Document:

EXHIBIT 4.4

               BNP PARIBAS MORTGAGE ABS LLC TRUST SERIES 200_ - __

                                 Issuing Entity

                                       AND

                           [Name of Indenture Trustee]

                                INDENTURE TRUSTEE

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

                                    INDENTURE

                           Dated as of _____ __, 200_

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

                              MORTGAGE-BACKED NOTES

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

<PAGE>

                                TABLE OF CONTENTS

SECTION

ARTICLE I            Definitions
   Section 1.01         Definitions
   Section 1.02         Incorporation by Reference of Trust Indenture Act
   Section 1.03         Rules of Construction

ARTICLE II           Original Issuance of Notes
   Section 2.01         Form
   Section 2.02         Execution, Authentication and Delivery

ARTICLE III          Covenants
   Section 3.01         Collection of Payments with Respect to the Mortgage
                        Loans
   Section 3.02         Maintenance of Office or Agency
   Section 3.03         Money for Payments to Be Held in Trust; Paying Agent
   Section 3.04         Existence
   Section 3.05         Payment of Principal and Interest; Defaulted Interest
   Section 3.06         Protection of Trust Estate
   Section 3.07         Opinions as to Trust Estate
   Section 3.08         Performance of Obligations; Servicing Agreement
   Section 3.09         Negative Covenants
   Section 3.10         Annual Statement as to Compliance
   Section 3.11         Recording of Assignments
   Section 3.12         Representations and Warranties Concerning the Mortgage
                        Loans
   Section 3.13         Amendments to Servicing Agreement
   Section 3.14         Master Servicer as Agent and Bailee of the Mortgage
                        Loans Holder
   Section 3.15         Investment Company Act
   Section 3.16         Issuing Entity May Consolidate, Etc
   Section 3.17         Successor or Transferee
   Section 3.18         No Other Business
   Section 3.19         No Borrowing
   Section 3.20         Guarantees, Loans, Advances and Other Liabilities
   Section 3.21         Capital Expenditures
   Section 3.22         [Reserved]
   Section 3.23         Restricted Payments
   Section 3.24         Notice of Events of Default
   Section 3.25         Further Instruments and Acts
   Section 3.26         Statements to Noteholders
   Section 3.27         Determination of Note Interest Rate
   Section 3.28         Payments under the Credit Enhancement Instrument
   Section 3.29         Replacement Credit Enhancement Instrument

ARTICLE IV           The Notes; Satisfaction and Discharge of Indenture
   Section 4.01         The Notes
   Section 4.02         Registration of and Limitations on Transfer and Exchange
                        of Notes;  Appointment of Certificate Registrar
   Section 4.03         Mutilated, Destroyed, Lost or Stolen Notes
   Section 4.04         Persons Deemed Owners
   Section 4.05         Cancellation
   Section 4.06         Book-Entry Notes
   Section 4.07         Notices to Depository
   Section 4.08         Definitive Notes
   Section 4.09         Tax Treatment
   Section 4.10         Satisfaction and Discharge of Indenture
   Section 4.11         Application of Trust Money
   Section 4.12         Subrogation and Cooperation
   Section 4.13         Repayment of Monies Held by Paying Agent
   Section 4.14         Temporary Notes

ARTICLE V            Default and Remedies
   Section 5.01         Events of Default
   Section 5.02         Acceleration of Maturity; Rescission and Annulment
   Section 5.03         Collection of Indebtedness and Suits for Enforcement by
                        Indenture Trustee
   Section 5.04         Remedies; Priorities
   Section 5.05         Optional Preservation of the Trust Estate
   Section 5.06         Limitation of Suits
   Section 5.07         Restoration of Rights and Remedies
   Section 5.08         Rights and Remedies Cumulative
   Section 5.09         Delay or Omission Not a Waiver
   Section 5.10         Control by Noteholders
   Section 5.11         Waiver of Past Defaults
   Section 5.12         Undertaking for Costs
   Section 5.13         Waiver of Stay or Extension Laws
   Section 5.14         Sale of Trust Estate
   Section 5.15         Action on Notes
   Section 5.16         Performance and Enforcement of Certain Obligations

ARTICLE VI           The Indenture Trustee
   Section 6.01         Duties of Indenture Trustee
   Section 6.02         Rights of Indenture Trustee
   Section 6.03         Individual Rights of Indenture Trustee
   Section 6.04         Indenture Trustee's Disclaimer
   Section 6.05         Notice of Event of Default
   Section 6.06         Reports by Indenture Trustee to Holders
   Section 6.07         Compensation and Indemnity
   Section 6.08         Replacement of Indenture Trustee
   Section 6.09         Successor Indenture Trustee by Merger
   Section 6.10         Appointment of Co-Indenture Trustee or Separate
                        Indenture Trustee
   Section 6.11         Eligibility; Disqualification
   Section 6.12         Preferential Collection of Claims Against Issuing Entity
   Section 6.13         Representation and Warranty
   Section 6.14         Directions to Indenture Trustee
   Section 6.15         [Reserved]
   Section 6.16         Indenture Trustee May Own Securities

ARTICLE VII          Noteholders' Lists and Reports
   Section 7.01         Issuing Entity to Furnish Indenture Trustee Names and
                        Addresses of Noteholders
   Section 7.02         Preservation of Information; Communications to
                        Noteholders
   Section 7.03         Reports by Issuing Entity
   Section 7.04         Reports by Indenture Trustee

ARTICLE VIII         Accounts, Disbursements and Releases
   Section 8.01         Collection of Money
   Section 8.02         Trust Accounts
   Section 8.03         Officer's Certificate
   Section 8.04         Termination upon Distribution to Noteholders
   Section 8.05         Release of Trust Estate
   Section 8.06         Surrender of Notes upon Final Payment

ARTICLE IX           Supplemental Indentures
   Section 9.01         Supplemental Indentures Without Consent of Noteholders
   Section 9.02         Supplemental Indentures with Consent of Noteholders
   Section 9.03         Execution of Supplemental Indentures
   Section 9.04         Effect of Supplemental Indenture
   Section 9.05         Conformity with Trust Indenture Act
   Section 9.06         Reference in Notes to Supplemental Indentures

ARTICLE X            Miscellaneous
   Section 10.01        Compliance Certificates and Opinions, Etc
   Section 10.02        Form of Documents Delivered to Indenture Trustee
   Section 10.03        Acts of Noteholders
   Section 10.04        Notices,  Etc., to Indenture Trustee,  Issuing Entity,
                        Credit Enhancer and Rating
                        Agencies
   Section 10.05        Notices to Noteholders; Waiver
   Section 10.06        Alternate Payment and Notice Provisions
   Section 10.07        Conflict with Trust Indenture Act
   Section 10.08        Effect of Headings
   Section 10.09        Successors and Assigns
   Section 10.10        Separability
   Section 10.11        Benefits of Indenture
   Section 10.12        Legal Holidays
   Section 10.13        GOVERNING LAW
   Section 10.14        Counterparts
   Section 10.15        Recording of Indenture
   Section 10.16        Issuing Entity Obligation
   Section 10.17        No Petition
   Section 10.18        Inspection
   Section 10.19        Authority of the Administrator

<PAGE>

EXHIBITS

Exhibit A         --        Form of Notes

Appendix A        --        Definitions

<PAGE>

         This  Indenture,  dated  as of  _______________,  between  BNP  Paribas
Mortgage ABS LLC Trust Series 200_ -__, a Delaware  statutory  trust, as Issuing
Entity   (the   "Issuing   Entity"),   and    ____________________________,    a
____________________________, as Indenture Trustee (the "Indenture Trustee"),

                                WITNESSETH THAT:

         Each party hereto agrees as follows for the benefit of the other party
and for the equal and ratable benefit of the Holders of the Issuing Entity's
Series 200_-_ Mortgage-Backed Notes (the "Notes").

                                 GRANTING CLAUSE

         The Issuing Entity hereby Grants to the Indenture Trustee on the
Closing Date, as trustee for the benefit of the Holders of the Notes, all of the
Issuing Entity's right, title and interest in and to whether now existing or
hereafter created by (a) the Mortgage Loans and the proceeds thereof, (b) all
funds on deposit in the Funding Account, including all income from the
investment and reinvestment of funds therein, (c) all funds on deposit from time
to time in the Collection Account allocable to the Mortgage Loans excluding any
investment income from such funds; (d) all funds on deposit from time to time in
the Payment Account and in all proceeds thereof; (e) the Policy and (f) all
present and future claims, demands, causes and chooses in action in respect of
any or all of the foregoing and all payments on or under, and all proceeds of
every kind and nature whatsoever in respect of, any or all of the foregoing and
all payments on or under, and all proceeds of every kind and nature whatsoever
in the conversion thereof, voluntary or involuntary, into cash or other liquid
property, all cash proceeds, accounts, accounts receivable, notes, drafts,
acceptances, checks, deposit accounts, rights to payment of any and every kind,
and other forms of obligations and receivables, instruments and other property
which at any time constitute all or part of or are included in the proceeds of
any of the foregoing (collectively, the "Trust Estate" or the "Collateral").

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

         The Indenture Trustee, as trustee on behalf of the Holders of the
Notes, acknowledges such Grant, accepts the trust under this Indenture in
accordance with the provisions hereof and agrees to perform its duties as
Indenture Trustee as required herein.

<PAGE>

                                   ARTICLE I

                                   Definitions

         Section 1.01 DEFINITIONS. For all purposes of this Indenture, except as
otherwise  expressly  provided herein or unless the context otherwise  requires,
capitalized  terms not otherwise defined herein shall have the meanings assigned
to such  terms  in the  Definitions  attached  hereto  as  Appendix  A which  is
incorporated by reference herein.  All other capitalized terms used herein shall
have the meanings specified herein.

         Section  1.02  INCORPORATION  BY  REFERENCE  OF  TRUST  INDENTURE  ACT.
Whenever this  Indenture  refers to a provision of the Trust  Indenture Act (the
"TIA"),  the provision is  incorporated  by reference in and made a part of this
Indenture.  The  following TIA terms used in this  Indenture  have the following
meanings:

                  "Commission" means the Securities and Exchange Commission.

                  "indenture securities" means the Notes.

                  "indenture security holder" means a Noteholder.

                  "indenture to be qualified" means this Indenture.

                  "indenture  trustee"  or  "institutional  trustee"  means  the
         Indenture Trustee.

                  "obligor" on the indenture securities means the Issuing Entity
         and any other obligor on the indenture securities.

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

         Section  1.03  RULES OF  CONSTRUCTION.  Unless  the  context  otherwise
requires:

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

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

                  (iii) "or" is not exclusive;

                  (iv) "including" means including without limitation;

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

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

<PAGE>

                                   ARTICLE II

                           Original Issuance of Notes

         Section 2.01 FORM.  The Notes,  together with the  Indenture  Trustee's
certificate of  authentication,  shall be in substantially the form set forth in
Exhibit A, with such appropriate insertions, omissions,  substitutions and other
variations  as are  required or permitted  by this  Indenture  and may have such
letters,   numbers  or  other  marks  of  identification  and  such  legends  or
endorsements placed thereon as may, consistently  herewith, be determined by the
officers executing such Notes, as evidenced by their execution of the Notes. Any
portion of the text of any Note may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Note.

         The Notes shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods (with or without steel engraved
borders), all as determined by the Authorized Officers executing such Notes, as
evidenced by their execution of such Notes.

         The terms of the Notes set forth in Exhibit A are part of the terms of
this Indenture.

         Section 2.02 EXECUTION, AUTHENTICATION AND DELIVERY. The Notes shall be
executed on behalf of the Issuing Entity by any of its Authorized Officers.  The
signature  of any  such  Authorized  Officer  on the  Notes  may  be  manual  or
facsimile.

         Notes bearing the manual or facsimile signature of individuals who were
at any time Authorized Officers of the Issuing Entity shall bind the Issuing
Entity, notwithstanding that such individuals or any of them have ceased to hold
such offices prior to the authentication and delivery of such Notes or did not
hold such offices at the date of such Notes.

         The Indenture Trustee shall upon Issuing Entity Request authenticate
and deliver Notes for original issue in an aggregate initial principal amount of
$___________.

         Each Note shall be dated the date of its authentication. The Notes
shall be issuable as registered Notes and the Notes shall be issuable in the
minimum initial Security Balances of $100,000 and in integral multiples of
$1,000 in excess thereof.

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

<PAGE>

                                  ARTICLE III

                                    Covenants

         Section 3.01 COLLECTION OF PAYMENTS WITH RESPECT TO THE MORTGAGE LOANS.
The Indenture  Trustee shall  establish and maintain with itself a trust account
(the "Payment  Account") in which the Indenture  Trustee  shall,  subject to the
terms of this  paragraph,  deposit,  on the same day as it is received  from the
Master Servicer,  each remittance received by the Indenture Trustee with respect
to the  Mortgage  Loans.  The  Indenture  Trustee  shall  make all  payments  of
principal of and  interest on the Notes,  subject to Section 3.03 as provided in
Section 3.05 herein from monies on deposit in the Payment Account.

         Section 3.02  MAINTENANCE OF OFFICE OR AGENCY.  The Issuing Entity will
maintain  in the  [Borough  of  Manhattan,  The City of New  York,] an office or
agency where,  subject to satisfaction of conditions set forth herein, Notes may
be surrendered for  registration of transfer or exchange,  and where notices and
demands to or upon the Issuing Entity in respect of the Notes and this Indenture
may be served.  The Issuing  Entity  hereby  initially  appoints  the  Indenture
Trustee  to serve as its agent for the  foregoing  purposes.  If at any time the
Issuing Entity shall fail to maintain any such office or agency or shall fail to
furnish the Indenture Trustee with the address thereof, such surrenders, notices
and demands may be made or served at the Corporate Trust Office, and the Issuing
Entity hereby  appoints the  Indenture  Trustee as its agent to receive all such
surrenders, notices and demands.

         Section 3.03 MONEY FOR PAYMENTS TO BE HELD IN TRUST;  PAYING AGENT. (a)
As  provided in Section  3.01,  all  payments  of amounts  due and payable  with
respect to any Notes that are to be made from amounts withdrawn from the Payment
Account  pursuant to Section 3.01 shall be made on behalf of the Issuing  Entity
by the  Indenture  Trustee or by the Paying  Agent,  and no amounts so withdrawn
from the Payment Account for payments of Notes shall be paid over to the Issuing
Entity except as provided in this Section 3.03.

         The Issuing Entity will cause each Paying Agent other than the
Indenture Trustee to execute and deliver to the Indenture Trustee an instrument
in which such Paying Agent shall agree with the Indenture Trustee (and if the
Indenture Trustee acts as Paying Agent it hereby so agrees), subject to the
provisions of this Section 3.03, that such Paying Agent will:

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

                  (ii) give the Indenture  Trustee  notice of any default by the
         Issuing  Entity of which it has actual  knowledge  in the making of any
         payment required to be made with respect to the Notes;

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

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

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

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

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

         Section 3.04 EXISTENCE. The Issuing Entity will keep in full effect its
existence,  rights and  franchises  as a  statutory  trust under the laws of the
State of Delaware (unless it becomes,  or any successor Issuing Entity hereunder
is or  becomes,  organized  under the laws of any other  state or of the  United
States of America, in which case the Issuing Entity will keep in full effect its
existence,  rights and franchises under the laws of such other jurisdiction) and
will obtain and preserve its  qualification to do business in each  jurisdiction
in which such qualification is or shall be necessary to protect the validity and
enforceability  of this Indenture,  the Notes, the Mortgage Loans and each other
instrument or agreement included in the Trust Estate.

         Section 3.05 PAYMENT OF PRINCIPAL AND INTEREST; DEFAULTED INTEREST. (a)
On each Payment Date from amounts on deposit in the Payment Account after making
(x) any deposit to the Funding  Account  pursuant to Section 8.02(b) and (y) any
deposits to the Payment  Account  pursuant  to Section  8.02(c)(ii)  and Section
8.02(c)(i)(2),   the  Indenture  Trustee  shall  pay  to  the  Noteholders,  the
Certificate  Paying  Agent,  on behalf of the  Certificateholders,  and to other
Persons the amounts to which they are entitled as set forth below:

                  (i) to the Noteholders the sum of (a) one month's  interest at
         the Note  Interest Rate on the Security  Balances of Notes  immediately
         prior to such  Payment Date and (b) any  previously  accrued and unpaid
         interest for prior Payment Dates;

                  (ii) if such Payment Date is after the Funding Period,  to the
         Noteholders,  as  principal  on  the  Notes,  the  applicable  Security
         Percentage of the Principal Collection  Distribution Amount and if such
         Payment Date is the first Payment Date following the end of the Funding
         Period (if ending due to an Amortization  Event) or the Payment Date on
         which the Funding  Period ends, to the  Noteholders as principal on the
         Notes the applicable  Security  Percentage of the amount deposited from
         the Funding Account in respect of Security Principal Collections;

                  (iii) to the Noteholders,  as principal on the Notes, from the
         amount  remaining  on  deposit  in  the  Payment  Account,  up  to  the
         applicable  Security  Percentage  of  Liquidation  Loss Amounts for the
         related Collection Period;

                  (iv) to the Noteholders,  as principal on the Notes,  from the
         amount  remaining  on  deposit  in  the  Payment  Account,  up  to  the
         applicable Security Percentage of Carryover Loss Amounts;

                  (v) to the Credit  Enhancer,  in the amount of the premium for
         the  Credit  Enhancement  Instrument  and  for  any  Additional  Credit
         Enhancement Instrument;

                  (vi) to the Credit  Enhancer,  to reimburse it for prior draws
         made on the Credit Enhancement  Instrument and on any Additional Credit
         Enhancement  Instrument  (with  interest  thereon  as  provided  in the
         Insurance Agreement);

                  (vii) to the  Noteholders,  as principal on the Notes based on
         the Security  Balances from Security  Interest  Collections,  up to the
         Special Capital Distribution Amount for such Payment Date;

                  (viii) to the Credit  Enhancer,  any other amounts owed to the
         Credit Enhancer pursuant to the Insurance Agreement;

                  (ix) [Reserved];

                  (x) to reimburse the  Administrator  for expenditures  made on
         behalf of the Issuing  Entity with  respect to the  performance  of its
         duties under the Indenture; and

                  (xi) any remaining amount, to the Certificate Paying Agent, on
         behalf of the Certificates.

provided, however, in the event that on a Payment Date a Credit Enhancer Default
shall have occurred and be continuing then the priorities of distributions
described above will be adjusted such that payments of the Certificate
Distribution Amount and all other amounts to be paid to the Certificate Paying
Agent will not be paid until the full amount of interest and principal in
accordance with clauses (i), (x) and (ii) through (iv) above that are due on the
Notes on such Payment Date have been paid and provided, further, that on the
Final Scheduled Payment Date or other final Payment Date, the amount to be paid
pursuant to clause (ii) above shall be equal to the Security Balances of the
Securities immediately prior to such Payment Date.

         On each Payment Date, the Certificate Paying Agent shall deposit in the
Certificate Distribution Account all amounts it received pursuant to this
Section 3.05 for the purpose of distributing such funds to the
Certificateholders.

         The amounts paid to Noteholders shall be paid to each Class in
accordance with the Class Percentage as set forth in paragraph (b) below.
Interest will accrue on the Notes during an Interest Period on the basis of the
actual number of days in such Interest Period and a year assumed to consist of
360 days.

         [Any installment of interest or principal, if any, payable on any Note
or Certificate that is punctually paid or duly provided for by the Issuing
Entity on the applicable Payment Date shall, if such Holder holds Notes or
Certificates of an aggregate initial Principal Balance of at least $1,000,000,
be paid to each Holder of record on the preceding Record Date, by wire transfer
to an account specified in writing by such Holder reasonably satisfactory to the
Indenture Trustee as of the preceding Record Date or in all other cases or if no
such instructions have been delivered to the Indenture Trustee, by check to such
Noteholder mailed to such Holder's address as it appears in the Note Register
the amount required to be distributed to such Holder on such Payment Date
pursuant to such Holder's Securities; provided, however, that the Indenture
Trustee shall not pay to such Holders any amount required to be withheld from a
payment to such Holder by the Code.]

         (b) The  principal of each Note shall be due and payable in full on the
Final  Scheduled  Payment Date for such Note as provided in the form of Note set
forth in Exhibit A. All principal  payments on each Class of Notes shall be made
to the  Noteholders  of such  Class  entitled  thereto  in  accordance  with the
Percentage  Interests  represented  by such Notes.  Upon notice to the Indenture
Trustee by the Issuing Entity,  the Indenture Trustee shall notify the Person in
whose name a Note is  registered  at the close of  business  on the Record  Date
preceding the Final  Scheduled  Payment Date or other final  Payment Date.  Such
notice  shall be mailed no later  than five  Business  Days  prior to such Final
Scheduled  Payment  Date or other  final  Payment  Date and shall  specify  that
payment of the  principal  amount and any interest due with respect to such Note
at the Final Scheduled  Payment Date or other final Payment Date will be payable
only upon  presentation  and  surrender of such Note and shall specify the place
where such Note may be presented and surrendered for such final payment.

         Section 3.06  PROTECTION OF TRUST ESTATE.  (a) The Issuing  Entity will
from time to time execute and deliver all such supplements and amendments hereto
and all such  financing  statements,  continuation  statements,  instruments  of
further  assurance  and  other  instruments,  and will take  such  other  action
necessary or advisable to:

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

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

                  (iii) cause the Issuing  Entity to enforce any of the Mortgage
         Loans; or

                  (iv)  preserve  and defend  title to the Trust  Estate and the
         rights of the  Indenture  Trustee  and the  Noteholders  in such  Trust
         Estate against the claims of all persons and parties.

         (b) Except as  otherwise  provided  in this  Indenture,  the  Indenture
Trustee  shall not remove any portion of the Trust Estate that consists of money
or is  evidenced  by an  instrument,  certificate  or  other  writing  from  the
jurisdiction  in which it was held at the  date of the most  recent  Opinion  of
Counsel delivered pursuant to Section 3.07 (or from the jurisdiction in which it
was held as  described  in the Opinion of Counsel  delivered at the Closing Date
pursuant to Section  3.07(a),  if no Opinion of Counsel  has yet been  delivered
pursuant  to Section  3.07(b)  unless the Trustee  shall have first  received an
Opinion of Counsel to the effect that the lien and security  interest created by
this  Indenture  with respect to such  property  will  continue to be maintained
after giving effect to such action or actions.

         The Issuing Entity hereby designates the Indenture Trustee its agent
and attorney-in-fact to execute any financing statement, continuation statement
or other instrument required to be executed pursuant to this Section 3.06.

         Section 3.07 OPINIONS AS TO TRUST ESTATE.  (a) On the Closing Date, the
Issuing  Entity shall furnish to the Indenture  Trustee and the Owner Trustee an
Opinion of Counsel  either  stating that,  in the opinion of such counsel,  such
action  has  been  taken  with  respect  to the  recording  and  filing  of this
Indenture,   any  indentures   supplemental  hereto,  and  any  other  requisite
documents,  and with  respect  to the  execution  and  filing  of any  financing
statements  and  continuation  statements,  as are necessary to perfect and make
effective the lien and security  interest in the Mortgage Loans and reciting the
details of such action, or stating that, in the opinion of such counsel, no such
action is necessary to make such lien and security interest effective.

         (b) On or before ___________ in each calendar year,  beginning in ____,
the Issuing Entity shall furnish to the Indenture  Trustee an Opinion of Counsel
at the expense of the Issuing Entity either stating that, in the opinion of such
counsel,  such  action  has been taken with  respect to the  recording,  filing,
re-recording and refiling of this Indenture,  any indentures supplemental hereto
and any other  requisite  documents and with respect to the execution and filing
of any  financing  statements  and  continuation  statements  as is necessary to
maintain the lien and security  interest in the Mortgage  Loans and reciting the
details of such action or stating  that in the  opinion of such  counsel no such
action is necessary to maintain such lien and security interest. Such Opinion of
Counsel shall also describe the recording,  filing, re-recording and refiling of
this  Indenture,  any  indentures  supplemental  hereto and any other  requisite
documents  and  the  execution  and  filing  of  any  financing  statements  and
continuation  statements that will, in the opinion of such counsel,  be required
to maintain the lien and security  interest in the Mortgage Loans until December
31 in the following calendar year.

         Section 3.08 PERFORMANCE OF OBLIGATIONS;  SERVICING AGREEMENT.  (a) The
Issuing Entity will  punctually  perform and observe all of its  obligations and
agreements  contained  in  this  Indenture,  the  Basic  Documents  and  in  the
instruments and agreements included in the Trust Estate.

         (b) The Issuing  Entity may contract with other Persons to assist it in
performing its duties under this  Indenture,  and any performance of such duties
by a Person identified to the Indenture  Trustee in an Officer's  Certificate of
the Issuing  Entity  shall be deemed to be action  taken by the Issuing  Entity.
Initially,  the Issuing Entity has contracted with the  Administrator  to assist
the Issuing Entity in performing its duties under this Indenture.

         (c) The Issuing Entity will not take any action or permit any action to
be taken by others  which would  release  any Person  from any of such  Person's
covenants or  obligations  under any of the  documents  relating to the Mortgage
Loans or under any  instrument  included  in the Trust  Estate,  or which  would
result in the amendment, hypothecation,  subordination, termination or discharge
of, or impair the validity or effectiveness of, any of the documents relating to
the  Mortgage  Loans or any such  instrument,  except such actions as the Master
Servicer  is  expressly  permitted  to  take  in the  Servicing  Agreement.  The
Indenture  Trustee,  as pledgee of the Mortgage Loans, shall be able to exercise
the rights Issuing  Entity and the Mortgage Loans holder,  to direct the actions
of the Master Servicer.

         (d) The  Issuing  Entity  shall at all times  retain  an  Administrator
(approved by the Credit  Enhancer  under the  Administration  Agreement) and may
enter into  contracts  with other  Persons  for the  performance  of the Issuing
Entity's  obligations  hereunder,  and  performance of such  obligations by such
Persons shall be deemed to be  performance  of such  obligations  by the Issuing
Entity.

         Section 3.09 NEGATIVE COVENANTS.  So long as any Notes are Outstanding,
the Issuing Entity shall not:

                  (i) except as  expressly  permitted by this  Indenture,  sell,
         transfer,  exchange or otherwise  dispose of the Trust  Estate,  unless
         directed to do so by the Indenture Trustee;

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

                  (iii)  (A)  permit  the  validity  or  effectiveness  of  this
         Indenture  to be impaired,  or permit the lien of this  Indenture to be
         amended,  hypothecated,  subordinated,  terminated  or  discharged,  or
         permit any Person to be released from any covenants or obligations with
         respect to the Notes under this  Indenture  except as may be  expressly
         permitted hereby, (B) permit any lien, charge,  excise, claim, security
         interest,  mortgage or other  encumbrance  (other than the lien of this
         Indenture)  to be  created  on or extend to or other wise arise upon or
         burden the Trust Estate or any part thereof or any interest  therein or
         the proceeds  thereof or (C) permit the lien of this  Indenture  not to
         constitute  a valid  first  priority  security  interest  in the  Trust
         Estate; or

                  (iv)  waive or impair,  or fail to assert  rights  under,  the
         Mortgage  Loans, or impair or cause to be impaired the Company's or the
         Issuing  Entity's  interest in the Mortgage  Loans,  the Mortgage  Loan
         Purchase  Agreement or in any Basic Document,  if any such action would
         materially and adversely affect the interests of the Noteholders.

         Section 3.10 ANNUAL STATEMENT AS TO COMPLIANCE. The Issuing Entity will
deliver to the Indenture  Trustee,  within 120 days after the end of each fiscal
year of the Issuing Entity  (commencing with the fiscal year ____), an Officer's
Certificate  stating,  as to  the  Authorized  Officer  signing  such  Officer's
Certificate, that:

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

                  (ii) to the best of such Authorized Officer's knowledge, based
         on such review, the Issuing Entity has complied with all conditions and
         covenants  under this Indenture  throughout such year, or, if there has
         been a default in its  compliance  with any such condition or covenant,
         specifying each such default known to such  Authorized  Officer and the
         nature and status thereof.

         Section 3.11 RECORDING OF  ASSIGNMENTS.  The Company shall cause the to
exercise its right under the Mortgage  Loan Purchase  Agreement  with respect to
the  obligation  of the Seller to submit or cause to be submitted  for recording
all Assignments of Mortgages on or prior to  ______________  with respect to the
Initial Loans and within 60 days following the related Deposit Date with respect
to any Additional Loans.

         Section 3.12  REPRESENTATIONS  AND  WARRANTIES  CONCERNING THE MORTGAGE
LOANS. The Indenture Trustee,  as pledgee of the Mortgage Loans, has the benefit
of the  representations  and warranties made by the Seller in Section [____] and
Section [____] of the Mortgage Loan Purchase  Agreement  concerning the Mortgage
Loans and the right to enforce the remedies  against the Seller provided in such
Section   [____]  or  Section   [____]  to  the  same   extent  as  though  such
representations and warranties were made directly to the Indenture Trustee.

         Section 3.13  AMENDMENTS  TO SERVICING  AGREEMENT.  The Issuing  Entity
covenants  with the Indenture  Trustee that it will not enter into any amendment
or supplement to the Servicing  Agreement in accordance with Section 8.01 of the
Servicing  Agreement without the prior written consent of the Indenture Trustee.
The Indenture Trustee, as pledgee of the Mortgage Loans, may, in its discretion,
decline to enter into or consent to any such  supplement or amendment if its own
rights, duties or immunities shall be adversely affected.

         Section 3.14 MASTER  SERVICER AS AGENT AND BAILEE OF THE MORTGAGE LOANS
HOLDER.  Solely for purposes of  perfection  under  Section 9-305 of the Uniform
Commercial Code or other similar applicable law, rule or regulation of the state
in which such property is held by the Master  Servicer,  the  Indenture  Trustee
hereby  acknowledges  that the Master  Servicer is acting as agent and bailee of
the  Mortgage  Loans  holder in holding  amounts  on  deposit in the  Collection
Account  pursuant to Section  3.02 of the  Servicing  Agreement,  as well as its
agent and  bailee in  holding  any  Related  Documents  released  to the  Master
Servicer pursuant to Section 3.06(c) of the Servicing  Agreement,  and any other
items  constituting a part of the Trust Estate which from time to time come into
the  possession  of the Master  Servicer.  It is  intended  that,  by the Master
Servicer's  acceptance of such agency  pursuant to Section 3.02 of the Servicing
Agreement, the Indenture Trustee, as a secured party of the Mortgage Loans, will
be deemed to have  possession  of such Related  Documents,  such monies and such
other items for purposes of Section 9-305 of the Uniform  Commercial Code of the
state in which such property is held by the Master Servicer.

         Section  3.15  INVESTMENT  COMPANY  ACT.  The Issuing  Entity shall not
become an "investment company" or under the "control" of an "investment company"
as such terms are defined in the Investment  Company Act of 1940, as amended (or
any successor or amendatory statute),  and the rules and regulations  thereunder
(taking into  account not only the general  definition  of the term  "investment
company"  but  also  any  available  exceptions  to  such  general  definition);
provided,  however,  that the Issuing  Entity shall be in  compliance  with this
Section 3.15 if it shall have obtained an order  exempting it from regulation as
an  "investment  company"  so long as it is in  compliance  with the  conditions
imposed in such order.

         Section  3.16  ISSUING  ENTITY MAY  CONSOLIDATE,  ETC.  (a) The Issuing
Entity shall not consolidate or merge with or into any other Person, unless:

                  (i) the Person (if other than the Issuing Entity) formed by or
         surviving such  consolidation or merger shall be a Person organized and
         existing under the laws of the United States of America or any state or
         the District of Columbia and shall  expressly  assume,  by an indenture
         supplemental  hereto,  executed and delivered to the Indenture Trustee,
         in form reasonably  satisfactory to the Indenture Trustee,  the due and
         punctual  payment of the  principal of and interest on all Notes and to
         the Certificate Paying Agent, on behalf of the  Certificateholders  and
         the  performance or observance of every  agreement and covenant of this
         Indenture  on the  part  of  the  Issuing  Entity  to be  performed  or
         observed, all as provided herein;

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

                  (iii) the Rating  Agencies  shall have  notified  the  Issuing
         Entity  that such  transaction  shall not cause the rating of the Notes
         [or the  Certificates]  to be reduced,  suspended or withdrawn or to be
         considered by either Rating Agency to be below investment grade without
         taking into account the Credit Enhancement Instrument;

                  (iv) the  Issuing  Entity  shall have  received  an Opinion of
         Counsel  (and  shall have  delivered  copies  thereof to the  Indenture
         Trustee) to the effect that such transaction will not have any material
         adverse tax  consequence to the Issuing  Entity,  any Noteholder or any
         Certificateholder;

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

                  (vi) the Issuing  Entity shall have delivered to the Indenture
         Trustee an Officer's Certificate and an Opinion of Counsel each stating
         that such  consolidation  or  merger  and such  supplemental  indenture
         comply with this Article III and that all conditions  precedent  herein
         provided  for  relating to such  transaction  have been  complied  with
         (including any filing required by the Exchange Act).

         (b)  The  Issuing  Entity  shall  not  convey  or  transfer  any of its
properties  or assets,  including  those  included in the Trust  Estate,  to any
Person, unless:

                  (i) the Person that  acquires by  conveyance  or transfer  the
         properties  and assets of the Issuing Entity the conveyance or transfer
         of which is hereby restricted shall (A) be a United States citizen or a
         Person  organized  and existing  under the laws of the United States of
         America  or  any  state,  (B)  expressly   assumes,   by  an  indenture
         supplemental  hereto,  executed and delivered to the Indenture Trustee,
         in form  satisfactory  to the Indenture  Trustee,  the due and punctual
         payment  of  the  principal  of  and  interest  on all  Notes  and  the
         performance  or  observance  of every  agreement  and  covenant of this
         Indenture  on the  part  of  the  Issuing  Entity  to be  performed  or
         observed, all as provided herein, (C) expressly agrees by means of such
         supplemental  indenture that all right,  title and interest so conveyed
         or  transferred  shall be  subject  and  subordinate  to the  rights of
         Holders  of  the  Notes,   (D)  unless   otherwise   provided  in  such
         supplemental indenture,  expressly agrees to indemnify, defend and hold
         harmless  the Issuing  Entity  against and from any loss,  liability or
         expense  arising  under or related to this  Indenture and the Notes and
         (E) expressly agrees by means of such supplemental  indenture that such
         Person (or if a group of Persons, then one specified Person) shall make
         all filings  with the  Commission  (and any other  appropriate  Person)
         required by the Exchange Act in connection with the Notes;

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

                  (iii) the Rating  Agencies  shall have  notified  the  Issuing
         Entity that such transaction shall not cause the rating of the Notes or
         the Certificates to be reduced, suspended or withdrawn;

                  (iv) the  Issuing  Entity  shall have  received  an Opinion of
         Counsel  (and  shall have  delivered  copies  thereof to the  Indenture
         Trustee) to the effect that such transaction will not have any material
         adverse tax consequence to the Issuing Entity or any Noteholder;

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

                  (vi) the Issuing  Entity shall have delivered to the Indenture
         Trustee an Officer's Certificate and an Opinion of Counsel each stating
         that such conveyance or transfer and such supplemental indenture comply
         with this Article III and that all conditions precedent herein provided
         for relating to such transaction have been complied with (including any
         filing required by the Exchange Act).

         Section 3.17 SUCCESSOR OR  TRANSFEREE.  (a) Upon any  consolidation  or
merger of the Issuing  Entity in  accordance  with Section  3.16(a),  the Person
formed by or surviving such  consolidation  or merger (if other than the Issuing
Entity) shall succeed to, and be  substituted  for, and may exercise every right
and power of, the Issuing Entity under this Indenture with the same effect as if
such Person had been named as the Issuing Entity herein.

         (b) Upon a conveyance  or transfer of all the assets and  properties of
the Issuing  Entity  pursuant  to Section  3.16(b),  the Issuing  Entity will be
released from every  covenant and agreement of this  Indenture to be observed or
performed  on  the  part  of the  Issuing  Entity  with  respect  to  the  Notes
immediately upon the delivery of written notice to the Indenture Trustee of such
conveyance or transfer.

         Section 3.18 NO OTHER BUSINESS.  The Issuing Entity shall not engage in
any business other than financing,  purchasing,  owning and selling and managing
the Mortgage Loans and the issuance of the Notes and  Certificates in the manner
contemplated  by this  Indenture  and the  Basic  Documents  and all  activities
incidental thereto.

         Section 3.19 NO BORROWING.  The Issuing Entity shall not issue,  incur,
assume,  guarantee or otherwise become liable,  directly or indirectly,  for any
indebtedness except for the Notes.

         Section 3.20 GUARANTEES, LOANS, ADVANCES AND OTHER LIABILITIES.  Except
as  contemplated  by this Indenture or the Basic  Documents,  the Issuing Entity
shall not make any loan or  advance  or credit  to, or  guarantee  (directly  or
indirectly or by an instrument  having the effect of assuring  another's payment
or  performance  on any  obligation  or  capability  of so doing or  otherwise),
endorse or otherwise  become  contingently  liable,  directly or indirectly,  in
connection  with the  obligations,  stocks or  dividends  of, or own,  purchase,
repurchase or acquire (or agree  contingently to do so) any stock,  obligations,
assets  or  securities  of,  or any  other  interest  in,  or make  any  capital
contribution to, any other Person.

         Section 3.21 CAPITAL  EXPENDITURES.  The Issuing  Entity shall not make
any  expenditure  (by long- term or operating  lease or  otherwise)  for capital
assets (either realty or personalty). Section 3.22 [Reserved]

         Section  3.23  RESTRICTED  PAYMENTS.  The  Issuing  Entity  shall  not,
directly  or  indirectly,  (i) pay any  dividend  or make any  distribution  (by
reduction of capital or otherwise),  whether in cash, property,  securities or a
combination  thereof, to the Owner Trustee or any owner of a beneficial interest
in the Issuing  Entity or  otherwise  with  respect to any  ownership  or equity
interest or security in or of the Issuing Entity, (ii) redeem, purchase,  retire
or otherwise acquire for value any such ownership or equity interest or security
or (iii) set aside or  otherwise  segregate  any amounts  for any such  purpose;
provided,  however,  that the Issuing  Entity may make, or cause to be made, (x)
distributions  to the Owner Trustee and the  Certificateholders  as contemplated
by, and to the  extent  funds are  available  for such  purpose  under the Trust
Agreement,  (y)  payments  to the Master  Servicer  pursuant to the terms of the
Servicing  Agreement  and (z)  payments  to the  Indenture  Trustee  pursuant to
Section 1(a)(ii) of the Administration  Agreement.  The Issuing Entity will not,
directly or indirectly,  make payments to or  distributions  from the Collection
Account except in accordance with this Indenture and the Basic Documents.

         Section 3.24 NOTICE OF EVENTS OF DEFAULT. The Issuing Entity shall give
the Indenture Trustee the Credit Enhancer and the Rating Agencies prompt written
notice of each Event of Default hereunder and under the Trust Agreement.

         Section  3.25  FURTHER  INSTRUMENTS  AND  ACTS.  Upon  request  of  the
Indenture  Trustee,  the Issuing  Entity will  execute and deliver  such further
instruments and do such further acts as may be reasonably necessary or proper to
carry out more effectively the purpose of this Indenture.

         Section 3.26 STATEMENTS TO NOTEHOLDERS.  The Indenture  Trustee and the
Certificate   Registrar   shall   forward  by  mail  to  each   Noteholder   and
Certificateholder,  respectively,  the  Statement  delivered  to it  pursuant to
Section 4.01 of the Servicing Agreement.

         Section 3.27  DETERMINATION  OF NOTE INTEREST RATE. On the second LIBOR
Business Day immediately preceding (i) the Closing Date in the case of the first
Interest Period and (ii) the first day of each succeeding  Interest Period,  the
Indenture  Trustee  shall  determine  LIBOR and the Note  Interest Rate for such
Interest Period and shall inform the Issuing Entity, the Master Servicer and the
Depositor at their respective  facsimile  numbers given to the Indenture Trustee
in writing thereof.

         Section 3.28 PAYMENTS UNDER THE CREDIT ENHANCEMENT  INSTRUMENT.  (a) On
any Payment Date, other than a Dissolution  Payment Date, the Indenture  Trustee
on behalf of the Noteholders, and in its capacity as Certificate Paying Agent on
behalf of the  Certificateholders  shall make a draw on the  Credit  Enhancement
Instrument  in an amount if any equal to the sum of (x) the  amount by which the
interest  accrued at the Note Interest Rate on the Security Balance of the Notes
exceeds the amount on deposit in the Payment Account available to be distributed
therefor on such Payment Date and (y) the  Guaranteed  Principal  Payment Amount
(the "Credit Enhancement Draw Amount").

         (b) The Indenture  Trustee shall submit,  if a Credit  Enhancement Draw
Amount is specified in any Statement to Holders  prepared by the Master Servicer
pursuant to Section 4.01 of the Servicing Agreement,  the Notice for Payment (as
defined  in the  Credit  Enhancement  Instrument)  in the  amount of the  Credit
Enhancement Draw Amount to the Credit Enhancer no later than 2:00 P.M., New York
City time, on the second Business Day prior to the applicable Payment Date. Upon
receipt of such Credit  Enhancement  Draw Amount in accordance with the terms of
the Credit  Enhancement  Instrument,  the  Indenture  Trustee shall deposit such
Credit  Enhancement  Draw Amount in the  Payment  Account  for  distribution  to
Holders  (and the  Certificate  Paying  Agent  on  behalf  of the  Certificates)
pursuant to Section 3.05.

         In addition, a draw may be made under the Credit Enhancement Instrument
in respect of any Avoided Payment (as defined in and pursuant to the terms and
conditions of the Credit Enhancement Instrument) and the Indenture Trustee shall
submit a Notice for Payment with respect thereto together with the other
documents required to be delivered to the Credit Enhancer pursuant to the Credit
Enhancement Instrument in connection with a draw in respect of any Avoided
Payment.

         (c) In the event that any Additional Credit Enhancement Instruments are
issued pursuant to Section 4.01 and Section 2.02(B) of the Insurance  Agreement,
the Indenture  Trustee shall be authorized to make draws thereon  subject to the
terms and conditions therein.

         Section 3.29 REPLACEMENT CREDIT ENHANCEMENT INSTRUMENT. In the event of
a Credit  Enhancer  Default or if the claims paying ability rating of the Credit
Enhancer is downgraded and such  downgrade  results in a downgrading of the then
current  rating of the Securities  (in each case, a  "Replacement  Event"),  the
Issuing Entity, at its expense,  in accordance with and upon satisfaction of the
conditions set forth in the Credit Enhancement  Instrument,  including,  without
limitation, payment in full of all amounts owed to the Credit Enhancer, may, but
shall not be required  to,  substitute a new surety bond or surety bonds for the
existing  Credit  Enhancement  Instrument  or may  arrange for any other form of
credit  enhancement;  provided,  however,  that in each case the Notes  shall be
rated no lower  than the  rating  assigned  by each  Rating  Agency to the Notes
immediately  prior to such  Replacement  Event and the timing and  mechanism for
drawing on such new credit  enhancement  shall be  reasonably  acceptable to the
Indenture  Trustee and provided  further  that the  premiums  under the proposed
credit  enhancement  shall not exceed such  premiums  under the existing  Credit
Enhancement  Instrument.  It shall be a  condition  to  substitution  of any new
credit  enhancement  that there be  delivered  to the  Indenture  Trustee (i) an
Opinion of Counsel, acceptable in form to the Indenture Trustee, from counsel to
the provider of such new credit  enhancement with respect to the  enforceability
thereof and such other matters as the Indenture  Trustee may require and (ii) an
Opinion of Counsel to the effect that such substitution  would not (a) adversely
affect  in any  material  respect  the tax  status of the Notes or (b) cause the
Issuing  Entity to be subject to a tax at the entity level.  Upon receipt of the
items referred to above and payment of all amounts owing to the Credit  Enhancer
and the  taking  of  physical  possession  of the new  credit  enhancement,  the
Indenture  Trustee shall,  within five Business Days  following  receipt of such
items and such  taking of  physical  possession,  deliver  the  replaced  Credit
Enhancement  Instrument  to the  Credit  Enhancer.  In  the  event  of any  such
replacement  the Issuing  Entity shall give written notice thereof to the Rating
Agencies.

<PAGE>

                                   ARTICLE IV

               The Notes; Satisfaction and Discharge of Indenture

         Section 4.01 THE NOTES.  The Notes shall be registered in the name of a
nominee  designated by the Depository.  Beneficial Owners will hold interests in
the Notes through the book-entry facilities of the Depository in minimum initial
Principal Balances of $1,000 and integral multiples of $1,000 in excess thereof.

         The Indenture Trustee may for all purposes (including the making of
payments due on the Notes) deal with the Depository as the authorized
representative of the Beneficial Owners with respect to the Notes for the
purposes of exercising the rights of Holders of Notes hereunder. Except as
provided in the next succeeding paragraph of this Section 4.01, the rights of
Beneficial Owners with respect to the Notes shall be limited to those
established by law and agreements between such Beneficial Owners and the
Depository and Depository Participants. Except as provided in Section 4.08,
Beneficial Owners shall not be entitled to definitive certificates for the Notes
as to which they are the Beneficial Owners. Requests and directions from, and
votes of, the Depository as Holder of the Notes shall not be deemed inconsistent
if they are made with respect to different Beneficial Owners. The Indenture
Trustee may establish a reasonable record date in connection with solicitations
of consents from or voting by Noteholders and give notice to the Depository of
such record date. Without the consent of the Issuing Entity and the Indenture
Trustee, no Note may be transferred by the Depository except to a successor
Depository that agrees to hold such Note for the account of the Beneficial
Owners.

         In the event the Depository Trust Company resigns or is removed as
Depository, the Indenture Trustee with the approval of the Issuing Entity may
appoint a successor Depository. If no successor Depository has been appointed
within 30 days of the effective date of the Depository's resignation or removal,
each Beneficial Owner shall be entitled to certificates representing the Notes
it beneficially owns in the manner prescribed in Section 4.08.

         The Notes shall, on original issue, be executed on behalf of the
Issuing Entity by the Owner Trustee, not in its individual capacity but solely
as Owner Trustee, authenticated by the Note Registrar and delivered by the
Indenture Trustee to or upon the order of the Issuing Entity.

         Section 4.02  REGISTRATION  OF AND LIMITATIONS ON TRANSFER AND EXCHANGE
OF NOTES;  APPOINTMENT OF CERTIFICATE REGISTRAR.  The Issuing Entity shall cause
to be kept at its Corporate  Trust Office a Note  Register in which,  subject to
such  reasonable  regulations  as it may  prescribe,  the Note  Registrar  shall
provide for the registration of Notes and of transfers and exchanges of Notes as
herein provided.

         Subject to the restrictions and limitations set forth below, upon
surrender for registration of transfer of any Note at the Corporate Trust
Office, the Indenture Trustee shall execute and the Note Registrar shall
authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Notes in authorized initial Security Balances
evidencing the same aggregate Percentage Interests.

         Subject to the foregoing, at the option of the Noteholders, Notes may
be exchanged for other Notes of like tenor or, in each case in authorized
initial Principal Balances evidencing the same aggregate Percentage Interests
upon surrender of the Notes to be exchanged at the Corporate Trust Office of the
Note Registrar. Whenever any Notes are so surrendered for exchange, the
Indenture Trustee shall execute and the Note Registrar shall authenticate and
deliver the Notes which the Noteholder making the exchange is entitled to
receive. Each Note presented or surrendered for registration of transfer or
exchange shall (if so required by the Note Registrar) be duly endorsed by, or be
accompanied by a written instrument of transfer in form reasonably satisfactory
to the Note Registrar duly executed by, the Holder thereof or his attorney duly
authorized in writing with such signature guaranteed by a commercial bank or
trust company located or having a correspondent located in the city of New York.
Notes delivered upon any such transfer or exchange will evidence the same
obligations, and will be entitled to the same rights and privileges, as the
Notes surrendered.

         No service charge shall be made for any registration of transfer or
exchange of Notes, but the Note Registrar shall require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any registration of transfer or exchange of Notes.

         All Notes surrendered for registration of transfer and exchange shall
be cancelled by the Note Registrar and delivered to the Indenture Trustee for
subsequent destruction without liability on the part of either.

         The Issuing Entity hereby appoints __________________________________
as Certificate Registrar to keep at its Corporate Trust Office a Certificate
Register pursuant to Section 3.09 of the Trust Agreement in which, subject to
such reasonable regulations as it may prescribe, the Certificate Registrar shall
provide for the registration of Certificates and of transfers and exchanges
thereof pursuant to Section 3.05 of the Trust Agreement.
__________________________________ hereby accepts such appointment.

         Section 4.03  MUTILATED,  DESTROYED,  LOST OR STOLEN NOTES.  If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives  evidence to its satisfaction of the destruction,  loss or theft of any
Note,  and (ii) there is delivered  to the  Indenture  Trustee such  security or
indemnity as may be required by it to hold the Issuing  Entity and the Indenture
Trustee harmless, then, in the absence of notice to the Issuing Entity, the Note
Registrar or the  Indenture  Trustee that such Note has been  acquired by a bona
fide purchaser,  and provided that the  requirements of Section 8-405 of the UCC
are met, the Issuing  Entity shall  execute,  and upon its request the Indenture
Trustee shall  authenticate and deliver,  in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Note, a replacement Note of the same Class;
provided,  however,  that if any such destroyed,  lost or stolen Note, but not a
mutilated Note, shall have become or within seven days shall be due and payable,
instead  of  issuing  a  replacement  Note,  the  Issuing  Entity  may pay  such
destroyed, lost or stolen Note when so due or payable without surrender thereof.
If, after the delivery of such replacement Note or payment of a destroyed,  lost
or stolen Note  pursuant to the proviso to the preceding  sentence,  a bona fide
purchaser of the original Note in lieu of which such replacement Note was issued
presents for payment such original  Note,  the Issuing  Entity and the Indenture
Trustee  shall be entitled to recover such  replacement  Note (or such  payment)
from the Person to whom it was delivered or any Person  taking such  replacement
Note  from  such  Person  to whom such  replacement  Note was  delivered  or any
assignee of such Person, except a bona fide purchaser,  and shall be entitled to
recover upon the security or  indemnity  provided  therefor to the extent of any
loss,  damage,  cost or expense  incurred by the Issuing Entity or the Indenture
Trustee in connection therewith.

         Upon the issuance of any replacement Note under this Section 4.03, the
Issuing Entity may require the payment by the Holder of such Note of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other reasonable expenses (including the fees and
expenses of the Indenture Trustee) connected therewith.

         Every replacement Note issued pursuant to this Section 4.03 in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute an
original additional contractual obligation of the Issuing Entity, whether or not
the mutilated, destroyed, lost or stolen Note shall be at any time enforceable
by anyone, and shall be entitled to all the benefits of this Indenture equally
and proportionately with any and all other Notes duly issued hereunder.

         The provisions of this Section 4.03 are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Notes.

         Section  4.04  PERSONS  DEEMED  OWNERS.  Prior to due  presentment  for
registration of transfer of any Note, the Issuing Entity,  the Indenture Trustee
and any agent of the  Issuing  Entity  or the  Indenture  Trustee  may treat the
Person in whose name any Note is registered (as of the day of  determination) as
the owner of such Note for the purpose of receiving payments of principal of and
interest, if any, on such Note and for all other purposes whatsoever, whether or
not such Note be overdue,  and neither the Issuing Entity, the Indenture Trustee
nor any agent of the Issuing  Entity or the Indenture  Trustee shall be affected
by notice to the contrary.

         Section  4.05   CANCELLATION.   All  Notes   surrendered  for  payment,
registration  of transfer,  exchange or redemption  shall, if surrendered to any
Person other than the Indenture  Trustee,  be delivered to the Indenture Trustee
and shall be promptly cancelled by the Indenture Trustee. The Issuing Entity may
at any  time  deliver  to the  Indenture  Trustee  for  cancellation  any  Notes
previously  authenticated  and delivered  hereunder which the Issuing Entity may
have  acquired in any manner  whatsoever,  and all Notes so  delivered  shall be
promptly cancelled by the Indenture Trustee.  No Notes shall be authenticated in
lieu of or in exchange for any Notes cancelled as provided in this Section 4.05,
except as expressly permitted by this Indenture. All cancelled Notes may be held
or  disposed  of by the  Indenture  Trustee  in  accordance  with  its  standard
retention or disposal  policy as in effect at the time unless the Issuing Entity
shall  direct by an Issuer  Request  that they be  destroyed  or returned to it;
provided however, that such Issuer Request is timely and the Notes have not been
previously disposed of by the Indenture Trustee.

         Section 4.06 BOOK-ENTRY NOTES. The Notes, upon original issuance,  will
be issued in the form of typewritten Notes representing the Book-Entry Notes, to
be delivered to The Depository Trust Company, the initial Depository,  by, or on
behalf of, the Issuing  Entity.  Such Notes shall initially be registered on the
Note Register in the name of Cede & Co., the nominee of the initial  Depository,
and no  Beneficial  Owner  will  receive a  Definitive  Note  representing  such
Beneficial  Owner's  interest in such Note,  except as provided in Section 4.08.
Unless and until  definitive,  fully registered  Notes (the "Definitive  Notes")
have been issued to Beneficial Owners pursuant to Section 4.08:

                  (i) the provisions of this Section 4.06 shall be in full force
         and effect;

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

                  (iii) to the extent that the  provisions  of this Section 4.06
         conflict with any other provisions of this Indenture, the provisions of
         this Section 4.06 shall control;

                  (iv) the rights of Beneficial  Owners shall be exercised  only
         through the Depository and shall be limited to those established by law
         and agreements  between such Owners of Notes and the Depository  and/or
         the  Depository  Participants.  Unless and until  Definitive  Notes are
         issued  pursuant  to Section  4.08,  the initial  Depository  will make
         book-entry transfers among the Depository  Participants and receive and
         transmit  payments of  principal  of and  interest on the Notes to such
         Depository Participants; and

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

         Section  4.07  NOTICES  TO  DEPOSITORY.  Whenever  a  notice  or  other
communication  to the Note Holders is required under this Indenture,  unless and
until Definitive  Notes shall have been issued to Beneficial  Owners pursuant to
Section  4.08,   the   Indenture   Trustee  shall  give  all  such  notices  and
communications  specified  herein  to be given to  Holders  of the  Notes to the
Depository, and shall have no obligation to the Beneficial Owners.

         Section 4.08  DEFINITIVE  NOTES. If (i) the  Administrator  advises the
Indenture Trustee in writing that the Depository is no longer willing or able to
properly  discharge  its  responsibilities  with  respect  to the  Notes and the
Administrator is unable to locate a qualified successor,  (ii) the Administrator
at its  option  advises  the  Indenture  Trustee  in  writing  that it elects to
terminate  the  book-entry  system  through  the  Depository  or (iii) after the
occurrence  of an Event of  Default,  Owners  of Notes  representing  beneficial
interests  aggregating at least a majority of the Security Balances of the Notes
advise the Depository in writing that the  continuation  of a book-entry  system
through the  Depository  is no longer in the best  interests  of the  Beneficial
Owners, then the Depository shall notify all Beneficial Owners and the Indenture
Trustee  of the  occurrence  of any  such  event  and  of  the  availability  of
Definitive Notes to Beneficial Owners requesting the same. Upon surrender to the
Indenture Trustee of the typewritten Notes  representing the Book-Entry Notes by
the  Depository,  accompanied by registration  instructions,  the Issuing Entity
shall execute and the Indenture Trustee shall  authenticate the Definitive Notes
in  accordance  with the  instructions  of the  Depository.  None of the Issuing
Entity,  the Note  Registrar or the  Indenture  Trustee  shall be liable for any
delay in delivery of such  instructions and may conclusively  rely on, and shall
be protected in relying on, such  instructions.  Upon the issuance of Definitive
Notes, the Indenture Trustee shall recognize the Holders of the Definitive Notes
as Noteholders.

         Section 4.09 TAX  TREATMENT.  The Issuing  Entity has entered into this
Indenture,  and the Notes will be issued,  with the intention that, for federal,
state and local income,  single  business and franchise tax purposes,  the Notes
will qualify as  indebtedness  of the Issuing  Entity.  The Issuing  Entity,  by
entering into this Indenture, and each Noteholder, by its acceptance of its Note
(and each  Beneficial  Owner by its  acceptance of an interest in the applicable
Book-Entry Note), agree to treat the Notes for federal,  state and local income,
single  business  and  franchise  tax  purposes as  indebtedness  of the Issuing
Entity.

         Section 4.10  SATISFACTION  AND DISCHARGE OF INDENTURE.  This Indenture
shall cease to be of further  effect with  respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.06, 3.09,
3.16, 3.18 and 3.19, (v) the rights, obligations and immunities of the Indenture
Trustee  hereunder  (including the rights of the Indenture Trustee under Section
6.07 and the  obligations of the Indenture  Trustee under Section 4.11) and (vi)
the rights of Noteholders as  beneficiaries  hereof with respect to the property
so deposited with the Indenture  Trustee  payable to all or any of them, and the
Indenture Trustee, on demand of and at the expense of the Issuing Entity,  shall
execute  proper  instruments  acknowledging  satisfaction  and discharge of this
Indenture with respect to the Notes, when

                  (A)      either

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

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

                                    a. have become due and payable,

                                    b. will  become due and payable at the Final
                           Scheduled  Payment  Date within one year,  or

                                    c. have  been  called  for early  redemption
                           pursuant to Section 5.02.

and the Issuing Entity, in the case of a. or b. above, has irrevocably deposited
or caused to be irrevocably deposited with the Indenture Trustee cash or direct
obligations of or obligations guaranteed by the United States of America (which
will mature prior to the date such amounts are payable), in trust for such
purpose, in an amount sufficient to pay and discharge the entire indebtedness on
such Notes and Certificates then outstanding not theretofore delivered to the
Indenture Trustee for cancellation when due on the Final Scheduled Payment Date;

                  (B) the Issuing Entity has paid or caused to be paid all other
         sums payable hereunder and under the Insurance Agreement by the Issuing
         Entity; and

                  (C) the Issuing Entity has delivered to the Indenture  Trustee
         and the Credit Enhancer an Officer's Certificate, an Opinion of Counsel
         and each  meeting the  applicable  requirements  of Section  10.01 each
         stating that all conditions  precedent  herein provided for relating to
         the  satisfaction  and discharge of this  Indenture  have been complied
         with and,  if the  Opinion  of  Counsel  relates  to a deposit  made in
         connection with Section 4.10(A)(2)b.  above, such opinion shall further
         be to the effect that such deposit  will not have any material  adverse
         tax  consequences  to  the  Issuing  Entity,  any  Noteholders  or  any
         Certificateholders.

         Section 4.11  APPLICATION OF TRUST MONEY. All monies deposited with the
Indenture  Trustee  pursuant to Section  4.10 hereof  shall be held in trust and
applied  by it,  in  accordance  with  the  provisions  of the  Notes  and  this
Indenture,  to the  payment,  either  directly  or through  any Paying  Agent or
Certificate Paying Agent, as the Indenture Trustee may determine, to the Holders
of  Securities,  of all sums due and to become due  thereon  for  principal  and
interest;  but such monies need not be segregated from other funds except to the
extent required herein or required by law.

         Section 4.12  SUBROGATION AND  COOPERATION.  (a) The Issuing Entity and
the Indenture  Trustee  acknowledge  that (i) to the extent the Credit  Enhancer
makes payments under the Credit  Enhancement  Instrument on account of principal
of or interest on the Notes, the Credit Enhancer will be fully subrogated to the
rights of such Holders to receive such  principal  and interest from the Issuing
Entity,  and (ii) the Credit  Enhancer shall be paid such principal and interest
but only from the sources and in the manner provided herein and in the Insurance
Agreement for the payment of such principal and interest.

         The Indenture Trustee shall cooperate in all respects with any
reasonable request by the Credit Enhancer for action to preserve or enforce the
Credit Enhancer's rights or interest under this Indenture or the Insurance
Agreement without limiting the rights of the Noteholders as otherwise set forth
in the Indenture, including, without limitation, upon the occurrence and
continuance of a default under the Insurance Agreement, a request to take any
one or more of the following actions:

                  (i) institute  Proceedings  for the  collection of all amounts
         then  payable on the Notes,  or under this  Indenture in respect to the
         Notes and all amounts payable under the Insurance Agreement enforce any
         judgment  obtained and collect from the Issuing Entity monies  adjudged
         due;

                  (ii) sell the Trust Estate or any portion thereof or rights or
         interest  therein,  at one or more public or private  Sales  called and
         conducted in any manner permitted by law;

                  (iii) file or record all Assignments  that have not previously
         been recorded;

                  (iv) institute  Proceedings from time to time for the complete
         or partial foreclosure of this Indenture; and

                  (v) exercise any remedies of a secured party under the Uniform
         Commercial  Code and take any other  appropriate  action to protect and
         enforce the rights and remedies of the Credit Enhancer hereunder.

