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Unassociated Document

    
      

         

        FIRST
          AMENDED AND RESTATED

        SENIOR
          CREDIT AGREEMENT

         

        DATED
          AS OF MAY 24, 2007

         

        AMONG

         

        UNIT
          CORPORATION,

        SUPERIOR
          PIPELINE COMPANY, L.L.C.,

        UNIT
          DRILLING COMPANY,

        UNIT
          PETROLEUM COMPANY,

        and

        UNIT
          TEXAS DRILLING, L.L.C.,

         

        AS
          BORROWERS,

         

        THE
          LENDERS,

         

        BANK
          OF OKLAHOMA, NATIONAL ASSOCIATION,

        AS
          ADMINISTRATIVE AGENT FOR THE LENDERS,

        and
          as

        CO-ARRANGER

         

        BANK
          OF AMERICA, NATIONAL ASSOCIATION,

        CO-ARRANGER

         

        BMO
          CAPITAL MARKETS FINANCING, INC.,

        SYNDICATION
          AGENT

         

        and

         

        COMPASS
          BANK,

        DOCUMENTATION
          AGENT

         

        
          
            
              
                	
                      	 	 

              

               

            

            
            

          

          
            
            

            
            

          

          
            
            

            
            

          

        

        TABLE
          OF CONTENTS

         

         

        
          	Article I 
                  DEFINITIONS	
                   2

                
	    
                  1.1	 Defined
                  Terms 	
                   2

                
	    
                  1.2	 Exhibits
                  and Schedules; Additional Definitions 	
                   15

                
	    
                  1.3	 Reference
                  and Titles	
                   15

                
	
                      
                    1.4

                	 Accounting
                  Terms and Determinations 	
                   16

                
	    
                  1.5	 Calculations
                  and Determinations 	
                   16

                
	    
                  1.6	 Joint
                  Preparation; Construction of Indemnities and Releases 	
                   16

                
	 	 	 
	
                  Article
                    II  THE CREDITS 

                	
                   16

                
	     2.1	 Commitments	
                   16

                
	    
                  2.2	 Required
                  Payments; Termination 	
                   16

                
	    
                  2.3 	 Ratable
                  Loans 	
                   17

                
	    
                  2.4	 Types
                  of Advances 	
                   17

                
	    
                  2.5	 Facility
                  Fee; Initial Aggregate Commitment; Maximum Credit Amount; 	 
	 	 Commitment
                  Fee Rate 	
                   17

                
	    
                  2.6	 Borrowing
                  Base 	
                   17

                
	    
                  2.7	 Minimum
                  Amount of Each Advance 	
                   21

                
	    
                  2.8	 Principal
                  Payments 	
                   21

                
	    
                  2.9	 Method
                  of Selecting Loan Types and Interest Periods for New Advances 	
                   21

                
	    
                  2.10	 Conversion
                  and Continuation of Outstanding Advances 	
                   22

                
	    
                  2.11	 Changes
                  in Interest Rate 	
                   22

                
	 
                     2.12	 Rates
                  Applicable After Default 	
                   23

                
	    
                  2.13	 Method
                  of Payment 	
                   23

                
	    
                  2.14	 Evidence
                  of Indebtedness 	
                   24

                
	    
                  2.15	 Telephonic
                  Notices	
                   24

                
	     2.16	 Interest
                  Payment Dates 	
                   24

                
	    
                  2.17	 Notification
                  of Advances, Interest Rates, and LC Requests 	
                   25

                
	    
                  2.18	 Non-Receipt
                  of Funds by the Administrative Agent 	
                   25

                
	    
                  2.19	 Letters
                  of Credit 	
                   25

                
	    
                  2.20	 Additional
                  Agency Fees 	
                   29

                
	    
                  2.21	 Loan
                  Purposes 	
                   29

                
	 	 	 
	
                  Article
                    III  YIELD PROTECTION; TAXES 

                	
                   29

                
	    
                  3.1	 Yield
                  Protection 	
                   29

                
	    
                  3.2	 Changes
                  in Capital Adequacy Regulations 	
                   30

                
	    
                  3.3	 Taxes	
                   30

                
	    
                  3.4	 Availability
                  of Eurodollar Advances 	
                   31

                
	    
                  3.5	 Funding
                  Indemnification 	
                   32

                
	    
                  3.6	 Replacement
                  Lenders	
                   32

                
	    
                  3.7	 Extension
                  of Maturity Date 	
                   33

                
	 	 	 
	Article
                  IV CONDITIONS PRECEDENT	
                   35

                
	    
                  4.1	 Initial
                  Credit Extension 	
                   35

                

        

         

         

        
          
            i

          

          
            
            

            
            

          

          
            
            

          

        

         

        
          
            	    
                    4.2	 Each
                    Credit Extension	
                    36

                  
	    
                    	 	
                     

                  
	Article
                    V REPRESENTATIONS AND WARRANTIES	
                    37

                  
	    
                    5.1	 Existence
                    and Good Standing 	
                    37

                  
	    
                    5.2	 Authorization
                    and Validity 	
                     37

                  
	    
                    5.3	 No
                    Conflict; Government Consent 	
                     37

                  
	    
                    5.4	 Financial
                    Statements 	
                     38

                  
	    
                    5.5	 Material
                    Adverse Effect 	
                     38

                  
	    
                    5.6	 Taxes	
                     38

                  
	    
                    5.7	 Litigation
                    and Contingent Obligations 	
                     38

                  
	    
                    5.8	 Subsidiaries	
                     38

                  
	    
                    5.9	 ERISA 	
                     39

                  
	    
                    5.10	 Accuracy
                    of Information 	
                     39

                  
	    
                    5.11	 Margin
                    Stock 	
                     39

                  
	    
                    5.12	 Material
                    Agreements 	
                     39

                  
	    
                    5.13	 Compliance
                    With Laws 	
                     39

                  
	    
                    5.14	 Ownership
                    of Properties 	
                     39

                  
	    
                    5.15	 Plan
                    Assets; Prohibited Transactions 	
                     40

                  
	    
                    5.16	 Environmental
                    Matters 	
                     40

                  
	    
                    5.17	 Names
                    and Places of Business 	
                     41

                  
	    
                    5.18	 Possession
                    of Franchises, Licenses 	
                    41

                  
	  
                      5.19	 Rate
                    Management Transactions 	
                     42

                  
	    
                    5.20	 Insurance	
                     42

                  
	    
                    5.21	 No
                    Default 	
                     42

                  
	 	 	 
	Article
                    VI  AFFIRMATIVE COVENANTS	
                     42

                  
	    
                    6.1	 Reports	
                     42

                  
	    
                    6.2	 Use
                    of Proceeds 	
                     44

                  
	    
                    6.3	 Notice
                    of Default 	
                     44

                  
	    
                    6.4	 Conduct
                    of Business 	
                     44

                  
	    
                    6.5	 Taxes 	
                     44

                  
	    
                    6.6	 Insurance	
                     45

                  
	    
                    6.7	 Compliance
                    With Laws 	
                     45

                  
	    
                    6.8	 Maintenance
                    of Properties 	
                     45

                  
	    
                    6.9	 Inspection	
                     45

                  
	    
                    6.10	 Deposit
                    Accounts/Setoff 	
                     45

                  
	    
                    6.11	 Ratable
                    Payments 	
                     46

                  
	    
                    6.12	 Environmental
                    Indemnities 	
                     46

                  
	 	 	 
	Article
                    VII  NEGATIVE COVENANTS 	
                     47

                  
	    
                    7.1	 Dividends	
                     47

                  
	    
                    7.2 	 Indebtedness	
                     48

                  
	    
                    7.3	 Limitation
                    on Fundamental Changes 	
                     49

                  
	    
                    7.4	 Sale
                    of Assets 	
                     49

                  
	    
                    7.5	 Investments
                    and Acquisitions 	
                     50

                  
	    
                    7.6	 Liens	
                     51

                  
	    
                    7.7	 Affiliates	
                     52

                  

          

        

         

        
          
            ii

          

          
            
            

            
            

          

          
            
            

          

        

         

        
           

          
            
              	    
                      7.8	 Sale
                      and Leaseback Transactions and other Off-Balance Sheet Liabilities 	
                      52

                    
	    
                      7.9	 Contingent
                      Obligations 	
                       52

                    
	    
                      7.10	 Financial
                      Contracts 	
                       53

                    
	    
                      7.11	 Letters
                      of Credit 	
                       54

                    
	     7.12	 Prohibited
                      Contracts 	
                       54

                    
	    
                      7.13	 Negative
                      Pledge 	
                       54

                    
	 	 	 
	
                      Article
                        VIII  FINANCIAL COVENANTS

                    	
                       54

                    
	    
                      8.1	 Current
                      Ratio 	
                       54

                    
	    
                      8.2	 Leverage
                      Ratio 	
                       54

                    
	    
                      8.3	 Minimum
                      Consolidated Net Worth 	
                       54

                    
	 	 	 
	
                      Article
                        IX  GUARANTEES

                    	
                       54

                    
	    
                      9.1	 Guarantees	
                       54

                    
	    
                      9.2	 Negative
                      Pledge/Production Proceeds 	
                       55

                    
	 	 	 
	Article
                      X  EVENTS OF DEFAULTS	
                       55

                    
	 	 	 
	Article
                      XI ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES	
                       57

                    
	    
                      11.1	 Acceleration	
                       57

                    
	    
                      11.2	 Amendments	
                       58

                    
	    
                      11.3	 Preservation
                      of Rights 	
                       58

                    
	 
                      	 	
                       

                    
	
                      Article
                        XII  GENERAL PROVISIONS

                    	
                       59

                    
	    
                      12.1	 Survival
                      of Agreements 	
                       59

                    
	    
                      12.2	 Governmental
                      Regulation 	
                       59

                    
	    
                      12.3	 Headings	
                       59

                    
	    
                      12.4	 Entire
                      Agreement 	
                       59

                    
	    
                      12.5	 Several
                      Obligations; Benefits of this Agreement 	
                       59

                    
	    
                      12.6	 Expenses;
                      Indemnification 	
                       59

                    
	    
                      12.7	 Severability
                      of Provisions 	
                       60

                    
	    
                      12.8	 Nonliability
                      of Lenders 	
                       60

                    
	    
                      12.9	 Confidentiality	
                       61

                    
	    
                      12.10	 Disclosure	
                       61

                    
	    
                      12.11	 Place
                      of Payment 	
                       61

                    
	    
                      12.12	 Interest	
                       61

                    
	    
                      12.13	 Automatic
                      Debit of Borrowers’ Operating Account 	
                       62

                    
	    
                      12.14	 Exceptions
                      to Covenants 	
                       62

                    
	    
                      12.15	 Conflict
                      with Other Loan Documents 	
                       62

                    
	    
                      12.16	 Lost
                      Documents 	
                       63

                    
	 	 	 
	
                      Article
                        XIII THE ADMINISTRATIVE AGENT 

                    	
                       63

                    
	    
                      13.1	 Appointment;
                      Nature of Relationship 	
                       63

                    
	    
                      13.2	 Powers	
                       63

                    
	    
                      13.3	 General
                      Immunity 	
                       63

                    
	    
                      13.4	 No
                      Responsibility for Loans, Recitals 	
                       64

                    
	    
                      13.5	 Action
                      on Instructions of Lenders 	
                       64

                    

            

          

        

         

         

        
          
            iii

          

          
            
            

            
            

          

          
            
            

          

        

         

        
           

          
            
              	    
                      13.6	 Employment
                      of Administrative Agents; Counsel; Reliance 	
                      64

                    
	    
                      13.7	 Administrative
                      Agent's Reimbursement and Indemnification 	
                       65

                    
	    
                      13.8	 Notice
                      of Default 	
                       65

                    
	    
                      13.9	 Rights
                      as a Lender 	
                       65

                    
	    
                      13.10	 Lender
                      Credit Decision 	
                       65

                    
	    
                      13.11	 Successor
                      Administrative Agent 	
                      66

                    
	    
                      13.12	 Syndication
                      Agent 	
                       66

                    
	    
                      13.13	 Delegation
                      to Affiliates 	
                       66

                    
	 	 	 
	
                      Article
                        XIV BENEFIT OF AGREEMENT; ASSIGNMENTS;
                        PARTICIPATIONS

                    	
                       67

                    
	    
                      14.1	 Successors
                      and Assigns 	
                       67

                    
	    
                      14.2	 Participations
                      	
                       67

                    
	    
                      14.3	 Assignments
                      	
                       68

                    
	    
                      14.4	 Dissemination
                      of Information 	
                       69

                    
	     14.5	 Tax
                      Treatment 	
                       70

                    
	    
                      14.6	 Procedure
                      for Increases and Addition of New Lenders 	
                       70

                    
	 	 	 
	Article
                      XV  NOTICES/CONSENTS	
                       70

                    
	    
                      15.1	 Notices	
                       70

                    
	    
                      15.2	 Change
                      of Address	
                       70

                    
	    
                      15.3	 Consent
                      to Amendments	
                       70

                    
	    
                      15.4	 USA
                      PATRIOT Act Notice 	
                       71

                    
	 	 	 
	
                      Article
                        XVI  COUNTERPARTS

                    	
                       71

                    
	 	 	 
	Article
                      XVII CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY
                      	 
	TRIAL	
                       71

                    
	    
                      17.1	 CHOICE
                      OF LAW 	
                       71

                    
	    
                      17.2	 CONSENT
                      TO JURISDICTION 	
                       72

                    
	    
                      17.3	 NO
                      ORAL AGREEMENTS 	
                       72

                    
	    
                      17.4	 EXCULPATION
                      PROVISIONS 	
                       72

                    
	    
                      17.5	 WAIVER
                      OF JURY TRIAL, PUNITIVE DAMAGES 	
                       73

                    

            

          

        

         

         

        
          
            iv

          

          
            
            

            
            

          

          
            
            

          

        

        Exhibits

         

        Exhibit
          A - Form
          of
          Promissory Note

        Exhibit
          B - Compliance
          Certificate

        Exhibit
          C - Form
          of
          Assignment

        Exhibit
          D - Form
          of
          Commitment Increase/Additional Lender

        Exhibit
          E - Form
          of
          Subsidiary Guaranty

         

        Schedules

         

        Schedule
          1 - Pricing
          Schedule

        Schedule
          2 - Lenders
          Schedule

        Schedule
          3 - Disclosure
          Schedule

        Schedule
          4 - Environmental
          Matters

        Schedule
          5 - Rate
          Management Transactions

        Schedule
          6 - Excluded
          Accounts

        Schedule
          7  - Contingent
          Obligations

         

        

        
          
            v

          

          
            
            

            
            

          

          
            
            

          

        

         

        FIRST
          AMENDED AND RESTATED

        SENIOR
          CREDIT AGREEMENT

         

        THIS
          FIRST AMENDED AND RESTATED SENIOR CREDIT AGREEMENT, dated effective as
          of May
          24, 2007 ("Agreement"), is entered into among UNIT CORPORATION, a Delaware
          corporation ("Unit"), SUPERIOR PIPELINE COMPANY, L.L.C., an Oklahoma limited
          liability company, UNIT DRILLING COMPANY, an Oklahoma corporation, UNIT
          PETROLEUM COMPANY, an Oklahoma corporation, and UNIT TEXAS DRILLING, L.L.C.,
          an
          Oklahoma limited liability company, each with its principal place of business
          at
          7130 South Lewis, Suite 100, Tulsa, Oklahoma 74136 (collectively the
          "Borrowers") and BANK OF OKLAHOMA, NATIONAL ASSOCIATION ("BOk"), as co-arranger,
          BANK OF AMERICA, N.A. ("B of A"), as co-arranger, BMO CAPITAL MARKETS FINANCING,
          INC. ("BMO"), as syndication agent, and COMPASS BANK ("Compass"), as
          documentation agent, the lenders now or hereafter signatories hereto from
          time
          to time (the lenders currently signatory parties hereto and such additional
          lenders hereafter becoming signatory parties hereto from time to time,
          each
          being sometimes referred to herein, individually, as a "Lender," and
          collectively as the "Lenders"); and BOk as administrative agent for the
          Lenders
          (in such capacity, herein referred to as the "Administrative
          Agent").

         

        RECITALS

         

        A. The
          Borrowers, inter
          alia,
          BOk, as
          the administrative agent for the Existing Lenders (defined herein), and
          the
          financial institutions named and defined therein as lenders signatory parties
          thereto (collectively, the "Existing Lenders") are parties to that certain
          Credit Agreement dated as of January 30, 2004 (the "Existing Credit Agreement"),
          pursuant to which the Existing Lenders provided certain loans and extensions
          of
          revolving credit to the Borrowers signatory parties thereto (all indebtedness
          arising and all obligations, including contingent liabilities on letters
          of
          credit issued pursuant to the Existing Credit Agreement are collectively
          called
          the "Existing Indebtedness"); and

         

        B. Unit
          has
          requested the Co-Arrangers to (i) arrange for the refinancing of any Existing
          Indebtedness and the commitments issued in the Existing Credit Agreement,
          and
          (ii) provide financing for general working capital requirements for (a)
          exploration, development, production and acquisition of Oil and Gas Properties,
          (b) contract drilling services, (c) gas gathering systems, gas processing
          plants
          and other midstream assets, (d) issuance of standby Letters of Credit;
          and (e)
          general corporate purposes of the Borrowers 

         

        C. As
          a
          condition to obtaining the financing contemplated hereby, Borrowers have
          agreed
          to refinance any Existing Indebtedness in full with funds to be made available
          under this Agreement; and

         

        D. The
          Lenders hereto desire to appoint BOk as Administrative Agent for the Lenders,
          and Borrowers desire to obtain the Commitments (i) to refinance any Existing
          Indebtedness, and (ii) for other purposes permitted by the terms of this
          Agreement; and

         

        E. After
          giving effect to the refinancing of any Existing Indebtedness and extinguishment
          of the commitments of the Existing Lenders and the replacement thereof
          by the
          Commitments issued pursuant to this Agreement, the several 

         

        
          
            
            

          

          
            
            

            
            

          

          
            
            
(but
            not
            joint) Commitment (as herein defined) of each Lender hereunder will be
            as set
            forth on the Lenders Schedule annexed hereto as Schedule 2; and

        

         

        F. Pursuant
          to a separate agreement among BOk and Borrowers, BOk and B of A have been
          appointed Co-Arrangers, BMO has been appointed Syndication Agent and Compass
          Bank has been appointed Documentation Agent for this Agreement;

         

        NOW,
          THEREFORE, the parties hereto agree as follows:

         

        ARTICLE
          I

        DEFINITIONS

         

        1.1  Defined
          Terms.
          As used
          in this Agreement, the following terms have the meaning specified below
          or in
          the sections and subsections referred to below:

         

        "Acquisition"
          means any transaction, or any series of related transactions, consummated
          on or
          after the date of this Agreement, by which the Borrowers or any of their
          Subsidiaries (i) acquires, by any means, any going business or all or
          substantially all of the assets of any Person, (ii) directly or indirectly
          acquires (in one transaction or as the most recent transaction in a series
          of
          transactions) at least a majority (in number of votes) of the securities
          of a
          corporation which have ordinary voting power for the election of directors
          (other than securities having such power only by reason of the happening
          of a
          contingency) or a majority (by percentage or voting power) of the outstanding
          ownership interests of a partnership or limited liability company, or (iii)
          acquire Oil and Gas Properties and ancillary assets, gas gathering systems
          and/or gas processing plants or drilling rigs and ancillary
          equipment.

         

        "Administrative
          Agent" means BOk in its capacity as contractual administrative agent of
          the
          Lenders pursuant to Article XIII, and any successor Administrative Agent
          under
          Article XIII.

         

        "Advance"
          means a borrowing under Article II, (i) made by the Lenders on the same
          Borrowing Date, or (ii) converted or continued by the Lenders on the same
          date
          of conversion or continuation, consisting, in either case, of the aggregate
          amount of the several Loans of the same type (either Floating Rate Advance
          or
          Eurodollar Advance) and, in the case of Eurodollar Loans, for the same
          Interest
          Period.

         

        "Affiliate"
          of any Person means any other Person directly or indirectly controlling,
          controlled by or under common control with such Person. A Person will be
          deemed
          to control another Person if the controlling Person owns 10% or more of
          any
          class of voting securities (capital stock, general or limited partnership
          units
          or interests, limited liability company membership interests or association
          or
          other business entity shares, participations, rights or other equivalent
          ownership interests, however designated) of the controlled Person or possesses,
          directly or indirectly, the power to direct or cause the direction of the
          management or policies of the controlled Person, whether through ownership
          of
          stock, by contract or otherwise. 

         

        "Agent
          Fee Letter" means the separate letter agreement between and among the Borrowers
          and the Administrative Agent setting forth the annual agency fee
          arrangements.

         

        
          
            2

          

          
            
            

            
            

          

          
            
            

          

        

        "Aggregate
          Commitment" means the total of the Commitments of all Lenders, as adjusted
          from
          time to time pursuant to the terms hereof; provided that the Aggregate
          Commitment will never exceed the lesser of (i) the Borrowing Base, or (ii)
          the
          Maximum Credit Amount.

         

        "Aggregate
          Outstanding Credit Exposure" means, at any time, the aggregate of the
          Outstanding Credit Exposure of all the Lenders.

         

        "Agreement"
          means this Credit Agreement, as it may be amended, modified, supplemented
          or
          restated and in effect from time to time.

         

        "Alternate
          Base Rate" means, for any day, a rate of interest per annum equal to the
          higher
          of (i) the Prime Rate for such day or (ii) the sum of the Federal Funds
          Effective Rate for such day plus one-half of one percent per annum (0.50%),
          based on the number of days elapsed in an actual 365-366 day year.

         

        "Applicable
          Margin" means the percentage rate per annum set forth in the Pricing
          Schedule.

         

        "Authorized
          Officer" means any of the president, the chief financial officer, any vice
          president, the treasurer or any assistant treasurer of the Borrowers, acting
          singly.

         

        "Available
          Aggregate Commitment" means, at any time, the Aggregate Commitment then
          in
          effect minus the Aggregate Outstanding Credit Exposure at such
          time.

         

        "B
          of A"
          means Bank of America, N.A., its successor and permitted assigns. 

         

        "BMO"
          means BMO Capital Markets Financing, Inc., its successors and permitted
          assigns.

         

        "BOk"
          means Bank of Oklahoma, National Association, and its successors and permitted
          assigns.

         

        "BOKF"
          means Bank of Oklahoma Financial Corporation and its successors.

         

        "Borrowers"
          means Unit, and its existing Material Subsidiaries, and their respective
          successors and assigns, including any receiver, trustee or
          debtor-in-possession.

         

        "Borrowing
          Base" means, at the particular time in question, either the amount provided
          for
          in Section 2.6.1 or the amount otherwise determined in accordance with
          the
          remaining provisions of Section 2.6.

         

        "Borrowing
          Base Properties" means the Oil and Gas Properties and Superior Cash Flow
          evaluated by Lenders for purposes of establishing the Borrowing
          Base.

         

        "Borrowing
          Base Usage Percentage" means, for any day, the percentage equal to the
          quotient
          of (i) the Aggregate Outstanding Credit Exposure on such day, divided by
          (ii)
          the Borrowing Base as initially set by the Lenders 

         

        
          
            3

          

          
            
            

            
            

          

          
            
            
under
            Section 2.6.1 (and as subsequently set by the Lenders under Section 2.6.2
            or
            other provisions of Section 2.6 (excluding Section 2.6.3)).

        

         

        "Borrowing
          Date" means a date on which an Advance is made hereunder.

         

        "Borrowing
          Notice" is defined in Section 2.9.

         

        "Business
          Day" means (i) with respect to any borrowing, payment or rate selection
          of
          Eurodollar Advances, a day (other than a Saturday or Sunday) on which banks
          generally are open in Tulsa, Oklahoma, and New York City, New York, for
          the
          conduct of substantially all of their commercial lending activities, interbank
          wire transfers can be made on the Fedwire system and dealings in United
          States
          dollars are carried on in the London interbank market and (ii) for all
          other
          purposes, a day (other than a Saturday or Sunday) on which banks generally
          are
          open in Tulsa, Oklahoma, for the conduct of substantially all of their
          commercial lending activities and interbank wire transfers can be made
          on the
          Fedwire system.

         

        "Capitalized
          Lease" of a Person means any lease of Property by such Person as lessee
          which
          would be capitalized on a balance sheet of such Person prepared in accordance
          with GAAP.

         

        "Capitalized
          Lease Obligations" of a Person means the amount of the obligations of such
          Person under Capitalized Leases which would be shown as a liability on
          a balance
          sheet of such Person prepared in accordance with GAAP.

         

        "Cash
          Equivalent Investments" means (i) short-term obligations of, or fully guaranteed
          by, the United States of America, (ii) commercial paper rated A-1 or better
          by
          S&P or P-1 or better by Moody's, (iii) demand deposit accounts maintained
          in
          the ordinary course of business, and (iv) certificates of deposit issued
          by and
          time deposits with commercial banks (whether domestic or foreign) having
          capital
          and surplus in excess of $100,000,000; provided in each case that the same
          provides for payment of both principal and interest (and not principal
          alone or.
          interest alone) and is not subject to any contingency regarding the payment
          of
          principal or interest.

         

        "Change
          in Control" means the acquisition by any Person, or two or more Persons
          acting
          in concert, of beneficial ownership (within the meaning of Rule 13d-3 of
          the
          Securities and Exchange Commission under the Securities Exchange Act of
          1934) of
          30% or more of the outstanding shares of voting stock of the
          Borrowers.

         

        "Code"
          means the Internal Revenue Code of 1986, as amended, reformed or otherwise
          modified from time to time.

         

        "Commitment"
          means, for each Lender, the obligation of such Lender to make Loans to,
          and
          participate in LCs issued on the application of, the Borrowers in an aggregate
          amount not exceeding the amount set forth on the Lenders Schedule or as
          set
          forth in any Notice of Assignment relating to any assignment that has become
          effective under Section 14.3.2, as such amount may be modified from time
          to time
          under the terms hereof; provided that no Lender's Commitment will ever
          exceed
          the lesser of such Lender's Pro Rata Share of (i) the Borrowing Base, or
          (ii)
          Maximum Credit Amount.

         

        
          
            4

          

          
            
            

            
            

          

          
            
            

          

        

        "Commitment
          Fee Rate" means, at any time, the per annum percentage rate at which commitment
          fees are accruing on the Available Aggregate Commitment under Section 2.5.3
          at
          such time at the rate set forth in the Pricing Schedule.

         

        "Consolidated
          EBITDA" means Consolidated Net Income plus, to the extent deducted from
          revenues
          in determining Consolidated Net Income, (i) Consolidated Interest Expense,
          (ii)
          expense for income and income based taxes paid or accrued, (iii) depreciation,
          depletion, amortization and impairment, including without limitation, impairment
          of goodwill, and (iv) any non-cash items associated with mark to market
          accounting, all calculated for the Borrowers and their Subsidiaries on
          a
          consolidated basis.

         

        "Consolidated
          Interest Expense" means, for any period with respect to any Person, the
          amount
          which, in conformity with GAAP, would be set forth opposite the caption
          "interest expense" or any like caption (including without limitation, imputed
          interest included in payments under any Capitalized Lease) on a consolidated
          income statement of such Person and the Subsidiaries for such period excluding
          the amortization of any original issue discount.

         

        "Consolidated
          Net Income" means, with reference to any period, the net income (or loss)
          of the
          Borrowers and their Subsidiaries calculated on a consolidated basis for
          such
          period.

         

        "Consolidated
          Net Worth" means the sum of (a) the par value of Unit's consolidated capital
          stock (excluding treasury stock), plus (b) Unit's consolidated additional
          paid-in capital, plus (c) the amount of Unit's consolidated retained earnings
          plus, to the extent deducted from retained earnings, impairment of its
          drilling
          rigs, Oil and Gas Properties and midstream assets; excluding, however,
          from such
          calculations assets and liabilities representing a valuation account arising
          from the application of SFAS 133, or 143 as applicable, subsequent to March
          31,
          2007. 

         

        "Contingent
          Obligation" of a Person means any agreement, undertaking or arrangement
          by which
          such Person assumes, guarantees, endorses, contingently agrees to purchase
          or
          provide funds for the payment of, or otherwise becomes or is contingently
          liable
          on, the obligation or liability of any other Person, or agrees to maintain
          the
          net worth or working capital or other financial condition of any other
          Person,
          or otherwise assures any creditor of such other Person against loss, including,
          without limitation, any comfort letter, take-or-pay contract or the obligations
          of any such Person as general partner of a partnership with respect to
          the
          liabilities of the partnership.

         

        "Contingent
          Obligations Schedule" means Schedule 7.

         

        "Controlled
          Group" means all members of a controlled group of corporations or other
          business
          entities and all trades or businesses (whether or not incorporated) under
          common
          control which, together with the Borrowers or any of their respective
          Subsidiaries, are treated as a single employer under Section 414 of the
          Code.

         

        "Conversion/Continuation
          Notice" is defined in Section 2.10.

         

        "Credit
          Extension" means the making of an Advance or the issuance of a LC
          hereunder.

         

        
          
            5

          

          
            
            

            
            

          

          
            
            

          

        

        "Credit
          Extension Date" means the Borrowing Date for an Advance or the issuance
          date for
          a LC.

         

        "Credit
          Parties" means, collectively, the Borrowers and any Subsidiary Guarantors,
          and
          "Credit Party" means any one of them.

         

        "Default"
          means an event described in Article X prior to the lapse of any grace or
          curative period or the giving of notice, or both, as applicable.

         

        "Determination
          Date" is defined in Section 2.6.2.

         

        "Disclosure
          Schedule" means Schedule 3.

         

        "Engineered
          Value" means, at the time of determination, the future net revenues of
          the oil
          and gas portion of the Borrowing Base Properties calculated by Administrative
          Agent and the Required Lenders using the pricing parameters and discount
          rate
          currently being used by Administrative Agent.

         

        "Engineering
          Report" means the Initial Engineering Report and each engineering report
          delivered pursuant to Section 6.1(vii).

         

        "Environmental
          Laws" means any and all federal, state, local and foreign statutes, laws,
          judicial decisions, regulations, ordinances, rules, judgments, orders,
          decrees,
          plans, injunctions, permits, concessions, grants, franchises, licenses,
          agreements and other governmental restrictions relating to (i) the protection
          of
          the environment, (ii) the effect of the environment on human health, (iii)
          emissions, discharges or releases of pollutants, contaminants, hazardous
          substances or wastes into surface water, ground water or land, or (iv)
          the
          manufacture, processing, distribution, use, treatment, storage, disposal,
          transport or handling of pollutants, contaminants, hazardous substances
          or
          wastes or the clean-up or other remediation thereof.

         

        "Equity"
          means shares of capital stock or a partnership, profits, capital, member
          or
          other equity interest, or options, warrants or any other rights to substitute
          for or otherwise acquire the capital stock or a partnership, profits, capital,
          member or other equity interest of any Person.

         

        "ERISA"
          means the Employee Retirement Income Security Act of 1974, as amended from
          time
          to time, and any rule or regulation issued thereunder.

         

        "Eurodollar
          Advance" means an Advance which, except as otherwise provided in Section
          2.12,
          bears interest at the applicable Eurodollar Rate.

         

        "Eurodollar
          Base Rate" means, with respect to a Eurodollar Advance for the relevant
          Interest
          Period: (a) the interest rate per annum equal to the rate determined by
          the
          Administrative Agent to be the offered rate that appears on the page of
          the
          Telerate Screen that displays an average British Bankers' Association Interest
          Settlement Rate (such page currently being page number 3750) for deposits
          in
          U.S. dollars (for delivery on the first day of such Interest Period) as
          reported
          by any generally recognized financial information service, determined as
          of
          approximately 11:00 a.m. (London time) three (3) Business Days prior to
          the
          first day of such Interest Period, and having a term equivalent to such
          Interest
          Period, provided that, in the event the rate referenced in subsection (a)
          does
          not appear on such page or 

         

        
          
            6

          

          
            
            

            
            

          

          
            
            
such
            service is not available to the Administrative Agent, the applicable
            Eurodollar
            Base Rate for the relevant Interest Period will instead be the rate determined
            by the Administrative Agent to be the rate at which BOk or one of its
            Affiliate
            banks offers to place deposits in U.S. dollars with first-class banks
            in the
            London interbank market at approximately 11:00 a.m. (London time) three
            (3)
            Business Days prior to the first day of such Interest Period, in the
            approximate
            amount of BOk's relevant Eurodollar Loan and having a maturity equal
            to such
            Interest Period.

        

         

        "Eurodollar
          Loan" means a Loan which, except as otherwise provided in Section 2.12,
          bears
          interest at the applicable Eurodollar Rate.

         

        "Eurodollar
          Rate" means, with respect to any Interest Period, an interest rate per
          annum
          equal to the sum of (i) the quotient of (a) the Eurodollar Base Rate applicable
          to such Interest Period, divided by (b) one minus the Reserve Requirement
          (expressed as a decimal) applicable to such Interest Period, plus (ii)
          the
          Applicable Margin, based on a 360 day year.

         

        "Event
          of
          Default" means any event described in Article X 

         

        "Excluded
          Accounts" has the meaning assigned in Section 6.10.

         

        "Excluded
          Taxes" means, in the case of each Lender and the Administrative Agent,
          taxes
          imposed on its overall net income, and franchise taxes imposed on it, by
          (i) the
          jurisdiction under the laws of which such Lender or the Administrative
          Agent is
          incorporated or organized or (ii) the jurisdiction in which the Administrative
          Agent's or such Lender's principal executive office is located.

         

        "Existing
          Credit Agreement" has the meaning assigned to such term in Recital
          A.

         

        "Existing
          Indebtedness " has the meaning assigned to such term in Recital A.

         

        "Existing
          Subsidiaries" means Superior Pipeline Company, L.L.C., an Oklahoma limited
          liability company, Unit Drilling Company, an Oklahoma corporation, Unit
          Petroleum Company, an Oklahoma corporation, Unit Energy Canada, Inc., an
          Alberta
          Canada corporation, and Unit Texas Drilling, L.L.C., an Oklahoma limited
          liability company, and other Subsidiaries listed on Schedule 3.

         

        "Facility
          Termination Date" means the date which is five (5) years from the date
          of this
          Agreement, or any earlier date on which the Aggregate Commitment is reduced
          to
          zero or otherwise terminated pursuant to the terms of this
          Agreement.

         

        "Federal
          Funds Effective Rate" means, for any day, an interest rate per annum equal
          to
          the weighted average of the rates on overnight Federal funds transactions
          with
          members of the Federal Reserve System arranged by Federal funds brokers
          on such
          day, as published for such day (or, if such day is not a Business Day,
          for the
          immediately preceding Business Day) by the Federal Reserve Bank of New
          York, or,
          if such rate is not so published for any day which is a Business Day, the
          average of the quotations at approximately 10:00 a.m. (Tulsa time) on such
          day
          on such transactions received by the Administrative Agent from three Federal
          funds brokers of recognized standing selected by the Administrative Agent
          in its
          sole discretion.

         

        
          
            7

          

          
            
            

            
            

          

          
            
            

          

        

        "Financial
          Contract" of a Person means (i) any exchange-traded or over-the-counter
          futures,
          forward, swap, hedge or option contract or other financial instrument with
          similar characteristics, and (ii) any Rate Management Transaction.

         

        "Floating
          Rate" means, for any day, a rate per annum equal to the Alternate Base
          Rate for
          such day, in each case changing when and as the Alternate Base Rate
          changes.

         

        "Floating
          Rate Advance" means an Advance which, except as otherwise provided in Section
          2.12, bears interest at the Floating Rate.

         

        "Floating
          Rate Loan" means a Loan which, except as otherwise provided in Section
          2.12,
          bears interest at the Floating Rate.

         

        "GAAP"
          means generally accepted accounting principles as in effect from time to
          time in
          the United States, applied in a manner consistent with that used in preparing
          the financial statements referred to in Section 5.4.

         

        "Highest
          Lawful Rate" means, on any day with respect to each Lender to whom Obligations
          are owed, the maximum non-usurious rate of interest that such Lender is
          permitted under applicable law to contract for, take, charge or receive
          with
          respect to such Obligations for such day. All determinations herein of
          the
          Highest Lawful Rate, or of any interest rate determined by reference to
          the
          Highest Lawful Rate, will be made separately for each Lender as appropriate
          to
          assure that the Loan Documents are not construed to obligate any Person
          to pay
          interest to any Lender at a rate in excess of the Highest Lawful Rate applicable
          to such Lender.

         

        "Hydrocarbon
          Interests" shall mean all rights, titles, interests and estates now or
          hereafter
          acquired in and to (i) Hydrocarbons and (ii) oil and gas leases, oil, gas
          and
          mineral leases, or other liquid or gaseous Hydrocarbon leases, mineral
          fee
          interests, overriding royalty and royalty interests, net profit interests,
          production payment interests, farm outs and farm ins, including any reserved,
          back in or residual interests of whatever nature.

         

        "Hydrocarbons"
          shall mean oil, gas, casinghead gas, drip gasoline, natural gasoline,
          condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons and all
          products refined or separated therefrom.

         

        "Indebtedness"
          of a Person means such Person's (i) obligations for borrowed money, (ii)
          obligations representing the deferred purchase price of Property or services
          (other than accounts payable arising in the ordinary course of such Person's
          business payable on terms customary in the trade), (iii) obligations, whether
          or
          not assumed, secured by Liens or payable out of the proceeds or production
          from
          Property now or hereafter owned or acquired by such Person (other than
          Permitted
          Encumbrances), (iv) obligations which are evidenced by notes, acceptances,
          or
          other instruments, (v) obligations of such Person to purchase securities
          or
          other Property arising out of or in connection with the sale of the same
          or
          substantially similar securities or Property, (vi) Capitalized Lease
          Obligations, (vii) Contingent Obligations, (viii) Financial Contracts.
          including
          Rate Management Obligations, (ix) obligations to reimburse issuers of Letters
          of
          Credit, (x) obligations with respect to payments received in consideration
          of
          oil, gas, or other minerals yet to be acquired or produced at the time
          of
          payment (including obligations under "take-or-pay" contracts to deliver
          gas in
          return for payments already received and the undischarged balance of any
          production payment created by such Person 

         

        
          
            8

          

          
            
            

            
            

          

          
            
            
or
            for
            the creation of which such Person directly or indirectly received payment),
            (xi)
            obligations with respect to other obligations to deliver goods or services
            in
            consideration of advance payments therefor; and (xii) any other obligation
            for
            borrowed money or other financial accommodation which in accordance with
            GAAP
            would be shown as a liability on the consolidated balance sheet of such
            Person.

        

         

        "Initial
          Engineering Report" means the engineering reserve report concerning Oil
          and Gas
          Properties of the Credit Parties prepared by Unit and audited by Ryder
          Scott
          Company effective as of December 31, 2006.

         

        "Interest
          Period" means, with respect to a Eurodollar Advance, a period of one, two,
          three
          or six months commencing on a Business Day selected by Unit pursuant to
          this
          Agreement. Such Interest Period will end on the day which corresponds
          numerically to such date one, two, three or six months thereafter, provided,
          however,
          that if
          there is no such numerically corresponding day in the next, second, third
          or
          sixth succeeding month, such Interest Period will end on the last Business
          Day
          of the next, second, third or sixth succeeding month. If an Interest Period
          would otherwise end on a day which is not a Business Day, such Interest
          Period
          will end on the next succeeding Business Day, provided,
          however,
          that if
          the next succeeding Business Day falls in a new calendar month, such Interest
          Period will end on the immediately preceding Business Day.

         

        "Investment"
          of a Person means any loan, advance (other than commission, travel and
          similar
          advances to officers and employees made in the ordinary course of business),
          extension of credit (other than accounts receivable arising in the ordinary
          course of business on terms customary in the trade) or contribution of
          capital
          by such Person; stocks, bonds, mutual funds, partnership interests, notes,
          debentures or other securities owned by such Person; any deposit accounts
          and
          certificate of deposit owned by such Person; and structured notes, derivative
          financial instruments and other similar instruments or contracts owned
          by such
          Person.

         

        "LC"
          is
          defined in Section 2.19.1.

         

        "LC
          Application" is defined in Section 2.19.3.

         

        "LC
          Fee"
          is defined in Section 2.19.4.

         

        "LC
          Issuer" means BOk (or any subsidiary or affiliate of BOk designated by
          BOk) or
          any other Lender in its capacity as issuer of LCs hereunder.

         

        "LC
          Obligations" means, at any time, the sum, without duplication, of (i) the
          aggregate undrawn stated amount under all LCs outstanding at such time
          plus (ii)
          the aggregate unpaid amount at such time of all Reimbursement
          Obligations.

         

        "LC
          Payment Date" is defined in Section 2.19.5.

         

        "LC
          Sublimit" means $15,000,000 until otherwise agreed in writing among the
          LC
          Issuer, Unit and the Required Lenders

         

        "Lenders"
          means the lending institutions now or hereafter listed on the signature
          pages of
          this Agreement and their respective successors and permitted
          assigns.

         

        
          
            9

          

          
            
            

            
            

          

          
            
            

          

        

        "Lenders
          Schedule" means Schedule 2.

         

        "Letter
          of Credit" of a Person means a letter of credit or similar instrument which
          is
          issued upon the application of such Person or upon which such Person is
          an
          account party or for which such Person is in any way liable.

         

        "Lien"
          means any lien (statutory or other), mortgage, pledge, hypothecation,
          assignment, deposit arrangement, encumbrance or preference, priority or
          other
          security agreement or preferential arrangement of any kind or nature whatsoever
          (including, without limitation, the interest of a vendor or lessor under
          any
          conditional sale, Capitalized Lease or other title retention
          agreement).

         

        "Loan"
          means, with respect to a Lender, that Lender's Advances made pursuant to
          Article
          II (or any conversion or continuation thereof).

         

        "Loan
          Documents" means this Agreement, the LC Applications and any Notes issued
          pursuant to Section 2.14, and each Subsidiary Guaranty.

         

        "Long
          Term Debt" means all outstanding long term liabilities of the Borrowers
          in
          accordance with GAAP excluding deferred taxes and the plugging and abandonment
          accrued liabilities described in Section 7.9(v).

         

        "Material
          Adverse Effect" means a material adverse effect on (i) the business, Property,
          condition (financial or otherwise), results of operations, or prospects
          of the
          Borrowers and their Subsidiaries taken as a whole (taking into account
          the
          present value of any indemnification in favor of the Borrowers or any applicable
          insurance coverage), (ii) the ability of any of the Borrowers to perform
          their
          obligations under the Loan Documents to which it is a party, or (iii) the
          validity or enforceability of any of the Loan Documents or the rights or
          remedies of the Administrative Agent, the LC Issuer or the Lenders
          thereunder.

         

        "Material
          Indebtedness" means Indebtedness in an outstanding principal amount of
          $10,000,000 or more (or the equivalent thereof in any currency other than
          U.S.
          dollars).

         

        "Material
          Indebtedness Agreement" means any agreement under which any Material
          Indebtedness was created or is governed or which provides for the incurrence
          of
          Indebtedness in an amount which would constitute Material Indebtedness
          (whether
          or not an amount of Indebtedness constituting Material Indebtedness is
          outstanding thereunder).

         

        "Material
          Subsidiary" means at any time a Subsidiary of any of the Borrowers having
          (i) at
          least ten percent (10%) of the consolidated total assets of the Borrowers
          and
          their Subsidiaries (determined as of the last day of the most recent fiscal
          quarter of the Borrowers) or (ii) at least ten percent (10%) of the consolidated
          revenues of the Borrowers and their Subsidiaries for the fiscal year of
          Unit
          then most recently ended. For purposes of this Agreement, "Material Subsidiary"
          shall not include any Subsidiary of Unit which is also a Borrower. 

         

        "Maximum
          Credit Amount" means such amount that is agreed to in writing by the Borrowers
          and the Lenders as the maximum amount of Credit Extensions available to
          the
          Borrowers under Article II of this Agreement from Lenders.

         

        
          
            10

          

          
            
            

            
            

          

          
            
            

          

        

        "Modify"
          and "Modification" are defined in Section 2.19.1.

         

        "Moody's"
          means Moody's Investors Service, Inc.

         

        "Multiemployer
          Plan" means a Plan maintained pursuant to a collective bargaining agreement
          or
          any other arrangement to which the Borrowers or any member of the Controlled
          Group is a party to which more than one employer is obligated to make
          contributions.

         

        "Note"
          is
          defined in Section 2.14.

         

        "Obligations"
          means all unpaid principal of and accrued and unpaid interest on the Loans,
          all
          Reimbursement Obligations, all Rate Management Obligations under Financial
          Contracts with any Lender or any Lender Affiliate, all accrued and unpaid
          fees
          and all expenses, reimbursements, indemnities and other obligations of
          the
          Borrowers to the Lenders or to any Lender, the Administrative Agent, the
          LC
          Issuer or any indemnified party arising under the Loan Documents.

         

        "Oil
          and
          Gas Properties" means all Hydrocarbon Interests from time to time owned
          by any
          Credit Party or in which one of the Credit Parties has an interest, including
          without limitation, (i) any interests of any Credit Party in such Hydrocarbon
          Interest in the Property now or hereafter pooled or unitized with such
          Hydrocarbon Interests, (ii) all presently existing or future unitization,
          pooling agreements and declarations of pooled units and the units created
          in
          connection therewith (including without limitation all units created under
          orders, regulations and rules of any Governmental Authority) which may
          affect
          all or any portion of such Hydrocarbon Interests, (iii) all operating
          agreements, contracts and other agreements which relate to any of such
          Hydrocarbon Interests or the production, sale, purchase, exchange or processing
          of Hydrocarbons from or attributable to such Hydrocarbon Interests, (iv)
          all
          Hydrocarbons in and under and which may be produced and saved or attributable
          to
          such Hydrocarbon Interests, including as-extracted collateral and all oil
          in
          tanks and all rents, issues, profits, proceeds, products, revenues and
          other
          incomes from or attributable to such Hydrocarbon Interests, (v) all tenements,
          hereditaments, appurtenances and Property in any manner appertaining, belonging,
          affixed or incidental to such Hydrocarbon Interests, (vi) and all Property,
          rights, titles, interests and estates described or referred to above, including
          any and all Property, real or personal, now owned or hereinafter acquired
          and
          situated upon, used, held for use or useful in connection with the operating,
          working or development of any of such Hydrocarbon Interests or Property
          (excluding drilling rigs, automotive equipment or other personal property
          which
          may be on such premises for the purpose of drilling a well or for other
          similar
          temporary uses), and (vii) any and all oil wells, gas wells, injection
          wells or
          other wells, buildings, structures, fuel separators, liquid extraction
          plants,
          plant compressors, pumps, pumping units, field gathering systems, tanks
          and tank
          batteries, fixtures, valves, fittings, machinery and parts, engines, boilers,
          meters, apparatus, equipment, appliances, tools, implements, cables, wires,
          towers, casing, tubing and rods, surface leases, rights-of-way, easements
          and
          servitudes together with all additions, substitutions, replacements, accessions
          and attachments to any and all of the foregoing, in each case limited to
          the
          interest of such applicable Credit Party in such assets.

         

        "Other
          Taxes" is defined in Section 3.3(ii).

         

        
          
            11

          

          
            
            

            
            

          

          
            
            

          

        

        "Outstanding
          Credit Exposure" means, as to any Lender at any time, the sum of (i) the
          aggregate principal amount of its Loans outstanding at such time, plus
          (ii) an
          amount equal to its Pro Rata Share of the LC Obligations at such
          time.

         

        "Participants"
          is defined in Section 14.2.1.

         

        "Payment
          Date" means the day prescribed in Section 2.16 for payment of Eurodollar
          Loans
          and Floating Rate Loans, respectively.

         

        "PBGC"
          means the Pension Benefit Guaranty Corporation, or any successor
          thereto.

         

        "Permitted
          Encumbrances" means any Lien permitted by Section 7.6.

         

        "Person"
          means any natural person, corporation, firm, joint venture, partnership,
          limited
          liability company, association, enterprise, trust or other entity or
          organization, or any government or political subdivision or any agency,
          department or instrumentality thereof.

         

        "Plan"
          means an employee pension benefit plan which is covered by Title IV of
          ERISA or
          subject to the minimum funding standards under Section 412 of the Code
          as to
          which the Borrowers or any member of the Controlled Group may have any
          liability.

         

        "Pricing
          Schedule" means Schedule 1.

         

        "Prime
          Rate" means the annual rate of interest set by BOKF in its sole discretion
          as
          the BOKF National Prime Rate, on a daily basis as published by BOKF from
          time to
          time (the "Index"), which shall be the rate used by BOKF as a base or standard
          for pricing purposes, and which shall not necessarily be its "best" or
          lowest
          rate. The Borrowers acknowledge and stipulate that the Lenders may make
          loans
          based on other rates or indices as well. Should the Index become unavailable
          during the term of the Loans evidenced by the Notes and/or governed hereby
          or by
          Financial Contracts or should BOKF otherwise cease to publish or announce
          a
          prime or base rate, or should it be merged, consolidated, liquidated or
          dissolved in such a manner that it loses its separate corporate or banking
          identity, then the Index shall be a substitute index selected and designated
          by
          the Administrative Agent and concerning which Unit is notified by the
          Administrative Agent. Any change in the Prime Rate shall be effective as
          of the
          date of the change but the Prime Rate shall not change more often than
          once each
          day. Under no circumstances will the interest rate on the Notes be more
          than the
          Highest Lawful Rate.

         

        "Pro
          Rata
          Share" means, with respect to a Lender, a portion equal to a fraction the
          numerator of which is such Lender's Commitment and the denominator of which
          is
          the Aggregate Commitment.

         

        "Property"
          of a Person means any and all property, whether real, personal, tangible,
          intangible, or mixed, of such Person, or other assets owned, leased or
          operated
          by such Person. 

         

        "Purchasers"
          is defined in Section 14.3.1.

         

        "Rate
          Management Obligations" of a Person means any and all obligations of such
          Person, whether absolute or contingent and howsoever and whensoever created,
          arising, evidenced or acquired (including all renewals, 

         

        
          
            12

          

          
            
            

            
            

          

          
            
            
extensions,
            supplements, replacements and modifications thereof and substitutions
            therefor),
            under (i) any and all Financial Contracts, including Rate Management
            Transactions, and (ii) any and all cancellations, buy backs, reversals,
            terminations or assignments of any Financial Contracts, including Rate
            Management Transactions.

        

         

        "Rate
          Management Transaction" means any transaction (including an agreement with
          respect thereto) now existing or hereafter entered by the Borrowers which
          is a
          rate swap, basis swap, hedge, forward rate transaction, commodity swap,
          commodity option, equity or equity index swap, equity or equity index option,
          bond option, interest rate option, foreign exchange transaction, cap
          transaction, floor transaction, collar transaction, forward transaction,
          currency swap transaction, cross-currency rate swap transaction, currency
          option
          or any other similar transaction or price/commodity protection device (including
          any option with respect to any of these transactions) or any combination
          thereof, whether linked to one or more interest rates, foreign currencies,
          commodity prices, equity prices or other financial measures. Notwithstanding
          the
          foregoing, a "Rate Management Transaction" will not include any contract
          for the
          purchase and sale of natural gas or oil entered into in the ordinary course
          of
          business and on customary trade terms.

         

        "Redetermination"
          means a Scheduled Redetermination or a Special Redetermination. 

         

        "Regulation
          D" means Regulation D of the Board of Governors of the Federal Reserve
          System as
          from time to time in effect and any successor thereto or other regulation
          or
          official interpretation of said Board of Governors relating to reserve
          requirements applicable to member banks of the Federal Reserve
          System.

         

        "Regulation
          U" means Regulation U of the Board of Governors of the Federal Reserve
          System as
          from time to time in effect and any successor or other regulation or official
          interpretation of said Board of Governors relating to the extension of
          credit by
          banks for the purpose of purchasing or carrying margin stocks applicable
          to
          member banks of the Federal Reserve System.

         

        "Reimbursement
          Obligations" means, at any time, the aggregate of all obligations of the
          Borrowers then outstanding under Section 2.19 to reimburse the LC Issuer
          for
          amounts paid by the LC Issuer in respect of any one or more drawings under
          LCs.

         

        "Reportable
          Event" means a reportable event as defined in Section 4043 of ERISA, with
          respect to which the notice requirements to the PBGC have not been waived,
          provided, however, that a failure to meet the minimum funding standard
          of
          Section 412 of the Code and of Section 302 of ERISA will be a Reportable
          Event
          regardless of the issuance of any such waiver of the notice requirement
          in
          accordance with either Section 4043(a) of ERISA or Section 412(d) of the
          Code.

         

        "Required
          Lenders" means Lenders in the aggregate having at least 66.67% of the Aggregate
          Commitment or, if the Aggregate Commitment has been terminated, Lenders
          in the
          aggregate holding at least two-thirds (66.67%) of the Aggregate Outstanding
          Credit Exposure.

         

        
          
            13

          

          
            
            

            
            

          

          
            
            

          

        

        "Reserve
          Requirement" means, with respect to an Interest Period, the maximum aggregate
          reserve requirement (including all basic, supplemental, marginal and other
          reserves) which is imposed under Regulation D on Eurocurrency
          liabilities.

         

        "S&P"
          means Standard and Poor's Ratings Services, a division of The McGraw Hill
          Companies, Inc.

         

        "Sale
          and
          Leaseback Transaction" means any sale or other transfer of Property by
          any
          Person with the intent to lease such Property as lessee.

         

        "Scheduled
          Redetermination" means any redetermination of the Borrowing Base under
          Sections
          2.6.4 or 2.6.5 in accordance with Section 2.6.2.

         

        "SEC"
          means the Securities and Exchange Commission.

         

        "Single
          Employer Plan" means a Plan maintained by the Borrowers or any member of
          the
          Controlled Group for employees of the Borrowers or any member of the Controlled
          Group. 

         

        "Special
          Redetermination" means any redetermination of the Borrowing Base pursuant
          to
          Sections 2.6.4 or 2.6.5.

         

        "Subsidiary"
          of a Person means (i) any corporation more than 50% of the outstanding
          securities having ordinary voting power of which will at the time be owned
          or
          controlled, directly or indirectly, by such Person or by one or more of
          their
          Subsidiaries or by such Person and one or more of their Subsidiaries, or
          (ii)
          any partnership, limited liability company, association, joint venture
          or
          similar business organization more than 50% of the ownership interests
          having
          ordinary voting power of which will at the time be so owned or controlled,
          provided that associations, joint ventures or other relationships (a) which
          are
          established pursuant to a standard form operating agreement or similar
          agreement
          or which are partnerships for purposes of federal income taxation only,
          (b)
          which are not corporations or partnerships (or subject to the Uniform
          Partnership Act) under applicable state applicable law, and (c) whose businesses
          are limited to the exploration, development and operation of oil, gas or
          mineral
          properties and interests owned directly by the parties in such associations,
          joint ventures or relationships, will not be deemed to be "Subsidiaries"
          of such
          Person. Unless otherwise expressly provided, all references herein to a
          "Subsidiary" will mean a Subsidiary of any of the Borrowers (including
          Subsidiary Guarantors).

         

        "Subsidiary
          Guarantor" means each present or future Material Subsidiary and their successors
          and assigns, including any receiver, trustee or debtor in
          possession.

         

        "Subsidiary
          Guaranty" means the Guaranty Agreement, substantially in the form of Exhibit
          E
          to be executed by each Material Subsidiary in favor of the Administrative
          Agent
          for the ratable benefit of the Lenders, with respect to the Obligations
          of the
          Borrowers under this Credit Agreement.

         

        "Subsidiary
          Guaranty Joinder Agreement" means the Joinder Agreement, substantially
          in the
          form of Schedule 1 to the Subsidiary Guaranty, to be executed and delivered
          by
          each new Material Subsidiary in accordance with the provisions of Section
          9.1 of
          this Credit Agreement.

         

        
          
            14

          

          
            
            

            
            

          

          
            
            

          

        

        "Superior
          Cash Flow" means the loan value attributed by the Lenders or Required Lenders,
          as applicable, from time to time to the throughput volume in the pipeline
          systems of Superior in accordance with Section 2.6 of the Credit
          Agreement.

         

        "Syndication
          Agent" means BMO and its successors and permitted assigns.

         

        "Taxes"
          means any and all present or future taxes, duties, levies, imposts, deductions,
          charges or withholdings, and any and all liabilities with respect to the
          foregoing, but excluding Excluded Taxes and Other Taxes.

         

        "Transferee"
          is defined in Section 14.4.

         

        "Unfunded
          Liabilities" means the amount (if any) by which the present value of all
          vested
          and unvested accrued benefits under all Single Employer Plans exceeds the
          fair
          market value of all such Plan assets allocable to such benefits, all determined
          as of the then most recent valuation date for such Plans using PBGC actuarial
          assumptions for single employer plan terminations. 

         

        "Wholly-Owned
          Subsidiary" of a Person means (i) any Subsidiary all of the outstanding
          voting
          securities of which will at the time be owned or controlled, directly or
          indirectly, by such Person or one or more Wholly-Owned Subsidiaries of
          such
          Person, or by such Person and one or more Wholly-Owned Subsidiaries of
          such
          Person, or (ii) any partnership, limited liability company, association,
          joint
          venture or similar business organization 100% of the ownership interests
          having
          ordinary voting power of which will at the time be so owned or
          controlled.

         

        The
          foregoing definitions will be equally applicable to both the singular and
          plural
          forms of the defined terms.

         

        1.2  Exhibits
          and Schedules; Additional Definitions.
          All
          Exhibits and Schedules attached to this Agreement are a part of this Agreement
          for all purposes. Unless the context otherwise requires or unless otherwise
          provided in this Agreement the terms defined in this Agreement which refer
          to a
          particular agreement, instrument or document also refer to and include
          all
          renewals, extensions, modifications, amendments and restatements of such
          agreement, instrument or document, provided that nothing in this section
          will be
          construed to authorize any such renewal, extension, modification, amendment
          or
          restatement.

         

        1.3  Reference
          and Titles.
          All
          references in this Agreement to Exhibits, Schedules, articles, sections,
          subsections and other subdivisions refer to the Exhibits, Schedules, articles,
          sections, subsections and other subdivisions of this Agreement unless expressly
          provided otherwise. Exhibits and Schedules to any Loan Document will be
          deemed
          incorporated by reference in such Loan Document. References to any document,
          instrument, or agreement (a) will include all exhibits, schedules, and
          other
          attachments thereto, and (b) will include all documents, instruments, or
          agreements issued or executed in replacement or restatement thereof. Titles
          appearing at the beginning of any subdivisions are for convenience only
          and do
          not constitute any part of such subdivisions and will be disregarded in
          construing the language contained in such subdivisions. The words "this
          Agreement," "this instrument," "herein," "hereof," "hereby," "hereunder"
          and
          words of similar import refer to this Agreement as a whole and not to any
          particular subdivision unless expressly so limited. The phrases "this section"
          and "this subsection" and similar phrases refer only to the sections or
          subsections hereof in 

         

        
          
            15

          

          
            
            

            
            

          

          
            
            
which
            such phrases occur. The word "or" is not exclusive, and the word "including"
            (in
            its various forms) means "including without limitation." Pronouns in
            masculine,
            feminine and neuter genders will be construed to include any other gender,
            and
            words in singular form will be construed to include the plural and vice
            versa,
            unless the context otherwise requires. 

        

         

        1.4  Accounting
          Terms and Determinations.
          Except
          only as otherwise expressly provided in this Agreement, all accounting
          terms
          will be interpreted, and all financial statements and certificates and
          reports
          as to financial matters required to be delivered to the Administrative
          Agent or
          the Lenders under this Agreement shall be prepared in accordance with GAAP,
          as
          applied on a consistent basis. References to "days" will mean calendar
          days,
          unless the term "Business Day" is used. Unless otherwise specified, references
          herein to any particular Person also refer to its successors and permitted
          assigns.

         

        1.5  Calculations
          and Determinations.
          All
          calculations under the Loan Documents of interest and of fees will be made
          on
          the basis of actual days elapsed (including the first day but excluding
          the
          last) and a year of 360 days except only for interest accruals on Floating
          Rate
          Loans which will be based on the number of days lapsed in a 365-366 day
          year.
          Each determination by a Lender of amounts to be paid under Article III
          or any
          other matters which are to be determined hereunder by a Lender (such as
          any
          Eurodollar Rate, Business Day, Interest Period, or Reserve Requirement)
          will, in
          the absence of manifest error, be conclusive and binding. 

         

        1.6  Joint
          Preparation; Construction of Indemnities and Releases.
          This
          Agreement and the other Loan Documents have been reviewed and negotiated
          by
          sophisticated parties with access to legal counsel and no rule of construction
          will apply hereto or thereto which would require or allow any Loan Document
          to
          be construed against any party because of its role in drafting such Loan
          Document. All indemnification and release provisions of this Agreement
          will be
          construed broadly (and not narrowly) in favor of the Persons receiving
          indemnification or being released.

         

        ARTICLE
          II

        THE
          CREDITS

         

        2.1  Commitments.
          From
          and including the date of this Agreement and up to the Facility Termination
          Date, each Lender severally agrees, on the terms and conditions of this
          Agreement, to (i) make Loans to the Borrowers (on a joint and several liability
          basis) and (ii) participate in LCs issued upon the request of the Borrowers,
          provided that, after giving effect to the making of each such Loan and
          the
          issuance of each such LC, such Lender's Outstanding Credit Exposure does
          not
          exceed its Commitment and the Aggregate Outstanding Credit Exposure does
          not
          exceed the Aggregate Commitment. Subject to the terms of this Agreement,
          Unit,
          as the designated borrowing agent on behalf of all of the Borrowers, may
          borrow,
          repay and re-borrow at any time before the Facility Termination Date. Each
          Lender's Commitment will expire on the Facility Termination Date. The LC
          Issuer
          will issue LCs hereunder on the terms and conditions set forth in Section
          2.19.

         

        2.2  Required
          Payments; Termination.
          All
          unpaid Obligations will be paid in full by the Borrowers on the Facility
          Termination Date.

         

        
          
            16

          

          
            
            

            
            

          

          
            
            

          

        

        2.3  Ratable
          Loans.
          Each
          Advance will be made by the Lenders ratably according to their Pro Rata
          Shares.

         

        2.4  Types
          of Advances.
          The
          Advances may be Floating Rate Advances or Eurodollar Advances, or a combination
          thereof, selected by Unit on behalf of the Borrowers in accordance with
          Sections
          2.9 and 2.10.

         

        2.5  Facility
          Fee; Initial Aggregate Commitment; Maximum Credit Amount; Commitment Fee
          Rate.
          

         

        2.5.1.  A
          facility fee of $687,500 (calculated on the basis of a 25 basis point fee
          for
          the initial Aggregate Commitment described in Section 2.5.2) will be paid
          at
          Closing to the Administrative Agent for the Pro Rata Share benefit of each
          Lender. Any increases in the Aggregate Commitment above the amount designated
          in
          Section 2.5.2 will be contingent upon the Borrowers' payment of a 25 basis
          point
          facility fee on the amount of such increase(s) to the Administrative Agent
          for
          the Pro Rata Share benefit of the Lenders increasing its or their Commitments
          and/or on the Commitment of any additional Lender(s) pursuant to Section
          14.6.

         

        2.5.2.  The
          initial Aggregate Commitment is $275,000,000 and the initial Maximum Credit
          Amount is $400,000,000. Any increase in either the Aggregate Commitment
          or the
          Maximum Credit Amount requires the written consent of all Lenders.

         

        2.5.3.  
          The
          Borrowers agree to pay to the Administrative Agent for the Pro Rata Share
          of
          each Lender a commitment fee equal to the per annum Commitment Fee Rate
          (as set
          forth on the Pricing Schedule) multiplied by the average daily amount of
          the
          Available Aggregate Commitment from the date of this Agreement through
          the
          Facility Termination Date. The commitment fee will be payable on each quarterly
          Payment Date hereafter and on the Facility Termination Date. All accrued
          commitment fees will be payable on the effective date of any termination
          of the
          obligations of the Lenders to make Credit Extensions. 

         

        2.6  Borrowing
          Base.

         

        2.6.1.  Until
          the
          first Determination Date, the parties hereto stipulate that the Borrowing
          Base
          preliminarily set by the Lenders is $425,000,000, subject to the term,
          provisions and limitations hereof (the "Borrowing Base"). 

         

        2.6.2.  By
          March
          1 and September 1 of each year beginning September 1, 2007 Unit will furnish
          to
          each Lender all information, reports and data that Administrative Agent
          has then
          requested concerning the businesses and properties (including the information
          specified in Sections 6.1(vii) and (viii)). The Engineering Report submitted
          to
          the Agent and each Lender by each March 1 will be audited by an independent
          third party engineering firm acceptable to the Agent and dated effective
          no
          earlier than December 31 of the immediately preceding calendar year. The
          Engineering Report submitted to the Agent and each Lender by September
          1 will be
          internally prepared by Unit and dated effective no earlier than June 30
          of such
          year and:

         

        
          
            17

          

          
            
            

            
            

          

          
            
            

          

        

        (a)  By
          each
          April 1 and October 1, commencing October 1, 2007, the Administrative Agent
          will
          submit in writing to the Lenders its proposed Borrowing Base amount

         

        (b)  After
          having received written notice of such proposal by the Administrative Agent,
          all
          of the other Lenders shall have ten (10) Business Days to agree or disagree
          with
          such proposal. If however, within the time prescribed by the preceding
          sentence,
          (i) all the Lenders have not approved in writing the Administrative Agent's
          proposal with respect to an increase in the Borrowing Base, or (ii) Lenders
          holding seventy five percent (75%) of the Aggregate Commitment or, if the
          Aggregate Commitment has been terminated or has expired, Lenders holding
          seventy
          five percent (75%) of the Aggregate Outstanding Credit Exposure (the "Borrowing
          Base Required Lenders") have not affirmatively approved the Administrative
          Agent's proposal with respect to a decrease in, or maintenance of, the
          Borrowing
          Base, the Administrative Agent and, the Lenders shall, within five (5)
          Business
          Days, diligently attempt in good faith to agree upon a new Borrowing
          Base.

         

        (c)  If
          the
          Administrative Agent and the Borrowing Base Required Lenders cannot otherwise
          agree on a redetermination of the Borrowing Base resulting in a decrease
          in or
          the same (maintenance of) Borrowing Base within such additional five (5)
          Business Day period, then the proposed Borrowing Base shall be set at the
          amount
          calculated by the Administrative Agent as the "weighted arithmetic average"
          (as
          hereinafter calculated) of the Borrowing Base, as determined by each individual
          Lender and communicated to the Administrative Agent in writing, and such
          Borrowing Base shall then become the Borrowing Base. For purposes of this
          paragraph, the "weighted arithmetic average" of the Borrowing Base shall
          be
          determined by first multiplying the Borrowing Base proposed in writing
          to the
          Administrative Agent by each Lender by the ratio of such Lender's Percentage
          Share over the sum of the Percentage Shares of all Lenders, and then adding
          the
          results of each such calculation, with the resultant sum being the Borrowing
          Base. In no event shall the foregoing "weighted arithmetic average" be
          employed
          to increase the Borrowing Base unless all Lenders consent in writing thereto.
          

         

        (d)  The
          Administrative Agent will then promptly notify Unit of the new Borrowing
          Base
          amount as determined by the Lenders or the Borrowing Base Required Lenders,
          as
          applicable. Unless within five (5) days following the Administrative Agent's
          notice, Unit makes a designation permitted by Section 2.6.3, the new Borrowing
          Base will be effective as of the date such notice is sent (a "Determination
          Date") provided, however, any increase in the Borrowing Base must be approved
          by
          all Lenders. If Unit so designates a lesser amount for the Borrowing Base,
          such
          designated Borrowing Base shall become effective when the Administrative
          Agent
          receives Unit's written designation, and in either event, the Borrowing
          Base
          will remain in effect until but not including the next date the Borrowing
          Base
          is redetermined other than designations permitted by Section 2.6.3.

         

        
          
            18

          

          
            
            

            
            

          

          
            
            

          

        

        (e)  If
          Unit
          does not furnish all such information, reports and data by the date specified
          in
          this subsection, Administrative Agent may designate the Borrowing Base
          at any
          amount which the Lenders or the Borrowing Base Required Lenders, as applicable,
          determine and may redesignate the Borrowing Base from time to time until
          each
          Lender receives all such information, reports and data, at which time the
          Lenders or the Borrowing Base Required Lenders, as applicable, may designate
          a
          new Borrowing Base. Required Lenders will determine the Borrowing Base
          based on
          (i) the loan value which they in their discretion assign to the various
          Borrowers' Oil and Gas Properties being evaluated, (ii) the loan value,
          as the
          Lenders shall reasonably attribute to be assigned to Superior Cash Flow,
          and
          (iii) any other credit factors (including without limitation the assets,
          liabilities, cash flow, hedged and unhedged exposure to price, foreign
          exchange
          rate, and interest rate changes, business, properties, prospects, management
          and
          ownership of Credit Parties) as the Lenders deem significant. The Lenders
          and
          the Administrative Agent have no obligation to agree on or designate the
          Borrowing Base at any particular amount, whether in relation to the Aggregate
          Commitment or otherwise.

         

        2.6.3.  Following
          the Administrative Agent's notice to Unit of the Borrowing Base amount
          determined under Section 2.6.2, Unit, on behalf of the Borrowers, may (i)
          once
          during each Scheduled Redetermination six (6) month period and (ii) on
          each such
          additional occasion during such six (6) month period following Unit's
          successfully close the issuance of debt or equity securities permitted
          by this
          Agreement, designate in writing to the Administrative Agent a reduced Aggregate
          Commitment amount subject to a minimum reduction amount of $10,000,000
          (and in
          additional multiples of $10,000,000). Subject to any Special Redetermination
          permitted by this Section 2.6 and the provisions of this Section 2.6.3,
          such
          lesser amount designated by Unit will be the Aggregate Commitment until
          the next
          Scheduled Redetermination. The Administrative Agent and the Lenders stipulate
          that Unit has initially designated $275,000,000 as the Aggregate Commitment
          effective from the date of this Agreement. All parties hereto stipulate
          that the
          initial Borrowing Base is $425,000,000 as of the effective date of this
          Agreement.

         

        2.6.4.  In
          addition to Scheduled Redeterminations, the Lenders or the Borrowing Base
          Required Lenders, as applicable, will be permitted to make a Special
          Redetermination of the Borrowing Base once between each Determination Date
          by
          notifying the Administrative Agent and Borrowers. Such Special Redetermination
          by the Lenders shall be in addition to any reduction of the Borrowing Base
          by
          the Required Lenders under Section 7.4(iv). 

         

        2.6.5.  In
          addition to Scheduled Redeterminations, Borrowers will be permitted to
          request a
          Special Redetermination of the Borrowing Base (i) once between each
          Determination Date and (ii) following the consummation of the closing of
          any
          Acquisition by any Borrower permitted by this Agreement and for an amount
          equal
          to or greater than $40,000,000. Such request, including the amount requested,
          will be submitted in writing to the Administrative Agent and, at the time
          of
          such request, Unit will deliver to Administrative Agent and each Lender,
          any
          information they may reasonably request in connection with the request
          for a
          Special Redetermination. 

         

        
          
            19

          

          
            
            

            
            

          

          
            
            

          

        

        2.6.6.  If
          at any
          time, the Aggregate Outstanding Credit Exposure exceeds the lesser of the
          Borrowing Base or the Aggregate Commitment (a "Deficiency") because of
          a
          reduction in the Borrowing Base due to or resulting from a redetermination
          in
          accordance with this Section 2.6 (excluding Section 2.6.7 hereof),
          Administrative Agent may notify Unit in writing of the Deficiency and within
          ten
          (10) days from the date of such deficiency notice, Unit will elect one
          of the
          following options: 

         

        (a)  Make
          a
          prepayment on the Notes in an amount sufficient to reduce the aggregate
          unpaid
          principal balance of the Notes by an amount equal to or more than the amount
          of
          such Deficiency; or

         

        (b)  Dedicate
          to this Agreement other Oil and Gas Properties or assets not then included
          in
          the Borrowing Base determinations in form and substance satisfactory to
          the
          Required Lenders and the Administrative Agent as security and collateral
          for the
          Outstanding Credit Exposure and the Commitments (and all other Obligations),
          provided that such Oil and Gas Properties are acceptable to the Required
          Lenders
          and are of a value, as determined by the Administrative Agent and the Required
          Lenders, that the Aggregate Outstanding Credit Exposure does not exceed
          the
          Borrowing Base (as adjusted to include the values of the Oil and Gas
          Properties); or

         

        (c)  Commence
          monthly principal payments each equal to the amount of the Deficiency divided
          by
          the number of whole calendar months between date of the Deficiency notice
          and
          the next semi-annual Scheduled Redetermination.

         

        If
          Unit
          elects to (i) make a prepayment on the Notes under clause (a) or (ii) commence
          monthly principal payments under clause (c), such prepayment will be due
          within
          twenty (20) days after the date of Unit's timely election. The prepayment
          or
          monthly principal payments will be applied in reduction of the principal
          balance
          of the Notes. If Unit elects to commit Oil and Gas Properties under clause
          (b)
          above, the Borrowers will provide the Administrative Agent with descriptions
          of
          Oil and Gas Properties (together with any current valuations and engineering
          reports applicable thereto which may be requested by the Administrative
          Agent)
          and will execute, acknowledge and deliver to the Administrative Agent any
          security agreements or pledges within thirty (30) days after the documents
          are
          tendered to the Borrowers by the Administrative Agent for
          execution.

         

        2.6.7. The
          Borrowing Base will be automatically reduced if and to the extent Borrower
          issues or incurs Indebtedness as follows: (i) a dollar ($1.00) for dollar
          ($1.00) reduction if such Indebtedness is on a pari
          passu
          basis
          with the Obligations and (ii) up to an amount equal to a twenty seven cent
          ($0.27) reduction for each one dollar ($1.00) amount of expressly subordinated
          debt (including subordinated debt convertible to equity in Unit) so long
          as such
          subordinated debt is (x) in form, scope and content reasonably acceptable
          to the
          Administrative Agent and the Required Lenders, and (y) in compliance with
          the
          limitations of Section 7.2(ix). 

         

        
          
            20

          

          
            
            

            
            

          

          
            
            

          

        

        2.7  Minimum
          Amount of Each Advance.
          Each
          Eurodollar Advance will be in the minimum amount of $2,000,000 (and in
          additional multiples of $1,000,000), and each Floating Rate Advance will
          be in
          the minimum amount of $200,000 (and in additional multiples of $100,000),
          provided, that any Floating Rate Advance may be in the amount of the Available
          Aggregate Commitment. 

         

        2.8  Principal
          Payments.

         

        (a)  Optional
          Principal Payments.
          The
          Borrowers may from time to time pay, without penalty or premium, all outstanding
          Floating Rate Advances, or, in a minimum aggregate amount of $100,000 or
          any
          multiple of $100,000 in excess thereof, any portion of the outstanding
          Floating
          Rate Advances upon notice to the Administrative Agent . The Borrowers may
          from
          time to time pay, subject to the payment of any funding indemnification
          amounts
          required by Section 3.5 but without penalty or premium, all outstanding
          Eurodollar Advances, or, in a minimum aggregate amount of $2,000,000 or
          any
          integral multiple of $1,000,000 in excess thereof, any portion of the
          outstanding Eurodollar Advances upon three (3) Business Days' prior notice
          to
          the Administrative Agent.

         

        (b)  Mandatory
          Principal Payments.
          If at
          any time a Deficiency occurs as a result of the sale or disposition of
          any
          Borrowing Base Properties or pursuant to Section 2.6.7 (as opposed to a
          Deficiency subject to the provisions of Section 2.6.6 hereof), Borrowers
          will
          within 30 days after Administrative Agent gives notice of such fact to
          Borrowers
          to prepay the principal of the Loans in an aggregate amount at least equal
          to
          such Deficiency (or, if the Loans have been paid in full, deposit with
          the
          Administrative Agent the amount required to eliminate the Deficiency) together
          with interest during the period of such Deficiency at the Prime Rate per
          annum
          plus fifty basis points (0.50%) as to Floating Rate Advances or Eurodollar
          Rate
          plus two hundred twenty-five basis points (2.25%) as to Eurodollar Rate
          Loans
          per annum as to Eurodollar Rate Advances. Each payment of principal under
          this
          Section 2.8(b) will be accompanied by all interest then accrued and unpaid
          on
          the principal so prepaid. Any principal or interest prepaid pursuant to
          this
          section will be in addition to, and not in lieu of, all payments otherwise
          required to be paid under the Loan Documents at the time of such
          prepayment.

         

        2.9  Method
          of Selecting Loan Types and Interest Periods for New Advances.
          Unit
          will select the type of Advance and, in the case of each Eurodollar Advance,
          the
          Interest Period applicable thereto from time to time. Unit will give the
          Administrative Agent irrevocable notice (a "Borrowing Notice") not later
          than
          10:00 a.m. (Tulsa time) on the same Business Day as the Borrowing Date
          of each
          Floating Rate Advance and three Business Days before the Borrowing Date
          for each
          Eurodollar Advance, specifying:

         

        (i)
           the
          Borrowing Date, which will be a Business Day, of such Advance,

         

        (ii)
           the
          aggregate amount of such Advance,

         

        
          
            21

          

          
            
            

            
            

          

          
            
            

          

        

        (iii)
           the
          type
          (Floating Rate or Eurodollar) of Advance selected, and

         

        (iv)
           in
          the
          case of each Eurodollar Advance, the Interest Period applicable
          thereto.

         

        Not
          later
          than 1:00 p. m. (Tulsa, Oklahoma time) on each Borrowing Date, each Lender
          will
          make available its Loan or Loans in funds immediately available in Tulsa
          to the
          Administrative Agent at its address specified pursuant to Article XV. The
          Administrative Agent will make the funds so received from the Lenders available
          to the Borrowers at the Administrative Agent's aforesaid address.

         

        2.10  Conversion
          and Continuation of Outstanding Advances.
          Floating Rate Advances will continue as Floating Rate Advances unless and
          until
          such Floating Rate Advances are converted into Eurodollar Advances pursuant
          to
          this Section 2.10 or are repaid in accordance with Section 2.8. Each Eurodollar
          Advance will continue as a Eurodollar Advance until the end of the then
          applicable Interest Period therefor, at which time such Eurodollar Advance
          will
          be automatically converted into a Floating Rate Advance unless (x) such
          Eurodollar Advance is or was repaid in accordance with Section 2.8 or (y)
          Unit
          will have given the Administrative Agent a Conversion/Continuation Notice
          (as
          defined below) requesting that, at the end of such Interest Period, such
          Eurodollar Advance continue as a Eurodollar Advance for the same or another
          Interest Period. Subject to the terms of Section 2.7, Unit may elect from
          time
          to time to convert all or any part of a Floating Rate Advance into a Eurodollar
          Advance. Unit will give the Administrative Agent irrevocable notice (a
          "Conversion/Continuation Notice") of each conversion of a Floating Rate
          Advance
          into a Eurodollar Advance or continuation of a Eurodollar Advance not later
          than
          12:00 noon (Tulsa time) at least three Business Days prior to the date
          of the
          requested conversion or continuation, specifying:

         

        (i)
           the
          requested date, which will be a Business Day, of such conversion or
          continuation,

         

        (ii)
           the
          aggregate amount and type of the Advance (floating Rate Advance or Eurodollar
          Advance) which is to be converted or continued, and

         

        (iii)
           the
          amount of such Advance which is to be converted into or continued as a
          Eurodollar Advance and the duration of the Interest Period applicable
          thereto.

         

        2.11  Changes
          in Interest Rate.
          Each
          Floating Rate Advance will bear interest on the outstanding principal amount
          thereof, for each day from and including the date such Advance is made
          or is
          automatically converted from a Eurodollar Advance into a Floating Rate
          Advance
          pursuant to Section 2.10, to but excluding the date it is paid or is converted
          into a Eurodollar Advance pursuant to Section 2.10 hereof, at a rate per
          annum
          equal to the Floating Rate for such day. Changes in the rate of interest
          on that
          portion of any Advance maintained as a Floating Rate Advance will take
          effect
          simultaneously with each change in the Alternate Base Rate. Each Eurodollar
          Advance will bear interest on the outstanding principal amount thereof
          from and
          including the first day of the Interest Period applicable thereto to (but
          not
          including) the last day of such Interest Period at the interest rate determined
          by the Administrative Agent as applicable to such Eurodollar Advance based
          upon
          Unit's selections under Sections 2.9 and 2.10 and otherwise in accordance
          with
          the terms hereof. No Interest Period may end after the Facility Termination
          Date.

         

        
          
            22

          

          
            
            

            
            

          

          
            
            

          

        

        2.12  Rates
          Applicable After Default.
          Notwithstanding anything to the contrary contained in Section 2.9, 2.10
          or 2.11,
          during the continuance of a Default the Required Lenders may, at their
          option,
          by written notice to Unit, declare that no Advance may be made as, converted
          into or continued as a Eurodollar Advance. During the continuance of any
          Event
          of Default (i) each Eurodollar Advance will bear interest for the remainder
          of
          the applicable Interest Period at the rate otherwise applicable to such
          Interest
          Period plus an additional two hundred basis points (2.0%) per annum, (ii)
          each
          Floating Rate Advance will bear interest at a rate per annum equal to the
          Floating Rate in effect from time to time plus an additional two hundred
          basis
          points (2.0%) per annum and (iii) the LC Fee will be increased by an additional
          2% per annum, provided that, during the continuance of a Default under
          Section
          10.6 or 10.7, the interest rates set forth in clauses (i) and (ii) above
          and the
          increase in the LC Fee set forth in clause (iii) above will be applicable
          to all
          Credit Extensions without any election, notice or other action on the part
          of
          the Administrative Agent or any Lender. 

         

        2.13  Method
          of Payment.
          All
          payments of the Obligations hereunder will be made, without setoff, deduction,
          or counterclaim, in immediately available funds to the Administrative Agent
          at
          the Administrative Agent's address specified pursuant to Section 15.1,
          or at any
          other banking address of the Administrative Agent specified in writing
          by the
          Administrative Agent to Unit, by 12:00 noon (local Tulsa time) on the date
          when
          due and will (except in the case of Reimbursement Obligations for which
          the LC
          Issuer has not been fully indemnified by the Lenders, or as otherwise
          specifically required hereunder) be applied ratably by the Administrative
          Agent
          among the Lenders. Each payment delivered to the Administrative Agent for
          the
          account of any Lender will be delivered promptly by the Administrative
          Agent to
          such Lender in the same type of funds that the Administrative Agent received
          at
          its address specified pursuant to Section 15.1 or at any banking address
          specified in a notice received by the Administrative Agent from such Lender.
          The
          Administrative Agent is hereby authorized to charge the account of the
          Borrowers
          (other than any Excluded Account) maintained with BOk for each payment
          of
          principal, interest, Reimbursement Obligations and fees as it becomes due
          hereunder. Each reference to the Administrative Agent in this Section 2.13
          will
          also be deemed to refer, and will apply equally, to the LC Issuer, in the
          case
          of payments required to be made by the Borrowers to the LC Issuer pursuant
          to
          Section 2.19.

         

        All
          payments applied to principal or interest on any Note will be applied first
          to
          any interest then due and payable, then to principal then due and payable,
          and
          last to any prepayment of principal and interest in compliance with Section
          2.8.
          All distributions of amounts described in any of subsections (b) or (c)
          above
          will be made by Administrative Agent pro rata to each Lender then owed
          Obligations described in such subsection in proportion to all amounts owed
          to
          Administrative Agent and all Lenders which are described in such subsection;
          provided that if any Lender then owes payments to LC Issuer for the purchase
          of
          a participation under Section 2.19.5 or to Administrative Agent under Section
          13.7, any amounts otherwise distributable under this section to such Lender
          will
          be deemed to belong to LC Issuer, or Administrative Agent, respectively,
          to the
          extent of such unpaid payments, and Administrative Agent will apply such
          amounts
          to make such unpaid payments rather than distribute such amounts to such
          Lender.

         

        
          
            23

          

          
            
            

            
            

          

          
            
            

          

        

        2.14  Evidence
          of Indebtedness.

         

        (i)
           Each
          Lender will maintain in accordance with its usual practice an account or
          accounts evidencing the indebtedness of the Borrowers to such Lender resulting
          from each Loan made by such Lender from time to time, including the amounts
          of
          principal and interest payable and paid to such Lender from time to time
          hereunder.

         

        (ii)
           The
          Administrative Agent will also maintain accounts in which it will record
          (a) the
          amount of each Loan made hereunder, the type thereof and the Interest Period
          with respect thereto, (b) the amount of any principal or interest due and
          payable or to become due and payable from the Borrowers to each Lender
          hereunder, (c) the original stated amount of each LC and the amount of
          LC
          Obligations outstanding at any time, and (d) the amount of any sum received
          by
          the Administrative Agent hereunder from the Borrowers and each Lender's
          share
          thereof.

         

        (iii)
           The
          entries maintained in the accounts maintained pursuant to paragraphs (i)
          and
          (ii) above will be prima facie evidence of the existence and amounts of
          the
          Obligations therein recorded; provided, however, that the failure of the
          Administrative Agent or any Lender to maintain such accounts or any error
          therein will not in any manner affect the obligation of the Borrowers to
          repay
          the Obligations in accordance with their terms.

         

        (iv)
           Each
          Lender's Loans and interest therein will at all times be evidenced by a
          promissory note in the form of Exhibit A hereto (each a "Note") payable
          to the
          order of such Lender. 

         

        2.15  Telephonic
          Notices.
          The
          Borrowers hereby authorize the Lenders and the Administrative Agent to
          extend,
          convert or continue Advances, effect selections of types of Advances and
          to
          transfer funds based on telephonic notices made by any person or persons
          the
          Administrative Agent or any Lender in good faith believes to be acting
          on behalf
          of the Borrowers, it being understood that the foregoing authorization
          is
          specifically intended to allow Borrowing Notices and Conversion/Continuation
          Notices to be given telephonically. Unit agrees to deliver promptly to
          the
          Administrative Agent a written confirmation, if such confirmation is requested
          by the Administrative Agent or any Lender, of each telephonic notice signed
          by
          an Authorized Officer. If the written confirmation differs in any material
          respect from the action taken by the Administrative Agent and the Lenders,
          the
          records of the Administrative Agent and the Lenders will govern absent
          manifest
          error.

         

        2.16  Payment
          Date.
          Interest accrued on each Floating Rate Advance will be payable on the last
          day
          of each calendar month, commencing with the first such date to occur after
          the
          date hereof, on any date on which the Floating Rate Advance is prepaid,
          whether
          due to acceleration or otherwise, and at maturity. Interest accrued on
          that
          portion of the outstanding principal amount of any Floating Rate Advance
          converted into a Eurodollar Advance on a day other than a the foregoing
          monthly
          payment date will be payable on the date of conversion. Interest accrued
          on each
          one month (30 day), two months (60 days) or three months (90 days) Interest
          Period for Eurodollar Advance will be payable on the last day of its applicable
          Interest Period, on any date on which the Eurodollar Advance is prepaid,
          whether
          by 

         

        
          
            24

          

          
            
            

            
            

          

          
            
            
acceleration
            or otherwise, and at maturity. Interest accrued on each Eurodollar Advance
            having an Interest Period longer than three months (i.e., six months
            (180 days)
            Interest Period) will also be payable on the last day of each three-month
            interval during such Interest Period (each of the foregoing due dates
            for
            interest payments shall be deemed a "Payment Date"). Interest will be
            payable
            for the day an Advance is made but not for the day of any payment on
            the amount
            paid if payment is received prior to noon (local time) at the place of
            payment.
            If any payment of principal of or interest on an Advance will become
            due on a
            day which is not a Business Day, such payment will be made on the next
            succeeding Business Day and, in the case of a principal payment, such
            extension
            of time will be included in computing interest in connection with such
            payment.

        

         

        2.17  Notification
          of Advances, Interest Rates, and LC Requests.
          Promptly after receipt thereof, the Administrative Agent will notify each
          Lender
          of the contents of each Borrowing Notice, Conversion/Continuation Notice,
          and
          repayment notice received by it hereunder. Promptly after notice from the
          LC
          Issuer, the Administrative Agent will notify each Lender of the contents
          of each
          request for issuance of a LC thereunder. 

