Document:

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                                                                    EXHIBIT 10.8

                             SUB-SERVICING AGREEMENT

                                     between

                      GREAT LAKES CAPITAL ACCEPTANCE, LLC,

                           GREAT LAKES FUNDING I, LLC,

                                       and

                     WENDOVER FINANCIAL SERVICES CORPORATION

                            Dated as of May 10, 2003

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                             SUB-SERVICING AGREEMENT

THIS SUB-SERVICING AGREEMENT (the "Agreement"), dated as of May 10, 2003 (the
"Effective Date"), is between Great Lakes Capital Acceptance, LLC, an Illinois
limited liability company ("GLCA"), and Great Lakes Funding I, LLC, an Illinois
limited liability company ("GLF")(GLCA and GLF are hereafter collectively
referred to as the "Client"), and Wendover Financial Services Corporation, a
North Carolina corporation ("Wendover").

                             PRELIMINARY STATEMENTS

Whereas, Client owns the rights to service certain Mortgage Loans; and

Whereas, Wendover is engaged in the business of sub-servicing Mortgage Loans;
and

Whereas, Client desires to engage Wendover to perform certain sub-servicing
functions regarding the Mortgage Loans, as set forth herein.

Now, therefore, in consideration of the mutual covenants herein contained and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Client and Wendover agree as follows:

                      ARTICLE I. SCOPE, TERM & DEFINITIONS

1.1     Scope. This Agreement documents the terms and conditions under which
        Wendover agrees to perform mortgage loan sub-servicing on behalf of
        Client, and the terms and conditions under which Client agrees to
        purchase such services from Wendover.

1.2     Term; Renewal The term of this Agreement will commence as of the
        Effective Date and, unless earlier terminated in accordance with the
        terms set forth in Article VII hereof, will remain in full force and
        effect through ****. This Agreement may be extended upon the mutual
        written agreement of the parties.

1.3     Definitions. All capitalized words and phrases used in this Agreement,
        unless the context otherwise requires, will have the meanings set forth
        in Exhibit A.

                       ARTICLE II. DESCRIPTION OF SERVICES

2.1     The Services, Generally. Client hereby engages Wendover to perform, and
        Wendover agrees to perform, the Services described herein in accordance
        with the (i) Roles and Responsibilities Matrix set forth on Exhibit B
        hereof, (ii) other Applicable Requirements, and (iii) terms and
        conditions of this Agreement; provided, however, that when Applicable
        Requirements conflict with the terms of this Agreement, the terms of
        this Agreement will control.

CONFIDENTIAL Sub-Servicing Agreement                                           1

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2.2     Delivery and Possession of Servicing Files.

        (a)     Wendover will begin to sub-service those Mortgage Loans
                identified on the Mortgage Loan Schedule as of the initial
                Transfer Date, with the understanding that on or before the
                Transfer Date for each Mortgage Loan, Client will deliver, at
                Client's expense, the Servicing Files and Mortgage Records to
                Wendover's designated facility. Wendover will retain copies of
                such Servicing Files and Mortgage Records for the sole purpose
                of sub-servicing the related Mortgage Loans. Additional hard
                copy documents created or obtained by Wendover in connection
                with a Mortgage Loan may also be maintained in the Servicing
                File.

        (b)     It is the intent of the parties that Wendover perform the
                Services with respect to all mortgage loans for which Client
                acquires servicing rights after the Effective Date and, to that
                end, Client will offer Wendover the opportunity to provide the
                Services with respect to such mortgage loans. If Wendover
                accepts such opportunity, the parties will amend the Mortgage
                Loan Schedule accordingly, and Client will provide such
                information regarding the additional Mortgage Loans as Wendover
                may request. Within thirty (30) days following the receipt of
                such request and information, Wendover will provide Client with
                written notice of any required amendments to the fees or other
                terms of this Agreement and, if acceptable to Client, the
                parties will agree upon such changes in writing, in accordance
                with the procedures set forth in Section 2.14 hereof.
                Notwithstanding anything in this Agreement to the contrary, in
                the event Wendover is required to report to GNMA under Client's
                assigned "Seller/Servicer" number, then Wendover will provide
                Services with respect to all Mortgage Loans to be reported under
                such number.

        (c)     Client will be solely responsible for advising any Custodian of
                each Transfer Date and will direct the Custodian to deliver to
                Wendover, at Client's expense, any documents as are necessary
                for Wendover to perform its duties under this Agreement. It is
                expressly understood and agreed that Client, or Client's
                Custodian, will have sole responsibility for the maintenance
                and/or retention of original copies of all Mortgage Loan-related
                documents.

        (d)     If Wendover receives Mortgage Records electronically, it may
                rely solely on the information received electronically and will
                have no responsibility to compare the information received
                electronically to the information in the Servicing Files;
                provided, however, if in the course of performing services
                hereunder, Wendover detects inconsistencies between information
                received electronically and information received on hard copy
                documents, Client hereby authorizes Wendover to revise the
                electronic files accordingly, and agrees that Wendover will have
                no liability therefor.

CONFIDENTIAL Sub-Servicing Agreement                                           2

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2.3     Representatives; Delegation of Authority; Consents; Cooperation.

        (a)     In order to facilitate effective communication and to achieve
                order and accountability in the performance of the parties'
                respective obligations under this Agreement, each party will
                designate in writing a single person (the "Client
                Representative" or the "Wendover Representative", as
                appropriate), who will have the obligation and authority to make
                timely and binding decisions relating to that party's rights,
                duties and obligations hereunder. Each party may change its
                designated Representative from time to time upon written notice
                to the other party. Client hereby designates Jeffrey Bromley as
                the Client Representative and Wendover designates
                Jeffrey L. Briggs as the Wendover Representative.

        (b)     Except as specifically set forth herein, Wendover will have full
                power and authority, acting alone and as an independent
                contractor, to do any and all things necessary to perform the
                Services that Wendover may deem necessary or desirable. Without
                limiting the generality of the foregoing, Wendover is hereby
                authorized and empowered to execute and deliver, on behalf of
                Client, all instruments of satisfaction, cancellation, partial
                or full release or discharge and all other comparable
                instruments with respect to the Mortgage Loans and the Mortgaged
                Properties. In addition, Wendover is hereby authorized to
                endorse checks made out to Client and to deposit same into the
                appropriate custodial account. Upon Wendover's reasonable
                request, Client will furnish Wendover with such limited powers
                of attorney and other documents necessary or appropriate to
                enable Wendover to carry out its duties under this Agreement.
                Nothing in this Agreement will impose responsibility or
                liability on Wendover for any underwriting functions regarding
                any Mortgage Loan.

        (c)     Wendover may from time to time provide to the Client
                Representative, for Client's consent, a written description of a
                course of action that Wendover proposes to take under this
                Agreement, notwithstanding that Client's consent may not be
                required with respect thereto. Unless the Client Representative
                gives written notice to Wendover that Client objects to any
                recommended course of action within five (5) days of receipt of
                Wendover's recommendation, Client will be deemed to have
                consented to, and Wendover may take, such recommended course of
                action. If the Client Representative objects in writing to
                Wendover's recommended course of action within five (5) days of
                receipt of Wendover's recommendation, Wendover will not take its
                recommended course of action and will take such mutually
                agreeable action as may be recommended in writing by the Client
                Representative.

        (d)     Client will use its commercially reasonable efforts to cooperate
                with and assist Wendover in Wendover's performance of its
                obligations hereunder, and will promptly execute and deliver all
                instruments, agreements or documents, and take or cause to be
                taken such other action as may be necessary or appropriate in
                furtherance thereof.

CONFIDENTIAL Sub-Servicing Agreement                                           3

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2.4     P&I Custodial Account.

        (a)     Wendover will hold payments of principal and interest on the
                Mortgage Loans separate from its own funds and deposit same in
                the P&I Custodial Account. Wendover acknowledges and agrees that
                the P&I Custodial Account shall be subject to the Blocked
                Account Control Agreement.

        (b)     Wendover will (i) select the depository institution in which the
                P&I Custodial Account is maintained, (ii) receive all benefits
                to be derived from the P&I Custodial Account, including interest
                earned, and (iii) be responsible for all bank charges incurred
                on such account. Wendover will be entitled to retain for its own
                benefit and will not deposit in the P&I Custodial Account any
                ancillary income from the Mortgage Loans, including late payment
                fees, returned check fees, assumption fees and satisfaction
                fees.

        (c)     Wendover may, from time to time, withdraw funds from the P&I
                Custodial Account in accordance with the terms of this
                Agreement.

2.5     INTENTIONALLY OMITTED.

2.6     Hazard Insurance. Wendover will cause to be maintained for each Mortgage
        Loan such fire, flood and hazard insurance as required by Applicable
        Requirements; provided, however, notwithstanding the foregoing, the
        provisions of the Mortgage Note and Mortgage will govern. The mortgagee
        clause will be reflected as running to the benefit of Client, its
        successor and assigns, as follows: "Client, its successors and assigns,
        c/o Wendover Financial Services Corporation", at such address as
        Wendover will designate in writing from time to time. Any amounts
        collected by Wendover under any such policies will be paid over or
        applied by Wendover in accordance with Applicable Requirements whether
        for the restoration or repair of the Mortgaged Property, or applied to
        reduce the Mortgage Loan. Wendover will not interfere with the
        Mortgagor's freedom of choice in selecting either an insurance carrier
        or agent upon any policy renewal; provided, however, that upon any such
        policy renewal, Wendover will accept insurance policies only from
        insurance companies that meet the written requirements of Fannie Mae.
        Wendover will not be required to maintain the original insurance policy
        for any Mortgaged Property; provided, however, that in the event that
        Wendover is required to do so by Applicable Requirements, Wendover will
        obtain and maintain such insurance policies covering the greater of (i)
        the last known coverage paid for by Mortgagor, or (ii) the unpaid
        principal balance of the Mortgage Note. If Wendover is unable to collect
        from the Mortgagor the cost of such policies, Client will pay Wendover
        such amounts in accordance with Article IV hereof. Notwithstanding
        anything in this Agreement to the contrary, Wendover may at any time and
        from time to time solicit Mortgagors for accident, health, life,
        property or casualty insurance and other miscellaneous services (with
        the exception of refinancing), and any fees payable by any insurer will
        be the exclusive property of Wendover.

CONFIDENTIAL Sub-Servicing Agreement                                           4

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2.7     Inspections. Upon Wendover's receipt of actual notice that a Mortgaged
        Property is vacant or abandoned, and if required by the Roles and
        Responsibilities Matrix, Wendover will arrange for inspections of such
        Mortgaged Property (i) regarding any Mortgage Loan that is more than
        **** delinquent in the payment of any obligations, and (ii) at such
        other times and in a manner consistent with Applicable Requirements.
        Wendover will use reasonable efforts to secure such Mortgaged Property,
        and attempt to recover from the Mortgagor the expenses associated
        therewith, provided, however that Client remains liable for such
        expenses and if Wendover is unable to recover such expenses from the
        Mortgagor, Client will pay Wendover such amounts in accordance with
        Article IV hereof.

2.8     Satisfaction of Mortgages. Upon the payment in full of any Mortgage
        Loan, or the receipt by Wendover of a notification that payment in full
        will be escrowed in a manner customary for such purposes, Wendover will
        prepare and process any required satisfaction or release of the
        Mortgage. Wendover will attempt to collect from the Mortgagor all
        expenses incurred in connection with any instrument of satisfaction or
        deed of reconveyance, said costs to be within industry standards. If
        Wendover is unable to recover such expenses from the Mortgagor, Client
        will pay Wendover such amounts in accordance with Article IV hereof.

