
remain outstanding after the Final Scheduled Maturity Date), the Indenture
Trustee shall distribute all amounts on deposit in the Note Distribution
Account to the Noteholders and the Counterparty
in the following amounts and in the following order of priority:

 

(i)            to the Counterparty for any due and
unpaid Net Swap Payment (including interest on any overdue Net Swap Payment),
if any, according to the amount due under 

 

39

 

the
Interest Rate Swap Agreement as a Net Swap Payment (including interest on any
overdue Net Swap Payment);

 

(ii)           with the same priority and ratably in
proportion to the Outstanding Amount of the Class A Notes and the amounts due
under clause (y) of this Section 8.2(e)(ii), to (x) the Class A
Noteholders, the Class Interest Amount for each Class of Class A Notes; provided, that if there are not sufficient
funds in the Note Distribution Account to pay the entire amount of accrued and
unpaid interest then due on such Notes, the amount in the Note Distribution
Account shall be applied to the payment of such interest on such Notes pro rata
on the basis of the total such interest due on such Notes, and (y) the
Counterparty, any Swap Termination Payment due to it under the Class A Swap
Agreement; provided, that if any
money or property remains after making the payments required by the immediately
preceding clause (x), such money
or property shall be used to pay any remaining Class A Swap Termination Payments
due and payable under the Class A Swap Agreement before any such money or
property shall be distributed pursuant to Sections
8.2(e)(iii) through (viii);

 

(iii)  to the Class A
Noteholders, for payment of principal, ratably, according to the amounts due
and payable on each Class of Class A Notes for principal, without preference or
priority of any kind, until the Outstanding principal balance of each Class of
Class A Notes has been reduced to zero;

 

(iv)  to the Class B Noteholders,
the Class Interest Amount for the Class B Notes;

 

(v)  to
the Class B Noteholders, for payment of principal, until the Outstanding
principal balance of the Class B Notes is reduced to zero;

 

(vi)  to the Class C Noteholders, the Class Interest Amount for the Class C
Notes;

 

(vii)  to the Class C
Noteholders, for payment of principal, until the Outstanding principal balance
of the Class C Notes is reduced to zero; and

 

(viii)  thereafter, any excess
shall be deposited in the Certificate Distribution Account.

 

SECTION 8.3.  General
Provisions Regarding Accounts. 
(a)   So long as no Default or
Event of Default shall have occurred and be continuing, all or a portion of the
funds in the Trust Accounts shall be invested in Eligible Investments and
reinvested by the Indenture Trustee upon Issuer Order, subject to the
provisions of Section 5.1(b) of the Sale and Servicing Agreement.  All income or other gain from investments of
moneys deposited in the Trust Accounts shall be deposited by the Indenture
Trustee in the Collection Account, and any loss or expenses resulting from such
investments shall be charged to such account. The Issuer will not direct the
Indenture Trustee to make any investment of any funds or to sell any investment
held in any of the Trust Accounts unless the security interest granted and
perfected in such account will continue to be perfected in such investment or
the proceeds of such sale, in either case without any further action by any
Person, and, in connection with any direction to the Indenture Trustee to make any
such investment or sale, if requested by the Indenture Trustee, the Issuer
shall deliver to the Indenture Trustee an Opinion of Counsel to such effect.

 

40

 

(b)  Subject to Section 6.1(c), the Indenture Trustee
shall not in any way be held liable for the selection of Eligible Investments
or by reason of any insufficiency in any of the Trust Accounts resulting from
any loss on any Eligible Investment included therein, except for losses
attributable to the Indenture Trustee’s failure to make payments on such
Eligible Investments issued by the Indenture Trustee, in its commercial
capacity as principal obligor and not as trustee, in accordance with their
terms.

 

(c)  If: (i) the Issuer shall have failed to give
investment directions for any funds on deposit in the Trust Accounts to the
Indenture Trustee by 11:00 a.m. (New York City time) (or such other time as may
be agreed by the Issuer and the Indenture Trustee) on any Business Day; or (ii)
a Default or Event of Default shall have occurred and be continuing with
respect to the Notes but the Notes shall not have been declared due and payable
pursuant to Section
5.2, or, if such Notes shall have been declared due and payable
following an Event of Default, but amounts collected or receivable from the
Trust Estate are being applied in accordance with Section 5.4(b) as if there had
not been such a declaration; then the Indenture Trustee shall, to the fullest
extent practicable, invest and reinvest funds in the Trust Accounts in the
Eligible Investments identified in clause (d) of the definition of Eligible
Investments.

 

SECTION 8.4.  Release
of Trust Estate.  (a)   Subject to the payment of its fees and
expenses pursuant to Section
6.7, the Indenture Trustee may, and when required by this Indenture
shall, execute instruments to release property from the Lien of this Indenture,
or convey the Indenture Trustee’s interest in the same, in a manner and under
circumstances that are not inconsistent with this Indenture.  No party relying upon an instrument executed
by the Indenture Trustee as provided in this Article shall be bound to
ascertain the Indenture Trustee’s authority, inquire into the satisfaction of
any conditions precedent or see to the application of any moneys.

 

(b)  The Indenture Trustee shall, at such time as
there are no Notes Outstanding and all sums due to the Indenture Trustee
pursuant to Section
6.7 have been paid, release any remaining portion of the Trust
Estate that secured the Notes from the Lien of this Indenture and release to
the Issuer or any other Person entitled thereto any funds then on deposit in
the Trust Accounts.  The Indenture
Trustee shall release property from the Lien of this Indenture pursuant to this
paragraph only upon receipt of an Issuer Request accompanied by an Officer’s
Certificate, an Opinion of Counsel, and (if required by the TIA) Independent
Certificates  in accordance with TIA §§
314(c) and 314(d)(1) meeting the applicable requirements of Section 11.1 or an Opinion of
Counsel in lieu of such Independent Certificates to the effect that the TIA
does not require any such Independent Certificates.

 

SECTION 8.5.  Opinion
of Counsel.  The Indenture
Trustee shall receive at least seven days’ notice when requested by the Issuer
to take any action pursuant to Section 8.4(a), accompanied by copies of any instruments
involved, and the Indenture Trustee shall also require, as a condition to such
action, an Opinion of Counsel stating the legal effect of any such action,
outlining the steps required to complete the same, and concluding that all
conditions precedent to the taking of such action have been complied with and
such action will not materially and adversely impair the security for the Notes
or the rights of the Noteholders in contravention of this Indenture; provided, however,
that such Opinion of Counsel shall not be required to express an opinion as to
the fair value of the Trust Estate. Counsel rendering any such opinion may
rely, 

 

41

 

without independent investigation, on the accuracy and
validity of any certificate or other instrument delivered to the Indenture
Trustee in connection with any such action. 
Notwithstanding anything herein to the contrary, any such Opinion of
Counsel shall include the Counterparty as an addressee thereof.

 

ARTICLE IX

Supplemental Indentures

 

SECTION 9.1.  Supplemental
Indentures Without Consent of Noteholders.  (a)  
Without the consent of the Holders of Notes but with prior written
notice to the Rating Agencies, the Issuer and the Indenture Trustee, when
authorized by an Issuer Order, at any time and from time to time, may enter
into one or more indentures supplemental hereto (which shall conform to the
Trust Indenture Act as in force at the date of the execution thereof), in form
satisfactory to the Indenture Trustee, for any of the following purposes:

 

(i)  to correct or amplify the
description of any property at any time subject to the Lien of this Indenture,
or better to assure, convey and confirm unto the Indenture Trustee any property
subject or required to be subjected to the Lien of this Indenture, or to
subject to the Lien of this Indenture additional property;

 

(ii)  to evidence the succession,
in compliance with the applicable provisions hereof, of another Person to the
Issuer, and the assumption by any such successor of the covenants of the Issuer
herein and in the Notes;

 

(iii)  to add to the covenants of
the Issuer, for the benefit of the Holders of Notes, or to surrender any right
or power herein conferred upon the Issuer;

 

(iv)  to convey, transfer,
assign, mortgage or pledge any property to or with the Indenture Trustee;

 

(v)  to replace the Spread
Account with another form of credit enhancement; provided, the Rating Agency
Condition is satisfied;

 

(vi)  to cure any ambiguity, to
correct or supplement any provision herein or in any supplemental indenture
that may be inconsistent with any other provision herein or in any supplemental
indenture or to make any other provisions with respect to matters or questions
arising under this Indenture or in any supplemental indenture; provided, that
such action shall not materially adversely affect the interests of the Holders
of Notes;

 

(vii)  to evidence and provide
for the acceptance of the appointment hereunder by a successor or additional
trustee with respect to the Notes or any class thereof and to add to or change
any of the provisions of this Indenture as shall be necessary to facilitate the
administration of the trusts hereunder by more than one trustee, pursuant to
the requirements of Article
VI; or

 

42

 

(viii)  to modify, eliminate or
add to the provisions of this Indenture to such extent as shall be necessary to
effect the qualification of this Indenture under the TIA or under any similar
federal statute hereafter enacted and to add to this Indenture such other
provisions as may be expressly required by the TIA.

 

The Trustee is
hereby authorized to join in the execution of any such supplemental indenture
and to make any further appropriate agreements and stipulations that may be
therein contained.

 

(b)  The Issuer and the Indenture Trustee, when
authorized by an Issuer Order, may, without the consent of any of the Holders
of Notes but with prior written notice to the Rating Agencies, enter into an
indenture or indentures supplemental hereto to cure any ambiguity, to correct
or supplement any provisions in this Indenture or for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or of modifying in any manner the rights of the Holders of Notes
under this Indenture; provided,
however, that such action shall not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Noteholder.

 

SECTION 9.2.  Supplemental
Indentures With Consent of Noteholders.  The Issuer and the Indenture Trustee, when
authorized by an Issuer Order, may, with prior written notice to the Rating
Agencies and with the consent of the Holders of Notes evidencing not less than
a majority of the Outstanding Amount of the Notes, by Act of such Holders
delivered to the Issuer and the Indenture Trustee, enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture
or of modifying in any manner the rights of the Holders of Notes under this
Indenture; provided,
however, that no such supplemental indenture shall, without the
consent of the Holder of each Outstanding Note affected thereby:

 

(i)  change the date of payment
of any installment of principal of or interest on any Note, or reduce the
principal amount thereof, the interest rate thereon or the Redemption Price
with respect thereto, change the provisions of this Indenture relating to the
application of collections on, or the proceeds of the sale of, the Trust Estate
to the payment of principal of or interest on the Notes, or change any place of
payment where, or the coin or currency in which, any Note or the interest
thereon is payable, or impair the right to institute suit for the enforcement
of the provisions of this Indenture requiring the application of funds
available therefor, as provided in Article V, to the payment of any such amount due on or after
the respective due dates thereof (or, in the case of redemption, on or after
the Redemption Date);

 

(ii)  reduce the percentage of
the Outstanding Amount, the consent of the Holders of which is required for any
such supplemental indenture, or the consent of the Holders of which is required
for any waiver of compliance with certain provisions of this Indenture or
certain defaults hereunder and their consequences provided for in this
Indenture;

 

(iii)  modify or alter the
provisions of the proviso to the definition of “Outstanding”;

 

43

 

(iv)  reduce the percentage of
the Outstanding Amount required to direct the Indenture Trustee to direct the
Issuer to sell or liquidate the Trust Estate pursuant to Section 5.4;

 

(v)  modify any provision of this
Section except to increase any percentage specified herein or to provide that
certain additional provisions of this Indenture or the Basic Documents cannot
be modified or waived without the consent of the Holder of each Outstanding
Note affected thereby;

 

(vi)  modify any of the
provisions of this Indenture in such manner as to affect the calculation of the
amount of any payment of interest or principal due on any Note on any Payment
Date (including the calculation of any of the individual components of such
calculation) or to affect the rights of the Holders of Notes to the benefit of
any provisions for the mandatory redemption of the Notes contained herein; or

 

(vii)  permit the creation of any
Lien ranking prior to or on a parity with the Lien of this Indenture with
respect to any part of the Trust Estate or, except as otherwise permitted or
contemplated herein, terminate the Lien of this Indenture on any property at
any time subject hereto or deprive any Holder of Notes of the security provided
by the Lien of this Indenture; provided  further, if any such amendment and/or supplement of either
this Indenture or any other Basic Document would either: (a) adversely affect
the Counterparty’s rights or obligations under the Class A-4a Swap Agreement;
or (b) adversely modify the obligations of, or adversely impact the ability of,
the Issuer to fully perform any of the Issuer’s obligations under such Swap
Agreement, the Issuer and the Indenture Trustee shall be required first to
obtain the written consent of the Counterparty, before entering into any such
amendment or supplement.

 

It shall not be
necessary for any Act of the Noteholders under this Section to approve the
particular form of any proposed supplemental indenture, but it shall be
sufficient if such Act shall approve the substance thereof.  The manner of obtaining such consents (and
any other consents of Noteholders provided for in this Indenture or in any
other Basic Document) and of evidencing the authorization of the execution
thereof by Noteholders shall be subject to such reasonable requirements as the
Indenture Trustee may provide.

 

Promptly after the
execution by the Issuer and the Indenture Trustee of any supplemental indenture
pursuant to this Section, the Indenture Trustee shall mail to the Holders of
the Notes to which such amendment or supplemental indenture relates a notice
setting forth in general terms the substance of such supplemental indenture.  Any failure of the Indenture Trustee to mail
such notice, or any defect therein, shall not, however, in any way impair or
affect the validity of any such supplemental indenture.

 

SECTION 9.3.  Execution
of Supplemental Indentures. 
In executing, or permitting the additional trusts created by, any
supplemental indenture permitted by this Article IX or the modifications
thereby of the trusts created by this Indenture, the Indenture Trustee shall be
entitled to receive, and, subject to Sections 6.1 and 6.2, shall be fully protected in relying upon, an Opinion of
Counsel stating that the execution of such supplemental indenture is authorized
or permitted by this Indenture.  The
Indenture Trustee may, but shall not be obligated to, enter into 

 

44

 

any such supplemental indenture that affects the
Indenture Trustee’s own rights, duties, liabilities or immunities under this
Indenture or otherwise.

 

SECTION 9.4.  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 with respect to the Notes affected thereby, and
the respective rights, limitations of rights, obligations, duties, liabilities
and immunities under this Indenture of the Indenture Trustee, the Issuer and
the Holders of the Notes 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 9.5.  Conformity
with Trust Indenture Act. 
Every amendment of this Indenture and every supplemental indenture
executed pursuant to this Article IX shall conform to the requirements of the Trust
Indenture Act as then in effect so long as this Indenture shall then be
qualified under the Trust Indenture Act.

 

SECTION 9.6.  Reference
in Notes to Supplemental Indentures.  Notes authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article may, and if
required by the Indenture Trustee shall, bear a notation in form approved by
the Indenture Trustee as to any matter provided for in such supplemental
indenture.  If the Issuer or the
Indenture Trustee shall so determine, new Notes so modified as to conform, in
the opinion of the Indenture Trustee and the Issuer, to any such supplemental
indenture may be prepared and executed by the Issuer and authenticated and
delivered by the Indenture Trustee in exchange for Outstanding Notes.

 

SECTION 9.7.    Amendment without Consent.  Notwithstanding anything herein to the
contrary, any term or provision of this Agreement may be amended by the Issuer
and the Indenture Trustee without the consent of the Noteholders or any other
Person to add, modify or eliminate any provisions as may be necessary or
advisable in order to comply with or obtain more favorable treatment under or
with respect to any law or regulation or any accounting rule or principle
(whether now or in the future in effect); it being a condition to any such
amendment that the Rating Agency Condition shall have been satisfied.

 

ARTICLE X

Redemption of Notes

 

SECTION 10.1.  Redemption.  (a)  
The Notes are subject to redemption in whole, but not in part, at the
direction of CNHCA pursuant to Section 9.1(a) of the Sale and Servicing Agreement, on any
Payment Date on which CNHCA exercises its option to purchase the Trust Estate
pursuant to said Section
9.1(a), for a purchase price equal to the Redemption Price; provided, however,
that the Issuer has available funds sufficient to pay the Redemption
Price.  The Servicer or the Issuer shall
furnish the Rating Agencies notice of such redemption.  If such Notes are to be redeemed pursuant to
this Section 10.1,
CNHCA or the Issuer shall furnish notice of such election to the Indenture
Trustee not later than 25 days prior to the Redemption Date and 

 

45

 

the Issuer shall deposit with the Indenture Trustee in
the Note Distribution Account the Redemption Price of the Notes to be redeemed.

 

(b) 
Reserved.

 

SECTION 10.2.  Form of
Redemption Notice.  Notice
of redemption under Section 10.1 shall be given by the Indenture Trustee by
first-class mail, postage prepaid, mailed not less than five Business Days
prior to the applicable Redemption Date to each Holder of Notes, as of the
close of business on the Record Date preceding the applicable Redemption Date,
at such Holder’s address appearing in the Note Register.

 

All notices of redemption shall state:

 

(i)  the Redemption
Date;

 

(ii)  the Redemption
Price;

 

(iii)  the place
where such Notes are to be surrendered for payment of the Redemption Price
(which shall be the office or agency of the Issuer to be maintained as provided
in Section 3.2); and

 

(iv)  the CUSIP
numbers of the affected Notes.

 

Notice of redemption of the Notes shall be given by
the Indenture Trustee in the name and at the expense of the Issuer.  Failure to give notice of redemption, or any
defect therein, to any Holder of any Note shall not impair or affect the
validity of the redemption of any other Note.

 

SECTION 10.3.  Notes
Payable on Redemption Date. 
The Notes to be redeemed shall, following notice of redemption pursuant
to this Article, become due and payable on the Redemption Date at the
Redemption Price and (unless the Issuer shall default in the payment of the
Redemption Price) no interest shall accrue on the Redemption Price for any period
after the date to which accrued interest is calculated for purposes of
calculating the Redemption Price.

 

ARTICLE XI

Miscellaneous

 

SECTION 11.1.  Compliance
Certificates and Opinions, etc.    (a)  
Upon any application or request by the Issuer to the Indenture Trustee
to take any action under this Indenture, the Issuer shall furnish to the
Indenture Trustee: (i) an Officer’s Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with, (ii) an Opinion of Counsel
stating that in the opinion of such counsel all such conditions precedent, if
any, have been complied with and (iii) (if required by the TIA) an
Independent Certificate from a firm of certified public accountants meeting the
applicable requirements of this Section, except that, in the case of any such
application or request as to

 

46

 

which the furnishing of such documents is specifically
required by this Indenture, no additional certificate or opinion need be
furnished.

 

Every certificate or opinion with respect to
compliance with a condition or covenant provided for in this Indenture shall
include:

 

(w) a statement that each signatory of such
certificate or opinion has read or has caused to be read such covenant or
condition and the definitions herein relating thereto;

 

(x) 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;

 

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

 

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

 

(b) 
(i)   Prior to the deposit of any
Collateral or other property or securities with the Indenture Trustee that is
to be made the basis for the release of any property or securities subject to
the Lien of this Indenture, the Issuer shall, in addition to any obligation
imposed in Section 11.1(a) or
elsewhere in this Indenture, furnish to the Indenture Trustee an Officer’s
Certificate certifying or stating the opinion of each person signing such
certificate as to the fair value (within 90 days after such deposit) to the
Issuer of the Collateral or other property or securities to be so deposited.

 

(ii)  Whenever the
Issuer is required to furnish to the Indenture Trustee an Officer’s Certificate
described in clause
(i), the Issuer shall also deliver to the Indenture Trustee an
Independent Certificate as to the same matters, if the fair value to the Issuer
of the Collateral or other property or securities to be so deposited and of all
other such Collateral or other property or securities made the basis of any
such withdrawal or release since the commencement of the then-current fiscal
year of the Issuer, as set forth in the certificates delivered pursuant to clause (i) and
this clause
(ii), is 10% or more of the Outstanding Amount of the Notes, but
such a certificate need not be furnished with respect to any Collateral or other
property or securities so deposited if the fair value thereof to the Issuer as
set forth in the related Officer’s Certificate is (A) less than $25,000 or
(B) less than one percent of the then Outstanding Amount of the Notes.

 

(iii)  Other than
with respect to property as contemplated by clause (v), whenever any
Collateral or other property or securities are to be released from the Lien of
this Indenture, the Issuer shall also furnish to the Indenture Trustee an
Officer’s Certificate certifying or stating the opinion of each person signing
such certificate as to the fair value (within 90 days after such release) of
the Collateral or other property or securities proposed to be released and
stating that in the opinion of such person the proposed release will not impair
the security under this Indenture in contravention of the provisions hereof.

 

47

 

(iv)  Whenever the
Issuer is required to furnish to the Indenture Trustee an Officer’s Certificate
certifying or stating the opinion of any signer thereof as to the matters
described in clause
(iii), the Issuer shall also furnish to the Indenture Trustee an
Independent Certificate as to the same matters if the fair value to the Issuer
of the Collateral or other property or securities and of all other property,
other than property as contemplated by clause (v), or securities
released from the Lien of this Indenture since the commencement of the
then-current fiscal year, as set forth in the certificates required by clause (iii) and
this clause
(iv), equals 10% or more of the Outstanding Amount of the Notes, but
such certificate need not be furnished in the case of any release of Collateral
or other property or securities if the fair value thereof to the Issuer as set
forth in the related Officer’s Certificate is (A) less than $25,000 or (B) less
than one percent of the then Outstanding Amount of the Notes.

 

(v)  Notwithstanding
Section 2.9
or any other provision of this Section, the Issuer may, without
compliance with the requirements of the other provisions of this Section: (A) collect,
liquidate, sell or otherwise dispose of Receivables and Financed Equipment as
and to the extent permitted or required by the Basic Documents and (B) make
cash payments out of the Trust Accounts as and to the extent permitted or
required by the Basic Documents so long as the Issuer shall deliver to the
Indenture Trustee every six months, commencing [Month] 200X, an Officer’s
Certificate of the Issuer stating that all such dispositions of Collateral that
occurred since the execution of the previous such Officer’s Certificate (or for
the first such Officer’s Certificate, since the Closing Date) were in the
ordinary course of the Issuer’s business and that the proceeds thereof were
applied in accordance with the Basic Documents.

 

SECTION 11.2.  Form of
Documents Delivered to Indenture Trustee.  In any case where several matters are
required to be certified by, or covered by an opinion of, any specified Person,
it is not necessary that all such matters be certified by, or covered by the
opinion of, only one such Person, or that they be so certified or covered by
only one document, but one such Person may certify or give an opinion with
respect to some matters and one or more other such Persons as to other matters,
and any such Person may certify or give an opinion as to such matters in one or
several documents.

 

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

 

48

 

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

 

Whenever in this Indenture, in connection with any
application, certificate or report to the Indenture Trustee, it is provided
that the Issuer shall deliver any document as a condition of the granting of
such application, or as evidence of the Issuer’s compliance with any term
hereof, it is intended that the truth and accuracy, at the time of the granting
of such application or at the effective date of such certificate or report (as
the case may be), of the facts and opinions stated in such document shall in
such case be conditions precedent to the right of the Issuer to have such application
granted or to the sufficiency of such certificate or report. The foregoing
shall not, however, be construed to affect the Indenture Trustee’s right to
rely upon the truth and accuracy of any statement or opinion contained in any
such document as provided in Article VI.

 

SECTION 11.3.  Acts of
Noteholders.  (a)   Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by Noteholders may be embodied in and evidenced by one or
more instrument(s) of substantially similar tenor signed by such Noteholders in
person or by agents duly appointed in writing; and except as herein otherwise
expressly provided, such action shall become effective when such instrument(s)
are delivered to the Indenture Trustee, and, where it is hereby expressly
required, to the Issuer. Such instrument(s) (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the “Act” of the Noteholders
signing such instrument(s). Proof of execution of any such instrument or of a
writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 6.1) conclusive in favor of the Indenture
Trustee and the Issuer, if made in the manner provided in this Section.

 

(b) 
The fact and date of the execution by any Person of any such instrument or
writing may be proved in any manner that the Indenture Trustee deems
sufficient.

 

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

 

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

 

SECTION 11.4.  Notices,
etc., to the Indenture Trustee, Issuer and Rating Agencies.  Any request, demand, authorization,
direction, notice, consent, waiver or Act of Noteholders, or other documents
provided or permitted by this Indenture, shall be in writing and, if such
request, demand, authorization, direction, notice, consent, waiver or Act of
Noteholders is to be made upon, given or furnished to or filed with:

 

(a)  the Indenture Trustee by any Noteholder or
by the Issuer, shall be sufficient for every purpose hereunder if made, given,
furnished or filed in writing to or with the Indenture Trustee at its Corporate
Trust Office, or

 

49

 

(b)  the Issuer by the Indenture Trustee or by
any Noteholder, shall be sufficient for every purpose hereunder if in writing
and mailed, first-class, postage prepaid, to the Issuer addressed to: CNH
Equipment Trust 200X-Y, in care of The Bank of New York, 101 Barclay Street,
Floor 8W, New York, New York  10286,
Attention: Corporate Trust Administration - Asset Backed Finance Unit, and to
New Holland Credit Company, LLC, as Administrator, 33 South Railroad Avenue,
New Holland Pennsylvania, Attention: Finance Manager; with a copy to: New
Holland Credit Company, LLC, 100 South Saunders Road, Lake Forest, Illinois
60045, Attention: Senior Managing Attorney, or at any other address previously
furnished in writing to the Indenture Trustee by the Issuer or the
Administrator. The Issuer shall promptly transmit any notice received by it
from the Noteholders to the Indenture Trustee and the Counterparty, or

 

(c)  the Counterparty by the Issuer or the
Indenture Trustee, shall be sufficient for every purpose hereunder if in
writing and mailed, first-class postage prepaid, hand delivered or sent by
overnight courier service or by telecopy in legible form to the Counterparty
addressed to: BNP Paribas, 787 Seventh Avenue, New York, New York  10019, Attention:  Legal and Transaction Management Group –
ISDA; with a copy to:  BNP Paribas, Paris
20 boulevard des Italiens, 75009 Paris, France, Attention:  Legal and Transaction Management Group - ISDA, or at any other address previously furnished in writing to
the Issuer or the Indenture Trustee by the Counterparty.

 

Notices required to be given to the Rating Agencies by
the Issuer, the Indenture Trustee or the Trustee shall be in writing,
personally delivered or mailed by certified mail, return receipt requested, to
their respective addresses set forth in Section 10.3 of the Sale and
Servicing Agreement.

 

SECTION 11.5.  Notices
to Noteholders; Waiver. 
Where this Indenture provides for notice to Noteholders of any event,
such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first-class, postage prepaid to each
Noteholder affected by such event, at his address as it appears on the Note
Register, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice. In any case where notice to
Noteholders is given by mail, neither the failure to mail such notice nor any
defect in any notice so mailed to any particular Noteholder shall affect the
sufficiency of such notice with respect to other Noteholders, and any notice
that is mailed in the manner herein provided shall conclusively be presumed to
have been duly given.

 

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

 

In case, by reason of the suspension of regular mail
service, it shall be impractical to mail notice of any event to Noteholders
when such notice is required to be given pursuant to this Indenture, then any
manner of giving such notice as shall be satisfactory to the Indenture Trustee
shall be deemed to be a sufficient giving of such notice.

 

50

 

Where this Indenture provides for notice to the Rating
Agencies, failure to give such notice shall not affect any other rights or
obligations created hereunder, and shall not under any circumstance constitute
a Default or Event of Default.

 

SECTION 11.6.  Alternate
Payment and Notice Provisions. 
Notwithstanding any provision of this Indenture or any of the Notes to
the contrary, the Issuer may enter into any agreement with any Holder of a Note
providing for a method of payment, or notice by the Indenture Trustee or any
Paying Agent to such Holder, that is different from the methods provided for in
this Indenture or the Notes for such payments or notices.  The Issuer will furnish to the Indenture
Trustee a copy of each such agreement and the Indenture Trustee will cause
payments to be made and notices to be given in accordance with such agreements.

 

SECTION 11.7.  Conflict
with Trust Indenture Act. 
If any provision hereof limits, qualifies or conflicts with another
provision hereof that is required to be included in this Indenture by the Trust
Indenture Act, such required provision shall control.

 

The provisions of TIA §§ 310 through 317 that
impose duties on any Person (including the provisions automatically deemed
included herein unless expressly excluded by this Indenture) are a part of and
govern this Indenture, whether or not physically contained herein.

 

SECTION 11.8.  Effect
of Headings and Table of Contents.  The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect
the construction hereof.

 

SECTION 11.9.  Successors
and Assigns.  All
covenants and agreements in this Indenture and the Notes by the Issuer shall
bind its successors and assigns, whether so expressed or not.  All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents of the
Indenture Trustee.

 

SECTION 11.10.  Severability.  Any provision of this Indenture or the Notes
that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or of the
Notes, as applicable, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

SECTION 11.11.  Benefits
of Indenture.  Nothing in
this Indenture or in the Notes, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder, the Noteholders,
any other party secured hereunder and any other Person with an ownership
interest in any part of the Trust Estate, any benefit or any legal or equitable
right, remedy or claim under this Indenture.

 

SECTION 11.12.  Legal
Holidays.  In any case
where the date on which any payment is due shall not be a Business Day, then
(notwithstanding any other provision of the Notes or this Indenture) payment
need not be made on such date, but may be made on the next Business Day with
the same force and effect as if made on the date on which nominally due, and no
interest shall accrue for the period from and after any such nominal date.

 

51

 

SECTION 11.13.  Governing
Law.  This Indenture shall
be construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder shall be determined in accordance with such
laws.

 

SECTION 11.14.  Counterparts.  This Indenture may be executed in any number
of counterparts, each of which when so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

 

SECTION 11.15.  Recording
of Indenture.  If this
Indenture is subject to recording in any public recording offices, such
recording is to be effected by the Issuer and, at its expense, accompanied by
an Opinion of Counsel (which may be counsel to the Indenture Trustee or any
other counsel reasonably acceptable to the Indenture Trustee) to the effect
that such recording is necessary either for the protection of the Noteholders
or any other Person secured hereunder or for the enforcement of any right or
remedy granted to the Indenture Trustee under this Indenture.

 

SECTION 11.16.  Trust
Obligation.  No recourse
may be taken, directly or indirectly, with respect to the obligations of the
Issuer, the Trustee or the Indenture Trustee on the Notes or under this
Indenture or any certificate or other writing delivered in connection herewith
or therewith, against: (i) the Indenture Trustee or the Trustee in their
individual capacities, (ii) any owner of a beneficial interest in the
Issuer or (iii) any partner, owner, beneficiary, officer, director, employee
or agent of: (a) the Indenture Trustee or the Trustee in their individual
capacities, (b) any owner of a beneficial interest in the Issuer, the
Trustee or the Indenture Trustee or (c) of any successor or assign of the
Indenture Trustee or the Trustee in their individual capacities, except as any
such Person may have expressly agreed (it being understood that the Indenture
Trustee and the Trustee have no such obligations in their individual
capacities) and except that any such partner, owner or beneficiary shall be
fully liable, to the extent provided by applicable law, for any unpaid
consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity. For all purposes of this Indenture,
in the performance of any duties or obligations of the Issuer hereunder, the
Trustee shall be subject to, and entitled to the benefits of, Articles VI, VII
and VIII of the Trust Agreement.

 

SECTION 11.17.  No
Petition.  The Indenture
Trustee, by entering into this Indenture, and each Noteholder, by accepting a
Note, hereby covenant and agree that they will not at any time institute
against the Seller or the Issuer, or solicit or join or cooperate with or
encourage any institution against the Seller or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or State bankruptcy or similar law
in connection with any obligations relating to the Notes, this Indenture or any
of the Basic Documents. The foregoing shall not limit the rights of the
Indenture Trustee to file any claim in or otherwise take any action with
respect to any insolvency proceeding that was instituted against the Issuer by
any Person other than the Indenture Trustee.

 

SECTION 11.18.  Inspection.  The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee, during the
Issuer’s normal business hours, to examine all the books of account, records,
reports and other papers of the Issuer, to make copies and extracts therefrom,
to cause such books to be audited by Independent certified public accountants,
and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s
officers,

 

52

 

employees and Independent certified public
accountants, all at such reasonable times and as often as may be reasonably
requested. The Indenture Trustee shall and shall cause its representatives to
hold in confidence all such information; provided, however, that the
foregoing shall not be construed to prohibit: (i) disclosure of any and
all information that is or becomes publicly known, or information obtained by
the Indenture Trustee from sources other than the Issuer or Servicer, (ii) disclosure
of any and all information: (A) if required to do so by any applicable
statute, law, rule or regulation, (B) to any government agency or
regulatory or self-regulatory body having or claiming authority to regulate or
oversee any aspects of the Indenture Trustee’s business or that of its
Affiliates, (C) pursuant to any subpoena, civil investigative demand or
similar demand or request of any court, regulatory authority, arbitrator or
arbitration to which the Indenture Trustee or an Affiliate or any officer,
director, employee or shareholder thereof is subject, (D) in any
preliminary or final offering circular, registration statement or contract or
other document pertaining to the transactions contemplated by the Indenture and
approved in advance by the Issuer or (E) to any Affiliate, independent or
internal auditor, agent, employee or attorney of the Indenture Trustee having a
need to know the same; provided, that the Indenture Trustee advises such recipient
of the confidential nature of the information being disclosed and such
recipient agrees to keep such information confidential, and provided further, that the Indenture
Trustee promptly notifies the Issuer of any disclosure of such information that
it is required to make pursuant to the preceding clause (A), (B) or (C) so
that the Issuer may seek appropriate protective orders or restrictions on the
disclosure of the information involved; (iii) any other disclosure
authorized by the Issuer or the Servicer or (iv) disclosure to the other
parties to the transactions contemplated by the Basic Documents.

 

SECTION 11.19.  Subordination.  Issuer and each Noteholder by accepting a
Note acknowledge and agree that such Note represents indebtedness of Issuer and
does not represent an interest in any assets (other than the Trust Estate) of
CNHCR (including by virtue of any deficiency claim in respect of obligations
not paid or otherwise satisfied from the Trust Estate and proceeds
thereof).  In furtherance of and not in
derogation of the foregoing, to the extent CNHCR enters into other
securitization transactions, Issuer as well as each Noteholder by accepting a
Note acknowledge and agree that it shall have no right, title or interest in or
to any assets (or interests therein) (other than Trust Estate) conveyed or purported
to be conveyed by CNHCR to another securitization trust or other Person or
Persons in connection therewith (whether by way of a sale, capital contribution
or by virtue of the granting of a lien) (“Other Assets”).  To the extent that, notwithstanding the
agreements and provisions contained in the preceding sentences of this
subsection, Issuer or any Noteholder either (i) asserts an interest or
claim to, or benefit from, Other Assets, whether asserted against or through
CNHCR or any other Person owned by CNHCR, or (ii) is deemed to have any
such interest, claim or benefit in or from Other Assets, whether by operation
of law, legal process, pursuant to applicable provisions of insolvency laws or
otherwise (including by virtue of Section 1111(b) of the Bankruptcy
Code or any successor provision having similar effect under the Bankruptcy
Code), and whether deemed asserted against or through CNHCR or any other Person
owned by CNHCR, then Issuer and each Noteholder by accepting a Note further
acknowledge and agree that any such interest, claim or benefit in or from Other
Assets is and shall be expressly subordinated to the indefeasible payment in
full of all obligations and liabilities of CNHCR which, under the terms of the
relevant documents relating to the securitization of such Other Assets, are
entitled to be paid from, entitled to the benefits of, or otherwise secured by
such Other Assets (whether or not any such entitlement or security interest is
legally perfected or otherwise entitled to a priority of

 

53

 

distribution or application under applicable law,
including insolvency laws, and whether asserted against CNHCR or any other
Person owned by CNHCR), including, the payment of post-petition interest on
such other obligations and liabilities. 
This subordination agreement shall be deemed a subordination agreement
within the meaning of Section 510(a) of the Bankruptcy Code.  Each Noteholder further acknowledges and
agrees that no adequate remedy at law exists for a breach of this Section 11.19 and
the terms of this Section 11.19
may be enforced by an action for specific performance.

 

SECTION 11.20.  Information Requests.  The parties hereto shall provide any
information reasonably requested by the Issuer or any of its Affiliates, at the
expense of the Issuer or any of its Affiliates, as applicable, in order to
comply with or obtain more favorable treatment under any current or future law,
rule, regulation, accounting rule or principle.

 

[the remainder of this page intentionally left
blank]

 

54

 

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

 

	
   

  	
  CNH EQUIPMENT TRUST
  200X-Y;

  
	
   

  	
   

  
	
   

  	
  By:

  	
  The Bank Of New York,

  
	
   

  	
   

  	
  not in its individual capacity but solely as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [JPMORGAN CHASE BANK, N.A.]

  
	
   

  	
   

  	
  not in its individual capacity but solely

  
	
   

  	
   

  	
  as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

S-1

 

EXHIBIT A-1

to Indenture

 

FORM OF A-1 NOTES

 

	
  REGISTERED

  	
  $               (1)

  
	
  No. R-1

  	
  CUSIP
  NO.                    
  

  

 

Unless this Note is presented by an authorized representative
of The Depository Trust Company, a New York corporation (“DTC”), to the Issuer or
its agent for registration of transfer, exchange or payment, and any Note
issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS
AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE
AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

 

CNH EQUIPMENT TRUST
200X-Y

 

             %
CLASS A-1 ASSET BACKED NOTES

 

CNH Equipment Trust 200X-Y, a trust organized and
existing under the laws of the State of Delaware (including any successor, the “Issuer”), for value
received, hereby promises to pay to CEDE & CO., or registered assigns,
the principal sum of  ($           ),
partially payable on each Payment Date in an amount equal to the aggregate
amount, if any, payable from the Note Distribution Account in respect of
principal on the A-1 Notes pursuant to Section 3.1 of the Indenture; provided, however,
that the entire unpaid principal amount of this Note shall be due and payable
on the earlier of the [Month Day], 200X Payment Date and the Redemption Date,
if any, pursuant to Section 10.1(a) of the Indenture. The Issuer will
pay interest on this Note at the rate per annum shown above, on each Payment
Date until the principal of this Note is paid or made available for payment, on
the principal amount of this Note outstanding on the preceding Payment Date
(after giving effect to all payments of principal made on the preceding Payment
Date), subject to certain limitations contained in Section 3.1 of the
Indenture. Interest on this Note will accrue for each Payment Date from the
most recent Payment Date on which interest has been paid to but excluding the
then current Payment Date or, if no interest has yet been paid, from the date
hereof. Interest will be computed on the basis of a 360-day year and the actual

 

(1)                                  Denominations
of $1,000 and in greater whole-dollar denominations in excess thereof

 

 

number of days in the
applicable Interest Period. Such principal of and interest on this Note shall
be paid in the manner specified in the Indenture.

 

The principal of and interest on this Note are payable
in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts. All payments
made by the Issuer with respect to this Note shall be applied first to interest
due and payable on this Note as provided above and then to the unpaid principal
of this Note.

 

Reference is made to the further provisions of this
Note set forth on the reverse hereof, which shall have the same effect as
though fully set forth on the face of this Note.

 

Unless the certificate of authentication hereon has
been executed by the Indenture Trustee by manual signature, this Note shall not
be entitled to any benefit under the Indenture referred to on the reverse
hereof, or be valid or obligatory for any purpose.

 

 

IN WITNESS WHEREOF, the Issuer has caused this
instrument to be signed, manually or in facsimile, by its Authorized Officer.

 

Dated: [Month Day], 200X

 

	
   

  	
  CNH EQUIPMENT
  TRUST 200X-Y

  
	
   

  	
   

  
	
   

  	
  By:

  	
  The Bank of New York,

  
	
   

  	
   

  	
  not in its individual capacity but solely as Trustee

  
	
   

  	
   

  	
  under the Trust Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  	
   

  	
   

  
						

 

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

This is one of the Notes designated above and referred
to in the within-mentioned Indenture.

 

Dated:  [Month
Day], 200X

 

 

	
   

  	
  [JPMORGAN
  CHASE BANK, N.A.]

  
	
   

  	
  not in its individual capacity but solely as
  Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

 

[REVERSE OF NOTE]

 

This Note is one of a duly authorized issue of Notes
of the Issuer, designated as its           %
Class A-1 Asset Backed Notes (herein called the “A-1 Notes” or the “Notes”), all issued under
an Indenture dated as of [Month Day], 200X (such Indenture, as supplemented or
amended, is herein called the “Indenture”)
between the Issuer and [JPMorgan Chase Bank, N.A.], not in its individual
capacity but solely as trustee (the “Indenture Trustee”, which term
includes any successor Indenture Trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights and obligations thereunder of the Issuer,
the Indenture Trustee and the Holders of the Notes. The Notes are subject to
all terms of the Indenture. All terms used in this Note that are not otherwise
defined herein and that are defined in the Indenture shall have the meanings
assigned to them in or pursuant to the Indenture.

 

The Notes, the A-2 Notes, the A-3 Notes, the A-4a
Notes and the A-4b Notes are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture.

 

The Issuer shall pay interest on overdue installments
of interest at the A-1 Note Rate to the extent lawful.

 

Each Noteholder or Note Owner, by acceptance of a
Note, or, in the case of a Note Owner, a beneficial interest in the Note,
covenants and agrees that no recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer or the Indenture Trustee on the
Notes or under the Indenture or any certificate or other writing delivered in connection
therewith, against: (i) the Indenture Trustee or the Trustee in their
individual capacities, (ii) any owner of a beneficial interest in the
Issuer or (iii) any partner, owner, beneficiary, agent, officer, director
or employee of: (a) the Indenture Trustee or the Trustee in their
individual capacities, (b) any holder of a beneficial interest in the
Issuer, the Trustee or the Indenture Trustee or of (c) any successor or
assign of the Indenture Trustee or the Trustee in their individual capacities,
except as any such Person may have expressly agreed and except that any such
partner, owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such partner,
owner or beneficiary.

 

It is the intent of the Seller, the Servicer, the
Noteholders and the Note Owners that, for purposes of federal and State income
tax and any other tax measured in whole or in part by income, the Notes qualify
as indebtedness of the Trust. Each Noteholder or Note Owner, by acceptance of a
Note, or, in the case of a Note Owner, a beneficial interest in a Note, agrees
to treat, and to take no action inconsistent with the treatment of, the Notes
for such tax purposes as indebtedness of the Trust.

 

Each Noteholder or Note Owner, by acceptance of a
Note, or, in the case of a Note Owner, a beneficial interest in a Note,
covenants and agrees that by accepting the benefits of the Indenture that such
Noteholder will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy,
reorganization or

 

 

arrangement, insolvency or liquidation proceedings under any United
States federal or State bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the Basic Documents.

 

Each Noteholder or Note Owner, by acceptance
of a Note, or in the case of Note Owner, a beneficial interest in the Note,
represents that either (a) it is not (i) an employee benefit plan (as
defined in Section 3(3) of ERISA) that is subject to the provisions
of Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of
the Code, (iii) any entity whose underlying assets include plan assets of
any of the foregoing (each a “Benefit Plan”), or (iv) a governmental plan
(as defined in Section 3(32) of ERISA) that is subject to any law
substantially similar to ERISA or Section 4975 of the Code or (b) the
purchase and holding of the Note, or a beneficial interest therein, will not
result in a non-exempt prohibited transaction under Section 406 of ERISA, Section 4975
of the Code or any substantially similar applicable law.

 

This Note and the Indenture shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

 

No reference herein to the Indenture and no
provision of this Note or of the Indenture shall alter or impair the obligation
of the Issuer, which is absolute and unconditional, to pay the principal of and
interest on this Note at the times, place and rate, and in the coin or currency,
herein prescribed.

 

Anything herein to the contrary
notwithstanding, except as expressly provided in the Basic Documents, neither
[JPMorgan Chase Bank, N.A.], in its individual capacity, any owner of a
beneficial interest in the Issuer, nor any of their respective partners,
beneficiaries, agents, officers, directors, employees, successors or assigns
shall be personally liable for, nor shall recourse be had to any of them for,
the payment of principal of or interest on, or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in
this Note or the Indenture, it being expressly understood that said covenants,
obligations and indemnifications have been made by the Indenture Trustee for
the sole purposes of binding the interests of the Indenture Trustee in the
assets of the Issuer. The Holder of this Note by the acceptance hereof, and
each Note Owner by the acceptance of a beneficial interest herein, each agrees
that, except as expressly provided in the Basic Documents, in the case of an
Event of Default under the Indenture, the Holder and Note Owner shall have no
claim against any of the foregoing for any deficiency, loss or claim therefrom;
provided,
however, that nothing contained herein shall be taken to prevent
recourse to, and enforcement against, the assets of the Issuer for any and all
liabilities, obligations and undertakings contained in the Indenture or in this
Note.

 

 

ASSIGNMENT

 

	
  Social Security or
  taxpayer I.D. or other identifying number of assignee

  
	
   

  
	
   

  
	
  FOR VALUE RECEIVED, the undersigned hereby sells,
  assigns and transfers unto

  
	
   

  
	
  (name
  and address of assignee)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  the within
  Note and all rights thereunder, and hereby irrevocably constitutes and
  appoints ,                                                
  attorney, to transfer said Note on the books kept for registration thereof,
  with full power of substitution in the premises.

  
	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
  */

  
	
   

  	
  Signature Guaranteed:

  
	
   

  
	
   

  
	
   

  	
   

  
	
   

  	
  Signatures must be guaranteed by an “eligible
  guarantor institution” meeting the requirements of the Note Registrar, which
  requirements include membership or participation in STAMP or such other “signature
  guarantee program” as may be determined by the Note Registrar in addition to,
  or in substitution for, STAMP, all in accordance with the Securities Exchange
  Act of 1934, as amended.

  
								

 

*/                                     NOTE: The
signature to this assignment must correspond with the name of the registered
owner as it appears on the face of the within Note in every particular without
alteration, enlargement or any change whatsoever.

 

 

EXHIBIT A-2

to
Indenture

 

FORM OF A-2 NOTES

 

	
  REGISTERED

  	
  $          (1)

  
	
  No. R-1

  	
  CUSIP NO.               

  

 

Unless this Note is presented by an
authorized representative of The Depository Trust Company, a New York corporation
(“DTC”), to the Issuer or
its agent for registration of transfer, exchange or payment, and any Note
issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN
INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT
OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

 

CNH EQUIPMENT TRUST
200X-Y

 

        %
CLASS A-2 ASSET BACKED NOTES

 

CNH Equipment Trust 200X-Y, a trust organized
and existing under the laws of the State of Delaware (including any successor,
the “Issuer”), for value
received, hereby promises to pay to CEDE & CO., or registered assigns,
the principal sum of                                               
($        ), partially payable on each
Payment Date in an amount equal to the aggregate amount, if any, payable from
the Note Distribution Account in respect of principal on the A-2 Notes pursuant
to Section 3.1 of the Indenture; provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the
earlier of the [Month Day] 200X Payment Date and the Redemption Date, if any,
pursuant to Section 10.1(a) of the Indenture. Except as provided in Section 5.4
of the Indenture, no payments of principal of the Notes will be made until the
principal of the A-1 Notes has been paid in full. The Issuer will pay interest
on this Note at the A-2 Note Rate, on each Payment Date until the principal of
this Note is paid or made available for payment, on the principal amount of
this Note outstanding on the preceding Payment Date (after giving effect to all
payments of principal made on the preceding Payment Date), subject to certain
limitations contained in Section 3.1 of the Indenture. Interest on this
Note will accrue for each Payment Date from the most recent Payment Date on
which interest has been paid to but excluding the then current Payment Date or,
if no interest has yet been paid,

 

(1)                                  Denominations
of $1,000 and in greater whole-dollar denominations in excess thereof.

 

 

from the date hereof. Interest will be computed on the basis of a 360-day
year consisting of twelve 30-day months. Such principal of and interest on this
Note shall be paid in the manner specified in the Indenture.

 

The principal of and interest on this Note
are payable in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts. All payments
made by the Issuer with respect to this Note shall be applied first to interest
due and payable on this Note as provided above and then to the unpaid principal
of this Note.

 

Reference is made to the further provisions
of this Note set forth on the reverse hereof, which shall have the same effect
as though fully set forth on the face of this Note.

 

Unless the certificate of authentication
hereon has been executed by the Indenture Trustee by manual signature, this
Note shall not be entitled to any benefit under the Indenture referred to on
the reverse hereof, or be valid or obligatory for any purpose.

 

IN WITNESS
WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer.

 

Dated: [Month Day], 200X

 

	
   

  	
  CNH EQUIPMENT
  TRUST 200X-Y

  
	
   

  	
   

  
	
   

  	
  By:

  	
  The Bank of New York,

  
	
   

  	
   

  	
  not in its individual capacity but solely as Trustee
  under the

  
	
   

  	
   

  	
  Trust Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  	
   

  	
   

  
						

 

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

 

Dated: [Month Day], 200X

 

	
   

  	
  [JPMORGAN CHASE
  BANK, N.A.]

  
	
   

  	
  not in its
  individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  

 

 

[REVERSE OF NOTE]

 

This Note is one of a duly authorized issue
of Notes of the Issuer, designated as its          %
Class A-2 Asset Backed Notes (herein called the “A-2 Notes” or the “Notes”), all issued under
an Indenture dated as of [Month Day], 200X (such Indenture, as supplemented or
amended, is herein called the “Indenture”)
between the Issuer and [JPMorgan Chase Bank, N.A.], not in its individual
capacity but solely as trustee (the “Indenture Trustee”, which term
includes any successor Indenture Trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights and obligations thereunder of the Issuer,
the Indenture Trustee and the Holders of the Notes. The Notes are subject to
all terms of the Indenture. All terms used in this Note that are not otherwise
defined herein and that are defined in the Indenture shall have the meanings
assigned to them in or pursuant to the Indenture.

 

The Notes, the A-1 Notes, the A-3 Notes, the
A-4a Notes and the A-4b Notes are and will be equally and ratably secured by
the collateral pledged as security therefor as provided in the Indenture.

 

The Issuer shall pay interest on overdue
installments of interest at the A-2 Note Rate to the extent lawful.

 

Each Noteholder or Note Owner, by acceptance
of a Note, or, in the case of a Note Owner, a beneficial interest in the Note,
covenants and agrees that no recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer or the Indenture Trustee on the
Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against: (i) the Indenture Trustee or the Trustee in
their individual capacities, (ii) any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director or employee of: (a) the Indenture Trustee or the Trustee in their
individual capacities, (b) any holder of a beneficial interest in the
Issuer, the Trustee or the Indenture Trustee or of (c) any successor or
assign of the Indenture Trustee or the Trustee in their individual capacities,
except as any such Person may have expressly agreed and except that any such
partner, owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such partner,
owner or beneficiary.

 

It is the intent of the Seller, the Servicer,
the Noteholders and the Note Owners that, for purposes of federal and State
income tax and any other tax measured in whole or in part by income, the Notes
qualify as indebtedness of the Trust. Each Noteholder or Note Owner, by
acceptance of a Note, or, in the case of a Note Owner, a beneficial interest in
a Note, agrees to treat, and to take no action inconsistent with the treatment
of, the Notes for such tax purposes as indebtedness of the Trust.

