Document:

EXECUTION COPY

                   RESIDENTIAL ASSET MORTGAGE PRODUCTS, INC.,

                                  as Purchaser,

                           GMAC MORTGAGE CORPORATION,

                             as Seller and Servicer,

                   WALNUT GROVE HOME EQUITY LOAN TRUST 2000-A,

                                   as Seller,

                       GMACM MORTGAGE LOAN TRUST 2000-HE3,

                                   as Issuer,

                                       and

                        WELLS FARGO BANK MINNESOTA, N.A.,

                              as Indenture Trustee

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

                        MORTGAGE LOAN PURCHASE AGREEMENT
                  --------------------------------------------

                          Dated as of October 30, 2000

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<TABLE>
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                                TABLE OF CONTENTS

                                                                                            Page

                                                -I-

<S>                                                                                        <C>
ARTICLE I         DEFINITIONS...............................................................1

        Section 1.1   Definitions...........................................................1

        Section 1.2   Other Definitional Provisions.........................................2

ARTICLE II        SALE OF MORTGAGE LOANS AND RELATED PROVISIONS.............................2

        Section 2.1   Sale of Initial Mortgage Loans........................................2

        Section 2.2   Sale of Subsequent HELs...............................................5

        Section 2.3   Payment of Purchase Price.............................................8

ARTICLE III       REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH.......................9

        Section 3.1   Seller Representations and Warranties.................................9

ARTICLE IV        SELLER'S COVENANTS.......................................................16

        Section 4.1   Covenants of the Seller..............................................16

ARTICLE V         SERVICING................................................................16

        Section 5.1   Servicing............................................................16

ARTICLE VI        INDEMNIFICATION BY THE SELLER WITH RESPECT TO THE MORTGAGE LOANS.........16

        Section 6.1   Indemnification with Respect to the Mortgage Loans...................16

        Section 6.2   Limitation on Liability of the Seller................................16

ARTICLE VII       TERMINATION..............................................................17

        Section 7.1   Termination..........................................................17

ARTICLE VIII      MISCELLANEOUS PROVISIONS.................................................17

        Section 8.1   Amendment............................................................17

        Section 8.2   GOVERNING LAW........................................................17

        Section 8.3   Notices..............................................................17

        Section 8.4   Severability of Provisions...........................................18

        Section 8.5   Relationship of Parties..............................................18

        Section 8.6   Counterparts.........................................................18

        Section 8.7   Further Agreements...................................................18

        Section 8.8   Intention of the Parties.............................................18

        Section 8.9   Successors and Assigns; Assignment of This Agreement.................19

        Section 8.10  Survival.............................................................19

        Section 8.11  Third Party Beneficiary..............................................20

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<PAGE>

EXHIBIT 1  MORTGAGE LOAN SCHEDULE...........................................................0

EXHIBIT 2  FORM OF SUBSEQUENT TRANSFER AGREEMENT............................................1

EXHIBIT 3  FORM OF ADDITION NOTICE..........................................................2

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</TABLE>

<PAGE>

        This Mortgage Loan Purchase  Agreement  (the  "Agreement"),  dated as of
October 30, 2000, is made among GMAC Mortgage  Corporation,  as seller ("GMACM")
and as servicer (in such  capacity,  the  "Servicer"),  Walnut Grove Home Equity
Loan Trust  2000-A,  as seller  ("WG  Trust" and,  together  with GMACM,  each a
"Seller" and collectively, the "Sellers"),  Residential Asset Mortgage Products,
Inc., as purchaser (the  "Purchaser"),  GMACM Mortgage Loan Trust  2000-HE3,  as
issuer  (the  "Issuer"),  and Wells Fargo Bank  Minnesota,  N.A.,  as  indenture
trustee (the "Indenture Trustee").

                                   WITNESSETH:

        WHEREAS,  GMACM,  in the ordinary  course of its  business  acquires and
originates  home equity loans and originated all of the home equity loans listed
on the  Mortgage  Loan  Schedule  attached  as  Exhibit 1 hereto  (the  "Initial
Mortgage Loans");

        WHEREAS,  GMACM sold a portion of the  Initial  Mortgage  Loans (the "WG
Trust Initial Mortgage Loans"), to Walnut Grove Funding,  Inc. ("Walnut Grove"),
pursuant to a Mortgage  Loan  Purchase  Agreement  (the "Walnut  Grove  Purchase
Agreement"),  dated as of June 1, 2000, among Walnut Grove, as purchaser, GMACM,
as seller,  WG Trust, as Issuer and Bank One, National  Association,  as trustee
(each date of sale, a "Prior Transfer Date");

        WHEREAS,  Walnut Grove sold the WG Trust  Initial  Mortgage  Loans to WG
Trust pursuant to a Trust  Agreement,  dated as of June 1, 2000,  between Walnut
Grove, as depositor and Wilmington Trust Company, as owner trustee;

        WHEREAS,  GMACM owns the Cut-Off Date Principal Balances and the Related
Documents for the portion of Initial  Mortgage  Loans  indicated on the Mortgage
Loan  Schedule -A attached  as Exhibit 1-A hereto (the "GMACM  Initial  Mortgage
Loans"), including rights to (a) any property acquired by foreclosure or deed in
lieu of foreclosure or otherwise, and (b) the proceeds of any insurance policies
covering the GMACM Initial Mortgage Loans;

        WHEREAS,  WG Trust owns the  Cut-Off  Date  Principal  Balances  and the
Related  Documents  for the WG Trust  Initial  Mortgage  Loans  indicated on the
Mortgage  Loan Schedule -B attached as Exhibit 1-B hereto,  including  rights to
(a) any  property  acquired by  foreclosure  or deed in lieu of  foreclosure  or
otherwise,  and (b) the proceeds of any insurance policies covering the WG Trust
Initial Mortgage Loans;

        WHEREAS, the parties hereto desire that: (i) GMACM sell the Cut-Off Date
Principal  Balances of the GMACM Initial  Mortgage Loans to the Purchaser on the
Closing Date pursuant to the terms of this  Agreement  together with the Related
Documents,  (ii) WG Trust sell the  Cut-Off  Date  Principal  Balances of the WG
Trust  Initial  Mortgage  Loans to the Purchaser on the Closing Date pursuant to
the terms of this Agreement together with the Related Documents, (iii) GMACM may
sell  Subsequent  HELs to the Issuer on one or more  Subsequent  Transfer  Dates
pursuant to the terms of the related  Subsequent  Transfer  Agreement,  and (iv)
each Seller make certain  representations and warranties on the Closing Date and
GMACM make certain  representations  and warranties on each Subsequent  Transfer
Date;

<PAGE>

        WHEREAS,  pursuant to the Trust  Agreement,  the Purchaser will sell the
Initial  Mortgage  Loans and transfer all of its rights under this  Agreement to
the Issuer on the Closing Date;

     WHEREAS,  pursuant to the terms of the  Servicing  Agreement,  the Servicer
will service the Mortgage Loans;

     WHEREAS,  pursuant  to the terms of the Trust  Agreement,  the Issuer  will
issue the Certificates;

     WHEREAS,  pursuant to the terms of the Indenture, the Issuer will issue the
Notes, secured by the Trust Estate;

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

ARTICLE I

                                   DEFINITIONS

Section 1.1 Definitions. For all purposes of this Agreement, except as otherwise
expressly provided herein or unless the context otherwise requires,  capitalized
terms not  otherwise  defined  herein shall have the  meanings  assigned to such
terms in the  Definitions  contained in Appendix A to the indenture  dated as of
October  30,  2000 (the  "Indenture"),  between  the  Issuer  and the  Indenture
Trustee,  which is incorporated by reference herein. All other capitalized terms
used herein shall have the meanings specified herein.

Section 1.2 Other Definitional  Provisions.  All terms defined in this Agreement
shall have the defined  meanings when used in any  certificate or other document
made or delivered pursuant hereto unless otherwise defined therein.

        As used in this Agreement and in any  certificate or other document made
or delivered  pursuant hereto or thereto,  accounting  terms not defined in this
Agreement or in any such  certificate or other  document,  and accounting  terms
partly defined in this Agreement or in any such  certificate or other  document,
to the extent not  defined,  shall have the  respective  meanings  given to them
under  generally  accepted  accounting  principles.   To  the  extent  that  the
definitions of accounting  terms in this Agreement or in any such certificate or
other document are inconsistent  with the meanings of such terms under generally
accepted accounting  principles,  the definitions contained in this Agreement or
in any such certificate or other document shall control.

        The words  "hereof,"  "herein,"  "hereunder" and words of similar import
when used in this Agreement  shall refer to this Agreement as a whole and not to
any  particular  provision  of this  Agreement;  Section and Exhibit  references
contained in this  Agreement  are  references  to Sections and Exhibits in or to
this Agreement  unless  otherwise  specified;  the term  "including"  shall mean
"including  without  limitation";  "or"  shall  include  "and/or";  and the term
"proceeds" shall have the meaning ascribed thereto in the UCC.

                                        2

<PAGE>

        The  definitions  contained  in this  Agreement  are  applicable  to the
singular as well as the plural forms of such terms and to the  masculine as well
as the feminine and neuter genders of such terms.

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

ARTICLE II

                  SALE OF MORTGAGE LOANS AND RELATED PROVISIONS

Section 2.1    Sale of Initial Mortgage Loans.

(a) GMACM,  by the execution and delivery of this  Agreement,  does hereby sell,
assign, set over, and otherwise convey to the Purchaser,  without recourse,  all
of its right,  title and interest in, to and under the  following,  and wherever
located:  (i) the GMACM  Initial  Mortgage  Loans  (including  the Cut-Off  Date
Principal Balances),  all interest accruing thereon, all monies due or to become
due thereon,  and all  collections in respect  thereof  received on or after the
Cut-Off Date (other than interest  thereon in respect of any period prior to the
Cut-Off Date);  (ii) the interest of GMACM in any insurance  policies in respect
of the GMACM Initial  Mortgage  Loans;  and (iii) all proceeds of the foregoing.
Such  conveyance  shall be deemed to be made:  with  respect to the Cut-Off Date
Principal  Balances,  as of the Closing Date, subject to the receipt by GMACM of
consideration therefor as provided herein under clause (a) of Section 2.3.

(b) WG Trust, by the execution and delivery of this Agreement, does hereby sell,
assign, set over, and otherwise convey to the Purchaser,  without recourse,  all
of its right,  title and interest in, to and under the  following,  and wherever
located:  (i) the WG Trust Initial  Mortgage  Loans  (including the Cut-Off Date
Principal Balances),  all interest accruing thereon, all monies due or to become
due thereon,  and all  collections in respect  thereof  received on or after the
Cut-Off Date (other than interest  thereon in respect of any period prior to the
Cut-Off  Date);  (ii) the  interest  of WG Trust in any  insurance  policies  in
respect of the WG Trust Initial  Mortgage  Loans;  and (iii) all proceeds of the
foregoing.  Such  conveyance  shall be deemed to be made:  with  respect  to the
Cut-Off Date Principal Balances,  as of the Closing Date, subject to the receipt
by WG Trust of  consideration  therefor as provided  herein  under clause (a) of
Section 2.3.

               In addition,  the Issuer shall deposit with the Indenture Trustee
from  proceeds of the  issuance of the  Securities  on the Closing  Date (i) the
Original  Pre-Funded Amount for deposit in the Pre-Funding  Account and (ii) the
Interest Coverage Amount for deposit in the Capitalized Interest Account.

(c) In connection  with the  conveyance  by GMACM of the GMACM Initial  Mortgage
Loans and any Subsequent HELs, GMACM further agrees,  at its own expense,  on or
prior to the Closing  Date with respect to the  Principal  Balances of the GMACM
Initial Mortgage Loans and on or prior to the related Subsequent Cut-Off Date in
the case of any  Subsequent  HELs, to indicate in its books and records that the

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<PAGE>

GMACM Initial  Mortgage  Loans have been sold to the Purchaser  pursuant to this
Agreement,  and, in the case of the Subsequent  HELs, to the Issuer  pursuant to
the related Subsequent Transfer Agreement,  and to deliver to the Purchaser true
and complete  lists of all of the Mortgage  Loans  specifying  for each Mortgage
Loan (i) its  account  number and (ii) its  Cut-Off  Date  Principal  Balance or
Subsequent  Cut-Off Date  Principal  Balance.  Mortgage  Loan Schedule -A, which
forms part of the Mortgage Loan Schedule, shall be marked as Exhibit 1-A to this
Agreement and is hereby incorporated into and made a part of this Agreement.

(d) In  connection  with the  conveyance  by WG  Trust  of the WG Trust  Initial
Mortgage Loans, WG Trust further agrees, at its own expense,  on or prior to the
Closing  Date with  respect to the  Principal  Balances of the WG Trust  Initial
Mortgage  Loans,  to indicate in its books and records that the WG Trust Initial
Mortgage  Loans  have been sold to the  Purchaser  pursuant  to this  Agreement.
GMACM,  as Servicer  of the WG Trust  Initial  Mortgage  Loans,  agrees,  and to
deliver to the Purchaser  true and complete  lists of all of the Mortgage  Loans
specifying  for each Mortgage  Loan (i) its account  number and (ii) its Cut-Off
Date  Principal  Balance.  Mortgage  Loan  Schedule  -B, which forms part of the
Mortgage Loan Schedule,  shall be marked as Exhibit 1-B to this Agreement and is
hereby incorporated into and made a part of this Agreement.

(e) In connection  with the  conveyance  by GMACM of the GMACM Initial  Mortgage
Loans and any  Subsequent  HELs and the  conveyance  by WG Trust of the WG Trust
Initial Mortgage Loans,  GMACM shall on behalf of the Purchaser  deliver to, and
deposit with the  Custodian,  at least five (5) Business Days before the Closing
Date in the case of an Initial  Mortgage  Loan,  and,  on behalf of the  Issuer,
three (3) Business  Days prior to the related  Subsequent  Transfer  Date in the
case of a Subsequent  HEL,  with respect to (i) below,  or within 90 days of the
Closing Date or the  Subsequent  Transfer Date, as the case may be, with respect
to (ii) through (v) below,  the following  documents or instruments with respect
to each related Mortgage Loan of the related Seller:

(i) the  original  Mortgage  Note  endorsed  without  recourse  in blank  (which
endorsement shall contain either an original signature or a facsimile  signature
of an authorized officer of the related Seller) or, with respect to any Mortgage
Loan as to  which  the  original  Mortgage  Note has  been  permanently  lost or
destroyed and has not been replaced, a Lost Note Affidavit;

(ii) the  original  Mortgage  with  evidence of  recording  thereon,  or, if the
original  Mortgage has not yet been returned from the public recording office, a
copy of the original Mortgage certified by the related Seller that such Mortgage
has been sent for recording,  or a county certified copy of such Mortgage in the
event the recording office keeps the original or if the original is lost;

(iii) assignments  (which may be included in one or more blanket  assignments if
permitted by applicable  law) of the Mortgage in  recordable  form from GMACM to
"Wells  Fargo Bank  Minnesota,  N.A.,  as Indenture  Trustee  under that certain
Indenture  dated as of October 30, 2000, for GMACM Mortgage Loan Trust 2000-HE3,
Mortgage Loan-Backed Term Notes" c/o the Servicer at an address specified by the
Servicer;

                                        4

<PAGE>

(iv)  originals  of  any  intervening  assignments  of  the  Mortgage  from  the
originator to GMACM, with evidence of recording thereon,  or, if the original of
any such  intervening  assignment  has not yet  been  returned  from the  public
recording office, a copy of such original  intervening  assignment  certified by
GMACM that such original intervening assignment has been sent for recording; and

(v) a true and correct copy of each assumption,  modification,  consolidation or
substitution agreement, if any, relating to such Mortgage Loan.

        Within the time period for the review of each Mortgage File set forth in
Section 2.2 of the  Custodial  Agreement,  if a material  defect in any Mortgage
File is discovered  which may materially  and adversely  affect the value of the
related Mortgage Loan, or the interests of the Indenture  Trustee (as pledgee of
the Mortgage Loans), the Noteholders or the  Certificateholders in such Mortgage
Loan, including GMACM's failure to deliver any document required to be delivered
to the Custodian on behalf of the Indenture Trustee  (provided,  that a Mortgage
File will not be deemed to contain a defect for an unrecorded  assignment  under
clause (iv) above if GMACM has submitted such assignment for recording  pursuant
to the  terms  of the  following  paragraph),  GMACM  shall  cure  such  defect,
repurchase the related  Mortgage Loan at the  Repurchase  Price or substitute an
Eligible  Substitute  Loan therefor upon the same terms and conditions set forth
in Section 3.1 hereof for breaches of  representations  and warranties as to the
Mortgage Loans, including that the Seller shall have the option to substitute an
Eligible  Substitute  Mortgage Loan or Loans for such Mortgage Loan only if such
substitution occurs within two years following the Closing Date.

        In  instances  where an original  Mortgage or any  original  intervening
assignment of Mortgage was not, in  accordance  with clauses (ii) or (iv) above,
delivered  by  GMACM or WG Trust  to the  Custodian  contemporaneously  with the
execution  and  delivery of this  Agreement,  GMACM or WG Trust will  deliver or
cause to be delivered the originals or certified copies of such documents to the
Custodian promptly upon receipt thereof.

        Upon sale of the Initial  Mortgage Loans, the ownership of each Mortgage
Note, each related  Mortgage and the contents of the related Mortgage File shall
be vested in the Purchaser  and the ownership of all records and documents  with
respect to the Initial Mortgage Loans that are prepared by or that come into the
possession of either Seller, as a seller of the Initial Mortgage Loans hereunder
or by GMACM in its  capacity as Servicer  under the  Servicing  Agreement  shall
immediately  vest in the  Purchaser,  and  shall be  promptly  delivered  to the
Servicer in the case of  documents  in  possession  of WG Trust and retained and
maintained  in trust by GMACM as the Servicer at the will of the  Purchaser,  in
such custodial  capacity  only. In the event that any original  document held by
GMACM hereunder in its capacity as Servicer is required pursuant to the terms of
this Section to be part of a Mortgage  File,  such  document  shall be delivered
promptly to the Custodian.  Each Seller's  records will  accurately  reflect the
sale of each Seller's respective Initial Mortgage Loan to the Purchaser.

        The Purchaser hereby acknowledges its acceptance of all right, title and
interest to the property conveyed to it pursuant to this Section 2.1.

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<PAGE>

(f) The parties hereto intend that the transactions set forth herein  constitute
a sale by the Sellers to the Purchaser of each of the Sellers' right,  title and
interest in and to their respective Initial Mortgage Loans and other property as
and to the  extent  described  above.  In the event the  transactions  set forth
herein are deemed not to be a sale, each Seller hereby grants to the Purchaser a
security  interest in all of such Seller's right,  title and interest in, to and
under all  accounts,  chattel  papers,  general  intangibles,  contract  rights,
certificates of deposit, deposit accounts,  instruments,  documents,  letters of
credit, money, advices of credit,  investment property, goods and other property
consisting of,  arising under or related to the Initial  Mortgage Loans and such
other property, to secure all of such Seller's obligations  hereunder,  and this
Agreement shall and hereby does constitute a security agreement under applicable
law. Each Seller agrees to take or cause to be taken such actions and to execute
such  documents,  including  without  limitation the filing of any  continuation
statements with respect to the UCC-1 financing  statements filed with respect to
the  Initial  Mortgage  Loans by the  Purchaser  on the  Closing  Date,  and any
amendments  thereto  required  to  reflect  a change  in the  name or  corporate
structure  of such  Seller  or the  filing  of any  additional  UCC-1  financing
statements  due to the  change  in  the  principal  office  or  jurisdiction  of
incorporation  of such  Seller,  as are  necessary  to perfect  and  protect the
Purchaser's interests in each Initial Mortgage Loan and the proceeds thereof.

Section 2.2 Sale of Subsequent HELs.

(a) Subject to the  conditions  set forth in  paragraphs  (b) and (c) below (the
satisfaction of which (other than the conditions specified in paragraphs (b)(i),
(b)(ii),  (b)(iii),  (b)(vi),  (b)(vii) and  (c)(iii))  shall be evidenced by an
Officer's Certificate of GMACM dated the date of the related Subsequent Transfer
Date), in  consideration  of the Issuer's payment of the purchase price provided
for in Section 2.3 on one or more  Subsequent  Transfer  Dates using  amounts on
deposit  in the  Pre-Funding  Account,  GMACM  may,  on the  related  Subsequent
Transfer Date, sell,  transfer,  assign, set over and convey without recourse to
the Issuer but subject to the other terms and  provisions of this  Agreement all
of the  right,  title  and  interest  of  GMACM  in and to (i)  Subsequent  HELs
identified  on the  related  Mortgage  Loan  Schedule  attached  to the  related
Subsequent  Transfer  Agreement  delivered by GMACM on such Subsequent  Transfer
Date (ii) all money due or to become  due on such  Subsequent  HEL and after the
related  Subsequent  Cut-Off  Date and  (iii)  all items  with  respect  to such
Subsequent  HELs to be  delivered  pursuant  to Section  2.1 above and the other
items in the related Mortgage Files; provided,  however, that GMACM reserves and
retains all right,  title and interest in and to principal received and interest
accruing on any Subsequent HEL prior to the related Subsequent Cut-Off Date. Any
transfer to the Issuer by GMACM of  Subsequent  HELs shall be  absolute,  and is
intended  by the Issuer and GMACM to  constitute  and to be treated as a sale of
such  Subsequent  HELs by  GMACM  to the  Issuer.  In the  event  that  any such
transaction is deemed not to be a sale,  GMACM hereby grants to the Issuer as of
each Subsequent Transfer Date a security interest in all of GMACM's right, title
and interest in, to and under all accounts, chattel papers, general intangibles,
contract  rights,  certificates  of  deposit,  deposit  accounts,   instruments,
documents,  letters of credit,  money,  advices of credit,  investment property,
goods and other property  consisting of, arising under or related to the related
Subsequent  HELs and such other property,  to secure all of GMACM's  obligations
hereunder,  and this  Agreement  shall  constitute  a security  agreement  under
applicable  law.  GMACM  agrees to take or cause to be taken such actions and to
execute such  documents,  including the filing of all necessary  UCC-1 financing
statements  filed in the State of Delaware and the  Commonwealth of Pennsylvania
(which  shall be  submitted  for filing as of the  related  Subsequent  Transfer

                                        6

<PAGE>

Date),  any  continuation  statements  with respect  thereto and any  amendments
thereto required to reflect a change in the name or corporate structure of GMACM
or the filing of any additional UCC-1 financing  statements due to the change in
the  principal  office of GMACM,  as are  necessary  to perfect  and protect the
interests  of the  Issuer  and  its  assignees  in each  Subsequent  HEL and the
proceeds thereof.

        The  Issuer on each  Subsequent  Transfer  Date  shall  acknowledge  its
acceptance of all right,  title and interest to the related  Subsequent HELs and
other property, existing on the Subsequent Transfer Date and thereafter created,
conveyed to it pursuant to this Section 2.2.

        The Issuer  shall be entitled to all  scheduled  principal  payments due
after each  Subsequent  Cut-Off  Date,  all other  payments of principal due and
collected  after each  Subsequent  Cut-Off Date, and all payments of interest on
any related  Subsequent  HELs,  minus that portion of any such interest  payment
that is allocable to the period prior to the related Subsequent Cut-Off Date. No
scheduled  payments of principal due on Subsequent HELs on or before the related
Subsequent  Cut-Off Date and collected after such Subsequent  Cut-Off Date shall
belong to the Issuer pursuant to the terms of this Agreement.

(b) GMACM may transfer to the Issuer  Subsequent HELs and the other property and
rights related thereto  described in Section 2.2(a) above during the Pre-Funding
Period,  and the Issuer  shall cause to be released  funds from the  Pre-Funding
Account,  only upon the  satisfaction of each of the following  conditions on or
prior to the related Subsequent Transfer Date:

(i) GMACM shall have provided the Indenture Trustee and the Rating Agencies with
a timely  Addition Notice  substantially  in the form of Exhibit 3, which notice
shall be given no later than seven Business Days prior to the related Subsequent
Transfer Date, and shall designate the Subsequent HELs to be sold to the Issuer,
the  aggregate  Principal  Balance  of such  Subsequent  HELs as of the  related
Subsequent  Cut-Off Date and any other information  reasonably  requested by the
Indenture Trustee with respect to such Subsequent HELs;

(ii)  GMACM  shall  have  delivered  to the  Indenture  Trustee a duly  executed
Subsequent  Transfer  Agreement  substantially  in the  form of  Exhibit  2, (A)
confirming  the  satisfaction  of each condition  precedent and  representations
specified  in this  Section  2.2(b)  and in Section  2.2(c)  and in the  related
Subsequent Transfer Agreement and (B) including a Mortgage Loan Schedule listing
the Subsequent HELs;

(iii) as of each  Subsequent  Transfer  Date,  as  evidenced  by delivery to the
Indenture Trustee of the Subsequent Transfer Agreement in the form of Exhibit 2,
GMACM shall not be  insolvent,  made  insolvent by such transfer or aware of any
pending insolvency; and

(iv)  such  sale and  transfer  shall  not  result  in a  material  adverse  tax
consequence to the Issuer or, due to any action or inaction on the part of GMACM
to the Securityholders.

        In addition,  GMACM shall have delivered to the Issuer and the Indenture
Trustee  an  Opinion of Counsel  with  respect  to  certain  bankruptcy  matters

                                        7

<PAGE>

relating to the transfers of Subsequent  HELs, which Opinion of Counsel shall be
substantially  in the form of the  Opinion  of Counsel  delivered  to the Rating
Agencies  and the  Indenture  Trustee  on the  Closing  Date  regarding  certain
bankruptcy  matters,  within  30 days  after the end of the  Pre-Funding  Period
relating to all Subsequent HELs  transferred to the Trust during the Pre-Funding
Period and purchased, from funds on deposit in the Pre-Funding Account.