         Section 4.13  REPAYMENT OF MONIES HELD BY PAYING  AGENT.  In connection
with the satisfaction and discharge of this Indenture with respect to the Notes,
all monies then held by any Administrator other than the Indenture Trustee under
the provisions of this  Indenture with respect to such Notes shall,  upon demand
of the Issuing Entity,  be paid to the Indenture  Trustee to be held and applied
according to Section 3.05 and thereupon such Paying Agent shall be released from
all further liability with respect to such monies.

         Section 4.14 TEMPORARY NOTES. Pending the preparation of any Definitive
Notes,  the  Issuing  Entity may execute  and upon its  written  direction,  the
Indenture  Trustee may authenticate  and make available for delivery,  temporary
Notes that are  printed,  lithographed,  typewritten,  photocopied  or otherwise
produced,  in any  denomination,  substantially  of the tenor of the  Definitive
Notes in lieu of which  they are issued  and with such  appropriate  insertions,
omissions,  substitutions  and other  variations as the officers  executing such
Notes may determine, as evidenced by their execution of such Notes.

         If temporary Notes are issued, the Issuing Entity will cause Definitive
Notes to be prepared without unreasonable delay. After the preparation of the
Definitive Notes, the temporary Notes shall be exchangeable for Definitive Notes
upon surrender of the temporary Notes at the office or agency of the Indenture
Trustee, without charge to the Holder. Upon surrender for cancellation of any
one or more temporary Notes, the Issuing Entity shall execute and the Indenture
Trustee shall authenticate and make available for delivery, in exchange
therefor, Definitive Notes of authorized denominations and of like tenor and
aggregate principal amount. Until so exchanged, such temporary Notes shall in
all respects be entitled to the same benefits under this Indenture as Definitive
Notes.

<PAGE>

                                   ARTICLE V

                              Default and Remedies

         Section  5.01  EVENTS OF DEFAULT.  "Event of  Default,"  wherever  used
herein, shall have the meaning provided in Article I; provided, however, that no
Event of Default will occur under clause (i) or clause (ii) of the definition of
"Event of Default" if the Issuing  Entity fails to make payments of principal of
and  interest  on the  Notes  so  long as the  Credit  Enhancer  makes  payments
sufficient therefore under the Credit Enhancement Instrument.

         The Issuing Entity shall deliver to the Indenture Trustee and the
Credit Enhancer, within five days after learning of the occurrence of an Event
of Default, written notice in the form of an Officer's Certificate of any event
which with the giving of notice and the lapse of time would become an Event of
Default under clause (iii) of the definition of "Event of Default", its status
and what action the Issuing Entity is taking or proposes to take with respect
thereto.

         Section 5.02 ACCELERATION OF MATURITY;  RESCISSION AND ANNULMENT. If an
Event of Default should occur and be continuing or if the Master  Servicer shall
purchase all of the  Mortgage  Loans  pursuant to Section 8.08 of the  Servicing
Agreement,  then and in every such case the Indenture  Trustee or the Holders of
Notes  representing  not less than a majority  of the  Security  Balances of all
Notes may declare the Notes to be  immediately  due and payable,  by a notice in
writing  to the  Issuing  Entity  (and to the  Indenture  Trustee  if  given  by
Noteholders),  and upon any such declaration the unpaid principal amount of such
Class of Notes,  together with accrued and unpaid  interest  thereon through the
date of acceleration, shall become immediately due and payable. Unless the prior
written consent of the Credit Enhancer shall have been obtained by the Indenture
Trustee, the Payment Date upon which such accelerated payment is due and payable
shall not be a Payment  Date under the  Credit  Enhancement  Instrument  and the
Indenture  Trustee  shall not be  authorized  under  Section 3.28 to make a draw
therefor.

         At any time after such declaration of acceleration of maturity with
respect to an Event of Default has been made and before a judgment or decree for
payment of the money due has been obtained by the Indenture Trustee as
hereinafter in this Article V provided, the Holders of Notes representing a
majority of the Security Balances of all Notes, by written notice to the Issuing
Entity and the Indenture Trustee, may waive the related Event of Default and
rescind and annul such declaration and its consequences if:

                  (i)  the  Issuing  Entity  has  paid  or  deposited  with  the
         Indenture Trustee a sum sufficient to pay:

                           (A) all  payments of principal of and interest on the
                  Notes and all other  amounts that would then be due  hereunder
                  or upon the Notes if the Event of Default  giving rise to such
                  acceleration had not occurred; and

                           (B)  all  sums  paid  or  advanced  by the  Indenture
                  Trustee hereunder and the reasonable  compensation,  expenses,
                  disbursements  and advances of the  Indenture  Trustee and its
                  agents and counsel; and

                  (ii) all Events of Default,  other than the  nonpayment of the
         principal of the Notes that has become due solely by such acceleration,
         have been cured or waived as provided in Section 5.12.

         No such rescission shall affect any subsequent default or impair any
right consequent thereto.

         Section 5.03  COLLECTION OF  INDEBTEDNESS  AND SUITS FOR ENFORCEMENT BY
INDENTURE TRUSTEE.  (a) The Issuing Entity covenants that if (i) default is made
in the  payment  of any  interest  on any Note  when the  same  becomes  due and
payable,  and such default  continues for a period of five days, or (ii) default
is made in the payment of the principal of or any  installment  of the principal
of any Note when the same becomes due and payable,  the Issue shall, upon demand
of the Indenture Trustee, pay to it, for the benefit of the Holders of Notes and
of the Credit  Enhancer,  the whole amount then due and payable on the Notes for
principal  and  interest,  with  interest  upon the  overdue  principal,  and in
addition  thereto such further  amount as shall be sufficient to cover the costs
and expenses of  collection,  including the reasonable  compensation,  expenses,
disbursements and advances of the Indenture Trustee and its agents and counsel.

         (b) In case the Issuing Entity shall fail forthwith to pay such amounts
upon such demand,  the Indenture  Trustee,  in its own name and as trustee of an
express trust, subject to the provisions of Section 10.17 hereof may institute a
Proceeding for the  collection of the sums so due and unpaid,  and may prosecute
such  Proceeding to judgment or final  decree,  and may enforce the same against
the  Issuing  Entity or other  obligor  upon the Notes and collect in the manner
provided by law out of the property of the Issuing  Entity or other  obligor the
Notes, wherever situated, the monies adjudged or decreed to be payable.

         (c) If an Event of Default  occurs  and is  continuing,  the  Indenture
Trustee  subject  to the  provisions  of  Section  10.17  hereof  may,  as  more
particularly provided in Section 5.04, in its discretion, proceed to protect and
enforce its rights and the rights of the Noteholders and the Credit Enhancer, by
such appropriate  Proceedings as the Indenture Trustee shall deem most effective
to protect and enforce any such rights,  whether for the specific enforcement of
any  covenant or  agreement  in this  Indenture or in aid of the exercise of any
power  granted  herein,  or to  enforce  any  other  proper  remedy  or legal or
equitable right vested in the Indenture Trustee by this Indenture or by law.

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

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

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

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

                  (iv)  to file  such  proofs  of  claim  and  other  papers  or
         documents  as may be necessary or advisable in order to have the claims
         of the  Indenture  Trustee  or the  Holders  of  Notes  allowed  in any
         judicial  proceedings relative to the Issuing Entity, its creditors and
         its property;

and any trustee, receiver, liquidator, custodian or other similar official in
any such Proceeding is hereby authorized by each of such Noteholders to make
payments to the Indenture Trustee, and, in the event that the Indenture Trustee
shall consent to the making of payments directly to such Noteholders, to pay to
the Indenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Indenture Trustee, each predecessor Indenture Trustee and
their respective agents, attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee except as a result of negligence or bad faith.

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

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

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

         Section 5.04  REMEDIES;  PRIORITIES.  (a) If an Event of Default  shall
have occurred and be continuing, the Indenture Trustee subject to the provisions
of Section 10.17 hereof may do one or more of the following  (subject to Section
5.05):

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

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

                  (iii)  exercise any remedies of a secured  party under the UCC
         and take any other appropriate action to protect and enforce the rights
         and remedies of the Indenture Trustee, the Holders of the Notes and the
         Credit Enhancer; and

                  (iv) sell the Trust Estate or any portion thereof or rights or
         interest  therein,  at one or more public or private  sales  called and
         conducted in any manner permitted by law;

provided, however, that the Indenture Trustee may not sell or otherwise
liquidate the Trust Estate following an Event of Default, unless (A) the
Indenture Trustee obtains the consent of the Holders of 100% of the aggregate
Principal Balances of the Notes and the Credit Enhancer, which consent will not
be unreasonably withheld, (B) the proceeds of such sale or liquidation
distributable to Holders are sufficient to discharge in full all amounts then
due and unpaid upon the Notes for principal and interest and to reimburse the
Credit Enhancer for any amounts drawn under the Credit Enhancement Instrument
and any other amounts due the Credit Enhancer under the Insurance Agreement or
(C) the Indenture Trustee determines that the Mortgage Loans will not continue
to provide sufficient funds for the payment of principal of and interest on the
Notes as they would have become due if the Notes had not been declared due and
payable, and the Indenture Trustee obtains the consent of the Credit Enhancer,
which consent will not be unreasonably withheld, and of the Holders of a
majority of the aggregate Principal Balances of the Notes. In determining such
sufficiency or insufficiency with respect to clause (B) and (C), the Indenture
Trustee may, but need not, obtain and rely upon an opinion of an Independent
investment banking or accounting firm of national reputation as to the
feasibility of such proposed action and as to the sufficiency of the Trust
Estate for such purpose. Notwithstanding the foregoing, so long as an Event of
Servicer Termination has not occurred, any Sale of the Trust Estate shall be
made subject to the continued Servicing of the Mortgage Loans by the Master
Servicer as provided in the Servicing Agreement.

         (b) If the Indenture Trustee collects any money or property pursuant to
this Article V, it shall pay out the money or property in the following order:

         FIRST:  to the Indenture Trustee for amounts due under Section 6.07;

         SECOND: to each Class of Noteholders for amounts due and unpaid on the
related Class of Notes for interest and to each Noteholder of such Class in each
case, ratably, without preference or priority of any kind, according to the
amounts due and payable on such Class of Notes for interest from amounts
available in the Trust Estate for such Noteholders;

         THIRD: to Holders of each Class of Notes for amounts due and unpaid on
the related Class of Notes for principal, from amounts available in the Trust
Estate for such Noteholders, and to each Noteholder of such Class in each case
ratably, without preference or priority of any kind, according to the amounts
due and payable on such Class of Notes for principal, until the Security
Balances of each Class of Notes is reduced to zero;

         FOURTH: to the Issuing Entity for amounts required to be distributed to
the  Certificateholders  in respect of interest  and  principal  pursuant to the
Trust Agreement;

         FIFTH:  to the  payment  of all  amounts  due and  owing to the  Credit
Enhancer under the Insurance Agreement;

         SIXTH:  to the Issuing Entity for amounts due under Article VIII of the
Trust Agreement; and

         SEVENTH: to the payment of the remainder, if any to the Issuing Entity
or any other person legally entitled thereto. The Indenture Trustee may fix a
record date and payment date for any payment to Noteholders pursuant to this
Section 5.04. At least 15 days before such record date, the Indenture Trustee
shall mail to each Noteholder a notice that states the record date, the payment
date and the amount to be paid.

         Section 5.05 OPTIONAL  PRESERVATION  OF THE TRUST ESTATE.  If the Notes
have been declared to be due and payable  under Section 5.02  following an Event
of Default and such declaration and its consequences have not been rescinded and
annulled,  the Indenture  Trustee may, but need not,  elect to take and maintain
possession of the Trust Estate.  It is the desire of the parties  hereto and the
Noteholders  that  there be at all times  sufficient  funds for the  payment  of
principal  of and  interest  on the Notes and other  obligations  of the Issuing
Entity including payment to the Credit Enhancer, and the Indenture Trustee shall
take such  desire  into  account  when  determining  whether  or not to take and
maintain  possession of the Trust  Estate.  In  determining  whether to take and
maintain  possession  of the Trust Estate,  the Indenture  Trustee may, but need
not,  obtain and rely upon an opinion of an  Independent  investment  banking or
accounting  firm of national  reputation as to the  feasibility of such proposed
action and as to the  sufficiency of the Trust Estate for such purpose.  Section

         5.06 LIMITATION OF SUITS. No Holder of any Note shall have any right to
institute any Proceeding, judicial or otherwise, with respect to this Indenture,
or for the  appointment  of a  receiver  or  trustee,  or for any  other  remedy
hereunder, unless and subject to the provisions of Section 10.17 hereof:

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

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

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

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

                  (v) no direction  inconsistent  with such written  request has
         been given to the  Indenture  Trustee  during such 60-day period by the
         Holders of a majority of the Security Balances of the Notes.

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

         In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of Notes,
each representing less than a majority of the Security Balances of the Notes,
the Indenture Trustee in its sole discretion may determine what action, if any,
shall be taken, notwithstanding any other provisions of this Indenture.

         Section 5.07  UNCONDITIONAL  RIGHTS OF NOTEHOLDERS TO RECEIVE PRINCIPAL
AND INTEREST. Notwithstanding any other provisions in this Indenture, the Holder
of any Note  shall have the  right,  which is  absolute  and  unconditional,  to
receive  payment of the  principal of and  interest,  if any, on such Note on or
after  the  respective  due  dates  thereof  expressed  in such  Note or in this
Indenture and to institute  suit for the  enforcement  of any such payment,  and
such right shall not be impaired without the consent of such Holder.

         Section  5.08  RESTORATION  OF RIGHTS AND  REMEDIES.  If the  Indenture
Trustee or any  Noteholder has instituted any Proceeding to enforce any right or
remedy  under  this  Indenture  and such  Proceeding  has been  discontinued  or
abandoned  for any  reason or has been  determined  adversely  to the  Indenture
Trustee or to such  Noteholder,  then and in every such case the Issuing Entity,
the Indenture Trustee and the Noteholders shall, subject to any determination in
such  Proceeding,  be  restored  severally  and  respectively  to  their  former
positions  hereunder,  and  thereafter  all rights and remedies of the Indenture
Trustee and the Noteholders shall continue as though no such Proceeding had been
instituted.

         Section 5.09 RIGHTS AND REMEDIES CUMULATIVE.  No right or remedy herein
conferred  upon or reserved to the Indenture  Trustee or to the  Noteholders  is
intended  to be  exclusive  of any other  right or remedy,  and every  right and
remedy shall,  to the extent  permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or  otherwise.  The  assertion or employment of any right or remedy
hereunder,  or  otherwise,   shall  not  prevent  the  concurrent  assertion  or
employment of any other appropriate right or remedy.

         Section  5.10 DELAY OR OMISSION  NOT A WAIVER.  No delay or omission of
the Indenture  Trustee or any Holder of any Note to exercise any right or remedy
accruing  upon any Event of  Default  shall  impair  any such right or remedy or
constitute  a waiver of any such Event of Default  or an  acquiescence  therein.
Every  right  and  remedy  given by this  Article  V or by law to the  Indenture
Trustee or to the  Noteholders  may be exercised from time to time, and as often
as may be deemed expedient,  by the Indenture Trustee or by the Noteholders,  as
the case may be.

         Section 5.11 CONTROL BY  NOTEHOLDERS.  The Holders of a majority of the
Security  Balances of Notes shall have the right to direct the time,  method and
place of conducting  any  Proceeding  for any remedy  available to the Indenture
Trustee with respect to the Notes or exercising any trust or power  conferred on
the Indenture Trustee; provided that:

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

                  (ii)  subject  to the  express  terms  of  Section  5.04,  any
         direction  to the  Indenture  Trustee  to sell or  liquidate  the Trust
         Estate shall be by Holders of Notes  representing not less than 100% of
         the Security Balances of Notes;

                  (iii) if the  conditions  set forth in Section  5.05 have been
         satisfied and the Indenture  Trustee  elects to retain the Trust Estate
         pursuant to such Section,  then any direction to the Indenture  Trustee
         by  Holders  of  Notes  representing  less  than  100% of the  Security
         Balances of Notes to sell or liquidate  the Trust Estate shall be of no
         force and effect; and

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

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

         Section 5.12 WAIVER OF PAST DEFAULTS.  Prior to the  declaration of the
acceleration  of the  maturity  of the Notes as provided  in Section  5.02,  the
Holders of Notes of not less than a majority  of the  Security  Balances  of the
Notes may waive any past Event of Default and its  consequences  except an Event
of Default (a) with respect to payment of principal of or interest on any of the
Notes or (b) in  respect of a  covenant  or  provision  hereof  which  cannot be
modified  or amended  without  the consent of the Holder of each Note or (c) the
waiver of which would  materially  and  adversely  affect the  interests  of the
Credit  Enhancer  or  modify  its  obligation   under  the  Credit   Enhancement
Instrument.  In the case of any such waiver,  the Issuing Entity,  the Indenture
Trustee and the Holders of the Notes shall be restored to their former positions
and rights  hereunder,  respectively;  but no such  waiver  shall  extend to any
subsequent or other Event of Default or impair any right consequent thereto.

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

         Section  5.13  UNDERTAKING  FOR COSTS.  All  parties to this  Indenture
agree, and each Holder of any Note by such Holder's  acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture,  or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture  Trustee,  the  filing  by any  party  litigant  in  such  suit  of an
undertaking  to pay the  costs of such  suit,  and that  such  court  may in its
discretion  assess  reasonable  costs,  including  reasonable  attorneys'  fees,
against  any party  litigant  in such suit,  having due regard to the merits and
good  faith of the  claims or  defenses  made by such  party  litigant;  but the
provisions  of this Section 5.13 shall not apply to (a) any suit  instituted  by
the Indenture  Trustee,  (b) any suit instituted by any Noteholder,  or group of
Noteholders, in each case holding in the aggregate more than 10% of the Security
Balances  of the  Notes or (c) any suit  instituted  by any  Noteholder  for the
enforcement  of the payment of  principal of or interest on any Note on or after
the respective due dates expressed in such Note and in this Indenture.

         Section  5.14 WAIVER OF STAY OR  EXTENSION  LAWS.  The  Issuing  Entity
covenants  (to the extent  that it may  lawfully  do so) that it will not at any
time  insist  upon,  or plead  or in any  manner  whatsoever,  claim or take the
benefit or advantage of, any stay or extension law wherever  enacted,  now or at
any time hereafter in force, that may affect the covenants or the performance of
this  Indenture;  and the Issuing  Entity (to the extent that it may lawfully do
so) hereby  expressly  waives  all  benefit or  advantage  of any such law,  and
covenants  that it shall not hinder,  delay or impede the execution of any power
herein  granted  to the  Indenture  Trustee,  but will  suffer  and  permit  the
execution of every such power as though no such law had been enacted.

         Section 5.15 SALE OF TRUST ESTATE.  (a) The power to effect any sale or
other  disposition  (a "Sale") of any  portion of the Trust  Estate  pursuant to
Section 5.04 is  expressly  subject to the  provisions  of Section 5.05 and this
Section  5.15.  The power to effect any such Sale shall not be  exhausted by any
one or more Sales as to any portion of the Trust Estate  remaining  unsold,  but
shall continue  unimpaired until the entire Trust Estate shall have been sold or
all  amounts  payable  on the  Notes  and  under  this  Indenture  and under the
Insurance Agreement shall have been paid. The Indenture Trustee may from time to
time postpone any public Sale by public  announcement made at the time and place
of such Sale.  The Indenture  Trustee hereby  expressly  waives its right to any
amount fixed by law as compensation for any Sale.

         (b) The Indenture  Trustee shall not in any private Sale sell the Trust
Estate, or any portion thereof, unless

                  (1) the Holders of all Notes and the Credit  Enhancer  consent
         to or direct the Indenture Trustee to make, such Sale, or

                  (2) the  proceeds  of such  Sale  would be not  less  than the
         entire amount which would be payable to the Noteholders under the Notes
         and the Credit  Enhancer  in respect of amounts  drawn under the Credit
         Enhancement  Instrument  and any other amounts due the Credit  Enhancer
         under the Insurance  Agreement,  in full payment  thereof in accordance
         with Section 5.02, on the Payment Date next succeeding the date of such
         Sale, or

                  (3) The Indenture Trustee determines,  in its sole discretion,
         that the  conditions  for  retention  of the Trust  Estate set forth in
         Section 5.05 cannot be satisfied (in making any such determination, the
         Indenture Trustee may rely upon an opinion of an Independent investment
         banking firm obtained and delivered as provided in Section  5.05),  and
         the Credit  Enhancer  consents to such Sale,  which consent will not be
         unreasonably  withheld and the Holders representing at least 66-2/3% of
         the Security Balances of the Notes consent to such Sale.

         The purchase by the Indenture Trustee of all or any portion of the
Trust Estate at a private Sale shall not be deemed a Sale or other disposition
thereof for purposes of this Section 5.15(b).

         (c) Unless the Holders and the Credit Enhancer have otherwise consented
or directed the Indenture  Trustee,  at any public Sale of all or any portion of
the Trust  Estate at which a minimum  bid equal to or  greater  than the  amount
described in paragraph (2) of  subsection  (b) of this Section 5.15 has not been
established  by the  Indenture  Trustee and no Person bids an amount equal to or
greater than such amount,  the  Indenture  Trustee  shall bid an amount at least
$1.00 more than the highest other bid.

         (d) In connection with a Sale of all or any portion of the Trust Estate

                  (1) any  Holder or  Holders  of Notes may bid for and with the
         consent of the Credit Enhancer  purchase the property offered for sale,
         and upon compliance with the terms of sale may hold, retain and possess
         and dispose of such property, without further accountability,  and may,
         in paying the purchase money therefor,  deliver any Notes or claims for
         interest  thereon in lieu of cash up to the amount  which  shall,  upon
         distribution of the net proceeds of such sale, be payable thereon,  and
         such Notes,  in case the amounts so payable  thereon shall be less than
         the amount due thereon,  shall be returned to the Holders thereof after
         being appropriately stamped to show such partial payment;

                  (2) the Indenture Trustee may bid for and acquire the property
         offered for Sale in connection with any Sale thereof,  and,  subject to
         any requirements of, and to the extent permitted by,  applicable law in
         connection  therewith,  may  purchase  all or any  portion of the Trust
         Estate in a private  sale,  and, in lieu of paying cash  therefor,  may
         make  settlement  for the purchase  price by  crediting  the gross Sale
         price against the sum of (A) the amount which would be distributable to
         the Holders of the Notes and Holders of Certificates  and amounts owing
         to the  Credit  Enhancer  as a result of such Sale in  accordance  with
         Section  5.04(b) on the Payment Date next  succeeding  the date of such
         Sale  and  (B) the  expenses  of the  Sale  and of any  Proceedings  in
         connection  therewith  which  are  reimbursable  to it,  without  being
         required to produce the Notes in order to complete  any such Sale or in
         order for the net Sale price to be credited against such Notes, and any
         property so acquired by the  Indenture  Trustee shall be held and dealt
         with by it in accordance with the provisions of this Indenture;

                  (3)  the  Indenture  Trustee  shall  execute  and  deliver  an
         appropriate  instrument of conveyance  transferring its interest in any
         portion of the Trust Estate in connection with a Sale thereof;

                  (4) the Indenture Trustee is hereby irrevocably  appointed the
         agent and attorney-in-fact of the Issuing Entity to transfer and convey
         its  interest in any portion of the Trust Estate in  connection  with a
         Sale thereof, and to take all action necessary to effect such Sale; and

                  (5) no purchaser or  transferee  at such a Sale shall be bound
         to  ascertain  the  Indenture  Trustee's  authority,  inquire  into the
         satisfaction  of any conditions  precedent or see to the application of
         any monies.

         Section 5.16 ACTION ON NOTES. The Indenture Trustee's right to seek and
recover  judgment on the Notes or under this Indenture  shall not be affected by
the seeking,  obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture  Trustee against the Issuing Entity or by the levy
of any  execution  under such  judgment  upon any portion of the Trust Estate or
upon any of the assets of the Issuing Entity. Any money or property collected by
the Indenture Trustee shall be applied in accordance with Section 5.04(b).

         Section 5.17  PERFORMANCE AND ENFORCEMENT OF CERTAIN  OBLIGATIONS.  (a)
Promptly  following  a request  from the  Indenture  Trustee to do so and at the
Administrator's  expense,  the Issuing  Entity in its  capacity as holder of the
Mortgage Loans,  shall take all such lawful action as the Indenture  Trustee may
request  to cause the  Issuing  Entity to compel or secure the  performance  and
observance  by the Seller and the Master  Servicer,  as  applicable,  of each of
their obligations to the Issuing Entity under or in connection with the Mortgage
Loan Purchase Agreement and the Servicing Agreement, and to exercise any and all
rights, remedies, powers and privileges lawfully available to the Issuing Entity
under or in  connection  with  the  Mortgage  Loan  Purchase  Agreement  and the
Servicing  Agreement to the extent and in the manner  directed by the  Indenture
Trustee, as pledgee of the Mortgage Loans, including the transmission of notices
of default on the part of the Seller or the Master  Servicer  thereunder and the
institution  of legal or  administrative  actions  or  proceedings  to compel or
secure  performance  by the  Seller  or the  Master  Servicer  of each of  their
obligations  under  the  Mortgage  Loan  Purchase  Agreement  and the  Servicing
Agreement.

         (b)  If an  Event  of  Default  has  occurred  and is  continuing,  the
Indenture  Trustee,  as pledgee of the Mortgage Loans,  subject to the rights of
the Credit  Enhancer  under the  Servicing  Agreement  may, and at the direction
(which  direction  shall be in writing  or by  telephone  (confirmed  in writing
promptly  thereafter)) of the Holders of 66-2/3% of the Security Balances of the
Notes shall, exercise all rights, remedies, powers, privileges and claims of the
Issuing Entity against the Seller or the Master  Servicer under or in connection
with the Mortgage Loan Purchase Agreement and the Servicing Agreement, including
the  right or power to take any  action  to  compel  or  secure  performance  or
observance by the Seller or the Master Servicer,  as the case may be, of each of
their  obligations  to the Issuing  Entity  thereunder  and to give any consent,
request,  notice,  direction,  approval,  extension or waiver under the Mortgage
Loan Purchase Agreement and the Servicing Agreement, as the case may be, and any
right of the Issuing Entity to take such action shall not be suspended.

<PAGE>

                                   ARTICLE VI

                              The Indenture Trustee

         Section  6.01 DUTIES OF INDENTURE  TRUSTEE.  (a) If an Event of Default
has occurred and is continuing,  the Indenture Trustee shall exercise the rights
and powers  vested in it by this  Indenture  and use the same degree of care and
skill in their  exercise  as a prudent  person  would  exercise or use under the
circumstances in the conduct of such person's own affairs.

         (b) Except during the continuance of an Event of Default:

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

                  (ii) in the  absence of bad faith on its part,  the  Indenture
         Trustee may  conclusively  rely, as to the truth of the  statements and
         the correctness of the opinions expressed therein, upon certificates or
         opinions  furnished  to the  Indenture  Trustee and  conforming  to the
         requirements of this Indenture;  however,  the Indenture  Trustee shall
         examine the certificates and opinions to determine  whether or not they
         conform to the requirements of this Indenture.

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

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

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

                  (iii) the  Indenture  Trustee shall not be liable with respect
         to any  action  it takes or omits to take in good  faith in  accordance
         with a  direction  received by it (A)  pursuant to Section  5.11 or (B)
         from the Credit Enhancer, which it is entitled to give under any of the
         Basic Documents.

         (d) The Indenture Trustee shall not be liable for interest on any money
received by it except as the  Indenture  Trustee  may agree in writing  with the
Issuing Entity.

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

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

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

         Section 6.02 RIGHTS OF INDENTURE TRUSTEE. (a) The Indenture Trustee may
rely on any  document  believed  by it to be genuine  and to have been signed or
presented by the proper person.  The Indenture  Trustee need not investigate any
fact or matter stated in the document.

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

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

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

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

         Section 6.03  INDIVIDUAL  RIGHTS OF INDENTURE  TRUSTEE.  The  Indenture
Trustee in its  individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuing  Entity or its Affiliates  with
the  same  rights  it  would  have  if  it  were  not  Indenture  Trustee.   Any
Administrator,  Note Registrar,  co-registrar or co-paying agent may do the same
with like rights.  However, the Indenture Trustee must comply with Sections 6.11
and 6.12.

         Section 6.04  INDENTURE  TRUSTEE'S  DISCLAIMER.  The Indenture  Trustee
shall not be responsible for and makes no  representation  as to the validity or
adequacy of this  Indenture or the Notes,  it shall not be  accountable  for the
Issuing  Entity's  use of the  proceeds  from the  Notes,  and it  shall  not be
responsible  for any statement of the Issuing  Entity in the Indenture or in any
document  issued in connection  with the sale of the Notes or in the Notes other
than the Indenture Trustee's certificate of authentication.

         Section 6.05 NOTICE OF EVENT OF DEFAULT.  If an Event of Default occurs
and is continuing  and if it is known to a Responsible  Officer of the Indenture
Trustee, the Indenture Trustee shall give notice thereof to the Credit Enhancer.
The Trustee shall mail to each Noteholder  notice of the Event of Default within
90 days after it occurs. Except in the case of an Event of Default in payment of
principal  of or interest on any Note,  the  Indenture  Trustee may withhold the
notice if and so long as a committee of its  Responsible  Officers in good faith
determines that withholding the notice is in the interests of Noteholders.

         Section  6.06 REPORTS BY INDENTURE  TRUSTEE TO HOLDERS.  The  Indenture
Trustee shall deliver to each Noteholder such  information as may be required to
enable  such holder to prepare its  federal  and state  income tax  returns.  In
addition, upon the Issuing Entity's written request, the Indenture Trustee shall
promptly furnish information  reasonably requested by the Issuing Entity that is
reasonably  available to the Indenture  Trustee to enable the Issuing  Entity to
perform its federal and state income tax reporting obligations.

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

         The Issuing Entity's payment obligations to the Indenture Trustee
pursuant to this Section 6.07 shall survive the discharge of this Indenture.
When the Indenture Trustee incurs expenses after the occurrence of an Event of
Default specified in Section 5.01(iv) or (v) with respect to the Issuing Entity,
the expenses are intended to constitute expenses of administration under Title
11 of the United States Code or any other applicable federal or state
bankruptcy, insolvency or similar law.

         Section  6.08  REPLACEMENT  OF INDENTURE  TRUSTEE.  No  resignation  or
removal of the Indenture  Trustee and no  appointment  of a successor  Indenture
Trustee  shall become  effective  until the  acceptance  of  appointment  by the
successor Indenture Trustee pursuant to this Section 6.08. The Indenture Trustee
may  resign  at any time by so  notifying  the  Issuing  Entity  and the  Credit
Enhancer. The Holders of a majority of Security Balances of the Notes may remove
the  Indenture  Trustee by so  notifying  the  Indenture  Trustee and the Credit
Enhancer and may appoint a successor Indenture Trustee. The Issuing Entity shall
remove the Indenture Trustee if:

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

                  (ii)  the   Indenture   Trustee  is  adjudged  a  bankrupt  or
         insolvent;

                  (iii) a receiver or other public  officer  takes charge of the
         Indenture Trustee or its property; or

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

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

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

         If a successor Indenture Trustee does not take office within 60 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuing Entity or the Holders of a majority of Security
Balances of the Notes may petition any court of competent jurisdiction for the
appointment of a successor Indenture Trustee.

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

         Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section, the Issuing Entity's and the Administrator's obligations under
Section 6.07 shall continue for the benefit of the retiring Indenture Trustee.

         Section 6.09 SUCCESSOR  INDENTURE  TRUSTEE BY MERGER.  If the Indenture
Trustee  consolidates  with,  merges  or  converts  into,  or  transfers  all or
substantially all its corporate trust business or assets to, another corporation
or banking  association,  the  resulting,  surviving or  transferee  corporation
without any further act shall be the successor Indenture Trustee; provided, that
such  corporation  or  banking  association  shall be  otherwise  qualified  and
eligible  under  Section 6.11.  The  Indenture  Trustee shall provide the Rating
Agencies prior written notice of any such transaction.

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

         Section 6.10 APPOINTMENT OF CO-INDENTURE  TRUSTEE OR SEPARATE INDENTURE
TRUSTEE.  (a)  Notwithstanding  any other  provisions of this Indenture,  at any
time, for the purpose of meeting any legal  requirement of any  jurisdiction  in
which any part of the Trust  Estate may at the time be  located,  the  Indenture
Trustee  shall have the power and may execute and  deliver  all  instruments  to
appoint one or more Persons to act as a co-trustee or  co-trustees,  or separate
trustee or separate  trustees,  of all or any part of the Trust,  and to vest in
such Person or Persons, in such capacity and for the benefit of the Noteholders,
such title to the Trust Estate,  or any part hereof,  and,  subject to the other
provisions of this Section, such powers, duties, obligations,  rights and trusts
as the Indenture Trustee may consider  necessary or desirable.  No co-trustee or
separate  trustee here under shall be required to meet the terms of  eligibility
as a successor  trustee under Section 6.11 and no notice to  Noteholders  of the
appointment  of any  co-trustee  or separate  trustee  shall be  required  under
Section 6.08 hereof.

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

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

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

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

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

         (d) Any separate  trustee or co-trustee may at any time  constitute the
Indenture Trustee, its agent or attorney-in-fact  with full power and authority,
to the extent not prohibited by law, to do any lawful act under or in 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 Indenture Trustee,  to the extent permitted by law, without the
appointment of a new or successor trustee.

         Section 6.11 ELIGIBILITY; DISQUALIFICATION. The Indenture Trustee shall
at all times satisfy the requirements of TIA ss. 310(a).  The Indenture  Trustee
shall have a combined capital and surplus of at least [$50,000,000] as set forth
in its most recent  published  annual  report of condition  and it or its parent
shall  have a  long-term  debt  rating of [Baa3]  or  better by  [Moody's].  The
Indenture  Trustee  shall  comply with TIA ss.  310(b),  including  the optional
provision  permitted  by the second  sentence  of TIA ss.  310(b)(9);  provided,
however,  that there shall be excluded from the  operation of TIA ss.  310(b)(1)
any indenture or indentures  under which other  securities of the Issuing Entity
are  outstanding  if the  requirements  for such  exclusion set forth in TIA ss.
310(b)(1) are met.

         Section 6.12 PREFERENTIAL  COLLECTION OF CLAIMS AGAINST ISSUING ENTITY.
The Indenture  Trustee shall comply with TIA ss. 311(a),  excluding any creditor
relationship  listed in TIA ss. 311(b). An Indenture Trustee who has resigned or
been removed shall be subject to TIA ss. 311(a) to the extent indicated.

         Section 6.13 REPRESENTATION AND WARRANTY.  The Indenture Trustee hereby
represents that:

                  (i) The  Indenture  Trustee  is  duly  organized  and  validly
         existing as a corporation  in good standing under the laws of the State
         of  ___________,  with power and authority to own its properties and to
         conduct its business as such  properties  are currently  owned and such
         business is presently conducted.

                  (ii) The  Indenture  Trustee  has the power and  authority  to
         execute and deliver this Indenture and to carry out its terms;  and the
         execution,  delivery and  performance  of this Indenture have been duly
         authorized by the Indenture Trustee by all necessary corporate action.

                  (iii) The  consummation  of the  transactions  contemplated by
         this Indenture and the  fulfillment of the terms hereof do not conflict
         with,  result in any breach of any of the terms and  provisions  of, or
         constitute  (with or without  notice or lapse of time) a default under,
         the articles of incorporation or bylaws of the Indenture Trustee or any
         agreement or other instrument to which the Indenture Trustee is a party
         or by which it is bound.

                  (iv) To the Indenture  Trustee's best knowledge,  there are no
         proceedings or  investigations  pending or threatened before any court,
         regulatory   body,   administrative   agency   or  other   governmental
         instrumentality  having  jurisdiction over the Indenture Trustee or its
         properties:  (A) asserting the invalidity of this Indenture (B) seeking
         to prevent the consummation of any of the transactions  contemplated by
         this  Indenture or (C) seeking any  determination  or ruling that might
         materially  and  adversely  affect  the  performance  by the  Indenture
         Trustee of its obligations under, or the validity or enforceability of,
         this Indenture.

         Section 6.14 DIRECTIONS TO INDENTURE TRUSTEE.  The Indenture Trustee is
hereby directed:

         (a) to accept the pledge of the  Mortgage  Loans and hold the assets of
the Trust in trust for the Noteholders;

         (b) to issue,  execute and deliver the Notes  substantially in the form
prescribed by Exhibit A in accordance with the terms of this Indenture; and

         (c) to take all other  actions as shall be  required to be taken by the
terms of this Indenture.

         Section 6.15 [Reserved]

         Section  6.16  INDENTURE  TRUSTEE  MAY OWN  SECURITIES.  The  Indenture
Trustee, in its individual or any other capacity may become the owner or pledgee
of  Securities  with the same  rights  it  would  have if it were not  Indenture
Trustee.

<PAGE>

                                  ARTICLE VII

                         Noteholders' Lists and Reports

         Section  7.01 ISSUING  ENTITY TO FURNISH  INDENTURE  TRUSTEE  NAMES AND
ADDRESSES  OF  NOTEHOLDERS.  The  Issuing  Entity  will  furnish  or cause to be
furnished to the Indenture Trustee (a) not more than five days after each Record
Date, a list, in such form as the Indenture Trustee may reasonably  require,  of
the names and  addresses of the Holders of Notes as of such Record Date,  (b) at
such other times as the Indenture Trustee and the Credit Enhancer may request in
writing, within 30 days after receipt by the Issuing Entity of any such request,
a list of similar  form and  content as of a date not more than 10 days prior to
the  time  such  list  is  furnished;  provided,  however,  that  so long as the
Indenture  Trustee is the Note  Registrar,  no such list shall be required to be
furnished.

         Section   7.02   PRESERVATION   OF   INFORMATION;   COMMUNICATIONS   TO
NOTEHOLDERS.  (a) The Indenture Trustee shall preserve,  in as current a form as
is  reasonably  practicable,  the names and  addresses  of the  Holders of Notes
contained in the most recent list furnished to the Indenture Trustee as provided
in Section 7.01 and the names and addresses of Holders of Notes  received by the
Indenture  Trustee in its capacity as Note Registrar.  The Indenture Trustee may
destroy any list  furnished  to it as provided in such Section 7.01 upon receipt
of a new list so furnished.

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

         (c) The Issuing  Entity,  the Indenture  Trustee and the Note Registrar
shall have the protection of TIA ss. 312(c).

         Section 7.03 REPORTS BY ISSUING ENTITY. (a) The Issuing Entity shall:

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

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

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

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

         Section  7.04  REPORTS BY  INDENTURE  TRUSTEE.  If  required by TIA ss.
313(a),  within 60 days after each January 1 beginning with January 1, 200_, the
Indenture  Trustee  shall mail to each  Noteholder as required by TIA ss. 313(c)
and to the Credit  Enhancer a brief report  dated as of such date that  complies
with TIA ss.  313(a).  The  Indenture  Trustee  also shall  comply  with TIA ss.
313(b).

         A copy of each report at the time of its mailing to Noteholders shall
be filed by the Indenture Trustee with the Commission and each stock exchange,
if any, on which the Notes are listed. The Issuing Entity shall notify the
Indenture Trustee if and when the Notes are listed on any stock exchange.

         Section 7.05 REPORTS FILED WITH SECURITIES AND EXCHANGE COMMISSION.

         (a) (i) Within 15 days  after each  Distribution  Date,  the  Indenture
Trustee shall, in accordance with industry  standards,  file with the Commission
via the Electronic Data Gathering and Retrieval System ("EDGAR"), a Distribution
Report on Form 10-D,  signed by the Master Servicer,  with a copy of the monthly
statement to be furnished by the Indenture  Trustee to the  Noteholders for such
Distribution  Date and detailing all data elements  specified in Item 1121(a) of
Regulation  AB as part of the monthly  statement;  provided  that the  Indenture
Trustee  shall  have  received  no later  than 2 days  prior  to the  date  such
Distribution  Report  on Form 10-D is  required  to be  filed,  all  information
required to be provided to the Indenture  Trustee as described in clause (a)(iv)
below.

                  (ii) The  Indenture  Trustee  will  prepare  and file  Current
Reports on Form 8-K in respect of the Trust,  signed by the Master Servicer,  as
and when required;  provided, that, the Indenture Trustee shall have received no
later  than one  Business  Day prior to the  filing  deadline  for such  Current
Report,  all  information,  data, and exhibits  required to be provided or filed
with such Current Report and required to be provided to the Indenture Trustee as
described in clause (a)(iv) below.

                  (iii) Prior to January 30 in each year commencing in 2007, the
Indenture Trustee shall, in accordance with industry  standards,  file a Form 15
Suspension  Notice with respect to the Trust Fund, if  applicable.  Prior to (x)
March 15, 2007 and (y) unless and until a Form 15  Suspension  Notice shall have
been filed, prior to March 15 of each year thereafter, the Master Servicer shall
provide the Indenture Trustee with an Annual Compliance Statement, together with
a copy of the Assessment of Compliance and Attestation Report to be delivered by
the Master Servicer pursuant to the Servicing Agreement  (including with respect
to any  subservicer  or  subcontractor,  if required to be filed).  Prior to (x)
March 31, 2007 and (y) unless and until a Form 15  Suspension  Notice shall have
been filed,  March 31 of each year  thereafter,  the  Indenture  Trustee  shall,
subject to subsection  (d) below,  file a Form 10-K, in substance  conforming to
industry standards, with respect to the Trust Fund. Such Form 10-K shall include
the Assessment of Compliance,  Attestation Report,  Annual Compliance Statements
and  other  documentation  provided  by  the  Master  Servicer  pursuant  to the
Servicing Agreement (including with respect to any subservicer or subcontractor,
if  required  to be filed) and with  respect to the  Indenture  Trustee  and the
Custodian,  and the Form 10-K  certification  signed by the Depositor;  provided
that the  Indenture  Trustee  shall have received no later than March 15 of each
calendar  year prior to the filing  deadline for the Form 10-K all  information,
data and  exhibits  required  to be  provided  or filed  with such Form 10-K and
required to be provided to the Indenture  Trustee as described in clause (a)(iv)
below.

                  (iv) As to each item of information required to be included in
any Form 10-D,  Form 8-K or Form 10-K,  the  Indenture  Trustee's  obligation to
include the information in the applicable  report is subject to receipt from the
entity that is indicated in Exhibit __ as the  responsible  party for  providing
that information,  if other than the Indenture Trustee,  as and when required as
described above. Each of the Master Servicer,  Seller and Depositor hereby agree
to notify and provide to the Indenture  Trustee all information that is required
to be included in any Form 10-D,  Form 8-K or Form 10-K,  with  respect to which
that entity is indicated in Exhibit __ as the  responsible  party for  providing
that  information.  The Swap  Provider  will be  obligated  pursuant to the Swap
Agreement  to provide  to the  Indenture  Trustee  any  information  that may be
required to be included in any Form 10-D,  Form 8-K or Form 10-K.  The Indenture
Trustee shall be responsible  for determining  the  significance  percentage (as
defined in Item 1115 of  Regulation  AB) of the Swap  Provider at any time.  The
Master  Servicer shall be responsible  for  determining  the pool  concentration
applicable  to any  subservicer  or  originator  at any time,  for  purposes  of
disclosure as required by Items 1117 and 1119 of Regulation AB.

The Depositor hereby grants to the Master Servicer a limited power of attorney
to sign each Form 10-D, Form 8-K and Form 10-K on behalf of the Depositor. Such
power of attorney shall continue until either the earlier of (x) receipt by the
Master Servicer from the Depositor of written termination of such power of
attorney and (y) the termination of the Trust Fund. The Depositor agrees to
promptly furnish to the Indenture Trustee, from time to time upon request, such
further information, reports and financial statements within its control related
to this Agreement, the Mortgage Loans as the Indenture Trustee reasonably deems
appropriate to prepare and file all necessary reports with the Commission. The
Indenture Trustee shall have no responsibility to file any items other than
those specified in this Section 7.05; provided, however, the Indenture Trustee
will cooperate with the Depositor in connection with any additional filings with
respect to the Trust Fund as the Depositor deems necessary under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). Copies of all reports
filed by the Indenture Trustee under the Exchange Act shall be sent to: the
Depositor c/o _____________, Attn: _____________, _____________, _____________,
_____________. Fees and expenses incurred by the Indenture Trustee in connection
with this Section 7.05 shall not be reimbursable from the Trust Fund.

         (b) In connection with the filing of any 10-K hereunder,  the Indenture
Trustee shall sign a  certification  (in the form attached hereto as Exhibit __)
for the  Depositor  regarding  certain  aspects  of the Form 10-K  certification
signed by the Depositor, provided, however, that the Indenture Trustee shall not
be required to undertake an analysis of any  accountant's  report attached as an
exhibit to the Form 10-K.

         (c) In  connection  with the filing of any 10-K  hereunder,  the Master
Servicer shall sign a certification  (in the form attached hereto as Exhibit __)
for the  benefit of the  Depositor  regarding  certain  aspects of the Form 10-K
certification  signed  by the  Depositor,  provided,  however,  that the  Master
Servicer  shall not be required  to  undertake  an analysis of any  accountant's
report attached as an exhibit to the Form 10-K.

         (d) The  Indenture  Trustee  shall  indemnify  and  hold  harmless  the
Depositor  and its  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 Indenture  Trustee's  obligations  under this Section
7.05 or the Indenture Trustee's  negligence,  bad faith or willful misconduct in
connection therewith.

         The Depositor shall indemnify and hold harmless the Indenture Trustee
and its 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 obligations of the Depositor under this Section 7.05 or the
Depositor's negligence, bad faith or willful misconduct in connection therewith.

         The Master Servicer shall indemnify and hold harmless the Indenture
Trustee and the Depositor 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 obligations of the
Master Servicer under this Section 7.05 or the Master Servicer's negligence, bad
faith or willful misconduct in connection therewith.

         If the indemnification provided for herein is unavailable or
insufficient to hold harmless the Depositor or the Indenture Trustee, as
applicable, then the defaulting party, in connection with a breach of its
respective obligations under this Section 7.05 or its respective negligence, bad
faith or willful misconduct in connection therewith, agrees that it shall
contribute to the amount paid or payable by the other parties as a result of the
losses, claims, damages or liabilities of the other party in such proportion as
is appropriate to reflect the relative fault and the relative benefit of the
Depositor on the one hand and the Indenture Trustee on the other.

(e) Nothing shall be construed from the foregoing subsections (a), (b) and (c)
to require the Indenture Trustee or any officer, director or Affiliate thereof
to sign any Form 10-K or any certification contained therein. Furthermore, the
inability of the Indenture Trustee to file a Form 10-K as a result of the lack
of required information as set forth in Section 7.05(a) or required signatures
on such Form 10-K or any certification contained therein shall not be regarded
as a breach by the Indenture Trustee of any obligation under this Agreement.

         This Section 7.05 may be amended without the consent of the
Noteholders.

<PAGE>

                                  ARTICLE VIII

                      Accounts, Disbursements and Releases

         Section  8.01  COLLECTION  OF  MONEY.  Except  as  otherwise  expressly
provided  herein,  the Indenture  Trustee may demand payment or delivery of, and
shall receive and collect,  directly and without  intervention  or assistance of
any fiscal agent or other intermediary,  all money and other property payable to
or receivable by the Indenture Trustee pursuant to this Indenture. The Indenture
Trustee shall apply all such money received by it as provided in this Indenture.
Except as otherwise expressly provided in this Indenture,  if any default occurs
in the making of any payment or  performance  under any  agreement or instrument
that is part of the Trust Estate,  the Indenture Trustee may take such action as
may be  appropriate  to enforce  such  payment  or  performance,  including  the
institution and prosecution of appropriate Proceedings. Any such action shall be
without prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.

         Section 8.02 TRUST  ACCOUNTS.  (a) On or prior to the Closing Date, the
Issuing Entity shall cause the Indenture  Trustee to establish and maintain,  in
the name of the Indenture  Trustee,  for the benefit of the  Noteholders and the
Certificate  Paying Agent,  on behalf of the  Certificateholders  and the Credit
Enhancer, the Payment Account as provided in Section 3.01 of this Indenture.

         (b) All  monies  deposited  from  time to time in the  Payment  Account
pursuant to the Servicing  Agreement and all deposits  therein  pursuant to this
Indenture  are for the benefit of the  Noteholders  and the  Certificate  Paying
Agent, on behalf of the  Certificateholders  and all investments  made with such
monies  including  all  income or other gain from such  investments  are for the
benefit of the Master Servicer as provided by the Servicing Agreement.

         On each Payment Date during the Funding Period the Indenture Trustee
shall withdraw Net Principal Collections from the Payment Account and deposit
Net Principal Collections to the Funding Account.

         On each Payment Date, the Indenture Trustee shall distribute all
amounts on deposit in the Payment Account (after giving effect to the withdrawal
referred to in the preceding paragraph) to Noteholders in respect of the Notes
and in its capacity as Certificate Paying Agent to Certificateholders in the
order of priority set forth in Section 3.05 (except as otherwise provided in
Section 5.04(b).

         The Master Servicer may direct the Indenture Trustee to invest any
funds in the Payment Account in Eligible Investments maturing no later than the
Business Day preceding each Payment Date and shall not be sold or disposed of
prior to the maturity. Unless otherwise instructed by the Master Servicer, the
Indenture Trustee shall invest all funds in the Payment Account in Eligible
Investments.

         (c) On or before the Closing Date the Issuing Entity shall open, at the
Corporate  Trust Office,  an account which shall be the "Funding  Account".  The
Master  Servicer  may  direct the  Indenture  Trustee to invest any funds in the
Funding Account in Eligible  Investments maturing no later than the Business Day
preceding  each  Payment  Date and shall not be sold or disposed of prior to the
maturity.  Unless  otherwise  instructed by the Master  Servicer,  the Indenture
Trustee  shall invest all funds in the Payment  Account in its  Corporate  Trust
Short Term Investment Fund so long as it is an Eligible  Investment.  During the
Funding Period,  any amounts received by the Indenture Trustee in respect of Net
Principal  Collections  for deposit in the Funding  Account,  together  with any
Eligible  Investments in which such monies are or will be invested or reinvested
during  the term of the  Notes,  shall be held by the  Indenture  Trustee in the
Funding  Account  as part of the  Trust  Estate,  subject  to  disbursement  and
withdrawal  as herein  provided.  Amounts on deposit in the  Funding  Account in
respect of Net Principal  Collections  may be withdrawn on each Deposit Date and
(1) paid to the Issuing Entity in payment for Additional Loans by the deposit of
such amount to the  Collection  Account and (2) at the end of the Funding Period
any amounts  remaining in the Funding Account after the withdrawal called for by
clause (1) shall be  deposited  in the  Payment  Account to be  included  in the
payment of  principal  on the  Payment  Date that is the last day of the Funding
Period.

         (d) (i) Any  investment  in the  institution  with  which  the  Funding
Account  is  maintained  may  mature  on such  Payment  Date and (ii) any  other
investment  may  mature on such  Payment  Date if the  Indenture  Trustee  shall
advance funds on such Payment Date to the Funding  Account in the amount payable
on such  investment on such Payment Date,  pending receipt thereof to the extent
necessary to make distributions on the Notes and the Certificates) and shall not
be sold or disposed of prior to maturity.

         Section 8.03 OFFICER'S CERTIFICATE. The Indenture Trustee shall receive
at least  [seven] days notice when  requested by the Issuing  Entity to take any
action pursuant to Section 8.05(a),  accompanied by copies of any instruments to
be executed,  and the Indenture  Trustee  shall also require,  as a condition to
such action, an Officer's Certificate, in form and substance satisfactory to the
Indenture  Trustee,  stating the legal effect of any such action,  outlining the
steps  required  to  complete  the  same,  and  concluding  that all  conditions
precedent to the taking of such action have been complied with.

         Section  8.04  TERMINATION  UPON  DISTRIBUTION  TO  NOTEHOLDERS.   This
Indenture and the respective  obligations  and  responsibilities  of the Issuing
Entity  and the  Indenture  Trustee  created  hereby  shall  terminate  upon the
distribution  to  Noteholders,  Certificate  Paying  Agent,  on  behalf  of  the
Certificateholders  and the  Indenture  Trustee of all  amounts  required  to be
distributed pursuant to Article III; provided,  however,  that in no event shall
the trust created  hereby  continue  beyond the  expiration of 21 years from the
death  of the  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.

         Section 8.05 RELEASE OF TRUST ESTATE. (a) Subject to the payment of its
fees  and  expenses,  the  Indenture  Trustee  may,  and  when  required  by the
provisions of this Indenture shall, execute instruments to release property from
the lien of this Indenture,  or convey the Indenture  Trustee's  interest in the
same, in a manner and under  circumstances  that are not  inconsistent  with the
provisions of this  Indenture.  No party relying upon an instrument  executed by
the Indenture  Trustee as provided in Article VIII  hereunder  shall be bound to
ascertain the Indenture  Trustee's  authority,  inquire into the satisfaction of
any conditions precedent, or see to the application of any monies.

         (b) The Indenture Trustee shall, at such time as (i) there are no Notes
Outstanding,  (ii) all sums due the Indenture Trustee pursuant to this Indenture
have been  paid,  and (iii) all sums due the  Credit  Enhancer  have been  paid,
release any  remaining  portion of the Trust  Estate that secured the Notes from
the lien of this Indenture.

         [(c) The Indenture Trustee shall release property from the lien of this
Indenture pursuant to this Section 8.05 only upon receipt of an request from the
Issuing Entity accompanied by an [Officers' Certificate], [an Opinion of
Counsel,] and a letter from the Credit Enhancer, stating that the Credit
Enhancer has no objection to such request from the Issuing Entity.]

         Section 8.06  SURRENDER OF NOTES UPON FINAL  PAYMENT.  By acceptance of
any Note,  the Holder  thereof  agrees to surrender  such Note to the  Indenture
Trustee  promptly,  prior to such  Noteholder's  receipt  of the  final  payment
thereon.

<PAGE>

                                   ARTICLE IX

                             Supplemental Indentures

         Section 9.01  SUPPLEMENTAL  INDENTURES  WITHOUT CONSENT OF NOTEHOLDERS.
(a)  Without the consent of the Holders of any Notes but with the consent of the
Credit Enhancer and prior notice to the Rating Agencies and the Credit Enhancer,
the Issuing  Entity and the  Indenture  Trustee,  when  authorized  by an Issuer
Request,  at any  time  and  from  time to  time,  may  enter  into  one or more
indentures  supplemental  hereto (which shall  conform to the  provisions of the
Trust Indenture Act as in force at the date of the execution  thereof),  in form
satisfactory to the Indenture Trustee, for any of the following purposes:

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

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

                  (iii) to add to the covenants of the Issuing  Entity,  for the
         benefit of the Holders of the Notes, or to surrender any right or power
         herein conferred upon the Issuing Entity;

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

                  (v) to cure  any  ambiguity,  to  correct  or  supplement  any
         provision  herein  or  in  any  supplemental   indenture  that  may  be
         inconsistent  with any other  provision  herein or in any  supplemental
         indenture;

                  (vi) to make any other  provisions  with respect to matters or
         questions   arising  under  this  Indenture  or  in  any   supplemental
         indenture;   provided,  that  such  action  shall  not  materially  and
         adversely affect the interests of the Holders of the Notes;

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

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

provided, however, that no such indenture supplements shall be entered into
unless the Indenture Trustee shall have received an Opinion of Counsel that
entering into such indenture supplement will not have any material adverse tax
consequences to the Noteholders.

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

         (b) The Issuing Entity and the Indenture Trustee, when authorized by an
Issuer Request, may, also without the consent of any of the Holders of the Notes
but with the  consent  of the  Credit  Enhancer  and prior  notice to the Rating
Agencies  and the  Credit  Enhancer,  enter  into  an  indenture  or  indentures
supplemental  hereto for the purpose of adding any provisions to, or changing in
any  manner or  eliminating  any of the  provisions  of,  this  Indenture  or of
modifying  in any  manner  the  rights of the  Holders  of the Notes  under this
Indenture;  provided,  however,  that such action  shall not, as evidenced by an
Opinion of Counsel,  (i) adversely  affect in any material respect the interests
of any  Noteholder  or (ii) cause the Issuing  Entity to be subject to an entity
level tax.

         Section 9.02 SUPPLEMENTAL  INDENTURES WITH CONSENT OF NOTEHOLDERS.  The
Issuing Entity and the Indenture Trustee,  when authorized by an Issuer Request,
also may, with prior notice to the Rating Agencies and, with the written consent
of the Credit  Enhancer  and with the  consent of the Holders of not less than a
majority of the Security  Balances of each Class of Notes affected  thereby,  by
Act of such Holders  delivered to the Issuing Entity and the Indenture  Trustee,
enter into an indenture  or  indentures  supplemental  hereto for the purpose of
adding any provisions  to, or changing in any manner or  eliminating  any of the
provisions  of, this  Indenture  or of modifying in any manner the rights of the
Holders  of the Notes  under this  Indenture;  provided,  however,  that no such
supplemental  indenture  shall,  without  the consent of the Holder of each Note
affected thereby:

                  (i) change the date of payment of any installment of principal
         of or interest on any Note, or reduce the principal  amount  thereof or
         the interest rate  thereon,  change the  provisions  of this  Indenture
         relating to the  application of collections  on, or the proceeds of the
         sale of, the Trust Estate to payment of principal of or interest on the
         Notes, or change any place of payment where, or the coin or currency in
         which, any Note or the interest thereon is payable, or impair the right
         to  institute  suit  for  the  enforcement  of the  provisions  of this
         Indenture  requiring the  application of funds available  therefor,  as
         provided  in  Article V, to the  payment of any such  amount due on the
         Notes on or after the respective due dates thereof;

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

                  (iii)  modify or alter the  provisions  of the  proviso to the
         definition of the term  "Outstanding"  or modify or alter the exception
         in the definition of the term "Holder";

                  (iv) reduce the  percentage  of the  Security  Balances of the
         Notes  required to direct the  Indenture  Trustee to direct the Issuing
         Entity to sell or liquidate the Trust Estate pursuant to Section 5.04;

                  (v)  modify  any  provision  of this  Section  9.02  except to
         increase  any  percentage  specified  herein or to provide that certain
         additional  provisions of this Indenture or the Basic Documents  cannot
         be  modified  or waived  without the consent of the Holder of each Note
         affected thereby;

                  (vi) modify any of the  provisions  of this  Indenture in such
         manner as to affect the  calculation  of the  amount of any  payment of
         interest or principal  due on any Note on any Payment  Date  (including
         the   calculation  of  any  of  the   individual   components  of  such
         calculation); or

                  (vii) permit the creation of any lien ranking prior to or on a
         parity with the lien of this  Indenture with respect to any part of the
         Trust Estate or, except as otherwise permitted or contemplated  herein,
         terminate  the  lien of this  Indenture  on any  property  at any  time
         subject  hereto  or  deprive  the  Holder  of any Note of the  security
         provided by the lien of this  Indenture;  and provided,  further,  that
         such action shall not, as evidenced by an Opinion of Counsel, cause the
         Issuing Entity to be subject to an entity level tax.

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

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

         Promptly after the execution by the Issuing Entity and the Indenture
Trustee of any supplemental indenture pursuant to this Section 9.02, the
Indenture Trustee shall mail to the Holders of the Notes to which such amendment
or supplemental indenture relates a notice setting forth in general terms the
substance of such supplemental indenture. Any failure of the Indenture Trustee
to mail such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such supplemental indenture.

         Section 9.03 EXECUTION OF  SUPPLEMENTAL  INDENTURES.  In executing,  or
permitting  the  additional  trusts  created  by,  any  supplemental   indenture
permitted by this Article IX or the  modification  thereby of the trusts created
by this  Indenture,  the  Indenture  Trustee  shall be entitled to receive,  and
subject to Sections 6.01 and 6.02,  shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental  indenture is
authorized or permitted by this Indenture.  The Indenture Trustee may, but shall
not be obligated to, enter into any such supplemental indenture that affects the
Indenture  Trustee's own rights,  duties,  liabilities or immunities  under this
Indenture or otherwise.

         Section 9.04 EFFECT OF  SUPPLEMENTAL  INDENTURE.  Upon the execution of
any supplemental  indenture  pursuant to the provisions  hereof,  this Indenture
shall be and shall be deemed to be modified and amended in accordance  therewith
with  respect  to  the  Notes  affected  thereby,  and  the  respective  rights,
limitations of rights,  obligations,  duties,  liabilities and immunities  under
this Indenture of the Indenture  Trustee,  the Issuing Entity and the Holders of
the Notes shall  thereafter  be  determined,  exercised  and enforced  hereunder
subject in all respects to such modifications and amendments,  and all the terms
and conditions of any such  supplemental  indenture shall be and be deemed to be
part of the terms and conditions of this Indenture for any and all purposes.