 

Each Noteholder or Note Owner, by acceptance
of a Note, or, in the case of a Note Owner, a beneficial interest in a Note,
covenants and agrees that by accepting the benefits of the Indenture that such
Noteholder will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy,
reorganization or

 

 

arrangement, insolvency or liquidation proceedings under any United
States federal or State bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the Basic Documents.

 

Each Noteholder or Note Owner, by acceptance
of a Note, or in the case of Note Owner, a beneficial interest in the Note,
represents that either (a) it is not (i) an employee benefit plan (as
defined in Section 3(3) of ERISA) that is subject to the provisions
of Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of
the Code, (iii) any entity whose underlying assets include plan assets of
any of the foregoing (each a “Benefit Plan”), or (iv) a governmental plan
(as defined in Section 3(32) of ERISA) that is subject to any law
substantially similar to ERISA or Section 4975 of the Code or (b) the
purchase and holding of the Note, or a beneficial interest therein, will not
result in a non-exempt prohibited transaction under Section 406 of ERISA, Section 4975
of the Code or any substantially similar applicable law.

 

This Note and the Indenture shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

 

No reference herein to the Indenture and no
provision of this Note or of the Indenture shall alter or impair the obligation
of the Issuer, which is absolute and unconditional, to pay the principal of and
interest on this Note at the times, place and rate, and in the coin or
currency, herein prescribed.

 

Anything herein to the contrary
notwithstanding, except as expressly provided in the Basic Documents, neither
[JPMorgan Chase Bank, N.A.], in its individual capacity, any owner of a
beneficial interest in the Issuer, nor any of their respective partners,
beneficiaries, agents, officers, directors, employees, successors or assigns
shall be personally liable for, nor shall recourse be had to any of them for,
the payment of principal of or interest on, or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in
this Note or the Indenture, it being expressly understood that said covenants,
obligations and indemnifications have been made by the Indenture Trustee for
the sole purposes of binding the interests of the Indenture Trustee in the
assets of the Issuer. The Holder of this Note by the acceptance hereof, and
each Note Owner by the acceptance of a beneficial interest herein, each agrees
that, except as expressly provided in the Basic Documents, in the case of an
Event of Default under the Indenture, the Holder and Note Owner shall have no
claim against any of the foregoing for any deficiency, loss or claim therefrom;
provided,
however, that nothing contained herein shall be taken to prevent
recourse to, and enforcement against, the assets of the Issuer for any and all
liabilities, obligations and undertakings contained in the Indenture or in this
Note.

 

 

ASSIGNMENT

 

	
  Social Security or
  taxpayer I.D. or other identifying number of assignee

  
	
   

  
	
   

  
	
  FOR VALUE RECEIVED, the undersigned hereby sells,
  assigns and transfers unto

  
	
   

  
	
   

  
	
  (name
  and address of assignee)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  the within
  Note and all rights thereunder, and hereby irrevocably constitutes and
  appoints                                             ,
  attorney, to transfer said Note on the books kept for registration thereof,
  with full power of substitution in the premises.

  
	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
  */

  
	
   

  	
   

  
	
   

  	
  Signature Guaranteed:

  
	
   

  
	
   

  
	
   

  	
   

  
	
   

  	
  Signatures must be guaranteed by an “eligible
  guarantor institution” meeting the requirements of the Note Registrar, which
  requirements include membership or participation in STAMP or such other “signature
  guarantee program” as may be determined by the Note Registrar in addition to,
  or in substitution for, STAMP, all in accordance with the Securities Exchange
  Act of 1934, as amended.

  
								

 

 

*/                                     NOTE: The
signature to this assignment must correspond with the name of the registered
owner as it appears on the face of the within Note in every particular without
alteration, enlargement or any change whatsoever.

 

 

EXHIBIT A-3

to Indenture

 

FORM OF A-3 NOTES

 

	
  REGISTERED

  	
  $          (1)

  
	
  No. R-1

  	
  CUSIP
  NO.               

  

 

Unless this Note is presented by an
authorized representative of The Depository Trust Company, a New York
corporation (“DTC”), to the Issuer or
its agent for registration of transfer, exchange or payment, and any Note
issued is registered in the name of Cede & Co. or in such other name
as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN
INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT
OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

 

CNH EQUIPMENT TRUST
200X-Y

 

      %
CLASS A-3 ASSET BACKED NOTES

 

CNH Equipment Trust 200X-Y, a trust organized
and existing under the laws of the State of Delaware (including any successor,
the “Issuer”), for value
received, hereby promises to pay to CEDE & CO., or registered assigns,
the principal sum of                                         
($          ), partially
payable on each Payment Date in an amount equal to the aggregate amount, if
any, payable from the Note Distribution Account in respect of principal on the
A-2 Notes pursuant to Section 3.1 of the Indenture; provided, however,
that the entire unpaid principal amount of this Note shall be due and payable
on the earlier of the [Month Day] 200X Payment Date and the Redemption Date, if
any, pursuant to Section 10.1(a) of the Indenture. Except as provided
in Section 5.4 of the Indenture, no payments of principal of the Notes
will be made until the principal of the A-1 Notes and the A-2 Notes has been paid
in full. The Issuer will pay interest on this Note at the A-3 Note Rate, on
each Payment Date until the principal of this Note is paid or made available
for payment, on the principal amount of this Note outstanding on the preceding
Payment Date (after giving effect to all payments of principal made on the
preceding Payment Date), subject to certain limitations contained in Section 3.1
of the Indenture. Interest on this Note will accrue for each Payment Date from
the most recent Payment Date on which interest has been paid to but excluding
the then current Payment Date or, if no interest has yet

 

(1)                                  Denominations
of $1,000 and in greater whole-dollar denominations in excess thereof.

 

 

been paid, from the date hereof. Interest
will be computed on the basis of a 360-day year consisting of twelve 30-day
months. Such principal of and interest on this Note shall be paid in the manner
specified in the Indenture.

 

The principal of and interest on this Note
are payable in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts. All
payments made by the Issuer with respect to this Note shall be applied first to
interest due and payable on this Note as provided above and then to the unpaid
principal of this Note.

 

Reference is made to the further provisions
of this Note set forth on the reverse hereof, which shall have the same effect
as though fully set forth on the face of this Note.

 

Unless the certificate of authentication hereon has been executed by
the Indenture Trustee by manual signature, this Note shall not be entitled to
any benefit under the Indenture referred to on the reverse hereof, or be valid
or obligatory for any purpose.

 

IN WITNESS
WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer.

 

Dated: [Month Day], 200X

 

	
   

  	
  CNH EQUIPMENT
  TRUST 200X-Y

  
	
   

  	
   

  
	
   

  	
  By:

  	
  The Bank of New York,

  
	
   

  	
   

  	
  not in its individual capacity but solely as Trustee
  under the

  
	
   

  	
   

  	
  Trust Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  	
   

  	
   

  
						

 

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

 

Dated: [Month Day], 200X

 

	
   

  	
  [JPMORGAN CHASE
  BANK, N.A.], not in its individual capacity

  
	
   

  	
  but solely as
  Indenture Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  

 

 

[REVERSE OF NOTE]

 

This Note is one of a duly authorized issue
of the Issuer, designated as its             %
Class A-3 Asset Backed Notes (herein called the “A-3 Notes” or the “Notes”), all issued under
an Indenture dated as of [Month Day], 200X (such Indenture, as supplemented or
amended, is herein called the “Indenture”)
between the Issuer and [JPMorgan Chase Bank, N.A.], not in its individual
capacity but solely as trustee (the “Indenture Trustee”, which term
includes any successor Indenture Trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights and obligations thereunder of the Issuer,
the Indenture Trustee and the Holders of the Notes. The Notes are subject to
all terms of the Indenture. All terms used in this Note that are not otherwise
defined herein and that are defined in the Indenture shall have the meanings
assigned to them in or pursuant to the Indenture.

 

The Notes, the A-1 Notes, the A-2 Notes, the
A-4a Notes and the A-4b Notes are and will be equally and ratably secured by
the collateral pledged as security therefor as provided in the Indenture.

 

The Issuer shall pay interest on overdue
installments of interest at the A-3 Note Rate to the extent lawful.

 

Each Noteholder or Note Owner, by acceptance
of a Note, or, in the case of a Note Owner, a beneficial interest in the Note,
covenants and agrees that no recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer or the Indenture Trustee on the
Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against: (i) the Indenture Trustee or the Trustee in
their individual capacities, (ii) any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director or employee of: (a) the Indenture Trustee or the Trustee in their
individual capacities, (b) any holder of a beneficial interest in the
Issuer, the Trustee or the Indenture Trustee or of (c) any successor or
assign of the Indenture Trustee or the Trustee in their individual capacities,
except as any such Person may have expressly agreed and except that any such
partner, owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such partner,
owner or beneficiary.

 

It is the intent of the Seller, the Servicer,
the Noteholders and the Note Owners that, for purposes of federal and State
income tax and any other tax measured in whole or in part by income, the Notes
qualify as indebtedness of the Trust. Each Noteholder or Note Owner, by
acceptance of a Note, or, in the case of a Note Owner, a beneficial interest in
a Note, agrees to treat, and to take no action inconsistent with the treatment
of, the Notes for such tax purposes as indebtedness of the Trust.

 

Each Noteholder or Note Owner, by acceptance
of a Note, or, in the case of a Note Owner, a beneficial interest in a Note,
covenants and agrees that by accepting the benefits of the Indenture that such
Noteholder will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy,
reorganization or

 

 

 

arrangement, insolvency or liquidation proceedings under any United
States federal or State bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the Basic Documents.

 

Each Noteholder or
Note Owner, by acceptance of a Note, or in the case of Note Owner, a beneficial
interest in the Note, represents that either (a) it is not (i) an employee
benefit plan (as defined in Section 3(3) of ERISA) that is subject to the
provisions of Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of
the Code, (iii) any entity whose underlying assets include plan assets of any
of the foregoing (each a “Benefit Plan”), or (iv) a governmental plan (as
defined in Section 3(32) of ERISA) that is subject to any law substantially
similar to ERISA or Section 4975 of the Code or (b) the purchase and holding of
the Note, or a beneficial interest therein, will not result in a non-exempt
prohibited transaction under Section 406 of ERISA, Section 4975 of the Code or
any substantially similar applicable law.

 

This Note and the
Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations,
rights and remedies of the parties hereunder and thereunder shall be determined
in accordance with such laws.

 

No reference
herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of and interest on this Note at the times,
place and rate, and in the coin or currency, herein prescribed.

 

Anything herein to
the contrary notwithstanding, except as expressly provided in the Basic
Documents, neither [JPMorgan Chase Bank, N.A.], in its individual capacity, any
owner of a beneficial interest in the Issuer, nor any of their respective
partners, beneficiaries, agents, officers, directors, employees, successors or
assigns shall be personally liable for, nor shall recourse be had to any of
them for, the payment of principal of or interest on, or performance of, or
omission to perform, any of the covenants, obligations or indemnifications
contained in this Note or the Indenture, it being expressly understood that
said covenants, obligations and indemnifications have been made by the
Indenture Trustee for the sole purposes of binding the interests of the
Indenture Trustee in the assets of the Issuer. The Holder of this Note by the
acceptance hereof, and each Note Owner by the acceptance of a beneficial
interest herein, each agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, the Holder
and Note Owner shall have no claim against any of the foregoing for any
deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be
taken to prevent recourse to, and enforcement against, the assets of the Issuer
for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Note.

 

 

ASSIGNMENT

 

	
  Social Security
  or taxpayer I.D. or other identifying number of assignee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  FOR VALUE
  RECEIVED, the undersigned hereby sells, assigns and transfers unto

  	
   

  
	
   

  	
   

  
	
  (name and address of assignee)

  	
   

  
	
   

  	
   

  
	
  the within Note
  and all rights thereunder, and hereby irrevocably constitutes and appoints                                  
  , attorney, to transfer said Note on the books kept for registration thereof,
  with full power of substitution in the premises.

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
  *

  	
  /

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature
  Guaranteed:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signatures must
  be guaranteed by an “eligible guarantor institution” meeting the requirements
  of the Note Registrar, which requirements include membership or participation
  in STAMP or such other “signature guarantee program” as may be determined by
  the Note Registrar in addition to, or in substitution for, STAMP, all in
  accordance with the Securities Exchange Act of 1934, as amended.

  	
   

  
										

 

 

*/                                     NOTE:
The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular without alteration, enlargement or any change whatsoever.

 

 

EXHIBIT A-4a

to Indenture

 

FORM OF A-4a NOTES

 

	
  REGISTERED

  	
   

  	
   

  	
  $               (1)

  
	
  No. R-1

  	
   

  	
  CUSIP NO.                    

  

 

Unless this Note
is presented by an authorized representative of The Depository Trust Company, a
New York corporation (“DTC”), to the Issuer or its agent for
registration of transfer, exchange or payment, and any Note issued is
registered in the name of Cede & Co. or in such other name as is requested
by an authorized representative of DTC (and any payment is made to Cede &
Co. or to such other entity as is requested by an authorized representative of
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

 

THE PRINCIPAL OF
THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF.

CNH EQUIPMENT
TRUST 200X-Y

 

FLOATING RATE CLASS A-4a ASSET BACKED NOTES

 

CNH Equipment
Trust 200X-Y, a trust organized and existing under the laws of the State of
Delaware (including any successor, the “Issuer”),
for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of                                                
($                    ),
partially payable on each Payment Date in an amount equal to the aggregate amount,
if any, payable from the Note Distribution Account in respect of principal on
the A-4A Notes pursuant to Section 3.1 of the Indenture; provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the
earlier of the [Month Day] 200X Payment Date and the Redemption Date, if any,
pursuant to Section 10.1(a) of the Indenture. Except as provided in Section 5.4
of the Indenture, no payments of principal of the Notes will be made until the
principal of the A-1 Notes, the A-2 Notes, the A-3 Notes has been paid in full.
The Issuer will pay interest on this Note at the A-4a Note Rate, on each
Payment Date until the principal of this Note is paid or made available for
payment, on the principal amount of this Note outstanding on the preceding
Payment Date (after giving effect to all payments of principal made on the
preceding Payment Date), subject to certain limitations contained in
Section 3.1 of the Indenture. Interest on this Note will accrue for each
Payment Date from the most recent Payment Date on which interest has been paid
to but excluding the then current Payment Date or, if no

 

(1)           Denominations of
$1,000 and in greater whole-dollar denominations in excess thereof.

 

 

interest has yet been paid, from the date hereof. Interest will be
computed on the basis of a 360-day year and the actual number of days in the
applicable Interest Period. Such principal of and interest on this Note shall
be paid in the manner specified in the Indenture.

 

The principal of
and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts. All payments made by the Issuer with respect to this
Note shall be applied first to interest due and payable on this Note as
provided above and then to the unpaid principal of this Note.

 

Reference is made
to the further provisions of this Note set forth on the reverse hereof, which
shall have the same effect as though fully set forth on the face of this Note.

 

Unless the
certificate of authentication hereon has been executed by the Indenture Trustee
by manual signature, this Note shall not be entitled to any benefit under the
Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

 

 

IN WITNESS
WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer.

 

	
  Dated [Month
  Day], 200X

  	
   

  
	
   

  	
  CNH EQUIPMENT TRUST 200X-Y

  
	
   

  	
   

  
	
   

  	
  BY:  The Bank of New
  York,

  
	
   

  	
   

  	
  not in its individual capacity but solely as Trustee under the

  Trust Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the
Notes designated above and referred to in the within-mentioned Indenture.

 

	
  Dated [Month
  Day], 200X

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [JPMORGAN
  CHASE BANK, N.A.], not in its individual capacity

  but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
					

 

 

[REVERSE
OF NOTE]

 

This Note is one
of a duly authorized issue of Notes of the Issuer, designated as its Floating
Rate Class A-4a Asset Backed Notes (herein called the “A-4a Notes” or the “Notes”), all issued under an Indenture
dated as of [Month Day], 200X (such Indenture, as supplemented or amended, is
herein called the “Indenture”) between the Issuer and [JPMorgan
Chase Bank, N.A.], not in its individual capacity but solely as trustee (the “Indenture Trustee”, which term includes any
successor Indenture Trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights and obligations thereunder of the Issuer, the Indenture
Trustee and the Holders of the Notes. The Notes are subject to all terms of the
Indenture. All terms used in this Note that are not otherwise defined herein
and that are defined in the Indenture shall have the meanings assigned to them
in or pursuant to the Indenture.

 

The Notes, the A-1
Notes, the A-2 Notes, the A-3 Notes, and the A-4b Notes are and will be equally
and ratably secured by the collateral pledged as security therefor as provided
in the Indenture.

 

The Issuer shall
pay interest on overdue installments of interest at the A-4a Note Rate to the
extent lawful.

 

Each Noteholder or
Note Owner, by acceptance of a Note, or, in the case of a Note Owner, a
beneficial interest in the Note, covenants and agrees that no recourse may be
taken, directly or indirectly, with respect to the obligations of the Issuer or
the Indenture Trustee on the Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against: (i) the Indenture
Trustee or the Trustee in their individual capacities, (ii) any owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of: (a) the Indenture Trustee or the
Trustee in their individual capacities, (b) any holder of a beneficial interest
in the Issuer, the Trustee or the Indenture Trustee or of (c) any successor or
assign of the Indenture Trustee or the Trustee in their individual capacities,
except as any such Person may have expressly agreed and except that any such
partner, owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such partner,
owner or beneficiary.

 

It is the intent
of the Seller, the Servicer, the Noteholders and the Note Owners that, for
purposes of federal and State income tax and any other tax measured in whole or
in part by income, the Notes qualify as indebtedness of the Trust. Each
Noteholder or Note Owner, by acceptance of a Note, or, in the case of a Note
Owner, a beneficial interest in a Note, agrees to treat, and to take no action
inconsistent with the treatment of, the Notes for such tax purposes as
indebtedness of the Trust.

 

Each Noteholder or
Note Owner, by acceptance of a Note, or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that by accepting the
benefits of the Indenture that such Noteholder will not at any time institute
against the Seller or the Issuer, or join in any institution against the Seller
or the Issuer of, any bankruptcy, reorganization or

 

 

arrangement, insolvency or liquidation proceedings under any United
States federal or State bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the Basic Documents.

 

Each Noteholder or
Note Owner, by acceptance of a Note, or in the case of Note Owner, a beneficial
interest in the Note, represents that either (a) it is not (i) an employee
benefit plan (as defined in Section 3(3) of ERISA) that is subject to the
provisions of Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of
the Code, (iii) any entity whose underlying assets include plan assets of any
of the foregoing (each a “Benefit Plan”), or (iv) a governmental plan (as
defined in Section 3(32) of ERISA) that is subject to any law substantially
similar to ERISA or Section 4975 of the Code or (b) the purchase and holding of
the Note, or a beneficial interest therein, will not result in a non-exempt
prohibited transaction under Section 406 of ERISA, Section 4975 of the Code or
any substantially similar applicable law.

 

This Note and the
Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations,
rights and remedies of the parties hereunder and thereunder shall be determined
in accordance with such laws.

 

No reference
herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of and interest on this Note at the times,
place and rate, and in the coin or currency, herein prescribed.

 

Anything herein to
the contrary notwithstanding, except as expressly provided in the Basic
Documents, neither [JPMorgan Chase Bank, N.A.], in its individual capacity, any
owner of a beneficial interest in the Issuer, nor any of their respective
partners, beneficiaries, agents, officers, directors, employees, successors or
assigns shall be personally liable for, nor shall recourse be had to any of
them for, the payment of principal of or interest on, or performance of, or
omission to perform, any of the covenants, obligations or indemnifications
contained in this Note or the Indenture, it being expressly understood that
said covenants, obligations and indemnifications have been made by the
Indenture Trustee for the sole purposes of binding the interests of the
Indenture Trustee in the assets of the Issuer. The Holder of this Note by the
acceptance hereof, and each Note Owner by the acceptance of a beneficial
interest herein, each agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, the Holder
and Note Owner shall have no claim against any of the foregoing for any
deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be
taken to prevent recourse to, and enforcement against, the assets of the Issuer
for any and all liabilities, obligations and undertakings contained in the
Indenture or in this Note.

 

 

ASSIGNMENT

 

	
  Social Security
  or taxpayer I.D. or other identifying number of assignee

  	
   

  
	
   

  	
   

  
	
  FOR VALUE
  RECEIVED, the undersigned hereby sells, assigns and transfers unto

  	
   

  
	
   

  	
   

  
	
  (name and address of assignee)

  	
   

  
	
   

  	
   

  
	
  the within Note
  and all rights thereunder, and hereby irrevocably constitutes and appoints                                 
   , attorney, to transfer said Note on the books kept for
  registration thereof, with full power of substitution in the premises.

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
  *

  	
  /

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature
  Guaranteed:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signatures must
  be guaranteed by an “eligible guarantor institution” meeting the requirements
  of the Note Registrar, which requirements include membership or participation
  in STAMP or such other “signature guarantee program” as may be determined by
  the Note Registrar in addition to, or in substitution for, STAMP, all in
  accordance with the Securities Exchange Act of 1934, as amended.

  	
   

  
	
   

  	
   

  	
   

  
										

 

*/                                     NOTE:
The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular without alteration, enlargement or any change whatsoever.

 

 

EXHIBIT
A-4b

to Indenture

FORM OF A-4b NOTES

 

	
  REGISTERED

  	
   

  	
  $                         (1)

  
	
  No. R-1

  	
   

  	
  CUSIP NO.                    

  

 

Unless this Note
is presented by an authorized representative of The Depository Trust Company, a
New York corporation (“DTC”), to the Issuer or its agent for
registration of transfer, exchange or payment, and any Note issued is
registered in the name of Cede & Co. or in such other name as is requested
by an authorized representative of DTC (and any payment is made to Cede &
Co. or to such other entity as is requested by an authorized representative of
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

 

THE PRINCIPAL OF
THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF.

 

CNH EQUIPMENT
TRUST 200X-Y

 

       % CLASS A-4b
ASSET BACKED NOTES

 

CNH Equipment
Trust 200X-Y, a trust organized and existing under the laws of the State of
Delaware (including any successor, the “Issuer”),
for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of                                 
($        ), partially payable on each
Payment Date in an amount equal to the aggregate amount, if any, payable from
the Note Distribution Account in respect of principal on the A-4b Notes
pursuant to Section 3.1 of the Indenture; provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the
earlier of the [Month Day] 200X Payment Date and the Redemption Date, if any,
pursuant to Section 10.1(a) of the Indenture. Except as provided in Section 5.4
of the Indenture, no payments of principal of the Notes will be made until the
principal of the A-1 Notes, A-2 Notes, A-3 Notes have been paid in full. The
Issuer will pay interest on this Note at the A-4b Note Rate, on each Payment
Date until the principal of this Note is paid or made available for payment, on
the principal amount of this Note outstanding on the preceding Payment Date
(after giving effect to all payments of principal made on the preceding Payment
Date), subject to certain limitations contained in Section 3.1 of the
Indenture. Interest on this Note will accrue for each Payment Date from the
most recent Payment Date on which interest has been paid to but excluding the
then current Payment Date or, if no interest has yet

 

(1)           Denominations of
$1,000 and in greater whole-dollar denominations in excess thereof.

 

 

been paid, from the date hereof. Interest will be computed on the basis
of a 360-day year consisting of twelve 30-day months. Such principal of and
interest on this Note shall be paid in the manner specified in the Indenture.

 

The principal of
and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts. All payments made by the Issuer with respect to this
Note shall be applied first to interest due and payable on this Note as
provided above and then to the unpaid principal of this Note.

 

Reference is made
to the further provisions of this Note set forth on the reverse hereof, which
shall have the same effect as though fully set forth on the face of this Note.

 

Unless the
certificate of authentication hereon has been executed by the Indenture Trustee
by manual signature, this Note shall not be entitled to any benefit under the
Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

 

IN WITNESS
WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer.

 

	
  Dated: [Month
  Day], 200X

  	
   

  
	
   

  	
  CNH EQUIPMENT TRUST 200X-Y

  
	
   

  	
   

  
	
   

  	
  By:  The Bank of New York,

  
	
   

  	
   

  	
  not in its individual capacity but solely as Trustee under the

  Trust Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  	
   

  	
   

  
							

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the
Notes designated above and referred to in the within-mentioned Indenture.

 

	
  Dated: [Month
  Day], 200X

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [JPMORGAN
  CHASE BANK, N.A.], not in its individual capacity

  but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
					

 

 

[REVERSE
OF NOTE]

 

This Note is one
of a duly authorized issue of Notes of the Issuer, designated as its         %
Class A-4b Asset Backed Notes (herein called the “A-4b Notes” or the “Notes”), all issued under an Indenture
dated as of [Month Day], 200X (such Indenture, as supplemented or amended, is
herein called the “Indenture”) between the Issuer and [JPMorgan
Chase Bank, N.A.], not in its individual capacity but solely as trustee (the “Indenture Trustee”, which term includes any
successor Indenture Trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights and obligations thereunder of the Issuer, the Indenture
Trustee and the Holders of the Notes. The Notes are subject to all terms of the
Indenture. All terms used in this Note that are not otherwise defined herein
and that are defined in the Indenture shall have the meanings assigned to them
in or pursuant to the Indenture.

 

The Notes, the A-1
Notes, the A-2 Notes, the A-3 Notes, and the A-4a Notes are and will be equally
and ratably secured by the collateral pledged as security therefor as provided
in the Indenture.

 

The Issuer shall
pay interest on overdue installments of interest at the A-4b Note Rate to the
extent lawful.

 

Each Noteholder or
Note Owner, by acceptance of a Note, or, in the case of a Note Owner, a
beneficial interest in the Note, covenants and agrees that no recourse may be
taken, directly or indirectly, with respect to the obligations of the Issuer or
the Indenture Trustee on the Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against: (i) the Indenture
Trustee or the Trustee in their individual capacities, (ii) any owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of: (a) the Indenture Trustee or the
Trustee in their individual capacities, (b) any holder of a beneficial interest
in the Issuer, the Trustee or the Indenture Trustee or of (c) any successor or
assign of the Indenture Trustee or the Trustee in their individual capacities,
except as any such Person may have expressly agreed and except that any such
partner, owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such partner,
owner or beneficiary.

 

It is the intent
of the Seller, the Servicer, the Noteholders and the Note Owners that, for
purposes of federal and State income tax and any other tax measured in whole or
in part by income, the Notes qualify as indebtedness of the Trust. Each
Noteholder or Note Owner, by acceptance of a Note, or, in the case of a Note
Owner, a beneficial interest in a Note, agrees to treat, and to take no action
inconsistent with the treatment of, the Notes for such tax purposes as
indebtedness of the Trust.

 

Each Noteholder or
Note Owner, by acceptance of a Note, or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that by accepting the
benefits of the Indenture that such Noteholder will not at any time institute
against the Seller or the Issuer, or join in any institution against the Seller
or the Issuer of, any bankruptcy, reorganization or

 

 

arrangement, insolvency or liquidation proceedings under any United
States federal or State bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the Basic Documents.

 

Each Noteholder or
Note Owner, by acceptance of a Note, or in the case of Note Owner, a beneficial
interest in the Note, represents that either (a) it is not (i) an employee
benefit plan (as defined in Section 3(3) of ERISA) that is subject to the
provisions of Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of
the Code, (iii) any entity whose underlying assets include plan assets of any
of the foregoing (each a “Benefit Plan”), or (iv) a governmental plan (as defined
in Section 3(32) of ERISA) that is subject to any law substantially similar to
ERISA or Section 4975 of the Code or (b) the purchase and holding of the Note,
or a beneficial interest therein, will not result in a non-exempt prohibited
transaction under Section 406 of ERISA, Section 4975 of the Code or any
substantially similar applicable law.

 

This Note and the
Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations,
rights and remedies of the parties hereunder and thereunder shall be determined
in accordance with such laws.

 

No reference
herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of and interest on this Note at the times,
place and rate, and in the coin or currency, herein prescribed.

 

Anything herein to
the contrary notwithstanding, except as expressly provided in the Basic
Documents, neither [JPMorgan Chase Bank, N.A.], in its individual capacity, any
owner of a beneficial interest in the Issuer, nor any of their respective
partners, beneficiaries, agents, officers, directors, employees, successors or
assigns shall be personally liable for, nor shall recourse be had to any of
them for, the payment of principal of or interest on, or performance of, or
omission to perform, any of the covenants, obligations or indemnifications
contained in this Note or the Indenture, it being expressly understood that
said covenants, obligations and indemnifications have been made by the
Indenture Trustee for the sole purposes of binding the interests of the
Indenture Trustee in the assets of the Issuer. The Holder of this Note by the acceptance
hereof, and each Note Owner by the acceptance of a beneficial interest herein,
each agrees that, except as expressly provided in the Basic Documents, in the
case of an Event of Default under the Indenture, the Holder and Note Owner
shall have no claim against any of the foregoing for any deficiency, loss or
claim therefrom; provided,
however, that nothing contained herein shall be taken to prevent
recourse to, and enforcement against, the assets of the Issuer for any and all
liabilities, obligations and undertakings contained in the Indenture or in this
Note.

 

 

ASSIGNMENT

 

	
  Social Security
  or taxpayer I.D. or other identifying number of assignee

  	
   

  
	
   

  	
   

  
	
  FOR VALUE
  RECEIVED, the undersigned hereby sells, assigns and transfers unto

  	
   

  
	
   

  	
   

  
	
  (name and address of assignee)

  	
   

  
	
   

  	
   

  
	
  the within Note
  and all rights thereunder, and hereby irrevocably constitutes and appoints                                 
   , attorney, to transfer said Note on the books kept for registration
  thereof, with full power of substitution in the premises.

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
  *

  	
  /

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature
  Guaranteed:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signatures must
  be guaranteed by an “eligible guarantor institution” meeting the requirements
  of the Note Registrar, which requirements include membership or participation
  in STAMP or such other “signature guarantee program” as may be determined by
  the Note Registrar in addition to, or in substitution for, STAMP, all in
  accordance with the Securities Exchange Act of 1934, as amended.

  	
   

  
										

 

 

*/                                     NOTE:
The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular without alteration, enlargement or any change whatsoever.

 

 

EXHIBIT A-5

to Indenture

FORM OF CLASS B NOTES

 

	
  REGISTERED

  	
   

  	
  $                        (1)

  
	
  No. R-1

  	
   

  	
  CUSIP NO.                    

  

 

Unless this Note
is presented by an authorized representative of The Depository Trust Company, a
New York corporation (“DTC”), to the Issuer or its agent for
registration of transfer, exchange or payment, and any Note issued is
registered in the name of Cede & Co. or in such other name as is requested
by an authorized representative of DTC (and any payment is made to Cede &
Co. or to such other entity as is requested by an authorized representative of
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co.,
has an interest herein.

 

THE PRINCIPAL OF
THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF.

 

CNH EQUIPMENT
TRUST 200X-Y

 

         % CLASS B ASSET BACKED NOTES

 

CNH Equipment
Trust 200X-Y, a trust organized and existing under the laws of the State of
Delaware (including any successor, the “Issuer”),
for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of                                     
($         ), partially payable on
each Payment Date in an amount equal to the aggregate amount, if any, payable
from the Note Distribution Account in respect of principal on the Class B Notes
pursuant to Section 3.1 of the Indenture; provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the
earlier of the [Month Day] 200X Payment Date and the Redemption Date, if any,
pursuant to Section 10.1(a) of the Indenture. No payments of principal of the
Notes will be made on any Payment Date until the A-1 Notes, the A-2 Notes, the
A-3 Notes, the A-4a Notes and the A-4b Notes have been paid in full.  The Issuer will pay interest on this Note at
the rate per annum shown above, on each Payment Date until the principal of
this Note is paid or made available for payment, on the principal amount of
this Note outstanding on the preceding Payment Date (after giving effect to all
payments of principal made on the preceding Payment Date), subject to certain
limitations contained in Section 3.1 of the Indenture. Interest on this
Note will accrue for each Payment Date from the most recent Payment

 

(1)           Denominations of
$1,000 and in greater whole-dollar denominations in excess thereof.

 

 

Date on which interest has been paid to but excluding the then current
Payment Date or, if no interest has yet been paid, from the date hereof.
Interest will be computed on the basis of a 360-day year consisting of twelve
30-day months. Such principal of and interest on this Note shall be paid in the
manner specified in the Indenture.

 

The principal of
and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts. All payments made by the Issuer with respect to this
Note shall be applied first to interest due and payable on this Note as
provided above and then to the unpaid principal of this Note.

 

Reference is made
to the further provisions of this Note set forth on the reverse hereof, which
shall have the same effect as though fully set forth on the face of this Note.

 

Unless the
certificate of authentication hereon has been executed by the Indenture Trustee
by manual signature, this Note shall not be entitled to any benefit under the
Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

 

 

IN WITNESS
WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer.

 

	
  Dated: [Month Day], 200X

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CNH EQUIPMENT TRUST
  200X-Y

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  The Bank of New York,

  	
   

  
	
   

  	
   

  	
  not in its individual
  capacity but solely as Trustee under the Trust Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
								

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the
Notes designated above and referred to in the within-mentioned Indenture.

 

 

	
  Dated: [Month
  Day], 200X

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [JPMORGAN
  CHASE BANK, N.A.],

  not in its individual capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
					

 

 

[REVERSE
OF NOTE]

 

This Note is one
of a duly authorized issue of Notes of the Issuer, designated as its         %
Class B Asset Backed Notes (herein called the “Class B Notes” or the “Notes”), all issued under an Indenture
dated as of [Month Day], 200X (such Indenture, as supplemented or amended, is
herein called the “Indenture”) between the Issuer and [JPMorgan
Chase Bank, N.A.], not in its individual capacity but solely as trustee (the “Indenture Trustee”, which term includes any
successor Indenture Trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights and obligations thereunder of the Issuer, the Indenture
Trustee and the Holders of the Notes. The Notes are subject to all terms of the
Indenture. All terms used in this Note that are not otherwise defined herein
and that are defined in the Indenture shall have the meanings assigned to them
in or pursuant to the Indenture.

 

The Class B Notes
are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in the Indenture, but the interest of the Class B
Noteholders in such collateral is subordinated and second to the rights of the
Class A Noteholders.

 

The Issuer shall
pay interest on overdue installments of interest at the Class B Note Rate to
the extent lawful.

 

Each Noteholder or
Note Owner, by acceptance of a Note, or, in the case of a Note Owner, a
beneficial interest in the Note, covenants and agrees that no recourse may be
taken, directly or indirectly, with respect to the obligations of the Issuer or
the Indenture Trustee on the Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against: (i) the Indenture
Trustee or the Trustee in their individual capacities, (ii) any owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent,
officer, director or employee of: (a) the Indenture Trustee or the Trustee in
their individual capacities, (b) any holder of a beneficial interest in the
Issuer, the Trustee or the Indenture Trustee or of (c) any successor or assign
of the Indenture Trustee or the Trustee in their individual capacities, except
as any such Person may have expressly agreed and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such partner,
owner or beneficiary.

 

It is the intent
of the Seller, the Servicer, the Noteholders and the Note Owners that, for
purposes of federal and State income tax and any other tax measured in whole or
in part by income, the Notes qualify as indebtedness of the Trust. Each
Noteholder or Note Owner, by acceptance of a Note, or, in the case of a Note
Owner, a beneficial interest in a Note, agrees to treat, and to take no action
inconsistent with the treatment of, the Notes for such tax purposes as
indebtedness of the Trust.

 

Each Noteholder or
Note Owner, by acceptance of a Note, or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that by accepting the
benefits of the Indenture that such Noteholder will not at any time institute
against the Seller or the Issuer, or join in any institution against the Seller
or the Issuer of, any bankruptcy, reorganization or

 

 

arrangement, insolvency or liquidation proceedings under any United
States federal or State bankruptcy or similar law in connection with any
obligations relating to the Notes, the Indenture or the Basic Documents.

 

Each Noteholder or
Note Owner, by acceptance of a Note, or in the case of Note Owner, a beneficial
interest in the Note, represents that either (a) it is not (i) an employee
benefit plan (as defined in Section 3(3) of ERISA) that is subject to the
provisions of Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of
the Code, (iii) any entity whose underlying assets include plan assets of any
of the foregoing (each a “Benefit Plan”), or (iv) a governmental plan (as
defined in Section 3(32) of ERISA) that is subject to any law substantially
similar to ERISA or Section 4975 of the Code or (b) the purchase and holding of
the Note, or a beneficial interest therein, will not result in a non-exempt
prohibited transaction under Section 406 of ERISA, Section 4975 of the Code or
any substantially similar applicable law.

 

This Note and the
Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations,
rights and remedies of the parties hereunder and thereunder shall be determined
in accordance with such laws.

 

No reference
herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of and interest on this Note at the times,
place and rate, and in the coin or currency, herein prescribed.

 

Anything herein to
the contrary notwithstanding, except as expressly provided in the Basic Documents,
neither [JPMorgan Chase Bank, N.A.], in its individual capacity, any owner of a
beneficial interest in the Issuer, nor any of their respective partners,
beneficiaries, agents, officers, directors, employees, successors or assigns
shall be personally liable for, nor shall recourse be had to any of them for,
the payment of principal of or interest on, or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in
this Note or the Indenture, it being expressly understood that said covenants,
obligations and indemnifications have been made by the Indenture Trustee for
the sole purposes of binding the interests of the Indenture Trustee in the
assets of the Issuer. The Holder of this Note by the acceptance hereof, and
each Note Owner by the acceptance of a beneficial interest herein, each agrees
that, except as expressly provided in the Basic Documents, in the case of an
Event of Default under the Indenture, the Holder and Note Owner shall have no
claim against any of the foregoing for any deficiency, loss or claim therefrom;
provided, however,
that nothing contained herein shall be taken to prevent recourse to, and
enforcement against, the assets of the Issuer for any and all liabilities,
obligations and undertakings contained in the Indenture or in this Note.

 

 

ASSIGNMENT

 

	
  Social Security
  or taxpayer I.D. or other identifying number of assignee

  	
   

  
	
   

  	
   

  
	
  FOR VALUE
  RECEIVED, the undersigned hereby sells, assigns and transfers unto

  
	
   

  	
   

  
	
  (name and address of assignee)

  	
   

  
	
   

  	
   

  
	
  the within Note
  and all rights thereunder, and hereby irrevocably constitutes and appoints                                                  ,
  attorney, to transfer said Note on the books kept for registration thereof,
  with full power of substitution in the premises.

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
  *

  	
  /

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature
  Guaranteed:

  	
   

  
	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signatures must
  be guaranteed by an “eligible guarantor institution” meeting the requirements
  of the Note Registrar, which requirements include membership or participation
  in STAMP or such other “signature guarantee program” as may be determined by
  the Note Registrar in addition to, or in substitution for, STAMP, all in
  accordance with the Securities Exchange Act of 1934, as amended.

  	
   

  
									

 

*/                                     NOTE:
The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular without alteration, enlargement or any change whatsoever.

 

 

EXHIBIT A-6

to Indenture

FORM OF CLASS C NOTES

 

	
  REGISTERED

  	
   

  	
  $                        (1)

  
	
  No. R-1

  	
   

  	
  CUSIP NO.                    

  

 

Unless this Note
is presented by an authorized representative of The Depository Trust Company, a
New York corporation (“DTC”), to the Issuer or its agent for
registration of transfer, exchange or payment, and any Note issued is
registered in the name of Cede & Co. or in such other name as is requested
by an authorized representative of DTC (and any payment is made to Cede &
Co. or to such other entity as is requested by an authorized representative of DTC),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has
an interest herein.

 

THE PRINCIPAL OF
THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF.

 

CNH EQUIPMENT
TRUST 200X-Y

 

       % CLASS C ASSET BACKED NOTES

 

CNH Equipment
Trust 200X-Y, a trust organized and existing under the laws of the State of
Delaware (including any successor, the “Issuer”),
for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of                                     
($             ),
partially payable on each Payment Date in an amount equal to the aggregate
amount, if any, payable from the Note Distribution Account in respect of
principal on the Class B Notes pursuant to Section 3.1 of the Indenture; provided, however,
that the entire unpaid principal amount of this Note shall be due and payable
on the earlier of the [Month Day] 200X Payment Date and the Redemption Date, if
any, pursuant to Section 10.1(a) of the Indenture. No payments of principal of
the Notes will be made on any Payment Date until the A-1 Notes, the A-2 Notes,
the A-3 Notes, the A-4a Notes, the A-4b Notes and the Class B Notes have been
paid in full.  The Issuer will pay
interest on this Note at the rate per annum shown above, on each Payment Date
until the principal of this Note is paid or made available for payment, on the
principal amount of this Note outstanding on the preceding Payment Date (after
giving effect to all payments of principal made on the preceding Payment Date),
subject to certain limitations contained in Section 3.1 of the Indenture.
Interest on this Note will accrue for each Payment Date

 

(1)           Denominations of
$1,000 and in greater whole-dollar denominations in excess thereof.

 

 

from the most recent Payment Date on which interest has been paid to
but excluding the then current Payment Date or, if no interest has yet been
paid, from the date hereof. Interest will be computed on the basis of a 360-day
year consisting of twelve 30-day months. Such principal of and interest on this
Note shall be paid in the manner specified in the Indenture.

 

The principal of
and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts. All payments made by the Issuer with respect to this
Note shall be applied first to interest due and payable on this Note as
provided above and then to the unpaid principal of this Note.

 

Reference is made
to the further provisions of this Note set forth on the reverse hereof, which
shall have the same effect as though fully set forth on the face of this Note.

 

Unless the
certificate of authentication hereon has been executed by the Indenture Trustee
by manual signature, this Note shall not be entitled to any benefit under the
Indenture referred to on the reverse hereof, or be valid or obligatory for any
purpose.

 

 

IN WITNESS
WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer.

 

	
  Dated: [Month
  Day], 200X

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CNH EQUIPMENT TRUST 200X-Y

  
	
   

  	
   

  
	
   

  	
  By:

  	
  The Bank of New York,

  
	
   

  	
   

  	
  not in its individual capacity but solely as Trustee under the

  Trust Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the
Notes designated above and referred to in the within-mentioned Indenture.

 

	
  Dated: [Month
  Day], 200X

  	
   

  
	
   

  	
   

  
	
   

  	
  [JPMORGAN
  CHASE BANK, N.A.],

  
	
   

  	
  not in its individual
  capacity but solely as Indenture Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
					

 

 

[REVERSE
OF NOTE]

 

This Note is one
of a duly authorized issue of Notes of the Issuer, designated as its           %
Class C Asset Backed Notes (herein called the “Class C Notes” or the “Notes”), all issued under an Indenture
dated as of [Month Day], 200X (such Indenture, as supplemented or amended, is
herein called the “Indenture”) between the Issuer and [JPMorgan
Chase Bank, N.A.], not in its individual capacity but solely as trustee (the “Indenture Trustee”, which term includes any
successor Indenture Trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Notes. The Notes are subject to all terms of the Indenture. All
terms used in this Note that are not otherwise defined herein and that are
defined in the Indenture shall have the meanings assigned to them in or
pursuant to the Indenture.

 

The Class C Notes
are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in the Indenture, but the interest of the Class C
Noteholders in such collateral is subordinated to the rights of the Class A
Noteholders and the Class B Noteholders.

 

The Issuer shall
pay interest on overdue installments of interest at the Class C Note Rate to
the extent lawful.

 

Each Noteholder or
Note Owner, by acceptance of a Note, or, in the case of a Note Owner, a
beneficial interest in the Note, covenants and agrees that no recourse may be
taken, directly or indirectly, with respect to the obligations of the Issuer or
the Indenture Trustee on the Notes or under the Indenture or any certificate or
other writing delivered in connection therewith, against: (i) the Indenture
Trustee or the Trustee in their individual capacities, (ii) any owner of a
beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director or employee of: (a) the Indenture Trustee or the
Trustee in their individual capacities, (b) any holder of a beneficial interest
in the Issuer, the Trustee or the Indenture Trustee or of (c) any successor or
assign of the Indenture Trustee or the Trustee in their individual capacities,
except as any such Person may have expressly agreed and except that any such
partner, owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such partner,
owner or beneficiary.

 

It is the intent
of the Seller, the Servicer, the Noteholders and the Note Owners that, for
purposes of federal and State income tax and any other tax measured in whole or
in part by income, the Notes qualify as indebtedness of the Trust. Each
Noteholder or Note Owner, by acceptance of a Note, or, in the case of a Note
Owner, a beneficial interest in a Note, agrees to treat, and to take no action
inconsistent with the treatment of, the Notes for such tax purposes as
indebtedness of the Trust.

 

Each Noteholder or
Note Owner, by acceptance of a Note, or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that by accepting the
benefits of the Indenture that such Noteholder will not at any time institute
against the Seller or the Issuer, or

 

 

join in any institution against the Seller or the Issuer of, any
bankruptcy, reorganization or arrangement, insolvency or liquidation
proceedings under any United States federal or State bankruptcy or similar law
in connection with any obligations relating to the Notes, the Indenture or the
Basic Documents.

 

Each Noteholder or
Note Owner, by acceptance of a Note, or in the case of Note Owner, a beneficial
interest in the Note, represents that either (a) it is not (i) an employee
benefit plan (as defined in Section 3(3) of ERISA) that is subject to the
provisions of Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of
the Code, (iii) any entity whose underlying assets include plan assets of any
of the foregoing (each a “Benefit Plan”), or (iv) a governmental plan (as
defined in Section 3(32) of ERISA) that is subject to any law substantially
similar to ERISA or Section 4975 of the Code or (b) the purchase and holding of
the Note, or a beneficial interest therein, will not result in a non-exempt
prohibited transaction under Section 406 of ERISA, Section 4975 of the Code or
any substantially similar applicable law.

 

This Note and the
Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations,
rights and remedies of the parties hereunder and thereunder shall be determined
in accordance with such laws.

 

No reference
herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and
unconditional, to pay the principal of and interest on this Note at the times,
place and rate, and in the coin or currency, herein prescribed.

 

Anything herein to
the contrary notwithstanding, except as expressly provided in the Basic
Documents, neither [JPMorgan Chase Bank, N.A.], in its individual capacity, any
owner of a beneficial interest in the Issuer, nor any of their respective
partners, beneficiaries, agents, officers, directors, employees, successors or assigns
shall be personally liable for, nor shall recourse be had to any of them for,
the payment of principal of or interest on, or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in
this Note or the Indenture, it being expressly understood that said covenants,
obligations and indemnifications have been made by the Indenture Trustee for
the sole purposes of binding the interests of the Indenture Trustee in the
assets of the Issuer. The Holder of this Note by the acceptance hereof, and
each Note Owner by the acceptance of a beneficial interest herein, each agrees
that, except as expressly provided in the Basic Documents, in the case of an
Event of Default under the Indenture, the Holder and Note Owner shall have no
claim against any of the foregoing for any deficiency, loss or claim therefrom;
provided, however,
that nothing contained herein shall be taken to prevent recourse to, and
enforcement against, the assets of the Issuer for any and all liabilities,
obligations and undertakings contained in the Indenture or in this Note.

 

 

ASSIGNMENT

 

	
  Social Security
  or taxpayer I.D. or other identifying number of assignee

  	
   

  
	
   

  	
   

  
	
  FOR VALUE
  RECEIVED, the undersigned hereby sells, assigns and transfers unto

  	
   

  
	
   

  	
   

  
	
  (name and address of assignee)

  	
   

  
	
   

  	
   

  
	
  the within Note
  and all rights thereunder, and hereby irrevocably constitutes and appoints                                                  ,
  attorney, to transfer said Note on the books kept for registration thereof,
  with full power of substitution in the premises.

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
  *

  	
  /

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature
  Guaranteed:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signatures must
  be guaranteed by an “eligible guarantor institution” meeting the requirements
  of the Note Registrar, which requirements include membership or participation
  in STAMP or such other “signature guarantee program” as may be determined by
  the Note Registrar in addition to, or in substitution for, STAMP, all in
  accordance with the Securities Exchange Act of 1934, as amended.

  	
   

  
									

 

*/                                     NOTE:
The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular without alteration, enlargement or any change whatsoever.

 

 

 EXHIBIT B

to Indenture

FORM OF SECTION 3.9 OFFICER’S CERTIFICATE

 

                              ,            

 

[JPMorgan Chase
Bank, N.A.]

227 West Monroe Street, 26th Floor

Chicago, Illinois  60606

 

Pursuant to
Section 3.9 of the Indenture, dated as of [Month Day], 200X (the “Indenture”) between CNH Equipment Trust
200X-Y (the “Issuer”) and [JPMorgan Chase Bank, N.A.],
as Indenture Trustee, the undersigned hereby certifies that:

 

(a) a review
of the activities of the Issuer during the previous fiscal year and of
performance under the Indenture has been made under the supervision of the
undersigned; and

 

(b) to the
best knowledge of the undersigned, based on such review, the Issuer has
complied with all conditions and covenants under the Indenture throughout such
year. [or, if there has been a default in the compliance of any such condition
or covenant, this certificate is to specify each such default known to the
undersigned and the nature and status thereof]

 

	
   

  	
  CNH EQUIPMENT TRUST 200X-Y

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

 

Schedule P

 

1.             General.  The Indenture creates, or with respect to the
Receivables that are Subsequent Receivables upon the transfer of such
Subsequent Receivables pursuant to the Subsequent Transfer Assignment will
create, a valid and continuing security interest (as defined in the applicable
UCC) in all of the Issuer’s right, title and interest in, to and under (i) the
Receivables, (ii) the Liquidity Receivables Purchase Agreements (only with
respect to CNHCA Owned Contracts and NH Owned Contracts), (iii) the Sale and
Servicing Agreement (including all rights of the Seller under the Liquidity
Receivables Purchase Agreements and the CNHCA Purchase Agreement assigned to
the Issuer pursuant to the Sale and Servicing Agreement and (iv) the Interest
Rate Swap Agreement, in each case, in favor of the Indenture Trustee, which,
(a) security interest is enforceable upon execution of the Indenture against
creditors of and purchasers from the Issuer, as such enforceability may be
limited by applicable Debtor Relief Laws, now or hereafter in effect, and by
general principles of equity (whether considered in a  suit at law or in equity), and (b) upon
filing of the financing statements described in clause 4 below will be prior to
all other Liens.

 

2.             Characterization.  The Receivables constitute “tangible chattel
paper” within the meaning of UCC Section 9-102. 
The rights granted under the agreements described in clause 1 (ii)
through (iv) constitute “general intangibles” within the meaning of UCC Section
9-102.  The Issuer has taken all steps
necessary to perfect its security interest in the property securing the
Receivables.

 

3.             Creation.  Immediately prior to the grant to the
Indenture Trustee pursuant to the Indenture, the Issuer owns and has good and
marketable title to, or has a valid security interest in, the Receivables free
and clear of any Lien, claim or encumbrance of any Person.

 

4.             Perfection.  The Issuer has caused or will have caused,
within ten days of the Closing Date, the filing of all appropriate financing
statements in the proper filing office in the appropriate jurisdictions under
applicable law in order to perfect the security interest granted to the
Indenture Trustee under the  Indenture in
the Receivables.  With respect to the
Collateral that constitutes tangible chattel paper, the Servicer or a
Subservicer, as custodian, received possession of such tangible chattel paper
after the Indenture Trustee received a written acknowledgment from such
custodian that it is acting solely as agent of the Indenture Trustee.  All financing statements filed under this
clause 4 contain a statement that “A purchase of or security interest in any
collateral described in this financing statement will violate the rights of the
Secured Party”.

