Document:

The Manitowoc Company, Inc

The Manitowoc Company, Inc.

$175,000,000

101/2% Senior Subordinated Notes due 2012

PURCHASE AGREEMENT

August 2, 2002

DEUTSCHE BANK SECURITIES INC.

CREDIT SUISSE FIRST BOSTON CORPORATION

BANC ONE CAPITAL MARKETS, INC.

FLEET SECURITIES, INC.

J.P. MORGAN SECURITIES INC.

LEHMAN BROTHERS INC.

c/o Deutsche Bank Securities Inc.

31 West 52nd Street

New York, New York 10019

Ladies and Gentlemen:

The Manitowoc Company, Inc., a Wisconsin corporation (the "Company"), and the subsidiaries of the Company listed on the signature page hereto (the "Guarantors" and, together with the Company, the "Issuers") hereby confirm their agreement with the several Initial Purchasers listed in Schedule 1 hereto (collectively, the "Initial Purchasers"), as set forth below (the "Purchase Agreement" or this "Agreement").

1. The Securities. Subject to the terms and conditions herein contained, the Company proposes to issue and sell to the Initial Purchasers $175,000,000 aggregate principal amount of its 101/2% Senior Subordinated Notes due 2012 (the "Notes"). The Notes will be unconditionally guaranteed (the "Guarantees" and, together with the Notes, the "Securities") on a senior subordinated basis by each of the Guarantors. The Securities are to be issued under an indenture (the "Indenture") to be dated as of August 8, 2002 by and among the Company, the Guarantors and The Bank of New York, as Trustee (the "Trustee").

The Securities will be issued in connection with and conditioned upon the acquisition by the Company of Grove Investors, Inc. (the "Target") (the "Acquisition") pursuant to an Agreement and Plan of Merger (the "Agreement and Plan of Merger") and the other related documents (together with the Agreement and Plan of Merger, the "Acquisition Documents") dated as of March 18, 2002. On the Closing Date, Grove Investors, Inc., Grove Holdings, Inc., Grove Worldwide, Inc., Crane Acquisition Corp., Crane Holding Inc. and Grove U.S. LLC will become parties to this Agreement for purposes of the indemnification set forth in Section 10 hereof by executing a Joinder Agreement substantially in the form attached hereto as Exhibit A (the "Joinder Agreement"). 

The Securities will be offered and sold to the Initial Purchasers without being registered under the Securities Act of 1933, as amended (the "Act"), in reliance on exemptions therefrom.

In connection with the sale of the Securities, the Company has prepared a preliminary offering memorandum dated July 19, 2002 (the "Preliminary Memorandum") and a final offering memorandum dated August 2, 2002 (the "Final Memorandum"; the Preliminary Memorandum and the Final Memorandum each herein being referred to as a "Memorandum") setting forth or including a description of the terms of the Securities (except that the Preliminary Memorandum excludes certain pricing and related information), the terms of the offering of the Securities, a description of the Issuers and any material developments relating to the Issuers occurring after the date of the most recent historical financial statements included therein.

The Initial Purchasers and their direct and indirect transferees of the Securities will be entitled to the benefits of the Registration Rights Agreement, substantially in the form attached hereto as Exhibit B (the "Registration Rights Agreement"), pursuant to which the Company and the Guarantors have agreed, among other things, to file a registration statement (the "Registration Statement") with the Securities and Exchange Commission (the "Commission") registering the Securities or the Exchange Securities (as defined in the Registration Rights Agreement) under the Act.

2. Representations and Warranties of the Company as to the Company. The Company represents and warrants to and agrees with the Initial Purchasers that:

(a)Neither the Preliminary Memorandum as of the date thereof nor the Final Memorandum nor any amendment or supplement thereto as of the date thereof and at all times subsequent thereto up to the Closing Date (as defined in Section 4 below) contained or contains any untrue statement of a material fact or omitted or omits to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except that the representations and warranties set forth in this Section 2(a) do not apply to statements or omissions made in reliance upon and in conformity with information relating to the Initial Purchasers furnished to the Company in writing by Deutsche Bank Securities Inc. expressly for use in the Preliminary Memorandum, the Final Memorandum or any amendment or supplement thereto.

(b)As of March 31, 2002, the Company had the authorized, issued and outstanding capitalization set forth in the Final Memorandum; all of the subsidiaries of the Company are listed in Schedule 2(b) attached hereto (each, a "Subsidiary" and collectively, the "Subsidiaries"); all of the outstanding shares of capital stock of the Company and the Subsidiaries have been, and as of the Closing Date will be, duly authorized and validly issued, are fully paid and nonassessable (except in the case of the Company and the Subsidiaries that are Wisconsin corporations or that otherwise are subject to Wisconsin law, as otherwise provided in Section 180.0622(2)(b) of the Wisconsin Business Corporation Law) and were not issued in violation of any preemptive or similar rights; except as set forth in the Final Memorandum, there are no (i) options, warrants or other rights to purchase, (ii) agreements or other obligations to issue or (iii) other rights to convert any obligation into, or exchange any securities for, shares of capital stock of or ownership interests in any of the Subsidiaries outstanding. Except for the Subsidiaries or as disclosed in the Final Memorandum, the Company does not own, directly or indirectly, any shares of capital stock or any other equity or long-term debt securities or have any equity interest in any firm, partnership, joint venture or other entity.

(c)Each of the Issuers is duly incorporated or otherwise organized, validly existing and in good standing under the laws of its respective jurisdiction of organization and has all requisite corporate or limited liability company power and authority to own its properties and conduct its business as now conducted and as described in the Final Memorandum; each of the Issuers is duly qualified to do business as a foreign corporation or entity in good standing in all other jurisdictions where the ownership or leasing of its properties or the conduct of its business requires such qualification, except where the failure to be so qualified would not, individually or in the aggregate, have a material adverse effect on the general affairs, management, business, financial condition or results of operations of the Issuers, taken as a whole (any such event, a "Material Adverse Effect").

(d)The Company has all requisite corporate power and authority to execute, deliver and perform its obligations under the Securities, the Exchange Securities and the Private Exchange Securities (as defined in the Registration Rights Agreement). Each of the Guarantors has all requisite corporate or limited liability company power and authority to execute, deliver and perform its obligations under the Guarantees and the guarantees of the Exchange Securities and the Private Exchange Securities. The Securities, when issued, will be in the form contemplated by the Indenture. The Securities, the Exchange Securities and the Private Exchange Securities, have each been duly and validly authorized by the Company, and the Guarantees and the guarantees of the Exchange Securities and the Private Exchange Securities have each been duly and validly authorized by the Guarantors and, when executed by the Company and each of the Guarantors and authenticated by the Trustee in accordance with the provisions of the Indenture and delivered to and paid for by the Initial Purchasers in accordance with the terms of this Agreement (or issued in accordance with the Registration Rights Agreement, in the case of the Exchange Securities and the Private Exchange Securities) will constitute valid and legally binding obligations of each of the Company and the Guarantors, entitled to the benefits of the Indenture, and enforceable against each of the Company and the Guarantors in accordance with their terms, except that the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar laws now or hereafter in effect relating to creditors' rights generally, and (ii) general principles of equity and the discretion of the court before which any proceeding therefor may be brought.

(e)Each of the Issuers has all requisite corporate or limited liability company power and authority to execute, deliver and perform its obligations under the Indenture. The Indenture meets the requirements for qualification under the Trust Indenture Act of 1939, as amended (the "TIA"). The Indenture has been duly and validly authorized by the Issuers and, when executed and delivered by the Issuers (assuming the due authorization, execution and delivery by the Trustee), will constitute a valid and legally binding agreement of the Issuers, enforceable against each Issuer in accordance with its terms, except that the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors' rights generally and (ii) general principles of equity and the discretion of the court before which any proceeding therefor may be brought.

(f)Each of the Issuers has all requisite corporate or limited liability company power and authority to execute, deliver and perform its obligations under the Registration Rights Agreement. The Registration Rights Agreement has been duly and validly authorized by the Issuers and, when executed and delivered by the Issuers (assuming the due authorization, execution and delivery by the Initial Purchasers), will constitute a valid and legally binding agreement of the Issuers enforceable against each Issuer in accordance with its terms, except that (A) the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors' rights generally, and (ii) general principles of equity and the discretion of the court before which any proceeding therefor may be brought and (B) any rights to indemnity or contribution thereunder may be limited by federal and state securities laws and public policy considerations.

(g)Each of the Issuers has all requisite corporate or limited liability company power and authority to execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated hereby. This Agreement and the consummation by the Issuers of the transactions contemplated hereby have been duly and validly authorized by the Issuers and will be duly and validly authorized by the Target on the Closing Date. This Agreement has been duly executed and delivered by each Issuer and, upon execution of the Joinder Agreement, will be duly executed and delivered by the Target.

(h)The Company has all requisite corporate power and authority to execute, deliver and perform its obligations under the Acquisition Documents. The Acquisition Documents have been duly and validly authorized, executed and delivered by the Company and constitute valid and legally binding agreements of the Company enforceable against the Company in accordance with their terms, except that (A) the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors' rights generally, and (ii) general principles of equity and the discretion of the court before which any proceeding therefor may be brought and (B) any rights to indemnity or contribution thereunder may be limited by federal and state securities laws and public policy considerations.

(i)No consent, approval, authorization or order of any court or governmental agency or body, or third party, is required for the issuance and sale by the Issuers of the Securities to the Initial Purchasers or the consummation by the Issuers of the other transactions contemplated hereby, except (i) such as have been obtained, (ii) such as the failure to obtain would not have a Material Adverse Effect and (iii) such as may be required under state securities or "Blue Sky" laws or foreign securities laws in connection with the purchase and resale of the Securities by the Initial Purchasers, and except with respect to the registration of the Exchange Securities and Private Exchange Securities, if applicable, pursuant to the Registration Rights Agreement and the qualification of the Indenture under the TIA. None of the Issuers is (i) in violation of its certificate of incorporation or bylaws (or similar organizational document), (ii) in breach or violation of any statute, judgment, decree, order, rule or regulation applicable to it or any of its properties or assets, except for any such breach or violation that would not, individually or in the aggregate, have a Material Adverse Effect, or (iii) in breach of or default under (nor has any event occurred which, with notice or passage of time or both, would constitute a default under) or in violation of any of the terms or provisions of any indenture, mortgage, deed of trust, loan agreement, note, lease, license, franchise agreement, permit, certificate, contract or other agreement or instrument to which it is a party or to which its properties or assets is subject (collectively, "Contracts"), except for any such breach, default, violation or event that would not, individually or in the aggregate, have a Material Adverse Effect.

(j)The execution, delivery and performance by the Issuers of this Agreement and the consummation by the Issuers of the transactions contemplated hereby (including, without limitation, the issuance and sale of the Securities to the Initial Purchasers) will not conflict with or constitute or result in a breach of or a default under (or an event that with notice or passage of time or both would constitute a default under) or violation of any of (i) the terms or provisions of any Contract, except for any such conflict, breach, violation, default or event that would not, individually or in the aggregate, have a Material Adverse Effect, (ii) the certificate of incorporation or bylaws (or similar organizational document) of any Issuer or (iii) (assuming compliance with all applicable state securities or "Blue Sky" laws or foreign securities laws and assuming the accuracy of the representations and warranties of the Initial Purchasers in Section 9 hereof) any statute, judgment, decree, order, rule or regulation applicable to any Issuer or any of their respective properties or assets, except for any such conflict, breach or violation that would not, individually or in the aggregate, have a Material Adverse Effect.

(k)The execution, delivery and performance by the Issuers of the Indenture and the Registration Rights Agreement and the consummation by the Issuers of the transactions contemplated thereby (including, without limitation, the issuance and sale of the Securities to the Initial Purchasers) will not conflict with or constitute or result in a breach of or a default under (or an event that with notice or passage of time or both would constitute a default under) or violation of any of (i) the terms or provisions of any Contract, except for any such conflict, breach, violation, default or event that would not, individually or in the aggregate, have a Material Adverse Effect, (ii) the certificate of incorporation or bylaws (or similar organizational document) of any Issuer or (iii) (assuming compliance with all applicable state securities or "Blue Sky" laws or foreign securities laws and assuming the accuracy of the representations and warranties of the Initial Purchasers in Section 9 hereof) any statute, judgment, decree, order, rule or regulation applicable to any Issuer or any of their respective properties or assets, except for any such conflict, breach or violation that would not, individually or in the aggregate, have a Material Adverse Effect.

(l)The audited consolidated financial statements of the Company included in the Final Memorandum present fairly in all material respects the financial position, results of operations and cash flows of the Company at the dates and for the periods to which they relate and have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP") applied on a consistent basis, except as otherwise stated therein. The summary and selected financial and statistical data relating to the Company in the Final Memorandum present fairly in all material respects the information shown therein and have been prepared and compiled on a basis consistent with the audited financial statements included therein, except as otherwise stated therein. PricewaterhouseCoopers LLP ("PWC") is an independent public accounting firm within the meaning of the Act and the rules and regulations promulgated thereunder.

(m)The audited consolidated financial statements of the Target included in the Final Memorandum present fairly in all material respects the financial position, results of operations and cash flows of the Target at the dates and for the periods to which they relate and have been prepared in accordance with U.S. GAAP applied on a consistent basis, except as otherwise stated therein. KPMG LLP ("KPMG") is an independent accounting firm within the meaning of the Act and the rules and regulations promulgated thereunder. The audited consolidated financial statements of the Potain SAS ("Potain") included in the Final Memorandum present fairly in all material respects the financial position, results of operations and cash flows of the Potain at the dates and for the periods to which they relate and have been prepared in accordance with U.S. GAAP applied on a consistent basis, except as otherwise stated therein. Ernst & Young LLP ("E&Y" and, together with "PWC" and "KPMG," the "Independent Accountants") is an independent accounting firm within the meaning of the Act and the rules and regulations promulgated thereunder.

(n)The pro forma financial statements (including the notes thereto) and the other pro forma financial information included in the Final Memorandum (i) comply as to form in all material respects with the applicable requirements of Regulation S-X promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), (ii) except as stated therein, have been prepared in accordance with the Commission's rules and guidelines with respect to pro forma financial statements and (iii) have been properly computed on the bases described therein. The assumptions used in the preparation of the pro forma financial data and other pro forma financial information included in the Final Memorandum are reasonable and the adjustments used therein are appropriate to give effect to the transactions or circumstances referred to therein.

(o)There is not pending or, to the knowledge of the Issuers, threatened any action, suit, proceeding, inquiry or investigation to which any Issuer is a party, or to which the property or assets of any Issuer are subject, before or brought by any court, arbitrator or governmental agency or body that, if determined adversely to such Issuer, would, individually or in the aggregate, have a Material Adverse Effect or that seeks to restrain, enjoin, prevent the consummation of or otherwise challenge the issuance or sale of the Securities to be sold hereunder or the consummation of the other transactions described in the Final Memorandum.

(p)Subject to compliance with the consent decree filed July 31, 2002 between the Company and the United States Department of Justice and approved by order of the United States District Court, as described in the Final Memorandum (the "Consent Decree"), each of the Issuers possesses all licenses, permits, certificates, consents, orders, approvals and other authorizations from, and has made all declarations and filings with, all federal, state, local and other governmental authorities, all self-regulatory organizations and all courts and other tribunals, presently required or necessary to own or lease, as the case may be, and to operate its respective properties and to carry on its respective businesses as now or proposed to be conducted as set forth in the Final Memorandum ("Permits"), except where the failure to obtain such Permits would not, individually or in the aggregate, have a Material Adverse Effect; each of the Issuers has fulfilled and performed in all material respects all of its obligations with respect to such Permits and no event has occurred that allows, or after notice or lapse of time would allow, revocation or termination thereof or results in any other material impairment of the rights of the holder of any such Permit; and none of the Issuers has received any notice of any proceeding relating to revocation or modification of any such Permit, except as described in the Final Memorandum and except where such revocation or modification would not, individually or in the aggregate, have a Material Adverse Effect.

(q)Since the date of the most recent financial statements appearing in the Final Memorandum, except as described therein, (i) none of the Issuers has incurred any liabilities or obligations, direct or contingent, or entered into or agreed to enter into any transactions or contracts (written or oral) not in the ordinary course of business, which liabilities, obligations, transactions or contracts would, individually or in the aggregate, be material to the general affairs, management, business, financial condition, or results of operations of the Companies and its Subsidiaries, taken as a whole, (ii) none of the Issuers has purchased any of its outstanding capital stock, nor declared, paid or otherwise made any dividend or distribution of any kind on its capital stock (other than with respect to any of such Subsidiaries, the purchase of, or dividend or distribution on, capital stock owned by the Company or another Subsidiary and with respect to the Company, the Company's regular cash dividend to its shareholders) and (iii) there shall not have been any material change in the capital stock or long-term indebtedness of any Issuer.

(r)Each of the Issuers has filed all necessary federal, state and foreign income and franchise tax returns, except where the failure to so file such returns would not, individually or in the aggregate, have a Material Adverse Effect, and has paid all taxes shown as due thereon; and other than tax deficiencies that any of the Issuers is contesting in good faith and for which it has provided adequate reserves, there is no tax deficiency that has been asserted against any Issuer that would, individually or in the aggregate, have a Material Adverse Effect.

(s)The statistical and market-related data included in the Final Memorandum are based on or derived from sources that the Issuers reasonably believe to be reliable and accurate.

(t)None of the Issuers nor any agent acting on their behalf has taken or will take any action that might cause this Agreement or the sale of the Securities to violate Regulation T, U or X of the Board of Governors of the Federal Reserve System, in each case as in effect, or as the same may hereafter be in effect, on the Closing Date.

(u)Each of the Issuers has good and marketable title to all real property and good title to all personal property described in the Final Memorandum as being owned by it and good and marketable title to a leasehold estate in the real and personal property described in the Final Memorandum as being leased by it free and clear of all liens, charges, encumbrances or restrictions, except as described in the Final Memorandum or to the extent the failure to have such title or the existence of such liens, charges, encumbrances or restrictions would not, individually or in the aggregate, have a Material Adverse Effect. All leases, contracts and agreements to which each Issuer is a party or by which any of them is bound are valid and enforceable against it, and are valid and enforceable against the other party or parties thereto and are in full force and effect with only such exceptions as would not, individually or in the aggregate, have a Material Adverse Effect. Each of the Issuers owns or possesses adequate licenses or other rights to use all patents, trademarks, service marks, trade names, copyrights and know-how necessary to conduct the businesses now or proposed to be operated by them as described in the Final Memorandum, and no Issuer has received any notice of infringement of or conflict with (or knows of any such infringement of or conflict with) asserted rights of others with respect to any patents, trademarks, service marks, trade names, copyrights or know-how that, if such assertion of infringement or conflict were sustained, would have a Material Adverse Effect.

(v)There are no legal or governmental proceedings involving or affecting the Issuers or any of their respective properties or assets that would be required to be described in a prospectus pursuant to the Act that are not described in the Final Memorandum, nor are there any material contracts or other documents that would be required to be described in a prospectus pursuant to the Act that are not described in the Final Memorandum.

(w)Except as would not, individually or in the aggregate, have a Material Adverse Effect, and except as disclosed in the Final Memorandum, (A) each of the Issuers is in compliance with and not subject to liability under applicable Environmental Laws (as defined below), (B) each of the Issuers has made all filings and provided all notices required under any applicable Environmental Law, and has and is in compliance with all Permits required under any applicable Environmental Laws and each of them is in full force and effect, (C) there is no civil, criminal or administrative action, suit, demand, claim, hearing, notice of violation, investigation, proceeding, notice or demand letter or request for information pending or, to the knowledge of the Issuers, threatened against them under any Environmental Law, (D) no lien, charge, encumbrance or restriction has been recorded under any Environmental Law with respect to any assets, facility or property owned, operated, leased or controlled by any Issuer, (E) none of the Issuers has received notice that it has been identified as a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended ("CERCLA"), or any comparable Environmental Law; (F) no property or facility of any Issuer is (i) listed or proposed for listing on the National Priorities List under CERCLA or is (ii) listed in the Comprehensive Environmental Response, Compensation, Liability Information System List promulgated pursuant to CERCLA, or on any comparable list maintained by any state or local governmental authority; (G) none of the Issuers is subject to any order, decree or agreement requiring, or is otherwise obligated or required to perform any response or corrective action relating to any Hazardous Materials pursuant to any Environmental Law and (H) there are no past or present actions, events, operations or activities which could reasonably be expected to prevent or interfere with compliance by any of the Issuers with any applicable Environmental Law or to result in liability under any applicable Environmental Law.

For purposes of this Agreement; (A) "Environmental Laws" means the common law and all applicable laws or regulations, codes, orders, decrees, judgments or injunctions issued, promulgated, approved or entered thereunder, relating to pollution or protection of public or employee health and safety or the environment, including, without limitation, laws relating to (i) emissions, discharges, releases or threatened releases of Hazardous Materials into the environment (including, without limitation, ambient air, surface water, ground water, land surface or subsurface strata), (ii) the manufacture, processing, distribution, use, generation, treatment, storage, disposal, transport or handling of Hazardous Materials, (iii) underground and above ground storage tanks and related piping, and emissions, discharges, releases or threatened releases therefrom, and (iv) protection or restoration of natural resources such as flora, fauna and wetlands; and (B) "Hazardous Materials" means any pollutant, contaminant, waste, chemical, substance, material or constituent subject to regulation or which can give rise to liability under any Environmental Law.

(x)Except as would not, individually, or in the aggregate, have a Material Adverse Effect, there is no strike, labor dispute, slowdown or work stoppage with the employees of any Issuer that is pending or, to the knowledge of such Issuer, threatened.

(y)Except as would not, individually, or in the aggregate, have a Material Adverse Effect, each of the Issuers carries insurance in such amounts and covering such risks as is adequate for the conduct of its business and the value of its properties.

(z)Except as would not, individually, or in the aggregate, have a Material Adverse Effect, none of the Issuers has any liability for any prohibited transaction or funding deficiency or any complete or partial withdrawal liability with respect to any pension, profit sharing or other plan that is subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), to which any Issuer makes or ever has made a contribution and in which any employee of any Issuer is or has ever been a participant. With respect to such plans, each Issuer is in compliance in all material respects with all applicable provisions of ERISA.

(aa)Each of the Issuers (i) makes and keeps accurate books and records and (ii) maintains internal accounting controls that provide reasonable assurance that (A) transactions are executed in accordance with management's authorization, (B) transactions are recorded as necessary to permit preparation of its financial statements and to maintain accountability for its assets, (C) access to its assets is permitted only in accordance with management's authorization and (D) the reported accountability for its assets is compared with existing assets at reasonable intervals.

(bb)None of the Issuers is an "investment company" or "promoter" or "principal underwriter" for an "investment company," as such terms are defined in the Investment Company Act of 1940, as amended, and the rules and regulations thereunder.

(cc)The Securities, the Indenture and the Registration Rights Agreement will conform in all material respects to the descriptions thereof in the Final Memorandum.

(dd)No holder of securities of any Issuer will be entitled to have such securities registered under the registration statements required to be filed by any Issuer pursuant to the Registration Rights Agreement other than as expressly permitted thereby.

(ee)Immediately after the consummation of the transactions contemplated by this Agreement, the fair value and present fair saleable value of the assets of each of the Company and the Subsidiaries (each on a consolidated basis) will exceed the sum of its stated liabilities and identified contingent liabilities; none of the Issuers (each on a consolidated basis) is, nor will any of the Issuers (each on a consolidated basis) be, after giving effect to the execution, delivery and performance of this Agreement, and the consummation of the transactions contemplated hereby, (a) left with unreasonably small capital with which to carry on its business as it is proposed to be conducted, (b) unable to pay its debts (contingent or otherwise) as they mature or (c) otherwise insolvent.

(ff)None of the Issuers nor any of their respective Affiliates (as defined in Rule 501(b) of Regulation D under the Act) has directly, or through any agent, (i) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any "security" (as defined in the Act) that is or could be integrated with the sale of the Securities in a manner that would require the registration under the Act of the Securities or (ii) engaged in any form of general solicitation or general advertising (as those terms are used in Regulation D under the Act) in connection with the offering of the Securities or in any manner involving a public offering within the meaning of Section 4(2) of the Act; provided, however, that no representation is made with respect to the actions of the Initial Purchasers in connection with the transaction contemplated by this Agreement. Assuming the accuracy of the representations and warranties of the Initial Purchasers in Section 9 hereof, it is not necessary in connection with the offer, sale and delivery of the Securities to the Initial Purchasers in the manner contemplated by this Agreement to register any of the Securities under the Act or to qualify the Indenture under the TIA.

(gg)No securities of any Issuer are of the same class (within the meaning of Rule 144A under the Act) as the Securities and listed on a national securities exchange registered under Section 6 of the Exchange Act, or quoted in a U.S. automated inter-dealer quotation system.

(hh)None of the Issuers has taken, nor will any of them take, directly or indirectly, any action designed to, or that might be reasonably expected to, cause or result in stabilization or manipulation of the price of the Securities.

(ii)None of the Issuers, any of their respective Affiliates or any person acting on its or their behalf (other than the Initial Purchasers) has engaged in any directed selling efforts (as that term is defined in Regulation S under the Act ("Regulation S")) with respect to the Securities; the Issuers and their respective Affiliates and any person acting on its or their behalf (other than the Initial Purchasers) have complied with the offering restrictions requirement of Regulation S.

Any certificate signed by any officer of the Issuers and delivered to the Initial Purchasers or to counsel for the Initial Purchasers shall be deemed a joint and several representation and warranty by each Issuer to the Initial Purchasers as to the matters covered thereby.

3. Representations and Warranties of the Company as to the Target. The Company represents and warrants to and agrees with the Initial Purchasers that:

(a)All of the representations and warranties of the Target contained in Article V of the Agreement and Plan of Merger were true and correct on the date of the Agreement and Plan Merger and will be true as of the Closing Date as if made on each such date, except where any failure of such representation or warranty to be true and correct could not reasonably be expected to have a Material Adverse Effect.

4. Purchase, Sale and Delivery of the Securities. On the basis of the representations, warranties, agreements and covenants herein contained and subject to the terms and conditions set forth herein, the Company agrees to issue and sell to the Initial Purchasers, and each Initial Purchaser agrees, severally and not jointly, to purchase from the Company at a purchase price of 97.5% of their principal amount thereof, the principal amount of Notes set forth opposite such Initial Purchaser's name in Schedule I hereto. One or more certificates in definitive form representing the Securities that the Initial Purchasers have agreed to purchase hereunder, and in such denomination or denominations and registered in such name or names as the Initial Purchasers request upon notice to the Company at least 36 hours prior to the Closing Date, shall be delivered by or on behalf of the Issuers to the Initial Purchasers, against payment by or on behalf of the Initial Purchasers of the purchase price therefor by wire transfer (same day funds), to such account or accounts as the Company shall specify prior to the Closing Date, or by such means as the parties hereto shall agree prior to the Closing Date. Such delivery of and payment for the Securities shall be made at the offices of Quarles & Brady LLP, 411 E. Wisconsin Ave., Milwaukee, Wisconsin, at 9:00 A.M., New York time, on August 8, 2002 or at such other place, time or date as the Initial Purchasers, on the one hand, and the Company, on the other hand, may agree upon (such time and date of delivery against payment being herein referred to as the "Closing Date"). The Company will make such certificate or certificates for the Securities available for checking and packaging by the Initial Purchasers at the offices of Deutsche Bank Securities Inc. in New York, New York, or at such other place as Deutsche Bank Securities Inc. may designate, at least 24 hours prior to the Closing Date.

5. Offering by the Initial Purchasers. The Initial Purchasers propose to make an offering of the Securities at the price and upon the terms set forth in the Final Memorandum as soon as practicable after this Agreement is entered into and as in the judgment of the Initial Purchasers is advisable.

6. Covenants of the Issuers. Each of the Issuers covenants and agrees with the Initial Purchasers that:

(a)The Issuers will not amend or supplement the Final Memorandum or any amendment or supplement thereto of which the Initial Purchasers shall not previously have been advised and furnished a copy for a reasonable period of time prior to the proposed amendment or supplement and as to which the Initial Purchasers shall not have given their consent, which consent shall not be unreasonably withheld. The Issuers will promptly, upon the reasonable request of the Initial Purchasers or counsel for the Initial Purchasers, make any amendments or supplements to the Preliminary Memorandum or the Final Memorandum that may be necessary or advisable in connection with the resale of the Securities by the Initial Purchasers.

(b)The Issuers will cooperate with the Initial Purchasers in arranging for the qualification of the Securities for offering and sale under the securities or "Blue Sky" laws of which jurisdictions as the Initial Purchasers may designate and will continue such qualifications in effect for as long as may be necessary to complete the resale of the Securities; provided, however, that in connection therewith, none of the Issuers shall be required to qualify as a foreign corporation or to execute a general consent to service of process in any jurisdiction or subject itself to taxation in excess of a nominal dollar amount in any such jurisdiction where it is not then so subject.

(c)If, at any time prior to the completion of the sale of Securities by the Initial Purchasers, any event occurs or information becomes known as a result of which the Final Memorandum as then amended or supplemented would include any untrue statement of a material fact, or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if for any other reason it is necessary at any time to amend or supplement the Final Memorandum to comply with applicable law, the Company will promptly notify the Initial Purchasers thereof and will prepare, at the expense of the Company, an amendment or supplement to the Final Memorandum that corrects such statement or omission or effects such compliance.

(d)The Issuers will, without charge, provide to the Initial Purchasers and to counsel for the Initial Purchasers as many copies of the Preliminary Memorandum and the Final Memorandum or any amendment or supplement thereto as the Initial Purchasers may reasonably request.

(e)The Issuers will apply the net proceeds from the sale of the Securities as set forth under "Use of Proceeds" in the Final Memorandum.

(f)For so long as any of the Securities remain outstanding, the Issuers will furnish to the Initial Purchasers copies of all reports and other communications (financial or otherwise) furnished by the Issuers to the Trustee or to the holders of the Securities and, as soon as available, copies of any reports or financial statements furnished to or filed by the Issuers with the Commission or any national or international securities exchange on which any class of securities of the Issuers may be listed.

(g)Prior to the Closing Date, the Company will furnish to the Initial Purchasers, as soon as they have been prepared, a copy of any unaudited interim financial statements of the Company for any period subsequent to the period covered by the most recent financial statements appearing in the Final Memorandum.

(h)None of the Issuers nor any of their Affiliates will sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any "security" (as defined in the Act) that could be integrated with the sale of the Securities in a manner that would require the registration under the Act of the Securities.

(i)None of the Issuers will engage in any form of general solicitation or general advertising (as those terms are used in Regulation D under the Act) in connection with the offering of the Securities or in any manner involving a public offering within the meaning of Section 4(2) of the Act.

(j)For so long as any of the Securities remain outstanding, the Company will make available at its expense, upon request, to any holder of such Securities and any prospective purchasers thereof the information specified in Rule 144A(d)(4) under the Act, unless the Company is then subject to Section 13 or 15(d) of the Exchange Act.

(k)The Issuers will use all reasonable efforts to (i) permit the Securities to be designated as Portal-eligible securities in accordance with the rules and regulations adopted by the NASD relating to trading in the NASD's Portal Market (the "Portal Market") and (ii) permit the Securities to be eligible for clearance and settlement through The Depository Trust Company.

(l)In connection with Securities offered and sold in an off-shore transaction (as defined in Regulation S) the Issuers will not register any transfer of such Securities not made in accordance with the provisions of Regulation S and will not, except in accordance with the provisions of Regulation S, if applicable, issue any such Securities in the form of definitive securities.

7. Expenses. The Issuers, jointly and severally, agree to pay all costs and expenses incident to the performance of their obligations under this Agreement, whether or not the transactions contemplated herein are consummated or this Agreement is terminated pursuant to Section 12 hereof, including all costs and expenses incident to (i) the printing, word processing or other production of documents with respect to the transactions contemplated hereby, including any costs of printing the Preliminary Memorandum and the Final Memorandum and any amendment or supplement thereto, and any "Blue Sky" memoranda, (ii) all arrangements relating to the delivery to the Initial Purchasers of copies of the foregoing documents, (iii) the fees and disbursements of the counsel, the accountants and any other experts or advisors retained by the Issuers, (iv) preparation (including printing), issuance and delivery to the Initial Purchasers of the Securities, (v) the qualification of the Securities under state securities and "Blue Sky" laws, including filing fees and fees and disbursements of counsel for the Initial Purchasers relating thereto, (vi) expenses in connection with the "roadshow" and any other meetings with prospective investors in the Securities, (vii) fees and expenses of the Trustee including fees and expenses of its counsel, (viii) all expenses and listing fees incurred in connection with the application for quotation of the Securities on the Portal Market and (ix) any fees charged by investment rating agencies for the rating of the Securities. If the sale of the Securities provided for herein is not consummated because any condition to the obligations of the Initial Purchasers set forth in Section 8 hereof is not satisfied, because this Agreement is terminated or because of any failure, refusal or inability on the part of the Issuers to perform all obligations and satisfy all conditions on their part to be performed or satisfied hereunder (other than solely by reason of a default by the Initial Purchasers of their obligations hereunder after all conditions hereunder have been satisfied in accordance herewith), the Issuers agree to promptly reimburse the Initial Purchasers upon demand for all reasonable out-of-pocket expenses (including reasonable fees, disbursements and charges of Cahill Gordon & Reindel, counsel for the Initial Purchasers) that shall have been incurred by the Initial Purchasers in connection with the proposed purchase and sale of the Securities.

8. Conditions of the Initial Purchasers' Obligations. The obligation of the Initial Purchasers to purchase and pay for the Securities shall, in their sole discretion, be subject to the satisfaction or waiver of the following conditions on or prior to the Closing Date:

(a)On the Closing Date, the Initial Purchasers shall have received the opinion, dated as of the Closing Date and addressed to the Initial Purchasers, of Quarles & Brady LLP, outside counsel for the Issuers, and Maurice D. Jones, Esq., General Counsel of the Company, in each case in form and substance satisfactory to the Initial Purchasers, to the effect that:
(i)Each of the Issuers is validly existing and, where applicable, in good standing under the laws of its respective jurisdiction of organization and has all requisite corporate or limited liability company power and authority to own its properties and to conduct its business as described in the Final Memorandum. 

(ii)As of March 31, 2002, the Company had the authorized, issued and outstanding capitalization set forth in the Final Memorandum. All of the outstanding shares of capital stock of the Company and the Subsidiaries have been duly authorized and validly issued, are fully paid and nonassessable by the issuer thereof (subject to the personal liability that may be imposed on shareholders by Section 180.0622(2)(b) of the Wisconsin Business Corporation Law, as judicially interpreted, for debts owing to employees for services performed, but not exceeding six months service in any one case) and were not issued in violation of any preemptive or similar rights; except as indicated otherwise on Schedule 2(b) attached hereto, all of the outstanding shares of capital stock of the Subsidiaries are owned, directly or indirectly, by the Company, free and clear of all perfected security interests and, to the knowledge of such counsel, free and clear of all other liens, encumbrances, equities and claims or restrictions on transferability (other than those imposed by the Act, the securities or "Blue Sky" laws of certain jurisdictions and liens existing under the Company's senior credit facility) or voting.

(iii)Except for the obligations of the Company to issue shares of its common stock in connection with the exercise of outstanding options granted pursuant to The Manitowoc Company, Inc. 1995 Stock Plan and The Manitowoc Company, Inc. 1999 Non-Employee Director Stock Plan, and except for shares of common stock of the Company and for options for the purchase of such shares issuable by the Company pursuant to the Acquisition Documents, (A) no options, warrants or other rights to purchase from the Issuers shares of capital stock or ownership interests in the Issuers are outstanding, (B) no agreements or other obligations to issue, or other rights to convert, any obligation into, or exchange any securities for, shares of capital stock or ownership interests in the Issuers are outstanding and (C) no holder of securities of the Issuers is entitled to have such securities registered under a registration statement filed by the Issuers pursuant to the Registration Rights Agreement.

(iv)The Company has all requisite corporate power and authority to execute, deliver and perform each of its obligations under the Indenture, the Notes, the Exchange Notes and the Private Exchange Notes; the Indenture meets the requirements for qualification under the TIA; the Indenture has been duly and validly authorized by the Company and, when duly executed and delivered by the Company (assuming the due authorization, execution and delivery thereof by the Trustee), will constitute the valid and legally binding agreement of the Company, enforceable against the Company in accordance with its terms, except that the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors' rights generally and (ii) general principles of equity and the discretion of the court before which any proceeding therefor may be brought.

(v)The Notes are in the form contemplated by the Indenture. The Notes have each been duly and validly authorized by the Company and, when duly executed and delivered by the Company and paid for by the Initial Purchasers in accordance with the terms of this Agreement (assuming the due authorization, execution and delivery of the Indenture by the Trustee and due authentication and delivery of the Notes by the Trustee in accordance with the Indenture), will constitute the valid and legally binding obligations of the Company, entitled to the benefits of the Indenture, and enforceable against the Company in accordance with their terms, except that the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors' rights generally and (ii) general principles of equity and the discretion of the court before which any proceeding therefor may be brought.

(vi)The Guarantees are in the form contemplated by the Indenture. (a) The Guarantees have been duly and validly authorized and executed by each of the Guarantors and, when the Notes are authenticated by the Trustee in accordance with the provisions of the Indenture, the Guarantees and (b) the guarantees of the Exchange Notes and the Private Exchange Notes have been duly and validly authorized by each of the Guarantors and when duly executed by each of the Guarantors (and when the Exchange Notes or the Private Exchange Notes, as the case may be, are authenticated by the Trustee in accordance with the provisions of the Indenture), in each case (a) and (b), will have been duly executed, issued and delivered and will constitute valid and legally binding obligations of the Guarantors, entitled to the benefits of the Indenture and enforceable against the Guarantors in accordance with their terms, except that the enforcement thereof may be subject to (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors' rights generally, and (ii) general principles of equity and the discretion of the court before which any proceeding therefor may be brought.

(vii)The Exchange Notes and the Private Exchange Notes have been duly and validly authorized by the Company, and when the Exchange Notes and the Private Exchange Notes are duly executed and delivered by the Company in accordance with the terms of the Registration Rights Agreement and the Indenture (assuming the due authorization, execution and delivery of the Indenture by the Trustee and due authentication and delivery of the Exchange Notes and the Private Exchange Notes by the Trustee in accordance with the Indenture), will constitute the valid and legally binding obligations of the Company, entitled to the benefits of the Indenture, and enforceable against the Company in accordance with their terms, except that the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors' rights generally and (ii) general principles of equity and the discretion of the court before which any proceeding therefor may be brought.

(viii)The Company has all requisite corporate power and authority to execute, deliver and perform its obligations under the Registration Rights Agreement; the Registration Rights Agreement has been duly and validly authorized by the Company and, when duly executed and delivered by the Company (assuming due authorization, execution and delivery thereof by the Initial Purchasers), will constitute the valid and legally binding agreement of the Company, enforceable against the Company in accordance with its terms, except that (A) the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors' rights generally and (ii) general principles of equity and the discretion of the court before which any proceeding therefor may be brought and (B) any rights to indemnity or contribution thereunder may be limited by federal and state securities laws and public policy considerations.

(ix)The Company has all requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated hereby; this Agreement and the consummation by the Company of the transactions contemplated hereby have been duly and validly authorized by the Company. This Agreement has been duly executed and delivered by the Company.

(x)The Indenture, the Securities and the Registration Rights Agreement conform in all material respects to the descriptions thereof contained in the Final Memorandum.

(xi)Except as contemplated by the Consent Decree, no legal or governmental proceedings are pending or, to the knowledge of such counsel, threatened to which any of the Issuers is a party or to which the property or assets of any Issuer is subject that, if determined adversely to such Issuer, would result, individually or in the aggregate, in a Material Adverse Effect, or that seeks to restrain, enjoin, prevent the consummation of or otherwise challenge the issuance or sale of the Notes to be sold hereunder or the consummation of the other transactions described in the Final Memorandum under the caption "Use of Proceeds."

(xii)None of the Issuers is (i) in violation of its certificate of incorporation or bylaws (or similar organizational document), (ii) to the knowledge of such counsel, in breach or violation of any statute, judgment, decree, order, rule or regulation applicable to any of them or any of their respective properties or assets, except for any such breach or violation that would not, individually or in the aggregate, have a Material Adverse Effect, or (iii) in breach or default under (nor has any event occurred that, with notice or passage of time or both, would constitute a default under) or in violation of any of the terms or provisions of any Contract known to such counsel (including in any event any of the foregoing that have been filed by the Company with the Commission), except for any such breach, default, violation or event which would not, individually or in the aggregate, have a Material Adverse Effect.

(xiii)The execution, delivery and performance of this Agreement, the Indenture, the Registration Rights Agreement, the Acquisition Documents and the consummation of the transactions contemplated hereby and thereby (including, without limitation, the issuance and sale of the Notes to the Initial Purchasers) will not conflict with or constitute or result in a breach or a default under (or an event that with notice or passage of time or both would constitute a default under) or violation of any of (i) the terms or provisions of any Contract known to such counsel (including in any event any of the foregoing that have been filed by the Company with the Commission), except for any such conflict, breach, violation, default or event that would not, individually or in the aggregate, have a Material Adverse Effect, (ii) the certificate of incorporation or bylaws (or similar organizational document) of any of the Issuers, or (iii) (assuming compliance with all applicable state securities or "Blue Sky" laws, foreign securities laws and the Consent Decree and assuming the accuracy of the representations and warranties of the Initial Purchasers in Section 9 hereof) any statute, judgment, decree, order, rule or regulation known to such counsel to be applicable to any of the Issuers or any of their respective properties or assets, except for any such conflict, breach or violation that would not, individually or in the aggregate, have a Material Adverse Effect.

(xiv)No consent, approval, authorization or order of any governmental authority is required for the issuance and sale by the Company of the Notes to the Initial Purchasers or the consummation by the Company of the other transactions contemplated hereby, except such as may be required under Blue Sky laws, as to which such counsel need express no opinion, those that have previously been obtained and those that may be required by the Act or the TIA in connection with the exchange offer contemplated by the Registration Rights Agreement.

(xv)To the knowledge of such counsel, the Company and the Subsidiaries own or possess adequate licenses or other rights to use all patents, trademarks, service marks, trade names, copyrights and know-how necessary to conduct the businesses now or proposed to be operated by them as described in the Final Memorandum, and none of the Company or the Subsidiaries has received any notice of infringement of or conflict with asserted rights of others with respect to any patents, trademarks, service marks, trade names, copyrights or know-how that, if such assertion of infringement or conflict were sustained, would have a Material Adverse Effect.

(xvi)To the knowledge of such counsel, there are no legal or governmental proceedings involving or affecting the Company or the Subsidiaries or any of their respective properties or assets that would be required to be described in a prospectus pursuant to the Act that are not described in the Final Memorandum, nor are there any material contracts or other documents that would be required to be described in a prospectus pursuant to the Act that are not described in the Final Memorandum.

(xvii)None of the Company or the Subsidiaries is, or immediately after the sale of the Notes to be sold hereunder and the application of the proceeds from such sale (as described in the Final Memorandum under the caption "Use of Proceeds") will be, an "investment company" as such term is defined in the Investment Company Act of 1940, as amended.

(xviii)No registration under the Act of the Notes is required in connection with the sale of the Notes to the Initial Purchasers as contemplated by this Agreement and the Final Memorandum or in connection with the initial resale of the Notes by the Initial Purchasers in accordance with Section 9 of this Agreement, and prior to the commencement of the Exchange Offer (as defined in the Registration Rights Agreement) or the effectiveness of the Shelf Registration Statement (as defined in the Registration Rights Agreement), the Indenture is not required to be qualified under the TIA, in each case assuming (i) (A) that the purchasers who buy such Notes in the initial resale thereof are qualified institutional buyers as defined in Rule 144A promulgated under the Act ("QIBs") or (B) that the offer or sale of the Notes is made in an offshore transaction as defined in Regulation S, (ii) the accuracy of the Initial Purchasers' representations in Section 9 and those of the Company contained in this Agreement regarding the absence of a general solicitation in connection with the sale of such Notes to the Initial Purchasers and the initial resale thereof and (iii) the due performance by the Initial Purchasers of the agreements set forth in Section 9 hereof.

(xix)Neither the consummation of the transactions contemplated by this Agreement nor the sale, issuance, execution or delivery of the Notes will violate Regulation T, U or X of the Board of Governors of the Federal Reserve System.

At the time the foregoing opinions are delivered, Quarles & Brady LLP and Maurice D. Jones shall additionally state that they have participated in conferences with officers and other representatives of the Company, representatives of the independent public accountants for the Company, representatives of the Initial Purchasers and counsel for the Initial Purchasers, at which conferences the contents of the Final Memorandum and related matters were discussed, and, although they have not independently verified and are not passing upon and assumes no responsibility for the accuracy, completeness or fairness of the statements contained in the Final Memorandum (except to the extent specified in subsection 8(a)(x)), no facts have come to such counsel's attention that lead it to believe that the Final Memorandum, on the date thereof or at the Closing Date, contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading (it being understood that such firm need express no opinion with respect to the financial statements and related notes thereto and the other financial and accounting data derived from the Company's books and records included in the Final Memorandum). 

References to the Final Memorandum in this subsection (a) shall include any amendment or supplement thereto prepared in accordance with the provisions of this Agreement at the Closing Date.

(b)On the Closing Date, the Initial Purchasers shall have received the opinion, in form and substance satisfactory to the Initial Purchasers, dated as of the Closing Date and addressed to the Initial Purchasers, of Cahill Gordon & Reindel, counsel for the Initial Purchasers, with respect to certain legal matters relating to this Agreement and such other related matters as the Initial Purchasers may reasonably require. In rendering such opinion, Cahill Gordon & Reindel shall have received and may rely upon such certificates and other documents and information as it may reasonably request to pass upon such matters.

(c)The Initial Purchasers shall have received from the Independent Accountants a comfort letter or letters dated the date hereof and a bring down comfort letter from PWC dated as of the Closing Date, in form and substance reasonably satisfactory to counsel for the Initial Purchasers.

(d)The representations and warranties of the Issuers contained in this Agreement shall be true and correct in all material respects (except those already qualified by materiality or Material Adverse Effect which shall be true and correct) on and as of the date hereof and on and as of the Closing Date as if made on and as of the Closing Date; the statements of the Issuers' officers made pursuant to any certificate delivered in accordance with the provisions hereof shall be true and correct in all material respects (except those already qualified by materiality or Material Adverse Effect which shall be true and correct) on and as of the date made and on and as of the Closing Date; the Issuers shall have performed all covenants and agreements and satisfied all conditions on their part to be performed or satisfied, in each case in all material respects hereunder at or prior to the Closing Date; and, except as described in the Final Memorandum (exclusive of any amendment or supplement thereto after the date hereof), subsequent to the date of the most recent financial statements in such Final Memorandum, there shall have been no event or development, and no information shall have become known, that, individually or in the aggregate, has or would be reasonably likely to have a Material Adverse Effect.

(e)The sale of the Securities hereunder shall not be enjoined (temporarily or permanently) on the Closing Date.

(f)Subsequent to the date of the most recent financial statements in the Final Memorandum (exclusive of any amendment or supplement thereto after the date hereof), none of the Issuers shall have sustained any loss or interference with respect to its business or properties from fire, flood, hurricane, accident or other calamity, whether or not covered by insurance, or from any strike, labor dispute, slow down or work stoppage or from any legal or governmental proceeding, order or decree, which loss or interference, individually or in the aggregate, has or would be reasonably likely to have a Material Adverse Effect.

(g)The Initial Purchasers shall have received a certificate of the Company, dated the Closing Date, signed on behalf of the Company by its Chairman of the Board, President, General Counsel or any Senior Vice President and the Chief Financial Officer, to the effect that:
(i)The representations and warranties of the Company contained in this Agreement are true and correct in all material respects on and as of the date hereof and on and as of the Closing Date, and the Company has performed all covenants and agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to the Closing Date;

(ii)At the Closing Date, since the date hereof or since the date of the most recent financial statements in the Final Memorandum (exclusive of any amendment or supplement thereto after the date hereof), no event or development has occurred, and no information has become known, that, individually or in the aggregate, has or would be reasonably likely to have a Material Adverse Effect; and

(iii)The sale of the Securities hereunder has not been enjoined (temporarily or permanently).

(h)On the Closing Date, the Initial Purchasers shall have received all of the following duly executed and delivered: 
(i)a copy of the Registration Rights Agreement executed by the Issuers and such agreement shall be in full force and effect at all times from and after the Closing Date;

(ii)a copy of the Joinder Agreement executed by the Target and such agreement shall be in full force and effect at all times from and after the Closing Date;

(iii)a copy of the Indenture executed by the Issuers and such agreement shall be in full force and effect at all times from and after the Closing Date;

(iv)copies of the Acquisition Documents executed by the Company and the Target and such documents shall be in full force and effect at all times from and after the Closing Date.

(i)The Acquisition shall have occurred in accordance with the terms of the Acquisition Documents.

On or before the Closing Date, the Initial Purchasers and counsel for the Initial Purchasers shall have received such further documents, opinions, certificates, letters and schedules or instruments relating to the business, corporate, legal and financial affairs of the Issuers as they shall have heretofore reasonably requested from the Issuers.

All such documents, opinions, certificates, letters, schedules or instruments delivered pursuant to this Agreement will comply with the provisions hereof only if they are reasonably satisfactory in all material respects to the Initial Purchasers and counsel for the Initial Purchasers. The Issuers shall furnish to the Initial Purchasers such conformed copies of such documents, opinions, certificates, letters, schedules and instruments in such quantities as the Initial Purchasers shall reasonably request.

9. Offering of Securities; Restrictions on Transfer. (a)  The Initial Purchasers agree with Issuers that (i) they have not and will not solicit offers for, or offer or sell, the Securities by any form of general solicitation or general advertising (as those terms are used in Regulation D under the Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Act; (ii) they have and will solicit offers for the Securities only from, and will offer the Securities only to (A) in the case of offers inside the United States, persons whom the Initial Purchasers reasonably believe to be QIBs or, if any such person is buying for one or more institutional accounts for which such person is acting as fiduciary or agent, only when such person has represented to the Initial Purchasers that each such account is a QIB, to whom notice has been given that such sale or delivery is being made in reliance on Rule 144A, and, in each case, in transactions under Rule 144A and (B) in the case of offers outside the United States, to persons other than U.S. persons ("non-U.S. purchasers," which term shall include dealers or other professional fiduciaries in the United States acting on a discretionary basis for non-U.S. beneficial owners (other than an estate or trust)); provided, however, that, in the case of this clause (B), in purchasing such Securities such persons are deemed to have represented and agreed as provided under the caption "Transfer Restrictions" contained in the Final Memorandum (or, if the Final Memorandum is not in existence, in the most recent Memorandum); (iii) they have not offered or sold and, prior to the date six months after the date of issuance of the Notes, will not offer or sell any Notes to persons in the United Kingdom except to persons whose ordinary activities involve them in acquiring, holding, managing or disposing of investments (as principal or agent) for the purposes of their businesses or otherwise in circumstances which have not resulted and will not result in an offer to the public in the United Kingdom within the meaning of the Public Offers of Securities Regulations 1995 (as amended); (iv) they have only communicated or caused to be communicated and will only communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000) received by it in connection with the issue or sale of any Notes in circumstances in which Section 21(1) of the Financial Services and Markets Act of 2000 does not apply to us or the Guarantors; and (v) they have complied and will comply with all applicable provisions of the Financial Services and Markets Act 2000 with respect to anything done by it in relation to the Notes in, from or otherwise involving the United Kingdom.

(b)Each of the Initial Purchasers represents and warrants with respect to offers and sales outside the United States that (i) it has and will comply with all applicable laws and regulations in each jurisdiction in which it acquires, offers, sells or delivers Securities or has in its possession or distributes any Memorandum or any such other material, in all cases at its own expense; (ii) the Securities have not been and will not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in accordance with Regulation S under the Act or pursuant to an exemption from the registration requirements of the Act; and (iii) it has offered the Securities and will offer and sell the Securities (A) as part of its distribution at any time and (B) otherwise until 40 days after the later of the commencement of the offering or the Closing Date, only in accordance with Rule 903 of Regulation S and, accordingly, neither it nor any persons acting on its behalf have engaged or will engage in any directed selling efforts (within the meaning of Regulation S) with respect to the Securities, and any such persons have complied and will comply with the offering restrictions requirement of Regulation S.

Terms used in this Section 9 and not defined in this Agreement have the meanings given to them in Regulation S.

10. Indemnification and Contribution. (a) The Issuers, jointly and severally, agree to indemnify and hold harmless the Initial Purchasers and each person, if any, who controls the Initial Purchasers within the meaning of Section 15 of the Act or Section 20 of the Exchange Act against any losses, claims, damages or liabilities to which the Initial Purchasers or such controlling person may become subject under the Act, the Exchange Act or otherwise, insofar as any such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon:
(i)any untrue statement or alleged untrue statement made by the Issuers in Sections 2 and 3 hereof; 

(ii)any untrue statement or alleged untrue statement of any material fact contained in any Memorandum or any amendment or supplement thereto; or

(iii)the omission or alleged omission to state, in any Memorandum or any amendment or supplement thereto, a material fact required to be stated therein or necessary to make the statements therein not misleading,

and will reimburse, as incurred, the Initial Purchasers and each such controlling person for any legal or other expenses reasonably incurred by the Initial Purchasers or such controlling person in connection with investigating, defending against or appearing as a third-party witness in connection with any such loss, claim, damage, liability or action; provided, however, the Issuers will not be liable in any such case to the extent that any such loss, claim, damage, or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in any Memorandum or any amendment or supplement thereto in reliance upon and in conformity with written information concerning the Initial Purchasers furnished to the Issuers by the Initial Purchasers specifically for use therein, and provided further, that the Issuers will not be liable to the Initial Purchasers or any person controlling the Initial Purchasers with respect to any such untrue statement or alleged untrue statement or omission or alleged omission made in any Preliminary Memorandum that is corrected in the Final Memorandum (or any amendment or supplement thereto) if the person asserting any such loss, claim, damage or liability purchased Securities from the Initial Purchasers but was not sent or given a copy of the Final Memorandum (as amended or supplemented) in any case where such delivery of the Final Memorandum (as amended or supplemented) was required by the Act, unless such failure to deliver the Final Memorandum (as amended or supplemented) was a result of noncompliance by the Issuers with Section 6 hereof. The indemnity provided for in this Section 10 will be in addition to any liability that the Issuers may otherwise have to the indemnified parties. The Issuers shall not be liable under this Section 10 for any settlement of any claim or action effected without the Company's consent, which shall not be unreasonably withheld.

(b)Each Initial Purchaser, severally and not jointly, agrees to indemnify and hold harmless the Issuers, their directors, their officers and each person, if any, who controls the Issuers within the meaning of Section 15 of the Act or Section 20 of the Exchange Act against any losses, claims, damages or liabilities to which the Issuers or any such director, officer or controlling person may become subject under the Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of any material fact contained in any Memorandum or any amendment or supplement thereto, or (ii) the omission or the alleged omission to state therein a material fact required to be stated in any Memorandum or any amendment or supplement thereto, or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information concerning the Initial Purchasers, furnished to the Issuers by the Initial Purchasers through Deutsche Bank Securities Inc. specifically for use therein; and subject to the limitation set forth immediately preceding this clause, will reimburse, as incurred, any legal or other expenses reasonably incurred by the Issuers or any such director, officer or controlling person in connection with investigating or defending against or appearing as a third party witness in connection with any such loss, claim, damage, liability or action in respect thereof. The indemnity provided for in this Section 10 will be in addition to any liability that the Initial Purchasers may otherwise have to the indemnified parties. An Initial Purchaser shall not be liable under this Section 10 for any settlement of any claim or action effected without its consent, which shall not be unreasonably withheld. The Issuers shall not, without the prior written consent of an Initial Purchaser, effect any settlement or compromise of any pending or threatened proceeding in respect of which such Initial Purchaser is or could have been a party, or indemnity could have been sought hereunder by such Initial Purchaser, unless such settlement (A) includes an unconditional written release of such Initial Purchaser, in form and substance reasonably satisfactory to such Initial Purchaser, from all liability on claims that are the subject matter of such proceeding and (B) does not include any statement as to or an admission of fault, culpability or failure to act by or on behalf of such Initial Purchaser.

(c)Promptly after receipt by an indemnified party under this Section 10 of notice of the commencement of any action for which such indemnified party is entitled to indemnification under this Section 10, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 10, notify the indemnifying party of the commencement thereof in writing; but the omission to so notify the indemnifying party (i) will not relieve it from any liability under paragraph (a) or (b) above unless and to the extent such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraphs (a) and (b) above. In case any such action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party; provided, however, that if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest, (ii) the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party, or (iii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after receipt by the indemnifying party of notice of the institution of such action, then, in each such case, the indemnifying party shall not have the right to direct the defense of such action on behalf of such indemnified party or parties and such indemnified party or parties shall have the right to select separate counsel to defend such action on behalf of such indemnified party or parties. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof and approval by such indemnified party of counsel appointed to defend such action, the indemnifying party will not be liable to such indemnified party under this Section 10 for any legal or other expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense thereof, unless (i) the indemnified party shall have employed separate counsel in accordance with the proviso to the immediately preceding sentence (it being understood, however, that in connection with such action the indemnifying party shall not be liable for the expenses of more than one separate counsel (in addition to local counsel) in any one action or separate but substantially similar actions in the same jurisdiction arising out of the same general allegations or circumstances, designated by the Initial Purchasers in the case of paragraph (a) of this Section 10 or the Issuers in the case of paragraph (b) of this Section 10, representing the indemnified parties under such paragraph (a) or paragraph (b), as the case may be, who are parties to such action or actions) or (ii) the indemnifying party has authorized in writing the employment of counsel for the indemnified party at the expense of the indemnifying party. All fees and expenses reimbursed pursuant to this paragraph (c) shall be reimbursed as they are incurred. After such notice from the indemnifying party to such indemnified party, the indemnifying party will not be liable for the costs and expenses of any settlement of such action effected by such indemnified party without the prior written consent of the indemnifying party (which consent shall not be unreasonably withheld), unless such indemnified party waived in writing its rights under this Section 10, in which case the indemnified party may effect such a settlement without such consent.

(d)In circumstances in which the indemnity agreement provided for in the preceding paragraphs of this Section 10 is unavailable to, or insufficient to hold harmless, an indemnified party in respect of any losses, claims, damages or liabilities (or actions in respect thereof), each indemnifying party, in order to provide for just and equitable contribution, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect (i) the relative benefits received by the indemnifying party or parties on the one hand and the indemnified party on the other from the offering of the Securities or (ii) if the allocation provided by the foregoing clause (i) is not permitted by applicable law, not only such relative benefits but also the relative fault of the indemnifying party or parties on the one hand and the indemnified party on the other in connection with the statements or omissions or alleged statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in respect thereof). The relative benefits received by the Issuers on the one hand and any Initial Purchaser on the other shall be deemed to be in the same proportion as the total proceeds from the offering (before deducting expenses) received by the Issuers bear to the total discounts and commissions received by such Initial Purchaser. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Issuers on the one hand, or an Initial Purchaser on the other, the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission or alleged statement or omission, and any other equitable considerations appropriate in the circumstances. The Issuers and the Initial Purchasers agree that it would not be equitable if the amount of such contribution were determined by pro rata or per capita allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the first sentence of this paragraph (d). Notwithstanding any other provision of this paragraph (d), no Initial Purchaser shall be obligated to make contributions hereunder that in the aggregate exceed the total discounts, commissions and other compensation received by such Initial Purchaser under this Agreement, less the aggregate amount of any damages that such Initial Purchaser has otherwise been required to pay by reason of the untrue or alleged untrue statements or the omissions or alleged omissions to state a material fact, and no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Initial Purchasers' obligations to contribute pursuant to this Section 10(d) are several in proportion to their respective purchase obligations hereunder and not joint. For purposes of this paragraph (d), each person, if any, who controls an Initial Purchaser within the meaning of Section 15 of the Act or Section 20 of the Exchange Act shall have the same rights to contribution as the Initial Purchasers, and each director of the Issuers, each officer of the Issuers and each person, if any, who controls the Issuers within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, shall have the same rights to contribution as the Issuers.

11. Survival Clause. The respective representations, warranties, agreements, covenants, indemnities and other statements of the Issuers, their officers and the Initial Purchasers set forth in this Agreement or made by or on behalf of them pursuant to this Agreement shall remain in full force and effect, regardless of (i) any investigation made by or on behalf of the Issuers, any of their officers or directors, the Initial Purchasers or any controlling person referred to in Section 10 hereof and (ii) delivery of and payment for the Securities. The respective agreements, covenants, indemnities and other statements set forth in Sections 7, 10, 11 and 16 hereof shall remain in full force and effect, regardless of any termination or cancellation of this Agreement.

12. Termination. (a) This Agreement may be terminated in the sole discretion of the Initial Purchasers by notice to the Issuers given prior to the Closing Date in the event that the Issuers shall have failed, refused or been unable to perform in all material respects all obligations and satisfy in all material respects all conditions on their part to be performed or satisfied hereunder at or prior thereto or, if at or prior to the Closing Date:
(i)any of the Issuers shall have sustained any loss or interference with respect to its businesses or properties from fire, flood, hurricane, accident or other calamity, whether or not covered by insurance, or from any strike, labor dispute, slow down or work stoppage or any legal or governmental proceeding, which loss or interference, in the sole judgment of the Initial Purchasers, has had or has a Material Adverse Effect, or there shall have been, in the sole judgment of the Initial Purchasers, any event or development that, individually or in the aggregate, has or could be reasonably likely to have a Material Adverse Effect (including without limitation a change in control of the Issuers), except in each case as described in the Final Memorandum (exclusive of any amendment or supplement thereto);

(ii)trading in securities of the Company or in securities generally on the New York Stock Exchange, American Stock Exchange or the Nasdaq National Market shall have been suspended or materially limited or minimum or maximum prices shall have been established on any such exchange or market;

(iii)a banking moratorium shall have been declared by New York or United States authorities or a national disruption shall have occurred in commercial banking or securities settlement or clearance services in the United States;

(iv)there shall have been (A) an outbreak or escalation of hostilities either within or outside of the United States, or (B) an outbreak or escalation of any other insurrection or armed conflict involving the United States or any other national or international calamity or emergency or (C) any material change in the United States or international financial markets that, in the case of (A), (B) or (C) above and in the sole judgment of the Initial Purchasers, makes it impracticable or inadvisable to proceed with the offering or the delivery of the Securities as contemplated by the Final Memorandum; or

(v)any securities of the Company shall have been downgraded or placed on any "watch list" for possible downgrading by any nationally recognized statistical rating organization.

(b)Termination of this Agreement pursuant to this Section 12 shall be without liability of any party to any other party except as provided in Section 11 hereof.

13. Information Supplied by the Initial Purchasers. The statements set forth in (i) the last sentence of the sixth paragraph on page i and (ii) in the second and third sentences of the third paragraph, the fourth paragraph, the third sentence of the eighth paragraph and the ninth paragraph under the heading "Private Placement" in the Final Memorandum (to the extent such statements relate to the Initial Purchasers) constitute the only information furnished by the Initial Purchasers to the Issuers for the purposes of Sections 2(a) and 10 hereof.

14. Notices. All communications hereunder shall be in writing and, if sent to the Initial Purchasers, shall be mailed or delivered to (i) Deutsche Bank Securities Inc., 31 West 52nd Street, New York, New York 10019, Attention: Corporate Finance Department; if sent to the Issuers, shall be mailed or delivered to the Issuers at 500 South 16th Street, Manitowoc, Wisconsin 54220, Attention: General Counsel; with a copy to Quarles & Brady LLP 411 East Wisconsin Avenue, Milwaukee, WI 53202, Attention: Fred G. Lautz, Esq.

All such notices and communications shall be deemed to have been duly given: when delivered by hand, if personally delivered; five business days after being deposited in the mail, postage prepaid, if mailed; and one business day after being timely delivered to a next-day air courier.

15. Successors. This Agreement shall inure to the benefit of and be binding upon the Initial Purchasers, the Issuers and their respective successors and legal representatives, and nothing expressed or mentioned in this Agreement is intended or shall be construed to give any other person any legal or equitable right, remedy or claim under or in respect of this Agreement, or any provisions herein contained; this Agreement and all conditions and provisions hereof being intended to be and being for the sole and exclusive benefit of such persons and for the benefit of no other person except that (i) the indemnities of the Issuers contained in Section 10 of this Agreement shall also be for the benefit of any person or persons who control the Initial Purchasers within the meaning of Section 15 of the Act or Section 20 of the Exchange Act and (ii) the indemnities of the Initial Purchasers contained in Section 10 of this Agreement shall also be for the benefit of the directors of the Issuers, their officers and any person or persons who control the Issuers within the meaning of Section 10 of the Act or Section 20 of the Exchange Act. No purchaser of Securities from the Initial Purchasers will be deemed a successor because of such purchase.

16. APPLICABLE LAW. THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT, AND THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED WHOLLY THEREIN, WITHOUT GIVING EFFECT TO ANY PROVISIONS THEREOF RELATING TO CONFLICTS OF LAW.

17. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

If the foregoing correctly sets forth our understanding, please indicate your acceptance thereof in the space provided below for that purpose, whereupon this letter shall constitute a binding agreement between the Issuers and the Initial Purchasers.

                                                                               Very truly yours,

                                                                               THE MANITOWOC COMPANY, INC.

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President, General

Counsel and Secretary

	
 

	
MANITOWOC CRANE COMPANIES, 

     INC.

	
 

	
By:  /s/ Stanley St. John                  

Name: Stanley St. John

Title: President

	
 

	
MANITOWOC MARINE GROUP, LLC

	
 

	
By:  The Manitowoc Company, Inc.,

	
      as sole member and manager

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President, General Counsel and Secretary

	
 

	
MANITOWOC FOODSERVICE

      COMPANIES, INC.

	
 

	
By:  /s/ Stanley St. John                  

Name: Stanley St. John

Title: President

	
MANITOWOC WESTERN COMPANY, 

     INC.

	
 

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

	
 

	
MANITOWOC RE-

     MANUFACTURING, INC.

	
 

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

	
 

	
MANITOWOC CRANES, INC.

	
 

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

	
 

	
WEST-MANITOWOC, INC.

	
 

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

	
 

	
FEMCO MACHINE COMPANY, INC.

	
 

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

	

 

	
MANITOWOC CP, INC.

	
 

	
 

	
By:  /s/ Stanley St. John                   

Name: Stanley St. John

Title: President

	
 

	
KMT REFRIGERATION, INC.

	
 

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

	
 

	
HARFORD DURACOOL, LLC

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

	
 

	
DIVERSIFIED REFRIGERATION, INC.

	
 

	
By:  /s/ Maurice D. Jones                

Name: Maurice D. Jones

Title: Vice President and Secretary

	
 

	
SERVEND SALES CORP.

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

	
 

	
MANITOWOC BEVERAGE

     SYSTEMS, INC.

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

	
MANITOWOC ICE, INC.

	
 

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

	
 

	
MANITOWOC EQUIPMENT WORKS,      INC.

	
 

	
 

	
By:  /s/ Maurice D. Jones                

Name: Maurice D. Jones

Title: Vice President and Secretary

	
 

	
MANITOWOC FP, INC.

	
 

	
 

	
By:  /s/ Stanley St. John                  

Name: Stanley St. John

Title: President

	
 

	
KMT SALES CORP.

	
 

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

	
 

	
MANITOWOC BEVERAGE

     EQUIPMENT, INC.

	
 

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

	
 

	
NORTH CENTRAL CRANE &

     EXCAVATOR SALES CORP.

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

	
 

	
ENVIRONMENTAL REHAB, INC.

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

	
 

	
MANITOWOC MEC, INC.

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

	
 

	
MARINETTE MARINE

     CORPORATION

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

	
 

	
POTAIN CORPORATION

	
 

	
By:  /s/ Maurice D. Jones                 

Name: Maurice D. Jones

Title: Vice President and Secretary

 

 

The foregoing Agreement is hereby con-

firmed and accepted as of the date first 

above written.

DEUTSCHE BANK SECURITIES INC.

