Document:

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                                                                     Exhibit 4.3

                                   INDENTURE

                                    between

                         BAY VIEW ____-__ OWNER TRUST

                                   as Issuer

                                      and

                              ___________________

                             as Indenture Trustee

                           Dated as of ____________
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                               TABLE OF CONTENTS

                                                                           Page

                                   ARTICLE I

                  DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.01.  Definitions...............................................1
     SECTION 1.02.  Incorporation by Reference of Trust Indenture Act........10

                                  ARTICLE II

                                   THE NOTES

     SECTION 2.01.  Form.....................................................11
     SECTION 2.02.  Execution, Authentication and Delivery...................11
     SECTION 2.03.  Temporary Notes..........................................12
     SECTION 2.04.  Registration; Registration of Transfer and Exchange......12
     SECTION 2.05.  Mutilated, Destroyed, Lost or Stolen Notes...............13
     SECTION 2.06.  Intentionally Blank......................................14
     SECTION 2.07.  Payment of Principal and Interest; Defaulted Interest....14
     SECTION 2.08.  Cancellation.............................................15
     SECTION 2.09.  Book-Entry Notes.........................................15
     SECTION 2.10.  Notices to Clearing Agency...............................15
     SECTION 2.11.  Definitive Notes.........................................16
     SECTION 2.12.  Release of Pledged Assets................................16
     SECTION 2.13.  Tax Treatment............................................16
     SECTION 2.14.  ERISA....................................................16

                                  ARTICLE III

                                   COVENANTS

     SECTION 3.01.  Payment of Principal and Interest........................16
     SECTION 3.02.  Maintenance of Office or Agency..........................16
     SECTION 3.03.  Money for Payments to be Held in Trust...................17
     SECTION 3.04.  Existence................................................18
     SECTION 3.05.  Protection of Trust Estate...............................18
     SECTION 3.06.  Opinions as to Pledged Assets............................19
     SECTION 3.07.  Performance of Obligations; Servicing of Receivables.....19
     SECTION 3.08.  Negative Covenants.......................................20
     SECTION 3.09.  Annual Statement as to Compliance........................20
     SECTION 3.10.  Issuer May Consolidate, etc..............................21
     SECTION 3.11.  Successor Transferee.....................................22
     SECTION 3.12.  No Other Business........................................22
     SECTION 3.13.  Servicer's Obligations...................................22
     SECTION 3.14.  Restricted Payments......................................23

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     SECTION 3.15.  Notice of Events of Default..............................23
     SECTION 3.16.  Further Instruments and Acts.............................23
     SECTION 3.17.  Compliance with Laws.....................................23
     SECTION 3.18.  Amendments of Trust Agreement............................23

                                  ARTICLE IV

                          SATISFACTION AND DISCHARGE

     SECTION 4.01.  Satisfaction and Discharge of Indenture..................23
     SECTION 4.02.  Application of Trust Money...............................24
     SECTION 4.03.  Repayment of Monies Held by Paying Agent.................24

                                   ARTICLE V

                          EVENTS OF DEFAULT; REMEDIES

     SECTION 5.01.  Events of Default........................................24
     SECTION 5.02.  Rights Upon Event of Default.............................25
     SECTION 5.03.  Collection of Indebtedness and Suits for Enforcement by
                    Indenture Trustee........................................26
     SECTION 5.04.  Remedies.................................................27
     SECTION 5.05.  Optional Preservation of the Receivables.................28
     SECTION 5.06.  Priorities...............................................28
     SECTION 5.07.  Limitation of Suits......................................28
     SECTION 5.08.  Unconditional Rights of Noteholders to Receive Principal
                    and Interest.............................................29
     SECTION 5.09.  Restoration of Rights and Remedies.......................29
     SECTION 5.10.  Rights and Remedies Cumulative...........................29
     SECTION 5.11.  Delay or Omission Not a Waiver...........................29
     SECTION 5.12.  Control by Noteholders...................................29
     SECTION 5.13.  Waiver of Past Defaults..................................30
     SECTION 5.14.  Undertaking for Costs....................................30
     SECTION 5.15.  Waiver of Stay or Extension Laws.........................30
     SECTION 5.16.  Action on Notes..........................................30
     SECTION 5.17.  Performance and Enforcement of Certain Obligations.......31

                                  ARTICLE VI

                             THE INDENTURE TRUSTEE

     SECTION 6.01.  Duties of Indenture Trustee..............................31
     SECTION 6.02.  Rights of Indenture Trustee..............................33
     SECTION 6.03.  Individual Rights of Indenture Trustee...................34
     SECTION 6.04.  Indenture Trustee's Disclaimer...........................34
     SECTION 6.05.  Notice of Defaults.......................................34
     SECTION 6.06.  Reports by Indenture Trustee to Holders..................34
     SECTION 6.07.  Compensation and Indemnity...............................34
     SECTION 6.08.  Replacement of Indenture Trustee.........................35
     SECTION 6.09.  Successor Indenture Trustee by Merger....................35
     SECTION 6.10.  Appointment of Co-Indenture Trustee or Separate
                    Indenture Trustee........................................36

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     SECTION 6.11.  Eligibility..............................................37
     SECTION 6.12.  Preferential Collection of Claims Against Issuer.........37
     SECTION 6.13.  Representations and Warranties of Indenture Trustee......37

                                  ARTICLE VII

                        NOTEHOLDERS' LISTS AND REPORTS

     SECTION 7.01.  Issuer to Furnish Indenture Trustee Names and Addresses
                    of Noteholders...........................................37
     SECTION 7.02.  Preservation of Information; Communications to
                    Noteholders..............................................37
     SECTION 7.03.  Reports by Issuer........................................38
     SECTION 7.04.  Reports by Indenture Trustee.............................38

                                 ARTICLE VIII

                              INTENTIONALLY BLANK

                                  ARTICLE IX

                 DISTRIBUTIONS; STATEMENTS TO THE NOTEHOLDERS

     SECTION 9.01.  Collection Account.......................................38
     SECTION 9.02.  Collections..............................................39
     SECTION 9.03.  Purchase Amounts.........................................39
     SECTION 9.04.  Distributions to Parties.................................39
     SECTION 9.05.  Servicer Advances........................................41
     SECTION 9.06.  Net Deposits.............................................41
     SECTION 9.07.  Intentionally Blank......................................41
     SECTION 9.08.  Intentionally Blank......................................41
     SECTION 9.09.  Payahead Account.........................................41
     SECTION 9.10.  Release of Pledged Assets................................41
     SECTION 9.11.  Opinion of Counsel.......................................42

                                   ARTICLE X

                              CREDIT ENHANCEMENT

     SECTION 10.01. Subordination............................................42
     SECTION 10.02. Spread Account...........................................42
     SECTION 10.03. Policy...................................................43

                                   ARTICLE XI

                             SUPPLEMENTAL INDENTURES

     SECTION 11.01. Supplemental Indentures Without Consent of Noteholders...44

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     SECTION 11.02. Supplemental Indentures With Consent of Noteholders......45
     SECTION 11.03. Execution of Supplemental Indentures.....................45
     SECTION 11.04. Effect of Supplemental Indenture.........................46
     SECTION 11.05. Conformity With Trust Indenture Act......................46
     SECTION 11.06. Reference in Notes to Supplemental Indentures............46

                                  ARTICLE XII

                              REDEMPTION OF NOTES

     SECTION 12.01. Redemption...............................................46
     SECTION 12.02. Form of Redemption Notice................................46
     SECTION 12.03. Notes Payable on Redemption Date.........................47

                                 ARTICLE XIII

                                 MISCELLANEOUS

     SECTION 13.01. Compliance Certificates and Opinions, etc................47
     SECTION 13.02. Form of Documents Delivered to Indenture Trustee.........48
     SECTION 13.03. Acts of Noteholders......................................49
     SECTION 13.04. Notices, etc., to Indenture Trustee, Issuer, Insurer
                    and Rating Agencies......................................49
     SECTION 13.05. Notices to Noteholders; Waiver...........................50
     SECTION 13.06. Alternate Payment and Notice Provisions..................50
     SECTION 13.07. Conflict With Trust Indenture Act........................50
     SECTION 13.08. Effect of Headings and Table of Contents.................50
     SECTION 13.09. Successors and Assigns...................................50
     SECTION 13.10. Separability.............................................50
     SECTION 13.11. Benefits of Indenture....................................50
     SECTION 13.12. Legal Holidays...........................................51
     SECTION 13.13. Governing Law............................................51
     SECTION 13.14. Counterparts.............................................51
     SECTION 13.15. Recording of Indenture...................................51
     SECTION 13.16. Trust Obligation.........................................51
     SECTION 13.17. No Petition..............................................51
     SECTION 13.18. Inspection...............................................51
     SECTION 13.19. Limitation of Liability of Owner Trustee.................52
     SECTION 13.20. Certain Matters Regarding the Insurer....................52

EXHIBITS

Schedule A        Form of Depository Agreement
Exhibit A-1       Form of Class A-1 Note
Exhibit A-2       Form of Class A-2 Note
Exhibit A-3       Form of Class A-3 Note
Exhibit A-4       Form of Class A-4 Note
Exhibit B         Form of Class B Note

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                             CROSS-REFERENCE TABLE

310(a)......................................................................6.11
310(b)......................................................................6.11
310(c).......................................................................N/A
311(a)......................................................................6.12
311(b)......................................................................6.12
311(c).......................................................................N/A
312(a)................................................................7.01, 7.02
312(b)......................................................................7.02
312(c)......................................................................7.02
313(a)......................................................................7.04
313(b)......................................................................7.04
313(c)......................................................................7.03
314(a)......................................................................7.03
314(b)......................................................................3.06
314(c).........................................................3.06, 4.01, 13.01
314(d).....................................................................13.01
314(e).....................................................................13.01
314(f).......................................................................N/A
315(a)......................................................................6.01
315(b)......................................................................6.05
315(c)......................................................................6.01
315(d)......................................................................6.01
315(e)......................................................................5.14
316(a)......................................................................5.04
316(b).....................................................................11.02
316(c).....................................................................13.03
317(a)......................................................................5.03
317(b)......................................................................3.03
318(a)......................................................................1.02

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     This INDENTURE, dated as of ____________, ____, is entered into between BAY
VIEW ____- ___ OWNER TRUST, a Delaware business trust, as issuer (the "Issuer"),
and ___________________, a Delaware banking corporation, as indenture trustee
(the "Indenture Trustee").

     Each party agrees as follows for the benefit of the other parties and for
the benefit of the Noteholders and the Insurer:

                                GRANTING CLAUSE

     The Issuer hereby Grants to the Indenture Trustee on behalf of the Trust on
the Closing Date, on behalf of and for the benefit of the Noteholders and the
Insurer, without recourse, all of the Issuer's right, title and interest in, to
and under, (i) the Receivables listed on Schedule A to the Trust Agreement, (ii)
the security interests in the Financed Vehicles or in any other property granted
by Obligors pursuant to the Receivables, (iii) any Liquidation Proceeds and any
proceeds from claims or refunds of premiums on any physical damage, lender's
single interest, credit life, disability and hospitalization insurance policies
covering Financed Vehicles or Obligors relating to the Receivables, (iv) funds
deposited in the Spread Account (and any Eligible Investments purchased
therewith), the Collection Account and the Payahead Account with respect to the
Receivables, (v) the interest of the Issuer in any proceeds from recourse to
Dealers relating to the Receivables, (vi) all documents contained in the
Receivable Files relating to the Receivables, (vii) all monies paid and all
monies due, including Accrued Interest, as of and after the Cutoff Date (but
excluding Accrued Interest paid on or prior to the Closing Date), (viii) the
rights of the Seller pursuant to the Purchase Agreement and the rights of the
Issuer pursuant to the Trust Agreement to require BVAC to repurchase any such
Receivables as to which there has been a breach of the representations and
warranties contained therein, (ix) the benefits of the Policy with respect to
the Receivables and (x) all proceeds (including, without limitation, "proceeds"
as defined in the UCC of the jurisdiction the law of which governs the
perfection of the interest in such Receivables so transferred) of any of the
foregoing. Such property described in the preceding sentence, together with (a)
any and all other right, title and interest, including any beneficial interest
the Issuer may have in the Collection Account, the Spread Account and (b) the
funds deposited in and from time to time on deposit in such accounts, and all
Eligible Investments and other securities, instruments and other investments
purchased from such funds, shall hereinafter be referred to as the "Pledged
Assets." The Issuer does not convey to the Indenture Trustee, and the Pledged
Assets do not include, any interest in any contracts with Dealers related to any
"dealer reserve" or any rights to the recapture of any dealer reserve with
respect to such Receivables.

     The foregoing Grant is made in trust to secure the payment of principal of
and interest on, and any other amounts owing in respect of, the Notes, equally
and ratably without prejudice, priority or distinction (except as provided
herein with respect to the subordination of the Class B Notes), and to secure
compliance with the provisions of this Indenture and the Insurance Agreement,
all as provided in this Indenture and the Insurance Agreement.

     The Indenture Trustee, as Indenture Trustee on behalf of the Noteholders
and the Insurer, acknowledges such Grant, accepts the trusts under this
Indenture in accordance with the provisions of this Indenture and agrees to
perform its duties required in this Indenture to the best of its ability to the
end that the interests of the Noteholders may be adequately and effectively
protected.

                                   ARTICLE I

                  DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.01. Definitions.

     (a) Except as otherwise specified herein or as the context may otherwise
require, (i) capitalized terms that are used herein that are not otherwise
defined herein shall have the meanings assigned to them in the Trust Agreement
(as defined below) and (ii) the following terms have the respective meanings set
forth below for all purposes of this Indenture.

                                       1
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     "Accelerated Principal Amount" means, for any Payment Date after giving
effect to all payments of interest and principal (other than any Accelerated
Principal Amount) to the Noteholders, an amount equal to the lesser of (1) the
Available Excess Funds or (2) the amount necessary to reduce the then aggregate
Note Balances below the Pool Balance as of the end of the related Collection
Period until the aggregate Pool Balance exceeds the aggregate Note Balances by
2.5% of the initial Note Balances or $ .

     "Act" shall have the meaning specified in Section 13.03(a).

     "Administration Agreement" means the Administration Agreement, dated as of
the date hereof, among the Administrator, the Issuer, the Owner Trustee and the
Indenture Trustee.

     "Administrator" means the Servicer, or any successor Administrator under
the Administration Agreement.

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

     "Available Excess Funds" for any Payment Date means the amount of Available
Funds remaining from such Payment Date after paying the Servicer, the
Noteholders and the Insurer the amounts they are entitled to receive, without
considering the amount of the Monthly Principal payment in respect of the
Accelerated Principal Amount.

     "Available Funds" has the meaning provided in the Trust Agreement.

     "Basic Documents" means the Certificate of Trust, the Trust Agreement, the
Administration Agreement, the Depository Agreement, the Insurance Agreement, the
Policy and this Indenture.

     "BVAC" means Bay View Acceptance Corporation, a Nevada corporation, and its
successors.

     "Book-Entry Notes" means a beneficial interest in the Notes, ownership and
transfers of which shall be made through book entries by a Clearing Agency as
described in Section 2.09.

     "Certificateholders" mean the owners or holders of the Certificates
pursuant to the Trust Agreement.

     "Class" means all Notes whose form is identical except for variation in
denomination, principal amount or owner.

     "Class A Monthly Interest" means the sum of Class A-1 Monthly Interest,
Class A-2 Monthly Interest, Class A-3 Monthly Interest and Class A-4 Monthly
Interest.

     "Class A Monthly Principal" means the sum of Class A-1 Monthly Principal,
Class A-2 Monthly Principal, Class A-3 Monthly Principal and Class A-4 Monthly
Principal.

     "Class A Note" means a Class A-1 Note, a Class A-2 Note, a Class A-3 Note
or a Class A-4 Note.

     "Class A-1 Interest Rate" means ____% per annum.

                                        2
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     "Class A-1 Monthly Interest" means, (i) for the first Payment Date, the
product of one-three hundred sixtieth (1/360th) of the Class A-1 Interest Rate,
the actual number of days from the Closing Date through the day before the first
Payment Date and the Class A-1 Note Balance at the Closing Date and (ii) for any
subsequent Payment Date, the product of one-three hundred sixtieth (1/360th) of
the Class A-1 Interest Rate, the actual number of days from the previous Payment
Date through the day before the related Payment Date and the Class A-1 Note
Balance as of the immediately preceding Payment Date (after giving effect to any
distribution of Monthly Principal made on such immediately preceding Payment
Date).

     "Class A-1 Monthly Principal" means that portion of Monthly Principal to be
paid to Class A-1 Noteholders on each Payment Date in accordance with Section
9.04.

     "Class A-1 Note" means a promissory note executed on behalf of the Trust
and authenticated by the Indenture Trustee substantially in the form attached
hereto as Exhibit A-1.

     "Class A-1 Note Balance" means, at any time, the Initial Class A-1 Note
Balance minus all payments of Monthly Principal to Class A-1 Noteholders made up
to such time.

     "Class A-1 Noteholder" means the Person in whose name the respective Class
A-1 Note shall be registered in the Note Register, except that, solely for the
purposes of giving any consent, waiver, request, or demand pursuant to this
Indenture, the interest evidenced by any Class A-1 Note registered in the name
of the Issuer, the Seller, the Servicer or BVAC, or any Person controlling,
controlled by, or under common control with the Issuer, the Seller or the
Servicer, shall not be taken into account in determining whether the requisite
percentage necessary to effect any such consent, waiver, request, or demand
shall have been obtained.

     "Class A-2 Interest Rate" means ____% per annum.

     "Class A-2 Monthly Interest" means, (i) for the first Payment Date, the
product of one twelfth of the Class A-2 Interest Rate, the number of days from
the Closing Date (assuming the month of the Closing Date has 30 days) through
the day before the first Payment Date divided by 30 and the Class A-2 Note
Balance at the Closing Date and (ii) for any subsequent Payment Date, the
product of one-twelfth of the Class A-2 Interest Rate and the Class A-2 Note
Balance as of the immediately preceding Payment Date (after giving effect to any
distribution of Monthly Principal made on such immediately preceding Payment
Date).

     "Class A-2 Monthly Principal" means that portion of Monthly Principal to be
paid to Class A-2 Noteholders on each Payment Date in accordance with Section
9.04.

     "Class A-2 Note" means a promissory note executed on behalf of the Trust
and authenticated by the Indenture Trustee substantially in the form attached
hereto as Exhibit A-2.

     "Class A-2 Note Balance" means, at any time, the Initial Class A-2 Note
Balance minus all payments of Monthly Principal to Class A-2 Noteholders made up
to such time.

     "Class A-2 Noteholder" means the Person in whose name the respective Class
A-2 Note shall be registered in the Note Register, except that, solely for the
purposes of giving any consent, waiver, request, or demand pursuant to this
Indenture, the interest evidenced by any Class A-2 Note registered in the name
of the Issuer, the Seller, the Servicer or BVAC, or any Person controlling,
controlled by, or under common control with the Issuer, the Seller or the
Servicer, shall not be taken into account in determining whether the requisite
percentage necessary to effect any such consent, waiver, request, or demand
shall have been obtained.

     "Class A-3 Interest Rate" means ____% per annum.

                                       3
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     "Class A-3 Monthly Interest" means, (i) for the first Payment Date, the
product of one twelfth of the Class A-3 Interest Rate, the number of days from
the Closing Date (assuming the month of the Closing Date has 30 days) through
the day before the first Payment Date divided by 30 and the Class A-3 Note
Balance at the Closing Date and (ii) for any subsequent Payment Date, the
product of one-twelfth of the Class A-3 Interest Rate and the Class A-3 Note
Balance as of the immediately preceding Payment Date (after giving effect to any
distribution of Monthly Principal made on such immediately preceding Payment
Date).

     "Class A-3 Monthly Principal" means that portion of Monthly Principal to be
paid to Class A-3 Noteholders on each Payment Date in accordance with Section
9.04.

     "Class A-3 Note" means a promissory note executed on behalf of the Trust
and authenticated by the Indenture Trustee substantially in the form attached
hereto as Exhibit A-3.

     "Class A-3 Note Balance" means, at any time, the Initial Class A-3 Note
Balance minus all payments of Monthly Principal to Class A-3 Noteholders made up
to such time.

     "Class A-3 Noteholder" means the Person in whose name the respective Class
A-3 Note shall be registered in the Note Register, except that, solely for the
purposes of giving any consent, waiver, request, or demand pursuant to this
Indenture, the interest evidenced by any Class A-3 Note registered in the name
of the Issuer, the Seller, the Servicer or BVAC, or any Person controlling,
controlled by, or under common control with the Issuer, the Seller or the
Servicer, shall not be taken into account in determining whether the requisite
percentage necessary to effect any such consent, waiver, request, or demand
shall have been obtained.

     "Class A-4 Interest Rate" means ____% per annum; provided, however, the per
annum rate shall be increased by 0.50% beginning on the first Payment Date
following the end of any Collection Period on which the Pool Balance is equal to
or less than 10% of the Original Pool Balance if the Class A-4 Notes will not be
redeemed on such Payment Date.

     "Class A-4 Monthly Interest" means, (i) for the first Payment Date, the
product of one twelfth of the Class A-4 Interest Rate, the number of days from
the Closing Date (assuming the month of the Closing Date has 30 days) through
the day before the first Payment Date divided by 30 and the Class A-4 Note
Balance at the Closing Date and (ii) for any subsequent Payment Date, the
product of one-twelfth of the Class A-4 Interest Rate and the Class A-4 Note
Balance as of the immediately preceding Payment Date (after giving effect to any
distribution of Monthly Principal made on such immediately preceding Payment
Date).

     "Class A-4 Monthly Principal" means that portion of Monthly Principal to be
paid to Class A-4 Noteholders on each Payment Date in accordance with Section
9.04.

     "Class A-4 Note" means a promissory note executed on behalf of the Trust
and authenticated by the Indenture Trustee substantially in the form attached
hereto as Exhibit A-4.

     "Class A-4 Note Balance" means, at any time, the Initial Class A-4 Note
Balance minus all payments of Monthly Principal to Class A-4 Noteholders made up
to such time.

     "Class A-4 Noteholder" means the Person in whose name the respective Class
A-4 Note shall be registered in the Note Register, except that, solely for the
purposes of giving any consent, waiver, request, or demand pursuant to this
Indenture, the interest evidenced by any Class A-4 Note registered in the name
of the Issuer, the Seller, the Servicer or BVAC, or any Person controlling,
controlled by, or under common control with the Issuer, the Seller or the
Servicer, shall not be taken into account in determining whether the requisite
percentage necessary to effect any such consent, waiver, request, or demand
shall have been obtained.

                                       4
<PAGE>

     "Class B Interest Rate" means ____% per annum; provided, however, the per
annum rate shall be increased by 0.50% beginning on the first Payment Date
following the end of any Collection Period on which the Pool Balance is equal to
or less than 10% of the Original Pool Balance if the Class B Notes will not be
redeemed on such Payment Date.

     "Class B Monthly Interest" means, (i) for the first Payment Date, the
product of one twelfth of the Class B Interest Rate, the number of days from the
Closing Date (assuming the month of the Closing Date has 30 days) through the
day before the first Payment Date divided by 30 and the Class B Note Balance at
the Closing Date and (ii) for any subsequent Payment Date, the product of
one-twelfth of the Class B Interest Rate and the Class B Note Balance as of the
immediately preceding Payment Date (after giving effect to any distribution of
Monthly Principal made on such immediately preceding Payment Date).

     "Class B Monthly Principal" means that portion of Monthly Principal to be
paid to Class B Noteholders on each Payment Date in accordance with Section
9.04.

     "Class B Note" means a promissory note executed on behalf of the Trust and
authenticated by the Indenture Trustee substantially in the form attached hereto
as Exhibit B.

     "Class B Note Balance" means, at any time, the Initial Class B Note Balance
minus all payments of Monthly Principal to Class B Noteholders made up to such
time.

     "Class B Noteholder" means the Person in whose name the respective Class B
Note shall be registered in the Note Register, except that, solely for the
purposes of giving any consent, waiver, request, or demand pursuant to this
Indenture, the interest evidenced by any Class B Note registered in the name of
the Issuer, the Seller, the Servicer or BVAC, or any Person controlling,
controlled by, or under common control with the Issuer, the Seller or the
Servicer, shall not be taken into account in determining whether the requisite
percentage necessary to effect any such consent, waiver, request, or demand
shall have been obtained.

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

     "Controlling Party" means the Insurer, so long as no Insurer Default shall
have occurred and be continuing, and the Indenture Trustee, for so long as an
Insurer Default shall have occurred and be continuing.

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

     "Definitive Notes" shall have the meaning specified in Section 2.09.

     "Depository Agreement" means the agreement dated ___________, ____, among
the Issuer, the Indenture Trustee and DTC, as the initial Clearing Agency,
relating to the Notes, substantially in the form of Schedule A hereto.

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

     "Executive Officer" means, with respect to any corporation or bank, the
Chief Executive Officer, Chief Operating Officer, Chief Financial Officer,
President, Executive Vice President, any Vice President, the Secretary or the
Treasurer of such corporation or bank; and with respect to any partnership, any
general partner thereof.

     "Final Maturity Date" means ______________ with respect to the Class A-1
Notes, ______________ with respect to the Class A-2 Notes, ______________ with
respect to the Class A-3 Notes, ______________ with respect to the Class A-4
Notes and ______________ with respect to the Class B Notes.

                                        5
<PAGE>

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

     "Issuer" means Bay View _____-_____ Owner Trust as the issuer of the Notes
under this Indenture and its permitted successors and assigns.

     "Indebtedness" means, with respect to any Person at any time, (i)
indebtedness or liability of such Person for borrowed money whether or not
evidenced by bonds, debentures, notes or other instruments, or for the deferred
purchase price of property or services (including trade obligations); (ii)
obligations of such Person as lessee under leases which should have been or
should be, in accordance with generally accepted accounting principles, recorded
as capital leases; (iii) current liabilities of such Person in respect of
unfunded vested benefits under plans covered by Title IV of ERISA; (iv)
obligations issued for or liabilities incurred on the account of such Person;
(v) obligations or liabilities of such Person arising under acceptance
facilities; (vi) obligations of such Person under any guaranties, endorsements
(other than for collection or deposit in the ordinary course of business) and
other contingent obligations to purchase, to provide funds for payment, to
supply funds to invest in any Person or otherwise to assure a creditor against
loss; (vii) obligations of such Person secured by any lien on property or assets
of such Person, whether or not the obligations have been assumed by such Person;
or (viii) obligations of such Person under any interest rate or currency
exchange agreement.

     "Indenture" means this Indenture, as amended or supplemented from time to
time.

     "Indenture Trustee" means ____________________, a _______________ banking
corporation as the Indenture Trustee under this Indenture and its permitted
successors and assigns.

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

     "Independent Certificate" means a certificate or opinion to be delivered to
the Indenture Trustee under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 13.01, made by an
Independent appraiser or other expert appointed by an Issuer Order and approved
by the Indenture 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.

     "Initial Class A-1 Note Balance" means $_____________________.

     "Initial Class A-2 Note Balance" means $_____________________.

     "Initial Class A-3 Note Balance" means $_____________________.

     "Initial Class A-4 Note Balance" means $_____________________.

                                        6
<PAGE>

     "Initial Class B Note Balance" means $_____________________.

     "Initial Note Balances" means $_____________________.

     "Insurance Premium" means for any Payment Date, an amount equal to the
product of (i) [__%] per annum calculated for the actual number of days elapsed
during the Collection Period on the basis of a 360- day year and (ii) the Note
Balances as of the Payment Date to which such Payment Date relates, payable
monthly in arrears.

     "Insurer Default" means the Insurer is in default under the Policy or the
Insurance Agreement after the expiration of any applicable cure period.

     "Issuer Order" and "Issuer Request" means a written order or request signed
in the name of the Issuer by an Authorized Officer and delivered to the
Indenture Trustee.

     "Monthly Interest" means the sum of Class A Monthly Interest and Class B
Monthly Interest.

     "Monthly Principal" for any Payment Date will equal the sum of the
following:

          (i)    the amount by which the Pool Balance declined during the
     related Collection Period;

          (ii)   the amount, if any, which is necessary to reduce the Note
     Balance of a class of Notes to zero on its Final Maturity Date; and

          (iii)  the Available Excess Funds or, if less, the portion thereof,
     that will cause the Pool Balance to exceed the Note Balances by the
     Accelerated Principal Amount.

For the purpose of determining Monthly Principal, the unpaid principal balance
of a Defaulted Receivable or a Purchased Receivable is deemed to be zero on and
after the last day of the Collection Period in which such Receivable became a
Defaulted Receivable or a Purchased Receivable.

     "Net Principal Policy Amount" means the Initial Note Balances as of the
first Payment Date minus all amounts previously drawn on the Policy or from the
Spread Account with respect to Monthly Principal.

     "Note" means a Class A-1 Note, a Class A-2 Note, a Class A-3 Note, a Class
A-4 Note or a Class B Note.

     "Note Balances" means, at any time the Initial Note Balances minus all
payments of Monthly Principal made to the Noteholders up to such time. The term
"Note Balance" means the Outstanding principal balance of a particular Class of
Notes, depending upon the context. When the term "Note Balances" is used herein
with respect to an issue relating to the consent of or voting of Noteholders,
such term shall refer only to the classes of Notes then Outstanding such that
the Notes will vote as a single class.

     "Noteholder" means the owner of a note.

     "Note Owner" means, with respect to a Book-Entry Note, the Person who is
the owner of such Book-Entry Note, as reflected on the books of the Clearing
Agency, or on the books of a Person maintaining an account with 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).

     "Note Register" and "Note Registrar" have the respective meanings specified
in Section 2.04.

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<PAGE>

     "Officer's Certificate" means a certificate signed by an Authorized Officer
of the Issuer, under the circumstances described in, and otherwise complying
with, the applicable requirements of Section 13.01, and delivered to, the
Indenture Trustee.

     "Opinion of Counsel" means one or more written opinions of counsel who may,
except as otherwise expressly provided in this Indenture, be employees of or
counsel to the Depositor or the Issuer and who shall be satisfactory to the
Indenture Trustee and, if addressed to the Insurer, satisfactory to the Insurer,
and which shall comply with any applicable requirements of Section 13.01, and
shall be in form and substance satisfactory to the Indenture Trustee, and if
addressed to the Insurer, satisfactory to the Insurer.

     "Original Pool Balance" means $_____________________.