         Section 9.05  CONFORMITY  WITH TRUST  INDENTURE ACT. Every amendment of
this  Indenture  and every  supplemental  indenture  executed  pursuant  to this
Article IX shall conform to the  requirements of the Trust Indenture Act as then
in effect so long as this  Indenture  shall  then be  qualified  under the Trust
Indenture Act.

         Section  9.06  REFERENCE  IN NOTES TO  SUPPLEMENTAL  INDENTURES.  Notes
authenticated  and delivered after the execution of any  supplemental  indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a  notation  in form  approved  by the  Indenture  Trustee as to any matter
provided  for in such  supplemental  indenture.  If the  Issuing  Entity  or the
Indenture  Trustee shall so determine,  new Notes so modified as to conform,  in
the  opinion  of the  Indenture  Trustee  and the  Issuing  Entity,  to any such
supplemental  indenture  may be prepared and executed by the Issuing  Entity and
authenticated and delivered by the Indenture Trustee in exchange for Outstanding
Notes.

<PAGE>

                                   ARTICLE X

                                  Miscellaneous

         Section 10.01 COMPLIANCE  CERTIFICATES AND OPINIONS,  ETC. (a) Upon any
application  or request by the Issuing  Entity to the Indenture  Trustee to take
any action  under any  provision  of this  Indenture,  the Issuing  Entity shall
furnish to the  Indenture  Trustee and to the Credit  Enhancer  (i) an Officer's
Certificate stating that all conditions precedent,  if any, provided for in this
Indenture  relating to the proposed  action have been  complied with and (ii) an
Opinion  of  Counsel  stating  that in the  opinion  of such  counsel  all  such
conditions precedent,  if any, have been complied with, except that, in the case
of any such  application or request as to which the furnishing of such documents
is  specifically  required by any  provision of this  Indenture,  no  additional
certificate or opinion need be furnished.

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

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

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

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

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

                           (5) if the Signer of such  Certificate  or Opinion is
                  required  to be  Independent,  the  Statement  required by the
                  definition of the term "Independent".

         (b) (i) Prior to the  deposit of any  Collateral  or other  property or
securities  with the  Indenture  Trustee  that is to be made the  basis  for the
release of any property or securities subject to the lien of this Indenture, the
Issuing Entity shall, in addition to any obligation  imposed in Section 10.01(a)
or elsewhere in this  Indenture,  furnish to the Indenture  Trustee an Officer's
Certificate  certifying  or stating  the  opinion of each  person  signing  such
certificate as to the fair value (within 90 days of such deposit) to the Issuing
Entity of the Collateral or other property or securities to be so deposited.

                  (ii) Whenever the Issuing Entity is required to furnish to the
         Indenture  Trustee an Officer's  Certificate  certifying or stating the
         opinion of any signer thereof as to the matters described in clause (i)
         above,  the Issuing Entity shall also deliver to the Indenture  Trustee
         an Independent Certificate as to the same matters, if the fair value to
         the Issuing  Entity of the  securities  to be so  deposited  and of all
         other such  securities made the basis of any such withdrawal or release
         since the commencement of the  then-current  fiscal year of the Issuing
         Entity, as set forth in the certificates  delivered  pursuant to clause
         (i) above and this clause (ii), is 10% or more of the Security Balances
         of the Notes, but such a certificate need not be furnished with respect
         to any  securities  so  deposited,  if the fair  value  thereof  to the
         Issuing  Entity as set forth in the related  Officer's  Certificate  is
         less than $25,000 or less than one percent of the Security  Balances of
         the Notes.

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

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

                  (v)  Notwithstanding  any  provision  of this  Indenture,  the
         Issuing Entity may,  without  compliance  with the  requirements of the
         other provisions of this Section 10.01, (A) collect,  sell or otherwise
         dispose  of the  Mortgage  Loans  as and to  the  extent  permitted  or
         required by the Basic  Documents  or (B) make cash  payments out of the
         Payment Account as and to the extent permitted or required by the Basic
         Documents  [,  so long  as the  Issuing  Entity  shall  deliver  to the
         Indenture  Trustee  every  six  months,  commencing  _____________,  an
         Officer's  Certificate  of the  Issuing  Entity  stating  that  all the
         dispositions  of Collateral  described in clauses (A) or (B) above that
         occurred  during the preceding six calendar months were in the ordinary
         course of the Issuing  Entity's  business and that the proceeds thereof
         were applied in accordance with the Basic Documents].

         Section 10.02 FORM OF DOCUMENTS  DELIVERED TO INDENTURE TRUSTEE. In any
case where  several  matters are required to be  certified  by, or covered by an
opinion of, any specified  Person,  it is not necessary that all such matters be
certified  by, or covered by the opinion of, only one such Person,  or that they
be so certified or covered by only one document, but one such Person may certify
or give an  opinion  with  respect  to some  matters  and one or more other such
Persons as to other matters,  and any such Person may certify or give an opinion
as to such matters in one or several documents.

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

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

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

         Section   10.03  ACTS  OF   NOTEHOLDERS.   (a)  Any  request,   demand,
authorization,  direction,  notice,  consent, waiver or other action provided by
this  Indenture  to be  given or taken by  Noteholders  may be  embodied  in and
evidenced by one or more  instruments of  substantially  similar tenor signed by
such Noteholders in person or by agents duly appointed in writing; and except as
herein otherwise expressly provided such action shall become effective when such
instrument or instruments are delivered to the Indenture Trustee,  and, where it
is  hereby  expressly  required,  to the  Issuing  Entity.  Such  instrument  or
instruments (and the action embodied  therein and evidenced  thereby) are herein
sometimes referred to as the "Act" of the Noteholders signing such instrument or
instruments.  Proof  of  execution  of  any  such  instrument  or  of a  writing
appointing  any such agent shall be sufficient for any purpose of this Indenture
and (subject to Section 6.01)  conclusive in favor of the Indenture  Trustee and
the Issuing Entity, if made in the manner provided in this Section 10.03.

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

         (c) The ownership of Notes shall be proved by the Note Registrar.

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

         Section 10.04  NOTICES,  ETC., TO INDENTURE  TRUSTEE,  ISSUING  ENTITY,
CREDIT  ENHANCER  AND  RATING  AGENCIES.  Any  request,  demand,  authorization,
direction,  notice,  consent,  waiver or Act of Note holders or other  documents
provided or permitted by this Indenture shall be in writing and if such request,
demand, authorization,  direction, notice, consent, waiver or act of Noteholders
is to be made upon, given or furnished to or filed with:

                  (i) the Indenture  Trustee by any Noteholder or by the Issuing
         Entity shall be sufficient for every purpose  hereunder if made, given,
         furnished or filed in writing to or with the  Indenture  Trustee at the
         Corporate Trust Office.  The Indenture  Trustee shall promptly transmit
         any notice  received by it from the  Noteholders to the Issuing Entity,
         or

                  (ii) the  Issuing  Entity by the  Indenture  Trustee or by any
         Noteholder  shall be  sufficient  for  every  purpose  hereunder  if in
         writing and mailed  first-class,  postage prepaid to the Issuing Entity
         addressed to: BNP Paribas  Mortgage ABS LLC Trust Series 200_ - ______,
         in care of  [Name  of  Owner  Trustee]  _________________,  __________,
         ______________, Attention of  _________________________________________
         with  a  copy  to  the  Administrator  at  ________________  Attention:
         __________   __________________________,   or  at  any  other   address
         previously furnished in writing to the Indenture Trustee by the Issuing
         Entity or the Administrator. The Issuing Entity shall promptly transmit
         any  notice  received  by it  from  the  Noteholders  to the  Indenture
         Trustee, or

                  (iii) the Credit Enhancer by the Issuing Entity, the Indenture
         Trustee or by any  Noteholders  shall be  sufficient  for every purpose
         hereunder to in writing and mailed,  first-class  postage pre-paid,  or
         personally  delivered  or  telecopied  to:  [Name of Credit  Enhancer],
         ________________,       ________,      _______________,      Attention:
         _________________,        ___________________________,        Telephone
         ______________.  Telecopier  ______________.  The Credit Enhancer shall
         promptly  transmit any notice  received by it from the Issuing  Entity,
         the  Indenture  Trustee or the  Noteholders  to the  Issuing  Entity or
         Indenture Trustee, as the case may be.

         Notices required to be given to the Rating Agencies by the Issuing
Entity, the Indenture Trustee or the Owner Trustee shall be in writing,
personally delivered or mailed by certified mail, return receipt requested, to
(i) in the case of [Moody's], at the following address: [Moody's Investors
Service, Inc., ABS Monitoring Department, 99 Church Street, New York, New York
10007] and (ii) in the case of [Standard & Poor's], at the following address:
[Standard & Poor's Ratings Group, 26 Broadway (15th Floor), New York, New York
10004, Attention of Asset Backed Surveillance Department]; or as to each of the
foregoing, at such other address as shall be designated by written notice to the
other parties.

         Section  10.05 NOTICES TO  NOTEHOLDERS;  WAIVER.  Where this  Indenture
provides  for  notice  to  Noteholders  of  any  event,  such  notice  shall  be
sufficiently  given (unless  otherwise herein expressly  provided) if in writing
and mailed,  first-class,  postage prepaid to each  Noteholder  affected by such
event,  at such Person's as it appears on the Note Register,  not later than the
latest date, and not earlier than the earliest  date,  prescribed for the giving
of such  notice.  In any case  where  notice  to  Noteholders  is given by mail,
neither  the  failure to mail such notice nor any defect in any notice so mailed
to any particular  Noteholder  shall affect the  sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner herein
provided shall  conclusively  be presumed to have been duly given  regardless of
whether such notice is in fact actually received.

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

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

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

         Section 10.06 ALTERNATE PAYMENT AND NOTICE PROVISIONS.  Notwithstanding
any provision of this Indenture or any of the Notes to the contrary, the Issuing
Entity may enter into any  agreement  with any Holder of a Note  providing for a
method of payment,  or notice by the Indenture  Trustee or any  Administrator to
such Holder,  that is different from the methods  provided for in this Indenture
for such payments or notices.  The Issuing Entity shall furnish to the Indenture
Trustee a copy of each such  agreement  and the  Indenture  Trustee  shall cause
payments to be made and notices to be given in accordance with such agreements.

         Section  10.07  CONFLICT  WITH TRUST  INDENTURE  ACT. If any  provision
hereof  limits,  qualifies or conflicts  with another  provision  hereof that is
required to be included in this  Indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control.

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

         Section  10.08  EFFECT OF  HEADINGS.  The Article and Section  headings
herein are for convenience only and shall not affect the construction hereof.

         Section 10.09  SUCCESSORS AND ASSIGNS.  All covenants and agreements in
this Indenture and the Notes by the Issuing Entity shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents.

         Section 10.10 SEPARABILITY.  In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining  provisions shall not in any way be affected
or impaired thereby.

         Section  10.11  BENEFITS  OF  INDENTURE.  The Credit  Enhancer  and its
successors  and assigns shall be a third-party  beneficiary to the provisions of
this Indenture.  Nothing in this Indenture or in the Notes,  express or implied,
shall give to any  Person,  other than the parties  hereto and their  successors
hereunder,  and the Noteholders,  and any other party secured hereunder, and any
other Person with an  ownership  interest in any part of the Trust  Estate,  any
benefit or any legal or equitable right, remedy or claim under this Indenture.

         Section 10.12 LEGAL  HOLIDAYS.  In any case where the date on which any
payment  is due shall not be a Business  Day,  then  (notwithstanding  any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next  succeeding  Business  Day with the same  force  and
effect as if made on the date on which  nominally  due,  and no  interest  shall
accrue for the period from and after any such nominal date.

         Section  10.13  GOVERNING  LAW.  THIS  INDENTURE  SHALL BE CONSTRUED IN
ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW  YORK,  WITHOUT  REFERENCE  TO ITS
CONFLICT OF LAW  PROVISIONS,  AND THE  OBLIGATIONS,  RIGHTS AND  REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         Section  10.14  COUNTERPARTS.  This  Indenture  may be  executed in any
number  of  counterparts,  each of which so  executed  shall be  deemed to be an
original,  but all such counterparts  shall together  constitute but one and the
same instrument.

         Section 10.15  RECORDING OF INDENTURE.  If this Indenture is subject to
recording in any appropriate public recording  offices,  such recording is to be
effected by the Issuing  Entity and at its expense  accompanied by an Opinion of
Counsel  (which  may be counsel to the  Indenture  Trustee or any other  counsel
reasonably  acceptable  to the  Indenture  Trustee)  to  the  effect  that  such
recording is necessary either for the protection of the Noteholders or any other
Person secured  hereunder or for the  enforcement of any right or remedy granted
to the Indenture Trustee under this Indenture.

         Section  10.16  ISSUING  ENTITY  OBLIGATION.  No recourse may be taken,
directly or indirectly,  with respect to the  obligations of the Issuing Entity,
the Owner Trustee or the Indenture  Trustee on the Notes or under this Indenture
or any  certificate  or  other  writing  delivered  in  connection  herewith  or
therewith,  against  (i) the  Indenture  Trustee  or the  Owner  Trustee  in its
individual  capacity,  (ii) any owner of a  beneficial  interest  in the Issuing
Entity or (iii) any  partner,  owner,  beneficiary,  agent,  officer,  director,
employee  or  agent  of the  Indenture  Trustee  or  the  Owner  Trustee  in its
individual capacity,  any holder of a beneficial interest in the Issuing Entity,
the Owner Trustee or the Indenture  Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee in its individual capacity, except as any
such Person may have expressly  agreed (it being  understood  that the Indenture
Trustee  and the Owner  Trustee  have no such  obligations  in their  individual
capacity) and except that any such partner,  owner or beneficiary shall be fully
liable,  to the extent provided by applicable law, for any unpaid  consideration
for stock, unpaid capital contribution or failure to pay any installment or call
owing to such entity. For all purposes of this Indenture,  in the performance of
any duties or  obligations of the Issuing  Entity  hereunder,  the Owner Trustee
shall be subject to, and entitled to the  benefits of, the terms and  provisions
of Article VI, VII and VIII of the Trust Agreement.

         Section 10.17 NO PETITION. The Indenture Trustee, by entering into this
Indenture,  and each Noteholder,  by accepting a Note, hereby covenant and agree
that they will not at any time  institute  against the  Depositor or the Issuing
Entity,  or join in any institution  against the Depositor or the Issuing Entity
of, any  bankruptcy,  reorganization,  arrangement,  insolvency  or  liquidation
proceedings,  or other  proceedings  under any  United  States  federal or state
bankruptcy or similar law in  connection  with any  obligations  relating to the
Notes, this Indenture or any of the Basic Documents.

         Section 10.18 INSPECTION. The Issuing Entity agrees that, on reasonable
prior  notice,  it shall permit any  representative  of the  Indenture  Trustee,
during the Issuing  Entity's  normal business hours, to examine all the books of
account, records, reports and other papers of the Issuing Entity, to make copies
and  extracts  therefrom,  to cause  such  books to be  audited  by  Independent
certified  public  accountants,  and to discuss  the Issuing  Entity's  affairs,
finances  and  accounts  with the  Issuing  Entity's  officers,  employees,  and
Independent  certified public  accountants,  all at such reasonable times and as
often as may be  reasonably  requested.  The  Indenture  Trustee shall and shall
cause its  representatives  to hold in confidence all such information except to
the extent  disclosure may be required by law (and all  reasonable  applications
for  confidential  treatment are  unavailing)  and except to the extent that the
Indenture  Trustee may reasonably  determine that such  disclosure is consistent
with its obligations hereunder.

         Section 10.19  AUTHORITY OF THE  ADMINISTRATOR.  Each of the parties to
this Indenture  acknowledges  that the Issuing Entity and the Owner Trustee have
each appointed the  Administrator  to act as its agent to perform the duties and
obligations of the Issuing Entity hereunder.  Unless otherwise instructed by the
Issuing Entity or the Owner Trustee,  copies of all notices,  requests,  demands
and other  documents to be delivered to the Issuing  Entity or the Owner Trustee
pursuant to the terms hereof shall be  delivered  to the  Administrator.  Unless
otherwise  instructed by the Issuing Entity or the Owner  Trustee,  all notices,
requests,  demands and other  documents  to be executed  or  delivered,  and any
action to be taken,  by the Issuing Entity or the Owner Trustee  pursuant to the
terms  hereof  may be  executed,  delivered  and/or  taken by the  Administrator
pursuant to the Administration Agreement.

<PAGE>

         IN WITNESS WHEREOF, the Issuing Entity and the Indenture 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.

                                        BNP  PARIBAS  MORTGAGE  ABS LLC
                                        TRUST  SERIES 200_ - _____,  as
                                        Issuing Entity

                                        By: ___________________________
                                        not in its individual  capacity
                                        but solely as Owner Trustee

                                        By: ___________________________
                                            Name:
                                            Title:

                                        _______________________________,
                                        as   Indenture   Trustee,    as
                                        Certificate Paying Agent and as
                                        Note Registrar

                                        By: ___________________________
                                            Name:
                                            Title:

________________________________________
hereby   accepts  the   appointment   as
Certificate  Paying  Agent  pursuant  to
Section  3.03 hereof and as  Certificate
Registrar   pursuant  to  Section   4.02
hereof.

By: ____________________________________
Name:
Title:

<PAGE>

STATE OF [NEW YORK]                 )
                                    ) ss.:
COUNTY OF [NEW YORK]                )

         On this ____ day of __________, before me personally appeared
______________, to me known, who being by me duly sworn, did depose and say,
that he resides at _________________, __________________ _____, that he is the
of the Owner Trustee, one of the corporations described in and which executed
the above instrument; that he knows the seal of said corporation; that the seal
affixed to said instrument is such corporate seal; that it was so affixed by
order of the Board of Directors of said corporation; and that he signed his name
thereto by like order.

                                                 Notary Public

[NOTARIAL SEAL]

<PAGE>

STATE OF [NEW YORK]                 )
                                    ) ss.:
COUNTY OF [NEW YORK]                )

         On this ____ day of __________, before me personally appeared , to me
known, who being by me duly sworn, did depose and say, that he resides at
____________________, that he is the ______________ of ________________, as
Indenture Trustee, one of the corporations described in and which executed the
above instrument; that he knows the seal of said corporation; that the seal
affixed to said instrument is such corporate seal; that it was so affixed by
order of the Board of Directors of said corporation; and that he signed his name
thereto by like order.

                                                 Notary Public

[NOTARIAL SEAL]

<PAGE>

STATE OF [NEW YORK]                 )
                                    ) ss.:
COUNTY OF [NEW YORK]                )

         On this ____ day of __________, before me personally appeared , to me
known, who being by me duly sworn, did depose and say, that he resides at
________________________, that he is an ________________ of _______________, as
Indenture Trustee, one of the corporations described in and which executed the
above instrument; that he knows the seal of said corporation; that the seal
affixed to said instrument is such corporate seal; that it was so affixed by
order of the Board of Directors of said corporation; and that he signed his name
thereto by like order.

                                                 Notary Public

[NOTARIAL SEAL]

<PAGE>

                                   EXHIBIT A-1

                              FORM OF CLASS A NOTES

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

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUING ENTITY, AND IS LIMITED IN
RIGHT OF PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST AND THE NOTE INSURANCE
POLICY AS PROVIDED IN THE INDENTURE REFERRED TO BELOW. THE ISSUING ENTITY IS NOT
OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS NOTE.

PRINCIPAL OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

<PAGE>

                BNP PARIBAS MORTGAGE ABS LLC TRUST SERIES 200_-_
                              MORTGAGE-BACKED NOTES
                                     CLASS A

AGGREGATE NOTE PRINCIPAL                          NOTE INTEREST
BALANCE:                                          RATE: [Adjustable Rate]
$[             ]
INITIAL NOTE PRINCIPAL                            NOTE NO. [ ]
BALANCE OF THIS NOTE: $[             ]
PERCENTAGE INTEREST: [     ]%                     CUSIP NO. [             ]

         BNP Paribas Mortgage ABS LLC Trust Series 200_-_ (the "Issuing
Entity"), a Delaware statutory trust, for value received, hereby promises to pay
to Cede & Co. or registered assigns, the principal sum of ($_________________)
in monthly installments on the twenty-fifth day of each month or, if such day is
not a Business Day, the next succeeding Business Day (each a "Payment Date"),
commencing in ______ 200_ and ending on or before the Payment Date occurring in
________ 20__ (the "Final Scheduled Payment Date") and to pay interest on the
Note Principal Balance of this Note (this "Note") outstanding from time to time
as provided below.

         This Note is one of a duly authorized issue of the Issuing Entity's
Mortgage-Backed Notes, Series 200_-_ (the "Notes"), issued under an Indenture
dated as of ____________, 200_ (the "Indenture"), between the Issuing Entity and
[NAME OF TRUSTEE], as indenture trustee (the "Indenture Trustee", which term
includes any successor Indenture Trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights thereunder of the Issuing Entity, the
Indenture Trustee, and the Holders of the Notes and the terms upon which the
Notes are to be authenticated and delivered. All terms used in this Note which
are defined in the Indenture shall have the meanings assigned to them in the
Indenture.

         [NAME OF NOTE INSURER] (the "Note Insurer"), in consideration of the
payment of the premium and subject to the terms of the note insurance policy
(the "Note Insurance Policy") issued thereby, has unconditionally and
irrevocably guaranteed the payment of the Insured Amount with respect to the
Notes, with respect to each Payment Date. Such Note Insurance Policy will not
cover any Prepayment Interest Shortfalls, Relief Act Shortfalls or Basis Risk
Shortfall Carry- Forward Amount.

         Payments of principal and interest on this Note will be made on each
Payment Date to the Noteholder of record as of the related Record Date. The
"Note Principal Balance" of a Note as of any date of determination is equal to
the initial Note Principal Balance thereof, reduced by the aggregate of all
amounts previously paid with respect to such Note on account of principal and
the aggregate amount of cumulative Realized Losses allocated to such Note on all
prior Payment Dates.

         The principal of, and interest on, this Note is due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuing Entity with respect to this Note
shall be equal to this Notes's pro rata share of the aggregate payments on all
Class A Notes as described above, and shall be applied as between interest and
principal as provided in the Indenture. [In addition, any payments received by
the Indenture Trustee in respect of the Seller Guarantee shall be paid to the
Holders of this Note pursuant to Section 3.32 of the Indenture.]

         All principal and interest accrued on the Notes, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.

         The Notes are subject to redemption in whole, but not in part, by the
Majority Certificateholder on any Payment Date on or after the earlier of (i)
the Payment Date on which the aggregate Stated Principal Balance of the Mortgage
Loans as of the end of the prior Due Period is less than or equal to __% of the
aggregate Stated Principal Balance of the Mortgage Loans as of Cut-off Date and
(ii) the Payment Date in ______ 20__.

         The Issuing Entity shall not be liable upon the indebtedness evidenced
by the Notes except to the extent of amounts available from the Trust Estate
which constitutes security for the payment of the Notes. The assets included in
the Trust Estate will be the sole source of payments on the Class A Notes, and
each Holder hereof, by its acceptance of this Note, agrees that (i) such Note
will be limited in right of payment to amounts available from the Trust Estate
as provided in the Indenture and (ii) such Holder shall have no recourse to the
Issuing Entity, the Owner Trustee, the Indenture Trustee, the Seller, the
Depositor, the Master Servicer or any of their respective affiliates, or to the
assets of any of the foregoing entities, except the assets of the Issuing Entity
pledged to secure the Class A Notes pursuant to the Indenture and the rights
conveyed to the Issuing Entity under the Indenture.

         Any payment of principal or interest payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Note, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Note delivered to the Indenture
Trustee at least five Business Days prior to the Record Date, any payment of
principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All scheduled reductions in the principal amount of a
Note (or one or more predecessor Notes) effected by payments of principal made
on any Payment Date shall be binding upon all Holders of this Note and of any
Note issued upon the registration of transfer thereof or in exchange therefor or
in lieu thereof, whether or not such payment is noted on such Note. The final
payment of this Note shall be payable upon presentation and surrender thereof on
or after the Payment Date thereof at the Corporate Trust Office or the office or
agency of the Issuing Entity maintained by it for such purpose pursuant to
Section 3.02 of the Indenture.

         Subject to the foregoing provisions, each Note delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note shall carry the right to unpaid principal and interest that were
carried by such other Note.

         If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Note Principal Balance of the Notes, the amount payable to the Holder of this
Note will be equal to the sum of the unpaid Note Principal Balance of the Notes,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Notes, under certain circumstances specified therein, all amounts collected
as proceeds of the Trust Estate securing the Notes or otherwise shall continue
to be applied to payments of principal of and interest on the Notes as if they
had not been declared due and payable.

         The failure to pay any Unpaid Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.

         The Holder of this Note or Beneficial Owner of any interest herein is
deemed to represent that either (1) it is not acquiring the Note with Plan
Assets or (2) (A) the acquisition, holding and transfer of a Note will not give
rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code as a result of the Issuing Entity, the Seller, the Depositor,
the Underwriter, the Owner Trustee, the Indenture Trustee, the Master Servicer,
any Subservicer, any other servicer, any administrator, any provider of credit
support, any owner of the Certificates, or any of their Affiliates being a
"Party in Interest" (within the meaning of ERISA) or Disqualified Person (within
the meaning of the Code) with respect to such Holder or Beneficial Owner that is
a Plan and (B) the Notes are rated investment grade or better and such person
believes that the Notes are properly treated as indebtedness without substantial
equity features for purposes of the DOL Regulations, and agrees to so treat the
Notes. Alternatively, regardless of the rating of the Notes, such person may
provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
which opinion of counsel will not be at the expense of the Issuing Entity, the
Seller, the Depositor, any Underwriter, the Owner Trustee, the Indenture
Trustee, the Master Servicer or any successor servicer which opines that the
acquisition, holding and transfer of such Note or interest therein is
permissible under applicable law, will not constitute or result in a non-exempt
prohibited transaction under ERISA or Section 4975 of the Code and will not
subject the Issuing Entity, the Seller, the Depositor, any Underwriter, the
Owner Trustee, the Indenture Trustee, the Master Servicer or any successor
servicer to any obligation in addition to those undertaken in the Indenture.

         Pursuant to the Indenture, unless a Note Insurer Default (as defined in
the Indenture) exists (i) the Note Insurer shall be deemed to be the holder of
the Class A Notes for certain purposes specified in the Indenture (other than
with respect to payment on the Class A Notes), and will be entitled to exercise
all rights of the Noteholders thereunder, including the rights of Noteholders
relating to the occurrence of, and the remedies with respect to, an Event of
Default, without the consent of such Noteholders, and (ii) the Trustee may take
actions which would otherwise be at its option or within its discretion,
including actions relating to the occurrence of, and the remedies with respect
to, an Event of Default, only at the direction, or with the consent, of the Note
Insurer.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Note Register of
the Issuing Entity. Upon surrender for registration of transfer of, or
presentation of a written instrument of transfer for, this Note at the office or
agency designated by the Issuing Entity pursuant to the Indenture, accompanied
by proper instruments of assignment in form satisfactory to the Indenture
Trustee, one or more new Notes of any authorized denominations and of a like
aggregate initial Note Principal Balance, will be issued to the designated
transferee or transferees.

         Prior to the due presentment for registration of transfer of this Note,
the Issuing Entity, the Indenture Trustee and any agent of the Issuing Entity or
the Indenture Trustee may treat the Person in whose name this Note is registered
as the owner of such Note (i) on the applicable Record Date for the purpose of
making payments and interest of such Note, and (ii) on any other date for all
other purposes whatsoever, as the owner hereof, whether or not this Note be
overdue, and neither the Issuing Entity, the Indenture Trustee nor any such
agent of the Issuing Entity or the Indenture Trustee shall be affected by notice
to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuing Entity and the rights of the Holders of the Notes under the Indenture at
any time by the Issuing Entity with the consent of the Note Insurer and the
Holders of a majority of all Notes at the time outstanding. The Indenture also
contains provisions permitting (i) the Note Insurer or (ii) if the Note Insurer
defaults, the Holders of Notes representing specified percentages of the
aggregate Note Principal Balance of the Notes on behalf of the Holders of all
the Notes, to waive any past Default under the Indenture and its consequences.
Any such waiver by the Holder, at the time of the giving thereof, of this Note
(or any one or more predecessor Notes) shall bind the Holder of every Note
issued upon the registration of transfer hereof or in exchange hereof or in lieu
hereof, whether or not notation of such consent or waiver is made upon such
Note. The Indenture also permits the Issuing Entity and the Indenture Trustee to
amend or waive certain terms and conditions set forth in the Indenture without
the consent of the Holders of the Notes issued thereunder.

         Initially, the Notes will be registered in the name of Cede & Co. as
nominee of DTC, acting in its capacity as the Depository for the Notes. The
Notes will be delivered by the clearing agency in denominations as provided in
the Indenture and subject to certain limitations therein set forth. The Notes
are exchangeable for a like aggregate initial Note Principal Balance of Notes of
different authorized denominations, as requested by the Holder surrendering
same.

         Unless the Certificate of Authentication hereon has been executed by
the Indenture Trustee by manual signature, this Note shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.

         AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

<PAGE>

         IN WITNESS WHEREOF, the Issuing Entity has caused this instrument to be
duly executed by [NAME OF OWNER TRUSTEE], not in its individual capacity but
solely as Owner Trustee.
Dated: _______ __, 200_

                                         BNP  PARIBAS  MORTGAGE  ABS LLC
                                         TRUST SERIES 200_-_

                                         BY:  [NAME OF  OWNER  TRUSTEE],
                                         not in its individual  capacity
                                         but solely in its  capacity  as
                                         Owner Trustee

                                         By:  _________________________
                                               Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class A Notes referred to in the within-mentioned Indenture.

[NAME OF INDENTURE TRUSTEE], as Indenture Trustee

By:______________________________________
    Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of the Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

               TEN COM     --      as tenants in common
               TEN ENT     --      as tenants by the entireties
               JT TEN      --      as joint tenants with right of survivorship
                                   and not as tenants in common
      UNIF GIFT MIN ACT    --      __________ Custodian _______________________
                                        (Cust)                    (Minor)

                                   under Uniform Gifts to Minor Act
                                   _______________________________
                                                       (State)

         Additional abbreviations may also be used though not in the above list.

<PAGE>

                                   ASSIGNMENT

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

          PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
                                    ASSIGNEE:

                  _____________________________________________

                  _____________________________________________

                  _____________________________________________
 (Please print or typewrite name and address, including zip code, of assignee)

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

Dated: ___________________________  _________________________________________

Signature Guaranteed by ____________________________________

         NOTICE: The signature(s) to this assignment must correspond with the
name as it appears upon the face of the within Note in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.

<PAGE>

                                   EXHIBIT A-2

                            FORM OF CLASS M-[_] NOTES

THIS NOTE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS A NOTES [AND CLASS
M-[_] NOTES] AS DESCRIBED IN THE INDENTURE.

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

THE HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE
DEEMED TO REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF
THE INDENTURE.

THIS NOTE IS A NON-RECOURSE OBLIGATION OF THE ISSUING ENTITY, AND IS LIMITED IN
RIGHT OF PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE
INDENTURE REFERRED TO BELOW. THE ISSUING ENTITY IS NOT OTHERWISE PERSONALLY
LIABLE FOR PAYMENTS ON THIS NOTE.

PRINCIPAL OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

<PAGE>

                BNP PARIBAS MORTGAGE ABS LLC TRUST SERIES 200_-_
                              MORTGAGE-BACKED NOTES
                                   CLASS M-[_]

AGGREGATE NOTE PRINCIPAL                       NOTE INTEREST
BALANCE:                                       RATE: [Adjustable Rate]
$[             ]
INITIAL NOTE PRINCIPAL                         NOTE NO. [ ]
BALANCE OF THIS NOTE: $[             ]
PERCENTAGE INTEREST: [    ]%                   CUSIP NO. [             ]

         BNP Paribas Mortgage ABS LLC Trust Series 200_-_ (the "Issuing
Entity"), a Delaware statutory trust, for value received, hereby promises to pay
to Cede & Co. or registered assigns, the principal sum of
______________________________ ($___________) in monthly installments on the
twenty-fifth day of each month or, if such day is not a Business Day, the next
succeeding Business Day (each a "Payment Date"), commencing in _______ 200_ and
ending on or before the Payment Date occurring in _______ 20__ (the "Final
Scheduled Payment Date") and to pay interest on the Note Principal Balance of
this Note (this "Note") outstanding from time to time as provided below.

         This Note is one of a duly authorized issue of the Issuing Entity's
Mortgage-Backed Notes, Series 200_-_ (the "Notes"), issued under an Indenture
dated as of _______ __, 200_ (the "Indenture"), between the Issuing Entity and
[NAME OF INDENTURE TRUSTEE], as indenture trustee (the "Indenture Trustee",
which term includes any successor Indenture Trustee under the Indenture), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights thereunder of the Issuing Entity, the
Indenture Trustee, and the Holders of the Notes and the terms upon which the
Notes are to be authenticated and delivered. All terms used in this Note which
are defined in the Indenture shall have the meanings assigned to them in the
Indenture.

         Payments of principal and interest on this Note will be made on each
Payment Date to the Noteholder of record as of the related Record Date. The
"Note Principal Balance" of a Note as of any date of determination is equal to
the initial Note Principal Balance thereof, reduced by the aggregate of all
amounts previously paid with respect to such Note on account of principal and
the aggregate amount of cumulative Realized Losses allocated to such Note on all
prior Payment Dates.

         The principal of, and interest on, this Note are due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuing Entity with respect to this Note
shall be equal to this Notes's pro rata share of the aggregate payments on all
Class M-[_] Notes as described above, and shall be applied as between interest
and principal as provided in the Indenture.

         All principal and interest accrued on the Notes, if not previously
paid, will become finally due and payable at the Final Scheduled Payment Date.

         The Notes are subject to redemption in whole, but not in part, by the
Majority Certificateholder on any Payment Date on or after the earlier of (i)
the Payment Date on which the aggregate Stated Principal Balance of the Mortgage
Loans is less than or equal to 25% of aggregate Stated Principal Balance of the
Mortgage Loans as of Cut-off Date and (ii) the Payment Date in ______ 20__.

         The Issuing Entity shall not be liable upon the indebtedness evidenced
by the Notes except to the extent of amounts available from the Trust Estate
which constitutes security for the payment of the Notes. The assets included in
the Trust Estate will be the sole source of payments on the Class M-[_] Notes,
and each Holder hereof, by its acceptance of this Note, agrees that (i) such
Note will be limited in right of payment to amounts available from the Trust
Estate as provided in the Indenture and (ii) such Holder shall have no recourse
to the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Seller, the
Depositor, the Master Servicer or any of their respective affiliates, or to the
assets of any of the foregoing entities, except the assets of the Issuing Entity
pledged to secure the Class M-[_] Notes pursuant to the Indenture and the rights
conveyed to the Issuing Entity under the Indenture.

         Any payment of principal or interest payable on this Note which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Note is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Note Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Note, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Note delivered to the Indenture
Trustee at least five Business Days prior to the Record Date, any payment of
principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All reductions in the principal amount of a Note (or
one or more predecessor Notes) effected by payments of principal made on any
Payment Date shall be binding upon all Holders of this Note and of any Note
issued upon the registration of transfer thereof or in exchange therefor or in
lieu thereof, whether or not such payment is noted on such Note. The final
payment of this Note shall be payable upon presentation and surrender thereof on
or after the Payment Date thereof at the Corporate Trust Office or the office or
agency of the Issuing Entity maintained by it for such purpose pursuant to
Section 3.02 of the Indenture.

         Subject to the foregoing provisions, each Note delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Note shall carry the right to unpaid principal and interest that were
carried by such other Note.

         If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Notes, the Notes may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Note Principal Balance of the Notes, the amount payable to the Holder of this
Note will be equal to the sum of the unpaid Note Principal Balance of the Notes,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Notes, under certain circumstances specified therein, all amounts collected
as proceeds of the Trust Estate securing the Notes or otherwise shall continue
to be applied to payments of principal of and interest on the Notes as if they
had not been declared due and payable.

         The failure to pay any Unpaid Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.

         The Holder of this Note or Beneficial Owner of any interest herein is
deemed to represent that either (1) it is not acquiring the Note with Plan
Assets or (2) (A) the acquisition, holding and transfer of a Note will not give
rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code as a result of the Issuing Entity, the Seller, the Depositor,
the Underwriters, the Owner Trustee, the Indenture Trustee, the Master Servicer,
any Subservicer, any other servicer, any administrator, any provider of credit
support, any owner of the Certificates, or any of their Affiliates being a
"Party in Interest" (within the meaning of ERISA) or Disqualified Person (within
the meaning of the Code) with respect to such Holder or Beneficial Owner that is
a Plan and (B) the Notes are rated investment grade or better and such person
believes that the Notes are properly treated as indebtedness without substantial
equity features for purposes of the DOL Regulations, and agrees to so treat the
Notes. Alternatively, regardless of the rating of the Notes, such person may
provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
which opinion of counsel will not be at the expense of the Issuing Entity, the
Seller, the Depositor any Underwriter, the Owner Trustee, the Indenture Trustee,
the Master Servicer or any successor servicer which opines that the acquisition,
holding and transfer of such Note or interest therein is permissible under
applicable law, will not constitute or result in a non-exempt prohibited
transaction under ERISA or Section 4975 of the Code and will not subject the
Issuing Entity, the Seller, the Depositor, any Underwriter, the Owner Trustee,
the Indenture Trustee, the Master Servicer or any successor servicer to any
obligation in addition to those undertaken in the Indenture.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note may be registered on the Note Register of
the Issuing Entity. Upon surrender for registration of transfer of, or
presentation of a written instrument of transfer for, this Note at the office or
agency designated by the Issuing Entity pursuant to the Indenture, accompanied
by proper instruments of assignment in form satisfactory to the Indenture
Trustee, one or more new Notes of any authorized denominations and of a like
aggregate initial Note Principal Balance, will be issued to the designated
transferee or transferees.

         Prior to the due presentment for registration of transfer of this Note,
the Issuing Entity, the Indenture Trustee and any agent of the Issuing Entity or
the Indenture Trustee may treat the Person in whose name this Note is registered
as the owner of such Note (i) on the applicable Record Date for the purpose of
making payments and interest of such Note, and (ii) on any other date for all
other purposes whatsoever, as the owner hereof, whether or not this Note be
overdue, and neither the Issuing Entity, the Indenture Trustee nor any such
agent of the Issuing Entity or the Indenture Trustee shall be affected by notice
to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuing Entity and the rights of the Holders of the Notes under the Indenture at
any time by the Issuing Entity with the consent of the Note Insurer and the
Holders of a majority of all Notes at the time outstanding. The Indenture also
contains provisions permitting the Holders of Notes representing specified
percentages of the aggregate Note Principal Balance of the Notes on behalf of
the Holders of all the Notes, to waive any past Default under the Indenture and
its consequences. Any such waiver by the Holder, at the time of the giving
thereof, of this Note (or any one or more predecessor Notes) shall bind the
Holder of every Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not notation of such consent or
waiver is made upon such Note. The Indenture also permits the Issuing Entity and
the Indenture Trustee to amend or waive certain terms and conditions set forth
in the Indenture without the consent of the Holders of the Notes issued
thereunder.

         Initially, the Notes will be registered in the name of Cede & Co. as
nominee of DTC, acting in its capacity as the Depository for the Notes. The
Notes will be delivered by the clearing agency in denominations as provided in
the Indenture and subject to certain limitations therein set forth. The Notes
are exchangeable for a like aggregate initial Note Principal Balance of Notes of
different authorized denominations, as requested by the Holder surrendering
same.

         Unless the Certificate of Authentication hereon has been executed by
the Indenture Trustee by manual signature, this Note shall not be entitled to
any benefit under the Indenture, or be valid or obligatory for any purpose.

         AS PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS
NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

<PAGE>

         IN WITNESS WHEREOF, the Issuing Entity has caused this instrument to be
duly executed by [NAME OF OWNER TRUSTEE], not in its individual capacity but
solely as Owner Trustee.

Dated: _______ __, 20__

                                     BNP  PARIBAS  MORTGAGE  ABS LLC
                                     TRUST SERIES 200_-_

                                     BY:  [NAME OF  OWNER  TRUSTEE],
                                          not in its individual  capacity
                                          but solely in its  capacity  as
                                          Owner Trustee

                                     By:      _______________________________
                                              Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class M-[_] Notes referred to in the within-mentioned
Indenture.

[NAME OF INDENTURE TRUSTEE], as Indenture Trustee

By:      _______________________________
         Authorized Signatory

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of the Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

               TEN COM     --      as tenants in common
               TEN ENT     --      as tenants by the entireties
               JT TEN      --      as joint tenants with right of survivorship
                                   and not as tenants in common
      UNIF GIFT MIN ACT    --      __________ Custodian _______________________
                                        (Cust)                    (Minor)

                                   under Uniform Gifts to Minor Act
                                   _______________________________
                                                       (State)

         Additional abbreviations may also be used though not in the above list.

<PAGE>

                                   ASSIGNMENT

  FOR VALUE RECEIVED, THE UNDERSIGNED HEREBY SELLS, ASSIGNS AND TRANSFERS UNTO

     PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

  (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

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

Dated: ___________________________  _________________________________________

Signature Guaranteed by ____________________________________

         NOTICE: The signature(s) to this assignment must correspond with the
name as it appears upon the face of the within Note in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.

<PAGE>

                                   APPENDIX A

                                   DEFINITIONS

ADJUSTABLE RATE MORTGAGE LOAN: A Mortgage Loan with a Mortgage Rate that is
subject to periodic adjustment calculated on the basis of the Index, plus an
applicable Gross Margin. Each Adjustable Rate Mortgage Loan is secured by a
first lien on the related Mortgaged Property.

ADJUSTMENT DATE: As to each Adjustable Rate Mortgage Loan, each date set forth
in the related Mortgage Note on which an adjustment to the interest rate on such
Mortgage Loan becomes effective.

ADMINISTRATIVE FEE: The amount of the fee payable to the Owner Trustee together
with the amount of the premium payable to the Note Insurer, which will accrue at
______% per annum based on the Note Principal Balance of the Notes.

ADVANCE: As to any Mortgage Loan, any advance made by the Master Servicer,
pursuant to Section 4.04 of the Servicing Agreement.

AFFILIATE: With respect to any Person, any other Person controlling, controlled
by or under common control with such Person. For purposes of this definition,
"control" means the power to direct the management and policies of a Person,
directly or indirectly, whether through ownership of voting securities, by
contract or otherwise and "controlling" and "controlled" shall have meanings
correlative to the foregoing.

APPRAISED VALUE: The appraised value of a Mortgaged Property based upon the
lesser of (i) the appraisal made at the time of the origination of the related
Mortgage Loan, or (ii) the sales price of such Mortgaged Property at such time
of origination. With respect to a Mortgage Loan the proceeds of which were used
to refinance an existing mortgage loan, the appraised value of the Mortgaged
Property based upon the appraisal (as reviewed and approved by the Seller)
obtained at the time of refinancing.

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

AUTHORIZED NEWSPAPER: A newspaper of general circulation in the Borough of
Manhattan, The City of New York, printed in the English language and customarily
published on each Business Day, whether or not published on Saturdays, Sundays
or holidays.

AUTHORIZED OFFICER: With respect to the Issuing Entity, any officer of the Owner
Trustee who is authorized to act for the Owner Trustee in matters relating to
the Issuing Entity and who is identified on the list of Authorized Officers
delivered by the Owner Trustee to the Indenture Trustee on the Closing Date (as
such list may be modified or supplemented from time to time thereafter).

AVAILABLE FUNDS: As to any Payment Date, an amount equal to the amount on
deposit in the Payment Account on such Payment Date and available for
distribution to the Noteholders (minus, if the Notes have been declared due and
payable following an Event of Default on such Payment Date, any amounts owed to
the Indenture Trustee by the Issuing Entity pursuant to Section 6.07 of the
Indenture).

AVAILABLE FUNDS CAP CARRY-FORWARD AMOUNT: With respect to the Notes and any
Payment Date, an amount equal to the sum of (x) the amount, if any, by which (a)
the lesser of (1) the amount payable if clause (i) of the definition of Note
Interest Rate is used to calculate interest and (2) the amount payable if the
Maximum Note Interest Rate is used to calculate interest exceeds (b) the amount
payable if clause (ii) of the definition of Note Interest Rate is used to
calculate interest and (y) the interest accrued during the prior Interest Period
on the amount of any Available Funds Cap Carry-Forward Amount immediately prior
to such Payment Date, calculated on the basis of a 360-day year and the actual
number of days elapsed and using the Note Interest Rate applicable to such
Payment Date minus (z) the aggregate of all amounts distributed to the
Noteholders on all prior Payment Dates pursuant to Section 3.05(iv) of the
Indenture.

AVAILABLE FUNDS INTEREST RATE: As to any Payment Date, a per annum rate equal to
the lesser of (x) the fraction, expressed as a percentage, the numerator of
which is (i) an amount equal to (A) 1/12 of the aggregate Principal Balance of
the then outstanding Mortgage Loans times the weighted average of the Expense
Adjusted Mortgage Rates on the then outstanding Mortgage Loans minus (B) the
Administrative Fee for such Payment Date, and the denominator of which is (ii)
an amount equal to (A) the then outstanding aggregate Note Principal Balance of
the Notes multiplied by (B) the actual number of days elapsed in the related
Interest Period divided by 360 and (y) the Maximum Note Interest Rate.

BANKRUPTCY CODE:  The Bankruptcy Code of 1978, as amended.

BASIC DOCUMENTS: The Trust Agreement, the Certificate of Trust, the Indenture,
the Mortgage Loan Purchase Agreement, the Insurance Agreement, the Servicing
Agreement, and the other documents and certificates delivered in connection with
any of the above.

BENEFICIAL OWNER: With respect to any Note, the Person who is the beneficial
owner of such Note as reflected on the books of the Depository or on the books
of a Person maintaining an account with such Depository (directly as a
Depository Participant or indirectly through a Depository Participant, in
accordance with the rules of such Depository).

BOOK-ENTRY NOTES: Beneficial interests in the Notes, ownership and transfers of
which shall be made through book entries by the Depository as described in
Section 4.06 of the Indenture.

BUSINESS DAY: Any day other than (i) a Saturday or a Sunday or (ii) a day on
which banking institutions in the City of New York or Delaware or in the city in
which the corporate trust offices of the Indenture Trustee or the Note Insurer
are located, are required or authorized by law to be closed.

CASH LIQUIDATION: As to any defaulted Mortgage Loan other than a Mortgage Loan
as to which an REO Acquisition occurred, a determination by the Master Servicer
that it has received all Insurance Proceeds, Liquidation Proceeds and other
payments or cash recoveries which the Master Servicer reasonably and in good
faith expects to be finally recoverable with respect to such Mortgage Loan.

CERTIFICATE DISTRIBUTION ACCOUNT: The account or accounts created and maintained
pursuant to Section 3.10(d) of the Trust Agreement. The Certificate Distribution
Account shall be an Eligible Account.

CERTIFICATE  PAYING  AGENT:  The meaning  specified in Section 3.10 of the Trust
Agreement.

CERTIFICATE  PERCENTAGE  INTEREST:   With  respect  to  each  Certificate,   the
Certificate Percentage Interest on the face thereof.

CERTIFICATE  REGISTER:  The register maintained by the Certificate  Registrar in
which  the  Certificate   Registrar  shall  provide  for  the   registration  of
Certificates and of transfers and exchanges of Certificates.

CERTIFICATE  REGISTRAR:  Initially,  the Indenture  Trustee,  in its capacity as
Certificate  Registrar,  or any  successor  to the  Indenture  Trustee  in  such
capacity.

CERTIFICATE OF TRUST:  The  Certificate of Trust filed for the Trust pursuant to
Section 3810(a) of the Statutory Trust Statute.

CERTIFICATES: The BNP Paribas Mortgage ABS LLC, Mortgage-Backed Certificates,
Series 200_-_, evidencing the beneficial ownership interest in the Issuing
Entity and executed by the Owner Trustee in substantially the form set forth in
Exhibit A to the Trust Agreement.

CERTIFICATEHOLDER: The Person in whose name a Certificate is registered in the
Certificate Register. Owners of Certificates that have been pledged in good
faith may be regarded as Holders if the pledgee establishes to the satisfaction
of the Indenture Trustee or the Owner Trustee, as the case may be, the pledgee's
right so to act with respect to such Certificates and that the pledgee is not
the Issuing Entity, any other obligor upon the Certificates or any Affiliate of
any of the foregoing Persons.

CLOSING DATE:  ______ __, 200_.

CODE:  The  Internal  Revenue  Code of  1986,  as  amended,  and the  rules  and
regulations promulgated thereunder.

COLLATERAL: The meaning specified in the Granting Clause of the Indenture.

COLLECTION  ACCOUNT:  The account or accounts created and maintained pursuant to
Section 3.06(d) of the Servicing  Agreement.  The Collection Account shall be an
Eligible Account.

COMBINED LOAN-TO-VALUE RATIO: With respect to any Mortgage Loan and any date,
the percentage equivalent of a fraction, the numerator of which is the Cut-Off
Date Principal Balance of such Mortgage Loan and the denominator of which is the
outstanding principal balance as of the date of the origination of such Mortgage
Loan of any mortgage loan or mortgage loans that are secured by liens on the
Mortgaged Property that are senior or subordinate to the Mortgage and the
denominator of which is the Appraised Value of the related Mortgaged Property.

COMPENSATING INTEREST: With respect to any Determination Date, an amount equal
to the lesser of (i) the aggregate amount of Prepayment Interest Shortfall for
the related Prepayment Period and (ii) the Servicing Fee for such Determination
Date.

CONVERTED MORTGAGE LOAN: Any Convertible Mortgage Loan with respect to which the
interest rate borne by such Mortgage Loan has been converted from an adjustable
interest rate to a fixed interest rate.

CONVERTIBLE MORTGAGE LOAN: Any Adjustable Rate Mortgage Loan which by its terms
grants to the related Mortgagor the option to convert the interest rate borne by
such Mortgage Loan from an adjustable interest rate to a fixed interest rate.

CONVERTING MORTGAGE LOAN: Any Convertible Mortgage Loan with respect to which
the related Mortgagor has given notice of his intent to convert from an
adjustable interest rate to a fixed interest rate and prior to the conversion of
such Mortgage Loan.

CORPORATE TRUST OFFICE: With respect to the Indenture Trustee, Certificate
Registrar, Certificate Paying Agent and Paying Agent, the principal corporate
trust office of the Indenture Trustee and Note Registrar at which at any
particular time its corporate trust business shall be administered, which office
at the date of the execution of this instrument is located at ____________,
__________, ______, __________ _____, Attention: ________ ___ ______, except
that for purposes of Section 4.02 of the Indenture and Section 3.09 of the Trust
Agreement, such term shall include the Indenture Trustee's office or agency at
_______________, ________, ________ _____, Attention: ___________ _________.
With respect to the Owner Trustee, the principal corporate trust office of the
Owner Trustee at which at any particular time its corporate trust business shall
be administered, which office at the date of the execution of this Trust
Agreement is located at ________________________, ______ ____________,
_________________, __________, ________ _____, Attention:
______________________.

CUT-OFF DATE: With respect to the Mortgage Loans, ______ 1, 200_.

CUT-OFF DATE PRINCIPAL BALANCE: With respect to any Mortgage Loan, the unpaid
principal balance thereof as of the opening of business on the last day of the
related Due Period immediately prior to the Cut-Off Date.

DEBT SERVICE REDUCTION: With respect to any Mortgage Loan, a reduction in the
scheduled Monthly Payment for such Mortgage Loan by a court of competent
jurisdiction in a proceeding under the Bankruptcy Code, except such a reduction
constituting a Deficient Valuation or any reduction that results in a permanent
forgiveness of principal.

DEFAULT: Any occurrence which is or with notice or the lapse of time or both
would become an Event of Default.

DEFICIENCY AMOUNT: The meaning provided in the Note Insurance Policy.

DEFICIENT VALUATION: With respect to any Mortgage Loan, a valuation by a court
of competent jurisdiction of the Mortgaged Property in an amount less than the
then outstanding indebtedness under the Mortgage Loan, or any reduction in the
amount of principal to be paid in connection with any scheduled Monthly Payment
that constitutes a permanent forgiveness of principal, which valuation or
reduction results from a proceeding under the Bankruptcy Code.

DEFINITIVE NOTES: The meaning specified in Section 4.06 of the Indenture.

DELETED  MORTGAGE  LOAN:  A Mortgage  Loan  replaced or to be  replaced  with an
Eligible Substitute Mortgage Loan.

DEPOSITOR:  BNP Paribas Mortgage ABS LLC, a Delaware limited liability  company,
or its successor in interest.

DEPOSITORY OR DEPOSITORY AGENCY: The Depository Trust Company or a successor
appointed by the Indenture Trustee with the approval of the Depositor. Any
successor to the Depository shall be an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act and the regulations of the
Securities and Exchange Commission thereunder.

DEPOSITORY PARTICIPANT: A Person for whom, from time to time, the Depository
effects book-entry transfers and pledges of securities deposited with the
Depository.

DETERMINATION DATE: With respect to any Payment Date, the 15th of the related
month, or if the 15th day of such month is not a Business Day, the immediately
preceding Business Day.

DUE DATE: The first day of the month of the related Payment Date.

DUE PERIOD: With respect to any Mortgage Loan and Due Date, the period
commencing on the second day of the month preceding the month of such Payment
Date (or, with respect to the first Due Period, the day following the Cut-Off
Date) and ending on the related Due Date.

ELIGIBLE ACCOUNT: An account that is any of the following: (i) maintained with a
depository institution the short term deposits of which have been rated by each
Rating Agency in its highest rating available, or (ii) an account or accounts in
a depository institution in which such accounts are fully insured to the limits
established by the FDIC, provided that any deposits not so insured shall, to the
extent acceptable to the Note Insurer and each Rating Agency, as evidenced in
writing, be maintained such that (as evidenced by an Opinion of Counsel
delivered to the Indenture Trustee, the Note Insurer and each Rating Agency) the
Indenture Trustee have a claim with respect to the funds in such account or a
perfected first security interest against any collateral (which shall be limited
to Eligible Investments) securing such funds that is superior to claims of any
other depositors or creditors of the depository institution with which such
account is maintained, or (iii) in the case of the Collection Account, either
(A) a trust account or accounts maintained at the Corporate Trust Department of
the Indenture Trustee or (B) an account or accounts maintained at the Corporate
Trust Department of the Indenture Trustee, as long as its short term debt
obligations are rated P-1 by Moody's and A-1 by Standard & Poor's or better and
its long term debt obligations are rated A2 by Moody's and A by Standard &
Poor's or better, or (iv) in the case of the Collection Account and the Payment
Account, a trust account or accounts maintained in the corporate trust division
of the Indenture Trustee, or (v) an account or accounts of a depository
institution acceptable to each Rating Agency as evidenced in writing by each
Rating Agency that use of any such account as the Collection Account or the
Payment Account will not reduce the rating assigned to any of the Securities by
such Rating Agency below investment grade without taking into account the Note
Insurance Policy and acceptable to the Note Insurer as evidenced in writing.

ELIGIBLE INVESTMENTS:  One or more of the following:

                  (i) direct  obligations of, and obligations  fully  guaranteed
         by,  the  United   States  of  America,   the  Federal  Home   Mortgage
         Corporation,  the Federal National  Mortgage  Association,  the Federal
         Home Loan Banks or any agency or  instrumentality  of the United States
         of America  the  obligations  of which are backed by the full faith and
         credit of the United States of America;

                  (ii) (A) demand and time deposits in,  certificates of deposit
         of,  banker's  acceptances  issued  by or  federal  funds  sold  by any
         depository  institution  or  trust  company  (including  the  Indenture
         Trustee or its agent acting in their respective commercial  capacities)
         incorporated  under the laws of the  United  States of  America  or any
         State thereof and subject to  supervision  and  examination  by federal
         and/or state authorities,  so long as at the time of such investment or
         contractual  commitment providing for such investment,  such depository
         institution  or trust company has a short term unsecured debt rating in
         the highest  available  rating  category of each of the Rating Agencies
         and provided that each such  investment has an original  maturity of no
         more than 365 days, and (B) any other demand or time deposit or deposit
         which is fully insured by the Federal Deposit Insurance Corporation;

                  (iii) repurchase obligations with a term not to exceed 30 days
         with respect to any security  described in clause (i) above and entered
         into  with a  depository  institution  or trust  company  (acting  as a
         principal)  rated "A" or  higher  by S&P and A2 or  higher by  Moody's;
         provided,   however,  that  collateral  transferred  pursuant  to  such
         repurchase obligation must (A) be valued weekly at current market price
         plus accrued  interest,  (B) pursuant to such valuation,  equal, at all
         times,  105%  of the  cash  transferred  by the  Indenture  Trustee  in
         exchange for such  collateral  and (C) be  delivered  to the  Indenture
         Trustee or, if the Indenture  Trustee is supplying the  collateral,  an
         agent for the  Indenture  Trustee,  in such a manner  as to  accomplish
         perfection  of a security  interest in the  collateral by possession of
         certificated securities.

                  (iv) securities  bearing interest or sold at a discount issued
         by any corporation  incorporated under the laws of the United States of
         America  or any State  thereof  which has a long  term  unsecured  debt
         rating in the highest  available  rating category of each of the Rating
         Agencies at the time of such investment;

                  (v) commercial paper having an original  maturity of less than
         365 days and issued by an  institution  having a short  term  unsecured
         debt rating in the  highest  available  rating  category of each of the
         Rating Agencies at the time of such investment;

                  (vi) a guaranteed  investment contract approved by each of the
         Rating Agencies and the Note Insurer and issued by an insurance company
         or other  corporation  having a long term  unsecured debt rating in the
         highest available rating category of each of the Rating Agencies at the
         time of such investment;

                  (vii)  money  market  funds  having  ratings  in  the  highest
         available  long-term  rating category of each of the Rating Agencies at
         the time of such investment;  any such money market funds which provide
         for  demand  withdrawals  being  conclusively  deemed  to  satisfy  any
         maturity   requirement  for  Eligible  Investments  set  forth  in  the
         Indenture; and

                  (viii)  any  investment  approved  in  writing  by each of the
         Rating Agencies and the Note Insurer.

The Indenture Trustee may purchase from or sell to itself or an affiliate, as
principal or agent, the Eligible Investments listed above.

Provided, however, that each such instrument shall be acquired in an arm's
length transaction and no such instrument shall be an Eligible Investment if it
represents, either (1) the right to receive only interest payments with respect
to the underlying debt instrument or (2) the right to receive both principal and
interest payments derived from obligations underlying such instrument and the
principal and interest payments with respect to such instrument provide a yield
to maturity greater than 120% of the yield to maturity at par of such underlying
obligations; provided further, however, that each such instrument acquired shall
not be acquired at a price in excess of par.

ELIGIBLE SUBSTITUTE MORTGAGE LOAN: A Mortgage Loan substituted by the Seller for
a Deleted Mortgage Loan which must, on the date of such substitution, as
confirmed in an Officer's Certificate delivered to the Indenture Trustee, (i)
have an outstanding principal balance, after deduction of the principal portion
of the monthly payment due in the month of substitution (or in the case of a
substitution of more than one Mortgage Loan for a Deleted Mortgage Loan, an
aggregate outstanding principal balance, after such deduction), not in excess of
the outstanding principal balance of the Deleted Mortgage Loan (the amount of
any shortfall to be deposited by the Seller in the Collection Account in the
month of substitution); (ii) comply with each representation and warranty set
forth in clauses (ii) through (lxxvii) of Section 3.1(b) of the Mortgage Loan
Purchase Agreement other than clauses (ii), (iii), (v)-(xi), (xiii)-(xiv), (l),
(lxvi), (lxviii), (lxxi), (lxxiii); (iii) have a Mortgage Rate and Gross Margin
no lower than and not more than 1% per annum higher than the Mortgage Rate and
Gross Margin, respectively, of the Deleted Mortgage Loan as of the date of
substitution; (iv) have a Combined Loan-to-Value Ratio at the time of
substitution no higher than that of the Deleted Mortgage Loan at the time of
substitution; (v) have a remaining term to stated maturity not greater than (and
not more than one year less than) that of the Deleted Mortgage Loan and (vi) not
be 30 days or more delinquent.