CREDIT SUISSE FIRST BOSTON CORPORATION

BANC ONE CAPITAL MARKETS, INC.

FLEET SECURITIES, INC.

J.P. MORGAN SECURITIES INC.

LEHMAN BROTHERS INC.

DEUTSCHE BANK SECURITIES INC.
By:  /s/ Jeffrey A. Baker                   

Name: Jeffrey A. Baker

Title: Director

By:  /s/ Thomas Maloney                  

Name: Thomas Maloney

Title: Managing Director

SCHEDULE 1

	
Initial Purchaser
	
Principal Amount

	
Deutsche Bank Securities Inc.
	
$52,500,000

	
Credit Suisse First Boston Corporation
	
52,500,000

	
Banc One Capital Markets, Inc.
	
35,000,000

	
Fleet Securities, Inc.
	
17,500,000

	
J.P. Morgan Securities Inc.
	
10,500,000

	
Lehman Brothers Inc.
	
7,000,000

	
	
                              

	
Total  
	
$175,000,000

 

SCHEDULE 2(b)

Subsidiaries of the Company

	
Subsidiaries of The Manitowoc Company, Inc.
	
 

	
 
	
 

	
Manitowoc Crane Companies, Inc. 
	
(Nevada)

	
Manitowoc International Sales Corp.
	
(Barbados)

	
Manitowoc Foodservice Companies, Inc. 
	
(Nevada)

	
North Central Crane & Excavator Sales Corp.
	
(Nevada)

	
Manitowoc Marine Group, LLC
	
(Nevada)

	
Manitowoc (Bermuda) Ltd.
	
(Bermuda)

	
Environmental Rehab, Inc.
	
(Wisconsin)

	
Manitowoc Western Company, Inc.
	
(Wisconsin)

	
Manitowoc FAPG S.r.l.
	
(Italy)

	
 
	
 

	
Subsidiaries of Manitowoc Crane Companies, Inc.
	
 

	
 
	
 

	
Femco Machine Company, Inc.
	
(Nevada)

	
Manitowoc Cranes, Inc.
	
(Wisconsin)

	
West-Manitowoc, Inc.
	
(Wisconsin)

	
Manitowoc Re-Manufacturing, Inc.
	
(Wisconsin)

	
Manitowoc CP, Inc.
	
(Nevada)

	
Manitowoc Boom Trucks, Inc.
	
(Texas)

	
Manitowoc MEC, Inc.
	
(Nevada)

	
 
	
 

	
Subsidiary of Manitowoc Boomtrucks, Inc.
	
 

	
 
	
 

	
Manimex S.A. de C.V.
	
(Mexico)

	
 
	
 

	
Subsidiary of Manitowoc MEC, Inc.
	
 

	
 
	
 

	
Manitowoc Korea Company, Ltd.
	
(Korea)

	
 
	
 

	
Subsidiaries of Manitowoc Foodservice Companies, Inc.
	
 

	
 
	
 

	
Manitowoc Ice, Inc.
	
(Wisconsin)

	
Manitowoc Equipment Works, Inc.
	
(Nevada)

	
Manitowoc Beverage Systems, Inc.
	
(Nevada)

	
Mutiplex GmbH
	
(Germany)

	
KMT Refrigeration, Inc.
	
(Wisconsin)

	
Diversified Refrigeration, Inc.
	
(Tennessee)

	
Manitowoc FP, Inc.
	
(Nevada)

	
Servend Sales Corp.
	
(Nevada)

	
Manitowoc Beverage Equipment, Inc.
	
(Missouri)

	
KMT Sales Corp.
	
(Nevada)

	
 
	
 

	
Subsidiary of KMT Refrigeration, Inc.
	
 

	
 
	
 

	
Harford Duracool, LLC
	
(Wisconsin)

	
 
	
 

	
Subsidiary of Manitowoc Marine Group, LLC
	
 

	
 
	
 

	
Marinette Marine Corporation
	
(Wisconsin)

	
 
	
 

	
Subsidiaries of Manitowoc (Bermuda) Ltd.
	
 

	
 
	
 

	
Manitowoc (Barbados) Ltd.
	
(Barbados)

	
Manitowoc Europe Holdings Ltd.
	
(United Kingdom)

	
 
	
 

	
Subsidiaries of Manitowoc Europe Holdings Ltd.
	
 

	
 
	
 

	
Manitowoc France SAS
	
(France)

	
Manitowoc Europe Ltd.
	
(United Kingdom)

	
 
	
 

	
Subsidiary of Manitowoc FAPG S.r.l.
	
 

	
 
	
 

	
Fabbrica Apparecchiature per la Producione di Ghiaccia Srl
	
(Italy)

	
 
	
 

	
Subsidiaries of Manitowoc France SAS
	
 

	
 
	
 

	
     Potain SAS
	
(France)

	
 
	
 

	
Subsidiaries of Potain SAS
	
 

	
 
	
 

	
     SCI les Sthenes du Plateau
	
(France)

	
     Potain UK Ltd
	
(England)

	
     SCI les Aulnettes
	
(France)

	
     Potain Ire Ltd(1)
	
(Ireland)

	
     SAM Sologat SRL
	
(France)

	
     Potain Corporation
	
(Delaware)

	
     Potain Zhangjiagang Ltd
	
(China)

	
     Potain Ltda(2)
	
(Brazil)

	
     Liftlux Potain GmbH
	
(Germany)

	
     BPGR Sarl
	
(France)

	
     Noe Pereira Filhos Lda(3)
	
(Portugal)

	
     Potain Spa
	
(Italy)

	
     Potain GmbH
	
(Germany)

	
     Potain Pte Ltd
	
(Singapore)

	
     Manitowoc Potain Pte Ltd
	
(Singapore)

	
     Potain Belgium
	
(Belgium)

	
 
	
 

	
Subsidiaries of BPGR Sarl
	
 

	
 
	
 

	
     Axiome de Re SA
	
(Luxembourg)

	
 
	
 

	
Subsidiaries of Noe Pereira Filhos Lda
	
 

	
 
	
 

	
     Potain Portugal Equipamentos Para a Construcao SA
	
(Portugal)

	
 
	
 

	
Subsidiaries of Potain Spa
	
 

	
 
	
 

	
     Potain Italia Spa
	
(Italy)

	
     Potain International Spa
	
(Italy)

	
     Potain Industrie Spa
	
(Italy)

	
 
	
 

	
Subsidiaries of Potain GmbH
	
 

	
 
	
 

	
     Potain S.R.O.
	
(Czech Republic)

	
     Potain Hungaria Kft
	
(Hungary)

	
     Potain Polska
	
(Poland)

	
     Cadillon GmbH
	
(Germany)

	
     Potain Technick GmbH
	
(Germany)

	
     Solum Grundstucks Vermeitungsgesellschaft mbH
	
(Germany)

	
 
	
 

	
Subsidiaries of Potain Pte Ltd
	
 

	
 
	
 

	
     Potain Pty
	
(Australia)

	
     Potain Inc(4)
	
(Philippines)

	
 
	
 

	
Subsidiaries of Manitowoc Potain Pte Ltd
	
 

	
 
	
 

	
     Manitowoc (Hangzhou) Refrigeration Co Ltd
	
(China)

	
     Shanghai Manitowoc International Trading Co Ltd
	
(China)

______________________________

(1)51.0% owned.

(2)74.1% owned.

(3)99.64% owned.

(4)70.0% owned.

Exhibit A

The Manitowoc Company, Inc.

$175,000,000

101/2% Senior Subordinated Notes due 2012

JOINDER AGREEMENT

, 2002

DEUTSCHE BANK SECURITIES INC.

31 West 52nd Street

New York, NY 10019

Ladies and Gentlemen:

Reference is hereby made to that certain purchase agreement (the "Purchase Agreement") dated as of August 2, 2002 among The Manitowoc Company, Inc., a Wisconsin corporation (the "Company"), the guarantors named therein (the "Guarantors") and Deutsche Bank Securities Inc., Credit Suisse First Boston Corporation, Banc One Capital Markets, Inc., Fleet Securities, Inc., J.P. Morgan Securities Inc. and Lehman Brothers Inc. (the "Initial Purchasers"). Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Purchase Agreement.

Each of the undersigned hereby acknowledges that it has received and reviewed a copy of the Purchase Agreement and all other documents it deems fit to enter into this Joinder Agreement (the "Joinder Agreement"), and acknowledges and agrees to (i) join and become a party to the Purchase Agreement for purposes of Section 10 thereof as indicated by its signature below; (ii) be bound by all covenants, agreements, representations, warranties and acknowledgments attributable to an indemnifying party in the Purchase Agreement as if made by, and with respect to, each signatory hereto; and (iii) perform all obligations and duties required of an indemnifying party pursuant to the Purchase Agreement.

Each of the undersigned hereby represents and warrants to and agrees with the Initial Purchasers that it has all the requisite corporate power and authority to execute, deliver and perform its obligations under this Joinder Agreement and that when this Joinder Agreement is executed and delivered, it will constitute a valid and legally binding agreement enforceable against each of the undersigned in accordance with its terms.

THE VALIDITY AND INTERPRETATION OF THIS JOINDER AGREEMENT, AND THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED WHOLLY THEREIN.

IN WITNESS WHEREOF, each of the undersigned has caused this Joinder Agreement to be duly executed and delivered by its proper and duly authorized officer as of the date set forth above.

	
 

	
Very truly yours,

	
 

	
GROVE INVESTORS, INC.

	
 

	
 

	
By:                                                     

Name:

Title:

	
 

	
GROVE HOLDINGS, INC.

	
 

	
 

	
By:                                                     

Name:

Title:

	
 

	
GROVE WORLDWIDE, INC.

	
 

	
By:                                                      

Name:

Title:

	
 

	
CRANE ACQUISITION CORP.

	
 

	
By:                                                     

Name:

Title:

	
 

	
CRANE HOLDING INC.

	
 

	
By:                                                     

Name:

Title:

 

 

 

	
GROVE U.S. LLC

	
 

	
By:

as sole member and manager

	
 

	
By:                                                     

Name:

Title:

The foregoing Joinder Agreement is hereby 

confirmed and accepted as of the date first 

above written.

DEUTSCHE BANK SECURITIES INC.

CREDIT SUISSE FIRST BOSTON CORPORATION

BANC ONE CAPITAL MARKETS, INC.

FLEET SECURITIES, INC.

J.P. MORGAN SECURITIES INC.

LEHMAN BROTHERS INC.

DEUTSCHE BANK SECURITIES INC.
By:                                                             

Name:

Title:

By:                                                             

Name:

Title:

Exhibit B

[Registration Rights Agreement]

[separately filed]EXECUTION COPY

================================================================================

                          ABN AMRO MORTGAGE CORPORATION

                                    Depositor

                                       and

                          ABN AMRO MORTGAGE GROUP, INC.

                                    Servicer

                                       and

                               JPMORGAN CHASE BANK

                                     Trustee

                              _____________________

                         POOLING AND SERVICING AGREEMENT

                            Dated as of July 1, 2002

                              _____________________

                                  $286,839,418

                       Mortgage Pass-Through Certificates

                                  Series 2002-6

================================================================================

<PAGE>

<TABLE>
<CAPTION>
                                                 TABLE OF CONTENTS

<S>                                                                                                              <C>
                                                     ARTICLE I

                                                    DEFINITIONS

                                                    ARTICLE II

                                             CONVEYANCE OF TRUST FUND;
                                         ORIGINAL ISSUANCE OF CERTIFICATES
         Section  2.1      CONVEYANCE OF TRUST FUND..............................................................41
         Section  2.2      ACCEPTANCE BY TRUSTEE.................................................................44
         Section  2.3      REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR WITH RESPECT TO THE LOANS.............46
         Section  2.4      AUTHENTICATION AND DELIVERY OF CERTIFICATES; DESIGNATION OF CERTIFICATES AS
                           REMIC REGULAR AND RESIDUAL INTERESTS..................................................50
         Section  2.5      DESIGNATION OF STARTUP DAY............................................................51
         Section  2.6      NO CONTRIBUTIONS......................................................................51
         Section  2.7      REPRESENTATIONS AND WARRANTIES OF THE SERVICER........................................51

                                                    ARTICLE III

                                       ADMINISTRATION AND SERVICING OF LOANS
         Section  3.1      SERVICER TO ACT AS SERVICER; ADMINISTRATION OF THE LOANS..............................52
         Section  3.2      COLLECTION OF CERTAIN LOAN PAYMENTS; CUSTODIAL ACCOUNT FOR P&I........................55
         Section  3.3      PERMITTED WITHDRAWALS FROM THE CUSTODIAL ACCOUNT FOR P&I..............................57
         Section  3.4      TAXES, ASSESSMENTS AND SIMILAR ITEMS; ESCROW ACCOUNTS.................................59
         Section  3.5      MAINTENANCE OF INSURANCE..............................................................59
         Section  3.6      ENFORCEMENT OF DUE-ON-SALE CLAUSES; ASSUMPTION AND SUBSTITUTION AGREEMENTS............61
         Section  3.7      REALIZATION UPON DEFAULTED LOANS......................................................62
         Section  3.8      TRUSTEE TO COOPERATE; RELEASE OF MORTGAGE FILES.......................................64
         Section  3.9      SERVICING COMPENSATION................................................................64
         Section  3.10     REPORTS TO THE TRUSTEE; CUSTODIAL ACCOUNT FOR P&I STATEMENTS..........................65
         Section  3.11     ANNUAL STATEMENT AS TO COMPLIANCE.....................................................65
         Section  3.12     ANNUAL INDEPENDENT PUBLIC ACCOUNTANTS' SERVICING REPORT...............................66
         Section  3.13     ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING THE LOANS...................66
         Section  3.14     [RESERVED]............................................................................66
         Section  3.15     SALE OF DEFAULTED LOANS AND REO PROPERTIES............................................66
         Section  3.16     DELEGATION OF DUTIES..................................................................68

                                                         i

<PAGE>

         Section  3.17     [RESERVED]............................................................................68
         Section  3.18     [RESERVED]............................................................................68
         Section  3.19     APPOINTMENT OF A SPECIAL SERVICER.....................................................68
         Section  3.20     ALLOCATION OF REALIZED LOSSES.........................................................69

                                                    ARTICLE IV

                                     PAYMENTS TO CERTIFICATEHOLDERS; ADVANCES;
                                              STATEMENTS AND REPORTS
         Section  4.1      DISTRIBUTIONS TO CERTIFICATEHOLDERS...................................................70
         Section  4.2      STATEMENTS TO CERTIFICATEHOLDERS......................................................71
         Section  4.3      ADVANCES BY THE SERVICER; DISTRIBUTION REPORTS TO THE TRUSTEE.........................72
         Section  4.4      NONRECOVERABLE ADVANCES...............................................................73
         Section  4.5      FORECLOSURE REPORTS...................................................................74
         Section  4.6      ADJUSTMENT OF SERVICING FEES WITH RESPECT TO PAYOFFS..................................74
         Section  4.7      PROHIBITED TRANSACTIONS TAXES AND OTHER TAXES.........................................74
         Section  4.8      TAX ADMINISTRATION....................................................................75
         Section  4.9      EQUAL STATUS OF SERVICING FEE.........................................................76
         Section  4.10     APPOINTMENT OF PAYING AGENT AND CERTIFICATE ADMINISTRATOR.............................76

                                                     ARTICLE V

                                                 THE CERTIFICATES
         Section  5.1      THE CERTIFICATES......................................................................76
         Section  5.2      CERTIFICATES ISSUABLE IN CLASSES; DISTRIBUTIONS OF PRINCIPAL AND INTEREST;
                           AUTHORIZED DENOMINATIONS..............................................................83
         Section  5.3      REGISTRATION OF TRANSFER AND EXCHANGE OF CERTIFICATES.................................83
         Section  5.4      MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES.....................................84
         Section  5.5      PERSONS DEEMED OWNERS.................................................................84
         Section  5.6      TEMPORARY CERTIFICATES................................................................84
         Section  5.7      BOOK-ENTRY FOR BOOK-ENTRY CERTIFICATES................................................85
         Section  5.8      NOTICES TO CLEARING AGENCY............................................................86
         Section  5.9      DEFINITIVE CERTIFICATES...............................................................86
         Section  5.10     [RESERVED]............................................................................87
         Section  5.11     [RESERVED]............................................................................87
         Section  5.12     TRANSFER RESTRICTIONS.................................................................87
         Section  5.13     LEGENDING OF CERTIFICATES.............................................................90
         Section  5.14     LIMITATION ON TRANSFER OF OWNERSHIP RIGHTS............................................93

                                                    ARTICLE VI

                                                         ii

<PAGE>

                                          THE DEPOSITOR AND THE SERVICER
         Section  6.1      LIABILITY OF THE DEPOSITOR AND THE SERVICER...........................................98
         Section  6.2      MERGER OR CONSOLIDATION OF THE DEPOSITOR OR THE SERVICER..............................98
         Section  6.3      LIMITATION ON LIABILITY OF THE SERVICER AND OTHERS....................................98
         Section  6.4      SERVICER NOT TO RESIGN................................................................99

                                                    ARTICLE VII

                                                      DEFAULT
         Section  7.1      EVENTS OF DEFAULT....................................................................100
         Section  7.2      OTHER REMEDIES OF TRUSTEE............................................................101
         Section  7.3      DIRECTIONS BY CERTIFICATEHOLDERS AND DUTIES OF TRUSTEE DURING EVENT OF DEFAULT,......102
         Section  7.4      ACTION UPON CERTAIN FAILURES OF SERVICER AND UPON EVENT OF DEFAULT...................102
         Section  7.5      APPOINTMENT OF SUCCESSOR SERVICER....................................................102
         Section  7.6      NOTIFICATION TO CERTIFICATEHOLDERS...................................................104

                                                   ARTICLE VIII

                                              CONCERNING THE TRUSTEE
         Section  8.1      DUTIES OF TRUSTEE....................................................................104
         Section  8.2      CERTAIN MATTERS AFFECTING TRUSTEE....................................................106
         Section  8.3      TRUSTEE NOT REQUIRED TO MAKE INVESTIGATION...........................................107
         Section  8.4      TRUSTEE NOT LIABLE FOR CERTIFICATES OR LOANS.........................................107
         Section  8.5      TRUSTEE MAY OWN CERTIFICATES.........................................................108
         Section  8.6      SERVICER TO PAY TRUSTEE'S FEES AND EXPENSES..........................................108
         Section  8.7      ELIGIBILITY REQUIREMENTS FOR TRUSTEE.................................................108
         Section  8.8      RESIGNATION AND REMOVAL OF TRUSTEE...................................................109
         Section  8.9      SUCCESSOR TRUSTEE....................................................................109
         Section  8.10     MERGER OR CONSOLIDATION OF TRUSTEE...................................................110
         Section  8.11     APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE........................................110
         Section  8.12     APPOINTMENT OF CUSTODIANS............................................................111
         Section  8.13     AUTHENTICATING AGENT.................................................................111
         Section  8.14     BLOOMBERG............................................................................112
         Section  8.15     REPORTS TO SECURITIES AND EXCHANGE COMMISSION........................................112
         Section  8.16     CALCULATION OF LIBOR.................................................................113

                                                    ARTICLE IX

                                                        iii

<PAGE>

                                                    TERMINATION
         Section  9.1      TERMINATION UPON PURCHASE BY THE SERVICER OR LIQUIDATION OF ALL LOANS................114
         Section  9.2      TRUSTS IRREVOCABLE...................................................................115
         Section  9.3      ADDITIONAL TERMINATION REQUIREMENTS..................................................115

                                                     ARTICLE X

                                             MISCELLANEOUS PROVISIONS
         Section  10.1     AMENDMENT............................................................................116
         Section  10.2     RECORDATION OF AGREEMENT.............................................................117
         Section  10.3     LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS...........................................118
         Section  10.4     GOVERNING LAW; JURISDICTION..........................................................118
         Section  10.5     NOTICES..............................................................................118
         Section  10.6     SEVERABILITY OF PROVISIONS...........................................................119
</TABLE>

                                                         iv

<PAGE>

<TABLE>
<CAPTION>
EXHIBITS
<S>                        <C>
Exhibit A         -        Forms of Certificates
Exhibit B         -        Form of Residual Certificate
Exhibit C         -        [Reserved]
Exhibit D         -        Schedule of Loans
Exhibit E         -        Fields of Loan Information
Exhibit F         -        Form of Transfer Certificate for Exchange or Transfer From Rule 144A
                           Global Certificate to Regulation S Global Certificate
Exhibit G         -        Form of Transfer Certificate for Exchange or Transfer
                           From Regulation S Global Certificate to Rule 144A Global Certificate
Exhibit H         -        [Reserved]
Exhibit I         -        Form of Transferor Certificate
Exhibit J         -        Form of Transferee Affidavit and Agreement
Exhibit K         -        Form of Additional Matter Incorporated into the Form of the Certificates
Exhibit L         -        Form of Rule 144A Investment Representation
Exhibit M         -        [Reserved]
Exhibit N         -        [Reserved]
Exhibit O         -        [Reserved]
Exhibit P         -        [Reserved]
Exhibit Q         -        Bloomberg Data
Exhibit R         -        Form of Special Servicing Agreement
</TABLE>

                                       iii

<PAGE>

         This Pooling and Servicing Agreement, dated and effective as of July 1,
2002 (this "Agreement"), is executed by and among ABN AMRO Mortgage Corporation,
as depositor (the "Depositor"), ABN AMRO Mortgage Group, Inc., as servicer (the
"Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee"). Capitalized
terms used in this Agreement and not otherwise defined have the meanings
ascribed to such terms in Article I hereof.

                              PRELIMINARY STATEMENT

         The Depositor at the Closing Date is the owner of the Loans and the
other property being conveyed by it to the Trustee for inclusion in the Trust
Fund. On the Closing Date, the Depositor will acquire the Certificates from the
Trust Fund as consideration for its transfer to the Trust Fund of the Loans and
certain other assets and will be the owner of the Certificates. The Depositor
has duly authorized the execution and delivery of this Agreement to provide for
the conveyance to the Trustee of the Loans and the issuance to the Depositor of
the Certificates representing in the aggregate the entire beneficial ownership
of the Trust Fund. All covenants and agreements made by the Depositor, the
Servicer and the Trustee herein with respect to the Loans and the other property
constituting the Trust Fund are for the benefit of the Holders from time to time
of the Certificates. The Depositor and the Servicer are entering into this
Agreement, and the Trustee is accepting the trust created hereby, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged.

         The Certificates issued hereunder, other than the Class B-3, Class B-4
and Class B-5 Certificates have been offered for sale pursuant to a Prospectus,
dated July 24, 2002, and a Prospectus Supplement, dated July 24, 2002 of the
Depositor (together, the "Prospectus"). The Class B-3, Class B-4 and Class B-5
Certificates have been offered for sale pursuant to a Private Placement
Memorandum dated July 25, 2002. The Trust Fund created hereunder is intended to
be the "Trust" as described in the Prospectus and the Private Placement
Memorandum and the Certificates are intended to be the "Certificates" described
therein.

         As provided herein, the Trustee will elect to treat the segregated pool
of assets consisting of the Loans and other related assets in the Trust Fund
subject to this Agreement as a REMIC for federal income tax purposes, and such
segregated pool of assets will be designated as "REMIC I." Component R-1 of the
Class R Certificate will represent the sole class of "residual interests" in
REMIC I for purposes of the REMIC Provisions under federal income tax law.

         As provided herein, the Trustee will elect to treat the segregated pool
of assets consisting of the REMIC I Regular Interests as a REMIC for federal
income tax purposes, and such segregated pool of assets will be designated as
"REMIC II". Component R-2 of the Class R Certificate will represent the sole
class of "residual interests" in REMIC II for purposes of the REMIC Provisions
under federal income tax law. The following table irrevocably sets forth the
designations, the Remittance Rate and initial Class Principal Balance for each
Class of Certificates which, together with the Class R-2 Component, constitute
the entire beneficial interests in REMIC II. Determined solely for purposes of
satisfying Treasury regulation section 1.860G-1(a)(4)(iii), the "latest possible
maturity date" for each of the REMIC I Regular Interests and for each Class of
Certificates shall be

<PAGE>

the first Distribution Date that is at least two years after the end of the
remaining amortization schedule of the Loan in the Mortgage Pool that has, as of
the Closing Date, the longest remaining amortization schedule, irrespective of
its scheduled maturity. The following table sets forth the designation,
Remittance Rate, initial Class Principal Balance, and Last Scheduled
Distribution Date for each Class of Certificates comprising the beneficial
interests in REMIC II and the Class R Certificate:

<TABLE>
<CAPTION>
                                                  INITIAL CLASS
                                                    PRINCIPAL             LAST SCHEDULED
                            REMITTANCE             OR NOTIONAL             DISTRIBUTION
    DESIGNATION              RATE (1)                BALANCE                   DATE*
    -----------              --------                -------                   -----
<S>                           <C>                <C>                      <C>
Class A-1                     6.00%              $85,263,000.00           August 25, 2032
Class A-2                     5.80%               50,000,000.00           August 25, 2032
Class A-3                     5.70%               50,000,000.00           August 25, 2032
Class A-4                     6.00%               10,703,000.00           August 25, 2032
Class A-5               Adjustable Rate(2)        41,000,000.00           August 25, 2032
Class A-6               Adjustable Rate(3)        41,000,000.00           August 25, 2032
Class A-7                     6.50%(4)            13,511,000.00           August 25, 2032
Class A-8                     6.50%(5)             3,151,230.00           August 25, 2032
Class A-9                     6.50%(6)            28,700,000.00           August 25, 2032
Class A-10                    6.50%(7)               100,000.00           August 25, 2032
Class A-X                     6.50%(8)            10,607,035.00           August 25, 2032
Class A-P                     0.00%(9)               637,318.00           August 25, 2032
Class M                       6.50%                4,040,000.00           August 25, 2032
Class B-1                     6.50%                1,731,000.00           August 25, 2032
Class B-2                     6.50%                1,154,000.00           August 25, 2032
Class B-3                     6.50%                  721,000.00           August 25, 2032
Class B-4                     6.50%                  432,000.00           August 25, 2032
Class B-5                     6.50%                  579,954.31           August 25, 2032
Class R+                      6.50%                   100(10)             August 25, 2032
</TABLE>

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

*        The Distribution Date in the month after the maturity date for the
         latest maturing Loan.
+        The Class R Certificate is entitled to receive the Residual
         Distribution Amount and Excess Liquidation Proceeds.
(1)      Interest distributed to the Certificates (other than the Principal Only
         Certificates) on each Distribution Date will have accrued during the
         preceding calendar month at the applicable per annum Remittance Rate.

                                       2
<PAGE>

(2)      Interest will accrue on the Class A-5 Certificates at an initial
         interest rate of 2.34% and after the first Distribution Date at a rate
         per annum of 0.50% above LIBOR, determined monthly as described herein,
         subject to a maximum rate of 9.00% and a minimum rate of 0.50%.
(3)      Interest will accrue on the Class A-6 Certificates at an initial
         interest rate of 6.66% and after the first Distribution Date at a rate
         per annum of 8.50% minus LIBOR, determined monthly as described herein,
         subject to a maximum rate of 8.50% and a minimum rate of 0.00%. The
         Class A-6 Certificates will accrue interest on the Class A-6 Notional
         Amount (as defined herein).
(4)      On each Distribution Date prior to the Credit Support Depletion Date
         (as defined herein), an amount equal to the Class A-7 Accrual Amount
         will be added to the Class A-7 Class Principal Balance, and such amount
         will be distributed as principal to the Class A-1, Class A-2, Class
         A-3, Class A-5 and Class A-7 Certificates as described herein and will
         not be distributed as interest to the Class A-7 Certificates.
(5)      The Class A-8 Certificates will accrue interest on the Class A-8
         Notional Amount (as defined herein).
(6)      The Class A-9 Certificates will generally not be entitled to receive
         any distributions of principal, Principal Prepayments or Liquidation
         Proceeds until the Distribution Date in August 2007.
(7)      The Class A-10 Certificates will generally not be entitled to receive
         any distributions of principal, Principal Prepayments or Liquidation
         Proceeds until the Distribution Date in August 2007.
(8)      The Class A-X Certificates will accrue interest on the Class A-X
         Notional Amount (as defined herein).
(9)      The Class A-P Certificates will not be entitled to distributions of
         interest and will receive principal only in respect of the Loans with
         Pass-Through Rates that are less than 6.50% per annum.
(10)     The Class R Certificate will be comprised of two components, component
         R-1, which represents the sole residual interest in REMIC I (as defined
         herein), and component R-2, which represents the sole residual interest
         in REMIC II (as defined herein).

                                       3
<PAGE>

                               W I T N E S S E T H
                               - - - - - - - - - -

         In consideration of the mutual agreements herein contained, the
Depositor, the Servicer and the Trustee agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

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

         ACCRETION DIRECTED CERTIFICATES: The Class A-1, Class A-2, Class A-3,
Class A-4 and Class A-5 Certificates.

         ACCRUAL CERTIFICATES: The Class A-7 Certificates.

         ADVANCE: An Advance made by the Servicer pursuant to Section 4.3.

         ADJUSTABLE RATE CERTIFICATES: The Class A-5 and Class A-6 Certificates.

         AFFILIATE: With respect to any specified Person, any other Person
controlling or controlled by or under common control with such specified Person.
For the purposes of this definition, "control" when used with respect to any
specified Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms "controlling" and
"controlled" have meanings correlative to the foregoing. The Trustee may obtain
and rely on an Officer's Certificate of the Servicer or the Depositor to
determine whether any Person is an Affiliate of such party.

         AGENT MEMBERS: Members of, or participants in, a Clearing Agency.

         AGGREGATE CERTIFICATE PRINCIPAL BALANCE: At any given time, the sum of
the then current Class Principal Balances of all Classes of Certificates.

         AGREEMENT: This Pooling and Servicing Agreement and all amendments and
supplements hereto.

         ALTA: The American Land Title Association, or any successor.

         ANNIVERSARY: Each anniversary of the Cut-off Date.

         APPLICABLE PROCEDURES: As defined in Section 5.7 thereof.

                                        4

<PAGE>

         APPRAISED VALUE: The amount set forth in an appraisal made by or for
the mortgage originator in connection with its origination of each Loan.

         ASSIGNMENT: An assignment of the Mortgage, notice of transfer or
equivalent instrument, in recordable form, sufficient under the laws of the
jurisdiction where the related Mortgaged Property is located to reflect of
record the sale and assignment of the Loan to the Trustee, which assignment,
notice of transfer or equivalent instrument may, if permitted by law, be in the
form of one or more blanket assignments covering Mortgages secured by Mortgaged
Properties located in the same county.

         AUTHENTICATING AGENT: Any authenticating agent appointed by the Trustee
pursuant to Section 8.13.

         AUTHORIZED DENOMINATION: With respect to the Certificates (other than
the Class A-6, Class A-8, Class A-X and Junior Subordinate Certificates and the
Class R Certificate), an initial Certificate Principal Balance equal to $25,000
each and integral multiples of $1 in excess thereof. With respect to the Class
A-6 Certificates and Class A-8 Certificates, an initial Notional Amount equal to
$1,000,000 each and integral multiples of $1 in excess thereof. With respect to
the Class A-X Certificates, an Initial Notional Amount equal to $500,000 each
and integral multiples of $1 in excess thereof. With respect to the Class R
Certificate, one Certificate with a Percentage Interest equal to 100%. With
respect to the Junior Subordinate Certificates, an initial Certificate Principal
Balance equal to $250,000 each and integral multiples of $1 in excess thereof,
except that one Certificate of each class may be issued in an amount that is not
a multiple of $1.

         AVAILABLE DISTRIBUTION AMOUNT: With respect to the Loans, the sum of
the following amounts:

         (1) the total amount of all cash received by or on behalf of the
Servicer with respect to such Loans by the Determination Date for such
Distribution Date and not previously distributed (including Liquidation Proceeds
and Insurance Proceeds), except:

                  (a) all Prepaid Monthly Payments;

                  (b) all Curtailments received after the applicable Prepayment
         Period (together with any interest payment received with such
         prepayments to the extent that it represents the payment of interest
         accrued on a related Loan subsequent to the applicable Prepayment
         Period);

                  (c) all Payoffs received after the applicable Prepayment
         Period (together with any interest payment received with such Payoffs
         to the extent that it represents the payment of interest accrued on
         such Loan for the period subsequent to the applicable Prepayment
         Period);

                  (d) Insurance Proceeds and Liquidation Proceeds on such Loans
         received after the

                                        5

<PAGE>

         applicable Prepayment Period;

                  (e) all amounts in the Custodial Account for P & I which are
         due and reimbursable to the Servicer pursuant to the terms of this
         Agreement;

                  (f) the Servicing Fee for each such Loan; and

                  (g) Excess Liquidation Proceeds;

         (2) to the extent advanced by the Servicer and not previously
distributed, the amount of any Advance made by the Servicer to the Trustee with
respect to such Distribution Date relating to such Loans;

         (3) to the extent advanced by the Servicer and not previously
distributed, any amount payable as Compensating Interest by the Servicer on such
Distribution Date relating to such Loans; and

         (4) the total amount, to the extent not previously distributed, of all
cash received by the Distribution Date by the Trustee or the Servicer, in
respect of a Purchase Obligation under Section 2.2 and Section 2.3 or any
permitted repurchase of a Loan.

         BANKRUPTCY COVERAGE: As of the Cut-Off Date, $100,000, and thereafter,
the initial Bankruptcy Coverage amount of $100,000, less (a) any scheduled or
permissible reduction in the amount of Bankruptcy Coverage pursuant to this
definition and (b) Bankruptcy Losses allocated to the Certificates. The
Bankruptcy Coverage may be reduced upon written confirmation from each Rating
Agency that such reduction will not adversely affect the then current ratings
assigned to the Certificates by each Rating Agency.

         BANKRUPTCY LOSS: A loss on a Loan arising out of (i) a reduction in the
scheduled Monthly Payment for such Loan by a court of competent jurisdiction in
a case under the United States Bankruptcy Code, other than any such reduction
that arises out of clause (ii) of this definition of "Bankruptcy Loss,"
including, without limitation, any such reduction that results in a permanent
forgiveness of principal, or (ii) with respect to any Loan, a valuation, by a
court of competent jurisdiction in a case under such Bankruptcy Code, of the
related Mortgaged Property in an amount less than the then outstanding Principal
Balance of such Loan.

         BENEFICIAL HOLDER: A Person holding a beneficial interest in any
Book-Entry Certificate as or through a DTC Participant or an Indirect DTC
Participant or a Person holding a beneficial interest in any Definitive
Certificate.

         BOOK-ENTRY CERTIFICATES: The Class A Certificates, the Class M
Certificates, the Class B-1 Certificates, the Class B-2 Certificates, the Class
B-3 Certificates, the Class B-4 Certificates and the Class B-5 Certificates
beneficial ownership and transfers of which shall be made through book

                                        6

<PAGE>

entries as described in Section 5.7.

         BUSINESS DAY: Any day other than a Saturday, a Sunday, or a day on
which banking institutions in Chicago, Illinois or New York, New York, are
authorized or obligated by law or executive order to be closed.

         CERTIFICATE: Any one of the Certificates issued pursuant to this
Agreement, executed by the Trustee and authenticated by or on behalf of the
Trustee hereunder in substantially one of the forms set forth in Exhibits A and
B hereto. The additional matter appearing in Exhibit K shall be deemed
incorporated into Exhibits A and B as though set forth at the end of Exhibit A
and at the end of Exhibit B, as applicable.

         CERTIFICATE ACCOUNT: The separate trust account created and maintained
with the Trustee or any other bank or trust company acceptable to each Rating
Agency which is incorporated or organized under the laws of the United States or
any state thereof, which account shall bear a designation clearly indicating
that the funds deposited therein are held in trust for the benefit of the
Trustee on behalf of the Certificateholders or any other account serving a
similar function acceptable to each Rating Agency. Funds in the Certificate
Account in respect of the Loans and amounts withdrawn from the Certificate
Account attributable to the Loans shall be accounted for separately. If the
Trustee has appointed a Certificate Administrator pursuant to Section 4.10,
funds on deposit in the Certificate Account may be invested in Eligible
Investments and reinvestment earnings thereon shall be paid to the Certificate
Administrator as additional compensation for the Certificate Administrator's
performance of the duties delegated to it by the Trustee. Funds deposited in the
Certificate Account (exclusive of the Servicing Fee) shall be held in trust for
the Certificateholders and for the uses and purposes set forth in Section 3.2,
Section 3.3 and Section 4.1.

         CERTIFICATE ADMINISTRATOR: As defined in Section 4.10.

         CERTIFICATE ADMINISTRATOR AND TRUSTEE FEE: For each Loan, a fee per
annum equal to 0.0100%, of the outstanding Principal Balance thereof which shall
be paid by the Servicer to the Certificate Administrator and the Trustee.

         CERTIFICATE DISTRIBUTION AMOUNT: (I) For any Distribution Date prior to
the Credit Support Depletion Date, the Available Distribution Amount shall be
distributed to the Certificates in the following amounts and priority:

         (a) with respect to the Senior Certificates (references within this
paragraph (I)(a) to specified Classes shall be deemed to be references to
Classes within paragraph (I)(a) of this definition):

                  (1) first, the Discount Fractional Principal Amount, to the
Class A-P Certificates for such Distribution Date;

                  (2) second, interest to the Senior Certificates (other than
the Class A-P Certificates)

                                        7

<PAGE>

                  previously unpaid and then current Interest Distribution
                  Amount for such Classes of Certificates (other than the Class
                  A-P Certificates), pro rata according to their respective
                  shares of such amounts; provided, however, that the aggregate
                  amount of interest accrued on Class A-7 Certificates shall be
                  payable as principal as follows:

                           (a)      first, to the Class A-4 Certificates, until
                                    its Class Principal Balance has been reduced
                                    to zero;

                           (b)      second, concurrently as follows, until
                                    $50,000,000 has been distributed to the
                                    Class A-2 Certificates and $10,000,000 has
                                    been distributed to the Class A-5
                                    Certificates under clauses (2)(b),
                                    (3)(c)(i)(A)(1)(b), (3)(c)(i)(A)(3),
                                    (3)(d)(i)(A)(1)(b) and (3)(d)(i)(A)(3) of
                                    this definition:

                                            (i)  83.3333333333% to the Class A-2
                                                 Certificates; and

                                            (ii) 16.6666666667% to the Class A-5
                                                 Certificates;

                           (c)      third, concurrently as follows, until
                                    $85,263,000 has been distributed to the
                                    Class A-1 Certificates and $15,000,000 has
                                    been distributed to the Class A-5
                                    Certificates under clauses (2)(c),
                                    (3)(c)(i)(A)(1)(a), (3)(c)(i)(A)(2),
                                    (3)(d)(i)(A)(1)(a) and (3)(d)(i)(A)(2) of
                                    this definition:

                                            (i)  85.0393465187% to the Class A-1
                                                 Certificates; and

                                            (ii) 14.9606534813% to the Class A-5
                                                 Certificates;

                           (d)      fourth, concurrently as follows, until
                                    $50,000,000 has been distributed to the
                                    Class A-3 Certificates and $16,000,000 has
                                    been distributed to the Class A-5
                                    Certificates under clauses (2)(d),
                                    (3)(c)(i)(B), (3)(c)(ii), (3)(d)(i)(B) and
                                    (3)(d)(ii) of this definition:

                                            (i)  75.7575757576% to the Class A-3
                                                 Certificates; and

                                            (ii) 24.2424242424% to the Class A-5
                                                 Certificates; and

                           (e)      fifth, to the Class A-7 Certificates, until
                                    its Class Principal Balance has been reduced
                                    to zero;

         (3) third, the Senior Principal Amount to the Senior Certificates then
         entitled to principal (other than the Class A-P Certificates), in the
         following order of priority:

                                        8

<PAGE>

                  (a)      first, to the Class R Certificate, until its Class
                           Principal Balance has been reduced to zero;

                  (b)      second, to the Class A-9 Certificates and Class A-10
                           Certificates, pro rata, until their Class Principal
                           Balances have been reduced to zero, the lesser of:

                                    (i)   the Lockout Principal Amount; and

                                    (ii)  98.6% of the portion of the Senior
                                          Principal Amount available under this
                                          clause (3)(b);

                  (c)      third, an amount equal to $1,000,000 (but not more
                           than the remaining Senior Principal Amount) to the
                           Class A-1, Class A-2, Class A-3 and Class A-5
                           Certificates, in the following manner and order of
                           priority:

                                    (i) first, concurrently as follows, until
                           the Class Principal Balances of the Class A-1
                           Certificates and Class A-2 Certificates have been
                           reduced to zero:

                                            (A) 84.00% of the amount
                           distributable under clause 3(c) of this definition in
                           the following order of priority:

                                                (1) first, concurrently as
                                                    follows:

                                                    (a) 72.00% concurrently as
                                                        follows, until
                                                        $85,263,000 has been
                                                        distributed to the Class
                                                        A-1 Certificates and
                                                        $15,000,000 has been
                                                        distributed to the Class
                                                        A-5 Certificates under
                                                        clauses (2)(c),
                                                        (3)(c)(i)(A)(1)(a),
                                                        (3)(c)(i)(A)(2),
                                                        (3)(d)(i)(A)(1)(a) and
                                                        (3)(d)(i)(A)(2) of this
                                                        definition:

                                                        (i) 85.0393465187% to
                                                            the Class A-1
                                                            Certificates; and

                                                        (ii) 14.9606534813% to
                                                            the Class A-5
                                                            Certificates; and

                                                    (b) 28.00% concurrently as
                                                        follows, until
                                                        $50,000,000 has been
                                                        distributed to the Class
                                                        A-2 Certificates and
                                                        $10,000,000 has been
                                                        distributed to

                                        9

<PAGE>

                                                        the Class A-5
                                                        Certificates under
                                                        clauses (2)(b),
                                                        (3)(c)(i)(A)(1)(b),
                                                        (3)(c)(i)(A)(3),
                                                        (3)(d)(i)(A)(1)(b) and
                                                        (3)(d)(i)(A)(3) of this
                                                        definition:

                                                        (i) 83.3333333333% to
                                                            the Class A-2
                                                            Certificates; and

                                                        (ii) 16.6666666667% to
                                                            the Class A-5
                                                            Certificates;

                                                     (2) second, concurrently as
                                            follows, until $85,263,000 has been
                                            distributed to the Class A-1
                                            Certificates and $15,000,000 has
                                            been distributed to the Class A-5
                                            Certificates under clauses (2)(c),
                                            (3)(c)(i)(A)(1)(a), (3)(c)(i)(A)(2),
                                            (3)(d)(i)(A)(1)(a) and
                                            (3)(d)(i)(A)(2):

                                                    (a) 85.0393465187% to the
                                                        Class A-1 Certificates;
                                                        and

                                                    (b) 14.9606534813% to the
                                                        Class A-5 Certificates;
                                                        and

                                                     (3) third, concurrently as
                                            follows, until $50,000,000 has been
                                            distributed to the Class A-2
                                            Certificates and $10,000,000 has
                                            been distributed to the Class A-5
                                            Certificates under clauses (2)(b),
                                            (3)(c)(i)(A)(1)(b), (3)(c)(i)(A)(3),
                                            (3)(d)(i)(A)(1)(b) and
                                            (3)(d)(i)(A)(3):

                                                    (a) 83.3333333333% to the
                                                        Class A-2 Certificates;
                                                        and

                                                    (b) 16.6666666667% to the
                                                        Class A-5 Certificates;
                                                        and

                                            (B) 16.00% of the amount
                                    distributable under clause 3(c),
                                    concurrently as follows, until $50,000,000
                                    has been distributed to the Class A-3
                                    Certificates and $16,000,000 has been
                                    distributed to the Class A-5 Certificates
                                    under clauses (2)(d), (3)(c)(i)(B),
                                    (3)(c)(ii), (3)(d)(i)(B) and (3)(d)(ii):

                                                (1) 75.7575757576% to the Class
                                                    A-3 Certificates; and

                                       10

<PAGE>

                                                (2) 24.2424242424% to the Class
                                                    A-5 Certificates; and

                                    (ii) second, concurrently as follows, the
                                    remaining amount distributable under clause
                                    3(c), until $50,000,000 has been distributed
                                    to the Class A-3 Certificates and
                                    $16,000,000 has been distributed to the
                                    Class A-5 Certificates under clauses (2)(d),
                                    (3)(c)(i)(B), (3)(c)(ii), (3)(d)(i)(B) and
                                    (3)(d)(ii):

                                            (A) 75.7575757576% to the Class A-3
                                                Certificates; and

                                            (B) 24.2424242424% to the Class A-5
                                                Certificates;

                  (d)      fourth, to the Class A-1, Class A-2, Class A-3 and
                           Class A-5 Certificates, in the following manner and
                           order of priority:

                                    (i) first, concurrently as follows, until
                                    the Class Principal Balances of the Class
                                    A-1 Certificates and Class A-2 Certificates
                                    have been reduced to zero:

                                            (A) 75.00% of the amount
                                    distributable under clause 3(d) to the Class
                                    A-1, Class A-2, Class A-3 and Class A-5
                                    Certificates, in the following manner and
                                    order of priority:

                                                (1) first, concurrently as
                                                    follows:

                                                    (a) 72.00% concurrently as
                                                        follows, until
                                                        $85,263,000 has been
                                                        distributed to the Class
                                                        A-1 Certificates and
                                                        $15,000,000 has been
                                                        distributed to the Class
                                                        A-5 Certificates under
                                                        clauses (2)(c),
                                                        (3)(c)(i)(A)(1)(a),
                                                        (3)(c)(i)(A)(2),
                                                        (3)(d)(i)(A)(1)(a) and
                                                        (3)(d)(i)(A)(2) of this
                                                        definition:

                                                        (i) 85.0393465187% to
                                                            the Class A-1
                                                            Certificates; and

                                                        (ii) 14.9606534813% to
                                                            the Class A-5
                                                            Certificates; and

                                                    (b) 28.00% concurrently as
                                                        follows, until
                                                        $50,000,000 has been
                                                        distributed to

                                       11

<PAGE>

                                                        the Class A-2
                                                        Certificates and
                                                        $10,000,000 has been
                                                        distributed to the Class
                                                        A-5 Certificates under
                                                        clauses (2)(b),
                                                        (3)(c)(i)(A)(1)(b),
                                                        (3)(c)(i)(A)(3),
                                                        (3)(d)(i)(A)(1)(b) and
                                                        (3)(d)(i)(A)(3) of this
                                                        definition:

                                                        (i) 83.3333333333% to
                                                            the Class A-2
                                                            Certificates; and

                                                        (ii) 16.6666666667% to
                                                            the Class A-5
                                                            Certificates;

                                                     (2) second, concurrently as
                                            follows, until $85,263,000 has been
                                            distributed to the Class A-1
                                            Certificates and $15,000,000 has
                                            been distributed to the Class A-5
                                            Certificates under clauses (2)(c),
                                            (3)(c)(i)(A)(1)(a), (3)(c)(i)(A)(2),
                                            (3)(d)(i)(A)(1)(a) and
                                            (3)(d)(i)(A)(2) of this definition:

                                                    (a) 85.0393465187% to the
                                                        Class A-1 Certificates;
                                                        and

                                                    (b) 14.9606534813% to the
                                                        Class A-5 Certificates;
                                                        and

                                                     (3) third, concurrently as
                                            follows, until $50,000,000 has been
                                            distributed to the Class A-2
                                            Certificates and $10,000,000 has
                                            been distributed to the Class A-5
                                            Certificates under clauses (2)(b),
                                            (3)(c)(i)(A)(1)(b), (3)(c)(i)(A)(3),
                                            (3)(d)(i)(A)(1)(b) and
                                            (3)(d)(i)(A)(3) of this definition:

                                                    (a) 83.3333333333% to the
                                                        Class A-2 Certificates;
                                                        and

                                                    (b) 16.6666666667% to the
                                                        Class A-5 Certificates;
                                                        and

                                            (B) 25.00% of the amount
                                    distributable under clause 3(d) concurrently
                                    as follows, until $50,000,000 has been
                                    distributed to the Class A-3 Certificates
                                    and $16,000,000 has been distributed to the
                                    Class A-5 Certificates under clauses (2)(d),
                                    (3)(c)(i)(B), (3)(c)(ii), (3)(d)(i)(B) and
                                    (3)(d)(ii) of this definition:

                                       12

<PAGE>

                                                     (1) 75.7575757576% to the
                                                     Class A-3 Certificates; and

                                                     (2) 24.2424242424% to the
                                                     Class A-5 Certificates; and

                           (ii) second, concurrently as follows, the remaining
                           amount distributable under clause 3(d), until
                           $50,000,000 has been distributed to the Class A-3
                           Certificates and $16,000,000 has been distributed to
                           the Class A-5 Certificates under clauses (2)(d),
                           (3)(c)(i)(B), (3)(c)(ii), (3)(d)(i)(B) and (3)(d)(ii)
                           of this definition:

                                            (A)  75.7575757576% to the Class A-3
                                                 Certificates; and

                                            (B)  24.2424242424% to the Class A-5
                                                 Certificates;

                  (e)      fifth, to the Class A-4 Certificates, until its Class
                           Principal Balance has been reduced to zero;

                  (f)      sixth, to the Class A-7 Certificates, until its Class
                           Principal Balance has been reduced to zero; and

                  (g)      seventh, to the Class A-9 Certificates and Class A-10
                           Certificates, pro rata, until their Class Principal
                           Balances have been reduced to zero;

                  (4) fourth, pro rata, according to their outstanding
         Certificate Principal Balances, to the Class A-P Certificates, up to
         the Subordinate Principal Amount (determined without regard to the
         proviso of such definition) for such Distribution Date, the Discount
         Fractional Principal Shortfall amount payable to the Class A-P
         Certificates on previous Distribution Dates pursuant to clause
         (I)(a)(5) of this definition of "Certificate Distribution Amount" and
         remaining unpaid from such previous Distribution Dates; and

                  (5) fifth, pro rata, according to their outstanding
         Certificate Principal Balances, to the Class A-P Certificates, up to
         the Subordinate Principal Amount (determined without regard to the
         proviso of such definition) for such Distribution Date (less any
         amounts distributed to the Class A-P Certificates pursuant to paragraph
         (I)(a)(4)), the Discount Fractional Principal Shortfall; provided that
         any amounts distributed in respect of the Discount Fractional Principal
         Shortfall pursuant to paragraph (I)(a)(4) or this paragraph (I)(a)(5)
         of this definition of "Certificate Distribution Amount" shall not cause
         a further reduction of the Class A-P Class Principal Balance; and

         (b) with respect to the Senior Certificates and Subordinate
         Certificates, on any Distribution Date prior to the Credit Support
         Depletion Date, to the extent of the Available Distribution

                                       13

<PAGE>

         Amount remaining:

                  (i) first, to the Class M, B-1, B-2, B-3, B-4 and B-5
                  Certificates, in their order of seniority, the following:

                           (a) their respective amounts of previously unpaid and
         then current Interest Distribution Amounts;

                           (b) their pro rata share, according to their
         respective Class Principal Balances, of the Subordinate Principal
         Amount allocable pursuant to the definition of "Subordinate Principal
         Amount" herein, until their Class Principal Balances have been reduced
         to zero;

                  (ii) second, to the Senior Certificates and Subordinate
                  Certificates in their order of seniority, the amount of
                  unreimbursed Realized Losses previously allocated to such
                  Class of Certificates, if any, provided, that any amounts
                  distributed in respect of losses pursuant to this paragraph
                  (I)(b)(ii) of this definition of "Certificate Distribution
                  Amount" shall not cause a further reduction in the Class
                  Principal Balances of the Senior Certificates or Subordinate
                  Certificates; and

                  (iii) third, to the Class R Certificate, the Residual
                  Distribution Amount;

         (II) for any Distribution Date on or after the Credit Support Depletion
         Date, the Available Distribution Amount remaining, shall be distributed
         to the outstanding Senior Certificates in the following amounts and
         priority:

                           (a) first, to the Class A-P Certificates, the
         Discount Fractional Principal Amount for such Distribution Date;

                           (b) second, to the Senior Certificates (including the
         Accrual Certificates, but excluding the Principal Only Certificates),
         previously unpaid and then current Interest Distribution Amounts, pro
         rata, according to such amount payable to the extent of amounts
         available;

                           (c) third, to the Senior Certificates (other than the
         Interest Only Certificates and the Class A-P Certificates), the Senior
         Principal Amount, pro rata, according to their respective Class
         Principal Balances;

                           (d) fourth, to the Senior Certificates, pro rata,
         according to their respective Class Principal Balances, the amount of
         unreimbursed Realized Losses previously allocated to such Class; and

                           (e) fifth, to the Class R Certificate, the Residual
         Distribution Amount for such

                                       14

<PAGE>

         Distribution Date.

         CERTIFICATE PRINCIPAL BALANCE: For each Certificate of any Class, the
portion of the related Class Principal Balance, if any, represented by such
Certificate.

         CERTIFICATE REGISTER AND CERTIFICATE REGISTRAR: The register maintained
and the registrar appointed, respectively, pursuant to Section 5.3. Initially,
the Certificate Registrar shall be LaSalle Bank National Association.

         CERTIFICATEHOLDER OR HOLDER: The person in whose name a Certificate is
registered in the Certificate Register, except that, solely for the purposes of
giving any consent pursuant to this Agreement, any Certificate registered in the
name of the Depositor, the Certificate Administrator, the Servicer or any
Affiliate thereof shall be deemed not to be outstanding and the Percentage
Interest evidenced thereby shall not be taken into account in determining
whether the requisite percentage of Percentage Interests necessary to effect any
such consent has been obtained; provided, that the Trustee, the Certificate
Registrar and the Paying Agent may conclusively rely upon an Officer's
Certificate to determine whether any Person is an Affiliate of the Depositor,
the Certificate Administrator or the Servicer.

         CERTIFICATEHOLDERS' REPORT: As defined in Section 4.2(a).

         CLASS: All Certificates having the same priority and rights to payments
from the Available Distribution Amount, designated as a separate Class, as set
forth in the forms of Certificates attached hereto as Exhibits A and B.

         CLASS A CERTIFICATES: The Class A-1, A-2, A-3, A-4, A-5, A-6, A-7, A-8,
A-9, A-10, A-P and A-X Certificates, collectively, and designated as such on the
face thereof in substantially the forms attached hereto as Exhibits A-1 through
A-12, respectively.

         CLASS A-5 INTEREST RATE: With respect to the initial Interest Accrual
Period is 2.34% per annum, and as to any Interest Accrual Period thereafter,
will be a per annum rate equal to LIBOR plus 0.50% (subject to a maximum rate of
9.00% per annum and a minimum rate of 0.50% per annum).

         CLASS A-6 INTEREST RATE: With respect to the initial Interest Accrual
Period is 6.66% per annum, and as to any Interest Accrual Period thereafter,
will be a per annum rate equal to 8.50% minus LIBOR (subject to a maximum rate
of 8.50% per annum and a minimum rate of 0.00% per annum).

         CLASS A-6 NOTIONAL AMOUNT: As of the Closing Date approximately
$41,000,000 and thereafter, with respect to any Distribution Date, will be equal
to the Class Principal Balance of the Class A-5 Certificates.

                                       15

<PAGE>

         CLASS A-7 ACCRUAL AMOUNT: For any Distribution Date prior to the Credit
Support Depletion Date, an amount equal to the accrued interest that would
otherwise be distributable in respect of the Class A-7 Certificates on such
Distribution Date and which will be added to the Class A-7 Class Principal
Balance.

         CLASS A-8 NOTIONAL AMOUNT: As of the Closing Date approximately
$3,151,230 and thereafter, with respect to any Distribution Date, to (i) the sum
of:

         (a) 0.06018437% of the Class Principal Balance of the Class A-1
         Certificates; and

         (b) 0.20% of the Class Principal Balance of the Class A-2 Certificates;
         and

         (c) 0.50% of the Class Principal Balance of the Class A-4 Certificates;

         divided by (ii) 6.50%.

         CLASS A-X NOTIONAL AMOUNT: As of the Closing Date approximately
$10,607,035, and thereafter, with respect to any Distribution Date will equal
the total Principal Balance, as of the first day of the month preceding such
Distribution Date (after giving effect to all payments scheduled to be made on
such day whether or not received), of the Premium Loans multiplied by the
following fraction:

              the weighted average of the Pass-Through Rates of the
           Premium Loans as of the first day of such month minus 6.50%

                           __________________________
                                      6.50%

         CLASS NOTIONAL AMOUNT: With respect to the Class A-6, Class A-8 and
Class A-X Certificates, the Class A-6 Notional Amount, Class A-8 Notional Amount
and Class A-X Notional Amount, respectively.

         CLASS PRINCIPAL BALANCE: For any Class of Certificates (other than the
Interest Only Certificates), the applicable initial Class Principal Balance set
forth in the Preliminary Statement hereto, corresponding to the rights of such
Class in payments of principal due to be passed through to Certificateholders
from principal payments on the Loans, as reduced from time to time by (x)
distributions of principal to Certificateholders of such Class and (y) the
portion of Realized Losses allocated to the Class Principal Balance of such
Class pursuant to Section 3.20 with respect to a given Distribution Date. For
any Distribution Date, the reduction of the Class Principal Balance of any Class
of Certificates pursuant to Section 3.20 shall be deemed effective prior to the
determination and distribution of principal on such Class pursuant to the
definition of "Certificate Distribution Amount". Notwithstanding the foregoing,
the Class Principal Balance of the most subordinate Class of Certificates
outstanding at any time shall be equal to the aggregate Scheduled Principal
Balance of all of the Loans less the Class Principal Balance of all other
Classes of

                                       16

<PAGE>

Certificates. The Class Principal Balance for the Class A-1 Certificates shall
be referred to as the "Class A-1 Principal Balance", the Class Principal Balance
for the Class A-2 Certificates shall be referred to as the "Class A-2 Principal
Balance" and so on. The Class Principal Balances of the Interest Only
Certificates shall be zero.

         CLASS R CERTIFICATE: The Certificate designated as "Class R" on the
face thereof in substantially the form attached hereto as Exhibit B, that is
composed of Components R-1 and R-2 each of which has been designated as the sole
class of "residual interests" in REMIC I and REMIC II, respectively, pursuant to
Section 2.4.

         CLASS R CERTIFICATEHOLDER: The registered Holder of the Class R
Certificate.

         CLEARING AGENCY: An organization registered as a "clearing agency"
pursuant to Section 17A of the Securities and Exchange Act of 1934, as amended,
which initially shall be DTC, Clearstream, Luxembourg and Euroclear.

         CLEARSTREAM, LUXEMBOURG: Clearstream Banking, a societe anonyme, a
limited liability company organized under the laws of Luxembourg.

         CLOSING DATE: July 25, 2002.

         CODE: The Internal Revenue Code of 1986, as amended.

         COMPENSATING INTEREST: For any Distribution Date, with respect to the
Loans contained therein, the lesser of (i) the sum of (a) one-twelfth of 0.125%
of the aggregate outstanding Principal Balance of each Loan on such Distribution
Date and (b) the aggregate Payoff Earnings and (ii) the aggregate Uncollected
Interest.

         CORPORATE TRUST OFFICE: The corporate trust office of the Trustee in
the State of Texas, at which at any particular time its corporate trust business
with respect to this Agreement shall be administered, which office at the date
of the execution of this Agreement is located at 600 Travis Street, 9th Floor,
Houston, Texas 77002, Attention: Chris Jackson.

         CREDIT SUPPORT DEPLETION DATE: The first Distribution Date on which the
aggregate of the Class Principal Balances of the Subordinate Certificates has
been or will be reduced to zero as a result of principal distributions thereon
and the allocation of Realized Losses on such Distribution Date.

         CURTAILMENT: Any payment of principal on a Loan, made by or on behalf
of the related Mortgagor, other than a Monthly Payment, a Prepaid Monthly
Payment or a Payoff, which is applied to reduce the outstanding Principal
Balance of the Loan.

         CURTAILMENT SHORTFALL: With respect to any Curtailment applied with a
Monthly Payment, an

                                       17

<PAGE>

amount equal to one month's interest on such Curtailment at the applicable
Pass-Through Rate on such Loan.

         CUSTODIAL ACCOUNT FOR P&I: The custodial account for principal and
interest established and maintained by, or at the direction of, the Servicer and
caused by the Servicer to be established and maintained pursuant to Section
3.2(b) (i) with the corporate trust department of the Trustee or another
financial institution approved by the Servicer such that the rights of such
Servicer, the Trustee and the Certificateholders thereto shall be fully
protected against the claims of any creditors of the Servicer and of any
creditors or depositors of the institution in which such account is maintained,
(ii) within FDIC insured accounts (or other accounts with comparable insurance
coverage acceptable to each Rating Agency) created and maintained, by or at the
direction of the Servicer, and monitored by the Servicer or (iii) in a separate
non-trust account without FDIC or other insurance in an Eligible Institution. In
the event that a Custodial Account for P&I is established pursuant to clause
(ii) of the preceding sentence, amounts held in such Custodial Account for P&I
shall not exceed the level of deposit insurance coverage on such account;
accordingly, more than one Custodial Account for P&I may be established.

         CUSTODIAL AGREEMENT: The agreement, if any, among the Servicer, the
Trustee and a Custodian providing for the safekeeping of the Mortgage Files on
behalf of the Certificateholders.

         CUSTODIAN: A custodian which is appointed pursuant to a Custodial
Agreement. Any Custodian so appointed shall act as agent on behalf of the
Trustee, and shall be compensated by the Trustee at no additional charge to the
Servicer. The Trustee shall remain at all times responsible under the terms of
this Agreement, notwithstanding the fact that certain duties have been assigned
to a Custodian.

         CUT-OFF DATE: July 1, 2002.

         DATA: As defined in Section 8.14.

         DEFAULTED LOAN: As of any Determination Date, any Loan for which any
payment of principal of or interest on such Loan is more than 89 days past due,
determined without giving effect to any grace period permitted by the related
Mortgage or Mortgage Note or any other document in the Mortgage File.

         DEFINITIVE CERTIFICATES: As defined in Section 5.7.

         DENOMINATION: The amount specified on a Certificate as representing the
aggregate Principal Balance of the Loans as of the Cut-Off Date evidenced by
such Certificate.

         DEPOSITOR: ABN AMRO Mortgage Corporation, a Delaware corporation, or
its successor-in-interest.

                                       18

<PAGE>

         DEPOSITORY: DTC or any successor thereto.

         DEPOSITORY AGREEMENT: The Letter of Representations, dated July 25,
2002 by and among DTC, the Depositor and the Trustee.

         DETERMINATION DATE: A day not later than the 10th day (or, if such 10th
day is not a Business Day, the Business Day immediately succeeding such 10th
day) preceding a related Distribution Date in the month in which such
Distribution Date occurs.

         DISCOUNT FRACTION: For any Discount Loan, the following fraction:

               6.50% - the Pass-Through Rate on such Discount Loan

                         ______________________________
                                      6.50%

         DISCOUNT FRACTIONAL PRINCIPAL AMOUNT: On each Distribution Date, an
amount equal to the product of the Discount Fraction multiplied by the sum of
(i) scheduled payments of principal on each Discount Loan due on or before the
related Due Date in respect of which no distribution has been made on any
previous Distribution Date and which were received by the Determination Date, or
which have been advanced as part of an Advance with respect to such Distribution
Date, (ii) the principal portion received in respect of each Discount Loan
during the Prepayment Period of (a) Curtailments, (b) Insurance Proceeds, (c)
the amount, if any, of the principal portion of the Purchase Price pursuant to a
Purchase Obligation or any repurchase of a Discount Loan permitted hereunder and
(d) Liquidation Proceeds and (iii) the principal portion of Payoffs received in
respect of Discount Loans during the applicable Prepayment Period.

         DISCOUNT FRACTIONAL PRINCIPAL SHORTFALL: For any Distribution Date, an
amount equal to the Discount Fraction of any Realized Loss on a Discount Loan,
other than a Special Hazard Loss, Fraud Loss or Bankruptcy Loss in excess of the
Special Hazard Coverage, Fraud Coverage or Bankruptcy Coverage, as applicable.

         DISCOUNT LOAN: The Loans having Pass-Through Rates of less than 6.50%.

         DISQUALIFIED ORGANIZATION: A "disqualified organization" as defined in
Section 860E(e)(5) of the Code, and, for purposes of Section 5.1 herein, as
defined in Section 5.1(b).

         DISTRIBUTION DATE: With respect to distributions on the Certificates,
the 25th day (or, if such 25th day is not a Business Day, the Business Day
immediately succeeding such 25th day) of each month, with the first such date
being August 26, 2002. The "related Due Date" for any Distribution Date is the
Due Date immediately preceding such Distribution Date.

         DTC: The Depository Trust Company.

                                       19

<PAGE>

         DTC PARTICIPANT: A broker, dealer, bank, other financial institution or
other Person for whom DTC effects book-entry transfers and pledges of securities
deposited with DTC.

         DUE DATE: The first day of each calendar month, which is the day on
which the Monthly Payment for each Loan is due.

         ELIGIBLE ACCOUNT: Any account or accounts held and established by the
Servicer or the Trustee in trust for the Certificateholders at any Eligible
Institution.

         ELIGIBLE INSTITUTION: An institution having (i) the highest short-term
debt rating, and one of the two highest long-term debt ratings of each Rating
Agency, (ii) with respect to any Custodial Account for P&I, an unsecured
long-term debt rating of at least one of the two highest unsecured long-term
debt ratings of each Rating Agency, or (iii) the approval of each Rating Agency.

         ELIGIBLE INVESTMENTS: Any one or more of the following obligations or
securities payable on demand or having a scheduled maturity on or before the
Business Day preceding the following Distribution Date (or, with respect to the
Certificate Account maintained with the Trustee or the Certificate
Administrator, having a scheduled maturity on or before the following
Distribution Date; provided that, such Eligible Investments shall be managed by,
or an obligation of, the institution that maintains the Certificate Account if
such Eligible Investments mature on the Distribution Date), regardless of
whether issued by the Depositor, the Servicer, the Trustee or any of their
respective Affiliates and having at the time of purchase, or at such other time
as may be specified, the required ratings, if any, provided for in this
definition:

                  (a) direct obligations of, or guaranteed as to full and timely
payment of principal and interest by, the United States or any agency or
instrumentality thereof, provided, that such obligations are backed by the full
faith and credit of the United States of America;

                  (b) direct obligations of, or guaranteed as to timely payment
of principal and interest by, FHLMC, FNMA or the Federal Farm Credit System,
provided, that any such obligation, at the time of purchase or contractual
commitment providing for the purchase thereof, is qualified by each Rating
Agency as an investment of funds backing securities rated "Aaa" in the case of
Moody's and "AAA" in the case of Fitch (the initial rating of the Class A
Certificates);

                  (c) demand and time deposits in or Certificates of deposit of,
or bankers' acceptances issued by, any bank or trust company, savings and loan
association or savings bank, provided, that the short-term deposit ratings
and/or long-term unsecured debt obligations of such depository institution or
trust company (or in the case of the principal depository institutions in a
holding company system, the commercial paper or long-term unsecured debt
obligations of such holding company) have, in the case of commercial paper, the
highest rating available for such securities by each Rating Agency and, in the
case of long-term unsecured debt obligations, one of the two highest ratings
available for such securities by each Rating Agency, or in each case such lower
rating as will not result in the downgrading or withdrawal of the rating or
ratings then assigned to any Class of

                                       20

<PAGE>

Certificates by any Rating Agency but in no event less than the initial rating
of the Senior Certificates;

                  (d) general obligations of or obligations guaranteed by any
state of the United States or the District of Columbia receiving one of the two
highest long-term debt ratings available for such securities by each Rating
Agency, or such lower rating as will not result in the downgrading or withdrawal
of the rating or ratings then assigned to any Class of Certificates by any
Rating Agency;

                  (e) commercial or finance company paper (including both
non-interest-bearing discount obligations and interest-bearing obligations
payable on demand or on a specified date not more than one year after the date
of issuance thereof) that is rated by each Rating Agency in its highest
short-term unsecured rating category at the time of such investment or
contractual commitment providing for such investment, and is issued by a
corporation the outstanding senior long-term debt obligations of which are then
rated by each Rating Agency in one of its two highest long-term unsecured rating
categories, or such lower rating as will not result in the downgrading or
withdrawal of the rating or ratings then assigned to any Class of Certificates
by any Rating Agency but in no event less than the initial rating of the Senior
Certificates;

                  (f) guaranteed reinvestment agreements issued by any bank,
insurance company or other corporation rated in one of the two highest rating
levels available to such issuers by each Rating Agency at the time of such
investment, provided, that any such agreement must by its terms provide that it
is terminable by the purchaser without penalty in the event any such rating is
at any time lower than such level;

                  (g) repurchase obligations with respect to any security
described in clause (a) or (b) above entered into with a depository institution
or trust company (acting as principal) meeting the rating standards described in
(c) above;

                  (h) securities bearing interest or sold at a discount that are
issued by any corporation incorporated under the laws of the United States of
America or any State thereof and rated by each Rating Agency in one of its two
highest long-term unsecured rating categories at the time of such investment or
contractual commitment providing for such investment; provided, however, that
securities issued by any such corporation will not be Eligible Investments to
the extent that investment therein would cause the outstanding principal amount
of securities issued by such corporation that are then held as part of the
Certificate Account to exceed 20% of the aggregate principal amount of all
Eligible Investments then held in the Certificate Account;

                  (i) units of taxable money market funds (including those for
which the Trustee or any affiliate thereof receives compensation with respect to
such investment) which funds have been rated by each Rating Agency in its
highest rating category or which have been designated in writing by each Rating
Agency as Eligible Investments with respect to this definition;

                  (j) if previously confirmed in writing to the Trustee, any
other demand, money market

                                       21

<PAGE>

or time deposit, or any other obligation, security or investment, as may be
acceptable to each Rating Agency as a permitted investment of funds backing
securities having ratings equivalent to the initial rating of the Class A
Certificates; and

                  (k) such other obligations as are acceptable as Eligible
Investments to each Rating Agency;

provided, however, that such instrument continues to qualify as a "cash flow
investment" pursuant to Code Section 860G(a)(6) and that no instrument or
security shall be an Eligible Investment if (i) such instrument or security
evidences a right to receive only interest payments or (ii) the right to receive
principal and interest payments derived from the underlying investment provides
a yield to maturity in excess of 120% of the yield to maturity at par of such
underlying investment.