2.9     Assumption Agreements. To the extent it has knowledge and is required by
        Applicable Requirements to do so, Wendover will notify the Client of the
        sale or pending sale of a Mortgaged Property whether by absolute
        conveyance or by contract of sale, and whether or not the Mortgagor
        remains liable on the Mortgage and the Mortgage Note. Without assuming
        responsibility or liability for underwriting decisions whatsoever,
        Wendover will follow Applicable Requirements regarding an assumption;
        provided, however, that Wendover will not exercise rights of
        acceleration if prohibited by law from doing so or if the exercise of
        such rights would impair or threaten to impair any recovery under any
        FHA insurance or VA guaranty. For purposes of this Section 2.9, the term
        "assumption" is deemed to also include a sale of the Mortgaged Property
        subject to the Mortgage that is not accompanied by an assumption or
        substitution of liability agreement.

2.10    INTENTIONALLY OMITTED.

2.11    INTENTIONALLY OMITTED.

2.12    Distributions; Advances.

        (a)     Upon Wendover's receipt of payments on the Mortgage Loans,
                Wendover will, subject to Section 4.1 hereof, remit same to
                Client in accordance with the remittance instructions set forth
                in Applicable Requirements or other written instructions
                mutually agreed upon by Wendover and Client.

        (b)     The parties acknowledge that, notwithstanding anything in the
                Applicable Requirements or this Agreement to the contrary,
                Wendover will have no obligation whatsoever to make any advances
                to any third party.

CONFIDENTIAL Sub-Servicing Agreement                                           5

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2.13    Statements to Client and Reporting Requirements. Wendover will send to
        Client via United States mail, statements setting forth information with
        respect to the Mortgage Loans as required by Applicable Requirements.

2.14    Additional Services.

        (a)     From time to time, Client may request Wendover to perform
                Additional Services (including, without limitation, any and all
                technical and personnel resources required to (i) accommodate
                and assist the audits described in Section 3.2; (ii) support
                Client's securitization efforts; (iii) accommodate changes in
                the Material Assumptions, the Roles and Responsibilities Matrix
                or other Applicable Requirements; or other requirements of
                Client, including without limitation support for litigation,
                mergers, acquisitions and other transactions); (iv) accommodate
                changes in the type or timing of remittances; (v) support
                amendments to the Mortgage Loan Schedule; and (vi) develop ad
                hoc reports, etc.).

        (b)     Wendover will provide to Client such Additional Services as
                Client may reasonably request in writing from time to time
                during the term of this Agreement and with respect to which the
                parties have reached written agreement regarding the nature and
                scope of such Additional Services. Such agreement with respect
                to any Additional Services will be set forth in a written letter
                agreement which will contain the following information, as
                applicable: (i) a reference to this Agreement, which reference
                will be deemed to incorporate all of the provisions of this
                Agreement; (ii) the date as of which the provisions of the
                letter will become effective and, if applicable, the term or
                period of time during which the services or resources referenced
                therein will be provided; (iii) a description of the services or
                resources to be provided by Wendover pursuant to the letter;
                (iv) a description of Client's responsibilities relating to the
                letter, including any facilities, hardware, software or other
                support that will be required; (v) the amounts payable for the
                services or resources provided pursuant to the letter and the
                schedule on which such amounts will be invoiced; and (vi) any
                additional provisions applicable to the services or resources to
                be provided pursuant to the letter that are not otherwise set
                forth in this Agreement or that are exceptions to the provisions
                set forth in this Agreement.

2.15    Location of Services. Notwithstanding anything to the contrary in this
        Agreement, Wendover may, in its sole discretion, perform the Services or
        any portion thereof from any location determined by Wendover, or
        relocate any software or equipment used by Wendover to perform the
        Services; provided however, that any change in service location made by
        Wendover in its sole discretion shall not (i) materially and adversely
        impact Wendover's ability to perform its obligations hereunder, (ii)
        increase Client's fees or costs (unless Wendover agrees to reimburse
        Client for such increase in Client's fees and costs), or (iii)
        materially and adversely impact the way in which Client conducts its
        business or operations.

CONFIDENTIAL Sub-Servicing Agreement                                           6

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2.16    Client Facilities. At any time during the term of this Agreement,
        Wendover may propose to Client an arrangement under which Wendover may
        use all or a portion of the Client facilities from which Wendover is
        performing the Services hereunder (the "Client Facilities") to perform
        services for other clients of Wendover. At the time that the parties
        enter into such arrangement, the parties will negotiate in good faith to
        determine and agree upon the appropriate terms and conditions relating
        to Wendover' use of such Client Facilities for other Wendover clients.

          ARTICLE III. DATA, CONFIDENTIALITY, AUDIT RIGHTS, CONTINGENCY
                             PLANNING AND INSURANCE

3.1     Client Data. As between Wendover and Client, information relating to
        Client or its customers (the "Client Data") that is provided by Client
        hereunder is and will remain the property of Client. Wendover is hereby
        authorized to have access to and to make use of the Client Data for the
        term of this Agreement as is appropriate for the performance by Wendover
        of its obligations hereunder. Wendover will maintain safeguards against
        the destruction, loss or alteration of the Client Data in the possession
        of Wendover. Upon expiration or termination of this Agreement for any
        reason, Wendover will, at Client's expense, return to Client all of the
        Client Data in Wendover's possession and in Wendover's then existing
        machine-readable format and media. Wendover will not use the Client Data
        for any purpose other than providing the Services. If Client Data is
        required to be disclosed pursuant to a requirement of a governmental
        authority, such Client Data may be disclosed so long as and to the
        extent possible Wendover provides Client with timely prior notice of
        such requirement and coordinates with Client in an effort to limit the
        nature and scope of such required disclosure.

3.2     Audits. Upon written request and reasonable advance notice, Wendover
        will, at Client's expense, make available during Wendover's business
        hours, its facilities and Servicing Files for audit by:

        (i)     Employees of Client and its auditors who are from time to time
                designated by Client and who agree in writing to the security
                and confidentiality obligations and procedures reasonably
                required by Wendover; and

        (ii)    A prospective investor who desires, with Client's written
                consent, to examine the Servicing Files and other records
                relating to Mortgage Loans; and

        (iii)   Client or other third party who requests (or demands through
                issuance of subpoena or otherwise) Wendover at any time,
                including after the termination of this Agreement, to retrieve
                information regarding a Mortgage Loan from Wendover's inactive
                records; and

        (iv)    Any state or jurisdiction that, because of the geographic
                location of Client's offices, the Mortgaged Property or other
                aspect of any of the Mortgage Loans, requires an audit of
                Wendover's facilities or Servicing Files.

CONFIDENTIAL Sub-Servicing Agreement                                           7

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        Notwithstanding anything to the contrary in this Agreement, Wendover
        will not be required to provide access to the proprietary data of
        Wendover or other Wendover customers. Client and its agents,
        representatives and auditors will keep confidential all information
        learned or exchanged in connection with the conduct of an audit, as well
        as the results of any audit.

3.3     Reimbursement for Audit-related Expenses. Client will reimburse Wendover
        for expenses incurred in connection with all audits and reviews,
        including but not limited to the allocated cost of the time of
        Wendover's personnel. With respect to any audit required by any state or
        jurisdiction as described in Section 3.2(iv), Wendover's expenses will
        be charged to Client on a pro rata basis, based on the number of
        Mortgage Loans serviced hereunder compared to all other mortgage loans
        serviced or sub-serviced by Wendover in such state or jurisdiction, and
        shall be payable in accordance with Section 4.3 hereof.

3.4     Reproduction of Documents. This Agreement and all documents relating
        hereto, including without limitation (i) consents, waivers and
        modifications that may hereafter be executed, (ii) documents received by
        any party at the closing, and (iii) financial statements, certificates
        and other information previously or hereafter furnished, may be
        reproduced by any photographic, photocopy, microfilm, microcard,
        miniature photographic or other similar process. Any such reproduction
        will be admissible in evidence as the original itself in any judicial or
        administrative proceeding, whether or not the original is in existence
        and whether or not such reproduction was made by a party in the regular
        course of business, and that any enlargement, facsimile or further
        reproduction of such reproduction will likewise be admissible in
        evidence.

3.5     Data Access. If Wendover has issued to Client a data access security
        system in order that Client may access certain data and functions,
        Client will:

        (i)     Access data and functions only in accordance with the Data
                Access Procedures described in Exhibit H and to regard and
                preserve as confidential all information obtained with respect
                to the issuance to Client of a data access security system;

        (ii)    Indemnify Wendover against and hold Wendover harmless from all
                Losses howsoever arising or incurred because of or in connection
                with the access of data and functions by Client and the use by
                Client or any of its employees, whether authorized or
                unauthorized, of the data access security system; and

        (iii)   Designate a Client employee to serve as the Data Security
                Administrator, who will be responsible for (1) receiving and
                maintaining all documents and correspondence assigning,
                confirming, or otherwise containing user identification codes,
                passwords mnemonics, test keys, encryption keys and other
                security devices and/or information from Wendover and (2)
                administering and monitoring Client's security procedures in
                accordance with the Data Access Procedures set forth on Exhibit
                H. Unless otherwise designated in writing by Client, the Data
                Security Administrator will be the Client Representative
                identified by Client pursuant to Section 2.3(a) hereof.

CONFIDENTIAL Sub-Servicing Agreement                                           8

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3.6     Delivery of Financial Information and Reports. Each party will deliver
        to the other, within ten (10) days after the publication of its annual
        report, or one hundred twenty (120) days after the end of its fiscal
        year, whichever is earlier, a copy of:

        (i)     Its consolidated balance sheet and consolidated subsidiaries, if
                any, as at the end of the most recent fiscal year, and

        (ii)    Its consolidated statements of operations and retained earnings,
                and cash flows of it and its consolidated subsidiaries, if any,
                for such year.

        Each such statement will set forth in comparative form the figures for
        the previous fiscal year and will be accompanied by an opinion of a firm
        of independent certified public accountants of recognized national
        standing that such financial statements present fairly the financial
        position, results of operations and cash flows of the party and have
        been prepared in accordance with generally accepted accounting
        principles consistently applied (except for changes in application in
        which such accountants concur).

3.7     Contingency Planning. The parties' responsibilities with respect to
        contingency planning will be as follows:

        (a)     Wendover will develop, maintain and, as necessary in the event
                of a disaster, execute a disaster recovery plan (the "Wendover
                Plan") for the Wendover location from which Wendover provides
                Services hereunder (the "Wendover Servicing Center") and will
                provide to Client and its auditors and inspectors such access to
                review the Wendover Plan (at Client's expense) as Client may
                reasonably request from time to time. Wendover will not be
                required to provide access to information of other Wendover
                clients.

        (b)     Client will develop, maintain and, as necessary in the event of
                a disaster, execute a business resumption plan (the "Client
                Plan") for all Client locations and the telecommunications links
                between Client locations and the Wendover Servicing Center and
                will provide to Wendover such access to review the Client Plan
                (at Wendover's expense) as Wendover may reasonably request from
                time to time.

        (c)     Upon Client's request, Wendover will provide summary reports of
                tests of the Wendover Plan or if commercially feasible invite
                Client to participate in tests. Client shall be responsible to
                assure that the Client Plan is compatible with the Wendover
                Plan.

        (d)     Each party will be responsible for the training of its own
                personnel as required in connection with all applicable
                contingency planning activities.

3.8     Insurance. Wendover shall maintain insurance as required by law, as well
        as other commercially reasonable coverages including, but not limited
        to, coverage for employee

CONFIDENTIAL Sub-Servicing Agreement                                           9

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        fidelity, general liability and errors and omissions. Policy terms,
        limits and deductibles shall be as deemed appropriate by Wendover.

                        ARTICLE IV. PAYMENTS TO WENDOVER

4.1     Fees. In consideration for the performance of the Services, Client will
        pay Wendover the fees and charges set forth on Exhibits C and C.1, in
        accordance with the terms and conditions set forth therein.

