Document:

DEUTSCHE ALT-A SECURITIES, INC.

                                    Depositor

                                       and

                WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION

                  Master Servicer and Securities Administrator

                                       and

                                  HSBC BANK USA

                                     Trustee

                              _____________________

                         POOLING AND SERVICING AGREEMENT

                          Dated as of September 1, 2003

                              _____________________

                       Mortgage Pass-Through Certificates

                                 Series 2003-2XS

<PAGE>

                                TABLE OF CONTENTS

                                    ARTICLE I
                                   DEFINITIONS

Section 1.1    Definitions.....................................................5

Section 1.2    Allocation of Certain Interest Shortfall.......................41

                                   ARTICLE II
           CONVEYANCE OF TRUST FUND; ORIGINAL ISSUANCE OF CERTIFICATES

Section 2.1    Conveyance of Trust Fund.......................................43

Section 2.2    Acceptance by Trustee..........................................43

Section 2.3    Repurchase or Substitution of Loans............................43

Section 2.4    Authentication and Delivery of Certificates; Designation
               of Certificates as REMIC Regular and Residual Interests........46

Section 2.5    Representations and Warranties of the Master Servicer..........46

Section 2.6    Establishment of the Trust.....................................48

                                   ARTICLE III
               ADMINISTRATION AND SERVICING OF THE LOANS; ACCOUNTS

Section 3.1    Master Servicer................................................49

Section 3.2    REMIC-Related Covenants........................................50

Section 3.3    Monitoring of Servicers........................................50

Section 3.4    Fidelity Bond..................................................51

Section 3.5    Power to Act; Procedures.......................................51

Section 3.6    Due-on-Sale Clauses; Assumption Agreements.....................52

Section 3.7    Release of Mortgage Files......................................52

Section 3.8    Documents, Records and Funds in Possession of Master
               Servicer To Be Held for Trustee................................53

Section 3.9    Standard Hazard Insurance and Flood Insurance Policies.........54

Section 3.10   Presentment of Claims and Collection of Proceeds...............55

Section 3.11   Maintenance of the Primary Mortgage Insurance Policies.........55

Section 3.12   Trustee to Retain Possession of Certain Insurance
               Policies and Documents.........................................55

Section 3.13   Realization Upon Defaulted Loans...............................56

Section 3.14   Compensation for the Master Servicer...........................56

Section 3.15   REO Property...................................................56

Section 3.16   Annual Officer's Certificate as to Compliance..................57

Section 3.17   Annual Independent Accountant's Servicing Report...............58

Section 3.18   Reports Filed with Securities and Exchange Commission..........58

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Section 3.19   UCC............................................................59

Section 3.20   Obligation of the Master Servicer in respect of
               Compensating Interest..........................................59

Section 3.21   Reserved.......................................................59

Section 3.22   Protected Accounts.............................................59

Section 3.23   Distribution Account...........................................60

Section 3.24   Permitted Withdrawals and Transfers from the
               Distribution Account...........................................62

Section 3.25   Reserve Fund...................................................63

Section 3.26   Prepayment Penalty Verification................................64

                                   ARTICLE IV
        PAYMENTS TO CERTIFICATEHOLDERS; ADVANCES; STATEMENTS AND REPORTS

Section 4.1    Distributions to Certificateholders............................66

Section 4.2    Allocation of Realized Losses..................................70

Section 4.3    Statements to Certificateholders...............................72

Section 4.4    Advances.......................................................75

Section 4.5    Compliance with Withholding Requirements.......................75

                                    ARTICLE V
                                THE CERTIFICATES

Section 5.1    The Certificates...............................................79

Section 5.2    Certificates Issuable in Classes; Distributions of Principal
               and Interest; Authorized Denominations.........................79

Section 5.3    Registration of Transfer and Exchange of Certificates..........79

Section 5.4    Mutilated, Destroyed, Lost or Stolen Certificates..............85

Section 5.5    Persons Deemed Owners..........................................85

                                   ARTICLE VI
           THE DEPOSITOR, MASTER SERVICER AND THE CREDIT RISK MANAGER

Section 6.1    Liability of the Depositor and the Master Servicer.............86

Section 6.2    Merger or Consolidation of the Depositor or the Master
               Servicer.......................................................86

Section 6.3    Limitation on Liability of the Depositor, the Master
               Servicer, the Servicers, the Securities Administrator
               and Others.....................................................86

Section 6.4    Limitation on Resignation of the Master Servicer...............87

Section 6.5    Assignment of Master Servicing.................................87

Section 6.6    Rights of the Depositor in Respect of the Master Servicer......88

Section 6.7    Duties of the Credit Risk Manager..............................89

Section 6.8    Limitation Upon Liability of the Credit Risk Manager...........89

Section 6.9    Removal of the Credit Risk Manager.............................89

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<PAGE>

                                   ARTICLE VII
                                     DEFAULT

Section 7.1    Master Servicer Events of Default..............................90

Section 7.2    Trustee to Act; Appointment of Successor.......................91

Section 7.3    Notification to Certificateholders.............................92

Section 7.4    Waiver of Master Servicer Events of Default....................92

                                  ARTICLE VIII
             CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

Section 8.1    Duties of Trustee and Securities Administrator.................94

Section 8.2    Certain Matters Affecting Trustee and Securities
               Administrator..................................................95

Section 8.3    Trustee and Securities Administrator not Liable for
               Certificates or Loans..........................................96

Section 8.4    Trustee and Securities Administrator May Own Certificates......97

Section 8.5    Fees and Expenses of Trustee and Securities Administrator......97

Section 8.6    Eligibility Requirements for Trustee and Securities
               Administrator..................................................98

Section 8.7    Resignation and Removal of Trustee and Securities
               Administrator..................................................98

Section 8.8    Successor Trustee or Securities Administrator..................99

Section 8.9    Merger or Consolidation of Trustee or Securities
               Administrator.................................................100

Section 8.10   Appointment of Co-Trustee or Separate Trustee.................100

Section 8.11   Appointment of Office or Agency...............................101

Section 8.12   Representations and Warranties of the Trustee.................101

                                   ARTICLE IX
                                   TERMINATION

Section 9.1    Termination Upon Purchase or Liquidation of All Loans.........103

Section 9.2    Additional Termination Requirements...........................105

                                    ARTICLE X
                                REMIC PROVISIONS

Section 10.1   REMIC Administration..........................................106

Section 10.2   Prohibited Transactions and Activities........................108

Section 10.3   Indemnification...............................................109

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

Section 11.1   Amendment.....................................................110

Section 11.2   Recordation of Agreement; Counterparts........................111

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Section 11.3   Limitation on Rights of Certificateholders....................111

Section 11.4   Governing Law.................................................112

Section 11.5   Notices.......................................................112

Section 11.6   Severability of Provisions....................................113

Section 11.7   Notice to Rating Agencies.....................................113

Section 11.8   Article and Section References................................114

Section 11.9   Grant of Security Interest....................................114

                                      -iv-

<PAGE>

                                    EXHIBITS

Exhibit A-1    -   Forms of Class A-[1][2][3][4][5][6] Certificates
Exhibit A-2    -   Forms of Class A-IO Certificates
Exhibit A-3    -   Forms of Class [M-1][M-2][M-3] Certificates
Exhibit A-4    -   Forms of Class CE Certificates
Exhibit A-5    -   Forms of Class P Certificates
Exhibit A-6    -   Forms of Class R Certificates
Exhibit  B     -   [Reserved]
Exhibit C      -   Form of Transfer Affidavit
Exhibit D      -   Form of Transferor Certificate
Exhibit E      -   Form of Investment Letter (Non-Rule 144A)
Exhibit F      -   Form of Rule 144A Investment Letter
Exhibit G      -   Form of Benefit Plan Affidavit
Schedule One   -   Loan Schedule
Schedule Two   -   Prepayment Change Schedule

                                      -v-

<PAGE>

         This Pooling and Servicing Agreement, dated and effective as of
September 1, 2003 (this "Agreement"), is executed by and among Deutsche Alt-A
Securities, Inc., as depositor (the "Depositor"), Wells Fargo Bank Minnesota,
National Association, as master servicer (the "Master Servicer") and securities
administrator (the "Securities Administrator"), and HSBC Bank USA, as trustee
(the "Trustee"). Capitalized terms used in this Agreement and not otherwise
defined have the meanings ascribed to such terms in Article I hereof.

                              PRELIMINARY STATEMENT

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

         The Certificates issued hereunder, other than the Class CE, Class P and
Class R Certificates, have been offered for sale pursuant to a Prospectus, dated
August 25, 2003, and a Prospectus Supplement, dated September 29, 2003 of the
Depositor (together, the "Prospectus"). The Trust Fund created hereunder is
intended to be the "Trust" as described in the Prospectus and the Certificates
are intended to be the "Certificates" described therein.

         As provided herein, the Trustee shall elect to treat the segregated
pool of assets consisting of the Loans and other related assets (other than the
Reserve Fund) in the Trust Fund subject to this Agreement as multiple REMICs for
federal income tax purposes, and such segregated pool of assets shall be
designated as "REMIC I." Component R-1 of the Class R Certificate shall
represent the sole class of "residual interests" in REMIC I for purposes of the
REMIC Provisions under federal income tax law. The following table irrevocably
sets forth the designation, the Uncertificated REMIC I Pass-Through Rate, the
initial Uncertificated Principal Balance, and solely for purposes of satisfying
Treasury regulation Section 1.860G-1(a)(4)(iii), the "latest possible maturity
date" for each of the Uncertificated REMIC I Regular Interests. None of the
Uncertificated REMIC I Regular Interests will be certificated.

                                      -1-
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                   Initial
                Uncertificated    Uncertified REMIC 1    Assumed Final Maturity
Designation   Principal Balance    Pass-Through Rate             Date(1)
-----------   -----------------   -------------------    ----------------------
   LTI-1       $254,878,513.72        Variable(2)          September 25, 2033
 LTI-IO-A        $7,345,700.00        Variable(2)          September 25, 2033
 LTI-IO-B        $7,345,600.00        Variable(2)          September 25, 2033
 LTI-IO-C        $7,345,700.00        Variable(2)          September 25, 2033
 LTI-IO-D          $895,100.00        Variable(2)          September 25, 2033
 LTI-IO-E      $ 16,000,000.00        Variable(2)          September 25, 2033
   LTI-P               $100.00        Variable(2)          September 25, 2033
_______________

(1)      Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date in the month following the maturity
         date for the Loan with the latest maturity date has been designated as
         the "latest possible maturity date" for each Class of Certificates that
         represents one or more of the "regular interests" in REMIC I.

(2)      Calculated in accordance with the definition of "Uncertified REMIC I
         Pass-Through Rate" herein.

         As provided herein, the Trustee shall elect to treat the segregated
pool of assets consisting of the REMIC I Regular Interests as a REMIC for
federal income tax purposes, and such segregated pool of assets shall be
designated as "REMIC II". Component R-2 of the Class R Certificate shall
represent the sole class of "residual interests" in REMIC II for purposes of the
REMIC Provisions under federal income tax law. The following table irrevocably
sets forth the designations, the Uncertificated REMIC II Pass-Through Rate, the
initial Uncertificated Principal Balance, and solely for purposes of satisfying
Treasury regulation Section 1.860G-1(a)(4)(iii), the "latest possible maturity
date" for each of the Uncertificated REMIC II Regular Interests. None of the
Uncertificated REMIC II Regular Interests will be certificated.

                                      -2-
<PAGE>

                     Initial
                   Uncertified      Uncertificated REMIC II    Assumed Final
 Designation    Principal Balance      Pass-Through Rate      Maturity Date(1)
--------------  ------------------  -----------------------  -------------------
   LTII-AA       $287,934,401.45          Variable(2)         September 25, 2033
   LTII-A1         $1,042,000.00          Variable(2)         September 25, 2033
   LTII-A2           $274,120.00          Variable(2)         September 25, 2033
   LTII-A3           $544,170.00          Variable(2)         September 25, 2033
   LTII-A4           $366,260.00          Variable(2)         September 25, 2033
   LTII-A5           $260,540.00          Variable(2)         September 25, 2033
   LTII-A6           $293,810.00          Variable(2)         September 25, 2033
   LTII-M1            $58,760.00          Variable(2)         September 25, 2033
   LTII-M2            $58,760.00          Variable(2)         September 25, 2033
   LTII-M3            $29,380.00          Variable(2)         September 25, 2033
   LTII-ZZ         $2,948,412.27          Variable(2)         September 25, 2033
   LTII-IO              N/A(4)              4.50%(3)          September 25, 2033
   LTII-P                $100             Variable(2)         September 25, 2033

         ___________________

(1)      Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date in the month following the maturity
         date for the Loan with the latest maturity date has been designated as
         the "latest possible maturity date" for each REMIC II Regular Interest.
(2)      Calculated in accordance with the definition of "Uncertificated REMIC
         II Pass-Through Rate" herein.
(3)      The REMIC II Regular Interest LTII-IO will represent 5 REMIC regular
         interest components, REMIC II Regular Interest Component IO-1 through
         Component IO-5. Each component will have (a) a rate of 4.50% per annum
         from the Closing Date to but not including the Rate Change Date for
         such component and thereafter a rate of 0.00% and (b) an uncertificated
         notional amount equal to the Uncertificated Principal Balance of the
         REMIC I Regular Interest for which such component is the Corresponding
         Interest.
(4)      REMIC II Regular Interest LTII-IO will not have an Uncertificated
         Principal Balance, but will accrue interest on its uncertificated
         notional amount calculated in accordance with the definition of
         "Uncertificated Notional Amount" herein.

         As provided herein, the Trustee shall elect to treat the segregated
pool of assets consisting of the REMIC II Regular Interests as a REMIC for
federal income tax purposes, and such segregated pool of assets shall be
designated as "REMIC III". Component R-3 of the Class R Certificate shall
represent the sole class of "residual interests" in REMIC III for purposes of
the REMIC Provisions under federal income tax law. The following table
irrevocably sets forth the designations, the Remittance Rate and initial Class
Principal Balance for each Class of Certificates which, together with the Class
R-3 Component, constitute the entire beneficial interests in REMIC III.
Determined solely for purposes of satisfying Treasury regulation section
1.860G-1(a)(4)(iii), the "latest possible maturity date" for each Class of
Certificates shall be the first Distribution Date that is two years after the
end of the remaining amortization schedule of the Loan in the Mortgage Pool that
has, as of the Closing Date, the longest remaining amortization schedule,
irrespective of its scheduled maturity:

                                      -3-
<PAGE>

                         Initial
                       Certificate                             Assumed Final
Class Designation    Principal Balance   Pass-Through Rate    Maturity Date/1
-----------------    -----------------   -----------------    ---------------
   Class A-1          $104,202,000.00         1.80%(2)       September 25, 2033
   Class A-2           $27,412,000.00         3.03%(2)       September 25, 2033
   Class A-3           $54,417,000.00         3.76%(2)       September 25, 2033
   Class A-4           $36,626,000.00         5.07%(2)       September 25, 2033
   Class A-5           $26,054,000.00         5.90%(2)       September 25, 2033
   Class A-6           $29,381,000.00         4.97%(2)       September 25, 2033
   Class A-IO                     N/A(3)      4.50%          September 25, 2033
   Class M-1            $5,876,000.00         5.64%(2)       September 25, 2033
   Class M-2            $5,876,000.00         5.90%(2)       September 25, 2033
   Class M-3            $2,938,000.00         5.90%(2)       September 25, 2033
    Class CE            $1,028,613.72(4)        (4)          September 25, 2033
    Class P                   $100.00          N/A(5)        September 25, 2033
___________________
(1)      Solely for purposes of Section 1.860G-1(a)(4)(iii) of the Treasury
         regulations, the Distribution Date in the month following the maturity
         date for the Loan with the latest maturity date has been designated as
         the "latest possible maturity date" for each Class of Certificates.
(2)      Subject to a rate cap as described herein.
(3)      The Class A-IO Certificates will accrue interest at their Pass-Through
         Rate on the Notional Amount of the Class A-IO Certificates calculated
         in accordance with the definition of "Notional Amount" herein. The
         Class A-IO Certificates will not be entitled to distributions in
         respect of principal. For federal income tax purposes, the Class A-IO
         Certificates will not have a Notional Amount, but will be entitled to
         100% of amounts distributed on REMIC II Regular Interest LTII-IO.
(4)      The Class CE Certificates will not accrue interest on their Certificate
         Principal Balance, but will accrue interest at their Pass-Through Rate
         on the Notional Amount of the Class CE Certificates outstanding from
         time to time which shall equal the aggregate of the Uncertificated
         Principal Balances of the REMIC II Regular Interests (other than REMIC
         II Regular Interest LTII-P and REMIC II Regular Interest LTII-IO).
(5)      The Class P Certificates are not entitled to distributions in respect
         of interest.

___________________________________
     1    The Distribution date in the month after the maturity date for the
          latest maturing Loan

                                      -4-
<PAGE>

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

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

                                   ARTICLE I
                                  DEFINITIONS

         Section 1.1 DEFINITIONS.

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

         ACCEPTED MASTER SERVICING PRACTICES: With respect to any Loan, as
applicable, those customary mortgage servicing practices of prudent mortgage
servicing institutions that master service mortgage loans of the same type and
quality as such Loan in the jurisdiction where the related Mortgaged Property is
located, to the extent applicable to the Master Servicer (except in its capacity
as successor to a Servicer).

         ACCOUNT: The Distribution Account and any Protected Account as the
context may require.

         ADVANCE: Either (i) a Monthly Advance made by a Servicer as such term
is defined in and pursuant to the related Servicing Agreement or (ii) an advance
made by the Master Servicer pursuant to Section 4.4.

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

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

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

         ANNIVERSARY: Each anniversary of the Cut-Off Date.

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

         ASSIGNMENT: An assignment of the Mortgage, notice of transfer or
equivalent instrument, in recordable form, sufficient under the laws of the
jurisdiction where the related Mortgaged

                                      -5-
<PAGE>

Property is located to reflect of record the sale and assignment of the Loan to
the Trustee, which assignment, notice of transfer or equivalent instrument may,
if permitted by law, be in the form of one or more blanket assignments covering
Mortgages secured by Mortgaged Properties located in the same county.

         ASSIGNMENT AGREEMENTS: Shall mean (i) the Assignment, Assumption and
Recognition Agreement, dated as of September 30, 2003, among the Seller, the
Depositor and GMAC, pursuant to which the GMAC Servicing Agreement was assigned
to the Depositor and (ii) the Assignment, Assumption and Recognition Agreement,
dated as of September 30, 2003, among the Seller, the Depositor and Greenpoint
pursuant to which the Greenpoint Servicing Agreement was assigned to the
Depositor.

         AUTHORIZED DENOMINATION: With respect to the Class A Certificates and
the Class M Certificates, minimum initial Certificate Principal Balances of
$25,000 and integral multiples of $1.00 in excess thereof. With respect to the
Class P Certificates, minimum initial Certificate Principal Balances of $20 and
integral multiples thereof. With respect to the Class CE Certificates, minimum
initial Certificate Principal Balances of $10,000 and integral multiples of
$1.00 in excess thereof.

         AVAILABLE DISTRIBUTION AMOUNT: With respect to a Distribution Date, the
sum of the following amounts:

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

                  (a) all Prepaid Monthly Payments;

                  (b) all Curtailments received after the applicable Prepayment
Period;

                  (c) all Payoffs received after the applicable Prepayment
Period;

                  (d) Insurance Proceeds and Liquidation Proceeds on such Loans
received after the applicable Prepayment Period;

                  (e) all amounts which are due and reimbursable to the related
Servicer pursuant to the terms of the related Servicing Agreement or to the
Master Servicer, the Securities Administrator, the Trustee or the Custodian
pursuant to the terms of this Agreement;

                  (f) the Servicing Fee, the Master Servicing Fee and the Credit
Risk Management Fee for each such Loan for such Distribution Date;

                  (g) all investment earnings, if any, on amounts on deposit in
the Distribution Account and each Protected Account;

                  (h) any premiums payable in connection with lender paid
primary mortgage insurance policies; and

                                      -6-
<PAGE>

                  (i) the amount of any Prepayment Charges collected by the
related Servicer in connection with the Principal Prepayment of any of the
Loans.

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

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

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

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

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

         BOOK-ENTRY CERTIFICATES: The Class A Certificates and the Class M
Certificates beneficial ownership and transfers of which shall be made through
book entries as described in Section 5.1 and Section 5.3.

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

         CERTIFICATE: Any one of the Certificates issued pursuant to this
Agreement, executed and authenticated by or on behalf of the Securities
Administrator hereunder in substantially one of the forms set forth in Exhibits
A-1, A-2, A-3, A-4, A-5 and A-6 hereto.

         CERTIFICATE PRINCIPAL BALANCE: The Certificate Principal Balance with
respect to a Senior Certificate (other than the Class A-IO Certificates, which
have no Certificate Principal Balance), Class M Certificate or Class P
Certificate outstanding at any time, represents the then maximum amount that the
holder of such certificate is entitled to receive as distributions allocable to
principal from the cash flow on the Loans and the other assets in the Trust
Fund. The Certificate Principal Balance of a Senior Certificate, Class M
Certificate or a Class P Certificate as of any date of determination is equal to
the initial Certificate Principal Balance of such Certificate reduced by the
aggregate of (i) all amounts allocable to principal previously distributed with

                                      -7-
<PAGE>

respect to that Certificate and (ii) with respect to the Class M Certificates,
any reductions in the Certificate Principal Balance of such certificate deemed
to have occurred in connection with allocations of Realized Losses, if any. The
Certificate Principal Balance of the Class CE Certificates as of any date of
determination is equal to the excess, if any, of (i) the then aggregate
Principal Balance of the Loans over (ii) the then aggregate Certificate
Principal Balance of the Senior Certificates, the Class M Certificates and the
Class P Certificates. The initial Certificate Principal Balance of each Class of
Certificates is set forth in the Preliminary Statement hereto.

         CERTIFICATE REGISTER: The register maintained pursuant to Section 5.3.

         CERTIFICATEHOLDER OR HOLDER: The person in whose name a Certificate is
registered in the Certificate Register, except that, solely for the purposes of
giving any consent pursuant to this Agreement, any Certificate registered in the
name of the Depositor, the Master Servicer, the Securities Administrator, the
Trustee or any Affiliate thereof shall be deemed not to be outstanding and the
Percentage Interest evidenced thereby shall not be taken into account in
determining whether the requisite percentage of Percentage Interests necessary
to effect any such consent has been obtained. The Trustee or the Securities
Administrator may conclusively rely upon a certificate of the Depositor, the
Seller or the Master Servicer in determining whether a Certificate is held by an
Affiliate thereof. All references herein to "Holders" or "Certificateholders"
shall reflect the rights of Certificate Owners as they may indirectly exercise
such rights through the Depository and participating members thereof, except as
otherwise specified herein; provided, however, that the Trustee or the
Securities Administrator shall be required to recognize as a "Holder" or
"Certificateholder" only the Person in whose name a Certificate is registered in
the Certificate Register.

         CERTIFICATE OWNER: With respect to a Book-Entry Certificate, the Person
who is the beneficial owner of such Certificate as reflected on the books of the
Depository or on the books of a Depository Participant or on the books of an
Indirect Depository Participant.

         CLASS: All Certificates having the same priority and rights to payments
from the Available Distribution Amount, designated as a separate Class, as set
forth in the forms of Certificates attached hereto as Exhibits A-1, A-2, A-3,
A-4, A-5 and A-6, as applicable.

         CLASS A CERTIFICATES: The Class A-1, A-2, A-3, A-4, A-5, A-6 and A-IO
Certificates, collectively, and designated as such on the face thereof in
substantially the forms attached hereto as Exhibits A-1 or A-2, as applicable.

         CLASS A-6 LOCKOUT DISTRIBUTION AMOUNT: For any Distribution Date, the
product of (i) the Class A-6 Lockout Distribution Percentage for such
Distribution Date and (ii) the Class A-6 Pro Rata Distribution Amount for such
Distribution Date. In no event shall the Class A-6 Lockout Distribution Amount
for a Distribution Date exceed the Senior Principal Distribution Amount for that
Distribution Date.

         CLASS A-6 LOCKOUT DISTRIBUTION PERCENTAGE: For each Distribution Date,
the applicable percentage set forth below:

                                      -8-
<PAGE>

                   DISTRIBUTION DATES                     LOCKOUT PERCENTAGE
                   ------------------                     ------------------

  October 2003 through and including September 2006                0%
  October 2006 through and including September 2008               45%
  October 2008 through and including September 2009               80%
  October 2009 through and including September 2010              100%
  October 2010 and thereafter                                    300%

         CLASS A-6 PRO RATA DISTRIBUTION AMOUNT: For any Distribution Date, an
amount equal to the product of (x) a fraction, the numerator of which is the
Certificate Principal Balance of the Class A-6 Certificates immediately prior to
that Distribution Date and the denominator of which is the aggregate Certificate
Principal Balance of the Class A Certificates, immediately prior to that
Distribution Date and (y) the Senior Principal Distribution Amount for that
Distribution Date.

         CLASS M CERTIFICATES: The Class M-1, Class M-2 and Class M-3
Certificates, collectively, and designated as such on the face thereof in
substantially the form attached hereto as Exhibit A-3.

         CLASS M-1 PRINCIPAL DISTRIBUTION AMOUNT: will be, with respect to any
Distribution Date (i) prior to the Stepdown Date or on or after the Stepdown
Date if a Trigger Event is in effect for that Distribution Date, the remaining
Principal Distribution Amount for that Distribution Date after distribution of
the Senior Principal Distribution Amount or (ii) on or after the Stepdown Date
if a Trigger Event is not in effect for that Distribution Date, the lesser of:

         o        the remaining Principal Distribution Amount for that
                  Distribution Date after distribution of the Senior Principal
                  Distribution Amount; and

         o        the excess of (A) the aggregate Certificate Principal Balance
                  of the Class M-1 Certificates immediately prior to that
                  Distribution Date over (B) the positive difference between (i)
                  the aggregate Principal Balance of the Loans as of the last
                  day of the related Due Period (after reduction for Realized
                  Losses incurred during the related Prepayment Period) and (ii)
                  the sum of (x) the aggregate Certificate Principal Balance of
                  the Class A Certificates (after taking into account the
                  payment of the Senior Principal Distribution Amount for such
                  Distribution Date) and (y) the product of (a) the aggregate
                  Principal Balance of the Loans as of the last day of the
                  related Due Period (after reduction for Realized Losses
                  incurred during the related Prepayment Period) and (b) the sum
                  of 6.00% and the Required Overcollateralization Percentage.

         Class M-2 Principal Distribution Amount: will be, with respect to any
Distribution Date (i) prior to the Stepdown Date or on or after the Stepdown
Date if a Trigger Event is in effect for that Distribution Date, the remaining
Principal Distribution Amount for that Distribution Date

                                      -9-
<PAGE>

after distribution of the Senior Principal Distribution Amount and the Class M-1
Principal Distribution Amount or (ii) on or after the Stepdown Date if a Trigger
Event is not in effect for that Distribution Date, the lesser of:

         o        the remaining Principal Distribution Amount for that
                  Distribution Date after distribution of the Senior Principal
                  Distribution Amount and the Class M-1 Principal Distribution
                  Amount; and

         o        the excess of (A) the aggregate Certificate Principal Balance
                  of the Class M-2 Certificates immediately prior to that
                  Distribution Date over (B) the positive difference between (i)
                  the aggregate Principal Balance of the Loans as of the last
                  day of the related Due Period (after reduction for Realized
                  Losses incurred during the related Prepayment Period) and (ii)
                  the sum of (x) the aggregate Certificate Principal Balance of
                  the Class A Certificates and the Class M-1 Certificates (after
                  taking into account the payment of the Senior Principal
                  Distribution Amount and the Class M-1 Principal Distribution
                  Amount for such Distribution Date) and (y) the product of (a)
                  the aggregate Principal Balance of the Loans as of the last
                  day of the related Due Period (after reduction for Realized
                  Losses incurred during the related Prepayment Period) and (b)
                  the sum of 2.00% and the Required Overcollateralization
                  Percentage.

         CLASS M-3 PRINCIPAL DISTRIBUTION AMOUNT: will be, with respect to any
Distribution Date (i) prior to the Stepdown Date or on or after the Stepdown
Date if a Trigger Event is in effect for that Distribution Date, the remaining
Principal Distribution Amount for that Distribution Date after distribution of
the Senior Principal Distribution Amount, the Class M-1 Principal Distribution
Amount and the Class M-2 Principal Distribution Amount or (ii) on or after the
Stepdown Date if a Trigger Event is not in effect for that Distribution Date,
the lesser of:

         o        the remaining Principal Distribution Amount for that
                  Distribution Date after distribution of the Senior Principal
                  Distribution Amount, the Class M-1 Principal Distribution
                  Amount and the Class M-2 Principal Distribution Amount; and

         o        the excess of (A) the aggregate Certificate Principal Balance
                  of the Class M-3 Certificates immediately prior to that
                  Distribution Date over (B) the positive difference between (i)
                  the aggregate Principal Balance of the Loans as of the last
                  day of the related Due Period (after reduction for Realized
                  Losses incurred during the related Prepayment Period) and (ii)
                  the sum of (x) the aggregate Certificate Principal Balance of
                  the Class A, Class M-1 and Class M-2 Certificates (after
                  taking into account the payment of the Senior Principal
                  Distribution Amount, the Class M-1 Distribution Amount and the
                  Class M-2 Distribution Amount for such Distribution Date) and
                  (y) the product of (a) the aggregate Principal Balance of the
                  Loans as of the last day of the related Due Period (after
                  reduction for Realized Losses incurred during the related
                  Prepayment Period) and (b) the Required Overcollateralization
                  Percentage.

         CLASS PRINCIPAL BALANCE: For any Class of Certificates (other than the
Interest Only Certificates), the applicable initial Class Principal Balance set
forth in the Preliminary Statement

                                      -10-
<PAGE>

hereto, corresponding to the rights of such Class in payments of principal due
to be passed through to Certificateholders from principal payments on the Loans,
as reduced from time to time by (x) distributions allocable to principal made
thereon and (y) with respect to the Class M Certificates and Class CE
Certificates the portion of Realized Losses allocated thereto pursuant to
Section 4.2 with respect to a given Distribution Date. For any Distribution
Date, the reduction of the Class Principal Balance of any Class of Certificates
pursuant to Section 4.2 shall be deemed effective prior to the determination and
distribution of principal on such Class pursuant to Section 4.1(a). The Class
Principal Balance for the Class A-1 Certificates shall be referred to as the
"Class A-1 Principal Balance", the Class Principal Balance for the Class A-2
Certificates shall be referred to as the "Class A-2 Principal Balance" and so
on. The Class Principal Balances of the Interest Only Certificates shall be
zero.

         CLASS R CERTIFICATE: The Certificate designated as "Class R" on the
face thereof in substantially the form attached hereto as Exhibit A-6, which has
been designated as the sole class of "residual interests" in REMIC I, REMIC II
and REMIC III, respectively, pursuant to Section 2.4.

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

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

         CLASS R-1 INTEREST: The uncertificated residual interest in REMIC I.

         CLASS R-2 INTEREST: The uncertificated residual interest in REMIC II.

         CLASS R-3 INTEREST: The uncertificated residual interest in REMIC III.

         CLOSING DATE: September 30, 2003.

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

         COMPENSATING INTEREST: For any Distribution Date, (i) with respect to
each Servicer, an amount equal to the lesser of (a) the aggregate Prepayment
Interest Shortfalls and Curtailment Shortfalls for such Loans for such
Distribution Date and (b) the Servicing Fee payable to such Servicer, for such
Distribution Date and (ii) with respect to the Master Servicer, the amount
described in Section 3.20 for such Distribution Date.

         CORPORATE TRUST OFFICE: The principal corporate trust office of the
Trustee or the Securities Administrator, as the case may be, at which at any
particular time its corporate trust business in connection with this Agreement
shall be administered, which office at the date of the execution of this
instrument is located at (i) with respect to the Trustee, HSBC Bank USA, 452
Fifth Avenue, New York, New York 10018, or at such other address as the Trustee
may designate from time to time by notice to the Certificateholders, the
Depositor, the Master Servicer and the Securities Administrator, or (ii) with
respect to the Securities Administrator, (A) for Certificate transfer and
surrender purposes, Wells Fargo Bank Minnesota, National Association, Sixth and
Marquette, Minneapolis, Minnesota 55479, Attention: DBALT 2003-2XS

                                      -11-
<PAGE>

and (B) for all other purposes, Wells Fargo Bank Minnesota, National
Association, 9062 Old Annapolis Road, Columbia, Maryland 21045, Attention: DBALT
2003-2XS, or at such other address as the Securities Administrator may designate
from time to time by notice to the Certificateholders, the Depositor, the Master
Servicer and the Trustee.

         CORRESPONDING CERTIFICATE: With respect to:

                  (i)    REMIC II Regular Interest LTII-A1, the Class A-1
                         Certificates,

                  (ii)   REMIC II Regular Interest LTII-A2, the Class A-2
                         Certificates,

                  (iii)  REMIC II Regular Interest LTII-A3, the Class A-3
                         Certificates,

                  (iv)   REMIC II Regular Interest LTII-A4, the Class A-4
                         Certificates,

                  (v)    REMIC II Regular Interest LTII-A5, the Class A-5
                         Certificates,

                  (vi)   REMIC II Regular Interest LTII-A6, the Class A-6
                         Certificates,

                  (vii)  REMIC II Regular Interest LTII-M1 the Class M-1
                         Certificates,

                  (viii) REMIC II Regular Interest LTII-M2, the Class M-2
                         Certificates,

                  (ix)   REMIC II Regular Interest LTII-M3, the Class M-3
                         Certificates, and

                  (x)    REMIC II Regular Interest LTII-P, the Class P
                         Certificates.

                  CORRESPONDING INTEREST: With respect to each REMIC I Regular
Interest set forth below, the corresponding REMIC II Regular Interest Component
set forth below:

                               REMIC II REGULAR
REMIC I REGULAR INTEREST       INTEREST COMPONENT            RATE CHANGE DATE
------------------------       ------------------            ----------------

        LTI-IO-A                     IO-1                       April 2004

        LTI-IO-B                     IO-2                     February 2005

        LTI-IO-C                     IO-3                       April 2005

        LTI-IO-D                     IO-4                     September 2005

        LTI-IO-E                     IO-5                       April 2006

         CREDIT ENHANCEMENT PERCENTAGE: For any Class of Certificates and any
Distribution Date, the percentage by dividing (x) the sum of (i) the aggregate
Certificate Principal Balances of the Class or Classes of Certificates
subordinate to such Certificate and (ii) the Overcollateralization Amount by (y)
the aggregate Principal Balance of the Loans, calculated after taking into
account distributions of principal on the Loans and distribution of the
Principal Distribution Amount to the Certificates then entitled to distributions
of principal on such Distribution Date.

                                      -12-
<PAGE>

         CREDIT RISK MANAGEMENT AGREEMENT OR CREDIT RISK MANAGEMENT AGREEMENTS:
Each agreement between the Credit Risk Manager and a Servicer or the Master
Servicer, regarding the loss mitigation and advisory services to be provided by
the Credit Risk Manager.

         CREDIT RISK MANAGEMENT FEE: The amount payable to the Credit Risk
Manager on each Distribution Date as compensation for all services rendered by
it in the exercise and performance of any and all powers and duties of the
Credit Risk Manager under any Credit Risk Management Agreement, which amount
shall equal one twelfth of the product of (i) the Credit Risk Management Fee
Rate multiplied by (ii) the Stated Principal Balance of the Loans and any
related REO Properties as of the first day of the related Due Period.

         CREDIT RISK MANAGEMENT FEE RATE: 0.014% per annum.

         CREDIT RISK MANAGER: The Murrayhill Company, a Colorado corporation,
and its successors and assigns.

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

         CURTAILMENT SHORTFALL: With respect to any Distribution Date and any
Curtailment received during the related Prepayment Period, an amount equal to
one month's interest on such Curtailment at the applicable Mortgage Interest
Rate on such Loan, net of the related Servicing Fee Rate.

         CUSTODIAL AGREEMENT: The Custodial Agreement dated as of September 1,
2003, among the Trustee, Wells Fargo as Custodian, GMAC and Greenpoint as such
agreement may be amended or supplemented from time to time, or any other
custodial agreement entered into after the date hereof with respect to any Loan
subject to this Agreement.

         CUSTODIAN: Either Wells Fargo or any other custodian appointed under
any custodial agreement entered into after the date of this Agreement.

         CUT-OFF DATE: September 1, 2003; except that with respect to each
Substitute Loan, the Cut-Off Date shall be the date of substitution.

         DEFINITIVE CERTIFICATES: As defined in Section 5.3.

         DELETED LOAN: A Loan replaced or to be replaced by a Substitute Loan.

         DELINQUENCY PERCENTAGE: As of the last day of the related Due Period,
the percentage equivalent of a fraction, the numerator of which is the Principal
Balance of all Loans that, as of the last day of the previous calendar month,
are 60 or more days delinquent, are in foreclosure, have been converted to REO
Properties or have been discharged by reason of bankruptcy, and the denominator
of which is the aggregate Principal Balance of the Loans and REO Properties as
of the last day of the previous calendar month.

                                      -13-
<PAGE>

         DENOMINATION: With respect to each Certificate, the amount set forth on
the face thereof as the "Initial Certificate Principal Balance of this
Certificate" or the "Initial Notional Amount of this Certificate" or, if
neither, the Percentage Interest appearing on the face thereof.

         DEPOSITOR: Deutsche Alt-A Securities, Inc., a Delaware corporation, or
its successor-in-interest.

         DEPOSITORY: The Depository Trust Company, or any successor Depository
hereafter named. The nominee of the initial Depository, for purposes of
registering those Certificates that are to be Book-Entry Certificates, is CEDE &
Co. The Depository shall at all times be a "clearing corporation" as defined in
Section 8-102(3) of the Uniform Commercial Code of the State of New York and a
Clearing Agency.

         DEPOSITORY AGREEMENT: The Letter of Representations, dated September
29, 2003 by and among the Depository, the Depositor and the Trustee.

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

         DETERMINATION DATE: With respect to each Servicer, the day of the month
set forth as the Determination Date in the related Servicing Agreement.

         DISQUALIFIED ORGANIZATION: A "disqualified organization" as defined in
Section 860E(e)(5) of the Code, and, for purposes of Article V herein, any
Person which is not a Permitted Transferee; provided, that a Disqualified
Organization does not include any Pass-Through Entity which owns or holds a
Class R Certificate and if which a Disqualified Organization, directly or
indirectly, may be a stockholder, partner or beneficiary.

         DISTRIBUTION ACCOUNT: The trust account or accounts created and
maintained by the Securities Administrator pursuant to Section 3.23 for the
benefit of the Certificateholders and designated "Wells Fargo Bank Minnesota,
National Association, as Securities Administrator, in trust for registered
holders of Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series
2003-2XS". Funds in the Distribution Account shall be held in trust for the
Certificateholders for the uses and purposes set forth in this Agreement. The
Distribution Account must be an Eligible Account.

         DISTRIBUTION ACCOUNT DEPOSIT DATE: The Business Day prior to such
Distribution Date.

         DISTRIBUTION DATE: With respect to distributions on the Certificates,
the 25th day (or, if such 25th day is not a Business Day, the Business Day
immediately succeeding such 25th day) of each month, with the first such date
being October 25, 2003. The "related Due Date" for any Distribution Date is the
Due Date immediately preceding such Distribution Date.

         DUE DATE: The first day of each calendar month, which is the day on
which the Monthly Payment for each Loan is due, exclusive of any days of grace.
The "related Due Date" for any Distribution Date is the Due Date immediately
preceding such Distribution Date.

                                      -14-
<PAGE>

         DUE PERIOD: With respect to any Distribution Date, the period
commencing on the second day of the month immediately preceding the month in
which such Distribution Date occurs and ending on the first day of the month in
which such Distribution Date occurs.

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

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

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

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

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

                  (c) demand and time deposits in or certificates of deposit of,
or bankers' acceptances issued by, any bank or trust company, savings and loan
association or savings bank, provided, that the short-term deposit ratings
and/or long-term unsecured debt obligations of such depository institution or
trust company (or in the case of the principal depository institutions in a
holding company system, the commercial paper or long-term unsecured debt
obligations of such holding company) have, in the case of commercial paper, the
highest rating available for such securities by each Rating Agency and, in the
case of long-term unsecured debt obligations, one of the two highest ratings
available for such securities by each Rating Agency, or in each case such lower
rating as will not result in the downgrading or withdrawal of the rating or
ratings then assigned to any Class of Certificates by any Rating Agency but in
no event less than the initial rating of the Senior Certificates;

                  (d) general obligations of or obligations guaranteed by any
state of the United States or the District of Columbia receiving one of the two
highest long-term debt ratings

                                      -15-
<PAGE>

available for such securities by each Rating Agency, or such lower rating as
will not result in the downgrading or withdrawal of the rating or ratings then
assigned to any Class of Certificates by any Rating Agency;

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

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

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

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

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

                  (j) if previously confirmed in writing to the Trustee and the
Securities Administrator, any other demand, money market or time deposit, or any
other obligation, security or investment, as may be acceptable to each Rating
Agency as a permitted investment of funds backing securities having ratings
equivalent to the initial rating of the Class A Certificates; and

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

                                      -16-
<PAGE>

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

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

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

         EXTRA PRINCIPAL DISTRIBUTION AMOUNT: With respect to any Distribution
Date, the lesser of (i) the Net Monthly Excess Cashflow for such Distribution
Date and (ii) the Overcollateralization Increase Amount for such Distribution
Date.

         FANNIE MAE: Fannie Mae, formerly known as the Federal National Mortgage
Association, or any successor thereto.

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

         FREDDIE MAC: The Federal Home Loan Mortgage Corporation, or any
successor thereto.

         GMAC: GMAC Mortgage Corporation, or any successor thereto.

         GMAC SERVICING AGREEMENT: The Servicing Agreement, dated as of April 1,
2003 between the Seller and GMAC.

         GREENPOINT: Greenpoint Mortgage Funding, Inc. or any successor thereto.

         GREENPOINT SERVICING AGREEMENT: Shall mean the Master Mortgage Loan
Purchase and Servicing Agreement, dated as of August 1, 2003, between the Seller
and Greenpoint, as amended by Amendment Number One, dated as of August 1, 2001,
between the Seller and Greenpoint (as modified pursuant to the related
Assignment Agreement).

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

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

         INSURANCE PROCEEDS: Proceeds of any title policy, hazard policy or
other insurance policy covering a Loan, to the extent such proceeds are not to
be applied to the restoration of the related Mortgaged Property or released to
the Mortgagor in accordance with the applicable Servicing Agreement.

                                      -17-
<PAGE>

         INTEREST ACCRUAL PERIOD: With respect to each Distribution Date and all
Classes of Certificates, other than the Class A-1 Certificates, the calendar
month preceding the month in which that Distribution Date occurs. The Interest
Accrual Period for the Class A-1 Certificates shall be (a) as to the
Distribution Date in October 2003, the period commencing on the Closing Date and
ending on the day preceding the Distribution Date in October 2003, and (b) as to
any Distribution Date after the Distribution Date in October 2003, the period
commencing on the Distribution Date in the month immediately preceding the month
in which that Distribution Date occurs and ending on the day preceding that
Distribution Date. Interest will be calculated based on a 360-day year
consisting of twelve 30-day months.

         INTEREST CARRY FORWARD AMOUNT: With respect to any Distribution Date
and any Class of Class A Certificates or Class M Certificates, the sum of (i)
the amount, if any, by which (a) the Interest Distribution Amount for such Class
of Certificates as of the immediately preceding Distribution Date exceeded (b)
the actual amount distributed on such Class of Certificates in respect of
interest on such immediately preceding Distribution Date and (ii) the amount of
any Interest Carry Forward Amount for such Class of Certificates remaining
unpaid from the previous Distribution Date, plus accrued interest on such sum
calculated at the related Pass-Through Rate for the most recently ended Interest
Accrual Period.

         INTEREST DISTRIBUTION AMOUNT: On any Distribution Date, for any Class
of Certificates, the amount of interest accrued on such Class during the related
Interest Accrual Period which shall be equal to (a) the product of (1) 1/12th of
the Pass-Through Rate for such Class and (2) the Class Principal Balance or
Notional Amount, as applicable, for such Class before giving effect to
allocations of Realized Losses in connection with such Distribution Date or
distributions to be made on such Distribution Date, REDUCED BY (b) Uncompensated
Interest Shortfalls allocated to such Class pursuant to Section 1.2 and the
interest portion of Realized Losses allocated to such Class pursuant to Section
1.2.

         INTEREST ONLY CERTIFICATES: The Class A-IO Certificates.

         INTEREST REMITTANCE AMOUNT: With respect to any Distribution Date is
that portion of the Available Distribution Amount that represents interest
received or advanced on the Loans minus account amounts payable or reimbursable
therefrom to the Trustee, the Custodian, the Securities Administrator, the
Master Servicer or the Servicers pursuant to this Agreement or the Custodial
Agreement.

         INVESTMENT WITHDRAWAL DISTRIBUTION DATE: As defined in Section 3.23(c).

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

         LIQUIDATION PROCEEDS: The amount (other than Insurance Proceeds or
amounts received in respect of the rental of any REO Property prior to REO
Disposition) received by the applicable Servicer pursuant to the related
Servicing Agreement or the Master Servicer in connection with (i) the taking of
all or a part of a Mortgaged Property by exercise of the power

                                      -18-
<PAGE>

of eminent domain or condemnation, (ii) the liquidation of a defaulted Loan
through a trustee's sale, foreclosure sale or otherwise, or (iii) the
repurchase, substitution or sale of a Loan or an REO Property pursuant to or as
contemplated by Section 2.3 or Section 9.1.

         LOAN DOCUMENTS: The documents evidencing or relating to each Loan
delivered to the Custodian under the Custodial Agreement on behalf of the
Trustee.

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

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

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

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

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

                  (v)    the original Principal Balance;

                  (vi)   the first payment date;

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

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

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

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

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

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

                  (xiii) the nature of occupancy at origination;

                  (xiv)  a code indicating whether the Loan is subject to
                         Prepayment Charge, the term of such Prepayment Charge
                         and the amount of such Prepayment Charge; and

                  (xv)   a code indicating if the Mortgage Loan is subject to
                         any LPMI Policy.

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

                                      -19-
<PAGE>

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

         LPMI FEE: Shall mean the premium payable to the insurer for each Loan
subject to an LPMI Policy as set forth in such LPMI Policy.

         LPMI POLICY: A policy of mortgage guaranty insurance issued by an
insurer meeting the requirements of Fannie Mae and Freddie Mac. The Master
Servicer is responsible for the payment of the LPMI Fee thereunder, to the
extent of amounts deposited in the Distribution Account.

         MARKER RATE: With respect to the Class CE Certificates and any
Distribution Date, a per annum rate equal to two (2) times the weighted average
of the Uncertificated REMIC II Pass-Through Rates for REMIC II Regular Interest
LTII-A1, REMIC II Regular Interest LTII-A2, REMIC II Regular Interest LTII-A3,
REMIC II Regular Interest LTII-A4, REMIC II Regular Interest LTII-A5, REMIC II
Regular Interest LTII-A6, REMIC II Regular Interest LTII-M1, REMIC II Regular
Interest LTII-M2, REMIC II Regular Interest LTII-M3 and REMIC II Regular
Interest LTII-ZZ, with the rate on REMIC II Regular Interest LTII-A1 subject to
a cap equal to the lesser of (x) 1.80% per annum and (y) the Net WAC Rate; with
the rate on REMIC II Regular Interest LTII-A2 subject to a cap equal to the
lesser of (x) 3.03% per annum and (y) the Net WAC Rate; with the rate on REMIC
II Regular Interest LTII-A3 subject to a cap equal to the lesser of (x) 3.76%
per annum and (y) the Net WAC Rate; with the rate on REMIC II Regular Interest
LTII-A4 subject to a cap equal to the lesser of (x) 5.07% per annum and (y) the
Net WAC Rate; with the rate on REMIC II Regular Interest LTII-A5 subject to a
cap equal to (A) in the case of any Distribution Date after the first possible
optional termination date, the lesser of (x) 5.90% per annum and (y) the Net WAC
Rate and (B) in the case of any Distribution Date after the Optional Termination
Date, the lesser of (x) 6.40% per annum and (y) the Net WAC Rate for the purpose
of this calculation; with the rate on REMIC II Regular Interest LTII-A6 subject
to a cap equal to (A) in the case of any Distribution Date after the first
possible optional termination date, the lesser of (x) 4.97% per annum and (y)
the Net WAC Rate and (B) in the case of any Distribution Date after the Optional
Termination Date, the lesser of (x) 5.47% per annum and (y) the Net WAC Rate for
the purpose of this calculation; with the rate on REMIC II Regular Interest
LTII-M1 subject to a cap equal to (A) in the case of any Distribution Date after
the first possible optional termination date, the lesser of (x) 5.64% per annum
and (y) the Net WAC Rate and (B) in the case of any Distribution Date after the
Optional Termination Date, the lesser of (x) 6.14% per annum and (y) the Net WAC
Rate for the purpose of this calculation; with the rate on REMIC II Regular
Interest LTII-M2 subject to a cap equal to (A) in the case of any Distribution
Date after the first possible optional termination date, the lesser of (x) 5.90%
per annum and (y) the Net WAC Rate and (B) in the case of any Distribution Date
after the Optional Termination Date, the lesser of (x) 6.40% per annum and (y)
the Net WAC Rate for the purpose of this calculation; with the rate on REMIC II
Regular Interest LTII-M3 subject to a cap equal to (A) in the case of any
Distribution Date after the first possible optional termination date, the lesser
of (x) 5.90% per annum and (y) the Net WAC Rate and (B) in the case of any
Distribution Date after the Optional Termination Date, the lesser of (x) 6.40%
per annum and (y) the Net WAC Rate for the purpose of this calculation; and with
the rate on REMIC II Regular Interest LTII-ZZ subject to a cap of zero for the
purpose of this calculation.

                                      -20-
<PAGE>

         MASTER SERVICER: As of the Closing Date, Wells Fargo Bank Minnesota,
National Association and thereafter, its respective successors in interest who
meet the qualifications of this Agreement. The Master Servicer and the
Securities Administrator shall at all times be the same Person.

         MASTER SERVICER EVENT OF DEFAULT: One or more of the events described
in Section 7.1 hereof.

         MASTER SERVICING FEE RATE:  0.008% per annum.

         MASTER SERVICING FEE: As to each Loan and any Distribution Date, an
amount equal to one twelfth of the product of the Master Servicing Fee Rate
multiplied by the Scheduled Principal Balance of such Loan as of the Due Date in
the month preceding the month of such Distribution Date.

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

         MOODY'S: Moody's Investors Service, Inc. or its successor in interest.

         MORTGAGE: The mortgage, deed of trust or other instrument creating a
first lien on, or first priority security interest in, a Mortgaged Property
securing a Mortgage Note.

         MORTGAGE FILE: The Loan Documents pertaining to a particular Loan.

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

         MORTGAGE LOAN PURCHASE AGREEMENT: The Mortgage Loan Purchase Agreement
dated as of September 30, 2003, between the Depositor and the Seller.

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

         MORTGAGE POOL: All of the Loans.

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

         MORTGAGOR: The obligor on a Mortgage Note.

         NET MONTHLY EXCESS CASHFLOW: With respect to any Distribution Date, the
sum of (i) any Overcollateralization Reduction Amount and (ii) the excess of (x)
the Available Distribution Amount over (y) the sum for such Distribution Date of
(A) the aggregate Senior Interest Distribution Amounts payable to the holders of
the Senior Certificates, (B) the aggregate Interest Distribution Amounts payable
to the holders of the Class M Certificates and (C) the Principal Remittance
Amount.

                                      -21-
<PAGE>

         NET MORTGAGE RATE: For each Loan and for any date of determination, a
per annum rate equal to the Mortgage Interest Rate for such Loan less the
Servicing Fee Rate, the Master Servicing Fee Rate, the Credit Risk Management
Fee Rate, and the rate at which the LPMI Fee is calculated if any.

         NET WAC PASS-THROUGH RATE: For the October 2003 Distribution Date
through the September 2005 Distribution Date, a per annum rate equal to (1) the
weighted average of the Net Mortgage Rates of the Loans as of the first day of
the month preceding the month in which such Distribution Date occurs minus (2)
the Pass-Through Rate for the Class A-IO Certificates for such Distribution Date
multiplied by a fraction, the numerator of which is the Notional Amount of the
Class A-IO Certificates immediately prior to such Distribution Date, and the
denominator of which is the aggregate scheduled Principal Balance of the Loans
before giving effect to distributions on such Distribution Date. With respect to
any subsequent Distribution Date, the weighted average of the Net Mortgage Rates
of the Loans. For federal income tax purposes, the Net WAC Rate, with respect to
any Distribution Date, shall be expressed as the weighted average of the
Uncertificated REMIC II Pass-Through Rates weighted on the basis of the
Uncertificated Principal Balance of the REMIC II Regular Interests.

         NET WAC RATE CARRYOVER AMOUNT: With respect to the Class A Certificates
(other than the Class A-IO Certificates) and the Class M Certificates and any
Distribution Date on which the pass-through rate is limited to the applicable
Net WAC Pass-Through Rate, an amount equal to the sum of (i) the excess of (x)
the amount of interest the Class A Certificates or Class M Certificates would
have been entitled to receive on such Distribution Date if the Net WAC
Pass-Through Rate would not have been applicable to such Certificates on such
Distribution Date over (y) the amount of interest accrued on such Distribution
Date at the applicable Net WAC Pass-Through Rate plus (ii) the related Net WAC
Rate Carryover Amount for the previous Distribution Date not previously
distributed together with interest thereon at a rate equal to the related
pass-through rate for such Class of Certificates for the most recently ended
Interest Accrual Period.

         NONRECOVERABLE ADVANCE: With respect to any Loan, any Advance or
Servicing Advance which the related Servicer shall have determined to be a
Nonrecoverable Advance as defined in and pursuant to the related Servicing
Agreement, or which the Master Servicer shall have determined to be
nonrecoverable pursuant to Section 4.4, respectively, and which was or is
proposed to be made by such Servicer or the Master Servicer.

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

         NOTIONAL AMOUNT: With respect to the Class A-IO Certificates will be as
follows: the lesser of (x) from and including the 1st Distribution Date through
the 6th Distribution Date $38,932,100; from and including the 7th Distribution
Date through the 16th Distribution Date $31,586,400; from and including the 17th
Distribution Date through the 18th Distribution Date $24,240,800; from and
including the 19th Distribution Date through the 23rd Distribution Date
$16,895,100; and on the 24th Distribution Date $16,000,000; thereafter $0 and
(y) the then aggregate principal balance of the Loans (prior to giving effect to
scheduled payments of principal due during the related Due Period, to the extent
received or advanced, and unscheduled collections of principal received during
the related Prepayment Period). For federal income tax

                                      -22-
<PAGE>

purposes, the Class A-IO Certificates will not have a Notional Amount, but will
be entitled to 100% of amounts distributed on REMIC II Regular Interest LTII-IO.
With respect to the Class CE Certificates, immediately prior to any Distribution
Date, the aggregate of the Uncertificated Principal Balances of the REMIC II
Regular Interests (other than REMIC II Regular Interest LTII-P).

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

         OPINION OF COUNSEL: A written opinion of counsel, who may, without
limitation, be salaried counsel for the Depositor, a Servicer, the Securities
Administrator or the Master Servicer, acceptable to the Trustee, except that any
opinion of counsel relating to (a) the qualification of any REMIC as a REMIC or
(b) compliance with the REMIC Provisions must be an opinion of Independent
counsel.

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

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

         OVERCOLLATERALIZATION AMOUNT: Initially, approximately $1,028,613.72,
with respect to any Distribution Date following the Closing Date, the excess, if
any, of (a) the aggregate Principal Balances of the Loans and REO Properties
immediately following such Distribution Date over (b) the sum of the aggregate
Certificate Principal Balances of the Senior Certificates, the Class M
Certificates and the Class P Certificates as of such Distribution Date (after
taking into account the payment of the Principal Remittance Amount on such
Distribution Date).

         OVERCOLLATERALIZATION INCREASE AMOUNT: With respect to the Class A
Certificates and the Class M Certificates and any Distribution Date is any
amount of Net Monthly Excess Cashflow actually applied as an accelerated payment
of principal to the extent the Required Overcollateralization Amount exceeds the
Overcollateralization Amount.

         OVERCOLLATERALIZATION REDUCTION AMOUNT: With respect to any
Distribution Date, is the lesser of (i) the Principal Remittance Amount and (ii)
the excess, if any, of (a) the Overcollateralization Amount for such
Distribution Date (calculated for this purpose only after assuming that 100% of
the Principal Remittance Amount on such Distribution Date has been distributed
over (b) the Required Overcollateralization Amount; provided however that on any
Distribution Date on which a Trigger Event is in effect, the
Overcollateralization Reduction Amount shall equal zero.

                                      -23-
<PAGE>

         OWNERSHIP INTEREST: With respect to any Residual Certificate, any
ownership or security interest in such Residual Certificate, including any
interest in a Residual Certificate as the Holder thereof and any other interest
therein whether direct or indirect, legal or beneficial, as owner or as pledge.

         PASS-THROUGH ENTITY: Any regulated investment company, real estate
investment trust, common trust fund, partnership, trust or estate, and any
organization to which Section 1381 of the Code applies.

         PASS-THROUGH RATE: With respect to the Class A Certificates (other than
the Class A-IO Certificates) and Class M Certificates and any Distribution Date,
the lesser of (i) the fixed rate listed in the Preliminary Statement hereto and
(ii) the Net WAC Pass-Through Rate; provided, that with respect to the Class
A-5, Class A-6 and Class M Certificates, the fixed rate listed in the
Preliminary Statement hereto shall be increased by 0.50% per annum on the
Distribution Date following the first possible optional termination date, and
(ii) the Net WAC Pass-Through Rate. With respect to the Class A-IO Certificates
(i) for the first twenty-four Distribution Dates, 4.50% per annum and (ii) for
any Distribution Date thereafter, 0.00%. For federal income tax purposes,
however, the Class A-IO Certificates will not have a Class A-IO Pass-Through
Rate, and the Interest Distribution Amount for the Class A-IO Certificates and
any Distribution Date will be deemed to be 100% of the amount distributed on
REMIC II Regular Interest LTII-IO for such Distribution Date.

         With respect to the Class CE Certificates, on any Distribution Date, a
per annum rate equal to the percentage equivalent of a fraction, the numerator
of which is (x) the sum of the amounts calculated pursuant to clauses (A)
through (L) below, and the denominator of which is (y) the aggregate of the
Uncertificated Principal Balances of the REMIC II Regular Interests (other than
REMIC II Regular Interest LTII-P). For purposes of calculating the Pass-Through
Rate for the Class CE Certificates, the numerator is equal to the sum of the
following components:

                  (A) the Uncertificated REMIC II Pass-Through Rate for REMIC II
Regular Interest LTII-AA minus the Marker Rate, applied to an amount equal to
the Uncertificated Principal Balance of REMIC II Regular Interest LTII-AA;

                  (B) the Uncertificated REMIC II Pass-Through Rate for REMIC II
Regular Interest LTII-A1 minus the Marker Rate, applied to an amount equal to
the Uncertificated Principal Balance of REMIC II Regular Interest LTII-A1;

                  (C) the Uncertificated REMIC II Pass-Through Rate for REMIC II
Regular Interest LTII-A2 minus the Marker Rate, applied to an amount equal to
the Uncertificated Principal Balance of REMIC II Regular Interest LTII-A2;

                  (D) the Uncertificated REMIC II Pass-Through Rate for REMIC II
Regular Interest LTII-A3 minus the Marker Rate, applied to an amount equal to
the Uncertificated Principal Balance of REMIC II Regular Interest LTII-A3;

                                      -24-
<PAGE>

                  (E) the Uncertificated REMIC II Pass-Through Rate for REMIC II
Regular Interest LTII-A4 minus the Marker Rate, applied to an amount equal to
the Uncertificated Principal Balance of REMIC II Regular Interest LTII-A4;

                  (F) the Uncertificated REMIC II Pass-Through Rate for REMIC II
Regular Interest LTII-A5 minus the Marker Rate, applied to an amount equal to
the Uncertificated Principal Balance of REMIC II Regular Interest LTII-A5;

                  (G) the Uncertificated REMIC II Pass-Through Rate for REMIC II
Regular Interest LTII-A6 minus the Marker Rate, applied to an amount equal to
the Uncertificated Principal Balance of REMIC II Regular Interest LTII-A6;

                  (H) the Uncertificated REMIC II Pass-Through Rate for REMIC II
Regular Interest LTII-M1 minus the Marker Rate, applied to an amount equal to
the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M1;

                  (I) the Uncertificated REMIC II Pass-Through Rate for REMIC II
Regular Interest LTII-M2 minus the Marker Rate, applied to an amount equal to
the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M2;

                  (J) the Uncertificated REMIC II Pass-Through Rate for REMIC II
Regular Interest LTII-M3 minus the Marker Rate, applied to an amount equal to
the Uncertificated Principal Balance of REMIC II Regular Interest LTII-M3;

                  (K) the Uncertificated REMIC II Pass-Through Rate for REMIC II
Regular Interest LTII-ZZ minus the Marker Rate, applied to an amount equal to
the Uncertificated Principal Balance of REMIC II Regular Interest LTII-ZZ; and

                  (L) 100% of the interest distributable on REMIC II Regular
Interest LTII-P.

         PAYOFF: Any payment of principal on a Loan by a Mortgagor equal to the
entire outstanding Principal Balance of such Loan, if received in advance of the
last scheduled Due Date for such Loan and is not accompanied by scheduled
interest due on any date or dates in any month or months subsequent to the month
of such payment-in-full.

         PERCENTAGE INTEREST: With respect to any Class of Certificates (other
than the Residual Certificates), the undivided percentage ownership in such
Class evidenced by such Certificate, expressed as a percentage, the numerator of
which is the initial Certificate Principal Balance represented by such
Certificate and the denominator of which is the aggregate initial Certificate
Principal Balance or Notional Amount of all of the Certificates of such Class.
Each Certificate is issuable only in minimum Percentage Interests corresponding
to the Authorized Denomination of the related Class of Certificates; provided,
however, that a single Certificate of each such Class of Certificates may be
issued having a Percentage Interest corresponding to the remainder of the
aggregate initial Certificate Principal Balance of such Class or to an otherwise
Authorized Denomination for such Class plus such remainder. With respect to any
Residual Certificate, the undivided percentage ownership in such Class evidenced
by such Certificate, is as set forth on the face of such Certificate.

                                      -25-
<PAGE>

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

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

         PLAN: As defined in Section 5.3.

         PREPAID MONTHLY PAYMENT: Any Monthly Payment received prior to its
scheduled Due Date, which is intended to be applied to a Loan on its scheduled
Due Date and held in the related Protected Account until the related Servicer
Remittance Date following its scheduled Due Date.

         PREPAYMENT CHARGE: With respect to any Principal Prepayment, any
prepayment premium, penalty or charge payable by a Mortgagor in connection with
any Principal Prepayment on a Loan pursuant to the terms of the related Mortgage
Note.