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

EVENT OF DEFAULT: With respect to the Indenture, any one of the following events
(whatever the reason for such Event of Default and whether it shall be voluntary
or involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

                  (ix) a default  in (a) the  payment  of the  Interest  Payment
         Amount or the Principal  Payment  Amount with respect to a Payment Date
         on such Payment Date or (b) the  Subordination  Increase  Amount or the
         Available  Funds Cap  Carry-Forward  Amount,  but only, with respect to
         clause (b), to the extent  funds are  available to make such payment as
         provided in the Indenture; or

                  (x) the failure by the Issuing  Entity on the Final  Scheduled
         Payment Date to reduce the Note Principal Balance to zero; or

                  (xi) there occurs a default in the  observance or  performance
         of  any  covenant  or  agreement  of the  Issuing  Entity  made  in the
         Indenture, or any representation or warranty of the Issuing Entity made
         in the  Indenture  or in any  certificate  or other  writing  delivered
         pursuant  hereto  or  in  connection  herewith  proving  to  have  been
         incorrect  in any  material  respect as of the time when the same shall
         have been made, and such default shall continue or not be cured, or the
         circumstance  or condition in respect of which such  representation  or
         warranty  was  incorrect  shall not have been  eliminated  or otherwise
         cured,  for a period of 30 days after there  shall have been given,  by
         registered or certified  mail,  to the Issuing  Entity by the Indenture
         Trustee or to the Issuing Entity and the Indenture  Trustee by the Note
         Insurer,  or if a Note Insurer  Default  exists the Holders of at least
         25% of the Outstanding Amount of the Notes, a written notice specifying
         such default or incorrect  representation  or warranty and requiring it
         to be  remedied  and  stating  that such  notice is a notice of default
         hereunder; or

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

                  (xiii) there occurs the  commencement by the Issuing Entity of
         a  voluntary  case under any  applicable  federal or state  bankruptcy,
         insolvency  or other  similar law now or  hereafter  in effect,  or the
         consent by the Issuing Entity to the entry of an order for relief in an
         involuntary  case under any such law,  or the  consent  by the  Issuing
         Entity  to  the  appointment  or  taking   possession  by  a  receiver,
         liquidator,  assignee,  custodian,  trustee,  sequestrator  or  similar
         official  of the  Issuing  Entity  or for any  substantial  part of the
         assets of the Trust Estate,  or the making by the Issuing Entity of any
         general assignment for the benefit of creditors,  or the failure by the
         Issuing Entity  generally to pay its debts as such debts become due, or
         the taking of any action by the Issuing Entity in furtherance of any of
         the foregoing.

EVENT OF SERVICER TERMINATION: With respect to the Servicing Agreement, a
Servicing Default as defined in Section 6.01 of the Servicing Agreement.

EXCESS SUBORDINATION AMOUNT: With respect to any Payment Date, the excess, if
any, of (a) the Subordination Amount that would apply on such Payment Date after
taking into account all distributions to be made on such Payment Date (exclusive
of any reductions thereto attributable to Subordination Reduction Amounts on
such Payment Date) over (b) the Required Subordination Amount for such Payment
Date.

EXCHANGE ACT: The Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

EXPENSE ADJUSTED MORTGAGE RATE: For any Mortgage Loan, the rate equal to the
then applicable Mortgage Rate thereon minus the sum of (i) the Minimum Spread
and (ii) the Servicing Fee Rate and (iii) the Indenture Trustee Fee Rate.

EXPENSES: The meaning specified in Section 7.02 of the Trust Agreement.

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

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

FINAL SCHEDULED PAYMENT DATE: The Payment Date occurring in _________ 20__.

FIXED RATE MORTGAGE LOAN: Any Mortgage Loan with a fixed rate of interest.

FNMA: The Federal National Mortgage Association, or any successor thereto.

FORECLOSURE PROFIT: With respect to a Liquidated Mortgage Loan, the amount, if
any, by which (i) the aggregate of its Net Liquidation Proceeds exceeds (ii) the
related Principal Balance (plus accrued and unpaid interest thereon at the
applicable Mortgage Rate from the date interest was last paid through the date
of receipt of the final Liquidation Proceeds) of such Liquidated Mortgage Loan
immediately prior to the final recovery of its Liquidation Proceeds.

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

GROSS MARGIN: With respect to any Adjustable Rate Mortgage Loan, the percentage
set forth as the "Gross Margin" for such Mortgage Loan on the Mortgage Loan
Schedule, as adjusted from time to time in accordance with the terms of the
Servicing Agreement.

INDEMNIFIED PARTY: The meaning specified in Section 7.02 of the Trust Agreement.

INDENTURE:  The  indenture  dated as of ______ __,  200_,  between  the  Issuing
Entity, as debtor, and the Indenture Trustee, as Indenture Trustee.

INDENTURE TRUSTEE: _________________________________________, a national banking
association,  and its successors and assigns or any successor  indenture trustee
appointed pursuant to the terms of the Indenture.

INDENTURE TRUSTEE FEE: With respect to each Mortgage Loan and any Payment Date
the product of (i) the Indenture Trustee Fee Rate divided by 12 and (ii) the
Principal Balance of such Mortgage Loans as of such date.

INDENTURE TRUSTEE FEE RATE:  _____% per annum.

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

INDEPENDENT CERTIFICATE: A certificate or opinion to be delivered to the
Indenture Trustee under the circumstances described in, and otherwise complying
with, the applicable requirements of Section 10.01 of the Indenture, made by an
Independent appraiser or other expert appointed by an Issuing Entity Order and
approved by the Indenture Trustee in the exercise of reasonable care, and such
opinion or certificate shall state that the signer has read the definition of
"Independent" in this Indenture and that the signer is Independent within the
meaning thereof.

INDEX: With respect to any Adjustable Rate Mortgage Loan, index for the
adjustment of the Mortgage Rate set forth as such on the related Mortgage Note.

INITIAL NOTE PRINCIPAL BALANCE: With respect to the Notes, $______________.

INITIAL SUBSERVICER:  _____________, a __________ corporation.

INSOLVENCY EVENT: With respect to a specified Person, (a) the filing of a decree
or order for relief by a court having jurisdiction in the premises in respect of
such Person or any substantial part of its property in an involuntary case under
any applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for any substantial part of
its property, or ordering the winding-up or liquidation of such Person's
affairs, and such decree or order shall remain unstayed and in effect for a
period of 60 consecutive days; or (b) the commencement by such Person of a
voluntary case under any applicable bankruptcy, insolvency or other similar law
now or hereafter in effect, or the consent by such Person to the entry of an
order for relief in an involuntary case under any such law, or the consent by
such Person to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for
such Person or for any substantial part of its property, or the making by such
Person of any general assignment for the benefit of creditors, or the failure by
such Person generally to pay its debts as such debts become due or the admission
by such Person in writing (as to which the Indenture Trustee shall have notice)
of its inability to pay its debts generally, or the adoption by the Board of
Directors or managing member of such Person of a resolution which authorizes
action by such Person in furtherance of any of the foregoing.

INSURANCE AGREEMENT: The insurance and reimbursement agreement dated as of _____
__, 200_, among the Master Servicer, the Seller, the Depositor, the Issuing
Entity, Indenture Trustee and the Note Insurer, including any amendments and
supplements thereto.

INSURANCE PROCEEDS: Proceeds paid by any insurer (other than the Note Insurer)
pursuant to any insurance policy covering a Mortgage Loan which are required to
be remitted to the Master Servicer, or amounts required to be paid by the Master
Servicer pursuant to the Servicing Agreement, net of any component thereof (i)
covering any expenses incurred by or on behalf of the Master Servicer in
connection with obtaining such proceeds, (ii) that is applied to the restoration
or repair of the related Mortgaged Property, (iii) released to the Mortgagor in
accordance with the Master Servicer's normal servicing procedures or (iv)
required to be paid to any holder of a mortgage senior to such Mortgage Loan.

INSURED PAYMENT: Shall have the meaning set forth in the Note Insurance Policy.

INTEREST  DETERMINATION  DATE: With respect to any Interest  Period,  the second
London Business Day preceding the commencement of such Interest Period.

INTEREST PAYMENT AMOUNT: With respect to any Payment Date, an amount equal to
interest accrued during the related Interest Period on the Note Principal
Balance thereof at the then-applicable Note Interest Rate, minus any Prepayment
Interest Shortfalls and Relief Act Shortfalls to the extent not covered by the
Master Servicer by Compensating Interest for such Payment Date.

INTEREST PERIOD: With respect to any Payment Date other than the first Payment
Date, the period beginning on the preceding Payment Date and ending on the day
preceding such Payment Date, and in the case of the first Payment Date, the
period beginning on the Closing Date and ending on the day preceding the first
Payment Date.

INTEREST RATE ADJUSTMENT DATE: With respect to each Mortgage Loan, the date or
dates on which the Mortgage Rate is adjusted in accordance with the related
Mortgage Note.

ISSUING ENTITY: The BNP Paribas Mortgage ABS LLC Trust Series 200_-_, a Delaware
statutory trust, or its successor in interest.

ISSUER REQUEST: A written order or request signed in the name of the Issuing
Entity by any one of its Authorized Officers and approved in writing by the Note
Insurer, so long as no Note Insurer Default exists and delivered to the
Indenture Trustee.

LIBOR BUSINESS DAY: Any day other than (i) a Saturday or a Sunday or (ii) a day
on which banking institutions in the State of New York or Delaware, or in the
city of London, England are required or authorized by law to be closed.

LIEN: Any mortgage, deed of trust, pledge, conveyance, hypothecation,
assignment, participation, deposit arrangement, encumbrance, lien (statutory or
other), preference, priority right or interest or other security agreement or
preferential arrangement of any kind or nature whatsoever, including, without
limitation, any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the
foregoing and the filing of any financing statement under the UCC (other than
any such financing statement filed for informational purposes only) or
comparable law of any jurisdiction to evidence any of the foregoing; provided,
however, that any assignment pursuant to Section 6.02 of the Servicing Agreement
shall not be deemed to constitute a Lien.

LIFETIME RATE CAP: With respect to each Mortgage Loan with respect to which the
related Mortgage Note provides for a lifetime rate cap, the maximum Mortgage
Rate permitted over the life of such Mortgage Loan under the terms of such
Mortgage Note, as set forth on the Mortgage Loan Schedule and initially as set
forth on Exhibit A to the Servicing Agreement.

LIQUIDATED MORTGAGE LOAN: With respect to any Payment Date, any Mortgage Loan in
respect of which the Master Servicer has determined, in accordance with the
servicing procedures specified in the Servicing Agreement, as of the end of the
related Prepayment Period that substantially all Liquidation Proceeds which it
reasonably expects to recover with respect to the disposition of the related REO
Property have been recovered.

LIQUIDATION EXPENSES: Out-of-pocket expenses (exclusive of overhead) which are
incurred by or on behalf of the Master Servicer in connection with the
liquidation of any Mortgage Loan and not recovered under any insurance policy,
such expenses including, without limitation, legal fees and expenses, any
unreimbursed amount expended (including, without limitation, amounts advanced to
correct defaults on any mortgage loan which is senior to such Mortgage Loan and
amounts advanced to keep current or pay off a mortgage loan that is senior to
such Mortgage Loan) respecting the related Mortgage Loan and any related and
unreimbursed expenditures for real estate property taxes or for property
restoration, preservation or insurance against casualty loss or damage.

LIQUIDATION PROCEEDS: Proceeds (including Insurance Proceeds but not including
amounts drawn under the Note Insurance Policy) received in connection with the
liquidation of any Mortgage Loan or related REO Property, whether through
trustee's sale, foreclosure sale or otherwise.

LOAN YEAR: With respect to any Mortgage Loan, the one year period commencing on
the day succeeding the origination of such Mortgage Loan and ending on the
anniversary date of such Mortgage Loan, and each annual period thereafter.

LONDON BUSINESS DAY: Any day on which banks in the City of London, England are
open and conducting transactions in United States dollars.

LOST NOTE AFFIDAVIT: With respect to any Mortgage Loan as to which the original
Mortgage Note has been permanently lost or destroyed and has not been replaced,
an affidavit from the Seller certifying that the original Mortgage Note has been
lost, misplaced or destroyed (together with a copy of the related Mortgage
Note).

MASTER  SERVICER:  _______________________,  a __________  corporation,  and its
successors and assigns.

MASTER SERVICING FEE: With respect to each Mortgage Loan and any Payment Date
the product of (i) the Master Servicing Fee Rate divided by 12 and (ii) the
Principal Balance of such Mortgage Loans as of such date.

MASTER SERVICING FEE RATE: With respect to each Mortgage Loan, ____% per annum.

MAXIMUM NOTE INTEREST RATE: With respect to any Payment Date, the per annum rate
equal to the fraction, expressed as a percentage, the numerator of which is (i)
an amount equal to (A) 1/12 of the aggregate Principal Balance of the then
outstanding Mortgage Loans times the weighted average of the Expense Adjusted
Maximum Mortgage Rates on the then outstanding Mortgage Loans minus (B) the
Administrative Fee for such Payment Date, and the denominator of which is (ii)
an amount equal to (A) the aggregate Note Principal Balance of the Notes
multiplied by (B) the actual number of days elapsed in the related Interest
Period divided by 360.

MAXIMUM  MORTGAGE RATE:  With respect to each Adjustable Rate Mortgage Loan, the
maximum Mortgage Rate.

MINIMUM  MORTGAGE RATE:  With respect to each Adjustable Rate Mortgage Loan, the
minimum Mortgage Rate.

MINIMUM SPREAD:  ____% per annum.

MONTHLY PAYMENT: With respect to any Mortgage Loan (including any REO Property)
and any Due Date, the payment of principal and interest due thereon in
accordance with the amortization schedule at the time applicable thereto (after
adjustment, if any, for partial Prepayments and for Deficient Valuations
occurring prior to such Due Date but before any adjustment to such amortization
schedule by reason of any bankruptcy, other than a Deficient Valuation, or
similar proceeding or any moratorium or similar waiver or grace period).

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

MORTGAGE: The mortgage, deed of trust or other instrument creating a first or
second lien on an estate in fee simple interest in real property securing a
Mortgage Loan.

MORTGAGE FILE: The file containing the Related Documents pertaining to a
particular Mortgage Loan and any additional documents required to be added to
the Mortgage File pursuant to the Mortgage Loan Purchase Agreement or the
Servicing Agreement.

MORTGAGE LOAN PURCHASE AGREEMENT: The Mortgage Loan Purchase Agreement, dated as
of the Cut-Off Date, between the Seller, as seller, and the Purchaser, as
purchaser, with respect to the Mortgage Loans, dated as of ______ __, 200_.

MORTGAGE LOAN SCHEDULE: With respect to any date, the schedule of Mortgage Loans
held by the Issuing Entity on such date. The initial schedule of Mortgage Loans
as of the Cut-Off Date is the schedule set forth in Exhibit A of the Servicing
Agreement, which schedule sets forth as to each Mortgage Loan

                  (xiv) the loan number and name of the Mortgagor;

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

                  (xvi) the Mortgage Rate;

                  (xvii) the Maximum Rate;

                  (xviii) the maturity date;

                  (xix) the original principal balance;

                  (xx) the first payment date;

                  (xxi) the type of Mortgaged Property;

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

                  (xxiii) the Cut-off Date Principal Balance;

                  (xxiv) the occupancy status;

                  (xxv) the purpose of the Mortgage Loan;

                  (xxvi) the Appraised Value of the Mortgaged Property;

                  (xxvii) the original term to maturity;

                  (xxviii) the paid-through date of the Mortgage Loan;

                  (xxix) the Loan-to-Value Ratio; and

                  (xxx)  whether  or not  the  Mortgage  Loan  was  underwritten
         pursuant to a limited documentation program.

The Mortgage Loan Schedule shall also set forth the total of the amounts
described under (ix) above for all of the Mortgage Loans.

MORTGAGE LOANS: At any time, collectively, all Mortgage Loans that have been
sold to the Depositor under the Mortgage Loan Purchase Agreement or substituted
for pursuant to Section 2.1 and 3.1 of the Mortgage Loan Purchase Agreement and
transferred and conveyed to the Issuing Entity, in each case together with the
Related Documents, and that remain subject to the terms thereof.

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

MORTGAGE  RATE:  With  respect to any  Mortgage  Loan,  the annual rate at which
interest accrues on such Mortgage Loan.

MORTGAGED  PROPERTY:  The  underlying  property,  including  real  property  and
improvements thereon, securing a Mortgage Loan.

MORTGAGOR: The obligor or obligors under a Mortgage Note.

NET  LIQUIDATION  PROCEEDS:  With  respect  to  any  Liquidated  Mortgage  Loan,
Liquidation Proceeds net of Liquidation Expenses.

NET MONTHLY EXCESS CASHFLOW: For any Payment Date, the amount of Available Funds
and any Insured Payment remaining after distributions pursuant to clauses (i)
through (iii) of Section 3.05 of the Indenture (minus any Insured Payment and
any Subordination Reduction Amount).

NET MORTGAGE RATE: With respect to any Mortgage Loan and any day, the related
Mortgage Rate less the sum of the related Servicing Fee Rate, the Administrative
Fee Rate and the Indenture Trustee Fee Rate.

NONRECOVERABLE ADVANCE: Any advance (i) which was previously made or is proposed
to be made by the Master Servicer; and (ii) which, in the good faith judgment of
the Master Servicer, will not or, in the case of a proposed advance, would not,
be ultimately recoverable by the Master Servicer from Liquidation Proceeds,
Insurance Proceeds or future payments on any Mortgage Loan.

NOTE INSURANCE POLICY: The bond guaranty insurance policy number __________,
issued by the Note Insurer to the Indenture Trustee for the benefit of the
Noteholders.

NOTE  INSURER:  _____________________,  a  _________________,  and any successor
thereto or any replacement bond insurer substituted  pursuant to Section 3.29 of
the Indenture.

NOTE INSURER DEFAULT: The existence and continuance of any of the following: (a)
a failure by the Note Insurer to make a payment required under the Note
Insurance Policy in accordance with its terms; or (b)(i) the Note Insurer (A)
files any petition or commences any case or proceeding under any provision or
chapter of the Bankruptcy Code or any other similar federal or state law
relating to insolvency, bankruptcy, rehabilitation, liquidation or
reorganization, (B) makes a general assignment for the benefit of its creditors,
or (C) has an order for relief entered against it under the Bankruptcy Code or
any other similar federal or state law relating to insolvency, bankruptcy,
rehabilitation, liquidation or reorganization which is final and nonappealable;
or (ii) a court of competent jurisdiction, the New York Department of Insurance
or other competent regulatory authority enters a final and nonappealable order,
judgment or decree (A) appointing a custodian, trustee, agent or receiver for
the Note Insurer or for all or any material portion of its property or (B)
authorizing the taking of possession by a custodian, trustee, agent or receiver
of the Note Insurer (or the taking of possession of all or any material portion
of the property of the Note Insurer).

NOTE INTEREST RATE: With respect to each Payment Date after the first Payment
Date, a floating rate equal to the lesser of (i) with respect to each Payment
Date up to and including the Payment Date in _________ 200_, One-Month LIBOR
plus ____%, and with respect to each Payment Date thereafter, One-Month LIBOR
plus ____% and (ii) the Available Funds Interest Rate with respect to such
Payment Date. The Note Interest Rate for the first Payment Date will equal ____%
per annum.

NOTE OWNER:  The Beneficial Owner of a Note.

NOTE PERCENTAGE: With respect to any Payment Date and any Note, the ratio
expressed as a percentage of the Note Principal Balance of such Note to the
aggregate Note Principal Balance of all Notes immediately prior to such Payment
Date.

NOTE PRINCIPAL BALANCE: With respect to any Note, the initial Note Principal
Balance thereof minus all amounts distributed in respect of principal with
respect to such Note.

NOTE REGISTER: The register maintained by the Note Registrar in which the Note
Registrar shall provide for the registration of Notes and of transfers and
exchanges of Notes.

NOTE REGISTRAR: The Indenture Trustee, in its capacity as Note Registrar.

NOTEHOLDER: The Person in whose name a Note is registered in the Note Register,
except that, any Note registered in the name of the Depositor, the Issuing
Entity or the Indenture Trustee or any Affiliate of any of them shall be deemed
not to be outstanding and the registered holder will not be considered a
Noteholder or holder for purposes of giving any request, demand, authorization,
direction, notice, consent or waiver under the Indenture or the Trust Agreement
provided that, in determining whether the Indenture Trustee shall be protected
in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Notes that the Indenture Trustee or the Owner Trustee
knows to be so owned shall be so disregarded. Owners of Notes that have been
pledged in good faith may be regarded as Holders if the pledgee establishes to
the satisfaction of the Indenture Trustee or the Owner Trustee the pledgee's
right so to act with respect to such Notes and that the pledgee is not the
Issuing Entity, any other obligor upon the Notes or any Affiliate of any of the
foregoing Persons. Any bonds on which payments are made under the Note Insurance
Policy shall be deemed Outstanding until the Note Insurer has been reimbursed
with respect thereto and the Note Insurer shall be deemed the Noteholder thereof
to the extent of such unreimbursed payment.

NOTES:  The Notes designated as the "Notes" in the Indenture.

OFFICER'S CERTIFICATE: With respect to the Master Servicer, a certificate signed
by the President, Managing Director, a Director, a Vice President or an
Assistant Vice President, of the Master Servicer and delivered to the Indenture
Trustee. With respect to the Issuing Entity, a certificate signed by any
Authorized Officer of the Issuing Entity, under the circumstances described in,
and otherwise complying with, the applicable requirements of Section 10.01 of
the Indenture, and delivered to the Indenture Trustee. Unless otherwise
specified, any reference in the Indenture to an Officer's Certificate shall be
to an Officer's Certificate of any Authorized Officer of the Issuing Entity.

ONE-MONTH LIBOR: With respect to any Interest Period, the rate determined by the
Indenture Trustee on the related Interest Determination Date on the basis of the
offered rates of the Reference Banks for one-month United States dollar
deposits, as such rates appear on the Reuters Screen LIBOR Page, as of 11:00
a.m. (London time) on such Interest Determination Date. On each Interest
Determination Date, One-Month LIBOR for the related Interest Period will be
established by the Indenture Trustee as follows:

                  (xxxi)  If on such  Interest  Determination  Date  two or more
         Reference  Banks provide such offered  quotations,  One-Month LIBOR for
         the  related  Interest  Period  shall  be the  arithmetic  mean of such
         offered  quotations  (rounded upwards if necessary to the nearest whole
         multiple of 1/16%).

                  (xxxii) If on such Interest  Determination Date fewer than two
         Reference  Banks provide such offered  quotations,  One-Month LIBOR for
         the related  Interest Period shall be the higher of (i) One-Month LIBOR
         as determined on the previous Interest  Determination Date and (ii) the
         Reserve Interest Rate.

OPINION OF COUNSEL: A written opinion of counsel acceptable to Note Insurer who
may be in-house counsel for the Master Servicer if acceptable to the Indenture
Trustee, the Note Insurer and the Rating Agencies or counsel for the Depositor,
as the case may be.

ORIGINAL SPECIFIED SUBORDINATION AMOUNT: An amount equal to ____% of the
aggregate Principal Balance of the Mortgage Loans as of the Cut-Off Date.

ORIGINAL VALUE: Except in the case of a refinance Mortgage Loan, the lesser of
the Appraised Value or sales price of Mortgaged Property at the time a Mortgage
Loan is closed, and for a refinance Mortgage Loan, the Original Value is the
value of such property set forth in an appraisal acceptable to the Master
Servicer.

OUTSTANDING: With respect to the Notes, as of the date of determination, all
Notes theretofore executed, authenticated and delivered under this Indenture
except:

                  (xxxiii) Notes theretofore  cancelled by the Note Registrar or
         delivered to the Indenture Trustee for cancellation; and

                  (xxxiv)  Notes in exchange for or in lieu of which other Notes
         have  been  executed,  authenticated  and  delivered  pursuant  to  the
         Indenture  unless  proof  satisfactory  to  the  Indenture  Trustee  is
         presented that any such Notes are held by a holder in due course;

                  (xxxv) Notes that have been paid with funds provided under the
         Note Insurance Policy shall be deemed to be Outstanding  until the Note
         Insurer has been reimbursed with respect thereto.

OWNER TRUST: The BNP Paribas Mortgage ABS LLC Trust Series 200_-_ to be created
pursuant to the Trust Agreement.

OWNER TRUST ESTATE: The corpus of the Issuing Entity created by the Trust
Agreement which consists of items in Section 2.01 of the Trust Agreement.

OWNER  TRUSTEE:  ________________________  and its successors and assigns or any
successor owner trustee appointed pursuant to the terms of the Trust Agreement.

OWNER TRUSTEE FEE:

OWNER TRUSTEE FEE RATE:  ______% per annum.

PAYING AGENT: Any paying agent or co-paying agent appointed  pursuant to Section
3.03 of the Indenture, which initially shall be the Indenture Trustee.

PAYMENT ACCOUNT:  The account  established by the Indenture  Trustee pursuant to
Section 8.02 of the Indenture and Section 4.03 of the Servicing  Agreement.  The
Payment Account shall be an Eligible Account.

PAYMENT DATE: The 25th day of each month,  or if such day is not a Business Day,
then the next Business Day.

PERCENTAGE INTEREST: With respect to any Note, the percentage obtained by
dividing the Note Principal Balance of such Note by the aggregate of the Note
Principal Balances of all Notes. With respect to any Certificate, the percentage
on the face thereof.
PERSON: Any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization or government or any
agency or political subdivision thereof.

POOL BALANCE:  With respect to any date, the aggregate of the Principal Balances
of all Mortgage Loans as of such date.

PREFERENCE AMOUNT: Any amount previously distributed to an Owner on the Notes
that is recoverable and sought to be recovered as a voidable preference by a
trustee in bankruptcy pursuant to the United States Bankruptcy Code (11 U.S.C.),
as amended from time to time, in accordance with a final nonappealable order of
a court having competent jurisdiction.

PREMIUM AMOUNT: The amount of premium due to the Note Insurer in accordance with
the terms of the Insurance Agreement.

PREPAYMENT INTEREST SHORTFALL: As to any Payment Date and any Mortgage Loan
(other than a Mortgage Loan relating to an REO Property) that was the subject of
(a) a Principal Prepayment in full during the related Prepayment Period, an
amount equal to the excess of interest accrued during the related Prepayment
Period at the Net Mortgage Rate on the Principal Balance of such Mortgage Loan
over the amount of interest (adjusted to the Net Mortgage Rate) paid by the
Mortgagor for such Prepayment Period to the date of such Principal Prepayment in
full or (b) a partial Prepayment during the prior calendar month, an amount
equal to interest accrued during the related Prepayment Period at the Net
Mortgage Rate on the amount of such partial Prepayment.

PREPAYMENT  PERIOD:  As to any Payment Date,  the calendar  month  preceding the
month of distribution.

PRIMARY  INSURANCE POLICY:  Each primary policy of mortgage  guaranty  insurance
issued by a Qualified Insurer or any replacement policy therefor.

PRINCIPAL BALANCE: With respect to any Mortgage Loan or related REO Property, at
any given time, (i) the Cut-off Date Principal Balance of the Mortgage Loan,
minus (ii) the sum of (a) the principal portion of the Monthly Payments due with
respect to such Mortgage Loan or REO Property during each Due Period ending
prior to the most recent Payment Date which were received or with respect to
which an Advance was made, and (b) all Principal Prepayments with respect to
such Mortgage Loan or REO Property, and all Insurance Proceeds, Liquidation
Proceeds and REO Proceeds, to the extent applied by the Master Servicer as
recoveries of principal in accordance with the Servicing Agreement with respect
to such Mortgage Loan or REO Property, and (c) any Realized Loss with respect
thereto for any previous Payment Date.

PRINCIPAL PAYMENT AMOUNT: With respect to any Payment Date (a) other than the
Final Scheduled Payment Date, and the first Payment Date following any
acceleration of the Notes following an Event of Default, the lesser of (a) the
sum of the Available Funds remaining after distributions pursuant to clause (i)
of Section 3.05 of the Indenture and any portion of any Insured Payment for such
Payment Date representing a Subordination Deficit and (b) the sum of:

                           (1) the  principal  portion of all  Monthly  Payments
                  received  during the  related  Due Period or  advanced on each
                  Mortgage Loan;

                           (2)  the  Principal  Balance  of  any  Mortgage  Loan
                  repurchased during the related Prepayment Period (or deemed to
                  have  been  so  repurchased)  pursuant  to the  Mortgage  Loan
                  Purchase Agreement or Section 3.18 of the Servicing  Agreement
                  and the amount of any Substitution  Adjustment  Amounts during
                  the related Prepayment Period;

                           (3) the  principal  portion of all other  unscheduled
                  collections   (including,   without   limitation,    Principal
                  Prepayments in full, partial Prepayments,  Insurance Proceeds,
                  Liquidation  Proceeds and REO  Proceeds)  received  during the
                  related  Prepayment Period to the extent applied by the Master
                  Servicer as payments or recoveries of principal of the related
                  Mortgage Loan;

                           (4) any  Insured  Payment  made with  respect  to any
                  Subordination Deficit; and

MINUS

                           (5) the amount of any Subordination  Reduction Amount
                  for such Payment Date;

and (b) with respect to the Final Scheduled Payment Date, and the first Payment
Date following any acceleration of the Notes following an Event of Default, the
amount necessary to reduce the Note Principal Balance to zero.

PRINCIPAL PREPAYMENT: Any payment of principal made by the Mortgagor on a
Mortgage Loan which is received in advance of its scheduled Due Date and which
is not accompanied by an amount of interest representing scheduled interest due
on any date or dates in any month or months subsequent to the month of
prepayment.

PROCEEDING:   Any  suit  in  equity,   action  at  law  or  other   judicial  or
administrative proceeding.

PURCHASE  PRICE:  The meaning  specified in Section  2.2(a) of the Mortgage Loan
Purchase Agreement.

PURCHASER:  _________________________,   a  ____________  corporation,  and  its
successors and assigns.

QUALIFIED INSURER: A mortgage guaranty insurance company duly qualified as such
under the laws of the state of its principal place of business and each state
having jurisdiction over such insurer in connection with the insurance policy
issued by such insurer, duly authorized and licensed in such states to transact
a mortgage guaranty insurance business in such states and to write the insurance
provided by the insurance policy issued by it, approved as an insurer by the
Master Servicer and as a FNMA-approved mortgage insurer.

RATING AGENCY: Any nationally recognized statistical rating organization, or its
successor, that rated the Notes at the request of the Depositor at the time of
the initial issuance of the Notes. Initially, Moody's or Standard & Poor's. If
such organization or a successor is no longer in existence, "Rating Agency"
shall be such nationally recognized statistical rating organization, or other
comparable Person, designated by the Note Insurer so long as no Note Insurer
Default exists, notice of which designation shall be given to the Indenture
Trustee. References herein to the highest short term unsecured rating category
of a Rating Agency shall mean A-1 or better in the case of Standard & Poor's and
P-1 or better in the case of Moody's and in the case of any other Rating Agency
shall mean such equivalent ratings. References herein to the highest long-term
rating category of a Rating Agency shall mean "AAA" in the case of Standard &
Poor's and "Aaa" in the case of Moody's and in the case of any other Rating
Agency, such equivalent rating.

REALIZED LOSS: With respect to each Mortgage Loan (or REO Property) as to which
a Cash Liquidation or REO Disposition has occurred, an amount (not less than
zero) equal to (i) the Principal Balance of the Mortgage Loan (or REO Property)
as of the date of Cash Liquidation or REO Disposition, plus (ii) interest (and
REO Imputed Interest, if any) at the Net Mortgage Rate from the Due Date as to
which interest was last paid or advanced to Noteholders up to the last day of
the month in which the Cash Liquidation (or REO Disposition) occurred on the
Principal Balance of such Mortgage Loan (or REO Property) outstanding during
each Due Period that such interest was not paid or advanced, minus (iii) the
proceeds, if any, received during the month in which such Cash Liquidation (or
REO Disposition) occurred, to the extent applied as recoveries of interest at
the Net Mortgage Rate and to principal of the Mortgage Loan, net of the portion
thereof reimbursable to the Master Servicer or any Subservicer with respect to
related Advances or expenses as to which the Master Servicer or Subservicer is
entitled to reimbursement thereunder but which have not been previously
reimbursed. With respect to each Mortgage Loan which has become the subject of a
Deficient Valuation, the difference between the principal balance of the
Mortgage Loan outstanding immediately prior to such Deficient Valuation and the
principal balance of the Mortgage Loan as reduced by the Deficient Valuation.
With respect to each Mortgage Loan which has become the object of a Debt Service
Reduction, the amount of such Debt Service Reduction.

RECORD DATE: With respect to the Notes and any Payment Date, the last day of the
calendar month preceding such Payment Date.

REFERENCE BANKS: Bankers Trust Company, Barclay's Bank PLC, The Bank of Tokyo
and National Westminster Bank PLC and their successors in interest; provided
that if any of the foregoing banks are not suitable to serve as a Reference
Bank, then any leading banks selected by the Indenture Trustee 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 Company or any Affiliate
thereof, (iii) whose quotations appear on the Reuters Screen LIBO Page on the
relevant Interest Determination Date and (iv) which have been designated as such
by the Indenture Trustee.

REGISTERED HOLDER: The Person in whose name a Note is registered in the Note
Register on the applicable Record Date.

RELATED DOCUMENTS: With respect to each Mortgage Loan, the documents specified
in Section 2.1(b) of the Mortgage Loan Purchase Agreement and any documents
required to be added to such documents pursuant to the Mortgage Loan Purchase
Agreement, the Trust Agreement, Indenture or the Servicing Agreement.

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

RELIEF ACT SHORTFALL: For any Payment Date, As to any Payment Date and any
Mortgage Loan (other than a Mortgage Loan relating to an REO Property) any
shortfalls relating to the Relief Act or similar legislation or regulations.

REO ACQUISITION: The acquisition by the Master Servicer on behalf of the
Indenture Trustee for the benefit of the Noteholders of any REO Property
pursuant to Section 3.13 of the Servicing Agreement.

REO DISPOSITION: As to any REO Property, a determination by the Master Servicer
that it has received substantially all Insurance Proceeds, Liquidation Proceeds,
REO Proceeds and other payments and recoveries (including proceeds of a final
sale) which the Master Servicer expects to be finally recoverable from the sale
or other disposition of the REO Property.

REO IMPUTED INTEREST: As to any REO Property, for any period, an amount
equivalent to interest (at the Net Mortgage Rate that would have been applicable
to the related Mortgage Loan had it been outstanding) on the unpaid principal
balance of the Mortgage Loan as of the date of acquisition thereof for such
period.

REO PROCEEDS: Proceeds, net of expenses, received in respect of any REO Property
(including, without limitation, proceeds from the rental of the related
Mortgaged Property) which proceeds are required to be deposited into the
Collection Account only upon the related REO Disposition.

REO PROPERTY: A Mortgaged Property that is acquired by the Issuing Entity in
foreclosure or by deed in lieu of foreclosure.

REPURCHASE EVENT: With respect to any Mortgage Loan, either (i) a discovery
that, as of the Closing Date the related Mortgage was not a valid lien on the
related Mortgaged Property subject only to (A) the lien of any prior mortgage
indicated on the Mortgage Loan Schedule, (B) the lien of real property taxes and
assessments not yet due and payable, (C) covenants, conditions, and
restrictions, rights of way, easements and other matters of public record as of
the date of recording of such Mortgage and such other permissible title
exceptions as are permitted and (D) other matters to which like properties are
commonly subject which do not materially adversely affect the value, use,
enjoyment or marketability of the related Mortgaged Property or (ii) with
respect to any Mortgage Loan as to which the Seller delivers an affidavit
certifying that the original Mortgage Note has been lost or destroyed, a
subsequent default on such Mortgage Loan if the enforcement thereof or of the
related Mortgage is materially and adversely affected by the absence of such
original Mortgage Note.

REPURCHASE PRICE: With respect to any Mortgage Loan required to be repurchased
on any date pursuant to the Mortgage Loan Purchase Agreement or purchased by the
Master Servicer pursuant to the Servicing Agreement, an amount equal to the sum,
without duplication, of (i) 100% of the Principal Balance thereof (without
reduction for any amounts charged off) and (ii) unpaid accrued interest at the
Mortgage Rate on the outstanding principal balance thereof from the Due Date to
which interest was last paid by the Mortgagor to the first day of the month
following the month of purchase plus (iii) the amount of Advances and any
unreimbursed Servicing Advances or unreimbursed Advances made with respect to
such Mortgage Loan plus (iv) any other amounts owed to the Master Servicer or
the Subservicer pursuant to Section 3.07 of the Servicing Agreement not included
in clause (iii) of this definition.

REQUIRED SUBORDINATION AMOUNT: With respect to any Payment Date occurring from
the initial Payment Date and ending on the later of (i) the date on which the
aggregate Principal Balance of the Mortgage Loans is 50% of the initial
aggregate Principal Balance of the Mortgage Loans and (ii) the 30th Payment
Date, the greater of:

         (a) the Original Specified Subordination Amount; and

         (b) two times the excess of (1) 50% of the aggregate  Principal Balance
of the Mortgage Loans which are 91 or more days delinquent  (including  Mortgage
Loans in foreclosure  and REO Properties) as of such date over (2) two times the
current Net Monthly Excess Cash Flow for such Payment Date; and

with respect to any Payment Date thereafter, the greatest of:

         (c) the lesser of (1) the Original Specified  Subordination  Amount and
(2) two times  ____%  times the  aggregate  Note  Principal  Balance  as of such
Payment Date;

         (d) two times the excess of (A) 50% of the aggregate  Principal Balance
of the Mortgage Loans which are 91 or more days delinquent  (including  Mortgage
Loans in foreclosure  and REO Properties) as of such date over (B) two times the
current Net Monthly Excess Cash Flow for such Payment Date;

         (e) 0.5% of the Cut-Off Date Principal  Balance of the Mortgage  Loans;
and

         (f) an amount  equal to the  outstanding  balance  of the four  largest
Mortgage Loans as of the Cut-Off Date;

Provided, however, that if (x) a Servicer Default has occurred and is continuing
as of such Payment Date, and such Servicer Default has not been waived by the
Note Insurer or (y) a claim has been made on the Note Insurance Policy by the
Indenture Trustee, the Required Subordination Amount shall not decrease on any
Payment Date.

RESERVE INTEREST RATE: With respect to any Interest Determination Date, the rate
per annum that the Indenture Trustee determines to be either (i) the arithmetic
mean (rounded upwards if necessary to the nearest whole multiple of 1/16%) of
the three-month United States dollar lending rates which New York City banks
selected by the Indenture Trustee are quoting on the relevant Interest
Determination Date to the principal London offices of leading banks in the
London interbank market or (ii) in the event that the Indenture Trustee can
determine no such arithmetic mean, the lowest three-month United States dollar
lending rate which New York City banks selected by the Indenture Trustee are
quoting on such Interest Determination Date to leading European banks.

RESPONSIBLE OFFICER: With respect to the Indenture Trustee, any officer of the
Indenture Trustee with direct responsibility for the administration of the Trust
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.

SECURITIES ACT: The Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

SECURITY:  Any of the Certificates or Notes.

SECURITYHOLDER OR HOLDER: Any Noteholder or a Certificateholder.

SECURITY INSTRUMENT: A written instrument creating a valid first lien on a
Mortgaged Property securing a Mortgage Note, which may be any applicable form of
mortgage, deed of trust, deed to secure debt or security deed, including any
riders or addenda thereto.

SELLER:  _______________________,  a __________ corporation,  and its successors
and assigns.

SERVICING ACCOUNT: The separate trust account created and maintained by the
Master Servicer or each Subservicer with respect to the Mortgage Loans or REO
Property, which shall be an Eligible Account, for collection of taxes,
assessments, insurance premiums and comparable items as described in Section
3.08 of the Servicing Agreement.

SERVICING ADVANCES: All customary, reasonable and necessary "out of pocket"
costs and expenses incurred in connection with a default, delinquency or other
unanticipated event in the performance by the Master Servicer of its servicing
obligations, including, without duplication, 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, (iii) the
management and liquidation of any REO Property and (iv) compliance with the
obligations under Sections 3.10, 3.11, 3.13 of the Servicing Agreement.

SERVICING AGREEMENT: The Servicing Agreement dated as of ______ __, 200_,
between the Master Servicer and the Issuing Entity.

SERVICING CERTIFICATE: A certificate completed and executed by a Servicing
Officer on behalf of the Master Servicer in accordance with Section 4.01 of the
Servicing Agreement.

SERVICING  DEFAULT:  The  meaning  assigned  in  Section  6.01 of the  Servicing
Agreement.

SERVICING  FEE: With respect to any Mortgage Loan, the sum of the related Master
Servicing Fee and the related Subservicing Fee.

SERVICING FEE RATE:  With respect to any Mortgage  Loan,  the sum of the related
Master Servicing Fee Rate and the Subservicing Fee Rate.

SERVICING OFFICER: Any officer of the Master Servicer involved in, or
responsible for, the administration and servicing of the Mortgage Loans whose
name and specimen signature appear on a list of servicing officers furnished to
the Indenture Trustee (with a copy to the Note Insurer) by the Master Servicer,
as such list may be amended from time to time.

SINGLE NOTE:  A Note in the amount of $1,000.

STANDARD & POOR'S:  Standard  & Poor's  Ratings  Service,  or its  successor  in
interest.

STATUTORY  TRUST  STATUTE:  Chapter 38 of Title 12 of the Delaware Code, 12 DEL.
Code ss.ss. 3801 ET SEQ., as the same may be amended from time to time.

SUBORDINATION AMOUNT: As of any Payment Date, the excess, if any, of (x) the sum
of the aggregate Principal Balances of the Mortgage Loans as of the close of
business on the last day of the related Due Period as of such Payment Date over
(y) the Note Principal Balance of the Notes as of such Payment Date (and
following the making of all distributions on such Payment Date)

SUBORDINATION DEFICIT: With respect to any Payment Date, the amount, if any, by
which (x) the aggregate Note Principal Balance of the Notes as of such Payment
Date, and following the making of all distributions to be made on such Payment
Date (except for any payment to be made as to principal from proceeds of the
Note Insurance Policy), exceeds (y) the aggregate Principal Balances of the
Mortgage Loans as of the close of business on the preceding Due Date on such
Payment Date.

SUBORDINATION INCREASE AMOUNT: With respect to any Payment Date, the amount of
any Net Monthly Excess Cashflow (including any Subordination Reduction Amount)
available in the Payment Account to increase the Subordination Amount up to the
Required Subordination Amount.

SUBORDINATION REDUCTION AMOUNT: With respect to any Payment Date, an amount
equal to the lesser of (a) the Excess Subordination Amount and (b) the principal
collections received by the Master Servicer with respect to the prior Due
Period.

SUBSERVICER: Any Person with whom the Master Servicer has entered into a
Subservicing Agreement as a Subservicer by the Master Servicer and acceptable to
the Note Insurer and the Indenture Trustee, including the Initial Subservicers.

SUBSERVICING ACCOUNT: An Eligible Account established or maintained by a Sub
servicer as provided for in Section 3.06(e) of the Servicing Agreement.

SUBSERVICING AGREEMENT: The written contract between the Master Servicer and any
Subservicer relating to servicing and administration of certain Mortgage Loans
as provided in Section 3.02 of the Servicing Agreement.

SUBSERVICING FEE: With respect to each Mortgage Loan and any date of
determination, the product of (i) the Subservicing Fee Rate divided by 12 and
(ii) the Principal Balance of such Mortgage Loans as of such date.

SUBSERVICING FEE RATE: For any date of determination, ____% per annum.

SUBSTITUTION ADJUSTMENT AMOUNT: With respect to any Eligible Substitute Mortgage
Loan, the amount as defined in Section 2.03 of the Servicing Agreement.

TELERATE SCREEN PAGE 3750: The display designated as page 3750 on the Telerate
Service (or such other page as may replace page 3750 on that service for the
purpose of displaying London interbank offered rates of major banks). If such
rate does not appear on such page (or such other page as may replace that page
on that service, or if such service is no longer offered, such other service for
displaying One-Month LIBOR or comparable rates as may be selected by the Issuing
Entity after consultation with the Indenture Trustee), the rate will be the
Reference Bank Rate.

TREASURY REGULATIONS: Regulations, including proposed or temporary Regulations,
promulgated under the Code. References herein to specific provisions of proposed
or temporary regulations shall include analogous provisions of final Treasury
Regulations or other successor Treasury Regulations.

TRUST  AGREEMENT:  The Trust  Agreement  dated as of ______ __, 200_ between the
Owner Trustee and the Depositor.

TRUST ESTATE: The meaning specified in the Granting Clause of the Indenture.

TRUST INDENTURE ACT OR TIA: The Trust Indenture Act of 1939, as amended from
time to time, as in effect on any relevant date.

UCC: The Uniform Commercial Code, as amended from time to time, as in effect in
any specified jurisdiction.

WEIGHTED AVERAGE NET MORTGAGE RATE: With respect to the Mortgage Loans in the
aggregate, and any Due Date, the average of the Net Mortgage Rate for each
Mortgage Loan as of the last day of the related Due Period weighted on the basis
of the related Principal Balances outstanding as of the last day of the related
Due Period for each Mortgage Loan as determined by the Master Servicer in
accordance with the Master Servicer's normal servicing procedures.<PAGE>
                                                                    Exhibit 10.1

                              Dated 7 December 2005

                                   AGZ HOLDING
                                    as Parent

                           THE COMPANIES NAMED HEREIN
                         as Borrowers and/or Guarantors

                            THE ENTITIES NAMED HEREIN
                                   as Lenders

                                     CALYON
                            as Mandated Lead Arranger

                                     CALYON
                                as Facility Agent

                                     CALYON
                                as Security Agent

                                   ----------

                           SENIOR FACILITIES AGREEMENT

                                   ----------

                             SHEARMAN & STERLING LLP

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                      PAGE
------                                                                      ----
<S>                                                                         <C>
1.  INTERPRETATION.......................................................      1
2.  THE FACILITIES.......................................................     16
3.  PARTICIPATION OF LENDERS.............................................     17
4.  CONDITIONS PRECEDENT.................................................     18
5.  DRAWDOWN PROCEDURES..................................................     19
6.  DEMANDS UNDER BANK GUARANTEES........................................     23
7.  INTEREST.............................................................     26
8.  SELECTION OF INTEREST PERIODS........................................     28
9.  MARKET DISRUPTION....................................................     29
10. REPAYMENT OF DRAWINGS................................................     30
11. PREPAYMENT AND CANCELLATION..........................................     30
12. PAYMENTS.............................................................     35
13. TAXES................................................................     37
14. CHANGE IN CIRCUMSTANCES..............................................     39
15. FEES, EXPENSES AND STAMP DUTIES......................................     41
16. GUARANTEE AND INDEMNITY..............................................     43
17. CHANGES TO OBLIGORS AND SECURITY.....................................     45
18. REPRESENTATIONS AND WARRANTIES.......................................     46
19. UNDERTAKINGS.........................................................     50
20. EVENTS OF DEFAULT....................................................     68
21. THE AGENTS AND THE OTHER FINANCE PARTIES.............................     74
22. PRO RATA PAYMENTS....................................................     79
23. SET-OFF..............................................................     80
24. NOTICES..............................................................     81
25. CONFIDENTIALITY......................................................     82
26. CHANGES TO PARTIES...................................................     82
27. LENDERS' DECISIONS...................................................     85
28. INDEMNITIES..........................................................     86
29. MISCELLANEOUS........................................................     87
30. GOVERNING LAW AND SUBMISSION TO JURISDICTION.........................     87
SCHEDULE 1...............................................................     89
Lenders  89
SCHEDULE 2...............................................................     90
Security Documents.......................................................     90
SCHEDULE 3...............................................................     91
Documentary Conditions Precedent.........................................     91
SCHEDULE 4...............................................................     94
Part 1 - Drawdown Request - Advances.....................................     94
Part 2 - Drawdown Request - Bank Guarantees..............................     95
SCHEDULE 5...............................................................     96
Transfer Certificate.....................................................     96
Schedule 1 to Transfer Certificate.......................................     99
Schedule 2 to Transfer Certificate.......................................    100
Particulars relating to the Transferee...................................    100
SCHEDULE 6...............................................................    101
Accession Document.......................................................    101
SCHEDULE 7...............................................................    104
Auditors certificate.....................................................    104
SCHEDULE 8...............................................................    105
Form of effective global rate letter.....................................    105
SCHEDULE 9...............................................................    107
Part 1 - Distribution Companies..........................................    107
Part 2 - Storage and Logistics Companies.................................    108
SCHEDULE 10..............................................................    109
Part 1 - Supply Agreements...............................................    109
Part 2 - Other Material Contracts........................................    110
</TABLE>

<PAGE>

<TABLE>
<S>                                                                         <C>
SCHEDULE 11..............................................................    111
Mandatory Cost Formulae..................................................    111
</TABLE>

<PAGE>

THIS FACILITIES AGREEMENT is made on 7 December 2005

BETWEEN:

(1)  AGZ HOLDING (a company incorporated in France as a societe anonyme with
     registered number 413 765 108 RCS Nanterre) (the "PARENT");

(2)  ANTARGAZ (a company incorporated in France as a societe anonyme with
     registered number 572 126 043 RCS Nanterre) ("ANTARGAZ");

(3)  CALYON as mandated lead arranger (the "ARRANGER");

(4)  THE FINANCIAL INSTITUTIONS listed in schedule 1 as Lenders;

(5)  CALYON in its capacity as facility agent for the Lenders under the Senior
     Finance Documents (the "FACILITY AGENT"); and

(6)  CALYON in its capacity as agent for the Finance Parties under the Security
     Documents (the "SECURITY AGENT").

WHEREAS:

     The Parent has requested the Lenders to make available to it a EUR
     380,000,000 Term Facility for the purpose of discharging indebtedness under
     the Existing Term Facility (as defined below) and the Intra-Group Bonds and
     High Yield Notes (as defined below) and for other general corporate
     purposes and the Parent and Antargaz have requested the Lenders to make
     available to them and to other Borrowers (as defined below) a EUR
     50,000,000 Revolving Facility.

THE PARTIES TO THIS AGREEMENT AGREE as follows:

1.   INTERPRETATION

1.1  DEFINITIONS

     In this agreement:

     "ACCESSION DOCUMENT" means an agreement substantially in the form set out
     in schedule 6 under which a Group Company becomes a Borrower and/or a
     Guarantor;

     "ACCOUNTING HALF-YEAR" means each period of approximately 26 weeks ending
     on the last day of September and March in a Financial Year;

     "ADVANCES" means the Term Advance and the Revolving Advances;

     "AFFILIATE" means a Subsidiary or a Holding Company of another person or
     any other Subsidiary of a Holding Company of that other person;

     "AGENTS" means the Facility Agent and the Security Agent;

     "ANNUAL ACCOUNTS" means the audited annual accounts of the Group delivered
     or to be delivered to the Facility Agent under clause 19.10(c)(i)
     (Financial statements);

                                       1

<PAGE>

     "ANNUAL MANAGEMENT ACCOUNTS" means the annual consolidated management
     accounts (before audit) of the Group delivered or to be delivered to the
     Facility Agent under clause 19.10(c)(i) (Financial statements);

     "APPROVED ACCOUNTING PRINCIPLES" means French gaap and, subject to those
     principles, the accounting principles, standards and practices on the basis
     of which the Original Audited Accounts were prepared;

     "APPROVED PROJECTIONS" means the financial projections and forecast for the
     business of the Group in the agreed form prepared on a basis consistent
     with the Approved Accounting Principles;

     "AUDITORS" means PricewaterhouseCoopers and Ernst & Young and/or any other
     firm of accountants which the Parent appoints in accordance with clause
     19.10(b) (Books of account and auditors);

     "AVAILABILITY PERIOD" means the period starting on the Signing Date and
     ending:

     (a)  on 31 January 2006 (inclusive) in the case of the Term Facility, and

     (b)  one month before the Revolving Facility Repayment Date in the case of
          the Revolving Facility;

     "BANK GUARANTEE" means a guarantee or letter of credit issued by an Issuing
     Lender under the Revolving Facility in the form agreed by the Parent, the
     Facility Agent and the relevant Issuing Lender;

     "BENEFICIARY" means the person approved by the relevant Issuing Lender in
     whose favour a Bank Guarantee has been or is to be issued;

     "BORROWERS" means the Parent, Antargaz and each other Group Company which
     becomes a borrower under this agreement in accordance with clause 17.1
     (Additional Borrowers);

     "BUSINESS DAY" means a day (other than a Saturday or a Sunday) on which
     banks and financial markets are open in Paris and London for the
     transaction of business of the nature required by this agreement and:

     (a)  in relation to a transaction involving Euros, a day which is a Target
          Day; and

     (b)  in relation to a transaction involving the Optional Currency, a day on
          which banks and financial institutions are open in the principal
          financial centre of the country of the Optional Currency;

     "CASH COLLATERAL ACCOUNT" means an account with the Security Agent opened
     in the name of an Obligor into which amounts are to be paid for the
     purposes of clause 1.4 (Cash cover) and over which the Security Agent has
     or shall have a first priority security interest under the Security
     Documents;

     "CASH EQUIVALENTS" has the meaning given to it in clause 19.12 (Financial
     definitions);

     "CERTAIN FUNDS PERIOD" means the period commencing on the Signing Date and
     ending on the earlier of (a) the first Drawdown Date (inclusive) and (b)
     the last day of the Availability Period of the Term Facility (inclusive);

     "COMMITMENT" means, in relation to a Lender, its Term Commitment or its
     Revolving Commitment;

     "CONSTITUTIONAL DOCUMENTS" means the statuts and k-bis of the Parent in the
     agreed form;

                                       2

<PAGE>

     "CONTINGENT LIABILITY" means:

     (a)  the maximum actual and/or contingent liability of an Issuing Lender
          under a Bank Guarantee at any time; or

     (b)  the maximum actual and/or contingent liability of a Lender in relation
          to a Bank Guarantee at any time under clause 6.4(b) (Indemnities);

     "CORE BUSINESS" means the existing core business of the Group as at the
     Signing Date, consisting of (i) the purchase, storage, transport and
     distribution of gas and liquefied petroleum gas (including butane and
     propane-based LPG and their substitutes and derivatives, (ii) the
     manufacture, trade and repairing of equipment relating to the making,
     storage, transport, distribution and use of gas and liquefied petroleum gas
     (including butane and propane-based LPG) and their substitutes and
     derivatives, (iii) the purchase and sale of patents, licences,
     manufacturing processes, trademarks and factory models and designs in
     connection with (i) and (ii) and (iv) all other ancillary and related
     activities in relation to (i) to (iii);

     "DEFAULT" means an Event of Default or a Potential Event of Default;

     "DERIVATIVE INSTRUMENT" means any forward rate agreement, option, swap,
     cap, floor, any combination or hybrid of the foregoing and any other
     financial derivative agreement;

     "DISTRIBUTION COMPANIES" means the companies and other corporate entities
     listed in part 1 of schedule 9;

     "DRAWDOWN DATE" means the date for the making of a Drawing, as specified by
     the relevant Borrower in the relevant Drawdown Request;

     "DRAWDOWN REQUEST" means a notice requesting an Advance or the issue of a
     Bank Guarantee in the form set out in part 1 or 2 (as appropriate) of
     schedule 4;

     "DRAWING" means a utilisation by a Borrower of a Facility;

     "EBITDA" has the meaning given to it in clause 19.12 (Financial
     definitions);

     "ENVIRONMENT" means any and all living organisms (including man),
     ecosystems, gases, air, vapours, liquids, water, land, surface and
     sub-surface soils, rock and all other natural resources or part of such
     resources, including artificial or man-made buildings, structures or
     enclosures;

     "ENVIRONMENTAL APPROVAL" means any consent required under or in relation to
     Environmental Laws;

     "ENVIRONMENTAL LAWS" means all international, European Union, national,
     federal, state or local statutes, orders, regulations or other law or
     subordinate legislation or common law or guidance notes or regulatory codes
     of practice, circulars and equivalent controls (including judicial
     interpretation of any of the foregoing) concerning the Environment or
     health and safety which are in existence now or in the future and are
     binding at any time on any Group Company in the relevant jurisdiction in
     which that Group Company has been or is operating (including by the export
     of its products or its waste to that jurisdiction);

     "EONIA" means in relation to a Business Day and any amount in Euro:

     (a)  the overnight rate per annum calculated by the European Banking
          Federation for the relevant Business Day which appears on Telerate
          Screen page 247 or any other service which displays such rate which
          the Facility Agent, after consultation with the Lenders and the
          Parent, selects; or

                                       3

<PAGE>

     (b)  if the rate referred to in paragraph (a) above is not available for
          that Business Day, the arithmetic mean of the rates (rounded upwards
          to four decimals places) as supplied to the Facility Agent at its
          request quoted by the Reference Banks to the leading banks in the
          European interbank market;

     at or about 7.00 pm (Brussels time) on such day for offering of deposits in
     Euro for the period from one Business Day to the immediately following
     Business Day;

     "EQUITY CONTRIBUTION" means:

     (a)  any increase in the share capital of the Parent by way of cash
          contribution; or

     (b)  the incurrence by the Parent of Financial Indebtedness provided to it
          pursuant to an unsecured loan or other debt or debt equity instrument
          in each case deeply subordinated (with capitalised interests) on terms
          acceptable to the Facility Agent acting reasonably;

     "EURIBOR" means, in relation to any Advance or overdue amount in Euro, the
     rate per annum equal to the offered quotation which appears on Telerate
     Screen page 248 (or any replacement page on that service) as of 11.00 am on
     the applicable Rate Fixing Day for a period comparable to its Interest
     Period or, if no Telerate service is available, on any other service which
     displays an average European Banking Federation Interest Settlement Rate
     for Euro which the Facility Agent, after consultation with the Lenders and
     the Parent, selects;

     "EURO", "EUR" and "E" means the single currency of the Participating Member
     States of the European Union;

     "EURO EQUIVALENT" means, in relation to an amount denominated in a currency
     other than Euro, the amount of that currency converted into the relevant
     amount of Euros at the Euro Spot Rate;

     "EURO SPOT RATE" means the spot rate of exchange of the Facility Agent (as
     determined by the Facility Agent) for the purchase of the aggregate amount
     of Euros with a currency other than Euro in the European foreign exchange
     market in the ordinary course of business at or about 10:00 am on a
     particular day;

     "EVENT OF DEFAULT" means any event specified in clause 20.1 (List of
     events);

     "EXISTING FACILITIES" means the Existing Term Facility and the Existing
     Revolving Facility;

     "EXISTING FACILITIES AGREEMENT" means the senior facilities agreement dated
     26 June 2003, as amended and restated on 2 July 2003 and as amended on 1
     August 2003, 15 January 2004 and 18 June 2004 between, inter alia, the
     Parent, Antargaz, the lenders named therein and Calyon as facility agent
     and security agent in relation to the Existing Facilities;

     "EXISTING REVOLVING FACILITY" means the revolving credit facility in the
     principal amount of EUR 50,000,000 granted to the Borrowers under the
     Existing Facilities Agreement;

     "EXISTING TERM FACILITY" means the term facilities in the initial principal
     amount of EUR 220,000,000 granted to the Parent under the Existing
     Facilities Agreement;

     "EXISTING INDEBTEDNESS" means the Existing Facilities, the High Yield Notes
     and the Intra-Group Bonds;

     "FACILITIES" means the Term Facility and the Revolving Facility;

                                       4

<PAGE>

     "FEES LETTER" means the letter from the Facility Agent to the Parent dated
     on or about the Signing Date setting out details of certain fees payable by
     the Parent in connection with the Facilities;

     "FINANCE DOCUMENTS" means the Senior Finance Documents, the High Yield
     Documents and the Intra-Group Bond Documents;

     "FINANCE PARTIES" means the Arranger, each Agent, each Lender and each
     Issuing Lender;

     "FINANCIAL INDEBTEDNESS" means (without double counting) any indebtedness
     in relation to or arising under or in connection with:

     (a)  any money borrowed (including any overdraft);

     (b)  any debenture, bond (other than a performance bond issued in the
          ordinary course of trading by one Group Company in relation to the
          obligations of another Group Company), note or loan stock or other
          similar instrument;

     (c)  any acceptance or documentary credit;

     (d)  any receivable sold or discounted (other than to the Security Agent
          pursuant to any Security Document) provided that, for the purposes of
          any calculation of the amount of Financial Indebtedness, the amount of
          indebtedness to be taken into account under this paragraph (d) will be
          the amount of the consideration received by the relevant Group Company
          for the sale or discounting of the relevant receivable;

     (e)  the purchase price of any asset or service to the extent payable by a
          Group Company after the time of sale or delivery to a Group Company,
          where the deferred payment is:

          (i)  arranged as a method of raising vendor financing; and

          (ii) paid more than six months after the sale or delivery date;

     (f)  the sale price of any asset or service to the extent paid before the
          time of sale or delivery by the Group Company liable to effect that
          sale or delivery, where the advance payment is arranged as a method of
          raising finance;

     (g)  any finance lease, hire purchase, credit sale or conditional sale
          agreement which in each case would be treated as such in accordance
          with French gaap;

     (h)  Derivative Instruments (provided that, for the purpose of any
          calculation of the amount of Financial Indebtedness to be taken into
          account under this paragraph (h) in respect of the relevant Derivative
          Instrument, that amount shall be the net amount of the payment
          obligations outstanding from the relevant Group Company under that
          Derivative Instrument, less the amount of any margin then placed by
          that Group Company with the relevant counterparty in connection with
          that Derivative Instrument);