4.2     Miscellaneous and Out-of-Pocket Expenses. Unless otherwise expressly set
        forth herein, Client will reimburse Wendover for any out-of-pocket
        expenses incurred by Wendover hereunder, whether such expenses are
        incurred pursuant to requests by Client, or as a result of sub-servicing
        the Mortgage Loans (including, without limitation, expenses related to
        property preservation, recording fees for foreclosures and lien
        releases, and shipping charges). Upon the reasonable request of Client,
        Wendover will provide Client with an itemized listing of the applicable,
        which will be due and payable as set forth in Section 4.3 hereof, or may
        be recouped by Wendover as set forth in Section 4.1 hereof.
        Notwithstanding the foregoing, however, Wendover shall incur no such
        out-of-pocket expenses in excess of **** without the prior approval of
        Client.

4.3     Method of Payment.

        (a)     Unless otherwise specifically set forth in this Agreement,
                Wendover will deduct or "net" any amount due hereunder from any
                funds held by Wendover on behalf of Client prior to disbursing
                to Client such funds. All amounts that are not "netted" shall be
                due and payable ten (10) days following receipt by Client of the
                invoice from Wendover therefor. If Client does not notify
                Wendover of any invoice items in dispute within ten (10) days
                following receipt of an invoice from Wendover, Client will be
                deemed to have approved and accepted such invoice. All amounts
                will be payable to Wendover by check, wire transfer, or ACH, in
                accordance with payment instructions provided by Wendover from
                time to time, so as in each case to constitute immediately
                available funds by 12 noon, Plano, Texas time, on the payment
                date no matter what the method of payment. If a due date does
                not fall on a Business Day, payments must be received by
                Wendover on or before one (1) Business Day prior to such date.

        (b)     Any amount not paid when due as set forth in this Agreement will
                bear interest until paid at a rate of interest equal to the
                lesser of ****. If any portion of an amount due to Wendover
                under this Agreement is subject to a bona fide dispute between
                the parties, Client will pay to Wendover on the date such amount
                is due all amounts not disputed in good faith by Client. Within
                ten (10) days of the date of the invoice on which a disputed
                amount appears, Client will notify Wendover in writing of the
                specific

CONFIDENTIAL Sub-Servicing Agreement                                          10

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                items in dispute, will describe in detail Client's reason for
                disputing each such item, and will deposit such disputed amount
                into an escrow account established in the manner set forth in
                Section 6.3. Within seven (7) days of Wendover's receipt of such
                notice, the parties will begin to negotiate in good faith
                pursuant to the provisions of Article VI to reach settlement on
                any items that are the subject of such dispute. If Client does
                not notify Wendover of any invoice items in dispute within ten
                (10) days following receipt of an invoice from Wendover, Client
                will be deemed to have approved and accepted such invoice.
                Notwithstanding anything to the contrary in this Agreement, in
                no event may Client withhold in any one month, as a disputed
                amount, more than **** of Wendover's charges (exclusive of
                reimbursable expenses) for that month.

4.4     Taxes. There will be added to any charges under this Agreement, and
        Client will either pay to Wendover, or reimburse Wendover for the
        payment of, amounts equal to any taxes, assessments, duties, permits,
        fees and other charges of any kind, however designated, assessed,
        charged or levied, based on, with respect to or measured by (i) such
        charges, (ii) this Agreement, or (iii) the Services, software,
        equipment, materials or other property (tangible or intangible), or the
        use thereof or the resources used therefor, that are provided under this
        Agreement. Charges payable under this Section 4.4 include state and
        local sales taxes, use taxes, property taxes, telecommunications taxes,
        privilege taxes, excise taxes (including federal excise taxes), value
        added taxes and any taxes or amounts in lieu thereof paid or payable by
        Wendover in respect of the foregoing, exclusive however, of taxes based
        on the net income of Wendover.

4.5     Charges for Additional Services. In consideration for any agreement by
        Wendover to provide Additional Services, Client will pay to Wendover the
        amounts mutually agreed to in writing by Wendover and Client for such
        Additional Services, and the miscellaneous and out-of-pocket expenses
        incurred by Wendover in connection therewith.

                    ARTICLE V. REPRESENTATIONS AND WARRANTIES

5.1     Client Representations and Warranties. Client hereby represents and
        warrants to Wendover as of the Transfer Date for each Mortgage Loan:

        (a)     Client is a limited liability company duly organized, validly
                existing and in good standing under the laws of the state under
                which it was organized and to the best of Client's knowledge has
                all licenses and is in compliance with all regulations necessary
                to carry on its business as now being conducted and is licensed,
                qualified and in good standing in the states where the Mortgaged
                Properties are located if the laws of such states require
                licensing or qualification in order to hold its interest in the
                Mortgage Loans.

        (b)     Client has the power and authority to enter into, execute and
                deliver this Agreement and all documents and instruments
                executed and delivered pursuant hereto and to perform its
                obligations in accordance herewith; the execution,

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<PAGE>

                delivery and performance of this Agreement (including all
                instruments of transfer to be delivered pursuant thereto) by
                Client and the consummation of the transactions contemplated
                hereby have been duly and validly authorized; this Agreement
                evidences the valid, binding and enforceable obligations of
                Client; and all requisite corporate action has been taken by
                Client to make this Agreement valid and binding upon Client in
                accordance with its terms.

        (c)     No consent, approval, authorization or order of any court or
                governmental agency or body relating to the transactions
                contemplated by this Agreement is required or, if required, such
                consent, approval, authorization or order has been or will,
                prior to the Transfer Date, be obtained.

        (d)     The consummation of the transactions contemplated by this
                Agreement and the fulfillment of or compliance with the terms
                and conditions of this Agreement are in the ordinary course of
                business of Client and will not result in the breach of any term
                or provision of the articles of organization or operating
                agreement of Client or result in the breach of any term or
                provision of, or conflict with or constitute a default under, or
                result in the acceleration of any obligation under, any
                agreement, indenture, loan, credit agreement or other instrument
                to which Client or its property is subject, or result in the
                violation of any law, rule, regulation, order, judgment or
                decree to which Client or its property is subject.

        (e)     Client owns all rights to service the Mortgage Loans. If any
                Mortgage Loan is an FHA Loan, a GNMA Loan or a VA Loan, Client
                is an approved Seller/Servicer in good standing with FHA, GNMA
                or VA, as applicable.

        (f)     Each Mortgage Loan has been originated and serviced in
                compliance with all applicable (i) federal, state and local
                laws, statutes, regulations and ordinances and (ii) requirements
                of any Mortgage Loan insurers, including without limitation,
                FHA, HUD and VA.

        (g)     All real estate taxes on each Mortgage Loan have been paid in
                full at least forty-five (45) days before the applicable tax
                delinquent date; provided, however, this representation and
                warranty will not apply regarding Mortgage Loans as to which no
                tax information is reasonably available. Notwithstanding the
                foregoing, all real estate taxes on each Mortgage Loan that have
                been or may become delinquent within thirty (30) days of the
                Transfer Date have been paid in full.

        (h)     Client has reviewed and understands (i) the Roles and
                Responsibilities Matrix and represents that it can perform each
                and every obligation set forth in this Agreement; and (ii) the
                Material Assumptions and the Mortgage Loan Schedule and
                represents that the information set forth therein is current,
                accurate and complete.

5.2     Wendover Representations. Wendover hereby represents and warrants to
        Client as of the Effective Date:

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<PAGE>

        (a)     Wendover is a corporation duly organized, validly existing and
                in good standing under the laws of the state of North Carolina
                and to the best of Wendover's knowledge has all licenses and is
                in compliance with all regulations necessary to carry on its
                business as now being conducted and is licensed, qualified and
                in good standing in the states where the Mortgaged Properties
                are located if the laws of such states require licensing or
                qualification in order to conduct business of the type conducted
                by Wendover hereunder.

        (b)     Wendover has the corporate power and authority to enter into,
                execute and deliver this Agreement and all documents and
                instruments executed and delivered pursuant hereto, and to
                perform its obligations in accordance herewith; the execution,
                delivery and performance of this Agreement by Wendover and the
                consummation of the transactions contemplated hereby have been
                duly and validly authorized; this Agreement evidences the valid,
                binding and enforceable obligations of Wendover; and all
                requisite corporate action has been taken by Wendover to make
                this Agreement valid and binding upon Wendover in accordance
                with its terms.

        (c)     No consent, approval, authorization or order of any court or
                governmental agency or body is required for Wendover to enter
                into this Agreement or, if required, such consent, approval,
                authorization or order has been or will, prior to the Transfer
                Date, be obtained.

        (d)     The consummation of the transactions contemplated by this
                Agreement and the fulfillment of or compliance with the terms
                and conditions of this Agreement are in the ordinary course of
                business of Wendover and will not result in the breach of any
                term or provision of the articles of incorporation or by-laws of
                Wendover or result in the breach of any term or provision of, or
                conflict with or constitute a default under, or result in the
                acceleration of any obligation under, any agreement, indenture,
                loan, credit agreement or other instrument to which Wendover or
                its property is subject, or result in the violation of any law,
                rule, regulation, order, judgment or decree to which Wendover or
                its property is subject.

        (e)     Wendover is an approved servicer of conventional Mortgage Loans
                for Fannie Mae and Freddie Mac. Wendover is in good standing to
                service Mortgage Loans for GNMA, FHA and VA.

5.3     Disclaimer of Other Warranties. EXCEPT AS EXPRESSLY SET FORTH IN
        SECTION 5.2, WENDOVER MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR
        IMPLIED, REGARDING ANY MATTER, INCLUDING THE MERCHANTABILITY,
        SUITABILITY, ORIGINALITY, FITNESS FOR A PARTICULAR USE OR PURPOSE, OR
        RESULTS TO BE DERIVED FROM THE USE, OF THE SERVICES PROVIDED UNDER THIS
        AGREEMENT. WENDOVER DOES NOT REPRESENT OR WARRANT THAT THE OPERATION OF
        ANY SOFTWARE WILL BE UNINTERRUPTED OR ERROR-FREE.

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5.4     Remedies for Breach of Representations and Warranties. The
        representations and warranties in this Article V will survive the
        execution and delivery of this Agreement. Upon discovery by either party
        of a breach of the foregoing representations and warranties that
        materially adversely affects the interests of the other party, the party
        discovering such breach will give prompt written notice to the other. In
        the event such breach is not cured within *************** of receipt of
        such written notice, the non-breaching party may terminate this
        Agreement pursuant to the terms of Section 7.1 hereof.

                    ARTICLE VI. DISPUTE RESOLUTION PROCEDURES

6.1     Dispute Resolution. In the event of any dispute, controversy or claim of
        any kind or nature arising under or in connection with this Agreement
        (including disputes as to the creation, validity, interpretation, breach
        or termination of this Agreement) (a "Dispute"), then upon the written
        request of either party, each of the parties will appoint a designated
        senior business executive whose task it will be to meet for the purpose
        of endeavoring to resolve the Dispute. The designated executives will
        meet as often as the parties reasonably deem necessary in order to
        gather and furnish to the other all information with respect to the
        matter in issue which the parties believe to be appropriate and germane
        in connection with its resolution. Such executives will discuss the
        Dispute and will negotiate in good faith in an effort to resolve the
        Dispute without the necessity of any formal proceeding relating thereto.
        The specific format for such discussions will be left to the discretion
        of the designated executives but may include the preparation of agreed
        upon statements of fact or written statements of position furnished to
        the other party. If, after **** following the initial request to
        negotiate the Dispute, the designated executives conclude in good faith
        that the parties are unable to resolve the Dispute, then the Dispute
        will be escalated in accordance with the Dispute resolution procedures
        set forth on Exhibit G hereof.

6.2     Exclusive Remedy. Other than those matters involving injunctive or other
        extraordinary relief or any action necessary to enforce the award of the
        arbitrator, the parties agree that the provisions of this Article VI are
        a complete defense to any suit, action or other proceeding instituted in
        any court or before any administrative tribunal with respect to any
        Dispute or the provision of the Services by Wendover. Nothing in this
        Article VI prevents the parties from exercising their rights to
        terminate this Agreement in accordance with Article VII.