         PREPAYMENT CHARGE SCHEDULE: As of any date, the list of Loans providing
for a Prepayment Charge included in the Trust Fund on such date, attached hereto
as Schedule 2 (including the prepayment charge summary attached thereto). The
Depositor shall deliver or cause the delivery of the Prepayment Charge Schedule
to the Master Servicer, the Trustee and the Credit Risk Manager on the Closing
Date. The Prepayment Charge Schedule shall set forth the following information
with respect to each Prepayment Charge:

                  (i)    the Loan identifying number;

                  (ii)   a code indicating the type of Prepayment Charge;

                  (iii)  the date on which the first Monthly Payment was due on
                         the related Mortgaged Loan;

                                      -26-
<PAGE>

                  (iv)   the term of the related Prepayment Charge;

                  (v)    the original Principal Balance of the related Loan; and

                  (vi)   the Principal Balance of the related Loan as of the
                         Cut-off Date.

         PREPAYMENT INTEREST SHORTFALL: For any Distribution Date and any Loan
on which a Payoff was made by a Mortgagor during the related Prepayment Period,
an amount equal to one month's interest at the applicable Net Mortgage Rate on
such Loan less the amount of interest actually paid by the Mortgagor with
respect to such Payoff.

         PREPAYMENT PERIOD: For any Distribution Date, the calendar month
immediately preceding such Distribution Date.

         PRINCIPAL BALANCE: For any Loan and at the time of any determination,
the principal balance of such Loan remaining to be paid at the close of business
on the Cut-Off Date, after deduction of all principal payments due on or before
the Cut-Off Date whether or not received, reduced by the principal portion of
all amounts received with respect to such Loan after the Cut-Off Date and
distributed or to be distributed to Certificateholders through the Distribution
Date in the month of such determination. In the case of a Substitute Loan,
"Principal Balance" shall mean, at the time of any determination, the principal
balance of such Substitute Loan on the related Cut-Off Date, reduced by the
principal portion of all amounts received with respect to such Loan after the
Cut-Off Date and distributed or to be distributed to Certificateholders through
the Distribution Date in the month of determination.

         PRINCIPAL DISTRIBUTION AMOUNT: On any Distribution Date, the sum of (i)
the principal portion of all scheduled monthly payments on the Loans due during
the related Due Period, whether or not received on or prior to the related
Determination Date, (ii) the principal portion of repurchase proceeds received
with respect to any Loan which was repurchased by the Depositor pursuant to a
Purchase Obligation or as permitted by this Agreement prior to such Distribution
Date or, in the case of a substitution, certain amounts representing a principal
adjustment; (iii) any other unscheduled payments of principal which were
received with respect to any Loan during the applicable Prepayment Period,
including Payoffs, Curtailments and Liquidation Proceeds, to the extent applied
as recoveries of principal on the Loans; and (iv) the amount of any
Overcollateralization Increase Amount for such Distribution Date minus (v) the
amount of any Overcollateralization Reduction Amount for such Distribution Date
and any amounts payable or reimbursable therefrom to the Servicers, the Trustee,
the Custodian, the Master Servicer or the Securities Administrator. In no event
will the Principal Distribution Amount with respect to any Distribution Date be
(x) less than zero or (y) greater than the outstanding Certificate Principal
Balance of the Class A Certificates and the Class M Certificates.

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

         PRINCIPAL PREPAYMENT AMOUNT: On any Distribution Date and for the
Loans, the sum of (i) Curtailments received during the related Prepayment Period
and (ii) Payoffs received during the related Prepayment Period.

                                      -27-
<PAGE>

         PRINCIPAL REMITTANCE AMOUNT: With respect to any Distribution Date will
be the sum of the amounts described in clauses (i) through (iii) of the
definition of Principal Distribution Amount net of any amounts payable or
reimbursable therefrom to the Trustee, the Custodian, the Securities
Administrator or the Servicers pursuant to this Agreement or the Custodial
Agreement.

         PROTECTED ACCOUNT: An account or accounts established and maintained
for the benefit of the Certificateholders by each Servicer with respect to the
related Loans and with respect to REO Property pursuant to the applicable
Servicing Agreement.

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

         PURCHASE PRICE: With respect to any Loan to be purchased pursuant to a
Purchase Obligation, or any Loan to be purchased or repurchased relating to an
REO Property, and as confirmed by an Officers' Certificate from the Master
Servicer to the Trustee and the Securities Administrator, an amount equal to the
sum of (i) 100% of the Principal Balance thereof as of the date of purchase (or
such other price as provided in Section 9.1), (ii) in the case of (x) a Loan,
accrued interest on such Principal Balance at the applicable Net Mortgage Rate
from the date interest was last paid by the related Mortgagor or the date an
Advance by the applicable Servicer or the Master Servicer, which payment or
Advance had as of the date of purchase been distributed pursuant to Section 4.1,
through the end of the calendar month in which the purchase is to be effected
and (y) an REO Property, the sum of (1) accrued interest on such Principal
Balance at the applicable Net Mortgage Rate from the date interest was last paid
by the related Mortgagor or the date an Advance by the applicable Servicer or
the Master Servicer through the end of the calendar month immediately preceding
the calendar month in which such REO Property was acquired, plus (2) REO Imputed
Interest for such REO Property for each calendar month commencing with the
calendar month in which such REO Property was acquired and ending with the
calendar month in which such purchase is to be effected, net of the total of all
net rental income, Insurance Proceeds, Liquidation Proceeds and Advances that as
of the date of purchase had been distributed as or to cover REO Imputed Interest
in accordance with the applicable Servicing Agreement, (iii) any unreimbursed
Servicing Advances and Advances (including Nonrecoverable Advances) and any
unpaid Servicing Fees or Master Servicing Fees allocable to such Loan or REO
Property and (iv) in the case of a Loan required to be purchased pursuant to
Section 2.3, expenses reasonably incurred or to be incurred by the Master
Servicer, the Servicers, the Trustee or the Securities Administrator in respect
of the breach or defect giving rise to a Purchase Obligation and any costs and
damages incurred by the Trust Fund in connection with any violation by any such
Mortgage Loan of any predatory or abusive lending law.

         RATE CHANGE DATE: With respect to a REMIC II Regular Interest
Component, the first month in which the pass-through rate for such component is
equal to 0.00%.

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

                                      -28-
<PAGE>

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

         REALIZED LOSS: For any Distribution Date and any Loan which became a
Liquidated Loan during the related Prepayment Period, the sum of (i) the
principal balance of such Loan remaining outstanding (after all recoveries of
principal have been applied thereto) and the principal portion of Advances which
have been reimbursed with respect to such Loan, and (ii) the accrued interest on
such Loan remaining unpaid and the interest portion of Advances which have been
reimbursed from Liquidation Proceeds with respect to such Loan. The amounts
described in clause (i) shall be the principal portion of Realized Losses and
the amounts described in clause (ii) shall be the interest portion of Realized
Losses. For any Distribution Date and any Loan which is not a Liquidated Loan,
the amount of any Bankruptcy Loss incurred with respect to such Loan as of the
related Due Date shall be treated as a Realized Loss.

         RECORD DATE: With respect to each Distribution Date and the
Certificates, other than Class A-1 Certificates, the last Business Day of the
month immediately preceding the month of the related Distribution Date; with
respect to the Class A-1 Certificates, the Business Day, preceding the related
Distribution Date.

         REFERENCE BANKS: Bankers Trust Company, Barclay's Bank PLC, The Tokyo
Mitsubishi Bank and National Westminster Bank PLC and their successors in
interest; provided, however, that if any of the foregoing banks are not suitable
to serve as a Reference Bank, then any leading banks selected by the Securities
Administrator which are engaged in transactions in Eurodollar deposits in the
International Eurocurrency market (i) with an established place of business in
London, (ii) not controlling, under the control of or under common control with
the Depositor or any Affiliate thereof and (iii) which have been designated as
such by the Securities Administrator.

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

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

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

         REMIC: A "real estate mortgage investment conduit" within the meaning
of Section 860D of the Code.

         REMIC I REGULAR INTEREST LTI-1: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest LTI-1 shall accrue
interest at the related Uncertificated REMIC I Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

                                      -29-
<PAGE>

         REMIC I REGULAR INTEREST LTI-IO-A: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest LTI-IO-A shall accrue
interest at the related Uncertificated REMIC I Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC I REGULAR INTEREST LTI-IO-B: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest LTI-IO-B shall accrue
interest at the related Uncertificated REMIC I Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC I REGULAR INTEREST LTI-IO-C: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest LTI-IO-C shall accrue
interest at the related Uncertificated REMIC I Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC I REGULAR INTEREST LTI-IO-D: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest LTI-IO-D shall accrue
interest at the related Uncertificated REMIC I Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC I REGULAR INTEREST LTI-IO-E: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest LTI-IO-E shall accrue
interest at the related Uncertificated REMIC I Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC I REGULAR INTEREST LTI-P: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest LTI-P shall accrue
interest at the related Uncertificated REMIC I Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC I REGULAR INTERESTS: REMIC I Regular Interest LTI-1, REMIC I
Regular Interest LTI-IO-A, REMIC I Regular Interest LTI-IO-B, REMIC I Regular
Interest LTI-IO-C, REMIC I Regular Interest LTI-IO-D, REMIC I Regular Interest
LTI-IO-E and, REMIC I Regular Interest LTI-P.

                                      -30-
<PAGE>

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

         REMIC II INTEREST LOSS ALLOCATION AMOUNT: With respect to any
Distribution Date, an amount equal to (a) the product of (i) the aggregate
Stated Principal Balance of the Mortgage Loans and REO Properties then
outstanding and (ii) the REMIC II Remittance Rate for REMIC II Regular Interest
II-LTAA minus the Marker Rate, divided by (b) 12.

         REMIC II OVERCOLLATERALIZATION AMOUNT: With respect to any date of
determination, (i) 1% of the aggregate Uncertificated Principal Balances of the
REMIC II Regular Interests minus (ii) the aggregate of the Uncertificated
Balances of REMIC II Regular Interest LTII-A1, REMIC II Regular Interest
LTII-A2, REMIC II Regular Interest LTII-A3, REMIC II Regular Interest LTII-A4,
REMIC II Regular Interest LTII-A5, REMIC II Regular Interest LTII-A6, REMIC II
Regular Interest LTII-M1, REMIC II Regular Interest LTII-M2, REMIC II Regular
Interest LTII-M3 and REMIC Regular Interest LTII-P, in each case as of such date
of determination.

         REMIC II OVERCOLLATERALIZATION TARGET AMOUNT: 1% of the Required
Overcollateralization Amount.

         REMIC II PRINCIPAL LOSS ALLOCATION AMOUNT: With respect to any
Distribution Date, an amount equal to (a) the product of (i) the aggregate
Stated Principal Balance of the Mortgage Loans and REO Properties then
outstanding and (ii) 1 minus a fraction, the numerator of which is two times the
aggregate of the Uncertificated Principal Balances of REMIC II Regular Interest
LTII-A1, REMIC II Regular Interest LTII-A2, REMIC II Regular Interest LTII-A3,
REMIC II Regular Interest LTII-A4, REMIC II Regular Interest LTII-A5, REMIC II
Regular Interest LTII-A6, REMIC II Regular Interest LTII-M1, REMIC II Regular
Interest LTII-M2, REMIC II Regular Interest LTII-M3 and REMIC II Regular
Interest LTII-ZZ.

         REMIC II REGULAR INTERESTS: REMIC II Regular Interest LTII-AA, REMIC II
Regular Interest LTII-A1, REMIC II Regular Interest LTII-A2, REMIC II Regular
Interest LTII-A3, REMIC II Regular Interest LTII-A4, REMIC II Regular Interest
LTII-A5, REMIC II Regular Interest LTII-A6, REMIC II Regular Interest LTII-M1,
REMIC II Regular Interest LTII-M2, REMIC II Regular Interest LTII-M3, REMIC II
Regular Interest LTII-IO, REMIC II Regular Interest LTII-ZZ and REMIC II Regular
Interest LTII-P.

         REMIC II REGULAR INTEREST COMPONENT: Any of REMIC II Regular Interest
Component IO-1, REMIC II Regular Interest Component IO-2, REMIC II Regular
Interest Component IO-3, REMIC II Regular Interest Component IO-4 or REMIC II
Regular Interest Component IO-5, each of which is deemed to be a component of
REMIC II Regular Interest LTII-IO.

         REMIC II REGULAR INTEREST LTII-AA: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest LTII-AA shall accrue
interest at the related Uncertificated REMIC II Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

                                      -31-
<PAGE>

         REMIC II REGULAR INTEREST LTII-A1: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest LTII-A1 shall accrue
interest at the related Uncertificated REMIC II Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC II REGULAR INTEREST LTII-A2: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest LTII-A2 shall accrue
interest at the related Uncertificated REMIC II Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC II REGULAR INTEREST LTII-A3: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest LTII-A3 shall accrue
interest at the related Uncertificated REMIC II Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC II REGULAR INTEREST LTII-A4: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest LTII-A4 shall accrue
interest at the related Uncertificated REMIC II Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC II REGULAR INTEREST LTII-A5: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest LTII-A5 shall accrue
interest at the related Uncertificated REMIC II Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC II REGULAR INTEREST LTII-A6: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest LTII-A6 shall accrue
interest at the related Uncertificated REMIC II Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC II REGULAR INTEREST LTII-IO: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest LTII-IO shall accrue
interest as provided herein and shall not be entitled to distributions of
principal. REMIC II Regular Interest LTII-IO will be deemed to be composed of
five components, IO-1 through IO-5, each of which is a Corresponding Interest to
a REMIC I Regular Interest.

                                      -32-
<PAGE>

         REMIC II REGULAR INTEREST LTII-M1: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest LTII-M1 shall accrue
interest at the related Uncertificated REMIC II Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC II REGULAR INTEREST LTII-M2: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest LTII-M2 shall accrue
interest at the related Uncertificated REMIC II Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC II REGULAR INTEREST LTII-M3: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest LTII-M3 shall accrue
interest at the related Uncertificated REMIC II Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC II REGULAR INTEREST LTII-P: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest LTII-P shall accrue
interest at the related Uncertificated REMIC II Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC II REGULAR INTEREST LTII-ZZ: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest LTII-ZZ shall accrue
interest at the related Uncertificated REMIC II Pass-Through Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Principal Balance as set forth in the Preliminary Statement
hereto.

         REMIC II REGULAR INTEREST LTII-ZZ MAXIMUM INTEREST DEFERRAL AMOUNT:
With respect to any Distribution Date, the excess of (i) accrued interest at the
Uncertificated REMIC II Pass-Through Rate applicable to REMIC II Regular
Interest LTII-ZZ for such Distribution Date on a balance equal to the
Uncertificated Principal Balance of REMIC II Regular Interest LTII-ZZ minus the
REMIC II Overcollateralization Amount, in each case for such Distribution Date,
over (ii) Uncertificated Accrued Interest on REMIC II Regular Interest LTII-A1,
REMIC II Regular Interest LTII-A2, REMIC II Regular Interest LTII-A3, REMIC II
Regular Interest LTII-A4, REMIC II Regular Interest LTII-A5, REMIC II Regular
Interest LTII-A6, REMIC II Regular Interest LTII-M1, REMIC II Regular Interest
LTII-M2 and REMIC II Regular Interest LTII-M3 for such Distribution Date, with
the rate on each such REMIC II Regular Interest subject to a cap equal to the
related Pass-Through Rate.

                                      -33-
<PAGE>

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

         REMIC PROVISIONS: Provisions of the federal income tax law relating to
real estate mortgage investment conduits, which appear at Section 860A through
860G of the Code, and related provisions, and proposed, temporary and final
regulations and published rulings, notices and announcements promulgated
thereunder, as the foregoing may be in effect from time to time.

         REMIC REGULAR INTEREST: A REMIC I Regular Interest, REMIC II Regular
Interest or a Regular Interest Certificate.

         REMITTANCE REPORT: A report by the Securities Administrator pursuant to
Section 4.3.

         REO DISPOSITION: The sale or other disposition of an REO Property on
behalf of REMIC I.

         REO IMPUTED INTEREST: As to any REO Property, for any calendar month
during which such REO Property was at any time part of REMIC I, one month's
interest at the applicable Net Mortgage Rate on the Scheduled Principal Balance
of such REO Property (or, in the case of the first such calendar month, of the
related Loan, if appropriate) as of the close of business on the Distribution
Date in such calendar month.

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

         REQUIRED OVERCOLLATERALIZATION AMOUNT: With respect to any Distribution
Date following the Closing Date, shall be an amount equal to $1,028,337.50.

         REQUIRED OVERCOLLATERALIZATION PERCENTAGE: For any Distribution Date, a
percentage equal to (a) the Required Overcollateralization Amount divided by (b)
the aggregate Principal Balance of the Loans as of the last day of the related
Due Period (after giving effect to scheduled payments of principal due during
the related Due Period, to the extent received or advanced, and unscheduled
collections of principal received during the related Prepayment Period, and
after reduction for Realized Losses incurred during the related Prepayment
Period).

         RESIDUAL CERTIFICATE: The Class R Certificate, which is being issued in
a single class. Components R-1, R-2 and R-3 of the Class R Certificate are
hereby each designated the sole Class of "residual interests" in REMIC I, REMIC
II and REMIC III, respectively, for purposes of Section 860G(a)(2) of the Code.

         RESERVE FUND: Shall mean the separate trust account created and
maintained by the Securities Administrator pursuant to Section 3.25 hereof.

         RESPONSIBLE OFFICER: When used with respect to the Trustee, any officer
in the corporate trust department or similar group of the Trustee with direct
responsibility for the administration of this Agreement and also, with respect
to a particular corporate trust matter, any other officer to whom such matter is
referred because of his or her knowledge of and familiarity with the

                                      -34-
<PAGE>

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

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

         SCHEDULED PRINCIPAL BALANCE: With respect to any Loan and a Due Date,
the unpaid principal balance of such Loan as specified in the amortization
schedule (before any adjustment to such schedule by reason of bankruptcy or
similar proceeding or any moratorium or similar waiver or grace period) for such
Due Date, after giving effect to any previously applied Curtailments, the
payment of principal on such Due Date and any reduction of the principal balance
of such Loan by a bankruptcy court, irrespective of any delinquency in payment
by the related Mortgagor.

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

         SECURITIES ADMINISTRATOR: As of the Closing Date, Wells Fargo Bank
Minnesota, National Association and thereafter, its respective successors in
interest who meet the qualifications of this Agreement. The Securities
Administrator and the Master Servicer shall at all times be the same Person.

         SELLER: Deutsche Bank AG New York Branch, or its successor in interest,
in its capacity as seller under the Mortgage Loan Purchase Agreement and in its
capacity as assignor under the Assignment Agreements.

         SENIOR CERTIFICATES: Class A-1, Class A-2, Class A-3, Class A-4, Class
A-5, Class A-6, and Class A-IO Certificates.

         SENIOR INTEREST DISTRIBUTION AMOUNT: With respect to any Distribution
Date, an amount equal to the sum of (i) the Interest Distribution Amount for
such Distribution Date for the Class A Certificates and (ii) the Interest Carry
Forward Amount, if any, for such Distribution Date for the Class A Certificates.

                                      -35-
<PAGE>

         SENIOR PRINCIPAL DISTRIBUTION AMOUNT: will be, with respect to any
Distribution Date (i) prior to the Stepdown Date or on or after the Stepdown
Date if a Trigger Event is in effect, the Principal Distribution Amount or (ii)
on or after the Stepdown Date if a Trigger Event is not in effect for that
Distribution Date, the lesser of:

                  (a) the Principal Distribution Amount for that Distribution
Date; and

                  (b) the excess of (A) the aggregate Certificate Principal
Balance of the Class A Certificates immediately prior to that Distribution Date
over (B) the positive difference between (i) the aggregate Principal Balance of
the Loans as of the last day of the related Due Period (after reduction for
Realized Losses incurred during the related Prepayment Period) and (ii) the
product of (x) the aggregate Principal Balance of the Loans as of the last day
of the related Due Period (after reduction for Realized Losses incurred during
the related Prepayment Period) and (y) the sum of 10.00% and the Required
Overcollateralization Percentage.

         SERVICER: GMAC or Greenpoint, as applicable, or any successor appointed
under the applicable Servicing Agreement.

         SERVICER REMITTANCE DATE: With respect to each Distribution Date shall
mean (i) with respect to GMAC, the 18th day of the calendar month in which such
Distribution Date occurs or, if such 18th day is not a Business Day, the
Business Day immediately preceding such 18th day and (ii) with respect to
Greenpoint, the 10th day of the calendar month in which such Distribution Date
occurs or, if such 10th day is not a Business Day, the Business Day immediately
preceding such 10th day.

         SERVICING ADVANCES: The customary reasonable and necessary
"out-of-pocket" costs and expenses incurred by the applicable Servicer in
connection with a default, delinquency or other unanticipated event by the
applicable Servicer in the performance of its servicing obligations, including,
but not limited to, the cost of (i) the preservation, restoration and protection
of a Mortgaged Property, (ii) any enforcement or judicial proceedings, including
foreclosures, in respect of a particular Loan and (iii) the management
(including reasonable fees in connection therewith) and liquidation of any REO
Property. No Servicer shall be required to make any Servicing Advance in respect
of a Loan or REO Property that, in the good faith business judgment of such
Servicer, would not be ultimately recoverable from related Insurance Proceeds or
Liquidation Proceeds on such Loan or REO Property as provided herein.

         SERVICING AGREEMENT: The GMAC Servicing Agreement or the Greenpoint
Servicing Agreement.

         SERVICING FEE: With respect to each Loan and for any Distribution Date,
an amount equal to one twelfth of the product of the Servicing Fee Rate
multiplied by the Scheduled Principal Balance of such Loan as of the Due Date in
the month preceding the month of such Distribution Date. The Servicing Fee is
payable solely from collections of interest on the Loans or as otherwise
provided in the related Servicing Agreement.

         SERVICING FEE RATE: 0.25% per annum.

                                      -36-
<PAGE>

         SERVICING OFFICER: Any individual involved in, or responsible for, the
administration and servicing of the Loans whose name and specimen signature
appear on a list of servicing officers furnished to the Trustee and the
Securities Administrator on the Closing Date by each Servicer and the Master
Servicer, as such lists may from time to time be amended.

         STARTUP DAY: With respect to the REMIC, the day designated as such
pursuant to Section 10.1(b) hereof.

         STEPDOWN DATE: The earlier to occur of (i) the later to occur of (a)
the Distribution Date occurring in October 2006 and (b) the first Distribution
Date on which the Credit Enhancement Percentage (calculated for this purpose
only after taking into account distributions of principal on the Loans but prior
to any distribution of the Principal Distribution Amount to the
Certificateholders then entitled to distributions of principal on such
Distribution Date) is equal to or greater than 10.70% and (ii) the first
Distribution Date on which the aggregate Certificate Principal Balance of the
Senior Certificates has been reduced to zero.

         SUBSTITUTE LOAN: A mortgage loan substituted for a Deleted Loan
pursuant to the terms of this Agreement which must, on the date of such
substitution, (i) have an outstanding principal balance, after application of
all scheduled payments of principal and interest due during or prior to the
month of substitution, not in excess of the Scheduled Principal Balance of the
Deleted Loan as of the Due Date in the calendar month during which the
substitution occurs, (ii) have a Mortgage Interest Rate not less than (and not
more than one percentage point in excess of) the Mortgage Interest Rate of the
Deleted Loan, (iii) have a remaining term to maturity not greater than (and not
more than one year less than) that of the Deleted Loan, (iv) have the same Due
Date as the Due Date on the Deleted Loan, (v) have a Loan-to-Value Ratio as of
the date of substitution equal to or lower than the Loan-to-Value Ratio of the
Deleted Loan as of such date, (vi) have a risk grading at least equal to the
risk grading assigned on the Deleted Loan, (vii) is a "qualified mortgage" as
defined in the REMIC Provisions and (vii) conform to each representation and
warranty set forth in Section 6 of the Mortgage Loan Purchase Agreement
applicable to the Deleted Loan. In the event that one or more mortgage loans are
substituted for one or more Deleted Loans, the amounts described in clause (i)
hereof shall be determined on the basis of aggregate principal balances, the
Mortgage Interest Rates described in clause (ii) hereof shall be determined on
the basis of weighted average Mortgage Interest Rates, the terms described in
clause (iii) hereof shall be determined on the basis of weighted average
remaining term to maturity, the Loan-to-Value Ratios described in clause (v)
hereof shall be satisfied as to each such mortgage loan, the risk gradings
described in clause (vi) hereof shall be satisfied as to each such mortgage loan
and, except to the extent otherwise provided in this sentence, the
representations and warranties described in clause (vii) hereof must be
satisfied as to each Substitute Loan or in the aggregate, as the case may be. In
the event that the Deleted Loan is a Discount Loan, the Substitute Loan(s) shall
be deemed to be a Discount Loan(s) regardless of the Net Mortgage Rate thereof.

         TAX MATTERS PERSON: The Holder of the Class R Certificates issued
hereunder or any Permitted Transferee of such Class R Certificateholder shall be
the initial "tax matters person" for REMIC I, REMIC II and REMIC III within the
meaning of Section 6231(a)(7) of the Code. For tax years commencing after any
transfer of the Class R Certificate, the holder of the greatest Percentage
Interest in the Class R Certificate at year end shall be designated as the Tax
Matters

                                      -37-
<PAGE>

Person with respect to that year. If the Tax Matters Person becomes a
Disqualified Organization, the last preceding Holder of such Authorized
Denomination of the Class R Certificate that is not a Disqualified Organization
shall be Tax Matters Person pursuant to Section 5.3(e). If any Person is
appointed as tax matters person by the Internal Revenue Service pursuant to the
Code, such Person shall be Tax Matters Person.

         TERMINATION PRICE: As defined in Section 9.1.

         TERMINATOR: As defined in Section 9.1.

         TRANSFER: Any direct or indirect transfer, sale, pledge or other
disposition of, or directly or indirectly transferring, selling or pledging, any
Ownership Interest in a Class CE Certificate, Class P Certificate or Residual
Certificate.

         TRANSFEREE: Any Person who is acquiring by Transfer any Ownership
Interest in a Class CE Certificate, Class P Certificate or Residual Certificate.

         TRIGGER EVENT: A Trigger Event has occurred with respect to a
Distribution Date if (x) the Delinquency Percentage exceeds 60% of the Credit
Enhancement Percentage of the Class A Certificates or (y) the aggregate amount
of Realized Losses incurred since the Cut-Off Date through the last day of the
related Due Period divided by the aggregate Principal Balance of the Loans as of
the Cut-Off exceeds the applicable percentages set forth below with respect to
such Distribution Date:

         Distribution Date                           Percentage
         -----------------                           ----------

         October 2006 to September 2007              0.90%
         October 2007 to September 2008              1.15%
         October 2008 to September 2009              1.45%
         October 2009 to September 2010              1.65%
         October 2010 and thereafter                 1.85%

         TRUST FUND: Collectively, all of the assets of REMIC I, REMIC II and
REMIC III, and the Reserve Fund and any amounts on deposit therein and any
proceeds thereof, and the Prepayment Charges.

         TRUSTEE: HSBC Bank USA, a New York banking corporation, or its
successor in interest, or any successor trustee appointed as herein provided.

         UNCERTIFICATED ACCRUED INTEREST: With respect to each Uncertificated
REMIC Regular Interest on each Distribution Date, an amount equal to one month's
interest at the related Uncertificated Pass-Through Rate on the Uncertificated
Principal Balance or Uncertificated Notional Amount, as applicable, of such
REMIC Regular Interest. In each case, Uncertificated Accrued Interest will be
reduced by any Prepayment Interest Shortfalls and shortfalls resulting from
application of the Relief Act (allocated to such REMIC Regular Interests as set
forth in Sections 1.2 and 4.5).

                                      -38-
<PAGE>

         UNCERTIFICATED NOTIONAL AMOUNT: With respect to REMIC II Regular
Interest LTII-IO and (i) each Distribution Date from and including the
Distribution Date in October 2003 to and including the Distribution Date in
March 2004, the aggregate Uncertificated Principal Balances of REMIC I Regular
Interest LTI-IO-A, REMIC I Regular Interest LTI-IO-B, REMIC I Regular Interest
LTI-IO-C, REMIC I Regular Interest LTI-IO-D and REMIC I Regular Interest
LTI-IO-E, (ii) each Distribution Date from and including the Distribution Date
in April 2004 to and including the Distribution Date in January 2005, the
aggregate Uncertificated Principal Balances of REMIC I Regular Interest
LTI-IO-B, REMIC I Regular Interest LTI-IO-C, REMIC I Regular Interest LTI-IO-D
and REMIC I Regular Interest LTI-IO-E, (iii) each Distribution Date from and
including the Distribution Date in February 2005 to and including the
Distribution Date in March 2005, the aggregate Uncertificated Principal Balances
of REMIC I Regular Interest LTI-IO-C, REMIC I Regular Interest LTI-IO-D and
REMIC I Regular Interest LTI-IO-E, (iv) each Distribution Date from and
including the Distribution Date in April 2005 to and including the Distribution
Date in August 2005, the aggregate Uncertificated Principal Balances of REMIC I
Regular Interest LTI-IO-D and REMIC I Regular Interest LTI-IO-E, (v) each
Distribution Date from and including the Distribution Date in September 2005 to
and including the Distribution Date in March 2006, the Uncertificated Principal
Balance of REMIC I Regular Interest LTI-IO-E, and (vi) each Distribution Date
thereafter, $0.

         UNCERTIFICATED PRINCIPAL BALANCE: With respect to each REMIC Regular
Interest (other than REMIC I Regular Interest LTII-IO, the principal amount of
such REMIC Regular Interest outstanding as of any date of determination. As of
the Closing Date, the Uncertificated Principal Balance of each REMIC Regular
Interest (other than REMIC I Regular Interest LTII-IO) shall equal the amount
set forth in the Preliminary Statement hereto as its initial Uncertificated
Principal Balance. On each Distribution Date, the Uncertificated Principal
Balance of each REMIC Regular Interest shall be reduced by all distributions of
principal made on such REMIC Regular Interest on such Distribution Date pursuant
to Section 4.5 and, if and to the extent necessary and appropriate, shall be
further reduced on such Distribution Date by Realized Losses as provided in
Section 4.2. The Uncertificated Principal Balance of each REMIC Regular Interest
shall never be less than zero. REMIC I Regular Interest LTII-IO will not have an
Uncertificated Principal Balance.

         UNCERTIFICATED REMIC I PASS-THROUGH RATE: A per annum rate equal to the
average of the Net Mortgage Rates of the Mortgage Loans as of the first day of
the related Due Period, weighted on the basis of the Stated Principal Balances
as of the first day of the related Due Period.

         UNCERTIFICATED REMIC II PASS-THROUGH RATE:

         (a) With respect to REMIC II Regular Interest LTII-AA, REMIC II Regular
Interest LTII-A1, REMIC II Regular Interest LTII-A2, REMIC II Regular Interest
LTII-A3, REMIC II Regular Interest LTII-A4, Regular Interest LTII-A5, REMIC II
Regular Interest LTII-A6, REMIC II Regular Interest LTII-M3, REMIC II Regular
Interest LTII-M2, REMIC II Regular Interest LTII-B1 and REMIC II Regular
Interest LTII-ZZ, and (i) any Distribution Date up to and including March 2006,
a per annum rate equal to (1) the weighted average of (x) with respect to REMIC
I Regular Interest LTI-1, the Uncertificated REMIC I Pass-Through Rate for such
REMIC I Regular Interest for such Distribution Date and, (y) with respect to
REMIC I Regular

                                      -39-
<PAGE>

Interest LT-IO-A through REMIC I Regular Interest LT-IO-E the excess, if any, of
(1) the Uncertificated REMIC I Pass-Through Rate with respect to such REMIC I
Regular Interest for such Distribution Date over (2) in the case of each such
REMIC I Regular Interest, (A) from the Closing Date to but not including the
Rate Change Date for the Corresponding Interest relating to such REMIC I Regular
Interest, 4.50% per annum and (B) thereafter, 0.00% per annum; weighted on the
basis of the Uncertificated Principal Balance of each REMIC I Regular Interest
and (ii) thereafter, a per annum rate equal to the weighted average of the
Uncertificated REMIC I Pass-Through Rates for the REMIC I Regular Interests,
weighted on the basis of the respective Uncertificated Principal Balances
thereof for such Distribution Date.

         (b) With respect to REMIC II Regular Interest LTII-IO and the first 24
Distribution Dates, 4.50%, and with respect to REMIC II Regular Interest LTII-IO
and any Distribution Date thereafter, 0.00% per annum.

         UNCERTIFICATED REMIC REGULAR INTEREST: The REMIC I Regular Interests
and the REMIC II Regular Interests.

         UNCOLLECTED INTEREST: With respect to any Distribution Date, the sum of
(i) the aggregate Prepayment Interest Shortfalls with respect to the Loans for
such Distribution Date and (ii) the aggregate Curtailment Shortfalls with
respect to the Loans for such Distribution Date.

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

         UNDERWRITER: Deutsche Bank Securities Inc.

         UNINSURED CAUSE: Any cause of damage to a Mortgaged Property such that
the complete restoration of such property is not fully reimbursable by the
hazard insurance policies required to be maintained pursuant to Section 3.9.

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

                                      -40-
<PAGE>

         WELLS FARGO: Wells Fargo Bank Minnesota, National Association, or any
successor thereto.

         Section 1.2 ALLOCATION OF CERTAIN INTEREST SHORTFALL.

         For purposes of calculating the amount of Accrued Certificate Interest
and the amount of the Interest Distribution Amount for the Class A Certificates,
the Mezzanine Certificates, the Class A-IO Certificates and the Class CE
Certificates for any Distribution Date, (1) the aggregate amount of any
Prepayment Interest Shortfalls and Curtailment Interest Shortfalls to the extent
not covered by payment by the Servicers pursuant to the related Servicing
Agreement or the Master Servicer pursuant to Section 3.20 shall be allocated
first to Net Monthly Excess Cashflow, second, to the Class CE Certificates based
on, and to the extent of, one month's interest at the then applicable respective
Pass-Through Rate on the Certificate Principal Balance thereof, third, to the
Class M-3 Certificates, Class M-2 Certificates, Class M-1 Certificates and Class
A Certificates, in that order, in each case on a PRO RATA basis based on, and to
the extent of, one month's interest at the then applicable respective
Pass-Through Rate on the respective Certificate Principal Balance or Notional
Amount, as applicable of each such Certificate and (2) the aggregate amount of
any Realized Losses allocated to the Mezzanine Certificates and Net WAC Rate
Carryover Amount paid to the Class A Certificates, other than the Class A-IO
Certificates, and the Mezzanine Certificates incurred for any Distribution Date
shall be allocated to the Class CE Certificates on a PRO RATA basis based on,
and to the extent of, one month's interest at the then applicable respective
Pass-Through Rate on the Certificate Principal Balance thereof on any
Distribution Date, any Relief Act Interest Shortfalls shall be allocated to the
Certificates on a pro rata basis based on their respective Interest Distribution
Amount before such reduction.

         For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC I Regular Interests for any Distribution Date, the
aggregate amount of any Unpaid Interest Shortfalls incurred in respect of the
Mortgage Loans for any Distribution Date shall be allocated first, to REMIC I
Regular Interest LTI-1 and REMIC I Regular Interest LTI-P, to the extent of one
month's interest at the then applicable respective Uncertificated REMIC I
Pass-Through Rate on the Uncertificated Principal Balance of each such REMIC I
Regular Interest; and then, to REMIC I Regular Interest LTI-IO-A, REMIC I
Regular Interest LTI-IO-B, REMIC I Regular Interest LTI-IO-C, REMIC I Regular
Interest LTI-IO-D, REMIC I Regular Interest LTI-IO-E, in each case to the extent
of one month's interest at the then applicable respective Uncertificated REMIC I
Pass-Through Rate on the respective Uncertificated Principal Balance of each
such REMIC I Regular Interest.

         For purposes of calculating the amount of Uncertificated Accrued
Interest for the REMIC II Regular Interests for any Distribution Date, the
aggregate amount of any Unpaid Interest Shortfalls incurred in respect of the
Mortgage Loans for any Distribution Date shall be allocated first, to
Uncertificated Accrued Interest payable to REMIC II Regular Interest LTII-AA and
REMIC II Regular Interest LTII-ZZ up to an aggregate amount equal to the REMIC
II Interest Loss Allocation Amount, 98% and 2%, respectively, and thereafter
among REMIC II Regular Interest LTII-A1, REMIC II Regular Interest LTII-A2,
REMIC II Regular Interest LTII-A3, REMIC II Regular Interest LTII-A4, REMIC II
Regular Interest LTII-A5, REMIC II Regular Interest LTII-A6, REMIC II Regular
Interest LTII-M1, REMIC II Regular Interest LTII-

                                      -41-
<PAGE>

M2, REMIC II Regular Interest LTII-M3 and REMIC II Regular Interest LTII-ZZ, pro
rata based on, and to the extent of, one month's interest at the then applicable
respective Uncertificated REMIC II Pass-Through Rate on the respective
Uncertificated Principal Balance of each such REMIC II Regular Interest.

                                      -42-
<PAGE>

                                   ARTICLE II
                            CONVEYANCE OF TRUST FUND;
                        ORIGINAL ISSUANCE OF CERTIFICATES

         Section 2.1 CONVEYANCE OF TRUST FUND. The Depositor, concurrently with
the execution and delivery hereof, does hereby transfer, assign, set over and
otherwise convey to the Trustee, on behalf of the Trust, without recourse, for
the benefit of the Certificateholders, all the right, title and interest of the
Depositor, including any security interest therein for the benefit of the
Depositor, in and to the Loans identified on the Loan Schedule, the rights of
the Depositor under the Mortgage Loan Purchase Agreement and the Assignment
Agreements (including, without limitation the right to enforce the obligations
of the other parties thereto thereunder), and all other assets included or to be
included in REMIC I. Such assignment includes all interest and principal
received by the Depositor or the applicable Servicer on or with respect to the
Loans (other than payments of principal and interest due on such Loans on or
before the Cut-Off Date). The Depositor herewith delivers to the Trustee
executed copies of the Mortgage Loan Purchase Agreement, the Servicing
Agreements and Assignment Agreements.

                  In connection with such transfer and assignment, the Depositor
does hereby deliver to, and deposit with the Custodian pursuant to the Custodial
Agreement the documents with respect to each Loan as described under Section 2
of the Custodial Agreement (the " Loan Documents"). In connection with such
delivery and as further described in the Custodial Agreement, the Custodian will
be required to review such Loan Documents and deliver to the Trustee, the
Depositor, the Master Servicer and the Seller certifications (in the forms
attached to the Custodial Agreement) with respect to such review with exceptions
noted thereon. In addition, the Depositor under the Custodial Agreement will
have to cure certain defects with respect to the Loan Documents for the related
Loans after the delivery thereof by the Depositor to the Custodian as more
particularly set forth therein.

         Section 2.2 ACCEPTANCE BY TRUSTEE.

         The Trustee acknowledges receipt, subject to the provisions of Section
2.1 hereof and Section 2 of the Custodial Agreement, of the Loan Documents and
all other assets included in the definition of "REMIC I" under clauses (i),
(iii), (iv) and (v) (to the extent of amounts deposited into the Distribution
Account) and declares that it holds (or the Custodian on its behalf holds) and
will hold such documents and the other documents delivered to it constituting a
Loan Document, and that it holds (or the Custodian on its behalf holds) or will
hold all such assets and such other assets included in the definition of "REMIC
I" in trust for the exclusive use and benefit of all present and future
Certificateholders.

         Section 2.3 REPURCHASE OR SUBSTITUTION OF LOANS.

                  (a) Upon discovery or receipt of notice of any materially
defective document in, or that a document is missing from, a Mortgage File or of
a breach by the Seller of any representation, warranty or covenant under the
Mortgage Loan Purchase Agreement in respect of any Loan that materially and
adversely affects the value of such Loan or the interest therein of the
Certificateholders, the Trustee shall promptly notify the Seller of such defect,
missing document or breach and request that the Seller deliver such missing
document, cure such defect

                                      -43-
<PAGE>

or breach within 60 days from the date the Seller was notified of such missing
document, defect or breach, and if the Seller does not deliver such missing
document or cure such defect or breach in all material respects during such
period, the Trustee shall enforce the obligations of the Seller under the
Mortgage Loan Purchase Agreement to repurchase such Loan from REMIC I at the
Purchase Price within 90 days after the date on which the Seller was notified of
such missing document, defect or breach, if and to the extent that the Seller is
obligated to do so under the Mortgage Loan Purchase Agreement. The Purchase
Price for the repurchased Loan shall be deposited in the Distribution Account
and the Trustee, upon receipt of written certification from the Securities
Administrator of such deposit and receipt by the Custodian of a properly
completed request for release for such Loan in the form of Exhibit 3 to the
Custodial Agreement, shall release or cause the Custodian to release to the
Seller the related Mortgage File and the Trustee shall execute and deliver such
instruments of transfer or assignment, in each case without recourse,
representation or warranty, as the Seller shall furnish to it and as shall be
necessary to vest in the Seller any Loan released pursuant hereto, and the
Trustee shall not have any further responsibility with regard to such Mortgage
File. In lieu of repurchasing any such Loan as provided above, if so provided in
the Mortgage Loan Purchase Agreement, the Seller may cause such Loan to be
removed from REMIC I (in which case it shall become a Deleted Loan) and
substitute one or more Substitute Loans in the manner and subject to the
limitations set forth in Section 2.3(b). It is understood and agreed that the
obligation of the Seller to cure or to repurchase (or to substitute for) any
Loan as to which a document is missing, a material defect in a constituent
document exists or as to which such a breach has occurred and is continuing
shall constitute the sole remedy respecting such omission, defect or breach
available to the Trustee and the Certificateholders.

                  In addition, promptly upon the earlier of discovery by the
Master Servicer or receipt of notice by a Responsible Officer of the Master
Servicer of the breach of the representation or covenant of the Seller set forth
in Section 5(x) of the Mortgage Loan Purchase Agreement which materially and
adversely affects the interests of the Holders of the Class P Certificates in
any Prepayment Charge, the Master Servicer shall promptly notify the Seller and
the Trustee of such breach. The Trustee shall enforce the obligations of the
Seller under the Mortgage Loan Purchase Agreement to remedy such breach to the
extent and in the manner set forth in the Mortgage Loan Purchase Agreement.

                  (b) Any substitution of Substitute Loans for Deleted Loans
made pursuant to Section 2.3(a) must be effected prior to the date which is two
years after the Startup Day for the REMIC I.

                  As to any Deleted Loan for which the Seller, substitutes a
Substitute Loan or Loans, such substitution shall be effected by the Seller
delivering to the Trustee or the Custodian on behalf of the Trustee, for such
Substitute Loan or Loans, the Mortgage Note, the Mortgage, the Assignment to the
Trustee, and such other documents and agreements, with all necessary
endorsements thereon, as are required by Section 2 of the Custodial Agreement,
as applicable, together with an Officers' Certificate providing that each such
Substitute Loan satisfies the definition thereof and specifying the Substitution
Shortfall Amount (as described below), if any, in connection with such
substitution. The Custodian on behalf of the Trustee shall acknowledge receipt
of such Substitute Loan or Loans and, within ten Business Days thereafter,
review such documents and deliver to the Depositor, the Trustee and the Master
Servicer, with respect to such

                                      -44-
<PAGE>

Substitute Loan or Loans, an initial certification pursuant to the Custodial
Agreement, with any applicable exceptions noted thereon. Within one year of the
date of substitution, the Custodian on behalf of the Trustee shall deliver to
the Depositor, the Trustee and the Master Servicer a final certification
pursuant to the Custodial Agreement with respect to such Substitute Loan or
Loans, with any applicable exceptions noted thereon. Monthly Payments due with
respect to Substitute Loans in the month of substitution are not part of REMIC I
and shall be retained by the Seller. For the month of substitution,
distributions to Certificateholders shall reflect the Monthly Payment due on
such Deleted Loan on or before the Due Date in the month of substitution, and
the Seller shall thereafter be entitled to retain all amounts subsequently
received in respect of such Deleted Loan. The Depositor shall give or cause to
be given written notice to the Certificateholders that such substitution has
taken place, shall amend the Loan Schedule to reflect the removal of such
Deleted Loan from the terms of this Agreement and the substitution of the
Substitute Loan or Loans and shall deliver a copy of such amended Loan Schedule
to the Trustee and the Master Servicer. Upon such substitution, such Substitute
Loan or Loans shall constitute part of the Trust Fund and shall be subject in
all respects to the terms of this Agreement and the Mortgage Loan Purchase
Agreement including all applicable representations and warranties thereof
included herein or in the Mortgage Loan Purchase Agreement.

                  For any month in which the Seller substitutes one or more
Substitute Loans for one or more Deleted Loans, the Master Servicer shall
determine the amount (the "Substitution Shortfall Amount"), if any, by which the
aggregate Purchase Price of all such Deleted Loans exceeds the aggregate of, as
to each such Substitute Loan, the Scheduled Principal Balance thereof as of the
Due Date in the month of substitution, together with one month's interest on
such Scheduled Principal Balance at the applicable Net Mortgage Rate, plus all
outstanding Advances and Servicing Advances (including Nonrecoverable Advances)
related thereto. On the date of such substitution, the Seller shall deliver or
cause to be delivered to the Securities Administrator for deposit in the
Distribution Account an amount equal to the Substitution Shortfall Amount, if
any, and the Trustee or the Custodian on behalf of the Trustee, upon receipt of
the related Substitute Loan or Loans and certification by the Securities
Administrator of such deposit and receipt by the Custodian of a properly
completed request for release for such Loan in the form of Exhibit 3 to the
Custodial Agreement, shall release to the Seller the related Mortgage File or
Files and the Trustee shall execute and deliver such instruments of transfer or
assignment, in each case without recourse, representation or warranty, as the
Seller shall deliver to it and as shall be necessary to vest therein any Deleted
Loan released pursuant hereto.

                  In addition, the Seller shall obtain at its own expense and
deliver to the Trustee an Opinion of Counsel to the effect that such
substitution will not cause (a) any federal tax to be imposed on any REMIC,
including without limitation, any federal tax imposed on "prohibited
transactions" under Section 860F(a)(1) of the Code or on "contributions after
the startup date" under Section 860G(d)(1) of the Code, or (b) any REMIC to fail
to qualify as a REMIC at any time that any Certificate is outstanding.

                  (c) Upon discovery by the Depositor, the Seller, the Master
Servicer or the Trustee that any Loan does not constitute a "qualified mortgage"
within the meaning of Section 860G(a)(3) of the Code, the party discovering such
fact shall within two Business Days give written notice thereof to the other
parties. In connection therewith, the Seller shall repurchase or substitute one
or more Substitute Loans for the affected Loan within 90 days of the earlier of

                                      -45-
<PAGE>

discovery or receipt of such notice with respect to such affected Loan. Such
repurchase or substitution shall be made by (i) the Seller, if the affected
Loan's status as a non-qualified mortgage is or results from a breach of any
representation, warranty or covenant made by the Seller under the Mortgage Loan
Purchase Agreement or (ii) the Depositor, if the affected Loan's status as a
non-qualified mortgage does not result from a breach of representation or
warranty. Any such repurchase or substitution shall be made in the same manner
as set forth in Section 2.3(a). The Trustee shall reconvey to the Seller or the
Depositor the Loan to be released pursuant hereto in the same manner, and on the
same terms and conditions, as it would a Loan repurchased for breach of a
representation or warranty.

                  (d) Within 90 days of the earlier of discovery by the Master
Servicer or receipt of notice by the Master Servicer of the breach of any
representation, warranty or covenant of the Master Servicer set forth in Section
2.5 which materially and adversely affects the interests of the
Certificateholders in any Loan or Prepayment Charge, the Master Servicer shall
cure such breach in all material respects.

         Section 2.4 AUTHENTICATION AND DELIVERY OF CERTIFICATES; DESIGNATION OF
CERTIFICATES AS REMIC REGULAR AND RESIDUAL INTERESTS.

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

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

         Section 2.5 REPRESENTATIONS AND WARRANTIES OF THE MASTER SERVICER.

         The Master Servicer hereby represents, warrants and covenants to the
Trustee, for the benefit of each of the Trustee, the Certificateholders and the
Depositor that as of the Closing Date or as of such date specifically provided
herein:

                  (i) The Master Servicer is a national banking association duly
         formed, validly existing and in good standing under the laws of the
         United States of America and is duly authorized and qualified to
         transact any and all business contemplated by this Agreement to be
         conducted by the Master Servicer;

                                      -46-
<PAGE>

                  (ii) The Master Servicer has the full power and authority to
         conduct its business as presently conducted by it and to execute,
         deliver and perform, and to enter into and consummate, all transactions
         contemplated by this Agreement. The Master Servicer has duly authorized
         the execution, delivery and performance of this Agreement, has duly
         executed and delivered this Agreement, and this Agreement, assuming due
         authorization, execution and delivery by the Depositor and the Trustee,
         constitutes a legal, valid and binding obligation of the Master
         Servicer, enforceable against it in accordance with its terms except as
         the enforceability thereof may be limited by bankruptcy, insolvency,
         reorganization or similar laws affecting the enforcement of creditors'
         rights generally and by general principles of equity;

                  (iii) The execution and delivery of this Agreement by the
         Master Servicer, the consummation by the Master Servicer of any other
         of the transactions herein contemplated, and the fulfillment of or
         compliance with the terms hereof are in the ordinary course of business
         of the Master Servicer and will not (A) result in a breach of any term
         or provision of charter and by-laws of the Master Servicer or (B)
         conflict with, result in a breach, violation or acceleration of, or
         result in a default under, the terms of any other material agreement or
         instrument to which the Master Servicer is a party or by which it may
         be bound, or any statute, order or regulation applicable to the Master
         Servicer of any court, regulatory body, administrative agency or
         governmental body having jurisdiction over the Master Servicer; and the
         Master Servicer is not a party to, bound by, or in breach or violation
         of any indenture or other agreement or instrument, or subject to or in
         violation of any statute, order or regulation of any court, regulatory
         body, administrative agency or governmental body having jurisdiction
         over it, which materially and adversely affects or, to the Master
         Servicer's knowledge, would in the future materially and adversely
         affect, (x) the ability of the Master Servicer to perform its
         obligations under this Agreement or (y) the business, operations,
         financial condition, properties or assets of the Master Servicer taken
         as a whole;

                  (iv) The Master Servicer does not believe, nor does it have
         any reason or cause to believe, that it cannot perform each and every
         covenant made by it and contained in this Agreement;

                  (v) No litigation is pending against the Master Servicer that
         would materially and adversely affect the execution, delivery or
         enforceability of this Agreement or the ability of the Master Servicer
         to perform any of its other obligations hereunder in accordance with
         the terms hereof,

                  (vi) There are no actions or proceedings against, or
         investigations known to it of, the Master Servicer before any court,
         administrative or other tribunal (A) that might prohibit its entering
         into this Agreement, (B) seeking to prevent the consummation of the
         transactions contemplated by this Agreement or (C) that might prohibit
         or materially and adversely affect the performance by the Master
         Servicer of its obligations under, or validity or enforceability of,
         this Agreement; and

                  (vii) No consent, approval, authorization or order of any
         court or governmental agency or body is required for the execution,
         delivery and performance by the Master

                                      -47-
<PAGE>

         Servicer of, or compliance by the Master Servicer with, this Agreement
         or the consummation by it of the transactions contemplated by this
         Agreement, except for such consents, approvals, authorizations or
         orders, if any, that have been obtained prior to the Closing Date.

         It is understood and agreed that the representations, warranties and
covenants set forth in this Section 2.5 shall inure to the benefit of the
Trustee, the Depositor and the Certificateholders.

         Section 2.6 ESTABLISHMENT OF THE TRUST.

         The Depositor does hereby establish, pursuant to the further provisions
of this Agreement and the laws of the State of New York, an express trust to be
known, for convenience, as "Deutsche Alt-A Securities, Inc., Mortgage Loan
Trust, Series 2003-2XS" and does hereby appoint HSBC Bank USA, as Trustee in
accordance with the provisions of this Agreement.

                                      -48-
<PAGE>

                                  ARTICLE III
               ADMINISTRATION AND SERVICING OF THE LOANS; ACCOUNTS

         Section 3.1 MASTER SERVICER. The Master Servicer shall supervise,
monitor and oversee the obligation of the Servicers to service and administer
their respective Loans in accordance with the terms of the applicable Servicing
Agreement and shall have full power and authority to do any and all things which
it may deem necessary or desirable in connection with such master servicing and
administration. In performing its obligations hereunder, the Master Servicer
shall act in a manner consistent with Accepted Master Servicing Practices.
Furthermore, the Master Servicer shall oversee and consult with each Servicer as
necessary from time-to-time to carry out the Master Servicer's obligations
hereunder, shall receive, review and evaluate all reports, information and other
data provided to the Master Servicer by each Servicer and shall cause each
Servicer to perform and observe the covenants, obligations and conditions to be
performed or observed by such Servicer under the applicable Servicing Agreement.
The Master Servicer shall independently and separately monitor each Servicer's
servicing activities with respect to each related Loan, reconcile the results of
such monitoring with such information provided in the previous sentence on a
monthly basis and coordinate corrective adjustments to the Servicers' and Master
Servicer's records, and based on such reconciled and corrected information,
prepare the statements specified in Section 4.3 and any other information and
statements required to be provided by the Master Servicer hereunder. The Master
Servicer shall reconcile the results of its Loan monitoring with the actual
remittances of the Servicers to the Distribution Account pursuant to the
applicable Servicing Agreements.

         Notwithstanding anything in this Agreement or any Servicing Agreement
to the contrary, the Master Servicer shall not have any duty or obligation to
enforce any Credit Risk Management Agreement that a Servicer is a party to (a
"Servicer Credit Risk Management Agreement") or to supervise, monitor or oversee
the activities of the Credit Risk Manager under any such Servicer Credit Risk
Management Agreement with respect to any action taken or not taken by the
applicable Servicer pursuant to a recommendation of the Credit Risk Manager.

         The Trustee shall furnish the Servicers and the Master Servicer with
any limited powers of attorney and other documents in form as provided to it
necessary or appropriate to enable the Servicers and the Master Servicer to
service or master service and administer the related Loans and REO Property. The
Trustee shall have no responsibility for any action of the Master Servicer or
any Servicer pursuant to any such limited power of attorney and shall be
indemnified by the Master Servicer or such Servicer for any cost, liability or
expense arising from the misuse thereof by the Master Servicer or such Servicer.

         The Trustee, the Custodian and the Securities Administrator shall
provide access to the records and documentation in possession of the Trustee,
the Custodian or the Securities Administrator regarding the related Loans and
REO Property and the servicing thereof to the Certificateholders, the FDIC, and
the supervisory agents and examiners of the FDIC, such access being afforded
only upon reasonable prior written request and during normal business hours at
the office of the Trustee, the Custodian or the Securities Administrator;
provided, however, that, unless otherwise required by law, none of the Trustee,
the Custodian or the Securities Administrator shall be required to provide
access to such records and documentation if the

                                      -49-
<PAGE>

provision thereof would violate the legal right to privacy of any Mortgagor. The
Trustee, the Custodian and the Securities Administrator shall allow
representatives of the above entities to photocopy any of the records and
documentation and shall provide equipment for that purpose at a charge that
covers the Trustee's, the Custodian's or the Securities Administrator's actual
costs.

         The Trustee shall execute and deliver to the related Servicer or the
Master Servicer upon request any court pleadings, requests for trustee's sale or
other documents necessary or desirable and, in each case, provided to the
Trustee by such Servicer or Master Servicer to (i) the foreclosure or trustee's
sale with respect to a Mortgaged Property; (ii) any legal action brought to
obtain judgment against any Mortgagor on the Mortgage Note or any other Loan
Document; (iii) obtain a deficiency judgment against the Mortgagor; or (iv)
enforce any other rights or remedies provided by the Mortgage Note or any other
Loan Document or otherwise available at law or equity.

         Section 3.2 REMIC-RELATED COVENANTS. For as long as each REMIC shall
exist, the Trustee and the Securities Administrator shall treat such REMIC as a
REMIC, and the Trustee and the Securities Administrator shall comply with any
directions of the Seller, the related Servicer or the Master Servicer to assure
such continuing treatment. In particular, the Trustee shall not (a) sell or
permit the sale of all or any portion of the Loans or of any investment of
deposits in an Account unless such sale is as a result of a repurchase of the
Loans pursuant to this Agreement or the Trustee has received an Opinion of
Counsel stating that such sale will not result in an Adverse REMIC Event as
defined in Section 10.1(f) hereof prepared at the expense of the Trust Fund; and
(b) other than with respect to a substitution pursuant to the Mortgage Loan
Purchase Agreements, the Assignment Agreements or Section 2.3 of this Agreement,
as applicable, accept any contribution to any REMIC after the Startup Day
without receipt of an Opinion of Counsel stating that such contribution will not
result in an Adverse REMIC Event as defined in Section 10.1(f) hereof.

         Section 3.3 MONITORING OF SERVICERS.

                  (a) The Master Servicer shall be responsible for monitoring
the compliance by each Servicer with its duties under the related Servicing
Agreement. In the review of each Servicer's activities, the Master Servicer may
rely upon an officer's certificate of any Servicer with regard to such
Servicer's compliance with the terms of its Servicing Agreement. In the event
that the Master Servicer, in its judgment, determines that a Servicer should be
terminated in accordance with its Servicing Agreement, or that a notice should
be sent pursuant to such Servicing Agreement with respect to the occurrence of
an event that, unless cured, would constitute grounds for such termination, the
Master Servicer shall notify the Seller and the Trustee thereof and the Master
Servicer shall issue such notice or take such other action as it deems
appropriate.

                  (b) The Master Servicer, for the benefit of the Trustee and
the Certificateholders, shall enforce the obligations of each Servicer under the
related Servicing Agreement, and shall, in the event that a Servicer fails to
perform its obligations in accordance with the related Servicing Agreement,
subject to the preceding paragraph, terminate the rights and obligations of such
Servicer thereunder and act as servicer of the related Loans or to cause the
Trustee to enter in to a new Servicing Agreement with a successor Servicer
selected by the

                                      -50-
<PAGE>

Master Servicer; provided, however, it is understood and acknowledged by the
parties hereto that there will be a period of transition (not to exceed 90 days)
before the actual servicing functions can be fully transferred to such successor
Servicer. Such enforcement, including, without limitation, the legal prosecution
of claims, termination of Servicing Agreements and the pursuit of other
appropriate remedies, shall be in such form and carried out to such an extent
and at such time as the Master Servicer, in its good faith business judgment,
would require were it the owner of the related Loans. The Master Servicer shall
pay the costs of such enforcement at its own expense, provided that the Master
Servicer shall not be required to prosecute or defend any legal action except to
the extent that the Master Servicer shall have received reasonable indemnity for
its costs and expenses in pursuing such action.

                  (c) To the extent that the costs and expenses of the Master
Servicer related to any termination of a Servicer, appointment of a successor
Servicer or the transfer and assumption of servicing by the Master Servicer with
respect to any Servicing Agreement (including, without limitation, (i) all legal
costs and expenses and all due diligence costs and expenses associated with an
evaluation of the potential termination of the Servicer as a result of an event
of default by such Servicer and (ii) all costs and expenses associated with the
complete transfer of servicing, including all servicing files and all servicing
data and the completion, correction or manipulation of such servicing data as
may be required by the successor servicer to correct any errors or
insufficiencies in the servicing data or otherwise to enable the successor
servicer to service the Loans in accordance with the related Servicing
Agreement) are not fully and timely reimbursed by the terminated Servicer, the
Master Servicer shall be entitled to reimbursement of such costs and expenses
from the Distribution Account.

                  (d) The Master Servicer shall require each Servicer to comply
with the remittance requirements and other obligations set forth in the related
Servicing Agreement.

                  (e) If the Master Servicer acts as Servicer, it shall not
assume liability for the representations and warranties of the Servicer, if any,
that it replaces.

         Section 3.4 FIDELITY BOND. The Master Servicer, at its expense, shall
maintain in effect a blanket fidelity bond and an errors and omissions insurance
policy that would meet the requirements of Fannie Mae or Freddie Mac, affording
coverage with respect to all directors, officers, employees and other Persons
acting on such Master Servicer's behalf, and covering errors and omissions in
the performance of the Master Servicer's obligations hereunder. The errors and
omissions insurance policy and the fidelity bond shall be in such form and
amount generally acceptable for entities serving as master servicers or
trustees.

         Section 3.5 POWER TO ACT; PROCEDURES. The Master Servicer shall master
service the Loans and shall have full power and authority, subject to the REMIC
Provisions and the provisions of Article X hereof, to do any and all things that
it may deem necessary or desirable in connection with the master servicing and
administration of the Loans, including but not limited to the power and
authority (i) to execute and deliver, on behalf of the Certificateholders and
the Trustee, customary consents or waivers and other instruments and documents,
(ii) to consent to transfers of any Mortgaged Property and assumptions of the
Mortgage Notes and related Mortgages, (iii) to collect any Insurance Proceeds
and Liquidation Proceeds, and (iv) to effectuate foreclosure or other conversion
of the ownership of the Mortgaged Property securing

                                      -51-
<PAGE>

any Loan, in each case, in accordance with the provisions of this Agreement and
the related Servicing Agreement, as applicable; provided, however, that the
Master Servicer shall not (and, consistent with its responsibilities under
Section 3.3, shall not permit any Servicer to) knowingly or intentionally take
any action, or fail to take (or fail to cause to be taken) any action reasonably
within its control and the scope of duties more specifically set forth herein,
that, under the REMIC Provisions, if taken or not taken, as the case may be,
would cause REMIC I, REMIC II or REMIC III to fail to qualify as a REMIC or
result in the imposition of a tax upon the Trust Fund (including but not limited
to the tax on prohibited transactions as defined in Section 860F(a)(2) of the
Code and the tax on contributions to a REMIC set forth in Section 860G(d) of the
Code) unless the Master Servicer has received an Opinion of Counsel (but not at
the expense of the Master Servicer) to the effect that the contemplated action
will not cause REMIC I, REMIC II or REMIC III to fail to qualify as a REMIC or
result in the imposition of a tax upon REMIC I, REMIC II or REMIC III, as the
case may be. The Trustee shall furnish the Master Servicer, upon written request
from a Servicing Officer, with any powers of attorney empowering the Master
Servicer or any Servicer to execute and deliver instruments of satisfaction or
cancellation, or of partial or full release or discharge, and to foreclose upon
or otherwise liquidate Mortgaged Property, and to appeal, prosecute or defend in
any court action relating to the Loans or the Mortgaged Property, in accordance
with the applicable Servicing Agreement and this Agreement, and the Trustee
shall execute and deliver such other documents, as the Master Servicer or
applicable Servicer may request, to enable the Master Servicer to master service
and administer the Loans and carry out its duties hereunder, in each case in
accordance with Accepted Master Servicing Practices (and the Trustee shall have
no liability for the misuse of any such powers of attorney by the Master
Servicer or any Servicer and shall be indemnified by the Master Servicer or such
Servicer for any costs, liabilities or expenses incurred by the Trustee in
connection with such misuse). If the Master Servicer or the Trustee has been
advised that it is likely that the laws of the state in which action is to be
taken prohibit such action if taken in the name of the Trustee or that the
Trustee would be adversely affected under the "doing business" or tax laws of
such state if such action is taken in its name, the Master Servicer shall join
with the Trustee in the appointment of a co-trustee pursuant to Section 8.10
hereof. In the performance of its duties hereunder, the Master Servicer shall be
an independent contractor and shall not, except in those instances where it is
taking action authorized pursuant to this Agreement to be taken by it in the
name of the Trustee, be deemed to be the agent of the Trustee.