         ERISA: The Employee Retirement Income Security Act of 1974, as amended.

         ESCROW ACCOUNT: As defined in Section 3.4.

         ESCROW PAYMENT: Any payment received by the Servicer for the account of
any Mortgagor for application toward the payment of taxes, insurance premiums,
assessments and similar items in respect of the related Mortgaged Property.

                  EUROCLEAR: Euroclear Clearance System, Societe Cooperative, a
Belgium cooperative cooperation.

                  EUROCLEAR OPERATOR: Euroclear Bank S.A./N.V., as operator of
the Euroclear system.

         EVENT OF DEFAULT: Any event of default as specified in Section 7.1.

         EXCESS LIQUIDATION PROCEEDS: With respect to any Distribution Date, the
excess, if any, of aggregate Liquidation Proceeds in the applicable Prepayment
Period over the amount that would have been received if a Payoff had been made
on the last day of such applicable Prepayment Period with respect to each Loan
which became a Liquidated Loan during such applicable Prepayment Period.

         EXCESS LOSS: A Special Hazard Loss incurred on a Loan in excess of the
Special Hazard Coverage, a Fraud Loss incurred on a Loan in excess of the Fraud
Coverage and a Bankruptcy Loss incurred on a Loan in excess of the Bankruptcy
Coverage.

         EXCHANGE ACT: The Securities Exchange Act of 1934, as amended.

         FDIC: Federal Deposit Insurance Corporation, or any successor thereto.

                  FEDERAL FUNDS RATE: means, for any day, the rate set forth in
the weekly statistical release

                                       22

<PAGE>

designated as H.15(519), or any successor publication, published by the Federal
Reserve Bank of New York on the preceding Business Day opposite the caption
"Federal Funds (Effective)"; or, if for any relevant day such rate is not so
published on any such preceding Business Day, the rate for such day will be the
arithmetic mean as determined by the Trustee of the rates for the last
transaction in overnight Federal funds arranged before 9:00 a.m. (New York City
time) on that day by each of three leading brokers of Federal funds transactions
in New York City selected by the Trustee.

         FHA: Federal Housing Administration, or any successor thereto.

         FHLMC: Freddie Mac, or any successor thereto.

         FITCH: Fitch, Inc, provided, that at anytime it is a Rating Agency.

         FNMA: Fannie Mae, or any successor thereto.

         FRAUD COVERAGE: As of the Cut-Off Date approximately $2,885,724, and
thereafter, the Fraud Coverage will generally be equal to (1) prior to the third
Anniversary, an amount equal to 1.00% of the aggregate Principal Balance of all
Loans as of the Cut-Off Date minus the aggregate amounts allocated to the
Certificates with respect to Fraud Losses on such Loans up to such date of
determination and (2) from the third to the fifth Anniversary, an amount equal
to (a) 0.50% of the aggregate Principal Balance of all of the Loans as of the
Due Date of the calendar month preceding the most recent Anniversary minus (b)
the aggregate amounts allocated to the Certificates with respect to Fraud Losses
on the Loans since the most recent Anniversary up to such date of determination.
On and after the fifth Anniversary, the Fraud Coverage will be zero. Fraud
Coverage may be reduced upon written confirmation from each Rating Agency that
such reduction will not adversely affect the then current ratings assigned to
the Certificates by each Rating Agency.

         FRAUD LOSS: The occurrence of a loss on a Loan arising from any action,
event or state of facts with respect to such Loan which, because it involved or
arose out of any dishonest, fraudulent, criminal, negligent or knowingly
wrongful act, error or omission by the Mortgagor, originator (or assignee
thereof) of such Loan, Lender, or the Servicer, would result in an exclusion
from, denial of, or defense to coverage which otherwise would be provided by an
insurance policy previously issued with respect to such Loan.

         GLOBAL CERTIFICATES: Collectively, the Regulation S Global Certificates
and the Rule 144A Global Certificates.

         INDEPENDENT: When used with respect to any specified Person, any such
Person who (i) is in fact independent of the Depositor and the Servicer, (ii)
does not have any direct financial interest or any material indirect financial
interest in the Depositor or the Servicer or any Affiliate of either and (iii)
is not connected with the Depositor or the Servicer as an officer, employee,
promoter, underwriter, trustee, partner, director or person performing similar
functions.

                                       23

<PAGE>

         INDIRECT DTC PARTICIPANTS: Entities such as banks, brokers, dealers or
trust companies that clear through or maintain a custodial relationship with a
DTC Participant, either directly or indirectly.

         INSTALLMENT DUE DATE: The first day of the month in which the related
Distribution Date occurs.

         INSURANCE PROCEEDS: Amounts paid or payable by the insurer under any
insurance policy (including any replacement policy permitted under this
Agreement), covering any Loan or Mortgaged Property, including, without
limitation, any flood insurance policy, primary mortgage insurance policy or
hazard insurance policy required pursuant to Section 3.5, any title insurance
policy required pursuant to Section 2.3, and any FHA insurance policy or VA
guaranty.

         INTEREST ACCRUAL PERIOD: For all Classes of Certificates, the calendar
month preceding the month in which the Distribution Date occurs.

         INTEREST DISTRIBUTION AMOUNT: On any Distribution Date, for any Class
of Certificates (other than the Principal Only Certificates), the amount of
interest accrued on the respective Class Principal Balance or Class Notional
Amount, as applicable, at 1/12th of the related Remittance Rate for such Class
during the applicable Interest Accrual Period, before giving effect to
allocations of Realized Losses in connection with such Distribution Date or
distributions to be made on such Distribution Date, reduced by Uncompensated
Interest Shortfall and the interest portion of Realized Losses allocated to such
Class pursuant to the definition of "Uncompensated Interest Shortfall" and
Section 3.20. The Interest Distribution Amount for the Principal Only
Certificates on any Distribution Date shall equal zero.

         INTEREST ONLY CERTIFICATES: The Class A-6, Class A-8 and Class A-X
Certificates.

         INTERESTED PERSON: The Depositor, the Servicer, any Holder of a
Certificate, or any Affiliate of any such Person.

         JUNIOR SUBORDINATE CERTIFICATES: The Class B-3, B-4 and B-5
Certificates, collectively.

         LATE PAYMENT RATE: The rate of interest publicly announced by Citibank,
N.A. at its principal office in New York as its prime rate (any change in such
prime rate of interest to be effective on the date such change is announced by
Citibank, N.A.) plus 3%. The Late Payment Rate shall be computed on the basis of
a year of 365 days calculating the actual number of days elapsed. In no event
shall the Late Payment Rate exceed the maximum rate permissible under law
applicable to this Agreement limiting interest rates.

         LIBOR: The per annum rate established by the Trustee or the Certificate
Administrator, if any, in accordance with Section 8.16.

                                       24

<PAGE>

         LIBOR BUSINESS DAY: Means any day on which dealings in United States
dollars are transacted in the London interbank market.

         LIBOR DETERMINATION DATE: Means the second LIBOR Business Day before
the first day of the related Interest Accrual Period.

         LIQUIDATED LOAN: A Loan as to which the Servicer has determined in
accordance with its customary servicing practices that all amounts which it
expects to recover from or on account of such Loan, whether from Insurance
Proceeds, Liquidation Proceeds or otherwise, have been recovered. For purposes
of this definition, acquisition of a Mortgaged Property by the Trust Fund shall
not constitute final liquidation of the related Loan.

         LIQUIDATION EXPENSES: Reasonable out of pocket expenses incurred by the
Servicer in connection with the liquidation of any Defaulted Loan or property
acquired in respect thereof, including, without limitation, legal fees and
expenses, any unreimbursed amount expended by the Servicer pursuant to Section
3.7 respecting the related Loan and any unreimbursed expenditures for real
property taxes or for property restoration or preservation relating to the
Mortgaged Property that secured such Loan.

         LIQUIDATION PRINCIPAL: The principal portion of Liquidation Proceeds
received with respect to each Loan which became a Liquidated Loan (but not in
excess of the Principal Balance thereof) during the applicable Prepayment
Period, exclusive of the Discount Fraction of Liquidation Proceeds received with
respect to each Discount Loan, if any.

         LIQUIDATION PROCEEDS: Amounts after deduction of amounts reimbursable
under Section 3.7 received and retained in connection with the liquidation of
Defaulted Loans (including the disposition of REO Property), whether through
foreclosure or otherwise, other than Insurance Proceeds.

         LOANS: The Mortgages and the related Mortgage Notes, each transferred
and assigned to the Trustee pursuant to the provisions hereof as from time to
time are held as part of the Trust Fund, as so identified in the Loan Schedule.
Each of the Loans is referred to individually in this Agreement as a "Loan".

         LOAN SCHEDULE: The schedule, as amended from time to time, of Loans
attached hereto as Exhibit D, which shall set forth as to each Loan the
following, among other things:

                  (i)      the loan number of the Loan and name of the related
                           Mortgagor;

                  (ii)     city, state and zip code of the Mortgaged Property;

                  (iii)    the Mortgage Interest Rate as of the Cut-Off Date;

                                       25

<PAGE>

                  (iv)     the original term and maturity date of the related
                           Mortgage Note;

                  (v)      the original Principal Balance;

                  (vi)     the first payment date;

                  (vii)    the Monthly Payment in effect as of the Cut-Off Date;

                  (viii)   the date of the last paid installment of interest;

                  (ix)     the unpaid Principal Balance as of the close of
                           business on the Cut-Off Date;

                  (x)      the Loan-to-Value ratio at origination;

                  (xi)     the type of property and the Original Value of the
                           Mortgaged Property;

                  (xii)    whether a primary mortgage insurance policy is in
                           effect as of the Cut-Off Date;

                  (xiii)   the nature of occupancy at origination;

                  (xiv)    the servicing fee;

                  (xv)     the county in which Mortgaged Property is located, if
                           available; and

                  (xvi)    the closing date.

         LOAN-TO-VALUE RATIO: The original principal amount of a Loan divided by
the Original Value; however, references to "current Loan-to-Value Ratio" shall
mean the then current Principal Balance of a Loan divided by the Original Value.

         LOCKOUT LIQUIDATION AMOUNT: The aggregate, for each Loan which became a
Liquidated Loan during the calendar month preceding the month of the
Distribution Date, of the lesser of (i) the Lockout Percentage of the Principal
Balance of such Loan (exclusive of the Discount Fraction thereof, if applicable)
and (ii) the Step Down Percentage of the Liquidation Principal with respect to
such Loan.

         LOCKOUT PERCENTAGE: For any Distribution Date (which shall not be
greater than 100%) will equal for any Distribution Date the sum of: (i) the
aggregate Class Principal Balance of the Class A-9 Certificates and Class A-10
Certificates; divided by: (ii) the aggregate Scheduled Principal Balance of all
Loans immediately preceding such Distribution Date (exclusive of the Discount
Fraction of the Discount Loans).

                                       26

<PAGE>

         LOCKOUT PRINCIPAL AMOUNT: For any Distribution Date will equal the sum
of (i) the product of (a) 0% for any Distribution Date prior to the Distribution
Date in August 2007, and thereafter, the Lockout Percentage and (b) the
Principal Payment Amount (exclusive of the portion thereof attributable to the
Discount Fractional Principal Amount); and (ii) the product of: (a) the Lockout
Percentage; (b) the Step Down Percentage; and (c) the sum of the following
amounts with respect to the Loans: (1) the Principal Prepayment Amount
(exclusive of the portion thereof attributable to the Discount Fractional
Principal Amount); and (2) the Senior Liquidation Amount (without application of
the Senior Percentage or the Senior Prepayment Percentage).

         MOODY'S: Moody's Investors Service, Inc. provided, that at any time it
is a Rating Agency.

         MONTHLY PAYMENT: The scheduled payment of principal and interest on a
Loan which is due on the related Due Date for such Loan after giving effect to
any reduction in the amount of interest collectible from any Mortgagor pursuant
to the Relief Act.

         MORTGAGE: The mortgage, deed of trust or other instrument securing a
Mortgage Note.

         MORTGAGE FILE: As defined in Section 2.1.

         MORTGAGE INTEREST RATE: For any Loan, the per annum rate at which
interest accrues on such Loan pursuant to the terms of the related Mortgage Note
without regard to any reduction thereof as a result of the Relief Act.

         MORTGAGE NOTE: The note or other evidence of indebtedness evidencing
the indebtedness of a Mortgagor under a Loan.

         MORTGAGE POOL: All of the Loans.

         MORTGAGED PROPERTY: With respect to any Loan, the real property,
together with improvements thereto, securing the indebtedness of the Mortgagor
under the related Loan.

         MORTGAGOR: The obligor on a Mortgage Note.

         NET INTEREST SHORTFALL: For any Distribution Date, an amount equal to
the sum of (i) Prepayment Interest Shortfall; (ii) any Relief Act Interest
Shortfall; and (iii) the portion of Realized Losses attributable to interest
allocated to such Class.

         NONRECOVERABLE ADVANCE: With respect to any Loan, any Advance which the
Servicer shall have determined to be a Nonrecoverable Advance pursuant to
Section 4.4 and which was, or is proposed to be, made by such Servicer.

         NON-U.S. PERSON: A Person that is not a U.S. Person.

                                       27

<PAGE>

         OFFICER'S CERTIFICATE: With respect to any Person, a certificate signed
by the Chairman of the Board, the President or a Vice-President of such Person
(or, in the case of a Person which is not a corporation, signed by the person or
persons having like responsibilities), and delivered to the Trustee.

         OPINION OF COUNSEL: A written opinion of counsel, who may be outside or
salaried counsel for the Depositor or the Servicer, or any Affiliate of the
Depositor or the Servicer, acceptable to the Trustee; provided, that with
respect to REMIC matters, matters relating to the determination of Eligible
Accounts or matters relating to transfers of Certificates, such counsel shall be
Independent.

         ORIGINAL VALUE: With respect to any Loan other than a Loan originated
for the purpose of refinancing an existing mortgage debt, the lesser of (a) the
Appraised Value (if any) of the Mortgaged Property at the time the Loan was
originated or (b) the purchase price paid for the Mortgaged Property by the
Mortgagor. With respect to a Loan originated for the purpose of refinancing
existing mortgage debt, the Original Value shall be equal to the Appraised Value
of the Mortgaged Property at the time the Loan was originated or the appraised
value at the time the refinanced mortgage debt was incurred.

         OTS: The Office of Thrift Supervision, or any successor thereto.

         OWNER: A Person who owns a beneficial interest in one or more Global
Certificates.

         OWNERSHIP INTEREST: As defined in Section 5.1(b)

         PASS-THROUGH ENTITY: As defined in Section 5.1(b)

         PASS-THROUGH RATE: For each Loan and for any date of determination, a
per annum rate equal to the Mortgage Interest Rate for such Loan less the
applicable per annum percentage rate of the Servicing Fee. For each Loan, any
calculation of monthly interest at such rate shall be based upon annual interest
at such rate (computed on the basis of a 360-day year of twelve 30-day months)
on the unpaid Principal Balance of the related Loan divided by twelve, and any
calculation of interest at such rate by reason of a Payoff shall be based upon
annual interest at such rate on the outstanding Principal Balance of the related
Loan multiplied by a fraction, the numerator of which is the number of days
elapsed from the Due Date of the last scheduled payment of principal and
interest to, but not including, the date of such Payoff, and the denominator of
which is (a) for Payoffs received on a Due Date, 360, and (b) for all other
Payoffs, 365.

         PAYING AGENT: As defined in Section 4.10.

         PAYOFF: Any Mortgagor payment of principal on a Loan equal to the
entire outstanding Principal Balance of such Loan, if received in advance of the
last scheduled Due Date for such Loan and accompanied by an amount of interest
equal to accrued unpaid interest on the Loan to the date of such
payment-in-full.

                                       28

<PAGE>

         PAYOFF EARNINGS: For any Distribution Date with respect to each Loan on
which a Payoff was received by the Servicer during the Prepayment Period, the
aggregate of the interest earned by Servicer from investment of each such Payoff
from the date of receipt of such Payoff until the last day of such Prepayment
Period (net of investment losses).

         PAYOFF INTEREST: For any Distribution Date with respect to a Loan for
which a Payoff was received by the Servicer during the Prepayment Period, an
amount of interest thereon at the applicable Pass-Through Rate from the first
day of such Prepayment Period to the date of receipt thereof.

         PERCENTAGE INTEREST: (a) With respect to the right of each Certificate
of a particular Class in the distributions allocated to such Class, "Percentage
Interest" shall mean the percentage undivided beneficial ownership interest
evidenced by such Certificate of such Class, which percentage shall equal:

                  (i) with respect to any Regular Interest Certificate (other
         than the Interest Only Certificates), its Certificate Principal Balance
         divided by the applicable Class Principal Balance;

                  (ii) with respect to the Interest Only Certificates, the
         portion of the respective Class Notional Amount evidenced by such
         Certificate divided by the respective Class Notional Balance; and

                  (iii) with respect to the Class R Certificate, the percentage
         set forth on the face of such Certificate.

         (b) With respect to the rights of each Certificate in connection with
Sections 5.9, 7.1, 7.3, 8.3 and 10.1, "Percentage Interest" shall mean the
percentage undivided beneficial interest evidenced by such Certificate in the
Trust Fund, which for purposes of such rights only shall equal:

                  (i) with respect to any Certificate (other than the Interest
         Only Certificates), the product of (x) 97.00% and (y) the percentage
         calculated by dividing its Certificate Principal Balance by the
         Aggregate Certificate Principal Balance; provided, however, that the
         product in (x) above shall be increased by one percent (1%) upon each
         retirement of an Interest Only Certificate;

                  (ii) with respect to each Interest Only Certificate, one
         percent (1%) of such Certificate Percentage Interest as calculated by
         paragraph (a)(ii) of this definition; and

                  (iii) with respect to the Class R Certificate, zero.

         PERMITTED TRANSFEREE: With respect to the holding or ownership of any
Residual Certificate, any Person other than (i) the United States, a State or
any political subdivision thereof, or any agency

                                       29

<PAGE>

or instrumentality of any of the foregoing, (ii) a foreign government or
International Organization, or any agency or instrumentality of either of the
foregoing, (iii) an organization (except certain farmers' cooperatives described
in Code Section 521) which is exempt from the taxes imposed by Chapter 1 of the
Code (unless such organization is subject to the tax imposed by Section 511 of
the Code on unrelated business taxable income), (iv) rural electric and
telephone cooperatives described in Code Section 1381(a)(2)(C), (v) any electing
large partnership under Section 775 of the Code, (vi) any Person from whom the
Trustee or the Certificate Registrar has not received an affidavit to the effect
that it is not a "disqualified organization" within the meaning of Section
860E(e)(5) of the Code, and (vii) any other Person so designated by the
Depositor based upon an Opinion of Counsel that the transfer of an Ownership
Interest in a Residual Certificate to such Person may cause the Trust Fund to
fail to qualify as a REMIC at any time that the Certificates are outstanding.
The terms "United States," "State" and "International Organization" shall have
the meanings set forth in Code Section 7701 or successor provisions. A
corporation shall not be treated as an instrumentality of the United States or
of any State or political subdivision thereof if all of its activities are
subject to tax, and, with the exception of the FHLMC, a majority of its board of
directors is not selected by such governmental unit.

         PERSON: Any individual, corporation, limited liability company,
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

         PLAN: As defined in Section 5.1(d).

         PREMIUM LOANS: The Loans having Pass-Through Rates in excess of 6.50%
per annum.

         PREPAID MONTHLY PAYMENT: Any Monthly Payment received prior to its
scheduled Due Date, which is intended to be applied to a Loan on its scheduled
Due Date and held in the related Custodial Account for P&I until the Withdrawal
Date following its scheduled Due Date.

         PREPAYMENT INTEREST SHORTFALL: For any Distribution Date, an amount
equal to the sum of all interest shortfalls resulting from (i) Payoffs during
the related Prepayment Period, to the extent not covered by Compensating
Interest; and (ii) Curtailments during the related Prepayment Period.

         PREPAYMENT PERIOD: The calendar month immediately preceding any
Distribution Date.

         PRINCIPAL BALANCE: At the time of any determination, the principal
balance of a Loan remaining to be paid at the close of business on the Cut-Off
Date, after deduction of all principal payments due on or before the Cut-Off
Date whether or not paid, reduced by all amounts distributed or to be
distributed to Certificateholders through the Distribution Date in the month of
determination that are reported as allocable to principal of such Loan. In the
case of a Substitute Loan, "Principal Balance" shall mean, at the time of any
determination, the principal balance of such Substitute Loan transferred to the
Trust Fund on the date of substitution, reduced by all amounts distributed or to
be distributed to Certificateholders through the Distribution Date in the month
of determination that are

                                       30

<PAGE>

reported as allocable to principal of such Substitute Loan.

         The Principal Balance of a Loan (including a Substitute Loan) shall not
be adjusted solely by reason of any bankruptcy or similar proceeding or any
moratorium or similar waiver or grace period. Whenever a Realized Loss has been
incurred with respect to a Loan during a calendar month, the Principal Balance
of such Loan shall be reduced by the amount of such Realized Loss as of the
Distribution Date next following the end of such calendar month after giving
effect to the allocation of Realized Losses and distributions of principal to
the Certificates.

         PRINCIPAL ONLY CERTIFICATES: The Class A-P Certificates.

         PRINCIPAL PAYMENT: Any payment of principal on a Loan other than a
Principal Prepayment.

         PRINCIPAL PAYMENT AMOUNT: On any Distribution Date and for the Loans,
the sum with respect to the Loans of (i) the scheduled principal payments on the
Loans due on the related Due Date, (ii) the principal portion of repurchase
proceeds received with respect to any Loan which was repurchased by the
Depositor pursuant to a Purchase Obligation or as permitted by this Agreement
prior to such Distribution Date, and (iii) any other unscheduled payments of
principal which were received with respect to any Loan during the applicable
Prepayment Period, other than Payoffs, Curtailments and Liquidation Principal.

         PRINCIPAL PREPAYMENT: Any payment of principal on a Loan which
constitutes a Payoff or a Curtailment.

         PRINCIPAL PREPAYMENT AMOUNT: On any Distribution Date and for the
Loans, the sum with respect to the Loans of (i) Curtailments received during the
applicable Prepayment Period from such Loans and (ii) Payoffs received during
the applicable Prepayment Period from the Loans.

         PRO RATA ALLOCATION: The allocation of the principal portion of certain
losses relating to a Loan to the Senior Certificates (other than the Class A-P
Certificates and the Interest Only Certificates) and/or to the Subordinate
Certificates, as applicable, pro rata according to their respective Certificate
Principal Balances or, in the case of the Accrual Certificates, the Certificate
Principal Balance of the Accrual Certificate on the Closing Date, if lower
(except (1) if the loss is recognized with respect to a Discount Loan, in which
event the Discount Fraction of such loss will be allocated to the Class A-P
Certificates pro rata according to the outstanding Certificate Principal
Balances of the Class A-P Certificate, and the remainder of such loss will be
allocated as described above in this definition without regard to this
parenthetical and (2) all losses allocable to the Class A-7 Certificates will be
allocated to the Class A-10 Certificates until the Class Principal Balance of
the Class A-10 Certificates has been reduced to zero) in reduction thereof, and
the allocation of the interest portion of such losses to such Certificates
(other than the Class A-P Certificates), pro rata according to the amount of
interest accrued but unpaid on each such Class in reduction thereof and then pro
rata according to their outstanding Certificate Principal Balances or, in the
case of the Accrual Certificates, the Certificate Principal Balance of that
Accrual Certificate on the Closing

                                       31

<PAGE>

Date, if lower, in reduction thereof.

         PURCHASE OBLIGATION: An obligation of the Depositor to repurchase Loans
under the circumstances and in the manner provided in Section 2.2 or Section
2.3.

         PURCHASE PRICE: With respect to any Loan to be purchased pursuant to a
Purchase Obligation, or any Loan to be purchased or repurchased relating to an
REO Property, an amount equal to the sum of the Principal Balance thereof, plus
accrued and unpaid interest thereon, if any, to the last day of the calendar
month in which the date of repurchase occurs at a rate equal to the applicable
Mortgage Interest Rate; provided, however, that no Loan shall be purchased or
required to be purchased pursuant to Section 2.3, or more than two years after
the Closing Date under Section 2.2, unless (a) the Loan to be purchased is in
default, or default is in the judgment of the Depositor reasonably imminent, or
(b) the Depositor, at its expense, delivers to the Trustee an Opinion of Counsel
to the effect that the purchase of such Loan will not give rise to a tax on a
prohibited transaction, as defined in Section 860F(a) of the Code; provided,
further, that in the case of clause (b) above, the Depositor will use its
reasonable efforts to obtain such Opinion of Counsel if such opinion is
obtainable.

         RATING AGENCY: Initially, each of Moody's and Fitch; thereafter, each
nationally recognized statistical rating organization that has rated the
Certificates at the request of the Depositor, or their respective successors in
interest.

         RATINGS: As of any date of determination, the ratings, if any, of the
Certificates as assigned by each Rating Agency.

         REALIZED LOSS: For any Distribution Date, with respect to any Loan
which became a Liquidated Loan during the related applicable Prepayment Period,
the sum of (i) the principal balance of such Loan remaining outstanding and the
principal portion of Nonrecoverable Advances actually reimbursed with respect to
such Loan (the principal portion of such Realized Loss), and (ii) the accrued
interest on such Loan remaining unpaid and the interest portion of
Nonrecoverable Advances actually reimbursed with respect to such Loan (the
interest portion of such Realized Loss). For any Distribution Date, with respect
to any Loan which is not a Liquidated Loan, the amount of the Bankruptcy Loss
incurred with respect to such Loan as of the related Due Date will be treated as
a Realized Loss.

         RECORD DATE: With respect to each Distribution Date and each Class of
Certificates (other than the Adjustable Rate Certificates), the close of
business on the last Business Day of the month immediately preceding the month
of the related Distribution Date. With respect to each Distribution Date and the
Adjustable Rate Certificates, the Business Day immediately preceding such
Distribution Date.

         REGULAR INTEREST CERTIFICATES: The Certificates, other than the Class R
Certificate.

         REGULATION S: Regulation S under the Securities Act.

                                       32

<PAGE>

         REGULATION S GLOBAL CERTIFICATES: The Regulation S Temporary Global
Certificates and the Regulation S Permanent Global Certificates.

         REGULATION S PERMANENT GLOBAL CERTIFICATES: As defined in Section
5.1(e) hereof.

         REGULATION S TEMPORARY GLOBAL CERTIFICATES: As defined in Section
5.1(e) hereof.

         RELIEF ACT: The Soldiers' and Sailors' Civil Relief Act of 1940, as
amended.

         RELIEF ACT INTEREST SHORTFALL: With respect to any Distribution Date
and Loan, any reduction in the amount of interest collectible on such Loan for
the most recently ended calendar month immediately preceding such Distribution
Date as a result of the application of the Relief Act.

         REMIC: A real estate mortgage investment conduit, as such term is
defined in the Code.

         REMIC I: The pool of assets (other than any Escrow Account or Accounts)
consisting of the Trust Fund.

         REMIC I REGULAR INTERESTS: The regular interests in REMIC I as
described in Section 2.4 of this Agreement.

         REMIC II: The pool of assets consisting of the REMIC I Regular
Interests and all payments of principal or interest on or with respect to the
REMIC I Regular Interests after the Cut-Off Date.

         REMIC PROVISIONS: Sections 860A through 860G of the Code, related Code
provisions and regulations promulgated thereunder, as the foregoing may be in
effect from time to time.

         REMITTANCE RATE: For each Class of interest bearing Certificates (other
than the Class A-5 Certificates and Class A-6 Certificates), the per annum rate
set forth as the Remittance Rate for such Class in the Preliminary Statement
hereto. The "Remittance Rate" for the Class A-5 Certificates shall be the Class
A-5 Interest Rate. The "Remittance Rate" for the Class A-6 Certificates shall be
the Class A-6 Interest Rate.

         REO PROPERTY: A Mortgaged Property, title to which has been acquired by
the Servicer on behalf of the Trust Fund through foreclosure, deed in lieu of
foreclosure or otherwise.

         RESIDUAL CERTIFICATE: The Class R Certificate, which is being issued in
a single class. Components R-1 and R-2 of the Class R Certificate is hereby each
designated the sole Class of "residual interests" in REMIC I and REMIC II,
respectively, for purposes of Section 860G(a)(2) of the Code.

         RESIDUAL DISTRIBUTION AMOUNT: On any Distribution Date, any portion of
the Available Distribution Amount remaining after all distributions to the
Certificates pursuant to the definition

                                       33

<PAGE>

of Certificate Distribution Amount. Upon termination of the obligations created
by this Agreement and the Trust Fund created hereby, the amounts which remain on
deposit in the Certificate Account after payment to the Certificateholders of
the amounts set forth in Section 9.1 of this Agreement, and subject to the
conditions set forth therein.

         RESPONSIBLE OFFICER: When used with respect to the Trustee or any
Seller, the Chairman or Vice-Chairman of the Board of Directors or Trustees, the
Chairman or Vice-Chairman of the Executive or Standing Committee of the Board of
Directors or Trustees, the President, the Chairman of the Committee on Trust
Matters, any Vice-President, any Assistant Vice-President, the Secretary, any
Assistant Secretary, the Treasurer, any Assistant Treasurer, the Cashier, any
Assistant Cashier, any Trust Officer or Assistant Trust Officer, the Controller,
any Assistant Controller or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above-designated
officers and in each case having direct responsibility for the administration of
this Agreement, and also, with respect to a particular matter, any other officer
to whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject. When used with respect to the Servicer,
the Chairman or Vice-Chairman of the Board of Directors or Trustees, the
Chairman or Vice-Chairman of the Executive or Standing Committee of the Board of
Directors or Trustees, the President, any Vice-President, the Secretary, any
Assistant Secretary, the Treasurer, any Assistant Treasurer, the Controller and
any Assistant Controller or any other officer of the Servicer customarily
performing functions similar to those performed by any of the above-designated
officers and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject. When used with respect to the Depositor
or any other Person, the Chairman or Vice-Chairman of the Board of Directors,
the Chairman or Vice-Chairman of any executive committee of the Board of
Directors, the President, any Vice-President, the Secretary, any Assistant
Secretary, the Treasurer, any Assistant Treasurer, or any other officer of the
Depositor customarily performing functions similar to those performed by any of
the above-designated officers and also, with respect to a particular matter, any
other officer to whom such matter is referred because of such officer's
knowledge of and familiarity with the particular subject.

         RULE 144: Rule 144 under the Securities Act.

         RULE 144A: Rule 144A, promulgated under the Securities Act, as amended.

         RULE 144A GLOBAL CERTIFICATES: As defined in Section 5.1(e) hereof.

         S&P: Standard & Poor's Ratings Services, a division of The McGraw Hill
Companies, Inc. provided, that at any time it is a Rating Agency.

         SCHEDULED PRINCIPAL BALANCE: With respect to any Loan as of any
Distribution Date, the unpaid principal balance of such Loan as specified in the
amortization schedule at the time relating thereto (before any adjustment to
such schedule by reason of bankruptcy or similar proceeding or any moratorium or
similar waiver or grace period) as of the first day of the month preceding the

                                       34

<PAGE>

month of such Distribution Date, after giving effect to any previously applied
Curtailments, the payment of principal due on such first day of the month and
any reduction of the principal balance of such Loan by a bankruptcy court,
irrespective of any delinquency in payment by the related Mortgagor.

         SECURITIES ACT: The Securities Act of 1933, as amended.

         SELLER: ABN AMRO Mortgage Group, Inc.

         SENIOR CERTIFICATES: The Class A and Class R Certificate, collectively.

         SENIOR LIQUIDATION AMOUNT: The aggregate, for each Loan which became a
Liquidated Loan during the applicable Prepayment Period, of the lesser of: (i)
the Senior Percentage of the Principal Balance of such Loan (exclusive of the
Discount Fraction thereof, if applicable), and (ii) the Senior Prepayment
Percentage of the Liquidation Principal with respect to such Loan.

         SENIOR PERCENTAGE: As of the Closing Date, approximately 96.99%, and
thereafter, with respect to any Distribution Date, the sum of the Class
Principal Balances of the Senior Certificates (other than the Class A-P
Certificates) divided by aggregate Scheduled Principal Balance of all Loans
(reduced by the Discount Fraction of the Discount Loans), in each case
immediately prior to such Distribution Date.

         SENIOR PREPAYMENT PERCENTAGE: (i) On any Distribution Date occurring
before the Distribution Date in the month of August 2007, 100%; (ii) on any
other Distribution Date on which the Senior Percentage for such Distribution
Date exceeds the initial Senior Percentage as of the Cut-Off Date, 100%; and
(iii) on any other Distribution Date in each of the months of August 2007 and
thereafter, 100%, unless:

                  (a) the mean aggregate Principal Balance of the Loans which
         are 60 or more days delinquent (including loans in foreclosure and
         property held by the Trust Fund) for each of the immediately preceding
         six calendar months is less than or equal to 50% of the Subordinate
         Amount as of such Distribution Date, and

                  (b) cumulative Realized Losses on the Loans allocated to the
         Subordinate Certificates are less than or equal to the following
         amounts:

<TABLE>
<CAPTION>
                                                               PERCENTAGE OF THE SUBORDINATE
            DISTRIBUTION DATE OCCURRING IN                     AMOUNT AS OF THE CUT-OFF DATE
            ------------------------------                     -----------------------------
<S>                                                            <C>
August 2007 through July 2008.........................                      30%
August 2008 through July 2009.........................                      35%
August 2009 through July 2010.........................                      40%
August 2010 through July 2011.........................                      45%
August 2011 and thereafter............................                      50%
</TABLE>

                                       35
<PAGE>

                  in which case, the Senior Prepayment Percentage shall be as
follows:

<TABLE>
<CAPTION>
        DISTRIBUTION DATE OCCURRING IN                         SENIOR PREPAYMENT PERCENTAGE
        ------------------------------                         ----------------------------
<S>                                             <C>
August 2002 through July 2007.................. 100%
August 2007 through July 2008.................. SENIOR PERCENTAGE + 70% of SUBORDINATE
                                                PERCENTAGE
August 2008 through July 2009.................. SENIOR PERCENTAGE + 60% of SUBORDINATE
                                                PERCENTAGE
August 2009 through July 2010.................. SENIOR PERCENTAGE + 40% of SUBORDINATE
                                                PERCENTAGE
August 2010 through July 2011.................. SENIOR PERCENTAGE + 20% of SUBORDINATE
                                                PERCENTAGE
August 2011 and thereafter..................... SENIOR PERCENTAGE
</TABLE>

         If on any Distribution Date the allocation to the Certificates (other
than the Class A-P Certificates) of Principal Prepayments in the percentage
required would reduce the sum of the Class Principal Balances of the
Certificates (other than the Class A-P Certificates) below zero, the Senior
Prepayment Percentage for such Distribution Date shall be limited to the
percentage necessary to reduce such sum to zero. Notwithstanding the foregoing,
however, on each Distribution Date, the Class A-P Certificates will receive the
Discount Fraction of all principal payments, including, without limitation,
Principal Prepayments, received in respect of each Discount Loan.

         SENIOR PRINCIPAL AMOUNT: For any Distribution Date, an amount equal to
the sum of (a) the Senior Percentage of the Principal Payment Amount for the
Loans (exclusive of the Discount Fractional Principal Amount), (b) the Senior
Prepayment Percentage of the Principal Prepayment Amount for the Loans
(exclusive of the Discount Fractional Principal Amount) and (c) the Senior
Liquidation Amount.

         SENIOR SUBORDINATE CERTIFICATES: The Class M, B-1 and B-2 Certificates,
collectively.

         SERVICER: ABN AMRO Mortgage Group, Inc., a Delaware corporation, or any
successor thereto appointed as provided pursuant to Section 7.5, acting to
service and administer such Loans pursuant to Section 3.1.

         SERVICER'S SECTION 3.10 REPORT: A report delivered by the Servicer to
the Trustee or the Certificate Administrator pursuant to Section 3.10.

         SERVICING FEE: For each Loan, the fee paid to the Servicer to perform
primary servicing functions with respect to such Loan, equal to the per annum
rate of 0.2500% for each Loan in the Loan Schedule on the outstanding Principal
Balance of such Loan.

         SERVICING OFFICER: Any individual involved in, or responsible for, the
administration and servicing of the Loans whose name and specimen signature
appear on a list of servicing officers

                                       36
<PAGE>

furnished to the Trustee on the Closing Date by the Servicer in the form of an
Officer's Certificate, as such list may from time to time be amended.

         SPECIAL HAZARD COVERAGE: As of the Cut-Off Date approximately
$3,073,347, and thereafter on each anniversary of the Cut-Off Date, the Special
Hazard Coverage shall be reduced, but not increased, to an amount equal to the
lesser of (1) the greatest of (a) the aggregate Principal Balance of the Loans
located in the single California zip code area containing the largest aggregate
Principal Balance of the Loans, (b) 1% of the aggregate unpaid Principal Balance
of the Loans and (c) twice the unpaid Principal Balance of the largest single
Loan, in each case calculated as of the Due Date in the immediately preceding
month, and (2) the initial Special Hazard Coverage amount of $3,073,374 as
reduced by the Special Hazard Losses allocated to the Certificates since the
Cut-Off Date. Special Hazard Coverage may be reduced upon written confirmation
from each Rating Agency that such reduction will not adversely affect the then
current ratings assigned to the Certificates by each Rating Agency.

         SPECIAL HAZARD LOSS: The occurrence of any direct physical loss or
damage to a Mortgaged Property not covered by a standard hazard maintenance
policy with extended coverage which is caused by or results from any cause
except: (i) fire, lightning, windstorm, hail, explosion, riot, riot attending a
strike, civil commotion, vandalism, aircraft, vehicles, smoke, sprinkler
leakage, except to the extent of that portion of the loss which was uninsured
because of the application of a co-insurance clause of any insurance policy
covering these perils; (ii) normal wear and tear, gradual deterioration,
inherent vice or inadequate maintenance of all or part thereof; (iii) errors in
design, faulty workmanship or materials, unless the collapse of the property or
a part thereof ensues and then only for the ensuing loss; (iv) nuclear reaction
or nuclear radiation or radioactive contamination, all whether controlled or
uncontrolled and whether such loss be direct or indirect, proximate or remote or
be in whole or in part caused by, contributed to or aggravated by a peril
covered by this definition of Special Hazard Loss; (v) hostile or warlike action
in time of peace or war, including action in hindering, combating or defending
against an actual, impending or expected attack (a) by any government or
sovereign power (dejure or defacto), or by an authority maintaining or using
military, naval or air forces, (b) by military, naval or air forces, or (c) by
an agent of any such government, power, authority or forces; (vi) any weapon of
war employing atomic fission or radioactive force whether in time of peace or
war; (vii) insurrection, rebellion, revolution, civil war, usurped power or
action taken by governmental authority in hindering, combating or defending
against such occurrence; or (viii) seizure or destruction under quarantine or
customs regulations, or confiscation by order of any government or public
authority.

         STEP DOWN PERCENTAGE: For any Distribution Date will be the percentage
indicated below:

<TABLE>
<CAPTION>
            DISTRIBUTION DATE OCCURRING IN                         STEP DOWN PERCENTAGE
            ------------------------------                         --------------------
<S>                                                                         <C>
August 2002 through July 2007.........................                      0%
August 2007 through July 2008.........................                      30%
August 2008 through July 2009.........................                      40%
August 2009 through July 2010.........................                      60%

                                       37
<PAGE>

August 2010 through July 2011.........................                      80%
August 2011 and thereafter............................                     100%
</TABLE>

         SUBORDINATE AMOUNT: The excess of the aggregate Scheduled Principal
Balance of the Loans over the Senior Certificate Principal Balance.

         SUBORDINATE CERTIFICATES: The Class M, Class B-1, Class B-2, Class B-3,
Class B-4 and Class B-5 Certificates, collectively, and designated as such on
the face thereof in substantially the form attached hereto as Exhibits A-12
through A-18, respectively and for purposes of this Agreement, the "order of
seniority" from highest to lowest of such certificates shall be the order
designated in the beginning of this definition.

         SUBORDINATE LIQUIDATION AMOUNT: The excess, if any, of the aggregate of
Liquidation Principal for all the Loans which became Liquidated Loans during the
applicable Prepayment Period, over the related Senior Liquidation Amount for
such Distribution Date.

         SUBORDINATE PERCENTAGE: As of the Closing Date approximately 3.01%, and
thereafter, with respect to any Distribution Date, the excess of 100% over the
Senior Percentage for such date.

         SUBORDINATE PREPAYMENT PERCENTAGE: As of the Closing Date,
approximately 0%, and thereafter, with respect to any Distribution Date, the
excess of 100% over the Senior Prepayment Percentage.

         SUBORDINATE PRINCIPAL AMOUNT: On any Distribution Date, will be equal
to the sum of:

                  (1) the Subordinate Percentage of the Principal Payment Amount
(exclusive of the portion thereof attributable to the Discount Fractional
Principal Amount);

                  (2) the Subordinate Principal Prepayment Amount; and

                  (3) the Subordinate Liquidation Amount;

provided, however, that the Subordinate Principal Amount shall be reduced by the
amounts required to be distributed to the Principal Only Certificates with
respect to the Discount Fractional Principal Shortfall on such Distribution
Date.

         Any reduction in the Subordinate Principal Amount pursuant to the
proviso above shall offset the amount calculated pursuant to clause (1), clause
(3) and clause (2), in such order of priority. On any Distribution Date, the
Subordinate Principal Amount shall be allocated pro rata, by Class Principal
Balance, among the Classes of Subordinate Certificates and paid in the order of
distribution to such Classes pursuant to clause (I)(b) of the definition of
"Certificate Distribution Amount" herein, except as otherwise stated in such
definition. Notwithstanding the foregoing, on any Distribution Date prior to
distributions on such date, if the Subordination Level for any Class of

                                       38
<PAGE>

Subordinate Certificates is less than such percentage as of the Closing Date,
the pro rata portion of the Subordinate Principal Prepayment Amount otherwise
allocable to the Class or Classes junior to such Class will be distributed to
the most senior Class of the Subordinate Certificates for which the
Subordination Level is less than such percentage as of the Closing Date, and to
the Classes of Subordinate Certificates senior thereto, pro rata according to
the Class Principal Balances of such Classes.

         SUBORDINATE PRINCIPAL PREPAYMENT AMOUNT: On any Distribution Date, the
Subordinate Prepayment Percentage of the Principal Prepayment Amount for the
Loans (exclusive of the portion thereof attributable to the Discount Fractional
Principal Amount).

         SUBORDINATION LEVEL: On any specified date, with respect to any Class
of Subordinate Certificates, the percentage obtained by dividing: (1) the sum of
the Class Principal Balances of all Classes of Certificates which are
subordinate in right of payment to such Class as of such date before giving
effect to distributions or allocations of Realized Losses on the Loans on such
date; by (2) the sum of the Class Principal Balances of all Classes of
Certificates as of such date before giving effect to distributions or
allocations of Realized Losses on the Loans on such date.

         SUBSTITUTE LOAN: As defined in Section 2.2.

         TAX MATTERS PERSON: The Holder of the Class R Certificate issued
hereunder or any Permitted Transferee of such Class R Certificateholder shall be
the initial "tax matters person" for REMIC I and REMIC II within the meaning of
Section 6231(a)(7) of the Code. For tax years commencing after any transfer of
the Class R Certificate, the holder of the greatest Percentage Interest in the
Class R Certificate at year end shall be designated as the Tax Matters Person
with respect to that year. If the Tax Matters Person becomes a Disqualified
Organization, the last preceding Holder of such Authorized Denomination of the
Class R Certificate that is not a Disqualified Organization shall be Tax Matters
Person pursuant to Section 5.1(c). If any Person is appointed as tax matters
person by the Internal Revenue Service pursuant to the Code, such Person shall
be Tax Matters Person.

         TRANSFER: As defined in Section 5.1(b).

         TRANSFEREE: As defined in Section 5.1(b).

         TRANSFEREE AFFIDAVIT AND AGREEMENT: As defined in Section 5.1(c)(i)(B).

         TRUST FUND: The corpus of the trust created pursuant to Section 2.1 of
this Agreement. The Trust Fund consists of (i) the Loans and all rights
pertaining thereto; (ii) such assets as from time to time may be held by the
Trustee (except amounts representing the Servicing Fee and amounts on deposit in
Escrow Accounts); (iii) such assets as from time to time may be held by the
Servicer in a Custodial Account for P&I related to the Loans (except amounts
representing the Servicing Fee); (iv) property which secured a Loan and which
has been acquired by foreclosure or deed in lieu of foreclosure after the
Cut-Off Date; (v) amounts paid or payable by the insurer under any FHA

                                       39
<PAGE>

insurance policy and proceeds of any VA guaranty and any other insurance policy
related to any Loan or the Mortgage Pool and (vi) the rights and remedies of the
Depositor contained in Section 8 of the Mortgage Loan Purchase Agreement dated
as of the Closing Date, between the Seller and the Depositor.

         TRUSTEE: JPMorgan Chase Bank, a New York state banking corporation, or
its successor-in-interest as provided in Section 8.9, or any successor trustee
appointed as herein provided.

         UNCOLLECTED INTEREST: With respect to any Distribution Date for any
Loan on which a Payoff was made by a Mortgagor during the related Prepayment
Period, an amount equal to one month's interest at the applicable Pass-Through
Rate on such Loan less the amount of interest actually paid by the Mortgagor
with respect to such Payoff.

         UNCOMPENSATED INTEREST SHORTFALL: For any Distribution Date, the
excess, if any, of (i) the sum of (a) aggregate Uncollected Interest, (b)
aggregate Curtailment Shortfall and (c) any shortfall in interest collections in
the calendar month immediately preceding such Distribution Date resulting from a
Relief Act Interest Shortfall over (ii) Compensating Interest, which excess
shall be allocated to each Class of Certificates pro rata according to the
amount of interest accrued thereon in reduction thereof.

         UNDERWRITERS: Lehman Brothers Inc. and ABN AMRO Financial Services,
Inc.

         U.S. PERSON: A citizen or resident of the United States, a corporation
or partnership (including an entity treated as a corporation or partnership for
federal income tax purposes) created or organized in, or under the laws of, the
United States or any state thereof or the District of Columbia (except, in the
case of a partnership, to the extent provided in regulations) or an estate whose
income is subject to United States federal income tax regardless of its source,
or a trust if a court within the United States is able to exercise primary
supervision over the administration of the trust and one or more such U.S.
Persons have the authority to control all substantial decisions of the trust. To
the extent prescribed in regulations by the Secretary of the Treasury, which
have not yet been issued, a trust which was in existence on August 20, 1996
(other than a trust treated as owned by the grantor under subpart E of part 1 of
subchapter J of chapter 1 of the Code), and which was treated as a U.S. Person
on August 20, 1996 may elect to continue to be treated as a U.S. Person
notwithstanding the previous sentence.

         VA: The Department of Veterans Affairs, formerly known as the Veterans
Administration, or any successor thereto.

         WITHDRAWAL DATE: The Business Day immediately preceding the related
Distribution Date.

         All references to the origination date or original date in the Loan
Schedule with respect to a Loan shall refer to the date upon which the related
Mortgage Note was originated or modified,

                                       40
<PAGE>

whichever is later.

                                   ARTICLE II

                            CONVEYANCE OF TRUST FUND;
                        ORIGINAL ISSUANCE OF CERTIFICATES

         Section 2.1 CONVEYANCE OF TRUST FUND. The Depositor, concurrently with
the execution and delivery hereof, does hereby irrevocably sell, convey and
assign to the Trustee and REMIC I without recourse all the right, title and
interest of the Depositor in and to the Trust Fund and to REMIC II without
recourse all the right, title and interest of the Depositor in and to the REMIC
I Regular Interests, for the benefit respectively of REMIC II and the
Certificateholders, including all interest and principal received by the
Depositor with respect to the Loans after the Cut-Off Date (and including
without limitation scheduled payments of principal and interest due after the
Cut-Off Date but received by the Depositor on or before the Cut-Off Date, but
not including payments of principal and interest due on the Loans on or before
the Cut-Off Date). The Depositor, at its own expense, shall file or cause to be
filed protective Form UCC-1 financing statements with respect to the Loans in
the State of Illinois or other applicable jurisdiction, listing itself as
"Debtor" under such financing statement and listing the Trustee, for the benefit
of the Certificateholders, as "Secured Party" under such financing statement.

         In connection with such assignment, the Depositor does hereby deliver
to, and deposit with, the Trustee for the benefit of the Certificateholders the
following documents or instruments with respect to each Loan so assigned:

                  (i) The original Mortgage Note (or, if the original Mortgage
         Note has been lost or destroyed, a lost note affidavit and indemnity)
         bearing all intervening endorsements endorsed, "Pay to the order of
         JPMorgan Chase Bank, as Trustee, for the benefit of the
         Certificateholders of ABN AMRO Mortgage Corporation Series 2002-6 Attn:
         Institutional Services, 600 Travis Street, 10th Floor, Houston, Texas
         77002, without recourse" and signed in the name of the Seller by an
         Authorized Officer showing an unbroken chain of title from the
         originator thereof to the person endorsing;

                  (ii) (a) The original Mortgage with evidence of recording
         thereon, and if the Mortgage was executed pursuant to a power of
         attorney, a certified true copy of the power of attorney certified by
         the recorder's office, with evidence of recording thereon, or certified
         by a title insurance company or escrow company to be a true copy
         thereof; provided, that if such original Mortgage or power of attorney
         cannot be delivered with evidence of recording thereon on or prior to
         the Closing Date because of a delay caused by the public recording
         office where such original Mortgage has been delivered for recordation
         or because such original Mortgage has been lost, the Depositor shall
         deliver or cause to be delivered to the Trustee a true and correct copy
         of such Mortgage, together with (1) in the case of a delay

                                       41
<PAGE>

         caused by the public recording office, an Officer's Certificate signed
         by a Responsible Officer of the Seller stating that such original
         Mortgage has been dispatched to the appropriate public recording
         official for recordation or (2) in the case of an original Mortgage
         that has been lost, a certificate by the appropriate county recording
         office where such Mortgage is recorded or from a title insurance
         company or escrow company indicating that such original was lost and
         the copy of the original mortgage is a true and correct copy;

                  (b) The original Assignment to "JPMorgan Chase Bank, as
         Trustee," which assignment shall be in form and substance acceptable
         for recording, or a copy certified by the Seller as a true and correct
         copy of the original Assignment which has been sent for recordation.
         Subject to the foregoing, such assignments may, if permitted by law, be
         by blanket assignments for Loans covering Mortgaged Properties situated
         within the same county. If the Assignment is in blanket form, a copy of
         the Assignment shall be included in the related individual Mortgage
         File.

                  (iii) The originals of any and all instruments that modify the
         terms and conditions of the Mortgage Note, including but not limited to
         modification, consolidation, extension and assumption agreements
         including any adjustable rate mortgage (ARM) rider, if any,

                  (iv) The originals of all required intervening assignments, if
         any, with evidence of recording thereon, and if such assignment was
         executed pursuant to a power of attorney, a certified true copy of the
         power of attorney certified by the recorder's office, with evidence of
         recording thereon, or certified by a title insurance company or escrow
         company to be a true copy thereof; provided, that if such original
         assignment or power of attorney cannot be delivered with evidence of
         recording thereon on or prior to the Closing Date because of a delay
         caused by the public recording office where such original assignment
         has been delivered for recordation or because such original Assignment
         has been lost, the Depositor shall deliver or cause to be delivered to
         the Trustee a true and correct copy of such Assignment, together with
         (a) in the case of a delay caused by the public recording office, an
         Officer's Certificate signed by a Responsible Officer of the Seller
         stating that such original assignment has been dispatched to the
         appropriate public recording official for recordation or (b) in the
         case of an original assignment that has been lost, a certificate by the
         appropriate county recording office where such assignment is recorded
         or from a title insurance company or escrow company indicating that
         such original was lost and the copy of the original assignment is a
         true and correct copy; and

                  (v) The original mortgagee policy of title insurance
         (including, if applicable, the endorsement relating to the negative
         amortization of the Loans) or in the event such original title policy
         is unavailable, any one of an original title binder, an original
         preliminary title report or an original title commitment or a copy
         thereof certified by the title company with the original policy of
         title insurance to follow within 180 days of the Closing Date.

         The documents and instruments set forth in clauses (i) - (v) above
         shall be called,

                                       42
<PAGE>

collectively, the "Mortgage File".

         If the Depositor cannot deliver the original Mortgage with evidence of
recording thereon concurrently with the execution and delivery of this Agreement
because of a delay caused by the public recording office where such original
Mortgage has been delivered for recordation, the Depositor shall deliver to the
Trustee an Officer's Certificate, with a photocopy of such Mortgage attached
thereto, stating that such original Mortgage has been delivered to the
appropriate public recording official for recordation. The Depositor shall
promptly deliver to the Trustee such original Mortgage with evidence of
recording indicated thereon upon receipt thereof from the public recording
official.

         The Depositor shall, at its own expense, promptly record or cause to be
recorded in the appropriate public real property or other records each
Assignment referred to in Section 2.1(ii), unless the Depositor delivers to the
Trustee an Independent opinion of counsel admitted to practice law in the state
in which such Mortgaged Property is located to the effect that such recordation
is not necessary to secure the interest in the related Mortgaged Properties
against any other transferee or creditor of the Depositor, in which case such
Assignments shall be delivered to the Trustee for the benefit of the
Certificateholders in recordable form. If the Depositor cannot deliver the
original Assignment concurrently with the execution and delivery of this
Agreement solely because it is in the process of being prepared and recorded or
because of a delay caused by the public recording office where such original
Assignment has been delivered for recordation, the Depositor shall deliver a
blanket Officer's Certificate covering all such Assignments stating that such
original Assignment is in the process of being prepared and recorded or it has
been delivered to the appropriate public recording official for recordation. Any
such original recorded Assignment shall be delivered to the Trustee within 180
days following the execution of this Agreement.

         If the Depositor cannot deliver the original title insurance policy
concurrently with the execution and delivery of this Agreement, the Depositor
shall promptly deliver each such original title insurance policy as soon as such
policy becomes available but in no event later than 120 days following the
execution of this Agreement.

         All rights arising out of Loans including, without limitation, all
funds received on or in connection with a Loan shall be held by the Depositor in
trust for the benefit of the Certificateholders. The Depositor shall maintain a
complete set of books and records for each Loan which shall be clearly marked to
reflect the ownership of each Loan by the Certificateholders.

         It is the express intent of this Agreement that the conveyance of the
Loans by the Depositor to the Trustee as provided in this Section 2.1 be, and be
construed as, a sale of the Loans by the Depositor to the Trustee and that the
sale of the Certificates to the Certificateholders, if they are sold, be, and be
construed as, a sale of a 100% interest in the Loans and the Trust Fund to such
Certificateholders. It is, further, not the intention of this Agreement that
such conveyance be deemed a pledge of the Loans by the Depositor to the Trustee
to secure a debt or other obligation of the Depositor. However, in the event
that, notwithstanding the intent of this Agreement, the Loans are

                                       43
<PAGE>

held to be property of the Depositor, or if for any other reason this Agreement
is held or deemed to create a security interest in the Loans, then (a) this
Agreement shall also be deemed to be a security agreement within the meaning of
Articles 8 and 9 of the New York Uniform Commercial Code; (b) the conveyance
provided for in this Section 2.1 shall be deemed to be a grant by the Depositor
to the Trustee for the benefit of the Certificateholders of a security interest
in all of the Depositor's right, title and interest in and to the Loans and all
amounts payable to the holders of the Loans in accordance with the terms thereof
and all proceeds of the conversion, voluntary or involuntary, of the foregoing
into cash, instruments, securities or other property, including without
limitation all amounts, other than investment earnings, from time to time held
or invested in the Certificate Account, whether in the form of cash,
instruments, securities or other property; (c) the possession by the Trustee or
any Custodian of Mortgage Notes and such other items of property as constitute
instruments, money, negotiable documents or chattel paper shall be deemed to be
"in possession by the secured party" for purposes of perfecting the security
interest pursuant to Section 9-305 of the New York Uniform Commercial Code; and
(d) notifications to persons holding such property, and acknowledgments,
receipts or confirmations from persons holding such property, shall be deemed
notifications to, or acknowledgments, receipts or confirmations from, financial
intermediaries, bailees or agents (as applicable) of the Trustee for the benefit
of the Certificateholders for the purpose of perfecting such security interest
under applicable law (except that nothing in this clause (d) shall cause any
person to be deemed to be an agent of the Trustee for any purpose other than for
perfection of such security interest unless, and then only to the extent,
expressly appointed and authorized by the Trustee in writing). The Depositor and
the Trustee, upon directions from the Depositor, shall, to the extent consistent
with this Agreement, take such actions as may be necessary to ensure that, if
this Agreement were deemed to create a perfected security interest in Loans,
such security interest would be deemed to be a perfected security interest of
first priority under applicable law and will be maintained as such throughout
the term of this Agreement.

         The Trustee is authorized to appoint LaSalle Bank National Association,
Standard Federal Bank, N.A. or any bank or trust company approved by the
Depositor as Custodian of the documents or instruments referred to under (i)
through (v) above, and to enter into a Custodial Agreement for such purpose and
any documents delivered thereunder shall be delivered to the Custodian and any
Officer's Certificates delivered with respect thereto shall be delivered to the
Trustee and the Custodian.

         Section 2.2 ACCEPTANCE BY TRUSTEE. The Trustee acknowledges, subject to
the provisions of Section 2.1 and to any document exceptions reported pursuant
to the Trustee's reviews as described below, receipt of the Mortgage Notes (or
lost note affidavits and indemnities), the Mortgages, the assignments of the
Mortgages and the Officer's Certificates referred to in Section 2.1 above, and
declares that it holds and will hold such documents and the other documents
constituting a part of the Mortgage Files delivered to it as Trustee in trust,
upon the trusts herein set forth, for the use and benefit of all present and
future Certificateholders. The Trustee acknowledges that, as of the date of the
execution of this Agreement, the Mortgage Files have been delivered to the
Trustee and the Trustee has conducted a preliminary review of the Mortgage
Files. The Trustee further acknowledges that such review included a review of
the Mortgage Notes (or lost note affidavits and

                                       44
<PAGE>

indemnities) to determine that the appropriate Mortgage Notes (or lost note
affidavits and indemnities) have been delivered and endorsed in the manner set
forth in Section 2.1(i). In connection with such review, the Trustee shall have
delivered an exceptions report indicating any discrepancies relating to such
review. In addition, the Trustee agrees, for the benefit of Certificateholders,
to review each Mortgage File within 45 days, or with respect to assignments
which must be recorded, within 180 days, after execution of this Agreement to
ascertain that all required documents set forth in items (i), (ii) and (v) and,
to the extent delivered to the Trustee, items (iii) and (iv) of Section 2.1 have
been executed and received, and that such documents relate to the Loans
identified in Exhibit D annexed hereto, and in so doing the Trustee may rely on
the purported due execution and genuineness of any such document and on the
purported genuineness of any signature thereon. The Trustee shall have no duty
to verify or determine whether any Mortgage File should contain documents
described in Sections 2.1(iii) and (iv). The Trustee shall be under no duty or
obligation to inspect, review or make any independent examination of any
documents contained in each Mortgage File beyond the review specifically
required herein. The Trustee makes no representations as to (i) the validity,
legality, sufficiency, enforceability or genuineness of any of the documents
contained in each Mortgage File or any of the Loans identified on the Loan
Schedule, or (ii) the collectability, insurability, effectiveness or suitability
of any such Loan. If at the conclusion of such 45-day period or 180-day period
the Trustee finds any document constituting a part of a Mortgage File not to
have been executed or received or to be unrelated to the Loans identified in
said Exhibit D (each such finding, a "material defect"), the Trustee shall
promptly notify the Depositor, which shall have a period of 90 days after the
REMIC has received notice to correct or cure any such material defect; PROVIDED,
HOWEVER, that if the Trustee shall not have received a document by reason of the
fact that such document shall not have been returned by the appropriate
recording office then the Depositor shall have until a date one year later from
the Cut-Off Date to correct or cure such defect. The Depositor hereby covenants
and agrees that, if any such material defect as defined above is not corrected
or cured, the Depositor will, within 90 days of the REMIC having received
notice, either (i) repurchase the related Loan at a price equal to 100% of the
Principal Balance of such Loan (or any property acquired in respect thereof)
plus accrued interest on such Principal Balance at the applicable Mortgage
Interest Rate to the next scheduled Due Date of such Loan or (ii) substitute for
any Loan to which such material defect relates a different mortgage loan (a
"Substitute Loan") maturing no later than and not more than two years earlier
than the Loan being substituted for and having a principal balance equal to or
less than and a Mortgage Interest Rate equal to or greater than the Mortgage
Interest Rate of the Loan being substituted for, a Loan-to-Value Ratio equal to
or less than the Loan-to-Value Ratio of the Loan being substituted for and
otherwise having such characteristics so that the representations and warranties
of the Depositor set forth in Section 2.3 hereof would not have been incorrect
had such Substitute Loan originally been a Loan; PROVIDED, HOWEVER, that if the
Principal Balance of the original Loan exceeds the principal balance of the
Substitute Loan, an amount equal to that difference shall be deposited by the
Depositor in the Certificate Account; PROVIDED, FURTHER, HOWEVER, that no such
substitution may occur after 90 days of the Closing Date unless the Trustee
shall have received from the Depositor an Opinion of Counsel to the effect that
such substitution will not adversely affect the REMIC status of REMIC I or REMIC
II or constitute a prohibited transaction or substitution under the REMIC
provisions of the Code, and, if applicable, within the meaning of the REMIC
Provisions of the

                                       45
<PAGE>

particular State, if any, which would impose a tax on the Trust Fund. Monthly
Payments due with respect to Substitute Loans in the month of substitution are
not a part of the Trust Fund and will be retained by the Servicer. The Depositor
shall notify each Rating Agency of any such substitution. For the month of
substitution, distributions to Certificateholders will include the Monthly
Payment due on the Loan being substituted for in such month. The purchase price
for the repurchased Loan or property shall be deposited by the Depositor in the
Certificate Account and in the case of a Substitute Loan, the Mortgage File
relating thereto shall be delivered to the Trustee or the Custodian. Upon
receipt by the Trustee of written notification of such deposit signed by a
Servicing Officer or the new Mortgage File, as the case may be, and an Officer's
Certificate that such repurchase or substitution is in accordance with this
Agreement, the Trustee shall release or cause to be released to the Depositor
the related Mortgage File for the Loan being repurchased or substituted for, as
the case may be, and shall execute and deliver or cause to be executed and
delivered such instrument of transfer or assignment presented to it by the
Depositor, in each case without recourse, as shall be necessary to transfer to
the Depositor the Trustee's interest in such original or repurchased Loan or
property and the Trustee shall have no further responsibility with regard to
such Loan. It is understood and agreed that the obligation of the Depositor to
substitute a new Loan for or repurchase any Loan or property as to which such a
material defect in a constituent document exists shall constitute the sole
remedy respecting such defect available to Certificateholders or the Trustee on
behalf of Certificateholders, but such obligation shall survive termination of
this Agreement. Neither the Trustee nor the Custodian shall be responsible for
determining whether any assignment or mortgage delivered pursuant to Section
2.1(ii) is in recordable form or, if recorded, has been properly recorded.