The  obligation  of the Issuer to purchase a  Subsequent  HEL on any  Subsequent
Transfer Date is subject to the following  conditions:  (i) each such Subsequent
HEL must satisfy the  representations  and  warranties  specified in the related
Subsequent  Transfer  Agreement and this  Agreement;  (ii) GMACM will not select
such Subsequent  HELs in a manner that it reasonably  believes is adverse to the
interests of the Noteholders;  (iii) GMACM will deliver to the Indenture Trustee
certain  Opinions of Counsel  described in Section  2.2(b) and acceptable to the
Indenture  Trustee with respect to the conveyance of such  Subsequent  HELs; and
(iv) as of the related  Subsequent Cut-Off Date each Subsequent HEL will satisfy
the  following  criteria:  (A) such  Subsequent  HEL may not be 30 or more  days
contractually  delinquent as of the related  Subsequent  Cut-Off Date;  (B) such
Subsequent HEL must be secured by a mortgage in a first or second lien position;
(C) such  Subsequent HEL must have a CLTV at origination of no more than 81.50%;
(D) such  Subsequent HEL must have an original term to maturity of not more than
360 months;  (E) such Subsequent HEL must have a Loan Rate of less than 11.230%;
(F)  such  Subsequent  HEL  must  have a  principal  balance  not in  excess  of
$31,750.00;  (G) such  Subsequent HEL may not have a credit score less than 693;
(H) such  Subsequent  HEL may not be secured by  non-owner  occupied  investment
properties or secondary residences; (I) such Subsequent HEL must be underwritten
in accordance with a full documentation  underwriting program; and (J) following
the  purchase  of such  Subsequent  HELs by the  Issuer,  as of each  Subsequent
Cut-Off  Date,  the Mortgage  Loans  included in the Trust Estate (by  aggregate
Principal  Balance)  must have the  following  characteristics:  (i) a  weighted
average Loan Rate of not less than 11.125%,  (ii) may not include balloon loans,
(iii) the  percentage of Mortgage  Loans secured by single family  residences or
residences  located  in PUDs may not be less  than  90.00%,  (iv) may not have a
concentration  in the State of California  in excess of 36.25%,  (v) will have a
weighted average credit score (excluding Mortgage Loans for which a credit score
is not available) of at least 694, and (vi) will have a weighted average CLTV at
origination  of not more  than  87.95%.  Subsequent  HELs  with  characteristics
materially varying from those set forth above may be purchased by the Issuer and
included in the Trust Estate  provided that (1) the addition of such  Subsequent
HELs will not materially  affect the aggregate  characteristics  of the Mortgage
Loans in the Trust Estate, (2) the Servicer has received  confirmation from each
Rating Agency that the inclusion of such Mortgage  Loans will not cause a Rating
Event and (3) the Servicer has received an Opinion of Counsel that the inclusion
of such Mortgage  Loans will not result in an Adverse  REMIC Event.  GMACM shall
not  transfer  Subsequent  HELs with the intent to  mitigate  losses on Mortgage
Loans previously transferred.

(c) Within five Business Days after each Subsequent  Transfer Date,  GMACM shall
deliver to the Rating  Agencies and the Indenture  Trustee a copy of the updated
Mortgage Loan Schedule  reflecting the Subsequent HELs in electronic  format (to
be followed by a hard copy).

                                        8

<PAGE>

Section 2.3    Payment of Purchase Price.

(a) The sale of the Initial Mortgage Loans shall take place on the Closing Date,
subject to and  simultaneously  with the deposit of the Initial  Mortgage  Loans
into the Trust  Estate,  the deposit of the Original  Pre-Funded  Amount and the
Interest  Coverage  Amount  into the  Pre-Funding  Account  and the  Capitalized
Interest Account, respectively, and the issuance of the Securities. The purchase
price (the "Purchase  Price") for the GMACM Initial Mortgage Loans to be paid by
the  Purchaser  to  GMACM  on the  Closing  Date  shall  be an  amount  equal to
$191,617,286.35 in immediately  available funds, together with the Certificates,
in respect of the Cut-Off Date Principal  Balances  thereof.  The Purchase Price
for the WG Trust Initial  Mortgage Loans to be paid by the Purchaser to WG Trust
on the Closing Date shall be an amount equal to  $269,766,667.10  in immediately
available funds, in respect of the Cut-Off Date Principal Balances thereof.  The
Purchase Price paid for any  Subsequent HEL by the Indenture  Trustee from funds
on deposit in the Pre-Funding  Account, at the direction of the Issuer, shall be
one-hundred  percent  (100%) of the Subsequent  Cut-Off Date  Principal  Balance
thereof (as  identified on the Mortgage  Loan  Schedule  attached to the related
Subsequent Transfer Agreement provided by GMACM).

(b) In consideration of the sale of the GMACM Initial Mortgage Loans by GMACM to
the  Purchaser  on the Closing  Date,  the  Purchaser  shall pay to GMACM on the
Closing Date by wire transfer of immediately  available  funds to a bank account
designated by GMACM,  the amount specified above in paragraph (a) for each GMACM
Initial Mortgage Loan; provided, that such payment may be on a net funding basis
if  agreed  by GMACM  and the  Purchaser.  In  consideration  of the sale of any
Subsequent  HEL by GMACM to the  Issuer,  the Issuer  shall pay to GMACM by wire
transfer of immediately  available funds to a bank account  designated by GMACM,
the amount specified above in paragraph (a) for each Subsequent HEL.

(c) In  consideration  of the sale of the WG Trust Initial  Mortgage Loans by WG
Trust to the Purchaser on the Closing Date, the Purchaser  shall pay to WG Trust
on the Closing Date by wire transfer of  immediately  available  funds to a bank
account  designated by WG Trust, the amount specified above in paragraph (a) for
each WG Trust Initial Mortgage Loan; provided, that such payment may be on a net
funding basis if agreed by WG Trust and the Purchaser.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES;
                               REMEDIES FOR BREACH

Section 3.1 GMACM Representations and Warranties.  GMACM represents and warrants
to the Purchaser, as of the Closing Date and as of each Subsequent Transfer Date
(or if otherwise specified below, as of the date so specified):

(a)     As to GMACM:

(i) GMACM is a corporation duly organized, validly existing and in good standing
under the laws of the  jurisdiction  governing its creation and existence and is

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<PAGE>

or will be in  compliance  with the laws of each  state in which  any  Mortgaged
Property is located to the extent necessary to ensure the enforceability of each
Mortgage Loan;

(ii) GMACM has the power and authority to make, execute, deliver and perform its
obligations under this Agreement and each Subsequent  Transfer Agreement and all
of the  transactions  contemplated  under  this  Agreement  and each  Subsequent
Transfer  Agreement,  and has taken all necessary  corporate action to authorize
the execution,  delivery and  performance of this Agreement and each  Subsequent
Transfer Agreement;

(iii) GMACM is not  required  to obtain the  consent of any other  Person or any
consents,  licenses,  approvals or  authorizations  from,  or  registrations  or
declarations  with, any governmental  authority,  bureau or agency in connection
with the execution,  delivery,  performance,  validity or enforceability of this
Agreement  or any  Subsequent  Transfer  Agreement,  except  for such  consents,
licenses,  approvals or  authorizations,  or registrations  or declarations,  as
shall have been obtained or filed, as the case may be;

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

(v) No litigation  before any court,  tribunal or governmental body is currently
pending, or to the knowledge of GMACM threatened,  against GMACM or with respect
to this  Agreement or any Subsequent  Transfer  Agreement that in the opinion of
GMACM has a reasonable  likelihood of resulting in a material  adverse effect on
the  transactions  contemplated  by this  Agreement or any  Subsequent  Transfer
Agreement;

(vi)    Reserved;

(vii) This Agreement and each Subsequent Transfer Agreement constitutes a legal,
valid and binding obligation of GMACM,  enforceable  against GMACM in accordance
with  its  terms,   except  as  enforceability  may  be  limited  by  applicable
bankruptcy, insolvency, reorganization,  moratorium or other similar laws now or
hereafter in effect  affecting the  enforcement of creditors'  rights in general
and except as such enforceability may be limited by general principles of equity
(whether  considered  in a proceeding  at law or in equity) or by public  policy
with respect to indemnification under applicable securities laws;

(viii)  This  Agreement  constitutes  a valid  transfer  and  assignment  to the
Purchaser of all right,  title and interest of GMACM in and to the GMACM Initial
Mortgage  Loans,  including the Cut-Off Date Principal  Balances with respect to
the GMACM Initial  Mortgage Loans,  all monies due or to become due with respect
thereto,  and all proceeds of such Cut-Off Date Principal  Balances with respect
to the  GMACM  Initial  Mortgage  Loans;  and  this  Agreement  and the  related
Subsequent Transfer Agreement,  when executed,  will constitute a valid transfer
and assignment to the Issuer of all right, title and interest of GMACM in and to
the  Subsequent  HELs,  including  the Cut-Off  Date  Principal  Balances of the

                                        10

<PAGE>

Subsequent HELs, all monies due or to become due with respect  thereto,  and all
proceeds of such  Subsequent  Cut-Off Date Principal  Balances and such funds as
are  from  time  to time  deposited  in the  Custodial  Account  (excluding  any
investment  earnings  thereon)  as assets  of the  Trust and all other  property
specified in the  definition of "Trust" as being part of the corpus of the Trust
conveyed to the Purchaser by GMACM; and

(ix) GMACM 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 otherwise) or operations of GMACM
or its properties or might have  consequences  that would  materially  adversely
affect its performance hereunder;

(b) As to each Initial Mortgage Loan (except as otherwise specified below) as of
the  Closing  Date,  or with  respect to each  Subsequent  HEL as of the related
Subsequent Transfer Date (except as otherwise specified below):

(i) The information set forth in the Mortgage Loan Schedule with respect to each
Mortgage Loan or the Mortgage Loans is true and correct in all material respects
as of  the  date  or  dates  respecting  which  such  information  is  initially
furnished;

(ii) With respect to each of the WG Trust  Initial  Mortgage  Loans,  as of each
respective  Prior Transfer Date: (A) the related  Mortgage Note and the Mortgage
had not been assigned or pledged,  except for any  assignment or pledge that had
been  satisfied and released,  (B)  immediately  prior to the assignment of such
Mortgage Loans to Walnut Grove, GMACM had good title thereto and (C) immediately
prior to such  assignment,  GMACM was the sole owner and holder of the  Mortgage
Loan free and clear of any and all liens,  encumbrances,  pledges,  or  security
interests  (other than,  with respect to any HEL in a second lien position,  the
lien of the  related  first  mortgage)  of any  nature  and had full  right  and
authority, under all governmental and regulatory bodies having jurisdiction over
the  ownership  of the  applicable  Mortgage  Loan,  to sell and assign the same
pursuant to the Walnut Grove Purchase Agreement;

(iii) With respect to the GMACM Initial Mortgage Loans: (A) the related Mortgage
Note  and the  Mortgage  have not  been  assigned  or  pledged,  except  for any
assignment or pledge that has been satisfied and released, (B) immediately prior
to the assignment of the Mortgage  Loans to the Purchaser,  GMACM has good title
thereto and (C) GMACM is the sole owner and holder of the Mortgage Loan free and
clear of any and all liens, encumbrances,  pledges, or security interests (other
than,  with respect to any Mortgage Loan in a second lien position,  the lien of
the  related  first  mortgage)  of any nature and has full right and  authority,
under all  governmental  and  regulatory  bodies  having  jurisdiction  over the
ownership of the applicable  Mortgage Loans to sell and assign the same pursuant
to this Agreement or the related Subsequent Transfer Agreement, as applicable;

(iv) To the best of  GMACM's  knowledge,  there is no valid  offset,  defense or
counterclaim of any obligor under any Mortgage Note or Mortgage;

(v) To the best of GMACM's knowledge,  there is no delinquent recording or other
tax or fee or assessment lien against any related Mortgaged Property;

                                        11

<PAGE>

(vi) To the  best of  GMACM's  knowledge,  there  is no  proceeding  pending  or
threatened  for the  total or  partial  condemnation  of the  related  Mortgaged
Property;

(vii) To the best of GMACM's knowledge, there are no mechanics' or similar liens
or claims  which  have been  filed for work,  labor or  material  affecting  the
related  Mortgaged  Property  which are,  or may be liens  prior or equal to, or
subordinate with, the lien of the related Mortgage, except liens which are fully
insured against by the title insurance policy referred to in clause (xi);

(viii) As of the Cut-Off Date or related  Subsequent  Cut-Off  Date, no Mortgage
Loan was 30 days or more delinquent in payment of principal or interest;

(ix) With respect to the GMACM Initial Mortgage Loans, the related Mortgage File
contain or will contain,  in  accordance  with Section  2.1(c)(ii),  each of the
documents and instruments specified to be included therein;

(x) To the best of the  GMACM's  knowledge,  the related  Mortgage  Note and the
related Mortgage at the time it was made complied in all material  respects with
applicable local, state and federal laws;

(xi) A title  search  or other  assurance  of title  customary  in the  relevant
jurisdiction was obtained with respect to each Mortgage Loan;

(xii)  None of the  Mortgaged  Properties  is a  mobile  home or a  manufactured
housing unit that is not permanently attached to its foundation;

(xiii) As of the Cut-Off  Date, no more than  approximately  34.62% and 6.49% of
the HELs, by Cut-Off Date Principal Balance, are secured by Mortgaged Properties
located in California and New York, respectively, and no more than approximately
44.42% and 5.24% of the Home  Loans,  by Cut-Off  Date  Principal  Balance,  are
secured by Mortgaged Properties located in California and Florida, respectively;

(xiv)  As  of  the  Cut-Off  Date  or  Subsequent  Cut-Off  Date,  the  Combined
Loan-to-Value Ratio for each HEL was not in excess of 102%;

(xv) As of the Cut-Off Date or Subsequent Cut-Off Date, the Loan-to-Value  Ratio
for each Home Loan was not in excess  of 125%,  with the  exception  of one Home
Loan,  which had a loan-to-value  ratio,  calculated by dividing the outstanding
principal balance of the Home Loan as of the Cut-off Date by the appraised value
of the related Mortgaged Property as of the Cut-off Date, of less than 125%;

(xvi)  GMACM  has not  transferred  the  GMACM  Initial  Mortgage  Loans  to the
Purchaser or any Subsequent HELs to the Issuer with any intent to hinder,  delay
or defraud any of its creditors;

                                        12

<PAGE>

(xvii)  Reserved;

(xviii)  Within a loan type,  and except as required  by  applicable  law,  each
Mortgage  Note and each  Mortgage is an  enforceable  obligation  of the related
Mortgagor;

(xix) To the best  knowledge  of GMACM,  the physical  property  subject to each
Mortgage is free of material damage and is in acceptable repair;

(xx) GMACM has not  received a notice of  default  of any senior  mortgage  loan
related to a Mortgaged  Property  which has not been cured by a party other than
the Servicer;

(xxi) If any of the  Mortgage  Loans are secured by a leasehold  interest,  with
respect to each leasehold interest: the use of leasehold estates for residential
properties  is an  accepted  practice  in the area where the  related  Mortgaged
Property is located;  residential  property in such area consisting of leasehold
estates is readily marketable;  the lease is recorded and no party is in any way
in breach of any  provision  of such lease;  the  leasehold is in full force and
effect  and is not  subject  to any  prior  lien or  encumbrance  by  which  the
leasehold  could be  terminated  or subject to any  charge or  penalty;  and the
remaining  term of the lease does not  terminate  less than ten years  after the
maturity date of such Mortgage Loan;

(xxii)  None of the Mortgage Loans is a reverse mortgage loan;

(xxiii) No  Mortgage  Loan has an  original  term to  maturity  in excess of 360
months;

(xxiv)  All of the  HELs are  fixed  rate and are  fully  amortizing.  As of the
Cut-off  Date,  the Loan  Rates on the HELs  range  between  7.50% per annum and
14.625% per annum. The weighted average remaining term to stated maturity of the
HELs as of the Cut-off Date is approximately 205 months;

(xxv) 67.33% of the Home Loans are fixed rate,  fully amortizing Home Loans with
Loan Rates that range between 9.50% per annum and 12.625% per annum;

(xxvi) 32.67% of the Home Loans are adjustable rate, fully amortizing Home Loans
with Loan Rates that range between 8.875% per annum and 12.950% per annum;

(xxvii) The weighted average remaining term to stated maturity of the Home Loans
as of the Cut-off Date is approximately 346 months;

(xxviii)  (A)  Each  Mortgaged  Property  consists  of a single  parcel  of real
property  with a single  family  or an  individual  condominium  unit;  (B) with
respect to the HELs (a) approximately  5.84% (by Cut-Off Date Principal Balance)
are secured by real property improved by individual  condominium  units, and (b)
approximately  89.93% (by Cut-Off  Date  Principal  Balance) are secured by real
property with a single family residence erected thereon; and (C) with respect to
the Home Loans (a) approximately  9.20% (by Cut-Off Date Principal  Balance) are
secured by real  property  improved by  individual  condominium  units,  and (b)
approximately  90.80% (by Cut-Off  Date  Principal  Balance) are secured by real
property with a single family residence erected thereon;

                                        13

<PAGE>

(xxix) As of the Cut-Off  Date no Initial HEL had a principal  balance in excess
of  $248,895.62  and  no  Home  Loan  had  a  principal  balance  in  excess  of
$491,675.79;

(xxx) No more  than  approximately  96.16% of the HELs,  which  are  83.52%  the
Initial Mortgage Loans, by aggregate  Principal  Balance as of the Cut-Off Date,
are secured by second liens; and none of the Home Loans are secured by second or
more junior liens on the Mortgaged Property;

(xxxi) A policy of hazard  insurance and flood  insurance,  if  applicable,  was
required  from the  Mortgagor  for the Mortgage  Loan when the Mortgage Loan was
originated;

(xxxii)  Other than with  respect  to a payment  default,  there is no  material
default,  breach, violation or event of acceleration existing under the terms of
any Mortgage  Note or Mortgage and, to the best of GMACM's  knowledge,  no event
which, with notice and expiration of any grace or cure period,  would constitute
a material default,  breach,  violation or event of acceleration under the terms
of any  Mortgage  Note  or  Mortgage,  and no  such  material  default,  breach,
violation  or event  of  acceleration  has been  waived  by  GMACM  involved  in
originating or servicing the related Mortgage Loan;

(xxxiii) To the best knowledge of GMACM,  no instrument of release or waiver has
been executed in connection with the Mortgage  Loans,  and no Mortgagor has been
released, in whole or in part from its obligations in connection therewith;

(xxxiv) With respect to each HEL secured by a second lien, either (a) no consent
for such  Mortgage  Loan was  required  by the holder or holders of the  related
prior lien,  (b) such consent has been  obtained and is contained in the related
Mortgage  File or (c) no consent for such Mortgage Loan was required by relevant
law;

(xxxv) With respect to each Mortgage Loan, to the extent permitted by applicable
law, the related Mortgage contains a customary provision for the acceleration of
the payment of the unpaid  Principal  Balance of the Mortgage  Loan in the event
the  related  Mortgaged  Property  is sold  without  the  prior  consent  of the
mortgagee thereunder;

(xxxvi)  None of the Mortgage  Loans are "high cost loans",  subject to the Home
Ownership and Equity Protection Act of 1994; and

(xxxvii) With respect to each  Mortgage  Loan,  the Mortgage Loan  constitutes a
"qualified  mortgage"  under  Section  860G(a)(3)(A)  of the Code  and  Treasury
Regulation Section 1.860G-2(a)(1).

               With  respect to this  Section  3.1(b),  representations  made by
GMACM  with  respect  to the WG Trust  Initial  Mortgage  Loans,  made as of the
Cut-Off Date or the Closing Date, are made by GMACM in its capacity as Servicer.
Representations  made by GMACM  with  respect to the WG Trust  Initial  Mortgage
Loans, made as of any other date, are made by GMACM in its capacity as Seller.

                                        14

<PAGE>

     (c) WG  Trust  Representations  and  Warranties.  WG Trust  represents  and
warrants to the Purchaser, as of the Closing Date:

               (i)    As to WG Trust:

(i) WG Trust is a Delaware  business trust duly organized,  validly existing and
in good standing under the laws of the State of Delaware;

(ii) WG Trust has the power and authority to make, execute,  deliver and perform
its obligations  under this Agreement and all of the  transactions  contemplated
under  this  Agreement,  and has taken all  necessary  action to  authorize  the
execution, delivery and performance of this Agreement;

(iii) WG Trust is not  required to obtain the consent of any other Person or any
consents,  licenses,  approvals or  authorizations  from,  or  registrations  or
declarations  with, any governmental  authority,  bureau or agency in connection
with the execution,  delivery,  performance,  validity or enforceability of this
Agreement, except for such consents, licenses,  approvals or authorizations,  or
registrations or declarations, as shall have been obtained or filed, as the case
may be;

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

(v) No litigation  before any court,  tribunal or governmental body is currently
pending,  or to the knowledge of WG Trust  threatened,  against WG Trust or with
respect  to this  Agreement  that in the  opinion  of WG Trust has a  reasonable
likelihood  of  resulting  in a  material  adverse  effect  on the  transactions
contemplated by this Agreement;

(vi) This  Agreement  constitutes  a legal,  valid and binding  obligation of WG
Trust,  enforceable  against WG Trust in  accordance  with its terms,  except as
enforceability   may  be   limited   by   applicable   bankruptcy,   insolvency,
reorganization,  moratorium  or other  similar  laws now or  hereafter in effect
affecting the  enforcement  of  creditors'  rights in general and except as such
enforceability   may  be  limited  by  general  principles  of  equity  (whether
considered in a proceeding at law or in equity) or by public policy with respect
to indemnification under applicable securities laws;

(vii)  This  Agreement  constitutes  a  valid  transfer  and  assignment  to the
Purchaser  of all right,  title and  interest of WG Trust in and to the WG Trust
Initial  Mortgage  Loans,  including  the Cut-Off Date  Principal  Balances with
respect to the WG Trust Initial  Mortgage Loans, all monies due or to become due
with respect thereto,  and all proceeds of such Cut-Off Date Principal  Balances
with respect to the WG Trust Initial Mortgage Loans; and

(viii) WG Trust 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

                                        15

<PAGE>

and adversely affect the condition  (financial or otherwise) or operations of WG
Trust or its  properties  or  might  have  consequences  that  would  materially
adversely affect its performance hereunder.

               (ii)   As to the WG Trust Initial Mortgage Loans:

(i) With  respect  to the WG  Trust  Initial  Mortgage  Loans:  (A) The  related
Mortgage Note and the Mortgage have not been assigned or pledged, except for any
assignment or pledge that has been satisfied and released, (B) immediately prior
to the  assignment  of the Mortgage  Loans to the  Purchaser,  WG Trust had good
title thereto and (C) WG Trust is the sole owner and holder of the Mortgage Loan
free  and  clear  of any and  all  liens,  encumbrances,  pledges,  or  security
interests  (other  than,  with  respect to any  Mortgage  Loan in a second  lien
position,  the lien of the related  first  mortgage)  of any nature and has full
right and  authority,  under  all  governmental  and  regulatory  bodies  having
jurisdiction  over the ownership of the  applicable  Mortgage  Loans to sell and
assign the same pursuant to this Agreement;

(ii) For each WG Trust Initial Mortgage Loan, the related Mortgage File contains
or will contain,  in accordance with Section  2.1(c)(ii),  each of the documents
and instruments specified to be included therein;

(iii) WG Trust has not  transferred  the WG Trust Initial  Mortgage Loans to the
Purchaser with any intent to hinder, delay or defraud any of its creditors; and

(iv) No  instrument  of  release  or  waiver  has been  executed  by WG Trust in
connection with the WG Trust Initial  Mortgage Loans,  and no Mortgagor has been
released by WG Trust,  in whole or in part,  from its  obligations in connection
therewith.

        (d) Upon  discovery by either Seller or upon notice from the  Purchaser,
the Issuer,  the Owner  Trustee,  the  Indenture  Trustee or the  Custodian,  as
applicable,  of  a  breach  of  such  Seller's  respective   representations  or
warranties  in  paragraph  (a) or (c)(i)  above that  materially  and  adversely
affects the interests of the  Securityholders  in any Mortgage Loan, GMACM or WG
Trust, as applicable,  shall,  within 90 days of its discovery or its receipt of
notice of such breach,  either (i) cure such breach in all material  respects or
(ii) to the extent  that such  breach is with  respect  to a Mortgage  Loan or a
Related  Document,  either (A) repurchase  such Mortgage Loan from the Issuer at
the Repurchase  Price, or (B) substitute one or more Eligible  Substitute  Loans
for such Mortgage Loan, in each case in the manner and subject to the conditions
and limitations set forth below.