     (i)  any amount payable by any Obligor in relation to the reduction of any
          share capital or redemption of any securities issued by it or any
          other Group Company, other than amounts payable to another Obligor;

     (j)  any amount raised under any other transaction having the commercial
          effect of a borrowing (other than refundable deposits payable and
          consigned containers accrual liability); or

     (k)  any guarantee issued by a Group Company of indebtedness of any person
          of a type referred to in paragraphs (a) to (j) (inclusive) above;

                                       5

<PAGE>

     for the avoidance of doubt, the amount of indebtedness to be taken into
     account for the purpose of any calculation of the amount of Financial
     Indebtedness shall not double-count guarantees granted by any Group Company
     in respect of Financial Indebtedness incurred by any Group Company and will
     not include guarantees of obligations incurred by any Group Company which
     obligations do not constitute indebtedness of a type referred to in
     paragraphs (a) to (j) (inclusive) above;

     "FINANCIAL YEAR" means the period of 12 months ending on 30 September in
     each year;

     "FINCO" means AGZ Finance, a company incorporated under the laws of the
     Grand Duchy Luxembourg as a societe anonyme with registered number RC
     Luxembourg B 87.750;

     "FRENCH GAAP" means accounting principles, standards and practices
     generally accepted from time to time in France;

     "FINAL REFINANCING DATE" means the date of full redemption of the High
     Yield Notes and the Intra-Group Bonds which shall not be later than the
     60th day following the first Drawdown Date;

     "GEOGAZ" has the meaning given to it in part 2 of schedule 9;

     "GEOVEXIN" has the meaning given to it in part 2 of schedule 9;

     "GROUP" means the Parent and its Subsidiaries from time to time;

     "GROUP COMPANY" means a member of the Group;

     "GROUPEMENT DONGES" means the groupement d'interets economiques Groupement
     Donges which has been established by Total and Antargaz pursuant to the
     Principal Supply Agreement referred to in part 1 of schedule 10;

     "GUARANTORS" means the Parent, Antargaz and each other Group Company which
     becomes a guarantor under this agreement;

     "HALF-YEAR ACCOUNTS" means the semi-annual consolidated management accounts
     of the Group delivered or to be delivered to the Facility Agent under
     clause 19.10(c)(ii)(Financial statements);

     "HEDGING AGREEMENTS" means Derivative Instruments entered into with the
     Hedging Lenders for the purpose of managing or hedging currency and/or
     interest rate risk in relation to the Term Facility;

     "HEDGING LENDER" means a Lender (or an Affiliate of a Lender) or an entity
     that is a party to an existing derivative instrument entered into by the
     Parent in relation to the Existing Term Facility, in its capacity as
     provider of currency and/or interest rate hedging under any Hedging
     Agreement;

     "HIGH YIELD DOCUMENTS" means the High Yield Trust Deed, the High Yield
     Notes and all other documents evidencing the terms of the High Yield Notes
     and any other document or agreement entered into or executed pursuant
     thereto or in connection therewith;

     "HIGH YIELD GUARANTEE" means the subordinated guarantee set out in the High
     Yield Trust Deed and provided by the Parent in favour of the High Yield
     Trustee and the holders of the High Yield Notes pursuant to which the
     Parent guarantees the obligations of Finco under the High Yield Notes;

     "HIGH YIELD NOTES" means the high yield notes issued on 23 July 2002 by
     Finco in an aggregate principal amount of EUR 165,000,000, bearing interest
     at the rate of 10 per cent. per annum payable semi-annually on 15 January
     and 15 July in each year, and maturing on 15 July 2011, the proceeds of

                                       6

<PAGE>

     which have been made available to the Parent through the subscription by
     Finco of the Intra-Group Bonds in accordance with the Intra-Group Bond
     Documents;

     "HIGH YIELD TRUST DEED" means the trust deed and/or other instrument
     pursuant to which the High Yield Notes have been issued;

     "HIGH YIELD TRUSTEE" means the trustee appointed on behalf of the holders
     of the High Yield Notes pursuant to the High Yield Trust Deed;

     "HOLDING COMPANY" means, in relation to any body corporate, any other body
     corporate of which it is a Subsidiary;

     "INTELLECTUAL PROPERTY" means the Intellectual Property Rights owned or
     used by Group Companies throughout the world or the interests of any Group
     Company in any of those Intellectual Property Rights, together with the
     benefit of all agreements entered into or the benefit of which is enjoyed
     by any Group Company relating to the use or exploitation of any of those
     Intellectual Property Rights;

     "INTELLECTUAL PROPERTY RIGHTS" means all patents and patent applications,
     trade and service marks and trade and/or service mark applications (and all
     goodwill associated with any such applications), all brand and trade names,
     all copyrights and rights in the nature of copyright, all design rights,
     all registered designs and applications for registered designs, all trade
     secrets, know-how and all other intellectual property rights;

     "INTERCREDITOR AGREEMENT" means the intercreditor agreement dated on or
     before the first Drawdown Date entered into between, amongst others, each
     of the parties to the Senior Finance Documents, Finco and the Parent;

     "INTEREST PERIOD" means a period by reference to which interest is
     calculated and payable on an Advance or overdue amount;

     "INTRA-GROUP BOND DOCUMENTS" means the Intra-Group Bonds, the terms and
     conditions of the Intra-Group Bonds set out in the Parent's Board
     resolution having decided on their issue and all related and ancillary
     documents;

     "INTRA-GROUP BONDS" means the subordinated bonds issued by the Parent to
     Finco in an aggregate principal amount equal to the aggregate principal
     amount of the High Yield Notes;

     "INVESTMENT AMOUNT" means the aggregate (without double-counting) of the
     following amounts:

     (a)  any amount advanced, lent, contributed or subscribed for, or otherwise
          invested in, a Joint Venture by any Group Company during any Financial
          Year;

     (b)  the market value of any asset transferred (other than by way of a
          transfer otherwise permitted under this agreement) or contributed to a
          Joint Venture by any Group Company during any Financial Year; and

     (c)  the maximum liability under any guarantee given by any Group Company
          during any Financial Year in respect of any Financial Indebtedness
          incurred (whether by way of guarantee or otherwise) by a Joint
          Venture;

     "ISSUING LENDER" means any Lender in its capacity as issuer of a Bank
     Guarantee;

     "JOINT VENTURE" means any joint venture, partnership or similar arrangement
     (including any Groupement d'interets economiques) or any company of which
     the Parent directly or indirectly owns

                                       7

<PAGE>

     some (but not all or substantially all) of the equity share capital (but
     excluding for the avoidance of doubt any Distribution Company);

     "LENDERS" means the Term Lenders and the Revolving Lenders;

     "LENDING OFFICE" means the office through which a Lender is acting for the
     purposes of this agreement, which, subject to clause 3.2 (Lending Office),
     will be the office set opposite the name of that Lender in schedule 1 (or
     in any relevant Transfer Certificate);

     "LIBOR" means, in relation to any Advance or overdue amount in the Optional
     Currency, the rate per annum equal to the offered quotation which appears
     on Telerate Screen page 3740 (or any replacement page on that service) as
     of 11.00 am (London time) on the applicable Rate Fixing Day for the
     Optional Currency for a period comparable to its Interest Period or, if no
     Telerate service is available, on any other service which displays British
     Bankers Association Interest Settlement Rate for the Optional Currency
     which the Facility Agent, after consultation with the Lenders and the
     Parent, selects;

     "MAJORITY LENDERS" means, at any time:

     (a)  Lenders whose aggregate Commitments at that time aggregate more than
          66.66 per cent. of the Total Commitments at that time; or

     (b)  if the Total Commitments have at that time been reduced to zero,
          Lenders whose Commitments aggregated more than 66.66 per cent. of the
          Total Commitments immediately before the relevant reduction;

     "MANDATORY COST" means the percentage rate per annum calculated by the
     Facility Agent in accordance with Schedule 11 (Mandatory Cost Formulae);

     "MARGIN" means:

     (a)  in relation to the Term Facility, 0.80 per cent. per annum, subject to
          clause 7.6 (Margin adjustment);

     (b)  in relation to the Revolving Facility, 0.80 per cent. per annum,
          subject to clause 7.6 (Margin adjustment);

     "MATERIAL ADVERSE EFFECT" means any effect, event or matter:

     (a)  which is materially adverse to:

          (i)  the business, assets or financial condition of the Group (taken
               as a whole); and

          (ii) the ability of any Obligor to perform any of its payment
               obligations under any Senior Finance Document or any of its
               obligations under clause 19.11 (Financial Covenant - Leverage
               Ratio); or

     (b)  which results in any Security Document not providing to the Security
          Agent security over the assets expressed to be secured under that
          Security Document;

     "MATERIAL COMPANY" means:

     (a)  each Obligor (other than the Parent), Finco, each Distribution Company
          which is marked as "Material Company" in part 1 of Schedule 9 and each
          Storage and Logistics Company which is marked as "Material Company" in
          part 2 of Schedule 9; and

                                       8

<PAGE>

     (b)  any other Group Company (other than the Parent) whose profits, sales
          or gross assets exceed five per cent. of the consolidated profits,
          sales or gross assets (as the case of may be) of the Group and, for
          this purpose, the calculation of profits, sales or gross assets shall:

          (i)  be made in accordance with the Approved Accounting Principles;

          (ii) in the case of a company which itself has Subsidiaries, be made
               by using the consolidated profits, consolidated sales or
               consolidated gross assets (as the case may be) of it and its
               Subsidiaries; and

          (iii) be made by reference to:

               (A)  the latest accounts of the relevant Subsidiary used for the
                    purposes of the then latest Annual Accounts; and

               (B)  the then latest Annual Accounts;

     "MATERIAL CONTRACTS" means the Supply Agreements and the agreements set out
     in part 2 of schedule 10;

     "MATURITY DATE" means the last day of an Interest Period for a Revolving
     Advance;

     "NET PROCEEDS" means the aggregate consideration received by any Group
     Company in relation to the disposal of all or any part of the assets of any
     Group Company (including the amount of any inter-company debt of any Group
     Company disposed of which is repaid in connection with that disposal), but
     after deducting all Taxes and other reasonable costs and expenses incurred
     by continuing Group Companies in connection with that disposal;

     "OBLIGORS" means each Borrower and each Guarantor;

     "OPERATING BUDGET" means a budget, in such form and content as the Facility
     Agent shall reasonably require, comprising projected balance sheet,
     projected profit and loss account and projected cashflow statement
     (including details of projected capital expenditure) for the Group and
     forecast of the likely financial performance of the Group for a Financial
     Year, delivered under clause 19.10 (Information and accounting
     undertakings);

     "OPTIONAL CURRENCY" means USD;

     "ORIGINAL AUDITED ACCOUNTS" means the audited consolidated accounts of the
     Group for the Financial Year ending 30 September 2005;

     "ORIGINAL MANAGEMENT ACCOUNTS" means the consolidated management accounts
     of the Group for the Financial Year ending 30 September 2005;

     "PARTICIPATING MEMBER STATES" has the meaning given to it in council
     Regulation EC No. 1103/97 of 17 June, 1997 made under Article 235 of the
     Treaty on European Union;

     "PARTLY OWNED STORAGE AND LOGISTICS COMPANY" means a Storage and Logistics
     Company which is not a wholly-owned Subsidiary (whether directly or
     indirectly) of the Parent;

     "PERMITTED ACQUISITION" means any acquisition (the "PROPOSED ACQUISITION")
     by a Group Company of all the shares in a company or substantially all of
     the assets of a business, provided that:

                                       9

<PAGE>

     (a)  the company or the business which is the subject of the Proposed
          Acquisition carries on a similar or complementary business to that
          carried on by the Group;

     (b)  the chief financial officer (or any board member) of the Parent
          certifies to the Lenders (such certificate to contain calculations in
          reasonable detail) that the ratio of Total Net Debt to EBITDA of the
          Group tested by reference to the Testing Period ending on the Testing
          Date immediately preceding the date on which the Proposed Acquisition
          is completed but calculated including the Proposed Acquisition and
          quantifiable synergies from the Proposed Acquisition (such as
          purchasing synergies) will be no greater than the maximum level for
          such ratio as at that Testing Date as provided under clause 19.11
          (Financial Covenant - Leverage Ratio);

     "POTENTIAL EVENT OF DEFAULT" means an event specified in clause 20.1
     (Events of Default) which, with the giving of notice, the lapse of time or
     the making of any determination would constitute an Event of Default;

     "QUALIFYING LENDER" means, for the purposes of any Drawing by a Borrower, a
     bank or financial institution which:

     (a)  is for the time being participating in that Drawing through a branch,
          agency or Affiliate in the jurisdiction of residence of that Borrower;
          or

     (b)  is resident in a country with which the jurisdiction of residence of
          the Borrower has an appropriate double taxation treaty which, under
          its terms, provides at the date on which that bank or financial
          institution becomes a Lender for full relief from that jurisdiction's
          income tax on that jurisdiction's source interest for an entity such
          as that bank or other financial institution when acting through the
          branch, agency of Affiliate through which it is acting for the
          purposes of that Drawing;

     "RATE FIXING DAY" means, in relation to any period for which EURIBOR or
     LIBOR is to be determined:

     (a)  in the use of EURIBOR, two Target Days before the first day of that
          period, or

     (b)  in the use of LIBOR, two Business Days before the first day of that
          period;

     unless market practice differs in the relevant interbank market for a
     currency, in which case the Rate Fixing Day for that currency will be
     determined by the Facility Agent in accordance with market practice in the
     relevant interbank market;

     "RECEIVABLES" means, in relation to a Borrower, at any time, the unpaid
     portions of the obligations of any trade debtor of that Borrower in respect
     of the supply of goods or services by that Borrower;

     "REFINANCING" means the refinancing of the Existing Indebtedness;

     "REFINANCING CASH COLLATERAL ACCOUNT" means the cash collateral account
     (compte de gage-especes) opened in the name of the Security Agent into
     which the portion of the Term Advance which is not applied on the first
     Drawdown Date as per paragraphs (i) and (ii) of clause 5.2(f) (Content of
     Drawdown Requests) is to be paid. The amount credited on the Refinancing
     Cash Collateral Account shall be released in accordance with the provisions
     of the cash collateral agreement relating thereto either:

     (a)  by direct transfers:

          (i)  on the Business Day immediately preceding the Final Refinancing
               Date: (A) to the Principal Paying Agent (as defined in the High
               Yield Trust Deed), of an amount equal

                                       10

<PAGE>

               to the redemption price payable for the full redemption of the
               High Yield Notes together with all accrued interests, premiums
               and other amounts, (B) to Finco, of the remaining amount (in
               addition to the amount referred to in (A)) payable for the full
               redemption of the Intra-Group Bonds together with all accrued
               interests, premiums and other amounts: and

          (ii) on the Business Day following the date on which the Security
               Agent has received from the Parent evidence of cancellation of
               the High Yield Notes and a pay-off letter in respect of the
               Intra-Group Bonds: to the Parent of the balance of the
               Refinancing Cash Collateral Account; or

     (b)  for application to the prepayment of amounts due by the Parent under
          this Agreement if the mandatory prepayment referred to in clause 11.6
          (Final Refinancing Date) becomes due and payable;

     "REFINANCING COSTS" means all fees, costs and expenses incurred by the
     Group for the purpose of or in connection with the Refinancing;

     "REPAYMENT DATES" means the Term Final Repayment Date and the Revolving
     Facility Repayment Date;

     "REVOLVING ADVANCE" means the principal amount of each advance made or to
     be made under the Revolving Facility, as reduced from time to time by
     repayment or prepayment;

     "REVOLVING COMMITMENT" means:

     (a)  in relation to a Lender identified in schedule 1, the amount set
          opposite its name under the heading "Revolving Commitment" in schedule
          1 and the amount of any other Revolving Commitment transferred to it
          under this agreement; or

     (b)  in relation to any other Lender, the amount of any Revolving
          Commitment transferred to it under this agreement,

     to the extent not cancelled, reduced or transferred by it under this
     agreement;

     "REVOLVING FACILITY" means the revolving credit facility made available by
     the Revolving Lenders under clause 2.1(b) (Facilities);

     "REVOLVING FACILITY REPAYMENT DATE" means 31 March 2011;

     "REVOLVING LENDERS" means:

     (a)  the persons identified in schedule 1 as participating in the Revolving
          Facility; and

     (b)  each Transferee which has become a party to this agreement in relation
          to the Revolving Facility in accordance with clause 26 (Changes to
          parties),

     in each case until its entire participation in the Revolving Facility has
     been assigned or transferred to a Transferee in accordance with clause 26
     (Changes to parties) and all amounts owing to it under the Senior Finance
     Documents in relation to the Revolving Facility have been paid in full;

     "RHONE GAZ" has the meaning given to it in part 2 of schedule 9;

                                       11

<PAGE>

     "SECURITY DOCUMENTS" means each of the security documents specified in
     schedule 2 and all other documents creating, evidencing or granting a
     Security Interest in favour of any Finance Party in relation to the
     obligations of any Obligor under any Senior Finance Document;

     "SECURITY INTEREST" means any mortgage, pledge, lien, right of set-off,
     assignment by way of security, reservation of title, any other security
     interest or any other agreement or arrangement (including a sale and
     repurchase arrangement) having the commercial effect of conferring
     security;

     "SENIOR FINANCE DOCUMENTS" means this agreement, each Security Document,
     the Intercreditor Agreement, each Accession Document, each Transfer
     Certificate, the Fees Letter, the subordination provisions expressed to be
     given for the benefit of the Finance Parties in the High Yield Documents
     and any other document designated as a Senior Finance Document by the
     Parent and the Facility Agent;

     "SENIOR MANAGEMENT TEAM" means Mr. Francois Varagne and Mr. Yves de Gerard;

     "SERVICE CONTRACTS" means the contracts of employment made between Antargaz
     and each member of the Senior Management Team;

     "SIGNING DATE" means the date of this agreement;

     "SOBEGAL" has the meaning given to it in part 2 of schedule 9;

     "STORAGE AND LOGISTICS COMPANIES" means the companies and other corporate
     entities listed in part 2 of schedule 9;

     "SUBSIDIARY" means:

     (a)  an entity of which a company or other entity has from time to time
          direct or indirect control (as defined in article L.233-3 paragraphs I
          and II of the French Commercial Code (as in force at the date of this
          agreement)); or

     (b)  any other company or other entity in respect of which, in accordance
          with the Approved Accounting Principles, the assets, liabilities,
          income and expenses are added to those of the Parent in accordance
          with the full consolidation method for the purposes of the preparation
          of consolidated financial statements of the Parent;

     "SUPPLY AGREEMENTS" means the agreements set out in part 1 of schedule 10;

     "SYNDICATION DATE" means the earlier of:

     (a)  the date the Facility Agent notifies the Parent and the other Finance
          Parties that primary syndication has been completed; and

     (b)  the date falling 90 days after the first Drawdown Date;

     "SYNDICATION MEMORANDUM" has the meaning given to it in clause 3.4(a)
     (Syndication);

     "TARGET DAY" means a day on which the Trans-European Automated Real-Time
     Gross Settlement Express Transfer system is operating;

     "TAXES" means all present and future income and other taxes, levies,
     assessments, imposts, deductions, charges, duties, compulsory loans and
     withholdings (wherever imposed) and any charges in the nature of taxation
     together with interest thereon and penalties and fines in relation thereto,
     if any, and any payments made on or in relation thereof and "TAXATION"
     shall be construed accordingly;

                                       12

<PAGE>

     "TAX CONSOLIDATION AGREEMENT" means the tax consolidation agreement in
     French language called convention d'integration fiscale dated 18 June 2004
     and as amended from time to time, between UGI Bordeaux and its
     Subsidiaries;

     "TERM ADVANCE" means the principal amount of the advance made or to be made
     under the Term Facility, as reduced from time to time by repayment or
     prepayment;

     "TERM COMMITMENT" means:

     (a)  in relation to a Lender identified in schedule 1, the amount set
          opposite its name under the heading "Term Commitment" in schedule 1
          and the amount of any other Term Commitment transferred to it under
          this agreement; or

     (b)  in relation to any other Lender, the amount of any Term Commitment
          transferred to it under this agreement,

     to the extent not cancelled, reduced or transferred by it under this
     agreement;

     "TERM FACILITY" means the term loan facility made available by the Term
     Lenders under clause 2.1(a) (Facilities);

     "TERM FINAL REPAYMENT DATE" means 31 March 2011;

     "TERM LENDERS" means:

     (a)  the persons identified in schedule 1 as participating in the Term
          Facility; and

     (b)  each Transferee which has become a party to this agreement in relation
          to the Term Facility in accordance with clause 26 (Changes to
          parties),

     in each case until its entire participation in the Term Facility has been
     assigned, cancelled or transferred to a Transferee in accordance with
     clause 26 (Changes to parties) and all amounts owing to it under the Senior
     Finance Documents in relation to the Term Facility have been paid in full;

     "TOTAL COMMITMENTS" means the aggregate of all the Commitments at any time;

     "TRANSFER CERTIFICATE" means a certificate substantially in the form set
     out in part 1 of schedule 5;

     "TRANSFEREE" has the meaning given to it in clause 26.2(a) (Assignments and
     transfers by Lenders);

     "TREATY ON EUROPEAN UNION" means the Treaty of Rome signed on 25 March 1957
     as amended by the Single European Act 1986 and the Maastricht Treaty signed
     on 7 February 1992;

     "UGI" means UGI Corporation or any of its Affiliates;

     "UGI BORDEAUX" means UGI Bordeaux Holding, a French societe par actions
     simplifiee, with a share capital of E85,568,435, having its registered
     office at 3 place de Saverne, Immeuble Les Renardieres, 92400 Courbevoie,
     registered under number 452 431 232 RCS Nanterre;

     "UGI BORDEAUX LETTER OF UNDERTAKINGS" means the letter to be executed by
     UGI Bordeaux Holding prior to the first Drawdown Date and addressed to the
     Parent and the Facility Agent, acting on behalf of the Lenders, whereby UGI
     Bordeaux undertakes to make certain payments to the Parent in connection
     with the Tax Consolidation Agreement;

                                       13

<PAGE>

     "USD DOLLAR", "DOLLAR" or "USD" means the lawful currency for the time
     being of the United States of America; and

     "WARRANTY AGREEMENT" means the warranty agreement (convention de garantie)
     dated 16 February 2001, as amended on 22 August 2001, made between Total
     and the Parent in relation to the acquisition of Antargaz by the Parent.

1.2  CONSTRUCTION

     In this agreement, unless a contrary intention appears, a reference to:

     (a)  a document being "IN THE AGREED FORM" means in a form agreed between
          the Parent and the Facility Agent;

     (b)  an "AGREEMENT" includes any legally binding arrangement, concession,
          contract, deed or franchise (in each case whether oral or written);

     (c)  an "AMENDMENT" includes any amendment, supplement, variation,
          novation, modification, replacement or restatement and "amend",
          "AMENDING" and "AMENDED" shall be construed accordingly;

     (d)  "ASSETS" includes property, business, undertaking and rights of every
          kind, present, future and contingent (including uncalled share
          capital) and every kind of interest in an asset;

     (e)  a "CONSENT" includes an authorisation, approval, exemption, licence,
          order, permission or waiver;

     (f)  a "FILING" includes any filing, registration, recording or notice;

     (g)  a "GUARANTEE" includes:

          (i)  an indemnity;

          (ii) a cautionnement simple, a cautionnement solidaire and a garantie
               autonome; and

          (iii) any other obligation (whatever called) of any person:

               (A)  to pay, purchase, provide funds (whether by the advance of
                    money, the purchase of or subscription for shares or other
                    investments, the purchase of assets or services, the making
                    of payments under an agreement or otherwise) for the payment
                    of, indemnify against the consequences of default in the
                    payment of, or otherwise be responsible for, any
                    indebtedness of any other person; or

               (B)  to be responsible for the performance of any obligations by
                    or the solvency of any other person,

          and "GUARANTEED" and "GUARANTOR" shall be construed accordingly;

     (h)  "INCLUDING" means including without limitation and "INCLUDES" and
          "INCLUDED" shall be construed accordingly;

     (i)  "INDEBTEDNESS" includes any obligation (whether incurred as principal,
          guarantor or as surety) for the payment or repayment of money, whether
          present or future, actual or contingent;

                                       14

<PAGE>

     (j)  "LOSSES" includes losses, actions, damages, claims, proceedings,
          costs, demands, expenses (including fees) and liabilities and "LOSS"
          shall be construed accordingly;

     (k)  a "MONTH" means a period starting on one day in a calendar month and
          ending on the numerically corresponding day in the next calendar
          month, except that:

          (i)  if any such period would otherwise end on a day which is not a
               Business Day, it shall end on the next Business Day in the same
               calendar month or, if none, on the preceding Business Day; and

          (ii) if a period starts on the last Business Day in a calendar month,
               or if there is no numerically corresponding day in the month in
               which that period ends, that period shall end on the last
               Business Day in that later month,

          and references to "MONTHS" shall be construed accordingly;

     (l)  a "PERSON" includes any person, individual, firm, company,
          corporation, government, state or agency of a state or any undertaking
          or other association (whether or not having separate legal
          personality) or any two or more of the foregoing;

     (m)  a "REGULATION" includes any regulation, rule, official directive,
          request or guideline (whether or not having the force of law) of any
          governmental body, agency, department or regulatory, self-regulatory
          or other authority or organisation; and

     (n)  the "WINDING-UP" of any person includes its dissolution and/or
          termination and/or any equivalent or analogous proceedings under the
          law of any jurisdiction in which that person is incorporated,
          registered, established or carries on business or to which that person
          is subject.

1.3  OTHER REFERENCES

     In this agreement, unless a contrary intention appears:

     (a)  a reference to any person is, where relevant, deemed to be a reference
          to or to include, as appropriate, that person's successors and
          permitted assignees or transferees;

     (b)  references to clauses and schedules are references to, respectively,
          clauses of and schedules to this agreement and references to this
          agreement include its schedules;

     (c)  a reference to (or to any specified provision of) any agreement or
          document (including the Senior Finance Documents) is to be construed
          as a reference to that agreement or document (or that provision) as it
          may be amended from time to time, but excluding for this purpose any
          amendment which is contrary to any provision of any Senior Finance
          Document;

     (d)  a reference to a statute, statutory instrument or accounting standard
          or any provision thereof is to be construed as a reference to that
          statute, statutory instrument or accounting standard or such provision
          thereof, as it may be amended or re-enacted from time to time;

     (e)  a time of day is a reference to Paris time;

     (f)  the index to and the headings in this agreement are inserted for
          convenience only and are to be ignored in construing this agreement;
          and

     (g)  words importing the plural shall include the singular and vice versa.

                                       15

<PAGE>

1.4  CASH COVER

     (a)  If a Borrower is obliged under this agreement to repay or prepay or
          provide cash cover in relation to any contingent liability under a
          Bank Guarantee, that Borrower shall, on the date for that repayment,
          prepayment or provision of cash cover:

          (i)  by agreement with the relevant Beneficiary, reduce that
               contingent liability by the relevant amount; or

          (ii) pay the relevant amount to the credit of a Cash Collateral
               Account.

     (b)  Any amounts standing to the credit of any Cash Collateral Account
          shall bear interest at the rate normally offered to corporate
          depositors on similar deposits by the Finance Party with which that
          account is held.

1.5  CURRENCY CONVERSION

     For the purposes of the Senior Finance Documents (other than clauses 19.11
     (Financial Covenant - Leverage Ratio) to 19.14 (Calculation adjustments)
     (inclusive)), if a Euro amount needs to be determined, any amount which is
     denominated in a currency other than Euro will be converted into Euro using
     the Euro Spot Rate on that date.

2.   THE FACILITIES

2.1  FACILITIES

     Subject to the other provisions of this agreement:

     (a)  the Term Lenders agree to make available to the Parent, a term loan
          facility in a maximum aggregate principal amount not exceeding EUR
          380,000,000, which shall be available by way of a single Term Advance
          in Euro;

     (b)  the Revolving Lenders agree to make available to the Borrowers a
          revolving credit facility in a maximum aggregate principal amount not
          exceeding EUR 50,000,000 (or its equivalent in the Optional Currency),
          which shall be available by way of Revolving Advances and Bank
          Guarantees in Euro and/or the Optional Currency).

2.2  PURPOSE

     (a)  The proceeds of the Term Advance shall be applied in or towards
          discharging existing indebtedness of the Parent under:

          (i)  the Existing Term Facility; and

          (ii) the Intra-Group Bonds (so as to allow Finco to discharge its
               existing indebtedness under the High Yield Notes); and

          (iii) other general corporate purposes (including payment of the
               Refinancing Costs).

     (b)  The proceeds of the Revolving Advances and each Bank Guarantee shall
          be used for the working capital requirements and other general
          corporate purposes of Group Companies arising after the first Drawdown
          Date (excluding any payment of the purchase price for the assets
          acquired in accordance with clause 19.4 (Acquisition and investment
          undertakings)), provided however that a Revolving Advance may be drawn
          down by the Parent or Antargaz (as the case may be) on the first
          Drawdown Date for the purpose of discharging existing

                                       16

<PAGE>

          indebtedness of the Parent or Antargaz (as the case may be) under the
          Existing Revolving Facility.

     (c)  No Finance Party shall be obliged to enquire about, or be responsible
          for, the use or application of amounts borrowed under this agreement.

2.3  PARENT AS OBLIGORS' AGENT

     Each Obligor irrevocably appoints the Parent as its agent for the purpose
     of:

     (a)  executing and delivering on its behalf any Accession Document and any
          other agreement or document capable of being entered into by that
          Obligor under or in connection with the Senior Finance Documents;

     (b)  giving and receiving any notice or instruction under or in connection
          with any Senior Finance Document (including any Drawdown Request); and

     (c)  agreeing and executing all consents, waivers, agreements and
          amendments (however fundamental and notwithstanding any increase in
          obligations of or other effect on an Obligor) entered into in
          connection with the Senior Finance Documents (including confirmation
          of continuation of guarantee obligations in connection with any
          amendment or consent in relation to the Facilities).

     The appointment of the Parent as the agent of an Obligor for any purpose
     set out above does not prevent that Obligor from taking the relevant action
     in its own name.

3.   PARTICIPATION OF LENDERS

3.1  BASIS OF PARTICIPATION

     Subject to the other provisions of this agreement:

     (a)  each relevant Lender will participate in the Term Advance in the
          proportion which its Term Commitment bears to the total Commitments in
          relation to the Term Facility as at the relevant Drawdown Date; and

     (b)  each Revolving Lender will participate in each Drawing of the
          Revolving Facility (in the case of a Bank Guarantee by way of
          indemnity in favour of the Issuing Lender under clause 6.4(b)
          (Indemnities)) in the proportion which its Revolving Commitment bears
          to the total Commitments in relation to the Revolving Facility as at
          the relevant Drawdown Date.

3.2  LENDING OFFICE

     (a)  Each Lender will participate in each Drawing through its Lending
          Office.

     (b)  If any Lender changes its Lending Office for the purpose of the
          Facilities, that Lender will, as soon as reasonably practicable after
          that change, notify it to the Facility Agent and the Parent and, until
          it does so, the Agents and the Parent will be entitled to assume that
          no such change has taken place.

     (c)  Any Lender may nominate a different Lending Office for the purposes of
          making a particular Drawing or a particular type of Drawing to an
          Obligor in which event such Lending Office shall be, for the purposes
          of this agreement, its Lending Office for that Drawing or type of
          Drawing but not otherwise.

                                       17

<PAGE>

3.3  RIGHTS AND OBLIGATIONS OF FINANCE PARTIES

     (a)  The rights and obligations of each of the Finance Parties under the
          Senior Finance Documents are several (conjointes mais non solidaires).
          The failure by a Finance Party to comply with its obligations under
          any Senior Finance Document shall not:

          (i)  result in any other Finance Party incurring any liability; or

          (ii) relieve any Obligor or any other Finance Party from its
               obligations under the Senior Finance Documents.

     (b)  Subject to the other provisions of the Senior Finance Documents, each
          Finance Party has the right to protect and enforce its rights arising
          out of the Senior Finance Documents and it will not be necessary for
          any other Finance Party to be joined as an additional party in any
          proceedings brought for the purpose of protecting or enforcing those
          rights.

3.4  SYNDICATION

     The Facilities are being made available by the Lenders with the intention
     (but not the obligation) that the Facility Agent should co-ordinate primary
     syndication. Each Obligor undertakes to assist and co-operate with the
     Facility Agent in syndication in such a manner and to such an extent as the
     Facility Agent may reasonably request, including by:

     (a)  the preparation, review and approval of a syndication information
          memorandum in relation to the Group and the business, trading,
          prospects, financial condition, assets and liabilities of the Group as
          a whole and of each Group Company;

     (b)  participating in presentations to potential Lenders concerning the
          activities of the Group as a whole and of each Group Company; and

     (c)  selecting Interest Periods in relation to Advances no longer than one
          month in relation to all Advances made on or before the date falling
          90 days after the first Drawdown Date.

4.   CONDITIONS PRECEDENT

4.1  INITIAL CONDITIONS PRECEDENT

     (a)  The Lenders shall not be under any obligation to make the first
          Drawing available to any Borrower unless:

          (i)  the Facility Agent has received all of the documents and
               information specified in schedule 3 (Documentary Conditions
               Precedent) in form and substance satisfactory to it (acting
               reasonably) (or the Facility Agent is satisfied that, immediately
               after the making of the Term Advance to be made on the first
               Drawdown Date, it will receive those documents and that
               information in form and substance satisfactory to it (acting
               reasonably)); and

          (ii) the relevant funds are available in the relevant money markets to
               make the relevant Drawing available.

     (b)  The Facility Agent shall deliver to the Parent on the Signing Date a
          letter containing the list of the documents and information specified
          in schedule 3 (Documentary Conditions Precedent) which it has received
          in form and substance satisfactory to it on or before the Signing
          Date.

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<PAGE>

4.2  FAILURE TO SATISFY INITIAL CONDITIONS PRECEDENT

     Except as the Facility Agent (acting on the instructions of all the
     Lenders) agrees otherwise, if the conditions referred to in clause 4.1
     (Initial conditions precedent) have not been fulfilled or waived in writing
     on or before the last day of the Availability Period for the Term Facility:

     (a)  all the Commitments will automatically be cancelled; and

     (b)  the Lenders will cease to have any obligation to make any Drawing
          available.

4.3  ADDITIONAL CONDITIONS PRECEDENT TO DRAWINGS

     Subject to clause 4.4 (Rollover Advances) and subject (in respect of the
     first Drawing) to clause 20.3 (Certain Funds Period), the obligations of
     the Lenders to make any Drawing available are subject to the conditions
     precedent that, on both the date of the relevant Drawdown Request and the
     relevant Drawdown Date:

     (a)  no Default has occurred and is continuing or will occur as a result of
          making that Drawing;

     (b)  the representations and warranties set out in clause 18
          (Representations and Warranties) which are made or repeated on those
          dates are true and accurate in all material respects by reference to
          the facts and circumstances then subsisting and will remain true and
          accurate in all material respects immediately after that Drawing is
          made; and

     (c)  the relevant funds are available in the relevant money markets to make
          the relevant Drawing available.

4.4  ROLLOVER ADVANCES

     If, in relation to a Revolving Advance (the "ROLLOVER ADVANCE"):

     (a)  either of the conditions specified in clause 4.3(a) or (b) (Additional
          conditions precedent to Drawings) is not satisfied on the Drawdown
          Date for the new Revolving Advance;

     (b)  the amount of the Rollover Advance does not exceed the amount of an
          existing Revolving Advance (the "EXISTING REVOLVING ADVANCE") which is
          due to be repaid on the Drawdown Date of the new Revolving Advance;
          and

     (c)  the proceeds of the Rollover Advance are applied in repaying the
          existing Revolving Advance,

     then, unless any notice is then outstanding under clause 20.2 (Cancellation
     and repayment), the Lenders may not refuse to advance the Rollover Advance
     by reason of the conditions specified in clause 4.3(a) or (b) (Additional
     conditions precedent to Drawings) not being satisfied.

5.   DRAWDOWN PROCEDURES

5.1  DELIVERY OF DRAWDOWN REQUESTS

     In order to utilise a Facility, the relevant Borrower must deliver to the
     Facility Agent a duly completed Drawdown Request:

     (a)  in the case of any Advance to be borrowed on the first Drawdown Date,
          not later than 10:00 am on that date; and

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<PAGE>

     (b)  in the case of any other Advance, not later than 10:00 am three
          Business Days before the proposed Drawdown Date.

5.2  CONTENT OF DRAWDOWN REQUESTS

     Each Drawdown Request delivered to the Facility Agent must be in the
     applicable form set out in schedule 4 and must specify (or attach, as
     appropriate) the following:

     (a)  which Facility is to be utilised;

     (b)  the identity of the Borrower;

     (c)  the proposed Drawdown Date, which must be a Business Day during the
          relevant Availability Period;

     (d)  if the Drawing is by way of Advance, the amount and currency of that
          Advance, which must:

          (i)  in the case of a Term Advance, be an amount in Euro equal to the
               undrawn Term Commitments;

          (ii) in the case of a Revolving Advance, be in an amount equal to or
               less than (and in the case of a Revolving Advance in the Optional
               Currency have a Euro Equivalent equal to or less than) the
               undrawn portion of the total Commitments in relation to the
               Revolving Facility and, if less (save for a Revolving Advance
               made in accordance with clause 6.9 (Revolving Advance to fund
               demands under Bank Guarantees)):

               (A)  in the case of a Revolving Advance in Euro, a minimum of EUR
                    2,500,000 and an integral multiple of EUR 500,000; and

               (B)  in the case of a Revolving Advance in the Optional Currency,
                    an amount in the Optional Currency having an Euro Equivalent
                    of not less than EUR 2,500,000 or, if higher, being the Euro
                    Equivalent of an integral multiple of EUR 500,000; or

     (e)  if the Drawing is by way of an Advance, the duration of the Interest
          Period applicable to the Revolving Advance or the first Interest
          Period applicable to the relevant Term Advance (as the case may be),
          which must comply with clause 8 (Selection of Interest Periods);

     (f)  if the Drawing is by way of an Advance, details of the payee and the
          account to which the proceeds of the Drawing are to be paid, provided
          that the proceeds of the Term Advance will be paid as follows:

          (i)  for the portion of the Term Advance to be used for the
               refinancing of the Existing Term Facility, by direct payment to
               the agent under the Existing Facilities;

          (ii) for the portion of the Term Advance to be used for the payment of
               fees and expenses incurred by the Parent in connection with the
               Senior Finance Documents, by transfer to the Parent's account
               specified in the Drawdown Request;

          (iii) for the balance the Term Advance, by transfer to the Refinancing
               Cash Collateral Account.

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<PAGE>

     (g)  if the Drawing is by way of a Bank Guarantee:

          (i)  the amount and currency of that Bank Guarantee, which must be in
               an amount equal to or less than (and in the case of a Bank
               Guarantee in the Optional Currency have a Euro Equivalent equal
               to or less than) the undrawn portion of the total Commitments in
               relation to the Revolving Facility and, if less:

               (A)  in the case of a Bank Guarantee denominated in Euro, a
                    minimum of EUR 100,000; or

               (B)  in case of a Bank Guarantee denominated in the Optional
                    Currency, an amount in the Optional Currency having an Euro
                    Equivalent of not less than EUR 100,000;

          (ii) the Beneficiary of that Bank Guarantee;

          (iii) the expiry date of that Bank Guarantee, which must be a date on
               or before the Revolving Facility Repayment Date;

          (iv) the obligation to which the issue of that Bank Guarantee relates;
               and

          (v)  the execution copy of the Bank Guarantee to be issued (which must
               be in a form previously agreed by the Parent, the Facility Agent
               and the relevant Issuing Lender).

5.3  REQUESTS IRREVOCABLE

     A Drawdown Request once given may not be withdrawn or revoked.

5.4  NUMBER AND FREQUENCY OF REQUESTS

     (a)  No more than one Term Advance in respect of the Term Facility may be
          borrowed.

     (b)  No more than one Drawing of the Revolving Facility may be requested in
          any period of five consecutive Business Days and not more than three
          Drawings of the Revolving Facility may be borrowed in any calendar
          month. No more than eight Revolving Advances (excluding any Revolving
          Advance made in accordance with clause 6.9 (Revolving Advance to fund
          demands under the Bank Guarantees) and fifteen Bank Guarantees (or, in
          each case, any higher number agreed by the Facility Agent) may be
          outstanding at any one time.

     (c)  No Revolving Advance may be borrowed unless the Term Advance has been,
          or is being, advanced in full on or before the proposed Drawdown Date
          of the relevant Revolving Advance.

5.5  NOTICE TO THE LENDERS OF A PROPOSED DRAWING

     The Facility Agent will promptly give each Lender details of each Drawdown
     Request received and of the amount of that Lender's participation in the
     Drawing referred to in that Drawdown Request.

5.6  MAKING OF ADVANCES

     Subject to the provisions of this agreement, each Lender will make
     available to the Facility Agent its participation in the relevant Advance
     on the relevant Drawdown Date.

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5.7  ISSUE OF BANK GUARANTEES

     (a)  Subject to the provisions of this agreement, the Issuing Lender will
          issue the relevant Bank Guarantee requested by delivery of that Bank
          Guarantee to (or to the order of) the relevant Beneficiary on the
          relevant Drawdown Date.

     (b)  No Bank Guarantee shall be issued for the account of a Group Company
          which is not a Borrower.

     (c)  Any Lender which agrees with the Parent and the Facility Agent that it
          will issue Bank Guarantees will be the Issuing Lender. The Facility
          Agent shall notify the Lenders of any such agreement.

5.8  EXPIRY

     No Drawing of the Revolving Facility will be permitted which gives rise to
     an actual or contingent liability of the relevant Borrower to any Lender
     which may mature after or otherwise extend beyond the Revolving Facility
     Repayment Date.

5.9  AUTOMATIC CANCELLATION

     Any part of the Term Commitments undrawn on the last day of the
     Availability Period for the Term Facility will be automatically cancelled.

5.10 REVOLVING FACILITY COMMITMENT

     On the date on which any Drawing is requested (whether or not in the
     Optional Currency) under the Revolving Facility, the Facility Agent shall
     determine whether the aggregate of:

     (a)  the amount in Euro of that Drawing or, if denominated in the Optional
          Currency, the Euro Equivalent (determined as at or about 11:00 am
          three Business Days prior to the relevant Drawing Date) of that
          Drawing; and

     (b)  the Euro Equivalent (determined as at or about 11:00 am three Business
          Days prior to the relevant Drawing Date) of each existing Revolving
          Advance denominated in the Optional Currency which will be outstanding
          on the relevant Drawing Date; and

     (c)  each existing Revolving Advance denominated in Euro which will be
          outstanding on the relevant Drawing Date; and

     (d)  the Euro Equivalent (determined as at or about 11:00 am two Business
          Days prior to the relevant Drawing Date) of the total Contingent
          Liability of all the Lenders under Bank Guarantees already issued and
          denominated in the Optional Currency which will be outstanding on the
          relevant Drawing Date; and

     (e)  the total Contingent Liability of all the Lenders under Banks
          Guarantees already issued and denominated in Euro which will be
          outstanding on the relevant Drawing Date,

     exceeds the total Commitments in relation to the Revolving Facility. In the
     event that the total Commitments in relation to the Revolving Facility are
     so exceeded the requested Drawing under the Revolving Facility shall be
     reduced by the amount by which the total Commitments in relation to the
     Revolving Facility are so exceeded.

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<PAGE>

5.11 OPTIONAL CURRENCY AVAILABILITY

     If a Borrower requests a Drawing denominated in the Optional Currency under
     the Revolving Facility and, before 10:00 am on the Rate Fixing Day for that
     Drawing, the Facility Agent receives notice from a Lender (an "AFFECTED
     LENDER") that:

     (a)  the Optional Currency is not readily available to it in the amount
          required; or

     (b)  compliance with its obligation to participate in a Drawing in the
          Optional Currency would contravene a law or regulation applicable to
          that Affected Lender, then:

          (i)  the Facility Agent will notify the relevant Borrower to that
               effect by 12.00 am (noon) on that Rate Fixing Day;

          (ii) following any such notification the relevant Borrower may notify
               the Facility Agent by 2.00 pm on that Rate Fixing Day that it no
               longer requires that Drawing to be made;

          (iii) if the Facility Agent does not receive notification under clause
               5.11(b)(ii), the relevant Borrower and the Facility Agent shall
               agree to adjust the amount of the Drawing to exclude the
               participation of the Affected Lender; and

          (iv) in the case of a Drawing by way of Advance, the Affected Lender
               shall make a separate Revolving Advance in Euro in an amount
               equal to the Euro Equivalent of the Affected Lender's proposed
               participation in the Advance requested.

5.12 OPTIONAL CURRENCY FLUCTUATIONS

     (a)  The Facility Agent shall, if so requested by the Majority Lenders:

          (i)  calculate the aggregate Euro Equivalent of all outstanding
               Drawings under the Revolving Facility as at the end of the
               quarter in which that request was made (or on any other date
               reasonably requested by the Majority Lenders); and

          (ii) if the amount calculated under clause 5.12(a)(i) exceeds the
               aggregate Revolving Commitments by more than five per cent.,
               notify the Parent to that effect.

     (b)  Within five Business Days of any notification under clause
          5.12(a)(ii), the Parent shall prepay (or procure the prepayment of)
          Drawings under the Revolving Facility so as to reduce the aggregate
          Euro Equivalent of all outstandings under the Revolving Facility to an
          amount not exceeding the aggregate Revolving Commitments.

6.   DEMANDS UNDER BANK GUARANTEES

6.1  DEMANDS

     Each Issuing Lender shall, as soon as reasonably practicable after receipt
     by it of any demand under any Bank Guarantee, notify the Facility Agent of
     the amount of that demand and the Facility Agent, as soon as reasonably
     practicable after receipt of any such notice, shall notify the Parent, the
     Borrower for whose account that Bank Guarantee was issued (the "ACCOUNT
     PARTY") and the Revolving Lenders.

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<PAGE>

6.2  PAYMENTS

     (a)  The Account Party shall, immediately after receipt of any notice from
          the Facility Agent under clause 6.1 (Demands), pay to the Facility
          Agent (for the account of the relevant Issuing Lender) the amount
          demanded from that Issuing Lender (as notified to the Facility Agent
          under clause 6.1 (Demands)), less any amount standing to the credit of
          any Cash Collateral Account which has been paid to the credit of that
          Cash Collateral Account to provide cash cover in relation to the Bank
          Guarantee under which the relevant Issuing Lender has received demand
          (a "RELEVANT CREDIT").

     (b)  The Facility Agent shall pay to the relevant Issuing Lender any amount
          received by it from the Account Party under clause 6.2(a) together
          with any Relevant Credit.

     (c)  The Facility Agent is irrevocably authorised by the Account Party,
          following a demand under any Bank Guarantee, to apply any Relevant
          Credit in satisfaction of the Account Party's obligations in relation
          to that Bank Guarantee.

6.3  AUTHORITY TO PAY

     The Account Party irrevocably authorises each Issuing Lender to pay
     (without investigation or confirmation by it) any demand which appears on
     its face to be validly made under any Bank Guarantee issued by that Issuing
     Lender and agrees that, as between itself, the relevant Issuing Lender and
     the Lenders, that demand (in the absence of manifest error) shall be
     conclusive evidence that the demand has been properly made.

6.4  INDEMNITIES

     (a)  The Account Party irrevocably and unconditionally agrees to indemnify
          each Issuing Lender on demand against all losses which may be suffered
          or incurred by that Issuing Lender under or in connection with any
          Bank Guarantee.

     (b)  Without prejudice to the Account Party's obligations under clause
          6.4(a), each Revolving Lender irrevocably, unconditionally and
          severally agrees to pay to each Issuing Lender on demand an amount
          equal to its proportion of the amount which that Issuing Lender has
          paid under the relevant Bank Guarantee less the amount recovered from
          the Account Party under clause 6.4(a). No Revolving Lender is liable
          under this clause 6.4(b) for an amount greater than its proportion of
          the Contingent Liability under the relevant Bank Guarantee (unless the
          relevant Revolving Lender fails to pay the relevant Issuing Lender on
          demand, in which event it will compensate that Issuing Lender for all
          losses it suffers as a result of that failure).

     (c)  The Account Party irrevocably and unconditionally agrees to pay to
          each Revolving Lender on demand an amount equal to all payments by
          that Revolving Lender under clause 6.4(b) and to indemnify that
          Revolving Lender against all other losses which may be suffered or
          incurred by that Revolving Lender under or in connection with its
          obligations under clause 6.4(b).

6.5  INTEREST

     The Account Party shall pay interest on all amounts paid by an Issuing
     Lender under or in connection with any Bank Guarantee or by any Revolving
     Lender under clause 6.4(b) (Indemnities) from (and including) the date of
     payment by that Issuing Lender or that Revolving Lender up to (and
     including) the date of payment, calculated and payable in accordance with
     clause 7.4 (Default interest).

6.6  CONTINUING INDEMNITY

     (a)  The indemnities contained in clause 6.4 (Indemnities) (the
          "INDEMNITIES"):

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<PAGE>

          (i)  will remain in full force and effect until all the amounts to
               which the Indemnities are expressed to relate have been paid in
               full; and

          (ii) are in addition to and are not in any way prejudiced by any other
               security now or subsequently held by any person.

     (b)  Any settlement or discharge of any claim under any of the Indemnities
          shall be conditional on no payment made under the Indemnities being
          avoided or set aside or ordered to be refunded by virtue of any
          provision of any enactment relating to bankruptcy, insolvency or
          liquidation.

6.7  NO DISCHARGE

     The Indemnities shall not be discharged, diminished or in any way adversely
     affected as a result of any of the following (whether or not known to any
     Obligor or Finance Party):

     (a)  any time or waiver given to, or composition made with, any Obligor or
          any other person;

     (b)  any amendment to, or replacement of, any Senior Finance Document
          (however fundamental), or any other agreement or security;

     (c)  the taking, variation, compromise, renewal, release or refusal or
          neglect to perfect or enforce any right, remedies or security against
          any Obligor or any other person;

     (d)  any purported obligation of any Obligor or any other person to any
          Finance Party (or any security for that obligation) becoming wholly or
          partly void, invalid, illegal or unenforceable for any reason;

     (e)  any incapacity, lack of power, authority or legal personality or any
          change in the constitution of, or any amalgamation, consolidation or
          reconstruction of, any Obligor, Finance Party or other person;

     (f)  any Obligor or other person becoming insolvent going into receivership
          or liquidation, having an administrator appointed or becoming subject
          to any other procedure for the suspension of payments to or protection
          of creditors; or

     (g)  any other act, omission, circumstance, matter or thing which, but for
          this provision, might operate to impair the Indemnities.

6.8  NO SUBROGATION

     No Account Party shall, by virtue of any payment made under the
     Indemnities, claim any right of subrogation, contribution or indemnity
     against any person for so long as any amount remains payable or capable of
     becoming payable under any Senior Finance Document.

6.9  REVOLVING ADVANCE TO FUND DEMANDS UNDER BANK GUARANTEES

     (a)  Without prejudice to the relevant obligations of the Account Party
          under clause 6.2 (Payments), forthwith on the making of a demand
          pursuant to a Bank Guarantee (other than a demand made after the end
          of the Availability Period for the Revolving Facility), unless
          otherwise agreed between the Facility Agent and the Parent, the
          liability of the Account Party to indemnify the Issuing Lender in
          respect of that demand shall be deemed to have been fulfilled on the
          date of satisfaction by the Issuing Lender of that demand and the
          Account Party shall be deemed to have drawn a Revolving Advance in the
          currency of the relevant Bank Guarantee in the amount of that
          resulting liability so paid by the Issuing Lender, the

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<PAGE>

          proceeds of which shall be deemed forthwith to have been applied in
          discharge of that liability. The participation of each Revolving
          Lender in any such Advance shall be in the amount equal to the amount
          of its participation in the relevant Bank Guarantee by way of
          indemnity under clause 6.4(b) (Indemnities).

     (b)  The Interest Period relating to any Revolving Advance deemed made
          pursuant to clause 6.9(a) shall be deemed to begin on (and the
          Drawdown Date for that Revolving Advance (for the purpose of
          determining the applicable EURIBOR shall be deemed to be)) the date on
          which the relevant Issuing Lender makes payment under the relevant
          Bank Guarantee and that Interest Period shall be one month (or any
          other period which the Facility Agent and the Parent agree). All
          provisions of this agreement relating to Revolving Advances (as
          applicable) (including the provisions of clause 4 (Conditions
          precedent) and all provisions relating to the payment of interest and
          the repayment and prepayment of principal in respect of Revolving
          Advances) shall apply to any such Revolving Advance.

7.   INTEREST

7.1  RATE

     The rate of interest on each Advance for each of its Interest Periods is
     the rate per annum determined by the Facility Agent to be the aggregate of:

     (a)  the Margin for that Advance;

     (b)  EURIBOR or LIBOR, as the case may be, for that Advance during that
          Interest Period; and

     (c)  any applicable Mandatory Cost.

7.2  CALCULATION

     Interest will accrue daily from and including the first day of an Interest
     Period and be calculated on the basis of a 360 day year.

7.3  PAYMENT

     Each Borrower will pay interest accrued on each Advance made to it to the
     Facility Agent (for the account of the Lenders) in arrear on the last day
     of each Interest Period for that Advance and also, where that Interest
     Period is longer than six months, on the last day of each consecutive
     period of six months from (and including) the first day of that Interest
     Period.

7.4  DEFAULT INTEREST

     If an Obligor fails to pay any amount under any Senior Finance Document on
     its due date (including any amount payable under this clause 7.4) (an
     "OVERDUE AMOUNT"), that Obligor will pay default interest on that overdue
     amount from its due date to the date of actual payment (both before and
     after judgement) at a rate (the "DEFAULT RATE") determined by the Facility
     Agent to be one per cent. per annum above:

     (a)  where the overdue amount is principal which has become due and payable
          before the expiry of the relevant Interest Period, the rate applicable
          to that principal immediately before the date it fell due (but only
          for the period from that due date to the end of the relevant Interest
          Period); or

     (b)  in any other case (including principal falling within clause 7.4(a)
          once the relevant Interest Period has expired), the rate which would
          be payable if the overdue amount was an Advance

                                       26

<PAGE>

          made for a period equal to the period of non-payment divided into
          successive Interest Periods of a duration selected by the Facility
          Agent (each a "DEFAULT INTEREST PERIOD").

     For the purposes of determining the rate of interest on an overdue amount
     under this clause 7.4, the Margin will be:

     (a)  if that amount comprises principal or interest or any other amount due
          in relation to a Facility, the Margin relating to that Facility; or

     (b)  if that amount is not properly attributable to a Facility, the Margin
          under the Term Facility.

7.5  COMPOUNDING

     Default interest will be payable on demand by the Facility Agent and will
     be compounded in accordance with article 1154 of the French Civil Code.

7.6  MARGIN ADJUSTMENT

     (a)  Subject to clauses 7.6(b) to (d) (inclusive), if at any time as from
          the date of delivery to the Facility Agent of the Annual Management
          Accounts for the Financial Year ending 30 September 2006, the Annual
          Management Accounts or the Half-Year Accounts (as the case may be) as
          at the most recent Accounting Half-Year end date show that, for the 12
          month period ending on such date, the ratio of Total Net Debt at the
          end of such period to EBITDA for such period is:

          (i)  equal to or greater than 3.5:1, the Margin applicable to the Term
               Facility and the Revolving Facility will be 1.15 per cent. per
               annum;

          (ii) less than 3.5:1 but equal to or greater than 3.0:1, the Margin
               applicable to the Term Facility and the Revolving Facility will
               be 0.95 per cent. per annum;

          (iii) less than 3.0:1 but equal to or greater than 2.5:1, the Margin
               applicable to the Term Facility and the Revolving Facility will
               be 0.80 per cent. per annum;

          (iv) less than 2.5:1, the Margin applicable to the Term Facility and
               the Revolving Facility will be 0.70 per cent. per annum.

     (b)  Any change in the Margin under clause 7.6(a) shall take effect during
          (but only during) the period from (and including) the date on which
          the Facility Agent has received the Annual Management Accounts or
          Half-Year Accounts, as the case may be (the "ACCOUNTS") (together with
          the corresponding compliance certificates in accordance with clause
          19.10(d) (Compliance certificates)) until (but excluding) the date (a
          "READJUSTMENT DATE") which is the date on which the Facility Agent
          receives the Accounts as at the end date of the immediately following
          Accounting Half Year (together with the corresponding compliance
          certificate in accordance with clause 19.10(d) (Compliance
          certificates)). On each Readjustment Date, the Margin applicable to
          the Term Facility and the Revolving Facility shall be determined in
          accordance with paragraph (a) of this clause 7.6.

     (c)  No decrease in the Margin shall take effect if an Event of Default is
          outstanding. If an Event of Default occurs, the Margin applicable to
          the Term Facility and the Revolving Facility shall immediately return
          to (if it is not already) 1.15 per cent. per annum, until the time
          when no Event of Default is outstanding (when the Margin will again be
          determined in accordance with this clause 7.6).

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<PAGE>

     (d)  If:

          (i)  the Margin is:

               (A)  decreased in accordance with this clause 7.6 by reference to
                    Annual Management Accounts or Half-Year Accounts; or

               (B)  Annual Management Accounts or Half-Year Accounts indicate
                    that no increase in the Margin is required; and

          (ii) subsequent Annual Accounts show that the Annual Management
               Accounts or Half-Year Accounts were erroneous or incomplete and
               as a result the margin should have been higher than the level
               shown by those Annual Management Accounts or Half-Year Accounts,

          the Parent shall, promptly following demand by the Facility Agent, pay
          (or procure that the Borrowers pay) to the Facility Agent for the
          account of the Lenders the additional amount which would have been
          payable by the Borrowers if the Margin had been increased to the
          correct level during the relevant periods as shown by the relevant
          Annual Accounts. The Facility Agent's determination of any adjustments
          payable under this clause 7.6(d) shall, except in the case of manifest
          error, be conclusive.

7.7  NOTIFICATION

     The Facility Agent will notify the Parent and the Lenders of each
     determination of an interest rate (including a default rate) and each
     selection of a Default Interest Period under this clause 7 as soon as
     reasonably practicable after any such determination or selection is made.

7.8  EFFECTIVE GLOBAL RATE

     To comply with the provisions of articles L.313-4 to L.313-5 of the French
     Monetary and Financial Code (Code Monetaire et Financier), the Parent and
     the Lenders declare that the effective global rate for each of the
     Facilities cannot be calculated for the total duration of this agreement,
     primarily because of the floating rate of interest applicable to the
     Facilities and the relevant Borrower's selection of the duration of each
     Interest Period. However an example of the effective global rate
     calculation and the rate for a one month period shall be provided to the
     Parent by the Facility Agent on or before the date of this agreement
     substantially in the form set out in schedule 8.

8.   SELECTION OF INTEREST PERIODS

8.1  TERM FACILITY

     (a)  Subject to clause 3.4(c) (Syndication) and the other provisions of
          this agreement, each Interest Period for the Term Advance shall be
          one, two, three or six months as notified by the relevant Borrower to
          the Facility Agent no later than 10:00 am three Business Days before
          the start of that Interest Period (or any other period not exceeding
          12 months to which the Facility Agent (acting on the instructions of
          all the Lenders) may agree).

     (b)  The first Interest Period for the Term Advance will start on its
          Drawdown Date and each subsequent Interest Period for the Term Advance
          will start on the last day of the immediately preceding Interest
          Period for the Term Advance.

     (c)  Each relevant Borrower will select Interest Periods for the Term
          Advance so that each Repayment Date for the Term Facility will fall on
          the last day of an Interest Period and, for this purpose, that
          Borrower may split the Term Advance into two separate Term Advances

                                       28

<PAGE>

          one of which shall (if applicable) be in an amount at least equal to
          the amount of the instalment due on the next following Repayment Date
          relating to the Term Advance and will have an Interest Period expiring
          on that Repayment Date.

     (d)  If a Borrower fails to select an Interest Period then, save as
          provided in this clause 8, it will be deemed to have selected a period
          of three months or any shorter period which is necessary to comply
          with the requirements of clause 8.1(c).

8.2  REVOLVING FACILITY

     Subject to clause 3.4(c) (Syndication) and the other provisions of this
     agreement, the Interest Period for each Revolving Advance shall be one,
     two, three or six months, as selected by the relevant Borrower in the
     relevant Drawdown Request (or any other period not exceeding 12 months to
     which Facility Agent (acting on the instructions of all the Lenders) may
     agree).

8.3  NON-BUSINESS DAYS

     If any Interest Period would, but for this clause 8.3, end on a day which
     is not a Business Day, that Interest Period shall be extended to (and the
     Maturity Date in the case of a Revolving Advance shall be) the immediately
     following Business Day, unless the result of that extension would be to
     carry that Interest Period into another calendar month, in which case that
     Interest Period shall end on (and that Maturity Date shall be) the
     immediately preceding Business Day.