         Section 2.3 REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR WITH
RESPECT TO THE LOANS. The Depositor hereby represents and warrants to the
Trustee as of the Closing Date with respect to the Loans:

                  (i) that the information set forth in the Loan Schedule
         appearing as an exhibit to this Agreement is true and correct in all
         material respects at the date or dates respecting which such
         information is furnished as specified therein;

                  (ii) that as of the date of the transfer of the Loans to the
         Trustee, the Depositor is the sole owner and holder of each Loan free
         and clear of all liens, pledges, charges or security interests of any
         nature and has full right and authority, subject to no interest or
         participation of, or agreement with, any other party, to sell and
         assign the same;

                  (iii) that as of the date of initial issuance of the
         Certificates, no payment of principal of or interest on or in respect
         of any Loan is 30 days or more past due from the Due Date of such Loan;

                  (iv) that to the best of the Depositor's knowledge, as of the
         date of the transfer of the Loans to the Trustee, there is no valid
         offset, defense or counterclaim to any Mortgage Note or Mortgage;

                                       46
<PAGE>

                  (v) that as of the date of the initial issuance of the
         Certificates, there is no proceeding pending, or to the best of the
         Depositor's knowledge, threatened for the total or partial condemnation
         of any of the Mortgaged Property and, to the best of the Depositor's
         knowledge, the Mortgaged Property is free of material damage and is in
         good repair and neither the Mortgaged Property nor any improvement
         located on or being part of the Mortgaged Property is in violation of
         any applicable zoning law or regulation;

                  (vi) that each Loan complies in all material respects with
         applicable state or federal laws, regulations and other requirements,
         pertaining to usury, equal credit opportunity and disclosure laws, and
         each Loan was not usurious at the time of origination;

                  (vii) that to the best of the Depositor's knowledge, as of the
         date of the initial issuance of the Certificates, all insurance
         premiums previously due and owing with respect to the Mortgaged
         Property have been paid and all taxes and governmental assessments
         previously due and owing, and which may become a lien against the
         Mortgaged Property, with respect to the Mortgaged Property have been
         paid;

                  (viii) that each Mortgage Note and the related Mortgage are
         genuine and each is the legal, valid and binding obligation of the
         maker thereof, enforceable in accordance with its terms except as such
         enforcement may be limited by bankruptcy, insolvency, reorganization or
         other similar laws affecting the enforcement of creditors' rights
         generally and by general equity principles (regardless of whether such
         enforcement is considered in a proceeding in equity or at law); all
         parties to the Mortgage Note and the Mortgage had legal capacity to
         execute the Mortgage Note and the Mortgage; and each Mortgage Note and
         Mortgage have been duly and properly executed by the Mortgagor;

                  (ix) that each Mortgage is a valid and enforceable first lien
         on the property securing the related Mortgage Note, and that each Loan
         is covered by an ALTA mortgagee title insurance policy or other form of
         policy or insurance generally acceptable to FNMA or FHLMC, issued by,
         and is a valid and binding obligation of, a title insurer acceptable to
         FNMA or FHLMC insuring the originator, its successor and assigns, as to
         the lien of the Mortgage in the original principal amount of the Loan
         subject only to (a) the lien of current real property taxes and
         assessments not yet due and payable, (b) covenants, conditions and
         restrictions, rights of way, easements and other matters of public
         record as of the date of recording of such Mortgage acceptable to
         mortgage lending institutions in the area in which the Mortgaged
         Property is located or specifically referred to in the appraisal
         performed in connection with the origination of the related Loan and
         (c) such other matters to which like properties are commonly subject
         which do not individually, or in the aggregate, materially interfere
         with the benefits of the security intended to be provided by the
         Mortgage;

                  (x) that as of the initial issuance of the Certificates,
         neither the Depositor nor any prior holder of any Mortgage has, except
         as the Mortgage File may reflect, modified

                                       47
<PAGE>

         the Mortgage in any material respect; satisfied, canceled or
         subordinated such Mortgage in whole or part; released such Mortgaged
         Property in whole or in part from the lien of the Mortgage; or executed
         any instrument of release, cancellation, modification or satisfaction;

                  (xi) that each Mortgaged Property consists of a fee simple
         estate or a condominium form of ownership in real property;

                  (xii) no foreclosure action is threatened or has been
         commenced (except for the filing of any notice of default) with respect
         to the Loan; and except for payment delinquencies not in excess of 30
         days, to the best of the Depositor's knowledge, there is no default,
         breach, violation or event of acceleration existing under the Mortgage
         or the related Mortgage Note and no event which, with the passage of
         time or with notice and the expiration of any grace or cure period,
         would constitute a default, breach, violation or event of acceleration;
         and the Depositor has not waived any default, breach, violation or
         event of acceleration;

                  (xiii) that each Loan was originated on FNMA or FHLMC uniform
         instruments for the state in which the Mortgaged Property is located;

                  (xiv) that based upon a representation by each Mortgagor at
         the time of origination or assumption of the applicable Loan, 93.67% of
         the Loans measured by Principal Balance were to be secured by primary
         residences and no more than 6.33% of the Loans measured by Principal
         Balance were to be secured by second homes;

                  (xv) that an appraisal of each Mortgaged Property was
         conducted at the time of origination of the related Loan, and that each
         such appraisal was conducted in accordance with FNMA or FHLMC criteria,
         on FNMA or FHLMC forms and comparables on at least three properties
         were obtained;

                  (xvi) that no Loan had a Loan-to-Value Ratio at origination in
         excess of 95%;

                  (xvii) the Loans were not selected in manner to adversely
         affect the interests of the Certificateholders and the Depositor knows
         of no conditions which reasonably would cause it to expect any Loan to
         become delinquent or otherwise lose value;

                  (xviii) each Loan was either (A) originated directly by or
         closed in the name of either: (i) a savings and loan association,
         savings bank, commercial bank, credit union, insurance company, or
         similar institution which is supervised and examined by a federal or
         state authority or (ii) a mortgagee approved by the Secretary of
         Housing and Urban Development pursuant to Sections 203 and 211 of the
         National Housing Act or (B) originated or underwritten by an entity
         employing underwriting standards consistent with the underwriting
         standards of an institution as described in subclause (A)(i) or (A)(ii)
         above;

                                       48
<PAGE>

                  (xix) each Loan is a "qualified mortgage" within the meaning
         ofss.860G of the Code without regard to (Section) 1.860G-2(f) of the
         REMIC Provisions or any similar rule;

                  (xx) each Loan that has a Loan-to-Value Ratio in excess of 80%
         is covered by a primary mortgage insurance policy; and

                  (xxi) that no Loan permits negative amortization or the
         deferral of accrued interest.

         It is understood and agreed that the representations and warranties set
forth in this Section 2.3 shall survive delivery of the respective Mortgage
Files to the Trustee, or to a Custodian, as the case may be. Upon discovery by
the Depositor, Servicer, the Trustee or any Custodian of a breach of any of the
foregoing representations and warranties (referred to herein as a "breach"),
without regard to any limitation set forth in such representation or warranty
concerning the knowledge of the Depositor as to the facts stated therein, which
breach materially and adversely affects the interests of the Certificateholders
in the related Loan, the party discovering such breach shall give prompt written
notice to the others and to each Rating Agency.

         Within 90 days of its discovery or its receipt or any Seller's receipt
of notice of breach, the Depositor shall or shall cause such Seller to cure such
breach in all material respects or shall repurchase the Loan or any property
acquired in respect thereof from the Trustee at a repurchase price equal to 100%
of the Principal Balance of such Loan plus accrued interest on such Principal
Balance at the Mortgage Interest Rate to the next scheduled Installment Due Date
of such Loan or remove such Loan from the Trust Fund and substitute in its place
a Substitute Loan or Loans with the characteristics set forth in Section 2.2
above for Substitute Loans; provided, however, that if such breach would cause
the Loan to be other than a "qualified mortgage" as defined in Section
860G(a)(3) of the Code, any such cure, repurchase or substitution must occur
within 90 days from the date such breach was discovered; provided, further, that
no substitution (or cure which would constitute a loan modification for federal
income tax purposes) may be effected any later than two years after the Closing
Date; provided, further, that as a pre-condition to any substitution (or cure
which would constitute a loan modification for federal income tax purposes) to
be effected later than 90 days after the Closing Date (and within two years of
the Closing Date), the Trustee shall receive from the Depositor an Opinion of
Counsel to the effect that such substitution (or cure which would constitute a
loan modification for federal income tax purposes) will not adversely affect the
REMIC status of REMIC I or REMIC II or constitute a prohibited transaction under
the REMIC Provisions of the Code and, if applicable, the REMIC provisions of the
relevant State. Except as expressly set forth herein, neither the Trustee nor
the Servicer is under any obligation to discover any breach of the above
mentioned representations and warranties. It is understood and agreed that the
obligation of the Depositor or the Seller to repurchase or substitute any Loan
or property as to which a breach has occurred and is continuing shall constitute
the sole remedy respecting such breach available to Certificateholders or the
Trustee on behalf of Certificateholders, and such obligation shall survive as
the obligation of the Depositor, the Seller or their respective successors.

         Section 2.4 AUTHENTICATION AND DELIVERY OF CERTIFICATES; DESIGNATION OF
CERTIFICATES AS

                                       49
<PAGE>

REMIC REGULAR AND RESIDUAL INTERESTS.

         (a) The Trustee acknowledges the transfer to the extent provided herein
and assignment to it of the Trust Fund and, concurrently with such transfer and
assignment, has caused to be authenticated and delivered to or upon the order of
the Depositor, in exchange for the Trust Fund, Certificates evidencing the
entire ownership of the Trust Fund.

         (b) This Agreement shall be construed so as to carry out the intention
of the parties that each of REMIC I and REMIC II be treated as a REMIC at all
times prior to the date on which the Trust Fund is terminated. The "regular
interests" (within the meaning of Section 860G(a)(1) of the Code) in REMIC II
shall consist of the Class A Certificates and the Subordinate Certificates. The
"residual interest" (within the meaning of Section 860G(a)(2) of the Code) in
REMIC II shall consist of Component R-2 of the Class R Certificate. The "regular
interests" (within the meaning of Section 860G(a)(1) of the Code) of REMIC I
shall consist of Class A-1 Regular Interest, the Class A-2 Regular Interest, the
Class A-3 Regular Interest, the Class A-4 Regular Interest, the Class A-5
Regular Interest, the Class A-7 Regular Interest, the Class A-9 Regular
Interest, the Class A-10 Regular Interest, the Class A-P Regular Interest, the
Class A-X Regular Interest, the Class M Regular Interest, the Class B-1 Regular
Interest, the Class B-2 Regular Interest, the Class B-3 Regular Interest, the
Class B-4 Regular Interest and the Class B-5 Regular Interest. The "residual
interest" (within the meaning of Section 860(G)(a)(2) of the Code) of REMIC I
shall consist of Component R-1 of the Class R Certificate.

         (c) All payments with respect to each of the Class A-1, Class A-2,
Class A-3, Class A-4, Class A-5, Class A-7, Class A-9, Class A-10, Class A-P,
Class A-X, Class M, Class B-1, Class B-2, Class B-3, Class B-4 and Class B-5
Certificates shall each be considered to have been made solely from the Regular
Interest of REMIC I having the same designation. All principal payments with
respect to each such Class of Certificates (other than the Class A-6, Class A-8
and Class A-X Certificates) shall be considered to have been made solely from
the principal payments of the corresponding Regular Interests of REMIC I, and
the Class Principal Balance of each such Class of Certificate (other than the
Class A-6, Class A-8 and Class A-X Certificates) shall be equal at all times to
the principal balance of each such corresponding Regular Interest of REMIC I.
All interest payments with respect to the Class A-6 Certificates shall be
considered to have been made solely from the interest payments of the Class A-5
Regular Interest of REMIC I. All interest payments with respect to the Class A-8
Certificates shall be considered to have been made solely from the interest
payments of the Class A-1, Class A-2 and Class A-4 Regular Interests of REMIC I.
All interest payments with respect to the Class A-X Certificates shall be
considered to have been made solely from the interest payments of the Class A-X
Regular Interest of REMIC I, and the notional amount of the Class A-X Regular
Interest shall be equal at all times to the Class A-X Notional Amount.

         The interest rate of each REMIC I Regular Interest Class A-4, Class
A-7, Class A-9, Class A-10, Class A-X, Class M, Class B-1, Class B-2, Class B-3,
Class B-4 and Class B-5 shall be 6.50%. The interest rate of REMIC I Regular
Interest A-1 shall be 6.060184270%. The interest rate of REMIC I Regular
Interest A-2 shall be 6.00%. The interest rate of REMIC I Regular Interest A-3

                                       50
<PAGE>

shall be 5.70%. The interest rate of REMIC I Regular Interest A-5 shall be
9.00%. The Class A-P Regular Interest Classes shall not bear interest, but will
receive principal only in respect of the Loans.

         (d) The Class A-6 Certificates shall be considered for federal income
tax purposes to have a notional amount which is equal at all times to the
principal balance of the Class A-5 Regular Interest, and shall bear interest at
the Class A-6 Interest Rate. The Class A-8 Certificates shall be considered for
federal income tax purposes to have a notional amount which is equal at all
times to the sum the principal balances of the Class A-1 Regular Interest, Class
A-2 Regular Interest and Class A-4 Regular Interest, and shall bear interest at
0.060184270% on the Class A-1 Principal Balance, 0.20% on the Class A-2
Principal Balance, and 0.50% on the Class A-4 Principal Balance. The Class A-X
Certificates shall be considered for federal income tax purposes to have a
notional amount equal to the total Principal Balance of the Premium Loans.

         Section 2.5 DESIGNATION OF STARTUP DAY. The Closing Date is hereby
designated as the "startup day" of each of REMIC I and REMIC II within the
meaning of Section 860G(a)(9) of the Code.

         Section 2.6 NO CONTRIBUTIONS. The Trustee shall not accept or make any
contribution of cash to the Trust Fund after 90 days of the Closing Date, and
shall not accept or make any contribution of other assets to the Trust Fund
unless, in either case, it shall have received an Opinion of Counsel to the
effect that the inclusion of such assets in the Trust Fund will not cause either
REMIC I or REMIC II to fail to qualify as a REMIC at any time that any Class A
or Subordinate Certificates are outstanding or subject the Trust Fund to any tax
on contributions to the REMIC under Section 860G(d) of the Code.

         Section 2.7 REPRESENTATIONS AND WARRANTIES OF THE SERVICER. The
Servicer hereby represents, warrants and covenants to the Trustee for the
benefit of Certificateholders that, as of the date of execution of this
Agreement:

         (a) the Servicer is a corporation duly formed and validly existing
under the laws of the State of Delaware;

         (b) the execution and delivery of this Agreement by the Servicer and
its performance of and compliance with the terms of this Agreement will not
violate the Servicer's corporate charter or by-laws or constitute a default (or
an event which, with notice or lapse of time, or both, would constitute a
default) under, or result in the breach of, any material contract, agreement or
other instrument to which the Servicer is a party or which may be applicable to
the Servicer or any of its assets;

         (c) this Agreement, assuming due authorization, execution and delivery
by the Trustee and the Depositor, constitutes a valid, legal and binding
obligation of the Servicer, enforceable against it in accordance with the terms
hereof subject to applicable bankruptcy, insolvency,

                                       51
<PAGE>

reorganization, moratorium and other laws affecting the enforcement of
creditors' rights generally and to general principles of equity, regardless of
whether such enforcement is considered in a proceeding in equity or at law;

         (d) the Servicer is not in default with respect to any order or decree
of any court or any order, regulation or demand of any federal, state, municipal
or governmental agency, which default might have consequences that would
materially and adversely affect the condition (financial or other) or operations
of the Servicer or its properties or might have consequences that would affect
its performance hereunder;

         (e) no litigation is pending or, to the best of the Servicer's
knowledge, threatened against the Servicer which would prohibit its entering
into this Agreement or performing its obligations under this Agreement; and

         (f) as long as the Servicer has any obligations to service the Loans
hereunder (and it has not assigned such obligations pursuant to Section 3.1(c)),
it shall be a FNMA or a FHLMC-qualified servicer.

         It is understood and agreed that the representations and warranties set
forth in this Section 2.7 shall survive delivery of the respective Mortgage
Files to the Trustee, or to a Custodian, as the case may be.

                                   ARTICLE III

                      ADMINISTRATION AND SERVICING OF LOANS

         Section 3.1 SERVICER TO ACT AS SERVICER; ADMINISTRATION OF THE LOANS.

         (a) The Servicer shall service and administer the Loans on behalf of
the Trust Fund solely in the best interests of and for the benefit of the
Certificateholders (as determined by the Servicer in its reasonable judgment)
and the Trustee (as trustee for Certificateholders) in accordance with the terms
of this Agreement and the respective Loans and, to the extent consistent with
such terms, in the same manner in which, and with the same care, skill, prudence
and diligence with which, it services and administers similar mortgage loans for
other portfolios, giving due consideration to customary and usual standards of
practice of prudent institutional residential mortgage lenders and loan
servicers, and taking into account its other obligations hereunder, but without
regard to:

                  (i) any relationship that the Servicer, any sub-servicer, any
         special servicer or any Affiliate of the Servicer, any sub-servicer or
         any special servicer may have with the related Mortgagor;

                  (ii) the ownership of any Certificate by the Servicer, any
         special servicer or any Affiliate of the Servicer, any sub-servicer or
         any special servicer;

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<PAGE>

                  (iii) the Servicer's, any sub-servicer's or any special
         servicer's right to receive compensation for its services hereunder or
         with respect to any particular transaction; or

                  (iv) the ownership, or servicing or management for others, by
         the Servicer, any sub-servicer or any special servicer, of any other
         mortgage loans or property.

         To the extent consistent with the foregoing and subject to any express
limitations set forth in this Agreement, the Servicer shall seek to maximize the
timely and complete recovery of principal and interest on the Mortgage Notes;
provided, however, that nothing herein contained shall be construed as an
express or implied guarantee by the Servicer of the collectability of the Loans.
Subject only to the above-described servicing standards and the terms of this
Agreement and of the respective Loans, the Servicer, as an independent
contractor, shall service and administer the Loans and shall have full power and
authority, acting alone or through one or more subservicers, special servicers
or agents (subject to paragraph (c) of this Section 3.1), to do any and all
things in connection with such servicing and administration which it may deem
necessary or desirable for the purpose of conserving the assets of the Trust
Fund. Without limiting the generality of the foregoing, the Servicer shall and
is hereby authorized and empowered by the Trustee to continue to execute and
deliver, on behalf of itself, the Certificateholders and the Trustee or any of
them, any and all financing statements, continuation statements and other
documents or instruments necessary to maintain the lien on each Mortgaged
Property and related collateral; and modifications, waivers, consents or
amendments to or with respect to any documents contained in the related Mortgage
File; and any and all instruments of satisfaction or cancellation, or of partial
or full release or discharge and all other comparable instruments, with respect
to the Loans and with respect to the related Mortgaged Properties.
Notwithstanding the foregoing, the Servicer (whether acting alone or through one
or more subservicers, special servicers or agents) shall not modify, amend,
waive or otherwise consent to the change of the terms of any of the Loans
(including without limitation extending the stated maturity date of any Loan or
forgiving principal of or interest on any Loan), except as permitted by Section
3.2 hereof. The Servicer shall service and administer the Loans in accordance
with applicable law and shall provide to the Mortgagors any reports required to
be provided to them thereby. To enable the Servicer to carry out its servicing
and administrative duties hereunder, upon the Servicer's written request
accompanied by the forms of any documents requested, the Trustee shall execute
and deliver to the Servicer any powers of attorney and other documents necessary
or appropriate and the Trustee shall not be responsible for releasing such
powers of attorney. The Trustee shall not be responsible for, and the Servicer
shall indemnify the Trustee for, any action taken by the Servicer pursuant to
the application of any such power of attorney. The relationship of the Servicer
(and of any successor thereto) to the Trustee under this Agreement is intended
by the parties to be that of an independent contractor and not that of a joint
venturer, partner or agent.

         (b) The Servicer, Trustee and Depositor intend that REMIC I and REMIC
II formed hereunder shall constitute, and that the Servicer shall perform its
duties and obligation hereunder so as to qualify each of them as, a "real estate
mortgage investment conduit" as defined in and in accordance with the REMIC
Provisions. The Tax Matters Person, or the Person acting as

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<PAGE>

attorney-in-fact and agent therefor, shall: (a) prepare and file, or cause to be
prepared and filed, federal tax returns (as well as any other federal and state
information and other returns) using a calendar year as the taxable year when
and as required by the REMIC Provisions; (b) make (or cause to be made) an
election, on behalf of each of REMIC I and REMIC II, to be treated as a REMIC on
the Federal tax return and any applicable state or local returns for the first
taxable year, in accordance with the REMIC Provisions; (c) prepare and forward,
or cause to be prepared and forwarded, to the Certificateholders all information
reports (including, without limitation, the information required in connection
with the computation of the present value of anticipated excess inclusions as
required by ss. 1.860E-2(a)(5) of the REMIC Provisions) as and when required to
be provided to them in accordance with the REMIC Provisions; (d) conduct the
affairs of the Trust Fund at all times that REMIC I Regular Interests or REMIC
II Certificates are outstanding so as to maintain the status of each of REMIC I
and REMIC II as a REMIC under the REMIC Provisions; and (e) not knowingly or
intentionally take any action or omit to take any action that would cause the
termination of the REMIC status of either REMIC I or REMIC II.

         (c) The Servicer may enter into sub-servicing agreements with third
parties with respect to any of its respective obligations hereunder, provided,
that (1) any such agreement shall be consistent with the provisions of this
Agreement and (2) no sub-servicer retained by the Servicer shall grant any
modification, waiver or amendment to any Loan without the approval of the
Servicer. Any such sub-servicing agreement may permit the sub-servicer to
delegate its duties to agents or subcontractors so long as the related
agreements or arrangements with such agents or subcontractors are consistent
with the provisions of this Section 3.1(c).

         Any sub-servicing agreement entered into by the Servicer with a Person
other than the Depositor shall provide that it may be assumed or terminated by
the Trustee if the Trustee has assumed the duties of the Servicer, without cost
or obligation to the assuming or terminating party or the Trust Fund, upon the
assumption by such party of the obligations of the Servicer pursuant to Section
7.5.

         Any sub-servicing agreement, and any other transactions or services
relating to the Loans involving a sub-servicer, including (if applicable) the
Depositor in its capacity as sub-servicer under a sub-servicing agreement and
not in its capacity as a party to this Agreement, shall be deemed to be between
the Servicer and such sub-servicer (including the Depositor) alone, and the
Trustee and the Certificateholders shall not be deemed parties thereto and shall
have no claims, rights, obligations, duties or liabilities with respect to the
sub-servicer, except as set forth in Section 3.1(d).

         In the event that the Trustee assumes the servicing obligations of the
Servicer, upon request of the Trustee, the Servicer shall at its own expense
deliver to the Trustee all documents and records relating to any sub-servicing
agreement and the Loans then being serviced thereunder and an accounting of
amounts collected and held by it, if any, and will otherwise use its best
efforts to effect the orderly and efficient transfer of any sub-servicing
agreement to the Trustee.

         (d) Costs incurred by the Servicer in effectuating the timely payment
of taxes and

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<PAGE>

assessments on the Mortgaged Property securing a Mortgage Note shall be
recoverable by the Servicer pursuant to Section 3.3. The Servicer shall ensure
all such taxes and assessments are timely paid.

         The Servicer, as initial servicer, shall pay all of its costs and
proven damages incurred with respect to or arising out of any allegation of
impropriety in its servicing of the Loans. Further, the Servicer shall not be
entitled to reimbursement or indemnification from either the Trust Fund or the
Certificateholders with respect to any such costs, claims and damages.

         (e) Notwithstanding any sub-servicing agreement, any of the provisions
of this Agreement relating to agreements or arrangements between the Servicer
and any Person (including the Depositor) acting as sub-servicer (or its agents
or subcontractors) or any reference to actions taken through any Person
(including the Depositor) acting as sub-servicer or otherwise, the Servicer
shall remain obligated and primarily liable to the Trustee and
Certificateholders for the servicing and administering of the Loans in
accordance with the provisions of this Agreement without diminution of such
obligation or liability by virtue of such sub-servicing agreements or
arrangements or by virtue of indemnification from the Depositor or any other
Person acting as sub-servicer (or its agents or subcontractors) to the same
extent and under the same terms and conditions as if the Servicer alone were
servicing and administering the Loans. The Servicer shall be entitled to enter
into an agreement with any sub-servicer providing for indemnification of the
Servicer by such sub-servicer (including the Depositor and the Trustee), and
nothing contained in this Agreement shall be deemed to limit or modify such
indemnification, but no such agreement for indemnification shall be deemed to
limit or modify this Agreement.

         Section 3.2 COLLECTION OF CERTAIN LOAN PAYMENTS; CUSTODIAL ACCOUNT FOR
P&I.

         (a) The Servicer shall make reasonable efforts to collect all payments
called for under the terms and provisions of the Loans, and shall, to the extent
such procedures shall be consistent with this Agreement, follow such collection
procedures as it follows with respect to conventional mortgage loans it services
for itself and any of its Affiliates; provided, however, that the Servicer
agrees not to permit any modification with respect to any Loan that would change
the manner in which the Mortgage Interest Rate is computed, forgive any
principal or interest or change the term of such Loan. Consistent with the
foregoing, the Servicer may in its discretion (i) waive any assumption fee, late
payment charge or other charge in connection with a Loan, and (ii) arrange a
schedule, running for no more than 180 days after the scheduled Due Date, for
payment of any installment on any Mortgage Note or after the due date of any
other payment due under the related Mortgage Note for the liquidation of
delinquent items, provided, that the Servicer shall continue to be obligated to
make Advances in accordance with Section 4.3 during the continuance of such
period. With respect to any Loans which provide for the right of the holder
thereof to call for early repayment thereof at times specified therein, neither
the Trustee nor the Servicer shall exercise any such right, except that the
Trustee shall exercise such right at the written direction of the Servicer set
forth in an Officer's Certificate in connection with a default under the related
Note. Notwithstanding anything herein to the contrary, neither the Servicer nor
any other party may take

                                       55
<PAGE>

any action that would cause a "significant modification" of any Loan within the
meaning of the REMIC Provisions that would cause REMIC I or REMIC II to fail to
qualify as a REMIC at any time or cause a tax to be imposed on the Trust Fund
under the REMIC Provisions.

         (b) The Servicer shall establish and maintain a separate account as set
forth in Article I (the "Custodial Account for P&I"), and shall on the Closing
Date credit any amounts representing scheduled payments of principal and
interest due after the Cut-off Date but received by the Servicer on or before
the Closing Date, and thereafter on a daily basis the following payments and
collections received or made by it (other than in respect of principal of and
interest on the Loans due on or before the Cut-off Date):

                  (i) All Mortgagor payments on account of principal, including
         Principal Prepayments on the Loans;

                  (ii) All Mortgagor payments on account of interest on the
         Loans, which may be net of that portion thereof which the Servicer is
         entitled to retain as Servicing Fees (adjusted for any amounts related
         to Compensating Interest) pursuant to Section 3.9, as adjusted pursuant
         to Section 4.6;

                  (iii) All net Liquidation Proceeds;

                  (iv) All Insurance Proceeds received by the Servicer, other
         than proceeds to be applied to the restoration or repair of the
         property subject to the related Mortgage or released to the Mortgagor
         in accordance with the Servicer's normal servicing procedures, and all
         amounts deposited by the Servicer with respect to the failure to
         maintain flood or fire and hazard insurance policies, pursuant to
         Section 3.5;

                  (v) All repurchase proceeds from the repurchase of a Loan
         pursuant to a Purchase Obligation;

                  (vi) any amounts required to be deposited pursuant to Section
         3.2(c) in connection with net losses realized on Eligible Investments
         with respect to funds held in the Custodial Account for P&I;

                  (vii) all income and gain realized from any investment of the
         funds in the Custodial Account for P&I in Eligible Investments;

                  (viii) all net income from the renting of REO Property
         pursuant to Section 3.7(c); and

                  (ix) All other amounts required to be deposited in the
         Custodial Account for P&I pursuant to this Agreement.

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<PAGE>

         (c) The Servicer may invest the funds in the Custodial Account for P&I
in Eligible Investments which shall mature not later than the second Business
Day preceding the next Distribution Date unless the Custodial Account for P&I is
maintained with the Trustee in which case they may mature one Business Day prior
to the Distribution Date. The Eligible Investments may not be sold or disposed
of prior to their maturity. All such Eligible Investments shall be made in the
name of the Servicer (in its capacity as such) or its nominee. All income and
gain realized from any such investment shall be for the benefit of the Servicer,
and shall be payable to the Servicer. The amount of any losses incurred in
respect of any such investments shall be deposited in the Custodial Account for
P&I by the Servicer, out of its own funds immediately as realized without right
to reimbursement therefor.

         (d) The foregoing requirements for deposit in the Custodial Account for
P&I shall be exclusive, it being understood and agreed that, without limiting
the generality of the foregoing, payments in the nature of those described in
the last paragraph of this Section 3.2 and payments in the nature of late
payment charges or assumption fees need not be deposited by the Servicer in the
Custodial Account for P&I. All funds deposited by the Servicer in the Custodial
Account for P&I shall be held by it in trust in the Custodial Account for P&I
until disbursed in accordance with Section 4.1 or withdrawn in accordance with
Section 3.3; provided, however, that the Servicer shall withdraw such funds and
deposit them in such manner as to not result in a downgrading or withdrawal of
the rating then assigned to the Certificates by each Rating Agency. If the
Servicer deposits in the Custodial Account for P&I any amount not required to be
deposited therein, it may at any time withdraw such amount from the Custodial
Account for P&I pursuant to Section 3.3(i) of this Agreement.

         Certain of the Loans may provide for payment by the Mortgagor of
amounts to be used for payment of taxes, assessments, hazard or other insurance
premiums or comparable items for the account of the Mortgagor. The Servicer may
deal with these amounts in accordance with its normal servicing procedures.

         Section 3.3 PERMITTED WITHDRAWALS FROM THE CUSTODIAL ACCOUNT FOR P&I.
The Servicer may, from time to time, make withdrawals from the Custodial Account
for P&I for the following purposes:

         (a) to reimburse itself for Advances made by it pursuant to Section 3.4
or 4.3, the Servicer's right to reimburse itself pursuant to this subclause (a)
being limited to (i) amounts received on or in respect of particular Loans
(including, for this purpose, Liquidation Proceeds and Insurance Proceeds which
represent late recoveries of payments of principal and/or interest respecting
which any such Advance was made and any net income received from the renting of
REO Property pursuant to Section 3.7(c)) and (ii) amounts in the Custodial
Account for P&I held for future distribution or withdrawal, such amounts
referred to in clause (ii) of this subclause (a) to be replaced by the Servicer
to the extent that funds in the Custodial Account for P&I on a future Withdrawal
Date are less than the payment required to be made to the Certificate Account
therefrom as of such future Distribution Date;

                                       57
<PAGE>

         (b) (i) to reimburse itself from Liquidation Proceeds for Liquidation
Expenses, (ii) for amounts expended by it pursuant to Section 3.7 in good faith
in connection with the restoration of damaged property and (iii) to the extent
that Liquidation Proceeds after such reimbursement are in excess of the
Principal Balance of the related Loan together with accrued and unpaid interest
thereon at the applicable Pass-Through Rate to the date of such liquidation, net
of any related Advances which were unreimbursed prior to the receipt of such
Liquidation Proceeds, to pay to itself any unpaid Servicing Fees, and any
assumption fees, late payment charges or other Mortgage charges on the related
Loan;

         (c) to pay to itself from any Mortgagor payment as to interest or other
recovery with respect to a particular Loan, to the extent permitted by this
Agreement, that portion of any payment as to interest in excess of interest at
the applicable Pass-Through Rate which the Servicer is entitled to retain as
Servicing Fees pursuant to Section 3.9 or otherwise;

         (d) to reimburse itself for expenses incurred by and recoverable by or
reimbursable to it pursuant to Section 3.1 or 3.5 after the related Mortgagor
has reimbursed the Trust Fund for such expenses or following liquidation of the
related Loan, or pursuant to Section 6.3;

         (e) to pay to itself with respect to each Loan or property acquired in
respect thereof that has been repurchased pursuant to Section 2.2 or 2.3 or
purchased by the Servicer pursuant to Section 9.1 all amounts received thereon
and not distributed as of the date on which the related Principal Balance is
determined;

         (f) to reimburse itself for any Nonrecoverable Advances;

         (g) to disburse to the Trustee or its designee in order that the
Trustee or its designee may make payments to Certificateholders in the amounts
and in the manner provided for in Section 4.1;

         (h) to pay itself any net interest or other income earned and received
on or investment income received with respect to funds in the Custodial Account
for P&I; and

         (i) to make payments to itself or others pursuant to any provision of
this Agreement and to remove any amounts not required to be deposited therein
and to clear and terminate the Custodial Account for P&I pursuant to Section
9.1.

         Since in connection with withdrawals pursuant to subclauses (a), (b),
(c) and (e) the Servicer's entitlement thereto is limited to collections or
other recoveries on the related Loan, the Servicer shall keep and maintain a
separate accounting for each Loan for the purpose of justifying any withdrawal
from the Custodial Account for P&I pursuant to such subclauses.

         The Servicer shall make the withdrawal referred to in subclause (g)
above and shall deposit the amount so withdrawn into the Certificate Account
prior to 4:00 P.M. New York City time on

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<PAGE>

each related Withdrawal Date.

         Section 3.4 TAXES, ASSESSMENTS AND SIMILAR ITEMS; ESCROW ACCOUNTS.

         (a) The Servicer shall establish and maintain one or more accounts
(each, an "Escrow Account") into which all Escrow Payments shall be promptly
deposited and in which all Escrow Payments shall be retained. Escrow Accounts
shall be Eligible Accounts, and funds in the Escrow Account may be invested in
Eligible Investments. The Servicer shall notify the Trustee in writing of the
location and account number of each Escrow Account it establishes and shall
notify the Trustee prior to any subsequent change thereof. Withdrawals of
amounts from an Escrow Account may be made only to: (i) effect payment of taxes,
assessments, insurance premiums and comparable items; (ii) refund to Mortgagors
any sums that are determined to be overages; (iii) reimbursement to the Servicer
for any cost incurred in paying taxes, insurance premiums and assessments or
comparable items; (iv) pay interest, if required and as described below, to
Mortgagors on balances in the Escrow Account; (v) withdraw interest or other
income which may lawfully be retained by the Trust Fund, for deposit into the
Certificate Account; or (vi) clear and terminate the Escrow Account at the
termination of this Agreement in accordance with Section 9.1. Unless otherwise
required by applicable law, any interest earned on funds in Escrow Accounts
shall be remitted to the related Mortgagors if required by the related Mortgage
Note or otherwise to the Servicer as additional servicing compensation.

         (b) With respect to each Loan, the Servicer shall maintain accurate
records with respect to each related Mortgaged Property reflecting the status of
taxes, assessments and other similar items that are or may become a lien on the
related Mortgaged Property and the status of insurance premiums payable with
respect thereto. The Servicer shall require that payments for taxes,
assessments, insurance premiums and other similar items be made by the Mortgagor
at the time they first become due. If a Mortgagor fails to make any such payment
on a timely basis, the Servicer shall advance the amount of any shortfall unless
the Servicer determines in its good faith judgment that such advance would not
be ultimately recoverable from future payments and collections on the related
Loan (including without limitation Insurance Proceeds and Liquidation Proceeds),
or otherwise. The Servicer shall be entitled to reimbursement of advances it
makes pursuant to the preceding sentence, together with interest thereon at the
Federal Funds Rate, from amounts received on or in respect of the related Loan
respecting which such advance was made or if such advance has become
nonrecoverable, in either case to the extent permitted by Section 3.3 of this
Agreement. No costs incurred by the Servicer in effecting the payment of taxes
and assessments on the Mortgaged Properties shall, for the purpose of
calculating distributions to Certificateholders, be added to the amount owing
under the related Loans, notwithstanding that the terms of such Loans so permit.

         Section 3.5 MAINTENANCE OF INSURANCE. The Servicer shall also cause to
be maintained for each Loan fire and hazard insurance with extended coverage as
is customary in the area where the Mortgaged Property is located in an amount
which is at least equal to the lesser of (i) the Principal Balance of such Loan
or (ii) the replacement value costs of improvements securing such Loan. The
Servicer shall cause to be maintained fire and hazard insurance with extended
coverage on each REO

                                       59
<PAGE>

Property in an amount which is at least equal to the greater of (i) an amount
not less than is necessary to avoid the application of any co-insurance clause
contained in the related fire and hazard insurance policy or (ii) the
replacement cost of the improvements which are a part of such property. The
Servicer shall also cause to be maintained for each Loan with a Loan-to- Value
Ratio greater than 80% a primary mortgage insurance policy which will cover at
least 75% of the original fair market value of the related Mortgaged Property
until such time as the principal balance of such Loan is reduced to 80% of the
current fair market value or otherwise in accordance with applicable law. The
Servicer on behalf of the Trustee as Mortgagee shall maintain or cause the
related Mortgagor to maintain for each Loan such other insurance on the related
Mortgaged Property as may be required by the terms of the related Mortgage Note.
If the Mortgaged Property is in an area identified in the Federal Register by
the Flood Emergency Management Agency as having special flood hazards the
Servicer will cause to be maintained a flood insurance policy meeting the
requirements of the current guidelines of the Federal Insurance Administration
with a generally acceptable insurance carrier, in an amount representing
coverage not less than the least of (i) the full insurable value, (ii) the
maximum amount of insurance which is available under the Flood Disaster
Protection Act of 1973, and (iii) the Principal Balance of the related Loan. The
Servicer shall also maintain fire and hazard insurance with extended coverage
and, if applicable, flood insurance on property acquired upon foreclosure, or by
deed in lieu of foreclosure, of any Loan in an amount that is at least equal to
the lesser of (i) the maximum insurable value of the improvements which are a
part of such property and (ii) the principal balance owing on such Loan at the
time of such foreclosure or grant of deed in lieu of foreclosure plus accrued
interest and related Liquidation Expenses. If an REO Property was located at the
time of origination of the related Loan in a federally designated special flood
hazard area, the Servicer will obtain flood insurance in respect thereof
providing substantially the same coverage as described in the preceding
sentence. If at any time during the term of this Agreement a recovery under a
flood or fire and hazard insurance policy in respect of an REO Property is not
available but would have been available if such insurance were maintained
thereon in accordance with the standards applied to Mortgaged Properties
described herein, the Servicer shall either (i) immediately deposit into the
Custodial Account for P&I from its own funds the amount that would have been
recovered or (ii) apply to the restoration and repair of the property from its
own funds the amount that would have been recovered, if such application would
be consistent with the servicing standard set forth in Section 3.1. It is
understood and agreed that such insurance shall be with insurers approved by the
Servicer and that no earthquake or other additional insurance is to be required
of any Mortgagor, other than pursuant to such applicable laws and regulations or
policies of the Servicer as shall at any time be in force and as shall require
such additional insurance. Pursuant to Section 3.2, any amounts collected by the
Servicer under any insurance policies maintained pursuant to this Section 3.5
(other than amounts to be applied to the restoration or repair of the property
subject to the related Mortgage or released to the Mortgagor in accordance with
the Servicer's normal servicing procedures) shall be deposited into the
Custodial Account for P&I, subject to withdrawal pursuant to Section 3.3. Any
cost incurred by the Servicer in maintaining any such insurance shall be
recoverable by the Servicer pursuant to Section 3.3. In the event that the
Servicer shall obtain and maintain a blanket policy issued by an insurer that
qualifies under the guidelines set forth for the Servicer by FNMA or FHLMC,
insuring against hazard losses on all of the Loans, then, to the extent such
policy provides coverage in an amount equal to the unpaid

                                       60
<PAGE>

principal balance on the Loans without co-insurance and otherwise complies with
all other requirements set forth in the first paragraph of this Section 3.5, it
shall conclusively be deemed to have satisfied its obligation as set forth in
such first paragraph, it being understood and agreed that such policy may
contain a deductible clause, in which case the Servicer shall, in the event that
there shall not have been maintained on the related mortgaged or acquired
property an insurance policy complying with the first paragraph of this Section
3.5 and there shall have been a loss which would have been covered by such a
policy had it been maintained, be required to deposit from its own funds into
the Custodial Account for P&I or apply to the restoration of the property the
amount not otherwise payable under the blanket policy because of such deductible
clause.

         The Servicer shall obtain and maintain at its own expense throughout
the term of this Agreement a blanket fidelity bond and an errors and omissions
insurance policy with broad coverage with responsible companies covering the
Servicer's officers and employees and other persons acting on behalf of the
Servicer in connection with its activities under this Agreement. Any such
fidelity bond and errors and omissions insurance shall provide an amount of
coverage and will maintain such coverage at a level which will permit the
Servicer to continue to be a FNMA or a FHLMC-qualified Servicer and shall
protect and insure the Servicer against losses, including forgery, theft,
embezzlement, fraud, errors and omissions and negligent acts of such persons. No
provision of this Section 3.5 requiring such fidelity bond and errors and
omissions insurance shall diminish or relieve the Servicer from its duties and
obligations as set forth in this Agreement.

         Section 3.6 ENFORCEMENT OF DUE-ON-SALE CLAUSES; ASSUMPTION AND
SUBSTITUTION AGREEMENTS. In any case in which property subject to a Mortgage is
conveyed by the Mortgagor, the Servicer will enforce any due-on-sale clause
contained in the related Mortgage Note or Mortgage, to the extent permitted
under applicable law and governmental regulations, but only to the extent that
such enforcement will not adversely affect or jeopardize coverage under any
related insurance policy or result in legal action by the Mortgagor. Subject to
the foregoing, the Servicer is authorized to take or enter into an assumption or
substitution agreement from or with the Person to whom such property has been or
is about to be conveyed. The Servicer is also authorized to release the original
Mortgagor from liability upon the Loan and substitute the new Mortgagor as
obligor thereon. In connection with such assumption or substitution, the
Servicer shall apply such underwriting standards and follow such practices and
procedures as shall be normal and usual and as it applies to mortgage loans
owned solely by it or any of its Affiliates. The Servicer shall notify the
Trustee that any such assumption or substitution agreement has been completed by
forwarding to the Trustee the original copy of such assumption or substitution
agreement, which copy shall be added by the Trustee to the related Mortgage File
and shall, for all purposes, be considered a part of such Mortgage File to the
same extent as all other documents and instruments constituting a part thereof.
In connection with any such assumption or substitution agreement, the interest
rate of the related Mortgage Note shall not be changed. Any fee collected by the
Servicer for entering into an assumption or substitution of liability agreement
will be retained by the Servicer as servicing compensation.

         Notwithstanding the foregoing paragraph or any other provision of this
Agreement, the Servicer shall not be deemed to be in default, breach or any
other violation of its obligations

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hereunder by reason of any conveyance by the Mortgagor of the Mortgaged Property
or any assumption of a Loan by operation of law which the Servicer in good faith
determines it may be restricted by law from preventing, for any reason
whatsoever.

         Section  3.7      REALIZATION UPON DEFAULTED LOANS.

         (a) Consistent with the servicing standard set forth in Section 3.1 and
with a view to the best economic interest of the Trust Fund, the Servicer shall
foreclose upon or otherwise comparably convert (which may include acquisition of
an REO Property) the Mortgaged Properties securing such of the Loans as come
into and continue in default and as to which no satisfactory arrangements can be
made for collection of delinquent payments pursuant to Section 3.2. In
connection with such foreclosure or other conversion, the Servicer shall follow
such practices and procedures as it shall deem necessary or advisable and as
shall be normal and usual in its general mortgage servicing activities. The
foregoing is subject to the proviso that the Servicer shall not be required to
expend its own funds in connection with any foreclosure or to restore any
damaged property unless it shall determine (i) that such foreclosure and/or
restoration expenses will increase the Liquidation Proceeds to
Certificateholders after reimbursement to itself for such expenses and (ii) that
such expenses will be recoverable to it through Liquidation Proceeds (respecting
which it shall have priority for purposes of withdrawal from the Custodial
Account for P&I pursuant to Section 3.3). Any gain on foreclosure or other
conversion of a Liquidated Loan shall be distributed to the Class R
Certificateholder, but only to the extent that such gain is not necessary to
make distributions to the Certificateholders of the other Classes of
Certificates. The Servicer shall be responsible for all other costs and expenses
incurred by it in any such proceedings; provided, however, that it shall be
entitled to reimbursement thereof (as well as any Servicing Fees and other
amounts due it, if any), to the extent, but only to the extent, that withdrawals
from the Custodial Account for P&I with respect thereto are permitted under
Section 3.3. Within 30 days after receipt of Liquidation Proceeds in respect of
a Liquidated Loan, the Servicer shall provide to the Trustee a statement of
accounting for the related Liquidated Loan, including without limitation (i) the
Loan number, (ii) the date the Loan was acquired in foreclosure or deed in lieu,
and the date the Loan became a Liquidated Loan, (iii) the gross sales price and
the related selling and other expenses, (iv) accrued interest calculated from
the foreclosure date to the liquidation date, and (v) such other information as
the Trustee may reasonably specify.

         (b) Prior to any such foreclosure, the Servicer may, at its option,
repurchase any Loan which is 30 days or more delinquent; provided that such
repurchase shall only be made if (i) the Servicer has a contractual right to
require the third party seller of such delinquent Loan to repurchase such Loan,
(ii) such repurchase is made to facilitate a repurchase by such third party
seller and (iii) such repurchase is made at a price equal to the Purchase Price.
Any such repurchase shall be deemed a Principal Prepayment for purposes of this
Agreement and all amounts in respect thereof shall be deposited into the
Custodial Account for P&I pursuant to Section 3.2(b).

         (c) The Trust Fund shall not acquire any real property (or personal
property incident to such real property) except in connection with a default or
imminent default of a Loan. Based on a

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report prepared by an Independent Person who regularly conducts environmental
audits that the Mortgaged Property for which foreclosure proceedings are
contemplated is in compliance with applicable environmental laws, and there are
no circumstances present at such Mortgaged Property relating to the use,
management or disposal of any hazardous materials, wastes, or petroleum based
materials for which investigation, testing, monitoring, containment, clean-up or
remediation could be required under any federal, state or local law or that it
would be in the best economic interest of the Trust Fund to acquire title to
such Mortgaged Property and further to take such actions as would be necessary
and appropriate to effect such compliance and/or respond to such circumstances,
the Servicer will not conduct such foreclosure proceedings. If the Servicer
otherwise becomes aware, under its customary servicing procedures, of an
environmental hazard with respect to a Loan for which foreclosure proceedings
are contemplated, the Servicer will not conduct such foreclosure proceedings
unless it determines in good faith that the liability associated with the
environmental hazard will be less than the Liquidation Proceeds to be realized
from the sale of the related Mortgaged Property. In the event that the Trust
Fund acquires any real property (or personal property incident to such real
property) in connection with a default or imminent default of a Loan, such REO
Property shall be disposed of by the Trust Fund within three years after its
acquisition by the Trust Fund unless the Trustee shall have received from the
Servicer an Opinion of Counsel to the effect that the holding by the Trust Fund
of such REO Property subsequent to three years after its acquisition will not
cause either REMIC I or REMIC II to fail to qualify as a REMIC under the REMIC
Provisions at any time that any REMIC I Regular Interests or Certificates are
outstanding, in which case such REO Property shall be disposed of as soon as
possible by the Trust Fund but in no event shall be held longer than the maximum
period of time during which the Trust Fund is then permitted to hold such REO
Property and allow REMIC I and REMIC II to remain qualified as REMICs under the
REMIC Provisions. The Servicer shall manage, conserve, protect and operate each
such REO Property for the Certificateholders solely for the purpose of its
prompt disposition and sale in a manner which does not cause such REO Property
to fail to qualify as "foreclosure property" within the meaning of Section
860G(a)(8) of the Code. Pursuant to its efforts to sell such REO Property, the
Servicer shall either itself or through an agent selected by the Servicer
protect and conserve such REO Property in the same manner and to such extent as
is customary in the locality where such property is located and may, incident to
its conservation and protection of the interests of the Certificateholders, rent
the same, or any part thereof, as the Servicer deems to be in the best interest
of the Servicer and the Certificateholders for the period prior to the sale of
such REO Property. All proceeds from the renting of such REO Property shall, net
of any costs or expenses of the Servicer in connection therewith, be deposited
into the Custodial Account for P&I pursuant to Section 3.2(b)(viii).

         (d) In the event that title to any Mortgaged Property is acquired in
foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale
shall be issued to the Trustee, or to its nominee on behalf of
Certificateholders. Notwithstanding any such acquisition of title and
cancellation of the related Loan, such Loan shall (except for purposes of
Section 9.1) be considered to be a Loan held in the Trust Fund until such time
as the related REO Property shall be sold by the Trust Fund and shall be reduced
only by collections net of expenses. Consistent with the foregoing, for purposes
of all calculations hereunder, so long as such Loan shall be considered to be an
outstanding Loan, it

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shall be assumed that, notwithstanding that the indebtedness evidenced by the
related Mortgage Note shall have been discharged, such Mortgage Note and, for
purposes of determining the Scheduled Principal Balance thereof, the related
amortization schedule in effect at the time of any such acquisition of title
remain in effect.

         (e) The Servicer shall not acquire for the benefit of the Trust Fund
any personal property pursuant to this Section 3.7 unless either:

                  (i) such personal property is incident to real property
         (within the meaning of Section 856(e)(1) of the Code) so acquired by
         the Servicer for the benefit of the Trust Fund; or

                  (ii) the Servicer shall have requested and received an Opinion
         of Counsel (which opinion shall be an expense of the Trust Fund) to the
         effect that the holding of such personal property by the Trust Fund
         will not cause the imposition of a tax on the Trust Fund under the
         REMIC Provisions or cause either REMIC I or REMIC II of the Trust Fund
         to fail to qualify as a REMIC at any time that any Certificate is
         outstanding.

         Section 3.8      TRUSTEE TO COOPERATE; RELEASE OF MORTGAGE FILES.

         Upon the payment in full of any Loan, or the receipt by the Servicer of
a notification that the payment in full will be escrowed in a manner customary
for such purposes, the Servicer will immediately notify the Trustee by an
Officer's Certificate (which Officer's Certificate shall include a statement to
the effect that all amounts received in connection with such payment which are
required to be deposited in the Custodial Account for P&I pursuant to Section
3.2 have been or will be so deposited) and shall by such Officer's Certificate
request delivery to it of the Mortgage File. Upon receipt of such Officer's
Certificate and request, the Trustee shall promptly release or cause to be
released the related Mortgage File to the Servicer. Upon the Trustee's receipt
of any release or reconveyance documents or instruments relating to the Loan
paid in full, the Trustee shall, not later than the 5th succeeding Business Day,
execute and return such documents and instruments to the Servicer. From time to
time and as appropriate for the servicing or foreclosure of any Loan, the
Trustee shall, upon written request of the Servicer and delivery to the Trustee
of a trust receipt signed by a Servicing Officer, release or cause to be
released the related Mortgage File to the Servicer and shall execute such
documents furnished to it as shall be necessary to the prosecution of any such
proceedings. Such trust receipt shall obligate the Servicer to return each and
every document previously requested from the Mortgage File to the Trustee when
the need therefor by the Servicer no longer exists unless the Loan shall be
liquidated, in which case, upon receipt of a certificate of a Servicing Officer
similar to that hereinabove specified, the trust receipt shall be released by
the Trustee to the Servicer by delivery to a Servicing Officer and the Trustee
shall have no further responsibility with respect to such Mortgage Files.

         Section 3.9      SERVICING COMPENSATION.

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         The Servicer shall be entitled to retain or, if not retained, to
withdraw from the Certificate Account as servicing compensation its Servicing
Fee out of each payment on account of interest on each Loan, subject to
adjustment as provided in Section 4.6. The Servicer shall also be entitled to
payment of unpaid Servicing Fees with respect to a delinquent Loan out of
Liquidation Proceeds with respect to such Loan, to the extent permitted by
Section 3.3(b). Servicing compensation in the form of assumption fees, late
payment charges or otherwise shall be retained by the Servicer and need not be
deposited in the Custodial Account for P&I. The Servicer shall also be entitled
to additional servicing compensation out of Liquidation Proceeds to the extent
provided in Section 3.3(b). The Servicer shall be required to pay all expenses
incurred by it in connection with its servicing activities hereunder (including
maintenance of the blanket hazard insurance policy and the blanket fidelity bond
and errors and omissions policy required by Section 3.5) and shall not be
entitled to reimbursement therefor except as specifically provided in Sections
3.1, 3.3, 3.5 and 3.7.

         On each Distribution Date, the Servicer shall pay to the Certificate
Administrator and the Trustee the Certificate Administration and Trustee Fee out
of the Servicing Fee retained by the Servicer on such Distribution Date. Such
amounts shall be compensation for the activities of the Certificate
Administrator and the Trustee hereunder. The Certificate Administrator and the
Trustee shall be required to pay all expenses incurred by it in connection with
its activities hereunder and shall not be entitled to reimbursement therefor,
except as specifically provided herein.

         Section 3.10 REPORTS TO THE TRUSTEE; CUSTODIAL ACCOUNT FOR P&I
STATEMENTS.

         On or before each Determination Date, the Servicer shall deliver or
cause to be delivered to the Trustee or its designee a statement in electronic
or written form as may be agreed upon by the Servicer and the Trustee containing
the information described in Section 4.2 and such other information as may be
necessary for the Trustee to distribute the amounts to be distributed to the
Certificateholders by the Trustee (the "Servicer's Section 3.10 Report"). Not
later than 25 days after each Distribution Date, the Servicer shall forward or
cause to be forwarded to the Trustee a statement, certified by a Servicing
Officer, setting forth the status of the Custodial Account for P&I as of the
close of business on the related Distribution Date, stating that all
distributions from the Custodial Account for P&I required to be made by this
Agreement have been made for the period covered by such statement (or if any
required distribution has not been made, specifying the nature and status
thereof) and showing, for the period covered by such statement, the aggregate of
deposits into and withdrawals from the Custodial Account for P&I for each
category of deposit specified in Section 3.2 and each category of withdrawal
specified in Section 3.3. Such statement shall also include information as to
the aggregate Principal Balance of all of the Loans as of the last day of the
calendar month immediately preceding such Distribution Date. Copies of such
statement shall be provided to any Certificateholder upon request by the
Servicer, or by the Trustee so long as the Trustee has received the report as
stipulated above at the Servicer's expense if the Servicer shall fail to provide
such copies.

         Section 3.11 ANNUAL STATEMENT AS TO COMPLIANCE.

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         The Servicer will deliver to the Trustee, on or before March 15 of each
year, beginning March 15, 2003, an Officer's Certificate stating as to each
signer thereof, that (i) a review of the activities of the Servicer during the
preceding calendar year and of performance under this Agreement has been made
under such officer's supervision, and (ii) to the best of such officer's
knowledge, based on such review, the Servicer has fulfilled all of its
obligations under this Agreement throughout such year, or if there has been a
default in the fulfillment of any such obligation, specifying each such default
known to such officer and the nature and status thereof. Copies of such
statement shall be provided to each Rating Agency and to any Certificateholder
upon request by the Servicer, or by the Trustee at the Servicer's expense.

         Section 3.12 ANNUAL INDEPENDENT PUBLIC ACCOUNTANTS' SERVICING REPORT.

         On or before March 15 of each year, beginning March 15, 2003, the
Servicer, at its expense, shall cause a firm of independent public accountants
who are members of the American Institute of Certified Public Accountants to
furnish a statement to the Trustee and each Rating Agency to the effect that
such firm has examined certain documents and records relating to the servicing
of the Loans and that, either (a) on the basis of such examination conducted
substantially in compliance with the audit program for mortgages serviced for
FHLMC, such firm is of the opinion that such servicing has been conducted in
compliance with the manner of servicing set forth in agreements substantially
similar to this Agreement except for (i) such exceptions as such firm shall
believe to be immaterial and (ii) such other exceptions as shall be set forth in
such statement or, (b) that their examination conducted substantially in
compliance with the uniform single audit program for mortgage bankers disclosed
no exceptions or errors in records relating to mortgage loans serviced for
others that in their opinion are material and that Paragraph 4 of that program
requires them to report. Copies of such statement shall be provided to
Certificateholders upon request by the Servicer, or by the Trustee at the
Servicer's expense.

         Section 3.13 ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING
THE LOANS. The Servicer shall provide access to the Trustee or to its designees
at its request, and to Certificateholders which are savings and loan
associations, banks or insurance companies, the OTS, the FDIC and the
supervisory agents and examiners of the OTS and the FDIC or examiners of any
other federal or state banking or insurance regulatory authority to the
documentation regarding the Loans if so required by applicable regulations of
the OTS or other regulatory authority, such access to be afforded without charge
but only upon reasonable request and during normal business hours at the offices
of the Servicer designated by it. The Trustee or its designee may without charge
copy any document or electronic record maintained by the Servicer hereunder.

         Section 3.14 [RESERVED].

         Section 3.15 SALE OF DEFAULTED LOANS AND REO PROPERTIES.

         (a) With respect to any Defaulted Loan or REO Property which the
Servicer has determined to sell in accordance with the standards set forth in
Section 3.7, the Servicer shall deliver

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<PAGE>

to the Trustee an Officer's Certificate to the effect that no satisfactory
arrangements can be made for collection of delinquent payments thereon pursuant
to Section 3.2, and, consistent with the servicing standard set forth in Section
3.1 and with a view to the best economic interest of the Trust Fund, the
Servicer has determined to sell such Defaulted Loan or REO Property in
accordance with this Section 3.15. The Servicer may then offer to sell to any
Person any Defaulted Loan or any REO Property or, subject to the following
sentence, purchase any such Defaulted Loan or REO Property (in each case at the
Purchase Price therefor), but shall in any event, so offer to sell any REO
Property no later than the time determined by the Servicer to be sufficient to
result in the sale of such REO Property within the period specified in Section
3.7(c). The Servicer shall accept the highest bid received from any Person for
any Defaulted Loan or any REO Property in an amount at least equal to the
Purchase Price therefor or, at its option, if it has received no bid at least
equal to the Purchase Price therefor, purchase the Defaulted Loan or REO
Property at the Purchase Price.

         In the absence of any such bid or purchase by the Servicer, the
Servicer shall accept the highest bid received from any Person that is
determined by the Servicer to be a fair price for such Defaulted Loan or REO
Property, if the highest bidder is a Person other than an Interested Person, or
is determined to be such a price by the Trustee, if the highest bidder is an
Interested Person. Notwithstanding anything to the contrary herein, neither the
Trustee, in its individual capacity, nor any of its Affiliates may bid for or
purchase any Defaulted Loan or any REO Property pursuant hereto.

         The Servicer shall not be obligated by either of the foregoing
paragraphs or otherwise to accept the highest bid if the Servicer determines, in
accordance with the servicing standard stated in Section 3.1, that rejection of
such bid would be in the best interests of the Certificateholders. In addition,
the Servicer may accept a lower bid if it determines, in accordance with the
servicing standard stated in Section 3.1, that acceptance of such bid would be
in the best interests of the Certificateholders (for example, if the prospective
buyer making the lower bid is more likely to perform its obligations, or the
terms offered by the prospective buyer making the lower bid are more favorable).
In the event that the Servicer determines with respect to any REO Property that
the bids being made with respect thereto are not in the best interests of the
Certificateholders and that the end of the period referred to in Section 3.7(c)
with respect to such REO Property is approaching, the Servicer shall seek an
extension of such period in the manner described in Section 3.7(c).

         (b) In determining whether any bid received from an Interested Person
represents a fair price for any Defaulted Loan or any REO Property, the Trustee
may conclusively rely on the opinion of an Independent appraiser or other expert
in real estate matters retained by the Trustee the expense of which shall be an
expense of the Trust Fund. In determining whether any bid constitutes a fair
price for any Defaulted Loan or any REO Property, the Servicer or the Trustee
(or, if applicable, such appraiser) shall take into account, and any appraiser
or other expert in real estate matters shall be instructed to take into account,
as applicable, among other factors, the period and amount of any delinquency on
the affected Defaulted Loan, the physical condition of the related Mortgaged
Property or such REO Property, the state of the local economy and the Trust
Fund's obligation to dispose of any REO Property within the time period
specified in Section 3.7(c).

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         (c) The Servicer shall act on behalf of the Trust Fund in negotiating
and taking any other action necessary or appropriate in connection with the sale
of any Defaulted Loan or REO Property, including the collection of all amounts
payable in connection therewith. Any sale of a Defaulted Loan or any REO
Property shall be without recourse to, or representation or warranty by, the
Trustee, the Depositor, the Servicer or the Trust Fund (except that any contract
of sale and assignment and conveyance documents may contain customary warranties
of title, so long as the only recourse for breach thereof is to the Trust Fund),
and, if consummated in accordance with the terms of this Agreement, neither the
Servicer, the Depositor nor the Trustee shall have any liability to the Trust
Fund or any Certificateholder with respect to the purchase price therefor
accepted by the Servicer or the Trustee.

         (d) The proceeds of any sale after deduction of the expenses of such
sale incurred in connection therewith shall be promptly deposited in the
Custodial Account for P&I in accordance with Section 3.2(b).

         Section  3.16     DELEGATION OF DUTIES.

         In the ordinary course of business, the Servicer or the Trustee may at
any time delegate any duties hereunder to any Person who agrees to conduct such
duties in accordance with the applicable terms of this Agreement. In case of
such delegation, the Servicer or the Trustee shall supervise, administer,
monitor and oversee the activities of such Person hereunder to insure that such
Person performs such duties in accordance herewith and shall be responsible for
the acts and omissions of such Person to the same extent as it is responsible
for its own actions or omissions hereunder. Any such delegations shall not
relieve the Servicer or the Trustee of its liability and responsibility with
respect to such duties, and shall not constitute a resignation within the
meaning of Section 6.4 hereof and shall be revocable by any successor Servicer
or the Trustee.

         Section  3.17     [RESERVED].

         Section  3.18     [RESERVED].

         Section  3.19     APPOINTMENT OF A SPECIAL SERVICER.

         The Servicer may enter into a special servicing agreement with an
unaffiliated holder of Subordinate Certificates or a holder of a class of
securities representing interests in such Class of Subordinate Certificates,
such agreement to be (i) substantially in the form of Exhibit R hereto or (ii)
subject to each Rating Agency's acknowledgment that the ratings of the
Certificates in effect immediately prior to the entering into of such agreement
would not be qualified, downgraded or withdrawn and the Certificates would not
be placed on credit review status (except for possible upgrading) as a result of
such agreement. Any such agreement may contain provisions whereby such holder
may instruct the Servicer to commence or delay foreclosure proceedings with
respect to delinquent Loans and may contain provisions for the deposit of cash
by the holder that would be

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available for distribution to Certificateholders if Liquidation Proceeds are
less than they otherwise may have been had the Servicer acted in accordance with
its normal procedures.

         Section  3.20     ALLOCATION OF REALIZED LOSSES.

         Prior to each Distribution Date, the Servicer shall determine the
amount of Realized Losses, if any, with respect to each Loan.

         The amount of Realized Losses shall be evidenced by an Officer's
Certificate signed by a Responsible Officer of the Servicer. All Realized
Losses, except for Excess Losses, shall be allocated as follows: (i) for losses
allocable to principal (a) first, to the Subordinate Certificates in reverse
order of seniority until each of their Class Principal Balances have been
reduced to zero and (b) second, to the Senior Certificates, by Pro Rata
Allocation, until the Certificate Principal Balances thereof have been reduced
to zero; PROVIDED, HOWEVER, that prior to the Credit Support Depletion Date if
the loss is recognized with respect to (a) a Discount Loan, the Discount
Fraction of such loss shall be allocated to the Class A-P Certificates and the
remainder of such loss will be allocated as described in clause (i); and (ii)
for losses allocable to interest (a) first, to the Subordinate Certificates in
reverse order of seniority, in reduction of accrued but unpaid interest thereon
and then in reduction of the Class Principal Balance of such Certificates and
(b) second, to the Senior Certificates thereof, by Pro Rata Allocation, until
the Certificate Principal Balances thereof have been reduced to zero.

         Excess Losses shall be allocated among the Senior Certificates and the
Subordinate Certificates by Pro Rata Allocation.

         On each Distribution Date, after giving effect to the principal
distributions and allocations and reimbursement of losses as provided in this
Agreement (without regard to this paragraph), if the Aggregate Certificate
Principal Balance of all outstanding Classes of Certificates exceeds the
aggregate principal balance of the Loans, after deduction of (i) all principal
payments due on or before the Cut-Off Date in respect of each such Loan whether
or not paid and (ii) all amounts of principal in respect of each such Loan that
have been received or advanced and included in the Available Distribution
Amount, and all losses in respect of such Loans that have been allocated to the
Certificates, on such Distribution Date or prior Distribution Dates, then such
excess will be deemed a principal loss and will be allocated (i) first, to the
Subordinate Certificates in reverse order of seniority until each of their Class
Principal Balances has been reduced to zero, and (ii) second, to the Senior
Certificates, other than the Interest Only Certificates, pro rata according to
their Certificate Principal Balances or, in the case of the Accrual
Certificates, the Certificate Principal Balance of that Accrual Certificate on
the Closing Date, if lower in reduction thereof (except all losses allocable to
the Class A-7 Certificates will be allocated to the Class A-10 Certificates
until the Class Principal Balance of the Class A-10 Certificates has been
reduced to zero).

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                                   ARTICLE IV

                    PAYMENTS TO CERTIFICATEHOLDERS; ADVANCES;
                             STATEMENTS AND REPORTS

         Section 4.1 DISTRIBUTIONS TO CERTIFICATEHOLDERS. (a) The Trustee shall
establish and maintain a separate account as set forth in Article I (the
"Certificate Account"), the purpose of which is to accept deposits from the
Servicer and to make distributions to the Certificateholders of the amounts set
forth in this Section 4.1.

         (b) On each Distribution Date, the Trustee or the Paying Agent, if any,
shall (i) withdraw from the Certificate Account the Available Distribution
Amount for such Distribution Date and shall distribute to each
Certificateholder, from the amount so withdrawn and to the extent of the
Available Distribution Amount, such Certificateholder's share (based on the
aggregate Percentage Interests represented by the Certificates of the applicable
Class held by such Certificateholder) of the amounts and in the order of
priority as set forth in the definition of "Certificate Distribution Amount" and
(ii) distribute Excess Liquidation Proceeds to the Class R Certificateholder by
wire transfer in immediately available funds for the account of the
Certificateholder or by any other means of payment acceptable to each
Certificateholder of record on the immediately preceding Record Date (other than
as provided in Section 9.1 respecting the final distribution), as specified by
each such Certificateholder and at the address of such Holder appearing in the
Certificate Register; provided, that if the Trustee has appointed a Certificate
Administrator, such distributions in (i) and (ii) above shall be made in
accordance with written statements received from the Certificate Administrator
pursuant to Section 4.2.

         (c) All reductions in the Certificate Principal Balance of a
Certificate effected by distributions of principal or allocations of Realized
Losses with respect to Loans made on any Distribution Date shall be binding upon
all Holders of such Certificate and of any Certificate issued upon the
registration of transfer or exchange therefor or in lieu thereof, whether or not
such distribution is noted on such Certificate. The final distribution of
principal of each Certificate (and the final distribution with respect to the
Class R Certificate upon termination of the Trust Fund) shall be payable in the
manner provided above only upon presentation and surrender thereof on or after
the Distribution Date therefor at the office or agency of the Trustee or
Certificate Administrator, if any, specified in the notice delivered pursuant to
Section 4.1(d) or Section 9.1.

         (d) Whenever, on the basis of Curtailments, Payoffs and Monthly
Payments on the Loans and Insurance Proceeds and Liquidation Proceeds received
and expected to be received during the applicable Prepayment Period, the Trustee
believes, or the Certificate Administrator, if any, has notified the Trustee
that it believes, that the entire remaining unpaid Class Principal Balance of
any Class of Certificates will become distributable on the next Distribution
Date, the Trustee or the Certificate Administrator, if any, shall, no later than
the Determination Date of the month of such Distribution Date, mail or cause to
be mailed to each Person in whose name a Certificate to be so retired is
registered at the close of business on the Record Date, to the Underwriters and
to each

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Rating Agency a notice to the effect that:

                  (i) it is expected that funds sufficient to make such final
         distribution will be available in the Certificate Account on such
         Distribution Date, and

                  (ii) if such funds are available, (A) such final distribution
         will be payable on such Distribution Date, but only upon presentation
         and surrender of such Certificate at the office or agency of the
         Certificate Registrar maintained for such purpose (the address of which
         shall be set forth in such notice), and (B) no interest shall accrue on
         such Certificate after such Distribution Date.

         Section 4.2 STATEMENTS TO CERTIFICATEHOLDERS. (a) Not later than each
Determination Date, the Servicer shall forward to the Trustee or the Certificate
Administrator, if any, the Servicer's Section 3.10 Report setting forth certain
information with respect to the Loans. With each distribution from the
Certificate Account on a Distribution Date, the Trustee or the Certificate
Administrator, if any, shall, based on the information set forth in the
Servicer's Section 3.10 Report, prepare and forward or make available through
the Trustee's or the Certificate Administrator's, as the case may be, internet
website (which initially will be the Certificate Administrator's internet
website located at www.etrustee.net) and each Certificateholder, a statement
(each a "Certificateholders' Report") setting forth, to the extent applicable,
the amount of the distribution payable to the applicable Class that represents
principal and the amount that represents interest, and the applicable Class
Principal Balance after giving effect to such distribution.

         In addition, not later than each Distribution Date, the Certificate
Administrator or Trustee, as applicable, shall forward or make available to such
Certificateholder, the Trustee (if the Trustee has appointed a Certificate
Administrator) and the Depositor an additional report which sets forth with
respect to the Loans:

                  (i) The number and aggregate Principal Balance of the Loans
         delinquent one, two and three months or more;

                  (ii) The (A) number and aggregate Principal Balance of Loans
         with respect to which foreclosure proceedings have been initiated, and
         (B) the number and aggregate book value of Mortgaged Properties
         acquired through foreclosure, deed in lieu of foreclosure or other
         exercise of rights respecting the Trustee's security interest in the
         Loans;

                  (iii) The aggregate Principal Balance of the Loans as of the
         close of business on the last day of the related Prepayment Period;

                  (iv) The amount of the Servicing Fee retained or withdrawn by
         the Servicer from the Certificate Account and the amount of any Excess
         Liquidation Proceeds received by the Servicer during the related
         Prepayment Period;

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                  (v) The amount of Special Hazard Coverage available to the
         Senior Certificates remaining as of the close of business on the
         applicable Determination Date;

                  (vi) The amount of Bankruptcy Coverage available to the Senior
         Certificates remaining as of the close of business on the applicable
         Determination Date;

                  (vii) The amount of Fraud Coverage available to the Senior
         Certificates remaining as of the close of business on the applicable
         Determination Date;

                  (viii) The amount of Realized Losses allocable to the related
         Certificates on the related Distribution Date and the cumulative amount
         of Realized Losses incurred allocated to such Certificates since the
         Cut-Off Date;

                  (ix) The amount of interest accrued but not paid on the each
         Class of Certificates entitled to interest since (a) the prior
         Distribution Date and (b) the Closing Date;

                  (x) The amount of funds advanced by the Servicer on the
         related Withdrawal Date; and

                  (xi) The total amount of Payoffs and Curtailments received
         during the related Prepayment Period.