        Upon discovery by either Seller or upon notice from the  Purchaser,  the
Issuer,  the  Owner  Trustee,  the  Indenture  Trustee  or  the  Custodian,   as
applicable,  of  a  breach  of  such  Seller's  respective   representations  or
warranties  in  paragraphs  (b) or (c)(ii)  above,  with respect to any Mortgage
Loan,  or upon  the  occurrence  of a  Repurchase  Event,  that  materially  and
adversely affects the interests of the  Securityholders or the Purchaser in such
Mortgage Loan (notice of which shall be given to the Purchaser by the respective
Seller,  if it  discovers  the  same),  notwithstanding  such  Seller's  lack of
knowledge  with respect to the  substance of such  representation  and warranty,
such Seller shall,  within 90 days after the earlier of its discovery or receipt
of notice  thereof or, if such breach has the effect of making the Mortgage Loan

                                        16

<PAGE>

fail to be a  "qualified  mortgage"  within the  meaning of Section  860G of the
Internal Revenue Code, within 90 days after the discovery thereof by either such
Seller, the Servicer,  the Issuer,  the Owner Trustee,  the Indenture Trustee or
the  Purchaser,  either cure such  breach or  Repurchase  Event in all  material
respects  or either (i)  repurchase  such  Mortgage  Loan from the Issuer at the
Repurchase  Price, or (ii) substitute one or more Eligible  Substitute Loans for
such Mortgage Loan, in each case in the manner and subject to the conditions set
forth below;  provided  that the Seller shall have the option to  substitute  an
Eligible  Substitute  Mortgage Loan or Loans for such Mortgage Loan only if such
substitution  occurs within two years following the Closing Date. The Repurchase
Price for any such Mortgage Loan  repurchased  by such Seller shall be deposited
or caused to be deposited  by the  Servicer  into the  Custodial  Account.  Upon
discovery by the Purchaser,  the Servicer,  the Issuer, the Owner Trustee or the
Indenture  Trustee of any breach  described in this Section  3.1(d),  such party
shall give  prompt  written  notice  thereof to GMACM and, in the case of the WG
Trust Initial Mortgage Loans, to WG Trust.

        In the event  that  either  Seller  elects  to  substitute  an  Eligible
Substitute  Loan or Loans for a Deleted Loan  pursuant to this Section 3.1, such
Seller shall deliver to the  Custodian on behalf of the Issuer,  with respect to
such Eligible Substitute Loan or Loans, the original Mortgage Note and all other
documents and  agreements as are required by Section  2.1(c),  with the Mortgage
Note endorsed as required by Section 2.1(c). No substitution will be made in any
calendar month after the Determination Date for such month. Monthly Payments due
with respect to Eligible Substitute Loans in the month of substitution shall not
be part of the Trust Estate and will be retained by the Servicer and remitted by
the Servicer to such Seller on the next succeeding Payment Date, provided that a
payment equal to the applicable Monthly Payment for such month in respect of the
Deleted  Loan has been  received by the Issuer.  For the month of  substitution,
distributions  to the Note Payment Account  pursuant to the Servicing  Agreement
will  include  the  Monthly  Payment  due on a Deleted  Loan for such  month and
thereafter  such Seller  shall be  entitled  to retain all  amounts  received in
respect of such Deleted  Loan.  The Servicer  shall amend or cause to be amended
the Mortgage  Loan  Schedule to reflect the removal of such Deleted Loan and the
substitution  of the Eligible  Substitute  Loan or Loans and the Servicer  shall
deliver  the  amended  Mortgage  Loan  Schedule  to the  Owner  Trustee  and the
Indenture Trustee. Upon such substitution, the Eligible Substitute Loan or Loans
shall be subject to the terms of this  Agreement and the Servicing  Agreement in
all respects,  such Seller shall be deemed to have made the  representations and
warranties  with respect to the Eligible  Substitute  Loan contained  herein set
forth in Section  3.1(b)  (other than  clauses  (xiii),  (xiv),  (xxiv),  (xxv),
(xxvi), (xxvii),  (xxviii) (B) and (C)and (xxx) thereof), with respect to GMACM,
or the  representations and warranties set forth in Section 3.1(c), with respect
to WG  Trust,  each as of the  date of  substitution  and a  representation  and
warranty that each Mortgage Loan so substituted is an Eligible  Substitute  Loan
as of the date of substitution, and such Seller shall be obligated to repurchase
or substitute for any Eligible  Substitute  Loan as to which a Repurchase  Event
has occurred as provided  herein.  In connection with the substitution of one or
more Eligible Substitute Loans for one or more Deleted Loans, the Servicer shall
determine the amount (such amount, a "Substitution  Adjustment Amount"), if any,
by which the aggregate  principal balance of all such Eligible  Substitute Loans
as of the date of substitution is less than the aggregate  principal  balance of
all such  Deleted  Loans  (after  application  of the  principal  portion of the
Monthly Payments due in the month of substitution  that are to be distributed to
the Note  Payment  Account  in the month of  substitution).  Such  Seller  shall
deposit the amount of such shortfall  into the Custodial  Account on the date of
substitution, without any reimbursement therefor.

                                        17

<PAGE>

        Upon  receipt by the  Indenture  Trustee on behalf of the Issuer and the
Custodian of written notification, signed by a Servicing Officer, of the deposit
of such Repurchase Price or of such substitution of an Eligible  Substitute Loan
(together with the complete related Mortgage File) and deposit of any applicable
Substitution  Adjustment  Amount as provided above, the Custodian,  on behalf of
the Indenture  Trustee,  shall release to such Seller the related  Mortgage File
for the Mortgage Loan being  repurchased  or  substituted  for and the Indenture
Trustee on behalf of the Issuer shall  execute and deliver such  instruments  of
transfer or assignment prepared by the Servicer,  in each case without recourse,
as shall be necessary to vest in such Seller or its designee  such Mortgage Loan
released pursuant hereto and thereafter such Mortgage Loan shall not be an asset
of the Issuer.

        It is understood  and agreed that the  obligation of each Seller to cure
any breach,  or to repurchase  or  substitute  for any Mortgage Loan as to which
such a breach has occurred and is continuing,  shall  constitute the sole remedy
respecting   such  breach   available  to  the   Purchaser,   the  Issuer,   the
Certificateholders  (or the Owner  Trustee on behalf of the  Certificateholders)
and the  Noteholders  (or the  Indenture  Trustee on behalf of the  Noteholders)
against such Seller.

        It is understood and agreed that the  representations and warranties set
forth in this  Section 3.1 shall  survive  delivery of the  respective  Mortgage
Files to the Issuer or the Custodian.

                                   ARTICLE IV

                               SELLERS' COVENANTS

Section 4.1 Covenants of the Sellers.  Each Seller hereby covenants that, except
for the transfer  hereunder  and,  with respect to GMACM,  as of any  Subsequent
Transfer Date, neither Seller will sell, pledge, assign or transfer to any other
Person, or grant,  create, incur or assume any Lien on any Mortgage Loan, or any
interest  therein.  Each  Seller  shall  notify  the  Issuer (in the case of the
Initial  Mortgage Loans, as assignee of the Purchaser),  of the existence of any
Lien  (other than as  provided  above) on any  Mortgage  Loan  immediately  upon
discovery thereof; and each Seller shall defend the right, title and interest of
the  Issuer (in the case of the  Initial  Mortgage  Loans,  as  assignee  of the
Purchaser)  in, to and under the  Mortgage  Loans  against  all  claims of third
parties claiming through or under such Seller;  provided,  however, that nothing
in this Section 4.1 shall be deemed to apply to any Liens for municipal or other
local taxes and other governmental charges if such taxes or governmental charges
shall not at the time be due and payable or if either Seller shall  currently be
contesting the validity thereof in good faith by appropriate Proceedings.

                                   ARTICLE V

                                    SERVICING

Section 5.1  Servicing.  GMACM shall service the Mortgage  Loans pursuant to the
terms and conditions of the Servicing  Agreement and the Program Guide and shall
service the  Mortgage  Loans  directly or through one or more  sub-servicers  in
accordance therewith.

                                        18

<PAGE>

                                   ARTICLE VI

                         INDEMNIFICATION BY THE SELLERS
                       WITH RESPECT TO THE MORTGAGE LOANS

Section 6.1  Limitation  on  Liability of the  Sellers.  None of the  directors,
officers,  employees  or agents of either  GMACM or WG Trust  shall be under any
liability  to the  Purchaser,  it  being  expressly  understood  that  all  such
liability  is  expressly   waived  and  released  as  a  condition  of,  and  as
consideration  for, the execution of this Agreement and any Subsequent  Transfer
Agreement.  Except as and to the  extent  expressly  provided  in the  Servicing
Agreement,  GMACM and WG Trust shall not be under any  liability  to the Issuer,
the Owner Trustee, the Indenture Trustee or the Securityholders. GMACM, WG Trust
and any director,  officer,  employee or agent of GMACM or WG Trust, 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.

                                  ARTICLE VII

                                   TERMINATION

Section 7.1  Termination.  The obligations and  responsibilities  of the parties
     hereto shall terminate upon the termination of the Trust Agreement.

                                  ARTICLE VIII

                            MISCELLANEOUS PROVISIONS

Section 8.1  Amendment.  This  Agreement may be amended from time to time by the
parties  hereto  by  written  agreement,  provided  that  the  Servicer  and the
Indenture  Trustee  shall have received an Opinion of Counsel to the effect that
such amendment will not result in an Adverse REMIC Event.

Section 8.2 GOVERNING LAW. THIS AGREEMENT  SHALL BE GOVERNED BY AND 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 8.3 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 registered mail, postage prepaid, addressed as follows:

(i)     if to the GMACM:

                          GMAC Mortgage Corporation
                          100 Witmer Road
                          Horsham, Pennsylvania  19044
                          Attention:  Barry Bier, Senior Vice President
                          Re:  GMACM Mortgage Loan Trust 2000-HE3;

                                        19

<PAGE>

(ii)    if to WG Trust:

                          Walnut Grove Home Equity Loan Trust
                              2000-A
                          c/o Wilmington Trust Company
                          1100 North Market Street
                          Wilmington, Delaware 19890
                          Attention: Walnut Grove Home Equity Loan
                                Trust 2000-A
                          Re:GMACM Mortgage Loan Trust 2000-HE3;

(iii)   if to the Purchaser:

                          Residential Asset Mortgage Products, Inc.
                          8400 Normandale Lake Boulevard
                          Minneapolis, Minnesota 55437
                          Attention:President
                          Re:  GMACM Mortgage Loan Trust 2000-HE3;

(iv)    if to the Indenture Trustee:

                          Wells Fargo Bank Minnesota, N.A.
                          11000 Broken Land Parkway
                          Columbia, Maryland 21044
                          Attention:  GMACM Mortgage Loan Trust 2000-HE3; or

(v)     if to the Issuer:

                          c/o Wilmington Trust Company, as Owner Trustee
                          Rodney Square North
                          1100 North Market Street
                          Wilmington, Delaware 19890-0001
                          Re:  GMACM Mortgage Loan Trust 2000-HE3;

or, with respect to any of the foregoing  Persons,  at such other address as may
hereafter be furnished to the other foregoing Persons in writing.

Section 8.4  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 of  enforceability  of
the other provisions of this Agreement.

Section 8.5 Relationship of Parties. Nothing herein contained shall be deemed or
construed to create a partnership or joint venture among the parties hereto, and
the services of the GMACM shall be rendered as an independent contractor and not
as agent for the Purchaser.

                                        20

<PAGE>

Section  8.6  Counterparts.  This  Agreement  may be  executed  in any number of
counterparts, each of which, when so executed, shall be deemed to be an original
and such counterparts, together, shall constitute one and the same agreement.

Section 8.7  Further  Agreements.  The parties  hereto each agree to execute and
deliver to the other such additional documents, instruments or agreements as may
be necessary or appropriate to effectuate the purposes of this Agreement.

Section 8.8 Intention of the Parties.  It is the intention of the parties hereto
that the Purchaser  will be purchasing on the Closing Date, and the Sellers will
be selling on the Closing  Date,  the Initial  Mortgage  Loans,  rather than the
Purchaser  providing a loan to the Sellers secured by the Initial Mortgage Loans
on the Closing Date;  and that the Issuer will be purchasing on each  Subsequent
Transfer Date, and GMACM will be selling on each  Subsequent  Transfer Date, the
related  Subsequent  HELs,  rather  than the  Issuer  providing  a loan to GMACM
secured  by the  related  Subsequent  HELs on  each  Subsequent  Transfer  Date.
Accordingly,  the  parties  hereto  each  intend to treat this  transaction  for
federal income tax purposes as (i) a sale by the Sellers,  and a purchase by the
Purchaser,  of the Initial Mortgage Loans on the Closing Date and (ii) a sale by
GMACM,  and a purchase by the Issuer,  of the  related  Subsequent  HELs on each
Subsequent Transfer Date. The Purchaser and the Issuer shall each have the right
to review  the  Mortgage  Loans  and the  Related  Documents  to  determine  the
characteristics  of the Mortgage  Loans which will affect the federal income tax
consequences of owning the Mortgage Loans,  and each Seller shall cooperate with
all  reasonable  requests  made by the  Purchaser or the Issuer in the course of
such review.

Section 8.9    Successors and Assigns; Assignment of This Agreement.

(a) This Agreement  shall bind and inure to the benefit of and be enforceable by
the parties hereto and their respective  permitted  successors and assigns.  The
obligations of each Seller under this Agreement  cannot be assigned or delegated
to a third  party  without  the  consent of the  Purchaser  (and the Issuer with
respect to the transfer of any Subsequent  HELs),  which consent shall be at the
Purchaser's  sole  discretion  (and the Issuer's sole discretion with respect to
the transfer of any Subsequent HELs); provided,  that each Seller may assign its
obligations  hereunder to any Affiliate of such Seller, to any Person succeeding
to the business of such  Seller,  to any Person into which such Seller is merged
and to any Person  resulting  from any merger,  conversion or  consolidation  to
which  such  Seller is a party.  The  parties  hereto  acknowledge  that (i) the
Purchaser  is  acquiring  the  Initial   Mortgage   Loans  for  the  purpose  of
contributing  them to the GMACM Mortgage Loan Trust 2000-HE3 and (ii) the Issuer
is acquiring the Subsequent HELs for the purpose of pledging the Subsequent HELs
to the Indenture Trustee for the benefit of the Noteholders.

(b) As an  inducement  to the  Purchaser  and the Issuer to purchase the Initial
Mortgage  Loans and to the Issuer to purchase any Subsequent  HELs,  each Seller
acknowledges  and consents to (i) the  assignment by the Purchaser to the Issuer
of all of the Purchaser's  rights against each Seller pursuant to this Agreement
insofar as such rights relate to the Initial  Mortgage Loans  transferred to the
Issuer and to the  enforcement or exercise of any right or remedy against either
Seller  pursuant  to this  Agreement  by the  Issuer,  (ii) the  enforcement  or
exercise of any right or remedy against either Seller pursuant to this Agreement

                                        21

<PAGE>

by or on behalf of the Issuer and (iii) the  Issuer's  pledge of its interest in
this  Agreement to the Indenture  Trustee and the  enforcement  by the Indenture
Trustee of any such right or remedy against either Seller  following an Event of
Default  under  the  Indenture.  Such  enforcement  of a right or  remedy by the
Issuer,  the Owner Trustee or the Indenture Trustee,  as applicable,  shall have
the same  force  and  effect  as if the right or  remedy  had been  enforced  or
exercised by the Purchaser or the Issuer directly.

Section 8.10 Survival.  The  representations  and warranties made herein by each
Seller and the provisions of Article VI hereof shall survive the purchase of the
Initial Mortgage Loans hereunder and any transfer of Subsequent HELs pursuant to
this Agreement and the related Subsequent Transfer Agreement.

                                        22

<PAGE>

        IN WITNESS  WHEREOF,  the parties  hereto have caused  their names to be
signed to this  Mortgage Loan Purchase  Agreement by their  respective  officers
thereunto duly authorized as of the day and year first above written.

                 RESIDENTIAL ASSET MORTGAGE PRODUCTS, INC., as Purchaser

                           By: /s/ Patricia C. Taylor
                                                Name:  Patricia C. Taylor
                                                Title:    Vice President

                                            GMAC MORTGAGE CORPORATION,
                                               as Seller and Servicer

                            By: /s/ Thomas J. O'Hara
                                                Name:  Thomas J. O'Hara
                                                Title:    Vice President

                  WALNUT GROVE HOME EQUITY LOAN TRUST 2000-A, as Seller

                  By: WILMINGTON TRUST COMPANY,
                              not in its individual capacity but solely as
                              Owner Trustee

                  By: /s/ Anita Dallago
                                    Name:  Anita Dallago
                                    Title:    Financial Services Officer

                                        23

<PAGE>

                   GMACM MORTGAGE LOAN TRUST 2000-HE3, as Issuer

                   By: WILMINGTON TRUST COMPANY,
                          not in its individual capacity but solely as
                          Owner Trustee

                  By: /s/ Anita Dallago
                                    Name:  Anita Dallago
                                    Title:    Financial Services Officer

                   WELLS FARGO BANK MINNESOTA, N.A., as Indenture Trustee

                 By: /s/ Peter A. Gobell
                                    Name:  Peter A. Gobell
                                    Title:    Assistant Vice President

                                        24
<PAGE>

                                    EXHIBIT 1

                             MORTGAGE LOAN SCHEDULE

                          [TO BE PROVIDED UPON REQUEST]

                                        25

<PAGE>

                                    EXHIBIT 2

                      FORM OF SUBSEQUENT TRANSFER AGREEMENT

        Pursuant to this Subsequent  Transfer  Agreement No. (the  "Agreement"),
dated as of , , between GMAC Mortgage Corporation, as seller (the "Seller"), and
GMACM Mortgage Loan Trust 2000-HE3,  as issuer (the  "Issuer"),  and pursuant to
the loan purchase  agreement  dated as of October 30, 2000 (the  "Mortgage  Loan
Purchase Agreement"),  among the Seller, as a seller and servicer,  Walnut Grove
Home Equity Loan Trust 2000-A, as a seller, Residential Asset Mortgage Products,
Inc., as purchaser (the "Purchaser"), the Issuer and Wells Fargo Bank Minnesota,
N.A., as Indenture Trustee (the "Indenture Trustee"),  the Seller and the Issuer
agree to the sale by the Seller and the  purchase by the Issuer of the  mortgage
loans  listed on the  attached  Schedule  of  Subsequent  HELs (the  "Subsequent
HELs").

        Capitalized  terms used and not  defined  herein  have their  respective
meanings  as set forth in  Appendix A to the  indenture  dated as of October 30,
2000,  between  the  Issuer  and  the  Indenture  Trustee,  which  meanings  are
incorporated by reference herein.  All other capitalized terms used herein shall
have the meanings specified herein.

        Section 1.    Sale of Subsequent HELs.

        (a) The Seller does hereby sell,  transfer,  assign, set over and convey
to the Issuer,  without recourse, all of its right, title and interest in and to
the  Subsequent  HELs,  all  principal  received  and  interest  accruing on the
Subsequent  HELs on and after the Subsequent  Cut-Off Date, all monies due or to
become due  relating to such  Subsequent  HELs and all items with respect to the
Subsequent  HELs to be delivered  pursuant to Section 2.2 of the  Mortgage  Loan
Purchase Agreement;  provided, however, that the Seller reserves and retains all
right,  title and interest in and to principal received and interest accruing on
the  Subsequent  HELs  prior  to  the  Subsequent   Cut-Off  Date.  The  Seller,
contemporaneously  with the delivery of this Agreement,  has delivered or caused
to be delivered to the  Indenture  Trustee each item set forth in Section 2.2 of
the Mortgage Loan Purchase Agreement.

        The  transfer  to the  Issuer  by the  Seller  of  the  Subsequent  HELs
identified on the Mortgage  Loan  Schedule  shall be absolute and is intended by
the  parties  hereto to  constitute  a sale by the  Seller to the  Issuer on the
Subsequent Transfer Date of all the Seller's right, title and interest in and to
the Subsequent  HELs, and other property as and to the extent  described  above,
and the Issuer hereby acknowledges such transfer.  In the event the transactions
set forth herein shall be deemed not to be a sale,  the Seller  hereby grants to
the Issuer as of the Subsequent  Transfer Date a security interest in all of the
Seller's  right,  title and  interest  in, to and  under all  accounts,  chattel
papers, general intangibles,  contract rights,  certificates of deposit, deposit
accounts,  instruments,  documents, letters of credit, money, advices of credit,
investment  property,  goods and other property  consisting of, arising under or
related to the Subsequent  HELs, and such other  property,  to secure all of the
Issuer's obligations  hereunder,  and this Agreement shall constitute a security
agreement  under  applicable law. The Seller agrees to take or cause to be taken
such actions and to execute such  documents,  including  without  limitation the
filing  of all  necessary  UCC-1  financing  statements  filed  in the  State of

                                        2-1

<PAGE>

Delaware and the  Commonwealth  of  Pennsylvania  (which shall be submitted  for
filing as of the Subsequent  Transfer Date),  any  continuation  statements with
respect thereto and any amendments  thereto  required to reflect a change in the
name or corporate  structure of the Seller or the filing of any additional UCC-1
financing statements due to the change in the principal office of the Seller, as
are necessary to perfect and protect the Issuer's  interests in each  Subsequent
HEL and the proceeds thereof.

        (b) The  expenses and costs  relating to the delivery of the  Subsequent
HELs, this Agreement and the Mortgage Loan Purchase  Agreement shall be borne by
the Seller.

     (c) Additional terms of the sale are set forth on Attachment A hereto.

        Section 2.    Representations and Warranties; Conditions Precedent.

        (a) The Seller hereby  affirms the  representations  and  warranties set
forth in Section 3.1 of the Mortgage Loan Purchase  Agreement that relate to the
Seller or the Subsequent HELs as of the date hereof.  The Seller hereby confirms
that each of the  conditions  set forth in Section  2.2(b) of the Mortgage  Loan
Purchase  Agreement are  satisfied as of the date hereof and further  represents
and warrants that each  Subsequent  HEL complies with the  requirements  of this
Agreement and Section 2.2(c) of the Mortgage Loan Purchase Agreement.

        (b) The Seller is  solvent,  is able to pay its debts as they become due
and has  capital  sufficient  to  carry  on its  business  and  its  obligations
hereunder;  it will not be rendered  insolvent by the  execution and delivery of
this  Instrument or by the  performance of its  obligations  hereunder nor is it
aware  of  any  pending  insolvency;  no  petition  of  bankruptcy  (or  similar
insolvency proceeding) has been filed by or against the Seller prior to the date
hereof.

        (c) All terms and  conditions of the Mortgage  Loan  Purchase  Agreement
relating to the Subsequent  HELs are hereby  ratified and  confirmed;  provided,
however,  that in the event of any conflict  the  provisions  of this  Agreement
shall  control over the  conflicting  provisions  of the Mortgage  Loan Purchase
Agreement.

        Section  3.  Recordation  of  Instrument.  To the  extent  permitted  by
applicable law or a memorandum  thereof if permitted under  applicable law, this
Agreement is subject to recordation in all  appropriate  public offices for real
property  records in all of the counties or other  comparable  jurisdictions  in
which  any or all  of the  properties  subject  to  the  related  Mortgages  are
situated,  and in any other  appropriate  public  recording office or elsewhere,
such recordation to be effected by the Servicer at the  Noteholders'  expense on
direction of the Majority  Noteholders,  but only when accompanied by an Opinion
of Counsel to the  effect  that such  recordation  materially  and  beneficially
affects the interests of the Noteholders or is necessary for the  administration
or servicing of the Subsequent HELs.

        Section  4.  GOVERNING  LAW.  THIS  INSTRUMENT  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.

                                        2-2

<PAGE>

     Section 5.  Counterparts.  This Instrument may be executed in counterparts,
each of which, when so executed,  shall be deemed to be an original and together
shall constitute one and the same instrument.

     Section 6.  Successors  and  Assigns.  This  Agreement  shall  inure to the
benefit  of and be binding  upon the Seller and the Issuer and their  respective
successors and assigns.

                        GMAC MORTGAGE CORPORATION,
                           as Seller

                        By:
                            Name:
                            Title:

                        GMACM MORTGAGE LOAN TRUST 2000-HE3, as Issuer

                        By: WILMINGTON TRUST COMPANY,
                               not in its individual capacity but solely as
                               Owner Trustee

                        By:
                            Name:
                            Title:

                                   Attachments

A.      Additional terms of sale.
B.      Schedule of Subsequent HELs.
C.      Seller's Officer's Certificate.
D.      Seller's Officer's Certificate.

                                        2-3

<PAGE>

                       GMACM MORTGAGE LOAN TRUST 2000-HE3

              ATTACHMENT A TO FORM OF SUBSEQUENT TRANSFER AGREEMENT

                               ------------, ----

A.
      1.   Subsequent Cut-Off Date:
      2.   Pricing Date:
      3.   Subsequent Transfer Date:
      4.   Aggregate Principal Balance of the Subsequent HELs as of the
           Subsequent Cut-Off Date:
      5.   Purchase Price:                                   100.00%
B.
As to all Subsequent HELs:
      1.   Longest stated term to maturity:                             months
                                                             ----------
      2.   Minimum Loan Rate:                                           %
                                                             ----------
      3.   Maximum Loan Rate:                                           %
                                                             ----------
      4.   WAC of all Subsequent HELs:                                  %
                                                             ----------
      5.   WAM of all Subsequent HELs:                                  %
                                                             ----------
      6.   Largest Principal Balance:                        $
      7.   Non-owner occupied Mortgaged Properties:                     %
                                                             ----------
      8.   California zip code concentrations:                   % and      %
                                                             ----      ----
      9.   Condominiums:                                                %
                                                             ----------
      10.  Single-family:                                               %
                                                             ----------
      11.  Weighted average term since origination:                    %
                                                             ----------
      12.  Principal balance of Subsequent HELs with respect to which the    $
           Mortgagor is an employee of GMACM or an affiliate of GMACM:
      13.  Number of Subsequent HELs with respect to which the Mortgagor
           is an employee of GMACM or an affiliate of GMACM:

<PAGE>

                                    EXHIBIT 3

                             FORM OF ADDITION NOTICE

DATE:

Wells Fargo Bank Minnesota, N.A.                  Fitch, Inc.
11000 Broken Land Parkway                         One State Street Plaza
Columbia, Maryland 21044                          New York, New York 10004

Standard & Poor's, a division of The              [Wilmington Trust Company
McGraw-Hill Companies, Inc.                       1100 North Market Street
26 Broadway                                       Wilmington, Delaware 19890]
New York, New York 10004-1064

                     Re: GMACM Mortgage Loan Trust 2000-HE3

Ladies and Gentlemen:

     Pursuant to Section 2.2 of the mortgage loan purchase agreement dated as of
October 30, 2000 (the "Purchase Agreement"), among GMAC Mortgage Corporation, as
Seller and  Servicer,  Walnut  Grove Home Equity Loan Trust  2000-A,  as Seller,
Residential  Asset Mortgage  Products,  Inc., as Purchaser,  GMACM Mortgage Loan
Trust  2000-HE3,  as Issuer and Wells Fargo Bank  Minnesota,  N.A., as Indenture
Trustee,  the  Seller has  designated  the  Subsequent  HELs  identified  on the
Mortgage  Loan Schedule  attached  hereto to be sold to the Issuer on _____,___,
with an aggregate  Principal  Balance of  $_____________.  Capitalized terms not
otherwise  defined  herein have the  meaning set forth in the  Appendix A to the
indenture  dated as of October 30,  2000,  between the Issuer and the  Indenture
Trustee.