6.3     Continued Performance; Escrow Account. Unless (i) Wendover has commenced
        a proceeding or has presented a claim pursuant to this Article VI for
        nonpayment by Client of amounts due under this Agreement, and Client
        does not promptly pay all amounts in dispute into the escrow account
        referred to below and does not otherwise continue to make payments to
        Wendover in accordance with this Agreement of all amounts not required
        to be so escrowed, or (ii) this Agreement has been terminated in
        accordance with Article VII, Wendover will continue to provide the
        Services hereunder during any dispute resolution proceedings (whether
        informal or formal) commenced pursuant to this Article VI, and Client
        will continue to perform its obligations (including the making of
        payments to

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<PAGE>

        Wendover) in accordance with this Agreement. Up to the maximum amount in
        dispute, any disputed payment will be paid pending resolution of the
        Dispute into an escrow account that is structured by agreement of the
        parties or, if agreement cannot be reached, as directed by the mediator
        or arbitrator, as the case may be, engaged in accordance with this
        Article VI. Any such escrow account will provide for the payment of
        interest on the amounts deposited therein, and the parties (if the
        Dispute is resolved informally) or the mediator or arbitrator, as the
        case may be (if the Dispute is resolved formally), will make the
        determination regarding distribution of such deposited amounts plus
        interest. In addition to the escrow, Client will continue to make
        payment to Wendover of all amounts not in dispute in accordance with
        this Agreement. If Client fails to escrow disputed payments or to
        otherwise continue to make payments to Wendover in accordance with this
        Agreement of all amounts not required to be so escrowed, Wendover may
        apply to any court of competent jurisdiction to seek injunctive relief
        for such failure and will have the right to terminate this Agreement in
        accordance with Section 7.2.

                      ARTICLE VII. TERMINATION OF AGREEMENT

7.1     Termination for Cause. If either party materially defaults in the
        performance of any of its duties or obligations under this Agreement
        (except for a default in payments to Wendover, which will be governed by
        Section 7.2), which default is not substantially cured within sixty (60)
        after written notice is given to the defaulting party specifying such
        default (or, with respect to those defaults that cannot reasonably be
        cured within sixty (60) days, should the defaulting party fail to
        proceed within sixty (60) days to commence curing the default and
        thereafter to proceed with reasonable diligence to substantially cure
        the default), the party not in default may, by giving written notice
        thereof to the defaulting party, terminate this Agreement as of the date
        of receipt by the defaulting party of such notice or as of a future date
        specified in such notice of termination. In addition to the requirements
        of Section 9.6, to be effective and to commence the running of any
        applicable cure period, any notice given pursuant to this Section 7.1
        must explicitly identify the type of notice being given, whether of
        default or termination, and reference this Section 7.1.

7.2     Termination for Nonpayment. If Client defaults in the payment when due
        of any amount due to Wendover pursuant to this Agreement (including the
        payment of past due interest), and does not cure such default **** after
        being given written notice of such default or otherwise does not comply
        with Section 6.3, Wendover may, by giving written notice thereof to
        Client, terminate this Agreement as of the date of receipt by Client of
        such notice or as of a future date specified in such notice of
        termination. In addition to the requirement of Section 9.6, to be
        effective and to commence the running of any applicable cure period, any
        notice given pursuant to this Section 7.2 must explicitly identify the
        type of notice being given, whether of default or of termination, and
        reference this Section 7.2.

7.3     Termination for Bankruptcy and Related Events. Subject to Title 11,
        United States Code, if either party becomes or is declared insolvent or
        bankrupt, is the subject of any proceedings relating to its liquidation,
        insolvency or for the appointment of a receiver or similar officer for
        it, makes an assignment for the benefit of all or substantially all of
        its

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<PAGE>

        creditors or enters into an agreement for the composition, extension or
        readjustment of all or substantially all of its obligations, then the
        other party may, by giving written notice thereof to such party,
        terminate this Agreement as of a date specified in such notice of
        termination.

7.4     Material Assumptions. Client acknowledges and agrees that (i) the fees
        set forth on Exhibit C are contingent upon the validity of the Material
        Assumptions set forth on Exhibit D and, (ii) if any of the Material
        Assumptions are, at any time during the term of this Agreement, invalid,
        then Wendover and Client will negotiate in good faith an equitable
        adjustment in Wendover's fees. If the parties fail to agree to such an
        adjustment within ****, then Wendover may terminate this Agreement ****
        written notice, and Client will pay Wendover the Exit Fee described in
        Exhibit C, which amount will be due and payable prior to the effective
        date of termination.

7.5     Termination for Events Related to Line of Credit. If Wendover receives
        from Textron a copy of a Shifting Control Notice pursuant to the Blocked
        Account Control Agreement or directions regarding the Proceeds and
        Instruments and Documents pursuant to the Bailee Agreement and Waiver,
        or Client otherwise defaults under its line of credit with Textron, then
        Wendover may, by giving written notice to Client, terminate this
        Agreement as of a date specified in such notice of termination.

7.6     Effect of Expiration or Termination. Upon expiration or termination of
        this Agreement, Wendover will cease to perform the Services, and Client
        will pay to Wendover all amounts due to Wendover hereunder for all
        Services performed by or on behalf of Wendover hereunder. The
        termination of this Agreement will in no event relieve the parties of
        any obligation or liability incurred hereunder prior thereto, including
        the payment and indemnification obligations and liabilities set forth
        herein.

7.7     Transition Assistance. In connection with the expiration or termination
        of this Agreement for any reason, and if requested by Client in writing
        within ************************* prior to the applicable expiration date
        or effective date of termination, Wendover will, at Client's written
        request and expense, prepare, execute and deliver to a successor any and
        all of Client's documents and other instruments as may be in Wendover's
        possession, and do such other acts or things necessary or appropriate to
        effect the purposes of such notice of termination. Wendover will
        reasonably cooperate with Client and such successor in effecting the
        termination of Wendover's rights and responsibilities hereunder,
        including, without limitation, the transfer to such successor for
        administration by it of the P&I Custodial Account, and funds thereafter
        received with respect to the Mortgage Loans and to which Wendover is not
        entitled pursuant to this Agreement. Wendover will have no obligation to
        provide any form of transition assistance if Wendover terminates this
        Agreement for cause or pursuant to Section 7.5 hereof. Unless otherwise
        agreed in writing, Client will pay Wendover for such transition
        assistance at Wendover's then current commercial billing rates on a
        monthly basis in advance.

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<PAGE>

                   ARTICLE VIII. INDEMNIFICATION AND LIABILITY

8.1     General Indemnification. Wendover and Client each will be responsible
        for Losses to their respective tangible personal or real property
        (whether owned or leased), and each party agrees to look only to its own
        insuring arrangements (if any) with respect to such Losses. Wendover and
        Client each will be responsible for Losses for the death of or personal
        injury to any person (including any employee of either party) and Losses
        for damages to any third party's tangible personal or real property
        (whether owned or leased), in accordance with the law of the
        jurisdiction in which such Loss is alleged to have occurred. Subject to
        Sections 8.4 and 8.5 hereof, each party will indemnify and defend the
        other party and hold the other party harmless from any and all Losses
        arising out of, under or in connection with claims for which the
        indemnitor is responsible under the preceding sentence.

8.2     Third party Claims. Without limiting Wendover's liability to Client
        under this Agreement, each of the parties acknowledge that by entering
        into and performing its obligations under this Agreement Wendover will
        not assume and should not be exposed to the business and operational
        risks associated with Client's business, and Client therefore agrees to
        indemnify and defend Wendover and hold Wendover harmless from any and
        all third party Losses arising out of the conduct of Client's business,
        including but not limited to the use by Client of the Services, and

        (i)     The action or inaction of any prior servicer of the Mortgage
                Loans;

        (ii)    Tax penalties and interest that arose or accrued through the
                period ending forty-five (45) days after the Transfer Date;

        (iii)   Any dispute between Mortgagor(s) and Client or Mortgagor(s) and
                Wendover, or any dispute between ****;

        (iv)    Insufficient hazard insurance coverage or hazard insurance
                coverage that lapsed prior to the Transfer Date;

        (v)     Inaccurate or incomplete information supplied to Wendover by
                Client or any agent, consultant, vendor, subcontractor or
                representative thereof;

        (vi)    Advances for negative amortization;

        (vii)   Damage to person or property occurring on a Mortgaged Property;

        (viii)  Wendover's appearance or participation in, or defense of, any
                legal action that is ancillary to Wendover's duties under this
                Agreement and that in its opinion may involve it in any expense
                or liability; provided, however, that Wendover may with the
                consent of Client, undertake any such action that it may deem
                necessary or

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<PAGE>

                desirable with respect to this Agreement and the rights, duties
                and the interests of the parties hereto. In such event, Client
                will be responsible for the Losses and will reimburse Wendover
                therefor; and

        (ix)    Any environmental matters or claims relating to or arising from
                the Mortgaged Properties, including but not limited to
                violations of federal, state or local laws, regulations or
                ordinances.

8.3     Exclusions.

        (a)     Wendover will not be liable for any action taken or for
                refraining from the taking of any action in good faith pursuant
                to this Agreement, or for any action or inaction in accordance
                with the direction or consent of Client, or any inaction
                resulting from Client's failure to agree regarding a request by
                Wendover for direction or consent in accordance with
                Section 2.3(c) hereof.

        (b)     In addition to the foregoing and not in limitation thereof,
                Wendover will have no liability or obligation for the servicing
                or sub-servicing of the Mortgage Loans prior to the applicable
                Transfer Date.

        (c)     Notwithstanding anything herein to the contrary, Wendover will
                not be construed to have made any representation, warranty or
                guarantee as to the payments under the Mortgage Loans.

8.4     Procedures. The indemnification obligations set forth in
        Sections 8.1 and 8.2 will not apply unless the party claiming
        indemnification:

        (i)     Notifies the other promptly in writing of any matters in respect
                of which the indemnity may apply and of which the notifying
                party has knowledge in order to allow the indemnitor the
                opportunity to investigate and defend the matter; provided,
                however, that the failure to so notify will only relieve the
                indemnitor of its obligations under this Article VIII if and to
                the extent that the indemnitor is prejudiced thereby; and

        (ii)    Gives the other party full opportunity to control the response
                thereto and the defense thereof, including any agreement
                relating to the settlement thereof; provided, however, that the
                indemnitee will have the right to participate in any legal
                proceeding to contest and defend a claim for indemnification
                involving a third party and to be represented by legal counsel
                of its choosing, all at the indemnitee's cost and expense.
                However, if the indemnitor fails to promptly assume the defense
                of the claim, the party entitled to indemnification may assume
                the defense at the indemnitor's cost and expense.

        The indemnitor will not be responsible for any settlement or compromise
        made without its consent, unless the indemnitee has tendered notice and
        the indemnitor has then refused to assume and defend the claim and it is
        later determined that the indemnitor was liable to

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<PAGE>

        assume and defend the claim. The indemnitee agrees to cooperate in good
        faith with the indemnitor at the request and expense of the indemnitor.

8.5     Limitation of Liability.

        (a)     The liability of each party to the other for all damages arising
                out of or related this Agreement, regardless of the form of
                action that imposes liability, whether in contract, equity,
                negligence, intended conduct, tort or otherwise, will be limited
                ****.

        (b)     In no event will the measure of damages payable by either party
                include, nor will either party be liable for, any amounts for
                loss of income, profit or savings or indirect, incidental,
                consequential, exemplary, punitive or special damages of any
                party, including third parties, even if such party has been
                advised of the possibility of such damages in advance, and all
                such damages are expressly disclaimed.