         

        2.18  Non-Receipt
          of Funds by the Administrative Agent.
          Unless
          Unit or a Lender, as the case may be, notifies the Administrative Agent
          prior to
          the date on which it is scheduled to make payment to the Administrative
          Agent of
          (i) in the case of a Lender, the proceeds of a Loan or (ii) in the case
          of the
          Borrowers, a payment of principal, interest or fees to the Administrative
          Agent
          for the account of the Lenders, that it does not intend to make such payment,
          the Administrative Agent may assume that such payment has been made. The
          Administrative Agent may, but will not be obligated to, make the amount
          of such
          payment available to the intended recipient in reliance upon such assumption.
          If
          such Lender or the Borrowers, as the case may be, have not in fact made
          such
          payment to the Administrative Agent, the recipient of such payment will,
          on
          demand by the Administrative Agent, repay to the Administrative Agent the
          amount
          so made available together with interest thereon in respect of each day
          during
          the period commencing on the date such amount was so made available by
          the
          Administrative Agent until the date the Administrative Agent recovers such
          amount at a rate per annum equal to (x) in the case of payment by a Lender,
          the
          Federal Funds Effective Rate for such day for the first three days and,
          thereafter, the interest rate applicable to the relevant Loan or (y) in
          the case
          of payment by the Borrowers, the interest rate applicable to the relevant
          Loan.

         

        2.19  Letters
          of Credit.

         

        2.19.1.  Issuance.
          The LC
          Issuer hereby agrees, on the terms and conditions set forth in this Agreement,
          to issue standby Letters of Credit (each, a "LC") and to renew, extend,
          increase, decrease or otherwise modify each LC ("Modify," and each such
          action a
          "Modification"), from time to time from and including the date of this
          Agreement
          and prior to the Facility Termination Date upon the request of Unit; provided
          that immediately after each such LC is issued or Modified, (i) the aggregate
          amount of the outstanding LC Obligations will not exceed the LC Sublimit
          at any
          time and (ii) the Aggregate Outstanding Credit Exposure will not exceed
          the
          Aggregate Commitment. No LC will have an expiry date later than one year
          after
          the issuance thereof; provided that if such expiry date is after the fifth
          Business Day prior to the Facility Termination Date, Borrowers will deposit
          with
          the Administrative Agent on such date immediately available funds in an
          amount
          equal to or greater than the undrawn amount of such LC.

         

        
          
            25

          

          
            
            

            
            

          

          
            
            

          

        

        2.19.2.  Participations.
          Upon
          the issuance or Modification by the LC Issuer of a LC in accordance with
          this
          Section 2.19, the LC Issuer will be deemed, without further action by any
          party
          hereto, to have unconditionally and irrevocably sold to each Lender, and
          each
          Lender will be deemed, without further action by any party hereto, to have
          unconditionally and irrevocably purchased from the LC Issuer, a participation
          in
          such LC (and each Modification thereof) and the related LC Obligations
          in
          proportion to its Pro Rata Share.

         

        2.19.3.  Notice.
          Subject
          to Section 2.19.1, Unit will give the LC Issuer notice prior to 10:00 a.m.
          (Tulsa time) at least one Business Day prior to the proposed date of issuance
          or
          Modification of each LC, specifying the beneficiary, the proposed date
          of
          issuance (or Modification) and the expiry date of such LC, and describing
          the
          proposed terms of such LC and the nature of the transactions proposed to
          be
          supported thereby. Upon receipt of such notice, the LC Issuer will promptly
          notify the Administrative Agent, and the Administrative Agent will promptly
          notify each Lender, of the contents thereof and of the amount of such Lender's
          participation in such proposed LC. The issuance or Modification by the
          LC Issuer
          of any LC will, in addition to the conditions precedent set forth in Article
          IV
          (the satisfaction of which the LC Issuer will have no duty to ascertain),
          be
          subject to the conditions precedent that such LC will be satisfactory to
          the LC
          Issuer and that the Borrowers will have executed and delivered such LC
          Application agreement and/or such other instruments and agreements relating
          to
          such LC as the LC Issuer will have reasonably requested (each, a "LC
          Application"). In the event of any conflict between the terms of this Agreement
          and the terms of any LC Application, the terms of this Agreement will
          control.

         

        2.19.4.  LC
          Fees.
          The
          Borrowers will pay to the Administrative Agent, for the account of the
          Lenders
          ratably in accordance with their respective Pro Rata Shares, a letter of
          credit
          fee at the time of issuance, calculated at an amount equal to the greater
          of
          $500.00 or a per annum rate equal to the Applicable Margin for Eurodollar
          Loans
          on the stated amount of such LC (each such fee described in this sentence
          an "LC
          Fee"). The Borrowers will also pay to the LC Issuer for its own account
          at the
          time of issuance of each LC, a fronting fee in an amount equal to 0.125%
          per
          annum of the initial stated amount, and documentary and processing charges
          in
          connection with the issuance or Modification of and draws under LCs in
          accordance with the LC Issuer's standard schedule for such charges as in
          effect
          from time to time.

         

        2.19.5.  Administration;
          Reimbursement by Lenders.
          Upon
          receipt from the beneficiary of any LC of any demand for payment under
          such LC,
          the LC Issuer will notify the Administrative Agent and the Administrative
          Agent
          will promptly notify the Borrowers and each other Lender as to the amount
          to be
          paid by the LC Issuer as a result of such demand and the proposed payment
          date
          (the "LC Payment Date"). The responsibility of the LC Issuer to the Borrowers
          and each Lender will be only to determine that the documents (including
          each
          demand for payment) delivered under each LC in connection with such presentment
          will be in conformity in all material respects with such LC. In the absence
          of
          any gross negligence or willful misconduct by the LC Issuer, each Lender
          will be
          unconditionally and irrevocably liable without regard to the occurrence
          of any
          Default or any condition precedent whatsoever, to reimburse the LC Issuer
          on
          demand for (i) such Lender's 

         

        
          
            26

          

          
            
            

            
            

          

          
            
            
Pro
            Rata
            Share of the amount of each payment made by the LC Issuer under each
            LC to the
            extent such amount is not reimbursed by the Borrowers pursuant to Section
            2.19.6
            below, plus (ii) interest on the foregoing amount to be reimbursed by
            such
            Lender, for each day from the date of the LC Issuer's demand for such
            reimbursement (or, if such demand is made after 11:00 a.m. (Tulsa time)
            on such
            date, from the next succeeding Business Day) to the date on which such
            Lender
            pays the amount to be reimbursed by it, at a rate of interest per annum
            equal to
            the Federal Funds Effective Rate for the first three days and, thereafter,
            at a
            rate of interest equal to the rate applicable to Floating Rate
            Advances.

        

         

        2.19.6.  Reimbursement
          by Borrowers.
          The
          Borrowers will be irrevocably and unconditionally obligated to reimburse
          the LC
          Issuer on or before the applicable LC Payment Date for any amounts to be
          paid by
          the LC Issuer upon any drawing under any LC, without presentment, demand,
          protest or other formalities of any kind; provided that neither the Borrowers
          nor any Lender will hereby be precluded from asserting any claim for direct
          (but
          not consequential) damages suffered by the Borrowers or such Lender to
          the
          extent, but only to the extent, caused by (i) the willful misconduct or
          gross
          negligence of the LC Issuer in determining whether a request presented
          under any
          LC issued by it complied with the terms of such LC or (ii) the LC Issuer's
          failure to pay under any LC issued by it after the presentation to it of
          a
          request strictly complying with the terms and conditions of such LC. All
          such
          amounts paid by the LC Issuer and remaining unpaid by the Borrowers will
          bear
          interest, payable on demand, for each day until paid at a rate per annum
          equal
          to (x) the rate applicable to Floating Rate Advances for such day if such
          day
          falls on or before the applicable LC Payment Date and (y) the sum of two
          hundred
          basis points (2.0%) plus the rate applicable to Floating Rate Advances
          for such
          day if such day falls after such LC Payment Date. The LC Issuer will pay
          to each
          Lender ratably in accordance with its Pro Rata Share all amounts received
          by it
          from the Borrowers for application in payment, in whole or in part, of
          the
          Reimbursement Obligation in respect of any LC issued by the LC Issuer,
          but only
          to the extent such Lender has made payment to the LC Issuer in respect
          of such
          LC pursuant to Section 2.19.5. Subject to the terms and conditions of this
          Agreement, the Borrowers may request an Advance hereunder for the purpose
          of
          satisfying any Reimbursement Obligation. 

         

        2.19.7.  Obligations
          Absolute.
          The
          Borrowers' obligations under this Section 2.19 will be absolute and
          unconditional under any and all circumstances and irrespective of any setoff,
          counterclaim or defense to payment which the Borrowers may have or have
          had
          against the LC Issuer, any Lender or any beneficiary of a LC. The Borrowers
          further agree with the LC Issuer and the Lenders that the LC Issuer and
          the
          Lenders will not be responsible for, and the Borrowers' Reimbursement Obligation
          in respect of any LC will not be affected by, among other things, the validity
          or genuineness of documents or of any endorsements thereon, even if such
          documents should in fact prove to be in any or all respects invalid, fraudulent
          or forged, or any dispute between or among the Borrowers, any of their
          Affiliates, the beneficiary of any LC or any financing institution or other
          party to whom any LC may be transferred or any claims or defenses whatsoever
          of
          the Borrowers or of any of their Affiliates against the beneficiary of
          any LC or
          any such transferee. The LC Issuer will not be liable for any error, omission,
          interruption or delay in transmission, dispatch or delivery of any message
          or
          advice, however transmitted, in connection with any LC. The Borrowers agree
          that
          any action taken 

         

        
          
            27

          

          
            
            

            
            

          

          
            
            
or
            omitted by the LC Issuer or any Lender under or in connection with each
            LC and
            the related drafts and documents, if done without gross negligence or
            willful
            misconduct, will be binding upon the Borrowers and will not put the LC
            Issuer or
            any Lender under any liability to the Borrowers. Nothing in this Section
            2.19.7
            is intended to limit the right of the Borrowers to make a claim against
            the LC
            Issuer for damages as contemplated by the proviso to the first sentence
            of
            Section 2.19.6.

        

         

        2.19.8.  Actions
          of LC Issuer.
          The LC
          Issuer will be entitled to rely, and will be fully protected in relying,
          upon
          any LC, draft, writing, resolution, notice, consent, certificate, affidavit,
          letter, cablegram, telegram, telecopy, telex or teletype message, statement,
          order or other document believed by it to be genuine and correct and to
          have
          been signed, sent or made by the proper Person or Persons, and upon advice
          and
          statements of legal counsel, independent accountants and other experts
          selected
          by the LC Issuer. The LC Issuer will be fully justified in failing or refusing
          to take any action under this Agreement unless it will first have received
          such
          advice or concurrence of the Required Lenders as it reasonably deems appropriate
          or it will first be indemnified to its reasonable satisfaction by the Lenders
          against any and all liability and expense which may be incurred by it by
          reason
          of taking or continuing to take any such action. Notwithstanding any other
          provision of this Section 2.19, the LC Issuer will in all cases be fully
          protected in acting, or in refraining from acting, under this Agreement
          in
          accordance with a request of the Required Lenders, and such request and
          any
          action taken or failure to act pursuant thereto will be binding upon the
          Lenders
          and any future holders of a participation in any LC.

         

        2.19.9.  Indemnification.
          The
          Borrowers will indemnify and hold harmless each Lender, the LC Issuer and
          the
          Administrative Agent, and their respective directors, officers, Administrative
          Agents and employees from and against any and all claims and damages, losses,
          liabilities, costs or expenses which such Lender, the LC Issuer or the
          Administrative Agent may incur (or which may be claimed against such Lender,
          the
          LC Issuer or the Administrative Agent by any Person whatsoever) by reason
          of or
          in connection with the issuance, execution and delivery or transfer of
          or
          payment or failure to pay under any LC or any actual or proposed use of
          any LC,
          including, without limitation, any claims, damages, losses, liabilities,
          costs
          or expenses which the LC Issuer may incur by reason of or in connection
          with (i)
          the failure of any other Lender to fulfill or comply with its obligations
          to the
          LC Issuer hereunder (but nothing herein contained will affect any rights
          the
          Borrowers may have against any defaulting Lender) or (ii) by reason of
          or on
          account of the LC Issuer issuing any LC which specifies that the term
          "Beneficiary" included therein includes any successor by operation of law
          of the
          named Beneficiary, but which LC does not require that any drawing by any
          such
          successor Beneficiary be accompanied by a copy of a legal document, satisfactory
          to the LC Issuer, evidencing the appointment of such successor Beneficiary;
          provided that the Borrowers will not be required to indemnify any Lender,
          the LC
          Issuer or the Administrative Agent for any claims, damages, losses, liabilities,
          costs or expenses to the extent, but only to the extent, caused by (x)
          the
          willful misconduct or gross negligence of the LC Issuer in determining
          whether a
          request presented under any LC complied with the terms of such LC or (y)
          

         

        
          
            28

          

          
            
            

            
            

          

          
            
            
the
            LC
            Issuer's failure to pay under any LC after the presentation to it of
            a request
            strictly complying with the terms and conditions of such LC. Nothing
            in this
            Section 2.19.9 is intended to limit the obligations of the Borrowers
            under any
            other provision of this Agreement. 

        

         

        2.19.10.  Lenders'
          Indemnification.
          Each
          Lender will, ratably in accordance with its Pro Rata Share, indemnify the
          LC
          Issuer, its Affiliates and their respective directors, officers, Administrative
          Agents and employees (to the extent not reimbursed by the Borrowers) against
          any
          cost, expense (including reasonable counsel fees and disbursements), claim,
          demand, action, loss or liability (except such as result from such indemnitees'
          gross negligence or willful misconduct or the LC Issuer's failure to pay
          under
          any LC after the presentation to it of a request strictly complying with
          the
          terms and conditions of the LC) that such indemnitees may suffer or incur
          in
          connection with this Section 2.19 or any action taken or omitted by such
          indemnitees hereunder.

         

        2.20  Additional
          Agency Fees.
          Borrowers will pay certain additional fees to the Administrative Agent
          in the
          amounts and on the terms described in the Agent Fee Letter.

         

        2.21  Loan
          Purposes.
          Advances may be requested by Unit on behalf of the Borrowers for (i) refinancing
          in full any Existing Indebtedness and extinguishment of the commitments
          issued
          pursuant to the Existing Credit Agreement, (ii) general working capital
          requirements for (a) exploration, development, production and acquisition
          of Oil
          and Gas Properties, (b) contract drilling services, and (c) gas gathering
          systems, gas processing plants and other midstream assets, (iii) issuance
          of
          standby Letters of Credit, and (iv) general corporate purposes of the Borrowers.
          

         

        ARTICLE
          III

        YIELD
          PROTECTION; TAXES

         

        3.1  Yield
          Protection.
          If, on
          or after the date of this Agreement, the adoption of any law or any governmental
          or quasi-governmental rule, regulation, policy, guideline or directive
          (whether
          or not having the force of law), or any change in the interpretation or
          administration thereof by any governmental or quasi-governmental authority,
          central bank or comparable agency charged with the interpretation or
          administration thereof, or compliance by any Lender or applicable banking
          address or the LC Issuer with any request or directive (whether or not
          having
          the force of law) of any such authority, central bank or comparable
          agency:

         

        (i)
           subjects
          any Lender or the LC Issuer to any Taxes, or changes the basis of taxation
          of
          payments (other than Excluded Taxes) to any Lender or the LC Issuer regarding
          its Eurodollar Loans or participations in Eurodollar Advances, or

         

        (ii)
           imposes
          or increases or deems applicable any reserve, assessment, insurance charge,
          special deposit or similar requirement against assets of, deposits with
          or for
          the account of, or credit extended by, any Lender or the LC Issuer (other
          than
          reserves and assessments taken into account in determining the interest
          rate
          applicable to Eurodollar Advances), or

         

        (iii)
           imposes
          any other condition the result of which is to increase the cost to any
          Lender,
          the interbank eurocurrency deposit market or the LC Issuer of making, funding
          or
          maintaining its Eurodollar Loans, 

         

        
          
            29

          

          
            
            

            
            

          

          
            
            
or
            of
            issuing or participating in LCs, or reduces any amount receivable by
            any Lender,
            the interbank eurocurrency deposit market or the LC Issuer in connection
            with
            its Eurodollar Loans, LCs or participations therein, or requires any
            Lender, the
            interbank eurocurrency deposit market or the LC Issuer to make any payment
            calculated by reference to the amount of Eurodollar Loans, LCs or participations
            therein held or interest or LC Fees received by it, by an amount deemed
            material
            by such Lender or the LC Issuer as the case may be and the result of
            any of the
            foregoing is to increase the cost to such Lender or the LC Issuer, as
            the case
            may be, of making or maintaining its Eurodollar Loans or Commitment or
            of
            issuing or participating in LCs or to reduce the return received by such
            Lender,
            the interbank eurocurrency deposit market or the LC Issuer, as the case
            may be,
            in connection with such Eurodollar Loans, Commitment, LCs or participations
            therein, 

        

         

        then,
          within 15 days of demand by the Administrative Agent or the LC Issuer,
          as the
          case may be, the Borrowers will pay the Administrative Agent for the account
          of
          such Lender or the LC Issuer, as the case may be, such additional amount
          or
          amounts as will compensate such Lender or the LC Issuer, as the case may
          be, for
          such increased cost or reduction in amount received.

         

        3.2  Changes
          in Capital Adequacy Regulations.
          If a
          Lender or the LC Issuer determines, in good faith, the amount of capital
          required or expected to be maintained by such Lender or the LC Issuer,
          or the LC
          Issuer, or any corporation controlling such Lender or the LC Issuer is
          increased
          as a result of a Change, then, within 15 days of demand by such Lender
          or the LC
          Issuer, the Borrowers will pay such Lender or the LC Issuer the amount
          necessary
          to compensate for any shortfall in the rate of return on the portion of
          such
          increased capital which such Lender or the LC Issuer determined is attributable
          to this Agreement, its Outstanding Credit Exposure or its Commitment to
          make
          Loans and issue or participate in LCs, as the case may be, hereunder (after
          taking into account such Lender's or the LC Issuer's policies as to capital
          adequacy). "Change" means (i) any change after the date of this Agreement
          in the
          Risk-Based Capital Guidelines or (ii) any adoption of or change in any
          other
          law, governmental or quasi-governmental rule, regulation, policy, guideline,
          interpretation, or directive (whether or not having the force of law) after
          the
          date of this Agreement which affects the amount of capital required or
          expected
          to be maintained by any Lender or the LC Issuer or any corporation controlling
          any Lender or the LC Issuer. "Risk-Based Capital Guidelines" means (i)
          the
          risk-based capital guidelines in effect in the United States on the date
          of this
          Agreement, including transition rules, and (ii) the corresponding capital
          regulations promulgated by regulatory authorities outside the United States
          implementing the July 1988 report of the Basle Committee on Banking Regulation
          and Supervisory Practices Entitled "International Convergence of Capital
          Measurements and Capital Standards," including transition rules, and any
          amendments to such regulations adopted prior to the date of this
          Agreement.

         

        3.3  Taxes.

         

        (i)
           All
          payments by the Borrowers to or for the account of any Lender, the LC Issuer
          or
          the Administrative Agent hereunder or under any Note or LC Application
          will be
          made free and clear of and without deduction for any and all Taxes. If
          the
          Borrowers are required by law to deduct any Taxes from any payment to a
          Lender,
          the LC Issuer or the Administrative Agent, to the extent not prohibited
          by
          applicable law, 

         

        
          
            30

          

          
            
            

            
            

          

          
            
            

          

           

          (a)
            the
            payment will be increased so that after making all required deductions
            (including deductions applicable to payments under this Section 3.3)
            such
            Lender, the LC Issuer or the Administrative Agent (as the case may be)
            receives
            an amount equal to the payment it would have received had no deductions
            been
            made, (b) the Borrowers will make such deductions, (c) the Borrowers
            will pay
            the full amount deducted to the relevant authority in accordance with
            applicable
            law and (d) the Borrowers will furnish to the Administrative Agent a
            copy of a
            receipt evidencing payment within 30 days after the payment is
            made.

        

         

        (ii)
           In addition, the Borrowers hereby agree to pay any present or future stamp
          or documentary taxes and any other excise or property taxes, charges or
          similar
          levies which arise from any payment made under this Agreement or under
          any Note
          or LC Application or from the execution or delivery of, or otherwise with
          respect to, this Agreement or any Note or LC Application ("Other
          Taxes").

         

        (iii)
           The
          Borrowers hereby agree to indemnify the Administrative Agent, the LC Issuer
          and
          each Lender for the full amount of Taxes or Other Taxes (including, without
          limitation, any Taxes or Other Taxes imposed on payments under this Section
          3.3)
          paid by the Administrative Agent, the LC Issuer or such Lender and any
          liability
          (including penalties, interest and expenses) arising therefrom or with
          respect
          thereto. Payments properly due under this indemnification will be made
          within 30
          days following the date the Administrative Agent, the LC Issuer or such
          Lender
          requests payment.

         

        (iv)
           If
          the
          U.S. Internal Revenue Service or any other governmental authority of the
          United
          States or any other country or any political subdivision thereof asserts
          a claim
          that the Agent did not properly withhold tax from payments to or for the
          account
          of any Lender (because the appropriate form was not delivered or properly
          completed, because such Lender failed to notify the Agent of a change in
          circumstances which rendered its exemption from withholding ineffective,
          or for
          any other reason), such Lender will indemnify the Agent fully for all amounts
          paid, directly or indirectly, by the Agent as tax, withholding therefor,
          or
          otherwise, including penalties and interest, and including taxes imposed
          by any
          jurisdiction on amounts payable to the Agent under this subsection, together
          with all costs and expenses related thereto (including attorneys fees and
          time
          charges of attorneys for the Agent, which attorneys may be employees of
          the
          Agent). The obligations of the Lenders under this Section 3.3(iv) will
          survive
          the payment of the Obligations and termination of this Agreement. Any liability
          under this subsection (iv) will not be a liability of the Borrowers

         

        3.4  Availability
          of Eurodollar Advances.
          If any
          Lender determines that maintenance of its Eurodollar Loans at a suitable
          banking
          location would violate any applicable law, rule, regulation, or directive,
          whether or not having the force of law, or if the Required Lenders determine
          that (i) deposits of a type and maturity appropriate to match fund Eurodollar
          Advances are not available or (ii) the interest rate applicable to Eurodollar
          Advances does not accurately reflect the cost of making or maintaining
          Eurodollar Advances, then the Administrative Agent will suspend the availability
          of Eurodollar Advances and require any affected Eurodollar Advances to
          be repaid
          or converted to Floating Rate Advances, subject to the payment of any funding
          indemnification amounts required by Section 3.5.

         

        
          
            31

          

          
            
            

            
            

          

          
            
            

          

        

        3.5  Funding
          Indemnification.
          If any
          payment of a Eurodollar Advance occurs on a date which is not the last
          day of
          the applicable Interest Period, whether because of acceleration, prepayment
          or
          otherwise, or a Eurodollar Advance is not made on the date specified by
          the
          Borrowers for any reason other than default by the Lenders, the Borrowers
          will
          indemnify each Lender for any resulting loss or cost incurred by
          it.

         

        3.6  Replacement
          Lenders.

         

        3.6.1.  If
          any
          Lender (i) has notified Unit and the Administrative Agent of the circumstances
          described in Sections 3.1 or 3.4, (ii) has required Unit to make payments
          for
          Taxes under Section 3.3, (iii) defaults in its obligations to fund advances
          hereunder or participate in LC Exposure, (iv) is a Non-Extending Lender
          pursuant
          to Section 3.7, or (v) objects to an increase in the Borrowing Base proposed
          by
          the Administrative Agent pursuant to the provisions of Section 2.6.2, then
          Unit
          may, at its sole cost, expense and effort, provided that no Event of Default
          then exists, unless such Lender has notified Unit and the Administrative
          Agent
          in writing that the circumstances giving rise to such notice, event or
          circumstance no longer apply or such Lender otherwise withdraws its request
          for
          such additional compensation or approves the proposed Borrowing Base increase
          tendered by the Administrative Agent, terminate, in whole but not in part,
          the
          Commitment of any Lender (other than the Administrative Agent) (in any
          such
          case, the "Terminated Lender") at any time within ninety (90) days of such
          Lender notification, upon ten (10) days' prior written notice to the Terminated
          Lender and the Administrative Agent (such notice referred to herein as
          a "Notice
          of Termination").

         

        3.6.2.  In
          order
          to effect the termination of the Commitment of the Terminated Lender, Unit
          shall: (i) obtain an agreement with one or more Lenders to increase their
          Commitment or Commitments and/or (ii) request any one or more other banking
          or
          lending institutions to become parties to this Agreement in place and instead
          of
          such Terminated Lender and agree to accept a Commitment or Commitments;
          provided, however, that such one or more other banking or lending institutions
          are reasonably acceptable to the Administrative Agent and become parties
          by
          executing an Assignment (the Lenders or other banking institutions that
          agree to
          accept in whole or in part the Commitment of the Terminated Lender being
          referred to herein as the "Replacement Lenders") without recourse from
          the
          Terminated Lender, such that the aggregate increased and/or accepted Commitments
          of the Replacement Lenders under clauses (i) and (ii) above equal the Commitment
          of the Terminated Lender.

         

        3.6.3.  The
          Notice of Termination shall include the name of the Terminated Lender,
          the date
          the termination will occur (the "Lender Termination Date"), and within
          twenty
          (20) days of the Notice of Termination, Unit shall designate in writing
          the
          Replacement Lender or Replacement Lenders to which the Terminated Lender
          will
          assign its Commitment and, if there will be more than one Replacement Lender,
          the portion of the Terminated Lender's Commitment to be assigned to each
          Replacement Lender.

         

        3.6.4.  On
          the
          Lender Termination Date, (i) the Terminated Lender shall by execution and
          delivery of an Assignment assign, without recourse, its Commitment and
          all of
          its interests, rights and 

         

        
          
            32

          

          
            
            

            
            

          

          
            
            
obligations
            under this Agreement and the related Loan Documents to the Replacement
            Lender or
            Replacement Lenders (pro rata, if there is more than one Replacement
            Lender, in
            proportion to the Pro Rata Share of the Terminated Lender's Commitment
            to be
            assigned to each Replacement Lender) indicated in the Notice of Termination
            and
            shall assign to the Replacement Lender or Replacement Lenders each of
            its Loans
            (if any) then outstanding and participation interests in Letters of Credit
            (if
            any) then outstanding pro rata as aforesaid), (ii) the Terminated Lender
            shall
            endorse its Note, payable without recourse, representation or warranty
            to the
            order of the Replacement Lender or Replacement Lenders (Pro Rata Share
            as
            aforesaid), (iii) the Replacement Lender or Replacement Lenders shall
            purchase
            the Note held by the Terminated Lender (pro rata as aforesaid) at a price
            equal
            to the unpaid principal amount thereof (including its participation in
            and Pro
            Rata Share of the LC Exposure) plus interest, facility fees, Commitment
            Fee and
            other fees accrued and unpaid to the Lender Termination Date, and (iv)
            the
            Replacement Lender or Replacement Lenders will thereupon (pro rata as
            aforesaid)
            succeed to and be substituted in all respects for the Terminated Lender
            with
            like effect as if becoming a Lender pursuant to the terms of Section
            14.6, and
            the Terminated Lender will have the rights and benefits of an assignor
            under
            Section 14.6. To the extent not in conflict, the terms of Section 14.6
            shall
            supplement the provisions of this Section 3.6.4. For each assignment
            made under
            this Section 3.6, the Replacement Lender shall pay to the Agent the processing
            fee provided for in Section 14.6. The Borrower will be responsible for
            the
            concurrent payment of any breakage costs associated with termination
            and
            Replacement Lenders, as set forth in Section 3.6.

        

         

        3.7  Extension
          of Maturity Date.

         

        3.7.1.  Requests
          for Extension.
          Unit
          may, by notice to the Administrative Agent (who shall promptly notify the
          Lenders) not earlier than eighteen (18) months and not later than fifteen
          (15)
          months prior to the stated Facility Termination Date then in effect hereunder
          (the "Existing Maturity Date"), request that each Lender extend such Lender's
          Facility Termination Date for an additional one (1) year period from the
          Existing Maturity Date; provided that, the Borrowers may request only two
          such
          extensions under this Agreement and Borrowers shall pay at the extension
          closing
          of such extension a reasonable extension fee, the amount of which shall
          be
          negotiated and agreed to by the Lenders and Unit. 

         

        3.7.2.  Lender
          Elections to Extend.
          Each
          Lender, acting in its sole and individual discretion, shall, by notice
          to the
          Administrative Agent given not later than the date (the "Notice Date")
          that is
          sixty (60) days after Unit has given notice in accordance with Section
          3.7.1,
          advise the Administrative Agent whether or not such Lender agrees to such
          extension (and each Lender that determines not to so extend its Facility
          Termination Date (a "Non Extending Lender") shall notify the Administrative
          Agent of such fact promptly after such determination (but in any event
          no later
          than the Notice Date) and any Lender that does not so advise the Administrative
          Agent on or before the Notice Date shall be deemed to be a Non Extending
          Lender.
          The election of any Lender to agree to such extension shall not obligate
          any
          other Lender to so agree.

         

        
          
            33

          

          
            
            

            
            

          

          
            
            

          

        

        3.7.3.  Notification
          by Administrative Agent.
          The
          Administrative Agent shall notify the Borrower of each Lender’s determination
          under this Section no later than the date seven (7) days after the Notice
          Date
          (or, if such date is not a Business Day, on the next succeeding Business
          Day).

         

        3.7.4.  Additional
          Commitment Lenders.
          The
          Borrower shall have the right on or before the Existing Maturity Date to
          replace
          each Non Extending Lender with, and add as "Lenders" under this Agreement
          in
          place thereof, one or more Replacement Lenders (each, an "Additional Commitment
          Lender") as provided in Section 3.6, each of which Additional Commitment
          Lenders
          shall have entered into an Assignment and Assumption pursuant to which
          such
          Additional Commitment Lender shall, effective as of the Existing Maturity
          Date,
          undertake a Commitment (and, if any such Additional Commitment Lender is
          already
          a Lender, its Commitment shall be in addition to such Lender’s Commitment
          hereunder on such date).

         

        3.7.5.  Minimum
          Extension Requirement.
          If (and
          only if) the total of the Commitments of the Lenders that have agreed so
          to
          extend their Facility Termination Date and the additional Commitments of
          the
          Additional Commitment Lenders shall be more than 50% of the aggregate amount
          of
          the Commitments in effect immediately prior to the Existing Maturity Date,
          then,
          effective as of the Existing Maturity Date, the Maturity Date of each Extending
          Lender and of each Additional Commitment Lender shall be extended to the
          date
          falling one year after the Existing Maturity Date (except that, if such
          date is
          not a Business Day, such Facility Termination Date as so extended shall
          be the
          next preceding Business Day) and each Additional Commitment Lender shall
          thereupon become a "Lender" for all purposes of this Agreement.

         

        3.7.6.  Conditions
          to Effectiveness of Extensions.
          Notwithstanding the foregoing, the extension of the Facility Termination
          Date
          pursuant to this Section shall not be effective with respect to any Lender
          unless:

         

        (i) no
          Default or Event of Default shall have occurred and be continuing on the
          date of
          such extension and after giving effect thereto;

         

        (ii) the
          representations and warranties contained in this Agreement are true and
          correct
          on and as of the date of such extension and after giving effect thereto,
          as
          though made on and as of such date (or, if any such representation or warranty
          is expressly stated to have been made as of a specific date, as of such
          specific
          date); and

         

        (iii) on
          the
          Facility Termination Date of each Non-Extending Lender, the Borrower shall
          prepay any Obligations outstanding on such date to such Non-Extending Lender
          (and pay any additional amounts required pursuant to Section 3.1).

         

        3.7.7.  Conflicting
          Provisions.
          This
          Section shall supersede any provisions in Section 15.3 to the
          contrary.

         

        
          
            34

          

          
            
            

            
            

          

          
            
            

          

        

        ARTICLE
          IV

        CONDITIONS
          PRECEDENT

         

        4.1  Initial
          Credit Extension.
          The
          Lenders will not be required to make the initial Credit Extension hereunder
          unless:

         

        4.1.1.  Unit
          has
          furnished to the Administrative Agent at its main banking offices in Tulsa,
          Oklahoma, each of the following, duly executed by the applicable Credit
          Parties
          and delivered in form, substance and date satisfactory to the Administrative
          Agent, with sufficient copies for all of the Lenders:

         

        (i)
           Copies
          of
          the certificate of incorporation or certificate of organization or formation,
          as
          applicable, of each of the Credit Parties, together with all amendments,
          and a
          certificate of good standing, each certified by the appropriate governmental
          officer in their respective jurisdiction of organization.

         

        (ii) Copies,
          certified by the Secretary or Assistant Secretary of the Credit Parties,
          of
          their respective by-laws or operating agreement or regulations, as applicable,
          and of their respective Board of Directors' or members/managers' resolutions
          and
          of resolutions or actions of any other body authorizing the execution of
          the
          Loan Documents to which each Borrower is a party.

         

        (iii)
           An
          incumbency certificate, executed by the Secretary or Assistant Secretary
          of the
          Credit Parties, which will identify by name and title and bear the signatures
          of
          the Authorized Officers and any other officers of the Borrower authorized
          to
          sign the Loan Documents to which such Borrower is a party, with the
          Administrative Agent and the Lenders being entitled to rely on such certificate
          until informed of any change in writing by such Borrower.

         

        (iv)
           A
          certificate, signed by the chief financial officer of Unit (on behalf of
          all of
          the Credit Parties), stating that on the initial Credit Extension Date
          no
          Default has occurred and is continuing, that all representations and warranties
          in the Loan Documents are true and correct and that no Material Adverse
          Effect
          has occurred.

         

        (v)
           A
          favorable written closing opinion of outside counsel to the Borrowers,
          addressed
          to the Administrative Agent and the Lenders in form, scope and substance
          satisfactory to the Administrative Agent.

         

        (vi) This
          Agreement and a Note payable to the order of each Lender and, the Subsidiary
          Guaranty by any Material Subsidiary substantially in the form of Exhibit
          E of
          this Agreement.

         

        (vii)
           Arrangements
          satisfactory to the Administrative Agent, the LC Issuer and any applicable
          beneficiary concerning payment in full of any Indebtedness owing under
          the
          Existing Credit Agreement to the Existing Lenders, including all interest
          thereon and that any unexpired letters of credit issued thereunder have
          been
          terminated or otherwise collateralized to the satisfaction of the 

         

        
          
            35

          

          
            
            

            
            

          

          
            
            

          

          Administrative
            Agent and the LC Issuer under the Existing Credit Agreement, including
            evidence
            satisfactory to Unit and the Administrative Agent of the cancellation
            of the
            Commitments issued under the Existing Credit Agreement, termination of
            the
            credit facilities established under the Existing Credit
            Agreement.

        

         

        (viii) Such
          other documents, certificates, instruments and information as any Lender
          or its
          counsel may have reasonably requested and satisfactory review by the Lenders
          of
          all environmental, litigation, insurance and other matters deemed appropriate
          by
          the Administrative Agent, including without limitation, data sufficient
          for
          analysis and projection of the Superior Cash Flow and/or the Oil and Gas
          Properties portion of the Borrowing Base Property (division orders, production
          payment checks or other evidence of payment by the purchaser of production)
          as
          reasonably deemed necessary by the Administrative Agent or the Required
          Lenders.

         

        (ix) All
          facility fees owed to the Lenders and all fees and expenses owing by Borrowers
          to Administrative Agent will have been paid, including the reasonable attorneys
          fees and expenses of legal counsel for the Administrative Agent that have
          been
          billed and submitted to the Agent as of the Closing Date (such amount payable
          by
          Borrowers being subject to the term sheet). 

         

        4.1.2 The
          Administrative Agent shall obtain the surrender to the Agent of all notes
          held
          by the lender parties to the Existing Credit Agreement by virtue of the
          refinancing by the Lenders in accordance with Schedule 2.

         

        4.2  Each
          Credit Extension.
          The
          Lenders will not be required to make any Credit Extension unless on the
          applicable Credit Extension Date:

         

        (i)
           There
          will exist no Default and the representations and warranties contained
          in
          Article V are then true and correct in all material respects as of such
          Credit
          Extension Date except to the extent a representation or warranty is stated
          to
          relate solely to an earlier date, in which case such representation or
          warranty
          will have been true and correct on and as of such earlier date.

         

        (ii) All
          legal
          matters incident to the making of such Credit Extension will be satisfactory
          to
          the Administrative Agent.

         

        (iii) No
          Material Adverse Effect will have occurred to, and no event or circumstance
          will
          have occurred that could reasonably be expected to cause a Material Adverse
          Effect to, Unit's consolidated financial condition or to the Credit Parties'
          businesses since the date of the financial statements most recently delivered
          pursuant to Sections 6.1 (i) and (ii) hereof.

         

        (iv) The
          making of such Loan or the issuance of such Letter of Credit will not be
          prohibited by any Law and will not subject any Lender or any LC Issuer
          to any
          penalty or other adverse condition under any Law.

         

        
          
            36

          

          
            
            

            
            

          

          
            
            

          

        

        (v) Each
          Borrower and Subsidiary Guarantor will be solvent.

         

        (vi) Administrative
          Agent will have received all documents and instruments which Administrative
          Agent has then reasonably requested, in addition to those described in
          Section
          4.1, as to (i) the accuracy and validity of or compliance with all
          representations, warranties, and covenants made by any Borrower or Subsidiary
          Guarantor in this Agreement in all material respects and the other Loan
          Documents, and (ii) the satisfaction of all conditions contained in this
          Agreement. 

         

        Each
          Borrowing Notice or request for issuance of a LC will constitute a
          representation and warranty by the Borrowers that the conditions contained
          in
          Section 4.2 have been satisfied.

         

        ARTICLE
          V

        REPRESENTATIONS
          AND WARRANTIES

         

        The
          Borrowers represent and warrant to the Lenders that:

         

        5.1  Existence
          and Good Standing.
          Each
          Credit Party is a corporation or limited liability company, duly and properly
          incorporated or organized, as the case may be, validly existing and (to
          the
          extent such concept applies to such entity) in good standing under the
          laws of
          its jurisdiction of incorporation or organization and has all requisite
          authority to carry on its business in each jurisdiction as now
          conducted.

         

        5.2  Authorization
          and Validity.
          Each
          Credit Party has the power and authority and legal right to execute and
          deliver
          the Loan Documents to which it is a party and to perform its obligations
          thereunder. The execution and delivery by each Credit Party of the Loan
          Documents to which it is a party and the performance of its obligations
          thereunder have been duly authorized by proper corporate proceedings. The
          Loan
          Documents to which a Credit Party is a party constitute legal, valid and
          binding
          obligations of such Credit Party enforceable against such Credit Party
          in
          accordance with their terms, except as enforceability may be limited by
          bankruptcy, insolvency or similar laws affecting the enforcement of creditors'
          rights generally.

         

        5.3  No
          Conflict; Government Consent.
          Neither
          the execution and delivery by any of the Credit Parties of the Loan Documents
          to
          which it is a party, nor the consummation of the transactions contemplated
          by
          the Loan Documents, nor compliance with the provisions of the Loan Documents
          will violate in any material respect (i) any law, rule, regulation, order,
          writ,
          judgment, injunction, decree or award binding on the Credit Parties or
          (ii) any
          of the Credit Parties' articles or certificate of incorporation, partnership
          agreement, certificate of partnership, articles or certificate of organization,
          by-laws, or operating or other management agreement, as the case may be,
          or
          (iii) the provisions of any indenture, instrument or agreement to which
          any of
          the Credit Parties is a party or is subject, or by which it, or its Property,
          is
          bound, or conflict with or constitute a default, or result in, or require,
          the
          creation or imposition of any Lien in, of or on the Property of the Credit
          Parties pursuant to the terms of any such indenture, instrument or agreement.
          No
          order, consent, adjudication, approval, license, authorization, or validation
          of, or filing, recording or registration with, or exemption by, or other
          action
          in respect of any governmental or public body or authority, or any subdivision
          thereof, which has not been obtained by the Credit Parties, is required
          to be
          obtained by the Credit Parties in connection with 

         

        
          
            37

          

          
            
            

            
            

          

          
            
            
the
            execution and delivery of the Loan Documents to which they are parties,
            the
            borrowings under this Agreement, the payment and performance by the Borrowers
            of
            the Obligations or the legality, validity, binding effect or enforceability
            of
            any of the Loan Documents.

        

         

        5.4  Financial
          Statements.
          The
          audited annual and unaudited quarterly, consolidated financial statements
          of
          Unit and its consolidated Subsidiaries previously delivered to the Lenders
          were
          prepared in accordance with GAAP (except that the unaudited interim financial
          statements were subject to normal and recurring year-end adjustments) in
          effect
          on the date such statements were prepared and fairly present the consolidated
          financial condition and operations of the Credit Parties at such date and
          the
          consolidated results of their operations for the period then ended.

         

        5.5  Material
          Adverse Effect.
          Since
          March 31, 2007, there has been no change in the business, Property, prospects,
          condition (financial or otherwise) or results of operations of the Credit
          Parties which could reasonably be expected to have a Material Adverse Effect.
          There is no fact known to the Borrowers which has a Material Adverse Effect
          or
          in the future is reasonably likely to have (so far as the Credit Parties
          can now
          foresee) a Material Adverse Effect and which has not been set forth in
          this
          Agreement or the other documents, certificates and statements furnished
          to the
          Administrative Agent by or on behalf of the Credit Parties prior to, or
          on, the
          Closing Date in connection with the transactions contemplated by this
          Agreement.

         

        5.6  Taxes.
          The
          Credit Parties have filed all United States federal tax returns and all
          other
          material tax returns which are required to be filed and have paid all taxes
          due
          pursuant to said returns or pursuant to any assessment received by the
          Credit
          Parties or any of their Subsidiaries, except such taxes, if any, that are
          being
          contested in good faith and as to which adequate reserves have been provided
          in
          accordance with GAAP and which no Lien has been filed or perfected. No
          tax liens
          have been filed and no claims are being asserted with respect to any such
          taxes.
          The charges, accruals and reserves on the books of the Credit Parties and their
          Subsidiaries in respect of any taxes or other governmental charges are
          adequate.

         

        5.7  Litigation
          and Contingent Obligations.
          There
          is no litigation, arbitration, governmental investigation, proceeding or
          inquiry
          pending or, to the knowledge of any of their officers, threatened against
          or
          affecting the Credit Parties which could reasonably be expected to have
          a
          Material Adverse Effect or which seeks to prevent, enjoin or delay the
          making of
          any Credit Extensions. Other than any liability incident to any litigation,
          arbitration or proceeding which could not reasonably be expected to have
          a
          Material Adverse Effect, the Credit Parties have no material Contingent
          Obligations not provided for or disclosed in the financial statements referred
          to in Section 5.4 except as set forth on Schedule 7 of this
          Agreement.

         

        5.8  Subsidiaries.
          The
          Disclosure Schedule contains an accurate list of all Subsidiaries of Unit
          as of
          the date of this Agreement, setting forth their respective jurisdictions
          of
          organization and the percentage of their respective capital stock or other
          ownership interests owned by the Unit or the other Credit Parties. All
          of the
          issued and outstanding shares of capital stock or other ownership interests
          of
          the Subsidiaries have been (to the extent such concepts are relevant with
          respect to such ownership interests) duly authorized and issued and are
          fully
          paid and non-assessable.

         

        
          
            38

          

          
            
            

            
            

          

          
            
            

          

        

        5.9  ERISA.
          Neither
          the Credit Parties nor any other member of the Controlled Group has incurred,
          or
          is reasonably expected to incur, any withdrawal liability to Multiemployer
          Plans. Each Plan complies in all material respects with all applicable
          requirements of law and regulations, no Reportable Event has occurred with
          respect to any Plan, neither the Credit Parties nor any other member of
          the
          Controlled Group has withdrawn from any Plan or initiated steps to do so,
          and no
          steps have been taken to reorganize or terminate any Plan except as disclosed
          in
          the Disclosure Schedule.

         

        5.10  Accuracy
          of Information.
          No
          information, exhibit or report furnished by the Credit Parties to the
          Administrative Agent or to any Lender in connection with the negotiation
          of, or
          compliance with, the Loan Documents contained any material misstatement
          of fact
          or omitted to state a material fact or any fact necessary to make the statements
          contained therein not misleading.

         

        5.11  Margin
          Stock.
          No part
          of the Loan proceeds of any Advances hereunder will be used to purchase
          or carry
          any margin stock or to extend credit to others for the purpose of purchasing
          or
          carrying any margin stock.
          If
          requested by the Administrative Agent or the Required Lenders, the Borrowers
          will, and will cause the other Credit Parties to, furnish to the Administrative
          Agent a statement in conformity with the requirements of Federal Reserve
          Form
          U-1, referred to in Regulation U, to the foregoing effect. No indebtedness
          being
          reduced or retired out of the proceeds of the Advances was or will be incurred
          for the purpose of purchasing or carrying any margin stock within the meaning
          of
          Regulation U or any "margin security" within the meaning of Regulation
          T.
          "Margin Stock" within the meaning of Regulation U does not constitute more
          than
          25% of the value of the consolidated assets of Unit and its
          Subsidiaries.

         

        5.12  Material
          Agreements.
          Unit
          has no actual knowledge of (i) any material agreement or material instrument
          to
          which any Borrower is a party or (ii) any charter or other corporate
          restriction, either of which (i) or (ii), under current conditions and
          circumstances known to Unit, constitutes or is reasonably expected to have
          a
          Material Adverse Effect. None of the Credit Parties is in default in the
          performance, observance or fulfillment of any of the obligations, covenants
          or
          conditions contained in (i) any agreement to which it is a party, which
          default
          could reasonably be expected to have a Material Adverse Effect or (ii)
          any
          agreement or instrument evidencing or governing Indebtedness, which default
          could reasonably be expected to have a Material Adverse Effect.

         

        5.13  Compliance
          With Laws.
          The
          Credit Parties have complied with all applicable statutes, rules, regulations,
          orders and restrictions of any domestic or foreign government or any
          instrumentality or agency thereof having jurisdiction over the conduct
          of their
          respective businesses or the ownership of their respective Property except
          for
          any failure to comply with any of the foregoing which could not reasonably
          be
          expected to have a Material Adverse Effect.

         

        5.14  Ownership
          of Properties.
          Unit
          and each of its Subsidiaries has marketable title to all of the properties
          and
          assets reflected as owned in the consolidated financial statements of Unit,
          in
          each case free and clear of all Liens other than Permitted Encumbrances
          (including those created under the Loan Documents described and defined
          in the
          Existing Credit Agreement) and such as do not materially and adversely
          affect
          the value of the property and do not materially interfere with the use
          made or
          proposed to be made of such property by Unit or its Subsidiaries, which
          such
          total Liens do not exceed $1,000,000 in the aggregate. The real property,
          improvements, equipment and personal property held under lease by Unit
          or any
          Subsidiary of Unit are held under valid enforceable leases, with such

         

        
          
            39

          

          
            
            

            
            

          

          
            
            
exceptions
            as are not material and do not materially interfere with the use made
            or
            proposed to be made of such real property, improvements, equipment or
            personal
            property by Unit or any Subsidiary of Unit. Each of Credit Parties possesses
            all
            licenses, permits, franchises, patents, copyrights, trademarks and trade
            names,
            and other intellectual property (or otherwise possesses the right to
            use such
            intellectual property without violation of the rights of any other Person)
            which
            are necessary to carry out its business as presently conducted and as
            proposed
            to be conducted hereafter. 

        

         

        5.15  Plan
          Assets; Prohibited Transactions.
          Neither
          the execution of this Agreement nor the making of Loans hereunder gives
          rise to
          a prohibited transaction within the meaning of Section 406 of ERISA or
          Section
          4975 of the Code. Since the effective date of Title IV of ERISA, no Reportable
          Event has occurred with respect to any Plan. The Credit Parties have fulfilled
          all their obligations under the funding standards of ERISA and the Code
          and are
          in compliance in all material respects with the applicable ERISA and Code
          provisions with respect to each Plan. Since the effective date of Title
          IV of
          ERISA there have not been any nor are there now existing any events or
          conditions that would permit any Plan to be terminated under circumstances
          which
          would cause the lien provided under Section 4068 of ERISA to attach to
          the
          assets of the Credit Parties or any of the Subsidiary Guarantors. No Borrower
          has (i) sought any waiver of the minimum funding standard under Section
          412 of
          the Code, (ii) failed to make any contribution or payment to any Plan,
          or made
          any amendment to any Plan, which has resulted or could result in the imposition
          of a Lien or the posting of a bond or other security under ERISA or the
          Code, or
          (iii) incurred any liability under Title IV of ERISA.

         

        5.16  Environmental
          Matters.
          Except
          as set forth on Schedule 4:

         

        (a)  To
          the
          best of the Borrowers' knowledge and belief, the Properties owned, leased
          or
          operated by the Credit Parties do not contain, and have not previously
          contained, any materials of environmental concern in amounts or concentrations
          which (i) constitute or constituted a violation of, or (ii) could give
          rise to
          liability under, any Environmental Law except in either case insofar as
          such
          violation or liability, or any aggregation thereof, is not reasonably likely
          to
          result in a Material Adverse Effect.

         

        (b)  To
          the
          best of the Borrowers' knowledge and belief, the Properties and all operations
          at the Properties are in compliance in all material respects, and have,
          for the
          lesser of the last five years or for the duration of their ownership, lease,
          or
          operation by the Credit Parties, been in compliance in all material respects
          with all applicable Environmental Laws, and there is no contamination at,
          under
          or about the Properties or violation of any Environmental Law with respect
          to
          the Properties or the business operated by the Credit Parties or any of
          their
          Subsidiaries (collectively, the "Business") which could interfere with
          the
          continued operation of the Properties or impair the fair saleable value
          thereof.

         

        (c)  None
          of
          the Credit Parties has received any notice of violation, alleged violation,
          non-compliance, liability or potential liability regarding environmental
          matters
          or 

         

        
          
            40

          

          
            
            

            
            

          

          
            
            
compliance
            with Environmental Laws with regard to any of the Properties or the Business,
            nor do any of the Borrowers have knowledge or reason to believe that
            any such
            notice will be received or is being threatened except insofar as such
            notice or
            threatened notice, or any aggregation thereof, does not involve a matter
            or
            matters that is or are reasonably likely to result in a Material Adverse
            Effect.

        

         

        (d)  To
          the
          best of the Borrowers' knowledge and belief, materials of environmental
          concern
          have not been transported or disposed of from the Properties in violation
          of, or
          in a manner or to a location which could give rise to liability under,
          any
          Environmental Law, nor have any materials of environmental concern been
          generated, treated, stored or disposed of at, on or under any of the Properties
          in violation of, or in a manner that could give rise to liability under,
          any
          applicable Environmental Law except insofar as any such violation or liability
          referred to in this paragraph, or any aggregation thereof, is not reasonably
          likely to result in a Material Adverse Effect.

         

        (e)  No
          judicial proceeding or governmental or administrative action is pending
          or, to
          the knowledge of the Borrowers, threatened, under any Environmental Law
          to which
          the Credit Parties thereof are or will be named as a party with respect
          to the
          Properties or the Business, nor are there any consent decrees or other
          decrees,
          consent orders, administrative orders or other orders, or other administrative
          or judicial requirements outstanding under any Environmental Law with respect
          to
          the Properties or the Business except insofar as such proceeding, action,
          decree, order or other requirement, or any aggregation thereof, is not
          reasonably likely to result in a Material Adverse Effect.

         

        (f)  There
          has
          been no release or threat of release of materials of environmental concern
          at or
          from the Properties, or arising from or related to the operations of the
          Borrower in connection with the Properties or otherwise in connection with
          the
          Business, in violation of or in amounts or in a manner that could give
          rise to
          liability under Environmental Laws except insofar as any such violation
          or
          liability referred to in this paragraph, or any aggregation thereof, is
          not
          reasonably likely to result in a Material Adverse Effect.

         

        5.17  Names
          and Places of Business.
          No
          Borrower has, during the preceding five years, had, been known by, or used
          any
          other trade or fictitious name. The chief executive office and principal
          place
          of business of each Credit Party are located at the address of the Credit
          Parties prescribed in Section 15.1. 

         

        5.18  Possession
          of Franchises, Licenses.
          The
          Credit Parties have in their possession, or have timely applied for, all
          franchises, certificates, licenses, permits and other authorizations from
          governmental political subdivisions or regulatory authorities, free from
          burdensome restrictions, that are necessary in any material respect for
          the
          ownership, maintenance and operation of their properties and assets, and
          none of
          the Credit Parties is in violation of any thereof in any material
          respect.

         

        
          
            41

          

          
            
            

            
            

          

          
            
            

          

        

        5.19  Rate
          Management Transactions.
          As of
          the Closing Date, Schedule 5 sets forth a true and complete list of all
          Rate
          Management Transactions (including commodity price swap agreements, forward
          agreements or contracts of sale which provide for prepayment for deferred
          shipment or delivery of oil, gas or other commodities) of the Credit Parties,
          listing the counterparties thereto.

         

        5.20  Insurance.
          The
          insurance certificate provided pursuant to Section 4.1(viii) will contain
          an
          accurate and complete description of all material policies of fire, liability,
          workmen's compensation and other forms of insurance owned or held by the
          Credit
          Parties. All such policies are in full force and effect, all premiums with
          respect thereto covering all periods up to and including the date of the
          closing
          have been paid, and no notice of cancellation or termination has been received
          with respect to any such policy. Such policies are sufficient for compliance
          with all requirements of law and of all agreements to which any Credit
          Party is
          a party; are valid, outstanding and enforceable policies; provide adequate
          insurance coverage in at least such amounts and against at least such risks
          (but
          including in any event public liability) as are usually insured against
          in the
          same general area by companies engaged in the same or a similar business
          for the
          assets and operations of the Credit Parties will remain in full force and
          effect
          through the respective dates set forth in such insurance certificate without
          the
          payment of additional premiums; and will not in any way be affected by,
          or
          terminate or lapse by reason of, the transactions contemplated by this
          Agreement. None of the Credit Parties have been refused any insurance with
          respect to its assets or operations, nor has its coverage been limited
          below
          usual and customary policy limits, by an insurance carrier to which it
          has
          applied for any such insurance or with which it has carried insurance during
          the
          last three years.

         

        5.21  No
          Default.
          No
          Credit Party is in default nor has any event or circumstance occurred which,
          but
          for the expiration of any applicable grace period or the giving of notice,
          or
          both, would constitute a default under any Material Indebtedness Agreement
          or
          instrument to which such Credit Party is a party or by which such Credit
          Party
          is bound which could have a Material Adverse Effect. No Default hereunder
          has
          occurred and is continuing.

         

        ARTICLE
          VI

        AFFIRMATIVE
          COVENANTS

         

        During
          the term of this Agreement, unless the Required Lenders will otherwise
          consent
          in writing:

         

        6.1  Reports.
          Unit
          will maintain and furnish to the Lenders:

         

        (i)
           Within
          80
          days after the close of each of its fiscal years, the financial statements
          of
          Unit and its Subsidiaries, together with an unqualified audit report certified
          by Unit's independent certified public accountants, prepared in accordance
          with
          GAAP on a consolidated basis, including a balance sheet as of the end of
          such
          period and statements of operations, stockholders equity and cash flows
          for such
          period.

         

        (ii) Within
          45
          days after the close of the first three quarterly periods of each of its
          fiscal
          years, consolidated unaudited balance sheets as at the close of each such
          period
          and statements of 

         

        
          
            42

          

          
            
            

            
            

          

          
            
            
operations,
            stockholders equity and cash flows for the period from the beginning
            of such
            fiscal year to the end of such quarter, all certified by its chief financial
            officer.

        

         

        (iii)
           Together
          with the financial statements required under Sections 6.1(i) and (ii),
          copies of
          all certifications made by officers of Unit to the SEC in connection with
          such
          financial statements and a compliance certificate in substantially the
          form of
          Exhibit B signed by Unit's chief financial officer showing the calculations
          necessary to determine compliance with this Agreement and stating that
          no
          Default exists, or if any Default exists, stating the nature and status
          of such
          Default.

         

        (iv)
           As
          soon
          as practicable and in any event within 10 days after the Credit Parties
          know
          that any Reportable Event has occurred with respect to any Plan, a statement,
          signed by the chief financial officer of Unit, describing said Reportable
          Event
          and the action which the Credit Parties propose to take regarding the Reportable
          Event.

         

        (v)
           As
          soon
          as practicable and in any event within 10 days after receipt by the Credit
          Parties, a copy of (a) any notice or claim to the effect that the Credit
          Parties
          is or may be liable to any Person as a result of the release by the Credit
          Parties, or any other Person of any toxic or hazardous waste or substance
          into
          the environment, and (b) any notice alleging any violation of any federal,
          state
          or local environmental, health or safety law or regulation by the Credit
          Parties, which, in either case, could reasonably be expected to have a
          Material
          Adverse Effect.

         

        (vi)
           Promptly
          on the furnishing to the stockholders of the Unit, copies of all financial
          statements, reports and proxy statements so furnished.

         

        (vii)
           By
          March
          1 of each year (commencing as of March 1, 2008), an Engineering Report
          prepared
          as of the prior December 31, by petroleum engineers who are employees of
          Credit
          Parties and audited by Ryder Scott Company, or such other firm of independent
          petroleum engineers chosen by Unit and acceptable to the Administrative
          Agent,
          concerning all Oil and Gas Properties and interests owned by any Credit
          Parties
          and their Subsidiaries which are located in or offshore of the United States
          and
          which have attributable to them proved oil or gas reserves. This reserve
          audit
          described above will encompass a review of the reserves associated with
          Oil and
          Gas Properties comprising at least 80% of the value stated in the report.
          The
          Engineering Report will be satisfactory to Administrative Agent, will contain
          sufficient information to enable Credit Parties to meet the reporting
          requirements concerning oil and gas reserves contained in Regulations S-K
          and
          S-X promulgated by the SEC, will take into account any "over/under produced"
          status under gas balancing arrangements, and will contain information and
          analysis comparable in scope to that contained in the Initial Engineering
          Report. 

         

        
          
            43

          

          
            
            

            
            

          

          
            
            

          

        

        (viii)
           By
          September 1 of each year (commencing as of September 1, 2007), and promptly
          following notice of a Special Redetermination under Section 2.6.4, an
          Engineering Report prepared as of the preceding June 30 (or the last day
          of the
          prior calendar month in the case of an additional redetermination) by petroleum
          engineers who are employees of Borrowers, together with an accompanying
          report
          on property sales, property purchases and changes in categories, both in
          the
          same form and scope as the reports in (x) above.

         

        (ix)
           By
          March
          1 and September 1 of each year, beginning September 1, 2007, a report describing
          the gross volume of production and sales attributable to production during
          the
          prior six-month period from the properties described in the Engineering
          Report
          in Section 6.1(vii) or Section 6.1(viii) and describing the related severance
          taxes, other taxes, and leasehold operating expenses attributable thereto
          and
          incurred during such month. By each March 1 and September 1 of each year,
          beginning September 1, 2007, the following internally prepared and generated
          information and data concerning Superior and the Superior Cash Flow: (i)
          most
          recent three (3) year historical volumes and cash flows, (ii) summary of
          material contracts, and (iii) budget for the then current fiscal year,
          each in
          form, scope and substance reasonably acceptable to the Agent.

         

        (x)
           Such
          other information (including non- financial information) as the Administrative
          Agent or any Lender may from time to time reasonably request.

         

        6.2  Use
          of
          Proceeds.
          The
          Borrowers will use such proceeds of the Credit Extensions as necessary
          to (i)
          refinance any Existing Indebtedness and the commitments issued in the Existing
          Credit Agreement, and provide financing for general working capital requirements
          for (a) exploration, development, production and acquisition of Oil and
          Gas
          Properties and other mineral interests, contract drilling services, gas
          gathering, gas processing and other midstream assets, (b) the issuance
          of
          standby LCs and (c) for general corporate purposes of the Borrowers. The
          Borrowers will not, nor will they permit any Subsidiary to, use any of
          the
          proceeds of the Advances to purchase or carry any "margin stock" (as defined
          in
          Regulations T and U).

         

        6.3  Notice
          of Default.
          Unit
          will give prompt notice in writing to the Lenders of the occurrence of
          any
          Default and of any other development, financial or otherwise, which could
          reasonably be expected to have a Material Adverse Effect.

         

        6.4  Conduct
          of Business.
          The
          Borrowers will, and will cause the other Credit Parties to, carry on and
          conduct
          their respective business in substantially the same manner and in substantially
          the same fields of enterprise as it is presently conducted and do all things
          necessary to remain duly incorporated or organized, validly existing and
          (to the
          extent such concept applies to such entity) in good standing as a domestic
          corporation, partnership or limited liability company in its jurisdiction
          of
          incorporation or organization, as the case may be, and maintain all requisite
          authority to conduct its business in each jurisdiction in which its business
          is
          conducted.

         

        6.5  Taxes.
          The
          Borrowers will, and will cause the other Credit Parties to, timely file
          complete
          and correct United States federal and applicable foreign, state and local
          tax
          returns required by law and pay when due all taxes, 

         

        
          
            44

          

          
            
            

            
            

          

          
            
            
assessments
            and governmental charges and levies upon it or its income, profits or
            Property,
            except those which are being contested in good faith by appropriate proceedings
            and with respect to which adequate reserves have been provided in accordance
            with GAAP.

        

         

        6.6  Insurance.
          The
          Borrowers will, and will cause the other Credit Parties to, maintain with,
          to
          the best of Unit's knowledge and belief, financially sound and reputable
          insurance companies insurance on all their Property in such amounts and
          covering
          such risks as is consistent with their prior business practice and deemed
          prudent by industry standards, and the Borrowers will furnish to any Lender
          upon
          request full information as to the insurance carried.

         

        6.7  Compliance
          With Laws.
          The
          Borrowers will, and will cause the other Credit Parties to, comply, in
          all
          material respects, with all laws, rules, regulations, orders, writs, judgments,
          injunctions, decrees or awards to which it may be subject including, without
          limitation, all Environmental Laws.

         

        6.8  Maintenance
          of Properties.
          The
          Borrowers will, and will cause the other Credit Parties to, do all things
          reasonably necessary to maintain, preserve, protect and keep their respective
          Property in good repair, working order and condition, and make all necessary
          and
          proper repairs, renewals and replacements so that its business carried
          on in
          connection therewith may be conducted at all times consistent with such
          Borrower's prior business practices.

         

        6.9  Inspection.
          The
          Borrowers will, and will cause the other Credit Parties to, permit the
          Administrative Agent and the Lenders, by their respective representatives
          and
          Administrative Agents, to inspect any of the Property, books and financial
          records of the Borrowers and each Subsidiary of any thereof, exclusive
          of
          records subject in good faith to attorney work product or privileged
          communications rules and standards, to examine and make copies of the books
          of
          accounts and other financial records of the Borrowers and each Subsidiary
          of any
          thereof, and to discuss the affairs, finances and accounts of the Borrowers
          and
          each Subsidiary with, and to be advised as to the same by, their respective
          officers at such reasonable times and intervals as the Administrative Agent
          or
          any Lender may designate.

         

        6.10  Deposit
          Accounts/Setoff.
          To
          secure the repayment of the Obligations, including Rate Management Obligations,
          each Borrower grants, and will cause the other Credit Parties to grant,
          to the
          Administrative Agent and each Lender and any applicable Affiliate of such
          Lenders (each a "Lender Affiliate"), a security interest, a lien, and a
          right of
          setoff and offset, each of which will be in addition to all other interests,
          liens, and rights of any Lender or Lender Affiliate at common Law, under
          the
          Loan Documents, or otherwise, and each of which will be upon and against
          (a) any
          and all moneys, securities and other property (and the proceeds therefrom)
          of
          such Credit Party now or hereafter held or received by or in transit to
          any
          Lender or Lender Affiliate from or for the account of such Credit Party,
          whether
          for safekeeping, custody, pledge, transmission, collection or otherwise,
          (b) any
          and all deposits and deposit accounts (general or special, time or demand,
          provisional or final) of such Credit Party with any Lender or Lender Affiliate,
          and (c) any other credits and claims of such Credit Party at any time existing
          against any Lender or Lender Affiliate, including claims under certificates
          of
          deposit (excluding from the foregoing security interest grant and right
          of set
          off and offset the accounts of the accounts at BOK as specified on Schedule
          6
          hereto (collectively, the "Excluded Accounts"). At any 

         

        
          
            45

          

          
            
            

            
            

          

          
            
            
time
            and
            from time to time during the continuance of any Event of Default, each
            Lender or
            Lender Affiliate is hereby authorized to foreclose upon, or to offset
            against
            the Obligations then due and payable (in either case without notice to
            any
            Credit Party), any and all items hereinabove referred to. The remedies
            of
            foreclosure and offset are separate and cumulative, and either may be
            exercised
            independently of the other without regard to procedures or restrictions
            applicable to the other.  

        

         

        6.11  Ratable
          Payments.
          If any
          Lender, whether by setoff or otherwise, has payment made to it upon its
          Outstanding Credit Exposure (other than payments received pursuant to Article
          III) in a greater proportion than that received by any other Lender, such
          Lender
          agrees, promptly upon demand, to purchase a portion of the Aggregate Outstanding
          Credit Exposure held by the other Lenders so that after such purchase each
          Lender will hold its Pro Rata Share of the Aggregate Outstanding Credit
          Exposure. If any Lender, whether in connection with setoff or amounts which
          might be subject to setoff or otherwise, receives collateral or other protection
          for its Obligations or such amounts which may be subject to setoff, such
          Lender
          agrees, promptly upon demand, to take such action necessary such that all
          Lenders share in the benefits of such collateral ratably in proportion
          to their
          respective Pro Rata Shares of the Aggregate Outstanding Credit Exposure.
          In case
          any such payment is disturbed by legal process, or otherwise, appropriate
          further adjustments will be made.

         

        6.12  Environmental
          Indemnities.
          Each of
          the Borrowers hereby agrees to indemnify, defend and hold harmless the
          Lenders
          and their respective officers, directors, employees, agents, consultants,
          attorneys, contractors and their respective affiliates, successors or assigns,
          or transferees from and against, and reimburse said Persons in full with
          respect
          to, any and all loss, liability, damage, fines, penalties, costs and expenses,
          of every kind and character, including reasonable attorneys' fees and court
          costs, known or unknown, fixed or contingent, occasioned by or associated
          with
          any claims, demands, causes of action, suits and/or enforcement actions,
          including any administrative or judicial proceedings, and any remedial,
          removal
          or response actions ever asserted, threatened, instituted or requested
          by any
          Persons, including any Tribunal, arising out of or related to: (a) the
          breach of
          any representation or warranty of the Borrowers contained in Section 5.16;
          (b)
          the failure of the Borrowers to perform any of their respective covenants
          contained in Section 6.7; (c) the ownership, construction, occupancy, operation,
          use of the Credit Parties' properties prior to the date on which the
          Indebtedness and obligations secured hereby have been paid and performed
          in
          full; provided, however, this indemnity shall not apply with respect to
          matters
          caused by or arising solely from the Agent's or the Lenders' activities
          during
          any period of time the Agent or the Lenders acquire ownership of the Credit
          Parties' properties.

         

        The
          indemnities contained in this Section 6.12 apply, without limitation, to
          any
          violation on or before the Release Date of any Environmental Laws and any
          liability or obligation relating to the environmental conditions on, under
          or
          about the Credit Parties' properties on or prior to the Release Date (including,
          without limitation: (a) the presence on, upon or in the Credit Parties'
          properties or release, discharge or threatened release on, upon or from
          the
          Credit Parties' properties of any polluting substances generated, used,
          stored,
          treated, disposed of or otherwise released prior to the Release Date, and
          (b)
          any and all damage to real or personal property or natural resources and/or
          harm
          or injury including wrongful death, to persons alleged to have resulted
          from
          such release of any polluting substances regardless of whether the act,
          omission, event or circumstances constituted a violation of any Environmental
          Law at the 

         

        
          
            46

          

          
            
            

            
            

          

          
            
            
time
            of
            its existence or occurrence). The term "release" shall have the meaning
            specified in applicable Environmental Laws and the terms "stored," "treated"
            and
            "disposed" shall have the meanings specified in applicable Environmental
            Laws;
            provided, however, any broader meanings of such terms provided by applicable
            laws of the State of Oklahoma shall apply.

        

         

        The
          provisions of this Section 6.12 shall be in addition to any other obligations
          and liabilities Credit Parties may have to the Agent or the Lenders at
          common
          law and shall survive the Release Date and shall continue thereafter in
          full
          force and effect.

         

        The
          Agent
          and the Lenders agree that in the event that such claim, suit or enforcement
          action is asserted or threatened in writing or instituted against them
          or any of
          their officers, employers, agents or contractors or any such remedial,
          removal
          or response action is requested of them or any of their officers, employees,
          agents or contractors for which the Agent or the Lenders may desire indemnity
          or
          defense hereunder, the Agent or the Lenders shall give prompt written
          notification thereof to Unit.

         

        Notwithstanding
          anything to the contrary stated herein, the indemnities created by this
          Section
          6.12 shall only apply to losses, liabilities, damages, fines, penalties,
          costs
          and expenses actually incurred by the Agent or the Lenders as a result
          of
          claims, demands, actions, suits or proceedings brought by Persons who are
          not
          the beneficiaries of any such indemnity. The Agent or the Lenders shall
          act as
          the exclusive agent for all indemnified Persons under this Section 6.12.
          With
          respect to any claims or demands made by such indemnified Persons, the
          Agent
          shall notify Unit within ten (10) days after the Agent's receipt of a writing
          advising the Agent of such claim or demand. Such notice shall identify
          (i) when
          such claim or demand was first made, (ii) the identity of the Person making
          it,
          (iii) the indemnified Person and (iv) the substance of such claim or demand.
          Failure by the Agent to so notify Unit within said ten (10) day period
          shall
          reduce the amount of the Credit Parties' obligations and liabilities under
          this
          Section 6.12 by an amount equal to any damages or losses suffered by the
          Credit
          Parties resulting from any prejudice caused the Credit Parties by such
          delay in
          notification from the Agent. Upon receipt of such notice, the Credit Parties
          shall have the exclusive right and obligation to contest, defend, negotiate
          or
          settle any such claim or demand through counsel of their own selection
          (but
          reasonably satisfactory to the Agent and the Lenders) and solely at Credit
          Parties' own cost, risk and expense; provided, that the Agent and the Lenders,
          at their own cost and expense, shall have the right to participate in any
          such
          contest, defense, negotiations or settlement. The settlement of any claim
          or
          demand hereunder by the Credit Parties, unless such settlement fully releases
          the Lenders from any and all liability thereon, may be made only upon the
          prior
          approval of the Lenders of the terms of the settlement, which approval
          shall not
          be unreasonably withheld.

         

        ARTICLE
          VII

        NEGATIVE
          COVENANTS

         

        7.1  Dividends.
          The
          Borrowers will not, nor will they permit any Subsidiary to, declare or
          pay any
          dividends or make any distributions on its capital stock (other than dividends
          payable in their own capital stock) or redeem, repurchase or otherwise
          acquire
          or retire any of its capital stock at any time outstanding; however, provided
          that no Default or Event of Default has occurred and remains outstanding
          and
          uncured, (i) any Subsidiary may declare and pay 

         

        
          
            47

          

          
            
            

            
            

          

          
            
            
dividends
            or make distributions to Unit or to a Wholly-Owned Subsidiary of Unit,
            (ii)
            during any fiscal year Unit may pay cash dividends in amounts not exceeding
            twenty-five percent (25%) of its Consolidated Net Income (after taxes)
            for the
            preceding fiscal year and (iii) any purchases by Unit of its outstanding
            common
            stock pursuant to a stock repurchase program approved by the Unit Board
            of
            Directors and conducted in compliance with the applicable rules and regulations
            of the SEC.

        

         

        7.2  Indebtedness.
          The
          Borrowers will not, nor will they permit any Subsidiary to, create, incur
          or
          suffer to exist any Indebtedness, except:

         

        (i)
           The
          Loans
          and the Reimbursement Obligations.

         

        (ii)
           Indebtedness
          (including Contingent Obligations) existing on the date hereof and described
          in
          the Disclosure Schedule.

         

        (iii) Indebtedness
          arising under Rate Management Agreements permitted by Section 7.10.

         

        (iv)
           Contingent
          Obligations permitted by Section 7.9.

         

        (v)
           Non-recourse
          Indebtedness in a restricted or special purpose Subsidiary (for which consent
          of
          the Required Lenders must be obtained) and as to which none of the Credit
          Parties (i) provides any guaranty or credit support of any kind (including
          any
          undertaking, guarantee, indemnity, agreement or instrument that would constitute
          Indebtedness) or (ii) is directly or indirectly liable (as a guarantor
          or
          otherwise); provided, that after giving effect to such Indebtedness outstanding
          from time to time, the Credit Parties are not in violation of any of the
          financial covenants of Article VIII.

         

        (vi) Normal
          and ordinary course trade debt and customary obligations relating to the
          operation of oil and gas producing properties, drilling rigs and gathering
          and
          processing systems and midstream asset operations.

         

        (vii) Unsecured
          senior indebtedness not in excess of $10,000,000 in the aggregate.

         

        (viii) Lease
          obligations (including building and office leases and leases for equipment)
          not
          in excess of $20,000,000 in the aggregate.

         

        (ix) Subordinated
          debt (including subordinated debt convertible to equity) in the aggregate
          maximum amount of $250,000,000 in form, scope and content reasonably acceptable
          to the Administrative Agent and the Required Lenders.

         

        (x) usual
          and
          customary insurance premium financed in the normal course of
          business.

         

        
          
            48

          

          
            
            

            
            

          

          
            
            

          

        

        (xi) indebtedness
          regarding self insured liabilities, including retentions under insurance
          policies.

         

        (xii) 
          miscellaneous items of Indebtedness not described in subsections (i) through
          (viii) above which do not in the aggregate (taking into account all such
          Indebtedness of the Credit Parties) exceed $10,000,000 at any one time
          outstanding.

         

        7.3  Limitation
          on Fundamental Changes.
          Borrowers will not enter into (nor permit any other Credit Party to enter
          into)
          any merger, consolidation or amalgamation, or liquidate, wind up or dissolve
          itself (or suffer any liquidation or dissolution), or convey, sell, lease,
          assign, transfer or otherwise dispose of, all or substantially all of its
          property, business or assets, or make any material change in its present
          method
          of conducting business, except:

         

        (a)  any
          Subsidiary of a Credit Party may be merged or consolidated with or into
          such
          Credit Party (provided that such Credit Party will be the continuing or
          surviving business entity or other entity) or with or into any one or more
          wholly owned Subsidiaries of the Credit Party that is a Borrower or Subsidiary
          Guarantor (provided that the wholly owned Borrower or Subsidiary Guarantor
          will
          be the continuing or surviving business entity or other entity);
          and

         

        (b)  any
          Wholly Owned Subsidiary may sell, lease, transfer or otherwise dispose
          of any or
          all of its assets (upon voluntary liquidation or otherwise) to such Borrower
          or
          any other Wholly Owned Subsidiary of such Borrower that is a Borrower or
          Subsidiary Guarantor.

         

        (c)  so
          long
          as no Default will exist or be caused as a result, a Person may be merged
          or
          consolidated with or into a Borrower so long as the Borrower is the continuing
          or surviving corporation.

         

        7.4  Sale
          of Assets.
          The
          Borrowers will not (nor will they permit any other Credit Party to) lease,
          sell
          or otherwise dispose of its Property to any other Person, except:

         

        (i)
           Sales
          of
          inventory in the ordinary course of business or the sale of assets not
          included
          in the Borrowing Base of not more than $125,000,000 in the aggregate; provided,
          however, in no event shall any drilling rigs of any of the Borrowers be
          sold or
          otherwise disposed of after the occurrence of a Default or an Event of
          Default
          that remains uncured without the prior written consent of the Required
          Lenders,
          and the net proceeds thereof shall be applied as a mandatory principal
          prepayment of the Obligations.

         

        (ii)
           Disposition
          of equipment and other personal property that is replaced by equivalent
          property
          or consumed in the normal operation of the Property of the respective
          Borrowers.

         

        (iii)
           Dispositions
          of a portion of its Property in connection with operating agreements, farmouts,
          farmins, joint exploration and development agreements and other agreements
          customary in the oil and gas industry that are entered into for the purposes
          of
          developing its Property and under 

         

        
          
            49

          

          
            
            

            
            

          

          
            
            
which
            it
            receives relatively equivalent consideration; provided, however, disposition
            of
            any Borrowing Base Properties under this clause (iii) shall be subject
            to the
            ten percent (10%) limitation of clause (iv) below to the extent the
            consideration received in exchange therefor results in a net Borrowing
            Base
            decrease of more than such 10%. 

        

         

        (iv)
           Leases,
          sales or other dispositions of its Property that, together with all other
          Property of the Credit Parties and their Subsidiaries previously leased,
          sold or
          disposed of (other than (i), (ii) and (iii) above) as permitted by this
          Section
          7.4 during the period since the most recent Determination Date, do not
          constitute more than ten percent (10%) of the Engineered Value of the Borrowing
          Base Properties as determined by Administrative Agent in its sole discretion;
          further provided, however, to the extent such aggregate consideration for
          all
          asset sales or other dispositions of Properties exceeds five percent (5%)
          of the
          Borrowing Base during any period between semi-annual Determination Dates,
          the
          Required Lenders will have the option to reduce the Borrowing Base by the
          amount
          of such proceeds and, further, provided, that any resulting Deficiency
          (as
          defined in Section 2.6.6) must be cured by the Credit Parties in compliance
          with
          Section 2.8(b).

         

        (v)
           Hydrocarbon
          Interests to which no proved reserves of Hydrocarbons are properly
          attributed.

         

        7.5  Investments
          and Acquisitions.
          The
          Borrowers will not (nor will they permit any other Credit Party to) make
          or
          suffer to exist any Investments (including without limitation, loans and
          advances to, and other Investments in, Subsidiaries), or commitments therefor,
          or to create any Subsidiary or to become or remain a partner in any partnership
          or joint venture, or to make any Acquisition of any Person, except:

         

        (i)
           Cash
          Equivalent Investments.

         

        (ii)
           Investments
          between Credit Parties or in any Credit Party's Subsidiaries which are
          Subsidiary Guarantors or Subsidiaries of any Credit Party with respect
          to which
          100% of its Equity has been pledged to Administrative Agent.

         

        (iii)
           Investments
          in existence on the date hereof and described on the Disclosure
          Schedule.

         

        (iv)
           Investments
          in associations, joint ventures, and other relationships (a) that are
          established pursuant to standard form operating agreements or similar agreements
          or which are partnerships for purposes of federal income taxation only,
          (b) that
          are not corporations or partnerships (or subject to the Uniform Partnership
          Act
          or other applicable state partnership act) under applicable state law,
          (d) which
          are limited partnerships formed for investment by employees and Directors
          of
          Unit and its Subsidiaries in the oil and gas exploration and development
          operations of 

         

        
          
            50

          

          
            
            

            
            

          

          
            
            
Unit
            and
            its Subsidiaries; or (d) whose businesses are limited to the exploration,
            development and operation of oil, gas or mineral properties and interests
            owned
            directly by the parties in such associations, joint ventures or relationships
            in
            which the ownership interest of any Credit Party or its Subsidiary is
            in direct
            proportion to the amount of such Investment.

        

         

        (v)
           Acquisitions
          by any of the Credit Parties or by any of the Material Subsidiaries or
          investments by any thereof in Subsidiaries of the Credit Parties that are
          not
          Material Subsidiaries that do not exceed $60,000,000 per such
          Acquisition.

         

        (vi)
           Miscellaneous
          items of Investments and Acquisitions not described in clauses (i) through
          (v)
          above which (taking into account all such miscellaneous Investments and
          Acquisitions of the Credit Parties and their Subsidiaries) do not exceed
          an
          aggregate amount of $60,000,000 during any fiscal year of Unit.

         

        7.6  Liens.
          The
          Borrowers will not (nor will they permit any other Credit Party to) create,
          incur, or suffer to exist any Lien in, of or on the Property of the Credit
          Parties or any of their Subsidiaries, except:

         

        (i)
           Liens
          for
          taxes, assessments or governmental charges or levies on its Property if
          the same
          will not at the time be delinquent or thereafter can be paid without penalty,
          or
          are being contested in good faith and by appropriate proceedings and for
          which
          adequate reserves in accordance with GAAP will have been set aside on its
          books.

         

        (ii)
           Liens
          imposed by law, such as carriers', warehousemen's and mechanics' liens
          and other
          similar liens arising in the ordinary course of business which secure payment
          of
          obligations not more than 90 days past due or which are being contested
          in good
          faith by appropriate proceedings and for which adequate reserves, in accordance
          with GAAP, will have been set aside on its books.

         

        (iii)
           Liens
          arising out of pledges or deposits under worker's compensation laws,
          unemployment insurance, old age pensions, or other social security or retirement
          benefits, or similar legislation.

         

        (iv)
           Utility
          easements, building restrictions and such other encumbrances or charges
          against
          real property as are of a nature generally existing with respect to properties
          of a similar character and which do not in any material way affect the
          marketability of the same or interfere with the use thereof in the business
          of
          the Credit Parties or their Subsidiaries.

         

        (v)
           Liens
          existing on the date hereof and described on the Disclosure
          Schedule.

         

        (vi)
           Liens
          in
          favor of the Administrative Agent, for the benefit of the Lenders,.

         

        
          
            51

          

          
            
            

            
            

          

          
            
            

          

        

        (vii)
           Liens
          on
          Property to secure not more than $5,000,000 in the aggregate of the Indebtedness
          permitted by Section 7.2(v).

         

        (viii)
           With
          respect to Property subject to any Loan Document, Liens burdening such
          Property
          that are expressly allowed by such Loan Document.

         

        (ix)
           Liens
          arising under operating agreements, unitization, pooling agreements and
          other
          agreements customary in the oil and gas industry securing amounts owed
          to
          operators and joint owners of Oil and Gas Properties that will not at the
          time
          be delinquent, or thereafter can be paid without penalty, or are being
          contested
          in good faith and by appropriate proceedings and for which adequate reserves
          in
          accordance with GAAP will have been set aside on its books.

         

        (x)
           Contracts,
          agreements, instruments, obligations, defects and irregularities affecting
          the
          Property that individually or in the aggregate are not such as to interfere
          materially with the use, operation or value of the Property.

         

        (xi) Any
          lien
          existing on any asset prior to its acquisition by a Borrower or one of
          its
          Subsidiaries and not created in contemplation of the acquisition.

         

        (xii) Any
          extension, renewal or replacement (or successive extensions, renewals or
          replacements), as a whole or in part, of any Liens referred to in (i) -
          (xi)
          above for amounts not exceeding the principal amount of the indebtedness
          secured
          by the Lien so extended, renewed or replaced.

         

        7.7  Affiliates.
          The
          Borrowers will not (nor will they permit any other Credit Party to) enter
          into
          any transaction (including, without limitation, the purchase or sale of
          any
          Property or service) with, or make any payment or transfer to, any Affiliate
          except in the ordinary course of business and pursuant to the reasonable
          requirements of the Credit Parties' or such Subsidiary's business and on
          fair
          and reasonable terms no less favorable to the Credit Parties or such Subsidiary
          than the Credit Parties or such Subsidiary would obtain in a comparable
          arms-length transaction.

         

        7.8  Sale
          and Leaseback Transactions and other Off-Balance Sheet
          Liabilities.
          The
          Borrowers will not (nor will they permit any other Credit Party to) enter
          into
          or suffer to exist any (i) Sale and Leaseback Transaction or (ii) any other
          transaction pursuant to which it incurs or has incurred Off-Balance Sheet
          Liabilities, except for Rate Management Obligations permitted to be incurred
          under the terms of Section 7.10.

         

        7.9  Contingent
          Obligations.
          The
          Borrowers will not (nor will they permit any other Credit Party to) make
          or
          suffer to exist any Contingent Obligation (including, without limitation,
          any
          Contingent Obligation with respect to the obligations of a Subsidiary),
          except
          (i) by endorsement of instruments for deposit or collection in the ordinary
          course of business, (ii) the Reimbursement Obligations, (iii) the Subsidiary
          Guaranty, (iv) excluding existing Contingent Obligations set forth on Schedule
          7
          and the Disclosure Schedule, other Contingent Obligations not to exceed
          an
          outstanding aggregate amount of $25,000,000 at any time, and (v) liabilities
          associated or accrued for abandonment and 

         

        
          
            52

          

          
            
            

            
            

          

          
            
            
plugging
            of Credit Parties' Oil and Gas Properties, and (vi) as general partner
            of the
            limited partnerships formed annually to allow employees and directors
            of Unit to
            participate in certain of its oil and gas exploration and production
            operations.

        

         

        7.10  Financial
          Contracts.
          None of
          the Credit Parties will be a party to or in any manner be liable on any
          Financial Contract except:

         

        (a)  contracts
          entered into with the purpose and effect of fixing prices on oil or gas
          expected
          to be produced by the Credit Parties and their Subsidiaries, provided that
          at
          all times: (i) no such contract fixes a price for a term of more than 48
          months;
          (ii) the aggregate monthly production covered by all such contracts for
          any
          single month does not in the aggregate exceed eighty percent (80%) of the
          aggregate Engineered Projected Production (as defined below) of the Credit
          Parties and their Subsidiaries anticipated to be sold in the ordinary course
          of
          their businesses for such month, (iii) no such contract requires the Credit
          Parties or any of their Subsidiaries to put up money, assets, letters of
          credit
          or other security against the event of its nonperformance prior to actual
          default by such Credit Parties or any of their Subsidiaries in performing
          their
          obligations thereunder (unless such counterparty is a Lender or any Lender
          Affiliate), and (iv) each such contract is with a counterparty or has a
          guarantor of the obligation of the counterparty who (unless such counterparty
          is
          a Lender or any Lender Affiliate) at the time the contract is made has
          long-term
          obligations rated BBB+ or Baal or better, respectively, by either Moody's
          or
          S&P. As used in this subsection, the term "Engineered Projected Production"
          means the Engineered Value of projected production of oil or gas (measured
          by
          volume unit or BTU equivalent, not sales price) for the term of the contracts
          or
          a particular month, as applicable, from properties and interests owned
          by the
          Credit Parties and their Subsidiaries that are located in or offshore of
          the
          United States and are proved developed producing (PDP) reserves (as determined
          by the Administrative Agent in its oil and gas lending criteria), as such
          production is projected in the most recent report delivered pursuant to
          Section
          6.1(vii) or (viii), after deducting projected production from any properties
          or
          interests sold or under contract for sale that had been included in such
          report
          and after adding projected production from any properties or interests
          that had
          not been reflected in such report but that are reflected in a separate
          or
          supplemental reports meeting the requirements of such Section 6.1(vii)
          or (viii)
          above and otherwise are satisfactory to Administrative Agent; 

         

        (b)  contracts
          entered into by Credit Parties or their Subsidiaries with the purpose and
          effect
          of fixing interest rates on a principal amount of indebtedness of such
          Credit
          Parties or their Subsidiaries that is accruing interest at a variable rate,
          provided that no such contract will be entered into by Credit Parties or
          any of
          their Subsidiaries for speculative purposes; and

         

        (c)  such
          contracts comply with the Rate Management Transactions’ criteria disclosed in
          writing to the Administrative Agent.

         

        
          
            53

          

          
            
            

            
            

          

          
            
            

          

        

        7.11  Letters
          of Credit.
          The
          Borrowers will not (nor will they permit any other Credit Party to) apply
          for or
          become liable upon or in respect of any Letter of Credit other than
          LCs.

         

        7.12  Prohibited
          Contracts.
          Except
          as expressly permitted in this Agreement or the other Loan Documents, none
          of
          Borrowers will (nor will they permit any other Credit Party to), directly
          or
          indirectly, enter into, create, or otherwise allow to exist any contract
          or
          other consensual restriction on the ability of any Subsidiary of a Borrower
          to:
          (a) pay dividends or make other distributions to other Credit Parties,
          (b) to
          redeem equity interests held in it by other Credit Parties, or (c) to repay
          loans and other indebtedness owing by it to other Credit Parties. 