<PAGE>

        Please  acknowledge  your receipt of this notice by  countersigning  the
enclosed copy in the space  indicated below and returning it to the attention of
the undersigned.

                                Very truly yours,

                                            GMAC MORTGAGE CORPORATION,
                                               as Seller

                                            By:
                                                Name:
                                                Title:

ACKNOWLEDGED AND AGREED:

WELLS FARGO BANK MINNESOTA, N.A.,
    as Indenture Trustee

By:
    Name:
    Title:

<PAGE>Exhibit 4.1.                                                        ANNEX I

                            DEFINED TERMS

       "364-Day Commitment Fee Rate" means, on any date, the number
of Basis Points per annum set forth below based on the Applicable
Rating Level on such date:

Applicable                  Applicable 364-Day Commitment
Rating Level                            Fee Rate

Level I                                    7.0

Level II                                   8.5

Level III                                 10.0

Level IV                                  12.5

Level V                                   15.0

Level VI                                  22.5

Level VII                                 27.5

       "Acquired Debt" means, with respect to any specified Person,
(i) Indebtedness of any other Person existing at the time such other
Person is merged with or into or became a Subsidiary of such
specified Person, including, without limitation, Indebtedness
incurred in connection with, or in contemplation of, such other
Person merging with or into or becoming a Subsidiary of such
specified Person, and (ii) Indebtedness secured by a Lien
encumbering any assets acquired by such specified Person, and any
refinancing of the foregoing indebtedness on similar terms, taking
into account current market conditions.

       "Adjusted Canadian Dollar Eurodollar Rate" means, for any
Canadian Dollar Eurodollar Loan for any Eurodollar Interest Period
therefor, the per annum rate equal to the sum of (a) the Applicable
Margin plus (b) the rate per annum (rounded upwards, if necessary,
to the nearest 1/1000 of 1%) determined by Canadian Agent to be
equal to the quotient obtained by dividing (i) the Canadian Dollar
Eurodollar Rate for such Canadian Dollar Eurodollar Loan for such
Eurodollar Interest Period by (ii) 1 minus the Reserve Requirement
for such Canadian Dollar Eurodollar Loan for such Interest Period.
The Adjusted Canadian Dollar Eurodollar Rate for any Canadian Dollar
Eurodollar Loan shall change whenever the Applicable Margin or the
Reserve Requirement changes.  No Adjusted Canadian Dollar Eurodollar
Rate charged by any Person shall ever exceed the Highest Lawful
Rate.

       "Adjusted US Dollar Eurodollar Rate" means, for any US Dollar
Eurodollar Loan for any Eurodollar Interest Period therefor, the per
annum rate equal to the sum of (a) the Applicable Margin plus (b)
the rate per annum (rounded upwards, if necessary, to the nearest
1/1000 of 1%) determined by Agent to be equal to the quotient
obtained by dividing (i) the US Dollar Eurodollar Rate for such US
Dollar Eurodollar Loan for such Eurodollar Interest Period by (ii) 1
minus the Reserve Requirement for such US Dollar Eurodollar Loan for
such Interest Period.  The Adjusted US Dollar Eurodollar Rate for
any US Dollar Eurodollar Loan shall change whenever the Applicable
Margin or the Reserve Requirement changes.  No Adjusted US Dollar
Eurodollar Rate charged by any Person shall ever exceed the Highest
Lawful Rate.

       "Affiliate" means, as to any Person, each other Person that
directly or indirectly (through one or more intermediaries or
otherwise) controls, is controlled by, or is under common control
with, such Person.  A Person shall be deemed to be "controlled by"
any other Person if such other Person possesses, directly or
indirectly, power

       (a)     to vote 20% or more of the securities (on a fully
diluted basis) having ordinary voting power for the election of
directors or managing general partners; or

       (b)     to direct or cause the direction of the management
and policies of such Person whether by contract or otherwise.

       "Applicable Currency" means (i) when used with respect to any
US Loan or US LC Obligations, US Dollars, and (ii) when used with
respect to any Canadian Prime Rate Loan, any Canadian Dollar
Eurodollar Loan or any Bankers' Acceptance, Canadian Dollars, and
(iii) when used with respect to any Canadian Base Rate Loan or an US
Dollar Eurodollar Loan made under the Canadian Agreement, US Dollars.

       "Applicable Lending Office" means, for each Lender and for
each Type of Loan, the "Lending Office" of such Lender (or of an
Affiliate of such Lender) designated for such Type of Loan on the
signature pages hereof or such other office of such Lender (or an
Affiliate of such Lender) as such Lender may from time to time
specify to US Agent, Canadian Agent, and Borrowers by written notice
in accordance with the terms hereof as the office by which its Loans
of such Type are to be made and maintained.

       "Applicable Margin" means when used in the Canadian Agreement
and when used in the US Agreement on any date, the number of Basis
Points per annum set forth below based on the Applicable Rating
Level on such date:

         Applicable                       Applicable
        Rating Level                        Margin

          Level I                              30.0

          Level II                             35.0

          Level III                            45.0

          Level IV                             60.0

          Level V                              75.0

          Level VI                            100.0

          Level VII                           125.0

In the event that the Canadian Revolving Loans convert into Canadian
Term Loans pursuant to Section 1.7 of the Canadian Agreement, then
as of April 20, 2004, and at all times thereafter the Applicable
Margin as set forth above on such Canadian Term Loans shall increase
by fifteen (15) Basis Points per annum.  Changes in the Applicable
Margin will occur automatically without prior notice as changes in
the Applicable Rating Level occur.  US Agent will give notice
promptly to Borrowers and the Lenders of changes in the Applicable
Margin.

       "Applicable Rating Level" means for any day, the highest
Rating Level (as such term is defined below in this paragraph)
issued by S&P or Moody's (collectively, in this definition called
the "Designated Rating Agencies"), provided that if the Rating Level
issued by one Designated Rating Agency is more than one level higher
than the Rating Level issued by the other Designated Rating Agency,
the "Applicable Rating Level" will be one level above the lowest
Rating Level.  As used in this definition, (i) the term "Rating
Level" means for any day with respect to any of the Designated
Rating Agencies, the rating level described below (or its then
equivalent) applicable on such day, issued by such Designated Rating
Agency, from time to time, with respect to US Borrower's Long-Term
Debt  or if such rating is unavailable, equivalents thereof,
including counterparty ratings, implied ratings and corporate
ratings; (ii) "US Borrower's Long-Term Debt" means senior,
unsecured, non-credit enhanced long-term indebtedness for borrowed
money of US Borrower, and (iii) " " means a rating equal to or more
favorable than and " " means a rating equal to or less favorable
than.

     Rating Level           S&P           Moody's

       Level I                A              A2

       Level II               A-            A3

      Level III              BBB+           Baa1

       Level IV             BBB             Baa2

       Level V               BBB-           Baa3

       Level VI              BB+            Ba1

      Level VII             BB              Ba2

If either of the Designated Rating Agencies shall not have in effect
a rating for US Borrower's Long-Term Debt or if the rating system of
any of the Designated Rating Agencies shall change, or if either of
the Designated Rating Agencies shall cease to be in the business of
rating corporate debt obligations, US Borrower and Required Lenders
shall negotiate in good faith to amend this definition to reflect
such changed rating system or the unavailability of ratings from
such Designated Rating Agency, but until such an agreement shall be
reached, the Applicable Rating Level shall be based only upon the
rating by the remaining Designated Rating Agency.

       "BA Discount Rate" means, in respect of a BA being accepted
by a Lender on any date, (i) for a Lender that is listed in Schedule
I to the Bank Act (Canada), the average bankers' acceptance rate as
quoted on Reuters CDOR page (or such other page as may, from time to
time, replace such page on that service for the purpose of
displaying quotations for bankers' acceptances accepted by leading
Canadian financial institutions) at approximately 10:00 a.m.
(Toronto time) on such drawdown date for bankers' acceptances having
a comparable maturity date as the maturity date of such BA (the
"CDOR Rate"); or, if such rate is not available at or about such
time, the average of the bankers' acceptance rates (expressed to
five decimal places) as quoted to the Agent by the Schedule I BA
Reference Banks as of 10:00 a.m. (Toronto time) on such drawdown
date for bankers' acceptances having a comparable maturity date as
the maturity date of such BA; and (ii) for a Lender that is listed
in Schedule II to the Bank Act (Canada), the rate established by the
Canadian Agent to be the lesser of (A) the CDOR Rate plus 10 Basis
Points; and (B) the average of the bankers' acceptance rates
(expressed to five decimal places) as quoted to the Canadian Agent
by the Schedule II BA Reference Banks as of 10:00 a.m. (Toronto
time) on such drawdown date for bankers' acceptances having a
comparable maturity date as the maturity date of such BA;

       "Bankers' Acceptance" or "BA" means a Canadian Dollar draft
of Canadian Borrower, for a term selected by such Canadian Borrower
of either 30, 60, 90 or 180 days (as reduced or extended by the
Lender, acting reasonably, to allow the maturity thereof to fall on
a Business Day) payable in Canada.

       "Bankruptcy and Insolvency Act (Canada)" means the Bankruptcy
and Insolvency Act, S.C. 1992, c. 27, including the regulations made
and, from time to time, in force under that Act.

       "Basis Point" means one one-hundredth of one percent (0.01%).

       "Borrower" means any of US Borrower and Canadian Borrower.

       "Borrowing" means a borrowing of new Loans of a single Type
pursuant to Section 1.2 or a Continuation or Conversion of existing
Loans into a single Type (and, in the case of Eurodollar Loans, with
the same Interest Period) pursuant to Section 1.3 of the US
Agreement or the Canadian Agreement or the acceptance or purchase of
Bankers' Acceptances issued by Canadian Borrower under the Canadian
Agreement or the Continuation or Conversion of existing Banker's
Acceptances into Canadian Loans of a single Type in the case of
Eurodollar Loans with the same Interest Period pursuant to Section
1.3 of the Canadian Agreement.

       "Borrowing Notice" means a written or telephonic request, or
a written confirmation, made by any Borrower which meets the
requirements of Section 1.2 of the US Agreement or Section 1.2 of
the Canadian Agreement.

       "Business Day" means (a) with respect to the Canadian
Agreement, a day, other than a Saturday or Sunday, on which
commercial banks are open for business with the public in Dallas,
Texas and Toronto, Ontario and (b) with respect to the US Agreement,
a day, other than a Saturday or Sunday, on which commercial banks
are open for business with the public in Dallas, Texas. Any Business
Day in any way relating to Eurodollar Loans (such as the day on
which an Interest Period begins or ends) must also be a day on
which, in the judgment of US Agent or Canadian Agent, as applicable,
significant transactions in dollars are carried out in the interbank
eurocurrency market.

       "Canadian Advances" has the meaning given to such term in
Section 1.1 of the Canadian Agreement.

       "Canadian Agent" means Bank of America Canada, as
administrative agent under the Canadian Agreement, and its
successors and assigns in such capacity.

       "Canadian Agreement" means that certain Credit Agreement
dated the Closing Date among Canadian Borrower, Canadian Agent and
Lenders, as it may be amended, supplemented, restated or otherwise
modified and in effect from time to time.

       "Canadian Base Rate Loan" means a Canadian Loan which bears
interest at the Canadian US Dollar Base Rate.

       "Canadian Borrower" means Celsius Energy.

       "Canadian Dollar" or "C$" means the lawful currency of Canada.

       "Canadian Dollar Eurodollar Loan" means a Canadian Loan that
bears interest at the Adjusted Canadian Dollar Eurodollar Rate.

       "Canadian Dollar Eurodollar Rate" means, for any Canadian
Dollar Eurodollar Loan within a Borrowing and with respect to the
related Interest Period therefor, the rate per annum (rounded
upwards, if necessary, to the nearest 1/1000 of 1%) appearing on the
Dow Jones Market Service (formerly Telerate Access Service) Page
3740 (or any successor page) as the London interbank offered rate
for deposits in Canadian Dollars at approximately 11:00 a.m. (London
time) two Business Days prior to the first day of such Interest
Period for a term comparable to such Interest Period.  If for any
reason such rate is not available, then such offered rate shall be
otherwise independently determined by Canadian Agent from an
alternate, substantially similar independent source available to
Canadian Agent or shall be calculated by Canadian Agent by a
substantially similar methodology as that theretofore used to
determine such offered rate on Dow Jones Market Service, in the
London interbank eurodollar market for a period of time equal or
comparable to the related Interest Period and in an amount equal to
or comparable to the principal amount of the eurodollar portion to
which such Interest Period relates.

       "Canadian Facility Maturity Date" means the date which is
five years and one day after the Conversion Date.

       "Canadian Facility Usage" means, at the time in question, the
US Dollar Exchange Equivalent of the aggregate amount of Canadian
Loans, Canadian LC Obligations, and BA's outstanding at such time.

       "Canadian Guarantor" means US Borrower.

       "Canadian LC Issuer" means Bank of America Canada in its
capacity as the issuer of Letters of Credit under the Canadian
Agreement, and its successors in such capacity.  Canadian Agent may,
with the consent of Canadian Borrower and the Lender in question,
appoint any Canadian Resident Lender hereunder as a Canadian LC
Issuer in place of or in addition to Bank of America Canada.

       "Canadian LC Obligations" means, at the time in question, the
sum of all Matured Canadian LC Obligations plus the maximum amounts
which Canadian LC Issuer might then or thereafter be called upon to
advance under all Letters of Credit then outstanding under the
Canadian Agreement.

       "Canadian LC Sublimit" means C $5,000,000.

       "Canadian Loan Documents" means the Canadian Agreement, the
Canadian Notes, the Letters of Credit issued under the Canadian
Agreement, the LC Applications related thereto, the BA's, the
Guaranty executed by Canadian Guarantor, and all other agreements,
certificates, documents, instruments and writings at any time
delivered in connection herewith or therewith (exclusive of term
sheets and commitment letters).

       "Canadian Loans" means the Canadian Revolving Loans, the
Canadian Term Loans into which such Revolving Loans may be converted
and the Competitive Bid Loans made under the Canadian Agreement.

       "Canadian Maximum Credit Amount" means the Canadian Dollar
Exchange Equivalent of US $58,000,000 on the Closing Date; provided
that the Canadian Maximum Credit Amount may be increased up to US
$70,000,000 pursuant to Section 1.1(b) of the Canadian Agreement.

       "Canadian Notes" means each Lender's "Canadian Note", as
defined in Section 1.1 of the Canadian Agreement, and the
Competitive Bid Notes issued under the Canadian Agreement.

       "Canadian Obligations" means all Liabilities from time to
time owing by Canadian Borrower to any Lender Party under or
pursuant to any of the Canadian Loan Documents, including all
Canadian LC Obligations owing thereunder.  "Canadian Obligation"
means any part of the Canadian Obligations.

       "Canadian Prime Rate" means on any day a fluctuating rate of
interest per annum equal to the higher of (i) the rate of interest
per annum most recently announced by Bank of America Canada as its
reference rate for Canadian Dollar commercial loans made to a Person
in Canada; and (ii) Bank of America Canada's Discount Rate for
Bankers' Acceptances having a maturity of thirty days plus the
Applicable Margin.  No Canadian Prime Rate charged by any Person
shall ever exceed the Highest Lawful Rate

       "Canadian Prime Rate Loan" means a Canadian Loan that bears
interest at the Canadian Prime Rate.

       "Canadian Resident Lender" means each Lender identified as
such on the signature pages to the Canadian Agreement or any
Assignment and Acceptance executed by a new Lender, each being a
Person that is not a non-resident of Canada for the purposes of the
Income Tax Act (Canada).

       "Canadian Revolving Loans" has the meaning given it in
Section 1.1 of the Canadian Agreement.

       "Canadian Revolving Period" means the period from and
including the Closing Date until the Conversion Date (or, if
earlier, the day on which the obligations of Lenders to make
Canadian Loans or the obligations of Canadian LC Issuer to issue
Letters of Credit under the Canadian Agreement have been terminated
or the Canadian Notes first become due and payable in full).

       "Canadian Term Loan" has the meaning given it in Section 1.7
of the Canadian Agreement.

       "Canadian Term Period" means the period from and including
the day immediately following the Conversion Date until and
including the Canadian Facility Maturity Date.

       "Canadian US Dollar Base Rate" means for a day, the rate per
annum equal to the higher of (a) the Federal Funds Rate for such day
plus one-half of one percent (0.5%) and (b) the rate of interest per
annum most recently established by Bank of America Canada as its
reference rate for US Dollar commercial loans made to a Person in
Canada.  Any change in the Canadian US Dollar Base Rate due to a
change in the Bank of America Canada's  reference rate shall be
effective on the effective date of such change.  No Canadian US
Dollar Base Rate charged by any Person shall ever exceed the Highest
Lawful Rate.

       "CBRS" means CBRS Inc., or its successor.

       "Celsius Energy" means Celsius Energy Resources Ltd., a
Canadian corporation organized under the laws of Alberta.

       "Change of Control" means the occurrence of any of the
following events:  (i) any Person (or syndicate or group (a "Group")
of Persons which is deemed a "person" for the purposes of Section
13(d)(3) of the Securities Exchange Act of 1934, as amended)
acquires more than fifty percent (50%) of the outstanding stock of
either Borrower having ordinary voting power (disregarding changes
in voting power based on the occurrence of contingencies) for the
election of directors; (ii) during any period of twelve successive
months a majority of the Persons who were directors of either
Borrower at the beginning of such period cease to be directors of
either Borrower; or (iii) such Person or Group succeeds in having
sufficient of its nominees elected to the board of directors of
either Borrower, such that such nominees, when added to any existing
director or remaining director remaining on the board of directors
after such election who is an Affiliate of such Person or Group,
will constitute a majority of such board of directors.

       "Closing Date" means April 19, 1999.

       "Companies' Creditors Arrangement Act (Canada)" means the
Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36,
including the regulations made and from time to time in force under
that Act.

       "Competitive Bid" means (i) with respect to the US Agreement,
a response from any Lender to an Invitation to Bid, substantially in
the form of Exhibit J to the US Agreement and (ii) with respect to
the Canadian Agreement, a response from any Canadian Resident Lender
to an Invitation to Bid, substantially in the form of Exhibit K to
the Canadian Agreement.

       "Competitive Bid Accept/Reject Letter" means (i) with respect
to the US Agreement, a notice sent by US Borrower to US Agent,
substantially in the form of Exhibit K to the US Agreement,
indicating its acceptance or rejection of Competitive Bids from
various Lenders and (ii) with respect to the Canadian Agreement, a
notice sent by Canadian Borrower to Canadian Agent, substantially in
the form of Exhibit L to the Canadian Agreement, indicating its
acceptance or rejection of Competitive Bids from various Lenders.

       "Competitive Bid Interest Period" means, with respect to any
Competitive Bid Loan, a period from seven days or more as specified
in the Competitive Bid applicable thereto until, in the case of
Competitive Bid Loans made under the US Agreement, the last day of
the US Facility Commitment Period and, in the case of Competitive
Bid Loans made under the Canadian Agreement, the last day of the
Canadian Revolving Period.

       "Competitive Bid Loan" means (i) with respect to the US
Agreement, a loan from a Lender to US Borrower pursuant to the
bidding procedure described in Section 1.7 of the US Agreement and
(ii) with respect to the Canadian Agreement, a loan from a Canadian
Resident Lender to Canadian Borrower pursuant to the bidding
procedure described in Section 1.9 of the Canadian Agreement.

       "Competitive Bid Note" (i) with respect to the US Agreement,
a "Competitive Bid Note" as defined in Section 1.7 of the US
Agreement and (ii) with respect to the Canadian Agreement, a
"Competitive Bid Note" as defined in Section 1.9 of the Canadian
Agreement.

       "Competitive Bid Rate" means, for any Competitive Bid Loan,
the fixed rate at which such Lender is willing to make such
Competitive Bid Loan indicated in its Competitive Bid.  The
Competitive Bid Rate shall in no event, however, exceed the Highest
Lawful Rate.

       "Competitive Bid Request" means (i) with respect to the US
Agreement, a request by US Borrower in the form of Exhibit H to the
US Agreement for Lenders to submit Competitive Bids and (ii) with
respect to the Canadian Agreement, a request by Canadian Borrower in
the form of Exhibit I to the Canadian Agreement for Canadian
Resident Lenders to submit Competitive Bids.

       "Consolidated" refers to the consolidation of any Person, in
accordance with US GAAP, with its properly consolidated
subsidiaries.  References herein to a Person's Consolidated
financial statements, financial position, financial condition,
liabilities, etc. refer to the consolidated financial statements,
financial position, financial condition, liabilities, etc. of such
Person and its properly consolidated subsidiaries.

       "Consolidated Assets" means the total assets of US Borrower
and its Restricted Subsidiaries which would be shown as assets on a
Consolidated balance sheet of US Borrower and its Restricted
Subsidiaries prepared in accordance with US GAAP, after eliminating
all amounts properly attributable to minority interest, if any, in
the stock and surplus of the Restricted Subsidiaries.

       "Consolidated Interest Expense" means, for any period, total
interest expense, whether paid or accrued, including without
limitation all commissions, discounts and other fees and charges
owed with respect to Letters of Credit.

       "Consolidated Net Income" means, for any period, US
Borrower's and its properly Consolidated subsidiaries' gross
revenues for such period, including any cash dividends or
distributions actually received from any other Person during such
period, minus US Borrower's and such subsidiaries' expenses and
other proper charges against income (including taxes on income, to
the extent imposed), determined on a Consolidated basis after
eliminating earnings or losses attributable to outstanding minority
interests and excluding the net earnings of any Person other than
such a subsidiary in which US Borrower or any of such subsidiaries
has an ownership interest.

       "Consolidated Net Worth" means as to US Borrower and its
properly Consolidated subsidiaries at any time, the remainder of all
Consolidated assets of US Borrower and such subsidiaries which would
be shown on their Consolidated balance sheet prepared as of such
time in accordance with GAAP, minus the sum of (a) all amounts which
would be shown on such balance sheet as minority interests in any
such subsidiaries, plus (b) all Consolidated Liabilities of US
Borrower and such subsidiaries which would be shown on such balance
sheet, adjusted by treating as Liabilities rather than equity all
capital stock and other equity securities which US Borrower or any
such subsidiary would be required to purchase, redeem or otherwise
acquire at the election of any holder thereof, upon the passage of
time, or upon the occurrence of any contingency (other than the
voluntary election of US Borrower or any such subsidiary to make
such purchase, redemption or acquisition).

       "Continuation" (i) as used in the US Agreement shall refer to
the continuation pursuant to Section 1.3 thereof of a Eurodollar
Loan as a Eurodollar Loan from one Interest Period to the next
Interest Period and (ii) as used in the Canadian Agreement shall
refer to the continuation pursuant to Section 1.3 thereof of a
Eurodollar Loan as a Eurodollar Loan from one Interest Period to the
next Interest Period or a rollover of a Banker's Acceptance at
maturity.

       "Continuation/Conversion Notice" means (i) with respect to
the US Agreement, a written or telephonic request, or a written
confirmation, made by Borrower which meets the requirements of
Section 1.3 of the US Agreement, and (ii) with respect to the
Canadian Agreement, a written or telephonic request, or a written
confirmation, made by the applicable  Canadian Borrower which meets
the requirements of Section 1.3 of the Canadian Agreement.

       "Conversion" (i) as used in the US Agreement shall refer to a
conversion pursuant to Section 1.3 or Article III of one Type of US
Loan into another Type of US Loan and (ii) as used in the Canadian
Agreement shall refer to a conversion pursuant to Section 1.3 or
Article III of one Type of Canadian Advance into another Type of
Canadian Advance.

       "Conversion Date" means the date which is 364 days after the
Closing Date, or such later day to which the Conversion Date is
extended pursuant to Section 1.6 of the Canadian Agreement.

       "DBRS" means Dominion Bond Rating Service Limited, or its
successor.

       "Debt to Capitalization Ratio" means, at the time of
determination, the ratio of (a) Funded Debt to (b) the sum of the
Funded Debt plus Shareholders' Equity.

       "Default" means any Event of Default and any default, event
or condition which would, with the giving of any requisite notices
and the passage of any requisite periods of time, constitute an
Event of Default.