9.   MARKET DISRUPTION

9.1  MARKET DISRUPTION NOTICE

     If, in relation to any Advance (an "AFFECTED ADVANCE"):

     (a)  the Facility Agent determines that, by reason of circumstances
          affecting the applicable interbank market generally, adequate and fair
          means do not or will not exist for ascertaining EURIBOR or LIBOR (as
          the case may be) applicable to that Affected Advance for an Interest
          Period; or

     (b)  Lenders whose participations in that Affected Advance exceed 50 per
          cent. of the amount of that Affected Advance notify the Facility Agent
          that EURIBOR or LIBOR (as the case may be) would not accurately
          reflect the cost to those Lenders of making or maintaining their
          participations in that Affected Advance for an Interest Period, the
          Facility Agent will give notice of that event to the Parent and the
          Lenders (a "MARKET DISRUPTION NOTICE").

9.2  SUBSTITUTE BASIS

     During the 30 days following the giving of a Market Disruption Notice, the
     Affected Advance will be made and the Facility Agent and the Parent will
     negotiate in good faith in order to agree on a mutually acceptable
     substitute basis for calculating the interest payable on the relevant
     Affected Advance. If a substitute basis is agreed within that period, then
     it shall apply in accordance with its terms (and may be retrospective to
     the beginning of the relevant Interest Period). The Facility Agent will not
     agree a substitute basis under this clause 9.2 without first obtaining the
     approval of the Lenders.

9.3  COST OF FUNDS

     Unless and until a substitute basis is agreed under clause 9.2 (Substitute
     basis), the interest payable on each Lender's participation in the relevant
     Affected Advance for the relevant Interest Period will be the rate
     certified by that Lender to be its cost of funds (from any source which it
     may reasonably select) plus the applicable Margin.

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<PAGE>

9.4  UNAVAILABILITY OF EURO

     If, in relation to any proposed Drawing by way of an Advance, Lenders whose
     participations in that Advance exceed 50 per cent. of the amount of that
     Advance notify the Facility Agent that deposits in Euro will not be readily
     available to them in the European interbank market in order to enable them
     to fund their participations in that Advance, the Lenders will not be
     obliged to participate in the proposed Drawing and any Drawdown Request
     which has been served by the relevant Borrower will be deemed withdrawn.

10.  REPAYMENT OF DRAWINGS

10.1 TERM ADVANCE

     (a)  The Parent shall repay the Term Advance on the Term Final Repayment
          Date.

     (b)  No amount repaid or prepaid in relation to the Term Advance may be
          redrawn.

10.2 REVOLVING ADVANCES REPAYMENT

     (a)  Each Borrower of any Revolving Advance shall repay that Revolving
          Advance on its Maturity Date.

     (b)  On the Maturity Date of the first Revolving Advance made on the first
          Drawdown Date pursuant to clause 2.2(b) (Purpose), as the case may be,
          the Parent shall repay that Revolving Advance out of the cash of the
          Parent (and not out of the proceeds of a Rollover Advance).

     (c)  Any amount repaid under the Revolving Facility may be redrawn in
          accordance with clause 5 (Drawdown procedures).

     (d)  On the Revolving Facility Repayment Date:

          (i)  the Revolving Facility will expire and the Revolving Commitment
               of each Lender will be reduced to zero; and

          (ii) each Borrower will repay or prepay all amounts outstanding and
               owed by it in relation to the Revolving Facility (together with
               all its Contingent Liabilities).

     (e)  The Parent shall procure that for a period of at least 10 consecutive
          Business Days during each calendar year (as of 2006), the total amount
          of all Revolving Advances shall be reduced to zero;

11.  PREPAYMENT AND CANCELLATION

11.1 VOLUNTARY PREPAYMENT

     A Borrower may prepay all or any part of the Term Advance at any time
     without premium or penalty, provided that:

     (a)  the Facility Agent has received no less than three Business Days'
          irrevocable notice from the Parent of the proposed date and amount of
          the prepayment;

     (b)  any partial prepayment is in a minimum amount of EUR 5,000,000 and, if
          greater an integral multiple of EUR 1,000,000; and

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     (c)  if paid other than on the last day of the Interest Period for the Term
          Advance, the relevant Borrower indemnifies the Lenders under clause
          28.1 (General indemnity and breakage costs).

11.2 ADDITIONAL RIGHT OF PREPAYMENT

     If:

     (a)  interest on a Lender's participation in an Advance is being calculated
          in accordance with clause 9.3 (Cost of funds);

     (b)  a Borrower is required to pay any additional amount to a Lender under
          clause 13.1 (Gross up); or

     (c)  the Parent is required to pay any amount to a Lender under clause 14.1
          (Increased costs),

     then, without prejudice to the obligations of any Obligor under those
     clauses, the Parent may, whilst the circumstances continue, serve a notice
     of prepayment and cancellation on that Lender through the Facility Agent.
     If the Parent serves any such notice:

     (a)  on the date which is ten Business Days after the date of service of
          the notice, each Borrower shall:

          (i)  prepay that Lender's participation in all Advances drawn by it
               together which accrued interest on those Advances and all other
               amounts payable to that Lender under the Senior Finance
               Documents; and

          (ii) provide cash cover in accordance with clause 1.4 (Cash cover) in
               an amount equal to the total Contingent Liability (if any) of
               that Lender in relation to Bank Guarantees; and

     (b)  all that Lender's Commitments shall be cancelled and reduced to zero
          as at the date of service of the notice.

11.3 SALE, CHANGE OF CONTROL AND LISTING

     (a)  If a Change of Control, Listing (other than a Permitted Listing) or
          Sale occurs:

          (i)  all of the Lenders' Commitments will immediately be cancelled and
               reduced to zero; and

          (ii) each Borrower will immediately prepay all Advances drawn by it,
               all Bank Guarantees issued for its account and all sums advanced
               to it.

     (b)  For the purposes of this agreement:

          (i)  a "CHANGE OF CONTROL" will occur if:

               (A)  UGI ceases to hold more than 50 per cent. of the equity
                    share capital of the Parent or equity share capital having
                    the right to cast more than 50 per cent. of the votes
                    capable of being cast in general meetings of the Parent; or

               (B)  UGI ceases after the date of this agreement to have the
                    right to determine the composition of a majority of the
                    board of directors (or like body) of the Parent; or

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               (C)  UGI ceases after the date of this agreement to have
                    "control" (as defined in article L. 233-3 paragraphs I and
                    II of the French Commercial Code) of the Parent;

          (ii) "LISTING" means a listing of all or any part of the share capital
               of the Parent on any investment exchange or any other sale or
               issue by way of flotation or public offering or any equivalent
               circumstances in relation to the Parent in any jurisdiction or
               country;

          (iii) "SALE" means a disposal (whether in a single transaction or a
               series of related transactions) of all or substantially all of
               the assets of the Group;

          (iv) "PERMITTED LISTING" means a Listing which does not result in a
               Change of Control.

11.4 ASSET DISPOSALS

     (a)  Subject to clauses 11.4(b) and 11.8 (Restrictions on upstreaming
          moneys), the Parent shall procure that the Net Proceeds of any
          disposal of any fixed asset exceeding EUR 80,000 (or its equivalent in
          other currencies) by a Group Company (other than a disposal permitted
          by clauses 19.3(a)(i), (ii), (iv), (v), (vi), (viii) or (ix)
          (Disposals) and other than to the extent that such Net Proceeds, when
          aggregated with the Net Proceeds of all other such sales made since
          the Signing Date, do not exceed EUR 20,000,000 (or its equivalent in
          other currencies)) are applied in prepayment of the Facilities.

     (b)  Net Proceeds need not be so applied if within 360 days after receipt
          they are reinvested in fixed assets related to the Core Business.

     (c)  All such Net Proceeds which are not applied for the purposes specified
          in clause 11.4(a) will be applied, in prepaying the Facilities on the
          last day of the Interest Period for the relevant Advances following
          the expiry of the 360 day period referred to in clause 11.4(b).

11.5 INSURANCE CLAIMS

     (a)  Subject to clauses 11.5(b), 11.5(c) and 11.8 (Restrictions on
          upstreaming moneys), if a Group Company receives any proceeds
          exceeding EUR 775,000 (or its equivalent in other currencies) as a
          result of making a claim under an insurance policy (other than in
          relation to third party liability or in relation to consequential loss
          policies that are actually applied to cover operating losses), the
          Parent shall procure that an amount equal to those proceeds (net of
          any applicable Tax) is applied in prepayment of the Facilities;

     (b)  Any amount received or recovered as a result of making a claim under
          an insurance policy need not be so applied if within 360 days after
          receipt it is applied in reinstating, replacing, repairing or
          otherwise investing in assets related to the Core Business;

     (c)  All such proceeds which are not applied for the purposes specified in
          clause 11.5(b) will be applied in prepaying the Facilities following
          the expiry of the 360 day period referred to in clause 11.5(b) or, if
          later, the last day of the Interest Period for the relevant Advances
          immediately following such date.

11.6 FINAL REFINANCING DATE

     If the Final Refinancing Date has not occurred by the 60th day following
     the first Drawdown Date:

     (a)  all of the Lenders' Commitments will immediately be cancelled and
          reduced to zero; and

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     (b)  each Borrower will immediately prepay all Advances drawn by it, all
          Bank Guarantees issued for its account and all sums advanced to it.

11.7 ORDER OF APPLICATION OF PREPAYMENTS

     (a)  Any amount to be applied in prepayment of the Facilities under clauses
          11.1 (Voluntary prepayment), 11.4 (Asset disposals) and 11.5
          (Insurance claims) shall be applied:

          (i)  first to prepay the Term Facility; and

          (ii) provided that all amounts under the Term Facility have been
               repaid first, in permanent prepayment of Revolving Advances, in
               such order as the Parent may select by no less than three
               Business Days' prior written notice to the Facility Agent and
               thereafter in providing cash cover in respect of any Contingent
               Liability under any Bank Guarantee issued under the Revolving
               Facility.

     (b)  If any amount is applied in accordance with clause 11.7(a)(ii), the
          Revolving Commitments shall immediately be cancelled by the amount
          equal to each amount prepaid or provided as cash cover in relation to
          the Revolving Facility. Any such cancellation shall apply to the
          Revolving Commitment of each Revolving Lender on a pro rata basis.

     (c)  Subject to the other provisions of this agreement, the Parent shall,
          by notice to the Facility Agent to be received at least three Business
          Days before the date of the relevant prepayment, designate which
          Drawings are to be prepaid on that date.

11.8 RESTRICTIONS ON UPSTREAMING MONEYS

     (a)  Any amount to be applied in prepayment of the Facilities under 11.4
          (Asset disposals) and 11.5 (Insurance claims) shall (except where the
          relevant amount has been received directly by the Parent) be limited
          to the aggregate of:

          (i)  the sum of (1) distributable profits of the Subsidiaries of the
               Parent net of taxes for the latest financial year (taking into
               account the relevant company's shareholding in its Subsidiaries)
               and (2) cash reserves distributable without incurring
               equalisation tax (en franchise de precompte), exceptional tax
               (prelevement exceptionnel) on distributions or similar tax (if
               any) of the relevant Subsidiaries (taking into account the
               percentage of the Parent's shareholding in the relevant
               Subsidiaries); and

          (ii) cash held by the Parent.

     (b)  Subject to clause 11.8(a), the Parent shall (within boundaries of
          French law and to the extent that it does not thereby incur any
          material adverse tax consequences) use its best endeavours to
          facilitate cash circulation (including early repayments of
          intercompany loans between Group Companies so as to permit partial
          prepayments of the Facilities under clauses 11.4 (Asset disposals) and
          11.5 (Insurance claims) to take place. The difference between the
          amount to be applied in prepayment of the Facilities under clause 11.4
          (Asset disposals) and/or 11.5 (Insurance claims) and the amount which
          can legally be prepaid under the limitations described at clause
          11.8(a)(i) and (ii) shall either be deposited by the relevant Group
          Company on a dedicated interest bearing bank account until the payment
          can be made upstream to the Parent (subject to a maximum period of six
          months) or, if the relevant Group Company is a Borrower under the
          Revolving Facility and if it so elects, shall be applied towards
          prepayment (but not cancellation) of the amounts due by it under the
          Revolving Facility.

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<PAGE>

     (c)  If:

          (i)  any amount is required to be applied in prepayment or repayment
               of the Facilities under this clause 11 but, in order to be so
               applied, moneys need to be upstreamed or otherwise transferred
               from one Group Company to another Group Company to effect that
               prepayment or repayment; and

          (ii) those moneys cannot be so upstreamed or transferred without:

               (A)  breaching a financial assistance prohibition or other legal
                    restriction applicable to a Group Company (or any of its
                    directors); or

               (B)  any Group Company incurring a material cost (whether as a
                    result of paying additional Taxes (including, in the case of
                    a Group Company incorporated in France, any special dividend
                    withholding tax (precompte) or otherwise),

          there will be no obligation to make that payment or repayment until
          that impediment no longer applies.

11.9 CANCELLATION OF TERM FACILITY

     The Parent may cancel the undrawn amount of the Term Commitments relating
     to the Term Facility in whole or in part (but, if in part, in a minimum
     amount of EUR 5,000,000 and an integral multiple of EUR 1,000,000) at any
     time during the Availability Period for the Term Facility by giving no less
     than three Business Days' irrevocable notice to the Facility Agent
     specifying the date and amount of the proposed cancellation and, on any
     cancellation of any Term Commitments, the amount of the corresponding Term
     Facility will reduce accordingly. Any such cancellation shall reduce each
     Lender's Commitment in respect of the Term Facility on a pro rata basis.

11.10 CANCELLATION OF REVOLVING FACILITY

     (a)  Provided that the Revolving Facility shall not be cancelled by
          application of proceeds which would otherwise give rise to mandatory
          prepayment of the Term Advance under any of clauses 11.3 (Sale, Change
          of Control and Listing), 11.4 (Asset disposals) or 11.5 (Insurance
          claims), the Parent may cancel the Revolving Commitments in whole or
          in part (but, if in part, in a minimum of EUR 5,000,000 and an
          integral multiple of EUR 1,000,000) at any time during the
          Availability Period for the Revolving Facility by giving no less than
          three Business Days' irrevocable notice to the Facility Agent
          specifying the date and amount of the proposed cancellation and, on
          any cancellation of the Revolving Commitments, the amount of the
          Revolving Facility will be reduced accordingly. Any such cancellation
          shall reduce each Lender's Revolving Commitment on a pro rata basis.

     (b)  No cancellation of the Revolving Facility may be made if it would
          result in the aggregate of the Revolving Advances and the Contingent
          Liability of all the Lenders under Bank Guarantees issued under the
          Revolving Facility at the time of the proposed cancellation exceeding
          the total Revolving Commitments at such time.

11.11 MISCELLANEOUS

     (a)  Any repayment or prepayment under this agreement must be accompanied
          by accrued interest on the amount repaid or prepaid and any other
          amount then due under this agreement.

     (b)  No amount prepaid or cancelled under this clause 11 may be redrawn or
          reinstated.

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     (c)  Any notice of prepayment or cancellation given under this agreement
          shall be irrevocable and, in the case of notice of prepayment, the
          Parent or the Borrower named in that notice shall be obliged to prepay
          (or, in the case of the Parent, to procure prepayment) in accordance
          with that notice.

     (d)  No prepayment of a Drawing or cancellation of any Commitment may be
          made except in accordance with this agreement.

12.  PAYMENTS

12.1 BY LENDERS

     (a)  On each date on which an Advance is to be made, each Lender shall make
          its participation in that Advance available to the Facility Agent on
          that date by payment in the currency in which the Advance is
          denominated and in immediately available cleared funds to the account
          specified by the Facility Agent for that purpose.

     (b)  The Facility Agent shall make the amounts paid to it available to the
          relevant Borrower on the date of receipt by payment in the same
          currency as received by the Facility Agent to the account specified by
          that Borrower in the notice requesting that Advance. If any Lender
          makes its share of any Advance available to the Facility Agent later
          than required by clause 12.1(a), the Facility Agent shall make that
          share available to the relevant Borrower as soon as practicable after
          receipt.

12.2 BY OBLIGORS

     (a)  On each date on which any amount is due from any Obligor under the
          Senior Finance Documents, that Obligor shall pay that amount on that
          date to the Facility Agent in immediately available cleared funds to
          the account specified by the Facility Agent for that purpose.

     (b)  Each payment under this agreement from an Obligor is to be made in
          Euro, except that:

          (i)  each repayment or prepayment of an Advance shall be in the
               currency in which it was drawn;

          (ii) each payment of interest shall be in same currency as the amount
               in relation to which that interest is payable;

          (iii) each payment in respect of losses shall be made in the currency
               in which the losses were incurred;

          (iv) each payment under clause 13.1 (Gross up) or clause 14.1
               (Increased costs) shall be made in the currency specified by the
               claiming Finance Party; and

          (v)  any amount expressed to be payable in a currency other than Euro
               shall be paid in that other currency.

     (c)  The Facility Agent shall, on the date of receipt, pay to the Finance
          Party to which the relevant amount is due its pro rata share (if any)
          of any amounts so paid to the Facility Agent in the same currency as
          received by the Facility Agent to the account specified by that party
          to the Facility Agent. If any amount is paid to the Facility Agent
          later than required by clause 12.2(a), the Facility Agent shall make
          that party's share available to it as soon as practicable receipt.

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12.3 NETTING OF PAYMENTS

     If on any Drawdown Date:

     (a)  the Revolving Lenders are required to make a Revolving Advance; and

     (b)  a payment is due to be made by an Obligor to the Facility Agent for
          the account of the Revolving Lenders,

     the Facility Agent may, without prejudice to the obligation of the relevant
     Obligor to make that payment, apply any amount payable by the Revolving
     Lenders to that Obligor on that Drawdown Date in relation to the relevant
     Revolving Advance in or towards satisfaction of the amounts payable by that
     Obligor to the Revolving Lenders on that Drawdown Date.

12.4 ASSUMED RECEIPT

     Where an amount is to be paid under any Senior Finance Document for the
     account of another person, the Facility Agent will not be obliged to pay
     that amount to that person until it is satisfied that it has actually
     received that amount. If the Facility Agent nonetheless pays that amount to
     that person and the Facility Agent had not in fact received that amount,
     then that person will on request refund that amount to the Facility Agent.
     That person will be liable:

     (a)  to pay to the Facility Agent on demand interest on that amount at the
          rate determined by the Facility Agent to be equal to the cost to the
          Facility Agent of funding that amount for the period from payment by
          the Facility Agent until refund to the Facility Agent of that amount;
          and

     (b)  to indemnify the Facility Agent on demand against any additional loss
          it may have incurred by reason of it having paid that amount before
          having received it.

12.5 NO SET-OFF OR DEDUCTIONS

     All payments made by an Obligor under the Senior Finance Documents must be
     paid in full without set-off or counterclaim and not subject to any
     condition and free and clear of and without any deduction or withholding
     for or on account of any Taxes (except as provided in clause 13 (Taxes)).

12.6 BUSINESS DAYS

     Subject to clause 8.3 (Non-Business Days), if any amount would otherwise
     become due for payment under any Senior Finance Document on a day which is
     not a Business Day, that amount shall become due on the immediately
     following Business Day and all amounts payable under any Senior Finance
     Document calculated by reference to any period of time shall be
     recalculated on the basis of that extension of time.

12.7 APPLICATION OF MONEYS

     If any amount paid or recovered in relation to the liabilities of an
     Obligor under any Senior Finance Document is less than the amount then due,
     the Facility Agent shall apply that amount against amounts outstanding
     under the Senior Finance Documents in the following order:

     (a)  first, to any unpaid fees and reimbursement of unpaid expenses of the
          Agents;

     (b)  second, to any unpaid fees and reimbursement of unpaid expenses of the
          Lenders;

     (c)  third, to unpaid interest;

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<PAGE>

     (d)  fourth, to unpaid principal (including provision of cash cover in
          relation to Contingent Liabilities); and

     (e)  fifth, to other amounts due under the Senior Finance Documents,

     in each case (other than (a)), pro rata to the outstanding amounts owing to
     the relevant Finance Parties under the Senior Finance Documents taking into
     account any applications under this clause 12.7. Any such application by
     the Facility Agent will override any appropriation made by an Obligor.

13.  TAXES

13.1 GROSS UP

     If any deduction or withholding for or on account of Taxes or any other
     deduction imposed by its jurisdiction of incorporation from any payment
     made or to be made by an Obligor to any Finance Party or by the Facility
     Agent to any other Finance Party under any Senior Finance Document is
     required by law, then that Obligor will:

     (a)  ensure that the deduction or withholding does not exceed the minimum
          amount legally required;

     (b)  pay to the relevant Taxation or other authorities within the period
          for payment permitted by the applicable law, the amount which is
          required to be paid in consequence of the deduction (including the
          full amount of any deduction from any additional amount paid under
          this clause 13.1);

     (c)  promptly pay to the relevant Finance Party an additional amount equal
          to the amount required to procure that the aggregate net amount
          received by that Finance Party will equal the full amount which would
          have been received by it if no such deduction or withholding had been
          made; and

     (d)  indemnify each Finance Party against any losses incurred by it by
          reason of:

          (i)  any failure by the relevant Obligor to make any deduction or
               withholding; or

          (ii) any such additional amount not being paid on the due date for
               payment of that amount.

13.2 EXEMPTIONS FROM GROSS-UP

     No additional amount will be payable to a Finance Party under clause 13.1
     (Gross up) to the extent that the relevant deduction or withholding would
     not have arisen if that Finance Party had been a Qualifying Lender at the
     time the relevant payment fell due (unless the reason it is not a
     Qualifying Lender is the introduction of, or a change in, any law or
     regulation, or a change in the interpretation or application of any law or
     regulation or in any practice or concession of the relevant tax authority,
     in each case occurring after the date of this agreement or after the date
     on which such Finance Party became a party to this agreement).

13.3 INDEMNITY

     Without prejudice to clause 13.1 (Gross up), if, as a result of a tax
     change occurring after the date of this agreement on or after the date on
     which such Finance Party became a party to this agreement, any Finance
     Party (or any person on its behalf) is required to make any payment in
     relation to Tax (other than Tax on its overall net income) on or calculated
     by reference to the amount of any payment

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     received or receivable by that Finance Party (or any person on its behalf)
     under any Senior Finance Document (including under clause 13.1 (Gross up))
     or any liability in relation to any such payment is assessed, levied,
     imposed or claimed against any Finance Party (or any person on its behalf),
     the Parent shall, on demand by the Facility Agent, forthwith indemnify that
     Finance Party (or relevant other person) against that payment or liability
     and any losses incurred in connection with that payment or liability.

13.4 FILINGS

     If an Obligor is required (or would in the absence of any appropriate
     filing be required) to make a deduction or withholding for or on account of
     Taxes or any other deduction contemplated by this clause 13, that Obligor
     and each relevant Finance Party shall promptly file all forms and documents
     which the appropriate Tax authority may reasonably require in order to
     enable that Obligor to make relevant payments under the Senior Finance
     Documents without having to make that deduction or withholding.

     Each Finance Party which is a Qualifying Lender by reason of paragraph (b)
     of the definition of "Qualifying Lender" in clause 1.1 (Definitions) shall,
     as soon as reasonably practicable after request from the Parent, file with
     any relevant Tax authority, or provide to the Parent, any Tax form,
     declaration or other document which the Parent has reasonably requested
     from that Finance Party for the purpose of enabling payments to be made by
     the relevant Obligor to that Finance Party under the Senior Finance
     Documents without deduction or withholding.

13.5 TAX CREDITS

     If an Obligor pays an additional amount under clause 13.1 (Gross up) and a
     Lender, in its sole opinion acting in good faith, receives an off-setting
     Tax credit or other similar Tax benefit arising out of that payment, that
     Lender shall reimburse to the relevant Obligor the amount which that Lender
     determines, in its sole opinion acting in good faith, is attributable to
     the relevant deduction, withholding or payment and will leave it in no
     better or worse position in relation to its worldwide Tax liabilities than
     it would have been in if the payment of that additional amount had not been
     required, to the extent that that Lender, in its sole opinion acting in
     good faith, can do so without prejudice to the retention of the amount of
     that credit or benefit and without any other adverse Tax consequences for
     it. Any such reimbursement shall be conclusive evidence of the amount due
     to that Obligor and shall be accepted by that Obligor in full and final
     settlement of any claim for reimbursement under this clause 13.5.

13.6 TAX CREDIT RECOVERY

     If, following any reimbursement by a Lender under clause 13.5 (Tax
     credits), that Lender is required to relinquish or surrender any credit or
     benefit or suffers an adverse Tax consequence as a result of that
     reimbursement and that relinquishment, surrender or that adverse Tax
     consequence was not (or was not fully) taken into account in determining
     that reimbursement, the relevant Obligor shall, on demand, return to that
     Lender the proportion of the reimbursement which will compensate the Lender
     for that relinquishment, surrender or adverse Tax consequence.

13.7 TAX AFFAIRS

     Nothing in this clause 13 shall oblige any Lender to disclose any
     information to any person regarding its Tax affairs or Tax computations or
     interfere with the right of any Lender to arrange its Tax affairs in
     whatever manner it thinks fit.

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14.  CHANGE IN CIRCUMSTANCES

14.1 INCREASED COSTS

     (a)  If the effect of the introduction of, or a change in, or a change in
          the interpretation or application of, any law or regulation (including
          any law or regulation relating to Taxation, reserve asset, special
          deposit, cash ratio, liquidity or capital adequacy requirements or any
          other form of banking or monetary controls) applicable to any Lender
          (an "AFFECTED LENDER") occurring after the date of this agreement or
          after the date on which it became a Lender or compliance by any Lender
          with any such law or regulation is to:

          (i)  impose an additional cost on the Affected Lender as a result of
               it having entered into any Senior Finance Document or making or
               maintaining its participation in any Advance or of it performing
               its obligations under any Senior Finance Document;

          (ii) reduce any amount payable to the Affected Lender under any Senior
               Finance Document or reduce the effective return on its capital or
               any class of its capital; or

          (iii) result in the Affected Lender making any payment or foregoing
               any interest or other return on or calculated by reference to any
               amount received or receivable by the Affected Lender from any
               other party under any Senior Finance Document,

          (each such increased cost, reduction, payment, foregone interest or
          other return being referred to in this clause 14.1 as an "INCREASED
          COST"), then:

               (A)  the Affected Lender will notify the Parent and the Facility
                    Agent of that event as soon as reasonably practicable after
                    becoming aware of it; and

               (B)  on demand from time to time by the Affected Lender, the
                    Parent will pay to the Affected Lender the amount which the
                    Affected Lender reasonably determines is necessary to
                    compensate the Affected Lender for that increased cost (or
                    the portion of that increased cost which is, in the opinion
                    of the Affected Lender, attributable to it entering into the
                    Senior Finance Documents, making or maintaining its
                    participation in any Drawing, or maintaining its
                    Commitment).

     (b)  The certificate of an Affected Lender specifying the amount of
          compensation payable under clause 16.1(a) and the basis for the
          calculation of that amount is, in the absence of manifest error,
          conclusive.

     (c)  The Parent will not be obliged to compensate any Affected Lender under
          clause 16.1(a) in relation to any increased cost:

          (i)  compensated for by clause 13 (Taxes);

          (ii) attributable to a change in the rate of Tax on the overall net
               income of the Affected Lender;

          (iii) attributable to the implementation by the applicable authorities
               having jurisdiction over the Affected Lender and/or its Lending
               Office of the matters set out in the statement of the Basle
               Committee on Banking Regulations and the Supervisory Practices
               dated July, 1988 and entitled "International Convergence of
               Capital Measurement and Capital Standards", or the directives of
               the European Council (as amended or supplemented prior to the
               date of this agreement) of 17 April, 1989 on the own funds of
               credit institutions (89/229/EEC) and of 18 December, 1989 on the

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               solvency ratio for credit institutions (89/647/EEC), except in
               the case of an increase in mandatory reserve requirements in
               respect of requirements in effect on the date of this agreement
               in each case to the extent and according to the timetable
               provided for therein;

          (iv) occurring as a result of any negligence or wilful default of the
               Affected Lender or any of its Holding Companies including but not
               limited to a breach by that Affected Lender or any of its Holding
               Companies of any fiscal, monetary or capital adequacy limit
               imposed on it by any law or regulation; or

          (v)  to the extent that the increased cost was incurred in respect of
               any day more than six months after the first date on which it was
               reasonably practicable to notify the Parent thereof.

     (d)  If any Holding Company of a Lender suffers a cost which would have
          been recoverable by that Lender under this clause 14.1 if that cost
          had been imposed on that Lender, that Lender shall be entitled to
          recover the amount of that cost under this clause 14.1 on behalf of
          the relevant Holding Company.

14.2 ILLEGALITY

     If it is or becomes contrary to any law or regulation for any Lender to
     make any of the Facilities available or to maintain its participation in
     any Advance or any of its Commitments, then that Lender may give notice to
     that effect to the Facility Agent and the Parent, whereupon:

     (a)  the relevant Borrowers will forthwith prepay that Lender's
          participation in all Advances then outstanding, together with all
          interest accrued on those Advances, provide cash cover in an amount
          equal to that Lender's Contingent Liability in relation to each Bank
          Guarantee and pay all other amounts due to that Lender under the
          Senior Finance Documents (including under clause 28.1 (General
          indemnity and breakage costs)); and

     (b)  that Lender's undrawn Commitments (if any) will immediately be
          cancelled and that Lender will have no further obligation to make the
          Facilities available.

14.3 MITIGATION

     If circumstances arise in relation to a Lender which would or may result
     in:

     (a)  any Advance in which it participates becoming an Affected Advance
          under clause 9 (Market disruption); or

     (b)  an obligation to pay an additional amount to it under clause 13.1
          (Gross up); or

     (c)  a demand for compensation by it under clause 14.1 (Increased costs);
          or

     (d)  an obligation to prepay any amount to it under clause 14.2
          (Illegality),

     then, without in any way limiting, reducing or otherwise qualifying the
     obligations of the Obligors under the clauses referred to above, that
     Lender will notify the Facility Agent and the Parent as soon as reasonably
     practicable after becoming aware of those circumstances and, in
     consultation with the Facility Agent and the Parent, take such reasonable
     steps as may be open to it to mitigate the effects of those circumstances,
     including:

     (a)  changing its Lending Office for the purposes of this agreement; or

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     (b)  transferring its rights and obligations under this agreement in
          accordance with clause 26 (Changes to parties),

     but the Lender concerned will not be obliged to take any action if to do so
     might have a material adverse effect on its business, operations or
     financial condition or cause it to incur liabilities or obligations
     (including Taxation) which (in its reasonable opinion) are material or
     would materially reduce its return in relation to its participation in the
     Facilities.

14.4 ISSUING LENDER

     References in clause 13 (Taxes) and this clause 14 to a "Lender" or
     "Lenders" include a Lender in its capacity as an Issuing Lender.

15.  FEES, EXPENSES AND STAMP DUTIES

15.1 ARRANGEMENT AND UNDERWRITING FEE

     The Parent will pay to the Arranger the arrangement and underwriting fee in
     accordance with the terms of the Fees Letter.

15.2 AGENCY FEE

     The Parent will pay to the Facility Agent for its own account an agency fee
     in accordance with the terms of the Fees Letter.

15.3 COMMITMENT FEE

     The Parent will pay to the Facility Agent for the account of the Lenders a
     commitment fee in respect of the Term Facility and the Revolving Facility
     which will:

     (a)  in respect of the Term Facility and the Revolving Facility until the
          first Drawdown Date, be calculated at the rate of 0.25 per cent. per
          annum on the daily undrawn, uncancelled portion of the Total
          Commitments from (and including) the Signing Date until (but
          excluding) the earlier of the first Drawdown Date and the last day of
          the Availability Period for the Term Facility and which will be paid
          in one instalment on the first Drawdown Date or, if earlier, on the
          last day of the Availability Period for the Term Facility; and

     (b)  in respect of the Revolving Facility as from the first Drawdown Date,
          be calculated at the percentage rate per annum equal to 35 per cent.
          of the Margin applicable to the Revolving Facility on the daily
          undrawn, or not otherwise made available, and uncancelled portion of
          the Revolving Commitments from (and including) the first Drawdown Date
          until (but excluding) one month before the Revolving Facility
          Repayment Date and shall be payable quarterly in arrear and on the
          Revolving Facility Repayment Date.

     Accrued commitment fee under this clause 15.3 is also payable to the
     Facility Agent for the account of each Lender on the cancelled amount of
     its Revolving Commitment on the date on which any cancellation of that
     Revolving Commitment takes effect.

15.4 BANK GUARANTEE COMMISSION

     Each Borrower for whose account a Bank Guarantee is issued shall pay to the
     Facility Agent for the account of each Lender a commission at a rate equal
     to the Margin applicable to the Revolving Facility on that Lender's
     Contingent Liability from day to day in relation to that Bank Guarantee.
     That commission shall be payable quarterly in arrear from the date of this
     agreement for so long as that

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     Lender has any such Contingent Liability and on the date on which it ceases
     to have any such Contingent Liability.

15.5 ISSUING LENDER FEE

     Each Borrower for whose account a Bank Guarantee is issued shall pay to the
     Issuing Lender which issued that Bank Guarantee a fee equal to 0.125 per
     cent. per annum on the Contingent Liability of that Issuing Lender from day
     to day in relation to that Bank Guarantee. That fee shall be payable
     quarterly in arrear from the date of this agreement for so long as that
     Issuing Lender has any such Contingent Liability and on the date on which
     it ceases to have any such Contingent Liability.

15.6 VAT

     All fees payable under the Senior Finance Documents are exclusive of any
     value added tax or other similar tax chargeable on or in connection with
     those fees. If any such value added tax or other similar tax is or becomes
     chargeable, that tax will be added to the relevant fee at the appropriate
     rate and will be paid by the relevant Obligor at the same time as the
     relevant fee itself is paid.

15.7 INITIAL EXPENSES

     The Parent will on demand pay to the Agents and the Arranger the amount of
     all costs and expenses (including legal fees and other out-of-pocket
     expenses and any value added tax or other similar tax thereon) reasonably
     incurred by either Agent or the Arranger in connection with:

     (a)  the negotiation, preparation, execution and completion of the Senior
          Finance Documents, and all documents, matters and things referred to
          in, or incidental to, any Senior Finance Document (subject to a cap as
          agreed in the Fees Letter);

     (b)  any amendment, consent or suspension of rights (or any proposal for
          any of the same) relating to any Senior Finance Document (and
          documents, matters or things referred to in any Senior Finance
          Document);

     (c)  the investigation of any Default; and

     (d)  primary syndication (including the costs of preparing the Syndication
          Memorandum and all matters incidental to primary syndication).

15.8 ENFORCEMENT EXPENSES

     The Parent will on demand pay to each Finance Party the amount of all costs
     and expenses (including legal fees and other out of pocket expenses and any
     value added tax or other similar tax thereon) reasonably incurred by that
     Finance Party in connection with the preservation, enforcement or attempted
     preservation or enforcement of any of that Finance Party's rights under any
     Senior Finance Document (and any documents referred to in any Senior
     Finance Document) upon production of duly documented evidence.

15.9 STAMP DUTIES, ETC.

     The Parent will on demand indemnify each Finance Party from and against any
     liability for any stamp, documentary, filing and other duties and Taxes (if
     any) which are or may become payable in connection with any Senior Finance
     Document.

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15.10 CALCULATION

     All fees under this agreement which accrue and are payable in arrear will
     accrue on a daily basis and will be calculated by reference to a 360 day
     year and the actual number of days elapsed.

16.  GUARANTEE AND INDEMNITY

16.1 GUARANTEE

     Each Guarantor irrevocably and unconditionally and jointly and severally:

     (a)  guarantees to each Finance Party (as a caution solidaire) punctual
          performance by each Obligor which is a Subsidiary of that Guarantor of
          all that Obligor's payment obligations under the Senior Finance
          Documents; and

     (b)  undertakes with each Finance Party that whenever an Obligor which is a
          Subsidiary of that Guarantor does not pay any amount when due under or
          in connection with any Senior Finance Document, that Guarantor shall
          immediately on demand pay that amount.

16.2 FURTHER GUARANTEE PROVISIONS

     The obligations of each Guarantor under clause 16.1 (Guarantee) (the
     "GUARANTEE OBLIGATIONS"):

     (a)  will remain in full force and effect until all amounts which may be or
          become payable by any Obligor under or in connection with any Senior
          Finance Document have been irrevocably paid in full;

     (b)  are in addition to and are not in any way prejudiced by any other
          security now or subsequently held by any Finance Party; and

     (c)  are subject to any limitation which is contained in the Accession
          Document by which that Guarantor becomes a Guarantor.

16.3 WAIVERS:

     Each Guarantor irrevocably and expressly:

     (a)  undertakes not to exercise any rights which it may have under article
          2021 (benefice de discussion) or article 2026 (benefice de division)
          of the Code Civil;

     (b)  waives any right it may have of first requiring any Finance Party (or
          any trustee or agent on its behalf) to proceed against or enforce any
          other rights or security or claim payment from any person before
          claiming from that Guarantor under this clause 16;

     (c)  undertakes not to exercise any rights which it may have against any
          other Obligor under article 2032 of the Code Civil; and

     (d)  undertakes not to exercise any rights which it may have under article
          2039 of the Code Civil to take any action against any other Obligor in
          the event of any extension of any Availability Period, any Maturity
          Date, any Repayment Date or any other date for payment of any amount
          due, owing or payable to any Finance Party under any Senior Finance
          Document, in each case without the consent of that Guarantor.

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<PAGE>

16.4 NO SUBROGATION

     (a)  Until all amounts which may be or become payable by any Obligor under
          or in connection with any Senior Finance Document have been
          irrevocably paid in full, each Guarantor irrevocably and expressly
          undertakes not to exercise any rights which it may have (including its
          rights under article 2028 of the Code Civil):

          (i)  to be subrogated to or otherwise share in any security or monies
               held, received or receivable by any Finance Party or to claim any
               right of contribution in relation to any payment made by any
               Guarantor under this agreement;

          (ii) to enforce any of its rights of subrogation and indemnity against
               any Obligor or any co-surety;

          (iii) following a claim being made on any Guarantor under clause 16.1
               (Guarantee), to demand or accept repayment of any monies due from
               any other Obligor to any Guarantor or claim any set-off or
               counterclaim against any other Obligor; or

          (iv) to claim or prove in a liquidation or other insolvency proceeding
               of any Obligor or any co-surety in competition with any Finance
               Party.

     (b)  Each Guarantor agrees that, to the extent that the agreement to
          withhold the exercise of its rights of subrogation, reimbursement,
          indemnification and contribution as set forth in this clause 16.4 is
          found by any court of competent jurisdiction to be void or voidable
          for any reason, any rights of subrogation, reimbursement or
          indemnification which that Guarantor may have against any Obligor or
          against any collateral or security, and any rights of contribution
          which that Guarantor may have against any such other Guarantor shall
          be junior and subordinate to:

          (i)  any rights any Finance Party may have against any Obligor
               (including without limitation that Guarantor);

          (ii) all right, title and interest which any Finance Party may have in
               any such collateral or security; and

          (iii) any right which any Finance Party may have against those
               Guarantors any Finance Party may use, sell or dispose of any item
               of collateral or security as it sees fit without regard to any
               subrogation rights which any Guarantor may have and, upon such
               disposal or sale, any rights of subrogation which that Guarantor
               may have had shall terminate.

     If any amount is paid to any Guarantor on account of any such subrogation,
     reimbursement or indemnification rights at any time when all Guarantee
     Obligations have not been paid in full, those amounts shall be held for the
     benefit of the Finance Parties and shall forthwith be paid over to the
     Finance Parties to be credited and applied against the Guarantee
     Obligations, whether matured or unmatured, in accordance with the terms of
     this agreement.

16.5 TURNOVER

     Each Guarantor shall hold for the benefit of and, promptly pay or transfer
     to, the Facility Agent any payment, distribution or benefit of security
     received by it arising as a result of a breach of this clause 16.

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17.  CHANGES TO OBLIGORS AND SECURITY

17.1 ADDITIONAL BORROWERS

     A Group Company (other than Finco) may become a Borrower after the Signing
     Date in respect of the Revolving Facility if:

     (a)  the Parent gives notice to the Facility Agent identifying the relevant
          Group Company (the "NEW BORROWER") attaching certified copies of such
          New Borrower's most recent audited accounts;

     (b)  the Majority Lenders confirm to the Facility Agent that they consent
          to the New Borrower becoming a Borrower;

     (c)  the New Borrower, the Parent (for itself and as agent for the existing
          Obligors) and the Facility Agent execute an Accession Document
          designating the New Borrower as a Borrower;

     (d)  where the immediate Holding Company of the New Borrower is not already
          a Guarantor, the Parent and that Holding Company execute an Accession
          Document designating that Holding Company as a Guarantor;

     (e)  the Parent or the New Borrower delivers to the Facility Agent:

          (i)  the original executed Accession Documents referred to in
               paragraphs (c) and (d) above;

          (ii) the following documents executed by the New Borrower in favour of
               the Finance Parties: a general assignment of all Receivables by
               way of security (cession de creances professionnelles pursuant to
               the Loi Dailly);

          (iii) a pledge of financial instruments accounts executed by the
               immediate Holding Company of the New Borrower over the shares in
               the New Borrower;

          (iv) the documents listed in paragraph 1 (Formalities certificates) of
               schedule 3;

          (v)  a legal opinion confirming capacity and authorisation; and

          (vi) a letter substantially in the form set out in schedule 8 (amended
               as necessary to reflect Drawings of the Revolving Facility) duly
               counter-signed by the New Borrower,

          each satisfactory to the Facility Agent (acting reasonably).

17.2 EFFECTIVE TIME

     When the conditions set out in clause 17.1 (Additional Borrowers) are
     satisfied, the Facility Agent will notify the Parent and the Finance
     Parties and the New Borrower will become a Borrower with effect from that
     notification.

17.3 RELEASE OF GUARANTORS

     If no Default is continuing (or if a Default is continuing the relevant
     disposal is being effected at the request of the Majority Lenders in
     circumstances where any of the security created by the Security Documents
     has become enforceable) and all the shares in a Guarantor which is not a
     Borrower are disposed of to a person outside (and which will remain
     outside) the Group in accordance with this agreement, the Facility Agent
     and the Security Agent shall, on request of the Parent as soon as

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<PAGE>

     reasonably practicable after completion of that disposal, execute any
     documents which are necessary to release that Guarantor from all
     liabilities under the Senior Finance Documents.

17.4 RELEASE OF SECURITY

     If no Default is continuing (or if a Default is continuing the relevant
     disposal is being effected at the request of the Majority Lenders in
     circumstances where any of the security created by the Security Documents
     has become enforceable) and a Group Company disposes of any asset
     (including shares in any other Group Company which is not a Borrower) to a
     person outside (and which will remain outside) the Group in accordance with
     this agreement, the Security Agent shall, on request of the Parent as soon
     as reasonably practicable after completion of that disposal, execute any
     documents necessary to release that asset from the security created in
     favour of the Security Agent by a Security Document.

18.  REPRESENTATIONS AND WARRANTIES

18.1 RELIANCE

     Each Obligor represents (in respect of itself and its Subsidiaries) and
     warrants as set out in the following provisions of this clause 18 and
     acknowledges that each Finance Party has entered into the Senior Finance
     Documents and has agreed to provide the Facilities in full reliance on
     those representations and warranties.

18.2 INCORPORATION

     Each Group Company is duly incorporated (except for those Group Companies
     which are societes en participation ("SEPS")) and validly existing with
     limited liability (except for those Group Companies which are Groupements
     d'Interets Economiques ("GIEs")) under the laws of the place of its
     incorporation and, subject to specific rules applicable to SEPs and GIEs,
     has the power to own its assets and carry on its business.

18.3 POWER AND CAPACITY

     It has the power and capacity to enter into and comply with its obligations
     under each Finance Document to which it is party.

18.4 AUTHORISATION

     It has taken (or, where applicable, will take within the required time
     period) all necessary action:

     (a)  to authorise the entry into and the compliance with its obligations
          under each Finance Document to which it is party;

     (b)  to ensure that its obligations under each Finance Document are valid,
          legally binding and enforceable in accordance with their terms (save
          for obligations subject to qualifications as to matters of law
          contained in the legal opinions referred to in paragraph 9 of schedule
          3);

     (c)  to make each Finance Document to which it is party admissible in
          evidence in the courts of France other than certified translations of
          the Finance Documents into French; and

     (d)  to create the security constituted by each Security Document to which
          it is party and to ensure that that security has the ranking specified
          in that Security Document.

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18.5 NO CONTRAVENTION

     The entry into by any Group Company, the exercise of its rights under and
     the compliance with its obligations under and each Finance Document to
     which it is party do not:

     (a)  contravene any law, regulation, judgment or order to which any Group
          Company is subject;

     (b)  conflict with its constitutional documents;

     (c)  breach any agreement or the terms of any consent binding upon any
          Group Company or any assets of any Group Company to an extent which
          could reasonably be expected to have a Material Adverse Effect; or

     (d)  oblige any Group Company to create any security or result in the
          creation of any security over any assets of any Group Company, other
          than under the Security Documents.

18.6 OBLIGATIONS BINDING

     The obligations expressed to be assumed by it under each Finance Document
     to which it is a party constitute or when executed will constitute its
     valid and legally binding obligations and are enforceable in accordance
     with their terms and each of the Security Documents to which it is a party
     constitute valid security ranking in accordance with its terms (subject, in
     each case, to any applicable insolvency, bankruptcy or similar laws
     affecting creditors' rights generally and save for qualifications as to
     matters of law contained in the legal opinions referred to in paragraph 9
     of schedule 3).

18.7 CONSENTS

     All consents and filings required for the conduct of its business as
     presently conducted have been obtained (or, where applicable, will be
     obtained within the required time period) and are in full force and effect.

18.8 NO DEFAULTS

     (a)  No Event of Default and on the date of this agreement and on each
          Drawdown Date, no Default has occurred and is continuing.

     (b)  No event is continuing which constitutes a default under any agreement
          or document to which any Group Company is party, the consequences of
          which could reasonably be expected to have a Material Adverse Effect.

18.9 LITIGATION

     To the best of its knowledge and belief, having made due and careful
     enquiry, no dispute, litigation, arbitration or administrative proceeding
     is current or pending against any Group Company which, if adversely
     determined, could reasonably be expected to have a Material Adverse Effect.

18.10 ENVIRONMENT

     (a)  Each Group Company is and has at all times taken such steps as are
          necessary to comply in all material respects with all Environmental
          Laws and all Environmental Approvals necessary in connection with the
          ownership and operation of its business have been obtained and are in
          full force and effect.

                                       47

<PAGE>

     (b)  To the best of its knowledge and belief having made due and careful
          enquiry, there are no circumstances which could reasonably be expected
          to prevent any Group Company from complying in all material respects
          with any Environmental Law or Environmental Approval.

     (c)  No material investment of which the relevant Group Company is aware
          and which is necessary to obtain, renew, extend, modify, revoke,
          suspend or surrender any Environmental Approval or to ensure
          compliance with any Environmental Law has not been budgeted for.

     (d)  To the best of its knowledge and belief having made due and careful
          enquiry, no Group Company is aware of any actual changes or other
          possible changes (which are referred to in national, international or
          European bodies' or other regulatory bodies' consultation papers or in
          other formal methods of announcing possible changes) in Environmental
          Law which could reasonably be expected to have a Material Adverse
          Effect.

18.11 OWNERSHIP OF ASSETS

     Each Group Company has good title to or valid leases or licenses of, or is
     otherwise entitled to use or permit other Group Companies to use, all
     assets necessary to conduct its business.

18.12 ACCOUNTS

     (a)  The Original Audited Accounts were prepared in accordance with French
          gaap consistently applied and fairly represent the consolidated
          financial position (as at the date to which they were prepared) of and
          the results of the operations of, the Group for the period to which
          they relate and the state of the affairs of the Group (as the case may
          be) at the end of the relevant period and, in particular, disclose or
          reserve against all liabilities (actual or contingent).

     (b)  The Original Management Accounts show with reasonable accuracy the
          consolidated financial position of the Group as at the date to which
          they were prepared and the results of the operations of the Group for
          the period to which they relate and the state of the affairs of the
          Group at the end of such period and, in particular, disclose or
          reserve against all liabilities (actual or contingent).

     (c)  The latest Annual Accounts, the latest Annual Management Accounts and
          the latest Half-Year Accounts delivered from time to time under clause
          19.10(c) (Financial statements) were prepared in accordance with
          French gaap consistently applied and, in the case of:

          (i)  the latest Annual Accounts fairly represent the consolidated
               financial position of the Group as at the date to which they were
               prepared and the results of the operations of the Group for the
               period to which they related and the state of the affairs of the
               Group at the end of that period and, in particular, disclose or
               reserve against all liabilities (actual or contingent); and

          (ii) the latest Annual Management Accounts and Half-Year Accounts show
               with reasonable accuracy the consolidated financial position of
               the Group as at the date to which they were prepared and the
               results of the operations of the Group for the period to which
               they related and, in particular, disclose or reserve against all
               liabilities (actual or contingent) to the extent required by the
               Approved Accounting Principles.

18.13 APPROVED PROJECTIONS

     (a)  All statements of fact (taken as a whole) in principle recorded in the
          Approved Projections are true and accurate in all material respects.

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     (b)  The opinions and views expressed in the Approved Projections represent
          the honestly held opinions and views of the Senior Management Team and
          were arrived at after careful consideration and are based on
          reasonable grounds.

     (c)  The projections and forecasts contained in the Approved Projections
          are based upon assumptions (including assumptions as to the future
          performance of the Group, inflation, price increases, interest rates
          and efficiency gains) which have been carefully considered by the
          directors of the Parent and which are considered by them to be fair
          and reasonable in each case as at the date which the relevant fact,
          opinion, view, projection or forecast was provided or as at the date
          at which it is stated.

     (d)  The Approved Projections are not misleading in any material respect
          and do not omit to disclose any matter where failure to disclose such
          matter would result in the Approved Projections (or any information or
          business plan contained therein) to be misleading in any material
          respect for any person considering whether to provide finance to the
          Obligors.

     (e)  Nothing has occurred or come to the attention of the Parent since the
          date as at which the Approved Projections were prepared which renders
          any material facts contained in the Approved Projections materially
          inaccurate or misleading or which makes any of the opinions,
          projections or forecasts contained in the Approved Projections unfair
          or unreasonable or renders any of the assumptions on which the
          projections are based unfair or unreasonable.

18.14 MATERIAL ADVERSE EFFECT

     As at the Signing Date and the first Drawdown Date, there has been no event
     which has had a Material Adverse Effect since the date to which the
     Original Management Accounts were prepared.

18.15 MATERIAL DISCLOSURES

     It has fully disclosed in writing to the Facility Agent all facts of which
     it is aware having made due and careful enquiry relating to the Group which
     it knows could reasonably be expected to materially influence the decision
     of the Lenders to make the Facilities available to the Obligors.

18.16 HOLDING COMPANY

     The Parent is a holding company and it has not carried on any business or
     incurred any liabilities other than by entering into or under the Finance
     Documents (including auditors fees and expenses) and certain trading
     activities in the Core Business.

18.17 SYNDICATION MEMORANDUM

     The Syndication Memorandum is not misleading in any material respect and
     has been read and approved by the Senior Management Team.

18.18 REPETITION

     The representations and warranties in this clause 18 are made on the date
     of this agreement and shall be deemed repeated on, the date of each
     Drawdown Request and on each Drawdown Date (other than in the case of a
     Rollover Advance), in each case by reference to the facts and circumstances
     existing on that date, except that:

     (a)  the representations and warranties set out in clauses 18.9
          (Litigation), 18.12 (Accounts), paragraphs (a) and (b), 18.13
          (Approved Projections), 18.14 (Material Adverse Effect), 18.15

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          (Material disclosures) and 18.16 (Holding Company) shall not be
          repeated after the first Drawdown Date;

     (b)  the representations and warranties set out in clauses 18.11 (Ownership
          of assets), 18.13 (Approved Projections) and 18.16 (Holding Company)
          shall only be made by the Parent; and

     (c)  the representation and warranty set out in clause 18.17 (Syndication
          Memorandum) shall only be made on the date of the Syndication
          Memorandum.

19.  UNDERTAKINGS

19.1 DURATION OF UNDERTAKINGS

     Each Obligor undertakes to each Finance Party in the terms of this clause
     19 from the date of this agreement until all amounts outstanding under the
     Senior Finance Documents have been discharged and no Finance Party has any
     further Commitment or obligations under the Senior Finance Documents
     provided that, after a period of twelve months following the first Drawdown
     Date, the undertaking provided under clauses 19.4(a) (Acquisition), 19.4(b)
     (Joint Ventures), 19.5(a) (Borrowings), 19.5(b) (Guarantees), 19.5(c)
     (Loans) and 19.10(h)(ii) (Investigations) shall cease to apply if the ratio
     of Total Net Debt to EBITDA last communicated to the Facility Agent in
     accordance with clause 19.10(d) (Information and Accounting Undertakings)
     is lower than or equal to 2.00:1 and for so long as that ratio remains
     lower than or equal to 2.00:1 (the "RELEASE PERIOD"), provided however that
     all transactions carried out during the Release Period which would have not
     been permitted under clauses 19.4(a) (Acquisition), 19.4(b) (Joint
     Ventures), 19.5(a) (Borrowings), 19.5(b) (Guarantees) and 19.5(c) (Loans)
     outside a Release Period shall in the event such Release Period terminates
     and the above clauses re-apply, be deemed to be incorporated in these
     clauses as permitted transactions.

19.2 AUTHORISATIONS AND STATUS UNDERTAKINGS

     (a)  CONSENTS

          Each Obligor will obtain within the required time period and maintain
          in full force and effect all consents and filings required under any
          applicable law or regulation:

          (i)  to enable it to perform its payment and other material
               obligations under each Finance Document to which it is a party;

          (ii) for the validity, enforceability or admissibility in evidence
               (other than certified translations of the Finance Documents into
               French) of each such Finance Document; and

          (iii) to ensure that its obligations under the Finance Documents are
               legal, valid and binding and each of the Security Documents
               constitutes valid security ranking in accordance with its terms.

     (b)  MAINTENANCE OF STATUS AND AUTHORISATION

          Each Obligor will, and will procure that each of its Subsidiaries
          will:

          (i)  do all things necessary to maintain its corporate existence;

          (ii) obtain and maintain in full force and effect all consents and
               filings required for the conduct of its business; and

          (iii) comply with all laws and regulations applicable to it,

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          where failure to do so could reasonably be expected to materially
          impair its ability to perform its obligations under the Senior Finance
          Documents.

     (c)  AMALGAMATIONS

          No Obligor will, and each Obligor will procure that none of its
          Subsidiaries will, amalgamate, merge or consolidate with or into any
          other person or be the subject of any reconstruction, except for any
          amalgamation, merger, consolidation or reconstruction:

          (i)  of two or more Group Companies (provided that such amalgamation,
               merger, consolidation or reconstruction does not adversely affect
               the economic and legal effect of the guarantee and security
               position of the Finance Parties under the relevant Senior Finance
               Documents prior thereto and that, for the avoidance of doubt, the
               following mergers are not permitted: (x) a merger between the
               Parent and Antargaz and (y) a merger between Antargaz and another
               Group Company where Antargaz would not be the surviving entity);
               or

          (ii) otherwise with the prior written consent of the Majority Lenders.

     (d)  CHANGE OF BUSINESS

          No Obligor will, and each Obligor will procure that none of its
          Subsidiaries will, make a material change to the nature of its core
          business.

     (e)  SUBSIDIARY CONSTITUTIONAL DOCUMENTS

          No Obligor (other than the Parent) will, and each Obligor will procure
          that none of its Subsidiaries will, agree to any amendment of its
          constitutional documents which could reasonably be expected to be
          materially adverse to the interests of any Finance Party under any
          Senior Finance Document (excluding, for the avoidance of doubt, any
          amendment in connection with any transaction permitted under clause
          19.9 (Share capital, dividend and other junior financing arrangement
          undertakings)).

     (f)  FINCO STATUS

          (Except in the case of winding up or other permitted amalgamation of
          Finco following the Final Refinancing Date) Finco will remain a
          direct, wholly-owned Subsidiary of the Parent (except as to one share,
          which will be owned by Antargaz) and (until the Final Refinancing
          Date) shall not carry on any business or hold any assets other than
          the holding of the Intra-Group Bonds and the carrying out of
          obligations under the High Yield Documents and Intra-Group Bond
          Documents to which it is a party (subject in each case to the
          provisions of the Senior Finance Documents).

     (g)  PARI PASSU RANKING

          Each Obligor shall ensure that the claims of the Finance Parties under
          the Senior Finance Documents will at all times rank at least pari
          passu in right and priority of payment with the claims of all its
          other present and future unsecured and unsubordinated creditors except
          those whose claims are preferred solely by operation of law.

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19.3 DISPOSALS AND SECURITY UNDERTAKINGS

     (a)  DISPOSALS

          No Obligor will, and each Obligor will procure that none of its
          Subsidiaries will, (whether by a single transaction or a series of
          related or unrelated transactions and whether at the same time or over
          a period of time) sell, transfer, lease out or otherwise dispose (each
          a "DISPOSAL") of any of its assets or agree to do so, other than:

          (i)  any disposal of assets on arm's length terms in the ordinary
               course of business;

          (ii) any inventory disposal by any Group Company in the ordinary
               course of trading;

          (iii) any disposal of obsolete or redundant plant and equipment, or of
               property not required for the operation of its business;

          (iv) any disposal of assets to an Obligor which is party to a legally
               valid, binding and enforceable Security Document which creates a
               valid and effective Security Interest over the asset securing all
               or substantially all amounts outstanding under the Senior Finance
               Documents;

          (v)  any disposal of Cash Equivalents on arm's length terms;

          (vi) any disposal of assets by a Group Company (other than an Obligor)
               to another Group Company (other than Finco);

          (vii) disposals (other than to Finco) of assets on arm's length terms
               not otherwise permitted under this clause 19.3;

          (viii) the exchange of assets (the "TRANSFERRED ASSETS") for other
               assets of a comparable or superior nature and value (the
               "RECEIVED ASSETS"), provided that, if the Transferred Assets were
               subject to a Security Interest in favour of the Finance Parties,
               then a Security Interest in favour of the Finance Parties (and
               acceptable in form, nature and substance to the Security Agent)
               shall be granted by the relevant Group Company over the Received
               Assets; and

          (ix) any other disposal made with the prior consent of the Majority
               Lenders,

               provided always that no disposal may be made of any shares in:

               (A)  any Distribution Company which would result in the Parent
                    owning (directly or indirectly) less than 95 per cent. of
                    the equity share capital in that Distribution Company; or

               (B)  any Material Company (other than a Distribution Company).

     (b)  DISPOSALS FOR FULL CONSIDERATION

          Each Obligor will, and each Obligor will, procure that its
          Subsidiaries will, ensure that any disposal permitted by clause
          19.3(a) is:

          (i)  for at least the higher of book value and market value payable in
               cash on or before completion of that disposal; and

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          (ii) as part of an arm's length transaction on terms that the
               purchaser of the relevant asset does not obtain title to or
               possession of that asset before completion of that disposal.

     (c)  NEGATIVE PLEDGE

          No Obligor will, and each Obligor will procure that none of its
          Subsidiaries will, create or agree to create or permit to subsist any
          Security Interest over any part of its assets, other than:

          (i)  any Security Interest existing at the date of this agreement,
               provided that the maximum amount secured by any such Security
               Interest shall not be increased after the date of this agreement;

          (ii) any Security Interest granted by the Senior Finance Documents;

          (iii) liens securing obligations no more than 30 days overdue, arising
               by operation of law and in the ordinary course of business;

          (iv) Security Interests arising out of title retention provisions in a
               supplier's standard conditions of supply of goods where the goods
               in question are supplied on credit and are acquired by relevant
               Group Company in the ordinary course of trading;

          (v)  rights of set-off existing in the ordinary course of trading
               activities between any Group Company and its respective suppliers
               or customers;

          (vi) rights of set-off arising by operation of law or by contract by
               virtue of the provision to any Group Company of clearing bank
               facilities or overdraft facilities permitted under this
               agreement;

          (vii) Security Interests up to a maximum aggregate amount of EUR
               3.000.000 (or its equivalent in other currencies) for taxes,
               assessments or charges (A) not yet due or (B) that are being
               contested in good faith;

          (viii) liens in favour of French tax authorities securing the
               liabilities of any Group Company under tax reassessments in
               respect of French professional tax (taxe professionnelle), to the
               extent that such liabilities (x) are fully guaranteed by Total
               under the provisions of the Warranty Agreement or (y) do not
               exceed a maximum aggregate amount of EUR 5,000,000;

          (ix) Security Interests created in connection with pre-judgement court
               proceedings up to a maximum aggregate amount not exceeding EUR
               3,000,000 (or its equivalent in other currencies);

          (x)  any Security Interests not otherwise permitted under this clause
               19.3(c) created by any Subsidiary of Antargaz and securing
               Financial Indebtedness (other than any such Financial
               Indebtedness arising under or in connection with the High Yield
               Documents or the Intra-Group Bond Documents) in an aggregate
               principal amount not exceeding EUR 3,000,000 (or its equivalent
               in other currencies) (provided that there shall be no security on
               the shares of any Material Company or Geovexin or Rhone Gaz or
               (but without prejudice to paragraph (viii) above) on the business
               (fonds de commerce) of any Material Company or Geovexin or Rhone
               Gaz);

          (xi) any Security Interest created by any Partly Owned Storage and
               Logistics Company in respect of which, pursuant to the
               shareholder agreement or constitutional documents relating to
               that Partly Owned Storage and Logistics Company, the Group
               Company

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               which holds a direct equity interest in that Partly Owned Storage
               and Logistics Company is not entitled to prohibit the creation of
               that Security Interest; and

          (xii) any other Security Interest created with the prior written
               consent of the Majority Lenders.