         Upon written request by any Certificateholder, the Trustee or the
Certificate Administrator (if so appointed by the Trustee), as soon as
reasonably practicable, shall provide the requesting Certificateholder with such
information as is necessary and appropriate, in Trustee's or the Certificate
Administrator's sole discretion, for purposes of satisfying applicable reporting
requirements under Rule 144A of the Securities Act.

         (b) Upon written request to the Trustee or Certificate Administrator
(if so appointed by the Trustee) by any Certificateholder who is a Holder
thereof at the time of making such request (an "Eligible Certificateholder"),
the Trustee or the Certificate Administrator, if applicable, shall provide in
electronic format loan by loan data with respect to the payment experience of
the Loans containing at least the fields of information listed on Exhibit E
hereto (based on information provided by the Servicer). In addition, upon the
written request of any Eligible Certificateholder, the Trustee or the
Certificate Administrator shall provide similar loan by loan data with respect
to any prior monthly remittance report to the Certificateholders pursuant to
this Agreement (as and when such information becomes available). The expense of
providing any tape or disk pursuant to this subsection shall be an expense of
the Eligible Certificateholder.

         (c) As directed by the Depositor from time to time, the Servicer, as
well as the Trustee and the Certificate Administrator (based on information
provided by the Servicer), are hereby authorized to provide additional
information to any Eligible Certificateholder requesting such information,
including but not limited to property address information for loans that are 90
or more

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days delinquent or as to which foreclosure proceedings have been commenced,
subject to and in accordance with all applicable law.

         Section 4.3 ADVANCES BY THE SERVICER; DISTRIBUTION REPORTS TO THE
TRUSTEE. To the extent described below, the Servicer is obligated to advance its
own funds to the Certificate Account to cover any shortfall between (i) payments
scheduled to be received in respect of Loans serviced by such Servicer, and (ii)
the amounts actually deposited in the Certificate Account on account of such
payments. The Servicer's obligation to make any Advance or Advances described in
this Section 4.3 is effective only to the extent that such Advance is, in the
good faith judgment of the Servicer, reimbursable from Insurance Proceeds or
Liquidation Proceeds of the related Loans or recoverable as late Monthly
Payments with respect to the related Loans or otherwise.

         Prior to the close of business on each Determination Date, the Servicer
shall determine whether or not it will make an Advance on the next Withdrawal
Date and shall furnish a statement to the Certificate Administrator, if any, the
Trustee, the Paying Agent, if any, and to any Certificateholder requesting the
same, setting forth the aggregate amount to be distributed on the next
succeeding Distribution Date on account of principal and interest in respect of
the Loans, stated separately. In the event that full scheduled amounts of
principal and interest in respect of the related Loans shall not have been
received by or on behalf of the Servicer prior to the Withdrawal Date preceding
such Distribution Date and the Servicer shall have determined that an Advance
shall be made in accordance with this Section 4.3, the Servicer shall so specify
and shall specify the aggregate amount of such Advance.

         In the event that the Servicer shall be required to make an Advance, it
shall on the Withdrawal Date either (i) deposit in the Certificate Account an
amount equal to such Advance, (ii) direct the Trustee or the Certificate
Administrator (if so appointed by the Trustee) to make an appropriate entry in
the records of the Certificate Account that funds in such account being held for
future distribution or withdrawal have been, as permitted by this Section 4.3,
used by such Servicer to make such Advance, or (iii) make advances in the form
of any combination of (i) and (ii) aggregating the amount of such Advance. Any
funds being held for future distribution to Certificateholders and so used shall
be replaced by the related Servicer by deposit in the Certificate Account on any
future Withdrawal Date to the extent that funds in the Certificate Account on
the related Distribution Date with respect to the related Loans shall be less
than payments to Certificateholders required to be made on such date with
respect to such Loans.

         The Servicer shall be entitled to reimbursement for any Advance as
provided in Section 3.3 of this Agreement.

         In the event that the Trustee has appointed a Certificate
Administrator, prior to 5:00 P.M. New York City time on the Withdrawal Date, the
Certificate Administrator shall provide the Trustee with a statement regarding
the amount of principal and interest, the Residual Distribution Amount and the
Excess Liquidation Proceeds to be distributed to each Class of Certificates on
such Distribution Date (such amounts to be determined in accordance with the
definition of "Certificate

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Distribution Amount", Section 4.1 hereof and other related definitions set forth
in Article I hereof).

         Section 4.4 NONRECOVERABLE ADVANCES. Any Advance previously made by the
Servicer with respect to a Loan that the Servicer shall determine in its good
faith judgment not to be ultimately recoverable from Insurance Proceeds or
Liquidation Proceeds or otherwise with respect to such Loan or recoverable as
late Monthly Payments with respect to such Loan shall be a Nonrecoverable
Advance. The determination by the Servicer that it has made a Nonrecoverable
Advance or that any advance would constitute a Nonrecoverable Advance, shall be
evidenced by an Officer's Certificate of the Servicer delivered to the Trustee
on the Determination Date and detailing the reasons for such determination.
Notwithstanding any other provision of this Agreement, any insurance policy
relating to the Loans, or any other agreement relating to the Loans to which the
Depositor or the Servicer is a party, (a) the Servicer shall not be obligated
to, and shall not, make any advance that, after reasonable inquiry and in its
sole discretion, it determines would be a Nonrecoverable Advance, and (b) the
Servicer shall be entitled to reimbursement for any Nonrecoverable Advance as
provided in Section 3.3 of this Agreement.

         Section 4.5 FORECLOSURE REPORTS. Each year beginning in 2003 the
Servicer shall make any reports of foreclosures and abandonments of any
Mortgaged Property required by Section 6050J of the Code. In order to facilitate
this reporting process, the Servicer, on or before February 28th of each year,
commencing with 2003, shall provide to the Internal Revenue Service, the Trustee
and the Certificate Administrator, if any, reports relating to each instance
occurring during the previous calendar year in which the Servicer (i) on behalf
of the Trustee acquires an interest in a Mortgaged Property through foreclosure
or other comparable conversion in full or partial satisfaction of a Loan, or
(ii) knows or has reason to know that a Mortgaged Property has been abandoned.
The reports from the Servicer shall be in form and substance sufficient to meet
the reporting requirements imposed by such Section 6050J.

         Section 4.6 ADJUSTMENT OF SERVICING FEES WITH RESPECT TO PAYOFFS. The
aggregate amount of the Servicing Fee subject to retention from deposit into or
withdrawal from the Certificate Account by the Servicer, in any month of
distribution shall be decreased by any Compensating Interest due and owing with
respect to any Loan with respect to which a Payoff has occurred in the related
Prepayment Period. The Servicer shall include the amount of any such
Compensating Interest with the deposits into the Certificate Account on the
related Withdrawal Date. Notwithstanding the foregoing, the amount by which the
Servicing Fee may be reduced with respect to the related Prepayment Period
pursuant to this Section 4.6 shall not exceed an amount greater than the amount
described in clause (i) of the definition of Compensating Interest for all Loans
as to which Payoffs have occurred and the rights of the Certificateholders to
such portion of the Servicing Fee shall not be cumulative.

         Section 4.7 PROHIBITED TRANSACTIONS TAXES AND OTHER TAXES.

         (a) In the event that any tax (including a tax on "prohibited
transactions" as defined in Section 860F(a)(2) of the Code and including any and
all interest, penalties, fines and additions to

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tax, as well as any and all reasonable counsel fees and out-of-pocket expenses
incurred in contesting the imposition of such tax) is imposed on the Trust Fund
and is not otherwise paid pursuant to Section 4.7(b) hereof, the Servicer shall
pay such taxes when and as the same shall be due and payable (but such
obligation shall not prevent the Servicer, the Trustee, the Certificate
Administrator, if any, or any other appropriate Person from contesting any such
tax in appropriate proceedings and shall not prevent the Servicer from
withholding payment of such tax, if permitted by law, pending the outcome of
such proceedings); provided, that the Servicer shall be entitled to be
indemnified for any such taxes (excluding taxes referred to in Section 4.7(b))
to the extent set forth in Section 6.3 hereof so long as the Servicer's failure
to exercise reasonable care with respect to the performance of its duties
hereunder was not the primary cause of the imposition of such taxes. If the
Servicer is indemnified for such taxes pursuant to this Section 4.7(a), such
amount shall be first charged against amounts otherwise distributable to the
Holders of Component R-1 of the Class R Certificate (or, if the tax relates to
REMIC II, Component R-2 of the Class R Certificate) on a pro rata basis, then
against amounts otherwise distributable with respect to the REMIC I Regular
Interests (or, if the tax relates to REMIC II, to the Holders of the REMIC II
Certificates) on a pro rata basis. The Trustee is hereby authorized to retain
from amounts otherwise distributable to the Certificateholders sufficient funds
to reimburse the Servicer for the payment of such tax for which the Servicer is
entitled to indemnification.

         (b) The Servicer shall pay on written demand, and shall indemnify and
hold harmless the Trust Fund from and against, any and all taxes imposed on the
Trust Fund (including, for this purpose, any and all interest, penalties, fines
and additions to tax, as well as any and all reasonable counsel fees and
out-of-pocket expenses incurred in contesting the imposition of such tax).

         Section  4.8      TAX ADMINISTRATION.

         (a) The Trustee is hereby appointed as attorney-in-fact and agent for
the initial Tax Matters Person; provided, that the Trustee may appoint, and
hereby does so appoint, the Certificate Administrator as attorney-in-fact and
agent for the Tax Matters Person. The Trustee may, by written notice delivered
to the Certificate Administrator, revoke the appointment of the Certificate
Administrator as attorney-in-fact and agent for the Tax Matters Person, in which
case the Trustee shall act in such capacity.

         (b) In order to enable the Trustee or the Certificate Administrator, as
applicable, to perform its duties as set forth in this Section 4.8 and Section
3.1(b), the Servicer agrees to provide any tax forms, instruments or other
documents related thereto, as the Trustee or the Certificate Administrator, as
applicable, may reasonably request, including, without limitation, any tax
forms, instruments or other documents prepared by the Servicer pursuant to this
Section 4.8. In order to enable the Trustee or the Certificate Administrator, as
applicable, to perform its duties as set forth in this Section 4.8 and Section
3.1(b), the Servicer shall use its best efforts to cause to be delivered to the
Trustee or the Certificate Administrator, as applicable, within ten (10) days
after the Closing Date all information or data that the Trustee or the
Certificate Administrator, as applicable, determines to be relevant for tax
purposes to the valuations and offering prices of the Certificates,

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including, without limitation, the price, yield, prepayment assumption and
projected cash flows. Thereafter, the Servicer shall use its best efforts to
provide to the Trustee or the Certificate Administrator, as applicable, promptly
upon request therefor, any such additional information or data that the Trustee
or the Certificate Administrator, as applicable, may, from time to time, request
in order to enable the Trustee or the Certificate Administrator, as applicable,
to perform its duties as set forth in this Section 4.8 and Section 3.1(b).

         Section 4.9 EQUAL STATUS OF SERVICING FEE. The right of the Servicer to
receive its Servicing Fee will be equal and not subordinate to the right of the
Certificateholders to receive principal and interest payments based on their
interests as provided herein. The Servicer's Servicing Fee may be collected from
Monthly Payments as received pursuant to Section 3.2 without deposit into the
Certificate Account, whereas the Certificateholders' distributions shall be made
on a delayed basis as set forth in the terms of the Certificates.

         Section 4.10 APPOINTMENT OF PAYING AGENT AND CERTIFICATE ADMINISTRATOR.
The Trustee may appoint an Eligible Institution to act as a paying agent (the
"Paying Agent") or a certificate administrator (the "Certificate
Administrator"), as the case may be, in order to delegate to such Eligible
Institution any of its duties under this Agreement to administer the issuance,
transfer and exchange of the Certificates, administer payments to
Certificateholders or prepare information related to the Certificates; provided,
that the Trustee shall remain primarily responsible for any duties so delegated;
provided, further, that the Trustee shall receive no additional compensation in
connection with such appointment and delegation.

         Initially, LaSalle Bank National Association will be the Certificate
Administrator and Paying Agent. If LaSalle Bank National Association ceases to
serve as Certificate Administrator or Paying Agent, the Trustee shall send
written notice to all Certificateholders (i) indicating that LaSalle Bank
National Association is no longer in such capacity and (ii) setting forth its
replacement, if any, appointed pursuant to this Section 4.10.

                                    ARTICLE V

                                THE CERTIFICATES

         Section  5.1      THE CERTIFICATES.

         (a) The Certificates shall be substantially in the forms set forth in
Exhibits A and B attached hereto, and shall be executed by the Trustee,
authenticated by the Trustee (or any duly appointed Authenticating Agent) and
delivered to or upon the order of the Depositor upon receipt by the Trustee of
the documents specified in Section 2.1. The Certificates shall be issuable in
Authorized Denominations evidencing Percentage Interests. Certificates shall be
executed by manual or facsimile signature on behalf of the Trust Fund by
authorized officers of the Trustee. Certificates bearing the manual or facsimile
signatures of individuals who were at the time of

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execution the proper officers of the Trustee shall bind the Trust Fund,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Certificates or did not
hold such offices at the date of such Certificates. No Certificate shall be
entitled to any benefit under this Agreement, or be valid for any purpose,
unless there appears on such Certificate a certificate of authentication
substantially in the form provided for herein executed by the Trustee or any
Authenticating Agent by manual signature, and such certificate upon any
Certificate shall be conclusive evidence, and the only evidence, that such
Certificate has been duly authenticated and delivered hereunder. All
Certificates shall be dated the date of their authentication.

         (b) The following definitions apply for purposes of this Section 5.1:
"Disqualified Organization" means any Person which is not a Permitted
Transferee, but does not include any "Pass-Through Entity" which owns or holds a
Residual Certificate and of which a Disqualified Organization, directly or
indirectly, may be a stockholder, partner or beneficiary; "Pass-Through Entity"
means any regulated investment company, real estate investment trust, common
trust fund, partnership, trust or estate, and any organization to which Section
1381 of the Code applies; "Ownership Interest" means, with respect to any
Residual Certificate, any ownership or security interest in such Residual
Certificate, including any interest in a Residual Certificate as the Holder
thereof and any other interest therein whether direct or indirect, legal or
beneficial, as owner or as pledgee; "Transfer" means any direct or indirect
transfer or sale of, or directly or indirectly transferring or selling, any
Ownership Interest in a Residual Certificate; and "Transferee" means any Person
who is acquiring by Transfer any Ownership Interest in a Residual Certificate.

         (c) Restrictions on Transfers of the Residual Certificate to
Disqualified Organizations are set forth in this Section 5.1(c).

                  (i) Each Person who has or who acquires any Ownership Interest
         in a Residual Certificate shall be deemed by the acceptance or
         acquisition of such Ownership Interest to have agreed to be bound by
         the following provisions and to have irrevocably authorized the
         Trustee, the Certificate Administrator or the Paying Agent under clause
         (iii)(A) below to deliver payments to a Person other than such Person
         and to negotiate the terms of any mandatory sale under clause (iii)(B)
         below and to execute all instruments of transfer and to do all other
         things necessary in connection with any such sale. The rights of each
         Person acquiring any Ownership Interest in a Residual Certificate are
         expressly subject to the following provisions:

                           (A) Each Person holding or acquiring any Ownership
                  Interest in a Residual Certificate shall be a Permitted
                  Transferee and shall promptly notify the Trustee or the
                  Certificate Registrar if not the same Person as the Trustee of
                  any change or impending change in its status as a Permitted
                  Transferee.

                           (B) In connection with any proposed Transfer of any
                  Ownership Interest in a Residual Certificate to a U.S. Person,
                  the Trustee or the Certificate Registrar if not the same
                  Person as the Trustee shall require delivery to it, and shall
                  not register the

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                  Transfer of any Residual Certificate until its receipt of (1)
                  an affidavit and agreement (a "Transferee Affidavit and
                  Agreement") attached hereto as Exhibit J from the proposed
                  Transferee, in form and substance satisfactory to the
                  Depositor, representing and warranting, among other things,
                  that it is not a Non-U.S. Person, that such transferee is a
                  Permitted Transferee, that it is not acquiring its Ownership
                  Interest in the Residual Certificate that is the subject of
                  the proposed Transfer as a nominee, trustee or agent for any
                  Person who is not a Permitted Transferee, that for so long as
                  it retains its Ownership Interest in a Residual Certificate,
                  it will endeavor to remain a Permitted Transferee, and that it
                  has reviewed the provisions of this Section 5.1(c) and agrees
                  to be bound by them, and (2) a certificate, attached hereto as
                  Exhibit I, from the Holder wishing to transfer the Residual
                  Certificate, in form and substance satisfactory to the
                  Depositor, representing and warranting, among other things,
                  that no purpose of the proposed Transfer is to allow such
                  Holder to impede the assessment or collection of tax.

                           (C) Notwithstanding the delivery of a Transferee
                  Affidavit and Agreement by a proposed Transferee under clause
                  (B) above, if the Trustee or the Certificate Registrar if not
                  the same Person as the Trustee has actual knowledge that the
                  proposed Transferee is not a Permitted Transferee, no Transfer
                  of an Ownership Interest in a Residual Certificate to such
                  proposed Transferee shall be effected.

                           (D) Each Person holding or acquiring any Ownership
                  Interest in a Residual Certificate agrees by holding or
                  acquiring such Ownership Interest (i) to require a Transferee
                  Affidavit and Agreement from any other Person to whom such
                  Person attempts to transfer its Ownership Interest and to
                  provide a certificate to the Trustee or the Certificate
                  Registrar if not the same Person as the Trustee in the form
                  attached hereto as Exhibit J; (ii) to obtain the express
                  written consent of the Depositor prior to any transfer of such
                  Ownership Interest, which consent may be withheld in the
                  Depositor's sole discretion; and (iii) to provide a
                  certificate to the Trustee or the Certificate Registrar if not
                  the same Person as the Trustee in the form attached hereto as
                  Exhibit I.

                  (ii) The Trustee or the Certificate Registrar if not the same
         Person as the Trustee shall register the Transfer of any Residual
         Certificate only if it shall have received the Transferee Affidavit and
         Agreement, a certificate of the Holder requesting such transfer in the
         form attached hereto as Exhibit J and all of such other documents as
         shall have been reasonably required by the Trustee or the Certificate
         Registrar if not the same Person as the Trustee as a condition to such
         registration.

                  (iii) (A) If any Disqualified Organization shall become a
         Holder of a Residual Certificate, then the last preceding Permitted
         Transferee shall be restored, to the extent permitted by law, to all
         rights and obligations as Holder thereof retroactive to the date of
         registration of such Transfer of such Residual Certificate. If any
         Non-U.S. Person shall

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<PAGE>

         become a Holder of a Residual Certificate, then the last preceding
         Holder which is a U.S. Person shall be restored, to the extent
         permitted by law, to all rights and obligations as Holder thereof
         retroactive to the date of registration of the Transfer to such
         Non-U.S. Person of such Residual Certificate. If a transfer of a
         Residual Certificate is disregarded pursuant to the provisions of
         Treasury Regulations Section 1.860E-1 or Section 1.860G-3, then the
         last preceding Permitted Transferee shall be restored, to the extent
         permitted by law, to all rights and obligations as Holder thereof
         retroactive to the date of registration of such Transfer of such
         Residual Certificate. The Trustee, the Certificate Administrator, the
         Certificate Registrar and the Paying Agent shall be under no liability
         to any Person for any registration of Transfer of a Residual
         Certificate that is in fact not permitted by this Section 5.1(c) or for
         making any payments due on such Certificate to the Holder thereof or
         for taking any other action with respect to such Holder under the
         provisions of this Agreement.

                  (B) If any purported Transferee shall become a Holder of the
         Residual Certificate in violation of the restrictions in this Section
         5.1(c) and to the extent that the retroactive restoration of the rights
         of the Holder of such Residual Certificate as described in clause
         (iii)(A) above shall be invalid, illegal or unenforceable, then the
         Depositor shall have the right, without notice to the Holder or any
         prior Holder of such Residual Certificate, to sell such Residual
         Certificate to a purchaser selected by the Depositor on such terms as
         the Depositor may choose. Such purported Transferee shall promptly
         endorse and deliver the Residual Certificate in accordance with the
         instructions of the Depositor. Such purchaser may be the Depositor
         itself or any affiliate of the Depositor. The proceeds of such sale,
         net of the commissions (which may include commissions payable to the
         Depositor or its affiliates), expenses and taxes due, if any, shall be
         remitted by the Depositor to such purported Transferee. The terms and
         conditions of any sale under this clause (iii)(B) shall be determined
         in the sole discretion of the Depositor, and the Depositor shall not be
         liable to any Person having an Ownership Interest in the Residual
         Certificate as a result of its exercise of such discretion.

                  (iv) The Depositor, on behalf of the Trustee, shall make
         available, upon written request from the Trustee, or the Certificate
         Administrator all information necessary to compute any tax imposed (A)
         as a result of the Transfer of an Ownership Interest in the Residual
         Certificate to any Person who is not a Permitted Transferee, including
         the information regarding "excess inclusions" of such Residual
         Certificate required to be provided to the Internal Revenue Service and
         certain Persons as described in Treasury Regulation Section
         1.860D-1(b)(5), and (B) as a result of any regulated investment
         company, real estate investment trust, common trust fund, partnership,
         trust, estate or organizations described in Section 1381 of the Code
         having as among its record holders at any time any Person who is not a
         Permitted Transferee. Reasonable compensation for providing such
         information may be required by the Depositor from such Person.

                  (v) The provisions of this Section 5.1 set forth prior to this
         Section 5.1(c)(v) may be modified, added to or eliminated, PROVIDED,
         that there shall have been delivered to the

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         Trustee and the Certificate Administrator the following:

                           (A) written notification from each Rating Agency to
                  the effect that the modification, addition to or elimination
                  of such provisions will not cause such Rating Agency to
                  downgrade its then-current Ratings of the Certificates; and

                           (B) an Opinion of Counsel, in form and substance
                  satisfactory to the Depositor (as evidenced by a certificate
                  of the Depositor), to the effect that such modification,
                  addition to or absence of such provisions will not cause the
                  Trust Fund to cease to qualify as a REMIC and will not create
                  a risk that (1) the Trust Fund may be subject to an
                  entity-level tax caused by the Transfer of any Residual
                  Certificate to a Person which is not a Permitted Transferee or
                  (2) a Certificateholder or another Person will be subject to a
                  REMIC-related tax caused by the Transfer of a Residual
                  Certificate to a Person which is not a Permitted Transferee.

                  (vi) The following legend shall appear on all Residual
         Certificates:

                       ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS
                       CERTIFICATE MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE
                       PROVIDES A TRANSFEREE AFFIDAVIT AND AGREEMENT TO THE
                       DEPOSITOR, THE TRUSTEE AND THE CERTIFICATE REGISTRAR THAT
                       (1) SUCH TRANSFEREE IS NOT EITHER (A) THE UNITED STATES,
                       ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN
                       GOVERNMENT, ANY INTERNATIONAL ORGANIZATION, OR ANY AGENCY
                       OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (B) ANY
                       ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN
                       SECTION 521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX
                       IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH ORGANIZATION
                       IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE,
                       (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C)
                       OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING
                       CLAUSES (A), (B), OR (C) BEING HEREINAFTER REFERRED TO AS
                       A "DISQUALIFIED ORGANIZATION"), OR (D) AN AGENT OF A
                       DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH
                       TRANSFER IS TO ENABLE THE TRANSFEROR TO IMPEDE THE
                       ASSESSMENT OR COLLECTION OF TAX. SUCH AFFIDAVIT SHALL
                       INCLUDE CERTAIN REPRESENTATIONS AS TO THE FINANCIAL
                       CONDITION OF THE PROPOSED TRANSFEREE. NOTWITHSTANDING THE
                       REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER,
                       SALE OR OTHER DISPOSITION OF THIS CLASS R CERTIFICATE TO
                       A DISQUALIFIED ORGANIZATION OR AN AGENT

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                       OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL
                       BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER
                       AND SUCH PERSON SHALL NOT BE DEEMED TO BE A
                       CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER INCLUDING,
                       BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
                       CERTIFICATE. EACH HOLDER OF THE CLASS R CERTIFICATE BY
                       ACCEPTANCE OF THIS CERTIFICATE SHALL BE DEEMED TO HAVE
                       CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH.

                  (vii) The Holder of the Class R Certificate issued hereunder,
         while not a Disqualified Organization, is the Tax Matters Person.

         (d) (i) No purchase or transfer of a Senior Certificate or a Senior
Subordinate Certificate or any interest therein shall be made by or to any
"employee benefit plan" subject to ERISA or any "plan" described by Section
4975(e)(1) of the Code, or any entity deemed to hold plan assets of any of the
foregoing by reason of a plan's investment in such entity (each, a "Plan")
unless (A) in the case of any such Class of Certificates (other than the Class R
Certificate), such Plan qualifies as an accredited investor as defined in Rule
501(a)(1) of Regulation D under the Securities Act and either (1) at the time of
such transfer, the Certificates are rated in one of the top four rating
categories by at least one Rating Agency, or (2) the purchaser is an insurance
company general account that is eligible for, and satisfies all of the
requirements of, Sections I and III of Prohibited Transaction Class Exemption
95-60 ("PTCE 95-60") and (B) in the case of a Class R Certificate, the Trustee
receives an Opinion of Counsel acceptable to and in form and substance
satisfactory to the Trustee, the Depositor and the Servicer to the effect that
the purchase or holding of such Class R Certificate is permissible under
applicable law, will not constitute or result in any non-exempt prohibited
transaction under Section 406 of ERISA, or Section 4975 of the Code (or
comparable provisions of any subsequent enactments), and will not subject the
Trustee, the Depositor or the Servicer to any obligation or liability (including
obligations or liabilities under ERISA or Section 4975 of the Code) in addition
to those undertaken in this Agreement, which Opinion of Counsel shall not be an
expense of the Trustee, the Depositor or the Servicer. Each Person who acquires
a Senior Certificate or a Senior Subordinate Certificate shall be deemed to
certify that it meets the foregoing conditions, and that it will not transfer
such Certificate in violation of the foregoing.

                  (ii) No purchase or transfer of a Junior Subordinate
         Certificate shall be made by or to a Plan unless such purchaser or
         transferee is an "insurance company general account" (within the
         meaning of PTCE 95-60) and is eligible for, and satisfies all of the
         requirements for exemptive relief under Sections I and III of PTCE
         95-60. Each Person who acquires a Junior Subordinate Certificate or any
         interest therein shall be deemed to certify and shall be required by
         the Certificate Registrar to provide an Officer's Certificate
         (substantially in the form set forth in Exhibit L hereto) signed by a
         Responsible Officer of such Person, which Officer's Certificate shall
         not be an expense of the Trustee, the Certificate Administrator, if
         any, the Certificate Registrar or the Depositor) that it meets the
         foregoing conditions, and

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<PAGE>

         that it will not transfer such Certificate in violation of the
         foregoing.

         (e) GLOBAL CERTIFICATES. Each Class of Junior Subordinate Certificates
offered and sold to QIBs in reliance on Rule 144A shall be issued initially in
the form of one or more Global Certificates (the "Rule 144A Global
Certificates"), which shall be deposited on behalf of the purchasers of the
Book-Entry Certificates represented thereby with the Trustee, as custodian for
the Depository, and registered in the name of the Depository or a nominee of the
Depository, duly executed and authenticated by the Trustee (or any duly
appointed Authenticating Agent). The aggregate principal amount of the Rule 144A
Global Certificates may from time to time be increased or decreased by
adjustments made on the records of the Certificate Registrar and the Depository
or its nominee as hereinafter provided.

         Each class of the Junior Subordinate Certificates offered and sold in
reliance on Regulation S shall be issued initially, and during the "40 day
distribution compliance period" described below remain, in the form of temporary
Global Certificates (the "Regulation S Temporary Global Certificates"), which
shall be deposited on behalf of the purchasers of the Book-Entry Certificates
represented thereby with the Trustee, as custodian for the Depository, and
registered in the name of the Depository or the nominee of the Depository for
the investors' respective accounts at the Euroclear Operator or Clearstream,
Luxembourg, duly executed and authenticated by the Trustee (or any duly
appointed Authentication Agent) as hereinafter provided.

         The "40 day distribution compliance period" (as defined in Regulation
S) shall be terminated upon the later of (i) 40 days after the Closing Date and
(ii) receipt by the Trustee of a written certificate from the Depository,
together with copies of certificates from the Euroclear Operator and
Clearstream, Luxembourg, certifying that they have received certification of
non-United States beneficial ownership of 100% of the aggregate principal amount
of the Regulation S Temporary Global Certificates (except to the extent of any
beneficial owners thereof who will take delivery of a beneficial ownership
interest in a Rule 144A Global Certificate, all as contemplated by Section
5.12(a)(ii)). Following the termination of the 40 day distribution compliance
period, beneficial interests in the Regulation S Temporary Global Certificates
shall be exchanged for beneficial interests in permanent Global Certificates
(the "Regulation S Permanent Global Certificates"), which will be deposited with
the Trustee, as custodian, and registered in the name of a nominee of the
Depository. Simultaneously with the authentication of the Regulation S Permanent
Global Certificates, the Trustee shall cancel the Regulation S Temporary Global
Certificates. The aggregate principal amount of the Regulation S Temporary
Global Certificates and the Regulation S Permanent Global Certificates may from
time to time be increased or decreased by adjustments made on the records of the
Certificate Registrar and the Depository or its nominee, as the case may be, in
connection with transfers of interest as hereinafter provided.

         Each Global Certificate shall represent such of the outstanding
Book-Entry Certificates as shall be specified therein and each shall provide
that it shall represent the aggregate amount of outstanding Book-Entry
Certificates from time to time endorsed thereon and that the aggregate amount of
outstanding Book-Entry Certificates represented thereby may from time to time be

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reduced or increased, as appropriate, to reflect exchanges and redemptions. Any
endorsement of a Global Certificate to reflect the amount of any increase or
decrease in the amount of outstanding Book-Entry Certificates represented
thereby shall be made by the Trustee, or by the custodian at the direction of
the Trustee, in accordance with instructions given by the holder thereof as
required by Section 5.12.

         Except as set forth in Section 5.12, the Global Certificates may be
transferred, in whole and not in part, only to another nominee of the Depository
or to a successor of the Depository or its nominee.

         (f) None of the Trustee, the Certificate Administrator, the Certificate
Registrar or the Paying Agent shall have any liability to the Trust Fund arising
from a registration or transfer of a Certificate in reliance upon a
certification, Officer's Certificate, affidavit, ruling or Opinion of Counsel
described in this Section 5.1.

         Section 5.2 CERTIFICATES ISSUABLE IN CLASSES; DISTRIBUTIONS OF
PRINCIPAL AND INTEREST; AUTHORIZED DENOMINATIONS. The aggregate principal amount
of Certificates that may be authenticated and delivered under this Agreement is
limited to the aggregate Principal Balance of the Loans as of the Cut-Off Date,
as specified in the Preliminary Statement to this Agreement, except for
Certificates authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Certificates pursuant to Section 5.3. Such
aggregate principal amount shall be allocated among one or more Classes having
designations, types of interests, initial per annum Remittance Rates, initial
Class Principal Balances and last scheduled Distribution Dates as specified in
the Preliminary Statement to this Agreement. The aggregate Percentage Interest
of each Class of Certificates of which the Class Principal Balance equals zero
as of the Cut-Off Date that may be authenticated and delivered under this
Agreement is limited to 100%. Certificates shall be issued in Authorized
Denominations.

         Section 5.3 REGISTRATION OF TRANSFER AND EXCHANGE OF CERTIFICATES. The
Trustee shall cause to be maintained at one of its offices or at its designated
Certificate Registrar, a Certificate Register in which there shall be recorded
the name and address of each Certificateholder. Subject to such reasonable rules
and regulations as the Trustee may prescribe, the Certificate Register shall be
amended from time to time by the Trustee or its agent to reflect notice of any
changes received by the Trustee or its agent pursuant to Section 10.5. The
Trustee hereby appoints LaSalle Bank National Association as the initial
Certificate Registrar. The Trustee may appoint an Eligible Institution to act as
its agent in order to delegate to such Eligible Institution its duties as
Certificate Registrar under this Agreement.

         Upon surrender for registration of transfer of any Certificate to the
Trustee at the office of First Trust of New York, National Association, 100 Wall
Street, Suite 1600, New York, NY 10005, Attention: Glenn Anderson, or such other
address or agency as may hereafter be provided to the Certificate Administrator,
if any, and the Servicer in writing by the Trustee, the Trustee shall execute,
and the Trustee (or any Authenticating Agent) shall authenticate and deliver, in
the name

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of the designated transferee or transferees, one or more new Certificates of
Authorized Denominations of like Percentage Interest. At the option of the
Certificateholders, Certificates may be exchanged for other Certificates in
Authorized Denominations of like Percentage Interest, upon surrender of the
Certificates to be exchanged at any such office or agency. Whenever any
Certificates are so surrendered for exchange, the Trustee shall execute, and the
Trustee, or any Authenticating Agent, shall authenticate and deliver, the
Certificates which the Certificateholder making the exchange is entitled to
receive. Every Certificate presented or surrendered for transfer shall (if so
required by the Trustee or any Authenticating Agent) be duly endorsed by, or be
accompanied by a written instrument of transfer in form satisfactory to the
Trustee or any Authenticating Agent and duly executed by, the Holder thereof or
such Holder's attorney duly authorized in writing.

         A reasonable service charge may be made for any such exchange or
transfer of Certificates, and the Trustee or an Authenticating Agent may require
payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any exchange or transfer of Certificates.

         All Certificates surrendered for exchange or transfer shall be canceled
by the Trustee or any Authenticating Agent.

         Section 5.4 MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES. If (i)
any mutilated Certificate is surrendered to the Trustee or any Authenticating
Agent, or (ii) the Trustee or any Authenticating Agent receives evidence to
their satisfaction of the destruction, loss or theft of any Certificate, and
there is delivered to the Trustee or any Authenticating Agent such security or
indemnity as may be required by them to save each of them harmless, then, in the
absence of notice to the Trustee or any Authenticating Agent that such
Certificate has been acquired by a bona fide purchaser, the Trustee shall
execute and the Trustee or any Authenticating Agent shall authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Certificate, a new Certificate of like Percentage Interest. Upon the
issuance of any new Certificate under this Section 5.4, the Trustee or any
Authenticating Agent may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto and any
other expenses (including the fees and expenses of the Trustee or any
Authenticating Agent) connected therewith. Any replacement Certificate issued
pursuant to this Section 5.4 shall constitute complete and indefeasible evidence
of ownership in the Trust Fund, as if originally issued, whether or not the lost
or stolen Certificate shall be found at any time.

         Section 5.5 PERSONS DEEMED OWNERS. The Depositor, the Certificate
Administrator, the Servicer, the Trustee, and any agent of any of them may treat
the Person in whose name any Certificate is registered as the owner of such
Certificate for the purpose of receiving distributions pursuant to Section 4.1
and for all other purposes whatsoever, and neither the Depositor, the
Certificate Administrator, if any, the Servicer, the Trustee, the Certificate
Registrar, nor any agent of the Depositor, the Certificate Administrator, if
any, the Servicer or the Trustee shall be affected by notice to the contrary.

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         Section 5.6 TEMPORARY CERTIFICATES. Upon the initial issuance of the
Certificates, the Trustee may execute, and the Trustee or any Authenticating
Agent shall authenticate and deliver, temporary Certificates which are printed,
lithographed, typewritten or otherwise produced, in any Authorized Denomination,
of the tenor of the definitive Certificates in lieu of which they are issued and
with such variations in form from the forms of the Certificates set forth as
Exhibits A and B hereto as the Trustee's officers executing such Certificates
may determine, as evidenced by their execution of the Certificates.
Notwithstanding the foregoing, the Certificates may remain in the form set forth
in this Section.

         If temporary Certificates are issued, the Trustee shall cause
definitive Certificates to be prepared within ten Business Days of the Closing
Date or as soon as practicable thereafter. After preparation of definitive
Certificates, the temporary Certificates shall be exchangeable for definitive
Certificates upon surrender of the temporary Certificates at the office or
agency of the Trustee to be maintained as provided in Section 5.10 hereof,
without charge to the Holder. Any tax or governmental charge that may be imposed
in connection with any such exchange shall be borne by the Depositor. Upon
surrender for cancellation of any one or more temporary Certificates, the
Trustee shall execute and the Trustee or any Authenticating Agent shall
authenticate and deliver in exchange therefor a like principal amount of
definitive Certificates of Authorized Denominations. Until so exchanged, the
temporary Certificates shall in all respects be entitled to the same benefits
under this Agreement as definitive Certificates.

         Section 5.7 BOOK-ENTRY FOR BOOK-ENTRY CERTIFICATES. (a) Notwithstanding
the foregoing, the Book-Entry Certificates, upon original issuance, shall be
issued in the form of one or more typewritten Certificates of Authorized
Denomination representing the Book-Entry Certificates, to be delivered to DTC,
the initial Clearing Agency, by, or on behalf of, the Depositor. Additionally,
the Trustee (or any duly appointed Authenticating Agent) shall execute,
authenticate and deliver the Rule 144A Global Certificates and the Regulation S
Permanent Global Certificates which (i) shall be registered in the name of the
Depository or the nominee of the Depository and (ii) shall be delivered by the
Trustee (or its designated Certificate Registrar) to the Depository or pursuant
to the Depository's instructions or held by the Trustee as custodian for the
Depository. The Trustee (or any Authenticating Agent) shall execute,
authenticate and deliver the Regulation S Temporary Global Certificates in
accordance with Section 5.1(e). The Book-Entry Certificates shall initially be
registered on the Certificate Register in the name of Cede & Co., the nominee of
DTC, as the initial Clearing Agency, and no Beneficial Holder shall receive a
definitive certificate representing such Beneficial Holder's interest in any
Class of Book-Entry Certificate, except as provided above and in Section 5.9.
Each Book-Entry Certificate shall bear the following legend:

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

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<PAGE>

         representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
         VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
         registered owner hereof, Cede & Co., has an interest herein.

Unless and until definitive, fully registered Book-Entry Certificates (the
"Definitive Certificates") have been issued to the Beneficial Holders pursuant
to Section 5.9:

                  (a) the provisions of this Section 5.7 shall be in full force
         and effect with respect to the Book-Entry Certificates;

                  (b) the Certificate Administrator, if any, and the Trustee may
         deal with the Clearing Agency for all purposes with respect to the
         Book-Entry Certificates (including the making of distributions on the
         Book-Entry Certificates) as the sole Certificateholder;

                  (c) to the extent that the provisions of this Section 5.7
         conflict with any other provisions of this Agreement, the provisions of
         this Section 5.7 shall control; and

                  (d) the rights of the Beneficial Holders shall be exercised
         only through the Clearing Agency and the DTC Participants and shall be
         limited to those established by law and agreements between such
         Beneficial Holders and the Clearing Agency and/or the DTC Participants.
         Pursuant to the Depositary Agreement, unless and until Definitive
         Certificates are issued pursuant to Section 5.9, the initial Clearing
         Agency will make book-entry transfers among the DTC Participants and
         receive and transmit distributions of principal and interest on the
         related Class of Book-Entry Certificates to such DTC Participants.

         For purposes of any provision of this Agreement requiring or permitting
actions with the consent of, or at the direction of, Holders of Book-Entry
Certificates evidencing a specified Percentage Interest, such direction or
consent may be given by the Clearing Agency at the direction of Beneficial
Holders owning Book-Entry Certificates evidencing the requisite Percentage
Interest represented by the Book-Entry Certificates. The Clearing Agency may
take conflicting actions with respect to the Book-Entry Certificates to the
extent that such actions are taken on behalf of the Beneficial Holders.

         (b) The provisions of the "Operating Procedures of the Euroclear
System" and "Terms and Conditions Governing Use of Euroclear" and the
"Management Regulations" and "Instructions to Participants" of Clearstream,
Luxembourg shall be applicable to interests in the Regulation S Temporary Global
Certificates and the Regulation S Permanent Global Certificates that are held by
the Agent Members through Euroclear or Clearstream, Luxembourg. The procedures
described in this paragraph, to the extent relating to actions to be taken with
respect to any Global Certificate shall be the "Applicable Procedures" for such
actions.

         Section 5.8 NOTICES TO CLEARING AGENCY. Whenever notice or other
communication to the Certificateholders is required under this Agreement, unless
and until Definitive Certificates shall

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have been issued to the related Certificateholders pursuant to Section 5.9, the
Trustee shall give all such notices and communications specified herein to be
given to Holders of the Book-Entry Certificates to the Clearing Agency which
shall give such notices and communications to the related DTC Participants in
accordance with its applicable rules, regulations and procedures.

         Section 5.9 DEFINITIVE CERTIFICATES. Except as provided in this Section
5.9 and in Section 5.12(d), owners of beneficial interests in Global
Certificates will not be entitled to receive Definitive Certificates. If (a) the
Clearing Agency notifies the Certificate Administrator, if any, or the Trustee
that it is no longer willing or able to discharge properly its responsibilities
under the Depositary Agreement with respect to the Book-Entry Certificates and
the Trustee or the Certificate Administrator is unable to locate a qualified
successor, (b) the Depositor, at its option, advises the Certificate
Administrator, if any, or the Trustee in writing that it elects to terminate the
book-entry system with respect to the Book-Entry Certificates through the
Clearing Agency or (c) after the occurrence of an Event of Default,
Certificateholders holding Book-Entry Certificates evidencing Percentage
Interests aggregating not less than 66% of the aggregate Class Principal Balance
of such Certificates advise the Certificate Administrator, if any, or the
Trustee and the Clearing Agency through DTC Participants in writing that the
continuation of a book-entry system with respect to the Book-Entry Certificates
through the Clearing Agency is no longer in the best interests of the
Certificateholders with respect to such Certificates, the Trustee shall notify
or cause to be notified all Certificateholders of Book-Entry Certificates of the
occurrence of any such event and of the availability of Definitive Certificates.
Upon surrender to the Trustee of the Book-Entry Certificates by the Clearing
Agency, accompanied by registration instructions from the Clearing Agency for
registration, the Trustee shall execute and the Trustee or any Authenticating
Agent shall authenticate and deliver the Definitive Certificates. Neither the
Depositor, the Certificate Administrator, if any, the Authenticating Agent nor
the Trustee shall be liable for any delay in delivery of such instructions and
may conclusively rely on, and shall be protected in relying on, such
instructions. Upon the issuance of Definitive Certificates for all of the
Certificates all references herein to obligations imposed upon or to be
performed by the Clearing Agency shall be deemed to be imposed upon and
performed by the Trustee, the Certificate Administrator, if any, and the
Trustee, the Certificate Administrator, the Certificate Registrar and the Paying
Agent shall recognize the Holders of Definitive Certificates as
Certificateholders hereunder.

         Section  5.10     [RESERVED].

         Section  5.11     [RESERVED].

         Section  5.12     TRANSFER RESTRICTIONS.

         (a) TRANSFER AND EXCHANGE OF GLOBAL CERTIFICATES. The transfer and
exchange of Global Certificates or beneficial interests therein shall be
effected through the Depository, in accordance with this Pooling and Servicing
Agreement and the procedures of the Depository therefor, which shall include
restrictions on transfer comparable to those set forth herein to the extent
required by the Securities Act. Beneficial interests in a Global Certificate may
be transferred to persons who

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take delivery thereof in the form of a beneficial interest in the same Global
Certificate in accordance with the transfer restrictions set forth in the legend
referred to in Section 5.13. Transfers of beneficial interests in the Global
Certificates to persons required or permitted to take delivery thereof in the
form of an interest in another Global Certificate shall be permitted as follows:

                  (i) RULE 144A GLOBAL CERTIFICATE TO REGULATION S GLOBAL
         CERTIFICATE. If, at any time, an Owner of a beneficial interest in a
         Rule 144A Global Certificate deposited with the Depository (or the
         Trustee as custodian for the Depository) wishes to transfer its
         interest in such Rule 144A Global Certificate to a person who is
         required or permitted to take delivery thereof in the form of a
         beneficial interest in a Regulation S Global Certificate, such Owner
         shall, subject to compliance with the procedures described in the next
         sentence of this Section 5.12(a)(i), exchange or cause the exchange of
         such beneficial interest for an equivalent beneficial interest in a
         Regulation S Global Certificate. Upon receipt by the Trustee of (1)
         instructions given in accordance with the Applicable Procedures from an
         Agent Member directing the Trustee to credit or cause to be credited a
         beneficial interest in the Regulation S Global Certificate in an amount
         equal to the beneficial interest in the Rule 144A Global Certificate to
         be exchanged, (2) a written order given in accordance with the
         Applicable Procedures containing information regarding the participant
         account of the Depository and the Euroclear Operator or Clearstream,
         Luxembourg account to be credited with such increase, and (3) a
         certificate in the form of Exhibit F given by the transferring Owner
         stating that the transfer of such interest has been made in compliance
         with the transfer restrictions applicable to the Global Certificates
         and pursuant to and in accordance with Rule 903 or Rule 904 of
         Regulation S, then the Trustee, as Certificate Registrar, shall
         instruct the Depository to reduce or cause to be reduced the
         outstanding principal amount of the applicable Rule 144A Global
         Certificate and to increase or cause to be increased the outstanding
         principal amount of the applicable Regulation S Global Certificate by
         the outstanding principal amount of the beneficial interest in the Rule
         144A Global Certificate to be exchanged, to credit or cause to be
         credited to the account of the person specified in such instructions a
         beneficial interest in the Regulation S Global Certificate equal to the
         reduction in the outstanding principal amount of the Rule 144A Global
         Certificate, and to debit, or cause to be debited, from the account of
         the person making such exchange or transfer the beneficial interest in
         the Rule 144A Global Certificate that is being exchanged or
         transferred.

                  (ii) REGULATION S GLOBAL CERTIFICATE TO RULE 144A GLOBAL
         CERTIFICATE. If, at any time an Owner of a beneficial interest in a
         Regulation S Global Certificate deposited with the Depository or with
         the Trustee, as custodian for the Depository, wishes to transfer its
         interest in such Regulation S Global Certificate to a person who is
         required or permitted to take delivery thereof in the form of a
         beneficial interest in a Rule 144A Global Certificate, such Owner
         shall, subject to the Applicable Procedures, exchange or cause the
         exchange of such beneficial interest for an equivalent beneficial
         interest in a Rule 144A Global Certificate as provided in this Section
         5.12(a)(ii). Upon receipt by the Trustee of (1) instructions from the
         Euroclear Operator or Clearstream, Luxembourg, if applicable, and the
         Depository directing

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<PAGE>

         the Trustee, as Certificate Registrar, to credit or cause to be
         credited a beneficial interest in the Rule 144A Global Certificate
         equal to the beneficial interest in the Regulation S Global Certificate
         to be exchanged and containing information regarding the participant
         account with the Depository to be credited with such increase, (2) a
         written order given in accordance with the Applicable Procedures
         containing information regarding the participant account of the
         Depository and (3) if such transfer is being effected prior to the
         expiration of the "40-day distribution compliance period" (as defined
         by Regulation S), a certificate in the form of Exhibit G attached
         hereto given by the Owner of such beneficial interest, then the
         Trustee, as Certificate Registrar, shall instruct the Depository to
         reduce or cause to be reduced the outstanding principal amount of such
         Regulation S Global Certificate and to increase or cause to be
         increased the outstanding principal amount of the applicable Rule 144A
         Global Certificate by the outstanding principal amount of the
         beneficial interest in the Regulation S Global Certificate to be
         exchanged, and the Trustee, as Certificate Registrar, shall instruct
         the Depository, concurrently with such reduction, to credit or cause to
         be credited to the account of the person specified in such instructions
         a beneficial interest in the applicable Rule 144A Global Certificate
         equal to the reduction in the outstanding principal amount of such
         Regulation S Global Certificate and to debit or cause to be debited
         from the account of the person making such transfer the beneficial
         interest in the Regulation S Global Certificate that is being
         transferred.

         (b) TRANSFER AND EXCHANGE FROM DEFINITIVE CERTIFICATES TO DEFINITIVE
CERTIFICATES. If Definitive Certificates are presented by a Certificateholder to
the Trustee (or its designated Certificate Registrar) with a request to register
the transfer of Definitive Certificates in the form of other Definitive
Certificates, the Trustee (or its designated Certificate Registrar) shall
register the transfer or make the exchange as requested; PROVIDED, HOWEVER, that
the Certificateholder shall (x) satisfy the requirements of Section 5.3 and (y)
make the representations, acknowledgments and agreements listed in Section 5.14.

         (c) TRANSFER AND EXCHANGE OF A DEFINITIVE CERTIFICATE FOR A BOOK-ENTRY
CERTIFICATE IN A RULE 144A GLOBAL CERTIFICATE OR A REGULATION S GLOBAL
CERTIFICATE. The transfer and exchange of a Definitive Certificate for a
beneficial interest in a Rule 144A Global Certificate or Regulation S Global
Certificate shall be effected in accordance with this Pooling and Servicing
Agreement and the procedures of the Depository therefor, which shall include
restrictions on transfer comparable to those set forth herein to the extent
required by the Securities Act. If, at any time a holder of a Definitive
Certificate wishes to transfer its interest in such Certificate to a person who
is required or permitted to take delivery thereof in the form of a beneficial
interest in a Rule 144A Global Certificate or Regulation S Global Certificate,
such Certificateholder shall, subject to the Applicable Procedures, exchange or
cause the exchange of such Definitive Certificate for an equivalent beneficial
interest in a Rule 144A Global Certificate or Regulation S Global Certificate as
provided in this Section. Upon receipt by the Trustee of (1) the Definitive
Certificates for registration of transfer or exchange duly endorsed or
accompanied by a written instruction of transfer in form satisfactory to the
Trustee duly executed by such Certificateholder or by his attorney, duly
authorized in writing, (2) the instructions from the Depository, directing the
Trustee, as Certificate Registrar,

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<PAGE>

to credit or cause to be credited a beneficial interest in the Rule 144A Global
Certificate or Regulation S Global Certificate equal to the Definitive
Certificate to be exchanged, such instructions to contain information regarding
the participant account with the Depository to be credited with such increase,
and (3) a written order given in accordance with the Applicable Procedures
containing information regarding the participant account of the Depository, then
the Trustee, as Certificate Registrar, shall instruct the Depository to increase
or cause to be increased the outstanding principal amount of the applicable Rule
144A Global Certificate or Regulation S Global Certificate by the outstanding
principal amount of the Definitive Certificate to be exchanged, and the Trustee,
as Certificate Registrar, shall instruct the Depository, concurrently with such
increase, to credit or cause to be credited to the account of the person
specified in such instructions a beneficial interest in the applicable Rule 144A
Global Certificate or Regulation S Global Certificate equal to the outstanding
principal amount of such Definitive Certificate being transferred.

         Each transferee of any Definitive Certificate pursuant to this Section
shall be deemed to have made the representations and warranties listed in
Section 5.14 hereof.

         (d) Transfer of a Book-Entry Certificate in a Rule 144A Global
Certificate or Regulation S Permanent Global Certificate for a Definitive
Certificate. Any person having a beneficial interest in a Rule 144A Global
Certificate or Regulation S Permanent Global Certificate may upon the
satisfaction of the requirements of Section 5.9 and subject to the Applicable
Procedures, exchange such beneficial interest for a Definitive Certificate. Upon
receipt by the Trustee of written instructions or such other form of
instructions as is customary for the Depository (or the Euroclear Operator or
Clearstream, Luxembourg, if applicable), from the Depository or its nominee on
behalf of any Person having a beneficial interest in a Rule 144A Global
Certificate or Regulation S Permanent Global Certificate, then the Trustee or
the custodian, at the direction of the Trustee, shall, in accordance with the
standing instructions and procedures existing between the Depository and the
custodian, cause the outstanding principal amount of Rule 144A Global
Certificates or Regulation S Permanent Global Certificates, as applicable, to be
reduced accordingly and, following such reduction, the Trustee (or any duly
appointed Authenticating Agent) shall authenticate and deliver to the transferee
a Definitive Certificate in the appropriate principal amount.

         Definitive Certificates issued in exchange for a Book-Entry Certificate
in a Rule 144A Global Certificate or Regulation S Permanent Global Certificate,
as applicable, pursuant to this Section shall be registered in such names and in
such authorized denominations as the Depository, pursuant to instructions from
its direct or indirect participants or otherwise, shall instruct the Trustee (or
its designated Certificate Registrar). The Trustee (or its designated
Certificate Registrar) shall deliver such Definitive Certificates to the persons
in whose names such Certificates are so registered. Following any such issuance
of Definitive Certificates, the Trustee (or its designated Certificate
Registrar) shall instruct the Depository to reduce or cause to be reduced the
outstanding principal amount of the applicable Global Certificate to reflect the
transfer.

         (e) Restrictions on Transfer and Exchange of Global Certificates.
Notwithstanding any other provision of this Pooling and Servicing Agreement, a
Global Certificate may not be transferred

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as a whole except by the Depository to a nominee of the Depository or by a
nominee of the Depository to the Depository or another nominee of the Depository
or by the Depository or any such nominee to a successor Clearing Agency or a
nominee of such successor Clearing Agency.

         Section 5.13 LEGENDING OF CERTIFICATES. (a) (i) each Global Certificate
and Definitive Certificate will bear a legend in substantially the following
form:

                  "THIS CERTIFICATE (OR ITS PREDECESSOR) HAS NOT BEEN AND IS NOT
                  EXPECTED TO BE REGISTERED UNDER THE UNITED STATES SECURITIES
                  ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND,
                  ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
                  TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT
                  OR BENEFIT OF, UNITED STATES PERSONS, EXCEPT AS SET FORTH IN
                  THE NEXT SENTENCE. BY ITS ACQUISITION HEREOF OR OF A
                  BENEFICIAL INTEREST HEREIN, THE OWNER:

                  (1)      REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL
                           BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES
                           ACT) (A "QIB") AND IS ACQUIRING SUCH CERTIFICATE FOR
                           ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS)
                           OR AS A FIDUCIARY OR AGENT FOR OTHERS, (WHICH OTHERS
                           ARE ALSO QIBS) TO WHOM NOTICE IS GIVEN THAT THE
                           TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (B)
                           IT HAS ACQUIRED THIS CERTIFICATE IN AN OFFSHORE
                           TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE
                           SECURITIES ACT OR (C) IS OTHERWISE ACQUIRING THIS
                           CERTIFICATE IN A TRANSACTION EXEMPT FROM THE
                           SECURITIES ACT, IN WHICH CASE (A) HAS CERTIFIED TO
                           THE TRUSTEE (OR ANY CERTIFICATE REGISTRAR APPOINTED
                           BY IT) IN WRITING THE FACTS SURROUNDING SUCH
                           TRANSFER, IN FORM AND SUBSTANCE SATISFACTORY TO THE
                           TRUSTEE (OR ANY SUCH CERTIFICATE REGISTRAR APPOINTED
                           BY IT) AND THE DEPOSITOR AND (B) HAS DELIVERED A
                           WRITTEN OPINION OF COUNSEL SATISFACTORY TO THE
                           TRUSTEE (OR ANY CERTIFICATE REGISTRAR APPOINTED BY
                           IT) AND THE DEPOSITOR TO THE EFFECT THAT ITS
                           ACQUISITION WILL NOT VIOLATE THE SECURITIES ACT,

                  (2)      AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER
                           THIS CERTIFICATE EXCEPT (A) TO A PERSON WHOM THE
                           SELLER REASONABLY BELIEVES IS A QIB PURCHASING FOR
                           ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB IN A
                           TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A
                           UNDER THE

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                           SECURITIES ACT, (B) IN AN OFFSHORE TRANSACTION
                           MEETING THE REQUIREMENTS OF RULE 903 OR RULE 904
                           UNDER THE SECURITIES ACT, (C) IN A TRANSACTION
                           MEETING THE REQUIREMENTS OF RULE 144 UNDER THE
                           SECURITIES ACT, (D) PURSUANT TO AN EFFECTIVE
                           REGISTRATION STATEMENT UNDER THE SECURITIES ACT, OR
                           (E) SUCH SALE, PLEDGE OR OTHER TRANSFER IS OTHERWISE
                           MADE IN A TRANSFER EXEMPT FROM THE REGISTRATION
                           REQUIREMENTS OF THE SECURITIES ACT, IN WHICH CASE (A)
                           THE TRUSTEE (OR ANY CERTIFICATE REGISTRAR APPOINTED
                           BY IT) SHALL REQUIRE THAT BOTH THE PROSPECTIVE
                           TRANSFEROR AND THE PROSPECTIVE TRANSFEREE CERTIFY TO
                           THE TRUSTEE, THE SELLER, THE DEPOSITOR AND THE
                           INITIAL PURCHASER IN WRITING THE FACTS SURROUNDING
                           SUCH TRANSFER, WHICH CERTIFICATION SHALL BE IN FORM
                           AND SUBSTANCE SATISFACTORY TO THE TRUSTEE (OR ANY
                           CERTIFICATE REGISTRAR APPOINTED BY IT) AND THE
                           DEPOSITOR, AND (B) THE TRUSTEE (OR ANY CERTIFICATE
                           REGISTRAR APPOINTED BY IT) SHALL REQUIRE A WRITTEN
                           OPINION OF COUNSEL (WHICH SHALL NOT BE AT THE EXPENSE
                           OF THE TRUSTEE) SATISFACTORY TO THE TRUSTEE (OR ANY
                           CERTIFICATE REGISTRAR APPOINTED BY IT) AND THE
                           DEPOSITOR TO THE EFFECT THAT SUCH TRANSFER WILL NOT
                           VIOLATE THE SECURITIES ACT OR ANY APPLICABLE STATE
                           SECURITIES LAWS,

                  (3)      AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM
                           THIS CERTIFICATE OR AN INTEREST HEREIN IS TRANSFERRED
                           A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND,

                  (4)      ACKNOWLEDGES THAT ANY ATTEMPTED TRANSFER IN
                           CONTRAVENTION OF THE IMMEDIATELY PRECEDING
                           RESTRICTIONS WILL BE VOID AB INITIO AND THE PURPORTED
                           TRANSFEROR WILL CONTINUE TO BE TREATED AS THE OWNER
                           OF THIS CERTIFICATE FOR ALL PURPOSES.

                  AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION" AND "UNITED
                  STATES" HAVE THE MEANINGS GIVEN TO THEM BY RULE 902 OF
                  REGULATION S UNDER THE SECURITIES ACT. THE POOLING AND
                  SERVICING AGREEMENT UNDER WHICH THIS CERTIFICATE WAS ISSUED
                  CONTAINS A PROVISION REQUIRING THE TRUSTEE (OR CERTIFICATE
                  REGISTRAR APPOINTED BY THE TRUSTEE) TO REFUSE TO REGISTER ANY
                  TRANSFER OF THIS CERTIFICATE IN VIOLATION OF THE FOREGOING."

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                  (ii) each Global Certificate will bear a legend in
substantially the following form:

                  "UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
                  REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
                  CORPORATION ("DTC"), TO THE TRUSTEE, AS DEFINED HEREIN, OR ITS
                  AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND
                  ANY CERTIFICATE IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
                  SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
                  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
                  OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
                  REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
                  HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
                  INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
                  INTEREST HEREIN."

                  (iii) each Regulation S Temporary Global Certificate will bear
a legend in substantially the following form:

                  "THIS REGULATION S TEMPORARY GLOBAL CERTIFICATE IS A
                  "TEMPORARY GLOBAL CERTIFICATE" FOR PURPOSES OF REGULATION S
                  UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
                  (THE "SECURITIES ACT"), WHICH IS EXCHANGEABLE FOR A PERMANENT
                  GLOBAL CERTIFICATE SUBJECT TO THE TERMS AND CONDITIONS SET
                  FORTH HEREIN."

                  (iv) each Regulation S Permanent Global Certificate will bear
a legend in substantially the following form:

                  "THIS REGULATION S PERMANENT GLOBAL CERTIFICATE IS A GLOBAL
                  CERTIFICATE WHICH IS EXCHANGEABLE FOR INTERESTS IN OTHER
                  GLOBAL CERTIFICATES AND DEFINITIVE CERTIFICATES SUBJECT TO THE
                  TERMS AND CONDITIONS SET FORTH HEREIN AND IN THE POOLING AND
                  SERVICING AGREEMENT (AS DEFINED HEREIN)."

         (b) The Initial Purchaser shall not be required to deliver, and neither
the Trustee nor the Certificate Registrar shall demand therefrom, any of the
certifications described in Section 5.12 in connection with the initial issuance
of the Certificates and the delivery thereof by the Trustee (or its designated
Certificate Registrar) on the Closing Date.

         Section  5.14     LIMITATION ON TRANSFER OF OWNERSHIP RIGHTS.

         (a) Each Owner of a Junior Subordinate Certificate, by its acceptance
of any beneficial interest therein, will be deemed to have acknowledged,
represented to and agreed with the Depositor,

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the Initial Purchaser and the Trustee as follows:

                  (i) It understands and acknowledges that the Junior
         Subordinate Certificates are being offered in transactions not
         involving a public offering in the United States within the meaning of
         the Securities Act, have not been registered under the Securities Act
         or any other applicable securities laws, and may not be offered, sold
         or otherwise transferred except in compliance with the registration
         requirements of the Securities Act or any other applicable securities
         law, pursuant to an exemption therefrom or in a transaction not subject
         thereto, and in compliance with the applicable requirements of the
         Pooling and Servicing Agreement.

                  (ii) It acknowledges that none of the Servicer, the Depositor,
         the Trustee, the Certificate Registrar or the Initial Purchaser nor any
         person representing the Servicer, the Depositor, the Trustee, the
         Certificate Registrar or the Initial Purchaser has made any
         representation to it with respect to the Servicer, the Depositor, any
         affiliate thereof, the Trust or the offering or sale of any Junior
         Subordinate Certificates, other than the information contained in the
         Private Placement Memorandum, which Private Placement Memorandum has
         been delivered to it and upon which it is solely relying in making its
         investment decision with respect to the Junior Subordinate
         Certificates; accordingly, it acknowledges that no representation or
         warranty is made by the Servicer, the Depositor, the Trustee, the
         Certificate Registrar or the Initial Purchaser, or any affiliate
         thereof, as to the accuracy or completeness of such materials; and it
         has had access to such financial and other information concerning the
         Servicer, the Depositor, any affiliate thereof, the Trust and the
         Junior Subordinate Certificates as it has deemed necessary in
         connection with its decision to purchase any of the Junior Subordinate
         Certificates, including an opportunity to ask questions of and request
         information from the Servicer, the Depositor, the Trustee and the
         Initial Purchaser. It acknowledges that the delivery of the Private
         Placement Memorandum at any time does not imply that information
         therein is correct as of any time subsequent to its date.

                  (iii) It (A)(i) is a QIB, (ii) is aware that the sale to it is
         being made in reliance on Rule 144A and (iii) is acquiring such
         Certificates for its own account or for the account of a QIB, (B) is
         not a U.S. person and is purchasing such Certificates in an offshore
         transaction pursuant to Regulation S, or (C) is otherwise acquiring
         such Certificates in a transaction exempt from the Securities Act, in
         which case, (a) it has certified to the Trustee (or any Certificate
         Registrar appointed by it) in writing the facts surrounding such
         transfer, in form and substance satisfactory to the Trustee (or any
         such Certificate Registrar appointed by it) and the Depositor and (b)
         it has delivered a written opinion of counsel satisfactory to the
         Trustee (or any Certificate Registrar appointed by it) and the
         Depositor to the effect that its acquisition will not violate the
         Securities Act.

                  (iv) No sale, pledge or other transfer of any Certificate may
         be made by any person except:

                                    (A) in the United States, to a person whom
                           the seller reasonably

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<PAGE>

                           believes after due inquiry is a QIB acting for its
                           own account (and not for the account of others) or as
                           a fiduciary or agent for others (which others are
                           QIBs to whom notice is given that the sale, pledge or
                           other transfer is made) in a transaction meeting the
                           requirements of Rule 144A of the Securities Act
                           ("Rule 144A");

                                    (B) in an offshore transaction complying
                           with Rule 903 or Rule 904 of Regulation S under the
                           Securities Act ("Regulation S");

                                    (C) pursuant to an exemption from
                           registration under the Securities Act provided by
                           Rule 144 under the Securities Act (if available);

                                    (D) pursuant to an effective registration
                           statement under the Securities Act; or

                                    (E) in reliance on another exemption from
                           the registration requirements of the Securities Act
                           and subject to the receipt by the Trustee (or
                           certificate registrar appointed by the Trustee) and
                           the Depositor of (A) a certification of the
                           prospective transferor and the prospective transferee
                           certifying in writing the facts surrounding such
                           transfer, in form satisfactory to the Trustee (or any
                           Certificate Registrar appointed by the Trustee) and
                           the Depositor and (B) a written opinion of counsel,
                           satisfactory to the Trustee (or any Certificate
                           Registrar appointed by the Trustee) and the
                           Depositor, to the effect that such transfer will not
                           violate the Securities Act;

and, in each case, in accordance with the requirements (including, without
limitation, any certification required to be delivered) of this Agreement and
all applicable United States state securities laws. The purchaser will, and each
subsequent holder is required to, notify any subsequent purchaser from it of the
resale restrictions set forth in the preceding sentence.