     "Outstanding" or "Outstanding Notes" means, as of the date of
determination, all Notes theretofore authenticated and delivered under this
Indenture except:

          (i)    Notes theretofore canceled by the Note Registrar or delivered
to the Note Registrar for cancellation;

          (ii)   Notes or portions thereof the payment for which money in the
necessary amount has been theretofore deposited with the Indenture Trustee or
any Paying Agent in trust for the Holders of such Notes (provided, however, that
if such Notes are to be redeemed, notice of such redemption has been duly given
pursuant to this Indenture or provision for such notice has been made,
satisfactory to the Indenture Trustee, has been made); and

          (iii)  Notes in exchange for or in lieu of other Notes which have been
authenticated and delivered pursuant to this Indenture unless proof satisfactory
to the Indenture Trustee is presented that any such Notes are held by a bona
fide purchaser; provided, however, that in determining whether the Holders of
the requisite Outstanding Note Balances have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or under any other
Basic Document, Notes owned by the Issuer, the Seller or any of their respective
Affiliates shall be disregarded and deemed not to be Outstanding, except that,
in determining whether the Indenture Trustee shall be protected in relying upon
any such request, demand, authorization, direction, notice, consent or waiver,
only Notes that the Indenture Trustee knows to be so owned shall be so
disregarded. Notes so owned that have been pledged in good faith may be regarded
as Outstanding if the pledgee establishes to the satisfaction of the Indenture
Trustee the pledgee's right so to act with respect to such Notes and that the
pledgee is not the Issuer, the Seller or any of their respective Affiliates.

     "Paying Agent" means the Indenture Trustee or any other Person that meets
the eligibility standards for the Indenture Trustee specified in Section 6.11
and is authorized by the Issuer to make the distributions from the Collection
Account, including payment of principal of or interest on the Notes on behalf of
the Issuer.

     "Pledged Assets" has the meaning provided in the Granting Clause of this
Indenture.

     "Policy" means the irrevocable financial guaranty insurance policy dated as
of ______, ____, issued by the Insurer to the Indenture Trustee for the benefit
of the Noteholders and having a maximum amount available to be drawn in respect
of Monthly Interest and Monthly Principal equal to the Policy Amount.

     "Policy Amount" means with respect to any Payment Date:

          (x) the sum of (A) the lesser of (i) the Note Balances (after giving
     effect to any distribution of Available Funds and any funds withdrawn from
     the Spread Account to pay Monthly Principal on such Payment Date) and (ii)
     the Net Principal Policy Amount, plus (B) Monthly Interest, plus (C) the
     Monthly Servicing Fee; less

                                        8
<PAGE>

          (y) all amounts on deposit in the Spread Account on such Payment Date
     (after giving effect to any amounts withdrawn from the Spread Account to
     pay Monthly Principal on such Payment Date).

     "Predecessor Note" means, with respect to any particular Note, every
previous Note evidencing all or a portion of the same debt as that evidenced by
such particular Note; and, for the purpose of this definition, any Note
authenticated and delivered under Section 2.05 in lieu of a mutilated, lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

     "Principal Payment Sequence" means the order in which Monthly Principal
shall be distributed among the Noteholders. The order of distribution of Monthly
Principal is:

     (1)  to the Class A-1 Noteholders until the Class A-1 Note Balance has been
          reduced to zero;

     (2)  to the Class A-2 Noteholders until the Class A-2 Note Balance has been
          reduced to zero;

     (3)  to the Class A-3 Noteholders until the Class A-3 Note Balance has been
          reduced to zero;

     (4)  to the Class A-4 Noteholders until the Class A-4 Note Balance has been
          reduced to zero; and

     (5)  to the Class B Noteholders until the Class B Note Balance has been
          reduced to zero.

However, if the amount of Available Funds (together with amounts withdrawn from
the Spread Account and/or the Policy) are not sufficient on any Payment Date to
pay the required payment of Class A Monthly Principal to Class A Noteholders in
full, the amount of such funds available to pay Class A Monthly Principal to
Class A Noteholders will be distributed pro rata to the Class A Noteholders
based upon the relative Note Balance of each class of Class A Notes.

     "Proceeding" means any suit in equity, action at law or other judicial or
administrative proceeding.

     "Rating Agency Condition" means, with respect to any action, that (i)
_________________ shall have been given ten Business Days (or such shorter
period as is acceptable to _________________) prior notice thereof and that
_________________ shall have notified the Seller, the Servicer, the Insurer and
the Issuer in writing that such action will not result in a qualification,
reduction or withdrawal of its then-current rating of any Class of Notes, (ii)
_______ shall have been given ten Business Days (or such shorter period as is
acceptable to _______) prior notice thereof and copies of all documentation
relating to the event requiring such Rating Agency Condition and (iii) each
Rating Agency shall have confirmed to the Insurer that the shadow risk of the
Insurer with respect to the Notes is investment grade.

     "Rating Event" means the qualification, reduction or withdrawal by either
Rating Agency of its then-current rating of any Class of Notes.

     "Record Date" means, with respect to a Payment Date or Redemption Date, the
close of business on the Business Day immediately preceding such Payment Date or
Redemption Date, or, in the event that Definitive Notes are issued, the close of
business on the last day of the related Collection Period.

     "Redemption Date" means the Payment Date specified by the Servicer or the
Issuer pursuant to Section 12.01.

     "Redemption Price" means an amount equal to the unpaid principal amount of
the Notes redeemed plus accrued and unpaid interest thereon at the respective
interest rates of each Class of Notes being so redeemed to but excluding the
Redemption Date.

     "Holder" means the Person in whose name a Note is registered on the Note
Register on the applicable Record Date.

                                        9
<PAGE>

     "Required Spread Amount" means on each Payment Date, the lesser of (x) __%
of the Initial Note Balances and (y) the Note Balances as of the previous
Distribution Date (after giving effect to any payment of Monthly Principal on
such Payment Date); provided, that, upon and during the continuance of an
Indenture Default or a Trigger Event, the Required Spread Amount shall be equal
to the Policy Amount as of such Payment Date, without giving effect to amounts
on deposit in the related Spread Account, after giving effect to any draws on
the Policy, draws on the related Spread Account and other distributions pursuant
to Section 9.04 on such Payment Date. Once such Indenture Default or Trigger
Event has been cured or discontinued, the Required Spread Amount shall be
determined as set forth above.

     "Servicer Default" means an Event of Servicer Default under the Trust
Agreement.

     "State" means any one of the 50 states of the United States or the District
of Columbia.

     "Successor Servicer" shall have the meaning specified in Section 3.07(e).

     "Termination Date" means the latest of (i) the expiration of the Policy and
the return of the Policy to the Insurer for cancellation, (ii) the date on which
the Insurer shall have received payment and performance of all amounts and
obligations which the Issuer may owe to or on behalf of the Insurer under this
Indenture and (iii) the date on which the Indenture Trustee shall have received
payment and performance of all amounts and obligations which the Issuer may owe
to or on behalf of the Indenture Trustee for the benefit of the Noteholders
under this Indenture or the Notes.

     "Trust Agreement" means the Trust and Servicing Agreement, dated as of the
date hereof, between the Seller, the Servicer and the Owner Trustee.

     "Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939, as
amended, as in force on the date hereof, unless otherwise specifically provided.

     "United States" means the United States of America.

     SECTION 1.02. Incorporation by Reference of Trust Indenture Act. Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture. The following TIA terms used
in this Indenture have the following meanings:

     "Commission" means the Securities and Exchange Commission.

     "Indenture Securities" means the Notes.

     "Indenture Security Holder" means a Noteholder.

                                       10
<PAGE>

     "Indenture to be Qualified" means this Indenture.

     "Indenture Trustee" or "Institutional Trustee" means the Indenture Trustee.

     "Obligor" on the indenture securities means the Issuer and any other
obligor on the indenture securities.

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

     SECTION 1.03. Rules of Construction. Unless the context otherwise requires:

          (i)    a term has the meaning assigned to it;

          (ii)   an accounting term not otherwise defined has the meaning
     assigned to it in accordance with generally accepted accounting principles
     as in effect from time to time;

          (iii)  "or" is not exclusive;

          (iv)   "including" means including without limitation;

          (v)    words in the singular include the plural and words in the
     plural include the singular;

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

          (vii)  the words "hereof," "herein" and "hereunder" and words of
     similar import when used in this Indenture shall refer to this Indenture as
     a whole and not to any particular provision of this Indenture; Section,
     subsection and Schedule references contained in this Indenture are
     references to Sections, subsections and Schedules in or to this Indenture
     unless otherwise specified.

                                  ARTICLE II

                                   THE NOTES

     SECTION 2.01. Form. The Class A-1 Notes, Class A-2 Notes, Class A-3 Notes,
Class A-4 Notes and Class B Notes, in each case together with the Indenture
Trustee's certificate of authentication, shall be in substantially the forms set
forth as Exhibits A-1, A-2, A-3, A-4 and B to this Indenture with such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture and may have such letters, numbers or
other marks of identification and such legends or endorsements placed thereon as
may, consistently herewith, be determined by the officers executing such Notes,
as evidenced by their execution of the Notes. Any portion of the text of any
Note may be set forth on the reverse thereof, with an appropriate reference
thereto on the face of the Note.

     Each Note shall be dated the date of its authentication. The terms of the
Notes set forth in the exhibits hereto are part of the terms of this Indenture.

     SECTION 2.02. Execution, Authentication and Delivery. The Notes shall be
executed on behalf of the Issuer by the Owner Trustee, as provided in the Trust
Agreement. The signature of any such Authorized Officer on the Notes may be
manual or facsimile. Notes bearing the manual or facsimile signature of
individuals who were at any time Authorized Officers of the Issuer shall bind
the Issuer, notwithstanding that such individuals or any of them have ceased

                                       11
<PAGE>

to hold such offices prior to the authentication and delivery of such Notes or
did not hold such offices at the date of such Notes.

     The Indenture Trustee shall, upon receipt of an Issuer Order, authenticate
and deliver for original issue Notes in the amount of the Initial Class A-1 Note
Balance, the Initial Class A-2 Note Balance, the Initial Class A-3 Note Balance,
the Initial Class A-4 Note Balance and the Initial Class B Note Balance. The
aggregate principal amount of the Notes outstanding at any time may not exceed
such respective amounts, except as otherwise provided in Section 2.05. Each Note
shall be dated the date of its authentication. The Notes shall be issuable as
registered Notes in the minimum denomination of $1,000 and in integral multiples
of $1,000 in excess thereof, except that one Note of each Class may be issued in
a different denomination.

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

     SECTION 2.03. Temporary Notes. Pending the preparation of definitive Notes,
the Issuer may execute, and upon receipt of an Issuer Order the Indenture
Trustee shall authenticate and deliver, temporary Notes that are printed,
lithographed, typewritten, mimeographed or otherwise produced, of the tenor of
the definitive Notes in lieu of which they are issued and with such variations
not inconsistent with the terms of this Indenture as the officers executing such
Notes may determine, as evidenced by their execution of such Notes.

     If temporary Notes are issued, the Issuer will cause definitive Notes to be
prepared without unreasonable delay. After the preparation of definitive Notes,
the temporary Notes shall be exchangeable for definitive Notes upon surrender of
the temporary Notes at the office or agency of the Issuer to be maintained as
provided in Section 3.02, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Notes, the Issuer shall execute and
the Indenture Trustee shall authenticate and deliver in exchange therefor a like
tenor and principal amount of definitive Notes of authorized denominations.
Until so exchanged, the temporary Notes shall in all respects be entitled to the
same benefits under this Indenture as definitive Notes.

     SECTION 2.04. Registration; Registration of Transfer and Exchange. The
Issuer shall cause to be kept a register (the "Note Register") in which, subject
to such reasonable regulations as it may prescribe, the Issuer shall provide for
the registration of Notes and the registration of transfers of Notes. The
Indenture Trustee shall be "Note Registrar" for the purpose of registering Notes
and transfers of Notes as herein provided. Upon any resignation of any Note
Registrar, the Issuer shall promptly appoint a successor or, if it elects not to
make such an appointment, assume the duties of Note Registrar.

     If a Person other than the Indenture Trustee is appointed by the Issuer as
Note Registrar, the Issuer will give the Indenture Trustee prompt written notice
of the appointment of such Note Registrar and of the location, and any change in
the location, of the Note Register, and the Indenture Trustee shall have the
right to inspect the Note Register at all reasonable times and to obtain copies
thereof, and the Indenture Trustee shall have the right to rely upon a
certificate executed on behalf of the Note Registrar by an Executive Officer
thereof as to the names and addresses of the Noteholders and the principal
amounts and number of such Notes.

     Upon surrender for registration of transfer of any Note at the office or
agency of the Issuer to be maintained as provided in Section 3.02, the Issuer
shall execute, and the Indenture Trustee shall authenticate and the Noteholder
shall obtain from the Indenture Trustee, in the name of the designated
transferee or transferees, one or more new Notes of the same Class in any
authorized denominations, of a like aggregate principal amount.

     At the option of the Holder, Notes may be exchanged for other Notes of the
same Class in any authorized denominations, of a like aggregate principal
amount, upon surrender of the Notes to be exchanged at such office or

                                       12
<PAGE>

agency. Whenever any Notes are so surrendered for exchange, the Issuer shall
execute, and the Indenture Trustee shall authenticate and the Noteholder shall
obtain from the Indenture Trustee, the Notes which the Noteholder making the
exchange is entitled to receive.

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

     Every Note presented or surrendered for registration of transfer or
exchange shall be duly endorsed by, or be accompanied by a written instrument of
transfer in form satisfactory to the Indenture Trustee duly executed by, the
Holder thereof or such Holder's attorney duly authorized in writing, with such
signature guaranteed by a commercial bank or trust company located, or having a
correspondent located, in the city of New York or the city in which the
Corporate Trust Office is located, or by a member firm of a national securities
exchange, and such other documents as the Indenture Trustee may require.

     No service charge shall be made to a Holder for any registration of
transfer or exchange of Notes, but the Issuer or the Indenture Trustee may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Notes, other than exchanges pursuant to Section 2.03 or 11.06 not
involving any transfer.

     The preceding provisions of this Section notwithstanding, the Issuer shall
not be required to make and the Note Registrar need not register transfers or
exchanges of Notes selected for redemption or of any Note for a period of 15
days preceding the due date for any payment with respect to the Note.

     SECTION 2.05. Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Indenture Trustee and the Insurer
(unless an Insurer Default shall have occurred and be continuing) such security
or indemnity as may be required by them to hold the Issuer, the Indenture
Trustee and the Insurer harmless, then, in the absence of notice to the Issuer,
the Note Registrar or the Indenture Trustee that such Note has been acquired by
a bona fide purchaser, the Issuer shall execute and upon its request the
Indenture Trustee shall authenticate and deliver, in exchange for or in lieu of
any such mutilated, destroyed, lost or stolen Note, a replacement Note of the
same Class; provided, however, that if any such destroyed, lost or stolen Note,
but not a mutilated Note, shall have become or within seven days shall be due
and payable, or shall have been called for redemption, instead of issuing a
replacement Note, the Issuer may pay such destroyed, lost or stolen Note when so
due or payable or upon the Redemption Date without surrender thereof. If, after
the delivery of such replacement Note or payment of a destroyed, lost or stolen
Note pursuant to the proviso to the preceding sentence, a bona fide purchaser of
the original Note in lieu of which such replacement Note was issued presents for
payment such original Note, the Issuer, the Insurer and the Indenture Trustee
shall be entitled to recover such replacement Note (or such payment) from the
Person to whom it was delivered or any Person taking such replacement Note from
such Person to whom such replacement Note was delivered or any assignee of such
Person, except a bona fide purchaser, and shall be entitled to recover upon the
security or indemnity provided therefor to the extent of any loss, damage, cost
or expense incurred by the Issuer, the Insurer or the Indenture Trustee in
connection therewith.

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

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

                                       13
<PAGE>

     The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Notes. In the case of the
registration of transfer of any Note, the Issuer, the Indenture Trustee, the
Insurer and any of their respective agents may treat the Person in whose name
any Note is registered (as of the day of determination) as the owner of such
Note for the purpose of receiving payments of principal of and interest, if any,
on such Note and for all other purposes whatsoever, whether or not such Note be
overdue, and none of the Issuer, the Insurer, the Indenture Trustee nor any of
their respective agents shall be affected by notice to the contrary.

     SECTION 2.06. Intentionally Blank.

     SECTION 2.07. Payment of Principal and Interest; Defaulted Interest.

     (a) Each Class of Notes shall accrue interest as provided in the Indenture
at the related interest rate for such Class, and such interest shall be payable
on each Payment Date as specified therein, subject to Section 3.01. Interest
accrued on any Note but not paid on any Payment Date will be due on the
immediately succeeding Payment Date, together with, to the extent permitted by
applicable law, interest on such shortfall at the related interest rate. Any
installment of interest or principal, if any, payable on any Note which is
punctually paid or duly provided for by the Issuer on the applicable Payment
Date shall be paid to the Person in whose name such Note (or one or more
Predecessor Notes) is registered on the Record Date, by check mailed
first-class, postage prepaid to such Person's address as it appears on the Note
Register on such Record Date, except that, unless Definitive Notes have been
issued pursuant to Section 2.11, with respect to Notes registered on the Record
Date in the name of the nominee of the Clearing Agency (initially, such nominee
to be Cede & Co.), payment will be made by wire transfer in immediately
available funds to the account designated by such nominee and except for the
final installment of principal payable with respect to such Note on a Payment
Date, a Redemption Date or on the related Final Maturity Date, as the case may
be (and except for the Redemption Price for any Note called for redemption
pursuant to Section 12.01), which shall be payable as provided below. The funds
represented by any such checks returned undelivered shall be held in accordance
with Section 3.03.

     (b) The principal of each Note shall be payable on each Payment Date to the
extent provided in the form of the related Note set forth as an Exhibit hereto.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes
of a Class of Notes shall be due and payable, if not previously paid, on the
earlier of:

             (i) the Final Maturity Date of such Class;

             (ii) the Redemption Date;

             (iii) if an Event of Default shall have occurred and be continuing,
     so long as an Insurer Default shall not have occurred and be continuing,
     the date on which the Insurer shall have declared the Notes to be
     immediately due and payable in the manner provided in Section 5.02; or

             (iv) if an Event of Default shall have occurred and be continuing
     and an Insurer Default has occurred and is continuing, the date on which
     the Noteholders representing not less than 66 2/3% of the Note Balances
     have declared the Notes to be immediately due and payable in the manner
     provided in Section 5.02.

All principal payments on each Class of Notes shall be made pro rata to the
Noteholders of such Class entitled thereto. The Indenture Trustee shall notify
the Person in whose name a Note is registered at the close of business on the
Record Date preceding the Payment Date on which the Issuer expects that the
final installment of principal of and interest on such Note will be paid. Such
notice shall be mailed within five Business Days of such Payment Date (or, in
the case of Notes registered in the name of Cede & Co., as nominee of DTC, such
notice shall be provided within one Business Day of such Payment Date) or
receipt of notice of termination of the Trust pursuant to Section 16.01 of
the Trust Agreement and shall specify that such final installment will be
payable only upon presentation and surrender of such Note and shall specify the
place where such Note may be presented and surrendered for payment of such
installment. Notices in connection with redemptions of Notes shall be mailed to
Noteholders as provided in Section 12.02. In

                                       14
<PAGE>

addition, the Administrator shall notify the Insurer and the Rating Agencies
upon the final payment of interest and principal of each Class of Notes, and
upon the termination of the Trust, in each case pursuant to the Administration
Agreement.

     SECTION 2.08. Cancellation. All Notes surrendered for payment, registration
of transfer, exchange or redemption shall, if surrendered to any Person other
than the Indenture Trustee, be delivered to the Indenture Trustee and shall be
promptly cancelled by the Indenture Trustee. The Issuer may at any time deliver
to the Indenture Trustee for cancellation any Notes previously authenticated and
delivered hereunder which the Issuer may have acquired in any manner whatsoever,
and all Notes so delivered shall be promptly cancelled by the Indenture Trustee.
No Notes shall be authenticated in lieu of or in exchange for any Notes
cancelled as provided in this Section, except as expressly permitted by this
Indenture. All cancelled Notes may be held or disposed of by the Indenture
Trustee in accordance with its standard retention or disposal policy as in
effect at the time unless the Issuer shall direct by an Issuer Order that they
be destroyed or returned to it; provided that such Issuer Order is timely and
the Notes have not been previously disposed of by the Indenture Trustee.

     SECTION 2.09. Book-Entry Notes. The Notes, upon original issuance, will be
issued in the form of a typewritten Note or Notes representing the Book-Entry
Notes, to be delivered to DTC, the initial Depository, by, or on behalf of, the
Issuer (except for any fractional units which cannot be accepted by DTC). Such
Notes shall initially be registered on the Note Register in the name of Cede &
Co., the nominee of the initial Clearing Agency, and no Note Owner will receive
a Definitive Note representing such Note Owner's interest in such Note, except
as provided in Section 2.11. Unless and until definitive, fully registered Notes
(the "DEFINITIVE NOTES") have been issued to Note Owners pursuant to Section
2.11:

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

          (ii) the Note Registrar and the Indenture Trustee shall be entitled
     to deal with the Clearing Agency for all purposes of this Indenture
     (including the payment of principal of and interest on the Notes and the
     giving of instructions or directions hereunder) as the sole holder of the
     Notes, and shall have no obligation to the Note Owners;

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

          (iv) the rights of Note Owners shall be exercised only through the
     Clearing Agency and shall be limited to those established by law and
     agreements between such Note Owners and the Clearing Agency and/or the
     Clearing Agency Participants. Pursuant to the Depository Agreement, unless
     and until Definitive Notes are issued pursuant to Section 2.11, the
     Clearing Agency will make book-entry transfers among the Clearing Agency
     Participants and receive and transmit payments of principal of and interest
     on the Notes to such Clearing Agency Participants; and

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

     SECTION 2.10. Notices to Clearing Agency. Whenever a notice or other
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to Note Owners pursuant to Section
2.11, the Indenture Trustee shall give all such notices and communications
specified herein to be given to Noteholders to the Clearing Agency, and shall
have no obligation to the Note Owners.

                                      15
<PAGE>

     SECTION 2.11. Definitive Notes. If (i) the Administrator advises the
Indenture Trustee in writing that the Clearing Agency is no longer willing or
able to properly discharge its responsibilities as described in the Depository
Agreement, and the Administrator or the Indenture Trustee is unable to locate a
qualified successor, or (ii) after the occurrence of an Event of Default or a
Servicer Default, Note Owners representing in the aggregate more than 50% of the
Note Balances of all Classes of Notes advise the Indenture Trustee through the
Clearing Agency Participants in writing that the continuation of a book-entry
system through the Clearing Agency is no longer in the best interests of the
related Note Owners, then the Indenture Trustee shall notify all Note Owners,
through the Clearing Agency, of the availability of Definitive Notes to Note
Owners requesting the same. Upon surrender to the Indenture Trustee of the Note
or Notes evidencing the Book Entry Notes by the Clearing Agency, accompanied by
registration instructions from the Clearing Agency, the Issuer shall execute and
the Indenture Trustee shall authenticate the Definitive Notes and deliver such
Definitive Notes in accordance with the instructions of the Clearing Agency.
None of the Issuer, the Note Registrar or the Indenture Trustee shall be liable
for any delay in delivery of such instructions and may conclusively rely on, and
shall be protected in relying on, such instructions. Upon the issuance of
Definitive Notes of a Class, the Indenture Trustee shall recognize the Holders
of the Definitive Notes as Noteholders hereunder.

     The Indenture Trustee shall not be liable if the Indenture Trustee or the
Administrator is unable to locate a qualified successor Clearing Agency. The
Definitive Notes shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods (with or without steel engraved
borders), all as determined by the officers executing such Notes, as evidenced
by their execution of such Notes.

     SECTION 2.12. Release of Pledged Assets. Subject to Section 13.01 and the
terms of the Basic Documents, the Indenture Trustee shall release property from
the lien of this Indenture only upon receipt of an Issuer Request accompanied by
an Officer's Certificate, an Opinion of Counsel and Independent Certificates in
accordance with Sections 314(c) and 314(d)(l) of the TIA or an Opinion of
Counsel in lieu of such Independent Certificates to the effect that the TIA does
not require any such Independent Certificates.

     SECTION 2.13. Tax Treatment. The Issuer has entered into this Indenture,
and the Notes will be issued, with the intention that, for federal, state and
local income, single business and franchise tax purposes, the Notes will qualify
as indebtedness of the Issuer secured by the Pledged Assets. The Issuer, by
entering into this Indenture, and each Noteholder, by its acceptance of its Note
(and each Note Owner by its acceptance of an interest in the applicable
Book-Entry Note), agree to treat the Notes for federal, state and local income,
single business and franchise tax purposes as indebtedness of the Issuer.

     SECTION 2.14. ERISA. Each purchaser or transferee of a Note that is a
Benefit Plan shall be deemed to have represented that the relevant conditions
for exemptive relief under Prohibited Transaction Class Exemption ("PTCE")
84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE 96-23 or other applicable
exemption providing substantially similar relief have been satisfied.

                                  ARTICLE III

                                   COVENANTS

     SECTION 3.01. Payment of Principal and Interest. The Issuer will duly and
punctually pay Monthly Interest and Monthly Principal on the Notes in accordance
with the terms of the Notes and this Indenture. Without limiting the foregoing,
subject to Section 9.04(a), the Issuer will cause to be distributed the amount
of Available Funds on a Payment Date. The Issuer will cause the deposits
received on Receivables to be deposited into the Collection Account pursuant to
the Trust Agreement for the benefit of the Noteholders. Amounts properly
withheld under the Code by any Person from a payment to any Noteholder of
interest and/or principal shall be considered as having been paid by the Issuer
to such Noteholder for all purposes of this Indenture.

     SECTION 3.02. Maintenance of Office or Agency. The Issuer will or will
cause the Administrator or the Indenture Trustee to maintain in The City of New
York, an office or agency where Notes may be surrendered for

                                      16
<PAGE>

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

     SECTION 3.03. Money for Payments to be Held in Trust.

     (a) As provided in Section 9.02 of the Trust Agreement, all payments of
amounts due and payable with respect to any Notes that are to be made from
amounts withdrawn from the Collection Account, the Spread Account and the
Payahead Account shall be made on behalf of the Issuer by the Indenture Trustee
or by another Paying Agent, and no amounts so withdrawn from the Collection
Account, the Spread Account and the Payahead Account for payments of Notes shall
be paid over to the Issuer except as provided in this Section.

     The Notes shall be non-recourse obligations of the Issuer and shall be
limited in right of payment to amounts available from the Pledged Assets and the
Policy as provided in this Indenture and the Issuer shall not otherwise be
liable for payments on the Notes. No Person shall be personally liable for any
amounts payable under the Notes. If any other provision of this Indenture
conflicts or is deemed to conflict with the provisions of this paragraph, the
provisions of this paragraph shall control.

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

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

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

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

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

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

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

                                      17
<PAGE>

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

     SECTION 3.04. Existence. The Issuer will keep in full effect its existence,
rights and franchises as a business trust under the laws of the State of
Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other state or of the United States, in which
case the Issuer will keep in full effect its existence, rights and franchises
under the laws of such other jurisdiction) and will obtain and preserve its
qualification to do business in each jurisdiction in which such qualification is
or shall be necessary to protect the validity and enforceability of this
Indenture, the Notes, and the Pledged Assets.

     SECTION 3.05. Protection of Trust Estate. The Issuer intends the security
interest Granted pursuant to this Indenture in favor of the Indenture Trustee on
behalf of the Noteholders to be prior to all other liens in respect of the
Pledged Assets, and the Issuer shall take all actions necessary to obtain and
maintain, for the benefit of the Indenture Trustee on behalf of the Noteholders,
a first lien on and a first priority, perfected security interest in the Pledged
Assets. The Issuer will from time to time execute and deliver all such
supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other instruments,
all as prepared by the Servicer and delivered to the Issuer, and will take such
other action necessary or advisable to:

          (i) Grant more effectively all or any portion of the Pledged Assets;

          (ii) maintain or preserve the lien and security interest (and the
     priority thereof) created by this Indenture or carry out more effectively
     the purposes hereof;

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

          (iv) enforce any of the Pledged Assets;

          (v) preserve and defend title to the Pledged Assets and the rights of
     the Indenture Trustee and the Noteholders in such Pledged Assets against
     the claims of all persons and parties; or

          (vi) pay all taxes or assessments levied or assessed upon the Pledged
     Assets when due.

The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute all financing statements, continuation statements or
other instruments required to be executed pursuant to this Section.

                                      18
<PAGE>

     SECTION 3.06. Opinions as to Pledged Assets.

     (a) Promptly after the execution and delivery of this Indenture, the Issuer
shall furnish to the Indenture Trustee and the Insurer an Opinion of Counsel to
the effect that, in the opinion of such counsel, either (i) all financing
statements and continuation statements have been executed and filed that are
necessary to create and continue the Indenture Trustee's first priority
perfected security interest in the Pledged Assets (subject to the rights of the
Insurer under the Insurance Agreement) for the benefit of the Noteholders, and
reciting the details of such filings or referring to prior Opinions of Counsel
in which such details are given, or (ii) no such action shall be necessary to
perfect such security interest.

     (b) Within 90 days after the beginning of each calendar year beginning with
the first calendar year beginning more than three months after the Cutoff Date,
the Issuer shall furnish to the Indenture Trustee and the Insurer an Opinion of
Counsel, dated as of a date during such 90-day period, to the effect that, in
the opinion of such counsel, either (i) all financing statements and
continuation statements have been executed and filed that are necessary to
create and continue the Indenture Trustee's first priority perfected security
interest in the Pledged Assets (subject to the rights of the Insurer under the
Insurance Agreement) for the benefit of the Noteholders, and reciting the
details of such filings or referring to prior Opinions of Counsel in which such
details are given, or (ii) no such action shall be necessary to perfect such
security interest.

     SECTION 3.07. Performance of Obligations; Servicing of Receivables.

     (a) The Issuer will not take any action and will use its best efforts not
to permit any action to be taken by others that would release any Person from
any of such Person's material covenants or obligations under any instrument or
agreement included in the Pledged Assets or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any such instrument or agreement, except as
expressly provided in the Basic Documents or such other instrument or agreement.

     (b) The Issuer may contract with or otherwise obtain the assistance of
other Persons (including, without limitation, the Administrator under the
Administration Agreement) to assist it in performing its duties and obligations
under this Indenture, and any performance of such duties by a Person identified
to the Indenture Trustee and the Insurer in an Officer's Certificate shall be
deemed to be action taken by the Issuer. The Indenture Trustee shall not be
responsible for the action or inaction of the Servicer or the Administrator.
Initially, the Issuer has contracted with the Servicer as the Administrator to
assist the Issuer in performing its duties under this Indenture.

     (c) The Issuer will punctually perform and observe all of its obligations
and agreements contained in this Indenture, the other Basic Documents and in the
instruments and agreements included in the Pledged Assets, including but not
limited to filing or causing to be filed all UCC financing statements and
continuation statements required to be filed by the terms of this Indenture and
the Trust Agreement in accordance with and within the time periods provided for
herein and therein. Except as otherwise expressly provided therein, the Issuer
shall not waive, amend, modify, supplement or terminate any Basic Document or
any provision thereof without the consent of the Indenture Trustee, the Insurer
(unless an Insurer Default has occurred and is continuing) and the Holders of at
least a majority of the Note Balances of the Notes.