         Section 3.6 DUE-ON-SALE CLAUSES; ASSUMPTION AGREEMENTS. To the extent
provided in the applicable Servicing Agreement and to the extent Loans contain
enforceable due-on-sale clauses, the Master Servicer shall cause the Servicers
to enforce such clauses in accordance with the applicable Servicing Agreement.
If applicable law prohibits the enforcement of a due-on-sale clause or such
clause is otherwise not enforced in accordance with the applicable Servicing
Agreement, and, as a consequence, a Loan is assumed, the original Mortgagor may
be released from liability in accordance with the applicable Servicing
Agreement.

         Section 3.7 RELEASE OF MORTGAGE FILES.

                  (a) Upon becoming aware of the payment in full of any Loan, or
the receipt by any Servicer of a notification that payment in full has been
escrowed in a manner customary for such purposes for payment to
Certificateholders on the next Distribution Date, the applicable

                                      -52-
<PAGE>

Servicer will (or if the Servicer does not, the Master Servicer may), if
required under the applicable Servicing Agreement, promptly furnish to the
Custodian, on behalf of the Trustee, two copies of a request for release
substantially in the form attached to the Custodial Agreement, and signed by a
Servicing Officer or in a mutually agreeable electronic format which will, in
lieu of a signature on its face, originate from a Servicing Officer (which
certification shall include a statement to the effect that all amounts received
in connection with such payment that are required to be deposited in the
Protected Account maintained by the applicable Servicer pursuant to its
Servicing Agreement have been or will be so deposited) and shall request that
the Custodian, on behalf of the Trustee, deliver to the applicable Servicer the
related Mortgage File. Upon receipt of such certification and request, the
Custodian, on behalf of the Trustee, shall promptly release the related Mortgage
File to the applicable Servicer and the Trustee and Custodian shall have no
further responsibility with regard to such Mortgage File. Upon any such payment
in full, each Servicer is authorized to give, as agent for the Trustee, as the
mortgagee under the Mortgage that secured the Loan, an instrument of
satisfaction (or assignment of mortgage without recourse) regarding the
Mortgaged Property subject to the Mortgage, which instrument of satisfaction or
assignment, as the case may be, shall be delivered to the Person or Persons
entitled thereto against receipt therefor of such payment, it being understood
and agreed that no expenses incurred in connection with such instrument of
satisfaction or assignment, as the case may be, shall be chargeable to the
Distribution Account.

                  (b) From time to time and as appropriate for the servicing or
foreclosure of any Loan and in accordance with the applicable Servicing
Agreement, the Trustee shall execute such documents as shall be prepared and
furnished to the Trustee by a Servicer or the Master Servicer (in form
reasonably acceptable to the Trustee) and as are necessary to the prosecution of
any such proceedings. The Custodian, on behalf of the Trustee, shall, upon the
request of a Servicer or the Master Servicer, and delivery to the Custodian, on
behalf of the Trustee, of two copies of a request for release signed by a
Servicing Officer substantially in the form attached to the Custodial Agreement
(or in a mutually agreeable electronic format which will, in lieu of a signature
on its face, originate from a Servicing Officer), release the related Mortgage
File held in its possession or control to the Servicer or the Master Servicer,
as applicable. Such request for release shall obligate the Servicer or the
Master Servicer to return the Mortgage File to the Custodian on behalf of the
Trustee, when the need therefor by the Servicer or the Master Servicer no longer
exists unless the Loan shall be liquidated, in which case, upon receipt of a
certificate of a Servicing Officer similar to that hereinabove specified, the
Mortgage File shall be released by the Custodian, on behalf of the Trustee, to
the Servicer or the Master Servicer.

         Section 3.8 DOCUMENTS, RECORDS AND FUNDS IN POSSESSION OF MASTER
SERVICER TO BE HELD FOR TRUSTEE.

                  (a) The Master Servicer shall transmit and each Servicer (to
the extent required by the related Servicing Agreement) shall transmit to the
Trustee or Custodian such documents and instruments coming into the possession
of the Master Servicer or such Servicer from time to time as are required by the
terms hereof, or in the case of the Servicers, the applicable Servicing
Agreement, to be delivered to the Trustee or Custodian. Any funds received by
the Master Servicer or by a Servicer in respect of any Loan or which otherwise
are collected by the Master Servicer or by a Servicer as Liquidation Proceeds or
Insurance Proceeds in respect of any Loan shall be held for the benefit of the
Trustee and the Certificateholders subject to the

                                      -53-
<PAGE>

Master Servicer's right to retain or withdraw from the Distribution Account the
Master Servicing Compensation and other amounts provided in this Agreement, and
to the right of each Servicer to retain its Servicing Fee and other amounts as
provided in the applicable Servicing Agreement. The Master Servicer shall, and
(to the extent provided in the applicable Servicing Agreement) shall cause each
Servicer to, provide access to information and documentation regarding the Loans
to the Trustee, its agents and accountants at any time upon reasonable request
and during normal business hours, and to Certificateholders that are savings and
loan associations, banks or insurance companies, the OTS, the FDIC and the
supervisory agents and examiners of such Office and Corporation or examiners of
any other federal or state banking or insurance regulatory authority if so
required by applicable regulations of the OTS or other regulatory authority,
such access to be afforded without charge but only upon reasonable request in
writing and during normal business hours at the offices of the Master Servicer
designated by it. In fulfilling such a request the Master Servicer shall not be
responsible for determining the sufficiency of such information.

                  (b) All Mortgage Files and funds collected or held by, or
under the control of, the Master Servicer, in respect of any Loans, whether from
the collection of principal and interest payments or from Liquidation Proceeds
or Insurance Proceeds, shall be held by the Master Servicer for and on behalf of
the Trustee and the Certificateholders and shall be and remain the sole and
exclusive property of the Trustee; provided, however, that the Master Servicer
and each Servicer shall be entitled to setoff against, and deduct from, any such
funds any amounts that are properly due and payable to the Master Servicer or
such Servicer under this Agreement or the applicable Servicing Agreement.

         Section 3.9 STANDARD HAZARD INSURANCE AND FLOOD INSURANCE POLICIES.

                  (a) For each Loan, the Master Servicer shall enforce any
obligation of the Servicers under the related Servicing Agreements to maintain
or cause to be maintained standard fire and casualty insurance and, where
applicable, flood insurance, all in accordance with the provisions of the
related Servicing Agreements. It is understood and agreed that such insurance
shall be with insurers meeting the eligibility requirements set forth in the
applicable Servicing Agreement and that no earthquake or other additional
insurance is to be required of any Mortgagor or to be maintained on property
acquired in respect of a defaulted loan, other than pursuant to such applicable
laws and regulations as shall at any time be in force and as shall require such
additional insurance.

                  (b) Pursuant to Section 3.23, any amounts collected by the
Master Servicer, or by any Servicer, under any insurance policies (other than
amounts to be applied to the restoration or repair of the property subject to
the related Mortgage or released to the Mortgagor in accordance with the
applicable Servicing Agreement) shall be deposited into the Distribution
Account, subject to withdrawal pursuant to Section 3.24. Any cost incurred by
the Master Servicer or any Servicer in maintaining any such insurance if the
Mortgagor defaults in its obligation to do so shall be added to the amount owing
under the Loan where the terms of the Loan so permit; provided, however, that
the addition of any such cost shall not be taken into account for purposes of
calculating the distributions to be made to Certificateholders and shall be
recoverable by the Master Servicer or such Servicer pursuant to Section 3.24.

                                      -54-
<PAGE>

         Section 3.10 PRESENTMENT OF CLAIMS AND COLLECTION OF PROCEEDS. The
Master Servicer shall (to the extent provided in the applicable Servicing
Agreement) cause the related Servicer to, prepare and present on behalf of the
Trustee and the Certificateholders all claims under any insurance policies and
take such actions (including the negotiation, settlement, compromise or
enforcement of the insured's claim) as shall be necessary to realize recovery
under such policies. Any proceeds disbursed to the Master Servicer (or disbursed
to a Servicer and remitted to the Master Servicer) in respect of such policies,
bonds or contracts shall be promptly deposited in the Distribution Account upon
receipt, except that any amounts realized that are to be applied to the repair
or restoration of the related Mortgaged Property as a condition precedent to the
presentation of claims on the related Loan to the insurer under any applicable
insurance policy need not be so deposited (or remitted).

         Section 3.11 MAINTENANCE OF THE PRIMARY MORTGAGE INSURANCE POLICIES.

                  (a) The Master Servicer shall not take, or permit any Servicer
(to the extent such action is prohibited under the applicable Servicing
Agreement) to take, any action that would result in noncoverage under any
primary mortgage insurance policy of any loss which, but for the actions of such
Master Servicer or Servicer, would have been covered thereunder. The Master
Servicer shall use its best reasonable efforts to cause each Servicer (to the
extent required under the related Servicing Agreement) to keep in force and
effect (to the extent that the Loan requires the Mortgagor to maintain such
insurance), primary mortgage insurance applicable to each Loan (including any
LPMI Policy) in accordance with the provisions of this Agreement and the related
Servicing Agreement, as applicable. The Master Servicer shall not, and shall not
permit any Servicer (to the extent required under the related Servicing
Agreement) to, cancel or refuse to renew any primary mortgage insurance policy
that is in effect at the date of the initial issuance of the Mortgage Note and
is required to be kept in force hereunder except in accordance with the
provisions of this Agreement and the related Servicing Agreement, as applicable.

                  (b) The Master Servicer agrees to cause each Servicer (to the
extent required under the related Servicing Agreement) to present, on behalf of
the Trustee and the Certificateholders, claims to the insurer under any primary
mortgage insurance policies and, in this regard, to take such reasonable action
as shall be necessary to permit recovery under any primary mortgage insurance
policies respecting defaulted Loans. Pursuant to Section 3.22 and 3.23, any
amounts collected by the Master Servicer or any Servicer under any primary
mortgage insurance policies shall be deposited by the related Servicer in its
Protected Account or by the Master Servicer in the Distribution Account, subject
to withdrawal pursuant to Sections 3.22 or 3.24, as applicable.

         Section 3.12 TRUSTEE TO RETAIN POSSESSION OF CERTAIN INSURANCE POLICIES
AND DOCUMENTS.

                  The Trustee or the applicable Custodian, shall retain
possession and custody of the originals (to the extent available) of any primary
mortgage insurance policies, or certificate of insurance if applicable, and any
certificates of renewal as to the foregoing as may be issued from time to time
as contemplated by this Agreement. Until all amounts distributable in respect of
the Certificates has been distributed in full and the Master Servicer otherwise
has fulfilled its obligations under this Agreement, the Trustee or the Custodian
shall also retain possession and

                                      -55-
<PAGE>

custody of each Mortgage File in accordance with and subject to the terms and
conditions of this Agreement and the Custodial Agreement. The Master Servicer
shall promptly deliver or cause to be delivered to the Trustee or the Custodian,
upon the execution or receipt thereof the originals of any primary mortgage
insurance policies, any certificates of renewal, and such other documents or
instruments that constitute Loan Documents that come into the possession of the
Master Servicer from time to time.

         Section 3.13 REALIZATION UPON DEFAULTED LOANS. The Master Servicer
shall cause each Servicer (to the extent required under the related Servicing
Agreement) to foreclose upon, repossess or otherwise comparably convert the
ownership of Mortgaged Properties securing such of the Loans as come into and
continue in default and as to which no satisfactory arrangements can be made for
collection of delinquent payments, all in accordance with the applicable
Servicing Agreement.

         Section 3.14 COMPENSATION FOR THE MASTER SERVICER.

                  (a) In addition to the Master Servicer's right to receive its
Master Servicing Fee, all income and gain realized from any investment of funds
in the Distribution Account shall be for the benefit of the Master Servicer as
compensation. Servicing compensation in the form of assumption fees, if any,
late payment charges, as collected, if any, or otherwise (but not including any
Prepayment Charges) shall be retained by the applicable Servicer and shall not
be deposited in the Protected Account. The Master Servicer shall be required to
pay all expenses incurred by it in connection with its activities hereunder and
shall not be entitled to reimbursement therefor except as provided in this
Agreement.

                  (b) The amount of the aggregate compensation payable as set
forth in Section 3.14(a) (the "Master Servicing Compensation") to the Master
Servicer in respect of any Distribution Date shall be reduced in accordance with
Section 3.20.

         Section 3.15 REO PROPERTY.

                  (a) In the event the Trust Fund acquires ownership of any REO
Property in respect of any related Loan, the deed or certificate of sale shall
be issued to the Trustee, or to its nominee, on behalf of the related
Certificateholders. The Master Servicer shall, to the extent provided in the
applicable Servicing Agreement, cause the applicable Servicer to sell any REO
Property as expeditiously as possible and in accordance with the provisions of
this Agreement and the related Servicing Agreement, as applicable. Further, the
Master Servicer shall, to the extent provided in the related Servicing
Agreement, cause the applicable Servicer to sell any REO Property prior to three
years after the end of the calendar year of its acquisition by REMIC I unless
(i) the Trustee shall have been supplied with an Opinion of Counsel to the
effect that the holding by the Trust Fund of such REO Property subsequent to
such three-year period will not result in the imposition of taxes on "prohibited
transactions" of any REMIC hereunder as defined in section 860F of the Code or
cause any REMIC hereunder to fail to qualify as a REMIC at any time that any
Certificates are outstanding, in which case the Trust Fund may continue to hold
such Mortgaged Property (subject to any conditions contained in such Opinion of
Counsel) or (ii) the applicable Servicer shall have applied for, prior to the
expiration of such three-year period, an extension of such three-year period in
the manner contemplated by Section 856(e)(3) of the Code, in which case the
three-year period shall be extended by the applicable extension period.

                                      -56-
<PAGE>

The Master Servicer shall cause the applicable Servicer (to the extent provided
in the related Servicing Agreement) to protect and conserve, such REO Property
in the manner and to the extent required by the applicable Servicing Agreement,
in accordance with the REMIC Provisions and in a manner that does not result in
a tax on "net income from foreclosure property" or cause such REO Property to
fail to qualify as "foreclosure property" within the meaning of Section
860G(a)(8) of the Code.

                  (b) The Master Servicer shall, to the extent required by the
related Servicing Agreement, cause the applicable Servicer to deposit all funds
collected and received in connection with the operation of any REO Property in
the Protected Account.

                  (c) The Master Servicer and the applicable Servicer, upon the
final disposition of any REO Property, shall be entitled to reimbursement for
any related unreimbursed Advances and other unreimbursed advances as well as any
unpaid Servicing Fees from Liquidation Proceeds received in connection with the
final disposition of such REO Property; provided, that any such unreimbursed
Advances as well as any unpaid Servicing Fees may be reimbursed or paid, as the
case may be, prior to final disposition, out of any net rental income or other
net amounts derived from such REO Property.

                  (d) To the extent provided in the related Servicing Agreement,
the Liquidation Proceeds from the final disposition of the REO Property, net of
any payment to the Master Servicer and the applicable Servicer as provided above
shall be deposited in the Protected Account on or prior to the Determination
Date in the month following receipt thereof and be remitted by wire transfer in
immediately available funds to the Master Servicer for deposit into the
Distribution Account on the next succeeding Remittance Date.

         Section 3.16 ANNUAL OFFICER'S CERTIFICATE AS TO COMPLIANCE.

                  (a) The Master Servicer shall deliver to the Trustee and the
Rating Agencies on or before March 15 of each year, commencing on March 15,
2004, an Officer's Certificate signed by a Servicing Officer, certifying that
with respect to the period ending December 31 of the prior year: (i) such
Servicing Officer has reviewed the activities of such Master Servicer during the
preceding calendar year or portion thereof and its performance under this
Agreement, (ii) to the best of such Servicing Officer's knowledge, based on such
review, such Master Servicer has performed and fulfilled its duties,
responsibilities and obligations under this Agreement in all material respects
throughout such year, or, if there has been a default in the fulfillment of any
such duties, responsibilities or obligations, specifying each such default known
to such Servicing Officer and the nature and status thereof, (iii) nothing has
come to the attention of such Servicing Officer to lead such Servicing Officer
to believe that any Servicer has failed to perform any of its duties,
responsibilities and obligations under its Servicing Agreement in all material
respects throughout such year, or, if there has been a material default in the
performance or fulfillment of any such duties, responsibilities or obligations,
specifying each such default known to such Servicing Officer and the nature and
status thereof.

                  (b) Copies of such statements shall be provided to any
Certificateholder upon request, by the Master Servicer or by the Trustee at the
Master Servicer's expense if the Master Servicer failed to provide such copies
(unless (i) the Master Servicer shall have failed to provide

                                      -57-
<PAGE>

the Trustee with such statement or (ii) the Trustee shall be unaware of the
Master Servicer's failure to provide such statement).

         Section 3.17 ANNUAL INDEPENDENT ACCOUNTANT'S SERVICING REPORT. If the
Master Servicer has, during the course of any fiscal year, directly serviced any
of the Loans, then the Master Servicer at its expense shall cause a nationally
recognized firm of independent certified public accountants to furnish a
statement to the Trustee, the Rating Agencies and the Seller on or before March
15 of each year, commencing on March 15, 2004 to the effect that, with respect
to the most recently ended fiscal year, such firm has examined certain records
and documents relating to the Master Servicer's performance of its servicing
obligations under this Agreement and pooling and servicing and trust agreements
in material respects similar to this Agreement and to each other and that, on
the basis of such examination conducted substantially in compliance with the
audit program for mortgages serviced for Freddie Mac or the Uniform Single
Attestation Program for Mortgage Bankers, such firm is of the opinion that the
Master Servicer's activities have been conducted in compliance with this
Agreement, or that such examination has disclosed no material items of
noncompliance except for (i) such exceptions as such firm believes to be
immaterial, (ii) such other exceptions as are set forth in such statement and
(iii) such exceptions that the Uniform Single Attestation Program for Mortgage
Bankers or the Audit Program for Mortgages Serviced by Freddie Mac requires it
to report. Copies of such statements shall be provided to any Certificateholder
upon request by the Master Servicer, or by the Trustee at the expense of the
Master Servicer if the Master Servicer shall fail to provide such copies (unless
(i) the Master Servicer shall have failed to provide the Trustee with such
statement or (ii) the Trustee shall be unaware of the Master Servicer's failure
to provide such statement). If such report discloses exceptions that are
material, the Master Servicer shall advise the Trustee whether such exceptions
have been or are susceptible of cure, and shall take prompt action to do so.

         Section 3.18 REPORTS FILED WITH SECURITIES AND EXCHANGE COMMISSION.

                  (a) Within 15 days after each Distribution Date, the Master
Servicer shall, in accordance with industry standards, file with the Commission
via the Electronic Data Gathering and Retrieval System ("EDGAR"), a Form 8-K
with a copy of the statement to be furnished by the Securities Administrator to
the Certificateholders for such Distribution Date as an exhibit thereto. Prior
to January 30, 2004, the Master Servicer shall, in accordance with industry
standards, file a Form 15 Suspension Notice with respect to the Trust Fund, if
applicable. Prior to March 30, 2004 and annually thereafter (if required), the
Master Servicer shall file a Form 10-K, in substance conforming to industry
standards, with respect to the Trust Fund. Such Form 10-K shall include, to the
extent available, as exhibits (i) each applicable Servicer's annual statement of
compliance described under the related Servicing Agreement, (ii) each applicable
Servicer's accountant's report described under the related Servicing Agreement,
(iii) the Master Servicer's accountant's report described in Section 3.17, if
applicable, in each case to the extent timely delivered, if applicable, to the
Master Servicer, and (iv) a written certification signed by an officer of the
Master Servicer that complies with the Sarbanes-Oxley Act of 2002 as in effect
on the date of this Agreement and the February 3, 2003, Statement by the Staff
of the Division of Corporation Finance of the Commission Regarding Compliance by
Asset-Backed Issuers with Exchange Act Rules 13a-14 and 15d-14 as in effect as
of the date of this Agreement. The Depositor hereby grants to the Master
Servicer a limited power of attorney to execute and file

                                      -58-
<PAGE>

each Form 8-K and Form 10-K on behalf of the Depositor. Such power of attorney
shall continue until either the earlier of (i) receipt by the Master Servicer
from the Depositor of written termination of such power of attorney and (ii) the
termination of the Trust Fund. The Depositor and the Trustee each agree to
promptly furnish to the Master Servicer, from time to time upon request, such
further information, reports and financial statements within its control related
to this Agreement and the Loans as the Master Servicer reasonably deems
appropriate to prepare and file all necessary reports with the Commission. The
Master Servicer shall cooperate with the Depositor in connection with any
additional filings with respect to the Trust Fund as the Depositor deems
necessary under the Exchange Act. Copies of all reports filed by the Master
Servicer under the Exchange Act shall be sent to the Depositor.

                  (b) The Master Servicer shall indemnify and hold harmless the
Depositor, the Trustee and their respective officers, directors and Affiliates
from and against any losses, damages, penalties, fines, forfeitures, reasonable
and necessary legal fees and related costs, judgments and other costs and
expenses arising out of or based upon a breach of the Master Servicer's
obligations under this Section 3.18 or the Master Servicer's negligence, bad
faith or willful misconduct in connection therewith. Fees and expenses incurred
by the Master Servicer in connection with this Section 3.18 shall not be
reimbursable from the Trust Fund.

         Section 3.19 UCC. The Depositor shall file any financing statements or
amendments thereto required by any change in the Uniform Commercial Code. The
Depositor agrees to file continuation statements for any such Uniform Commercial
Code financing statements which the Seller or the Depositor filed in connection
with the Trust.

         Section 3.20 OBLIGATION OF THE MASTER SERVICER IN RESPECT OF
COMPENSATING INTEREST. The Master Servicer shall deposit in the Distribution
Account not later than each Distribution Account Deposit Date an amount equal to
the lesser of (i) the aggregate amounts required to be paid by the Servicers
under the Servicing Agreements with respect to Compensating Interest on the
related Loans for the related Distribution Date, and not so paid by the related
Servicers and (ii) the Master Servicing Compensation for such Distribution Date
without reimbursement therefor.

         Section 3.21 Reserved.

         Section 3.22 Protected Accounts.

                  (a) The Master Servicer shall enforce the obligation of each
Servicer to establish and maintain a Protected Account in accordance with the
applicable Servicing Agreement, with records to be kept with respect thereto on
a Loan by Loan basis, into which accounts shall be deposited within 48 hours (or
as of such other time specified in the related Servicing Agreement) of receipt
all collections of principal and interest on any Loan and with respect to any
REO Property received by a Servicer, including Principal Prepayments, Insurance
Proceeds, Liquidation Proceeds, and advances made from the Servicer's own funds
(less servicing compensation as permitted by the applicable Servicing Agreement
in the case of any Servicer) and all other amounts to be deposited in the
Protected Account. Each Servicer is hereby authorized to make withdrawals from
and deposits to the related Protected Account for purposes required or permitted
by the related Servicing Agreement. To the extent provided in the related
Servicing Agreement, the Protected Account shall be held in a depository
institution and

                                      -59-
<PAGE>

segregated on the books of such institution in the name of the Trustee for the
benefit of Certificateholders.

                  (b) To the extent provided in the related Servicing Agreement,
amounts on deposit in a Protected Account may be invested in Eligible
Investments in the name of the Trustee for the benefit of Certificateholders
and, except as provided in the preceding paragraph, not commingled with any
other funds, such Eligible Investments to mature, or to be subject to redemption
or withdrawal, no later than the date on which such funds are required to be
withdrawn for deposit in the Distribution Account, and shall be held until
required for such deposit. The income earned from Eligible Investments made
pursuant to this Section 3.22 shall be paid to the related Servicer under the
applicable Servicing Agreement, and the risk of loss of moneys required to be
distributed to the Certificateholders resulting from such investments shall be
borne by and be the risk of the related Servicer. The related Servicer (to the
extent provided in the Servicing Agreement) shall deposit the amount of any such
loss in the Protected Account within two Business Days of receipt of
notification of such loss but not later than the second Business Day prior to
the Distribution Date on which the moneys so invested are required to be
distributed to the Certificateholders.

                  (c) To the extent provided in the related Servicing Agreement
and subject to this Article III, on or before each Servicer Remittance Date, the
related Servicer shall withdraw or shall cause to be withdrawn from the
Protected Accounts and shall immediately deposit or cause to be deposited in the
Distribution Account amounts representing the following collections and payments
(other than with respect to principal of or interest on the Loans due on or
before the Cut-Off Date):

                  (i) Monthly Payments on the Loans received or any related
         portion thereof advanced by the Servicers pursuant to the Servicing
         Agreements which were due on or before the related Due Date, net of the
         amount thereof comprising the Servicing Fees;

                  (ii) Principal Prepayments, Liquidation Proceeds received by
         the Servicers with respect to such Loans in the related Prepayment
         Period, Compensating Interest and the amount of any related Prepayment
         Charges; and

                  (iii) Any amount to be used as an Advance.

                  (d) Withdrawals may be made from an Account only to make
remittances as provided in Section 3.22(c), 3.23 and 3.24 or as otherwise
provided in the Servicing Agreements; to reimburse the Master Servicer or a
Servicer for Advances which have been recovered by subsequent collection from
the related Mortgagor; to remove amounts deposited in error; to remove fees,
charges or other such amounts deposited on a temporary basis; or to clear and
terminate the account at the termination of this Agreement in accordance with
Section 9.1. As provided in Sections 3.22(c) and 3.23(b) or as otherwise
provided in the Servicing Agreements certain amounts otherwise due to the
Servicers may be retained by them and need not be deposited in the Distribution
Account.

         Section 3.23  DISTRIBUTION ACCOUNT.

                                      -60-
<PAGE>

                  (a) The Securities Administrator shall establish and maintain,
for the benefit of the Certificateholders, the Distribution Account as a
segregated trust account or accounts. The Master Servicer shall deposit in the
Distribution Account as identified by the Master Servicer and as received by the
Master Servicer, the following amounts:

                  (i) Any amounts withdrawn from a Protected Account;

                  (ii) Any Advance and any amounts in respect of Prepayment
         Interest Shortfalls;

                  (iii) Any Insurance Proceeds or Liquidation Proceeds received
         by or on behalf of the Master Servicer;

                  (iv) The Purchase Price with respect to any Loans purchased by
         the Seller pursuant to Section 2.3 and all proceeds of any Loans or
         property acquired with respect thereto purchased by the Master Servicer
         pursuant to Section 9.1;

                  (v) Any amounts required to be deposited by the Master
         Servicer or any Servicer with respect to losses on investments of
         deposits in an Account; and

                  (vi) Any other amounts received by or on behalf of the Master
         Servicer and required to be deposited in the Distribution Account
         pursuant to this Agreement.

                  (b) All amounts deposited to the Distribution Account shall be
held by the Securities Administrator in trust for the benefit of the
Certificateholders in accordance with the terms and provisions of this
Agreement. The requirements for crediting the Distribution Account shall be
exclusive, it being understood and agreed that, without limiting the generality
of the foregoing, payments in the nature of late payment charges or assumption,
tax service, statement account or payoff, substitution, satisfaction, release
and other like fees and charges, need not be credited by the Master Servicer or
the related Servicer to the Distribution Account. In the event that the Master
Servicer shall deposit or cause to be deposited to the Distribution Account any
amount not required to be credited thereto, the Securities Administrator, upon
receipt of a written request therefor signed by a Servicing Officer of the
Master Servicer, shall promptly transfer such amount to the Master Servicer, any
provision herein to the contrary notwithstanding.

                  (c) The Distribution Account shall constitute a trust account
of the Trust Fund segregated on the books of the Securities Administrator and
held by the Securities Administrator in trust in its Corporate Trust Office, and
the Distribution Account and the funds deposited therein shall not be subject
to, and shall be protected from, all claims, liens, and encumbrances of any
creditors or depositors of the Securities Administrator (whether made directly,
or indirectly through a liquidator or receiver of the Securities Administrator).
The amount at any time credited to the Distribution Account shall be invested in
the name of the Master Servicer, in such Eligible Investments selected by the
Master Servicer or deposited in demand deposits with such depository
institutions as selected by the Master Servicer, provided that time deposits of
such depository institutions would be an Eligible Investment. All Eligible
Investments shall mature or be subject to redemption or withdrawal on or before,
and shall be held until, the Distribution Date following the date of the
investment of such funds (the "Investment Withdrawal Distribution Date") if the
obligor for such Eligible Investment is the Securities Administrator or,

                                      -61-
<PAGE>

if such obligor is any other Person, the Business Day preceding such Investment
Withdrawal Distribution Date. All investment earnings on amounts on deposit in
the Distribution Account from time to time shall be for the account of the
Master Servicer. The Master Servicer shall be permitted to receive distribution
of any and all investment earnings from the Distribution Account on each
Distribution Date. If there is any loss on an Eligible Investment or demand
deposit, the Master Servicer shall deposit such amount in the Distribution
Account. With respect to the Distribution Account and the funds deposited
therein, the Securities Administrator shall take such action as may be necessary
to ensure that the Certificateholders shall be entitled to the priorities
afforded to such a trust account (in addition to a claim against the estate of
the Securities Administrator) as provided by 12 U.S.C. ss. 92a(e), and
applicable regulations pursuant thereto, if applicable, or any applicable
comparable state statute applicable to state chartered banking corporations.

         Section 3.24  PERMITTED WITHDRAWALS AND TRANSFERS FROM THE DISTRIBUTION
ACCOUNT.

                  (a) The Securities Administrator shall, from time to time on
demand of the Master Servicer make or cause to be made such withdrawals or
transfers from the Distribution Account as the Master Servicer has designated
for such transfer or withdrawal pursuant to the Servicing Agreements for the
following purposes, not in any order of priority:

                  (i) to reimburse the Master Servicer or any Servicer for any
         Advance of its own funds, the right of the Master Servicer or a
         Servicer to reimbursement pursuant to this subclause (i) being limited
         to amounts received on a particular Loan (including, for this purpose,
         the Purchase Price therefor, Insurance Proceeds and Liquidation
         Proceeds) which represent late payments or recoveries of the principal
         of or interest on such Loan respecting which such Advance was made;

                  (ii) to reimburse the Master Servicer or any Servicer from
         Insurance Proceeds or Liquidation Proceeds relating to a particular
         Loan for amounts expended by the Master Servicer or such Servicer in
         good faith in connection with the restoration of the related Mortgaged
         Property which was damaged by an Uninsured Cause or in connection with
         the liquidation of such Loan;

                  (iii) to reimburse the Master Servicer or any Servicer from
         Insurance Proceeds relating to a particular Loan for insured expenses
         incurred with respect to such Loan and to reimburse the Master Servicer
         or such Servicer from Liquidation Proceeds from a particular Loan for
         Liquidation Expenses incurred with respect to such Loan;

                  (iv) to pay the Master Servicer or any Servicer, as
         appropriate, from Liquidation Proceeds or Insurance Proceeds received
         in connection with the liquidation of any Loan, the amount which it or
         such Servicer would have been entitled to receive under subclause
         (viii) of this Subsection (a) as servicing compensation on account of
         each defaulted scheduled payment on such Loan if paid in a timely
         manner by the related Mortgagor;

                  (v) to pay the Master Servicer or any Servicer from the
         Purchase Price for any Loan, the amount which it or such Servicer would
         have been entitled to receive under subclause (x) of this Subsection
         (a) as servicing compensation;

                                      -62-
<PAGE>

                  (vi) to reimburse the Master Servicer or any Servicer for any
         Nonrecoverable Advance, after a Realized Loss has been allocated with
         respect to the related Loan if the Advance or Servicing Advance has not
         been reimbursed pursuant to clause (i);

                  (vii) to pay the Master Servicing Fee to the Master Servicer
         and the Credit Risk Management Fee to the Credit Risk Manager for such
         Distribution Date and the amount of any income or gain realized from
         investments of funds on deposit in the Distribution Account pursuant to
         Section 3.14 hereof and to reimburse the Master Servicer for expenses,
         costs and liabilities incurred by and reimbursable to it pursuant to
         Sections 3.3, 6.3, 8.5 and 10.1;

                  (viii) to reimburse or pay any Servicer any such amounts as
         are due thereto under the applicable Servicing Agreement and have not
         been retained by or paid to the Servicer, to the extent provided in the
         related Servicing Agreement;

                  (ix) to reimburse the Trustee, the Custodian and the
         Securities Administrator for expenses, costs and liabilities, if any,
         incurred by or reimbursable to such parties pursuant to this Agreement;

                  (x) to pay the LPMI Fee to the insurer of the related LPMI
         Policy, if any;

                  (xi) to remove amounts deposited in error; and

                  (xii) to clear and terminate the Distribution Account pursuant
         to Section 9.1.

                  (b) The Master Servicer shall keep and maintain separate
accounting, on a Loan by Loan basis, for the purpose of accounting for any
reimbursement from the Distribution Account pursuant to subclauses (i) through
(v), inclusive, or with respect to any such amounts which would have been
covered by such subclauses had the amounts not been retained by the Master
Servicer without being deposited in the Distribution Account under Section
3.23(b).

                  (c) On each Distribution Date, the Securities Administrator
shall distribute the Available Distribution Amount to the Holders of the
Certificates in accordance with Section 4.1.

         Section 3.25  RESERVE FUND.

                  (a) No later than the Closing Date, the Securities
Administrator shall establish and maintain a separate, segregated trust account
titled, "Reserve Fund, Wells Fargo Bank Minnesota, National Association, in
trust for the registered holders of Deutsche Alt-A Securities, Inc. Mortgage
Loan Trust, Series 2003-2XS, Mortgage Pass-Through Certificates." On the Closing
Date, the Depositor will deposit, or cause to be deposited, into the Reserve
Fund $1,000.

                  (b) On each Distribution Date as to which there is a Net WAC
Rate Carryover Amount payable to the Class A Certificates or the Class M
Certificates, the Securities Administrator will deposit into the Reserve Fund
the amounts described in Section 4.1(a)(iii)(E), rather than distributing such
amounts to the Class CE Certificateholders. On each such Distribution Date, the
Securities Administrator shall hold all such amounts for the benefit of the
Holders of the Class A Certificates, other than the Class A-IO Certificates, and
the Class M

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<PAGE>

Certificates, and will distribute such amounts to the Holders of the Class A
Certificates, other than the Class A-IO Certificates, and the Class M
Certificates in the amounts and priorities set forth in Section 4.1(a)(iii). If
no Net WAC Rate Carryover Amounts are payable on a Distribution Date, the
Securities Administrator shall deposit, based on the instructions received by it
from the Securities Administrator, into the Reserve Fund on behalf of the Class
CE Certificateholders, from amounts otherwise distributable to the Class CE
Certificateholders, an amount such that when added to other amounts already on
deposit in the Reserve Fund, the aggregate amount on deposit therein is equal to
$1,000.

                  (c) For federal and state income tax purposes, the Class CE
Certificateholders will be deemed to be the owners of the Reserve Fund and all
amounts deposited into the Reserve Fund (other than the initial deposit therein
of $1,000) shall be treated as amounts distributed by REMIC III to the Holders
of the Class CE Certificates. Upon the termination of the Trust Fund, or the
payment in full of the Class A Certificates and the Class M Certificates, all
amounts remaining on deposit in the Reserve Fund will be released by the Trust
Fund and distributed to the Class CE Certificateholders or their designees. The
Reserve Fund will be part of the Trust Fund but not part of any REMIC and any
payments to the Holders of the Class A Certificates or the Class M Certificates
of Net WAC Rate Carryover Amounts will not be payments with respect to a
"regular interest" in a REMIC within the meaning of Code Section 860(G)(a)(1).

                  (d) By accepting a Class CE Certificate, each Class CE
Certificateholder hereby agrees that the Securities Administrator will deposit
into the Reserve Fund the amounts described above on each Distribution Date
rather than distributing such amounts to the Class CE Certificateholders. By
accepting a Class CE Certificate, each Class CE Certificateholder further agrees
that its agreement to such action by the Securities Administrator is given for
good and valuable consideration, the receipt and sufficiency of which is
acknowledged by such acceptance.

                  (e) The Securities Administrator shall direct any depository
institution maintaining the Reserve Fund to invest the funds in such account in
one or more Permitted Investments bearing interest or sold at a discount, and
maturing, unless payable on demand, (i) no later than the Business Day
immediately preceding the date on which such funds are required to be withdrawn
from such account pursuant to this Agreement, if a Person other than the
Securities Administrator or an Affiliate manages or advises such investment, and
(ii) no later than the date on which such funds are required to be withdrawn
from such account pursuant to this Agreement, if the Securities Administrator or
an Affiliate manages or advises such investment. All income and gain earned upon
such investment shall be deposited into the Reserve Fund. In no event shall the
Securities Administrator be liable for any investments made pursuant to this
clause (e).

                  (f) For federal tax return and information reporting, the
right of the Class A Certificateholders and the Class M Certificateholders to
receive payments from the Reserve Fund in respect of any Net WAC Rate Carryover
Amount shall be assigned a value of zero.

         Section 3.26  PREPAYMENT PENALTY VERIFICATION.

                  On or prior to each Servicer Remittance Date, each Servicer
shall, to the extent provided in the respective Servicing Agreement, provide in
an electronic format acceptable to the

                                      -64-
<PAGE>

Master Servicer the data necessary for the Master Servicer to perform its
verification duties set forth in this Section 3.26. The Master Servicer or a
third party reasonably acceptable to the Master Servicer and the Depositor (the
"Verification Agent") will perform such verification duties and will use its
best efforts to issue its findings in a report (the "Verification Report")
delivered to the Master Servicer and the Depositor within ten (10) Business Days
following the related Distribution Date; provided, however, that if the
Verification Agent is unable to issue the Verification Report within ten (10)
Business Days following the Distribution Date, the Verification Agent may issue
and deliver to the Master Servicer and the Depositor the Verification Report
upon the completion of its verification duties. The Master Servicer shall
forward the Verification Report to the respective Servicer and shall notify such
Servicer if the Master Servicer has determined that such Servicer did not
deliver the appropriate Prepayment Charges to the Master Servicer in accordance
with the respective Servicing Agreement. Such written notification from the
Master Servicer shall include the loan number, prepayment penalty code and
prepayment penalty amount as calculated by the Master Servicer or the
Verification Agent, as applicable, of each Loan for which there is a
discrepancy. If the respective Servicer agrees with the verified amounts, such
Servicer shall adjust the immediately succeeding Remittance Report and the
amount remitted to the Master Servicer with respect to prepayments accordingly.
If the respective Servicer disagrees with the determination of the Master
Servicer, such Servicer shall, within five (5) Business Days of its receipt of
the Verification Report, notify the Master Servicer of such disagreement and
provide the Master Servicer with detailed information to support such Servicer's
position. The respective Servicer and the Master Servicer shall cooperate to
resolve any discrepancy on or prior to the immediately succeeding Servicer
Remittance Date, and such Servicer will indicate the effect of such resolution
on the related Remittance Report and shall adjust the amount remitted with
respect to prepayments on such Servicer Remittance Date accordingly.

                  During such time as the respective Servicer and the Master
Servicer are resolving discrepancies with respect to the Prepayment Charges, no
payments in respect of any disputed Prepayment Charges will be remitted to the
Master Servicer Collection Account and the Master Servicer shall not be
obligated to remit such payments, unless otherwise required pursuant to Section
7.01 hereof. In connection with such duties, the Master Servicer shall be able
to rely solely on the information provided to it by the respective Servicer in
accordance with this Section. The Master Servicer shall not be responsible for
verifying the accuracy of any of the information provided to it by the
respective Servicer.

                                      -65-
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                                   ARTICLE IV
                    PAYMENTS TO CERTIFICATEHOLDERS; ADVANCES;
                             STATEMENTS AND REPORTS

         Section 4.1 DISTRIBUTIONS TO CERTIFICATEHOLDERS.

                  (a) On each Distribution Date, the Securities Administrator,
to the extent on deposit therein and based solely upon the Remittance Report for
such Distribution Date, shall withdraw from the Distribution Account the
Available Distribution Amount for such Distribution Date and distribute to each
Certificateholder, by wire transfer in immediately available funds for the
account of the Certificateholder or by any other means of payment acceptable to
each Certificateholder of record on the immediately preceding Record Date (other
than as provided in Section 9.1 respecting the final distribution) as specified
by each such Certificateholder and at the address of such Holder appearing in
the Certificate Register, from the amount so withdrawn and to the extent of such
Available Distribution Amount, such Certificateholder's Percentage Interest of
the following amounts and in following order and priority:

                  (i) On each Distribution Date, the Securities Administrator
         shall distribute the Interest Remittance Amount for such Distribution
         Date to the Holders of the Class A Certificates and the Class M
         Certificates in the following order and priority:

                       (A)  to each Class of Senior Certificates, the Senior
                            Interest Distribution Amount for such Distribution
                            Date and such Class on a pro rata basis;

                       (B)  to the Class M-1 Certificates, the Interest
                            Distribution Amount allocable to the Class M-1
                            Certificates;

                       (C)  to the Class M-2 Certificates, the Interest
                            Distribution Amount allocable to the Class M-2
                            Certificates;

                       (D)  to the Class M-3 Certificates, the Interest
                            Distribution Amount allocable to the Class M-3
                            Certificates;

                  (ii) On each Distribution Date, the Securities Administration
         shall distribute the Principal Distribution Amounts in the
         Certificates, other than the Class A-IO and Class P Certificates, in
         the following order and priority:

                       (A)  The Senior Principal Distribution Amount will be
                            distributed as follows:

                                (1) first, to the Class A-6 Certificates, an
                            amount equal to the Class A-6 Lockout Distribution
                            Amount for that Distribution Date, until the
                            Certificate Principal Balance thereof has been
                            reduced to zero; and

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<PAGE>

                                (2) second, any remaining Senior Principal
                            Distribution Amount after the distributions
                            described above, in the following order and
                            priority:

                                 (a) to the Class A-1 Certificates, until the
                                 Certificate Principal Balance thereof has been
                                 reduced to zero;

                                 (b) to the Class A-2 Certificates, until the
                                 Certificate Principal Balance thereof has been
                                 reduced to zero;

                                 (c) to the Class A-3 Certificates, until the
                                 Certificate Principal Balance thereof has been
                                 reduced to zero;

                                 (d) to the Class A-4 Certificates, until the
                                 Certificate Principal Balance thereof has been
                                 reduced to zero;

                                 (e) to the Class A-5 Certificates until the
                                 Certificate Principal Balance thereof has been
                                 reduced to zero; and

                                 (f) to the Class A-6 Certificates, until the
                                 Certificate Principal Balance thereof has been
                                 reduced to zero.

                       (B)  Holders of the Class M-1 Certificates will be
                            entitled to receive on each Distribution Date, to
                            the extent of the portion of the Principal
                            Distribution Amount remaining after the Senior
                            Principal Distribution Amount has been distributed,
                            the Class M-1 Principal Distribution Amount, in
                            reduction of the Certificate Principal Balance
                            thereof, until the Certificate Principal Balance of
                            the Class M-1 Certificates has been reduced to zero.

                       (C)  Holders of the Class M-2 Certificates will be
                            entitled to receive on each Distribution Date, to
                            the extent of the portion of the Principal
                            Distribution Amount remaining after the sum of the
                            Senior Principal Distribution Amount and the Class
                            M-1 Principal Distribution Amount has been
                            distributed, the Class M-2 Principal Distribution
                            Amount, in reduction of the Certificate Principal
                            Balance thereof, until the Certificate Principal
                            Balance of the Class M-2 Certificates has been
                            reduced to zero.

                       (D)  Holders of the Class M-3 Certificates will be
                            entitled to receive on each Distribution Date, to
                            the extent of the portion of the Principal
                            Distribution Amount remaining after the sum of the
                            Senior Principal Distribution Amount, the Class M-1
                            Principal Distribution Amount and the Class M-2
                            Principal Distribution Amount has been distributed,
                            the Class M-3 Principal Distribution Amount, in
                            reduction of the Certificate Principal Balance
                            thereof, until the Certificate Principal Balance of
                            the Class M-3 Certificates has been reduced to zero.

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<PAGE>

                  (iii) On each Distribution Date, the Securities Administrator
         shall distribute any Net Monthly Excess Cashflow for such Distribution
         Date in the following order of priority:

                       (A)  to the holders of the Class A Certificates and Class
                            M Certificates an amount equal to the Extra
                            Principal Distribution Amount in accordance with
                            clause (iv) below;

                       (B)  to the Holders of the Class M-1 Certificates, in an
                            amount equal to the Interest Carry Forward Amount
                            allocable to such Class of Certificates;

                       (C)  to the Holders of the Class M-2 Certificates, in an
                            amount equal to the Interest Carry Forward Amount
                            allocable to such Class of Certificates;

                       (D)  to the Holders of the Class M-3 Certificates, in an
                            amount equal to the Interest Carry Forward Amount
                            allocable to such Class of Certificates;

                       (E)  to the Reserve Fund, an amount equal to the sum of
                            the Net WAC Rate Carryover Amounts, if any, with
                            respect to the Class A Certificates and the Class M
                            Certificates;

                       (F)  to the Holders of the Class CE Certificates, the
                            Interest Distribution Amount and any
                            Overcollateralization Reduction Amount for such
                            Distribution Date; and

                       (G)  to the Holders of the Class R Certificates, in
                            respect of the Class R-III Interest, any remaining
                            amounts; provided that if such Distribution Date is
                            the Distribution Date immediately following the
                            expiration of the latest Prepayment Charge term as
                            identified on the Loan Schedule or any Distribution
                            Date thereafter, then any such remaining amounts
                            will be distributed first, to the Holders of the
                            Class P Certificates, until the Certificate
                            Principal Balance thereof has been reduced to zero;
                            and second, to the Holders of the Class R
                            Certificates.

         On each Distribution Date, the Securities Administrator, after making
the required distributions of interest and principal to the Certificates as
described in Section 4.1(a)(i) and (ii) above and after the distribution of the
Net Monthly Excess Cashflow as described in Section 4.1(a)(iii), the Securities
Administrator will withdraw from the Reserve Fund the amounts on deposit therein
and distribute such amounts to the Class A Certificates (other than the Class
A-IO Certificates) and the Class M Certificates in respect of any Net WAC Rate
Carryover Amounts due to each such Class in the following manner and order of
priority: first, concurrently to the Class A Certificates, other than the Class
A-IO Certificates, on a pro rata basis, the related Net WAC Rate Carryover
Amount for such Distribution Date for each such Class; second, to the Class M-1
Certificates, the related Net WAC Rate Carryover Amount for such Distribution
Date for such Class; third, to the Class M-2 Certificates, the related Net WAC
Rate Carryover Amount for such Distribution Date for such Class; and fourth, to
the Class M-3 Certificates, the related Net WAC Rate Carryover Amount for such
Distribution Date for such Class.

                                      -68-
<PAGE>

                  (iv) (A) On each Distribution Date (a) prior to the Stepdown
         Date or (b) on which a Trigger Event is in effect, the Extra Principal
         Distribution Amount shall be distributed in the following order of
         priority:

                                (1) first, to the Holders of the Class A-1,
                            Class A-2, Class A-3, Class A-4, Class A-5 and Class
                            A-6 Certificates until the Certificate Principal
                            Balance of each such Class has been reduced to zero;

                                (2) second, to the Holders of the Class M-1
                            Certificates, until the Certificate Principal
                            Balance of such Class has been reduced to zero;

                                (3) third, to the Holders of the Class M-2
                            Certificates, until the Certificate Principal
                            Balance of such Class has been reduced to zero; and

                                (4) fourth, to the Holders of the Class M-3
                            Certificates, until the Certificate Principal
                            Balance of such Class has been reduced to zero.

                       (B)  On each Distribution Date (a) on or after the
                            Stepdown Date and (b) on which a Trigger Event is
                            not in effect, distributions of principal to the
                            extent of the Extra Principal Distribution Amount
                            shall be distributed in the following order of
                            priority:

                                (1) the lesser of (x) the Extra Principal
                            Distribution Amount and (y) the Senior Principal
                            Distribution Amount, shall be distributed to the
                            Holders of the Class A-1, Class A-2, Class A-3,
                            Class A-4, Class A-5 and Class A-6 Certificates, in
                            that order, until the Certificates Principal Balance
                            of each such Class has been reduced to zero;

                                (2) the lesser of (x) the excess of (i) the
                            Extra Principal Distribution Amount over (ii) the
                            amount distributed to the Holders of the Class A
                            Certificates pursuant to clause (1) above and (y)
                            the Class M-1 Principal Distribution Amount, shall
                            be distributed to the Holders of the Class M-1
                            Certificates, until the Certificate Principal
                            Balance of such Class has been reduced to zero;

                                (3) the lesser of (x) the excess of (i) the
                            Extra Principal Distribution Amount over (ii) the
                            sum of the amounts distributed to the Holders of the
                            Class A Certificates and Class M-1 Certificates
                            pursuant to clauses (1) and (2) above and (y) the
                            Class M-2 Principal Distribution Amount, shall be
                            distributed to the Holders of the Class M-2
                            Certificates, until the Certificate Principal
                            Balance of such Class has been reduced to zero; and

                                      -69-
<PAGE>

                                (4) the lesser of (x) the excess of (i) the
                            Extra Principal Distribution Amount over (ii) the
                            sum of the amounts distributed to the Holders of the
                            Class A Certificates, Class M-1 Certificates and
                            Class M-2 Certificates pursuant to clauses (1), (2)
                            and (3) above and (y) the Class M-3 Principal
                            Distribution Amount, shall be distributed to the
                            Holders of the Class M-3 Certificates, until the
                            Certificate Principal Balance of such Class has been
                            reduced to zero.

                  (b) On each Distribution Date, the Securities Administrator
shall withdraw any amounts then on deposit in the Distribution Account that
represent Prepayment Charges and shall distribute such amounts to the Class P
Certificateholders as described above.

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

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

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

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

         Section 4.2  ALLOCATION OF REALIZED LOSSES.

         Prior to each Distribution Date, the Master Servicer, based solely on
the information provided by the related Servicer, shall determine the amount of
Realized Losses, if any, with respect to each Loan.

                                      -70-
<PAGE>

         All Realized Losses on the Loans shall be allocated as follows: first,
to Net Monthly Excess Cashflow; second, to the Class CE Certificates, until the
Certificate Principal Balance thereof has been reduced to zero; third, to the
Class M-3 Certificates, until the Certificate Principal Balance thereof has been
reduced to zero; fourth, to the Class M-2 Certificates, until the Certificate
Principal Balance thereof has been reduced to zero; fifth, to the Class M-1
Certificates, until the Certificate Principal Balance thereof has been reduced
to zero. Realized Losses shall not be allocated to the Class A Certificates or
Class P Certificates. All Realized Losses to be allocated to the Certificate
Principal Balances of all Classes on any Distribution Date shall be so allocated
after the actual distributions to be made on such date as provided above. All
references above to the Certificate Principal Balance of any Class of
Certificates shall be to the Certificate Principal Balance of such Class
immediately prior to the relevant Distribution Date, before reduction thereof by
any Realized Losses, in each case to be allocated to such Class of Certificates,
on such Distribution Date.

         Any allocation of Realized Losses to a Class M Certificate on any
Distribution Date shall be made by reducing the Certificate Principal Balance
thereof by the amount so allocated as of the Distribution Date in the month
following the calendar month in which the Realized Loss was incurred; any
allocation of Realized Losses to a Class CE Certificates shall be made by
reducing the amount otherwise payable in respect thereof pursuant to Section
4.1(a)(iii)(F). No allocations of any Realized Losses shall be made to the
Certificate Principal Balances of the Senior Certificates or the Class P
Certificates. Notwithstanding anything to the contrary in this Agreement, in no
event will the Certificate Principal Balance of any Class M Certificate be
reduced more than once in respect of any particular amount both (i) allocable to
the Class M Certificate in respect of Realized Losses and (ii) payable as
principal to the Holder of the Certificate from Net Monthly Excess Cashflow.

         As used herein, an allocation of a Realized Loss on a "pro rata basis"
among two or more specified Classes of Certificates means an allocation on a pro
rata basis, among the various Classes so specified, to each such Class of
Certificates on the basis of their then outstanding Certificate Principal
Balances prior to giving effect to distributions to be made on such Distribution
Date. All Realized Losses and all other losses allocated to a Class of
Certificates hereunder will be allocated among the, Certificates of such Class
in proportion to the Percentage Interests evidenced thereby.

                  The principal portion of all Realized Losses on the Mortgage
Loans shall be allocated on each Distribution Date first, to REMIC I Regular
Interest LTI-1 and REMIC I Regular Interest LTI-P, until the Uncertificated
Principal Balances have been reduced to zero and then to REMIC I Regular
Interest LTI-IO-A, REMIC I Regular Interest LTI-IO-B, REMIC I Regular Interest
LTI-IO-C, REMIC I Regular Interest LTI-IO-D and REMIC I Regular Interest
LTI-IO-E, until the Uncertificated Principal Balances have been reduced to zero.

                  All Realized Losses on the REMIC I Regular Interests shall be
allocated on each Distribution Date to the following REMIC II Regular Interests
in the specified percentages, as follows: first, to Uncertificated Accrued
Interest payable to the REMIC II Regular Interest LTII-AA and REMIC II Regular
Interest LTII-ZZ up to an aggregate amount equal to the REMIC II Interest Loss
Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated
Principal Balances of the REMIC II Regular Interest LTII-AA and REMIC II Regular
Interest

                                      -71-
<PAGE>

LTII-ZZ up to an aggregate amount equal to the REMIC II Principal Loss
Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated
Principal Balances of REMIC II Regular Interest LTII-AA, 98%, to REMIC II
Regular Interest LTII-M3, 1% and to REMIC II Regular Interest LTII_ZZ, 1%,
respectively, until the Uncertificated Principal Balances of REMIC II Regular
Interest LTII-M3 has been reduced to zero; fourth, to the Uncertificated
Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular
Interest LTII-M2 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC II Regular
Interest LTII-M2 has been reduced to zero; and fifth, to the Uncertificated
Principal Balances of REMIC II Regular Interest LTII-AA, REMIC II Regular
Interest LTII-M1 and REMIC II Regular Interest LTII-ZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Principal Balance of REMIC II Regular
Interest LTII-M1 has been reduced to zero.

         Section 4.3 STATEMENTS TO CERTIFICATEHOLDERS.

                  On each Distribution Date, the Securities Administrator shall
provide or make available, upon request to each Holder of the Regular Interest
Certificates and the Credit Risk Manager, a statement (each, a "Remittance
Report") as to the distributions made on such Distribution Date setting forth:

                  (i) the amount of the distribution made on such Distribution
         Date to the Holders of the Certificates of each Class allocable to
         principal and the amount of the distribution made on such Distribution
         Date to the Holders of the Class P Certificates allocable to Prepayment
         Charges;

                  (ii) the amount of the distribution made on such Distribution
         Date to the Holders of the Certificates of each Class allocable to
         interest;

                  (iii) The aggregate Servicing Fee received by each Servicer
         and Master Servicing Fee received by the Master Servicer during the
         related Due Period;

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

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

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

                  (vii) The aggregate amount of Principal Prepayments made
         during the related Prepayment Period and the aggregate amount of any
         Prepayment Charges received in respect thereof;

                                      -72-
<PAGE>

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

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

                  (x) The amount of funds advanced by each Servicer and the
         Master Servicer for such Distribution Date;

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

                  (xii) with respect to any Loan that became an REO Property
         during the preceding calendar month, the loan number of such Loan, the
         unpaid principal balance and the Scheduled Principal Balance of such
         Loan;

                  (xiii) to the extent provided by the Servicer, the book value
         of any REO Property as of the close of business on the last Business
         Day of the calendar month preceding the Distribution Date;

                  (xiv) the aggregate amount of extraordinary Trust Fund
         expenses withdrawn from the Distribution Account for such Distribution
         Date;

                  (xv) the Class Principal Balance of each Class of
         Certificates, after giving effect to the distributions and allocations
         of Realized Losses made on such Distribution Date, separately
         identifying any reduction thereof due to allocations of Realized
         Losses;

                  (xvi) the aggregate amount of any Prepayment Interest
         Shortfalls for such Distribution Date, to the extent not covered by
         payments by the Master Servicer pursuant to Section 3.20; and

                  (xvii) the aggregate amount of Relief Act Interest Shortfalls
         for such Distribution Date.

                  (xviii) the Required Overcollateralization Amount and the
         Credit Enhancement Percentage for such Distribution Date;

                  (xix) the Overcollateralization Increase Amount, if any, for
         such Distribution Date;

                  (xx) the Overcollateralization Reduction Amount, if any, for
         such Distribution Date;

                  (xxi) the Net WAC Rate Carryover Amount, if any, for such
         Distribution Date;

                  (xxii) the Net WAC Rate Carryover Amount, if any, outstanding
         after reimbursements therefor on such Distribution Date;

                                      -73-
<PAGE>

                  (xxiii) the respective Pass-Through Rates applicable to the
         Class A Certificates, the Class M Certificates and the Class CE
         Certificates for such Distribution Date;

                  (xxiv) the amount of any deposit to the Reserve Fund
         contemplated by Section 3.25;

                  (xxv) the balance of the Reserve Fund prior to the deposit or
         withdrawal of any amounts on such Distribution Date;

                  (xxvi) the amount of any withdrawal from the Reserve Fund
         pursuant to Section 4.1(a)(iii); and

                  (xxvii) the balance of the Reserve Fund after all deposits and
         withdrawals on such Distribution Date.

         The Securities Administrator shall make such statement (and, at its
option, any additional files containing the same information in an alternative
format) available each month to the Certificateholders, the Trustee and the
Rating Agencies via the Securities Administrator's internet website. The
Securities Administrator's internet website shall initially be located at
http:\\www.ctslink.com and assistance in using the website can be obtained by
calling the Securities Administrator's customer service desk at 1-301-815-6600.
Parties that are unable to use the above distribution option are entitled to
have a paper copy mailed to them via first class mail by calling the customer
service desk and indicating such. The Securities Administrator shall have the
right to change the way such statements are distributed in order to make such
distribution more convenient and/or more accessible to the above parties and the
Securities Administrator shall provide timely and adequate notification to all
above parties regarding any such changes.

         In the case of information furnished pursuant to subclauses (i) and
(ii) above, the amounts shall be expressed as a dollar amount per single
Certificate of the relevant Class.

         Within a reasonable period of time after the end of each calendar year,
the Securities Administrator shall furnish to each Person who at any time during
the calendar year was a Holder of a Regular Interest Certificate a statement
containing the information set forth in subclauses (i) and (ii) above,
aggregated for such calendar year or applicable portion thereof during which
such person was a Certificateholder. Such obligation of the Securities
Administrator shall be deemed to have been satisfied to the extent that
substantially comparable information shall be provided by the Securities
Administrator pursuant to any requirements of the Code as from time to time are
in force.

         Within a reasonable period of time after the end of each calendar year,
the Securities Administrator shall furnish to each Person who at any time during
the calendar year was a Holder of a Residual Certificate a statement setting
forth the amount, if any, actually distributed with respect to the Residual
Certificates, as appropriate, aggregated for such calendar year or applicable
portion thereof during which such Person was a Certificateholder.

                                      -74-
<PAGE>

         The Securities Administrator shall, upon request, furnish to each
Certificateholder, during the term of this Agreement, such periodic, special, or
other reports or information, whether or not provided for herein, as shall be
reasonable with respect to the Certificateholder, as applicable, or otherwise
with respect to the purposes of this Agreement, all such reports or information
to be provided at the expense of the Certificateholder, in accordance with such
reasonable and explicit instructions and directions as the Certificateholder may
provide.

         On each Distribution Date the Securities Administrator shall provide
Bloomberg Financial Markets, L.P. ("Bloomberg") CUSIP level factors for each
Class of Certificates as of such Distribution Date, using a format and media
mutually acceptable to the Securities Administrator and Bloomberg.

         Section 4.4 ADVANCES.

         If the Monthly Payment on a Loan or a portion thereof is delinquent as
of its Due Date, other than as a result of interest shortfalls due to bankruptcy
proceedings or application of the Relief Act, and the related Servicer fails to
make an advance of the delinquent amount pursuant to the related Servicing
Agreement, the Master Servicer shall deposit in the Distribution Account, from
its own funds or from amounts on deposit in the Distribution Account that are
held for future distribution, not later than the Distribution Account Deposit
Date immediately preceding the related Distribution Date an amount equal to such
delinquency, net of the Servicing Fee and Master Servicing Fee for such Loan
except to the extent the Master Servicer determines any such advance to be
nonrecoverable from Liquidation Proceeds, Insurance Proceeds or future payments
on the Loan for which such Advance was made. Any amounts held for future
distribution and so used shall be appropriately reflected in the Master
Servicer's records and replaced by the Master Servicer by deposit in the
Distribution Account on or before any future Distribution Account Deposit Date
to the extent that the Available Distribution Amount for the related
Distribution Date (determined without regard to Advances to be made on the
Distribution Account Deposit Date) shall be less than the total amount that
would be distributed to the Classes of Certificateholders pursuant to Section
4.1 on such Distribution Date if such amounts held for future distributions had
not been so used to make Advances. Subject to the foregoing, the Master Servicer
shall continue to make such Advances through the date that the related Servicer
is required to do so under its Servicing Agreement. If applicable, on the
Distribution Account Deposit Date, the Master Servicer shall present an
Officer's Certificate to the Trustee (i) stating that the Master Servicer elects
not to make an Advance in a stated amount and (ii) detailing the reason it deems
the advance to be nonrecoverable.

         Section 4.5 COMPLIANCE WITH WITHHOLDING REQUIREMENTS.

         Notwithstanding any other provision of this Agreement, the Trustee and
the Securities Administrator shall comply with all federal withholding
requirements respecting payments to Certificateholders of interest or original
issue discount that the Trustee and the Securities Administrator reasonably
believe are applicable under the Code. The consent of Certificateholders shall
not be required for such withholding. In the event the Securities Administrator
does withhold any amount from interest or original issue discount payments or
advances thereof to any Certificateholder pursuant to federal withholding
requirements, the Securities Administrator shall indicate the amount withheld to
such Certificateholders.

                                      -75-
<PAGE>

                  (a) On each Distribution Date, the following amounts, in the
following order of priority and in accordance with the Remittance Report, shall
be distributed by REMIC I to REMIC II on account of the REMIC I Regular
Interests or withdrawn from the Distribution Account and distributed to the
Holders of the Class R Certificates, as the case may be:

                  (i) first, to the Holders of REMIC I Regular Interest
         LTI-IO-A, REMIC I Regular Interest LTI-IO-B, REMIC I Regular Interest
         LTI-IO-C, REMIC I Regular Interest LTI-IO-D and REMIC I Regular
         Interest LTI-IO-E, in an amount equal to (A) the Uncertificated Accrued
         Interest for such Distribution Date, plus (B) any amounts in respect
         thereof remaining unpaid from previous Distribution Dates and second,
         to the Holders of REMIC I Regular Interest LTI-1 and REMIC I Regular
         Interest LTI-P, in an amount equal to (A) the Uncertificated Accrued
         Interest for such Distribution Date, plus (B) any amounts in respect
         thereof remaining unpaid from previous Distribution Dates;

                  (ii) to the Holders of the REMIC I Regular Interest LTI-P, on
         the Distribution Date immediately following the expiration of the
         latest Prepayment Change term as identified on the Loan Schedule or any
         Distribution Date thereafter until $100 has been distributed pursuant
         to this clause;

                  (iii) on each Distribution Date, the remainder of the
         Available Funds for such Distribution Date after the distributions made
         pursuant to clause (i) and clause (ii) above, first, to the Holders of
         REMIC I Regular Interest LTI-1 until the Uncertificated Principal
         Balance of such REMIC I Regular Interest is reduced to zero, and
         second, to the Holders of REMIC I Regular Interest LTI-IO-A, REMIC I
         Regular Interest LTI-IO-B, REMIC I Regular Interest LTI-IO-C, REMIC I
         Regular Interest LTI-IO-D and REMIC I Regular Interest LTI-IO-E, until
         the Uncertificated Principal Balance of each such REMIC I Regular
         Interest is reduced to zero; and

                  (iv) to the Holders of the Class R Certificates, any amounts
         remaining after the distributions pursuant to clauses (i) through (iii)
         above.