     (d)  DE-REGISTRATION OF EXISTING PLEDGES OF BUSINESSES

          The Parent and Antargaz shall procure that the existing pledges of
          businesses (nantissements de fonds de commerce) relating to the
          businesses of the Parent and Antargaz, respectively, and securing the
          Existing Facilities shall have been de-registered (radies) before the
          end of a 4 month period following the first Drawdown Date and shall
          provide evidence of such de-registration to the Facility Agent within
          the same period.

19.4 ACQUISITION AND INVESTMENT UNDERTAKINGS

     (a)  ACQUISITIONS

          No Obligor will, and each Obligor will procure that none of its
          Subsidiaries will acquire any assets or shares other than:

          (i)  in the ordinary course of its trading activity;

          (ii) any Permitted Acquisition, provided that:

               (A)  the Parent demonstrates to the satisfaction of the Facility
                    Agent that the Permitted Acquisition is funded entirely out
                    of:

                    (1)  an Equity Contribution; and/or

                    (2)  Cash and Cash Equivalents owned by Group Companies;

               (B)  in respect of any individual Permitted Acquisition where the
                    aggregate of the purchase price paid, or to be paid, for the
                    shares or assets comprised in that Permitted Acquisition
                    plus the total net debt assumed or repaid, or to be assumed
                    or repaid, in connection with that Permitted Acquisition
                    (together, the "ENTERPRISE VALUE") does not exceed EUR
                    15,000,000 (or its equivalent in other currencies), the
                    Parent has provided the Facility Agent with revised
                    financial projections and forecasts for the business of the
                    Group incorporating that Permitted Acquisition no later that
                    10 Business Days prior to the date of that Permitted
                    Acquisition;

               (C)  in respect of any individual Permitted Acquisition where the
                    enterprise value of that Permitted Acquisition exceeds EUR
                    15,000,000 (or its equivalent in other currencies), the
                    Parent has provided the Facility Agent with revised
                    financial projections and forecasts for the business of the
                    Group incorporating that Permitted Acquisition and a legal
                    and accounting due diligence report, in each case in form
                    and substance satisfactory to the Majority Lenders, no later
                    than 30 days prior to the date of that Permitted
                    Acquisition; and

               (D)  the aggregate enterprise values of all Permitted
                    Acquisitions after the Signing Date does not exceed EUR
                    90,000,000 (or its equivalent in other currencies); and

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          (iii) (subject to clause 19.3(a) (Disposals)), shares owned by it or
               any other Group Company in any other Group Company as at the
               Signing Date.

     (b)  JOINT VENTURES

          No Obligor will, and each Obligor will procure that none of its
          Subsidiaries will, enter into any Joint Venture or invest any amount
          (whether by way of loan, subscription for share capital, incurrence of
          any liabilities or otherwise) in any Joint Venture other than:

          (i)  an investment by a Group Company (other than the Parent or Finco)
               in Groupement Donges or any Joint Venture to which it is a party
               at the date of this agreement (an "EXISTING JOINT VENTURE")
               provided that such investment is:

               (A)  expressly permitted under clause 19.5 (Financing arrangement
                    undertakings); or

               (B)  made by way of equity contribution and/or shareholders'
                    loans (provided that the aggregate amount of all such equity
                    contributions and outstanding loans pursuant to clause
                    19.5(c)(ii)(A) (Loans) shall not exceed EUR 23,000,000 (or
                    its equivalent in other currencies) at any time);

          (ii) an investment by a Group Company (other than the Parent or Finco)
               in any Joint Venture (other than any existing Joint Venture)
               where:

               (A)  the liability of that Group Company in respect of that Joint
                    Venture is limited to the aggregate amount invested by that
                    Group Company in that Joint Venture;

               (B)  any investment in that Joint Venture is made by way of
                    equity subscription or shareholder loan; and

               (C)  the aggregate Investment Amount invested in all Joint
                    Ventures under this sub-paragraph (ii) in any Financial Year
                    does not exceed EUR 20,000,000 (or its equivalent in other
                    currencies).

19.5 FINANCING ARRANGEMENT UNDERTAKINGS

     (a)  BORROWINGS

          No Obligor will, and each Obligor will procure that none of its
          Subsidiaries will, incur or permit to be outstanding any Financial
          Indebtedness other than:

          (i)  any Financial Indebtedness of the Group existing at the Signing
               Date (as listed in the certificate referred to in paragraph 3 of
               schedule 3) and not to be refinanced as of the first Drawdown
               Date to the extent not exceeding EUR 4,500,000;

          (ii) amounts due under any Senior Finance Document, the Existing
               Facilities Agreement (until the first Drawdown Date), the High
               Yield Notes (until the Final Refinancing Date), the Intra-Group
               Bonds (until the Final Refinancing Date) or in respect of an
               Equity Contribution;

          (iii) Financial Indebtedness permitted by clauses 19.5(b)
               (Guarantees), 19.5(c) (Loans), 19.5(d) (Hedging) or 19.5(e)
               (Banking business);

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          (iv) unsecured overdraft or working capital facilities of any Group
               Company (other than Finco) in relation to which a Bank Guarantee
               in an amount equal to the maximum principal amount of those
               facilities has been issued;

          (v)  loans arising by operation of law (including labour and tax
               regulations);

          (vi) any Financial Indebtedness of any Group Company (other than
               Finco) in an aggregate principal amount which does not exceed EUR
               25,000,000 (or its equivalent in other currencies) at any time;

          (vii) any Financial Indebtedness created by any Partly Owned Storage
               and Logistics Company with a third party in respect of which,
               pursuant to the shareholder agreement or constitutional documents
               relating to that Partly Owned Storage and Logistics Company, the
               Group Company (the "INVESTING GROUP COMPANY") which holds a
               direct equity interest in that Partly Owned Storage and Logistics
               Company is not entitled to prohibit the creation of that
               Financial Indebtedness, provided that the aggregate amount of
               Financial Indebtedness ("THIRD PARTY INDEBTEDNESS") created
               pursuant to this sub-paragraph (vii) by Partly Owned Storage and
               Logistics Companies where any investing Group Company is liable
               for the debts of that Partly Owned Storage and Logistics Company
               does not exceed EUR 10,000,000 (or its equivalent in other
               currencies) at any time;

          (viii) bank guarantees (cautions bancaires) issued to French tax
               authorities to secure the liabilities of any Group Company under
               tax reassessments in respect of French professional tax (taxe
               professionnelle); and

          (ix) any other Financial Indebtedness incurred with the prior consent
               of the Majority Lenders.

     (b)  GUARANTEES

          No Obligor will, and each Obligor will procure that none of its
          Subsidiaries will grant or make available any guarantee other than:

          (i)  any guarantee existing on the date of this agreement, provided
               that the maximum amount guaranteed by any such guarantee shall
               not be increased after the date of this agreement;

          (ii) any guarantee contained in any Senior Finance Document (or the
               Existing Facilities Agreement (until the first Drawdown Date) or
               the High Yield Guarantee (until the redemption of the High Yield
               Notes));

          (iii) any guarantee of Financial Indebtedness which is otherwise
               permitted under clause 19.5(a) (Borrowings) (other than any such
               Financial Indebtedness arising under or in connection with the
               High Yield Documents or the Intra-Group Bond Documents); and

          (iv) any other guarantees given by a Group Company (other than Finco)
               in the ordinary course of its (or any of its Subsidiaries' or
               Joint Ventures') business in respect of its obligations or the
               obligations of any of its Subsidiaries (other than Finco)
               provided that such obligations do not have the nature of
               Financial Indebtedness and that the aggregate maximum contingent
               liability under all such guarantees does not exceed EUR
               50,000,000 (or its equivalent in other currencies) at any time.

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     (c)  LOANS

          No Obligor will, and each Obligor will procure that none of its
          Subsidiaries will, make any loans or grant any credit to any person
          other than:

          (i)  credit granted by any Group Company (other than Finco) in the
               ordinary course of its trading activities;

          (ii) any loan made by a Group Company (the "LENDING GROUP COMPANY") to
               any other Group Company (the "BORROWING GROUP COMPANY") (in each
               case, other than Finco), provided that:

               (A)  the aggregate amount of outstanding loans made by Obligors
                    to Group Companies (other than loans made for the purposes
                    of making a Permitted Acquisition) which are not Obligors
                    (together with the aggregate amount of equity contributions
                    and/or shareholders' loans made pursuant to clause
                    19.4(b)(i) (Joint Ventures) but excluding for the avoidance
                    of doubt any equity contributions made pursuant to clause
                    19.4(b)(ii) (Joint Ventures)) shall at no time exceed EUR
                    23,000,000 (or its equivalent in other currencies); and

               (B)  if the lending Group Company is a Borrower under the
                    Revolving Facility, that lending Group Company grants to the
                    Finance Parties an assignment (cession) of the benefit of
                    that intercompany loan by way of security (pursuant to the
                    Loi Dailly);

          (iii) any loan or grant of credit to employees of the Group (to the
               extent permissible under applicable law) provided that the
               maximum aggregate principal amount of all such loans shall not
               exceed EUR 2,300,000 (or its equivalent in other currencies) for
               the Group taken as a whole;

          (iv) the Intra-Group Bonds (until the Final Refinancing Date); and

          (v)  any other loan or grant of credit granted with the prior consent
               of the Majority Lenders.

     (d)  HEDGING

          (i)  No Obligor will, and each Obligor will procure that none of its
               Subsidiaries will, enter into any Derivative Instrument other
               than (A) the Hedging Agreements referred to in sub-paragraph (ii)
               below and (B) Derivative Instruments entered into by any Group
               Company (other than Finco) in the ordinary course of its business
               for the purpose of managing or hedging its exposure to interest
               rates, exchange rates or commodity prices (but excluding
               speculative purposes).

          (ii) The Obligors will ensure that, for a period of at least two years
               from the Signing Date, the Group has hedging of interest rate
               exposure on terms satisfactory to the Facility Agent in relation
               to at least 50 per cent. of the amount of funds available under
               the Term Facility (it being specified that the Parent hereby
               represents that prior to the Signing Date it has entered into
               hedging agreements complying with such undertaking).

          (iii) The parties shall agree to use standard ISDA or FBF agreements
               as Hedging Agreements.

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     (e)  BANKING BUSINESS

          Each Obligor will, and will procure that each of its Subsidiaries
          will:

          (i)  only maintain bank accounts with:

               (A)  those banks with which they hold accounts at the date of
                    this agreement;

               (B)  banks which are approved by the Facility Agent (such
                    approval not to be unreasonably withheld or delayed); or

               (C)  any Finance Party; and

          (ii) save for facilities provided under the terms of the Senior
               Finance Documents, only carry on banking business with and
               (subject to clause 19.5(a) (Borrowings)) obtain unsecured
               overdraft and working capital facilities from banks approved by
               the Facility Agent (such approval not to be unreasonably withheld
               or delayed).

     (f)  RING FENCING OF FINCO

          Notwithstanding any other provision of this agreement, no Obligor will
          (and each Obligor will procure that none of its Subsidiaries will):

          (i)  make any loan to or grant any financial accommodation to Finco;

          (ii) pay any interest, principal or any other amount to, or otherwise
               transfer monies to Finco whatsoever (except pursuant to the High
               Yield Documents and the Intra-Group Bond Documents to the extent
               permitted by the Intercreditor Agreement or for the purpose of
               the Refinancing);

          (iii) grant any guarantee (except the High Yield Guarantee) or
               Security Interest or enter into any participation or purchase
               arrangements in relation to any obligation of Finco;

          (iv) sell, transfer, lease out, lend or otherwise dispose of any asset
               to Finco,

          save in each case as expressly permitted under the Intercreditor
          Agreement.

19.6 CONDUCT OF BUSINESS UNDERTAKINGS

     (a)  INSURANCE

          (i)  Each Obligor will, and will procure that each of its Subsidiaries
               will effect and thereafter maintain insurances at its own expense
               in relation to all its assets and risks of an insurable nature
               with reputable insurers which:

               (A)  provide cover against such risks, and to such extent, as
                    normally insured against by other companies owning or
                    possessing similar assets or carrying on similar businesses;
                    and

               (B)  shall be in amounts which would in the circumstances be
                    prudent for those companies.

          (ii) The Parent will:

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               (A)  supply to the Facility Agent on request copies of each
                    policy for insurance required to be maintained in accordance
                    with clause 19.6(a)(i) or (ii) (the "POLICIES"), together
                    with the current premium receipts relating to the policies;

               (B)  as soon as reasonably practicable, notify the Facility Agent
                    of any material change to the insurance cover of each
                    Obligor and each Obligor's subsidiaries; and

               (C)  as soon as reasonably practicable, notify the Facility Agent
                    of any claim under any policy which is for, or is reasonably
                    likely to result in a claim under that policy for, an amount
                    in excess of EUR 775,000 (or its equivalent in other
                    currencies).

     (b)  INTELLECTUAL PROPERTY

          Each Obligor will, and will procure that each of its Subsidiaries
          will:

          (i)  ensure that it beneficially owns or has all necessary consents to
               use all the Intellectual Property Rights that it requires in
               order to conduct its business;

          (ii) observe and comply with all obligations and laws applicable to it
               in relation to the Intellectual Property; and

          (iii) maintain and protect the Intellectual Property required for the
               operation of its business;

          in each case where not doing so could reasonably be expected to
          prejudice the interests of the Finance Parties under the Senior
          Finance Documents.

     (c)  TAXES

          Each Obligor will, and will procure that each of its Subsidiaries
          will, pay when due (or within any applicable time limit), all Taxes
          imposed upon it or any of its assets, income or profits on any
          transactions undertaken or entered into by it except in relation to
          any bona fide tax dispute (for which, if applicable, provision has
          been made in its accounts).

     (d)  ARM'S LENGTH TRANSACTIONS

          No Obligor will, and each Obligor will procure that none of its
          Subsidiaries will, enter into any agreement or arrangement other than
          on an arm's length basis.

19.7 ENVIRONMENTAL UNDERTAKINGS

     Each Obligor will, and each Obligor will procure that each of its
     Subsidiaries will:

     (a)  comply in all material respects with all Environmental Approvals and
          Environmental Laws applicable to it;

     (b)  obtain and maintain to the satisfaction of all relevant regulatory
          bodies all Environmental Approvals applicable to it;

     (c)  promptly upon receipt of the same notify the Facility Agent of any
          claim, notice or other communication served on it in relation to any
          Environmental Law or Environmental Approval

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          applicable to it or if it becomes aware of any actual material
          variation to any Environmental Law or Environmental Approval;

     (d)  promptly notify the Facility Agent of any material investment required
          to be made by any Group Company to maintain, acquire, renew, modify,
          amend, surrender or revoke any Environmental Approval or if it
          otherwise becomes aware of such a requirement; and

     (e)  use all reasonable precautions to avoid actions which may give rise to
          a material liability under Environmental Law.

19.8 TRANSACTION DOCUMENT UNDERTAKINGS

     (a)  CLAIMS UNDER MATERIAL CONTRACTS

          The Parent will, and will use its best efforts to procure that each of
          its Subsidiaries will:

          (i)  take all reasonable action to enforce all material rights it may
               have under any Material Contract;

          (ii) notify the Facility Agent promptly of any material claim made by
               a Group Company under any Material Contract;

          (iii) provide the Facility Agent with reasonable details of that claim
               and its progress; and

          (iv) notify the Facility Agent as soon as practicable upon that claim
               being resolved,

          in each case where failure to do so could reasonably be expected to
          prejudice the interests of the Finance Parties under the Senior
          Finance Documents.

     (b)  CHANGES TO CONSTITUTIONAL DOCUMENTS

          The Parent will not, and will procure that none of its Subsidiaries
          will, agree to any amendment of any term of any constitutional
          document which could reasonably be expected to adversely affect the
          interests of any Finance Party under the Senior Finance Documents.

     (c)  CHANGES TO THE HIGH YIELD DOCUMENTS AND INTRA-GROUP BOND DOCUMENTS

          The Parent will not, and will procure that Finco will not agree to any
          amendment of the High Yield Documents or Intra-Group Bond Documents
          which would conflict with any provision of the Intercreditor
          Agreement.

19.9 SHARE CAPITAL, DIVIDEND AND OTHER JUNIOR FINANCING ARRANGEMENT UNDERTAKINGS

     (a)  SHARE ISSUES

          No Obligor will, and each Obligor will procure that none of its
          Subsidiaries will, allot or issue any securities (valeurs mobilieres)
          other than:

          (i)  an issue of shares by one Group Company (other than Finco) to
               another Group Company (other than Finco) allowing, in the case of
               non wholly-owned members of the Group, for proportionate issues
               to minority shareholders;

          (ii) an issue of shares by one Group Company (other than Finco) to any
               Group pension scheme or employee incentive scheme;

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          (iii) any issue of shares in the Parent for the purposes of an Equity
               Contribution; or

          (iv) any issue of shares with the prior consent of the Majority
               Lenders.

     (b)  REDEMPTION AND ACQUISITION OF OWN SHARES

          No Obligor will, and each Obligor will procure that none of its
          Subsidiaries will, directly or indirectly redeem, purchase, retire or
          otherwise acquire any shares or warrants issued by it or otherwise
          reduce its capital, other than:

          (i)  in favour of an Obligor; or

          (ii) where it is obliged to do so by law.

     (c)  CASH MOVEMENT

          No Obligor will, and each Obligor will procure that none of its
          Subsidiaries will, be a party to any contractual or similar
          restriction (except as set out in any Senior Finance Document, the
          Existing Facilities Agreement (until the first Drawdown Date) any High
          Yield Document (until the redemption of the High Yield Notes) or any
          Intra-Group Bond Document (until the first Drawdown Date)) by which
          any Group Company is prohibited from making loans, transferring assets
          or making any payment of dividends, distributions of income or other
          amounts.

     (d)  INTRA-GROUP BOND DOCUMENTS AND HIGH YIELD DOCUMENTS

          The Parent shall notify the full redemption of the High Yield Notes
          and Intra-Group Bonds in accordance with the applicable provisions of
          the High Yield Documents and Intra-Group Bond Documents, so as to
          allow the Final Refinancing Date to occur within the 60 days following
          the first Drawdown Date.

19.10 INFORMATION AND ACCOUNTING UNDERTAKINGS

     (a)  DEFAULTS

          Each Obligor will notify the Facility Agent forthwith upon becoming
          aware of the occurrence of a Default and will from time to time on
          request (with a reasonable period between requests) supply the
          Facility Agent with a certificate signed by its mandataire social
          certifying that no Default has occurred and is continuing or, if that
          is not the case, setting out details of any Default which is
          outstanding and the action taken or proposed to be taken to remedy it.

     (b)  BOOKS OF ACCOUNT AND AUDITORS

          Each Obligor will, and will procure that each of its Subsidiaries
          will:

          (i)  keep proper books of account relating to its business; and

          (ii) have as its auditors any one of Deloitte & Touche, Ernst & Young,
               KPMG, PricewaterhouseCoopers, Mazars, RSM Salustro Reydel or
               Grant Thorton (or such other firm as the Facility Agent shall
               approve (such approval not to be unreasonably withheld or
               delayed)) (except in the case of a Partly Owned Storage and
               Logistics Company which, as at the Signing Date, has a different
               firm of auditors and, pursuant to the shareholder agreement or
               constitutional documents relating to that Partly Owned Storage
               and Logistics Company, the Group Company which holds a direct

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               equity interest in that Partly Owned Storage and Logistics
               Company is not entitled to procure a change of those existing
               auditors).

     (c)  FINANCIAL STATEMENTS

          The Parent will deliver to the Facility Agent (with sufficient copies
          for each of the Lenders if requested):

          (i)  as soon as available, and in any event within 90 days (with
               respect to (A) below) or 120 days (with respect to (B) below)
               after the end of each Financial Year, copies of:

               (A)  the consolidated management accounts (before audit) of the
                    Group as at the end of and for that Financial Year,
                    including a profit and loss account, balance sheet and cash
                    flow statement;

               (B)  the audited consolidated accounts of the Group as at the end
                    of and for that Financial Year, including a profit and loss
                    account, balance sheet, cash flow statement and directors
                    and auditors' report on those accounts; and

               (C)  the audited accounts of each Obligor for that Financial
                    Year;

          (ii) as soon as available, and in any event within 60 days of the end
               of the first Accounting Half-Year in each Financial Year, copies
               of the unaudited consolidated management accounts of the Group as
               at the end of and for that Accounting Half-Year, including, for
               the 6 month period comprising such Accounting Half-Year, a profit
               and loss account, balance sheet, cash flow statement and
               management commentary for the Group, in such form as the Facility
               Agent may reasonably require;

          (iii) no less than ten days before the beginning of each Financial
               Year, the Operating Budget for that Financial Year, in such form
               as the Facility Agent may reasonably require,

          which accounts, Operating Budget and update to the Operating Budget
          shall, in each case, have been approved by the chief financial officer
          of the Parent.

     (d)  COMPLIANCE CERTIFICATES

          (i)  Each of the Annual Accounts, Annual Management Accounts and
               Half-Year Accounts must be accompanied by a certificate signed by
               the chief financial officer and (in the case of the Annual
               Accounts only) the mandataire social of the Parent, which shall:

               (A)  certify whether or not, as at the date of the relevant
                    accounts, the Parent was in compliance with the financial
                    covenants contained in clause 19.11 (Financial Covenant -
                    Leverage Ratio) and contain reasonably detailed
                    calculations; and

               (B)  confirm that, as at the date of that certificate, no Event
                    of Default is outstanding and, to best of knowledge after
                    due and careful inquiry, no Potential Event of Default is
                    outstanding.

          (ii) Each of the Annual Accounts must be accompanied by a certificate
               from the Auditors which shall be in a form substantially in
               schedule 7.

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     (e)  APPROVED ACCOUNTING PRINCIPLES

          All accounts of any Group Company delivered to the Facility Agent
          under this agreement shall be prepared in accordance with the Approved
          Accounting Principles. If there is a change in the Approved Accounting
          Principles after the date of this agreement:

          (i)  the Parent shall as soon as practicable advise the Facility
               Agent;

          (ii) following request by the Facility Agent, the Parent and the
               Facility Agent shall negotiate in good faith with a view to
               agreeing any amendments to clauses 19.11 (Financial Covenant-
               Leverage Ratio) and 19.12 (Financial definitions) which are
               necessary to give the Lenders comparable protection to that
               contemplated by those clauses at the date of this agreement;

          (iii) if amendments satisfactory to the Majority Lenders are agreed by
               the Parent and the Facility Agent within 30 days of that
               notification to the Facility Agent, those amendments shall take
               effect in accordance with the terms of that agreement; and

          (iv) if amendments satisfactory to the Majority Lenders are not so
               agreed within 30 days then, within 15 days after the end of that
               30 day period, the Parent shall either:

               (A)  deliver to the Facility Agent, in reasonable detail and in a
                    form satisfactory to the Facility Agent, details of all any
                    adjustments which need to be made to the relevant accounts
                    in order to bring them into line with the Approved
                    Accounting Principles as at the date of this agreement; or

               (B)  ensure that the relevant accounts are prepared in accordance
                    with the Approved Accounting Principles as at the date of
                    this agreement.

     (f)  MANAGEMENT MEETINGS

          The Facility Agent shall be entitled to call for meetings with the
          chief executive officer and/or the chief financial officer of the
          Parent and/or Antargaz twice in each Financial Year to discuss
          financial information delivered under clause 19.10(c) (Financial
          statements) on reasonable prior notice and at times reasonably
          convenient to the chief executive officer and/or chief financial
          officer.

     (g)  ACCOUNTING REFERENCE DATE AND TAX CONSOLIDATION

          (i)  The Parent shall not change its Financial Year end without the
               prior consent of the Facility Agent. The Parent shall procure
               that the financial year end of each of its Subsidiaries is the
               same as the Financial Year end (except, in the case of a Partly
               Owned Storage and Logistics Company which, as at the Signing
               Date, has a different financial year end and, pursuant to the
               terms of the shareholders agreement or constitutional documents
               relating to that Partly Owned Storage and Logistics Company, the
               Group Company which holds a direct equity interest in that Partly
               Owned Storage and Logistics Company is not entitled to procure a
               change of that existing financial year end).

          (ii) Each Obligor undertakes to procure that the consolidated tax
               group status (integration fiscale) of UGI Bordeaux, the Parent
               and each of the Parent's Subsidiaries which fulfils the
               conditions for inclusion in the consolidated tax group of UGI
               Bordeaux will continue for so long as any Obligor has any
               obligation under any Senior Finance Document. For the avoidance
               of doubt, the Parent and its Subsidiaries shall be authorised to
               make payments to UGI Bordeaux under the Tax Consolidation

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               Agreement (such payments being equal to the income tax that would
               be due by the Parent and its Subsidiaries in the absence of the
               tax consolidation regime) provided that UGI Bordeaux will, in
               accordance with the Tax Consolidation Agreement and the UGI
               Bordeaux Letter of Undertakings, reallocate part of such payments
               to the Parent.

     (h)  INVESTIGATIONS

          (i)  If the Majority Lenders have reasonable grounds for believing
               that either:

               (A)  any accounts or calculations provided under this agreement
                    are inaccurate or incomplete in any material respect; or

               (B)  the Parent is, or may in future be, in breach of any of its
                    obligations under clause 19.11 (Financial Covenant -
                    Leverage Ratio),

                    then the Parent will at its own expense, if so required by
                    the Facility Agent, instruct the Auditors (or other firm of
                    accountants selected by the Facility Agent) to discuss the
                    financial position of the Group with the Facility Agent and
                    to disclose to the Facility Agent and the Lenders (and
                    provide copies of) such information as the Facility Agent
                    may reasonably request regarding the financial condition and
                    business of the Group.

          (ii) If, having taken the steps in sub-paragraph (i) above, the
               Majority Lenders request so, the Facility Agent may instruct the
               Auditors (or other firm of accountants selected by the Facility
               Agent) to carry out an investigation at the Parent's expense into
               the affairs, the financial performance and/or the accounting and
               other reporting procedures and standards of the Group, and the
               Parent will procure that full co-operation is given to the
               Auditors or other firm of accountants so selected.

     (i)  OTHER INFORMATION

          The Parent will promptly deliver to the Facility Agent for
          distribution to the Lenders:

          (i)  details of any material litigation, arbitration, administrative
               or regulatory proceedings relating to it or any of its
               Subsidiaries;

          (ii) details of any material labour dispute affecting it or any of its
               Subsidiaries;

          (iii) at the same time as it is sent to its creditors, any other
               material document or information sent to any class of its
               creditors generally (excluding for this purpose creditors which
               are Group Companies) including all material documents or
               information provided by the Issuer or Finco to the High Yield
               Trustee or to the holders of the High Yield Notes (including
               early redemption notices);

          (iv) any other information relating to the financial condition or
               operation of any Group Company which the Facility Agent may from
               time to time reasonably request;

          (v)  details of any material breach of the provisions of any Supply
               Agreement or Service Contract of which it is aware; and

          (vi) copies of any material notice given or received under the Supply
               Agreements or the Service Contracts.

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     (j)  "KNOW YOUR CUSTOMER" CHECKS

          (i)  If:

               (A)  the introduction of or any change in (or in the
                    interpretation, administration or application of) any law or
                    regulation made after the date of this agreement;

               (B)  any change in the status of any member of the Group after
                    the date of this agreement; or

               (C)  a proposed assignment or transfer by a Lender of any of its
                    rights and obligations under this agreement to a party that
                    is not a Lender prior to such assignment or transfer,

               obliges the Facility Agent or any Lender (or, in the case of
               paragraph (C) above, any prospective new Lender) to comply with
               "know your customer" or similar identification procedures in
               circumstances where the necessary information is not already
               available to it, each member of the Group shall promptly upon the
               request of the Facility Agent or any Lender supply, or procure
               the supply of, such documentation and other evidence as is
               reasonably requested by the Facility Agent (for itself or on
               behalf of any Lender) or any Lender (for itself or, in the case
               of the event described in paragraph (C) above, on behalf of any
               prospective new Lender) in order for the Facility Agent, such
               Lender or, in the case of the event described in paragraph (C)
               above, any prospective new Lender to carry out and be satisfied
               it has complied with all necessary "know your customer" or other
               similar checks under all applicable laws and regulations pursuant
               to the transactions contemplated in the Finance Documents.

          (ii) Each Lender shall promptly upon the request of the Facility Agent
               supply, or procure the supply of, such documentation and other
               evidence as is reasonably requested by the Facility Agent (for
               itself) in order for the Facility Agent to carry out and be
               satisfied it has complied with all necessary "know your customer"
               or other similar checks under all applicable laws and regulations
               pursuant to the transactions contemplated in the Finance
               Documents.

19.11 FINANCIAL COVENANT - LEVERAGE RATIO

     The Parent undertakes that it will procure that the ratio of Total Net Debt
     as at each Testing Date to EBITDA for the Testing Period ending on that
     Testing Date shall not exceed 3.75:1 as at that Testing Date.

19.12 FINANCIAL DEFINITIONS

     For the purposes of clause 19.11 (Financial Covenant - Leverage Ratio):

     "CASH" means cash at bank credited to an account in the name of a Group
     Company with an Eligible Lender and to which that Group Company is
     beneficially entitled which is repayable on demand (or within 30 days of
     demand) without condition;

     "CASH EQUIVALENTS" means marketable debt securities with a maturity of
     three months or less and with a short-term debt rating of at least A1 +
     granted by Standard & Poor's Ratings Group (a division of The McGraw Hill
     Companies, Inc.) or Pl granted by Moody's Investors Services, Inc. to which
     a Group Company is beneficially entitled, and which can be realised by that
     Group Company without any significant delay;

     "EBITDA" means the consolidated profit of the Group for the relevant
     Testing Period:

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     (a)  before any deduction of corporation tax or other Taxes on income or
          gains;

     (b)  before any deduction for Interest Payable;

     (c)  after deducting (to the extent otherwise included) Interest
          Receivable;

     (d)  excluding extraordinary items;

     (e)  after deducting (to the extent otherwise included) the amount of
          profit (or adding back the amount of loss) of:

          (i)  any Group Company (other than the Parent) which is attributable
               to any third party (other than a Group Company) which is a
               shareholder in that Group Company; and

          (ii) any company or other person which is not a Group Company but
               whose profits or losses are taken into account in the calculation
               of the consolidated profit of the Group for that Testing Period;

     (f)  after adding back or deducting, as the case may be, the amount of any
          loss or gain against book value arising on a disposal of any asset
          (other than stock disposed of in the ordinary course of trading)
          during that Testing Period, to the extent included in arriving at
          EBITDA for that Testing Period;

     (g)  before deducting amortisation of any goodwill or any intangible
          assets;

     (h)  before deducting any depreciation on fixed assets;

     (i)  before amortisation of any Refinancing Costs; and

     (j)  after adding back or deducting, as the case may be, the variation of
          any provision during that Testing Period which does not have any cash
          impact;

     For the avoidance of doubt, "EBITDA" shall not be reduced by the
     Refinancing Costs incurred and paid by the Group during that Testing
     Period;

     "ELIGIBLE LENDER" means any bank or financial institution with a short-term
     debt rating of at least A1 granted by Standard & Poor's Ratings Group (a
     division of the McGraw Hill Companies, Inc.) or P1 granted by Moody's
     Investors Services, Inc.;

     "INTEREST" means interest and amounts in the nature of interest paid or
     payable in relation to any Financial Indebtedness including:

     (a)  the interest element of finance leases;

     (b)  discount and acceptance fees payable (or deducted) in relation to any
          Financial Indebtedness;

     (c)  fees payable in connection with the issue or maintenance of any bond,
          letter of credit, guarantee or other assurance against financial loss
          which constitutes Financial Indebtedness and is issued by a third
          party on behalf of a Group Company (but excluding Refinancing Costs);

     (d)  repayment and prepayment premiums payable or incurred in repaying or
          prepaying any Financial Indebtedness; and

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     (e)  commitment, utilisation and non-utilisation fees payable or incurred
          in relation to Financial Indebtedness (but excluding Refinancing
          Costs);

     "INTEREST PAYABLE" means the total of:

     (a)  Interest accrued (whether or not paid or capitalised) during the
          relevant Testing Period; and

     (b)  the amount of the discount element of any Financial Indebtedness
          amortised during that Testing Period,

     as an obligation of any Group Company during that period and adjusted for
     amounts payable and receivable under Derivative Instruments entered into
     for the purposes of managing or hedging interest rate risk;

     "INTEREST RECEIVABLE" means the amount of Interest accrued (including
     interest and/or dividends received by the Group during the relevant Testing
     Period under Cash Equivalent investments) due to Group Companies (other
     than by other Group Companies) during the relevant Testing Period which is
     freely available to meet the Group's payment obligations;

     "TESTING DATE" means the date specified in the relevant table as the date
     as at (or to) which a particular financial ratio is being tested;

     "TESTING PERIOD" means, subject to clause 19.14 (Calculation adjustments)
     each period which corresponds to the annual accounting reference period of
     the Parent or two consecutive Accounting Half-Years and ending on or about
     a Testing Date;

     "TOTAL NET DEBT" means, at any time, the aggregate outstanding principal or
     capital amount of all Financial Indebtedness of the Group calculated on a
     consolidated basis less Cash and Cash Equivalents owned by Group Companies,
     except that:

     (a)  in the case of any finance lease only the capitalised value of that
          finance lease (as determined in accordance with the Approved
          Accounting Principles) shall be included;

     (b)  in the case of any guarantee referred to in the definition of
          Financial Indebtedness in clause 1.1 (Definitions), the amount of that
          guarantee shall not be included, to the extent it relates to (a)
          indebtedness of another Group Company already included in the
          calculation of Total Net Debt;

     (c)  any Financial Indebtedness arising under any Equity Contribution
          (including under the UGI Bordeaux Letter of Undertakings) shall be
          excluded; and

     (d)  any amount drawn under the Revolving Facility shall be excluded.

19.13 CALCULATION

     (a)  The covenants contained in clause 19.11 (Financial Covenant - Leverage
          Ratio) will be tested by reference to the Annual Accounts and the
          Half-Year Accounts for the relevant Testing Period.

     (b)  If the Annual Accounts are not available when any covenant referred to
          in clause 19.13(a) is tested, but when those Annual Accounts become
          available, they show that the figures in any relevant Half-Year
          Accounts utilised for any such calculation cannot have been
          substantially accurate, the Facility Agent may require such
          adjustments to the calculations made or to be made which it, in its
          sole discretion, considers appropriate to rectify that inaccuracy and

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          compliance with the covenants in clause 19.11 (Financial Covenant -
          Leverage Ratio) will be determined by reference to those adjusted
          figures.

     (c)  The components of each definition used in clause 19.11 (Financial
          Covenant - Leverage Ratio) will be calculated in accordance with the
          Approved Accounting Principles, as varied by this agreement.

     (d)  For the avoidance of doubt, for the purpose of calculating the ratios
          referred to in clause 19.11 (Financial Covenant - Leverage Ratio),
          each component of such ratios shall not double-count the same amount
          in the same calculation.

19.14 CALCULATION ADJUSTMENTS

     For the purpose of determining compliance with the financial covenants in
     clause 19.11 (Financial covenant - Leverage Ratio) if the Group acquires a
     company or companies (having obtained any necessary consent under this
     agreement to do so), until the first Testing Date which falls more than 12
     months after the relevant company or companies became Subsidiaries of the
     Parent, the results of such company or companies will be deemed included
     with those of the rest of the Group for the full duration of the relevant
     Testing Period as if such company or companies had become a Group Company
     at the commencement of the Testing Period. Any necessary aggregation of
     their results will be confirmed by the Auditors and will not include any
     synergy benefits expected (save as provided in the definition of Permitted
     Acquisition in clause 1.1 (Definitions)) to be achieved as a result of the
     acquisition of such company or companies.

20.  EVENTS OF DEFAULT

20.1 LIST OF EVENTS

     Each of the events set out in this clause 20.1 constitutes an Event of
     Default, whether or not the occurrence of the event concerned is outside
     the control of any Group Company.

     (a)  PAYMENT DEFAULT

          Any Obligor fails to pay within five Business Days' of the due date
          any amount payable by it under any Senior Finance Document at the
          place at which and in the currency in which it is expressed to be
          payable.

     (b)  BREACH OF OTHER OBLIGATIONS

          (i)  Any Obligor fails to comply with any of its obligations under
               clauses 19.3 (Disposals and security undertakings) to 19.5
               (Financing arrangement undertakings) (inclusive) (except clause
               19.5(e)) or 19.11 (Financial Covenant - Leverage Ratio) (whether
               or not the relevant obligation is enforceable against that Group
               Company).

          (ii) Any Group Company fails to comply with any of its obligations
               under any Senior Finance Document (whether or not the relevant
               obligation is enforceable against that Group Company), other than
               those specified in clause 20.1(a) (Payment default) or clause
               20.1(b)(i) and, if that failure is in the opinion of the Facility
               Agent capable of remedy, it is not remedied within 15 Business
               Days of the earlier of:

               (A)  the Facility Agent notifying the Parent of that default; and

               (B)  any Group Company becoming aware of such failure.

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     (c)  MISREPRESENTATION

          Any representation, warranty or statement which is made by any Group
          Company in any Senior Finance Document or is contained in any
          certificate, statement or notice provided under or in connection with
          any Senior Finance Document is incorrect in any material respect when
          made (or when deemed to be made or repeated) and, if the circumstances
          giving rise to that default are in the opinion of the Facility Agent
          capable of remedy, they are not remedied within 15 Business Days of
          the earlier of:

          (i)  the Facility Agent notifying the Parent of that default; and

          (ii) any Group Company becoming aware of such misrepresentation.

     (d) INVALIDITY AND UNLAWFULNESS

          (i)  Any provision of any Senior Finance Document is or becomes
               invalid or unenforceable for any reason or is repudiated or the
               validity or enforceability of any provision of any Senior Finance
               Document is contested by any person or any party to any Senior
               Finance Document (other than a Finance Party) denies the
               existence of any liability or obligation on its part under any
               Senior Finance Document.

          (ii) It is or becomes unlawful under any applicable jurisdiction for
               any Group Company to perform any of its obligations under any
               Senior Finance Document.

          (iii) Any act, condition or thing required to be done, fulfilled or
               performed in order to:

               (A)  enable any Group Company lawfully to enter into, exercise
                    its rights under and perform the obligations expressed to be
                    assumed by it under any Finance Document to which it is
                    party;

               (B)  ensure that the obligations expressed to be assumed by any
                    Group Company under any Finance Document to which it is
                    party are legal, valid and binding (save for obligations
                    subject to qualifications as to matters of law contained in
                    the legal opinions referred to in paragraph 9 of schedule
                    3);

               (C)  make each any Finance Document admissible in evidence in the
                    courts of France or the jurisdiction in which any Group
                    Company is incorporated (other than certified translations
                    of the Finance Documents into French); and

               (D)  create the security constituted by the Security Documents to
                    which any Group Company is party,

               is not done, fulfilled or performed.

     (e)  INSOLVENCY

          (i)  The Parent or any Material Company stops or suspends or
               threatens, or announces an intention to stop or suspend, payment
               of its debts (including cessation des paiements, whether pursuant
               to the applicable provisions of the French Commercial Code or
               otherwise).

          (ii) The Parent or any Material Company is, for the purpose of any
               applicable law, deemed to be unable, or admits its inability, to
               pay its debts as they fall due or becomes insolvent or a
               moratorium (sursis de paiements) is declared in relation to any
               indebtedness of any Group Company.

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     (f)  RECEIVERSHIP AND ADMINISTRATION

          (i)  Any encumbrancer takes possession of, or a receiver or
               administrator or similar officer (including a conciliateur or an
               administrateur provisoire or a mandataire ad hoc) is appointed
               over or in relation to, all or any part of the assets of the
               Parent or any Material Company.

          (ii) A petition is presented, a meeting is convened, an application is
               made or any other step is taken for the purpose of appointing an
               administrator or receiver or other similar officer (including a
               conciliateur or an administrateur provisoire or a mandataire ad
               hoc) of, or for the making of an administration order in relation
               to the Parent or any Material Company (including the opening of
               any redressement judiciaire or procedure de sauvegarde), in each
               case unless such proceedings are discharged or stayed within 15
               days.

     (g)  COMPOSITIONS AND ARRANGEMENTS

          (i)  The Parent or any Material Company convenes a meeting of its
               creditors generally or proposes or makes any arrangement or
               composition with, or any assignment for the benefit of, its
               creditors generally.

          (ii) The Parent or any Material Company proposes or enters into any
               negotiations for or in connection with the rescheduling,
               restructuring or re-adjustment of any indebtedness by reason of,
               or with a view to avoiding, financial difficulties.

     (h)  WINDING UP

          (i)  Any meeting of the Parent or any Material Company is convened for
               the purpose of considering any resolution for (or to petition
               for) its winding up (liquidation judiciaire or amiable) or passes
               such a resolution (other than as a result of a permitted
               amalgamation).

          (ii) A petition is presented for the winding up of the Parent or any
               Material Company which is not discharged or stayed within 30
               days.

          (iii) An order is made for the winding up of the Parent or any
               Material Company.

     (i)  ATTACHMENT OR PROCESS

          A creditor attaches or takes possession of (mesure de saisie) or a
          distress, execution, (execution forcee), sequestration or other
          process is levied or enforced upon or sued out against all or any part
          of the assets the aggregate value of which exceeds EUR 3,000,000 (or
          its equivalent in other currencies) of the Parent or any Material
          Company and in each case such proceedings are not discharged or stayed
          within 30 days, save where that Group Company is in good faith
          contesting such attachment, sequestration, distress or execution
          before a competent court and these proceedings do not and are not
          likely to affect the ability of any Obligor to comply with its
          obligations under the Senior Finance Documents.

     (j)  SUSPENSION OF PAYMENTS

          Any order is made, any resolution is passed or any other action is
          taken for the suspension of payments, protection from creditors or
          bankruptcy of the Parent or any Material Company.

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     (k)  SIMILAR EVENTS ELSEWHERE

          There occurs in relation to the Parent or any Material Company or any
          of its assets in any country or territory in which it is incorporated
          or carries on business or to the jurisdiction of whose courts it or
          any of its assets is subject any event which appears to the Facility
          Agent to correspond in that country or territory with any of those
          mentioned in clauses 20.1(e) (Insolvency) to 20.1(j) (Suspension of
          payments) (inclusive), it being agreed that any such events shall be
          subject, to the extent permitted by applicable law, to the same cure
          periods, remedies and other qualifying terms set out in these clauses
          (if any).

     (l)  CESSATION OF BUSINESS

          The Parent or any Material Company ceases, or threatens or proposes to
          cease to carry on all or a substantial part of its business (cessation
          totale ou partielle de l'entreprise) other than as a result of a
          transfer of all or any part of its business to a Group Company as
          permitted by this agreement.

     (m)  COMPULSORY ACQUISITION

          All or any part of the assets of the Parent or any Material Company
          which are necessary to the business of the Group are seized,
          nationalised, expropriated or compulsorily acquired by, or by the
          order of, any central or local governmental authority in relation to
          which full market value compensation is not paid.

     (n)  SECURITY INTERESTS

          Any Security Interest affecting the business, undertaking or any of
          the assets of the Parent or any Material Company and securing
          indebtedness exceeding EUR 3,000,000 (or its equivalent in other
          currencies) in aggregate becomes enforceable and steps are taken to
          enforce the same which are not withdrawn or stayed within 30 days save
          where that Group Company is in good faith contesting these steps by
          appropriate proceedings and these steps do not and are not likely to
          affect the ability of any Obligor to comply with its obligations under
          the Senior Finance Documents.

     (o)  CROSS DEFAULT

          Any Financial Indebtedness of any Group Company or Group Companies
          exceeding EUR 3,000,000 (or its equivalent in other currencies) in
          aggregate:

          (A)  is not paid when due or within any originally applicable grace
               period in any agreement relating to that Financial Indebtedness;
               or

          (B)  becomes due and payable (or capable of being declared due and
               payable but in this case unless the existence of the relevant
               event of default is being contested in good faith by the relevant
               Group Company before the relevant court) before its normal
               maturity or is placed on demand (or any commitment for any such
               indebtedness is cancelled or suspended) by reason of a default or
               event of default (however described).

     (p)  LITIGATION

          Any litigation, arbitration or administrative proceeding is commenced
          by or against any Group Company which is reasonably likely to be
          resolved against the relevant Group Company and, if so resolved, could
          reasonably be expected to have a Material Adverse Effect.

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     (q)  INTERCREDITOR BREACH

          The Parent fails to comply with its obligations under the
          Intercreditor Agreement or the Intercreditor Agreement ceases to be
          binding upon any such party for whatever reason, in each case in a
          manner which could reasonably be expected to prejudice the interests
          of the Finance Parties under the Senior Finance Documents.

     (r)  AUDITORS' QUALIFICATION

          The Auditors qualify their report on any Annual Accounts in any manner
          which could reasonably be expected to prejudice the interests of the
          Finance Parties under the Senior Finance Documents.

     (s)  MATERIAL CONTRACTS

          (i)  Any Material Contract is terminated or otherwise ceases to be in
               full force and effect (other than on expiry under its terms, as
               in force at the date of this agreement).

          (ii) Any amendment is made to any Material Contract without the prior
               consent of the Majority Lenders which could reasonably be
               expected to be materially adverse to the interests of the Finance
               Parties under the Senior Finance Documents.

          (iii) Any Group Company breaches any term of or repudiates any of its
               obligations under any Material Contract the result of which could
               reasonably be expected to be materially adverse to the interests
               of the Finance Parties under the Senior Finance Documents.

     (t)  TAX CONSOLIDATION

          (i)  The Group loses, for whatever reason (including as a result of
               any change of law or interpretation in law) the benefit of the
               tax consolidation regime (integration fiscale) for the Group and
               UGI Bordeaux, unless, within 30 days of the occurrence of the
               relevant event causing the loss of the tax consolidation regime,
               the Parent has provided written details to the Facility Agent of
               a solution to that loss which is satisfactory to the Majority
               Lenders (acting reasonably).

          (ii) An amendment or waiver is made to the Tax Consolidation Agreement
               without the prior consent of the Majority Lenders, which could
               reasonably be expected to be materially adverse to the interests
               of the Finance Parties under the Senior Finance Documents.

     (u)  UGI BORDEAUX

          UGI Bordeaux fails to comply with any of its obligations under the UGI
          Bordeaux Letter of Undertakings.

     (v)  MATERIAL ADVERSE EFFECT

          At any time there occurs any event or default not mentioned in any of
          the provisions of this clause 20.1 which, in the opinion of the
          Majority Lenders, could reasonably be expected to have a Material
          Adverse Effect.

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20.2 CANCELLATION AND REPAYMENT

     Subject to Clause 20.3 (Certain Funds Period), at any time after the
     occurrence of an Event of Default (and for so long as it is continuing),
     the Facility Agent may, and will if so directed by the Majority Lenders, by
     notice to the Parent do all or any of the following, in addition and
     without prejudice to any other rights or remedies which it or any other
     Finance Party may have under any other Senior Finance Document:

     (a)  terminate the availability of the Facilities, whereupon the Facilities
          shall cease to be available for drawing, the undrawn portion of the
          Commitments of each of the Lenders shall be cancelled and no Lender
          shall be under any further obligation to make Advances or issue Bank
          Guarantees; and/or

     (b)  declare all or any Advances, accrued interest on those Advances and
          any other amounts then payable under any Senior Finance Document to be
          immediately due and payable, whereupon those amounts shall become so
          due and payable; and/or

     (c)  declare all or any Advances to be payable on demand, whereupon those
          Advances shall become payable on demand; and/or

     (d)  require the provision of cash cover in relation to all or any
          outstanding Contingent Liabilities, whereupon each Borrower shall
          immediately provide cash cover in an amount equal to the total
          Contingent Liability of the Lenders under all Bank Guarantees issued
          for the account of the Borrowers.

20.3 CERTAIN FUNDS PERIOD

     The Lenders will not exercise any rights of rescission, cancellation or
     termination, whether pursuant to Clause 20.2 (Cancellation and Repayment)
     or otherwise or any rights of set-off or counterclaim under the Senior
     Finance Documents before the end of the Certain Funds Period. Once the
     conditions precedent under clause 4.1 (Initial conditions precedent) have
     been satisfied, the Lenders shall only be entitled to decline to make
     available the first Advance under the Senior Finance Documents in respect
     of any drawing the purpose of which is to fund the Refinancing during the
     Certain Funds Period by reason of any of the following events:

     (a)  any Sale, Listing or Change of Control (each as described in clause
          11.3 (Sale, Change of Control, Listing) occurs;

     (b)  the Parent and/or Antargaz cancelling, rescinding or purporting to
          rescind the Facilities (including, without limitation, under clause
          11.9 (Cancellation of Term Facility) or 11.10 (Cancellation of
          Revolving Facility)) in the case of any cancellation to the extent of
          the amount so cancelled;

     (c)  any breach of the representations and warranties contained in clauses
          18.2 (Incorporation), 18.3 (Power and capacity) or 18.4
          (Authorisation) (to the extent that the breach of such representations
          and warranties relate to an Obligor);

     (d)  any breach of the undertaking contained in clauses 19.2(c)
          (Amalgamations), 19.2(f) (Pari-passu ranking), 19.4 (Acquisitions and
          investment undertakings) (to the extent that such breach of that
          clause could reasonably be expected to have a Material Adverse
          Effect), 19.5(a) (Borrowings) (to the extent that such breach of that
          clause could reasonably be expected to have a Material Adverse
          Effect), 19.5(b) (Guarantees) (to the extent that such breach of that
          clause could reasonably be expected to have a Material Adverse
          Effect), 19.5(c) (Loans) (to the extent that such breach of that
          clause could reasonably be expected to have a Material

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          Adverse Effect), 19.2(e) (Changes to Constitutional Documents),
          19.9(a) (Shares Issues), 19.9(b) (Redemption and Acquisition of Own
          Shares) or 19.9(c) (Cash Movement);

     (e)  any of the Events of Default referred to in clause 20.1(d) (Invalidity
          and unlawfulness) occurring and is continuing by reason of
          circumstances relating to the Parent only or as a result of a change
          of any law or regulation occurring during the Certain Funds Period;

     (f)  any of the Events of Default referred to in clauses 20.1(e)
          (Insolvency) to 20.1(k) (Similar events elsewhere) occurring and is
          continuing;

     (g)  any of the events described in clause 14.2 (Illegality) occurs as a
          result of a change of any law or regulation occurring during the
          Certain Funds Period.

21.  THE AGENTS AND THE OTHER FINANCE PARTIES

21.1 AGENTS' APPOINTMENT

     (a)  Each Lender:

          (i)  appoints Calyon as Facility Agent to act as its agent under and
               in connection with the Senior Finance Documents and as Security
               Agent to act as its security agent for the purposes of the
               Security Documents and to execute the Security Documents on its
               behalf; and

          (ii) irrevocably authorises each Agent for and on its behalf to
               exercise the rights, powers and discretions which are
               specifically delegated to it by the terms of the Senior Finance
               Documents, together with all rights, powers and discretions which
               are incidental thereto and to give a good discharge for any
               monies payable under the Senior Finance Documents.

     (b)  Each Agent will act solely as agent for the Lenders in carrying out
          its functions as agent under the Senior Finance Documents and will
          exercise the same care as it would in dealing with a credit for its
          own account.

     (c)  The relationship between the Lenders and each Agent is that of
          principal and agent only. No Agent shall have, nor be deemed to have,
          assumed any obligations to, or trust or fiduciary relationship with,
          the other Finance Parties or any Obligor, other than those for which
          specific provision is made by the Senior Finance Documents.

21.2 AGENTS' DUTIES

     Each Agent shall:

     (a)  send to each Lender details of each communication delivered to the
          Agent by an Obligor for that Lender under any Senior Finance Document
          as soon as reasonably practicable after receipt;

     (b)  subject to those provisions of this agreement which require the
          consent of all the Lenders, act in accordance with any instructions
          from the Majority Lenders or, if so instructed by the Majority
          Lenders, refrain from exercising a right, power or discretion vested
          in it under any Senior Finance Document;

     (c)  have only those duties, obligations and responsibilities expressly
          specified in the Senior Finance Documents; and

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     (d)  without prejudice to clause 21.6(c) (Communications and information),
          promptly notify each Lender:

          (i)  of any Default which occurs under clause 20.1(a) (Payment
               default); and

          (ii) if the Agent receives notice from an Obligor referring to this
               agreement, describing a Default and stating that the circumstance
               described is a Default.

21.3 AGENTS' RIGHTS

     Each Agent may:

     (a)  perform any of its duties, obligations and responsibilities under the
          Senior Finance Documents by or through its personnel, delegates or
          agents (on the basis that each Agent may extend the benefit of any
          indemnity received by it under this agreement to its personnel,
          delegates or agents);

     (b)  except as expressly provided to the contrary in any Senior Finance
          Document, refrain from exercising any right, power or discretion
          vested in it under the Senior Finance Documents until it has received
          instructions from the Majority Lenders or, where relevant, all the
          Lenders;

     (c)  unless it has received notice to the contrary, treat the Lender which
          makes available any portion of a Drawing as the person entitled to
          repayment of that portion;

     (d)  refrain from doing anything which would or might in its opinion be
          contrary to any law, regulation or judgement of any court of any
          jurisdiction or otherwise render it liable to any person and may do
          anything which is in its opinion necessary to comply with any such
          law, regulation or judgement;

     (e)  assume that no Default has occurred, unless an officer of that Agent
          while active on the account of the Parent acquires actual knowledge to
          the contrary;

     (f)  refrain from taking any step (or further step) to protect or enforce
          the rights of any Lender under any Senior Finance Document until it
          has been indemnified and/or secured to its satisfaction against all
          losses, (including legal fees) which it would or might sustain or
          incur as a result;

     (g)  rely on any communication or document believed by it to be genuine and
          correct and to have been communicated or signed by the person to whom
          it purports to be communicated or by whom it purports to be signed;

     (h)  rely as to any matter of fact which might reasonably be expected to be
          within the knowledge of any Group Company in a statement by or on
          behalf of that Group Company;

     (i)  obtain and pay for any legal or other expert advice or services which
          may seem necessary or desirable to it and rely on any such advice;

     (j)  accept without enquiry any title which an Obligor may have to any
          asset intended to be the subject of the security created by the
          Security Documents; and

     (k)  hold or deposit any title deeds, Security Documents or any other
          documents in connection with any of the assets charged by the Security
          Documents with any banker or banking company or any company whose
          business includes undertaking the safe custody of deeds or

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          documents or with any lawyer or firm of lawyers and it shall not be
          responsible for or be required to insure against any loss incurred in
          connection with any such holding or deposit and it may pay all amounts
          required to be paid on account or in relation to any such deposit.

21.4 EXONERATION OF THE ARRANGER AND THE AGENTS

     None of the Arranger, the Agents or any of their respective personnel or
     agents shall be:

     (a)  responsible for the adequacy, accuracy or completeness of any
          representation, warranty, statement or information in the Syndication
          Memorandum, any Senior Finance Document or any notice or other
          document delivered under any Senior Finance Document;

     (b)  responsible for the execution, delivery, validity, legality, adequacy,
          enforceability or admissibility in evidence of any Senior Finance
          Document;

     (c)  obliged to enquire as to the occurrence or continuation of a Default
          or as to the accuracy or completeness of any representation or
          warranty made by any Obligor under any Senior Finance Document;

     (d)  responsible for any failure of any Obligor or any of the Lenders duly
          and punctually to observe and perform their respective obligations
          under any Senior Finance Document;

     (e)  responsible for the consequences of relying on the advice of any
          professional advisers selected by any of them in connection with any
          Senior Finance Document;

     (f)  liable for acting (or refraining from acting) in what it believes to
          be in the best interests of the Lenders in circumstances where it has
          been unable, or it is not practicable, to obtain the instructions of
          the Lenders or the Majority Lenders (as the case may be); or

     (g)  liable for anything done or not done by it under or in connection with
          any Senior Finance Document, save in the case of its own gross
          negligence or wilful misconduct or by a material breach of any of its
          Obligations under the Senior Finance Documents.

21.5 THE ARRANGER AND THE AGENTS INDIVIDUALLY

     (a)  If it is a Lender, the Arranger and each of the Agents shall have the
          same rights and powers under the Senior Finance Documents as any other
          Lender and may exercise those rights and powers as if it were not also
          acting as an Arranger or an Agent.

     (b)  The Arranger and the Agents may:

          (i)  retain for its own benefit and without liability to account any
               fee or other amount receivable by it for its own account; and

          (ii) accept deposits from, lend money to, provide any advisory, trust
               or other services to or engage in any kind of banking or other
               business with any party to this agreement or any subsidiary of
               any party (and, in each case, may do so without liability to
               account).

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21.6 COMMUNICATIONS AND INFORMATION

     (a)  All communications to an Obligor in connection with the Senior Finance
          Documents are to be made by or through the Facility Agent. Each
          Finance Party will notify the Facility Agent of, and provide the
          Facility Agent with a copy of, any communication between that Finance
          Party, an Obligor or any other Finance Party on any matter concerning
          the Facilities or the Senior Finance Documents.

     (b)  No Agent will be obliged to transmit to any other Finance Party any
          information relating to any party to any Senior Finance Document which
          that Agent may have acquired otherwise than in connection with the
          Facilities or the Senior Finance Documents. Notwithstanding anything
          to the contrary expressed or implied in any Senior Finance Document,
          no Agent shall, as between itself and the other Finance Parties, be
          bound to disclose to any other Finance Party or other person any
          information, disclosure of which might in the opinion of that Agent
          result in a breach of any law or regulation or be otherwise actionable
          at the suit of any person or any information supplied by any Group
          Company to any Agent which is identified by such Group Company at the
          time of supply as being unpublished, confidential or price sensitive
          information relating to a proposed transaction by a Group Company and
          supplied solely for the purpose of evaluating in consultation with the
          relevant Agent whether such transaction might require a waiver or
          amendment to any of the provisions of the Senior Finance Documents.

     (c)  In acting as agent for the Lenders, each Agent's banking division will
          be treated as a separate entity from any other of its divisions (or
          similar unit of that Agent in any subsequent re-organisation) or
          subsidiaries (the "OTHER DIVISIONS") and, if the relevant Agent acts
          for any Group Company in a corporate finance or other advisory
          capacity ("ADVISORY CAPACITY"), any information given by any Group
          Company to one of the Other Divisions is to be treated as confidential
          and will not be available to the Finance Parties without the consent
          of the Parent, except that:

          (i)  the consent of the Parent will not be required in relation to any
               information which the relevant Agent in its discretion determines
               relates to a Default or in relation to which the Lenders have
               given a confidentiality undertaking in a form satisfactory to
               that Agent and the relevant Group Company (acting reasonably);
               and

          (ii) if representatives or employees of the relevant Agent receive
               information in relation to a Default whilst acting in an Advisory
               Capacity, they will not be obliged to disclose that information
               to representatives or employees of that Agent in their capacity
               as agent bank or security agent under this agreement or to any
               Lender, if to do so would breach any rule or regulation or
               fiduciary duty imposed upon those persons.

21.7 NON-RELIANCE ON THE ARRANGER AND THE AGENTS

     Each Lender confirms that it is (and will at all times continue to be)
     solely responsible for making its own independent investigation and
     appraisal of the business, operations, financial condition,
     creditworthiness, status and affairs of each Group Company and has not
     relied, and will not at any time rely, on the Arranger or any Agent:

     (a)  to provide it with any information relating to the business,
          operations, financial condition, creditworthiness, status and affairs
          of any Group Company, whether coming into its possession before or
          after the making of any Advance, except as specifically provided
          otherwise in this agreement; or

     (b)  to check or enquire into the adequacy, accuracy or completeness of any
          information provided by any Group Company under or in connection with
          any Senior Finance Document (whether

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          or not that information has been or is at any time circulated to it by
          the Arranger or an Agent), including that contained in the Syndication
          Memorandum; or

     (c)  to assess or keep under review the business, operations, financial
          condition, creditworthiness, status or affairs of any Group Company.