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

     (e) Upon the resignation or termination of the Servicer pursuant to
Sections 13.05 or 14.01 of the Trust Agreement, the Indenture Trustee shall
appoint a successor servicer ("Successor Servicer") acceptable to the Insurer.
If the Indenture Trustee shall succeed to the Servicer's duties as servicer of
the Receivables as provided in 14.02 of the

                                      19
<PAGE>

Trust Agreement, it shall do so in its individual capacity and not in its
capacity as Indenture Trustee and, accordingly, the provisions of Article Six
shall be inapplicable to the Indenture Trustee in its duties as the successor to
the Servicer and the servicing of the Receivables. In case the Indenture Trustee
shall become successor to the Servicer under the Trust Agreement, the Indenture
Trustee shall be entitled to appoint as Servicer one of its Affiliates, provided
that it shall not be liable for the actions and omissions of any such Affiliate
in such capacity as successor Servicer appointed with due care.

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

     (g) The Issuer agrees that it will not waive timely performance or
observance by the Servicer or the Seller of their respective duties under the
Basic Documents: (i) without the prior consent of the Insurer (unless an Insurer
Default shall have occurred and be continuing) or (ii) if the effect thereof
would adversely affect the Noteholders.

     SECTION 3.08. Negative Covenants. Until the Termination Date, the Issuer
shall not:

          (i) except as expressly permitted by the Basic Documents, sell,
     transfer, exchange or otherwise dispose of any of the properties or assets
     of the Issuer, including those included in the Pledged Assets, unless
     directed to do so by the Indenture Trustee with the prior written consent
     of the Insurer (unless an Insurer Default has occurred and is continuing);

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

          (iii) (A) permit the validity or effectiveness of this Indenture to be
     impaired, or permit the lien created by this Indenture to be amended,
     hypothecated, subordinated, terminated or discharged, or permit any Person
     to be released from any covenants or obligations with respect to the Notes
     under this Indenture except as may be expressly permitted hereby, (B)
     permit any lien, charge, excise, claim, security interest, mortgage or
     other encumbrance (other than the lien of this Indenture) to be created on
     or extend to or otherwise arise upon or burden the Pledged Assets or any
     part thereof or any interest therein or the proceeds thereof (other than
     tax liens, mechanics' liens and other liens that arise by operation of law,
     in each case on a Financed Vehicle and arising solely as a result of an
     action or omission of the related Obligor), (C) permit the lien created by
     this Indenture not to constitute a valid first priority (other than with
     respect to any such tax, mechanics' or other lien) security interest in the
     Pledged Assets; or

          (iv) dissolve or liquidate in whole or in part.

     SECTION 3.09. Annual Statement as to Compliance. The Issuer will deliver to
the Indenture Trustee and the Insurer, on or before April 30 of each year,
beginning on the first April 30 that is at least six months after the Closing
Date, an Officer's Certificate dated as of December 31 of the preceding year
stating, as to the Authorized Officer signing such Officer's Certificate, that:

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

          (ii) to the best of such Authorized Officer's knowledge, based on such
     review, the Issuer has complied with all conditions and covenants under
     this Indenture throughout such year, or, if there has been a default in

                                      20
<PAGE>

     the compliance of any such condition or covenant, specifying each such
     default known to such Authorized Officer and the nature and status thereof.

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

          (i) the Person (if other than the Issuer) formed by or surviving such
     consolidation or merger shall be a Person organized and existing under the
     laws of the United States or any State and shall expressly assume, by an
     indenture supplemental hereto, executed and delivered to the Indenture
     Trustee and the Insurer, in form and substance satisfactory to the
     Indenture Trustee and the Insurer (so long as no Insurer Default has
     occurred and is continuing), the due and punctual payment of the principal
     of and interest on all Notes and the performance or observance of every
     agreement and covenant of this Indenture and each other Basic Document on
     the part of the Issuer to be performed or observed, all as provided herein;

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

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

          (iv) the Issuer shall have received an Opinion of Counsel which shall
     be delivered to and shall be satisfactory to the Indenture Trustee and the
     Insurer to the effect that such consolidation or merger will not have any
     material adverse tax consequence to the Trust, the Insurer, any Noteholder
     or any Certificateholder;

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

          (vi) the Issuer shall have delivered to the Indenture Trustee and the
     Insurer an Officer's Certificate and an Opinion of Counsel (which shall
     describe the actions taken as required by clause (v) above or that no such
     actions will be taken) each stating that such consolidation or merger and
     such supplemental indenture comply with this Article III and that all
     conditions precedent herein provided for relating to such transaction have
     been compiled with (including any filings required by the Exchange Act);
     and

          (vii) so long as no Insurer Default shall have occurred and be
     continuing, the Issuer shall have given the Insurer written notice of such
     consolidation or merger at least 20 Business Days prior to the consummation
     of such action and shall have received the prior written approval of the
     Insurer of such consolidation or merger and the Issuer or the Person (if
     other than the Issuer) formed by or surviving such consolidation or merger
     has a net worth, immediately after such consolidation or merger, that is
     (A) greater than zero and (B) not less than the net worth of the Issuer
     immediately prior to giving effect to such consolidation or merger.

     (b) The Issuer shall not convey or transfer all or substantially all of its
properties or assets, including those included in the Pledged Assets, to any
Person (except as expressly permitted by the Basic Documents), unless:

          (i) the Person that acquires by conveyance or transfer the properties
     and assets of the Issuer shall (A) be a United States citizen or a Person
     organized and existing under the laws of the United States or any State,
     (B) expressly assume, by an indenture supplemental hereto, executed and
     delivered to the Indenture Trustee and the Insurer, in form and substance
     satisfactory to the Indenture Trustee and the Insurer (so long as no
     Insurer Default has occurred and is continuing), the due and punctual
     payment of the principal of and interest on all Notes and the performance
     or observance of every agreement and covenant of this Indenture and each
     other Basic Document on the part of the Issuer to be performed or observed,
     all as provided herein, (C) expressly agree by means of such supplemental
     indenture that all right, title and interest so conveyed or transferred
     shall be subject and subordinate to the rights of Noteholders, (D) unless
     otherwise provided in such

                                      21
<PAGE>

     supplemental indenture, expressly agree to indemnify, defend and hold
     harmless the Issuer against and from any loss, liability or expense arising
     under or related to this Indenture and the Notes and (E) expressly agree by
     means of such supplemental indenture that such Person (or if a group of
     Persons, then one specified Person) shall make all filings with the
     Commission (and any other appropriate Person) required by the Exchange Act
     in connection with the Notes;

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

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

          (iv) the Issuer shall have received an Opinion of Counsel which shall
     be delivered to and shall be satisfactory to the Indenture Trustee and the
     Insurer (so long as no Insurer Default shall have occurred and be
     continuing) to the effect that such conveyance or transference will not
     have any material adverse tax consequence to the Trust, the Insurer, any
     Noteholder or any Certificateholder;

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

          (vi) the Issuer shall have delivered to the Indenture Trustee and the
     Insurer an Officer's Certificate and an Opinion of Counsel (which shall
     describe the actions taken as required by clause (v) above or that no such
     actions will be taken) each stating that such conveyance or transference
     and such supplemental indenture comply with this Article Three and that all
     conditions precedent herein provided for relating to such transaction have
     been complied with (including any filings required by the Exchange Act);
     and

          (vii) so long as no Insurer Default shall have occurred and be
     continuing, the Issuer shall have given the Insurer written notice of such
     conveyance or transfer of properties or assets at least 20 Business Days
     prior to the consummation of such action and shall have received the prior
     written approval of the Insurer of such conveyance or transfer and the
     Person acquiring by conveyance or transference the properties or assets of
     the Issuer has a net worth, immediately after such conveyance or transfer,
     that is (A) greater than zero and (B) not less than the net worth of the
     Issuer immediately prior to giving effect to such conveyance or transfer.

     SECTION 3.11. Successor Transferee. (a) Upon any consolidation or merger of
the Issuer in accordance with Section 3.10(a), the Person formed by or surviving
such consolidation or merger (if other than the Issuer) shall succeed to, and be
substituted for, and may exercise every right and power of, the Issuer under
this Indenture with the same effect as if such Person had been named as the
Issuer herein.

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

     SECTION 3.12. No Other Business. The Issuer shall not engage in (i) any
business other than financing, purchasing, owning, selling and managing the
Receivables in the manner contemplated by this Indenture and the other Basic
Documents and activities incidental thereto or (ii) any other business or
activities as contemplated by Section 1.03 of the Trust Agreement.

     SECTION 3.13. Servicer's Obligations. The Issuer shall cause the Servicer
to comply with the Servicer's obligations under the Trust Agreement.

                                      22
<PAGE>

     SECTION 3.14. Restricted Payments. Except as expressly permitted by the
Basic Documents, the Issuer shall not, directly or indirectly, (i) pay any
dividend or make any distribution (by reduction of capital or otherwise),
whether in cash, property, securities or a combination thereof, to the Owner
Trustee or any owner of a beneficial interest in the Issuer or otherwise with
respect to any ownership or equity interest or security in or of the Issuer or
to the Servicer, (ii) redeem, purchase, retire or otherwise acquire for value
any such ownership or equity interest or security or (iii) set aside or
otherwise segregate any amounts for any such purpose; provided, however, that
the Issuer may make, or cause to be made, (A) distributions to the Servicer, the
Indenture Trustee, the Owner Trustee, the Insurer, the Noteholders and the
Certificateholders as contemplated by, and to the extent funds are available for
such purpose under, the Trust Agreement and (B) payments to the Indenture
Trustee and the Owner Trustee pursuant to Section 1(a)(ii) of the Administration
Agreement. The Issuer will not, directly or indirectly, make payments to or
distributions from the Collection Account except in accordance with this
Indenture and the other Basic Documents.

     SECTION 3.15. Notice of Events of Default. The Issuer agrees to give the
Indenture Trustee, the Insurer and each Rating Agency prompt written notice of
each Event of Default hereunder and each default on the part of the Servicer or
the Seller of their respective obligations under the Trust Agreement.

     SECTION 3.16. Further Instruments and Acts. Upon request of the Indenture
Trustee or the Insurer, the Issuer will execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper to
carry out more effectively the purpose of this Indenture.

     SECTION 3.17. Compliance with Laws. The Issuer shall comply with the
requirements of all applicable laws, the non-compliance with which would,
individually or in the aggregate, materially and adversely affect the ability of
the Issuer to perform its obligations under the Notes, this Indenture or any
other Basic Document.

     SECTION 3.18. Amendments of Trust Agreement. The Issuer shall not agree to
any amendment to Section 17.01 of the Trust Agreement to eliminate the
requirements thereunder that the Noteholders consent to amendments thereto as
provided therein.

                                  ARTICLE IV

                          SATISFACTION AND DISCHARGE

     SECTION 4.01. Satisfaction and Discharge of Indenture. This Indenture shall
cease to be of further effect with respect to the Notes except as to (i) rights
of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.05, 3.07,
3.08, 3.10, 3.11, 3.12, 3.17 and 3.18, (v) the rights, obligations and
immunities of the Indenture Trustee hereunder (including the rights of the
Indenture Trustee under Section 6.07 and the obligations of the Indenture
Trustee under Section 4.02), (vi) the rights of Noteholders as beneficiaries
hereof with respect to the property so deposited with the Indenture Trustee
payable to all or any of them and (vii) the obligation of the Indenture Trustee
to make claims under the Policy, which shall survive the Final Maturity Date of
the Class B Notes and extend through any preference period applicable with
respect to the Notes or any payments made in respect of the Notes, and the
Indenture Trustee, on demand of and at the expense of the Issuer, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture
with respect to the Notes, when

     (A) either

          (1) all Notes theretofore authenticated and delivered (other than (i)
     Notes that have been destroyed, lost or stolen and that have been replaced
     or paid as provided in Section 2.05 and (ii) Notes for whose payment money
     has theretofore been deposited in trust or segregated and held in trust by
     the Issuer and thereafter repaid to the Issuer or discharged from such
     trust, as provided in Section 3.03) have been delivered to the Indenture
     Trustee for cancellation and the Policy has expired and been returned to
     the Insurer for cancellation; or

                                      23
<PAGE>

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

          (i) have become due and payable,

          (ii) will become due and payable at the Final Maturity Date of the
     Class B Notes within one year, or

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

and the Issuer, in the case of clauses (i), (ii) or (iii) above, has irrevocably
deposited or caused to be irrevocably deposited with the Indenture Trustee cash
or Eligible Investments for such purpose, in an amount sufficient to pay and
discharge the entire indebtedness on such Notes not theretofore delivered to the
Indenture Trustee for cancellation when due to the Final Maturity Date of the
Class A-4 Notes and the Class B Notes or Redemption Date (if Notes shall have
been called for redemption pursuant to Section 12.01), as the case may be;

     (B) the Issuer has paid or performed or caused to be paid or performed all
amounts and obligations which the Issuer may owe to or on behalf of (1) the
Indenture Trustee for the benefit of the Noteholders under this Indenture or the
Notes and (2) the Insurer under this Indenture and the Basic Documents; and

     (C) the Issuer has delivered to the Indenture Trustee and the Insurer an
Officer's Certificate, an Opinion of Counsel and (if required by the TIA, the
Indenture Trustee) an Independent Certificate from a firm of certified public
accountants, each meeting the applicable requirements of Section 13.01(a) and,
subject to Section 13.02, each stating that all conditions precedent herein
provided for relating to the satisfaction and discharge of this Indenture have
been complied with and the Rating Agency Condition has been satisfied.

     SECTION 4.02. Application of Trust Money. All monies deposited with the
Indenture Trustee pursuant to Section 4.01 shall be held in trust and applied by
it, in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent, as the Indenture Trustee
may determine, to the Holders of the particular Notes for the payment or
redemption of which such monies have been deposited with the Indenture Trustee,
of all sums due and to become due thereon for principal and interest; but such
monies need not be segregated from other funds except to the extent required
herein or in the Trust Agreement or required by law.

     SECTION 4.03. Repayment of Monies Held by Paying Agent. In connection with
the satisfaction and discharge of this Indenture with respect to the Notes, all
monies then held by any Paying Agent other than the Indenture Trustee under the
provisions of this Indenture with respect to such Notes shall, upon demand of
the Issuer, be paid to the Indenture Trustee to be held and applied according to
Section 3.03 and thereupon such Paying Agent shall be released from all further
liability with respect to such monies.

                                   ARTICLE V

                          EVENTS OF DEFAULT; REMEDIES

     SECTION 5.01. Events of Default. "Event of Default," wherever used herein,
means any one of the following events (whatever the reason for such Event of
Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

     (a) default in the payment of any interest on any Note when the same
becomes due and payable and such default shall continue for a period of five
days after notice thereof is given to the Issuer, the Insurer and the Servicer;

                                      24
<PAGE>

     (b) default in the payment of any principal due and payable on a Class of
Notes on the Final Maturity Date for such Class of Notes and such default shall
continue for a period of five days after notice thereof is given to the Issuer,
the Insurer and the Servicer;

     (c) (i) default in the observance or performance of any covenant or
agreement of the Issuer made in this Indenture (other than a covenant or
agreement, a default in the observance or performance of which is elsewhere in
this Section specifically dealt with), and such default shall continue or not be
cured for a period of 90 days after notice thereof shall have been given, by
registered or certified mail, to the Issuer by the Indenture Trustee or the
Insurer or to the Issuer and the Indenture Trustee by the Holders of at least25%
of the Note Balances, acting together as a single class or (ii) any
representation or warranty made by the Issuer in this Indenture or in any
certificate delivered pursuant hereto or in connection herewith having been
incorrect in a material respect as of the time made, and such breach not having
been cured within 30 days after notice thereof is given to the Issuer by the
Indenture Trustee or the Insurer, or to the Issuer and the Indenture Trustee by
the holders of at least 25% of the Note Balances of the Notes acting together as
a single class;

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

     (e) the commencement by the Issuer of a voluntary case under any applicable
federal or state bankruptcy, insolvency or other similar law now or hereafter in
effect, or the consent by the Issuer to the entry of an order for relief in an
involuntary case under any such law, or the consent by the Issuer to the
appointment or taking possession by a receiver, liquidator, assignee, custodian,
trustee, sequestrator or similar official of the Issuer or for any substantial
part of the Pledged Assets, or the making by the Issuer of any general
assignment for the benefit of creditors, or the failure by the Issuer generally
to pay its debts as such debts become due, or the taking of action by the Issuer
in furtherance of any of the foregoing; provided, however that so long as no
Insurer Default has occurred and is continuing, neither the Indenture Trustee
nor the Noteholders may declare an Event of Default under the Indenture. So long
as an Insurer Default has not occurred and is continuing, an Event of Default
shall occur only upon delivery by the Insurer to the Indenture Trustee of notice
of the occurrence of an Event of Default. The failure to pay principal on a
class of Notes shall not result in the occurrence of an Event of Default until
the Final Maturity Date for such class of Notes.

     The Issuer shall deliver to the Indenture Trustee and the Insurer, within
five days after obtaining knowledge of the occurrence thereof, written notice in
the form of an Officer's Certificate of any event which with the giving of
notice or the lapse of time would become an Event of Default, its status and
what action the Issuer is taking or proposes to take with respect thereto.

     SECTION 5.02. Rights Upon Event of Default. (a) So long as no Insurer
Default has occurred and is continuing, if an Event of Default shall have
occurred and is continuing, then the Insurer shall have the right, but not the
obligation, upon prior written notice to each Rating Agency, to declare by
written notice to the Issuer, the Servicer and the Indenture Trustee that the
Notes become immediately due and payable, and upon any such declaration the
unpaid principal amount of the Notes, together with accrued and unpaid interest
thereon, shall become immediately due and payable. The Indenture Trustee will
have no discretion with respect to the acceleration of the Notes under the
foregoing circumstances. In the event of any such acceleration of the Notes, the
Indenture Trustee shall continue to make claims under the Policy with respect to
the Notes.

     (b) If an Insurer Default shall have occurred and be continuing and an
Event of Default specified in Section 5.01(a), (b), (c), (d) or (e) shall have
occurred and be continuing, the Indenture Trustee shall, if so requested in
writing by the Noteholders representing at least 66 2/3% of the aggregate Note
Balances of the Notes, upon prior written notice

                                      25
<PAGE>

to each Rating Agency, declare that the Notes become immediately due and
payable, and upon any such declaration the unpaid principal amount of the Notes,
together with accrued and unpaid interest thereon, shall become immediately due
and payable.

     (c) Following any Event of Default, the Insurer may elect to pay all or any
portion of the outstanding amount of the Notes, plus accrued interest thereon to
the date of payment.

     SECTION 5.03. Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee. (a) The Issuer covenants that, if the Notes are accelerated
following the occurrence of an Event of Default, the Issuer will, upon demand of
the Indenture Trustee, pay to the Indenture Trustee, for the benefit of the
Noteholders, the whole amount then due and payable on such Notes for principal
and interest, with interest upon the overdue principal, and, to the extent
payment at such rate of interest shall be legally enforceable, upon overdue
installments of interest, at the applicable interest rates and in addition
thereto such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses and
disbursements of the Indenture Trustee and its agents and counsel.

     (b) If an Event of Default shall have occurred and be continuing, the
Indenture Trustee shall (i) if no Insurer Default has occurred and is
continuing, at the direction of the Insurer, or (ii) if an Insurer Default shall
have occurred and be continuing, at the direction of the Noteholders
representing at least 66 2/3% of the Note Balances of the Notes, as more
particularly provided in Section 5.04, proceed to protect and enforce the rights
of the Noteholders, by such appropriate Proceedings as the Indenture Trustee
shall deem most effective to protect and enforce any such rights, whether for
the specific enforcement of any covenant or agreement in this Indenture or in
aid of the exercise of any power granted herein, or to enforce any other proper
remedy or legal or equitable right vested in the Indenture Trustee by this
Indenture or by law.

     (c) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest in
the Pledged Assets, Proceedings under Title 11 of the United States Code or any
other applicable federal or state bankruptcy, insolvency or other similar law,
or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial Proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the Issuer
or such other obligor, the Indenture Trustee, irrespective of whether the
principal of any Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Indenture Trustee shall
have made any demand pursuant to the provisions of this Section, shall be
entitled and empowered, by intervention in such Proceedings or otherwise:

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

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

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

                                      26
<PAGE>

          (iv) to file such proofs of claim and other papers or documents as may
     be necessary or advisable in order to have the claims of the Indenture
     Trustee or the Noteholders allowed in any judicial proceedings relative to
     the Issuer, its creditors and its property; and any trustee, receiver,
     liquidator, custodian or other similar official in any such Proceeding is
     hereby authorized by each of such Noteholders to make payments to the
     Indenture Trustee, and, in the event that the Indenture Trustee shall
     consent to the making of payments directly to such Noteholders, to pay to
     the Indenture Trustee such amounts as shall be sufficient to cover
     reasonable compensation to the Indenture Trustee, each predecessor
     Indenture Trustee and their respective agents, attorneys and counsel, and
     all other expenses and liabilities incurred by the Indenture Trustee and
     each predecessor Indenture Trustee except as a result of negligence or bad
     faith.

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

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

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

     SECTION 5.04. Remedies. (a) If (i) an Event of Default shall have occurred
and be continuing, the Indenture Trustee shall (subject to Section5.04(b) below
and Section 5.05), if no Insurer Default has occurred and is continuing, at the
direction of the Insurer, or (ii) if an Event of Default specified in Section
5.01(a), (b), (c), (d) or (e) shall have occurred and be continuing, the
Indenture Trustee shall (subject to Section 5.04(b) below and Section 5.05), if
an Insurer Default has occurred and is continuing, at the direction of the
Noteholders representing at least 66 2/3% of the Note Balances of the Notes,
take one or more of the following actions as so directed:

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

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

          (iii) exercise any remedies of a secured party under the UCC and any
     other remedy available to the Indenture Trustee and take any other
     appropriate action to protect and enforce the rights and remedies of the
     Indenture Trustee on behalf of the Noteholders under this Indenture or the
     Notes;

          (iv) sell or cause the Servicer to otherwise liquidate the Pledged
     Assets or any portion thereof or rights or interests therein, at one or
     more public or private sales called and conducted in any manner permitted
     by law and deliver the proceeds of such sale or liquidation to the
     Indenture Trustee for distribution in accordance with the terms of this
     Indenture; and

          (v) maintain possession of the Pledged Assets.

                                      27
<PAGE>

          (b) Notwithstanding the foregoing,

               (i) in the event that the Indenture Trustee is acting at the
     direction of the Insurer, so long as an Insurer Default has occurred and is
     continuing, if an Event of Default specified in Section 5.01(a), (b) or (c)
     shall have occurred and be continuing, the Insurer shall not have the right
     to cause the Indenture Trustee or the Servicer to, and neither the
     Indenture Trustee nor the Servicer shall, liquidate the Pledged Assets in
     whole or in part if the proceeds of such sale or liquidation would not be
     sufficient to pay all outstanding principal of and accrued interest on the
     Notes; and

               (ii) in the event that the Indenture Trustee is acting at the
     direction of the Noteholders representing at least 66 2/3% of the Note
     Balances of the Notes, the Noteholders shall not have the right to direct
     the Indenture Trustee or the Servicer to, and neither the Indenture Trustee
     nor the Servicer shall, liquidate the Pledged Assets in whole or in part
     unless an Event of Default as specified in Section 5.01(d) or (e) shall
     have occurred and be continuing and in any case the Insurer shall have
     failed to make a payment required under the Policy in accordance with its
     terms.

     (c) In determining the sufficiency or insufficiency of the proceeds of a
sale or liquidation of the Pledged Assets to pay all amounts required pursuant
to Section 5.04(b)(i) above, the Indenture Trustee may, but need not, at the
sole expense of the Issuer obtain and rely upon an opinion of an Independent
investment banking or accounting firm of national reputation as to the
feasibility of such proposed action and as to the sufficiency of the Pledged
Assets for such purpose.

     SECTION 5.05. Optional Preservation of the Receivables. If the Notes have
been declared to be due and payable under Section 5.02 following an Event of
Default and such declaration and its consequences have not been rescinded and
annulled, the Indenture Trustee shall, absent direction to the contrary from the
Insurer or the Noteholders pursuant to Section 5.04, maintain possession of the
Pledged Assets.

     SECTION 5.06. Priorities. (a) If the Notes have been declared to be due and
payable under Section 5.02 following an Indenture Event of Default and such
declaration and its consequences have not been rescinded and annulled, any money
collected by the Indenture Trustee with respect to the Pledged Assets, the Notes
or the Certificates pursuant to this Article or otherwise and any money that may
then be held or thereafter received by the Indenture Trustee with respect to the
Pledged Assets, the Notes or the Certificates (excluding any payments made under
the Policy), shall be applied pursuant to Section 9.04(a).

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

     SECTION 5.07. Limitation of Suits. No Holder of any Note shall have any
right to institute any Proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

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

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

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

                                      28
<PAGE>

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

          (v) no direction inconsistent with such written request has been given
     to the Indenture Trustee during such 60-day period by the Holders of a
     majority of the Note Balances of the Notes, voting together as a single
     class; and

          (vi) an Insurer Default shall have occurred and be continuing.

It is understood and intended that no one or more Noteholders shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture to affect, disturb or prejudice the rights of any other
Noteholders or to obtain or to seek to obtain priority or preference over any
other Holders or to enforce any right under this Indenture, except in the manner
herein provided.

     In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Noteholders, each
representing less than a majority of the Note Balances of the Notes, the
Indenture Trustee in its sole discretion may determine that action, if any,
shall be taken, notwithstanding any other provisions of this Indenture and any
such action shall be binding on all parties.

     SECTION 5.08. Unconditional Rights of Noteholders to Receive Principal and
Interest. Notwithstanding any other provisions in this Indenture, the Holder of
any Note shall have the right, which is absolute and unconditional, to receive
payments of Monthly Interest and Monthly Principal on such Note on or after the
respective due dates thereof expressed in such Note or in this Indenture (or, in
the case of redemption, on or after the Redemption Date) and to institute suit
for the enforcement of any such payment, and such right shall not be impaired
without the consent of such Holder.

     SECTION 5.09. Restoration of Rights and Remedies. If the Indenture Trustee,
the Insurer or any Noteholder has instituted any Proceeding to enforce any right
or remedy under this Indenture and such Proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee, the Insurer or to such Noteholder, then and in every such case the
Issuer, the Indenture Trustee, the Insurer and the Noteholders shall, subject to
any determination in such Proceeding, be restored severally and respectively to
their former positions hereunder, and thereafter all rights and remedies of the
Indenture Trustee and the Noteholders shall continue as though no such
Proceeding had been instituted.

     SECTION 5.10. Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee, the Insurer or to the
Noteholders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

     SECTION 5.11. Delay or Omission Not a Waiver. No delay or omission of the
Indenture Trustee, the Insurer or any Holder of any Note to exercise any right
or remedy accruing upon any Default or Event of Default shall impair any such
right or remedy or constitute a waiver of any such Default or Event of Default
or an acquiescence therein. Every right and remedy given by this Article Five or
by law to the Indenture Trustee, the Insurer or to the Noteholders may be
exercised from time to time, and as often as may be deemed expedient, by the
Indenture Trustee, the Insurer or by the Noteholders, as the case may be.

     SECTION 5.12. Control by Noteholders. The Holders of a majority of the Note
Balances of the Notes shall have the right to direct the time, method and place
of conducting any Proceeding for any remedy available to the Indenture Trustee
with respect to the Notes or exercising any trust or power conferred on the
Indenture Trustee; provided that:

                                      29
<PAGE>

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

          (ii) any direction to the Indenture Trustee to sell or liquidate the
     Pledged Assets shall be subject to the terms of Section 5.04; and

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

Notwithstanding the rights of Noteholders set forth in this Section, subject to
Section 6.01, the Indenture Trustee need not take any action that it determines,
in its sole discretion, might involve it in liability or might materially
adversely affect the rights of any Noteholders not consenting to such action.

     SECTION 5.13. Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.02, the
Insurer or the Noteholders representing not less than a majority of the Note
Balances of the Notes with the consent of the Insurer may waive any past Default
or Event of Default and its consequences except a Default (a) in the payment of
or interest on any of the Notes or (b) in respect of a covenant or provision
hereof that cannot be modified or amended without the consent of the Holder of
each Note, as applicable. In the case of any such waiver, the Issuer, the
Indenture Trustee, the Insurer and the Noteholders shall be restored to their
former positions and rights hereunder, respectively; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent
thereto.

     Upon any such waiver, such Default shall cease to exist and be deemed to
have been cured and not to have occurred, and any Event of Default arising
therefrom shall be deemed to have been cured and not to have occurred, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other Default or Event of Default or impair any right consequent thereto.

     SECTION 5.14. Undertaking for Costs. All parties to this Indenture agree,
and each Holder of any Note by such Holder's acceptance thereof shall be deemed
to have agreed, that any court may in its discretion require, in any suit for
the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to (i) any suit instituted by the
Indenture Trustee, (ii) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 10% of the Note
Balances of the Notes or (iii) any suit instituted by any Noteholder for the
enforcement of the payment of principal of or interest on any Note on or after
the respective due dates expressed in such Note and in this Indenture (or, in
the case of redemption, on or after the Redemption Date).

     SECTION 5.15. Waiver of Stay or Extension Laws. The Issuer covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead or in and manner whatsoever, claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, that may affect the covenants or the performance of this Indenture; and
the Issuer (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantages of any such law, and covenants that it will not
hinder, delay or impede the execution of any power herein granted to the
Indenture Trustee, but will suffer and permit the execution of every such power
as though no such law had been enacted.

     SECTION 5.16. Action on Notes. The Indenture Trustee's right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Pledged Assets or upon any
of the assets of the Issuer. Any money or property collected by the Indenture
Trustee shall be applied in accordance with Section 5.06.

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     SECTION 5.17. Performance and Enforcement of Certain Obligations. (a)
Promptly following a request from the Indenture Trustee to do so and at the
Administrator's expense, the Issuer shall take all such lawful action as the
Indenture Trustee may request to compel or secure the performance and observance
by the Seller and the Servicer as applicable, of each of their obligations to
the Issuer under or in connection with the Trust Agreement in accordance with
the terms thereof, and to exercise any and all rights, remedies, powers and
privileges lawfully available to the Issuer under or in connection with the
Trust Agreement to the extent and in the manner directed by the Indenture
Trustee, including the transmission of notices of default on the part of the
Seller or the Servicer thereunder and the institution of legal or administrative
actions or proceedings to compel or secure performance by the Seller or the
Servicer of each of their obligations under the Trust Agreement.

     (b) If the Indenture Trustee is the Controlling Party and if an Event of
Default has occurred and is continuing, the Indenture Trustee may, and at the
direction (which direction shall be given in writing and may include a
facsimile) of the Holders of 66 2/3% of the Note Balances of the Notes shall,
exercise all rights, remedies, powers, privileges and claims of the Issuer
against the Seller or the Servicer under or in connection with the Trust
Agreement, including the right or power to take any action to compel or secure
performance or observance by the Seller or the Servicer of each of their
obligations to the Issuer thereunder and to give any consent, request, notice,
direction, approval, extension or waiver under the Trust Agreement, and any
right of the Issuer to take such action shall be suspended.