       "Default Rate" means at the time in question (i) with respect
to any US Base Rate Loan, the rate one percent (1.0%) above the US
Base Rate then in effect, (ii) with respect to any US Dollar
Eurodollar Loan, the rate one percent (1%) above the Adjusted US
Dollar Eurodollar Rate then in effect for such Loan, (iii) with
respect to any Canadian Prime Rate Loan, the rate one percent (1.0%)
above the Canadian Prime Rate then in effect for such Loan, (iv)
with respect to any Canadian Base Rate Loan, the rate one percent
(1%) above the Canadian US Dollar Base Rate then in effect for such
Loan, (v) with respect to any Canadian Dollar Eurodollar Loan, the
rate one percent (1%) above the Adjusted Canadian Dollar Eurodollar
Rate then in effect for such Loan; and (vi) with respect to any
Competitive Bid Loan, the rate one percent (1%) above the
Competitive Bid Rate then in effect for such Loan.  No Default Rate
charged by any Person shall ever exceed the Highest Lawful Rate.

       "Depository Bills and Notes Act (Canada)" means the
Depository Bills and Notes Act (Canada), R.S.C. 1998, c. 13,
including the regulations made and, from time to time, in force
under that Act.

       "Disclosure Schedule" means (i) with respect to the US
Agreement, Schedule 1 thereto, and (ii) with respect to the Canadian
Agreement, Schedule 1 thereto.

       "Discount Proceeds" means, in respect of each Bankers'
Acceptance, funds in an amount which is equal to:

      ((Face Amount) divided by (1 + (Rate x Term)) divided by 365
(where "Face Amount" is the principal amount of the Bankers'
Acceptance being purchased, "Rate" is the BA Discount Rate divided
by 100 and "Term" is the number of days in the term of the Bankers'
Acceptance.)

       "Distribution" means (a) any dividend or other distribution
made by a Restricted Person on or in respect of any stock,
partnership interest, or other equity interest in such Restricted
Person (including any option or warrant to buy such an equity
interest), or (b) any payment made by a Restricted Person to
purchase, redeem, acquire or retire any stock, partnership interest,
or other equity interest in such Restricted Person (including any
such option or warrant).

       "Domestic Lending Office" means, with respect to any Lender,
the office of such Lender specified as its "Domestic Lending Office"
below its name on its signature page to the Canadian Agreement or
the US Agreement, or such other office as such Lender may from time
to time specify to any Borrower and Agent; with respect to LC
Issuer, the office, branch, or agency through which it issues
Letters of Credit; and, with respect to Agent, the office, branch,
or agency through which it administers this Agreement.

       "Eligible Transferee" means a Person which either (a) is a
Lender or an Affiliate of a Lender, or (b) is consented to as an
Eligible Transferee by US Agent or Canadian Agent, as applicable,
and, so long as no Default or Event of Default is continuing, by the
Borrowers, in each case which consent will not be unreasonably
withheld; provided that the no consent shall be required for a
Person to be an "Eligible Transferee" for purposes of Section
10.6(d) of the US Agreement and Section 10.6(d) of the Canadian
Agreement.

       "Environmental Laws" means any and all Laws relating to the
environment or to emissions, discharges, releases or threatened
releases of pollutants, contaminants, chemicals, or industrial,
toxic or hazardous substances or wastes into the environment
including ambient air, surface water, ground water, or land, or
otherwise relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport, or handling of
pollutants, contaminants, chemicals, or industrial, toxic or
hazardous substances or wastes.

       "ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time, together with all rules and
regulations promulgated with respect thereto.

       "ERISA Affiliate" means US Borrower and all members of a
controlled group of corporations and all trades or businesses
(whether or not incorporated) under common control that, together
with US Borrower, are treated as a single employer under Section 414
of the Internal Revenue Code.

       "ERISA Plan" means any employee pension benefit plan subject
to Title IV of ERISA maintained by any ERISA Affiliate with respect
to which any Restricted Person has a fixed or contingent liability.

       "Eurodollar Interest Period" means, with respect to each
particular Eurodollar Loan in a Borrowing, the period specified in
the Borrowing Notice or Continuation/Conversion Notice applicable
thereto, beginning on and including the date specified in such
Borrowing Notice or  Continuation/Conversion Notice (which must be a
Business Day), and ending one, two, three, or six months thereafter,
as the applicable Borrower may elect in such notice; provided that:
(a) any Interest Period which would otherwise end on a day which is
not a Business Day shall be extended to the next succeeding Business
Day unless such Business Day falls in another calendar month, in
which case such Interest Period shall end on the next preceding
Business Day; (b) any Interest Period which begins on the last
Business Day in a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of
such Interest Period) shall end on the last Business Day in a
calendar month; and (c) notwithstanding the foregoing, any Interest
Period which would otherwise end after the last day of the US
Facility Commitment Period or the Canadian Revolving Period shall
end on the last day of the US Facility Commitment Period or the
Canadian Revolving Period (or, if the last day of such period is not
a Business Day, on the next preceding Business Day).

       "Eurodollar Lending Office" means, with respect to any
Lender, the office of such Lender specified as its "Eurodollar
Lending Office" below its name on the signature page hereto (or, if
no such office is specified, its Domestic Lending Office), or such
other office of such Lender as such Lender may from time to time
specify to Borrowers, Canadian Agent, and US Agent.

       "Eurodollar Loan" means any Canadian Dollar Eurodollar Loan
and any US Dollar Eurodollar Loan.

       "Event of Default" means (i) with respect to the US Agreement
the meaning given to such term in Section 8.1 thereof and (ii) with
respect to the Canadian Agreement the meaning given to such term in
Section 8.1 thereof.

       "Exchange Equivalent" in respect of one currency (the
"Original Currency"), being Canadian Dollars or U.S. Dollars, as the
case may be, means, at the date of determination, the amount of
currency expressed in the other such currency necessary to purchase,
based on the Noon Rate on such date, the specified amount of the
Original Currency on such date.

       "Federal Funds Rate" means, for any day, the rate per annum
(rounded upwards, if necessary, to the nearest 1/100th of one
percent) equal to the weighted average of the rates on overnight
Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers on such day, as published
by the Federal Reserve Bank of Dallas, Texas  on the Business Day
next succeeding such day, provided that (i) if the day for which
such rate is to be determined is not a Business Day, the Federal
Funds Rate for such day shall be such rate on such transactions on
the next preceding Business Day as so published on the next
succeeding Business Day, and (ii) if such rate is not so published
for any day, the Federal Funds Rate for such day shall be the
average rate quoted to US Agent on such day on such transactions as
determined by US Agent.

       "Fiscal Quarter" means a three-month period ending on March
31, June 30, September 30 or December 31 of any year.

       "Fiscal Year" means a twelve-month period ending on December
31 of any year.

       "Five-Year Commitment Fee Rate" means, on any date, the
number of Basis Points per annum set forth below based on the
Applicable Rating Level on such date:

         Applicable            Applicable Five Year Commitment
        Rating Level                       Fee Rate

        Level I                               8.5

        Level II                             10.0

        Level III                            12.5

        Level IV                             15.0

        Level V                              17.5

        Level VI                             25.0

        Level VII                            30.0

       "Funded Debt" means the aggregate of the following
Indebtedness of US Borrower and its Subsidiaries, after elimination
of intercompany items and other Consolidation in accordance with
GAAP:  (a) Indebtedness (including the Obligations) for borrowed
money, regardless of maturity, (b) Indebtedness constituting an
obligation to pay the deferred purchase price of property, (c)
Indebtedness evidenced by a bond, debenture, note or similar
instrument, and (d) Indebtedness which is due and payable at the
time in question, with respect to letters of credit or reimbursement
agreements therefor.

       "Governmental Authority" means any domestic or foreign,
national, federal, provincial, state, municipal or other local
government or body and any division, agency, ministry, commission,
board or authority or any quasi-governmental or private body
exercising any statutory, regulatory, expropriation or taxing
authority under the authority of any of the foregoing, and any
domestic, foreign or international judicial, quasi-judicial,
arbitration or administrative court, tribunal, commission, board or
panel acting under the authority of any of the foregoing.

       "Hazardous Materials" means any substances regulated under
any Environmental Law, whether as pollutants, contaminants, or
chemicals, or as industrial, toxic or hazardous substances or
wastes, or otherwise.

       "Hedging Contract" means (a) any agreement providing for
options, swaps, floors, caps, collars, forward sales or forward
purchases involving interest rates, commodities or commodity prices,
equities, currencies, bonds, or indexes based on any of the
foregoing, (b) any option, futures or forward contract traded on an
exchange, and (c) any other derivative agreement or other similar
agreement or arrangement.

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

       "Income Tax Act (Canada)" means the Income Tax Act, S.C.
1970-71-72, c. 63, including the regulations made and, from time to
time, in force under that Act.

       "Indebtedness" of any Person means Liabilities in any of the
following categories:

       (a)     Liabilities for borrowed money,

       (b)     Liabilities constituting an obligation to pay the
deferred purchase price of property or services, other than
customary payment terms taken in the ordinary course of such
Person's business,

       (c)     Liabilities evidenced by a bond, debenture, note or
similar instrument,

       (d)     Liabilities arising under conditional sales or other
title retention agreements or under leases capitalized in accordance
with US GAAP, but excluding customary oil, gas or mineral leases,

       (e)     Liabilities with respect to payments received in
consideration of oil, gas, or other minerals yet to be acquired or
produced at the time of payment (including obligations under
"take-or-pay" contracts to deliver gas in return for payments
already received and the undischarged balance of any production
payment created by such Person or for the creation of which such
Person directly or indirectly received payment);

       (f)     Liabilities under Hedging Contracts,

       (g)     Liabilities with respect to letters of credit or
applications or reimbursement agreements therefor, or

       (h)     Liabilities under direct or indirect guaranties of
Liabilities of any Person or constituting obligations to purchase or
acquire or to otherwise protect or insure a creditor against loss in
respect of Indebtedness of the types described in paragraphs (a)
through (g) above of any Person (such as obligations under working
capital maintenance agreements, agreements to keep-well, or
agreements to purchase debt, assets, goods, securities or services,
but excluding endorsements in the ordinary course of business of
negotiable instruments in the course of collection),

provided, however, that the "Indebtedness" of any Person shall not
include Liabilities that were incurred by such Person on ordinary
trade terms to vendors, suppliers, or other Persons providing goods
and services for use by such Person in the ordinary course of its
business, unless and until such Liabilities are outstanding more
than 90 days past the original invoice or billing date therefor.
Any Indebtedness owed by a partnership shall be deemed Indebtedness
of any partner in such partnership to the extent such partner has
any liability of any kind therefor.

       "Initial Financial Statements" means the audited annual
Consolidated financial statements of US Borrower dated as of
December 31, 1997 and December 31, 1998.

       "Interest Act (Canada)" means the Interest Act, R.S.C. 1985,
c. I-15, including the regulations made and, from time to time, in
force under that Act.

       "Interest Payment Date" means (a) with respect to each US
Base Rate Loan, Canadian US Dollar Base Rate Loan, and Canadian
Prime Rate Loan, the last day of each March, June, September and
December beginning June 30, 1999, and (b) with respect to each
Eurodollar Loan, the last day of the Eurodollar Interest Period that
is applicable thereto and, if such Eurodollar Interest Period is six
months in length, the date specified by Agent which is approximately
three months after such Eurodollar Interest Period begins; provided
that the last day of each calendar month shall also be an Interest
Payment Date for each such Loan so long as any Event of Default
exists under Section 8.1 (a) or (b).

       "Interest Period" means (i) with respect to any Eurodollar
Loan, the related Eurodollar Interest Period and (ii) with respect
to any Competitive Bid Loan, the related Competitive Bid Interest
Period.

       "Internal Revenue Code" means the United States Internal
Revenue Code of 1986, as amended from time to time and any successor
statute or statutes.

       "Investment" means any investment made directly or
indirectly, in any Person, whether by acquisition of shares of
capital stock, indebtedness or other obligations or securities or by
loan, advance, capital contribution or otherwise and whether made in
cash, by the transfer of property, or by any other means.

       "Invitation to Bid" means (i) with respect to the US
Agreement, an invitation by US Agent to each Lender, substantially
in the form of Exhibit I thereto, inviting such Lender to submit
Competitive Bids in response to a Competitive Bid Request under the
US Agreement, and (ii) with respect to the Canadian Agreement, an
invitation by Canadian Agent to each Lender, substantially in the
form of Exhibit J thereto, inviting such Lender to submit
Competitive Bids in response to a Competitive Bid Request under the
Canadian Agreement.

       "Judgment Interest Act (Alberta)" means the Judgment Interest
Act, S.A. 1984 c. J-O.5, including the regulations made and, from
time to time, in force under that Act.

       "Law" means any statute, law, regulation, ordinance, rule,
treaty, judgment, order, decree, permit, concession, franchise,
license, agreement or other governmental restriction of the United
States or Canada or any state, province or political subdivision
thereof or of any foreign country or any department, province or
other political subdivision thereof.

       "LC Application" means any application for a Letter of Credit
hereafter made by any Borrower to US LC Issuer or Canadian LC Issuer.

       "LC Collateral" (i) as used in the US Agreement, has the
meaning given to such term in Section 2.6 of the US Agreement and
(ii) as used in the Canadian Agreement, has the meaning given such
term in Section 2.11 of the Canadian Agreement.

       "Lender Parties" means US Agent, Canadian Agent, US LC
Issuer, Canadian LC Issuer, and all Lenders.

       "Lenders" means each signatory to the US Agreement and the
Canadian Agreement (other than any Borrower), including NationsBank,
N.A. and Bank of America Canada in their capacity as a Lender
hereunder rather than as US Agent or Canadian Agent and US LC Issuer
or Canadian LC Issuer, respectively, and the successors of each such
party as holder of a US Note or a Canadian Note.

       "Lenders Schedule"  means Annex II to the US Agreement and
Annex II to the Canadian Agreement which are the same.

       "Letter of Credit" means any letter of credit issued by US LC
Issuer under the US Agreement or by Canadian LC Issuer under the
Canadian Agreement at the application of any Borrower.

       "Liabilities" means, as to any Person, all indebtedness,
liabilities and obligations of such Person, whether matured or
unmatured, liquidated or unliquidated, primary or secondary, direct
or indirect, absolute, fixed or contingent, and whether or not
required to be considered pursuant to US GAAP.

       "Lien" means, with respect to any property or assets, any
lien, mortgage, security interest, pledge, deposit, production
payment, rights of a vendor under any title retention or conditional
sale agreement or lease substantially equivalent thereto, tax lien,
mechanic's or materialman's lien, or any other charge or encumbrance
for security purposes, whether arising by Law or agreement or
otherwise, but excluding any right of offset.  "Lien" also means any
filed financing statement, any registration of a pledge (such as
with an issuer of uncertificated securities), or any other
arrangement or action which would serve to perfect a Lien described
in the preceding sentence, regardless of whether such financing
statement is filed, such registration is made, or such arrangement
or action is undertaken before or after such Lien exists.

       "Loan Documents" means, collectively, the Canadian Loan
Documents and the US Loan Documents.

       "Loans" means, collectively, the Canadian Loans and the US
Loans.

       "Majority Lenders" means Lenders whose aggregate Percentage
Shares exceed sixty-six and two thirds percent (66 2/3%).

       "Material Adverse Effect" means any event which would
reasonably be expected to have a material and adverse effect upon
(a) US Borrower's Consolidated financial condition, (b) US
Borrower's Consolidated operations, properties or prospects,
considered as a whole, (c) US Borrower's ability to timely pay the
Obligations, or (d) the enforceability of the material terms of any
Loan Documents.

       "Matured Canadian LC Obligations" means all amounts paid by
Canadian LC Issuer on drafts or demands for payment drawn or made
under or purported to be under any Letter of Credit issued under the
Canadian Agreement and all other amounts due and owing to Canadian
LC Issuer under any LC Application for any such Letter of Credit, to
the extent the same have not been repaid to Canadian LC Issuer (with
the proceeds of Loans or otherwise).

       "Matured US LC Obligations" means all amounts paid by US LC
Issuer on drafts or demands for payment drawn or made under or
purported to be under any Letter of Credit issued under the US
Agreement and all other amounts due and owing to US LC Issuer under
any LC Application for any such Letter of Credit, to the extent the
same have not been repaid to US LC Issuer (with the proceeds of
Loans or otherwise).

       "Maximum Canadian Drawing Amount" means at the time in
question the sum of the maximum amounts which Canadian LC Issuer
might then or thereafter be called upon to advance under all Letters
of Credit issued pursuant to the Canadian Agreement which are then
outstanding.

       "Maximum US Drawing Amount" means at the time in question the
sum of the maximum amounts which US LC Issuer might then or
thereafter be called upon to advance under all Letters of Credit
issued pursuant to the US Agreement which are then outstanding.

       "Moody's" means Moody's Investor Service, Inc., or its
successor.

       "Net Proceeds" means with respect to any Bankers' Acceptance,
the Discount Proceeds less the amount equal to the applicable
Stamping Fee Rate multiplied by the face amount of such Bankers'
Acceptance..

       "Non-resident Lender" means any Lender which is not a
Canadian Resident Lender, and shall initially mean each Lender
identified as such on the signature pages to the Canadian Agreement
or thereafter on any Assignment and Acceptance.

       "Noon Rate" means, in relation to the conversion of one
currency into another currency, the rate of exchange for such
conversion as quoted by the Bank of Canada (or, if not so quoted,
the spot rate of exchange quoted for wholesale transactions made by
Canadian Agent at Toronto, Ontario at approximately noon (Toronto
local time)).

       "Notes" mean, collectively, the Canadian Notes and the US Notes.

       "Obligations" means, collectively, the US Obligations and the
Canadian Obligations.

       "Offer of Extension" means (a) with respect to the Canadian
Agreement, a written offer by Canadian Agent, for and on behalf of
Required Lenders, to Canadian Borrower to extend the Canadian
Facility Revolving Period to a date 364 days from acceptance by
Canadian Borrower of such offer, and setting forth, if applicable,
the terms and conditions on which such extension is offered by the
Lenders and as may be accepted by Canadian Borrower, and (b) with
respect to the US Agreement, a written offer by US Agent, for and on
behalf of Required Lenders, to US Borrower to extend the Tranche B
Revolving Period to a date 364 days from acceptance by US Borrower
of such offer, and setting forth, if applicable, the terms and
conditions on which such extension is offered by the Lenders and as
may be accepted by US Borrower.

       "Percentage Share" means

       (a)     under the US Agreement with respect to any Lender (i)
when used in Article I or Article II of the US Agreement, in any
Borrowing Notice thereunder or when no US Loans are outstanding, the
percentage set forth opposite such Lender's name on the Lenders
Schedule as modified by assignments of a Lender's rights and
obligations under the US Agreement made by or to such Lender in
accordance with the terms of the US Agreement or pursuant to Section
1.1(f) of the US Agreement, and (ii) when used otherwise, the
percentage obtained by dividing (x) the sum of the unpaid principal
balance of such Lender's US Loans and such Lender's Percentage Share
of the US  LC Obligations, by (y) the sum of the aggregate unpaid
principal balance of all US Loans at such time plus the aggregate
amount of all US LC Obligations outstanding at such time; and

       (b)     under the Canadian Agreement with respect to any
Lender (i) when used in Article I or Article II of the Canadian
Agreement, in any Borrowing Notice thereunder or when no Canadian
Advances are outstanding, the percentage set forth opposite such
Lender's name on the Lenders Schedule  as modified by assignments of
a Lender's rights and obligations under the Canadian Agreement made
by or to such Lender in accordance with the terms of the Canadian
Agreement or pursuant to Section  1.1(b) of the Canadian Agreement,
and (ii) when used otherwise, the percentage obtained by dividing
(x) the sum of the unpaid principal balance of such Lender's
Canadian Advances and such Lender's Percentage Share of the Canadian
 LC Obligations, by (y) the sum of the aggregate unpaid principal
balance of all Canadian Advances at such time plus the aggregate
amount of all Canadian LC Obligations outstanding at such time.

       "Permitted Liens" means:

       (a)     operators' liens under customary operating
agreements, statutory Liens for taxes, statutory mechanics' and
materialmen's Liens, and other similar statutory Liens, provided
such Liens secure only Liabilities which are not delinquent or which
are being contested as provided in Section 6.7 of the US Agreement
or Section 6.7 of the Canadian Agreement;

       (b)     Liens on any oil and gas properties which neither
have developed reserves (producing or non-producing) properly
attributable thereto nor are otherwise held under lease by
production of other reserves;

       (c)     Liens on the Restricted Persons' office facilities;

       (d)     Liens on property securing non-recourse debt
permitted under Section 7.1(f) of the US Agreement and Section
7.1(f) of the Canadian Agreement which is acquired with proceeds or
developed with proceeds of the non-recourse debt; and

       (e)     Liens to secure the Obligations

provided that nothing in this definition shall in and of itself
constitute or be deemed to constitute an agreement or acknowledgment
by the US Agent or the Canadian Agent or any Lender that the
Indebtedness subject to or secured by any such Permitted Lien ranks
(apart from the effect of any Lien included in or inherent in any
such Permitted Liens) in priority to the Obligations.

       "Person" means an individual, corporation, partnership,
limited liability company, association, joint stock company, trust
or trustee thereof, estate or executor thereof, unincorporated
organization or joint venture, Tribunal, or any other legally
recognizable entity.

       "Rating Agency" means any of S & P or Moody's.

       "Regulation D" means Regulation D of the Board of Governors
of the Federal Reserve System as from time to time in effect.

       "Request for an Offer of Extension" means (a) with respect to
the Canadian Agreement, a written request made by Canadian Borrower
to the Lenders to have Required Lenders issue an offer to Canadian
Borrower extending the Canadian Revolving Period for a further 364
days, and (b) with respect to the US Agreement, a written request
made by US Borrower to the Lenders to have Required Lenders issue an
offer to US Borrower extending the Tranche B Revolving Period for a
further 364 days.

       "Required Lenders" means Lenders whose aggregate Percentage
Shares equal or exceed fifty percent (50%).

        "Reserve Requirement" means, at any time, the maximum rate
at which reserves (including any marginal, special, supplemental, or
emergency reserves) are required to be maintained under regulations
issued from time to time by the Board of Governors of the Federal
Reserve System of the United States of America (or any successor) by
member banks of such  Federal Reserve System against "Eurocurrency
liabilities" (as such term is used in Regulation D).  Without
limiting the effect of the foregoing, the Reserve Requirement shall
reflect any other reserves required to be maintained by such member
banks with respect to (a) any category of liabilities which includes
deposits by reference to which the Adjusted US Dollar Eurodollar
Rate or the Adjusted Canadian Dollar Eurodollar Rate is to be
determined, or (b) any category of extensions of credit or other
assets which include US Dollar Eurodollar Loans or Canadian Dollar
Eurodollar Loans.

       "Restricted Person" means any of US Borrower and each
Restricted Subsidiary.

       "Restricted Subsidiary" means Canadian Borrower and any other
Subsidiary of US Borrower that is not an Unrestricted Subsidiary.

       "S & P" means Standard & Poor's Ratings Services (a division
of McGraw Hill Companies, Inc.), or its successor.

       "Schedule I BA Reference Banks" means the Lenders listed in
Schedule I to the Bank Act (Canada) as are, at such time, designated
by Canadian Agent, with the prior consent of Canadian Borrower
(acting reasonably), as the Schedule I BA reference Banks.

       "Schedule II BA Reference Banks" means the Lenders listed in
Schedule II to the Bank Act (Canada) as are, at such time,
designated by Canadian Agent, with the prior consent of  Canadian
Borrower (acting reasonably), as the Schedule II BA Reference Banks.

        "Shareholders' Equity" means the remainder of (i) US
Borrower's Consolidated assets minus (ii) the sum of (x) US
Borrower's Consolidated liabilities plus (y) all treasury stock of
US Borrower and its Subsidiaries.

       "Stamping Fee Rate" means with respect to any Bankers'
Acceptance accepted by any Canadian Resident Lender at any time, the
Applicable Margin then in effect; provided that if an Event of
Default has occurred and is continuing, the Stamping Fee Rate shall
be increased by one hundred (100) Basis Points.

       "Subsidiary" means, with respect to any Person, any
corporation, association, partnership, limited liability company,
joint venture, or other business or corporate entity, enterprise or
organization which is directly or indirectly (through one or more
intermediaries) controlled by or owned fifty percent or more by such
Person, provided that (a) associations, joint ventures or other
relationships (i) which are established pursuant to a standard form
operating agreement or similar agreement or which are partnerships
for purposes of federal income taxation only, (ii) which are not
corporations or partnerships (or subject to the Uniform Partnership
Act) under applicable state Law, and (iii) whose businesses are
limited to the exploration, development and operation of oil, gas or
mineral properties, transportation and related facilities and
interests owned directly by the parties in such associations, joint
ventures or relationships, shall not be deemed to be "Subsidiaries"
of such Person and (b) associations, joint ventures or other
relationships (i) which are not corporations or partnerships under
applicable provincial Law, and (ii) whose businesses are limited to
the exploration, development and operation of oil, gas or mineral
properties, transportation and related facilities and interests
owned directly by the parties in such associations, joint ventures
or relationships, shall not be deemed to be "Subsidiaries" of such
Person.

       "Termination Event" means (a) the occurrence with respect to
any ERISA Plan of (i) a reportable event described in Sections
4043(b)(5) or (6) of ERISA or (ii) any other reportable event
described in Section 4043(b) of ERISA other than a reportable event
not subject to the provision for 30-day notice to the Pension
Benefit Guaranty Corporation pursuant to a waiver by such
corporation under Section 4043(a) of ERISA, or (b) the withdrawal of
any ERISA Affiliate from an ERISA Plan during a plan year in which
it was a "substantial employer" as defined in Section 4001(a)(2) of
ERISA, or (c) the filing of a notice of intent to terminate any
ERISA Plan or the treatment of any ERISA Plan amendment as a
termination under Section 4041 of ERISA, or (d) the institution of
proceedings to terminate any ERISA Plan by the Pension Benefit
Guaranty Corporation under Section 4042 of ERISA, or (e) any other
event or condition which might constitute grounds under Section 4042
of ERISA for the termination of, or the appointment of a trustee to
administer, any ERISA Plan.