 

5.             Priority.  Other than the security interest granted to the
Indenture Trustee pursuant to the Indenture, the Issuer has not pledged,
assigned, sold, granted a security interest in, or otherwise conveyed any of
the Collateral.  The Issuer has not
authorized the filing of and is not aware of any financing statements against
the Issuer that include a description of collateral covering the Collateral
other than any financing statement (i) relating to the security interest
granted to the Indenture Trustee under the Indenture, (ii) that has been
terminated, or (iii) that has been granted pursuant to the terms of the Basic
Documents.  None of the tangible chattel
paper that constitutes or evidences the Collateral has any marks or notations
indicating that they

 

 

have pledged, assigned or otherwise conveyed to any
Person other than the Indenture Trustee. 
The Issuer is not aware of any judgment, ERISA or tax lien filings
against it.

 

6.             Survival
of Perfection Representations. 
Notwithstanding any other provision of the Indenture or any other Basic
Document, the Perfection Representations contained in this Schedule P shall be
continuing, and remain in full force and effect.

 

7.             No
Waiver.  The parties to the
Indenture: (i) shall not, without obtaining a confirmation of the then-current
rating of the Notes, waive any of the representations and warranties in this
Schedule P (the “Perfection Representations”); (ii) shall provide the Ratings
Agencies with prompt written notice of any breach of the Perfection
Representations, and shall not, without obtaining a confirmation of the
then-current rating of the Notes (as determined after any adjustment or
withdrawal of the ratings following notice of such breach) waive a breach of
any of the Perfection Representations.

 

8.             Servicer to
Maintain Perfection and Priority. 
The Servicer covenants that, in order to evidence the interests of
Issuer and the Indenture Trustee under this Agreement, Servicer shall take such
action, or execute and deliver such instruments (other than effecting a Filing
(as defined below), unless such Filing is effected in accordance with this
paragraph) as may be necessary or advisable (including, without limitation,
such actions as are requested by Issuer) to maintain and perfect, as a first
priority interest, the Indenture Trustee’s security interest in the Receivables.  Servicer shall, from time to time and within
the time limits established by law, prepare and present to the Indenture
Trustee for the Indenture Trustee to authorize (based in reliance on the
Opinion of Counsel hereinafter provided for) the Servicer to file, all
financing statements, amendments, continuations, initial financing statements
in lieu of a continuation statement, terminations, partial terminations,
releases or partial releases, or any other filings necessary or advisable to
continue, maintain and perfect the Indenture Trustee’s security interest in the
Receivables as a first-priority interest (each a “Filing”).  Servicer shall present each such Filing to
the Indenture Trustee together with (x) an Opinion of Counsel to the effect
that such Filing is (i) consistent with grant of the security interest to the
Indenture Trustee pursuant to the Granting Clause of this Agreement, (ii)
satisfies all requirements and conditions to such Filing in this Agreement and
(iii) satisfies the requirements for a Filing of such type under the Uniform
Commercial Code in the applicable jurisdiction (or if the Uniform Commercial
Code does not apply, the applicable statute governing the perfection of
security interests), and (y) a form of authorization for the Indenture Trustee’s
signature.  Upon receipt of such Opinion
of Counsel and form of authorization, Issuer shall promptly authorize in
writing Servicer to, and Servicer shall, effect such Filing under the Uniform
Commercial Code without the signature of the Indenture Trustee or Issuer where
allowed by applicable law. 
Notwithstanding anything else in the Indenture to the contrary, the
Servicer shall not have any authority to effect a Filing without obtaining
written authorization from the Issuer in accordance with this paragraph (c).

 

 

APPENDIX A

Definitions

 

“180-Day
Receivable” with respect to any calendar month means
any Receivable as to which a scheduled payment is 180 days or more past due by
the last day of such calendar month and which has not become a Liquidated
Receivable or a Repossessed Receivable; provided that a
Receivable shall cease to be a 180-Day Receivable if the Servicer subsequently
receives payment in full of each scheduled payment that was previously 180-days
or more past due.

 

“A-1 Note”
means any of the Issuer’s      % Class A-1 Asset
Backed Notes.

 

“A-1 Note
Final Scheduled Maturity Date” means [Month Day] 200X.

 

“A-1 Note
Rate” means      % per annum,
computed on the basis of the actual number of days in that Interest Period and
a year of 360 days.

 

“A-1
Noteholders” means the holders of record of the A-1
Notes.

 

“A-2 Note”
means any of the Issuer’s      % Class A-2 Asset
Backed Notes.

 

“A-2 Note
Final Scheduled Maturity Date” means the [Month] 200X
Payment Date.

 

“A-2 Note
Rate” means      % per annum,
computed on the basis of a 360-day year of twelve 30-day months.

 

“A-2
Noteholders” means the holders of record of the A-2
Notes.

 

“A-3 Note”
means any of the Issuer’s      % Class A-3 Asset
Backed Notes.

 

“A-3 Note
Final Scheduled Maturity Date” means the [Month] 20XX
Payment Date.

 

“A-3 Note
Rate” means      % per annum,
computed on the basis of a 360-day year of twelve 30-day months.

 

“A-3
Noteholders” means the holders of record of the A-3
Notes.

 

“A-4a Note”
means any of the Issuer’s Floating Rate Class A-4a Asset Backed Notes.

 

“A-4a Note
Final Scheduled Maturity Date” means the [Month] 20XX
Payment Date.

 

“A-4a Note
Rate” means, for each Interest Period, a rate per
annum equal to One-Month LIBOR for that Interest Period plus      %
per annum, computed on the basis of the actual number of days in that Interest
Period and a year of 360 days.

 

“A-4a
Noteholders” means the holders of record of the A-4a
Notes.

 

“A-4b Note”
means any of the Issuer’s      % Class A-4b Asset
Backed Notes.

 

A-1

 

“A-4b Note
Final Scheduled Maturity Date” means the [Month] 20XX
Payment Date.

 

“A-4b Note
Rate” means      % per annum,
computed on the basis of a 360-day year of twelve 30-day months.

 

“A-4b
Noteholders” means the holders of record of the A-4b
Notes.

 

“Act”
is defined in Section 11.3(a) of the Indenture.

 

“Administration
Agreement” means the Administration Agreement dated as
of [Month Day], 200X among the Administrator, the Issuer and the Indenture
Trustee.

 

“Administration
Fee” means the fee payable to the Administrator
pursuant to Section 3 of the Administration Agreement.

 

“Administrator”
means NH Credit, or any successor Administrator under the Administration
Agreement.

 

“Affiliate”
means, with respect to any specified Person, 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”
and “controlled” have meanings correlative to the foregoing.  The term “Affiliated” has a correlative
meaning.

 

“Amount
Financed” with respect to a Receivable means the
amount advanced under such Receivable toward the purchase price of the Financed
Equipment and any related costs, including the Termination Value, and any
insurance financed thereby.

 

“Annual
Percentage Rate” or “APR”
of a Receivable means, with respect to a Retail Installment Contract, the
annual rate of finance charges in effect from time to time under the related
Contract, and with respect to a Lease, the implicit annual rate of finance
charges used to determine the periodic rental payments stated in the related
Contract, adjusted to reflect an annual yield, compounded monthly.

 

“Asset
Balance” means, for any Payment Date, the sum of the
Pool Balance and any amounts on deposit in the Pre-Funding Account, in each
case as of the beginning of the current Collection Period.  For purposes of the calculation of any amount
on deposit in the Pre-Funding Account, any amount in the Pre-Funding Account
that is to be paid as principal on the Notes on the Payment Date falling in
that Collection Period in connection with the end of the Pre-Funding Period
shall be deemed to have been withdrawn from the Pre-Funding Account as of the
end of  the immediately preceding
Collection Period.

 

“Assignment”
is defined in Section 2.1 of the Sale and Servicing Agreement.

 

“Authorized
Officer” means, with respect to the Issuer, any
officer of the Trustee who is authorized to act for the Trustee in matters
relating to the Issuer and who is identified on the list 

 

A-2

 

of Authorized
Officers delivered by the Trustee to the Indenture Trustee on the Closing Date
(as such list may be modified or supplemented from time to time thereafter)
and, so long as the Administration Agreement is in effect, any Vice President,
Assistant Treasurer or more senior officer of the Administrator who is
authorized to act for the Administrator in matters relating to the Issuer and
to be acted upon by the Administrator pursuant to the Administration Agreement
and who is identified on the list of Authorized Officers delivered by the
Administrator to the Indenture Trustee on the Closing Date (in each case as
such list may be modified or supplemented from time to time thereafter).

 

“Average
Delinquency Ratio” on any Payment Date means the
average of the Delinquency Ratios for the preceding three calendar months.

 

“Average
Delinquency Ratio Test” for the Payment Date in a
month specified below will be met if the Average Delinquency Ratio for such
Payment Date is less than the percentage specified opposite such Payment Date:

 

	
  Payment Date

  	
   

  	
  Percentage

  	
   

  
	
  [Month] 200X

  	
   

  	
   

  	
  %

  
	
  [Month] 200X

  	
   

  	
   

  	
  %

  
	
  [Month] 200X

  	
   

  	
   

  	
  %

  

 

“Backup Servicer” means Systems &
Services Technologies, Inc., a Delaware corporation, and its successors and
assigns.

 

“Backup Servicer Account” means the account
designated as such, established and maintained pursuant to Section 5.1(a)(vii)
of the Sale and Servicing Agreement.

 

“Backup Servicer Account Initial Deposit”
means $        .

 

“Backup Servicer Account Property” means the Backup Servicer Account, all amounts and
investments held from time to time in the Backup Servicer Account (whether in
the form of deposit accounts, physical property, book-entry securities,
uncertificated securities or otherwise), and all proceeds of the foregoing.

 

“Backup Servicer Account Required Amount”
means, initially, the Backup Servicer Account Initial Deposit; provided, however,
the Backup Servicer Account Required Amount may be reduced by the Servicer if
(a) Moody’s provides written confirmation that such reduction will not result
in a downgrade or withdrawal by Moody’s of its then current rating of any
Outstanding Class of the Notes, (b) SST is no longer acting as Backup Servicer
or has otherwise consented to such reduction (such consent shall not be
unreasonably withheld) and (c) SST as Backup Servicer has been paid any accrued
and unpaid amounts due to it.

 

“Backup Servicer Account Shortfall Amount”
is defined in Section 4.12 of the Sale and Servicing Agreement.

 

“Backup Servicer Expenses” is defined in
Section 4.12 of the Sale and Servicing Agreement.

 

A-3

 

“Backup Servicer Fees” means the fees
payable to the Backup Servicer pursuant to the Backup Servicing Agreement, the
Sale and Servicing Agreement and the Indenture.

 

“Backup Servicing Agreement” means the
agreement entered into by the Issuer, the Seller, the Servicer and the Backup
Servicer.

 

“Bankruptcy Code” means the United
States Bankruptcy Code, Title 11 of the United States Code, as amended.

 

“Basic
Documents” means the Certificate of Trust, the Trust
Agreement, the CNHCA Purchase Agreement, the Sale and Servicing Agreement, the
Indenture, the Administration Agreement, the Interest Rate Swap Agreement, the
Backup Servicing Agreement and other documents and certificates delivered in
connection therewith.

 

“Benefit
Plan” is defined in Section 3.4 of the Trust
Agreement.

 

“Book-Entry
Notes” means a beneficial interest in the Notes of a
particular Class, ownership and transfers of which shall be made through book
entries by a Clearing Agency as described in Section 2.10 of the Indenture.

 

“Business
Day” means any day other than a Saturday, a Sunday or
a day on which banking institutions or trust companies in The City of New York,
New York, Chicago, Illinois, New Holland, Pennsylvania, St. Joseph, Missouri
and Racine, Wisconsin are authorized or obligated by law, regulation or
executive order to remain closed.

 

“Certificate
Distribution Account” is defined in Section 5.1 of the
Trust Agreement.

 

“Certificate
of Trust” means the Certificate of Trust substantially
in the form of Exhibit B to the Trust Agreement to be filed for the Trust
pursuant to Section 3810(a) of the Trust Statute.

 

 “Certificate Register”
and “Certificate Registrar” means the
register mentioned and the registrar appointed pursuant to Section 3.4 of the
Trust Agreement.

 

“Certificated
Security” has the meaning assigned thereto in Section
8-102(a)(4) of the UCC.

 

“Certificateholder”
means a Person in whose name a Trust Certificate is registered.

 

“Certificates”
means the Trust Certificates (as defined in the Trust Agreement).

 

“Class”
means any class of Notes.

 

“Class A
Noteholder” means any holder of a Class A Note.

 

“Class A
Notes” means the A-1 Notes, the A-2 Notes, the A-3
Notes, the A-4a Notes and the A-4b Notes.

 

“Class A Swap Agreement”
means the Class A-4a Swap Agreement.

 

A-4

 

“Class A
Swap Termination Payments” or “Swap
Termination Payment” means the Class A-4a Swap Termination Payment.

 

“Class A-4a Counterparty”
means BNP Paribas and any other counterparty under
the Class A-4a Swap Agreement or
any successor agreement to the Class A-4a Swap Agreement.

 

“Class A-4a
Net Swap Payment” means, for any Payment Date, the net
amount payable by the Issuer under the Class A-4a Swap Agreement (excluding any Class A-4a Swap
Termination Payment).

 

“Class A-4a
Net Swap Receipt” means, for any Payment Date, the net
amount payable by the Class A-4a Counterparty under the Class A-4a Swap
Agreement (excluding any Class A-4a Swap Termination Payment).

 

“Class A-4a Reference Banks”
means four major banks in the London interbank market selected by the Class
A-4a Counterparty.

 

“Class A-4a Representative Amount”
means, on any LIBOR Determination Date, an amount equal to the outstanding
principal amount of the A-4a Notes on the immediately preceding Payment Date or
the Closing Date, as applicable.

 

“Class A-4a Swap Agreement”
means an interest rate swap agreement between the Trust and the Class A-4a
Counterparty substantially in the form of Exhibit G to the Sale and Servicing
Agreement or such other form as shall have satisfied the Rating Agency
Condition.

 

“Class A-4a Swap Termination Payment”
means any termination payment due under the terms of the Class A-4a Swap
Agreement.

 

“Class A-4a
USD-LIBOR Reference Banks Rate” means, for each
Interest Period, the rate determined on the basis of the rates at which
deposits in U.S. Dollars are offered by the Class A-4a Reference Banks at
approximately 11:00 a.m., London time, on the related LIBOR Determination Date
to prime banks in the London interbank market for a period of one month
commencing on the first day of the Interest Period for which such rate is being
determined and in a Class A-4a Representative Amount.  The Class A-4a Counterparty (in its capacity
as calculation agent under the Class A-4a Swap Agreement) will request the
principal London office of each of the Class A-4a Reference Banks to provide a
quotation of its rate.  If at least two such
quotations are provided, the rate for that Interest Period will be the
arithmetic mean of the quotations.  If
fewer than two quotations are provided as requested, the rate for that Interest
Period will be the arithmetic mean of the rates quoted by major banks in New
York City, selected by the Class A-4a Counterparty, at approximately 11:00
a.m., New York time, on the related LIBOR Determination Date for loans in U.S.
Dollars to leading European banks for a period for which such rate is being
determined and in a Class A-4a Representative Amount.

 

“Class B
Note” means any of the Issuer’s      %
Class B Asset Backed Notes.

 

“Class B
Note Final Scheduled Maturity Date” means the [Month]
20XX Payment Date.

 

A-5

 

“Class B
Note Rate” means      % per
annum, computed on the basis of a 360-day year of consisting of twelve 30-day
months.

 

“Class B
Noteholder” means any holder of a Class B Note.

 

“Class C
Note” means any of the Issuer’s      %
Class C Asset Backed Notes.

 

“Class C
Note Final Scheduled Maturity Date” means the [Month]
20XX Payment Date.

 

“Class C
Note Rate” means      % per
annum, computed on the basis of a 360-day year of consisting of twelve 30-day
months.

 

“Class C
Noteholder” means any holder of a Class C Note.

 

“Class Final Scheduled Maturity Date” means, as to any Class
of Notes, the final scheduled maturity date for that Class, as designated by
the defined term that begins with the designation of that Class and ends with
the phrase “Final Scheduled Maturity Date.” 
For instance, the Class Final Scheduled Maturity Date for the A-1 Notes
is the A-1 Note Final Scheduled Maturity Date.

 

“Class
Interest Amount” means, with respect to any Payment
Date (the “current Payment Date”) and any Class of Notes, an amount equal to
the sum of (a) the aggregate amount of interest accrued on that Class of Notes
at the applicable Interest Rate from and including the preceding Payment Date
(or, in the case of the initial Payment Date, from and including the Closing Date)
to but excluding the current Payment Date plus (b) the Class Interest
Shortfall for that Class of Notes and the current Payment Date.

 

“Class
Interest Shortfall” means, with respect to any Payment
Date (the “current Payment Date”) and any Class of Notes, the excess of the
Class Interest Amount for the preceding Payment Date over the amount in respect
of interest on that Class of Notes that was actually deposited in the Note
Distribution Account on such preceding Payment Date, plus interest on such
excess, to the extent permitted by law, at a rate per annum equal to the
Interest Rate on that Class of Notes, from such preceding Payment Date to but
excluding the current Payment Date.

 

“Clearing
Agency” means an organization registered as a “clearing
agency” pursuant to Section 17A of the Exchange Act that has been designated as
the “Clearing Agency” for purposes of the Indenture.

 

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

 

“Closing
Date” means [Month Day], 200X.

 

“CNH
America” means CNH America LLC, a Delaware limited
liability company, and its successors and assigns.

 

A-6

 

“CNH Global”
means CNH Global N.V., a company organized in the Kingdom of The Netherlands,
and its successors and assigns.

 

“CNHCA”
means CNH Capital America LLC, a Delaware limited liability company, and its
successors and assigns.

 

“CNHCA
Assets” is defined in Section 2.2 of the CNHCA
Purchase Agreement.

 

“CNHCA
Assignment” means the document of assignment attached
to the CNHCA Purchase Agreement as Exhibit A.

 

“CNHCA
Liquidity Receivables Purchase Agreement” is defined
in the Recitals of the CNHCA Purchase Agreement.

 

“CNHCA Owned Contracts” is
defined in the Recitals of the CNHCA Purchase Agreement.

 

“CNHCA
Purchase Agreement” means the Purchase Agreement dated
as of [Month Day], 200X between the Seller and CNHCA, as the same may be
amended and supplemented from time to time, which term shall also include, as
the context requires, the CNHCA Liquidity Receivables Purchase Agreement.

 

“CNHCA
Purchased Contracts” is defined in the Recitals of the
CNHCA Purchase Agreement.

 

“CNHCA
Receivables” is defined in the Recitals of the CNHCA
Purchase Agreement.

 

“CNHCA
Subsequent Transfer Assignment” is defined in Section
4.1(b)(i) of the CNHCA Purchase Agreement.

 

“CNHCR”
means CNH Capital Receivables LLC, a Delaware limited liability company, and
its successors in interest to the extent permitted hereunder.

 

“CNHCR
Assets” is defined in Section 2.2 of the Sale and
Servicing Agreement.

 

“Code” means
the Internal Revenue Code of 1986, as amended from time to time, and Treasury
Regulations promulgated thereunder.

 

“Collateral”
is defined in the Granting Clause of the Indenture.

 

“Collection
Account” means the account designated as such,
established and maintained pursuant to Section 5.1(a) of the Sale and Servicing
Agreement.

 

“Collection
Period” means, with respect to any Payment Date, the
period from and including the end of the preceding Collection Period (or, if
for the first Payment Date, the day after the Initial Cutoff Date) to and
including the last day of the calendar month preceding the calendar month in
which the Payment Date occurs.

 

“Commission”
means the Securities and Exchange Commission.

 

A-7

 

“Contract”
means a Retail Installment Contract or a Lease.

 

“Contract
Value” means, with respect to any day (including the
Initial Cutoff Date or any Subsequent Cutoff Date), the sum of (a) the present
value of the future Scheduled Payments discounted monthly at an annual rate
equal to Specified Discount Factor; plus (b) the amount of any past due
payments.

 

“Control”
with respect to any Federal Book Entry Security, the Indenture Trustee shall
have obtained control if:

 

(i)  the
Indenture Trustee is a participant in the book entry system maintained by the
Federal Reserve Bank that is acting as fiscal agent for the issuer of such
Federal Book Entry Security, and such Federal Reserve Bank has indicated by
book entry that such Federal Book Entry Security has been credited to the
Indenture Trustee’s securities account in such book entry system; or

 

(ii) (a) the
Indenture Trustee (1) is registered on the records of a Securities Intermediary
as the person having a Securities Entitlement in respect of such Federal Book
Entry Security against such Securities Intermediary; or (2) has obtained the
agreement, in writing, of the Securities Intermediary for such Securities
Entitlement that such Securities Intermediary will comply with Entitlement
Orders of the Indenture Trustee without further consent of any other Person;
and (b) the Securities Intermediary is a participant in the book entry system
maintained by the Federal Reserve Bank that is acting as fiscal agent for the
issuer of such Federal Book Entry Security; and (c) such Federal Reserve Bank
has indicated by book entry that such Federal Book Entry Security has been
credited to the Securities Intermediary’s securities account in such book entry
system.

 

“Corporate
Trust Office” means, (a) with respect to the
Indenture Trustee, the principal office of the Indenture Trustee in New York,
New York at which at any particular time its corporate trust business shall be
administered, and all notices to the Indenture Trustee shall be directed to the
Indenture  Trustee’s office located at
227 West Monroe Street, 26th Floor, Chicago, Illinois  60606 Attention:  Institutional Trust Services Group/CNH
Equipment Trust 200X-Y (facsimile no.             );
or at such other address as the Indenture Trustee may designate from time to
time by notice to the Noteholders and the Seller, or the principal corporate
trust office of any successor Indenture Trustee (the address of which the
successor Indenture Trustee will notify the Noteholders and the Seller), and
(b) with respect to the Trustee, the principal corporate trust office of the
Trustee located at 101 Barclay Street, Floor 8W, New York, New York 10286,
Attention: Corporate Trust Administration - Asset Backed Finance Unit; or at
such other address as the Trustee may designate from time to time by notice to
the Certificateholders and the Depositor, or the principal corporate trust
office of any successor Trustee (the address of which the successor Trustee
will notify the Certificateholders and the Depositor).

 

“Counterparty” means the Class A-4a
Counterparty.

 

“Cumulative
Net Loss Ratio” on any Payment Date means the ratio,
expressed as a percentage, of (a) the aggregate Measured Losses on the
Receivables since their cutoff date

 

A-8

 

through the
last day of the related Collection Period, to (b) the sum of (i) the Pool
Balance as of the Initial Cutoff Date and (ii) the sum of the Contract Values
of all Receivables purchased with amounts on deposit in the Pre-Funding
Account, each as of the related cutoff date for the related Receivable.

 

“Cumulative
Net Loss Ratio Test” for the Payment Date occurring in
a month specified below will be met if the Cumulative Net Loss Ratio for such
Payment Date is less than the percentage specified opposite such Payment Date:

 

	
  Payment Date

  	
   

  	
  Percentage

  	
   

  
	
  [Month] 200X

  	
   

  	
   

  	
  %

  
	
  [Month] 200X

  	
   

  	
   

  	
  %

  
	
  [Month] 200X

  	
   

  	
   

  	
  %

  

 

“Dealer” means
the dealer (which may include retail outlets owned in whole or in part by CNH
America LLC who originated and assigned the respective Receivable to CNHCA or
NH Credit, as applicable, under a Dealer Agreement.

 

“Dealer
Agreement” means the retail financing agreement,
warranty agreement or other agreement between the applicable Dealer and CNHCA
or NH Credit, as applicable, which governs the terms of sales of Receivables
from that Dealer to CNHCA or NH Credit, as applicable.

 

“Default”
means any occurrence that is, or with notice or the lapse of time or both would
become, an Event of Default.

 

“Definitive
Notes” is defined in Section 2.10 of the Indenture.

 

“Delinquency
Ratio” for any calendar month means the ratio,
expressed as a percentage, of (a) the sum, for all of the Receivables, of all
scheduled payments that are 60 days or more past due (other than Purchased
Receivables and Liquidated Receivables) as of the end of such month, determined
in accordance with the Servicer’s then-current practices, to (b) the Pool
Balance as of the last day of such month.

 

“Delivery” means,
when used with respect to Trust Account Property:

 

(i)            with respect to a Certificated
Security, transfer of such Certificated Security to the Indenture Trustee or
its nominee or custodian by physical delivery to the Indenture Trustee or its
nominee or custodian, endorsed to, or registered in the name of, the Indenture
Trustee or its nominee or custodian or endorsed in blank; and

 

(ii)           with respect to any such Trust
Account Property that constitutes an Uncertificated Security (including any
investments in money market mutual funds, but excluding any Federal Book Entry
Security), (A) registration of the Indenture Trustee as the registered owner by
the issuer, or (B) satisfaction of the requirements for obtaining “control”
pursuant to Section 8-106(c)(2) of the UCC.

 

“Depositor”
means the Seller in its capacity as Depositor under the Trust Agreement.

 

A-9

 

“Determination
Date” means, with respect to any Transfer Date, the
second Business Day prior to such Transfer Date.

 

“Dominion”
means Dominion Bond Rating Service, Inc., or its successor.

 

“Either/or
Lease” means any Lease with a Termination Value of
greater than      % of the purchase price of the
Financed Equipment subject to such Lease.

 

“Eligible
Deposit Account” means either: (a) a segregated
account with an Eligible Institution or any other segregated account, the
deposit of funds in which satisfies the Rating Agency Condition or (b) a
segregated trust account with the corporate trust department of a depository
institution organized under the laws of the United States of America or any
State (or any domestic branch of a foreign bank), having corporate trust powers
and acting as trustee for funds deposited in such account, so long as any of
the securities of such depository institution have a credit rating from each
Rating Agency in one of its generic rating categories that signifies investment
grade.

 

“Eligible
Institution” means: (a) the corporate trust department
of the Indenture Trustee or the Trustee or (b) a depository institution
organized under the laws of the United States of America or any State (or any
domestic branch of a foreign bank), which: (i) has either a long-term or
short-term senior unsecured debt rating or certificate of deposit rating
acceptable to the Rating Agencies and (ii) whose deposits are insured by the
FDIC.

 

“Eligible
Investments” mean book-entry securities, negotiable
instruments or securities represented by instruments in bearer or registered
form that evidence:

 

(a)           direct obligations of, and
obligations fully guaranteed as to timely payment by, the United States of
America;

 

(b)           demand deposits, time deposits or certificates
of deposit of any depository institution or trust company incorporated under
the laws of the United States of America or any State (or any domestic branch
of a foreign bank) and subject to supervision and examination by federal or
State banking or depository institution authorities; provided, however, that at
the time of the investment or contractual commitment to invest therein, the
commercial paper or other short-term senior unsecured debt obligations (other
than such obligations the rating of which is based on the credit of a Person
other than such depository institution or trust company) thereof shall have a
credit rating from each of the Rating Agencies in the highest investment
category granted thereby;

 

(c)           commercial paper having, at the time
of the investment or contractual commitment to invest therein, a rating from
each of the Rating Agencies in the highest investment category granted thereby;

 

(d)           investments in money market funds
having a rating from each of the Rating Agencies in the highest investment
category granted thereby (including funds for which the Indenture Trustee or
the Trustee or any of their respective Affiliates is investment manager or
advisor); provided, that during the Funding Period no investments in money
market funds shall be made with funds in any Trust Account other than the
Collection Account;

 

A-10

 

(e)           bankers’ acceptances issued by any
depository institution or trust company referred to in clause (b);

 

(f)            repurchase obligations with respect
to any security that is a direct obligation of, or fully guaranteed as to
timely payment 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
clause (b); and

 

(g)           any other investment permitted by
each of the Rating Agencies in the highest investment category granted thereby
as set forth in writing delivered to the Indenture Trustee; provided, that
investments described in clauses (d) and (g) shall be made only so long as
making such investments will not require the Issuer to register as an
investment company under the Investment Company Act of 1940, as amended.

 

“Entitlement
Order” has the meaning assigned thereto in Section
8-102(a)(8) of the UCC.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

“Event of
Default” is defined in Section 5.1 of the Indenture.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as
amended.

 

“Executive
Officer” means, with respect to any corporation or
limited liability company, the Chief Executive Officer, Chief Operating
Officer, Chief Financial Officer, President, Executive Vice President, any Vice
President, the Secretary or the Treasurer of such corporation or limited
liability company; and with respect to any partnership, any general partner
thereof.

 

“Expected
Excess Spread” means, with respect to each Subsequent
Cutoff Date, an amount determined by the Servicer to represent excess cash
flows from the Receivables that can reasonably be expected to be available to
cover the amounts described in clause (a) of the definition of Required
Principal Supplement Account Balance; provided
that each Rating Agency has confirmed that use of such amount determined by the
Servicer in calculating the Required Principal Supplement Account Balance for
such Subsequent Transfer Date will not result in a withdrawal or downgrade of
its rating of any Class of Notes.

 

“Expenses”
is defined in Section 8.2 of the Trust Agreement.

 

“Federal
Book Entry Security” means an obligation
(i) issued by the U.S. Treasury, the Federal Home Loan Mortgage
Corporation or the Federal National Mortgage Association, or any other direct
obligation of, or obligation fully guaranteed as to timely payment of principal
and interest by, the United States of America, that is a book-entry security
held through the Federal Reserve System pursuant to federal book entry
regulations, and (ii) the perfection of a security interest in which is
governed pursuant to federal regulations by Article 8 of the UCC.

 

“FDIC”
means the Federal Deposit Insurance Corporation or any successor.

 

A-11

 

“Final
Scheduled Maturity Date” means the [Month] 20XX
Payment Date.

 

“Financed
Equipment” means property, including any over-the-road
trucks and trailers, agricultural, construction, forestry or other equipment,
together with all accessions thereto, securing an Obligor’s indebtedness under
a Retail Installment Contract, or subject to a Lease.

 

“Financial
Asset” has the meaning assigned thereto in Section
8-102(a)(9) of the UCC.

 

“Fitch” means Fitch, Inc.,
or its successor.

 

“Floating
Rate Notes” means the Class A-4a Notes.

 

“Funding
Period” means the period from and including the
Closing Date and ending on the earliest of: (a) the Determination Date on which
the amount on deposit in the Pre-Funding Account (after giving effect to any
transfers therefrom in connection with the transfer of Subsequent Receivables
to the Issuer on or before such Determination Date) is less than $      ,
(b) the date on which an Event of Default or a Servicer Default occurs, (c) the
date on which an Insolvency Event occurs with respect to the Seller or the
Servicer and (d) the close of business on the [Month] 200X Payment Date.

 

“Grant”
means mortgage, pledge, bargain, sell, warrant, alienate, remise, release,
convey, assign, transfer, create and grant a Lien upon and a security interest
in and right of set-off against, deposit, set over and confirm pursuant to the
Indenture, and other forms of the verb “to Grant” shall have correlative
meanings. A Grant of the Collateral or of any other agreement or instrument
shall include all rights, powers and options (but none of the obligations) of
the Granting party thereunder, including the immediate and continuing right to
claim for, collect, receive and give receipt for principal and interest payments
in respect of the Collateral and all other moneys payable thereunder, to give
and receive notices and other communications, to make waivers or other
agreements, to exercise all rights and options, to bring Proceedings in the
name of the Granting party or otherwise and generally to do and receive
anything that the Granting party is or may be entitled to do or receive
thereunder or with respect thereto.

 

“Holder”
means (a) with respect to a Note, the Person in whose name a Note is registered
on the Note Register and (b) with respect to a Certificate, a
Certificateholder, as the context may require.

 

“Indemnified
Parties” is defined in Section 8.2 of the Trust
Agreement.

 

“Indenture”
means the Indenture dated as of [Month Day], 200X between the Issuer and the
Indenture Trustee, as the same may be amended and supplemented from time to
time.

 

“Indenture
Trustee” means [JPMorgan Chase Bank, N.A.], a national
banking association, not in its individual capacity but solely as Indenture
Trustee under the Indenture, or any successor Indenture Trustee under the
Indenture.

 

“Independent”
means, when used with respect to any specified Person,
that the Person: (a) is in fact independent of the Issuer, any other obligor
upon the Notes, the Seller and any Affiliate of any of the foregoing Persons,
(b) does not have any direct financial interest or any

 

A-12

 

material
indirect financial interest in the Issuer, any such other obligor, the Seller
or any Affiliate of any of the foregoing Persons and (c) is not connected with
the Issuer, any such other obligor, the Seller or any Affiliate of any of the
foregoing Persons as an officer, employee, promoter, underwriter, trustee,
partner, director or Person performing similar functions.

 

“Independent
Certificate” means a certificate or opinion to be
delivered to the Indenture Trustee under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 11.1 of the
Indenture, made by an Independent appraiser or other expert appointed by an
Issuer Order in the exercise of reasonable care and approved by the Indenture
Trustee, and such opinion or certificate shall State that the signer has read
the definition of “Independent” in the Indenture and that the signer is
Independent within the meaning thereof.

 

“Initial Aggregate Statistical Contract Value” means $           
which amount is equal to the aggregate Statistical Contract Value of all
Initial Receivables as of the Initial Cutoff Date.

 

“Initial Assets” is defined
in Section 2.1 of the Sale and Servicing Agreement.

 

“Initial
CNHCA Assets” is defined in Section 2.1 of the CNHCA
Purchase Agreement.

 

“Initial
CNHCA Purchase Price” is defined in Section 2.1 of the
CNHCA Purchase Agreement.

 

“Initial CNHCA
Receivable” means any Contract included in the
schedule delivered by CNHCA to CNHCR on the Closing Date (which schedule may be
in the form of microfiche).

 

“Initial
Cutoff Date” means [Month Day], 200X.

 

“Initial
Cutoff Date APR” means      %
which is an annual rate that equals the weighted average APR of the Initial
Receivables as of the Initial Cutoff Date.

 

“Initial
Pool Balance” means: (i) the Pool Balance as of the
Initial Cutoff Date, which is $          
plus (ii) the aggregate Contract Value of all Subsequent Receivables sold to
the Issuer as of their respective Subsequent Cutoff Dates.

 

“Initial
Receivable” means any Contract included in the
schedule delivered by the Servicer to the Trustee on the Closing Date (which
schedule may be in the form of microfiche).

 

“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 federal or State bankruptcy,
insolvency or other similar 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 and in effect for a period of 60
consecutive days, or (b) the commencement by such Person of a voluntary case
under any applicable federal or State bankruptcy, insolvency or other similar
law now or hereafter in effect, or the consent by such Person to the entry of
an order for relief in an involuntary case under any such law, or the

 

A-13

 

consent by
such Person to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for
such Person or for any substantial part of its 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.

 

“Instruments”
has the meaning assigned thereto in Section 9-102(47) of the UCC.

 

“Interest
Period” means (a) with respect to the first Payment
Date, the period from and including the Closing Date to, but excluding, the
first Payment Date, and (b) with respect to any other Payment Date, the period
from and including the immediately preceding Payment Date to, but excluding,
that Payment Date.

 

“Interest
Rate” means (a) as to the A-1 Notes, the A-1 Note
Rate, (b) as to the A-2 Notes, the A-2 Note Rate, (c) as to the A-3 Notes, the
A-3 Note Rate, (d) as to the A-4a Notes, the A-4a Note Rate, (e) as to the A-4b
Notes, the A-4b Note Rate, (f) as to the Class B Notes, the Class B Note Rate
and (g) as to the Class C Notes, the Class C Note Rate.

 

“Interest
Rate Swap Agreement” means
the Class A-4a Swap Agreement.

 

“Investment
Earnings” means, with respect to any Payment Date, the
interest and other investment earnings (net of losses and investment expenses)
on amounts on deposit in the Trust Accounts to be deposited into the Collection
Account on the related Transfer Date pursuant to Section 5.1(b) of the Sale and
Servicing Agreement.

 

“Investment
Property” is defined in Section 9-102(49) of the UCC.

 

“Issuer” means
CNH Equipment Trust 200X-Y until a successor replaces it and, thereafter, means
the successor and, for purposes of any provision contained in the Indenture and
required by the TIA, each other obligor on the Notes.

 

“Issuer
Order” and “Issuer Request”
means a written order or request, respectively, signed in the name of the
Issuer by any one of its Authorized Officers and delivered to the Indenture
Trustee.

 

“Lease”
means a lease of agricultural, construction or forestry equipment.

 

“LIBOR
Determination Date” means the day that is two London
Banking Days preceding the first day of an Interest Period and with respect to
the first LIBOR Determination Date, the day that is two London Banking Days preceding the Closing
Date.

 

“Lien”
means a security interest, lien, charge, pledge, equity or encumbrance of any
kind, other than (i) tax liens, mechanics’ liens and any liens that attach to
the related Receivable by operation of law as a result of any act or omission
by the related Obligor and (ii) any lien against the Financed Equipment
resulting from a cross-collateralization provision in the related Contract.

 

A-14

 

“Liquidated
Receivable” means any Receivable liquidated by the
Servicer through the sale or other disposition of the related Financed
Equipment or that the Servicer has, after using all reasonable efforts to
realize upon the Financed Equipment, determined to charge off without realizing
upon the Financed Equipment.

 

“Liquidation
Proceeds” means, with respect to any Liquidated
Receivable, the moneys collected in respect thereof from whatever source
(including the proceeds of insurance policies with respect to the related
Financed Equipment or Obligor and payments made by a Dealer pursuant to the
related Dealer Agreement with respect to such Receivable (other than amounts
paid from Dealer reserve accounts maintained with CNHCA or NH Credit)), other
than Recoveries, net of the sum of any amounts expended by the Servicer in
connection with such liquidation and any amounts required by law to be remitted
to the Obligor on such Liquidated Receivable.

 

“Liquidity
Receivables Purchase Agreements” means, collectively,
the CNHCA Liquidity Receivables Purchase Agreement and the NH Liquidity
Receivables Purchase Agreement.

 

“London
Banking Day” means any day on which dealings in
deposits in U.S. Dollars are transacted in the London interbank market.

“Maximum
Negative Carry Amount”

 

(a)           the weighted average of the Interest
Rate on each class of  Notes (assuming
LIBOR is equal to the Stated Fixed Interest Rate Swap Rate for the class of
Floating Rates Notes) minus      %; multiplied by

 

(b)           the amount on deposit in the
Pre-Funding Account; multiplied by

 

(c)           the fraction of a year represented by
the number of days until the expected end of the Funding Period, calculated on
the basis of a 360-day year of twelve 30-day months.

 

“Measured
Losses” means, for any Collection Period, the sum of
(a) for each Receivable that became a Liquidated Receivable during such
Collection Period, the difference between (i) the Principal Balance plus
accrued and unpaid interest on such Receivable less the Write Down Amount for
such Receivable (if such receivable was a 180-Day Receivable or Repossessed
Receivable at the time of liquidation), if any, and (ii) the Liquidation
Proceeds received with respect to such Receivable during such Collection
Period, (b) with respect to any Receivable that became a 180-Day Receivable or
a Repossessed Receivable during such Collection Period, the Write Down Amount,
if any, for that Receivable and (c) with respect to each other 180-Day
Receivable or Repossessed Receivable, the amount of the adjustment, if any, to
the Write Down Amount for such Receivable for the related Collection Period.

 

“Moody’s” means
Moody’s Investors Service, Inc., or its successor.

 

“Negative
Carry Account” means the account designated as such,
established and maintained pursuant to Section 5.1(a) of the Sale and Servicing
Agreement.

 

A-15

 

“Negative Carry Account Initial Deposit”
means $     .

 

“Negative
Carry Amount” means an amount for each Collection
Period calculated by the Servicer as the difference (if positive) between: (a)
the product of: (i) the sum of the Class Interest Amounts for each Class of
Notes multiplied by (ii) the Pre-Funded Percentage as of the immediately prior
Payment Date (or, in the case of the first Payment Date, the Closing Date)
minus (b) the Pre-Funding Account Investment Earnings.

 

“Net Swap
Payment” means the Class A-4a Net Swap Payment.

 

“Net Swap
Receipt” means the Class A-4a Net Swap Receipt.

 

“NH Credit”
means New Holland Credit Company, LLC, a Delaware limited liability company,
and its successors and assigns.

 

“NH Liquidity Receivables Purchase
Agreement” means the New Holland Credit Receivables Purchase
Agreement, dated as of [Month Day], 200X, between NH Credit and CNHCR.

 

“NH Owned Contracts” shall
mean the Contracts previously purchased from NH Credit by CNHCR pursuant to the
NH Liquidity Receivables Purchase Agreement and sold by CNHCR to the Issuer
pursuant to the Sale and Servicing Agreement.

 

“Note
Balance” means the aggregate Outstanding Amount of the
Notes from time to time.

 

“Note
Depository Agreement” means the agreement between the
Issuer and The Depository Trust Company, as the initial Clearing Agency, dated
as of the Closing Date.

 

“Note
Distribution Account” means the account designated as
such, established and maintained pursuant to Section 5.1(a) of the Sale and
Servicing Agreement.

 

“Note
Monthly Principal Distributable Amount” means, with
respect to any Payment Date, the amount necessary to be paid on the Notes to
reduce the Outstanding principal amount of the Notes to an amount equal to the
Asset Balance for that Payment Date; provided that
the Note Monthly Principal Distributable Amount shall not exceed the aggregate
Outstanding principal amount of the Notes; provided, further,
that on the Class Final Scheduled Maturity Date for each Class of Notes, the
Note Monthly Principal Distributable Amount will at least equal the amount
necessary to repay the Outstanding principal amount of that Class of Notes and
of any other Class of Notes payable prior to that Class of Notes. For purposes
of this definition only, the A-1 Notes, A-2 Notes, A-3 Notes and A-4 Notes
shall each be deemed to be a separate Class of Notes.

 

“Note Owner”
means, with respect to a Book-Entry Note, the Person who is the owner of
such Book-Entry Note, as reflected on the books of the Clearing Agency,
or on the books of a Person maintaining an account with the Clearing Agency
(directly as a Clearing Agency Participant or as an indirect participant, in
each case in accordance with the rules of the Clearing Agency).

 

A-16

 

“Note Pool
Factor” means, as of the close of business on any
Payment Date with respect to any Class of Notes, the Outstanding Amount of that
Class of Notes divided by the original Outstanding Amount of that Class of
Notes (carried out to the seventh decimal place). The Note Pool Factor for each
Class will be           - as
of the Closing Date, and, thereafter, will decline to reflect reductions in the
Outstanding Amount of the Notes.

 

“Note
Register” and “Note Registrar”
have the respective meanings specified in Section 2.4 of the Indenture.

 

“Noteholders”
means the Class A Noteholders, the Class B Noteholders, and the Class C
Noteholders.

 

“Noteholders’
Distributable Amount” means, with respect to any
Payment Date, the sum of: (a) the Class Interest Amount for each Class of Notes
and (b) the Note Monthly Principal Distributable Amount.

 

“Notes” means
the Class A Notes, the Class B Notes and the Class C Notes.

 

“Obligor”
on a Receivable means the purchaser or co-purchasers or lessee or co-lessees of
the Financed Equipment and any other Person who owes payments under the
Receivable (including, with respect to the Termination Value, the related
Dealer).

 

“Officer’s
Certificate” means a certificate signed by one of the
following:  the Chairman of the Board,
the President, the Vice Chairman of the Board, an Executive Vice President, any
Vice President, a Treasurer, Assistant Treasurer, Secretary or Assistant
Secretary of the Seller or the Servicer, as appropriate.

 

“One-Month
LIBOR” means, for each Interest Period, the rate for deposits in U.S. Dollars for a
period of one month corresponding to such Interest
Period which appears on the Telerate Page 3750 as of 11:00 a.m.,
London time, on the related LIBOR
Determination Date.  If such
rate does not appear on the Telerate Page 3750, the rate for that Interest
Period will be determined as if the parties had specified “USD-LIBOR Reference
Banks Rate” as the applicable rate.

 

“Opinion of
Counsel” means a written opinion of counsel (who may,
except as otherwise expressly provided in this Agreement, be an employee of or
counsel to the Seller or the Servicer), which counsel and opinion shall be
reasonably acceptable to the Indenture Trustee, the Trustee, each Counterparty
or the Rating Agencies, as applicable.

 

“Originators”
means CNHCA and NH Credit.

 

“Outstanding”
means, as of the date of determination, all Notes theretofore authenticated and
delivered under the Indenture except:

(i)            Notes theretofore canceled by the
Note Registrar or delivered to the Note Registrar for cancellation;

 

A-17

 

(ii)           Notes or portions thereof the payment
for which money in the necessary amount has been theretofore deposited with the
Indenture Trustee or any Paying Agent in trust for the Holders of such Notes
(provided, however, that if such Notes are to be redeemed, notice of such
redemption has been duly given pursuant to the Indenture); and

 

(iii)          Notes in exchange for or in lieu of
other Notes that have been authenticated and delivered pursuant to the
Indenture unless proof satisfactory to the Indenture Trustee is presented that
any such Notes are held by a bona fide purchaser;

 

provided,
that in determining whether the Holders of the requisite Outstanding Amount of
the Notes have given any request, demand, authorization, direction, notice,
consent or waiver hereunder or under any Basic Document, Notes owned by the
Issuer, any other obligor upon the Notes, the Seller or any Affiliate of any of
the foregoing Persons shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Indenture Trustee shall be protected in
relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Notes that a Responsible Officer of the Indenture
Trustee actually knows to be so owned shall be so disregarded. Notes so owned
that have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Indenture Trustee the pledgee’s
right so to act with respect to such Notes and that the pledgee is not the
Issuer, any other obligor upon the Notes, the Seller or any Affiliate of any of
the foregoing Persons.

 

“Outstanding
Amount” means the aggregate principal amount of all
Notes, or Class of Notes, as applicable, Outstanding at the date of
determination.

 

“Paying
Agent” means (a) with respect to the Notes, the
Indenture Trustee or any other Person that meets the eligibility standards for
the Indenture Trustee specified in Section 6.11 of the Indenture and is
authorized by the Issuer to make the payments to and distributions from the
Collection Account and the Note Distribution Account, including payment of
principal of or interest on the Notes on behalf of the Issuer, and (b) with
respect to the Certificates, any paying agent or co-paying agent appointed
pursuant to Section 3.9 of the Trust Agreement, and shall initially be The Bank
of New York.

 

“Payment
Date” means, with respect to each Collection Period,
the fifteenth day of the calendar month following the end of that Collection
Period, or, if such day is not a Business Day, the next Business Day,
commencing on [Month Day], 200X; provided that
if any A-1 Notes remain Outstanding after giving effect to distributions on the
[Month] 200X Payment Date, [Month Day], 200X shall constitute a Payment Date
solely with respect to the A-1 Notes.

 

“Person”
means any individual, corporation, limited liability company, estate,
partnership, joint venture, association, joint stock company, trust (including
any beneficiary thereof), unincorporated organization or government or any
agency or political subdivision thereof.

 

“Pool
Balance” means, at any time, the sum of the aggregate
Contract Values of the Receivables as of the beginning of a Collection Period
(after giving effect to all payments received from Obligors and Purchase
Amounts to be remitted by the Servicer or the Seller, as the case may be, with
respect to the preceding Collection Period and all Realized Losses on

 

A-18

 

Receivables
liquidated during such preceding Collection Period) less the aggregate Write
Down Amount as of the last day of the preceding Collection Period.

 

“Precomputed
Receivable” means any Receivable under which the
portion of a payment allocable to earned interest (which may be referred to in
the related Contract as an add-on finance charge) and the portion allocable to
the Amount Financed are determined according to the sum of periodic balances,
the sum of monthly payments or any equivalent method or are monthly actuarial
receivables.

 

“Predecessor
Note” means, with respect to any particular Note,
every previous Note evidencing all or a portion of the same debt as that
evidenced by such particular Note; and, for the purpose of this definition, any
Note authenticated and delivered under Section 2.5 of the Indenture in lieu of
a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the
same debt as the mutilated, lost, destroyed or stolen Note.

 

“Pre-Funded
Amount” means, with respect to any date, the amount on
deposit in the Pre-Funding Account on such date.

 

“Pre-Funded
Percentage” means, for each Collection Period, the
quotient (expressed as a percentage) of: (i) the Pre-Funded Amount divided by
(ii) the sum of the Pool Balance and the Pre-Funded Amount, after taking into
account all transfers of Subsequent Receivables during such Collection Period.

 

“Pre-Funding
Account” means the account designated as such,
established and maintained pursuant to Section 5.1(a) of the Sale and Servicing
Agreement.

 

“Pre-Funding Account Initial Deposit” means $          .

 

“Pre-Funding
Account Investment Earnings” means, with respect to
any Payment Date, the interest and other investment earnings (net of losses and
investment expenses) on amounts on deposit in the Pre-Funding Account to be
deposited into the Collection Account on the related Transfer Date pursuant to
Section 5.1(b) of the Sale and Servicing Agreement.

 

“Principal
Balance” of a Receivable, as of the close of business
on the last day of a Collection Period, means the Amount Financed minus the sum
of: (i) that portion of all Scheduled Payments due on or prior to such day
allocable to principal using (x) in the case of a Precomputed Receivable, the
actuarial or constant yield method and (y) in the case of a Simple Interest
Receivable, the simple interest method, (ii) any refunded portion of insurance
premiums included in the Amount Financed, (iii) any payment of the Purchase
Amount with respect to the Receivable allocable to principal and (iv) any
prepayment in full or any partial prepayments applied to reduce the Principal
Balance of the Receivable.

 

“Principal
Supplement Account” means the account designated as
such, established and maintained pursuant to Section 5.1(a) of the Sale and
Servicing Agreement.

 

“Principal
Supplement Account Deposit” means, with respect to
each Subsequent Transfer Date, an amount equal to the Required Principal
Supplement Account Balance

 

A-19

 

applicable to
such Subsequent Transfer Date minus any amount then on deposit in the Principal
Supplement Account.

 

“Proceeding”
means any suit in equity, action at law or other judicial or administrative
proceeding.

 

“Prospectus”
means the Prospectus dated [Month Day] 200X and the Prospectus Supplement dated
[Month Day] 200X, relating to the Notes.

 

“Purchase
Amount” means, as of the close of business on the last
day of a Collection Period, an amount equal to the Contract Value of the
applicable Contract, as of the first day of the immediately following
Collection Period (or, with respect to any applicable Contract that is a
Liquidated Receivable, as of the day immediately prior to such Contract
becoming a Liquidated Receivable less any Liquidation Proceeds actually
received by the Issuer) plus interest accrued and unpaid thereon as of such
last day at a rate per annum equal to: (a) in the case of any Contract
transferred on the Closing Date, the Initial Cutoff Date APR and (b) in the
case of any Contract transferred or a Subsequent Transfer Date, the applicable
Subsequent Cutoff Date APR.

 

“Purchased
Receivable” means a Receivable purchased as of the
close of business on the last day of a Collection Period by CNHCA pursuant to
Section 4.6 of the Sale and Servicing Agreement or by the Seller pursuant to
Section 3.2 of the Sale and Servicing Agreement, or as of the first day of a
Collection Period by the CNHCA pursuant to Section 9.1(a) of the Sale and
Servicing Agreement.