         On each Distribution Date, all amounts representing Prepayment Charges
in respect of the Mortgage Loans received during the related Prepayment Period
will be distributed by REMIC I to the Holders of REMIC I Regular Interest LTI-P.
The payment of the foregoing amounts to the Holders of REMIC I Regular Interest
LTI-P shall not reduce the Uncertificated Principal Balance thereof.

                  (b) On each Distribution Date, the following amounts, in the
following order of priority and in accordance with the Remittance Report, shall
be distributed by REMIC II to REMIC III on account of the REMIC II Regular
Interests or withdrawn from the Distribution Account and distributed to the
Holders of the Class R Certificates, as the case may be:

                  (i) first, to the Holders of REMIC II Regular Interest
         LTII-IO, in an amount equal to (A) the Uncertificated Accrued Interest
         for such REMIC II Regular Interest for such Distribution Date, plus (B)
         any amounts in respect thereof remaining unpaid from previous
         Distribution Dates and then to Holders of REMIC II Regular Interest
         LTII-AA, REMIC Regular Interest LTII-A1, REMIC Regular Interest
         LTII-A2, REMIC Regular Interest LTII-A3, REMIC Regular Interest
         LTII-A4, REMIC Regular Interest

                                      -76-
<PAGE>

         LTII-A5, REMIC Regular Interest LTII-A6, REMIC II Regular Interest
         LTII-M1, REMIC II Regular Interest LTII-M2, REMIC II Regular Interest
         LTII-M3, REMIC II Regular Interest LTII-ZZ and REMIC II Regular
         Interest LTII-P, pro rata, in an amount equal to (A) the Uncertificated
         Accrued Interest for each such REMIC II Regular Interest for such
         Distribution Date, plus (B) any amounts in respect thereof remaining
         unpaid from previous Distribution Dates. Amounts payable as
         Uncertificated Accrued Interest in respect of REMIC II Regular Interest
         LTII-ZZ shall be reduced and deferred when the REMIC II
         Overcollateralization Amount is less than the REMIC II
         Overcollateralization Target Amount, by the lesser of (x) the amount of
         such difference and (y) the REMIC II Regular Interest LTII-ZZ Maximum
         Interest Deferral Amount and such amount will be payable to the Holders
         of REMIC Regular Interest LTII-A1, REMIC Regular Interest LTII-A2,
         REMIC Regular Interest LTII-A3, REMIC Regular Interest LTII-A4, REMIC
         Regular Interest LTII-A5, REMIC Regular Interest LTII-A6, REMIC II
         Regular Interest LTII-M1, REMIC II Regular Interest LTII-M2, REMIC II
         Regular Interest LTII-M3 in the same proportion as the
         Overcollateralization Increase Amount is allocated to the Corresponding
         Certificates;

                  (ii) second, to the Holders of REMIC II Regular Interests, in
         an amount equal to the remainder of the Available Distribution Amount
         for such Distribution Date after the distributions made pursuant to
         clause (i) above, allocated as follows:

                  (a) to the Holders of REMIC II Regular Interest LTII-AA and
REMIC II Regular Interest LTII-P, 98.00% of such remainder (other than amounts
payable under clause (d) below), until the Uncertificated Principal Balance of
such REMIC II Regular Interest is reduced to zero, provided, however, that the
Uncertificated Principal Balance of REMIC II Regular Interest LTII-P shall not
be reduced until the Distribution Date in September 2008 or any Distribution
Date thereafter, at which point such amount shall be distributed to REMIC II
Regular Interest LTII-P, until $100 has been distributed pursuant to this
clause;

                  (b) to the Holders of REMIC Regular Interest LTII-A1, REMIC
Regular Interest LTII-A2, REMIC Regular Interest LTII-A3, REMIC Regular Interest
LTII-A4, REMIC Regular Interest LTII-A5, REMIC Regular Interest LTII-A6, REMIC
II Regular Interest LTII-M1, REMIC II Regular Interest LTII-M2, REMIC II Regular
Interest LTII-M3, 1.00% of such remainder (other than amounts payable under
clause (d) below), in the same proportion as principal payments are allocated to
the Corresponding Certificates, until the Uncertificated Principal Balances of
such REMIC II Regular Interests are reduced to zero;

                  (c) to the Holders of REMIC II Regular Interest LTII-ZZ, 1.00%
of such remainder (other than amounts payable under the proviso below), until
the Uncertificated Principal Balance of such REMIC II Regular Interest is
reduced to zero; then

                  (d) any remaining amount to the Holders of the Class R
Certificates; and

                  (iii) third, to REMIC II Regular Interest LTII-P, 100% of the
         amount paid in respect of REMIC I Regular Interest LTI-P;

         provided, however, that (i) 98.00% and (ii) 2.00% of any principal
payments that are attributable to an Overcollateralization Release Amount shall
be allocated to Holders of (i)

                                      -77-
<PAGE>

REMIC II Regular Interest LTII-AA and REMIC II Regular Interest LTII-P, in that
order and (ii) REMIC II Regular Interest LTII-ZZ, respectively; provided that
REMIC II Regular Interest LTII-P shall not be reduced until the Distribution
Date in September 2008, at which point such amount shall be distributed to REMIC
II Regular Interest LTII-P, until $100 has been distributed pursuant to this
clause.

                                      -78-
<PAGE>

                                   ARTICLE V
                                THE CERTIFICATES

         Section 5.1 THE CERTIFICATES.

                  (a) Each of the Certificates shall be substantially in the
forms annexed hereto as exhibits, and shall, on original issue, be executed and
authenticated by the Securities Administrator and delivered by the Trustee to or
upon the receipt of a written order to authenticate from the Depositor
concurrently with the sale and assignment to the Trustee of the Trust Fund. The
Certificates shall be issuable in Authorized Denominations.

         The Certificates shall be executed by manual or facsimile signature on
behalf of the Trust Fund by a Responsible Officer of the Securities
Administrator. Certificates bearing the manual or facsimile signatures of
individuals who were, at the time such signatures were affixed, authorized to
sign on behalf of the Securities Administrator shall bind the Trust Fund,
notwithstanding that such individuals or any of them have ceased to be so
authorized prior to the authentication and delivery of such Certificates or did
not hold such offices at the date of such Certificate. No Certificate shall be
entitled to any benefit under this Agreement or be valid for any purpose, unless
such Certificate shall have been manually authenticated by the Securities
Administrator substantially in the form provided for herein, and such
authentication upon any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly authenticated and delivered
hereunder. All Certificates shall be dated the date of their authentication.
Subject to Section 5.3, the Class A Certificates and Class M Certificates shall
be Book-Entry Certificates. On the Closing Date, the Class CE, Class P and Class
R Certificates shall not be Book-Entry Certificates but shall be issued in fully
registered certificate form.

                  (b) Neither the Trustee nor the Securities Administrator shall
have any liability to the Trust Fund and shall be indemnified by the Trust Fund
for, any cost, liability or expense incurred by them arising from a registration
of a Certificate or transfer, pledge sale or other disposition of a Certificate
in reliance upon a certification, Officer's Certificate, affidavit, ruling or
Opinion of Counsel described in this Article V.

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

         Section 5.3 REGISTRATION OF TRANSFER AND EXCHANGE OF CERTIFICATES. (a)
The Securities Administrator shall cause to be kept at its Corporate Trust
Office a Certificate Register in which,

                                      -79-
<PAGE>

subject to such reasonable regulations as it may prescribe, the Securities
Administrator shall provide for the registration of Certificates and of
transfers and exchanges of Certificates as herein provided.

         Upon surrender for registration of transfer of any Certificate at the
Corporate Trust Office of the Securities Administrator maintained for such
purpose pursuant to the foregoing paragraph for certificate transfer and
surrender purposes, and, in the case of the Class CE Certificates, the Class P
Certificates or the Class R Certificates, upon satisfaction of the conditions
set forth in Sections 5.3(c), (d) and (e) below, as applicable, the Securities
Administrator on behalf of the Trust shall execute, authenticate and deliver, in
the name of the designated transferee or transferees, one or more new
Certificates of the same aggregate Percentage Interest.

         At the option of the Certificateholders, Certificates may be exchanged
for other Certificates in authorized denominations and the same aggregate
Percentage Interests, upon surrender of the Certificates to be exchanged at any
such office or agency. Whenever any Certificates are so surrendered for
exchange, the Securities Administrator shall execute, authenticate and deliver
the Certificates which the Certificateholder making the exchange is entitled to
receive. Every Certificate presented or surrendered for registration of transfer
or exchange shall (if so required by the Trustee or the Securities
Administrator) be duly endorsed by, or be accompanied by a written instrument of
transfer satisfactory to the Trustee and the Securities Administrator duly
executed by, the Holder thereof or his attorney duly authorized in writing.

                  (a) Except as provided herein, the Book-Entry Certificates
shall at all times remain registered in the name of the Depository or its
nominee and at all times: (i) registration of such Certificates may not be
transferred by the Trustee or the Securities Administrator except to another
Depository; (ii) the Depository shall maintain book-entry records with respect
to the Certificate Owners and with respect to ownership and transfers of such
Certificates; (iii) ownership and transfers of registration of such Certificates
on the books of the Depository shall be governed by applicable rules established
by the Depository; (iv) the Depository may collect its usual and customary fees,
charges and expenses from its Depository Participants; (v) the Trustee and the
Securities Administrator shall for all purposes deal with the Depository as
representative of the Certificate Owners of the Certificates for purposes of
exercising the rights of Holders under this Agreement, and requests and
directions for and votes of such representative shall not be deemed to be
inconsistent if they are made with respect to different Certificate Owners; (vi)
the Trustee and the Securities Administrator may rely and shall be fully
protected in relying upon information furnished by the Depository with respect
to its Depository Participants and furnished by the Depository Participants with
respect to indirect participating firms and Persons shown on the books of such
indirect participating firms as direct or indirect Certificate Owners; and (vii)
the direct participants of the Depository shall have no rights under this
Agreement under or with respect to any of the Certificates held on their behalf
by the Depository, and the Depository may be treated by the Trustee, the
Securities Administrator and either the Trustee's or the Securities
Administrator's agents, employees, officers and directors as the absolute owner
of the Certificates for all purposes whatsoever.

         All transfers by Certificate Owners of Book-Entry Certificates shall be
made in accordance with the procedures established by the Depository Participant
or brokerage firm

                                      -80-
<PAGE>

representing such Certificate Owners. Each Depository Participant shall only
transfer Book-Entry Certificates of Certificate Owners that it represents or of
brokerage firms for which it acts as agent in accordance with the Depository's
normal procedures. The parties hereto are hereby authorized to execute a Letter
of Representations with the Depository or take such other action as may be
necessary or desirable to register a Book-Entry Certificate to the Depository.
In the event of any conflict between the terms of any such Letter of
Representation and this Agreement, the terms of this Agreement shall control.

                  (b) If (i)(x) the Depository or the Depositor advises the
Securities Administrator in writing that the Depository is no longer willing or
able to discharge properly its responsibilities as Depository and (y) the
Securities Administrator or the Depositor is unable to locate a qualified
successor, (ii) the Depositor, at its sole option, with the consent of the
Securities Administrator, elects to terminate the book-entry system through the
Depository or (iii) after the occurrence of a Master Servicer Event of Default,
the Certificate Owners of the Book-Entry Certificates representing Percentage
Interests of such Classes aggregating not less than 66% advise the Securities
Administrator and Depository through the Depository Participants in writing that
the continuation of a book-entry system through the Depository is no longer in
the best interests of the Certificate Owners, the Securities Administrator shall
notify all Holders of Book-Entry Certificates of the occurrence of any such
event and of the availability of definitive, fully registered Certificates
("Definitive Certificates") to Certificate Owners requesting the same. Upon
surrender to the Securities Administrator of the Book-Entry Certificates by the
Depository, accompanied by registration instructions from the Depository for
registration, the Securities Administrator shall, at the Depositor's expense, in
the case of (i) and (ii) above, or the Master Servicer's expense, in the case of
(iii) above, execute on behalf of the Trust and authenticate the Definitive
Certificates. None of the Depositor, the Master Servicer, the Trustee or the
Securities Administrator shall be liable for any delay in delivery of such
instructions and may conclusively rely on, and shall be protected in relying on,
such instructions. Upon the issuance of Definitive Certificates, the Trustee,
the Securities Administrator, the Master Servicer and the Depositor shall
recognize the Holders of the Definitive Certificates as Certificateholders
hereunder.

                  (c) No Transfer of a Class CE Certificate, Class P Certificate
or Class R Certificate shall be made unless such Transfer is made pursuant to an
effective registration statement under the Securities Act of 1933, as amended
(the "1933 Act") and any applicable state securities laws or is exempt from the
registration requirements under the 1933 Act and such state securities laws. In
the event of any such transfer in reliance upon an exemption from the 1933 Act
and such state securities laws, in order to assure compliance with the 1933 Act
and such state securities laws, the Certificateholder desiring to effect such
Transfer and such Certificateholder's prospective Transferee shall each certify
to the Trustee and the Securities Administrator in writing the facts surrounding
the Transfer in substantially the forms set forth in Exhibit D (the "TRANSFEROR
CERTIFICATE") and (x) deliver a letter in substantially the form of either
Exhibit E (the "Investment Letter") or Exhibit F (the "Rule 144A Letter") or (y)
there shall be delivered to the Trustee, the Depositor and the Securities
Administrator an Opinion of Counsel acceptable to and in form reasonably
satisfactory to the Trustee, the Depositor and the Securities Administrator that
such Transfer may be made pursuant to an exemption from the Securities Act,
which Opinion of Counsel shall not be an expense of the Depositor, the Seller,
the Master Servicer, the Securities Administrator or the Trustee. Each Holder of
a Class CE Certificate,

                                      -81-
<PAGE>

Class P Certificate or Class R Certificate desiring to effect such Transfer
shall, and does hereby agree to, indemnify the Trustee, the Depositor, the
Seller, the Securities Administrator and the Master Servicer against any
liability that may result if the Transfer is not so exempt or is not made in
accordance with such federal and state laws.

                  (d) No transfer of a Class CE Certificate, Class P Certificate
or Class R Certificate or any interest therein shall be made to any Plan subject
to ERISA or Section 4975 of the Code (each, a "Plan"), any Person acting,
directly or indirectly, on behalf of any such Plan or any Person acquiring such
Certificates with "Plan Assets" of a Plan within the meaning of the Department
of Labor regulation promulgated at 29 C.F.R. ss. 2510.3-101 ("Plan Assets"), as
certified by each such Transferee in the form of Exhibit G, unless the
Securities Administrator is provided with an Opinion of Counsel for the benefit
of the Depositor, the Master Servicer, the Trustee, the Securities Administrator
and the Master Servicer and on which they may rely which establishes to the
satisfaction of each of them that the purchase of such Certificates is
permissible under applicable law, will not constitute or result in any
prohibited transaction under ERISA or Section 4975 of the Code and will not
subject the Depositor, the Master Servicer, the Trustee, the Securities
Administrator or the Trust Fund to any obligation or liability (including
obligations or liabilities under ERISA or Section 4975 of the Code) in addition
to those undertaken in this Agreement, which Opinion of Counsel shall not be an
expense of the Depositor, the Master Servicer, the Trustee, the Securities
Administrator or the Trust Fund. Neither a certification nor an Opinion of
Counsel will be required in connection with the initial transfer of any such
Certificate by the Depositor to an affiliate of the Depositor (in which case,
the Depositor or any affiliate thereof shall have deemed to have represented
that such affiliate is not a Plan or a Person investing Plan Assets) and the
Trustee and the Securities Administrator shall be entitled to conclusively rely
upon a representation (which, upon the request of the Trustee or the Securities
Administrator, shall be a written representation) from the Depositor of the
status of such transferee as an affiliate of the Depositor.

         Each Transferee of a Class M Certificate will be deemed to have
represented by virtue of its purchase or holding of such Certificate (or
interest therein) that either (a) such Transferee is not a Plan or purchasing
such Certificate with Plan Assets, (b) it has acquired and is holding such
Certificate in reliance on Prohibited Transaction Exemption ("PTE") 94-84 or FAN
97-03, as amended by PTE 97-34, 62 Fed. Reg. 39021 (July 21, 1997), PTE 2000-58,
65 Fed. Reg. 67765 (November 13, 2000) and PTE 2002-41 67 Fed. Reg. 54487
(August 22, 2002) (the "Exemption"), and that it understands that there are
certain conditions to the availability of the Exemption including that such
Certificate must be rated, at the time of purchase, not lower than "BBB-" (or
its equivalent) by a Rating Agency or (c) the following conditions are
satisfied: (i) such Transferee is an insurance company, (ii) the source of funds
used to purchase or hold such Certificate (or interest therein) is an "insurance
company general account" (as defined in U.S. Department of Labor Prohibited
Transaction Class Exemption ("PTCE") 95-60, and (iii) the conditions set forth
in Sections I and III of PTCE 95-60 have been satisfied.

         If any Class M Certificate, Class CE Certificate, Class P Certificate
or Class R Certificate or any interest therein is acquired or held in violation
of the provisions of this Section 5.3(d), the next preceding permitted
beneficial owner will be treated as the beneficial owner of that Certificate
retroactive to the date of transfer to the purported beneficial owner. Any
purported beneficial owner whose acquisition or holding of any such Certificate
or interest therein was

                                      -82-
<PAGE>

effected in violation of the provisions of the two preceding paragraphs shall
indemnify and hold harmless the Depositor, the Master Servicer, the Trustee, the
Securities Administrator and the Trust from and against any and all liabilities,
claims, costs or expenses incurred by those parties as a result of that
acquisition or holding.

                  (e) Each Transferee of a Class R Certificate shall be deemed
by the acceptance or acquisition of the related Ownership Interest to have
agreed to be bound by the following provisions and to have irrevocably appointed
the Depositor or its designee as its attorney-in-fact to negotiate the terms of
any mandatory sale under clause (v) below and to execute all instruments of
transfer and to do all other things necessary in connection with any such sale,
and the rights of each Transferee of a Class R Certificate are expressly subject
to the following provisions:

                  (i) Each such Transferee shall be a Permitted Transferee and
         shall promptly notify the Securities Administrator of any change or
         impending change in its status as a Permitted Transferee.

                  (ii) No Person shall acquire an Ownership Interest in a Class
         R Certificate unless such Ownership Interest is a PRO RATA undivided
         interest.

                  (iii) In connection with any proposed transfer of any
         Ownership Interest in a Class R Certificate, the Securities
         Administrator shall as a condition to registration of the transfer,
         require delivery to it, in form and substance satisfactory to it, of
         each of the following:

                           (A) an affidavit in the form of Exhibit C hereto from
                  the proposed Transferee to the effect that such Transferee is
                  a Permitted Transferee and that it is not acquiring its
                  Ownership Interest in the Class R Certificate that is the
                  subject of the proposed transfer as a nominee, trustee or
                  agent for any Person who is not a Permitted Transferee; and

                           (B) a covenant of the proposed Transferee to the
                  effect that the proposed Transferee agrees to be bound by and
                  to abide by the transfer restrictions applicable to the Class
                  R Certificates.

                  (iv) Any attempted or purported transfer of any Ownership
         Interest in a Class R Certificate in violation of the provisions of
         this Section shall be absolutely null and void and shall vest no rights
         in the purported Transferee. If any purported Transferee shall, in
         violation of the provisions of this Section, become a Holder of a Class
         R Certificate, then the prior Holder of such Class R Certificate that
         is a Permitted Transferee shall, upon discovery that the registration
         of transfer of such Class R Certificate was not in fact permitted by
         this Section, be restored to all rights as Holder thereof retroactive
         to the date of registration of transfer of such Class R Certificate.
         The Securities Administrator shall be under no liability to any Person
         for any registration of transfer of a Class R Certificate that is in
         fact not permitted by this Section or for making any distributions due
         on such Class R Certificate to the Holder thereof or taking any other
         action with respect to such Holder under the provisions of this
         Agreement so long as the Securities Administrator received the
         documents specified in clause (iii).

                                      -83-
<PAGE>

         The Securities Administrator shall be entitled to recover from any
         Holder of a Class R Certificate that was in fact not a Permitted
         Transferee at the time such distributions were made all distributions
         made on such Class R Certificate. Any such distributions so recovered
         by the Securities Administrator shall be distributed and delivered by
         the Securities Administrator to the prior Holder of such Class R
         Certificate that is a Permitted Transferee.

                  (v) If any Person other than a Permitted Transferee acquires
         any Ownership Interest in a Class R Certificate in violation of the
         restrictions in this Section, then the Securities Administrator shall
         have the right but not the obligation, without notice to the Holder of
         such Class R Certificate or any other Person having an Ownership
         Interest therein, to notify the Depositor to arrange for the sale of
         such Class R Certificate. The proceeds of such sale, net of commissions
         (which may include commissions payable to the Depositor or its
         affiliates in connection with such sale), expenses and taxes due, if
         any, will be remitted by the Securities Administrator to the previous
         Holder of such Class R Certificate that is a Permitted Transferee,
         except that in the event that the Securities Administrator determines
         that the Holder of such Class R Certificate may be liable for any
         amount due under this Section or any other provisions of this
         Agreement, the Securities Administrator may withhold a corresponding
         amount from such remittance as security for such claim. The terms and
         conditions of any sale under this clause (v) shall be determined in the
         sole discretion of the Securities Administrator and it shall not be
         liable to any Person having an Ownership Interest in a Class R
         Certificate as a result of its exercise of such discretion.

                  (vi) If any Person other than a Permitted Transferee acquires
         any Ownership Interest in a Class R Certificate in violation of the
         restrictions in this Section, then the Securities Administrator upon
         receipt of reasonable compensation will provide to the Internal Revenue
         Service, and to the persons specified in Sections 860E(e)(3) and (6) of
         the Code, information needed to compute the tax imposed under Section
         860E(e)(5) of the Code on transfers of Class R interests to
         Disqualified Organizations.

         The foregoing provisions of this Section shall cease to apply to
transfers occurring on or after the date on which there shall have been
delivered to the Securities Administrator, in form and substance satisfactory to
the Securities Administrator, (i) written notification from each Rating Agency
that the removal of the restrictions on transfer set forth in this Section will
not cause such Rating Agency to downgrade its rating of the Certificates and
(ii) an Opinion of Counsel to the effect that such removal will not cause any
REMIC created hereunder to fail to qualify as a REMIC. The Holder of the Class R
Certificate issued hereunder, while not a Disqualified Organization, is the Tax
Matters Person.

                  (f) No service charge shall be made for any registration of
transfer or exchange of Certificates of any Class, but the Securities
Administrator may require payment of a sum sufficient to cover any tax or
governmental charge that may be imposed in connection with any transfer or
exchange of Certificates.

         All Certificates surrendered for registration of transfer or exchange
shall be canceled by the Securities Administrator and disposed of pursuant to
its standard procedures.

                                      -84-
<PAGE>

         Section 5.4 Mutilated, Destroyed, Lost or Stolen Certificates.

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

         Section 5.5 PERSONS DEEMED OWNERS.

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

                                      -85-
<PAGE>

                                   ARTICLE VI
           THE DEPOSITOR, MASTER SERVICER AND THE CREDIT RISK MANAGER

         Section 6.1 LIABILITY OF THE DEPOSITOR AND THE MASTER SERVICER.

         The Depositor and the Master Servicer each shall be liable in
accordance herewith only to the extent of the obligations specifically imposed
by this Agreement upon them in their respective capacities as Depositor and
Master Servicer and undertaken hereunder by the Depositor and the Master
Servicer herein.

         Section 6.2 MERGER OR CONSOLIDATION OF THE DEPOSITOR OR THE MASTER
SERVICER.

         Subject to the following paragraph, the Depositor shall keep in full
effect its existence, rights and franchises as a corporation under the laws of
the jurisdiction of its incorporation. Subject to the following paragraph, the
Master Servicer shall keep in full effect its existence, rights and franchises
as a corporation under the laws of the jurisdiction of its formation. The
Depositor and the Master Servicer each shall obtain and preserve its
qualification to do business as a foreign corporation in each jurisdiction in
which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, the Certificates or any of the Loans and to
perform its respective duties under this Agreement.

         The Depositor or the Master Servicer may be merged or consolidated with
or into any Person, or transfer all or substantially all of its assets to any
Person, in which case any Person resulting from any merger or consolidation to
which the Depositor or the Master Servicer shall be a party, or any Person
succeeding to the business of the Depositor or the Master Servicer, shall be the
successor of the Depositor or the Master Servicer, as the case may be,
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding; provided, however, the Rating Agencies' ratings of the
Certificates in effect immediately prior to such merger or consolidation will
not be qualified, reduced or withdrawn as a result thereof (as evidenced by a
letter to such effect from the Rating Agencies).

         Section 6.3 LIMITATION ON LIABILITY OF THE DEPOSITOR, THE MASTER
SERVICER, THE SERVICERS, THE SECURITIES ADMINISTRATOR AND OTHERS.

         None of the Depositor, the Master Servicer, the Securities
Administrator, the Servicers or any of the directors, officers, employees or
agents of the Depositor, the Master Servicer, the Securities Administrator or
the Servicers shall be under any liability to the Trust Fund or the
Certificateholders for any action taken or for refraining from the taking of any
action in good faith pursuant to this Agreement or the Servicing Agreements, or
for errors in judgment; provided, however, that this provision shall not protect
the Depositor, the Master Servicer, the Securities Administrator or any such
person against any breach of warranties, representations or covenants made
herein or in the Servicing Agreements, or against any specific liability imposed
on the Master Servicer, the Securities Administrator or the Servicers pursuant
hereto or pursuant to the Servicing Agreements, or against any liability which
would otherwise be imposed by reason of willful misfeasance, bad faith or gross
negligence in the performance of duties or by reason of reckless disregard of
obligations and duties hereunder or under the Servicing

                                      -86-
<PAGE>

Agreements. The Depositor, the Master Servicer, the Securities Administrator,
the Servicers and any director, officer, employee or agent of the Depositor, the
Master Servicer, the Securities Administrator or the Servicers may rely in good
faith on any document of any kind which, PRIMA FACIE, is properly executed and
submitted by any Person respecting any matters arising hereunder or under the
Servicing Agreements. The Depositor, the Master Servicer, the Servicers, the
Securities Administrator, the Custodian and any director, officer, employee or
agent of the Depositor, the Master Servicer, the Servicers, the Custodian or the
Securities Administrator shall be indemnified and held harmless by the Trust
Fund against any loss, liability or expense incurred in connection with any
legal action relating to this Agreement, the Certificates or any Servicing
Agreement, or any loss, liability or expense incurred by any of such Persons
other than by reason of such Person's willful misfeasance, bad faith or gross
negligence in the performance of its duties hereunder or by reason of reckless
disregard of its obligations and duties hereunder. None of the Depositor, the
Master Servicer, the Securities Administrator, the Custodian or any Servicer
shall be under any obligation to appear in, prosecute or defend any legal action
unless such action is related to its respective duties under this Agreement, the
Custodial Agreement or the applicable Servicing Agreement and, in its opinion,
does not involve it in any expense or liability; provided, however, that each of
the Depositor, the Master Servicer, the Custodian and the Securities
Administrator may in its discretion undertake any such action which it may deem
necessary or desirable with respect to this Agreement and the rights and duties
of the parties hereto and the interests of the Certificateholders hereunder. In
such event, the legal expenses and costs of such action and any liability
resulting therefrom (except any loss, liability or expense incurred by reason of
willful misfeasance, bad faith or gross negligence in the performance of duties
hereunder or by reason of reckless disregard of obligations and duties
hereunder) shall be expenses, costs and liabilities of the Trust Fund, and the
Depositor, the Master Servicer, the Custodian, the Servicers and the Securities
Administrator shall be entitled to be reimbursed therefor from the Distribution
Account as and to the extent provided in Article III, any such right of
reimbursement being prior to the rights of the Certificateholders to receive any
amount in the Distribution Account.

         Section 6.4 LIMITATION ON RESIGNATION OF THE MASTER SERVICER.

         The Master Servicer shall not resign from the obligations and duties
hereby imposed on it except upon determination that its duties hereunder are no
longer permissible under applicable law. Any such determination pursuant to the
preceding sentence permitting the resignation of the Master Servicer shall be
evidenced by an Opinion of Counsel to such effect obtained at the expense of the
Master Servicer and delivered to the Trustee and the Rating Agencies. No
resignation of the Master Servicer shall become effective until the Trustee or a
successor Master Servicer shall have assumed the Master Servicer's
responsibilities, duties, liabilities (other than those liabilities arising
prior to the appointment of such successor) and obligations under this
Agreement.

         Section 6.5 ASSIGNMENT OF MASTER SERVICING.

         The Master Servicer may sell and assign its rights and delegate its
duties and obligations in its entirety as Master Servicer under this Agreement;
provided, however, that: (i) the purchaser or transferee accepting such
assignment and delegation (a) shall be a Person which shall be qualified to
service mortgage loans for Fannie Mae or Freddie Mac; (b) shall have a net worth
of

                                      -87-
<PAGE>

not less than $15,000,000 (unless otherwise approved by each Rating Agency
pursuant to clause (ii) below); (c) shall be reasonably satisfactory to the
Trustee (as evidenced in a writing signed by the Trustee); and (d) shall execute
and deliver to the Trustee an agreement, in form and substance reasonably
satisfactory to the Trustee, which contains an assumption by such Person of the
due and punctual performance and observance of each covenant and condition to be
performed or observed by it as master servicer under this Agreement, any
custodial agreement from and after the effective date of such agreement; (ii)
each Rating Agency shall be given prior written notice of the identity of the
proposed successor to the Master Servicer and each Rating Agency's rating of the
Certificates in effect immediately prior to such assignment, sale and delegation
will not be downgraded, qualified or withdrawn as a result of such assignment,
sale and delegation, as evidenced by a letter to such effect delivered to the
Master Servicer and the Trustee; and (iii) the Master Servicer assigning and
selling the master servicing shall deliver to the Trustee an officer's
certificate and an Opinion of Independent counsel, each stating that all
conditions precedent to such action under this Agreement have been completed and
such action is permitted by and complies with the terms of this Agreement. No
such assignment or delegation shall affect any liability of the Master Servicer
arising prior to the effective date thereof.

         Section 6.6 RIGHTS OF THE DEPOSITOR IN RESPECT OF THE MASTER SERVICER.

         The Master Servicer shall afford the Depositor and the Trustee, upon
reasonable notice, during normal business hours, access to all records
maintained by the Master Servicer in respect of the Master Servicer's rights and
obligations hereunder and access to officers of the Master Servicer responsible
for such obligations. Upon request, the Master Servicer shall furnish to the
Depositor and the Trustee the most recent financial statements of its parent and
such other information relating to the Master Servicer's capacity to perform its
obligations under this Agreement as it possesses. To the extent such information
is not otherwise available to the public, the Depositor and the Trustee shall
not disseminate any information obtained pursuant to the preceding two sentences
without the Master Servicer's written consent, except as required pursuant to
this Agreement or to the extent that it is appropriate to do so (i) in working
with legal counsel, auditors, taxing authorities or other governmental agencies
or (ii) pursuant to any law, rule, regulation, order, judgment, writ, injunction
or decree of any court or governmental authority having jurisdiction over the
Depositor, the Trustee or the Trust, and in any case, the Depositor or the
Trustee, as the case may be, shall use its best efforts to assure the
confidentiality of any such disseminated non-public information. The Depositor
may, but is not obligated to, enforce the obligations of the Master Servicer
under this Agreement and may, but is not obligated to, perform, or cause a
designee to perform, any defaulted obligation of the Master Servicer under this
Agreement or exercise the rights of the Master Servicer under this Agreement;
provided that the Master Servicer shall not be relieved of any of its
obligations under this Agreement by virtue of such performance by the Depositor
or its designee. The Depositor shall not have any responsibility or liability
for any action or failure to act by the Master Servicer and is not obligated to
supervise the performance of the Master Servicer under this Agreement or
otherwise.

                                      -88-
<PAGE>

         Section 6.7 DUTIES OF THE CREDIT RISK MANAGER.

         For and on behalf of the Depositor, pursuant to the Credit Risk
Management Agreements the Credit Risk Manager will provide reports and
recommendations concerning certain delinquent and defaulted Loans, and as to the
collection of any Prepayment Charges with respect to the Loans. Such reports and
recommendations will be based upon information provided to the Credit Risk
Manager pursuant to the related Credit Risk Management Agreement, and the Credit
Risk Manager shall look solely to the related Servicer for all information and
data (including loss and delinquency information and data) relating to the
servicing of the related Loans. Upon any termination of the Credit Risk Manager
or the appointment of a successor Credit Risk Manager, the Depositor shall give
written notice thereof to the Servicers, the Master Servicer, the Trustee, and
each Rating Agency. Notwithstanding the foregoing, the termination of the Credit
Risk Manager pursuant to this Section shall not become effective until the
appointment of a successor Credit Risk Manager.

         Section 6.8 LIMITATION UPON LIABILITY OF THE CREDIT RISK MANAGER.

         Neither the Credit Risk Manager, nor any of its directors, officers,
employees, or agents shall be under any liability to the Trustee, the
Certificateholders, or the Depositor for any action taken or for refraining from
the taking of any action made in good faith pursuant to this Agreement, in
reliance upon information provided by a Servicer under a Credit Risk Management
Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Credit Risk Manager or any such person against liability
that would otherwise be imposed by reason of willful malfeasance or bad faith in
its performance of its duties. The Credit Risk Manager and any director,
officer, employee, or agent of the Credit Risk Manager 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, and may rely in good faith upon
the accuracy of information furnished by a Servicer pursuant to a Credit Risk
Management Agreement in the performance of its duties thereunder and hereunder.

         Section 6.9 REMOVAL OF THE CREDIT RISK MANAGER.

         The Credit Risk Manager may be removed as Credit Risk Manager by
Certificateholders holding not less than 66 2/3% of the Voting Rights in the
Trust Fund, in the exercise of its or their sole discretion. The
Certificateholders shall provide written notice of the Credit Risk Manager's
removal to the Trustee. Upon receipt of such notice, the Trustee shall provide
written notice to the Credit Risk Manager of its removal, which shall be
effective upon receipt of such notice by the Credit Risk Manager.

                                      -89-
<PAGE>

                                  ARTICLE VII
                                     DEFAULT

         Section 7.1 MASTER SERVICER EVENTS OF DEFAULT.

                  (a) "Master Servicer Event of Default," wherever used herein,
means any one of the following events:

                  (i) [Reserved];

                  (ii) any failure on the part of the Master Servicer duly to
         observe or perform in any material respect any other of the covenants
         or agreements on the part of the Master Servicer contained in this
         Agreement, or the breach by the Master Servicer of any representation
         and warranty contained in Section 2.5, which continues unremedied for a
         period of 30 days after the date on which written notice of such
         failure, requiring the same to be remedied, shall have been given to
         the Master Servicer by the Depositor or the Trustee or to the Master
         Servicer, the Depositor and the Trustee by the Holders of Certificates
         evidencing, in aggregate, not less than 25% of the Trust Fund; or

                  (iii) a decree or order of a court or agency or supervisory
         authority having jurisdiction in the premises in an involuntary case
         under any present or future federal or state bankruptcy, insolvency or
         similar law or the appointment of a conservator or receiver or
         liquidator in any insolvency, readjustment of debt, marshalling of
         assets and liabilities or similar proceeding, or for the winding-up or
         liquidation of its affairs, shall have been entered against the Master
         Servicer and such decree or order shall have remained in force
         undischarged or unstayed for a period of 90 days; or

                  (iv) the Master Servicer shall consent to the appointment of a
         conservator or receiver or liquidator in any insolvency, readjustment
         of debt, marshalling of assets and liabilities or similar proceedings
         of or relating to it or of or relating to all or substantially all of
         its property; or

                  (v) the Master Servicer shall admit in writing its inability
         to pay its debts generally as they become due, file a petition to take
         advantage of any applicable insolvency or reorganization statute, make
         an assignment for the benefit of its creditors, or voluntarily suspend
         payment of its obligations; or

                  (vi) any failure of the Master Servicer to make any Advance on
         any Distribution Account Deposit Date required to be made from its own
         funds pursuant to Section 4.4 which continues unremedied until 3:00
         p.m. New York time on the Business Day immediately following the
         Distribution Account Deposit Date.

If a Master Servicer Event of Default described in clauses (ii) through (v) of
this Section shall occur, then, and in each and every such case, so long as such
Master Servicer Event of Default shall not have been remedied, the Depositor or
the Trustee may, and at the written direction of the Holders of Certificates
evidencing, in aggregate, not less than 51% of the Trust Fund, the Trustee
shall, by notice in writing to the Master Servicer (and to the Depositor if
given by the

                                      -90-
<PAGE>

Trustee or to the Trustee if given by the Depositor) with a copy to each Rating
Agency, terminate all of the rights and obligations of the Master Servicer in
its capacity as Master Servicer under this Agreement, to the extent permitted by
law, and in and to the Loans and the proceeds thereof. Except as otherwise
provided in Section 7.4, if a Master Servicer Event of Default described in
clause (vi) hereof shall occur, the Trustee shall, by notice in writing to the
Master Servicer and the Depositor, terminate all of the rights and obligations
of the Master Servicer in its capacity as Master Servicer under this Agreement
and in and to the Loans and the proceeds thereof. On or after the receipt by the
Master Servicer of such written notice, all authority and power of the Master
Servicer under this Agreement, whether with respect to the Certificates (other
than as a Holder of any Certificate) or the Loans or otherwise, shall pass to
and be vested in the Trustee pursuant to and under this Section, and, without
limitation, the Trustee is hereby authorized and empowered, as attorney-in-fact
or otherwise, to execute and deliver, on behalf of and at the expense of the
Master Servicer, any and all documents and other instruments and to do or
accomplish all other acts or things necessary or appropriate to effect the
purposes of such notice of termination, whether to complete the transfer and
endorsement or assignment of the Loans and related documents, or otherwise. The
Master Servicer agrees promptly (and in any event no later than ten Business
Days subsequent to such notice) to provide the Trustee with all documents and
records requested by it to enable it to assume the Master Servicer's functions
under this Agreement, and to cooperate with the Trustee in effecting the
termination of the Master Servicer's responsibilities and rights under this
Agreement (provided, however, that the Master Servicer shall continue to be
entitled to receive all amounts accrued or owing to it under this Agreement on
or prior to the date of such termination, whether in respect of Advances or
otherwise, and shall continue to be entitled to the benefits of Section 6.3,
notwithstanding any such termination, with respect to events occurring prior to
such termination). For purposes of this Section 7.1, the Trustee shall not be
deemed to have knowledge of a Master Servicer Event of Default unless a
Responsible Officer of the Trustee assigned to and working in the Trustee's
Corporate Trust Office has actual knowledge thereof or unless written notice of
any event which is in fact such a Master Servicer Event of Default is received
by the Trustee and such notice references the Certificates, the Trust or this
Agreement. The Trustee shall promptly notify the Rating Agencies of the
occurrence of a Master Servicer Event of Default of which it has knowledge as
provided above.

         Section 7.2 TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR.

         On and after the time the Master Servicer receives a notice of
termination, the Trustee shall be the successor in all respects to the Master
Servicer in its capacity as Master Servicer under this Agreement and the
transactions set forth or provided for herein, and all the responsibilities,
duties and liabilities relating thereto and arising thereafter shall be assumed
by the Trustee (except for any representations or warranties of the Master
Servicer under this Agreement, the responsibilities, duties and liabilities
contained in Section 2.3 and the obligation to deposit amounts in respect of
losses pursuant to Section 3.23(c)) by the terms and provisions hereof
including, without limitation, the Master Servicer's obligations to make
Advances no later than each Distribution Date pursuant to Section 4.4; provided,
however, that if the Trustee is prohibited by law or regulation from obligating
itself to make advances regarding delinquent mortgage loans, then the Trustee
shall not be obligated to make Advances pursuant to Section 4.4; and provided
further, that any failure to perform such duties or responsibilities caused by
the Master Servicer's failure to provide information required by Section 7.1
shall not be considered a

                                      -91-
<PAGE>

default by the Trustee as successor to the Master Servicer hereunder. As
compensation therefor, the Trustee shall be entitled to the Master Servicing Fee
and all funds relating to the Loans, investment earnings on the Distribution
Account and all other remuneration to which the Master Servicer would have been
entitled if it had continued to act hereunder. Notwithstanding the above and
subject to the immediately following paragraph, the Trustee may, if it shall be
unwilling to so act, or shall, if it is unable to so act or if it is prohibited
by law from making advances regarding delinquent mortgage loans or if the
Holders of Certificates evidencing, in aggregate, not less than 51% of the Trust
Fund so request in writing promptly appoint or petition a court of competent
jurisdiction to appoint, an established mortgage loan servicing institution
acceptable to each Rating Agency and having a net worth of not less than
$15,000,000, as the successor to the Master Servicer under this Agreement in the
assumption of all or any part of the responsibilities, duties or liabilities of
the Master Servicer under this Agreement.

         No appointment of a successor to the Master Servicer under this
Agreement shall be effective until the assumption by the successor of all of the
Master Servicer's responsibilities, duties and liabilities hereunder. In
connection with such appointment and assumption described herein, the Trustee
may make such arrangements for the compensation of such successor out of
payments on Loans as it and such successor shall agree; PROVIDED, HOWEVER, that
no such compensation shall be in excess of that permitted the Master Servicer as
such hereunder. The Depositor, the Trustee and such successor shall take such
action, consistent with this Agreement, as shall be necessary to effectuate any
such succession. Pending appointment of a successor to the Master Servicer under
this Agreement, the Trustee shall act in such capacity as hereinabove provided.
The transition costs and expenses incurred by the Trustee in connection with the
replacement of the Master Servicer shall be reimbursed out of the Trust.

         Section 7.3 NOTIFICATION TO CERTIFICATEHOLDERS.

                  (a) Upon any termination of the Master Servicer pursuant to
Section 7.1 above or any appointment of a successor to the Master Servicer
pursuant to Section 7.2 above, the Trustee shall give prompt written notice
thereof to the Certificateholders at their respective addresses appearing in the
Certificate Register.

                  (b) Not later than the later of 60 days after the occurrence
of any event, which constitutes or which, with notice or lapse of time or both,
would constitute a Master Servicer Event of Default or five days after a
Responsible Officer of the Trustee becomes aware of the occurrence of such an
event, the Trustee shall transmit by mail to all Holders of Certificates notice
of each such occurrence, unless such default or Master Servicer Event of Default
shall have been cured or waived.

         Section 7.4 WAIVER OF MASTER SERVICER EVENTS OF DEFAULT.

         The Holders evidencing, in aggregate, not less than 66 2/3% of the
aggregate Percentage Interests of all Classes of Certificates affected by any
default or Master Servicer Event of Default hereunder may waive such default or
Master Servicer Event of Default; PROVIDED, HOWEVER, that a default or Master
Servicer Event of Default under clause (i) or (vi) of Section 7.1 may be waived
only by all of the Holders of the Regular Interest Certificates. Upon any such
waiver of a default or Master Servicer Event of Default, such default or Master
Servicer Event of Default shall cease to exist and shall be deemed to have been
remedied for every purpose hereunder. No

                                      -92-
<PAGE>

such waiver shall extend to any subsequent or other default or Master Servicer
Event of Default or impair any right consequent thereon except to the extent
expressly so waived.

                                      -93-
<PAGE>

                                  ARTICLE VIII
             CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR

         Section 8.1 DUTIES OF TRUSTEE AND SECURITIES ADMINISTRATOR.

         The Trustee, prior to the occurrence of a Master Servicer Event of
Default and after the curing or waiver of all Master Servicer Events of Default
which may have occurred, and the Securities Administrator each undertake to
perform such duties and only such duties as are specifically set forth in this
Agreement as duties of the Trustee and the Securities Administrator,
respectively. During the continuance of a Master Servicer Event of Default, the
Trustee shall exercise such of the rights and powers vested in it by this
Agreement, and use the same degree of care and skill in its exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs. Any permissive right of the Trustee enumerated in
this Agreement shall not be construed as a duty.

         Each of the Trustee and the Securities Administrator, upon receipt of
all resolutions, certificates, statements, opinions, reports, documents, orders
or other instruments furnished to it, which are specifically required to be
furnished pursuant to any provision of this Agreement, shall examine them to
determine whether they conform on their face to the requirements of this
Agreement. If any such instrument is found not to conform on its face to the
requirements of this Agreement, the Trustee or the Securities Administrator, as
the case may be, shall take such action as it deems appropriate to have the
instrument corrected, and if the instrument is not corrected to its
satisfaction, the Securities Administrator shall provide notice to the Trustee
thereof and the Trustee shall provide notice to the Certificateholders.

         No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act or its own misconduct; PROVIDED, HOWEVER, that:

                  (i) Prior to the occurrence of a Master Servicer Event of
         Default, and after the curing or waiver of all such Master Servicer
         Events of Default which may have occurred with respect to the Trustee
         and at all times with respect to the Securities Administrator, the
         duties and obligations of the Trustee shall be determined solely by the
         express provisions of this Agreement, neither the Trustee nor the
         Securities Administrator shall be liable except for the performance of
         such duties and obligations as are specifically set forth in this
         Agreement, no implied covenants or obligations shall be read into this
         Agreement against the Trustee or the Securities Administrator and, in
         the absence of bad faith on the part of the Trustee or the Securities
         Administrator, respectively, the Trustee or the Securities
         Administrator, respectively, may conclusively rely, as to the truth of
         the statements and the correctness of the opinions expressed therein,
         upon any certificates or opinions furnished to the Trustee or the
         Securities Administrator, respectively, that conform to the
         requirements of this Agreement;

                  (ii) Neither the Trustee nor the Securities Administrator
         shall be liable for an error of judgment made in good faith by a
         Responsible Officer or Responsible Officers of the Trustee or an
         officer or officers of the Securities Administrator, respectively,

                                      -94-
<PAGE>

         unless it shall be proved that the Trustee or the Securities
         Administrator, respectively, was negligent in ascertaining the
         pertinent facts; and

                  (iii) Neither the Trustee nor the Securities Administrator
         shall be liable with respect to any action taken, suffered or omitted
         to be taken by it in good faith in accordance with the direction of the
         Holders of Certificates evidencing, in aggregate, not less than 25% of
         the Trust Fund relating to the time, method and place of conducting any
         proceeding for any remedy available to the Trustee or the Securities
         Administrator or exercising any trust or power conferred upon the
         Trustee or the Securities Administrator under this Agreement.

         Section 8.2 CERTAIN MATTERS AFFECTING TRUSTEE AND SECURITIES
ADMINISTRATOR.

                  (a) Except as otherwise provided in Section 8.1:

                  (i) The Trustee and the Securities Administrator may request
         and rely upon and shall be protected in acting or refraining from
         acting upon any resolution, Officers' Certificate, certificate of
         auditors or any other certificate, statement, instrument, opinion,
         report, notice, request, consent, order, appraisal, bond or other paper
         or document reasonably believed by it to be genuine and to have been
         signed or presented by the proper party or parties;

                  (ii) The Trustee and the Securities Administrator may consult
         with counsel of its selection and any advice of such counsel or any
         Opinion of Counsel shall be full and complete authorization and
         protection in respect of any action taken or suffered or omitted by it
         hereunder in good faith and in accordance with such advice or Opinion
         of Counsel;

                  (iii) Neither the Trustee nor the Securities Administrator
         shall be under any obligation to exercise any of the trusts or powers
         vested in it by this Agreement or to institute, conduct or defend any
         litigation hereunder or in relation hereto at the request, order or
         direction of any of the Certificateholders, pursuant to the provisions
         of this Agreement, unless such Certificateholders shall have offered to
         the Trustee or the Securities Administrator, as the case may be,
         reasonable security or indemnity satisfactory to it against the costs,
         expenses and liabilities which may be incurred therein or thereby;
         nothing contained herein shall, however, relieve the Trustee of the
         obligation, upon the occurrence of a Master Servicer Event of Default
         (which has not been cured or waived), to exercise such of the rights
         and powers vested in it by this Agreement, and to use the same degree
         of care and skill in their exercise as a prudent person would exercise
         or use under the circumstances in the conduct of such person's own
         affairs;

                  (iv) Neither the Trustee nor the Securities Administrator
         shall be liable for any action taken, suffered or omitted by it in good
         faith and believed by it to be authorized or within the discretion or
         rights or powers conferred upon it by this Agreement;

                  (v) Prior to the occurrence of a Master Servicer Event of
         Default hereunder and after the curing or waiver of all Master Servicer
         Events of Default which may have

                                      -95-
<PAGE>

         occurred with respect to the Trustee and at all times with respect to
         the Securities Administrator, neither the Trustee nor the Securities
         Administrator shall be bound to make any investigation into the facts
         or matters stated in any resolution, certificate, statement,
         instrument, opinion, report, notice, request, consent, order, approval,
         bond or other paper or document, unless requested in writing to do so
         by the Holders of Certificates evidencing, in aggregate, not less than
         25% of the Trust Fund; PROVIDED, HOWEVER, that if the payment within a
         reasonable time to the Trustee or the Securities Administrator of the
         costs, expenses or liabilities likely to be incurred by it in the
         making of such investigation is, in the opinion of the Trustee or the
         Securities Administrator, as applicable, not reasonably assured to the
         Trustee or the Securities Administrator by such Certificateholders, the
         Trustee or the Securities Administrator, as applicable, may require
         reasonable indemnity satisfactory to it against such expense, or
         liability from such Certificateholders as a condition to taking any
         such action;

                  (vi) The Trustee may execute any of the trusts or powers
         hereunder or perform any duties hereunder either directly or by or
         through agents or attorneys and the Trustee shall not be responsible
         for any misconduct or negligence on the part of any agent or attorney
         appointed with due care by it hereunder;

                  (vii) The Securities Administrator shall not be liable for any
         loss resulting from the investment of funds held in the Distribution
         Account at the direction of the Master Servicer pursuant to Section
         3.23(c);

                  (viii) Neither the Trustee nor the Securities Administrator
         shall be liable for any action taken, suffered, or omitted to be taken
         by it in good faith and reasonably believed by it to be authorized or
         within the discretion or rights or powers conferred upon it by this
         Agreement;

                  (ix) the Trustee shall not be deemed to have notice of any
         default or Master Servicer Event of Default unless a Responsible
         Officer of the Trustee has actual knowledge thereof or unless written
         notice of any event which is in fact such a default is received by the
         Trustee at the Corporate Trust Office of the Trustee, and such notice
         references the Certificates and this Agreement; and

                  (x) the rights, privileges, protections, immunities and
         benefits given to the Trustee, including, without limitation, its right
         to be indemnified, are extended to, and shall be enforceable by, each
         agent, custodian and other Person employed to act hereunder.

                  (b) All rights of action under this Agreement or under any of
the Certificates, enforceable by the Trustee, may be enforced by it without the
possession of any of the Certificates, or the production thereof at the trial or
other proceeding relating thereto, and any such suit, action or proceeding
instituted by the Trustee shall be brought in its name for the benefit of all
the Holders of such Certificates, subject to the provisions of this Agreement.

         Section 8.3  TRUSTEE AND SECURITIES ADMINISTRATOR NOT LIABLE FOR
CERTIFICATES OR LOANS.

                                      -96-
<PAGE>

         The recitals contained herein and in the Certificates (other than the
signature of the Securities Administrator, the authentication of the Securities
Administrator on the Certificates, the acknowledgments of the Trustee contained
in Article II and the representations and warranties of the Trustee in Section
8.12) shall be taken as the statements of the Depositor and neither the Trustee
nor the Securities Administrator assumes any responsibility for their
correctness. Neither the Trustee nor the Securities Administrator makes any
representations or warranties as to the validity or sufficiency of this
Agreement (other than as specifically set forth in Section 8.12) or of the
Certificates (other than the signature of the Securities Administrator and
authentication of the Securities Administrator on the Certificates) or of any
Loan or related document. The Trustee shall not be accountable for the use or
application by the Depositor of any of the Certificates or of the proceeds of
such Certificates, or for the use or application of any funds paid to the
Depositor or the Master Servicer in respect of the Loans or deposited in or
withdrawn from the Distribution Account.

         Section 8.4 TRUSTEE AND SECURITIES ADMINISTRATOR MAY OWN CERTIFICATES.

         Each of the Trustee and the Securities Administrator in its individual
capacity or any other capacity may become the owner or pledgee of Certificates
and may transact business with other interested parties and their Affiliates
with the same rights it would have if it were not Trustee or the Securities
Administrator.

         Section 8.5 FEES AND EXPENSES OF TRUSTEE AND SECURITIES ADMINISTRATOR.

         The fees of the Trustee and the Securities Administrator hereunder and
of Wells Fargo under the Custodial Agreement shall be paid in accordance with a
side letter agreement with the Master Servicer and at the sole expense of the
Master Servicer. In addition, the Trustee, the Securities Administrator, the
Custodian and any director, officer, employee or agent of the Trustee, the
Securities Administrator and the Custodian shall be indemnified by the Trust and
held harmless against any loss, liability or expense (including reasonable
attorney's fees and expenses) incurred by the Trustee or the Securities
Administrator in connection with any default administration to be performed by
the Trustee or the Securities Administrator pursuant to this Agreement or other
agreements related hereto and any claim or legal action or any pending or
threatened claim or legal action arising out of or in connection with the
acceptance or administration of its respective obligations and duties under this
Agreement, including other agreements related hereto, other than any loss,
liability or expense (i) for which the Trustee is indemnified by the Master
Servicer, (ii) that constitutes a specific liability of the Trustee or the
Securities Administrator pursuant to Section 10.1(g) or (iii) any loss,
liability or expense incurred by reason of willful misfeasance, bad faith or
gross negligence in the performance of duties hereunder by reason of reckless
disregard of obligations and duties hereunder. The Master Servicer agrees to
indemnify the Trustee, from, and hold the Trustee harmless against, any loss,
liability or expense (including reasonable attorney's fees and expenses)
incurred by the Trustee by reason of the Master Servicer's willful misfeasance,
bad faith or gross negligence in the performance of its duties under this
Agreement or by reason of the Master Servicer's reckless disregard of its
obligations and duties under this Agreement. Such indemnity shall survive the
termination or discharge of this Agreement and the resignation or removal of the
Trustee. Any payment hereunder made by the Master Servicer to the Trustee shall
be from the Master Servicer's own funds, without reimbursement from REMIC I
therefor.

                                      -97-
<PAGE>

         Section 8.6 ELIGIBILITY REQUIREMENTS FOR TRUSTEE AND SECURITIES
ADMINISTRATOR.

         The Trustee and the Securities Administrator shall at all times be a
corporation or an association (other than the Depositor, the Seller, the Master
Servicer or any Affiliate of the foregoing) organized and doing business under
the laws of any state or the United States of America, authorized under such
laws to exercise corporate trust powers, having a combined capital and surplus
of at least $50,000,000 (or a member of a bank holding company whose capital and
surplus is at least $50,000,000) and subject to supervision or examination by
federal or state authority. If such corporation or association publishes reports
of conditions at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section the combined capital and surplus of such corporation or association
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of conditions so published. In case at any time the Trustee or the
Securities Administrator, as applicable, shall cease to be eligible in
accordance with the provisions of this Section, the Trustee or the Securities
Administrator, as applicable, shall resign immediately in the manner and with
the effect specified in Section 8.7.

         Section 8.7 RESIGNATION AND REMOVAL OF TRUSTEE AND SECURITIES
ADMINISTRATOR.

         The Trustee and the Securities Administrator may at any time resign and
be discharged from the trust hereby created by giving written notice thereof to
the Depositor, to the Master Servicer, to the Securities Administrator (or the
Trustee, if the Securities Administrator resigns) and to the Certificateholders.
Upon receiving such notice of resignation, the Depositor shall promptly appoint
a successor trustee or successor securities administrator by written instrument,
in duplicate, which instrument shall be delivered to the resigning Trustee or
Securities Administrator, as applicable, and to the successor trustee or
successor securities administrator, as applicable. A copy of such instrument
shall be delivered to the Certificateholders, the Trustee, the Securities
Administrator and the Master Servicer by the Depositor. If no successor trustee
or successor securities administrator shall have been so appointed and have
accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Trustee or Securities Administrator, as the case may
be, may, at the expense of the Trust Fund, petition any court of competent
jurisdiction for the appointment of a successor trustee, successor securities
administrator, Trustee or Securities Administrator, as applicable.

         If at any time the Trustee or the Securities Administrator shall cease
to be eligible in accordance with the provisions of Section 8.6 and shall fail
to resign after written request therefor by the Depositor, or if at any time the
Trustee or the Securities Administrator shall become incapable of acting, or
shall be adjudged bankrupt or insolvent, or a receiver of the Trustee or the
Securities Administrator or of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or the Securities
Administrator or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Depositor may remove the Trustee or the
Securities Administrator, as applicable and appoint a successor trustee or
successor securities administrator, as applicable, by written instrument, in
duplicate, which instrument shall be delivered to the Trustee or the Securities
Administrator so removed and to the successor trustee or successor securities
administrator. A copy of such instrument shall be delivered to the
Certificateholders, the Trustee, the Securities Administrator and the Master
Servicer by the Depositor.

                                      -98-
<PAGE>

         The Holders of Certificates evidencing, in aggregate, not less than 51%
of the Trust Fund may at any time remove the Trustee or the Securities
Administrator and appoint a successor trustee or successor securities
administrator by written instrument or instruments, in triplicate, signed by
such Holders or their attorneys-in-fact duly authorized, one complete set of
which instruments shall be delivered to the Depositor, one complete set to the
Trustee or the Securities Administrator so removed and one complete set to the
successor so appointed. A copy of such instrument shall be delivered to the
Certificateholders, the Trustee (in the case of the removal of the Securities
Administrator), the Securities Administrator (in the case of the removal of the
Trustee) and the Master Servicer by the Depositor. All costs and expenses
incurred by the Trustee in connection with its removal without cause hereunder
shall be reimbursed to it by the Trust Fund.

         Any resignation or removal of the Trustee or the Securities
Administrator and appointment of a successor trustee or successor securities
administrator pursuant to any of the provisions of this Section shall not become
effective until acceptance of appointment by the successor trustee or successor
securities administrator, as applicable, as provided in Section 8.8.

         Notwithstanding anything to the contrary contained herein, the Master
Servicer and the Securities Administrator shall at all times be the same Person.

         Section 8.8 SUCCESSOR TRUSTEE OR SECURITIES ADMINISTRATOR.

         Any successor trustee or successor securities administrator appointed
as provided in Section 8.7 shall execute, acknowledge and deliver to the
Depositor and its predecessor trustee or predecessor securities administrator an
instrument accepting such appointment hereunder, and thereupon the resignation
or removal of the predecessor trustee or predecessor securities administrator
shall become effective and such successor trustee or successor securities
administrator without any further act, deed or conveyance, shall become fully
vested with all the rights, powers, duties and obligations of its predecessor
hereunder, with the like effect as if originally named as trustee or securities
administrator herein. The predecessor trustee or predecessor securities
administrator shall deliver to the successor trustee or successor securities
administrator all Loan Documents and related documents and statements to the
extent held by it hereunder, as well as all moneys, held by it hereunder, and
the Depositor and the predecessor trustee or predecessor securities
administrator shall execute and deliver such instruments and do such other
things as may reasonably be required for more fully and certainly vesting and
confirming in the successor trustee or successor securities administrator all
such rights, powers, duties and obligations.

         No successor trustee or successor securities administrator shall accept
appointment as provided in this Section unless at the time of such acceptance
such successor trustee or successor securities administrator shall be eligible
under the provisions of Section 8.6 and the appointment of such successor
trustee or successor securities administrator shall not result in a downgrading
of any Class of Certificates by any Rating Agency, as evidenced by a letter from
each Rating Agency.

         Upon acceptance of appointment by a successor trustee or successor
securities administrator as provided in this Section, the Depositor shall mail
notice of the succession of such trustee hereunder to all Holders of
Certificates at their addresses as shown in the Certificate

                                      -99-
<PAGE>

Register. If the Depositor fails to mail such notice within 10 days after
acceptance of appointment by the successor trustee or successor securities
administrator, the successor trustee or successor securities administrator shall
cause such notice to be mailed at the expense of the Depositor.

         Section 8.9 MERGER OR CONSOLIDATION OF TRUSTEE OR SECURITIES
ADMINISTRATOR.

         Any corporation or association into which the Trustee or the Securities
Administrator may be merged or converted or with which it may be consolidated or
any corporation or association resulting from any merger, conversion or
consolidation to which the Trustee or the Securities Administrator shall be a
party, or any corporation or association succeeding to the business of the
Trustee or the Securities Administrator shall be the successor of the Trustee or
the Securities Administrator hereunder, provided such corporation or association
shall be eligible under the provisions of Section 8.6, without the execution or
filing of any paper or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding.

         Section 8.10 APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE.

         Notwithstanding any other provisions hereof, at any time, for the
purpose of meeting any legal requirements of any jurisdiction in which any part
of REMIC I or property securing the same may at the time be located, the Trustee
shall have the power and shall execute and deliver all instruments to appoint
one or more Persons approved by the Trustee to act as co-trustee or co-trustees,
jointly with the Trustee, or separate trustee or separate trustees, of all or
any part of REMIC I, and to vest in such Person or Persons, in such capacity,
and for the benefit of the Holders of the Certificates, such title to REMIC I,
or any part thereof, and, subject to the other provisions of this Section 8.10,
such powers, duties, obligations, rights and trusts as the Trustee may consider
necessary or desirable. No co-trustee or separate trustee hereunder shall be
required to meet the terms of eligibility as a successor trustee under Section
8.6 hereunder and no notice to Holders of Certificates of the appointment of
co-trustee(s) or separate trustee(s) shall be required under Section 8.8 hereof.

         In the case of any appointment of a co-trustee or separate trustee
pursuant to this Section 8.10 all rights, powers, duties and obligations
conferred or imposed upon the Trustee shall be conferred or imposed upon and
exercised or performed by the Trustee and such separate trustee or co-trustee
jointly, except to the extent that under any law of any jurisdiction in which
any particular act or acts are to be performed by the Trustee (whether as
Trustee hereunder or as successor to a defaulting Master Servicer hereunder),
the Trustee shall be incompetent or unqualified to perform such act or acts, in
which event such rights, powers, duties and obligations (including the holding
of title to REMIC I or any portion thereof in any such jurisdiction) shall be
exercised and performed by such separate trustee or co-trustee at the direction
of the Trustee.

         Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article VIII. Each separate trustee and co-trustee, upon its acceptance
of the trust conferred, shall be vested with the estates or property specified
in its instrument of appointment, either jointly with the Trustee, or
separately, as may be provided

                                     -100-
<PAGE>

therein, subject to all the provisions of this Agreement, specifically including
every provision of this Agreement relating to the conduct of, affecting the
liability of, or affording protection to, the Trustee. Every such instrument
shall be filed with the Trustee.

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

         Section 8.11 APPOINTMENT OF OFFICE OR AGENCY.

         The Securities Administrator shall appoint an office or agency in the
City of Minneapolis located at Sixth and Marquette, Minneapolis, Minnesota
55479, where the Certificates may be surrendered for registration of transfer or
exchange, and presented for final distribution and where notices and demands to
or upon the Securities Administrator in respect of the Certificates and this
Agreement may be served.

         Section 8.12 REPRESENTATIONS AND WARRANTIES OF THE TRUSTEE.

         The Trustee hereby represents and warrants to the Master Servicer, the
Securities Administrator and the Depositor as applicable, as of the Closing
Date, that:

                  (i) It is a banking corporation duly organized, validly
         existing and in good standing under the laws of the State of New York.