       "Total Capitalization" means the sum (without duplication) of
(i) the Consolidated Total Funded Debt of US Borrower plus (ii) the
Consolidated Shareholder's Equity of US Borrower.

       "Total Funded Debt" means Liabilities referred to in clauses
(a), (b), (c), (d), and (e)  of the definition of "Indebtedness".

       "Tranche A Facility Usage" means, at the time in question,
the aggregate amount of Tranche A Loans and existing US LC
Obligations outstanding at such time under the US Agreement.

       "Tranche A Loan" has the meaning given it in Section 1.1(a)
of the US Agreement.

       "Tranche A Maximum Credit Amount" means $150,000,000;
provided that the Tranche A Maximum Credit Amount may be increased
up to $180,000,000 pursuant to Section 1.1(f) of the US Agreement.

       "Tranche A Note" has the meaning given it in Section 1.1(a)
of the US Agreement.

       "Tranche B Conversion Date" means the date which is 364 days
after the Closing Date, or such later day to which the Tranche B
Conversion Date is extended pursuant to Section 1.1 of the US
Agreement.

       "Tranche B Facility Usage" means, at the time in question,
the aggregate amount of Tranche B Loans outstanding at such time
under the US Agreement.

       "Tranche B Loan" has the meaning given it in Section 1.1(b)
of the US Agreement.
       "Tranche B Maturity Date" means the date which is two (2)
years after the Tranche B Conversion Date.

       "Tranche B Maximum Credit Amount" means $42,000,000; provided
that the Tranche B Maximum Credit Amount may be increased up to
$50,000,000 pursuant to Section 1.1(f) of the US Agreement.

       "Tranche B Note" has the meaning given it in Section 1.1(b)
of the US Agreement.

       "Tranche B Revolving Period" means the period from the
Closing Date until the Tranche B Conversion Date.

       "Tribunal" means any government, any arbitration panel, any
court or any governmental department, commission, board, bureau,
agency or instrumentality of the United States of America or Canada
or any state, province, commonwealth, nation, territory, possession,
county, parish, town, township, village or municipality, whether now
or hereafter constituted or existing.

       "Type" means (i) with respect to any US Loans, the
characterization of such US Loans as either US Base Rate Loans or US
Dollar Eurodollar Loans and (ii) with respect to any Canadian
Advances, the characterization of such Canadian Advances as Canadian
Base Rate Loans, Canadian Prime Rate Loans, US Dollar Eurodollar
Loans, Canadian Dollar Eurodollar Loans or Bankers' Acceptances.

       "Unrestricted Subsidiary" means any corporation, association,
partnership, limited liability company, joint venture, or other
business or corporate entity, enterprise or organization  in which
US Borrower does not presently own an interest (directly or
indirectly) which hereafterbecomes a Subsidiary of US Borrower and
which, within 90 days thereafter, is designated as an Unrestricted
Subsidiary by USBorrower to US Agent, provided that US Borrower may
not designate asan Unrestricted Subsidiary any Subsidiary in which it
has made anInvestment of more than US $25,000,000 (directly or indirectly)
by any means other than newly issued stock or treasury stock of US
Borrower, which may be used to make an Investment in Unrestricted
Subsidiaries without limit and provided further that in the event
the book value of the assets of any Unrestricted Subsidiary at any
time exceeds US $25,000,000, such Subsidiary shall cease to be an
Unrestricted Subsidiary and shall automatically become a Restricted
Person.

       "Utilization Fee Rate" means, on any date, the number of
Basis Points per annum set forth below based on the Applicable
Rating Level on such date:

Applicable                        Applicable Utilization
Rating Level                                    Fee Rate

Level I                                             10.0

Level II                              10.0

        Level III                     15.0

        Level IV                      15.0

         Level V                      20.0

        Level VI                      20.0

        Level VII                     20.0

       "US Account" means an account established by Canadian Agent
in New York into which funds to be advanced to Canadian Borrower by
Lenders in US Dollars and funds to be paid by Canadian Borrower to
Lenders in US Dollars will be deposited.

       "US Agent" means NationsBank, N.A., as administrative agent,
under the US Agreement and its successors and assigns in such
capacity.

       "US Agreement" means that certain Credit Agreement of even
date herewith among US Borrower, Agent and the Lenders, as it may be
amended, supplemented, restated or otherwise modified and in effect
from time to time.

       "US Base Rate" means, for any day, the rate per annum equal
to the higher of (a) the Federal Funds Rate for such day plus
one-half of one percent (0.5%) and (b) the US Reference Rate for
such day.  Any change in the US Base Rate due to a change in the US
Reference Rate or the Federal Funds Rate shall be effective on the
effective date of such change in the US Reference Rate or Federal
Funds Rate.  No US Base Rate charged by any Person shall ever exceed
the Highest Lawful Rate.

       "US Base Rate Loan" means a US Loan made in US Dollars which
bears interest at the US Base Rate.

       "US Borrower" means Questar Market Resources, Inc., a Utah
corporation.

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

       "US Dollar Equivalent" means, with respect to an amount
denominated in Canadian Dollars, the amount of US Dollars required
to purchase the relevant stated amount of Canadian Dollars on the
date of determination.

       "US Dollar Eurodollar Loan" means a US Loan or a Canadian
Loan, in each case, which bears interest at the Adjusted US Dollar
Eurodollar Rate.

       "US Dollar Eurodollar Rate" means, for any US Dollar
Eurodollar Loan within a Borrowing and with respect to the related
Interest Period therefor, the rate per annum (rounded upwards, if
necessary, to the nearest 1/1000 of 1%) appearing on the Dow Jones
Market Service (formerly Telerate Access Service) Page 3750 (or any
successor page) as the London interbank offered rate for deposits in
US Dollars at approximately 11:00 a.m. (London time) two Business
Days prior to the first day of such Interest Period for a term
comparable to such Interest Period.  If for any reason such rate is
not available, the term "US Dollar Eurodollar Rate" shall mean, for
any US Dollar Eurodollar Loan within a Borrowing and with respect to
the related Interest Period therefor, the rate per annum (rounded
upwards, if necessary, to the nearest 1/1000 of 1%) appearing on
Reuters Screen LIBO Page as the London interbank offered rate for
deposits of US Dollars at approximately 11:00 a.m. (London time) two
Business Days prior to the first day of such Interest Period for a
term comparable to such Interest Period; provided, however, if more
than one rate is specified on Reuters Screen LIBO Page, the
applicable rate shall be the arithmetic mean of all such rates
(rounded upwards, if necessary, to the nearest 1/1000 of 1%).

       "US Facility Commitment Period" means the period from and
including the Closing Date until the US Facility Maturity Date (or,
if earlier, the day on which the obligations of Lenders to make US
Loans hereunder or the obligations of US LC Issuer to issue Letters
of Credit hereunder have been terminated or the US Notes first
become due and payable in full).

       "US Facility Maturity Date" means April 19, 2004.

       "US Facility Usage" means, at the time in question, the
aggregate amount of US Loans and existing US LC Obligations
outstanding at such time under the US Agreement.

       "US GAAP" means those generally accepted accounting
principles and practices which are recognized as such from time to
time by the Financial Accounting Standards Board (or any generally
recognized successor) and which, in the case of US Borrower and its
Consolidated Subsidiaries, are applied for all periods after the
Closing Date in a manner consistent with the manner in which such
principles and practices were applied to the Initial Financial
Statements.

       "US LC Issuer" means NationsBank, N.A. in its capacity as the
issuer of Letters of Credit under the US Agreement, and its
successors in such capacity.

       "US LC Obligations" means, at the time in question, with
respect to the US Agreement, the sum of all Matured US LC
Obligations plus the maximum amounts which US LC Issuer might then
or thereafter be called upon to advance under all Letters of Credit
then outstanding.

       "US LC Sublimit" means US $8,000,000.

       "US Loans" means the Tranche A Loans, the Tranche B Loans and
Competitive Bid Loans made under the US Agreement.

       "US Loan Documents" means the US Agreement, the US Notes
issued under the US Agreement, the Letters of Credit issued under
the US Agreement, the LC Applications related thereto, and all other
agreements, certificates, documents, instruments and writings at any
time delivered in connection herewith or therewith (exclusive of
term sheets and commitment letters).

       "US Maximum Credit Amount" means the amount of US
$192,000,000; provided that the US Maximum Credit Amount may be
increased up to US $230,000,000 pursuant to Section 1.1(f) of the US
Agreement.

       "US Notes" means the Tranche A Notes, the Tranche B Notes and
the Competitive Bid Notes issued under the US Agreement.

       "US Obligations" means all Liabilities from time to time
owing by any Restricted Person to any Lender Party under or pursuant
to any of the US Loan Documents, including all US LC Obligations
owing thereunder.  "US Obligation" means any part of the US
Obligations.

       "US Reference Rate" means the per annum rate of interest
established from time to time by NationsBank, N.A. as its prime
rate, which rate may not be the lowest rate of interest charged by
NationsBank, N.A. to its customers.

       "Withholding Tax" has the meaning given it in Section 3.2(d)
of the Canadian Agreement.

                                             US Schedules and Exhibits

                                                            SCHEDULE 1

                              DISCLOSURE SCHEDULE

                                                           EXHIBIT A-1

                               PROMISSORY NOTE

US$                              _______________     ___________, 1999

       FOR VALUE RECEIVED, the undersigned, Questar Market
Resources, Inc., a Utah corporation (herein called "Borrower"),
hereby promises to pay to the order of

                             (herein called "Lender"), the principal
sum of
         Dollars (US$                            ), or, if greater
or less, the aggregate unpaid principal amount of the Tranche A
Loans made under this Note by Lender to Borrower pursuant to the
terms of the Credit Agreement (as hereinafter defined), together
with interest on the unpaid principal balance thereof as hereinafter
set forth, both principal and interest payable as herein provided in
lawful money of the United States of America at the offices of US
Agent under the Credit Agreement, 901 Main Street, Dallas, Texas or
at such other place within Dallas County, Texas, as from time to
time may be designated by the holder of this Note.

       This Note (a) is issued and delivered under that certain US
Credit Agreement of even date herewith among Borrower, NationsBank,
N.A., individually and as administrative agent ("US Agent"), and the
lenders (including Lender) referred to therein (herein, as from time
to time supplemented, amended or restated, called the "Credit
Agreement"), and is a "Tranche A Note" as defined therein and (b) is
subject to the terms and provisions of the Credit Agreement, which
contains provisions for payments and prepayments hereunder and
acceleration of the maturity hereof upon the happening of certain
stated events.  Payments on this Note shall be made and applied as
provided herein and in the Credit Agreement.  Reference is hereby
made to the Credit Agreement for a description of certain rights,
limitations of rights, obligations and duties of the parties hereto
and for the meanings assigned to terms used and not defined herein.

       The principal amount of this Note, together with all interest
accrued hereon, shall be due and payable in full on the US Facility
Maturity Date.

       Tranche A Loans that are US Base Rate Loans (exclusive of any
past due principal or interest) from time to time outstanding shall
bear interest on each day outstanding at the US Base Rate in effect
on such day; provided that if an Event of Default has occurred and
is continuing, US Base Rate Loans shall bear interest on each day
outstanding at the applicable Default Rate in effect on such day.
On each Interest Payment Date Borrower shall pay to the holder
hereof all unpaid interest which has accrued on the US Base Rate
Loans to but not including such Interest Payment Date.  Each Tranche
A Loan that is a US Dollar Eurodollar Loan (exclusive of any past
due principal or interest) shall bear interest on each day during
the related Interest Period at the related Adjusted US Dollar
Eurodollar Rate in effect on such day; provided that if an Event of
Default has occurred and is continuing, such US Dollar Eurodollar
Loan shall bear interest on each day outstanding at the applicable
Default Rate in effect on such day.  On each Interest Payment Date
relating to such US Dollar Eurodollar Loan, Borrower shall pay to
the holder hereof all unpaid interest which has accrued on such US
Dollar Eurodollar Loan to but not including such Interest Payment Date.

       All past due principal of and past due interest on the Loans
shall bear interest on each day outstanding at the applicable
Default Rate in effect on such day, and such interest shall be due
and payable daily as it accrues.  Notwithstanding the foregoing
provisions of this paragraph: (a) this Note shall never bear
interest in excess of the Highest Lawful Rate, and (b) if at any
time the rate at which interest is payable on this Note is limited
by the Highest Lawful Rate (by the foregoing subsection (a) or by
reference to the Highest Lawful Rate in the definitions of US Base
Rate, Adjusted US Dollar Eurodollar Rate, and Default Rate), this
Note shall bear interest at the Highest Lawful Rate and shall
continue to bear interest at the Highest Lawful Rate until such time
as the total amount of interest accrued hereon equals (but does not
exceed) the total amount of interest which would have accrued hereon
had there been no Highest Lawful Rate applicable hereto.

       Notwithstanding the foregoing paragraph and all other
provisions of this Note, in no event shall the interest payable
hereon, whether before or after maturity, exceed the maximum amount
of interest which, under applicable Law, may be charged on this
Note, and this Note is expressly made subject to the provisions of
the Credit Agreement which more fully set out the limitations on how
interest accrues hereon.  The term "applicable Law" as used in this
Note shall mean the laws of the State of Utah or the laws of the
United States, whichever laws allow the greater interest, as such
laws now exist or may be changed or amended or come into effect in
the future.

       If this Note is placed in the hands of an attorney for
collection after default, or if all or any part of the indebtedness
represented hereby is proved, established or collected in any court
or in any bankruptcy, receivership, debtor relief, probate or other
court proceedings, Borrower and all endorsers, sureties and
guarantors of this Note jointly and severally agree to pay
reasonable attorneys' fees and collection costs to the holder hereof
in addition to the principal and interest payable hereunder.

       Borrower and all endorsers, sureties and guarantors of this
Note hereby severally waive demand, presentment, notice of demand
and of dishonor and nonpayment of this Note, protest, notice of
protest, notice of intention to accelerate the maturity of this
Note, declaration or notice of acceleration of the maturity of this
Note, diligence in collecting, the bringing of any suit against any
party and any notice of or defense on account of any extensions,
renewals, partial payments or changes in any manner of or in this
Note or in any of its terms, provisions and covenants, or any
releases or substitutions of any security, or any delay, indulgence
or other act of any trustee or any holder hereof, whether before or
after maturity.

       THIS NOTE AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO
SHALL BE GOVERNED BY THE LAWS OF THE STATE OF UTAH (WITHOUT REGARD
TO PRINCIPLES OF CONFLICTS OF LAW), EXCEPT TO THE EXTENT THE SAME
ARE GOVERNED BY APPLICABLE FEDERAL LAW.

                                     QUESTAR MARKET RESOURCES, INC.

                                     By:
                                      Name:
                                      Title:

                                                           EXHIBIT A-2

                               PROMISSORY NOTE

US$                              _______________     ___________, 1999

       FOR VALUE RECEIVED, the undersigned, Questar Market
Resources, Inc., a Utah corporation (herein called "Borrower"),
hereby promises to pay to the order of

                             (herein called "Lender"), the principal
sum of
         Dollars (US$                            ), or, if greater
or less, the aggregate unpaid principal amount of the Tranche B
Loans made under this Note by Lender to Borrower pursuant to the
terms of the Credit Agreement (as hereinafter defined), together
with interest on the unpaid principal balance thereof as hereinafter
set forth, both principal and interest payable as herein provided in
lawful money of the United States of America at the offices of US
Agent under the Credit Agreement, 901 Main Street, Dallas, Texas or
at such other place within Dallas County, Texas, as from time to
time may be designated by the holder of this Note.

       This Note (a) is issued and delivered under that certain US
Credit Agreement of even date herewith among Borrower, NationsBank,
N.A., individually and as administrative agent ("US Agent"), and the
lenders (including Lender) referred to therein (herein, as from time
to time supplemented, amended or restated, called the "Credit
Agreement"), and is a "Tranche B Note" as defined therein and (b) is
subject to the terms and provisions of the Credit Agreement, which
contains provisions for payments and prepayments hereunder and
acceleration of the maturity hereof upon the happening of certain
stated events.  Payments on this Note shall be made and applied as
provided herein and in the Credit Agreement.  Reference is hereby
made to the Credit Agreement for a description of certain rights,
limitations of rights, obligations and duties of the parties hereto
and for the meanings assigned to terms used and not defined herein.

       The principal amount of this Note, together with all interest
accrued hereon, shall be due and payable in full on the Tranche B
Maturity Date.

       Tranche B Loans that are US Base Rate Loans (exclusive of any
past due principal or interest) from time to time outstanding shall
bear interest on each day outstanding at the US Base Rate in effect
on such day; provided that if an Event of Default has occurred and
is continuing, US Base Rate Loans shall bear interest on each day
outstanding at the applicable Default Rate in effect on such day.
On each Interest Payment Date Borrower shall pay to the holder
hereof all unpaid interest which has accrued on the US Base Rate
Loans to but not including such Interest Payment Date.  Each Tranche
B Loan that is a US Dollar Eurodollar Loan (exclusive of any past
due principal or interest) shall bear interest on each day during
the related Interest Period at the related Adjusted US Dollar
Eurodollar Rate in effect on such day; provided that if an Event of
Default has occurred and is continuing, such US Dollar Eurodollar
Loan shall bear interest on each day outstanding at the applicable
Default Rate in effect on such day.  On each Interest Payment Date
relating to such US Dollar Eurodollar Loan, Borrower shall pay to
the holder hereof all unpaid interest which has accrued on such US
Dollar Eurodollar Loan to but not including such Interest Payment Date.

       All past due principal of and past due interest on the Loans
shall bear interest on each day outstanding at the applicable
Default Rate in effect on such day, and such interest shall be due
and payable daily as it accrues.  Notwithstanding the foregoing
provisions of this paragraph: (a) this Note shall never bear
interest in excess of the Highest Lawful Rate, and (b) if at any
time the rate at which interest is payable on this Note is limited
by the Highest Lawful Rate (by the foregoing subsection (a) or by
reference to the Highest Lawful Rate in the definitions of US Base
Rate, Adjusted US Dollar Eurodollar Rate, and Default Rate), this
Note shall bear interest at the Highest Lawful Rate and shall
continue to bear interest at the Highest Lawful Rate until such time
as the total amount of interest accrued hereon equals (but does not
exceed) the total amount of interest which would have accrued hereon
had there been no Highest Lawful Rate applicable hereto.

       Notwithstanding the foregoing paragraph and all other
provisions of this Note, in no event shall the interest payable
hereon, whether before or after maturity, exceed the maximum amount
of interest which, under applicable Law, may be charged on this
Note, and this Note is expressly made subject to the provisions of
the Credit Agreement which more fully set out the limitations on how
interest accrues hereon.  The term "applicable Law" as used in this
Note shall mean the laws of the State of Utah or the laws of the
United States, whichever laws allow the greater interest, as such
laws now exist or may be changed or amended or come into effect in
the future.

       If this Note is placed in the hands of an attorney for
collection after default, or if all or any part of the indebtedness
represented hereby is proved, established or collected in any court
or in any bankruptcy, receivership, debtor relief, probate or other
court proceedings, Borrower and all endorsers, sureties and
guarantors of this Note jointly and severally agree to pay
reasonable attorneys' fees and collection costs to the holder hereof
in addition to the principal and interest payable hereunder.

       Borrower and all endorsers, sureties and guarantors of this
Note hereby severally waive demand, presentment, notice of demand
and of dishonor and nonpayment of this Note, protest, notice of
protest, notice of intention to accelerate the maturity of this
Note, declaration or notice of acceleration of the maturity of this
Note, diligence in collecting, the bringing of any suit against any
party and any notice of or defense on account of any extensions,
renewals, partial payments or changes in any manner of or in this
Note or in any of its terms, provisions and covenants, or any
releases or substitutions of any security, or any delay, indulgence
or other act of any trustee or any holder hereof, whether before or
after maturity.

       THIS NOTE AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO
SHALL BE GOVERNED BY THE LAWS OF THE STATE OF UTAH (WITHOUT REGARD
TO PRINCIPLES OF CONFLICTS OF LAW), EXCEPT TO THE EXTENT THE SAME
ARE GOVERNED BY APPLICABLE FEDERAL LAW.

                              QUESTAR MARKET RESOURCES, INC.

                              By:
                                     Name:
                                     Title:

                                                             EXHIBIT B

                           BORROWING NOTICE

       Reference is made to that certain US Credit Agreement dated
as of April 19, 1999 (as from time to time amended, the
"Agreement"), by and among Questar Market Resources, Inc., a Utah
corporation ("US Borrower"), NationsBank, N.A., as individually and
as administrative agent ("US Agent"), and certain financial
institutions ("Lenders").  Terms which are defined in the Agreement
are used herein with the meanings given them in the Agreement.
Pursuant to the terms of the Agreement, US Borrower hereby requests
Lenders to make [Tranche A/Tranche B] Loans to US Borrower as follows:

       Aggregate amount of US Loans:          US $ ___________________

       Type of US Loans in Borrowing:              ___________________

        [US Base Rate Loans or US Dollar Eurodollar Loans]

       Date on which US Loans are to be made:      ___________________

       Length of Interest Period for Eurodollar Loans____________ months
       [1, 2, 3 or 6 months]

       To induce Lenders to make such Loans, US Borrower hereby
represents, warrants, acknowledges, and agrees to and with US Agent
and each Lender that:

        (a)    The officer of US Borrower or such other Person duly
       authorized by the President of US Borrower signing this
       instrument is the duly elected, qualified and acting officer
       of US Borrower or such other Person duly authorized by the
       President of US Borrower as indicated below such officer's
       signature hereto having all necessary authority to act for US
       Borrower in making the request herein contained.

        (b)    The representations and warranties of US Borrower set
       forth in the Agreement and the other US Loan Documents are
       true and correct on and as of the date hereof (except to the
       extent that the facts on which such representations and
       warranties are based have been changed by the extension of
       credit under the Agreement), with the same effect as though
       such representations and warranties had been made on and as
       of the date hereof.

        (c)    There does not exist on the date hereof any condition
       or event which constitutes a Default which has not been
       waived in writing as provided in Section 10.1(a) of the
       Agreement; nor will any such Default exist upon US Borrower's
       receipt and application of the Loans requested hereby.  US
       Borrower will use the Loans hereby requested in compliance
       with Section 1.4 of the Agreement.

        (d)    Except to the extent waived in writing as provided in
       Section 10.1(a) of the Agreement, US Borrower has performed
       and complied with all agreements and conditions in the
       Agreement required to be performed or complied with by US
       Borrower on or prior to the date hereof, and each of the
       conditions precedent to US Loans contained in the Agreement
       remains satisfied.

        (e)    The US Facility Usage, after the making of the Loans
       requested hereby, will not be in excess of the US Maximum
       Credit Amount on the date requested for the making of such
       Loans.  [The Tranche A Facility Usage, after the making of
       the Loans requested hereby, will not be in excess of the
       Tranche A Maximum Credit Amount on the date requested for the
       making of such Loans./ The Tranche B Loans, after the making
       of such Loans, will not be in excess of the  Tranche B
       Maximum Credit Amount.]

        (f)    The US Loan Documents have not been modified, amended
       or supplemented by any unwritten representations or promises,
       by any course of dealing, or by any other means not provided
       for in Section 10.1(a) of the Agreement.  The Agreement and
       the other US Loan Documents are hereby ratified, approved,
       and confirmed in all respects.

       The officer of US Borrower or such other Person duly
authorized by the President of US Borrower signing this instrument
hereby certifies that, to the best of his knowledge after due
inquiry, the above representations, warranties, acknowledgments, and
agreements of US Borrower are true, correct and complete.

       IN WITNESS WHEREOF, this instrument is executed as of
____________, 1999.

                              QUESTAR MARKET RESOURCES, INC.

                              By:
                              Name:
                              Title:

                                                             EXHIBIT C

                    CONTINUATION/CONVERSION NOTICE

       Reference is made to that certain US Credit Agreement dated
as of April 19, 1999 (as from time to time amended, the
"Agreement"), by and among Questar Market Resources, Inc., a Utah
corporation ("US Borrower"), NationsBank, N.A., individually and as
administrative agent ("US Agent"), and certain financial
institutions ("Lenders").  Terms which are defined in the Agreement
and which are used but not defined herein are used herein with the
meanings given them in the Agreement.

     US Borrower hereby requests a conversion or continuation of
existing [Tranche A/Tranche B] Loans into a new Borrowing pursuant
to Section 1.3 of the Agreement as follows:

     Existing Borrowing(s) to be continued or converted:

           US $____________ of US Dollar Eurodollar Loans with
           Eurodollar Interest Period ending ______________

           US $____________ of US Base Rate Loans

           If being combined with new US Loans, US $____________ of new
US Loans to be advanced on  ____________, ________

           Aggregate amount of new Borrowing:         US $__________________

           Type of US Loans in new Borrowing:             __________________

           Date of continuation or conversion:            __________________

     Length of Eurodollar Interest Period for US Dollar Eurodollar Loans
                       (1, 2, 3 or 6 months):              ___________ months

     To meet the conditions set out in the Credit Agreement for such
conversion/continuation, US Borrower hereby represents, warrants,
acknowledges, and agrees to and with US Agent and each Lender that:

      (a)  The officer of US Borrower or such other Person duly
     authorized by the President of US Borrower signing this
     instrument is the duly elected, qualified and acting officer of
     US Borrower or such other Person duly authorized by the
     President of US Borrower as indicated below such officer's
     signature hereto having all necessary authority to act for US
     Borrower in making the request herein contained.