 

“Rating
Agency” means each of Fitch, Moody’s, Standard &
Poor’s and Dominion.

 

“Rating
Agency Condition” means, with respect to any action,
that each Rating Agency shall have been given 10 days’ prior notice thereof and
that each of the Rating Agencies shall have notified the Seller, the Servicer,
the Trustee and the Indenture Trustee in writing that such action will not
result in a reduction or withdrawal of the then current rating of any Class of
the Notes.

 

“Realized
Losses” means, with respect to any Liquidated
Receivable, the excess of the Principal Balance of such Liquidated Receivable plus accrued but unpaid interest thereon over the amount of
any related Liquidation Proceeds.

 

“Receivable”
means, collectively, any Contract listed on the Assignment and each Subsequent
Transfer Assignment.

 

“Receivable
Files” means the documents specified in Section 3.3 of
the Sale and Servicing Agreement.

 

“Record
Date” means, with respect to a Payment Date or
Redemption Date, the close of business on the fourteenth day of the calendar
month in which such Payment Date or Redemption Date occurs, or, if Definitive
Notes are issued, the close of business on the last day of the calendar month preceding
the month of such Payment Date, whether or not such day is a Business Day, or
if Definitive Notes were not outstanding on such date, the date of issuance of

 

A-20

 

the Definitive
Note, and with respect to the A-1 Note Final Scheduled Maturity Date, [Month
Day], 200X.

 

“Recoveries”
means, with respect to any Liquidated Receivable, monies collected in respect
thereof, from whatever source (other than from the sale or other disposition of
the Financed Equipment), after such Receivable became a Liquidated Receivable.

 

“Redemption
Date” means the Payment Date specified by the Servicer
or the Issuer pursuant to Section 10.1(a) of the Indenture.

 

“Redemption
Price” means the unpaid principal amount of the Notes
redeemed, plus accrued and unpaid interest thereon at the applicable interest
rate to but excluding the Redemption Date.

 

“Registered
Holder” means the Person in whose name a Note is
registered on the Note Register on the applicable Record Date.

 

“Remaining
Pre-Funded Amount” has the meaning assigned thereto in
Section 5.8(b) of the Sale and Servicing Agreement.

 

“Repossessed
Receivable” with respect to any calendar month will be
any Receivable as to which the Financed Equipment securing the defaulted Receivable
has been repossessed by the last day of such calendar month and which has not
become a Liquidated Receivable.

 

“Required
Negative Carry Account Balance” means, as of the
beginning of each Collection Period, an amount equal to the lesser of: (a) the Negative
Carry Account Initial Deposit minus all previous withdrawals from the Negative
Carry Account and (b) the Maximum Negative Carry Amount as of such day.

 

“Required
Principal Supplement Account Balance” means, with
respect to each Subsequent Cutoff Date, the excess, if any, of (a) an amount
equal to the difference (if positive) between (x) the Contract Value of the
Receivables and (y) the aggregate of the contractual payoff amounts for
each Receivable (as specified by the Servicer for each Receivable in the
applicable Schedule of Receivables), in each case, as of the end of the prior
Collection Period (or the applicable Subsequent Transfer Cutoff Date for
Subsequent Receivables being transferred on that Subsequent Transfer Date),
over (b) the Expected Excess Spread.

 

“Responsible
Officer” means, with respect to the Indenture Trustee,
any officer within the Corporate Trust Office of the Indenture Trustee,
including any Vice President, Assistant Vice President, Secretary or Assistant
Secretary, or any other officer of the Indenture Trustee customarily performing
functions similar to those performed by any of the above designated officers
and 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.

 

“Retail
Installment Contract” means an equipment retail
installment contract secured by Financed Equipment.

 

A-21

 

“Sale and
Servicing Agreement” means the Sale and Servicing
Agreement, dated as of [Month Day], 200X among the Issuer, the Seller and the
Servicer.

 

“Sale
Proceeds” is defined in Section 9.1(b) of the Sale and
Servicing Agreement.

 

“Schedule
of CNHCA Receivables” means, collectively, the listing
of the Receivables attached to the CNHCA Assignment and the listings of CNHCA
Receivables attached to each CNHCA Subsequent Transfer Assignment.

 

“Schedule
of Receivables” means, collectively, the listings of
the Receivables attached to the CNHCA Assignment and the Assignment, and the
listing of Receivables attached to each CNHCA Subsequent Transfer Assignment
and Subsequent Transfer Assignment.

 

“Scheduled
Payment” on a Receivable means that portion of the
payment required to be made by the Obligor during any Collection Period
sufficient to amortize the Principal Balance under (x) in the case of a
Precomputed Receivable, the actuarial method or (y) in the case of a Simple
Interest Receivable, the simple interest method, in each case, over the term of
the Receivable and to provide interest at the APR; provided that Termination
Values shall also constitute Scheduled Payments.

 

“Secretary
of State” means the Secretary of State of the State of
Delaware.

 

“Securities
Account” has the meaning assigned thereto in Section
8-501(a) of the UCC.

 

“Securities
Entitlement” has the meaning assigned thereto in
Section 8-102(a)(17) of the UCC.

 

“Securities
Intermediary” is defined in Section 8-102(a)(14) of
the UCC.

 

“Seller”
means CNHCR.

 

“Servicer”
means NH Credit, as the Servicer of the Receivables, and any successor to NH
Credit (in the same capacity) pursuant to Section 7.3 or 8.2 of the Sale and
Servicing Agreement.

 

“Servicer
Default” means an event specified in Section 8.1 of
the Sale and Servicing Agreement.

 

“Servicer’s
Certificate” means an Officer’s Certificate of the
Servicer delivered pursuant to Section 4.8 of the Sale and Servicing Agreement,
substantially in the form of Exhibit C thereto.

 

“Servicing
Fee” means the fee payable to the Servicer for services
rendered during the respective Collection Period, determined pursuant to
Section 4.7 of the Sale and Servicing Agreement.

 

“Simple
Interest Receivable” means any Receivable under which
the portion of a payment allocable to interest and the portion allocable to
principal is determined by allocating a

 

A-22

 

fixed level
payment between principal and interest, such that such payment is allocated
first to the accrued and unpaid interest at the Annual Percentage Rate for such
Receivable on the unpaid principal balance and the remainder of such payment is
allocable to principal.

 

“Specified Discount Factor” equals          %.

 

“Specified
Spread Account Balance” means, with respect to any
Payment Date, the lesser of (a) the greater of (i)          %
of the sum of (A) the Pool Balance as of the Initial Cutoff Date plus (B) the
aggregate Contract Value of all Subsequent Receivables sold to the trust as of
their respective cutoff dates and (ii)          %
of the Pool Balance as of the beginning of the current calendar month, and (b)
the outstanding principal amount of the Notes. 
However, if the Specified Spread Account Reduction Trigger is met on the
Payment Date in [Month] 200X, [Month] 200X or [Month] 200X, the percentage in
clause (a)(i) will be reduced to          %
and the percentage in clause (a)(ii) will be reduced to          %,
each on such Payment Date and for each Payment Date thereafter.  The Specified Spread Account Balance may be
reduced or modified without the consent of the Holders of the Notes if the
Rating Agency Condition is satisfied with respect to such reduction or
modification.

 

“Specified
Spread Account Reduction Trigger”  for the Payment Date in [Month] 200X, [Month]
200X or [Month] 200X will be met if the Average Delinquency Ratio Test and the
Cumulative Net Loss Ratio Test for such Payment Date are met.

 

“Spread
Account” means the account designated as such,
established and maintained pursuant to Section 5.1(a) of the Sale and Servicing
Agreement.

 

“Spread
Account Initial Deposit” means, initially, $         
and, with respect to each Subsequent Transfer Date, cash or Eligible
Investments having a value approximately equal to          %
of the aggregate Contract Value of the Subsequent Receivables conveyed to the
Issuer on such Subsequent Transfer Date.

 

“Standard
& Poor’s” means Standard & Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc., or its successor.

 

“State”
means any one of the 50 states of the United States of America or the District
of Columbia.

 

“Stated Fixed Interest Rate Swap Rate” means with respect to
the Class A-4a Notes, the fixed interest rate of          %.

 

“Statistical
Contract Value” of a Receivable means either (i) the
sum of the present value of the scheduled and unpaid payments on the
Receivable, discounted monthly at an annual rate equal to its APR (instead of
the weighted average APR of the Initial Receivables), plus any amount of past
due payments, or (ii) the current balance of the Receivable on the Servicer’s
records, depending upon the type of Receivable.

 

“Subsequent Assets” is
defined in Section 2.2 of the Sale and Servicing Agreement.

 

A-23

 

“Subsequent
CNHCA Assets” is defined in Section 2.2 of the CNHCA
Purchase Agreement.

 

“Subsequent
CNHCA Purchase Price” is defined in Section 2.5(b) of
the CNHCA Purchase Agreement.

 

“Subsequent
CNCHA Receivables” means the Receivables transferred
to CNHCR pursuant to Section 2.2 of the CNHCA Purchase Agreement, which shall
be listed on Schedule A to the related CNHCA Subsequent Transfer Assignment.

 

“Subsequent
Cutoff Date” means, with respect to any Subsequent
Receivables, the close of business on the last day of the calendar month
preceding the related Subsequent Transfer Date.

 

“Subsequent
Cutoff Date APR” means, with respect to any Subsequent
Cutoff Date, the Specified Discount Factor.

 

“Subsequent
Receivables” means the Receivables transferred to the
Issuer pursuant to Section 2.2 of the Sale and Servicing Agreement, which shall
be listed on Schedule A to the related Subsequent Transfer Assignment.

 

“Subsequent
Transfer Assignment” has the meaning assigned thereto
in Section 2.2(b)(i) of the Sale and Servicing Agreement.

 

“Subsequent
Transfer Date” means  with respect to a
Subsequent Receivable, any Business Day during the Funding Period on which
Subsequent Receivables are to be transferred to the Issuer and a Subsequent
Transfer Assignment is executed and delivered to the Trustee and the Indenture Trustee
pursuant to Section 2.2 of the Sale and Servicing Agreement.

 

“Successor
Servicer” is defined in Section 3.7(e) of the
Indenture.

 

“Telerate
Page 3750” means the display page currently so
designated on the Bridge’s Telerate Service (or such other page as may replace
that page on that service for the purpose of displaying comparable rates or
prices.

 

“TIA”
means the Trust Indenture Act.

 

“Total
Distribution Amount” means, with respect to any
Payment Date, the aggregate amount of collections on or with respect to the
Receivables (including collections received after the end of the preceding
calendar month on any Subsequent Receivables added to the Trust after the end
of that preceding calendar month and on or before that Payment Date) with
respect to the related Collection Period plus the Negative Carry Amount for
such Collection Period.  Collections on
or with respect to the Receivables include all payments made by or on behalf of
the Obligors (including any late fees, prepayment charges, extension fees and other
administrative fees or similar charges allowed by applicable law with respect
to the Receivables), any proceeds from insurance policies covering the Financed
Equipment or related Obligor, Liquidation Proceeds, the Purchase Amount of each
Receivable that became a Purchased Receivable in respect of the related
Collection Period (to the extent deposited into the Collection 

 

A-24

 

Account),
Investment Earnings for such Payment Date, payments made by a Dealer pursuant
to its obligation (if any) to pay the Termination Value pursuant to the related
Lease and pursuant to the related Dealer Agreement with respect to such
Receivable (other than amounts paid from Dealer reserve accounts maintained
with CNHCA), Net Swap Receipts and the Remaining Pre-Funded Amount, on the
Payment Date specified in Section 5.8(b) of the Sale and Servicing Agreement;
provided, however, that the Total Distribution Amount shall not include: (i)
all payments or proceeds (including Liquidation Proceeds) of any Receivables
the Purchase Amount of which has been included in the Total Distribution Amount
in a prior Collection Period, (ii) any Recoveries or (iii) amounts released
from the Pre-Funding Account.

 

“Transfer
Date” means the Business Day preceding the fifteenth
day of each calendar month.

 

“Treasury
Regulations” means regulations, including proposed or
temporary regulations, promulgated under the Code. References to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

 

“True Lease
Equipment” means the Financed Equipment subject to
an  Either/or Lease that is properly
characterized as a true lease, rather than a lease intended as security, within
the meaning of Section 1-201(37) of the UCC.

 

“Trust”
means the Issuer.

 

“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), and all proceeds of the foregoing.

 

“Trust
Accounts” has the meaning assigned thereto in Section
5.1(b) of the Sale and Servicing Agreement.

 

“Trust
Agreement” means the Trust Agreement dated as of
[Month Day], 200X between the Seller and the Trustee, as the same may be
amended and supplemented from time to time.

 

“Trust
Certificate” means a certificate evidencing the
beneficial interest of a Certificateholder in the Trust, substantially in the
form of Exhibit A to the
Trust Agreement.

 

“Trust
Estate” means (a) with respect to the Indenture, all
the money, instruments, rights and other property that are subject or intended
to be subject to the Lien and security interest of the Indenture for the
benefit of the Noteholders (including all property and interests Granted to the
Indenture Trustee), including all proceeds thereof, and (b) with respect to the
Trust Agreement, all right, title and interest of the Trust in and to the property
and rights assigned to the Trust pursuant to Article II (other than Section
2.1(B)) of the Sale and Servicing Agreement, all funds on deposit from time to
time in the Trust Accounts and the Certificate Distribution Account and all
other property of the Trust from time to time, including any rights of the
Trustee and the Trust pursuant to the Sale and Servicing Agreement and the
Administration Agreement.

 

A-25

 

“Trust
Indenture Act” means the Trust Indenture Act of 1939,
as in force on the date of the Indenture unless otherwise specifically
provided.

 

“Trust
Officer” means, in the case of the Indenture Trustee,
any officer within the Corporate Trust Office of the Indenture Trustee,
including any Vice President, Assistant Vice President, Secretary, Assistant
Secretary or any other officer of the Indenture Trustee customarily performing
functions similar to those performed by any of the above designated officers
and 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 Trustee, any officer in the
Corporate Trustee Administration Department of the Trustee with direct responsibility
for the administration of the Trust Agreement and the Basic Documents on behalf
of the Trustee.

 

“Trust
Statute” means Chapter 38 of Title 12 of the Delaware
Code, 12 Del. Code § 3801 et seq., as the same may be amended from time to
time.

 

“Trustee”
means The Bank of New York, a New York banking corporation, not in its
individual capacity but solely as trustee under the Trust Agreement, and any
successor Trustee thereunder.

 

“Uncertificated
Security” has the meaning assigned thereto in Section
8-102(a)(18) of the UCC.

 

“UCC”
means, unless the context otherwise requires, the Uniform Commercial Code as in
effect in the relevant jurisdiction, as amended from time to time.

 

“Underwriting
Agreement” means the Underwriting Agreement dated
[Month Day] 200X among Credit Suisse First Boston LLC and BNP Paribas
Securities Corp. as representatives of the several underwriters named therein,
CNHCA and CNHCR.

 

“USD-LIBOR
Reference Banks Rate” means the Class A-4a USD-LIBOR
Reference Banks Rate.

 

“Write Down
Amount” for any Collection Period for any 180-Day
Receivable or Repossessed Receivable will be the excess of (a) the Principal
Balance plus accrued and unpaid interest of such Receivable as of the last day
of the Collection Period during which the Receivable became a 180-Day
Receivable or Repossessed Receivable, as applicable, over (b) the estimated
realizable value of the Receivable, as determined by the Servicer in accordance
with its then-current servicing procedures for the related Collection Period, which
amount may be adjusted to zero by the Servicer in accordance with its normal
servicing procedures if the Receivable has ceased to be a 180-Day Receivable as
provided in the definition of “180-Day Receivable.”

 

A-26Exhibit 4.1

 

EXECUTION
COPY

 

 

DRS TECHNOLOGIES,
INC.

 

AND EACH OF THE
GUARANTORS PARTY HERETO

 

65/8%
SENIOR NOTES DUE 2016

 

 

FIRST SUPPLEMENTAL
INDENTURE

 

Dated as of January 31,
2006

 

 

THE BANK OF NEW
YORK

 

Trustee

 

 

 

 

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture Section

  	
   

  
	
  310(a)(1)

  	
   

  	
  7.10

  	
   

  
	
  (a)(2)

  	
   

  	
  7.10

  	
   

  
	
  (a)(3)

  	
   

  	
  N.A.

  	
   

  
	
  (a)(4)

  	
   

  	
  N.A.

  	
   

  
	
  (a)(5)

  	
   

  	
  7.10

  	
   

  
	
  (b)

  	
   

  	
  7.10

  	
   

  
	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  311(a)

  	
   

  	
  7.11

  	
   

  
	
  (b)

  	
   

  	
  7.11

  	
   

  
	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  312(a)

  	
   

  	
  2.05

  	
   

  
	
  (b)

  	
   

  	
  13.03

  	
   

  
	
  (c)

  	
   

  	
  13.03

  	
   

  
	
  313(a)

  	
   

  	
  7.06

  	
   

  
	
  (b)(2)

  	
   

  	
  7.06; 7.07

  	
   

  
	
  (c)

  	
   

  	
  7.06

  	
   

  
	
  (d)

  	
   

  	
  7.06

  	
   

  
	
  314(a)

  	
   

  	
  4.03; 13.02; 13.05

  	
   

  
	
  (c)(1)

  	
   

  	
  13.04

  	
   

  
	
  (c)(2)

  	
   

  	
  13.04

  	
   

  
	
  (c)(3)

  	
   

  	
  N.A.

  	
   

  
	
  (e)

  	
   

  	
  13.05

  	
   

  
	
  (f)

  	
   

  	
  N.A.

  	
   

  
	
  315(a)

  	
   

  	
  7.01

  	
   

  
	
  (b)

  	
   

  	
  7.05,13.02

  	
   

  
	
  (c)

  	
   

  	
  7.01

  	
   

  
	
  (d)

  	
   

  	
  7.01

  	
   

  
	
  (e)

  	
   

  	
  6.11

  	
   

  
	
  316(a) (last
  sentence)

  	
   

  	
  2.09

  	
   

  
	
  (a)(1)(A)

  	
   

  	
  6.05

  	
   

  
	
  (a)(1)(B)

  	
   

  	
  6.04

  	
   

  
	
  (a)(2)

  	
   

  	
  N.A.

  	
   

  
	
  (b)

  	
   

  	
  6.07

  	
   

  
	
  (c)

  	
   

  	
  2.12

  	
   

  
	
  317(a)(1)

  	
   

  	
  6.08

  	
   

  
	
  (a)(2)

  	
   

  	
  6.09

  	
   

  
	
  (b)

  	
   

  	
  2.04

  	
   

  
	
  318(a)

  	
   

  	
  N.A.

  	
   

  
	
  (b)

  	
   

  	
  N.A.

  	
   

  
	
  (c)

  	
   

  	
  13.01

  	
   

  

 

N.A.
means not applicable.

*This
Cross-Reference Table is not part of the Indenture.

 

 

	
   

  	
  TABLE OF CONTENTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  	
  DEFINITIONS AND
  INCORPORATION BY REFERENCE

  	
  2

  
	
   

  	
   

  
	
   

  	
  Section 1.01

  	
  Definitions

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.02

  	
  Other Definitions

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.03

  	
  Incorporation by
  Reference of Trust Indenture Act

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.04

  	
  Rules of
  Construction

  	
  25

  
	
   

  	
   

  
	
  ARTICLE 2

  	
  THE NOTES

  	
  26

  
	
   

  	
   

  
	
   

  	
  Section 2.01

  	
  Form and Dating

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.02

  	
  Execution and
  Authentication

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.03

  	
  Registrar and Paying
  Agent

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.04

  	
  Paying Agent to Hold
  Money in Trust

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.05

  	
  Holder Lists

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.06

  	
  Transfer and Exchange

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.07

  	
  Replacement Notes

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.08

  	
  Outstanding Notes

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.09

  	
  Treasury Notes

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.10

  	
  Temporary Notes

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.11

  	
  Cancellation

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.12

  	
  Defaulted Interest

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.13

  	
  CUSIP Numbers

  	
  34

  
	
   

  	
   

  
	
  ARTICLE 3

  	
  REDEMPTION AND
  PREPAYMENT

  	
  34

  
	
   

  	
   

  
	
   

  	
  Section 3.01

  	
  Notices to Trustee

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.02

  	
  Selection of Notes to
  Be Redeemed or Purchased

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.03

  	
  Notice of Redemption

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.04

  	
  Effect of Notice of
  Redemption

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.05

  	
  Deposit of Redemption
  or Purchase Price

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.06

  	
  Notes Redeemed or
  Purchased in Part

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.07

  	
  Optional Redemption

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.08

  	
  Mandatory Redemption

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.09

  	
  Offer to Purchase by
  Application of Excess Proceeds

  	
  38

  
	
   

  	
   

  
	
  ARTICLE 4

  	
  COVENANTS

  	
  40

  
									

 

i

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.01

  	
  Payment of Notes

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.02

  	
  Maintenance of Office
  or Agency

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.03

  	
  Reports

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.04

  	
  Compliance Certificate

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.05

  	
  Taxes

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.06

  	
  Stay, Extension and
  Usury Laws

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.07

  	
  Restricted Payments

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.08

  	
  Dividend and Other
  Payment Restrictions Affecting Subsidiaries

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.09

  	
  Incurrence of
  Indebtedness and Issuance of Preferred Stock

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.10

  	
  Asset Sales

  	
  51

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.11

  	
  Transactions with
  Affiliates

  	
  54

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.12

  	
  Liens

  	
  55

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.13

  	
  Business Activities

  	
  55

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.14

  	
  Corporate Existence

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.15

  	
  Offer to Repurchase
  Upon Change of Control

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.16

  	
  Intentionally Omitted

  	
  57

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.17

  	
  Limitation on Sale and
  Leaseback Transactions

  	
  57

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.18

  	
  Payments for Consent

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.19

  	
  Additional Subsidiary
  Guarantees

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.20

  	
  Designation of
  Restricted and Unrestricted Subsidiaries

  	
  58

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.21

  	
  Changes in Covenants
  when Notes Rated Investment Grade

  	
  59

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
  SUCCESSORS

  	
  59

  
	
   

  	
   

  
	
   

  	
  Section 5.01

  	
  Merger, Consolidation,
  or Sale of Assets

  	
  60

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.02

  	
  Successor Corporation
  Substituted

  	
  61

  
	
   

  	
   

  
	
  ARTICLE 6

  	
  DEFAULTS AND REMEDIES

  	
  61

  
	
   

  	
   

  
	
   

  	
  Section 6.01

  	
  Events of Default

  	
  61

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.02

  	
  Acceleration

  	
  63

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.03

  	
  Other Remedies

  	
  63

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.04

  	
  Waiver of Past Defaults

  	
  64

  
							

 

ii

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.05

  	
  Control by Majority

  	
  64

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.06

  	
  Limitation on Suits

  	
  64

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.07

  	
  Rights of Holders of
  Notes to Receive Payment

  	
  64

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.08

  	
  Collection Suit by
  Trustee

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.09

  	
  Trustee May File
  Proofs of Claim

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.10

  	
  Priorities

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.11

  	
  Undertaking for Costs

  	
  66

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
  TRUSTEE

  	
  66

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 7.01

  	
  Duties of Trustee

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.02

  	
  Rights of Trustee

  	
  67

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.03

  	
  Individual Rights of
  Trustee

  	
  68

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.04

  	
  Trustee’s Disclaimer

  	
  68

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.05

  	
  Notice of Defaults

  	
  68

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.06

  	
  Reports by Trustee to
  Holders of the Notes

  	
  68

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.07

  	
  Compensation and
  Indemnity

  	
  69

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.08

  	
  Replacement of Trustee

  	
  70

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.09

  	
  Successor Trustee by
  Merger, etc

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.10

  	
  Eligibility;
  Disqualification

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.11

  	
  Preferential Collection
  of Claims Against Company

  	
  71

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
  LEGAL DEFEASANCE AND
  COVENANT DEFEASANCE

  	
  71

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 8.01

  	
  Option to Effect Legal
  Defeasance or Covenant Defeasance

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.02

  	
  Legal Defeasance and
  Discharge

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.03

  	
  Covenant Defeasance

  	
  72

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.04

  	
  Conditions to Legal or
  Covenant Defeasance

  	
  72

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.05

  	
  Deposited Money and
  Government Securities to be Held in Trust; Other Miscellaneous Provisions

  	
  74

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.06

  	
  Repayment to Company

  	
  74

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.07

  	
  Reinstatement

  	
  74

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
  AMENDMENT, SUPPLEMENT
  AND WAIVER

  	
  75

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.01

  	
  Without Consent of
  Holders of Notes

  	
  75

  
						

 

iii

 

	
   

  	
  Section 9.02

  	
  With Consent of Holders
  of Notes

  	
  76

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.03

  	
  Compliance with Trust
  Indenture Act

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.04

  	
  Revocation and Effect
  of Consents

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.05

  	
  Notation on or Exchange
  of Notes

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.06

  	
  Trustee to Sign
  Amendments, etc

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
  INTENTIONALLY OMITTED

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
  SUBSIDIARY GUARANTEES

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.01

  	
  Guarantee

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.02

  	
  Intentionally Omitted

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.03

  	
  Limitation on Guarantor
  Liability

  	
  79

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.04

  	
  Execution and Delivery
  of Subsidiary Guarantee

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.05

  	
  Guarantors May Consolidate,
  etc., on Certain Terms

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.06

  	
  Releases

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
  SATISFACTION AND
  DISCHARGE

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.01

  	
  Satisfaction and
  Discharge

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.02

  	
  Application of Trust
  Money

  	
  83

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 13

  	
  MISCELLANEOUS

  	
  83

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.01

  	
  Trust Indenture Act
  Controls

  	
  83

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.02

  	
  Notices

  	
  83

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.03

  	
  Communication by
  Holders of Notes with Other Holders of Notes

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.04

  	
  Certificate and Opinion
  as to Conditions Precedent

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.05

  	
  Statements Required in
  Certificate or Opinion

  	
  85

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.06

  	
  Rules by Trustee
  and Agents

  	
  85

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.07

  	
  No Personal Liability
  of Directors, Officers, Employees and Stockholders

  	
  85

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.08

  	
  Governing Law

  	
  86

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.09

  	
  No Adverse
  Interpretation of Other Agreements

  	
  86

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.10

  	
  Successors

  	
  86

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.11

  	
  Severability

  	
  86

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.12

  	
  Counterpart Originals

  	
  86

  
							

 

iv

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.13

  	
  Table of Contents,
  Headings, etc

  	
  86

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.14

  	
  Supremacy

  	
  86

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 13.15

  	
  Force Majeure

  	
  86

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EXHIBITS

  	
   

  
	
  Exhibit A

  	
  FORM OF
  NOTE

  	
   

  
	
  Exhibit B

  	
  FORM OF
  SUBSIDIARY GUARANTEE

  	
   

  
	
  Exhibit C

  	
  FORM OF
  SUPPLEMENTAL INDENTURE

  	
   

  
					

 

v

 

FIRST SUPPLEMENTAL INDENTURE dated as of January 31,
2006 among DRS Technologies, Inc., a Delaware corporation (the “Company”),
the Guarantors (as defined herein) and The Bank of New York, a New York banking
corporation, as trustee (the “Trustee”).

 

WITNESSETH

 

WHEREAS, the Company and the Trustee have
entered into an Indenture for the issuance of senior debt securities dated as
of January 31, 2006 (the “Base Indenture” and, as amended and
supplemented by this Supplemental Indenture, the “Indenture”);

 

WHEREAS, Sections 301 and 901 of the Base
Indenture provide, among other things, that the Company and the Trustee may
enter into a supplemental indenture to the Base Indenture for, among other
things, the purpose of establishing the designation, form, terms and provisions
of Securities of any series (as defined in the Base Indenture);

 

WHEREAS, clause (5) of Section 901
of the Base Indenture provides that the Company and the Trustee may enter into
a supplemental indenture adding to, changing or eliminating any provision of
the Base Indenture with respect to one or more series of Securities (as defined
in the Base Indenture); provided, that any such change shall become
effective only when there is no such Security outstanding;

 

WHEREAS, at the time this Supplemental
Indenture is being executed and delivered there are no Securities outstanding;

 

WHEREAS, the Company desires to establish and
issue a new series of Securities, the Company’s 65/8%
Senior Notes due 2016 (the “ Notes”, which term shall include any
Additional Notes issued under this Supplemental Indenture), pursuant to the
Base Indenture, as modified by this Supplemental Indenture; and

 

WHEREAS, the Company desires to enter into a
supplemental indenture pursuant to Sections 301 and 901 of the Base Indenture
to supplement the Base Indenture to establish the form, terms and provisions of
the Notes and to make deletions, modifications and additions to the Base
Indenture pertaining to the Notes as contemplated by Sections 301 and 901 of
the Base Indenture;

 

NOW, THEREFORE, in consideration of the
foregoing, the parties hereto, for the benefit of each other and for the equal
and proportionate benefit of all Persons who hereafter become Holders (as
defined), hereby enter into this Supplemental Indenture which amends, modifies,
supplements and restates (as applicable) the Base Indenture with respect to
(and only with respect to) the Notes, as follows:

 

All section references refer to the
sections of the Supplemental Indenture unless otherwise indicated.

 

 

ARTICLE 1

 

DEFINITIONS AND INCORPORATION

BY REFERENCE

 

Section 1.01                                Definitions.  For the purposes of this series of Securities
(as defined in the Base Indenture), this Section 1.01 shall amend and
restate in its entirety Section 101 of the Base Indenture.

 

“2013 Senior Subordinated Notes” means
the $550 million aggregate principal amount of 67/8%
Senior Subordinated Notes previously issued by the Company.

 

 “Acquired
Debt” means, with respect to any specified Person:

 

(1)                                  Indebtedness
of any other Person existing at the time such other Person is merged with or
into or became a Subsidiary of such specified Person, whether or not such
Indebtedness is incurred in connection with, or in contemplation of, such other
Person merging with or into, or becoming a Restricted Subsidiary of, such
specified Person; and

 

(2)                                  Indebtedness
secured by a Lien encumbering any asset acquired by such specified Person.

 

“Additional Notes” means an unlimited
principal amount of additional Notes (other than the Initial Notes) issued
under this Indenture in accordance with Sections 2.02 and 4.09
hereof, as part of the same series as the Initial Notes.

 

“Affiliate” of any specified Person
means any other Person directly or indirectly controlling or controlled by or
under direct or indirect common control with such specified Person.  For purposes of this definition, “control,”
as used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through the ownership of voting securities, by
agreement or otherwise; provided that beneficial ownership of 10% or
more of the Voting Stock of a Person will be deemed to be control.  For purposes of this definition, the terms “controlling,”
“controlled by” and “under common control with” have correlative meanings.

 

“Agent” means any Registrar,
co-registrar, Paying Agent or additional paying agent.

 

“Applicable Procedures” means, with
respect to any transfer or exchange of or for beneficial interests in any
Global Note, the rules and procedures of the Depositary that apply to such
transfer or exchange.

 

“Asset Sale” means:

 

(1)                                  the
sale, lease, conveyance or other disposition of any assets or rights; provided
that the sale, conveyance or other disposition of all or substantially all of
the assets of the Company and its Restricted Subsidiaries taken as a whole will
be governed by Section 4.15 or 5.01 of this Indenture not by
Section 4.10 of this Indenture; and

 

2

 

(2)                                  the
issuance of Equity Interests in any of the Company’s Restricted Subsidiaries or
the sale of Equity Interests in any of its Subsidiaries.

 

Notwithstanding the preceding, none of the
following items will be deemed to be an Asset Sale:

 

(1)                                  any
single transaction or series of related transactions that involves assets
having a Fair Market Value of less than $10.0 million;

 

(2)                                  a
sale or transfer of assets between or among the Company and its Restricted
Subsidiaries;

 

(3)                                  an
issuance of Equity Interests by a Restricted Subsidiary of the Company to the
Company or to a Restricted Subsidiary of the Company;

 

(4)                                  the
sale or lease of products, services or accounts receivable in the ordinary
course of business and any sale or other disposition of damaged, worn-out or
obsolete assets;

 

(5)                                  the
sale or other disposition of cash or Cash Equivalents;

 

(6)                                  the
granting of Liens not otherwise prohibited by this Indenture;

 

(7)                                  surrender
or waiver of contract rights or the settlement, release or surrender of
contract, tort or other claims;

 

(8)                                  a
Restricted Payment that does not violate Section 4.07 of this
Indenture or a Permitted Investment; and

 

(9)                                  the
sale or discount without recourse of accounts receivable arising in the
ordinary course of business in connection with the compromise or collection
thereof.

 

“Attributable Debt” in respect of a
sale and leaseback transaction means, at the time of determination, the present
value of the obligation of the lessee for net rental payments during the
remaining term of the lease included in such sale and leaseback transaction
including any period for which such lease has been extended or may, at the
option of the lessor, be extended.  Such
present value shall be calculated using a discount rate equal to the rate of
interest implicit in such transaction, determined in accordance with GAAP; provided,
however, that if such sale and leaseback transaction results in a
Capital Lease Obligation, the amount of Indebtedness represented thereby will
be determined in accordance with the definition of “Capital Lease Obligation.”

 

“Bankruptcy Law” means Title 11, U.S.
Code or any similar federal or state law for the relief of debtors.

 

“Base Indenture” has the meaning set
forth in the preamble.

 

3

 

“Beneficial Owner” has the meaning
assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange
Act, except that in calculating the beneficial ownership of any particular “person”
(as that term is used in Section 13(d)(3) of the Exchange Act), such “person”
will be deemed to have beneficial ownership of all securities that such “person”
has the right to acquire by conversion or exercise of other securities, whether
such right is currently exercisable or is exercisable only after the passage of
time.  The terms “Beneficially Owns” and “Beneficially
Owned” have a corresponding meaning.

 

“Board of Directors” means:

 

(1)                                  with
respect to a corporation, the board of directors of the corporation or any
committee thereof duly authorized to act on behalf of such board;

 

(2)                                  with
respect to a partnership, the Board of Directors of the general partner of the
partnership;

 

(3)                                  with
respect to a limited liability company, the managing member or members or any
controlling committee of managing members thereof; and

 

(4)                                  with
respect to any other Person, the board or committee of such Person serving a
similar function.

 

 “Business
Day” means any day other than a Legal Holiday.

 

“Capital Lease Obligation” means, at
the time any determination is to be made, the amount of the liability in
respect of a capital lease that would at that time be required to be
capitalized on a balance sheet in accordance with GAAP, and the Stated Maturity
thereof shall be the date of the last payment of rent or any other amount due
under such lease prior to the first date upon which such lease may be prepaid
by the lessee without payment of a penalty.

 

“Capital Stock” means:

 

(1)                                  in
the case of a corporation, corporate stock or other equivalents (however
designated);

 

(2)                                  in
the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock;

 

(3)                                  in
the case of a partnership or limited liability company, partnership interests
(whether general or limited) or membership interests; and

 

(4)                                  any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person, but excluding from all of the foregoing any debt securities convertible
into Capital Stock (including the Convertible Notes), whether or not such debt
securities include any right of participation with Capital Stock.

 

4

 

“Cash Equivalents” means:

 

(1)                                  United
States dollars;

 

(2)                                  securities
issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality of the United States government (provided
that the full faith and credit of the United States is pledged in support of
those securities) having maturities of not more than one year from the date of
acquisition;

 

(3)                                  certificates
of deposit and eurodollar time deposits with maturities of one year or less
from the date of acquisition, bankers’ acceptances with maturities not
exceeding six months and overnight bank deposits, in each case, with any
domestic commercial bank having capital and surplus in excess of $500.0 million
and a Thomson Bank Watch Rating of “B” or better;

 

(4)                                  repurchase
obligations with a term of not more than one year for underlying securities of
the types described in clauses (2) and (3) above
entered into with any financial institution meeting the qualifications
specified in clause (3) above;

 

(5)                                  commercial
paper having one of the two highest ratings obtainable from Moody’s Investors
Service, Inc. or Standard & Poor’s Rating Services and in each
case maturing within one year after the date of acquisition;

 

(6)                                  marketable
direct obligations issued by the United States of America or any political
subdivision of any state or any public instrumentality thereof having one of
the two highest ratings obtainable from Moody’s Investors Service, Inc. or
Standard & Poor’s Rating Services and in each case maturing within one
year after the date of acquisition; and

 

(7)                                  money
market funds at least 95% of the assets of which constitute Cash Equivalents of
the kinds described in clauses (1) through (6) of this
definition.

 

“Certificated Note” means a
certificated Note registered in the name of the Holder thereof and issued in
accordance with Section 2.06 hereof, substantially in the form of Exhibit A
hereto.

 

“Change of Control” means the
occurrence of any of the following:

 

(1)                                  the
direct or indirect sale, transfer, conveyance or other disposition (other than
by way of merger or consolidation), in one or a series of related transactions,
of all or substantially all of the properties or assets of the Company and its
Subsidiaries taken as a whole to any “person” (as that term is used in Section 13(d) of
the Exchange Act);

 

(2)                                  the
adoption of a plan relating to the liquidation or dissolution of the Company;

 

(3)                                  the
consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any “person” (as defined above),

 

5

 

directly or indirectly, becomes the Beneficial Owner
of more than 50% of the Voting Stock of the Company, measured by voting power
rather than number of shares; or

 

(4)                                  the
Company consolidates with, or merges with or into, any Person, or any Person
consolidates with, or merges with or into, the Company, in any such event
pursuant to a transaction in which any of the outstanding Voting Stock of the
Company or such other Person is converted into or exchanged for cash,
securities or other property, other than any such transaction where the Voting
Stock of the Company outstanding immediately prior to such transaction is
converted into or exchanged for Voting Stock (other than Disqualified Stock) of
the surviving or transferee Person constituting a majority of the outstanding
shares of such Voting Stock of such surviving or transferee Person (immediately
after giving effect to such issuance).

 

“Company” means DRS Technologies, Inc.
and any and all successors thereto.

 

“Comparable Treasury Issue” means the
United States Treasury security selected by a Reference Treasury Dealer
appointed by the Company as having a maturity comparable to the remaining term
of the Notes (as if the final maturity of the Notes was February 1, 2011)
that would be utilized at the time of the selection and in accordance with
customary financial practice in pricing new issues of corporate debt securities
of comparable maturity to the remaining term of the relevant Notes (as if the
final maturity of the Notes was February 1, 2011).

 

“Comparable Treasury Price” means,
with respect to any redemption date, (1) the average of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) on the third Business Day preceding such
redemption date, as set forth in the daily statistical release (or any
successor release) published by the Federal Reserve Bank of New York and
designated “Composite 3:30 p.m. Quotations for U.S. Government Securities”
or (2) if such release (or any successor release) is not published or does
not contain such prices on such Business Day, (A) the average of the
Reference Treasury Dealer Quotations (as defined blow) for such redemption
date, after excluding the highest and lowest such Reference Treasury Dealer
Quotation or (B) if the Company obtains fewer than three such Reference
Treasury Dealer Quotations, the average of all such Reference Treasury Dealer
Quotations.

 

“Consolidated Cash Flow” means, with
respect to any specified Person for any period, the Consolidated Net Income of
such Person for such period plus, without duplication:

 

(1)                                  an
amount equal to any extraordinary loss plus any net loss realized by such
Person or any of its Restricted Subsidiaries in connection with an Asset Sale,
to the extent such losses were deducted in computing such Consolidated Net
Income; plus

 

(2)                                  provision
for taxes based on income or profits of such Person and its Restricted
Subsidiaries for such period, to the extent that such provision for taxes was
deducted in computing such Consolidated Net Income; plus

 

(3)                                  the
Fixed Charges of such Person and its Restricted Subsidiaries for such period,
to the extent that such Fixed Charges were deducted in computing such
Consolidated Net Income; plus

 

6

 

(4)                                  depreciation,
amortization (including amortization of intangibles but excluding amortization
of prepaid cash expenses that were paid in a prior period) and other non-cash
expenses (excluding any such non-cash expense to the extent that it represents
an accrual of or reserve for cash expenses in any future period or amortization
of a prepaid cash expense that was paid in a prior period) of such Person and
its Restricted Subsidiaries for such period to the extent that such
depreciation, amortization and other non-cash expenses were deducted in
computing such Consolidated Net Income; minus

 

(5)                                  non-cash
items increasing such Consolidated Net Income for such period, other than the
accrual of revenue in the ordinary course of business,

 

in each case,
on a consolidated basis and determined in accordance with GAAP.

 

Notwithstanding the preceding, the provision
for taxes based on the income or profits of, and the depreciation and
amortization and other non-cash expenses of, a Restricted Subsidiary of the
Company will be added to Consolidated Net Income to compute Consolidated Cash Flow
of the Company only to the extent that a corresponding amount would be
permitted at the date of determination to be dividended to the Company by such
Restricted Subsidiary without prior governmental approval (that has not been
obtained), and without direct or indirect restriction pursuant to the terms of
its charter and all agreements, instruments, judgments, decrees, orders,
statutes, rules and governmental regulations applicable to that Restricted
Subsidiary or its stockholders.

 

“Consolidated Net Income” means, with
respect to any specified Person for any period, the aggregate of the Net Income
of such Person and its Restricted Subsidiaries for such period, on a
consolidated basis, determined in accordance with GAAP; provided that:

 

(1)                                  the
Net Income (but not loss) of any Person that is not a Restricted Subsidiary or
that is accounted for by the equity method of accounting will be included only
to the extent of the amount of dividends or similar distributions paid in cash
to the specified Person or a Restricted Subsidiary of the Person;

 

(2)                                  the
Net Income of any Restricted Subsidiary will be excluded to the extent that the
declaration or payment of dividends or similar distributions by that Restricted
Subsidiary of that Net Income is not at the date of determination permitted
without any prior governmental approval (that has not been obtained) or,
directly or indirectly, by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to that Restricted Subsidiary or its
stockholders;

 

(3)                                  the
cumulative effect of a change in accounting principles will be excluded;

 

(4)                                  any
fees and expenses incurred during such period, or any amortization thereof for
such period, in connection with any acquisition, investment, asset disposition,
issuance or repayment of debt, issuance of equity securities, refinancing
transaction or amendment or other modification of any debt instrument and any
charges or non

 

7

 

recurring merger costs incurred during such period as
a result of any such transaction will be excluded;

 

(5)                                  non-cash
minority interest deductions will be excluded;

 

(6)                                  non-cash
charges related to the issuance of stock options will be excluded;

 

(7)                                  restricted
stock amortization expense will be excluded; and

 

(8)                                  notwithstanding
clause (1) above, the Net Income of any Unrestricted Subsidiary
will be excluded, whether or not distributed to the specified Person or one of
its Subsidiaries.

 

“Consolidated Tangible Assets” means,
with respect to the Company as of any date, the aggregate of the assets of the
Company and its Restricted Subsidiaries excluding goodwill, patents, trade
names, trade marks, copyrights, franchises, experimental expense, organization
expense and any other assets properly classified as intangible assets in
accordance with GAAP, as of such date on a consolidated basis, determined in
accordance with GAAP.  In the event that
information relating to Consolidated Tangible Assets is not available as of any
date, then the most recently available information will be utilized.

 

“Convertible Notes” means the $300.0
million aggregate principal amount of convertible notes due 2026 issued by the
Company as of the date hereof plus any Convertible Notes issued upon exercise
of the initial purchasers’ option to purchase up to an additional $45.0 million
aggregate principal amount of Convertible Notes.

 

“Corporate Trust Office of the Trustee”
will be at the address of the Trustee specified in Section 13.02
hereof or such other address as to which the Trustee may give notice to the
Company.

 

“Credit Agreement” means the Existing
Credit Agreement as such credit agreement will be amended and restated pursuant
to the senior credit agreement among the Company, the guarantors named therein,
the institutions who are or may become party thereto (the “Lenders”),
Bear Stearns Corporate Lending Inc., as Syndication Agent for the Lenders and
Wachovia Bank, National Association, as Administrative Agent for the Lenders,
upon the consummation of the ESSI Merger, providing for a revolving credit
facility, a letter of credit facility and a term loan facility.

 

“Credit Facilities” means, one or more
debt facilities (including, without limitation, the Credit Agreement) or
commercial paper facilities, in each case with banks or other institutional
lenders providing for debt securities, revolving credit loans, term loans,
receivables financing (including through the sale of receivables to such
lenders or to special purpose entities formed to borrow from such lenders
against such receivables), synthetic leases or letters of credit, in each case,
as amended, restated, modified, renewed, refunded, replaced or refinanced
(including by means of sales of debt securities to institutional investors) in
whole or in part from time to time.

 

“Custodian” means the Trustee, as
custodian with respect to the Notes in global form, or any successor entity
thereto.

 

8

 

“Default” means any event that is, or
with the passage of time or the giving of notice or both would be, an Event of
Default.

 

“Depositary” means, with respect to
the Notes issuable or issued in whole or in part in global form, the Person
specified in Section 2.03 hereof as the Depositary with respect to
the Notes, and any and all successors thereto appointed as depositary hereunder
and having become such pursuant to the applicable provision of this Indenture.

 

“Designated Non-cash Consideration”
means the fair market value of non-cash consideration received by the Company
or a Restricted Subsidiary in connection with an Asset Sale that is so
designated as Designated Non-cash Consideration pursuant to a resolution of the
Board of Directors of the Company, setting forth the basis of such valuation,
less the amount of cash or Cash Equivalents received in connection with a
subsequent sale of or collection on such Designated Non-cash Consideration.

 

 “Disqualified
Stock” means any Capital Stock that, by its terms (or by the terms of any
security into which it is convertible, or for which it is exchangeable, in each
case at the option of the holder of the Capital Stock), or upon the happening
of any event, matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or redeemable at the option of the holder of the
Capital Stock, in whole or in part, on or prior to the date that is 91 days
after the date on which the Notes mature. 
Notwithstanding the preceding sentence, any Capital Stock that would constitute
Disqualified Stock solely because the holders of the Capital Stock have the
right to require the Company to repurchase such Capital Stock upon the
occurrence of a change of control or an asset sale will not constitute
Disqualified Stock if the terms of such Capital Stock provide that the Company
may not repurchase or redeem any such Capital Stock pursuant to such provisions
unless such repurchase or redemption complies with Section 4.07
hereof.  The amount of Disqualified Stock
deemed to be outstanding at any time for purposes of this Indenture will be the
maximum amount that the Company and its Restricted Subsidiaries may become
obligated to pay upon the maturity of, or pursuant to any mandatory redemption
provisions of, such Disqualified Stock, exclusive of accrued dividends.

 

“Domestic Subsidiary” means any
Restricted Subsidiary of the Company that was formed under the laws of the
United States or any state of the United States or the District of Columbia or
that guarantees or otherwise provides direct credit support for any
Indebtedness of the Company.  The pledge
of Capital Stock of a Restricted Subsidiary of the Company will not be
considered to be a provision of direct credit support for Indebtedness of the
Company by such Restricted Subsidiary. 
Notwithstanding the foregoing, Laurel Technologies Partnership (d/b/a
DRS Laurel Technologies), Canopy Technologies LLC and MSSC Company LP and their
respective subsidiaries will not be Domestic Subsidiaries for so long as such
entities are not directly or indirectly wholly-owned by the Company, provided
that should Laurel Technologies Partnership (d/b/a DRS Laurel Technologies),
Canopy Technologies LLC or MSSC Company LP and their respective subsidiaries be
directly or indirectly wholly-owned by the Company at any point after the date
of this Indenture, they and their respective subsidiaries will become
Subsidiary Guarantors in compliance with Section 4.19 hereof.

 

9

 

“Equity Interests” means Capital Stock
and all warrants, options or other rights to acquire Capital Stock (but
excluding any debt security that is convertible into, or exchangeable for,
Capital Stock).

 

“Equity Offering” means any public or
private issuance or sale of Equity Interests (other than Disqualified Stock) of
the Company.

 

“ESSI Merger” means the acquisition by
the Company of all of the outstanding stock of Engineered Support Systems, Inc.
and the merger of Engineered Support Systems, Inc. into a wholly-owned
subsidiary of the Company.

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended.

 

“Existing Credit Agreement” means the
amended and restated senior credit agreement dated as of November 4, 2003
among the Company, the guarantors named therein, the institutions who are or
may become party thereto (the “Lenders”) and Bear Stearns Corporate
Lending Inc., as Syndication Agent for the Lenders, Fleet National Bank, as
Documentation Agent for the Lenders and Wachovia Bank, National Association, as
Administrative Agent for the Lenders providing for a revolving credit facility,
a letter of credit facility and a term loan facility.

 

“Existing Indebtedness” means any and
all Indebtedness of the Company and its Subsidiaries (other than Indebtedness
under the Credit Agreement), in existence on the date of this Indenture
including the Convertible Notes and all Acquired Debt acquired pursuant to the
ESSI Merger, until such amounts are repaid.

 

“Fair Market Value” means the value
that would be paid by a willing buyer to an unaffiliated willing seller in a
transaction not involving distress or necessity of either party, determined in
good faith by an officer of the Company if such value is below $2.0 million, or
by the Board of Directors of the Company (unless otherwise provided in this
Indenture).

 

 “Fixed
Charge Coverage Ratio” means with respect to any specified Person for any
period, the ratio of the Consolidated Cash Flow of such Person for such period
to the Fixed Charges of such Person for such period.  In the event that the specified Person or any
of its Restricted Subsidiaries incurs, assumes, Guarantees, repays,
repurchases, redeems, defeases or otherwise discharges any Indebtedness (other
than ordinary working capital borrowings) or issues, repurchases or redeems
preferred stock subsequent to the commencement of the period for which the
Fixed Charge Coverage Ratio is being calculated and on or prior to the date on
which the event for which the calculation of the Fixed Charge Coverage Ratio is
made (the “Calculation Date”), then the Fixed Charge Coverage Ratio will
be calculated giving pro forma effect to
such incurrence, assumption, Guarantee, repayment, repurchase, redemption,
defeasance or other discharge of Indebtedness, or such issuance, repurchase or
redemption of preferred stock, and the use of the proceeds therefrom, as if the
same had occurred at the beginning of the applicable four-quarter reference
period.

 

In addition,
for purposes of calculating the Fixed Charge Coverage Ratio and Senior Secured
Indebtedness Leverage Ratio:

 

10

 

(1)                                  acquisitions
that have been made by the specified Person or any of its Restricted
Subsidiaries, including through mergers or consolidations, or any Person or any
of its Restricted Subsidiaries acquired by the specified Person or any of its
Restricted Subsidiaries, and including any related financing transactions and
including increases in ownership of Restricted Subsidiaries, during the
four-quarter reference period or subsequent to such reference period and on or
prior to the Calculation Date will be given pro
forma effect (in accordance with Regulation S-X under the Securities Act)
as if they had occurred on the first day of the four-quarter reference period;

 

(2)                                  the
Consolidated Cash Flow attributable to discontinued operations, as determined
in accordance with GAAP, and operations or businesses (and ownership interests
therein) disposed of prior to the Calculation Date, will be excluded;

 

(3)                                  the
Fixed Charges attributable to discontinued operations, as determined in
accordance with GAAP, and operations or businesses (and ownership interests
therein) disposed of prior to the Calculation Date, will be excluded, but only
to the extent that the obligations giving rise to such Fixed Charges will not
be obligations of the specified Person or any of its Restricted Subsidiaries
following the Calculation Date;

 

(4)                                  any
Person that is a Restricted Subsidiary on the Calculation Date will be deemed
to have been a Restricted Subsidiary at all times during such four-quarter
period;

 

(5)                                  any
Person that is not a Restricted Subsidiary on the Calculation Date will be
deemed not to have been a Restricted Subsidiary at any time during such
four-quarter period; and

 

(6)                                  if
any Indebtedness bears a floating rate of interest, the interest expense on
such Indebtedness will be calculated as if the rate in effect on the
Calculation Date had been the applicable rate for the entire period (taking
into account any Hedging Obligation applicable to such Indebtedness if such Hedging
Obligation has a remaining term as at the Calculation Date in excess of twelve
months).