                                  ARTICLE VI

                             THE INDENTURE TRUSTEE

     SECTION 6.01. Duties of Indenture Trustee. (a) If an Event of Default has
occurred and is continuing, and of which the Indenture Trustee shall have actual
knowledge, the Indenture Trustee shall exercise the rights and powers vested in
it by this Indenture and with the same degree of care and skill in their
exercise as a prudent person would exercise or use under the circumstances in
the conduct of such person's own affairs; provided, however, that if the
Indenture Trustee shall assume the duties of the Servicer pursuant to Section
3.07(e), the Indenture Trustee in performing such duties shall use the degree of
care and skill customarily exercised by a prudent institutional servicer with
respect to automobile retail installment sales contracts that it services for
itself or others.

     (b) Except during the continuance of an Event of Default of which a
Responsible Officer of the Indenture Trustee shall have actual knowledge or
written notice:

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

          (ii) in the absence of bad faith on its part, the Indenture Trustee
     may conclusively rely, as to the truth of the statements and the
     correctness of the opinions expressed therein, upon certificates or
     opinions furnished to the Indenture Trustee and conforming to the
     requirements of this Indenture; however, the Indenture Trustee shall
     examine the certificates and opinions to determine whether or not they
     conform to the requirements of this Indenture and the other Basic Documents
     to which the Indenture Trustee is a party; provided, however, that the
     Indenture Trustee shall not be responsible for the accuracy or content of
     any of the aforementioned documents and the Indenture Trustee shall have no
     obligation to verify, re-compute or recalculate any numerical information
     provided to it pursuant to the Basic Documents.

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

          (i) this paragraph does not limit the effect of Section 6.01(b);

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<PAGE>

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

          (iii) the Indenture Trustee shall not be liable with respect to any
     action it takes or omits to take in good faith in accordance with a
     direction received by it pursuant to Section 5.12.

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

     (e) The Indenture Trustee shall not be liable for interest on any money
received by it.

     (f) Money held in trust by the Indenture Trustee need not be segregated
from other funds except to the extent required by law or the terms of this
Indenture or the Trust Agreement.

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

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

     (i) The Indenture Trustee shall, and hereby agrees that it will (i) perform
all of the obligations and duties required of it under the Trust Agreement and
(ii) hold the Policy in trust, and will hold any proceeds of any claim on the
Policy in trust solely for application as provided in the Trust Agreement.

     (j) Except as otherwise required or permitted by the TIA, nothing contained
herein shall be deemed to authorize the Indenture Trustee to engage in any
business operations or any activities other than those set forth in this
Indenture. Specifically, the Indenture Trustee shall have no authority to engage
in any business operations, acquire any assets other than those specifically
included in the Pledged Assets under this Indenture or otherwise vary the assets
held by the Trust. Similarly, the Indenture Trustee shall have no discretionary
duties other than performing those ministerial acts set forth above necessary to
accomplish the purpose of this Trust as set forth in this Indenture.

     (k) The Indenture Trustee shall not be liable in its individual capacity
with respect to any action taken, suffered or omitted to be taken by it in good
faith in accordance with this Indenture or at the direction of a majority of the
Note Balances of Notes, relating to the time, method and place of conducting any
proceeding for any remedy available to the Indenture Trustee, or exercising or
omitting to exercise any trust or power conferred upon the Indenture Trustee,
under this Indenture.

     (l) The Indenture Trustee shall not be required to take notice or be deemed
to have notice or knowledge of any Default or Event of Default unless a
Responsible Officer of the Indenture Trustee shall have received written notice
thereof. In the absence of receipt of such notice, the Indenture Trustee may
conclusively assume that there is no Default or Event of Default.

     (m) Subject to the other provisions of this Indenture, the Indenture
Trustee shall have no duty (i) to see to any recording, filing, or depositing of
this Agreement or any agreement referred to herein or any financing statement or
continuation statement evidencing a security interest, or to see to the
maintenance of any such recording or filing or depositing or to any rerecording,
refiling or redepositing of any thereof, (ii) to see to any insurance, (iii) to
see to the payment or discharge of any tax, assessment, or other governmental
charge or any lien or encumbrance of any kind owing with respect to, assessed or
levied against, any part of the Pledged Assets, or (iv) to confirm or verify the
contents

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<PAGE>

of any reports or certificates delivered to the Indenture Trustee pursuant to
this Indenture believed by the Indenture Trustee to be genuine and to have been
signed or presented by the proper party or parties.

     (n) Anything in this Agreement to the contrary notwithstanding, in no event
shall the Indenture Trustee be liable for special, indirect or consequential
loss or damage of any kind whatsoever (including but not limited to lost
profits), even if the Indenture Trustee has been advised of the likelihood of
such loss or damage regardless of the form of action.

     SECTION 6.02. Rights of Indenture Trustee.

     (a) Except as otherwise provided in the second succeeding sentence, the
Indenture Trustee may conclusively rely and shall be protected in acting upon or
refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, note, direction, demand,
election or other paper or document believed by it to be genuine and to have
been signed or presented by the proper person. The Indenture Trustee need not
investigate any fact or matter stated in the document. Notwithstanding the
foregoing, the Indenture Trustee, subject to Section 6.01(b)(ii) upon receipt of
all resolutions, certificates, statements, opinions, reports, documents, orders
or other instruments furnished to the Indenture Trustee that shall be
specifically required to be furnished pursuant to any provision of this
Indenture, shall examine them to determine whether they comply as to form to the
requirements of this Indenture.

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

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

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

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

     (f) The Indenture Trustee shall be under no obligation to exercise any of
the trusts or powers vested in it by this Indenture or to institute, conduct or
defend any litigation hereunder or in relation hereto at the request, order or
direction of any of the Noteholders, pursuant to the provisions of this
Indenture, unless such Noteholders shall have offered to the Indenture Trustee
reasonable security or indemnity against the costs, expenses and liabilities
which may be incurred therein or thereby; nothing contained herein shall,
however, relieve the Indenture Trustee of the obligation, during the continuance
of an Event of Default of which a Responsible Officer of the Indenture Trustee
shall have actual knowledge, to exercise such of the rights and powers vested in
it by this Indenture, and to use the same degree of care and skill in their
exercise, as a prudent person would exercise or use under the circumstances in
the conduct of such person's own affairs.

     (g) The Indenture Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond or
other paper or document, unless requested in writing to do so by a majority of
Noteholders; provided, however, that if the payment within a reasonable time to
the Indenture Trustee of the costs, expenses or liabilities likely to be
incurred by it in the making of such investigation is, in the opinion of the
Indenture Trustee, not reasonably assured to the Indenture

                                      33
<PAGE>

Trustee by the security afforded to it by the terms of this Agreement, the
Indenture Trustee may require reasonable indemnity against such cost, expense or
liability as a condition to taking any such action.

     (h) The right of the Indenture Trustee to perform any discretionary act
enumerated in this Indenture shall not be construed as a duty, and the Indenture
Trustee shall not be answerable for other than its willful misconduct,
negligence or bad faith in the performance of such act.

     SECTION 6.03. Individual Rights of Indenture Trustee. The Indenture Trustee
in its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Issuer or its Affiliates with the same rights it
would have if it were not Indenture Trustee. Any Paying Agent, Note Registrar,
co-registrar or co-paying agent may do the same with like rights. However, the
Indenture Trustee is required to comply with Sections 6.11 and 6.12.

     SECTION 6.04. Indenture Trustee's Disclaimer. The Indenture Trustee shall
not be responsible for and makes no representation as to the validity or
adequacy of this Indenture, the Pledged Assets or the Notes, it shall not be
accountable for the Issuer's use of the proceeds from the Notes, and it shall
not be responsible for any statement of the Issuer in this Indenture or in any
document issued in connection with the sale of the Notes or in the Notes other
than the Indenture Trustee's certificate of authentication.

     SECTION 6.05. Notice of Defaults. If a Default occurs and is continuing and
a Responsible Officer of the Indenture Trustee has actual knowledge or has
received written notice thereof, the Indenture Trustee shall mail to each
Noteholder and the Insurer notice of the Default within 90 days after it occurs.
Except in the case of a Default in payment of principal of or interest on any
Note (including payments pursuant to the redemption of Notes), the Indenture
Trustee may withhold the notice if and so long as a committee of its Responsible
Officers in good faith determines that withholding the notice is in the
interests of Noteholders.

     SECTION 6.06. Reports by Indenture Trustee to Holders. The Indenture
Trustee shall deliver to each Noteholder such information as may be required to
enable such holder to prepare its federal and state income tax returns.

     SECTION 6.07. Compensation and Indemnity. The Issuer shall cause the
Servicer to pay to the Indenture Trustee from time to time reasonable
compensation for its services. The Indenture Trustee's compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Issuer
shall cause the Servicer to reimburse the Indenture Trustee for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection, in
addition to the compensation for its services. Such expenses shall include the
reasonable compensation and expenses and disbursements and advances of the
Indenture Trustee's agents, counsel, accountants and experts. The Issuer shall,
or shall cause the Administrator to, indemnify the Indenture Trustee against any
and all loss, liability or expense (including attorneys' fees) incurred by it in
connection with the administration of this trust and the performance of its
duties hereunder. The Indenture Trustee shall notify the Issuer and the
Administrator promptly of any claim for which it may seek indemnity. Failure by
the Indenture Trustee to so notify the Issuer and the Administrator shall not
relieve the Issuer or the Administrator of its obligations hereunder. The Issuer
shall, or shall cause the Administrator to, defend any such claim, and the
Indenture Trustee may have separate counsel and the Issuer shall, or shall cause
the Administrator to, pay the fees and expenses of such counsel. Neither the
Issuer nor the Administrator need reimburse any expense or indemnify against any
loss, liability or expense incurred by the Indenture Trustee through the
Indenture Trustee's own willful misconduct, negligence or bad faith.

     The Issuer's obligations to the Indenture Trustee pursuant to this Section
shall survive the resignation or removal of the Indenture Trustee and the
discharge of this Indenture. When the Indenture Trustee incurs expenses after
the occurrence of a Default specified in Section 5.01(e) or (f) with respect to
the Issuer, the expenses are intended to constitute expenses of administration
under Title 11 of the United States Code or any other applicable federal or
state bankruptcy, insolvency or similar law.

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<PAGE>

         SECTION 6.08. Replacement of Indenture Trustee. The Indenture Trustee
may resign at any time by so notifying the Issuer, the Servicer and the Insurer.
The Issuer, may, with the consent of the Insurer, and, at the request of the
Insurer shall, remove the Indenture Trustee, unless an Insurer Default shall
have occurred and be continuing, if:

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

                  (ii)  a court having jurisdiction in the premises in respect
         of the Indenture Trustee in an involuntary case or proceeding under
         federal or state banking or bankruptcy laws, as now or hereafter
         constituted, or any other applicable federal or state bankruptcy,
         insolvency or other similar law, shall have entered a decree or order
         granting relief or appointing a receiver, liquidator, assignee,
         custodian, trustee, conservator, sequestrator (or similar official) for
         the Indenture Trustee or for any substantial part of the Indenture
         Trustee's property, or ordering the winding-up or liquidation of the
         Indenture Trustee's affairs, provided any such decree or order shall
         have continued unstayed and in effect for a period of 30 consecutive
         days;

                  (iii) the Indenture Trustee commences a voluntary case under
         any federal or state banking or bankruptcy laws, as now or hereafter
         constituted, or any other applicable federal or state bankruptcy,
         insolvency or other similar law, or consents to the appointment of or
         taking possession by a receiver, liquidator, assignee, custodian,
         trustee, conservator, sequestrator or other similar official for the
         Indenture Trustee or for any substantial part of the Indenture
         Trustee's property, or makes any assignment for the benefit of
         creditors or fails generally to pay its debts as such debts become due
         or takes any corporate action in furtherance of any of the foregoing;
         or

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

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

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

         If a successor Indenture Trustee does not take office within 30 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuer or the Holders of a majority of the Note Balances
of the Notes may petition any court of competent jurisdiction for the
appointment of a successor Indenture Trustee.

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

         Any resignation or removal of the Indenture Trustee and appointment of
a successor Indenture Trustee pursuant to the provisions of this Section shall
not become effective until acceptance of appointment by the successor Indenture
Trustee pursuant to this Section and payment of all fees and expenses owed to
the outgoing Indenture Trustee. Notwithstanding the replacement of the Indenture
Trustee pursuant to this Section, the retiring Indenture Trustee shall be
entitled to payment or reimbursement of such amounts as such Person is entitled
pursuant to Section 6.07.

         SECTION 6.09. Successor Indenture Trustee by Merger. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another corporation
or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Indenture Trustee; provided, that
such corporation or banking association shall be otherwise qualified and
eligible under

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<PAGE>

Section 6.11. The Indenture Trustee shall provide the Insurer and each Rating
Agency prompt notice of any such transaction.

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

         SECTION 6.10. Appointment of Co-Indenture Trustee or Separate Indenture
Trustee.

         (a) Notwithstanding any other provision of this Indenture, at any time,
for the purpose of meeting any legal requirement of any jurisdiction in which
any part of the Pledged Assets may at the time be located, the Indenture Trustee
shall have the power and may execute and deliver all instruments to appoint one
or more Persons to act as a co-trustee or co-trustees, jointly with the
Indenture Trustee, or separate trustee or separate trustees, of all or any part
of the Trust, and to vest in such Person or Persons, in such capacity and for
the benefit of the Noteholders, such title to the Pledged Assets, or any part
hereof, and, subject to the other provisions of this Section, such powers,
duties, obligations, rights and trusts as the Indenture Trustee may consider
necessary or desirable. No co-trustee or separate trustee hereunder shall be
required to meet the terms of eligibility as a successor Indenture Trustee under
Section 6.11 and no notice to Noteholders of the appointment of any co-trustee
or separate trustee shall be required under Section 6.08.

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

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

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

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

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

         (d) Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee, its agent or attorney-in-fact with full power and authority,
to the extent not prohibited by law, to do any lawful act under or in

                                       36
<PAGE>

respect of this Indenture on its behalf and in its name. If any separate trustee
or co-trustee shall die, become incapable of acting, resign or be removed, all
of its estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Indenture Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee. Notwithstanding anything to the
contrary in this Indenture, the appointment of any separate trustee or
co-trustee shall not relieve the Indenture Trustee of its obligations and duties
under this Indenture.

         SECTION 6.11. Eligibility. The Indenture Trustee shall at all times
satisfy the requirements of TIA Section 310(a). The Indenture Trustee hereunder
shall at all times be a financial institution organized and doing business under
the laws of the United States of America or any state, authorized under such
laws to exercise corporate trust powers, whose long term unsecured debt is rated
at least ____ by _______ and shall have a combined capital and surplus of at
least $50,000,000 or shall be a member of a bank holding system to the aggregate
combined capital and surplus of which is $50,000,000 and subject to supervision
or examination by federal or state authority, provided that the Trustee's
separate capital and surplus shall at all times be at least the amount required
by Section 310(a)(2) of the TIA. If such Person publishes reports of condition
at least annually, pursuant to law or to the requirements of a supervising or
examining authority, then for the purposes of this Section 6.11, the combined
capital and surplus of such Person shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 6.11, the Trustee shall resign immediately in the
manner and with the effect specified in Section 6.08. The Indenture Trustee
shall comply with TIA Section 310(b); provided, however, that there shall be
excluded from the operation of TIA Section 310(b)(1) any indenture or indentures
under which other securities of the Issuer are outstanding if the requirements
for such exclusion set forth in TIA Sections 310(b)(1) are met.

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

         SECTION 6.13. Representations and Warranties of Indenture Trustee. The
Indenture Trustee hereby makes the following representations and warranties on
which the Issuer and Noteholders shall rely:

         (a) the Indenture Trustee is a corporation duly organized, validly
existing and in good standing under the laws of its place of incorporation; and

         (b) the Indenture Trustee has full power, authority and legal right to
execute, deliver, and perform this Indenture and shall have taken all necessary
action to authorize the execution, delivery and performance by it of this
Indenture.

                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

         SECTION 7.01. Issuer to Furnish Indenture Trustee Names and Addresses
of Noteholders. The Issuer will furnish or cause to be furnished to the
Indenture Trustee (i) not more than five days after the earlier of (a) each
Record Date and (b) three months after the last Record Date, a list, in such
form as the Indenture Trustee may reasonably require, of the names and addresses
of the Noteholders as of such Record Date and (ii) at such other times as the
Indenture Trustee may request in writing, within 10 days after receipt by the
Issuer of any such request, a list of similar form and content as of a date not
more than ten days prior to the time such list is furnished; provided, however,
that so long as the Indenture Trustee is the Note Registrar, no such list shall
be required to be furnished. The Indenture Trustee or, if the Indenture Trustee
is not the Note Registrar, the Issuer shall furnish to the Insurer in writing at
such times as the Insurer may reasonably request a copy of the list.

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<PAGE>

         SECTION 7.02. Preservation of Information; Communications to
Noteholders.

         (a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Noteholders contained in
the most recent list furnished to the Indenture Trustee as provided in Section
7.01 and the names and addresses of Noteholders received by the Indenture
Trustee in its capacity as Note Registrar. The Indenture Trustee may destroy any
list furnished to it as provided in such Section 7.01 upon receipt of a new list
so furnished.

         (b) Noteholders may communicate pursuant to TIA Section 312(b) with
other Noteholders with respect to their rights under this Indenture or under the
Notes.

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

         SECTION 7.03.  Reports by Issuer.  (a) The Issuer shall:

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

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

                  (iii) supply to the Indenture Trustee (and the Indenture
         Trustee shall transmit by mail to all Noteholders described in TIA
         Section 313(c)) such summaries of any information, documents and
         reports required to be filed by the Issuer pursuant to clauses (i) and
         (ii) of this Section 7.03(a) as may be required by rules and
         regulations prescribed from time to time by the Commission.

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

         SECTION 7.04. Reports by Indenture Trustee. To the extent that any of
the events described in TIA Section 313(a) shall have occurred, the Indenture
Trustee shall, within 60 days after each June 15 beginning with June 15,
____, mail to the Issuer, the Insurer and each Noteholder as required by TIA
Section 313(c) a brief report dated as of such date that complies with TIA
Section 313(a). The Indenture Trustee also shall comply with TIA Section 313(b).

                                  ARTICLE VIII

                               INTENTIONALLY BLANK

                                   ARTICLE IX

                  DISTRIBUTIONS; STATEMENTS TO THE NOTEHOLDERS

         SECTION 9.01. Collection Account. The Issuer shall cause the Servicer
to establish the Collection Account with the Indenture Trustee or another
Eligible Bank as a segregated trust account in the name of the Indenture Trustee
for the benefit of the Secured Parties. The amounts in the Collection Account
shall be invested in Eligible Investments

                                      38
<PAGE>

that mature not later than the Business Day prior to the next succeeding Payment
Date and such Eligible Investments shall be held to maturity. The Indenture
Trustee (or its custodian) shall (i) maintain possession of any negotiable
instruments or securities evidencing Eligible Investments until the time of sale
or maturity and each certificated security or negotiable instrument evidencing
an Eligible Investment shall be endorsed in blank or to the Indenture Trustee or
registered in the name of the Indenture Trustee and (ii) cause any Eligible
Investment represented by an uncertificated security to be registered in the
name of the Indenture Trustee.

         SECTION 9.02. Collections. The Indenture Trustee shall review the
Servicer's Certificate prepared by the Servicer immediately upon receipt thereof
pursuant to Section 9.02 of the Trust Agreement.

         For any Payment Date on which there will not be sufficient Available
Funds to make the distributions required pursuant to Sections 9.04(a)(i) through
(vi), the Indenture Trustee shall withdraw or direct the Servicer to withdraw
from the Spread Account, to the extent of the Available Spread Amount, an amount
equal to such deficiency and promptly deposit such amount in the Collection
Account. If such deficiency exceeds the Available Spread Amount, the Indenture
Trustee shall notify the Insurer of the amount of such excess deficiency. The
Indenture Trustee shall promptly (and in any event not later than 1:00 p.m., New
York City time, on the Business Day preceding the Payment Date) deliver a Notice
for Payment as defined in the Policy (appropriately completed) to the Fiscal
Agent with respect to the Policy. The Insurer is required pursuant to Section
10.03 and the terms of the Policy to pay the amount of such excess deficiency of
Monthly Interest and Monthly Principal, up to the Policy Amount.

         The Indenture Trustee shall, immediately upon receipt, deposit in the
Collection Account any funds received by the Indenture Trustee in respect of
funds drawn under the Policy from the Insurer.

         If the Available Funds for a Payment Date are insufficient to pay
current and past due Insurance Premiums on the Policy, or any amounts owing to
the Insurer pursuant to the Insurance Agreement including, without limitation,
reimbursements, indemnities, fees and expenses, plus accrued interest thereon,
to the Insurer, the Servicer shall notify the Indenture Trustee of such
deficiency, and the applicable Available Spread Amount, if any, then on deposit
in the Spread Account (after giving effect to any withdrawal to satisfy a
deficiency in Monthly Interest or Monthly Principal) shall be available to cover
such deficiency.

         SECTION 9.03. Purchase Amounts. Pursuant to the Trust Agreement, the
Servicer and the Seller have agreed to remit to the Collection Account not later
than the Determination Date, the aggregate Purchase Amount for such Collection
Period pursuant to Sections 7.02 and 8.07 of the Trust Agreement.

         SECTION 9.04. Distributions to Parties. (a) On each Payment Date, the
Indenture Trustee shall apply or cause to be applied the Available Funds in the
Collection Account for the prior Collection Period, (plus any amounts withdrawn
from the Spread Account or drawn on the Policy pursuant to Section 9.02), to
make the following payments in the listed order of priority:

                  (i)   Without duplication, an amount equal to the sum of (y)
         Outstanding Advances on all Receivables that became Defaulted
         Receivables during the prior Collection Period, plus (z) Outstanding
         Advances which the Servicer determines to be unrecoverable pursuant to
         Section 9.05 of the Trust Agreement, to the Servicer;

                  (ii)  To the extent not previously distributed to the
         Servicer, the Monthly Servicing Fee, including any such overdue Monthly
         Servicing Fee, to the Servicer;

                  (iii) Class A Monthly Interest to the Class A Noteholders;

                  (iv)  Monthly Principal to the Class A Noteholders, in
         accordance with the Principal Payment Sequence;

                  (v)   Class B Monthly Interest to the Class B Noteholders;

                                       39
<PAGE>

                  (vi)   Monthly Principal to the Class B Noteholders in
         accordance with the Principal Payment Sequence (only after the
         Principal Balances of the Class A Notes have been repaid in full);

                  (vii)  The Insurance Premium, including any overdue Insurance
         Premium, plus accrued interest thereon at the rate provided in the
         Insurance Agreement, to the Insurer;

                  (viii) The amount of Recoveries of Advances, to the Servicer
         (to the extent not applied pursuant to (i) above on or prior to such
         Payment Date);

                  (ix)   The aggregate amount of all unreimbursed draws made on
         the Policy in respect of Monthly Interest and Monthly Principal and any
         other amounts payable to the Insurer under the Insurance Agreement,
         plus accrued interest thereon at the rate provided in the Insurance
         Agreement, to the Insurer;

                  (x)    The balance for deposit in the Spread Account. The
         rights of the Certificateholders to receive distributions from the
         Spread Account are described in Sections 10.02(e) and (f).

(b)(i) If on any Payment Date there are not sufficient Available Funds (together
with amounts withdrawn from the applicable Spread Account and/or the Policy) to
pay the distributions required by Section 9.04(a)(iii) through (vi), the
Available Funds payable under Section 9.04(a)(iii) through (vi) shall be
allocated first to Class A Noteholders pari passu for the payment of Class A
Monthly Interest, and second for Class A Monthly Principal. The amount of
Monthly Interest allocated to Class A Noteholders shall be based upon the amount
of interest due each class of Class A Noteholders and the amount of Monthly
Principal allocated to Class A Noteholders shall be based upon the relative
outstanding Note Balance of each class of Class A Notes then Outstanding.

                  (ii)   Notwithstanding the foregoing, if on any Payment Date,
         the Certificateholder exercises its option to cause a disposition of
         the remaining corpus of the Trust pursuant to Section 16.02 of the
         Trust Agreement: (a) the Available Funds and amounts withdrawn from the
         Spread Account or drawn on the Policy in respect only of Monthly
         Interest and Monthly Principal with respect to the immediately
         preceding Payment Date as determined in accordance with Sections 9.02
         and 9.04 shall be distributed to the Noteholders on such Payment Date;
         (b) the Policy will not be available to pay any shortfall of Monthly
         Interest or Monthly Principal after a prepayment of the Note Balances
         pursuant to this Section 9.04(a)(ii); and (c) any remaining Pledged
         Assets (including all remaining Available Spread Amounts) shall be paid
         to the Noteholders on such Payment Date until the Note Balances shall
         have been reduced to zero. Any amounts in excess thereof shall be
         remitted to the Certificateholder pursuant to the Trust Agreement.

                  (iii)  In making such payments the Indenture Trustee shall be
         entitled to rely (without investigation, confirmation or recalculation)
         upon all information and calculations contained in the Servicer's
         Certificate delivered to the Indenture Trustee pursuant to Section 8.09
         of the Trust Agreement.

                  (iv)   All monthly payments shall be made by wire transfer of
         immediately available funds to the Noteholder of record on the
         preceding Record Date. Notwithstanding the foregoing, the final payment
         on the Notes shall be made only against presentation and surrender of
         the Notes at the office or agency then maintained by the Indenture
         Trustee in accordance with Section 3.02 of this Indenture.

         (c) On each Payment Date, if the Servicer has reported to the Indenture
Trustee in the Servicer's Certificate for any Collection Period that an Obligor
or an Obligor's representative or successor successfully shall have asserted a
claim or defense under bankruptcy law or similar laws for the protection of
creditors generally (including the avoidance of a preferential transfer under
bankruptcy law) that results in a liability to such Obligor for monies
previously collected and remitted to the Indenture Trustee and not otherwise
netted against collections pursuant to Section 9.02, the Indenture Trustee shall
make all payments in respect of such claims or defenses out of the amounts on
deposit in the Collection Account with respect to such Collection Period before
making the distributions required by paragraph (a) of this Section 9.04.

                                      40
<PAGE>

         (d) If the Servicer has failed to provide the Indenture Trustee with
the notice required pursuant to Section 9.02, the Indenture Trustee may
calculate Monthly Interest and Monthly Principal and apply funds, if any, in the
Collection Account as of the last day of the Collection Period, to make a
distribution of Monthly Interest and Monthly Principal to the Noteholders.

         SECTION 9.05. Servicer Advances. The Servicer is required to make
certain Advances pursuant to Section 9.05 of the Trust Agreement. If the
Servicer shall determine that an Outstanding Advance with respect to any
Receivable shall not be recoverable, the Servicer shall be entitled to
reimbursement from any collections made on other Receivables pursuant to Section
9.04(a)(i), and Outstanding Advances with respect to such Receivable shall be
reduced accordingly.

         SECTION 9.06. Net Deposits. For so long as BVAC is the Servicer, BVAC
(in whatever capacity) may make the remittances with respect to any Payment Date
pursuant to Section 9.02 above, net of amounts to be distributed to itself or
its delegee under Section 13.06 (also in whatever capacity) pursuant to Section
9.04, if it determines pursuant to Section 9.02 that there is no deficiency in
Available Funds for such Payment Date. Nonetheless, the Servicer shall account
for all of the above described amounts as if such amounts were deposited and
distributed.

         SECTION 9.07.  Intentionally Blank.

         SECTION 9.08.  Intentionally Blank.

         SECTION 9.09. Payahead Account. The Servicer shall establish the
Payahead Account with the Indenture Trustee or another Eligible Bank in the name
of the Indenture Trustee on behalf of the Obligors and the Noteholders as their
interests may appear pursuant to Section 9.09 of the Trust Agreement. Investment
income or interest earned on the Payahead Account shall be remitted to the
Servicer at least monthly, or as frequently as the Servicer may reasonably
request. On or prior to each Payment Date, the Servicer shall transfer or the
Indenture Trustee (as instructed in the Servicer's Certificate) shall transfer
(a) from the Collection Account to the Payahead Account, in immediately
available funds, all Payaheads received by the Servicer and previously deposited
to the Collection Account during the Collection Period as described in Section
8.02(b) of the Trust Agreement; and (b) from the Payahead Account to the
Collection Account, in immediately available funds, the aggregate amount of
previously deposited Payaheads to be applied to the related Scheduled Payments
on Precomputed Receivables for the related Collection Period or prepayments for
the related Collection Period, pursuant to Section 8.02(b) of the Trust
Agreement, each in the amounts set forth in the Servicer's Certificate delivered
on the related Determination Date. A single, net transfer between the Payahead
Account and the Collection Account may be made. Any amount deposited in any
Payahead Account shall not constitute Available Funds under Section 9.02. Any
amount deposited to the Collection Account from a Payahead Account pursuant to
Section 9.09(b) shall be included in Available Funds under Section 9.02.

         SECTION 9.10. Release of Pledged Assets. (a) Subject to the payment of
its fees and expenses pursuant to Section 6.07, the Indenture Trustee may, and
when required by the provisions of this Indenture shall, execute instruments to
release property from the lien of this Indenture, or convey the Indenture
Trustee's interest in the same, in a manner and under circumstances that are not
inconsistent with the provisions of this Indenture. No party relying upon an
instrument executed by the Indenture Trustee as provided in this Article shall
be bound to ascertain the Indenture Trustee's authority, inquire into the
satisfaction of any conditions precedent or see to the application of any
monies.

         (b) The Indenture Trustee shall, at such time as there are no Notes
Outstanding and all sums due the Indenture Trustee pursuant to Section 6.07 have
been paid, release any remaining portion of the Pledged Assets that secured the
Notes from the lien of this Indenture and release to the Issuer or any other
Person entitled thereto any funds then on deposit in the Trust Accounts. The
Indenture Trustee shall release property from the lien of this Indenture
pursuant to this Section 9.10(b) only upon receipt of an Issuer Request
accompanied by an Officer's Certificate, an Opinion of Counsel and (if required
by the TIA) Independent Certificates in accordance with TIA Sections 314(c) and
314(d)(1) meeting the applicable requirements of Section 13.01.

                                      41
<PAGE>

         SECTION 9.11. Opinion of Counsel. The Indenture Trustee shall receive
at least seven days' notice when requested by the Issuer to take any action
pursuant to Section 9.10(a), accompanied by copies of any instruments involved,
and the Indenture Trustee shall also require, as a condition to such action, an
Opinion of Counsel, in form and substance satisfactory to the Indenture Trustee
(and not at the expense of the Indenture Trustee), stating the legal effect of
any such action, outlining the steps required to complete the same, and
concluding that all conditions precedent to the taking of such action have been
complied with and such action will not materially and adversely impair the
security for the Notes or the rights of the Noteholders in contravention of the
provisions of this Indenture; provided, however, that such Opinion of Counsel
shall not be required to express an opinion as to the fair value of the Pledged
Assets. Counsel rendering any such opinion may rely, without independent
investigation, on the accuracy and validity of any certificate or other
instrument delivered to the Indenture Trustee in connection with any such
action.

                                    ARTICLE X

                               CREDIT ENHANCEMENT

         SECTION 10.01. Subordination. The payment of Monthly Interest and
Monthly Principal to Class B Noteholders shall be subordinated to the payment of
Class A Monthly Interest and Class A Monthly Principal on any Payment Date.