         

        7.13  Negative
          Pledge.
          Except
          only for Liens permitted by applicable subsections of Section 7.6, none
          of the
          Borrowers will (nor will they permit any other Credit Party to) cause or
          permit
          the pledging, encumbrance, mortgaging, granting of a consensual security
          interest or any other type of pledge, charge or imposition of a Lien against
          any
          of the Credit Parties’ or any Subsidiaries' (i) oil and gas mining and mineral
          interests, rights and properties, proved, developed, producing or otherwise
          (whether now owned or hereafter created or acquired) constituting 100%
          of the
          Engineered Value thereto, to secure any Indebtedness (including Contingent
          Obligations), or (ii) midstream assets, without the prior written consent
          of the
          Administrative Agent and the Lenders. This covenant, to the fullest extent
          permitted by applicable law, will be deemed and construed as a "negative
          pledge"
          of all such assets referenced in clauses (i) and (ii) above in favor of
          the
          Administrative Agent for the benefit of the Lenders. 

         

        ARTICLE
          VIII

        FINANCIAL
          COVENANTS

         

        8.1  Current
          Ratio.
          Unit
          will not permit the ratio, determined as of the end of each of Unit's fiscal
          quarters, of (i) Unit's consolidated Current Assets (including the then
          Available Aggregate Commitment) to (ii) Unit's consolidated Current Liabilities
          (including the current portion of the Loans), to be less than 1.0 to
          1.0.

         

        8.2  Leverage
          Ratio.
          Unit
          will not permit the ratio, determined as of the end of each of Unit's fiscal
          quarters, of (i) Long Term Debt to (ii) Consolidated EBITDA for the then
          most-recently ended rolling four (4) fiscal quarters to be greater than
          3.50 to
          1.0.

         

        8.3  Minimum
          Consolidated Net Worth.
          Unit
          will not permit Unit's Consolidated Net Worth to be less than Nine Hundred
          Million Dollars ($900,000,000) as tested quarterly effective as of the
          close of
          each fiscal quarter of Unit and annually effective as of the close of each
          fiscal year end, based on the quarterly and annual financial statement
          reporting
          requirements of Section 6.1(i) and (ii), respectively.

         

        ARTICLE
          IX

        GUARANTEES

         

        9.1  Guarantees.
          Unit
          will cause each current Material Subsidiary and each future Material Subsidiary
          to guarantee the prompt payment and performance when due of the Obligations
          in
          accordance with the terms and provisions of the Subsidiary Guaranty. As
          soon as
          practicable and in any event within ten (10) days after any Person becomes
          a
          direct or indirect Material Subsidiary, Unit will provide the Administrative
          Agent written notice thereof and 

         

        
          
            54

          

          
            
            

            
            

          

          
            
            
will
            cause such Person to execute a Subsidiary Guaranty Joinder Agreement
            in
            substantially the same form as Schedule 1 to the Subsidiary Guaranty.
            Prior to
            any Investments being permitted to be made in any other Subsidiary of
            the Credit
            Parties in excess of the amount permitted by Section 7.5(v) such Subsidiary
            will
            also execute and deliver such a Subsidiary Guaranty to the Administrative
            Agent
            for the ratable benefit of each Lender, together with such other certificates
            or
            documents as Administrative Agent reasonably deems necessary or appropriate
            to
            confirm such Subsidiary Guaranty, including without limitation, closing
            opinions
            (supplementing the closing opinion required by Section 4.1.1(v) of this
            Agreement) as required by the Administrative Agent or the Required Lenders
            in
            connection with the Subsidiary Guaranty instruments executed from time
            to time
            by Material Subsidiaries under this Section 9.1.

        

         

        9.2  Negative
          Pledge/Production Proceeds.
          Notwithstanding that, by the terms hereof, the Borrowers are granting to
          Administrative Agent and Lenders a "negative pledge" of the Oil and Gas
          Properties now or hereafter owned or acquired and all of the "production
          proceeds" accruing to the property covered thereby and all gathering and
          processing and related midstream assets, including Borrowers' commercially
          reasonable and best efforts to so restrict other Credit Parties, so long
          as no
          Default has occurred Borrowers and their Subsidiaries may continue to receive
          from the purchasers of production all such production proceeds from the
          Oil and
          Gas Properties. Upon the occurrence of a Default, Administrative Agent
          and
          Lenders may obtain possession of all production proceeds then held by Borrowers
          and their Subsidiaries or to receive directly from the purchasers of production
          all production proceeds. 

         

        ARTICLE
          X

        EVENTS
          OF DEFAULTS

         

        The
          occurrence of any one or more of the following events will constitute an
          Event
          of Default:

         

        10.1  Any
          representation or warranty made or deemed made by or on behalf of any of
          the
          Credit Parties to the Lenders or the Administrative Agent under or in connection
          with this Agreement, any Credit Extension, or any certificate, report or
          information delivered in connection with this Agreement or any other Loan
          Document is materially false on the date as of which made.

         

        10.2  Nonpayment
          of principal of any Loan when due, nonpayment of any Reimbursement Obligation
          within one Business Day after the same becomes due, or nonpayment of interest
          upon any Loan or of any commitment fee, LC Fee or other obligations under
          any of
          the Loan Documents within ten (10) days after the same becomes due.

         

        10.3  The
          breach by the Borrowers of any of the terms or provisions of Section 2.21,
          Section 6.3, Article VII, Article VIII or Article IX of this Agreement
          and
          failure to cure within twenty (20) days following written notice from the
          Administrative Agent or any Lender to Unit.

         

        10.4  The
          breach by the Borrowers (other than a breach which constitutes a Default
          under
          another Section of this Article X) of any of the terms or provisions of
          this
          Agreement which is not remedied within thirty (30) days after written notice
          from the Administrative Agent or any Lender to Unit.

         

        
          
            55

          

          
            
            

            
            

          

          
            
            

          

        

        10.5  Failure
          of any Credit Party to pay when due any Material Indebtedness; or the default
          by
          any Credit Party in the performance (beyond the applicable grace period
          with
          respect thereto, if any) of any term, provision or condition contained
          in any
          Material Indebtedness Agreement, or any other event occurs or condition
          exists,
          the effect of which default, event or condition is to cause, or to permit
          the
          holder(s) of such Material Indebtedness or the lender(s) under any Material
          Indebtedness Agreement to cause, such Material Indebtedness to become due
          prior
          to its stated maturity or any commitment to lend under any Material Indebtedness
          Agreement to be terminated prior to its stated expiration date; or any
          Material
          Indebtedness of any Credit Party or any of their Subsidiaries will be declared
          to be due and payable or required to be prepaid or repurchased (other than
          by a
          regularly scheduled payment) prior to the stated maturity thereof; or the
          Credit
          Parties will not pay, or admit in writing its inability to pay, its debts
          generally as they become due.

         

        10.6  No
          Credit
          Party will (i) have an order for relief entered with respect to it under
          the
          Federal bankruptcy laws as now or hereafter in effect, (ii) make an assignment
          for the benefit of creditors, (iii) apply for, seek, consent to, or acquiesce
          in, the appointment of a receiver, custodian, trustee, examiner, liquidator
          or
          similar official for it or any substantial portion of its Property, (iv)
          institute any proceeding seeking an order for relief under the Federal
          bankruptcy laws as now or hereafter in effect or seeking to adjudicate
          it a
          bankrupt or insolvent, or seeking dissolution, winding up, liquidation,
          reorganization, arrangement, adjustment or composition of it or its debts
          under
          any law relating to bankruptcy, insolvency or reorganization or relief
          of
          debtors or fail to file an answer or other pleading denying the material
          allegations of any such proceeding filed against it, (v) take any corporate
          or
          partnership action to authorize or effect any of the foregoing actions
          set forth
          in this Section 10.6 or (vi) fail to contest in good faith any appointment
          or
          proceeding described in Section 10.7.

         

        10.7  Without
          the application, approval or consent of the Credit Parties, a receiver,
          trustee,
          examiner, liquidator or similar official will be appointed for any Credit
          Party
          or a proceeding described in Section 10.6(iv) will be instituted against
          any
          Credit Party and such appointment continues undischarged or such proceeding
          continues undismissed or unstayed for a period of 60 consecutive
          days. 

         

        10.8  Any
          court, government or governmental agency condemns, seizes or otherwise
          appropriates, or takes custody or control of, all or any portion of the
          Property
          of any Credit Party which, when taken together with all other Property
          of such
          Credit Party so condemned, seized, appropriated, or taken custody or control
          of,
          during the twelve-month period ending with the month in which any such
          action
          occurs, constitutes a Material Adverse Effect.

         

        10.9  Any
          of
          the Credit Parties fails within 30 days to pay, bond or otherwise discharge
          one
          or more (i) judgments or orders for the payment of money in excess of $1,000,000
          (or the equivalent thereof in currencies other than U.S. Dollars) in the
          aggregate, or (ii) non-monetary judgments or orders which, individually
          or in
          the aggregate, could reasonably be expected to have a Material Adverse
          Effect,
          which judgment(s), in any such case, is/are not stayed on appeal or otherwise
          being appropriately contested in good faith.

         

        10.10  The
          Unfunded Liabilities of all Single Employer Plans exceeds in the aggregate
          $500,000 or any material Reportable Event occurs in connection with any
          Plan.

         

        
          
            56

          

          
            
            

            
            

          

          
            
            

          

        

        10.11  Nonpayment
          by any Credit Party of any Rate Management Obligation when due or the breach
          by
          any Credit Party or any Subsidiary of any term, provision or condition
          contained
          in any Rate Management Transaction or any transaction of the type described
          in
          the definition of "Rate Management Transactions," whether or not any Lender
          or
          Affiliate of a Lender is a party thereto, after taking into account any
          applicable grace period, but only if such nonpayment or breach constitutes
          a
          Material Adverse Effect.

         

        10.12  Any
          Change in Control of any of the Credit Parties occurs.

         

        10.13  Any
          Credit Party (i) is the subject of any proceeding or investigation pertaining
          to
          the release by any Credit Party, any of their Material Subsidiaries or
          any other
          Person of any toxic or hazardous waste or substance into the environment,
          or
          (ii) violates any Environmental Law, which, in the case of an event described
          in
          clause (i) or clause (ii), could reasonably be expected to have a Material
          Adverse Effect.

         

        10.14  Any
          Subsidiary Guaranty fails to remain in full force or effect or any action
          is
          taken to discontinue or to assert the invalidity or unenforceability of
          any
          Subsidiary Guaranty, or any Subsidiary Guarantor fails to comply with any
          of the
          terms or provisions of any Subsidiary Guaranty to which it is a party,
          or any
          Subsidiary Guarantor denies that it has any further liability under any
          Subsidiary Guaranty to which it is a party, or will give notice to such
          effect.

         

        10.15  Any
          Credit Party fails to comply in any material respect with any of the terms
          or
          provisions of any Loan Document.

         

        10.16  The
          representations and warranties set forth in Section 5.15 ("Plan Assets;
          Prohibited Transactions") at any time are not true and correct in any material
          respect.

         

        ARTICLE
          XI

        ACCELERATION,
          WAIVERS, AMENDMENTS AND REMEDIES

         

        11.1  Acceleration.

         

        (i) If
          any
          Default described in Section 10.6 or 10.7 occurs with respect to the Credit
          Parties, the obligations of the Lenders to make Loans hereunder and the
          obligation and power of the LC Issuer to issue LCs will automatically terminate
          and the Obligations will immediately become due and payable without any
          election
          or action on the part of the Administrative Agent, the LC Issuer or any
          Lender
          and the Credit Parties will be and become thereby unconditionally obligated,
          without any further notice, act or demand, to pay to the Administrative
          Agent an
          amount in immediately available funds equal to the amount of LC Obligations
          in
          cash or cash equivalents satisfactory to the Administrative Agent. If any
          other
          Event of Default occurs and is continuing, the Required Lenders (or the
          Administrative Agent with the consent of the Required Lenders) may (a)
          terminate
          or suspend the obligations of the Lenders to make Loans hereunder and the
          obligation and power of the LC Issuer to issue LCs, or declare the Obligations
          to be due and payable, or both, in which event the Obligations will become
          immediately due and payable, without presentment, demand, protest or notice
          of
          any kind, all of which the Credit Parties hereby expressly waive, and (b)
          upon
          notice to the Credit Parties and in addition to the continuing right to
          demand
          payment of all amounts payable under this Agreement, make 

         

        
          
            57

          

          
            
            

            
            

          

          
            
            
demand
            on
            the Credit Parties to pay, and the Credit Parties will, forthwith upon
            such
            demand and without any further notice or act, immediately pay to the
            Administrative Agent the amount of such LC Obligations.

        

         

        (ii) The
          Administrative Agent may at any time or from time to time, after such funds
          are
          deposited with the Administrative Agent, apply such funds to the payment
          of the
          Obligations and any other amounts as may have become due and payable by
          the
          Credit Parties to the Lenders or the LC Issuer under the Loan
          Documents.

         

        11.2  Amendments.
          Subject
          to the provisions of this Section 11.2, the Required Lenders (or the
          Administrative Agent with the consent in writing of the Required Lenders)
          and
          the Credit Parties may enter into supplemental agreements for the purpose
          of
          adding or modifying any provisions to the Loan Documents to which they
          are
          parties or changing in any manner the rights of the Lenders or the Borrowers
          under this Agreement or waiving any Default or Event of Default under this
          Agreement; provided, however, that no such supplemental agreement will,
          without
          the consent of all of the Lenders:

         

        (i)
           Extend
          the final maturity of any Loan, or extend the expiration date of an LC
          to a date
          after the Facility Termination Date or postpone any regularly scheduled
          payment
          of principal of any Loan or forgive all or any portion of the principal
          amount
          thereof or any Reimbursement Obligation related thereto, or reduce the
          rate or
          extend the time of payment of interest or fees thereon or Reimbursement
          Obligations related thereto.

         

        (ii)
           Reduce
          the percentage specified in the definition of Required Lenders or eliminate
          or
          delete the Borrowing Base concept of Section 2.6 of this Agreement.

         

        (iii)
           Extend
          the Facility Termination Date, or reduce the amount or extend the payment
          date
          for, the mandatory principal payments required under Section 2.8(b), or
          increase
          the (a) Maximum Credit Amount, (b) Aggregate Commitment Amount above the
          Maximum
          Credit Amount, (c) Borrowing Base contrary to the last sentence of Section
          2.6.2(b), (d) amount of the Commitment of any Lender under this Agreement
          or (e)
          commitment to issue LCs.

         

        (iv) Amend
          this Section 11.2 or permit the Borrowers to assign their rights under
          this
          Agreement.

         

        (v) No
          amendment of any provision of this Agreement relating to the Administrative
          Agent will be effective without the written consent of the Administrative
          Agent,
          and no amendment of any provision relating to the LC Issuer will be effective
          without the written consent of the LC Issuer.

         

        11.3  Preservation
          of Rights.
          No
          delay or omission of the Lenders, the LC Issuer or the Administrative Agent
          to
          exercise any right under the Loan Documents will impair such right or be
          construed to be a waiver of any Default or Event of Default or an acquiescence
          in such Default or Event of Default, and the making of a Credit Extension
          notwithstanding the existence of a Default or Event of Default or the inability
          of the Credit Parties to satisfy the conditions precedent to such Credit
          Extension will not constitute any waiver or acquiescence. Any single or
          partial
          exercise of any such right will not preclude other or further exercise
          of such
          right or the exercise of any other right, and 

         

        
          
            58

          

          
            
            

            
            

          

          
            
            
no
            waiver, amendment or other variation of the terms, conditions or provisions
            of
            the Loan Documents whatsoever will be valid unless in writing signed
            by the
            Lenders required pursuant to Section 11.2, and then only to the extent
            specifically set forth in writing. All remedies contained in the Loan
            Documents
            or by law or equity afforded will be cumulative and will be available
            to the
            Administrative Agent, the LC Issuer and the Lenders until the Obligations
            have
            been paid in full.

        

         

        ARTICLE
          XII

        GENERAL
          PROVISIONS

         

        12.1  Survival
          of Agreements.
          All
          covenants, agreements, representations and warranties contained in this
          Agreement will survive the making of the Credit Extensions during the term
          of
          this Agreement and any extensions, renewals, supplements or restatements
          of this
          Agreement.

         

        12.2  Governmental
          Regulation.
          Anything contained in this Agreement to the contrary notwithstanding, neither
          the LC Issuer nor any Lender will be obligated to extend credit to the
          Borrowers
          in violation of any limitation or prohibition provided by any applicable
          statute
          or regulation.

         

        12.3  Headings.
          Section
          headings in the Loan Documents are for convenience of reference only, and
          will
          not govern the interpretation of any of the provisions of the Loan
          Documents.

         

        12.4  Entire
          Agreement.
          The
          Loan Documents embody the entire agreement and understanding among the
          Borrowers, the Administrative Agent, the LC Issuer and the Lenders and
          supersede
          all prior agreements and understandings among the Borrowers, the Administrative
          Agent, the LC Issuer and the Lenders relating to the subject matter of
          the Loan
          Documents other than the Administrative Agent Fee Letter, all of which
          will
          survive and remain in full force and effect during the term of this
          Agreement.

         

        12.5  Several
          Obligations; Benefits of this Agreement.
          The
          respective obligations of the Lenders hereunder are several and not joint
          and no
          Lender will be the partner or Administrative Agent of any other (except
          to the
          extent to which the Administrative Agent is authorized to act in such capacity).
          The failure of a Lender to perform any of its obligations hereunder will
          not
          relieve any other Lender from any of its obligations hereunder. This Agreement
          will not be construed so as to confer any right or benefit on any Person
          other
          than the parties to this Agreement and their respective successors and
          assigns.

         

        12.6  Expenses;
          Indemnification.

         

        (i) The
          Borrowers will promptly reimburse the Administrative Agent and the Syndication
          Agent for any filing and recording fees, reasonable costs and out-of-pocket
          expenses (including reasonable attorneys' fees, time charges and expenses
          advanced of attorneys for the Administrative Agent or for any of the Lenders)
          paid or incurred by the Administrative Agent or the Syndication Agent in
          connection with the preparation, negotiation, execution, closing, delivery,
          syndication, review, amendment, waiver, consent or modification, refinancing,
          Lien perfection, administration, collection and enforcement of the Loan
          Documents, regardless of 

         

        
          
            59

          

          
            
            

            
            

          

          whether
            or not the transactions provided for in this Agreement are eventually
            closed and
            regardless of whether or not any or all sums evidenced by the Notes are
            advanced
            to the Borrowers by the Lenders. 

        

         

        (ii)
           The
          Borrowers hereby also agree to indemnify against and, where applicable,
          reimburse for, the Administrative Agent, the Syndication Agent, the LC
          Issuer
          and each Lender, its directors, officers and employees, all losses, claims,
          damages, penalties, judgments, liabilities and expenses (including, without
          limitation, the prompt reimbursement of all legal fees and expenses of
          attorneys
          for the Administrative Agent, the Syndication Agent, the LC Issuer or any
          of the
          Lenders in connection with (i) restructure as a part of loan work out or
          special
          asset modification or fees and expenses from enforcement or collection
          actions
          or proceedings, and (ii) collection and enforcement actions or proceedings,
          including litigation or preparation therefor whether or not the Administrative
          Agent, the Syndication Agent, the LC Issuer or any Lender is a party to
          such
          litigation) which any of them may pay or incur in good faith as a result
          of this
          Agreement, the other Loan Documents, the transactions contemplated by the
          Loan
          Documents except to the extent that they are determined in a final
          non-appealable judgment by a court of competent jurisdiction to have resulted
          from the gross negligence or willful misconduct of the party seeking
          indemnification. 

         

        The
          obligations of the Borrowers under this Section 12.6 will survive the
          termination of this Agreement.

         

        12.7  Severability
          of Provisions.
          Any
          provision in any Loan Document that is held to be inoperative, unenforceable,
          or
          invalid in any jurisdiction will, as to that jurisdiction, be inoperative,
          unenforceable, or invalid without affecting the remaining provisions in
          that
          jurisdiction or the operation, enforceability, or validity of that provision
          in
          any other jurisdiction. The provisions of all Loan Documents are
          severable.

         

        12.8  Nonliability
          of Lenders.
          The
          relationship between the Borrowers on the one hand and the Lenders, the
          LC
          Issuer and the Administrative Agent on the other hand will, to the extent
          that
          relationship is the subject of this Agreement, be solely that of borrowers
          and
          lenders. Neither the Administrative Agent, the Syndication Agent, the LC
          Issuer
          nor any Lender will have any fiduciary responsibilities to the Credit Parties.
          Neither the Administrative Agent, the Syndication Agent, the LC Issuer
          nor any
          Lender undertakes any responsibility to the Credit Parties to review or
          inform
          the Credit Parties of any matter in connection with any phase of the Credit
          Parties' business or operations. The Borrowers agree that neither the
          Administrative Agent, the Syndication Agent, the LC Issuer nor any Lender
          will
          have liability to the Credit Parties (whether sounding in tort, contract
          or
          otherwise) for losses suffered by the Credit Parties in connection with,
          arising
          out of, or in any way related to, the transactions contemplated and the
          relationship established by the Loan Documents, or any act, omission or
          event
          occurring in connection therewith, unless it is determined in a final
          non-appealable judgment by a court of competent jurisdiction that such
          losses
          resulted from the gross negligence or willful misconduct of the party from
          which
          recovery is sought. Neither the Administrative Agent, the Syndication Agent,
          the
          LC Issuer nor any Lender will have any liability with respect to, and the
          Borrowers hereby waive, release and 

         

        
          
            60

          

          
            
            

            
            

          

          
            
            
agree
            not
            to sue for, any special, indirect or consequential damages suffered by
            the
            Credit Parties in connection with, arising out of, or in any way related
            to the
            Loan Documents or the transactions contemplated thereby.

        

         

        12.9  Confidentiality.
          Each
          Lender agrees to hold as confidential any information which it may receive
          from
          the Borrowers pursuant to this Agreement in confidence, except for disclosure
          (i) to its Affiliates and to other Lenders and their respective Affiliates,
          (ii)
          to legal counsel, accountants, and other professional advisors to such
          Lender or
          to a Transferee, (iii) to regulatory officials, (iv) to any Person as requested
          pursuant to or as required by law, regulation, or legal process, (v) to
          any
          Person in connection with any legal proceeding to which such Lender is
          a party,
          (vi) to such Lender's direct or indirect contractual counterparties in
          swap
          agreements or to legal counsel, accountants and other professional advisors
          to
          such counterparties, (vii) permitted by Section 14.4, (viii) to rating
          agencies
          if requested or required by such agencies in connection with a rating relating
          to the Advances, and (ix) of information that the Credit Parties have made
          available to the general public.

         

        12.10  Disclosure.
          The
          Borrowers and each Lender hereby acknowledge and agree that BOk and/or
          its
          Affiliates from time to time may hold investments in, make other loans
          to or
          have other relationships with the Borrowers and/or their
          Subsidiaries.

         

        12.11  Place
          of Payment.
          All
          amounts to be paid by the Borrowers or the Subsidiary Guarantors under
          this
          Agreement will be paid in immediately available funds to the Administrative
          Agent at its principal banking offices at Bank of Oklahoma Tower, One Williams
          Center, Tulsa, Oklahoma 74192, Attention: Energy Department - 8th Floor,
          or at
          such other place as the Administrative Agent or the Required Lenders will
          notify
          Unit in writing. If any interest, principal or other payment falls due
          on a date
          other than a Business Day, then (unless otherwise provided in this Agreement)
          such due date will be extended to the next succeeding Business Day, and
          such
          extension of time will in such case be included in computing interest,
          if any,
          in connection with such payment.

         

        12.12  Interest.
          It is
          the intention of the parties to this Agreement that the Lenders conform
          strictly
          to usury laws applicable to it. Accordingly, if the transactions contemplated
          by
          this Agreement would be usurious as to a Lender under laws applicable to
          it
          (including the laws of the United States of America or any other jurisdiction
          whose laws may be mandatorily applicable to Lenders notwithstanding the
          other
          provisions of this Agreement), then, in that event, notwithstanding anything
          to
          the contrary in any of the Loan Documents or any agreement entered into
          in
          connection with or as security for the Notes, it is agreed as follows:
          

         

        (i)
           the
          aggregate of all consideration which constitutes interest under law applicable
          to Lenders that is contracted for, taken, reserved, charged or received
          by
          Lenders under any of the Loan Documents or agreements or otherwise in connection
          with the Notes will under no circumstances exceed the Highest Lawful Rate
          allowed by such applicable law, and any excess will be canceled automatically
          and if theretofore paid will be credited by the Administrative Agent or
          the
          Lenders on the principal amount of the Obligations (or, to the extent that
          the
          principal amount of the Obligations will have been or would thereby be
          paid in
          full, refunded by Administrative Agent or the Lenders to the Borrowers);
          and

         

        
          
            61

          

          
            
            

            
            

          

          
            
            

          

        

        (ii)
           in
          the
          event that the maturity of any of the Notes is accelerated by, because
          of or
          resulting from an Event of Default under this Agreement or otherwise, or
          in the
          event of any required or permitted prepayment, then such consideration
          that
          constitutes interest under law applicable to Administrative Agent or the
          Lenders
          may never include more than the maximum amount allowed by such applicable
          law,
          and excess interest, if any, provided for in this Agreement or otherwise
          will be
          canceled automatically by Lenders as of the date of such acceleration or
          prepayment and, if theretofore paid, will be credited by Administrative
          Agent or
          the Lenders on the principal amount of the Obligations (or, to the extent
          that
          the principal amount of the Obligations will have been or would thereby
          be paid
          in full, refunded by Lenders to the Borrowers). 

         

        All
          sums
          paid or agreed to be paid to Administrative Agent or the Lenders for the
          use,
          forbearance or detention of sums due under this Agreement will, to the
          extent
          permitted by law applicable to Administrative Agent and/or the Lenders,
          be
          amortized, prorated, allocated and spread throughout the full term of the
          Loans
          evidenced by the Notes until payment in full so that the rate or amount
          of
          interest on account of any Loans under this Agreement does not exceed the
          Highest Lawful Rate allowed by such applicable law. If at any time and
          from time
          to time (i) the amount of interest payable to Lenders on any date will
          be
          computed at the highest lawful rate applicable to Lenders pursuant to this
          Section 12.12; and (ii) in respect of any subsequent interest computation
          period
          the amount of interest otherwise payable to Lenders would be less than
          the
          amount of interest payable to Lenders computed at the highest lawful rate
          applicable to such Lenders, then the amount of interest payable to Lenders
          regarding such subsequent interest computation period will continue to
          be
          computed at the Highest Lawful Rate applicable to Lenders until the total
          amount
          of interest payable to Lenders equals the total amount of interest which
          would
          have been payable to Lenders if the total amount of interest had been computed
          without giving effect to this Section 12.12. 

         

        None
          of
          the terms and provisions contained in this Agreement or in any other Loan
          Document which directly or indirectly relate to interest will ever be construed
          without reference to this Section 12.12, or be construed to create a contract
          to
          pay for the use, forbearance or detention of money at an interest rate
          in excess
          of the Highest Lawful Rate.

         

        12.13  Automatic
          Debit of Borrowers’ Operating Account.
          Upon
          Borrowers' failure to pay all such costs and expenses owed by Borrowers
          under
          Section 12.6 of this Agreement within thirty (30) days of the Administrative
          Agent's submission of invoices therefore, the Administrative Agent will
          pay such
          costs and expenses by debit to the operating account of Borrowers with
          the
          Administrative Agent without further or other notice to Borrowers.

         

        12.14  Exceptions
          to Covenants.
          The
          Borrowers are not permitted to take any action or fail to take any action
          which
          is permitted as an exception to any of the covenants contained in this
          Agreement
          or which is within the permissible limits of any of the covenants contained
          in
          this Agreement if such action or omission would result in the breach of
          any
          other covenant contained in this Agreement.

         

        12.15  Conflict
          with Other Loan Documents.
          To the
          extent the terms and provisions of any of the other Loan Documents are
          in
          conflict with the terms and provisions hereof, this Agreement will be deemed
          controlling.

         

        
          
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        12.16  Lost
          Documents.
          On
          receipt of an affidavit of an officer of the Administrative Agent as to
          the
          loss, theft, destruction or mutilation of the Notes or Loan Documents which is
          not of public record, and, in the case of any mutilation, on the surrender
          and
          cancellation of the Notes or Loan Documents, the Borrowers or any Subsidiary
          Guarantors will issue, in lieu thereof, a replacement Note(s) or other
          Loan
          Documents in the same principal amount thereof (in the case of any of the
          Notes)
          and otherwise of like tenor.

         

        ARTICLE
          XIII

        THE
          ADMINISTRATIVE AGENT

         

        13.1  Appointment;
          Nature of Relationship.
          BOk is
          hereby appointed by each of the Lenders as its contractual representative
          (herein referred to as the "Administrative Agent") hereunder and under
          each
          other Loan Document, and each of the Lenders irrevocably authorizes the
          Administrative Agent to act as the contractual representative of such Lender
          with the rights and duties expressly set forth herein and in the other
          Loan
          Documents. The Administrative Agent agrees to act as such contractual
          representative upon the express conditions contained in this Article XIII.
          Notwithstanding the use of the defined term "Administrative Agent," it
          is
          expressly understood and agreed that the Administrative Agent will not
          have any
          fiduciary responsibilities to any Lender by reason of this Agreement or
          any
          other Loan Document and that the Administrative Agent is merely acting
          as the
          contractual representative of the Lenders with only those duties as are
          expressly set forth in this Agreement and the other Loan Documents. In
          its
          capacity as the Lenders' contractual representative, the Administrative
          Agent
          (i) does not hereby assume any fiduciary duties to any of the Lenders,
          (ii) is a
          "representative" of the Lenders within the meaning of the term "secured
          party"
          as defined in the Oklahoma Uniform Commercial Code and (iii) is acting
          as an
          independent contractor, the rights and duties of which are limited to those
          expressly set forth in this Agreement and the other Loan Documents. Each
          of the
          Lenders hereby agrees to assert no claim against the Administrative Agent
          on any
          agency theory or any other theory of liability for breach of fiduciary
          duty, all
          of which claims each Lender hereby waives.

         

        13.2  Powers.
          The
          Administrative Agent will have and may exercise such powers under the Loan
          Documents as are specifically delegated to the Administrative Agent by
          the terms
          of each thereof, together with such powers as are reasonably incidental
          thereto.
          The Administrative Agent has no implied duties to the Lenders, or any obligation
          to the Lenders to take any action thereunder except any action specifically
          provided by the Loan Documents to be taken by the Administrative
          Agent.

         

        13.3  General
          Immunity.
          Neither
          the Administrative Agent nor any of its directors, officers or employees
          will be
          liable to the Credit Parties, the Lenders or any Lender for any action
          taken or
          omitted to be taken by it or them hereunder or under any other Loan Document
          or
          in connection herewith or therewith except to the extent such action or
          inaction
          is determined in a final non-appealable judgment by a court of competent
          jurisdiction to have arisen from the gross negligence or willful misconduct
          of
          such Person provided that nothing in this Section 13.3 is intended to impair
          or
          otherwise limit (i) the rights of the Credit Parties to make claims against
          the
          LC Issuer for damages as contemplated by either proviso (ii) to the first
          sentence of Section 2.19.6 or proviso (y) to the penultimate sentence of
          Section
          2.19.9 or (ii) 

         

        
          
            63

          

          
            
            

            
            

          

          
            
            
the
            liabilities of the LC Issuer or the Administrative Agent to the Credit
            Parties
            based on a standard of care otherwise expressly designated or stipulated
            to in
            other provisions of this Agreement. 

        

         

        13.4  No
          Responsibility for Loans, Recitals.
          Neither
          the Administrative Agent nor any of its directors, officers or employees
          will be
          responsible for or have any duty to ascertain, inquire into, or verify
          (a) any
          statement, warranty or representation made in connection with any Loan
          Document
          or any borrowing hereunder; (b) the performance or observance of any of
          the
          covenants or agreements of any obligor under any Loan Document, including,
          without limitation, any agreement by an obligor to furnish information
          directly
          to each Lender; (c) the satisfaction of any condition specified in Article
          IV,
          except receipt of items required to be delivered solely to the Administrative
          Agent; (d) the existence or possible existence of any Default; (e) the
          validity,
          enforceability, effectiveness, sufficiency or genuineness of any Loan Document
          or any other instrument or writing furnished in connection therewith; (f)
          the
          value, sufficiency, creation, perfection or priority of any Lien in any
          collateral security; or (g) the financial condition of the Credit Parties
          or any
          Subsidiary Guarantor of any of the Obligations or of any of the Credit
          Parties'
          or any such Subsidiary Guarantor 's respective Subsidiaries. The Administrative
          Agent has no duty to disclose to the Lenders information that is not required
          to
          be furnished by the Credit Parties to the Administrative Agent at such
          time, but
          is voluntarily furnished by the Credit Parties to the Administrative Agent
          (either in its capacity as Administrative Agent or in its individual
          capacity).

         

        13.5  Action
          on Instructions of Lenders.
          The
          Administrative Agent will in all cases be fully protected in acting, or
          in
          refraining from acting, hereunder and under any other Loan Document in
          accordance with written instructions signed by the Required Lenders, and
          such
          instructions and any action taken or failure to act pursuant thereto will
          be
          binding on all of the Lenders. The Lenders hereby acknowledge that the
          Administrative Agent will be under no duty to take any discretionary action
          permitted to be taken by it pursuant to the provisions of this Agreement
          or any
          other Loan Document unless it is requested in writing to do so by the Required
          Lenders. The Administrative Agent will be fully justified in failing or
          refusing
          to take any action hereunder and under any other Loan Document unless it
          is
          first indemnified to its satisfaction by the Lenders pro rata against any
          and
          all liability, cost and expense that it may incur by reason of taking or
          continuing to take any such action.

         

        13.6  Employment
          of Administrative Agents; Counsel; Reliance.
          The
          Administrative Agent may execute any of its duties as Administrative Agent
          hereunder and under any other Loan Document by or through employees,
          Administrative Agents, and attorneys-in-fact and is not answerable to the
          Lenders, except as to money or securities received by it or its authorized
          Administrative Agents, for the default or misconduct of any such Administrative
          Agents or attorneys-in-fact selected by it with reasonable care. The
          Administrative Agent will be entitled to advice of counsel concerning the
          contractual arrangement between the Administrative Agent and the Lenders
          and all
          matters pertaining to the Administrative Agent's duties hereunder and under
          any
          other Loan Document. The Administrative Agent will be entitled to rely
          upon any
          Note, notice, consent, certificate, affidavit, letter, telegram, statement,
          paper or document believed by it to be genuine and correct and to have
          been
          signed or sent by the proper person or persons, and, in respect to legal
          matters, upon the opinion of counsel selected by the Administrative Agent,
          which
          counsel may be employees of the Administrative Agent.

         

        
          
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        13.7  Administrative
          Agent's Reimbursement and Indemnification.
          The
          Lenders agree to reimburse and indemnify the Administrative Agent ratably
          in
          proportion to their respective Commitments (or, if the Commitments have
          been
          terminated, in proportion to their Commitments immediately prior to such
          termination) (i) for any amounts not reimbursed by the Borrowers for which
          the
          Administrative Agent is entitled to reimbursement by the Borrowers under
          the
          Loan Documents, (ii) for any other expenses incurred by the Administrative
          Agent
          on behalf of the Lenders, in connection with the preparation, execution,
          delivery, administration and enforcement of the Loan Documents (including,
          without limitation, for any expenses incurred by the Administrative Agent
          in
          connection with any dispute between the Administrative Agent and any Lender
          or
          between two or more of the Lenders) and (iii) for any liabilities, obligations,
          losses, damages, penalties, actions, judgments, suits, costs, expenses
          or
          disbursements of any kind and nature whatsoever which may be imposed on,
          incurred by or asserted against the Administrative Agent in any way relating
          to
          or arising out of the Loan Documents or any other document delivered in
          connection therewith or the transactions contemplated thereby (including,
          without limitation, for any such amounts incurred by or asserted against
          the
          Administrative Agent in connection with any dispute between the Administrative
          Agent and any Lender or between two or more of the Lenders), or the enforcement
          of any of the terms of the Loan Documents or of any such other documents,
          provided that (i) no Lender will be liable for any of the foregoing to
          the
          extent any of the foregoing is found in a final non-appealable judgment
          by a
          court of competent jurisdiction to have resulted from the gross negligence
          or
          willful misconduct of the Administrative Agent and (ii) any indemnification
          required pursuant to Section 3.3(iv) will, notwithstanding the provisions
          of
          this Section 13.7, be paid by the relevant Lender in accordance with the
          provisions thereof. The obligations of the Lenders under this Section 13.7
          will
          survive payment of the Obligations and termination of this
          Agreement.

         

        13.8  Notice
          of Default.
          The
          Administrative Agent will not be deemed to have knowledge or notice of
          the
          occurrence of any Default under this Agreement unless the Administrative
          Agent
          has received written notice from a Lender or the Borrowers referring to
          this
          Agreement describing such Default and stating that such notice is a "notice
          of
          default." In the event that the Administrative Agent receives such a notice,
          the
          Administrative Agent will give prompt notice thereof to the
          Lenders.

         

        13.9  Rights
          as a Lender.
          In the
          event the Administrative Agent is a Lender, the Administrative Agent will
          have
          the same rights and powers hereunder and under any other Loan Document
          with
          respect to its Commitment and its Loans as any Lender and may exercise
          the same
          as though it were not the Administrative Agent, and the term "Lender" or
          "Lenders" will, at any time when the Administrative Agent is a Lender,
          unless
          the context otherwise indicates, include the Administrative Agent in its
          individual capacity. The Administrative Agent and its Affiliates may accept
          deposits from, lend money to, and generally engage in any kind of trust,
          debt,
          equity or other transaction, in addition to those contemplated by this
          Agreement
          or any other Loan Document, with the Credit Parties in which the Credit
          Parties
          are not restricted hereby from engaging with any other Person.

         

        13.10  Lender
          Credit Decision.
          Each
          Lender acknowledges that it has, independently and without reliance upon
          the
          Administrative Agent, the Syndication Agent or any other Lender and based
          on the
          financial statements prepared by the Credit Parties and such other documents
          and
          information as it has deemed appropriate, made its own 

         

        
          
            65

          

          
            
            

            
            

          

          
            
            
credit
            analysis and decision to enter into this Agreement and the other Loan
            Documents.
            Each Lender also acknowledges that it will, independently and without
            reliance
            upon the Administrative Agent, the Syndication Agent or any other Lender
            and
            based on such documents and information as it deems appropriate at the
            time,
            continue to make its own credit decisions in taking or not taking action
            under
            this Agreement and the other Loan Documents.

        

         

        13.11  Successor
          Administrative Agent.
          The
          Administrative Agent may resign at any time by giving written notice thereof
          to
          the Lenders and Unit, such resignation to be effective upon the appointment
          of a
          successor Administrative Agent or, if no successor Administrative Agent
          has been
          appointed, 45 days after the retiring Administrative Agent gives notice
          of its
          intention to resign. The Administrative Agent may be removed at any time
          with or
          without cause by written notice received by the Administrative Agent from
          the
          Required Lenders, such removal to be effective on the date specified by
          the
          Required Lenders. Upon any such resignation or removal, the Required Lenders
          will have the right to appoint, on behalf of the Credit Parties and the
          Lenders,
          a successor Administrative Agent. If no successor Administrative Agent
          will have
          been so appointed by the Required Lenders within thirty days after the
          resigning
          Administrative Agent's giving notice of its intention to resign, then the
          resigning Administrative Agent may appoint, on behalf of the Credit Parties
          and
          the Lenders, a successor Administrative Agent. Notwithstanding the previous
          sentence, the Administrative Agent may at any time without the consent
          of the
          Credit Parties or any Lender, appoint any of its Affiliates which is a
          commercial bank as a successor Administrative Agent hereunder. If the
          Administrative Agent has resigned or been removed and no successor
          Administrative Agent has been appointed, the Lenders may perform all the
          duties
          of the Administrative Agent hereunder and the Borrowers will make all payments
          in respect of the Obligations to the applicable Lender and for all other
          purposes will deal directly with the Lenders. No successor Administrative
          Agent
          will be deemed to be appointed hereunder until such successor Administrative
          Agent has accepted the appointment. Any such successor Administrative Agent
          will
          be a commercial bank having capital and retained earnings of at least
          $100,000,000. Upon the acceptance of any appointment as Administrative
          Agent
          hereunder by a successor Administrative Agent, such successor Administrative
          Agent will thereupon succeed to and become vested with all the rights,
          powers,
          privileges and duties of the resigning or removed Administrative Agent.
          Upon the
          effectiveness of the resignation or removal of the Administrative Agent,
          the
          resigning or removed Administrative Agent will be discharged from its duties
          and
          obligations hereunder and under the Loan Documents. After the effectiveness
          of
          the resignation or removal of an Administrative Agent, the provisions of
          this
          Article XIII will continue in effect for the benefit of such Administrative
          Agent in respect of any actions taken or omitted to be taken by it while
          it was
          acting as the Administrative Agent hereunder and under the other Loan Documents.
          

         

        13.12  Syndication
          Agent.
          No
          Lender identified in this Agreement as the Syndication Agent will have
          any
          right, power, obligation, liability, responsibility or duty under this
          Agreement
          other than those applicable to all Lenders as such. Without limiting the
          foregoing, no Lender will have or be deemed to have a fiduciary relationship
          with any other Lender. Each Lender hereby makes the same acknowledgments
          with
          respect to such Lenders as it makes with respect to the Administrative
          Agent in
          Section 13.10.

         

        13.13  Delegation
          to Affiliates.
          The
          Borrowers and the Lenders agree that the Administrative Agent may delegate
          any
          of its duties under this Agreement to any of its Affiliates. Any Affiliate
          of
          the Administrative Agent which 

         

        
          
            66

          

          
            
            

            
            

          

          
            
            
performs
            duties in connection with this Agreement will be entitled to the same
            benefits
            of the indemnification, waiver and other protective provisions to which
            the
            Administrative Agent is entitled under Articles XII and XIII.

        

         

        ARTICLE
          XIV

        BENEFIT
          OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

         

        14.1  Successors
          and Assigns.
          The
          terms and provisions of the Loan Documents will be binding upon and inure
          to the
          benefit of the Credit Parties which are parties thereto and the Lenders
          and
          their respective successors and assigns permitted hereby, except that (i)
          the
          Credit Parties will not have the right to assign their rights or obligations
          under the Loan Documents to which they are parties without the prior written
          consent of each Lender, (ii) any assignment by any Lender must be made
          in
          compliance with Section 14.3, and (iii) any transfer by participation must
          be
          made in compliance with Section 14.2. Any attempted assignment or transfer
          by
          any party not made in compliance with this Section 14.1 will be null and
          void,
          unless such attempted assignment or transfer is treated as a participation
          in
          accordance with Section 14.3.2. The parties to this Agreement acknowledge
          that
          clause (ii) of this Section 14.1 relates only to absolute assignments and
          this
          Section 14.1 does not prohibit assignments creating security interests,
          including, without limitation, any pledge or assignment by any Lender of
          all or
          any portion of its rights under this Agreement and any Note to a Federal
          Reserve
          Bank; provided, however, that no such pledge or assignment creating a security
          interest will release the transferor Lender from its obligations hereunder
          unless and until the parties thereto have complied with the provisions
          of
          Section 14.3. The Administrative Agent may treat the Person which made
          any Loan
          or which holds any Note as the owner thereof for all purposes hereof unless
          and
          until such Person complies with Section 14.3; provided, however, that the
          Administrative Agent may in its discretion (but will not be required to)
          follow
          instructions from the Person which made any Loan or which holds any Note
          to
          direct payments relating to such Loan or Note to another Person. Any assignee
          of
          the rights to any Loan or any Note agrees by acceptance of such assignment
          to be
          bound by all the terms and provisions of the Loan Documents. Any request,
          authority or consent of any Person, who at the time of making such request
          or
          giving such authority or consent is the owner of the rights to any Loan
          (whether
          or not a Note has been issued in evidence thereof), will be conclusive
          and
          binding on any subsequent holder or assignee of the rights to such
          Loan.

         

        14.2  Participations.

         

        14.2.1.  Permitted
          Participants; Effect.
          Any
          Lender may, in the ordinary course of its business and in accordance with
          applicable law, at any time upon obtaining the prior written consent of
          Unit
          sell to one or more banks or other entities ("Participants") participating
          interests in any Outstanding Credit Exposure of such Lender, any Note held
          by
          such Lender, any Commitment of such Lender or any other interest of such
          Lender
          under the Loan Documents. In the event of any such sale by a Lender of
          participating interests to a Participant, such Lender's obligations under
          the
          Loan Documents will remain unchanged, such Lender will remain solely responsible
          to the other parties hereto for the performance of such obligations, such
          Lender
          will remain the owner of its Outstanding Credit Exposure and the holder
          of any
          Note issued to it in evidence thereof for all purposes under the Loan Documents,
          all amounts payable by the Borrowers under this Agreement will 

         

        
          
            67

          

          
            
            

            
            

          

          
            
            
be
            determined as if such Lender had not sold such participating interests,
            and the
            Borrowers and the Administrative Agent will continue to deal solely and
            directly
            with such Lender in connection with such Lender's rights and obligations
            under
            the Loan Documents.

        

         

        14.2.2.  Voting
          Rights.
          Each
          Lender will retain the sole right to approve, without the consent of any
          Participant, any amendment, modification or waiver of any provision of
          the Loan
          Documents other than any amendment, modification or waiver with respect
          to any
          Credit Extension or Commitment in which such Participant has an interest
          which
          would require consent of all of the Lenders pursuant to the terms of Section
          11.2 or of any other Loan Document.

         

        14.2.3.  Benefit
          of Certain Provisions.
          The
          Borrowers agree that each Participant will be deemed to have the right
          of setoff
          provided in Section 6.11 in respect of its participating interest in amounts
          owing under the Loan Documents to the same extent as if the amount of its
          participating interest were owing directly to it as a Lender under the
          Loan
          Documents, provided that each Lender will retain the right of setoff provided
          in
          Section 6.11 with respect to the amount of participating interests sold
          to each
          Participant. The Lenders agree to share with each Participant, and each
          Participant, by exercising the right of setoff provided in Section 6.11,
          agrees
          to share with each Lender, any amount received pursuant to the exercise
          of its
          right of setoff, such amounts to be shared in accordance with Section 6.11(c)
          as
          if each Participant were a Lender. The Borrowers further agree that each
          Participant will be entitled to the benefits of Sections 3.1, 3.2, 3.4
          and 3.5
          to the same extent as if it were a Lender and had acquired its interest
          by
          assignment pursuant to Section 14.3, provided that (i) a Participant will
          not be
          entitled to receive any greater payment under Section 3.1, 3.2 or 3.5 than
          the
          Lender who sold the participating interest to such Participant would have
          received had it retained such interest for its own account, unless the
          sale of
          such interest to such Participant is made with the prior written consent
          of the
          Borrowers, and (ii) any Participant not incorporated under the laws of
          the
          United States of America or any State thereof agrees to comply with the
          provisions of Section 3.3 to the same extent as if it were a
          Lender.

         

        14.3  Assignments.

         

        14.3.1.  Permitted
          Assignments.
          Any
          Lender may, in the ordinary course of its business and in accordance with
          applicable law, at any time assign to one or more banks or other entities
          ("Purchasers") all or any part of its rights and obligations under the
          Loan
          Documents. Such assignment will be substantially in the form of Exhibit
          C or in
          such other form as may be agreed to by the parties thereto. The consent
          of Unit,
          the Administrative Agent and the LC Issuer will be required prior to an
          assignment becoming effective with respect to a Purchaser which is not
          a Lender
          or an Affiliate thereof; provided, however, that if a Default has occurred
          and
          is continuing, the consent of the Unit will not be required. Such consent
          of
          Unit will not be unreasonably withheld or delayed. Each such assignment
          with
          respect to a Purchaser which is not a Lender or an Affiliate thereof will
          (unless each of the Credit Parties and the Administrative Agent otherwise
          consent) be in an amount not less than the lesser of (i) $10,000,000 or
          (ii) the
          remaining amount of the assigning Lender's 

         

        
          
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Commitment
            (calculated as at the date of such assignment) or outstanding Loans (if
            the
            applicable Commitment has been terminated).

        

         

        14.3.2.  Effect;
          Effective Date.
          Upon
          (i) delivery to the Administrative Agent of a notice of assignment,
          substantially in the form attached as Exhibit I to Exhibit C (a "Notice
          of
          Assignment"), together with any consents required by Section 14.3.1, and
          (ii)
          payment of a $500 fee to the Administrative Agent for processing such
          assignment, such assignment will become effective on the effective date
          specified in such Notice of Assignment. The Notice of Assignment will contain
          a
          representation by the Purchaser to the effect that none of the consideration
          used to make the purchase of the Commitment and Outstanding Credit Exposure
          under the applicable assignment agreement are "plan assets" as defined
          under
          ERISA and that the rights and interests of the Purchaser in and under the
          Loan
          Documents will not be "plan assets" under ERISA. On and after the effective
          date
          of such assignment, such Purchaser will for all purposes be a Lender to
          this
          Agreement and any other Loan Document executed by or on behalf of the Lenders
          and will have all the rights and obligations of a Lender under the Loan
          Documents, to the same extent as if it were an original party hereto, and
          no
          further consent or action by the Credit Parties, the Lenders or the
          Administrative Agent will be required to release the transferor Lender
          with
          respect to the percentage of the Aggregate Commitment and Outstanding Credit
          Exposure assigned to such Purchaser. Upon the consummation of any assignment
          to
          a Purchaser pursuant to this Section 14.3.2, the transferor Lender, the
          Administrative Agent and the Borrowers will, if the transferor Lender or
          the
          Purchaser desires that its Loans be evidenced by Notes, make appropriate
          arrangements so that new Notes or, as appropriate, replacement Notes are
          issued
          to such transferor Lender and new Notes or, as appropriate, replacement
          Notes,
          are issued to such Purchaser, in each case in principal amounts reflecting
          their
          respective Commitments, as adjusted pursuant to such assignment.

         

        14.3.3.  Register.
          The
          Administrative Agent, acting solely for this purpose as an Administrative
          Agent
          of the Borrowers, will maintain at its main banking offices in Tulsa, Oklahoma,
          a copy of each Assignment and Assumption delivered to it and a register
          for the
          recordation of the names and addresses of the Lenders, and the Commitments
          of,
          and principal amounts of the Loans owing to, each Lender pursuant to the
          terms
          hereof from time to time (the "Register"). The entries in the Register
          will be
          conclusive, and the Borrowers, the Administrative Agent and the Lenders
          may
          treat each Person whose name is recorded in the Register pursuant to the
          terms
          hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding
          notice to the contrary. The Register will be available for inspection by
          the
          Borrowers and any Lender, at any reasonable time and from time to time
          upon
          reasonable prior notice.

         

        14.4  Dissemination
          of Information.
          The
          Borrowers authorize each Lender to disclose to any Participant or Purchaser
          or
          any other Person acquiring an interest in the Loan Documents by operation
          of law
          (each a "Transferee") and any prospective Transferee any and all information
          in
          such Lender's possession concerning the creditworthiness of the Credit
          Parties
          and their Subsidiaries, including without limitation any information contained
          in any reports provided to Administrative Agent; provided that each Transferee
          and prospective Transferee agrees to be bound by this Agreement.

         

        
          
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        14.5  Tax
          Treatment.
          If any
          interest in any Loan Document is transferred to any Transferee which is
          not
          incorporated under the laws of the United States or any State thereof,
          the
          transferor Lender will cause such Transferee, concurrently with the
          effectiveness of such transfer, to comply with the provisions of Section
          3.3(iv).

         

        14.6  Procedure
          for Increases and Addition of New Lenders.
          This
          Agreement permits (i) increases in existing Lenders' Commitments and (ii)
          the
          admission of new Lenders providing new Commitments, subject to the consent
          of
          the Agent and Unit, provided that neither the Aggregate Commitment nor
          the
          Maximum Credit Amount may be increased as a result of (i) or (ii) above
          without
          the consent of all Lenders. Any amendment hereto for an increase in a Lender's
          Commitment or addition of a new Lender will be in the form attached hereto
          as
          Exhibit D. Within a reasonable time after the effective date of either
          (i) or
          (ii) above, the Administrative Agent will, and is hereby authorized and
          directed
          to, revise the Lenders Schedule reflecting such increase and will distribute
          revised Lenders Schedule to each of the Lenders and Unit, and the revised
          Lenders Schedule will replace the old Lenders Schedule and become part
          of this
          Agreement. On the Business Day following any increase, all outstanding
          Alternate
          Base Rate Advances will be reallocated among the Lenders (including any
          newly
          added Lenders) in accordance with the Lenders' respective revised Pro Rata
          Shares. Eurodollar Advances will not be reallocated among the Lenders prior
          to
          the expiration of the applicable Interest Period in effect at the time
          of any
          increase.

         

        ARTICLE
          XV

        NOTICES/CONSENTS

         

        15.1  Notices.
          Except
          as otherwise permitted by Section 2.9 with respect to Borrowing Notices,
          all
          notices, requests and other communications to any party hereunder will
          be in
          writing (including facsimile transmission or similar writing) and will
          be given
          to such party: (x) in the case of the Borrowers, the Administrative Agent
          and
          existing Lenders signatory parties hereto, at its address or facsimile
          number
          set forth on the signature pages hereof, (y) in the case of any future
          or
          additional Lender, at its address or facsimile number set forth on the
          Lenders
          Schedule or the executed Exhibit D pertaining thereto or (z) in the case
          of any
          party, at such other address or facsimile number as such party may hereafter
          specify for the purpose by notice to the Administrative Agent and the Borrowers
          in accordance with the provisions of this Section 15.1. Each such notice,
          request or other communication will be effective (i) if given by facsimile
          transmission, when transmitted to the facsimile number specified in this
          Section
          and confirmation of receipt is received, (ii) if given by mail, 72 hours
          after
          such communication is deposited in the mails with first class postage prepaid,
          addressed as aforesaid, or (iii) if given by any other means, when delivered
          at
          the address specified in this Section; provided that notices to the
          Administrative Agent under Article II will not be effective until
          received.

         

        15.2  Change
          of Address.
          The
          Borrowers, the Administrative Agent and any Lender (i) may each change
          the
          address for service of notice upon it by a notice in writing to the other
          parties hereto and (ii) will give such a notice if its address will
          change.

         

        15.3  Consent
          to Amendments.
          This
          Agreement and any of the other Loan Documents may be amended, and the Borrowers
          may take any action herein prohibited, or omit to perform any act herein
          required to be performed by it, if the Borrowers will obtain the written
          consent
          to such amendment, action or omission to act, of the Administrative Agent
          

         

        
          
            70

          

          
            
            

            
            

          

          
            
            
and
            the
            Lenders. Each holder of any of the Notes at the time or thereafter outstanding
            will be bound by any consent authorized by this Section 15.3, whether
            or not the
            Notes will have been marked to indicate such consent, but any Notes issued
            thereafter may bear a notation referring to any such consent. No course
            of
            dealing between the Credit Parties and any holder of any of the Notes
            nor any
            delay in exercising any rights hereunder or under the Notes will operate
            as a
            waiver of any rights of any holder of any of the Notes. As used herein
            and in
            the Notes, the term "this Agreement" and references thereto will mean
            this
            Agreement as it may from time to time be amended, modified or
            supplemented.

        

         

        15.4  USA
          PATRIOT Act Notice.
          IMPORTANT
          INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT.
          To help
          the government fight the funding of terrorism and money laundering activities,
          federal law requires all financial institutions to obtain, verify, and
          record
          information that identifies each person or entity that opens an account,
          including any deposit account, treasury management account, loan, other
          extension of credit, or other financial services product. What this means
          for
          borrowers: When a borrower opens an account, the Bank will ask for the
          borrower's name, residential address, tax identification number, and other
          information that will allow the Bank to identify the borrower, including
          the
          borrower's date of birth if the borrower is an individual. The Bank may
          also
          ask, if the borrower is an individual, to see the borrower's driver's license
          or
          other identifying documents, and, if the borrower is not an individual,
          to see
          the borrower's legal organizational documents or other identifying documents.
          The Bank will verify and record the information the Bank obtains from the
          borrower pursuant to the USA PATRIOT Act, and will maintain and retain
          that
          record in accordance with the regulations promulgated under the USA PATRIOT
          Act.

         

        ARTICLE
          XVI

        COUNTERPARTS

         

        This
          Agreement may be executed in any number of counterparts, all of which taken
          together will constitute one agreement, and any of the parties hereto may
          execute this Agreement by signing any such counterpart. This Agreement
          will be
          effective when it has been executed by the Borrowers, the Administrative
          Agent,
          the LC Issuer and the Lenders and each party has notified the Administrative
          Agent by facsimile transmission or electronic transmission (e-mail) that
          it has
          taken such action. All closing documents will be furnished to the Administrative
          Agent with sufficient counterparts so that the Administrative Agent may
          furnish
          one to each of the Lenders.

         

        ARTICLE
          XVII

        CHOICE
          OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

         

        17.1  CHOICE
          OF LAW.
          THE
          LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS CHOICE OF
          LAW
          PROVISION) WILL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
          STATE
          OF OKLAHOMA, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS
          AND
          WILL BE DEEMED TO HAVE BEEN MADE OR INCURRED UNDER THE LAWS OF THE STATE
          OF
          OKLAHOMA EXCEPT ONLY WHERE THE APPLICABLE REMEDIAL OR PROCEDURAL LAWS OF
          OTHER
          JURISDICTIONS IN 

         

        
          
            71

          

          
            
            

            
            

          

          
            
            
WHICH
            PORTIONS OF THE COLLATERAL ARE SITUATED ARE APPLICABLE
            THERETO.

        

         

        17.2  CONSENT
          TO JURISDICTION.
          THE
          BORROWERS, THE ADMINISTRATIVE AGENT AND LENDERS HEREBY IRREVOCABLY SUBMIT
          TO THE
          NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR OKLAHOMA STATE
          COURT
          SITTING IN TULSA, OKLAHOMA IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
          RELATING TO ANY LOAN DOCUMENTS AND THE BORROWERS, THE ADMINISTRATIVE AGENT
          AND
          LENDERS HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION
          OR
          PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY
          WAIVES
          ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH
          SUIT,
          ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN
          INCONVENIENT FORUM. NOTHING HEREIN WILL LIMIT THE RIGHT OF THE ADMINISTRATIVE
          AGENT, THE LC ISSUER OR ANY LENDER TO BRING PROCEEDINGS AGAINST THE BORROWERS
          IN
          THE COURTS OF ANY OTHER JURISDICTION.

         

        17.3  NO
          ORAL AGREEMENTS.
          THE
          LOAN DOCUMENTS EMBODY THE ENTIRE AGREEMENT AND UNDERSTANDING BETWEEN THE
          PARTIES
          AND SUPERSEDE ALL OTHER AGREEMENTS AND UNDERSTANDINGS BETWEEN SUCH PARTIES
          RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF, THE LOAN DOCUMENTS REPRESENT
          THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
          EVIDENCE
          OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
          THERE
          ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

         

        17.4  EXCULPATION
          PROVISIONS.
          EACH
          OF THE PARTIES HERETO SPECIFICALLY AGREES THAT IT HAS A DUTY TO READ THIS
          AGREEMENT, THE NOTES AND THE LOAN DOCUMENTS AND AGREES THAT IT IS CHARGED
          WITH
          NOTICE AND KNOWLEDGE OF THE TERMS OF THIS AGREEMENT, THE NOTES AND THE
          OTHER
          LOAN DOCUMENTS; THAT IT HAS IN FACT READ THIS AGREEMENT AND IS FULLY INFORMED
          AND HAS FULL NOTICE AND KNOWLEDGE OF THE TERMS, CONDITIONS AND EFFECTS
          OF THIS
          AGREEMENT; THAT IT HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF
          ITS
          CHOICE THROUGHOUT THE NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS AGREEMENT,
          THE NOTES AND THE OTHER LOAN DOCUMENTS; AND HAS RECEIVED THE ADVICE OF
          ITS
          ATTORNEY IN ENTERING INTO THIS AGREEMENT, THE NOTES AND THE OTHER LOAN
          DOCUMENTS; AND THAT IT RECOGNIZES THAT CERTAIN OF THE TERMS OF THIS AGREEMENT,
          THE NOTES AND THE OTHER LOAN DOCUMENTS RESULT IN ONE PARTY ASSUMING THE
          LIABILITY INHERENT IN SOME ASPECTS OF THE TRANSACTION AND RELIEVING THE
          OTHER
          PARTY OF ITS RESPONSIBILITY FOR SUCH LIABILITY. EACH PARTY HERETO AGREES
          AND
          COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY
          EXCULPATORY PROVISION OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS ON
          THE
          BASIS 

         

        
          
            72

          

          
            
            

            
            

          

          
            
            
THAT
            THE PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE PROVISION
            IS
            NOT "CONSPICUOUS." 

        

         

        17.5  WAIVER
          OF JURY TRIAL, PUNITIVE DAMAGES.
          THE
          BORROWERS, THE ADMINISTRATIVE AGENT, THE LC ISSUER AND EACH LENDER HEREBY
          WAIVE
          TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY,
          ANY
          MANNER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING
          OUT
          OF, RELATED TO OR CONNECTED WITH ANY LOAN DOCUMENT OR THE RELATIONSHIP
          ESTABLISHED THEREUNDER. EACH BORROWER AND EACH LENDER HEREBY FURTHER (A)
          IRREVOCABLY WAIVE, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT
          IT MAY
          HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY "SPECIAL DAMAGES,"
          AS
          DEFINED BELOW, (B) CERTIFY THAT NO PARTY HERETO NOR ANY REPRESENTATIVE
          OR AGENT
          OR COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
          OR
          IMPLIED THAT SUCH PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
          ENFORCE
          THE FOREGOING WAIVERS, AND (C) ACKNOWLEDGE THAT IT HAS BEEN INDUCED TO
          ENTER
          INTO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE TRANSACTIONS CONTEMPLATED
          HEREBY AND THEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
          CONTAINED IN THIS SECTION. AS USED IN THIS SECTION, "SPECIAL DAMAGES" INCLUDES
          ALL SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES (REGARDLESS
          OF HOW
          NAMED), BUT DOES NOT INCLUDE ANY PAYMENTS OR FUNDS WHICH ANY PARTY HERETO
          HAS
          EXPRESSLY PROMISED TO PAY OR DELIVER TO ANY OTHER PARTY
          HERETO.

         

        (SIGNATURE
          PAGES TO FOLLOW)

        

         

        
          
            
              
                	 	 	 

              

              

            

            73

          

          
            
            

            
            

          

          
            
            

            
            

          

        

        IN
          WITNESS WHEREOF, the Borrowers, the Lenders and the Administrative Agent
          have
          executed this Agreement as of the date first above written.

         

        UNIT
          CORPORATION,
          a
          Delaware corporation,

        SUPERIOR
          PIPELINE COMPANY, L.L.C.,

        an
          Oklahoma limited liability company,

        UNIT
          PETROLEUM COMPANY,
          an
          Oklahoma

        corporation,

        UNIT
          DRILLING COMPANY,
          an
          Oklahoma

        corporation,
          and

        UNIT
          TEXAS DRILLING, L.L.C.,
          an
          Oklahoma

        limited
          liability company

         

        By     
          /s/ Larry D.
          Pinkston                 

               
          Larry D. Pinkston, as President of 

               
          UNIT CORPORATION, 

               
          UNIT PETROLEUM COMPANY, and

               
          UNIT DRILLING COMPANY, and

               
          as Chairman of SUPERIOR PIPELINE

               
          COMPANY, L.L.C, and

               
          as manager of UNIT TEXAS DRILLING,

               
          L.L.C.

         

        
                                                 
            7130 South Lewis Avenue, Suite 1000

        

                                               
          Tulsa, Oklahoma 74136

               
          Telephone: (918) 493-7700

               
          Facsimile (918) 493-7711

               
          Attention: Larry D. Pinkston

         

        

         

        
          
            
              
                	 	 	 

              

              

            

            
            

          

          
            
            

            
            

          

          
            
            

            
            

          

        

        BANK
          OF OKLAHOMA, NATIONAL

        ASSOCIATION,
          as LC
          Issuer, as Administrative

        Agent,
          and as a Lender 

         

        By     
          /s/ Pam
          Schloeder                  

               
          Pam Schloeder

               
          Senior Vice President

         

               
          101 East Second Street

               
          Bank of Oklahoma Tower -8th
          floor/Energy

               
          Department

               
          One Williams Center

               
          Tulsa, Oklahoma 74172

               
          Telephone: (918) 588-6012

               
          Facsimile: (918) 588-6880

         

        

         

        
          
            
              
                	 	 	 

              

              

            

            
            

          

          
            
            

            
            

          

          
            
            

            
            

          

        

        BANK
          OF AMERICA, N.A.,
          a
          Lender

         

        By      /s/
          Christen A.
          Lacey             

               
          Christen A. Lacey

               
          Principal

         

               
          100 Federal Street

               
          Boston, MA 02110

               
          Telephone: (617) 434-6816

               
          Facsimile: (617) 434-3652

         

        

         

        

         

        
          
            
              
                	 	 	 

              

              

            

            
            

          

          
            
            

            
            

          

          
            
            

            
            

          

        

        BMO
          CAPITAL MARKETS FINANCING, 

        INC.,
          a
          Lender

         

        By     
          /s/ Mary Lou
          Allen                    

               
          Mary Lou Allen,

               
          Vice President

         

               
          BMO Capital Markets Financing, Inc.

               
          Houston Agency

               
          700 Louisiana Street

               
          4400 Bank of America Center

               
          Houston, Texas 77002

               
          Telephone: (713) 546-9761

               
          Facsimile: (713) 223-4007

         

        

         

        
          
            
              
                	 	 	 

              

              

            

            
            

          

          
            
            

            
            

          

          
            
            

            
            

          

        

        COMPASS
          BANK,
          a
          Lender

         

        By     
          /s/ Kathleen J.
          Bowen                 
   

               
          Kathleen J. Bowen

               
          Senior Vice President

         

               
          24 Greenway Plaza

               
          Suite 1400A

               
          Houston, Texas 77046

               
          Telephone: (713) 968-8273

               
          Facsimile: (713) 968-8292

         

        

        
          
            
              
                	 	 	 

              

              

            

            
            

          

          
            
            

            
            

          

          
            
            

            
            

          

        

        FORTIS
          CAPITAL CORP., a
          Lender

         

        By    /s/
          Michele
          Jones                     

               
          Michele Jones

               
          Senior Vice President

         

        By     /s/
          Darrell
          Holley                  
   

               
          Darrell Holley

               
          Managing Director

         

        
                                                 
            15455 North Dallas Parkway

        

               
          Suite 1400

               
          Addison, Texas 75001

               
          Telephone: (214) 953-9308

               
          Facsimile: (214) 754-5982

         

        

        
          
            
              
                	 	 	 

              

              

            

            
            

          

          
            
            

            
            

          

          
            
            

            
            

          

        

        COMERICA
          BANK, a
          Lender

         

        By     /s/
          Juli
          Bieser                          
   

               
          Juli Bieser, 

               
          Senior Vice President

         

               
          910 Louisiana

               
          Suite 410 

               
          Houston, Texas 77002

               
          Telephone: (713) 220-5640

               
          Facsimile: (713) 220-5651

         

        

        
          
            
              
                	 	 	 

              

              

            

            
            

          

          
            
            

            
            

          

          
            
            

            
            

          

        

        STERLING
          BANK,
          a
          Lender

         

        By     
          /s/ Melissa
          Bauman                   
  

               
          Melissa Bauman, 

               
          Senior Vice President

         

               
          2550 N. Loop West

               
          Suite 800

               
          Houston, Texas 77092

               
          Telephone: (713) 507-7377

               
          Facsimile: (713) 507-7948

         

        

        
          
            
              
                	 	 	 

              

              

            

            
            

          

          
            
            

            
            

          

          
            
            

            
            

          

        

        CALYON
          NEW YORK BRANCH, a
          Lender

         

        By    
          /s/ Tom
          Byargeon                     
   

               
          Tom Byargeon

               
          Managing Director

         

        By     
          /s/ Michael
          Willis                     
  

               
          Michael Willis

               
          Director

         

         

               
          1301 Travis Street

               
          Suite 2100

               
          Houston, Texas 77002

               
          Telephone: (713) 890-8616

               
          Facsimile: (713) 890-8668

         

        
          
            
            

          

          
            
            

            
            

          

          
            
            

          

        

        
          EXHIBIT
            A

           

          FORM
            OF PROMISSORY NOTE

           

          (______________)

           

          $____________                                                       May
            24, 2007

                                                                        
            Tulsa, Oklahoma

           

          FOR
            VALUE RECEIVED, the undersigned, UNIT CORPORATION, a Delaware
            corporation, SUPERIOR PIPELINE COMPANY, L.L.C., an Oklahoma limited liability
            company, UNIT DRILLING COMPANY, an Oklahoma corporation, UNIT PETROLEUM
            COMPANY,
            an Oklahoma corporation, and UNIT TEXAS DRILLING, L.L.C., an Oklahoma
            limited
            liability company (individually and collectively the "Borrowers"), jointly
            and
            severally promise to pay to the order of ______________________ ("____"),
            with
            interest, the principal sum of ________________________ and NO/100ths
            DOLLARS
            ($____________) or, if less, the aggregate principal amount of all advances
            outstanding from time to time hereunder, made by ______ to Borrowers
            pursuant to
            the Credit Agreement (hereinafter defined) and unless otherwise provided
            in the
            Credit Agreement, the principal balance of this Note outstanding on the
            Facility
            Termination Date, with interest payments due on each applicable Payment
            Date.
            This Note is issued pursuant to and subject to the terms of a certain
            First
            Amended and Restated Senior Credit Agreement dated as of May 24, 2007,
            among
            Borrowers, the Lenders signatory parties thereto (collectively the "Lenders"),
            with Bank of Oklahoma, National Association, as the Administrative Agent
            for the
            Lenders (in such capacity, the "Administrative Agent") (such Credit Agreement,
            as hereafter amended, modified, supplemented or restated from time to
            time
            collectively referred to as the "Credit Agreement"). Capitalized terms
            used and
            not otherwise defined herein shall have the meanings assigned to them
            in the
            Credit Agreement.

           

          Except
            as hereinafter provided in connection with a Default,
            interest shall accrue on the outstanding principal balance hereof and
            on any
            past due interest to the Facility Termination Date at the rate or rates
            per
            annum determined pursuant to the Pricing Schedule annexed to the Credit
            Agreement, as provided in and calculated pursuant to the Credit Agreement.

           

          The
            rate of interest payable upon the indebtedness evidenced by
            this Note shall not at any time exceed the maximum rate of interest permitted
            under the laws of the State of Oklahoma or federal laws to the extent
            they apply
            to loans of the type and character evidenced by this Note.

           

          All
            payments under this Note shall be made in legal tender of the
            United States of America or in other immediately available funds at the
            offices
            of the Administrative Agent at Bank of Oklahoma Tower, One Williams Center,
            Seven East Second Street, Tulsa, Oklahoma 74172, and no credit shall
            be given
            for any payment received by check, draft or other instrument or item
            until such
            time as the Administrative Agent or the holder hereof shall have received
            credit
            therefor from the Administrative Agent's or the holder's collecting agent
            or, in
            the event no collecting agent is used, from the bank or other financial
            institution upon which said check, draft or other instrument or item
            is drawn.
            If any payment is due upon a Saturday or Sunday or upon any other day
            on which
            state or national banks in the 

           

          
            
              
              

              
              

            

            
              
              
State of Oklahoma are closed
              for business by virtue of a legal holiday for such banks, such payment
              shall be
              due and payable on the next succeeding Business Day, and interest shall
              accrue
              to such day.

          

           

          The
            Borrowers may borrow and reborrow hereunder at any time and
            from time to time as provided in the Credit Agreement and may prepay
            this Note
            in whole or in part, subject to the prepayment limitations contained
            in the
            Credit Agreement; provided, however, that any partial prepayment shall
            be
            applied first to accrued interest, then to the unpaid principal balance
            hereof.

           

          From
            time to time the Borrowers and the Lenders may agree to
            extend the maturity date of this Note or to renew this Note, in whole
            or in
            part, or a new note of different form may be substituted for this Note
            and/or
            the rate of interest may be changed, or changes may be made in consideration
            of
            loan extensions, and the holder, from time to time, may waive or surrender,
            either in whole or in part, any rights, guarantees, security interests,
            or liens
            given for the benefit of the holder in connection with the payment and
            the
            securing the payment of this Note; but no such occurrences shall in any
            manner
            affect, limit, modify or otherwise impair any rights, guarantees or security
            of
            the holder not specifically waived, released or surrendered in writing,
            nor
            shall the Borrowers or any guarantor, endorser or any other person who
            is or
            might be liable hereon, either primarily or contingently, be released
            from such
            liability by reason of the occurrence of any such event. The holder hereof,
            from
            time to time, shall have the unlimited right to release any person who
            might be
            liable hereon; and such release shall not affect or discharge the liability
            of
            any other person who is or might be liable hereon.

           

          This
            Note is subject to and governed by the terms, provisions,
            conditions and limitations of the Credit Agreement concerning, among
            other
            matters, acceleration following a Default, imposition of default rates
            of
            interest during the continuance of a Default, methods of payment, minimum
            amounts of each Advance, selection of the type of Advance and applicable
            Interest Period for new Advances, Borrowing Base calculations, Maximum
            Credit
            Amount, Aggregate Commitment amounts, a negative pledge of certain assets
            of the
            Borrowers, rights of set off or offset in connection therewith and all
            other
            matters terms, provisions and agreements therein prescribed or governed.

           

          The
            Borrowers and all endorsers, guarantors and sureties hereby
            severally waive protest, presentment, demand, and notice of protest and
            nonpayment in case this Note or any payment due hereunder is not paid
            when due;
            and they agree to any renewal of this Note or to any extension, acceleration
            or
            postponement of the time of payment, or any other indulgence, to any
            substituting, exchange or release of collateral and to the release of
            any party
            or person primarily or contingently liable hereon without prejudice to
            the
            holder and without notice to the Borrowers or any endorser, guarantor
            or surety.
            In the event of any controversy, claim or dispute among the parties affecting
            or
            relating to the subject matter or performance of this Note, the prevailing
            party
            shall be entitled to recover from the non-prevailing party all of its
            reasonable
            costs, expenses, including reasonable attorneys' and accountants' fees.
            In the
            event the Administrative Agent or _________ is the prevailing party,
            the
            Borrowers, and any guarantor, endorser, surety or any other person who
            is or may
            become liable hereon, will, on demand, pay all such costs and expenses.

           

          
            
            

            
            

          

          
            
            

          

          [This
            Note is a replacement of that certain promissory note dated
            as of January 25, 2007, issued under the Existing Credit Agreement and
            payable
            by the Borrowers to the order of ____ in the original principal amount
            of
            $__________.] 

           

          This
            Note is issued by the Borrowers in accordance with the
            provisions of Section 2.14(iv) of the Credit Agreement and shall be governed
            by
            and construed in accordance with the laws of the State of Oklahoma. Borrowers
            agree that all suits or proceedings arising from or related to this Note
            or the
            Credit Agreement may be litigated in courts, state or federal, sitting
            in Tulsa
            County, State of Oklahoma. In furtherance of this provision, Borrowers
            hereby
            waive any objection to such venue.

           

          Notwithstanding
            the single execution of this Note by the
            undersigned President of each of the corporate Borrowers and the manager
            of the
            limited liability companies Borrower, as applicable, each of the Borrowers
            is
            jointly and severally bound by the terms of this Note.

           

          UNIT
            CORPORATION, a Delaware corporation,

          SUPERIOR
            PIPELINE COMPANY, L.L.C.,

          an
            Oklahoma limited liability company,

          UNIT
            PETROLEUM COMPANY, an Oklahoma

          corporation,

          UNIT
            DRILLING COMPANY, an Oklahoma

          corporation,
            and

          UNIT
            TEXAS DRILLING, L.L.C., an Oklahoma

          limited
            liability company

           

          By_____________________________________

           

          Larry
            D. Pinkston, President of each of

          UNIT
            CORPORATION,

          UNIT
            PETROLEUM COMPANY,

          UNIT
            DRILLING COMPANY, and

          as
            Manager of UNIT TEXAS DRILLING,

          L.L.C.,
            and Chairman of SUPERIOR

          PIPELINE
            COMPANY, L.L.C.

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          EXHIBIT
            B

          COMPLIANCE
            CERTIFICATE

           

          Bank
            of Oklahoma, National Association, as

          Administrative
            Agent

          Bank
            of Oklahoma Tower - 8th Floor/Energy Dept.

          One
            Williams Center

          Tulsa,
            Oklahoma 74192

          

          This
            Compliance Certificate is delivered pursuant to Section
            6.1(iii) of that certain First Amended and Restated Senior Credit Agreement,
            dated as of May 24, 2007 (as amended, modified, supplemented or restated
            from
            time to time, the "Credit Agreement"), by and among Unit Corporation,
            a Delaware
            corporation ("Unit") ("Unit" and the subsidiaries thereof signatory parties
            to
            the Credit Agreement, as borrowers, collectively the "Borrowers"), the
            Lenders
            (as therein defined), and Bank of Oklahoma, National Association, as
            Administrative Agent for the Lenders. Capitalized terms used herein and
            not
            otherwise defined have the respective meanings assigned to them in the
            Credit
            Agreement. 

           

          As
            used in this Compliance Certificate (including the Schedules
            attached hereto), "Quarterly Calculation Date" means the last day of
            the fiscal
            quarter ending ___________, 200_.

           

          The
            undersigned hereby certifies, represents and warrants as
            follows:

           

          1. The
            undersigned is the chief financial officer of Unit and
            as such he or she is authorized to execute and deliver this Compliance
            Certificate on behalf of the Borrowers and their Subsidiaries (collectively,
            the
            "Credit Parties").

           

          2. The
            undersigned has reviewed the activities of the Credit
            Parties with a view to determining whether the Credit Parties have fulfilled
            their respective obligations under the Loan Documents.

           

          3. Except
            as set forth on Schedule I attached hereto, to the
            best knowledge of the undersigned, after due inquiry:

           

          (a)
 each
            of the Credit Parties has complied with and is in
            compliance with all of the terms and provisions of each of the Loan Documents
            to
            which it is a party;

           

          (b)
 all
            representations and warranties made by the Borrowers
            in the Credit Agreement are true and correct in all material respects
            as of the
            date hereof (other than representations and warranties which refer solely
            to an
            earlier specified date); and

           

          (c) no
            Default has occurred and is continuing under the
            Credit Agreement.

           

          4. As
            of the Quarterly Calculation Date, the Borrowers were
            in compliance with the financial covenants set forth in Sections 8.1,
            8.2 and
            8.3 of the Credit Agreement, as demonstrated by the computations set
            forth in
            Schedule II attached hereto, calculated in accordance with GAAP to the
            extent
            applicable.

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          5. Schedule
            III attached hereto contains a complete and
            accurate list of all Material Subsidiaries of the Borrowers. The Borrowers
            have
            complied with Section 9.2 of the Credit Agreement by causing each of
            the
            Material Subsidiaries to become a party to the Subsidiary Guaranty.

           

          IN
            WITNESS WHEREOF, I have executed this Certificate this ______
            day of ___________, 200_.

           

           

                                     _______________________________________

                                     ________________________(name)

            
Chief
            Financial Officer

            
Unit
            Corporation

           

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          

          SCHEDULE
            I

          TO
            COMPLIANCE CERTIFICATE

           

          (Disclosure
            of Defaults and Non-Compliance)

          

           

          A. Nature
            of Default or terms of Loan Documents that have not
            been complied with in all material respects:

           

          

           

          

           

          

           

          B. Steps
            being taken to correct such Default or
            noncompliance:

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          SCHEDULE
            II

          TO
            COMPLIANCE CERTIFICATE

           

          (Financial
            Covenant Calculations)

          

          1. Calculation
            of Current Ratio
            (Section 8.1)

          (To
            be calculated on a consolidated basis for Unit as of the
            Quarterly Calculation Date)

          

          
            	
                           
Current
                      Assets
                      (including Available

                  	
                    $_______________________

                  
	
                           
Aggregate
                      Commitment)

                  	 
	
                           
Divided
                      by:
                      Current Liabilities

                  	
                    ÷_______________________

                  
	
                           

                           
Consolidated
                      Current
                      Ratio:

                  	
                     

                    =_______________________

                    (must
                      be equal to or greater

                    than
                      1.0 to 1.0)

                  

          

           

          2. Consolidated
            Long Term
            Debt-to-EBITDA Ratio (Section 8.2)

          (To
            be calculated on a consolidated basis for Unit as of the
            Quarterly Calculation Date)

          

          
            	
                           
A. Consolidated
                      Long Term Debt

                  	
                    $______________________

                  
	 	 
	
                           
B. Consolidated
                      EBITDA

                  	
                    $______________________

                  
	 	 
	
                           
C. Consolidated
                      Long Term Debt to 

                                
                      EBITDA Ratio (Ratio of Item A to 

                                
                      Item B)

                  	
                    ____________
                      to 1.00

                    (must
                      not be greater than 3.50 to
                      1.00)

                  

          

          

          3. Calculation
            of Consolidated Minimum
            Net Worth (Section 8.3)

          (To
            be calculated for Unit as of the Quarterly Calculation
            Date)

          

          
            	
                           
Consolidated
                      Net
                      Worth

                  	
                    $______________________

                    (must
                      be equal to or greater 

                    than
                      $900,000,000)

                  

          

          

          

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

           

          SCHEDULE
            III

           

          TO
            COMPLIANCE CERTIFICATE

           

          (Material
            Subsidiaries)

          

          As
            of the Quarterly Calculation Date, the following constituted
            all of the Material Subsidiaries of the Borrowers:

           

          

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          EXHIBIT
            C

          FORM
            OF ASSIGNMENT

           

          This
            Assignment and Assumption (the "Assignment and Assumption")
            is dated as of the Effective Date set forth below and is entered into
            by and
            between [Insert name of Assignor] (the "Assignor") and [Insert name
            of Assignee] (the "Assignee"). Capitalized terms used but not defined
            herein shall have the meanings given to them in the First Amended and
            Restated
            Senior Credit Agreement dated as of May 24, 2007 (as amended, restated
            or
            supplemented from time to time, the "Credit Agreement"), receipt of a
            copy of
            which is hereby acknowledged by the Assignee. The Terms and Conditions
            set forth
            in Annex 1 attached hereto are hereby agreed to and incorporated herein
            by
            reference and made a part of this Assignment and Assumption as if set
            forth
            herein in full.

           

          The
            Assignor hereby sells and assigns to the Assignee, and the
            Assignee hereby purchases and assumes from the Assignor, an interest
            in and to
            the Assignor's rights and obligations under the Credit Agreement and
            the other
            Loan Documents, such that after giving effect to such assignment the
            Assignee
            shall have purchased pursuant to this Assignment Agreement the percentage
            interest specified in Item 6(a) below of all outstanding rights and obligations
            under the Credit Agreement and the other Loan Documents relating to the
            credit
            facility listed in Item 5 below (the "Assigned Interest"). The aggregate
            Commitment (including LC Obligations, if the applicable Commitment has
            been
            terminated) purchased by the Assignee hereunder is set forth in Item
            6
            below.

           

          In
            consideration for the sale and assignment of Commitments
            hereunder, the Assignee shall pay the Assignor, on the Effective Date,
            the
            amount agreed to by the Assignor and the Assignee. On and after the Effective
            Date, the Assignee shall be entitled to receive all payments of principal,
            interest, reimbursement obligations and fees with respect to the interest
            assigned hereby. The Assignee will promptly remit to the Assignor any
            interest
            on Loans and fees received from the Administrative Agent which relate
            to the
            portion of the Loans or LC Obligations assigned to the Assignee hereunder
            and
            not previously paid by the Assignee to the Assignor. In the event that
            either
            party hereto receives any payment to which the other party hereto is
            entitled
            under this Assignment Agreement, then the party receiving such amount
            shall
            promptly remit it to the other party hereto. 

           

          1. Assignor: __________________________

           

          2. Assignee: __________________________
            [and is an
            Affiliate of ___________________________[identify
            Lender]1  

           

          3. Borrowers: Unit
            Corporation, Superior Pipeline
            Company, L.L.C., Unit Drilling Company, Unit Petroleum Company, and Unit
            Texas
            Drilling, L.L.C.

           

          4. Administrative
            Agent:  Bank of Oklahoma, National
            Association, as Administrative Agent under the Credit Agreement.

           

          _____________________

          1.
            Select as applicable

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          5. Credit
            Agreement: The $400,000,000 First Amended and
            Restated Senior Credit Agreement dated as of May 24 , 2007 among Borrowers,
            Bank
            of Oklahoma, National Association, as Administrative Agent, and the Lenders
            signatory parties thereto.

           

          6. Assigned
            Interest: ____________________

           

          
            	
                                   
                      a. Assignee's Pro Rata Share of credit facility 

                         purchased
                      under the Assignment Agreement

                  	
                    __________%

                  
	
                                   
                      b. Amount of credit facility purchased under the

                        
Assignment
                      Agreement

                  	
                    $___________

                  
	
                                   
                      c. Assignee's Loans (or LC Obligations with respect to 

                        
terminated
                      Commitments) purchased hereunder:

                  	
                    $___________

                  

          

           

          7. Trade
            Date: _________________________________
2 

           

          8. Payment
            Instructions to Assignor:

           

          Effective
            Date: ________________, 200__ [TO BE INSERTED BY
            ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION
            OF
            TRANSFER BY THE ADMINISTRATIVE AGENT.]

           

           

           

           

           

          ______________________

          2.
            Insert if satisfaction of minimum amounts is to be determined
            as of the Trade Date.

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          The
            terms set forth in this Assignment and Assumption are hereby
            agreed to:

           

          ASSIGNOR

           

          [name]

           

          BY:________________________________

          Title:_______________________________

           

          

           

          ASSIGNEE

           

          [name]

           

          BY:________________________________

          Title:_______________________________

           

          

           

          Consented
            and Accepted:

           

          BANK
            OF OKLAHOMA, National Association,

          as
            Administrative Agent for the Lenders

           

          By:_____________________________

          Name:
            __________________________

          Title:
            ___________________________

           

          

           

          

           

          UNIT
            CORPORATION

           

          

           

          By:______________________________

          Name:
            ___________________________

          Title:
            ____________________________

           

          

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

           

          ANNEX
            1

          TERMS
            AND CONDITIONS FOR

          ASSIGNMENT
            AND ASSUMPTION

           

          1. Representations
            and Warranties.

           

          1.1 Assignor.
            The Assignor represents and warrants
            that (i) it is the legal and beneficial owner of the Assigned Interest,
            (ii) the
            Assigned Interest is free and clear of any lien, encumbrance or other
            adverse
            claim and (iii) it has full power and authority, and has taken all action
            necessary, to execute and deliver this Assignment and Assumption and
            to
            consummate the transactions contemplated hereby. Neither the Assignor
            nor any of
            its officers, directors, employees, agents or attorneys shall be responsible
            for
            (i) any statements, warranties or representations made in or in connection
            with
            the Credit Agreement or any other Loan Document, (ii) the execution,
            legality,
            validity, enforceability, genuineness, sufficiency, perfection, priority,
            collectibility, or value of the Loan Documents or any collateral thereunder,
            (iii) the financial condition of the Borrowers, any of their Subsidiaries
            or
            Affiliates or any other Person obligated in respect of any Loan Document,
            (iv)
            the performance or observance by the Borrowers, any of their Subsidiaries
            or
            Affiliates or any other Person of any of their respective obligations
            under any
            Loan Document, (v) inspecting any of the property, books or records of
            the
            Borrowers, or Subsidiary Guarantor, or (vi) any mistake, error of judgment,
            or
            action taken or omitted to be taken in connection with the Loans or the
            Loan
            Documents.