 

“Fixed Charges” means, with respect to
any specified Person for any period, the sum, without duplication, of:

 

(1)                                  the
consolidated interest expense of such Person and its Restricted Subsidiaries
for such period, whether paid or accrued, including, without limitation,
amortization of debt issuance costs and original issue discount, non-cash
interest payments, the interest component of any deferred payment obligations,
the interest component of all payments associated with Capital Lease
Obligations, imputed interest with respect to Attributable Debt, commissions,
discounts and other fees and charges incurred in respect of letter of credit or
bankers’ acceptance financings, and net of the effect of all payments made or
received pursuant to Hedging Obligations in respect of interest rates; plus

 

(2)                                  the
consolidated interest of such Person and its Restricted Subsidiaries that was
capitalized during such period; plus

 

11

 

(3)                                  any
interest accruing on Indebtedness of another Person that is Guaranteed by such
Person or one of its Restricted Subsidiaries or secured by a Lien on assets of
such Person or one of its Restricted Subsidiaries, whether or not such
Guarantee or Lien is called upon; plus

 

(4)                                  the
product of (a) all dividends, whether paid or accrued and whether or not
in cash, on any series of preferred stock of such Person or any of its
Restricted Subsidiaries, other than dividends on Equity Interests payable
solely in Equity Interests of the Company (other than Disqualified Stock) or to
the Company or a Restricted Subsidiary of the Company, times (b) a
fraction, the numerator of which is one and the denominator of which is one minus
the then current combined federal, state and local statutory tax rate of such
Person, expressed as a decimal, in each case, on a consolidated basis and in
accordance with GAAP.

 

“Foreign Borrowing Base” means, as of
any date, an amount equal to:

 

(1)                                  85%
of the face amount of all accounts receivable owned by the Company’s Foreign
Subsidiaries as of the end of the most recent fiscal quarter preceding such
date that were not more than 90 days past due; plus

 

(2)                                  65%
of the gross book value of all inventory owned by the Company’s Foreign
Subsidiaries as of the end of the most recent fiscal quarter preceding such
date.

 

“Foreign Subsidiary” means any
Restricted Subsidiary that is not a Domestic Subsidiary.  Notwithstanding the foregoing, Laurel Technologies
Partnership (d/b/a DRS Laurel Technologies), MSSC Company LP and Canopy
Technologies LLC and their respective subsidiaries will not be a Foreign
Subsidiary.

 

“GAAP” means generally accepted
accounting principles set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession, which are in
effect from time to time.

 

“Global Note Legend” means the legend
set forth in Section 2.06(e)(2), which is required to be placed on
all Global Notes issued under this Indenture.

 

“Global Notes” means, individually and
collectively, each of the Global Notes registered in the name of the Depositary
or its nominee, substantially in the form of Exhibit A hereto and
that bears the Global Note Legend and that has the “Schedule of Exchanges
of Interests in the Global Note” attached thereto, issued in accordance with Section 2.01,
2.06(d)(1) or 2.06(f) hereof.

 

“Government Securities” means direct
obligations of, or obligations guaranteed by, the United States of America for
the payment of which guarantees or obligations the full faith and credit of the
United States is pledged.

 

12

 

“Guarantee” means a guarantee other
than by endorsement of negotiable instruments for collection in the ordinary
course of business, direct or indirect, in any manner including, without
limitation, by way of a pledge of assets or through letters of credit or
reimbursement agreements in respect thereof, of all or any part of any
Indebtedness (whether arising by virtue of partnership arrangements, or by
agreements to keep-well, to purchase assets, goods, securities or services, to
take or pay or to maintain financial statement conditions or otherwise).

 

“Guarantors” means each of:

 

(1)                                  the
Company’s direct and indirect Domestic Subsidiaries (other than T-S Holding
Corporation) that are also Restricted Subsidiaries existing on the date of this
Indenture; and

 

(2)                                  any
other Subsidiary of the Company that executes a Subsidiary Guarantee in
accordance with the provisions of this Indenture,

 

and their
respective successors and assigns.

 

“Hedging Obligations” means, with
respect to any specified Person, the obligations of such Person under:

 

(1)                                  interest
rate swap agreements (whether from fixed to floating or from floating to
fixed), interest rate cap agreements and interest rate collar agreements;

 

(2)                                  other
agreements or arrangements designed to manage interest rates or interest rate
risk; and

 

(3)                                  other
agreements or arrangements designed to protect such Person against fluctuations
in currency exchange rates or commodity prices.

 

“Holder” means a Person in whose name
a Note is registered.

 

“Immaterial Subsidiary” means, as of
any date, any Restricted Subsidiary whose total assets, as of that date, are
less than $100,000 and whose total revenues for the most recent twelve-month
period do not exceed $100,000; provided that a Restricted Subsidiary
will not be considered to be an Immaterial Subsidiary if it, directly or
indirectly, guarantees or otherwise provides direct credit support for any
Indebtedness of the Company.

 

“Indebtedness” means, with respect to
any specified Person, any indebtedness of such Person (excluding accrued
expenses and trade payables), whether or not contingent:

 

(1)                                  in
respect of borrowed money;

 

(2)                                  evidenced
by bonds, notes, debentures or similar instruments or letters of credit (or
reimbursement agreements in respect thereof);

 

(3)                                  in
respect of banker’s acceptances;

 

13

 

(4)                                  representing
Capital Lease Obligations or Attributable Debt in respect of sale and leaseback
transactions;

 

(5)                                  representing
the balance deferred and unpaid of the purchase price of any property or
services due more than six months after such property is acquired or such
services are completed; or

 

(6)                                  representing
the net obligations under any Hedging Obligations,

 

if and to the
extent any of the preceding items (other than letters of credit, Attributable
Debt and Hedging Obligations) would appear as a liability upon a balance sheet
of the specified Person prepared in accordance with GAAP.  In addition, the term “Indebtedness” includes
all Indebtedness of others secured by a Lien on any asset of the specified
Person (whether or not such Indebtedness is assumed by the specified Person)
and, to the extent not otherwise included, the Guarantee by the specified
Person of any Indebtedness of any other Person.

 

“Indenture” has the meaning set forth
in the preamble hereto.

 

“Indirect Participant” means a Person
who holds a beneficial interest in a Global Note through a Participant.

 

“Initial Notes” means the first
$250,000,000 aggregate principal amount of Notes issued under this Indenture on
the date hereof.

 

“Investments” means, with respect to
any Person, all direct or indirect investments by such Person in other Persons
(including Affiliates) in the forms of loans (including Guarantees or other
obligations, other than advances to customers in the ordinary course of
business that are recorded as accounts receivable), advances or capital
contributions (excluding commission, travel and similar advances to officers
and employees made in the ordinary course of business), purchases or other
acquisitions for consideration of Indebtedness, Equity Interests or other
securities, together with all items that are or would be classified as
investments on a balance sheet prepared in accordance with GAAP.  If the Company or any Subsidiary of the
Company sells or otherwise disposes of any Equity Interests of any direct or
indirect Subsidiary of the Company such that, after giving effect to any such
sale or disposition, such Person is no longer a Subsidiary of the Company, the
Company will be deemed to have made an Investment on the date of any such sale
or disposition equal to the Fair Market Value of the Company’s Investments in
such Subsidiary that were not sold or disposed of in an amount determined as
provided in the final paragraph of Section 4.07 hereof.  The acquisition by the Company or any
Subsidiary of the Company of a Person that holds an Investment in a third
Person will be deemed to be an Investment by the Company or such Subsidiary in
such third Person in an amount equal to the Fair Market Value of the
Investments held by the acquired Person in such third Person in an amount
determined as provided in the final paragraph of Section 4.07
hereof.  Except as otherwise provided in
this Indenture, the amount of an Investment will be determined at the time the
Investment is made and without giving effect to subsequent changes in value.

 

“Legal Holiday” means a Saturday, a
Sunday or a day on which banking institutions in the City of New York or at a
place of payment are authorized by law, regulation or executive order to remain
closed.  If a payment date is a Legal
Holiday at a place of payment, payment

 

14

 

may be made at that place on
the next succeeding day that is not a Legal Holiday, and no interest shall
accrue on such payment for the intervening period.

 

“Lien” means, with respect to any
asset, any mortgage, lien, pledge, charge, security interest or encumbrance of
any kind in respect of such asset, whether or not filed, recorded or otherwise
perfected under applicable law, including any conditional sale or other title
retention agreement, any lease in the nature thereof, any option or other
agreement to sell, give a security interest in and any filing of or agreement
to give any financing statement under the Uniform Commercial Code (or
equivalent statutes) of any jurisdiction.

 

“Maximum Credit Facilities Cap” means,
as of any date of determination, an amount equal to the greatest principal
amount of Indebtedness that could have been incurred on such date pursuant to Section 4.09(a),
provided, that such amount shall not be limited to the extent the Senior
Secured Indebtedness Leverage Ratio for the Company’s most recently ended four
full fiscal quarters for which internal financial statements are available
immediately preceding such date would not have been in excess of 3.0 to 1,
determined on a pro forma basis (including a pro forma application of the net
proceeds of such Senior Secured Indebtedness), as if such Senior Secured
Indebtedness had been incurred at the beginning of such four-quarter period.

 

“Moody’s” means Moody’s Investor
Services, Inc.

 

“Net Income” means, with respect to
any specified Person, the net income (loss) of such Person, determined in
accordance with GAAP and before any reduction in respect of preferred stock
dividends, excluding, however:

 

(1)                                  any
gain (but not loss), together with any related provision for taxes on such gain
(but not loss), realized in connection with: 
(a) any Asset Sale; or (b) the disposition of any securities
by such Person or any of its Restricted Subsidiaries or the extinguishment of
any Indebtedness of such Person or any of its Restricted Subsidiaries; and

 

(2)                                  any
extraordinary gain (but not loss), together with any related provision for
taxes on such extraordinary gain (but not loss).

 

“Net Proceeds” means the aggregate
cash proceeds received by the Company or any of its Restricted Subsidiaries in
respect of any Asset Sale (including, without limitation, any cash received
upon the sale or other disposition of any non-cash consideration received in
any Asset Sale), net of the direct costs relating to such Asset Sale incurred
by the Company or any Restricted Subsidiary, including, without limitation,
legal, accounting and investment banking fees, and sales commissions, and any
relocation expenses incurred as a result of the Asset Sale, taxes paid or
payable as a result of the Asset Sale, in each case, after taking into account
any available tax credits or deductions and any tax sharing arrangements, and
amounts required to be applied to the repayment of Indebtedness, secured by a
Lien on the asset or assets that were the subject of such Asset Sale and any
reserve for adjustment in respect of the sale price of such asset or assets
established in accordance with GAAP.

 

“Non-Recourse Debt” means
Indebtedness:

 

15

 

(1)                                  as
to which neither the Company nor any of its Restricted Subsidiaries (a) provides
credit support of any kind (including any undertaking, agreement or instrument
that would constitute Indebtedness, other than the pledge of stock of an
Unrestricted Subsidiary), (b) is directly or indirectly liable as a
Guarantor or otherwise, or (c) constitutes the lender;

 

(2)                                  no
default with respect to which (including any rights that the holders of the
Indebtedness may have to take enforcement action against an Unrestricted
Subsidiary) would permit upon notice, lapse of time or both any holder of any
other Indebtedness (other than the Notes) of the Company or any of its
Restricted Subsidiaries to declare a default on such other Indebtedness or
cause the payment of the Indebtedness to be accelerated or payable prior to its
Stated Maturity; and

 

(3)                                  as
to which the lenders have been notified in writing that they will not have any
recourse to the stock or assets of the Company or any of its Restricted
Subsidiaries.

 

“Non-U.S. Person” means a Person who
is not a U.S. Person.

 

“Notes” has the meaning assigned to it
in the preamble to this Indenture. 
The Initial Notes and the Additional Notes shall be treated as a single
class for all purposes under this Indenture, and unless the context otherwise
requires, all references to the Notes shall include the Initial Notes and any
Additional Notes.

 

“Obligations” means any principal,
interest, penalties, fees, expenses, indemnifications, reimbursements
(including, without limitation, reimbursement for legal fees and expenses),
damages and other liabilities payable under the documentation governing any
Indebtedness.

 

“Officer” means, with respect to any
Person, the Chairman of the Board, the Chief Executive Officer, the President,
the Chief Operating Officer, the Chief Financial Officer, the Treasurer, any
Assistant Treasurer, the Controller, the Secretary or any Vice-President of
such Person.

 

“Officers’ Certificate” means a
certificate signed on behalf of the Company by two Officers of the Company, one
of whom must be the principal executive officer, the principal financial
officer, the treasurer or the principal accounting officer of the Company, that
meets the requirements of Section 13.05 hereof.

 

“Opinion of Counsel” means an opinion
from legal counsel who is reasonably acceptable to the Trustee, that meets the
requirements of Section 13.05 hereof.  The counsel may be an employee of or counsel
to the Company or any Subsidiary of the Company.

 

“Participant” means, with respect to
the Depositary, a Person who has an account with the Depositary.

 

“Permitted Business” means any of the
lines of business conducted by the Company and its Subsidiaries on the date of
this Indenture and any businesses similar, related, incidental or ancillary
thereto or that constitutes a reasonable extension or expansion thereof.

 

16

 

“Permitted Investments” means:

 

(1)                                  any
Investment in the Company or in a Restricted Subsidiary of the Company;

 

(2)                                  any
Investment in Cash Equivalents;

 

(3)                                  any
Investment by the Company or any Restricted Subsidiary of the Company in a
Person, if as a result of such Investment:

 

(a)                                  such
Person becomes a Restricted Subsidiary of the Company; or

 

(b)                                 such
Person is merged, consolidated or amalgamated with or into, or transfers or
conveys substantially all of its assets to, or is liquidated into, the Company
or a Restricted Subsidiary of the Company;

 

(4)                                  any
Investment made as a result of the receipt of non-cash consideration from an
Asset Sale that was made pursuant to and in compliance with Section 4.10
hereof;

 

(5)                                  any
Investment solely in exchange for the issuance of Equity Interests (other than
Disqualified Stock) of the Company;

 

(6)                                  any
Investments received in compromise or resolution of (A) obligations of
trade creditors or customers that were incurred in the ordinary course of
business of the Company or any of its Restricted Subsidiaries, including
pursuant to any plan of reorganization or similar arrangement upon the
bankruptcy or insolvency of any trade creditor or customer; or (B) litigation,
arbitration or other disputes with Persons who are not Affiliates;

 

(7)                                  Investments
represented by Hedging Obligations;

 

(8)                                  repurchases
of the Notes or the Senior Subordinated Notes;

 

(9)                                  receivables
owing to the Company or any Restricted Subsidiary created in the ordinary
course of business;

 

(10)                            payroll,
travel and similar advances that are expected at the time of such advances
ultimately to be treated as expenses for accounting purposes;

 

(11)                            Investments
in existence on the date of this Indenture;

 

(12)                            guarantees
of Indebtedness otherwise permitted to be incurred pursuant to this Indenture;

 

(13)                            Investments
in joint ventures and other business entities (in each case that are not
Subsidiaries of the Company) that are engaged in the same line of business as
the Company and its Restricted Subsidiaries, in an aggregate amount not to
exceed $25.0

 

17

 

million at any one time outstanding provided
that the original amount of any such Investment will be deemed reduced by any
permanent return of principal or equity thereon up to but not exceeding the
original amount of such Investment; and

 

(14)                            other
Investments in any Person having an aggregate Fair Market Value (measured on
the date each such Investment was made and without giving effect to subsequent
changes in value), when taken together with all other Investments made pursuant
to this clause (14) that are at the time outstanding not to exceed the
greater of (x) $50.0 million and (y) 5.0% of Consolidated Tangible Assets.

 

 “Permitted
Liens” means:

 

(1)                                  Liens
securing Indebtedness to the extent such Indebtedness is permitted by Sections
4.09(b)(1), 4.09(b)(12), 4.09(b)(13) and 4.09(b)(16)
hereof;

 

(2)                                  Liens
in favor of the Company or the Guarantors;

 

(3)                                  Liens
on property of a Person existing at the time such Person is merged with or into
or consolidated with the Company or any Subsidiary of the Company; provided
that such Liens were in existence prior to the contemplation of such merger or
consolidation and do not extend to any assets other than those of the Person
merged into or consolidated with the Company or the Subsidiary;

 

(4)                                  Liens
on property (including Capital Stock) existing at the time of acquisition of
the property by the Company or any Subsidiary of the Company, provided
that such Liens were in existence prior to, such acquisition, and not incurred
in contemplation of, such acquisition;

 

(5)                                  Liens
to secure the performance of statutory obligations, surety or appeal bonds,
performance bonds or other obligations of a like nature incurred in the
ordinary course of business;

 

(6)                                  Liens
to secure Indebtedness (including Capital Lease Obligations) permitted by Section 4.09(b)(4) covering
only the assets acquired with or financed by such Indebtedness;

 

(7)                                  Liens
existing on the date of this Indenture;

 

(8)                                  Liens
for taxes, assessments or governmental charges or claims that are not yet
delinquent or that are being contested in good faith by appropriate proceedings
promptly instituted and diligently concluded; provided that any reserve
or other appropriate provision as is required in conformity with GAAP has been
made therefor;

 

(9)                                  Liens
imposed by law, such as carriers’, warehousemen’s, landlord’s and mechanics’
Liens, in each case, incurred in the ordinary course of business or good faith
deposits in connection with bids, tenders, contracts or leases to which the
Company or any Restricted Subsidiary is a party;

 

18

 

(10)                            survey
exceptions, easements, or reservations of, or rights of others for, licenses,
rights-of-way, sewers, electric lines, telegraph and telephone lines and other
similar purposes, or zoning or other restrictions as to the use of real
property that were not incurred in connection with Indebtedness and that do not
in the aggregate materially adversely affect the value of said properties or
materially impair their use in the operation of the business of such Person;

 

(11)                            Liens
created for the benefit of (or to secure) the Notes (or the Subsidiary
Guarantees);

 

(12)                            Liens
to secure any Permitted Refinancing Indebtedness permitted to be incurred under
this Indenture; provided, however, that:

 

(a)                                  the
new Lien shall be limited to all or part of the same property and assets that
secured or, under the written agreements pursuant to which the original Lien
arose, could secure the original Lien (plus improvements and accessions
to, such property or proceeds or distributions thereof); and

 

(b)                                 the
Indebtedness secured by the new Lien is not increased to any amount greater
than the sum of (x) the outstanding principal amount or, if greater, committed
amount, of the Permitted Referencing Indebtedness and (y) an amount necessary
to pay any fees and expenses, including premiums, related to such refinancings,
refunding, extension, renewal or replacement;

 

(13)                            licenses
of intellectual property in the ordinary course of business;

 

(14)                            Liens
arising out of judgments, decrees, orders or awards in respect of which the
Company shall in good faith be prosecuting on appeal or proceeding for review,
which appeal or proceeding shall not have been finally terminated or if the
period within such appeal or proceeding may be initiated shall not have
expired;

 

(15)                            Liens
securing Hedging Obligations;

 

(16)                            Liens
on Capital Stock of an Unrestricted Subsidiary that secure Indebtedness or
other obligations of such Unrestricted Subsidiary;

 

(17)                            leases,
subleases, licenses or sublicenses to third parties and related UCC Financing Statements
entered into in the ordinary course of business;

 

(18)                            Liens
securing a defeasance trust entered into in accordance with this Indenture;

 

(19)                            (i) Liens
of a collecting bank arising in the ordinary course of business under Section 4-208
of the Uniform Commercial Code in effect in the relevant jurisdiction and (ii) Liens
of any depositary bank in connection with statutory, common law and contractual
rights of set off and recoupment for customary account fees or charges with
respect to any deposit account of the Company or any Restricted Subsidiary; and

 

19

 

(20)                            Liens
incurred in the ordinary course of business of the Company or any Subsidiary of
the Company with respect to obligations that do not exceed $25.0 million or
2.5% of Consolidated Tangible Assets at any one time outstanding.

 

“Permitted
Refinancing Indebtedness” means any Indebtedness of the Company or any of
its Restricted Subsidiaries issued in exchange for, or the net proceeds of
which are used to refund, refinance, replace, defease or discharge other
Indebtedness of the Company or any of its Restricted Subsidiaries (other than
intercompany Indebtedness); provided that

 

(1)                                  the
principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount (or accreted
value, if applicable) of the Indebtedness extended, refinanced, renewed,
replaced, defeased or refunded (plus all accrued interest on the
Indebtedness and the amount of all expenses and premiums incurred in connection
therewith);

 

(2)                                  such
Permitted Refinancing Indebtedness has a final maturity date later than the
final maturity date of, and has a Weighted Average Life to Maturity equal to or
greater than the Weighted Average Life to Maturity of, the Indebtedness being
extended, refinanced, renewed, replaced, defeased or refunded;

 

(3)                                  if
the Indebtedness being extended, refinanced, renewed, replaced, defeased or
refunded is subordinated in right of payment to the Notes, such Permitted
Refinancing Indebtedness has a final maturity date later than the final
maturity date of, and is subordinated in right of payment to, the Notes on
terms at least as favorable, taken as a whole, to the holders of Notes as those
contained in the documentation governing the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded; and

 

(4)                                  such
Indebtedness is incurred either by the Company or by the Restricted Subsidiary
who is the obligor on the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded.

 

“Person”
means any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, limited liability
company or government or other entity.

 

“Reference
Treasury Dealer Quotation” means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Company, of
the bid and asked prices for the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) quoted in writing to the Company
by such Reference Treasury Dealer at 5:00 p.m. on the third business date
preceding such redemption date.

 

“Reference
Treasury Dealer” means any primary U.S. government securities dealer in the
City of New York selected by the Company.

 

“Representative”
means the indenture trustee or other trustee, agent or representative for any
Senior Debt.

 

20

 

 “Responsible Officer,” when used with
respect to the Trustee, means any officer within the Corporate Trust
Administration of the Trustee (or any successor group of the Trustee) or any
other officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and also means, with respect
to a particular corporate trust matter, any other officer to whom such matter
is referred because of his knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this
Indenture.

 

“Restricted
Investment” means an Investment other than a Permitted Investment.

 

“Restricted
Subsidiary” of a Person means any Subsidiary of the referent Person that is
not an Unrestricted Subsidiary.

 

“S&P”
means Standard & Poor’s Ratings Group.

 

“SEC”
means the Securities and Exchange Commission.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Senior
Debt” means:

 

(1)                                  all
Indebtedness of the Company or any Guarantor outstanding under the Notes,
Credit Facilities and all Hedging Obligations with respect thereto;

 

(2)                                  any
other Indebtedness of the Company or any Guarantor permitted to be incurred
under the terms of this Indenture, unless the instrument under which such
Indebtedness is incurred expressly provides that it is on a parity with or
subordinated in right of payment to the Senior Subordinated Notes or any Subsidiary
Guarantee; and

 

(3)                                  all
Obligations with respect to the items listed in the preceding clauses (1) and
(2).

 

Notwithstanding anything to
the contrary in the foregoing, Senior Debt will not include:

 

(1)                                  any
liability for federal, state, local or other taxes owed or owing by the
Company;

 

(2)                                  any
intercompany Indebtedness of the Company or any of its Subsidiaries to the
Company or any of its Affiliates;

 

(3)                                  any
trade payables;

 

(4)                                  the
portion of any Indebtedness that is incurred in violation of this Indenture; or

 

(5)                                  Indebtedness
which is classified as non-recourse in accordance with GAAP or any unsecured
claim arising in respect thereof by reason of the application of section 1111(b)(1) of
the Bankruptcy Code.

 

21

 

“Senior
Secured Indebtedness Leverage Ratio” means, as of any date of
determination, the ratio of the principal amount of Senior Secured Indebtedness
of the Company and its Restricted Subsidiaries as of such date, determined on a
consolidated basis for the Company and its Restricted Subsidiaries in
accordance with GAAP, to the Consolidated Cash Flow of the Company with respect
to the four most recently completed fiscal quarters of such Person through such
date. In the event that the specified Person or any of its Restricted
Subsidiaries incurs, assumes, Guarantees, repays, repurchases, redeems,
defeases or otherwise discharges any Senior Secured Indebtedness subsequent to
the commencement of the period for which the Senior Secured Indebtedness Leverage
Ratio is being calculated and on or prior to the date on which the event for
which the calculation of the Senior Secured Indebtedness Leverage Ratio is
made, then the Senior Secured Indebtedness Leverage Ratio will be calculated
giving pro forma effect to such incurrence, assumption, Guarantee, repayment,
repurchase, redemption, defeasance or other discharge of Senior Secured
Indebtedness, or such issuance, repurchase or redemption of preferred stock,
and the use of the proceeds therefrom, as if the same had occurred at the
beginning of the applicable four-quarter reference period.

 

“Senior
Secured Indebtedness” means, with respect to any Person, at any date of
determination, the aggregate principal amount of secured indebtedness of such
Person (other than any Subordinated Indebtedness of such Person) at such date,
as determined on a consolidated basis for such Person and its Restricted
Subsidiaries in accordance with GAAP.

 

“Senior
Subordinated Indebtedness” means

 

(1)                                  with
respect to the Company, Indebtedness which ranks equal in right of payment to
the Senior Subordinated Notes, and

 

(2)                                  with
respect to any Guarantor, Indebtedness which ranks equal in right of payment to
the Guarantee of such entity of Senior Subordinated Notes.

 

“Senior
Subordinated Notes” means the $250.0 million in aggregate principal amount
of 65/8% Senior Subordinated Notes due 2016 and any
additional Senior Subordinated Notes issued by the Company.

 

“Significant
Subsidiary” means any Subsidiary that would be a “significant subsidiary”
as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated
pursuant to the Securities Act, as such Regulation is in effect on the date of
this Indenture.

 

“Stated
Maturity” means, with respect to any installment of interest or principal
on any series of Indebtedness, the date on which the payment of interest or
principal was scheduled to be paid in the documentation governing such
Indebtedness as of the date of this Indenture, and will not include any
contingent obligations to repay, redeem or repurchase any such interest or
principal prior to the date originally scheduled for the payment thereof.

 

“Subordinated
Indebtedness” means, with respect to each series of Notes,

 

(1)                                  with
respect to the Company, any Indebtedness which is by its terms subordinated in
right of payment to such series of Notes, and

 

22

 

(2)                                  any
Indebtedness of any Guarantor which is by its terms subordinated in right of
payment to the guarantee of such entity of such series of Notes.

 

“Subsidiary”
means, with respect to any specified Person:

 

(1)                                  any
corporation, association or other business entity of which more than 50% of the
total voting power of shares of Capital Stock entitled (without regard to the
occurrence of any contingency and after giving effect to any voting agreement
or stockholders’ agreement that effectively transfers voting power) to vote in
the election of directors, managers or trustees of the corporation, association
or other business entity is at the time owned or controlled, directly or
indirectly, by that Person or one or more of the other Subsidiaries of that
Person (or a combination thereof); and

 

(2)                                  any
partnership (a) the sole general partner or the managing general partner
of which is such Person or a Subsidiary of such Person or (b) the only
general partners of which are that Person or one or more Subsidiaries of that
Person (or any combination thereof).

 

“Subsidiary
Guarantee” means the Guarantee by each Guarantor of the Company’s payment
obligations under this Indenture and on the Notes, executed pursuant to the
provisions of this Indenture.

 

“TIA”
means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in
effect on the date on which this Indenture is qualified thereunder, as may be
amended from time to time.

 

“Treasury
Rate” means, with respect to any redemption date, the rate per annum equal
to the semi-annual equivalent yield to maturity of the Comparable Treasury
Issue, assuming a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for
such redemption period.

 

“Trustee”
means the party named as such in the preamble to this Indenture until a
successor replaces it in accordance with the applicable provisions of this
Indenture and thereafter means the successor serving hereunder.

 

 “Unrestricted Subsidiary” means any
Subsidiary of the Company that is designated by the Board of Directors as an
Unrestricted Subsidiary pursuant to a resolution of the Board of Directors, but
only to the extent that such Subsidiary:

 

(1)                                  has
no Indebtedness other than Non-Recourse Debt;

 

(2)                                  except
as permitted by Section 4.11 hereof, is not party to any agreement,
contract, arrangement or understanding with the Company or any Restricted
Subsidiary of the Company unless the terms of any such agreement, contract,
arrangement or understanding are no less favorable to the Company or such
Restricted Subsidiary, taken as a whole, than those that might be obtained at
the time from Persons who are not Affiliates of the Company;

 

23

 

(3)                                  is
a Person with respect to which neither the Company nor any of its Restricted
Subsidiaries has any direct or indirect obligation (a) to subscribe for
additional Equity Interests or (b) to maintain or preserve such Person’s
financial condition or to cause such Person to achieve any specified levels of
operating results; and

 

(4)                                  has
not guaranteed or otherwise directly or indirectly provided credit support for
any Indebtedness of the Company or any of its Restricted Subsidiaries.

 

Any
designation of a Subsidiary of the Company as an Unrestricted Subsidiary will
be evidenced to the Trustee by filing with the Trustee a certified copy of the
Board Resolution giving effect to such designation and an Officers’ Certificate
certifying that such designation complied with the preceding conditions and was
permitted by Section 4.07 hereof. 
If, at any time, any Unrestricted Subsidiary would fail to meet the
preceding requirements as an Unrestricted Subsidiary, it will thereafter cease
to be an Unrestricted Subsidiary for purposes of this Indenture and any
Indebtedness of such Subsidiary will be deemed to be incurred by a Restricted
Subsidiary of the Company as of such date and, if such Indebtedness is not
permitted to be incurred as of such date pursuant to Section 4.09
hereof, the Company will be in default of such covenant.  The Board of Directors of the Company may at
any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary, provided
that such designation will be deemed to be an incurrence of Indebtedness by a
Restricted Subsidiary of the Company of any outstanding Indebtedness of such
Unrestricted Subsidiary and such designation will only be permitted if (1) such
Indebtedness is permitted under Section 4.09 hereof calculated on a
pro forma basis as if such designation had
occurred at the beginning of the four-quarter reference period; and (2) no
Default or Event of Default would be in existence following such designation.

 

 “Voting Stock” of any Person as of any
date means the Capital Stock of such Person that is at the time entitled to
vote in the election of the Board of Directors of such Person.

 

“Weighted
Average Life to Maturity” means, when applied to any Indebtedness at any
date, the number of years obtained by dividing:

 

(1)                                  the
sum of the products obtained by multiplying (a) the amount of each then
remaining installment, sinking fund, serial maturity or other required payments
of principal, including payment at final maturity, in respect of the
Indebtedness, by (b) the number of years (calculated to the nearest
one-twelfth) that will elapse between such date and the making of such payment;
by

 

(2)                                  the
then outstanding principal amount of such Indebtedness.

 

24

 

Section 1.02                                Other
Definitions.

 

	
  Term

  	
   

  	
  Defined in

  Section

  
	
   

  	
   

  	
   

  
	
  “Affiliate Transaction”

  	
   

  	
  4.11

  
	
  “Asset Sale Offer”

  	
   

  	
  3.09

  
	
  “Authentication Order”

  	
   

  	
  2.02

  
	
  “Change of Control Offer”

  	
   

  	
  4.15

  
	
  “Change of Control Payment”

  	
   

  	
  4.15

  
	
  “Change of Control Payment Date”

  	
   

  	
  4.15

  
	
  “Covenant Defeasance”

  	
   

  	
  8.03

  
	
  “DTC”

  	
   

  	
  2.03

  
	
  “Event of Default”

  	
   

  	
  6.01

  
	
  “Excess Proceeds”

  	
   

  	
  4.10

  
	
  “incur”

  	
   

  	
  4.09

  
	
  “Legal Defeasance”

  	
   

  	
  8.02

  
	
  “Offer Amount”

  	
   

  	
  3.09

  
	
  “Offer Period”

  	
   

  	
  3.09

  
	
  “Paying Agent”

  	
   

  	
  2.03

  
	
  “Permitted Debt”

  	
   

  	
  4.09

  
	
  “Payment Default”

  	
   

  	
  6.01

  
	
  “Purchase Date”

  	
   

  	
  3.09

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Restricted Payments”

  	
   

  	
  4.07

  

 

 

Section 1.03                                Incorporation
by Reference of Trust Indenture Act. 
Whenever this Indenture refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Indenture.

 

The following
TIA terms used in this Indenture have the following meanings:

 

“indenture
securities” means the Notes;

 

“indenture
security Holder” means a Holder of a Note;

 

“indenture
trustee” or “institutional trustee” means the Trustee; and

 

“obligor”
on the Notes and the Subsidiary Guarantees means the Company and the
Guarantors, respectively, and any successor obligor upon the Notes and the
Subsidiary Guarantees, respectively.

 

All other
terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule under the TIA have the
meanings so assigned to them.

 

Section 1.04                                Rules of
Construction.  Unless the context
otherwise requires:

 

(1)                                  a
term has the meaning assigned to it;

 

(2)                                  an
accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

 

(3)                                  “or”
is not exclusive;

 

(4)                                  words
in the singular include the plural, and in the plural include the singular;

 

25

 

(5)                                  “will”
shall be interpreted to express a command;

 

(6)                                  provisions
apply to successive events and transactions; and

 

(7)                                  references
to sections of or rules under the Securities Act will be deemed to include
substitute, replacement of successor sections or rules adopted by the SEC
from time to time.

 

ARTICLE 2

 

THE NOTES

 

For
the purposes of this series of Securities (as defined in the Base Indenture),
this Article 2 shall amend and restate in its entirety Article Two of
the Base Indenture.

 

Section 2.01                                Form and
Dating.  (a)  General.  The Notes and the Trustee’s certificate of
authentication will be substantially in the form of Exhibit A
hereto.  The Notes may have notations,
legends or endorsements required by law, stock exchange rule or
usage.  Each Note will be dated the date
of its authentication.  The Notes shall
be in denominations of $1,000 and integral multiples thereof.

 

The terms and
provisions contained in the Notes will constitute, and are hereby expressly
made, a part of this Indenture and the Company, the Guarantors and the Trustee,
by their execution and delivery of this Indenture, expressly agree to such
terms and provisions and to be bound thereby. 
However, to the extent any provision of any Note conflicts with the
express provisions of this Indenture, the provisions of this Indenture shall
govern and be controlling.

 

(b)                                 Global
Notes.  Notes issued in global form
will be substantially in the form of Exhibit A attached hereto
(including the Global Note Legend thereon and the “Schedule of Exchanges
of Interests in the Global Note” attached thereto).  Certificated Notes will be substantially in
the form of Exhibit A attached hereto (but without the Global Note
Legend thereon and without the “Schedule of Exchanges of Interests in the
Global Note” attached thereto).  Each
Global Note will represent such of the outstanding Notes as will be specified
therein and each shall provide that it represents the aggregate principal
amount of outstanding Notes from time to time endorsed thereon and that the
aggregate principal amount of outstanding Notes represented thereby may from
time to time be reduced or increased, as appropriate, to reflect exchanges and
redemptions.  Any endorsement of a Global
Note to reflect the amount of any increase or decrease in the aggregate
principal amount of outstanding Notes represented thereby will be made by the
Trustee or the Custodian, at the direction of the Trustee, in accordance with
instructions given by the Holder thereof as required by Section 2.06
hereof.

 

Section 2.02                                Execution
and Authentication.  At least one
Officer must sign the Notes for the Company by manual or facsimile signature.

 

If an Officer
whose signature is on a Note no longer holds that office at the time a Note is
authenticated, the Note will nevertheless be valid.

 

26

 

A Note will
not be valid until authenticated by the manual signature of the Trustee.  The signature will be conclusive evidence
that the Note has been authenticated under this Indenture.

 

The Trustee
will, upon receipt of a written order of the Company signed by two Officers (an
“Authentication Order”), authenticate Notes for original issue up to the
aggregate principal amount stated on the face of the Notes.

 

The Trustee
may appoint an authenticating agent acceptable to the Company to authenticate
Notes.  An authenticating agent may
authenticate Notes whenever the Trustee may do so.  Each reference in this Indenture to authentication
by the Trustee includes authentication by such agent.  An authenticating agent has the same rights
as an Agent to deal with Holders or an Affiliate of the Company.

 

Section 2.03                                Registrar
and Paying Agent.  The Company will
maintain an office or agency where Notes may be presented for registration of
transfer or for exchange (“Registrar”) and an office or agency where
Notes may be presented for payment (“Paying Agent”).  The Registrar will keep a register of the
Notes and of their transfer and exchange. 
The Company may appoint one or more co-registrars and one or more
additional paying agents.  The term “Registrar”
includes any co-registrar and the term “Paying Agent” includes any additional
paying agent.  The Company may change any
Paying Agent or Registrar without notice to any Holder.  The Company will notify the Trustee in
writing of the name and address of any Agent not a party to this
Indenture.  If the Company fails to
appoint or maintain another entity as Registrar or Paying Agent, the Trustee
shall act as such.  The Company or any of
its Subsidiaries may act as Paying Agent or Registrar.

 

The Company
initially appoints The Depository Trust Company (“DTC”) to act as
Depositary with respect to the Global Notes.

 

The Company
initially appoints the Trustee to act as the Registrar and Paying Agent and to
act as Custodian with respect to the Global Notes.

 

So long as the
Holder is the registered owner of any Notes, the Holder will be considered the
sole holder under this Indenture of any Notes evidenced by the Global
Notes.  Beneficial owners of Notes
evidenced by the Global Notes will not be considered the owners or holders of
the Notes under this Indenture for any purpose, including with respect to the
giving of any directions, instructions or approvals to the Trustee.

 

Section 2.04                                Paying
Agent to Hold Money in Trust.  The
Company will require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent will hold in trust for the benefit of Holders or
the Trustee all money held by the Paying Agent for the payment of principal,
premium, if any, or interest on the Notes, and will notify the Trustee of any
default by the Company in making any such payment.  While any such default continues, the Trustee
may require a Paying Agent to pay all money held by it to the Trustee.  The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying
Agent (if other than the Company or a Subsidiary) will have no further
liability for the money.  If the Company
or a Subsidiary acts as Paying Agent, it will segregate and hold in a separate
trust fund for the benefit of the Holders all money held by it as Paying

 

27

 

Agent.  Upon any bankruptcy or reorganization
proceedings relating to the Company, the Trustee will serve as Paying Agent for
the Notes.

 

Section 2.05                                Holder
Lists.  The Trustee will preserve in
as current a form as is reasonably practicable the most recent list available
to it of the names and addresses of all Holders and shall otherwise comply with
TIA § 312(a).  If the Trustee is not
the Registrar, the Company will furnish to the Trustee at least seven Business
Days before each interest payment date and at such other times as the Trustee
may request in writing, a list in such form and as of such date as the Trustee
may reasonably require of the names and addresses of the Holders of Notes and
the Company shall otherwise comply with TIA § 312(a).

 

Neither the Company nor the
Trustee will be liable for any delay by the Holder or DTC in identifying the
beneficial owners of Notes and the Company and the Trustee may conclusively
rely on, and will be protected in relying on, instructions from the Holder or
DTC for all purposes.

 

Section 2.06                                Transfer
and Exchange.  (a)  Transfer
and Exchange of Global Notes.  A
Global Note may not be transferred as a whole except by the Depositary to a
nominee of the Depositary, by a nominee of the Depositary to the Depositary or
to another nominee of the Depositary, or by the Depositary or any such nominee
to a successor Depositary or a nominee of such successor Depositary.  All Global Notes will be exchanged by the
Company for Certificated Notes if:

 

(1)                                  the
Company delivers to the Trustee notice from the Depositary that it is unwilling
or unable to continue to act as Depositary and the Company fails to appoint a
successor Depositary within 120 days after the date of such notice from the
Depositary or that it is no longer a clearing agency registered under the
Exchange Act; or

 

(2)                                  the
Company in its sole discretion determines that the Global Notes (in whole but
not in part) should be exchanged for Certificated Notes and delivers a written
notice to such effect to the Trustee.

 

(3)                                  Upon
the occurrence of either of the preceding events in (1) or (2) above,
Certificated Notes shall be issued in such names as the Depositary shall
instruct the Trustee.  Global Notes also
may be exchanged or replaced, in whole or in part, as provided in Sections
2.07 and 2.10 hereof.  Every
Note authenticated and delivered in exchange for, or in lieu of, a Global Note
or any portion thereof, pursuant to this Section 2.06 or Section 2.07
or 2.10 hereof, shall be authenticated and delivered in the form of, and
shall be, a Global Note.  A Global Note
may not be exchanged for another Note other than as provided in this Section 2.06(a),
however, beneficial interests in a Global Note may be transferred and exchanged
as provided in Section 2.06(b) hereof.

 

(b)                                 Transfer
and Exchange of Beneficial Interests in the Global Notes.  The transfer and exchange of beneficial
interests in the Global Notes will be effected through the Depositary, in
accordance with the provisions of this Indenture and the Applicable Procedures.  Transfers of beneficial interests in the
Global Notes also will require compliance with either subparagraph (1) or
(2) below, as applicable, as well as one or more of the other
following subparagraphs, as applicable:

 

28

 

(1)                                  Transfer
of Beneficial Interests in the Same Global Note.  Beneficial interests in any Global Note may
be transferred to Persons who take delivery thereof in the form of a beneficial
interest in a Global Note.  No written
orders or instructions shall be required to be delivered to the Registrar to
effect the transfers described in this Section 2.06(b)(1).

 

(2)                                  All
Other Transfers and Exchanges of Beneficial Interests in Global Notes.  In connection with all transfers and
exchanges of beneficial interests that are not subject to Section 2.06(b)(1) above,
the transferor of such beneficial interest must deliver to the Registrar
either:

 

(A)                              both:

 

(i)                                     a
written order from a Participant or an Indirect Participant given to the
Depositary in accordance with the Applicable Procedures directing the
Depositary to credit or cause to be credited a beneficial interest in another
Global Note in an amount equal to the beneficial interest to be transferred or
exchanged; and

 

(ii)                                  instructions
given in accordance with the Applicable Procedures containing information
regarding the Participant account to be credited with such increase; or

 

(B)                                both:

 

(i)                                     a
written order from a Participant or an Indirect Participant given to the
Depositary in accordance with the Applicable Procedures directing the
Depositary to cause to be issued a Certificated Note in an amount equal to the
beneficial interest to be transferred or exchanged; and

 

(ii)                                  instructions
given by the Depositary to the Registrar containing information regarding the
Person in whose name such Certificated Note shall be registered to effect the
transfer or exchange referred to in (1) above.  Upon satisfaction of all of the requirements
for transfer or exchange of beneficial interests in Global Notes contained in
this Indenture and the Notes or otherwise applicable under the Securities Act,
the Trustee shall adjust the principal amount of the relevant Global Note(s)
pursuant to Section 2.06(f) hereof.

 

(c)                                  Transfer
or Exchange of Beneficial Interests for Certificated Notes.

 

(1)                                  Beneficial
Interests in Global Notes to Certificated Notes.  If any holder of a beneficial interest in a
Global Note proposes to exchange such beneficial interest for a Certificated
Note or to transfer such beneficial interest to a Person who takes delivery
thereof in the form of a Certificated Note, then, upon satisfaction of the
conditions set forth in Section 2.06(b)(2) hereof, the Trustee
will cause the aggregate principal amount of the applicable Global Note to be
reduced accordingly pursuant to Section 2.06(f) hereof, and
the Company will execute and the Trustee will authenticate and deliver to the

 

29

 

Person designated in the instructions a Certificated
Note in the appropriate principal amount. 
Any Certificated Note issued in exchange for a beneficial interest
pursuant to this Section 2.06(c)(3) will be registered in such
name or names and in such authorized denomination or denominations as the
holder of such beneficial interest requests through instructions to the
Registrar from or through the Depositary and the Participant or Indirect
Participant.  The Trustee will deliver
such Certificated Notes to the Persons in whose names such Notes are so
registered.

 

(d)                                 Transfer
and Exchange of Certificated Notes for Beneficial Interests.

 

(1)                                  Certificated
Notes to Beneficial Interests in Global Notes.  A Holder of an Certificated Note may exchange
such Note for a beneficial interest in a Global Note or transfer such
Certificated Notes to a Person who takes delivery thereof in the form of a
beneficial interest in a Global Note at any time.  Upon receipt of a request for such an
exchange or transfer, the Trustee will cancel the applicable Certificated Note
and increase or cause to be increased the aggregate principal amount of one of
the Global Notes.

 

If any such
exchange or transfer from a Certificated Note to a beneficial interest is
effected pursuant to subparagraph  (1) above at a time when a
Global Note has not yet been issued, the Company will issue and, upon receipt
of an Authentication Order in accordance with Section 2.02 hereof,
the Trustee will authenticate one or more Global Notes in an aggregate
principal amount equal to the principal amount of Certificated Notes so
transferred.

 

(e)                                  Transfer
and Exchange of Certificated Notes for Certificated Notes.  Upon request by a Holder of Certificated
Notes and such Holder’s compliance with the provisions of this Section 2.06(e),
the Registrar will register the transfer or exchange of Certificated
Notes.  Prior to such registration of
transfer or exchange, the requesting Holder must present or surrender to the
Registrar the Certificated Notes duly endorsed or accompanied by a written
instruction of transfer in form satisfactory to the Registrar duly executed by
such Holder or by its attorney, duly authorized in writing.  In addition, the requesting Holder must
provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section 2.06(e).

 

(1)                                  Certificated
Notes to Certificated Notes.  A
Holder of Certificated Notes may transfer such Notes to a Person who takes
delivery thereof in the form of an Certificated Note.  Upon receipt of a request to register such a
transfer, the Registrar shall register the Certificated Notes pursuant to the
instructions from the Holder thereof.

 

(2)                                  Global
Note Legend.  Each Global Note will
bear a legend in substantially the following form:

 

“THIS GLOBAL
NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE SUPPLEMENTAL INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY
CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS
HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE
SUPPLEMENTAL INDENTURE, (2) THIS

 

30

 

GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT
TO SECTION 2.06(a) OF THE SUPPLEMENTAL INDENTURE, (3) THIS
GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11
OF THE SUPPLEMENTAL INDENTURE AND (4) THIS GLOBAL NOTE MAY BE
TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE
COMPANY.

 

UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM,
THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
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.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW
YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

(f)                                    Cancellation
and/or Adjustment of Global Notes. 
At such time as all beneficial interests in a particular Global Note
have been exchanged for Certificated Notes or a particular Global Note has been
redeemed, repurchased or canceled in whole and not in part, each such Global
Note will be returned to or retained and canceled by the Trustee in accordance
with Section 2.11 hereof.  At
any time prior to such cancellation, if any beneficial interest in a Global
Note is exchanged for or transferred to a Person who will take delivery thereof
in the form of a beneficial interest in another Global Note or for Certificated
Notes, the principal amount of Notes represented by such Global Note will be
reduced accordingly and an endorsement will be made on such Global Note by the
Trustee or by the Depositary at the direction of the Trustee to reflect such
reduction; and if the beneficial interest is being exchanged for or transferred
to a Person who will take delivery thereof in the form of a beneficial interest
in another Global Note, such other Global Note will be increased accordingly
and an endorsement will be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

 

(g)                                 General
Provisions Relating to Transfers and Exchanges.

 

(1)                                  To
permit registrations of transfers and exchanges, the Company will execute and
the Trustee will authenticate Global Notes and Certificated Notes upon receipt
of an Authentication Order in accordance with Section 2.02 or at
the Registrar’s request.

 

31

 

(2)                                  No
service charge will be made to a Holder of a beneficial interest in a Global
Note or to a Holder of a Certificated Note for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection therewith
(other than any such transfer taxes or similar governmental charge payable upon
exchange or transfer pursuant to Sections 2.10, 3.06, 3.09,
4.10, 4.15 and 9.05 hereof).

 

(3)                                  The
Registrar will not be required to register the transfer of or exchange of any
Note selected for redemption in whole or in part, except the unredeemed portion
of any Note being redeemed in part.

 

(4)                                  All
Global Notes and Certificated Notes issued upon any registration of transfer or
exchange of Global Notes or Certificated Notes will be the valid obligations of
the Company, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Global Notes or Certificated Notes surrendered upon such
registration of transfer or exchange.

 

(5)                                  Neither
the Registrar nor the Company will be required:

 

(A)                              to
issue, to register the transfer of or to exchange any Notes during a period
beginning at the opening of business 15 days before the day of any selection of
Notes for redemption under Section 3.02 hereof and ending at the
close of business on the day of selection;

 

(B)                                to
register the transfer of or to exchange any Note selected for redemption in
whole or in part, except the unredeemed portion of any Note being redeemed in
part; or

 

(C)                                to
register the transfer of or to exchange a Note between a record date and the
next succeeding interest payment date.

 

(6)                                  Prior
to due presentment for the registration of a transfer of any Note, the Trustee,
any Agent and the Company may deem and treat the Person in whose name any Note
is registered as the absolute owner of such Note for the purpose of receiving
payment of principal of and interest on such Notes and for all other purposes,
and none of the Trustee, any Agent or the Company shall be affected by notice
to the contrary.

 

(7)                                  The
Trustee will authenticate Global Notes and Certificated Notes in accordance
with the provisions of Section 2.02 hereof.

 

(8)                                  All
certifications, certificates and Opinions of Counsel required to be submitted
to the Registrar pursuant to this Section 2.06 to effect a
registration of transfer or exchange may be submitted by facsimile.

 

Section 2.07                                Replacement
Notes.  If any mutilated Note is
surrendered to the Trustee or the Company and the Trustee receives evidence to
its satisfaction of the destruction, loss or theft of any Note, the Company
will issue and the Trustee, upon receipt of an Authentication Order, will authenticate
a replacement Note if the Trustee’s requirements are met.  If required by the

 

32

 

Trustee or the
Company, an indemnity bond must be supplied by the Holder that is sufficient in
the judgment of the Trustee and the Company to protect the Company, the
Trustee, any Agent and any authenticating agent from any loss that any of them
may suffer if a Note is replaced.  The
Company may charge for its expenses in replacing a Note.

 

Every
replacement Note is an additional obligation of the Company and will be
entitled to all of the benefits of this Indenture equally and proportionately
with all other Notes duly issued hereunder.

 

Section 2.08                                Outstanding
Notes.  The Notes outstanding at any
time are all the Notes authenticated by the Trustee except for those canceled
by it, those delivered to it for cancellation, those reductions in the interest
in a Global Note effected by the Trustee in accordance with the provisions
hereof and those described in this Section as not outstanding.  Except as set forth in Section 2.09
hereof, a Note does not cease to be outstanding because the Company or an
Affiliate of the Company holds the Note; however, Notes held by the Company or
a Subsidiary of the Company shall not be deemed to be outstanding for purposes
of Section 3.07(a) hereof.