21.8 AGENTS' INDEMNITY

     (a)  Each Lender shall on demand indemnify each Agent (in proportion to
          that Lender's participation in the Drawings (or the Total Commitments
          if there are no Drawings outstanding) at the relevant time) against
          any loss incurred by the relevant Agent in complying with any
          instructions from the Lenders or the Majority Lenders (as the case may
          be) or otherwise sustained or incurred in connection with the Senior
          Finance Documents or its duties, obligations and responsibilities
          under the Senior Finance Documents, except to the extent that it is
          incurred as a result of the gross negligence or wilful misconduct of
          the relevant Agent or any of its personnel.

     (b)  The provisions of clause 21.8(a) are without prejudice to any
          obligations of the Obligors to indemnify the Agents under the Senior
          Finance Documents.

21.9 TERMINATION AND RESIGNATION OF AGENCY

     (a)  An Agent (a "RETIRING AGENT") may resign its appointment at any time
          by giving notice to the Lenders and the Parent.

     (b)  A successor Agent (a "SUCCESSOR AGENT") shall be selected:

          (i)  by the Retiring Agent nominating one of its Affiliates following
               consultation with the Parent as Successor Agent in its notice of
               resignation; or

          (ii) if the Retiring Agent makes no such nomination, by the Majority
               Lenders nominating a Lender acting through an office in France as
               Successor Agent (following consultation with the Parent); or

          (iii) if the Majority Lenders have failed to nominate a Successor
               Agent within 30 days of the date of the Retiring Agent's notice
               of resignation, by the Retiring Agent (following consultation
               with the Parent) nominating a financial institution of good
               standing acting through an office in France to be the Successor
               Agent.

     (c)  The Majority Lenders may at any time with the prior consent of the
          Parent, such consent not to be unreasonably withheld or delayed, by 30
          days' prior notice to the relevant Agent and the Parent terminate the
          appointment of an Agent and appoint a Successor Agent.

     (d)  The resignation of the Retiring Agent and the appointment of the
          Successor Agent will become effective only upon the Successor Agent
          accepting its appointment as Agent (and, in the case of the Security
          Agent's resignation, upon the execution of all agreements and
          documents necessary to substitute its successor as holder of the
          security comprised in the Security Documents), at which time:

          (i)  the Successor Agent will become bound by all the obligations of
               the Facility Agent or Security Agent (as the case may be) and
               become entitled to all the rights, privileges, powers,
               authorities and discretions of that Agent under the Senior
               Finance Documents;

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          (ii) the agency of the Retiring Agent will terminate (but without
               prejudice to any liabilities which the Retiring Agent may have
               incurred prior to the termination of its agency); and

          (iii) the Retiring Agent will be discharged from any further liability
               or obligation under or in connection with the Senior Finance
               Documents (except that the Retiring Agent shall pay to the
               Successor Agent a pro rata proportion of the agency fee referred
               to in clause 15.2 (Agency fee) for the 12 month period in
               relation to which that agency fee was most recently paid).

     (e)  The Retiring Agent will co-operate with the Successor Agent in order
          to ensure that its functions are transferred to the Successor Agent
          without disruption to the service provided to the Parent and the
          Lenders and will, as soon as practicable following the Successor
          Agent's appointment, make available to the Successor Agent the
          documents and records which have been maintained in connection with
          the Senior Finance Documents in order that the Successor Agent is able
          to discharge its functions.

     (f)  The provisions of this agreement will continue in effect for the
          benefit of any Retiring Agent in relation to any actions taken or
          omitted to be taken by it or any event occurring before the
          termination of its agency.

21.10 ROLE OF THE SECURITY AGENT

     The Security Agent shall hold the benefit of the Security Documents as
     agent for itself and the other Finance Parties and will apply all payments
     and other benefits received by it under the Security Documents in
     accordance with the provisions of the relevant Security Documents and this
     agreement.

21.11 PAYMENTS TO FINANCE PARTIES

     (a)  Each Agent will account to each other Finance Party for its due
          proportions of all amounts received by that Agent for that Finance
          Party, whether by way of repayment of principal or payment of
          interest, commitment commission, fees or otherwise.

     (b)  Each Agent may retain for its own use and benefit, and will not be
          liable to account to any other Finance Party for all or any part of,
          any amounts received by way of agency or arrangement fee or by way of
          reimbursement of expenses incurred by it.

21.12 CHANGE OF OFFICE OF AGENT

     An Agent may at any time in its sole discretion by notice to the Parent and
     each other Finance Party designate a different office in France from which
     its duties as the relevant Agent will be performed from the date of
     notification.

22.  PRO RATA PAYMENTS

22.1 RECOVERIES

     If any amount owing by any Obligor under any Senior Finance Document to a
     Lender (the "RECOVERING LENDER") is discharged by payment, set-off or any
     other manner other than through the Facility Agent in accordance with
     clause 12 (Payments) (that amount being referred to in this clause 22.1 as
     a "RECOVERY") then:

     (a)  within two Business Days of receipt of the Recovery, the Recovering
          Lender shall pay to the Facility Agent an amount equal (or equivalent)
          to that Recovery;

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     (b)  the Facility Agent shall treat that payment as if it was part of the
          payment to be made by the relevant Obligor to the Lenders rateably in
          accordance with their respective Commitments; and

     (c)  (except for any receipt by the Recovering Lender as a result of the
          operation of clause 23.1(b)) as between the relevant Obligor and the
          Recovering Lender, the Recovery shall be treated as not having been
          paid.

22.2 NOTIFICATION OF RECOVERY

     Each Lender will notify the Facility Agent as soon as reasonably
     practicable of any Recovery by that Lender, other than by payment through
     the Facility Agent. If any Recovery subsequently has to be wholly or partly
     refunded by the Recovering Lender which paid an amount equal to that
     Recovery to the Facility Agent under clause 22.1(a) (Recoveries), each
     Lender to which any part of that amount was distributed will, on request
     from the Recovering Lender, repay to the Recovering Lender that Lender's
     pro rata share of the amount which has to be refunded by the Recovering
     Lender.

22.3 INFORMATION

     Each Lender will on request supply to the Facility Agent any information
     which the Facility Agent may from time to time request for the purpose of
     this clause 22.

22.4 EXCEPTIONS TO SHARING OF RECOVERIES

     Notwithstanding the foregoing provisions of this clause 22.1, no Recovering
     Lender will be obliged to share any Recovery which it receives as a result
     of legal proceedings taken by it to recover any amounts owing to it under
     the Senior Finance Documents with any other party which has a legal right
     to, but does not, either join in those proceedings or commence and
     diligently pursue separate proceedings to enforce its rights in the same or
     another court (unless the proceedings instituted by the Recovering Lender
     are instituted by it without prior notice having been given to that other
     party through the Facility Agent).

22.5 SEVERAL OBLIGATIONS

     Failure by any Recovering Lender to comply with any of the provisions of
     this clause 22 will not release any other Recovering Lender from any of its
     obligations or liabilities under this clause 22.

22.6 OBTAINING CONSENTS

     Each party to this agreement shall take all steps required of it under
     clause 22.1 (Recoveries) and use its reasonable endeavours to obtain any
     consents or authorisations which may be required in relation to any payment
     to be made by it under this clause 22.

22.7 NO SECURITY

     The provisions of this clause 22 shall not, and shall not be construed so
     as to, constitute a charge by any Lender over all or any part of any amount
     received or recovered by it under any of the circumstances mentioned in
     this clause 22.

23.  SET-OFF

23.1 SET-OFF RIGHTS

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     Any Finance Party may at any time after an Event of Default has occurred
     (without notice to the relevant Obligor):

     (a)  set-off or otherwise apply amounts standing to the credit of any
          Obligor's accounts with that Finance Party; and

     (b)  set-off any other obligations (then due for performance) owed by that
          Finance Party to the relevant Obligor,

     against any liability of the relevant Obligor to the relevant Finance Party
     under the Senior Finance Documents which is due but unpaid.

23.2 DIFFERENT CURRENCIES

     A Finance Party may exercise its rights under clause 23.1 (Set-off rights)
     notwithstanding that the amounts concerned may be expressed in different
     currencies and each Finance Party is authorised to effect any necessary
     conversions at a market rate of exchange selected by it.

24.  NOTICES

24.1 MODE OF SERVICE

     (a)  Except as specifically provided otherwise in this agreement, any
          notice, demand, consent, agreement or other communication (a "NOTICE")
          to be served under or in connection with any Senior Finance Document
          will be in writing and will be made by letter or by facsimile
          transmission to the party to be served.

     (b)  The address and facsimile number of each party to this agreement for
          the purposes of clause 24.1(a) are:

          (i)  the address and facsimile number shown immediately after its name
               on the signature pages of this agreement (in the case of any
               person who is a party as at the date of this agreement);

          (ii) the address and facsimile number notified by that party for this
               purpose to the Facility Agent on or before the date it becomes a
               party to this agreement (in the case of any person who becomes a
               party after the date of this agreement); or

          (iii) any other address and facsimile number notified by that party
               for this purpose to the Facility Agent by not less than five
               Business Days' notice.

     (c)  Any Notice to be served by any Obligor on a Finance Party will be
          effective only if it is expressly marked for the attention of the
          department or officer (if any) specified in conjunction with the
          relevant address and facsimile number referred to in clause 24.1(b).

24.2 DEEMED SERVICE

     (a)  Subject to clause 24.2(b), a Notice will be deemed to be given as
          follows:

          (i)  if by letter, when delivered personally or on actual receipt; and

          (ii) if by facsimile, when delivered.

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     (b)  A Notice given in accordance with clause 24.2(a) but received on a
          non-working day or after business hours in the place of receipt will
          only be deemed to be given on the next working day in that place.

24.3 LANGUAGE

     (a)  Any Notice must be in English.

     (b)  All other documents provided under or in connection with any Senior
          Finance Document must be:

          (i)  in English; or

          (ii) if not in English, accompanied by a certified English translation
               in which case, the English translation will prevail unless the
               document is a constitutional, statutory or other official
               document.

25.  CONFIDENTIALITY

     Subject to clause 26.8 (Disclosure of information), the parties will keep
     the Senior Finance Documents, the Syndication Memorandum and their subject
     matter and any matter relating thereto (including all details relating to
     the structure and financing of the Acquisition) confidential, except to the
     extent that they are required by law or regulation to disclose the same.
     Each Finance Party agrees with each Obligor to hold confidential all
     information which it acquires under or in connection with the Senior
     Finance Documents, except to the extent it is required by law or regulation
     to disclose it or it comes into the public domain (otherwise than as a
     result of a breach of this clause 25). A Finance Party may, however,
     disclose any such information to its auditors, legal advisers or other
     professional advisers (the "ADVISERS") for any purpose connected with the
     Senior Finance Documents, provided that the relevant Finance Party takes
     reasonable steps to procure that each Adviser maintains the confidentiality
     of that information.

26.  CHANGES TO PARTIES

26.1 ASSIGNMENT BY THE OBLIGORS

     No Obligor may assign or transfer all or any part of its rights, benefits
     or obligations under any Senior Finance Document.

26.2 ASSIGNMENTS AND TRANSFERS BY LENDERS

     (a)  A Lender (in this capacity the "TRANSFEROR") may, subject to Clause
          26.2(b) after prior consultation with the Parent at any time assign
          any of its rights under any Senior Finance Document or transfer any of
          its rights and obligations under any Senior Finance Document to any
          person (a "TRANSFEREE"), provided that:

          (i)  in the case of an assignment or transfer by a Lender of part (but
               not all) of its Commitments to a Transferee which is not, at the
               time of the assignment or transfer, an existing Lender, the
               aggregate amount of the Commitments of that Lender subject to
                that assignment or transfer is at least EUR 2,500,000;

          (ii) the Transferee has executed a Creditor Accession Agreement;

          (iii) in the case of an assignment, it is made in accordance with
               clause 26.3 (Assignments by Lenders);

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          (iv) in the case of a transfer, it is made in accordance with clause
               26.4 (Transfers by Lenders); and

          (v)  in the case of a transfer of the Revolving Facility, each Issuing
               Lender has approved the Transferee (such approval not to be
               unreasonably withheld or delayed).

     (b)  The Parent (for itself and as agent for the existing Obligors) will
          execute or procure that there are executed such documents and
          agreements as are necessary to effect a transfer of rights or
          obligations to a Transferee under this agreement.

     (c)  Nothing in this agreement will restrict the ability of a Lender to
          sub-participate or sub-contract any of its obligations under any
          Senior Finance Document if that Lender remains liable under that
          Senior Finance Document in relation to those obligations. A Lender
          shall notify the Parent of any such sub-participation or
          sub-contracting by it.

     (d)  The Transferee shall, under its own responsibility and at its own
          costs, notify the assignment of rights made in connection with the
          assignment or transfer to the Obligors through a bailiff in accordance
          with Article 1690 of the French Code Civil.

26.3 ASSIGNMENTS BY LENDERS

     (a)  If any Lender wishes to assign all or any of its rights and benefits
          under the Senior Finance Documents, the relevant Transferee shall
          deliver a notice to the Facility Agent confirming to the Facility
          Agent (on behalf of the other parties to the Senior Finance Documents
          (other than the Transferor and the Transferee)) that it shall be under
          the same obligations towards each of them as it would have been under
          if it had been an original party to the Senior Finance Documents as a
          Lender.

     (b)  Upon delivery of a notice under clause 26.3(a), the relevant
          Transferee shall (subject to clause 26.2 (Assignments and transfers by
          Lenders) become a party to the Senior Finance Documents as a Lender.

26.4 TRANSFERS BY LENDERS

     (a)  A Transferor may, subject to clause 26.2 (Assignments and transfers by
          Lenders), after prior consultation with the Parent transfer all or any
          of its rights and obligations under the Senior Finance Documents to a
          Transferee by means of a transfer effected by the Facility Agent
          executing a Transfer Certificate which has been duly completed and
          signed by both the Transferee and the Transferor.

     (b)  On the later of (A) the date specified in the Transfer Certificate as
          being the date on or as from which the transfer under this clause 26.4
          is to take effect and (B) the date on which the Facility Agent
          executes the Transfer Certificate, to the extent that, in the Transfer
          Certificate, the Transferor seeks to transfer its right and
          obligations under the Senior Finance Documents:

          (i)  the Transferor and the other parties to the relevant Senior
               Finance Documents (the "EXISTING PARTIES") will be released from
               their obligations to each other under those Senior Finance
               Documents (the "DISCHARGED OBLIGATIONS");

          (ii) the Transferee and the Existing Parties will assume obligations
               towards each other which differ from the Discharged Obligations
               only insofar as they are owed to or assumed by the Transferee
               instead of the Transferor;

          (iii) the rights of the Transferor and the Existing Parties against
               each other under those Senior Finance Documents (the "DISCHARGED
               RIGHTS") will be cancelled;

                                       83

<PAGE>

          (iv) the Transferee and the Existing Parties will acquire rights
               against each other which differ from the Discharged Rights only
               insofar as they are exercisable by or against the Transferee
               instead of the Transferor; and

          (v)  the Transferee will become a party to this agreement as a Lender
               in relation to the relevant Facility.

     (c)  Each of the parties to this agreement (other than the relevant
          Transferor and the relevant Transferee) irrevocably authorises the
          Facility Agent to execute on its behalf any Transfer Certificate which
          has been duly completed in accordance with this clause 26.4 and
          executed by each of the Transferor and the Transferee.

     (d)  The Facility Agent will notify the other parties to this agreement of
          the receipt and execution by it on their behalf of any Transfer
          Certificate as soon as reasonably practicable following execution.

     (e)  For the purposes of article 1278 of the French Civil Code, each party
          to this agreement agrees that upon any transfer under this clause 26.4
          (Transfers by Lenders), the guarantees and Security Interests created
          under any of Senior Finance Documents shall be preserved for the
          benefit of all Finance Parties including the Transferee.

26.5 FEE

     On the date on which any transfer takes effect in accordance with this
     clause 26, the Transferee will pay to the Facility Agent for its own
     account a transfer fee of EUR 1,000 (VAT not included).

26.6 NO CONTINUING LIABILITY

     Nothing in any Senior Finance Document will oblige a Transferor to, or
     cause a Transferor to be liable to:

     (a)  accept a re-assignment or re-transfer from a Transferee of any of the
          rights or obligations assigned, transferred or novated under this
          clause 26; or

     (b)  support any losses incurred by a Transferee by reason of the
          non-performance by any Obligor of its obligations under any Senior
          Finance Document.

26.7 BENEFIT OF AGREEMENT

     This agreement will be binding on, and enure for the benefit of, each party
     to it and its or any subsequent successors or assigns.

26.8 DISCLOSURE OF INFORMATION

     Each Lender may disclose to a proposed assignee or transferee or any
     sub-participant, risk participant or other participant proposing to enter
     or having entered into a contract with that Lender regarding the Senior
     Finance Documents any information in the possession of that Lender relating
     to any Group Company provided that, prior to disclosing any information in
     accordance with this clause 26.8, a Lender will obtain from any potential
     assignee, transferee or sub-participant, or, as the case may be, from its
     Affiliate, and deliver to the Parent, a confidentiality undertaking,
     addressed to the Obligors, in substantially the same form as given by each
     Lender under clause 25 or such other form as the Parent on behalf of the
     Obligors may approve.

26.9 NO ADDITIONAL COST TO OBLIGORS

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<PAGE>

     If any assignment or transfer results, at or after the time of the
     assignment or transfer, in additional amounts (other than Mandatory Costs)
     becoming due by any Obligor under any provision of this agreement, the
     Transferee shall be entitled to receive such additional amounts only to the
     extent that the Transferor would have been so entitled had there been no
     such assignment or transfer.

26.10 REPLACEMENT OF LENDERS

     If at any time:

     (a)  any Lender becomes insolvent or under administration;

     (b)  the Parent becomes obliged to pay additional amounts as described in
          clause 14.1 (Increased Costs) to any Lender; or

     (c)  any Lender refuses to agree to any request for a consent, waiver or
          amendment to the Finance Documents which the Borrower or the Facility
          Agent has requested and has otherwise been agreed to by Lenders whose
          Commitments exceed 90% of the Total Commitments;

     then the Borrower may replace such Lender by requiring such Lender to (and
     such Lender shall) transfer all of its rights and obligations under this
     Agreement to another Lender (or another bank or financial institution)
     selected by the Borrower which confirms its willingness to assume and does
     assume all the obligations of the transferring Lender, for a purchase price
     equal to the outstanding principal amount of such Lender's participation in
     the outstanding Advances and all accrued interest and fees and other
     amounts payable to that Lender hereunder.

27.  LENDERS' DECISIONS

27.1 PROCEDURES

     (a)  Subject to clauses 27.2 (Exceptions) and 27.3 (Express provisions),
          any provision of any Senior Finance Document may be amended or waived
          (each a "MODIFICATION") with the agreement of the Majority Lenders and
          the Parent. A Modification so agreed may be effected by the Facility
          Agent executing any documents which may be required for that purpose
          on behalf of itself and all the other Finance Parties and the Parent
          executing those documents on behalf of itself and all the other
          Obligors.

      (b)  The Facility Agent will as soon as practicable after any Modification
          is made in accordance with clause 27.1(a) notify the other parties to
          the Senior Finance Documents. Any such Modification will take effect
          from the date on which that notification is given (or any later date
          which the Facility Agent may specify in that notification) and will be
          binding on all parties to the Senior Finance Documents.

27.2 EXCEPTIONS

     The following matters will require the unanimous agreement of all of the
     Lenders:

     (a)  any increase in the Commitment of any Lender;

     (b)  save as otherwise provided in clause 7.6 (Margin adjustment), any
          reduction of the Margin or any reduction of (or change in the currency
          of) the amount of any payment of principal, interest, guarantee fee or
          commission payable by any party under any Senior Finance Document;

                                       85

<PAGE>

     (c)  any extension of any Availability Period, any Maturity Date, any
          Repayment Date or any other date for payment of any amount due, owing
          or payable to any Lender under any Senior Finance Document;

     (d)  any change to the Borrowers or Guarantors or any release of security,
          other than in accordance with clause 17 (Changes to Obligors and
          Security); or

     (e)  any amendment of the definition of "Majority Lenders" in clause 1.1
          (Definitions) or any amendment of clause 3.3 (Rights and obligations
          of Finance Parties), clause 22 (Pro rata payments), clause 26 (Changes
          to Parties) (save for any amendment of an administrative nature) or
          this clause 27.

27.3 EXPRESS PROVISIONS

     Any consent or other matter which, by the express terms of any Senior
     Finance Document, is to be given by all the Lenders will not be effective
     unless all the Lenders have agreed to it but, subject to the agreement of
     all the Lenders having been obtained, may be given by the Facility Agent on
     behalf of all the Lenders.

28.  INDEMNITIES

28.1 GENERAL INDEMNITY AND BREAKAGE COSTS

     The Parent will indemnify each Finance Party on demand against any loss
     (including loss of profit) which it incurs as a result of:

     (a)  the occurrence of any Event of Default;

     (b)  any failure by an Obligor to pay any amount due under a Senior Finance
          Document on its due date;

     (c)  any Drawing not being made for any reason (other than as a result of a
          default by a Finance Party) on the Drawdown Date specified in the
          relevant Drawdown Request; or

     (d)  any Advance or overdue amount under a Senior Finance Document being
          repaid or prepaid otherwise than on the last day of an Interest Period
          relating to that Advance or overdue amount,

     in each case upon production of duly documented evidence.

28.2 CURRENCY INDEMNITY

     Without prejudice to clause 28.1 (General indemnity and breakage costs),
     if:

     (a)  any amount payable by any Obligor under or in connection with any
          Senior Finance Document is received by any Finance Party (or by an
          Agent on behalf of any Finance Party) in a currency (the "PAYMENT
          CURRENCY") other than that agreed in the relevant Senior Finance
          Document (the "AGREED CURRENCY"), whether as a result of any judgement
          or order, the enforcement of any judgement or order, the liquidation
          of the relevant Obligor or otherwise, and the amount produced by
          converting the Payment Currency so received into the Agreed Currency
          is less than the relevant amount of the Agreed Currency; or

     (b)  any amount payable by any Obligor under or in connection with any
          Senior Finance Document has to be converted from the Agreed Currency
          into another currency for the purpose of (i) making or filing a claim
          or proof against any Obligor, (ii) obtaining an order or

                                       86

<PAGE>

          judgement in any court or other tribunal or (iii) enforcing any order
          or judgement given or made in relation to any Senior Finance Document,

     then that Obligor will, as an independent obligation, on demand indemnify
     the relevant Finance Party for the deficiency and any loss sustained as a
     result, upon production of duly documented evidence. Any conversion
     required will be made at the prevailing rate of exchange on the date and in
     the market determined by the relevant Finance Party as being most
     appropriate for the conversion. That Obligor will also pay the costs of the
     conversion.

28.3 WAIVER

     The Parent waives any right it may have in any jurisdiction to pay any
     amount under any Senior Finance Document in a currency other than that in
     which it is expressed to be payable in that Senior Finance Document.

29.  MISCELLANEOUS

29.1 CERTIFICATES CONCLUSIVE

     Save as expressly provided otherwise in any Senior Finance Document, a
     certificate, determination, notification or opinion of any Finance Party
     stipulated for in any Senior Finance Document or as to any rate of interest
     or any other amount payable under any Senior Finance Document will be
     conclusive and binding on each Obligor, except in the case of manifest
     error.

29.2 NO IMPLIED WAIVERS

     (a)  No failure or delay by any Finance Party in exercising any right,
          power or privilege under any Senior Finance Document will operate as a
          waiver of that right, power or privilege, nor will any single or
          partial exercise of any right, power or privilege preclude any other
          or further exercise of that right, power or privilege, or the exercise
          of any other right, power or privilege.

     (b)  The rights and remedies provided in the Senior Finance Documents are
          cumulative and not exclusive of any rights and remedies provided by
          law and all those rights and remedies will, except where expressly
          provided otherwise in any Senior Finance Document, be available to the
          Finance Parties severally and any Finance Party shall be entitled to
          commence proceedings in connection with those rights and remedies in
          its own name.

     (c)  A waiver given or other consent granted by any Finance Party under any
          Senior Finance Document will be effective only if given in writing and
          then only in the instance and for the purpose for which it is given.

29.3 INVALIDITY OF ANY PROVISION

     If any provision of this agreement is or becomes invalid, illegal or
     unenforceable in any respect under any law, the validity, legality and
     enforceability of the remaining provisions shall not be affected or
     impaired in any way.

30.  GOVERNING LAW AND SUBMISSION TO JURISDICTION

30.1 GOVERNING LAW

     This agreement (and any dispute, controversy, proceedings or claim of
     whatever nature arising out of or in any way relating to this agreement)
     shall be governed by, and construed in accordance with, French law.

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<PAGE>

30.2 SUBMISSION TO JURISDICTION

     For the benefit of each Finance Party, each Obligor irrevocably submits to
     the jurisdiction of the Commercial Courts of Paris (Tribunal de Commerce de
     Paris) for the purpose of hearing at first instance and determining any
     dispute arising out of this agreement and for the purpose of enforcement of
     any judgement against its assets.

30.3 ELECTION OF DOMICILE

     For the benefit of each Finance Party, each Obligor (other than the Parent)
     irrevocably elects domicile with the Parent for the purposes of the Senior
     Finance Documents.

Executed on 7 December 2005.
In six original copies.

                                       88

<PAGE>

                                   SCHEDULE 1
                                     LENDERS

<TABLE>
<CAPTION>
                                              TERM             REVOLVING
                                        COMMITMENT (EUR)   COMMITMENT (EUR)
                                        ----------------   ----------------
<S>                                     <C>                <C>
CALYON
Leverage and Financial Sponsors Group
9 quai du President Paul Doumer
92920 Courbevoie Cedex - France            380,000,000        50,000,000

Facsimile: +33 1 41 89 39 53 / 14 33
Attention: Jerome Del Ben / Victoria
Becq-Giraudon
</TABLE>

                                       89

<PAGE>

                                   SCHEDULE 2
                               SECURITY DOCUMENTS

1.   BY THE PARENT

     Each of the following documents executed by the Parent in favour of the
     Security Agent in the agreed form:

     (a)  pledge of financial instruments accounts (nantissement de compte
          d'instruments financiers) over all the shares of Antargaz;

     (b)  a general assignment (cession) of all Receivables by way of security
          (pursuant to the Loi Dailly);

     (c)  the agreement relating to the Refinancing Cash Collateral Account.

2.   BY ANTARGAZ

     Each of the following documents executed by Antargaz in favour of the
     Security Agent in the agreed form:

     (a)  a general assignment (cession) of all Receivables by way of security
          (pursuant to the Loi Dailly);

     (b)  pledges of financial instruments accounts (nantissements de compte
          d'instruments financiers) and pledges of shares (nantissements de
          parts sociales) over all the shares (less a maximum of 10 shares) of
          the following Companies held by Antargaz:

          (i)  Wogegal SA;

          (ii) Gaz Est Distribution SA; and

          (iii) Rhone Mediterranee Gaz SA.

                                       90

<PAGE>

                                   SCHEDULE 3
                        DOCUMENTARY CONDITIONS PRECEDENT

1.   FORMALITIES CERTIFICATES

     A certificate in the agreed form from each Obligor signed by its chief
     financial officer (or as the case may be its chief executive officer)
     attaching, in relation to the relevant Obligor, the following documents:

     (a)  a certified copy of the statuts and extrait K-bis of such Obligor and,
          in respect of Antargaz only, of each of the Subsidiaries of Antargaz
          whose shares are pledged pursuant to the Senior Finance Documents;

     (b)  a certified copy of the resolution of the board of directors of such
          Obligor (or equivalent) approving the transactions and matters
          contemplated by the Senior Finance Documents to which that Obligor is
          or is to be a party and the Refinancing and approving the execution,
          delivery and performance of each and authorising named persons to sign
          the Senior Finance Documents to which it is or is to be a party and
          any documents to be delivered by that Obligor under any of the same;
          and

     (c)  if required under its constitutional or governing documents, a
          certified copy of a resolution of the shareholders' meeting of the
          Obligor approving (i) the transactions and matters contemplated by the
          Senior Finance Documents to which that Obligor is or is to be a party
          and (ii) the Refinancing.

2.   SENIOR FINANCE DOCUMENTS

     Certified copies of the following documents in the agreed form duly
     executed and delivered by all parties to them:

     (a)  the Security Documents;

     (b)  the Fees Letter;

     (c)  the Intercreditor Agreement; and

     (d)  the UGI Bordeaux Letter of Undertaking.

3.   INDEBTEDNESS AND SECURITY INTERESTS

     A certificate in the agreed form from the Parent and Antargaz signed by the
     chief executive officer of the Parent and the chief financial officer of
     Antargaz setting out the financial indebtedness of the Group as at the
     Signing Date and all Security Interests granted by the members of the Group
     as at the Signing Date (other than those securing the Existing Facilities).

4.   FINANCIAL INFORMATION

     Certified copies in the agreed form of:

     (a)  the Original Audited Accounts;

     (b)  the Original Management Accounts;

     (c)  the Approved Projections.

5.   ANCILLARY SECURITY NOTICES

     (a)  The originals of the documents set out below to be issued in
          connection with the Security Documents and duly signed on behalf of
          each relevant Obligor:

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<PAGE>

          (i)  declaration de gage and attestation de gage relating to the
               special charged account to which the shares of Antargaz are
               credited;

          (ii) declaration de gage and attestation de gage relating to the
               special charged account to which the shares of Wogegal SA, Gaz
               Est Distribution SA and Rhone Mediterranee Gaz SA subject to a
               Security Document are credited;

          (iii) a bordereau Dailly from the Parent relating to the general
               assignment of Receivables (to the extent required under the
               relevant master agreement); and

          (iv) a bordereau Dailly from Antargaz relating to the general
               assignment of Receivables (to the extent required under the
               relevant master agreement).

     (b)  All third party consents required to be obtained on or prior to the
          first Drawdown Date in any Security Document (including under any
          clause d'agrement).

6.   REFINANCING AND RELEASE OF EXISTING SECURITY

     Evidence satisfactory to the Facility Agent that:

     (a)  the Obligors have cancelled all the Existing Facilities effective on
          the first Drawdown Date;

     (b)  all outstanding amounts under the Existing Term Facility will be fully
          repaid on the first Drawdown Date out of the proceeds of the Term
          Facility, and that all outstanding amounts (if any) under the Existing
          Revolving Facility will be fully repaid out of the proceeds of the
          cash of the Parent and as the case may be, a first Revolving Advance
          made on the first Drawdown Date;

     (c)  Calyon as security agent of the Existing Facilities Agreement, acting
          on behalf of all beneficiaries (including existing hedging banks) of
          the security interests granted in connection with the Existing
          Facilities Agreement has fully released with effect on the first
          Drawdown Date all such existing security interests;

7.   FEES

     Evidence satisfactory to the Facility Agent that, upon drawdown of the
     first Advance, all fees payable in accordance with the Fees Letter will be
     paid and all stamp duty and other fees (whether in relation to filings,
     property transfers, security or otherwise) will be paid.

8.   TEG LETTER

     The original letter referred to in clause 7.8 (Effective global rate)
     substantially in the form set out in schedule 8 and counter-signed on
     behalf of the Parent.

9.   LEGAL OPINIONS

     Each of the following legal opinions in agreed form:

     (a)  a legal opinion of Shearman & Sterling LLP as to matters of French law
          relating to validity and enforceability of the Senior Finance
          Documents;

     (b)  a legal opinion of Weil, Gotshal & Manges LLP as to matters of French
          law relating to capacity and authority in relation to the Obligors
          party to the Senior Finance Documents;

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<PAGE>

     (c)  a legal opinion of Linklaters Loesch as to matters of Luxembourg law
          relating to the status, capacity and authority of Finco in respect of
          its execution of the Intercreditor Agreement; and

     (d)  a legal opinion of Ashurst as to matters of English law concerning the
          High Yield Documents.

10.  FUNDS FLOW

     Delivery of a satisfactory funds flow showing that aggregate proceeds
     (including the Term Facility) shall be sufficient to fully refinance the
     Existing Indebtedness and fees and other expenses incurred in connection
     with the Refinancing, together with the relevant instruction letters.

11.  TAX STRUCTURE MEMORANDUM

     Delivery of a tax structure memorandum of Weil, Gotshal & Manges LLP
     describing the refinancing steps and related tax matters (together with a
     customary reliance letter).

12.  TAX CONSOLIDATION AGREEMENT

     Delivery of a certified copy of the Tax Consolidation Agreement.

13.  KYC CHECKS

     Delivery of satisfactory "Know your customers" checks documents.

                                       93

<PAGE>

                                   SCHEDULE 4
                      PART 1 - DRAWDOWN REQUEST - ADVANCES

To:          Calyon as Facility Agent

Attention:   [__________]

From:        [BORROWER/PARENT]

Date:        [__________]

Dear Sirs,

RE: FACILITIES AGREEMENT DATED 7 DECEMBER 2005 (THE "FACILITIES AGREEMENT")

We request a Drawing of the [TERM/ REVOLVING] Facility as follows:

(a)  Amount:                      EUR [__________]
(b)  Currency                     EUR [__________]
(c)  Drawdown Date:               EUR [__________]
(d)  Interest Period:             EUR [__________]
(e)  Payment should be made to:   EUR [__________]
(f)  The Borrower is:             EUR [__________]

We confirm that:

(i)  the representations and warranties made in clause 18 (Representations and
     Warranties) of the Facilities Agreement stipulated as being made or
     repeated on the date of this Drawdown Request are true and accurate as if
     made in relation to the facts and circumstances existing on that date;

(ii) each Obligor is in full compliance with its undertakings contained in
     clause 19 (Undertakings) of the Facilities Agreement; and

(iii) [no Default has occurred and is continuing or will occur as a result of
     the proposed Advance being made.](1) [[None of the events specified in
     clauses 20.3(a) to 20.3(g) has occurred and is continuing].(2)]

Terms defined in the Facilities Agreement have the same meanings when used in
this request.

----------------------
[AUTHORISED SIGNATORY]
for and on behalf of
[BORROWER/PARENT]

----------
(1)  For any other Drawdown Request than the first Drawdown Request.

(2)  For the first Drawdown Request only.

                                       94

<PAGE>

                   PART 2 - DRAWDOWN REQUEST - BANK GUARANTEES

To:          Calyon as Facility Agent

Attention:   [__________]

From:        [BORROWER/PARENT]

Date:        [__________]

Dear Sirs,

RE: FACILITIES AGREEMENT DATED 7 DECEMBER 2005 (THE "FACILITIES AGREEMENT")

We request a Drawing of the Revolving Facility by way of issue of a Bank
Guarantee as follows:

Amount:                        EUR [__________]
Currency                       EUR [__________]
Drawdown Date:                 EUR [__________]
Beneficiary:                   EUR [__________]
Expiry Date:                   EUR [__________]
Obligation to be guaranteed:   EUR [__________]
The Borrower is:               EUR [__________]

We confirm that:

(i)  the representations and warranties made in clause 18 (Representations and
     Warranties) of the Facilities Agreement stipulated as being made or
     repeated on the date of this Drawdown Request are true and accurate as if
     made in relation to the facts and circumstances existing on that date;

(ii) each Obligor is in full compliance with its undertakings contained in
     clause 19 (Undertakings) of the Facilities Agreement; and

(iii) no Default has occurred and is continuing or will occur as a result of the
     proposed Advance being made.

We attach the form of the proposed Bank Guarantee.

Terms defined in the Facilities Agreement have the same meanings when used in
this request.

                            ------------------------
                             [AUTHORISED SIGNATORY]
                              for and on behalf of
                                [BORROWER/PARENT]

                                       95

<PAGE>

                                   SCHEDULE 5
                             TRANSFER CERTIFICATE(3)

              [(REFERRED TO IN CLAUSE 26.4 (TRANSFERS BY LENDERS)]

To:   Calyon as Facility Agent
      for and on behalf of the Obligors and the Finance Parties
      (each as defined in the Facilities Agreement referred to below).

This transfer certificate (this "CERTIFICATE") relates to a facilities agreement
dated 7 December 2005 between, among others, AGZ Holding (the "PARENT"),
Antargaz S.A., the banks and financial institutions named in that agreement as
lenders and Calyon as Facility Agent and Security Agent (as from time to time
amended the "FACILITIES AGREEMENT"). Terms defined in the Facilities Agreement
shall, unless otherwise defined in this Certificate, have the same meanings when
used in this Certificate.

1.   TRANSFEROR CONFIRMATION AND REQUEST

     [NAME OF TRANSFEROR] (the "TRANSFEROR") by its execution of this
     Certificate:

     (a)  requests [NAME OF TRANSFEREE] (the "TRANSFEREE") to accept and
          procure, in accordance with clause 26.4 (Transfers by Lenders), the
          transfer to the Transferee of the portion of the Transferor's
          Commitment and participation in the Facilities (and in the Advances
          made by it) as specified in schedule 1 to this Certificate (the
          "TRANSFER RIGHTS") by counter-signing this Certificate and delivering
          it to the Facility Agent at its address for notices under the
          Facilities Agreement, so as to take effect on the date specified in
          schedule 2 to this Certificate (the "TRANSFER DATE"); and

     (b)  confirms that the details which appear in schedule 1 to this
          Certificate accurately record the amount of the Transferor's
          Commitments and the principal amount of the Transfer Rights at the
          date of this Certificate.

2.   TRANSFEREE REQUEST

     The Transferee, by its execution of this Certificate, requests each Obligor
     and each Finance Party to accept this Certificate as being delivered under
     and for the purposes of clause 26.4 (Transfers by Lenders), so as to take
     effect in accordance with the terms of that clause on the Transfer Date.

3.   TRANSFER FEE

     The Transferee shall pay to the Facility Agent for the Facility Agent's own
     account a transfer fee of EUR [1,000] (VAT not included) as specified in
     clause 26.5 (Fee).

----------
(3)  Each of the Transferor and Transferee should ensure that all regulatory
     requirements are satisfied in connection with its entry into of any
     Transfer Certificate.

                                       96

<PAGE>

4.   TRANSFEREE REPRESENTATIONS

     The Transferee:

     (a)  confirms that it has received from the Transferor a copy of the
          Facilities Agreement, together with all other documents and
          information which it has requested in connection with the Facilities
          Agreement;

     (b)  confirms that it has not relied, and will not after the date of this
          Certificate rely, on the Transferor or any other Finance Party to
          check or enquire on its behalf into the legality, validity,
          effectiveness, adequacy, accuracy or completeness of any of those
          documents or that information;

     (c)  agrees that it has not relied, and will not after the date of this
          Certificate rely, on the Transferor or any other Finance Party to
          assess or keep under review on its behalf the financial condition,
          creditworthiness, condition, affairs, status or nature of the Parent
          or any other party to the Facilities Agreement;

     (d)  represents and warrants to the Transferor and each other Finance Party
          that it has the power to become a party to the Facilities Agreement as
          a Lender on the terms set out in the Facilities Agreement and this
          Certificate and has taken all necessary steps to authorise execution
          and delivery of this Certificate;

     (e)  acknowledges the limitations on the Transferor's obligations set out
          in clause 26.6 (No continuing liability); and

     (f)  agrees that if any Transfer Rights are rescheduled or renegotiated,
          the Transferee and not the Transferor will be subject to the
          rescheduled or renegotiated terms.

5.   TRANSFEREE COVENANTS

     The Transferee undertakes with the Transferor and each other party to the
     Facilities Agreement that it will perform in accordance with its terms all
     those obligations which, by the terms of the Facilities Agreement, will be
     assumed by it following delivery of this Certificate to the Facility Agent.

6.   EXCLUSION OF TRANSFEROR'S LIABILITIES

     Neither the Transferor nor any other Finance Party makes any representation
     or warranty nor assumes any responsibility in relation to the legality,
     validity, effectiveness, adequacy or enforceability of the Senior Finance
     Documents and assumes no responsibility for the financial condition of the
     Parent or any other party to the Senior Finance Documents or for the
     performance and observance by the Parent or any other Obligor of any of its
     obligations under the Senior Finance Documents and all of those conditions
     and warranties, whether express or implied by law or otherwise, are hereby
     excluded.

7.   SUBSTITUTION AND ASSUMPTION

     On execution of this Certificate by the Facility Agent (on behalf of the
     Transferor and the Transferee), the Transferee will become a party to the
     Facilities Agreement on and with effect from the Transfer Date in
     substitution for the Transferor in relation to those rights and obligations
     which, by the terms of the Facilities Agreement and this Certificate, are
     assumed by the Transferee. A copy of this Certificate shall be notified (at
     the initiative and cost of the Transferee) to each Obligor through a French
     huissier and the Transferee shall benefit from all of the Transferor's
     rights under the Security Documents with respect to the Transfer Rights.

                                       97

<PAGE>

     For the purposes of article 1278 of the French Civil Code, the guarantees
     and Security Interests created under any of Senior Finance Documents shall
     be preserved for the benefit of all Finance Parties including the
     Transferee.

8.   REVOLVING COMMITMENTS

     To the extent that this Certificate operates to novate Revolving
     Commitments, each Issuing Lender has consented to that novation in
     accordance with clause 26.2 (Assignments and transfers by Lenders).

9.   LAW

     This Certificate (and any dispute, controversy, proceedings or claim of
     whatever nature arising out of or in any way relating to this Certificate)
     shall be governed by and construed in accordance with French law.

IN WITNESS of which the parties to this Certificate have duly executed this
Certificate on the date which appears at the end of this Certificate.

                                       98

<PAGE>

                       SCHEDULE 1 TO TRANSFER CERTIFICATE

Transferor's existing Term Commitment:              EUR [___]

Transferor's existing Revolving Commitment:         EUR [___]

Portion of Transferor's existing
[Term Commitment Term Advance] to be transferred:   EUR [___]

Portion of Transferor's existing Revolving
Commitment to be transferred:                       EUR [___]

Portion of Transferor's existing Contingent
Liability under any relevant Bank Guarantee
to be transferred                                   EUR [___]

[Participation in Revolving Advance(s) to be transferred(4):

<TABLE>
<S>                          <C>
Revolving Advance 1:         Participation: EUR [___] Interest Period: [__] months, Maturity Date: 200[_]

Revolving Advance 2:         Participation: EUR [___] Interest Period: [__] months, Maturity Date: 200[_]

[Revolving Advance [__]:]    Participation: EUR [___] Interest Period: [__] months, Maturity Date: 200[_]
</TABLE>

----------
(4)  Only relevant if Transfer Date is during an Interest Period.

                                       99

<PAGE>

                       SCHEDULE 2 TO TRANSFER CERTIFICATE
                     PARTICULARS RELATING TO THE TRANSFEREE

Transfer Date: ______________________

Lending Office: _____________________

Contact Name: _______________________

Account for Payments: _______________

Address for Notices: ________________

Telephone: __________________________

Facsimile: __________________________

                       SIGNATORIES TO TRANSFER CERTIFICATE

[Transferor]                            [Transferee]

By:                                     By:
    ---------------------------------       ------------------------------------
Date: [__________]                      Date: [__________]

[Facility Agent]

By:
    ---------------------------------
Date: [__________]

                                      100

<PAGE>

                                   SCHEDULE 6
                               ACCESSION DOCUMENT

THIS AGREEMENT is made on [__________]

BETWEEN:

(1)  [__________] (a company incorporated in [__________] [with registered
     number [__________]]) (the "NEW OBLIGOR");

(2)  AGZ HOLDING (a company incorporated in France as a societe anonyme with
     registered number 413 765 108 RCS Paris) (the "PARENT") for itself and as
     agent for the existing Obligors;

(3)  Calyon in its capacity as Facility Agent under the Facilities Agreement;
     and

(4)  Calyon in its capacity as Security Agent under the Facilities Agreement.

BACKGROUND:

(A)  This agreement is entered into in connection with facilities agreement (the
     "FACILITIES AGREEMENT") dated 7 December 2005 between, amongst others, (1)
     the Parent, (2) Antargaz, (3) Calyon as Arranger, (4) the banks and
     financial institutions named in the Facilities Agreement as Lenders, (5)
     Calyon as Facility Agent and Security Agent.

(B)  This agreement has been entered into to record the admission of the New
     Obligor as a [Borrower/ Guarantor] under the Facilities Agreement.

IT IS AGREED as follows:

1.   DEFINITIONS

     Words and expressions defined in the Facilities Agreement have the same
     meanings when used in this agreement.

2.   ADMISSION OF NEW OBLIGOR

2.1  THE NEW OBLIGOR AGREES TO BECOME:

     a [Borrower/ Guarantor] under the Facilities Agreement and agrees to be
     bound by the terms of the Credit Agreement as a [Borrower/ Guarantor].

2.2  The New Obligor confirms the appointment of the Parent as its agent on the
     terms of clause 2.3 (Parent as Obligors' agent) of the Facilities
     Agreement.

2.3  The New Obligor confirms that its address details for notices in relation
     to clause 24 (Notices) are as follows:

     Address:        [__________]
     Facsimile:      [__________]
     Attention of:   [__________]

2.4  The parties to this agreement other than the New Obligor confirm their
     acceptance of the New Obligor as a [Borrower/ Guarantor] for the purpose of
     the Facilities Agreement].

                                      101

<PAGE>

3.   REPRESENTATIONS

     The New Obligor represents and warrants in the terms set out in 18.2
     (Incorporation) to 18.5 (No contravention) inclusive and in 18.7 (Consents)
     and acknowledges that the Facility Agent and the Security Agent enter into
     this Accession Document in full reliance on those representations and
     warranties.

4.   LAW AND JURISDICTION

4.1  This agreement (and any dispute, controversy, proceedings or claim of
     whatever nature arising out of or in any way relating to this deed) shall
     be governed by and construed in accordance with French law.

4.2  For the benefit of each Finance Party, each of the Parent and the New
     Obligor irrevocably submits to the jurisdiction of the Commercial Court of
     Paris (Tribunal de Commerce de Paris) for the purpose of hearing and
     determining at first instance any dispute arising out of this agreement and
     for the purpose of enforcement of any judgement against its assets.

4.3  For the benefit of each Finance Party, the New Obligor irrevocably elects
     domicile with the Parent for the purposes of the Senior Finance Documents.

                                      102

<PAGE>

                        SIGNATORIES TO ACCESSION DOCUMENT

THE NEW OBLIGOR
[Name]

BY:
    ---------------------------------

THE PARENT
AGZ HOLDING

BY:
    ---------------------------------
for itself and as agent
for and on behalf of
the existing Obligors

THE FACILITY AGENT
[Name]

BY:
    ---------------------------------
for itself and as Facility Agent
on behalf of the Lenders

THE SECURITY AGENT
[Name]

BY:
    ---------------------------------
for itself and as Security Agent
on behalf of the Lenders

                                      103

<PAGE>

                                   SCHEDULE 7
                              AUDITORS CERTIFICATE

                         [HEADED NOTEPAPER OF AUDITORS]

To:  Calyon as Facility Agent
     For and on behalf of the Finance Parties (each as defined in the Facilities
     Agreement referred to below)

     Dear Sirs,

     This certificate (this "CERTIFICATE") relates to a facilities agreement
     dated 7 December 2005 between, AGZ Holding (the "OBLIGORS"), the banks and
     financial institutions named in that agreement as lenders and Calyon as
     Facility Agent and Security Agent (as from time to time amended, the
     "FACILITIES AGREEMENT"). Terms defined in the Facilities Agreement shall,
     unless otherwise defined in this Certificate, have the same meanings when
     used in this Certificate.

     In accordance with clause 19.10(d)(ii) of the Credit Agreement, we hereby
     confirm that as at the date on which the Annual Accounts for the financial
     year ended [__________] were prepared, the Parent was in compliance with
     the financial covenants contained in clause 19.11 (Financial Covenant -
     Leverage Ratio) of the Credit Agreement.

     Leverage:

          We confirm that:

     (i)  as at [__________], Total Net Debt was [__________]; and

     (ii) for the financial year ended [__________], EBITDA was [__________].

     Therefore, as at [__________], the ratio of Total Net Debt to EBITDA was
     [__________].

-------------------------------------
[Auditors]

                                      104

<PAGE>

                                   SCHEDULE 8
                      FORM OF EFFECTIVE GLOBAL RATE LETTER

                          [HEADED NOTE PAPER OF CALYON]

7 DECEMBER 2005

AGZ Holding
[INSERT ADDRESS]

Dear Sirs,

SENIOR FACILITIES AGREEMENT DATED 7 DECEMBER 2005 BETWEEN AMONG OTHERS AGZ
HOLDING AS PARENT, CALYON AS ARRANGER, UNDERWRITER, FACILITY AGENT AND SECURITY
AGENT AND THE LENDERS NAMED THEREIN PURSUANT TO WHICH THE LENDERS AGREED TO MAKE
AVAILABLE TO THE BORROWERS EUR 380,000,000 IN TERM AND WORKING CAPITAL CREDIT
FACILITIES (THE "FACILITIES") TO THE BORROWERS (THE "FACILITIES AGREEMENT").

Unless otherwise defined in this letter, words and expressions defined in the
Facilities Agreement have the same meanings when used in this letter.

Pursuant to the terms of clause 7.8 (Effective global rate) of the Facilities
Agreement, it was agreed that the effective global rate (taux effectif global)
of the Facilities would be notified to the Parent by delivery of a separate
letter from the Facility Agent (acting for itself and on behalf of the other
Lenders) on or before the date of the Facilities Agreement.

This letter constitutes the separate letter referred to at clause 7.8 of the
Facilities Agreement and constitutes an integral part of the Facilities
Agreement.

We wish to draw your attention to the fact that, taking into account the nature
of the provisions of the Facilities Agreement, and in particular the variability
of the interest rate and the ability that you have to choose the length of
Interest Periods, it is not possible to determine the exact effective global
rate of the Facilities and we are asking you to acknowledge this fact by signing
this letter.

However, for the purposes of articles L.313-1 to L.313-6 of the French Consumer
Code (Code de la Consommation), we have calculated, by way of example, the
effective global rate applicable to the Facilities on the basis of: (i) the
making available of the entirety of the Facilities on the date of the Facilities
Agreement and (ii) the following factors as at 7 December 2005:

     -    3 months EURIBOR is [__] per cent. per annum; and

     -    the arrangement fee and commitment fee provided for in the Facility
          Agreement and the estimated legal fees which relate to the transaction
          amount to the sums set out in a separate letter which was addressed to
          you today.

                                      105

<PAGE>

In application of the foregoing:

(i)  the effective global rate for the Term Facility is [__] per cent. per
     annum, the rate for this period being [__] per cent. and the period being
     of 1 month duration;

(ii) the effective global rate for the revolving facility is [__] per cent. per
     annum, the rate for this period being [__] per cent. and the period being
     of 1 month duration.

Please acknowledge receipt of this letter by counter-signing it where indicated
below.

Yours faithfully,

The Facility Agent

CALYON
(acting for itself and on behalf of the other Lenders)

-------------------------------------
Name:
      -------------------------------

The Parent

AGZ HOLDING

-------------------------------------
Name:
      -------------------------------

                                      106

<PAGE>

                                   SCHEDULE 9
                         PART 1 - DISTRIBUTION COMPANIES

<TABLE>
<CAPTION>
NAME                                  TYPE OF COMPANY               NUMBER
----                                  ---------------               ------
<S>                         <C>                                   <C>
Wogegal ("WOGEGAL")*                  Societe anonyme             310 095 658

Gaz Est Distribution
("GAZ EST DISTRIBUTION")*             Societe anonyme             421 283 615

Nord GPL ("NORD GPL")*/**             Societe anonyme             422 265 504

Aquitaine-Pyrenees Gaz
("MIDI-PYRENEES GAZ")*                Societe anonyme             410 968 770

Rhone Mediterranee Gaz
- RMG ("RMG")*                        Societe anonyme             382 151 272

GIE Floregaz ("FLOREGAZ")    Groupement d'interets economiques    421 385 881

Engas ("ENGAS")             Societe de la Principaute d'Andorre
</TABLE>

*    Material Company

**   Nord GPL will be merged into Gaz Est Distribution

                                      107

<PAGE>
                    PART 2 - STORAGE AND LOGISTICS COMPANIES

<TABLE>
<CAPTION>
NAME                                  TYPE OF COMPANY               NUMBER
----                                  ---------------               ------
<S>                         <C>                                 <C>
Geovexin ("GEOVEXIN")                Societe anonyme            304 350 887

Societe Bearnaise des Gaz
Liquefies ("SOBEGAL")                Societe anonyme            095 880 894

Geogaz Lavera ("GEOGAZ")*            Societe anonyme            703 002 535

Societe des Gaz Liquefies
de Normandie ("NORGAL")*    Groupement d'interets economiques   777 344 623

Societe en participation                                            Not
de Queven ("SP QUEVEN")         Societe en participation        applicable

Compagnie Bordelaise des
Gaz Liquides ("COBOGAL")             Societe anonyme            456 201 011

Rhone Gaz ("RHONE GAZ")              Societe anonyme            969 507 235

Societe Industrielle des
Gaz de Petrole de l'Ouest   Societe a responsabilite limitee    026 180 216
("SIGAP OUEST")

GIE Donges ("DONGES")*      Groupement d'interets economiques   438 640 914
</TABLE>

*    Material Company

                                      108
<PAGE>

                                   SCHEDULE 10
                           PART 1 - SUPPLY AGREEMENTS

(a)  The supply agreement dated 27 March 2001, as amended on 29 March 2002, 1
     April 2002, 1 July 2002, 6 December 2002, 30 May 2003, 29 May 2004, 30 May
     2005 and from time to time, between Total Gaz SNC (which has been
     substituted to Elf Antar France) and the Parent for the supply by Total Gaz
     SNC to the Parent of butane and propane (the "PRINCIPAL SUPPLY AGREEMENT"),
     together with each document that is governed by, or entered into pursuant
     to that supply agreement.

(b)  The supply agreement dated 2 April 2001, between the Parent and Antargaz,
     as amended on 1 April 2002, 1 July 2004, 1 July 2005 and from time to time,
     for the supply by the Parent to Antargaz of butane and propane.

(c)  The letter dated 27 March 2001 from the Parent to Elf Antar France in the
     agreed form relating to certain circumstances in which the Parent may
     transfer the benefit of the Principal Supply Agreement to Antargaz.

                                      109

<PAGE>

                        PART 2 - OTHER MATERIAL CONTRACTS

1.   NORGAL

     The contract governing the Groupement d'Interets Economiques Norgal and the
     allocation of payments to and charges to the parties to the Groupement d'
     Interets Economiques Norgal; and

2.   GEOGAZ

     The agreement governing the invoicing by Geogaz to its shareholders of
     payments calculated on the basis of the volume made available to each of
     them and on their traffic accounted for according to the different means of
     loading and unloading by applying fixed tariffs decided upon by the Conseil
     d' Administration of Geogaz.

3.   GROUPEMENT DONGES

     The contract governing Groupement Donges, the internal regulation
     (reglement interieur) of Groupement Donges and the operating rules (regles
     d'exploitation) relating to Groupement Donges (each as amended from time to
     time).

                                      110

<PAGE>

                                   SCHEDULE 11
                             MANDATORY COST FORMULAE

1.   The Mandatory Cost is an addition to the interest rate to compensate
     Lenders for the cost of compliance with (a) the requirements of the Bank of
     England and/or the Financial Services Authority (or, in either case, any
     other authority which replaces all or any of its functions) or (b) the
     requirements of the European Central Bank.

2.   On the first day of each Interest Period (or as soon as possible
     thereafter) the Facility Agent shall calculate, as a percentage rate, a
     rate (the "ADDITIONAL COST RATE") for each Lender, in accordance with the
     paragraphs set out below. The Mandatory Cost will be calculated by the
     Facility Agent as a weighted average of the Lenders' Additional Cost Rates
     (weighted in proportion to the percentage participation of each Lender in
     the relevant Advance) and will be expressed as a percentage rate per annum.

3.   The Additional Cost Rate for any Lender lending from a Lending Office in a
     Participating Member State will be the percentage notified by that Lender
     to the Facility Agent. This percentage will be certified by that Lender in
     its notice to the Facility Agent to be its reasonable determination of the
     cost (expressed as a percentage of that Lender's participation in all
     Advances made from that Lending Office) of complying with the minimum
     reserve requirements of the European Central Bank in respect of loans made
     from that Lending Office.

4.   The Additional Cost Rate for any Lender lending from a Lending Office in
     the United Kingdom will be calculated by the Facility Agent as follows:

     E x 0.01
     -------- per cent. per annum.
       300

     Where:

     E    is designed to compensate Lenders for amounts payable under the Fees
          Rules and is calculated by the Facility Agent as being the average of
          the most recent rates of charge supplied by the Reference Banks to the
          Facility Agent pursuant to paragraph 6 below and expressed in pounds
          per GBP 1,000,000.

5.   For the purposes of this Schedule:

     (a)  "FEES RULES" means the rules on periodic fees contained in the FSA
          Supervision Manual or such other law or regulation as may be in force
          from time to time in respect of the payment of fees for the acceptance
          of deposits;

     (b)  "FEE TARIFFS" means the fee tariffs specified in the Fees Rules under
          the activity group A.1 Deposit acceptors (ignoring any minimum fee or
          zero rated fee required pursuant to the Fees Rules but taking into
          account any applicable discount rate); and

     (c)  "TARIFF BASE" has the meaning given to it in, and will be calculated
          in accordance with, the Fees Rules.

6.   If requested by the Facility Agent, each Reference Bank shall, as soon as
     practicable after publication by the Financial Services Authority, supply
     to the Facility Agent, the rate of charge payable by that Reference Bank to
     the Financial Services Authority pursuant to the Fees Rules in respect of
     the relevant financial year of the Financial Services Authority (calculated
     for this purpose by that Reference Bank as being the average of the Fee
     Tariffs applicable to that Reference Bank for that financial year) and
     expressed in pounds per GBP 1,000,000 of the Tariff Base of that Reference
     Bank.

                                      111

<PAGE>

7.   Each Lender shall supply any information required by the Facility Agent for
     the purpose of calculating its Additional Cost Rate. In particular, but
     without limitation, each Lender shall supply the following information on
     or prior to the date on which it becomes a Lender:

     (a)  the jurisdiction of its Lending Office; and

     (b)  any other information that the Facility Agent may reasonably require
          for such purpose.

     Each Lender shall promptly notify the Facility Agent of any change to the
     information provided by it pursuant to this paragraph.

8.   The rates of charge of each Reference Bank for the purpose of E above shall
     be determined by the Facility Agent based upon the information supplied to
     it pursuant to paragraphs 6 above.

9.   The Facility Agent shall have no liability to any person if such
     determination results in an Additional Cost Rate which over or under
     compensates any Lender and shall be entitled to assume that the information
     provided by any Lender or Reference Bank pursuant to paragraphs 3, 6 and 7
     above is true and correct in all respects.

10.  The Facility Agent shall distribute the additional amounts received as a
     result of the Mandatory Cost to the Lenders on the basis of the Additional
     Cost Rate for each Lender based on the information provided by each Lender
     and each Reference Bank pursuant to paragraphs 3, 6 and 7 above.

11.  Any determination by the Facility Agent pursuant to this Schedule in
     relation to a formula, the Mandatory Cost, an Additional Cost Rate or any
     amount payable to a Lender shall, in the absence of manifest error, be
     conclusive and binding on all parties.

12.  The Facility Agent may from time to time, after consultation with the
     Parent and the Lenders, determine and notify to all parties any amendments
     which are required to be made to this Schedule in order to comply with any
     change in law, regulation or any requirements from time to time imposed by
     the Bank of England, the Financial Services Authority or the European
     Central Bank (or, in any case, any other authority which replaces all or
     any of its functions) and any such determination shall, in the absence of
     manifest error, be conclusive and binding on all parties.

                                   112

<PAGE>

                     SIGNATORIES TO THE FACILITIES AGREEMENT

PARENT

AGZ HOLDING

    /s/ Francois Varagne
    -------------------------------------
By: Francois Varagne
    Directeur General Delegue

NOTICE DETAILS

Address:   Immeuble Les Renardieres
           3, place de Saverne
           92400 Courbevoie
Facsimile: 33 1 41 88 73 13
Attention: Finance Director

ANTARGAZ

    /s/ Francois Varagne
    -------------------------------------
By: Francois Varagne
    President-Directeur General

NOTICE DETAILS

Address:   Immeuble Les Renardieres
           3, place de Saverne
           92400 Courbevoie
Facsimile: 33 1 41 88 73 13
Attention: Finance Director

ARRANGER, LENDER, FACILITY AGENT AND SECURITY AGENT
CALYON

    /s/ Jacques Pochon and Jerome Del Ben
    -------------------------------------
By: Jacques Pochon and Jerome Del Ben

NOTICE DETAILS

Address:   Leverage and Financial Sponsors Group
           9 quai du President Paul Doumer
           92920 Courbevoie Cedex
           France
Facsimile: +33 1 41 89 39 53 / 14 33
Attention: Jerome Del Ben / Victoria Becq-Giraudon

                                      113

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