           

          1.2 Assignee.
            The Assignee (a) represents and warrants
            that (i) it has full power and authority, and has taken all action necessary,
            to
            execute and deliver this Assignment and Assumption and to consummate
            the
            transactions contemplated hereby and to become a Lender under the Credit
            Agreement, (ii) from and after the Effective Date, it shall be bound
            by the
            provisions of the Credit Agreement as a Lender thereunder and, to the
            extent of
            the Assigned Interest, shall have the obligations of a Lender thereunder,
            (iii)
            agrees that its payment instructions and notice instructions are as set
            forth in
            Item 8 above of this Assignment and Assumption, (iv) confirms that none
            of the
            funds, monies, assets or other consideration being used to make the purchase
            and
            assumption hereunder are "plan assets" as defined under ERISA and that
            its
            rights, benefits and interests in and under the Loan Documents will not
            be "plan
            assets" under ERISA, (v) agrees to indemnify and hold the Assignor harmless
            against all losses, costs and expenses (including, without limitation,
            reasonable attorneys' fees) and liabilities incurred by the Assignor
            in
            connection with or arising in any manner from the Assignee's non- performance
            of
            the obligations assumed under this Assignment and Assumption, (vi) it
            has
            received a copy of the Credit Agreement, together with copies of financial
            statements and such other documents and information as it has deemed
            appropriate
            to make its own credit analysis and decision to enter into this Assignment
            and
            Assumption and to purchase the Assigned Interest on the basis of which
            it has
            made such analysis and decision independently and without reliance on
            the
            Administrative Agent or any other Lender, and (vii) attached as Schedule
            1 to
            this Assignment and Assumption is any documentation required to be delivered
            by
            the Assignee with respect to its tax status pursuant to the terms of
            the Credit
            Agreement, exemption from backup withholding (IRS From W-9 or successor
            form) on
            payments pursuant to the Credit 

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              
Agreement or and other Loan Document described or defined
              therein or as a Lender that is not a United States person under Section
              7701(a)(30) of the Internal Revenue Code for United States federal
              income tax
              purposes, duly completed and executed by the Assignee and (b) agrees
              that (i) it
              will, independently and without reliance on the Administrative Agent,
              the
              Assignor or any other Lender, and based on such documents and information
              as it
              shall deem appropriate at the time, continue to make its own credit
              decisions in
              taking or not taking action under the Loan Documents, and (ii) it will
              perform
              in accordance with their terms all of the obligations which by the
              terms of the
              Loan Documents are required to be performed by it as a Lender.

          

           

          2.
 Payments.
            The Assignee shall pay the Assignor, on
            the Effective Date, the amount agreed to by the Assignor and the Assignee.
            From
            and after the Effective Date, the Administrative Agent shall make all
            payments
            in respect of the Assigned Interest (including payments of principal,
            interest,
            fees and other amounts) to the Assignor for amounts which have accrued
            to but
            excluding the Effective Date and to the Assignee for amounts which have
            accrued
            from and after the Effective Date. 

           

          3.
 General
            Provisions. This Assignment and Assumption
            shall be binding upon, and inure to the benefit of, the parties hereto
            and their
            respective successors and assigns. This Assignment and Assumption may
            be
            executed in any number of counterparts, which together shall constitute
            one
            instrument. Delivery of an executed counterpart of a signature page of
            this
            Assignment and Assumption by telecopy shall be effective as delivery
            of a
            manually executed counterpart of this Assignment and Assumption. This
            Assignment
            and Assumption shall be governed by, and construed in accordance with,
            the laws
            of the State of Oklahoma.

           

          

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          SCHEDULE
            I

           

          (Lender
            Tax Status Information)

          

          

          

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          

          EXHIBIT
            D

           

          FORM
            OF AMENDMENT FOR AN INCREASED OR NEW
            COMMITMENT

           

          This
            AMENDMENT is made as of the ___ day of __________, 200__, by
            and among Unit Corporation, a Delaware corporation (as agent for the
            "Borrowers"
            signatory parties to the Credit Agreement described and defined below,
            referred
            to herein as "Unit"), Bank of Oklahoma, National Association, as administrative
            agent for the Lenders signatory parties to the Credit Agreement (the
            "Administrative Agent"), and _________________________ (the "Supplemental
            Lender").

           

          The
            Borrowers (including Unit), the Administrative Agent and
            certain other Lenders, as described therein, are parties to a First Amended
            and
            Restated Senior Credit Agreement dated as of May 24, 2007 (as amended,
            modified,
            supplemented, or restated, collectively the "Credit Agreement"). All
            terms used
            herein and not otherwise defined shall have the same meaning given to
            them in
            the Credit Agreement. 

           

          Pursuant
            to Section 14.6 of the Credit Agreement, Unit, on behalf
            of the Borrowers, has the right to obtain additional Commitments upon
            satisfaction of certain conditions. This Amendment requires only the
            signature
            of Unit, the Administrative Agent and the Supplemental Lender so long
            as the
            aggregate amount of the commitments is not increased above the Maximum
            Credit
            Amount specified in the Credit Agreement.

           

          The
            Supplemental Lender is either (a) an existing Lender which is
            increasing its Commitment or (b) a new Lender which is a lending institution
            whose identity the Administrative Agent will approve by its signature
            below.

           

          In
            consideration of the foregoing, such Supplemental Lender, from
            and after the date hereof shall have a Commitment of $_______________
            and if it
            is a new Lender, the Supplemental Lender hereby assumes all of the rights
            and
            obligations of a Lender under the Credit Agreement.

           

          The
            Borrowers have executed and delivered to the Supplemental
            Lender as of the date hereof, if requested by the Supplemental Lender,
            a new or
            amended and restated Note in the form attached to the Credit Agreement
            as
            Exhibit A to evidence the new or increased Commitment of the Supplemental
            Lender
            and the Administrative Agent is distribution a revised Lenders Schedule
            to the
            Lenders in the form annexed hereto.

           

          IN
            WITNESS WHEREOF, the Administrative Agent, the Borrower and the
            Supplemental Lender have executed this Amendment as of the date shown
            above.

           

          UNIT
            CORPORATION

           

          By:_____________________________________

                     
            __________________________(name)

                     
            __________________________(title)

           

          

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

           

          [SUPPLEMENT
            LENDER]

           

          By:_____________________________________

          Name:
            __________________________________

          Title:
            _______________________________

           

          

           

          BANK
            OF OKLAHOMA, NATIONAL ASSOCIATION, Administrative Agent for the
            Lenders

           

          

           

          By:_____________________________________

          Name:
            __________________________________

          Title:
            _______________________________

           

          

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          EXHIBIT
            E

           

          SUBSIDIARY GUARANTY

           

          THIS
            GUARANTY AGREEMENT ("Guaranty") is made and entered into
            effective as of ________, 20___, by the undersigned guarantor (the "Guarantor"),
            in favor of (i) the Lenders from time to time parties to the Credit Agreement
            described below and (ii) Bank of Oklahoma, National Association, as
            Administrative Agent under the Credit Agreement (defined below).

           

          RECITALS

           

          A. Unit
            Corporation, a Delaware corporation, Superior
            Pipeline Company, L.L.C., an Oklahoma limited liability company, Unit
            Drilling
            Company, an Oklahoma corporation, Unit Petroleum Company, Inc., an Oklahoma
            corporation, and Unit Texas Drilling, L.L.C., an Oklahoma limited liability
            company (collectively, the "Borrowers"), the Lenders therein named, and
            Bank of
            Oklahoma, National Association, as Administrative Agent for the Lenders,
            are
            parties to that certain First Amended and Restated Senior Credit Agreement
            dated
            as of May 24, 2007 (as amended, modified, supplemented, restated and
            in effect
            from time to time, the "Credit Agreement"). 

           

          B. Capitalized
            terms used herein and not otherwise defined
            herein have the respective meanings assigned to them in the Credit
            Agreement.

           

          C. Pursuant
            to the Credit Agreement, the Lenders have
            severally agreed to establish in favor of the Borrowers certain Commitments
            for
            Advances and LC Obligations in the Aggregate Commitment Amounts, subject
            to the
            Maximum Credit Amount.

           

          D. The
            Guarantor is a Material Subsidiary and will receive
            substantial and valuable consideration and benefit from the Commitments
            and the
            Loans advanced and the LCs issued from time to time by the Lenders and
            the LC
            Issuer, respectively, to the Borrowers pursuant to the Credit Agreement.

           

          D. It
            is a condition precedent to the closing of the Credit
            Agreement and to each Extension of Credit thereunder that the Guarantor
            executes
            and delivers this Guaranty whereby the Guarantor shall absolutely and
            unconditionally guarantee the prompt and punctual payment when due of
            all of the
            Guaranteed Obligations (as hereinafter defined).

           

          NOW,
            THEREFORE, in consideration of the credit to be extended
            pursuant to the Credit Agreement, and as a material inducement therefor,
            and for
            other good and valuable consideration, the receipt and sufficiency of
            which are
            hereby acknowledged, the Guarantor hereby covenants and agrees as follows:

           

          SECTION
            1. Guaranty. Subject to Section 9 hereof, the
            Guarantor hereby guarantees to the Lenders and the Administrative Agent,
            absolutely, unconditionally and irrevocably, and without limitation as
            to
            amount, the prompt performance and payment when due (whether at a stated
            maturity or earlier by reason of acceleration or otherwise) of all Loans,
            LC
            Obligations, Reimbursement Obligations and all other Obligations and
            Outstanding
            Credit Exposure (as each such term is defined in the Credit Agreement),
            including, without limitation, principal, interest and fees, and all
            other

           

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              
liabilities and obligations
              now or hereafter owing by the Borrowers to the Lenders under the Credit
              Agreement, the Notes and other relevant Loan Documents, including,
              without
              limitation, indemnities, reasonable attorneys' fees, filing and recording
              costs,
              out-of-pocket expenses, collection costs and other amounts payable
              under the
              Loan Documents, including any such liabilities or obligations incurred
              or
              accrued during the pendency of any bankruptcy, insolvency, receivership
              or other
              similar proceeding, whether or not allowed or allowable in such proceeding
              (all
              of the foregoing liabilities and obligations being hereinafter collectively
              referred to as the "Guaranteed Obligations"). This Guaranty is a guaranty
              of
              payment and not just of collectibility and is in no way conditioned
              or
              contingent upon any attempt to collect from the Borrowers or upon any
              other
              event, contingency or circumstance whatsoever. If for any reason whatsoever
              the
              Borrowers shall fail or be unable duly, punctually and fully to pay
              such amounts
              as and when the same shall become due and payable, the Guarantor, without
              demand, presentment, protest or notice of any kind, will forthwith
              pay or cause
              to be paid such amounts to the Administrative Agent under the terms
              of the
              Credit Agreement, any Note or other relevant Loan Document, in lawful
              money of
              the United States, at the place specified in the Credit Agreement,
              or perform or
              comply with the same or cause the same to be performed or complied
              with,
              together with interest (to the extent provided for under the Credit
              Agreement)
              on any amount due and owing from the Borrowers. The Guarantor, promptly
              after
              demand, will pay to the Administrative Agent the reasonable costs and
              expenses
              of collecting such amounts or otherwise enforcing this Guaranty, including,
              without limitation, the reasonable fees and expenses of counsel. Notwithstanding
              the foregoing, the right of recovery against the Guarantor under this
              Guaranty
              is limited to the extent it is judicially determined with respect to
              any
              Guarantor that entering into this Guaranty would violate Section 548
              of the
              United States Bankruptcy Code or any comparable provisions of any state
              law, in
              which case such Guarantor shall be liable under this Guaranty only
              for amounts
              aggregating up to the largest amount that would not render such Guarantor's
              obligations hereunder subject to avoidance under Section 548 of the
              United
              States Bankruptcy Code or any comparable provisions of any state
              law.

          

           

          SECTION
            2. Guarantor's Obligations Unconditional. The
            obligations of the Guarantor under this Guaranty shall be primary, absolute
            and
            unconditional obligations of the Guarantor, shall not be subject to any
            counterclaim, set-off, deduction, diminution, abatement, recoupment,
            suspension,
            deferment, reduction or defense based upon any claim the Guarantor or
            any other
            Person may have against the Borrowers or any other Person, and to the
            full
            extent permitted by applicable law shall remain in full force and effect
            without
            regard to, and shall not be released, discharged or in any way affected
            by, any
            circumstance or condition whatsoever (whether or not the Guarantor or
            the
            Borrowers shall have any knowledge or notice thereof), including:

           

          (a) any
            termination, amendment or modification of or deletion
            from or addition or supplement to or other change in the Credit Agreement,
            the
            Loan Documents or any other instrument or agreement applicable to any
            of the
            parties to any of the Loan Documents;

           

          (b) any
            furnishing or acceptance of any security, or any
            release of any security, for the Guaranteed Obligations, or the failure
            of any
            security or the failure of any Person to perfect any interest in any
            collateral;

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          (c) any
            failure, omission or delay on the part of the
            Borrowers to conform or comply with any term of any of the Loan Documents
            or any
            other instrument or agreement referred to in subsection (a) above, including,
            without limitation, failure to give notice to the Guarantor of the occurrence
            of
            a "Default" or an "Event of Default" under any Loan Document;

           

          (d) any
            waiver of the payment, performance or observance of
            any of the obligations, conditions, covenants or agreements contained
            in any
            Loan Document, or any other waiver, consent, extension, indulgence, compromise,
            settlement, release or other action or inaction under or in respect of
            any of
            the Loan Documents or any other instrument or agreement referred to in
            subsection (a) above or any obligation or liability of the Borrowers,
            or any
            exercise or non-exercise of any right, remedy, power or privilege under
            or in
            respect of any such instrument or agreement or any such obligation or
            liability;

           

          (e) any
            failure, omission or delay on the part of any of the
            Administrative Agent or the Lenders to enforce, assert or exercise any
            right,
            power or remedy conferred on the Administrative Agent or the Lenders
            in this
            Guaranty, or any such failure, omission or delay on the part of the
            Administrative Agent or the Lenders in connection with any Loan Document,
            or any
            other action on the part of the Administrative Agent or the Lenders;

           

          (f) any
            voluntary or involuntary bankruptcy, insolvency,
            reorganization, arrangement, readjustment, assignment for the benefit
            of
            creditors, composition, receivership, conservatorship, custodianship,
            liquidation, marshaling of assets and liabilities or similar proceedings
            with
            respect to the Borrowers, any Guarantor or any other Person or any of
            their
            respective properties or creditors, or any action taken by any trustee
            or
            receiver or by any court in any such proceeding;

           

          (g) any
            discharge, termination, cancellation, frustration,
            irregularity, invalidity or unenforceability, in whole or in part, of
            any of the
            Loan Documents or any other agreement or instrument referred to in subsection
            (a) above or any term hereof;

           

          (h) any
            merger or consolidation of the Borrowers or any
            Guarantor into or with any other corporation, or any sale, lease or transfer
            of
            any of the assets of the Borrowers or any Guarantor to any other Person;

           

          (i) any
            change in the ownership of any shares of capital
            stock of the Borrowers or any change in the corporate relationship between
            the
            Borrowers and the Guarantor, or any termination of such relationship;

           

          (j) any
            release or discharge, by operation of law, of the
            Guarantor from the performance or observance of any obligation, covenant
            or
            agreement contained in this Guaranty; or

           

          (k) any
            other occurrence, circumstance, happening or event
            whatsoever, whether similar or dissimilar to the foregoing, whether foreseen
            or
            unforeseen, and any other circumstance which might otherwise 

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

            constitute
              a
              legal or equitable defense or discharge of the liabilities of a guarantor
              or
              surety or which might otherwise limit recourse against the
              Guarantor.

          

           

          SECTION
            3. Full Recourse Obligations. The obligations of
            the Guarantor set forth herein constitute the full recourse obligations
            of the
            Guarantor enforceable against them to the full extent of all their assets
            and
            properties.

           

          SECTION
            4. Waiver. The Guarantor unconditionally waives, to
            the extent permitted by applicable law, (a) notice of any of the matters
            referred to in Section 2 hereof, (b) notice to the Guarantor of the incurrence
            of any of the Guaranteed Obligations, notice to the Guarantor or the
            Borrowers
            of any breach or default by the Borrowers or the Guarantor with respect
            to any
            of the Guaranteed Obligations or any other notice that may be required,
            by
            statute, rule of law or otherwise, to preserve any rights of the Administrative
            Agent or the Lenders against the Guarantor, (c) presentment to or demand
            of
            payment from the Borrowers or the Guarantors with respect to any amount
            due
            under any Loan Document or protest for nonpayment or dishonor, (d) any
            right to
            the enforcement, assertion or exercise by the Administrative Agent or
            the
            Lenders of any right, power, privilege or remedy conferred in the Credit
            Agreement or any other Loan Document or otherwise, (e) any requirement
            of
            diligence on the part of any of the Administrative Agent or the Lenders,
            (f) any
            requirement to exhaust any remedies or to mitigate the damages resulting
            from
            any default under any Loan Document, (g) any notice of any sale, transfer
            or
            other disposition by any of the Lenders of any right, title to or interest
            in
            the Credit Agreement or in any other Loan Document, and (h) any other
            circumstance whatsoever which might otherwise constitute a legal or equitable
            discharge, release or defense of a guarantor or surety or which might
            otherwise
            limit recourse against the Guarantor.

           

          SECTION
            5. Subrogation, Contribution, Reimbursement or
            Indemnity. Until one year and one day after all Guaranteed Obligations have
            been indefeasibly paid in full, the Guarantor agrees not to take any
            action
            pursuant to any rights which may have arisen in connection with this
            Guaranty to
            be subrogated to any of the rights (whether contractual, under the United
            States
            Bankruptcy Code, as amended, including Section 509 thereof, under common
            law or
            otherwise) of any of the Lenders against the Borrowers or against any
            collateral
            security or guaranty or right of offset held by the Administrative Agent
            or the
            Lenders for the payment of the Guaranteed Obligations. Until one year
            and one
            day after all Guaranteed Obligations have been indefeasibly paid in full,
            the
            Guarantor agrees not to take any action pursuant to any contractual,
            common law,
            statutory or other rights of reimbursement, contribution, exoneration
            or
            indemnity (or any similar right) from or against the Borrowers which
            may have
            arisen in connection with this Guaranty. So long as the Guaranteed Obligations
            remain, if any amount shall be paid by or on behalf of the Borrowers
            to any
            Guarantor on account of any of the rights waived in this Section 5, such
            amount
            shall be held by such Guarantor in trust, segregated from other funds
            of such
            Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned
            over
            to the Administrative Agent (duly endorsed by such Guarantor to the
            Administrative Agent, if required), to be applied against the Guaranteed
            Obligations, whether matured or unmatured, in such order as the Administrative
            Agent may determine. The provisions of this Section 5 shall survive the
            term of
            this Guaranty and the payment in full of the Guaranteed Obligations.

           

          SECTION
            6. Effect of Bankruptcy or Insolvency Proceedings.
            This Guaranty shall continue to be effective or be automatically reinstated,
            as
            the case may be, if at any time payment, in whole or in part, of any
            of the sums
            due to any 

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              
of the Lenders pursuant to
              the terms of the Credit Agreement or any other Loan Document is rescinded
              or
              must otherwise be restored or returned by such Bank upon the insolvency,
              bankruptcy, dissolution, liquidation or reorganization of the Borrowers
              or any
              other Person, or upon or as a result of the appointment of a custodian,
              receiver, trustee or other officer with similar powers with respect
              to the
              Borrowers or other Person or any substantial part of its property,
              or otherwise,
              all as though such payment had not been made. If an event permitting
              the
              acceleration of the maturity of the principal amount of the Notes shall
              at any
              time have occurred and be continuing, and such acceleration shall at
              such time
              be prevented by reason of the pendency against the Borrowers or any
              other Person
              of a case or proceeding under a bankruptcy or insolvency law, the Guarantor
              agrees that, for purposes of this Guaranty and its obligations hereunder,
              the
              maturity of the principal amount of the Notes and all other Guaranteed
              Obligations shall be deemed to have been accelerated with the same
              effect as if
              the Lenders had accelerated the same in accordance with the terms of
              the Credit
              Agreement or other applicable Loan Document, and the Guarantor shall
              forthwith
              pay such principal amount and interest thereon and any other amounts
              guaranteed
              hereunder without further notice or demand.

          

           

          SECTION
            7. Termination. This Guaranty shall terminate when,
            and only when, all of the Guaranteed Obligations have been paid and performed
            in
            full, all in accordance with the provisions of the Credit Agreement.

           

          SECTION
            8.  Representations and Warranties. Guarantor
            represents and warrants that:

           

          (a) It
            (i) is duly organized, validly existing in good
            standing under the laws of the jurisdiction of its incorporation or
            organization, (ii) has the corporate or other necessary organizational
            power and
            authority, and the legal right to own and operate its Properties, to
            lease the
            Properties it operates as lessee and to conduct the business in which
            it is
            currently engaged, (iii) is duly qualified as a foreign entity and in
            good
            standing under the laws of each jurisdiction where its ownership, lease
            or
            operation of Property or the conduct of its business requires such
            qualification, other than in such jurisdictions where the failure to
            be so
            qualified and in good standing has not had and could not have a Material
            Adverse
            Effect, and (iv) is in compliance with all applicable law, except to
            the extent
            that the failure to comply therewith has not had and could not be reasonably
            expected to have a Material Adverse Effect.

           

          (b) It
            has the power and authority and legal right to execute
            and deliver this Guaranty and to perform its obligations hereunder. The
            execution and delivery by it of this Guaranty and the performance of
            its
            obligations hereunder have been duly authorized by proper proceedings.
            No
            consent or authorization of, filing with, notice to or other act by or
            in
            respect of, any Governmental Authority or other Person is required in
            connection
            with its execution and delivery of this Guaranty and performance of its
            obligations hereunder (other than those which have been obtained).

           

          (c) This
            Guaranty constitutes a legal, valid and binding
            obligation of the Guarantor, enforceable against it in accordance with
            its
            terms, except as enforceability may be limited by applicable bankruptcy,

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              
insolvency, reorganization, moratorium or similar laws
              affecting the enforcement of creditors' rights generally and by general
              equitable principles (whether enforcement is sought by proceedings
              in equity or
              at law).

          

           

          (d) The
            execution, delivery and performance of this Guaranty
            will not violate any applicable law or any material agreement, instrument
            or
            undertaking to which any Guarantor is a party or by which it or any of
            its
            Property is bound (collectively, a "Contractual Obligation") of the Guarantor
            (except those as to which waivers or consents have been obtained and
            those which
            could not reasonably be expected to have a Material Adverse Effect),
            and will
            not result in, or require, the creation or imposition of any Lien on
            any of its
            Properties or revenues pursuant to any applicable law or Contractual
            Obligation.

           

          (e) It
            has a substantial economic interest in the Borrowers
            and expects to derive benefits from transactions resulting in the creation
            of
            the Guaranteed Obligations hereby. The Administrative Agent and the Lenders
            may
            rely conclusively on a continuing warranty hereby made, that each Guarantor
            continues to be benefited by the Lenders' extension of credit to the
            Borrowers,
            and neither the Administrative Agent nor the Lenders shall have any duty
            to
            inquire into or confirm the receipt of any such benefits, and this Guaranty
            shall be effective and enforceable by the Administrative Agent and the
            Lenders
            without regard to the receipt, nature or value of any such benefits.

           

          (f) It
            has received a copy of the Credit Agreement.

           

          SECTION
            9. Limitations on Obligations. 

           

          (a)
 The
            provisions of this Guaranty are severable, and in
            any action or proceeding involving any state corporate law, or any state,
            federal or foreign bankruptcy, insolvency, reorganization or other law
            affecting
            the rights of creditors generally, if the obligations of any Guarantor
            under
            this Guaranty would otherwise be held or determined to be avoidable,
            invalid or
            unenforceable on account of the amount of such Guarantor's liability
            under this
            Guaranty, then, notwithstanding any other provision of this Guaranty
            to the
            contrary, the amount of such liability shall, without any further action
            by such
            Guarantor, the Administrative Agent or the Lenders, be automatically
            limited and
            reduced to the highest amount that is valid and enforceable as determined
            in
            such action or proceeding (such highest amount determined hereunder being
            the
            relevant Guarantor's "Maximum Liability"). This Section 9(a) with respect
            to the
            Maximum Liability of any Guarantor is intended solely to preserve the
            rights of
            the Administrative Agent and the Lenders to the maximum extent not subject
            to
            avoidance under applicable law, and neither any Guarantor nor any other
            Person
            or entity shall have any right or claim under this Section 9(a) with
            respect to
            the Maximum Liability, except to the extent necessary so that the obligations
            of
            any Guarantor hereunder shall not be rendered voidable under applicable
            law.

           

          (b) The
            Guarantor agrees that the Guaranteed Obligations may
            at any time and from time to time exceed the Maximum Liability of Guarantor,
            and
            may exceed the aggregate Maximum Liability of any other guarantors, without
            impairing this Guaranty or affecting the rights and remedies of the
            Administrative Agent or 

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              
the Lenders. Nothing in this Section 9(b) shall be construed
              to increase any Guarantor's obligations hereunder beyond its Maximum
              Liability.

          

           

          (c) In
            the event any Guarantor (a "Paying Guarantor") shall
            make any payment or payments under this Guaranty or shall suffer any
            loss as a
            result of any realization upon any collateral granted by it to secure
            its
            obligations under this Guaranty, any other guarantor (each a "Non-Paying
            Guarantor") shall contribute to such Paying Guarantor an amount equal
            to such
            Non-Paying Guarantor's "Pro Rata Share" of such payment or payments made,
            or
            losses suffered, by such Paying Guarantor. For the purposes hereof, each
            Non-Paying Guarantor's "Pro Rata Share" with respect to any such payment
            or loss
            by a Paying Guarantor shall be determined as of the date on which such
            payment
            or loss was made by reference to the ratio of (i) such Non-Paying Guarantor's
            Maximum Liability as of such date (without giving effect to any right
            to
            receive, or obligation to make, any contribution hereunder) or, if such
            Non-Paying Guarantor's Maximum Liability has not been determined, the
            aggregate
            amount of all monies received by such Non-Paying Guarantor from the Borrowers
            after the date hereof (whether by loan, capital infusion or by other
            means) to
            (ii) the aggregate Maximum Liability of all guarantors hereunder (including
            such
            Paying Guarantor) as of such date (without giving effect to any right
            to
            receive, or obligation to make, any contribution hereunder), or to the
            extent
            that a Maximum Liability has not been determined for any guarantors,
            the
            aggregate amount of all monies received by such guarantors from the Borrowers
            after the date hereof (whether by loan, capital infusion or by other
            means).
            Nothing in this Section 9(c) shall affect any Guarantor's or any other
            guarantor's several liability for the entire amount of the Guaranteed
            Obligations (up to such guarantor's Maximum Liability). Each Guarantor
            covenants
            and agrees that its right to receive any contribution under this Guaranty
            from a
            Non-Paying Guarantor shall be subordinate and junior in right of payment
            to all
            the Guaranteed Obligations. The provisions of this Section 9(c) are for
            the
            benefit of the Administrative Agent, the Lenders and the Guarantor and
            may be
            enforced by any one, or more, or all of them in accordance with the terms
            hereof.

           

          SECTION
            10. Notices. Any notice, demand, request or consent
            required or authorized hereunder shall be served in person or delivered
            by U.S.
            certified mail, return receipt requested, addressed as follows:

           

          
            	
                               
                      If to Guarantor:

                  	
                    c/o
                      Unit Corporation

                    1000
                      Kensington Tower I 

                    Tulsa,
                      Oklahoma 74136

                    Fax:
                      (918) 493-7711

                    Attention:
                      General Counsel

                  
	
                               
                      If to the Lenders or the

                               
                      Administrative Agent:

                  	
                    BANK
                      OF OKLAHOMA, N.A.

                    Bank
                      of Oklahoma Tower

                    One
                      Williams Center

                    Tulsa,
                      Oklahoma 74192

                    Attn:
                      Energy Department - 8th Floor

                    Fax:
                      (918) 588-6880

                  

          

          

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          or
            at such other address as the Guarantor or the Administrative
            Agent shall designate for such purpose in a written notice to the other
            parties.
            Notices served in person shall be effective and deemed given when delivered;
            and
            notices sent by certified mail shall be effective and deemed given three
            (3)
            Business Days after being deposited in the U.S. mail, postage prepaid.

           

          SECTION
            11. Survival. All warranties, representations and
            covenants made by the Guarantor herein or in any certificate or other
            instrument
            delivered by it or on its behalf hereunder shall be considered to have
            been
            relied upon by the Lenders and shall survive the execution and delivery
            of this
            Guaranty, regardless of any investigation made by the Administrative
            Agent or
            any of the Lenders. All statements in any such certificate or other instrument
            shall constitute warranties and representations by the Guarantors
            hereunder.

           

          SECTION
            12. Severability. Any remedy or right hereby
            granted which shall be found to be unenforceable as to any Person or
            under any
            circumstance, for any reason, shall in no way limit or prevent the enforcement
            of such remedy or right as to any other Person or circumstances, nor
            shall such
            unenforceability limit or prevent enforcement of any other remedy or
            right
            hereby granted.

           

          SECTION
            13. Collection Costs. The Guarantor agrees to
            reimburse the Administrative Agent upon demand for all reasonable out
            of pocket
            expenses (including reasonable attorneys' fees and legal expenses) incurred
            by
            the Administrative Agent or the Lenders arising out of or in connection
            with the
            enforcement of the Guaranteed Obligations or arising out of or in connection
            with any failure of the Guarantor to fully and timely perform their obligations
            hereunder.

           

          SECTION
            14. Governing Law. This Guaranty is made under and
            shall be governed by the laws of the State of Oklahoma, without giving
            effect to
            conflict of laws principles thereof.

           

          SECTION
            15. Jurisdiction and Venue. All actions or
            proceedings with respect to this Guaranty may be instituted in any state
            or
            federal court sitting in Tulsa County, Oklahoma, and by execution and
            delivery
            of this Guaranty, the Guarantor irrevocably and unconditionally (i) submits
            to
            the nonexclusive jurisdiction (both subject matter and Person) of each
            such
            court, and (ii) waives (a) any objection that the Guarantors may now
            or
            hereafter have to the laying of venue in any of such courts, and (b)
            any claim
            that any action or proceeding brought in any such court has been brought
            in an
            inconvenient forum.

           

          SECTION
            16. Waiver of Jury Trial.
            The Guarantor, the Administrative Agent and the Lenders (by their acceptance
            hereof) hereby voluntarily, knowingly, irrevocably and unconditionally
            waive any
            right to have a jury participate in resolving any dispute (whether based
            upon
            contract, tort or otherwise) between or among the Borrowers or the Guarantor
            and
            the Administrative Agent or the Lenders arising out of or in any way
            related to
            this Guaranty. This Section 16 is a material inducement to the Lenders
            to
            provide the financing described herein or in the Credit
            Agreement.

           

          SECTION
            17. Additional Guarantors. Pursuant to Section
            9.2 of the Credit Agreement, all future Material Subsidiaries of the
            Borrowers
            shall execute and deliver to the Administrative Agent a Guaranty Joinder
            Agreement, the form of which is attached hereto as Schedule I and made
            a part
            hereof. Upon the execution of a Guaranty Joinder 

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              
Agreement, the Material
              Subsidiary shall be deemed to be a Guarantor for all purposes under
              this
              Guaranty and shall subscribe to and agree to be bound by all of the
              terms,
              conditions, agreements, covenants, and undertakings set forth in
              herein.

          

           

          SECTION
            18. Section Headings. The Section and subsection
            headings herein are for convenience only and shall not be deemed part
            of this
            Guaranty.

           

          SECTION
            19. Successors and Assigns. This Guaranty shall be
            binding upon the Guarantor and the Guarantor's successors and assigns
            and shall
            inure to the benefit of the Administrative Agent and the Lenders and
            their
            successors and assigns.

           

          SECTION
            20. Time of the Essence. The Guarantor acknowledges
            that time is of the essence with respect to the Guarantors' obligations
            under
            this Guaranty.

           

          IN
            WITNESS WHEREOF, the Guarantor has caused this Guaranty to be
            duly executed as of the day and year first above written.

           

          [______________________]

           

          By:_____________________________________

          Name:
            __________________________________

          Title:
            ___________________________________

           

          

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          SCHEDULE
            I

           

          GUARANTY
            JOINDER AGREEMENT

           

          THIS
            GUARANTY JOINDER AGREEMENT (this "Joinder"), dated as of
            _________, 200_, is executed by _____________________________, a ____________
            ___________ (the "Additional Guarantor"), in favor of (i) the Lenders
            from time
            to time parties to the Credit Agreement described below and (ii) Bank
            of
            Oklahoma, National Association, as Administrative Agent under the Credit
            Agreement.

           

          RECITALS

           

          A. Unit
            Corporation, a Delaware corporation, Superior
            Pipeline Company, L.L.C., an Oklahoma limited liability company, Unit
            Drilling
            Company, an Oklahoma corporation, Unit Petroleum Company, Inc., an Oklahoma
            corporation, and Unit Texas Drilling, L.L.C., an Oklahoma limited liability
            company (collectively, the "Borrowers"), the Lenders therein named, and
            Bank of
            Oklahoma, National Association, as Administrative Agent, are parties
            to that
            certain First Amended and Restated Senior Credit Agreement dated effective
            as of
            May 24, 2007 (as amended, restated, supplemented or otherwise modified
            from time
            to time, the "Credit Agreement"). Capitalized terms used herein and not
            otherwise defined herein have the respective meanings assigned to them
            in the
            Credit Agreement.

           

          B.
 A
            Material Subsidiary has entered into that certain
            Guaranty Agreement dated effective as of ___________, in favor of the
            Lender and
            the Administrative Agent (as amended, restated, supplemented or otherwise
            modified from time to time, the "Guaranty"), pursuant to which such Material
            Subsidiary absolutely and unconditionally guaranteed, the full and punctual
            payment and performance of the Guaranteed Obligations, as more particularly
            set
            forth in the Guaranty.

           

          C.
 The
            Additional Guarantor is a Material Subsidiary of the
            Borrowers, and pursuant to Section 9.2 of the Credit Agreement, the Borrowers
            are required to cause the Additional Guarantor to guarantee to the
            Administrative Agent the prompt payment and performance of the Guaranteed
            Obligations. The Additional Guarantor desires to execute and deliver
            this
            Joinder to satisfy such requirement.

           

          NOW,
            THEREFORE, in consideration of the premises and other good
            and valuable consideration, the receipt and sufficiency of which are
            hereby
            acknowledged, the Additional Guarantor agrees as follows:

           

          SECTION
            1. Guaranty. The Additional Guarantor hereby
            absolutely and unconditionally guarantees, jointly and severally, as
            a primary
            obligor and not as surety, the full and punctual payment (whether at
            stated
            maturity, upon acceleration or early termination or otherwise, and at
            all times
            thereafter) and performance of the Guaranteed Obligations (as such term
            is
            defined in the Guaranty), including, without limitation, any such Guaranteed
            Obligations incurred or accrued during the pendency of any bankruptcy,
            insolvency, receivership or other similar proceeding, whether or not
            allowed or
            allowable in such proceeding. This Guaranty is a guaranty of payment
            and not
            just of collectibility and is in no way conditioned or contingent upon
            any
            attempt to collect from the Borrowers or upon any other event, 

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              
contingency or circumstance
              whatsoever. If for any reason whatsoever the Borrowers shall fail or
              be unable
              duly, punctually and fully to pay such amounts as and when the same
              shall become
              due and payable, the Guarantors, without demand, presentment, protest
              or notice
              of any kind, will forthwith pay or cause to be paid such amounts to
              the
              Administrative Agent under the terms of the Credit Agreement, any Note
              or other
              relevant Loan Document, in lawful money of the United States, at the
              place
              specified in the Credit Agreement, or perform or comply with the same
              or cause
              the same to be performed or complied with, together with interest (to
              the extent
              provided for under the Credit Agreement) on any amount due and owing
              from the
              Borrowers. 

          

           

          SECTION
            2. Binding Effect. This Joinder shall become
            effective when it shall have been executed by the Additional Guarantor
            and
            thereafter shall be binding upon the Additional Guarantor and shall inure
            to the
            benefit of the Lenders. Upon the effectiveness of this Joinder, the Additional
            Guarantor shall be deemed to be a Guarantor for all purposes under the
            Guaranty
            and shall subscribe to and agree to be bound by all of the terms, conditions,
            agreements, covenants, and undertakings set forth in the Guaranty, and
            this
            Joinder shall be deemed to be a part of and shall be subject to all the
            terms
            and conditions of the Guaranty. The Additional Guarantor shall not have
            the
            right to assign its rights hereunder or any interest herein without the
            prior
            written consent of the Administrative Agent. 

           

          SECTION
            3. CHOICE OF LAW. THIS JOINDER SHALL BE
            GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS (AND
            NOT THE
            LAW OF CONFLICTS) OF THE STATE OF OKLAHOMA.

           

          IN
            WITNESS WHEREOF, the Additional Guarantor has caused this
            Joinder to be duly executed and delivered by its duly authorized officer
            as of
            the date first above written.

           

          [______________________]

           

          

           

          By:_____________________________________

          Name:
            __________________________________

          Title:
            ___________________________________

           

          

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          SCHEDULE
            1

           

          PRICING
            SCHEDULE

           

          

          
            	
                    Applicable

                    Margin

                  	
                    Level
                      I

                    Status

                  	
                    Level
                      II

                    Status

                  	
                    Level
                      III

                    Status

                  	
                    Level
                      IV

                    Status

                  
	
                    Eurodollar
                      Rate

                  	
                    1.00%

                  	
                    1.25%

                  	
                    1.50%

                  	
                    1.75%

                  
	
                    Floating
                      Rate

                  	
                    0.00%

                  	
                    0.00%

                  	
                    0.00%

                  	
                    0.00%

                  

          

          

          

          
            	
                    Applicable

                    Margin

                  	
                    Level
                      I

                    Status

                  	
                    Level
                      II

                    Status

                  	
                    Level
                      III

                    Status

                  	
                    Level
                      IV

                    Status

                  
	
                    Commitment
                      Fee Rate 

                  	
                    0.250%

                  	
                    0.300%

                  	
                    0.350%

                  	
                    0.375%

                  

          

          

          For
            the purposes of this Schedule, the following terms have the
            following meanings, subject to the final paragraph of this Schedule:

           

          "Level
            I Status" exists at any date if the Borrowing Base Usage
            Percentage on such date is less than 50%.

           

          "Level
            II Status" exists at any date if the Borrowing Base Usage
            Percentage on such date is greater than or equal to 50% and less than
            75%.

           

          "Level
            III Status" exists at any date if the Borrowing Base Usage
            Percentage on such date is greater than or equal to 75% and less than
            90%.

           

          "Level
            IV Status" exists at any date if the Borrowing Base Usage
            Percentage on such date is greater than or equal to 90%.

           

          "Status"
            means either Level I Status, Level II Status, Level III
            Status or Level IV Status.

           

          The
            Applicable Margin and Commitment Fee Rate will be determined
            on a daily basis in accordance with the foregoing table based on the
            Borrowing
            Base Usage Percentage on such day.

           

          Letter
            of Credit Fees: Issuance Fees are payable quarterly in
            advance, determined as of the LC issue date based on the applicable Margin
            (Eurodollar Rate column) for Eurodollar Loans on the stated amount of
            the LC and
            an LC fronting fee of 0.125% per annum will be paid to the LC Issuer
            concurrent
            with execution.

           

          

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          SCHEDULE
            2

           

          LENDERS
            SCHEDULE

           

          

          
            	
                    Lender

                     

                  	
                    Aggregate

                    Commitment
                      Amount

                     

                  	
                    Maximum
                      Credit Amount

                     

                  	
                    Pro
                      Rata Share

                     

                  
	
                    Bank
                      of Oklahoma, N. A.

                     

                  	
                    $51,562,500.00

                     

                  	
                    $75,000,000.00

                     

                  	
                    18.75%

                     

                  
	
                    Bank
                      of America, N. A. 

                     

                  	
                    $
                      51,562,500.00

                     

                  	
                    $75,000,000.00

                     

                  	
                    18.75%

                     

                  
	
                    BMO

                     

                  	
                    $51,562,500.00

                     

                  	
                    $75,000,000.00

                     

                  	
                    18.75%

                     

                  
	
                    Compass
                      Bank

                     

                  	
                    $34,375,000.00

                     

                  	
                    $50,000,000.00

                     

                  	
                    12.50%

                     

                  
	
                    Comerica
                      Bank

                     

                  	
                    $24,062,500.00

                     

                  	
                    $35,000,000.00

                     

                  	
                    08.75%

                     

                  
	
                    Fortis
                      Capital Corp.

                     

                  	
                    $24,062,500.00

                     

                  	
                    $35,000,000.00

                     

                  	
                    08.75%

                     

                  
	
                    Calyon
                      New York Branch

                     

                  	
                    $24,062,500.00

                     

                  	
                    $35,000,000.00

                     

                  	
                    08.75%

                     

                  
	
                    Sterling
                      Bank

                     

                  	
                    $13,750,000.00

                     

                  	
                    $20,000,000.00

                     

                  	
                    05.00%

                     

                  
	
                    TOTAL

                     

                  	
                    $275,000,000.00

                     

                  	
                    $400,000,000.00

                     

                  	
                    100.00%

                     

                  

          

          

          

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          SCHEDULE
            3

           

          DISCLOSURE
            SCHEDULE

           

          1. Section
            5.8 -
            Subsidiaries

           

           

          
            	 	 State/Country  	 Ownership
                    Interest
	 Name	 of
                    Incorporation 	 by
                    Borrower
	 	 	 
	 Unit
                    Petroleum Company   	 Oklahoma	 100%
                    UC
	 Unit
                    Drilling Company   	 Oklahoma	 100%
                    UC
	 Unit
                    Texas Company    	 Oklahoma	 100%
                    UPC
	 Unit
                    Drilling and Exploration Company 	 Delaware 	 100%
                    UC
	 Petroleum
                    Supply Company   	 Oklahoma	 100%
                    UC
	 Unit
                    Energy Canada Inc.	 Alberta,
                    Canada 	 100%
                    UC
	 Superior
                    Pipeline Company LLC	 Oklahoma	 100%
                    UC
	 Unit
                    Drilling Company International 	 Cayman
                    Islands 	 100%
                    UDC
	 Unit
                    General LLC    	 Oklahoma 	 100%
                    UPC
	 Unit
                    Limited LLC    	 Oklahoma	 100%
                    UPC
	 UDC
                    General LLC    	 Oklahoma	 100%
                    UDC
	 UDC
                    Limited LLC    	 Oklahoma 	 100%
                    UDC
	 Unit
                    Texas Drilling, L.L.C.	 	 
	 UTD
                    General, L.L.C.	 	 
	 UTD
                    Limited, L.L.C.	 	 
	 UTD
                    Limited Partnership	 	 
	 GTS
                    Drilling Company	 	 
	 UTD
                    Texas LP	 	 
	 Brighton
                    Energy, L.L.C.	 	 
	 Unit
                    Texas LP	 	 
	 Superior
                    Texas GP, L.L.C.	 	 
	 Superior
                    Oklahoma, L.L.C.	 	 
	 Berkshire
                    Energy, L.L.C.	 	 
	 Superior
                    Gathering, LP	 	 

          

           

           

          2. Section
            7.2 - Existing
            Indebtedness

          

          King
            P. Kirchner Separation Agreement

          Separation
            obligations under employee benefit plans

          Customary
            gas balancing obligations

          Prepayments
            for contract drilling services

          Matters
            disclosed in Item 7 of Unit Corporation's 10-K for
            12-31-06

          Unit's
            consolidated financial statements as filed in its Form 10-Q
            for the quarter ended March 31, 2007

          

          3. Section
            7.6(v) - Existing
            Liens

          

          None

          

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          4. Section
            7.5 - Investments

          

          Investment
            in public and private limited partnerships sponsored by
            Borrowers

          Superior
            Investment in Driscoll System, L.P. 

          

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          

          SCHEDULE
            4

           

          ENVIRONMENTAL
            MATTERS

           

          None.

           

          

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          SCHEDULE
            5

           

          RATE
            MANAGEMENT TRANSACTIONS

           

          Natural
            Gas - Hedge transaction for 10,000 mmBtus/day dated
            December 15, 2006, effective January 1, 2007 and terminating December
            31, 2007
            with Bank of Montreal

           

          Natural
            Gas - Hedge transaction for 10,000 mmBtus/day dated
            January 31, 2007, effective March 1, 2007 and terminating December 31,
            2007 with
            Bank of Montreal

           

          Natural
            Gas - Hedge transaction for 10,000 mmBtus/day dated
            February 2, 2007, effective March 1, 2007 and terminating December 31,
            2007 with
            Bank of Montreal

           

          Interest
            Rate-Swap Transaction for $50,000,000 dated February 25,
            2005, effective March 1, 2005, and terminating January 30, 2008, with
            Bank of
            Oklahoma, National Association

           

          

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          

          

          SCHEDULE
            6

           

          EXCLUDED
            ACCOUNTS

           

          
            	
                     Account
                      Name

                  	
                     Checking
                      Account #

                  	
                     Investment
                      Account

                  	
                     GB
                      Reserve Account

                  
	 	 	 	 
	
                     1979
                      O&G Program

                  	
                     101174868

                  	
                     700148623

                  	 
	 1984
                    Limited Partnership	
                     102657437

                  	
                     700148491

                  	 
	 1986
                    Energy Income Ltd Partnership	
                     207923104

                  	
                     700147380

                  	 
	 2000
                    Employee O&G Partnership	
                     208331182

                  	
                     700170326

                  	 
	 2001
                    Employee O&G Partnership	
                     208335758

                  	
                     700171426

                  	 
	 2002
                    Employee O&G Partnership	
                     208341445

                  	
                     700173010

                  	 
	 2003
                    Employee O&G Partnership	
                     208346131

                  	
                     700175408

                  	 
	 2004
                    Employee O&G Partnership	
                     208351092

                  	
                     700176453

                  	 
	 Consolidated
                    Employee O&G 	 	 	 
	  
                    Partnership	
                     103840773

                  	
                     810039724

                  	 
	 Esco-Boston
                    86-1 Limited Partnership	
                     207928648

                  	
                     700149822

                  	
                     700149877

                  
	 Questa
                    1985 Program Ltd	
                     208332084

                  	
                     700106218

                  	 
	 Unidentified
                    Mineral Owner	
                     103570184

                  	
                     N/A

                  	 
	 2005
                    Employee O&G Partnership	
                     208357219

                  	
                     208357208

                  	 
	 2006
                    Employee O&G Partnership	
                     208363071

                  	
                     208363082

                  	 
	 2007
                    Employee O&G Partnership	
                     209914929

                  	
                     700181117

                  	 
	 PetroCorp
                    Escrow Account	 	
                     7180011341

                  	 

          

           

          

           

          
            
              
              

            

            
              
              

              
              

            

            
              
              

            

          

          SCHEDULE
            7

           

          CONTINGENT
            OBLIGATIONS

           

          - Benefits
            payable under Health Plans

           

          - Benefits
            payable under Separation Benefit Plans

           

          - Benefits
            payable under Workers’ Compensation plans

           

          - Benefits
            payable under Salary Deferral Plans

           

          - Operating
            Leases

           

          -
            Contingent Obligations referenced in the consolidated financial
            statements of Unit included in its annual report on Form 10-K filed with
            the SEC
            for the year ended December 31, 2007 and its quarterly report on Form
            10-Q filed
            with the SEC for the quarter ended March 31, 2007Exhibit 4.1

                               INDENTURE OF TRUST

                                 by and between

                        NELNET STUDENT LOAN TRUST 2007-1

                                       and

                           ZIONS FIRST NATIONAL BANK,
                    as Trustee and as Eligible Lender Trustee

                             Dated as of May 1, 2007

<PAGE>

                        NELNET STUDENT LOAN TRUST 2007-1

        Reconciliation and tie between Trust Indenture Act of 1939, as amended
(the "Trust Indenture Act") and Indenture of Trust, dated as of May 1, 2007.

       TRUST INDENTURE ACT SECTION                   INDENTURE SECTION

Section 310(a)(1)                                           7.23
310(a)(2)                                                   7.23
310(b)                                                      7.23, 7.09
Section 311(a)                                              7.08
311(b)                                                      7.08
Section 312(b)                                              9.16
312(c)                                                      9.16
Section 313(a)                                              4.15
313(b)                                                      4.15
313(c)                                                      4.15, 6.15
Section 314(a)(1)                                           4.15
314(a)(2)                                                   4.15
314(a)(3)                                                   4.15
314(a)(4)                                                   4.16
314(c)                                                      2.02, 5.08
314(d)(1)                                                   5.08
Section 315(b)                                              6.15
Section 317(a)(1)                                           4.17, 6.10
317(a)(2)                                                   7.24
Section 318(a)                                              9.09
318(c)                                                      9.09

--------------------
NOTE: This reconciliation and tie shall not, for any purpose, be deemed to be a
part of the Indenture.

        Attention should also be directed to Section 318(c) of the Trust
Indenture Act, which provides that the provisions of Sections 310 to and
including 317 of the Trust Indenture Act are a part of and govern every
qualified indenture, whether or not physically contained therein.

<PAGE>

                                    ARTICLE I

DEFINITIONS AND USE OF PHRASES.................................................3

                                   ARTICLE II
                         NOTE DETAILS AND FORM OF NOTES

Section 2.01.     Note Details................................................26
Section 2.02.     Execution, Authentication and Delivery of Notes.............26
Section 2.03.     Registration, Transfer and Exchange of Notes; Persons
                  Treated as Registered Owners................................27
Section 2.04.     Lost, Stolen, Destroyed and Mutilated Notes.................28
Section 2.05.     Trustee's Authentication Certificate........................28
Section 2.06.     Cancellation and Destruction of Notes by the Trustee........28
Section 2.07.     Temporary Notes.............................................28
Section 2.08.     Issuance of Notes...........................................29
Section 2.09.     Definitive Notes............................................29
Section 2.10.     Payment of Principal and Interest...........................30
Section 2.11.     Notices to Clearing Agency..................................30

                                   ARTICLE III
     PARITY AND PRIORITY OF LIEN; OTHER OBLIGATIONS; AND DERIVATIVE PRODUCTS

Section 3.01.     Parity and Priority of Lien.................................31
Section 3.02.     Other Obligations...........................................31
Section 3.03.     Derivative Products; Counterparty Payments; Issuer
                  Derivative Payments.........................................31

                                   ARTICLE IV
                   PROVISIONS APPLICABLE TO THE NOTES; DUTIES OF THE ISSUER

Section 4.01.     Payment of Principal and Interest...........................32
Section 4.02.     Covenants as to Additional Conveyances......................32
Section 4.03.     Further Covenants of the Issuer.............................32
Section 4.04.     Enforcement of Master Servicing Agreement and Subservicing
                  Agreements..................................................33
Section 4.05.     Procedures for Transfer of Funds............................35
Section 4.06.     Additional Covenants with Respect to the Higher Education
                  Act.........................................................35
Section 4.07.     Financed Eligible Loans; Collections Thereof; Assignment
                  Thereof.....................................................36
Section 4.08.     Appointment of Agents, Direction to Trustee, Etc............37
Section 4.09.     Capacity to Sue.............................................37
Section 4.10.     Continued Existence; Successor to Issuer....................37
Section 4.11.     Amendment of Student Loan Purchase Agreements...............37
Section 4.12.     Representations; Negative Covenants.........................38
Section 4.13.     Additional Covenants........................................43
Section 4.14.     Providing of Notice.........................................44
Section 4.15.     Certain Reports.............................................44
Section 4.16.     Statement as to Compliance..................................45
Section 4.17.     Representations of the Issuer Regarding the Trustee's
                  Security Interest...........................................46
Section 4.18.     Further Covenants of the Issuer Regarding the Trustee's
                  Security Interest...........................................47

<PAGE>

Section 4.19.     Borrower Incentive Programs.................................47
Section 4.20.     Statements to Noteholders...................................47

                                    ARTICLE V
                                      FUNDS

Section 5.01.     Creation and Continuation of Funds and Accounts.............48
Section 5.02.     Acquisition Fund............................................48
Section 5.03.     Capitalized Interest Fund...................................50
Section 5.04.     Collection Fund.............................................50
Section 5.05.     Reserve Fund................................................57
Section 5.06.     Department Rebate Fund......................................58
Section 5.07.     Investment of Funds Held by Trustee.........................58
Section 5.08.     Release.....................................................59

                                   ARTICLE VI
                              DEFAULTS AND REMEDIES

Section 6.01.     Events of Default Defined...................................60
Section 6.02.     Remedy on Default; Possession of Trust Estate...............60
Section 6.03.     Remedies on Default; Advice of Counsel......................62
Section 6.04.     Remedies on Default; Sale of Trust Estate...................62
Section 6.05.     Appointment of Receiver.....................................63
Section 6.06.     Restoration of Position.....................................63
Section 6.07.     Application of Sale Proceeds................................63
Section 6.08.     Acceleration of Maturity; Rescission and Annulment..........63
Section 6.09.     Remedies Not Exclusive......................................64
Section 6.10.     Collection of Indebtedness and Suits for Enforcement by
                    Trustee...................................................64
Section 6.11.     Direction of Trustee........................................65
Section 6.12.     Right to Enforce in Trustee.................................66
Section 6.13.     Physical Possession of Obligations Not Required.............66
Section 6.14.     Waivers of Events of Default................................66
Section 6.15.     Notice of Defaults..........................................66

                                   ARTICLE VII
                                   THE TRUSTEE

Section 7.01.     Acceptance of Trust.........................................67
Section 7.02.     Recitals of Others..........................................67
Section 7.03.     As to Filing of Indenture...................................68
Section 7.04.     Trustee May Act Through Agents..............................68
Section 7.05.     Indemnification of Trustee..................................68
Section 7.06.     Trustee's Right to Reliance.................................69
Section 7.07.     Compensation of Trustee.....................................70
Section 7.08.     Creditor Relationships......................................70
Section 7.09.     Resignation of Trustee......................................70
Section 7.10.     Removal of Trustee..........................................71
Section 7.11.     Successor Trustee...........................................71
Section 7.12.     Manner of Vesting Title in Trustee..........................72

                                       ii
<PAGE>

Section 7.13.     Additional Covenants by the Trustee to Conform to the
                  Higher Education Act........................................72
Section 7.14.     Right of Inspection.........................................72
Section 7.15.     Limitation with Respect to Examination of Reports...........72
Section 7.16.     Servicing Agreements........................................73
Section 7.17.     Additional Covenants of Trustee.............................73
Section 7.18.     Notices to Rating Agencies..................................73
Section 7.19.     Merger of the Trustee.......................................74
Section 7.20.     Receipt of Funds from Master Servicer or a Subservicer......74
Section 7.21.     Special Circumstances Leading to Resignation of Trustee.....74
Section 7.22.     Survival of Trustee's Rights to Receive Compensation,
                  Reimbursement and Indemnification...........................74
Section 7.23.     Corporate Trustee Required; Eligibility; Conflicting
                  Interests...................................................74
Section 7.24.     Trustee May File Proofs of Claim............................75
Section 7.25.     No Petition.................................................76

                                  ARTICLE VIII
                             SUPPLEMENTAL INDENTURES

Section 8.01.     Supplemental Indentures Not Requiring Consent of
                  Registered Owners...........................................76
Section 8.02.     Supplemental Indentures Requiring Consent of Registered
                  Owners......................................................77
Section 8.03.     Additional Limitation on Modification of Indenture..........78
Section 8.04.     Conformity with the Trust Indenture Act.....................78

                                   ARTICLE IX
                               GENERAL PROVISIONS

Section 9.01.     Notices.....................................................78
Section 9.02.     Covenants Bind Issuer.......................................79
Section 9.03.     Lien Created................................................80
Section 9.04.     Severability of Lien........................................80
Section 9.05.     Consent of Registered Owners Binds Successors...............80
Section 9.06.     Nonliability of Persons; No General Obligation..............80
Section 9.07.     Nonpresentment of Notes or Interest Checks..................80
Section 9.08.     Security Agreement..........................................81
Section 9.09.     Laws Governing..............................................81
Section 9.10.     Severability................................................81
Section 9.11.     Exhibits....................................................81
Section 9.12.     Non-Business Days...........................................81
Section 9.13.     Parties Interested Herein...................................81
Section 9.14.     Obligations Are Limited Obligations.........................81
Section 9.15.     Limitations on Counterparty Rights..........................81
Section 9.16.     Disclosure of Names and Addresses of Registered Owners......82
Section 9.17.     Aggregate Principal Amount of Obligations...................82
Section 9.18.     Financed Eligible Loans.....................................82
Section 9.19.     Concerning the Delaware Trustee.............................82

                                       iii
<PAGE>

                                    ARTICLE X
         PAYMENT AND CANCELLATION OF NOTES AND SATISFACTION OF INDENTURE

Section 10.01.    Trust Irrevocable...........................................83
Section 10.02.    Satisfaction of Indenture...................................83
Section 10.03.    Optional Purchase of All Financed Eligible Loans............84
Section 10.04.    Auction of Financed Eligible Loans..........................85
Section 10.05.    Cancellation of Paid Notes..................................86

APPENDIX A        CERTAIN TERMS AND PROVISIONS OF THE AUCTION RATE NOTES
ATTACHMENT A      NOTICE OF PAYMENT DEFAULT
ATTACHMENT B      NOTICE OF CURE OF PAYMENT DEFAULT
ATTACHMENT C      NOTICE OF PROPOSED CHANGE IN LENGTH OF ONE OR MORE AUCTION
                  PERIODS
ATTACHMENT D      NOTICE ESTABLISHING CHANGE IN LENGTH OF ONE OR MORE AUCTION
                  PERIODS
ATTACHMENT E      NOTICE OF CHANGE IN AUCTION DATE
EXHIBIT A         ELIGIBLE LOAN ACQUISITION CERTIFICATE
EXHIBIT B-1       FORM OF CLASS A-1 NOTE
EXHIBIT B-2       FORM OF CLASS A-2 NOTE
EXHIBIT B-3       FORM OF CLASS A-3 NOTE
EXHIBIT B-4       FORM OF CLASS A-4 NOTE
EXHIBIT B-5       FORM OF CLASS B-1 NOTE
EXHIBIT B-6       FORM OF CLASS B-2 NOTE
EXHIBIT C         FORM OF ADMINISTRATOR'S MONTHLY SERVICING PAYMENT DATE
                  CERTIFICATE
EXHIBIT D         FORM OF ADMINISTRATOR'S DISTRIBUTION DATE CERTIFICATE
EXHIBIT E         REPORT TO REGISTERED OWNERS

                                       iv
<PAGE>

                               INDENTURE OF TRUST

        THIS INDENTURE OF TRUST, dated as of May 1, 2007 (this "Indenture"), is
by and between NELNET STUDENT LOAN TRUST 2007-1 (the "Issuer"), a statutory
trust duly organized and existing under the laws of the State of Delaware (the
"State"), and ZIONS FIRST NATIONAL BANK, a national banking association duly
organized and operating under the laws of the United States of America, as
trustee hereunder (together with its successors, the "Trustee") and as eligible
lender trustee (together with its successors, the "Eligible Lender Trustee")
under the Eligible Lender Trust Agreement (all capitalized terms used in these
preambles, recitals and granting clauses shall have the same meanings assigned
thereto in Article I hereof).

                              W I T N E S S E T H :

        WHEREAS, the Issuer represents that it is duly created as a statutory
trust under the laws of the State and that by proper action has duly authorized
the execution and delivery of this Indenture, which Indenture provides for the
payment of student loan asset-backed notes (the "Notes") and the payments to any
Counterparty; and

        WHEREAS, this Indenture is subject to the provisions of the Trust
Indenture Act of 1939, as amended (the "Trust Indenture Act"), that are deemed
to be incorporated into this Indenture and shall, to the extent applicable, be
governed by such provisions; and

        WHEREAS, the Trustee has agreed to accept the trusts herein created upon
the terms herein set forth; and

        WHEREAS, it is hereby agreed between the parties hereto, the Registered
Owners of the Notes (the Registered Owners evidencing their consent by their
acceptance of the Notes) and any Counterparty (the Counterparty evidencing its
consent by its execution and delivery of a Derivative Product) that in the
performance of any of the agreements of the Issuer herein contained, any
obligation it may thereby incur for the payment of money shall not be general
debt on its part, but shall be secured by and payable solely from the Trust
Estate, payable in such order of preference and priority as provided herein;

        NOW, THEREFORE, the Issuer, and as applicable the Eligible Lender
Trustee, in consideration of the premises and acceptance by the Trustee of the
trusts herein created, of the purchase and acceptance of the Notes by the
Registered Owners thereof, of the execution and delivery of any Derivative
Product by a Counterparty and the Issuer and the acknowledgement thereof by the
Trustee, of the acknowledgement by the Trustee of the Granting Clauses set forth
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, do hereby GRANT, CONVEY, PLEDGE,
TRANSFER, ASSIGN AND DELIVER to the Trustee, for the benefit of the Registered
Owners of the Notes and any Counterparty (to secure the payment of any and all
amounts which may from time to time become due and owing to a Counterparty
pursuant to any Derivative Product), all of the moneys, rights and properties
described in the granting clauses A through F below (the "Trust Estate"), as
follows:

<PAGE>

                                GRANTING CLAUSE A

        The Available Funds (other than moneys released from the lien of the
Trust Estate as provided herein);

                                GRANTING CLAUSE B

        All moneys and investments held in the Funds and Accounts created under
Section 5.01 hereof, including all proceeds thereof and all income thereon;

                                GRANTING CLAUSE C

        The Financed Eligible Loans (other than Financed Eligible Loans released
from the lien of the Trust Estate as provided herein) and all obligations of the
obligors thereunder including all moneys accrued and paid thereunder on or after
the Cutoff Date;

                                GRANTING CLAUSE D

        The rights of the Issuer and/or the Eligible Lender Trustee, as
applicable, in and to the Eligible Lender Trust Agreement, the Master Servicing
Agreement, any Subservicing Agreement, the Student Loan Purchase Agreements, the
Administration Agreement, the Custodian Agreements and the Guarantee Agreements
as the same relate to the Financed Eligible Loans;

                                GRANTING CLAUSE E

        The rights of the Issuer in and to any Derivative Product; provided,
however, that this Granting Clause E shall not be for the benefit of a
Counterparty with respect to its Derivative Product; and

                                GRANTING CLAUSE F

        All proceeds from any property described in these Granting Clauses and
any and all other property, rights and interests of every kind or description
that from time to time hereafter is granted, conveyed, pledged, transferred,
assigned or delivered to the Trustee as additional security hereunder.

        TO HAVE AND TO HOLD the Trust Estate, whether now owned or held or
hereafter acquired, unto the Trustee and its successors or assigns;

        IN TRUST NEVERTHELESS, upon the terms and trusts herein set forth for
the equal and proportionate benefit and security of all present and future
Registered Owners of the Notes, without preference of any Note over any other,
except as provided herein, and for enforcement of the payment of the Notes in
accordance with their terms, and all other sums payable hereunder (including
payments due and payable to any Counterparty) or on the Notes, and for the
performance of and compliance with the obligations, covenants and conditions of
this Indenture, as if all the Notes and other Obligations (as defined herein) at
any time Outstanding had been executed and delivered simultaneously with the
execution and delivery of this Indenture;

                                       2
<PAGE>

        PROVIDED, HOWEVER, that if the Issuer, its successors or assigns, shall
well and truly pay, or cause to be paid, the principal of the Notes and the
interest due and to become due thereon, or provide fully for payment thereof as
herein provided, at the times and in the manner mentioned in the Notes according
to the true intent and meaning thereof, and shall make all required payments
into the Funds as required under Article V hereof, or shall provide, as
permitted hereby, for the payment thereof by depositing with the Trustee sums
sufficient to pay or to provide for payment of the entire amount due and to
become so due as herein provided (including payments due and payable to any
Counterparty), then this Indenture (other than Sections 4.12, 4.13 (for a period
of 90 days after the Issuer has paid or provided for the payments of the amounts
described herein) and 7.05 hereof) and the rights hereby granted shall cease,
terminate and be void; otherwise, this Indenture shall be and remain in full
force and effect;

        NOW, THEREFORE, it is mutually covenanted and agreed as follows:

                                   ARTICLE I

                         DEFINITIONS AND USE OF PHRASES

        Capitalized terms used herein and not otherwise defined shall have the
meanings set forth below or in Appendix A, as applicable, unless the context
clearly requires otherwise:

        "ACCOUNT" shall mean any of the accounts created and established within
any Fund pursuant to this Indenture.

        "ACQUISITION FUND" shall mean the Fund by that name created in Section
5.01(a) hereof and further described in Section 5.02 hereof, including the Costs
of Issuance Account, the Prefunding Account and any additional Accounts and
Subaccounts created therein.

        "ADJUSTED POOL BALANCE" shall mean, for any Quarterly Distribution Date
as determined by the Administrator, (a) if the Pool Balance as of the last day
of the related Collection Period is greater than 40% of the Initial Pool
Balance, the sum of such Pool Balance and the Specified Reserve Fund Balance for
that Quarterly Distribution Date; or (b) if the Pool Balance as of the last day
of the related Collection Period is less than or equal to 40% of the Initial
Pool Balance, that Pool Balance.

        "ADMINISTRATION AGREEMENT" shall mean the Administration Agreement,
dated as of May 1, 2007, among the Issuer, the Administrator, the Trustee and
the Delaware Trustee, as supplemented and amended.

        "ADMINISTRATION FEE" shall mean an amount equal to 0.18% per annum,
based on the aggregate principal amount of the Pool Balance at any time, as
determined by the Administrator; provided, however, that if (a) on and after the
Stepdown Date, a Trigger Event is in effect or (b) the spread between the
quarterly average of Three-Month LIBOR and the quarterly average of Commercial
Paper Rate, each for the preceding quarter, is 0.20% or greater, the
Administration Fee shall be reduced to an amount equal to 0.05% per annum, based
on the aggregate principal amount of the Pool Balance at any time, as determined
by the Administrator.

                                       3
<PAGE>

        "ADMINISTRATOR" shall mean National Education Loan Network, Inc. in its
capacity as administrator of the Issuer and the Financed Eligible Loans, or any
successor thereto in accordance with the Administration Agreement.

        "AFFILIATE" shall mean, 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.

        "AUCTION RATE CARRY-OVER AMOUNT" shall mean the Class B-2 Carry-Over
Amount to the extent owed pursuant to Appendix A hereto (including interest
accrued thereon as specified therein).

        "AUCTION RATE NOTEHOLDERS" shall mean the Class B-2 Noteholders.

        "AUCTION RATE NOTES" shall mean the Class B-2 Notes.

        "AUTHORIZED DENOMINATIONS" shall have the meaning ascribed to such term
in Section 2.02 hereof

        "AUTHORIZED REPRESENTATIVE" shall mean, when used with reference to the
Issuer, the Administrator and any Person duly authorized by the Trust Agreement
to act on the Issuer's behalf.

        "AVAILABLE FUNDS" shall mean, with respect to a Distribution Date or any
related Monthly Servicing Payment Date, the sum of the following amounts
received to the extent not previously distributed: (a) all collections received
by the Master Servicer or any Subservicer on the Financed Eligible Loans
(including late fees received by the Master Servicer or any Subservicer with
respect to the Financed Eligible Loans and payments from any Guaranty Agency
received with respect to the Financed Eligible Loans but net of (i) any
collections in respect of principal on the Financed Eligible Loans applied by
the Issuer to repurchase guaranteed loans from the Guaranty Agencies or the
Master Servicer or any Subservicer in accordance with its Guarantee Agreement,
the Master Servicing Agreement or the related Subservicing Agreement, as
applicable; (ii) amounts required by the Higher Education Act to be paid to the
Department (including, but not limited to, rebate fees owed with respect to
consolidation loans and any Department Rebate Interest Amounts to be deposited
into the Department Rebate Fund or paid directly to the Department) or to be
repaid to borrowers (whether or not in the form of a principal reduction of the
applicable Financed Eligible Loan), with respect to the Financed Eligible Loans;
and (iii) any proceeds used to purchase Eligible Loans which constitute "add-on
consolidation loans" (to the extent funds are not available therefore in the
Prefunding Account of the Acquisition Fund); (b) any Interest Benefit Payments
and Special Allowance Payments received by the Trustee or the Eligible Lender
Trustee with respect to Financed Eligible Loans; (c) all Liquidation Proceeds;
(d) the aggregate Purchase Amounts received for Financed Eligible Loans
repurchased by the Seller or purchased by the Master Servicer or a Subservicer
or for serial loans sold to another eligible lender pursuant to the Master

                                       4
<PAGE>

Servicing Agreement or the related Subservicing Agreement; (e) the aggregate
amounts, if any, received from the Seller, the Master Servicer or any
Subservicer, as the case may be, as reimbursement of non-guaranteed interest
amounts, or lost Interest Benefit Payments and Special Allowance Payments, with
respect to the Financed Eligible Loans pursuant to a Student Loan Purchase
Agreement, the Master Servicing Agreement or a Subservicing Agreement,
respectively; (f) other amounts received by the Master Servicer or a Subservicer
pursuant to its role as Master Servicer or Subservicer under the Master
Servicing Agreement or the related Subservicing Agreement, respectively, and
payable to the Issuer in connection therewith; (g) all interest earned or gain
realized from the investment of amounts in any Fund or Account; (h) any payments
received under the Derivative Products from the Counterparties in respect of
such Distribution Date and (i) any other amounts deposited to the Collection
Fund. "Available Funds" shall be determined pursuant to the terms of this
definition by the Administrator and reported to the Trustee. Amounts described
in clause (a)(i), (ii) and (iii) hereof shall be paid by the Trustee upon
receipt of a written direction from the Administrator. The Trustee may
conclusively rely on such determinations without further duty to review or
examine such information.

        "BASIC DOCUMENTS" shall mean the Trust Agreement, this Indenture, the
Master Servicing Agreement, any Subservicing Agreement, the Administration
Agreement, the Student Loan Purchase Agreements, the Custodian Agreements, the
Guarantee Agreements, the Eligible Lender Trust Agreement, the Derivative
Products, the Auction Agent Agreement, the Broker-Dealer Agreements and other
documents and certificates delivered in connection with any thereof.

        "BUSINESS DAY" shall mean (a) for purposes of the LIBOR Rate Notes, (i)
for purposes of calculating LIBOR, any day on which banks in New York, New York
and London, England are open for the transaction of international business; and
(ii) for all other purposes, any day other than a Saturday, a Sunday, a holiday
or any other day on which banks located in New York, New York or the city in
which the principal office of the Trustee is located, are authorized or
permitted by law, regulation or executive order to close; and (b) for the
purposes of the Auction Rate Notes, the definition of "Business Day" set forth
in Appendix A hereto.

        "CAPITALIZED INTEREST FUND" shall mean the Fund by that name created in
Section 5.01(b) hereof and further described in Section 5.03 hereof.

        "CARRYOVER SERVICING FEES" shall have the meaning assigned to such term
in the Master Servicing Agreement.

        "CERTIFICATE OF INSURANCE" shall mean any Certificate evidencing that a
Financed Eligible Loan is Insured pursuant to a Contract of Insurance.

        "CERTIFICATE OF TRUST" shall mean the certificate filed with the
Secretary of State of the State establishing the Issuer under Delaware law.

        "CLASS" shall mean, as appropriate, the Class A-1 Notes, the Class A-2
Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B-1 Notes or the
Class B-2 Notes.

        "CLASS A NOTEHOLDER" shall mean the Person in whose name a Class A Note
is registered in the Note registration books of the Trustee.

                                       5
<PAGE>

        "CLASS A NOTEHOLDERS' INTEREST DISTRIBUTION AMOUNT" shall mean, for any
Quarterly Distribution Date for any Class of Class A Notes, the Class A-1
Noteholders' Interest Distribution Amount, the Class A-2 Noteholders' Interest
Distribution Amount, the Class A-3 Noteholders' Interest Distribution Amount and
the Class A-4 Noteholders' Interest Distribution Amount, as applicable, in each
case to the extent payable on such Quarterly Distribution Date.

        "CLASS A NOTES" shall mean, collectively, the Class A-1 Notes, the Class
A-2 Notes, the Class A-3 Notes and the Class A-4 Notes secured on a senior
priority to the Class B Notes.

        "CLASS A OBLIGATIONS" shall mean Class A Notes and the Derivative
Products, the priority of payment of which is equal with that of Class A Notes.

        "CLASS A PERCENTAGE" shall mean, for any Quarterly Distribution Date,
100% less the Class B Percentage.

        "CLASS A PRINCIPAL DISTRIBUTION AMOUNT" shall mean, for any Quarterly
Distribution Date, the product of the Principal Distribution Amount and the
Class A Percentage.

        "CLASS A-1 MATURITY DATE" shall mean the November 2018 Quarterly
Distribution Date.

        "CLASS A-1 NOTE INTEREST SHORTFALL" shall mean, with respect to any
Quarterly Distribution Date, the excess, if any, of (a) the Class A-1
Noteholders' Interest Distribution Amount on the immediately preceding Quarterly
Distribution Date over (b) the amount of interest actually distributed to the
Class A-1 Noteholders on such preceding Quarterly Distribution Date, plus
interest on the amount of such excess interest due to the Class A-1 Noteholders,
to the extent permitted by law, at the interest rate borne by the Class A-1
Notes from such immediately preceding Quarterly Distribution Date to the current
Quarterly Distribution Date, as determined by the Administrator.

        "CLASS A-1 NOTEHOLDER" shall mean the Person in whose name a Class A-1
Note is registered in the Note registration books maintained by the Trustee.

        "CLASS A-1 NOTEHOLDERS' INTEREST DISTRIBUTION AMOUNT" shall mean, with
respect to any Quarterly Distribution Date, the sum of (a) the amount of
interest accrued at the Class A-1 Rate for the related Interest Accrual Period
on the Outstanding Amount of the Class A-1 Notes immediately prior to such
Quarterly Distribution Date; and (b) the Class A-1 Note Interest Shortfall for
such Quarterly Distribution Date, as based on the actual number of days in such
Interest Accrual Period divided by 360 and rounding the resultant figure to the
fifth decimal place, as determined by the Administrator.

        "CLASS A-1 NOTES" shall mean the $1,088,000,000 Student Loan
Asset-Backed Notes, Senior Class A-1 issued by the Issuer pursuant to this
Indenture, substantially in the form of Exhibit B-1 hereto.

        "CLASS A-1 RATE" shall mean, for any Interest Accrual Period, other than
the first Interest Accrual Period, the applicable Three-Month LIBOR, plus 0.01%,
as determined by the Administrator. For the first Interest Accrual Period, the
Class A-1 Rate shall be determined by reference to the following formula:

                                       6
<PAGE>

        x + [3/31 * (y-x)] plus 0.01%, as determined by the Administrator.

        where:

        x = Six-Month LIBOR, and

        y = Seven-Month LIBOR.

        "CLASS A-2 MATURITY DATE" shall mean the August 2021 Quarterly
Distribution Date.

        "CLASS A-2 NOTE INTEREST SHORTFALL" shall mean, with respect to any
Quarterly Distribution Date, the excess, if any, of (a) the Class A-2
Noteholders' Interest Distribution Amount on the immediately preceding Quarterly
Distribution Date over (b) the amount of interest actually distributed to the
Class A-2 Noteholders on such preceding Quarterly Distribution Date, plus
interest on the amount of such excess interest due to the Class A-2 Noteholders,
to the extent permitted by law, at the interest rate borne by the Class A-2
Notes from such immediately preceding Quarterly Distribution Date to the current
Quarterly Distribution Date, as determined by the Administrator.

        "CLASS A-2 NOTEHOLDER" shall mean the Person in whose name a Class A-2
Note is registered in the Note registration books maintained by the Trustee.

        "CLASS A-2 NOTEHOLDERS' INTEREST DISTRIBUTION AMOUNT" shall mean, with
respect to any Quarterly Distribution Date, the sum of (a) the amount of
interest accrued at the Class A-2 Rate for the related Interest Accrual Period
on the Outstanding Amount of the Class A-2 Notes immediately prior to such
Quarterly Distribution Date; and (b) the Class A-2 Note Interest Shortfall for
such Quarterly Distribution Date, as based on the actual number of days in such
Interest Accrual Period divided by 360 and rounding the resultant figure to the
fifth decimal place, as determined by the Administrator.

        "CLASS A-2 NOTES" shall mean the $387,000,000 Student Loan Asset-Backed
Notes, Senior Class A-2 issued by the Issuer pursuant to this Indenture,
substantially in the form of Exhibit B-2 hereto.

        "CLASS A-2 RATE" shall mean, for any Interest Accrual Period, other than
the first Interest Accrual Period, the applicable Three-Month LIBOR, plus 0.05%,
as determined by the Administrator. For the first Interest Accrual Period, the
Class A-2 Rate shall be determined by reference to the following formula:

        x + [3/31 * (y-x)] plus 0.05%, as determined by the Administrator.

        where:

        x = Six-Month LIBOR, and

        y = Seven-Month LIBOR.

        "CLASS A-3 MATURITY DATE" shall mean the May 2025 Quarterly Distribution
Date.

                                       7
<PAGE>

        "CLASS A-3 NOTE INTEREST SHORTFALL" shall mean, with respect to any
Quarterly Distribution Date, the excess, if any, of (a) the Class A-3
Noteholders' Interest Distribution Amount on the immediately preceding Quarterly
Distribution Date over (b) the amount of interest actually distributed to the
Class A-3 Noteholders on such preceding Quarterly Distribution Date, plus
interest on the amount of such excess interest due to the Class A-3 Noteholders,
to the extent permitted by law, at the interest rate borne by the Class A-3
Notes from such immediately preceding Quarterly Distribution Date to the current
Quarterly Distribution Date, as determined by the Administrator.

        "CLASS A-3 NOTEHOLDER" shall mean the Person in whose name a Class A-3
Note is registered in the Note registration books maintained by the Trustee.

        "CLASS A-3 NOTEHOLDERS' INTEREST DISTRIBUTION AMOUNT" shall mean, with
respect to any Quarterly Distribution Date, the sum of (a) the amount of
interest accrued at the Class A-3 Rate for the related Interest Accrual Period
on the Outstanding Amount of the Class A-3 Notes immediately prior to such
Quarterly Distribution Date; and (b) the Class A-3 Note Interest Shortfall for
such Quarterly Distribution Date, as based on the actual number of days in such
Interest Accrual Period divided by 360 and rounding the resultant figure to the
fifth decimal place, as determined by the Administrator.

        "CLASS A-3 NOTES" shall mean the $383,000,000 Student Loan Asset-Backed
Notes, Senior Class A-3 issued by the Issuer pursuant to this Indenture,
substantially in the form of Exhibit B-3 hereto.

        "CLASS A-3 RATE" shall mean, for any Interest Accrual Period, other than
the first Interest Accrual Period, the applicable Three-Month LIBOR, plus 0.07%,
as determined by the Administrator. For the first Interest Accrual Period, the
Class A-3 Rate shall be determined by reference to the following formula:

        x + [3/31 * (y-x)] plus 0.07%, as determined by the Administrator.

        where:

        x = Six-Month LIBOR, and

        y = Seven-Month LIBOR.

        "CLASS A-4 MATURITY DATE" shall mean the August 2036 Quarterly
Distribution Date.

        "CLASS A-4 NOTE INTEREST SHORTFALL" shall mean, with respect to any
Quarterly Distribution Date, the excess, if any, of (a) the Class A-4
Noteholders' Interest Distribution Amount on the immediately preceding Quarterly
Distribution Date over (b) the amount of interest actually distributed to the
Class A-4 Noteholders on such preceding Quarterly Distribution Date, plus
interest on the amount of such excess interest due to the Class A-4 Noteholders,
to the extent permitted by law, at the interest rate borne by the Class A-4
Notes from such immediately preceding Quarterly Distribution Date to the current
Quarterly Distribution Date, as determined by the Administrator.

                                       8
<PAGE>

        "CLASS A-4 NOTEHOLDER" shall mean the Person in whose name a Class A-4
Note is registered in the Note registration books maintained by the Trustee.

        "CLASS A-4 NOTEHOLDERS' INTEREST DISTRIBUTION AMOUNT" shall mean, with
respect to any Quarterly Distribution Date, the sum of (a) the amount of
interest accrued at the Class A-4 Rate for the related Interest Accrual Period
on the Outstanding Amount of the Class A-4 Notes immediately prior to such
Quarterly Distribution Date; and (b) the Class A-4 Note Interest Shortfall for
such Quarterly Distribution Date, as based on the actual number of days in such
Interest Accrual Period divided by 360 and rounding the resultant figure to the
fifth decimal place, as determined by the Administrator.

        "CLASS A-4 NOTES" shall mean the $506,375,000 Student Loan Asset-Backed
Notes, Senior Class A-4 issued by the Issuer pursuant to this Indenture,
substantially in the form of Exhibit B-4 hereto.

        "CLASS A-4 RATE" shall mean, for any Interest Accrual Period, other than
the first Interest Accrual Period, the applicable Three-Month LIBOR, plus 0.11%,
as determined by the Administrator. For the first Interest Accrual Period, the
Class A-4 Rate shall be determined by reference to the following formula:

        x + [3/31 * (y-x)] plus 0.11%, as determined by the Administrator.

        where:

        x = Six-Month LIBOR, and

        y = Seven-Month LIBOR.

        CLASS B NOTEHOLDER" shall mean the Person in whose name a Class B Note
is registered in the Note registration books maintained by the Trustee.

        "CLASS B NOTEHOLDERS' INTEREST DISTRIBUTION AMOUNT" shall mean, for any
Quarterly Distribution Date for any Class of Class B Notes, the Class B-1
Noteholders' Interest Distribution Amount or the Class B-2 Noteholders' Interest
Distribution Amount, as applicable, in each case to the extent payable on such
Quarterly Distribution Date.

        "CLASS B NOTES" shall mean, collectively, the Class B-1 Notes and the
Class B-2 Notes, secured on a junior priority to the Class A Obligations.

        "CLASS B PERCENTAGE" shall mean, with respect to any Quarterly
Distribution Date, (a) prior to the Stepdown Date or with respect to any
Quarterly Distribution Date on which a Trigger Event is in effect, zero; or (b)
on and after the Stepdown Date and provided that no Trigger Event is in effect,
a fraction expressed as a percentage, the numerator of which is the aggregate
Outstanding Amount of the Class B Notes and the denominator of which is the
aggregate Outstanding Amount of all Notes, in each case determined on the
Determination Date by the Administrator for that Quarterly Distribution Date.

                                       9
<PAGE>

        "CLASS B PRINCIPAL DISTRIBUTION AMOUNT" shall mean, for any Quarterly
Distribution Date, the product of the Principal Distribution Amount and the
Class B Percentage.

        "CLASS B-1 MATURITY DATE" shall mean the August 2037 Quarterly
Distribution Date.

        "CLASS B-1 NOTE INTEREST SHORTFALL" shall mean, with respect to any
Quarterly Distribution Date, the excess, if any, of (a) the Class B-1
Noteholders' Interest Distribution Amount on the immediately preceding Quarterly
Distribution Date over (b) the amount of interest actually distributed to the
Class B-1 Noteholders on such preceding Quarterly Distribution Date, plus
interest on the amount of such excess interest due to the Class B-1 Noteholders,
to the extent permitted by law, at the interest rate borne by the Class B-1
Notes from such immediately preceding Quarterly Distribution Date to the current
Quarterly Distribution Date, as determined by the Administrator.

        "CLASS B-1 NOTEHOLDER" shall mean the Person in whose name a Class B-1
Note is registered in the Note registration books maintained by the Trustee.

        "CLASS B-1 NOTEHOLDERS' INTEREST DISTRIBUTION AMOUNT" shall mean, with
respect to any Quarterly Distribution Date, the sum of (a) the amount of
interest accrued at the Class B-1 Rate for the related Interest Accrual Period
on the Outstanding Amount of the Class B-1 Notes immediately prior to such
Quarterly Distribution Date; and (b) the Class B-1 Note Interest Shortfall for
such Quarterly Distribution Date, as based on the actual number of days in such
Interest Accrual Period divided by 360 and rounding the resultant figure to the
fifth decimal place, as determined by the Administrator.

        "CLASS B-1 NOTES" shall mean the $43,500,000 Student Loan Asset-Backed
Notes, Subordinate Class B-1 issued by the Issuer pursuant to this Indenture,
substantially in the form of Exhibit B-9 hereto.

        "CLASS B-1 RATE" shall mean, for any Interest Accrual Period, other than
the first Interest Accrual Period, the applicable Three-Month LIBOR, plus 0.15%,
as determined by the Administrator. For the first Interest Accrual Period, the
Class B-1 Rate shall be determined by reference to the following formula:

        x + [3/31 * (y-x)] plus 0.15%, as determined by the Administrator.

        where:

        x = Six-Month LIBOR, and

        y = Seven-Month LIBOR.

        "CLASS B-2 MATURITY DATE" shall mean the August 25, 2037.

        "CLASS B-2 NOTE INTEREST SHORTFALL" shall mean, for each Auction Rate
Distribution Date for the Class B-2 Notes, the excess, if any, of (a) the Class
B-2 Noteholders' Interest Distribution Amount on the immediately preceding
Auction Rate Distribution Date for the Class B-2 Notes over (b) the amount of
interest actually distributed to the Class B-2 Noteholders on such immediately
preceding Auction Rate Distribution Date, plus interest accrued on the amount of
such interest due to the Class B-2 Noteholders, to the extent permitted by law,
at the Class B-2 Rate for the related Interest Accrual Period, from such
immediately preceding Auction Rate Distribution Date to the current Auction Rate
Distribution Date, as determined by the Administrator.

                                       10
<PAGE>

        "CLASS B-2 NOTEHOLDER" shall mean the Person in whose name a Class B-2
Note is registered in the Note registration books maintained by the Trustee.

        "CLASS B-2 NOTEHOLDERS' INTEREST DISTRIBUTION AMOUNT" shall mean, for
each Auction Rate Distribution Date for the Class B-2 Notes, the sum of (a) the
amount of interest accrued at the Class B-2 Rate for the related Interest
Accrual Period on the aggregate outstanding principal balance of the Class B-2
Notes immediately prior to such Auction Rate Distribution Date; and (b) the
Class B-2 Note Interest Shortfall for such Distribution Date, as based on the
actual number of days in such Interest Accrual Period divided by 360, as
determined by the Administrator.

        "CLASS B-2 NOTES" shall mean the $29,625,000 Student Loan Asset-Backed
Notes, Subordinate Class B-2 issued by the Issuer pursuant to this Indenture,
substantially in the form of Exhibit B-10 hereto.

        "CLASS B-2 RATE" shall mean, for any Interest Accrual Period for the
Class B-2 Notes, other than the first Interest Accrual Period, the Auction Note
Interest Rate applicable to such Class for such Interest Accrual Period, and for
the first Interest Accrual Period, the Initial Rate for such Class.

        "CLEARING AGENCY" shall mean an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act. The initial Clearing Agency
shall be The Depository Trust Company and its successor or assigns and the
initial nominee for the Clearing Agency shall be Cede & Co. If (a) the then
Clearing Agency resigns from its functions as depository of the Notes or (b) the
Issuer discontinues use of the Clearing Agency, any other securities depository
which agrees to follow the procedures required to be followed by a securities
depository in connection with the Notes and which is selected by the Issuer with
the consent of the Trustee.

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

        "CODE" shall mean the Internal Revenue Code of 1986, as amended from
time to time. Each reference to a section of the Code herein shall be deemed to
include the United States Treasury Regulations, including applicable temporary
and proposed regulations relating to such section, which are applicable to the
Notes or the use of the proceeds thereof. A reference to any specific section of
the Code shall be deemed also to be a reference to the comparable provisions of
any enactment which supersedes or replaces the Code thereunder from time to
time.

        "COLLECTION FUND" shall mean the Fund by that name created in Section
5.01(c) hereof and further described in Section 5.04 hereof.

                                       11
<PAGE>

        "COLLECTION PERIOD" shall mean, with respect to the first Quarterly
Distribution Date, the period beginning on May 1, 2007 and ending on October 31,
2007, and with respect to each subsequent Quarterly Distribution Date, the
Collection Period shall mean the three calendar months immediately preceding
such Quarterly Distribution Date.

        "COMMISSION" shall mean the Securities and Exchange Commission.

        "CONTRACT OF INSURANCE" shall mean the contract of insurance between the
Eligible Lender and the Secretary.