 

If a Note is
replaced pursuant to Section 2.07 hereof, it ceases to be
outstanding.

 

If the
principal amount of any Note is considered paid under Section 4.01
hereof, it ceases to be outstanding and interest on it ceases to accrue.

 

If the Paying
Agent (other than the Company, a Subsidiary or an Affiliate of any thereof)
holds, on a redemption date or maturity date, money sufficient to pay Notes
payable on that date, then on and after that date such Notes will be deemed to
be no longer outstanding and will cease to accrue interest.

 

Section 2.09                                Treasury
Notes.  In determining whether the
Holders of the required principal amount of Notes have concurred in any
direction, waiver or consent, Notes owned by the Company or any Guarantor, or
by any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company or any Guarantor, will be
considered as though not outstanding, except that for the purposes of
determining whether the Trustee will be protected in relying on any such
direction, waiver or consent, only Notes that a Responsible Officer of the
Trustee actually knows are so owned will be so disregarded.

 

Section 2.10                                Temporary
Notes.  Until certificates
representing Notes are ready for delivery, the Company may prepare and the
Trustee, upon receipt of an Authentication Order, will authenticate temporary
Notes.  Temporary Notes will be
substantially in the form of Certificated Notes but may have variations that
the Company considers appropriate for temporary Notes and as may be reasonably
acceptable to the Trustee.  Without
unreasonable delay, the Company will prepare and the Trustee will authenticate
Certificated Notes in exchange for temporary Notes.

 

Holders of
temporary Notes will be entitled to all of the benefits of this Indenture.

 

Section 2.11                                Cancellation.  The Company at any time may deliver Notes to
the Trustee for cancellation.  The
Registrar and Paying Agent will forward to the Trustee any Notes surrendered to
them for registration of transfer, exchange or payment The Trustee and no one

 

33

 

else will cancel
all Notes surrendered for registration of transfer, exchange, payment,
replacement or cancellation and will dispose of such canceled Notes (subject to
the record retention requirement of the Exchange Act in its customary
manner).  Certification of the
destruction of all canceled Notes will be delivered to the Company upon its
request therefor.  The Company may not
issue new Notes to replace Notes that it has paid or that have been delivered
to the Trustee for cancellation.

 

Section 2.12                                Defaulted
Interest.  If the Company defaults in
a payment of interest on the Notes, it will pay the defaulted interest in any
lawful manner plus, to the extent lawful, interest payable on the defaulted
interest, to the Persons who are Holders on a subsequent special record date,
in each case at the rate provided in the Notes and in Section 4.01
hereof.  The Company will notify the
Trustee in writing of the amount of defaulted interest proposed to be paid on
each Note and the date of the proposed payment. 
The Company will fix or cause to be fixed each such special record date
and payment date, provided that no such special record date may be less
than 10 days prior to the related payment date for such defaulted
interest.  At least 15 days before the
special record date, the Company (or, upon the written request of the Company,
the Trustee in the name and at the expense of the Company) will mail or cause
to be mailed to Holders a notice that states the special record date, the
related payment date and the amount of such interest to be paid.

 

Section 2.13                                CUSIP
Numbers.  The Company in issuing the
Securities may use “CUSIP” numbers (if then generally in use), and, if so, the
Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to
Holders; provided that any such notice may state that no representation
is made as to the correctness of such numbers either as printed on the
Securities or as contained in any notice of a redemption and that reliance may
be placed only on the other identification numbers printed on the Securities,
and any such redemption shall not be affected by any defect in or omission of
such numbers.  The Company will promptly
notify the Trustee in writing of any change in the “CUSIP” numbers.

 

ARTICLE 3

 

REDEMPTION AND PREPAYMENT

 

For purposes of this series
of Securities (as defined in the Base Indenture), this Article 3 hereby
amends and restates in its entirety Article Eleven of the Base Indenture.

 

Section 3.01                                Notices
to Trustee.  If the Company elects to
redeem Notes pursuant to the optional redemption provisions of Section 3.07
hereof, it must furnish to the Trustee, at least 30 days but not more than 60
days before a redemption date, an Officers’ Certificate setting forth:

 

(1)                                  the
clause of this Indenture pursuant to which the redemption shall occur;

 

(2)                                  the
redemption date;

 

(3)                                  the
principal amount of Notes to be redeemed;

 

(4)                                  the
redemption price; and

 

34

 

(5)                                  applicable
CUSIP numbers.

 

Section 3.02                                Selection
of Notes to Be Redeemed or Purchased. 
If less than all of the Notes are to be redeemed or purchased in an
offer to purchase at any time, the Trustee will select Notes for redemption or
purchase as follows:

 

(1)                                  if
the Notes are listed on any national securities exchange, in compliance with
the requirements of the principal national securities exchange on which the
Notes are listed; or

 

(2)                                  if
the Notes are not listed on any national securities exchange, on a pro rata basis, by lot or by such method as
the Trustee shall deem fair and appropriate.

 

In the event
of partial redemption or purchase by lot, the particular Notes to be redeemed
or purchased will be selected, unless otherwise provided herein, not less than
30 nor more than 60 days prior to the redemption or purchase date by the
Trustee from the outstanding Notes not previously called for redemption or
purchase.

 

The Trustee
will promptly notify the Company in writing of the Notes selected for
redemption or purchase and, in the case of any Note selected for partial
redemption or purchase, the principal amount thereof to be redeemed or
purchased.  Notes and portions of Notes
selected will be in amounts of $1,000 or whole multiples of $1,000; except that
if all of the Notes of a Holder are to be redeemed or purchased, the entire
outstanding amount of Notes held by such Holder, even if not a multiple of
$1,000, shall be redeemed or purchased. 
Except as provided in the preceding sentence, provisions of this
Indenture that apply to Notes called for redemption or purchase also apply to
portions of Notes called for redemption or purchase.

 

Section 3.03                                Notice
of Redemption.  Subject to the
provisions of Section 3.09 hereof, at least 30 days but not more
than 60 days before a redemption date, the Company will mail or cause to be
mailed, by first class mail, a notice of redemption to each Holder whose Notes
are to be redeemed at its registered address, except that redemption notices
may be mailed more than 60 days prior to a redemption date if the notice is
issued in connection with a defeasance of the Notes or a satisfaction and
discharge of this Indenture pursuant to Articles 8 or 12 of this
Indenture.

 

The notice
will identify the Notes to be redeemed and will state:

 

(1)                                  the
redemption date;

 

(2)                                  the
redemption price;

 

(3)                                  if
any Note is being redeemed in part, the portion of the principal amount of such
Note to be redeemed and that, after the redemption date upon surrender of such
Note, a new Note or Notes in principal amount equal to the unredeemed portion
will be issued upon cancellation of the original Note;

 

(4)                                  the
name and address of the Paying Agent;

 

35

 

(5)                                  that
Notes called for redemption must be surrendered to the Paying Agent to collect
the redemption price;

 

(6)                                  that,
unless the Company defaults in making such redemption payment, interest on
Notes called for redemption ceases to accrue on and after the redemption date;

 

(7)                                  the
paragraph of the Notes and/or Section of this Indenture pursuant to which
the Notes called for redemption are being redeemed; and

 

(8)                                  that
no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on the Notes.

 

At the Company’s
request, the Trustee will give the notice of redemption in the Company’s name
and at its expense; provided, however, that the Company has
delivered to the Trustee, at least 45 days prior to the redemption date, an
Officers’ Certificate requesting that the Trustee give such notice and setting
forth the information to be stated in such notice as provided in the preceding
paragraph.

 

Section 3.04                                Effect
of Notice of Redemption.  Once notice
of redemption is mailed in accordance with Section 3.03 hereof,
Notes called for redemption become irrevocably due and payable on the
redemption date at the redemption price. 
A notice of redemption may not be conditional.

 

Section 3.05                                Deposit
of Redemption or Purchase Price.  One
Business Day prior to the redemption or purchase date, the Company will deposit
with the Trustee or with the Paying Agent money sufficient to pay the
redemption or purchase price of and accrued interest, if any, on all Notes to
be redeemed or purchased on that date. 
The Trustee or the Paying Agent will promptly return to the Company any
money deposited with the Trustee or the Paying Agent by the Company in excess
of the amounts necessary to pay the redemption or purchase price of, and
accrued interest, if any, on, all Notes to be redeemed or purchased.

 

If the Company
complies with the provisions of the preceding paragraph, on and after the
redemption or purchase date, interest will cease to accrue on the Notes or the
portions of Notes called for redemption or purchase.  If a Note is redeemed or purchased on or
after an interest record date but on or prior to the related interest payment
date, then any accrued and unpaid interest shall be paid to the Person in whose
name such Note was registered at the close of business on such record
date.  If any Note called for redemption
or purchase is not so paid upon surrender for redemption or purchase because of
the failure of the Company to comply with the preceding paragraph, interest
shall be paid on the unpaid principal, from the redemption or purchase date
until such principal is paid, and to the extent lawful on any interest not paid
on such unpaid principal, in each case at the rate provided in the Notes and in
Section 4.01 hereof.

 

Section 3.06                                Notes
Redeemed or Purchased in Part.  Upon
surrender of a Note that is redeemed or purchased in part, the Company will
issue and, upon receipt of an Authentication Order, the Trustee will
authenticate for the Holder at the expense of the Company a new Note equal in
principal amount to the unredeemed or unpurchased portion of the Note
surrendered.

 

36

 

Section 3.07                                Optional
Redemption.

 

(a)                                  At
any time prior to February 1, 2011, the Company may redeem the Notes
issued under this Indenture for cash at its option, in whole or in part, at any
time or from time to time, upon not less than 30 days’ nor more than 60 days’
notice to each Holder, at a redemption price equal to the greater of:

 

(1)                                  100%
of the principal amount of the Notes being redeemed and

 

(2)                                  the
sum of the present values of 103.313% of the principal amount of the Notes
being redeemed and scheduled payments of interest on such Notes to but not
including February 1, 2011 discounted to the date of redemption on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Treasury Rate plus 50 basis points,

 

together with
accrued and unpaid interest, if any, to but not including the date of
redemption.

 

(b)                                 At
any time prior to February 1, 2009, the Company may on any one or more
occasions redeem up to 35% of the aggregate principal amount of Notes issued
under this Indenture (including any Additional Notes issued after the date
hereof) at a redemption price of 106.625% of the principal amount thereof, plus
accrued and unpaid interest, if any, to, but excluding, the redemption date,
with the net cash proceeds of one or more Equity Offerings; provided
that:

 

(1)                                  at
least 65% of the aggregate principal amount of Notes originally issued under
this Indenture (excluding Notes held by the Company and its Subsidiaries)
remains outstanding immediately after the occurrence of such redemption; and

 

(2)                                  the
redemption occurs within 120 days of the date of the closing of such Equity
Offering.

 

Except
pursuant to the preceding two paragraphs, the Notes will not be redeemable at
the Company’s option prior to February 1, 2011.

 

(c)                                  On
or after February 1, 2011, the Company may redeem all or a part of the Notes
upon not less than 30 nor more than 60 days’ notice, at the redemption prices
(expressed as percentages of principal amount) set forth below plus accrued and
unpaid interest, if any, on the Notes redeemed, to, but excluding, the
applicable redemption date, if redeemed during the twelve-month period
beginning on February 1 of the years indicated below, subject to the
rights of Holders on the relevant record date to receive interest on the
relevant interest payment date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2011

  	
   

  	
  103.313

  	
  %

  
	
  2012

  	
   

  	
  102.209

  	
  %

  
	
  2013

  	
   

  	
  101.105

  	
  %

  
	
  2014 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

Unless the Company defaults
in the payment of the redemption price, interest will cease to accrue on the
Notes or portions thereof called for redemption on the applicable redemption
date.

 

37

 

(d)                                 Any
redemption pursuant to this Section 3.07 shall be made pursuant to
the provisions of Section 3.01 through 3.06 hereof.

 

Section 3.08                                Mandatory
Redemption.  The Company is not
required to make mandatory redemption or sinking fund payments with respect to
the Notes.

 

Section 3.09                                Offer
to Purchase by Application of Excess Proceeds.  In the event that, pursuant to Section 4.10
hereof, the Company is required to commence an offer to all Holders to purchase
Notes (an “Asset Sale Offer”), it will follow the procedures specified
below.

 

The Asset Sale
Offer shall be made to all Holders and all holders of other Indebtedness pari
passu with the Notes containing
provisions similar to those set forth in this Indenture with respect to offers
to purchase or redeem with the proceeds of sales of assets.  The Asset Sale Offer will remain open for a
period of at least 20 Business Days following its commencement and not more
than 30 Business Days, except to the extent that a longer period is required by
applicable law (the “Offer Period”). 
No later than three Business Days after the termination of the Offer
Period (the “Purchase Date”), the Company will apply all Excess Proceeds
(the “Offer Amount”) to (i) first to purchase or redeem the maximum
principal amount of Notes and such other Indebtedness pari  passu
with the Notes and (ii) second, if any Excess Proceeds remain following
such purchase or redemption, to purchase or redeem the maximum principal amount
of Senior Subordinated Notes and such other Indebtedness pari  passu
with the Senior Subordinated Notes. 
Payment for any Notes so purchased will be made in the same manner as
interest payments are made.

 

If any Excess
Proceeds remain after consummation of an Asset Sale Offer, the Company may use
those Excess Proceeds for any purpose not otherwise prohibited by this
Indenture.  If the aggregate principal
amount of Notes and other Indebtedness pari  passu with the Notes
tendered in such Asset Sale Offer exceeds the amount of Excess Proceeds, the
Trustee will select the Notes and such other Indebtedness pari  passu
with the Notes to be purchased on a pro  rata basis.  If the aggregate principal amount of Senior
Subordinated Notes and other Indebtedness pari  passu with the
Senior Subordinated Notes tendered into such Asset Sale Offer exceeds the
amount of Excess Proceeds following the purchase in full of all of the Notes
and other Indebtedness pari  passu with the Notes, the Trustee
will select the Senior Subordinated Notes and such other Indebtedness pari
passu with the Senior Subordinated Notes to be purchased on a pro
rata basis. Upon completion of each Asset Sale Offer, the amount of
Excess Proceeds will be reset at zero.

 

If the
Purchase Date is on or after an interest record date and on or before the
related interest payment date, any accrued and unpaid interest, if any, will be
paid to the Person in whose name a Note is registered at the close of business
on such record date, and no additional interest will be payable to Holders who
tender Notes pursuant to the Asset Sale Offer.

 

Upon the
commencement of an Asset Sale Offer, the Company will send, by first class
mail, a notice to the Trustee and each of the Holders, with a copy to the
Trustee.  The notice will contain all
instructions and materials necessary to enable such Holders to tender Notes
pursuant to the Asset Sale Offer.  The
notice, which will govern the terms of the Asset Sale Offer, will state:

 

38

 

(1)                                  that
the Asset Sale Offer is being made pursuant to this Section 3.09
and Section 4.10 hereof and the length of time the Asset Sale Offer
will remain open;

 

(2)                                  the
Offer Amount, the purchase price and the Purchase Date;

 

(3)                                  that
any Note not tendered or accepted for payment will continue to accrue interest;

 

(4)                                  that,
unless the Company defaults in making such payment, any Note accepted for
payment pursuant to the Asset Sale Offer will cease to accrue interest after
the Purchase Date;

 

(5)                                  that
Holders electing to have a Note purchased pursuant to an Asset Sale Offer may
elect to have Notes purchased in integral multiples of $1,000 only;

 

(6)                                  that
Holders electing to have Notes purchased pursuant to any Asset Sale Offer will
be required to surrender the Note, with the form entitled “Option of Holder to
Elect Purchase” attached to the Notes completed, or transfer by book-entry
transfer, to the Company, a Depositary, if appointed by the Company, or a
Paying Agent at the address specified in the notice at least three days before
the Purchase Date;

 

(7)                                  that
Holders will be entitled to withdraw their election if the Company, the
Depositary or the Paying Agent, as the case may be, receives, not later than
the expiration of the Offer Period, a telegram, telex, facsimile transmission
or letter setting forth the name of the Holder, the principal amount of the
Note the Holder delivered for purchase and a statement that such Holder is
withdrawing his election to have such Note purchased;

 

(8)                                  that,
if the aggregate principal amount of Notes and other pari  passu Indebtedness surrendered by holders thereof exceeds the
Offer Amount, the Company will select the Notes and other pari  passu
Indebtedness to be purchased on a pro rata
basis based on the principal amount of Notes and such other pari  passu Indebtedness surrendered (with such adjustments as may be
deemed appropriate by the Company so that only Notes in denominations of
$1,000, or integral multiples thereof, will be purchased); and

 

(9)                                  that
Holders whose Notes were purchased only in part will be issued new Notes equal
in principal amount to the unpurchased portion of the Notes surrendered (or
transferred by book-entry transfer).

 

On or before
the Purchase Date, the Company will, to the extent lawful, accept for payment,
on a pro rata basis to the extent
necessary, the Offer Amount of Notes or portions thereof tendered pursuant to
the Asset Sale Offer, or if less than the Offer Amount has been tendered, all
Notes tendered, and will deliver or cause to be delivered to the Trustee the
Notes properly accepted together with an Officers’ Certificate stating that
such Notes or portions thereof were accepted for payment by the Company in
accordance with the terms of this Section 3.09.  The Company, the Depositary or the Paying
Agent, as the case may be, will promptly (but in any case not later than seven
days after the Purchase Date) mail or deliver to

 

39

 

each tendering Holder an amount equal to the purchase price of the
Notes tendered by such Holder and accepted by the Company for purchase, and the
Company, will promptly issue a new Note, and the Trustee, upon written request
from the Company will authenticate and mail or deliver (or cause to be
transferred by book entry) such new Note to such Holder, in a principal amount
equal to any unpurchased portion of the Note surrendered.  Any Note not so accepted shall be promptly
mailed or delivered by the Company to the Holder thereof.  The Company will publicly announce the
results of the Asset Sale Offer on the Purchase Date.

 

Other than as
specifically provided in this Section 3.09, any purchase pursuant
to this Section 3.09 shall be made pursuant to the provisions of Sections
3.01 through 3.06 hereof

 

ARTICLE 4

 

COVENANTS

 

For purposes of this series
of Securities (as defined in the Base Indenture), this Article 4 hereby
amends and restates in its entirety Article Ten of the Base Indenture.

 

Section 4.01                                Payment
of Notes.  The Company will pay or
cause to be paid the principal of, premium, if any, and interest on the Notes
on the dates and in the manner provided in the Notes.  Principal, premium, if any, and interest will
be considered paid on the date due if the Paying Agent, if other than the
Company or a Subsidiary thereof, holds as of 10:00 a.m. Eastern Time on
the due date money deposited by the Company in immediately available funds and
designated for and sufficient to pay all principal, premium, if any, and
interest then due.

 

The Company
will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to 1% per annum in
excess of the then applicable interest rate on the Notes to the extent lawful;
it will pay interest (including post-petition interest in any proceeding under
any Bankruptcy Law) on overdue installments of interest (without regard to any
applicable grace period) at the same rate to the extent lawful.

 

Section 4.02                                Maintenance
of Office or Agency.  The Company
will maintain in the Borough of Manhattan, the City of New York, an office or
agency (which may be an office of the Trustee or an affiliate of the Trustee,
Registrar or co-registrar) where Notes may be surrendered for registration of
transfer or for exchange and where notices and demands to or upon the Company
in respect of the Notes and this Indenture may be served.  The Company will give prompt written notice
to the Trustee of the location, and any change in the location, of such office
or agency.  If at any time the Company
fails to maintain any such required office or agency or fails to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee.

 

The Company
may also from time to time designate one or more other offices or agencies
where the Notes may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations; provided, however,
that no such designation or rescission will in any manner relieve the Company
of its obligation to maintain an office or agency in the Borough of Manhattan,
the City of New York for such purposes. 
The Company will give prompt

 

40

 

written notice to the Trustee of any such designation or rescission and
of any change in the location of any such other office or agency.

 

The Company
hereby designates the Corporate Trust Office of the Trustee as one such office
or agency of the Company in accordance with Section 2.03 hereof.

 

Section 4.03                                Reports.  (a)  Whether or not required by the SEC’s
rules and regulations, so long as any Notes are outstanding, the Company
will file with the SEC and provide to the Trustee, within one Business Day of
the time periods specified in the SEC’s rules and regulations:

 

(1)                                  all
quarterly and annual reports that would be required to be filed with the SEC on
Forms 10-Q and 10-K if the Company were required to file such reports; and

 

(2)                                  all
current reports that would be required to be filed with the SEC on Form 8-K
if the Company were required to file such reports.

 

All such reports will be
prepared in all material respects in accordance with the rules and
regulations applicable to such reports. 
Each annual report on Form 10-K will include a report on the
Company’s consolidated financial statements by the Company’s certified
independent accountants.  In addition,
the Company will file a copy of each of the reports referred to in clauses (1) and
(2) above with the SEC for public availability within the time
periods specified in the rules and regulations applicable to such reports
(unless the SEC will not accept such a filing) and will post the reports on its
website within the time periods specified in this Indenture.  Delivery of such reports, information and
documents to the Trustee is for informational purposes only and the Trustee’s
receipt of such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including
the Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates).

 

(b)                                 If
the Company has designated any of its Subsidiaries as Unrestricted
Subsidiaries, then the quarterly and annual financial information required by
the preceding paragraph will include a presentation, either on the face of the
financial statements or in the footnotes thereto, and in Management’s
Discussion and Analysis of Financial Condition and Results of Operations, of
the financial condition and results of operations of the Company and its
Restricted Subsidiaries separate from the financial condition and results of
operations of the Unrestricted Subsidiaries of the Company.

 

(c)                                  If,
at any time, the Company is no longer subject to the periodic reporting
requirements of the Exchange Act for any reason, the Company will nevertheless
continue filing the reports specified in the preceding paragraph with the SEC
within the time periods specified above unless the SEC will not accept such a
filing.  The Company agrees that it will
not take any action for the purpose of causing the SEC not to accept any such
filings.  If, notwithstanding the
foregoing, the SEC will not accept the Company’s filings for any reason, the
Company will post the reports referred to in Section 4.03(a) on
its website within the time periods that would apply if the Company were
required to file those reports with the SEC.

 

41

 

(d)                                 In
addition, the Company and the Guarantors agree that, for so long as any Notes
remain outstanding, at any time they are not required to file the reports
required by the preceding paragraphs with the SEC, they will furnish to the
Holders and to securities analysts and prospective investors, upon their
request, the information required to be delivered pursuant to Rule 144A(d)(4) under
the Securities Act.

 

Section 4.04                                Compliance
Certificate.  (a)  The Company
and each Guarantor (to the extent that such Guarantor is so required under the
TIA) shall deliver to the Trustee, within 90 days after the end of each fiscal
year, an Officers’ Certificate stating that a review of the activities of the
Company and its Subsidiaries during the preceding fiscal year has been made
under the supervision of the signing Officers with a view to determining
whether the Company has kept, observed, performed and fulfilled its obligations
under this Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his or her knowledge the Company has kept,
observed, performed and fulfilled each and every covenant contained in this
Indenture and is not in default in the performance or observance of any of the
terms, provisions and conditions of this Indenture (or, if a Default or Event
of Default has occurred, describing all such Defaults or Events of Default of
which he or she may have knowledge and what action the Company is taking or
proposes to take with respect thereto).

 

(b)                                 So
long as any of the Notes are outstanding, the Company will deliver to the
Trustee, forthwith upon any Officer becoming aware of any Default or Event of
Default, an Officers’ Certificate specifying such Default or Event of Default
and what action the Company is taking or proposes to take with respect thereto.

 

Section 4.05                                Taxes.  The Company will pay, and will cause each of
its Subsidiaries to pay, prior to delinquency, all material taxes, assessments,
and governmental levies except such as are contested in good faith and by
appropriate proceedings or where the failure to effect such payment is not
adverse in any material respect to the Holders of the Notes.

 

Section 4.06                                Stay,
Extension and Usury Laws.  The
Company and each of the Guarantors (to the extent that it may lawfully do so)
covenants that it will not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay, extension or
usury law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture; and the Company and
each of the Guarantors (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that
it will not, by resort to any such law, hinder, delay or impede the execution
of any power herein granted to the Trustee, but will suffer and permit the
execution of every such power though no such law has been enacted.

 

Section 4.07                                Restricted
Payments.  (a)  The Company will
not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly:

 

(1)                                  declare
or pay any dividend or make any other payment or distribution on account of the
Company’s or any of its Restricted Subsidiaries’ Equity Interests (including,
without limitation, any payment in connection with any merger or consolidation
involving the Company or any of its Restricted Subsidiaries) or to the direct
or indirect holders of the Company’s or any of its Restricted Subsidiaries’
Equity

 

42

 

Interests in their capacity as such (other than
dividends or distributions payable in Equity Interests (other than Disqualified
Stock) of the Company and other than dividends or distributions payable to the
Company or a Restricted Subsidiary of the Company);

 

(2)                                  purchase,
redeem or otherwise acquire or retire for value (including, without limitation,
in connection with any merger or consolidation involving the Company) any
Equity Interests of the Company or any direct or indirect parent of the
Company;

 

(3)                                  make
any payment on or with respect to, or purchase, redeem, defease or otherwise
acquire or retire for value any Subordinated Indebtedness (including the Senior
Subordinated Notes) of the Company or any Guarantor (excluding any intercompany
Indebtedness between or among the Company and any of its Restricted
Subsidiaries), except a payment of interest or principal at the Stated Maturity
thereof; or

 

(4)                                  make
any Restricted Investment

 

(all such payments
and other actions set forth in these clauses (1) through (4) above
being collectively referred to as “Restricted Payments”), unless, at the
time, of and after giving effect to such Restricted Payment:

 

(1)                                  no
Default or Event of Default has occurred and is continuing or would occur as a
consequence of such Restricted Payment;

 

(2)                                  the
Company would, at the time of such Restricted Payment and after giving pro forma effect thereto as if such Restricted
Payment had been made at the beginning of the applicable four-quarter period,
have been permitted to incur at least $1.00 of additional Indebtedness pursuant
to the Fixed Charge Coverage Ratio test set forth in the first paragraph of Section 4.09
hereof; and

 

(3)                                  such
Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by the Company and its Restricted Subsidiaries since October 1,
2003 (excluding Restricted Payments permitted by clauses (2), (3),
(4), (6), (7), (8), (9), (10), (11),
(12), (13) and (14) of paragraph (b) below),
is less than the sum, without duplication, of:

 

(A)                              50%
of the Consolidated Net Income of the Company for the period (taken as one
accounting period) from October 1, 2003 to the end of the Company’s most
recently ended fiscal quarter for which internal financial statements are
available at the time of such Restricted Payment (or, if such Consolidated Net
Income for such period is a deficit, less 100% of such deficit), plus

 

(B)                                100%
of the aggregate net cash proceeds received by the Company since the October 1,
2003 as a contribution to its common equity capital or from the issue or sale
of Equity Interests of the Company including the payment of the exercise price
of options and warrants (other than Disqualified Stock) or from the issue or
sale of convertible or exchangeable Disqualified Stock or convertible or

 

43

 

exchangeable debt securities of the Company that have
been converted into or exchanged for such Equity Interests (other than Equity
Interests (or Disqualified Stock or debt securities) sold to a Subsidiary of
the Company); plus

 

(C)                                to
the extent that any Restricted Investment that was made after the date hereof
is sold for cash or otherwise liquidated or repaid for cash, the greater of (i) the
cash return of capital with respect to such Restricted Investment (less the
cost of disposition, if any) and (ii) the initial amount of such
Restricted Investment; plus

 

(D)                               to
the extent that any Unrestricted Subsidiary of the Company designated as such
after the date hereof is redesignated as a Restricted Subsidiary after the date
hereof, the greater of (i) the Fair Market Value of the Company’s
Investment in such Subsidiary as of the date of such redesignation or (ii) such
Fair Market Value as of the date on which such Subsidiary was originally
designated as an Unrestricted Subsidiary after the date hereof; plus

 

(E)                                 50%
of any dividends received by the Company or a Restricted Subsidiary of the
Company that is a Guarantor after the date hereof from an Unrestricted
Subsidiary of the Company, to the extent that such dividends were not otherwise
included in Consolidated Net Income of the Company for such period.

 

(b)                                 So
long as no Default has occurred and is continuing or would be caused thereby,
the preceding provisions of Section 4.07(a) will not prohibit:

 

(1)                                  the
payment of any dividend within 60 days after the date of declaration of the
dividend, if at the date of declaration the dividend payment would have
complied with the provisions of this Indenture;

 

(2)                                  the
making of any Restricted Payment in exchange for, or out of the net cash
proceeds of the substantially concurrent sale (other than to a Subsidiary of
the Company) of, Equity Interests of the Company (other than Disqualified
Stock) or from the substantially concurrent contribution of common equity
capital to the Company, provided that the amount of any such net cash
proceeds that are utilized for any such Restricted Payment will be excluded
from clause (3)(B) of the preceding paragraph;

 

(3)                                  the
defeasance, redemption, repurchase or other acquisition of Indebtedness of the
Company or any Guarantor that is contractually subordinated to the Notes or to
any Subsidiary Guarantee with the net cash proceeds from a substantially
concurrent incurrence of Permitted Refinancing Indebtedness;

 

(4)                                  the
payment of any dividend (or, in the case of any partnership or limited
liability company, any similar distribution) by a Restricted Subsidiary of the
Company to the holders of its Equity Interests on a pro rata basis;

 

(5)                                  the
repurchase, redemption or other acquisition or retirement for value of any
Equity Interests of the Company or any Restricted Subsidiary of the Company
held

 

44

 

by any current or former officer, director, employee
or consultant of the Company or any Restricted Subsidiary (or any permitted
transferees of such persons) of the Company pursuant to any equity subscription
agreement, stock option agreement, shareholders’ agreement or similar
agreement; provided that the aggregate price paid for all such
repurchased, redeemed, acquired or retired Equity Interests may not exceed $5.0
million in any twelve-month period, provided, that the Company may carry
forward and make in a subsequent twelve-month period, in addition to the
amounts permitted for such twelve-month period, the amount of such repurchase,
redemptions or other acquisitions or retirements for value permitted to have
been made but not made in any preceding twelve-month period up to a maximum of
$10.0 million in any twelve-month period;

 

(6)                                  the
repurchase of Equity Interests deemed to occur upon the exercise of stock
options to the extent such Equity Interests represent a portion of the exercise
price of those stock options;

 

(7)                                  the
declaration and payment of regularly scheduled or accrued dividends to holders
of any class or series of Disqualified Stock of the Company or any Restricted
Subsidiary of the Company issued on or after the date of this Indenture in
accordance with the Fixed Charge Coverage Ratio test described in Section 4.09
hereof;

 

(8)                                  make
cash payments in lieu of the issuance of fractional shares in an aggregate
amount not to exceed $10.0 million in any twelve-month period;

 

(9)                                  the
repayment of intercompany debt, the incurrence of which was permitted pursuant
to Section 4.09 hereof;

 

(10)                            payments
made in connection with the ESSI Merger;

 

(11)                            satisfaction
of change of control obligations on subordinated obligations once the Company
has fulfilled its obligations relating to a Change of Control under this
Indenture;

 

(12)                            payments
made in satisfaction of an Asset Sale Offer with respect to the Senior
Subordinated Notes or the 2013 Senior Subordinated Notes;

 

(13)                            any
distributions (whether direct or indirect and whether in the form of cash,
property, securities or otherwise) to shareholders, employees or other
permitted distributees under the Company’s 1996 Omnibus Plan and other benefit
or retirement plans maintained and created by the Company, its Restricted
Subsidiaries and its Affiliates; and

 

(14)                            other
Restricted Payments in an aggregate amount not to exceed $50.0 million since
the date of this Indenture.

 

The amount of
all Restricted Payments (other than cash) will be the Fair Market Value on the
date of the Restricted Payment of the asset(s) or securities proposed to be
transferred or issued by the Company or such Restricted Subsidiary, as the case
may be, pursuant to the Restricted Payment. 
The Fair Market Value of any assets or securities (other than cash or
cash

 

45

 

equivalents) that are required to be valued by this Section 4.07
will be determined by the Board of Directors whose resolution with respect
thereto will be delivered to the Trustee. 
The Board of Directors’ determination must be based upon an opinion or
appraisal issued by an accounting, appraisal or investment banking firm of
national standing if the Fair Market Value exceeds $25.0 million.

 

Section 4.08                                Dividend
and Other Payment Restrictions Affecting Subsidiaries.  (a)  The Company will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly, create or
permit to exist or become effective any consensual encumbrance or restriction
on the ability of any Restricted Subsidiary to:

 

(1)                                  pay
dividends or make any other distributions on its Capital Stock to the Company
or any of its Restricted Subsidiaries, or with respect to any other interest or
participation in, or measured by, its profits, or pay any indebtedness owed to
the Company or any of its Restricted Subsidiaries;

 

(2)                                  make
loans or advances to the Company or any of its Restricted Subsidiaries; or

 

(3)                                  sell,
lease or transfer any of its properties or assets to the Company or any of its
Restricted Subsidiaries.

 

(b)                                 The
restrictions in Section 4.08(a) will not apply to encumbrances
or restrictions existing under or by reason of:

 

(1)                                  the
Credit Agreement and related agreements and any amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacements or
refinancings of those agreements; provided that the amendments,
modifications, restatements, renewals, increases, supplements, refundings,
replacements or refinancings are not materially more restrictive, taken as a
whole, with respect to such dividend and other payment restrictions than those
contained in those agreements as of the later of the date thereof or the date
of this Indenture as determined by the Board of Directors of the Company;

 

(2)                                  agreements
governing Existing Indebtedness and Credit Facilities as in effect on the date
of this Indenture and any amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings of those
agreements; provided that the amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or refinancings are
not materially more restrictive, taken as a whole, with respect to such
dividend and other payment restrictions than those contained in those
agreements on the date of this Indenture as determined by the Board of
Directors of the Company;

 

(3)                                  this
Indenture, the indenture governing the Senior Notes, the Senior Notes, the
Notes and the Subsidiary Guarantees;

 

(4)                                  applicable
law, rule, regulation or order, approval, license, permit or similar
restriction;

 

46

 

(5)                                  any
instrument of a Person acquired by the Company or any of its Restricted
Subsidiaries as in effect at the time of such acquisition (except to the extent
if Indebtedness was incurred in connection with or in contemplation of such
acquisition), which encumbrance or restriction is not applicable to any Person,
or the properties or assets of any Person, other than the Person, or the
property or assets of the Person, so acquired; provided that, in the
case of Indebtedness, such Indebtedness was permitted to be incurred by the
terms of this Indenture;

 

(6)                                  customary
non-assignment provisions in contracts, leases and licenses entered into in the
ordinary course of business;

 

(7)                                  purchase
money obligations for property acquired in the ordinary course of business and
Capital Lease Obligations that impose restrictions on the property purchased or
leased of the nature described in clause (3) of Section 4.08(a);

 

(8)                                  any
agreement for the sale or other disposition of a Restricted Subsidiary that restricts
distributions by that Restricted Subsidiary pending the sale or other
disposition;

 

(9)                                  Permitted
Refinancing Indebtedness; provided that the restrictions contained in
the agreements governing such Permitted Refinancing Indebtedness are not
materially more restrictive, taken as a whole, than those contained in the
agreements governing the Indebtedness being refinanced as determined by the
Board of Directors of the Company;

 

(10)                            Liens
permitted to be incurred under the provisions of Section 4.12 hereof
that limit the right of the debtor to dispose of the assets subject to such
Liens;

 

(11)                            provisions
limiting the disposition or distribution of assets or property in joint venture
agreements, asset sale agreements, sale-leaseback agreements, stock sale
agreements and other similar agreements entered into in the ordinary course of
business;

 

(12)                            encumbrances
on property that exist at the time the property was acquired by the Company or
a Restricted Subsidiary;

 

(13)                            restrictions
on cash or other deposits or net worth imposed by customers under contracts
entered into in the ordinary course of business; and

 

(14)                            any
encumbrances or restrictions of the type referred to in clauses (1), (2) or
(3) in the immediately preceding paragraph above imposed by any amendments,
modifications, restatements, renewals, supplements, refundings, replacements or
refinancings of the contracts, instruments or obligations referred to in
clauses (1) through (13) above, provided that such amendments,
modifications, restatements, renewals, supplements, refundings, replacements or
refinancings are, in the good faith judgment of the Board of Directors of the
Company, not materially more restrictive, taken as a whole, with respect to
such encumbrance and other restrictions than those prior to such amendment,
modification, restatement, renewal, supplement, refunding, replacement or
refinancing.

 

47

 

Section 4.09                                Incurrence
of Indebtedness and Issuance of Preferred Stock.  (a)  The Company will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly, create,
incur, issue, assume, guarantee or otherwise become directly or indirectly
liable, contingently or otherwise, with respect to (collectively, “incur”)
any Indebtedness (including Acquired Debt), and the Company will not issue any
Disqualified Stock and will not permit any of its Restricted Subsidiaries to
issue any shares of preferred stock; provided, however, that the
Company may incur Indebtedness (including Acquired Debt) or issue Disqualified
Stock, and the Guarantors may incur Indebtedness or issue preferred stock, if
the Fixed Charge Coverage Ratio for the Company’s most recently ended four full
fiscal quarters for which internal financial statements are available
immediately preceding the date on which such additional Indebtedness is
incurred or such Disqualified Stock or preferred stock is issued would have
been at least 2.0 to 1, determined on a pro
forma basis (including a pro forma
application of the net proceeds therefrom), as if such additional Indebtedness
had been incurred or the Disqualified Stock or preferred stock had been issued,
as the case may be, at the beginning of such four-quarter period.

 

(b)                                 The
provisions of Section 4.09(a) will not prohibit the incurrence
of any of the following items of Indebtedness (collectively, “Permitted Debt”):

 

(1)                                  the
incurrence by the Company and any Guarantor of additional Indebtedness and
letters of credit under Credit Facilities in an aggregate principal amount at
any one time outstanding under this clause (1) (with letters of
credit being deemed to have a principal amount equal to the maximum potential
liability of the Company and its Restricted Subsidiaries thereunder) not to
exceed the greater of (x) $675.0 million and (y) the Maximum Credit Facilities
Cap as of the date of such incurrence, in the case of clauses (x) and (y)(A) less
the aggregate amount of all Net Proceeds of Asset Sales applied by the Company
or any of its Restricted Subsidiaries since the date of this Indenture to repay
any Indebtedness under a term loan under a Credit Facility or to repay any
revolving credit Indebtedness under a Credit Facility and effect a
corresponding commitment reduction thereunder pursuant to Section 4.10
hereof provided that the guarantee by Laurel Technologies Partnership
(d/b/a DRS Laurel Technologies), MSSC Company LP and Canopy Technologies LLC of
additional Indebtedness and letters of credit under Credit Facilities shall be
permitted by this clause (1) in the amount set forth in this Section 4.09(b)(1);

 

(2)                                  the
incurrence by the Company and its Restricted Subsidiaries of the Existing
Indebtedness;

 

(3)                                  the
incurrence by the Company and the Guarantors of Indebtedness represented by the
Senior Subordinated Notes, the Notes and the related Subsidiary Guarantees to
be issued on the date of this Indenture;

 

(4)                                  the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
represented by Capital Lease Obligations, mortgage financings or purchase money
obligations, synthetic leases or the Attributable Debt with respect to sale and
leaseback transactions, in each case, incurred for the purpose of financing all
or any part of the purchase price or cost of design, construction, installation
or improvement of property, plant or equipment used in the business of the
Company or any of its Restricted

 

48

 

Subsidiaries, in an aggregate principal amount,
including all Permitted Refinancing Indebtedness incurred to refund, refinance,
replace, defease or discharge any Indebtedness incurred pursuant to this clause
(4), not to exceed the greater of $75.0 million and 5.0% of Consolidated
Tangible Assets at any time outstanding;

 

(5)                                  the
incurrence by the Company or any of its Restricted Subsidiaries of Permitted
Refinancing Indebtedness in exchange for, or the net proceeds of which are used
to refund, refinance, replace, defease or discharge Indebtedness (other than
intercompany Indebtedness) that was permitted by this Indenture to be incurred
under Section 4.09(a) or clauses (2), (3), (4),
(5), (12) or (13) of this Section 4.09(b);

 

(6)                                  the
incurrence by the Company or any of its Restricted Subsidiaries of intercompany
Indebtedness between or among the Company and any of its Restricted
Subsidiaries; provided, however, that:

 

(A)                              if
the Company or any Guarantor is the obligor on such Indebtedness and the payee
is not the Company or a Guarantor, such Indebtedness must be expressly
subordinated to the prior payment in full in cash of all Obligations then due
with respect to the Notes, in the case of the Company, or the Subsidiary
Guarantee, in the case of a Guarantor, and

 

(B)                                (i) any
subsequent issuance or transfer of Equity Interests that results in any such
Indebtedness being held by a Person other than the Company or a Restricted
Subsidiary of the Company and (ii) any sale or other transfer of any such
Indebtedness to a Person that is not either the Company or a Restricted
Subsidiary of the Company,

 

will be deemed, in each case, to constitute an incurrence of such
Indebtedness by the Company or such Restricted Subsidiary, as the case may be,
that was not permitted by this clause (6);

 

(7)                                  the
issuance by any of the Company’s Restricted Subsidiaries to the Company or to
any of its Restricted Subsidiaries of shares of preferred stock; provided,
however, that:

 

(a)                                  any
subsequent issuance or transfer of Equity Interests that results in any such
preferred stock being held by a Person other than the Company or a Restricted Subsidiary
of the Company; and

 

(b)                                 any
sale or other transfer of any such preferred stock to a Person that is not
either the Company or a Restricted Subsidiary of the Company,

 

will be deemed, in each case, to constitute an issuance of such
preferred stock by such Restricted Subsidiary that was not permitted by this clause
(7);

 

(8)                                  the
incurrence by the Company or any of its Restricted Subsidiaries of Hedging
Obligations in the ordinary course of business;

 

49

 

 

(9)                                  the
guarantee by the Company or any of the Guarantors of Indebtedness of the
Company or a Restricted Subsidiary of the Company that was permitted to be
incurred by another provision of this covenant; provided that if the
Indebtedness being guaranteed is subordinated to or pari  passu with the Notes, then the guarantee shall be subordinated or
pari  passu to the same extent as the Indebtedness guaranteed;

 

(10)                            the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
in respect of workers’ compensation claims, self-insurance obligations, bankers’
acceptances, performance and surety bonds, completion guarantees or similar
arrangements in the ordinary course of business;

 

(11)                            the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument inadvertently drawn against insufficient funds, so
long as such Indebtedness is covered within five Business Days;

 

(12)                            the
incurrence by Foreign Subsidiaries of Indebtedness in an aggregate principal
amount at any time outstanding pursuant to this clause (12), including
all Permitted Refinancing Indebtedness incurred to refund, refinance, defease,
renew, extend or replace Indebtedness incurred pursuant to this clause (12),
not to exceed the greater of (x) $40.0 million and (y) the Foreign Borrowing
Base as of the date of such incurrence, (in the case of (x) and (y), or the
equivalent thereof, measured at the time of each incurrence, in applicable
foreign currency);

 

(13)                            Indebtedness
of a Subsidiary incurred and outstanding on or prior to the date on which such
Subsidiary was acquired by the Company (other than Indebtedness incurred in
contemplation of, or in connection with, the transaction or series of related
transactions pursuant to which such Subsidiary became a Subsidiary of or was
otherwise acquired by the Company); provided, however, that for
any such Indebtedness outstanding at any time under this clause (13), in
excess of $35.0 million, on the date that such Subsidiary is acquired by the
Company, the Company would have been able to incur $1.00 of additional
Indebtedness pursuant Section 4.09(a) hereof after giving
effect to the incurrence of such Indebtedness pursuant to this clause (13);

 

(14)                            Indebtedness
arising from agreements of the Company or a Restricted Subsidiary providing for
indemnification, adjustment of purchase price, earn-out or similar obligations,
in each case, incurred or assumed in connection with the acquisition or
disposition of any businesses or assets of the Company or any Restricted
Subsidiary otherwise permitted in accordance with this Indenture;

 

(15)                            Indebtedness
consisting of existing letters of credit issued prior to the date hereof issued
for the account of (i) Integrated Defense Technologies, Inc. and/or
its Subsidiaries, in an aggregate face amount not to exceed $5.0 million and (ii) ESSI
and/or its Subsidiaries, in an aggregate face amount not to exceed $5.0
million; and

 

(16)                            the
incurrence by the Company or any Restricted Subsidiary of additional
Indebtedness in an aggregate principal amount (or accreted value, as
applicable) at any

 

50

 

time outstanding, including all Permitted Refinancing
Indebtedness incurred to refund, refinance, replace, defense or discharge any
Indebtedness incurred pursuant to this clause (16), not to exceed
$50.0 million.

 

For purposes of determining
compliance with this Section 4.09, in the event that an item of
proposed Indebtedness meets the criteria of more than one of the categories of
Permitted Debt described in clauses (1) through (16) above
or is entitled to be incurred pursuant to Section 4.09(a), the
Company will be permitted to classify such item of Indebtedness on
the date of its incurrence, and will only be required to include the amount and
type of such Indebtedness in one of the above clauses, although the Company may
divide and classify an item of Indebtedness in more than one of the types of Indebtedness,
or later reclassify all or a portion of such item of Indebtedness, in any
manner that complies with this Section 4.09.  Indebtedness under the Credit Agreement
outstanding on the date on which Notes are first issued and authenticated under
this Indenture will initially be deemed to have been incurred on such date in
reliance on the exception provided by clause (1) of the definition
of Permitted Debt.  The accrual of
interest, the accretion or amortization of original issue discount, the payment
of interest on any Indebtedness in the form of additional Indebtedness with the
same terms, and the payment of dividends on Disqualified Stock in the form of
additional shares of the same class of Disqualified Stock will not be deemed to
be an incurrence of Indebtedness or an issuance of Disqualified Stock for
purposes of this Section 4.09; provided, in each such case,
that the amount thereof is included in Fixed Charges of the Company as
accrued.  Notwithstanding any other
provision of this Section 4.09, the maximum amount of Indebtedness
that the Company or any Restricted Subsidiary may incur pursuant to this Section 4.09
shall not be deemed to be exceeded solely as a result of fluctuations in
exchange rates or currency values.

 

The amount of
any Indebtedness outstanding as of any date will be:

 

(1)                                  the
accreted value of the Indebtedness, in the case of any Indebtedness issued with
original issue discount;

 

(2)                                  the
principal amount of the Indebtedness, in the case of any other Indebtedness;
and

 

(3)                                  in
respect of Indebtedness of another Person secured by a Lien on the assets of
the specified Person, the lesser of:

 

(A)                              the
Fair Market Value of such an asset at the date of determination, and

 

(B)                                the
amount of the Indebtedness of the other Person.

 

Section 4.10                                Asset
Sales.  The Company will not, and
will not permit any of its Restricted Subsidiaries to, consummate an Asset Sale
unless:

 

(1)                                  the
Company (or the Restricted Subsidiary, as the case may be) receives
consideration at the time of the Asset Sale at least equal to the Fair Market
Value of the assets or Equity Interests issued or sold or otherwise disposed
of; and

 

51

 

(2)                                  at
least 75% of the consideration received in the Asset Sale by the Company or
such Restricted Subsidiary is in the form of cash or Cash Equivalents, provided
that if the aggregate consideration received in the Asset Sale is less than
$15.0 million, this condition will be satisfied if at least 70% of the
consideration received in the Asset Sale by the Company or such Restricted
Subsidiary is in the form of cash or Cash Equivalents.  For purposes of this provision, each of the
following shall be deemed to be cash:

 

(A)                              any
liabilities of the Company or any Restricted Subsidiary (other than contingent
liabilities and liabilities that are by their terms subordinated to the Notes
or any Subsidiary Guarantee) that are assumed by the transferee of any such
assets and as a result of which the Company or such Restricted Subsidiary is
released from further liability;

 

(B)                                any
securities, notes or other obligations received by the Company or any such
Restricted Subsidiary from such transferee that are, within 120 days, converted
by the Company or such Restricted Subsidiary into cash or Cash Equivalents, to
the extent of the cash or Cash Equivalents received in that conversion;

 

(C)                                any
assets of, or any Capital Stock of, another Permitted Business, if, after
giving effect to any such acquisition of Capital Stock, the Permitted Business
is or becomes a Restricted Subsidiary of the Company;

 

(D)                               any
assets that are not classified as current assets under GAAP and that are used
or useful in a Permitted Business; and

 

(E)                                 any
Designated Non-cash Consideration received by the Company or such Restricted
Subsidiary in such Asset Sale having an aggregate fair market value, taken
together with all other Designated Non-cash Consideration received pursuant to
this clause (e) that is at that time outstanding, not to exceed $25.0
million at the time of the receipt of such Designated Non-cash Consideration,
with the fair market value of each item of Designated Non-cash Consideration
being measured at the time received and without giving effect to subsequent
changes in value.

 

Within 365
days after the receipt of any Net Proceeds from an Asset Sale, the Company (or
the applicable Restricted Subsidiary, as the case may be) may apply an amount
equal to those Net Proceeds at its option:

 

(1)                                  to
repay Indebtedness and other obligations under a Credit Facility and, if the
Indebtedness repaid is revolving credit Indebtedness, to correspondingly reduce
commitments with respect thereto;

 

(2)                                  to
acquire all or substantially all of the assets of, or any Capital Stock of,
another Permitted Business, if, after giving effect to any such acquisition of
Capital Stock, the Permitted Business is or becomes a Restricted Subsidiary of
the Company;

 

52

 

(3)                                  to
make a capital expenditure;

 

(4)                                  to
acquire other assets that are not classified as current assets under GAAP and
that are used or useful in a Permitted Business; or

 

(5)                                  to
repurchase the Notes and to repurchase or repay other Senior Debt containing
provisions similar to those set forth in this Indenture with respect to offers
to purchase or redeem with the proceeds of sales of assets,

 

or enter into a binding
commitment regarding clauses (2), (3) or (4) above,
provided that such binding commitment shall be treated as a permitted
application of Net Proceeds from the date of such commitment until and only
until the earlier of (x) the date on which such acquisition or expenditure is
consummated and (y) the 180th day following the expiration of the
aforementioned 365 day period.  If such
acquisition or expenditure is not consummated on or before such 180th day and
the Company or such Restricted Subsidiary shall not have applied an amount
equal to such Net Proceeds pursuant to clause (1)-(4) of this
paragraph on or before such 180th day, such commitment shall be deemed not to
have been a permitted application of Net Proceeds.

 

Pending the
final application of any such Net Proceeds, the Company may temporarily reduce
revolving credit borrowings or otherwise invest such Net Proceeds in any manner
that is not prohibited by this Indenture.