        (c)     The limitations set forth in Sections 8.5(a) and 8.5(b) will not
                apply to the liability of Client under Section 8.2, or to the
                liability of either party to the extent such liability results
                from (i) that party's acts of intentional tortious conduct in
                the performance or nonperformance of its obligations under this
                Agreement or (ii) that party's nonperformance of its payment
                obligations to the other expressly set forth in this Agreement
                for Services performed hereunder or for payment or reimbursement
                of taxes, out-of-pockets expenses or pass-through expenses, and
                Wendover's lost profits on such payments.

        (d)     Each party has a duty to mitigate the damages that would
                otherwise be recoverable from the other pursuant to this
                Agreement by taking appropriate and reasonable actions to reduce
                or limit the amount of such damages.

        (e)     No claim, demand for mediation or arbitration or cause of action
                which arose out of an event or events which occurred more than
                **** the filing of a demand for mediation or arbitration or suit
                alleging a claim or cause of action may be asserted by either
                party against the other.

        (f)     The parties expressly acknowledge that the limitations and
                exclusions set forth in this Article VIII have been the subject
                of active and complete negotiation between the parties and
                represent the parties' agreement taking into account each
                party's level of risk associated with the performance or
                nonperformance of its obligations under this Agreement and the
                payments and other benefits to be derived by each party
                hereunder and thereunder. The provisions of this Article VIII
                will survive the expiration or termination of this Agreement for
                any reason.

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                            ARTICLE IX. MISCELLANEOUS

9.1     Entire Agreement; Amendment; Survival. This Agreement, including the
        Exhibits that are incorporated herein, constitutes the complete and
        exclusive agreement of the parties with respect to the Mortgage Loans,
        and supersedes all prior agreements or understandings, written or oral,
        express or implied, relating to the subject matter hereof. This
        Agreement may be amended only by a written agreement signed by both
        parties. The expiration or termination of this Agreement for any reason
        will not release either party from any liabilities or obligations set
        forth herein or therein which (a) the parties have expressly agreed will
        survive any such expiration or termination or (b) remain to be performed
        or by their nature would be intended to be applicable following any such
        expiration or termination.

9.2     Exhibits. The following exhibits to this Agreement are hereby
        incorporated in and made an integral part of this Agreement:

        Exhibit A ......Definitions
        Exhibit B ......Roles and Responsibilities Matrix
        Exhibit C ......Fees
        Exhibit C.1 ....Other Fees
        Exhibit D ......Material Assumptions
        Exhibit E ......Mortgage Loan Schedule
        Exhibit F ......Intentionally Omitted
        Exhibit G ......Dispute Resolution Procedures
        Exhibit H ......Data Access Procedures

9.3     Effect of Headings. The headings in this Agreement are for purposes of
        reference only and will not limit or otherwise affect the meaning of
        this Agreement.

9.4     Severability of Provisions. If any one or more of the covenants,
        agreements, provisions or terms of this Agreement will be held invalid
        for any reason whatsoever, then such covenants, agreements, provisions
        or terms will be deemed severable from the remaining covenants,
        agreements, provisions or terms of this Agreement and will in no way
        affect the validity or enforceability of the other covenants,
        agreements, provisions or terms of this Agreement. If the invalidity of
        any part, provision, representation or warranty of this Agreement will
        deprive any party of the economic benefit intended to be conferred by
        this Agreement, the parties will negotiate in good faith to develop a
        structure the economic effect of which is nearly as possible the same as
        the economic effect of this Agreement without regard to such invalidity.

9.5     Counterparts; Successors and Assigns. This Agreement may be executed in
        one or more counterparts and by the different parties hereto on separate
        counterparts, each of which, when so executed, will be deemed to be an
        original; such counterparts, together, will constitute one and the same
        agreement. This Agreement may be assigned only with the prior written
        consent of the other party hereto; provided, however, that Wendover

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<PAGE>

        may (i) assign this Agreement to any affiliated entity, and/or (ii)
        assign its rights to Client's payments hereunder, including any
        termination amount payable pursuant to Article VII, to a financial
        institution or other third party in connection with any transaction
        entered into to provide financing related to this Agreement or the
        obligations of Wendover hereunder, and any such assignee may further
        assign its rights hereunder in connection with such financing. Subject
        to all applicable privacy laws, Client acknowledges that Wendover shall
        have the right to disclose this Agreement or other confidential related
        information to professional advisors, financial institutions, or other
        third parties to secure such financing.

9.6     Notices. All notices, requests, demands and other communications that
        are required or permitted to be given under this Agreement will be in
        writing and will be deemed to have been given upon the delivery or
        mailing of such notice, as the case may be, sent by registered or
        certified mail, return receipt requested, postage prepaid; overnight
        express delivery or facsimile to the addresses set forth below. Either
        party may change its designated addressee by giving written notice
        thereof to the other party.

        (a)     If to Client:

                Great Lakes Capital Acceptance, LLC
                Great Lakes Funding I, LLC
                27 East Monroe Street, Suite 700
                Chicago, Illinois  60603
                ATTN:  George Luburich

        (b)     If to Wendover:

                Wendover Financial Services Corporation
                725 North Regional Road
                Greensboro, NC  27409
                ATTN: President

                with a copy to:

                ****

9.7     Force Majeure. Wendover will not be responsible for delays or failures
        in performance resulting from acts beyond its control. Such acts will
        include but not be limited to "acts of God" or third parties, strikes,
        lockouts, riots, acts of war or terrorism, epidemics, nationalization,
        expropriation, currency restrictions, governmental regulations, fire,
        communication line failures, computer viruses, power failures,
        earthquakes or other disasters, or Textron's taking control of the P&I
        Custodial Account pursuant to the

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<PAGE>

        Blocked Account Control Agreement or directing Wendover to deliver
        possession of the Proceeds and Instruments and Documents to Textron or a
        third party pursuant to the Bailee Agreement and Waiver.

9.8     Independent Contractors. The parties hereto are independent contractors
        and nothing in this Agreement will be deemed or construed as
        constituting either party as partner, joint venturer or fiduciary of the
        other, or to create any other form of legal association that would
        impose liability on one party for the act or failure to act of the
        other. Except as otherwise expressly provided in this Agreement, each
        party has the sole right and obligation to supervise, manage, contract,
        direct, procure, perform or cause to be performed all work to be
        performed by it pursuant to this Agreement.

9.9     No Third Party Beneficiaries. This Agreement is for the sole and
        exclusive benefit of Wendover and Client and shall not be deemed to be
        for the direct or indirect benefit of any Mortgagor or any other person
        or entity.

9.10    Subcontracting. Wendover may subcontract any portion of the Services to
        third parties. Wendover will not disclose any confidential information
        of Client to any such subcontractor unless and until the subcontractor
        has agreed in writing to protect the confidentiality of such
        confidential information in the manner required by this Agreement and
        then only to the extent necessary for the subcontractor to perform those
        Services subcontracted to it. Wendover will remain responsible for the
        obligations performed by any of its subcontractors to the same extent as
        if such obligations were performed by Wendover.

9.11    Governing Law. This Agreement will be governed by and construed in
        accordance with the substantive laws of the state of North Carolina,
        without giving effect to any choice-of-law rules that may require the
        application of the laws of another jurisdiction. If any dispute arises
        hereunder, the parties hereto agree that any such dispute will be heard
        in courts of North Carolina or any federal court sitting in North
        Carolina, and Client hereby consents to the jurisdiction of such courts.

9.12    Client. Notwithstanding anything to the contrary set forth in this
        Agreement, the parties agree that (i) Wendover shall submit a single
        invoice, to the address set forth in Section 9.6, for the Services
        performed under this Agreement, even if such Services are provided to
        both GLCA and GLF; (ii) GLCA and GLF each agrees to be jointly and
        severely liable for the obligations (including payment obligations) of
        "Client" under this Agreement; and (iii) all damages or indemnities that
        may be payable over time by Wendover under this Agreement to either GLCA
        or GLF shall not exceed, in the aggregate, the limitation of liability
        set forth in Section 8.5.

CONFIDENTIAL Sub-Servicing Agreement                                          22

<PAGE>

        IN WITNESS WHEREOF, each of Client and Wendover has caused its name to
be signed hereto by its duly authorized representative as of the day and year
first above written.

GREAT LAKES CAPITAL                       WENDOVER FINANCIAL SERVICES
 ACCEPTANCE, LLC                           CORPORATION

By:    /s/ GEORGE LUBURICH II             By:
     ----------------------------            ----------------------------

Name:   GEORGE LUBURICH II                Name:
                                               --------------------------
Title:  PRESIDENT                         Title:
                                                -------------------------

Date:   MAY 10, 2003                      Date:
                                               --------------------------

GREAT LAKES FUNDING I, LLC

By:   /s/ GEORGE LUBURICH II
     -----------------------------

Name:   GEORGE LUBURICH II

Title:  MANAGER

Date:   MAY 10, 2003

Document 130861V8

CONFIDENTIAL Sub-Servicing Agreement                                          23

<PAGE>

                                    EXHIBIT A
                          (to Sub-Servicing Agreement)

                                   DEFINITIONS

All capitalized words and phrases used in this Agreement, unless the context
otherwise requires, will have the meanings set forth below.

Additional Services: All services that are not reflected as Wendover obligations
on the Roles and Responsibilities Matrix, or otherwise expressly agreed to in
this Agreement, that Client may from time to time request, and Wendover may
agree to provide, in accordance with Section 2.14 hereof.

Agency: Any agency of the federal government, including GNMA, FHA and VA.

Agreement: This Sub-Servicing Agreement, including all written amendments
hereof, and all Exhibits incorporated herein.

Applicable Requirements: The Mortgage Loan sub-servicing procedures that
Wendover will follow in performing the Services hereunder, as described in:

        (i)     all applicable federal, state and local laws; and

        (ii)    the written, published requirements of VA or FHA for Mortgage
                Loans that are guaranteed by, or insured by, VA or FHA,
                respectively, including any written and generally published
                amendments thereof; and

        (iii)   the Roles and Responsibilities Matrix, which is attached hereto
                and incorporated into this Agreement as Exhibit B, including any
                mutually agreeable written instructions of Client.

Bailee Agreement and Waiver: That certain Bailee Agreement and Waiver dated of
even date herewith, between Client, Textron, and Wendover.

Bankruptcy: (i) The filing of a petition for the declaration of bankruptcy
pursuant to Chapters 7, 11, 12 or 13 of the Bankruptcy Reform Act of 1978, as
amended; or (ii) the admission in writing of the inability to pay debts as they
become due, the filing of a petition to take advantage of any applicable
insolvency or reorganization statute or the making of an assignment for the
benefit of creditors.

Blocked Account Control Agreement: That certain Blocked Account Control
Agreement dated of even date herewith, between Client, Textron, Wendover, and
JPMorgan Chase Bank.

Business Day: Any day other than (i) a Saturday or Sunday, or (ii) a day on
which banking or savings and loan institutions in the state of North Carolina
are authorized or obligated by law or executive order to be closed or (iii) a
day on which Wendover is closed.

Exhibit A of Sub-Servicing Agreement                                      1 of 4

<PAGE>

Client: Defined in the preamble of this Agreement.

Custodian: The third party designated by Client as the official repository of
all original documents relating to the Mortgage Loans, or any successor in
interest or assign, or any successor custodian designated by Client.

Effective Date: The first date upon which this Agreement will be binding upon
the parties, as defined in the first paragraph of this Agreement.

Exit Fee: The fee payable to Wendover pursuant to Section 7.4 of this Agreement,
as set forth in Exhibit C.

Fannie Mae: The Federal National Mortgage Association.

FHA: The Federal Housing Administration of the United States Department of
Housing and Urban Development.

FHA Loan: A Mortgage Loan identified on the Mortgage Loan Schedule as having FHA
insurance.

Foreclosure: As to any Mortgage Loan, the period beginning with the date that
the Mortgage Loan is referred to an attorney for collection.