                  (v) The Certificates will bear the following legends, unless
         the Depositor determines otherwise in accordance with applicable law:

                  "THIS CERTIFICATE (OR ITS PREDECESSOR) HAS NOT BEEN AND IS NOT
                  EXPECTED TO BE REGISTERED UNDER THE UNITED STATES SECURITIES
                  ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND,
                  ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
                  TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT
                  OR BENEFIT OF, UNITED STATES PERSONS, EXCEPT AS SET FORTH IN
                  THE NEXT SENTENCE. BY ITS ACQUISITION HEREOF OR OF A
                  BENEFICIAL INTEREST HEREIN, THE OWNER:

                  (1)      REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL

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                           BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES
                           ACT) (A "QIB") AND IS ACQUIRING SUCH CERTIFICATE FOR
                           ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS)
                           OR AS A FIDUCIARY OR AGENT FOR OTHERS, (WHICH OTHERS
                           ARE ALSO QIBS) TO WHOM NOTICE IS GIVEN THAT THE
                           TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (B)
                           IT HAS ACQUIRED THIS CERTIFICATE IN AN OFFSHORE
                           TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE
                           SECURITIES ACT OR (C) IS OTHERWISE ACQUIRING THIS
                           CERTIFICATE IN A TRANSACTION EXEMPT FROM THE
                           SECURITIES ACT, IN WHICH CASE, (A) HAS CERTIFIED TO
                           THE TRUSTEE (OR ANY CERTIFICATE REGISTRAR APPOINTED
                           BY IT) IN WRITING THE FACTS SURROUNDING SUCH
                           TRANSFER, IN FORM AND SUBSTANCE SATISFACTORY TO THE
                           TRUSTEE (OR ANY SUCH CERTIFICATE REGISTRAR APPOINTED
                           BY IT) AND THE DEPOSITOR AND (B) HAS DELIVERED A
                           WRITTEN OPINION OF COUNSEL SATISFACTORY TO THE
                           TRUSTEE (OR ANY CERTIFICATE REGISTRAR APPOINTED BY
                           IT) AND THE DEPOSITOR TO THE EFFECT THAT ITS
                           ACQUISITION WILL NOT VIOLATE THE SECURITIES ACT,

                  (2)      AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER
                           THIS CERTIFICATE EXCEPT (A) TO A PERSON WHOM THE
                           SELLER REASONABLY BELIEVES IS A QIB PURCHASING FOR
                           ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB IN A
                           TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A
                           UNDER THE SECURITIES ACT, (B) IN AN OFFSHORE
                           TRANSACTION MEETING THE REQUIREMENTS OF RULE 903 OR
                           RULE 904 UNDER THE SECURITIES ACT, (C) IN A
                           TRANSACTION MEETING THE REQUIREMENTS OF RULE 144
                           UNDER THE SECURITIES ACT, (D) PURSUANT TO AN
                           EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
                           ACT, OR (E) SUCH SALE, PLEDGE OR OTHER TRANSFER IS
                           OTHERWISE MADE IN A TRANSFER EXEMPT FROM THE
                           REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, IN
                           WHICH CASE (A) THE TRUSTEE (OR ANY CERTIFICATE
                           REGISTRAR APPOINTED BY IT) SHALL REQUIRE THAT BOTH
                           THE PROSPECTIVE TRANSFEROR AND THE PROSPECTIVE
                           TRANSFEREE CERTIFY TO THE TRUSTEE, THE SELLER, THE
                           DEPOSITOR AND THE INITIAL PURCHASER IN WRITING THE
                           FACTS SURROUNDING SUCH TRANSFER, WHICH CERTIFICATION
                           SHALL BE IN FORM AND SUBSTANCE SATISFACTORY TO THE
                           TRUSTEE (OR ANY CERTIFICATE REGISTRAR APPOINTED BY
                           IT) AND THE DEPOSITOR, AND (B) THE TRUSTEE (OR ANY

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<PAGE>

                           CERTIFICATE REGISTRAR APPOINTED BY IT) SHALL REQUIRE
                           A WRITTEN OPINION OF COUNSEL (WHICH SHALL NOT BE AT
                           THE EXPENSE OF THE TRUSTEE) SATISFACTORY TO THE
                           TRUSTEE (OR ANY CERTIFICATE REGISTRAR APPOINTED BY
                           IT) AND THE DEPOSITOR TO THE EFFECT THAT SUCH
                           TRANSFER WILL NOT VIOLATE THE SECURITIES ACT OR ANY
                           APPLICABLE STATE SECURITIES LAWS,

                  (3)      AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM
                           THIS CERTIFICATE OR AN INTEREST HEREIN IS TRANSFERRED
                           A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND,

                  (4)      ACKNOWLEDGES THAT ANY ATTEMPTED TRANSFER IN
                           CONTRAVENTION OF THE IMMEDIATELY PRECEDING
                           RESTRICTIONS WILL BE VOID AB INITIO AND THE PURPORTED
                           TRANSFEROR WILL CONTINUE TO BE TREATED AS THE OWNER
                           OF THIS CERTIFICATE FOR ALL PURPOSES.

                  AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION" AND "UNITED
                  STATES" HAVE THE MEANINGS GIVEN TO THEM BY RULE 902 OF
                  REGULATION S UNDER THE SECURITIES ACT. THE POOLING AND
                  SERVICING AGREEMENT UNDER WHICH THIS CERTIFICATE WAS ISSUED
                  CONTAINS A PROVISION REQUIRING THE TRUSTEE (OR CERTIFICATE
                  REGISTRAR APPOINTED BY THE TRUSTEE) TO REFUSE TO REGISTER ANY
                  TRANSFER OF THIS OFFERED CERTIFICATE IN VIOLATION OF THE
                  FOREGOING."

                  (B) Each Global Certificate will bear a legend in
substantially the following form:

                  "UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
                  REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
                  CORPORATION ("DTC"), TO THE TRUSTEE, AS DEFINED HEREIN, OR ITS
                  AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND
                  ANY CERTIFICATE IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
                  SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
                  REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
                  OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
                  REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
                  HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
                  INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
                  INTEREST HEREIN."

                  (C) each Regulation S Temporary Global Certificate will bear a
legend in

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<PAGE>

substantially the following form:

                  "THIS REGULATION S TEMPORARY GLOBAL CERTIFICATE IS A
                  "TEMPORARY GLOBAL CERTIFICATE" FOR PURPOSES OF REGULATION S
                  UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
                  (THE "SECURITIES ACT"), WHICH IS EXCHANGEABLE FOR A PERMANENT
                  GLOBAL CERTIFICATE SUBJECT TO THE TERMS AND CONDITIONS SET
                  FORTH HEREIN."

                  (D) each Regulation S Permanent Global Certificate will bear a
         legend in substantially the following form:

                  "THIS REGULATION S PERMANENT GLOBAL CERTIFICATE IS A GLOBAL
                  CERTIFICATE WHICH IS EXCHANGEABLE FOR INTERESTS IN OTHER
                  GLOBAL CERTIFICATES AND DEFINITIVE CERTIFICATES SUBJECT TO THE
                  TERMS AND CONDITIONS SET FORTH HEREIN AND IN THE POOLING AND
                  SERVICING AGREEMENT (AS DEFINED HEREIN)."

                                   ARTICLE VI

                         THE DEPOSITOR AND THE SERVICER

         Section 6.1 LIABILITY OF THE DEPOSITOR AND THE SERVICER. The Depositor
and the Servicer shall each be liable in accordance herewith only to the extent
of the obligations specifically imposed by this Agreement and undertaken
hereunder by the Depositor and the Servicer herein.

         Section 6.2 MERGER OR CONSOLIDATION OF THE DEPOSITOR OR THE SERVICER.
Subject to the following paragraph, the Depositor and the Servicer each will
keep in full effect its existence, rights and franchises as corporations, each
under the laws of the jurisdiction of its incorporation, and will obtain and
preserve its qualification to do business as a foreign corporation in each
jurisdiction in which such qualification is or shall be necessary to protect the
validity and enforceability of this Agreement, the Certificates or any of the
Loans and to perform its respective duties under this Agreement.

         The Depositor or the Servicer may be merged or consolidated with or
into any Person, or transfer all or substantially all of its assets to any
Person, in which case any Person resulting from any merger or consolidation to
which the Depositor or Servicer shall be a party, or any Person succeeding to
the business of the Depositor or Servicer, shall be the successor of the
Depositor or Servicer hereunder, without the execution or filing of any paper or
any further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

         Section 6.3 LIMITATION ON LIABILITY OF THE SERVICER AND OTHERS. Neither
the Servicer nor

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any of the directors, officers, employees or agents of the Servicer shall be
under any liability to the Trust Fund or the Certificateholders for any action
taken or for refraining from the taking of any action in good faith pursuant to
this Agreement, or for errors in judgment; provided, however, that this
provision shall not protect any director, officer, employee or agent of the
Servicer against any liability which would otherwise be imposed by reason of
willful misfeasance, bad faith or gross negligence in the performance of duties
or by reason of reckless disregard of obligations and duties hereunder, nor
shall this provision protect the Servicer against any liability that would
otherwise be imposed by reason of negligence in the performance of duties
hereunder. The Servicer and any director, officer, employee or agent of the
Servicer may rely in good faith on any document of any kind prima facie properly
executed and submitted by any Person respecting any matters arising hereunder.
The Servicer and any director, officer, employee or agent of the Servicer shall
be indemnified by the Trust Fund and held harmless against any loss, liability
or expense incurred in connection with any legal action relating to this
Agreement or the Certificates, other than any loss, liability or expense, in the
case of the Servicer and any director, officer, employee or agent of the
Servicer, incurred by reason of willful misfeasance, bad faith or gross
negligence in the performance of duties hereunder or by reason of reckless
disregard of obligations and duties hereunder or, in the case of the Servicer,
as Servicer, incurred by reason of negligence in the performance of any duties
hereunder. The Servicer shall not be under any obligation to appear in,
prosecute or defend any legal action which is not incidental to its duties to
service the Loans in accordance with this Agreement and which in its opinion may
involve it in any expense or liability; provided, however, that the Servicer may
in its discretion undertake any such action which it may deem necessary or
desirable in respect of this Agreement and the rights and duties of the parties
hereto and the interests of the Certificateholders hereunder. In such event, the
legal expenses and costs of such action and any liability resulting therefrom
shall be expenses, costs and liabilities of the Trust Fund, and the Servicer
shall be entitled to be reimbursed therefor out of the Custodial Account for P&I
as provided by Section 3.3.

         Section 6.4 SERVICER NOT TO RESIGN. The Servicer shall not resign from
the obligations and duties hereby imposed on it, except upon determination that
its duties hereunder are no longer permissible under applicable law or are in
material conflict by reason of applicable law with any other activities carried
on by it, the other activities of the Servicer so causing such a conflict being
of a type and nature carried on by the Servicer at the date of this Agreement.
Any such determination permitting the resignation of the Servicer shall be
evidenced by an Opinion of Counsel to such effect delivered to the Trustee. The
Servicer shall notify each Rating Agency of any such resignation. No such
resignation shall become effective until a successor servicer shall have assumed
the Servicer's responsibilities and obligations in accordance with Section 7.5
hereof.

         Notwithstanding the limitations stated above, the Servicer may transfer
its obligations, duties and rights hereunder without the consent of the
Certificateholders, provided, that (i) the Servicer obtains the prior written
consent of each Rating Agency, (ii) the transferee is a FNMA- or FHLMC-approved
servicer having a net worth of not less than $15,000,000, (iii) the successor
servicer assumes all of the Servicer's responsibilities and obligations in
accordance with Section 7.5 hereof, and (iv) the then-current rating of the
Class A Certificates will not be reduced as a result of

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such transfer, and (v) the successor servicer has, in the reasonable opinion of
the Trustee, the qualifications, resources and experience to properly carry out,
observe and perform the duties, obligations and responsibilities of Servicer
hereunder; provided, that the foregoing clause (v) is intended solely for the
benefit of (and may be exercised or waived at the sole discretion of) the
Trustee, to enable the Trustee to assure itself that any successor Servicer has
such acceptable qualifications, resources and experience, and such clause (v) is
not intended to be for the benefit of, and shall not be relied upon or enforced
by, any Certificateholder, and provided, further, that any consent to such
transfer will not be unreasonably withheld by the Trustee.

                                   ARTICLE VII

                                     DEFAULT

         Section 7.1 EVENTS OF DEFAULT. In case one or more of the following
Events of Default by the Servicer shall occur and be continuing, that is to say:

                  (i) any failure by the Servicer to distribute or cause to be
         distributed to the Trustee or its delegate on the Withdrawal Date any
         payment required to be made to the Trustee under the terms of this
         Agreement;

                  (ii) any failure on the part of the Servicer duly to observe
         or perform in any material respect any other of the covenants or
         agreements on the part of the Servicer in the Certificates or in this
         Agreement which continues unremedied for a period of 60 days after the
         date on which written notice of such failure, requiring the same to be
         remedied, shall have been given to the Servicer by the Trustee, or to
         the Servicer and the Trustee by the Holders of Certificates evidencing,
         in aggregate, not less than 25% of the Trust Fund or 51% of the
         aggregate Percentage Interests of any Class of Certificates;

                  (iii) a decree or order of a court or agency or supervisory
         authority having jurisdiction in the premises for the appointment of a
         conservator or receiver or liquidator in any insolvency, readjustment
         of debt, marshaling of assets and liabilities or similar proceedings,
         or for the winding-up or liquidation of its affairs, shall have been
         entered against the Servicer and such decree or order shall have
         remained in force undischarged or unstayed for a period of 60 days;

                  (iv) the Servicer shall consent to the appointment of a
         conservator or receiver or liquidator or liquidating committee in any
         insolvency, readjustment of debt marshaling of assets and liabilities,
         voluntary liquidation or similar proceedings of or relating to the
         Servicer or of or relating to all or substantially all of its property;

                  (v) the Servicer shall admit in writing its inability to pay
         its debts generally as they become due, file a petition to take
         advantage of any applicable insolvency or

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         reorganization statute, make an assignment for the benefit of its
         creditors or voluntarily suspend payment of its obligations; or

                  (vi) any failure of the Servicer to make any Advance required
         to be made from its own funds pursuant to Section 4.3 which continues
         unremedied for a period of one Business Day after the date upon which
         such Advance was to have been made;

then, if an Event of Default described in clauses (i)-(v) of this Section 7.1
shall occur, and in each and every such case, subject to applicable law, so long
as an Event of Default shall not have been remedied, either the Trustee or the
Holders of Certificates evidencing, in aggregate, not less than 25% of the Trust
Fund or 51% of the aggregate Percentage Interests of any Class of Certificates
by notice in writing to the Servicer (and to the Trustee if given by the
Certificateholders) may terminate all of the rights and obligations of the
Servicer under this Agreement, but without prejudice to any rights it may have
to reimbursement of expenses, Advances and other advances of its own funds as
Servicer to the extent permitted by this Agreement, other than the Depositor's
(or its successors') obligation to repurchase any Loans pursuant to Section 2.2
or 2.3 shall survive any such termination. If an Event of Default described in
clause (vi) hereof shall occur, the Trustee shall, by notice in writing to the
Servicer, which shall be telecopied to the Servicer, immediately terminate all
of the rights and obligations of the Servicer, under this Agreement and in and
to the Loans and the proceeds thereof. On or after the receipt by the Servicer
of such written notice, all authority and power of the Servicer under this
Agreement, whether with respect to the Certificates or the Loans or otherwise,
shall pass to and be vested in the Trustee pursuant to and under this Section
7.1 (subject to the provisions of Section 7.5); and, without limitation, the
Trustee is hereby authorized and empowered to execute and deliver, on behalf of
the Servicer, as attorney-in-fact or otherwise, any and all documents and other
instruments, and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement or assignment of the Loans and related
documents or otherwise at the expense of the Servicer. The Servicer agrees to
cooperate with the Trustee in effecting the termination of the Servicer's
responsibilities and rights hereunder and shall promptly provide the Trustee all
documents and records whether in written or electronic form reasonably requested
by it to enable it to assume the Servicer's functions hereunder and shall
promptly also transfer to the Trustee of this Agreement all amounts which then
have been or should have been deposited in the Custodial Account for P&I by the
Servicer or which are thereafter received with respect to the Loans as well as
any escrowed funds held by it or in connection with its servicing activities
hereunder. The Servicer and the Trustee shall give each Rating Agency notice of
any Event of Default.

         Section 7.2 OTHER REMEDIES OF TRUSTEE. During the continuance of any
Event of Default, so long as such Event of Default shall not have been remedied,
the Trustee, in addition to the rights specified in Section 7.1, shall have the
right, in its own name as trustee of an express trust, to take all actions now
or hereafter existing at law, in equity or by statute to enforce its rights and
remedies, and to protect the interests, and enforce the rights and remedies, of
the Certificateholders (including the institution and prosecution of all
judicial, administrative and other proceedings and the filing of proofs of claim
and debt in connection therewith). Except as otherwise expressly provided in
this

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Agreement, no remedy provided for by this Agreement shall be exclusive of any
other remedy, and each and every remedy shall be cumulative and in addition to
any other remedy and no delay or omission to exercise any right or remedy shall
impair any such right or remedy or shall be deemed to be a waiver of any Event
of Default.

         Section 7.3 DIRECTIONS BY CERTIFICATEHOLDERS AND DUTIES OF TRUSTEE
DURING EVENT OF DEFAULT. During the continuance of any Event of Default, Holders
of Certificates evidencing, in aggregate, not less than 25% of the Trust Fund or
51% of the aggregate Percentage Interests of any Class of Certificates may
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the
Trustee under this Agreement; provided, however, that the Trustee shall be under
no obligation to pursue any such remedy, or to exercise any of the trusts or
powers vested in it by this Agreement (including, without limitation, (i) the
conducting or defending of any administrative action or litigation hereunder or
in relation hereto and (ii) the terminating of the Servicer or any successor
servicer from its rights and duties as servicer hereunder) at the request, order
or direction of any of the Certificateholders, unless such Certificateholders
shall have offered to the Trustee reasonable security or indemnity against the
costs, expenses and liabilities which may be incurred therein or thereby; and,
provided, further, that, subject to the provisions of Section 8.1, the Trustee
shall have the right to decline to follow any such direction if the Trustee, in
accordance with an Opinion of Counsel, determines that the action or proceeding
so directed may not lawfully be taken or if the Trustee in good faith determines
that the action or proceeding so directed would involve it in personal liability
or be unjustly prejudicial to the non-assenting Certificateholders or if the
Trustee has received contrary directions pursuant to this Section 7.3.

         Section 7.4 ACTION UPON CERTAIN FAILURES OF SERVICER AND UPON EVENT OF
DEFAULT. In the event that the Trustee shall have knowledge of any failure of
the Servicer specified in Section 7.1(i) or (ii) which would become an Event of
Default upon the Servicer's failure to remedy the same after notice, the Trustee
shall give notice thereof to the Servicer. In the event that the Trustee shall
have knowledge of an Event of Default, the Trustee shall give prompt written
notice thereof to the Certificateholders and to each Rating Agency. For all
purposes of this Agreement, in the absence of actual knowledge by a Responsible
Officer of the Trustee, the Trustee shall not be deemed to have knowledge of any
failure of the Servicer as specified in Section 7.1(i) and (ii) or any Event of
Default unless notified thereof in writing by the Servicer or by a
Certificateholder.

         Section 7.5 APPOINTMENT OF SUCCESSOR SERVICER.

         (a) When the Servicer receives a notice of termination pursuant to
Section 7.1 or the Trustee receives the resignation of the Servicer evidenced by
an Opinion of Counsel pursuant to Section 6.4, the Trustee shall become the
successor in all respects to the Servicer in its capacity as Servicer under this
Agreement and the transactions set forth or provided for herein, provided,
however, that the Trustee's obligation to make any Advances shall be no greater
than set forth in Section 4.3 of this Agreement, and the Trustee shall have all
the rights and powers and be subject to all the responsibilities, duties and
liabilities relating thereto placed on the Servicer by the terms

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and provisions hereof and in its capacity as such successor shall have the same
limitation of liability herein granted to the Servicer and provided, further,
that the Trustee shall not be required to make an Advance from its own funds if
such Advance would be prohibited by law. As compensation therefor, the Trustee
shall be entitled to receive monthly an amount not to exceed the Servicing Fee
as agreed by the Trustee and the Servicer, together with such other servicing
compensation in the form of assumption fees, late charges, prepayment fees or
otherwise provided in Section 3.9. If the agreed amount is less than the
Servicing Fee, the excess shall be paid to the Class R Certificateholder. If the
Trustee and the Servicer shall not agree on the amount of such compensation, the
Trustee shall solicit bids for a successor servicer as described in Section
7.5(b), provided, however, if no successor servicer is obtained through the
bidding process, the Trustee may act as such, or may pursuant to Section 7.5(b)
appoint a successor servicer to act as such, for the Servicing Fee together with
such other servicing compensation as provided in Section 3.9. In no event shall
the Trustee's assumption of or succession to the obligations of the Servicer
make the Trustee liable for any actions or omissions of the Servicer in its
capacity as Servicer.

         (b) Notwithstanding the above, the Trustee may and shall, if it is
unable (or unwilling due to disagreement on compensation as provided in Section
7.5 (a)) to act as Servicer, appoint, or petition a court of competent
jurisdiction to appoint, any established housing and home finance institution,
bank or mortgage servicing institution which is an approved FNMA or FHLMC
servicer having a net worth of not less than $15,000,000 and meeting such other
standards as are set forth in Section 6.4 hereof for a successor to the Servicer
hereunder in the assumption of all or any part of the responsibilities, duties
or liabilities of the Servicer hereunder (except the repurchase obligations set
forth in Sections 2.2 and 2.3 hereof, which shall remain obligations of the
Depositor); provided, however, that until such appointment and assumption, the
Trustee will continue to perform the servicing obligations pursuant to this
Agreement (and until such time shall be entitled to receive the Servicing Fees
pursuant to Section 3.9); provided, further, that prior to the appointment of
any successor servicer, the Rating Agencies confirm that the appointment of such
successor servicer would not result in the downgrade of the Rating assigned to
any Class of Certificates. The compensation of any successor servicer so
appointed shall be equal to the Servicing Fees specified in Section 3.9 together
with such other compensation as is provided in said Section 3.9. In the event
the Trustee is required to solicit bids as provided above, the Trustee shall
solicit, by public announcement, bids from housing and home finance
institutions, banks and mortgage servicing institutions acceptable to the
Trustee and meeting the qualifications set forth above in this Section 7.5(b)
for the purchase of the servicing functions. Such public announcement shall
specify that the successor servicer shall be entitled to the full amount of the
Servicing Fee on the aggregate unpaid principal balance of the Loans as
servicing compensation for servicing the Loans, together with the other
servicing compensation in the form of assumption fees, late payment charges,
prepayment fees or otherwise as provided in Section 3.9. Within 45 days after
any such public announcement, the Trustee shall negotiate and effect the sale,
transfer and assignment of the servicing rights and responsibilities hereunder
(except the repurchase obligations set forth in Sections 2.2 and 2.3 hereof,
which shall remain obligations of the Depositor) to the qualified party
submitting the highest qualifying bid. The Trustee shall deduct all costs and
expenses of any public announcement and of any sale, transfer and assignment of
the servicing rights and responsibilities hereunder from any sum

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received by the Trustee from the successor to the Servicer in respect of such
sale, transfer and assignment. After such deductions, the remainder of such sum
shall be paid by the Trustee to the Class R Certificateholder at the time of
such sale, transfer and assignment to the Servicer's successor.

         (c) The Servicer agrees to cooperate with the Trustee and any successor
servicer in effecting the termination of the Servicer's servicing
responsibilities and rights hereunder and shall promptly provide the Trustee or
such successor servicer, as applicable, all documents and records reasonably
requested by it to enable it to assume the Servicer's functions hereunder and
shall promptly also transfer to the Trustee or such successor servicer, as
applicable, all amounts which then have been or should have been deposited in
the Custodial Account for P&I by the Servicer or which are thereafter received
with respect to the Loans. Neither the Trustee nor any other successor servicer
shall be deemed to be in default hereunder by reason of any failure to make, or
any delay in making, any distribution hereunder or any portion thereof caused by
the failure of the Servicer to deliver, or any delay in delivering, cash,
documents or records to it.

         Section 7.6 NOTIFICATION TO CERTIFICATEHOLDERS. Upon any termination of
the Servicer or appointment of a successor to the Servicer, in each case as
provided herein, the Trustee shall as soon as practicable give written notice
thereof to Certificateholders at their respective addresses appearing in the
Certificate Register and each Rating Agency.

                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

         Section 8.1 DUTIES OF TRUSTEE. The Trustee, prior to the occurrence of
an Event of Default and after the curing of all Events of Default which may have
occurred, undertakes to perform such duties and only such duties as are
specifically set forth in this Agreement. In case an Event of Default has
occurred (which has not been cured), the Trustee, subject to the provisions of
Sections 7.1, 7.3, 7.4 and 7.5, shall exercise such of the rights and powers
vested in it by this Agreement, and use the same degree of care and skill in
their exercise as a prudent person would exercise or use under the circumstances
in the conduct of such person's own affairs. Any permissive right of the Trustee
enumerated in this Agreement shall not be construed as a duty.

         Subject to Sections 8.2(i), 8.3 and 8.4, the Trustee, upon receipt of
all resolutions, certificates, statements, opinions, reports, documents, orders
or other instruments furnished to the Trustee which are specifically required to
be furnished pursuant to any provision of this Agreement, shall examine them to
determine whether they are in the form required by this Agreement; provided,
however, that the Trustee shall not be responsible for the accuracy or content
of any resolution, certificate, statement, opinion, report, document, order or
other instrument furnished by any party hereunder. If any such instrument is
found not to conform to the requirements of this Agreement in a material manner,
the Trustee shall take action as it deems appropriate to have the instrument

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corrected, and if the instrument is not corrected to the Trustee's reasonable
satisfaction, the Trustee will provide notice thereof to the Certificateholders
and each Rating Agency.

         No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act or its own willful misconduct or in the event the Trustee is acting as
successor servicer pursuant to Section 7.5, to the standard imposed on the
Servicer pursuant to Section 6.3 of this Agreement; provided, however, that:

                  (i) Prior to the occurrence of an Event of Default and after
         the curing of all such Events of Default which may have occurred, the
         duties and obligations of the Trustee shall be determined solely by the
         express provisions of this Agreement, the Trustee shall not be liable
         except for the performance of such duties and obligations as are
         specifically set forth in this Agreement, no implied covenants or
         obligations shall be read into this Agreement against the Trustee and,
         in the absence of bad faith on the part of the Trustee, the Trustee may
         conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon any certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Agreement;

                  (ii) The Trustee shall not be personally liable with respect
         to any action taken, suffered or omitted to be taken by it in good
         faith in accordance with this Agreement or at the direction of
         Certificateholders holding Certificates which have an aggregate
         Certificate Principal Balance aggregating not less than 25% of the
         aggregate Certificate Principal Balance of all Certificates relating to
         the time, method and place of conducting any proceeding for any remedy
         available to the Trustee, or exercising or omitting to exercise any
         trust or power conferred upon the Trustee, under this Agreement;

                  (iii) The Trustee shall not be liable in its individual
         capacity for any error of judgment made in good faith by any
         Responsible Officer, unless it shall be proved that the Trustee or such
         Responsible Officer was negligent in ascertaining the pertinent facts;

                  (iv) The Trustee shall not be liable for any act or omission
         of the Depositor or the Servicer (except for its own acts or omissions
         as Servicer hereunder) or for any but its own acts or omissions;

                  (v) The Trustee shall not be deemed to take notice or be
         deemed to have knowledge of any matter, including without limitation
         any default or Event of Default, unless written notice thereof,
         referring to the Certificates, the Depositor, the Trust Fund or this
         Agreement is received by a Responsible Officer of the Trustee at its
         Corporate Trust Office; and

                  (vi) Subject to the other provisions of this Agreement and
         without limiting the generality of this Section 8.1, the Trustee shall
         have no duty (A) to see to any recording, filing, or depositing of this
         Agreement or any agreement referred to herein or any financing

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         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, (B) to
         see any insurance, (C) 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 Trust Fund other than from funds available in the Certificate
         Account, and (D) to confirm or verify the contents of any reports or
         certificates of the Servicer delivered to the Trustee pursuant to this
         Agreement believed by the Trustee to be genuine and to have been signed
         or presented by the proper party or parties.

         None of the provisions contained in this Agreement shall require the
Trustee to expend or risk its own funds or otherwise incur financial liability
in the performance of any of its duties as Trustee hereunder or in the exercise
of any of its rights or powers if there is reasonable ground for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it, and none of the provisions contained in this
Agreement shall in any event require the Trustee to perform, or be responsible
for the manner of performance of, any of the obligations of the Servicer under
this Agreement except during such time, if any, as the Trustee shall be the
successor to, and be vested with the rights, duties, powers and privileges of,
the Servicer in accordance with the terms of this Agreement.

         Section 8.2 CERTAIN MATTERS AFFECTING TRUSTEE. Except as otherwise
provided in Section 8.1:

                  (i) Before acting or refraining from acting the Trustee may
         request or require an Officer's Certificate; the Trustee may rely and
         shall be protected in acting or refraining from acting upon any
         resolution, Officer's Certificate, opinion of counsel, certificate of
         auditors or any other certificate, statement, instrument, opinion,
         report, notice, request, consent, order, appraisal, bond or other paper
         or document believed by it to be genuine and to have been signed or
         presented by the proper party or parties;

                  (ii) The Trustee may consult with counsel, and any advice or
         Opinion of Counsel shall be full and complete authorization and
         protection in respect of any action taken or suffered or omitted by it
         hereunder in good faith and in accordance with such advice or Opinion
         of Counsel;

                  (iii) The Trustee shall not be personally liable for any
         action taken, suffered or omitted by it in good faith and believed by
         it to be authorized or within the discretion or rights or powers
         conferred upon it by this Agreement;

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

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                  (v) The Trustee shall not be required to give any bond or
         surety in respect of the execution of the Trust Fund created hereby or
         the powers granted hereunder; and

                  (vi) The Trustee may execute any of the trusts or powers
         hereunder or perform any duties hereunder either directly or by or
         through agents, attorneys or custodians, and the Trustee shall not be
         responsible for any misconduct or negligence on the part of any such
         agent, attorney or custodian appointed by the Trustee with care. Any
         such agents, attorneys or custodians shall be entitled to all
         indemnities and protection afforded to the Trustee. Any designee of the
         Trustee shall be considered its "agent" hereunder whether performing it
         as an independent contractor or otherwise.

         Section 8.3 TRUSTEE NOT REQUIRED TO MAKE INVESTIGATION. Prior to the
occurrence of an Event of Default hereunder and after the curing of all Events
of Default which may have occurred, the Trustee shall not be bound to ascertain
or inquire as to the performance or observance of any of the terms, conditions,
covenants or agreements herein or to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval, bond, Mortgage, Mortgage Note
or other paper or document, unless requested in writing so to do by Holders of
Certificates having a Percentage Interest not less than 51% of the Trust Fund;
provided, however, that if the payment within a reasonable time to the Trustee
of the costs, expenses or liabilities likely to be incurred by it in the making
of such investigation is, in the opinion of the Trustee, not reasonably assured
to the Trustee by the security afforded to it by the terms of this Agreement,
the Trustee may require reasonable indemnity against such expense or liability
as a condition to such proceeding. The reasonable expense of every such
examination shall be paid by the Depositor or, if paid by the Trustee, shall be
repaid by the Depositor upon demand.

         Section 8.4 TRUSTEE NOT LIABLE FOR CERTIFICATES OR LOANS. The recitals
contained herein and in the Certificates (other than the certificate of
authentication on the Certificates) shall be taken as the statements of the
Depositor, and the Trustee assumes no responsibility for the correctness of the
same. The Trustee makes no representations or warranties as to the validity or
sufficiency of this Agreement or of the Certificates or of any Loan or related
document. The Trustee shall not be accountable for the use or application by the
Depositor of any of the Certificates or of the proceeds of such Certificates or
for the use or application of any funds paid to the Servicer in respect of the
Loans or deposited in or withdrawn from the Custodial Account for P&I by the
Servicer or for investment of any such amounts. The Trustee shall not be
responsible for the legality or validity of this Agreement or the validity,
priority, perfection or sufficiency of the security for the Certificates issued
or intended to be issued hereunder. The Trustee shall have no responsibility for
filing any financing or continuation statement in any public office at any time
or to otherwise perfect or maintain the perfection of any security interest or
lien granted to it hereunder or to record this Agreement.

         Neither the Trustee nor any of the directors, officers, employees or
agents of the Trustee shall be under any liability to the Trust Fund or the
Certificateholders for any action taken or for

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refraining from the taking of any action in good faith pursuant to this
Agreement, or for errors in judgment while an Event of Default exists; provided,
however, that this provision shall not protect the Trustee or any such person
against any liability which would otherwise be imposed by reason of willful
misfeasance, bad faith or negligence in the performance of duties. The Trustee
and any director, officer, employee or agent of the Trustee shall be indemnified
by the Depositor and held harmless against any loss, liability or expense,
including reasonable attorneys' fees, incurred in connection with or related to
the Trustee's performance of its powers and duties under this Agreement
(including, without limitation, performance under Section 8.1 hereof), or any
action relating to this Agreement or the Certificates, or the performance of the
Trustee's duties hereunder, other than any loss, liability or expense incurred
by any such Person by reason of willful misfeasance, bad faith or negligence in
the performance of duties. Any such losses, liabilities and expenses resulting
therefrom shall be losses, liabilities and expenses of the Depositor. The
indemnification provided hereunder shall survive termination of this Agreement.

         Section 8.5 TRUSTEE MAY OWN CERTIFICATES. The Trustee and any Affiliate
or agent of the Trustee in its individual or any other capacity may become the
owner of or a pledgee of the Certificates with the same rights it would have if
it were not Trustee or such agent, and may otherwise deal with the parties
hereto.

         Section 8.6 SERVICER TO PAY TRUSTEE'S FEES AND EXPENSES. The Servicer
covenants and agrees to pay to the Trustee monthly (or as otherwise agreed), and
the Trustee shall be entitled to receive, reasonable compensation (which shall
not be limited by any provision of law in regard to the compensation of a
trustee of an express trust) for all services rendered by it in the execution of
the trusts hereby created and in the exercise and performance of any of the
powers and duties hereunder of the Trustee, and the Servicer shall pay or
reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances, including reasonable attorneys' fees, incurred or
made by the Trustee in accordance with any of the provisions of this Agreement
(including the reasonable compensation and the expenses and disbursements of its
counsel and of all persons not regularly in its employ) except any such expense,
disbursement or advance as may arise from its negligence or bad faith. The Tax
Matters Person (or Person acting as its attorney-in-fact or agent) shall
indemnify the Trustee for any liability of or assessment against the Trustee
resulting from any error in any tax or tax information returns prepared or
caused to be prepared by such Person. In the event that (i) the Servicer does
not pay to the Trustee any compensation owed to the Trustee pursuant to this
Agreement or (ii) the Trustee is not reimbursed for any expense, disbursement or
advance incurred or made by the Trustee pursuant to this Agreement, the Trustee
shall be entitled to withdraw and retain such amount from the Certificate
Account. In the event the Trustee incurs expenses or renders services in any
proceedings which result from an Event of Default under Section 7.1, subsections
(iii), (iv) or (v) of this Agreement, or from any default which, with the
passage of time, would become an Event of Default, the expenses so incurred and
compensation for services so rendered are intended to constitute expenses of
administration under the United States Bankruptcy Code or equivalent law.

         Section 8.7 ELIGIBILITY REQUIREMENTS FOR TRUSTEE. The Trustee hereunder
shall at all times

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be a corporation or association organized and doing business under the laws of
any state of the United States of America, authorized under such laws to
exercise corporate trust powers, having a combined capital and surplus of at
least $50,000,000 and subject to supervision or examination by federal or state
authority. The Trustee shall not control the Servicer nor be a parent of or a
subsidiary of the Servicer. If such corporation or association publishes reports
of condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section 8.7 the combined capital and surplus of such corporation or association
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 8.7, the
Trustee shall resign immediately in the manner and with the effect specified in
Section 8.8.

         Section 8.8 RESIGNATION AND REMOVAL OF TRUSTEE. The Trustee may at any
time resign and be discharged from the trusts hereby created by giving written
notice of resignation to the Servicer. Such notice shall also be furnished to
each Rating Agency. Upon receiving such notice of resignation, the Servicer
shall promptly appoint a successor trustee by written instrument, in duplicate,
one copy of which instrument shall be delivered to the resigning Trustee and one
copy to the successor trustee. If no successor trustee shall have been so
appointed and have accepted appointment within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee at the expense of the
Servicer.

         If at any time the Trustee shall cease to be eligible in accordance
with the provisions of Section 8.7 and shall fail to resign after written
request for the Trustee's resignation by the Servicer, or if at any time the
Trustee shall become incapable of acting, or shall be adjudged bankrupt or
insolvent, or a receiver of the Trustee or of its property shall be appointed,
or any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then, with or without cause, the Servicer may remove the Trustee
and appoint a successor trustee by written instrument, in duplicate, one copy of
which instrument shall be delivered to the Trustee so removed and one copy to
the successor trustee.

         The Holders of Certificates having a Percentage Interest aggregating
not less than 51% of the aggregate Denomination of all Certificates may at any
time remove the Trustee and appoint a successor trustee by written instrument or
instruments, in triplicate, signed by such holders or their attorneys-in-fact
duly authorized, one complete set of which instrument or instruments shall be
delivered to the Servicer, one complete set to the Trustee so removed and one
complete set to the successor trustee so appointed.

         Any resignation or removal of the Trustee and appointment of successor
trustee pursuant to any of the provisions of this Section 8.8 shall become
effective only upon acceptance of appointment by the successor trustee as
provided in Section 8.9.

         Section 8.9 SUCCESSOR TRUSTEE. Any successor trustee appointed as
provided in Section

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8.8 shall execute, acknowledge and deliver to the Servicer and to its
predecessor trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor trustee shall become
effective, and such successor trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally
named as trustee herein. The predecessor trustee shall deliver or cause to be
delivered to the successor trustee all Mortgage Files and related documents and
statements held by it hereunder (other than any Mortgage Files at the time held
by the Custodian, if it shall agree to become the agent of any successor trustee
hereunder), and the Servicer and the predecessor trustee shall execute and
deliver such instruments and do such other things as may reasonably be required
for more fully and certainly vesting and confirming in the successor trustee all
such rights, powers, duties and obligations.

         No successor trustee shall accept appointment as provided in this
Section 8.9 unless at the time of such acceptance such successor trustee shall
be eligible under the provisions of Section 8.7.

         Upon acceptance of appointment by a successor trustee as provided in
this Section 8.9, the Servicer shall mail notice of the succession of such
trustee hereunder to all holders of Certificates at their addresses as shown in
the Certificate Register and to each Rating Agency. If the Servicer fails to
mail such notice within ten days after acceptance of appointment by the
successor trustee, the successor trustee shall cause such notice to be mailed at
the expense of the Servicer.

         Section 8.10 MERGER OR CONSOLIDATION OF TRUSTEE. Any Person into which
the Trustee may be merged or converted or with which it may be consolidated, or
any Person resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any Person succeeding to all or substantially all
of the corporate trust business of the Trustee, shall be the successor of the
Trustee hereunder, provided, that such Person shall be eligible under the
provisions of Section 8.7, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

         Section 8.11 APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE.
Notwithstanding any other provisions hereof, at any time, for the purpose of
meeting any legal requirements of any jurisdiction in which any part of the
Trust Fund or property securing the same may at the time be located, the
Servicer and the Trustee acting jointly shall have the power and shall execute
and deliver all instruments to appoint one or more Persons approved by the
Trustee to act as co-trustee or co-trustees, jointly with the Trustee, or
separate trustee or separate trustees, of all or any part of the Trust Fund, and
to vest in such Person or Persons, in such capacity, such title to the Trust
Fund, or any part thereof, and, subject to the other provisions of this Section
8.11, such powers, duties, obligations, rights and trusts as the Servicer and
the Trustee may consider necessary or desirable. If the Servicer shall not have
joined in such appointment within 15 days after the receipt by it of a request
so to do, or in case an Event of Default shall have occurred and be continuing,
the Trustee alone shall have the power to make such appointment. Each co-trustee
and separate trustee hereunder shall not be required to meet the terms of
eligibility as a successor trustee under Section 8.7 hereunder and no notice to
holders of Certificates of the appointment of co-trustee(s) or separate

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trustee(s) shall be required under Section 8.9 hereof.

         In the case of any appointment of a co-trustee or separate trustee
pursuant to this Section 8.11, all rights, powers, duties and obligations
conferred or imposed upon the Trustee shall be conferred or imposed upon and
exercised or performed by the Trustee and such separate trustee or co-trustee
jointly, except to the extent that under any law of any jurisdiction in which
any particular act or acts are to be performed (whether as Trustee hereunder or
as successor to the Servicer hereunder), the 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 Fund or a
portion thereof in any such jurisdiction) shall be exercised and performed by
such separate trustee or co-trustee at the direction of the Trustee.

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

         Any separate trustee or co-trustee may, at any time, constitute the
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 respect of this
Agreement on its behalf and in its name. The Trustee shall not be responsible
for any action or inaction of any such separate trustee or co-trustee. 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 Trustee, to the extent permitted by law, without
the appointment of a new or successor trustee.

         The Trustee may appoint one or more Eligible Institutions to act as its
agent or agents to perform any or all of its duties and obligations under this
Agreement. Each such agent shall be subject to all of the provisions of this
Agreement, specifically including every provision of this Agreement relating to
the conduct of, affecting the liability of, or affording protection to, the
Trustee.

         Section 8.12 APPOINTMENT OF CUSTODIANS. The Trustee may, with the
consent of the Servicer, appoint one or more Custodians, not affiliated with the
Depositor, to review, pursuant to Section 2.2 hereof, and hold all or a portion
of the Mortgage Files as agent for the Trustee PROVIDED, HOWEVER, that such
appointed Custodian may be LaSalle Bank National Association or Standard Federal
Bank, N.A. Any Custodian appointed shall be (i) LaSalle Bank National
Association or (ii) Standard Federal Bank, N.A., or (iii) (a) an institution
subject to supervision by federal or state authority, (b) shall have combined
capital and surplus of at least $50,000,000 and (c) shall be qualified to do
business in the jurisdiction in which it holds any Mortgage File.

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<PAGE>

         Section  8.13     AUTHENTICATING AGENT.

         (a) The Trustee may appoint from time to time an authenticating agent
(the "Authenticating Agent") which shall be authorized to act on behalf of the
Trustee in authenticating Certificates. Wherever reference is made in this
Agreement to the authentication of Certificates by the Trustee or the Trustee's
certificate of authentication, such reference shall be deemed to include
authentication on behalf of the Trustee by the Authenticating Agent and a
certificate of authentication executed on behalf of the Trustee by the
Authenticating Agent. Any successor Authenticating Agent must be acceptable to
the Servicer and have a principal office and place of business in New York, New
York or Chicago, Illinois, have a combined capital and surplus of at least
$50,000,000, and be authorized to do a trust business and subject to supervision
or examination by federal or state authorities.

         (b) Any corporation into which the Authenticating Agent may be merged
or converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Authenticating Agent
shall be a party, or any corporation succeeding to all or substantially all of
the corporate agency business of the Authenticating Agent, shall continue to be
the Authenticating Agent without the execution or filing of any paper or any
further act on the part of the Trustee or the Authenticating Agent.

         (c) The Authenticating Agent may at any time resign by giving at least
30 days' advance written notice of resignation to the Trustee and to the
Servicer. The Trustee may at any time terminate the agency of the Authenticating
Agent by giving written notice of termination to the Authenticating Agent and to
the Servicer. Upon receiving a notice of resignation or upon such a termination,
or in case at any time the Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section 8.13, the Trustee promptly shall
appoint a successor Authenticating Agent, shall give written notice of such
appointment to the Servicer and shall mail notice of such appointment to all
Certificateholders. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers, duties
and responsibilities of its predecessor hereunder, with like effect as if
originally named as Authenticating Agent herein. No successor Authenticating
Agent shall be appointed unless eligible under the provisions of this Section
8.13.

         (d) The Authenticating Agent shall have no responsibility or liability
for any action taken by it as such at the direction of the Trustee. Any
reasonable compensation paid to the Authenticating Agent shall be a reimbursable
expense under Section 8.6.

         Section 8.14 BLOOMBERG. As soon as practicable after the Closing Date,
the Trustee or the Certificate Administrator, if any, will arrange with
Bloomberg to have the Depositor set up on Bloomberg to provide the information
set forth on Exhibit Q (the "Data") with respect to the Loans on a monthly basis
in a format acceptable to Bloomberg and acceptable to the Underwriters. During
the term of this Agreement, the Trustee will provide updated Data to Bloomberg
on or before each

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<PAGE>

Distribution Date.

         Section 8.15 REPORTS TO SECURITIES AND EXCHANGE COMMISSION. Unless
otherwise directed by the Depositor in writing, the Certificate Administrator or
the Trustee, as applicable, shall prepare, sign and file with the Securities and
Exchange Commission, on behalf of the Depositor, (i) no later than ten days
after each Distribution Date, the Certificateholders' Report on the appropriate
form and in the appropriate medium authorized or prescribed therefor under the
Exchange Act, (ii) no later than March 25 of each calendar year, an annual
report meeting the requirements of the Exchange Act on the appropriate form and
in the appropriate medium authorized or prescribed therefor under the Exchange
Act. The Trustee or the Certificate Administrator, as applicable, shall promptly
forward copies of all filings made pursuant to this Section 8.15 to the
Depositor.

         Section 8.16 CALCULATION OF LIBOR. Until the Certificate Principal
Balance of each of the Adjustable Rate Certificates has been reduced to zero,
LIBOR for the initial Interest Accrual Period shall be 1.84%, and for any
Interest Accrual Period thereafter, the Trustee, if any, shall establish LIBOR
on each LIBOR Determination Date as follows:

         (a) If on such LIBOR Determination Date a rate for United States dollar
deposits for one month appears on the Dow Jones Telerate System, page 3750,
LIBOR for the next Interest Accrual Period shall be equal to such rate as of
11:00 a.m., London time;

         (b) If such rate does not appear on such page (or such other page as
may replace that page on that service, or if such service is no longer offered,
such other service for displaying LIBOR or comparable rates as may be selected
by the Trustee, if any, after consultation with the Servicer), the rate shall be
determined as follows:

                  (i) The Trustee on the LIBOR Determination Date will request
         the principal London offices of each of four major reference banks in
         the London interbank market, as selected by the Trustee, to provide the
         Trustee with its offered quotation for deposits in United States
         dollars for the upcoming one-month period, commencing on the second
         LIBOR Business Day immediately following such LIBOR Determination Date,
         to prime banks in the London interbank market at approximately 11:00
         a.m. London time on such LIBOR Determination Date and in a principal
         amount that is representative for a single transaction in United States
         dollars in such market at such time. If at least two such quotations
         are provided, LIBOR determined on such LIBOR Determination Date will be
         the arithmetic mean of such quotations.

                  (ii) If fewer than two quotations are provided, LIBOR
         determined on such LIBOR Determination Date will be the arithmetic mean
         of the rates quoted at approximately 11:00 a.m. in New York City on
         such LIBOR Determination Date by three major banks in New York City
         selected by the Trustee for one-month United States dollar loans to
         leading European banks, in a principal amount that is representative
         for a single transaction in United States dollars in such market at
         such time; PROVIDED, HOWEVER, that if the banks so selected

                                      113
<PAGE>

         by the Trustee are not quoting as mentioned in this sentence, LIBOR
         determined on such LIBOR Determination Date will continue to be LIBOR
         as then currently in effect on such LIBOR Determination Date.

         (c) The establishment of LIBOR on each LIBOR Determination Date by the
Trustee, if any, and the Trustee's calculation of the rate of interest
applicable to the Adjustable Rate Certificates for the related Interest Accrual
Period shall (in the absence of manifest error) be final and binding.

                                   ARTICLE IX

                                   TERMINATION

         Section 9.1 TERMINATION UPON PURCHASE BY THE SERVICER OR LIQUIDATION OF
ALL LOANS. The respective obligations and responsibilities of the Servicer and
the Trustee created hereby (other than the obligation to make payments to
Certificateholders as hereafter set forth in this Section 9.1 and obligations to
the Trustee in Sections 8.4 and 8.6) shall terminate upon the earlier of (i) the
later of the final payment or other liquidation (or any Advance with respect
thereto) of the last Loan remaining in the Trust Fund and the disposition of all
property acquired in respect of any Loan or (ii) the purchase by the Servicer of
all Loans at a price equal to the sum of (a) the principal balance of each Loan
plus accrued interest thereon at the applicable Mortgage Interest Rate to the
next scheduled Installment Due Date and (b) the fair market value of all
acquired property in respect of Loans, such fair market value to be determined
by an appraiser selected by the Trustee; PROVIDED, HOWEVER, that in no event
shall the trust created hereby continue beyond the expiration of 21 years from
the death of the last survivor of the descendants of Joseph P. Kennedy, the late
ambassador of the United States to the Court of St. James, living on the date
hereof; and PROVIDED, FURTHER, that a "plan of liquidation" of each of REMIC I
and II in accordance with Section 860F of the Code must be adopted in
conjunction with any termination effected pursuant to subclauses (i), (ii), or
(iii) of this Section 9.1.

         The Servicer is hereby granted the right to purchase the Loans pursuant
to clause (ii) above, PROVIDED, HOWEVER, that such right shall be conditioned
upon (a) the Principal Balances of such Loans, at the time of any such purchase,
aggregating an amount less than 10% of the aggregate Principal Balance of the
Loans on the Cut-off Date, after deduction of payments due on or before such
date, and (b) the aggregate price in clause (ii) above must be not less than the
aggregate fair market value of the Loans and all such acquired property.

         Notice of any termination pursuant to clause (i), (ii) or (iii) above,
specifying the Distribution Date upon which all Certificateholders may surrender
their Certificates to the Trustee or its agent for payment and cancellation,
shall be given promptly by the Trustee or its agent (upon direction by the
Servicer no less than 10 days prior to the date such notice is to be mailed) by
letter to Certificateholders and each Rating Agency mailed by first class mail
no later than the 25th day of the month preceding the month of such final
distribution specifying (i) the Distribution Date upon which final payment on
the Certificates will be made upon presentation and surrender of Certificates

                                      114
<PAGE>

at the office or agency of the Trustee or the Certificate Registrar therein
designated, (ii) the amount of any such final payment and (iii) that the Record
Date otherwise applicable to such Distribution Date is not applicable, payments
being made only upon presentation and surrender of the Certificates at the
office or agency of the Trustee or the Certificate Registrar therein specified.
The Trustee or its agent shall give such notice to the Certificate Registrar and
each Rating Agency at the time such notice is given to the Certificateholders.
Upon any such termination, the duties of the Certificate Registrar shall also
terminate. In the event such notice is given in connection with Depositor's
election to purchase, the Depositor shall deposit in the Certificate Account on
the related Withdrawal Date an amount equal to the above-described purchase
price and upon such deposit Certificateholders will be entitled to the amount of
such purchase price but not amounts in excess thereof, all as provided herein.
With respect to the Certificates, upon presentation and surrender of the
Certificates pursuant to any termination under this Section 9.1, the Trustee or
Paying Agent shall cause to be distributed to Certificateholders an amount equal
to (a) the amount otherwise distributable on such Distribution Date, if not in
connection with a purchase; or (b) if the Depositor elected to so purchase, the
purchase price calculated as above provided. Upon any termination pursuant to
clause (iii) above, or upon certification to the Trustee by a Servicing Officer
following such final deposit, the Trustee and any Custodian shall promptly
release to the Servicer the Mortgage Files for the remaining Loans, and the
Trustee shall execute all assignments, endorsements and other instruments
necessary to effectuate such transfer.

         In the event that all of the Certificateholders shall not surrender
their Certificates for cancellation within three months after the time specified
in the above-mentioned written notice, the Trustee or its agent shall give a
second written notice to the remaining Certificateholders to surrender their
Certificates for cancellation and receive the final distribution with respect
thereto. If within three months after the second notice all the Certificates
shall not have been surrendered for cancellation, the Trustee or its agent shall
take appropriate and reasonable steps as directed by the Servicer, to contact
the remaining Certificateholders concerning surrender of their Certificates, and
the cost thereof shall be paid out of the funds and other assets which remain in
trust hereunder.

         Section 9.2 TRUSTS IRREVOCABLE. Except as expressly provided herein,
all trusts created hereby are irrevocable.

         Section 9.3 ADDITIONAL TERMINATION REQUIREMENTS.

         (a) In the event the Depositor exercises its purchase option as
provided in Section 9.1, the Trust Fund shall be terminated in accordance with
the following additional requirements, unless the Trustee and the Certificate
Administrator have received an Opinion of Counsel to the effect that the failure
of the Trust Fund to comply with the requirements of this Section 9.3 will not
(i) result in the imposition of taxes on "prohibited transactions" of REMIC I or
REMIC II of the Trust Fund as described in Section 860F(a)(2) of the Code, or
(ii) cause either REMIC I or REMIC II of the Trust Fund to fail to qualify as a
REMIC at any time that any Certificates are outstanding:

                  (A) Within 90 days prior to the final Distribution Date set
         forth in the notice given

                                      115
<PAGE>

         by the Depositor under Section 9.1, the Tax Matters Person shall
         prepare the documents associated with and shall adopt a plan of
         complete liquidation of each of REMIC I and REMIC II of the Trust Fund;
         and

                  (B) At or after the time of adoption of such a plan of
         complete liquidation and at or prior to the final Distribution Date,
         the Servicer as agent of the Trustee shall sell all of the assets of
         the Trust Fund to the Depositor for cash in accordance with such plan
         of liquidation; provided, however, that in the event that a calendar
         quarter ends after the time of adoption of such a plan of complete
         liquidation but prior to the final Distribution Date, the Servicer
         shall not sell any of the assets of the Trust Fund prior to the close
         of that calendar quarter.

         (b) The Tax Matters Person hereby agrees to adopt such a plan of
complete liquidation and to take such other action in connection therewith as
may be reasonably requested by the Servicer.

                                    ARTICLE X

                            MISCELLANEOUS PROVISIONS

         Section 10.1 AMENDMENT. This Agreement may be amended from time to time
by the Depositor and the Trustee, without the consent of any of the
Certificateholders, (a) to cure any ambiguity, to correct or supplement any
provision herein which may be inconsistent with any other provision herein, or
to make any other provisions with respect to matters or questions arising under
this Agreement, (b) to modify, eliminate or add to any provisions to such extent
as shall be necessary to maintain the qualification of the Trust Fund as a REMIC
at all times that any Class A or Subordinate Certificates are outstanding,
provided, that the Trustee has received an Opinion of Counsel to the effect that
such action is necessary or desirable to maintain such qualification, provided,
that such action under clauses (a) and (b) above shall not adversely affect in
any material respect the interests of any Certificateholder or (c) such
amendment is made to conform the terms of this Agreement to the terms described
in the Prospectus dated July 24, 2002, together with the Prospectus Supplement
dated July 24, 2002.

         This Agreement may also be amended from time to time by the Depositor
and the Trustee with the consent of the Holders of Certificates evidencing, in
aggregate, not less than 66-2/3% of each Class of Certificates affected thereby
for the purpose of adding any provisions or changing in any manner or
eliminating any of the provisions of this Agreement or of modifying in any
manner the rights of the Holders of Certificates of such Class; provided,
however, that no such amendment shall (a) reduce in any manner the amount of, or
delay the timing of, payments received on Loans which are required to be
distributed in respect of any Certificate without the consent of the Holder of
such Certificate; (b) adversely affect in any material respect the interest of
the Holders of the Class A Certificates in a manner other than as described in
(a) above without the consent of the

                                      116
<PAGE>

Holders of Class A Certificates aggregating not less than 66-2/3% of the
aggregate Percentage Interest evidenced by all Class A Certificates; (c)
adversely affect in any material respect the interest of the Holders of the
Subordinate Certificates in a manner other than as described in clause (a) above
without the consent of the Holders of Subordinate Certificates aggregating not
less than 66-2/3% of the aggregate Percentage Interest evidenced by all
Subordinate Certificates; (d) adversely affect in any material respect the
interest of the Class R Certificateholder without the consent of the Holder of
the Class R Certificate; (e) change in any material respect the rights and
obligations of the Servicer or successor Servicer under this Agreement without
the prior written consent of such party; or (f) reduce the aforesaid percentage
of the Certificates the Holders of which are required to consent to any such
amendments without the consent of the Holders of all Certificates then
outstanding; PROVIDED, that for the purposes of this Agreement, the Holder of
the Class R Certificate shall have no right to vote at all times that any Class
A Certificates or Subordinate Certificates are outstanding if such amendment
relates to the modification, elimination or addition of any provision necessary
to maintain the qualification of the Trust Fund as a REMIC.

         Notwithstanding any contrary provision of this Agreement, the Trustee
shall not consent to any amendment to this Agreement unless it shall have first
received an Opinion of Counsel to the effect that such amendment will not cause
either REMIC I or REMIC II of the Trust Fund to fail to qualify as a REMIC at
any time that any REMIC I Regular Interests or REMIC II Certificates are
outstanding.

         As soon as practicable after the execution of any such amendment, the
Trustee shall furnish written notification of the substance of such amendment to
each Certificateholder and each Rating Agency.

         It shall not be necessary for the consent of the Certificateholders
under this Section 10.1 to approve the particular form of any proposed
amendment, but it shall be sufficient if such consent shall approve the
substance thereof. The manner of obtaining such consents and of evidencing the
authorization of the execution thereof by Certificateholders shall be subject to
such reasonable regulations as the Trustee may prescribe.

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

         Section 10.2 RECORDATION OF AGREEMENT. This Agreement (or an abstract
hereof, if acceptable by the applicable recording office) is subject to
recordation in all appropriate public offices for real property records in all
the counties or other comparable jurisdictions in which any or all of the
properties subject to the Mortgages are situated, and in any other appropriate
public recording office or elsewhere, such recordation to be effected by the
Servicer at its expense, but only after the Depositor has delivered to the
Trustee an Opinion of Counsel to the effect that such

                                      117
<PAGE>

recordation materially and beneficially affects the interests of the
Certificateholders.

         For the purpose of facilitating the recordation of this Agreement as
herein provided and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and such counterparts shall constitute but one and
the same instrument.

         Section 10.3 LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS. The death or
incapacity of any Certificateholder shall not operate to terminate this
Agreement or the Trust Fund, nor entitle such Certificateholder's legal
representatives or heirs to claim an accounting or take any action or proceeding
in any court for a partition or winding up of the Trust Fund, nor otherwise
affect the rights, obligations and liabilities of the parties hereto or any of
them.

         Except as otherwise expressly provided herein no Certificateholder,
solely by virtue of its status as Certificateholder, shall have any right to
vote or in any manner otherwise control the operation and management of the
Trust Fund, or the obligations of the parties hereto, nor shall anything herein
set forth, or contained in the terms of the Certificates, be construed so as to
constitute the Certificateholders from time to time as partners or members of an
association, nor shall any Certificateholder be under any liability to any third
person by reason of any action taken by the parties to this Agreement pursuant
to any provision hereof.

         No Certificateholder, solely by virtue of its status as
Certificateholder, shall have any right by virtue or by availing of any
provision of this Agreement to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Agreement, unless such
holder previously shall have given to the Trustee a written notice of default
and of the continuance thereof, as hereinbefore provided, and unless all of the
Holders of Certificates evidencing, in aggregate, not less than 25% of the Trust
Fund shall have made written request upon the Trustee to institute such action,
suit or proceeding in its own name as Trustee hereunder and shall have offered
to the Trustee such reasonable indemnity as it may require against the costs,
expenses and liabilities to be incurred therein or thereby, and the Trustee, for
60 days after its receipt of such notice, request and offer of indemnity, shall
have neglected or refused to institute any such action, suit or proceeding; it
being understood and intended, and being expressly covenanted by each
Certificateholder with every other Certificateholder and the Trustee, that no
one or more holders of Certificates shall have any right in any manner whatever
by virtue or by availing of any provision of this Agreement to affect, disturb
or prejudice the rights of the Holders of any other of such Certificates, or to
obtain or seek to obtain priority over or preference to any other such Holder,
or to enforce any right under this Agreement, except in the manner herein
provided and for the benefit of all Certificateholders. For the protection and
enforcement of the provisions of this Section 10.3, each and every
Certificateholder and the Trustee shall be entitled to such relief as can be
given either at law or in equity.

         Section 10.4 GOVERNING LAW; JURISDICTION. THIS AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD
TO CONFLICTS OF LAWS PRINCIPLES), AND THE OBLIGATIONS,

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<PAGE>

RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS.

         Section 10.5 NOTICES. All demands, notices and communications hereunder
shall be in writing and shall be deemed to have been duly given if personally
delivered at or mailed by certified or registered mail, return receipt requested
(a) in the case of the Depositor, to ABN AMRO Mortgage Corporation, 135 South
LaSalle Street, Suite 925, Chicago, Illinois 60603, Attention: Maria Fregosi -
Director - ABN AMRO Mortgage Operations, or such other address as may hereafter
be furnished to the Servicer and the Trustee in writing by the Depositor, (b) in
the case of the Servicer, to InterFirst, 777 East Eisenhower Parkway, Ann Arbor,
Michigan 48108, Attention: Steve Kapp - Vice President with a copy to ABN AMRO
Mortgage Group, Inc., 2600 West Big Beaver Road, Troy, Michigan 48084,
Attention: Thomas E. Reiss, or such other address as may hereafter be furnished
to the Depositor and the Trustee in writing by the Servicer, (c) in the case of
the Trustee, to the Corporate Trust Office, or such other address as may
hereafter be furnished to the Depositor and the Servicer in writing by the
Trustee, in each case Attention: Corporate Trust Department, (d) in the case of
Moody's, to Moody's Investors Service, 99 Church Street, 4th Floor, New York,
New York, 10007, Attention: Asset Backed Monitoring, or such other address as
may hereinafter be furnished to the Depositor in writing by Moody's and (e) in
the case of Fitch, to Fitch, Inc., One State Street Plaza, 32nd Floor, New York,
New York 10004, Attention: Alla Sirotic, Residential Mortgage, or such other
address as may hereinafter be furnished to the Depositor in writing by Fitch.
Any notice required or permitted to be mailed to a Certificateholder shall be
given by first class mail, postage prepaid, at the address of such Holder as
shown in the Certificate Register. Any notice mailed or transmitted within the
time prescribed in this Agreement shall be conclusively presumed to have been
duly given, whether or not the addressee receives such notice; provided, that
any demand, notice or communication to or upon the Depositor, the Servicer or
the Trustee shall not be effective until received.

         Section 10.6 SEVERABILITY OF PROVISIONS. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Certificates
or the rights of the holders thereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      119
<PAGE>

         IN WITNESS WHEREOF, the Depositor, the Servicer and the Trustee have
caused their names to be signed hereto by their respective officers thereunto
duly authorized, all as of the day and year first above written.

                                        ABN AMRO MORTGAGE CORPORATION, as
                                        Depositor

                                        By: /s/ Daniel J. Fischer
                                            ---------------------
                                        Name:   Daniel J. Fischer
                                        Its:    Vice President

                                      120
<PAGE>

                                        JPMORGAN CHASE BANK, as Trustee

                                        By: /s/ Chris Jackson
                                            ---------------------
                                        Name:   Chris Jackson
                                        Its:    Trust Officer

                                      121
<PAGE>

                                        ABN AMRO MORTGAGE GROUP, INC., as
                                        Servicer

                                        By: /s/ Richard Geary
                                        Name:   Richard Geary
                                        Its:    Group Senior Vice President

                                      122
<PAGE>

STATE OF FLORIDA        )
                        )   ss.:
COUNTY OF _______       )

           On the ________ day of ______________, 2002, before me,
_______________, personally appeared Daniel J. Fischer, a Vice President of ABN
AMRO Mortgage Corporation, personally known to me (or proved to me on the basis
of satisfactory evidence) to be the person whose name is subscribed to the
within instrument, and acknowledged to me that he executed the same in his
authorized capacity, and that by his signature on the instrument the person, or
the entity upon behalf of which the person acted, executed the instrument.

           WITNESS my hand and official seal:

                                            Signature___________________________
                                                             (SEAL)

                                      123
<PAGE>

STATE OF TEXAS          )
                        )   ss.:
COUNTY OF HARRIS        )

           On the ______ day of _________________, 2002, before me,
__________________________, personally appeared Chris Jackson, known to me to be
a Trust Officer of JPMorgan Chase Bank, one of the institutions that executed
the within instrument and also known to me to be the person who executed it on
behalf of said institution, and acknowledged to me that such institution
executed the within instrument.

           IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                                     ___________________________
                                                     Notary Public

[NOTARIAL SEAL]

                                      124
<PAGE>

STATE OF MICHIGAN       )
                        )   ss.:
COUNTY OF OAKLAND       )

           On the ______ day of ____________________, 2002, before me, Sally
Raffler, personally appeared Richard Geary, known to me to be a Group Senior
Vice President of ABN AMRO Mortgage Group, Inc., one of the corporations that
executed the within instrument and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

           IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                                     ________________________
                                                     Notary Public

[NOTARIAL SEAL]

                                      125
<PAGE>

                                    EXHIBIT A
                                    ---------

                              FORMS OF CERTIFICATES

<PAGE>

                                                                     Exhibit A-1
                                                                CUSIP __________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-1

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July 25, 2002. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.00% per annum.

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

Series 2002-6                                        Portion of the Class
                                                     A-1 Principal Balance as of
                                                     the Cut-Off Date evidenced
                                                     by this Certificate:
                                                     $______________________
Class A-1 Remittance Rate:          6.00%

Cut-Off Date:                       July 1, 2002

First Distribution Date:            August 26, 2002

Last Scheduled Distribution Date:   August 25, 2032

Class A-1 Principal Balance as of the Cut-Off Date: $______________________

                          _______________________
                              Registered Owner           Certificate No. _____

                                      A-1-1

<PAGE>

                                                                     Exhibit A-2
                                                                 CUSIP _________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-2

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July 25, 2002. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
5.80% per annum.

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

Series 2002-6                                        Portion of the Class
                                                     A-2 Principal Balance as of
                                                     the Cut-Off Date evidenced
                                                     by this Certificate:
                                                     $__________________

Class A-2 Remittance Rate:          5.80%

Cut-Off Date:                       July 1, 2002

First Distribution Date:            August 26, 2002

Last Scheduled Distribution Date:   August 25, 2032

Class A-2 Principal Balance as of the Cut-Off Date: $______________________

                          _______________________
                              Registered Owner           Certificate No. _____

                                      A-2-1

<PAGE>

                                                                     Exhibit A-3
                                                                  CUSIP ________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-3

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July 25, 2002. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
5.70% per annum.

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

Series 2002-6                                        Portion of the Class
                                                     A-3 Principal Balance as of
                                                     the Cut-Off Date evidenced
                                                     by this Certificate:
                                                     $________________
Class A-3 Remittance Rate:          5.70%

Cut-Off Date:                       July 1, 2002

First Distribution Date:            August 26, 2002

Last Scheduled Distribution Date:   August 25, 2032

Class A-3 Principal Balance as of the Cut-Off Date: $_____________________

                             ______________________
                                 Registered Owner          Certificate No. _____

                                      A-3-1

<PAGE>

                                                                     Exhibit A-4
                                                                    CUSIP ______

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-4

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July 25, 2002. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.00% per annum.

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

Series 2002-6                                        Portion of the Class
                                                     A-4 Principal Balance as of
                                                     the Cut-Off Date evidenced
                                                     by this Certificate:
                                                     $__________________
Class A-4 Remittance Rate:          6.00%

Cut-Off Date:                       July 1, 2002

First Distribution Date:            August 26, 2002

Last Scheduled Distribution Date:   August 25, 2032

Class A-4 Principal Balance as of the Cut-Off Date: $____________________

                               ____________________
                                 Registered Owner          Certificate No. _____

                                      A-4-1

<PAGE>

                                                                     Exhibit A-5
                                                                  CUSIP ________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-5

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July 25, 2002. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is an
adjustable rate as described below.

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

Series 2002-6                                        Portion of the Class
                                                     A-5 Principal Balance as of
                                                     the Cut-Off Date evidenced
                                                     by this Certificate:
                                                     $______________

Class A-5 Remittance Rate: with respect to the initial Interest Accrual Period
is 2.34% per annum, and as to any Interest Accrual Period thereafter, will be a
per annum rate equal to LIBOR plus 0.50% (subject to a maximum rate of 9.00% per
annum and a minimum rate of 0.50% per annum).

Cut-Off Date:                       July 1, 2002

First Distribution Date:            August 26, 2002

Last Scheduled Distribution Date:   August 25, 2032

Class A-5 Principal Balance as of the Cut-Off Date: $______________

                               ____________________
                                 Registered Owner          Certificate No. _____

                                      A-5-1

<PAGE>

                                                                     Exhibit A-6
                                                                 CUSIP _________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-6

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July 25, 2002. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is an
adjustable rate as described below.

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

Series 2002-6                                        Portion of the Class
                                                     A-6 Notional Amount as of
                                                     the Cut-Off Date evidenced
                                                     by this Certificate:
                                                     $_______________

Class A-6 Remittance Rate: with respect to the
initial Interest Accrual Period is 6.66% per
annum, and as to any Interest Accrual Period
thereafter, will be a per annum rate equal to
8.50% minus LIBOR (subject to a maximum rate of
8.50% per annum and a minimum rate of 0.00% per
annum).

Cut-Off Date:                       July 1, 2002

First Distribution Date:            August 26, 2002

Last Scheduled Distribution Date:   August 25, 2032

Class A-6 Notional Amount as of the Cut-Off Date: $_______________

                               ____________________
                                 Registered Owner          Certificate No. _____

                       A-6-1

<PAGE>

                                                                     Exhibit A-7
                                                                CUSIP __________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-7

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July 25, 2002. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.50% per annum.

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

Series 2002-6                                        Portion of the Class
                                                     A-7 Principal Balance as of
                                                     the Cut-Off Date evidenced
                                                     by this
                                                     Certificate:$______________
Class A-7 Remittance Rate:          6.50%

Cut-Off Date:                       July 1, 2002

First Distribution Date:            August 26, 2002

Last Scheduled Distribution Date:   August 25, 2032

Class A-7 Principal Balance as of the Cut-Off Date: $_______________

                               ____________________
                                 Registered Owner          Certificate No. _____

                                      A-7-1

<PAGE>

                                                                     Exhibit A-8
                                                                CUSIP __________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-8

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July 25, 2002. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.50% per annum.