        "COSTS OF ISSUANCE ACCOUNT" shall mean the Account by that name created
in Section 5.01(a) hereof within the Acquisition Fund and further described in
Section 5.02 hereof, including any Subaccounts created therein.

        "COUNTERPARTY" shall mean the counterparties to any Derivative Product
entered into pursuant to Section 3.03 hereof.

        "COUNTERPARTY PAYMENTS" shall mean any payment to be made to, or for the
benefit of, the Issuer under a Derivative Product.

        "CUSTODIAN AGREEMENT" shall mean, collectively or individually as the
context may require, the custodian agreements with the Master Servicer and each
Subservicer or other custodian or bailee related to Financed Eligible Loans.

        "CUTOFF DATE" shall mean (i) with respect to the initial pool of
Financed Eligible Loans, April 30, 2007; and (ii) with respect to subsequently
acquired Eligible Loans, the date on which such loans are transferred to the
Issuer.

        "DATE OF ISSUANCE" shall mean May 22, 2007.

        "DELAWARE TRUSTEE" shall mean M&T Trust Company of Delaware, a Delaware
banking corporation, solely in its capacity as the trustee of the Issuer under
the Trust Agreement.

        "DELAWARE TRUSTEE FEE" shall mean (a) the Delaware Trustee's initial
setup fee plus the initial $2,500 annual fee and (b) an annual fee equal to
$2,500, payable on each May Quarterly Distribution Date, beginning on the May
2008 Quarterly Distribution Date.

        "DEPARTMENT" shall mean the United States Department of Education, an
agency of the Federal government.

        "DEPARTMENT REBATE FUND" shall mean the Fund by that name created in
Section 5.01(d) hereof and further described in Section 5.06 hereof, including
any Accounts and Subaccounts created therein.

        "DEPARTMENT REBATE INTEREST AMOUNT" means, with respect to any date of
determination, the greater of (a)(i) the expected amount of interest paid by
borrowers on the Financed Student Loans first disbursed on or after April 1,
2006 that exceeds the Special Allowance Payment support levels applicable to
such Financed Student Loans under the Higher Education Act since the prior
Department Rebate Payment Date less (ii) the amount of accrued Interest Subsidy
Payments or Special Allowance Payments due to the Issuer since the prior
Department Rebate Payment Date and (b) $0.00.

                                       12
<PAGE>

        "DEPARTMENT REBATE PAYMENT DATE" means the quarterly date that (i) the
Department Rebate Interest Amount is due and payable to the Department or (ii)
the Department offsets the Department Rebate Interest Amount from Interest
Subsidy Payments or Special Allowance Payments due to the Issuer.

        "DEPOSITOR" shall mean Nelnet Student Loan Funding, LLC, and its
successors and assigns and any other Person or Persons as may become a Depositor
pursuant to the terms of the Trust Agreement.
        "DERIVATIVE PRODUCT" shall mean any Derivative Product entered into
subsequent to the Date of Issuance subject to the provisions of Section 3.03
hereof.

        "DERIVATIVE VALUE" shall mean the value of a Derivative Product, if any,
to the Counterparty, provided that such value is defined and calculated in
substantially the same manner as amounts are defined and calculated pursuant to
the applicable provisions of an ISDA Master Agreement.

        "DETERMINATION DATE" shall mean, with respect to any Distribution Date
or the Monthly Servicing Payment Date, as applicable, the second Business Day
preceding such Distribution Date or Monthly Servicing Payment Date.

        "DISTRIBUTION DATE" shall mean (i) each Auction Rate Distribution Date
and (ii) each Quarterly Distribution Date.

        "ELIGIBLE LENDER" shall mean (i) Zions First National Bank, in its
capacity as eligible lender trustee hereunder and under the terms of the
Eligible Lender Trust Agreement, and (ii) any "eligible lender," as defined in
the Higher Education Act, and which has received an eligible lender designation
from the Secretary with respect to Eligible Loans made under the Higher
Education Act.

        "ELIGIBLE LENDER TRUST AGREEMENT" shall mean the Eligible Lender Trust
Agreement, dated as of May 1, 2007, between the Issuer and Zions First National
Bank, as eligible lender trustee, as amended from time to time.

        "ELIGIBLE LOAN" shall mean any loan made to finance post-secondary
education that is made under the Higher Education Act, provided that if, after
any reauthorization or amendment of the Higher Education Act, loans authorized
thereunder, including, without limitation, their benefits, any provisions, or
the servicing thereof, are materially different from loans so authorized prior
to such reauthorization or amendment, such loans authorized after such
reauthorization or amendment shall not constitute Eligible Loans unless a Rating
Confirmation is obtained.

        "ELIGIBLE LOAN ACQUISITION CERTIFICATE" shall mean a certificate signed
by an Authorized Representative in substantially the form attached as Exhibit A
hereto.

                                       13
<PAGE>

        "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as amended.

        "EVENT OF BANKRUPTCY" shall mean (a) the Issuer shall have commenced a
voluntary case or other proceeding seeking liquidation, reorganization or other
relief with respect to itself or its debts under any bankruptcy, insolvency or
other similar law now or hereafter in effect or seeking the appointment of a
trustee, receiver, liquidator, custodian or other similar official of it or any
substantial part of its property, or shall have made a general assignment for
the benefit of creditors, or shall have declared a moratorium with respect to
its debts or shall have failed generally to pay its debts as they become due, or
shall have taken any action to authorize any of the foregoing; or (b) an
involuntary case or other proceeding shall have been commenced against the
Issuer seeking liquidation, reorganization or other relief with respect to it or
its debts under any bankruptcy, insolvency or other similar law now or hereafter
in effect or seeking the appointment of a trustee, receiver, liquidator,
custodian or other similar official of it or any substantial part of its
property provided such action or proceeding is not dismissed within 60 days.

        "EVENT OF DEFAULT" shall have the meaning specified in Article VI
hereof.

        "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended.

        "FINANCED" or "FINANCING" when used with respect to Eligible Loans,
shall mean or refer to Eligible Loans (a) acquired by the Issuer with balances
in the Acquisition Fund or otherwise deposited in or accounted for in the
Acquisition Fund or otherwise constituting a part of the Trust Estate and (b)
Eligible Loans substituted or exchanged for Financed Eligible Loans, but does
not include Eligible Loans released from the lien of this Indenture and sold or
transferred, to the extent permitted by this Indenture.

        "FISCAL YEAR" shall mean the fiscal year of the Issuer (initially
January 1 to December 31) as established from time to time.

        "FITCH" shall mean Fitch Inc., its successors and assigns.

        "FUNDS" shall mean each of the Funds created pursuant to Section 5.01
hereof.

        "GUARANTEE" or "GUARANTEED" shall mean, with respect to an Eligible
Loan, the insurance or guarantee by a Guaranty Agency pursuant to such Guaranty
Agency's Guarantee Agreement of the maximum percentage of the principal of and
accrued interest on such Eligible Loan allowed by the terms of the Higher
Education Act with respect to such Eligible Loan at the time it was originated
and the coverage of such Eligible Loan by the federal reimbursement contracts,
providing, among other things, for reimbursement to such Guaranty Agency for
payments made by it on defaulted Eligible Loans insured or guaranteed by such
Guaranty Agency of at least the minimum reimbursement allowed by the Higher
Education Act with respect to a particular Eligible Loan.

        "GUARANTEE AGREEMENTS" shall mean a guaranty or lender agreement between
the Trustee or the Eligible Lender Trustee and any Guaranty Agency, and any
amendments thereto.

                                       14
<PAGE>

        "GUARANTY AGENCY" shall mean any entity authorized to guarantee student
loans under the Higher Education Act and with which the Trustee or the Eligible
Lender Trustee maintains a Guarantee Agreement.

        "HIGHER EDUCATION ACT" shall mean the Higher Education Act of 1965, as
amended or supplemented from time to time, or any successor federal act and all
regulations, directives, bulletins and guidelines promulgated from time to time
thereunder.

        "HIGHEST PRIORITY OBLIGATIONS" shall mean at any time when Class A
Obligations are Outstanding, the Class A Obligations, and at any time when no
Class A Obligations are Outstanding, the Class B Notes.

        "INDENTURE" shall mean this Indenture of Trust, including all
supplements and amendments hereto.

        "INDEPENDENT" shall mean, when used with respect to any specified
Person, that the Person (a) is in fact independent of the Issuer, any other
obligor upon the Notes, the Seller and any Affiliate of any of the foregoing
Persons; (b) does not have any direct financial interest or any material
indirect financial interest in the Issuer, any such other obligor, the 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, placement
agent, trustee, partner, director or person performing similar functions.

        "INDEPENDENT CERTIFICATE" shall mean a certificate or opinion to be
delivered to the Trustee under the circumstances described in, and otherwise
complying with, the applicable requirements of this Indenture, made by an
Independent appraiser or other expert appointed by an Issuer Order and approved
by the Trustee in the exercise of reasonable care, and such opinion or
certificate shall state that the signer has read the definition of "Independent"
in this Indenture and that the signer is Independent within the meaning thereof.

        "INDEX MATURITY" shall mean (i) for Three-Month LIBOR, three months,
(ii) for Six-Month LIBOR, six months and (ii) for Seven-Month LIBOR, seven
months.

        "INITIAL PARITY RATIO" shall mean the Parity Ratio as of the Closing
Date.

        "INITIAL POOL BALANCE" shall mean the Pool Balance as of the Closing
Date.

        "INSURANCE" or "INSURED" or "INSURING" shall mean, with respect to an
Eligible Loan, the insuring by the Secretary (as evidenced by a Certificate of
Insurance or other document or certification issued under the provisions of the
Higher Education Act) under the Higher Education Act of 100% of the principal of
and accrued interest on such Eligible Loan.

        "INTEREST ACCRUAL PERIOD" shall mean (a) with respect to each Class of
LIBOR Rate Notes, initially, the period commencing on the Date of Issuance and
ending on November 25, 2007, and thereafter, with respect to each Quarterly
Distribution Date, the period beginning on and including the immediately
preceding Quarterly Distribution Date and ending on the day immediately
preceding such current Quarterly Distribution Date and (b) with respect to the
Auction Rate Notes, the period described as such in Appendix A hereto.

                                       15
<PAGE>

        "INTEREST BENEFIT PAYMENT" shall mean an interest payment on Eligible
Loans received pursuant to the Higher Education Act and an agreement with the
federal government, or any similar payments.

        "INVESTMENT AGREEMENT" shall mean, collectively or individually as the
context may require, (a) the Investment Agreement between the Trustee and
Transamerica Occidental Life Insurance Company relating to the investment of
funds in the Trust Estate, (b) the Investment Agreement between the Trustee and
Trinity Plus Funding Company, LLC relating to the investment of funds in the
Trust Estate and (c) any other investment agreement approved by the Rating
Agencies. The Trustee shall provide notice to each Rating Agency of any
amendment to or transfer of an Investment Agreement. The issuance by the Rating
Agencies of the ratings on the Notes on the Date of Issuance shall serve as the
Rating Confirmation required with respect to the Investment Agreements set forth
in clauses (a) and (b) above.

        "INVESTMENT SECURITIES" shall mean:

                (a) direct obligations of, or obligations on which the timely
        payment of the principal of and interest on which are unconditionally
        and fully guaranteed by, the United States of America;

                (b) interest-bearing time or demand deposits, certificates of
        deposit or other similar banking arrangements with a maturity of 12
        months or less with any bank, trust company, national banking
        association or other depository institution, including those of the
        Trustee, provided that, at the time of deposit or purchase such
        depository institution has commercial paper which is rated "A-1+" by S&P
        and "F1+" by Fitch and has the required ratings from Moody's
        corresponding to the duration of such investment set forth below;

                (c) interest-bearing time or demand deposits, certificates of
        deposit or other similar banking arrangements with a maturity of 24
        months or less, but more than 12 months, with any bank, trust company,
        national banking association or other depository institution, including
        those of the Trustee and any of its affiliates, provided that, at the
        time of deposit or purchase such depository institution has senior debt
        rated "A" or higher by S&P and "AA-" or higher by Fitch, if commercial
        paper is outstanding, commercial paper which is rated "A-1+" by S&P and
        "F1+" by Fitch and has the required ratings from Moody's corresponding
        to the duration of such investment set forth below;

                (d) interest-bearing time or demand deposits, certificates of
        deposit or other similar banking arrangements with a maturity of more
        than 24 months with any bank, trust company, national banking
        association or other depository institution, including those of the
        Trustee and any of its affiliates, provided that, at the time of deposit
        or purchase such depository institution has senior debt rated "AA" or
        higher by S&P and "AA" or higher by Fitch, if commercial paper is
        outstanding, commercial paper which is rated "A-1+" by S&P, "P-1" by
        Moody's and "F1+" by Fitch and has the required ratings from Moody's
        corresponding to the duration of such investment set forth below;

                                       16
<PAGE>

                (e) bonds, debentures, notes or other evidences of indebtedness
        issued or guaranteed by any of the following agencies: Federal Farm
        Credit Banks, Federal Home Loan Mortgage Corporation; the Export-Import
        Bank of the United States; the Federal National Mortgage Association;
        the Farmers Home Administration; Federal Home Loan Banks provided such
        obligation is rated "AAA" by S&P, "Aaa" by Moody's and "AAA" by Fitch;
        or any agency or instrumentality of the United States of America which
        shall be established for the purposes of acquiring the obligations of
        any of the foregoing or otherwise providing financing therefor;

                (f) repurchase agreements and reverse repurchase agreements,
        other than overnight repurchase agreements and overnight reverse
        repurchase agreements, with banks, including the Trustee and any of its
        affiliates, which are members of the Federal Deposit Insurance
        Corporation or firms which are members of the Securities Investors
        Protection Corporation, in each case whose outstanding, unsecured debt
        securities are rated no lower than two subcategories below the highest
        rating on any Class of Outstanding Notes by S&P and Fitch, if commercial
        paper is outstanding, commercial paper which is rated "A-1+" by S&P and
        "F1+" by Fitch and has the required ratings from Moody's corresponding
        to the duration of such investment set forth below;

                (g) overnight repurchase agreements and overnight reverse
        repurchase agreements at least 101% collateralized by securities
        described in subparagraph (a) of this definition and with a
        counterparty, including the Trustee and any of its affiliates, that has
        senior debt rated "AA" or higher by S&P and "AA-" or higher by Fitch, if
        commercial paper is outstanding, commercial paper which is rated "A-1+"
        by S&P and "F1+" by Fitch and has the required ratings from Moody's
        corresponding to the duration of such investment set forth below, or a
        counterparty approved in writing by S&P, Moody's and Fitch,
        respectively;

                (h) investment agreements or guaranteed investment contracts,
        which may be entered into by and among the Issuer and/or the Trustee and
        any bank, bank holding company, corporation or any other financial
        institution, including the Trustee and any of its affiliates, whose
        outstanding (i) commercial paper is rated "A-1+" by S&P and "F1+" by
        Fitch for agreements or contracts with a maturity of 12 months or less
        and has the required ratings from Moody's corresponding to the duration
        of such investment set forth below; (ii) unsecured long-term debt is
        rated no lower than two subcategories below the highest rating on any
        Class of Outstanding Notes by S&P and Fitch and, if commercial paper is
        outstanding, commercial paper which is rated "A-1+" by S&P and "F1+" by
        Fitch for agreements or contracts with a maturity of 24 months or less,
        but more than 12 months and has the required ratings from Moody's
        corresponding to the duration of such investment set forth below, or
        (iii) unsecured long-term debt which is rated no lower than two
        subcategories below the highest rating on any Class of Outstanding Notes
        by S&P and Fitch and, if commercial paper is outstanding, commercial
        paper which is rated "A-1+" by S&P and "F1+" by Fitch for agreements or
        contracts with a maturity of more than 24 months and has the required
        ratings from Moody's corresponding to the duration of such investment
        set forth below, or, in each case, by an insurance company whose
        claims-paying ability is so rated;

                                       17
<PAGE>

                (i) "tax exempt bonds" as defined in Section 150(a)(6) of the
        Code, other than "specified private activity bonds" as defined in
        Section 57(a)(5)(C) of the Code, that are rated in the highest category
        by S&P and Fitch for long-term or short-term debt or shares of a
        so-called money market or mutual fund rated "AAAm/AAAm-G" or higher by
        S&P, and "AAA/F1+" by Fitch and has the required ratings from Moody's
        corresponding to the duration of such investment set forth below, that
        do not constitute "investment property" within the meaning of Section
        148(b)(2) of the Code, provided that the fund has all of its assets
        invested in obligations of such rating quality;

                (j) commercial paper, including that of the Trustee and any of
        its affiliates, which is rated in the single highest classification,
        "A-1+" by S&P "F1+" by Fitch and has the required ratings from Moody's
        corresponding to the duration of such investment set forth below, and
        which matures not more than 270 days after the date of purchase;

                (k) investments in a money market fund rated at least "AAAm" or
        "AAAm-G" by S&P, "Aaa" by Moody's AAA/V1+ by Fitch, including funds for
        which the Trustee or an affiliate thereof acts as investment advisor or
        provides other similar services for a fee;

                (l) any Investment Agreement; and

                (m) any other investment with a Rating Confirmation from each
        Rating Agency.

        Each Investment Security or the provider of such Investment Security
(other than those described in paragraphs (a), (e), (k) and (l) of this
definition) shall have the following Moody's long-term and or short-term ratings
corresponding to the duration of such investment:

                 MAXIMUM MATURITY                      MINIMUM RATINGS
                 ----------------                      ---------------

                 One Month                             "A2" or "Prime-1"
                 Three Months                          "A1" and "Prime-1"
                 Six Months                            "Aa3" and "Prime-1"
                 Greater than Six Months               "Aaa" and "Prime-1"

        "ISDA MASTER AGREEMENT" shall mean the ISDA Master Agreement, copyright
1992, as amended from time to time, and as in effect with respect to any
Derivative Product.

        "ISSUER" shall mean Nelnet Student Loan Trust 2007-1, a statutory trust
organized and existing under the laws of the State, and any successor thereto.

        "ISSUER DERIVATIVE PAYMENT" shall mean any payment required to be made
by or on behalf of the Issuer to a Counterparty pursuant to a Derivative
Product.

                                       18
<PAGE>

        "ISSUER ORDER" shall mean a written order signed in the name of the
Issuer by an Authorized Representative.

        "LIBOR" shall mean Three-Month LIBOR, Six-Month LIBOR or Seven-Month
LIBOR, as applicable.

        "LIBOR DETERMINATION DATE" shall mean, for each Interest Accrual Period,
the second Business Day before the beginning of that Interest Accrual Period.

        "LIBOR RATE NOTES" shall mean the Class A-1 Notes, the Class A-2 Notes,
the Class A-3 Notes, the Class A-4 Notes and the Class B-1 Notes.

        "LIQUIDATED FINANCED ELIGIBLE LOAN" shall mean any defaulted Financed
Eligible Loan liquidated by the Master Servicer or a Subservicer (which shall
not include any Financed Eligible Loan on which payments are received from a
Guaranty Agency) or which such Master Servicer's or Subservicer has, after using
all reasonable efforts to realize upon such Financed Eligible Loan, determined
to charge off.

        "LIQUIDATION PROCEEDS" shall mean, with respect to any Liquidated
Financed Eligible Loan which became a Liquidated Financed Eligible Loan in
accordance with the Master Servicer's or a Subservicer's customary servicing
procedures, the moneys collected in respect of the liquidation thereof from
whatever source, net of the sum of any amounts expended by such Master Servicer
or Subservicer in connection with such liquidation and any amounts required by
law to be remitted to the obligor on such Liquidated Financed Eligible Loan.

        "MASTER PROMISSORY NOTE" shall mean a Master Promissory Note in the form
mandated by Section 432(m)(1) of the Higher Education Act, as added by Public
Law No: 105-244 ss. 427, 112 Stat. 1702 (1998), as amended by Public Law No:
106-554 (enacted December 21, 2000) and as codified in 20 U.S.C. ss. 1082(m)(1).

        "MASTER SERVICER" shall mean National Education Loan Network, Inc. and
any other master servicer or successor master servicer selected by the Issuer,
including an affiliate of the Issuer, so long as the Issuer obtains a Rating
Confirmation as to each such other master servicer.

        "MASTER SERVICING AGREEMENT" shall mean (a) the Master Servicing
Agreement, dated as of May 1, 2007, among the Issuer, the Depositor, the
Administrator and the Master Servicer, as amended from time to time, and (b) any
replacement master servicing agreement among the Issuer, the Administrator and
any other Master Servicer.

        "MATURITY" when used with respect to any Note, shall mean the date on
which the principal thereof becomes due and payable as therein or herein
provided, whether at its Note Final Maturity Date, by earlier prepayment or
purchase, by declaration of acceleration, or otherwise.

        "MINIMUM PURCHASE AMOUNT" shall mean, on any Quarterly Distribution
Date, an amount that would be sufficient to (a) reduce the Outstanding Amount of
each Class of Notes on such Quarterly Distribution Date to zero; (b) pay to the
respective Registered Owners the Class A Noteholders' Interest Distribution
Amount and the Class B Noteholders' Interest Distribution Amount payable on such
Quarterly Distribution Date; (c) pay any Servicing Fees and Carryover Servicing
Fees, Administration Fees, Trustee Fees and Delaware Trustee Fees due and owing;
(d) pay any Issuer Derivative Payments due and owing; and (e) in the case of
Auction Rate Notes, pay any Auction Rate Carry-Over Amounts and interest on such
amounts.

                                       19
<PAGE>

        "MONTHLY SERVICING PAYMENT DATE" shall mean the twenty-fifth (25th) day
of each calendar month or, if such day is not a Business Day, the immediately
succeeding Business Day, commencing on June 25, 2007.

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

        "MPN LOAN" shall mean a loan originated pursuant to the Federal Family
Education Loan Program and the Higher Education Act and evidenced by a Master
Promissory Note.

        "NOTE FINAL MATURITY DATE" for a Class of Notes or for any Note of such
Class, as the context may require, shall mean the Class A-1 Maturity Date, the
Class A-2 Maturity Date, the Class A-3 Maturity Date, the Class A-4 Maturity
Date, the Class B-1 Maturity Date or the Class B-2 Maturity Date, as applicable.

        "NOTEHOLDER" shall mean, (a) with respect to a book-entry Note, the
Person who is the owner of such book-entry Note, as reflected on the books of
the Clearing Agency, or on the books of a Person maintaining an account with
such Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant, in each case in accordance with the rules of such Clearing
Agency); and (b) with respect to Notes held in definitive form pursuant to
Section 2.09 hereof, the Person in whose name a Note is registered in the Note
registration books of the Trustee.

        "NOTES" shall mean, collectively, the Class A Notes and the Class B
Notes.

        "OBLIGATIONS" shall mean, collectively, the Class A Obligations and the
Class B Notes.

        "OPINION OF COUNSEL" shall mean (a) with respect to the Issuer one or
more written opinions of counsel who may, except as otherwise expressly provided
in the Indenture, be employees of or counsel to the Delaware Trustee, the Issuer
the Seller or an Affiliate of the Seller and who shall be reasonably
satisfactory to the Trustee, and which opinion or opinions shall be addressed to
the Trustee, as trustee, shall comply with any applicable requirements of the
Trust Indenture Act and shall be in form and substance satisfactory to the
Trustee; and (b) with respect to the Seller, the Administrator, the Master
Servicer or a Subservicer, one or more written opinions of counsel who may be an
employee of or counsel to the Seller, the Administrator, the Master Servicer or
a Subservicer, which counsel shall be acceptable to the Trustee and the Delaware
Trustee.

        "OPTIONAL PURCHASE DATE" shall have the meaning set forth in Section
10.03 hereof.

        "OUTSTANDING" shall mean, when used in connection with any Note, a Note
which has been executed and delivered pursuant to this Indenture which at such
time remains unpaid as to principal or interest, excluding Notes which have been
replaced pursuant to Section 2.03 or 2.04 hereof and when used in connection
with a Derivative Product, a Derivative Product which has not expired or been
terminated, unless provision has been made for such payment pursuant to Section
10.02 hereof.

                                       20
<PAGE>

        "OUTSTANDING AMOUNT" shall mean, as of any date of determination, the
aggregate principal amount of all Notes Outstanding or the applicable Class or
Classes of Notes, as the case may be, Outstanding at such date of determination.

        "PARITY RATIO" shall mean, on any Quarterly Distribution Date, (a) the
Pool Balance (including all accrued interest on the Financed Eligible Loans)
plus the amounts on deposit in the Reserve Fund as of the end of the related
Collection Period divided by (b) the Outstanding Amount of the Notes, after
giving effect to distributions to be made on that Quarterly Distribution Date.
The Parity Ratio shall be calculated by the Administrator and certified to the
Trustee upon which the Trustee may conclusively rely with no duty to further
examine or determine such information.

        "PERSON" shall mean an individual, corporation, partnership, joint
venture, association, joint stock company, trust, limited liability company,
unincorporated organization or government or agency, or political subdivision
thereof.

        "POOL BALANCE" shall mean as of any date (a) the aggregate principal
balance of the Financed Eligible Loans on such date (including accrued interest
thereon to the extent such interest is expected to be capitalized), after giving
effect to the following, without duplication: (i) all payments received by the
Issuer through such date from or on behalf of obligors on such Financed Eligible
Loans; (ii) all Purchase Amounts on Financed Eligible Loans received by the
Issuer through such date from the Seller, the Master Servicer or a Subservicer;
(iii) all Liquidation Proceeds and Realized Losses on Financed Eligible Loans
liquidated through such date; (iv) the aggregate amount of adjustments to
balances of Financed Eligible Loans permitted to be effected by the Master
Servicer or a Subservicer under the Master Servicing Agreement or its related
Subservicing Agreement, if any, recorded through such date; and (v) the
aggregate amount by which reimbursements by Guarantee Agencies of the unpaid
principal balance of defaulted Financed Eligible Loans through such date are
reduced from 100% to 97%, or other applicable percentage as required by the risk
sharing provisions of the Higher Education Act; plus (b) moneys on deposit in
the Capitalized Interest Fund and the Prefunding Account of the Acquisition Fund
(excluding amounts that will become Available Funds on the next Quarterly
Distribution Date). The Pool Balance shall be calculated by the Administrator
and certified to the Trustee, upon which the Trustee may conclusively rely with
no duty to further examine or determine such information.

        "PREFUNDING ACCOUNT" shall mean the Account by that name created in
Section 5.01(a) hereof within the Acquisition Fund and further described in
Section 5.02 hereof, including any Subaccounts created therein.

        "PRINCIPAL DISTRIBUTION AMOUNT" shall mean, as determined by the
Administrator, (a) with respect to the initial Quarterly Distribution Date, the
amount by which the sum of the Outstanding Amount of the Notes exceeds the
Adjusted Pool Balance as of the last day of the initial Collection Period; and
(b) with respect to each subsequent Quarterly Distribution Date, the excess of
(i) the Adjusted Pool Balance as of the last day of the Collection Period
preceding the related Collection Period, less (ii) the Adjusted Pool Balance as
of the last day of the related Collection Period, plus the amount, if any, of
the Principal Distribution Amount due on the prior Quarterly Distribution Date
that was not paid. Further, on the Note Final Maturity Date for a Class of
Notes, the Principal Distribution Amount on that date also shall include the
amount needed to reduce the Outstanding Amount of such Class of Notes to zero.

                                       21
<PAGE>

        "PRINCIPAL OFFICE" shall mean the principal office of the party
indicated, as set forth in Section 9.01 hereof or elsewhere in this Indenture.

        "PRIORITY TERMINATION PAYMENT" shall mean, with respect to a Derivative
Product, any termination payment payable by the Issuer under such Derivative
Product relating to an early termination of such Derivative Product by the
Counterparty, as the non-defaulting party, following (i) a default in the
payment of a regularly scheduled payment by the Issuer thereunder, (ii) the
occurrence of an Event of Default specified in Section 6.01(d) hereof or (iii)
the Trustee's taking any action hereunder to liquidate the Trust Estate
following an Event of Default and acceleration of the Notes pursuant to Section
6.04 hereof.

        "PROGRAM" shall mean the Depositor's program for the origination and the
purchase of Eligible Loans, as the same may be modified from time to time.

        "PURCHASE AMOUNT" with respect to any Financed Eligible Loan shall mean
the amount required to prepay in full such Financed Eligible Loan under the
terms thereof including all accrued interest thereon and any unamortized
premium, it being acknowledged that any accrued and unpaid Interest Subsidy
Payments or Special Allowance Payments will continue to be payable to the
Trustee and constitute part of the Trust Estate.

        "QUARTERLY DISTRIBUTION DATE" shall mean the twenty-fifth (25th) day of
February, May, August and November or, if such day is not a Business Day, the
immediately succeeding Business Day, commencing on November 26, 2007.

        "RATING" shall mean one of the rating categories of Fitch, Moody's and
S&P or any other Rating Agency, provided Fitch, Moody's and S&P or any other
Rating Agency, as the case may be, is currently rating the Notes.

        "RATING AGENCY" shall mean each of Fitch, Moody's and S&P and their
successors and assigns or any other rating agency requested by the Issuer to
maintain a Rating on any of the Notes.

        "RATING CONFIRMATION" shall mean a letter from each Rating Agency then
providing a Rating for any of the Notes, confirming that a proposed action,
failure to act, or other event specified therein will not, in and of itself,
result in a downgrade of any of the Ratings then applicable to the Notes, or
cause any Rating Agency to suspend, withdraw or qualify the Ratings then
applicable to the Notes.

        "REALIZED LOSS" shall mean the excess of the principal balance
(including any interest that had been or had been expected to be capitalized) of
any Liquidated Financed Eligible Loan over Liquidation Proceeds with respect to
such Financed Eligible Loan to the extent allocable to principal (including any
interest that had been or had been expected to be capitalized).

                                       22
<PAGE>

        "RECORD DATE" shall mean, with respect to a Distribution Date, the close
of business on the day preceding such Distribution Date.

        "REDEMPTION DATE" shall have the meaning assigned to such term in
Section 5.04(g) hereof.

        "REFERENCE BANKS" shall mean, with respect to a determination of LIBOR
for any Interest Accrual Period by the Administrator or the Auction Agent, as
applicable, four major banks in the London interbank market selected by the
Administrator or the Auction Agent, as applicable.

        "REGISTERED OWNER" shall mean any Noteholder, and, with respect to a
Derivative Product, any Counterparty, unless the context otherwise requires.

        "REGULATIONS" shall mean the Regulations promulgated from time to time
by the Secretary or any Guaranty Agency guaranteeing Financed Eligible Loans.

        "RESERVE FUND" shall mean the Fund by that name created in Section
5.01(e) hereof and further described in Section 5.05 hereof, including any
Accounts and Subaccounts created therein.

        "S&P" shall mean Standard & Poor's Ratings Group, a Division of The
McGraw-Hill Companies, Inc., its successors and assigns.

        "SECRETARY" shall mean the Secretary of the United States Department of
Education or any successor to the pertinent functions thereof under the Higher
Education Act.

        "SELLER" shall mean Nelnet Student Loan Funding, LLC, and its successors
and assigns.

        "SERVICER'S REPORT" shall mean the servicer reports to be furnished to
the Issuer by the Master Servicer or a Subservicer pursuant to the Master
Servicing Agreement or its related Subservicing Agreement.

        "SERVICING FEE" shall mean the fees and expenses due to the Master
Servicer and any Subservicer under the terms of the Master Servicing Agreement
or its related Subservicing Agreement and the fees and expenses due to any
custodian under the terms of a Custodian Agreement.

        "SEVEN-MONTH LIBOR" shall have the meaning ascribed to such term under
the definition of "Three-Month LIBOR."

        "SIX-MONTH LIBOR" shall have the meaning ascribed to such term under the
definition of "Three-Month LIBOR."

        "SPECIAL ALLOWANCE PAYMENTS" shall mean the special allowance payments
authorized to be made by the Secretary by Section 438 of the Higher Education
Act, or similar allowances, if any, authorized from time to time by federal law
or regulation.

                                       23
<PAGE>

        "SPECIFIED RESERVE FUND BALANCE" shall mean, with respect to any
Quarterly Distribution Date, the greater of (a) 0.25% of the Pool Balance as of
the close of business on the last day of the related Collection Period; and (b)
0.15% of the Initial Pool Balance, provided that in no event will such balance
exceed the sum of the Outstanding Amount of the Notes and provided further, that
such Specified Reserve Fund Balance may be reduced with a Rating Confirmation.
The Specified Reserve Fund Balance shall be calculated by the Administrator and
certified to the Trustee, upon which certification the Trustee may conclusively
rely with no duty to further examine or determine such information.

        "STATE" shall mean the State of Delaware.

        "STEPDOWN DATE" shall mean the earlier to occur of (a) the May 2013
Quarterly Distribution Date and (b) the first date on which all of the Class A
Notes are no longer Outstanding.

        "STUDENT LOAN PURCHASE AGREEMENT" shall mean, collectively or
individually as the context may require, (a) the Loan Purchase Agreement, dated
as of May 1, 2007, between the Issuer and the Seller and (b) each additional
student loan purchase agreement entered into between the Issuer and the Seller
for the purchase of Eligible Loans which constitute "add-on consolidation
loans."

        "SUBACCOUNT" shall mean any of the subaccounts which may be created and
established within any Account by this Indenture.

        "SUBSERVICER" shall mean Nelnet, Inc., and any other additional
subservicer or successor subservicer selected by the Issuer, including an
affiliate of the Issuer, so long as the Issuer obtains a Rating Confirmation as
to each such other subservicer.

        "SUBSERVICING AGREEMENT" shall mean, collectively or individually as the
context may require, (a) the Nelnet, Inc. Subservicing Agreement, dated as of
May 1, 2007, between the Master Servicer and Nelnet, Inc., as subservicer; and
(b) any subservicing agreement between the Master Servicer and any other
Subservicer.

        "SUPPLEMENTAL INDENTURE" shall mean an agreement supplemental hereto
executed pursuant to Article VIII hereof.

        "TELERATE PAGE 3750" shall mean the display page so designated on the
Telerate Service or its successor or assign (or such other page as may replace
that page on that service for the purpose of displaying comparable rates or
prices).

        "TERMINATION PAYMENT" shall mean, with respect to a Derivative Product,
any termination payment payable by the Issuer under such Derivative Product
relating to an early termination of such Derivative Product by the Counterparty,
as the non-affected party or non-defaulting party, after the occurrence of a
termination event or event of default specified in such Derivative Product,
including any Priority Termination Payment.

                                       24
<PAGE>

        "THREE-MONTH LIBOR," "SIX-MONTH LIBOR" or "SEVEN-MONTH LIBOR" shall
mean, with respect to any Interest Accrual Period, the London interbank offered
rate for deposits in U.S. dollars having the applicable Index Maturity as it
appears on Telerate Page 3750 as of 11:00 a.m., London time, on the related
LIBOR Determination Date as determined by the Administrator. If this rate does
not appear on Telerate Page 3750, the rate for that day will be determined on
the basis of the rates at which deposits in U.S. dollars, having the applicable
Index Maturity and in a principal amount of not less than U.S. $1,000,000, are
offered at approximately 11:00 a.m., London time, on that LIBOR Determination
Date, to prime banks in the London interbank market by the Reference Banks. The
Administrator or the Trustee, as applicable, will request the principal London
office of each Reference Bank to provide a quotation of its rate. If the
Reference Banks provide at least two quotations, the rate for that day will be
the arithmetic mean of the quotations. If the Reference Banks provide fewer than
two quotations, the rate for that day will be the arithmetic mean of the rates
quoted by major banks in New York City, selected by the Administrator or the
Trustee, as applicable, at approximately 11:00 a.m., New York time, on that
LIBOR Determination Date, for loans in U.S. dollars to leading European banks
having the applicable Index Maturity and in a principal amount of not less than
U.S. $1,000,000. If the banks selected as described above are not providing
quotations, Three-Month LIBOR, Six-Month LIBOR or Seven-Month LIBOR, as the case
may be, in effect for the applicable Interest Accrual Period will be Three-Month
LIBOR, Six-Month LIBOR or Seven-Month LIBOR, as the case may be, in effect for
the previous Interest Accrual Period.

        "TRIGGER EVENT" shall mean, on any Quarterly Distribution Date while any
of the Class A Notes are Outstanding, that (a) the Outstanding Amount of the
Notes, after giving effect to distributions to be made on that Quarterly
Distribution Date, would exceed the Pool Balance plus amounts on deposit in the
Reserve Fund as of the end of the related Collection Period or (b) the Financed
Eligible Loans have not been sold pursuant to Section 10.03 or 10.04 hereof when
permitted or required herein.

        "TRUST AGREEMENT" shall mean the Trust Agreement, dated as of May 1,
2007, by and between the Depositor and the Delaware Trustee, as may be amended
pursuant to the terms thereof.

        "TRUST AUCTION DATE" shall have the meaning set forth in Section 10.04
hereof.

        "TRUST ESTATE" shall mean the property described as such in the granting
clauses hereto.

        "TRUST INDENTURE ACT" shall mean the Trust Indenture Act of 1939, as
amended, and as in force at the date as of which this Indenture was executed,
except as provided in Section 8.05 hereof.

        "TRUSTEE" shall mean Zions First National Bank, acting in its capacity
as Trustee under this Indenture, or any successor trustee designated pursuant to
this Indenture.

        "TRUSTEE FEE" shall mean an amount equal to the annual amount set forth
in the Trustee Fee Letter, dated May 1, 2007. Such fee shall be in satisfaction
of the Trustee's compensation as trustee under this Indenture and as eligible
lender trustee under the Eligible Lender Trust Agreement.

        Words importing the masculine gender include the feminine gender, and
words importing the feminine gender include the masculine gender. Words
importing persons include firms, associations and corporations. Words importing
the singular number include the plural number and vice versa. Additional terms
are defined in the body of this Indenture.

                                       25
<PAGE>

                                   ARTICLE II

                         NOTE DETAILS AND FORM OF NOTES

        SECTION 2.01. NOTE DETAILS. The Notes, together with the Trustee's
certificate of authentication, shall be in substantially the forms set forth in
Exhibit B hereto, 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 the 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 Authorized Representatives executing
such Notes, as evidenced by their execution of such Notes.

        Each Note shall be dated the Date of Issuance. The terms of the Notes
set forth in Exhibit B hereto are part of the terms of this Indenture.

        SECTION 2.02. EXECUTION, AUTHENTICATION AND DELIVERY OF NOTES. The Notes
shall be executed in the name and on behalf of the Issuer by the manual or
facsimile signature of an Authorized Representative. Any Note may be signed
(manually or by facsimile) or attested on behalf of the Issuer by any person
who, at the date of such act, shall hold the proper office or position,
notwithstanding that at the date of authentication, issuance or delivery, such
person may have ceased to hold such office or position.

        The Trustee shall upon Issuer Order authenticate and deliver Notes for
original issue in an aggregate principal amount of $2,437,500,000. The aggregate
principal amount of Notes Outstanding at any time may not exceed such amount
except as provided in Section 2.04 hereof.

        Each Note shall be dated the date of its authentication. The Notes shall
be issuable as registered Notes, in the case of each Class of Class A Notes and
Class B Notes that are LIBOR Rate Notes, in minimum denominations of $100,000
and in integral multiples of $1,000 in excess thereof and, in the case of each
Class of Class A Notes and Class B Notes that are Auction Rate Notes, in minimum
denominations of $25,000 and in integral multiples of $25,000 in excess thereof
(the "Authorized Denominations").

        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 in accordance with Section 2.05 hereof.

        Each Class of Notes will be initially issued in Book-Entry Form and will
be represented by a book-entry note certificate deposited on the Date of
Issuance with Zions First National Bank, as custodian for the initial Clearing
Agency and registered in the name of "Cede & Co." as initial nominee for the
initial Clearing Agency.

                                       26
<PAGE>

        SECTION 2.03. REGISTRATION, TRANSFER AND EXCHANGE OF NOTES; PERSONS
TREATED AS REGISTERED OWNERS. The Issuer shall cause books for the registration
and for the transfer of the Notes as provided in this Indenture to be kept by
the Trustee which is hereby appointed the transfer agent of the Issuer for the
Notes. Notwithstanding such appointment and with the prior written consent of
the Issuer, the Trustee is hereby authorized to make any arrangements with other
institutions which it deems necessary or desirable in order that such
institutions may perform the duties of transfer agent for the Notes. Upon
surrender for transfer of any Note at the Principal Office of the Trustee, duly
endorsed for transfer or accompanied by an assignment duly executed by the
Registered Owner or his attorney duly authorized in writing, the Issuer shall
execute and the Trustee shall authenticate and deliver in the name of the
transferee or transferees a new fully registered Note or Notes of the same
interest rate and for a like Class and aggregate principal amount of the same
Note Final Maturity Date.

        Notes may be exchanged at the Principal Office of the Trustee for a like
aggregate principal amount of fully registered Notes of the same Class, interest
rate and Note Final Maturity Date in Authorized Denominations. The Issuer shall
execute and the Trustee shall authenticate and deliver Notes which the
Registered Owner making the exchange is entitled to receive, bearing numbers not
contemporaneously outstanding. The execution by the Issuer of any fully
registered Note of any Authorized Denomination shall constitute full and due
authorization of such denomination and the Trustee shall thereby be authorized
to authenticate and deliver such fully registered Note.

        As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as hereinabove
provided. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

        Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan; or (b)(i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

        The Trustee shall require the payment by any Registered Owner requesting
exchange or transfer of any tax or other governmental charge required to be paid
with respect to such exchange or transfer. The applicant for any such transfer
or exchange may be required to pay all taxes and governmental charges in
connection with such transfer or exchange, other than exchanges pursuant to
Section 2.07 hereof.

                                       27
<PAGE>

        SECTION 2.04. LOST, STOLEN, DESTROYED AND MUTILATED NOTES. Upon receipt
by the Trustee of evidence satisfactory to it of the ownership of and the loss,
theft, destruction or mutilation of any Note and, in the case of a lost, stolen
or destroyed Note, of indemnity satisfactory to it, and upon surrender and
cancellation of the Note, if mutilated, (a) the Issuer shall execute, and the
Trustee shall authenticate and deliver, a replacement Note of the same Class,
interest rate, Note Final Maturity Date and denomination in lieu of such lost,
stolen, destroyed or mutilated Note or (b) if such lost, stolen, destroyed or
mutilated Note shall have matured or within 15 days shall be due and payable, in
lieu of executing and delivering a new Note as aforesaid, the Issuer may pay
such Note. Any such new Note shall bear a number not contemporaneously
outstanding. The applicant for any such new Note may be required to pay all
taxes and governmental charges and all expenses and charges of the Issuer and of
the Trustee in connection with the issuance of such Note. All Notes shall be
held and owned upon the express condition that, to the extent permitted by law,
the foregoing conditions are exclusive with respect to the replacement and
payment of mutilated, destroyed, lost or stolen Notes, negotiable instruments or
other securities.

        SECTION 2.05. TRUSTEE'S AUTHENTICATION CERTIFICATE. The Trustee's
authentication certificate upon any Notes shall be substantially in the form
attached to the Notes. No Note shall be secured hereby or entitled to the
benefit hereof, or shall be valid or obligatory for any purpose, unless a
certificate of authentication, substantially in such form, has been duly
executed by the Trustee; and such certificate of the Trustee upon any Note shall
be conclusive evidence and the only competent evidence that such Note has been
authenticated and delivered hereunder. The Trustee's certificate of
authentication shall be deemed to have been duly executed by it if manually
signed by an authorized officer or signatory of the Trustee, but it shall not be
necessary that the same person sign the certificate of authentication on all of
the Notes issued hereunder.

        SECTION 2.06. CANCELLATION AND DESTRUCTION OF NOTES BY THE TRUSTEE.
Whenever any Outstanding Notes shall be delivered to the Trustee for the
cancellation thereof pursuant to this Indenture, upon payment of the principal
amount and interest represented thereby, or for replacement pursuant to Section
2.03 hereof, such Notes shall be promptly cancelled and, within a reasonable
time, cremated or otherwise destroyed by the Trustee and counterparts of a
certificate of destruction evidencing such cremation or other destruction shall
be furnished by the Trustee to the Issuer.

        SECTION 2.07. TEMPORARY NOTES. Pending the preparation of definitive
Notes, the Issuer may execute and the Trustee shall authenticate and deliver
temporary Notes. Temporary Notes shall be issuable as fully registered Notes
without coupons, of any denomination, and substantially in the form of the
definitive Notes but with such omissions, insertions and variations as may be
appropriate for temporary Notes, all as may be determined by the Issuer. Every
temporary Note shall be executed by the Issuer and be authenticated by the
Trustee upon the same conditions and in substantially the same manner, and with
like effect, as the definitive Notes. As promptly as practicable the Issuer
shall execute and shall furnish definitive Notes and thereupon temporary Notes
may be surrendered in exchange therefor without charge at the principal office
of the Trustee, and the Trustee shall authenticate and deliver in exchange for
such temporary Notes a like aggregate principal amount of definitive Notes.
Until so exchanged the temporary Notes shall be entitled to the same benefits
under this Indenture as definitive Notes.

                                       28
<PAGE>

        SECTION 2.08. ISSUANCE OF NOTES. The Issuer shall have the authority,
upon complying with the provisions of this Article, to issue and deliver the
Notes which shall be secured by the Trust Estate. In addition, the Issuer may
enter into any Derivative Products it deems necessary or desirable with respect
to any or all of the Notes.

        SECTION 2.09. DEFINITIVE NOTES. If (a) the Administrator advises the
Trustee in writing that the Clearing Agency is no longer willing or able to
discharge its responsibilities with respect to the Notes, and the Administrator
is unable to locate a successor; (b) the Administrator at its option, with the
consent of the applicable Clearing Agency Participants, advises the Trustee in
writing that it elects to terminate the book-entry system through the Clearing
Agency; or (c) after the occurrence of an Event of Default, or a default by the
Master Servicer, a Subservicer or the Administrator under the Master Servicing
Agreement, its related Servicing Agreement or the Administration Agreement,
respectively, Noteholders representing beneficial interests aggregating at least
a majority of the Outstanding Amount of the Notes advise the Clearing Agency
(which shall then notify the Trustee) in writing that the continuation of a
book-entry system through the Clearing Agency is no longer in the best interests
of the Noteholders and the applicable Clearing Agency Participants consent to
the termination of the book-entry system through the Clearing Agency, then the
Trustee shall cause the Clearing Agency to notify all Noteholders, through the
Clearing Agency, of the occurrence of any such event and of the availability of
definitive Notes to Noteholders requesting the same. Upon surrender to the
Trustee of the typewritten Notes representing the book-entry Notes by the
Clearing Agency, accompanied by registration instructions, the Issuer shall
execute and the Trustee shall authenticate the definitive Notes in accordance
with the instructions of the Clearing Agency. Neither the Issuer nor the Trustee
shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of definitive Notes, the Trustee shall recognize the holders
of the definitive Notes as Registered Owners.

        Upon acquisition or transfer of a Definitive Note by, for or with the
assets of, a Benefit Plan, such Noteholder shall be deemed to have represented
that such acquisition or purchase will not constitute or otherwise result in:
(a) in the case of a Benefit Plan subject to Title I of ERISA or Section 4975 of
the Code, a non-exempt prohibited transaction in violation of Section 406 of
ERISA or Section 4975 of the Code which is not covered by a class or other
applicable exemption and (b) in the case of a Benefit Plan subject to a
substantially similar law, a non-exempt violation of such substantially similar
law. Any transfer found to have been made in violation of such deemed
representation shall be null and void and of no effect.

        SECTION 2.10. PAYMENT OF PRINCIPAL AND INTEREST.

                (a) The LIBOR Rate Notes shall accrue interest as provided in
        the forms of the Class A-1 Notes, the Class A-2 Notes, the Class A-3
        Notes, the Class A-4 Notes and the Class B-1 Notes set forth in Exhibits
        B-1, B-2, B-3, B-4 and B-5, respectively, hereto. The Auction Rate Notes
        shall accrue interest as provided in Appendix A hereto and as provided
        in the form of the Class B-2 Notes set forth in Exhibit B-6 hereto. Such
        interest shall be payable with respect to each Class of Notes on its
        applicable Distribution Date as specified in Section 5.04(c) and (d)
        hereof, subject to Section 4.01 hereof. Any installment of interest or

                                       29
<PAGE>

        principal, if any, payable on any Note which is punctually paid or duly
        provided for by the Issuer on the applicable Distribution Date shall be
        paid to the Person in whose name such Note is registered on the Record
        Date by check mailed first-class, postage prepaid to such Person's
        address as it appears on the records of the Trustee on such Record Date,
        except that, unless definitive Notes have been issued pursuant to
        Section 2.09 hereof, 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 shall be made by wire transfer in
        immediately available funds to the account designated by such nominee
        and except for the final installment of principal payable with respect
        to such Note on the applicable Distribution Date or on the Note Final
        Maturity Date for such Note which shall be payable as provided below.
        The amount of interest distributable to Noteholders of the LIBOR Rate
        Notes for each $1,000 in principal amount will be calculated by applying
        the applicable interest rate for the Interest Accrual Period to the
        principal amount of $1,000, multiplying that product by the actual
        number of days in the Interest Accrual Period divided by 360, and
        rounding the resulting percentage figure to the fifth decimal point. The
        amount of interest distributable to Noteholders of the Auction Rate
        Notes will be calculated as set forth in Appendix A hereto. The terms of
        and definitions related to the Auction Rate Notes are found in Article I
        hereof and Appendix A hereto.

                (b) The principal of each Note shall be payable in installments
        on each applicable Distribution Date as provided in Section 5.04(e)
        hereof. Notwithstanding the foregoing, the entire unpaid principal
        amount of each Class of Notes shall be due and payable, if not
        previously paid, on the Note Final Maturity Date for such Class of Notes
        and on the date on which an Event of Default shall have occurred and be
        continuing if the Trustee or the Registered Owners of the 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 6.02 hereof. The Trustee shall notify the
        Person in whose name a Note is registered on or prior to the close of
        business on the Record Date preceding the applicable Distribution 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 or
        transmitted by facsimile prior to such final Distribution 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.

        SECTION 2.11. NOTICES TO CLEARING AGENCY. Whenever a notice or other
communication is required under this Indenture to be given to Noteholders,
unless and until Definitive Notes shall have been issued to Noteholders pursuant
to Section 2.09 hereof, the Trustee shall give all such notices and
communications specified herein to the applicable Clearing Agency.

                                  ARTICLE III

                 PARITY AND PRIORITY OF LIEN; OTHER OBLIGATIONS;
                             AND DERIVATIVE PRODUCTS

        SECTION 3.01. PARITY AND PRIORITY OF LIEN. The provisions, covenants and
agreements herein set forth to be performed by or on behalf of the Issuer shall
be for the equal benefit, protection and security of the Registered Owners of
any and all of the Obligations, all of which, shall be of equal rank without
preference, priority or distinction of any of the Obligations over any other
thereof, except as expressly provided in this Indenture with respect to certain
payment and other priorities.

                                       30
<PAGE>

        SECTION 3.02. OTHER OBLIGATIONS. The Available Funds and other moneys,
Financed Eligible Loans, securities, evidences of indebtedness, interests,
rights and properties pledged under this Indenture are and will be owned by the
Issuer free and clear of any pledge, lien, charge or encumbrance thereon or with
respect thereto prior to, of equal rank with or subordinate to the respective
pledges created by this Indenture, except as otherwise expressly provided
herein, and all action on the part of the Issuer to that end has been duly and
validly taken. If any Financed Eligible Loan is found to have been subject to a
lien at the time such Financed Eligible Loan was acquired, the Issuer shall
cause such lien to be released, shall purchase such Financed Eligible Loan from
the Trust Estate for a purchase price equal to its principal amount plus any
unamortized premium, if any, and interest accrued thereon or shall replace such
Financed Eligible Loan with another Eligible Loan with substantially identical
characteristics which replacement Eligible Loan shall be free and clear of liens
at the time of such replacement. Except as otherwise provided herein, the Issuer
shall not create or voluntarily permit to be created any debt, lien or charge on
the Financed Eligible Loans which would be on a parity with, subordinate to, or
prior to the lien of this Indenture; shall not do or omit to do or suffer to be
done or omitted to be done any matter or things whatsoever whereby the lien of
this Indenture or the priority of such lien for the Obligations hereby secured
might or could be lost or impaired; and will pay or cause to be paid or will
make adequate provisions for the satisfaction and discharge of all lawful claims
and demands which if unpaid might by law be given precedence to or any equality
with this Indenture as a lien or charge upon the Financed Eligible Loans;
provided, however, that nothing in this Section shall require the Issuer to pay,
discharge or make provision for any such lien, charge, claim or demand so long
as the validity thereof shall be by it in good faith contested, unless thereby,
in the opinion of the Trustee, the same will endanger the security for the
Obligations; and provided further that any subordinate lien hereon (i.e.,
subordinate to the lien securing the Class A Obligations and the Class B Notes)
shall be entitled to no payment from the Trust Estate, nor may any remedy be
exercised with respect to such subordinate lien against the Trust Estate until
all Obligations have been paid or deemed paid hereunder.

        SECTION 3.03. DERIVATIVE PRODUCTS; COUNTERPARTY PAYMENTS; ISSUER
DERIVATIVE PAYMENTS. The Issuer hereby authorizes and directs the Trustee to
acknowledge and agree to any Derivative Product hereafter entered into by the
Issuer and a Counterparty under which (a) the Issuer may be required to make,
from time to time, payments to a Counterparty and (b) the Trustee may receive,
from time to time, Counterparty Payments for the account of the Issuer. No
Derivative Product shall be entered into subsequent to the Date of Issuance
unless the Trustee shall have received a Rating Confirmation from each Rating
Agency that such Derivative Product will not adversely affect the Rating on any
of the Notes.

                                       31
<PAGE>

                                   ARTICLE IV

                       PROVISIONS APPLICABLE TO THE NOTES;
                              DUTIES OF THE ISSUER

        SECTION 4.01. PAYMENT OF PRINCIPAL AND INTEREST. The Issuer covenants
that it will promptly pay, but solely from the Trust Estate, the principal of
and interest, if any, on each and every Obligation issued under the provisions
of this Indenture at the places, on the dates and in the manner specified herein
and in said Obligations according to the true intent and meaning thereof. The
Obligations shall be and are hereby declared to be payable from and equally
secured, except as specifically provided in this Indenture with respect to
certain payment and other priorities, by an irrevocable first lien on and pledge
of the properties constituting the Trust Estate, subject to the application
thereof as permitted by this Indenture, but in no event shall the Registered
Owners or any Counterparty have any right to possession or control of any
Financed Eligible Loans, which shall be held only by the Trustee or its agent or
bailee.

        SECTION 4.02. COVENANTS AS TO ADDITIONAL CONVEYANCES. At any and all
times, the Issuer will duly execute, acknowledge and deliver, or will cause to
be done, executed and delivered, all and every such further acts, conveyances,
transfers and assurances in law as the Trustee shall reasonably require for the
better conveying, transferring and pledging and confirming unto the Trustee, all
and singular, the properties constituting the Trust Estate hereby transferred
and pledged, or intended so to be transferred and pledged.

        SECTION 4.03. FURTHER COVENANTS OF THE ISSUER.

                (a) The Issuer will cause financing statements and continuation
        statements with respect thereto at all times to be filed in the office
        of the Secretary of State of the State and any other jurisdiction
        necessary to perfect and maintain the security interest granted by the
        Issuer hereunder.

                (b) The Issuer will duly and punctually keep, observe and
        perform each and every term, covenant and condition on its part to be
        kept, observed and performed, contained in this Indenture and the other
        agreements to which the Issuer is a party pursuant to the transactions
        contemplated herein, including but not limited to the Basic Documents to
        which it is a party, the Guarantee Agreements and the Certificate of
        Insurance, and will punctually perform all duties required by the Trust
        Agreement and the laws of the State.

                (c) The Issuer shall be operated on the basis of its Fiscal
        Year.

                (d) The Issuer shall cause to be kept full and proper books of
        records and accounts, in which full, true and proper entries will be
        made of all dealings, business and affairs of the Issuer which relate to
        the Notes and any Derivative Product.

                                       32
<PAGE>

                (e) The Issuer, upon written request of the Trustee, will permit
        at all reasonable times the Trustee or its agents, accountants and
        attorneys, to examine and inspect the property, books of account,
        records, reports and other data relating to the Financed Eligible Loans,
        and will furnish the Trustee such other information as it may reasonably
        request. The Trustee shall be under no duty to make any such examination
        unless requested in writing to do so by the Registered Owners of 66-2/3%
        in collective aggregate principal amount of the Notes at the time
        Outstanding, and unless such Registered Owners shall have offered the
        Trustee security and indemnity satisfactory to it against any costs,
        expenses and liabilities which might be incurred thereby.

                (f) The Issuer shall cause an annual audit to be made by an
        independent auditing firm of national reputation and file one copy
        thereof with the Trustee and each Rating Agency within 150 days of the
        close of each Fiscal Year. The Trustee shall be under no obligation to
        review or otherwise analyze such audit.

                (g) The Issuer covenants that all Financed Eligible Loans upon
        receipt thereof shall be delivered to the Trustee or its agent or bailee
        to be held pursuant to this Indenture and pursuant to the Master
        Servicing Agreement, a Subservicing Agreement or a Custodian Agreement.

                (h) Notwithstanding anything to the contrary contained herein,
        except upon the occurrence and during the continuance of an Event of
        Default hereunder, the Issuer hereby expressly reserves and retains the
        privilege to receive and, subject to the terms and provisions of this
        Indenture, to keep or dispose of, claim, bring suits upon or otherwise
        exercise, enforce or realize upon its rights and interest in and to the
        Financed Eligible Loans and the proceeds and collections therefrom, and
        neither the Trustee nor any Registered Owner shall in any manner be or
        be deemed to be an indispensable party to the exercise of any such
        privilege, claim or suit and the Trustee shall be under no obligation
        whatsoever to exercise any such privilege, claim or suit; provided,
        however, that the Trustee shall have and retain possession or control of
        the Financed Eligible Loans pursuant to Section 5.02 hereof (which
        Financed Eligible Loans may be held by the Trustee's agent or bailee) so
        long as such loans are subject to the lien of this Indenture.

                (i) The Issuer shall notify the Trustee and each Rating Agency
        in writing prior to entering into any Derivative Product.

        SECTION 4.04. ENFORCEMENT OF MASTER SERVICING AGREEMENT AND SUBSERVICING
AGREEMENTS. The Issuer shall comply with, shall require the Master Servicer to
comply with and shall cause the Master Servicer to require the Subservicers to
comply with the following whether or not the Issuer is otherwise in default
under this Indenture:

                (a) cause to be diligently enforced and taken all reasonable
        steps, actions and proceedings necessary for the enforcement of all
        terms, covenants and conditions of the Master Servicing Agreement and
        all Subservicing Agreements, including the prompt payment of all amounts
        due the Issuer thereunder, including, without limitation, all principal
        and interest payments, and Guarantee payments which relate to any
        Financed Eligible Loans and cause the Master Servicer and each
        Subservicer to specify whether payments received by it represent
        principal or interest;

                (b) not permit the release of the obligations of the Master
        Servicer and any Subservicer under the Master Servicing Agreement and
        any Subservicing Agreement except in conjunction with amendments or
        modifications permitted by paragraph (h) below;

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                (c) at all times, to the extent permitted by law, cause to be
        defended, enforced, preserved and protected the rights and privileges of
        the Issuer, the Trustee and the Registered Owners under or with respect
        to the Master Servicing Agreement and each Subservicing Agreement;

                (d) at its own expense, the Issuer shall duly and punctually
        perform and observe each of its obligations to the Master Servicer or a
        Subservicer under the Master Servicing Agreement or its related
        Subservicing Agreement in accordance with the terms thereof;

                (e) the Issuer agrees to give the Trustee and each Rating Agency
        prompt written notice of each default on the part of the Master Servicer
        or a Subservicer of its obligations under the Master Servicing Agreement
        or its related Subservicing Agreement coming to the Issuer's attention;

                (f) the Issuer shall not waive any default by the Master
        Servicer or a Subservicer under the Master Servicing Agreement or its
        related Subservicing Agreement without the written consent of the
        Trustee and the giving of written notice to each Rating Agency;

                (g) the Issuer shall cause the Master Servicer and each
        Subservicer to deliver to the Trustee and the Issuer, on or before March
        30 of each year, beginning with March 30, 2008, a certificate stating
        that (i) a review of the activities of the Master Servicer and each
        Subservicer during the preceding calendar year and of its performance
        under the Master Servicing Agreement and its related Subservicing
        Agreement has been made under the supervision of the officer signing
        such certificate and (ii) to the best of such officers' knowledge, based
        on such review, the Master Servicer and such Subservicer has fulfilled
        all its obligations under the Master Servicing Agreement and its related
        Subservicing Agreement throughout such year, or, there has been a
        default in the fulfillment of any such obligation, specifying each such
        default known to such officer and the nature and stature thereof. The
        Issuer shall send copies of such annual certificate of the Master
        Servicer and each Subservicer to each Rating Agency; and

                (h) not consent or agree to or permit any amendment or
        modification of the Master Servicing Agreement or any Subservicing
        Agreement which will in any manner materially adversely affect the
        rights or security of the Registered Owners. The Issuer and the Trustee
        shall be entitled to receive and rely upon an opinion of counsel that
        any such amendment or modification will not materially adversely affect
        the rights or security of the Registered Owners.

        SECTION 4.05. PROCEDURES FOR TRANSFER OF FUNDS. In any instance where
this Indenture requires a transfer of funds or money from one Fund to another, a
transfer of ownership in investments or an undivided interest therein may be
made in any manner agreeable to the Issuer and the Trustee, and in the
calculation of the amount transferred, interest on the investment which has or
will accrue before the date the money is needed in the fund to which the
transfer is made shall not be taken into account or considered as money on hand
at the time of such transfer.

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        SECTION 4.06. ADDITIONAL COVENANTS WITH RESPECT TO THE HIGHER EDUCATION
ACT. The Issuer covenants that it will cause the Trustee to be, or replace the
Trustee with, an Eligible Lender under the Higher Education Act, that it will
acquire or cause to be acquired Eligible Loans originated and held only by an
Eligible Lender and that it will not dispose of or deliver any Financed Eligible
Loans or any security interest in any such Financed Eligible Loans to any party
who is not an Eligible Lender so long as the Higher Education Act or Regulations
adopted thereunder require an Eligible Lender to be the owner or holder of
Guaranteed Eligible Loans; provided, however, that nothing above shall prevent
the Issuer from delivering the Eligible Loans to the Master Servicer, a
Subservicer or a Guaranty Agency. The Registered Owners of the Notes shall not
in any circumstances be deemed to be the owner or holder of Guaranteed Eligible
Loans.

        The Issuer, or the Administrator on behalf of the Issuer, shall be
responsible for each of the following actions with respect to the Higher
Education Act:

                (a) the Issuer, or the Administrator on behalf of the Issuer,
        shall be responsible for dealing with the Secretary with respect to the
        rights, benefits and obligations, under the Certificates of Insurance,
        including but not limited to the payment of all of the fees owed with
        respect the Financed Eligible Loans, and the Issuer, or the
        Administrator on behalf of the Issuer, shall be responsible for dealing
        with the Guaranty Agencies with respect to the rights, benefits and
        obligations under the Guarantee Agreements with respect to the Financed
        Eligible Loans;

                (b) the Issuer, or the Administrator on behalf of the Issuer,
        shall cause to be diligently enforced, and shall cause to be taken all
        reasonable steps, actions and proceedings necessary or appropriate for
        the enforcement of all terms, covenants and conditions of all Financed
        Eligible Loans and agreements in connection therewith, including the
        prompt payment of all principal and interest payments and all other
        amounts due thereunder;

                (c) the Issuer, or the Administrator on behalf of the Issuer,
        shall cause the Financed Eligible Loans to be serviced by entering into
        the Master Servicing Agreement or other agreement with the Master
        Servicer for the collection of payments made for, and the administration
        of the accounts of, the Financed Eligible Loans;

                (d) the Issuer, or the Administrator on behalf of the Issuer,
        shall comply, and shall cause all of its officers, directors, employees
        and agents to comply, with the provisions of the Higher Education Act
        and any regulations or rulings thereunder with respect to the Financed
        Eligible Loans;

                (e) the Issuer, or the Administrator on behalf of the Issuer,
        shall cause all Available Funds, including the benefits of the Guarantee
        Agreements, the Interest Benefit Payments and the Special Allowance
        Payments, to flow to the Trustee. The Trustee shall have no liability
        for actions taken at the direction of the Issuer or the Administrator,
        except for negligence or willful misconduct in the performance of its
        express duties hereunder. The Trustee shall have no obligation to
        administer, service or collect the loans in the Trust Estate or to
        maintain or monitor the administration, servicing or collection of such
        loans; and

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<PAGE>

                (f) the Issuer, or the Administrator on behalf of the Issuer,
        shall cause each Financed Eligible Loan evidenced by a Master Promissory
        Note in the form mandated by Section 432(m)(1) of the Higher Education
        Act to be acquired pursuant to a Student Loan Purchase Agreement with
        the Seller containing language similar to the following:

                      "The Seller hereby represents and warrants that the Seller
               is transferring all of its right title and interest in the MPN
               Loan to the Trustee, that it has not assigned any interest in
               such MPN Loan (other than security interests that have been
               released or ownership interests that the Seller has reacquired)
               to any person other than the Trustee, and that no prior holder of
               the MPN Loan has assigned any interest in such MPN Loan (other
               than security interests that have been released or ownership
               interests that such prior holder has reacquired) to any Person
               other than a predecessor in title to the Seller. The Seller
               hereby covenants that the Seller shall not attempt to transfer to
               any other Person any interest in any MPN Loan assigned hereunder.
               The Seller hereby authorizes the Trustee to file a UCC-1
               financing statement identifying the Seller as debtor and the
               Trustee as secured party and describing the MPN Loan sold
               pursuant to this Agreement. The preparation or filing of such
               UCC-1 financing statement is solely for additional protection of
               the Trustee's interest in the MPN Loans and shall not be deemed
               to contradict the express intent of the Seller and the Trustee
               that the transfer of MPN Loans under this Agreement is an
               absolute assignment of such MPN Loans and is not a transfer of
               such MPN Loans as security for a debt."

        The Trustee shall not be deemed to be the designated agent for the
purposes of this Section unless it has agreed in writing to be such agent.

        SECTION 4.07. FINANCED ELIGIBLE LOANS; COLLECTIONS THEREOF; ASSIGNMENT
THEREOF. The Issuer, through the Master Servicer and one or more Subservicers,
shall diligently collect all principal and interest payments on all Financed
Eligible Loans, and all Interest Benefit Payments, insurance, guarantee and
default claims and Special Allowance Payments which relate to such Financed
Eligible Loans; provided, however, the Issuer may offer interest rate reductions
with respect to the Financed Eligible Loans which result in rates of interest
not less than those shown in the cash flow analyses provided to each Rating
Agency on the Date of Issuance, and provided further that such rates of interest
may be further reduced if a Rating Confirmation is obtained, based on new cash
flow analyses containing such assumptions as the Issuer shall reasonably
determine. The Issuer shall cause the filing and assignment of such claims
(prior to the timely filing deadline for such claims under the Regulations) by
the Master Servicer or the appropriate Subservicer. The Issuer will comply with
the Higher Education Act and Regulations which apply to the Program and to such
Financed Eligible Loans.

        SECTION 4.08. APPOINTMENT OF AGENTS, DIRECTION TO TRUSTEE, ETC. The
Issuer shall employ and appoint all employees, agents, consultants and attorneys
which it may consider necessary. No member of the board of directors or officer
of the Administrator, either singly or collectively, shall be personally liable

                                       36
<PAGE>

for any act or omission not willfully fraudulent or mala fide. The Issuer hereby
directs the Trustee to enter into this Indenture, the Administration Agreement,
the Custodian Agreements, the Auction Agent Agreement and the Investment
Agreements. The Issuer hereby directs the Eligible Lender Trustee to enter into
this Indenture, the Guarantee Agreements, the Custodian Agreements and the
Eligible Lender Trust Agreement.

        SECTION 4.09. CAPACITY TO SUE. The Issuer shall have the power and
capacity to sue and to be sued on matters arising out of or relating to the
financing of the Financed Eligible Loans.

        SECTION 4.10. CONTINUED EXISTENCE; SUCCESSOR TO ISSUER. The Issuer
agrees that it will do or cause to be done all things necessary to preserve and
keep in full force and effect its existence, rights and franchises as a Delaware
statutory trust, except as otherwise permitted by this Section. The Issuer
further agrees that it will not (a) sell, transfer or otherwise dispose of all
or substantially all, of its assets (except Financed Eligible Loans if such
sale, transfer or disposition will discharge this Indenture in accordance with
Article X hereof); (b) consolidate with or merge into another entity; or (c)
permit one or more other entities to consolidate with or merge into it. The
preceding restrictions in clauses (a), (b) and (c) above shall not apply to a
transaction if the transferee or the surviving or resulting entity, if other
than the Issuer, by proper written instrument for the benefit of the Trustee,
irrevocably and unconditionally assumes the obligation to perform and observe
the agreements and obligations of the Issuer under this Indenture.

        If a transfer is made as provided in this Section, the provisions of
this Section shall continue in full force and effect and no further transfer
shall be made except in compliance with the provisions of this Section.

        SECTION 4.11. AMENDMENT OF STUDENT LOAN PURCHASE AGREEMENTS. The Issuer
shall notify the Trustee in writing of any proposed amendments to any existing
Student Loan Purchase Agreement. No such amendment shall become effective unless
and until the Trustee consents thereto in writing. The consent of the Trustee
shall not be unreasonably withheld and shall not be withheld if the Trustee
receives an opinion of counsel acceptable to it that such an amendment is
required by the Higher Education Act and is not materially prejudicial to the
Registered Owners.

        SECTION 4.12. REPRESENTATIONS; NEGATIVE COVENANTS.

                (a) The Issuer hereby makes the following representations and
        warranties to the Trustee on which the Trustee relies in authenticating
        the Notes and on which the Registered Owners have relied in purchasing
        the Notes. Such representations and warranties shall survive the
        transfer and assignment of the Trust Estate to the Trustee.

                        (i) ORGANIZATION AND GOOD STANDING. The Issuer is duly
                organized and validly existing under the laws of the State, and
                has the power to own its assets and to transact the business in
                which it presently engages.

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<PAGE>

                        (ii) DUE QUALIFICATION. The Issuer is duly qualified to
                do business and is in good standing, and has obtained all
                material necessary licenses and approvals, in all jurisdictions
                where the failure to be so qualified, have such good standing or
                have such licenses or approvals would have a material adverse
                effect on the Issuer's business and operations or in which the
                actions as required by this Indenture require or will require
                such qualification.

                        (iii) AUTHORIZATION. The Issuer has the power, authority
                and legal right to create and issue the Notes, to execute,
                deliver and perform this Indenture and to grant the Trust Estate
                to the Trustee and the creation and issuance of the Notes,
                execution, delivery and performance of this Indenture and grant
                of the Trust Estate to the Trustee have been duly authorized by
                the Issuer by all necessary statutory trust action.

                        (iv) BINDING OBLIGATION. This Indenture, assuming due
                authorization, execution and delivery by the Trustee, the Notes
                in the hands of the Registered Owners thereof and the Issuer
                Derivative Payments constitute legal, valid and binding
                obligations of the Issuer enforceable against the Issuer in
                accordance with their terms, except that (A) such enforcement
                may be subject to bankruptcy, insolvency, reorganization,
                moratorium or other similar laws (whether statutory, regulatory
                or decisional) now or hereafter in effect relating to creditors'
                rights generally and (B) the remedy of specific performance and
                injunctive and other forms of equitable relief may be subject to
                certain equitable defenses and to the discretion of the court
                before which any proceeding therefor may be brought, whether a
                proceeding at law or in equity.

                        (v) NO VIOLATION. 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,
                lapse of time or both) a default under the organizational
                documents of the Issuer, or any material indenture, agreement,
                mortgage, deed of trust or other instrument to which the Issuer
                is a party or by which it is bound, or result in the creation or
                imposition of any lien upon any of its material properties
                pursuant to the terms of any such indenture, agreement,
                mortgage, deed of trust or other instrument, other than this
                Indenture, nor violate any law or any order, rule or regulation
                applicable to the Issuer of any court or of any federal or state
                regulatory body, administrative agency or other governmental
                instrumentality having jurisdiction over the Issuer or any of
                its properties.

                        (vi) NO PROCEEDINGS. There are no proceedings,
                injunctions, writs, restraining orders or investigations to
                which the Issuer or any of its affiliates is a party pending,
                or, to the best of its knowledge, threatened, before any court,
                regulatory body, administrative agency or other tribunal or
                governmental instrumentality (A) asserting the invalidity of
                this Indenture, (B) seeking to prevent the issuance of any Notes
                or the consummation of any of the transactions contemplated by
                this Indenture or (C) seeking any determination or ruling that
                might materially and adversely affect the performance by the
                Issuer of its obligations under, or the validity or
                enforceability of this Indenture.

                                       38
<PAGE>

                        (vii) APPROVALS. All approvals, authorizations,
                consents, orders or other actions of any person, corporation or
                other organization, or of any court, governmental agency or body
                or official, required on the part of the Issuer in connection
                with the execution and delivery of this Indenture have been
                taken or obtained on or prior to the Date of Issuance.

                        (viii) PLACE OF BUSINESS. The Issuer's place of business
                and chief executive office is located in Wilmington, Delaware
                and the Issuer has had no other chief executive office.

                        (ix) TAX AND ACCOUNTING TREATMENT. The Issuer intends to
                treat the transactions contemplated by the Student Loan Purchase
                Agreements as an absolute transfer rather than as a pledge of
                the Financed Eligible Loans from the Seller for federal income
                tax and financial accounting purposes and the Issuer (through
                the Eligible Lender Trustee) will be treated as the owner of the
                Financed Eligible Loans for all purposes. The Issuer further
                intends to treat the Notes as its indebtedness for federal
                income tax and financial accounting purposes.

                        (x) TAXES. The Issuer has filed (or caused to be filed)
                all federal, state, county, local and foreign income, franchise
                and other tax returns required to be filed by it through the
                date hereof, and has paid all taxes reflected as due thereon.
                There is no pending dispute with any taxing authority that, if
                determined adversely to the Issuer, would result in the
                assertion by any taxing authority of any material tax
                deficiency, and the Issuer has no knowledge of a proposed
                liability for any tax year to be imposed upon such entity's
                properties or assets for which there is not an adequate reserve
                reflected in such entity's current financial statements.

                        (xi) LEGAL NAME. The legal name of the Issuer is "Nelnet
                Student Loan Trust 2007-1" and has not changed since its
                inception. The Issuer has no trade names, fictitious names,
                assumed names or "dba's" under which it conducts its business
                and has made no filing in respect of any such name.

                        (xii) BUSINESS PURPOSE. The Issuer has acquired the
                Financed Eligible Loans conveyed to it under a Student Loan
                Purchase Agreement for a bona fide business purpose and has
                undertaken the transactions contemplated herein as principal
                rather than as an agent of any other Person. The Issuer has no
                subsidiaries, has adopted and operated consistently with all
                requirements for statutory trusts under the laws of the State
                with respect to its operations and has engaged in no other
                activities other than those specified in this Indenture and the
                Student Loan Purchase Agreements and in accordance with the
                transactions contemplated herein and therein.

                        (xiii) COMPLIANCE WITH LAWS. The Issuer is in compliance
                with all applicable laws and regulations with respect to the
                conduct of its business and has obtained and maintains all
                permits, licenses and other approvals as are necessary for the
                conduct of its operations.

                                       39
<PAGE>

                        (xiv) VALID BUSINESS REASONS; NO FRAUDULENT TRANSFERS.
                The transactions contemplated by this Indenture are in the
                ordinary course of the Issuer's business and the Issuer has
                valid business reasons for granting the Trust Estate pursuant to
                this Indenture. At the time of each such grant: (A) the Issuer
                granted the Trust Estate to the Trustee without any intent to
                hinder, delay or defraud any current or future creditor of the
                Issuer; (B) the Issuer was not insolvent and did not become
                insolvent as a result of any such grant; (C) the Issuer was not
                engaged and was not about to engage in any business or
                transaction for which any property remaining with such entity
                was an unreasonably small capital or for which the remaining
                assets of such entity are unreasonably small in relation to the
                business of such entity or the transaction; (D) the Issuer did
                not intend to incur, and did not believe or should not have
                reasonably believed that it would incur, debts beyond its
                ability to pay as they become due; and (E) the consideration
                received by the Issuer for the grant of the Trust Estate was
                reasonably equivalent to the value of the related grant.

                        (xv) NO MANAGEMENT OF AFFAIRS OF SELLER. The Issuer is
                not and will not be involved in the day-to-day management of the
                Seller, the Administrator, the Depositor or any affiliate.

                        (xvi) NO TRANSFERS WITH SELLER OR AFFILIATES. Other than
                the acquisition of assets and the transfer of any Notes pursuant
                to this Indenture, the Issuer does not engage in and will not
                engage in any transactions with the Seller and affiliates,
                except as provided herein with respect to the Administration
                Agreement and the Master Servicing Agreement or the payment of
                distributions to the Depositor.

                        (xvii) ABILITY TO PERFORM. There has been no material
                impairment in the ability of the Issuer to perform its
                obligations under this Indenture.

                        (xviii) FINANCIAL CONDITION. No material adverse change
                has occurred in the Issuer's financial status since the date of
                its formation.

                        (xix) EVENT OF DEFAULT. No Event of Default has occurred
                and no event has occurred that, with the giving of notice, the
                passage of time, or both, would become an Event of Default.

                        (xx) ACQUISITION OF FINANCED ELIGIBLE LOANS LEGAL. The
                Issuer has complied with all applicable federal, state and local
                laws and regulations in connection with its acquisition of the
                Financed Eligible Loans from the Seller.

                        (xxi) NO MATERIAL MISSTATEMENTS OR OMISSIONS. No
                information, certificate of an officer, statement furnished in
                writing or report delivered to the Trustee, the Master Servicer,
                a Subservicer or any Registered Owner by the Issuer contains any
                untrue statement of a material fact or omits a material fact
                necessary to make such information, certificate, statement or
                report not misleading.

                                       40
<PAGE>

                (b) The Issuer will not:

                        (i) sell, transfer, exchange or otherwise dispose of any
                portion of the Trust Estate except as expressly permitted by
                this Indenture;

                        (ii) claim any credit on, or make any deduction from,
                the principal amount of any of the Notes by reason of the
                payment of any taxes levied or assessed upon any portion of the
                Trust Estate;

                        (iii) except as otherwise provided herein, dissolve or
                liquidate in whole or in part, except with the prior written
                consent of the Trustee, and to the extent Notes remain
                Outstanding, approval of the Registered Owners and a Rating
                Confirmation;

                        (iv) permit the validity or effectiveness of this
                Indenture, any Supplement or any grant hereunder 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
                under this Indenture, except as may be expressly permitted
                hereby;

                        (v) except as otherwise provided herein, permit any
                lien, charge, security interest, mortgage or other encumbrance
                (other than the lien of this Indenture) to be created on or
                extend to or otherwise arise upon or burden the Trust Estate or
                any part thereof or any interest therein or the proceeds
                thereof;

                        (vi) permit the lien of this Indenture not to constitute
                a valid first priority, perfected security interest in the Trust
                Estate;

                        (vii) incur or assume any indebtedness or guarantee any
                indebtedness of any Person whether secured by any Financed
                Eligible Loans under this Indenture or otherwise, except for
                such obligations as may be incurred by the Issuer in connection
                with the issuance of the Notes pursuant to this Indenture and
                unsecured trade payables in the ordinary course of its business;

                        (viii) operate such that it would be consolidated with
                the Depositor or any other affiliate and its separate existence
                disregarded in any federal or state proceeding;

                        (ix) act as agent of the Seller or, except as provided
                in its Student Loan Purchase Agreement, allow the Seller to act
                as its agent;

                        (x) allow the Seller or the Depositor or any other
                affiliate to pay its expenses, guarantee its obligations or
                advance funds to it for payment of expenses; or

                                       41
<PAGE>

                        (xi) consent to the appointment of a conservator or
                receiver or liquidator in any insolvency, readjustment of debt,
                marshalling of assets and liabilities or similar proceedings of
                or relating to the Issuer or of or relating to all or
                substantially all of its property, or a decree or order of a
                court or agency or supervisory authority having jurisdiction in
                the premises for the appointment of a conservator or receiver or
                liquidator in any insolvency, readjustment of debt, marshalling
                of assets and liabilities or similar proceedings, or for the
                winding-up or liquidation of its affairs, shall have been
                entered against the Issuer; or the Issuer shall not consent to
                the appointment of a receiver, conservator or liquidator in any
                insolvency, readjustment of debt, marshalling of assets and
                liabilities, voluntary liquidation or similar proceedings of or
                relating to the Issuer or of or relating to all or substantially
                all of its property; or admit in writing its inability to pay
                its debts generally as they become due, file a petition to take
                advantage of any applicable insolvency, bankruptcy or
                reorganization statute, make an assignment for the benefit of
                its creditors or voluntarily suspend payment of its obligations.

                (c) The Issuer makes the following representations and
        warranties as to the Trust Estate which is granted to the Trustee
        hereunder on such date, on which the Trustee relies in accepting the
        Trust Estate. Such representations and warranties shall survive the
        grant of the Trust Estate to the Trustee pursuant to this Indenture:

                        (i) FINANCED ELIGIBLE LOANS. Each Financed Eligible Loan
                acquired by the Issuer shall constitute an Eligible Loan and
                shall satisfy any representations and warranties made with
                respect thereto in an applicable Student Loan Purchase
                Agreement. Notwithstanding the definition of "Eligible Loans"
                herein, the Issuer covenants that no more than 20% of each
                purchase of Eligible Loans will be made up of Eligible Loans
                delinquent by more than 30 days.

                        (ii) GRANT. It is the intention of the Issuer that the
                transfer herein contemplated constitutes a grant of the Financed
                Eligible Loans to the Trustee.

                        (iii) ALL FILINGS MADE. All filings (including, without
                limitation, UCC filings) necessary in any jurisdiction to give
                the Trustee a first priority perfected ownership and security
                interest in the Trust Estate, including the Financed Eligible
                Loans, have been made no later than the Date of Issuance and
                copies of the file-stamped financing statements shall be
                delivered to the Trustee within five Business Days of receipt by
                the Issuer or its agent from the appropriate secretary of state.
                The Issuer has not caused, suffered or permitted any lien,
                pledges, offsets, defenses, claims, counterclaims, charges or
                security interest with respect to the Financed Eligible Loans
                (other than the security interest created in favor of the
                Trustee) to be created.

                        (iv) TRANSFER NOT SUBJECT TO BULK TRANSFER ACT. Each
                grant of the Financed Eligible Loans by the Issuer pursuant to
                this Indenture is not subject to the bulk transfer act or any
                similar statutory provisions in effect in any applicable
                jurisdiction.

                        (v) NO TRANSFER TAXES DUE. Each grant of the Financed
                Eligible Loans (including all payments due or to become due
                thereunder) by the Issuer pursuant to this Indenture is not
                subject to and will not result in any tax, fee or governmental
                charge payable by the Issuer or the Seller to any federal, state
                or local government.

                                       42
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        SECTION 4.13. ADDITIONAL COVENANTS. So long as any of the Notes are
Outstanding:

                (a) The Issuer shall not engage in any business or activity
        other than in connection with the transactions contemplated by the Basic
        Documents.

                (b) The Issuer shall not consolidate or merge with or into any
        other entity or convey or transfer its properties and assets
        substantially as an entirety to any entity except as otherwise provided
        herein.

                (c) The funds and other assets of the Issuer shall not be
        commingled with those of any other individual, corporation, estate,
        partnership, joint venture, association, joint stock company, trust,
        unincorporated organization or government, or any agency or political
        subdivision thereof.

                (d) The Issuer shall not be, become or hold itself out as being
        liable for the debts of any other party.

                (e) The Issuer shall not form, or cause to be formed, any
        subsidiaries.

                (f) The Issuer shall act solely in its own name and through its
        duly authorized officers or agents in the conduct of its business, and
        shall conduct its business so as not to mislead others as to the
        identity of the entity with which they are concerned.

                (g) The Issuer shall maintain its records and books of account
        and shall not commingle its records and books of account with the
        records and books of account of any other Person. The books of the
        Issuer may be kept (subject to applicable law) inside or outside the
        State at such place or places as may be designated from time to time by
        the provisions of the Trust Agreement.

                (h) All actions of the Issuer shall be taken by an Authorized
        Representative.

                (i) The Issuer shall not amend, alter, change or repeal any
        provision contained in this Section without (i) the prior written
        consent of the Trustee and (ii) a Rating Confirmation from each Rating
        Agency rating any Notes Outstanding (a copy of which shall be provided
        to the Trustee) that such amendment, alteration, change or repeal will
        have no adverse effect on the rating assigned to the Notes.

                (j) The Issuer shall not amend its Certificate of Trust or its
        Trust Agreement without first obtaining the prior written consent of
        each Rating Agency.

                (k) All audited financial statements of the Issuer that are
        consolidated with those of any affiliate thereof will contain detailed
        notes clearly stating that (i) all of the Issuer's assets are owned by
        the Issuer, and (ii) the Issuer is a separate entity with creditors who
        have received ownership and/or security interests in the Issuer's
        assets.

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<PAGE>

                (l) The Issuer will strictly observe legal formalities in its
        dealings with the Seller, the Depositor or any affiliate thereof, and
        funds or other assets of the Issuer will not be commingled with those of
        the Seller, the Depositor or any other affiliate thereof. The Issuer
        shall not maintain joint bank accounts or other depository accounts to
        which the Seller, the Depositor or any other affiliate has independent
        access. None of the Issuer's funds will at any time be pooled with any
        funds of the Seller, the Depositor or any other affiliate.

                (m) The Issuer will maintain an arm's length relationship with
        the Seller (and any Affiliate). Any Person that renders or otherwise
        furnishes services to the Issuer will be compensated by the Issuer at
        market rates for such services it renders or otherwise furnishes to the
        Issuer except as otherwise provided in this Indenture. Except as
        contemplated in this Indenture, the Student Loan Purchase Agreements,
        the Master Servicing Agreement or a Subservicing Agreement, the Issuer
        will not hold itself out to be responsible for the debts of the Seller,
        the Depositor or the decisions or actions respecting the daily business
        and affairs of the Seller or the Depositor.

        SECTION 4.14. PROVIDING OF NOTICE. The Issuer, upon learning of any
failure on its part to observe or perform in any material respect any covenant,
representation or warranty of the Issuer set forth in this Indenture or the
Student Loan Purchase Agreements, or of any failure on the part of the Seller to
observe or perform in any material respect any covenant, representation or
warranty of the Seller set forth in its Student Loan Purchase Agreement, shall
promptly notify the Trustee, the Master Servicer, the appropriate Subservicer
and each Rating Agency of such failure.

        SECTION 4.15. CERTAIN REPORTS.

                (a) The Issuer will:

                        (i) file with the 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) which the Issuer may be required to file
                with the Commission pursuant to Section 13 or Section 15(d) of
                the Exchange Act;

                        (ii) file with the Trustee and the Commission, in
                accordance with 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 as may be required
                from time to time by such rules and regulations; and

                        (iii) cause the Trustee to transmit by mail to the
                Registered Owners of Notes, within 30 days after the filing
                thereof with the Trustee, in the manner and to the extent
                provided in Section 313(c) of the Trust Indenture Act, such
                summaries of any information, documents and reports required to
                be filed by the Issuer pursuant to subsections (i) and (ii) of
                this subsection (a) as may be required by rules and regulations
                prescribed from time to time by the Commission.

                                       44
<PAGE>

                (b) The Trustee shall mail to each Registered Owner, within 60
        days after each December 31 beginning with the December 31 following the
        date of this Indenture, a brief report as of such December 31 that
        complies with Section 313(a) of the Trust Indenture Act if required by
        said section. The Trustee shall also comply with Section 313(b) of the
        Trust Indenture Act. A copy of each such report required pursuant to
        Section 313(a) or (b) of the Trust Indenture Act shall, at the time of
        such transaction to Registered Owners, be filed by the Trustee with the
        Commission and with each securities exchange, if any, upon which the
        Notes are listed, provided that the Issuer has previously notified the
        Trustee of such listing.