         SECTION 10.02. Spread Account. (a) On or prior to the Closing Date, the
Indenture Trustee shall establish and maintain a segregated trust account with
the Indenture Trustee or in the corporate trust department of another Eligible
Bank referred to herein as the "Spread Account." The Spread Account shall be
maintained in the name of the Indenture Trustee. The Spread Account and any
amounts on deposit therein shall be part of the Pledged Assets and shall be for
the benefit of Secured Parties, as their respective interests may appear herein;
provided, however, that the interest of the Insurer therein shall be
subordinated to the interests of the Noteholders as provided herein.

         (b) Funds on deposit in the Spread Account shall be invested in
Eligible Investments in the same manner and subject to the same requirements and
limitations as the investment of funds in the Collection Account pursuant to
Section 9.01, including the limitation that Eligible Investments mature not
later than the Business Day prior to the next succeeding Payment Date; provided,
however, that no such limitation on the maturity of Eligible Investments shall
apply if the Indenture Trustee obtains the benefit of a liquidity facility or
similar arrangement from a commercial bank with an Approved Rating or other
provider approved in advance in writing by the Insurer and the Administrative
Agent, with respect to funds in the Spread Account (a "Spread Account Facility")
and _________________ and _______ confirm in writing that the rating of the
Notes will not be lowered or withdrawn as a result of eliminating or modifying
the limitation on the maturity of Eligible Investments in respect of the Spread
Account. For purposes of determining the availability of funds or the balance in
the Spread Account for any reason under this Indenture, investment earnings on
such funds shall be deemed to be available or on deposit only to the extent that
the aggregate of such amounts, plus the funds on deposit in such Spread Account,
do not exceed the Required Spread Amount.

         (c) If on any Payment Date the amount of Available Funds is
insufficient to make the distributions required by Sections 9.04(a)(i) through
(vi), the Indenture Trustee shall withdraw or cause to be withdrawn from the
Spread Account and deposited in the Collection Account the lesser of (i) the
entire Available Spread Amount and (ii) the amount necessary to make up such
deficiency to pay any deficiency in permitted reimbursements of Outstanding
Advances pursuant to Section 9.04(a)(i), the Monthly Servicing Fee, Monthly
Interest and Monthly Principal (prior to making any draw on the Policy), all as
provided in Sections 9.02 and 9.04 and the Policy.

         (d) On each Payment Date, all distributions made pursuant to Section
9.04(a)(x) shall be deposited into the Spread Account; provided, however, that
the Accelerated Principal Amount has been paid in full to the Noteholders.

         (e) If the amount on deposit in the Spread Account, after giving effect
to the distributions set forth in Section 9.04 (including, without limitation,
payment of amounts due and owing to the Insurer) is greater than the Required
Spread Amount on such Payment Date (after giving effect to the payment of the
Accelerated Principal Amount in

                                      42
<PAGE>

Monthly Principal), the amount of such excess shall be distributed by the
Indenture Trustee to the Owner Trustee, or as the Owner Trustee shall direct in
accordance with the Trust Agreement to the Certificateholders. Amounts properly
distributed to the Owner Trustee or Certificateholders pursuant to this Section,
either directly without deposit in the Spread Account or from excess amounts in
the Spread Account shall be deemed released from the security interest of the
Indenture Trustee on behalf of the Secured Parties.

         (f) The Certificateholders are permitted to purchase the Receivables
from the Issuer when the Pool Balance has been reduced to ___% or less of the
Original Pool Balance pursuant to Section 16.02 of the Trust Agreement. Upon
discharge and satisfaction of this Indenture pursuant to Section 16.01, amounts
remaining in the Spread Account, after payment of any amounts due and owing to
the Noteholders and to the Insurer, shall be distributed by the Indenture
Trustee to the Owner Trustee, or as the Owner Trustee shall direct in accordance
with the Trust Agreement to the Certificateholders and such amounts shall not be
subject to any claims or rights of any Noteholder.

         SECTION 10.03. Policy. (a) The Insurer is required under the terms of
the Policy to pay Monthly Interest and Monthly Principal up to the Policy Amount
in the event of any deficiency of Available Funds to pay such amounts (after
permitted reimbursements of related Outstanding Advances and payment of the
related Monthly Servicing Fee) not covered by amounts withdrawn from the Spread
Account, as determined pursuant to Section 9.02 to the Indenture Trustee for
credit to the Collection Account on the later of (a) 12:00 noon, New York City
time, on the Payment Date and (b) 12:00 noon, New York City time, on the
Business Day immediately succeeding presentation to the Fiscal Agent of the
Indenture Trustee's demand therefor. Any demand for payment pursuant to Section
9.02 to the Fiscal Agent received by the Fiscal Agent on a Business Day after
1:00 p.m., New York City time, or on any day that is not a Business Day, will be
deemed to be received by the Fiscal Agent at 9:00 a.m., New York City time, on
the next Business Day. Notwithstanding the foregoing, on a Dissolution Payment
Date, the obligations of the Insurer under the Policy shall be limited in
accordance with Section 9.04(b)(ii). The Indenture Trustee hereby agrees on
behalf of the Noteholders (and each Noteholder, by its acceptance of its Notes,
hereby agrees) for the benefit of the Insurer that the Indenture Trustee shall
recognize that to the extent the Insurer makes a payment under the Policy,
either directly or indirectly (as by paying through the Indenture Trustee), to
the Noteholders, the Insurer will be entitled to be subrogated to the rights of
the Noteholders to the extent of such payments under the Policy. Any rights of
subrogation acquired by the Insurer as a result of any payment made under the
Policy shall, in all respects, be subordinate and junior in right of payment to
the prior indefeasible payment in full of all amounts due the Indenture Trustee
on account of payments due under the Notes pursuant to Section 9.04 hereof.

         (b) The Insurer shall pay any Preference Amounts, but only after there
shall have been delivered to the Insurer (x) a certified copy of a final order
of the court exercising jurisdiction in the Insolvency Proceeding to the effect
that the Indenture Trustee is required to return any such payment or portion
thereof prior to the Termination Date (as defined in the Policy) of the Policy
because such payment was voided under applicable law, with respect to which
order the appeal period has expired without an appeal having been filed (the
"Final Order"), (y) an assignment, in the form of Exhibit D to the Policy,
irrevocably assigning to the Insurer all rights and claims of such Indenture
Trustee relating to or arising under such Avoided Payment and (z) a Notice for
Payment in the form of Exhibit A to the Policy appropriately completed and
executed by the Indenture Trustee. Such payment shall be disbursed to the
receiver, conservator, debtor-in-possession or trustee in bankruptcy named in
the Final Order and not to the Indenture Trustee directly. In no event shall the
Insurer pay more than one Insured Payment in respect of any Preference Amount.

         The Indenture Trustee, for itself and on behalf of the Noteholders,
agrees that the Insurer may at any time during the continuation of any
proceeding relating to a Final Order direct all matters relating to such Final
Order, including, without limitation, the direction of any appeal of any order
relating to such Final Order and the posting of any surety, supersedeas or
performance bond pending any such appeal. In addition and without limitation of
the foregoing, the Insurer shall be subrogated, to the extent of the Insured
Payments, to the rights of BVAC, the Servicer, the Seller, the Issuer, the
Indenture Trustee and the Noteholders in the conduct of any preference claim,
including, without limitation, all rights of any party to any adversarial
proceeding or action with respect to any court order issued in connection with
any such preference claim.

                                      43
<PAGE>

                                   ARTICLE XI

                             SUPPLEMENTAL INDENTURES

         SECTION 11.01.  Supplemental Indentures Without Consent of Noteholders.

         (a) Without the consent of the Holders of any Notes but with the
consent of the Insurer and with prior notice to each Rating Agency, the Issuer
and the Indenture Trustee, when authorized by an Issuer Order, and the other
parties hereto at any time and from time to time, may enter into one or more
indentures supplemental hereto (which shall conform to the provisions of the TIA
as in force at the date of the execution thereof), in form satisfactory to the
Indenture Trustee, for any of the following purposes:

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

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

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

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

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

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

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

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

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

                                       44
<PAGE>

         SECTION 11.02. Supplemental Indentures With Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may,
with prior notice to each Rating Agency, with the consent of the Insurer and
with the consent of the Holders of not less than a majority of the Note Balances
of the Notes, by Act of such Holders delivered to the Issuer and the Indenture
Trustee, enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to, or changing in any manner or eliminating
any of the provisions of, this Indenture or of modifying in any manner the
rights of the Noteholders under this Indenture; provided, however, that, subject
to the express rights of the Insurer under the Basic Documents, no such
supplemental indenture shall, without the consent of the Holder of each
Outstanding Note affected thereby:

         (a) change the date of payment of any installment of principal of or
interest on any Note, or reduce the principal amount thereof, the interest rate
thereon or the Redemption Price with respect thereto, or change any place of
payment where, or the coin or currency in which, any Note or the interest
thereon is payable;

         (b) impair the right to institute suit for the enforcement of the
provisions of this Indenture requiring the application of funds available
therefor, as provided in Article V, to the payment of any such amount due on the
Notes on or after the respective due dates thereof (or, in the case of
redemption, on or after the Redemption Date);

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

         (d) modify or alter the provisions of the second proviso to the
definition of the term "Outstanding";

         (e) reduce the percentage of the Note Balances of the Notes, the
consent of the Holders of which is required to direct the Indenture Trustee to
sell or liquidate the Pledged Assets pursuant to Section 5.04;

         (f) decrease the percentage of the Note Balances of the Notes required
to amend this Indenture or the other Basic Documents;

         (g) permit the creation of any lien ranking prior to or on a parity
with the lien created by this Indenture with respect to any part of the Pledged
Assets or, except as otherwise permitted or contemplated herein, terminate the
lien created by this Indenture on any property at any time subject hereto or
deprive the Holder of any Note of the security provided by the lien created by
this Indenture.

         The Indenture Trustee may in its discretion determine whether or not
any Notes would be affected by any supplemental indenture and any such
determination shall be conclusive upon the Holders of all Notes, whether
theretofore or thereafter authenticated and delivered hereunder. The Indenture
Trustee shall not be liable for any such determination made in good faith.

         It shall not be necessary for any act of Noteholders under this Section
to approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such act shall approve the substance thereof.

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

         SECTION 11.03. Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by
this Indenture, the Indenture Trustee shall be entitled to receive, and subject
to Sections 6.01 and 6.02 shall be fully

                                       45
<PAGE>

protected in relying upon, an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture. The
Indenture Trustee may, but shall not be obligated to, enter into any such
supplemental indenture that affects the Indenture Trustee's own rights, duties,
liabilities or immunities under this Indenture or otherwise.

         SECTION 11.04. Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and be deemed to be modified and amended in accordance therewith with
respect to the Notes affected thereby, and the respective rights, limitations of
rights, obligations, duties, liabilities and immunities under this Indenture of
the parties hereto and the Noteholders shall thereafter be determined, exercised
and enforced hereunder subject in all respects to such modifications and
amendments, and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture
for any and all purposes.

         SECTION 11.05. Conformity With Trust Indenture Act. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article shall conform to the requirements of the Trust Indenture Act as then in
effect so long as this Indenture shall then be qualified under the Trust
Indenture Act.

         SECTION 11.06. Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

                                   ARTICLE XII

                               REDEMPTION OF NOTES

         SECTION 12.01. Redemption. In the event that the Certificateholder
pursuant to Section 16.02 of the Trust Agreement purchases the corpus of the
Trust, the Notes are subject to redemption in whole, but not in part, on the
Payment Date on which such repurchase occurs, for a purchase price equal to the
Redemption Price; provided, however, that the Issuer has available funds
sufficient to pay the Redemption Price. The Seller, the Servicer or the Issuer
shall furnish the Insurer and each Rating Agency notice of such redemption. If
the Notes are to be redeemed pursuant to this Section 12.01, the Servicer or the
Issuer shall furnish notice of such election to the Indenture Trustee not later
than 20 days prior to the Redemption Date and the Issuer shall deposit with the
Indenture Trustee in the Collection Account the Redemption Price of the Notes to
be redeemed whereupon all such Notes shall be due and payable on the Redemption
Date upon the furnishing of a notice complying with Section 12.02 to each Holder
of the Notes.

         SECTION 12.02. Form of Redemption Notice. Notice of redemption under
Section 12.01 shall be given by the Indenture Trustee by first-class mail,
postage prepaid, mailed not less than five days prior to the applicable
Redemption Date to each Holder of Notes, as of the close of business on the
Record Date preceding the applicable Redemption Date, at such Holder's address
appearing in the Note Register. In addition, the Administrator shall notify the
Insurer and Rating Agencies upon the redemption of any Class of Notes, pursuant
to Section 1(a)(i)(AA) of the Administration Agreement.

         All notices of redemption shall state:

                  (i)   the Redemption Date;

                  (ii)  the Redemption Price; and

                                       46
<PAGE>

                  (iii) the place where such Notes are to be surrendered for
         payment of the Redemption Price (which shall be the office or agency of
         the Issuer to be maintained as provided in Section 3.02).

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

         SECTION 12.03. Notes Payable on Redemption Date. The Notes or portions
thereof to be redeemed shall, following notice of redemption (if any) as
required by Section 12.02, on the Redemption Date become due and payable at the
Redemption Price and (unless the Issuer shall default in the payment of the
Redemption Price) no interest shall accrue on the Redemption Price for any
period after the date to which accrued interest is calculated for purposes of
calculating the Redemption Price.

                                  ARTICLE XIII

                                  MISCELLANEOUS

         SECTION 13.01. Compliance Certificates and Opinions, etc. (a) Upon any
application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture
Trustee (i) an Officer's Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been
complied with, (ii) an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with and (iii)
(if required by the TIA) an Independent Certificate from a firm of certified
public accountants meeting the applicable requirements of this Section and TIA
Sections 314(c) and 314(d)(1). Notwithstanding the foregoing, in the case of any
such application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture, no additional
certificate or opinion need be furnished.

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

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

                  (ii)  a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

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

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

         (b) (i) Prior to the deposit of any Pledged Assets or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property subject to the lien created by this Indenture, the
Issuer shall, in addition to any obligation imposed in Section 13.01(a) or
elsewhere in this Indenture, furnish to the Indenture Trustee and the Insurer an
Officer's Certificate certifying or stating the opinion of the signer thereof as
to the fair value (within 90 days of such deposit) to the Issuer of the Pledged
Assets or other property or securities to be so deposited.

                  (ii)  Whenever the Issuer is required to furnish to the
         Indenture Trustee and the Insurer an Officer's Certificate certifying
         or stating the opinion of any signer thereof as to the matters
         described in clause (i) above, the Issuer shall also deliver to the
         Indenture Trustee and the Insurer an Independent Certificate as to the
         named

                                       47
<PAGE>

         matters, if the fair value to the Issuer of the property to be so
         deposited and of all other such property made the basis of any such
         withdrawal or release since the commencement of the then-current fiscal
         year of the Issuer, as set forth in the Officer's Certificates
         delivered pursuant to clause (i) above and this clause (ii), is 10% or
         more of the Note Balances of the Notes, but such Officer's Certificate
         need not be furnished with respect to any property so deposited, if the
         fair value thereof to the Issuer as set forth in the related Officer's
         Certificate is less than $25,000 or less than one percent of the Note
         Balances of the Notes.

                  (iii) Whenever any property or securities are to be released
         from the lien created by this Indenture, the Issuer shall also furnish
         to the Indenture Trustee and the Insurer an Officer's Certificate
         certifying or stating the opinion of each person signing such
         certificate as to the fair value (within 90 days of such release) of
         the property or securities proposed to be released and stating that in
         the opinion of such person the proposed release will not impair the
         security created by this Indenture in contravention of the provisions
         hereof.

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

         SECTION 13.02. Form of Documents Delivered to Indenture Trustee. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

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

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

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

                                       48
<PAGE>

         SECTION 13.03.  Acts of Noteholders.

         (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders in person or by agents
duly appointed in writing; and except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments are
delivered to the Indenture Trustee, and, where it is hereby expressly required,
to the Issuer. Such instrument or instruments (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the "Act" of the
Noteholders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 6.01) conclusive in
favor of the Indenture Trustee and the Issuer, if made in the manner provided in
this Section.

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

         (c) The ownership of Notes shall be proved by the Note Register and the
record date applicable to any solicitation for an Act of the Noteholders shall
comply with Section 316(c) of the TIA.

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

         SECTION 13.04. Notices, etc., to Indenture Trustee, Issuer, Insurer and
Rating Agencies.

         (a) Any request, demand, authorization, direction, notice, consent,
waiver or Act of Noteholders or other documents provided or permitted by this
Indenture shall be in writing and if such request, demand, authorization,
direction, notice, consent, waiver or Act of Noteholders is to be made upon,
given or furnished to or filed with:

                  (i)   the Indenture Trustee by any Noteholder or by the Issuer
         shall be sufficient for every purpose hereunder if in writing,
         personally delivered, sent by facsimile transmission and confirmed or
         mailed by overnight service, to or with the Indenture Trustee at its
         Corporate Trust Office;

                  (ii)  the Issuer by the Indenture Trustee or by any Noteholder
         shall be sufficient for every purpose hereunder if in writing,
         personally delivered, sent by facsimile transmission and confirmed or
         mailed by overnight service, to the Issuer addressed to: Bay View
         ____-_ ____-_, in care of ______ _____ (Delaware), as Owner Trustee,
         ___________________________, ______________, _____________
         _______________, Attention: _________________________________________,
         or at any other address furnished in writing to the Indenture Trustee
         by the Issuer; or

                  (iii) the Insurer by the Issuer or the Indenture Trustee shall
         be sufficient for any purpose hereunder if in writing, personally
         delivered, sent by facsimile transmission and confirmed or mailed by
         overnight service, to the Insurer addressed to:
         _________________________, _______________, ______________________.

         (b) Notices required to be given to the Rating Agencies by the Issuer,
the Indenture Trustee or the Owner Trustee shall be in writing, personally
delivered, sent by facsimile transmission and confirmed or mailed by overnight
service, to (i) in the case of _____________, at the following address:
_______________________________, ______________, ________________, ________,
________ _____ and (ii) in the case of _________________, at the following
address: __________________________________,_________________________,
_________, ________, Attention: ____________________________________; or as to
each of the foregoing, at such other address as shall be designated by written
notice to the other parties.

                                       49
<PAGE>

         SECTION 13.05. Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at his address as it appears on the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. In any case where notice to Noteholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so mailed
to any particular Noteholder shall affect the sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner herein
provided shall conclusively be presumed to have been duly given.

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

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

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

         SECTION 13.06. Alternate Payment and Notice Provisions. Notwithstanding
any provision of this Indenture or any of the Notes to the contrary, the Issuer
may enter into any agreement with any Holder of a Note providing for a method of
payment, or notice by the Indenture Trustee or any Paying Agent to such Holder,
that is different from the methods provided for in this Indenture for such
payments or notices. The Issuer will furnish to the Indenture Trustee a copy of
each such agreement and the Indenture Trustee will cause payments to be made and
notices to be given in accordance with such agreements.

         SECTION 13.07. Conflict With Trust Indenture Act. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is
required to be included in this indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control.

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

         SECTION 13.08. Effect of Headings and Table of Contents. The Article
and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.

         SECTION 13.09. Successors and Assigns. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents.

         SECTION 13.10. Separability. In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

         SECTION 13.11. Benefits of Indenture. The Insurer and its successors
and assigns shall be a third-party beneficiary to the provisions of this
Indenture, and shall be entitled to rely upon and directly to enforce such
provisions of this Indenture so long as no Insurer Default shall have occurred
and be continuing. Nothing in this Indenture or in the Notes, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder, and

                                       50
<PAGE>

the Noteholders, and any other party secured hereunder, and any other Person
with an ownership interest in any part of the Pledged Assets, any benefit or any
legal or equitable right, remedy or claim under this Indenture. The Insurer may
disclaim any of its rights and powers under this Indenture, but not its duties
and obligations under the Policy, upon delivery of a written notice to the
Indenture Trustee.

         SECTION 13.12. Legal Holidays. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date on which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

         SECTION 13.13. Governing Law. This Indenture shall be construed in
accordance with the laws of the state of New York and the obligations, rights,
and remedies of the parties under this Indenture shall be determined in
accordance with such laws.

         SECTION 13.14. Counterparts. This Indenture may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

         SECTION 13.15. Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which may be counsel to the Indenture Trustee or any other counsel reasonably
acceptable to the Indenture Trustee and the Insurer) to the effect that such
recording is necessary either for the protection of the Noteholders or any other
Person secured hereunder or for the enforcement of any right or remedy granted
to the Indenture Trustee under this Indenture.

         SECTION 13.16. Trust Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or
of any successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity. For all purposes of
this Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Articles Six, Seven and Eight of the Trust
Agreement.

         SECTION 13.17. No Petition. The parties hereto, by entering into this
Indenture, and each Noteholder, by accepting a Note or a beneficial interest in
a Note, hereby covenant and agree that they will not at any time institute
against the Seller or the Issuer, or join in any institution against the Seller
or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any United States Federal or
state bankruptcy or similar law in connection with any obligations relating to
the Notes, this Indenture or any of the other Basic Documents.

         SECTION 13.18. Inspection. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee or of the
Insurer, during the Issuer's normal business hours, to examine all the books of
account, records, reports and other papers of the Issuer, to make copies and
extracts therefrom, to cause such books to be audited by independent certified
public accountants, and to discuss the Issuer's affairs, finances and accounts
with the Issuer's officers, employees and independent certified public
accountants, all at such reasonable times and as often as may be reasonably
requested. The Indenture Trustee and the Insurer shall and shall cause their
respective representatives to hold in confidence all such information except to
the extent disclosure may be required by law (and

                                       51
<PAGE>

all reasonable applications for confidential treatment are unavailing) and
except to the extent that the Indenture Trustee or the Insurer may reasonably
determine that such disclosure is consistent with its obligations hereunder.

         SECTION 13.19. Limitation of Liability of Owner Trustee.
Notwithstanding anything contained herein to the contrary, this instrument has
been countersigned by the Owner Trustee not in its individual capacity but
solely in its capacity as Owner Trustee of the Issuer and in no event shall the
Owner Trustee in its individual capacity or any beneficial owner of the Issuer
have any liability for the representations, warranties, covenants, agreements or
other obligations of the Issuer hereunder, as to all of which recourse shall be
had solely to the assets of the Issuer. For all purposes of this Indenture, in
the performance of any duties or obligations of the Issuer hereunder, the Owner
Trustee shall be subject to, and entitled to the benefits of, the terms and
provisions of Articles Eight, Nine, Thirteen and Fifteen of the Trust Agreement.

         SECTION 13.20. Certain Matters Regarding the Insurer. So long as an
Insurer Default shall not have occurred and be continuing, the Insurer shall
have the right to exercise all rights, including voting rights, which the
Noteholders or Certificateholders are entitled to exercise pursuant to this
Indenture, without any consent of such Noteholders or Certificateholders;
provided, however, that without the consent of each Noteholder and
Certificateholder affected thereby, the Insurer shall not exercise such rights
to amend this Indenture in any manner that would (i) reduce the amount of, or
delay the timing of, collections of payments on the Receivables or distributions
which are required to be made on any Note or Certificate, (ii) adversely affect
in any material respect the interests of the Holders of any Notes or
Certificates Instruments, or (iii) alter the rights of any such Holder to
consent to such amendment.

         Notwithstanding any provision in this Indenture to the contrary, in the
event an Insurer Default shall have occurred and be continuing, the Insurer
shall not have the right to take any action under this Agreement or to control
or direct the actions of the Trust, the Seller, the Indenture Trustee or the
Owner Trustee pursuant to the terms of this Indenture, nor shall the consent of
the Insurer be required with respect to any action (or waiver of a right to take
action) to be taken by the Trust, the Seller, the Indenture Trustee, the Owner
Trustee or the Noteholders or the Certificateholders; provided, that the consent
of the Insurer shall be required at all times with respect to any amendment of
this Indenture.

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

                                                     BAY VIEW ____-_ OWNER TRUST

                                                     By:

not in its individual capacity but solely on behalf of the Issuer as Owner
Trustee under the Trust Agreement

                                                     By:
                                                     Name:
                                                     Title:

                                                     [INDENTURE TRUSTEE]

not in its individual capacity but solely as Indenture Trustee

                                                     By:
                                                     Name:
                                                     Title:

                                       52
<PAGE>

                                   EXHIBIT A-1

                            [FORM OF CLASS A-1 NOTE]

PRINCIPAL IN RESPECT OF THIS CLASS A-1 NOTE IS DISTRIBUTABLE AS SET FORTH
HEREIN. ACCORDINGLY, THE UNPAID PRINCIPAL AMOUNT OF THE FRACTIONAL INTEREST
EVIDENCED HEREBY AT ANY TIME MAY BE LESS THAN THE ORIGINAL PRINCIPAL AMOUNT SET
FORTH HEREIN.

Unless this Note is presented by an authorized representative of The Depository
Trust Company, a New York corporation ("DTC"), to the issuer or its agent for
registration of transfer, exchange or payment, and any Certificate issued is
registered in the name of Cede & Co. or in such other name as 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 thereof, Cede & Co., has an
interest herein.

PRINCIPAL IN RESPECT OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN.

                          BAY VIEW ______ OWNER TRUST
              _____% CLASS A-1 AUTOMOBILE RECEIVABLE BACKED NOTE

         Evidencing the indebtedness of the Bay View ____-___ Owner Trust, a
         Delaware Business Trust, secured by the Pledged Assets, as defined
         below, including a pool of simple and precomputed interest installment
         loan and security agreements and installment sales contracts secured by
         new and used automobiles, light trucks and vans.

         (This Note does not represent an interest in BVAC Securitization
         Corporation nor an interest in or obligation of any of its affiliates.
         Neither this Note nor the underlying Receivables, as defined below, are
         insured or guaranteed by any government agency).

NUMBER ____                                                       $_____________
                                                          CUSIP ________________

         Bay View ____-___ Owner Trust , a Delaware Business Trust, for value
received, hereby promises to pay to the order of [____________] ("the
Noteholder") or its registered assigns, the principal sum of
____________________ dollars ($___________), which amount shall be payable in
the amounts and at the times set forth in the Indenture dated as of ______ ____,
____ (the "Indenture"; such term to include any amendment, restatement,
supplement or other modification thereof or thereto) provided, however, that the
entire unpaid amount of this Note shall be due and payable on or
before__________, ____. However, principal with respect to the Notes may be paid
earlier or later under certain limited circumstances under the Indenture. The
Issuer will pay interest on this Note at the Class A-1 Interest Rate. Such
interest shall be payable in the manner and at the times set forth in the
Indenture. To the extent not otherwise defined herein, the capitalized terms
used herein have the meanings assigned to them in the Indenture. This Note is
issued under and is subject to the terms, provisions, and conditions of the
Indenture, to which the holder of this Note by virtue of the acceptance hereof
assents and by which such holder is bound.

         This Note is secured by the Pledged Assets. The Pledged Assets consist
of a pool of simple and precomputed interest loan and security agreements and
installment sales contracts for new and used automobiles, light-duty trucks,
motorcycles, recreational vehicles and vans (the "Receivables"), all monies paid
thereon, and all monies due thereon, including Accrued Interest (but excluding
Accrued Interest paid on or prior to the Closing Date with respect to such
Receivables), security interests in the vehicles financed thereby, certain bank
accounts and the proceeds thereof, all

                                      A-1
<PAGE>

documents contained in the Receivable Files, any property that shall have
secured a Receivable and that shall have been acquired by the Indenture Trustee
on behalf of the Noteholder, any Liquidation Proceeds, any rights of the Issuer
in proceeds from claims or refunds of premiums on physical damage, lender's
single interest, credit life, disability and hospitalization insurance policies,
if any, covering vehicles financed thereby and the obligors thereunder, the
interest of the Issuer in recourse to dealers relating to certain of the
Receivables, the proceeds of all of the foregoing and amounts on deposit from
time to time in the Spread Account for the benefit of the Noteholder, and the
Policy for the benefit of the Noteholder.

         Under the Indenture, the Issuer will pay, on the fifteenth calendar day
of each month, or if such day is not a Business Day, on the first Business Day
thereafter (the " Payment Date"), commencing ____________, ____, to the person
in whose name this Note is registered on the Record Date, the portion of Monthly
Interest and Monthly Principal to which the Noteholder is entitled pursuant to
the Indenture.

         Payments on this Note will be made by the Indenture Trustee by wire
transfer through the facilities of the Depository Trust Company if this note is
held by Cede & Co. and otherwise by check mailed to the Person entitled thereto
without the presentation or surrender of this Note or the making of any notation
hereon. Except as otherwise provided in the Indenture and notwithstanding the
above, the final payment on this Note will be made only upon presentation and
surrender of this Note at the office or agency maintained for that purpose by
the Indenture Trustee.

         Unless the certificate of authentication hereon shall have been
executed by a Responsible Officer of the Indenture Trustee, by manual or
facsimile signature, this Note shall not entitle the holder hereof to any
benefit under the Indenture or be valid for any purpose.

         The Note does not represent an interest in the Issuer nor an interest
in or obligation of any affiliate of the Issuer, including BVAC Securitization
Corporation or Bay View Acceptance Corporation. The Note is limited in right of
payment to certain collections and recoveries respecting the Receivables, all as
more specifically set forth in the Indenture. In addition to the Class A-1
Notes, the Issuer has also issued Class A-2 Notes, Class A-3 Notes, Class A-4
Notes and Class B Notes. The Class B Notes are subordinated to the Class A Notes
as provided in the Indenture. The Indenture provides for certain amounts to be
deposited into the Spread Account. In the event amounts available for withdrawal
from the Spread Account are insufficient to make payments relating to this Note
and the other notes issued by the Issuer, the Indenture Trustee will draw on the
Policy up to the Policy Amount to pay such deficiency.

         The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Noteholder under the Indenture at any time by the
Issuer and the Indenture Trustee with the consent of the Noteholder. Any such
consent by the holder of this Note shall be conclusive and binding on the
Noteholder.

         This Note is transferrable solely in accordance with Section 2.04 of
the Indenture.

         The obligations and responsibilities to the Noteholder created by the
Indenture shall terminate upon the payment to Noteholder of all amounts required
to be paid to it pursuant to the Indenture. The Certificateholder may at its
option cause the Indenture Trustee to sell the Pledged Assets at a price not to
be less than the price specified in the Trust Agreement, and such sale of the
Receivables and other property may effect early retirement of the Note.

         Although this Note summarizes certain provisions of the Indenture, this
Note does not purport to summarize the Indenture and reference is made to the
Indenture for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby and the rights, duties and
obligations of the Indenture Trustee. In the event of any inconsistency or
conflict between the terms of this Note and the terms of the Indenture, the
terms of the Indenture shall control.

                                      A-2
<PAGE>

         Unless the certificate of authentication hereon has been executed by
the Indenture 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.

         IN WITNESS WHEREOF, the Issuer has caused this Note to be duly
executed.

Dated:

                                    BAY VIEW ____-___ OWNER TRUST
                                    By _____________ Bank as Indenture Trustee

                                    By
                                    Name:
                                    Title:

                          CERTIFICATE OF AUTHENTICATION

This is the Note referred to in the within-mentioned Indenture.