      (b)  There does not exist on the date hereof any condition or
     event which constitutes a Default which has not been waived in
     writing as provided in Section 10.1(a) of the Credit Agreement.

      (c)  The US Loan Documents have not been modified, amended or
     supplemented by any unwritten representations or promises, by
     any course of dealing, or by any other means not provided for
     in Section 10.1(a) of the Agreement.  The Credit Agreement and
     the other US Loan Documents are hereby ratified, approved, and
     confirmed in all respects.

     The officer of US Borrower or such other Person duly authorized
by the President of US Borrower signing this instrument hereby
certifies that, to the best of his knowledge after due inquiry, the
above representations, warranties, acknowledgments, and agreements
of US Borrower are true, correct and complete.

       IN WITNESS WHEREOF this instrument is executed as of
__________________, 1999.

                              QUESTAR MARKET RESOURCES, INC.

                              By:
                              Name:
                              Title:

                                                             EXHIBIT D

                       CERTIFICATE ACCOMPANYING
                         FINANCIAL STATEMENTS

       Reference is made to that certain US Credit Agreement dated
as of April 19, 1999 (as from time to time amended, the
"Agreement"), by and among Questar Market Resources, Inc., a Utah
corporation ("US Borrower"), NationsBank, N.A., individually and as
administrative agent ("US Agent"), and certain financial
institutions ("Lenders"), which Agreement is in full force and
effect on the date hereof.  Terms which are defined in the Agreement
are used herein with the meanings given them in the Agreement.

       This Certificate is furnished pursuant to Section 6.1(b) of
the Agreement.  Together herewith US Borrower is furnishing to US
Agent and each Lender US Borrower's *[audited/unaudited] financial
statements (the "Financial Statements") as at
(the "Reporting Date").  US Borrower hereby represents, warrants,
and acknowledges to US Agent and each Lender that:

        (a)    the officer of US Borrower signing this instrument is
       the duly elected, qualified and acting Vice President -
       Finance of US Borrower and as such is US Borrower's chief
       financial officer;

        (b)    the Financial Statements are accurate and complete
       and satisfy the requirements of the Agreement;

        (c)    attached hereto is a schedule of calculations showing
       US Borrower's compliance as of the Reporting Date with the
       requirements of Sections                      of the
       Agreement *[and US Borrower's non-compliance as of such date
       with the requirements of Section(s) 7.11 and 7.12 of the
       Agreement];

        (d)    on the Reporting Date US Borrower was, and on the
       date hereof US Borrower is, in full compliance with the
       disclosure requirements of Section 6.2(c) and 6.4 of the
       Agreement, and no Default otherwise existed on the Reporting
       Date or otherwise exists on the date of this instrument
       *[except for Default(s) under Section(s)
       of the Agreement, which *[is/are] more fully described on a
       schedule attached hereto].

        (e)    *[Unless otherwise disclosed on a schedule attached
       hereto,] The representations and warranties of US Borrower
       set forth in the Agreement and the other US Loan Documents
       are true and correct on and as of the date hereof (except to
       the extent that the facts on which such representations and
       warranties are based have been changed by the extension of
       credit under the Agreement), with the same effect as though
       such representations and warranties had been made on and as
       of the date hereof.

       The officer of US Borrower signing this instrument hereby
certifies that he has reviewed the Loan Documents and the Financial
Statements and has otherwise undertaken such inquiry as is in his
opinion necessary to enable him to express an informed opinion with
respect to the above representations, warranties and acknowledgments
of US Borrower and, to the best of his knowledge, such
representations, warranties, and acknowledgments are true, correct
and complete.

       IN WITNESS WHEREOF, this instrument is executed as of
____________, 1999.

                              QUESTAR MARKET RESOURCES, INC.

                              By:
                              Name:
                              Title:

                                                             EXHIBIT E

               OPINION OF US BORROWER'S COUNSEL

                       [To be inserted.]

                                                             EXHIBIT F

                      ASSIGNMENT AND ACCEPTANCE

       Reference is made to the US Credit Agreement dated as of
April 19, 1999 (the "Credit Agreement") among Questar Market
Resources, Inc., a Utah corporation (the "US Borrower"), the Lenders
(as defined in the Credit Agreement) and NationsBank, N.A.,
individually and as administrative agent for the Lenders (the "US
Agent"). Terms defined in the Credit Agreement are used herein with
the same meaning.

       The "Assignor" and the "Assignee" referred to on Schedule 1
agree as follows:

       1.      The Assignor hereby sells and assigns to the
Assignee, without recourse and without representation or warranty
except as expressly set forth herein, and the Assignee hereby
purchases and assumes from the Assignor, an interest in and to the
Assignor's rights and obligations under the Credit Agreement and the
other US Loan Documents as of the date hereof equal to the
percentage interest specified on Schedule 1 of all outstanding
rights and obligations under the Credit Agreement and the other US
Loan Documents.  After giving effect to such sale and assignment,
the Assignee's Maximum US Credit Amount and the amount of the Loans
owing to the Assignee will be as set forth on Schedule 1.

       2.      The Assignor (i) represents and warrants that it is
the legal and beneficial owner of the interest being assigned by it
hereunder and that such interest is free and clear of any adverse
claim; (ii) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or
representations made in or in connection with the US Loan Documents
or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the US Loan Documents or any other
instrument or document furnished pursuant thereto; (iii) makes no
representation or warranty and assumes no responsibility with
respect to the financial condition of any Restricted Person or the
performance or observance by any Restricted Person of any of its
obligations under the US Loan Documents or any other instrument or
document furnished pursuant thereto; and (iv) attaches the US Note
held by the Assignor and requests that US Agent exchange such US
Note for new US Notes payable to the order of the Assignee in an
amount equal to the Maximum US Credit Amount assumed by the Assignee
pursuant hereto and to the Assignor in an amount equal to the
Maximum US Credit Amount retained by the Assignor, if any, as
specified on Schedule 1.

       3.      The Assignee (i) confirms that it has received a copy
of the Credit Agreement, together with copies of the financial
statements referred to in Section 6.2 thereof and such other
documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into this Assignment and
Acceptance; (ii) agrees that it will, independently and without
reliance upon US Agent, the Assignor or any other Lender and based
on such documents and information as it shall deem appropriate at
the time, continue to make its own credit decisions in taking or not
taking action under the Credit Agreement; (iii) confirms that it is
an Eligible Transferee; (iv) appoints and authorizes US Agent to
take such action as US Agent on its behalf and to exercise such
powers and discretion under the Credit Agreement as are delegated to
US Agent by the terms thereof, together with such powers and
discretion as are reasonably incidental thereto; (v) agrees that it
will perform in accordance with their terms all of the obligations
that by the terms of the Credit Agreement are required to be
performed by it as a Lender; and (vi) attaches any U.S. Internal
Revenue Service or other forms required under Section 3.9

       4.      Following the execution of this Assignment and
Acceptance, it will be delivered to US Agent for acceptance and
recording by US Agent.  The effective date for this Assignment and
Acceptance (the "Effective Date") shall be the date of acceptance
hereof by US Agent, unless otherwise specified on Schedule 1.

       5.      Upon such acceptance and recording by US Agent, as of
the Effective Date, (i) the Assignee shall be a party to the Credit
Agreement and, to the extent provided in this Assignment and
Acceptance, have the rights and obligations of a Lender thereunder
and (ii) the Assignor shall, to the extent provided in this
Assignment and Acceptance, relinquish its rights and be released
from its obligations under the Credit Agreement.

       6.      Upon such acceptance and recording by US Agent, from
and after the Effective Date, US Agent shall make all payments under
the Credit Agreement and the US Notes in respect of the interest
assigned hereby (including, without limitation, all payments of
principal, interest and commitment fees with respect thereto) to the
Assignee.  The Assignor and Assignee shall make all appropriate
adjustments in payments under the Credit Agreement and the US Notes
for periods prior to the Effective Date directly between themselves.

       7.      This Assignment and Acceptance shall be governed by,
and construed in accordance with, the Laws of the State of Utah.

       8.      This Assignment and Acceptance may be executed in any
number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be
an original and all of which taken together shall constitute one and
the same agreement. Delivery of an executed counterpart of Schedule
1 to this Assignment and Acceptance by telecopier shall be effective
as delivery of a manually executed counterpart of this Assignment
and Acceptance.

       IN WITNESS WHEREOF, the Assignor and the Assignee have caused
Schedule 1 to this Assignment and Acceptance to be executed by their
officers thereunto duly authorized as of the date specified thereon.

                              SCHEDULE 1
                                  to
                      ASSIGNMENT AND ACCEPTANCE

       Percentage interest assigned:                             _____%

       Assignee's Maximum US Credit Amount:                 US $ _____

       Aggregate outstanding principal amount
         of Loans assigned:                                 US $ _____

       Principal amount of US Note payable to Assignee:     US $ _____

       Principal amount of US Note payable to Assignor:     US $ _____

       Effective Date (if other than date
            of acceptance by US Agent):                     *_____,___

                                        [NAME OF ASSIGNOR], as Assignor

                                             By:
                                             Title:

                                             Dated:         ,

                                             [NAME OF ASSIGNEE], as
                                             Assignee

                                             By:
                                             Title:

                                             Domestic Lending Office:

                                             Eurodollar Lending Office:

       *       This date should be no earlier than five Business
               Days after the delivery of this Assignment and
               Acceptance to US Agent.

Accepted [and Approved] **
this        day of                       , 19 _

[NationsBank, N.A./Bank of America]

By:
Title:

[Approved this             day
of                             , 19

QUESTAR MARKET RESOURCES, INC.

By:                     ]**
Title:

          **   Required if the Assignee is an Eligible Transferee
               solely by reason of subsection (b) of the definition
               of "Eligible Transferee".

                                                             EXHIBIT G

              LETTER OF CREDIT APPLICATION AND AGREEMENT

                           [To Be Inserted]

                                                             EXHIBIT H

                       COMPETITIVE BID REQUEST

NationsBank, N.A.
 as US Agent
901 Main Street
Post Office Box 830104
Dallas, Texas  75202
                               Attention: ____________________    [Date]

                    QUESTAR MARKET RESOURCES, INC.

Ladies and Gentlemen:

     Reference is made to that certain US Credit Agreement dated as
of April 19, 1999 (as from time to time amended, the "Agreement"),
by and among Questar Market Resources, Inc. ("US Borrower"),
NationsBank, N.A., individually and as administrative agent ("US
Agent"), and certain financial institutions ("Lenders").  Terms
which are defined in the Agreement and which are used but not
defined herein are used herein with the meanings given them in the
Agreement.  US Borrower hereby gives notice pursuant to Section
2.__(a) of the Agreement that it requests Competitive Bids under the
Agreement on the terms set forth below:

     1.     Proposed Date of Competitive Bid Loan:               .
            (which is a Business Day)

     2.     Aggregate Principal Amount of Competitive Bid Loan:
                    US $    .
            (US $5,000,000 or greater integral multiple of US
            $1,000,000)

     3.     Competitive Bid Interest Period and last day thereof:
            .
            (1 day to 7 days)

     To induce Lenders to make such Competitive Bids, US Borrower
hereby represents, warrants, acknowledges, and agrees to and with US
Agent and each Lender that:

            (a)     The officer of US Borrower signing this
     instrument is the duly elected, qualified and acting officer of
     US Borrower as indicated below such officer's signature hereto
     having all necessary authority to act for US Borrower in making
     the request herein contained.

            (b)     The representations and warranties of US
     Borrower set forth in the Agreement and the other US Loan
     Documents, except as expressly made as of specific date, are
     true and correct in all material respects on and as of the date
     hereof (except to the extent that the facts on which such
     representations and warranties are based have been changed by
     the extension of credit under the Agreement), with the same
     effect as though such representations and warranties had been
     made on and as of the date hereof.

            (c)     There does not exist on the date hereof any
     condition or event which constitutes a Default which has not
     been waived in writing as provided in Section 10.1(a) of the
     Agreement; nor will any such Default exist upon US Borrower's
     receipt and application of any Competitive Bid Loan made
     pursuant hereto.

            (d)     The sum of (i) the aggregate unpaid principal
     balance of the US Loans, after the making of any Competitive
     Bid Loan in the amount indicated hereby, plus (ii) the US LC
     Obligations outstanding, will not be in excess of the Maximum
     US Credit Amount on the date requested for the making of such
     Loans.

     The officer of US Borrower signing this instrument hereby
certifies that, to the best of his knowledge after due inquiry, the
above representations, warranties, acknowledgments, and agreements
of US Borrower are true, correct and complete.

     IN WITNESS WHEREOF, this instrument is executed as of
                 , 1999.

                            QUESTAR MARKET RESOURCES, INC.

                            By:
                            Name:
                            Title:

                                                             EXHIBIT I

                          INVITATION TO BID

To Lenders under the
 (as defined below)
                                   Attention: ____________________   [Date]

                    QUESTAR MARKET RESOURCES, INC.

Ladies and Gentlemen:

     Reference is made to that certain US Credit Agreement dated as
of April 19, 1999 (as from time to time amended, the "Agreement"),
by and among Questar Market Resources, Inc. ("US Borrower"),
NationsBank, N.A., individually and as administrative agent ("US
Agent"), and certain financial institutions ("Lenders").  Terms
which are defined in the Agreement and which are used but not
defined herein are used herein with the meanings given them in the
Agreement.  US Borrower has delivered a Competitive Bid Request
dated                                   pursuant to Section 1.7(a)
of the Agreement, and you are invited to submit a Competitive Bid by
not later than 9:00 a.m., Dallas, Texas time on the date specified
for the proposed Competitive Bid Loan.  Your Competitive Bid must
comply with Section 1.7(b) of the Agreement and the following terms
as set forth in US Borrower's Competitive Bid Request:

     1.     Proposed Date of Competitive Bid Loan:
   .
            (which is a Business Day)

     2.     Aggregate Principal Amount of Competitive Bid Loan:
                    US $    .
            (US $5,000,000 or greater integral multiple of US
            $1,000,000)

     3.     Competitive Bid Interest Period and last day thereof:
            .
            (from 7 days or more to the last day of the US Facility
            Commitment Period)

                            NATIONSBANK, N.A.,
                             as US Agent

                            By:
                            Name:
                            Title:

                                                             EXHIBIT J

                           COMPETITIVE BID

NationsBank, N.A.
 as US Agent
901 Main Street
Post Office Box 830104
Dallas, Texas  75202
                                   Attention: _______________         [Date]

                    QUESTAR MARKET RESOURCES, INC.

Ladies and Gentlemen:

     Reference is made to that certain US Credit Agreement dated as
of April 19, 1999 (as from time to time amended, the "Agreement"),
by and among Questar Market Resources, Inc.. ("US Borrower"),
NationsBank, N.A., individually and as administrative agent ("US
Agent"), and certain financial institutions ("Lenders").  Terms
which are defined in the Agreement and which are used but not
defined herein are used herein with the meanings given them in the
Agreement.  The undersigned Lender hereby makes a Competitive Bid
pursuant to Section 1.7(b) of the Agreement, in response to the
Competitive Bid Request of US Borrower dated ____________________,
on the following terms:

     1.     Principal Amount:  US $                              .
            (US $5,000,000 or greater integral multiple of US
            $1,000,000; multiple Competitive Bids may be accepted by
            US Borrower)

     2.     Competitive Bid Rate:         percent (__%)          .
            (expressed in decimal form to no more than four decimal
            places)

     3.     Competitive Bid Interest Period and last day thereof:
            .
            (1 day to 7 days)

     The undersigned Lender hereby confirms that it is prepared to
extend credit to US Borrower upon acceptance by US Borrower of this
Competitive Bid pursuant to Section 1.7(d) of the Agreement.

                                                  , Lender

                            By:
                            Name:
                            Title:

                                                             EXHIBIT K

                 COMPETITIVE BID ACCEPT/REJECT LETTER

NationsBank, N.A.
 as US Agent
901 Main Street
Post Office Box  830104
Dallas, Texas  75202
                                  Attention: ____________________     [Date]

                    QUESTAR MARKET RESOURCES, INC.

Ladies and Gentlemen:

     Reference is made to that certain US Credit Agreement dated as
of April 19, 1999 (as from time to time amended, the "Agreement"),
by and among Questar Market Resources, Inc. ("US Borrower"),
NationsBank, N.A., individually and as administrative agent ("US
Agent"), and certain financial institutions ("Lenders").  Terms
which are defined in the Agreement and which are used but not
defined herein are used herein with the meanings given them in the
Agreement.  Pursuant to Section 1.7(c) of the Agreement, US Borrower
hereby accepts the following Competitive Bids made in response to US
Borrower's Competitive Bid Request dated ____________________ for
Competitive Bid Loans maturing ____________________:

Lender                        Principal Amount  Interest Rate

                              US $                                  %

                              US $                                  %

                              US $                                  %

US Borrower hereby rejects the following Competitive Bids:

Lender                        Principal Amount  Interest Rate

                              US $                                  %

                              US $                                  %

                              US $                                  %

     The proceeds of the Competitive Bid Loans made pursuant to the
Competitive Bids accepted hereby should be deposited in NationsBank,
N.A. account number __________ on ____________________ [or wire
transferred to __________________].

                            QUESTAR MARKET RESOURCES, INC.

                            By:
                            Name:
                            Title:

                                                             EXHIBIT L

                         COMPETITIVE BID NOTE

                                     ___________  ____________, 1999

     FOR VALUE RECEIVED, the undersigned, Questar Market Resources,
Inc., a Utah corporation ("Borrower"), hereby promises to pay to the
order of

                     ("Lender"), the aggregate unpaid principal
amount of all Competitive Bid Loans made under this Note by Lender
to Borrower pursuant to the terms of the Credit Agreement (as
hereinafter defined), together with interest on the unpaid principal
balance thereof as hereinafter set forth, both principal and
interest payable as herein provided in lawful money of the United
States of America at the offices of US Agent under the Credit
Agreement, 901 Main Street, Dallas, Texas or at such other place
within Dallas County, Texas, as from time to time may be designated
by the holder of this Note.

     This Note (a) is issued and delivered under that certain US
Credit Agreement dated as of [___________], 1999, among Borrower,
NationsBank, N.A., individually and as administrative agent ("US
Agent"), and the lenders (including Lender) referred to therein (as
from time to time supplemented, amended or restated, the "Credit
Agreement"), and is a "Competitive Bid Note" as defined therein, and
(b) is subject to the terms and provisions of the Credit Agreement,
which contains provisions for payments and prepayments hereunder and
acceleration of the maturity hereof upon the happening of certain
stated events.  Payments on this Note shall be made and applied as
provided herein and in the Credit Agreement.  Reference is hereby
made to the Credit Agreement for a description of certain rights,
limitations of rights, obligations and duties of the parties hereto
and for the meanings assigned to terms used and not defined herein.

     For the purposes of this Note, "Competitive Bid Rate Payment
Date" means, with respect to each Competitive Bid Loan: (i) the day
on which the related Competitive Bid Interest Period ends, and (ii)
any day on which past due interest or past due principal is owed
hereunder with respect to such Competitive Bid Loan and is unpaid.
If the terms hereof or of the Credit Agreement provide that payments
of interest or principal with respect to such Competitive Bid Loan
shall be deferred from one Competitive Bid Rate Payment Date to
another day, such other day shall also be a Competitive Bid Rate
Payment Date.

     The principal amount of this Note and interest accrued hereon,
shall be due and payable as set forth in the Credit Agreement, and
shall in any event be due in full on the last day of the US Facility
Commitment Period.

     Each Competitive Bid Loan (exclusive of any past due principal
or past due interest) shall bear interest on each day during the
related Competitive Bid Interest Period at the Competitive Bid Rate
in effect on such day for such Competitive Bid Loan, provided that
if an Event of Default has occurred and is continuing such
Competitive Bid Loan shall bear interest on each day outstanding at
the applicable Default Rate in effect on such day.  On each
Competitive Bid Rate Payment Date relating to any Competitive Bid
Loan, Borrower shall pay to the holder hereof all unpaid interest
which has accrued on such Competitive Bid Loan to but not including
such Competitive Bid Rate Payment Date.

     All past due principal of and past due interest on Competitive
Bid Loans shall bear interest on each day outstanding at the
applicable Default Rate in effect on such day, and such interest
shall be due and payable daily as it accrues.  Notwithstanding the
foregoing provisions of this paragraph: (a) this Note shall never
bear interest in excess of the Highest Lawful Rate, and (b) if at
any time the rate at which interest is payable on this Note is
limited by the Highest Lawful Rate (by the foregoing clause (a) or
by reference to the Highest Lawful Rate in the definitions of
Competitive Bid Rate and Default Rate), this Note shall bear
interest at the Highest Lawful Rate and shall continue to bear
interest at the Highest Lawful Rate until such time as the total
amount of interest accrued hereon equals (but does not exceed) the
total amount of interest which would have accrued hereon had there
been no Highest Lawful Rate applicable hereto.

     Notwithstanding the foregoing paragraph and all other
provisions of this Note, in no event shall the interest payable
hereon, whether before or after maturity, exceed the maximum amount
of interest which, under applicable Law, may be charged on this
Note, and this Note is expressly made subject to the provisions of
the Credit Agreement which more fully set out the limitations on how
interest accrues hereon.  The term "applicable Law" as used in this
Note shall mean the laws of the State of Utah or the laws of the
United States, whichever laws allow the greater interest, as such
laws now exist or may be changed or amended or come into effect in
the future.

     If this Note is placed in the hands of an attorney for
collection after default, or if all or any part of the indebtedness
represented hereby is proved, established or collected in any court
or in any bankruptcy, receivership, debtor relief, probate or other
court proceedings, Borrower and all endorsers, sureties and
guarantors of this Note jointly and severally agree to pay
reasonable attorneys' fees and collection costs to the holder hereof
in addition to the principal and interest payable hereunder.

     Borrower and all endorsers, sureties and guarantors of this
Note hereby severally waive demand, presentment, notice of demand
and of dishonor and nonpayment of this Note, protest, notice of
protest, notice of intention to accelerate the maturity of this
Note, declaration or notice of acceleration of the maturity of this
Note, diligence in collecting, the bringing of any suit against any
party and any notice of or defense on account of any extensions,
renewals, partial payments or changes in any manner of or in this
Note or in any of its terms, provisions and covenants, or any
releases or substitutions of any security, or any delay, indulgence
or other act of any trustee or any holder hereof, whether before or
after maturity.

     THIS NOTE AND THE RIGHTS AND DUTIES OF THE PARTIES HERETO SHALL
BE GOVERNED BY THE LAWS OF THE STATE OF UTAH (WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW), EXCEPT TO THE EXTENT THE SAME ARE
GOVERNED BY APPLICABLE FEDERAL LAW.

                            QUESTAR MARKET RESOURCES, INC.

                            By:
                            Name:
                            Title:

                                                           [Execution]

               FOURTH AMENDMENT TO US CREDIT AGREEMENT

       THIS FOURTH AMENDMENT TO US CREDIT AGREEMENT (herein called
the "Amendment") dated effective as of April 17, 2000, by and among
Questar Market Resources, Inc., a Utah corporation ("US Borrower"),
Bank of America, N.A. ("Bank of America"), individually and as
administrative agent for the Lenders, as defined below ("US Agent"),
and the undersigned Lenders.

                         W I T N E S S E T H:

       WHEREAS, US Borrower, US Agent and the lenders as signatories
thereto (the "Original Lenders") entered into that certain US Credit
Agreement dated as of April 19, 1999, as amended by that certain
First Amendment to US Credit Agreement dated as of May 17, 1999, as
amended by that certain Second Amendment to US Credit Agreement
dated as of July 30, 1999, and as amended by that certain Third
Amendment to US Credit Agreement dated as of November 30, 1999 (the
"Original Agreement"), for the purpose and consideration therein
expressed, whereby the Original Lenders became obligated to make
loans to US Borrower as therein provided; and

       WHEREAS, US Borrower, Agent and The Sumitomo Bank, Limited
("Sumitomo") desire that Sumitomo make a commitment under the US
Credit Agreement in the aggregate amount of $7,666,666.67, of which
fifty percent (50%) shall be through assignment from Bank of America
(the "Bank of America Assigned Amount") and fifty percent (50%)
shall be through an increase in the US Maximum Credit Amount, the
Tranche A Maximum Credit Amount and the Tranche B Maximum Credit
Amount; and

       WHEREAS, US Borrower, Agent, Mellon Bank, N.A. ("Mellon"),
and The Industrial Bank of Japan, Limited ("IBJ") desire that IBJ
make a commitment under the US Credit Agreement in the aggregate
amount of $7,666,666.67, all of which shall be through assignment
from Mellon (the "Mellon Assigned Amount"); and

       WHEREAS, contemporaneously with the execution and delivery of
this Amendment, Bank of America and Sumitomo are entering into that
certain Assignment and Acceptance dated of even date herewith,
whereby Bank of America is selling and assigning to Sumitomo the
Bank of America Assigned Amount of Bank of America's rights and
obligations under the US Credit Agreement and the other US Loan
Documents as of the date hereof; and

       WHEREAS, contemporaneously with the execution and delivery of
this Amendment, Mellon and IBJ are entering into that certain
Assignment and Acceptance dated of even date herewith, whereby
Mellon is selling and assigning to IBJ the Mellon Assigned Amount of
Mellon's rights and obligations under the US Credit Agreement and
the other US Loan Documents as of the date hereof; and

       WHEREAS, US Borrower, US Agent, Sumitomo, IBJ and the other
undersigned Lenders desire to amend the definitions of the Tranche A
Maximum Credit Amount, the Tranche B Conversion Date, the Tranche B
Maximum Credit Amount and the US Maximum Credit Amount, and desire
to amend the Lenders Schedule; and

       WHEREAS, the increases in the US Maximum Credit Amount, the
Tranche A Maximum Credit Amount and the Tranche B Maximum Credit
Amount will be provided by commitments of Sumitomo, and the
obligations of the Original Lenders to make Loans will not be
increased by this Amendment; and

       WHEREAS, now that the US Maximum Credit Amount is fully
committed by US Lenders, minor adjustments in the Tranche B Note
amounts shall be made and new Tranche B Notes shall be issued to US
Lenders;

       NOW, THEREFORE, in consideration of the premises and the
mutual covenants and agreements contained herein and in the Original
Agreement, in consideration of the loans which may hereafter be made
by Lenders to US Borrower, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto do hereby agree as follows:

                              ARTICLE I.