                  (ii) The execution and delivery of this Agreement by it, and
         the performance and compliance with the terms of this Agreement by it,
         will not violate its articles of incorporation or bylaws or constitute
         a default (or an event which, with notice or lapse of time, or both,
         would constitute a default) under, or result in the breach of, any
         material agreement or other instrument to which it is a party or which
         is applicable to it or any of its assets.

                  (iii) It has the full power and authority to enter into and
         consummate all transactions contemplated by this Agreement, has duly
         authorized the execution, delivery and performance of this Agreement,
         and has duly executed and delivered this Agreement.

                  (iv) This Agreement, assuming due authorization, execution and
         delivery by the other parties hereto, constitutes a valid, legal and
         binding obligation of it, enforceable against it in accordance with the
         terms hereof, subject to (A) applicable bankruptcy, insolvency,
         receivership, reorganization, moratorium and other laws affecting the
         enforcement of creditors' rights generally, and (B) general principles
         of equity, regardless of whether such enforcement is considered in a
         proceeding in equity or at law.

                                     -101-
<PAGE>

                  (v) It is not in violation of, and its execution and delivery
         of this Agreement and its performance and compliance with the terms of
         this Agreement will not constitute a violation of, any law, any order
         or decree of any court or arbiter, or any order, regulation or demand
         of any federal, state or local governmental or regulatory authority,
         which violation, in its good faith and reasonable judgment, is likely
         to affect materially and adversely either the ability of it to perform
         its obligations under this Agreement or its financial condition.

                  (vi) No litigation is pending or, to the best of its
         knowledge, threatened against it, which would prohibit it from entering
         into this Agreement or, in its good faith reasonable judgment, is
         likely to materially and adversely affect either the ability of it to
         perform its obligations under this Agreement or its financial
         condition.

                                     -102-
<PAGE>

                                   ARTICLE IX
                                   TERMINATION

         Section 9.1 TERMINATION UPON PURCHASE OR LIQUIDATION OF ALL LOANS.

                  (a) Subject to Section 9.2, the respective obligations and
responsibilities under this Agreement of the Depositor, the Master Servicer, the
Securities Administrator and the Trustee (other than the obligations of the
Master Servicer to the Securities Administrator pursuant to Section 8.5 and of
the Master Servicer to pay Compensating Interest to the Securities Administrator
and the Securities Administrator to make payments in respect of REMIC I Regular
Interests or the Classes of Certificates as hereinafter set forth) shall
terminate upon payment to the Certificateholders and the deposit of all amounts
held by or on behalf of the Trustee and required hereunder to be so paid or
deposited on the Distribution Date coinciding with or following the earlier to
occur of (i) the purchase by the Terminator (as defined below) of all Loans and
each REO Property remaining in REMIC I and (ii) the final payment or other
liquidation (or any advance with respect thereto) of the last Loan or REO
Property remaining in REMIC I; PROVIDED, HOWEVER, that in no event shall the
trust created hereby continue beyond the expiration of 21 years from the death
of the last survivor of the descendants of Joseph P. Kennedy, the late
ambassador of the United States to the Court of St. James, living on the date
hereof. The purchase by the Terminator of all Loans and each REO Property
remaining in REMIC I shall be at a price (the "Termination Price") equal to the
sum of (i) the aggregate Purchase Price of all the Loans included in REMIC I,
plus the fair market value of each REO Property, if any, included in REMIC I,
such valuation to be conducted by an appraiser mutually agreed upon by the
Terminator and the Securities Administrator in their reasonable discretion plus
(ii) any amounts due the Servicers and the Master Servicer in respect of unpaid
Servicing Fees, Master Servicing Fees and outstanding Advances and Servicing
Advances.

                  (b) The Master Servicer shall have the right (the party
exercising such right, the "Terminator"), to purchase all of the Loans and each
REO Property remaining in REMIC I pursuant to clause (i) of the preceding
paragraph no later than the Determination Date in the month immediately
preceding the Distribution Date on which the Certificates will be retired;
PROVIDED, HOWEVER, that the Terminator may elect to purchase all of the Loans
and each REO Property remaining in REMIC I pursuant to clause (i) above only if
the aggregate Scheduled Principal Balance of the Loans and each REO Property
remaining in the Trust Fund at the time of such election is reduced to less than
10% of the aggregate Scheduled Principal Balance of the Loans as of the Cut-Off
Date.

                  (c) Notice of the liquidation of the Certificates shall be
given promptly by the Securities Administrator by letter to the
Certificateholders mailed (a) in the event such notice is given in connection
with the purchase of the Loans and each REO Property by the Terminator, not
earlier than the 15th day and not later than the 25th day of the month next
preceding the month of the final distribution on the Certificates or (b)
otherwise during the month of such final distribution on or before the
Determination Date in such month, in each case specifying (i) the Distribution
Date upon which the Trust Fund will terminate and the final payment in respect
of REMIC I Regular Interests or the Certificates will be made upon presentation
and surrender of

                                     -103-
<PAGE>

the related Certificates at the office of the Securities Administrator therein
designated, (ii) the amount of any such final payment, (iii) that no interest
shall accrue in respect of REMIC I Regular Interests or Certificates from and
after the Interest Accrual Period relating to the final Distribution Date
therefor and (iv) that the Record Date otherwise applicable to such Distribution
Date is not applicable, payments being made only upon presentation and surrender
of the Certificates at the office of the Securities Administrator. In the event
such notice is given in connection with the purchase of all of the Loans and
each REO Property remaining in the REMIC I by the Terminator, the Terminator
shall deliver to the Securities Administrator for deposit in the Distribution
Account not later than the last Business Day of the month next preceding the
month of the final distribution on the Certificates an amount in immediately
available funds equal to the above-described Termination Price. The Securities
Administrator shall remit (a) to the Master Servicer from such funds deposited
in the Distribution Account (i) any amounts which the Master Servicer notifies
it in writing that the Master Servicer would be permitted to withdraw and retain
from the Distribution Account pursuant to Section 3.24 and (ii) any other
amounts otherwise payable by the Securities Administrator to the Master Servicer
from amounts on deposit in the Distribution Account pursuant to the terms of
this Agreement and notified by the Master Servicer in writing and (b) to the
Servicers, any amounts reimbursable to the Servicers pursuant to the Servicing
Agreements, in each case prior to making any final distributions pursuant to
Section 9.1(d) below. Upon certification to the Trustee and the Securities
Administrator by a Servicing Officer of the making of such final deposit, the
Trustee shall promptly release to the Terminator the Mortgage Files for the
remaining Loans, and the Trustee shall execute all assignments, endorsements and
other instruments necessary to effectuate such transfer in each case without
recourse, representation or warranty.

                  (d) Upon presentation of the Certificates by the
Certificateholders on the final Distribution Date, the Securities Administrator
shall distribute to each Certificateholder so presenting and surrendering its
Certificates the amount otherwise distributable on such Distribution Date in
accordance with Section 4.1 in respect of the Certificates so presented and
surrendered. Any funds not distributed to any Holder or Holders of Certificates
being retired on such Distribution Date because of the failure of such Holder or
Holders to tender their Certificates shall, on such date, be set aside and held
in trust and credited to the account of the appropriate non-tendering Holder or
Holders. If any Certificates as to which notice has been given pursuant to this
Section 9.1 shall not have been surrendered for cancellation within six months
after the time specified in such notice, the Securities Administrator shall mail
a second notice to the remaining non-tendering Certificateholders to surrender
their Certificates for cancellation in order to receive the final distribution
with respect thereto. If within one year after the second notice all such
Certificates shall not have been surrendered for cancellation, the Securities
Administrator shall, directly or through an agent, mail a final notice to the
remaining non-tendering Certificateholders concerning surrender of their
Certificates. The costs and expenses of maintaining the funds in trust and of
contacting such Certificateholders shall be paid out of the assets remaining in
the trust funds. If within one year after the final notice any such Certificates
shall not have been surrendered for cancellation, the Securities Administrator
shall pay to the Depositor all such amounts, and all rights of non-tendering
Certificateholders in or to such amounts shall thereupon cease. No interest
shall accrue or be payable to any Certificateholder on any amount held in trust
by the Securities Administrator as a result of such Certificateholder's failure
to surrender its Certificate(s) for final payment thereof in accordance with
this Section 9.1. Any such amounts held in trust by the Securities Administrator
shall be

                                     -104-
<PAGE>

held in an Eligible Account and the Securities Administrator may direct any
depository institution maintaining such account to invest the funds in one or
more Eligible Investments. All income and gain realized from the investment of
funds deposited in such accounts held in trust by the Securities Administrator
shall be for the benefit of the Securities Administrator; PROVIDED, HOWEVER,
that the Securities Administrator shall deposit in such account the amount of
any loss of principal incurred in respect of any such Eligible Investment made
with funds in such accounts immediately upon the realization of such loss.

                  Immediately following the deposit of funds in trust hereunder
in respect of the Certificates, the Trust Fund shall terminate.

         Section 9.2 ADDITIONAL TERMINATION REQUIREMENTS.

                  (a) In the event that the Terminator purchases all the Loans
and each REO Property or the final payment on or other liquidation of the last
Loan or REO Property remaining in REMIC I pursuant to Section 9.1, the Trust
Fund shall be terminated in accordance with the following additional
requirements:

                  (i) The Securities Administrator shall specify the first day
         in the 90-day liquidation period in a statement attached to each
         REMIC's final Tax Return pursuant to Treasury regulation Section
         1.860F-1 and shall satisfy all requirements of a qualified liquidation
         under Section 860F of the Code and any regulations thereunder, as
         evidenced by an Opinion of Counsel obtained by and at the expense of
         the Terminator;

                  (ii) During such 90-day liquidation period and, at or prior to
         the time of making of the final payment on the Certificates, the
         Securities Administrator shall sell all of the assets of REMIC I to the
         Terminator for cash; and

                  (iii) At the time of the making of the final payment on the
         Certificates, the Securities Administrator shall distribute or credit,
         or cause to be distributed or credited, to the Holders of the Residual
         Certificates all cash on hand in the Trust Fund (other than cash
         retained to meet claims), and the Trust Fund shall terminate at that
         time.

                  (b) At the expense of the requesting Terminator (or, if the
Trust Fund is being terminated as a result of the occurrence of the event
described in clause (ii) of the first paragraph of Section 9.1, at the expense
of the Trust Fund), the Terminator shall prepare or cause to be prepared the
documentation required in connection with the adoption of a plan of liquidation
of each REMIC pursuant to this Section 9.2.

                  (c) By their acceptance of Certificates, the Holders thereof
hereby agree to authorize the Securities Administrator to specify the 90-day
liquidation period for each REMIC, which authorization shall be binding upon all
successor Certificateholders.

                                     -105-
<PAGE>

                                   ARTICLE X
                                REMIC PROVISIONS

         Section 10.1 REMIC ADMINISTRATION.

                  (a) The Trustee shall elect to treat each REMIC under the Code
and, if necessary, under applicable state law and as instructed by the
Securities Administrator. Each such election shall be made by the Securities
Administrator on Form 1066 or other appropriate federal tax or information
return or any appropriate state return for the taxable year ending on the last
day of the calendar year in which the Certificates are issued. For the purposes
of the REMIC election in respect of REMIC I, the REMIC I Regular Interests shall
be designated as the Regular Interests in REMIC I and the Class R-1 component
shall be designated as the Residual Interests in REMIC I. The REMIC II Regular
Interest shall be designated as the Regular Interests in REMIC II and the Class
R-2 component shall be designated as the Residual Interests in REMIC II. The
Certificates shall be designated as the Regular Interests in REMIC III and the
Class R-3 component shall be designated as the Residual Interests in REMIC III.
The Trustee shall not permit the creation of any "interests" in each Trust REMIC
(within the meaning of Section 860G of the Code) other than the REMIC I Regular
Interests, REMIC II Regular Interests and the interests represented by the
Certificates.

                  (b) The Closing Date is hereby designated as the "Startup Day"
of each Trust REMIC within the meaning of Section 860G(a)(9) of the Code.

                  (c) The Securities Administrator shall be reimbursed for any
and all expenses relating to any tax audit of the Trust Fund (including, but not
limited to, any professional fees or any administrative or judicial proceedings
with respect to each REMIC that involve the Internal Revenue Service or state
tax authorities), including the expense of obtaining any tax related Opinion of
Counsel except as specified herein. The Securities Administrator, as agent for
each REMIC's tax matters person shall (i) act on behalf of the Trust Fund in
relation to any tax matter or controversy involving any REMIC and (ii) represent
the Trust Fund in any administrative or judicial proceeding relating to an
examination or audit by any governmental taxing authority with respect thereto.
The holder of the largest Percentage Interest of each class of Residual
Certificates shall be designated, in the manner provided under Treasury
regulations section 1.860F-4(d) and Treasury regulations section
301.6231(a)(7)-1, as the tax matters person of the related REMIC created
hereunder. By their acceptance thereof, the holder of the largest Percentage
Interest of the Residual Certificates hereby agrees to irrevocably appoint the
Securities Administrator or an Affiliate as its agent to perform all of the
duties of the tax matters person for the Trust Fund.

                  (d) The Securities Administrator shall prepare and file and
the Trustee shall sign all of the Tax Returns in respect of each REMIC created
hereunder. The expenses of preparing and filing such returns shall be borne by
the Securities Administrator without any right of reimbursement therefor.

                  (e) The Securities Administrator shall perform on behalf of
each REMIC all reporting and other tax compliance duties that are the
responsibility of such REMIC under the Code, the REMIC Provisions or other
compliance guidance issued by the Internal Revenue

                                     -106-
<PAGE>

Service or any state or local taxing authority. Among its other duties, as
required by the Code, the REMIC Provisions or other such compliance guidance,
the Securities Administrator shall provide (i) to any Transferor of a Residual
Certificate such information as is necessary for the application of any tax
relating to the transfer of a Residual Certificate to any Person who is not a
Permitted Transferee upon receipt of additional reasonable compensation, (ii) to
the Certificateholders such information or reports as are required by the Code
or the REMIC Provisions including reports relating to interest, original issue
discount and market discount or premium (using the Prepayment Assumption as
required) and (iii) to the Internal Revenue Service the name, title, address and
telephone number of the person who shall serve as the representative of each
REMIC. The Depositor shall provide or cause to be provided to the Securities
Administrator, within ten (10) days after the Closing Date, all information or
data that the Securities Administrator reasonably determines to be relevant for
tax purposes as to the valuations and issue prices of the Certificates,
including, without limitation, the price, yield, prepayment assumption and
projected cash flow of the Certificates.

                  (f) To the extent in the control of the Trustee or the
Securities Administrator, each such Person (i) shall take such action and shall
cause each REMIC created hereunder to take such action as shall be necessary to
create or maintain the status thereof as a REMIC under the REMIC Provisions,
(ii) shall not take any action, cause the Fund to take any action or fail to
take (or fail to cause to be taken) any action that, under the REMIC Provisions,
if taken or not taken, as the case may be, could (A) endanger the status of each
Trust REMIC as a REMIC or (B) result in the imposition of a tax upon the Trust
Fund (including but not limited to the tax on prohibited transactions as defined
in Section 860F(a)(2) of the Code and the tax on contributions to a REMIC set
forth in Section 860G(d) of the Code) (either such event, an "Adverse REMIC
Event") unless such action or inaction is permitted under this Agreement or the
Trustee and the Securities Administrator have received an Opinion of Counsel,
addressed to them (at the expense of the party seeking to take such action but
in no event at the expense of the Trustee or the Securities Administrator) to
the effect that the contemplated action will not, with respect to any REMIC,
endanger such status or result in the imposition of such a tax, nor (iii) shall
the Securities Administrator take or fail to take any action (whether or not
authorized hereunder) as to which the Trustee has advised it in writing that it
has received an Opinion of Counsel to the effect that an Adverse REMIC Event
could occur with respect to such action; provided that the Securities
Administrator may conclusively rely on such Opinion of Counsel and shall incur
no liability for its action or failure to act in accordance with such Opinion of
Counsel. In addition, prior to taking any action with respect to any REMIC or
the respective assets of each, or causing any REMIC to take any action, which is
not contemplated under the terms of this Agreement, the Securities Administrator
shall consult with the Trustee or its designee, in writing, with respect to
whether such action could cause an Adverse REMIC Event to occur with respect to
any REMIC, and the Securities Administrator shall not take any such action or
cause any REMIC to take any such action as to which the Trustee has advised it
in writing that an Adverse REMIC Event could occur. The Trustee may consult with
counsel to make such written advice, and the cost of same shall be borne by the
party seeking to take the action not permitted by this Agreement, but in no
event shall such cost be an expense of the Trustee.

                  (g) In the event that any tax is imposed on "prohibited
transactions" of any REMIC created hereunder as defined in Section 860F(a)(2) of
the Code, on the "net income from foreclosure property" of such REMIC as defined
in Section 860G(c) of the Code, on any

                                     -107-
<PAGE>

contributions to any such REMIC after the Startup Day therefor pursuant to
Section 860G(d) of the Code, or any other tax is imposed by the Code or any
applicable provisions of state or local tax laws, such tax shall be charged (i)
to the Trustee pursuant to Section 10.3 hereof, if such tax arises out of or
results from a breach by the Trustee of any of its obligations under this
Article X, (ii) to the Securities Administrator pursuant to Section 10.3 hereof,
if such tax arises out of or results from a breach by the Securities
Administrator of any of its obligations under this Article X, (iii) to the
Master Servicer pursuant to Section 10.3 hereof, if such tax arises out of or
results from a breach by the Master Servicer of any of its obligations under
Article III or under this Article X, or (iv) against amounts on deposit in the
Distribution Account and shall be paid by withdrawal therefrom.

                  (h) The Trustee and the Securities Administrator shall, for
federal income tax purposes, maintain books and records with respect to each
REMIC on a calendar year and on an accrual basis.

                  (i) Following the Startup Day, the Trustee shall not accept
any contributions of assets to any REMIC other than in connection with any
Substitute Loan delivered in accordance with Section 2.3 unless it shall have
received an Opinion of Counsel addressed to it to the effect that the inclusion
of such assets in the Trust Fund will not cause the related REMIC to fail to
qualify as a REMIC at any time that any Certificates are outstanding or subject
such REMIC to any tax under the REMIC Provisions or other applicable provisions
of federal, state and local law or ordinances.

                  (j) Neither the Trustee nor the Securities Administrator shall
knowingly enter into any arrangement by which any Trust REMIC will receive a fee
or other compensation for services nor permit either REMIC to receive any income
from assets other than "qualified mortgages" as defined in Section 860G(a)(3) of
the Code or "permitted investments" as defined in Section 860G(a)(5) of the
Code.

                  (k) The Securities Administrator shall apply for an employer
identification number with the Internal Revenue Service via a Form SS-4 or other
comparable method for each REMIC. In connection with the foregoing, the
Securities Administrator shall provide the name and address of the person who
can be contacted to obtain information required to be reported to the holders of
Regular Interests in each REMIC as required by IRS Form 8811.

         Section 10.2 PROHIBITED TRANSACTIONS AND ACTIVITIES.

         None of the Depositor, the Securities Administrator, the Master
Servicer or the Trustee shall sell, dispose of or substitute for any of the
Loans (except in connection with (i) the foreclosure of a Loan, including but
not limited to, the acquisition or sale of a Mortgaged Property acquired by deed
in lieu of foreclosure, (ii) the bankruptcy of REMIC I, (iii) the termination of
REMIC I pursuant to Article IX of this Agreement, (iv) a substitution pursuant
to Article II of this Agreement or (v) a purchase of Loans pursuant to Article
II of this Agreement), nor acquire any assets for any REMIC (other than REO
Property acquired in respect of a defaulted Loan), nor sell or dispose of any
investments in the Distribution Account for gain, nor accept any contributions
to any REMIC after the Closing Date (other than a Substitute Loan delivered in
accordance with Section 2.3), unless it has received an Opinion of Counsel,
addressed to the Trustee and the Trustee (at the expense of the party seeking to
cause such sale,

                                     -108-
<PAGE>

disposition, substitution, acquisition or contribution but in no event at the
expense of the Trustee) that such sale, disposition, substitution, acquisition
or contribution will not (a) affect adversely the status of any REMIC as a REMIC
or (b) cause any REMIC to be subject to a tax on "prohibited transactions" or
"contributions" pursuant to the REMIC Provisions.

         Section 10.3 INDEMNIFICATION.

                  (a) The Trustee agrees to be liable for any taxes and costs
incurred by the Trust Fund, the Depositor, the Securities Administrator or the
Master Servicer including, without limitation, any reasonable attorneys fees
imposed on or incurred by the Trust Fund, the Depositor, the Securities
Administrator or the Master Servicer as a result of the Trustee's failure to
perform its covenants set forth in this Article X in accordance with the
standard of care of the Trustee set forth in this Agreement.

                  (b) The Master Servicer agrees to indemnify the Trust Fund,
the Depositor and the Trustee for any taxes and costs including, without
limitation, any reasonable attorneys' fees imposed on or incurred by the Trust
Fund, the Depositor or the Trustee, as a result of the Master Servicer's failure
to perform its covenants set forth in Article III in accordance with the
standard of care of the Master Servicer set forth in this Agreement.

                  (c) The Securities Administrator agrees to be liable for any
taxes and costs incurred by the Trust Fund, the Depositor or the Trustee
including, without limitation, any reasonable attorneys fees imposed on or
incurred by the Trust Fund, the Depositor or the Trustee as a result of the
Securities Administrator's failure to perform its covenants set forth in this
Article X in accordance with the standard of care of the Securities
Administrator set forth in this Agreement.

                                     -109-
<PAGE>

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

         Section 11.1 AMENDMENT. This Agreement may be amended from time to time
by the Depositor, the Master Servicer, the Securities Administrator and the
Trustee, without the consent of any of the Certificateholders, (a) to cure any
ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein, or to make any other provisions
with respect to matters or questions arising under this Agreement, (b) to
modify, eliminate or add to any provisions to such extent as shall be necessary
to maintain the qualification of the Trust Fund as three REMICs at all times
that any Class A Certificates or Class M Certificates, Class CE Certificates or
Class P Certificates are outstanding, provided, that such action shall not, as
evidenced by an Opinion of Counsel addressed to the Trustee and delivered to the
Trustee, adversely affect in any material respect the interests of any
Certificateholder. No amendment shall be deemed to adversely affect in any
material respect the interests of any Certificateholder who shall have consented
thereto, and no Opinion of Counsel shall be required to address the effect of
any such amendment on any such consenting Certificateholder.

         This Agreement may also be amended from time to time by the Depositor,
the Master Servicer, the Securities Administrator and the Trustee with the
consent of the Holders of Certificates evidencing, in aggregate, not less than
66-2/3% of the Trust Fund for the purpose of adding any provisions or changing
in any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Holders of Certificates; provided,
however, that no such amendment shall (a) reduce in any manner the amount of, or
delay the timing of, payments received on Loans which are required to be
distributed in respect of any Certificate without the consent of the Holder of
such Certificate; (b) adversely affect in any material respect the interest of
the Holders of the Class A Certificates in a manner other than as described in
(a) above without the consent of the Holders of Class A Certificates aggregating
not less than 66-2/3% of the aggregate Percentage Interest evidenced by all
Class A Certificates; (c) adversely affect in any material respect the interest
of the Holders of the Class M Certificates, Class CE Certificates and Class P
Certificates in a manner other than as described in clause (a) above without the
consent of the Holders of Class M Certificates, Class CE Certificates and Class
P Certificates aggregating not less than 66-2/3% of the aggregate Percentage
Interest evidenced by all such Certificates; (d) adversely affect in any
material respect the interest of the Class R Certificateholder without the
consent of the Holder of the Class R Certificate; (e) change in any material
respect the rights and obligations of the Master Servicer or successor Master
Servicer under this Agreement without the prior written consent of such party;
or (f) reduce the aforesaid percentage of the Certificates the Holders of which
are required to consent to any such amendments without the consent of the
Holders of all Certificates then outstanding; provided, that for the purposes of
this Agreement, the Holder of the Class R Certificate shall have no right to
vote at all times that any Class A Certificates, Class M Certificates, Class CE
Certificates or Class P Certificates are outstanding if such amendment relates
to the modification, elimination or addition of any provision necessary to
maintain the qualification of the Trust Fund as three REMICs. Without limiting
the generality of the foregoing, any amendment to this Agreement required in
connection with the compliance with or the clarification of any reporting
obligations

                                     -110-
<PAGE>

described in Section 3.18 hereof shall not require the consent of any
Certificateholder or any Opinion of Counsel or Rating Agency confirmation.

         Notwithstanding any contrary provision of this Agreement, the Trustee
shall not consent to any amendment to this Agreement unless it shall have first
received an Opinion of Counsel addressed to it to the effect that such amendment
will not cause either REMIC I, REMIC II or REMIC III of the Trust Fund to fail
to qualify as a REMIC at any time that REMIC I Regular Interests, REMIC II
Regular Interests or Regular Interest Certificates are outstanding.

         As soon as practicable after the execution of any such amendment, the
Trustee shall furnish written notification of the substance of such amendment to
each Certificateholder and Rating Agency.

         It shall not be necessary for the consent of the Certificateholders
under this Section 11.1 to approve the particular form of any proposed
amendment, but it shall be sufficient if such consent shall approve the
substance thereof. The manner of obtaining such consents and of evidencing the
authorization of the execution thereof by Certificateholders shall be subject to
such reasonable regulations as the Trustee may prescribe.

         Prior to the execution of any amendment to this Agreement, the Trustee
shall be entitled to receive and rely upon an Opinion of Counsel addressed to it
stating that the execution of such amendment is authorized or permitted by this
Agreement. The Trustee may, but shall not be obligated to, enter into any such
amendment which affects the Trustee's own rights, duties or immunities under
this Agreement.

         Section 11.2 RECORDATION OF AGREEMENT; COUNTERPARTS. To the extent
permitted by applicable law, this Agreement (or an abstract hereof, if
acceptable by the applicable recording office) is subject to recordation in all
appropriate public offices for real property records in all the counties or
other comparable jurisdictions in which any or all of the properties subject to
the Mortgages are situated, and in any other appropriate public recording office
or elsewhere, such recordation to be effected by the Depositor at the expense of
the Certificateholders, but only after the Depositor has delivered to the
Trustee an Opinion of Counsel to the effect that such recordation materially and
beneficially affects the interests of the Certificateholders.

         For the purpose of facilitating the recordation of this Agreement as
herein provided and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be deemed to be an original, and such counterparts shall constitute but one and
the same instrument.

         Section 11.3 LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS. The death or
incapacity of any Certificateholder shall not operate to terminate this
Agreement or the Trust Fund, nor entitle such Certificateholder's legal
representatives or heirs to claim an accounting or take any action or proceeding
in any court for a partition or winding up of the Trust Fund, nor otherwise
affect the rights, obligations and liabilities of the parties hereto or any of
them.

         Except as otherwise expressly provided herein no Certificateholder,
solely by virtue of its status as Certificateholder, shall have any right to
vote or in any manner otherwise control the operation and management of the
Trust Fund, or the obligations of the parties hereto, nor shall

                                     -111-
<PAGE>

anything herein set forth, or contained in the terms of the Certificates, be
construed so as to constitute the Certificateholders from time to time as
partners or members of an association, nor shall any Certificateholder be under
any liability to any third person by reason of any action taken by the parties
to this Agreement pursuant to any provision hereof.

         No Certificateholder, solely by virtue of its status as
Certificateholder, shall have any right by virtue or by availing of any
provision of this Agreement to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Agreement, unless such
holder previously shall have given to the Trustee a written notice of default
and of the continuance thereof, as hereinbefore provided, and unless all of the
Holders of Certificates evidencing, in aggregate, not less than 25% of the Trust
Fund shall have made written request upon the Trustee to institute such action,
suit or proceeding in its own name as Trustee hereunder and shall have offered
to the Trustee such reasonable indemnity as it may require against the costs,
expenses and liabilities to be incurred therein or thereby, and the Trustee, for
60 days after its receipt of such notice, request and offer of indemnity, shall
have neglected or refused to institute any such action, suit or proceeding; it
being understood and intended, and being expressly covenanted by each
Certificateholder with every other Certificateholder and the Trustee, that no
one or more holders of Certificates shall have any right in any manner whatever
by virtue or by availing of any provision of this Agreement to affect, disturb
or prejudice the rights of the Holders of any other of such Certificates, or to
obtain or seek to obtain priority over or preference to any other such Holder,
or to enforce any right under this Agreement, except in the manner herein
provided and for the benefit of all Certificateholders. For the protection and
enforcement of the provisions of this Section 11.3, each and every
Certificateholder and the Trustee shall be entitled to such relief as can be
given either at law or in equity.

         Section 11.4 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO CONFLICTS
OF LAWS PRINCIPLES OTHER THAN 5-1401 OF THE GENERAL OBLIGATIONS LAW), AND THE
OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

         Section 11.5 NOTICES. All demands, notices and communications hereunder
shall be in writing and shall be deemed to have been duly given if personally
delivered at or mailed by certified or registered mail, return receipt requested
(a) in the case of the Depositor, to 60 Wall Street, New York, New York 10005,
Attention: Deutsche Alt-A Securities, Inc., Alternative Loan Trust, Series
2003-2XS, (telecopy number: (212) 250-2500, or such other address or telecopy
number as may hereafter be furnished to the Master Servicer and the Trustee in
writing by the Depositor, (b) in the case of the Master Servicer and the
Securities Administrator, P.O. Box 98, Columbia, Maryland 21046 and for
overnight delivery to 9062 Old Annapolis Road, Columbia, Maryland 21045,
Attention: Deutsche Alt-A Securities, Inc., 2003-2XS (telecopy number: (410)
715-2380), or such other address or telecopy number as may hereafter be
furnished to the Trustee and the Depositor in writing by the Master Servicer or
the Securities Administrator, and (c) in the case of the Trustee, at the
Corporate Trust Office or such other address or telecopy number as the Trustee
may hereafter be furnish to the Master Servicer and the Depositor in writing by
the Trustee. Any notice required or permitted to be given to a Certificateholder
shall be given by first class mail, postage prepaid, at the address of such
Holder

                                     -112-
<PAGE>

as shown in the Certificate Register. Any notice so mailed within the time
prescribed in this Agreement shall be conclusively presumed to have been duly
given when mailed, whether or not the Certificateholder receives such notice. A
copy of any notice required to be telecopied hereunder also shall be mailed to
the appropriate party in the manner set forth above.

         Section 11.6 Severability of Provisions.

         If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

         Section 11.7 NOTICE TO RATING AGENCIES.

         The Trustee shall use its best efforts promptly to provide notice to
the Rating Agencies with respect to each of the following of which it has actual
knowledge:

                  1.       Any material change or amendment to this Agreement;

                  2.       The occurrence of any Master Servicer Event of
                           Default that has not been cured or waived;

                  3.       The resignation or termination of the Master Servicer
                           or the Trustee;

                  4.       The repurchase or substitution of Loans pursuant to
                           or as contemplated by Section 2.3;

                  5.       The final payment to the Holders of any Class of
                           Certificates;

                  6.       Any change in the location of the Distribution
                           Account; and

                  7.       Any event that would result in the inability of the
                           Trustee to make advances regarding delinquent Loans
                           pursuant to Section 7.2.

                  The Master Servicer shall make available to each Rating Agency
copies of the following:

                  1.       Each annual statement as to compliance described in
                           Section 3.16; and

                  2.       Each annual independent public accountants' servicing
                           report described in Section 3.17.

                  Any such notice pursuant to this Section 11.7 shall be in
writing and shall be deemed to have been duly given if personally delivered at
or mailed by first class mail, postage prepaid, or by express delivery service
to Standard & Poor's, a division of The McGraw-Hill Companies, Inc., 55 Water
Street, New York, New York 10041 and to Moody's Investors Service, Inc., 99
Church Street, New York, New York 10007 or such other addresses as the Rating
Agencies may designate in writing to the parties hereto.

                                     -113-
<PAGE>

         Section 11.8 ARTICLE AND SECTION REFERENCES.

         All article and section references used in this Agreement, unless
otherwise provided, are to articles and sections in this Agreement.

         Section 11.9 GRANT OF SECURITY INTEREST.

         It is the express intent of the parties hereto that the conveyance of
the Loans by the Depositor to the Trustee, on behalf of the Trust and for the
benefit of the Certificateholders, be, and be construed as, a sale of the Loans
by the Depositor and not a pledge of the Loans to secure a debt or other
obligation of the Depositor. However, in the event that, notwithstanding the
aforementioned intent of the parties, the Loans are held to be property of the
Depositor, then, (a) it is the express intent of the parties that such
conveyance be deemed a pledge of the Loans by the Depositor to the Trustee, on
behalf of the Trust and for the benefit of the Certificateholders, to secure a
debt or other obligation of the Depositor and (b)(1) this Agreement shall also
be deemed to be a security agreement within the meaning of Articles 8 and 9 of
the Uniform Commercial Code as in effect from time to time in the State of New
York; (2) the conveyance provided for in Section 2.1 hereof shall be deemed to
be a grant by the Depositor to the Trustee, on behalf of the Trust and for the
benefit of the Certificateholders, of a security interest in all of the
Depositor's right, title and interest in and to the Loans and all amounts
payable to the holders of the Loans in accordance with the terms thereof and all
proceeds of the conversion, voluntary or involuntary, of the foregoing into
cash, instruments, securities or other property, including without limitation
all amounts, other than investment earnings, from time to time held or invested
in the Distribution Account, whether in the form of cash, instruments,
securities or other property; (3) the obligations secured by such security
agreement shall be deemed to be all of the Depositor's obligations under this
Agreement, including the obligation to provide to the Certificateholders the
benefits of this Agreement relating to the Loans and the Trust Fund; and (4)
notifications to persons holding such property, and acknowledgments, receipts or
confirmations from persons holding such property, shall be deemed notifications
to, or acknowledgments, receipts or confirmations from, financial
intermediaries, bailees or agents (as applicable) of the Trustee for the purpose
of perfecting such security interest under applicable law. Accordingly, the
Depositor hereby grants to the Trustee, on behalf of the Trust and for the
benefit of the Certificateholders, a security interest in the Loans and all
other property described in clause (2) of the preceding sentence, for the
purpose of securing to the Trustee the performance by the Depositor of the
obligations described in clause (3) of the preceding sentence. Notwithstanding
the foregoing, the parties hereto intend the conveyance pursuant to Section 2.1
to be a true, absolute and unconditional sale of the Loans and assets
constituting the Trust Fund by the Depositor to the Trustee, on behalf of the
Trust and for the benefit of the Certificateholders.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

         IN WITNESS WHEREOF, the Depositor, the Master Servicer, the Securities
Administrator and the Trustee have caused their names to be signed hereto by
their respective officers thereunto duly authorized, all as of the day and year
first above written.

                                 DEUTSCHE ALT-A SECURITIES, INC.,
                                 as Depositor

                                 By:   /s/ Steve Katz
                                    --------------------------------------------
                                 Name: Steve Katz
                                 Its:  Vice President

                                 By:   /s/ Eric Londa
                                    --------------------------------------------
                                 Name: Eric Londa
                                 Its:  Vice President

                                 WELLS FARGO BANK MINNESOTA,
                                 NATIONAL ASSOCIATION
                                 as Master Servicer and Securities Administrator

                                 By:   /s/ Peter A Gobell
                                    --------------------------------------------
                                 Name: Peter A Gobell
                                 Its:  Vice President

                                 HSBC Bank USA,  not in its individual capacity
                                 but solely as Trustee

                                 By:   /s/ Richard Wu
                                    --------------------------------------------
                                 Name: Richard Wu
                                 Its:  Vice President

<PAGE>

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

         On the ___ day of September 2003, before me, a notary public in and for
said State, personally appeared _____________________ known to me to be a
_____________________ of Deutsche Alt-A Securities, Inc., one of the
corporations that executed the within instrument, and also known to me to be the
person who executed it on behalf of said corporation, and acknowledged to me
that such corporation executed the within instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.

                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF                  )
                          ) ss.:
COUNTY OF                 )

                  On the ___ day of September 2003, before me, a notary public
in and for said State, personally appeared _____________________ known to me to
be a _____________________ of Deutsche Alt-A Securities, Inc ., one of the
corporations that executed the within instrument, and also known to me to be the
person who executed it on behalf of said corporation, and acknowledged to me
that such corporation executed the within instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF                  )
                          ) ss.:
COUNTY OF                 )

                  On the __ day of September 2003, before me, a notary public in
and for said State, personally appeared ___________________________ known to me
to be a ____________________ of Wells Fargo Bank Minnesota, National
Association, one of the corporations that executed the within instrument, and
also known to me to be the person who executed it on behalf of said corporation,
and acknowledged to me that such corporation executed the within instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF                   )
                           ) ss.:
COUNTY OF                  )

                  On the ___ day of September 2003, before me, a notary public
in and for said State, personally appeared _______________ known to me to be a
_______________ of HSBC Bank USA, one of the corporations that executed the
within instrument, and also known to me to be the person who executed it on
behalf of said corporation, and acknowledged to me that such corporation
executed the within instrument.

                  IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                                Notary Public

[Notarial Seal]

<PAGE>

                                   EXHIBIT A-1

                 FORM OF CLASS A-[1][2][3][4][5][6] CERTIFICATE

                  SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

                  THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE
DECREASED BY THE PRINCIPAL PAYMENTS HEREON AND CERTAIN LOSSES ALLOCABLE HERETO,
AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY, FOLLOWING THE
INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE MAY BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING
THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF
THE SECURITIES ADMINISTRATOR NAMED HEREIN.

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS
MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

<PAGE>

<TABLE>
<CAPTION>
<S>                                                       <C>
Certificate No.1                                          Remittance Rate:       %

Class A-[1][2][3][4][5][6] Senior

Date of Pooling and Servicing Agreement and               Aggregate Initial Certificate Principal Balance
Cut-Off Date:                                             of this Certificate as of the Cut-Off Date:
September 1, 2003                                         $

First Distribution Date:                                  Initial Certificate Principal Balance of this
October 25, 2003                                          Certificate as of the Cut-Off Date:
                                                          $___________

Master Servicer:
Wells Fargo Bank Minnesota, National
Association                                               CUSIP: ___________

Final Distribution Date:
September 25, 2033
</TABLE>

                        MORTGAGE PASS-THROUGH CERTIFICATE
                                 SERIES 2003-2XS

         evidencing a fractional undivided interest in the distributions
         allocable to the Class A-[1][2][3][4][5][6] Certificates with respect
         to a Trust Fund consisting primarily of a pool of conventional one- to
         four-family fixed interest rate mortgage loans sold by DEUTSCHE ALT-A
         SECURITIES, INC.

                  This Certificate is payable solely from the assets of the
Trust Fund, and does not represent an obligation of or interest in Deutsche
Alt-A Securities, Inc., the Master Servicer, the Trustee or the Securities
Administrator referred to below or any of their affiliates or any other person.
Neither this Certificate nor the underlying Mortgage Loans are guaranteed or
insured by any governmental entity or by Deutsche Alt-A Securities, Inc., the
Master Servicer, the Trustee or the Securities Administrator or any of their
affiliates or any other person. None of Deutsche Alt-A Securities, Inc., the
Master Servicer or any of their affiliates will have any obligation with respect
to any certificate or other obligation secured by or payable from payments on
the Certificates.

                  This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in a trust (the "Trust Fund")
generally consisting of conventional first lien, fixed rate mortgage loans
secured by one- to four- family residences, units in planned unit developments
and individual condominium units (collectively, the "Mortgage Loans") sold by
Deutsche Alt-A Securities, Inc. ("DBALT"). The Mortgage Loans were sold by
Deutsche Bank AG New York Branch to DBALT. Wells Fargo Bank Minnesota, National
Association will act as master servicer

                                      A-1-2

<PAGE>

of the Mortgage Loans (the "Master Servicer," which term includes any successors
thereto under the Agreement referred to below). The Trust Fund was created
pursuant to the Pooling and Servicing Agreement dated as of the Cut-Off Date
specified above (the "Agreement"), among DBALT, as depositor (the "Depositor"),
Wells Fargo Bank Minnesota, National Association, as Master Servicer and
securities administrator (the "Securities Administrator") and HSBC Bank USA, as
trustee (the "Trustee"), a summary of certain of the pertinent provisions of
which is set forth hereafter. To the extent not defined herein, capitalized
terms used herein shall have the meaning ascribed to them in the Agreement. This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of its acceptance hereof assents and by which such Holder is bound.

                  [[Class A-1 Certificates:] Interest on this Certificate will
accrue during (a) as to the Distribution Date in October 2003, the period
commencing on the Closing Date and ending on the day preceding the Distribution
Date, and (b) as to any Distribution Date after the Distribution Date in October
2003, the period commencing on the Distribution Date in the month immediately
preceding the month in which that Distribution Date occurs and ending on the day
preceding that Distribution Date on the Certificate Principal Balance hereof at
a per annum rate equal to the Remittance Rate set forth above. The Securities
Administrator will distribute on the 25th day of each month, or, if such 25th
day is not a Business Day, the immediately following Business Day (each, a
"Distribution Date"), commencing on the First Distribution Date specified above,
to the Person in whose name this Certificate is registered at the close of
business on the Business Day immediately preceding such Distribution Date (the
"Record Date"), an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount (of interest and principal, if any)
required to be distributed to the Holders of Certificates of the same Class as
this Certificate. The last scheduled Distribution Date is the Distribution Date
in September 2033.]

                  [Interest on this Certificate will accrue during the month
prior to the month in which a Distribution Date (as hereinafter defined) occurs
on the Certificate Principal Balance hereof at a per annum rate equal to the
Remittance Rate set forth above. The Securities Administrator will distribute on
the 25th day of each month, or, if such 25th day is not a Business Day, the
immediately following Business Day (each, a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered at the close of business on the last Business Day of
the calendar month immediately preceding the month of such Distribution Date
(the "Record Date"), an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amount (of interest and principal, if any)
required to be distributed to the Holders of Certificates of the same Class as
this Certificate. The last scheduled Distribution Date is the Distribution Date
in September 2003.]

                  Distributions on this Certificate will be made by the
Securities Administrator by wire transfer in immediately available funds to the
account of the Person in whose name the Certificate is registered at the close
of business on the related Record Date or by any other means of payment
acceptable to such Certificateholder. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Securities
Administrator of the pendency of such distribution and only upon presentation
and surrender of this Certificate at the office or agency appointed by the
Securities Administrator for that purpose and designated in such notice. The
initial Certificate Principal Balance of this Certificate is set forth above.
The Certificate Principal Balance

                                      A-1-3

<PAGE>

hereof will be reduced to the extent of distributions allocable to principal
hereon and any losses allocable hereto as described in the Agreement.

                  This Certificate is one of a duly authorized issue of
Certificates designated as set forth on the face hereof (the "Certificates").
The Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                  The Certificateholder, by its acceptance of this Certificate,
agrees that it will look solely to the Trust Fund for payment hereunder, and
that neither the Depositor, the Trustee, the Master Servicer nor the Securities
Administrator is liable to the Certificateholders for any amount payable under
this Certificate or the Agreement or, except as expressly provided in the
Agreement, subject to any liability under the Agreement.

                  This Certificate does not purport to summarize the Agreement
and reference is made to the Agreement for the interests, rights and limitations
of rights, benefits, obligations and duties evidenced hereby, and the rights,
duties and immunities of the Securities Administrator.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the rights of the Certificateholders under the
Agreement from time to time by the parties thereto with the consent of the
Holders of Certificates affected thereby evidencing not less than 66-2/3% of the
Voting Rights. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
with the Securities Administrator upon surrender of this Certificate for
registration of transfer at the offices or agencies maintained by the Securities
Administrator for such purposes, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Securities Administrator duly
executed by the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates in authorized denominations
representing a like aggregate Percentage Interest will be issued to the
designated transferee.

                  The Certificates are issuable only as registered Certificates
without coupons in the Classes and denominations specified in the Agreement. As
provided in the Agreement and subject to certain limitations therein set forth,
this Certificate is exchangeable for one or more new Certificates evidencing the
same Class and in the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

                  No service charge will be made to the Certificateholders for
any such registration of transfer, but the Securities Administrator may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. The Depositor, the Master Servicer, the
Securities Administrator, the Trustee and any agent of any of them may treat the
Person in whose

                                      A-1-4

<PAGE>

name this Certificate is registered as the owner hereof for all purposes, and
none of Depositor, the Master Servicer, the Securities Administrator, the
Trustee or any such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby (other than the obligations to make payments to
Certificateholders with respect to the termination of the Agreement) shall
terminate upon the remittance of all funds due under the Agreement, coinciding
with or following the earlier to occur of (i) the maturity or other liquidation
(or Advance with respect thereto) of the last Mortgage Loan remaining in the
Trust Fund and disposition of all property acquired upon foreclosure or deed in
lieu of foreclosure of any Mortgage Loan or (ii) the optional repurchase by the
party named in the Agreement of all the Mortgage Loans and other assets of the
Trust Fund in accordance with the terms of the Agreement. Such optional
repurchase may be made only on or after the Distribution Date on which the
aggregate Scheduled Principal Balance of the Mortgage Loans is less than the
percentage of the aggregate Scheduled Principal Balance specified in the
Agreement of the Mortgage Loans at the Cut-Off Date. The exercise of such right
will effect the early retirement of the Certificates. In no event, however, will
the Trust Fund created by the Agreement continue beyond the expiration of 21
years after the death of certain persons identified in the Agreement.

                  Unless this Certificate has been countersigned by an
authorized signatory of the Securities Administrator by manual signature, this
Certificate shall not be entitled to any benefit under the Agreement, or be
valid for any purpose.

                                      A-1-5

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated: September 30, 2003

                                        WELLS FARGO BANK MINNESOTA,
                                        NATIONAL ASSOCIATION
                                        as Securities Administrator

                                        By:_____________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

                  This is one of the Class A-[1][2][3][4][5][6] Certificates
referred to in the within-mentioned Agreement.

                                        WELLS FARGO BANK MINNESOTA,
                                        NATIONAL ASSOCIATION
                                        as Securities Administrator

                                        By:_____________________________________
                                                    Authorized Signatory

<PAGE>

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto __________________________________ (Please print or
typewrite name and address including postal zip code of assignee) a Percentage
Interest evidenced by the within Mortgage Pass- Through Certificate and hereby
authorizes the transfer of registration of such interest to assignee on the
Certificate Register of the Trust Fund.

                  I (We) further direct the Securities Administrator to issue a
new Certificate of a like denomination and Class, to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

Dated:                          ________________________________________________
                                    Signature by or on behalf of assignor

                                                        ________________________
                                                          Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________ for the account
of _________________________ account number _____________, or, if mailed by
check, to ______________________________. Applicable statements should be mailed
to _____________________________________________.

                  This information is provided by __________________, the
assignee named above, or ________________________, as its agent.

<PAGE>

                                   EXHIBIT A-2

                         FORM OF CLASS A-IO CERTIFICATE

                  SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS
MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

<PAGE>

<TABLE>
<CAPTION>
<S>                                                       <C>
Certificate No.1                                          Remittance Rate:    %

Class A-IO

Date of Pooling and Servicing Agreement and               Aggregate Initial Notional Amount of this
Cut-Off Date:                                             Certificate as of the Cut-Off Date:
September 1, 2003                                         $___________

First Distribution Date:                                  Initial Notional Amount of this Certificate as
October 25, 2003                                          of the Cut-Off Date:
                                                          $___________

Master Servicer:
Wells Fargo Bank Minnesota, National
Association

Final Distribution Date:
September 25, 2033                                        CUSIP: ___________
</TABLE>

                        MORTGAGE PASS-THROUGH CERTIFICATE
                                 SERIES 2003-2XS

         evidencing a fractional undivided interest in the distributions
         allocable to the Class A-IO Certificates with respect to a Trust Fund
         consisting primarily of a pool of conventional one- to four-family
         fixed interest rate mortgage loans sold by DEUTSCHE ALT-A SECURITIES,
         INC.

                  This Certificate is payable solely from the assets of the
Trust Fund, and does not represent an obligation of or interest in Deutsche
Alt-A Securities, Inc., the Master Servicer, the Trustee or the Securities
Administrator referred to below or any of their affiliates or any other person.
Neither this Certificate nor the underlying Mortgage Loans are guaranteed or
insured by any governmental entity or by Deutsche Alt-A Securities, Inc., the
Master Servicer, the Trustee or the Securities Administrator or any of their
affiliates or any other person. None of Deutsche Alt-A Securities, Inc., the
Master Servicer or any of their affiliates will have any obligation with respect
to any certificate or other obligation secured by or payable from payments on
the Certificates.

                  This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in a trust (the "Trust Fund")
generally consisting of conventional first lien, fixed rate mortgage loans
secured by one- to four- family residences, units in planned unit developments
and individual condominium units (collectively, the "Mortgage Loans") sold by
Deutsche Alt-A Securities, Inc. ("DBALT"). The Mortgage Loans were sold by
Deutsche Bank AG New York Branch to DBALT. Wells Fargo Bank Minnesota, National
Association will act as master servicer

                                      A-2-2

<PAGE>

of the Mortgage Loans (the "Master Servicer," which term includes any successors
thereto under the Agreement referred to below). The Trust Fund was created
pursuant to the Pooling and Servicing Agreement dated as of the Cut-Off Date
specified above (the "Agreement"), among DBALT, as depositor (the "Depositor"),
Wells Fargo Bank Minnesota, National Association, as Master Servicer and
securities administrator (the "Securities Administrator") and HSBC Bank USA as
trustee (the "Trustee"), a summary of certain of the pertinent provisions of
which is set forth hereafter. To the extent not defined herein, capitalized
terms used herein shall have the meaning ascribed to them in the Agreement. This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of its acceptance hereof assents and by which such Holder is bound.

                  Interest on this Certificate will accrue during the month
prior to the month in which a Distribution Date (as hereinafter defined) occurs
on the Class A-IO Notional Amount hereof at a per annum rate equal to the
Remittance Rate set forth above. The Securities Administrator will distribute on
the 25th day of each month, or, if such 25th day is not a Business Day, the
immediately following Business Day (each, a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered at the close of business on the last Business Day of
the calendar month preceding the month of such Distribution Date (the "Record
Date"), an amount equal to the product of the Percentage Interest evidenced by
this Certificate and the amount of interest required to be distributed to the
Holders of Certificates of the same Class as this Certificate. The last
scheduled Distribution Date is the Distribution Date in September 2033.

                  Distributions on this Certificate will be made by the
Securities Administrator by wire transfer in immediately available funds to the
account of the Person in whose name the Certificate is registered at the close
of business on the related Record Date or by any other means of payment
acceptable to such Certificateholder. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Securities
Administrator of the pendency of such distribution and only upon presentation
and surrender of this Certificate at the office or agency appointed by the
Securities Administrator for that purpose and designated in such notice. The
Class A-IO Certificates have no Certificate Principal Balance. The initial
Notional Balance of this Certificate is set forth above.

                  This Certificate is one of a duly authorized issue of
Certificates designated as set forth on the face hereof (the "Certificates").
The Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                  The Certificateholder, by its acceptance of this Certificate,
agrees that it will look solely to the Trust Fund for payment hereunder, and
that neither the Depositor, the Securities Administrator, the Master Servicer
nor the Trustee is liable to the Certificateholders for any amount payable under
this Certificate or the Agreement or, except as expressly provided in the
Agreement, subject to any liability under the Agreement.

                  This Certificate does not purport to summarize the Agreement
and reference is made to the Agreement for the interests, rights and limitations
of rights, benefits, obligations and duties evidenced hereby, and the rights,
duties and immunities of the Securities Administrator.

                                     A-2-3

<PAGE>

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the rights of the Certificateholders under the
Agreement from time to time by the parties thereto with the consent of the
Holders of Certificates affected thereby evidencing not less than 66-2/3% of the
Voting Rights. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
with the Securities Administrator upon surrender of this Certificate for
registration of transfer at the offices or agencies maintained by the Securities
Administrator for such purposes, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Securities Administrator duly
executed by the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates in authorized denominations
representing a like aggregate Percentage Interest will be issued to the
designated transferee.

                  The Certificates are issuable only as registered Certificates
without coupons in the Classes and denominations specified in the Agreement. As
provided in the Agreement and subject to certain limitations therein set forth,
this Certificate is exchangeable for one or more new Certificates evidencing the
same Class and in the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

                  No service charge will be made to the Certificateholders for
any such registration of transfer, but the Securities Administrator may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. The Depositor, the Master Servicer, the
Securities Administrator, the Trustee and any agent of any of them may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and none of Depositor, the Master Servicer, the Securities
Administrator, the Trustee or any such agent shall be affected by notice to the
contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby (other than the obligations to make payments to
Certificateholders with respect to the termination of the Agreement) shall
terminate upon the remittance of all funds due under the Agreement, coinciding
with or following the earlier to occur of (i) the maturity or other liquidation
(or Advance with respect thereto) of the last Mortgage Loan remaining in the
Trust Fund and disposition of all property acquired upon foreclosure or deed in
lieu of foreclosure of any Mortgage Loan or (ii) the optional repurchase by the
party named in the Agreement of all the Mortgage Loans and other assets of the
Trust Fund in accordance with the terms of the Agreement. Such optional
repurchase may be made only on or after the Distribution Date on which the
aggregate Scheduled Principal Balance of the Mortgage Loans is less than the
percentage of the aggregate Scheduled Principal Balance specified in the
Agreement of the Mortgage Loans at the Cut-Off Date. The exercise of such right
will effect the early retirement of the Certificates. In no event, however, will
the Trust Fund created by the

                                      A-2-4

<PAGE>

Agreement continue beyond the expiration of 21 years after the death of certain
persons identified in the Agreement.

                  Unless this Certificate has been countersigned by an
authorized signatory of the Securities Administrator by manual signature, this
Certificate shall not be entitled to any benefit under the Agreement, or be
valid for any purpose.

                                      A-2-5

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated: September 30, 2003

                                        WELLS FARGO BANK MINNESOTA,
                                        NATIONAL ASSOCIATION
                                        as Securities Administrator

                                        By:_____________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

                  This is one of the Class A-IO Certificates referred to in the
within-mentioned Agreement.

                                        WELLS FARGO BANK MINNESOTA,
                                        NATIONAL ASSOCIATION
                                        as Securities Administrator

                                        By:_____________________________________
                                                    Authorized Signatory

<PAGE>

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto __________________________________ (Please print or
typewrite name and address including postal zip code of assignee) a Percentage
Interest evidenced by the within Mortgage Pass- Through Certificate and hereby
authorizes the transfer of registration of such interest to assignee on the
Certificate Register of the Trust Fund.

                  I (We) further direct the Securities Administrator to issue a
new Certificate of a like denomination and Class, to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

Dated:                          ________________________________________________
                                    Signature by or on behalf of assignor

                                                        ________________________
                                                          Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________ for the account
of _________________________ account number _____________, or, if mailed by
check, to ______________________________. Applicable statements should be mailed
to _____________________________________________.

                  This information is provided by __________________, the
assignee named above, or ________________________, as its agent.

<PAGE>

                                   EXHIBIT A-3

                      FORM OF CLASS M-[1][2][3] CERTIFICATE

                  THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE
CLASS A CERTIFICATES [AND][,][ THE CLASS M-1 CERTIFICATES, [AND] THE CLASS M-2
CERTIFICATES], AS DESCRIBED IN THE AGREEMENT (AS DEFINED HEREIN).

                  SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

                  THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE
DECREASED BY THE PRINCIPAL PAYMENTS HEREON AND CERTAIN LOSSES ALLOCABLE HERETO
AS DESCRIBED IN THE AGREEMENT REFERRED TO HEREIN. ACCORDINGLY, FOLLOWING THE
INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS
CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE
ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY
INQUIRY OF THE SECURITIES ADMINISTRATOR NAMED HEREIN.

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS
MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.

                  ANY TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO MAKE THE
REPRESENTATIONS SET FORTH IN SECTION 5.3(D) OF THE AGREEMENT REFERRED TO HEREIN.

                                      A-3-1

<PAGE>

<TABLE>
<CAPTION>
<S>                                                       <C>
Certificate No.1                                          Remittance Rate:   %

Class M-[1][2][3]

Date of Pooling and Servicing Agreement and               Aggregate Initial Certificate Principal Balance
Cut-Off Date:                                             of this Certificate as of the Cut-Off Date:
September 1, 2003                                         $___________

First Distribution Date:                                  Initial Certificate Principal Balance of this
October 25, 2003                                          Certificate as of the Cut-Off Date:
                                                          $___________

Master Servicer:
Wells Fargo Bank Minnesota, National
Association                                               CUSIP: ___________

Final Distribution Date:
September 25, 2033
</TABLE>

                        MORTGAGE PASS-THROUGH CERTIFICATE
                                 SERIES 2003-2XS

         evidencing a fractional undivided interest in the distributions
         allocable to the Class [M]-[1][2][3] Certificates with respect to a
         Trust Fund consisting primarily of a pool of conventional one- to
         four-family fixed interest rate mortgage loans sold by DEUTSCHE ALT-A
         SECURITIES, INC.

                  This Certificate is payable solely from the assets of the
Trust Fund, and does not represent an obligation of or interest in Deutsche
Alt-A Securities, Inc., the Master Servicer, the Trustee or the Securities
Administrator referred to below or any of their affiliates or any other person.
Neither this Certificate nor the underlying Mortgage Loans are guaranteed or
insured by any governmental entity or by Deutsche Alt-A Securities, Inc., the
Master Servicer, the Trustee or the Securities Administrator or any of their
affiliates or any other person. None of Deutsche Alt-A Securities, Inc., the
Master Servicer or any of their affiliates will have any obligation with respect
to any certificate or other obligation secured by or payable from payments on
the Certificates.

                  This certifies that Cede & Co. is the registered owner of the
Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in a trust (the "Trust Fund")
generally consisting of conventional first lien, fixed rate mortgage loans
secured by one- to four- family residences, units in planned unit developments
and individual condominium units (collectively, the "Mortgage Loans") sold by
Deutsche Alt-A Securities, Inc. ("DBALT"). The Mortgage Loans were sold by
Deutsche Bank AG New York Branch to DBALT. Wells Fargo Bank Minnesota, National
Association will act as master servicer of the Mortgage Loans (the "Master
Servicer," which term includes any successors thereto under the

                                      A-3-2

<PAGE>

Agreement referred to below). The Trust Fund was created pursuant to the Pooling
and Servicing Agreement dated as of the Cut-Off Date specified above (the
"Agreement"), among DBALT, as depositor (the "Depositor"), Wells Fargo Bank
Minnesota, National Association, as Master Servicer and securities administrator
(the "Securities Administrator") and HSBC Bank USA as trustee (the "Trustee"), a
summary of certain of the pertinent provisions of which is set forth hereafter.
To the extent not defined herein, capitalized terms used herein shall have the
meaning ascribed to them in the Agreement. This Certificate is issued under and
is subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of its acceptance hereof
assents and by which such Holder is bound.

                  Interest on this Certificate will accrue during the month
prior to the month in which a Distribution Date (as hereinafter defined) occurs
on the Certificate Principal Balance hereof at a per annum rate equal to the
Remittance Rate set forth above. The Securities Administrator will distribute on
the 25th day of each month, or, if such 25th day is not a Business Day, the
immediately following Business Day (each, a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered at the close of business on the last Business Day of
the calendar month preceding the month of such Distribution Date (the "Record
Date"), an amount equal to the product of the Percentage Interest evidenced by
this Certificate and the amount (of interest and principal, if any) required to
be distributed to the Holders of Certificates of the same Class as this
Certificate. The last scheduled Distribution Date is the Distribution Date in
September 2033.

                  Distributions on this Certificate will be made by the
Securities Administrator by wire transfer in immediately available funds to the
account of the Person in whose name the Certificate is registered at the close
of business on the related Record Date or by any other means of payment
acceptable to such Certificateholder. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Securities
Administrator of the pendency of such distribution and only upon presentation
and surrender of this Certificate at the office or agency appointed by the
Securities Administrator for that purpose and designated in such notice. The
initial Certificate Principal Balance of this Certificate is set forth above.
The Certificate Principal Balance hereof will be reduced to the extent of
distributions allocable to principal hereon and any Realized Losses allocable
hereto as described in the Agreement.

                  Any transferee of this certificate shall be deemed to make the
representations set forth in section 5.3(d) of the Agreement.

                  This Certificate is one of a duly authorized issue of
Certificates designated as set forth on the face hereof (the "Certificates").
The Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                  The Certificateholder, by its acceptance of this Certificate,
agrees that it will look solely to the Trust Fund for payment hereunder and that
neither the Depositor, the Trustee, the Master Servicer nor the Securities
Administrator is liable to the Certificateholders for any amount payable under
this Certificate or the Agreement or, except as expressly provided in the
Agreement, subject to any liability under the Agreement.

                                      A-3-3

<PAGE>

                  This Certificate does not purport to summarize the Agreement
and reference is made to the Agreement for the interests, rights and limitations
of rights, benefits, obligations and duties evidenced hereby, and the rights,
duties and immunities of the Securities Administrator.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the rights of the Certificateholders under the
Agreement from time to time by the parties thereto with the consent of the
Holders of Certificates affected thereby evidencing not less than 66-2/3% of the
Voting Rights. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
with the Securities Administrator upon surrender of this Certificate for
registration of transfer at the offices or agencies maintained by the Securities
Administrator for such purposes, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Securities Administrator duly
executed by the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates in authorized denominations
representing a like aggregate Percentage Interest will be issued to the
designated transferee.

                  The Certificates are issuable only as registered Certificates
without coupons in the Classes and denominations specified in the Agreement. As
provided in the Agreement and subject to certain limitations therein set forth,
this Certificate is exchangeable for one or more new Certificates evidencing the
same Class and in the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

                  No service charge will be made to the Certificateholders for
any such registration of transfer, but the Securities Administrator may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. The Depositor, the Master Servicer, the
Trustee, the Securities Administrator and any agent of any of them may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and none of the Depositor, the Master Servicer, the Trustee, the
Securities Administrator or any such agent shall be affected by notice to the
contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby (other than the obligations to make payments to
Certificateholders with respect to the termination of the Agreement) shall
terminate upon the remittance of all funds due under the Agreement, coinciding
with or following the earlier to occur of (i) the maturity or other liquidation
(or Advance with respect thereto) of the last Mortgage Loan remaining in the
Trust Fund and disposition of all property acquired upon foreclosure or deed in
lieu of foreclosure of any Mortgage Loan or (ii) the optional repurchase by the
party named in the Agreement of all the Mortgage Loans and other assets of the
Trust Fund in accordance with the terms of the Agreement. Such optional
repurchase may be made only on or after the Distribution Date on which the
aggregate Scheduled Principal Balance of the Mortgage Loans is less than the
percentage of the aggregate Scheduled Principal Balance specified

                                      A-3-4

<PAGE>

in the Agreement of the Mortgage Loans at the Cut-Off Date. The exercise of such
right will effect the early retirement of the Certificates. In no event,
however, will the Trust Fund created by the Agreement continue beyond the
expiration of 21 years after the death of certain persons identified in the
Agreement.

                  Unless this Certificate has been countersigned by an
authorized signatory of the Securities Administrator by manual signature, this
Certificate shall not be entitled to any benefit under the Agreement, or be
valid for any purpose.

                                      A-3-5

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated: September 30, 2003

                                        WELLS FARGO BANK MINNESOTA,
                                        NATIONAL ASSOCIATION
                                        as Securities Administrator

                                        By:_____________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

                  This is one of the Class M-[1][2][3] Certificates referred to
in the within-mentioned Agreement.