Freddie Mac: The Federal Home Loan Mortgage Corporation.

GLCA: Defined in the preamble of this Agreement.

GLF: Defined in the preamble of this Agreement.

GNMA: The Government National Mortgage Association.

GNMA Loan: An FHA Loan or a VA Loan identified on the Mortgage Loan Schedule as
having a GNMA guaranty.

Indemnification Agreement: That certain Indemnification Agreement dated of even
date herewith, between Wendover and Textron.

Instruments and Documents: Instruments and Documents shall have the meaning
assigned to such term in the Bailee Agreement and Waiver.

Losses: Any and all claims, actions, damages, liabilities, costs and expenses,
including reasonable attorneys' fees and expenses.

Exhibit A of Sub-Servicing Agreement                                      2 of 4

<PAGE>

Material Assumptions: The information set forth on Exhibit D hereof, that
Wendover has received from Client or has otherwise depended upon in developing
the fees set forth on Exhibit C hereof.

Monthly Sub-Servicing Fee: The recurring monthly charge payable to Wendover as
set forth in Paragraph 1(a) of Exhibit C of this Agreement.

Mortgage: The mortgage, mortgage deed, deed of trust or other instrument
creating a lien on or ownership interest in an estate in fee simple in
residential real property securing a Mortgage Note, including any riders,
assumption agreements or modifications.

Mortgage Loan: An individual mortgage loan that is sub-serviced by Wendover
under this Agreement, as identified on the Mortgage Loan Schedule.

Mortgage Loan Schedule: The Mortgage Loan-related information set forth on
Exhibit E of this Agreement, which will include but not be limited to the number
and type of Mortgage Loans (e.g. fixed rate, adjustable rate, etc.), and such
other information as Wendover may reasonably require in order to formulate the
fees set forth on Exhibit C hereof.

Mortgage Note: The note or other evidence of the indebtedness of a Mortgagor.

Mortgage Record: Any Mortgage Loan-related servicing data, electronic or
otherwise, received by Wendover or considered by Wendover to be necessary or
appropriate in order for Wendover to perform the Services hereunder.

Mortgaged Property: The real property securing a Mortgage Note pursuant to the
related Mortgage.

Mortgagor: The obligor on a Mortgage Note.

P&I Custodial Account: The account created and maintained pursuant to Section
2.4 hereof.

Proceeds: Proceeds shall have the meaning assigned to such term in the Bailee
Agreement and Waiver.

Services. The Mortgage Loan-related functions specifically described in (i) the
Roles and Responsibilities Matrix and other Applicable Requirements, and (ii)
the terms and conditions of this Agreement.

Servicing File: With respect to any Mortgage Loan, all "hard" copies of
documents or records that Wendover considers necessary or appropriate in order
to fulfill its obligations under this Agreement, including the (i) Mortgage Note
and prepayment penalty addendum (if applicable); (ii) deed of trust; legal
description of Mortgaged Property; (iii) adjustable rate mortgage rider (if
applicable); (iv) buydown schedule (if applicable); (v) HUD settlement statement
(HUD 1); (vi) hazard insurance policy; (vii) flood insurance certificate; (viii)
tax information sheet; (ix)

Exhibit A of Sub-Servicing Agreement                                      3 of 4

<PAGE>

Mortgage Insurance certificate (if applicable); (x) initial escrow statement;
(xi) Mortgage Loan application; and (xii) appraisal of the Mortgaged Property.

Shifting Control Notice: Shifting Control Notice shall have the meaning assigned
to such term in the Blocked Account Control Agreement.

System: Computer hardware, software and firmware that is utilized or accessed by
Wendover in performing the Services.

Textron: Textron Financial Corporation.

Transfer Date: As to each Mortgage Loan, the date such Mortgage Loan is placed
on Wendover's System, such date to be determined solely by reference to
Wendover's records.

VA: The United States Department of Veterans Affairs.

VA Loan: A Mortgage Loan that is identified on the Mortgage Loan Schedule as
guaranteed by the VA.

Warehouse Lender: Any of Client's warehouse lenders, including Textron.

Wendover: Wendover Financial Services Corporation, as defined in the first
paragraph of this Agreement.

Exhibit A of Sub-Servicing Agreement                                      4 of 4

<PAGE>

                                    EXHIBIT B
                          (to Sub-Servicing Agreement)

                        ROLES AND RESPONSIBILITIES MATRIX

                           (To Be Provided Separately)

Exhibit B of Sub-Servicing Agreement                                      1 of 1

<PAGE>

                                    EXHIBIT C
                          (to Sub-Servicing Agreement)

                                      FEES

As consideration for Wendover's performance hereunder, Client agrees to pay
Wendover the following fees in accordance with the terms and conditions set
forth in this Agreement, which fees are a combination of recurring monthly
charges, one-time charges, and miscellaneous charges as set forth below.

1.      Recurring Monthly Charges.

        (a)     Monthly Sub-Servicing Fee. Beginning with the calendar month of
        the Effective Date, and for each calendar month during the term of this
        Agreement, Client agrees to pay Wendover, in addition to all other fees
        described herein, a monthly sub-servicing fee (the "Monthly
        Sub-Servicing Fee"), which will be the ****

        ****

        ****

                ****

        ****

        (b)     Delinquency Fee. In addition to the Monthly Sub-Servicing Fee
        and applicable Loss Mitigation Fee described in subparagraph (e) below,
        Client agrees to pay Wendover additional monthly fees for each Mortgage
        Loan for which any payment by Mortgagor is at least ****, as follows:

                ****

                ****

Exhibit C of Sub-Servicing Agreement                                      1 of 5

<PAGE>

                ****

        (c)     Bankruptcy-related Fee. If bankruptcy services are reflected on
        the Roles and Responsibilities Matrix as a Wendover responsibility,
        Client agrees to pay Wendover, in addition to the Monthly Sub-Servicing
        Fee, an **** for which the Mortgagor is in Bankruptcy during any part
        of the calendar month. A Mortgage Loan will be considered in Bankruptcy
        upon receipt by Wendover of written or verbal notice from any attorney,
        trustee-in-bankruptcy, or other reasonably reliable source.

        (d)     Foreclosure-related Fee. If foreclosure services are reflected
        on the Roles and Responsibilities Matrix as a Wendover responsibility,
        Client agrees to pay Wendover, in addition to the Monthly Sub-Servicing
        Fee and applicable Loss Mitigation Fee described in subparagraph (e)
        below, **** Mortgage Loan that is in Foreclosure during any part of the
        calendar month.

        (e)     Loss Mitigation Fee. If loss mitigation services are reflected
        on the Roles and Responsibilities Matrix as a Wendover responsibility,
        Client agrees to pay Wendover, in addition to the Monthly Sub-Servicing
        Fee, and in addition to any applicable Delinquency or Foreclosure Fee,
        (i) **** for each Mortgage Loan in Loss Mitigation status for all or
        part of any calendar month, and (ii) the following fees applicable to
        completed Loss Mitigation cases:

                ****

        (f)     Real Estate Owned (REO)-related Fee. If REO services are
        reflected on, Exhibit B, the Roles and Responsibilities Matrix as a
        Wendover responsibility, Client agrees to pay Wendover, in addition to
        the Monthly Sub-Servicing Fee and applicable loss mitigation fee
        described in subparagraph (e) above, **** for each Mortgage Loan that is
        in REO during any part of the calendar month.

        In addition, Wendover will be paid a marketing fee of **** of the sales
        price of each REO property, if Client elects to have Wendover perform
        the marketing of the property. From this marketing fee, Wendover will be
        responsible for payment of fees to any outsource vendor selected by
        Wendover, as well as real estate commissions paid on the sale of the
        property. The minimum marketing fee for each REO property ****. Client
        will notify Wendover within **** of Wendover's notification of
        foreclosure sale of its intent to market the property.

Exhibit C of Sub-Servicing Agreement                                      2 of 5

<PAGE>

2.      One-Time Charges.

        ****

        (b)     Ongoing Set-Up Fee. For each Mortgage Loan that is added to
        Wendover's System after the initial transfer of Client's portfolio,
        Client agrees to pay Wendover a one-time Set-Up Fee, as follows: (i) for
        Mortgage Loans that are transferred to the Wendover System by electronic
        means, the Set-Up Fee ****; and (ii) for Mortgage Loans that are
        transferred to Wendover via "hard copy" files and manually loaded onto
        the Wendover System, the ****.

        (c)     Mortgage Insurance Claim-related Fee. Client agrees to pay
        Wendover **** for each claim/expense reimbursement filed by Wendover on
        Client's behalf.

        (d)     Mortgage Note Conversion Fee. Client agrees to pay Wendover (i)
        **** for each adjustable rate Mortgage Loan that is converted to a fixed
        rate Mortgage Loan under the terms of the Mortgage Note; and (ii) ****
        non-escrow Mortgage Loan that is converted to an escrowed Mortgage Loan.

        (e)     Client Sale Fee. Client agrees to pay Wendover a fee of ****
        upon the sale by the Client of any part of its interest in any Mortgage
        Loan subject to this Agreement upon which sale this Agreement remains in
        force and effect and is not terminated with respect to such Mortgage
        Loan.

        (f)     Lien Release Fee. Client agrees to pay for all costs or fees
        associated with preparing and processing the lien release and any
        related documents (including any assignments of Mortgage necessary to
        complete the lien release). Costs and fees associated with preparing and
        processing the lien release and related documents shall include, without
        limitation, the cost of title searches, custodial fees, and recording
        fees; provided, however, that no such costs and fees shall be incurred
        without prior written notice to the Client. Upon completion of lien
        release of a Mortgage Loan, or extinguishing of the Mortgage Loan
        through Foreclosure, Client agrees that Servicing Files will be shipped
        at Client's expense.

        (g)     Deconversion Fee. Client agrees to pay Wendover, in addition to
        all other amounts due hereunder, **** as a deconversion fee for each
        Mortgage Loan deconverted from Wendover's system for any reason other
        than payment in full.

Exhibit C of Sub-Servicing Agreement                                      3 of 5

<PAGE>

        (h)     Exit Fee. If this Agreement is terminated pursuant to Section
        7.4 hereof, then Client agrees to pay to Wendover **** at the time of
        the notice of termination.

        (i)     Dial-In Alltel Access. If Client elects to purchase Dial-in
        Access to the Wendover servicing system, Client agrees to pay Wendover,
        in addition to the Monthly Sub-Servicing Fee, the following fees:

                     ****

        (j)     Fees for Other Services. In addition to all other fees set forth
        herein, Client will pay Wendover for the fees set forth in Exhibit C.1
        for (i) default property inspections; (ii) broker price options (BPOs);
        (iii) appraisals; (iv) tax service; (v) flood determinations; (vi) title
        searches; (vii) loss draft property inspections; and (viii) attorneys'
        and trustees' services related to bankruptcy and foreclosure actions for
        Mortgage Loans; provided, however, that the fees charged by and payable
        to Wendover for GNMA-guaranteed Mortgage Loans, and (B) HUD-insured and
        VA-guaranteed Mortgage Loans shall not exceed the applicable amounts
        allowable under the applicable Agency Guidelines. All fees set forth in
        Exhibit C.1 are subject to change upon thirty (30) days' prior written
        notice.