 

Any Net Proceeds
from Asset Sales that are not applied or invested as provided in the preceding
paragraph will constitute “Excess Proceeds.”  When the aggregate amount of Excess Proceeds
exceeds $25.0 million, the Company will make an Asset Sale Offer to all Holders
of Notes and all holders of other Indebtedness that is pari  passu with the Notes containing provisions similar to those set
forth in this Indenture with respect to offers to purchase or redeem with the
proceeds of sales of assets in accordance with Section 3.09 hereof
to purchase the maximum principal amount of Notes and such other pari  passu
Indebtedness that may be purchased out of the Excess Proceeds.  The offer price in any Asset Sale Offer will
be equal to 100% of principal amount plus accrued and unpaid interest, if any,
to, but excluding, the date of purchase, and will be payable in cash (subject
to the right of Holders to receive interest due on the relevant interest
payment date).  With respect to any Asset
Sale Offer, the Excess Proceeds shall be applied (i) first to purchase or
redeem the maximum principal amount of Notes and such other Indebtedness pari
passu with the Notes (on a pro rata basis, if applicable) and (ii) second,
if any Excess Proceeds remain following such purchase or redemption, to purchase
or redeem the maximum principal amount of Notes and such other Indebtedness pari
passu with the Senior Subordinated Notes.  If any Excess Proceeds remain after
consummation of an Asset Sale Offer, the Company may use such Excess Proceeds
for any purpose not otherwise prohibited by this Indenture.  If the aggregate principal amount of Notes
and other Indebtedness pari  passu with the Notes tendered into
such Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee will
select the Notes and such other Indebtedness pari  passu with the
Notes to be purchased on a pro  rata basis.  If the aggregate principal amount of Senior
Subordinated Notes and other Indebtedness pari  passu with the
Senior Subordinated Notes tendered into such Asset Sale Offer exceeds the
amount of Excess Proceeds following the purchase in full of all of the Notes
and other Indebtedness pari  passu with the Notes, the Trustee
will select the Senior

 

53

 

Subordinated Notes and such other Indebtedness pari  passu
with the Senior Subordinated Notes to be purchased on a pro  rata
basis. Upon completion of each Asset Sale Offer, the amount of Excess Proceeds
shall be reset at zero.

 

The Company
will comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent such laws
and regulations are applicable in connection with each repurchase of Notes
pursuant to an Asset Sale Offer.  To the
extent that the provisions of any securities laws or regulations conflict with
the provisions of Sections 3.09 or 4.10 of this Indenture, the
Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under Section 3.09
or this Section 4.10 by virtue of such compliance.

 

Section 4.11                                Transactions
with Affiliates.  (a)  The
Company will not, and will not permit any of its Restricted Subsidiaries to,
make any payment to, or sell, lease, transfer or otherwise dispose of any of
its properties or assets to, or purchase any property or assets from, or enter
into or make or amend any transaction, contract, agreement, understanding,
loan, advance or guarantee with, or for the benefit of, any Affiliate of the
Company (each an “Affiliate Transaction”), unless:

 

(1)                                  such
Affiliate Transaction is on terms that are not materially less favorable to the
Company or the relevant Restricted Subsidiary, taken as a whole, than those
that would have been obtained in a comparable transaction by the Company or
such Restricted Subsidiary with an unrelated Person; and

 

(2)                                  the
Company delivers to the Trustee:

 

(A)                              with
respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $15.0 million, a
resolution of the Board of Directors set forth in an Officers’ Certificate
certifying that such Affiliate Transaction complies with this Section 4.11(a) and
that such Affiliate Transaction has been approved by a majority of the
disinterested members of the Board of Directors; and

 

(B)                                with
respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $25.0 million, an
opinion as to the fairness to the Company or such Subsidiary of such Affiliate
Transaction from a financial point of view issued by an accounting, appraisal
or investment banking firm of national standing.

 

(b)                                 The
following items will not be deemed to be Affiliate Transactions and, therefore,
will not be subject to the provisions of Section 4.11(a):

 

(1)                                  any
employment agreement, employee benefit plan, officer and director
indemnification agreement, consulting agreement or any similar arrangement
entered into by the Company or any of its Restricted Subsidiaries in the
ordinary course of business;

 

(2)                                  transactions
(including a merger) between or among the Company and/or its Restricted
Subsidiaries;

 

54

 

(3)                                  transactions
with a Person (other than an Unrestricted Subsidiary of the Company) that is an
Affiliate of the Company solely because the Company owns, directly or through a
Restricted Subsidiary, an Equity Interest in such Person;

 

(4)                                  payment
of reasonable directors’ fees;

 

(5)                                  any
issuance of Equity Interests (other than Disqualified Stock) of the Company to
Affiliates of the Company and the granting or performance of registration
rights;

 

(6)                                  Restricted
Payments that do not violate the provisions of Section 4.07 hereof
and Permitted Investments;

 

(7)                                  if
such Affiliate Transaction is with any Person solely in its capacity as a
holder of debt or capital stock of the Company or any of the Company’s
Restricted Subsidiaries where such Person is treated no more favorably than any
other holder of debt or capital stock of the Company or any of the Company’s
Restricted Subsidiaries;

 

(8)                                  the
existence of or the performance by the Company or any of the Company’s
Restricted Subsidiaries with any of its obligations under the terms of any
stockholders or similar agreement entered into in connection with the ESSI
Merger;

 

(9)                                  transactions
effected pursuant to agreements in effect on the date of this Indenture and any
amendment, modification, or replacement to such agreement (so long as the
amendment, modification or replacement is not materially more disadvantageous
to the Holders of the Notes, taken as a whole, as determined by the Board of
Directors of the Company);

 

(10)                            payments
made in fulfillment of the Company’s obligations arising in connection with the
ESSI Merger;

 

(11)                            reasonable
and documented attorney’s fees and expenses paid in consideration for services
rendered; and

 

(12)                            a
transaction or series of transactions involving payments not in excess of $5.0
million made pursuant to contracts, agreements or other arrangements in
existence on the date hereof and consistent with past practice.

 

Section 4.12                                Liens.  The Company will not, and will not permit any
of its Restricted Subsidiaries to, directly or indirectly, create, incur,
assume or suffer to exist any Lien of any kind on any asset now owned or
hereafter acquired, except Permitted Liens, unless:

 

(1)                                  in
the case of Liens securing Indebtedness subordinated to the Notes or any
Guarantee, the Notes and any Guarantees are secured by a Lien on such asset
that is senior in priority to such Liens; or

 

(2)                                  in
all other cases, the Notes or the Guarantees are equally and ratably secured.

 

55

 

Section 4.13                                Business
Activities.  The Company will not,
and will not permit any of its Restricted Subsidiaries to, engage in any
business other than Permitted Businesses, except to such extent as would not be
material to the Company and its Restricted Subsidiaries taken as a whole.

 

Section 4.14                                Corporate
Existence.  Subject to Article 5
hereof, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect:

 

(1)                                  its
corporate existence, and the corporate, partnership or other existence of each
of its Subsidiaries, in accordance with the respective organizational documents
(as the same may be amended from time to time) of the Company or any such
Subsidiary; and

 

(2)                                  the
rights (charter and statutory), licenses and franchises of the Company and its
Subsidiaries; provided, however, that the Company shall not be
required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any of its Subsidiaries, if at least two
Officers of the Company, one of which is the Chief Executive Officer or the
Chief Financial Officer of the Company, shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company
and its Subsidiaries, taken as a whole, and that the loss thereof is not
adverse in any material respect to the Holders of the Notes.

 

Section 4.15                                Offer
to Repurchase Upon Change of Control. 
(a)  If a Change of Control occurs, the Company will make an offer
(a “Change of Control Offer”) to each Holder to repurchase all or any
part (equal to $1,000 or an integral multiple of $1,000) of each Holder’s Notes
at a purchase price equal to 101% of the aggregate principal amount thereof
plus accrued and unpaid interest, if any, on the Notes repurchased, if any, to,
but excluding, the date of purchase, subject to the rights of Noteholders on
the relevant record date to receive interest due on the relevant interest
payment date (the “Change of Control Payment”).  Within 30 days following any Change of
Control, the Company will mail a notice to each Holder describing the
transaction or transactions that constitute the Change of Control and stating:

 

(1)                                  that
the Change of Control Offer is being made pursuant to this Section 4.15
and that all Notes tendered will be accepted for payment;

 

(2)                                  the
purchase price and the purchase date, which shall be no earlier than 30 days
and no later than 60 days from the date such notice is mailed (the “Change
of Control Payment Date”);

 

(3)                                  that
any Note not tendered will continue to accrue interest;

 

(4)                                  that,
unless the Company defaults in the payment of the Change of Control Payment,
all Notes accepted for payment pursuant to the Change of Control Offer will
cease to accrue interest after the Change of Control Payment Date;.

 

(5)                                  that
Holders electing to have any Notes purchased pursuant to a Change of Control
Offer will be required to surrender the Notes, with the form entitled “Option
of Holder to Elect Purchase” attached to the Notes completed, or transfer by
book-entry

 

56

 

transfer, to the Paying Agent at the address specified
in the notice prior to the close of business on the third Business Day
preceding the Change of Control Payment Date;

 

(6)                                  that
Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than the close of business on the second Business Day
preceding the Change of Control Payment Date, a telegram, telex, facsimile
transmission or letter setting forth the name of the Holder, the principal
amount of Notes delivered for purchase, and a statement that such Holder is
withdrawing his election to have the Notes purchased; and

 

(7)                                  that
Holders whose Notes are being purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered,
which unpurchased portion must be equal to $1,000 in principal amount or an
integral multiple thereof.

 

The Company
will comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent those laws
and regulations are applicable in connection with the repurchase of the Notes
as a result of a Change in Control.  To
the extent that the provisions of any securities laws or regulations conflict
with the provisions of Sections 3.09 or 4.15 of this Indenture,
the Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under Section 3.09
or this Section 4.15 by virtue of such compliance.

 

(b)                                 On
the Change of Control Payment Date, the Company will, to the extent lawful:

 

(1)                                  accept
for payment all Notes or portions of Notes properly tendered pursuant to the
Change of Control Offer;

 

(2)                                  deposit
with the Paying Agent an amount equal to the Change of Control Payment in
respect of all Notes or portions of Notes properly tendered; and

 

(3)                                  deliver
or cause to be delivered to the Trustee the Notes so accepted together with an
Officers’ Certificate stating the aggregate principal amount of Notes or
portions of Notes being purchased by the Company.

 

The Paying
Agent will promptly mail to each Holder of Notes properly tendered the Change
of Control Payment for such Notes, and the Trustee will promptly authenticate
and mail (or cause to be transferred by book entry) to each Holder a new Note
equal in principal amount to any unpurchased portion of the Notes surrendered,
if any; provided that each new note will be in a principal amount of
$1,000 or an integral multiple of $1,000.

 

(c)                                  Notwithstanding
anything to the contrary in this Section 4.15, the Company will not
be required to make a Change of Control Offer upon a Change of Control if (1) a
third party makes the Change of Control Offer in the manner, at the times and
otherwise in compliance with the requirements set forth in this Section 4.15
hereof and purchases all Notes properly tendered and not withdrawn under the
Change of Control Offer or (2) notice of redemption has been given
pursuant to Section 3.07 hereof, unless and until there is a
default in payment of the applicable redemption price.

 

57

 

Section 4.16                                Intentionally
Omitted.

 

Section 4.17                                Limitation
on Sale and Leaseback Transactions. 
The Company will not, and will not permit any of its Restricted
Subsidiaries to, enter into any sale and leaseback transaction; provided
that the Company or any Restricted Subsidiary may enter into a sale and
leaseback transaction if:

 

(1)                                  the
Company or that Restricted Subsidiary, as applicable, could have (a) incurred
Indebtedness in an amount equal to the Attributable Debt relating to such sale
and leaseback transaction under Section 4.09  hereof and (b) incurred a Lien to
secure such Indebtedness pursuant to the provisions of Section 4.12
hereof; and

 

(2)                                  the
sale and leaseback transaction is made in compliance with Section 4.10
hereof.

 

Section 4.18                                Payments
for Consent.  The Company will not,
and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, pay or cause to be paid any consideration to or for the benefit of
any Holder of Notes for or as an inducement to any consent, waiver or amendment
of any of the terms or provisions of this Indenture or the Notes unless such
consideration is offered to be paid and is paid to all Holders of the Notes
that consent, waive or agree to amend in the time frame set forth in the
solicitation documents relating to such consent, waiver or agreement.

 

Section 4.19                                Additional
Subsidiary Guarantees.  If the
Company or any of its Restricted Subsidiaries acquires or creates another
Domestic Subsidiary that is a Restricted Subsidiary after the date of this
Indenture, then that newly acquired or created Domestic Subsidiary will become
a Guarantor and execute a supplemental indenture (substantially in the form of Exhibit C
attached hereto) and deliver an Opinion of Counsel reasonably satisfactory to
the Trustee within 45 Business Days of the date on which it was acquired or
created, provided that any Domestic Subsidiary that constitutes an
Immaterial Subsidiary need not become a Guarantor until such time as it ceases
to be an Immaterial Subsidiary, and provided  further that any
Domestic Subsidiary that is not directly or indirectly wholly-owned by the
Company or a Guarantor need not become a Guarantor unless (a) such
Domestic Subsidiary guarantees any other Indebtedness of the Company or a
Restricted Subsidiary or (b) such Domestic Subsidiary, directly or
indirectly, creates, incurs, assumes, guarantees or otherwise becomes directly
or indirectly liable, contingently or otherwise, with respect to any
Indebtedness, other than Indebtedness owed to the Company or a Restricted
Subsidiary.  The form of such Subsidiary
Guarantee is attached as Exhibit B hereto.

 

Section 4.20                                Designation
of Restricted and Unrestricted Subsidiaries.  The Board of Directors may designate any Restricted
Subsidiary to be an Unrestricted Subsidiary if that designation would not cause
a Default.  If a Restricted Subsidiary is
designated as an Unrestricted Subsidiary, the aggregate Fair Market Value of
all outstanding Investments owned by the Company and its Restricted
Subsidiaries in the Subsidiary designated as Unrestricted will be deemed to be
an Investment made as of the time of the designation and will reduce the amount
available for Restricted Payments under Section 4.07 hereof or
under one or more clauses of the definition of Permitted Investments, as
determined by the Company.  That

 

58

 

designation will
only be permitted if the Investment would be permitted at that time and if the
Restricted Subsidiary otherwise meets the definition of an Unrestricted
Subsidiary.  The Board of Directors may
redesignate any Unrestricted Subsidiary to be a Restricted Subsidiary if that
redesignation would not cause a Default.

 

Section 4.21                                Changes
in Covenants when Notes Rated Investment Grade.  If on any date following the date of this
Indenture:

 

(1)                                  the
Notes are rated Baa3 or better by Moody’s and BBB- or better by S&P (or, if
either such entity ceases to rate the Notes for reasons outside of the control
of the Company, the equivalent investment grade credit rating from any other “nationally
recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under
the Exchange Act selected by the Company as a replacement agency); and

 

(2)                                  no
Default or Event of Default shall have occurred and be continuing with respect
to the Notes,

 

then,
beginning on that day and subject to the provisions of the following paragraph,
following sections of this Indenture will be suspended:

 

(A)                              Section 4.10;

 

(B)                                Section 4.07;

 

(C)                                Section 4.09;

 

(D)                               Section 4.08;

 

(E)                                 Section 4.17;

 

(F)                                 Section 4.20;

 

(G)                                Section 4.11;
and

 

(H)                               Section 5.01(4).

 

During
any period that the foregoing sections have been suspended, the Board of
Directors of the Company may not designate any of its Subsidiaries as
Unrestricted Subsidiaries pursuant to Section 4.20 or the second
paragraph of the definition of ‘Unrestricted Subsidiary.”

 

Notwithstanding
the foregoing, if the rating assigned by either such rating agency should
subsequently decline to below Baa3 or BBB-, respectively, the foregoing
covenants will be reinstituted as of and from the date of such rating decline.
Calculations under the reinstated Section 4.07 will be made as if Section 4.07
had been in effect since the date of this Indenture except that no default will
be deemed to have occurred solely by reason of a Restricted Payment made while
that section was suspended.

 

59

 

ARTICLE 5

SUCCESSORS

 

For purposes of this series
of Securities (as defined in the Base Indenture), this Article 5 hereby
amends and restates in its entirety Article Eight of the Base Indenture.

 

Section 5.01                                Merger,
Consolidation, or Sale of Assets. 
The Company may not, directly or indirectly:  (1) consolidate or merge with or into
another Person (whether or not the Company is the surviving corporation); or (2) sell,
assign, transfer, convey or otherwise dispose of all or substantially all of
the properties or assets of the Company and its Restricted Subsidiaries taken
as a whole, in one or more related transactions, to another Person; unless:

 

(1)                                  Either:

 

(A)                              the
Company is the surviving corporation; or

 

(B)                                the
Person formed by or surviving any such consolidation or merger (if other than
the Company) or to which such sale, assignment, transfer, conveyance or other
disposition has been made is a corporation organized or existing under the laws
of the United States, any state of the United States or the District of
Columbia;

 

(2)                                  the
Person formed by or surviving any such consolidation or merger (if other than
the Company) or the Person to which such sale, assignment, transfer, conveyance
or other disposition has been made assumes all the obligations of the Company
under the Notes and this Indenture pursuant to agreements reasonably
satisfactory to the Trustee;

 

(3)                                  immediately
after such transaction, no Default or Event of Default exists; and

 

(4)                                  either

 

(A)                              the
Company, or the Person formed by or surviving any such consolidation or merger
(if other than the Company), or to which such sale, assignment, transfer,
conveyance or other disposition has been made will, on the date of such
transaction after giving pro forma effect
thereto and any related financing transactions as if the same had occurred at
the beginning of the applicable four-quarter period, be permitted to incur at
least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage
Ratio test set forth in Section 4.09(a) hereof, or

 

(B)                                the
Fixed Charge Coverage Ratio for the Company or the Person formed by or
surviving any such consolidation or merger (if other than the Company), or to
which such sale, assignment, transfer, conveyance or other

 

60

 

disposition has been made would be greater than such
Fixed charge Coverage Ratio for the Company and its Restricted Subsidiaries
immediately prior to such transaction.

 

In addition, the Company
will not, directly or indirectly, lease all or substantially all of its
properties or assets, in one or more related transactions, to any other
Person.  This Section 5.01
will not apply to:

 

(1)                                  a
merger of the Company with an Affiliate solely for the purpose of
reincorporating the Company in another jurisdiction;

 

(2)                                  any
merger or consolidation, or any sale, transfer, assignment, conveyance, lease
or other disposition of assets between or among the Company and its Restricted
Subsidiaries that are Guarantors; or

 

(3)                                  the
ESSI Merger.

 

Section 5.02                                Successor
Corporation Substituted.  Upon any
consolidation or merger, or any sale, assignment, transfer, lease, conveyance
or other disposition of all or substantially all of the assets of the Company
in a transaction that is subject to, and that complies with the provisions of, Section 5.01
hereof, the successor corporation formed by such consolidation or into or with
which the Company is merged or to which such sale, assignment, transfer, lease,
conveyance or other disposition is made shall succeed to, and be substituted
for (so that from and after the date of such consolidation, merger, sale,
lease, conveyance or other disposition, the provisions of this Indenture
referring to the “Company” shall refer instead to the successor corporation and
not to the Company), and may exercise every right and power of the Company
under this Indenture with the same effect as if such successor Person had been
named as the Company herein; provided, however, that the
predecessor Company shall not be relieved from the obligation to pay the
principal of and interest on the Notes except in the case of a sale of all of
the Company’s assets in a transaction that is subject to, and that complies
with the provisions of Section 5.01 hereof.

 

ARTICLE 6

DEFAULTS AND REMEDIES

 

For purposes of this series
of Securities (as defined in the Base Indenture), this Article 6 hereby
amends and restates in its entirety Article Five of the Base Indenture.

 

Section 6.01                                Events
of Default.  Each of the following is
an “Event of Default”:

 

(1)                                  default
for 30 days in the payment when due of interest on, the Notes;

 

(2)                                  default
in payment when due of the principal of, or premium, if any, on the Notes;

 

(3)                                  failure
by the Company or any of its Restricted Subsidiaries to comply with the
provisions Sections 4.15 or 5.01 hereof;

 

61

 

(4)                                  failure
by the Company or any of its Restricted Subsidiaries to comply with Sections
4.07 or 4.09 hereof for 30 days after notice to comply with such
provisions;

 

(5)                                  failure
by the Company or any of its Restricted Subsidiaries for 60 days after notice
to comply with any of the other agreements in this Indenture;

 

(6)                                  default
under any mortgage, indenture or instrument under which there may be issued or
by which there may be secured or evidenced any Indebtedness for money borrowed
by the Company or any of its Restricted Subsidiaries (or the payment of which
is guaranteed by the Company or any of its Restricted Subsidiaries) whether
such Indebtedness or guarantee now exists, or is created after the date of this
Indenture, if that default:

 

(A)                              is
caused by a failure to pay principal of, or interest or premium, if any, on
such Indebtedness prior to the expiration of the grace period provided in such
Indebtedness on the date of such default (a “Payment Default”); or

 

(B)                                results
in the acceleration of such Indebtedness prior to its express maturity,

 

and, in each
case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a
Payment Default or the maturity of which has been so accelerated, aggregates
$35.0 million or more;

 

(7)                                  failure
by the Company or any of its Restricted Subsidiaries to pay final judgments
aggregating in excess of $25.0 million (to the extent not covered by
independent third-party insurance as to which the insurer does not dispute
coverage), which judgments are not paid, waived, satisfied, discharged or
stayed for a period of 60 days; or

 

(8)                                  except
as permitted by this Indenture, any Subsidiary Guarantee of a Guarantor that is
a Significant Subsidiary or a group of Guarantors that, taken as a whole, would
constitute a Significant Subsidiary, shall be held in any judicial proceeding
to be unenforceable or invalid or shall cease for any reason to be in full
force and effect or any Guarantor that is a Significant Subsidiary, or any
Person acting on behalf of any Guarantor that is a Significant Subsidiary,
shall deny or disaffirm its obligations under its Subsidiary Guarantee;

 

(9)                                  the
Company or any of its Restricted Subsidiaries that is a Significant Subsidiary
or any of its Restricted Subsidiaries that is a Significant Subsidiary or any
group of Restricted Subsidiaries that, taken together, would constitute a
Significant Subsidiary pursuant to or within the meaning of Bankruptcy Law:

 

(A)                              commences
a voluntary case,

 

(B)                                consents
to the entry of an order for relief against it in an involuntary case,

 

62

 

(C)                                consents
to the appointment of a custodian of it or for all or substantially all of its
property, or

 

(D)                               makes
a general assignment for the benefit of its creditors.

 

(10)                            a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

 

(A)                              is
for relief against the Company or any of its Restricted Subsidiaries that is a
Significant Subsidiary or any group of Restricted Subsidiaries of the Company
that, taken together, would constitute a Significant Subsidiary in an
involuntary case;

 

(B)                                appoints
a custodian of the Company or any of its Restricted Subsidiaries that is a
Significant Subsidiary or any group of Restricted Subsidiaries of the Company
that, taken together, would constitute a Significant Subsidiary or for all or
substantially all of the property of the Company or any of its Restricted
Subsidiaries that is a Significant Subsidiary or any group of Restricted
Subsidiaries of the Company that, taken together, would constitute a
Significant Subsidiary; or

 

(C)                                orders
the liquidation of the Company or any of its Restricted Subsidiaries that is a
Significant Subsidiary or any group of Restricted Subsidiaries of the Company
that, taken together, would constitute a Significant Subsidiary;

 

and the order or decree remains
unstayed and in effect for 60 consecutive days.

 

Section 6.02                                Acceleration.  In the case of an Event of Default specified
in clause (9) or (10) of Section 6.01
hereof, with respect to the Company any Restricted Subsidiary that is a
Significant Subsidiary or any group of Restricted Subsidiaries that, taken
together, would constitute a Significant Subsidiary, all outstanding Notes will
become due and payable immediately without further action or notice.  If any other Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may declare all the Notes to be due and payable
immediately.  Upon any such declaration,
the Notes shall become due and payable immediately.

 

Subject to
certain limitations, the Holders of a majority in principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or
power.  The Trustee may withhold from
Holders of the Notes notice of any continuing Default or Event of Default if it
determines that withholding Notes is in their interest, except a Default or
Event of Default relating to the payment of principal or interest.

 

Section 6.03                                Other
Remedies.  If an Event of Default
occurs and is continuing, the Trustee may pursue any available remedy to
collect the payment of principal and premium, if any, and interest on the Notes
or to enforce the performance of any provision of the Notes or this Indenture.

 

63

 

The Trustee
may maintain a proceeding even if it does not possess any of the Notes or does
not produce any of them in the proceeding. 
A delay or omission by the Trustee or any Holder of a Note in exercising
any right or remedy accruing upon an Event of Default shall not impair the
right or remedy or constitute a waiver of or acquiescence in the Event of
Default.  All remedies are cumulative to
the extent permitted by law.

 

Section 6.04                                Waiver
of Past Defaults.  Holders of not
less than a majority in aggregate principal amount of the then outstanding
Notes so accelerated in accordance with Section 6.02 by notice to
the Trustee may on behalf of the Holders of all of the Notes waive an existing
Default or Event of Default and its consequences hereunder, except a continuing
Default or Event of Default in the payment of the principal of, premium, if
any, or interest on, the Notes (including in connection with an offer to
purchase); provided, however, that the Holders of a majority in
aggregate principal amount of the then outstanding Notes may rescind an
acceleration and its consequences, including any related payment default that
resulted from such acceleration.  Upon
any such waiver, such Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default
or impair any right consequent thereon.

 

Section 6.05                                Control
by Majority.  Holders of a majority
in principal amount of the then outstanding Notes may direct the time, method
and place of conducting any proceeding for exercising any remedy available to
the Trustee or exercising any trust or power conferred on it.  However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture that the Trustee determines
may be prejudicial to the rights of other Holders of Notes or that may involve
the Trustee in personal liability.

 

Section 6.06                                Limitation
on Suits.  A Holder may pursue a
remedy with respect to this Indenture or the Notes only if:

 

(1)                                  such
Holder has previously given the Trustee notice that an Event of Default is
continuing;

 

(2)                                  Holders
of at least 25% in aggregate principal amount of the outstanding Notes have
requested the Trustee to pursue the remedy;

 

(3)                                  such
Holders have offered the Trustee reasonable security or indemnity satisfactory
to it against any loss, liability or expense;

 

(4)                                  the
Trustee has not complied with such request within 60 days after the receipt
thereof and the offer of security or indemnity; and

 

(5)                                  Holders
of a majority in aggregate principal amount of the outstanding Notes have not
given the Trustee a direction inconsistent with such request within such 60-day
period.

 

A Holder of a
Note may not use this Indenture to prejudice the rights of another Holder of a
Note or to obtain a preference or priority over another Holder of a Note.

 

64

 

Section 6.07                                Rights
of Holders of Notes to Receive Payment. 
Notwithstanding any other provision of this Indenture, the right of any
Holder of a Note to receive payment of principal, premium, if any, and interest
on the Note, on or after the respective due dates expressed in the Note
(including in connection with an offer to purchase), or to bring suit for the
enforcement of any such payment on or after such respective dates, shall not be
impaired or affected without the consent of such Holder.

 

Section 6.08                                Collection
Suit by Trustee.  If an Event of
Default specified in Section 6.01(1) or (2) occurs
and is continuing, the Trustee is authorized to recover judgment in its own
name and as Trustee of an express trust against the Company for the whole
amount of principal of, premium, if any, and interest remaining unpaid on the
Notes and interest on overdue principal and, to the extent lawful, interest and
such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

 

Section 6.09                                Trustee
May File Proofs of Claim.  The
Trustee is authorized to file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the Holders
of the Notes allowed in any judicial proceedings relative to the Company (or
any other obligor upon the Notes), its creditors or its property and shall be
entitled and empowered to collect, receive and distribute any money or other
property payable or deliverable on any such claims and any custodian in any
such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee, and in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 7.07 hereof. 
To the extent that the payment of any such compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.07 hereof out of the
estate in any such proceeding, shall be denied for any reason, payment of the
same shall be secured by a Lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other properties that the
Holders may be entitled to receive in such proceeding whether in liquidation or
under any plan of reorganization or arrangement or otherwise.  Nothing herein contained shall be deemed to
authorize the Trustee to authorize or consent to or accept or adopt on behalf
of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder, or to authorize
the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

 

Section 6.10                                Priorities.  If the Trustee collects any money pursuant to
this Article 6, it shall pay out the money in the following order:

 

First:  to the Trustee, its agents and attorneys for
amounts due under Section 7.07 hereof, including payment of all
compensation, reasonable expenses and liabilities incurred, and all advances
made, by the Trustee and the costs and expenses of collection;

 

Second:  to Holders of Notes for amounts due and
unpaid on the Notes for principal, premium, if any, and interest, ratably,
without preference or priority of any

 

65

 

kind,
according to the amounts due and payable on the Notes for principal, premium,
if any and interest, respectively; and

 

Third:  to the Company or to such party as a court of
competent jurisdiction shall direct.

 

The Trustee
may fix a record date and payment date for any payment to Holders of Notes
pursuant to this Section 6.10.

 

Section 6.11                                Undertaking
for Costs.  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 or omitted by it as a Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys’ fees and expenses,
against any party litigant in the suit, having due regard to the merits and
good faith of the claims or defenses made by the party litigant.  This Section 6.11 does not apply
to a suit by the Trustee, a suit by a Holder of a Note pursuant to Section 6.07
hereof, or a suit by Holders of more than 10% in principal amount of the then
outstanding Notes.

 

ARTICLE 7

TRUSTEE

 

For purposes of this series
of Securities (as defined in the Base Indenture), this Article 7 hereby
amends and restates in its entirety Article Six of the Base Indenture.

 

Section 7.01                                Duties
of Trustee.  (a)  If an Event of
Default has occurred and is continuing, the Trustee will exercise such of the
rights and powers vested in it by this Indenture, and use the same degree of
care and skill in its exercise, as a prudent person would exercise or use under
the circumstances in the conduct of such person’s own affairs.

 

(b)                                 Except
during the continuance of an Event of Default:

 

(1)                                  the
duties of the Trustee will be determined solely by the express provisions of this
Indenture and the Trustee need perform only those duties that are specifically
set forth in this Indenture and no others, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and

 

(2)                                  in
the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and conforming
to the requirements of this Indenture. 
However, in the case of certificates specifically required by any
provision herein to be furnished to it, the Trustee will examine the
certificates and opinions to determine whether or not they conform to the
requirements of this Indenture.

 

(c)                                  The
Trustee may not be relieved from liabilities for its own negligent action, its
own negligent failure to act, or its own willful misconduct, except that:

 

66

 

(1)                                  this
paragraph does not limit the effect of paragraph (b) of this Section 7.01;

 

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

 

(3)                                  the
Trustee will not be liable with respect to any action it takes or omits to take
in good faith in accordance with a direction received by it pursuant to Section 6.05
hereof.

 

(d)                                 Whether
or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to paragraphs (a), (b),
and (c) of this Section 7.01.

 

(e)                                  No
provision of this Indenture will require the Trustee to expend or risk its own
funds or incur any liability.  The
Trustee will be under no obligation to exercise any of its rights and powers
under this Indenture at the request of any Holders, unless such Holder has
offered to the Trustee security and indemnity satisfactory to it against any
loss, liability or expense.

 

(f)                                    The
Trustee will not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Company.  Money held in trust by the Trustee need not
be segregated from other funds except to the extent required by law.

 

Section 7.02                                Rights
of Trustee.  (a)  The Trustee
may conclusively rely upon any document (whether in original or facsimile form)
believed by it to be genuine and to have been signed or presented by the proper
Person.  The Trustee need not investigate
any fact or matter stated in the document.

 

(b)                                 Before
the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel or both. 
The Trustee will not be liable for any action it takes or omits to take
in good faith in reliance on such Officers’ Certificate or Opinion of Counsel.  The Trustee may consult with counsel of its
own selection and the advice of such counsel or any Opinion of Counsel will be
full and complete authorization and protection from liability in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.

 

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

 

(d)                                 The
Trustee will not be liable for any action it takes or omits to take in good
faith that it believes to be authorized or within the rights or powers
conferred upon it by this Indenture.

 

(e)                                  Unless
otherwise specifically provided in this Indenture, any demand, request,
direction or notice from the Company will be sufficient if signed by an Officer
of the Company.

 

67

 

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

 

(g)                                 In
no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited
to, loss of profit) irrespective of whether the Trustee has been advised of the
likelihood of such loss or damage and regardless of the form of action.

 

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

 

(i)                                     The
rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder,
and each agent, custodian and other Person employed to act hereunder.

 

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

 

Section 7.03                                Individual
Rights of Trustee.  The Trustee in
its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Company or any Affiliate of the Company with
the same rights it would have if it were not Trustee.  However, in the event that the Trustee
acquires any conflicting interest it must eliminate such conflict within 90
days, apply to the SEC for permission to continue as trustee (if this Indenture
has been qualified under the TIA) or resign. 
Any Agent may do the same with like rights and duties.  The Trustee is also subject to Sections
7.10 and 7.11 hereof.

 

Section 7.04                                Trustee’s
Disclaimer.  The Trustee will not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture or the Notes, it shall not be accountable for the Company’s use
of the proceeds from the Notes or any money paid to the Company or upon the
Company’s direction under any provision of this Indenture, it will not be
responsible for the use or application of any money received by any Paying
Agent other than the Trustee, and it will not be responsible for any statement
or recital herein or any statement in the Notes or any other document in
connection with the sale of the Notes or pursuant to this Indenture other than
its certificate of authentication.

 

Section 7.05                                Notice
of Defaults.  If a Default or Event of
Default occurs and is continuing and if it is known to the Trustee, the Trustee
will mail to Holders of Notes a notice of the Default or Event of Default
within 90 days after it occurs.  Except
in the case of a Default or Event of Default in payment of principal of and
premium, if any, or interest on, any Note, the

 

68

 

Trustee may withhold the notice if and so long as a committee of its
Responsible Officers in good faith determines that withholding the notice is in
the interests of the Holders of the Notes.

 

Section 7.06                                Reports
by Trustee to Holders of the Notes.  (a) 
Within 60 days after each May 15 beginning with the May 15 following
the date of this Indenture, and for so long as Notes remain outstanding, the
Trustee will mail to the Holders of the Notes a brief report dated as of such
reporting date that complies with TIA § 313(a) (but if no event
described in TIA § 313(a) has occurred within the twelve months
preceding the reporting date, no report need be transmitted).  The Trustee also will comply with TIA § 313(b)(2).  The Trustee will also transmit by mail all
reports as required by TIA § 313(c).

 

(b)                                 A
copy of each report at the time of its mailing to the Holders of Notes will be
mailed by the Trustee to the Company and filed by the Trustee with the SEC and
each stock exchange on which the Notes are listed in accordance with TIA § 313(d).  The Company will promptly notify the Trustee
when the Notes are listed on any stock exchange.

 

Section 7.07                                Compensation
and Indemnity.  (a)  The Company
will pay to the Trustee from time to time reasonable compensation for its
acceptance of this Indenture and services hereunder.  The Trustee’s compensation will not be
limited by any law on compensation of a trustee of an express trust.  The Company will reimburse the Trustee
promptly upon request for all reasonable disbursements, advances and expenses
incurred or made by it in addition to the compensation for its services.  Such expenses will include the reasonable compensation,
disbursements and expenses of the Trustee’s agents and counsel.

 

(b)                                 The
Company and the Guarantors, jointly and severally, will indemnify the Trustee
against any and all losses, liabilities, claims, damages or expenses incurred
by it arising out of or in connection with the acceptance or administration of
its duties under this Indenture, including the costs and expenses of enforcing
this Indenture against the Company and the Guarantors (including this Section 7.07)
and defending itself against any claim (whether asserted by the Company, the
Guarantors, any Holder or any other Person) or liability in connection with the
exercise or performance of any of its powers or duties hereunder, except to the
extent any such loss, liability, claim, damage or expense as shall be
determined to have been caused by its own negligence or bad faith.  The Trustee, upon a Responsible Officer
receiving written notice thereof, will notify the Company promptly of any claim
for which it may seek indemnity.  Failure
by the Trustee to so notify the Company will not relieve the Company or any of
the Guarantors of their obligations hereunder. 
The Company or such Guarantor will defend the claim and the Trustee will
cooperate in the defense.  The Trustee
may have separate counsel and the Company will pay the reasonable fees and
expenses of such counsel.  Neither the
Company nor any Guarantor need pay for any settlement made without its consent,
which consent will not be unreasonably withheld.

 

(c)                                  The
obligations of the Company and the Guarantors under this Section 7.07
will survive the satisfaction and discharge of this Indenture.

 

(d)                                 To
secure the Company’s and the Guarantors’ payment obligations in this Section 7.07,
the Trustee will have a Lien prior to the Notes on all money or property held
or

 

69

 

collected by the Trustee, except that held in trust to pay principal
and interest on particular Notes.  Such
Lien will survive the satisfaction and discharge of this Indenture.

 

(e)                                  When
the Trustee incurs expenses or renders services after an Event of Default
specified in Section 6.01(7) or (8) hereof occurs,
the expenses and the compensation for the services (including the fees and
expenses of its agents and counsel) are intended to constitute expenses of
administration under any Bankruptcy Law.

 

(f)                                    The
Trustee will comply with the provisions of TIA § 313(b)(2) to the
extent applicable.

 

Section 7.08                                Replacement
of Trustee.  (a)  A resignation
or removal of the Trustee and appointment of a successor Trustee will become
effective only upon the successor Trustee’s acceptance of appointment as
provided in this Section 7.08.

 

(b)                                 The
Trustee may resign in writing at any time and be discharged from the trust
hereby created by so notifying the Company. 
The Holders of a majority in principal amount of the then outstanding
Notes may remove the Trustee by so notifying the Trustee and the Company in
writing.  The Company may remove the
Trustee if:

 

(1)                                  the
Trustee fails to comply with Section 7.10 hereof;

 

(2)                                  the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

 

(3)                                  a
custodian or public officer takes charge of the Trustee or its property; or

 

(4)                                  the
Trustee becomes incapable of acting.

 

(c)                                  If
the Trustee resigns or is removed or if a vacancy exists in the office of
Trustee for any reason, the Company will promptly appoint a successor
Trustee.  Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount
of the then outstanding Notes may appoint a successor Trustee to replace the
successor Trustee appointed by the Company.

 

(d)                                 If
a successor Trustee does not take office within 60 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Company, or the
Holders of at least 10% in principal amount of the then outstanding Notes may
petition at the expense of the Company any court of competent jurisdiction for
the appointment of a successor Trustee.

 

(e)                                  If
the Trustee, after written request by any Holder who has been a Holder for at
least six months, fails to comply with Section 7.10 hereof, such
Holder may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee.

 

(f)                                    A
successor Trustee will deliver a written acceptance of its appointment to the
retiring Trustee and to the Company. 
Thereupon, the resignation or removal of the retiring Trustee will
become effective, and the successor Trustee will have all the rights, powers
and duties of the Trustee under this Indenture. 
The successor Trustee will mail a notice of its

 

70

 

succession to
Holders.  The retiring Trustee will
promptly transfer all property held by it as Trustee to the successor Trustee, provided
all sums owing to the Trustee hereunder have been paid and subject to the Lien
provided for in Section 7.07 hereof.  Notwithstanding replacement of the Trustee
pursuant to this Section 7.08, the Company’s obligations under Section 7.07
hereof will continue for the benefit of the retiring Trustee.

 

Section 7.09                                Successor
Trustee by Merger, etc.  If the
Trustee consolidates, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act will be the successor Trustee.

 

Section 7.10                                Eligibility;
Disqualification.  There will at all
times be a Trustee hereunder that is a corporation organized and doing business
under the laws of the United States of America or of any state thereof that is
authorized under such laws to exercise corporate trustee power, that is subject
to supervision or examination by federal or state authorities and that has a
combined capital and surplus of at least $100.0 million as set forth in its
most recent published annual report of condition.

 

This Indenture
will always have a Trustee who satisfies the requirements of TIA § 310(a)(1),
(2) and (5).  The Trustee is subject
to TIA § 310(b).

 

Section 7.11                                Preferential
Collection of Claims Against Company. 
The Trustee is subject to TIA § 311(a), excluding any creditor
relationship listed in TIA § 311(b). 
A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to
the extent indicated therein.

 

ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

For purposes of this series
of Securities (as defined in the Base Indenture), this Article 8 hereby
amends and restates in its entirety Article Thirteen of the Base
Indenture.

 

Section 8.01                                Option
to Effect Legal Defeasance or Covenant Defeasance.  The Company may, at its option and at any
time, elect to have either Section 8.02 or 8.03 hereof be
applied to all outstanding Notes and the Subsidiary Guarantees upon compliance
with the conditions set forth below in this Article 8.

 

Section 8.02                                Legal
Defeasance and Discharge.  Upon the
Company’s exercise under Section 8.01 hereof of the option
applicable to this Section 8.02, the Company and each of the
Guarantors will, subject to the satisfaction of the conditions set forth in Section 8.04
hereof, be deemed to have been discharged from their obligations with respect
to all outstanding Notes (including the Subsidiary Guarantees) on the date the
conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that
the Company and the Guarantors will be deemed to have paid and discharged the
entire Indebtedness represented by the outstanding Notes (including the Subsidiary
Guarantees), which will thereafter be deemed to be “outstanding” only for the
purposes of Section 8.05 hereof and the

 

71

 

other Sections of
this Indenture referred to in clauses (1) and (2) below,
and to have satisfied all their other obligations under such Notes, the
Subsidiary Guarantees and this Indenture (and the Trustee, on demand of and at
the expense of the Company, shall execute proper instruments acknowledging the
same), except for the following provisions which will survive until otherwise
terminated or discharged hereunder:

 

(1)                                  the
rights of Holders of outstanding Notes to receive payments in respect of the
principal of, interest, or premium, if any, on the Notes when such payments are
due from the trust referred to in Section 8.04 hereof;

 

(2)                                  the
Company’s obligations with respect to the Notes under Article 2 and
Section 4.02 hereof;

 

(3)                                  the
rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Company’s and the Guarantors’ obligations in connection therewith; and..

 

(4)                                  this
Article 8.

 

Subject to
compliance with this Article 8, the Company may exercise its option
under this Section 8.02 notwithstanding the prior exercise of its
option under Section 8.03 hereof.

 

Section 8.03                                Covenant
Defeasance.  Upon the Company’s
exercise under Section 8.01 hereof of the option applicable to this
Section 8.03, the Company and each of the Guarantors will, subject
to the satisfaction of the conditions set forth in Section 8.04 hereof,
be released from each of their obligations under the covenants contained in Sections
4.04, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12,
4.13, 4.15, 4.16, 4.17, 4.18, 4.19
and 4.20 hereof and clause (4) of Section 5.01
hereof with respect to the outstanding Notes on and after the date the
conditions set forth in Section 8.04 hereof are satisfied
(hereinafter, “Covenant Defeasance”), and the Notes will thereafter be
deemed not “outstanding” for the purposes of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in
connection with such covenants, but will continue to be deemed “outstanding”
for all other purposes hereunder (it being understood that such Notes will not
be deemed outstanding for accounting purposes). 
For this purpose, Covenant Defeasance means that, with respect to the
outstanding Notes and Subsidiary Guarantees, the Company and the Guarantors may
omit to comply with and will have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or
by reason of any reference in any such covenant to any other provision herein
or in any other document and such omission to comply will not constitute a
Default or an Event of Default under Section 6.01 hereof, but,
except as specified above, the remainder of this Indenture and such Notes and
Subsidiary Guarantees will be unaffected thereby.  In addition, upon the Company’s exercise under
Section 8.01 hereof of the option applicable to this Section 8.03
hereof, subject to the satisfaction of the conditions set forth in Section 8.04
hereon Sections 6.01(3) through 6.01(5) hereof will not
constitute Events of Default.

 

Section 8.04                                Conditions
to Legal or Covenant Defeasance.  In
order to exercise either Legal Defeasance or Covenant Defeasance under either Section 8.02
or 8.03 hereof:

 

72

 

(1)                                  the
Company must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders of the Notes, cash in U.S. dollars, non-callable Government
Securities, or a combination of cash in U.S. dollars and non-callable
Government Securities, in amounts as will be sufficient, in the opinion of a nationally
recognized investment bank, appraisal firm or firm of independent public
accountants to pay the principal of, or interest and premium, if any, on the
outstanding Notes on the stated date for payment thereof or on the applicable
redemption date, as the case may be, and the Company must specify whether the
Notes are being defeased to such stated date for payment or to a particular
redemption date;

 

(2)                                  in
the case of an election under Section 8.02 hereof, the Company has
delivered to the Trustee an Opinion of Counsel confirming that:

 

(A)                              the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling; or

 

(B)                                since
the date of this Indenture, there has been a change in the applicable federal
income tax law,

 

in either case to the effect that, and based thereon such Opinion of
Counsel shall confirm that, the Holders of the outstanding Notes will not
recognize income, gain or loss for federal income tax purposes as a result of
such Legal Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case
if such Legal Defeasance had not occurred;

 

(3)                                  in
the case of an election under Section 8.03 hereof, the Company has
delivered to the Trustee an Opinion of Counsel confirming that the Holders of
the outstanding Notes will not recognize income, gain or loss for federal
income tax purposes as a result of such Covenant Defeasance and will be subject
to federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Covenant Defeasance had not occurred;

 

(4)                                  no
Default or Event of Default has occurred and is continuing on the date of such
deposit (other than a Default or Event of Default resulting from the borrowing
of fiends to be applied to such deposit) and the deposit will not result in a
breach or violation of, or constitute a default under, any other instrument to
which the Company or any Guarantor is a party or by which the Company or any Guarantor
is bound;

 

(5)                                  such
Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under, any material agreement or
instrument (other than this Indenture) to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound;

 

(6)                                  the
Company must deliver to the Trustee an Officers’ Certificate stating that the
deposit was not made by the Company with the intent of preferring the Holders
of Notes over the other creditors of the Company with the intent of defeating,
hindering, delaying or defrauding creditors of the Company or others; and

 

73

 

(7)                                  the
Company must deliver to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for or relating to
the Legal Defeasance or the Covenant Defeasance have been complied with.

 

Section 8.05                                Deposited
Money and Government Securities to be Held in Trust; Other Miscellaneous
Provisions.  Subject to Section 8.06
hereof, all money and non-callable Government Securities (including the
proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 8.05, the “Trustee”)
pursuant to Section 8.04 hereof in respect of the outstanding Notes
will be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as Paying Agent) as the
Trustee may determine, to the Holders of such Notes of all sums due and to
become due thereon in respect of principal and premium, if any, and interest,
but such money need not be segregated from other funds except to the extent
required by law.

 

The Company
will pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the cash or non-callable Government Securities deposited
pursuant to Section 8.04 hereof or the principal and interest
received in respect thereof other than any such tax, fee or other charge which
by law is for the account of the Holders of the outstanding Notes.

 

Notwithstanding
anything in this Article 8 to the contrary, the Trustee will
deliver or pay to the Company from time to time upon the request of the Company
any money or non-callable Government Securities held by it as provided in Section 8.04
hereof which, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee (which may be the opinion delivered under Section 8.04(1) hereof),
are in excess of the amount thereof that would then be required to be deposited
to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

Section 8.06                                Repayment
to Company.  Any money deposited with
the Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of, premium, if any, or interest on any Note and
remaining unclaimed for two years after such principal, premium, if any, or
interest has become due and payable shall be paid to the Company on its request
or (if then held by the Company) will be discharged from such trust; and the
Holder of such Note will thereafter be permitted to look only to the Company
for payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, will thereupon cease; provided, however, that the
Trustee or such Paying Agent, before being required to make any such repayment,
may at the expense of the Company cause to be published once, in the New
York Times and The Wall Street Journal (national edition), notice
that such money remains unclaimed and that, after a date specified therein,
which will not be less than 30 days from the date of such notification or
publication, any unclaimed balance of such money then remaining will be repaid
to the Company.

 

Section 8.07                                Reinstatement.  If the Trustee or Paying Agent is unable to
apply any United States dollars or non-callable Government Securities in
accordance with Section 8.02 or 8.03 hereof, as the case may
be, by reason of any order or judgment of any court or

 

74

 

governmental
authority enjoining, restraining or otherwise prohibiting such application,
then the Company’s and the Guarantors’ obligations under this Indenture and the
Notes and the Subsidiary Guarantees will be revived and reinstated as though no
deposit had occurred pursuant to Section 8.02 or 8.03 hereof
until such time as the Trustee or Paying Agent is permitted to apply all such
money in accordance with Section 8.02 or 8.03 hereof, as the
case may be; provided, however, that, if the Company makes any
payment of principal of, premium, if any, or interest on any Note following the
reinstatement of its obligations, the Company will be subrogated to the rights
of the Holders of such Notes to receive such payment from the money held by the
Trustee or Paying Agent.

 

ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER

 

For purposes of this series
of Securities (as defined in the Base Indenture), this Article 9 hereby
amends and restates in its entirety Article Nine of the Base Indenture.

 

Section 9.01                                Without
Consent of Holders of Notes. 
Notwithstanding Section 9.02 of this Indenture, without the
consent of any Holder of Notes, the Company, the Guarantors and the Trustee may
amend or supplement this Indenture, the Notes or the Subsidiary Guarantees:

 

(1)                                  to
cure any ambiguity, mistake, defect or inconsistency;

 

(2)                                  to
provide for uncertificated Notes in addition to or in place of Certificated
Notes;

 

(3)                                  to
provide for the assumption of the Company’s or a Guarantor’s obligations to the
Holders of Notes and Subsidiary Guarantees in the case of a merger or
consolidation or sale of all or substantially all of the Company’s or such
Guarantor’s assets, as applicable;

 

(4)                                  to
make any change that would provide any additional rights or benefits to the
Holders of Notes or that does not adversely affect the legal rights hereunder
of any such Holder;

 

(5)                                  to
comply with requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA;

 

(6)                                  to
add additional Guarantees with respect to the Notes or release Guarantors from
Subsidiary Guarantees as provided or permitted by the terms of this Indenture;
or

 

(7)                                  to
conform the text of this Indenture or the Notes to any provision of the “Description
of Notes” section of the Company’s Prospectus Supplement dated January 23,
2006, relating to the initial offering of the Notes, to the extent that such
provision in that “Description of Notes” was intended to be a verbatim
recitation of a provision of this Indenture, the Subsidiary Guarantees or the
Notes.

 

75

 

The consent of
the Holders of the Notes is not necessary to approve the particular form of any
proposed amendment.  It is sufficient if
such consent approves the substance of such proposed amendment.  After an amendment becomes effective, the
Company is required to mail to each registered Holder of the Notes a notice
briefly describing such amendment. 
However, the failure to give such notice to all Holders of the Notes, or
any defect therein, will not impair or affect the validity of the amendment.

 

Upon the
request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and
upon receipt by the Trustee of the documents described in Section 7.02
hereof the Trustee will join with the Company and the Guarantors in the
execution of any amended or supplemental indenture authorized or permitted by
the terms of this Indenture and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee will not be
obligated to enter into such amended or supplemental indenture that affects its
own rights, duties or immunities under this Indenture or otherwise.