                                        WELLS FARGO BANK MINNESOTA,
                                        NATIONAL ASSOCIATION
                                        as Securities Administrator

                                        By:_____________________________________
                                                    Authorized Signatory

<PAGE>

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto __________________________________ (Please print or
typewrite name and address including postal zip code of assignee) a Percentage
Interest evidenced by the within Mortgage Pass- Through Certificate and hereby
authorizes the transfer of registration of such interest to assignee on the
Certificate Register of the Trust Fund.

                  I (We) further direct the Securities Administrator to issue a
new Certificate of a like denomination and Class, to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

Dated:                          ________________________________________________
                                    Signature by or on behalf of assignor

                                                        ________________________
                                                          Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________ for the account
of _________________________ account number _____________, or, if mailed by
check, to ______________________________. Applicable statements should be mailed
to _____________________________________________.

                  This information is provided by __________________, the
assignee named above, or ________________________, as its agent.

<PAGE>

                                   EXHIBIT A-4

                          FORM OF CLASS CE CERTIFICATE

                  THIS CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE
CLASS A CERTIFICATES AND THE CLASS M CERTIFICATES, AS DESCRIBED IN THE AGREEMENT
(AS DEFINED HEREIN).

                  SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

                  DISTRIBUTIONS IN REDUCTION OF THE CERTIFICATE PRINCIPAL
BALANCE OF THIS CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING CERTIFICATE PRINCIPAL BALANCE HEREOF AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN AS THE DENOMINATION OF THIS CERTIFICATE.

                  THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND
MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT
AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM
REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 5.3 OF THE AGREEMENT.

                  NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON,
UNLESS THE TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 5.3(D)
OF THE AGREEMENT OR AN OPINION OF COUNSEL UNDER SECTION 5.3(D) OF THE AGREEMENT
THAT THE PURCHASE OF THIS CERTIFICATE IS PERMISSIBLE UNDER APPLICABLE LAW, WILL
NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION
406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE DEPOSITOR, THE
MASTER SERVICER, THE TRUSTEE OR THE SECURITIES ADMINISTRATOR TO ANY OBLIGATION
OR LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.

                                      A-4-1

<PAGE>

<TABLE>
<CAPTION>
<S>                                                       <C>
Certificate No.1

Class CE

Date of Pooling and Servicing Agreement and               Aggregate Initial Certificate Principal Balance
Cut-Off Date:                                             of this Certificate as of the Cut-Off Date:
September 1, 2003                                         $_________

First Distribution Date:                                  Initial Certificate Principal Balance of this
October 25, 2003                                          Certificate as of the Cut-Off Date:
                                                          $__________

Master Servicer:
Wells Fargo Bank Minnesota, National
Association                                               CUSIP:

Final Distribution Date:
September 25, 2033
</TABLE>

                        MORTGAGE PASS-THROUGH CERTIFICATE
                                 SERIES 2003-2XS

         evidencing a fractional undivided interest in the distributions
         allocable to the Class CE Certificates with respect to a Trust Fund
         consisting primarily of a pool of conventional one- to four-family
         fixed interest rate mortgage loans sold by DEUTSCHE ALT-A SECURITIES,
         INC.

                  This Certificate is payable solely from the assets of the
Trust Fund, and does not represent an obligation of or interest in Deutsche
Alt-A Securities, Inc., the Master Servicer, the Trustee or the Securities
Administrator referred to below or any of their affiliates or any other person.
Neither this Certificate nor the underlying Mortgage Loans are guaranteed or
insured by any governmental entity or by Deutsche Alt-A Securities, Inc., the
Master Servicer, the Trustee or the Securities Administrator or any of their
affiliates or any other person. None of Deutsche Alt-A Securities, Inc., the
Master Servicer or any of their affiliates will have any obligation with respect
to any certificate or other obligation secured by or payable from payments on
the Certificates.

                  This certifies that Sharps SP I LLC is the registered owner of
the Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in a trust (the "Trust Fund")
generally consisting of conventional first lien, fixed rate mortgage loans
secured by one- to four- family residences, units in planned unit developments
and individual condominium units (collectively, the "Mortgage Loans") sold by
Deutsche Alt-A Securities, Inc. ("DBALT"). The Mortgage Loans were sold by
Deutsche Bank AG New York Branch to DBALT. Wells Fargo Bank Minnesota, National
Association will act as master servicer of the Mortgage Loans (the "Master
Servicer," which term includes any successors thereto under the Agreement
referred to below). The Trust Fund was created pursuant to the Pooling and
Servicing

                                      A-4-2

<PAGE>

Agreement dated as of the Cut-Off Date specified above (the "Agreement"), among
DBALT, as depositor (the "Depositor"), Wells Fargo Bank Minnesota, National
Association, as Master Servicer and securities administrator (the "Securities
Administrator") and HSBC Bank USA as trustee (the "Trustee"), a summary of
certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, capitalized terms used herein shall have the meaning
ascribed to them in the Agreement. This Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of its acceptance hereof
assents and by which such Holder is bound.

                  Interest on this Certificate will accrue during the month
prior to the month in which a Distribution Date (as hereinafter defined) occurs
on the Certificate Principal Balance hereof at a per annum rate equal to the
Remittance Rate set forth above. The Securities Administrator will distribute on
the 25th day of each month, or, if such 25th day is not a Business Day, the
immediately following Business Day (each, a "Distribution Date"), commencing on
the First Distribution Date specified above, to the Person in whose name this
Certificate is registered at the close of business on the last Business Day of
the calendar month preceding the month of such Distribution Date (the "Record
Date"), an amount equal to the product of the Percentage Interest evidenced by
this Certificate and the amount (of interest and principal, if any) required to
be distributed to the Holders of Certificates of the same Class as this
Certificate. The last scheduled Distribution Date is the Distribution Date in
September 2033.

                  Distributions on this Certificate will be made by the
Securities Administrator by wire transfer in immediately available funds to the
account of the Person in whose name the Certificate is registered at the close
of business on the related Record Date or by any other means of payment
acceptable to such Certificateholder. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Securities
Administrator of the pendency of such distribution and only upon presentation
and surrender of this Certificate at the office or agency appointed by the
Securities Administrator for that purpose and designated in such notice. The
initial Certificate Principal Balance of this Certificate is set forth above.
The Certificate Principal Balance hereof will be reduced to the extent of
distributions allocable to principal hereon and certain losses allocable hereto
as described in the Agreement.

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of this Certificate is to be made without
registration or qualification, the Securities Administrator shall require
receipt of (i) if such transfer is purportedly being made in reliance upon Rule
144A under the 1933 Act, written certifications from the Holder of the
Certificate desiring to effect the transfer, and from such Holder's prospective
transferee, substantially in the forms attached to the Agreement as Exhibit D
and either Exhibit E or Exhibit F, as applicable, and (ii) in all other cases,
an Opinion of Counsel reasonably satisfactory to the Trustee, the Depositor and
the Securities Administrator that such transfer may be made without such
registration or qualification (which Opinion of Counsel shall not be an expense
of the Trust Fund or of the Depositor, the Trustee, the Securities Administrator
or the Master Servicer in their respective capacities as such), together with
copies of the written certification(s) of the Holder of the Certificate desiring
to effect the transfer and/or such Holder's prospective transferee upon which
such Opinion of Counsel is based. None of the Depositor, the

                                      A-4-3

<PAGE>

Securities Administrator or the Trustee is obligated to register or qualify the
Class of Certificates specified on the face hereof under the 1933 Act or any
other securities law or to take any action not otherwise required under the
Agreement to permit the transfer of such Certificates without registration or
qualification. Any Holder desiring to effect a transfer of this Certificate
shall be required to indemnify the Trustee, the Securities Administrator, the
Depositor, the Seller and the Master Servicer against any liability that may
result if the transfer is not so exempt or is not made in accordance with such
federal and state laws.

                  No transfer of this Class CE Certificate will be made unless
the Depositor, the Trustee and the Securities Administrator have received either
(i) an opinion of counsel under Section 5.3(d) of the Agreement stating, among
other things, that the transferee's acquisition of a Class CE Certificate is
permissible under applicable law, will not constitute or result in a non-exempt
prohibited transaction under Section 406 of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA") or Section 4975 of the Internal
Revenue Code (the "Code") and will not subject the Depositor, the Trustee, the
Securities Administrator or the Master Servicer to any obligation or liability
in addition to those undertaken in the Agreement or (ii) a representation
letter, in the form as described by the Agreement, stating that the transferee
is not an employee benefit or other plan subject to the prohibited transaction
provisions of ERISA or Section 4975 of the Code (a "Plan"), or any other person
(including an investment manager, a named fiduciary or a trustee of any Plan)
acting, directly or indirectly, on behalf of or purchasing any Certificate with
"plan assets" of any Plan.

                  This Certificate is one of a duly authorized issue of
Certificates designated as set forth on the face hereof (the "Certificates").
The Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                  The Certificateholder, by its acceptance of this Certificate,
agrees that it will look solely to the Trust Fund for payment hereunder and that
neither the Trustee nor the Securities Administrator is liable to the
Certificateholders for any amount payable under this Certificate or the
Agreement or, except as expressly provided in the Agreement, subject to any
liability under the Agreement.

                  This Certificate does not purport to summarize the Agreement
and reference is made to the Agreement for the interests, rights and limitations
of rights, benefits, obligations and duties evidenced hereby, and the rights,
duties and immunities of the Securities Administrator.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the rights of the Certificateholders under the
Agreement from time to time by the parties thereto with the consent of the
Holders of Certificates affected thereby evidencing not less than 66-2/3% of the
Voting Rights. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
with the Securities Administrator upon surrender of this Certificate for
registration of transfer at the offices or agencies maintained by the Securities
Administrator for

                                      A-4-4

<PAGE>

such purposes, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Securities Administrator duly executed by
the Holder hereof or such Holder's attorney duly authorized in writing, and
thereupon one or more new Certificates in authorized denominations representing
a like aggregate Percentage Interest will be issued to the designated
transferee.

                  The Certificates are issuable only as registered Certificates
without coupons in the Classes and denominations specified in the Agreement. As
provided in the Agreement and subject to certain limitations therein set forth,
this Certificate is exchangeable for one or more new Certificates evidencing the
same Class and in the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

                  No service charge will be made to the Certificateholders for
any such registration of transfer, but the Securities Administrator may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. The Depositor, the Master Servicer, the
Trustee, the Securities Administrator and any agent of any of them may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and none of the Depositor, the Master Servicer, the Trustee, the
Securities Administrator or any such agent shall be affected by notice to the
contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby (other than the obligations to make payments to
Certificateholders with respect to the termination of the Agreement) shall
terminate upon the remittance of all funds due under the Agreement, coinciding
with or following the earlier to occur of (i) the maturity or other liquidation
(or Advance with respect thereto) of the last Mortgage Loan remaining in the
Trust Fund and disposition of all property acquired upon foreclosure or deed in
lieu of foreclosure of any Mortgage Loan or (ii) the optional repurchase by the
party named in the Agreement of all the Mortgage Loans and other assets of the
Trust Fund in accordance with the terms of the Agreement. Such optional
repurchase may be made only on or after the Distribution Date on which the
aggregate Scheduled Principal Balance of the Mortgage Loans is less than the
percentage of the aggregate Scheduled Principal Balance specified in the
Agreement of the Mortgage Loans at the Cut-Off Date. The exercise of such right
will effect the early retirement of the Certificates. In no event, however, will
the Trust Fund created by the Agreement continue beyond the expiration of 21
years after the death of certain persons identified in the Agreement.

                  Unless this Certificate has been countersigned by an
authorized signatory of the Securities Administrator by manual signature, this
Certificate shall not be entitled to any benefit under the Agreement, or be
valid for any purpose.

                                      A-4-5

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated: September 30, 2003

                                        WELLS FARGO BANK MINNESOTA,
                                        NATIONAL ASSOCIATION
                                        as Securities Administrator

                                        By:_____________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

                  This is one of the Class CE Certificates referred to in the
within-mentioned Agreement.

                                        WELLS FARGO BANK MINNESOTA,
                                        NATIONAL ASSOCIATION
                                        as Securities Administrator

                                        By:_____________________________________
                                                    Authorized Signatory

<PAGE>

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto __________________________________ (Please print or
typewrite name and address including postal zip code of assignee) a Percentage
Interest evidenced by the within Mortgage Pass- Through Certificate and hereby
authorizes the transfer of registration of such interest to assignee on the
Certificate Register of the Trust Fund.

                  I (We) further direct the Securities Administrator to issue a
new Certificate of a like denomination and Class, to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

Dated:                          ________________________________________________
                                    Signature by or on behalf of assignor

                                                        ________________________
                                                          Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________ for the account
of _________________________ account number _____________, or, if mailed by
check, to ______________________________. Applicable statements should be mailed
to _____________________________________________.

                  This information is provided by __________________, the
assignee named above, or ________________________, as its agent.

<PAGE>

                                   EXHIBIT A-5

                           FORM OF CLASS P CERTIFICATE

                  SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
IS A "REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

                  THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND
MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT
AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM
REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 5.3 OF THE AGREEMENT.

                  NO TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR
OTHER RETIREMENT ARRANGEMENT SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974, AS AMENDED, OR THE CODE WILL BE REGISTERED EXCEPT IN COMPLIANCE
WITH THE PROCEDURES DESCRIBED HEREIN.

                                      A-5-1

<PAGE>

<TABLE>
<CAPTION>
<S>                                                       <C>
Certificate No.1

Class P

Date of Pooling and Servicing Agreement and               Aggregate Initial Certificate Principal Balance
Cut-Off Date:                                             of this Certificate as of the Cut-Off Date:
September 1, 2003                                         $100.00

First Distribution Date:                                  Initial Certificate Principal Balance of this
October 25, 2003                                          Certificate as of the Cut-Off Date:
                                                          $100.00

Master Servicer:
Wells Fargo Bank Minnesota, National
Association                                               CUSIP:

Final Distribution Date:
September 25, 2033
</TABLE>

                        MORTGAGE PASS-THROUGH CERTIFICATE
                                 SERIES 2003-2XS

         evidencing a fractional undivided interest in the distributions
         allocable to the Class P Certificates with respect to a Trust Fund
         consisting primarily of a pool of conventional one- to four-family
         fixed interest rate mortgage loans sold by DEUTSCHE ALT-A SECURITIES,
         INC.

                  This Certificate is payable solely from the assets of the
Trust Fund, and does not represent an obligation of or interest in Deutsche
Alt-A Securities, Inc., the Master Servicer, the Trustee or the Securities
Administrator referred to below or any of their affiliates or any other person.
Neither this Certificate nor the underlying Mortgage Loans are guaranteed or
insured by any governmental entity or by Deutsche Alt-A Securities, Inc., the
Master Servicer, the Trustee or the Securities Administrator or any of their
affiliates or any other person. None of Deutsche Alt-A Securities, Inc., the
Master Servicer or any of their affiliates will have any obligation with respect
to any certificate or other obligation secured by or payable from payments on
the Certificates.

                  This certifies that Sharps SP I LLC is the registered owner of
the Percentage Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in a trust (the "Trust Fund")
generally consisting of conventional first lien, fixed rate mortgage loans
secured by one- to four- family residences, units in planned unit developments
and individual condominium units (collectively, the "Mortgage Loans") sold by
Deutsche Alt-A Securities, Inc. ("DBALT"). The Mortgage Loans were sold by
Deutsche Bank AG New York Branch to DBALT. Wells Fargo Bank Minnesota, National
Association will act as master servicer of the Mortgage Loans (the "Master
Servicer," which term includes any successors thereto under the

                                      A-5-2

<PAGE>

Agreement referred to below). The Trust Fund was created pursuant to the Pooling
and Servicing Agreement dated as of the Cut-Off Date specified above (the
"Agreement"), among DBALT, as depositor (the "Depositor"), Wells Fargo Bank
Minnesota, National Association, as Master Servicer and securities administrator
(the "Securities Administrator") and HSBC Bank USA as trustee (the "Trustee"), a
summary of certain of the pertinent provisions of which is set forth hereafter.
To the extent not defined herein, capitalized terms used herein shall have the
meaning ascribed to them in the Agreement. This Certificate is issued under and
is subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of its acceptance hereof
assents and by which such Holder is bound.

                  Pursuant to the terms of the Agreement, distributions will be
made on the 25th day of each month or, if such 25th day is not a Business Day,
the Business Day immediately following such 25th day (a "Distribution Date"),
commencing on the First Distribution Date specified above, to the Person in
whose name this Certificate is registered on the last Business Day of the
calendar month immediately preceding the month in which the related Distribution
Date occurs (the "Record Date"), in an amount equal to the product of the
Percentage Interest evidenced by this Certificate and the amount required to be
distributed to the Holders of the Class P Certificates on such Distribution Date
pursuant to the Agreement.

                  The Certificates are limited in right of payment to certain
collections and recoveries respecting the Mortgage Loans, all as more
specifically set forth herein and in the Agreement. As provided in the
Agreement, withdrawals from the Collection Account and the Distribution Account
may be made from time to time for purposes other than the distributions to
Certificateholders, such purposes including the reimbursement of advances made,
or certain expenses incurred, with respect to the Mortgage Loans.

                  Distributions on this Certificate will be made by the
Securities Administrator by wire transfer in immediately available funds to the
account of the Person in whose name the Certificate is registered at the close
of business on the related Record Date or by any other means of payment
acceptable to such Certificateholder. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Securities
Administrator of the pendency of such distribution and only upon presentation
and surrender of this Certificate at the office or agency appointed by the
Securities Administrator for that purpose and designated in such notice. The
initial Certificate Principal Balance of this Certificate is set forth above.

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of this Certificate is to be made without
registration or qualification, the Securities Administrator shall require
receipt of (i) if such transfer is purportedly being made in reliance upon Rule
144A under the 1933 Act, written certifications from the Holder of the
Certificate desiring to effect the transfer, and from such Holder's prospective
transferee, substantially in the forms attached to the Agreement as Exhibit D
and either Exhibit E or Exhibit F, as applicable, and (ii) in all other cases,
an Opinion of Counsel reasonably satisfactory to the Trustee, the Depositor and
the Securities Administrator that such transfer may be made without such
registration or qualification (which Opinion of Counsel shall not be an expense
of the Trust Fund or of the Depositor, the Trustee, the Securities Administrator
or

                                      A-5-3

<PAGE>

the Master Servicer in their respective capacities as such), together with
copies of the written certification(s) of the Holder of the Certificate desiring
to effect the transfer and/or such Holder's prospective transferee upon which
such Opinion of Counsel is based. None of the Depositor, the Securities
Administrator or the Trustee is obligated to register or qualify the Class of
Certificates specified on the face hereof under the 1933 Act or any other
securities law or to take any action not otherwise required under the Agreement
to permit the transfer of such Certificates without registration or
qualification. Any Holder desiring to effect a transfer of this Certificate
shall be required to indemnify the Trustee, the Securities Administrator, the
Depositor, the Seller and the Master Servicer against any liability that may
result if the transfer is not so exempt or is not made in accordance with such
federal and state laws.

                  No transfer of this Class P Certificate will be made unless
the Depositor, the Trustee and the Securities Administrator have received either
(i) an opinion of counsel under Section 5.3(d) of the Agreement stating, among
other things, that the transferee's acquisition of a Class P Certificate is
permissible under applicable law, will not constitute or result in a non-exempt
prohibited transaction under Section 406 of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA") or Section 4975 of the Internal
Revenue Code (the "Code") and will not subject the Depositor, the Trustee, the
Securities Administrator or the Master Servicer to any obligation or liability
in addition to those undertaken in the Agreement or (ii) a representation
letter, in the form as described by the Agreement, stating that the transferee
is not an employee benefit or other plan subject to the prohibited transaction
provisions of ERISA or Section 4975 of the Code (a "Plan"), or any other person
(including an investment manager, a named fiduciary or a trustee of any Plan)
acting, directly or indirectly, on behalf of or purchasing any Certificate with
"plan assets" of any Plan.

                  This Certificate is one of a duly authorized issue of
Certificates designated as set forth on the face hereof (the "Certificates").
The Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                  The Certificateholder, by its acceptance of this Certificate,
agrees that it will look solely to the Trust Fund for payment hereunder and that
neither the Trustee nor the Securities Administrator is liable to the
Certificateholders for any amount payable under this Certificate or the
Agreement or, except as expressly provided in the Agreement, subject to any
liability under the Agreement.

                  This Certificate does not purport to summarize the Agreement
and reference is made to the Agreement for the interests, rights and limitations
of rights, benefits, obligations and duties evidenced hereby, and the rights,
duties and immunities of the Securities Administrator.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the rights of the Certificateholders under the
Agreement from time to time by the parties thereto with the consent of the
Holders of Certificates affected thereby evidencing not less than 66-2/3% of the
Voting Rights. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

                                      A-5-4

<PAGE>

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
with the Securities Administrator upon surrender of this Certificate for
registration of transfer at the offices or agencies maintained by the Securities
Administrator for such purposes, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Securities Administrator duly
executed by the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates in authorized denominations
representing a like aggregate Percentage Interest will be issued to the
designated transferee.

                  The Certificates are issuable only as registered Certificates
without coupons in the Classes and denominations specified in the Agreement. As
provided in the Agreement and subject to certain limitations therein set forth,
this Certificate is exchangeable for one or more new Certificates evidencing the
same Class and in the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

                  No service charge will be made to the Certificateholders for
any such registration of transfer, but the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Depositor, the Master Servicer, the Securities Administrator, the
Trustee and any agent of any of them may treat the Person in whose name this
Certificate is registered as the owner hereof for all purposes, and none of the
Depositor, the Master Servicer, the Securities Administrator, the Trustee or any
such agent shall be affected by notice to the contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby (other than the obligations to make payments to
Certificateholders with respect to the termination of the Agreement) shall
terminate upon the remittance of all funds due under the Agreement, coinciding
with or following the earlier to occur of (i) the maturity or other liquidation
(or Advance with respect thereto) of the last Mortgage Loan remaining in the
Trust Fund and disposition of all property acquired upon foreclosure or deed in
lieu of foreclosure of any Mortgage Loan or (ii) the optional repurchase by the
party named in the Agreement of all the Mortgage Loans and other assets of the
Trust Fund in accordance with the terms of the Agreement. Such optional
repurchase may be made only on or after the Distribution Date on which the
aggregate Scheduled Principal Balance of the Mortgage Loans is less than the
percentage of the aggregate Scheduled Principal Balance specified in the
Agreement of the Mortgage Loans at the Cut-Off Date. The exercise of such right
will effect the early retirement of the Certificates. In no event, however, will
the Trust Fund created by the Agreement continue beyond the expiration of 21
years after the death of certain persons identified in the Agreement.

                  Unless this Certificate has been countersigned by an
authorized signatory of the Securities Administrator by manual signature, this
Certificate shall not be entitled to any benefit under the Agreement, or be
valid for any purpose.

                                      A-5-5

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated: September 30, 2003

                                        WELLS FARGO BANK MINNESOTA,
                                        NATIONAL ASSOCIATION
                                        as Securities Administrator

                                        By:_____________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

                  This is one of the Class P Certificates referred to in the
within-mentioned Agreement.

                                        WELLS FARGO BANK MINNESOTA,
                                        NATIONAL ASSOCIATION
                                        as Securities Administrator

                                        By:_____________________________________
                                                    Authorized Signatory

<PAGE>

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto __________________________________ (Please print or
typewrite name and address including postal zip code of assignee) a Percentage
Interest evidenced by the within Mortgage Pass- Through Certificate and hereby
authorizes the transfer of registration of such interest to assignee on the
Certificate Register of the Trust Fund.

                  I (We) further direct the Securities Administrator to issue a
new Certificate of a like denomination and Class, to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

Dated:                          ________________________________________________
                                    Signature by or on behalf of assignor

                                                        ________________________
                                                          Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________ for the account
of _________________________ account number _____________, or, if mailed by
check, to ______________________________. Applicable statements should be mailed
to _____________________________________________.

                  This information is provided by __________________, the
assignee named above, or ________________________, as its agent.

<PAGE>

                                   EXHIBIT A-6

                           FORM OF CLASS R CERTIFICATE

                  THIS CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A
NON-UNITED STATES PERSON OR A DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

                  SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE
IS A "RESIDUAL INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT" AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986 (THE "CODE").

                  ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE
MAY BE MADE ONLY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5.3 OF THE
AGREEMENT REFERRED TO HEREIN.

                  NO TRANSFER OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON,
UNLESS THE TRANSFEREE PROVIDES EITHER A CERTIFICATION PURSUANT TO SECTION 5.3 OF
THE AGREEMENT OR AN OPINION OF COUNSEL UNDER SECTION 5.3(D) OF THE AGREEMENT
THAT THE PURCHASE OF THIS CERTIFICATE IS PERMISSIBLE UNDER APPLICABLE LAW, WILL
NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION
406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA"), OR SECTION 4975 OF THE CODE AND WILL NOT SUBJECT THE MASTER SERVICER,
THE TRUSTEE, THE DEPOSITOR OR THE SECURITIES ADMINISTRATOR TO ANY OBLIGATION OR
LIABILITY IN ADDITION TO THOSE UNDERTAKEN IN THE AGREEMENT.

                  ANY RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE
MAY BE MADE ONLY IF THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE
TRUSTEE THAT (A) SUCH TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY POSSESSION
THEREOF, ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY
INTERNATIONAL ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE
FOREGOING, (2) ANY ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION
521 OF THE CODE) THAT IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE
UNLESS SUCH ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE
CODE, (3) ANY ORGANIZATION DESCRIBED IN SECTION 1381(A)(2)(C) OF THE CODE (ANY
SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR (3) SHALL HEREINAFTER
BE REFERRED TO AS A "DISQUALIFIED ORGANIZATION") OR (4) AN AGENT OF A
DISQUALIFIED ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE
ASSESSMENT OR COLLECTION OF TAX, AND (II) SUCH TRANSFEREE SATISFIES CERTAIN
ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED
TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY
TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED
ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL
BE DEEMED TO BE

                                      A-6-1

<PAGE>

OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED TO BE
A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO,
THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF THIS
CERTIFICATE BY ACCEPTANCE HEREOF SHALL BE DEEMED TO HAVE CONSENTED TO THE
PROVISIONS OF THIS PARAGRAPH AND THE PROVISIONS OF SECTION 5.3(D) OF THE
AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED ORGANIZATION IS
PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS CERTIFICATE.

                  THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND
MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT
AND LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM
REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 5.3 OF THE AGREEMENT.

                                      A-6-2

<PAGE>

<TABLE>
<CAPTION>
<S>                                                       <C>
Certificate No.1

Class R                                                   Percentage Interest: 100%

Date of Pooling and Servicing Agreement and               Aggregate Initial Certificate Principal Balance
Cut-Off Date:                                             of this Certificate as of the Cut-Off Date:
September 1, 2003                                         $0

First Distribution Date:                                  Initial Certificate Principal Balance of this
October 25, 2003                                          Certificate as of the Cut-Off Date: $0

Master Servicer:
Wells Fargo Bank Minnesota, National
Association                                               CUSIP:

Final Distribution Date:
September 25, 2033
</TABLE>

                        MORTGAGE PASS-THROUGH CERTIFICATE
                                 SERIES 2003-2XS

         evidencing a fractional undivided interest in the distributions
         allocable to the Class R Certificates with respect to a Trust Fund
         consisting primarily of a pool of conventional one- to four-family
         fixed interest rate mortgage loans sold by DEUTSCHE ALT-A SECURITIES,
         INC.

                  This Certificate is payable solely from the assets of the
Trust Fund, and does not represent an obligation of or interest in Deutsche
Alt-A Securities, Inc., the Master Servicer, the Trustee or the Securities
Administrator referred to below or any of their affiliates or any other person.
Neither this Certificate nor the underlying Mortgage Loans are guaranteed or
insured by any governmental entity or by Deutsche Alt-A Securities, Inc., the
Master Servicer, the Trustee or the Securities Administrator or any of their
affiliates or any other person. None of Deutsche Alt-A Securities, Inc., the
Master Servicer or any of their affiliates will have any obligation with respect
to any certificate or other obligation secured by or payable from payments on
the Certificates.

                  This certifies that Deutsche Bank Securities Inc. is the
registered owner of the Percentage Interest evidenced hereby in the beneficial
ownership interest of Certificates of the same Class as this Certificate in a
trust (the "Trust Fund") generally consisting of conventional first lien, fixed
rate mortgage loans secured by one- to four- family residences, units in planned
unit developments and individual condominium units (collectively, the "Mortgage
Loans") sold by Deutsche Alt-A Securities, Inc. ("DBALT"). The Mortgage Loans
were sold by Deutsche Bank AG New York Branch to DBALT. Wells Fargo Bank
Minnesota, National Association will act as master servicer of the Mortgage
Loans (the "Master Servicer," which term includes any successors thereto under
the Agreement referred to below). The Trust Fund was created pursuant to the
Pooling and Servicing

                                      A-6-3

<PAGE>

Agreement dated as of the Cut-Off Date specified above (the "Agreement"), among
DBALT, as depositor (the "Depositor"), Wells Fargo Bank Minnesota, National
Association, as Master Servicer and securities administrator (the "Securities
Administrator") and HSBC Bank USA as trustee (the "Trustee"), a summary of
certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, capitalized terms used herein shall have the meaning
ascribed to them in the Agreement. This Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which
Agreement the Holder of this Certificate by virtue of its acceptance hereof
assents and by which such Holder is bound.

                  Each Holder of this Certificate will be deemed to have agreed
to be bound by the restrictions set forth in the Agreement to the effect that
(i) each person holding or acquiring any Ownership Interest in this Certificate
must be a United States Person and a Permitted Transferee, (ii) the transfer of
any Ownership Interest in this Certificate will be conditioned upon the delivery
to the Securities Administrator of, among other things, an affidavit to the
effect that it is a United States Person and Permitted Transferee, (iii) any
attempted or purported transfer of any Ownership Interest in this Certificate in
violation of such restrictions will be absolutely null and void and will vest no
rights in the purported transferee, and (iv) if any person other than a United
States Person and a Permitted Transferee acquires any Ownership Interest in this
Certificate in violation of such restrictions, then the Depositor will have the
right, in its sole discretion and without notice to the Holder of this
Certificate, to sell this Certificate to a purchaser selected by the Depositor,
which purchaser may be the Depositor, or any affiliate of the Depositor, on such
terms and conditions as the Depositor may choose.

                  The Securities Administrator will distribute on the 25th day
of each month, or, if such 25th day is not a Business Day, the immediately
following Business Day (each, a "Distribution Date"), commencing on the First
Distribution Date specified above, to the Person in whose name this Certificate
is registered at the close of business on the last Business Day of the calendar
month immediately preceding the month in which such Distribution Date occurs
(the "Record Date"), an amount equal to the product of the Percentage Interest
evidenced by this Certificate and the amounts required to be distributed to the
Holders of Certificates of the same Class as this Certificate. The last
scheduled Distribution Date is the Distribution Date in September 2033.

                  Distributions on this Certificate will be made by the
Securities Administrator by wire transfer in immediately available funds to the
account of the Person in whose name the Certificate is registered at the close
of business on the related Record Date or by any other means of payment
acceptable to such Certificateholder. Notwithstanding the above, the final
distribution on this Certificate will be made after due notice by the Securities
Administrator of the pendency of such distribution and only upon presentation
and surrender of this Certificate at the office or agency appointed by the
Securities Administrator for that purpose and designated in such notice.

                  No transfer of this Certificate shall be made unless the
transfer is made pursuant to an effective registration statement under the
Securities Act of 1933, as amended (the "1933 Act"), and an effective
registration or qualification under applicable state securities laws, or is made
in a transaction that does not require such registration or qualification. In
the event that such a transfer of this Certificate is to be made without
registration or qualification, the Securities Administrator shall require
receipt of (i) if such transfer is purportedly being made in reliance upon Rule
144A under the 1933 Act, written certifications from the Holder of the
Certificate desiring to effect the transfer, and

                                      A-6-4

<PAGE>

from such Holder's prospective transferee, substantially in the forms attached
to the Agreement as Exhibit D and either Exhibit E or Exhibit F, as applicable,
and (ii) in all other cases, an Opinion of Counsel satisfactory to it that such
transfer may be made without such registration or qualification (which Opinion
of Counsel shall not be an expense of the Trust Fund or of the Depositor, the
Trustee, the Securities Administrator or the Master Servicer in their respective
capacities as such), together with copies of the written certification(s) of the
Holder of the Certificate desiring to effect the transfer and/or such Holder's
prospective transferee upon which such Opinion of Counsel is based. None of the
Depositor, the Securities Administrator or the Trustee is obligated to register
or qualify the Class of Certificates specified on the face hereof under the 1933
Act or any other securities law or to take any action not otherwise required
under the Agreement to permit the transfer of such Certificates without
registration or qualification. Any Holder desiring to effect a transfer of this
Certificate shall be required to indemnify the Trustee, the Securities
Administrator, the Depositor, the Seller and the Master Servicer against any
liability that may result if the transfer is not so exempt or is not made in
accordance with such federal and state laws.

                  No transfer of this Class R Certificate will be made unless
the Depositor, the Trustee and the Securities Administrator have received either
(i) an opinion of counsel under Section 5.3(d) of the Agreement stating, among
other things, that the transferee's acquisition of a Class R Certificate is
permissible under applicable law, will not constitute or result in a non-exempt
prohibited transaction under Section 406 of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA") or Section 4975 of the Internal
Revenue Code (the "Code") and will not subject the Depositor, the Trustee, the
Securities Administrator or the Master Servicer to any obligation or liability
in addition to those undertaken in the Agreement or (ii) a representation
letter, in the form as described by the Agreement, stating that the transferee
is not an employee benefit or other plan subject to the prohibited transaction
provisions of ERISA or Section 4975 of the Code (a "Plan"), or any other person
(including an investment manager, a named fiduciary or a trustee of any Plan)
acting, directly or indirectly, on behalf of or purchasing any Certificate with
"plan assets" of any Plan.

                  This Certificate is one of a duly authorized issue of
Certificates designated as set forth on the face hereof (the "Certificates").
The Certificates, in the aggregate, evidence the entire beneficial ownership
interest in the Trust Fund formed pursuant to the Agreement.

                  The Certificateholder, by its acceptance of this Certificate,
agrees that it will look solely to the Trust Fund for payment hereunder and that
neither the Securities Administrator nor the Trustee is liable to the
Certificateholders for any amount payable under this Certificate or the
Agreement or, except as expressly provided in the Agreement, subject to any
liability under the Agreement.

                  This Certificate does not purport to summarize the Agreement
and reference is made to the Agreement for the interests, rights and limitations
of rights, benefits, obligations and duties evidenced hereby, and the rights,
duties and immunities of the Securities Administrator.

                  The Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and
obligations of the Depositor and the rights of the Certificateholders under the
Agreement from time to time by the parties thereto with the consent of the
Holders of Certificates affected thereby evidencing not less than 66-2/3% of the
Voting Rights. Any such consent by the Holder of this Certificate shall be
conclusive and binding on such Holder and upon all future Holders of this
Certificate and of any Certificate issued upon the transfer hereof

                                      A-6-5

<PAGE>

or in lieu hereof whether or not notation of such consent is made upon this
Certificate. The Agreement also permits the amendment thereof, in certain
limited circumstances, without the consent of the Holders of any of the
Certificates.

                  As provided in the Agreement and subject to certain
limitations therein set forth, the transfer of this Certificate is registrable
with the Securities Administrator upon surrender of this Certificate for
registration of transfer at the offices or agencies maintained by the Securities
Administrator for such purposes, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Securities Administrator duly
executed by the Holder hereof or such Holder's attorney duly authorized in
writing, and thereupon one or more new Certificates in authorized denominations
representing a like aggregate Percentage Interest will be issued to the
designated transferee.

                  The Certificates are issuable only as registered Certificates
without coupons in the Classes and denominations specified in the Agreement. As
provided in the Agreement and subject to certain limitations therein set forth,
this Certificate is exchangeable for one or more new Certificates evidencing the
same Class and in the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

                  No service charge will be made to the Certificateholders for
any such registration of transfer, but the Securities Administrator may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith. The Depositor, the Master Servicer, the
Securities Administrator, the Trustee and any agent of any of them may treat the
Person in whose name this Certificate is registered as the owner hereof for all
purposes, and none of Depositor, the Master Servicer, the Securities
Administrator, the Trustee or any such agent shall be affected by notice to the
contrary.

                  The obligations created by the Agreement and the Trust Fund
created thereby (other than the obligations to make payments to
Certificateholders with respect to the termination of the Agreement) shall
terminate upon the remittance of all funds due under the Agreement, coinciding
with or following the earlier to occur of (i) the maturity or other liquidation
(or Advance with respect thereto) of the last Mortgage Loan remaining in the
Trust Fund and disposition of all property acquired upon foreclosure or deed in
lieu of foreclosure of any Mortgage Loan or (ii) the optional repurchase by the
party named in the Agreement of all the Mortgage Loans and other assets of the
Trust Fund in accordance with the terms of the Agreement. Such optional
repurchase may be made only on or after the Distribution Date on which the
aggregate Scheduled Principal Balance of the Mortgage Loans is less than the
percentage of the aggregate Scheduled Principal Balance specified in the
Agreement of the Mortgage Loans at the Cut-Off Date. The exercise of such right
will effect the early retirement of the Certificates. In no event, however, will
the Trust Fund created by the Agreement continue beyond the expiration of 21
years after the death of certain persons identified in the Agreement.

                  Unless this Certificate has been countersigned by an
authorized signatory of the Securities Administrator by manual signature, this
Certificate shall not be entitled to any benefit under the Agreement, or be
valid for any purpose.

                                      A-6-6

<PAGE>

                  IN WITNESS WHEREOF, the Securities Administrator has caused
this Certificate to be duly executed.

Dated: September 30, 2003

                                        WELLS FARGO BANK MINNESOTA,
                                        NATIONAL ASSOCIATION
                                        as Securities Administrator

                                        By:_____________________________________
                                                     Authorized Officer

                          CERTIFICATE OF AUTHENTICATION
                          -----------------------------

                  This is one of the Class R Certificates referred to in the
within-mentioned Agreement.

                                        WELLS FARGO BANK MINNESOTA,
                                        NATIONAL ASSOCIATION
                                        as Securities Administrator

                                        By:_____________________________________
                                                    Authorized Signatory

<PAGE>

                                   ASSIGNMENT
                                   ----------

                  FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s)
and transfer(s) unto __________________________________ (Please print or
typewrite name and address including postal zip code of assignee) a Percentage
Interest evidenced by the within Mortgage Pass- Through Certificate and hereby
authorizes the transfer of registration of such interest to assignee on the
Certificate Register of the Trust Fund.

                  I (We) further direct the Securities Administrator to issue a
new Certificate of a like denomination and Class, to the above named assignee
and deliver such Certificate to the following address:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________

Dated:                          ________________________________________________
                                    Signature by or on behalf of assignor

                                                        ________________________
                                                          Signature Guaranteed

                            DISTRIBUTION INSTRUCTIONS

                  The assignee should include the following for purposes of
distribution:

                  Distributions shall be made, by wire transfer or otherwise, in
immediately available funds to _________________________________ for the account
of _________________________ account number _____________, or, if mailed by
check, to ______________________________. Applicable statements should be mailed
to _____________________________________________.

                  This information is provided by __________________, the
assignee named above, or ________________________, as its agent.

<PAGE>

                                                                       EXHIBIT B

                                  LOAN SCHEDULE
                                  -------------

                    [AVAILABLE UPON REQUEST FROM DEPOSITOR]

<PAGE>

                                                                       EXHIBIT C

                           FORM OF TRANSFER AFFIDAVIT

                                              Affidavit pursuant to Section
                                              860E(e)(4) of the Internal Revenue
                                              Code of 1986, as amended, and for
                                              other purposes

STATE OF                   )
                           )ss:
COUNTY OF                  )

         [NAME OF OFFICER], being first duly sworn, deposes and says:

         1. That he/she is [Title of Officer] of [Name of Investor] (the
"Investor"), a [savings institution] [corporation] duly organized and existing
under the laws of [the State of _____] [the United States], on behalf of which
he makes this affidavit.

         2. That (i) the Investor is not a "disqualified organization" as
defined in Section 860E(e)(5) of the Internal Revenue Code of 1986, as amended
(the "Code"), and will not be a disqualified organization as of [Closing Date]
[date of purchase]; (ii) it is not acquiring the Deutsche Alt-A Securities, Inc.
Mortgage Loan Trust, Series 2003-2XS Mortgage Pass-Through Certificates, Class R
Certificates (the "Residual Certificates") for the account of a disqualified
organization; (iii) it consents to any amendment of the Pooling and Servicing
Agreement that shall be deemed necessary by Deutsche Alt-A Securities, Inc.
(upon advice of counsel) to constitute a reasonable arrangement to ensure that
the Residual Certificates will not be owned directly or indirectly by a
disqualified organization; and (iv) it will not transfer such Residual
Certificates unless (a) it has received from the transferee an affidavit in
substantially the same form as this affidavit containing these same four
representations and (b) as of the time of the transfer, it does not have actual
knowledge that such affidavit is false.

         3. That the Investor is one of the following: (i) a citizen or resident
of the United States, (ii) a corporation or partnership (including an entity
treated as a corporation or partnership for federal income tax purposes) created
or organized in, or under the laws of, the United States or any state thereof or
the District of Columbia (except, in the case of a partnership, to the extent
provided in regulations), provided that no partnership or other entity treated
as a partnership for United States federal income tax purposes shall be treated
as a United States Person unless all persons that own an interest in such
partnership either directly or through any entity that is not a corporation for
United States federal income tax purposes are United States Persons, (iii) an
estate whose income is subject to United States federal income tax regardless of
its source, or (iv) a trust other than a "foreign trust," as defined in Section
7701 (a)(31) of the Code.

         4. That the Investor's taxpayer identification number is
______________________.

         5. That no purpose of the acquisition of the Residual Certificates is
to avoid or impede the assessment or collection of tax.

<PAGE>

         6. That the Investor understands that, as the holder of the Residual
Certificates, the Investor may incur tax liabilities in excess of any cash flows
generated by such Residual Certificates.

         7. That the Investor intends to pay taxes associated with holding the
Residual Certificates as they become due.

         IN WITNESS WHEREOF, the Investor has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
[Title of Officer] this ____ day of _________, 20__.

                                            [NAME OF INVESTOR]

                                            By:_________________________________
                                               [Name of Officer]
                                               [Title of Officer]
                                               [Address of Investor for receipt
                                               of distributions]

                                               Address of Investor
                                               for receipt of tax
                                               information:

                                       C-2

<PAGE>

         Personally appeared before me the above-named [Name of Officer], known
or proved to me to be the same person who executed the foregoing instrument and
to be the [Title of Officer] of the Investor, and acknowledged to me that he/she
executed the same as his/her free act and deed and the free act and deed of the
Investor.

         Subscribed and sworn before me this ___ day of _________, 20___.

NOTARY PUBLIC

COUNTY OF

STATE OF

My commission expires the ___ day of ___________________, 20___.

                                       C-3

<PAGE>

                                                                       EXHIBIT D

                         FORM OF TRANSFEROR CERTIFICATE

                              ______________,200___

HSBC Bank USA
452 Fifth Avenue
New York, New York 10018
Attention: Deutsche Alt-A Securities Trust 2003-2XS

Wells Fargo Bank Minnesota, National Association
Sixth Street & Marquette Avenue
Minneapolis, Minnesota 55479
Attention:     Deutsche Alt-A Securities, Inc., 2003-2XS

Deutsche Alt-A Securities, Inc.
60 Wall Street
New York, New York 10005
Attention:     Deutsche Alt-A Securities, Inc.
               Alternative Loan Trust, Series 2003-2XS

         Re:      Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, SERIES
                  2003-2XS, CLASS [CE][P][R] Mortgage Pass-Through Certificates
                  -------------------------------------------------------------

Ladies and Gentlemen:

         In connection with the sale by ___________ (the "Seller") to ________
(the "Purchaser") of $_________ Initial Certificate Principal Balance of Series
2003-2XS Mortgage Pass-Through Certificates, Class _____ (the "Certificates"),
issued pursuant to the Pooling and Servicing Agreement (the "Pooling and
Servicing Agreement"), dated as of September 1, 2003 among Deutsche Alt-A
Securities, Inc., as depositor (the "Depositor"), Wells Fargo Bank Minnesota,
National Association, as master servicer and securities administrator, and HSBC
Bank USA, as trustee (the "Trustee"). The Seller hereby certifies, represents
and warrants to, a covenants with, the Depositor, the Trustee and the Securities
Administrator that:

                  Neither the Seller nor anyone acting on its behalf has (a)
offered, pledged, sold, disposed of or otherwise transferred any Certificate,
any interest in any Certificate or any other similar security to any person in
any manner, (b) has solicited any offer to buy or to accept a pledge,
disposition or other transfer of any Certificate, any interest in any
Certificate or any other similar security from any person in any manner, (c) has
otherwise approached or negotiated with respect to any Certificate, any interest
in any Certificate or any other similar security with any person in any manner,
(d) has made any general solicitation by means of general advertising or in any
other manner, or (e) has taken any other action, that (as to any of (a) through
(e) above) would constitute a distribution of the Certificates under the
Securities Act of 1933 (the "Act"), that would render the disposition of any
Certificate a violation of Section 5 of the Act or any state securities law, or
that would require registration or qualification pursuant thereto. The Seller
will not act in any manner

<PAGE>

set forth in the foregoing sentence with respect to any Certificate. The Seller
has not and will not sell or otherwise transfer any of the Certificates, except
in compliance with the provisions of the Pooling and Servicing Agreement.

                                               Very truly yours,

                                               ______________________________
                                               (Seller)

                                               By:___________________________

                                               Name:_________________________

                                               Title:________________________

                                       D-2

<PAGE>

                                                                       EXHIBIT E

             FORM OF INVESTOR REPRESENTATION LETTER (NON-RULE 144A)

                                ___________,200__

HSBC Bank USA
452 Fifth Avenue
New York, New York 10018
Attention: Deutsche Alt-A Securities Trust 2003-2XS

Wells Fargo Bank Minnesota, National Association
Sixth Street & Marquette Avenue
Minneapolis, Minnesota 55479
Attention:    Deutsche Alt-A Securities, Inc., 2003-2XS

Deutsche Alt-A Securities, Inc.
60 Wall Street
New York, New York 10005
Attention:    Deutsche Alt-A Securities, Inc.
              Alternative Loan Trust, Series 2003-2XS

         Re:      Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, SERIES
                  2003-2XS, Class [CE][P][R] Mortgage Pass-Through Certificates
                  -------------------------------------------------------------

Ladies and Gentlemen:

         ______________ (the "Purchaser") intends to purchase from
______________ (the "Seller") $_________ Initial Certificate Principal Balance
of Series 2003-2XS Mortgage Pass-Through Certificates, Class _____ (the
"Certificates"), issued pursuant to the Pooling and Servicing Agreement (the
"Pooling and Servicing Agreement"), dated as of September 1, 2003 among Deutsche
Alt-A Securities, Inc., as depositor (the "Depositor"), Wells Fargo Bank
Minnesota, National Association, as master servicer and securities
administrator, and HSBC Bank USA, as trustee (the "Trustee"). All terms used
herein and not otherwise defined shall have the meanings set forth in the
Pooling and Servicing Agreement. The Purchaser hereby certifies, represents and
warrants to, and covenants with, the Depositor, the Securities Administrator and
the Trustee that:

                           1. The Purchaser understands that (a) the
                  Certificates have not been and will not be registered or
                  qualified under the Securities Act of 1933, as amended (the
                  "Act") or any state securities law, (b) the Depositor is not
                  required to so register or qualify the Certificates, (c) the
                  Certificates may be resold only if registered and qualified
                  pursuant to the provisions of the Act or any state securities
                  law, or if an exemption from such registration and
                  qualification is available, (d) the Pooling and Servicing
                  Agreement contains restrictions regarding the transfer of the
                  Certificates and (e) the Certificates will bear a legend to
                  the foregoing effect.

                           2. The Purchaser is acquiring the Certificates for
                  its own account for investment only and not with a view to or
                  for sale in connection with any distribution

                                       E-1

<PAGE>

                  thereof in any manner that would violate the Act or any
                  applicable state securities laws.

                           3. The Purchaser is (a) a substantial, sophisticated
                  institutional investor having such knowledge and experience in
                  financial and business matters, and, in particular, in such
                  matters related to securities similar to the Certificates,
                  such that it is capable of evaluating the merits and risks of
                  investment in the Certificates, (b) able to bear the economic
                  risks of such an investment and (c) an "accredited investor"
                  within the meaning of Rule 501 (a) promulgated pursuant to the
                  Act.

                           4. The Purchaser has been furnished with, and has had
                  an opportunity to review (a) [a copy of the Private Placement
                  Memorandum, dated ______, 2003, relating to the Certificates
                  (b)] a copy of the Pooling and Servicing Agreement and [(b)]
                  [(c)] such other information concerning the Certificates, the
                  Mortgage Loans and the Depositor as has been requested by the
                  Purchaser from the Depositor or the Seller and is relevant to
                  the Purchaser's decision to purchase the Certificates. The
                  Purchaser has had any questions arising from such review
                  answered by the Depositor or the Seller to the satisfaction of
                  the Purchaser. [If the Purchaser did not purchase the
                  Certificates from the Seller in connection with the initial
                  distribution of the Certificates and was provided with a copy
                  of the Private Placement Memorandum (the "Memorandum")
                  relating to the original sale (the "Original Sale") of the
                  Certificates by the Depositor, the Purchaser acknowledges that
                  such Memorandum was provided to it by the Seller, that the
                  Memorandum was prepared by the Depositor solely for use in
                  connection with the Original Sale and the Depositor did not
                  participate in or facilitate in any way the purchase of the
                  Certificates by the Purchaser from the Seller, and the
                  Purchaser agrees that it will look solely to the Seller and
                  not to the Depositor with respect to any damage, liability,
                  claim or expense arising out of, resulting from or in
                  connection with (a) error or omission, or alleged error or
                  omission, contained in the Memorandum, or (b) any information,
                  development or event arising after the date of the
                  Memorandum.]

                           5. The Purchaser has not and will not nor has it
                  authorized or will it authorize any person to (a) offer,
                  pledge, sell, dispose of or otherwise transfer any
                  Certificate, any interest in any Certificate or any other
                  similar security to any person in any manner, (b) solicit any
                  offer to buy or to accept a pledge, disposition of other
                  transfer of any Certificate, any interest in any Certificate
                  or any other similar security from any person in any manner,
                  (c) otherwise approach or negotiate with respect to any
                  Certificate, any interest in any Certificate or any other
                  similar security with any person in any manner, (d) make any
                  general solicitation by means of general advertising or in any
                  other manner or (e) take any other action, that (as to any of
                  (a) through (e) above) would constitute a distribution of any
                  Certificate under the Act, that would render the disposition
                  of any Certificate a violation of Section 5 of the Act or any
                  state securities law, or that would require registration or
                  qualification pursuant thereto. The Purchaser will not sell or
                  otherwise transfer any of the Certificates, except in
                  compliance with the provisions of the Pooling and Servicing
                  Agreement.

                                       E-2

<PAGE>

                                               Very truly yours,

                                               ______________________________
                                               (Purchaser)

                                               By:___________________________

                                               Name:_________________________

                         Title:________________________

                                       E-3

<PAGE>

                                                                       EXHIBIT F

                       FORM OF RULE 144A INVESTMENT LETTER

                                                [Date]

HSBC Bank USA
452 Fifth Avenue
New York, New York 10018
Attention: Deutsche Alt-A Securities Trust 2003-2XS

Wells Fargo Bank Minnesota, National Association
Sixth Street & Marquette Avenue
Minneapolis, Minnesota 55479
Attention:        Deutsche Alt-A Securities, Inc., 2003-2XS

Deutsche Alt-A Securities, Inc.
60 Wall Street
New York, New York 10005
Attention:        Deutsche Alt-A Securities, Inc.
                  Alternative Loan Trust, Series 2003-2XS

         Re:      Deutsche Alt-A Securities, Inc. Mortgage Loan Trust,
                  Series 2003-2XS Mortgage Pass-Through Certificates, (the
                  "Certificates"), Including the Class CE, P and R Certificates
                  (The "Privately Offered Certificates")
                  -------------------------------------------------------------

Dear Ladies and Gentlemen:

         In connection with our purchase of Privately Offered Certificates, we
confirm that:

                  (i)      we understand that the Privately Offered Certificates
                           are not being registered under the Securities Act of
                           1933, as amended (the "Act") or any applicable state
                           securities or "Blue Sky" laws, and are being sold to
                           us in a transaction that is exempt from the
                           registration requirements of such laws;

                  (ii)     any information we desired concerning the
                           Certificates, including the Privately Offered
                           Certificates, the trust in which the Certificates
                           represent the entire beneficial ownership interest
                           (the "Trust") or any other matter we deemed relevant
                           to our decision to purchase Privately Offered
                           Certificates has been made available to us;

                  (iii)    we are able to bear the economic risk of investment
                           in Privately Offered Certificates; we are an
                           institutional "accredited investor" as defined in
                           Section 501(a) of Regulation D promulgated under the
                           Act and a sophisticated institutional investor;

                  (iv)     we are acquiring Privately Offered Certificates for
                           our own account, not as nominee for any other person,
                           and not with a present view to any distribution or
                           other disposition of the Privately Offered
                           Certificates;

                                       F-1

<PAGE>

                  (v)      we agree the Privately Offered Certificates must be
                           held indefinitely by us (and may not be sold,
                           pledged, hypothecated or in any way disposed of)
                           unless subsequently registered under the Act and any
                           applicable state securities or "Blue Sky" laws or an
                           exemption from the registration requirements of the
                           Act and any applicable state securities or "Blue Sky"
                           laws is available;

                  (vi)     we agree that in the event that at some future time
                           we wish to dispose of or exchange any of the
                           Privately Offered Certificates (such disposition or
                           exchange not being currently foreseen or
                           contemplated), we will not transfer or exchange any
                           of the Privately Offered Certificates unless:

                                    (A) (1) the sale is to an Eligible Purchaser
                           (as defined below), (2) if required by the Pooling
                           and Servicing Agreement (as defined below) a letter
                           to substantially the same effect as either this
                           letter or, if the Eligible Purchaser is a Qualified
                           Institutional Buyer as defined under Rule 144A of the
                           Act, the Rule 144A and Related Matters Certificate in
                           the form attached to the Pooling and Servicing
                           Agreement (as defined below) (or such other
                           documentation as may be acceptable to the Securities
                           Administrator) is executed promptly by the purchaser
                           and delivered to the addressees hereof and (3) all
                           offers or solicitations in connection with the sale,
                           whether directly or through any agent acting on our
                           behalf, are limited only to Eligible Purchasers and
                           are not made by means of any form of general
                           solicitation or general advertising whatsoever; and

                                    (B) if the Privately Offered Certificate is
                           not registered under the Act (as to which we
                           acknowledge you have no obligation), the Privately
                           Offered Certificate is sold in a transaction that
                           does not require registration under the Act and any
                           applicable state securities or "blue sky" laws and,
                           if Wells Fargo Bank Minnesota, National Association
                           (the "Securities Administrator") so requests, a
                           satisfactory Opinion of Counsel is furnished to such
                           effect, which Opinion of Counsel shall be an expense
                           of the transferor or the transferee;

                  (vii)    we agree to be bound by all of the terms (including
                           those relating to restrictions on transfer) of the
                           Pooling and Servicing, pursuant to which the Trust
                           was formed; we have reviewed carefully and understand
                           the terms of the Pooling and Servicing Agreement;

                  (viii)   we either: (i) are not acquiring the Privately
                           Offered Certificate directly or indirectly by, or on
                           behalf of, an employee benefit plan or other
                           retirement arrangement which is subject to Title I of
                           the Employee Retirement Income Security Act of 1974,
                           as amended ("ERISA"), and/or section 4975 of the
                           Internal Revenue Code of 1986, as amended (the
                           "Code"), or (ii) are providing an opinion of counsel
                           to the effect that the proposed transfer and holding
                           of a Privately Offered Certificate: (I) is
                           permissible under applicable law, (II) will not
                           result in any non-exempt prohibited transaction under

                                       F-2

<PAGE>

                           Section 406 of ERISA or Section 4975 of the Code and
                           (III) will not subject the Depositor, the Trustee,
                           the Master Servicer or the Securities Administrator
                           to any obligation or liability in addition to those
                           undertaken in the Agreement.

                  (ix)     We understand that each of the Class CE, P and R
                           Certificates bears, and will continue to bear, a
                           legend to substantiate the following effect: "THIS
                           CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A
                           NON-UNITED STATES PERSON OR A DISQUALIFIED
                           ORGANIZATION (AS DEFINED BELOW). SOLELY FOR U.S.
                           FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
                           "RESIDUAL INTEREST" IN A "REAL ESTATE MORTGAGE
                           INVESTMENT CONDUIT" AS THOSE TERMS ARE DEFINED,
                           RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE
                           INTERNAL REVENUE CODE OF 1986 (THE "CODE"). ANY
                           RESALE, TRANSFER OR OTHER DISPOSITION OF THIS
                           CERTIFICATE MAY BE MADE ONLY IN ACCORDANCE WITH THE
                           PROVISIONS OF SECTION 5.3 OF THE AGREEMENT REFERRED
                           TO HEREIN. NO TRANSFER OF THIS CERTIFICATE MAY BE
                           MADE TO ANY PERSON, UNLESS THE TRANSFEREE PROVIDES
                           EITHER A CERTIFICATION PURSUANT TO SECTION 5.3(d) OF
                           THE AGREEMENT OR AN OPINION OF COUNSEL UNDER SECTION
                           5.3(d) OF THE AGREEMENT THAT THE PURCHASE OF THIS
                           CERTIFICATE IS PERMISSIBLE UNDER APPLICABLE LAW, WILL
                           NOT CONSTITUTE OR RESULT IN A NON-EXEMPT PROHIBITED
                           TRANSACTION UNDER SECTION 406 OF THE EMPLOYEE
                           RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
                           ("ERISA"), OR SECTION 4975 OF THE CODE AND WILL NOT
                           SUBJECT THE MASTER SERVICER, THE TRUSTEE, THE
                           DEPOSITOR OR THE SECURITIES ADMINISTRATOR TO ANY
                           OBLIGATION OR LIABILITY IN ADDITION TO THOSE
                           UNDERTAKEN IN THE AGREEMENT. ANY RESALE, TRANSFER OR
                           OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE
                           ONLY IF THE PROPOSED TRANSFEREE PROVIDES (I) AN
                           AFFIDAVIT TO THE TRUSTEE THAT (A) SUCH TRANSFEREE IS
                           NOT (1) THE UNITED STATES OR ANY POSSESSION THEREOF,
                           ANY STATE OR POLITICAL SUBDIVISION THEREOF, ANY
                           FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION,
                           OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE
                           FOREGOING, (2) ANY ORGANIZATION (OTHER THAN A
                           COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE)
                           THAT IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF
                           THE CODE UNLESS SUCH ORGANIZATION IS SUBJECT TO THE
                           TAX IMPOSED BY SECTION 511 OF THE CODE, (3) ANY
                           ORGANIZATION DESCRIBED IN SECTION 1381(a)(2)(C) OF
                           THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING
                           CLAUSES (1), (2) OR (3) SHALL HEREINAFTER BE REFERRED
                           TO AS A "DISQUALIFIED ORGANIZATION") OR (4) AN AGENT
                           OF A DISQUALIFIED

                                       F-3

<PAGE>

                           ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS
                           TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX, AND
                           (II) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL
                           CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE
                           PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION
                           IN THE CERTIFICATE REGISTER OF ANY TRANSFER, SALE OR
                           OTHER DISPOSITION OF THIS CERTIFICATE TO A
                           DISQUALIFIED ORGANIZATION OR AN AGENT OF A
                           DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE
                           DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER
                           AND SUCH PERSON SHALL NOT BE DEEMED TO BE A
                           CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER,
                           INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
                           DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF
                           THIS CERTIFICATE BY ACCEPTANCE HEREOF SHALL BE DEEMED
                           TO HAVE CONSENTED TO THE PROVISIONS OF THIS PARAGRAPH
                           AND THE PROVISIONS OF SECTION 5.3(d) OF THE AGREEMENT
                           REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED
                           ORGANIZATION IS PROHIBITED FROM ACQUIRING BENEFICIAL
                           OWNERSHIP OF THIS CERTIFICATE. THIS CERTIFICATE HAS
                           NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
                           SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
                           LAWS OF ANY STATE AND MAY NOT BE RESOLD OR
                           TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH
                           ACT AND LAWS OR IS SOLD OR TRANSFERRED IN
                           TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER
                           SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS
                           TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF
                           SECTION 5.3 OF THE AGREEMENT.."

                  "ELIGIBLE PURCHASER" means a corporation, partnership or other
entity which we have reasonable grounds to believe and do believe (i) can make
representations with respect to itself to substantially the same effect as the
representations set forth herein, and (ii) is either a Qualified Institutional
Buyer as defined under Rule 144A of the Act or an institutional "Accredited
Investor" as defined under Rule 501 of the Act.

                  Terms not otherwise defined herein shall have the meanings
assigned to them in the Pooling and Servicing Agreement, dated as of September
1, 2003, between Deutsche Alt-A Securities, Inc., as depositor, Wells Fargo Bank
Minnesota, National Association, as master servicer and securities
administrator, and HSBC Bank USA, as Trustee (the "Agreement").

                  If the Purchaser proposes that its Certificates be registered
in the name of a nominee on its behalf, the Purchaser has identified such
nominee below, and has caused such nominee to complete the Nominee
Acknowledgment at the end of this letter.

Name of Nominee (if any):__________________

                                       F-4

<PAGE>

                  IN WITNESS WHEREOF, this document has been executed by the
undersigned who is duly authorized to do so on behalf of the undersigned
Eligible Purchaser on the ___ day of ________, 20___.

                                              Very truly yours,

                                              [PURCHASER]

                                              By:_______________________________
                                                       (Authorized Officer)

                                              [By:______________________________
                                                       Attorney-in-fact]

<PAGE>

                             Nominee Acknowledgment

         The undersigned hereby acknowledges and agrees that as to the
Certificates being registered in its name, the sole beneficial owner thereof is
and shall be the Purchaser identified above, for whom the undersigned is acting
as nominee.

                                             [NAME OF NOMINEE]

                                             By:________________________________
                                                      (Authorized Officer)

                                             [By:_______________________________
                                                      Attorney-in-fact]

<PAGE>

                                                                       EXHIBIT G
                         FORM OF BENEFIT PLAN AFFIDAVIT
[Date]

HSBC Bank USA
452 Fifth Avenue
New York, New York 10018
Attention: Deutsche Alt-A Securities Trust 2003-2XS

Wells Fargo Bank Minnesota, National Association
Sixth Street & Marquette Avenue
Minneapolis, Minnesota 55479
Attention:        Deutsche Alt-A Securities, Inc., 2003-2XS

Deutsche Alt-A Securities, Inc.
60 Wall Street
New York, New York 10005
Attention:        Deutsche Alt-A Securities, Inc.
                  Alternative Loan Trust, Series 2003-2XS

         Re:      Deutsche Alt-A Securities, Inc. Mortgage Loan Trust, Series
                  2003-2XS Mortgage Pass-through Certificates, (the "Trust")
                  Class CE, P, and R Certificates (the "Purchased Certificates")
                  --------------------------------------------------------------

Under penalties of perjury, I, ___________________, declare that, to the best of
my knowledge and belief, the following representations are true, correct and
complete; and

                  1. That I am the _________ of _________________ (the
"Purchaser"), whose taxpayer identification number is ___________, and on behalf
of which I have the authority to make this affidavit.