                (c) Not later than the Determination Date preceding each
        Distribution Date, the Administrator will prepare and provide a
        certificate in the form of Exhibit D hereto (the "Administrator's
        Distribution Date Certificate"), or containing such information as the
        Commission may from time to time by rules or regulations prescribe, to
        the Trustee. The Trustee shall provide a copy of any Administrator's
        Distribution Date Certificate to any Noteholder who requests such in
        writing.

                (d) The Trustee may conclusively rely and accept such reports
        from the Issuer as fulfilling the requirements of this Section, with no
        further duty to know, determine or examine such reports or comply with
        the prescribed timing, rules and regulations of the Commission.

        SECTION 4.16. STATEMENT AS TO COMPLIANCE. The Issuer will deliver to the
Trustee, within 120 days after the end of each fiscal year, a brief certificate
from an Authorized Representative including (a) a current list of the Authorized
Representatives, and (b) a statement indicating whether or not to the knowledge
of the signers thereof the Issuer is in compliance with all conditions and
covenants under this Indenture and, in the event of any noncompliance,
specifying such noncompliance and the nature and status thereof. For purposes of
this Section, such compliance shall be determined without regard to any period
of grace or requirement of notice under this Indenture.

        SECTION 4.17. REPRESENTATIONS OF THE ISSUER REGARDING THE TRUSTEE'S
SECURITY INTEREST. The Issuer hereby represents and warrants for the benefit of
the Trustee and the Registered Owners as follows:

                (a) This Indenture creates a valid and continuing security
        interest (as defined in the applicable Uniform Commercial Code in effect
        in the States of Colorado, Delaware, Nebraska and Utah) in the Financed
        Eligible Loans in favor of the Trustee, which security interest is prior
        to all other liens, charges, security interests, mortgages or other
        encumbrances, and is enforceable as such as against creditors of and
        purchasers from Issuer.

                (b) Pursuant to the Higher Education Act, a security interest in
        student loans is perfected in the same manner as "accounts" within the
        meaning of the applicable UCC, which applicable UCCs are the UCC as in
        effect in the States of Delaware and Utah for the purposes of perfecting
        a security interest in the Financed Eligible Loans.

                                       45
<PAGE>

                (c) The Issuer (or the Eligible Lender Trustee on behalf of the
        Issuer) owns and has good and marketable title to the Financed Eligible
        Loans free and clear of any lien, charge, security interest, mortgage or
        other encumbrance, claim or encumbrance of any Person, other that those
        granted pursuant to this Indenture.

                (d) For sale of loan participations, swaps and other "payment
        intangibles" (within the meaning of the applicable UCC), the Issuer has
        received all consents and approvals required by the terms of the
        Financed Eligible Loans to the sale of the Financed Eligible Loans
        hereunder to the Trustee.

                (e) The Issuer has caused or will have caused, within ten days,
        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 in the Financed Eligible Loans granted to
        the Trustee hereunder.

                (f) The Issuer has received a written acknowledgment from the
        Master Servicer and each Subservicer (as custodian for the Trustee) that
        the Master Servicer or such Subservicer is holding executed copies of
        the promissory notes and master promissory notes that constitute or
        evidence the Financed Eligible Loans for which it is acting as Master
        Servicer or Subservicer, and that the Master Servicer or such
        Subservicer is holding such solely on behalf and for the benefit of the
        Trustee.

                (g) Other than the security interest granted to the Trustee
        pursuant to this Indenture, the Issuer has not pledged, assigned, sold,
        granted a security interest in, or otherwise conveyed any of the
        Financed Eligible Loans. 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 Financed Eligible Loans other
        than any financing statement relating to the security interest granted
        to the Trustee hereunder or that has been terminated. The Issuer is not
        aware of any judgment or tax lien filings against the Issuer.

        SECTION 4.18. FURTHER COVENANTS OF THE ISSUER REGARDING THE TRUSTEE'S
SECURITY INTEREST. The Issuer hereby covenants for the benefit of the Trustee
and the Registered Owners as follows:

                (a) The representations and warranties set forth in Section 4.17
        hereof shall survive the termination of this Indenture.

                (b) The Trustee shall not waive any of the representations and
        warranties set forth in Section 4.17 hereof.

                (c) The Issuer shall take all steps necessary, and shall cause
        the Master Servicer and each Subservicer, if any, to take all steps
        necessary and appropriate, to maintain the perfection and priority of
        the Trustee's security interest in the Financed Eligible Loans.

                                       46
<PAGE>

        SECTION 4.19. BORROWER INCENTIVE PROGRAMS. The Issuer presently offers
borrower incentive programs on the Financed Eligible Loans. If any such
incentive programs, or any other borrower incentive programs offered by the
Issuer in the future which are not required by the Higher Education Act, are in
effect for any Financed Eligible Loans on any Quarterly Distribution Date on
which the Parity Ratio falls below the Initial Parity Ratio, the Issuer shall
either (i) contribute funds to the Collection Fund in an amount equal to the
principal or interest that otherwise would have been paid on such Financed
Eligible Loans in the absence of the borrower incentive programs since the
preceding Quarterly Distribution Date or (ii) notify the Master Servicer to
instruct the Subservicers to notify the borrowers that the borrower incentive
programs for those Financed Eligible Loans have been terminated. If the Master
Servicer or a Subservicer is notified to provide notice of the termination of
the borrower incentive programs for the Financed Eligible Loans being serviced
by such Master Servicer or the Subservicer, such Master Servicer or Subservicer
may choose to contribute funds to the Collection Fund in an amount equal to the
principal or interest that otherwise would have been paid on such Financed
Eligible Loans in the absence of the borrower incentive programs on the Financed
Eligible Loans being serviced by such Master Servicer or Subservicer in lieu of
providing notice of the termination of the borrower incentive programs for those
Financed Eligible Loans. The Issuer shall notify the Rating Agencies if the
Issuer, the Master Servicer or a Subservicer contributes any additional amounts
pursuant to this Section or if any of the borrower incentive programs are
terminated.

        SECTION 4.20. STATEMENTS TO NOTEHOLDERS. Two days preceding a Quarterly
Distribution Date, the Issuer shall cause the Administrator to provide to the
Trustee (with a copy to the Rating Agencies) solely for the purpose of having
the Trustee to forward on such Quarterly Distribution Date to Registered Owners
setting forth the information described in Item 1122 of Regulation AB
promulgated by the Securities and Exchange Commission substantially in the form
of Exhibit E hereto, with such additional information as the Administrator shall
determine.

                                   ARTICLE V

                                      FUNDS

        SECTION 5.01. CREATION AND CONTINUATION OF FUNDS AND ACCOUNTS. There are
hereby created and established the following Funds to be held and maintained by
the Trustee for the benefit of the Registered Owners:

                (a) Acquisition Fund, including a Prefunding Account and a Costs
        of Issuance Account therein;

                (b) Capitalized Interest Fund;

                (c) Collection Fund;

                (d) Department Rebate Fund; and

                (e) Reserve Fund

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<PAGE>

        The Trustee is hereby authorized for the purpose of facilitating the
administration of the Trust Estate and for the administration of any Notes
issued hereunder to create further Accounts or Subaccounts in any of the various
Funds and Accounts established hereunder which are deemed necessary or
desirable.

        SECTION 5.02. ACQUISITION FUND. There shall be deposited into the
Acquisition Fund moneys from proceeds of the Notes in an amount equal to
$2,396,181,424. There shall be deposited into the Prefunding Account of the
Acquisition Fund from the proceeds of the Notes deposited to the Acquisition
Fund an amount equal to $15,000,000. There shall be deposited into the Costs of
Issuance Account of the Acquisition Fund from the proceeds of the Notes
deposited to the Acquisition Fund, an amount equal to $1,010,545. Financed
Eligible Loans shall be held by the Trustee or its agent or bailee (including
the Master Servicer or a Subservicer) and shall be pledged to the Trust Estate
and held as a part of the Acquisition Fund.

        Moneys on deposit in the Costs of Issuance Account of the Acquisition
Fund shall be used upon Issuer Order, to pay costs of issuance of the Notes,
including the costs related to the purchase of one or more Derivative Products,
if any. Moneys on deposit in the Acquisition Fund, including the Prefunding
Account of the Acquisition Fund, including, without limitation, amounts
transferred from the Capitalized Interest Fund pursuant to Section 5.03 hereof,
shall be used upon receipt by the Trustee of an Eligible Loan Acquisition
Certificate, to acquire Eligible Loans and to fund "add-on consolidation loans"
that are Eligible Loans, in each case at a price not in excess of 100% of the
outstanding principal balance of such Eligible Loans, plus accrued interest. Any
such Issuer Order or Eligible Loan Acquisition Certificate shall state that such
proposed use of moneys in the Prefunding Account or the Cost of Issuance Fund of
the Acquisition Fund is in compliance with the provisions of this Indenture.

        In addition, on each Monthly Servicing Payment Date or Distribution
Date, to the extent there are insufficient Available Funds in the Collection
Fund to make one or more of the transfers required by Section 5.04(b) (other
than transfers to fund "add-on consolidation loans" or repurchase student loans
from the Master Servicer, and Subservicer or any Guaranty Agency as described in
clause (a)(i) and (iii) of the definition of Available Funds), 5.04(c)(i) and
(ii) and 5.04(d)(i) through (vi) and (ix) hereof, then the Administrator shall
instruct the Trustee in writing to withdraw from the Acquisition Fund (first
from the Prefunding Account and second from the Costs of Issuance Account
therein) on such Monthly Servicing Payment Date or Distribution Date, as the
case may be, an amount of money (but not Eligible Loans) equal to such
deficiency and to deposit such amount in the Collection Fund to the extent
moneys are not available to make such transfers from the Capitalized Interest
Fund pursuant to Section 5.03 hereof. Notwithstanding the foregoing, if any
funds or moneys remain in the Acquisition Fund (including both the Costs of
Issuance Account and the Prefunding Account) on the Distribution Date
immediately following May 21, 2008, then the Trustee shall, without direction
from or notice to the Issuer, transfer all such remaining moneys or funds to the
Collection Fund.

        While the Issuer will be the beneficial owner of the Financed Eligible
Loans, it is understood and agreed that the Eligible Lender Trustee will be the
legal owner thereof and the Trustee will have a security interest in the
Financed Eligible Loans for and on behalf of the Registered Owners. In the case
of a single Financed Eligible Loan evidenced by a separate note, each such note
will be held in the name of the Trustee for the account of the Issuer, for the
benefit of the Registered Owners. In the case of a Financed Eligible Loan
evidenced by a Master Promissory Note, the Issuer shall cause the holder of the
original Master Promissory Note to indicate by book entry on its books and
records that the Issuer is the beneficial owner of the Financed Eligible Loan
and that the Eligible Lender Trustee is the legal owner thereof and the Trustee
has a security interest in the Financed Eligible Loan for the benefit of the
Registered Owners.

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<PAGE>

        Except (i) as provided in Sections 5.08, 10.03 and 10.04 hereof, (ii)
for consolidation or serialization purposes, (iii) for transfers to a Guaranty
Agency, (iv) for transfers to the Master Servicer or a Subservicer pursuant to
its repurchase obligation under the applicable Master Servicing Agreement or
Subservicing Agreement, (v) for transfers to a Seller pursuant to its repurchase
obligation under its Student Loan Purchase Agreement, (vi) when the Issuer does
not have sufficient moneys in the Collection Fund to fund any required "add-on
consolidation loan" (in which case the Issuer may sell the Financed Eligible
Loan to which such required "add-on consolidation loan" relates), or (vii) as
set forth in the following sentence, Financed Eligible Loans shall not be sold,
transferred or otherwise disposed of by the Issuer through the Trustee free from
the lien of this Indenture while any of the Class A Notes are Outstanding. If
necessary for administrative purposes, the Issuer may sell Financed Eligible
Loans through the Trustee free from the lien of this Indenture, so long as the
sale price for any Financed Eligible Loan is not less than the Purchase Amount
of such Financed Eligible Loan and the collective aggregate principal balance of
all such sales does not exceed $10,000,000, and the Issuer hereby certifies the
same to the Trustee, upon which the Trustee may conclusively rely. The Issuer
hereby certifies, upon which the Trustee may conclusively rely, that any
Financed Eligible Loan sold pursuant to this Indenture shall not be sold for a
price less than the Purchase Amount of such Financed Eligible Loan. The Issuer
shall provide notice to Moody's if the principal amount of Financed Eligible
Loans sold pursuant to this Indenture exceeds 10% of the Initial Pool Balance.

        SECTION 5.03. CAPITALIZED INTEREST FUND. There shall be deposited into
the Capitalized Interest Fund moneys from proceeds of the Notes in an amount
equal to $30,400,000.

        On each Monthly Servicing Payment Date or Distribution Date, to the
extent there are insufficient Available Funds in the Collection Fund to make one
or more of the transfers required by Sections 5.04(b) (other than transfers to
fund "add-on consolidation loans" or repurchase student loans from the Master
Servicer, any Subservicer or any Guaranty Agency as described in clause (a)(i)
and (iii) of the definition of Available Funds), 5.04(c)(i) and (ii) and
5.04(d)(i) through (vi) and (ix) hereof, then the Administrator shall instruct
the Trustee in writing to withdraw from the Capitalized Interest Fund on such
Monthly Servicing Payment Date or Distribution Date, as the case may be, an
amount equal to such deficiency and to deposit such amount in the Collection
Fund. On the November 2007 Quarterly Distribution Date, if 55% or more of the
principal balance of the trust's student loans are in repayment, the
Administrator shall instruct the Trustee to transfer any amounts in excess of
$15,200,000 on deposit in the Capitalized Interest Fund to the Prefunding
Account of the Acquisition Fund. On the February 2008 Quarterly Distribution
Date, if 55% or more of the principal balance of the trust's student loans are
in repayment, the Administrator shall instruct the Trustee to transfer any
amounts in excess of $7,600,000 on deposit in the Capitalized Interest Fund to
the Prefunding Account of the Acquisition Fund. On the May 20, 2008, if 55% or
more of the principal balance of the trust's student loans are in repayment, the
Administrator shall instruct the Trustee to transfer all remaining amounts on
deposit in the Capitalized Interest Fund to the Prefunding Account of the
Acquisition Fund, and if not, on the August 2008 Quarterly Distribution Date,
any amounts remaining in the Capitalized Interest Fund will be transferred to
the Collection Fund.

                                       49
<PAGE>

        SECTION 5.04. COLLECTION FUND.

                (a) DEPOSITS TO COLLECTION FUND. There shall be deposited to the
        Collection Fund (i) all Available Funds, and all other moneys and
        investments derived from assets on deposit in and transfers from the
        Capitalized Interest Fund (as described in Section 5.03 hereof), the
        Acquisition Fund (as described in Section 5.02 hereof), the Reserve Fund
        (as described in Section 5.05 hereof) and the Department Rebate Fund (as
        described in Section 5.06 hereof), (ii) all Counterparty Payments, (iii)
        amounts deposited pursuant to Sections 10.03 and 10.04 hereof and (iv)
        any other amounts deposited thereto upon receipt of deposit instructions
        from the Issuer or the Administrator as applicable. Moneys on deposit in
        the Collection Fund shall be used to make the payments described in this
        Section and, to the extent moneys are not available in the Prefunding
        Account of the Acquisition Fund pursuant to Section 5.02 hereof, upon
        receipt by the Trustee of an Eligible Loan Acquisition Certificate, to
        fund "add-on consolidation loans" that are Eligible Loans at a price not
        in excess of 100% of the outstanding principal balance of such Eligible
        Loans. The Trustee may conclusively rely on all written instructions of
        the Administrator described in this Indenture with no further duty to
        examine or determine the information contained in any Administrator's
        Distribution Date Certificate or Issuer Order.

                (b) PAYMENTS ON DATES OTHER THAN DISTRIBUTION DATES. The
        Administrator shall instruct the Trustee in writing no later than the
        Determination Date for the Monthly Servicing Payment Date (based on the
        information contained in a certificate of the Administrator (in the form
        set forth as Exhibit C hereto) and the related Servicer's Report, if
        applicable) to distribute to the Master Servicer, on such Monthly
        Servicing Payment Date, from and to the extent of the Available Funds on
        deposit in the Collection Fund (including any amounts transferred from
        the Capitalized Interest Fund pursuant to Section 5.03 hereof, the
        Acquisition Fund pursuant to Section 5.02 hereof and the Reserve Fund
        pursuant to Section 5.05(b) and (c) hereof), the Servicing Fees due with
        respect to the preceding calendar month, and the Trustee shall comply
        with such instructions. In accordance with Section 5.06 hereof, the
        Administrator shall instruct the Trustee in writing on a monthly basis
        not later than the 10th calendar day of each month to withdraw from the
        Collection Fund and deposit to the Department Rebate Fund the amount
        necessary to bring the balance of the Department Rebate Fund to the
        Department Rebate Interest Amount for such date, and the Trustee shall
        comply with such instructions. Upon written direction from the
        Administrator to the Trustee, moneys in the Collection Fund shall be
        used on any date to pay, when due, fees and expenses insofar as the same
        relate to Financed Eligible Loans and other fees and expenses with
        respect to the Trust Estate the payment of which is not otherwise
        provided for in subsections (c) or (d) of this Section, including
        without limitation amounts described in clause (a)(i), (ii) and (iii) of
        the definition of Available Funds.

                                       50
<PAGE>

                (c) PAYMENTS ON AUCTION RATE DISTRIBUTION DATES. The
        Administrator shall instruct the Trustee in writing no later than the
        Determination Date preceding each Auction Rate Distribution Date which
        is not also a Quarterly Distribution Date (based on the information
        contained in a certificate of the Administrator (in the form set forth
        as Exhibit D hereto) and the related Servicer's Report, if applicable)
        to make the following deposits and distributions from the amounts
        retained in the Collection Fund pursuant to paragraphs (iii), (iv) and
        (vi) of subsection (d) of this Section for such purpose and, if
        necessary, amounts transferred from the Capitalized Interest Fund
        pursuant to Section 5.03 hereof, the Acquisition Fund pursuant to
        Section 5.02 hereof and the Reserve Fund pursuant to Section 5.05(b) and
        (c) hereof, to the Persons or to the account specified below on such
        Auction Rate Distribution Date, in the following order of priority, and
        the Trustee shall comply with such instructions; provided, however, that
        if such amounts are not sufficient to make the payments or deposits
        required pursuant to clauses (i) and (ii) of this subsection (c), then,
        after any required transfers from the Capitalized Interest Fund, the
        Acquisition Fund and the Reserve Fund, any other Available Funds on
        deposit in the Collection Fund may be used to make the payments or
        deposits required pursuant to clauses (i) and (ii) of this subsection
        (c):

                        (i) to pay to the Broker-Dealers and the Auction Agent,
                pro rata, based on amounts owed to each such party, without
                preference or priority of any kind, the Broker-Dealer Fees and
                the Auction Agent Fee, respectively, due on such Auction Rate
                Distribution Date, in each case, together with such fees
                remaining unpaid from prior Distribution Dates; and

                        (ii) to pay to the Class B-2 Noteholders, the Class B-2
                Noteholders' Interest Distribution Amount payable on such
                Auction Rate Distribution Date.

               The Trustee shall pay any Class B Principal Distribution Amount
        allocable to the Auction Rate Notes for which such date is a
        Distribution Date and for which notice of redemption has been given
        pursuant to subsection (h) of this Section. The Trustee shall pay any
        Auction Rate Carry-Over Amount retained in the Collection Fund pursuant
        to paragraph (xi) of subsection (d) of this Section and allocable to the
        Auction Rate Notes on each Auction Rate Distribution Date.

               Subject to the provisions of Sections 7.05 and 7.07 hereof, the
        Issuer hereby certifies that the amounts paid to the Auction Agent and
        the Broker-Dealers pursuant to clause (i) above and clause (i) of
        subsection (d) of this Section shall not in any one Fiscal Year exceed
        the amount or percentage designated therefor in the cash flows provided
        to each Rating Agency on the Date of Issuance, unless the Issuer, after
        furnishing each Rating Agency with revised cash flows, shall have
        received a Rating Confirmation.

               Amounts retained in the Collection Fund pursuant to paragraphs
        (iii), (iv) and (vi) of subsection (d) of this Section and not
        distributed pursuant to this subsection (c) shall be used on the next
        Quarterly Distribution Date.

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<PAGE>

                (d) PAYMENTS ON QUARTERLY DISTRIBUTION DATES. The Administrator
        shall instruct the Trustee in writing no later than the Determination
        Date preceding each Quarterly Distribution Date (based on the
        information contained in a certificate of the Administrator (in the form
        set forth as Exhibit D hereto) and the related Servicer's Report, if
        applicable) to make the following deposits and distributions from the
        Available Funds in the Collection Fund received during the immediately
        preceding Collection Period (including any amounts transferred from the
        Capitalized Interest Fund pursuant to Section 5.03 hereof, the
        Acquisition Fund pursuant to Section 5.02 hereof and the Reserve Fund
        pursuant to Section 5.05(b) and (c) hereof) to the Persons or to the
        account specified below on such Quarterly Distribution Date, in the
        following order of priority, and the Trustee shall comply with such
        instructions, provided, however, that if the Available Funds received
        during the immediately preceding Collection Period are not sufficient to
        make the payments or deposits required pursuant to clauses (i) through
        (vi) of this subsection (d), then, after any required transfers from the
        Capitalized Interest Fund, the Acquisition Fund and the Reserve Fund,
        any other Available Funds on deposit in the Collection Fund, which the
        Administrator would have deemed Available Funds for the current
        Collection Period, may be used to make the payments or deposits required
        pursuant to clauses (i) through (vi) of this subsection (d):

                        (i) to pay to the Master Servicer, the Trustee, the
                Delaware Trustee and, if such Quarterly Distribution Date is
                also an Auction Rate Distribution Date, the Broker-Dealers and
                the Auction Agent, pro rata, based on amounts owed to each such
                party, without preference or priority of any kind, the Servicing
                Fee, the Trustee Fee, the Delaware Trustee Fee, the
                Broker-Dealer Fees and the Auction Agent Fee, respectively, due
                on such Quarterly Distribution Date, in each case, together with
                such fees remaining unpaid from prior Distribution Dates (and,
                in the case of the Servicing Fees, prior Monthly Servicing
                Payment Dates);

                        (ii) to pay to the Administrator, the Administration Fee
                due on such Quarterly Distribution Date and all unpaid
                Administration Fees from prior Quarterly Distribution Dates;

                        (iii) (A) to pay to the Class A Noteholders of each
                Class of the Class A Notes, the portion of the Class A
                Noteholders' Interest Distribution Amount payable to such Class
                on such Quarterly Distribution Date, and (B) to the
                Counterparty, any Issuer Derivative Payments owed to such
                Counterparty on such Quarterly Distribution Date (excluding
                Termination Payments other than Priority Termination Payments),
                pro rata, based on amounts owed to each such party, without
                preference or priority of any kind;

                        (iv) (A) to pay to the Class B Noteholders of such Class
                of the Class B Notes for which such date is a Distribution Date,
                the portion of the Class B Noteholders' Interest Distribution
                Amount payable to such Class on such Quarterly Distribution
                Date, and (B) to retain in the Collection Fund for the Class B-2
                Notes, if such date is not an Auction Rate Distribution Date for
                the Class B-2 Notes, the amount of the Class B-2 Noteholders'
                Interest Distribution Amount that has accrued to such Quarterly
                Distribution Date, pro rata, based on amounts owed to each such
                party, without preference or priority of any kind; and

                                       52
<PAGE>

                        (v) to the Depositor, an amount equal to the unpaid
                interest accrued on the Financed Eligible Loans subsequent to
                the Cutoff Date but prior to the Date of Issuance, until such
                amount has been paid in full;

                        (vi) to retain in the Collection Fund the amounts
                estimated to be payable on each Auction Rate Distribution Date
                that occurs prior to the next Quarterly Distribution Date (in
                each case to be distributed on each Auction Rate Distribution
                Date in accordance with subsection (c) of this Section):

                                (A) the Broker-Dealer Fees and the Auction Agent
                        Fee, respectively, due on any such Auction Rate
                        Distribution Date; and

                                (B) the Class B-2 Noteholders' Interest
                        Distribution Amount estimated to be payable on any such
                        Auction Rate Distribution Date (less the amount, if any,
                        retained pursuant to paragraph (iv)(B) of this
                        subsection (d));

                        (vii) to the Class A Noteholders, the Class A Principal
                Distribution Amount in the following order:

                                (A) to pay to the Class A-1 Noteholders until
                        the Class A-1 Notes have been paid in full;

                                (B) to pay to the Class A-2 Noteholders until
                        the Class A-2 Notes have been paid in full;

                                (C) to pay to the Class A-3 Noteholders until
                        the Class A-3 Notes have been paid in full; and

                                (D) to pay to the Class A-4 Noteholders until
                        the Class A-4 Notes have been paid in full;

                        (viii) on and after the Stepdown Date, and provided that
                no Trigger Event is in effect on such Quarterly Distribution
                Date, to the Class B Noteholders, the Class B Principal
                Distribution Amount in the following order:

                                (A) to pay to the Class B-1 Noteholders until
                        the Class B-1 Notes have been paid in full; and

                                (B) to pay to the Class B-2 Noteholders until
                        the Class B-2 Notes have been paid in full;

                        (ix) to deposit to the Reserve Fund, the amount, if any,
                necessary to reinstate the balance of the Reserve Fund up to the
                Specified Reserve Fund Balance;

                        (x) to pay to the Master Servicer, the aggregate unpaid
                amount of any Carryover Servicing Fees, if any;

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                        (xi) to pay, or allocate to, the Class B-2 Noteholders
                any accrued and unpaid Auction Rate Carry-Over Amounts for such
                Class then due and payable;

                        (xii) to pay to the Counterparties, pro rata, without
                preference or priority of any kind, any accrued and unpaid
                Termination Payments due to each such Counterparty under the
                applicable Derivative Product;

                        (xiii) in the event the Financed Eligible Loans are not
                sold pursuant to Sections 10.03 or 10.04 hereof, to pay as an
                accelerated payment of principal balance of the Notes then
                Outstanding, to the Noteholders in the same order and priority
                as is set forth in Sections 5.04(d)(vii)(A) through (F) and
                5.04(d)(viii)(A) and (B) hereof until the principal amount of
                the Notes is paid in full; and

                        (xiv) subject to the remaining provisions of this
                Section, to pay to the Issuer any remaining Available Funds.

               Amounts properly distributed to the Issuer pursuant to clause (v)
        or (xiv) of this subsection (d) shall be deemed released from the Trust
        Estate and the security interest therein granted to the Trustee, and the
        Issuer shall in no event thereafter be required to refund any such
        distributed amounts.

               The amounts to be retained in the Collection Fund pursuant to
        clause (vi)(A) of this subsection (d) shall be estimated by the
        Administrator based upon the Broker-Dealer Fees and Auction Agent Fees
        set forth in the existing Broker-Dealer Agreements and the Auction Agent
        Agreement. The amounts to be retained in the Collection Fund pursuant to
        clause (vi)(B) of this subsection (d) shall be estimated by the
        Administrator based upon the current interest rates on the Auction Rate
        Notes.

               Any amounts allocated to the Auction Rate Notes as Auction Rate
        Carry-Over Amount pursuant to clause (xi) of this subsection (d) shall
        be paid to the applicable Noteholders on the next Auction Rate
        Distribution Date pursuant to subsection (c) of this Section.

               Subject to the provisions of Sections 7.05 and 7.07 hereof, the
        Issuer hereby certifies that the amounts paid to the Trustee, the
        Auction Agent, the Broker-Dealers and the Delaware Trustee (but not the
        Master Servicer) pursuant to clause (i) above and clause (i) of
        subsection (c) of this Section and the Administration Fee pursuant to
        clause (ii) above, shall not in any one Fiscal Year exceed the amount or
        percentage designated therefor in the cash flows provided to each Rating
        Agency on the Date of Issuance, unless the Issuer, after furnishing each
        Rating Agency with revised cash flows, shall have received a Rating
        Confirmation.

                (e) DETERMINATION, ALLOCATION AND PAYMENT OF PRINCIPAL
        DISTRIBUTION AMOUNT. The Class A Principal Distribution Amount and the
        Class B Principal Distribution Amount will be allocated for the Notes
        only on Quarterly Distribution Dates. If a Class of LIBOR Rate Notes is
        allocated some or all of the Class A Principal Distribution Amount or
        the Class B Principal Distribution Amount on a Quarterly Distribution
        Date, that Class will be paid such amount on such Quarterly Distribution
        Date. If the Auction Rate Notes are allocated some or all of the Class B
        Principal Distribution Amount on a Quarterly Distribution Date, the
        Class B Principal Distribution Amount allocated to the Auction Rate
        Notes will be used to redeem such Auction Rate Notes on the first
        Auction Rate Distribution Date after such Quarterly Distribution Date
        for which notice of redemption can be given pursuant to subsection (h)
        of this Section.

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                (f) ALLOCATIONS OF FUNDS AMONG REGISTERED OWNERS OF AUCTION RATE
        NOTES. If less than all of the Auction Rate Notes are to be paid or
        allocated principal in an amount sufficient to cover the full amount
        payable on the Auction Rate Notes, the particular Auction Rate Notes to
        be paid shall be selected by the Trustee by random lots of $25,000. If
        there are any amounts available to pay principal to the Auction Rate
        Notes that are not in $25,000 increments, the Trustee shall retain such
        amounts in the Collection Fund to pay principal to the Auction Rate
        Notes on a later Auction Rate Distribution Date.

                (g) REDEMPTION OF AUCTION RATE NOTES GENERALLY; REDEMPTION DATE
        AND REDEMPTION PRICE. The Auction Rate Notes shall be subject to
        redemption pursuant to subsections 5.04(e) and (i) of this Section and
        as otherwise provided in subsection (h) of this Section. The redemption
        price (the "Redemption Price") for any Auction Rate Notes shall be 100%
        of the outstanding principal balance of such Auction Rate Notes plus
        interest accrued thereon through the redemption date (the "Redemption
        Date").

                (h) NOTICE OF REDEMPTION AND PURCHASE. Notice of redemption with
        respect to the Auction Rate Notes shall be given by the Trustee by first
        class mail, postage prepaid, mailed no later than 10 days prior to the
        Redemption Date to the Registered Owners of the Auction Rate Notes to be
        redeemed at the address of such Registered Owner appearing in the note
        register; but neither failure to give such notice nor any defect in any
        notice so given shall affect the validity of the proceedings for
        redemption of any Auction Rate Note not affected by such failure or
        defect. So long as any such Auction Rate Notes are maintained in book
        entry form, the Trustee shall treat the Clearing Agency as the sole
        Registered Owner of such Auction Rate Notes. All notices of redemption
        shall state (i) the Redemption Date, (ii) the Redemption Price, (iii)
        the name (including Class designation), the Note Final Maturity Date and
        CUSIP number of each of the Auction Rate Notes to be redeemed, (iv) the
        principal amount of Auction Rate Notes to be redeemed, and, if less than
        all Outstanding Auction Rate Notes of a Class are to be redeemed, the
        identification (and, in the case of partial redemption, the respective
        principal amounts) of the Auction Rate Notes to be redeemed, (v) that,
        on the Redemption Date, the Redemption Price on each such Auction Rate
        Note will become due and payable and that interest on each such Auction
        Rate Note shall cease to accrue on and after such date and (vi) the
        place or places where such Auction Rate Notes are to be surrendered for
        payment of the Redemption Price thereof. Within 60 days after any
        Redemption Date, a second notice of redemption shall be given by the
        Trustee, in the manner described above, to the Registered Owner of an
        Auction Rate Note that was not presented for redemption within 30 days
        after the Redemption Date. Following provision of notice, the Redemption
        Price will become due and payable on the Redemption Date, and interest
        shall cease to accrue on the Auction Rate Notes to be redeemed. Upon
        surrender of any such Auction Rate Note for redemption in accordance
        with such notice, such Auction Rate Note shall be paid at the Redemption
        Price. If any Auction Rate Note called for redemption shall not be so
        paid upon surrender thereof for redemption, the Redemption Price and, to
        the extent lawful, interest thereon shall, until paid, bear interest
        from the Redemption Date at the interest rate borne by the Auction Rate
        Note on the Redemption Date.

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<PAGE>

               Any Auction Rate Note which is to be redeemed only in part shall
        be surrendered to the Trustee (with, if the Trustee so requires, due
        endorsement by, or a written instrument of transfer in form satisfactory
        to the Trustee duly executed by, the Registered Owner thereof or his,
        her or its attorney duly authorized in writing) and an Authorized
        Representative shall execute and the Trustee shall authenticate and
        deliver to the Registered Owner of such Auction Rate Note, without
        service charge (such charge to be paid by the Issuer), a new Auction
        Rate Note or Auction Rate Notes of any Authorized Denomination or
        Authorized Denominations, in aggregate outstanding principal balance
        equal to the unredeemed portion of the principal of the Auction Rate
        Note so surrendered. Any Auction Rate Note with respect to which a
        partial distribution of principal is made shall remain Outstanding in
        the then current outstanding principal balance. The Trustee shall retain
        a record of the outstanding principal balance of each Auction Rate Note
        any portion of the principal of which has been distributed.

                (i) OPTIONAL REDEMPTION FROM SALE OF FINANCED ELIGIBLE LOANS.
        The Notes shall be subject to redemption from the proceeds of a sale of
        Financed Eligible Loans in accordance with Section 10.03 or 10.04 hereof
        on any Quarterly Distribution Date.

        SECTION 5.05. RESERVE FUND.

                (a) On the Date of Issuance, the Trustee shall deposit
        $6,038,576 into the Reserve Fund. Thereafter, the Trustee shall transfer
        to the Reserve Fund from the Collection Fund all amounts designated for
        transfer thereto pursuant to Section 5.04(d)(ix) hereof.

                (b) On each Monthly Servicing Payment Date or Distribution Date,
        to the extent there are insufficient Available Funds in the Collection
        Fund to make one or more of the transfers required by Sections 5.04(b)
        (other than transfers to fund "add-on consolidation loans" or repurchase
        student loans from the Master Servicer, any Subservicer or any Guaranty
        Agency as described in clause (a)(i) and (iii) of the definition of
        Available Funds), 5.04(c)(i) and (c)(ii) hereof and 5.04(d)(i) through
        (d)(vi) hereof, then the Administrator shall instruct the Trustee in
        writing to withdraw from the Reserve Fund on such Monthly Servicing
        Payment Date or Distribution Date, as the case may be, an amount equal
        to such deficiency and to deposit such amount in the Collection Fund to
        the extent moneys are not available to make such transfers from the
        Capitalized Interest Fund pursuant to Section 5.03 hereof or from the
        Acquisition Fund pursuant to Section 5.02 hereof. Additionally, if on
        the Note Final Maturity Date for a Class of Notes, and after giving
        effect to the distribution of the Available Funds on such Note Final
        Maturity Date, the principal amount of such Class of Notes will not be
        reduced to zero, the Administrator shall instruct the Trustee in writing
        to withdraw from the Reserve Fund on such Note Final Maturity Date an
        amount equal to the amount needed to reduce the principal amount of such
        Class of Notes to zero and to deposit such amount in the Collection Fund
        for application to payment of the Outstanding Amount of such Class of
        Notes.

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<PAGE>

                (c) After giving effect to subsection (b) of this Section, if
        the amount on deposit in the Reserve Fund on any Quarterly Distribution
        Date is greater than the Specified Reserve Fund Balance for such
        Quarterly Distribution Date, the Administrator shall instruct the
        Trustee in writing to withdraw from the Reserve Fund on such Quarterly
        Distribution Date an amount equal to such excess and to deposit such
        amount in the Collection Fund.

                (d) On the final Distribution Date upon termination of the trust
        and following the payment in full of the Outstanding Amount of the Notes
        and of all other amounts (other than unpaid Issuer Derivative Payments
        and Carryover Servicing Fees) owing or to be distributed hereunder to
        Noteholders, the Trustee, the Master Servicer, the Administrator, the
        Auction Agent, the Broker-Dealers, the Delaware Trustee or the
        Counterparties (excluding Termination Payments other than Priority
        Termination Payments), to the extent that Available Funds on such date
        are insufficient to make the following payments, amounts remaining in
        the Reserve Fund shall be used first to pay any unpaid Issuer Derivative
        Payments and second to pay any Carryover Servicing Fees. Any amount
        remaining on deposit in the Reserve Fund after such payments have been
        made shall be released to the Issuer. The Issuer shall in no event be
        required to refund any amounts properly distributed pursuant to this
        subsection (d).

                (e) Anything in this Section to the contrary notwithstanding, if
        the market value of securities and cash in the Reserve Fund is on any
        Distribution Date sufficient to pay the remaining principal amount of
        and interest accrued on the Notes, and to pay any unpaid Issuer
        Derivative Payments and Carryover Servicing Fees, such amount will be so
        applied on such Distribution Date and the Administrator shall instruct
        the Trustee in writing to make such payments.

        SECTION 5.06. DEPARTMENT REBATE FUND. On or before the 10th calendar day
of each month (or, if such date is not a Business Day, the next Business Day),
the Trustee shall deposit into the Department Rebate Fund from the Collection
Fund pursuant to Section 5.04(b) hereof the amount necessary to bring the
balance of the Department Rebate Fund to the Department Rebate Interest Amount
for such date. Upon written instructions from the Administrator to the Trustee,
the Trustee shall (i) pay to the Department an amount equal to the Department
Rebate Interest Amount due on a Department Rebate Payment Date, FIRST, from
amounts on deposit in the Department Rebate Fund and, SECOND, from the
Collection Fund pursuant to Section 5.04(b) hereof or (ii) if the Department has
deducted the Department Rebate Interest Amount from Interest Subsidy Payments or
Special Allowance Payments due to the Issuer, transfer the amounts on deposit in
the Department Rebate Fund to the Collection Fund.

        SECTION 5.07. INVESTMENT OF FUNDS HELD BY TRUSTEE. The Trustee is hereby
directed to enter into the Investment Agreement. In addition, the Trustee shall
invest money held for the credit of any Fund or Account or Subaccount held by
the Trustee hereunder as directed in writing (or orally, confirmed in writing)
by an Authorized Representative, to the fullest extent practicable and
reasonable, in Investment Securities which shall mature or be redeemed at the
option of the holder prior to the respective dates when the money held for the
credit of such Fund or Account will be required for the purposes intended. In
the absence of any such direction and to the extent practicable, the Trustee

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<PAGE>

shall invest amounts held hereunder in those Investment Securities described in
clause (k) of the definition of the Investment Securities. All such investments
shall be held by (or by any custodian on behalf of) the Trustee for the benefit
of the Issuer; provided that on the day upon which such interest is paid, all
interest and other investment income collected (net of losses and investment
expenses) on funds on deposit therein shall be deposited into the Collection
Fund. The Trustee and the Issuer hereby agree that unless an Event of Default
shall have occurred hereunder, the Issuer acting by and through an Authorized
Representative shall be entitled to, and shall, provide written direction or
oral direction confirmed in writing to the Trustee with respect to any
discretionary acts required or permitted of the Trustee under any Investment
Securities and the Trustee shall not take such discretionary acts without such
written direction.

        The Investment Securities purchased shall be held by the Trustee and
shall be deemed at all times to be part of such Fund or Account or Subaccounts
or combination thereof, and the Trustee shall inform the Issuer of the details
of all such investments. Upon direction in writing (or orally, confirmed in
writing) from an Authorized Representative, the Trustee shall use its best
efforts to sell at the best price obtainable, or present for redemption, any
Investment Securities purchased by it as an investment whenever it shall be
necessary to provide money to meet any payment from the applicable Fund. The
Trustee shall advise the Issuer in writing, on or before the fifteenth day of
each calendar month (or such later date as reasonably consented to by the
Issuer), of all investments held for the credit of each Fund in its custody
under the provisions of this Indenture as of the end of the preceding month and
the value thereof, and shall list any investments which were sold or liquidated
for less than the par value thereof, plus accrued but unpaid interest at the
time thereof.

        Money in any Fund constituting a part of the Trust Estate may be pooled
for the purpose of making investments and may be used to pay accrued interest on
Investment Securities purchased. The Trustee and its affiliates may act as
principal or agent in the acquisition or disposition of any Investment
Securities.

        Notwithstanding the foregoing, the Trustee shall not be responsible or
liable for any losses on investments made by it hereunder or for keeping all
Funds held by it, fully invested at all times, its only responsibility being to
comply with the investment instructions of the Issuer or its designee in a
non-negligent manner.

        The Issuer acknowledges that to the extent the regulations of the
Comptroller of the Currency or other applicable regulatory agency grant the
Issuer the right to receive brokerage confirmations of security transactions,
the Issuer waives receipt of such confirmations.

        SECTION 5.08. RELEASE.

                (a) The Trustee shall, upon Issuer Order and subject to the
        provisions of this Indenture, take all actions reasonably necessary to
        effect the release of any Financed Eligible Loans from the lien of this
        Indenture to the extent the terms hereof permit the sale, disposition or
        transfer of such Financed Eligible Loans.

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<PAGE>

                (b) Subject to the payment of its fees and expenses pursuant to
        Sections 7.05 and 7.07 hereof, the Trustee may, and when required by the
        provisions of this Indenture shall, execute instruments to release
        property from the lien of this Indenture, or convey the Trustee's
        interest in the same, in a manner and under circumstances that are not
        inconsistent with the provisions of this Indenture. No party relying
        upon an instrument executed by the Trustee as provided in this Article
        shall be bound to ascertain the Trustee's authority, inquire into the
        satisfaction of any conditions precedent or see to the application of
        any moneys.

                (c) The Trustee shall, at such time as there are no Notes
        Outstanding and all sums due the Trustee pursuant to Sections 7.05 and
        7.07 hereof and all amounts payable to the Master Servicer, each
        Subservicer, the Administrator, the Auction Agent, the Broker-Dealers,
        the Delaware Trustee and the Counterparties 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 Funds and Accounts.

                (d) Subject to the provisions of this Indenture, the Trustee
        shall release property from the lien of this Indenture only upon receipt
        of an Issuer Order, an Opinion of Counsel and Independent Certificates
        in accordance with Sections 314(c) and 314(d)(1) of the Trust Indenture
        Act or an Opinion of Counsel in lieu of such Independent Certificates to
        the effect that the Trust Indenture Act does not require any such
        Independent Certificates.

                (e) Each Registered Owner, by the acceptance of a Note,
        acknowledges that from time to time the Trustee shall release the lien
        of this Indenture on any Financed Eligible Loan to be sold or
        transferred pursuant to Section 5.02 hereof, and each Registered Owner,
        by the acceptance of a Note, consents to any such release.

                                   ARTICLE VI

                              DEFAULTS AND REMEDIES

        SECTION 6.01. EVENTS OF DEFAULT DEFINED. For the purpose of this
Indenture, the following events are hereby defined as, and are declared to be,
"Events of Default":

                (a) default in the due and punctual payment of any interest on
        any Note when the same becomes due and payable, and such default shall
        continue for a period of five (5) days; provided, however, that a
        default in the due and punctual payment of any interest on any Class B
        Note shall not be an Event of Default if any Class A Notes are
        Outstanding;

                (b) default in the due and punctual payment of the principal of
        any Note when the same becomes due and payable on the related Note Final
        Maturity Date; provided, however, that a default in the due and punctual
        payment of principal on any Class B Note shall not be an Event of
        Default if any Class A Notes are Outstanding;

                                       59
<PAGE>

                (c) default in the performance or observance of any other of the
        covenants, agreements or conditions on the part of the Issuer to be
        kept, observed and performed contained in this Indenture or in the
        Notes, and continuation of such default for a period of 90 days after
        written notice thereof by the Trustee to the Issuer; and

                (d) the occurrence of an Event of Bankruptcy.

        Any notice herein provided to be given to the Issuer with respect to any
default shall be deemed sufficiently given if sent by registered mail with
postage prepaid to the Person to be notified, addressed to such Person at the
post office address as shown in Section 9.01 hereof or such other address as may
hereafter be given as the principal office of the Issuer in writing to the
Trustee by an Authorized Representative. The Trustee may give any such notice in
its discretion and shall give such notice if requested to do so in writing by
the Registered Owners of at least 51% of the collective aggregate principal
amount of the Highest Priority Obligations at the time Outstanding.

        SECTION 6.02. REMEDY ON DEFAULT; POSSESSION OF TRUST ESTATE. Subject to
Sections 6.08, 7.05 and 7.07 hereof, upon the happening and continuance of any
Event of Default, the Trustee or by its attorneys or agents may enter into and
upon and take possession of such portion of the Trust Estate as shall be in the
custody of others, and all property comprising the Trust Estate, and each and
every part thereof, and exclude the Issuer and its agents, servants and
employees wholly therefrom, and have, hold, use, operate, manage, and control
the same and each and every part thereof, and in the name of the Issuer or
otherwise, as they shall deem best, conduct the business thereof and exercise
the privileges pertaining thereto and all the rights and powers of the Issuer
and use all of the then existing Trust Estate for that purpose, and collect and
receive all charges, income and Available Funds of the same and of every part
thereof, and after deducting therefrom all expenses incurred hereunder and all
other proper outlays herein authorized, and all payments which may be made as
just and reasonable compensation for its own services, and for the services of
its attorneys, agents, and assistants, the Trustee shall apply the rest and
residue of the money received by the Trustee as follows:

               FIRST, to the Trustee and the Delaware Trustee, any Trustee Fee
        and any Delaware Trustee Fee, respectively due and owing;

               SECOND, to the Master Servicer, the Auction Agent and the
        Broker-Dealers, pro rata, without preference or priority of any kind,
        according to the amounts due and payable to each such party, any
        Servicing Fees, Auction Agent Fee and Broker-Dealer Fees, respectively,
        due to each such party and remaining unpaid;

               THIRD, pro rata, based on amounts due and owing, to (i) the
        Counterparties, pro rata, without preference or priority of any kind, in
        proportion to their respective entitlements under the applicable
        Derivative Products (excluding all Termination Payments other than
        Priority Termination Payments) and (ii) to the Class A Noteholders of
        each Class for amounts due and unpaid on each such Class of Class A
        Notes for interest, ratably, without preference or priority of any kind,
        according to the amounts due and payable on each such Class of Class A
        Notes for such interest;

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<PAGE>

               FOURTH, to the Class A Noteholders for amounts due and unpaid on
        the Class A Notes for principal, ratably, without preference or priority
        of any kind, according to the amounts due and payable on the Class A
        Notes for principal;

               FIFTH, to the Class B Noteholders for amounts due and unpaid on
        the Class B Notes for interest, ratably, without preference or priority
        of any kind, according to the amounts due and payable on the Class B
        Notes for such interest;

               SIXTH, to the Class B Noteholders for amounts due and unpaid on
        the Class B Notes for principal, ratably, without preference or priority
        of any kind, according to the amounts due and payable on the Class B
        Notes for principal;

               SEVENTH, to the Class B-2 Noteholders, all Auction Rate
        Carry-Over Amounts then due and unpaid;

               EIGHTH, to the Counterparties, in proportion to the respective
        entitlements under the applicable Derivative Product Agreement, ratably,
        without preference or priority of any kind, for any Termination Payments
        due and any other unpaid Issuer Derivative Payments;

               NINTH, to the Master Servicer, for any unpaid Carryover Servicing
        Fees; and

               TENTH, to the Issuer, for distribution in accordance with the
        terms of the Administration Agreement and the Trust Agreement.

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

        SECTION 6.03. REMEDIES ON DEFAULT; ADVICE OF COUNSEL. Upon the happening
of any Event of Default, the Trustee may proceed to protect and enforce the
rights of the Trustee and the Registered Owners in such manner as counsel for
the Trustee may advise, whether for the specific performance of any covenant,
condition, agreement or undertaking herein contained, or in aid of the execution
of any power herein granted, or for the enforcement of such other appropriate
legal or equitable remedies as, in the opinion of such counsel, may be more
effectual to protect and enforce the rights aforesaid.

        SECTION 6.04. REMEDIES ON DEFAULT; SALE OF TRUST ESTATE. Upon the
happening of any Event of Default and if the principal of all of the Outstanding
Obligations shall have been declared due and payable, then and in every such
case, and irrespective of whether other remedies authorized shall have been
pursued in whole or in part, the Trustee may sell, with or without entry, to the
highest bidder the Trust Estate, and all right, title, interest, claim and
demand thereto and the right of redemption thereof, at any such place or places,
and at such time or times and upon such notice and terms as may be required by
law. Upon such sale the Trustee may make and deliver to the purchaser or
purchasers a good and sufficient assignment or conveyance for the same, which
sale shall be a perpetual bar both at law and in equity against the Issuer and
all Persons claiming such properties. No purchaser at any sale shall be bound to

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see to the application of the purchase money or to inquire as to the
authorization, necessity, expediency or regularity of any such sale. The Trustee
is hereby irrevocably appointed the true and lawful attorney-in-fact of the
Issuer, in its name and stead, to make and execute all bills of sale,
instruments of assignment and transfer and such other documents of transfer as
may be necessary or advisable in connection with a sale of all or part of the
Trust Estate, but the Issuer, if so requested by the Trustee, shall ratify and
confirm any sale or sales by executing and delivering to the Trustee or to such
purchaser or purchasers all such instruments as may be necessary, or in the
judgment of the Trustee, proper for the purpose which may be designated in such
request. In addition, the Trustee may proceed to protect and enforce the rights
of the Trustee and the Registered Owners of the Obligations in such manner as
counsel for the Trustee may advise, whether for the specific performance of any
covenant, condition, agreement or undertaking herein contained, or in aid of the
execution of any power herein granted, or for the enforcement of such other
appropriate legal or equitable remedies as may in the opinion of such counsel,
be more effectual to protect and enforce the rights aforesaid. The Trustee shall
take any such action or actions if requested to do so in writing by the
Registered Owners of at least a majority of the principal amount of the Highest
Priority Obligations at the time Outstanding.

        Notwithstanding the foregoing, the Trustee is prohibited from selling
the Financed Eligible Loans following an Event of Default, other than a default
in the payment of any principal or interest on any Note, unless:

                (a) The Registered Owners of all of the Highest Priority
        Obligations at the time Outstanding consent to such a sale;

                (b) The proceeds of such a sale will be sufficient to discharge
        all the Outstanding Obligations pursuant to Article X hereof at the date
        of such a sale; or

                (c) The Issuer, or the Administrator on behalf of the Issuer,
        determines that the collections on the Financed Eligible Loans would not
        be sufficient on an ongoing basis to make all payments on such
        Obligations as such payments would have become due if such Obligations
        had not been declared due and payable, and the Trustee obtains the
        consent of the Registered Owners of at least 66-2/3% of the aggregate
        principal amount of the Highest Priority Obligations at the time
        Outstanding.

Such a sale shall also require the consent of all the Registered Owners of the
Class B Notes unless the proceeds of such a sale would be sufficient to
discharge the Class B Notes pursuant to Article X hereof at the date of such a
sale.

        SECTION 6.05. APPOINTMENT OF RECEIVER. In case an Event of Default
occurs, and if all of the Outstanding Obligations shall have been declared due
and payable and in case any judicial proceedings are commenced to enforce any
right of the Trustee or of the Registered Owners under this Indenture or
otherwise, then as a matter of right, the Trustee shall be entitled to the
appointment of a receiver of the Trust Estate and of the earnings, income or
revenue, rents, issues and profits thereof with such powers as the court making
such appointments may confer.

        SECTION 6.06. RESTORATION OF POSITION. In case the Trustee shall have
proceeded to enforce any rights under this Indenture by sale or otherwise, and
such proceedings shall have been discontinued, or shall have been determined
adversely to the Trustee, then and in every such case to the extent not
inconsistent with such adverse decree, the Issuer, the Trustee and the
Registered Owners shall be restored to their former respective positions and the
rights hereunder in respect to the Trust Estate, and all rights, remedies and
powers of the Trustee and of the Registered Owners shall continue as though no
such proceeding had been taken.

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        SECTION 6.07. APPLICATION OF SALE PROCEEDS. The proceeds of any sale of
the Trust Estate, together with any funds at the time held by the Trustee and
not otherwise appropriated, shall be applied by the Trustee as set forth in
Section 6.02 hereof, and then to the Issuer or whomsoever shall be lawfully
entitled thereto.

        SECTION 6.08. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT. If an
Event of Default should occur and be continuing, then and in every such case the
Trustee or the Registered Owners of Obligations representing not less than a
majority of the Outstanding Amount of the Highest Priority Obligations may
declare all the Outstanding Obligations to be immediately due and payable, by a
notice in writing to the Issuer (and to the Trustee if given by the Registered
Owners), and upon any such declaration the unpaid principal amount of such
Outstanding Obligations, together with accrued and unpaid interest thereon
through the date of acceleration, shall become immediately due and payable,
subject, however, to Section 6.04 hereof.

        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 Trustee as hereinafter in this Article provided, the Registered
Owners of Obligations representing a majority of the collective aggregate
principal amount of the Highest Priority Obligations then Outstanding, by
written notice to the Issuer and the Trustee, may rescind and annul such
declaration and its consequences if:

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

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

                        (ii) all sums paid or advanced by the Trustee hereunder
                and the reasonable compensation, expenses, disbursements and
                advances of the Trustee, the Master Servicer, any Subservicer,
                the Delaware Trustee, the Auction Agent and the Broker-Dealers
                and their agents and counsel; and

                (b) all Events of Default, other than the nonpayment of the
        principal of the Obligations that has become due solely by such
        acceleration, have been cured or waived as provided in Section 6.14
        hereof.

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

        SECTION 6.09. REMEDIES NOT EXCLUSIVE. The remedies herein conferred upon
or reserved to the Trustee or the Registered Owners of Obligations are not
intended to be exclusive of any other remedy, but each remedy herein provided
shall be cumulative and shall be in addition to every other remedy given

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hereunder or now or hereafter existing, and every power and remedy hereby given
to the Trustee or to the Registered Owners of Obligations, or any supplement
hereto, may be exercised from time to time as often as may be deemed expedient.
No delay or omission of the Trustee or of any Registered Owner of Obligations to
exercise any power or right arising from any default hereunder shall impair any
such right or power or shall be construed to be a waiver of any such default or
to be acquiescence therein.

        SECTION 6.10. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
TRUSTEE. The Issuer covenants that if:

                (a) default is made in the payment of any installment of
        interest, if any, on any Notes when such interest becomes due and
        payable and such default continues for a period of five (5) days; or

                (b) default is made in the payment of the principal of (or
        premium, if any, on) any Notes at their Note Final Maturity Date,

then the Issuer will, upon demand of the Trustee, pay to the Trustee, for the
benefit of the Registered Owners, the whole amount then due and payable on such
Notes for principal (and premium, if any) and interest, with interest upon any
overdue principal (and premium, if any) and, to the extent that payment of such
interest shall be legally enforceable, upon any overdue installments of
interest, if any, at the rate or rates borne by or provided for in such Notes,
and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation,
fees, expenses, disbursements and advances of the Trustee and its agents and
counsel.

        If the Issuer fails to pay such amounts forthwith upon such demand, the
Trustee, in its own name and as Trustee of an express trust, may upon receiving
indemnification satisfactory to the Trustee institute a judicial proceeding for
the collection of the sums so due and unpaid, may prosecute such proceeding to
judgment or final decree, and may enforce the same against the Issuer or any
other obligor upon such Notes of such Class and collect the moneys adjudged or
decreed to be payable in the manner provided by law out of the property of the
Issuer or any other obligor upon such Notes, wherever situated.

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

        SECTION 6.11. DIRECTION OF TRUSTEE. Upon the happening of any Event of
Default, the Registered Owners of at least 51% of the collective aggregate
principal amount of the Highest Priority Obligations then Outstanding, shall
have the right by an instrument or instruments in writing delivered to the
Trustee to direct and control the Trustee as to the method of taking any and all
proceedings for any sale of any or all of the Trust Estate, or for the
appointment of a receiver, if permitted by law, and may at any time cause any

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proceedings authorized by the terms hereof to be so taken or to be discontinued
or delayed; provided, however, that such Registered Owners shall not be entitled
to cause the Trustee to take any proceedings which in the Trustee's opinion
would be unjustly prejudicial to non-assenting Registered Owners of Obligations,
but the Trustee shall be entitled to assume that the action requested by the
Registered Owners of at least 51% of the collective aggregate principal amount
of the Highest Priority Obligations then Outstanding will not be prejudicial to
any non-assenting Registered Owners unless the Registered Owners of more than
50% of the collective aggregate principal amount of the non-assenting Registered
Owners of such Obligations, in writing, show the Trustee how they will be
prejudiced. Provided, however, that anything in this Indenture to the contrary
notwithstanding, the Registered Owners of a majority of the collective aggregate
principal amount of the Highest Priority Obligations then Outstanding together
with the Registered Owners of a majority of the collective aggregate principal
amount of all other Obligations then Outstanding shall have the right, at any
time, by an instrument or instruments in writing executed and delivered to the
Trustee, to direct the method and place of conducting all proceedings to be
taken in connection with the enforcement of the terms and conditions of this
Indenture, or for the appointment of a receiver or any other proceedings
hereunder, provided that such direction shall not be otherwise than in
accordance with the provisions of law and of this Indenture. The provisions of
this Section shall be expressly subject to the provisions of Sections 7.01(c),
7.05 and 7.07 hereof.

        SECTION 6.12. RIGHT TO ENFORCE IN TRUSTEE. No Registered Owner of any
Obligation shall have any right as such Registered Owner to institute any suit,
action or proceedings for the enforcement of the provisions of this Indenture or
for the execution of any trust hereunder or for the appointment of a receiver or
for any other remedy hereunder, all rights of action hereunder being vested
exclusively in the Trustee, unless and until such Registered Owner shall have
previously given to the Trustee written notice of a default hereunder, and of
the continuance thereof, and also unless the Registered Owners of the requisite
principal amount of the Obligations then Outstanding shall have made written
request upon the Trustee and the Trustee shall have been afforded reasonable
opportunity to institute such action, suit or proceeding in its own name, and
unless the Trustee shall have been offered indemnity and security satisfactory
to it against the costs, expenses and liabilities to be incurred therein or
thereby, which offer of indemnity shall be an express condition precedent
hereunder to any obligation of the Trustee to take any such action hereunder,
and the Trustee for 30 days after receipt of such notification, request and
offer of indemnity, shall have failed to institute any such action, suit or
proceeding. It is understood and intended that no one or more Registered Owners
of the Obligations shall have the right in any manner whatever by his or their
action to affect, disturb or prejudice the lien of this Indenture or to enforce
any right hereunder except in the manner herein provided and for the equal
benefit of the Registered Owners of not less than a majority of the collective
aggregate principal amount of the Obligations then Outstanding.

        SECTION 6.13. PHYSICAL POSSESSION OF OBLIGATIONS NOT REQUIRED. In any
suit or action by the Trustee arising under this Indenture or on all or any of
the Obligations issued hereunder, or any supplement hereto, the Trustee shall
not be required to produce such Obligations, but shall be entitled in all things
to maintain such suit or action without their production.

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        SECTION 6.14. WAIVERS OF EVENTS OF DEFAULT. The Trustee may in its
discretion waive any Event of Default hereunder and its consequences and rescind
any declaration of acceleration of Obligations, and shall do so upon the written
request of the Registered Owners of at least a majority of the collective
aggregate principal amount of the Highest Priority Obligations then Outstanding;
provided, however, that there shall not be waived (a) any Event of Default in
the payment of the principal of or premium on any Outstanding Obligations at the
date of maturity thereof, or any default in the payment when due of the interest
on any such Obligations, unless prior to such waiver or rescission, all arrears
of interest or all arrears of payments of principal and all expenses of the
Trustee, in connection with such default shall have been paid or provided for;
or (b) any default in the payment of amounts set forth in Sections 7.05 and 7.07
hereof. In case of any such waiver or rescission, or in case any proceedings
taken by the Trustee on account of any such default shall have been discontinued
or abandoned or determined adversely to the Trustee, then and in every such case
the Issuer, the Trustee and the Registered Owners of Obligations shall be
restored to their former positions and rights hereunder respectively, but no
such waiver or rescission shall extend to or affect any subsequent or other
default, or impair any rights or remedies consequent thereon. The Trustee shall
give written notice to each Rating Agency of any waiver of an Event of Default
pursuant to this Section.

        SECTION 6.15. NOTICE OF DEFAULTS. Within 90 days after the occurrence of
any default hereunder with respect to the Notes, the Trustee shall transmit in
the manner and to the extent provided in Section 313(c) of the Trust Indenture
Act, notice of such default hereunder known to the Trustee, unless such default
shall have been cured or waived; provided, however, that, except in the case of
a default in the payment of the principal of (or premium, if any) or interest
with respect to any Note, or in the payment of any sinking fund installment with
respect to the Notes, the Trustee shall be protected in withholding such notice
if and so long as an authorized officer of the Trustee in good faith determines
that the withholding of such notice is in the interest of the Registered Owners
of the Notes. For the purpose of this Section, the term "default" means any
event which is, or after notice or lapse of time or both would become, an Event
of Default with respect to the Notes.

                                  ARTICLE VII

                                   THE TRUSTEE

SECTION 7.01. ACCEPTANCE OF TRUST. The Trustee hereby accepts the trusts imposed
upon it by this Indenture, and agrees to perform said trusts, but only upon and
subject to the following terms and conditions:

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

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

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

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                (b) In case an Event of Default has occurred and is continuing,
        the Trustee, in exercising the rights and powers vested in it by this
        Indenture, shall use the same degree of care and skill in their exercise
        as a prudent person would exercise or use under the circumstances in the
        conduct of his or her own affairs.

                (c) Before taking any action hereunder requested by Registered
        Owners, the Trustee may require that it be furnished an indemnity bond
        or other indemnity and security satisfactory to it by the Registered
        Owners, as applicable, for the reimbursement of all expenses to which it
        may be put and to protect it against all liability.

        SECTION 7.02. RECITALS OF OTHERS. The recitals, statements and
representations set forth herein and in the Notes shall be taken as the
statements of the Issuer, and the Trustee assumes no responsibility for the
correctness of the same. The Trustee makes no representations as to the title of
the Issuer in the Trust Estate or as to the security afforded thereby and
hereby, or as to the validity or sufficiency of this Indenture or of the Notes
issued hereunder, and the Trustee shall incur no responsibility in respect of
such matters.

        SECTION 7.03. AS TO FILING OF INDENTURE. The Trustee shall be under no
duty (a) to file or record, or cause to be filed or recorded, this Indenture or
any instrument supplemental hereto, (b) to procure any further order or
additional instruments of further assurance, (c) to see to the delivery to it of
any personal property intended to be mortgaged or pledged hereunder or
thereunder, (d) to do any act which may be suitable to be done for the better
maintenance of the lien or security hereof (other than the filing of any
continuation (but not initial) statements), or (e) to give notice of the
existence of such lien, or for extending or supplementing the same or to see
that any rights to the Trust Estate and Funds intended now or hereafter to be
transferred in trust hereunder are subject to the lien hereof. The Trustee shall
not be liable for failure of the Issuer to pay any tax or taxes in respect of
such property, or any part thereof, or the income therefrom or otherwise, nor
shall the Trustee be under any duty in respect of any tax which may be assessed
against it or the Registered Owners in respect of such property or pledged to
the Trust Estate. The Trustee agrees to prepare, request that the Issuer execute
(if such execution is necessary for any such filing) and file in a timely manner
(if received from the Issuer in a timely manner) with any necessary execution by
the Issuer, the continuation statements referred to herein; provided, that the
Trustee shall have no responsibility for the sufficiency, adequacy or priority
of any initial filing and in the absence of written notice to the contrary by
the Issuer or other Authorized Representative, may rely and shall be protected
in relying on all information and exhibits in such initial filings for the
purposes of any continuation statements.

        SECTION 7.04. TRUSTEE MAY ACT THROUGH AGENTS. The Trustee may execute
any of the trusts or powers hereof and perform any duty hereunder, either itself
or by or through its attorneys, agents or employees, and it shall not be
answerable or accountable for any default, neglect or misconduct of any such
attorneys, agents or employees, if reasonable care has been exercised in the
appointment. All reasonable costs incurred by the Trustee and all reasonable
compensation to all such persons as may reasonably be employed in connection
with the trusts hereof shall be paid by the Issuer.

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        SECTION 7.05. INDEMNIFICATION OF TRUSTEE. Other than with respect to its
duties to make payment on the Obligations when due, and its duty to pursue the
remedy of acceleration as provided in Sections 6.02 and 6.08 hereof, for each of
which no additional security or indemnity may be required, the Trustee shall be
under no obligation or duty to perform any act at the request of Registered
Owners or to institute or defend any suit in respect thereof unless properly
indemnified and provided with security to its satisfaction as provided in
Section 7.01(c) hereof. The Trustee shall not be required to take notice, or be
deemed to have knowledge, of any default or Event of Default of the Issuer
hereunder and may conclusively assume that there has been no such default or
Event of Default (other than an Event of Default described in Section 6.01(a) or
(b) hereof) unless and until it shall have been specifically notified in writing
at the address in Section 9.01 hereof of such default or Event of Default by (a)
the Registered Owners of the required percentages in principal amount of the
Obligations then Outstanding hereinabove specified or (b) an Authorized
Representative. However, the Trustee may begin suit, or appear in and defend
suit, execute any of the trusts hereby created, enforce any of its rights or
powers hereunder, or do anything else in its judgment proper to be done by it as
Trustee, without assurance of reimbursement or indemnity, and in such case the
Trustee shall be reimbursed or indemnified by the Registered Owners requesting
such action, if any, or the Issuer in all other cases, for all fees, costs and
expenses, liabilities, outlays and counsel fees and other reasonable
disbursements properly incurred in connection therewith, unless such costs and
expenses, liabilities, outlays and attorneys' fees and other reasonable
disbursements properly incurred in connection therewith are adjudicated to have
resulted from the negligence or willful misconduct of the Trustee. In
furtherance and not in limitation of this Section, the Trustee shall not be
liable for, and shall be held harmless by the Issuer from, following any Issuer
Orders, instructions or other directions upon which the Trustee is authorized to
rely pursuant to this Indenture or any other agreement to which it is a party.
If the Issuer or the Registered Owners, as appropriate, shall fail to make such
reimbursement or indemnification, the Trustee may reimburse itself from any
money in its possession under the provisions of this Indenture, subject only to
the prior lien of the Notes for the payment of the principal thereof, premium,
if any, and interest thereon from the Collection Fund. None of the provisions
contained in this Indenture or any other agreement to which it is a party shall
require the Trustee to act or to expend or risk its own funds or otherwise incur
individual financial liability in the performance of any of its duties or in the
exercise of any of its rights or powers if the Registered Owners shall not have
offered security and indemnity acceptable to it or if it shall have reasonable
grounds for believing that prompt repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it.

        The Issuer agrees to indemnify the Trustee for, and to hold it harmless
against, any loss, liability or expenses incurred without negligence or bad
faith on its part, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder, including the costs and
expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder arising
from the Trust Estate. The Issuer agrees to indemnify and hold harmless the

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Trustee against any and all claims, demands, suits, actions or other proceedings
and all liabilities, costs and expenses whatsoever caused by any untrue
statement or misleading statement or alleged untrue statement or alleged
misleading statement of a material fact contained in any offering document
distributed in connection with the issuance of the Notes or caused by any
omission or alleged omission from such offering document of any material fact
required to be stated therein or necessary in order to make the statements made
therein in the light of the circumstances under which they were made, not
misleading.

        SECTION 7.06. TRUSTEE'S RIGHT TO RELIANCE. The Trustee shall be
protected in acting upon any notice, resolution, request, consent, order,
certificate, report, appraisal, opinion, report or document of the Issuer, the
Administrator, the Master Servicer or a Subservicer or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
party or parties. The Trustee may consult with experts and with counsel (who may
but need not be counsel for the Issuer, the Trustee, or for a Registered Owner),
and the opinion of such counsel shall be full and complete authorization and
protection in respect of any action taken or suffered, and in respect of any
determination made by it hereunder in good faith and in accordance with the
opinion of such counsel.

        Whenever in the administration hereof the Trustee shall reasonably deem
it desirable that a matter be proved or established prior to taking, suffering
or omitting any action hereunder, the Trustee (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part, rely upon
a certificate signed by an Authorized Representative or an authorized officer of
the Administrator, the Master Servicer or a Subservicer.

        The Trustee shall not be liable for any action taken, suffered or
omitted by it in good faith and believed by it to be authorized or within the
discretion or rights or powers conferred upon it hereby; provided, however, that
the Trustee shall be liable for its negligence or willful misconduct in taking
such action.

        The Trustee is authorized to enter into agreements with other Persons,
in its capacity as Trustee, in order to carry out or implement the terms and
provisions of this Indenture. The Trustee shall not be liable with respect to
any action taken, suffered or omitted to be taken in good faith in accordance
with this Indenture or any other transaction document or at the direction of the
Registered Owners evidencing the appropriate percentage of the aggregate
principal amount of the Outstanding Notes relating to the time, method and place
of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture
or any other transaction document.

        SECTION 7.07. COMPENSATION OF TRUSTEE. Except as otherwise expressly
provided herein, all advances, counsel fees (including without limitation
allocated fees of in-house counsel) and other expenses reasonably made or
incurred by the Trustee in and about the execution and administration of the
trust hereby created and reasonable compensation to the Trustee for its services
in the premises shall be paid by the Issuer. The compensation of the Trustee
shall not be limited to or by any provision of law in regard to the compensation
of trustees of an express trust. The Trustee shall not materially increase the
Trustee Fee without giving the Issuer and each Rating Agency at least 90 days'
written notice prior to the beginning of a Fiscal Year. If not paid by the
Issuer, the Trustee shall have a lien against all money held pursuant to this
Indenture, subject only to the prior lien of the Obligations against the money
and investments in the Collection Fund for the payment of the principal thereof,
premium, if any, and interest thereon, for such reasonable compensation,
expenses, advances and counsel fees incurred in and about the execution of the
trusts hereby created and the exercise and performance of the powers and duties
of the Trustee hereunder and the cost and expense incurred in defending against
any liability in the premises of any character whatsoever (unless such liability
is adjudicated to have resulted from the negligence or willful misconduct of the
Trustee).

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        SECTION 7.08. CREDITOR RELATIONSHIPS. The Trustee shall comply with
Section 311(a) of the Trust Indenture Act, excluding any creditor relationship
listed in Section 311(b) of the Trust Indenture Act. A Trustee who has resigned
or been removed shall be subject to Section 311(a) of the Trust Indenture Act to
the extent indicated therein. The Trustee may act as depository for, and permit
any of its officers or directors to act as a member of, or act in any other
capacity in respect to, any committee formed to protect the rights of the
Registered Owners or to effect or aid in any reorganization growing out of the
enforcement of the Notes or of this Indenture, whether or not any such committee
shall represent the Registered Owners of more than 60% of the collective
aggregate principal amount of the Outstanding Obligations.

        SECTION 7.09. RESIGNATION OF TRUSTEE. The Trustee and any successor to
the Trustee may resign and be discharged from the trust created by this
Indenture by giving to the Issuer notice in writing which notice shall specify
the date on which such resignation is to take effect; provided, however, that
such resignation shall only take effect on the day specified in such notice if a
successor Trustee shall have been appointed pursuant to Section 7.11 hereof (and
is qualified to be the Trustee under the requirements of Section 7.11 hereof).
If no successor Trustee has been appointed by the date specified or within a
period of 90 days from the receipt of the notice by the Issuer, whichever period
is the longer, the Trustee may (a) appoint a temporary successor Trustee having
the qualifications provided in Section 7.11 hereof or (b) request a court of
competent jurisdiction to (i) require the Issuer to appoint a successor, as
provided in Section 7.11 hereof, within three days of the receipt of citation or
notice by the court, or (ii) appoint a Trustee having the qualifications
provided in Section 7.11 hereof. In no event may the resignation of the Trustee
be effective until a qualified successor Trustee shall have been selected and
appointed. In the event a temporary successor Trustee is appointed pursuant to
clause (a) above, the Issuer may remove such temporary successor Trustee and
appoint a successor thereto pursuant to Section 7.11 hereof.

        SECTION 7.10. REMOVAL OF TRUSTEE. The Trustee or any successor Trustee
may be removed (a) at any time by the Registered Owners of a majority of the
collective aggregate principal amount of the Highest Priority Obligations then
Outstanding, (b) by the Issuer for cause or upon the sale or other disposition
of the Trustee or its corporate trust functions or (c) by the Issuer without
cause so long as no Event of Default exists or has existed within the last 30
days, upon payment to the Trustee so removed of all money then due to it
hereunder and appointment of a successor thereto by the Issuer and acceptance
thereof by said successor. One copy of any such order of removal shall be filed
with the Delaware Trustee and the other with the Trustee so removed.

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        In the event a Trustee (or successor Trustee) is removed, by any person
or for any reason permitted hereunder, such removal shall not become effective
until (a) in the case of removal by the Registered Owners, such Registered
Owners by instrument or concurrent instruments in writing (signed and
acknowledged by such Registered Owners or their attorneys-in-fact) filed with
the Trustee removed have appointed a successor Trustee or otherwise the Issuer
shall have appointed a successor, and (b) the successor Trustee has accepted
appointment as such.

        SECTION 7.11. SUCCESSOR TRUSTEE. In case at any time the Trustee or any
successor Trustee shall resign, be dissolved, or otherwise shall be disqualified
to act or be incapable of acting, or in case control of the Trustee or of any
successor Trustee or of its officers shall be taken over by any public officer
or officers, a successor Trustee may be appointed by the Issuer by an instrument
in writing duly authorized by the Issuer. In the case of any such appointment by
the Issuer of a successor to the Trustee, the Issuer shall forthwith cause
notice thereof to be mailed to the Registered Owners of the Notes at the address
of each Registered Owner appearing on the note registration books maintained by
the Trustee, as registrar.

        Every successor Trustee appointed by the Registered Owners, by a court
of competent jurisdiction, or by the Issuer shall be a bank or trust company in
good standing, organized and doing business under the laws of the United States
or of a state therein, which has a reported capital and surplus of not less than
$50,000,000, be authorized under the law to exercise corporate trust powers, be
subject to supervision or examination by a federal or state authority, and be an
Eligible Lender so long as such designation is necessary to maintain guarantees
and federal benefits under the Higher Education Act with respect to the Financed
Eligible Loans originated under the Higher Education Act.

        SECTION 7.12. MANNER OF VESTING TITLE IN TRUSTEE. Any successor Trustee
appointed hereunder shall execute, acknowledge and deliver to its predecessor
Trustee, and also to the Issuer, an instrument accepting such appointment
hereunder, and thereupon such successor Trustee, without any further act, deed
or conveyance shall become fully vested with all the estate, properties, rights,
powers, trusts, duties and obligations of its predecessors in trust hereunder
(except that the predecessor Trustee shall continue to have the benefits to
indemnification hereunder together with the successor Trustee), with like effect
as if originally named as Trustee herein; but the Trustee ceasing to act shall
nevertheless, on the written request of an Authorized Representative, or an
authorized officer of the successor Trustee, execute, acknowledge and deliver
such instruments of conveyance and further assurance and do such other things as
may reasonably be required for more fully and certainly vesting and confirming
in such successor Trustee all the right, title and interest of the Trustee which
it succeeds, in and to the Trust Estate and such rights, powers, trusts, duties
and obligations, and the Trustee ceasing to act also, upon like request, pay
over, assign and deliver to the successor Trustee any money or other property or
rights subject to the lien of this Indenture, including any pledged securities
which may then be in its possession. Should any deed or instrument in writing
from the Issuer be required by the successor Trustee for more fully and
certainly vesting in and confirming to such new Trustee such estate, properties,
rights, powers and duties, any and all such deeds and instruments in writing
shall on request be executed, acknowledged and delivered by the Issuer.

        In case any of the Notes to be issued hereunder shall have been
authenticated but not delivered, any successor Trustee may adopt the certificate
of authentication of the Trustee or of any successor to the Trustee; and in case
any of the Notes shall not have been authenticated, any successor to the Trustee
may authenticate such Notes in its own name; and in all such cases such
certificate shall have the full force which it has anywhere in the Notes or in
this Indenture.

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        SECTION 7.13. ADDITIONAL COVENANTS BY THE TRUSTEE TO CONFORM TO THE
HIGHER EDUCATION ACT. The Trustee covenants that it will at all times be an
Eligible Lender under the Higher Education Act so long as such designation is
necessary, as determined by the Issuer, to maintain the guarantees and federal
benefits under the Higher Education Act with respect to the Financed Eligible
Loans, that it will acquire Eligible Loans originated under the Higher Education
Act in its capacity as an Eligible Lender and that it will not knowingly dispose
of or deliver any Financed Eligible Loans originated under the Higher Education
Act or any security interest in any such Financed Eligible Loans to any party
who is not an Eligible Lender so long as the Higher Education Act or Regulations
adopted thereunder require an Eligible Lender to be the owner or holder of such
Financed Eligible Loans; provided, however, that nothing above shall prevent the
Trustee from delivering the Eligible Loans to the Master Servicer, a Subservicer
or a Guaranty Agency.

        SECTION 7.14. RIGHT OF INSPECTION. A Registered Owner shall be permitted
at reasonable times during regular business hours and in accordance with
reasonable regulations prescribed by the Trustee to examine at the principal
office of the Trustee a copy of any report or instrument theretofore filed with
the Trustee relating to the condition of the Trust Estate.

        SECTION 7.15. LIMITATION WITH RESPECT TO EXAMINATION OF REPORTS. Except
as provided in this Indenture, the Trustee shall be under no duty to examine any
report or statement or other document required or permitted to be filed with it
by the Issuer.

        SECTION 7.16. SERVICING AGREEMENTS. The Trustee acknowledges the receipt
of copies of the Master Servicing Agreement and Subservicing Agreements
described in Section 4.04 hereof.

        SECTION 7.17. ADDITIONAL COVENANTS OF TRUSTEE. The Trustee, by the
execution hereof, covenants, represents and agrees that:

                (a) it will not exercise any of the rights, duties or privileges
        under this Indenture in such manner as would cause the Eligible Loans
        held or acquired under the terms hereof to be transferred, assigned or
        pledged as security to any person or entity other than as permitted by
        this Indenture; and

                (b) it will comply with the Higher Education Act and the
        Regulations and will, upon written notice from an Authorized
        Representative, the Secretary or a Guaranty Agency, use its reasonable
        efforts to cause this Indenture to be amended (in accordance with
        Section 8.01 hereof) if the Higher Education Act or Regulations are
        hereafter amended so as to be contrary to the terms of this Indenture.

        SECTION 7.18. NOTICES TO RATING AGENCIES. It shall be the duty of the
Issuer to notify each Rating Agency then rating any of the Notes of (a) any
amendment, change, expiration, extension or renewal of this Indenture, (b)
prepayment or defeasance of all the Notes, (c) any change in the Trustee, (d)
any other information reasonably required to be reported to each Rating Agency
under any Supplemental Indenture or (e) any amendment to or transfer of an
Investment Agreement; provided, however, the provisions of this Section do not
apply when such documents have been previously supplied to such Rating Agency
and the Trustee has received written evidence to such effect, all as may be
required by this Indenture. All notices required to be forwarded to the Rating
Agencies under this Section shall be sent in writing at the following addresses:

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        Via electronic delivery to Servicer_reports@sandp.com
        For any information not available in electronic format:
        Standard & Poor's Ratings Services
        a Division of the McGraw-Hill Companies, Inc.
        55 Water Street, 41st Floor
        New York, New York  10041-0003
        Attention:  ABS Surveillance Group

        Via electronic delivery to surveillance-abs-consumer@fitchratings.com
        For any information not available in electronic format:
        Fitch, Inc.
        One State Street Plaza
        New York, New York  10004
        Attention:  ABS Surveillance

        Via electronic delivery to servicerreports@moodys.com
        For any information not available in electronic format:
        Moody's Investors Service
        99 Church Street
        New York, New York  10007
        Attention:  ABS Monitoring Group

        The Trustee also acknowledges that each Rating Agency's periodic review
for maintenance of a Rating on any Class of Notes may involve discussions and/or
meetings with representatives of the Trustee at mutually agreeable times and
places.

        SECTION 7.19. MERGER OF THE TRUSTEE. Any corporation into which the
Trustee may be merged or with which it may be consolidated, or any corporation
resulting from any merger or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all of the
corporate trust business of the Trustee, shall be the successor of the Trustee
hereunder, provided such corporation shall be otherwise qualified and eligible
under this Indenture, without the execution or filing of any paper of any
further act on the part of any other parties hereto.

        SECTION 7.20. RECEIPT OF FUNDS FROM MASTER SERVICER OR A SUBSERVICER.
The Trustee shall not be accountable or responsible in any manner whatsoever for
any action of the Issuer, the Administrator, the depository bank of any funds of
the Issuer, or the Master Servicer or a Subservicer while such Master Servicer
or Subservicer is acting as bailee or agent of the Trustee with respect to the
Eligible Loans for actions taken in compliance with any instruction or direction
given to the Trustee, or for the application of funds or moneys by the Master
Servicer or a Subservicer until such time as funds are received by the Trustee.

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        SECTION 7.21. SPECIAL CIRCUMSTANCES LEADING TO RESIGNATION OF TRUSTEE.
Because the Trustee serves as trustee hereunder for Obligations of different
priorities, it is possible that circumstances may arise which will cause the
Trustee to resign from its position as trustee for one or more of the
Obligations. In the event that the Trustee makes a determination that it should
so resign, due to the occurrence of an Event of Default or potential default
hereunder, or otherwise, the Issuer may permit such resignation as to one or
more of the Obligations or request the Trustee's resignation as to all
Obligations, as the Issuer may elect. If the Issuer should determine that a
conflict of interest has arisen as to the trusteeship of any of the Obligations,
it may authorize and execute a Supplemental Indenture with one or more successor
Trustees, under which the administration of certain of the Obligations would be
separated from the administration of the other Obligations.

        SECTION 7.22. SURVIVAL OF TRUSTEE'S RIGHTS TO RECEIVE COMPENSATION,
REIMBURSEMENT AND INDEMNIFICATION. The Trustee's rights to receive compensation,
reimbursement and indemnification of money due and owing hereunder at the time
of the Trustee's resignation or removal shall survive the Trustee's resignation
or removal.

        SECTION 7.23. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY; CONFLICTING
INTERESTS. There shall at all times be a Trustee hereunder which shall be
eligible to act as Trustee under Section 310(a)(1) of the Trust Indenture Act
and shall have a combined capital and surplus of at least $50,000,000. If such
corporation publishes reports of condition at least annually, pursuant to law or
the requirements of federal, state, territorial or District of Columbia
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition
so published. If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in
the manner and with the effect hereinafter specified in this Article. Neither
the Issuer nor any Person directly or indirectly controlling or controlled by,
or under common control with, the Issuer shall serve as Trustee.

        SECTION 7.24. TRUSTEE MAY FILE PROOFS OF CLAIM. In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
the Issuer or any other obligor upon the Notes or the property of the Issuer or
of such other obligor or their creditors, the Trustee (irrespective of whether
the principal of the Notes of any Class shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the Trustee
shall have made any demand on the Issuer for the payment of overdue principal,
premium, if any, or interest) shall be entitled and empowered, by intervention
in such proceeding or otherwise:

                (a) to file and prove a claim for the whole amount, or such
        lesser amount as may be provided for in the Notes, of principal (and
        premium, if any) and interest, if any, 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 Trustee (including any
        claim for the reasonable fees, compensation, expenses, disbursements and
        advances of the Trustee and its agents and counsel) and of the
        Registered Owners allowed in such judicial proceeding; and

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                (b) to collect and receive any money or other property payable
        or deliverable on any such claims and to distribute the same; and any
        custodian, receiver, assignee, trustee, liquidator, sequestrator (or
        other similar official) in any such judicial proceeding is hereby
        authorized by each Registered Owner of Notes to make such payments to
        the Trustee, and if the Trustee shall consent to the making of such
        payments directly to the Registered Owners, to pay to the Trustee any
        amount due to it for the reasonable fees, compensation, expenses,
        disbursements and advances of the Trustee and any predecessor Trustee,
        their agents and counsel, and any other amounts due the Trustee or any
        predecessor Trustee.

        Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Registered Owner of
a Note any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Registered Owner thereof, or to
authorize the Trustee to vote in respect of the claim of any Registered Owner of
a Note in any such proceeding.

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

        SECTION 7.25. NO PETITION. The Trustee will not at any time institute
against the Issuer any bankruptcy proceeding under any United States federal or
State bankruptcy or similar law in connection with any obligations of the Issuer
under this Indenture.

                                  ARTICLE VIII

                             SUPPLEMENTAL INDENTURES

        SECTION 8.01. SUPPLEMENTAL INDENTURES NOT REQUIRING CONSENT OF
REGISTERED OWNERS. The Issuer and the Trustee may, without the consent of or
notice to any of the Registered Owners of any Obligations enter into any
indenture or indentures supplemental to this Indenture for any one or more of
the following purposes:

                (a) to cure any ambiguity or formal defect or omission in this
        Indenture;

                (b) to grant to or confer upon the Trustee for the benefit of
        the Registered Owners any additional benefits, rights, remedies, powers
        or authorities that may lawfully be granted to or conferred upon the
        Registered Owners or the Trustee;

                (c) to subject to this Indenture additional revenues, properties
        or collateral;

                (d) to modify, amend or supplement this Indenture or any
        indenture supplemental hereto in such manner as to permit the
        qualification hereof and thereof under the Trust Indenture Act of 1939
        or any similar federal statute hereafter in effect or to permit the
        qualification of the Notes for sale under the securities laws of the
        United States of America or of any of the states of the United States of
        America, and, if they so determine, to add to this Indenture or any
        indenture supplemental hereto such other terms, conditions and
        provisions as may be permitted by said Trust Indenture Act of 1939 or
        similar federal statute;

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                (e) to evidence the appointment of a separate or co-Trustee or a
        co-registrar or transfer agent or the succession of a new Trustee
        hereunder, or any additional or substitute Guaranty Agency, Master
        Servicer or Subservicer;

                (f) to add such provisions to or to amend such provisions of
        this Indenture as may be necessary or desirable to assure implementation
        of the Program in conformance with the Higher Education Act if along
        with such Supplemental Indenture there is filed an opinion of counsel to
        the effect that the addition or amendment of such provisions will in no
        way impair the existing security of the Registered Owners of any
        Outstanding Obligations;

                (g) to make any change as shall be necessary in order to obtain
        and maintain for any of the Notes an investment grade Rating from a
        nationally recognized rating service, which changes, in the opinion of
        the Trustee are not to the prejudice of the Registered Owner of any of
        the Obligations;

                (h) to make any changes necessary to comply with or obtain more
        favorable treatment under any current or future law, rule or regulation,
        including but not limited to the Higher Education Act, the Regulations
        or the Code and the regulations promulgated thereunder;

                (i) to make the terms and provisions of this Indenture,
        including the lien and security interest granted herein, applicable to a
        Derivative Product, and to modify this Indenture with respect to any
        particular Derivative Product;

                (j) to create any additional Funds or Accounts or Subaccounts
        under this Indenture deemed by the Trustee to be necessary or desirable;

                (k) to make any other change with a Rating Confirmation; or

                (l) to make any other change which, in the judgment of the
        Trustee is not to the material prejudice of the Registered Owners of any
        Obligations;

provided, however, that nothing in this Section shall permit, or be construed as
permitting, any modification of the trusts, powers, rights, duties, remedies,
immunities and privileges of the Trustee without the prior written approval of
the Trustee, which approval shall be evidenced by execution of a Supplemental
Indenture.

        SECTION 8.02. SUPPLEMENTAL INDENTURES REQUIRING CONSENT OF REGISTERED
OWNERS. Exclusive of Supplemental Indentures covered by Section 8.01 hereof and
subject to the terms and provisions contained in this Section, and not
otherwise, the Registered Owners of not less than a majority of the collective
aggregate principal amount of the Obligations then Outstanding shall have the
right, from time to time, to consent to and approve the execution by the Issuer
and the Trustee of such other indenture or indentures supplemental hereto as
shall be deemed necessary and desirable by the Trustee for the purpose of
modifying, altering, amending, adding to or rescinding, in any particular, any
of the terms or provisions contained in this Indenture or in any Supplemental

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Indenture; provided, however, that nothing in this Section shall permit, or be
construed as permitting (a) without the consent of the Registered Owners of all
then Outstanding Obligations, (i) an extension of the maturity date of the
principal of or the interest on any Obligation, or (ii) a reduction in the
principal amount of any Obligation or the rate of interest thereon, or (iii) a
privilege or priority of any Obligation or Obligations over any other Obligation
or Obligations except as otherwise provided herein, or (iv) a reduction in the
aggregate principal amount of the Obligations required for consent to such
Supplemental Indenture, or (v) the creation of any lien other than a lien
ratably securing all of the Obligations at any time Outstanding hereunder except
as otherwise provided herein; or (b) any modification of the trusts, powers,
rights, obligations, duties, remedies, immunities and privileges of the Trustee
without the prior written approval of the Trustee.