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

Series 2002-6                                        Portion of the Class
                                                     A-8 Notional Amount as of
                                                     the Cut-Off Date evidenced
                                                     by this
                                                     Certificate:$______________
Class A-8 Remittance Rate:          6.50%

Cut-Off Date:                       July 1, 2002

First Distribution Date:            August 26, 2002

Last Scheduled Distribution Date:   August 25, 2032

Class A-8 Notional Amount as of the Cut-Off Date: $_______________

                               ____________________
                                 Registered Owner          Certificate No. _____

                                      A-8-1

<PAGE>

                                                                     Exhibit A-9
                                                                CUSIP __________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-9

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July 25, 2002. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.50% per annum.

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

Series 2002-6                                        Portion of the Class
                                                     A-9 Principal Balance as of
                                                     the Cut-Off Date evidenced
                                                     by this
                                                     Certificate:$______________
Class A-9 Remittance Rate:          6.50%

Cut-Off Date:                       July 1, 2002

First Distribution Date:            August 26, 2002

Last Scheduled Distribution Date:   August 25, 2032

Class A-9 Principal Balance as of the Cut-Off Date: $_______________

                               ____________________
                                 Registered Owner          Certificate No. _____

                                      A-9-1

<PAGE>

                                                                    Exhibit A-10
                                                                CUSIP __________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                   Class A-10

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July 25, 2002. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.50% per annum.

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

Series 2002-6                                        Portion of the Class
                                                     A-10 Principal Balance as
                                                     of the Cut-Off Date
                                                     evidenced by this
                                                     Certificate:
                                                     $______________________
Class A-10 Remittance Rate:         6.50%

Cut-Off Date:                       July 1, 2002

First Distribution Date:            August 26, 2002

Last Scheduled Distribution Date:   August 25, 2032

Class A-10 Principal Balance as of the Cut-Off Date: $______________________

                               ____________________
                                 Registered Owner          Certificate No. _____

                                     A-10-1

<PAGE>

                                                                    Exhibit A-11
                                                                CUSIP __________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-P

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July 25, 2002. Interest is not
payable with respect to this Certificate.

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

Series 2002-6                                        Portion of the Class
                                                     A-P Principal Balance as of
                                                     the Cut-Off Date evidenced
                                                     by this Certificate:
                                                     $______________________
Class A-P Remittance Rate:          0.00%

Cut-Off Date:                       July 1, 2002

First Distribution Date:            August 26, 2002

Last Scheduled Distribution Date:   August 25, 2032

Class A-P Principal Balance as of the Cut-Off Date: $______________________

                               ____________________
                                 Registered Owner          Certificate No. _____

                                     A-11-1

<PAGE>

                                                                    Exhibit A-12
                                                                CUSIP __________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class A-X

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July 25, 2002. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.50% per annum.

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

Series 2002-6                                        Portion of the Class
                                                     A-X Notional Amount as of
                                                     the Cut-Off Date evidenced
                                                     by this Certificate:
                                                     $______________________
Class A-X Remittance Rate:          6.50%

Cut-Off Date:                       July 1, 2002

First Distribution Date:            August 26, 2002

Last Scheduled Distribution Date:   August 25, 2032

Class A-X Notional Amount as of the Cut-Off Date: $______________________

                               ____________________
                                 Registered Owner          Certificate No. _____

                                     A-12-1

<PAGE>

                                                                    Exhibit A-13
                                                                CUSIP __________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                     Class M

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code"). The issue date (the "Issue Date") of this Certificate is July 25, 2002.
The rate at which interest is payable as of the Issue Date with respect to this
Certificate is 6.50% per annum.

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

The Class M Certificates will be subordinate in right of payment to and provide
credit support to certain Classes of Certificates, as described in the Pooling
Agreement.

Series 2002-6                                        Portion of the Class
                                                     M Principal Balance as of
                                                     the Cut-Off Date evidenced
                                                     by this Certificate:
                                                     $_______________
Class M Remittance Rate:             6.50%

Cut-Off Date:                        July 1, 2002

First Distribution Date:             August 26, 2002

Last Scheduled Distribution Date:    August 25, 2032

Class M Principal Balance as of the Cut-Off Date: $_______________
                                                ___________________

                               ____________________
                                 Registered Owner          Certificate No. _____

                                     A-13-1

<PAGE>

                                                                    Exhibit A-14
                                                                  CUSIP ________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class B-1

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July 25, 2002. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.50% per annum.

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

The Class B-1 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series 2002-6                                        Portion of the Class
                                                     B-1 Principal Balance as of
                                                     the Cut-Off Date evidenced
                                                     by this Certificate:
                                                     $_______________
Class B-1 Remittance Rate:          6.50%

Cut-Off Date:                       July 1, 2002

First Distribution Date:            August 26, 2002

Last Scheduled Distribution Date:    August 25, 2032

Class B-1 Principal Balance as of the Cut-Off Date: $_______________

                               ____________________
                                 Registered Owner          Certificate No. _____

                                     A-14-1

<PAGE>

                                                                    Exhibit A-15
                                                               CUSIP ___________

                        MORTGAGE PASS-THROUGH CERTIFICATE

                                    Class B-2

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended. The issue
date (the "Issue Date") of this Certificate is July 25, 2002. The rate at which
interest is payable as of the Issue Date with respect to this Certificate is
6.50% per annum.

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

The Class B-2 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series 2002-6                                        Portion of the Class
                                                     B-2 Principal Balance as of
                                                     the Cut-Off Date evidenced
                                                     by this Certificate:
                                                     $_______________
Class B-2 Remittance Rate:          6.50%

Cut-Off Date:                        July 1, 2002

First Distribution Date:            August 26, 2002

Last Scheduled Distribution Date:    August 25, 2032

Class B-2 Principal Balance as of the Cut-Off Date: $_______________

                               ____________________
                                 Registered Owner          Certificate No. _____

                                     A-15-1

<PAGE>

                                                                    Exhibit A-16
                                                                 CUSIP _________

                        MORTGAGE PASS-THROUGH CERTIFICATE
                                    Class B-3

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code"). The issue date (the "Issue Date") of this Certificate is July 25, 2002.
The rate at which interest is payable as of the Issue Date with respect to this
Certificate is 6.50% per annum.

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

  IN THE CASE OF ANY CLASS B-3 CERTIFICATE PRESENTED FOR REGISTRATION IN THE
  NAME OF AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
  TRANSACTION PROVISIONS OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
  AS AMENDED ("ERISA"), OR SECTION 4975 OF THE CODE (OR COMPARABLE PROVISIONS OF
  ANY SUBSEQUENT ENACTMENTS) (A "PLAN"), A TRUSTEE OF ANY SUCH PLAN, OR ANY
  OTHER PERSON WHO IS USING "PLAN ASSETS" OF ANY SUCH PLAN TO EFFECT SUCH
  ACQUISITION, THE TRUSTEE OR CERTIFICATE REGISTRAR SHALL REQUIRE SUCH
  TRANSFEREE TO PROVIDE AN OFFICER'S CERTIFICATE SIGNED BY A RESPONSIBLE OFFICER
  OF SUCH TRANSFEREE STATING THAT THE TRANSFEREE IS AN INSURANCE COMPANY USING
  ASSETS OF AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN THE MEANING OF
  DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 95-60) TO
  EFFECT SUCH PURCHASE AND SATISFIES ALL OF THE REQUIREMENTS FOR EXEMPTIVE
  RELIEF UNDER SECTIONS I AND III OF PTCE 95-60, WHICH OFFICER'S CERTIFICATE
  SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE CERTIFICATE ADMINISTRATOR, IF ANY,
  OR THE DEPOSITOR.

The Class B-3 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series 2002-6                                        Portion of the Class
                                                     B-3 Principal Balance as of
                                                     the Cut-Off Date evidenced
                                                     by this Certificate:
                                                     $_______________
Class B-3 Remittance Rate:          6.50%

Cut-Off Date:                        July 1, 2002
First Distribution Date:             August 26, 2002
Last Scheduled Distribution Date:    August 25, 2032

Class B-3 Principal Balance as of the Cut-Off Date: $_______________

                               ____________________
                                 Registered Owner          Certificate No. _____

                                     A-16-1

<PAGE>

THIS CERTIFICATE (OR ITS PREDECESSOR) HAS NOT BEEN AND IS NOT EXPECTED TO BE
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, UNITED STATES PERSONS, EXCEPT AS SET FORTH IN THE NEXT SENTENCE. BY
ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE OWNER:

  (1)      REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS
           DEFINED IN RULE 144A UNDER THE SECURITIES ACT) (A "QIB") AND IS
           ACQUIRING SUCH CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT FOR THE
           ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS, (WHICH
           OTHERS ARE ALSO QIBS) TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
           BEING MADE IN RELIANCE ON RULE 144A, (B) IT HAS ACQUIRED THIS
           CERTIFICATE IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION
           S UNDER THE SECURITIES ACT OR (C) IS OTHERWISE ACQUIRING THIS
           CERTIFICATE IN A TRANSACTION EXEMPT FROM THE SECURITIES ACT, IN WHICH
           CASE, (A) HAS CERTIFIED TO THE TRUSTEE (OR ANY CERTIFICATE REGISTRAR
           APPOINTED BY IT) IN WRITING THE FACTS SURROUNDING SUCH TRANSFER, IN
           FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE (OR ANY SUCH
           CERTIFICATE REGISTRAR APPOINTED BY IT) AND THE DEPOSITOR AND (B) HAS
           DELIVERED A WRITTEN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE
           (OR ANY CERTIFICATE REGISTRAR APPOINTED BY IT) AND THE DEPOSITOR TO
           THE EFFECT THAT ITS ACQUISITION WILL NOT VIOLATE THE SECURITIES ACT,

  (2)      AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS CERTIFICATE
           EXCEPT (A) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QIB
           PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB IN A
           TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE
           SECURITIES ACT, (B) IN AN OFFSHORE TRANSACTION MEETING THE
           REQUIREMENTS OF RULE 903 OR RULE 904 UNDER THE SECURITIES ACT, (C) IN
           A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE
           SECURITIES ACT, (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
           UNDER THE SECURITIES ACT, OR (E) SUCH SALE, PLEDGE OR OTHER TRANSFER
           IS OTHERWISE MADE IN A TRANSFER EXEMPT FROM THE REGISTRATION
           REQUIREMENTS OF THE SECURITIES ACT, IN WHICH CASE (A) THE TRUSTEE (OR
           ANY CERTIFICATE REGISTRAR APPOINTED BY IT) SHALL REQUIRE THAT BOTH
           THE PROSPECTIVE TRANSFEROR AND THE PROSPECTIVE

                                     A-16-2

<PAGE>

           TRANSFEREE CERTIFY TO THE TRUSTEE, THE SELLER, THE DEPOSITOR AND THE
           INITIAL PURCHASER IN WRITING THE FACTS SURROUNDING SUCH TRANSFER,
           WHICH CERTIFICATION SHALL BE IN FORM AND SUBSTANCE SATISFACTORY TO
           THE TRUSTEE (OR ANY CERTIFICATE REGISTRAR APPOINTED BY IT) AND THE
           DEPOSITOR, AND (B) THE TRUSTEE (OR ANY CERTIFICATE REGISTRAR
           APPOINTED BY IT) SHALL REQUIRE A WRITTEN OPINION OF COUNSEL (WHICH
           SHALL NOT BE AT THE EXPENSE OF THE TRUSTEE) SATISFACTORY TO THE
           TRUSTEE (OR ANY CERTIFICATE REGISTRAR APPOINTED BY IT) AND THE
           DEPOSITOR TO THE EFFECT THAT SUCH TRANSFER WILL NOT VIOLATE THE
           SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS,

  (3)      AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
           CERTIFICATE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE
           SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND,

  (4)      ACKNOWLEDGES THAT ANY ATTEMPTED TRANSFER IN CONTRAVENTION OF THE
           IMMEDIATELY PRECEDING RESTRICTIONS WILL BE VOID AB INITIO AND THE
           PURPORTED TRANSFEROR WILL CONTINUE TO BE TREATED AS THE OWNER OF THIS
           CERTIFICATE FOR ALL PURPOSES.

AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION" AND "UNITED STATES" HAVE THE
MEANINGS GIVEN TO THEM BY RULE 902 OF REGULATION S UNDER THE SECURITIES ACT. THE
POOLING AND SERVICING AGREEMENT UNDER WHICH THIS CERTIFICATE WAS ISSUED CONTAINS
A PROVISION REQUIRING THE TRUSTEE (OR CERTIFICATE REGISTRAR APPOINTED BY THE
TRUSTEE) TO REFUSE TO REGISTER ANY TRANSFER OF THIS OFFERED CERTIFICATE IN
VIOLATION OF THE FOREGOING.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE, AS
DEFINED HEREIN, OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                                     A-16-3

<PAGE>

                [IF A REGULATION S TEMPORARY GLOBAL CERTIFICATE]

THIS REGULATION S TEMPORARY GLOBAL CERTIFICATE IS A "TEMPORARY GLOBAL
CERTIFICATE" FOR PURPOSES OF REGULATION S UNDER THE UNITED STATES SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"), WHICH IS EXCHANGEABLE FOR A
PERMANENT GLOBAL CERTIFICATE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH
HEREIN.

                [IF A REGULATION S PERMANENT GLOBAL CERTIFICATE]

THIS REGULATION S PERMANENT GLOBAL CERTIFICATE IS A GLOBAL CERTIFICATE WHICH IS
EXCHANGEABLE FOR INTERESTS IN OTHER GLOBAL CERTIFICATES AND DEFINITIVE
CERTIFICATES SUBJECT TO THE TERMS AND CONDITIONS SET FORTH HEREIN AND IN THE
POOLING AND SERVICING AGREEMENT (AS DEFINED HEREIN).

                                                      A-16-4

<PAGE>

                                                                    Exhibit A-17
                                                                CUSIP __________

                        MORTGAGE PASS-THROUGH CERTIFICATE
                                    Class B-4

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code"). The issue date (the "Issue Date") of this Certificate is July 25, 2002.
The rate at which interest is payable as of the Issue Date with respect to this
Certificate is 6.50% per annum.

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

  IN THE CASE OF ANY CLASS B-4 CERTIFICATE PRESENTED FOR REGISTRATION IN THE
  NAME OF AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
  TRANSACTION PROVISIONS OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
  AS AMENDED ("ERISA"), OR SECTION 4975 OF THE CODE (OR COMPARABLE PROVISIONS OF
  ANY SUBSEQUENT ENACTMENTS) (A "PLAN"), A TRUSTEE OF ANY SUCH PLAN, OR ANY
  OTHER PERSON WHO IS USING "PLAN ASSETS" OF ANY SUCH PLAN TO EFFECT SUCH
  ACQUISITION, THE TRUSTEE OR CERTIFICATE REGISTRAR SHALL REQUIRE SUCH
  TRANSFEREE TO PROVIDE AN OFFICER'S CERTIFICATE SIGNED BY A RESPONSIBLE OFFICER
  OF SUCH TRANSFEREE STATING THAT THE TRANSFEREE IS AN INSURANCE COMPANY USING
  ASSETS OF AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN THE MEANING OF
  DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 95-60) TO
  EFFECT SUCH PURCHASE AND SATISFIES ALL OF THE REQUIREMENTS FOR EXEMPTIVE
  RELIEF UNDER SECTIONS I AND III OF PTCE 95-60, WHICH OFFICER'S CERTIFICATE
  SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE CERTIFICATE ADMINISTRATOR, IF ANY,
  OR THE DEPOSITOR

The Class B-4 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series 2002-6                                        Portion of the Class
                                                     B-4 Principal Balance as of
                                                     the Cut-Off Date evidenced
                                                     by this Certificate:
                                                     $_______________
Class B-4 Remittance Rate:          6.50%

Cut-Off Date:                        July 1, 2002
First Distribution Date:            August 26, 2002
Last Scheduled Distribution Date:    August 25, 2032

Class B-4 Principal Balance as of the Cut-Off Date: $_______________

                               ____________________
                                 Registered Owner          Certificate No. _____

                                     A-17-1

<PAGE>

THIS CERTIFICATE (OR ITS PREDECESSOR) HAS NOT BEEN AND IS NOT EXPECTED TO BE
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, UNITED STATES PERSONS, EXCEPT AS SET FORTH IN THE NEXT SENTENCE. BY
ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE OWNER:

  (1)      REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS
           DEFINED IN RULE 144A UNDER THE SECURITIES ACT) (A "QIB") AND IS
           ACQUIRING SUCH CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT FOR THE
           ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS, (WHICH
           OTHERS ARE ALSO QIBS) TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
           BEING MADE IN RELIANCE ON RULE 144A, (B) IT HAS ACQUIRED THIS
           CERTIFICATE IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION
           S UNDER THE SECURITIES ACT OR (C) IS OTHERWISE ACQUIRING THIS
           CERTIFICATE IN A TRANSACTION EXEMPT FROM THE SECURITIES ACT, IN WHICH
           CASE, (A) HAS CERTIFIED TO THE TRUSTEE (OR ANY CERTIFICATE REGISTRAR
           APPOINTED BY IT) IN WRITING THE FACTS SURROUNDING SUCH TRANSFER, IN
           FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE (OR ANY SUCH
           CERTIFICATE REGISTRAR APPOINTED BY IT) AND THE DEPOSITOR AND (B) HAS
           DELIVERED A WRITTEN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE
           (OR ANY CERTIFICATE REGISTRAR APPOINTED BY IT) AND THE DEPOSITOR TO
           THE EFFECT THAT ITS ACQUISITION WILL NOT VIOLATE THE SECURITIES ACT,

  (2)      AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS CERTIFICATE
           EXCEPT (A) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QIB
           PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB IN A
           TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE
           SECURITIES ACT, (B) IN AN OFFSHORE TRANSACTION MEETING THE
           REQUIREMENTS OF RULE 903 OR RULE 904 UNDER THE SECURITIES ACT, (C) IN
           A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE
           SECURITIES ACT, (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
           UNDER THE SECURITIES ACT, OR (E) SUCH SALE, PLEDGE OR OTHER TRANSFER
           IS OTHERWISE MADE IN A TRANSFER EXEMPT FROM THE REGISTRATION
           REQUIREMENTS OF THE SECURITIES ACT, IN WHICH CASE (A) THE TRUSTEE (OR
           ANY CERTIFICATE REGISTRAR APPOINTED BY IT) SHALL REQUIRE THAT BOTH
           THE PROSPECTIVE TRANSFEROR AND THE PROSPECTIVE

                                     A-17-2

<PAGE>

           TRANSFEREE CERTIFY TO THE TRUSTEE, THE SELLER, THE DEPOSITOR AND THE
           INITIAL PURCHASER IN WRITING THE FACTS SURROUNDING SUCH TRANSFER,
           WHICH CERTIFICATION SHALL BE IN FORM AND SUBSTANCE SATISFACTORY TO
           THE TRUSTEE (OR ANY CERTIFICATE REGISTRAR APPOINTED BY IT) AND THE
           DEPOSITOR, AND (B) THE TRUSTEE (OR ANY CERTIFICATE REGISTRAR
           APPOINTED BY IT) SHALL REQUIRE A WRITTEN OPINION OF COUNSEL (WHICH
           SHALL NOT BE AT THE EXPENSE OF THE TRUSTEE) SATISFACTORY TO THE
           TRUSTEE (OR ANY CERTIFICATE REGISTRAR APPOINTED BY IT) AND THE
           DEPOSITOR TO THE EFFECT THAT SUCH TRANSFER WILL NOT VIOLATE THE
           SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS,

  (3)      AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
           CERTIFICATE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE
           SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND,

  (4)      ACKNOWLEDGES THAT ANY ATTEMPTED TRANSFER IN CONTRAVENTION OF THE
           IMMEDIATELY PRECEDING RESTRICTIONS WILL BE VOID AB INITIO AND THE
           PURPORTED TRANSFEROR WILL CONTINUE TO BE TREATED AS THE OWNER OF THIS
           CERTIFICATE FOR ALL PURPOSES.

AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION" AND "UNITED STATES" HAVE THE
MEANINGS GIVEN TO THEM BY RULE 902 OF REGULATION S UNDER THE SECURITIES ACT. THE
POOLING AND SERVICING AGREEMENT UNDER WHICH THIS CERTIFICATE WAS ISSUED CONTAINS
A PROVISION REQUIRING THE TRUSTEE (OR CERTIFICATE REGISTRAR APPOINTED BY THE
TRUSTEE) TO REFUSE TO REGISTER ANY TRANSFER OF THIS OFFERED CERTIFICATE IN
VIOLATION OF THE FOREGOING.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE, AS
DEFINED HEREIN, OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                                     A-17-3

<PAGE>

                [IF A REGULATION S TEMPORARY GLOBAL CERTIFICATE]

THIS REGULATION S TEMPORARY GLOBAL CERTIFICATE IS A "TEMPORARY GLOBAL
CERTIFICATE" FOR PURPOSES OF REGULATION S UNDER THE UNITED STATES SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"), WHICH IS EXCHANGEABLE FOR A
PERMANENT GLOBAL CERTIFICATE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH
HEREIN.

                [IF A REGULATION S PERMANENT GLOBAL CERTIFICATE]

THIS REGULATION S PERMANENT GLOBAL CERTIFICATE IS A GLOBAL CERTIFICATE WHICH IS
EXCHANGEABLE FOR INTERESTS IN OTHER GLOBAL CERTIFICATES AND DEFINITIVE
CERTIFICATES SUBJECT TO THE TERMS AND CONDITIONS SET FORTH HEREIN AND IN THE
POOLING AND SERVICING AGREEMENT (AS DEFINED HEREIN).

                                     A-17-4

<PAGE>

                                                                    Exhibit A-18
                                                               CUSIP ___________

                        MORTGAGE PASS-THROUGH CERTIFICATE
                                    Class B-5

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to four-family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

This Certificate represents ownership of a "regular interest" in a "real estate
mortgage investment conduit," as those terms are defined in Sections 860G and
860D, respectively, of the Internal Revenue Code of 1986, as amended (the
"Code"). The issue date (the "Issue Date") of this Certificate is July 25, 2002.
The rate at which interest is payable as of the Issue Date with respect to this
Certificate is 6.50% per annum.

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

  IN THE CASE OF ANY CLASS B-5 CERTIFICATE PRESENTED FOR REGISTRATION IN THE
  NAME OF AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED
  TRANSACTION PROVISIONS OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
  AS AMENDED ("ERISA"), OR SECTION 4975 OF THE CODE (OR COMPARABLE PROVISIONS OF
  ANY SUBSEQUENT ENACTMENTS) (A "PLAN"), A TRUSTEE OF ANY SUCH PLAN, OR ANY
  OTHER PERSON WHO IS USING "PLAN ASSETS" OF ANY SUCH PLAN TO EFFECT SUCH
  ACQUISITION, THE TRUSTEE OR CERTIFICATE REGISTRAR SHALL REQUIRE SUCH
  TRANSFEREE TO PROVIDE AN OFFICER'S CERTIFICATE SIGNED BY A RESPONSIBLE OFFICER
  OF SUCH TRANSFEREE STATING THAT THE TRANSFEREE IS AN INSURANCE COMPANY USING
  ASSETS OF AN "INSURANCE COMPANY GENERAL ACCOUNT" (WITHIN THE MEANING OF
  DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 95-60) TO
  EFFECT SUCH PURCHASE AND SATISFIES ALL OF THE REQUIREMENTS FOR EXEMPTIVE
  RELIEF UNDER SECTIONS I AND III OF PTCE 95-60, WHICH OFFICER'S CERTIFICATE
  SHALL NOT BE AN EXPENSE OF THE TRUSTEE, THE CERTIFICATE ADMINISTRATOR, IF ANY,
  OR THE DEPOSITOR.

The Class B-5 Certificates will be subordinate in right of payment to and
provide credit support to certain Classes of Certificates, as described in the
Pooling Agreement.

Series 2002-6                                        Portion of the Class
                                                     B-5 Principal Balance as of
                                                     the Cut-Off Date evidenced
                                                     by this Certificate:
                                                     $_______________
Class B-5 Remittance Rate:          6.50%

Cut-Off Date:                        July 1, 2002
First Distribution Date:            August 26, 2002
Last Scheduled Distribution Date:    August 25, 2032

Class B-5 Principal Balance as of the Cut-Off Date: $_______________

                               ____________________
                                 Registered Owner          Certificate No. _____

                                     A-18-1

<PAGE>

THIS CERTIFICATE (OR ITS PREDECESSOR) HAS NOT BEEN AND IS NOT EXPECTED TO BE
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, UNITED STATES PERSONS, EXCEPT AS SET FORTH IN THE NEXT SENTENCE. BY
ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE OWNER:

  (1)      REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS
           DEFINED IN RULE 144A UNDER THE SECURITIES ACT) (A "QIB") AND IS
           ACQUIRING SUCH CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT FOR THE
           ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS, (WHICH
           OTHERS ARE ALSO QIBS) TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
           BEING MADE IN RELIANCE ON RULE 144A, (B) IT HAS ACQUIRED THIS
           CERTIFICATE IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION
           S UNDER THE SECURITIES ACT OR (C) IS OTHERWISE ACQUIRING THIS
           CERTIFICATE IN A TRANSACTION EXEMPT FROM THE SECURITIES ACT, IN WHICH
           CASE, (A) HAS CERTIFIED TO THE TRUSTEE (OR ANY CERTIFICATE REGISTRAR
           APPOINTED BY IT) IN WRITING THE FACTS SURROUNDING SUCH TRANSFER, IN
           FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE (OR ANY SUCH
           CERTIFICATE REGISTRAR APPOINTED BY IT) AND THE DEPOSITOR AND (B) HAS
           DELIVERED A WRITTEN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE
           (OR ANY CERTIFICATE REGISTRAR APPOINTED BY IT) AND THE DEPOSITOR TO
           THE EFFECT THAT ITS ACQUISITION WILL NOT VIOLATE THE SECURITIES ACT,

  (2)      AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THIS CERTIFICATE
           EXCEPT (A) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QIB
           PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB IN A
           TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE
           SECURITIES ACT, (B) IN AN OFFSHORE TRANSACTION MEETING THE
           REQUIREMENTS OF RULE 903 OR RULE 904 UNDER THE SECURITIES ACT, (C) IN
           A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE
           SECURITIES ACT, (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
           UNDER THE SECURITIES ACT, OR (E) SUCH SALE, PLEDGE OR OTHER TRANSFER
           IS OTHERWISE MADE IN A TRANSFER EXEMPT FROM THE REGISTRATION
           REQUIREMENTS OF THE SECURITIES ACT, IN WHICH CASE (A) THE TRUSTEE (OR
           ANY CERTIFICATE REGISTRAR APPOINTED BY IT) SHALL REQUIRE THAT BOTH
           THE PROSPECTIVE TRANSFEROR AND THE PROSPECTIVE TRANSFEREE CERTIFY TO
           THE TRUSTEE, THE SELLER, THE DEPOSITOR AND THE INITIAL PURCHASER IN
           WRITING THE FACTS SURROUNDING SUCH TRANSFER, WHICH CERTIFICATION
           SHALL BE IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE (OR ANY
           CERTIFICATE REGISTRAR APPOINTED BY IT) AND THE DEPOSITOR, AND (B) THE
           TRUSTEE (OR ANY CERTIFICATE REGISTRAR APPOINTED BY IT) SHALL REQUIRE
           A WRITTEN

                                     A-18-2

<PAGE>

           OPINION OF COUNSEL (WHICH SHALL NOT BE AT THE EXPENSE OF THE TRUSTEE)
           SATISFACTORY TO THE TRUSTEE (OR ANY CERTIFICATE REGISTRAR APPOINTED
           BY IT) AND THE DEPOSITOR TO THE EFFECT THAT SUCH TRANSFER WILL NOT
           VIOLATE THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS,

  (3)      AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
           CERTIFICATE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE
           SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND,

  (4)      ACKNOWLEDGES THAT ANY ATTEMPTED TRANSFER IN CONTRAVENTION OF THE
           IMMEDIATELY PRECEDING RESTRICTIONS WILL BE VOID AB INITIO AND THE
           PURPORTED TRANSFEROR WILL CONTINUE TO BE TREATED AS THE OWNER OF THIS
           CERTIFICATE FOR ALL PURPOSES.

AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION" AND "UNITED STATES" HAVE THE
MEANINGS GIVEN TO THEM BY RULE 902 OF REGULATION S UNDER THE SECURITIES ACT. THE
POOLING AND SERVICING AGREEMENT UNDER WHICH THIS CERTIFICATE WAS ISSUED CONTAINS
A PROVISION REQUIRING THE TRUSTEE (OR CERTIFICATE REGISTRAR APPOINTED BY THE
TRUSTEE) TO REFUSE TO REGISTER ANY TRANSFER OF THIS OFFERED CERTIFICATE IN
VIOLATION OF THE FOREGOING.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE TRUSTEE, AS
DEFINED HEREIN, OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
AND ANY CERTIFICATE IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                [IF A REGULATION S TEMPORARY GLOBAL CERTIFICATE]

THIS REGULATION S TEMPORARY GLOBAL CERTIFICATE IS A "TEMPORARY GLOBAL
CERTIFICATE" FOR PURPOSES OF REGULATION S UNDER THE UNITED STATES SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES ACT"), WHICH IS EXCHANGEABLE FOR A
PERMANENT GLOBAL CERTIFICATE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH
HEREIN.

                [IF A REGULATION S PERMANENT GLOBAL CERTIFICATE]

THIS REGULATION S PERMANENT GLOBAL CERTIFICATE IS A GLOBAL CERTIFICATE
WHICH IS EXCHANGEABLE FOR INTERESTS IN OTHER GLOBAL CERTIFICATES AND

                                     A-18-3

<PAGE>

DEFINITIVE CERTIFICATES SUBJECT TO THE TERMS AND CONDITIONS SET FORTH HEREIN AND
IN THE POOLING AND SERVICING AGREEMENT (AS DEFINED HEREIN).

                                     A-18-4

<PAGE>

                                    EXHIBIT B
                                    ---------

                          FORM OF RESIDUAL CERTIFICATE
                                                                CUSIP __________
                        MORTGAGE PASS-THROUGH CERTIFICATE

                                     Class R

Evidencing a Percentage Interest in certain distributions with respect to a pool
of conventional one- to-four family mortgage loans formed and administered by

                          ABN AMRO MORTGAGE CORPORATION

ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
IF THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE DEPOSITOR AND
THE CERTIFICATE REGISTRAR THAT (1) SUCH TRANSFEREE IS NOT EITHER (A) THE UNITED
STATES, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY
INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE
FOREGOING, (B) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION
521 OF THE CODE) WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE
CODE, (C) ANY ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF THE CODE (ANY
SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A), (B), OR (C) BEING
HEREINAFTER REFERRED TO AS A "DISQUALIFIED ORGANIZATION"), OR (D) AN AGENT OF A
DISQUALIFIED ORGANIZATION AND (2) NO PURPOSE OF SUCH TRANSFER IS TO ENABLE THE
TRANSFER TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX. SUCH AFFIDAVIT SHALL
INCLUDE CERTAIN REPRESENTATIONS AS TO THE FINANCIAL CONDITION OF THE PROPOSED
TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY
TRANSFER, SALE OR OTHER DISPOSITION OF THIS CLASS R CERTIFICATE TO A
DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH
REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND
SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE
HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON THIS
CERTIFICATE. EACH HOLDER OF A CLASS R CERTIFICATE BY ACCEPTANCE OF THIS
CERTIFICATE SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
PARAGRAPH.

IN THE CASE OF ANY CLASS R CERTIFICATE PRESENTED FOR REGISTRATION IN THE NAME OF
AN EMPLOYEE BENEFIT OR OTHER PLAN SUBJECT TO THE PROHIBITED TRANSACTION
PROVISIONS OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), OR SECTION 4975 OF THE CODE (OR COMPARABLE PROVISIONS OF ANY
SUBSEQUENT ENACTMENTS) (A "PLAN"), OR A TRUSTEE OF ANY SUCH PLAN, OR ANY OTHER
PERSON WHO IS USING "PLAN ASSETS" OF ANY SUCH PLAN TO EFFECT SUCH ACQUISITION,
THE TRUSTEE OR CERTIFICATE REGISTRAR SHALL REQUIRE SUCH TRANSFEREE TO PROVIDE AN
OFFICER'S CERTIFICATE SIGNED BY A RESPONSIBLE OFFICER OF SUCH TRANSFEREE STATING
THAT THE TRANSFEREE IS AN INSURANCE COMPANY USING ASSETS OF AN "INSURANCE
COMPANY GENERAL ACCOUNT" (WITHIN THE MEANING OF DEPARTMENT OF LABOR PROHIBITED
TRANSACTION CLASS EXEMPTION ("PTCE") 95-60) TO EFFECT SUCH PURCHASE AND
SATISFIES ALL OF THE REQUIREMENTS FOR EXEMPTIVE RELIEF UNDER SECTIONS I AND III
OF PTCE 95-60, WHICH OFFICER'S CERTIFICATE SHALL NOT BE AN EXPENSE OF THE
TRUSTEE OR THE DEPOSITOR.

Solely for U.S. federal income tax purposes, this Certificate represents
"residual interests" in "real estate mortgage investment conduits," as those
terms are defined in Sections 860G and 860D, respectively, of the Internal
Revenue Code of 1986, as amended.

Series 2002-6                               Percentage Interest evidenced by
                                            this Class R Certificate in the
                                            distributions to be made with
                                            respect to the Class R Certificate:
                                            100%

                                            [Additionally, the Class R
                                            Certificates are entitled to Excess
                                            Liquidation Proceeds and the
                                            Residual Distribution Amount as
                                            defined in the Pooling and
                                            Servicing Agreement.]

Class R Remittance Rate:            6.50%

Cut-Off Date:                       July 1, 2002

First Distribution Date:            August 26, 2002

Last Scheduled Distribution Date:    August 25, 2032

Class R Principal Balance as of the Cut-Off Date:    $100

                               ____________________
                                 Registered Owner          Certificate No. _____

                                       B-1

<PAGE>

                                    EXHIBIT C
                                    ---------

                                   [RESERVED]

                                       C-1

<PAGE>

                                    EXHIBIT D
                                    ---------

                                SCHEDULE OF LOANS

    See Schedule I to the Mortgage Loan Purchase Agreement, dated as of July
                 25, 2002, between the Seller and the Purchaser

                             [provided upon request]

                                       D-1

<PAGE>

                                    EXHIBIT E
                                    ---------

                           FIELDS OF LOAN INFORMATION

Deal Name
Distribution Date
Loan Number
Loan Group
City
State
Zip Code
Property Type (SFR, CONDO, etc.)
Occupancy Status (Owner, Investor, etc.)
Loan Purpose (Purchase, Refi, etc.)
Loan Type
Loan Status (Current, Foreclosure, REO, Bankruptcy)
Original Term of Loan
Amortization Term
First Payment of Loan
Maturity Date
Appraisal Value
Original LTV
Original Principal Balance
Previous Month's Balance
Current Principal Balance
Prepay Date
Prepay Status (Loan has been prepaid, liquidated or repurchased by the Servicer)
Original Scheduled P&I
Current Scheduled P&I
Scheduled Interest Amount
Scheduled Principal Amount
Curtailment
Note Rate
Paid to Date
Payment Date

                                       E-1

<PAGE>

                                    EXHIBIT F
                                    ---------

                       FORM OF TRANSFEROR CERTIFICATE FOR
                         PRIVATELY OFFERED CERTIFICATES

                                     [Date]

JPMorgan Chase Bank, as Trustee
600 Travis Street, 10th Floor
Houston, Texas 77002
Attn: Institutional Trust Services

[LaSalle Bank National Association, as Certificate Registrar
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603
Attn: Asset Backed Securities Trust Services - ABN AMRO Series 2002-6]

  Re:      Purchase of ABN AMRO Mortgage Corporation Mortgage Pass-Through
           Certificates Series 2002-6, Class [B-3] [B-4] [B-5] (the
           "Certificates")

Ladies and Gentlemen:

  In connection with our disposition of the above Certificates we certify that
(a) we understand the Certificates have not been registered under the Securities
Act of 1933, as amended (the "Act") and are being disposed by us in a
transaction that is exempt from the registration requirements of the Act, and
(b) we have not offered or sold any certificates to, or solicited offers to buy
any Certificates from, any person, or otherwise approached or negotiated with
any person with respect thereto, or taken any other action which would result in
a violation of Section 5 of the Act.

                                            Very truly yours,

                                            [Name of Transferor]

                                            By: ______________________
                                                     Authorized Officer

                                       F-1

<PAGE>

                                    EXHIBIT G
                                    ---------

                      FORM OF TRANSFEREE'S CERTIFICATE FOR
                         PRIVATELY OFFERED CERTIFICATES

                                     [Date]

JPMorgan Chase Bank
600 Travis Street, 10th Floor
Houston, Texas 77002
Attn: Institutional Trust Services

ABN AMRO Mortgage Corporation
135 South LaSalle Street
Suite 925
Chicago, Illinois 60603

[LaSalle Bank National Association, as Certificate Registrar
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603
Attn: Asset Backed Securities Trust Services - ABN AMRO Series 2002-6]

  The undersigned (the "Purchaser") proposes to purchase [Class B-3] [Class B-4]
[Class B-5] Certificates evidencing an undivided interest in ABN AMRO Mortgage
Corporation Mortgage Pass- Through Certificates, Series 2002-6 (the "Purchased
Certificates") in the principal amount of $__________. In doing so, the
Purchaser hereby acknowledges and agrees as follows:

         Section 1. Definitions. Each capitalized term used herein and not
otherwise defined herein shall have the meaning ascribed to it in the Pooling
and Servicing Agreement, dated as of July 1, 2002, between ABN AMRO Mortgage
Corporation ("AAMC"), ABN AMRO Mortgage Group, Inc., as servicer (the
"Servicer") and JPMorgan Chase Bank, as trustee (the "Trustee"), of the ABN AMRO
Mortgage Corporation Mortgage Pass-Through Certificates, Series 2002-6.

         Section 2. Representations and Warranties of the Purchaser. In
connection with the proposed transfer, the Purchaser represents and warrants to
AAMC, the Servicer, the Certificate Registrar and the Trustee that:

         (a) The Purchaser is duly organized, validly existing and in good
standing under the laws of the jurisdiction in which the Purchaser is organized,
is authorized to invest in the Purchased Certificates, and to enter into this
Agreement, and duly executed and delivered this Agreement;

         (b) The Purchaser is acquiring the Purchased Certificates for its own
account as principal and not with a view the distribution thereof, in whole or
in part;

                                       G-1

<PAGE>

         (c) The Purchaser is an "accredited investor" as such term is defined
in paragraph (a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) of Section 501 of
Regulation D under the Securities Act of 1933, as amended (the "Act"), has
knowledge of financial and business matters and is capable of evaluating the
merits and risks of an investment in the Purchased Certificates; the Purchaser
has sought such accounting, legal and tax advice as it has considered necessary
to make an informed investment decision; and the Purchaser is able to bear the
economic risk of an investment in the Purchased Certificates and can afford a
complete loss of such investment;

         (d) The Purchaser is not affiliated with the Trustee;

         (e) The Purchaser confirms that AAMC has made available to the
Purchaser the opportunity to ask questions of, and receive answers from AAMC
concerning the Trust, the purchase by the Purchaser of the Purchased
Certificates and all matters relating thereto that AAMC possesses or can acquire
without unreasonable effort or expense;

         (f) If applicable, the Purchaser has complied, and will continue to
comply, with the guidelines established by Thrift Bulletin 12 issued December
13, 1988, by the Office of Regulatory Activities of the Federal Home Loan Bank
System; and

         (g) The Purchaser will provide the Trustee and the Servicer with
affidavits substantially in the form of Exhibit A attached hereto.

         Section 3.   Transfer of Purchased Certificates.

         (a) The Purchaser understands that the Purchased Certificates have not
been registered under the Act, or any state securities laws and that no transfer
may be made unless the Purchased Certificates are registered under the Act and
under applicable state law or unless an exemption from registration is
available. The Purchaser further understands that neither AAMC nor the Trust is
under any obligation to register the Purchased Certificates or make an exemption
available. In the event that such a transfer is to be made within two years from
the Closing Date without registration under the Act or applicable state
securities laws, (i) the Trustee or the Certificate Registrar shall require, in
order to assure compliance with such laws, that the Certificateholder's
prospective transferees each certify to AAMC, the Certificate Registrar and the
Trustee as to the factual basis for the registration or qualification exemption
relied upon, and (ii) the Trustee, the Certificate Registrar or AAMC may require
an Opinion of Counsel that such transfer may be made pursuant to an exemption
from the Act and state securities laws, which Opinion of Counsel shall not be an
expense of the Trustee, the Certificate Registrar or AAMC. Any such
Certificateholder desiring to effect such transfer shall, and does hereby agree
to, indemnify the Trustee and AAMC against any liability that may result if the
Transfer is not so exempt or is not made in accordance with such federal and
state laws.

         (b) No transfer of a Purchased Certificate shall be made unless the
transferee provides AAMC, the Certificate Registrar and the Trustee with (i) a
Transferee's Agreement, substantially

                                       G-2

<PAGE>

in the form of this Agreement, and (ii) an affidavit substantially in the form
of Exhibit A hereto that the proposed transferee (x) is not an employee benefit
plan or other plan or arrangement subject to the prohibited transaction
provisions of ERISA or Section 4975 of the Internal Revenue Code of 1986, as
amended, or comparable provisions of any subsequent enactments (a "Plan"), a
trustee of any Plan, or any other Person who is using the "plan assets" of any
Plan to effect such acquisition or (y) is an insurance company, the source of
funds to be used by it to purchase the Purchased Certificates is an "insurance
company general account" (within the meaning of Department of Labor Prohibited
Transaction Class Exemption ("PTCE") 95-60), and is eligible for, and satisfies
all the requirements for, exemptive relief under Sections I and III of PTCE
95-60.

         (c) The Purchaser acknowledges that its Purchased Certificates bear a
legend setting forth the applicable restrictions on transfer.

         IN WITNESS WHEREOF, the undersigned has caused this Agreement to be
validly executed by its duly authorized representative as of the day and the
year first above written.

                                        [Purchaser]

                                        By:   _______________________________
                                              Its:

                                       G-3

<PAGE>

              Exhibit A to Form of Transferee Agreement (Exhibit G)

                             BENEFIT PLAN AFFIDAVIT
                             ----------------------

RE:      ABN AMRO MORTGAGE CORPORATION MORTGAGE PASS-THROUGH CERTIFICATES,
         SERIES 2002-6 (THE "TRUST") [CLASS B-3] [CLASS B-4] [CLASS B-5]
         CERTIFICATES (THE "PURCHASED CERTIFICATES")

         Under penalties of perjury, I, ___________________, declare that, to
the best of my knowledge and belief, the following representations are true,
correct and complete; and

         1. That I am the _________ of _________________ (the "Purchaser"),
whose taxpayer identification number is ___________, and on behalf of which I
have the authority to make this affidavit.

         2. That the Purchaser is acquiring a Purchased Certificate representing
an interest in Trust.

         3. That the Purchaser (i) is not an employee benefit plan or other plan
or arrangement subject to the prohibited transaction provisions of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA") or Section 4975 of
the Internal Revenue Code of 1986, as amended (the "Code"), or comparable
provisions of any subsequent enactments (a "Plan"), a trustee of any Plan, or
any other Person who is using the "plan assets" of any Plan to effect such
acquisition, or (ii) has provided an Officer's Certificate signed by a
Responsible Officer of the Purchaser satisfactory to ABN AMRO Mortgage
Corporation (the "Depositor"), the Certificate Registrar, and the Trustee of the
Trust stating that the Purchaser is an insurance company using assets of an
"insurance company general account" (within the meaning of Department of Labor
Prohibited Transaction Class Exemption ("PTCE") 95-60) to effect such purchase
and is eligible for, and satisfies all of the requirements for exemptive relief
under Sections I and III of PTCE 95-60, which Officer's Certificate shall not be
an expense of the Depositor or the Trustee.

         IN WITNESS WHEREOF, the Purchaser has caused this instrument to be duly
executed on its behalf, by its duly authorized officer this day of
_____________, 20 .

                                                [Purchaser]

                                                By:__________________
                                                Its:

                                       G-4

<PAGE>

         Personally appeared before me ________________, known or proved to me
to be the same person who executed the foregoing instrument and to be a
_______________ of the Purchaser, and acknowledged to me that (s)he executed the
same as his/her free act and deed and as the free act and deed of the Purchaser.

         SUBSCRIBED and SWORN to before me this __day of __________, 20   .

                                     ________________________
                                          Notary Public

                                       G-5

<PAGE>

                                    EXHIBIT H
                                    ---------

                                   [RESERVED]

                                       H-1

<PAGE>

                                    EXHIBIT I
                                    ---------

                         FORM OF TRANSFEROR CERTIFICATE

                                     [Date]

JPMORGAN CHASE BANK, AS TRUSTEE
600 TRAVIS STREET, 10TH FLOOR
HOUSTON, TEXAS 77002
ATTN: INSTITUTIONAL TRUST SERVICES

[LASALLE BANK NATIONAL ASSOCIATION, AS CERTIFICATE REGISTRAR
135 SOUTH LASALLE STREET, SUITE 1625
CHICAGO, ILLINOIS 60603
ATTN: ASSET BACKED SECURITIES TRUST SERVICES -
ABN AMRO SERIES 2002-6_________________________]

         RE:      ABN AMRO MORTGAGE CORPORATION MORTGAGE PASS-THROUGH
                  CERTIFICATES, SERIES 2002-6 CLASS R

         This letter is delivered to you in connection with the sale by
______________ (the "Seller") to _____________ (the "Purchaser") of
$____________ initial Certificate Principal Balance of Mortgage Pass-Through
Certificates, Series 2002-6, Class R (the "Certificate"), pursuant to Section
5.1 of the Pooling and Servicing Agreement (the "Pooling and Servicing
Agreement"), dated as of July 1, 2002 among ABN AMRO Mortgage Corporation, as
depositor (the "Company"), ABN AMRO Mortgage Group, Inc., as servicer (the
"Servicer"), and JPMorgan Chase Bank, as trustee (the "Trustee"). All terms used
herein and not otherwise defined shall have the meanings set forth in the
Pooling and Servicing Agreement. The Seller hereby certifies, represents and
warrants to, and covenants with the Depositor, the Servicer, the Certificate
Registrar and the Trustee that:

              1. No purpose of the Seller relating to the sale of the
Certificate by the Seller to the Purchaser is or will be to enable the Seller to
impede the assessment or collection of tax.

              2. The Seller understands that the Purchaser has delivered to the
Trustee, the Servicer, the Certificate Registrar and the Depositor a transferee
affidavit and agreement in the form attached to the Pooling and Servicing
Agreement as Exhibit J. The Seller does not know or believe that any
representation contained therein is false.

              3. The Seller has no actual knowledge that the Proposed Transferee
is not a Permitted Transferee.

                                       I-1

<PAGE>

              4. The Seller has no actual knowledge that the Purchaser would be
unwilling or unable to pay taxes due on its share of the taxable income
attributable to the Certificates.

              5. At the time of this transfer (i) the Seller has conducted a
reasonable investigation of the financial condition of the Purchaser and, as a
result of the investigation, found that the Purchaser has historically paid its
debts as they came due, and found no significant evidence to indicate that the
Purchaser will not continue to pay its debts as they come due in the future and
(ii) either (A) the Seller both (1) has determined all of the following (I) at
the time of the transfer, and at the close of each of the Purchaser's two fiscal
years preceding the year of transfer, the Purchaser's gross assets for financial
reporting purposes exceed $100 million and its net assets for such purposes
exceed $10 million (disregarding, for purposes of determining gross or net
assets, the obligation of any person related to the Purchaser within the meaning
of section 860L(g) of the Code or any other asset if a principal purpose for
holding or acquiring that asset is to permit the Purchaser to satisfy this
minimum gross asset or net asset requirement), (II) the Purchaser is a domestic
C corporation for United States federal income tax purposes that is not for such
purposes an exempt corporation, a regulated investment company, a real estate
investment trust, a REMIC, or a cooperative organization to which part I of
subchapter T of the Code applies, (III) there are no facts or circumstances on
or before the date of transfer (or anticipated) which would reasonably indicate
that the taxes associated with the Certificates will not be paid, (IV) the
Purchaser is not a foreign branch of a domestic corporation, and (V) the
transfer does not involve a transfer or assignment to a foreign branch of a
domestic corporation (or any other arrangement by which any Certificate is at
any time subject to net tax by a foreign country or U.S. possession) and the
Purchaser will not hereafter engage in any such transfer or assignment (or any
such arrangement), and (2) does not know or have reason to know that the
Purchaser will not honor the restrictions on subsequent transfers of any Class R
Certificate described in paragraph 12 and 13 of the Transferee's Transfer
Affidavit, or (B) the Seller has determined that the present value of the
anticipated tax liabilities associated with the holding of the Certificates do
not exceed the sum of (1) the present value of any consideration given to the
Purchaser to acquire the Certificates, (2) the present value of the expected
future distributions on the Certificates, and (3) the present value of the
anticipated tax savings associated with holding the Certificates as the REMIC
generates losses (having made such determination by (I) assuming that the
Purchaser pays tax at a rate equal to the highest rate of tax specified in
Section 11(b)(1) of the Code, and (II) utilizing a discount rate for present
valuation purposes equal to the applicable Federal rate prescribed by Section
1274(d) of the Code compounded semi-annually (or a lower discount rate based on
the Purchaser having demonstrated that it regularly borrows, in the course of
its trade or business, substantial funds at such lower rate from unrelated third
parties)).

                                       I-2

<PAGE>

              6. The Purchaser has represented to the Seller that, if the
Certificates constitute a noneconomic residual interest, it (i) understands that
as holder of a noneconomic residual interest it may incur tax liabilities in
excess of any cash flows generated by the interest, and (ii) intends to pay
taxes associated with its holding of the Certificates as they become due.

              7. The Seller understands that the transfer of the Certificates
may not be respected for United States income tax purposes (and the Seller may
continue to be liable for United States income taxes associated therewith)
unless there is compliance with the standards of paragraph 5. above as to any
transfer.

                                                  Very truly yours,

                                                  [Seller]

                                                  By:_________________
                                                  Name:_______________
                                                  Title:______________

                                       I-3

<PAGE>

                                    EXHIBIT J
                                    ---------

                   FORM OF TRANSFEREE AFFIDAVIT AND AGREEMENT

STATE OF              )
                      )    ss:
COUNTY OF             )

          [NAME OF OFFICER], being first duly sworn, deposes and says:

              1. That he is [Title of Officer] of [Name of Owner] (record or
beneficial owner of the Class R Certificate (the "Owner")), a [savings
institution] [corporation] duly organized and existing under the laws of [the
State of ________________] [the United States], on behalf of which he makes this
affidavit and agreement.

              2. That the Owner (i) is not and will not be a "disqualified
organization" as of the [date of transfer] within the meaning of Section
860E(e)(5) of the Internal Revenue Code of 1986, as amended (the "Code") and
will endeavor to remain other than a disqualified organization for so long as it
retains its ownership interest in the Class R Certificate, and (ii) is acquiring
the Class R Certificate for its own account or for the account of another Owner
from which it has received an affidavit and agreement in substantially the same
form as this affidavit and agreement. (For this purpose, a "disqualified
organization" means the United States, any state or political subdivision
thereof, or any agency or instrumentality of any of the foregoing (other than an
instrumentality all of the activities of which are subject to tax and, except
for the Federal Home Loan Mortgage Corporation, a majority of whose board of
directors is not selected by any such governmental entity, or any foreign
government or international organization, or any agency or instrumentality of
such foreign government or organization, any rural electric or telephone
cooperative, or any organization (other than certain farmers' cooperatives) that
is generally exempt from federal income tax unless such organization is subject
to the tax on unrelated business taxable income).

              3. That the Owner is aware (i) of the tax that would be imposed on
transfers of the Class R Certificate; (ii) that such tax would be on the
transferor, or, if such transfer is through an agent (which person includes a
broker, nominee or middleman) for a disqualified organization, on the agent;
(iii) that the person otherwise liable for the tax shall be relieved of
liability for the tax if the transferee furnished to such person an affidavit
that the transferee is not a disqualified organization and, at the time of
transfer, such person does not have actual knowledge that the affidavit is
false; and (iv) that the Class R Certificate may represent "noneconomic residual
interests" within the meaning of Treasury regulations promulgated pursuant to
the Code and that the transferor of a noneconomic residual interest will remain
liable for any taxes due with respect to the income on such residual interest,
if a significant purpose of the transfer was to enable the transferor to impede
the assessment or collection of tax.

              4. That the Owner is aware of the tax imposed on a "pass-through
entity" holding the

                                       J-1

<PAGE>

Class R Certificate if at any time during the taxable year of the pass-through
entity a disqualified organization is the record holder of an interest in such
entity. (For this purpose, a "pass-through entity" includes a regulated
investment company, a real estate investment trust or common trust fund, a
partnership, trust or estate, and certain cooperatives.)

              5. That the Owner is aware that the Trustee and the Certificate
Registrar will not register the transfer of the Class R Certificate unless the
transferee, or other transferee's agent, delivers to each of them an affidavit
and agreement, among other things, in substantially the same form as this
affidavit and agreement. The Owner expressly agrees that it will not consummate
any such transfer if it knows or believes that any of the representations
contained in such affidavit and agreement are false.

              6. That the Owner has reviewed the restrictions set forth on the
face of the Class R Certificate and the provisions of Section 5.1 of the Pooling
and Servicing Agreement under which the Class R Certificate was issued. The
Owner expressly agrees to be bound by and to comply with such restrictions and
provisions.

              7. That the Owner consents to any additional restrictions or
arrangements that shall be deemed necessary upon advice of counsel to constitute
a reasonable arrangement to ensure that the Class R Certificate will only be
owned, directly or indirectly, by an Owner that is not a disqualified
organization.

              8. The Owner's Taxpayer Identification Number is
_____________________.

              9. That no purpose of the Owner relating to the purchase of the
Class R Certificate by the Owner is or will be to enable the transferor to
impede the assessment or collection of tax.

              10. That the Owner has no present knowledge or expectation that it
will be unable to pay any United States taxes owed by it so long as any of the
Certificates remain outstanding.

              11. That the Owner has no present knowledge or expectation that it
will become insolvent or subject to a bankruptcy proceeding for so long as any
of the Certificates remain outstanding.

              12. The Owner will, in connection with any transfer that it makes
of the Class R Certificate deliver to the Certificate Registrar a representation
letter substantially in the form of Exhibit I to the Pooling and Servicing
Agreement. [The Owner hereby agrees that it will not make any transfer of any
Class R Certificate unless (i) the transfer is to an entity which is a domestic
C corporation (other than an exempt corporation, a regulated investment company,
a real estate investment trust, a REMIC, or a cooperative organization to which
part I of Subchapter T of the Code applies) for federal income tax purposes, and
(ii) the transfer is in compliance with the

                                       J-2

<PAGE>

conditions set forth in paragraph 5 of Exhibit I of the Pooling and Servicing
Agreement.]1/.

              13. The Owner (i) is a citizen or resident of the United States, a
corporation or partnership (including an entity treated as a corporation or
partnership for federal income tax purposes) created or organized in, or under
the laws of, the United States or any state thereof or the District of Columbia
(except, in the case of a partnership, to the extent provided in regulations) or
an estate whose income is subject to United States federal income tax regardless
of its source, or a trust if a court within the United States is able to
exercise primary supervision over the administration of the trust and one or
more such U.S. Persons have the authority to control all substantial decisions
of the trust and (ii) if the Owner is a partnership for U.S. federal income tax
purposes, each person or entity which holds an interest (directly or indirectly,
through a pass-through entity) is a person or entity described in (i). To the
extent prescribed in regulations by the Secretary of the Treasury, which have
not yet been issued, a trust which was in existence on August 20, 1996 (other
than a trust treated as owned by the grantor under subpart E of part 1 of
subchapter J of chapter 1 of the Code), and which was treated as a U.S. Person
on August 20, 1996 may elect to continue to be treated as a U.S. Person
notwithstanding the previous sentence.

              14. The Owner hereby agrees to cooperate with the Depositor and to
take any action required of it by the Code or Treasury regulations thereunder
(whether now or hereafter promulgated) in order to create or maintain the REMIC
status of the REMIC I or REMIC II.

              15. The Owner hereby agrees that it will not take any action that
could endanger the REMIC status of the REMIC I or REMIC II, as applicable, or
result in the imposition of tax on the REMIC I or REMIC II unless counsel for,
or acceptable to, the Depositor has provided an opinion that such action will
not result in the loss of such REMIC status or the imposition of such tax, as
applicable.

              16. The Owner as transferee of the Class R Certificate has
represented to their transferor that, if the Class R Certificate represents
noneconomic residual interests, the Owner (i) understands that as holder of a
noneconomic residual interest it may incur tax liabilities in excess of any cash
flows generated by the interest, and (ii) intends to pay taxes associated with
its holding of the Class R Certificate as they become due.

              [17. The Owner hereby represents to and for the benefit of the
transferor that (i) at the time of the transfer, and at the close of each of the
Owners's two fiscal years preceding the year of transfer, the Owners's gross
assets for financial reporting purposes exceed $100 million and its net assets
for such purposes exceed $10 million (disregarding, for purposes of determining
gross or net

--------

1/ Bracketed text to be included if the Owner is relying on the transferee's
compliance with the "Asset Test Safe Harbor" (which is generally described as
the second "safe harbor" in the Prospectus Supplement) rather then the "Formula
Test Safe Harbor" (which is generally described as the first "safe harbor" in
the Prospectus Supplement). See "Federal Income Tax Consequences--Special Tax
Considerations Applicable to the Residual Certificate" in the Prospectus
Supplement.

                                       J-3

<PAGE>

assets, the obligation of any person related to the Owner within the meaning of
section 860L(g) of the Code or any other asset if a principal purpose for
holding or acquiring that asset is to permit the Owner to satisfy this minimum
gross asset or net asset requirement), (ii) the Owner is a domestic C
corporation for United States federal income tax purposes that is not for such
purposes an exempt corporation, a regulated investment company, a real estate
investment trust, a REMIC, or a cooperative organization to which part I of
subchapter T of the Code applies, (iii) there are no facts or circumstances on
or before the date of transfer (or anticipated) which would reasonably indicate
that the taxes associated with the Class R Certificate will not be paid, and
(iv) the Owner is not a foreign branch of a domestic corporation, the transfer
does not involve a transfer or assignment to a foreign branch of a domestic
corporation (or any other arrangement by which any Class R Certificate is at any
time subject to net tax by a foreign country or U.S. possession), and the Owner
will not hereafter engage in any such transfer or assignment (or any such
arrangement).]1/

--------

1/Bracketed text to be included if the Owner is relying on the transferee's
compliance with the "Asset Test Safe Harbor" (which is generally described as
the second "safe harbor" in the Prospectus Supplement) rather then the "Formula
Test Safe Harbor" (which is generally described as the first "safe harbor" in
the Prospectus Supplement). See "Federal Income Tax Consequences--Special Tax
Considerations Applicable to the Residual Certificate" in the Prospectus
Supplement.

                                       J-4

<PAGE>

         IN WITNESS WHEREOF, the Owner has caused this instrument to be executed
on its behalf, pursuant to the authority of its Board of Directors, by its
[Title of Officer] and its corporate seal to be hereunto attached, attested by
its [Assistant] Secretary, this day of , 20 .

                                          [Name of Owner]

                                          By:   ___________________________
                                                [Name of Officer]
                                                [Title of Officer]

[Corporate Seal]

ATTEST:

[Assistant] Secretary

                                       J-5

<PAGE>

         Personally appeared before me the above-named [Name of Officer], known
or proved to me to be the same person who executed the foregoing instrument and
to be the [Title of Officer] of the Owner, and Acknowledged to me that he
executed the same as his free act and deed and free act and deed of the Owner.

         Subscribed and sworn before me this _____ day of ___________, 20__.

                                                     NOTARY PUBLIC

                                            COUNTY OF
                                            STATE OF
                                            My Commission expires the ____ day
                                            of __________, 20

                                       J-6

<PAGE>

                                    EXHIBIT K
                                    ---------

                     FORM OF ADDITIONAL MATTER INCORPORATED
                        INTO THE FORM OF THE CERTIFICATES

         This Certificate does not represent an obligation of or interest in ABN
AMRO Mortgage Corporation or any of its affiliates. Neither this Certificate nor
the underlying Loans are guaranteed by any agency or instrumentality of the
United States.

         This certifies that the above-mentioned Registered Owner is the
registered owner of certain interests in a trust fund (the "Certificate Trust
Fund") whose assets consist of, among other things, a pool (the "Mortgage Pool")
of conventional one- to four-family mortgage loans (the "Loans"), formed by ABN
AMRO Mortgage Corporation (the "Depositor"). The Loans were originated or
acquired by various financial institutions and subsequently acquired by the
Depositor. The Mortgage Pool was created pursuant to a Pooling and Servicing
Agreement, dated as of the Cut-Off Date stated above (the "Pooling Agreement"),
between the Depositor, ABN AMRO Mortgage Group, Inc., as Servicer (the
"Servicer"), and JPMorgan Chase Bank, as Trustee (the "Trustee"), a summary of
certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Pooling Agreement. Nothing herein shall be deemed inconsistent
with such meanings, and in the event of any conflict between the Pooling
Agreement and the terms of this Certificate, the Pooling Agreement shall
control. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Pooling Agreement, to which Pooling Agreement
the Holder of this Certificate, by virtue of the acceptance hereof, assents and
by which such Holder is bound.

         Distributions will be made, pursuant to the Pooling Agreement, on the
25th day of each month or, if such 25th day is not a Business Day, the Business
Day immediately following (the "Distribution Date"), commencing on the first
Distribution Date specified above, to the Person in whose name this Certificate
is registered at the close of business on the last Business Day of the month
immediately preceding the month of such distribution (the "Record Date"), to the
extent of such Certificateholder's Percentage Interest represented by this
Certificate in the portion of the Certificate Distribution Amount for such
Distribution Date then distributable on the Certificates of this Class, as
specified in Section 4.1 of the Pooling Agreement.

         Distributions on this Certificate will be made by the Trustee or its
Paying Agent by wire transfer or by other means of payment acceptable to each
Certificateholder of record on the immediately preceding Record Date.
Notwithstanding the above, the final distribution on this Certificate will be
made after due notice by the Trustee or its Paying Agent of the pendency of such
distribution and only upon presentation and surrender of this Certificate to the
Certificate Registrar.

         Reference is hereby made to the further provisions of this Certificate
set forth below, which further provisions shall for all purposes have the same
effect as if set forth at this place.

                                       K-1

<PAGE>

         Unless the certificate of authentication hereon has been executed by or
on behalf of the Trustee, by manual signature, this Certificate shall not be
entitled to any benefit under the Pooling Agreement or be valid for any purpose.

                                       K-2

<PAGE>

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

                                            JPMORGAN CHASE BANK, as Trustee

                                            By:      ___________________________

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Certificates referred to in the within-mentioned
Pooling Agreement.

JPMORGAN CHASE BANK,
as Trustee

By:      _____________________
Dated:   _____________________

                                       K-3

<PAGE>

                          ABN AMRO MORTGAGE CORPORATION
                        MORTGAGE PASS-THROUGH CERTIFICATE

         This Certificate is one of a duly authorized issue of Certificates
designated as Mortgage Pass- Through Certificates of the Series and Class
specified hereon (herein called the "Certificates") and representing certain
interests in the Certificate Trust Fund.

         The Certificates do not represent an obligation of, or an interest in,
the Depositor or any of its affiliates and are not insured or guaranteed by any
governmental agency. The Certificates are limited in right of payment to certain
collections and recoveries respecting the Loans, all as more specifically set
forth herein and in the Pooling Agreement. To the extent described in the
Pooling Agreement, the Servicer is obligated to advance its own funds to cover
certain shortfalls with respect to payments on the Loans. In the event Servicer
funds are advanced with respect to any Loan, such advance is reimbursable to the
Servicer from the related recoveries on such Loan or from other cash deposited
in the Custodial Account for P&I to the extent that such advance is not
otherwise recoverable.

         As provided in the Pooling Agreement, withdrawals from the Custodial
Account for P&I may be made by the Servicer from time to time for purposes other
than distributions to Certificateholders, such purposes including reimbursement
to the Servicer of advances made, or certain expenses incurred, by it.

         The Pooling Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the Servicer, and the rights of the
Certificateholders under the Pooling Agreement at any time by the Depositor and
the Trustee, with the consent of the Holders of the Certificates aggregating not
less than 66-2/3% of the aggregate Percentage Interest evidenced by all of the
Certificates of the Trust Fund. For the purposes of such provision and except as
provided below, voting rights related to 100% of the Aggregate Certificate
Principal Balance of any Class will be allocated pro rata (by Certificate
Principal Balance) among the Certificates of such Class. Any such consent by the
Holder of this Certificate shall be conclusive and binding on such Holder and
upon all future Holders of this Certificate and of any Certificate issued upon
the transfer hereof or in exchange hereof or in lieu hereof whether or not
notation of such consent is made upon this Certificate. The Pooling Agreement
also permits the amendment thereof, in certain limited circumstances, without
the consent of the Holders of any of the Certificates.

         As provided in the Pooling Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Certificate Register upon surrender of this Certificate for registration of
transfer at the offices of the Certificate Registrar or the office maintained by
the Trustee in the City and State of New York, duly endorsed by, or accompanied
by an assignment in the form below or other written instrument of transfer in
form satisfactory to the Trustee or any Authenticating Agent duly executed by,
the Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates of Authorized Denominations evidencing
the

                                       K-4

<PAGE>

same Percentage Interest set forth hereinabove will be issued to the designated
transferee or transferees.

         No transfer of a Certificate will be made unless such transfer is
exempt from or is made in accordance with the registration requirements of the
Securities Act of 1933, as amended (the "Securities Act") and any applicable
state securities laws. No transfer, sale, pledge or other disposition of a Class
R Certificate shall be made unless such transfer, sale, pledge or other
disposition is made in accordance with Section 5.1(c) or Section 5.1(d) of the
Pooling Agreement. No transfer, sale, pledge or other disposition of a Junior
Subordinate Certificate shall be made unless such transfer, sale, pledge or
other disposition is made in accordance with Section 5.12 and the restrictions
set forth in the legend referred to in Section 5.13 of the Pooling Agreement and
the legends contained herein. Each Person who, at the time, acquires any
ownership interest in any Junior Subordinate Certificate shall be deemed by the
acceptance or acquisition of such ownership interest to have agreed to be bound
by the provisions of such Section 5.12.

         The Certificates are issuable only as registered Certificates without
coupons in Authorized Denominations specified in the Pooling Agreement. As
provided in the Pooling Agreement and subject to certain limitations therein set
forth, Certificates are exchangeable for new Certificates of Authorized
Denominations evidencing the same aggregate interest in the portion of the
Available Distribution Amount distributable on this Class of Certificate, as
requested by the Holder surrendering the same.

         A reasonable service charge may be made for any such registration of
transfer or exchange, and the Trustee or the Certificate Registrar may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

         The Depositor, the Certificate Registrar, the Certificate
Administrator, the Servicer, the Trustee and any agent of any of them may treat
the Person in whose name this Certificate is registered as the owner hereof for
all purposes, and neither the Depositor, the Certificate Registrar, the
Certificate Administrator, the Servicer, the Trustee nor any such agent shall be
affected by notice to the contrary.

         The respective obligations and responsibilities of the Servicer and the
Trustee created under the Pooling Agreement (other than the obligation to make
payments to Certificateholders as set forth therein) shall terminate upon the
earlier of (i) the later of the final payment or other liquidation (or any
Advance with respect thereto) of the last Loan remaining in the Trust Fund and
the disposition of all property acquired in respect of any Loan or (ii) the
purchase by the Servicer of all Loans at a price established pursuant to the
Pooling Agreement; PROVIDED, HOWEVER, that in no event shall the trust created
hereby continue beyond 21 years from the death of the survivor of certain
persons identified in the Pooling Agreement.