                  2. That the Purchaser is acquiring a Purchased Certificate
representing an interest in the Trust.

                  3. The Purchaser either (a) is not an employee benefit plan
subject to the Employee Retirement Income Security Act of 1974, as amended
("ERISA") or a "plan" described in Section 4975 of the Internal Revenue Code of
1986, as amended (the "Code") or any entity deemed to hold plan assets of any of
the foregoing by reason of a plan's investment in such entity (a "Plan") or (b)
has provided the opinion of counsel required by Section 5.3(d) of the Agreement.

                                       G-1

<PAGE>

IN WITNESS WHEREOF, the Purchaser has caused this instrument to be duly executed
on its behalf, by its duly authorized officer this day of _____________, 20 .

                                        [Purchaser]
                                        By:_______________________________
                                        Its:

                                       G-2<PAGE>

                                                                    EXHIBIT 10.1

                            ASSET PURCHASE AGREEMENT

                                     BETWEEN

                               HORIZON PROPANE LLC

                                       AND

                             AMERIGAS PROPANE, L.P.

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

                                 October 1, 2003

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                   Page
                                                                                                   ----
<S>                                                                                                <C>
ARTICLE I DEFINITIONS..........................................................................      1

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

     Section 1.2   Construction................................................................      6

ARTICLE II PURCHASE AND SALE...................................................................      6

     Section 2.1   Purchase and Sale of Assets.................................................      6

     Section 2.2   Excluded Assets.............................................................      8

     Section 2.3   Assumed Liabilities.........................................................      9

     Section 2.4   Excluded Liabilities........................................................      9

ARTICLE III PURCHASE PRICE AND MANNER OF PAYMENT...............................................     10

     Section 3.1   Net Purchase Price Amount; Adjustments......................................     10

     Section 3.2   Estimated Net Working Capital; Closing Date Adjustment......................     10

     Section 3.3   Payment of Estimated Cash Purchase Price....................................     11

     Section 3.4   Post-Closing Working Capital Calculation....................................     12

     Section 3.5   Allocation of Net Purchase Price............................................     13

     Section 3.6   Taxes, Title Commitment and Insurance.......................................     14

ARTICLE IV THE CLOSING.........................................................................     14

     Section 4.1   Time and Place of Closing...................................................     14

     Section 4.2   Deliveries by Seller........................................................     14

     Section 4.3   Deliveries by Buyer.........................................................     16

ARTICLE V REPRESENTATIONS AND WARRANTIES OF SELLER.............................................     17

     Section 5.1   Organization; Qualification.................................................     17

     Section 5.2   Authority Relative to this Agreement........................................     17

     Section 5.3   Consents and Approvals......................................................     17

     Section 5.4   No Violations...............................................................     18

     Section 5.5   No Default; Compliance with Applicable Laws; Permits........................     18

     Section 5.6   Books and Records...........................................................     18

     Section 5.7   Conduct of Business.........................................................     19

     Section 5.8   No Undisclosed Liabilities..................................................     19

     Section 5.9   Litigation..................................................................     19

     Section 5.10  Environmental Compliance....................................................     19
</TABLE>

                                     - i -

<PAGE>

<TABLE>
<CAPTION>
                                                                                                   Page
                                                                                                   ----
<S>                                                                                                <C>
     Section 5.11  Intellectual Property.......................................................     20

     Section 5.12  Brokers.....................................................................     21

     Section 5.13  Taxes.......................................................................     21

     Section 5.14  Financial Statements........................................................     22

     Section 5.15  Title to Property...........................................................     22

     Section 5.16  Real Property Leases........................................................     22

     Section 5.17  Owned Real Property.........................................................     23

     Section 5.18  Real Property...............................................................     23

     Section 5.19  Accuracy....................................................................     24

     Section 5.20  Disclosure..................................................................     24

     Section 5.21  Active Customers............................................................     24

     Section 5.22  Customer Deposits, Advances and Credits.....................................     24

     Section 5.23  Limited Warranties..........................................................     24

ARTICLE VI REPRESENTATIONS AND WARRANTIES OF BUYER.............................................     25

     Section 6.1   Organization................................................................     25

     Section 6.2   Authority Relative to this Agreement........................................     25

     Section 6.3   Brokers.....................................................................     25

ARTICLE VII COVENANTS OF THE PARTIES...........................................................     25

     Section 7.1   Access to Information; Maintenance of Records...............................     25

     Section 7.2   Expenses....................................................................     26

     Section 7.3   Further Assurances..........................................................     27

     Section 7.4   Cooperation on Tax Matters..................................................     27

     Section 7.5   Employees...................................................................     27

     Section 7.6   Name Change.................................................................     28

     Section 7.7   Conduct of Business by Seller...............................................     28

     Section 7.8   Insurance...................................................................     29

     Section 7.9   Public Announcement.........................................................     30

     Section 7.10  Regulatory Filings..........................................................     30

     Section 7.11  Rejection and Assumption of Contracts.......................................     30

     Section 7.12  Utilities...................................................................     30

     Section 7.13  Access to Real Property.....................................................     30

     Section 7.14  Service of Customers........................................................     31
</TABLE>

                                     - ii -

<PAGE>

<TABLE>
<CAPTION>
                                                                                                   Page
                                                                                                   ----
<S>                                                                                                <C>
ARTICLE VIII CONDITIONS TO CLOSING.............................................................     31

     Section 8.1   Conditions to Obligations of Buyer..........................................     31

     Section 8.2   Conditions to Obligations of Seller.........................................     31

ARTICLE IX TERMINATION AND ABANDONMENT.........................................................     32

     Section 9.1   Termination.................................................................     32

     Section 9.2   Procedure and Effect of Termination.........................................     32

ARTICLE X INDEMNIFICATION......................................................................     33

     Section 10.1  Survival of Representations, Warranties and Agreements......................     33

     Section 10.2  Limitations on Indemnification..............................................     33

     Section 10.3  Indemnification.............................................................     35

     Section 10.4  Defense of Claims...........................................................     36

ARTICLE XI MISCELLANEOUS PROVISIONS............................................................     38

     Section 11.1  Amendment and Modification..................................................     38

     Section 11.2  Waiver of Compliance; Consents..............................................     38

     Section 11.3  Survival....................................................................     38

     Section 11.4  Notices.....................................................................     38

     Section 11.5  Binding Effect; Assignment..................................................     39

     Section 11.6  Third-Party Beneficiaries...................................................     39

     Section 11.7  Severability................................................................     39

     Section 11.8  Governing Law...............................................................     40

     Section 11.9  Submission to Jurisdiction..................................................     40

     Section 11.10 Counterparts................................................................     40

     Section 11.11 Incorporation...............................................................     40

     Section 11.12 Entire Agreement............................................................     40

     Section 11.13 Headings....................................................................     40

     Section 11.14 Remedies....................................................................     40

     Section 11.15 Agreement Not to Compete....................................................     41
</TABLE>

                                    - iii -

<PAGE>

                         LIST OF EXHIBITS AND SCHEDULES

<TABLE>
<CAPTION>
Exhibits:
--------
<S>                  <C>
Exhibit A            Form of Assumption Agreement
Exhibit B            Form of Bill of Sale
Exhibit C            Form of Deed
Exhibit D            Form of Escrow Agreement
Exhibit E            Form of Intellectual Property Assignment
Exhibit F            Form of Trademark Assignment
Exhibit G            Intentionally Omitted
Exhibit H            Certain Excluded Assets
Exhibit I            Yellow Pages Authorization
Exhibit J            Form of Opinion of Seller's Counsel
Exhibit K            Form of Opinion of Buyer's Counsel
</TABLE>

<TABLE>
<CAPTION>
   Schedules:
   ---------
<S>                  <C>
Schedule 2.1(f)      Contracts
Schedule 2.4(b)      Excluded Contracts
Schedule 3.2         Working Capital Basis and Procedures
Schedule 3.5         Allocation of Purchase Price
Schedule 5.3         Consents and Approvals
Schedule 5.7         Conduct of Business
Schedule 5.11(a)     Intellectual Property Rights
Schedule 5.11(b)     IP License Agreements
Schedule 5.11(d)     Software and Databases
Schedule 5.11(e)     Information Technology
Schedule 5.15        Title to Property
Schedule 5.16        Real Property Leases
Schedule 5.17        Owned Real Property
Schedule 5.18(f)     Dispositions of Real Estate
Schedule 5.18(g)     Real Estate Payments
Schedule 5.20        Additional Disclosures
Schedule 5.22        Customer Deposits, Advances and Credits
</TABLE>

Net Working Capital Schedule A              Current Assets
Net Working Capital Schedule B              Current Liabilities

                                     - iv -

<PAGE>

                              TABLE OF DEFINITIONS

<TABLE>
<CAPTION>
                                                                                                             Section
                                                                                                             -------
<S>                                                                                                         <C>
"Accounts Receivable" ................................................................................         1.1(a)
"Action" .............................................................................................            5.9
"Affiliate" ..........................................................................................         1.1(b)
"Agreement" ..........................................................................................       Preamble
"Ancillary Agreements" ...............................................................................         1.1(c)
"Assumed Liabilities" ................................................................................            2.3
"Assumption Agreement" ...............................................................................         1.1(d)
"Authorized Representative............................................................................         3.2(e)
"Bill of Sale" .......................................................................................         1.1(e)
"Business" ...........................................................................................       Recitals
"Business Day" .......................................................................................         1.1(f)
"Buyer" ..............................................................................................       Preamble
"Buyer Indemnitees" ..................................................................................        10.3(a)
"Change in Working Capital" ..........................................................................      3.4(a)(i)
"Closing" ............................................................................................            4.1
"Closing Date" .......................................................................................            4.1
"Closing Date Working Capital" .......................................................................         1.1(g)
"Confidential Information"............................................................................         7.1(e)
"Contracts" ..........................................................................................         2.1(f)
"Debtors" ............................................................................................         1.1(h)
"Deeds" ..............................................................................................         1.1(i)
"Direct Claim" .......................................................................................        10.4(d)
"Dollars" ............................................................................................         1.1(j)
"Eaglerock" ..........................................................................................         1.1(k)
"Encumbrances" .......................................................................................         1.1(l)
"Environmental Laws" .................................................................................         1.1(m)
"Escrow Agreement"....................................................................................         1.1(n)
"Estimated Cash Purchase Price" ......................................................................         3.2(d)
"Estimated Net Working Capital" ......................................................................         3.2(a)
"Excluded Assets" ....................................................................................            2.2
"Excluded Liabilities" ...............................................................................            2.4
"Fiscal 2003 Financial Statement" ....................................................................           5.14
"GAAP" ...............................................................................................           5.14
"Governmental Entity" ................................................................................         1.1(o)
"Hazardous Substances" ...............................................................................         1.1(p)
"Hedge Arrangement" ..................................................................................         1.1(q)
"Hired Employees" ....................................................................................            7.5
"Holdback Amount".....................................................................................         3.3(a)
"Indemnifiable Buyer Losses" .........................................................................        10.3(a)
"Indemnifiable Losses" ...............................................................................        10.3(b)
"Indemnifiable Seller Losses" ........................................................................        10.3(b)
"Indemnifying Party" .................................................................................        10.3(c)
</TABLE>

                                      - v -

<PAGE>

<TABLE>
<S>                                                                                                         <C>
"Indemnitee" .........................................................................................        10.3(c)
"Indemnity Payment" ..................................................................................        10.3(c)
"Independent Accountant" .............................................................................      3.4(a)(i)
"Independent Accountant Determination" ...............................................................         3.4(b)
"Information Technology"..............................................................................        5.11(e)
"Intellectual Property Assignments" ..................................................................         1.1(r)
"Intellectual Property Rights" .......................................................................         1.1(s)
"Inventory" ..........................................................................................         1.1(t)
"IP License Agreement"................................................................................        5.11(b)
"Knowledge"...........................................................................................         1.1(u)
"Level Propane Purchase Agreement" ...................................................................         1.1(v)
"Losses" .............................................................................................        10.3(a)
"LP Gas"..............................................................................................      3.4(a)(i)
"Material Adverse Effect" ............................................................................         1.1(w)
"Net Purchase Price" .................................................................................            3.1
"Net Working Capital" ................................................................................         1.1(x)
"Notice of Objection" ................................................................................      3.4(a)(i)
"Objection Date" .....................................................................................         3.4(a)
"Owned Real Property" ................................................................................           5.17
"Permits" ............................................................................................         1.1(y)
"Permitted Encumbrances" .............................................................................         1.1(z)
"Person" .............................................................................................        1.1(aa)
"Purchased Assets" ...................................................................................            2.1
"Real Property" ......................................................................................        5.19(a)
"Real Property Leases" ...............................................................................           5.16
"Sale Order ..........................................................................................        1.1(bb)
"SEC" ................................................................................................           5.14
"Seller" .............................................................................................       Preamble
"Seller Employees" ...................................................................................        1.1(cc)
"Seller Indemnitees" .................................................................................        10.3(b)
"Seller Ownership Period".............................................................................        1.1(dd)
"Supervisor"..........................................................................................         3.2(e)
"Taxes"...............................................................................................        1.1(ff)
"Taxing Authority"....................................................................................        1.1(ff)
"Tax Return"..........................................................................................        1.1(ff)
"Third Party Claim" ..................................................................................        10.4(a)
"Uniform Commercial Code" ............................................................................        1.1(gg)
</TABLE>

                                     - vi -
<PAGE>

                            ASSET PURCHASE AGREEMENT

         THIS ASSET PURCHASE AGREEMENT (this "Agreement") is made and entered
into as of the 1st day of October, 2003 by and between HORIZON PROPANE LLC, an
Ohio limited liability company ("Seller"), and AMERIGAS PROPANE, L.P., a
Delaware limited partnership ("Buyer").

                                    RECITALS:

         A.       Seller is engaged in the business of, among other things,
selling, distributing, marketing and trading LP Gas to residential, industrial,
commercial and agricultural customers throughout the United States (the
"Business");

         B.       Seller desires to sell to Buyer, and Buyer desires to purchase
from Seller, all or substantially all of Seller's properties, rights and assets
relating to or arising from the Business on the terms and subject to the
conditions set forth in this Agreement.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

                                    ARTICLE I
                                   DEFINITIONS

         SECTION 1.1 DEFINITIONS. The following terms, as used in this
Agreement, shall have the meanings specified below:

         (a)      "Accounts Receivable" shall mean any and all trade receivables
and accounts, chattel paper, documents and instruments (as defined in the
Uniform Commercial Code) related to the Business, the Purchased Assets or the
Assumed Liabilities, including, without limitation, all accrued interest
receivable and all security for the payment thereof and, to the extent not
otherwise covered by the foregoing, all accounts receivable and notes
receivable, but not to the extent that any of the foregoing items described in
this SECTION 1.1(a) relate to the Excluded Assets or to any debts, liabilities
or obligations that are not Assumed Liabilities.

         (b)      "Active Customer" shall mean a customer of Seller that (a) has
received a delivery of LP Gas from Seller since December 31, 2002, (b) has not
terminated its account or had its account terminated by Seller, (c) does not
then have more than $100 payable to Seller for more than 90 days, (d) possesses
a tank leased from Seller and (e) has not made a tank pickup request or been
scheduled for a tank pickup by Seller.

         (c)      "Affiliate" shall mean, with respect to any specified Person,
any other Person (i) that directly, or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with the
specified Person, (ii) that is a general partner, director, manager, trustee or
principal officer of, or a shareholder, member or limited partner owning more
than ten percent (10%) of, or that serves in a similar capacity with respect to
the specified Person, or (iii)

<PAGE>

of which the specified Person is a general partner, director, manager, trustee
or principal officer or a shareholder, member or limited partner owning more
than ten percent of, or with respect to which the specified Person serves in a
similar capacity. For purposes of this definition of Affiliate, "control" means
the possession, directly or indirectly, of the power to direct or to cause the
direction of the management or policies of the Person in question through the
ownership of voting securities or by contract or otherwise.

         (d)      "Ancillary Agreements" shall mean each document and agreement
related to or arising under the transaction contemplated hereby, including,
without limitation, the Assumption Agreement, the Bill of Sale, the Deeds and
the Intellectual Property Assignments.

         (e)      "Assumption Agreement" shall mean the Assignment and
Assumption Agreement to be executed and delivered by Buyer and Seller at Closing
to effect the assignment of the Contracts specified therein to Buyer and the
assumption of the Assumed Liabilities by Buyer, in substantially the form of
EXHIBIT A attached hereto.

         (f)      "Bill of Sale" shall mean the Bill of Sale to be executed and
delivered by Seller to Buyer (and/or its designee) at the Closing to effect the
transfer of the personal and other property included in the Purchased Assets to
Buyer, in substantially the form of EXHIBIT B attached hereto.

         (g)      "Business Day" shall mean any day that is not a Saturday,
Sunday or other day on which banks are required or authorized by law to be
closed in Cleveland, Ohio.

         (h)      "Closing Date Working Capital" shall mean Net Working Capital
as of 12:01 A.M. (local time) on the Closing Date, as determined pursuant to
SECTION 3.4 hereof.

         (i)      "Debtors" shall mean Level Propane Gases, Inc., Level Energy
Group, Inc., Level Energy Distribution, Inc., Level Energy Transport, Inc.,
Lenergy Transport Leasing, Inc., WHM Carrier Services, Inc. and EP Transport,
Inc.

         (j)      "Deeds" shall mean the special or limited warranty deeds to be
executed and delivered by Seller to Buyer at the Closing to effect the
conveyance of the Owned Real Property to Buyer, in substantially the form of
EXHIBIT C attached hereto, with such changes thereto as may be needed, if any,
to ensure the Deeds will be recordable.

         (k)      "Dollars" or "$" shall mean United States Dollars.

         (l)      "Eaglerock" shall mean Eaglerock Propane Ltd., an Ohio limited
liability company.

         (m)      "Encumbrances" shall mean mortgages, liens, claims (including,
without limitation, claims of title or ownership), interests, security
interests, easements, covenants, restrictions or other encumbrances.

         (n)      "Environmental Laws" shall mean all federal, state, local,
provincial and foreign laws, regulations, rules and ordinances relating to
pollution or protection of human health (as it relates to environmental matters,
such as toxic tort or human exposure matters, but not as it

                                     - 2 -

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relates to worker safety or Occupational Safety and Health Act matters), or the
environment, including, without limitation, laws relating to releases or
threatened releases of Hazardous Substances into the environment (including,
without limitation, ambient air, controlled waters, surface water, groundwater,
water in sewers or pipes or conduits, land, surface and subsurface strata).

         (n)      "Escrow Agreement" shall mean the Escrow Agreement to be
executed and delivered by Buyer, Seller and an escrow agent at Closing in
substantially the form of EXHIBIT D attached hereto.

         (o)      "Governmental Entity" shall mean any domestic, foreign or
multi-national federal, state, provincial, regional, municipal or local
governmental or administrative entity, including any court, tribunal, agency,
bureau, committee, board, regulatory body, administration, commission or
instrumentality constituted or appointed by any such entity.

         (p)      "Hazardous Substances" shall mean any chemicals, materials or
substances defined as or included in the definition of "hazardous substances,"
"hazardous wastes," "controlled waste," "hazardous materials," "hazardous
constituents," "restricted hazardous materials," "extremely hazardous
substances," "toxic substances," "contaminants," "pollutants," "toxic
pollutants," or words of similar meaning and regulatory effect under any
applicable Environmental Law, including, without limitation, petroleum,
petroleum products, polychlorinated biphenyls, asbestos and any substance (alone
or in combination with any other substance) likely to cause significant harm to
the environment.

         (q)      "Hedge Arrangement" shall mean an agreement, option, forward
contract, fuel exchange or similar instrument that entitles Seller to purchase
or acquire LP Gas for the Business or inventory that has been designated as a
hedge against forward commitments to customers.

         (r)      "Intellectual Property Assignments" shall mean the
Intellectual Property Assignment to be executed and delivered by Buyer and
Seller at Closing to effect the transfer of the Intellectual Property Rights to
Buyer, in substantially the form of EXHIBIT E attached hereto, and the Trademark
Assignment, to be executed and delivered by Buyer and Seller at Closing to
effect the transfer of the Trademarks to Buyer, in substantially the form of
EXHIBIT F attached hereto.

         (s)      "Intellectual Property Rights" shall mean all of the following
rights of Seller in any jurisdiction throughout the world: (a) patents, patent
applications and patent disclosures, as well as all reissues, divisionals,
continuations and continuation-in-part applications and any patents issuing
thereon; (b) trademarks, service marks, trade dress, trade names (including,
without limitation, the name "Horizon Propane" and any variation thereof), trade
styles, corporate names (including, without limitation, the name "Horizon
Propane" and any variation thereof), logos and Internet domain names (including,
without limitation, horizonpropane.com, level.com and levelpropane.com),
together with all goodwill associated with each of the foregoing, (whether
domestic or foreign, registered or unregistered), together with all
applications, registration certificates, renewals, investigations, search
reports, histories and other documents or files pertaining thereto; (c)
copyrights and copyrightable works, and all registrations and applications
therefor, both registered and unregistered, foreign and domestic;

                                     - 3 -

<PAGE>

(d) registrations and applications for any of the foregoing; (e) art work,
labels, designs, specifications, designs-in-progress, formulations, know-how,
prototypes, inventions and discoveries; (f) trade secrets, technology or
processes, computer software (including documentation and related object and, if
applicable, source codes) and all confidential or proprietary information; and
(g) rights under any license agreements for any of the foregoing.

         (t)      "Inventory" shall mean, collectively, all inventories of LP
Gas, finished goods (on hand, in transit or in storage), supplies, raw
materials, spare, component and replacement parts, related accessories,
work-in-process inventory, consigned inventory of the Business located on the
premises of third parties, hardware and packing materials, including, without
limitation, rights to receive credits, refunds or rebates in connection with the
purchase of such inventories, together with packaging and labeling material and
supplies and sales literature, and, to the extent not otherwise covered by the
foregoing, all inventory (as defined in the Uniform Commercial Code), related to
the Business, the Purchased Assets or the Assumed Liabilities.

         (u)      "Knowledge" means the actual knowledge of Andrew Green, Paul
Lowe, Mark Williams or Richard Anter, following due inquiry of the employees,
accountants, consultants and attorneys of Seller and Eaglerock whom they
believe, in good faith, to be the persons responsible for the subject matter of
the inquiry.

         (v)      "Level Propane Purchase Agreement" shall mean that certain
Asset Purchase Agreement, dated June 27, 2003, among the Debtors and Eaglerock,
as amended.

         (w)      "Material Adverse Effect" shall mean any event, condition or
matter in respect of the operation of the Business, the Purchased Assets and the
Assumed Liabilities that, in the aggregate, results in or could reasonably be
expected to result in a material adverse effect on the Business or the assets
(including the Purchased Assets), properties, liabilities (including the Assumed
Liabilities), financial condition, prospects or operations of the Business taken
as a whole.

         (x)      "Net Working Capital" means, for purposes of this Agreement,
the excess of the current assets listed on NET WORKING CAPITAL SCHEDULE A of
Seller over the current liabilities listed on NET WORKING CAPITAL SCHEDULE B of
Seller, except as otherwise specified below. In determining current assets and
liabilities hereunder, (i) only the accounts listed on NET WORKING CAPITAL
SCHEDULES A AND B shall be taken into account regardless of their amount and all
known errors and omissions shall be corrected as provided in SECTION 3.4, (ii)
all levels of reserves for any known and quantifiable liabilities and
obligations shall be maintained, (iii) inventory shall be accounted for as
provided in SECTION 3.2 and SCHEDULE 3.2; (iv) the total value of the Accounts
Receivable shall be determined by applying the following discount to each
outstanding balance, based on the date of the original invoice as of the date of
determination, 0-60 days, 2%; 61-90 days, 15%; 91-120 days, 35%; 121-180 days,
60%; 181 to 270, 75%; outstanding balances beyond 270 days shall not be afforded
any value, (v) Excluded Assets and Excluded Liabilities shall be excluded and
(vi) accrued vacation shall be based in part upon information provided by Buyer
setting forth which Seller Employees will not be offered employment by Buyer.

                                     - 4 -

<PAGE>

         (y)      "Permits" shall mean all licenses, franchises, permits,
certificates, consents, qualifications and other instruments issued by any
Governmental Entity related to the Business, the Purchased Assets or the Assumed
Liabilities.

         (z)      "Permitted Encumbrances" shall mean (i) mechanics', carriers',
workmen's, repairmen's or other like Encumbrances arising or incurred in the
ordinary course of business and related to services the payment for which is not
yet due and payable, (ii) Encumbrances for taxes, assessments and other
governmental charges that are not due and payable or that are being contested in
good faith and for which appropriate reserves are included in Closing Date
Working Capital, (iii) Encumbrances arising pursuant to the terms of any
Contract, (iv) Encumbrances existing as of and surviving the Sale Order and (v)
other imperfections of title or Encumbrances, if any, that, when taken together,
are not material in amount or do not materially impair the use, value or
marketability of the Purchased Assets taken as a whole.

         (aa)     "Person" shall mean any individual, corporation (including any
non-profit corporation), general or limited partnership, limited liability
company, joint venture, estate, trust, association, organization, labor union or
other entity or instrumentality of a government.

         (bb)     "Sale Order" shall mean the Order (i) Approving the Sale of
Substantially All of the Assets of the Debtors' Propane Distribution Business
Outside of the Ordinary Course of Business, Free and Clear of Liens, Claims and
Encumbrances, (ii) Approving Terms of and Authorizing the Debtors to Enter Into
and Perform Under Asset Purchase Agreement, and (iii) Authorizing the Assumption
and Assignment of Certain Executory Contracts and Unexpired Leases in Connection
Therewith, entered by the United States Bankruptcy Court, Northern District of
Ohio, Eastern Division on June 27, 2003, as the same has been amended August 27,
2003.

         (cc)     "Seller Employees" shall mean all employees of Seller who are
actively employed on the Closing Date by Seller exclusively in connection with
the Business, including, but not limited to, employees who, as of the Closing
Date, are on vacation, jury duty, holiday, paid sick day or on an authorized
leave of absence.

         (dd)     "Seller Ownership Period" shall mean the period beginning on
July 2, 2003 and ending on and including the Closing Date.

         (ee)     Intentionally omitted.

         (ff)     "Taxes" shall mean any and all taxes, fees, levies, compulsory
pension contributions or other assessments, including, without limitation,
federal, state, local, or foreign income, corporate gross receipts, excise, real
or personal property, sales, withholding, social security, occupation, use,
service, value added, license, net worth, payroll, franchise, severance, stamp,
transfer, registration, premium, windfall, profits, environmental, customs
duties, capital stock, capital duty profits, unemployment, disability,
alternative or add-on minimum, estimated or any similar taxes imposed by any
Taxing Authority together with any interest, penalties or additions to tax and
additional amounts imposed with respect thereto, (including any fee or
assessment or other charge in the nature of or in lieu of any tax) in each case,
whether or not disputed and including any transferee or secondary liability in
respect of any tax (whether

                                     - 5 -

<PAGE>

imposed by law, contractual agreement or otherwise) and any liability in respect
of any tax as a result of being a member of any Affiliated, consolidated,
combined, unitary or similar group. "Taxing Authority" shall mean any
governmental entity responsible for the imposition or collection of any Taxes.
"Tax Return" shall mean any report, return, document, declaration or other
information or filing required to be supplied to any Taxing Authority or
jurisdiction (foreign or domestic) with respect to Taxes.

         (gg)     "Uniform Commercial Code" shall mean the Uniform Commercial
Code in effect in the State of Ohio as of the date hereof.

         SECTION 1.2 CONSTRUCTION. The terms "hereby," "hereto," "hereunder" and
any similar terms as used in this Agreement, refer to this Agreement in its
entirety and not only to the particular portion of this Agreement where the term
is used. The term "including" when used herein without the qualifier, "without
limitation," shall mean "including, without limitation." Wherever in this
Agreement the singular number is used, the same shall include the plural, and
the masculine gender shall include the feminine and neuter genders, and vice
versa, as the context shall require. Provisions shall apply, when appropriate,
to successive events and transactions.

                                   ARTICLE II
                                PURCHASE AND SALE

         SECTION 2.1 PURCHASE AND SALE OF ASSETS. Except for the Excluded
Assets, upon the terms of this Agreement, at the Closing, Seller shall sell,
assign, convey, transfer and deliver to Buyer, and Buyer shall, by payment of
the Net Purchase Price, purchase, acquire and assume from Seller, free and clear
of all Encumbrances (other than and subject to Permitted Encumbrances), all
right, title and interest obtained by Seller pursuant to the Level Propane
Purchase Agreement and the Sale Order, or thereafter acquired by Seller prior to
Closing, in, to and under the real, personal, tangible and intangible property
or assets of every kind and description owned, leased, licensed, used, developed
for use or intended for use in the conduct of the Business and related thereto,
wherever located (collectively, the "Purchased Assets"), including, without
limitation, all right, title and interest in, to and under all of the following,
to the extent obtained by Seller pursuant to the Level Propane Purchase
Agreement and the Sale Order, or thereafter acquired by Seller prior to Closing:

         (a)      any and all cash (including all cash residing in (i) any
collateral cash account securing any obligation or contingent obligation and
(ii) any designated cash account), cash equivalents and bank deposits related to
the Business, the Purchased Assets or the Assumed Liabilities;

         (b)      any and all Inventory, except Inventory disposed of in the
ordinary course of business prior to the Closing Date;

         (c)      any and all tangible personal property related to the Business
(other than Inventory referred to in SECTION 2.1(b)), the Purchased Assets or
the Assumed Liabilities, including, without limitation, any and all propane
tanks, equipment, machinery, tools, parts, fittings, dies, cranes, fixtures,
vehicles, trucks, crane trucks, trenchers, trailers, compressors,

                                     - 6 -

<PAGE>

computers, terminals, computer equipment and systems, furniture, office
equipment, business machines, telephones, telephone systems, parts and
accessories used in the Business, wherever located, whether leased, licensed or
owned, and any and all assignable warranties of third parties with respect
thereto obtained by Seller pursuant to the Level Propane Purchase Agreement, in
each case, free and clear of all Encumbrances other than Permitted Encumbrances;

         (d)      all of the Accounts Receivable as of the Closing Date;

         (e)      any and all prepaid expenses, prepaid deposits, retainers,
customer deposits, refunds, prepaid budget payments, prebuy payments and other
similar payments and security deposits relating to the Business, the Purchased
Assets and the Assumed Liabilities;

         (f)      except as set forth in SECTION 2.2(d) and SCHEDULE 2.4(b), any
and all contracts, agreements, licenses, leases, permits, quotations, customer
contracts, procurement contracts, representative and distribution agreements,
licenses, purchase and sales orders, confidentiality, noncompetition or
nondisclosure agreements and executory commitments and instruments to which
Seller is a party, including, without limitation, the Level Propane Purchase
Agreement, the Real Property Leases, the Purchase Agreement and License, dated
July 2, 2003, among Seller, John Verbos and the Debtors, the Employment
Agreement, dated July 2, 2003, between Seller and John Verbos and the contracts
set forth on SCHEDULE 2.1(f) attached hereto (collectively, the "Contracts");

         (g)      except as set forth in SECTION 2.2(b) and unless transfer to a
buyer of a related business is prohibited by applicable privacy laws, any and
all employee records, books, accounts, files, correspondence, credit and sales
records, supplier lists, import and export records, product service records,
equipment and parts lists, operating records, operating, safety and maintenance
manuals, engineering design plans, blueprints and as-built plans,
specifications, engineering drawings, procedures and similar items of Seller and
relating specifically to the Business, the Purchased Assets or the Assumed
Liabilities, including, without limitation, books of account, all customer
lists, billing records and other customer correspondence relating to the
Business, any confidential information reduced to writing, product packaging
instructions, product specifications, sources and specifications for raw
materials, toxicity and general health and safety information, environmental
compliance and regulatory information, research and development records and
reports, all regulatory filings and other books and records in connection with
the operation of the Business;

         (h)      any and all rights, judgments, claims or counterclaims or
causes of action by Seller against any other Person, whether now accrued or
hereafter to accrue, contingent or otherwise, known or unknown, including,
without limitation, all rights under express or implied warranties from
manufacturers, vendors and suppliers, claims for collection or indemnity, claims
in bankruptcy, choses in action, rights against parties to confidentiality
agreements (other than rights of Seller pursuant to the Confidentiality
Agreement), customers and vendors and service providers and all other rights,
privileges, claims, causes of action and options relating or pertaining to the
Business, the Purchased Assets or the Assumed Liabilities, but not to the extent
that any of the foregoing items described in this SECTION 2.1(h) are included in
SECTIONS 2.2 or 2.4;

                                     - 7 -

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         (i)      any and all Intellectual Property Rights owned by, issued to
or licensed to Seller or otherwise used in the Business, together with all
related income, royalties, damages and payments due or payable after the Closing
(including damages and payments for past or future infringements or
misappropriations thereof), the right to sue and recover for past infringements
or misappropriations thereof, any and all corresponding rights that, now or
hereafter, may be secured throughout the world and all copies and tangible
embodiments of any such Intellectual Property Rights;

         (j)      any and all data, data bases, books, records, correspondence,
business plans and projections, records of sales, customer and vendor lists,
files, and papers used in (or for the benefit of) the Business;

         (k)      except as set forth in SECTION 2.2(d), any and all Permits
that are assignable to Buyer;

         (l)      except as set forth on EXHIBIT H, the Owned Real Property,
including all easements, improvements and all appurtenances to such easements or
improvements located thereon, including, without limitation, buildings, outside
storage areas, driveways, walkways and parking areas, but in all events only to
the extent of Seller's interest, if any, in the same;

         (m)      any and all goodwill associated with the Business (including,
without limitation, all sales, marketing, advertising and other related books,
records and sales data, all telephone numbers, web-site addresses, e-mail
addresses, and fictitious or legal names); and

         (n)      all right, title and interest of Seller in, to and under its
Level Propane Purchase Agreement, the ancillary documents delivered thereunder
and the related Sale Order.

         SECTION 2.2 EXCLUDED ASSETS. Notwithstanding any provision herein to
the contrary, Seller shall not sell, convey, assign, transfer or deliver to
Buyer, and Buyer shall not purchase, acquire or assume from Seller, and the
Purchased Assets shall not include, any right, title and interest in, to and
under the following assets of Seller (collectively, the "Excluded Assets"):

         (a)      any and all equity interests issued or held by Seller or any
Affiliate of Seller;

         (b)      Seller's limited liability company charter, qualifications to
conduct business as a foreign limited liability company, arrangements with
registered agents relating to foreign qualifications, taxpayer and other
identification numbers, tax records, seals, minute books, membership interest
transfer books and other documents relating to the organization, maintenance and
existence of Seller as a limited liability company and all books and records of
Seller relating to or directly associated with Seller's limited liability
company member capital activities;

         (c)      the rights of Seller under this Agreement and the Ancillary
Agreements;

         (d)      any Permits that are not assignable to Buyer;

         (e)      all contracts or policies of insurance to which Seller is a
party;

                                     - 8 -

<PAGE>

         (f)      the rights of Seller to obtain premium refunds with respect to
insurance coverage;

         (g)      prepaid insurance; and

         (h)      any and all assets listed on EXHIBIT H attached hereto.

         SECTION 2.3 ASSUMED LIABILITIES. Upon the terms of this Agreement, at
the Closing, Buyer shall, by payment of the Net Purchase Price, assume and agree
to pay, perform and discharge when due, and Seller shall sell, assign, convey
and transfer to Buyer, only the following liabilities and obligations of Seller,
in accordance with the respective terms and subject to the respective conditions
thereof (collectively, the "Assumed Liabilities"):

         (a)      all liabilities and obligations of Seller under the Contracts
identified on SCHEDULE 2.1(f) (and not SCHEDULE 2.4(b)) and for scheduled
payments thereunder, and all liabilities and obligations of Seller under (i) the
Contracts with Seller's customers entered into during the Seller Ownership
Period; (ii) the Purchase Agreement and License, dated July 2, 2003, among
Seller, John Verbos and the Debtors; (iii) the Employment Agreement, dated July
2, 2003, between Seller and John Verbos; (iv) the Level Propane Purchase
Agreement (except those relating to Seller's breach of such Agreement on or
before the Closing Date); and (v) the Real Property Leases, and for scheduled
payments thereunder; provided, however, that nothing contained in this Agreement
shall be construed as in any way limiting Buyer's right to exercise the rights
to assume or not assume Contracts set forth in SECTION 2.5 and 7.13 of the Level
Propane Purchase Agreement with respect to any Contract on or after the Closing
Date in accordance with the Sale Order, to the extent applicable;

         (b)      all liabilities and obligations with respect to the current
liabilities included in the calculation of Closing Date Working Capital;

         (c)      liabilities and obligations relating to any customer deposits,
advances and credits,

         (d)      all liabilities and obligations of Seller to pay, perform and
discharge all of Seller's (i) trade accounts payable (which shall exclude for
purposes hereof all professional fees, including, without limitation, all
attorneys' and accountants' fees, incurred by Seller as a result of and in
connection with the negotiation and preparation of this Agreement and the
consummation of the transactions contemplated hereby) incurred in the ordinary
course of operating the Business; and (ii) accrued and unpaid Hired Employee
expenses incurred in the ordinary course of business;

         (e)      liabilities to Hired Employees for accrued vacation up to the
amounts included in the calculation of Closing Date Working Capital; and

         (f)      all costs, expenses and other liabilities and obligations
related to the removal of tanks from customers sites by Buyer from and after the
Closing Date.

         SECTION 2.4 EXCLUDED LIABILITIES. Notwithstanding any provision herein
to the contrary, Buyer shall not assume, agree to pay, perform or discharge when
due, and Seller shall not sell, convey, assign, transfer or deliver to Buyer any
liability other than the Assumed Liabilities, and without limiting the
foregoing, the Assumed Liabilities shall not include, the

                                     - 9 -

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following liabilities and obligations of Seller (collectively, all liabilities
of Seller other than the Assumed Liabilities are referred to as the "Excluded
Liabilities"):

         (a)      all extraordinary liabilities and obligations to pay, perform
or discharge employee severance payments incurred or accrued prior to the
Closing Date;

         (b)      any and all liabilities and obligations of Seller under any
contract or agreement that is not specifically assumed by Buyer pursuant hereto,
including, without limitation, the contracts and agreements set forth on
SCHEDULE 2.4(b);

         (c)      any and all liabilities and obligations to the member of
Seller or the members of Eaglerock; and

         (d)      liabilities for stamp taxes, recording fees, transfer taxes
and similar charges or other Taxes, if any, associated with the transfer of
Purchased Assets to Seller by Debtors in accordance with the Level Propane
Purchase Agreement, subject to SECTION 3.6(a) hereof.

                                  ARTICLE III
                      PURCHASE PRICE AND MANNER OF PAYMENT

         SECTION 3.1 NET PURCHASE PRICE AMOUNT; ADJUSTMENTS. On the terms and
subject to the conditions hereof, in consideration of the transfer of the
Purchased Assets and the other undertakings of Seller, Buyer shall pay, for the
account of Seller, as provided in SECTION 3.3, the cash purchase price in an
aggregate amount of $31,043,500 (of which $43,500 relates to the Taos, New
Mexico property recently acquired by Seller under the Sale Order), subject to
adjustment as provided in SECTIONS 3.2 and 3.4 (such amount, as adjusted
pursuant to SECTIONS 3.2 and 3.4, is referred to as the "Net Purchase Price").

         SECTION 3.2 ESTIMATED NET WORKING CAPITAL; CLOSING DATE ADJUSTMENT.

         (a)      At least one (1) Business Day prior to the Closing Date,
Seller shall deliver to Buyer in writing Seller's reasonable, good faith
estimate of the detailed calculation of Net Working Capital as of the Closing
Date, which estimate will be determined on a basis of, and consistent with, the
basis and procedures set forth in SCHEDULE 3.2 attached hereto, using the most
recent financial information available (the "Estimated Net Working Capital"),
together with a certificate signed by Mark Williams, the Vice President of
Finance of Seller certifying that the Estimated Net Working Capital was
determined in good faith consistent with the basis and procedures set forth in
SCHEDULE 3.2 and the definition of Net Working Capital.

         (b)      If Estimated Net Working Capital is less than $2,600,000, then
the cash payable under SECTION 3.3(c) at Closing shall be reduced by the amount
by which $2,600,000 exceeds Estimated Net Working Capital.

         (c)      If Estimated Net Working Capital is greater than, $2,600,000,
then the cash payable under SECTION 3.3(c) at Closing shall be increased by the
amount, if any, by which the Estimated Net Working Capital exceeds $2,600,000.

                                     - 10 -

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         (d)      The aggregate amount paid at Closing under SECTION 3.3, as
adjusted pursuant to this SECTION 3.2 is referred to as the "Estimated Cash
Purchase Price."

         (e)      Physical Inventory. Buyer and Seller shall, at their own
expense, cooperate in taking physical inventories of LP Gas of the Business as
of Closing to support the inventory current asset included in Closing Date
Working Capital. On the Closing Date, one or more representatives of Buyer will
conduct (i) a reading of the meters and/or gauges on the bulk storage tanks,
bobtail trucks and tanker trucks acquired by Buyer hereunder, (ii) conduct a
roll forward of the last inventory of LP Gas contained in yard tanks, conducted
by Plante & Moran, PLLC in connection with its audit of the Fiscal 2003
Financial Statements, with a roll forward of LP Gas gallons removed from said
tanks based upon Seller's perpetual records, (iii) a physical count of
regulators and copper tubing at all locations at which such items are located
and (iv) a physical count of rail cars at all locations at which such rail cars
are located and utilize Seller's rail loading bills to determine the amount of
gallons of LP Gas in such rail cars. One or more representatives of Seller shall
be permitted, and Buyer shall allow Seller and its representatives, to accompany
Buyer and its representatives during the physical inventory as set forth in the
preceding sentence and, upon notice to Buyer, the parties shall work together to
conduct a physical inventory at each site at which Buyer performs a physical
inventory on the Closing Date.

         SECTION 3.3 PAYMENT OF ESTIMATED CASH PURCHASE PRICE.

         (a)      On the Closing Date, Buyer shall pay (or cause to be paid)
$3.1 million of the Estimated Cash Purchase Price to the escrow agent under the
Escrow Agreement to retain, for the purposes provided in this Section (the
"Holdback Amount"). To the extent that Buyer (i) is held liable for and pays for
any Excluded Liability, (ii) must satisfy any such Excluded Liability to obtain
all right, title, interest to and benefits of the Purchased Assets required to
be assigned under this Agreement, (iii) becomes entitled to indemnification of
Losses under Article X, or (iv) becomes entitled to a payment on account of a
Change in Working Capital as provided in SECTION 3.4(d), then Buyer shall be
entitled to recover a corresponding amount from the Holdback Amount as more
particularly described in the Escrow Agreement. As more particularly described
in the Escrow Agreement, Seller shall be entitled to releases of the Holdback
Amount as follows: (1) at the date that a final determination of the Closing
Date Working Capital is made, $1,000,000 minus (i) any amounts required to be
paid to Buyer as provided in SECTION 3.4(d) as result of a Change in Working
Capital; and (ii) the amount of any other claims made by Buyer against the
Holdback Amount pursuant to this SECTION 3.3(a); (2) on the date that is six (6)
months after the Closing Date, $1,000,000 minus the amount of any claims made by
Buyer against the Holdback Amount pursuant to this SECTION 3.3(a) and not
previously paid to Buyer; and (3) on December 31, 2004, if there are no
unresolved claims by Buyer against the Holdback Amount, the remaining balance of
the Holdback Amount. However, if there are any claims by Buyer against the
Holdback Amount as of December 31, 2004, the amount of such claims shall remain
in the escrow account until the claims are resolved in accordance with the
procedures set forth in the Escrow Agreement. The parties shall be entitled to
issue directions to the escrow agent under the Escrow Agreement for the release
of the amounts Buyer and Seller have agreed shall be released under this
Section. The fees and expenses of the escrow agent under the Escrow Agreement
shall be paid as provided in the Escrow Agreement.

                                     - 11 -

<PAGE>

         (b)      At the Closing, as directed by Seller and in accordance with
the payoff letter delivered to Buyer, Buyer shall pay REJ Propane LLC a portion
of the Estimated Cash Purchase Price equal to an aggregate amount, by wire
transfer of immediately available funds, required to satisfy the liabilities and
obligations of Seller under the Credit Agreement, dated as of July 2, 2003,
between Seller and REJ Propane LLC (the "Credit Agreement"). No later than the
close of business on the last Business Day preceding the Closing Date, Seller
shall cause REJ Propane LLC to designate the accounts to which such payments
shall be made and provide wire instructions for such accounts.

         (c)      At the Closing, Buyer shall pay Seller the balance of the
Estimated Cash Purchase Price, by wire transfer of immediately available funds
after payment of the amounts set forth in SECTION 3.3(a) and 3.3(b). Seller
shall designate, not later than the close of business on the last Business Day
preceding the Closing Date, the account or accounts to which the payment shall
be made and Seller shall provide wire instructions for such account or accounts.

         SECTION 3.4 POST-CLOSING WORKING CAPITAL CALCULATION.

         (a)      Generally.

                  (i)      If, on or before the 60th day following the Closing
         Date (the "Objection Date"), either Buyer or Seller determines that
         Closing Date Working Capital differs from Estimated Net Working
         Capital, then Buyer and/or Seller, as the case may be, shall provide
         notice of its determination to the other party on or before the
         Objection Date ("Notice of Objection"). The party receiving the Notice
         of Objection may either accept the determination set forth in the
         Notice of Objection or notify the sending party within twenty (20) days
         after receipt of the Notice of Objection that such party disputes the
         determination set forth in the Notice of Objection. If the party
         receiving a Notice of Objection does not dispute the determination as
         indicated in a written notice to the party submitting the Notice of
         Objection within such twenty-day period, then Closing Date Working
         Capital shall be deemed to be the amount set forth as the Closing Date
         Working Capital in the Notice of Objection and the Net Purchase Price
         shall be adjusted by the amount, if any, by which such Closing Date
         Working Capital exceeds or is less than the Estimated Net Working
         Capital (the "Change in Working Capital"). If the party receiving a
         Notice of Objection delivers a timely notice of dispute, the parties
         shall both use good faith efforts to mutually agree upon a
         determination of Closing Date Working Capital in order to reach an
         amount, if any, of the Change in Working Capital. If Buyer and Seller
         fail to mutually agree on the Change in Working Capital within thirty
         (30) days after receipt of the Notice of Objection, Buyer and Seller
         shall retain Plante & Moran PLLC, or, if such firm is unable or
         unwilling to serve in this capacity, then another independent
         accountant acceptable to both Buyer and Seller (the "Independent
         Accountant") to cause a determination to be made of the Change in
         Working Capital in accordance with SECTION 3.4(b).

                  (ii)     If neither party delivers a Notice of Objection on or
         before the Objection Date, the Estimated Net Working Capital shall be
         conclusively established as the final and correct Closing Date Working
         Capital and the Estimated Cash Purchase Price shall be deemed the Net
         Purchase Price. If either party delivers, or both parties

                                     - 12 -

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         deliver, a Notice of Objection on or before the Objection Date,
         following the resolution of the Notice of Objection pursuant to this
         SECTION 3.4 and the payment of any amounts required under SECTION
         3.4(d) hereof, the purchase price as so determined shall be the Net
         Purchase Price.

         (b)      Independent Accountant Determination. The Independent
Accountant shall determine, on the basis of, and consistent with, the basis and
procedures set forth in SCHEDULE 3.2 and the definition of Net Working Capital,
the Change in Working Capital and shall deliver to Buyer and Seller, in
accordance with SECTION 11.4 hereof and as soon as practicable upon completion
but in any event not later than 30 days after being engaged to reach the Change
in Working Capital, (i) its determination of the Closing Date Working Capital,
(ii) its determination of the Change in Working Capital and (iii) its
calculation of the amount of the payment, if any, to be made pursuant to SECTION
3.4(d) hereof (the "Independent Accountant Determination"). Buyer and Seller
hereby agree to cooperate with, and to cause its personnel and agents to
cooperate with and be reasonably available to discuss, the Independent
Accountant Determination.

         (c)      Independent Accountant Binding. The Independent Accountant
Determination shall be final and binding upon Buyer and Seller without any
further right of appeal. All costs and expenses of the Independent Accountant
shall be shared equally by Buyer and Seller.

         (d)      Payment. The amount of any Change in Working Capital mutually
agreed to by Buyer and Seller or as reflected in the Independent Accountant
Determination, as the case may be:

                  (i)      If Positive Change. If the Change in Working Capital
         is determined to be positive, then the amount of such change shall be
         paid by Buyer to Seller within five Business Days after the receipt by
         Buyer and Seller of the Independent Accountant Determination or the
         agreement between Buyer and Seller, as the case may be; and

                  (ii)     If Negative Change. If the Change in Working Capital
         is determined to be negative, then Buyer shall be entitled to recover
         the amount of such change from the Holdback Amount as provided in the
         Escrow Agreement.

         (e)      Creation and Storage of Back-Up Materials. Buyer and Seller
shall cooperate and use commercially reasonable efforts to create and store a
back-up record of the Seller's MIS system on the last day before the Closing
Date, the Closing Date and the day immediately after the Closing Date, which
such back-up record shall be used by Buyer and Seller, and any third party
necessary (including the Independent Accountant), to determine the Change in
Working Capital. The back-up record shall be stored and held in escrow by Iron
Mountain through the date of the final disbursement pursuant to the Escrow
Agreement and all costs and expenses related to this SECTION 3.4(e) shall be
paid one-half by Buyer and one-half by Seller.

         SECTION 3.5 ALLOCATION OF NET PURCHASE PRICE. The parties agree that,
for all tax and other reporting purposes, the Net Purchase Price shall be
allocated among the Purchased Assets and the Assumed Liabilities in accordance
with the principles set forth in SCHEDULE 3.5 attached

                                     - 13 -

<PAGE>

hereto. Seller and Buyer shall be bound by such allocation, and shall file, or
cause to be filed, a Form 8594 and all applicable federal, state, local,
provincial and foreign income, franchise and excise tax returns in a manner that
is consistent with such allocation. If the allocation is disputed by any taxing
authority, the party receiving notice of such dispute shall promptly notify the
other party hereto concerning the existence of such dispute and the parties
shall consult with each other with respect to all issues related to the
allocation in connection with such dispute. If the Internal Revenue Service
proposes a different allocation, either party may file amended returns based on
such allocation.

         SECTION 3.6 TAXES, TITLE COMMITMENT AND INSURANCE. Buyer shall be
charged with and solely responsible for (a) any and all excise, sales, use,
transfer, value added, registration, stamp, recording, documentary, conveyance,
franchise, property, gains and similar taxes, levies, charges and recording,
filing and other fees incurred in connection with the transactions contemplated
by this Agreement, including, without limitation, in the case of a direct
transfer from the Debtors or another party to Buyer with respect to which only
one stamp tax, recording fee, transfer tax or similar charge or other Tax is
payable, which shall be deemed a tax, charge or fee in connection with this
Agreement and payable by Buyer pursuant to this Section; (b) any and all costs
of examining or transferring title to the Owned Real Property, (c) any and all
costs of obtaining a title commitment or title insurance; and (d) any and all
brokers' commissions and finders' fees incurred by Buyer in connection with the
sale of the Owned Real Property to Buyer.

                                   ARTICLE IV
                                   THE CLOSING

         SECTION 4.1 TIME AND PLACE OF CLOSING. Upon the terms and subject to
the satisfaction of the conditions contained in Article VIII of this Agreement,
the closing of the transfer of the Purchased Assets and the assumption of the
Assumed Liabilities contemplated by this Agreement (the "Closing") shall take
place at the offices of Baker & Hostetler LLP, 3200 National City Center, 1900
East Ninth Street, Cleveland, Ohio 44114 at such time as the parties may decide.
All transactions provided for herein to occur on and as of the Closing Date
shall be deemed to have occurred simultaneously and to be effective as of 12:01
A.M. (local time) on such date. The date and time at which the Closing actually
occurs is hereinafter referred to as the "Closing Date."

         SECTION 4.2 DELIVERIES BY SELLER. At or prior to the Closing, Seller
shall deliver the following to Buyer (or its designee):

         (a)      one or more Bills of Sale, duly executed by Seller in favor of
Buyer or its designee;

         (b)      the Deeds for each Owned Real Property, each duly executed by
Seller;

         (c)      the Assumption Agreement, duly executed by Seller;

         (d)      the Intellectual Property Assignments, duly executed by
Seller, together with executed assignments of all trademarks and web domain
names included in the Purchased Assets in form acceptable for filing and any
other specific assignment documents as Buyer reasonably

                                     - 14 -

<PAGE>

identifies as necessary to transfer all right, title and interest of Seller in
and to the Intellectual Property to Buyer;

         (e)      Intentionally omitted;

         (f)      the Escrow Agreement, duly executed by Seller and the escrow
agent;

         (g)      original endorsed certificates of title to each of the
vehicles, and any other property subject to certificate of title, included in
the Purchased Assets, or the right to receive such certificates of title from
Debtors if the Seller has used commercially reasonable efforts to obtain such
title from Debtors without success through the Closing Date;

         (h)      all assignment documents of any kind necessary to vest all
right, title and interest of Seller in and to each Hedge Arrangement;

         (i)      all transfer letters and other assignment documents of any
kind necessary to transfer to Buyer the same rights to access gas pipeline and
other gas supply sources that Seller uses in the Business as of the date hereof;

         (j)      certified copies of the resolutions duly adopted by the sole
member of Seller authorizing the execution, delivery and performance of this
Agreement and each of the transactions contemplated hereby;

         (k)      reasonably satisfactory evidence that the party executing this
Agreement and all other related agreements and documents for and on behalf of
Seller is authorized to do so, including certified resolutions and a signature
and incumbency certificate;

         (l)      the certificate required pursuant to SECTION 3.2 hereof;

         (m)      a schedule of the bank accounts used in the Business
(including those used for third party deposits), identifying the account by
bank, account number, location, and authorized signatories with respect to each
such account, together with new signature cards, account name change
authorizations and/or other documents necessary to transfer title, control of
and the ability to draw on such accounts to Buyer as of the Closing Date;

         (n)      all third party consents and waivers and governmental
approvals to the transactions contemplated hereby required pursuant to SECTION
5.3 and SCHEDULE 5.3;

         (o)      a Yellow Pages authorization letter in the form attached as
EXHIBIT I and a comparable authorization letter to be directed to local
telephone service providers;

         (p)      a schedule of Seller Employees, listing employee's name and
years of service;

         (q)      an opinion of counsel to Seller substantially in the form of
EXHIBIT J hereto;

         (r)      pay off letter from REJ Propane specifying the total amount
necessary to satisfy in full Seller's obligations thereto as of the Closing Date
and a commitment to release or authorize the release, upon payment of such
amounts, any related Encumbrances

                                     - 15 -

<PAGE>

         (s)      a list of Active Customers as of September 30, 2003;

         (t)      financial data indicating that Seller has realized an average
margin (i.e., gross sales minus the cost of gas sold (including transportation))
of at least $0.47 per gallon of LP Gas sold during the 12 month period ended
July 31, 2003; and

         (u)      all such other agreements, documents, instruments and writings
as are required to be delivered by Seller at or prior to the Closing Date
pursuant to this Agreement or that are otherwise reasonably necessary to
transfer to Buyer all of Seller's right, title and interest in, to and under the
Purchased Assets and the Assumed Liabilities or to exclude the Excluded Assets
or the Excluded Liabilities, in accordance with this Agreement.

         SECTION 4.3 DELIVERIES BY BUYER. At or prior to the Closing, Buyer
shall deliver the following:

         (a)      to such account or accounts as Seller shall designate in
writing no later than the last Business Day prior to the Closing Date, an
aggregate amount of cash equal to the Estimated Cash Purchase Price (net of
payments pursuant to subsection (b) below) by wire transfer of immediately
available U.S. funds;

         (b)      to such account or accounts as REJ Propane LLC shall designate
in writing no later than the last Business Day prior to the Closing Date, an
aggregate amount of cash required to pay off the liabilities and obligations of
Seller under the Credit Agreement, by wire transfer of immediately available
U.S. funds;

         (c)      to Seller, the Assumption Agreement, duly executed by Buyer;

         (d)      to Seller, the Intellectual Property Assignments, duly
executed by Buyer;

         (e)      Intentionally omitted;

         (f)      to Seller, the Escrow Agreement, duly executed by Buyer;

         (g)      to Seller, certified copies of the resolutions duly adopted by
Buyer's Board of Directors, or similar governing body, authorizing the
execution, delivery and performance of this Agreement and each of the
transactions contemplated hereby;

         (h)      to Seller, reasonably satisfactory evidence that the party
executing this Agreement and all other related agreements and documents for and
on behalf of Buyer is authorized to do so, including an incumbency certificate
of the general partner of Buyer;

         (i)      to Seller, an opinion of counsel to Buyer (which may be in
house counsel) substantially in the form of EXHIBIT K hereto;

         (j)      to Seller, all such other, agreements, documents, instruments
and writings as are required to be delivered by Buyer at or prior to the Closing
Date pursuant to this Agreement or which are otherwise reasonably necessary for
Buyer to assume the Purchased Assets and the

                                     - 16 -

<PAGE>

Assumed Liabilities or to exclude the Excluded Assets or the Excluded
Liabilities, in accordance with this Agreement.

                                    ARTICLE V
                    REPRESENTATIONS AND WARRANTIES OF SELLER

Seller hereby makes the following representations and warranties to Buyer:

         SECTION 5.1 ORGANIZATION; QUALIFICATION. Seller is a limited liability
company duly formed, validly existing and in full force and effect under the
laws of the State of Ohio and Seller has the requisite limited liability power
and authority to own, lease and operate its properties and to carry on its
business as it is now being conducted, except where the failure to be so
existing and in good standing or to have such power and authority could not be
reasonably likely to have a Material Adverse Effect.

         SECTION 5.2 AUTHORITY RELATIVE TO THIS AGREEMENT. Seller has full
limited liability company power and authority to enter into this Agreement and
each Ancillary Agreement and to carry out its obligations hereunder and
thereunder. The execution, delivery and performance of this Agreement and each
Ancillary Agreement by Seller and the consummation by Seller of the transactions
contemplated hereby and thereby have been duly authorized by all requisite
limited liability company action. This Agreement has been duly and validly
executed and delivered by Seller and (assuming this Agreement constitutes a
valid and binding obligation of Buyer) constitutes a valid and binding agreement
of Seller, enforceable against Seller in accordance with its terms, except as
such enforceability may be limited by bankruptcy, insolvency or similar laws
affecting the enforcement of creditor's rights generally. At the Closing, each
Ancillary Agreement executed and delivered by Seller will have been duly and
validly executed and delivered by Seller and (assuming each such Ancillary
Agreement constitutes a valid and binding obligation of Buyer) each such
Ancillary Agreement will constitute a valid and binding agreement of Seller,
enforceable against Seller in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency or similar laws
affecting the enforcement of creditor's rights generally.

         SECTION 5.3 CONSENTS AND APPROVALS. Except as set forth on SCHEDULE
5.3, no consent, approval or authorization of, or declaration, filing or
registration with, any Governmental Entity will be required to be made or
obtained by Seller in connection with the execution, delivery and performance of
this Agreement and the consummation of the transactions contemplated hereby,
except those already obtained and for consents, approvals, authorizations,
declarations, filings or registrations that if not obtained are not reasonably
likely to have a Material Adverse Effect. Except as set forth on SCHEDULE 5.3,
no consent, approval, waiver or authorization of any Person will be required in
connection with the execution, delivery and performance of this Agreement and
the consummation of the transactions contemplated hereby, except those already
obtained and for consents, approvals, waivers and authorizations that if not
obtained are not reasonably likely to have a Material Adverse Effect. The
parties acknowledge that Seller will not obtain the consents indicated in
SCHEDULE 5.3, other than those listed in subsection H thereof. It is not a
breach of this SECTION 5.3, and Seller shall have no liability arising from the
failure to obtain such third party consents, other than any failure relating to
the Contracts specified in subsection H of SCHEDULE 5.3.

                                     - 17 -

<PAGE>

         SECTION 5.4 NO VIOLATIONS. Assuming that the consents, approvals,
authorizations, declarations and filings referred in SCHEDULE 5.3, subsection H,
are obtained and in full force and effect and assuming that the consents,
approvals, authorizations, declarations and filings referred to as not being
required to be obtained in SCHEDULE 5.3 had been obtained or made, and the
conditions set forth in Article VIII shall have been satisfied, at the Closing
neither the execution, delivery or performance of this Agreement or the
Ancillary Agreements by Seller, nor the consummation by Seller of the
transactions contemplated hereby or thereby, nor compliance by Seller with any
of the provisions hereof or thereof will (a) conflict with or result in any
breach of any provisions of the Articles of Organization or Operating Agreement
of Seller, (b) result in a violation or breach of any of the terms, conditions
or provisions of any Contract or any material note, bond, mortgage, deed of
trust, security interest, indenture, license, contract, agreement, plan or other
instrument or obligation to which Seller is a party or by which the Purchased
Assets may be bound or related to the Business, or (c) violate any order, writ,
injunction, decree, statute, rule or regulation applicable to Seller, the
Purchased Assets or the Business, except in the case of clauses (b) or (c) for
violations, breaches, defaults, terminations, cancellations, accelerations,
creations, impositions, suspensions or revocations of which Seller does not have
Knowledge and that would not individually or collectively have a Material
Adverse Effect.

         SECTION 5.5 NO DEFAULT; COMPLIANCE WITH APPLICABLE LAWS; PERMITS.

         (a)      Seller is not in default or violation of any term, condition
or provision of (i) its Articles of Organization, Operating Agreement or other
organizational documents or (ii) any statute, law, rule, regulation, judgment,
decree, order, arbitration award, concession, grant, franchise, Permit or
license or approval applicable to the Business or by which the Purchased Assets
are bound, but excluding from the foregoing clause (ii) defaults or violations
of which Seller does not have Knowledge and that would not individually or
collectively have a Material Adverse Effect. Notwithstanding the foregoing, this
SECTION 5.5(a) shall not apply to Environmental Laws, which are exclusively the
subject of the representations and warranties in SECTION 5.10.

         (b)      Except as could not be reasonably likely to have a Material
Adverse Effect, the Permits constitute all permits, licenses, authorizations,
certificates, exemptions and approvals of Governmental Entities necessary or
proper for the current use, occupancy and operation of the Purchased Assets held
by Seller and the operation of the Business, and all such Permits are in full
force and effect. During the Seller Ownership Period, Seller has not received
any written notice from any Governmental Entity and no proceeding is pending or,
to Seller's Knowledge, threatened revoking, modifying or refusing to renew any
Permit or providing notice of violations under any Permit.

         SECTION 5.6 BOOKS AND RECORDS. The books, records and accounts of
Seller maintained during the Seller Ownership Period with respect to the
Business accurately and fairly reflect the transactions and the assets and
liabilities of Seller with respect to the Business. During the Seller Ownership
Period, Seller has not engaged in any transactions with respect to the Business,
maintained any bank account for the Business or used any of the funds of Seller
in the conduct of the Business except for transactions, bank accounts and funds
that have been and are reflected in the normally maintained books and records of
Seller. To Seller's Knowledge, the

                                     - 18 -

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books, records and accounts relating to the Business prior to July 2, 2003
accurately and fairly reflect the transactions, assets and liabilities of the
Business prior to July 2, 2003.