        If at any time the Issuer shall request the Trustee to enter into any
such Supplemental Indenture for any of the purposes of this Section, the Trustee
shall, upon being satisfactorily indemnified with respect to expenses, cause
notice of the proposed execution of such Supplemental Indenture to be mailed by
registered or certified mail to each Registered Owner of an Obligation at the
address shown on the registration books or listed in any Derivative Product.
Such notice (which shall be prepared by the Issuer) shall briefly set forth the
nature of the proposed Supplemental Indenture and shall state that copies
thereof are on file at the principal corporate trust office of the Trustee for
inspection by all Registered Owners. If, within 60 days, or such longer period
as shall be prescribed by the Issuer, following the mailing of such notice, the
Registered Owners of not less than a majority of the collective aggregate
principal amount of the Obligations Outstanding at the time of the execution of
any such Supplemental Indenture shall have consented in writing to and approved
the execution thereof as herein provided, no Registered Owner of any Obligation
shall have any right to object to any of the terms and provisions contained
therein, or the operation thereof, or in any manner to question the propriety of
the execution thereof, or to enjoin or restrain the Trustee or the Issuer from
executing the same or from taking any action pursuant to the provisions thereof.
Upon the execution of any such Supplemental Indenture as in this Section
permitted and provided, this Indenture shall be and be deemed to be modified and
amended in accordance therewith.

        SECTION 8.03. ADDITIONAL LIMITATION ON MODIFICATION OF INDENTURE. None
of the provisions of this Indenture (including Sections 8.01 and 8.02 hereof)
shall permit an amendment to the provisions of the Indenture which permits the
transfer of all or part of the Financed Eligible Loans originated under the
Higher Education Act or granting of a security interest therein to any Person
other than an Eligible Lender, the Master Servicer or a Subservicer, unless the
Higher Education Act or Regulations are hereafter modified so as to permit the
same. The Trustee may request an opinion of counsel to the effect that an
amendment or supplement to this Indenture was adopted in conformance with this
Indenture.

        SECTION 8.04. CONFORMITY WITH THE TRUST INDENTURE ACT. Every
supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

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                                   ARTICLE IX

                               GENERAL PROVISIONS

        SECTION 9.01. NOTICES. Any notice, request or other instrument required
by this Indenture to be signed or executed by the Registered Owners of
Obligations may be executed by the execution of any number of concurrent
instruments of similar tenor, and may be signed or executed by such Registered
Owners of Obligations in person or by agent appointed in writing. As a condition
for acting thereunder the Trustee may demand proof of the execution of any such
instrument and of the fact that any person claiming to be the owner of any of
said Obligations is such owner and may further require the actual deposit of
such Obligation or Obligations with the Trustee. The fact and date of the
execution of such instrument may be proved by the certificate of any officer in
any jurisdiction who by the laws thereof is authorized to take acknowledgments
of deeds within such jurisdiction, that the person signing such instrument
acknowledged before him the execution thereof, or may be proved by any affidavit
of a witness to such execution sworn to before such officer.

        The amount of Notes held by any person executing such instrument as a
Registered Owner of Notes and the fact, amount and numbers of the Notes held by
such person and the date of his holding the same may be proved by a certificate
executed by any responsible trust company, bank, banker or other depository in a
form approved by the Trustee, showing that at the date therein mentioned such
person had on deposit with such depository the Notes described in such
certificate; provided, however, that at all times the Trustee may require the
actual deposit of such Note or Notes with the Trustee.

        All notices, requests and other communications to any party hereunder
shall be in writing (including bank wire, telex, telecopy, electronic
communication, facsimile or similar writing) at the following addresses, and
each address shall constitute each party's respective "Principal Office" for
purposes of this Indenture:

        If intended for the Issuer:

               Nelnet Student Loan Trust 2007-1
               c/o M&T Trust Company of Delaware, Delaware Trustee
               1220 North Market Street, Suite 202
               Mail Code: MD1-WD22
               Wilmington, DE 19801
               Attention:  Rita Marie Ritrovato
               Telephone:  (302) 255-4966
               Facsimile:  (302) 661-2266
               Email:  rritrovato@mtb.com

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               With a copy to the Administrator:

               National Education Loan Network, Inc.
               121 South 13th Street, Suite 201
               Lincoln, NE  68505
               Attention:  Carol Aversman
               Telephone:  (402) 458-2305
               Facsimile:  (402) 458-2399

        If intended for the Trustee or the Eligible Lender Trustee:

               Zions First National Bank
               717 Seventeenth Street, Suite 301
               Denver, CO  80202
               Attention: Corporate Trust Department
               Telephone:  (720) 947-7475
               Facsimile:  (720) 947-7480

        Any party may change the address to which subsequent notices to such
party are to be sent, or of its Principal Office, by notice to the others,
delivered by hand or received by telex or facsimile or registered first-class
mail, postage prepaid. Each such notice, request or other communication shall be
effective when delivered by hand or received by facsimile or registered
first-class mail, postage prepaid.

        SECTION 9.02. COVENANTS BIND ISSUER. The covenants, agreements,
conditions, promises, and undertakings in this Indenture shall extend to and be
binding upon the successors and assigns of the Issuer, and all of the covenants
hereof shall bind such successors and assigns, and each of them, jointly and
severally. All the covenants, conditions and provisions hereof shall be held to
be for the sole and exclusive benefit of the parties hereto and their successors
and assigns and of the Registered Owners from time to time of the Obligations.

        No extension of time of payment of any of the Obligations shall operate
to release or discharge the Issuer, it being agreed that the liability of the
Issuer, to the extent permitted by law, shall continue until all of the
Obligations are paid in full, notwithstanding any transfer of Financed Eligible
Loans or extension of time for payment.

        SECTION 9.03. LIEN CREATED. This Indenture shall operate effectually as
(a) a grant of a lien on and security interest in, and (b) an assignment of, the
Trust Estate.

        SECTION 9.04. SEVERABILITY OF LIEN. If the lien of this Indenture shall
be or shall ever become ineffectual, invalid or unenforceable against any part
of the Trust Estate, which is not subject to the lien, because of want of power
or title in the Issuer, the inclusion of any such part shall not in any way
affect or invalidate the pledge and lien hereof against such part of the Trust
Estate as to which the Issuer in fact had the right to pledge.

        SECTION 9.05. CONSENT OF REGISTERED OWNERS BINDS SUCCESSORS. Any request
or consent of the Registered Owner of any Obligations given for any of the
purposes of this Indenture shall bind all future Registered Owners of the same
Obligation or any Obligations issued in exchange therefor or in substitution
thereof in respect of anything done or suffered by the Issuer or the Trustee in
pursuance of such request or consent.

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        SECTION 9.06. NONLIABILITY OF PERSONS; NO GENERAL OBLIGATION. It is
hereby expressly made a condition of this Indenture that any agreements,
covenants or representations herein contained or contained in the Notes do not
and shall never constitute or give rise to a personal or pecuniary liability or
charge against the organizers, officers, employees, agents or trustees or the
Administrator of the Issuer, or against the general credit of the Issuer, and in
the event of a breach of any such agreement, covenant or representation, no
personal or pecuniary liability or charge payable directly or indirectly from
the general revenues of the Issuer shall arise therefrom. Nothing contained in
this Section, however, shall relieve the Issuer from the observance and
performance of the several covenants and agreements on its part herein
contained.

        SECTION 9.07. NONPRESENTMENT OF NOTES OR INTEREST CHECKS. Should any of
the Notes or interest checks not be presented for payment when due, the Trustee
shall retain from any money transferred to it for the purpose of paying the
Notes or interest checks so due, for the benefit of the Registered Owners
thereof, a sum of money sufficient to pay such Notes or interest checks when the
same are presented by the Registered Owners thereof for payment. Such money
shall not be required to be invested. All liability of the Issuer to the
Registered Owners of such Notes or interest checks and all rights of such
Registered Owners against the Issuer under the Notes or interest checks or under
this Indenture shall thereupon cease and determine, and the sole right of such
Registered Owners shall thereafter be against such deposit. If any Note or
interest check shall not be presented for payment within the period of two years
following its payment or prepayment date, the Trustee shall return to the Issuer
the money theretofore held by it for payment of such Note or interest check, and
such Note or interest check shall (subject to the defense of any applicable
statute of limitation) thereafter be an unsecured obligation of the Issuer. The
Trustee's responsibility for any such money shall cease upon remittance thereof
to the Issuer.

        SECTION 9.08. SECURITY AGREEMENT. This Indenture constitutes a Financing
Statement and a Security Agreement under the Delaware Uniform Commercial Code
and the Utah Uniform Commercial Code.

        SECTION 9.09. LAWS GOVERNING. It is the intent of the parties hereto
that this Indenture shall in all respects be governed by the laws of the State
of New York. This Indenture is subject to the provisions of the Trust Indenture
Act that are required to be part of this Indenture and shall, to the extent
applicable, be governed by such provisions.

        SECTION 9.10. SEVERABILITY. If any covenant, agreement, waiver, or part
thereof in this Indenture contained be forbidden by any pertinent law or under
any pertinent law be effective to render this Indenture invalid or unenforceable
or to impair the lien hereof, then each such covenant, agreement, waiver, or
part thereof shall itself be and is hereby declared to be wholly ineffective,
and this Indenture shall be construed as if the same were not included herein.

        SECTION 9.11. EXHIBITS. The terms of the Schedules and Exhibits, if any,
attached to this Indenture are incorporated herein in all particulars.

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        SECTION 9.12. NON-BUSINESS DAYS. Except as may otherwise be provided
herein, if the date for making payment of any amount hereunder or on any Note,
or if the date for taking any action hereunder, is not a Business Day, then such
payment can be made without accruing further interest or action can be taken on
the next succeeding Business Day, with the same force and effect as if such
payment were made when due or action taken on such required date.

        SECTION 9.13. PARTIES INTERESTED HEREIN. Nothing in this Indenture
expressed or implied is intended or shall be construed to confer upon, or to
give to, any person or entity, other than the Trustee, the Delaware Trustee, the
paying agent, if any, and the Registered Owners of the Obligations, any right,
remedy or claim under or by reason of this Indenture or any covenant, condition
or stipulation hereof, and all covenants, stipulations, promises and agreements
in this Indenture contained by and on behalf of the Issuer shall be for the sole
and exclusive benefit of the Trustee, the paying agent, if any, and the
Registered Owners of the Obligations.

        SECTION 9.14. OBLIGATIONS ARE LIMITED OBLIGATIONS. The Notes and the
obligations of the Issuer contained in this Indenture are special, limited
obligations of the Issuer, secured by and payable solely from the Trust Estate
herein provided. The Issuer shall not be obligated to pay the Notes, the
interest thereon, or any other obligation created by or arising from this
Indenture from any other source.

        SECTION 9.15. LIMITATIONS ON COUNTERPARTY RIGHTS. No Counterparty which
shall be in default under any Derivative Product with the Issuer shall have any
of the rights granted to a Counterparty or as the Registered Owner of an
Obligation hereunder. A Counterparty which is in default under any Derivative
Product shall however, continue to maintain all obligations undertaken by it
under the terms of its Derivative Product. No Counterparty shall have any
consent or voting rights under this Indenture, or any rights to instruct the
Trustee to take, or refrain from taking, any action hereunder except upon
satisfaction of a Rating Confirmation.

        SECTION 9.16. DISCLOSURE OF NAMES AND ADDRESSES OF REGISTERED OWNERS.

                (a) Registered Owners may communicate pursuant to Section 312(b)
        of the Trust Indenture Act with other Registered Owners with respect to
        their rights under this Indenture or under the Notes. Upon receipt by
        the Trustee of any request by three or more Registered Owners or by one
        or more holders of Notes evidencing not less than 25% of the Outstanding
        Amount of the Notes to receive a copy of the current list of Registered
        Owners (whether or not made pursuant to Section 312(b) of the Trust
        Indenture Act), the Trustee shall promptly notify the Issuer thereof by
        providing to the Issuer a copy of such request and a copy of the list of
        Registered Owners produced in response thereto.

                (b) Registered Owners of Notes, by receiving and holding the
        same, agree with the Issuer and the Trustee that neither the Issuer nor
        the Trustee nor any Clearing Agency shall be held accountable by reason
        of the disclosure of any information as to the names and addresses of
        the Registered Owners of Notes in accordance with Section 312 of the
        Trust Indenture Act, regardless of the source from which such
        information was derived, and that the Trustee shall not be held
        accountable by reason of mailing any material pursuant to a request made
        under Section 312(b) of the Trust Indenture Act.

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        SECTION 9.17. AGGREGATE PRINCIPAL AMOUNT OF OBLIGATIONS. Whenever in
this Indenture reference is made to the aggregate principal amount of any
Obligations, such phrase shall mean, at any time, the principal amount of any
Notes and the Derivative Value of any Derivative Product.

        SECTION 9.18. FINANCED ELIGIBLE LOANS. The Issuer expects to acquire
Eligible Loans and to transfer Eligible Loans to the Trustee, in accordance with
this Indenture, which Eligible Loans, upon becoming subject to the lien of this
Indenture, constitute Financed Eligible Loans, as defined herein. If for any
reason a Financed Eligible Loan does not constitute an Eligible Loan, or ceases
to constitute an Eligible Loan, such loan shall continue to be subject to the
lien of this Indenture as a Financed Eligible Loan.

        SECTION 9.19. CONCERNING THE DELAWARE TRUSTEE. It is expressly
understood and agreed by the parties to this Indenture and the Registered Owners
that (a) this Indenture is executed and delivered by the Delaware Trustee not in
its individual or personal capacity but solely in its capacity as Delaware
Trustee under the Trust Agreement on behalf of the Issuer, in the exercise of
the powers and authority conferred and vested in it as Delaware Trustee under
the Trust Agreement, subject to the protections, indemnities and limitations
from liability afforded to the Delaware Trustee thereunder; (b) the
representations, warranties, covenants, undertakings, agreements and obligations
by the Delaware Trustee are made and intended not as personal representations,
warranties, covenants, undertakings, agreements and obligations by M&T Trust
Company of Delaware, but are made and intended for the purpose of only binding
the Trust Estate, as defined in the Trust Agreement, and the Issuer; (c) nothing
contained herein shall be construed as creating any liability on M&T Trust
Company of Delaware, individually or personally, to perform any expressed or
implied covenant, duty or obligation of any kind whatsoever contained herein;
and (d) under no circumstances shall M&T Trust Company of Delaware, be
personally liable for the payment of any fees, costs, indebtedness or expenses
of any kind whatsoever or be personally liable for the breach or failure of any
obligation, representation, agreement, warranty or covenant whatsoever made or
undertaken by the Delaware Trustee or Issuer hereunder.

                                   ARTICLE X

                        PAYMENT AND CANCELLATION OF NOTES
                          AND SATISFACTION OF INDENTURE

        SECTION 10.01. TRUST IRREVOCABLE. The trust created by the terms and
provisions of this Indenture is irrevocable until the indebtedness secured
hereby (the Notes and interest thereon) and all Issuer Derivative Payments are
fully paid or provision made for its payment as provided in this Article.

        SECTION 10.02. SATISFACTION OF INDENTURE.

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<PAGE>

                (a) If the Issuer shall pay, or cause to be paid, or there shall
        otherwise be paid (i) to the Registered Owners of the Notes, the
        principal of and interest on the Notes, at the times and in the manner
        stipulated in this Indenture; and (ii) to each Counterparty, all Issuer
        Derivative Payments then due, then the pledge of the Trust Estate, and
        all covenants, agreements and other obligations of the Issuer to the
        Registered Owners of Notes shall thereupon cease, terminate and become
        void and be discharged and satisfied. In such event, the Trustee shall
        execute and deliver to the Issuer all such instruments as may be
        desirable to evidence such discharge and satisfaction, and the Trustee
        shall pay over or deliver all money held by it under this Indenture to
        the party entitled to receive the same under this Indenture. If the
        Issuer shall pay or cause to be paid, or there shall otherwise be paid,
        to the Registered Owners of any Outstanding Notes the principal of and
        interest on such Notes and to each Counterparty all Counterparty
        Payments then due, at the times and in the manner stipulated in this
        Indenture and in the respective Derivative Product, such Notes and each
        Counterparty shall cease to be entitled to any lien, benefit or security
        under this Indenture, and all covenants, agreements and obligations of
        the Issuer to the Registered Owners thereof and each Counterparty shall
        thereupon cease, terminate and become void and be discharged and
        satisfied.

                (b) Notes or interest installments shall be deemed to have been
        paid within the meaning of Section 10.02(a) hereof if money for the
        payment thereof has been set aside and is being held in trust by the
        Trustee at the Note Final Maturity Date or earlier prepayment date
        thereof. Any Outstanding Note shall, prior to the Note Final Maturity
        Date or earlier prepayment thereof, be deemed to have been paid within
        the meaning and with the effect expressed in Section 10.02(a) hereof if
        (i) such Note is to be prepaid on any date prior to its Note Final
        Maturity Date and (ii) the Issuer shall have given notice of prepayment
        as provided herein on said date, there shall have been deposited with
        the Trustee either money (fully insured by the Federal Deposit Insurance
        Corporation or fully collateralized by Governmental Obligations) in an
        amount which shall be sufficient, or Governmental Obligations (including
        any Governmental Obligations issued or held in book-entry form on the
        books of the Department of Treasury of the United States of America) the
        principal of and the interest on which when due will provide money
        which, together with the money, if any, deposited with the Trustee at
        the same time, shall be sufficient, to pay when due the principal of and
        interest to become due on such Note on and prior to the prepayment date
        or Note Final Maturity Date thereof, as the case may be. Notwithstanding
        anything herein to the contrary, however, no such deposit shall have the
        effect specified in this subsection (b) if made during the existence of
        an Event of Default, unless made with respect to all of the Notes then
        Outstanding. Neither Governmental Obligations nor money deposited with
        the Trustee pursuant to this subsection (b) nor principal or interest
        payments on any such Governmental Obligations shall be withdrawn or used
        for any purpose other than, and shall be held irrevocably in trust in an
        escrow account for, the payment of the principal of and interest on such
        Notes. Any cash received from such principal of and interest on such
        Governmental Obligations deposited with the Trustee, if not needed for
        such purpose, shall, to the extent practicable, be reinvested in
        Governmental Obligations maturing at times and in amounts sufficient to
        pay when due the principal of and interest on such Notes on and prior to
        such prepayment date or Note Final Maturity Date thereof, as the case
        may be, and interest earned from such reinvestments shall be paid over
        to the Issuer, as received by the Trustee, free and clear of any trust,
        lien or pledge. Any payment for Governmental Obligations purchased for
        the purpose of reinvesting cash as aforesaid shall be made only against
        delivery of such Governmental Obligations. For the purposes of this

                                       83
<PAGE>

        Section, "Governmental Obligations" shall mean and include only
        non-callable direct obligations of the Department of the Treasury of the
        United States of America or portions thereof (including interest or
        principal portions thereof), and such Governmental Obligations shall be
        of such amounts, maturities and interest payment dates and bear such
        interest as will, without further investment or reinvestment of either
        the principal amount thereof or the interest earnings therefrom, be
        sufficient to make the payments required herein, and which obligations
        have been deposited in an escrow account which is irrevocably pledged as
        security for the Notes. Such term shall not include mutual funds and
        unit investment trusts.

                (c) Any Issuer Derivative Payments are deemed to have been paid
        and the applicable Derivative Product terminated when payment of all
        Issuer Derivative Payments due and payable to each Counterparty under
        its respective Derivative Product have been made or duly provided for to
        the satisfaction of each Counterparty and the respective Derivative
        Product has been terminated.

                (d) In no event shall the Trustee deliver over to the Issuer any
        Financed Eligible Loans originated under the Higher Education Act unless
        the Issuer is an Eligible Lender, if the Higher Education Act or
        Regulations then in effect require the owner or holder of such Financed
        Eligible Loans to be an Eligible Lender.

                (e) The provisions of this Section are applicable to the Notes
        and the Issuer Derivative Payments.

        SECTION 10.03. OPTIONAL PURCHASE OF ALL FINANCED ELIGIBLE LOANS. The
Administrator shall certify to and notify the Depositor, or any assignee of its
rights hereunder, and the Trustee in writing, within 15 days after the last
Business Day of each Collection Period in which the then outstanding Pool
Balance is 12% or less of the Initial Pool Balance, of the percentage that the
then outstanding Pool Balance bears to the Initial Pool Balance. The Depositor
or its assignee shall have the option to purchase all of the Financed Eligible
Loans on the earlier of (a) the August 2025 Quarterly Distribution Date and (b)
the date that is the tenth (10th) Business Day preceding the Quarterly
Distribution Date next succeeding the last day of the Collection Period on which
the then outstanding Pool Balance is 10% or less of the Initial Pool Balance
(each, an "Optional Purchase Date"). To exercise the option described in this
Section, the Depositor or its assignee shall deposit in the Collection Fund on
the Optional Purchase Date, an amount equal to the aggregate Purchase Amount for
the Financed Eligible Loans and the related rights with respect thereto, plus
the appraised value of any such other property held in the Trust Estate other
than the Funds and Accounts, such value to be determined by an appraiser
mutually agreed upon by the Depositor or its assignee and the Trustee; provided,
however, that the Depositor or its assignee may not effect such purchase if such
aggregate Purchase Amount and the appraised value of such other property do not
equal or exceed the Minimum Purchase Amount, less any amounts on deposit in the
Funds and Accounts.

        SECTION 10.04. AUCTION OF FINANCED ELIGIBLE LOANS. If the Depositor, or
any assignee of its rights under Section 10.03 hereof, does not exercise its
option to purchase Financed Eligible Loans pursuant to Section 10.03 hereof, the
Trustee (or its designated agent) shall, promptly after the Business Day next
succeeding the Optional Purchase Date, offer for sale Financed Eligible Loans in
an amount sufficient to redeem all Notes Outstanding on such Quarterly

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Distribution Date, and any such sale shall be consummated on or before such
Quarterly Distribution Date (the "Trust Auction Date"). Nelnet, Inc. or its
Affiliates and unrelated third parties may bid to purchase the Financed Eligible
Loans. The Trustee shall provide written notice to the Depositor of any such
offer for sale at least three Business Days in advance of the Trust Auction
Date. If at least two independent bids are received, the Trustee (or its
designated agent) shall solicit and resolicit new bids from all participating
bidders until only one bid remains or the remaining bidders decline to resubmit
bids. The Trustee shall accept the highest of the remaining bids if it is equal
to or in excess of both (i) the Minimum Purchase Amount, less any amounts on
deposit in the Funds and Accounts and (ii) the fair market value of such
Financed Eligible Loans as of the end of the Collection Period immediately
preceding the Trust Auction Date. If at least two bids are not received or the
highest bid after the resolicitation process is completed is not equal to or in
excess of the higher of the amounts described in the preceding sentences, the
Trustee shall not consummate such sale. The Trustee may consult, and, at the
direction of the Depositor, shall consult, with a financial advisor, including
an underwriter of the Notes or the Administrator, to determine if the fair
market value of the Financed Eligible Loans has been offered. The proceeds of
any such sale shall be deposited to the Collection Fund and applied to the
redemption of all Notes Outstanding in accordance with Section 5.04(e) hereof.
Unless requested by the Administrator, if the sale is not completed, the Trustee
may, but will not be obligated to, solicit bids for sale of the Financed
Eligible Loans with respect to future Quarterly Distribution Dates upon terms
similar to those described above. The Trustee shall be obligated to make such
solicitations, however, if requested to do so by the Administrator. Notice of
the prepayment of any Obligations resulting from a purchase of the Financed
Eligible Loans on the Optional Purchase Date or the auction of the Financed
Eligible Loans on the Trust Auction Date, shall be given by the Trustee to the
Registered Owners by first-class mail within five Business Days of such Optional
Purchase Date or Trust Auction Date.

        SECTION 10.05. CANCELLATION OF PAID NOTES. Any Notes which have been
paid or purchased by the Issuer, mutilated Notes replaced by new Notes, and any
temporary Note for which definitive Notes have been delivered shall (unless
otherwise directed by the Issuer by Issuer Order) forthwith be cancelled by the
Trustee and, except for temporary Notes, returned to the Issuer.

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<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this Indenture to be executed
in its organizational name and behalf by its Delaware Trustee, and the Trustee,
to evidence its acceptance of the trusts hereby created, has caused this
Indenture to be executed in its organizational name and behalf, all in multiple
counterparts, each of which shall be deemed an original, and the Issuer and the
Trustee have caused this Indenture to be dated as of the date herein above first
shown.

                                   NELNET STUDENT LOAN TRUST 2007-1,
                                   a Delaware statutory trust

                                   By: M&T TRUST COMPANY OF DELAWARE, not in its
                                       individual capacity or personal capacity
                                       but solely in its capacity as Delaware
                                       Trustee

                                   By     /s/ Robert D. Brown
                                      ------------------------------------------
                                   Name       Robert D. Brown
                                        ----------------------------------------
                                   Title      Vice President
                                         ---------------------------------------

                                   ZIONS FIRST NATIONAL BANK, as Trustee

                                   By  /s/ David W. Bata
                                      ------------------------------------------
                                           David W. Bata, Vice President

                                   Acknowledged and accepted as to
                                   clause "C" of the Granting
                                   Clauses as of the day and year
                                   first written above:

                                   ZIONS FIRST NATIONAL BANK, as Eligible Lender
                                   Trustee

                                   By  /s/ David W. Bata
                                      ------------------------------------------
                                           David W. Bata, Vice President

                                       86
<PAGE>

                                   APPENDIX A

                         CERTAIN TERMS AND PROVISIONS OF
                             THE AUCTION RATE NOTES

                                    ARTICLE I

                                   DEFINITIONS

        Except as provided below in this Section, all terms which are defined in
Article I of the Indenture shall have the same meanings, respectively, in this
Appendix A as such terms are given in Article I of the Indenture. In addition,
the following terms shall have the following respective meanings:

        "ALL HOLD RATE" means, on any date of determination, the interest rate
per annum equal to 90% of the Applicable LIBOR Rate, rounded to the nearest one
thousandth of one percent; provided that in no event shall the All Hold Rate be
more than the Interest Rate Limitation or less than zero.

        "APPLICABLE CP SPREAD," on any date of determination, means the
following percentages, based on the lowest rating assigned to the Auction Rate
Notes:

                                  CREDIT RATING

          S&P              MOODY'S             FITCH        APPLICABLE CP SPREAD
         "AAA"              "AAA"              "AAA"                 0.75%
     "AA-" TO "AA+"     "AA3" TO AA1"      "AA-" TO AA+"             0.75
      "A-" TO "A+"       "A3" TO "A1"       "A-" TO "A+"             0.75
    "BBB-" TO BBB+"    "BAA3" TO "BAA1"   "BBB-" TO "BBB+"           1.00
      BELOW "BBB-"       BELOW "BAA3"       BELOW "BBB-"             1.50

        "APPLICABLE LIBOR RATE" means, with respect to the Auction Rate Notes
(a) for Auction Periods of 28 days or less, One-Month LIBOR; (b) for Auction
Periods of more than 28 days but less than 91 days, Three-Month LIBOR; (c) for
Auction Periods of more than 90 days but less than 181 days, Six-Month LIBOR;
and (d) for Auction Periods of more than 180 days, One-Year LIBOR. As used in
this definition and otherwise herein, the terms "One-Month LIBOR," "Three-Month
LIBOR," "Six-Month LIBOR" or "One-Year LIBOR" mean the rate of interest per
annum equal to the rate per annum at which United States dollar deposits having
a maturity of one month, three months, six months or one year, respectively, are
offered to prime banks in the London interbank market which appear on the
Telerate Page 3750 as of approximately 11:00 a.m., London time, on the Interest
Rate Determination Date. If at least two such quotations appear, One-Month
LIBOR, Three-Month LIBOR, Six-Month LIBOR or One-Year LIBOR, respectively, will
be the arithmetic mean (rounded upwards, if necessary, to the nearest one
hundredth of one percent) of such offered rates. If fewer than two such quotes
appear, One-Month LIBOR, Three-Month LIBOR, Six-Month LIBOR or One-Year LIBOR,
respectively, with respect to such Auction Period will be determined at

                                      AA-1
<PAGE>

approximately 11:00 a.m., London time, on such Interest Rate Determination Date
on the basis of the rate at which deposits in United States dollars having a
maturity of one month, three months, six months or one year, respectively, are
offered to prime banks in the London interbank market by four major banks in the
London interbank market selected by the Auction Agent or the Trustee, as
applicable, and in a principal amount of not less than U.S. $1,000,000 and that
is representative for a single transaction in such market at such time. The
Auction Agent or the Trustee, as applicable, will request the principal London
office of each of such banks to provide a quotation of its rate. If at least two
quotations are provided, One-Month LIBOR, Three-Month LIBOR, Six-Month LIBOR or
One-Year LIBOR, respectively, will be the arithmetic mean (rounded upwards, if
necessary, to the nearest one hundredth of one percent) of such offered rates.
If fewer than two quotations are provided, One-Month LIBOR, Three-Month LIBOR,
Six-Month LIBOR or One-Year LIBOR, respectively, with respect to such Auction
Period will be the arithmetic mean (rounded upwards, if necessary, to the
nearest one hundredth of one percent) of the rates quoted at approximately 11:00
a.m., New York City time on such Interest Rate Determination Date by three major
banks in New York, New York selected by the Auction Agent or the Trustee, as
applicable, for loans in United States dollars to leading European banks having
a maturity of one month, three months, six months or one year, respectively, and
in a principal amount equal to an amount of not less than U.S. $1,000,000 and
that is representative for a single transaction in such market at such time;
provided, however, that if the banks selected as aforesaid are not quoting as
mentioned in this sentence, One-Month LIBOR, Three-Month LIBOR, Six-Month LIBOR
or One-Year LIBOR, respectively, in effect for the applicable Auction Period
will be One-Month LIBOR, Three-Month LIBOR, Six-Month LIBOR or One-Year LIBOR,
respectively, in effect for the immediately preceding Auction Period.

        "APPLICABLE T-BILL SPREAD" means, on any date of determination, the
following percentages, based on the lowest rating assigned to the Auction Rate
Notes as of such date:

                                  CREDIT RATING

                        MOODY'S INVESTORS                      APPLICABLE T-BILL
   STANDARD & POOR'S         SERVICE            FITCH, INC.          SPREAD
         "AAA"                "AAA"                "AAA"               1.25%
     "AA " TO "AA+"       "AA3" TO "AA1"       "AA" TO "AA+"           1.25
      "A" TO "A+"          "A3" TO "A1"         "A" TO "A+"            1.25
    "BBB" TO "BBB+"      "BAA3" TO "BAA1"     "BBB" TO "BBB+"          1.50
      BELOW "BBB"          BELOW "BAA3"         BELOW "BBB"            2.00

        "AUCTION" means the implementation of the Auction Procedures on an
Auction Date.

        "AUCTION AGENT" means the Initial Auction Agent under the Initial
Auction Agent Agreement unless and until a Substitute Auction Agent Agreement
becomes effective, after which "Auction Agent" shall mean the Substitute Auction
Agent.

                                      AA-2
<PAGE>

        "AUCTION AGENT AGREEMENT" means the Initial Auction Agent Agreement
unless and until a Substitute Auction Agent Agreement is entered into, after
which "Auction Agent Agreement" shall mean such Substitute Auction Agent
Agreement.

        "AUCTION AGENT FEE" has the meaning set forth in the Auction Agent
Agreement.

        "AUCTION DATE" means, initially, June 18, 2007; and thereafter, the
Business Day immediately preceding the first day of each Auction Period, other
than:

               (a) each Auction Period commencing after the ownership of the
        applicable Auction Rate Notes is no longer maintained in Book-Entry Form
        by the Clearing Agency;

               (b) each Auction Period commencing after and during the
        continuance of a Payment Default; or

               (c) each Auction Period commencing less than two Business Days
        after the cure or waiver of a Payment Default.

        Notwithstanding the foregoing, the Auction Date for one or more Auction
Periods may be changed pursuant to Section 2.02(h) of this Appendix A.

        "AUCTION NOTE INTEREST RATE" means each variable rate of interest per
annum borne by an Auction Rate Note for each Auction Period and determined in
accordance with the provisions of Sections 2.01 and 2.02 of this Appendix A.

        "AUCTION PERIOD" means the Interest Accrual Period applicable to the
Auction Rate Notes during which time the interest rate is determined pursuant to
Section 2.02(a) of this Appendix A, which Auction Period (after the Initial
Period) initially shall consist generally of 7 or 28 days, as the same may be
adjusted pursuant to Sections 2.01 and 2.02(g) of this Appendix A.

        "AUCTION PERIOD ADJUSTMENT" means an adjustment to the Auction Period as
provided in Section 2.02(g) of this Appendix A.

        "AUCTION PROCEDURES" means the procedures set forth in Section 2.02(a)
of this Appendix A by which the Auction Rate is determined.

        "AUCTION RATE" means the rate of interest per annum that results from
implementation of the Auction Procedures and is determined as described in
Section 2.02(a)(iii)(B) of this Appendix A.

        "AUCTION RATE DISTRIBUTION DATE" means, for each Auction Rate Note, the
Business Day immediately following the expiration of the Initial Period for such
Auction Rate Note and each related Auction Period thereafter; provided, however,
if the duration of such Auction Period exceeds 90 days, then such Auction Rate
Note shall have interest payment dates on (a) each Quarterly Distribution Date
occurring during such Auction Period, and (b) the first Business Day immediately
following the end of such Auction Period.

                                      AA-3
<PAGE>

        "AUCTION RATE NOTES" means the Class B-2 Notes.

        "AUTHORIZED DENOMINATIONS" means $25,000 and any integral multiple
thereof.

        "AVAILABLE AUCTION RATE NOTES" has the meaning set forth in Section
2.02(a)(iii)(A)(1) of this Appendix A.

        "BID" has the meaning set forth in Section 2.02(a)(i)(A) of this
Appendix A.

        "BID AUCTION RATE" has the meaning set forth in Section 2.02(a)(iii)(A)
of this Appendix A.

        "BIDDER" has the meaning set forth in Section 2.02(a)(i)(A) of this
Appendix A.

        "BOND EQUIVALENT YIELD" means with respect to any security with a
maturity of six months or less the rate for which is quoted in THE WALL STREET
JOURNAL on a bank discount basis, a yield (expressed as a percentage) calculated
in accordance with the following formula and rounded up to the nearest
one-hundredth of one percent:

                      Bond Equivalent Yield =         Q x N     x 100
                                                 -------------
                                                 360 - (T x Q)

where "Q" refers to the per annum interest rate for the security quoted on a
bank discount basis and expressed as a decimal, "N" refers to 365 or 366 (days),
as the case may be, and "T" refers to the number of days to maturity.

        "BOOK-ENTRY FORM" or "BOOK-ENTRY SYSTEM" means a form or system under
which (a) the beneficial right to principal and interest may be transferred only
through a book entry, (b) physical securities in registered form are issued only
to a Clearing Agency or its nominee as registered owner, with the securities
"immobilized" to the custody of the Clearing Agency, and (c) the book entry is
the record that identifies the owners of beneficial interests in that principal
and interest.

        "BROKER-DEALER" means, with respect to the Auction Rate Notes, Deutsche
Bank Securities Inc., J.P. Morgan Securities Inc., SunTrust Capital Markets Inc.
and Nelnet Capital, LLC, or any other broker or dealer (each as defined in the
Securities Exchange Act of 1934, as amended), commercial bank or other entity
permitted by law to perform the functions required of a Broker-Dealer set forth
in the Auction Procedures that (a) is a Participant (or an affiliate of a
Participant), (b) has been appointed as such by the Issuer pursuant to Section
2.02(f) of this Appendix A, and (c) has entered into a Broker-Dealer Agreement
that is in effect on the date of reference.

        "BROKER-DEALER AGREEMENT" means, collectively or individually as the
context may require, each agreement between the Auction Agent and a
Broker-Dealer, pursuant to which the Broker-Dealer agrees to participate in
Auctions as set forth in the Auction Procedures, as from time to time amended or
supplemented. Each Broker-Dealer Agreement shall be in substantially the form of
the Broker-Dealer Agreements, each dated as of May 1, 2007, among the Issuer,
the Initial Auction Agent and the respective Broker-Dealers.

                                      AA-4
<PAGE>

        "BROKER-DEALER FEE" has the meaning set forth in the Auction Agent
Agreement.

        "BROKER-DEALER FEE RATE" has the meaning set forth in the Auction Agent
Agreement.

        "BUSINESS DAY" means any day other than a Saturday, Sunday, holiday or
other day on which the New York Stock Exchange or banks located in New York, New
York, or in the city in which the principal office of the Trustee or the Auction
Agent is located, are authorized or permitted by law or executive order to
close; provided that with respect to Auction Dates such term shall exclude April
14 and 15 and December 30 and 31 and such other dates as may be agreed to in
writing by the Auction Agent, the Broker-Dealers and the Issuer.

        "CARRY-OVER AMOUNT" means the excess, if any, of (a) the amount of
interest on an Auction Rate Note that would have accrued with respect to the
related Interest Accrual Period at the least of the applicable Auction Rate and
the components included in the Maximum Rate (other than the Net Loan Rate) over
(b) the amount of interest on such Auction Rate Note actually accrued with
respect to such Auction Rate Note with respect to such Interest Accrual Period
based on the Net Loan Rate, together with the unreduced portion of any such
excess from prior Interest Accrual Periods; provided that any reference to
"principal" or "interest" in the Indenture and in this Appendix A and the
Auction Rate Notes shall not include within the meanings of such words any
Carry-Over Amount or any interest accrued on any Carry-Over Amount.

        "CP CAP" means, for any Auction Date, the rate (for the then current
Auction) at which the Quarterly Average Auction Rate equals the Quarterly
Average CP Rate plus the Applicable CP Spread, such rate to be determined by the
formula:

                                N x (C + S) - R,

Where N is the number of Auction Dates which precede the current Auction Date by
91 days or less, including the current Auction Date; C is the Quarterly Average
CP Rate; S is the Applicable CP Spread; and, R is the sum of the Auction Rates
for Auction Dates preceding the current Auction Date by 91 days or less,
excluding the current Auction.

        "EFFECTIVE INTEREST RATE" means, with respect to any Financed Eligible
Loan, the interest rate per annum payable by the borrower as of the last day of
the calendar quarter borne by such Financed Eligible Loan after giving effect to
any reduction in such interest rate pursuant to borrower incentives, (a) less
all accrued rebate fees on such Financed Eligible Loan constituting
consolidation loans paid during such calendar quarter expressed as a percentage
per annum and (b) plus all accrued Interest Benefit Payments and Special
Allowance Payments applicable to such Financed Eligible Loan during such
calendar quarter expressed as a percentage per annum.

        "ELIGIBLE CARRY-OVER MAKE-UP AMOUNT" means, with respect to each
Interest Accrual Period relating to the Auction Rate Notes as to which, as of
the first day of such Interest Accrual Period, there is any unpaid Carry-Over
Amount, an amount equal to the lesser of (a) interest computed on the principal
balance of the Auction Rate Notes in respect to such Interest Accrual Period at
a per annum rate equal to the excess, if any, of the Net Loan Rate over the
Auction Rate; and (b) the aggregate Carry-Over Amount remaining unpaid as of the
first day of such Interest Accrual Period together with interest accrued and
unpaid thereon through the end of such Interest Accrual Period.

                                      AA-5
<PAGE>

        "EXISTING OWNER" means (a) with respect to and for the purpose of
dealing with the Auction Agent in connection with an Auction, a Person who is a
Broker-Dealer listed in the Existing Owner Registry at the close of business on
the Business Day immediately preceding the Auction Date for such Auction; and
(b) with respect to and for the purpose of dealing with the Broker-Dealer in
connection with an Auction, a Person who is a beneficial owner of Auction Rate
Notes.

        "EXISTING OWNER REGISTRY" means the registry of Persons who are owners
of the Auction Rate Notes, maintained by the Auction Agent as provided in the
Auction Agent Agreement.

        "HOLD ORDER" has the meaning set forth in Section 2.02(a)(i)(A) of this
Appendix A.

        "INITIAL AUCTION AGENT" means Deutsche Bank Trust Company Americas, its
successors and assigns.

        "INITIAL AUCTION AGENT AGREEMENT" means, collectively, the Auction Agent
Agreement dated as of May 1, 2007, by and among the Issuer, the Trustee and the
Initial Auction Agent, including any amendment thereof or supplement thereto.

        "INITIAL PERIOD" means, as to Auction Rate Notes, the period commencing
on the Date of Issuance and continuing through the day immediately preceding the
Initial Rate Adjustment Date for such Auction Rate Notes.

        "INITIAL RATE" means for the Auction Rate Notes, 5.35%.

        "INITIAL RATE ADJUSTMENT DATE" means, for the Auction Rate Notes, June
19, 2007 (or if such date is not a Business Day, the following Business Day).

        "INTEREST ACCRUAL PERIOD" means, with respect to the Auction Rate Notes,
the Initial Period and each period commencing on an Auction Rate Distribution
Date and ending on the day before (a) the next Auction Rate Distribution Date or
(b) its Stated Maturity, as applicable.

        "INTEREST RATE ADJUSTMENT DATE" means the date on which an Auction Note
Interest Rate is effective, and means, with respect to the Auction Rate Notes,
the date of commencement of each Auction Period.

        "INTEREST RATE DETERMINATION DATE" means, with respect to the Auction
Rate Notes, the Auction Date, or if no Auction Date is applicable, the Business
Day immediately preceding the date of commencement of an Auction Period.

        "INTEREST RATE LIMITATION" means, on any date of determination, the
lesser of (a) the highest rate the Issuer may legally pay from time to time or
(b) 17%.

                                      AA-6
<PAGE>

        "MAXIMUM RATE" on any date of determination means the lesser of:

               (a) the Applicable LIBOR Rate plus 1.00%;

               (b) the Interest Rate Limitation;

               (c) for Auctions after the initial Auction Date, the T-Bill Cap;

               (d) for Auctions after the initial Auction Date, the CP Cap; or

               (e) the Net Loan Rate.

        "90-DAY FINANCIAL COMMERCIAL PAPER" means the 90-Day AA Financial
Commercial Paper rate posted on the Federal Reserve Release entitled "Commercial
Paper Rates and Outstandings," which rate may be available on the Internet at
www.federalreserve.gov/releases/cp.

        "NET LOAN RATE" means, with respect to any Interest Accrual Period
applicable to the Auction Rate Notes, the weighted average return on the
Financed Eligible Loans, including all revenues derived from such Financed
Eligible Loans, less all program expenses expressed as a percentage of the
average outstanding principal balance of such Financed Eligible Loans, which
percentage shall be calculated by the Issuer on a quarterly basis, in arrears
and provided to the Trustee and the Auction Agent. In making the determination
of the Net Loan Rate, the Issuer shall take into account any Counterparty
Payments received and/or any Issuer Derivative Payments made.

        "NON-PAYMENT RATE" means the lesser of (a) One-Month LIBOR plus 1.50%
and (b) the Interest Rate Limitation.

        "ORDER" has the meaning set forth in Section 2.02(a)(i)(A) of this
Appendix A.

        "PAYMENT DEFAULT" means, with respect to the Auction Rate Notes, (a) a
default in the due and punctual payment of any installment of interest on such
Auction Rate Notes, or (b) a default in the due and punctual payment of any
interest on and principal of such Auction Rate Notes at their maturity.

        "POTENTIAL OWNER" means any Person (including an Existing Owner that is
(a) a Broker-Dealer when dealing with the Auction Agent and (b) a potential
beneficial owner when dealing with a Broker-Dealer) who may be interested in
acquiring Auction Rate Notes (or, in the case of an Existing Owner thereof, an
additional principal amount of Auction Rate Notes).

        "QUARTERLY AVERAGE AUCTION RATE" means the simple average of the Auction
Rates for Auction Dates preceding the current Auction Date by 91 days or less,
including the current Auction Date.

        "QUARTERLY AVERAGE CP RATE" means the simple average of the Bond
Equivalent Yield of 90-Day Financial Commercial Paper Rates for the 91 days
preceding (but not including) the current Auction Date.

                                      AA-7
<PAGE>

        "QUARTERLY AVERAGE T-BILL RATE" means the simple average of the Bond
Equivalent Yield of 91-day Treasury bills auctioned in the 91 days preceding
(but not including) the current Auction Date.

        "REGULAR RECORD DATE" means the Business Day next preceding the
applicable Auction Date.

        "SELL ORDER" has the meaning set forth in Section 2.02(a)(i)(A) of this
Appendix A.

        "SUBMISSION DEADLINE" means 1:00 p.m., New York City time, on any
Auction Date or such other time on any Auction Date by which Broker-Dealers are
required to submit Orders to the Auction Agent as specified by the Auction Agent
from time to time.

        "SUBMITTED BID" has the meaning set forth in Section 2.02(a)(iii)(A) of
this Appendix A.

        "SUBMITTED HOLD ORDER" has the meaning set forth in Section
2.02(a)(iii)(A) of this Appendix A.

        "SUBMITTED ORDER" has the meaning set forth in Section 2.02(a)(iii)(A)
of this Appendix A.

        "SUBMITTED SELL ORDER" has the meaning set forth in Section
2.02(a)(iii)(A) of this Appendix A.

        "SUBSTITUTE AUCTION AGENT" means the Person with whom the Issuer and the
Trustee enter into a Substitute Auction Agent Agreement.

        "SUBSTITUTE AUCTION AGENT AGREEMENT" means an auction agent agreement
containing terms substantially similar to the terms of the Initial Auction Agent
Agreement, whereby a Person having the qualifications required by Section
2.02(e) of this Appendix A agrees with the Trustee and the Issuer to perform the
duties of the Auction Agent under this Appendix A.

        "SUFFICIENT BIDS" has the meaning set forth in Section 2.02(a)(iii)(A)
of this Appendix A.

        "T-BILL CAP" means, for any Auction Date, the rate (for the then current
auction) at which the Quarterly Average Auction Rate equals the Quarterly
Average T-Bill Rate plus the Applicable T-Bill Spread, such rate to be
determined by the formula:

                                 N x (T+S) - R,

where N is the number of Auction Dates which precede the current Auction Date by
91 days or less, including the current Auction Date; T is the Quarterly Average
T-Bill Rate; S is the Applicable T-Bill Spread; and R is the sum of the Auction
Rates for Auction Dates preceding the current Auction Date by 91 days or less,
excluding the current Auction.

                                      AA-8
<PAGE>

                                   ARTICLE II

                               TERMS AND ISSUANCE

        SECTION 2.01. AUCTION RATE AND CARRY-OVER AMOUNTS. During the Initial
Period, the Auction Rate Notes shall bear interest at the Initial Rate.
Thereafter, and except with respect to an Auction Period Adjustment, the Auction
Rate Notes shall bear interest at an Auction Note Interest Rate based on a
28-day Auction Period, as determined pursuant to this Section 2.01 and Section
2.02 of this Appendix A.

        For the Auction Rate Notes during the Initial Period and each Auction
Period thereafter, interest at the applicable Auction Rate Notes Interest Rate
shall accrue daily and shall be computed for the actual number of days elapsed
on the basis of a year consisting of 360 days.

        The Auction Note Interest Rate to be borne by the Auction Rate Notes
after such Initial Period for each Auction Period until an Auction Period
Adjustment, if any, shall be determined as described below. Each such Auction
Period after the Initial Period shall commence on and include the day following
the expiration of the immediately preceding Auction Period and terminate on and
include the Wednesday (unless such day is not followed by a Business Day, in
which case on the next succeeding day that is followed by a Business Day) of the
following fourth week; provided, however, that in the case of the Auction Period
that immediately follows the Initial Period, such Auction Period shall commence
on the Initial Rate Adjustment Date. The Auction Note Interest Rate of the
Auction Rate Notes for each Auction Period shall be the Auction Rate in effect
for such Auction Period as determined in accordance with Section 2.02(a) of this
Appendix A. By way of example, if an Interest Period ordinarily would end on a
Friday, but the following Monday is not a Business Day, the Interest Period will
end on that Monday and the new Interest Period will begin on Tuesday.

        Notwithstanding the foregoing, unless otherwise specified in an Issuer
Order, if an Auction is scheduled to occur for the next Auction Period on a date
that was reasonably expected to be a Business Day, but such Auction does not
occur because such date is later not considered to be a Business Day, the
Auction shall nevertheless be deemed to have occurred, and the applicable
Auction Note Interest Rate in effect for the next Auction Period will be the
Auction Note Interest Rate in effect for the preceding Auction Period and such
Auction Period will generally be 28 days in duration and ending on (and
including) the applicable Wednesday (unless such day is not followed by a
Business Day, in which case on the next succeeding day that is followed by a
Business Day), of the following fourth week in the case of the Auction Rate
Notes. If the preceding Auction Period was other than generally 28 days in
duration, the Auction Note Interest Rate for the deemed Auction will instead be
the rate of interest determined by the applicable Broker-Dealer on equivalently
rated auction securities with a comparable length of auction period.

        Notwithstanding the foregoing:

               (a) if the ownership of an Auction Rate Note is no longer
        maintained in Book-Entry Form, the Auction Note Interest Rate on the
        Auction Rate Notes for any Interest Accrual Period commencing after the
        delivery of certificates representing Auction Rate Notes pursuant to
        this Indenture shall equal the Maximum Rate on the Business Day
        immediately preceding the first day of such subsequent Interest Accrual
        Period; or

                                      AA-9
<PAGE>

               (b) if a Payment Default shall have occurred, the Auction Note
        Interest Rate on the Auction Rate Notes for the Interest Accrual Period
        commencing on or immediately after such Payment Default, and for each
        Interest Accrual Period thereafter, to and including the Interest
        Accrual Period, if any, during which, or commencing less than two
        Business Days after, such Payment Default is cured, shall equal the
        applicable Non-Payment Rate on the first day of each such Interest
        Accrual Period.

        In accordance with Section 2.02(a)(iii)(B) and (C) of this Appendix A,
the Auction Agent shall promptly give written notice to the Trustee and the
Issuer of each Auction Note Interest Rate (unless the Auction Note Interest Rate
is the applicable Non-Payment Rate) and the Maximum Rate when such rate is not
the Auction Note Interest Rate applicable to the Auction Rate Notes. The Trustee
shall notify the Registered Owners and the Issuer of Auction Rate Notes of the
applicable Auction Note Interest Rate applicable to such Auction Rate Notes for
each Auction Period not later than the third Business Day of such Auction
Period. Notwithstanding any other provision of the Auction Rate Notes or this
Indenture and except for the occurrence of a Payment Default, interest payable
on the Auction Rate Notes for an Auction Period shall never exceed for such
Auction Period the amount of interest payable at the applicable Maximum Rate in
effect for such Auction Period.

        If the Auction Rate for the Auction Rate Notes is greater than the
Maximum Rate, then the Auction Note Interest Rate applicable to such Auction
Rate Notes for that Interest Accrual Period will be the Maximum Rate. If the
Auction Note Interest Rate applicable to such Auction Rate Notes for any
Interest Accrual Period is the Maximum Rate, the Trustee shall determine the
Carry-Over Amount, if any, with respect to such Auction Rate Notes for such
Interest Accrual Period. Such Carry-Over Amount shall bear interest calculated
at a rate equal to One-Month LIBOR (as determined by the Auction Agent, provided
the Trustee has received notice of One-Month LIBOR from the Auction Agent, and
if the Trustee shall not have received such notice from the Auction Agent, then
as determined by the Trustee) from the Auction Rate Distribution Date for the
Interest Accrual Period with respect to which such Carry-Over Amount was
calculated, until paid. Any payment in respect of Carry-Over Amount shall be
applied, first, to any accrued interest payable thereon and, second, in
reduction of such Carry-Over Amount. For purposes of this Indenture and this
Appendix A, any reference to "principal" or "interest" herein shall not include
within the meaning of such words Carry-Over Amount or any interest accrued on
any such Carry-Over Amount. Such Carry-Over Amount shall be separately
calculated for each Auction Rate Note by the Trustee during such Interest
Accrual Period in sufficient time for the Trustee to give notice to each
Registered Owner of such Carry-Over Amount as required in the next succeeding
sentence. Not less than four days before the Auction Rate Distribution Date for
an Interest Accrual Period with respect to which such Carry-Over Amount has been
calculated by the Trustee, the Trustee shall give written notice to each
Registered Owner, the Auction Agent and the Issuer of the Carry-Over Amount
applicable to each Registered Owner's Auction Rate Note, which written notice
may accompany the payment of interest by check made to each such Registered
Owner on such Auction Rate Distribution Date or otherwise shall be mailed on
such Auction Rate Distribution Date by first-class mail, postage prepaid, to

                                      AA-10
<PAGE>

each such Registered Owner at such Registered Owner's address as it appears on
the registration records maintained by the Registrar. In addition to such
Carry-Over Amount, such notice shall state, that, unless and until an Auction
Rate Note has been redeemed (other than by optional redemption), after which
redemption all accrued Carry-Over Amounts (and all accrued interest thereon)
that remain unpaid shall be cancelled and no Carry-Over Amount (and interest
accrued thereon) shall be paid with respect to any redeemed Auction Rate Note,
(a) the Carry-Over Amount (and interest accrued thereon calculated at a rate
equal to One-Month LIBOR) shall be paid by the Trustee on an Auction Rate Note
on the earliest of (i) the date of defeasance of the Auction Rate Notes, or (ii)
the first occurring Auction Rate Distribution Date (or on the date of any
optional redemption) if and to the extent that (x) the Eligible Carry-Over
Make-Up Amount with respect to such subsequent Interest Accrual Period is
greater than zero, and (y) moneys are available pursuant to the terms of the
Indenture in an amount sufficient to pay all or a portion of such Carry-Over
Amount (and interest accrued thereon); and (b) interest shall accrue on the
Carry-Over Amount at a rate equal to One-Month LIBOR until such Carry-Over
Amount is paid in full or is cancelled. The Auction Agent shall maintain records
of the Carry-over Amounts, if any, for the Auction Rate Notes for each related
Auction Period.

        The Carry-Over Amount (and interest accrued thereon) for Auction Rate
Notes shall be paid by the Trustee on Outstanding Auction Rate Notes on the
earliest of (a) the date of defeasance of any of the Auction Rate Notes or (b)
the first occurring Auction Rate Distribution Date if and to the extent that (i)
the Eligible Carry-Over Make-Up Amount with respect to such Interest Accrual
Period is greater than zero, and (ii) on such Auction Rate Distribution Date
there are sufficient moneys in the Collection Fund to pay the Eligible
Carry-Over Make-Up Amount on such Auction Rate Distribution Date pursuant to
Section 5.04(d) of the Indenture. Any Carry-Over Amount (and any interest
accrued thereon) on any Auction Rate Note which is due and payable on an Auction
Rate Distribution Date, which Auction Rate Note is to be redeemed (other than by
optional redemption) on said Auction Rate Distribution Date, shall be paid to
the Registered Owner thereof on said Auction Rate Distribution Date to the
extent that moneys are available therefor in accordance with the provisions of
this Appendix A; provided, however, that any Carry-Over Amount (and any interest
accrued thereon) which is not yet due and payable on said Auction Rate
Distribution Date shall be cancelled with respect to said Auction Rate Note that
is to be redeemed (other than by optional redemption) on said Auction Rate
Distribution Date and shall not be paid on any succeeding Auction Rate
Distribution Date. To the extent that any portion of the Carry-Over Amount (and
any interest accrued thereon) remains unpaid after payment of a portion thereof,
such unpaid portion shall be paid in whole or in part as required hereunder
until fully paid by the Trustee on the earliest of (a) the date of defeasance of
any of the Auction Rate Notes or (b) the next occurring Auction Rate
Distribution Date or Dates, as necessary, if and to the extent that the
conditions in the second preceding sentence are satisfied. On any Auction Rate
Distribution Date on which the Trustee pays only a portion of the Carry-Over
Amount (and any interest accrued thereon) on Auction Rate Notes, the Trustee
shall give written notice in the manner set forth in the immediately preceding
paragraph to the Registered Owner of such Auction Rate Note receiving such
partial payment of the Carry-Over Amount remaining unpaid on such Auction Rate
Note.

                                      AA-11
<PAGE>

        The Auction Rate Distribution Date or other date on which such
Carry-Over Amount (or any interest accrued thereon) for Auction Rate Notes shall
be paid shall be determined by the Trustee in accordance with the provisions of
the immediately preceding paragraph, and the Trustee shall make payment of the
Carry-Over Amount (and any interest accrued thereon) in the same manner as, and
from the same Fund from which, it pays interest on the Auction Rate Notes on an
Auction Rate Distribution Date. Any payment of Carry-Over Amounts (and interest
accrued thereon) shall reduce the amount of Eligible Carry-Over Make-Up Amount.

        In the event that the Auction Agent no longer determines, or fails to
determine, when required, the Auction Note Interest Rate with respect to Auction
Rate Notes, or, if for any reason such manner of determination shall be held to
be invalid or unenforceable, the Auction Note Interest Rate for the next
succeeding Interest Accrual Period, which Interest Accrual Period shall be an
Auction Period, for Auction Rate Notes shall be the Maximum Rate as determined
by the Auction Agent for such next succeeding Auction Period, and if the Auction
Agent shall fail or refuse to determine the Maximum Rate, the Maximum Rate shall
be determined by the securities dealer appointed by the Issuer capable of making
such a determination in accordance with the provisions of this Appendix A and
written notice of such determination shall be given by such securities dealer to
the Trustee.

        SECTION 2.02. AUCTION RATE.

               (a) DETERMINING THE AUCTION RATE. By purchasing Auction Rate
        Notes, whether in an Auction or otherwise, each purchaser of the Auction
        Rate Notes, or its Broker-Dealer, must agree and shall be deemed by such
        purchase to have agreed (x) to participate in Auctions on the terms
        described herein, (y) to have its beneficial ownership of the Auction
        Rate Notes maintained at all times in Book-Entry Form for the account of
        its Participant, which in turn will maintain records of such beneficial
        ownership and (z) to authorize such Participant to disclose to the
        Auction Agent such information with respect to such beneficial ownership
        as the Auction Agent may request.

               So long as the ownership of Auction Rate Notes is maintained in
        Book-Entry Form by the Clearing Agency, an Existing Owner may sell,
        transfer or otherwise dispose of Auction Rate Notes only pursuant to a
        Bid or Sell Order placed in an Auction or otherwise sell, transfer or
        dispose of Auction Rate Notes through a Broker-Dealer, provided that, in
        the case of all transfers other than pursuant to Auctions, such Existing
        Owner, its Broker-Dealer or its Participant advises the Auction Agent of
        such transfer. Auctions shall be conducted on each Auction Date, if
        there is an Auction Agent on such Auction Date, in the following manner:

                      (i) (A) Prior to the Submission Deadline on each Auction
                              Date;

                                    (1) each Existing Owner of Auction Rate
                             Notes may submit to a Broker-Dealer by telephone or
                             otherwise any information as to:

                                            a. the principal amount of
                                    Outstanding Auction Rate Notes, if any,
                                    owned by such Existing Owner which such
                                    Existing Owner desires to continue to own
                                    without regard to the Auction Note Interest
                                    Rate for the next succeeding Auction Period;

                                      AA-12
<PAGE>

                                            b. the principal amount of
                                    Outstanding Auction Rate Notes, if any,
                                    which such Existing Owner offers to sell if
                                    the Auction Note Interest Rate for the next
                                    succeeding Auction Period shall be less than
                                    the rate per annum specified by such
                                    Existing Owner; and/or

                                            c. the principal amount of
                                    Outstanding Auction Rate Notes, if any,
                                    owned by such Existing Owner which such
                                    Existing Owner offers to sell without regard
                                    to the Auction Note Interest Rate for the
                                    next succeeding Auction Period; and

                                    (2) one or more Broker-Dealers may contact
                             Potential Owners to determine the principal amount
                             of Auction Rate Notes which each Potential Owner
                             offers to purchase, if the Auction Note Interest
                             Rate for the next succeeding Auction Period shall
                             not be less than the rate per annum specified by
                             such Potential Owner.

                                    The statement of an Existing Owner or a
                             Potential Owner referred to in (1) or (2) of this
                             paragraph (A) is herein referred to as an "Order,"
                             and each Existing Owner and each Potential Owner
                             placing an Order is herein referred to as a
                             "Bidder"; an Order described in clause (1)a is
                             herein referred to as a "Hold Order"; an Order
                             described in clauses (1)b and (2) is herein
                             referred to as a "Bid"; and an Order described in
                             clause (1)c is herein referred to as a "Sell
                             Order."

                             (B) (1) Subject to the provisions of Section
                             2.02(a)(ii) of this Appendix A, a Bid by an
                             Existing Owner shall constitute an irrevocable
                             offer to sell:

                                            a. the principal amount of
                                    Outstanding Auction Rate Notes specified in
                                    such Bid if the Auction Note Interest Rate
                                    determined as provided in this Section
                                    2.02(a) shall be less than the rate
                                    specified therein; or

                                            b. such principal amount, or a
                                    lesser principal amount of Outstanding
                                    Auction Rate Notes to be determined as set
                                    forth in Section 2.02(a)(iv)(A)(4) of this
                                    Appendix A, if the Auction Note Interest
                                    Rate determined as provided in this Section
                                    2.02(a) shall be equal to the rate specified
                                    therein; or

                                            c. such principal amount, or a
                                    lesser principal amount of Outstanding
                                    Auction Rate Notes to be determined as set
                                    forth in Section 2.02(a)(iv)(B)(3) of this
                                    Appendix A, if the rate specified therein
                                    shall be higher than the applicable Maximum
                                    Rate and Sufficient Bids have not been made.

                                      AA-13
<PAGE>

                                    (2) Subject to the provisions of Section
                             2.02(a)(ii) of this Appendix A, a Sell Order by an
                             Existing Owner shall constitute an irrevocable
                             offer to sell:

                                            a. the principal amount of
                                    Outstanding Auction Rate Notes specified in
                                    such Sell Order; or

                                            b. such principal amount, or a
                                    lesser principal amount of Outstanding
                                    Auction Rate Notes set forth in Section
                                    2.02(a)(iv)(B)(3) of this Appendix A, if
                                    Sufficient Bids have not been made.

                                    (3) Subject to the provisions of Section
                             2.02(a)(ii) of this Appendix A, a Bid by a
                             Potential Owner shall constitute an irrevocable
                             offer to purchase:

                                            a. the principal amount of
                                    Outstanding Auction Rate Notes specified in
                                    such Bid if the Auction Note Interest Rate
                                    determined as provided in this Section
                                    2.02(a) shall be higher than the rate
                                    specified in such Bid; or

                                            b. such principal amount, or a
                                    lesser principal amount of Outstanding
                                    Auction Rate Notes set forth in Section
                                    2.02(a)(iv)(A)(5) of this Appendix A, if the
                                    Auction Note Interest Rate determined as
                                    provided in this Section 2.02(a) shall be
                                    equal to the rate specified in such Bid.

                      (ii) (A) Each Broker-Dealer shall submit in writing to the
                      Auction Agent prior to the Submission Deadline on each
                      Auction Date all Orders obtained by such Broker-Dealer and
                      shall specify with respect to each such Order:

                                    (1) the name of the Bidder placing such
                             Order;

                                    (2) the aggregate principal amount of
                             Auction Rate Notes that are the subject of such
                             Order;

                                    (3) to the extent that such Bidder is an
                             Existing Owner:

                                            a. the principal amount of Auction
                                    Rate Notes, if any, subject to any Hold
                                    Order placed by such Existing Owner;

                                      AA-14
<PAGE>

                                            b. the principal amount of Auction
                                    Rate Notes, if any, subject to any Bid
                                    placed by such Existing Owner and the rate
                                    specified in such Bid; and

                                            c. the principal amount of Auction
                                    Rate Notes, if any, subject to any Sell
                                    Order placed by such Existing Owner;

                             and

                                    (4) to the extent such Bidder is a Potential
                             Owner, the rate specified in such Potential Owner's
                             Bid. (B) If any rate specified in any Bid contains
                             more than
                      three figures to the right of the decimal point, the
                      Auction Agent shall round such rate up to the next higher
                      one thousandth of 1%.

                             (C) If an Order or Orders covering all Outstanding
                      Auction Rate Notes owned by an Existing Owner is not
                      submitted to the Auction Agent prior to the Submission
                      Deadline, the Auction Agent shall deem a Hold Order to
                      have been submitted on behalf of such Existing Owner
                      covering the principal amount of Outstanding Auction Rate
                      Notes owned by such Existing Owner and not subject to an
                      Order submitted to the Auction Agent.

                             (D) A Broker-Dealer may submit Orders in Auctions
                      for its own account.

                             (E) Neither the Issuer, the Trustee nor the Auction
                      Agent shall be responsible for any failure of a
                      Broker-Dealer to submit an Order to the Auction Agent on
                      behalf of any Existing Owner or Potential Owner.

                             (F) If any Existing Owner submits through a
                      Broker-Dealer to the Auction Agent one or more Orders
                      covering in the aggregate more than the principal amount
                      of Outstanding Auction Rate Notes owned by such Existing
                      Owner, such Orders shall be considered valid as follows
                      and in the following order of priority:

                                    (1) All Hold Orders shall be considered
                             valid, but only up to the aggregate principal
                             amount of Outstanding Auction Rate Notes owned by
                             such Existing Owner, and if the aggregate principal
                             amount of Auction Rate Notes subject to such Hold
                             Orders exceeds the aggregate principal amount of
                             Auction Rate Notes owned by such Existing Owner,
                             the aggregate principal amount of Auction Rate
                             Notes subject to each such Hold Order shall be
                             reduced pro rata so that the aggregate principal
                             amount of Auction Rate Notes subject to such Hold
                             Order equals the aggregate principal amount of
                             Outstanding Auction Rate Notes owned by such
                             Existing Owner.

                                      AA-15
<PAGE>

                                    (2) a. Any Bid shall be considered valid up
                                    to an amount equal to the excess of the
                                    principal amount of Outstanding Auction Rate
                                    Notes owned by such Existing Owner over the
                                    aggregate principal amount of Auction Rate
                                    Notes subject to any Hold Order referred to
                                    in clause (1) of this paragraph (F);

                                            b. subject to subclause a. of this
                                    clause (2), if more than one Bid with the
                                    same rate is submitted on behalf of such
                                    Existing Owner and the aggregate principal
                                    amount of Outstanding Auction Rate Notes
                                    subject to such Bids is greater than such
                                    excess, such Bids shall be considered valid
                                    up to and including an amount equal to such
                                    excess;

                                            c. subject to subclauses a. and b.
                                    of this clause (2), if more than one Bid
                                    with different rates are submitted on behalf
                                    of such Existing Owner, such Bids shall be
                                    considered valid first in the ascending
                                    order of their respective rates until the
                                    highest rate is reached at which such excess
                                    exists and then at such rate up to the
                                    amount of such excess; and

                                            d. in any such event, the amount of
                                    Outstanding Auction Rate Notes, if any,
                                    subject to Bids not valid under this clause
                                    (2) shall be treated as the subject of a Bid
                                    by a Potential Owner at the rate therein
                                    specified; and

                                    (3) All Sell Orders shall be considered
                             valid up to an amount equal to the excess of the
                             principal amount of Outstanding Auction Rate Notes
                             owned by such Existing Owner over the aggregate
                             principal amount of Auction Rate Notes subject to
                             Hold Orders referred to in clause (1) of this
                             paragraph (F) and valid Bids referred to in clause
                             (2) of this paragraph (F).

                             (G) If more than one Bid for Auction Rate Notes is
                      submitted on behalf of any Potential Owner, each Bid
                      submitted shall be a separate Bid with the rate and
                      principal amount therein specified.

                             (H) An Existing Owner that offers to purchase
                      additional Auction Rate Notes is, for purposes of such
                      offer, treated as a Potential Owner.

                             (I) Any Bid or Sell Order submitted by an Existing
                      Owner covering an aggregate principal amount of Auction
                      Rate Notes not equal to an Authorized Denomination shall
                      be rejected and shall be deemed a Hold Order. Any Bid
                      submitted by a Potential Owner covering an aggregate
                      principal amount of Auction Rate Notes not equal to an
                      Authorized Denomination shall be rejected.

                                      AA-16
<PAGE>

                             (J) Any Bid specifying a rate higher than the
                      applicable Maximum Rate will (1) be treated as a Sell
                      Order if submitted by an Existing Owner and (2) not be
                      accepted if submitted by a Potential Owner. Any Bid
                      submitted by an Existing Owner or a Potential Owner
                      specifying a rate lower than the All Hold Rate shall be
                      treated as a Bid specifying the All Hold Rate, and any
                      such Bid shall be considered as valid and shall be
                      selected in the ascending order of the respective rates in
                      the Submitted Bids.

                             (K) Any Order submitted in an Auction by a
                      Broker-Dealer to the Auction Agent prior to the Submission
                      Deadline on any Auction Date shall be irrevocable.

                      (iii) (A) Not earlier than the Submission Deadline on each
                      Auction Date, the Auction Agent shall assemble all valid
                      Orders submitted or deemed submitted to it by the
                      Broker-Dealers (each such Order as submitted or deemed
                      submitted by a Broker-Dealer being herein referred to
                      individually as a "Submitted Hold Order," a "Submitted
                      Bid" or a "Submitted Sell Order," as the case may be, or
                      as a "Submitted Order," and collectively as "Submitted
                      Hold Orders," "Submitted Bids" or "Submitted Sell Orders,"
                      as the case may be, or as "Submitted Orders") and shall
                      determine:

                                    (1) the excess of the total principal amount
                             of Outstanding Auction Rate Notes over the sum of
                             the aggregate principal amount of Outstanding
                             Auction Rate Notes subject to Submitted Hold Orders
                             (such excess being herein referred to as the
                             "Available Auction Rate Notes"), and

                                    (2) from the Submitted Orders whether:

                                            a. the aggregate principal amount of
                                    Outstanding Auction Rate Notes subject to
                                    Submitted Bids by Potential Owners
                                    specifying one or more rates equal to or
                                    lower than the applicable Maximum Rate;

                                    exceeds or is equal to the sum of:

                                            b. the aggregate principal amount of
                                    Outstanding Auction Rate Notes subject to
                                    Submitted Bids by Existing Owners specifying
                                    one or more rates higher than the applicable
                                    Maximum Rate; and

                                      AA-17
<PAGE>

                                            c. the aggregate principal amount of
                                    Outstanding Auction Rate Notes subject to
                                    Submitted Sell Orders;

                             (in the event such excess or such equality exists,
                             other than because all of the Outstanding Auction
                             Rate Notes are subject to Submitted Hold Orders,
                             such Submitted Bids described in subclause a. above
                             shall be referred to collectively as "Sufficient
                             Bids"); and

                                    (3) if Sufficient Bids exist, the Bid
                             Auction Rate, which shall be the lowest rate
                             specified in such Submitted Bids such that if:

                                            a. (x) each Submitted Bid from
                                    Existing Owners specifying such lowest rate
                                    and (y) all other Submitted Bids from
                                    Existing Owners specifying lower rates were
                                    rejected, thus entitling such Existing
                                    Owners to continue to own the principal
                                    amount of Auction Rate Notes subject to such
                                    Submitted Bids; and

                                            b. (x) each such Submitted Bid from
                                    Potential Owners specifying such lowest rate
                                    and (y) all other Submitted Bids from
                                    Potential Owners specifying lower rates were
                                    accepted;

                      the result would be that such Existing Owners described in
                      subclause a. above would continue to own an aggregate
                      principal amount of Outstanding Auction Rate Notes which,
                      when added to the aggregate principal amount of
                      Outstanding Auction Rate Notes to be purchased by such
                      Potential Owners described in subclause b. above, would
                      equal not less than the Available Auction Rate Notes.

                             (B) Promptly after the Auction Agent has made the
                      determinations pursuant to Section 2.02(a)(iii)(A) of this
                      Appendix A, the Auction Agent shall advise the Trustee,
                      the Broker-Dealers and the Issuer of the Maximum Rate and
                      the All Hold Rate and the components thereof on the
                      Auction Date and, based on such determinations, the
                      Auction Note Interest Rate for the next succeeding
                      Interest Accrual Period as follows:

                                    (1) if Sufficient Bids exist, that the
                             Auction Note Interest Rate for the next succeeding
                             Interest Accrual Period shall be equal to the Bid
                             Auction Rate so determined;

                                    (2) if Sufficient Bids do not exist (other
                             than because all of the Outstanding Auction Rate
                             Notes are subject to Submitted Hold Orders), that
                             the Auction Note Interest Rate for the next
                             succeeding Interest Accrual Period shall be equal
                             to the applicable Maximum Rate; or

                                      AA-18
<PAGE>

                                    (3) if all Outstanding Auction Rate Notes
                             are subject to Submitted Hold Orders, that the
                             Auction Note Interest Rate for the next succeeding
                             Interest Accrual Period shall be equal to the
                             applicable All Hold Rate.

                             (C) Promptly after the Auction Agent has determined
                      the Auction Note Interest Rate, the Auction Agent shall
                      advise the Trustee of the Auction Note Interest Rate.

                      (iv) Existing Owners shall continue to own the principal
               amount of Auction Rate Notes that are subject to Submitted Hold
               Orders. If the Maximum Rate is equal to or greater than the Bid
               Auction Rate and if Sufficient Bids have been received by the
               Auction Agent, the Bid Auction Rate will be the Auction Note
               Interest Rate, and Submitted Bids and Submitted Sell Orders will
               be accepted or rejected and the Auction Agent will take such
               other action as described below in subparagraph (A).

                      If the Maximum Rate is less than the Bid Auction Rate, the
               Maximum Rate will be the Auction Note Interest Rate. If the
               Auction Agent has not received Sufficient Bids (other than
               because all of the Outstanding Auction Rate Notes are subject to
               Submitted Hold Orders), the Auction Note Interest Rate will be
               the Maximum Rate. In any of the cases described above, Submitted
               Orders will be accepted or rejected and the Auction Agent will
               take such other action as described below in subparagraph (B).

                             (A) If Sufficient Bids have been made and the
                      Maximum Rate is equal to or greater than the Bid Auction
                      Rate, and if the Maximum Rate does not apply (in which
                      case the Auction Note Interest Rate shall be the Bid
                      Auction Rate), all Submitted Sell Orders shall be accepted
                      and, subject to the provisions of clauses (D) and (E) of
                      this Section 2.02(a)(iv), Submitted Bids shall be accepted
                      or rejected as follows in the following order of priority,
                      and all other Submitted Bids shall be rejected:

                                    (1) Existing Owners' Submitted Bids
                             specifying any rate that is higher than the Auction
                             Note Interest Rate shall be accepted, thus
                             requiring each such Existing Owner to sell the
                             aggregate principal amount of Auction Rate Notes
                             subject to such Submitted Bids;

                                    (2) Existing Owners' Submitted Bids
                             specifying any rate that is lower than the Auction
                             Note Interest Rate shall be rejected, thus
                             entitling each such Existing Owner to continue to
                             own the aggregate principal amount of Auction Rate
                             Notes subject to such Submitted Bids;

                                      AA-19
<PAGE>

                                    (3) Potential Owners' Submitted Bids
                             specifying any rate that is lower than the Auction
                             Note Interest Rate shall be accepted;

                                    (4) Each Existing Owners' Submitted Bid
                             specifying a rate that is equal to the Auction Note
                             Interest Rate shall be rejected, thus entitling
                             such Existing Owner to continue to own the
                             aggregate principal amount of Auction Rate Notes
                             subject to such Submitted Bid, unless the aggregate
                             principal amount of Outstanding Auction Rate Notes
                             subject to all such Submitted Bids shall be greater
                             than the principal amount of Auction Rate Notes
                             (the "remaining principal amount") equal to the
                             excess of the Available Auction Rate Notes over the
                             aggregate principal amount of Auction Rate Notes
                             subject to Submitted Bids described in clauses (2)
                             and (3) of this Section 2.02(a)(iv)(A), in which
                             event such Submitted Bid of such Existing Owner
                             shall be rejected in part, and such Existing Owner
                             shall be entitled to continue to own the principal
                             amount of Auction Rate Notes subject to such
                             Submitted Bid, but only in an amount equal to the
                             aggregate principal amount of Auction Rate Notes
                             obtained by multiplying the remaining principal
                             amount by a fraction, the numerator of which shall
                             be the principal amount of Outstanding Auction Rate
                             Notes owned by such Existing Owner subject to such
                             Submitted Bid and the denominator of which shall be
                             the sum of the principal amount of Outstanding
                             Auction Rate Notes subject to such Submitted Bids
                             made by all such Existing Owners that specified a
                             rate equal to the Auction Note Interest Rate,
                             subject to the provisions of Section 2.02(a)(iv)(D)
                             of this Appendix A; and

                                    (5) Each Potential Owner's Submitted Bid
                             specifying a rate that is equal to the Auction Note
                             Interest Rate shall be accepted, but only in an
                             amount equal to the principal amount of Auction
                             Rate Notes obtained by multiplying the excess of
                             the aggregate principal amount of Available Auction
                             Rate Notes over the aggregate principal amount of
                             Auction Rate Notes subject to Submitted Bids
                             described in clauses (2), (3) and (4) of this
                             Section 2.02(a)(iv)(A) by a fraction the numerator
                             of which shall be the aggregate principal amount of
                             Outstanding Auction Rate Notes subject to such
                             Submitted Bid and the denominator of which shall be
                             the sum of the principal amount of Outstanding
                             Auction Rate Notes subject to Submitted Bids made
                             by all such Potential Owners that specified a rate
                             equal to the Auction Note Interest Rate, subject to
                             the provisions of Section 2.02(a)(iv)(D) and (E) of
                             this Appendix A.

                                      AA-20
<PAGE>

                             (B) If Sufficient Bids have not been made (other
                      than because all of the Outstanding Auction Rate Notes are
                      subject to Submitted Hold Orders), or if the Maximum Rate
                      is less than the Bid Auction Rate (in which case the
                      Auction Note Interest Rate shall be the Maximum Rate),
                      subject to the provisions of Section 2.02(a)(iv)(D) and
                      (E) of this Appendix A, Submitted Orders shall be accepted
                      or rejected as follows in the following order of priority
                      and all other Submitted Bids shall be rejected:

                                    (1) Existing Owners' Submitted Bids
                             specifying any rate that is equal to or lower than
                             the Auction Note Interest Rate shall be rejected,
                             thus entitling such Existing Owners to continue to
                             own the aggregate principal amount of Auction Rate
                             Notes subject to such Submitted Bids;

                                    (2) Potential Owners' Submitted Bids
                             specifying (x) any rate that is equal to or lower
                             than the Auction Note Interest Rate shall be
                             accepted and (y) any rate that is higher than the
                             Auction Note Interest Rate shall be rejected; and

                                    (3) Each Existing Owner's Submitted Bid
                             specifying any rate that is higher than the Auction
                             Note Interest Rate and the Submitted Sell Order of
                             each Existing Owner shall be accepted, thus
                             entitling each Existing Owner that submitted any
                             such Submitted Bid or Submitted Sell Order to sell
                             the Auction Rate Notes subject to such Submitted
                             Bid or Submitted Sell Order, but in both cases only
                             in an amount equal to the aggregate principal
                             amount of Auction Rate Notes obtained by
                             multiplying the aggregate principal amount of
                             Auction Rate Notes subject to Submitted Bids
                             described in clause (2)(x) of this Section
                             2.02(a)(iv)(B) by a fraction, the numerator of
                             which shall be the aggregate principal amount of
                             Outstanding Auction Rate Notes owned by such
                             Existing Owner subject to such Submitted Bid or
                             Submitted Sell Order and the denominator of which
                             shall be the aggregate principal amount of
                             Outstanding Auction Rate Notes subject to all such
                             Submitted Bids and Submitted Sell Orders.

                             (C) If all Auction Rate Notes are subject to
                      Submitted Hold Orders, all Submitted Bids shall be
                      rejected.

                             (D) If, as a result of the procedures described in
                      paragraph (A) or (B) of this Section 2.02(a)(iv), any
                      Existing Owner would be entitled or required to sell, or
                      any Potential Owner would be entitled or required to
                      purchase, a principal amount of Auction Rate Notes that is
                      not equal to an Authorized Denomination, the Auction Agent
                      shall, in such manner as in its sole discretion it shall
                      determine, round up or down the principal amount of
                      Auction Rate Notes to be purchased or sold by any Existing
                      Owner or Potential Owner so that the principal amount of
                      Auction Rate Notes purchased or sold by each Existing
                      Owner or Potential Owner shall be equal to an Authorized
                      Denomination.

                                      AA-21
<PAGE>

                             (E) If, as a result of the procedures described in
                      paragraph (A) of this Section 2.02(a)(iv), any Potential
                      Owner would be entitled or required to purchase less than
                      an Authorized Denomination of Auction Rate Notes, the
                      Auction Agent shall, in such manner as in its sole
                      discretion it shall determine, allocate Auction Rate Notes
                      for purchase among Potential Owners so that only Auction
                      Rate Notes in Authorized Denominations are purchased by
                      any Potential Owner, even if such allocation results in
                      one or more of such Potential Owners not purchasing any
                      Auction Rate Notes.

                      (v) Based on the result of each Auction, the Auction Agent
               shall determine the aggregate principal amount of Auction Rate
               Notes to be purchased and the aggregate principal amount of
               Auction Rate Notes to be sold by Potential Owners and Existing
               Owners on whose behalf each Broker-Dealer submitted Bids or Sell
               Orders and, with respect to each Broker-Dealer, to the extent
               that such aggregate principal amount of Auction Rate Notes to be
               sold differs from such aggregate principal amount of Auction Rate
               Notes to be purchased, determine to which other Broker-Dealer or
               Broker-Dealers acting for one or more purchasers such
               Broker-Dealer shall deliver, or from which other Broker-Dealer or
               Broker-Dealers acting for one or more sellers such Broker-Dealer
               shall receive, as the case may be, Auction Rate Notes.

                      (vi) Notwithstanding anything in this Appendix A to the
               contrary, (A) no Auction for the Auction Rate Notes for an
               Auction Period of less than 180 days will be held on any Auction
               Date hereunder on which there are insufficient moneys in the
               Collection Fund to pay, or otherwise held by the Trustee under
               the Indenture and available to pay, the principal of and interest
               due on the Auction Rate Notes on the Auction Rate Distribution
               Date immediately following such Auction Date, and (B) no Auction
               will be held on any Auction Date hereunder during the continuance
               of a Payment Default. The Trustee shall promptly notify the
               Auction Agent of any such occurrence.

               (b) APPLICATION OF INTEREST PAYMENTS FOR THE AUCTION RATE NOTES.

                      (i) The Trustee shall determine not later than 2:00 p.m.,
               New York City time, on the Business Day next succeeding an
               Auction Rate Distribution Date, whether a Payment Default has
               occurred. If a Payment Default has occurred, the Trustee shall,
               not later than 2:15 p.m., New York City time, on such Business
               Day, send a notice thereof in substantially the form of
               Attachment A attached hereto to the Auction Agent by telecopy or
               similar means and, if such Payment Default is cured, the Trustee
               shall immediately send a notice in substantially the form of
               Attachment B attached hereto to the Auction Agent by telecopy or
               similar means.

                                      AA-22
<PAGE>

                      (ii) Not later than 2:00 p.m., New York City time, on each
               anniversary of the Date of Issuance, the Trustee shall pay to the
               Auction Agent, in immediately available funds out of amounts in
               the Collection Fund, an amount equal to the Auction Agent Fee as
               set forth in the Auction Agent Agreement. Not later than 2:00
               p.m., New York City time, on each Auction Date, the Trustee shall
               pay to the Auction Agent, in immediately available funds out of
               amounts in the Collection Fund, an amount equal to the
               Broker-Dealer Fee as calculated in the Auction Agent Agreement.
               The Trustee shall, from time to time at the request of the
               Auction Agent and at the direction of an Authorized
               Representative, reimburse the Auction Agent for its reasonable
               expenses as provided in the Auction Agent Agreement, such
               expenses to be paid out of amounts available therefor in the
               Collection Fund.

               (c) CALCULATION OF MAXIMUM RATE, ALL HOLD RATE, APPLICABLE LIBOR
        RATE, AND NON-PAYMENT RATE. The Auction Agent shall calculate the
        Maximum Rate, Applicable LIBOR Rate, and All Hold Rate, as the case may
        be, on each Auction Date and shall notify the Trustee and the
        Broker-Dealers of the Maximum Rate, Applicable LIBOR Rate and All Hold
        Rate, as the case may be, as provided in the Auction Agent Agreement;
        provided, that if the ownership of the Auction Rate Notes is no longer
        maintained in Book-Entry Form, or if a Payment Default has occurred,
        then the Trustee shall determine the Maximum Rate, Applicable LIBOR
        Rate, All Hold Rate and Non-Payment Rate for each such Interest Accrual
        Period. If the ownership of the Auction Rate Notes is no longer
        maintained in Book-Entry Form by the Clearing Agency, the Trustee shall
        calculate the Maximum Rate on the Business Day immediately preceding the
        first day of each Interest Accrual Period after the delivery of
        certificates representing the Auction Rate Notes pursuant to the
        Indenture. If a Payment Default shall have occurred, the Trustee shall
        calculate the Non-Payment Rate on the Interest Rate Determination Date
        for (i) each Interest Accrual Period commencing after the occurrence and
        during the continuance of such Payment Default and (ii) any Interest
        Accrual Period commencing less than two Business Days after the cure of
        any Payment Default. The determination by the Trustee or the Auction
        Agent, as the case may be, of the Maximum Rate, Applicable LIBOR Rate,
        All Hold Rate and Non-Payment Rate shall (in the absence of manifest
        error) be final and binding upon all parties. If calculated or
        determined by the Auction Agent, the Auction Agent shall promptly advise
        the Trustee of the Maximum Rate, Applicable LIBOR Rate and All Hold
        Rate. The Trustee shall be allowed to hire such consultants or experts
        as it deems necessary to make any such calculations required of the
        Trustee as set forth in this Indenture or the Auction Agent Agreement.

               (d) NOTIFICATION OF RATES, AMOUNTS AND PAYMENT DATES.

                      (i) By 12:00 noon, New York City time, on the Business Day
               following each Regular Record Date, the Trustee shall determine
               the aggregate amounts of interest distributable on the next
               succeeding Auction Rate Distribution Date to the beneficial
               owners of Auction Rate Notes.

                                      AA-23
<PAGE>

                      (ii) At least four days prior to any Auction Rate
               Distribution Date, the Trustee shall:

                             (A) confirm with the Auction Agent, so long as no
                      Payment Default has occurred and is continuing and the
                      ownership of the Auction Rate Notes is maintained in
                      Book-Entry Form by the Clearing Agency, (1) the date of
                      such next Auction Rate Distribution Date and (2) the
                      amount payable to the Auction Agent on the Auction Date
                      pursuant to Section 2.02(b)(ii) of this Appendix A;

                             (B) pursuant to Section 2.01 of this Appendix A,
                      advise the Registered Owners of the Auction Rate Notes of
                      any Carry-Over Amount accruing on such Auction Rate Notes;
                      and

                             (C) advise the Clearing Agency, so long as the
                      ownership of the Auction Rate Notes is maintained in
                      Book-Entry Form by the Clearing Agency, upon request, of
                      the aggregate amount of interest distributable on such
                      next Auction Rate Distribution Date to the beneficial
                      owners of the Auction Rate Notes.

                             If any day scheduled to be an Auction Rate
                      Distribution Date shall be changed after the Trustee shall
                      have given the notice or confirmation referred to in
                      clause (i) of the preceding sentence, the Trustee shall,
                      not later than 11:15 a.m., New York City time, on the
                      Business Day next preceding the earlier of the new Auction
                      Rate Distribution Date or the old Auction Rate
                      Distribution Date, by such means as the Trustee deems
                      practicable, give notice of such change to the Auction
                      Agent, so long as no Payment Default has occurred and is
                      continuing and the ownership of the Auction Rate Notes is
                      maintained in Book-Entry Form by the Clearing Agency.