 

Section 9.02                                With
Consent of Holders of Notes.  Except
as provided below in this Section 9.02, the Company and the Trustee
may amend or supplement this Indenture (including, without limitation, Section 3.09,
4.10 and 4.15 hereof), the Subsidiary Guarantees and the Notes
with the consent of the Holders of at least a majority in principal amount of
the Notes (including, without limitation, Additional Notes, if any) then
outstanding voting as a single class (including, without limitation, consents
obtained in connection with a tender offer or exchange offer for, or purchase
of, the Notes), and, subject to Sections 6.04 and 6.07 hereof;
any existing Default or Event of Default (other than a Default or Event of
Default in the payment of the principal of, premium, if any, or interest on the
Notes, except a payment default resulting from an acceleration that has been
rescinded) or compliance with any provision of this Indenture, the Subsidiary
Guarantees or the Notes may be waived with the consent of the Holders of a
majority in principal amount of the then outstanding Notes voting as a single
class (including consents obtained in connection with a tender offer or
exchange offer for, or purchase of, the Notes). 
Section 2.08 hereof shall determine which Notes are
considered to be “outstanding” for purposes of this Section 9.02.

 

Upon the
request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and
upon the filing with the Trustee of evidence satisfactory to the Trustee of the
consent of the Holders of Notes as aforesaid, and upon receipt by the Trustee
of the documents described in Section 7.02 hereof, the Trustee will
join with the Company and the Guarantors in the execution of such amended or
supplemental indenture unless such amended or supplemental indenture directly
affects the Trustee’s own rights, duties or immunities under this Indenture or
otherwise, in which case the Trustee may in its discretion, but will not be
obligated to, enter into such amended or supplemental Indenture.

 

It is not be
necessary for the consent of the Holders of Notes under this Section 9.02
to approve the particular form of any proposed amendment or waiver, but it is
sufficient if such consent approves the substance thereof.

 

76

 

After an
amendment, supplement or waiver under this Section 9.02 becomes
effective, the Company will mail to the Holders of Notes affected thereby a
notice briefly describing the amendment, supplement or waiver.  Any failure of the Company to mail such
notice, or any defect therein, will not, however, in any way impair or affect
the validity of any such amended or supplemental indenture or waiver.  Subject to Sections 6.04 and 6.07
hereof, the Holders of a majority in aggregate principal amount of the Notes
then outstanding voting as a single class may waive compliance in a particular
instance by the Company with any provision of this Indenture, the Notes, or the
Subsidiary Guarantees.  However, without
the consent of each Holder affected, an amendment, supplement or waiver under
this Section 9.02 may not (with respect to any Notes held by a
non-consenting Holder):

 

(1)                                  reduce
the principal amount of Notes whose Holders must consent to an amendment,
supplement or waiver,

 

(2)                                  reduce
the principal of or change the fixed maturity of any Note or alter the
provisions with respect to the redemption of the Notes (other than as provided
with respect to Sections 3.09, 4.10 or 4.15 hereof);

 

(3)                                  reduce
the rate of or change the time for payment of interest, including default
interest, on any Note;

 

(4)                                  waive
a Default or Event of Default in the payment of principal of, interest, or
premium, if any, on the Notes (except a rescission of acceleration of the Notes
by the Holders of at least a majority in aggregate principal amount of the then
outstanding Notes and a waiver of the payment default that resulted from such
acceleration);

 

(5)                                  make
any Note payable in money other than that stated in the Notes;

 

(6)                                  make
any change in the provisions of this Indenture relating to waivers of past
Defaults or the rights of Holders of Notes to receive payments of principal of,
interest, or premium, if any, on the Notes;

 

(7)                                  waive
a redemption payment with respect to any Note (other than a payment required by
Sections 3.09, 4.10 or 4.15 hereof);

 

(8)                                  release
any Guarantor from any of its obligations under its Subsidiary Guarantee or
this Indenture, except in accordance with the terms of this Indenture; or

 

(9)                                  make
any change covered by (6) in the foregoing amendment and waiver
provisions.

 

Section 9.03                                Compliance
with Trust Indenture Act.  Every
amendment or supplement to this Indenture or the Notes will be set forth in an
amended or supplemental indenture that complies with the TIA as then in effect.

 

Section 9.04                                Revocation
and Effect of Consents.  Until an
amendment, supplement or waiver becomes effective, a consent to it by a Holder
of a Note is a continuing consent by the

 

77

 

Holder of a Note
and every subsequent Holder of a Note or portion of a Note that evidences the
same debt as the consenting Holder’s Note, even if notation of the consent is
not made on any Note.  However, any such
Holder of a Note or subsequent Holder of a Note may revoke the consent as to
its Note if the Trustee receives written notice of revocation before the date
the waiver, supplement or amendment becomes effective.  An amendment, supplement or waiver becomes
effective in accordance with its terms and thereafter binds every Holder.

 

Section 9.05                                Notation
on or Exchange of Notes.  The Trustee
may place an appropriate notation about an amendment, supplement or waiver on
any Note thereafter authenticated.  The
Company in exchange for all Notes may issue and the Trustee shall, upon receipt
of an Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

 

Failure to
make the appropriate notation or issue a new Note will not affect the validity
and effect of such amendment, supplement or waiver.

 

Section 9.06                                Trustee
to Sign Amendments, etc.  The Trustee
will sign any amended or supplemental indenture authorized pursuant to this Article 9
if the amendment or supplement does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. 
The Company may not sign an amended or supplemental indenture until the
Board of Directors approves it.  In
executing any amended or supplemental indenture, the Trustee will be provided
with and (subject to Section 7.01 hereof) will be fully protected
in relying upon, in addition to the documents required by Section 13.04
hereof, an Officers’ Certificate and an Opinion of Counsel stating that the
execution of such amended or supplemental indenture is authorized or permitted
by this Indenture.

 

ARTICLE 10

INTENTIONALLY OMITTED

 

ARTICLE 11

SUBSIDIARY GUARANTEES

 

Section 11.01                          Guarantee.  (a)  Subject to this Article 11,
each of the Guarantors hereby, jointly and severally, unconditionally
guarantees to each Holder of a Note authenticated and delivered by the Trustee
and to the Trustee and its successors and assigns, irrespective of the validity
and enforceability of this Indenture, the Notes or the obligations of the
Company hereunder or thereunder, that:

 

(1)                                  the
principal of, premium, if any, and interest on the Notes will be promptly paid
in full when due, whether at maturity, by acceleration, redemption or
otherwise, and interest on the overdue principal of and interest on the Notes,
if any, if lawful, and all other obligations of the Company to the Holders or
the Trustee hereunder or thereunder will be promptly paid in full or performed,
all in accordance with the terms hereof and thereof; and

 

78

 

(2)                                  in
case of any extension of time of payment or renewal of any Notes or any of such
other obligations, that same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at
stated maturity, by acceleration or otherwise.

 

Failing
payment when due of any amount so guaranteed or any performance so guaranteed
for whatever reason, the Guarantors will be jointly and severally obligated to
pay the same immediately.  Each Guarantor
agrees that this is a guarantee of payment and not a guarantee of collection.

 

(b)                                 The
Guarantors hereby agree that their obligations hereunder are unconditional,
irrespective of the validity, regularity or enforceability of the Notes or this
Indenture, the absence of any action to enforce the same, any waiver or consent
by any Holder of the Notes with respect to any provisions hereof or thereof;
the recovery of any judgment against the Company, any action to enforce the
same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a guarantor. 
Each Guarantor hereby waives diligence, presentment, demand of payment,
filing of claims with a court in the event of insolvency or bankruptcy of the
Company, any right to require a proceeding first against the Company, protest,
notice and all demands whatsoever and covenant that this Subsidiary Guarantee
will not be discharged except by complete performance of the obligations
contained in the Notes and this Indenture.

 

(c)                                  If
any Holder or the Trustee is required by any court or otherwise to return to
the Company, the Guarantors or any custodian, trustee, liquidator or other
similar official acting in relation to either the Company or the Guarantors,
any amount paid by either to the Trustee or such Holder, this Subsidiary
Guarantee, to the extent theretofore discharged, will be reinstated in full
force and effect.

 

(d)                                 Each
Guarantor agrees that it will not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until
payment in full of all obligations guaranteed hereby.  Each Guarantor further agrees that, as
between the Guarantors, on the one hand, and the Holders and the Trustee, on
the other hand, (1) the maturity of the obligations guaranteed hereby may
be accelerated as provided in Article 6 hereof for the purposes of
this Subsidiary Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (2) in the event of any declaration of acceleration
of such obligations as provided in Article 6 hereof, such
obligations (whether or not due and payable) will forthwith become due and
payable by the Guarantors for the purpose of this Subsidiary Guarantee.  The Guarantors will have the right to seek
contribution from any non-paying Guarantor so long as the exercise of such
right does not impair the rights of the Holders under the Subsidiary Guarantee.

 

Section 11.02                          Intentionally
Omitted.

 

Section 11.03                          Limitation
on Guarantor Liability.  Each Guarantor,
and by its acceptance of Notes, each Holder, hereby confirms that it is the
intention of all such parties that the Subsidiary Guarantee of such Guarantor
not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy
Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent

 

79

 

 

Transfer Act or
any similar federal or state law to the extent applicable to any Subsidiary
Guarantee.  To effectuate the foregoing
intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree
that the obligations of such Guarantor will be limited to the maximum amount
that will, after giving effect to such maximum amount and all other contingent
and fixed liabilities of such Guarantor that are relevant under such laws, and
after giving effect to any collections from, rights to receive contribution
from or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under this Article 11, result
in the obligations of such Guarantor under its Subsidiary Guarantee not
constituting a fraudulent transfer or conveyance.

 

Section 11.04                          Execution
and Delivery of Subsidiary Guarantee. 
To evidence its Subsidiary Guarantee set forth in Section 11.01
hereof, each Guarantor hereby agrees that a notation of such Subsidiary
Guarantee substantially in the form attached as Exhibit B hereto
will be endorsed by an Officer of such Guarantor on each Note authenticated and
delivered by the Trustee and that this Indenture will be executed on behalf of
such Guarantor by one of its Officers.

 

Each Guarantor
hereby agrees that its Subsidiary Guarantee set forth in Section 11.01
hereof will remain in full force and effect notwithstanding any failure to
endorse on each Note a notation of such Subsidiary Guarantee.

 

If an Officer
whose signature is on this Indenture or on the Subsidiary Guarantee no longer
holds that office at the time the Trustee authenticates the Note on which a
Subsidiary Guarantee is endorsed, the Subsidiary Guarantee will be valid
nevertheless.

 

The delivery
of any Note by the Trustee, after the authentication thereof hereunder, will
constitute due delivery of the Subsidiary Guarantee set forth in this Indenture
on behalf of the Guarantors.

 

In the event
that the Company or any of its Restricted Subsidiaries creates or acquires any
Domestic Subsidiary after the date of this Indenture, if required by Section 4.20
hereof, the Company will cause such Domestic Subsidiary to comply with the
provisions of Section 4.20 hereof and this Article 11,
to the extent applicable.

 

Section 11.05                          Guarantors
May Consolidate, etc., on Certain Terms.  No Guarantor may sell or otherwise dispose of
all or substantially all of its assets to, or consolidate with or merge with or
into (whether or not such Guarantor is the surviving Person) another Person,
other than the Company or another Guarantor, unless:

 

(1)                                  immediately
after giving effect to such transaction, no Default or Event of Default exists;
and

 

(2)                                  either:

 

(a)                                  the
Person acquiring the property in any such sale or disposition or the Person
formed by or surviving any such consolidation or merger assumes all the
obligations of that Guarantor under this Indenture and the Subsidiary

 

80

 

Guarantee, pursuant to a supplemental indenture in
form and substance reasonably satisfactory to the Trustee, on the terms set
forth herein or therein; or

 

(b)                                 the
Net Proceeds of such sale or other disposition are applied in accordance with
the applicable provisions of this Indenture.

 

In case of any
such consolidation, merger, sale or conveyance and upon the assumption by the
successor Person, by supplemental indenture, executed and delivered to the
Trustee and satisfactory in form to the Trustee, of the Subsidiary Guarantee
endorsed upon the Notes and the due and punctual performance of all of the
covenants and conditions of this Indenture to be performed by the Guarantor,
such successor Person will succeed to and be substituted for the Guarantor with
the same effect as if it had been named herein as a Guarantor.  Such successor Person thereupon may cause to
be signed any or all of the Subsidiary Guarantees to be endorsed upon all of
the Notes issuable hereunder which theretofore shall not have been signed by
the Company and delivered to the Trustee. 
All the Subsidiary Guarantees so issued will in all respects have the
same legal rank and benefit under this Indenture as the Subsidiary Guarantees
theretofore and thereafter issued in accordance with the terms of this
Indenture as though all of such Subsidiary Guarantees had been issued at the
date of the execution hereof.

 

Except as set
forth in Articles 4 and 5 hereof and notwithstanding clauses (a) and
(b) above, nothing contained in this Indenture or in any of the
Notes will prevent any consolidation or merger of a Guarantor with or into the
Company or another Guarantor, or will prevent any sale or conveyance of the
property of a Guarantor as an entirety or substantially as an entirety to the
Company or another Guarantor.

 

Section 11.06                          Releases.  (a)  In the event of any sale or other
disposition of all or substantially all of the assets of any Guarantor, by way
of merger, consolidation or otherwise, or a sale or other disposition of all of
the Capital Stock of any Guarantor, in each case in accordance with Section 4.10
hereof, then such Guarantor (in the event of a sale or other disposition, by
way of merger, consolidation or otherwise, of all of the Capital Stock of such
Guarantor) or the corporation acquiring the property (in the event of a sale or
other disposition of all or substantially all of the assets of such Guarantor)
will be released and relieved of any obligations under its Subsidiary
Guarantee; provided that the Net Proceeds of such sale or other
disposition are applied in accordance with the applicable provisions of this
Indenture, including without limitation Section 4.10 hereof.  Upon delivery by the Company to the Trustee
of an Officers’ Certificate and an Opinion of Counsel to the effect that such
sale or other disposition was made by the Company in accordance with the provisions
of this Indenture, including without limitation Section 4.10
hereof, the Trustee will execute any documents reasonably required in order to
evidence the release of any Guarantor from its obligations under its Subsidiary
Guarantee.

 

(b)                                 Upon
designation of any Guarantor as an Unrestricted Subsidiary in accordance with
the terms of this Indenture, such Guarantor will be released and relieved of
any obligations under its Subsidiary Guarantee.

 

81

 

(c)                                  Upon
Legal Defeasance in accordance with Article 8 hereof or
satisfaction and discharge of this Indenture in accordance with Article 11
hereof, each Guarantor will be released and relieved of any obligations under
its Subsidiary Guarantee.

 

(d)                                 Upon
the release of any Guarantor from its obligations as a Guarantor under the
Credit Agreement and any other Indebtedness of the Company, each Guarantor will
be released and relieved of any obligations under its Subsidiary Guarantee.

 

Any Guarantor
not released from its obligations under its Subsidiary Guarantee as provided in
this Section 11.06 will remain liable for the full amount of
principal of and interest on the Notes and for the other obligations of any
Guarantor under this Indenture as provided in this Article 11.

 

ARTICLE 12

SATISFACTION AND DISCHARGE

 

For purposes of this series
of Securities (as defined in the Base Indenture), this Article 12 hereby
amends and restates in its entirety Article Four of the Base Indenture.

 

Section 12.01                          Satisfaction
and Discharge.  This Indenture will
be discharged and will cease to be of further effect as to all Notes issued
hereunder, when:

 

(1)                                  either:

 

(a)                                  all
Notes that have been authenticated, except lost, stolen or destroyed Notes that
have been replaced or paid and Notes for whose payment money has been deposited
in trust and thereafter repaid to the Company), have been delivered to the
Trustee for cancellation; or

 

(b)                                 all
Notes that have not been delivered to the Trustee for cancellation have become
due and payable by reason of the mailing of a notice of redemption or otherwise
or will become due and payable within one year and the Company or any Guarantor
has irrevocably deposited or caused to be deposited with the Trustee as trust
finds in trust solely for the benefit of the Holders, cash in U.S. dollars,
non-callable Government Securities, or a combination of cash in U.S. dollars
and non-callable Government Securities, in amounts as will be sufficient,
without consideration of any reinvestment of interest, to pay and discharge the
entire Indebtedness on the Notes not delivered to the Trustee for cancellation
for principal, premium, if any, and accrued interest to the date of maturity or
redemption;

 

(2)                                  no
Default or Event of Default has occurred and is continuing on the date of the
deposit (other than a Default or Event of Default resulting from the borrowing
of funds to be applied to such deposit) and the deposit will not result in a
breach or violation of, or constitute a default under, any other instrument to
which the Company or any Guarantor is a party or by which the Company or any
Guarantor is bound;

 

82

 

(3)                                  the
Company or any Guarantor has paid or caused to be paid all sums payable by it
under this Indenture; and

 

(4)                                  the
Company has delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of the Notes at
maturity or the redemption date, as the case may be.

 

In addition, the Company
must deliver an Officers’ Certificate and an Opinion of Counsel to the Trustee
stating that all conditions precedent to satisfaction and discharge have been
satisfied.

 

Notwithstanding
the satisfaction and discharge of this Indenture, if money has been deposited
with the Trustee pursuant to subclause (b) of clause (1) of
this Section, the provisions of Sections 12.02 and 8.06 will
survive such satisfaction and discharge. 
In addition, nothing in this Section 12.01 will be deemed to
discharge those provisions of Section 7.07 hereof, that, by their
terms, survive the satisfaction and discharge of this Indenture.

 

Section 12.02                          Application
of Trust Money.  Subject to the
provisions of Section 8.06 hereof, all money deposited with the
Trustee pursuant to Section 12.01 hereof shall be held in trust and
applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (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.

 

If the Trustee
or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 12.01 hereof by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Company’s and any Guarantor’s obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit bad occurred pursuant to Section 12.01
hereof; provided that if the Company has made any payment of principal
of, premium, if any, or interest on any Notes because of the reinstatement of
its obligations, the Company shall be subrogated to the rights of the Holders
of such Notes to receive such payment from the money or Government Securities
held by the Trustee or Paying Agent.

 

ARTICLE 13

 

MISCELLANEOUS

 

For purposes of this series of Securities (as
defined in the Base Indenture), this Article 13 hereby amends and restates
in their entirety Article Seven and Article Fourteen of the Base
Indenture.

 

Section 13.01                          Trust
Indenture Act Controls.  If any
provision of this Indenture limits, qualifies or conflicts with the duties
imposed by TIA §318(c), the imposed duties will control.

 

83

 

Section 13.02                          Notices.  Any notice or communication by the Company,
any Guarantor or the Trustee to the others is duly given if in writing and
delivered in Person or mailed by first class mail (registered or certified,
return receipt requested), telex, telecopier or overnight air courier
guaranteeing next day delivery, to the others’ address:

 

If to the
Company and/or any Guarantor:

 

DRS
Technologies, Inc.

5 Sylvan Way

Parsippany, New Jersey 07054 

Telecopier No.:  (973) 898-1500 

Attention:  Chief Financial Officer

 

With a copy
to:

 

Skadden, Arps,
Slate, Meagher & Flom LLP 

Four Times Square

New York, New York 10036 

Telecopier No.:  (212) 735-2000 

Attention:  David J. Goldschmidt, Esq.

 

If to the
Trustee:

 

The Bank of
New York

101 Barclay Street-8 West 

New York, New York 10286 

Telecopier No.:  (212) 815-5707 

Attention:  Corporate Trust
Administration

 

The Company,
any Guarantor or the Trustee, by notice to the others, may designate additional
or different addresses for subsequent notices or communications.

 

All notices
and communications (other than those sent to Holders) will be deemed to have
been duly given:  at the time delivered
by hand, if personally delivered; five Business Days after being deposited in
the mail, postage prepaid, if mailed; when answered back, if telexed; when
receipt acknowledged, if telecopied; and the next Business Day after timely
delivery to the courier, if sent by overnight air courier guaranteeing next day
delivery.

 

Any notice or
communication to a Holder will be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing
next day delivery to its address shown on the register kept by the
Registrar.  Any notice or communication
will also be so mailed to any Person described in TIA § 313(c), to the
extent required by the TIA.  Failure to
mail a notice or communication to a Holder or any defect in it will not affect
its sufficiency with respect to other Holders.

 

If a notice or
communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

 

84

 

If the Company
mails a notice or communication to Holders, it will mail a copy to the Trustee
and each Agent at the same time.

 

Section 13.03                          Communication
by Holders of Notes with Other Holders of Notes.  Holders may communicate pursuant to TIA § 312(b) with
other Holders with respect to their rights under this Indenture or the
Notes.  The Company, the Trustee, the
Registrar and anyone else shall have the protection of TIA § 312(c).

 

Section 13.04                          Certificate
and Opinion as to Conditions Precedent. 
Notwithstanding anything contained to the contrary contained in Section 102
of the Base Indenture, upon any request or application by the Company to the
Trustee to take any action under this Indenture, the Company shall furnish to
the Trustee (except that the Opinion of Counsel referred to in Section 13.04(2) hereof
shall not be required in connection with the Authentication Order):

 

(1)                                  an
Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee (which must include the statements set forth in Section 13.05
hereof) stating that, in the opinion of the signers, all conditions precedent
and covenants, if any, provided for in this Indenture relating to the proposed
action have been satisfied; and

 

(2)                                  an
Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
(which must include the statements set forth in Section 13.05
hereof) stating that, in the opinion of such counsel, all such conditions
precedent and covenants have been satisfied.

 

Section 13.05                          Statements
Required in Certificate or Opinion. 
Notwithstanding anything contained to the contrary in Section 102
of the Base Indenture, each certificate or opinion with respect to compliance
with a condition or covenant provided for in this Indenture (other than a
certificate provided pursuant to TIA § 314(a)(4)) must comply with the
provisions of TIA § 314(e) and must include:

 

(1)                                  a
statement that the Person making such certificate or opinion has read such
covenant or condition;

 

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

 

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

 

(4)                                  a
statement as to whether or not, in the opinion of such Person, such condition
or covenant has been satisfied.

 

Section 13.06                          Rules by
Trustee and Agents.  The Trustee may
make reasonable rules for action by or at a meeting of Holders.  The Registrar or Paying Agent may make
reasonable rules and set reasonable requirements for its functions.

 

85

 

Section 13.07                          No
Personal Liability of Directors, Officers, Employees and Stockholders.  No director, officer, employee, incorporator
or stockholder of the Company or any Subsidiary (other than the Company or a
Guarantor in its capacity as a stockholder of a Subsidiary), as such, will have
any liability for any obligations of the Company or the Guarantors under the
Notes, this Indenture, the Subsidiary Guarantees or for any claim based on, in
respect of, or by reason of, such obligations or their creation.  Each Holder of Notes by accepting a Note
waives and releases all such liability. 
The waiver and release are part of the consideration for issuance of the
Notes.  The waiver may not be effective
to waive liabilities under the federal securities laws.

 

Section 13.08                          Governing
Law.  THE INTERNAL LAW OF THE STATE
OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND
THE SUBSIDIARY GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

 

Section 13.09                          No
Adverse Interpretation of Other Agreements. 
This Indenture may not be used to interpret any other indenture, loan or
debt agreement of the Company or its Subsidiaries or of any other Person.  Any such indenture, loan or debt agreement
may not be used to interpret this Indenture.

 

Section 13.10                          Successors.  All agreements of the Company in this
Indenture and the Notes will bind its successors.  All agreements of the Trustee in this
Indenture will bind its successors.  All
agreements of each Guarantor in this Indenture will bind its successors, except
as otherwise provided in Section 11.06.

 

Section 13.11                          Severability.  In case any provision in this Indenture or in
the Notes is invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions will not in any way be affected or
impaired thereby.

 

Section 13.12                          Counterpart
Originals.  The parties may sign any
number of copies of this Indenture.  Each
signed copy will be an original, but all of them together represent the same
agreement.

 

Section 13.13                          Table
of Contents, Headings, etc.  The
Table of Contents, Cross-Reference Table and Headings of the Articles and
Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part of this Indenture and will in no way
modify or restrict any of the terms or provisions hereof.

 

Section 13.14                          Supremacy.  To the extent that there exists a conflict
between the terms and conditions of this Supplemental Indenture and the terms
and conditions of the Base Indenture, the terms of this Supplemental Indenture
shall govern.

 

Section 13.15                          Force
Majeure.  In no event shall the
Trustee be responsible or liable for any failure or delay in the performance of
its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software and hardware)
services; it being understood that the Trustee shall use

 

86

 

reasonable efforts
which are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

 

[Signatures on following page]

 

87

 

SIGNATURES

 

	
  Dated as of
  January 31, 2006

  	
   

  
	
   

  	
   

  
	
   

  	
  DRS TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard A. Schneider

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard A. Schneider

  
	
   

  	
   

  	
  Title:

  	
  Executive VP, CFO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NAI TECHNOLOGIES, INC.

  
	
   

  	
  DRS ELECTRONIC SYSTEMS, INC.

  
	
   

  	
  DRS SURVEILLANCE SUPPORT SYSTEMS, INC.

  
	
   

  	
  DRS TECHNICAL SERVICES, INC.

  
	
   

  	
  DRS POWER & CONTROL TECHNOLOGIES,
  INC.

  
	
   

  	
  DRS ELECTRIC POWER TECHNOLOGIES, INC.

  
	
   

  	
  DRS POWER TECHNOLOGY, INC.

  
	
   

  	
  DRS TACTICAL SYSTEMS GLOBAL SERVICES, INC.

  
	
   

  	
  DRS TACTICAL SYSTEMS, INC.

  
	
   

  	
  DRS ENGINEERING DEVELOPMENT LABS, INC.

  
	
   

  	
  DRS SIGNAL TECHNOLOGIES, INC.

  
	
   

  	
  DRS SIGNAL RECORDING TECHNOLOGIES, INC.

  
	
   

  	
  DRS SYSTEMS MANAGEMENT CORPORATION

  
	
   

  	
  DRS OPTRONICS, INC.

  
	
   

  	
  DRS SENSORS & TARGETING SYSTEMS,
  INC.

  
	
   

  	
  DRS FPA, INC.

  
	
   

  	
  DRS INFRARED TECHNOLOGIES, L.P.

  
	
   

  	
  DRS UNMANNED TECHNOLOGIES, INC.

  
	
   

  	
  DRS DATA & IMAGING SYSTEMS, INC.

  
	
   

  	
  DRS TECHNOLOGIES CANADA, INC.

  
	
   

  	
  DRS COMMUNICATIONS COMPANY, LLC

  
	
   

  	
  DRS SYSTEMS, INC.

  
	
   

  	
  NIGHT VISION EQUIPMENT CO., INC.

  
	
   

  	
  DRS TRAINING & CONTROL SYSTEMS,
  INC.

  
	
   

  	
  DRS INTERNATIONAL, INC.

  
	
   

  	
  DRS CODEM SYSTEMS, INC.

  
	
   

  	
  INTEGRATED DEFENSE TECHNOLOGIES, INC.

  
	
   

  	
  TECH-SYM CORPORATION

  
	
   

  	
  DRS TEST & ENERGY MANAGEMENT, INC.

  
	
   

  	
  DRS SIGNAL SOLUTIONS, INC.

  
	
   

  	
  DRS EW & NETWORK SYSTEMS, INC.

  
	
   

  	
  MAXCO, INC.

  
					

 

 

	
   

  	
  By:

  	
  /s/ Richard A. Schneider

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard A. Schneider

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  
					

 

 

	
   

  	
  THE BANK OF NEW YORK

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kisha A. Holder

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kisha A. Holder

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
					

 

 

EXHIBIT A

 

[Face of Note]

 

CUSIP/CINS                         

 

65/8
% Senior Notes due 2016

 

	
  No.             

  	
  $                            

  

 

DRS
TECHNOLOGIES, INC.

 

promises to pay to [                       ]
or registered assigns,

 

the principal sum of
                                                                                                                        
DOLLARS on February 1, 2016.

 

Interest Payment Dates:  February 1 and August 1

 

Record Dates:  January 15 and July 15

 

Dated:                                   ,
200   

 

 

	
   

  	
  DRS TECHNOLOGIES, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

This is one of the Notes
referred to

in the within-mentioned Indenture:

 

	
  THE BANK OF
  NEW YORK, 

  as Trustee 

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

A-1

 

Back of Note

65/8 % Senior Notes due 2016

 

[Insert the
Global Note Legend, if applicable pursuant to the provisions of the Indenture]

 

Capitalized
terms used herein have the meanings assigned to them in the Supplemental
Indenture referred to below unless otherwise indicated.  All section references refer to sections
in the Supplemental Indenture unless otherwise indicated.

 

(1)   INTEREST.  DRS Technologies, Inc., a Delaware
corporation (the “Company”), promises to pay interest on the principal
amount of this Note at 65/8% per annum from January 31,
2006 until maturity.  The Company will
pay interest semi-annually in arrears on February 1 and August 1 of
each year, or if any such day is not a Business Day, on the next succeeding
Business Day (each, an “Interest Payment Date”).  Interest on the Notes will accrue from the
most recent date to which interest has been paid or, if no interest has been
paid, from the date of issuance; provided that if there is no existing
Default in the payment of interest, and if this Note is authenticated between a
record date referred to on the face hereof and the next succeeding Interest
Payment Date, interest shall accrue from such next succeeding Interest Payment
Date; provided  further that the first Interest Payment Date shall
be August 1, 2006.  The Company will
pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal and premium, if any, from time to time on
demand at a rate that is 1% per annum in excess of the rate then in effect; it
will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest, if any, (without regard to
any applicable grace periods) from time to time on demand at the same rate to
the extent lawful.  Interest will be
computed on the basis of a 360-day year comprised of twelve 30-day months.

 

(2)   METHOD
OF PAYMENT.  The
Company will pay interest on the Notes (except defaulted interest) to the
Persons who are registered Holders of Notes at the close of business on the January 15
or July 15 next preceding the Interest Payment Date, even if such Notes
are canceled after such record date and on or before such Interest Payment
Date, except as provided in Section 2.12 of the Indenture with
respect to defaulted interest.  The
Certificated Notes will be payable as to principal, or interest, and premium,
if any, by wire transfer of immediately available funds to the account
specified by the Holders of Certificated Notes, or at the Company’s option, at
the office or agency of the Paying Agent or Registrar within the City and State
of New York, unless the Company elects to make payment of interest by check
mailed to the Holders at their addresses set forth in the register of Holders; provided
that payment by wire transfer of immediately available funds will be required
with respect to principal of and interest, and premium, if any, on, all Global
Notes and all other Notes the Holders of which will have provided wire transfer
instructions to the Company or the Paying Agent.  Such payment will be in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts.

 

(3)  PAYING
AGENT AND REGISTRAR. 
Initially, The Bank of New York, the Trustee under the Indenture, will
act as Paying Agent and Registrar.  The
Company may change any Paying Agent or Registrar without notice to any Holder.  The Company or any of its Subsidiaries may
act in any such capacity.

 

A1-2

 

(4)   INDENTURE.  The Company issued the Notes under a Base
Indenture, dated as of January 31, 2006, between the Company and the
Trustee (the “Base Indenture”) as amended by a Supplemental Indenture
dated as of January 31, 2006 (the “Supplemental Indenture”, and,
together with the Base Indenture, the “Indenture”) among the Company,
the Guarantors and the Trustee.  The
terms of the Notes include those stated in the Indenture and those made part of
the Indenture by reference to the TIA (15 U.S. Code §§ 77aaa-77bbbb).  The Notes are subject to all such terms, and
Holders are referred to the Indenture and such Act for a statement of such
terms.  To the extent any provision of
this Note conflicts with the express provisions of the Indenture, the
provisions of the Indenture shall govern and be controlling.  To the extent any provision of the
Supplemental Indenture conflicts with any provision of the Base Indenture, the
Supplemental Indenture shall govern and be controlling.  The Notes are unsecured obligations of the
Company.

 

(5)   OPTIONAL
REDEMPTION.  (a)  Except as set forth in subparagraphs (a) and
(c) of this Paragraph 5, the Company will not have the option to
redeem the Notes prior to February 1, 2011.  At any time prior to February 1, 2011,
the Company may redeem all or part of the Notes for cash upon not less than 30
nor more than 60 days’ notice at redemption price equal to the greater of (1) 100%
of the principal amount of Notes being redeemed and (2) the sum of the
present values of 103.313% of the principal amount of the Notes being redeemed
and scheduled payments of interest on the Notes to, but not including, February 1,
2011 discounted to the date of redemption on a semi-annual basis (assuming a 360-day
year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis
points, together in the case of (1) and (2) above, with accrued and
unpaid interest, if any, to but not including the date of redemption.

 

(b)  On
or after February 1, 2009, the Company may redeem all or a part of the
Notes upon not less than 30 not more than 60 days’ notice at the redemption
prices (expressed as percentages of principal amount) set forth below plus
accrued and unpaid interest, if any on the Notes redeemed, to, but excluding,
the applicable redemption date, if redeemed during the twelve-month period
beginning on February 1 of the years indicated below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2011

  	
   

  	
  103.313

  	
  %

  
	
  2012

  	
   

  	
  102.209

  	
  %

  
	
  2013

  	
   

  	
  101.105

  	
  %

  
	
  2014 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)                                 Notwithstanding
the provisions of subparagraphs (a) and (b) of this
Paragraph 5, at any time prior to February 1, 2009, the Company may on any
one or more occasions redeem up to 35% of the aggregate principal amount of
Notes (including any Additional Notes issued after January 31, 2006) at a
redemption price of 106.625% of principal amount thereof; plus accrued and
unpaid interest, if any, to, but excluding, the redemption date, with the net
cash proceeds of one or more Equity Offerings provided that at least 65%
of the aggregate principal amount of the Notes originally issued under the
Indenture (excluding Notes held by the Company and its Subsidiaries) remains
outstanding immediately after the occurrence of such redemption and that such
redemption occurs within 120 days of the date of the closing of such Equity
Offering.

 

A1-3

 

Except
pursuant to the preceding two paragraphs, the Notes will not be redeemable at
the Company’s option prior to February 1, 2011.

 

Unless the
Company defaults in the payment of the redemption price, interest will cease to
accrue on the Notes or portions thereof called for redemption on the applicable
redemption date.

 

(6)   MANDATORY
REDEMPTION.  The
Company will not be required to make mandatory redemption or sinking fund
payments with respect to the Notes.

 

(7)   REPURCHASE
AT THE OPTION OF HOLDER.  (a)  If there is a Change of Control, the Company
will be required to make an offer (a “Change of Control Offer”) to
repurchase all or any part (equal to $1,000 or an integral multiple thereof) of
each Holder’s Notes at a purchase price equal to 101% of the aggregate
principal amount thereof plus accrued and unpaid interest, if any, to, but
excluding, the date of purchase subject to the rights of Noteholders on the
relevant record date to receive interest due on the relevant interest payment
date (the “Change of Control Payment”). 
Within 30 days following any Change of Control, the Company will mail a
notice to each Holder setting forth the procedures governing the Change of
Control Offer as required by the Indenture.

 

(b)                                 If
the Company or a Restricted Subsidiary of the Company consummates any Asset
Sales, on which the aggregate amount of Excess Proceeds exceeds $25.0 million,
the Company will commence an offer to all Holders of Notes and all holders of
other Indebtedness that is pari passu with
the Notes containing provisions similar to those set forth in the Indenture with
respect to offers to purchase or redeem with the proceeds of sales of assets
(an “Asset Sale Offer”) pursuant to Section 3.09 of the
Indenture to purchase the maximum principal amount of Notes and other pari passu Indebtedness that may be purchased out of the
Excess Proceeds at an offer price in cash in an amount equal to 100% of the
principal amount thereof plus accrued and unpaid interest, if any, to, but
excluding, the date of purchase, in accordance with the procedures set forth in
the Indenture.  With respect to any Asset
Sale Offer, the Excess Proceeds shall be applied (i) first to purchase or
redeem the maximum principal amount of Senior Notes and such other pari passu Indebtedness and (ii) second, if any Excess
Proceeds remain following such purchase or redemption, to purchase or redeem
the maximum principal amount of Notes and such other pari passu
Indebtedness.  To the extent that the
aggregate amount of Senior Subordinated Notes and other pari passu
Indebtedness tendered pursuant to an Asset Sale Offer is less than the Excess
Proceeds, the Company (or such Restricted Subsidiary) may use such deficiency
for any purpose not otherwise prohibited by the Indenture.  If the aggregate principal amount of Notes and
other Indebtedness pari passu with
the Notes tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds, the Trustee will select the Notes and such other Indebtedness pari passu with the Notes to be purchased on a pro  rata
basis.  If the aggregate principal amount
of Senior Subordinated Notes and other Indebtedness pari passu
with the Senior Subordinated Notes tendered into such Asset Sale Offer exceeds
the amount of Excess Proceeds remaining following the purchase in full of all
of the Notes and other Indebtedness pari passu with
the Notes, the Trustee will select the Senior Subordinated Notes and such other
Indebtedness pari passu with the Senior
Subordinated Notes to be purchased on a pro  rata basis. Holders
of Notes that are the subject of an offer to purchase will receive an Asset
Sale Offer from the Company prior to any related purchase date and may elect to
have such Notes

 

A1-4

 

purchased by completing the form entitled “Option of Holder to Elect
Purchase” attached to the Notes.

 

(8)   NOTICE
OF REDEMPTION.  Notice
of redemption will be mailed at least 30 days but not more than 60 days before
the redemption date to each Holder whose Notes are to be redeemed at its
registered address, except that redemption notices may be mailed more than 60
days prior to a redemption date if the notice is issued in connection with a
defeasance of the Notes or a satisfaction or discharge of the Indenture.  Notes in denominations larger than $1,000 may
be redeemed in part but only in whole multiples of $1,000, unless all of the
Notes held by a Holder are to be redeemed. 
On and after the redemption date interest ceases to accrue on Notes or
portions thereof called for redemption.

 

(9)   DENOMINATIONS,
TRANSFER, EXCHANGE. 
The Notes are in registered form without coupons in denominations of
$1,000 and integral multiples of $1,000. 
The transfer of Notes may be registered and Notes may be exchanged as
provided in the Indenture.  The Registrar
and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Company may require a
Holder to pay any taxes and fees required by law or permitted by the
Indenture.  The Company need not exchange
or register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in
part.  Also, the Company need not
exchange or register the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed or during the period between a record date
and the corresponding Interest Payment Date.

 

(10)   PERSONS
DEEMED OWNERS.  The
registered Holder of a Note may be treated as its owner for all purposes.

 

(11) 
AMENDMENT, SUPPLEMENT AND WAIVER.  Subject to certain exceptions, the Indenture,
the Subsidiary Guarantees or the Notes may be amended or supplemented with the
consent of the Holders of at least a majority in principal amount of the then
outstanding Notes including, without limitation, Additional Notes, if any then
outstanding voting as a single class, and any existing Default or Event of
Default or compliance with any provision of the Indenture, the Subsidiary
Guarantees or the Notes may be waived with the consent of the Holders of a
majority in principal amount of the then outstanding Notes and Additional
Notes, if any, voting as a single class. 
Without the consent of any Holder of a Note, the Indenture, the
Subsidiary Guarantees or the Notes may be amended or supplemented to cure any ambiguity,
mistake, defect or inconsistency; to provide for uncertificated Notes in
addition to or in place of Certificated Notes, to provide for the assumption of
the Company’s or any Guarantor’s obligations to Holders of Notes and Subsidiary
Guarantees in the case of a merger or consolidation or sale of all or
substantially all of the Company’s or such Guarantor’s assets, as applicable;
to make any change that would provide any additional rights or benefits to the
Holders of the Notes or that does not materially adversely affect the legal
rights under the Indenture of any such Holder as determined by the Board of
Directors of the Company; to comply with the requirements of the SEC in order
to effect or maintain the qualification of the Indenture under the TIA; to add
additional Guarantees with respect to the Notes or release Guarantors from
Subsidiary Guarantees as provided or permitted by the terms of the Indenture;
to conform the text of the Indenture or the Notes to any provision of the “Description
of Notes” section of the Company’s Prospectus Supplement dated January 23,
2006, relating to the initial offering of the Notes, to the extent that

 

A1-5

 

such provision in that “Description of Notes” was intended to be a
verbatim recitation of a provision of the Indenture, the Subsidiary Guarantees
or the Notes.

 

(12) 
DEFAULTS AND REMEDIES.  Events of Default include:  (i) default for 30 days in the payment
when due of interest with respect to the Notes; (ii) default in payment
when due of principal of, or premium, if any, on the Notes; (iii) failure
by the Company to comply with Sections 4.15 or 5.01 of the
Indenture; (iv) failure by the Company or any of its Restricted
Subsidiaries to comply with Sections 4.07 or 4.09 of the
Indenture for 30 days after notice to comply with such provisions; (v) failure
by the Company for 60 days after notice to the Company to comply with certain
other agreements in the Indenture; (vi) default under certain other
agreements relating to Indebtedness of the Company which default results in the
acceleration of such Indebtedness prior to its express maturity; (vii) certain
final judgments for the payment of money aggregating in excess of $25.0 million
that remain undischarged for is period of 60 days (to the extent not covered by
independent third-party insurance as to which the insurer does not dispute
coverage); (viii) certain events of bankruptcy or insolvency with respect
to the Company or any of its Restricted Subsidiaries that is a Significant
Subsidiary or any group of Restricted Subsidiaries that, when taken together,
would constitute a Significant Subsidiary. 
If any Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% of the aggregate principal amount of the then
outstanding Notes may declare all the Notes to be due and payable.  Notwithstanding the foregoing, in the case of
an Event of Default arising from certain events of bankruptcy or insolvency
with respect to the Company, any Restricted Subsidiary that is a Significant
Subsidiary or any group of Restricted Subsidiaries that, taken together, would
constitute a Significant Subsidiary, all outstanding Notes will become due and
payable without further action or notice. 
Holders may not enforce the Indenture or the Notes except as provided in
the Indenture.  Subject to certain
limitations, the Holders of a majority in principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from Holders of the
Notes notice of any continuing Default or Event of Default, except a Default or
Event of Default relating to the payment of principal or interest, if it
determines that withholding notice is in their interest.  The Holders of a majority in aggregate
principal amount of the Notes then outstanding by notice to the Trustee may on
behalf of the Holders of all of the Notes rescind an acceleration or waive any
existing Default or Event of Default and its consequences under the Indenture
except a continuing Default or Event of Default in the payment of interest or
premium on, or the principal of, the Notes. 
The Company is required to deliver to the Trustee annually a statement
regarding compliance with the Indenture, and the Company is required upon
becoming aware of any Default or Event of Default, to deliver to the Trustee a
statement specifying such Default or Event of Default.

 

(13) 
TRUSTEE DEALINGS WITH COMPANY.  The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the
Company or its Affiliates, and may otherwise deal with the Company or its
Affiliates, as if it were not the Trustee.

 

(14) 
NO RECOURSE AGAINST OTHERS.  A director, officer, employee, incorporator
or stockholder, of the Company or any Subsidiary (other than the Company or a
Guarantor in its capacity as a Stockholder of the Subsidiary), as such, will
not have any liability for any obligations of the Company or the Guarantors
under the Notes, the Subsidiary Guarantees or the Indenture or for any claim
based on, in respect of, or by reason of, such obligations or their

 

A1-6

 

creation.  Each Holder by accepting a Note waives and
releases all such liability.  The waiver
and release are part of the consideration for the issuance of the Notes.

 

(15) 
AUTHENTICATION.  This Note will not be valid until
authenticated by the manual signature of the Trustee or an authenticating
agent.

 

(16) 
ABBREVIATIONS.  Customary abbreviations may be used in the
name of a Holder or an assignee, such as: 
TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT
TEN (= joint tenants with right of survivorship and not as tenants in common),
CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

(17) 
CUSIP NUMBERS.  Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP
numbers in notices of redemption as a convenience to Holders.  No representation is made as to the accuracy
of such numbers either as printed on the Notes or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.

 

The Company
will furnish to any Holder upon written request and without charge a copy of
the Indenture.  Requests may be made to:

 

DRS Technologies, Inc.

5 Sylvan Way

Parsippany, New Jersey 07054 

Attention:  Chief Financial Officer

 

A1-7

 

ASSIGNMENT FORM

 

To assign this
Note, fill in the form below:

 

	
  (I) or (we) assign and
  transfer this Note to:

  	
   

  
	
   

  	
  (Insert assignee’s legal name)

  
	
   

  
	
   

  
	
  (Insert
  assignee’s soc. sec. or tax I.D. no.)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  (Print or type
  assignee’s name, address and zip code)

  
	
   

  
	
  and irrevocably appoint

  	
   

  
	
  to transfer this Note on
  the books of the Company.  The agent
  may substitute another to act for him.

  
	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on the face of this Note)

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee*:

  	
   

  	
   

  
											

 

*                                         Participant in a recognized
Signature Guarantee Medallion Program (or other signature guarantor acceptable
to the Trustee).

 

A-8

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to
elect to have this Note purchased by the Company pursuant to Section 4.10
or 4.15 of the Indenture, check the appropriate box below:

 

	
  o Section 4.10

  	
   

  	
  o Section 4.15

  

 

If you want to
elect to have only part of the Note purchased by the Company pursuant to Section 4.10
or Section 4.15 of the Indenture, state the amount you elect to
have purchased:

 

	
  $                        

  
	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
  (Sign
  exactly as your name appears on the face of this Note)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tax
  Identification No.:

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee*:

  	
   

  	
   

  
												

 

*                                         Participant in a recognized
Signature Guarantee Medallion Program (or other signature guarantor acceptable
to the Trustee).

 

A-9

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*

 

The following
exchanges of a part of this Global Note for an interest in another Global Note
or for a Certificated Note, or exchanges of a part of another Global Note or
Certificated Note for an interest in this Global Note, have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of

  decrease in

  Principal Amount

  at maturity of 

  this Global Note

  	
   

  	
  Amount of increase

  in Principal

  Amount at

  maturity of

  this Global Note

  	
   

  	
  Principal Amount

  at maturity of this

  Global Note

  following such

  decrease

  (or increase)

  	
   

  	
  Signature of

  authorized officer

  of Trustee or

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

* This
schedule should be included only if the Note is issued in global form.

 

A-8

 

EXHIBIT B

 

FORM OF NOTATION OF GUARANTEE

 

For value
received, each Guarantor (which term includes any successor Person under the
Indenture) has, jointly and severally, unconditionally guaranteed, to the
extent set forth in the Indenture and subject to the provisions in the Base
Indenture, dated as of January 31, 2006, between the Company and the Bank
of New York, as trustee (the “Trustee” as supplemented by a Supplemental
Indenture dated as of January 31, 2006 (the “Supplemental Indenture”
and, together with the Base Indenture, the “Indenture”) among DRS
Technologies, Inc., (the “Company”, the Guarantors party thereto
and The Bank of New York, as trustee (the “Trustee”), (a) the due
and punctual payment of the principal of, premium, if any, and interest on, the
Notes, whether at maturity, by acceleration, redemption or otherwise, the due
and punctual payment of interest on overdue principal of and interest on the
Notes, if any, if lawful, and the due and punctual performance of all other
obligations of the Company to the Holders or the Trustee all in accordance with
the terms of the Indenture and (b) in case of any extension of time of
payment or renewal of any Notes or any of such other obligations, that the same
will be promptly paid in full when due or performed in accordance with the terms
of the extension or renewal, whether at stated maturity, by acceleration or
otherwise.  The obligations of the
Guarantors to the Holders of Notes and to the Trustee pursuant to the
Subsidiary Guarantee and the Supplemental Indenture are expressly set forth in Article 11
of the Supplemental Indenture and reference is hereby made to the Indenture for
the precise terms of the Subsidiary Guarantee. 
Each Holder of a Note, by accepting the same, agrees to and shall be
bound by such provisions.

 

Capitalized
terms used but not defined herein have the meanings given to them in the
Supplemental Indenture.

 

[Signature Page Follows]

 

B-1

 

	
   

  	
  [NAME OF GUARANTOR(S)]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

B-2

 

EXHIBIT C

 

FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS

 

SUPPLEMENTAL
INDENTURE (this “Supplemental Indenture”), dated as of                  ,
200   , among                           
(the “Guaranteeing Subsidiary”), a subsidiary of DRS Technologies, Inc.
(or its permitted successor), a Delaware corporation (the “Company”),
the Company, the other Guarantors (as defined in the Indenture referred to
herein) and The Bank of New York, as trustee under the Indenture referred to
below (the “Trustee”).

 

WITNESSETH

 

WHEREAS, the
Company has heretofore executed and delivered to the Trustee a Base Indenture,
dated as of January 31, 2006 (the “Base Indenture”) as supplemented
by a Supplemental Indenture (the “Supplemental Indenture” and, together
with the Base Indenture, the “Indenture”), dated as of January 31,
2006 providing for the issuance of 65/8% Senior Notes due
2016 (the “Notes”);

 

WHEREAS, the
Indenture provides that under certain circumstances the Guaranteeing Subsidiary
shall execute and deliver to the Trustee a supplemental indenture pursuant to
which the Guaranteeing Subsidiary shall unconditionally guarantee all of the
Company’s Obligations under the Notes and the Indenture on the terms and
conditions set forth herein (the “Subsidiary Guarantee”); and

 

WHEREAS,
pursuant to Section 9.01 of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture.

 

NOW THEREFORE,
in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guaranteeing
Subsidiary and the Trustee mutually covenant and agree for the equal and
ratable benefit of the Holders of the Notes as follows:

 

1.                                       CAPITALIZED
TERMS.  Capitalized terms used herein
without definition shall have the meanings assigned to them in the Indenture.

 

2.                                       AGREEMENT
TO GUARANTEE.  The Guaranteeing
Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and
subject to the conditions set forth in the Subsidiary Guarantee and in the
Indenture including but not limited to Article 11 thereof.

 

4.                                       NO
RECOURSE AGAINST OTHERS.  No past,
present or future director, officer, employee, incorporator, stockholder or
agent of the Guaranteeing Subsidiary (other than the Company or a Guarantor in
its capacity as a Stockholder of a Subsidiary), as such, shall have any
liability for any obligations of the Company or any Guaranteeing Subsidiary
under the Notes, any Subsidiary Guarantees, the Indenture or this Supplemental
Indenture or for any claim based on, in respect of or by reason of, such
obligations or their creation.  Each
Holder of the Notes by accepting a Note waives and releases all such liability.  The waiver and release are part of the consideration
for issuance of the Notes.  Such waiver
may not be effective to waive liabilities under the federal securities laws and
it is the view of the SEC that such a waiver is against public policy.

 

C-1

 

5.                                       NEW
YORK LAW TO GOVERN.  THE INTERNAL LAW OF
THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL
INDENTURE BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF
LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION
WOULD BE REQUIRED THEREBY.

 

6.                                       COUNTERPARTS.  The parties may sign any number of copies of
this Supplemental Indenture.  Each signed
copy shall be an original, but all of them together represent the same agreement.

 

7.                                       EFFECT
OF HEADINGS.  The Section headings
herein are for convenience only and shall not affect the construction hereof.

 

8.                                       THE
TRUSTEE.  The Trustee shall not be
responsible in any manner whatsoever for or in respect of the validity or
sufficiency of this Supplemental Indenture or for or in respect of the recitals
contained herein, all of which recitals are made solely by the Guaranteeing
Subsidiary and the Company.

 

C-2

 

IN WITNESS
WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed and attested, all as of the date first above written.

 

Dated:                         ,
20     

 

	
   

  	
  [GUARANTEEING SUBSIDIARY]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DRS TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [EXISTING GUARANTORS]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF
  NEW YORK

  as Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]