__________________________________, solely in its capacity as Indenture Trustee,

                                    By
                                    Name:
                                    Title:
Dated:

                                      A-3
<PAGE>

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

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

(name and address of assignee)

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

Dated:_________________

                              Signature Guaranteed:

                                        *

* NOTICE: The signature to this assignment must correspond with the name of the
registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.

                                      A-4Master Program Agreement

This Master Program Agreement  ("Agreement") dated July 26, 1999 is entered into
between  NetWolves  Corporation,   a  New  York  corporation,   located  at  200
Broadhollow Road, Melville, New York 11747, ("NetWolves"), and Comdisco, Inc., a
Delaware  Corporation,  located  at 6111  N.  River  Road,  Rosemont,  IL  60018
("Comdisco").

NetWolves  is the  manufacturer  of  certain  equipment  known as the FoxBox and
Comdisco is in the business of financing  equipment  and  providing  services in
connection with the equipment.

This Agreement  contemplates an on-going business relationship in which Comdisco
will (i) acquire  from  NetWolves,  all of the right,  title and interest in the
equipment with the exception of intellectual property rights,  software upgrades
and software  application  and content;  (ii) take an  assignment  in associated
leases between NetWolves and certain  customers of NetWolves;  and (iii) provide
services with respect to the equipment as NetWolves'  subcontractor  and take an
assignment of the services fees in connection therewith.

NOW  THEREFORE,  in  consideration  of  the  foregoing  and  the  covenants  and
conditions  set forth herein,  the parties have entered into this  Agreement and
mutually agree as follows.

Definitions

"Commencement  Certificate" means an acceptance certificate substantially in the
form of Exhibit A confirming acceptance of the leased Equipment.

"Equipment" means the FoxBox equipment which will be sold to Comdisco under this
Agreement  and leased to Target  Customers  by  NetWolves  or sold  directly  by
NetWolves to Target Customers. The Equipment is specified in Exhibit B.

"Lease" or "Lease  Documents" means the Product  Agreement and related Equipment
Schedule  in the  form of  Exhibit  C which  NetWolves  will  use to  lease  the
Equipment and provide Services to Target Customers.

"Lessee" means a Target Customer under a Lease.

"Losses" means all losses, claims, liabilities,  demands and expenses whatsoever
including, without limitation, reasonable attorney's fees.

"Related Software" means NetWolves'  software described in Exhibit D which is an
integral part of the Equipment.

"Services" means the roll-out, maintenance, deinstallation and other services as
detailed in the Statement of Work under Services and Lease Documents provided by
Comdisco to Target Customers as NetWolves' subcontractor.

"Services  Documents" means the Services  Agreement and Services Schedule in the
form of  Exhibit  E which  NetWolves  will use to  provide  Services  to  Target
Customers who purchase the Equipment directly from NetWolves.

"Software Application and Content"

"Target  Customer" shall be limited to companies that will lease or purchase the
Equipment as detailed in Exhibit F.

"Transaction  Package for Leased  Equipment"  means the following  completed and
properly  executed  documents  between  NetWolves and the Target  Customer:  (i)
Product Agreement; (ii) Equipment Schedule.

"Transaction  Package for Purchased Equipment" means the following completed and
properly  executed  documents  between  NetWolves and the Target  Customer:  (i)
Services Agreement; (ii) Services Schedule; and (iii) Master Sale Agreement.
<PAGE>
1.0  Transaction Origination, Administration and Assignment

1.1  Comdisco and  NetWolves  will,  simultaneously  with the  execution of this
     Agreement,  execute the Master Agreement and Services  Schedule in the form
     of Exhibit G to  provide  the  Services  on behalf of  NetWolves  to Target
     Customers pursuant to the terms of this Agreement.

1.2  Upon approving the credit of a Target Customer (as detailed in Section 3.0)
     Comdisco will prepare and forward  original Lease or Services  Documents to
     NetWolves, as applicable,  to present to the Target Customer for execution.
     Any  changes to the Lease or Services  Documents  will  require  Comdisco's
     approval.

1.3  Upon Comdisco's receipt and approval of the Transaction  Package for Leased
     Equipment,  NetWolves,  upon  receipt  of  payment  from  Comdisco  for the
     Equipment,  will be deemed to have  assigned to Comdisco all of  NetWolves'
     right,  title  and  interest  in  the  Equipment,  with  the  exception  of
     intellectual  property rights,  software upgrades and Software  Application
     and Content, the Product Agreement,  and the Equipment Schedule,  including
     the right to receive  any rental  payments  included  therein.  Thereafter,
     NetWolves  will have no further  right to any rentals  associated  with the
     Lease  Documents  during  the  Initial  Term  of  any  Equipment  Schedule.
     Notwithstanding the foregoing  assignment,  NetWolves shall not be relieved
     of  any  of  its   obligations  as  a  manufacturer,   including   warranty
     obligations.

1.4  Upon Comdisco's receipt and approval of a Transaction Package for Purchased
     Equipment,  NetWolves,  upon  receipt  of  payment  from  Comdisco  for the
     Equipment,  will be deemed to have assigned to Comdisco all amounts due, if
     any, under a Master Sale  Agreement,  and all right,  title and interest to
     the Services Agreement and Services Schedule (except for any obligations to
     be performed by NetWolves pursuant to the Master Agreement) and all amounts
     due or to become due thereunder. Thereafter, NetWolves will have no further
     right to any revenues associated with the foregoing documents.

1.5  Upon taking an assignment as described in 1.3 and 1.4 above or upon receipt
     of  the  executed  Master  Sale  Agreement,  Comdisco  will  undertake  all
     invoicing on  NetWolves'  letterhead  to the Target  Customer in accordance
     with the  terms of the  Lease or  Services  Documents  or the  Master  Sale
     Agreement,  as applicable.  If NetWolves  becomes aware of any default by a
     Target  Customer under the Lease or Services  Documents,  it shall promptly
     notify Comdisco.

1.6  Lessee shall be  responsible  for and shall file and pay all property taxes
     incurred  in  connection  with the  lease  of the  Equipment.  The  Product
     Agreement  shall  provide  that  Lessee  shall  indemnify  and hold  Lessor
     harmless from and against all taxes,  other than those taxes based upon the
     net income of Lessor.

1.7  NetWolves  will at all times  remain the owner of the Related  Software and
     agrees to transfer all Related Software to the Target  Customers,  pursuant
     to the terms of NetWolves' standard documentation evidencing such transfer.

1.8  Comdisco  acknowledges that it is purchasing the Equipment for resale/lease
     and will provide NetWolves with valid exemption certificates.

2.0  Financial Arrangement
<PAGE>
2.1  Comdisco  has  entered  into  this  financial  arrangement  on the basis of
     NetWolves  intending to implement  40,000 Target Customer  locations within
     forty-eight (48) months from the date of this Master Program Agreement.

2.2  The calculation of the Equipment  purchase price is contingent upon whether
     the Target Customer purchases or leases the Equipment ("purchase price").

     2.2.1Target Customer Elects to Purchase the Equipment. If a Target Customer
          elects to purchase the Equipment  from  NetWolves  instead of entering
          into a  Lease,  and  elects  not  to  take  the  Services,  then  upon
          Comdisco's receipt and approval of a Transaction Package for Purchased
          Equipment  containing the Master Sale  Agreement  only, and receipt of
          the sale  price  from the  Target  Customer,  Comdisco  will  remit to
          NetWolves an amount equal to the purchase  price of the Equipment less
          $1,400.  If a Target  Customer  elects to purchase the  Equipment  and
          elects to take the Services, then upon Comdisco's receipt and approval
          of a Transaction  Package for  Purchased  Equipment and receipt of the
          sale price from the Target Customer,  Comdisco will remit to NetWolves
          the full purchase price. All Services provided will be based on a term
          of forty-eight (48) months.

     2.2.2Target  Customer  Elects to Lease the Equipment.  If a Target Customer
          elects  to lease  the  Equipment,  then upon  Comdisco's  receipt  and
          approval of a Transaction  Package for Leased Equipment,  the purchase
          price for each unit of Equipment  will equal the present  value of the
          rental  stream  at an  interest  rate  commensurate  with  the  Target
          Customer's  credit rating and prevailing  market rates.  Comdisco will
          purchase the Equipment from NetWolves, without recourse but subject to
          Section 4.1(h), at 95% of the purchase price. Comdisco agrees to remit
          payment  to  NetWolves  for the  Equipment  within  ten  (10)  days of
          Comdisco's receipt and approval of the applicable  Transaction Package
          for Leased  Equipment  and  Commencement  Certificate.  At the time of
          payment, NetWolves will provide Comdisco with a bill of sale.

2.3  Comdisco  will  charge a Service  fee of $600.00  to  install  each item of
     Equipment.  Comdisco  will  charge a  minimum  Service  fee of  $300.00  to
     deinstall each item of Equipment.  In the event NetWolves  charges a Target
     Customer  a Service  Fee  greater  than  $300.00  to  deinstall  an item of
     Equipment, NetWolves and Comdisco will share the excess amount on the basis
     of 73% to NetWolves and 27% to Comdisco. All amounts in connection with the
     installation  or  deinstallation  of the  Equipment  will be invoiced  upon
     completion of such installation or deinstallation.

2.4  For the first  twelve  (12) months of an  Equipment  Schedule or a Services
     Schedule,  as applicable,  the Target customer will not be obligated to pay
     Service fees other than for  installation and  deinstallation,  because the
     Equipment is considered  to be under  manufacturer  warranty.  Beginning in
     month thirteen (13) of the Equipment or Services Schedule, Customer will be
     obligated to pay a Service fee of $28.00 per month per item of Equipment.

2.5  The rent under an  Equipment  Schedule is estimated to be $200.00 per month
     per item of Equipment installed, exclusive of taxes.

2.6  The Lease Documents will require Lessee to pay Lessor the last month's rent
     at the time that the first rent payment is due.

2.7  Comdisco's  obligation  to purchase the  Equipment and to pay NetWolves the
     purchase price is contingent upon the following:
<PAGE>
     a.   Lessee's  credit has been  approved and there is no adverse  change in
          Lessee's credit as defined under the Equipment Schedule.

     b.   The Lessee is not in default under any Equipment Schedule.

     c.   Comdisco has received a completed and approved Transaction Package for
          Leased Equipment, and an executed Commencement Certificate.

     d.   Comdisco  has  received  a  completed  and  approved  the   applicable
          Transaction  Package for  Purchased  Equipment and the sale price from
          the Target Customer.

     e.   NetWolves is not in default under this Agreement, the Master Agreement
          or the Services Schedule.

     f.   Neither  NetWolves nor a Target Customer is in default under any Lease
          or Services Documents.

2.8  NetWolves agrees that Comdisco may, on a periodic basis,  review and audit,
     at reasonable times and on reasonable notice,  NetWolves' sale of Equipment
     to Target Customers.

3.0  Credit Review

3.1  Prior to  entering  into  Lease  or  Services  Documentation  with a Target
     Customer, NetWolves will request credit approval from Comdisco with respect
     to the  Target  Customer.  Credit  approval  and the rent  under  the Lease
     Documents will be calculated  based on the Credit Table set forth below and
     all credit approval will be valid for a period of forty-five (45) days from
     the date of approval.

3.2  Credit Table
     Moodys Rating            Basis Points Above Like Term Treasuries
     -------------            ---------------------------------------
     AAA   Aa3                175 basis points
     A1   A3                  200
     Baa1   Baa3              225
     Below Baa3               Individual Credit Review Needed

     Comdisco  reserves  the right to re-adjust  the basis  points  listed above
     based upon a change in market  conditions as determined by Comdisco  within
     six (6)  months  from the date of this  Agreement  and every six (6) months
     thereafter.  If market  conditions  change so that  Comdisco  readjusts the
     basis points as provided for herein,  and NetWolves deems such readjustment
     to be above  competitive  market  rates,  NetWolves  will obtain  three (3)
     quoted  rates  from a third  party  using a similar  point  structure  (the
     "Quoted  Rates").  If Comdisco  matches  the  average of the Quoted  Rates,
     NetWolves  will be deemed to accept  Comdisco's  readjustment.  If Comdisco
     elects  not to match  the  Quoted  Rates,  NetWolves  may  obtain  hardware
     financing from one of the three parties supplying the Quoted Rates.

4.0  Representations and Warranties

4.1  NetWolves  hereby  represents  and warrants (as of the date of execution of
     this Agreement as to (a) and (b) below) that:
<PAGE>

a.   It is a corporation  duly  organized and validly  existing in good standing
     under the laws of the jurisdiction of its incorporation with full corporate
     power  to  enter  into  this  Agreement  and  to  carry  out   transactions
     contemplated herein.

b.   The  execution  and  delivery of this  Agreement,  and all other  documents
     contemplated  herein (including but not limited to the Warrant  Agreement),
     as well as performance of the contemplated transactions hereunder have been
     duly authorized by all necessary  corporate action and this Agreement,  and
     all other  documents  contemplated  herein,  constitute a legal,  valid and
     binding obligation enforceable in accordance with its terms.

c.   Except as detailed  in this  Agreement,  there will be no other  agreements
     between  NetWolves  and the Target  Customer  relating to the Equipment and
     Services in contradiction of the terms of this Agreement. Nothing contained
     in this Agreement  shall  preclude  NetWolves from selling or leasing other
     services to the Target Customer.

d.   All credit information known to NetWolves concerning a Target Customer will
     have been disclosed or made available to Comdisco.

e.   The Target  Customer is not be in default  under any other  agreement  with
     NetWolves which is not the subject of this Agreement.

f.   As of the payment of the purchase  price to  NetWolves,  it is the owner of
     the Equipment and that title to the Equipment will be free and clear of all
     liens, claims,  interests and encumbrances of any kind, including,  but not
     limited to, infringement for claims of third party proprietary rights.

g.   If Comdisco purchases the Equipment from NetWolves,  pursuant to the Target
     Customer's  election to lease the  Equipment,  title to the Equipment  will
     vest in Comdisco upon payment of the purchase price.

h.   The Equipment will be in working order at the time of  installation  at the
     Target  Customer  location,  will  perform  in  all  material  respects  in
     accordance  with  NetWolves   specifications  published  at  the  time  the
     Equipment  is  installed,  and will be subject to  NetWolves  then  current
     manufacturer warranties.

4.2  Comdisco  hereby  represents and warrants that, as of the date of execution
     of this Agreement that:

     a.   It is a  corporation  duly  organized  and  validly  existing  in good
          standing under the laws of the jurisdiction of its incorporation  with
          full corporate power to enter into this Agreement and to carry out the
          transactions contemplated herein.

     b.   The execution and delivery of this Agreement,  and all other documents
          contemplated  herein,  as well as the performance of the  contemplated
          transactions  hereunder  have been duly  authorized  by all  necessary
          corporate   action  and  this  Agreement,   and  all  other  documents
          contemplated herein,  constitute a legal, valid and binding obligation
          enforceable in accordance with its terms.

5.0  Indemnification

     5.1  NetWolves  agrees to  indemnify  and hold  harmless  Comdisco  and its
          affiliates, subsidiaries, employees and agents, successors and assigns
          from any and all:
<PAGE>
          a.   Losses arising from any third party claims based upon a breach of
               NetWolves' representations,  warranties or obligations under this
               Agreement.

          b.   Losses  resulting  directly or indirectly from claims  including,
               without   limitation,   third  party  claims  arising  in  strict
               liability   or   negligence   or   claims  of   infringement   or
               misappropriation  of any  proprietary  interest  or  right of any
               third party, including without limitation any trademark,  patent,
               copyright or trade secret in connection with the Equipment and/or
               Related Software:

          c.   Losses  arising from third party claims based upon any inaccurate
               or incomplete  information willfully or intentionally provided by
               NetWolves.

5.2  In the event that a third party  claims that the  Equipment  or any Related
     Software  infringes a trade secret,  patent,  copyright or any  proprietary
     right of a third party,  NetWolves agrees to defend Comdisco, at NetWolves'
     expense,   and  NetWolves  will  pay  all  costs,  damages  and  reasonable
     attorney's  fees awarded to a third party  arising from such  infringement.
     Comdisco  agrees to promptly  notify  NetWolves  of any such claim and will
     allow  NetWolves  to  control  the  defense  and  any  related   settlement
     negotiations,  provided such settlement does not affect Comdisco's right as
     owner of the  Equipment  nor  diminish  or  increase  Comdisco's  or Target
     Customer's rights or obligations under the Lease or Services Documentation.
     Comdisco may  participate  in the defense of any such claim at its own cost
     and expense.

6.0  Limitation of Liability

     IN CONNECTION WITH THIS AGREEMENT,  NEITHER  COMDISCO NOR NETWOLVES WILL BE
     LIABLE TO THE OTHER FOR INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES EVEN IF
     ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
<PAGE>
7.0  Equipment Maintenance

7.1  The   responsibilities   of  Comdisco  and  NetWolves  in  connection  with
     maintenance  will be as detailed in the Statement of Work,  attached to the
     Services Schedule under the Master Agreement.

8.0  Remarketing

8.1  Comdisco will, at the request of NetWolves,  either  directly or indirectly
     through its subcontractor, perform the following services following a Lease
     termination:

     a.   Upon  expiration  of the Initial Term of any Equipment  Schedule,  any
          in-place  extension  rental and  in-place  purchase  price  negotiated
          between  Comdisco and Lessee will be apportioned  between Comdisco and
          NetWolves as follows: NetWolves 73% and Comdisco 27%.

     b.   For any  Equipment  that is  returned to Comdisco by a Lessee at lease
          termination,  and that is  remarketed to a subsequent  user,  Comdisco
          will take the first  $400.00  per item of  Equipment  for  storage and
          refurbishing costs incurred by Comdisco.  Any remarketing  proceeds in
          excess of $400.00  shall be  apportioned  73% to NetWolves  and 27% to
          Comdisco.

9.0  Term and Termination

9.1  This Agreement  shall be effective as of the date first set forth above and
     shall  continue  for an  initial  period  of four (4) years  (the  "initial
     term"),  and  thereafter  shall be  automatically  renewed  for  additional
     one-year  periods (the "extended  term"),  unless  terminated in writing by
     either party given thirty (30) days prior to the  expiration of the initial
     term.  During the extended term,  either party may terminate this Agreement
     at any time upon thirty (30) days prior written notice.

9.2  Either party may, by written notice,  terminate this Agreement for cause if
     the other party fails to cure a material  default under the Agreement.  Any
     material  default  must  be  specifically   identified  in  the  notice  of
     termination. After written notice, the notified party will have thirty (30)
     days to remedy any default.  Failure to remedy the material  default within
     the  time  period  provided  for  herein  will  give  cause  for  immediate
     termination.

9.3  Notwithstanding any termination of this Agreement, the terms and conditions
     of this  Agreement  will survive for purposes of any Equipment  Schedule or
     Services Schedule in effect with a Target Customer.

9.4  Provided  Comdisco  is not in material  default  under this  Agreement  and
     subject to  paragraphs  4.1(c) and 3.2,  during the initial or any extended
     term of this  Agreement  or upon the lease or purchase  of 20,000  units of
     Equipment as  contemplated  under this  Agreement,  whichever  comes first,
     NetWolves  agrees not to enter into any  agreement in  connection  with any
     Target Customer with any other technology services provider for the purpose
     of  providing  hardware  financing  and the  Services  specified  under the
     Statement of Work in Exhibit E.

10.0 Publicity
<PAGE>
     Except as hereinafter provided in this Section, NetWolves and Comdisco will
     consult  with each other  before  issuing  any press  release or  otherwise
     making any public  statements  with respect to this  Agreement or the other
     transactions contemplated hereby, including using any tradename, or service
     mark  which  identifies  the  other  party,  and  shall not issue any press
     release or make any such public statement prior to receiving the consent of
     the  other  party,  which  consent  will not be  unreasonably  withheld  or
     delayed.  Nothing  contained  herein shall prohibit any party from making a
     press release or other statement required by law or by obligations pursuant
     to any agreement  with any automated  interdealer  quotation  system if the
     party  making  the  disclosure  has first  consulted  with the other  party
     hereto.

11.0 Warrant Coverage

     In   consideration   of  entering  into  this  Agreement,   NetWolves  will
     simultaneous with the execution of this Agreement issue a Warrant Agreement
     granting to  Comdisco  the right to purchase  175,000  shares of  NetWolves
     Common Stock, for an Exercise Price of $10.00 per share,  with a term of no
     less  than  five (5)  years.  The  form of  Warrant  Agreement  shall be as
     attached to this  Agreement as Exhibit H, "Warrant  Agreement".  The number
     and purchase  price of shares shall be subject to adjustment as provided in
     Section  8 of the  Warrant  Agreement.  The  Exercise  Price may be paid at
     Comdisco's  election  either by cash or check or by  surrender  of Warrants
     ("Net Issuance") as determined in the Warrant Agreement.

12.0 Confidentiality

     Each party  (including its employees and agents) will use the same standard
     of care to protect  any  confidential  information  of the other  disclosed
     during negotiation or performance of this Agreement that it uses to protect
     its own confidential information. Confidential Information will not include
     information which (i) is or becomes publicly  available through no wrongful
     act of the receiving  party;  (ii) was known by the receiving  party at the
     time of disclosure  without any  obligation of  confidentiality;  (iii) was
     acquired by the receiving  party from a third party without  restriction on
     nondisclosure; or (iv) was developed independently by the receiving party.

13.0 Miscellaneous

13.1 Each party is an independent  contractor and, except as expressly set forth
     herein,  will have no authority to bind or commit the other party.  Nothing
     herein shall be deemed or construed to create a joint venture,  partnership
     or agency relationship between the parties.

13.2 Except as set forth  herein,  neither  party may  assign  their  rights and
     obligations  described in this Agreement  without the prior written consent
     of the other party except for assignments to affiliates or subsidiaries who
     agree to be bound by the terms of this Agreement. In addition, in the event
     of any such assignment on the part of NetWolves, NetWolves agrees to remain
     primarily  liable  for  the  performance  of  all  obligations   hereunder.
     Notwithstanding the foregoing,  Comdisco may subcontract the performance of
     its  Services to a third  party or assign its rights as provided  for under
     the Lease.

13.3 The waiver by either party of a breach of any  provision of this  Agreement
     will not be construed as a waiver of any subsequent breach. The invalidity,
     in whole or in part, of any provision of this Agreement will not affect the
     validity of the remaining provisions.
<PAGE>
13.4 This  Agreement  including  each Exhibit  represents  the entire  agreement
     between the parties and  supersedes  all oral or other  written  agreements
     understandings  between the parties  concerning the Equipment and Services.
     This  Agreement  may not be  modified  unless in writing  and signed by the
     party against whom enforcement of the modification is sought.

13.5 Any notice,  request or other  communication  under this  Agreement will be
     given in writing and deemed  received upon the earlier of actual receipt or
     three (3) days  after  mailing  if mailed  postage  prepaid  by  regular or
     airmail to the  address  set forth  above or, one day after such  notice is
     sent by courier or facsimile transmission.  Copies to NetWolves also are to
     be provided to David H. Lieberman, Esq., Blau, Kramer, Wactlar & Lieberman,
     P.C., 100 Jericho Quadrangle, Jericho, NY 11731.

13.6 Those terms and conditions which would, by their meaning or intent, survive
     the expiration or termination of this Agreement will so survive.

13.7 THIS  AGREEMENT  IS GOVERNED  BY THE LAWS OF THE STATE OF NEW YORK  WITHOUT
     REGARD TO ITS  CONFLICT  OF LAWS  PROVISIONS.  If there is any  dispute  or
     litigation  as a result of this  Agreement,  the  prevailing  party will be
     entitled to reasonable  attorney's fees. Any action by either party must be
     brought within two (2) years after the cause of action arose.

13.8 All Exhibits to this Agreement are hereby  incorporated  into and deemed to
     be a part of this Agreement.

13.9 In connection with the Services,  in the event of any conflict between this
     Agreement and the Master Agreement, the Master Agreement will govern.

13.10Terms  and   conditions  on  any   NetWolves'   purchase   order  or  other
     acknowledgment  form in addition to, different from or in conflict with the
     terms of this Agreement will be of no force or effect.

13.11NetWolves  will promptly  deliver to Comdisco  after filing such  documents
     with the Securities and Exchange Commission, at Comdisco's request:

     a.   NetWolves' Quarterly and Annual forms 10Q and 10K.

     b.   Such other information concerning the financial condition of NetWolves
          which is  available  to the public as  Comdisco  may from time to time
          request.

13.12Comdisco  and  NetWolves  will  cooperate  by  furnishing  such records and
     supporting material relating to transactions  contemplated hereunder as may
     be reasonably  requested by each party,  and in the  preparation  of forms,
     including notices to Lessees,  and the execution of such other documents as
     may be necessary to fulfill the intent and  effectuate  the purpose of this
     Agreement.

13.13This  Agreement  shall be  binding  upon and  inure to the  benefit  of the
     parties hereto and their respective successors,  personal  representatives,
     executors, heirs and permitted assigns.

IN WITNESS  WHEREOF,  the parties have executed this Agreement on the date first
set forth above.

NETWOLVES CORPORATION                        COMDISCO, INC.

By; /s/ Walter M. Groteke                    By: /s/ John Christopher

Title: ___________________________           Title: ____________________________

Date: _____________________________          Date: ____________________________

<PAGE>
                                   Exhibit A
                        to the Master Program Agreement
                       between NetWolves Corporation and
                                 Comdisco, Inc.
                              Dated July 26, 1999

                            COMMENCEMENT CERTIFICATE
                            ------------------------

     This Certificate dated is executed pursuant to Equipment Schedule No. __ to
the Product Agreement dated _______ between NetWolves Corporation ("Lessor") and
________________________ ("Lessee").

1.      Equipment:
        ---------

                             Equipment
        Qty.       Mfg.      Type/Model       Serial #        Location
        ----       ----      ----------       --------        --------

2.      Commencement Date:
        -----------------

3.      Total Equipment Cost:        $
        --------------------
        (Please total attached invoices)

4.      Representations of Lessee:
        -------------------------

          The  Equipment  has been  delivered to the location  indicated  above,
          tested,  inspected,  found to be in good working order and accepted by
          the Lessee on the Commencement Date.

as Lessee

By:_______________________________

Title:____________________________

<PAGE>
                                   Exhibit B
                        to the Master Program Agreement
                       between NetWolves Corporation and
                                 Comdisco, Inc.
                              Dated July 26, 1999

                             FoxBox Product Family

                                  FoxBox ESCN
                                  -----------
<TABLE>
<CAPTION>
Connection Type                 Dial on Demand
---------------                 --------------
Hardware Specs
--------------
<S>                             <C>
Processor                       266 Mhz
Memory                          32 Megabytes
Storage                         4.3 Gigabytes
Ports                           (1) 100 Megabit Ethernet & (1) V.90 Modem
Web Server                      Internet only
Mail Server IMAP                IMAP Internal
                                POP3 Internal
                                SMTP External
Security Features
Proxies - LAN to Internet       SMTP, HTTP, DNS
Stateful Filters                All TCP and UDP Protocols
Administrative Interface (AI)   Web Based AI only accessible from local LAN
Recommended Number of Users     Up to 8

                                 Thin Client
                                 -----------
Hardware Specs
--------------
Processor                       300 Mhz
Memory                          64 Megabytes
Storage                         No Disk
Network Card                    100 Megabit Ethernet
Video                           4 Megabyte Video
</TABLE>
<PAGE>
                                   Exhibit C
                        to the Master Program Agreement
                       between NetWolves Corporation and
                                 Comdisco, Inc.
                              Dated July 26, 1999

           Form of Product Agreement and Equipment Schedule attached

                                                               PRODUCT AGREEMENT

This  Product  Agreement  dated  ______________________________  is  made by and
between  NetWolves  Corporation  ("NetWolves")  with offices at 200  Broadhollow
Road, Melville, New York 11747, and ____________________________________________
____________________________________________________("Customer") with offices at
____________________________________________________.

SECTION 1. PROPERTY LEASED

NetWolves  leases to Customer  all of the  Products  described  on any  Schedule
entered into pursuant to the terms of this Product Agreement.

SECTION 2. TERM

On the Commencement Date Customer will be deemed to accept the Products, will be
bound to its rental obligations for the Products and the term of a Schedule will
begin and continue  through the Initial Term and thereafter  until terminated by
either party upon prior written notice  received  during the Notice  Period.  No
termination may be effective prior to the expiration of the Initial Term.

SECTION 3. RENT AND PAYMENT

Rent is due and payable in advance, in immediately available funds, on the first
day of  each  Rent  Interval  to the  payee  and at the  location  specified  in
NetWolves'  invoice.  Interim  Rent is due and  payable  when  invoiced.  If any
payment is not made when due, Customer will pay interest at the Overdue Rate.

SECTION 4. SELECTION AND WARRANTY AND DISCLAIMER OF
           WARRANTIES

4.1  Selection.  Customer  acknowledges  that it has  selected  the Products and
disclaims any reliance upon statements made by NetWolves.

4.2 Warranty and Disclaimer of Warranties.  NetWolves warrants to Customer that,
so long as  Customer is not in default,  NetWolves  will not disturb  Customer's
quiet and peaceful possession,  and unrestricted use of the Products. During the
term of the Schedule, NetWolves grants to Customer all applicable warranties for
the Products.  NetWolves assigns to Customer during the term of the Schedule any
manufacturer's warranties for the Products. NetWolves is not responsible for any
liability,  claim,  loss,  damage  or  expense  of any  kind  (including  strict
liability in tort) caused by the Products  except for any loss or damage  caused
by the negligent acts of NetWolves.  UNDER NO  CIRCUMSTANCES,  WILL NETWOLVES BE
LIABLE FOR INDIRECT,  SPECIAL,  CONSEQUENTIAL  OR PUNITIVE  DAMAGES EVEN IF SUCH
PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

SECTION 5. TITLE AND ASSIGNMENT

5.1 Title.  Customer holds the Products subject and subordinate to the rights of
the Owner,  NetWolves,  any Assignee and any Secured Party.  Customer authorizes
NetWolves, as Customer's agent, to prepare,  execute and file in Customer's name
precautionary  Uniform Commercial Code financing statements showing the interest
of the Owner,  NetWolves,  and any Assignee or Secured Party in the Products and
to insert  serial  numbers in  Schedules as  appropriate.  Except as provided in
Sections 5.2 and 7.2, Customer will, at its expense,  keep the Products free and
clear  from any  liens  or  encumbrances  of any  kind  (except  any  caused  by
NetWolves)  and will  indemnify  and hold  NetWolves,  Owner,  any  Assignee and
Secured Party harmless from and against any loss caused by Customer's failure to
do so.

5.2  Relocation or Sublease.  Upon prior written  notice,  Customer may relocate
Products to any location within the  continental  United States provided (i) the
Products will not be used by an entity  exempt from federal  income tax and (ii)
all additional costs (including any  administrative  fees,  additional taxes and
insurance coverage) are reconciled and promptly paid by Customer.