4.      Annual Adjustment to Fee. Unless otherwise expressly provided in this
        Agreement with respect to the charges to be paid hereunder, the parties
        acknowledge and agree to use the Employment Cost Index for Total
        Compensation (not seasonally adjusted), Private Industry Workers,
        White-collar occupations excluding sales, June 1989 = 100 (the "ECI"),
        as the basis for annual adjustments to all charges to be paid by Client
        to Wendover (the "Adjustable Charges"). The ECI is published by the
        Bureau of Labor Statistics (the "BLS") of the U.S. Department of Labor.
        For purposes of this Exhibit C, the most recently published ECI as of
        any anniversary of the Effective Date is the "ECI Current Index", and
        the "ECI Base Index" is the ECI Current Index from the prior anniversary
        of the Effective Date (or, for the first anniversary, the ECI most
        recently published as of the Effective Date). If, on any anniversary of
        the Effective Date, the ECI Current Index is higher than the ECI Base
        Index, then, effective as of such anniversary, an adjustment to the
        Adjustable Charges will be made by increasing the Adjustable Charges by
        the percentage that the ECI Current Index increased from the ECI Base
        Index. In calculating the percentage increase, the parties agree to
        round to one decimal place. If, on any anniversary of the Effective
        Date, the ECI Current Index is lower than the ECI Base Index, no
        adjustment to the Adjustable Charges will be made. If the period from
        the ECI Base Index to the ECI Current Index is other than 12 months, an
        adjustment to a full year will be pro-rated accordingly. If an
        adjustment is not made on an anniversary date for any reason, then the
        ECI Base Index for the following anniversary date will be the same as
        the

Exhibit C of Sub-Servicing Agreement                                      4 of 5

<PAGE>

        ECI Base Index for the anniversary date on which no adjustment was made.
        The parties acknowledge and agree that Wendover will adjust the
        Adjustable Charges and will advise Client of such adjustment in writing
        so that the new charges will amend this Agreement and become effective
        on the applicable anniversary of the Effective Date.

Exhibit C of Sub-Servicing Agreement                                      5 of 5

<PAGE>

                                   EXHIBIT C.1
                          (to Sub-Servicing Agreement)

                                      ****

****

****

****

****

****

****

****

****

****

Exhibit C.1 of Sub-Servicing Agreement                                    1 of 4

<PAGE>

****

****

****

****

****

****

****

****

****

****

Exhibit C.1 of Sub-Servicing Agreement                                    2 of 4

<PAGE>

****

****

****
****
****
****
****
****
****
****
****
****

Exhibit C.1 of Sub-Servicing Agreement                                    3 of 4

<PAGE>

****
****
****

Exhibit C.1 of Sub-Servicing Agreement                                    4 of 4

<PAGE>

                                    EXHIBIT D
                          (to Sub-Servicing Agreement)

                                      ****

****
****
****
****
****
****
****
****
****
****
****

Exhibit D of Sub-Servicing Agreement                                      1 of 1

<PAGE>

                                    EXHIBIT E
                          (to Sub-Servicing Agreement)

                             MORTGAGE LOAN SCHEDULE

                           (To Be Provided Separately)

Exhibit E of Sub-Servicing Agreement                                      1 of 1

<PAGE>

                                    EXHIBIT F
                          (to Sub-Servicing Agreement)

                              INTENTIONALLY OMITTED

Exhibit F of Sub-Servicing Agreement                                      1 of 1

<PAGE>

                                    EXHIBIT G
                          (to Sub-Servicing Agreement)

                          DISPUTE RESOLUTION PROCEDURES

G.1     Mediation. Any Dispute that the parties are unable to resolve through
        informal discussions or negotiations pursuant to Article VI of this
        Agreement will be submitted to non-binding mediation, which will be held
        in Plano, Texas if initiated by Client and in a location of Client's
        election if initiated by Wendover. The parties will mutually determine
        who the mediator will be from a list of mediators obtained from the
        American Arbitration Association office located in the city in which the
        proceeding will take place, determined as set forth above (the "AAA").
        If the parties are unable to agree on the mediator, the mediator will be
        selected by the AAA.

G.2     Arbitration. Any Dispute that the parties are unable to resolve through
        mediation pursuant to Section G.1 of this Exhibit will be submitted to
        arbitration in accordance with the following procedures:

        (a)     Demand for Arbitration; Location. Either party may demand
                arbitration by giving the other party written notice to such
                effect, which notice will describe, in reasonable detail, the
                facts and legal grounds forming the basis for the filing party's
                request for relief and will include a statement of the total
                amount of damages claimed, if any, and any other remedy sought
                by that party. The arbitration will be held before one neutral
                arbitrator in Plano, Texas if the proceedings are initiated by
                Client and in a location of Client's election if the proceedings
                are initiated by Wendover.

        (b)     Identification of Arbitrator. **** after the other party's
                receipt of such demand, the parties will mutually determine who
                the arbitrator will be. If the parties are unable to agree on
                the arbitrator within that time period, the arbitrator will be
                selected by the AAA. In any event, the arbitrator will have a
                background in, and knowledge of, the information technology
                services industry and will be an appropriate person based on the
                nature of the Dispute. If a person with such industry experience
                is not available, the arbitrator will be chosen from the large
                and complex case panel or, if an appropriate person is not
                available from such panel, the retired federal judges pool.

        (c)     Conduct of Arbitration. The arbitration will be governed by the
                Commercial Arbitration Rules of the AAA, except as expressly
                provided in this Section G.2. However, the arbitration will be
                administered by any organization mutually agreed to in writing
                by the parties. If the parties are unable to agree on the
                organization to administer the arbitration, it will be
                administered by the AAA under its procedures for large and
                complex cases. Pending the arbitrator's determination of the
                merits of

Exhibit G of Sub-Servicing Agreement                                      1 of 2

<PAGE>

                the Dispute, either party may apply to any court of competent
                jurisdiction to seek injunctive or other extraordinary relief.

        (d)     Scope of Discovery. Discovery will be limited to the request for
                and production of documents, depositions and interrogatories.
                Interrogatories will be allowed only as follows: a party may
                request the other party to identify by name, last known address
                and telephone number (i) all persons having knowledge of facts
                relevant to the Dispute and a brief description of that person's
                knowledge, (ii) any experts who may be called as an expert
                witness, the subject matter about which the expert is expected
                to testify, the mental impressions and opinions held by the
                expert and the facts known by the expert (regardless of when the
                factual information was acquired) which relate to or form the
                basis for the mental impressions and opinions held by the expert
                and (iii) any experts who have been used for consultation, but
                who are not expected to be called as an expert witness, if such
                consulting expert's opinions or impressions have been reviewed
                by an expert witness. All discovery will be guided by the
                Federal Rules of Civil Procedure. All issues concerning
                discovery upon which the parties cannot agree will be submitted
                to the arbitrator for determination.

        (e)     Authority of Arbitrator. In rendering an award, the arbitrator
                will determine the rights and obligations of the parties
                according to the substantive and procedural laws of the State of
                North Carolina. The arbitrator will not have authority to award
                damages in excess of the amount or other than the types allowed
                by Article VI and may not, in any event, make any ruling,
                finding or award that does not conform to the terms and
                conditions of this Agreement.

        (f)     Joinder of parties. Each of Wendover and Client agree that it
                will use commercially reasonable efforts to join (and will allow
                the other party to join) any third party that the parties have
                agreed is indispensable to the arbitration. If any such third
                party does not agree to be joined, the arbitration will proceed
                nonetheless.

        (g)     Award. The decision of, and award rendered by, the arbitrator
                will be final and binding on the parties. Upon the request of a
                party, the arbitrator's award will include written findings of
                fact and conclusions of law. Judgment on the award may be
                entered in and enforced by any court of competent jurisdiction.
                Each party will bear its own costs and expenses (including
                filing fees) with respect to the arbitration, including one-half
                of the fees and expenses of the arbitrator.

Exhibit G of Sub-Servicing Agreement                                      2 of 2

<PAGE>

                                    EXHIBIT H
                          (to Sub-Servicing Agreement)

                             DATA ACCESS PROCEDURES

        The databases, computer programs, screen formats, screen designs, report
formats, interactive design techniques, and other information furnished to
Client by Wendover as part of the Services constitute copyrighted, trade secret
or proprietary information of substantial value to Wendover. Such databases,
programs and other information are collectively referred to below as "Wendover
Information". Client agrees that it will treat all Wendover Information as
proprietary to Wendover and that it will not divulge any Wendover Information to
any person or organization except as is expressly permitted hereunder. Wendover
Information is furnished "as is" without warranty. Without limiting the
foregoing Client agrees for itself and its employees and agents to:

        (i)     Access data and functions solely for Client's own internal use
                and benefit;

        (ii)    Discontinue use of the data access security system at any time
                upon notice from Wendover;

        (iii)   Upon Wendover's request, cause Client's internal auditors to
                certify in writing to Wendover that data access is restricted to
                Client's authorized employees;

        (iv)    use such programs and databases solely (1) on Wendover's System
                or designated Client devices, (2) from devices at Client
                locations approved in writing by Wendover, and (3) in accordance
                with Wendover's applicable user documentation;

        (v)     refrain from copying or duplicating in any way (other than in
                the normal course of performing processing on Wendover's
                computers) any part of any Wendover Information, and to return
                any Wendover Information upon termination of this Agreement;

        (vi)    refrain from obtaining unauthorized access to any programs, data
                or other information to which Client is not entitled, and if
                such access is accidentally obtained, to respect and safeguard
                the same as Wendover Information;

        (vii)   refrain from causing or allowing information transmitted from
                Wendover's computer to Client's terminal to be transmitted to
                another computer, terminal or other device for other than
                Client's own use, except upon prior written approval of
                Wendover;

        (viii)  honor all reasonable written requests made by Wendover to
                protect at Wendover's expense the rights of Wendover in Wendover
                Information at common law, under the Federal copyright statute
                and under other Federal and state statutes;

Exhibit H of Sub-Servicing Agreement                                      1 of 2

<PAGE>

        (ix)    request, issue and maintain a unique user ID for each Client
                employee, which request must be made in writing to Wendover's
                designated data security manager;

        (x)     request immediate deactivation of a user ID or deletion of
                access when no longer needed or when Client believes security
                has been violated;

        (xi)    limit knowledge of user IDs and passwords to only authorized
                Client employees;

        (xii)   not (1) disclose passwords directly or indirectly to anyone,
                including other employees of Client, or (2) store user IDs or
                passwords in any computer file, as part of an "automatic logon"
                procedure, or (3) recycle or reuse passwords; and

        (xiii)  ****

Exhibit H of Sub-Servicing Agreement                                      2 of 2<PAGE>

                                                                     EXHIBIT 4.3

                                REDENVELOPE, INC.

        OMNIBUS AMENDMENT TO INVESTORS' RIGHTS AGREEMENT, RIGHT OF FIRST
               REFUSAL AND CO-SALE AGREEMENT AND VOTING AGREEMENT

         This Omnibus Amendment to Investors' Rights Agreement, Right of First
Refusal and Co-Sale Agreement and Voting Agreement (this "Amendment") is made as
of is made as of May 29, 2003 by and among RedEnvelope, Inc., a Delaware
corporation (the "Company"), and the undersigned parties hereto. This Amendment
amends the Company's Amended and Restated Investors' Rights Agreement (the
"Rights Agreement"), Amended and Restated Right of First Refusal and Co-Sale
Agreement (the "Co-Sale Agreement") and Amended and Restated Voting Agreement
(the "Voting Agreement", and together with the Rights Agreement and the Co-Sale
Agreement, the "Agreements") each dated as of April 17, 2002.

                                    RECITALS

         WHEREAS, the Company and the undersigned parties hereto wish to amend
the Agreements as set forth below;

         WHEREAS, under Section 3.7 of the Rights Agreement, the Company may
amend the Agreement as contemplated hereunder only with the written consent of
the Company and the holders of a majority of the shares of Common Stock issuable
or issued upon conversion of the Series B, Series C, Series D, Series E and
Series F Preferred Stock;

         WHEREAS, under Section 3.5 of the Co-Sale Agreement, the Company may
amend the Agreement as contemplated hereunder only with the written consent of
the Company, the Founders (as defined in the Co-Sale Agreement) holding a
majority of the Company Common Stock held, or issuable upon conversion of
Preferred Stock held, by all Founders and the holders of a majority of the
Series B, Series C, Series D, Series E and Series F Preferred Stock voting
together (including any Common Stock then held by the such holders issued upon
conversion of such Series B, Series C, Series D, Series E and Series F Preferred
Stock);

         WHEREAS, under Section 2.6 of the Voting Agreement, the Company may
amend the Agreement as contemplated hereunder only with the written consent of
the Company and the holders of a majority of the Preferred Stock of the Company;
and

         WHEREAS, the foregoing requirements will be satisfied by execution of
this Amendment by the undersigned parties.