         SECTION 5.7 CONDUCT OF BUSINESS. SCHEDULE 5.7 and the other schedules
hereto set forth all actions of Seller taken during the Seller Ownership Period,
that, if taken after the date hereof, would violate SECTION 7.7 hereof.

         SECTION 5.8 NO UNDISCLOSED LIABILITIES. Except (a) for liabilities and
obligations incurred in the ordinary course during the Seller Ownership Period
and (b) for liabilities and obligations assumed pursuant to the Level Propane
Purchase Agreement and the Sale Order, Seller has not incurred any material
liabilities or obligations of any nature during the Seller Ownership Period that
would be required to be reflected or provided for in a balance sheet of the
Business prepared in accordance with generally accepted accounting principles or
would constitute a contingent liability or financing transaction not incurred in
the ordinary course of business that generally accepted accounting principles
would require to be disclosed in financial statements of Seller.

         SECTION 5.9 LITIGATION.

         (a)      Except as set forth in SCHEDULE 5.20 and to the Knowledge of
Seller, during the Seller Ownership Period, there have been no claims, charges,
charges, suits, arbitrations, mediations, inquiries, proceedings or
investigations by any Person or before any Government Entity (collectively
"Actions") pending or threatened against, relating to or affecting the Business,
the Purchased Assets or the membership interest of Seller.

         (b)      During the Seller Ownership Period, Seller has not received
notice of any orders or decrees of a court of competent jurisdiction outstanding
against Seller that materially restrict the operation of the Business in the
ordinary course or that could be reasonably likely to have a Material Adverse
Effect.

         SECTION 5.10 ENVIRONMENTAL COMPLIANCE.

         (a)      During the Seller Ownership Period, Seller has been in
compliance with all applicable Environmental Laws, including, without
limitation, possessing and complying with all Permits and other governmental
authorizations required for its operations under applicable Environmental Laws.
To Seller's Knowledge, there was no violation of or non-compliance with
Environmental Laws applicable to the Business prior to July 2, 2003 that could
reasonably be expected to have a Material Adverse Effect.

         (b)      During the Seller Ownership Period, Seller has not received
written notice from any Person alleging that it or the Business, the Purchased
Assets or Debtors have been or are in violation in any material respect of any
applicable Environmental Law or otherwise may be liable under any applicable
Environmental Law, which violation or liability remains unresolved. To Seller's
Knowledge, no such notice was delivered with respect to the Business or
Purchased Assets prior to July 2, 2003.

         (c)      During the Seller Ownership Period, there has been no deposit,
burial, disposal, release, spill or discharge of Hazardous Substances on, above,
underneath or from any of the

                                     - 19 -

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Real Property, except such minor releases, spills or discharges as individually
or collectively would not have a Material Adverse Effect. To Seller's Knowledge,
prior to the Seller Ownership Period, there was no deposit, burial, disposal,
release, spill or discharge of Hazardous Substances on, above, underneath or
from any of the Real Property, except such minor releases, spills or discharges
as individually or collectively would not have a Material Adverse Effect.

         SECTION 5.11 INTELLECTUAL PROPERTY.

         (a)      SCHEDULE 5.11(a) sets forth a complete and accurate list of
all material Intellectual Property Rights.

                  (i)      Seller owns or possesses adequate licenses or other
         legal rights to use all Intellectual Property Rights;

                  (ii)     during the Seller Ownership Period, no written claims
         or proceedings, or to Seller's Knowledge, written threat of claims,
         have been asserted by any third party against Seller relating to the
         use in the conduct of the Business of any Intellectual Property Rights
         or challenging or questioning the validity or effectiveness of any
         Intellectual Property Rights, and to Seller's Knowledge, during the
         Seller Ownership Period, the practice or use of the Intellectual
         Property rights has not infringed, misappropriated, violated or diluted
         the Intellectual Property Rights of any third party;

                  (iii)    no claims, demands or proceedings are pending by
         Seller charging any third party with infringement, misappropriation,
         dilution or violation of any Intellectual Property Rights, and, to
         Seller's Knowledge, no third party is misappropriating, infringing,
         diluting or violating any Intellectual Property Rights;

                  (iv)     during the Seller Ownership Period, no settlement
         agreements, consents, judgments, orders, forbearance to sue or similar
         obligations have been entered into or imposed that limit or restrict
         Seller's rights in and to any Intellectual Property Rights; and

                  (v)      during the Seller Ownership Period, Seller has been
         in material compliance with all applicable statutes, regulations and
         rules of any jurisdiction, relating to the export and sale of computer
         software and technology, including, without limitation, the U.S. Export
         Administration Regulations.

         (b)      SCHEDULE 5.11(b) lists all material agreements granting or
obtaining any right to use or practice any rights under any Intellectual
Property Rights, as licensee or licensor thereunder, including, without
limitation, license agreements, settlement agreements and covenants not to sue
other than commercially available off-the-shelf licensed software (collectively,
the "IP License Agreements"). To Seller's Knowledge, each IP License Agreement
is binding against Seller and in full force and effect and will continue to be
binding against Seller and in full force and effect immediately following the
consummation of the transactions contemplated by this Agreement except for such
failure to be binding and in full force and effect that would not have a
Material Adverse Effect.

                                     - 20 -

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         (c)      During the Seller Ownership Period, Seller has taken
commercially reasonable steps to maintain the confidentiality of its trade
secrets. To Seller's Knowledge: (i) there has been no misappropriation of any
material trade secrets or other material confidential Intellectual Property
Rights by any Person, (ii) no employee, independent contractor or agent of
Seller or any has misappropriated any trade secrets of any other Person in the
course of such performance as an employee, independent contractor or agent, and
(iii) no employee, independent contractor or agent of Seller is in default or
breach of any term of any material employment agreement, non-disclosure
agreement, assignment of invention agreement or similar agreement or contract
relating in any way to the protection, ownership, development, use or transfer
of Intellectual Property Rights.

         (d)      All material software and databases owned or leased by Seller
for use primarily in the Business are set forth in SCHEDULE 5.11(d). To Seller's
Knowledge, no such software and databases will be, by Seller: altered, redacted,
truncated, rendered inoperative or less than functional as of the Closing Date,
either in whole or in part, or in any other manner compromised by or immediately
after the consummation of the transaction contemplated hereby; and, except as
contemplated by this Agreement, Seller will require access to, use of or, in any
other manner, seek to exploit or employ any of the software and databases, in
whole or in part, following the consummation of the transactions contemplated
hereby. To Seller's Knowledge, Seller owns or is licensed to use and transfer
all such software and databases, and, to Seller's Knowledge, there are no other
databases, programs, tools, patches, upgrades, components, rights, permissions
or any other software that are not included in the Purchased Assets that will be
required for Buyer to employ such software and databases in the same manner as
Seller used such software and databases prior to the Closing Date, immediately
following the consummation of the transaction contemplated hereby. To Seller's
Knowledge, the databases being transferred to Buyer hereunder include all of the
databases that are fundamental to the Business.

         (e)      Except as set forth on SCHEDULE 5.11(e), to Seller's
Knowledge, all of the material information technology (including all
applications and software, hardware systems and networking and communications
assets, including databases) owned or leased by Seller and used primarily in the
operation of the Business (the "Information Technology") is owned by, or held
under an appropriate lease or license by, Seller, as the case may be, free and
clear of all Encumbrances (other than the terms of such leases or licenses and
Permitted Encumbrances); no material claims have been asserted, or, to Seller's
Knowledge, threatened by any third party against the use by any Seller of any
such Information Technology or challenging or questioning the validity or
effectiveness of any license or lease under which such technology is held and
the use of the Information Technology by Seller in the Business does not
infringe, misappropriate, violate or dilute any right of a third party.

         SECTION 5.12 BROKERS. No Person is entitled to any brokerage, financial
advisory, finder's fee or similar fee or commission payable in connection with
the transactions contemplated by this Agreement based upon arrangements made by
or on behalf of Seller.

         SECTION 5.13 TAXES. Seller has duly and timely filed with the
appropriate governmental agencies all Tax Returns required to be filed by it,
all of which have been accurately prepared in all material respects. All Taxes
due, owing and payable have been fully paid or duly provided for in the Closing
Date Working Capital. No claim for Taxes due is currently being contested by

                                     - 21 -

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Seller. All Taxes required to be withheld during the Seller Ownership Period
have been properly withheld and deposited or are reflected in the Closing Date
Working Capital.

         SECTION 5.14 FINANCIAL STATEMENTS. The complete financial statements of
the Business, prepared in accordance with accounting principles generally
accepted in the United States ("GAAP") and Regulation S-X of the U.S. Securities
and Exchange Commission (the "SEC"), as of and for the fiscal year ended June
30, 2003 ("Fiscal 2003 Financial Statement") and the financial data reported to
Buyer in furtherance of confirming gross average margin in excess of $0.47 per
gallon of LP Gas sold and volume (on a weather adjusted basis) of LP Gas sales
for the 12 month period ended July 31, 2003 in excess of 40,000,000 gallons were
prepared on the basis of the information contained in the books and records of
Seller and Debtors (to the extent made available to Seller by Debtors) and, to
Seller's Knowledge, fairly present in all material respects the financial
position and the results of operations of the Business for the respective fiscal
periods as of the respective dates therein set forth. The Accounts Receivable
arising during the Seller Ownership Period have arisen from bona fide sales
transactions in the ordinary course of business and are payable on ordinary
trade terms.

         SECTION 5.15 TITLE TO PROPERTY. On the Closing Date, Seller shall have
assigned, transferred and delivered the Purchased Assets to Buyer free and clear
of all Encumbrances imposed by Seller or that arose during the Seller Ownership
Period other than Permitted Encumbrances. Buyer will have received sole, good
and marketable title to, or, if applicable, a valid leasehold interest in, each
of the Purchased Assets free and clear of Encumbrances imposed by Seller or that
arose during the Seller Ownership Period (other than Permitted Encumbrances).
The Purchased Assets transferred to Buyer include all of the tangible and
intangible assets that Seller acquired from Debtors under the Sale Order other
than assets, such as Inventory, expended in the ordinary course of business by
Seller during the Seller Ownership Period, and the other changes in the
Purchased Assets as reflected in the Schedules hereto. To Seller's Knowledge,
except as set forth in SCHEDULE 5.15, the Purchased Assets are in good operating
condition and repair, ordinary wear and tear excepted.

         SECTION 5.16 REAL PROPERTY LEASES. On the Closing Date, Seller shall
have assigned, transferred and delivered the Real Property Leases to Buyer and
Buyer will have received a valid leasehold interest (to the extent transferred
to Seller pursuant to the Sale Order or entered into by Seller during the Seller
Ownership Period) in each of the Real Property Leases free and clear of all
Encumbrances imposed by Seller or that arose during the Seller Ownership Period
other than Permitted Encumbrances. Set forth on SCHEDULE 5.16 is a complete and
correct list of all of the real property leases, including through-put leases
and subleases, used in the operation of the Business, which are free and clear
of all Encumbrances that arose during the Seller Ownership Period other than
Permitted Encumbrances, that Seller acquired from Debtors under the Sale Order
or entered into during the Seller Ownership Period (the "Real Property Leases"),
setting forth the address and landlord for each such Real Property Lease. To
Seller's Knowledge, complete and correct copies of the Real Property Leases
(including all documents supplemental or ancillary thereto) have been delivered
to or made available for inspection by Buyer and, except as disclosed to Buyer
in writing, to Seller's Knowledge, none of the Real Property Leases have been
modified in any material respect. Subject to the provisions of the applicable
Real Property Lease, to Seller's Knowledge, each Real Property Lease grants the
tenant under such lease the exclusive right to use and occupy the premises
demised thereunder. To Seller's

                                     - 22 -

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Knowledge, Seller enjoys peaceful and undisturbed possession under each of the
Real Property Leases under which it is a tenant.

         SECTION 5.17 OWNED REAL PROPERTY. Set forth on SCHEDULE 5.17 is a
complete and correct list of all owned real property that Seller acquired from
Debtors under the Sale Order or acquired during the Seller Ownership Period
(collectively, the "Owned Real Property") setting forth the address of each such
parcel of property.

         SECTION 5.18 REAL PROPERTY. Except where the following would not have a
Material Adverse Effect:

         (a)      Seller has no Knowledge that the use and operation of the
Owned Real Property and the Real Property Leases (for the purposes of this
SECTION 5.18 only, the "Real Property") by Seller violates any instrument of
record or agreement affecting the Real Property;

         (b)      Seller has not received any written notice of any
non-compliance or any violations issued by any Governmental Entity relating to
(i) any certificate, permit or license or any agreement, easement or other right
which is necessary to permit the lawful use and operation of the buildings and
improvements on any of the Real Property or any pending threat of modification
or cancellation of any of the same; (ii) any violation of any federal, state,
municipal, provincial or local law, ordinance, order, regulation or requirement
with respect to the Real Property, and (iii) any material structural defects
relating to any Real Property;

         (c)      Seller has no Knowledge that a casualty has occurred with
respect to any Real Property for which there is no insurance in effect covering
the cost of the restoration;

         (d)      Seller has no Knowledge that (i) any condemnation proceeding
is pending or threatened with respect to any Real Property or (ii) any violation
of any zoning, building or similar law, code, ordinance, order or regulation has
resulted from the maintenance, operation or use of any Real Property;

         (e)      Seller has not received actual written notice from any
Governmental Entity or any other person that Seller's current use of the Real
Property is dependent on a nonconforming use or other governmental approval the
absence of which would materially limit the use of such properties or assets
held for use in connection with, necessary for the conduct of, or otherwise
material to, the Business;

         (f)      except as set forth in SCHEDULE 5.18(f), Seller has not
entered into any contract for sale or other disposition of any interest in the
Real Property other than this Agreement;

         (g)      except as set forth in SCHEDULE 5.18(g) and except for any
amounts currently subject to being disputed in good faith by Seller in the
ordinary course (for which reserves have been reflected in Closing Date Working
Capital), Seller is current with respect to the payment of any rent, service
charge, insurance, rates, taxes or other expenses in respect of any of the Real
Property, in each case accruing after July 2, 2003;

         (h)      in relation to each Real Property Lease: (i) Seller has no
Knowledge that a covenant, condition or agreement contained in the relevant
lease, on the part of the landlord or

                                     - 23 -
<PAGE>
the tenant, accruing after July 2, 2003 has not been complied with in all
material respects and (ii) Seller has received no written notice or complaint
alleging any breach or any refusal to accept rent;

         (i)      Seller has not entered into any lease or sublease granting any
Person the right to occupy all or any portion of the Real Property. Neither
Seller nor any Affiliates of Seller has granted any option to purchase, right of
first refusal, offer or other similar rights to any Person; and

         (j)      Seller has provided or made available to Buyer complete copies
of all structural, mechanical, electric and environmental reports relating to
the Real Property which are in Sellers' possession or under its control.

         SECTION 5.19 ACCURACY. To Seller's Knowledge, no representation or
warranty made by Seller in this Agreement or pursuant hereto (a) contains any
untrue statement of any material fact, or (b) omits to state any fact that is
necessary to make the statements made, in the context in which made, not false
or misleading in any material respect.

         SECTION 5.20 DISCLOSURE. SCHEDULE 5.20 sets forth additional
disclosures relating to the Business and the matters disclosed therein are not
and shall not be deemed a violation of any of the foregoing representations and
warranties.

         SECTION 5.21 ACTIVE CUSTOMERS. The customer count reported to Buyer on
the Closing Date, calculating the number of Active Customers of 34,799 was
prepared on the basis of the information contained in the books and records of
Seller and Debtors (to the extent made available to Seller by Debtors) and, to
Seller's Knowledge, fairly present in all material respects the number of Active
Customers as of September 25, 2003.

         SECTION 5.22 CUSTOMER DEPOSITS, ADVANCES AND CREDITS. The list of
customer deposits, advances and credits set forth in SCHEDULE 5.22 was prepared
on the basis of the information contained in the books and records of Seller and
Debtors (to the extent made available to Seller by Debtors) and, to Seller's
Knowledge, fairly presents in all material respects the customer deposit,
advance and credit liability of Seller as of the Closing Date.

         SECTION 5.23 LIMITED WARRANTIES. Buyer hereby acknowledges and agrees
that, except as expressly set forth in this Agreement, Seller makes no
representations or warranties whatsoever, express or implied, with respect to
any matter relating to the Purchased Assets (including, without limitation,
income to be derived or expenses to be incurred in connection with the Purchased
Assets), the physical condition of any personal property comprising a part of
the Purchased Assets or that is the subject of any Contract, the physical
condition of the Real Property, the value of the Purchased Assets (or any
portion thereof), the terms, amount, validity, collectibility or enforceability
of any Purchased Assets or Assumed Liabilities, the merchantability or fitness
of the personal property or any other portion of the Purchased Assets for any
particular purpose or any other matter or thing relating to the Purchased Assets
or the Business (or any portion thereof). WITHOUT IN ANY WAY LIMITING THE
FOREGOING, SELLER HEREBY DISCLAIMS ANY WARRANTY (EXPRESS OR

                                     - 24 -

<PAGE>

IMPLIED) OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE AS TO ANY
PORTION OF THE PURCHASED ASSETS.

                                   ARTICLE VI
                     REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer hereby makes the following representations and warranties to Seller:

         SECTION 6.1 ORGANIZATION. Buyer is a limited partnership duly formed,
validly existing and in good standing under the laws of the State of Delaware
and Buyer has all requisite power and authority to own, lease and operate its
properties and to carry on its business as it is now being conducted, except
where the failure to be so existing and in good standing or to have such power
and authority could not be reasonably likely to have a Material Adverse Effect.

         SECTION 6.2 AUTHORITY RELATIVE TO THIS AGREEMENT. Buyer has full
limited partnership power and authority to enter into this Agreement and each
Ancillary Agreement and to carry out its obligations hereunder and thereunder.
The execution, delivery and performance of this Agreement and each Ancillary
Agreement by Buyer and the consummation by Buyer of the transactions
contemplated hereby and thereby have been duly authorized by all requisite
limited partnership action. This Agreement has been duly and validly executed
and delivered by Buyer and (assuming this Agreement constitutes a valid and
binding obligation of Seller) constitutes a valid and binding agreement of
Buyer, enforceable against Buyer in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency or similar laws
affecting the enforcement of creditor's rights generally. At the Closing, each
Ancillary Agreement executed and delivered by Buyer will have been duly and
validly executed and delivered by Buyer and (assuming each such Ancillary
Agreement constitutes a valid and binding obligation of Seller) each such
Ancillary Agreement will constitute a valid and binding agreement of Buyer,
enforceable against Buyer in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency or similar laws
affecting the enforcement of creditor's rights generally.

         SECTION 6.3 BROKERS. No Person is entitled to any brokerage, financial
advisory, finder's or similar fee or commission payable in connection with the
transactions contemplated by this Agreement based upon arrangements made by or
on behalf of Buyer or its Affiliates.

                                  ARTICLE VII
                            COVENANTS OF THE PARTIES

         SECTION 7.1 ACCESS TO INFORMATION; MAINTENANCE OF RECORDS.

         (a)      Intentionally omitted.

         (b)      Intentionally omitted.

         (c)      For a period of two years after the Closing Date, each party
and its representatives shall have reasonable access to all of the books and
records relating to the Business or the Purchased Assets in the possession of
any other party, to the extent that such access may reasonably be required by
such party in connection with the Assumed Liabilities or other matters

                                     - 25 -

<PAGE>

relating to or affected by the operation of the Business and the Purchased
Assets. Such access shall be afforded by the party in possession of such books
and records upon receipt of reasonable advance notice and during normal business
hours; provided, however, that: (i) any such access shall be conducted in such a
manner as not to interfere unreasonably with the operation of the business of
any party or its Affiliates, (ii) no party shall be required to take any action
that would constitute a waiver of the attorney-client privilege or would
threaten disclosure of Buyer's proprietary or confidential business information
and (iii) no party need supply the other party with any information that such
party is under a legal obligation not to supply and commercially reasonable
efforts have been used to remove or waive the legal restriction. The party
exercising this right of access shall be solely responsible for any costs or
expenses incurred by it pursuant to this SECTION 7.1(a). If the party in
possession of such books and records shall desire to dispose of any such books
and records upon or prior to the expiration of such period, such party shall,
prior to such disposition, give the other party, at such other party's expense,
a reasonable prior notice and opportunity to segregate and remove such books and
records as such other party may select.

         (d)      Seller agrees to take commercially reasonable steps as
requested by Buyer from time-to-time to obtain Plante & Moran, PLLC's consent
and cooperation to permit and enable Buyer to include the Fiscal 2003 Financial
Statement in Buyer's filings with the Securities and Exchange Commission
(including assistance in obtaining any necessary accountants' consents). Seller
shall provide (and cause appropriate officers to provide) such reasonable and
accurate certifications supporting such financial statements as are customarily
required by independent auditors and as are required to comply with the
regulations of the Securities and Exchange Commission and applicable law. Seller
acknowledges and agrees that time is of the essence in the performance of these
covenants.

         (e)      Seller agrees that it possesses certain data and knowledge of
the Business prior to the Closing Date which is proprietary in nature and
confidential (the "Confidential Information"), including, without limitation,
all customer names, addresses, locations and other identifying information, any
confidential or proprietary methods, record, data, trade secret, pricing policy,
bid amount, bid strategy, rate, structure, personnel policy, method or practice
of soliciting or obtaining or doing business, or any other confidential or
proprietary information whatsoever relating to the Business and the Purchased
Assets. Seller agrees that, except as otherwise agreed between Buyer and Seller,
Seller will not reveal, divulge, or make known to any Person (other than to
Buyer or Buyer's authorized representatives) or use for its own account any
Confidential Information, except for disclosure: (i) to Seller's officers,
employees, members, managers, attorneys, accountants, consultants (including
financial consultants), advisors or agents or those of any of its affiliates in
connection with negotiating and/or executing this Agreement and the Ancillary
Agreements and consummating the sale of the Purchased Assets, (ii) to the extent
Seller determines in good faith that such disclosure is required by, or
necessary to avoid committing a violation of law or any rule or regulation and
(iii) as necessary to enforce Seller's rights hereunder.

         SECTION 7.2 EXPENSES. Except as set forth in SECTION 3.6 and to the
extent otherwise specifically provided herein, whether or not the transactions
contemplated hereby are consummated, all costs and expenses incurred in
connection with this Agreement and the transactions contemplated hereby shall be
borne by the party incurring such costs and expenses.

                                     - 26 -

<PAGE>

         SECTION 7.3 FURTHER ASSURANCES. Subject to the terms and conditions of
this Agreement, each of the parties hereto shall use commercially reasonable
efforts to take, or cause to be taken, all action, and to do, or cause to be
done, all things reasonably necessary, proper or advisable under applicable laws
and regulations to consummate and make effective the sale of the Purchased
Assets in accordance with this Agreement, including, without limitation, using
commercially reasonable efforts to ensure timely satisfaction of the conditions
precedent to each party's obligations hereunder. Neither Seller, on the one
hand, nor Buyer, on the other hand, shall, without the prior written consent of
the other party, take any action that would reasonably be expected to prevent or
materially impede, interfere with or delay the transactions contemplated by this
Agreement. From time to time on or after the Closing Date, Seller shall, at its
own expense, execute and deliver such documents to Buyer as Buyer may reasonably
request in order to more effectively vest in Buyer Seller's title to the
Purchased Assets. From time to time after the date hereof, Buyer shall, at its
own expense, execute and deliver such documents to Seller as Seller may
reasonably request in order to more effectively consummate the sale of the
Purchased Assets and the assumption and assignment of the Assumed Liabilities in
accordance with this Agreement.

         SECTION 7.4 COOPERATION ON TAX MATTERS. Buyer and Seller agree to
furnish or cause to be furnished to each other, upon request, as promptly as
practicable, such information and assistance relating to the Business and the
Purchased Assets (including access to books and records) as is reasonably
necessary for the preparation and filing of all Tax Returns in connection with
matters relating to (or affected by) the operations of Seller prior to the
Closing, including, without limitation, the preparation for any audit by any
Taxing Authority and the prosecution or defense of any claim, suit or proceeding
relating to any Tax. Notwithstanding anything to the contrary herein, Buyer and
Seller shall retain all books and records with respect to Taxes pertaining to
the Purchased Assets for a period of at least six years following the Closing
Date. At the end of such period, each party shall provide the other with at
least 30 days prior written notice before destroying any such books and records,
during which period the party receiving such notice can elect to take
possession, at its own expense, of such books and records. The requesting party
shall bear all costs and expenses of the other party furnishing or causing to be
furnished such information or assistance.

         SECTION 7.5 EMPLOYEES.

         (a)      Buyer agrees to make offers of employment on or before the
Closing Date, effective as of the Closing Date, to a sufficient number of Seller
Employees such that the termination of employment of the remaining employees by
Seller shall not be subject to the notification provisions of the WARN Act or
any similar applicable state laws; such offers by Buyer shall include terms and
conditions with respect to each individual Seller Employee made an offer that
are, taken as a whole, no less favorable to such Seller Employee than the terms
and conditions as exist between Seller and such Seller Employee as of the date
hereof. All of the employees who have accepted Buyer's offers of employment made
pursuant to this SECTION 7.5 (the "Hired Employees") shall become employees of
Buyer as of 12:01 A.M. (local time) on the Closing Date (with the intent that no
period of unemployment shall have occurred with respect to any such Hired
Employees), and all of the Hired Employees will cease to be employees of the
Seller as of 12:01 A.M. (local time) on the Closing Date. Seller shall provide
the Hired Employees with a W-2 form as soon as practicable after the Closing.
Buyer shall be solely

                                     - 27 -

<PAGE>

responsible for maintaining workers' compensation insurance following the
Closing Date and for all costs and expenses of all workers' compensation claims
made by Hired Employees after the Closing Date for occurrences after the Closing
Date. Seller shall be solely responsible for any and all severance pay and
benefits that become due to Seller Employees who are not Hired Employees or who
do not receive offers of employment from Buyer as provided above. Buyer shall
not be responsible for any severance pay and benefits with respect to any Seller
Employees who do not become Hired Employees, other than as a result of the WARN
Act.

         (b)      Seller shall at its own expense fully vest each Hired Employee
under Seller's 401(k) retirement plan, terminate any related annuity contract
and such plan, and take such other actions as are necessary to enable the Hired
Employees to roll-over their investments into Buyer 401(k) retirement plan.

         (c)      Upon Closing, Buyer shall provide health care continuation
coverage under Buyer's plans in a manner that satisfies duties owed to Hired
Employees, terminated employees, COBRA beneficiaries and M and A qualified
beneficiaries of the Business, as the case may be, under the provisions of
Treasury Regulation Section 54.4980B-9 Q. and A. 6(a)(1) and Q. and A. 7. Seller
shall reimburse Buyer for any reasonable administrative expenses incurred by
Buyer in providing these benefits in excess of the 2% surcharge paid by the
beneficiaries. Seller shall reimburse such charges within 30 days after receipt
by Seller of an invoice from Buyer with reasonable detail with respect to such
charges.

         SECTION 7.6 NAME CHANGE. Seller agrees that at the Closing, or as soon
as practicable thereafter (but in no event later than ten days after the Closing
Date), it (i) shall cease to use the corporate name "Horizon Propane LLC," the
trade name "Horizon Propane" or any names similar thereto and (ii) shall file
amendments to its formation documents to change its name to a name other than as
described above or derivations thereof.

         SECTION 7.7 CONDUCT OF BUSINESS BY SELLER. Seller covenants and agrees
that, except (i) as contemplated by this Agreement and required by the
transactions contemplated hereby and (ii) with the prior written consent of
Buyer:

         (a)      Seller shall (i) use commercially reasonable efforts to
conduct the Business only in the ordinary course, including continuing to pay
all obligations when due, adequately funding the Business and performing in all
material respects all of its obligations under all agreements and instruments
relating to or affecting the Business or the Purchased Assets, (ii) use good
faith efforts to maintain good relations with the customers of and vendors to
the Business and with employees of the Business and (iii) maintain its company
status in full force and effect in the State of Ohio; and

         (b)      Seller shall not take the following actions with respect to
the Business or the Purchased Assets unless disclosed in the schedules to this
Agreement or with the consent of Buyer, which consent shall not be unreasonably
withheld, conditioned or delayed (considered without regard to the measures
taken by Seller pursuant to this Agreement and the Ancillary Agreements):

                                     - 28 -

<PAGE>

                  (i)      pledge, mortgage, sell, lease or dispose of any of
         the Purchased Assets (except in the ordinary course of business);

                  (ii)     effect any increases in, or additions to, the
         compensation or benefits payable to any of the Seller Employees, other
         than in the ordinary course of business;

                  (iii)    fail to maintain books, records and accounts of
         Seller;

                  (iv)     agree to any material amendment to a Contract, except
         in the ordinary course of business or as is necessary for Seller to
         meet the conditions or covenants set forth in this Agreement;

                  (v)      change any of the accounting methods or procedures
         used by Seller unless required by GAAP or applicable law;

                  (vi)     bring, settle, compromise or waive any action or
         legal right affecting the title, validity or value of the Purchased
         Assets;

                  (vii)    amend, vary, terminate or waive any real property
         lease or rights thereunder;

                  (viii)   grant or accept any lease in respect of the Real
         Property;

                  (ix)     except in the ordinary course of business, enter into
         any lease, sublease, license, broker agreement, service contract,
         management contract, utility agreement or other agreement relating to
         any of the Real Property that would be binding on the applicable
         property or Buyer after the Closing;

                  (x)      enter into forward commitments with various customers
         that at any given time require Seller to deliver an aggregate of
         500,000 gallons or more of LP Gas at fixed prices without also entering
         into corresponding Hedge Arrangements (all of which shall be delivered
         to Buyer at least one Business Days prior to the Closing Date);

                  (xi)     authorize or enter into an agreement to do any of the
         foregoing.

         Seller shall provide Buyer with written notice of any of the foregoing
         actions.

            (c)      Seller shall not amend the Level Propane Purchase Agreement
to be assigned to Buyer.

         SECTION 7.8 INSURANCE. Until the Closing, Seller shall use its
commercially reasonable efforts to maintain in effect all of the existing
contracts or policies of insurance to the extent relating to the Business and/or
the Purchased Assets. With respect to any damage or destruction of any of the
Purchased Assets prior to the Closing Date for which Seller would be entitled to
assert a claim for recovery under any contract or policy of insurance maintained
by or for the benefit of Seller in respect of the Purchased Assets, at the
request of Buyer, Seller shall use commercially reasonable efforts to assert one
or more claims under such insurance covering such

                                     - 29 -

<PAGE>

damage or destruction. In the case of any damage or destruction of the Purchased
Assets occurring prior to the Closing Date that is covered by insurance
maintained by Seller, Seller shall deliver all insurance proceeds realized
therefrom to Buyer at Closing or as soon thereafter as collected by Seller.

         SECTION 7.9 PUBLIC ANNOUNCEMENT. Prior to the Closing, all press
releases and other public announcements concerning this Agreement and the
transactions contemplated hereby must be approved by Buyer and Seller prior to
publication, except with respect to any releases or announcements that may be
required by applicable laws, SEC regulations, court process or obligations
pursuant to any listing agreement with any national securities exchange or
interdealer quotation system. Seller shall promptly provide Buyer with copies of
each announcement disseminated to Seller's employees generally regarding the
transactions contemplated by this Agreement and the Ancillary Agreements,
whether such announcements are made prior to, contemporaneously with or after
the Closing Date.

         SECTION 7.10 REGULATORY FILINGS. Unless otherwise mutually agreed in
writing, each of the parties shall use all commercially reasonable efforts to
(a) obtain, and to cooperate with the other party in obtaining, all reviews,
authorizations, consents, orders or approvals of Governmental Entities that may
be or become necessary in connection with the consummation of the transactions
contemplated by this Agreement prior to or after the Closing and (b) defend (in
a commercially reasonable manner) against any effort to enjoin consummation of
the transactions contemplated hereby, including prompt appeal of any adverse
decision or order by any Governmental Entity.

         SECTION 7.11 REJECTION AND ASSUMPTION OF CONTRACTS. Seller agrees that
from the date of this Agreement through the Closing Date it shall not: (i) amend
or seek to amend the Sale Order to reduce the period for acceptance or rejection
of Contracts; (ii) reject Contracts in accordance with the Sale Order without
the prior written consent of Buyer; or (iii) finally assume any Contracts to be
assumed by Buyer under this Agreement in accordance with the Sale Order without
the prior written consent of Buyer, it being understood that Buyer is relying on
its ability to finally assume or reject Contracts as assignee of Seller under
the Sale Order through October 31, 2003.

         SECTION 7.12 UTILITIES. To the extent not included as a liability in
the calculation of Closing Date Working Capital, Seller shall reimburse Buyer
for all utility costs incurred by the Business prior to, and allocable to the
period prior to, the Closing Date, which costs are paid by Buyer after the
Closing Date. Payments to Buyer pursuant to this SECTION 7.12 shall be made by
Seller within 10 days after receipt by Seller of a calculation prepared by Buyer
detailing the amount owed by Seller hereunder and a copy of the invoice
detailing the total utility costs for the period of such invoice. The
calculation of the amount Seller shall be required to pay shall be based on the
total cost reflected in the utility invoices multiplied by a fraction, the
numerator of which shall be the number of days of such utility invoice period
that occurred prior to the Closing Date and the denominator of which shall be
the total number of days of such utility invoice period.

         SECTION 7.13 ACCESS TO REAL PROPERTY. Seller hereby grants Buyer a
no-fee license, commencing on the Closing Date, to leave the Purchased Assets at
the Herkimer (Ridgefield

                                     - 30 -

<PAGE>

Springs), New York facility and the Cadillac, Michigan facility not being
acquired by Buyer hereunder, for a period of 90 days after the Closing Date and
hereby grants Buyer access to the real property for such 90-day period so that
Buyer may remove the Purchased Assets. Buyer's access to such real property
shall be at Buyer's own risk, and Buyer covenants with Seller that it shall use
reasonable care when exercising its right to access under this SECTION 7.13,
shall not cause any dangerous condition on the real property to exist after the
expiration of such 90-day period that did not exist prior to the Closing Date
and shall be responsible for any acts or omissions that it takes or fails to
take on such real property. The obligations set forth in this SECTION 7.13 shall
survive the Closing.

         SECTION 7.14 SERVICE OF CUSTOMERS. Buyer covenants with Seller (with no
intention to create any third-party beneficiary rights) to service all Active
Customers, in accordance with Buyer's customary terms and conditions, to the
extent that, and only for so long as, Buyer deems it commercially reasonable to
do so. Notwithstanding the foregoing, nothing in this Section is intended to
limit Buyer's rights to assume or not assume contracts in its sole discretion
under the Level Propane Purchase Agreement and the Sale Order or to expand the
scope of Assumed Liabilities specified in SECTION 2.3.

                                  ARTICLE VIII
                              CONDITIONS TO CLOSING

         SECTION 8.1 CONDITIONS TO OBLIGATIONS OF BUYER. The obligation of Buyer
to effect the purchase of the Purchased Assets and to consummate the
transactions contemplated hereby shall be subject to the fulfillment at or prior
to the Closing Date of the following conditions:

         (a)      no action, suit or other proceeding shall be pending before
any court, tribunal or Governmental Entity seeking or threatening to restrain or
prohibit the consummation of the transactions contemplated by this Agreement, or
seeking to obtain substantial damages in respect thereof, or involving a claim
that consummation thereof would result in the violation of any law, decree or
regulation of any Governmental Entity having appropriate jurisdiction;

         (b)      Seller shall have made all required deliveries pursuant to
SECTION 4.2 of this Agreement and shall have performed in all material respects
all covenants and agreements required to be performed by it under this Agreement
on or prior to the Closing Date;

         (c)      Seller shall have delivered all necessary third party consents
(including those of the equipment lessors) and waivers and governmental
approvals to the transactions contemplated hereby and specified in SCHEDULE 5.3
subsection H;

         (d)      Seller shall not have breached in any material respect any of
Seller's representations and warranties contained herein.

         SECTION 8.2 CONDITIONS TO OBLIGATIONS OF SELLER. The obligation of
Seller to effect the sale of the Purchased Assets and to consummate the
transactions contemplated hereby shall be subject to the fulfillment at or prior
to the Closing Date of the following conditions:

         (a)      no action, suit or other proceeding shall be pending before
any court, tribunal or Governmental Entity seeking or threatening to restrain or
prohibit the consummation of the

                                     - 31 -

<PAGE>

transactions contemplated by this Agreement, or seeking to obtain substantial
damages in respect thereof, or involving a claim that consummation thereof would
result in the violation of any law, decree or regulation of any Governmental
Entity having appropriate jurisdiction; and

         (b)      Buyer shall have made all required deliveries pursuant to
SECTION 4.3 of this Agreement and shall have performed in all material respects
all covenants and agreements required to be performed by it under this Agreement
on or prior to the Closing Date.

                                   ARTICLE IX
                           TERMINATION AND ABANDONMENT

         SECTION 9.1 TERMINATION. This Agreement may be terminated at any time
prior to the Closing by:

         (a)      mutual written consent of Seller and Buyer;

         (b)      Buyer, if there has been a material violation or material
breach by Seller of any covenant, representation or warranty made by it
contained in this Agreement, and such violation or breach, if susceptible to
cure, has not been cured by Seller within five Business Days of receipt of
written notice thereof or waived by Buyer;

         (c)      Seller, if there has been a material violation or material
breach by Buyer of any covenant, representation or warranty made by it contained
in this Agreement, and such violation or breach, if susceptible to cure, has not
been cured by Buyer within five Business Days of receipt of written notice
thereof or waived by Seller;

         (d)      Seller or Buyer, if a condition to its respective performance
set forth in Article VIII hereof shall have failed in any material respect; or

         (e)      Seller or Buyer, if the Closing shall not have occurred on or
prior to October 3, 2003; provided, however, that Buyer or Seller, as the case
may be, shall not be entitled to terminate this Agreement pursuant to this
SECTION 9.1(e) if the failure of the Closing to occur on or prior to such date
results primarily from such party itself breaching any representation, warranty
or covenant contained in this Agreement in any material respect.

         SECTION 9.2 PROCEDURE AND EFFECT OF TERMINATION. In the event of
termination of this Agreement and abandonment of the transactions contemplated
hereby by either or both of the parties pursuant to SECTION 9.1, written notice
thereof shall forthwith be given by the terminating party to the other party and
this Agreement shall terminate and the transactions contemplated hereby shall be
abandoned, without further action by any of the parties hereto. If this
Agreement is terminated by either or both of the parties pursuant to SECTION 9.1
or otherwise, all Confidential Information (as defined in the Confidentiality
Agreement) of Seller shall be returned to Seller, and all Confidential
Information of Buyer shall be returned to Buyer. If this Agreement is
terminated, either party hereto may seek any and all equitable remedies
available to it under applicable law, including, without limitation, specific
enforcement of any covenant or agreement herein, in any court of competent
jurisdiction.

                                     - 32 -

<PAGE>

                                    ARTICLE X
                                 INDEMNIFICATION

         SECTION 10.1 SURVIVAL OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS.

         (a)      The representations and warranties of Buyer and Seller in this
Agreement, the Ancillary Agreements and in any other agreements, documents or
certificates executed or delivered by Buyer or Seller pursuant to this Agreement
or in connection with the transactions contemplated by this Agreement shall
survive the execution, delivery and performance of this Agreement and such other
documents and the Closing and remain in full force and effect until the December
31, 2004 (which in no way limits Buyer's right to recover with respect to any
breach of representation or warranty discovered prior to the expiration date),
with the exception of the warranties set forth in SECTION 5.10, which shall
survive indefinitely. All representations and warranties of Buyer, on the one
hand, and Seller, on the other hand, set forth in this Agreement, the Ancillary
Agreements and in the other documents contemplated hereby shall be deemed to
have been made again by Buyer or Seller, as the case may be, at and as of the
Closing (except for representations and warranties made as of a specified date,
which shall be deemed to have been made only as of the specified date). This
SECTION 10.1 shall not limit any covenant or agreement of the parties hereto
that by its terms contemplates performance after any Closing or after the
termination of this Agreement.

         (b)      Unless a specified period is set forth in this Agreement (in
which event such specified period will control), all covenants and agreements of
Buyer and Seller in this Agreement, the Ancillary Agreements and in any other
agreements, documents or certificates executed or delivered by Buyer or Seller
pursuant to this Agreement or in connection with the transactions contemplated
by this Agreement shall survive the execution, delivery and performance of this
Agreement and such other documents and the Closing and remain in full force and
effect until performed in full. Except as expressly set forth in this Article X,
the covenants and agreements contained in this Article X shall in all events
survive the Closing without time limit.

         SECTION 10.2 LIMITATIONS ON INDEMNIFICATION.

         (a)      Buyer shall not be entitled to make a claim against Seller for
indemnification under SECTION 10.3(a)(other than under subsection (iv) thereof)
unless and until the aggregate amount of claims that may be asserted for
Indemnifiable Losses pursuant to SECTION 10.3(a) (other than under subsection
(iv) thereof) exceeds $50,000, in which event the indemnity provided for in
SECTION 10.3(a) shall be effective with respect to all of the Indemnifiable
Buyer Losses without regard to such threshold. Except as set forth below,
individual claims by LP Gas customers of the Business under $500 shall not
constitute Indemnifiable Buyer Losses or be considered for purposes of
determining whether the $50,000 threshold has been exceeded. Notwithstanding the
foregoing, if a group of individual claims by LP Gas customers arise from a
common underlying event or circumstance, which therefore comprises a pattern of
substantially similar claims, then the aggregate claims of those LP Gas
customers shall be Indemnifiable Buyer Losses and shall count toward the $50,000
threshold referred to above. By way of illustration, if fifty different LP Gas
customers make successful claims, each being less than $500 but each based on a
common underlying event or circumstance that is shared by such LP

                                     - 33 -

<PAGE>

Gas customers (such as a particular attorney general determination), then the
claims do count toward the threshold and Buyer shall be entitled to bring a
claim for Indemnifiable Buyer Losses once the $50,000 is satisfied.

         (b)      Seller shall not be entitled to make a claim against Buyer for
indemnification under SECTION 10.3(b) unless and until the aggregate amount of
claims that may be asserted for Indemnifiable Losses pursuant to SECTION 10.3(b)
exceeds $50,000, in which event the indemnity provided for in SECTION 10.3(b)
shall be effective with respect to all of the Indemnifiable Buyer Losses without
regard to such threshold.

         (c)      Notwithstanding any other provision of this Agreement to the
contrary, the maximum aggregate liability of Seller for Indemnifiable Buyer
Losses under SECTION 10.3(a) shall be an amount equal to the $15.5 million,
except that Seller's liability for Indemnifiable Buyer Losses resulting from the
fraud or the willful misconduct of Seller shall be unlimited and the $15.5
million cap shall not apply to such cases involving fraud or willful misconduct
or a breach of SECTION 5.2.

         (d)      Notwithstanding any other provision of this Agreement to the
contrary, the maximum aggregate liability of Buyer for Indemnifiable Seller
Losses under SECTION 10.3(b) shall be an amount equal to $15.5 million, except
that Buyer's liability for Indemnifiable Seller Losses resulting from the fraud
or the willful misconduct of Buyer shall be unlimited and the $15.5 million cap
shall not apply to such cases involving fraud or willful misconduct or a breach
of SECTION 6.2.

         (e)      From and after the Closing, as between Seller and the Seller
Indemnitees, on the one hand, and Buyer and Buyer Indemnitees, on the other
hand, the remedies set forth in this Article X shall be the exclusive remedies
with respect to this Agreement, other than in the case of fraud or willful
misconduct, and other than equitable relief.

         (f)      No Indemnity Payment shall be required to be paid for any
Indemnifiable Loss under SECTION 10.3 unless notice of such claim is given
pursuant to SECTION 10.4 prior to December 31, 2004, except for violations of
the representations and warranties contained in SECTION 5.10, which shall
survive indefinitely.

         (g)      Prior to seeking indemnification under SECTION 10.3, an
Indemnitee shall deliver appropriate claims to any relevant insurer or third
party obligated to indemnify such Indemnitee with respect to the Loss giving
rise to such claim. An Indemnitee shall permit the Indemnifying Party to assert
any such claims and shall cooperate, at the Indemnifying Party's expense, with
the Indemnifying Party's prosecution of such claims. The amount of any Losses
for which indemnification is provided under SECTION 10.3 shall be net of any
amounts actually recovered by the Indemnitee under insurance policies of either
Seller or Buyer or from other Persons with respect to such Loss.

         (h)      No Indemnifiable Buyer Loss shall accrue and no Indemnity
Payment under SECTION 10.3(a) shall be required for any Losses arising from
Buyer's exercise of its rights as assignee of Seller under SECTIONS 2.5 and 7.13
of the Level Propane Purchase Agreement.

                                     - 34 -

<PAGE>

         (i)      If and to the extent that prior to the Closing Seller has
Knowledge or Buyer has actual knowledge of the breach of or inaccuracy in a
representation, warranty or covenant made by the other party, then such party
shall not have the right to assert a claim for indemnification in respect of
such breach or inaccuracy, and the party against whom such claim could otherwise
be asserted shall have no liability or obligation in respect thereof.

         SECTION 10.3 INDEMNIFICATION.

         (a)      Seller Indemnification. Subject to SECTIONS 10.1 and 10.2
hereof, from and after the Closing, Seller shall indemnify, defend and hold
harmless Buyer and its Affiliates and their respective directors, partners,
officers, employees and agents representatives (collectively, "Buyer
Indemnitees") from and against any and all claims, demands or suits (by any
Person, including any Governmental Entity), losses, liabilities, damages, fines,
penalties, obligations, payments, costs and expenses, paid or incurred, whether
or not relating to, resulting from or arising out of any Third Party Claim,
including the costs and expenses of any and all actions, suits, proceedings,
demands, assessments, judgments, settlements, and compromises relating thereto
and reasonable attorneys' fees in connection therewith (collectively, "Losses")
(provided, that Losses shall not include any punitive damages of any Buyer
Indemnitee) (individually and collectively, "Indemnifiable Buyer Losses")
resulting from or arising out of any of the following:

                  (i)      any breach by Seller of any of the representations or
         warranties of Seller contained in this Agreement;

                  (ii)     any breach by Seller of any covenant or agreement of
         Seller contained in this Agreement;

                  (iii)    any Excluded Liability;

                  (iv)     any payments or liabilities incurred by Buyer with
         respect to the current liabilities included, or that should have been
         included, in the calculation of Closing Date Working Capital (as
         finally determined and adjusted for under SECTION 3.4(d)), in the
         aggregate, in excess of the aggregate amounts included for current
         liabilities in such Closing Date Working Capital, with such excess, if
         any, determined as of a cut-off date of December 15, 2004;

                  (v)      any liabilities other than Assumed Liabilities that
         are imposed upon Buyer as a consequence of failure by the parties to
         comply with any applicable bulk sales or similar laws relating to the
         sales contemplated by this Agreement.

         (b)      Buyer Indemnification. Subject to SECTIONS 10.1 and 10.2
hereof, from and after the Closing, Buyer shall indemnify, defend and hold
harmless Seller and its Affiliates and their respective directors, officers,
employees and representatives (collectively, "Seller Indemnitees") from and
against any and all Losses (provided, that Losses shall not include any punitive
damages of any Seller Indemnitee) (individually and collectively, "Indemnifiable
Seller Losses"; and, collectively with Indemnifiable Buyer Losses,
"Indemnifiable Losses") resulting from or arising out of any of the following:

                                     - 35 -

<PAGE>

                  (i)      any breach by Buyer of any of the representations or
         warranties of Buyer contained in this Agreement;

                  (ii)     any breach by Buyer of any covenant or agreement of
         Buyer contained in this Agreement;

                  (iii)    any Assumed Liability; and

                  (iv)     without limiting subsection (iii) above, the conduct
         of the Business by Buyer or any part thereof, or use or lease by Buyer
         of any Purchased Asset, in each case, after the Closing.

         (c)      For purposes of this Agreement (i) "Indemnity Payment" means
any amount of Indemnifiable Losses required to be paid pursuant to this SECTION
10.3, (ii) "Indemnitee" means any Person entitled to indemnification under this
Agreement and (iii) "Indemnifying Party" means any Person required to provide
indemnification under this Agreement.

         SECTION 10.4 DEFENSE OF CLAIMS.

         (a)      If any Indemnitee receives notice of the assertion of any
claim or cause of action or of the commencement of any action, proceeding or
investigation by any Person (including any Governmental Entity) who is not a
party to this Agreement or an Affiliate of such a party (a "Third Party Claim")
against such Indemnitee, with respect to which an Indemnifying Party is
obligated to provide indemnification under this Agreement, the Indemnitee shall
give such Indemnifying Party reasonably prompt written notice thereof; provided,
however, that no delay on the part of the Indemnitee in notifying the
Indemnifying Party shall relieve the Indemnifying Party from any obligation
hereunder unless (and then solely to the extent) the Indemnifying Party thereby
is prejudiced. Such notice shall describe the Third Party Claim in reasonable
detail, and shall indicate the estimated amount, if reasonably practicable, of
the Indemnifiable Loss that has been or may be sustained by the Indemnitee. The
Indemnifying Party shall have the right to assume the defense of any Third Party
Claim at such Indemnifying Party's own expense and by such Indemnifying Party's
own counsel (reasonably satisfactory to the Indemnitee), and the Indemnitee
shall cooperate in good faith in such defense; provided, however, that if the
Indemnitee reasonably determines that there exists a conflict of interest
between the Indemnifying Party (or any constituent part of it) and the
Indemnitee, the Indemnitee (or any constituent part of it) shall have the right
to engage separate counsel, the reasonable costs and expenses of which shall be
paid by the Indemnifying Party, but in no event shall the Indemnified Party be
liable for the costs and expenses of more than one separate counsel. In the
event the Indemnifying Party shall not have assumed the defense and the
Indemnitee is conducting the defense, the Indemnifying Party shall be entitled
to monitor the defense by the Indemnitee, to consult with the Indemnitee with
respect to such claim and to be kept fully informed by the Indemnitee of such
Third Party Claim, which shall include, without limitation, the right to review
and obtain copies of all pleadings, motions and correspondence, and other non
privileged documentation and information in connection with such Third Party
Claim, in each case as the Indemnifying Party may reasonably request. The
Indemnifying Party and the Indemnitee shall make available to each other as
reasonably requested their attorneys and accountants and all books and records
relating to Third Party Claims and the parties hereto agree to render to each

                                     - 36 -

<PAGE>

other such assistance as they may reasonably require to ensure the proper and
adequate defense of any Third Party Claim. The right to assume the defense of
any Third Party Claim shall include, without limitation, the right to assert,
for the benefit of the Indemnitee, cross-claims and counterclaims in connection
with such Third Party Claim that are directly related to such Third Party Claim.

         (b)      If, within 20 calendar days after giving notice of a Third
Party Claim to an Indemnifying Party pursuant to SECTION 10.4(a), an Indemnitee
receives written notice from the Indemnifying Party that the Indemnifying Party
has elected to assume the defense of such Third Party Claim as provided in
SECTION 10.4(a), the Indemnifying Party shall not be liable for any legal
expenses subsequently incurred by the Indemnitee in connection with the defense
thereof; provided, however, that if the Indemnifying Party fails to take
reasonable steps necessary to defend diligently such Third Party Claim within 20
calendar days after receiving written notice from the Indemnitee that the
Indemnitee believes the Indemnifying Party has failed to take such steps, the
Indemnitee may assume its own defense, and the Indemnifying Party shall be
liable for all costs or expenses paid or incurred in connection therewith.

         (c)      Without the prior written consent of the Indemnitee, which
consent shall not unreasonably be withheld, the Indemnifying Party shall not
enter into any settlement of any Third Party Claim that does not include as an
unconditional term thereof the release by the claimant or the plaintiff of the
Indemnitee and its Affiliates from all liability in respect of such Third Party
Claim or that could reasonably be expected to lead to liability or create any
financial or other obligation on the part of the Indemnitee or any Affiliate
thereof for which the Indemnitee or any Affiliate thereof is not entitled to
indemnification hereunder or that would require the Indemnitee or any Affiliate
thereof to change in any material respect the way it conducts business. If a
firm offer is made to settle a Third Party Claim that could not be expected to
lead to liability or the creation of a financial or other obligation on the part
of the Indemnitee or any Affiliate thereof for which the Indemnitee or any
Affiliate thereof is not entitled to indemnification hereunder or to require the
Indemnitee or any Affiliate thereof to change in any material respect the way it
does business and the Indemnifying Party desires to accept and agree to such
offer, the Indemnifying Party shall give written notice to Indemnitee to that
effect. If the Indemnitee fails to consent to such firm offer within 20 calendar
days after its receipt of such notice, the Indemnitee may, at its sole cost and
expense, continue to contest or defend such Third Party Claim and, in such
event, the maximum liability of the Indemnifying Party as to such Third Party
Claim shall not exceed the amount of such settlement offer.

         (d)      Any claim by an Indemnitee on account of an Indemnifiable Loss
that does not result from a Third Party Claim (a "Direct Claim") shall be
asserted by such Indemnitee by giving the Indemnifying Party reasonably prompt
written notice thereof; provided, however that no delay on the part of the
Indemnitee in notifying the Indemnifying Party shall relieve the Indemnifying
Party from any obligation hereunder unless (and then solely to the extent) the
Indemnifying Party thereby is prejudiced.

         (e)      In the event that the Indemnifying Party disputes its
liability under the indemnity provisions of this SECTION 10.4, it shall, within
20 days after receiving written notice of a Third Party Claim or a Direct Claim,
give written notice of such dispute to the Indemnitee. The parties shall then
use all commercially reasonable efforts to resolve such dispute in a mutually
agreeable

                                     - 37 -

<PAGE>

manner. If such efforts fail, either the Indemnifying Party or the Indemnitee
may bring an action to resolve such dispute. Pending resolution of any such
dispute, the Indemnified Party shall have the right to defend, compromise or
settle such claim at the risk of the Indemnifying Party.

         (f)      If the amount of any Indemnifiable Loss, at any time
subsequent to the making of an Indemnity Payment, is reduced by recovery,
settlement or otherwise under or pursuant to any insurance coverage, or pursuant
to any claim, recovery, settlement or payment by or against any other Person,
the amount of such reduction, less any costs, expenses, premiums or other
offsets incurred in connection therewith shall promptly be repaid by the
Indemnitee to the Indemnifying Party. For the purposes of applying the
limitation on the aggregate amount of the indemnification obligation of Seller
under SECTION 10.2(b), the aggregate amount of all Indemnity Payments made by
Seller shall be reduced by any recovery, settlement or other payment under or
pursuant to any insurance coverage or any recovery, settlement or other payment
by or against any other Person, in any such case as a result of or in respect of
any such Indemnity Payment, less any costs, expenses, premiums or other offsets
incurred in connection therewith. UPON MAKING ANY INDEMNITY PAYMENT, THE
INDEMNIFYING PARTY SHALL, TO THE EXTENT OF SUCH INDEMNITY PAYMENT, BE SUBROGATED
TO ALL RIGHTS OF THE INDEMNITEE AGAINST ANY THIRD PARTY THAT IS NOT AN AFFILIATE
OF THE INDEMNITEE IN RESPECT OF THE INDEMNIFIABLE LOSS TO WHICH THE INDEMNITY
PAYMENT RELATES. WITHOUT LIMITING THE GENERALITY OR EFFECT OF ANY OTHER
PROVISION HEREOF, EACH SUCH INDEMNITEE SHALL DULY EXECUTE UPON REQUEST ALL
INSTRUMENTS REASONABLY NECESSARY TO EVIDENCE AND PERFECT THE ABOVE DESCRIBED
SUBROGATION RIGHTS.

                                   ARTICLE XI
                            MISCELLANEOUS PROVISIONS

         SECTION 11.1 AMENDMENT AND MODIFICATION. Except as otherwise provided
herein, this Agreement may be amended, modified or supplemented only by written
agreement of Seller and Buyer.

         SECTION 11.2 WAIVER OF COMPLIANCE; CONSENTS. Except as otherwise
provided in this Agreement, any failure of any of the parties to comply with any
obligation, covenant or condition herein may be waived by the party entitled to
the benefits thereof only by a written instrument signed by the party granting
such waiver, but such waiver or failure to insist upon strict compliance with
such obligation, covenant, or condition shall not operate as a waiver of, or
estoppel with respect to, any subsequent or other failure.

         SECTION 11.3 SURVIVAL. The representations and warranties set forth in
this Agreement and the Ancillary Agreements constitute the only representations
and warranties made by Seller and Buyer with respect to the transactions
contemplated hereby and the Purchased Assets transferred pursuant hereto, and
such representations and warranties supersede all representations and
warranties, written or oral, previously made by Seller or Buyer.

         SECTION 11.4 NOTICES. All notices and other communications hereunder
shall be in writing and shall be deemed given: (a) when personally delivered,
sent by facsimile transmission (with hard copy to follow) or sent by reputable
express courier (charges prepaid) or (b) five days following mailing by
registered or certified mail postage prepaid and return receipt requested.

                                     - 38 -

<PAGE>

Unless another address is specified in writing, notices, demands and
communications to Seller and Buyer shall be sent to the addresses indicated
below:

                    If to Seller:        Horizon Propane LLC
                                         25425 Center Ridge Road
                                         Westlake, Ohio 44145
                                         Facsimile No.: (440) 808-6901
                                         Attention: Chief Executive Officer

                    with a copy to:      Baker & Hostetler LLP
                                         3200 National City Center
                                         1900 East 9th Street
                                         Cleveland, Ohio 44114
                                         Facsimile No.: (216) 696-0740
                                         Attention: Edward G. Ptaszek, Jr., Esq.

                    If to Buyer:         AmeriGas Propane, L.P.
                                         460 North Gulph Road
                                         King of Prussia, PA 19406
                                         Facsimile No.: (610) 992-3258
                                         Attention: Vice President - Law

                    with a copy to:      Blank Rome LLP
                                         One Logan Square
                                         Philadelphia, PA 19103-6998
                                         Facsimile No.: (215) 832-5527
                                         Attention: Samuel H. Becker, Esq.

         SECTION 11.5 BINDING EFFECT; ASSIGNMENT. This Agreement and all of the
provisions hereof shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns, but neither this
Agreement nor any of the rights, interests or obligations hereunder shall be
assigned by either party, including by operation of law, without the prior
written consent of the other party; except that Buyer may assign this Agreement
without consent to any Affiliate or in connection with any sale of the Business
or substantially all of the assets by Buyer. Any assignment of this Agreement or
any of the rights, interests or obligations hereunder in contravention of this
SECTION 11.5 shall be null and void and shall not bind or be recognized by any
of Seller or Buyer.

         SECTION 11.6 THIRD-PARTY BENEFICIARIES. Nothing in this Agreement shall
be construed as giving any person other than the parties hereto any legal or
equitable right, remedy or claim under or with respect to this Agreement.

         SECTION 11.7 SEVERABILITY. If any term or other provision of this
Agreement is determined to be invalid, illegal or unenforceable in any respect
for any reason, all other terms, conditions and provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any
manner materially adverse to any party. Upon such determination that any term or
other

                                     - 39 -

<PAGE>

provision is invalid, illegal or unenforceable, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in a mutually acceptable manner in
order that the transactions contemplated hereby be consummated as originally
contemplated to the fullest extent possible.

         SECTION 11.8 GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of Ohio, without respect to
principles of conflicts of law thereof.

         SECTION 11.9 SUBMISSION TO JURISDICTION. In the event of any legal
action involving this Agreement or any agreement or document related hereto, the
parties irrevocably (a) elect that the sole judicial forum for the adjudication
of any matter arising under or in connection with this Agreement, the Ancillary
Agreements or the transactions contemplated hereby and thereby shall be the
United States District Court for the Northern District of Ohio, Eastern
Division, sitting in Cleveland, Ohio, as well as any court to which an appeal
may be taken from the aforesaid court, (b) consent to the jurisdiction of such
courts, (c) agrees that service of process on any party to any action arising
under or in connection with this Agreement, the Ancillary Agreements or the
transactions contemplated hereby and thereby shall be effective if delivered to
such party in accordance with SECTION 11.4 hereof and (d) provided that service
of process is so delivered, waives and agrees not to assert, to the fullest
extent permitted by law, any objection or defense it may now or hereafter have
based upon lack of personal jurisdiction, improper or ineffective service of
process, improper venue or forum non conveniens.

         SECTION 11.10 COUNTERPARTS. This Agreement may be executed and
delivered (including by facsimile transmission) in one or more counterparts, and
by the different parties hereto in separate counterparts, each of which, when
executed and delivered, shall be deemed to be an original but all of which taken
together shall constitute one and the same agreement.

         SECTION 11.11 INCORPORATION. All exhibits and schedules attached hereto
and referred to herein are hereby incorporated herein by reference and made a
part of this Agreement for all purposes as if fully set forth herein.

         SECTION 11.12 ENTIRE AGREEMENT. This Agreement (including the exhibits
and schedules hereto) and the Ancillary Agreements constitute the entire
agreement between the parties with respect to the subject matter hereof and
supersede all prior agreements and understandings between the parties with
respect thereto.

         SECTION 11.13 HEADINGS. The descriptive headings contained in this
Agreement are included for convenience of reference only and shall not affect in
any way the meaning or interpretation of this Agreement.

         SECTION 11.14 REMEDIES. Seller and Buyer hereby acknowledge and agree
that money damages may not be an adequate remedy for any breach or threatened
breach of any of the provisions of this Agreement and that, in such event,
Seller or its successors or assigns, or Buyer or its successors or assigns, as
the case may be, may, in addition to any other rights and remedies existing in
their favor, apply to the United States District Court for the Northern District
of Ohio,

                                     - 40 -

<PAGE>

Eastern Division, sitting in Cleveland, Ohio for specific performance,
injunctive and/or other relief in order to enforce or prevent any violations of
this Agreement.

         SECTION 11.15 AGREEMENT NOT TO COMPETE. In consideration for payment of
the Purchase Price and other consideration under this Agreement, for a period
commencing on the Closing Date and terminating on the second anniversary
thereof, Seller, Eaglerock and Eaglerock's members (except in connection with
Eaglerock's members' investment banking and turn-around businesses) and their
respective successors and assigns shall not: (a) whether as a consultant, agent,
independent contractor, partner, shareholder, participant, owner, creditor,
investor or otherwise, invest in (other than ownership as a non-controlling
investor), own, manage, operate, finance or control any business that conducts
the retail sale of LP Gas in any state or region in which Seller conducts
business as of the Closing Date; (b) induce or attempt to induce any customer to
reduce such customer's purchases of products from the Business or Buyer and its
successors and assigns after the Closing Date; and (c) except as expressly
permitted by Buyer or its successors or assigns in advance in writing, solicit
any protected employee of the Business to leave the employ of Buyer or its
successors and assigns (other than by means of general "help wanted"
advertising) or hire any such protected employee (as used herein, the term
"protected employee" means any person who was employed by Seller immediately
prior to the Closing. Nothing in this SECTION 11.15 shall be construed to limit
Candlewood Partners, Sedgewick Capital or Union Partners, or their respective
Affiliates, from engaging in their respective investment banking, financial
consulting or turn-around business activities, notwithstanding that such
activities may be competitive with the Business.

                            [Signature page follows.]

                                     - 41 -

<PAGE>

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

                                       BUYER:

                                       AmeriGas Propane, L.P.

                                       By: AmeriGas Propane, Inc., its General
                                       Partner

                                              By:_______________________________
                                              Name:_____________________________
                                              Title:____________________________

                                       SELLER:

                                       Horizon Propane LLC

                                       By:______________________________________
                                       Name:____________________________________
                                       Title:___________________________________

                  {SIGNATURE PAGE TO ASSET PURCHASE AGREEMENT}

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]