                                       K-5

<PAGE>

                                   ASSIGNMENT

         FOR VALUE RECEIVED the undersigned hereby sell(s) and assign(s) and
transfer(s) unto _______________________________________________________________
________________________________________________________________________________
(Please print or typewrite name and address, including postal zip code of
assignee. Please insert social security or other identifying number of
assignee.)

the within Mortgage Pass-Through Certificate and hereby irrevocably constitutes
and appoints ___________________________ Attorney to transfer said Certificate
on the Certificate Register, with full power of substitution in the premises.

Dated:________________              ______________________________
                            ___________ Signature Guaranteed

                                   _________________________________________
                                        ______________________________
                                        NOTICE:

                                        The signature to this assignment must
                                        correspond with the name as written upon
                                        the face of the within instrument in
                                        every particular, without alteration or
                                        enlargement or any change whatever.

                                       K-6

<PAGE>

                                    EXHIBIT L
                                    ---------

                   FORM OF RULE 144A INVESTMENT REPRESENTATION

             Description of Rule 144A Securities, including numbers:

                        _________________________________
                        _________________________________
                        _________________________________
                        _________________________________

The undersigned seller, as registered holder (the "Seller"), intends to transfer
the Rule 144A Securities described above to the undersigned buyer (the "Buyer").

              1. In connection with such transfer and in accordance with the
agreements pursuant to which the Rule 144A Securities were issued, the Seller
hereby certifies the following facts: Neither the Seller nor anyone acting on
its behalf has offered, transferred, pledged, sold or otherwise disposed of the
Rule 144A Securities, any interest in the Rule 144A Securities or any other
similar security to, or solicited any offer to buy or accept a transfer, pledge
or any disposition of the Rule 144A Securities, any interest in the Rule 144A
Securities or any other similar security from, or otherwise approached or
negotiated with respect to the Rule 144A Securities, any interest in the Rule
144A Securities or any other similar security with, any person in any manner, or
made any general solicitation by means of general advertising or in any other
manner, or taken any other action, that would constitute a distribution of the
Rule 144A Securities under the Securities Act of 1933, as amended (the "1933
Act"), or that would render the disposition of the Rule 144A Securities in
violation of Section 5 of the 1933 Act or require registration pursuant thereto,
and that the Seller has not offered the Rule 144A Securities to any person other
than the Buyer or another "qualified institutional buyer" as defined in Rule
144A under the 1933 Act.

              2. The Buyer warrants and represents to, and covenants with, the
Seller, the Trustee, the Certificate Registrar and the Servicer (as defined in
the Pooling and Servicing Agreement (the "Agreement") dated as of July 1, 2002
between ABN AMRO Mortgage Corporation, as Depositor, ABN AMRO Mortgage Group,
Inc., as Servicer, and JPMorgan Chase Bank, as Trustee) pursuant to Section
5.1(f) of the Agreement, as follows:

                      (a) The Buyer understands that the Rule 144A Securities
have not been registered under the 1933 Act or the securities laws of any state.

                      (b) The Buyer considers itself a substantial,
sophisticated institutional investor having such knowledge and experience in
financial and business matters that it is capable of evaluating the merits and
risks of investment in the Rule 144A Securities.

                      (c) The Buyer has received and reviewed the Private
Placement Memorandum

                                       L-1

<PAGE>

dated as of July 25, 2002 relating to the Rule 144A Securities and has been
furnished with all information regarding the Rule 144A Securities that it has
requested from the Seller, the Trustee, the Depositor or the Servicer.

                      (d) Neither the Buyer nor anyone acting on its behalf has
offered, transferred, pledged, sold or otherwise disposed of the Rule 144A
Securities, any interest in the Rule 144A Securities or any other similar
security to, or solicited any offer to buy or accept a transfer, pledge or other
disposition of the Rule 144A Securities, any interest in the Rule 144A
Securities or any other similar security from, or otherwise approached or
negotiated with respect to the Rule 144A Securities, any interest in the Rule
144A Securities or any other similar security with, any person in any manner, or
made any general solicitation by means of general advertising or in any other
manner, or taken any other action, that would constitute a distribution of the
Rule 144A Securities under the 1933 Act or that would render the disposition of
the Rule 144A Securities a violation of Section 5 of the 1933 Act or require
registration pursuant thereto, nor will it act, nor has it authorized or will it
authorize any person to act, in such manner with respect to the Rule 144A
Securities.

                      (e) The Buyer is a "qualified institutional buyer" as that
term is defined in Rule 144A under the 1933 Act and has (1) completed either of
the forms of certification to that effect attached hereto as Annex 1 or Annex 2,
or (2) obtained the waiver of the Depositor with respect to Annex 1 and Annex 2
pursuant to Section 5.1(f) of the Agreement. The Buyer is aware that the sale to
it is being made in reliance on Rule 144A. The Buyer is acquiring the Rule 144A
Securities for its own account or the accounts of other qualified institutional
buyers, understands that such Rule 144A Securities may be resold, pledged or
transferred only (i) to a person reasonably believed to be a qualified
institutional buyer that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that the resale, pledge or
transfer is being made in reliance on Rule 144A, or (ii) pursuant to another
exemption from registration under the 1933 Act.

                      (f) The Buyer is not affiliated with (i) the Trustee or
(ii) any Rating Agency that rated the Rule 144A Securities.

                      (g) If applicable, the Buyer has complied, and will
continue to comply, with the guidelines established by Thrift Bulletin 12 issued
December 13, 1988, by the Office of Regulatory Activities of the Federal Home
Loan Bank System.

         [Required only in the case of a transfer of a Class B-3, Class B-4,
Class B-5 Certificate][3. The Buyer warrants and represents to, and covenants
with, the Seller, the Servicer, the Certificate Registrar and the Depositor that
(1) the Buyer is not an employee benefit plan (within the meaning of Section
3(3) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA")), subject to the prohibited transaction provisions of ERISA ("Plan"),
or a plan (within the meaning of Section 4975(e)(1) of the Internal Revenue Code
of 1986 ("Code")) subject to Section 4975 of the Code (also a "Plan"), and the
Buyer is not directly or indirectly purchasing the Rule 144A Securities on
behalf of, as investment manager of, as named fiduciary of, as trustee of, or
with "plan assets" of any Plan, or (2) the Buyer has provided the Seller, the
Servicer, the Certificate Registrar

                                       L-2

<PAGE>

and the Depositor with an Officer's Certificate signed by a Responsible Officer
of the Buyer stating that the Buyer is an insurance company using assets of an
"insurance company general account" (within the meaning of Department of Labor
Prohibited Transaction Class Exemption ("PTCE") 95- 60) to effect such purchase
and is eligible for, and satisfies all of the requirements for exemptive relief
under Sections I and III of PTCE 95-60, which Officer's Certificate shall not be
an expense of the Servicer or the Depositor.]

              3. This document may be executed in one or more counterparts and
by the different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same document.

                                       L-3

<PAGE>

         IN WITNESS WHEREOF, each of the parties has executed this document as
of the date set forth below.

     ____________________________                    ___________________________
         Print Name of Seller                             Print Name of Buyer

By:      __________________________                  By:________________________
         Name:                                       Name:
         Title:                                      Title:

Taxpayer Identification                              Taxpayer Identification
No.:_________________________                        No.:_______________________
Date:________________________                        Date:______________________

                                       L-4

<PAGE>

                                                            Annex 1 to Exhibit L

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

             [For Buyers Other Than Registered Investment Companies]

         The undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

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

              2. In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested
on a discretionary basis $__________2/ in securities (except for the excluded
securities referred to below) as of the end of the Buyer's most recent fiscal
year (such amount being calculated in accordance with Rule 144A) and (ii) the
Buyer satisfies the criteria in the category marked below.

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

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

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

--------

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

                                     L-1-1

<PAGE>

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

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

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

         _____        ERISA PLAN. The Buyer is an employee benefit plan within
                      the meaning of Section 3(3) of the Employee Retirement
                      Income Security Act of 1974, as amended ("ERISA") and is
                      subject to the fiduciary responsibility provisions of
                      ERISA.

         _____        INVESTMENT ADVISER. The Buyer is an investment adviser
                      registered under the Investment Advisers Act of 1940.

         _____        SBIC. The Buyer is a Small Business Investment Company
                      licensed by the U.S. Small Business Administration under
                      Section 301(c) or (d) of the Small Business Investment Act
                      of 1958.

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

         _____        TRUST FUND. The Buyer is a trust fund whose trustee is a
                      bank or trust company and whose participants are
                      exclusively (a) plans established and maintained by a
                      State, its political subdivision, or any agency or
                      instrumentality of the State or its political subdivision,
                      for the benefit of its employees, or (b) employee benefit
                      plans within the meaning of Title I of the Employee
                      Retirement Income Security Act of 1974, but is not a trust
                      fund that includes as participants individual retirement
                      accounts or H.R. 10 plans.

                  3. The term "SECURITIES" as used herein DOES NOT INCLUDE (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer, (iii) bank deposit notes and certificates of deposit, (iv) loan
participations, (v) repurchase agreements, (vi) securities owned but subject to
a repurchase agreement and (vii) currency, interest rate and commodity swaps.

                                      L-1-2

<PAGE>

                  4. For purposes of determining the aggregate amount of
securities owned and/or invested on a discretionary basis by the Buyer, the
Buyer used the cost of such securities to the Buyer and did not include any of
the securities referred to in the preceding paragraph. Further, in determining
such aggregate amount, the Buyer may have included securities owned by
subsidiaries of the Buyer, but only if such subsidiaries are consolidated with
the Buyer in its financial statements prepared in accordance with generally
accepted accounting principles and if the investments of such subsidiaries are
managed under the Buyer's direction. However, such securities were not included
if the Buyer is a majority-owned, consolidated subsidiary of another enterprise
and the Buyer is not itself a reporting company under the Securities Exchange
Act of 1934.

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

                     _______________    Will the Buyer be purchasing the Rule
                     Yes          No    144A Securities only for the Buyer's own
                                        account?

                  6. If the answer to the foregoing question is "no", the Buyer
agrees that, in connection with any purchase of securities sold to the Buyer for
the account of a third party (including any separate account) in reliance on
Rule 144A, the Buyer will only purchase for the account of a third party that at
the time is a "qualified institutional buyer" within the meaning of Rule 144A.
In addition, the Buyer agrees that the Buyer will not purchase securities for a
third party unless the Buyer has obtained a current representation letter from
such third party or taken other appropriate steps contemplated by Rule 144A to
conclude that such third party independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

                  7. The Buyer will notify each of the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of Rule 144A Securities will
constitute a reaffirmation of this certification as of the date of such
purchase.

                                          ______________________________________
                                                    Print Name of Buyer

                                          By:___________________________________
                                                   Name:
                                                   Title:

                                          Date:_________________________________

                                      L-1-3

<PAGE>

                                                            Annex 2 to Exhibit L

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

              [For Buyers That Are Registered Investment Companies]

         The undersigned hereby certifies as follows in connection with the Rule
144A Investment Representation to which this Certification is attached:

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

                  2. In connection with purchases by Buyer, the Buyer is a
"qualified institutional buyer" as defined in SEC Rule 144A because (i) the
Buyer is an investment company registered under the Investment Company Act of
1940, and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used.

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

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

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

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

                  5. The Buyer is familiar with Rule 144A and understands that
each of the parties

                                      L-2-1

<PAGE>

to which this certification is made are relying and will continue to rely on the
statements made herein because one or more sales to the Buyer will be reliance
on Rule 144A. In addition, the Buyer will only purchase for the Buyer's own
account.

                  6. The undersigned will notify each of the parties to which
this certification is made of any changes in the information and conclusions
herein. Until such notice, the Buyer's purchase of Rule 144A Securities will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

                                          ______________________________________
                                                    Print Name of Buyer

                                          By:___________________________________
                                                   Name:
                                                   Title:

                                          Date:_________________________________

                                          IF AN ADVISER

                                          ______________________________________
                                                    Print Name of Buyer

                                          By:___________________________________
                                                   Name:
                                                   Title:

                                          Date:_________________________________

(SEAL)

                                      L-2-2

<PAGE>

                                    EXHIBIT M
                                    ---------

                                   [RESERVED]

                                       M-1

<PAGE>

                                    EXHIBIT N
                                    ---------

                                   [RESERVED]

                                       N-1

<PAGE>

                                    EXHIBIT O
                                    ---------

                                   [RESERVED]

                                       O-1

<PAGE>

                                    EXHIBIT P
                                    ---------

                                   [RESERVED]

                                       O-2

<PAGE>

                                    EXHIBIT Q
                                    ---------

                                 BLOOMBERG DATA

Loan Number
Property Type
Owner Occupied
Loan Purpose
Loan Type
Loan Group
Current Interest Rate
Original Balance
Current Balance
First Payment Date
Maturity Date
Current PNI
Servicing Fee
Loan Term
Foreclosure/REO
Loan to Value Ratio
State Code
Interest Paid to Date
Zip Code
PIF Data
Amortized Remaining Term

                                       Q-1

<PAGE>

                                    EXHIBIT R
                                    ---------

                       FORM OF SPECIAL SERVICING AGREEMENT
                       -----------------------------------

       This SPECIAL SERVICING AGREEMENT (the "AGREEMENT") is made and entered
into as of ____________ 1, 20__, between _______________, as seller and master
servicer (the "COMPANY"), _______________, as holder of the Class B Certificates
identified on Schedule I (the "CLASS B HOLDER") and _______________, [an
affiliate of the Class B Holder,] as special servicer (the "SPECIAL SERVICER").

                              PRELIMINARY STATEMENT
                              ---------------------

       WHEREAS, the Class B Holder is the holder of at least 75% of each the
classes of Mortgage Pass- Through Certificates (each a "CLASS B CERTIFICATE") of
the series of issuances (each a "SERIES") issued by the Company identified on
Schedule I attached hereto (such Schedule I, as may be modified or amended to
reflect (i) the purchase from time to time by the Class B Holder of interests in
any class of Class B Certificates of a Series such that the Class B Holder owns
not less than 75% of the then outstanding Certificate Principal Balance of such
Class B Certificates and (ii) the sale from time to time of the Class B Holder
of interests in any class of Class B Certificates of a Series such that the
Class B Holder owns less than 75% of the then outstanding Certificate Principal
Balance of such Class B Certificates, the "SCHEDULE I").

       WHEREAS, each of the Class B Certificates was issued by the Company
pursuant to the Pooling and Servicing Agreement or Agreements (each a "POOLING
AND SERVICING AGREEMENT") identified on Schedule I and evidences an ownership
interest in a pool of Mortgage Loans.

       WHEREAS, the Company is the Master Servicer of the Mortgage Loans related
to each Series and the Mortgage Loans are serviced in accordance with the
applicable Pooling and Servicing Agreement [and the Company's [Servicer Guide]
(the "SERVICER GUIDE")].

       WHEREAS, in connection with the purchase by Class B Holder of a Series of
Class B Certificates (whether owned by the Class B Holder on the date hereof or
purchased by the Class B Holder at any time in the future), the Class B Holder
and the Company have agreed that (i) the Class B Holder, if it owns 75% of the
most subordinate outstanding class of Class B Certificates of a Series
(calculated by dividing the then outstanding Certificate Principal Balance of
such Class B Certificates by the then outstanding Certificate Principal Balance
of all certificates of the same class) may elect to have certain Mortgage Loans
with respect to the related Series that become 90 or more days delinquent (each
such Mortgage Loan, a "DELINQUENT MORTGAGE LOAN") serviced by the Special
Servicer (each such Delinquent Mortgage Loan, a "SPECIALLY SERVICED MORTGAGE
LOAN"), and (ii) with respect to Delinquent Mortgage Loans other than Specially
Serviced Mortgage Loans, the Company will provide to the Class B Holder such
information as is generated [pursuant to the terms of the Servicer Guide] by the
Company or a subservicer with respect to such Delinquent Loan.

       NOW THEREFORE, in consideration of the premises and mutual agreements
hereinafter set forth, the Company, the Class B Holder and the Special Servicer
hereby agree as follows:

                                    ARTICLE I
                                    ---------

                                   DEFINITIONS
                                   -----------

       Section 1.01      DEFINITIONS INCORPORATED BY REFERENCE.

                                       R-1

<PAGE>

       Capitalized terms used but not otherwise defined in this Agreement shall
have the respective meaning ascribed thereto as set forth in the related Pooling
and Servicing Agreement [or the Servicer Guide, as the context may require].

                                   ARTICLE II
                                   ----------

          DESIGNATION OF SPECIALLY SERVICED MORTGAGE LOANS AND SPECIAL
          ------------------------------------------------------------
                              SERVICING PROCEDURES
                              --------------------

       Section 2.01 [Approval of _______________ as an Approved Servicer under
the Servicer Guide.

       The Company hereby approves _______________ as an approved servicer for
all purposes under the terms of the Servicer Guide.]

       Section 2.02 SPECIALLY SERVICED MORTGAGE LOANS.

       To the extent and for so long as the Class B Certificates of a Series are
outstanding and the Class B Holder owns at least 75% of the most subordinate
outstanding class of the Class B Certificates of such Series (calculated by
dividing the then outstanding Certificate Principal Balance of such Class B
Certificates by the then outstanding Certificate Principal Balance of all
certificates of the same class), Delinquent Mortgage Loans of the related Series
may, at the option of the Class B Holder, be designated in writing by the Class
B Holder as Specially Serviced Mortgage Loans and transferred to the Special
Servicer for servicing. The Special Servicer shall service the Specially
Serviced Mortgage Loans in accordance with the terms of the related Pooling and
Servicing Agreement [and the Servicer Guide].

       Following the designation of a Delinquent Mortgage Loan as a Specially
Serviced Loan, the Company shall transfer servicing of such Delinquent Mortgage
Loan to the Special Servicer substantially in the manner set forth herein and in
Schedule II hereto. [The parties hereto agree that any fees resulting from the
transfer of the servicing of a Delinquent Mortgage Loan from the Company or a
subservicer to the Special Servicer (or any successor thereto) shall be the
obligation of the Company.]

       As of the Effective Date (as defined below) of each Specially Serviced
Mortgage Loan, the Special Servicer shall succeed to and undertake all rights,
duties and obligations of the prior servicer (including, without limitation, the
making of advances, any right to purchase such Specially Serviced Mortgage Loan
at the purchase price set forth in the related Pooling and Servicing Agreement
and the right to receive the servicing fee with respect to such Specially
Serviced Mortgage Loan) pursuant to and in accordance with the terms of the
related Pooling and Servicing Agreement [and the terms and conditions of the
Servicer Guide].

       With respect to each Specially Serviced Mortgage Loan, the effective date
(the "EFFECTIVE DATE") shall be the first day of the month immediately following
the month of designation of such Specially Serviced Mortgage Loan as such,
provided that such written designation is received by the Company on or prior to
the 15th calendar day of such month.

       Once a Delinquent Mortgage Loan becomes a Specially Serviced Mortgage
Loan, such Delinquent Mortgage Loan shall remain a Specially Serviced Mortgage
Loan, and shall continue to be serviced by the Special Servicer, until the
earlier of the liquidation or other disposition of such Specially Serviced
Mortgage Loan or the termination of this Agreement, regardless of delinquency
status, whether the related Mortgaged Property becomes an REO Property or
otherwise; provided, however, that if the Company exercises its right as Master
Servicer to purchase all of the Mortgage Loans in a Trust Fund pursuant to an
optional termination

                                      R-2
<PAGE>

provision under the related Pooling and Servicing Agreement, the servicing of
any related Specially Serviced Mortgage Loans with respect to which foreclosure
proceedings have not been commenced shall be transferred promptly by the Special
Servicer in accordance with written instructions from the Company.

       If the Class B Holder (i) transfers such percentage interest in any Class
B Certificates of a Series such that the Class B Holder owns less than 75% of
the then outstanding Certificate Principal Balance of such class, or (ii)
purchases such percentage interest in any Class B Certificates of a Series such
that the Class B Holder owns 75% or more of the then outstanding Certificate
Principal Balance of such class, the Class B Holder shall promptly notify the
Company and the Special Servicer in writing of any such transfer or acquisition.
Upon receipt of written notice from the Class B Holder, the Company or the Class
B Holder shall revise Schedule I hereto to reflect any such transfer or
acquisition and shall forward promptly a copy of such revised schedule to the
Company or the Class B Holder, as applicable, and the Special Servicer. With
respect to the purchase of at least 75% of the Class B Certificates of any
Series by the Class B Holder after the date hereof, this Agreement shall be
effective as of the date such written notice of acquisition is received by the
Company.

       If and to the extent the Company is permitted to purchase Delinquent
Mortgage Loans under the related Pooling and Servicing Agreement, the Class B
Holder may direct the Company to purchase any Specially Serviced Mortgage Loan
and to promptly resell such Mortgage Loan to the Class B Holder at the price and
on the terms set forth in such Pooling and Servicing Agreement. In the event the
Class B Holder directs the Company to purchase a Specially Serviced Mortgage
Loan as permitted under this Section, the Company shall promptly take all action
necessary under the terms of the related Pooling and Servicing Agreement in
order to accomplish such purchase (i.e. provide notification to the Trustee
and/or Custodian) and to resell such Specially Serviced Mortgage Loan to the
Class B Holder. The Class B Holder, and not the Company, shall be required to
remit the purchase price for such Specially Serviced Mortgage Loan to the
related Trustee. The Company will inform the Trustee in writing of the purchase
of such Specially Serviced Mortgage Loan by the Class B Holder and further shall
promptly take all actions necessary or desirable to effect the conveyance of
such Mortgage Loan and the related servicing rights to the Class B Holder or its
designee, time being of the essence.

       Notwithstanding any provision herein to the contrary, the Special
Servicer shall (i) in no event be obligated to effect any cure or remedy in
connection with a deficiency in the documentation for any Specially Serviced
Mortgage Loan to the extent such deficiency existed at the time such Mortgage
Loan became a Specially Serviced Mortgage Loan or (ii) have any responsibility
for any obligations, duties, or liabilities of the Company with respect to the
servicing of a Specially Serviced Mortgage Loan that arose prior to the related
Effective Date for such Specially Serviced Mortgage Loan, other than those which
would customarily be assumed after the Effective Date.

       Section 2.03      TERMINATION OF SPECIAL SERVICER FOR DEFAULT.

       The Company shall have the right, immediately upon written notice, to
terminate the Special Servicer's right and obligation to subservice all of the
Specially Serviced Mortgage Loans hereunder in the event (each such event, an
"EVENT OF DEFAULT") of:

       (i) any failure by the Special Servicer to remit to the Company for
distribution to the Certificateholders of a Series any payment (including
without limitation, any failure to make any required Advance) required to be
made under the terms of this Agreement or the related Pooling and Servicing
Agreement which continues unremedied for a period of one day after the date upon
which written notice of such failure, requiring the same to be remedied, shall
have been given to the Special Servicer by the Company; or

                                      R-3
<PAGE>

       (ii) any failure on the part of the Special Servicer duly to observe or
perform in any material respect any other of the covenants or agreements on the
part of the Special Sub-Servicer contained in this Agreement (including any
breach of the Special Servicer's representations and warranties contained in
Section 4.03 hereof, which materially and adversely affects the interests of the
Certificateholders of a Series) which continues unremedied for a period of 30
days after the date on which written notice of such failure, requiring the same
to be remedied, shall have been given to the Special Servicer by the Company; or

       (iii) a decree or order of a court or agency or supervisory authority
having jurisdiction in an involuntary case under any present or future federal
or state bankruptcy, insolvency or similar law or the appointment of a
conservator or receiver or liquidator in any insolvency, readjustment of debt,
marshaling of assets and liabilities or similar proceedings, or for the
winding-up or liquidation of its affairs, shall have been entered against the
Special Servicer and such decree or order shall have remained in force
undischarged or unstayed for a period of 60 consecutive days; or

       (iv) the Special Servicer shall consent to the appointment of a
conservator or receiver or liquidator in any insolvency, readjustment of debt,
marshaling of assets and liabilities or similar proceedings of or relating to
the Special Servicer or of or relating to all or substantially all of its
property; or

       (v) the Special Servicer shall admit in writing its inability to pay its
debts generally as they become due, file a petition to take advantage of or
otherwise voluntarily commence a case or proceeding under any applicable
bankruptcy, insolvency, reorganization or other similar statute, make an
assignment for the benefit of its creditors, or voluntarily suspend payment of
its obligations.

       If an Event of Default shall occur, then, and in each and every such
case, upon receipt of written notice from the Company, the Special Servicer
shall immediately remit to the Company all amounts in the Collection Accounts
and the Escrow Accounts and all rights of the Special Servicer to service the
Specially Serviced Mortgage Loans shall terminate. Following the receipt of
written notice from the Company as provided above, all authority and power of
the Special Sub-Servicer to subservice all the Specially Serviced Mortgage Loans
shall pass to and be vested in the Company pursuant to and under this Section
2.03, and the Special Servicer shall do all things necessary to effect a
transfer of the servicing rights back to the Company. In this regard, the
Company is hereby authorized and empowered to execute and deliver, on behalf of
the Special Servicer, as attorney-in-fact or otherwise, any and all documents
and other instruments, and to do or accomplish all other acts or things
necessary or appropriate to effect the purposes of such notice of termination,
whether to complete the transfer and endorsement or assignment of the affected
Specially Serviced Mortgage Loans and related documents, or otherwise. The
Special Servicer agrees to cooperate with the Company in implementing the
termination of the Special Servicer's responsibilities and rights hereunder,
including, without limitation, the transfer to the Company or its appointed
agent for administration by it of all amounts in the possession of the Special
Servicer or thereafter be received with respect to the Specially Serviced
Mortgage Loans and the transfer of the] servicing rights back to the Company.

       Section 2.04      APPOINTMENT OF SUCCESSOR SPECIAL SERVICER.

       The Class B Holder shall have the right, upon 90 days prior written
notice to the Company and the Special Servicer appoint a successor special
servicer having the characteristics set forth in clauses (i), (ii) and (iii)
below, and which shall succeed to all rights and assume all of the
responsibilities, duties and liabilities of the Special Servicer under this
Agreement simultaneously with the termination of the Special Servicer's
responsibilities, duties and liabilities under this Agreement. In the event that
the Special Servicer's duties, responsibilities and liabilities under this
Agreement should be terminated pursuant to the foregoing, the Special Servicer
shall discharge such duties and responsibilities during the period from the

                                       R-4

<PAGE>

date it acquires knowledge of such termination until the effective date thereof
with the same degree of diligence and prudence which it is obligated to exercise
under this Agreement, and shall take no action whatsoever that might impair or
prejudice the rights or financial condition of its successor. The removal of the
Special Servicer shall not become effective until a successor shall be appointed
pursuant to this Section and shall in no event relieve the Special Servicer of
the representations and warranties made pursuant to Section 4.03 and the
remedies available to the Class B Holder and/or the Company under Sections 4.04
and 5.01, it being understood and agreed that the provisions of such Sections
4.04 and 5.01 shall be applicable to the Special Servicer notwithstanding any
such termination of it, or the termination of this Agreement.

       Any successor special servicer shall (i) [be an institution having a net
worth of not less than $1,000,000][meet the eligibility requirements of an
approved servicer under the Company's Servicer Guide], (ii) the appointment of
such successor servicer will not result in the downgrading in any rating by any
applicable rating agency of any security issued in connection with the
applicable Pooling and Servicing Agreements, and (iii) have and keep in full
effect its existence, rights and franchises as a corporation (or such other
corporate form), and shall obtain its qualification to do business as a foreign
corporation (or such other corporate form) in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Agreement or any of the Specially Serviced Mortgage Loans
and to perform its duties under this Agreement. Any successor appointed as
provided herein shall execute, acknowledge and deliver to the Class B Holder and
the Company an instrument accepting such appointment, wherein the successor
shall make the representations and warranties set forth in Section 4.03,
whereupon such successor shall become fully vested with all the rights, powers,
duties, responsibilities, obligations and liabilities of the Special Servicer,
with like effect as if originally named as a party to this Agreement.

       Within 30 days of the appointment of a successor special servicer by the
Class B Holder, the Special Servicer shall prepare, execute and deliver to the
successor entity any and all documents and other instruments, place in such
successor's possession all servicing files related to the Specially Serviced
Mortgage Loans, and do or cause to be done all other acts or things necessary or
appropriate to effect the purposes of such notice of termination [, including
but not limited to the transfer and endorsement of the related Mortgage Notes
and other documents, and the Class B Holder shall do or cause to be done the
preparation and recordation of Assignments of Mortgage and Deeds at the Class B
Holder's sole expense].

       The Special Servicer shall cooperate with the Class B Holder and such
successor in effecting the termination of the Special Servicer's
responsibilities and rights hereunder and the transfer of servicing
responsibilities to the successor special servicer, including without
limitation, the transfer to such successor of all amounts received by it with
respect to the Specially Serviced Mortgage Loans. Further, the Special Servicer
shall execute and deliver such instruments and do such other things as may
reasonably be required to more fully and definitively vest in the successor all
such rights, powers, duties, responsibilities, obligations and liabilities of
the Special Servicer.

                                   ARTICLE III
                                   -----------

             DELINQUENT MORTGAGE LOANS OTHER THAN SPECIALLY SERVICED
             -------------------------------------------------------
                                 MORTGAGE LOANS
                                 --------------

       Section 3.01      REPORTING OF DELINQUENT MORTGAGE LOANS.

(a) To the extent and for so long as the Class B Certificates of a Series are
outstanding and any interest in such Class B Certificates is held by the Class B
Holder, the Company, as Master Servicer of the Mortgage Loans related to each
Series, hereby agrees to provide to the Class B Holder the following notices and
reports:

                                       R-5

<PAGE>

       Within three (3) Business Days after each Distribution Date (or included
in or with the monthly statements to Certificateholders pursuant to the related
Pooling and Servicing Agreement), the Company shall provide to the Class B
Holder a report, in tape format, containing the following information:

(1)    With respect to each Series, the number and aggregate Principal Balance
       of the Mortgage Loans delinquent one, two and three months or more,
       together with the Principal Balance of each Mortgage Loan delinquent,
       one, two and three months or more;

(2)    With respect to each Series, the (i) number and aggregate Principal
       Balance of Mortgage Loans with respect to which foreclosure proceedings
       have been initiated, and (ii) the number and aggregate book value of
       Mortgaged Properties acquired through foreclosure, deed in lieu of
       foreclosure or other exercise of rights respecting the Trustee's security
       interest in the Mortgage Loans, and with respect to each Mortgage Loan,
       the (i) Principal Balance of each such Mortgage Loan with respect to
       which foreclosure proceedings have been initiated, and (ii) the book
       value of each Mortgaged Property acquired through foreclosure, deed in
       lieu of foreclosure or other exercise of rights respecting the Trustee's
       security interest in the related Mortgage Loan; and

(3)    With respect to each Series, the amount of Realized Losses allocable to
       the Certificates on the related Distribution Date and the cumulative
       amount of Realized Losses allocated to such Certificates since the
       Cut-off Date, and with respect to each Mortgage Loan, the amount of
       Realized Losses attributable to such Mortgage Loan on the related
       Distribution Date and the cumulative amount of Realized Losses
       attributable to such Mortgage Loan since the Cut-off Date.

In addition, the Company, as Master Servicer of the Mortgage Loans, shall send,
or shall cause the related servicer to send, to the Class B Holder all other
written reports, documentation, instruments, certificates and correspondences
provided by a servicer under the terms of the Servicer Guide with respect to any
Mortgage Loan that becomes sixty (60) days or more delinquent.

       (b) If requested by the Class B Holder, the Company shall make its
servicing personnel available to respond to reasonable inquiries, by phone or in
writing by facsimile, electronic, or overnight mail transmission, in connection
with any Mortgage Loan identified in any report or document provided pursuant to
clause (a) above; provided, that the Company shall only be required to provide
information that is reasonably accessible to its servicing personnel (or its
subservicers).

       (c) In addition to the information described above, the Company shall
provide to the Class B Holder such information as the Class B Holder may
reasonably request; provided, however, that the Mortgage Loans are Delinquent
Mortgage Loans or the Mortgaged Property has been foreclosed upon. The Class B
Holder will reimburse the Company for any reasonable out-of-pocket expenses
incurred by it in providing such information.

       Section 3.02      SERVICING OF DELINQUENT MORTGAGE LOANS.

       (a) Prior to the Commencement of Foreclosure of any Mortgage Loan, the
Company shall provide, or cause the related servicer to provide, the Class B
Holder with a notice (sent by telecopier) of such proposed and imminent
foreclosure, stating the loan number and the aggregate amount due under the
Mortgage Note.

       For purposes of this Agreement, "COMMENCEMENT OF FORECLOSURE" shall mean
the first official action required under local law in order to commence
foreclosure proceedings or to schedule a trustee's sale under a deed of trust,
including (i) in the case of a mortgage, any filing or service of process
necessary to

                                       R-6

<PAGE>

commence an action to foreclosure, or (ii) in the case of a deed of trust,
posting, the publishing, filing or delivery of a notice of sale, but not
including in either case (x) any notice of default, notice of intent to
foreclose or sell or any other action prerequisite to the actions specified in
(i) or (ii) above, (y) the acceptance of a deed-in-lieu of foreclosure (whether
in connection with a sale of the related property or otherwise) or (z)
initiation and completion of a short pay-off.

       (b) In connection with any Delinquent Mortgage Loan with respect to which
a notice under clause (a) above has been delivered to the Class B Holder, the
Class B Holder shall provide the Company with written direction as to the action
to be taken with respect to such Delinquent Mortgage Loan, including, without
limitation, to proceed with foreclosure, to accept a deed-in-lieu of
foreclosure, to consent to a pre- foreclosure sale of Mortgaged Property at a
loss, or, if permitted under the terms of the related Pooling and Servicing
Agreement, to purchase Delinquent Mortgage Loans. Such written direction must be
received by the Company within two (2) Business Days of transmission of the
notice provided by the Company under clause (a) above. Such two (2) Business Day
period shall be extended for no longer than an additional three (3) Business
Days after the receipt of additional information requested if the Class B Holder
requests additional information related to such Delinquent Mortgage Loan;
provided, however that the Class B Holder will have at least one Business Day to
provide written direction after receipt of any requested additional information.
Any such additional information shall be provided only to the extent it is
obtainable by the Company from existing reports, certificates or statements or
otherwise be reasonably accessible to its servicing personnel (or subservicing
personnel). The Company shall as promptly as practicable carry out, or cause the
relevant servicer to carry out, the instruction of the Class B Holder in the
manner prescribed in such written direction. The Class B Holder agrees that it
has no right to negotiate directly with the Mortgagor during such period.

       In the event the Class B Holder fails to provide any written direction as
provided above, the Company may take any such action as would be consistent with
customary servicing practices of prudent mortgage loan servicers and the
Company's normal policies and practice.

       (c) With respect to any Delinquent Mortgage Loan for which the Company
has not provided a notice as contemplated in clause (a) above, the Class B
Holder may, at any time, provide the Company with written direction as to the
action to be taken with respect to such Delinquent Mortgage Loan, including,
without limitation, to commence foreclosure proceedings, to accept a
deed-in-lieu of foreclosure, to consent to a sale of Mortgaged Property at a
loss, or, if permitted under the terms of the related Pooling and Servicing
Agreement, to purchase Delinquent Mortgage Loans. To the extent such action is
not inconsistent with the terms of the related Pooling and Servicing Agreement
or the Company's duties thereunder as master servicer, the Company shall as
promptly as practicable carry out, or cause the relevant servicer to carry out,
the instruction of the Class B Holder in the manner prescribed in such written
direction.

       (d) Any foreclosure of a Delinquent Mortgage Loan that has been initiated
in accordance with clauses (b) or (c) above may be discontinued if (i) the
Mortgage Loan has been brought current or if a refinancing or prepayment occurs
with respect to the Mortgage Loan (including by means of a short payoff approved
by the Class B Holder), (ii) the Company has agreed to the terms of a
forbearance agreement with the Mortgagor and such forbearance agreement has been
approved by the Class B Holder, or (iii) if and to the extent permitted under
the related Pooling and Servicing Agreement, Class B Holder directs the Company
to purchase such Delinquent Mortgage Loan at the price and on the terms set
forth in the related Pooling and Servicing Agreement.

       (e) In the event the Class B Holder directs the Company to purchase a
Delinquent Mortgage Loan as permitted under Sections 2.02 and 3.02 (b), (c) and
(d), the Class B Holder may direct the Company to purchase any Delinquent
Mortgage Loan and to promptly resell such Mortgage Loan to the Class B Holder

                                       R-7

<PAGE>

at the price and on the terms set forth in the applicable Pooling and Servicing
Agreement. In the event the Class B Holder directs the Company to purchase a
Delinquent Mortgage Loan as permitted under this Section, the Company shall
promptly take all action necessary under the terms of the related Pooling and
Servicing Agreement in order to accomplish such purchase (i.e. provide
notification to the Trustee and/or Custodian) and to resell such Delinquent
Mortgage Loan to the Class B Holder. The Class B Holder, and not the Company,
shall be required to remit the purchase price for such Delinquent Mortgage Loan
to the related Trustee. The Company will inform the Trustee in writing of the
purchase of such Delinquent Mortgage Loan by the Class B Holder and further
shall promptly take all actions necessary or desirable to effect the conveyance
of such Mortgage Loan and the related servicing rights to the Class B Holder or
its designee, time being of the essence. [The parties hereto agree that, in
connection with a purchase of a Delinquent Mortgage Loan as provided above, any
fees resulting from the transfer of the servicing of such purchased Delinquent
Mortgage Loan from the Company or a subservicer to a servicer designated by the
Class B Holder shall be the obligation of the Company.]

       Section 3.03      REVIEW OF THE COMPANY'S PROCEDURES.

       The Company and the Class B Holder hereby agree that the Class B Holder
shall have the right, at its own expense and during normal business hours, to
review any and all of the books, records, or other information of the Company
which may be relevant to the Company's direct collection, loss mitigation
foreclosure and REO management procedures currently in place in order to confirm
that the procedures used by the Company and its subservicers are in accordance
with the customary servicing practices of prudent mortgage loan servicers. In
order to discuss such books, records or other information, the Company shall
make personnel available who are knowledgeable about such matters.

                                   ARTICLE IV
                                   ----------

                         REPRESENTATIONS AND WARRANTIES
                         ------------------------------

       Section 4.01 ORGANIZATIONAL AND OTHER RELATED WARRANTIES OF THE CLASS B
HOLDER. The Class B Holder hereby makes the following representations and
warranties to the Company and the Special Servicer:

                (i) ORGANIZATION AND GOOD STANDING. The Class B Holder is an
entity duly organized, validly existing, and in good standing under the laws of
its state of incorporation or formation or the laws of the United States.

                (ii) NO VIOLATION. Neither the execution and delivery by the
Class B Holder of this Agreement, nor the consummation by the Class B Holder of
the transactions contemplated hereby, nor the performance of and compliance by
the Class B Holder with the provisions of this Agreement, will conflict with or
result in a breach or violation of, or constitute a default (or an event which,
with notice or the lapse of time, or both, would constitute a default) under,
the organizational documents (its articles of incorporation or charter or
by-laws) of the Class B Holder, or any of the provisions of any law, rule,
regulation, judgment, decree, demand, or order (of any federal, state, or local
governmental or regulatory authority or court) binding on the Class B Holder, or
any of its respective properties, or any of the provisions of any indenture,
mortgage, contract, instrument, or other document to which the Class B Holder is
a party or by which it is bound, or result in the creation or imposition of any
lien, charge, or encumbrance upon any of their respective properties pursuant to
the terms of any indenture, mortgage, contract, instrument, or other document.
The Class B Holder is not otherwise in violation of any law, rule, regulation,
judgment, decree, demand, or order (of any federal, state or local governmental
or regulatory authority or court), which violation, in the Class B Holder's,
good faith and reasonable judgment, is likely to affect materially and adversely
its ability to perform its obligations hereunder.

                                       R-8

<PAGE>

                (iii) AUTHORIZATION AND ENFORCEABILITY. The execution and
delivery by the Class B Holder of this Agreement, the consummation of the
transactions contemplated hereby, and the performance and compliance by the
Class B Holder with the terms hereof are within the powers of the Class B
Holder, and have been duly authorized by all necessary action on the part of the
Class B Holder. All organizational resolutions and consents necessary for the
Class B Holder to enter into and consummate all transactions contemplated hereby
have been obtained. This Agreement has been duly executed and delivered by the
Class B Holder and constitutes the legal, valid and binding obligation of the
Class B Holder, enforceable against it in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium, and other similar
laws affecting creditors' rights generally, and to general principles of equity,
regardless of whether such enforcement is considered in a proceeding in equity
or at law. The Class B Holder has not failed to obtain any consent, approval,
authorization, or order of, or failed to cause any registration or qualification
with, any court or regulatory authority or other governmental body having
jurisdiction over it, which consent, approval, authorization, order,
registration, or qualification is required for, and the absence of which would
materially adversely affect, the legal and valid execution, delivery, and
performance of this Agreement by the Class B Holder.

                (iv) NO LITIGATION OR ADVERSE CONDITIONS. No litigation is
pending or, to the best of the Class B Holder's knowledge, threatened against
it, which, if determined adversely to the Class B Holder would prohibit the
Class B Holder from entering into this Agreement or, in the good faith and
reasonable judgment of the Class B Holder, is likely to materially and adversely
affect either the ability of the Class B Holder to perform its obligations
hereunder.

       Section 4.02 ORGANIZATIONAL AND OTHER RELATED WARRANTIES OF THE COMPANY.
The Company hereby makes the following representations and warranties to the
Class B Holder and the Special Servicer:

                (i) ORGANIZATION AND GOOD STANDING. The Company is an entity
duly organized, validly existing, and in good standing under the laws of its
state of incorporation or formation or the laws of the United States, and is in
compliance with the laws of each state in which any property is located to the
extent necessary to ensure the enforceability of each Mortgage Loan and to
perform its obligations hereunder and the Pooling and Servicing Agreement.

                (ii) NO VIOLATION. Neither the execution and delivery by Company
of this Agreement, nor the consummation by it of the transactions contemplated
hereby, nor the performance of and compliance by the Company with the provisions
hereof or of the Pooling and Servicing Agreement, will conflict with or result
in a breach or violation of, or constitute a default (or an event which, with
notice or the lapse of time, or both, would constitute a default) under, the
organizational documents (its articles of incorporation or charter or by-laws)
of the Company, or any of the provisions of any law, rule, regulation, judgment,
decree, demand, or order (of any federal, state, or local governmental or
regulatory authority or court) binding on the Company, or any of its properties,
or any of the provisions of any indenture, mortgage, contract, instrument, or
other document (including, without limitation, any Pooling and Servicing
Agreement) to which the Company is a party or by which it is bound, or result in
the creation or imposition of any lien, charge, or encumbrance upon any of their
respective properties pursuant to the terms of any indenture, mortgage,
contract, instrument, or other document. The Company is not otherwise in
violation of any law, rule, regulation, judgment, decree, demand, or order (of
any federal, state or local governmental or regulatory authority or court),
which violation, in the Company's good faith and reasonable judgment, is likely
to affect materially and adversely either its ability to perform its obligations
hereunder or under the Pooling and Servicing Agreements, or the financial
condition of the Company.

                (iii) AUTHORIZATION AND ENFORCEABILITY. The execution and
delivery by the Company of this Agreement, the consummation of the transactions
contemplated hereby, and the performance and compliance

                                       R-9

<PAGE>

by the Company with the terms hereof and of the Pooling and Servicing Agreements
are within the powers of the Company, and have been duly authorized by all
necessary action on the part of the Company. All organizational resolutions and
consents necessary for the Company to enter into and consummate all transactions
contemplated hereby have been obtained. This Agreement has been duly executed
and delivered by the Company and constitutes the legal, valid and binding
obligation of the Company, enforceable against it in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium, and
other similar laws affecting creditors' rights generally, and to general
principles of equity, regardless of whether such enforcement is considered in a
proceeding in equity or at law. The Company has not failed to obtain any
consent, approval, authorization, or order of, or failed to cause any
registration or qualification with, any court or regulatory authority or other
governmental body having jurisdiction over the Company, which consent, approval,
authorization, order, registration, or qualification is required for, and the
absence of which would materially adversely affect, the legal and valid
execution, delivery, and performance of this Agreement by the Company.

                (iv) APPROVALS AND PERMITS. The Company possesses such
certificates, authorizations, licenses, and permits issued by the appropriate
state, federal, and foreign regulatory agencies or bodies necessary to conduct
the business now operated by it, and the Company has not received any notice of
proceedings relating to the revocation or modification of any such certificate,
authorization, or permit which, singly or in the aggregate, if the subject of an
unfavorable decision, ruling, or finding, would materially and adversely affect
the conduct of the business, operations, financial condition, or income of the
Company.

                (v) NO LITIGATION OR ADVERSE CONDITIONS. No litigation is
pending or, to the best of the Company's knowledge, threatened against it,
which, if determined adversely to the Company would prohibit the Company from
entering into this Agreement or, in the good faith and reasonable judgment of
the Company, is likely to materially and adversely affect either its ability to
perform its obligations hereunder or under the Pooling and Servicing Agreements
or the financial condition of the Company. The Company has no knowledge of any
recent adverse financial condition or event with respect to itself that, in its
good faith and reasonable judgment, is likely to materially and adversely affect
its ability to perform its obligations hereunder or under the Pooling and
Servicing Agreements.

                (vi) FIDELITY BOND: ERRORS AND OMISSION INSURANCE. Each officer,
director, employee, consultant and advisor of the Company with responsibilities
concerning the servicing and administration of the Mortgage Loans is covered by
errors and omissions insurance and fidelity bond insurance in the amounts and
with the coverage required under the related Pooling and Servicing Agreement for
it to maintain. Neither the Company nor any of its officers, directors,
employees, consultants, or advisors involved in the servicing or administration
of the Mortgage Loans has been refused such coverage or insurance.

       Section 4.03 ORGANIZATIONAL AND OTHER RELATED WARRANTIES OF THE SPECIAL
SERVICER. The Special Servicer hereby makes the following representations and
warranties to the Company and the Class B Holder:

                (i) ORGANIZATION AND GOOD STANDING. The Special Servicer is an
entity duly organized, validly existing, and in good standing under the laws of
its state of incorporation or formation or the laws of the United States, and is
in compliance with the laws of each state in which any property is located to
the extent necessary to ensure the enforceability of each Mortgage Loan and to
perform its obligations hereunder.

                (ii) NO VIOLATION. Neither the execution and delivery by Special
Servicer of this Agreement, nor the consummation by it of the transactions
contemplated hereby, nor the performance of and compliance by the Special
Servicer with the provisions hereof , will conflict with or result in a breach
or violation of, or constitute a default (or an event which, with notice or the
lapse of time, or both, would

                                      R-10

<PAGE>

constitute a default) under, the organizational documents (its articles of
incorporation or charter or by-laws) of the Special Servicer, or any of the
provisions of any law, rule, regulation, judgment, decree, demand, or order (of
any federal, state, or local governmental or regulatory authority or court)
binding on the Special Servicer, or any of its properties, or any of the
provisions of any indenture, mortgage, contract, instrument, or other document
to which the Special Servicer is a party or by which it is bound, or result in
the creation or imposition of any lien, charge, or encumbrance upon any of their
respective properties pursuant to the terms of any indenture, mortgage,
contract, instrument, or other document. The Special Servicer is not otherwise
in violation of any law, rule, regulation, judgment, decree, demand, or order
(of any federal, state or local governmental or regulatory authority or court),
which violation, in the Special Servicer's good faith and reasonable judgment,
is likely to affect materially and adversely either its ability to perform its
obligations hereunder, or the financial condition of the Special Servicer.

                (iii) AUTHORIZATION AND ENFORCEABILITY. The execution and
delivery by the Special Servicer of this Agreement, the consummation of the
transactions contemplated hereby, and the performance and compliance by the
Special Servicer with the terms hereof are within the powers of the Special
Servicer, and have been duly authorized by all necessary action on the part of
the Special Servicer. All organizational resolutions and consents necessary for
the Special Servicer to enter into and consummate all transactions contemplated
hereby have been obtained. This Agreement has been duly executed and delivered
by the Special Servicer and constitutes the legal, valid and binding obligation
of the Special Servicer, enforceable against it in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium, and
other similar laws affecting creditors' rights generally, and to general
principles of equity, regardless of whether such enforcement is considered in a
proceeding in equity or at law. The Special Servicer has not failed to obtain
any consent, approval, authorization, or order of, or failed to cause any
registration or qualification with, any court or regulatory authority or other
governmental body having jurisdiction over the Special Servicer, which consent,
approval, authorization, order, registration, or qualification is required for,
and the absence of which would materially adversely affect, the legal and valid
execution, delivery, and performance of this Agreement by the Special Servicer.

                (iv) APPROVALS AND PERMITS. The Special Servicer possesses such
certificates, authorizations, licenses, and permits issued by the appropriate
state, federal, and foreign regulatory agencies or bodies necessary to conduct
the business now operated by it, and its has not received any notice of
proceedings relating to the revocation or modification of any such certificate,
authorization, or permit which, singly or in the aggregate, if the subject of an
unfavorable decision, ruling, or finding, would materially and adversely affect
the conduct of the business, operations, financial condition, or income of the
Special Servicer.

                (v) NO LITIGATION OR ADVERSE CONDITIONS. No litigation is
pending or, to the best of the Special Servicer's knowledge, threatened against
it, which, if determined adversely to the Special Servicer would prohibit the
Special Servicer from entering into this Agreement or, in the good faith and
reasonable judgment of the Special Servicer, is likely to materially and
adversely affect either its ability to perform its obligations hereunder or the
financial condition of the Special Servicer. The Special Servicer has no
knowledge of any recent adverse financial condition or event with respect to
itself that, in its good faith and reasonable judgment, is likely to materially
and adversely affect its ability to perform its obligations hereunder.

                (vi) FIDELITY BOND, ERRORS AND OMISSION INSURANCE. Each officer,
director, employee, consultant and advisor of the Special Servicer with
responsibilities concerning the servicing and administration of the Mortgage
Loans is covered by errors and omissions insurance and fidelity bond insurance
in the amounts and with the coverage required under the related Pooling and
Servicing Agreement to be maintained by the Company as master servicer. Neither
the Special Servicer nor any of its officers,

                                      R-11
<PAGE>

directors, employees, consultants, or advisors involved in the servicing or
administration of the Mortgage Loans has been refused such coverage or
insurance.

                (vii) APPROVED SELLER/SERVICER. The Special Servicer is approved
as a seller/servicer of single-family mortgage loans by the Department of
Housing and Urban Development.

       Section 4.04      REMEDIES FOR BREACH OF REPRESENTATION AND WARRANTY.

       Upon discovery by any of the Company, the Class B Holder or the Special
Servicer of a breach of any of the representations and warranties contained in
Article IV which materially and adversely affects the value of the Specially
Serviced Mortgage Loans or Delinquent Mortgage Loans, the party discovering such
breach shall give prompt written notice to the others.

       Each of the parties hereto shall indemnify the others and hold each of
them harmless against any losses, damages, penalties, fines, forfeitures,
reasonable and necessary legal fees and related costs, judgments, and other
costs and expenses resulting from any claim, demand, defense or assertion based
on or grounded upon, or resulting from, a breach of such party's representations
and warranties contained in Article IV. It is understood and agreed that the
obligations to indemnify as provided in this Section 4.04 constitute the sole
remedies of each of the Company, Class B Holder and Special Servicer respecting
a breach of any other party's representations and warranties.

                                    ARTICLE V
                                    ---------

                            MISCELLANEOUS PROVISIONS
                            ------------------------

       Section 5.01      INDEMNIFICATION.

       Each of the Company, the Class B Holder and the Special Servicer (each as
such, an "INDEMNIFYING PARTY") shall indemnify the other parties hereto (each as
such, an "INDEMNIFIED PARTY") and hold them harmless against any and all claims,
losses, damages, penalties, fines, forfeitures, reasonable and necessary legal
fees and related costs, judgments, and any other costs, fees and expenses
(individually and collectively, the "CLAIMS") that such Indemnified Party may
sustain in any way related to the failure of the Indemnifying Party to perform
its duties in compliance with the terms of this Agreement; PROVIDED, that none
of the Company, the Class B Holder or the Special Servicer or any of the
directors, officers, employees or agents of the Depositor or the Servicer shall
be liable for any action taken or for refraining from the taking of any action
in good faith pursuant to this Agreement, or for errors in judgment; PROVIDED,
HOWEVER, that this provision shall not protect the Company, the Class B Holder
or the Special Servicer against any material breach of warranties,
representations or covenants made herein, or against any specific liability
imposed on such party pursuant hereto, or against any liability which would
otherwise be imposed by reason of willful misfeasance, bad faith or gross
negligence in the performance of duties or by reason of reckless disregard of
obligations and duties hereunder.

                                      R-12
<PAGE>

       Section 5.02      AMENDMENT.

       This Agreement may be amended from time to time by written agreement
signed by each of the parties hereto.

       Section 5.03      COUNTERPARTS.

       This Agreement may be executed simultaneously in any number of
counterparts, each of which counterparts shall be deemed to be an original and
such counterparts shall constitute but one and the same instrument.

       Section 5.04      GOVERNING LAW.

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

       Section 5.05      NOTICES.

       All demands, notices and direction hereunder shall be in writing or by
telecopy and shall be deemed effective upon receipt to:

                (i)  in the case of the Company,

                Company
                Address:         ___________________
                Attention:       ___________________
                Telephone:       ___________________
                Facsimile:       ___________________

                or such other address as may hereafter be furnished to the Class
                B Holder and the Special Servicer in writing.

                (ii)  in the case of the Class B Holder,

                Address:         ___________________
                Attention:       ___________________
                Telephone:       ___________________
                Facsimile:       ___________________

                or such other address as may hereafter be furnished to the
                Company in writing.

                                      R-13

<PAGE>

                (iii)  in the case of the Special Servicer,

                Address:         ___________________
                Attention:       ___________________
                Telephone:       ___________________
                Facsimile:       ___________________

                or such other address as may hereafter be furnished to the
                Company in writing.

       Section 5.06      TERMINATION.

       This Agreement shall terminate (i) at such time as the Principal Balance
of the Class B Certificates has been reduced to zero or (ii) if mutually agreed
to by the parties hereto.

       Section 5.07      SEVERABILITY OF PROVISIONS.

       If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be held invalid for any reason whatsoever, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement. If the invalidity of any part, provision, representation or warranty
of this Agreement shall deprive any party of the economic benefit intended to be
conferred by this Agreement, the parties shall negotiate in good faith to
develop a structure the economic effect of which is nearly as possible the same
as the economic effect of this Agreement without regard to such invalidity.

       Section 5.08      SUCCESSORS AND ASSIGNS.

       This Agreement may not be assigned by any party hereto without the prior
written consent of each of the other parties hereto. The provisions of this
Agreement shall be binding upon and inure to the benefit of the respective
successors and assigns of the parties hereto.

       Section 5.09      ARTICLE AND SECTION HEADINGS.

       The article and section headings herein are for convenience of reference
only and shall not limit or otherwise affect the meaning hereof.

       Section 5.10      CONFIDENTIALITY.

       The Class B Holder agrees that all information supplied by or on behalf
of the Company pursuant to Sections 2.02 or 3.01, including individual account
information, is the property of the Company and the Class B Holder agrees to use
such information only for the purposes contemplated by this Agreement and
otherwise hold such information confidential and not to disclose such
information, except to the extent such information is made publicly available by
or on behalf of the Company or the relevant Trustee.

       Section 5.11      PUBLICLY REGISTERED CERTIFICATES.

       The Class B Holder agrees, that without the prior written consent of the
Company, so long as Class B Holder is a party to this Agreement and a holder of
any Class B Certificates of a Series, it will not purchase, sell or trade any
publicly registered Certificates of the same Series.

                                      R-14

<PAGE>

       Section 5.12      NO PARTNERSHIP.

       Nothing herein shall be deemed or construed to create a partnership or
joint venture between the parties hereto and the services of the Company shall
be rendered as an independent contractor and not as an agent for the Company.

       Section 5.13 RIGHTS OF THE CLASS B HOLDER. Notwithstanding anything
herein to the contrary, it is agreed by the parties hereto that the rights of
the Class B Holder set forth under Article II and Section 3.02(e) of this
Agreement shall relate to, and be exercisable with respect to, the related
Mortgage Loans of any Series to the extent that and for so long as, the Class B
Holder owns at least 75% of the most subordinate outstanding class of Class B
Certificates of the related Series (calculated by dividing the then outstanding
Certificate Principal Balance of such Class B Certificates by the then
outstanding Certificate Principal Balance of all certificates of the same
class).

                                      R-15

<PAGE>

       IN WITNESS WHEREOF, each of the parties hereto have caused its name to be
signed hereto by its respective officer thereunto duly authorized, all as of the
day and year first above written.

                                     COMPANY

                                             By: ___________________________
                                             Name: _________________________
                                             Title: ________________________

                                             By: ___________________________
                                             Name: _________________________
                                             Title: ________________________

                                             By: ___________________________
                                             Name: _________________________
                                             Title: ________________________

                                      R-16

<PAGE>

                                                                      SCHEDULE I

Describe each Series of Class B Certificates and the related Pooling and
Servicing Agreement

                                      R-17

<PAGE>

                                                                     SCHEDULE II

                      SPECIAL SERVICING TRANSFER PROCEDURES

              Any transfer of servicing with respect to a Specially Serviced
Mortgage Loan shall be effected substantially in accordance with the following
example. All dates set forth below are for illustrative purposes only.
Capitalized terms used in this Exhibit shall have the meanings ascribed thereto
in the Agreement.

                                    Timeline
                                    --------

Last Business Day of Month One
         Mortgagor is 89 Days Delinquent.

3rd Business Day of Month Two
         The Company receives an electronic file from its Collections Department
on all 90+delinquent loans.

4th Business Day of Month Two
         The Company sends the electronic file to Class B Holder/Special
         Servicer of all 90+ delinquent loans with information designating those
         loans where a forbearance plan or workout is in progress and those
         loans where there is no plan in place. The Company and the Special
         Servicer have a discussion. The loans to be transferred are determined
         by the Class B Holder/Special Servicer.

6th Business Day of Month Two
         The Special Servicer informs the Company of the loans designated as
         Specially Serviced Mortgage Loans. The Company and the Special Servicer
         coordinate the transfer of servicing of the Specially Serviced Mortgage
         Loans. The Company prepares and mails the mortgagor notification no
         later than the 13th calendar day of the month. If a loan reinstates to
         a current or less than 90 days delinquent status before the mortgagor
         notification (i.e., the "goodbye letter") is sent, such loan will be
         removed from the transfer, and the Company will notify the Special
         Servicer thereof. The borrower will be instructed to send the payment
         due on the effective date of transfer and any past due payments to the
         Special Servicer.

7th Business Day of Month Two
         Relevant Trustee receives monthly electronic data file from the
         Company. The subject loan is included in the Company's report as an
         active loan serviced by the Company. The Company reports scheduled P&I
         on the subject loan.

On or prior to 15th Calendar Day of Month Two
         The Company sends a foreclosure referral letter to the Special
         Servicer's foreclosure counsel with a corresponding foreclosure
         package.

18th Calendar Day (or Business day immediately preceding the 18th) of Month Two
         The Company makes its monthly remittance, including advancing scheduled
         P&I payment due for current month for the subject loan.

Last business Day of Month Two
         Month-end cut-off.

                                      R-18
<PAGE>

1st Business Day of Month Three
         Effective Date.

On or Before 3rd Business Day of Month Three

         In accordance with the Servicing Transfer Instructions:

         Company sends Special Servicer final transfer data (e.g., trial
         balance, loan files, current and previous 2 years' history records (if
         applicable), all default-related correspondence, and all collection,
         foreclosure and bankruptcy files);

         Company provides Special Servicer with detailed reimbursement request
         relating to advances; and

         Company sends Special Servicer a check or wire for the net escrow and
         unapplied funds.

On or before the 6th Business Day of Month Three
         In accordance with the Servicing Transfer Instructions, Special Service
         reimburses Company for all outstanding advances, and the scheduled
         mortgage payment due on the Effective Date.

___________________

Note:

1.       If the loan has been transferred to Special Servicer and it cures,
         Special Servicer continues to service the loan and report it to Company
         as herein provided.

2.       If the Class B Certificates of the related Series are reduced to zero,
         Special Servicer will continue to service the mortgage loans until they
         payoff or are liquidated. No other Delinquent Mortgage Loans of a
         Series will be transferred to Special Servicer after the Class B
         Certificates of such Series are reduced to zero.

                                      R-19

<PAGE>

                         Servicing Transfer Instructions
                         -------------------------------

I.       NOTIFICATION OF LOANS TO TRANSFER

A.       Company will coordinate and provide a listing of all loans past 90 days
delinquent. The list will be provided to Special Servicer for review and
discussion on the 4th Business day of each month.

B.       Class B Holder and Special Servicer to agree upon the loans to be
transferred at month-end. The list must be provided via Facsimile or E-mail by
the 6th business day of the month to:

                               [COMPANY]
                               [Address and contact]

II. CONVERSION DATA

Dependent upon the volume of loans transferring each month, the loans will be
transferred effective the first of each month based on the prior month-end cut
off by one of the following mutually agreed upon conversion methods.

A.       Manual conversion

         1.     Company to provide a "master file data record" (COMPANY
                reference for master file data record?) for each loan
                (accompanied by a listing of all code definitions).

         2.     Company to provide a trial balance containing all the loans.

B.       Electronic conversion

         1.     Information will be provided in a Microsoft Excel spreadsheet
                (or such other mutually agreeable format) containing mutually
                agreed upon fields.

         2.     Company to provide a trial balance containing all the loans.

Preliminary information for either a manual or electronic conversion will be
provided within 3 business days of receipt of the List of Loans to Transfer to
provide time for Special Servicer to verify and load the information, with the
exception of the specific data that is determined at the transfer date.

III.     HOMEOWNER NOTIFICATION

A.       Company will mail the mortgagor notification (good-bye letter) fifteen
days prior to the transfer date. Company will forward a copy of its good-bye
letter to Special Servicer c/o [Dept.] (fax number ___-___- ____) for approval
prior to mailing.

B.       Copies of Company's mortgagor notification letters will be provided to
Special Servicer.

C.       Company to receive a sample of Special Servicer's mortgagor
notification (welcome letter) for approval prior to mailing.

                                      R-20

<PAGE>

IV.      HAZARD/FLOOD INSURANCE

A.       Company to prepare a change to the mortgagee clause as follows:

         Address:              ___________________
         Attention:            ___________________
         Telephone:            ___________________
         Facsimile:            ___________________

B.       Copies of the mortgagee clause change requests will be provided to
Special Servicer.

C.       Any unpaid policies, expiration notices, cancellation notices, loans
with expired policies will be properly identified, sorted and marked for special
handling.

D.       Company to provide a list of loans under "force place coverage"
program. Force place hazard insurance policies with ASG will be canceled upon
transfer of the loans. WNC force place flood policy coverage will stay in place
after transfer until the expiration date.

V.       FHA LOANS

A.       Company to provide screen prints to include the following items on FHA
Loans with a monthly premium.

         1.     Loan number
         2.     FHA case number
         3.     Anniversary date
         4.     Annual premium
         5.     Monthly amount
         6.     Total MIP paid to date
         7.     Next month the premium is due

B.       Company to provide screen prints to include the following items on FHA
loans that the full premium was paid up front.

         1.     Loan number
         2.     FHA case number
         3.     Insuring date
         4.     Amount of prepaid premium

C.       Company to prepare HUD Form 92080 with Special Servicer's HUD mortgagee
number (72313) and forward to HUD electronically. Proof of submission will be
forwarded to Special Servicer.

VI. CONVENTIONAL LOANS

A.       Individual loan PMI certificates will be retained in the Servicing File

B.       Company to prepare notifications to the PMI companies requesting a
change of servicer to Special Servicer. Copies will be forwarded to Special
Servicer.

                                      R-21

<PAGE>

C.       Company to provide screen prints of all loans with PMI to include:

         1.     Loan number
         2.     PMI company
         3.     PMI certificate number
         4.     Next due date
         5.     Last amount paid

VII.  REAL ESTATE TAXES

A.       Company to forward individual loan tax records showing payee, due
dates, frequency of payment, next due date, last paid date and last paid amount.

B        Company to provide copies of the notifications to the individual tax
authorities and the Tax Service requests for a change of servicer to Special
Servicer under the following contract numbers (Transamerica- 2489 Pinnacle -
119)

C.       All property taxes due and payable will be paid prior to the transfer
date.

D.       All tax bills received after the transfer date will be forwarded to
Special Servicer for payment.

E.       Company to provide a listing of any loans with delinquent taxes
containing the pertinent information as of the transfer date.

                                      R-22

<PAGE>

VIII.  OPTIONAL INSURANCE

A.       Company to provide a list of loans with A&H, life insurance, accidental
death insurance, etc., which will include the following information.

         1.     Loan number
         2.     Insurance company
         3.     Type of coverage
         4.     Amount of monthly premium
         5.     Last monthly premium paid

B.       Company to provide copies of the master and/or individual policies for
the insurance coverage.

C.       Company to provide copies of the notification sent to the insurance
companies.

IX.      INVESTOR REPORTS

A.       Company to provide a copy of the final remittance report to the
investor including a trial balance as of cutoff date.

B.       Company to provide ending loan scheduled balance at transfer date.

C.       Company to provide a report detailing advanced delinquent net interest
monthly by due date.

D.       Company to provide a report detailing advanced delinquent principal
monthly by due date.

X.       OTHER

A.       Company to provide hard copies of the last 24 months history for each
loan accompanied by an explanation of transaction codes.

B.       Company to provide copies of the last escrow analysis for each loan
with an explanation of analysis method (cushion, etc.).

C.       Company to provide the loan servicing file in hard copy or microfiche
format.

D.       Company to provide the currently active collection records and
pertinent information on delinquent loans.

E.       Net escrow and unapplied funds as of the transfer date will be sent to
Special Servicer via check or wire within three business days of the transfer,
accompanied by an explanation of Unapplied Funds codes.

F.       The advances (exclusive of escrow advances, which will be handled in
Section X (E) above) incurred by Company will be billed to Special Servicer
accompanied by appropriate documentation. Special Servicer to reimburse Company
via check or wire for all advances (exclusive of escrow advances, which will be
handled in Section X (E) above) on the subject loans within three business days
of receipt of billing.

G.       Company to provide a listing containing the mortgagor name,
co-mortgagor name, property address

                                      R-23

<PAGE>

and mailing address for preparation of Special Servicer's Notification Letters.

H.       Company to provide the following items, sorted and clearly marked for
special handling.

         1.     Active foreclosure and bankruptcy files should have the status
                shown on the front of each file.

         2.     Insurance loss drafts should provide all documentation on the
                current status.

         3.     Unprocessed payoff funds should be accompanied by a copy of the
                payoff quotation.

         4.     Information should be furnished on any pending payoff or
                assumption.

         5.     Information on any incomplete partial releases should be
                provided.

I.       Loan payments received after the cutoff will be endorsed to __________
and forwarded by overnight service to the following address within twenty-four
hours, properly identified with Company's loan number.

         [Address]

Returned Items received after the transfer date will be forwarded to Special
Servicer for reimbursement. Special Servicer to reimburse Company within 10
business days of receipt.

J.       Company to ship all loan files and documentation related to the
individual transfers by the 3rd business day after the cut-off. Any information,
such as preliminary trial balances, master file data records, delinquency
information, etc. will be furnished as early as possible prior to the transfer
date.

                                      R-24

<PAGE>

All shipments to be sent to:

         [Address]

K.       Company to furnish all required IRS reporting statements for the
current year up to the transfer date, both to the mortgagors and to the
appropriate government agencies. Special Servicer to furnish all required
year-end reporting commencing on the effective date of transfer through the
year-end.

                                      R-25

<PAGE>

                                                        EXHIBIT A to Schedule II

                   LOAN INFORMATION TO BE PROVIDED TO COMPANY

                                      R-26

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