Customer may sublease the Products upon the reasonable  consent of NetWolves and
the Secured  Party.  Such  consent to sublease  will be granted if: (i) Customer
meets the relocation  requirements set out above, (ii) the sublease is expressly
subject and subordinate to the terms of the Schedule, (iii) Customer assigns its
rights  in the  sublease  to  NetWolves  and the  Secured  Party  as  additional
collateral and security,  (iv) Customer's  obligation to maintain and insure the
Products is not altered,  (v) all financing  statements required to continue the
Secured  Party's  prior  perfected  security  interest  are filed,  and (vi) the
sublease is not to a leasing  entity  affiliated  with the  manufacturer  of the
Products described on the Schedule.  NetWolves acknowledges  Customer's right to
sublease for a term which extends  beyond the expiration of the Initial Term. If
Customer  subleases the Products for a term  extending  beyond the expiration of
such Initial Term of the applicable  Schedule,  Customer shall remain  obligated
upon the  expiration  of the  Initial  Term to  return  such  Products,  or,  at
NetWolves'  sole  discretion  to (i) return Like  Products  or (ii)  negotiate a
mutually acceptable lease extension or purchase.  If the parties cannot mutually
agree upon the terms of an extension or purchase,  the term of the Schedule will
extend upon the  original  terms and  conditions  until  terminated  pursuant to
Section 2.
<PAGE>
No  relocation or sublease  will relieve  Customer  from any of its  obligations
under this Product Agreement and the applicable Schedule.

5.3 Assignment by NetWolves. The terms and conditions of each Schedule have been
fixed by  NetWolves  in order to  permit  NetWolves  to sell  and/or  assign  or
transfer its interest or grant a security  interest in each Schedule  and/or the
Products to a Secured Party or Assignee.  In that event the term  NetWolves will
mean the Assignee and any Secured Party. However, any assignment, sale, or other
transfer by NetWolves will not relieve NetWolves of its obligations to Customer,
including its warranty  obligations,  and will not materially  change Customer's
duties or  materially  increase the burdens or risks  imposed on  Customer.  The
Customer hereby consents to any such assignment, sale or transfer. Customer also
agrees that:

(a)  The Secured  Party will be entitled to exercise all of  NetWolves'  rights,
     but will not be obligated to perform any of the  obligations  of NetWolves.
     The Secured Party will not disturb Customer's quiet and peaceful possession
     and  unrestricted use of the Products so long as Customer is not in default
     and the  Secured  Party  continues  to receive all Rent  payable  under the
     Schedule;

(b)  Customer  will pay all Rent and all other  amounts  payable to the  Secured
     Party,  despite  any  defense  or  claim  which it has  against  NetWolves.
     Customer reserves its right to have recourse directly against NetWolves for
     any defense or claim; and

(c)  Subject to and without  impairment  of Customer's  leasehold  rights in the
     Products,  Customer  holds the Products for the Secured Party to the extent
     of the Secured Party's rights in the Products.

SECTION 6. NET LEASE AND TAXES

6.1 Net Lease. Each Schedule constitutes a net lease.  Customer's  obligation to
pay Rent and all other amounts is absolute and  unconditional and is not subject
to any  abatement,  reduction,  set-off,  defense,  counterclaim,  interruption,
deferment or recoupment for any reason whatsoever.

6.2 Taxes and Fees.  Lessee will pay when due or reimburse Lessor for all taxes,
fees or any other charges  (together with any related  interest or penalties not
arising from the negligence of Lessor) accrued for or arising during the term of
each  Schedule  against  Lessor,  Lessee  or the  Products  by any  governmental
authority (except only Federal,  state and local taxes on the capital or the net
income of Lessor).  Lessee will file all  personal  property tax returns for the
Products  and pay all  property  taxes due.  Lessee  will  reimburse  Lessor for
property taxes within thirty (30) days of receipt of an invoice.

SECTION 7. CARE, USE AND MAINTENANCE, ATTACHMENTS AND
           RECONFIGURATIONS AND INSPECTION BY NETWOLVES

7.1 Care,  Use and  Maintenance.  Customer  will  maintain  the Products in good
operating order and appearance,  protect the Products from deterioration,  other
than normal wear and tear,  and will not use the Products for any purpose  other
than that for which it was designed.  If commercially  available,  Customer will
maintain in force a standard  maintenance  contract with the manufacturer of the
Products,  or another  party  acceptable  to  NetWolves,  and upon  request will
provide  NetWolves  with a complete copy of that  contract.  If Customer has the
Products  maintained by a party other than the manufacturer,  Customer agrees to
pay any costs  necessary  for the  manufacturer  to bring the  Products  to then
current release,  revision and engineering  change levels, and to re-certify the
Products as eligible for  manufacturer's  maintenance  at the  expiration of the
lease  term.  The lease term will  continue  upon the same terms and  conditions
until recertification has been obtained.

7.2  Attachments and  Reconfigurations.  Upon prior written notice to NetWolves,
Customer may reconfigure and install  Attachments on the Products.  In the event
of such a  Reconfiguration  or Attachment,  Customer  shall,  upon return of the
Products,  at its expense,  restore the  Products to the original  configuration
specified on the Schedule in accordance with the  manufacturer's  specifications
and in the same operating order, repair and appearance as when installed (normal
wear and tear  excluded).  If any parts are removed from the Products during the
Reconfiguration  or  Attachment,  the  restoration  will include,  at Customer's
option,  the  installation  of either the original  removed parts or Like Parts.
Alternatively,   with  NetWolves'  prior  written  consent  which  will  not  be
unreasonably  withheld,  Customer may return the Products with any Attachment or
upgrade.  If any parts of the Products are removed during a  Reconfiguration  or
Attachment,  NetWolves  may  require  Customer to provide  additional  security,
satisfactory  to the  NetWolves,  in order to ensure  performance  of Customer's
obligations  set  forth  in  this  subsection.  Neither  Attachments  nor  parts
installed on Products in the course of  Reconfiguration  shall be  accessions to
the Products.
<PAGE>
However,  if the  Reconfiguration or Attachment (i) adversely affects NetWolves'
tax  benefits  relating to the  Products;  (ii) is not capable of being  removed
without causing material damage to the Products;  or (iii) if at the time of the
Reconfiguration  or Attachment the  manufacturer  does not offer on a commercial
basis a means for the removal of the additional items; then such Reconfiguration
or Attachment is subject to the prior written consent of NetWolves.

7.3 Inspection by NetWolves. Upon request,  Customer, during reasonable business
hours and subject to Customer's  security  requirements,  will make the Products
and  its  related  log  and  maintenance  records  available  to  NetWolves  for
inspection.

SECTION 8. REPRESENTATIONS AND WARRANTIES OF CUSTOMER

Customer  represents and warrants that for each Schedule entered into under this
Product Agreement:

(a)  The  execution,  delivery and  performance  of the Customer  have been duly
     authorized by all necessary corporate action;

(b)  The individual executing was duly authorized to do so;

(c)  The Master Agreement, Product Agreement and each Schedule constitute legal,
     valid and binding agreements of the Customer enforceable in accordance with
     their terms; and

(d)  The  Products  are  personal  property  and  when  subjected  to use by the
     Customer will not be or become fixtures under applicable law.

SECTION 9. DELIVERY AND RETURN OF PRODUCTS

Customer assumes the full expense of transportation and in-transit  insurance to
Customer's  premises and for  installation  of the Products.  Upon expiration or
termination of each Schedule,  Customer will, at NetWolves'  instructions and at
Customer's expense (including transportation and in-transit insurance), have the
Products  deinstalled,  audited  by the  manufacturer,  packed  and  shipped  in
accordance with the  manufacturer's  specifications and returned to NetWolves in
the same operating order, repair and appearance as when installed (ordinary wear
and tear  excluded),  to a location  within  the  continental  United  States as
directed  by  NetWolves.  All items  returned  to  NetWolves  in addition to the
Products become property of NetWolves.

SECTION 10. LABELING

Upon request,  Customer will mark the Products indicating  NetWolves'  interest.
Customer will keep all Products  free from any other  marking or labeling  which
might be interpreted as a claim of ownership.

SECTION 11. INDEMNITY

Customer will indemnify and hold  NetWolves,  any Assignee and any Secured Party
harmless  from and  against  any and all claims,  costs,  expenses,  damages and
liabilities,  including reasonable attorney's fees, arising out of the ownership
(for strict liability in tort only), selection,  possession, leasing, operation,
control,  use,  maintenance,  delivery,  return  or  other  disposition  of  the
Products.  However, Customer is not responsible to a party indemnified hereunder
for any claims,  costs,  expenses,  damages and  liabilities  occasioned  by the
negligent acts of such indemnified party. Customer agrees to carry bodily injury
and  property  damage  liability  insurance  during the term of the  Schedule in
amounts  and  against  risks  customarily  insured  against by the  Customer  on
Products  owned by it. Any amounts  received by NetWolves  under that  insurance
will be credited against Customer's obligations under this Section.

SECTION 12. RISK OF LOSS

12.1  Customer's  Risk of Loss. If the Schedule  indicates that the Customer has
responsibility  for the risk of loss of the Products,  then the following  terms
will apply:

Effective upon delivery and until the Products are returned,  Customer  relieves
NetWolves  of  responsibility  for all  risks of  physical  damage to or loss or
destruction  of the  Products.  Customer will carry  casualty  insurance for the
Products in an amount not less than the  Casualty  Value.  All policies for such
insurance will name NetWolves and any Secured Party as additional insured and as
loss payee,  and will provide for at least thirty (30) days prior written notice
to  NetWolves  of  cancellation   or  expiration.   The  Customer  will  furnish
appropriate evidence of such insurance.

Customer  shall  promptly  repair any damaged  Product  unless such  Product has
suffered a Casualty Loss. Within fifteen (15) days of a Casualty Loss,  Customer
will provide  written  notice of that loss to NetWolves  and Customer  will,  at
NetWolves' option, either (a) replace the damaged Product with Like Products and
marketable  title to the Like Products will  automatically  vest in NetWolves or
(b) pay the  Casualty  Value and after that payment and the payment of all other
amounts due and owing, Customer's obligation to pay further Rent for the damaged
Product will cease.

12.2  NetWolves'  Risk of Loss.  If the Schedule  indicates  that  NetWolves has
responsibility  for the risk of loss of the Products,  then the following  terms
will apply:
<PAGE>
Effective  upon delivery and  throughout  the Initial Term of a Schedule and any
extension, NetWolves agrees to insure the Products against physical damage to or
loss  or  destruction  due to  external  cause  as  specified  by the  terms  of
NetWolves'  then  current  insurance  policy.  NetWolves  relieves  Customer  of
responsibility  for  physical  damage  to or loss  or  destruction  of  Products
reimbursed by that insurance.  Customer will give NetWolves prompt notice of any
damage,  loss or destruction to any Product and NetWolves will determine  within
fifteen (15) days of its receipt of that notice  whether the item has suffered a
Casualty  Loss.  If any  Product  suffers  damage or a  Casualty  Loss  which is
reimbursable under NetWolves' insurance,  upon payment by Customer of NetWolves'
deductible,  NetWolves will: (i) (for damaged  Products) arrange and pay for the
repair of any damaged  Product;  or (ii) (for any Casualty  Loss) at  NetWolves'
option either replace the damaged Product with Like Products, or upon payment of
all other amounts due by Customer  terminate the relevant Schedule as it relates
to the damaged Product.

If any Product suffers damage or a Casualty Loss which is not reimbursable under
NetWolves' insurance,  then Customer will comply with the provisions of the last
paragraph of Section 12.1 regarding  repair,  replacement or payment of Casualty
Value.

If NetWolves fails to maintain insurance coverage as required by this subsection
12.2, Customer will assume such risk of loss and, at the request of any Assignee
or Secured Party, will promptly provide insurance coverage.  This paragraph does
not relieve NetWolves of its obligations to maintain coverage of the Products.

SECTION 13. DEFAULT, REMEDIES AND MITIGATION

13.1  Default.  The  occurrence  of any one or more of the  following  Events of
Default constitutes a default under a Schedule:

(a)  Customer's  failure to pay Rent or other  amounts  payable by Customer when
     due if that failure continues for ten (10) days after written notice; or

(b)  Customer's  failure to perform any other term or  condition of the Schedule
     or the material  inaccuracy of any  representation  or warranty made by the
     Customer in the Schedule or in any document or certificate furnished to the
     NetWolves  hereunder if that failure or  inaccuracy  continues  for fifteen
     (15) days after written notice; or

(c)  An assignment by Customer for the benefit of its creditors,  the failure by
     Customer to pay its debts when due, the insolvency of Customer,  the filing
     by  Customer  or the filing  against  Customer  of any  petition  under any
     bankruptcy or insolvency  law or for the  appointment of a trustee or other
     officer with similar powers, the adjudication of Customer as insolvent, the
     liquidation of Customer, or the taking of any action for the purpose of the
     foregoing; or

(d)  The occurrence of an Event of Default under any Schedule or other agreement
     between Customer and NetWolves or its Assignee or Secured Party.

13.2  Remedies.  Upon the  occurrence  of any of the above  Events  of  Default,
NetWolves, at its option, may:

(a)  enforce Customer's performance of the provisions of the applicable Schedule
     by appropriate court action in law or in equity;

(b)  recover from Customer any damages and or expenses, including Default Costs;

(c)  with notice and demand, recover all sums due and accelerate and recover the
     present  value of the  remaining  payment  stream of all Rent due under the
     defaulted  Schedule  (discounted at the same rate of interest at which such
     defaulted  Schedule was discounted with a Secured Party plus any prepayment
     fees charged to  NetWolves by the Secured  Party or, if there is no Secured
     Party,  then  discounted  at 6%) together  with all Rent and other  amounts
     currently due as liquidated damages and not as a penalty;

(d)  with notice and process of law and in compliance with  Customer's  security
     requirements,  NetWolves  may  enter  Customer's  premises  to  remove  and
     repossess the Products  without being liable to Customer for damages due to
     the repossession,  except those resulting from NetWolves',  its assignees',
     agents' or representatives' negligence; and

(e)  pursue any other remedy permitted by law or equity.

The above remedies, in NetWolves' discretion and to the extent permitted by law,
are cumulative and may be exercised successively or concurrently.

13.3  Mitigation.  Upon return of the Products  pursuant to the terms of Section
13.2, NetWolves will use its best efforts in accordance with its normal business
procedures  (and without  obligation  to give any priority to such  Products) to
mitigate  NetWolves'  damages as  described  below.  EXCEPT AS SET FORTH IN THIS
SECTION, CUSTOMER HEREBY WAIVES ANY RIGHTS NOW OR HEREAFTER CONFERRED BY STATUTE
OR OTHERWISE  WHICH MAY REQUIRE  NETWOLVES TO MITIGATE ITS DAMAGES OR MODIFY ANY
OF NETWOLVES'S  RIGHTS OR REMEDIES STATED HEREIN.  NetWolves may sell,  lease or
otherwise dispose of all or any part of the Products at a public or private sale
for cash or credit with the privilege of purchasing  the Products.  The proceeds
from any sale, lease or other disposition of the Products are defined as either:
<PAGE>
(a)  if sold or otherwise  disposed of, the cash  proceeds  less the Fair Market
     Value of the  Products  at the  expiration  of the  Initial  Term  less the
     Default Costs; or

(b)  if leased,  the present  value  (discounted  at three points over the prime
     rate  as  referenced  in  the  Wall  Street  Journal  at  the  time  of the
     mitigation) of the rentals for a term not to exceed the Initial Term,  less
     the Default Costs.

Any proceeds will be applied against  liquidated  damages and any other sums due
to NetWolves  from Customer.  However,  Customer is liable to NetWolves for, and
NetWolves  may  recover,  the  amount  by which the  proceeds  are less than the
liquidated damages and other sums due to NetWolves from Customer.

SECTION 14. ADDITIONAL PROVISIONS

14.1 Binding Nature. Each Schedule is binding upon, and inures to the benefit of
NetWolves and its assigns. CUSTOMER MAY NOT ASSIGN ITS RIGHTS OR OBLIGATIONS.

14.2 Applicable Law. THIS PRODUCT AGREEMENT AND EACH SCHEDULE IS GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ITS CONFLICT OF LAWS PROVISIONS.
NO RIGHTS OR REMEDIES  REFERRED TO IN ARTICLE 2A OF THE UNIFORM  COMMERCIAL CODE
WILL BE CONFERRED ON CUSTOMER UNLESS EXPRESSLY GRANTED HEREIN OR A SCHEDULE.

14.3  Counterparts.  Any Schedule may be executed in any number of counterparts,
each of which will be deemed an  original,  but all such  counterparts  together
constitute one and the same instrument.  If NetWolves grants a security interest
in all or any part of an Schedule, the Products or sums payable thereunder, only
that  counterpart  Schedule  marked  "Secured  Party's  Original"  can  transfer
NetWolves' rights and all other counterparts will be marked "Duplicate".

14.4 Nonspecific  Features and Licensed  Products.  If the Products are supplied
from  NetWolves'  inventory  and  contains  any  features  not  specified in the
Schedule,  Customer grants NetWolves the right to remove any such features.  Any
removal will be performed by the  manufacturer  or another  party  acceptable to
Customer,  upon the request of  NetWolves,  at a time  convenient  to  Customer,
provided that Customer will not unreasonably delay the removal of such features.

Customer acknowledges that the Products may contain or include software or other
licensed  products  of a third  party.  Customer  will  obtain  no  title to the
software or licensed  products  which at all times  remains the  property of the
owner of the  software or  licensed  products.  A license  from the owner may be
required and it is  Customer's  responsibility  to obtain any  required  license
before the use of the software or licensed product. Customer agrees to treat the
software and licensed  products as  confidential  information  of the owner,  to
observe all copyright restrictions, and not to reproduce or sell the software or
licensed products.

14.5  Additional  Documents.  Customer  will,  upon  execution  of this  Product
Agreement  and  as  may  be  requested  thereafter,  provide  NetWolves  with  a
secretary's  certificate  of incumbency  and  authority and any other  documents
reasonably  requested by NetWolves.  Upon the execution of each Schedule with an
aggregate Rent in excess of $2,000,000,  Customer will provide NetWolves with an
opinion from Customer's counsel regarding the  representations and warranties in
Section 8. Customer will furnish, upon request, audited financial statements for
the most recent period.

14.6 NetWolves' Right to Match.  Customer's rights under Section 5.2 and 7.2 are
subject to NetWolves' right to match any sublease or upgrade proposed by a third
party.  Customer will provide  NetWolves with the terms of the third party offer
and  NetWolves  will have three (3) business  days to match the offer.  Customer
shall  obtain  such  upgrade  from or sublease  the  Products  to  NetWolves  if
NetWolves has timely matched the third party offer.

14.7 Electronic  Communications.  Each of the parties may  communicate  with the
other by electronic means under mutually agreeable terms.

SECTION 15. DEFINITIONS

Assignee - means an entity to whom  NetWolves has sold or assigned its rights as
owner and lessor of the Products.

Attachment  - means any  accessory,  equipment  or device  and the  installation
thereof that does not impair the original function or use of the Products and is
<PAGE>
capable of being removed without causing  material damage to the Products and is
not an accession to the Products.

Casualty Loss - means the irreparable loss or destruction of Products.

Casualty  Value - means the greater of the aggregate  Rent  remaining to be paid
for the  balance  of the lease  term or the Fair  Market  Value of the  Products
immediately  prior to the Casualty Loss.  However,  if a Casualty Value Table is
attached to the relevant Schedule its terms will control.

Commencement  Certificate - means the NetWolves provided  certificate which must
be signed by Customer within ten (10) days of the Commencement Date as requested
by NetWolves.

Commencement Date - is defined in each Schedule.

Default Costs - means  reasonable  attorney's fees and remarking costs resulting
from a Customer default or NetWolves' enforcement of its remedies.

Event of Default - means the events described in Subsection 13.1.

Fair Market Value - means the  aggregate  amount which would be obtainable in an
arm's-length  transaction  between an  informed  and willing  buyer/user  and an
informed and willing seller under no compulsion to sell.

Initial Term - means the period of time  beginning on the first day of the first
full  Rent  Interval  following  the  Commencement  Date  for all  Products  and
continuing for the number of Rent Intervals indicated on an Schedule.

Interim  Rent - means the  pro-rata  portion of Rent due for the period from the
Commencement Date through but not including the first day of the first full Rent
Interval included in the Initial Term.

Licensed  Products - means any software or other licensed  products  attached to
the Products.

Like  Part -  means a  substituted  part  which  is lien  free  and of the  same
manufacturer  and part number as the removed part,  and which when  installed on
the Products will be eligible for maintenance  coverage with the manufacturer of
the Products.

Like Products - means  replacement  Products which are lien free and of the same
model, type, configuration and manufacture as Products.

Notice  Period - means the time  period  described  in a Schedule  during  which
Customer  may  give  NetWolves  notice  of the  termination  of the term of that
Schedule.

Overdue Rate - means the lesser of 18% per year or the maximum rate permitted by
the law of the state where the Products are located.

Owner - means the owner of the Products.

Products - means the property  described on a Schedule and any  replacement  for
that property  required or permitted by this Product Agreement or a Schedule but
not including any Attachment.

Reconfiguration  - means any change to Products  that would upgrade or downgrade
the performance capabilities of the Products in any way.

Rent - means  the  rent,  including  Interim  Rent,  Customer  will  pay for the
Products expressed in an Schedule either as a specific amount or an amount equal
to the amount which  NetWolves pays for the Products  multiplied by a lease rate
factor plus all other amounts due to NetWolves under this Product Agreement or a
Schedule.

Rent  Interval  - means a full  calendar  month or  quarter  as  indicated  on a
Schedule.

Schedule - means a Schedule which  incorporates  all of the terms and conditions
of this Product  Agreement and the Master Agreement and, for purposes of Section
14.3, its associated Commencement Certificate(s).

Secured  Party - means an  entity  to whom  NetWolves  has  granted  a  security
interest in a Schedule and related Products for the purpose of securing a loan.

IN WITNESS  WHEREOF,  the  parties  have  caused this  Product  Agreement  to be
executed  by their  duly  authorized  officers  as of the day and year first set
forth above.

_____________________________________   NETWOLVES, CORPORATION
Customer

By: _________________________________   By:  ___________________________________

Title: ______________________________   Title:  ________________________________

Form 6004  2/99
<PAGE>
                           EQUIPMENT SCHEDULE NO. ___

                                 DATED _______

                    TO THE PRODUCT AGREEMENT DATED ________

LESSEE:                         LESSOR:  NetWolves Corporation

Address for Legal Notices:      Address for All Notices:
-------------------------

Attn:  Corporate Secretary      Attn:

Address for Administrative
--------------------------
Correspondence:                 Address for Invoices:
--------------                  --------------------

Attn:                           Attn:
Phone:
Fax:                            Lessee Reference No:
                                -------------------

                                (24 digits maximum)

                                Initial Term:   48 Months

Location of Equipment:
---------------------           Rent:
                                ----
                                Estimated Equipment Rent:
                                ------------------------
                                Months 1-48: $200.00 Per Unit/ Per Month

                                Service Rent:
                                ------------
                                Installation:   $600.00
                                Ongoing Maintenance:  Months 1-12: $0
                                Months 13-48: $28.00 Per Unit/Per Month

                                Transportation Charges (Select one):
                                ----------------------------------
Attn:                           ____ Amortized Over Initial Term
Phone:                          ____  Lessee Pays Vendor Directly

EQUIPMENT (as defined below):
---------
Item            Machine  Model/
No.  Qty.  Mfg.  Type   Feature             Description
---  ----  ---- ------- -------             -----------
<PAGE>
Risk of Loss:  Pursuant to the Product  Agreement,  Lessor and Lessee agree that
the risk of loss is the responsibility of the Lessee.

Notice Period: The Notice Period will be not less than ninety (90) days nor more
than twelve (12) months  prior to the  expiration  of the Initial  Term,  or any
extension  thereof.  If Lessee gives proper written  notice of  termination  but
fails to return the Equipment on the expiration date of the Initial Term, or any
extension  thereof,  the  Schedule  will  continue  in full force and effect and
Lessee will be required to provide an additional  sixty (60) days written notice
of termination.  Such  termination  will be effective at the end of the month in
which the last day of the sixty (60) day  notice  requirement  occurs.  The Rent
will continue at the current rate until the effective date of the written notice
of termination and the Equipment is properly returned.

Special  Terms:  The  following  additional  terms are a part of this  Equipment
Schedule.  The terms and conditions of the Product  Agreement as they pertain to
this Equipment Schedule are modified and amended as follows:

For purposes of this Equipment  Schedule,  all references to "Equipment" will be
deemed to mean "Product",  and all references to "Lessee" will be deemed to mean
"Customer" as set forth in the Product Agreement. In addition, all references to
"Lessor"  will be deemed  to mean  "NetWolves  Corporation"  as set forth in the
Product Agreement.

Multiple Delivery Special Term
------------------------------
1.      Equipment
        ---------
Lessor's  obligation to lease Equipment under this Equipment Schedule applies to
Equipment  described  in this  Equipment  Schedule  for  which  Lessor  receives
Commencement Certificates from Lessee during the period from ____ to _____ up to
an aggregate  purchase  price of  $_________.  Lessee  acknowledges  that it has
either  received or approved  Lessor's  purchase  documentation.  If the cost or
configuration of the Equipment changes, Lessor may adjust the Lease Rate Factors
to reflect these additional costs or related expenses.

2.      Commencement Date
        -----------------
The  Commencement  Date for each item of Equipment  will be the day on which the
Equipment is installed and qualified for a commercially available manufacturer's
standard maintenance contract or warranty coverage. Lessee agrees to confirm the
Commencement  Date by providing  Lessor with a  Commencement  Certificate in the
form  attached  hereto.  Lessor will  summarize  all  Commencement  Certificates
received in the same calendar month into a Summary Schedule in the form attached
to this Equipment  Schedule as Exhibit I, and the Initial Term will begin on the
first day of the next  calendar  month.  Lessee  agrees that for  administrative
purposes,  including  without  limitation,  invoicing  of  Rent  and  taxes  and
assignment of an  identifying  lease number,  Lessor may  administer the Summary
Schedule as if it constituted a separate Equipment Schedule.  Alternatively,  if
Lessor  requests  Lessee  to  execute a Summary  Schedule,  Lessee  will have an
appropriate  official of Lessee execute and promptly return the Summary Schedule
to Lessor.  Executed Summary Schedules will incorporate the terms and conditions
of the Product  Agreement  and this  Equipment  Schedule  and will  constitute a
separate Equipment Schedule.

3.      Adverse Change
        --------------
If Lessee  defaults or there is an adverse change in Lessee's  credit  standing,
Lessor,  at its option with prior written notice to Lessee,  will be relieved of
its   obligations  to  lease   Equipment  for  which  Lessor  has  not  received
Commencement Certificates from Lessee prior to the date of such notice.

4.      Prepayment
        ----------
In consideration of Lessor entering into this Equipment Schedule,  Lessee agrees
to remit  payment of the Rent  payment  for Month 48 with the Rent  payment  for
Month 1.
<PAGE>
5.      Vendor Credits
        --------------
If after the Commencement Date for an item of Equipment,  Lessee finds such item
of Equipment to be  inoperable,  Lessee will seek  recourse  solely  against the
vendor of the Equipment for resolution of any problems concerning performance of
the Equipment. If the item of Equipment is replaced by the vendor, Lessee agrees
to provide Lessor with the serial number for the replacement equipment within 10
days of  replacement.  Lessor will not process any invoices  associated with the
Equipment being returned to vendor or the replacement equipment.

Notwithstanding  the foregoing,  if after the  Commencement  Date for an item of
Equipment,  Lessee  finds that (i) the vendor  has  over-charged  for an item of
Equipment,  or (ii) the vendor has shipped an incorrect item of Equipment,  upon
30 days prior written  notice from Lessee,  Lessor agrees to process any credits
received from the vendor and apply the credits to the Rent hereunder. The rental
adjustment will be effective on Lessor's next billing cycle following the 30 day
notice period.

 6.     Requirements for Return of Equipment at Lease Termination
        ---------------------------------------------------------
Lessee  will  appoint  a  principal   contact   person  (the   "Contact")   with
responsibility  for  coordinating  delivery  and  return  of  Equipment  to  one
centralized shipping location.

Lessee's Contact will provide Lessor a ten day written notice of the Equipment's
availability  for  pick-up,  but  in  no  event  prior  to  Lessee's  notice  of
termination pursuant to the "Notice Period" provision of the Schedule.

If Lessee elects to return less than all of the  Equipment,  Lessee will provide
Lessor with the description of the Equipment being returned,  including the line
number.  Upon Lessee's  request,  Lessor will provide Lessee with a report which
Lessee can use to identify the Equipment description by line number.

Lessor will make arrangements for its transportation carrier to contact Lessee's
Contact to  coordinate  the  return of the  Equipment.  Lessor's  transportation
carrier  will be  responsible  for packing the  Equipment on site on the date of
pick-up.

Lessee will be responsible and submit payment upon receipt of an invoice for the
Fair  Market  Value of any  Equipment  or  Equipment  parts which are missing or
returned damaged (the "Affected  Equipment"),  provided Lessor or its agents did
not cause such Affected Equipment.

7.      Personal Property Tax
        ---------------------
Notwithstanding  anything to the contrary  contained  in the Product  Agreement,
Lessor hereby  appoints  Lessee as its agent for the purpose of filing  personal
property tax returns.  Lessee will pay the appropriate  taxing  jurisdiction for
any  personal  property  tax owed that is  imposed  against  Lessee or Lessor in
connection  with the Equipment,  together with any penalties,  fines or interest
thereon.

Lessee agrees to pay when due and  indemnify  and hold Lessor  harmless from and
against  Lessee's  failure  to  remit  payment  of  personal  property  tax owed
(together with any related  interest or penalties not arising from negligence on
the part of Lessee) now or hereafter  imposed or assessed  against the Lessor or
the Equipment by the relevant  taxing  jurisdiction.  Lessee will cooperate with
Lessor in obtaining all relevant documentation necessary to substantiate payment
of such personal property tax if requested by Lessor.

8.      General Services Terms:
        ----------------------
Lessor will begin  performing the Services as described in the Statement of Work
attached as Exhibit II within thirty (30) days from  execution of this Equipment
Schedule.  The performance of the Services will be coterminous  with the Initial
Term of the  associated  Equipment.  The  Service  Rent  will be as set forth in
Section 9 herein.  Any change to the  Statement  of Work must be  documented  in
writing.  Lessor will have no obligation  to commence work in connection  with a
change  request  until the  change  has been  approved  in writing by Lessor and
Lessee.  Lessee will reimburse  Lessor for all reasonable  expenses  incurred in
connection with Lessor's performance under the Statement of Work.
<PAGE>
Lessor warrants that the Services will be performed in a professional manner.

EXCEPT  AS  EXPRESSLY  SET  FORTH  IN THIS  EQUIPMENT  SCHEDULE  OR THE  PRODUCT
AGREEMENT, LESSOR MAKES NO REPRESENTATIONS OR WARRANTIES WHATSOEVER,  EXPRESS OR
IMPLIED,  INCLUDING,  WITHOUT  LIMITATION,  ANY WARRANTY OF  MERCHANTABILITY  OR
FITNESS FOR A PARTICULAR PURPOSE.