               (e)    AUCTION AGENT.

                      (i) Deutsche Bank Trust Company Americas is hereby
               appointed as Initial Auction Agent to serve as agent for the
               Issuer in connection with Auctions. The Trustee and the Issuer
               will, and the Trustee is hereby directed to, enter into the
               Initial Auction Agent Agreement with Deutsche Bank Trust Company
               Americas, as the Initial Auction Agent. Any Substitute Auction
               Agent shall be (A) a bank, national banking association or trust
               company duly organized under the laws of the United States of
               America or any state or territory thereof having its principal
               place of business in the Borough of Manhattan, New York, or such
               other location as approved by the Trustee in writing and having a
               combined capital stock or surplus of at least $50,000,000, or (B)
               a member of the National Association of Securities Dealers, Inc.,
               having a capitalization of at least $50,000,000, and, in either
               case, authorized by law to perform all the duties imposed upon it
               hereunder and under the Auction Agent Agreement. The Auction
               Agent may at any time resign and be discharged of the duties and
               obligations created by this Appendix A by giving at least 90
               days' notice to the Trustee, each Broker-Dealer and the Issuer.

                                      AA-24
<PAGE>

               The Auction Agent may be removed at any time by the Trustee upon
               the written direction of an Authorized Representative or the
               Registered Owners of 51% of the aggregate principal amount of the
               Auction Rate Notes then Outstanding, and if by such Registered
               Owners, by an instrument signed by such Registered Owners or
               their attorneys and filed with the Auction Agent, the Issuer and
               the Trustee upon at least 90 days' written notice. Neither
               resignation nor removal of the Auction Agent pursuant to the
               preceding two sentences shall be effective until and unless a
               Substitute Auction Agent has been appointed and has accepted such
               appointment. If required by the Issuer, a Substitute Auction
               Agent Agreement shall be entered into with a Substitute Auction
               Agent. Notwithstanding the foregoing, the Auction Agent may
               terminate the Auction Agent Agreement if, within 25 days after
               notifying the Trustee, each Broker-Dealer and the Issuer in
               writing that it has not received payment of any Auction Agent Fee
               due it in accordance with the terms of the Auction Agent
               Agreement, the Auction Agent does not receive such payment.

                      (ii) If the Auction Agent shall resign or be removed or be
               dissolved, or if the property or affairs of the Auction Agent
               shall be taken under the control of any state or federal court or
               administrative body because of bankruptcy or insolvency, or for
               any other reason, the Issuer, shall use its best efforts to
               appoint a Substitute Auction Agent.

                      (iii) The Auction Agent is acting as agent for the Issuer
               in connection with Auctions. In the absence of bad faith,
               negligent failure to act or negligence on its part, the Auction
               Agent shall not be liable for any action taken, suffered or
               omitted or any error of judgment made by it in the performance of
               its duties under the Auction Agent Agreement and shall not be
               liable for any error of judgment made in good faith unless the
               Auction Agent shall have been negligent in ascertaining (or
               failing to ascertain) the pertinent facts.

               (f) BROKER-DEALERS.

                      (i) The Issuer hereby appoints Deutsche Bank Securities
               Inc., J.P. Morgan Securities Inc., SunTrust Capital Markets Inc.
               and Nelnet Capital, LLC as Broker-Dealers for Auction Rate Notes.
               The Auction Agent will enter into a Broker-Dealer Agreement with
               Credit Suisse Securities (USA) LLC, Deutsche Bank Securities
               Inc., J.P. Morgan Securities Inc., SunTrust Capital Markets Inc.
               and Nelnet Capital, LLC as the initial Broker-Dealers for the
               Auction Rate Notes. An Authorized Representative may, from time
               to time, approve one or more additional persons to serve as
               Broker-Dealers under Broker-Dealer Agreements and shall be
               responsible for providing such Broker-Dealer Agreements to the
               Trustee and the Auction Agent.

                                      AA-25
<PAGE>

                      (ii) Any Broker-Dealer may be removed at any time, at the
               request of an Authorized Representative, but there shall, at all
               times, be at least one Broker-Dealer appointed and acting as
               such.

               (g) CHANGES IN AUCTION PERIOD OR PERIODS AND CERTAIN PERCENTAGES.

                      (i) While any of the Auction Rate Notes are Outstanding,
               the Issuer may, from time to time, change the length of one or
               more Auction Periods (an "Auction Period Adjustment"), in order
               to conform with then current market practice with respect to
               similar securities or to accommodate economic and financial
               factors that may affect or be relevant to the length of the
               Auction Period and the interest rate borne by the Auction Rate
               Notes. The Issuer shall not initiate an Auction Period Adjustment
               unless it shall have received the written consent of the
               applicable Broker-Dealer, which consent shall not be unreasonably
               withheld, not later than 10 days nor more than 20 days prior to
               the Auction Date for such Auction Period. The Issuer shall
               initiate the Auction Period Adjustment by giving written notice
               by Issuer Order to the Trustee, the Auction Agent, the applicable
               Broker-Dealer, each Rating Agency and the Clearing Agency in
               substantially the form of, or containing substantially the
               information contained in, Attachment C attached hereto at least
               10 days prior to the Auction Date for such Auction Period.

                      (ii) An Auction Period Adjustment shall take effect only
               if (A) the Trustee and the Auction Agent receive, by 11:00 a.m.,
               New York City time, on the Business Day before the Auction Date
               for the first such Auction Period, an Issuer Certificate in
               substantially the form attached as, or containing substantially
               the same information contained in, Attachment D attached hereto,
               authorizing the Auction Period Adjustment specified in such
               certificate along with a copy of the written consent of the
               applicable Broker-Dealer and, (B) Sufficient Bids exist as of the
               Auction on the Auction Date for such first Auction Period. If the
               condition referred to in (A) above is not met, the applicable
               Auction Note Interest Rate for the next Auction Period shall be
               determined pursuant to the above provisions of this Section 2.02
               and the Auction Period shall be the Auction Period determined
               without reference to the proposed change. If the condition
               referred to in clause (A) above is met but the condition referred
               in clause (B) above is not met, the applicable Auction Note
               Interest Rate for the next Auction Period shall be the Maximum
               Rate and the Auction Period shall be the Auction Period
               determined without reference to the proposed change.

               In connection with any Auction Period Adjustment, the Auction
        Agent shall provide such further notice to such parties as is specified
        in Section 2.06 of the Auction Agent Agreement.

                                      AA-26
<PAGE>

               (h) CHANGES IN THE AUCTION DATE. The applicable Broker-Dealer,
        with the written consent of an Authorized Representative may specify an
        earlier Auction Date (but in no event more than five Business Days
        earlier) than the Auction Date that would otherwise be determined in
        accordance with the definition of "Auction Date" in Article I of this
        Appendix A with respect to one or more specified Auction Periods in
        order to conform with then current market practice with respect to
        similar securities or to accommodate economic and financial factors that
        may affect or be relevant to the day of the week constituting an Auction
        Date and the interest rate borne on the Auction Rate Notes. The
        applicable Broker-Dealer shall deliver a written request for consent to
        such change in the length of the Auction Date to the Issuer at least 14
        days prior to the effective date of such change. If the Issuer shall
        have delivered such written consent to the applicable Broker-Dealer,
        such Broker-Dealer shall provide notice of its determination to specify
        an earlier Auction Date for one or more Auction Periods by means of a
        written notice delivered at least 10 days prior to the proposed changed
        Auction Date to the Trustee, the Auction Agent, the Issuer, each Rating
        Agency and the Clearing Agency. Such notice shall be substantially in
        the form of, or contain substantially the information contained in,
        Attachment E attached hereto.

               In connection with any change described in this Section 2.02(h),
        the Auction Agent shall provide such further notice to such parties as
        is specified in Section 2.06 of the Auction Agent Agreement.

        SECTION 2.03. ADDITIONAL PROVISIONS REGARDING THE INTEREST RATES ON THE
AUCTION RATE NOTES. The determination of the Auction Note Interest Rate by the
Auction Agent or any other Person pursuant to the provisions of the applicable
Section of this Article II shall be conclusive and binding on the Registered
Owners of the Auction Rate Notes to which such Auction Note Interest Rate
applies, and the Issuer and the Trustee may rely thereon for all purposes.

        In no event shall the cumulative amount of interest paid or payable on
the Auction Rate Notes (including interest calculated as provided herein, plus
any other amounts that constitute interest on the Auction Rate Notes under
applicable law, which are contracted for, charged, reserved, taken or received
pursuant to the Auction Rate Notes or related documents) calculated from the
Date of Issuance through any subsequent day during the term of the Auction Rate
Notes or otherwise prior to payment in full of the Auction Rate Notes exceed the
amount permitted by applicable law. If the applicable law is ever judicially
interpreted so as to render usurious any amount called for under the Auction
Rate Notes or related documents or otherwise contracted for, charged, reserved,
taken or received in connection with the Auction Rate Notes, or if the
redemption or acceleration of the maturity of the Auction Rate Notes results in
payment to or receipt by the Registered Owner or any former Registered Owner of
the Auction Rate Notes of any interest in excess of that permitted by applicable
law, then, notwithstanding any provision of the Auction Rate Notes or related
documents to the contrary, all excess amounts theretofore paid or received with
respect to the Auction Rate Notes shall be credited on the principal balance of
the Auction Rate Notes (or, if the Auction Rate Notes have been paid or would
thereby be paid in full, refunded by the recipient thereof), and the provisions
of the Auction Rate Notes and related documents shall automatically and
immediately be deemed reformed and the amounts thereafter collectible hereunder
and thereunder reduced, without the necessity of the execution of any new
document, so as to comply with the applicable law, but so as to permit the
recovery of the fullest amount otherwise called for under the Auction Rate Notes
and under the related documents.

                                      AA-27
<PAGE>

        SECTION 2.04. AMENDMENTS TO THIS APPENDIX A. The provisions of this
Appendix A, including without limitation the definitions of All Hold Rate,
Auction Note Interest Rate, Auction Rate Distribution Date, Maximum Rate and
Non-Payment Rate, may be amended pursuant to the Indenture by obtaining the
consent of the Registered Owners of all affected Outstanding Auction Rate Notes
as follows. If on the first Auction Date occurring at least 20 days after the
date on which the Trustee mailed notice of such proposed amendment to the
Registered Owners of the affected Outstanding Auction Rate Notes as required by
the Indenture, (i) the Auction Note Interest Rate which is determined on such
date is the Bid Auction Rate or the All Hold Rate and (ii) there is delivered to
the Issuer and the Trustee an Opinion of Counsel to the effect that such
amendment shall not adversely affect the validity of the Auction Rate Notes, the
proposed amendment shall be deemed to have been consented to by the Registered
Owners of all affected Outstanding Auction Rate Notes.

                                      AA-28
<PAGE>

                                  ATTACHMENT A

                            NOTICE OF PAYMENT DEFAULT

                        NELNET STUDENT LOAN TRUST 2007-1
                         STUDENT LOAN ASSET-BACKED NOTES
                                    CLASS B-2
                               AUCTION RATE NOTES

        NOTICE IS HEREBY GIVEN that a Payment Default has occurred and is
continuing with respect to the Auction Rate Notes identified above. The next
Auction for the Auction Rate Notes will not be held. The Auction Rate for the
Auction Rate Notes for the next succeeding Interest Period shall be the
Non-Payment Rate.

                                 ZIONS FIRST  NATIONAL BANK, as Trustee

Dated:                           By
-------------------------         --------------------------------------------

<PAGE>

                                  ATTACHMENT B

                        NOTICE OF CURE OF PAYMENT DEFAULT

                        NELNET STUDENT LOAN TRUST 2007-1
                         STUDENT LOAN ASSET-BACKED NOTES
                                    CLASS B-2
                               AUCTION RATE NOTES

        NOTICE IS HEREBY GIVEN that a Payment Default with respect to the
Auction Rate Notes identified above has been waived or cured. The next Auction
Rate Distribution Date is __________________________ and the Auction Date is
__________________________.

                                 ZIONS FIRST NATIONAL BANK, as Trustee

Dated:                           By
-------------------------         --------------------------------------------

<PAGE>

                                  ATTACHMENT C

                       NOTICE OF PROPOSED CHANGE IN LENGTH
                         OF ONE OR MORE AUCTION PERIODS

                        NELNET STUDENT LOAN TRUST 2007-1
                         STUDENT LOAN ASSET-BACKED NOTES
                                    CLASS B-2
                               AUCTION RATE NOTES

        Notice is hereby given that the Issuer proposes to change the length of
one or more Auction Periods pursuant to the Indenture of Trust, as amended (the
"Indenture") as follows:

        1. The change shall take effect on _______________, the Interest Rate
Adjustment Date for the next Auction Period (the "Effective Date").

        2. The Auction Period Adjustment in Paragraph 1 shall take place only if
(a) the Trustee and the Auction Agent receive, by 11:00 a.m., New York City
time, on the Business Day before the Auction Date for the Auction Period
commencing on the Effective Date, a certificate from the Issuer, as required by
the Indenture authorizing the change in length of one or more Auction Periods
and (b) Sufficient Bids exist on the Auction Date for the Auction Period
commencing on the Effective Date.

        3. If the condition referred to in paragraph 2(a) above is not met, the
Auction Rate for the Auction Period commencing on the Effective Date will be
determined pursuant to the Auction Procedures and the Auction Period shall be
the Auction Period determined without reference to the proposed change. If the
condition referred to in paragraph 2(a) is met but the condition referred to in
(b) above is not met, the Auction Rate for the Auction Period commencing on the
Effective Date shall be the Maximum Rate and the Auction Period shall be the
Auction Period determined without reference to the proposed change.

        4. It is hereby represented, upon advice of the Auction Agent for the
Class B-2 Notes described herein, that there were Sufficient Bids for such Class
B-2 Notes at the Auction immediately preceding the date of this Notice.

        5. Terms not defined in this Notice shall have the meanings set forth in
the Indenture entered into in connection with the Class B-2 Notes.

        6. The Issuer hereby certifies the instructions set forth in this Notice
are in accordance with the terms and provisions of the Indenture, the Auction
Agent Agreement and the Broker-Dealer Agreement.

                                      NELNET STUDENT LOAN TRUST 2007-1

Dated:                                By
       --------------------------        ---------------------------------------

<PAGE>

                                  ATTACHMENT D

                      NOTICE ESTABLISHING CHANGE IN LENGTH
                         OF ONE OR MORE AUCTION PERIODS

                        NELNET STUDENT LOAN TRUST 2007-1
                         STUDENT LOAN ASSET-BACKED NOTES
                                    CLASS B-2
                               AUCTION RATE NOTES

        Notice is hereby given that the Issuer hereby establishes new lengths
for one or more Auction Periods pursuant to the Indenture of Trust, as amended:

        1. The change shall take effect on _______________, the Interest Rate
Adjustment Date for the next Auction Period (the "Effective Date").

        2. For the Auction Period commencing on the Effective Date, the Interest
Rate Adjustment Date shall be _______________, or the next succeeding Business
Day if such date is not a Business Day.

        3. For Auction Periods occurring after the Auction Period commencing on
the Effective Date, the Interest Rate Adjustment Date shall be
[_______________(date) and every ______________(number) ______________(day of
week) thereafter] [every ______________(number) ______________(day of week)
after the date set forth in paragraph 2 above], or the next Business Day if any
such day is not a Business Day; provided, however, that the length of subsequent
Auction Periods shall be subject to further change hereafter as provided in the
Indenture of Trust.

        4. The changes described in paragraphs 2 and 3 above shall take place
only upon delivery of this Notice and the satisfaction of other conditions set
forth in the Indenture of Trust and our prior notice dated _______________
regarding the proposed change.

        5. Terms not defined in this Notice shall have the meanings set forth in
the Indenture of Trust relating to the Class B-2 Notes.

        6. The Issuer hereby certifies the instructions set forth in this Notice
are in accordance with the terms and provisions of the Indenture, the Auction
Agent Agreement and the Broker-Dealer Agreement.

                                     NELNET STUDENT LOAN TRUST 2007-1

Dated:                               By
       --------------------------       ----------------------------------------

<PAGE>

                                  ATTACHMENT E

                        NOTICE OF CHANGE IN AUCTION DATE

                        NELNET STUDENT LOAN TRUST 2007-1
                         STUDENT LOAN ASSET-BACKED NOTES
                                    CLASS B-2
                               AUCTION RATE NOTES

        Notice is hereby given by [______________], as Broker-Dealer for the
Auction Rate Notes, that with respect to the Auction Rate Notes, the Auction
Date is hereby changed as follows:

        1. With respect to Class B-2 Notes, the definition of "Auction Date"
shall be deemed amended by substituting "_______________(number) Business Day"
in the second line thereof and by substituting "_______________(number) Business
Days" for "two Business Days" in subsection (d) thereof.

        2. This change shall take effect on _______________ which shall be the
Auction Date for the Auction Period commencing on _______________.

        3. The Auction Date for the Class B-2 Notes shall be subject to further
change hereafter as provided in the Indenture of Trust.

        4. Terms not defined in this Notice shall have the meaning set forth in
the Indenture of Trust, as amended, relating to the Class B-2 Notes.

        5. The Broker-Dealer hereby certifies the instructions set forth in this
Notice are in accordance with the terms and provisions of the Indenture, the
Auction Agent Agreement and the Broker-Dealer Agreement.

                                     [BROKER-DEALER], as Broker-Dealer

Dated:                               By
       ----------------------------     ----------------------------------------

<PAGE>

                                    EXHIBIT A

                      ELIGIBLE LOAN ACQUISITION CERTIFICATE

        This Eligible Loan Acquisition Certificate is submitted pursuant to the
provisions of Section 5.02 of the Indenture of Trust, dated as of May 1, 2007,
as amended (the "Indenture"), between Nelnet Student Loan Trust 2007-1 (the
"Issuer") and Zions First National Bank, as Trustee. All capitalized terms used
in this Certificate and not otherwise defined herein shall have the same
meanings given to such terms in the Indenture. In your capacity as Trustee, you
are hereby authorized and requested to disburse to _________________ (the
"Seller") the sum of $__________ for the acquisition of Eligible Loans and the
sum of $____________ to fund "Add-On Consolidation Loans". With respect to the
Eligible Loans so to be acquired, the Issuer hereby certifies as follows:

        1. The Eligible Loans to be acquired are those specified in Schedule A
attached hereto (the "Acquired Eligible Loans"). The remaining unpaid principal
amount of each Acquired Eligible Loan is as shown on such Schedule A.

        2. The amount to be disbursed pursuant to this Certificate does not
exceed the amount permitted by Section 5.02 of the Indenture, plus accrued
interest.

        3. Each Acquired Eligible Loan is an Eligible Loan authorized so to be
acquired by the Indenture.

        4. The following items have been received and are being retained, on
your behalf, by the Issuer, the Master Servicer or a Subservicer:

               (a) a copy of the Student Loan Purchase Agreement(s) between the
        Issuer and the Eligible Lender with respect to the Acquired Eligible
        Loans (original copy maintained on file with the Issuer on behalf of the
        Trustee);

               (b) with respect to each Insured Loan included among the Acquired
        Eligible Loans, the Certificate of Insurance relating thereto;

               (c) with respect to each Guaranteed Loan included among the
        Acquired Eligible Loans, a certified copy of the Guarantee Agreement
        relating thereto;

               (d) an opinion of counsel to the Issuer specifying each action
        necessary to perfect a security interest in all Eligible Loans to be
        acquired by the Issuer pursuant to the Student Loan Purchase Agreements
        in favor of the Trustee in the manner provided for by the provisions of
        20 U.S.C. ss. 1087-2(d)(3) or 20 U.S.C. ss. 1082(m)(1)(D)(iv), as
        applicable, (you are authorized to rely on the advice of a single
        blanket opinion of counsel to the Issuer until such time as the Issuer
        shall provide any amended opinion to you); and

               (e) instruments duly assigning the Acquired Eligible Loans to the
        Trustee.

<PAGE>

        5. The Issuer is not, on the date hereof, in default under the Indenture
or in the performance of any of its covenants and agreements made in the Student
Loan Purchase Agreement(s) relating to the Acquired Eligible Loans, and, to the
best knowledge of the Issuer, the Eligible Lender is not in default under the
Student Loan Purchase Agreement applicable to the Acquired Eligible Loans. The
Issuer is not aware of any default existing on the date hereof under any of the
other documents referred to in paragraph 4 hereof, nor of any circumstances
which would reasonably prevent reliance upon the opinion of counsel referred to
in paragraph 4(d) hereof.

        6. All of the conditions specified in the Student Loan Purchase
Agreement(s) applicable to the Acquired Eligible Loans and the Indenture for the
acquisition of the Acquired Eligible Loans and the disbursement hereby
authorized and requested have been satisfied; provided that the Issuer may waive
the requirement of receiving an opinion of counsel from the counsel to the
Lender.

        7. With respect to all Acquired Eligible Loans which are Insured,
Insurance is in effect with respect thereto, and with respect to all Acquired
Eligible Loans which are Guaranteed, the Guarantee Agreement is in effect with
respect thereto.

        8. The Issuer is not in default in the performance of any of its
covenants and agreements made in any Contract of Insurance or the Guarantee
Agreement applicable to the Acquired Eligible Loans.

        9. The proposed use of moneys in the Acquisition Fund (including the
Costs of Issuance Account and the Prefunding Account) is in compliance with the
provisions of the Indenture.

        10. The undersigned is authorized to sign and submit this Certificate on
behalf of the Issuer.

        11. Eligible Loans are being acquired at a price which permits the
results of the cash flow analyses provided to the Rating Agencies on the Date of
Issuance and as revised/amended to be sustained.

        WITNESS my hand this _____ day of ___________.

                                        NELNET STUDENT LOAN TRUST 2007-1

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

                                       A-2

<PAGE>

                                   EXHIBIT B-1

                             FORM OF CLASS A-1 NOTE

        Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer (as
defined below) 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 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. THIS NOTE IS NOT GUARANTEED OR INSURED BY ANY
GOVERNMENTAL AGENCY.

                        NELNET STUDENT LOAN TRUST 2007-1
                         STUDENT LOAN ASSET-BACKED NOTES
                            SENIOR CLASS A-1 (LIBOR)

REGISTERED NO. R-__                                      REGISTERED $__________

   DATE OF ISSUANCE         MATURITY DATE      CUSIP NO.           ISIN NO.
     May 22, 2007         November 27, 2018   64032E AA 5        US64032EAA55

PRINCIPAL SUM:        **DOLLARS**
REGISTERED OWNER:     **CEDE & CO.**

        Nelnet Student Loan Trust 2007-1, a statutory trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, on each Quarterly Distribution Date the principal sum equal
to the portion of the Class A Principal Distribution Amount allocable to this
Note for such Quarterly Distribution Date, as described in the Indenture of
Trust, dated as of May 1, 2007, between the Issuer (by M&T Trust Company of
Delaware, in its capacity as Delaware Trustee) and Zions First National Bank, a
national banking association, as eligible lender trustee and indenture trustee
(the "Trustee") (capitalized terms used but not defined herein being defined in
Article I of the Indenture, which also contains rules as to usage that shall be
applicable herein); provided, however, that the entire unpaid principal amount
of this Note shall be due and payable on the Maturity Date specified above (the
"Class A-1 Maturity Date").

<PAGE>

        The Issuer shall pay interest on this Note at the rate per annum equal
to the Class A-1 Rate (as defined herein), on each Quarterly Distribution 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 Quarterly
Distribution Date or the Date of Issuance in the case of the first Quarterly
Distribution Date (after giving effect to all payments of principal made on the
preceding Quarterly Distribution Date), subject to certain limitations contained
in the Indenture. Interest on this Note shall accrue from and including the
preceding Quarterly Distribution Date (or, in the case of the first Interest
Accrual Period, the Date of Issuance) to but excluding the following Quarterly
Distribution Date (each an "Interest Accrual Period"). Interest shall be
calculated on the basis of the actual number of days elapsed in each Interest
Accrual Period divided by 360 and rounding the resultant figure to the fifth
decimal point. Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof.

        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
Trustee whose name appears below 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.

                                      B-1-2

<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                       NELNET STUDENT LOAN TRUST 2007-1

                                       By  M&T TRUST COMPANY OF
                                           DELAWARE, not in its
                                           individual capacity but
                                           solely as Delaware Trustee
                                           under the Trust Agreement,

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

Date: __________ __, ____

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                      ZIONS FIRST NATIONAL BANK, not in its
                                      individual capacity but solely as Trustee,

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

Date: __________ __, ____

                                      B-1-3

<PAGE>

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Student Loan Asset-Backed Notes, Senior Class A-1 (the "Class
A-1 Notes"), which, together with the Issuer's Student Loan Asset-Backed Notes,
Senior Class A-2, A-3 and A-4 (together with the Class A-1 Notes, the "Class A
Notes") and the Issuer's Student Loan Asset-Backed Notes, Subordinate Class B-1
and Class B-2 (the "Class B Notes" and, together with the Class A Notes, the
"Notes"), are issued under and secured by 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 Trustee and
the Registered Owners. The Notes are subject to all terms of the Indenture.

        The Indenture provides that the Issuer may enter into a derivative
product (a "Derivative Product") between the Issuer and a derivative provider (a
"Counterparty"), as originally executed and as amended or supplemented, or other
interest rate hedge agreement between the Issuer and a Counterparty, as
originally executed and as amended or supplemented. Payments due to a
Counterparty from the Issuer pursuant to the applicable Derivative Product are
referred to herein as "Issuer Derivative Payments," and may be paid on a parity
with interest on any class of the Notes.

        The Class A-1 Notes are and will be secured by the Trust Estate pledged
as security therefor as provided in the Indenture. The Class A Notes are senior
to the Class B Notes as and to the extent provided in the Indenture. The Class A
Notes are, except for certain Termination Payments that are not Priority
Termination Payments, issued on a parity with any Derivative Products entered
into by the Issuer with a Counterparty, pursuant to which the Issuer will, from
time to time, owe Issuer Derivative Payments, and will, from time to time, be
owed Counterparty Payments.

        Principal of the Class A-1 Notes shall be payable on each Quarterly
Distribution Date in an amount equal to the portion of the Class A Principal
Distribution Amount allocable to this Note for such Quarterly Distribution Date.
"Quarterly Distribution Date" means the twenty-fifth (25th) day of each
February, May, August and November or, if such day is not a Business Day, the
immediately succeeding Business Day, commencing November 26, 2007.

        As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-1 Maturity Date.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
shall be due and payable on the date on which (a) an Event of Default shall have
occurred and be continuing and (b) either the Trustee or the Registered Owners
of Obligations representing not less than a majority of the Outstanding Amount
of the Highest Priority Obligations shall have declared the Notes to be
immediately due and payable in the manner provided in the Indenture.

        The Notes are subject to redemption from the proceeds of a sale of
Financed Eligible Loans in accordance with Section 10.03 or 10.04 of the
Indenture on any Quarterly Distribution Date on or after (a) the August 2025
Quarterly Distribution Date and (b) the Quarterly Distribution Date next
succeeding the date on which the then outstanding Pool Balance is 10% or less of
the Initial Pool Balance (all as defined in the Indenture), in whole only, at a
redemption price equal to the principal amount thereof being redeemed, plus
accrued interest, if any, due and payable on the Notes to such Distribution
Date.

                                      B-1-4

<PAGE>

        Interest on the Class A-1 Notes shall be payable on each Quarterly
Distribution Date on the principal amount outstanding of the Class A-1 Notes
until the principal amount thereof is paid in full, at a rate per annum equal to
the Class A-1 Rate. The "Class A-1 Rate" for each Interest Accrual Period, other
than the first Interest Accrual Period, shall be equal to the applicable
Three-Month LIBOR, plus 0.01%. The "Class A-1 Rate" for the first Interest
Accrual Period shall be determined by reference to the following formula:

        x + [3/31* (y-x)] plus 0.01%, as determined by the Administrator.

        where:

        x = Six-Month LIBOR, and

        y = Seven-Month LIBOR.

        Payments of interest on this Note on each Quarterly Distribution Date,
together with the installment of principal, if any, to the extent not in full
payment of this Note, shall be paid to the Person in whose name such Note is
registered on the Record Date by check mailed first-class, postage prepaid to
such Person's address as it appears on the records of the Trustee on such Record
Date, except that, unless definitive Notes have been issued pursuant to the
Indenture, 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 shall be made by wire transfer in immediately available funds to the
account designated by such nominee. If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Quarterly Distribution Date, then the Trustee
shall notify the Person in whose name a Note is registered at the close of
business on the Record Date preceding the Quarterly Distribution 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 or transmitted by facsimile
prior to such final Quarterly Distribution 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.

        As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered upon the records of
the Trustee upon surrender for transfer of any Note at the Principal Office of
the Trustee, duly endorsed for transfer or accompanied by an assignment duly
executed by the Registered Owner or his attorney duly authorized in writing, and
thereupon the Issuer shall execute and the Trustee shall authenticate and
deliver in the name of the transferee or transferees a new fully registered Note
or Notes of the same interest rate and for a like Class and aggregate principal
amount of the same maturity.

        As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as provided in the
Indenture. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

                                      B-1-5
<PAGE>

        Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan; or (b)(i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

        The Trustee shall require the payment by any Registered Owner requesting
exchange or transfer of any tax or other governmental charge required to be paid
with respect to such exchange or transfer. The applicant for any such transfer
or exchange may be required to pay all taxes and governmental charges in
connection with such transfer or exchange, other than exchanges pursuant to the
Indenture.

        The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Trustee and the Registered
Owners under the Indenture.

        The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note 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.

                                      B-1-6

<PAGE>

                                   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:
       -----------------------------

                                        By                                    *
                                           ------------------------------------
                                        Name
                                             ----------------------------------
                                        Title
                                              ---------------------------------

                                        Signature Guaranteed:

                                        By * *NOTICE: Signature(s) should
                                        be guaranteed by a guarantor
                                        institution participating in the
                                        Securities Transfer Agents
                                        Medallion Program or in such
                                        other guarantee program
                                        acceptable to the Trustee. The
                                        Assignor's signature to this
                                        assignment must correspond with
                                        the name as it appears upon the
                                        face of the within note in every
                                        particular without alteration or
                                        any change whatever.

                                      B-1-7
<PAGE>

                                   EXHIBIT B-2

                             FORM OF CLASS A-2 NOTE

        Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer (as
defined below) 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 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. THIS NOTE IS NOT GUARANTEED OR INSURED BY ANY
GOVERNMENTAL AGENCY.

                        NELNET STUDENT LOAN TRUST 2007-1
                         STUDENT LOAN ASSET-BACKED NOTES
                            SENIOR CLASS A-2 (LIBOR)

REGISTERED NO. R-__                                      REGISTERED $__________

   DATE OF ISSUANCE       MATURITY DATE      CUSIP NO.             ISIN NO.
     May 22, 2007        August 25, 2021    64032E AB 3          US64032EAB39

PRINCIPAL SUM:        **DOLLARS**
REGISTERED OWNER:     **CEDE & CO.**

        Nelnet Student Loan Trust 2007-1, a statutory trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, on each Quarterly Distribution Date the principal sum equal
to the portion of the Class A Principal Distribution Amount allocable to this
Note for such Quarterly Distribution Date, as described in the Indenture of
Trust, dated as of May 1, 2007, between the Issuer (by M&T Trust Company of
Delaware, in its capacity as Delaware Trustee) and Zions First National Bank, a
national banking association, as eligible lender trustee and indenture trustee
(the "Trustee") (capitalized terms used but not defined herein being defined in
Article I of the Indenture, which also contains rules as to usage that shall be
applicable herein); provided, however, that the entire unpaid principal amount
of this Note shall be due and payable on the Maturity Date specified above (the
"Class A-2 Maturity Date").

<PAGE>

        The Issuer shall pay interest on this Note at the rate per annum equal
to the Class A-2 Rate (as defined herein), on each Quarterly Distribution 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 Quarterly
Distribution Date or the Date of Issuance in the case of the first Quarterly
Distribution Date (after giving effect to all payments of principal made on the
preceding Quarterly Distribution Date), subject to certain limitations contained
in the Indenture. Interest on this Note shall accrue from and including the
preceding Quarterly Distribution Date (or, in the case of the first Interest
Accrual Period, the Date of Issuance) to but excluding the following Quarterly
Distribution Date (each an "Interest Accrual Period"). Interest shall be
calculated on the basis of the actual number of days elapsed in each Interest
Accrual Period divided by 360 and rounding the resultant figure to the fifth
decimal point. Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof.

        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
Trustee whose name appears below 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.

                                     B-2-2
<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                       NELNET STUDENT LOAN TRUST 2007-1

                                       By  M&T TRUST COMPANY OF
                                           DELAWARE, not in its
                                           individual capacity but
                                           solely as Delaware Trustee
                                           under the Trust Agreement,

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

Date: __________ __, ____

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                     ZIONS FIRST NATIONAL BANK, not in its
                                     individual capacity but solely as Trustee,

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

Date: __________ __, ____

                                     B-2-3

<PAGE>

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Student Loan Asset-Backed Notes, Senior Class A-2 (the "Class
A-2 Notes"), which, together with the Issuer's Student Loan Asset-Backed Notes,
Senior Class A-1, Class A-3 and Class A-4 (together with the Class A-2 Notes,
the "Class A Notes") and the Issuer's Student Loan Asset-Backed Notes,
Subordinate Class B-1 and Class B-2 (the "Class B Notes" and, together with the
Class A Notes, the "Notes"), are issued under and secured by 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 Trustee and the Registered Owners. The Notes are subject to all
terms of the Indenture.

        The Indenture provides that the Issuer may enter into a derivative
product (a "Derivative Product") between the Issuer and a derivative provider (a
"Counterparty"), as originally executed and as amended or supplemented, or other
interest rate hedge agreement between the Issuer and a Counterparty, as
originally executed and as amended or supplemented. Payments due to a
Counterparty from the Issuer pursuant to the applicable Derivative Product are
referred to herein as "Issuer Derivative Payments," and may be paid on a parity
with interest on any class of the Notes.

        The Class A-2 Notes are and will be secured by the Trust Estate pledged
as security therefor as provided in the Indenture. The Class A Notes are senior
to the Class B Notes as and to the extent provided in the Indenture. The Class A
Notes are, except for certain Termination Payments that are not Priority
Termination Payments, issued on a parity with any Derivative Products entered
into by the Issuer with a Counterparty, pursuant to which the Issuer will, from
time to time, owe Issuer Derivative Payments, and will, from time to time, be
owed Counterparty Payments.

        Principal of the Class A-2 Notes shall be payable on each Quarterly
Distribution Date in an amount equal to the portion of the Class A Principal
Distribution Amount allocable to this Note for such Quarterly Distribution Date.
"Quarterly Distribution Date" means the twenty-fifth (25th) day of each
February, May, August and November or, if such day is not a Business Day, the
immediately succeeding Business Day, commencing November 26, 2007.

        As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-2 Maturity Date.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
shall be due and payable on the date on which (a) an Event of Default shall have
occurred and be continuing and (b) either the Trustee or the Registered Owners
of Obligations representing not less than a majority of the Outstanding Amount
of the Highest Priority Obligations shall have declared the Notes to be
immediately due and payable in the manner provided in the Indenture.

        The Notes are subject to redemption from the proceeds of a sale of
Financed Eligible Loans in accordance with Section 10.03 or 10.04 of the
Indenture on any Quarterly Distribution Date on or after (a) the August 2025
Quarterly Distribution Date and (b) the Quarterly Distribution Date next
succeeding the date on which the then outstanding Pool Balance is 10% or less of
the Initial Pool Balance (all as defined in the Indenture), in whole only, at a
redemption price equal to the principal amount thereof being redeemed, plus
accrued interest, if any, due and payable on the Notes to such Distribution
Date.

                                     B-2-4
<PAGE>

        Interest on the Class A-2 Notes shall be payable on each Quarterly
Distribution Date on the principal amount outstanding of the Class A-2 Notes
until the principal amount thereof is paid in full, at a rate per annum equal to
the Class A-2 Rate. The "Class A-2 Rate" for each Interest Accrual Period, other
than the first Interest Accrual Period, shall be equal to the applicable
Three-Month LIBOR, plus 0.05%. The "Class A-2 Rate" for the first Interest
Accrual Period shall be determined by reference to the following formula:

        x + [3/31 * (y-x)] plus 0.05%, as determined by the Administrator.

        where:

        x = Six-Month LIBOR, and

        y = Seven-Month LIBOR.

        Payments of interest on this Note on each Quarterly Distribution Date,
together with the installment of principal, if any, to the extent not in full
payment of this Note, shall be paid to the Person in whose name such Note is
registered on the Record Date by check mailed first-class, postage prepaid to
such Person's address as it appears on the records of the Trustee on such Record
Date, except that, unless definitive Notes have been issued pursuant to the
Indenture, 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 shall be made by wire transfer in immediately available funds to the
account designated by such nominee. If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Quarterly Distribution Date, then the Trustee
shall notify the Person in whose name a Note is registered at the close of
business on the Record Date preceding the Quarterly Distribution 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 or transmitted by facsimile
prior to such final Quarterly Distribution 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.

        As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered upon the records of
the Trustee upon surrender for transfer of any Note at the Principal Office of
the Trustee, duly endorsed for transfer or accompanied by an assignment duly
executed by the Registered Owner or his attorney duly authorized in writing, and
thereupon the Issuer shall execute and the Trustee shall authenticate and
deliver in the name of the transferee or transferees a new fully registered Note
or Notes of the same interest rate and for a like Class and aggregate principal
amount of the same maturity.

        As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as provided in the
Indenture. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

                                     B-2-5
<PAGE>

        Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan; or (b)(i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

        The Trustee shall require the payment by any Registered Owner requesting
exchange or transfer of any tax or other governmental charge required to be paid
with respect to such exchange or transfer. The applicant for any such transfer
or exchange may be required to pay all taxes and governmental charges in
connection with such transfer or exchange, other than exchanges pursuant to the
Indenture.

        The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Trustee and the Registered
Owners under the Indenture.

        The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note 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.

                                     B-2-6
<PAGE>

                                   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:
       -----------------------------

                                        By                                    *
                                           ------------------------------------
                                        Name
                                             ----------------------------------
                                        Title
                                              ---------------------------------

                                        Signature Guaranteed:

                                        By * *NOTICE: Signature(s) should
                                        be guaranteed by a guarantor
                                        institution participating in the
                                        Securities Transfer Agents
                                        Medallion Program or in such
                                        other guarantee program
                                        acceptable to the Trustee. The
                                        Assignor's signature to this
                                        assignment must correspond with
                                        the name as it appears upon the
                                        face of the within note in every
                                        particular without alteration or
                                        any change whatever.

                                     B-2-7
<PAGE>

                                   EXHIBIT B-3

                             FORM OF CLASS A-3 NOTE

        Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer (as
defined below) 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 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. THIS NOTE IS NOT GUARANTEED OR INSURED BY ANY
GOVERNMENTAL AGENCY.

                        NELNET STUDENT LOAN TRUST 2007-1
                         STUDENT LOAN ASSET-BACKED NOTES
                            SENIOR CLASS A-3 (LIBOR)

REGISTERED NO. R-__                                     REGISTERED $__________

   DATE OF ISSUANCE        MATURITY DATE     CUSIP NO.            ISIN NO.
     May 22, 2007           May 27, 2025    64032E AC 1         US64032EAC12

PRINCIPAL SUM:        **DOLLARS**
REGISTERED OWNER:     **CEDE & CO.**

        Nelnet Student Loan Trust 2007-1, a statutory trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, on each Quarterly Distribution Date the principal sum equal
to the portion of the Class A Principal Distribution Amount allocable to this
Note for such Quarterly Distribution Date, as described in the Indenture of
Trust, dated as of May 1, 2007, between the Issuer (by M&T Trust Company of
Delaware, in its capacity as Delaware Trustee) and Zions First National Bank, a
national banking association, as eligible lender trustee and indenture trustee
(the "Trustee") (capitalized terms used but not defined herein being defined in
Article I of the Indenture, which also contains rules as to usage that shall be
applicable herein); provided, however, that the entire unpaid principal amount
of this Note shall be due and payable on the Maturity Date specified above (the
"Class A-3 Maturity Date").

<PAGE>

        The Issuer shall pay interest on this Note at the rate per annum equal
to the Class A-3 Rate (as defined herein), on each Quarterly Distribution 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 Quarterly
Distribution Date or the Date of Issuance in the case of the first Quarterly
Distribution Date (after giving effect to all payments of principal made on the
preceding Quarterly Distribution Date), subject to certain limitations contained
in the Indenture. Interest on this Note shall accrue from and including the
preceding Quarterly Distribution Date (or, in the case of the first Interest
Accrual Period, the Date of Issuance) to but excluding the following Quarterly
Distribution Date (each an "Interest Accrual Period"). Interest shall be
calculated on the basis of the actual number of days elapsed in each Interest
Accrual Period divided by 360 and rounding the resultant figure to the fifth
decimal point. Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof.

        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
Trustee whose name appears below 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.

                                      B-3-2
<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                       NELNET STUDENT LOAN TRUST 2007-1

                                       By  M&T TRUST COMPANY OF
                                           DELAWARE, not in its
                                           individual capacity but
                                           solely as Delaware Trustee
                                           under the Trust Agreement,

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

Date: __________ __, ____

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                      ZIONS FIRST NATIONAL BANK, not in its
                                      individual capacity but solely as Trustee,

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

Date: __________ __, ____

                                      B-3-3

<PAGE>

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Student Loan Asset-Backed Notes, Senior Class A-3 (the "Class
A-3 Notes"), which, together with the Issuer's Student Loan Asset-Backed Notes,
Senior Class A-1, Class A-2 and Class A-4 (together with the Class A-3 Notes,
the "Class A Notes") and the Issuer's Student Loan Asset-Backed Notes,
Subordinate Class B-1 and Class B-2 (the "Class B Notes" and, together with the
Class A Notes, the "Notes"), are issued under and secured by 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 Trustee and the Registered Owners. The Notes are subject to all
terms of the Indenture.

        The Indenture provides that the Issuer may enter into a derivative
product (a "Derivative Product") between the Issuer and a derivative provider (a
"Counterparty"), as originally executed and as amended or supplemented, or other
interest rate hedge agreement between the Issuer and a Counterparty, as
originally executed and as amended or supplemented. Payments due to a
Counterparty from the Issuer pursuant to the applicable Derivative Product are
referred to herein as "Issuer Derivative Payments," and may be paid on a parity
with interest on any class of the Notes.

        The Class A-3 Notes are and will be secured by the Trust Estate pledged
as security therefor as provided in the Indenture. The Class A Notes are senior
to the Class B Notes as and to the extent provided in the Indenture. The Class A
Notes are, except for certain Termination Payments that are not Priority
Termination Payments, issued on a parity with any Derivative Products entered
into by the Issuer with a Counterparty, pursuant to which the Issuer will, from
time to time, owe Issuer Derivative Payments, and will, from time to time, be
owed Counterparty Payments.

        Principal of the Class A-3 Notes shall be payable on each Quarterly
Distribution Date in an amount equal to the portion of the Class A Principal
Distribution Amount allocable to this Note for such Quarterly Distribution Date.
"Quarterly Distribution Date" means the twenty-fifth (25th) day of each
February, May, August and November or, if such day is not a Business Day, the
immediately succeeding Business Day, commencing November 26, 2007.

        As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-3 Maturity Date.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
shall be due and payable on the date on which (a) an Event of Default shall have
occurred and be continuing and (b) either the Trustee or the Registered Owners
of Obligations representing not less than a majority of the Outstanding Amount
of the Highest Priority Obligations shall have declared the Notes to be
immediately due and payable in the manner provided in the Indenture.

                                      B-3-4

<PAGE>

        The Notes are subject to redemption from the proceeds of a sale of
Financed Eligible Loans in accordance with Section 10.03 or 10.04 of the
Indenture on any Quarterly Distribution Date on or after (a) the August 2025
Quarterly Distribution Date and (b) the Quarterly Distribution Date next
succeeding the date on which the then outstanding Pool Balance is 10% or less of
the Initial Pool Balance (all as defined in the Indenture), in whole only, at a
redemption price equal to the principal amount thereof being redeemed, plus
accrued interest, if any, due and payable on the Notes to such Distribution
Date.

        Interest on the Class A-3 Notes shall be payable on each Quarterly
Distribution Date on the principal amount outstanding of the Class A-3 Notes
until the principal amount thereof is paid in full, at a rate per annum equal to
the Class A-3 Rate. The "Class A-3 Rate" for each Interest Accrual Period, other
than the first Interest Accrual Period, shall be equal to the applicable
Three-Month LIBOR, plus 0.07%. The "Class A-3 Rate" for the first Interest
Accrual Period shall be determined by reference to the following formula:

        x + [3/31 * (y-x)] plus 0.07%, as determined by the Administrator.

        where:

        x = Six-Month LIBOR, and

        y = Seven-Month LIBOR.

        Payments of interest on this Note on each Quarterly Distribution Date,
together with the installment of principal, if any, to the extent not in full
payment of this Note, shall be paid to the Person in whose name such Note is
registered on the Record Date by check mailed first-class, postage prepaid to
such Person's address as it appears on the records of the Trustee on such Record
Date, except that, unless definitive Notes have been issued pursuant to the
Indenture, 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 shall be made by wire transfer in immediately available funds to the
account designated by such nominee. If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Quarterly Distribution Date, then the Trustee
shall notify the Person in whose name a Note is registered at the close of
business on the Record Date preceding the Quarterly Distribution 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 or transmitted by facsimile
prior to such final Quarterly Distribution 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.

        As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered upon the records of
the Trustee upon surrender for transfer of any Note at the Principal Office of
the Trustee, duly endorsed for transfer or accompanied by an assignment duly
executed by the Registered Owner or his attorney duly authorized in writing, and
thereupon the Issuer shall execute and the Trustee shall authenticate and
deliver in the name of the transferee or transferees a new fully registered Note
or Notes of the same interest rate and for a like Class and aggregate principal
amount of the same maturity.

                                      B-3-5

<PAGE>

        As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as provided in the
Indenture. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

        Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan; or (b)(i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

        The Trustee shall require the payment by any Registered Owner requesting
exchange or transfer of any tax or other governmental charge required to be paid
with respect to such exchange or transfer. The applicant for any such transfer
or exchange may be required to pay all taxes and governmental charges in
connection with such transfer or exchange, other than exchanges pursuant to the
Indenture.

        The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Trustee and the Registered
Owners under the Indenture.

        The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note 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.

                                      B-3-6

<PAGE>

                                   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:
       -----------------------------

                                        By                                    *
                                           ------------------------------------
                                        Name
                                             ----------------------------------
                                        Title
                                              ---------------------------------

                                        Signature Guaranteed:

                                        By * *NOTICE: Signature(s) should
                                        be guaranteed by a guarantor
                                        institution participating in the
                                        Securities Transfer Agents
                                        Medallion Program or in such
                                        other guarantee program
                                        acceptable to the Trustee. The
                                        Assignor's signature to this
                                        assignment must correspond with
                                        the name as it appears upon the
                                        face of the within note in every
                                        particular without alteration or
                                        any change whatever.

                                      B-3-7

<PAGE>

                                   EXHIBIT B-4

                             FORM OF CLASS A-4 NOTE

        Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer (as
defined below) 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 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. THIS NOTE IS NOT GUARANTEED OR INSURED BY ANY
GOVERNMENTAL AGENCY.

                        NELNET STUDENT LOAN TRUST 2007-1
                         STUDENT LOAN ASSET-BACKED NOTES
                            SENIOR CLASS A-4 (LIBOR)

REGISTERED NO. R-__                                      REGISTERED $__________

   DATE OF ISSUANCE       MATURITY DATE     CUSIP NO.              ISIN NO.
     May 22, 2007        August 27, 2036   64032E AD 9           US64032EAD94

PRINCIPAL SUM:        **DOLLARS**
REGISTERED OWNER:     **CEDE & CO.**

        Nelnet Student Loan Trust 2007-1, a statutory trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, on each Quarterly Distribution Date the principal sum equal
to the portion of the Class A Principal Distribution Amount allocable to this
Note for such Quarterly Distribution Date, as described in the Indenture of
Trust, dated as of May 1, 2007, between the Issuer (by M&T Trust Company of
Delaware, in its capacity as Delaware Trustee) and Zions First National Bank, a
national banking association, as eligible lender trustee and indenture trustee
(the "Trustee") (capitalized terms used but not defined herein being defined in
Article I of the Indenture, which also contains rules as to usage that shall be
applicable herein); provided, however, that the entire unpaid principal amount
of this Note shall be due and payable on the Maturity Date specified above (the
"Class A-4 Maturity Date").

<PAGE>

        The Issuer shall pay interest on this Note at the rate per annum equal
to the Class A-4 Rate (as defined herein), on each Quarterly Distribution 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 Quarterly
Distribution Date or the Date of Issuance in the case of the first Quarterly
Distribution Date (after giving effect to all payments of principal made on the
preceding Quarterly Distribution Date), subject to certain limitations contained
in the Indenture. Interest on this Note shall accrue from and including the
preceding Quarterly Distribution Date (or, in the case of the first Interest
Accrual Period, the Date of Issuance) to but excluding the following Quarterly
Distribution Date (each an "Interest Accrual Period"). Interest shall be
calculated on the basis of the actual number of days elapsed in each Interest
Accrual Period divided by 360 and rounding the resultant figure to the fifth
decimal point. Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof.

        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
Trustee whose name appears below 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.

                                      B-4-2

<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                       NELNET STUDENT LOAN TRUST 2007-1

                                       By  M&T TRUST COMPANY OF
                                           DELAWARE, not in its
                                           individual capacity but
                                           solely as Delaware Trustee
                                           under the Trust Agreement,

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

Date: __________ __, ____

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                      ZIONS FIRST NATIONAL BANK, not in its
                                      individual capacity but solely as Trustee,

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

Date: __________ __, ____

                                      B-4-3

<PAGE>

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Student Loan Asset-Backed Notes, Senior Class A-4 (the "Class
A-4 Notes"), which, together with the Issuer's Student Loan Asset-Backed Notes,
Senior Class A-1, Class A-2 and Class A-3 (together with the Class A-4 Notes,
the "Class A Notes") and the Issuer's Student Loan Asset-Backed Notes,
Subordinate Class B-1 and Class B-2 (the "Class B Notes" and, together with the
Class A Notes, the "Notes"), are issued under and secured by 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 Trustee and the Registered Owners. The Notes are subject to all
terms of the Indenture.

        The Indenture provides that the Issuer may enter into a derivative
product (a "Derivative Product") between the Issuer and a derivative provider (a
"Counterparty"), as originally executed and as amended or supplemented, or other
interest rate hedge agreement between the Issuer and a Counterparty, as
originally executed and as amended or supplemented. Payments due to a
Counterparty from the Issuer pursuant to the applicable Derivative Product are
referred to herein as "Issuer Derivative Payments," and may be paid on a parity
with interest on any class of the Notes.

        The Class A-4 Notes are and will be secured by the Trust Estate pledged
as security therefor as provided in the Indenture. The Class A Notes are senior
to the Class B Notes as and to the extent provided in the Indenture. The Class A
Notes are, except for certain Termination Payments that are not Priority
Termination Payments, issued on a parity with any Derivative Products entered
into by the Issuer with a Counterparty, pursuant to which the Issuer will, from
time to time, owe Issuer Derivative Payments, and will, from time to time, be
owed Counterparty Payments.

        Principal of the Class A-4 Notes shall be payable on each Quarterly
Distribution Date in an amount equal to the portion of the Class A-4
Noteholder's Principal Distribution Amount allocable to this Note for such
Quarterly Distribution Date. "Quarterly Distribution Date" means the
twenty-fifth (25th) day of each February, May, August and November or, if such
day is not a Business Day, the immediately succeeding Business Day, commencing
November 26, 2007.

        As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-4 Maturity Date.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
shall be due and payable on the date on which (a) an Event of Default shall have
occurred and be continuing and (b) either the Trustee or the Registered Owners
of Obligations representing not less than a majority of the Outstanding Amount
of the Highest Priority Obligations shall have declared the Notes to be
immediately due and payable in the manner provided in the Indenture.

        The Notes are subject to redemption from the proceeds of a sale of
Financed Eligible Loans in accordance with Section 10.03 or 10.04 of the
Indenture on any Quarterly Distribution Date on or after (a) the August 2025
Quarterly Distribution Date and (b) the Quarterly Distribution Date next
succeeding the date on which the then outstanding Pool Balance is 10% or less of
the Initial Pool Balance (all as defined in the Indenture), in whole only, at a
redemption price equal to the principal amount thereof being redeemed, plus
accrued interest, if any, due and payable on the Notes to such Distribution
Date.

                                      B-4-4

<PAGE>

        Interest on the Class A-4 Notes shall be payable on each Quarterly
Distribution Date on the principal amount outstanding of the Class A-4 Notes
until the principal amount thereof is paid in full, at a rate per annum equal to
the Class A-4 Rate. The "Class A-4 Rate" for each Interest Accrual Period, other
than the first Interest Accrual Period, shall be equal to the applicable
Three-Month LIBOR, plus 0.11%. The "Class A-4 Rate" for the first Interest
Accrual Period shall be determined by reference to the following formula:

        x + [3/31 * (y-x)] plus 0.11%, as determined by the Administrator.

        where:

        x = Six-Month LIBOR, and

        y = Seven-Month LIBOR.

        Payments of interest on this Note on each Quarterly Distribution Date,
together with the installment of principal, if any, to the extent not in full
payment of this Note, shall be paid to the Person in whose name such Note is
registered on the Record Date by check mailed first-class, postage prepaid to
such Person's address as it appears on the records of the Trustee on such Record
Date, except that, unless definitive Notes have been issued pursuant to the
Indenture, 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 shall be made by wire transfer in immediately available funds to the
account designated by such nominee. If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Quarterly Distribution Date, then the Trustee
shall notify the Person in whose name a Note is registered at the close of
business on the Record Date preceding the Quarterly Distribution 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 or transmitted by facsimile
prior to such final Quarterly Distribution 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.

        As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered upon the records of
the Trustee upon surrender for transfer of any Note at the Principal Office of
the Trustee, duly endorsed for transfer or accompanied by an assignment duly
executed by the Registered Owner or his attorney duly authorized in writing, and
thereupon the Issuer shall execute and the Trustee shall authenticate and
deliver in the name of the transferee or transferees a new fully registered Note
or Notes of the same interest rate and for a like Class and aggregate principal
amount of the same maturity.

        As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as provided in the
Indenture. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

                                      B-4-5
<PAGE>

        Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan; or (b)(i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

        The Trustee shall require the payment by any Registered Owner requesting
exchange or transfer of any tax or other governmental charge required to be paid
with respect to such exchange or transfer. The applicant for any such transfer
or exchange may be required to pay all taxes and governmental charges in
connection with such transfer or exchange, other than exchanges pursuant to the
Indenture.

        The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Trustee and the Registered
Owners under the Indenture.

        The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note 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.

                                      B-4-6

<PAGE>

                                   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:
       -----------------------------

                                        By                                    *
                                           ------------------------------------
                                        Name
                                             ----------------------------------
                                        Title
                                              ---------------------------------

                                        Signature Guaranteed:

                                        By * *NOTICE: Signature(s) should
                                        be guaranteed by a guarantor
                                        institution participating in the
                                        Securities Transfer Agents
                                        Medallion Program or in such
                                        other guarantee program
                                        acceptable to the Trustee. The
                                        Assignor's signature to this
                                        assignment must correspond with
                                        the name as it appears upon the
                                        face of the within note in every
                                        particular without alteration or
                                        any change whatever.

                                      B-4-7

<PAGE>

                                   EXHIBIT B-5

                             FORM OF CLASS B-1 NOTE

        Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer (as
defined below) 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 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. THIS NOTE IS NOT GUARANTEED OR INSURED BY ANY
GOVERNMENTAL AGENCY.

                        NELNET STUDENT LOAN TRUST 2007-1
                         STUDENT LOAN ASSET-BACKED NOTES
                          SUBORDINATE CLASS B-1 (LIBOR)

REGISTERED NO. R-__                                       REGISTERED $__________

   DATE OF ISSUANCE        MATURITY DATE       CUSIP NO.            ISIN NO.
     May 22, 2007         August 25, 2037     64032E AH 0         US64032EAH09

PRINCIPAL SUM:        **DOLLARS**
REGISTERED OWNER:     **CEDE & CO.**

        Nelnet Student Loan Trust 2007-1, a statutory trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, on each Quarterly Distribution Date the principal sum equal
to the portion of the Class B Principal Distribution Amount allocable to this
Note for such Quarterly Distribution Date, as described in the Indenture of
Trust, dated as of May 1, 2007, between the Issuer (by M&T Trust Company of
Delaware, in its capacity as Delaware Trustee) and Zions First National Bank, a
national banking association, as eligible lender trustee and indenture trustee
(the "Trustee") (capitalized terms used but not defined herein being defined in
Article I of the Indenture, which also contains rules as to usage that shall be
applicable herein); provided, however, that the entire unpaid principal amount
of this Note shall be due and payable on the Maturity Date specified above (the
"Class B-1 Maturity Date").

<PAGE>

        The Issuer shall pay interest on this Note at the rate per annum equal
to the Class B-1 Rate (as defined on the reverse hereof), on each Quarterly
Distribution 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
Quarterly Distribution Date or the Date of Issuance in the case of the first
Quarterly Distribution Date (after giving effect to all payments of principal
made on the preceding Quarterly Distribution Date), subject to certain
limitations contained in the Indenture. Interest on this Note shall accrue from
and including the preceding Quarterly Distribution Date (or, in the case of the
first Interest Accrual Period, the Date of Issuance) to but excluding the
following Quarterly Distribution Date (each an "Interest Accrual Period").
Interest shall be calculated on the basis of the actual number of days elapsed
in each Interest Accrual Period divided by 360 and rounding the resultant figure
to the fifth decimal point. Such principal of and interest on this Note shall be
paid in the manner specified on the reverse hereof.

        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
Trustee whose name appears below 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.

                                      B-5-2

<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                       NELNET STUDENT LOAN TRUST 2007-1

                                       By  M&T TRUST COMPANY OF
                                           DELAWARE, not in its
                                           individual capacity but
                                           solely as Delaware Trustee
                                           under the Trust Agreement,

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

Date: __________ __, ____

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                      ZIONS FIRST NATIONAL BANK, not in its
                                      individual capacity but solely as Trustee,

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

Date: __________ __, ____

                                      B-5-3

<PAGE>

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Student Loan Asset-Backed Notes, Subordinate Class B-1 (the
"Class B-1 Notes"), which, together with the Issuer's Student Loan Asset-Backed
Notes, Subordinate Class B-2 (together with the Class B-1 Notes, the "Class B
Notes") and the Issuer's Student Loan Asset-Backed Notes, Senior Class A-1,
Class A-2, Class A-3 and Class A-4 (collectively, the "Class A Notes" and,
together with the Class B Notes, the "Notes"), are issued under and secured by
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 Trustee and the Registered Owners. The
Notes are subject to all terms of the Indenture.

        The Indenture provides that the Issuer may enter into a derivative
product (a "Derivative Product") between the Issuer and a derivative provider (a
"Counterparty"), as originally executed and as amended or supplemented, or other
interest rate hedge agreement between the Issuer and a Counterparty, as
originally executed and as amended or supplemented. Payments due to a
Counterparty from the Issuer pursuant to the applicable Derivative Product are
referred to herein as "Issuer Derivative Payments," and may be paid on a parity
with interest on any class of the Notes.

        The Class B-1 Notes are and will be secured by the Trust Estate pledged
as security therefor as provided in the Indenture. The Class A Notes are senior
to the Class B Notes as and to the extent provided in the Indenture. The Class A
Notes are, except for certain Termination Payments that are not Priority
Termination Payments, issued on a parity with any Derivative Products entered
into by the Issuer with a Counterparty, pursuant to which the Issuer will, from
time to time, owe Issuer Derivative Payments, and will, from time to time, be
owed Counterparty Payments.

        Principal of the Class B-1 Notes shall be payable on each Quarterly
Distribution Date in an amount equal to the portion of the Class B Principal
Distribution Amount allocable to this Note for such Quarterly Distribution Date.
"Quarterly Distribution Date" means the twenty-fifth (25th) day of each
February, May, August and November or, if such day is not a Business Day, the
immediately succeeding Business Day, commencing November 26, 2007.

        As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class B-1 Maturity Date.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
shall be due and payable on the date on which (a) an Event of Default shall have
occurred and be continuing and (b) either the Trustee or the Registered Owners
of Obligations representing not less than a majority of the Outstanding Amount
of the Highest Priority Obligations shall have declared the Notes to be
immediately due and payable in the manner provided in the Indenture.

        The Notes are subject to redemption from the proceeds of a sale of
Financed Eligible Loans in accordance with Section 10.03 or 10.04 of the
Indenture on any Quarterly Distribution Date on or after (a) the August 2025
Quarterly Distribution Date and (b) the Quarterly Distribution Date next
succeeding the date on which the then outstanding Pool Balance is 10% or less of
the Initial Pool Balance (all as defined in the Indenture), in whole only, at a
redemption price equal to the principal amount thereof being redeemed, plus
accrued interest, if any, due and payable on the Notes to such Distribution
Date.

                                      B-5-4

<PAGE>

        Interest on the Class B-1 Notes shall be payable on each Quarterly
Distribution Date on the principal amount outstanding of the Class B-1 Notes
until the principal amount thereof is paid in full, at a rate per annum equal to
the Class B-1 Rate. The "Class B-1 Rate" for each Interest Accrual Period, other
than the first Interest Accrual Period, shall be equal to the applicable
Three-Month LIBOR, plus 0.15%. The "Class B-1 Rate" for the first Interest
Accrual Period shall be determined by reference to the following formula:

        x + [3/31* (y-x)] plus 0.15%, as determined by the Administrator.

        where:

        x = Six-Month LIBOR, and

        y = Seven-Month LIBOR.

        Payments of interest on this Note on each Quarterly Distribution Date,
together with the installment of principal, if any, to the extent not in full
payment of this Note, shall be paid to the Person in whose name such Note is
registered on the Record Date by check mailed first-class, postage prepaid to
such Person's address as it appears on the records of the Trustee on such Record
Date, except that, unless definitive Notes have been issued pursuant to the
Indenture, 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 shall be made by wire transfer in immediately available funds to the
account designated by such nominee. If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Quarterly Distribution Date, then the Trustee
shall notify the Person in whose name a Note is registered at the close of
business on the Record Date preceding the Quarterly Distribution 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 or transmitted by facsimile
prior to such final Quarterly Distribution 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.

        As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered upon the records of
the Trustee upon surrender for transfer of any Note at the Principal Office of
the Trustee, duly endorsed for transfer or accompanied by an assignment duly
executed by the Registered Owner or his attorney duly authorized in writing, and
thereupon the Issuer shall execute and the Trustee shall authenticate and
deliver in the name of the transferee or transferees a new fully registered Note
or Notes of the same interest rate and for a like Class and aggregate principal
amount of the same maturity.

        As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as provided in the
Indenture. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

                                      B-5-5

<PAGE>

        Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan; or (b)(i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

        The Trustee shall require the payment by any Registered Owner requesting
exchange or transfer of any tax or other governmental charge required to be paid
with respect to such exchange or transfer. The applicant for any such transfer
or exchange may be required to pay all taxes and governmental charges in
connection with such transfer or exchange, other than exchanges pursuant to the
Indenture.

        The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Trustee and the Registered
Owners under the Indenture.

        The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note 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.

                                      B-5-6

<PAGE>

                                   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:
       -----------------------------

                                        By                                    *
                                           ------------------------------------
                                        Name
                                             ----------------------------------
                                        Title
                                              ---------------------------------

                                        Signature Guaranteed:

                                        By * *NOTICE: Signature(s) should
                                        be guaranteed by a guarantor
                                        institution participating in the
                                        Securities Transfer Agents
                                        Medallion Program or in such
                                        other guarantee program
                                        acceptable to the Trustee. The
                                        Assignor's signature to this
                                        assignment must correspond with
                                        the name as it appears upon the
                                        face of the within note in every
                                        particular without alteration or
                                        any change whatever.

                                      B-5-7

<PAGE>

                                   EXHIBIT B-6

                             FORM OF CLASS B-2 NOTE

        Unless this Note is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Issuer (as
defined below) 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 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. THIS NOTE IS NOT GUARANTEED OR INSURED BY ANY
GOVERNMENTAL AGENCY.

                        NELNET STUDENT LOAN TRUST 2007-1
                         STUDENT LOAN ASSET-BACKED NOTES
                         SUBORDINATE CLASS B-2 (AUCTION)

REGISTERED NO. R-__                                       REGISTERED $__________

   DATE OF ISSUANCE        MATURITY DATE      CUSIP NO.             ISIN NO.
     May 22, 2007         August 25, 2037    64032E AJ 6          US64032EAJ64

PRINCIPAL SUM:        **DOLLARS**
REGISTERED OWNER:     **CEDE & CO.**

        Nelnet Student Loan Trust 2007-1, a statutory trust organized and
existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, on each Quarterly Distribution Date the principal sum equal
to the portion of the Class B Principal Distribution Amount allocable to this
Note for such Auction Rate Distribution Date, as described in the Indenture of
Trust, dated as of May 1, 2007, between the Issuer (by M&T Trust Company of
Delaware, in its capacity as Delaware Trustee) and Zions First National Bank, a
national banking association, as eligible lender trustee and indenture trustee
(the "Trustee") (capitalized terms used but not defined herein being defined in
Article I of the Indenture, which also contains rules as to usage that shall be
applicable herein); provided, however, that the entire unpaid principal amount
of this Note shall be due and payable on the Maturity Date specified above (the
"Class B-2 Maturity Date").

<PAGE>

        The Issuer shall pay interest on this Note at the rate per annum equal
to the Class B-2 Rate (as defined on the reverse hereof), on each Auction Rate
Distribution Date for the Class B-2 Notes until the principal of this Note is
paid or made available for payment, on the principal amount of this Note
outstanding on the preceding Auction Rate Distribution Date or the Date of
Issuance in the case of the first Auction Rate Distribution Date (after giving
effect to all payments of principal made on the preceding Auction Rate
Distribution Date), subject to certain limitations contained in the Indenture.
Interest on this Note shall accrue, unless changed as provided in the Indenture
in Appendix A thereto, initially during the period commencing on the Date of
Issuance through and not including the Initial Rate Adjustment Date for the
Class B-2 Notes, and thereafter, each successive period of generally 28 days,
commencing on the first Business Day following the applicable Auction Date, and
ending on and including the applicable Auction Date (unless such date is not
followed by a Business Day, in which case the next succeeding day that is
followed by a Business Day) and, if the Auction Periods are changed as provided
in the Indenture, each period commencing on an Auction Rate Distribution Date
and ending on but excluding the succeeding Auction Rate Distribution Date (each
an "Interest Accrual Period" or "Auction Period"). Interest shall be calculated
on the basis of the actual number of days elapsed in each Interest Accrual
Period divided by 360. Such principal of and interest on this Note shall be paid
in the manner specified on the reverse hereof.

        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
Trustee whose name appears below 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.

                                      B-6-2

<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed, manually or in facsimile, as of the date set forth below.

                                       NELNET STUDENT LOAN TRUST 2007-1

                                       By  M&T TRUST COMPANY OF
                                           DELAWARE, not in its
                                           individual capacity but
                                           solely as Delaware Trustee
                                           under the Trust Agreement,

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

Date: __________ __, ____

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

                                      ZIONS FIRST NATIONAL BANK, not in its
                                      individual capacity but solely as Trustee,

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

Date: __________ __, ____

                                      B-6-3

<PAGE>

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Student Loan Asset-Backed Notes, Subordinate Class B-2 (the
"Class B-2 Notes"), which, together with the Issuer's Student Loan Asset-Backed
Notes, Subordinate Class B-1 (together with the Class B-2 Notes, the "Class B
Notes") and the Issuer's Student Loan Asset-Backed Notes, Senior Class A-1,
Class A-2, Class A-3 and Class A-4 (collectively, the "Class A Notes" and,
together with the Class B Notes, the "Notes"), are issued under and secured by
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 Trustee and the Registered Owners. The
Notes are subject to all terms of the Indenture.

        The Indenture provides that the Issuer may enter into a derivative
product (a "Derivative Product") between the Issuer and a derivative provider (a
"Counterparty"), as originally executed and as amended or supplemented, or other
interest rate hedge agreement between the Issuer and a Counterparty, as
originally executed and as amended or supplemented. Payments due to a
Counterparty from the Issuer pursuant to the applicable Derivative Product are
referred to herein as "Issuer Derivative Payments," and may be paid on a parity
with interest on any class of the Notes.

        The Class B-2 Notes are and will be secured by the Trust Estate pledged
as security therefor as provided in the Indenture. The Class A Notes are senior
to the Class B Notes as and to the extent provided in the Indenture. The Class A
Notes are, except for certain Termination Payments that are not Priority
Termination Payments, issued on a parity with any Derivative Products entered
into by the Issuer with a Counterparty, pursuant to which the Issuer will, from
time to time, owe Issuer Derivative Payments, and will, from time to time, be
owed Counterparty Payments.

        Principal of the Class B-2 Notes shall be payable on each Auction Rate
Distribution Date in an amount equal to the portion of the Class B-2
Noteholder's Principal Distribution Amount allocable to this Note for such
Auction Rate Distribution Date. "Auction Rate Distribution Date" means for the
Class B-2 Notes, the Business Day immediately following the Initial Period and
each related Auction Period thereafter; provided, however, that if the duration
of such Auction Period exceeds 90 days, then the Class B-2 Notes will have
Auction Rate Distribution Dates on (i) the twenty-fifth (25th) day of each
February, May, August and November occurring during such Auction Period (or, if
such day is not a Business Day, the immediately succeeding Business Day), and
(ii) the first Business Day immediately following the end of such Auction
Period.

        As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class B-2 Maturity Date.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
shall be due and payable on the date on which (a) an Event of Default shall have
occurred and be continuing and (b) either the Trustee or the Registered Owners
of Obligations representing not less than a majority of the Outstanding Amount
of the Highest Priority Obligations shall have declared the Notes to be
immediately due and payable in the manner provided in the Indenture.

        The Notes are subject to redemption from the proceeds of a sale of
Financed Eligible Loans in accordance with Section 10.03 or 10.04 of the
Indenture on any Quarterly Distribution Date on or after (a) the August 2025
Quarterly Distribution Date and (b) the Quarterly Distribution Date next
succeeding the date on which the then outstanding Pool Balance is 10% or less of
the Initial Pool Balance (all as defined in the Indenture), in whole only, at a
redemption price equal to the principal amount thereof being redeemed, plus
accrued interest, if any, due and payable on the Notes to such Distribution
Date.
                                      B-6-4

<PAGE>

        Interest on the Class B-2 Notes shall be payable on each Auction Rate
Distribution Date on the principal amount outstanding of the Class B-2 Notes
until the principal amount thereof is paid in full, at a rate per annum equal to
the Class A B-2 Rate. The "Class B-2 Rate" for each Interest Accrual Period,
other than the first Interest Accrual Period, shall be equal to the Auction Note
Interest Rate for the Class B-2 Notes for such Interest Accrual Period, and, for
the first Interest Accrual Period, the Initial Rate for such Class. The Auction
Note Interest Rate is determined for each Interest Accrual Period in accordance
with the Auction Procedures described in Appendix A to the Indenture. The
Initial Rate for the Class B-2 Notes is the rate selected by the Underwriters
and specified in the Indenture for such Class of Notes. Under certain
circumstances, the Class B-2 Notes may be entitled to payment of certain
Carry-Over Amounts for such Class, as described in Appendix A to the Indenture.
Payment of such Carry-Over Amounts is subordinated to the payment of principal
and interest on the Notes, and to payment of other amounts owed by the Issuer,
as described in the Indenture.

        Payments of interest on this Note on each Auction Rate Distribution
Date, together with the installment of principal, if any, to the extent not in
full payment of this Note, shall be paid to the Person in whose name such Note
is registered on the Record Date by check mailed first-class, postage prepaid to
such Person's address as it appears on the records of the Trustee on such Record
Date, except that, unless definitive Notes have been issued pursuant to the
Indenture, 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 shall be made by wire transfer in immediately available funds to the
account designated by such nominee. If funds are expected to be available, as
provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on an Auction Rate Distribution Date, then the
Trustee shall notify the Person in whose name a Note is registered at the close
of business on the Record Date preceding the Auction Rate Distribution 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 or transmitted by
facsimile prior to such final Auction Rate Distribution 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.

        As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered upon the records of
the Trustee upon surrender for transfer of any Note at the Principal Office of
the Trustee, duly endorsed for transfer or accompanied by an assignment duly
executed by the Registered Owner or his attorney duly authorized in writing, and
thereupon the Issuer shall execute and the Trustee shall authenticate and
deliver in the name of the transferee or transferees a new fully registered Note
or Notes of the same interest rate and for a like Class and aggregate principal
amount of the same maturity.

                                      B-6-5

<PAGE>

        As to any Note, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of either principal or interest on any fully registered Note shall be
made only to or upon the written order of the Registered Owner thereof or his
legal representative but such registration may be changed as provided in the
Indenture. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum or sums paid.

        Each Registered Owner and each transferee of a Note shall be deemed to
represent and warrant that either (a) it is not acquiring the Note directly or
indirectly for, or on behalf of, an ERISA plan or any entity whose underlying
assets are deemed to be plan assets of such ERISA plan; or (b)(i) the
acquisition and holding of the Notes will not result in a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or similar
law and (ii) if the Notes are subsequently deemed to be "plan assets" pursuant
to the regulations set forth at 29 C.F.R. ss. 2510.3-101, it will promptly
dispose of the Notes.

        The Trustee shall require the payment by any Registered Owner requesting
exchange or transfer of any tax or other governmental charge required to be paid
with respect to such exchange or transfer. The applicant for any such transfer
or exchange may be required to pay all taxes and governmental charges in
connection with such transfer or exchange, other than exchanges pursuant to the
Indenture.

        The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Trustee and the Registered
Owners under the Indenture.

        The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note 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.

                                      B-6-6

<PAGE>

                                   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:
       -----------------------------

                                        By                                    *
                                           ------------------------------------
                                        Name
                                             ----------------------------------
                                        Title
                                              ---------------------------------

                                        Signature Guaranteed:

                                        By * *NOTICE: Signature(s) should
                                        be guaranteed by a guarantor
                                        institution participating in the
                                        Securities Transfer Agents
                                        Medallion Program or in such
                                        other guarantee program
                                        acceptable to the Trustee. The
                                        Assignor's signature to this
                                        assignment must correspond with
                                        the name as it appears upon the
                                        face of the within note in every
                                        particular without alteration or
                                        any change whatever.

                                      B-6-7

<PAGE>

                                    EXHIBIT C

                         FORM OF ADMINISTRATOR'S MONTHLY
                       SERVICING PAYMENT DATE CERTIFICATE

        This Administrator's Monthly Servicing Payment Date Certificate (the
"Certificate") is being provided by National Education Loan Network, Inc., as
Administrator (the "Administrator") to Nelnet Student Loan Trust 2007-1 (the
"Issuer") pursuant to Section 5.04(b) of the Indenture of Trust, dated as of May
1, 2007 (the "Indenture"), among the Issuer and Zions First National Bank, as
eligible lender trustee, and Zions First National Bank, as trustee (the
"Trustee"). All capitalized terms used in this Certificate and not otherwise
defined shall have the same meanings as assigned to such terms in the Indenture.

        Pursuant to this Certificate, the Administrator hereby directs the
Trustee to distribute to the Master Servicer, by 3:00 p.m. (New York time) on
__________ __, ____ (the "Monthly Servicing Payment Date"), from and to the
extent of the Available Funds on deposit in the Collection Fund, $__________
Servicing Fee due with respect to the preceding calendar month.

        The Available Funds on this Monthly Servicing Payment Date are equal to
$__________.

        The Administrator hereby certifies that the information herein is true
and accurate in all material respects, is in compliance with the provisions of
the Indenture and that the Trustee may conclusively rely on this Certificate
with no further duty to examine or determine the information contained herein.

        IN WITNESS WHEREOF, the Administrator has caused this Certificate to be
duly executed and delivered as of the date written below.

                                       NATIONAL EDUCATION LOAN NETWORK, INC., as
                                       Administrator

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

[DATE]

<PAGE>

                                    EXHIBIT D

                             FORM OF ADMINISTRATOR'S
                          DISTRIBUTION DATE CERTIFICATE

        This Administrator's Distribution Date Certificate (the "Certificate")
is being provided by National Education Loan Network, Inc., as Administrator
(the "Administrator") to Nelnet Student Loan Trust 2007-1 (the "Issuer")
pursuant to Section 5.04(c) and (d) of the Indenture of Trust, dated as of May
1, 2007 (the "Indenture"), among the Issuer, Zions First National Bank, as
eligible lender trustee, and Zions First National Bank, as trustee (the
"Trustee"). All capitalized terms used in this Certificate and not otherwise
defined shall have the same meanings as assigned to such terms in the Indenture.

AUCTION RATE DISTRIBUTION DATE

        Pursuant to this Certificate, the Administrator hereby directs the
Trustee to make the following deposits and distributions to the Persons or to
the account specified below by 3:00 p.m. (New York time) on __________ __, _____
(the "Auction Rate Distribution Date"), to the extent of the amounts retained in
the Collection Fund pursuant to Section 5.04(d)(iii), (iv) and (vi) of the
Indenture for such purposes and, if necessary, (x) the amount transferred from
the Reserve Fund pursuant to Section 5.05(b), (c) and (d) of the Indenture, (y)
the amount transferred from the Acquisition Fund pursuant to Section 5.02 of the
Indenture and (z) the amount transferred from the Capitalized Interest Fund
pursuant to Section 5.03 of the Indenture. The Trustee shall retain the
following amounts and made the following distributions in the following order of
priority, and the Trustee shall comply with such instructions:
<TABLE>
<CAPTION>
<S>                                                                             <C>

(i)     (a)The Auction Agent Fee to the Auction Agent, and                      $
                                                                                ----------
        (b)The Broker-Dealer Fees to the Broker-Dealers,                        $
                                                                                ----------
        payments described in (a) through (b) above to be made ratably,
        without preference or priority of any kind, due on the Auction
        Rate Distribution Date in each case with such fees remaining
        unpaid from prior Distribution Dates; and

(ii)    The Class B-2 Noteholders' Interest Distribution Amount to the          $
        Class B-2 Noteholders.                                                  ----------

        Total Distributions on the Auction Rate Distribution Date               $
                                                                                ----------
        Amounts retained in the Collection Fund pursuant to Section 5.04(d),
        (iv) and (vi) of the Indenture.                                         $
                                                                                ==========
                                      D-1

<PAGE>

        Pursuant to this Certificate, the Administrator hereby directs the
Trustee to make the following deposits and distributions to the Persons or to
the account specified below by 3:00 p.m. (New York time) on the Auction Rate
Distribution Date, from amounts set aside or retained in the Collection Fund
pursuant to Section 5.04(d)(viii) and (xi) of the Indenture for such payments,
and the Trustee shall comply with such instructions:

(i)     The Class B-2 Noteholders' Principal Distribution Amount to the         $
        Class B-2 Noteholders, and                                              ----------

(ii)    The Class B-2 Carry-Over Amount to the Class B-2 Noteholders,           $
                                                                                ----------

QUARTERLY DISTRIBUTION DATE

        Pursuant to this Certificate, the Administrator hereby directs the
Trustee to make the following deposits and distributions to the Persons or to
the account specified below by 3:00 p.m. (New York time) on __________ __, _____
(the "Quarterly Distribution Date"), to the extent of (v) the amount, if any,
transferred from the Department Rebate Fund pursuant to Section 5.06 of the
Indenture, (w) the amount of Available Funds received during the immediately
preceding Collection Period in the Collection Fund (or, if necessary, other
Available Funds on deposit in the Collection Fund as provided in Section 5.04(d)
of the Indenture), (x) the amount transferred from the Reserve Fund pursuant to
Section 5.05(b), (c) and (d) of the Indenture, (y) the amount transferred from
the Acquisition Fund pursuant to Section 5.02 of the Indenture and (z) the
amount transferred from the Capitalized Interest Fund pursuant to Section 5.03
of the Indenture. The Trustee shall make the following deposits and
distributions in the following order of priority, and the Trustee shall comply
with such instructions:

(i)     (a) The Servicing Fee to the Master Servicer,                           $
                                                                                ----------
        (b) The Trustee Fee to the Trustee,                                     $
                                                                                ----------
        (c) The Auction Agent Fee to the Auction Agent (if applicable),         $
                                                                                ----------
        (d) The Broker-Dealer Fee to the Broker-Dealer (if applicable), and     $
                                                                                ----------
        (e) The Delaware Trustee Fee to the Delaware Trustee,                   $
                                                                                ----------
        payments described in (a) through (e) above to be made ratably,
        without preference or priority of any kind, due on the
        Quarterly Distribution Date in each case with such fees remaining
        unpaid from prior Distribution Dates (or as applicable from
        prior Monthly Service Payment Dates);

(ii)    (a) The Administration Fee to the Administrator                         $
                                                                                ----------
        (b) Any unpaid Administration Fees, if any, from prior Quarterly
            Distribution Dates to the Administrator due on the Quarterly        $
            Distribution Date;                                                  ----------

                                      D-2

<PAGE>

(iii)   (a) The Class A-1 Noteholders' Interest Distribution Amount to the      $
            Class A-1 Noteholders,                                              ----------
            The Class A-2 Noteholders' Interest Distribution Amount to the      $
            Class A-2 Noteholders,                                              ----------
            The Class A-3 Noteholders' Interest Distribution Amount to the      $
            Class A-3 Noteholders, and                                          ----------
            The Class A-4 Noteholders' Interest Distribution Amount to the      $
            Class A-4 Noteholders, and                                          ----------
        (b) Issuer Derivative Payments (excluding Termination Payments other
            than Priority Termination Payments) to the Counterparties, pro
            rata, without preference or priority of any kind, according to the  $
            amounts payable to each such party;                                 ----------
(iv)    (a) The Class B-1 Noteholders' Interest Distribution Amount to the      $
            Class B-1 Noteholders, and                                          ----------
            The Class B-2 Noteholders' Interest Distribution Amount to the      $
            Class B-2 Noteholders; and                                          ----------
        (b) The Class B-2 Noteholders' Interest Distribution Amount accrued to
            such Quarterly Distribution Date to be retained in the Collection   $
            Fund, and                                                           ----------

(v)        An amount equal to the unpaid interest accrued on the Financed
           Student Loans subsequent to the Cutoff Date but prior to the Date
           of Issuance, until such amount has been paid in full, to the         $
           Depositor;                                                           ----------

(vi)    (a) The Broker-Dealer Fees and Auction Agent Fees estimated to be       $
            payable prior to the next Quarterly Distribution Date, and          ----------
        (b) The Class B-2 Noteholders' Interest Distribution Amount estimated
            to be payable prior to the next Quarterly Distribution Date (less   $
            the amount, if any, retained pursuant to paragraph (iv) above),     ----------
(vii)   (a) The Class A Principal Distribution Amount to the Class A-1          $
            Noteholders (until paid in full),                                   ----------
        (b) The Class A Principal Distribution Amount to the Class A-2          $
            Noteholders (until paid in full),                                   ----------
        (c) The Class A Principal Distribution Amount to the Class A-3          $
            Noteholders (until paid in full), and                               ----------
        (d) The Class A Principal Distribution Amount to the Class A-4          $
            Noteholders (until paid in full),                                   ----------
(viii)  (a) On and after the Stepdown Date (no Trigger Event is in effect),
            the Class B Principal Distribution Amount to the Class B-1          $
            Noteholders  (until paid in full), and                              ----------
        (b)On and after the Stepdown Date (no Trigger Event is in effect), the
           Class B Principal Distribution Amount to the Class B-2 Noteholders  $
           (until paid in full);                                                ----------
(ix)    Amounts to be deposited to the Reserve Fund necessary to reinstate the  $
        balance of the Reserve Fund up to the Specified Reserve Fund Balance;   ----------
(x)     Amounts due to the Master Servicer representing the aggregate unpaid    $
        amount of the Carryover Servicing Fee;                                  ----------

                                      D-3

<PAGE>

(xi)    Amounts due to the Class B-2 Noteholders, representing any accrued and  $
        unpaid Carry-Over Amounts then due and payable                          ----------

(xii)   Amounts due to the Counterparties, pro rata, without preference or
        priority (representing any accrued and unpaid Termination Payments due  $
        under any Derivative Product Payments);                                 ----------

(xiii)  If the Financed Eligible Loans have not been sold pursuant to  Section
        10.03 or 10.04 of the Indenture, amounts payable to the  Noteholders as
        an accelerated payment of principal balance on the Notes pursuant to    $
        Section 5.04(d)(vi) and (vii) of the Indenture; and                     ----------

(xiv)   Any remaining Available Revenues to the Issuer.                         $
                                                                                ----------
        Total Distributions                                                     $
                                                                                ----------

        The Available Funds from the immediately preceding Collection Period    $
        on this Quarterly Distribution Date.                                    ----------

        If required, other Available Funds on deposit in the Collection Fund.  $
                                                                                ----------

        If required, Issuer, Master Servicer or Subservicer contributions for   $
        Borrower Incentive Program deficiencies.                                ----------

        The Parity Ratio as of such Quarterly Distribution Date.                      ____%

        Specified Reserve Fund Balance for such Quarterly Distribution Date.    $
                                                                                ----------

        Pool Balance for such Quarterly Distribution Date.                      $
                                                                                ----------
</TABLE>

FUND TRANSFERS

        Pursuant to this Certificate, if applicable, the Administrator further
hereby directs the Trustee to withdraw from:

               (a) the Acquisition Fund for deposit to the Collection Fund (i)
        an amount equal to $__________, representing the amount of insufficient
        Available Funds in the Collection Fund to make the transfers required by
        Sections 5.04(b) (other than transfers to fund "add-on consolidation
        loans" or repurchase student loans from the Master Servicer, any
        Subservicer or any Guaranty Agency), 5.04(c)(i) and (ii) and 5.04(d)(i)
        through (vi) and (ix) of the Indenture and (ii) an amount equal to
        $__________, representing the remaining amount on deposit in the
        Acquisition Fund on the Distribution Date immediately following the
        one-year anniversary of the Date of Issuance;

               (b) the Capitalized Interest Fund for deposit to the Collection
        Fund (i) an amount equal to $__________, representing the amount of
        insufficient Available Funds in the Collection Fund to make the
        transfers required by Sections 5.04(b) (other than transfers to fund
        "add on consolidation loans" or repurchase student loans from the Master
        Servicer, any Subservicer or any Guaranty Agency), 5.04(c)(i) and (ii)
        and 5.04(d)(i) through (vi) and (ix) of the Indenture; and

                                      D-4

<PAGE>

               (c) the Reserve Fund for deposit to the Collection Fund to the
        extent moneys are not available to make the transfers from the
        Capitalized Interest Fund, (i) an amount equal to $__________,
        representing the amount of insufficient Available Funds in the
        Collection Fund to make the transfers required by Sections 5.04(b)
        (other than transfers to fund "add-on consolidation loans" or repurchase
        student loans from the Master Servicer, any Subservicer or any Guaranty
        Agency), 5.04(c)(i) and (ii) and 5.04(d)(i) through 5.04(c)(vi) of the
        Indenture, and (ii) an amount equal to $__________, representing the
        amount on deposit in the Reserve Fund in excess of the Specified Reserve
        Fund Balance.

        The Administrator hereby certifies that the information herein is true
and accurate in all material respects, is in compliance with the provisions of
the Indenture and that the Trustee may conclusively rely on this Certificate
with no further duty to examine or determine the information contained herein.

        IN WITNESS WHEREOF, the Administrator has caused this Certificate to be
duly executed and delivered as of the date written below.

                                       NATIONAL EDUCATION LOAN NETWORK, INC., as
                                       Administrator

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

                                      D-5

<PAGE>

                                    EXHIBIT E

                           REPORT TO REGISTERED OWNERS

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