         NOW, THEREFORE, IT IS AGREED THAT:

1.       Amendments to Rights Agreement.

         1.1      Section 1.1(b) of the Rights Agreement is hereby amended by
deleting such sub-section in its entirety and replacing it with the following:

         "(b)     The term "Registrable Securities" means (i) the shares of
         Common Stock issuable or issued upon conversion of the Company's Series
         B Preferred Stock, (ii) the shares of Common Stock issuable or issued
         upon conversion of the Company's Series C Preferred Stock, (iii) the
         shares of Common Stock issuable or issued upon conversion of the
         Company's Series D Preferred Stock, (iv) the shares of Common Stock
         issuable or issued upon conversion of the Company's

<PAGE>

         Series E Preferred Stock, (v) the shares of Common Stock issuable or
         issued upon conversion of the Company's Series F Preferred Stock
         (together with the Series B, the Series C, the Series D and the Series
         E Preferred Stock, the "Stock"), (vi) the shares of Common Stock
         issuable or issued upon conversion of the Company's Series A Preferred
         Stock (the "Founders' Stock"); provided, however, that for the purposes
         of Sections 1.2 and 1.12 hereof, the Founders' Stock shall not be
         deemed Registrable Securities and the Founders shall not be deemed
         Holders, (vii) any other shares of Common Stock of the Company issued
         as (or issuable upon the conversion or exercise of any warrant, right
         or other security which is issued as) a dividend or other distribution
         with respect to, or in exchange for or in replacement of, the Stock or
         the Founders' Stock, (viii) 209,104 shares of Common Stock issued or
         issuable upon exercise of outstanding warrants held by certain of the
         Prior Investors, issued in connection with the Series B Preferred
         Stock, (ix) 9,282 shares of Common Stock issued or issuable upon
         exercise of a warrant held by Comdisco, Inc., (x) 200,000 shares of
         Common Stock issued or issuable upon exercise of a warrant held by
         Lighthouse Capital Partners, (xi) the shares of Common Stock issuable
         or issued upon conversion of the Series F Preferred Stock issuable or
         issued upon exercise of a warrant dated as of April 17, 2002 held by
         Camelot Ventures LLC, (xii) the shares of Common Stock issuable or
         issued upon conversion of the Series F Preferred Stock issuable or
         issued upon exercise of a warrant dated as of September 6, 2002 held by
         Lighthouse Capital Partners, provided, however, that the foregoing
         definition shall exclude in all cases any Registrable Securities sold
         by a person in a transaction in which such person's rights under this
         Agreement are not assigned. Notwithstanding the foregoing, shares of
         Common Stock or other securities shall only be treated as Registrable
         Securities if and so long as (A) they have not been sold to or through
         a broker or dealer or underwriter in a public distribution or a public
         securities transaction, or (B) they have not been sold in a transaction
         exempt from the registration and prospectus delivery requirements of
         the Act under Section 4(1) thereof so that all transfer restrictions,
         and restrictive legends with respect thereto, if any, are removed upon
         the consummation of such sale, or (C) the registration rights with
         respect to such securities have not terminated pursuant to Section
         1.15;"

         1.2      Section 1.1(e) of the Rights Agreement is hereby amended by
deleting such sub-section in its entirety and replacing it with the following:

         "(e)     The term "Qualified Public Offering" shall mean the Company's
         sale of its Common Stock in a firm commitment underwritten public
         offering pursuant to a registration statement under the Securities Act
         of 1933, as amended, the public offering price of which is not less
         than (x) $0.80 per share, if such sale shall occur on or prior to
         October 15, 2003, or (y) $1.5952 per share, if such sale shall occur
         after October 15, 2003 (in either case, such minimum price adjusted to
         reflect subsequent stock dividends, stock splits, combinations,
         recapitalizations or the like) and which results in either case in
         aggregate cash proceeds to the Company of at least $20,000,000 (gross
         proceeds before deducting of underwriting discounts and commissions)."

         1.3      Section 2.4(d) of the Rights Agreement is hereby amended by
deleting such sub-section in its entirety and replacing it with the following:

         "(d)     The right of first offer in this Section 2.4 shall not be
         applicable (i) to the issuance or sale of shares of Common Stock, or
         options therefor, to employees, consultants and directors of the
         Company, pursuant to plans or agreements approved by the Board of
         Directors for the primary purpose of soliciting or retaining their
         services, (ii) to or after consummation of the sale of securities
         pursuant to a Qualified Public Offering, (iii) to the issuance of
         securities pursuant to the conversion or exercise of convertible or
         exercisable securities, (iv) capital stock or warrants or options to
         purchase capital stock issued as consideration for bona fide
         acquisitions, mergers or similar transactions, the terms of which are
         approved by the Board of Directors of the Company, (v) to the issuance
         of securities to financial institutions or lessors in connection with
         commercial

                                      -2-

<PAGE>

         credit arrangements, equipment financings, commercial property lease
         transactions or similar transactions approved by the Board of
         Directors, (vi) upon and subsequent to the closing of a Liquidation
         Transaction, (vii) to the issuance of additional shares of Series F
         Preferred Stock pursuant to Section 1.2(c) of the Purchase Agreement or
         (viii) to the issuance of securities pursuant to a Board-approved stock
         split or stock dividend."

2.        Amendment to Co-Sale Agreement.  Section 1.4 of the Co-Sale Agreement
is hereby amended by deleting such section in its entirety and replacing it with
the following:

         "Section 1.4 Termination of Right of First Refusal and Co-Sale Right.
         The Investors' Right of First Refusal and Co-Sale Right shall terminate
         and be of no further force and effect immediately upon:

         (a)      the effectiveness of a Qualified Public Offering (as defined
         in the Investors' Rights Agreement dated as of April 17, 2002 by and
         between the Company, the Investors and the Founders, as such agreement
         may be amended, modified or supplemented from time to time, the
         "Investors' Rights Agreement"); or

         (b)      the closing of a Liquidation Transaction (as defined in the
         Investors' Rights Agreement) of the Company."

3.       Amendment to Voting Agreement. Section 1.4 of the Voting Agreement is
hereby amended by deleting such section in its entirety and replacing it with
the following:

         "1.4     Termination of Voting Agreement. The provisions of this
         Agreement shall terminate and be of no further force and effect upon
         the effective date of a Qualified Public Offering (as defined in the
         Investors' Right Agreement dated as of April 17, 2002 herewith by and
         between the Company, the Investors and the Founders, as such agreement
         may be amended, modified or supplemented from time to time, the
         "Investors' Rights Agreement") or upon a Liquidation Transaction (as
         defined in the Investors' Rights Agreement) of the Company."

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

5.       Effect of Amendment.  Except as amended as set forth above, the
Agreements shall continue in full force and effect.

                            [SIGNATURE PAGES FOLLOW]

                                      -3-

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Omnibus Amendment to
Investors' Rights Agreement, Right of First Refusal and Co-Sale Agreement and
Voting Agreement as of the date first written above.

                                       COMPANY:

                                       REDENVELOPE, INC.

                                       By: /s/ Alison L. May
                                          --------------------------------------

                                       Name: Alison L. May
                                            ------------------------------------

                                       Title: President & CEO
                                             -----------------------------------
<PAGE>

                                        PURCHASER:

                                        MOUSSENVELOPE, L.L.C.

                                        By: Moussescapade, L.P., Managing Member

                                        By: Moussescribe, its General Partner

                                        By: /s/ Charles Heilbronn
                                            ------------------------------------
                                            Charles Heilbronn
                                            President

                                        Address: c/o Mousse Partners Limited
                                                 9 West 57th Street
                                                 New York, New York  10019

<PAGE>

                                        WESTON PRESIDIO CAPITAL III, L.P.

                                        By: /s/ James B. McElwee

                                        Name: James B. McElwee

                                        Title: General Partner

                                        Address:

                                        WPC ENTREPRENEUR FUND, L.P.

                                        By: /s/ James B. McElwee

                                        Name: James B. McElwee

                                        Title: General Partner

                                        Address:

<PAGE>

                                        SEQUOIA CAPITAL IX
                                        SEQUOIA CAPITAL ENTREPRENEURS FUND
                                        SEQUOIA CAPITAL IX PRINCIPALS FUND

                                        By: SC IX Management, LLC
                                            A Delaware Limited Liability Company
                                            General Partner of Each

                                        By: /s/ [Illegible]
                                            Managing Member

                                        Address:

                                        SEQUOIA CAPITAL FRANCHISE FUND
                                        SEQUOIA CAPITAL FRANCHISE PARTNERS

                                        By: SCFF Management, LLC
                                            A Delaware Limited Liability
                                            Company General Partner of Each

                                        By: /s/ [Illegible]
                                            Managing Member

                                        Address:

<PAGE>

                                        SIPPL MACDONALD VENTURES II, L.P.

                                        By: /s/ Jackie Macdonald
                                            ------------------------------------
                                        Name: Jackie Macdonald
                                              ----------------------------------

                                        Title: General Partner
                                               ---------------------------------

                                        Address:

                                        SIPPL MACDONALD VENTURES III, L.P.

                                        By: /s/ Jackie Macdonald
                                            ------------------------------------

                                        Name: Jackie Macdonald
                                              ----------------------------------

                                        Title: General Partner
                                               ---------------------------------

                                        Address:

<PAGE>

                                        DIRECT EQUITY PARTNERS, L.P.

                                        By: /s/ [Illegible]
                                            ------------------------------------

                                        Name: __________________________________

                                        Title: _________________________________

                                        Address: Attn: Claire Gruppo
                                                 Direct Equity Partners
                                                 60 East 42nd Street
                                                 Suite 3810
                                                 New York, NY 10165

<PAGE>

                                        /s/ Peter Baltaxe
                                        ----------------------------------------
                                        PETER BALTAXE

                                        Address:

<PAGE>

                                        CAPITAL RESEARCH & MANAGEMENT COMPANY,
                                        ON BEHALF OF SMALL CAP WORLD FUND, INC.

                                        By: /s/ Michael J. Downer

                                        Name: Michael J. Downer

                                        Title: Vice President and Secretary

                                        Address:

<PAGE>

                                        /s/ PATRICK CONNOLLY
                                        PATRICK CONNOLLY

                                        Address:

<PAGE>

                                        GALLOWAY & CHAPLIN CAPITAL, G.P.

                                        By: /s/ R. Ian Chaplin

                                        Name: R. Ian Chaplin

                                        Title: Partner

                                        Address:

<PAGE>
                                        /s/ Michael P. Lazarus
                                        --------------------------
                                        MICHAEL P. LAZARUS

                                        Address:

<PAGE>

                                        MICHAEL L. MEYER LIVING TRUST

                                        By: /s/ Michael L. Meyer
                                           -------------------------------------

                                        Name: Michael L. Meyer
                                             -----------------------------------

                                        Title: Trustee
                                             -----------------------------------

                                        Address:

<PAGE>

                                        /s/ William D. Michelini
                                        ------------------------
                                        WILLIAM D. MICHELINI

                                        Address:

<PAGE>

                                        /S/ HENRY L. B. WILDER
                                        HENRY L. B. WILDER

                                        Address:

<PAGE>

                                        WILLIAM OBERNDORF, TRUSTEE OF THE WILDER
                                        FAMILY FUND DATED APRIL 5, 1999

                                        By: /S/ William Oberndorf

                                        Name: William Oberndorf

                                        Title: Wilder Family Fund Trustee

                                        Address:

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