                      Definitions and References

       Section 1.1.  Terms Defined in the Original Agreement.
Unless the context otherwise requires or unless otherwise expressly
defined herein, the terms defined in the Original Agreement shall
have the same meanings whenever used in this Amendment.

       Section 1.2.  Other Defined Terms.  Unless the context
otherwise requires, the following terms when used in this Amendment
shall have the meanings assigned to them in this Section 1.2.

        "Amendment" means this Fourth Amendment to US Credit Agreement.

        "Amendment Documents" means this Amendment, the IBJ
       Assignment and Acceptance, the Sumitomo Assignment and
       Acceptance and the New US Notes.

        "IBJ Assignment and Acceptance" means the Assignment and
       Acceptance of even date herewith by and between IBJ, Mellon,
       Agent and US Borrower, in form attached hereto as Exhibit C-1.

        "Lenders" means the Original Lenders, IBJ and Sumitomo.

        "New US Notes" means (i) the Tranche A Notes of even date
       herewith made payable to the order of each of Bank of
       America, IBJ, Mellon and Sumitomo, in form attached hereto as
       Exhibit A-1, with appropriate insertions, (ii) the Tranche B
       Notes of even date herewith made payable to the order of US
       Lenders, in form attached hereto as Exhibit A-2, with
       appropriate insertions, and (iii) the Competitive Bid Notes
       of even date herewith made payable to the order of IBJ and
       Sumitomo, in form attached hereto as Exhibit A-3.

        "Sumitomo Assignment and Acceptance" means the Assignment
       and Acceptance of even date herewith by and between Bank of
       America, Sumitomo and US Borrower, in form attached hereto as
       Exhibit C-2.

        "US Credit Agreement" means the Original Agreement as
        amended hereby.

                             ARTICLE II.

                   Amendments to Original Agreement

       Section 2.1.  Defined Terms.  The definitions of "US Maximum
Credit Amount", "Tranche A Maximum Credit Amount", "Tranche B
Maximum Credit Amount" and "Tranche B Conversion Date" in Annex I of
the Original Agreement are hereby amended in their entirety to read
as follows:

        "'Tranche B Conversion Date' means April 16, 2001, or such
       later day to which the Tranche B Conversion Date is extended
       pursuant to Section 1.1 of the US Agreement."

        "'Tranche A Maximum Credit Amount' means the amount of US
       $180,000,000."

        "'Tranche B Maximum Credit Amount' means the amount of US
       $50,000,000."

        "'US Maximum Credit Amount' means the amount of US
       $230,000,000."

       Section 2.2.  Lenders Schedule.  Annex II to the Original
Agreement is hereby amended in its entirety to read as set forth in
Exhibit B attached hereto.

                             ARTICLE III.

                     Conditions of Effectiveness

       Section 3.1.  Effective Date.  This Amendment shall become
effective as of the date first above written when, and only when:

       (i) US Agent shall have received, at US Agent's office, a
counterpart of this Amendment executed and delivered by Required
Lenders, US Borrower, IBJ and Sumitomo;

       (ii) US Borrower shall have issued and delivered to US Agent,
for subsequent delivery to IBJ, a Tranche A Note with appropriate
insertions payable to the order of IBJ, duly executed on behalf of
US Borrower, dated the date hereof;

       (iii) US Borrower shall have issued and delivered to US
Agent, for subsequent delivery to Mellon, a Tranche A Note with
appropriate insertions payable to the order of Mellon, duly executed
on behalf of US Borrower, dated the date hereof;

       (iv) US Borrower shall have issued and delivered to US Agent,
for subsequent delivery to Sumitomo, a Tranche A Note with
appropriate insertions payable to the order of Sumitomo, duly
executed on behalf of US Borrower, dated the date hereof;

       (v) US Borrower shall have issued and delivered to US Agent,
a Tranche A Note with appropriate insertions payable to the order of
Bank of America, duly executed on behalf of US Borrower, dated the
date hereof;

       (vi) US Borrower shall have issued and delivered to US Agent,
for subsequent delivery to each US Lender, a Tranche B Note for each
US Lender with appropriate insertions payable to the order of the
appropriate US Lender;

       (vii) US Borrower shall have issued and delivered to US
Agent, for subsequent delivery to IBJ, a Competitive Bid Note with
appropriate insertions payable to the order of IBJ, duly executed on
behalf of US Borrower, dated the date hereof;

       (viii) US Borrower shall have issued and delivered to US
Agent, for subsequent delivery to Sumitomo, a Competitive Bid Note
with appropriate insertions payable to the order of Sumitomo, duly
executed on behalf of US Borrower, dated the date hereof;

       (ix) US Agent shall have received, at US Agent's office, a
counterpart of the IBJ Assignment and Acceptance executed and
delivered by US Borrower, Mellon and IBJ;

       (x) US Agent shall have received, at US Agent's office, a
counterpart of the Sumitomo Assignment and Acceptance executed and
delivered by US Borrower and Sumitomo;

       (xi) US Agent shall have received, at US Agent's office, a
certificate of the Secretary or Assistant Secretary and of the
President, Chief Financial Officer or Vice President of
Administrative Services of US Borrower dated the date of this
Amendment certifying: (a) that resolutions adopted in connection
with the Original Agreement by the Board of Directors of the US
Borrower authorize the execution, delivery and performance of this
Amendment by US Borrower, (b) to the names and true signatures of
the officers of the US Borrower authorized to sign this Amendment,
and (c) that all of the representations and warranties set forth in
Article IV hereof are true and correct at and as of the time of such
effectiveness; and

       (xii) US Agent shall have additionally received from US
Borrower, in connection with such US Loan Documents, all other fees
and reimbursements to be paid to US Agent pursuant to any US Loan
Documents, or otherwise due US Agent and including fees and
disbursements of US Agent's attorneys.

                             ARTICLE IV.

                    Representations and Warranties

       Section 4.1.  Representations and Warranties of Borrower.  In
order to induce US Agent and the undersigned Lenders to enter into
this Amendment, US Borrower represents and warrants to US Agent that:

        (a)    The representations and warranties contained in
       Article V of the Original Agreement are true and correct at
       and as of the time of the effectiveness hereof; except that
       US Borrower currently has a Subsidiary by the name of Canor
       Energy Ltd. ("Canor"), which is not listed in the Disclosure
       Schedule.  Canor shall be merged with and into Celsius Energy
       Resources, Ltd. ("Celsius"), with the surviving entity being
       Celsius by December 31, 2000.

        (b)    US Borrower has duly taken all action necessary to
       authorize the execution and delivery by it of the Amendment
       Documents and to authorize the consummation of the
       transactions contemplated hereby and thereby and the
       performance of its obligations hereunder and thereunder.  US
       Borrower is duly authorized to borrow funds under the US
       Credit Agreement.

        (c)    The execution and delivery by the various Restricted
       Persons of the Amendment Documents to which each is a party,
       the performance by each of its obligations under such
       Amendment Documents and the consummation of the transactions
       contemplated by the various Amendment Documents do not and
       will not (a) conflict with any provision of (i) any Law, (ii)
       the organizational documents of any Restricted Person, or
       (iii) any agreement, judgment, license, order or permit
       applicable to or binding upon any Restricted Person, or (b)
       result in the acceleration of any Indebtedness owed by any
       Restricted Person, or (c) result in or require the creation
       of any Lien upon any assets or properties of any Restricted
       Person, except as expressly contemplated or permitted in the
       Loan Documents.  Except as expressly contemplated in the Loan
       Documents no consent, approval, authorization or order of,
       and no notice to or filing with any Tribunal or third party
       is required in connection with the execution, delivery or
       performance by any Restricted Person of any Amendment
       Document or to consummate any transactions contemplated by
       the Amendment Documents.

        (d)    This Amendment is, and the other Amendment Documents
       when duly executed and delivered will be, a legal, valid and
       binding obligation of each Restricted Person which is a party
       hereto or thereto, enforceable in accordance with their
       terms, except as such enforcement may be limited by
       bankruptcy, insolvency or similar Laws of general application
       relating to the enforcement of creditors' rights and by
       equitable principles of general application relating to the
       enforcement of creditor's rights.

                              ARTICLE V.

                            Miscellaneous

       Section 5.1.  Ratification of Agreements.  The Original
Agreement as hereby amended is hereby ratified and confirmed in all
respects.  The US Loan Documents, as they may be amended or affected
by the various Amendment Documents, are hereby ratified and
confirmed in all respects. Any reference to the US Credit Agreement
in any Loan Document shall be deemed to be a reference to the
Original Agreement as hereby amended.  Any reference to the Lenders
or the Lender Parties in any Loan Document shall be deemed to
include IBJ and Sumitomo.  Any reference to the Tranche A Notes, the
Tranche B Notes and the Competitive Bid Notes in any other US Loan
Document shall be deemed to include a reference to the New US Notes
issued and delivered pursuant to this Amendment. The execution,
delivery and effectiveness of this Amendment and each of the New US
Notes shall not, except as expressly provided herein or therein,
operate as a waiver of any right, power or remedy of Lenders under
the US Credit Agreement, the US Notes, or any other US Loan Document
nor constitute a waiver of any provision of the US Credit Agreement,
the US Notes or any other US Loan Document.

       Section 5.2.  Survival of Agreements; Cumulative Nature.  All
of Restricted Persons' various representations, warranties,
covenants and agreements herein shall survive the execution and
delivery of this Amendment and the other Amendment Documents and the
performance hereof and thereof, including without limitation the
making or granting of the US Loans and the delivery of the New US
Notes and shall further survive until all of the US Obligations are
paid in full to each Lender Party and all of Lender Parties'
obligations to US Borrower are terminated.  All statements and
agreements contained in any certificate or instrument delivered by
any Restricted Person hereunder or under the US Credit Agreement to
any Lender Party shall be deemed representations and warranties by
US Borrower or agreements and covenants of US Borrower under this
Amendment and under the US Credit Agreement.  The representations,
warranties, indemnities, and covenants made by Restricted Persons in
the US Loan Documents, and the rights, powers, and privileges
granted to Lender Parties in the US Loan Documents, are cumulative,
and, except for expressly specified waivers and consents, no Loan
Document shall be construed in the context of another to diminish,
nullify, or otherwise reduce the benefit to any Lender Party of any
such representation, warranty, indemnity, covenant, right, power or
privilege.  In particular and without limitation, no exception set
out in this Amendment or any other Amendment Document to any
representation, warranty, indemnity, or covenant herein or therein
contained shall apply to any similar representation, warranty,
indemnity, or covenant contained in any other Loan Document, and
each such similar representation, warranty, indemnity, or covenant
shall be subject only to those exceptions which are expressly made
applicable to it by the terms of the various US Loan Documents.

       Section 5.3.  Loan Documents.  This Amendment, the IBJ
Assignment and Acceptance, the Sumitomo Assignment and Acceptance
and the New US Notes are each a US Loan Document, and all provisions
in the US Credit Agreement pertaining to US Loan Documents apply
hereto and thereto.

       Section 5.5.  Governing Law.  This Amendment, the IBJ
Assignment and Acceptance, the Sumitomo Assignment and Acceptance
and the New US Notes shall each be governed by and construed in
accordance the laws of the State of Utah and any applicable laws of
the United States of America in all respects, including
construction, validity and performance.  US Borrower hereby
irrevocably submits itself and each other Restricted Person to the
non-exclusive jurisdiction of the state and federal courts sitting
in the State of Utah and agrees and consents that service of process
may be made upon it or any Restricted Person in any legal proceeding
relating to the Amendment Documents or the Obligations by any means
allowed under Utah or federal law.

       Section 5.6.  Counterparts.  This Amendment may be separately
executed in any number of counterparts and by the different parties
hereto in separate counterparts, each of which when so executed
shall be deemed to constitute one and the same Amendment.  This
Amendment may be validly executed and delivered by facsimile or
other electronic transmission.

       THIS AMENDMENT AND THE OTHER US LOAN DOCUMENTS REPRESENT THE
FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF
THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

   [The remainder of this page has been intentionally left blank.]

       IN WITNESS WHEREOF, this Amendment is executed as of the date
first above written.

                              QUESTAR MARKET RESOURCES, INC.
                              US Borrower

                              By:
                                     G. L. Nordloh
                                     President and Chief Executive
                                     Officer

                               BANK OF AMERICA, N.A.,
                               Administrative Agent, US LC Issuer and
                               Lender

                              By:
                                     Tracey S. Barclay
                                     Principal

                              THE SUMITOMO BANK, LIMITED
                              Lender

                              By:
                              Name:
                              Title:

                              THE INDUSTRIAL BANK OF JAPAN, LIMITED
                              Lender

                              By:
                              Name:
                              Title:

                              TORONTO DOMINION (TEXAS), INC.
                              Lender

                              By:
                              Name:
                              Title:

                              BANK OF MONTREAL
                              Lender

                              By:
                              Name:
                              Title:

                              BANK ONE, N.A. (Main Office Chicago)
                              Lender

                              By:
                              Name:
                              Title:

                              FIRST SECURITY BANK, N.A.
                              Lender

                              By:
                              Name:
                              Title:

                              MELLON BANK, N.A.
                              Lender

                              By:
                              Name:
                              Title:

                              U.S. BANK NATIONAL ASSOCIATION
                              Lender

                              By:
                              Name:
                              Title:

                              THE BANK OF TOKYO-MITSUBISHI, LTD.,
                               HOUSTON AGENCY
                              Lender

                              By:
                              Name:
                              Title:

                             EXHIBIT A-1

                           Tranche A Notes

                             EXHIBIT A-2

                           Tranche B Notes

                             EXHIBIT A-3

                        Competitive Bid Notes

                              EXHIBIT B

                          LENDER'S SCHEDULE

                             EXHIBIT C-1

                    IBJ ASSIGNMENT AND ACCEPTANCE

                             EXHIBIT C-2

                  SUMITOMO ASSIGNMENT AND ACCEPTANCE

                                                           [Execution]

                FIFTH AMENDMENT TO US CREDIT AGREEMENT

       THIS FIFTH AMENDMENT TO US CREDIT AGREEMENT (herein called
the "Amendment") made as of October 6, 2000, by and among Questar
Market Resources, Inc., a Utah corporation ("US Borrower"), Bank of
America, N.A., individually and as administrative agent for the
Lenders as defined below ("US Agent"), and the undersigned Lenders.

                         W I T N E S S E T H:

       WHEREAS, US Borrower, US Agent and the lenders as signatories
thereto (the "Lenders") entered into that certain US Credit
Agreement dated as of April 19, 1999, as amended by that certain
First Amendment to US Credit Agreement dated as of May 17, 1999, as
amended by that certain Second Amendment to US Credit Agreement
dated as of July 30, 1999, as amended by that certain Third
Amendment to US Credit Agreement dated as of November 30, 1999, and
as amended by that certain Fourth Amendment to US Credit Agreement
dated as of April 17, 2000 (the "Original Agreement"), for the
purpose and consideration therein expressed, whereby the Lenders
became obligated to make loans to US Borrower as therein provided; and

       WHEREAS, US Borrower, US Agent and the undersigned Lenders
desire to amend the Original Agreement for the purposes as provided
herein;

       NOW, THEREFORE, in consideration of the premises and the
mutual covenants and agreements contained herein and in the Original
Agreement, in consideration of the loans which may hereafter be made
by Lenders to US Borrower, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto do hereby agree as follows:

                              ARTICLE I.

                      Definitions and References

       Section 1.1.   Terms Defined in the Original Agreement.
Unless the context otherwise requires or unless otherwise expressly
defined herein, the terms defined in the Original Agreement shall
have the same meanings whenever used in this Amendment.

       Section 1.2.   Other Defined Terms.  Unless the context
otherwise requires, the following terms when used in this Amendment
shall have the meanings assigned to them in this Section 1.2.

        "Amendment" means this Fifth Amendment to US Credit Agreement.

        "US Credit Agreement" means the Original Agreement as
amended hereby.

                             ARTICLE II.

                   Amendments to Original Agreement

       Section 2.1.   Hedging Contracts.  Section 7.10(i)(B) of the
Original Agreement is hereby amended in its entirety to read as
follows:

        "(B)   such contracts do not require any Restricted Person
       to provide any Lien or letter of credit to secure US
       Borrower's obligations thereunder, other than Liens on cash
       or cash equivalents and letters of credit; provided that the
       aggregate amount of cash and cash equivalents subject to
       Liens securing such contracts and the undrawn amount of all
       letters of credit  securing such contracts shall not exceed
       (i) US $45,000,000 at any time, through and including
       December 31, 2000 and (ii) US $30,000,000 at any time
       thereafter."

                             ARTICLE III.

                                Waiver

       Section 3.1.   Waiver.  US Borrower has informed US Agent
that US Borrower and Restricted Persons may have violated the
provisions of Section 7.10(i) of the Original Agreement for the
Fiscal Quarter ended September 30, 2000.  US Agent and the
undersigned Lenders hereby (a) waive any such violation of Section
7.10(i) and (b) waive any Default or Event of Default resulting from
such violation.

                             ARTICLE IV.

                     Conditions of Effectiveness

       Section 4.1.   Effective Date.  This Amendment shall become
effective as of the date first above written when, and only when,
(i) US Agent shall have received, at US Agent's office, a
counterpart of this Amendment executed and delivered by US Borrower
and Required Lenders, (ii) a certificate of the Secretary or
Assistant Secretary and of the President, Chief Financial Officer or
Vice President of Administrative Services of US Borrower dated the
date of this Amendment certifying: (a) that resolutions adopted in
connection with the Original Agreement by the Board of Directors of
the US Borrower authorize the execution, delivery and performance of
this Amendment by US Borrower, (b) to the names and true signatures
of the officers of the US Borrower authorized to sign this
Amendment, and (c) that all of the representations and warranties
set forth in Article V hereof are true and correct at and as of the
time of such effectiveness; and (iii) US Agent shall have
additionally received from US Borrower, in connection with such US
Loan Documents, all other fees and reimbursements to be paid to US
Agent pursuant to any US Loan Documents, or otherwise due US Agent
and including fees and disbursements of US Agent's attorneys.

                              ARTICLE V.

                    Representations and Warranties

       Section 5.1.   Representations and Warranties of Borrower.
In order to induce US Agent and Lenders to enter into this
Amendment, US Borrower represents and warrants to US Agent that:

        (a)    The representations and warranties contained in
       Article V of the Original Agreement are true and correct at
       and as of the time of the effectiveness hereof.

        (b)    US Borrower has duly taken all action necessary to
       authorize the execution and delivery by it of this Amendment
       and to authorize the consummation of the transactions
       contemplated hereby and the performance of its obligations
       hereunder.  US Borrower is duly authorized to borrow funds
       under the US Credit Agreement.

        (c)    The execution and delivery by US Borrower of this
       Amendment, the performance by US Borrower of its obligations
       hereunder and the consummation of the transactions
       contemplated herein do not and will not (a) conflict with any
       provision of (i) any Law, (ii) the organizational documents
       of US Borrower, or (iii) any agreement, judgment, license,
       order or permit applicable to or binding upon US Borrower, or
       (b) result in the acceleration of any Indebtedness owed by US
       Borrower, or (c) result in or require the creation of any
       Lien upon any assets or properties of US Borrower, except as
       expressly contemplated or permitted in the Loan Documents.
       Except as expressly contemplated in the Loan Documents no
       consent, approval, authorization or order of, and no notice
       to or filing with any Tribunal or third party is required in
       connection with the execution, delivery or performance by US
       Borrower of this Amendment or to consummate any transactions
       contemplated herein.

        (d)    This Amendment is a legal, valid and binding
       obligation of US Borrower, enforceable in accordance with its
       terms, except as such enforcement may be limited by
       bankruptcy, insolvency or similar Laws of general application
       relating to the enforcement of creditors' rights and by
       equitable principles of general application relating to the
       enforcement of creditor's rights.

                             ARTICLE VI.

                            Miscellaneous

       Section 6.1.   Ratification of Agreements.  The Original
Agreement as hereby amended is hereby ratified and confirmed in all
respects.  The US Loan Documents, as they may be amended or affected
by this Amendment, are hereby ratified and confirmed in all
respects. Any reference to the US Credit Agreement in any Loan
Document shall be deemed to be a reference to the Original Agreement
as hereby amended.  The execution, delivery and effectiveness of
this Amendment shall not, except as expressly provided herein,
operate as a waiver of any right, power or remedy of Lenders under
the US Credit Agreement, the US Notes, or any other US Loan Document
nor constitute a waiver of any provision of the US Credit Agreement,
the US Notes or any other US Loan Document.

       Section 6.2.   Survival of Agreements; Cumulative Nature.
All of US Borrower's various representations, warranties, covenants
and agreements herein shall survive the execution and delivery of
this Amendment and the performance hereof, including without
limitation the making or granting of the US Loans, and shall further
survive until all of the US Obligations are paid in full to each
Lender Party and all of Lender Parties' obligations to US Borrower
are terminated.  All statements and agreements contained in any
certificate or instrument delivered by any Restricted Person
hereunder or under the US Credit Agreement to any Lender Party shall
be deemed representations and warranties by US Borrower or
agreements and covenants of US Borrower under this Amendment and
under the US Credit Agreement.  The representations, warranties,
indemnities, and covenants made by Restricted Persons in the US Loan
Documents, and the rights, powers, and privileges granted to Lender
Parties in the US Loan Documents, are cumulative, and, except for
expressly specified waivers and consents, no Loan Document shall be
construed in the context of another to diminish, nullify, or
otherwise reduce the benefit to any Lender Party of any such
representation, warranty, indemnity, covenant, right, power or
privilege.  In particular and without limitation, no exception set
out in this Amendment to any representation, warranty, indemnity, or
covenant herein contained shall apply to any similar representation,
warranty, indemnity, or covenant contained in any other Loan
Document, and each such similar representation, warranty, indemnity,
or covenant shall be subject only to those exceptions which are
expressly made applicable to it by the terms of the various US Loan
Documents.

       Section 6.3.   Loan Documents.  This Amendment is a US Loan
Document, and all provisions in the US Credit Agreement pertaining
to US Loan Documents apply hereto.

       Section 6.4.   Governing Law.  This Amendment shall be
governed by and construed in accordance the laws of the State of
Utah and any applicable laws of the United States of America in all
respects, including construction, validity and performance.  US
Borrower hereby irrevocably submits itself and each other Restricted
Person to the non-exclusive jurisdiction of the state and federal
courts sitting in the State of Utah and agrees and consents that
service of process may be made upon it or any Restricted Person in
any legal proceeding relating to the Amendment Documents or the
Obligations by any means allowed under Utah or federal law.

       Section 6.5.   Counterparts.  This Amendment may be
separately executed in any number of counterparts and by the
different parties hereto in separate counterparts, each of which
when so executed shall be deemed to constitute one and the same
Amendment.  This Amendment may be validly executed and delivered by
facsimile or other electronic transmission.

       THIS AMENDMENT AND THE OTHER US LOAN DOCUMENTS REPRESENT THE
FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF
THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

   [The remainder of this page has been intentionally left blank.]

       IN WITNESS WHEREOF, this Amendment is executed as of the date
first above written.

                              QUESTAR MARKET RESOURCES, INC.
                              US Borrower

                              By:
                                     G. L. Nordloh
                                     President and Chief Executive
                                     Officer

                                     Mailing Address:
                                     P.O. Box 45433
                                     Salt Lake City, Utah  84145
                                     Attention:  Martin H. Craven

                                     Street Address:
                                     180 East 100 South
                                     Salt Lake City, Utah  84111
                                     Telephone: (801) 324-5497
                                     Fax: (801) 324-5483

                                      BANK OF AMERICA, N.A.
                                      Administrative Agent, US LC Issuer
                                       and Lender

                                      By:
                                      Name:
                                      Title:

                                      TORONTO DOMINION (TEXAS), INC.
                                      Lender

                                      By:
                                      Name:
                                      Title:

                                      BANK OF MONTREAL
                                      Lender

                                      By:
                                      James Whitmore
                                      Director

                                      BANK ONE, N.A., f/k/a THE FIRST
                                      NATIONAL BANK OF CHICAGO
                                      Lender

                                      By:
                                      Name:
                                      Title:

                                      FIRST SECURITY BANK, N.A.
                                      Lender

                                      By:
                                      Name:
                                      Title:

                                      MELLON BANK, N.A.
                                      Lender

                                       By:
                                       Roger E. Howard
                                       Vice President

                                       U.S. BANK NATIONAL ASSOCIATION
                                       Lender

                                       By:
                                       Mark E. Thompson
                                       Vice President

                                       THE BANK OF TOKYO-MITSUBISHI, LTD.,
                                       HOUSTON AGENCY
                                       Lender

                                       By:
                                       Name:
                                       Title:

                                       THE INDUSTRIAL BANK OF JAPAN, LIMITED
                                       Lender

                                       By:
                                       Name:
                                       Title:

                                       THE SUMITOMO BANK, LIMITED
                                       Lender

                                       By:
                                       Name:
                                       Title:

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