Proprietary Materials will mean all materials, information and other deliverable
items  developed  under a  Statement  of Work  as  well  as  proprietary  tools,
methodologies, documentation and methods of analysis used in connection with the
Services. Lessee acknowledges and agrees that all such Proprietary Materials are
owned by  either  Lessor  or its  subcontractor  and  that  Lessee  receives  no
ownership  interest  herein.  Notwithstanding  the  foregoing,  Lessor grants to
Lessee the right to use such Proprietary  Materials  delivered to Lessee under a
Statement  of Work  for  Lessee's  internal  business  use  only and not for the
benefit of a third party.

Each party  (including  its  employees and agents) will use the same standard of
care to protect any confidential information of the other, or a subcontractor of
Lessor,  disclosed  during  negotiation  or performance of the Statement of Work
that  it  uses  to  protect  its  own  confidential  information.   Confidential
information  will not  include  information  which  (i) is or  becomes  publicly
available  through no wrongful act of the receiving party; (ii) was known by the
receiving   party  at  the  time  of  disclosure   without  any   obligation  of
confidentiality;  (iii) was acquired by the  receiving  party from a third party
without restriction on nondisclosure; or (iv) was developed independently by the
receiving party.

Lessor's  liability  to Lessee  from any  cause  whatsoever  arising  out of the
Services  under this  Equipment  Schedule  will not,  in any  event,  exceed the
aggregate of the Service  Rent paid by Lessee for the  Services,  excluding  the
monthly Rent paid for the Equipment under this Equipment  Schedule,  giving rise
to the claim  during  the  twelve  (12) month  period  immediately  prior to the
occurrence of the claim. UNDER NO CIRCUMSTANCES, WILL EITHER PARTY BE LIABLE FOR
INDIRECT, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES EVEN IF SUCH PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

Lessee will provide  Lessor with access to each site  specified in the site list
to be provided by Lessee. Lessee will be responsible for preparing each site for
the  installation  of the  Equipment,  including  but not limited to,  providing
specified  power  and  cabling,   environmental  and  wiring  requirements,  and
obtaining and maintaining  necessary  permits and  certifications.  In the event
that  Lessee  fails  to fully  prepare  the site  prior to  installation  of the
Equipment as  described  above,  Lessee will be  responsible  for an  additional
charge at the hourly rate set forth in the Statement of Work.

9.      Services Rent:
        -------------
Installation Services:  Lessee will be responsible for an Installation charge of
$600.00 upon  delivery and  acceptance  of the  Equipment as evidenced by Lessee
completing  a  Commencement  Certificate.  Lessor  will  invoice  Lessee for the
Installation charge at the time that Lessor invoices Lessee for the Rent payment
for Months 1 and 48 of the Initial Term.

On-Going  Maintenance  Services:  Service  Rent will be invoiced  and due on the
first day of each month, in advance,  beginning on the 13th month of the Initial
Term of each Summary Schedule.

10.     Principal Contact
        -----------------
Lessee  agrees that it will  designate  an  individual  as a central  contact to
coordinate  confirmation  of delivery  and  acceptance  of the  Equipment at the
end-user   locations.   The  central  contact  will   consolidate   Commencement
Certificates  from the end-user  locations prior to forwarding such verification
to Lessor.

Product  Agreement:  This Equipment  Schedule is issued  pursuant to the Product
Agreement identified on page 1 of this Equipment Schedule.  All of the terms and
conditions of the Product  Agreement are incorporated in and made a part of this
Equipment  Schedule as if expressly  described in this Equipment  Schedule,  and
this Equipment  Schedule  constitutes a separate  lease for the  Equipment.  The
parties  reaffirm  all of the  terms and  conditions  of the  Product  Agreement
(including,  without limitation, the representations and warranties set forth in
<PAGE>
the  Product  Agreement)  except as modified by this  Equipment  Schedule.  This
Equipment Schedule may not be amended or rescinded except by a writing signed by
both parties.

                                        NetWolves Corporation
as Lessee                               as Lessor

By:_______________________________      By:_____________________________________

Title:____________________________      Title:__________________________________

Date:_____________________________      Date:___________________________________

<PAGE>
                                   EXHIBIT I

                                SUMMARY SCHEDULE
                                ----------------

        This Summary Schedule dated _________ is executed  pursuant to Equipment
Schedule  No.  ______ to the  Product  Agreement  dated ____  between  NetWolves
Corporation  ("Lessor") and _______  ("Lessee").  All of the terms,  conditions,
representations  and warranties of the Product Agreement and Equipment  Schedule
No. are  incorporated  herein and made a part hereof and this  Summary  Schedule
constitutes an Equipment Schedule for the Equipment described below.

1.   Equipment:
     ---------
                         Equipment
        Qty.     Mfg.    Type/Model       Serial #       Location
        ---      ---     ----------       --------       --------

                                 "SEE ATTACHED"

2.   Commencement Date:       (See attached)
     -----------------

3.   Initial Term Begins:
     -------------------

4.   Total Equipment Cost:
     --------------------

5.   Rent:
     ----

6.   Representations of Lessee:
     -------------------------
     Each item of Equipment has been delivered to the location  indicated above,
     tested,  inspected,  found to be in good working  order and accepted by the
     Lessee on the Commencement Date.

Please sign and return one copy of this  Summary  Schedule to Lessor  within ten
(10) days of receipt.

                                        NetWolves Corporation
as Lessee                               as Lessor

By:            SAMPLE                   By:
   -----------------------------           -------------------------------------

Title:                                  Title:
      --------------------------              ----------------------------------
<PAGE>
                            COMMENCEMENT CERTIFICATE
                            ------------------------

     This Certificate dated is executed pursuant to Equipment Schedule No. _____
to  the  Product  Agreement  dated  __________  between  NetWolves  Corporation.
("Lessor") and _________ ("Lessee").

1.      Equipment:
        ---------
                         Equipment
        Qty.    Mfg.     Type/Model        Serial #          Location
        ---     ---      ----------        --------          --------

2.      Commencement Date:
        -----------------

3.      Representations of Lessee:
        -------------------------
The  Equipment  has been  delivered to the  location  indicated  above,  tested,
inspected,  found to be in good working  order and accepted by the Lessee on the
Commencement Date.

        as Lessee

        By:_________________________________

        Title:______________________________

<PAGE>
                                   EXHIBIT II

                            STATEMENT OF WORK NO. 1
                           TO THE EQUIPMENT SCHEDULE
                        DATED ____________________, 1999
                  BETWEEN NETWOLVES CORPORATION ("NETWOLVES")
                   AND _________________________ ("CUSTOMER")

1.0  Scope of Services
     NetWolves  will  provide the  following  services at the sites  detailed in
     document to be supplied by customer to the Services Schedule for Customer's
     systems.
     Installation
     Maintenance
     Tier 1 Help Desk
     Moves, Adds, Changes (Optional)
     De-Installation (Optional)
     Project Planning (management)

2.0  Service Components

     2.1  Installation
          NetWolves  will install the equipment for which site surveys have been
          completed.

          2.1.1 Service Scope

                Perform  and  review  site  survey  for each  site  and  confirm
                readiness.  Resolve any open issues to complete site  readiness.
                Develop site specific installation procedures.
                Coordinate and finalize scheduling of:

               * All involved NetWolves, Customer and third party personnel.
               * Shipping and receipt of equipment at each site.
               * Physical implementation of the equipment.
               * Testing  and  certification  of  installed  equipment  in
                 accordance with the test script.
               * Site sign-off by Customer's site representative.
               * Circuit provisioning.

          2.1.2 Service Deliverables

                Site specific installation procedures.
                Fully installed, tested, and functional equipment.
                Comprehensive installation documentation, including:
               * Descriptions, configurations  and  other  pertinent information
                  for each item of installed equipment.
               * Checklist of completed implementation steps and results.
               * Outstanding or open issues list.
               * Completed sign-off forms.

          2.1.3 Assumptions

               Customer  personnel  will be  available as scheduled to assist in
               the installation pursuant to the project plan.

               Customer  will  provide  NetWolves  with an  implementation  test
               script for each site.

               Installation  schedules will be agreed upon between NetWolves and
               Customer.
<PAGE>
               Installations will occur during normal business hours (8:00 AM to
               5:00 PM local time,  Monday through  Friday  excluding New Year's
               Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day,
               the Friday after Thanksgiving, and Christmas Day).

               NetWolves  will provide  implementation  test script per Customer
               request.

               Shipping costs are not included.

2.2  Maintenance

     NetWolves will provide maintenance for the equipment  identified in Exhibit
     B.

     2.2.1 Service Scope

          Determine maintenance coverage requirements.

          Maintain  inventory of configured "hot swap" boxes to be deployed upon
          dispatch.

          Upon  notification  from  NetWolves  help desk,  inventory box will be
          shipped overnight for installation.

          Technician will arrive at site and de-install current box, install and
          test  new  box  and  ship  broken  unit  to  Netwolves   facility  for
          refurbishment

          Provide  documentation  on  all of  the  above  to  Customer  and,  if
          appropriate,   to  the  NetWolves  Help  Desk  or  NetWolves   Network
          Management Center.

     2.2.2 Service Deliverables

          Next day on-site replacement for broken boxes

2.3  Moves, Adds and Changes (Optional)

     NetWolves  will  provide  moves,  adds,  and  changes on a demand  basis to
     facilitate modifications to the network environment.

     2.3.1 Service Scope

          Determine  scope of work to be  performed,  including  scheduling  and
          pricing.

          Coordinate  necessary  services or materials to facilitate  the change
          (equipment, software, telecommunications, etc.).

          Identify resources to perform the change (NetWolves,  Customer, and/or
          third-party personnel).

          Schedule and coordinate execution of the change.

          Execute the change and test, as applicable.

          6x12 to next day on-site response.

     2.3.2 Service Deliverables

          Implementation  of the change as  specified  by an  authorized  change
          request.

          Notification and documentation upon completion, as appropriate.

     2.3.3 Assumptions

          Moves, adds, and changes are modifications to the network  environment
          which  are  outside  the  scope  of this  Statement  of  Work  and are
          therefore priced on a demand basis.

          Customer will provide access to Customer sites where these  activities
          will be performed.

          Customer will provide site contacts,  as appropriate,  for inspection,
          decision-making and site sign-off.

          Moves,  adds and changes will only be provided  based upon  authorized
          change requests.

2.4  De-Installation (Optional)

     NetWolves  will  de-install  the equipment for which site surveys have been
     completed.

     2.4.1 Service Scope

          Development of site specific de-installation procedures.

          De-installation of equipment as determined by procedures.
<PAGE>
          Prepare equipment for shipment.

     2.4.2 Service Deliverables

          Site specific de-installation procedures.

          De-installation documentation, including:

          *    Descriptions,  serial numbers,  versions,  and/or other pertinent
               information identified in the de- installation procedures.

          *    Checklist of completed de-installation steps and results.

          *    Outstanding or open issues list.

     2.4.3 Assumptions

          NetWolves will perform  de-installations  only at those sites at which
          NetWolves is performing implementation of new equipment.

          Customer will provide a list of the equipment to be de-installed

2.5  Help Desk  Operation

*    Customer  will have access to the Help Desk on a 7x24x365  basis except for
     New Year's Day,  Memorial  Day,  July 4, Labor Day,  Thanksgiving  Day, the
     Friday after  Thanksgiving,  and Christmas  Day.  NetWolves  will route all
     calls outside of the scheduled access hours to Customer for resolution.

*    The Help Desk will  provide the first  point of contact for end users.  End
     users may submit requests to the Help Desk via telephone,  e-mail, or voice
     mail.

*    The first point of contact will consist of  providing  the initial  problem
     analysis and resolution.  Escalations will be handled under mutually agreed
     upon escalation procedures.

*    NetWolves  will  provide a Help Desk  Supervisor  who will manage the daily
     operation of the Help Desk. The Help Desk  Supervisor  will report directly
     to the NetWolves Help Desk Service  Manager who will be responsible for the
     overall management of the Help Desk.

<PAGE>

                                   Exhibit D
       to the Master Program Agreement between NetWolves Corporation and
                                 Comdisco, Inc.
                              Dated July 26, 1999

                                Related Software
                                ----------------

Fox OS
Fox A1
ESCN Navigator
ESCN Mother
ESCN Workbench
ESCN Mission Control

All training content  provided  through the ESCN System,  created or licensed by
NetWolves Corporation/The Sullivan Group.
<PAGE>
                                   Exhibit E
                               Comdisco Services
                        to the Master Program Agreement
                between NetWolves Corporation and Comdisco, Inc.
                              Dated July 26, 1999

           Form of Services Agreement and Services Schedule Attached.
<PAGE>
                                                              SERVICES AGREEMENT

This  Services  Agreement  dated  ______________________________  is made by and
between  NetWolves  Corporation  ("NetWolves")  with offices at 200  Broadhollow
Road,     Melville,     New    York    11747,     and     ______________________
__________________________________________________  ("Customer") with offices at
____________________________________________________________________________.

SECTION 1.  SCOPE

1.1 Schedules. NetWolves will provide Services under the terms and conditions of
this Services Agreement and as more particularly defined in each Schedule.  Each
Schedule  will  constitute  a separate  agreement  with  respect to the Services
provided.

1.2  Changes.  Any  change to this  Services  Agreement  must be  documented  in
writing. NetWolves will have no obligation to commence work in connection with a
change  request  until the change has been  approved in writing by NetWolves and
Customer.

1.3 NetWolves may, as it deems  appropriate,  use  subcontractors for all or any
portions of the Services.

SECTION 2.  FEES

2.1 Fees.  Customer  will pay the fees for the  Services  in the  amounts and in
accordance with the payment terms set forth in each Schedule.

2.2 Late Fee.  Whenever  any payment is not made within  thirty (30) days of the
invoice  date,  Customer  will pay  interest  at the lesser of one and  one-half
percent (1.5%) per month or the maximum amount permitted by law.

2.3.  Expenses.  Customer will reimburse  NetWolves for all reasonable  expenses
incurred in connection with services requested by Customer which are outside the
scope of the Services outlined under a Schedule.

2.4 Taxes. Customer will pay or reimburse NetWolves for any taxes, fees or other
charges  imposed by any local,  state or federal  authority  (together  with any
related interest or penalties not due to the fault of NetWolves)  resulting from
this Services  Agreement,  or from any  activities  hereunder,  except for taxes
based on NetWolves' net income.

SECTION 3.  TERM

Each  Schedule  will take effect upon the signature of both parties and continue
through the term as specified therein.

The Services to be provided under each Schedule will begin on the date set forth
in the Schedule.

SECTION 4.  WARRANTIES AND LIABILITY

4.1  Services.  NetWolves  warrants  that the  Services  will be  performed in a
professional manner.

4.2  Exclusive  Warranty.  EXCEPT  AS  EXPRESSLY  SET  FORTH IN THIS  AGREEMENT,
NETWOLVES MAKES NO REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED,
INCLUDING,  WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.

4.3  Liability.  NetWolves'  liability  to  Customer  from any cause  whatsoever
arising  out of this  Services  Agreement  will not,  in any  event,  exceed the
aggregate of the fees paid by Customer for the Services giving rise to the claim
during the twelve (12) month period  immediately  prior to the occurrence of the
claim.  UNDER NO  CIRCUMSTANCES,  WILL  EITHER  PARTY BE  LIABLE  FOR  INDIRECT,
SPECIAL,  CONSEQUENTIAL  OR PUNITIVE DAMAGES EVEN IF SUCH PARTY HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES.
<PAGE>
SECTION 5.  MUTUAL INDEMNIFICATION

Each party will indemnify and hold the other party and its employees and agents,
harmless against any and all claims, liabilities,  losses, damages and causes of
action  relating  to  bodily  injury,   including  death,  arising  out  of  the
intentional or negligent acts or omissions of the indemnifying  party during the
performance  of a  Schedule.  The  indemnifying  party,  however,  will  not  be
responsible  for injury  attributed  to the  intentional  or  negligent  acts or
omissions of the indemnified party, its employees or agents.

SECTION  6.  OWNERSHIP AND CONFIDENTIALITY

6.1 Ownership.  Proprietary  Materials will mean all materials,  information and
other deliverable items developed under a Schedule as well as proprietary tools,
methodologies, documentation and methods of analysis used in connection with the
Services.  Customer  acknowledges and agrees that all such Proprietary Materials
are owned by either  NetWolves' or its  subcontractor and that Customer receives
no ownership interest herein. Notwithstanding the foregoing, NetWolves grants to
Customer the right to use such Proprietary Materials delivered to Customer under
a Schedule for Customer's  internal business use only and not for the benefit of
a third party.  Any  proprietary  software  product will be licensed to Customer
under a separate license agreement.

6.2  Confidentiality.  Each party  (including its employees and agents) will use
the same standard of care to protect any confidential  information of the other,
or a subcontractor, disclosed during negotiation or performance of this Services
Agreement that it uses to protect its own confidential information. Confidential
information  will not  include  information  which  (i) is or  becomes  publicly
available  through no wrongful act of the receiving party; (ii) was known by the
receiving   party  at  the  time  of  disclosure   without  any   obligation  of
confidentiality;  (iii) was acquired by the  receiving  party from a third party
without restriction on nondisclosure; or (iv) was developed independently by the
receiving party.

SECTION 7.  TERMINATION

Either party may, by written notice,  terminate a Services Schedule for cause if
the  other  party  fails to cure a  material  default  under the  Schedule.  Any
material  default must be specifically  identified in the notice of termination.
After written  notice,  the notified party will have ten (10) days to remedy any
monetary  default and thirty (30) days to remedy any other  default.  Failure to
remedy the material default within the time period provided for herein will give
cause for immediate  termination.  If termination is due to Customer's  material
default, Customer will immediately pay to NetWolves the amounts then owing under
the relevant Schedule up to the date of termination. The foregoing payments will
be in addition  to all other legal and  equitable  rights of  NetWolves  and any
remedies set forth in a Services Schedule.

SECTION 8.  MISCELLANEOUS

8.1 Each party is an independent  contractor  and, except as expressly set forth
herein, will have no authority to bind or commit the other party. Nothing herein
shall be deemed or construed to create a joint  venture,  partnership  or agency
relationship between the parties.
<PAGE>
8.2 Customer  may not assign this  Services  Agreement,  or any of its rights or
obligations therein.

8.3 The waiver by either  party of a breach of any  provision  of this  Services
Agreement  will not be  construed  as a waiver  of any  subsequent  breach.  The
invalidity,  in whole or in part, of any  provision of this  Services  Agreement
will not affect the validity of the remaining provisions.

8.4 This  Services  Agreement  including  each  Schedule  represents  the entire
agreement  between  the  parties  and  supersedes  all  oral  or  other  written
agreements or understandings  between the parties concerning the Services.  This
Agreement may not be modified  unless in writing and signed by the party against
whom enforcement of the modification is sought.

8.5 Any notice,  request or other  communication  under this Services  Agreement
will be given in writing and deemed  received upon the earlier of actual receipt
or three (3) days after mailing if mailed postage  prepaid by regular or airmail
to the  address set forth above or, one day after such notice is sent by courier
or facsimile transmission.

8.6 No third party is intended to be, or will be construed to be, a  beneficiary
of any provision of this Services Agreement nor have any right to enforce any of
its provisions or to pursue any remedy for its breach.

8.7 Those terms and conditions which would, by their meaning or intent,  survive
the expiration or termination of any Schedule will so survive.

8.8  THIS SERVICES AGREEMENT AND EACH SCHEDULE
IS GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK WITHOUT REGARD TO ITS CONFLICT OF LAWS
PROVISIONS.  If there is any dispute or  litigation as a result of this Services
Agreement,  the prevailing party will be entitled to reasonable attorney's fees.
Any action by either party must be brought  within two (2) years after the cause
of action arose.

8.9 During the term of each  Schedule  and for a period of one (1) year from the
completion of the Services  thereunder,  Customer agrees not to knowingly employ
or solicit for  employment  any  NetWolves  or  subcontractor  employee  who was
involved in the furnishing of the Services under the relevant Schedule.

8.10 Terms and conditions on Customer's  purchase order or other  acknowledgment
form will be of no force or effect.
<PAGE>
8.11 NetWolves will not be considered in default hereunder due to any failure in
its  performance  of this  Services  Agreement  should such failure arise out of
causes beyond its control.  Such causes include, but are not limited to, acts of
God, acts of any federal, state or local government or authority, fires, floods,
or  other  disasters,  strikes,  degradation  of  telephone  or  other  means of
communication services or utility outages.

IN WITNESS  WHEREOF,  the  parties  have caused this  Services  Agreement  to be
executed  by their  duly  authorized  officers  as of the day and year first set
forth above.

______________________________________    NetWolves Corporation
Customer

By: __________________________________    By: __________________________________

Title: _______________________________    Title: _______________________________
Form 6000, 10/98

<PAGE>
                     SERVICES SCHEDULE DATED [INSERT DATE]
                           TO THE SERVICES AGREEMENT
                              DATED [INSERT DATE]
                  BETWEEN NETWOLVES CORPORATION ("NETWOLVES")
                        AND [CUSTOMER NAME] ("CUSTOMER")

A.   Scope of Services

     NetWolves  will provide the Services in the attached  Statement of Work. In
     the event of any conflict between this Services Schedule and a Statement of
     Work, the Statement of Work will govern.

B.   Fees

     [Include  the  details  of the  payment  schedule  here  or on an  attached
     Exhibit. As part of the payment schedule indicate when NetWolves will begin
     invoicing for each fee component.]

     Expenses will be billed monthly, or at NetWolves' option, as incurred.

C.   Commencement of the Services

     The Services will commence on [insert date that Services will begin].

D.   Term

     The term of this Schedule will commence upon  execution by both parties and
     will continue for a period of [months/weeks] from [insert trigger date].

E.   Change Control

     Upon the identification of any mutually acceptable change to this Schedule,
     Customer and NetWolves will complete a Change Authorization Form.

F.   Responsibilities

     Customer will assign a program  sponsor who will have full  authority  with
     respect  to all  matters  pertaining  to  this  Schedule  and  who  will be
     NetWolves'  primary contact.  If Customer  reassigns its program sponsor or
     such  individual  has any other conflict which would impact the delivery of
     the  Services,  Customer  will  promptly  replace  such person with another
     person  no less  qualified  or  knowledgeable  as to  Customer's  business.
     Customer will also make available to NetWolves other necessary resources on
     a timely basis and will ensure that  Customer's  personnel  involved in the
     Services have  sufficient  knowledge of all relevant  aspects of Customer's
     business,  including  technical,   financial  and  functional  requirements
     relevant to this Schedule.

     Customer  acknowledges  and agrees  that  NetWolves'  ability to perform in
     accordance  with this Schedule is  contingent  on  Customer's  accurate and
     timely  performance  of its  responsibilities.  In the event that  Customer
     fails to perform any of its  responsibilities  specified herein,  NetWolves
     may perform such responsibilities and Customer will reimburse NetWolves for
     all  costs  incurred.  Notwithstanding  the  foregoing,  NetWolves  has  no
     obligation to perform any such responsibilities.

                               Schedule - Page 1
 This document is proprietary and confidential to NetWolves, Inc. Unauthorized
                          distribution is prohibited.

<PAGE>
G.   Reviews

     When Customer review or acceptance of procedures,  plans or any other items
     are  provided  for, and  NetWolves  has not  received  written  notice from
     Customer of  acceptance  or objection  within  three (3)  business  days of
     Customer's receipt of the submitted item, the item will be deemed accepted.

H.   Delays

     In the event that  NetWolves is delayed in the  performance of the Services
     as a result of Customer's  acts or failure to act,  Customer will reimburse
     NetWolves  for all costs  incurred,  including  but not limited to any cost
     associated  with  NetWolves'  resources.  In the  event  of a delay  in the
     commencement  of the Services,  NetWolves and Customer will mutually  agree
     upon a new commencement date.

I.   Exhibits

     The Exhibits to this  Services  Schedule are hereby  incorporated  into and
     deemed to be a part of this Services Schedule.

     [List Exhibits here.]

J.   Special Terms

     Customer  will  provide  NetWolves  with access to each Site  specified  in
     Exhibit __ to enable  NetWolves to perform the  Services.  Customer will be
     responsible for preparing each Site for the  installation of the equipment,
     including  but not  limited  to,  providing  specified  power and  cabling,
     environmental  and  wiring  requirements,  and  obtaining  and  maintaining
     necessary permits and certifications.

This Services Schedule is issued pursuant to the Services  Agreement  identified
above.  All  of  the  terms  and  conditions  of  the  Services   Agreement  are
incorporated herein and made a part hereof. This Services Schedule constitutes a
separate agreement with respect to the Services provided.

_________________________________               NetWolves Corporation
Customer

By:______________________________               By:_____________________________

Title:___________________________               Title:__________________________

Date:____________________________               Date:___________________________

The terms and conditions of this Schedule,  including pricing, are valid only if
executed by [insert date].

3/99

                               Schedule - Page 2
 This document is proprietary and confidential to NetWolves, Inc. Unauthorized
                          distribution is prohibited.

<PAGE>
                                   EXHIBIT A

                            STATEMENT OF WORK NO. 1
                            TO THE SERVICES SCHEDULE
                        DATED ____________________, 1999
                        BETWEEN NETWOLVES ("NETWOLVES")
                   AND _________________________ ("CUSTOMER")

1.0  Scope of Services

     NetWolves  will  provide the  following  services at the sites  detailed in
     document to be supplied by customer to the Services Schedule for Customer's
     systems.  For purposes of this  Statement of Work,  "systems" will mean the
     equipment identified in Exhibit B.
     Installation
     Maintenance
     Tier 1 Help Desk
     Moves, Adds, Changes (Optional)
     De-Installation (Optional)

2.0  Service Components

     2.1  Installation

          NetWolves  will install the equipment for which site surveys have been
          completed.

          2.1.1 Service Scope

                Obtain  and  review  site  survey  for  each  site  and  confirm
                readiness.  Resolve any open issues to complete site  readiness.
                Develop site specific installation procedures.
                Coordinate and finalize scheduling of:

               *    All involved NetWolves, Customer and third party personnel.
               *    Shipping and receipt of equipment at each site.
               *    Physical implementation of the equipment.
               *    Testing  and   certification   of  installed   equipment  in
                    accordance with the test script.
               *    Site sign-off by Customer's site representative.

          2.1.2 Service Deliverables

               Site specific installation procedures.

               Fully installed, tested, and functional equipment.

               Comprehensive installation documentation, including:

               *    Descriptions, configurations and other pertinent information
                    for each item of installed equipment.
               *    Checklist of completed implementation steps and results.
               *    Outstanding or open issues list.
               *    Completed sign-off forms.

          2.1.3 Assumptions

               Customer  personnel  will be  available as scheduled to assist in
               the installation pursuant to the project plan.

               Customer  will  provide  NetWolves  with an  implementation  test
               script for each site.

               Installation  schedules will be agreed upon between NetWolves and
               Customer.

               Installations will occur during normal business hours (8:00 AM to
               5:00 PM local time,  Monday through  Friday  excluding New Year's
               Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day,
               the Friday after Thanksgiving, and Christmas Day).
<PAGE>
2.2  Maintenance

     NetWolves will provide maintenance for the equipment  identified in Exhibit
     B.

     2.2.1 Service Scope

          Determine maintenance coverage requirements.

          Maintain  inventory of configured "hot swap" boxes to be deployed upon
          dispatch.

          Upon  notification  from  NetWolves  help desk,  inventory box will be
          shipped overnight for installation.

          Technician will arrive at site and de-install current box, install and
          test  new  box  and  ship  broken  unit  to  Netwolves   facility  for
          refurbishment

          Provide  documentation  on  all of  the  above  to  Customer  and,  if
          appropriate,   to  the  NetWolves  Help  Desk  or  NetWolves   Network
          Management Center.

     2.2.2 Service Deliverables

          Next day on-site replacement for broken boxes

2.3  Moves, Adds and Changes (Optional)

     NetWolves  will  provide  moves,  adds,  and  changes on a demand  basis to
     facilitate modifications to the network environment.

     2.3.1 Service Scope

          Determine  scope of work to be  performed,  including  scheduling  and
          pricing.

          Coordinate  necessary  services or materials to facilitate  the change
          (equipment, software, telecommunications, etc.).

          Identify resources to perform the change (NetWolves,  Customer, and/or
          third-party personnel).

          Schedule and coordinate execution of the change.

          Execute the change and test, as applicable.

     2.3.2Service  Deliverables  Implementation of the change as specified by an
          authorized  change  request.   Notification  and  documentation   upon
          completion, as appropriate.

     2.3.3 Assumptions

          Moves, adds, and changes are modifications to the network  environment
          which  are  outside  the  scope  of this  Statement  of  Work  and are
          therefore priced on a demand basis.

          Customer will provide access to Customer sites where these  activities
          will be performed.

          Customer will provide site contacts,  as appropriate,  for inspection,
          decision-making and site sign- off.

          Moves,  adds and changes will only be provided  based upon  authorized
          change requests.

2.4  De-Installation (Optional)

     NetWolves  will  de-install  the equipment for which site surveys have been
     completed.

     2.4.1 Service Scope

          Development of site specific de-installation procedures.

          De-installation of equipment as determined by procedures.

          Prepare equipment for shipment.

     2.4.2 Service Deliverables

          Site specific de-installation procedures.

          De-installation documentation, including:

          *    Descriptions,  serial numbers,  versions,  and/or other pertinent
               information identified in the de- installation procedures.
<PAGE>
          *    Checklist of completed de-installation steps and results.

          *    Outstanding or open issues list.

     2.4.3 Assumptions

          NetWolves will perform  de-installations  only at those sites at which
          NetWolves is performing implementation of new equipment.

          Customer will provide a list of the equipment to be de-installed

2.5  Help Desk Operation

*    Customer  will have access to the Help Desk on a 7x24x365  basis except for
     New Year's Day,  Memorial  Day,  July 4, Labor Day,  Thanksgiving  Day, the
     Friday after  Thanksgiving,  and Christmas  Day.  NetWolves  will route all
     calls outside of the scheduled access hours to Customer for resolution.

*    The Help Desk will  provide the first  point of contact for end users.  End
     users may submit requests to the Help Desk via telephone,  e-mail, or voice
     mail.

*    The first point of contact will consist of  providing  the initial  problem
     analysis and resolution.  Escalations will be handled under mutually agreed
     upon escalation procedures.

*    NetWolves  will  provide a Help Desk  Supervisor  who will manage the daily
     operation of the Help Desk. The Help Desk  Supervisor  will report directly
     to the NetWolves Help Desk Service  Manager who will be responsible for the
     overall management of the Help Desk.

<PAGE>
                                   Exhibit F
                        to the Master Program Agreement
                       between NetWolves Corporation and
                                 Comdisco, Inc.
                              Dated July 26, 1999

                                Target Customer
                                ---------------

Any company or account engaged in the distance learning  application through the
Sullivan Group and NetWolves Corporation.
<PAGE>
                                   Exhibit G
                        to the Master Program Agreement
                       between NetWolves Corporation and
                                 Comdisco, Inc.
                              Dated July 26, 1999

            Form of Master Agreement and Services Schedule attached.

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