Document:

GMAC RFC

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                            RMBS NEW ISSUE TERM SHEET

                     $385,000,000 CERTIFICATES (APPROXIMATE)

                   HOME EQUITY LOAN PASS-THROUGH CERTIFICATES,
                                 SERIES 2002-HS2

                          RFMSII SERIES 2002-HS2 TRUST
                                     Issuer

                RESIDENTIAL FUNDING MORTGAGE SECURITIES II, INC.
                                    Depositor

                         RESIDENTIAL FUNDING CORPORATION
                                 Master Servicer

                                  JUNE 12, 2002

                           CREDIT SUISSE/FIRST BOSTON
                                [GRAPHIC OMITTED]

<PAGE>

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        RESIDENTIAL FUNDING MORTGAGE SECURITIES II, INC.
        HOME EQUITY LOAN PASS-THROUGH CERTIFICATES, SERIES 2002-HS2
        $385,000,000 (APPROXIMATE)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

                                 RFMSII SERIES 2002-HS2 TRUST

------------------------------------------------------------------------------------------------------
                           STRUCTURE OVERVIEW (a) (b)
                                    TO CALL:
------------------------------------------------------------------------------------------------------
                                                                         ----------- -----------------
              EXPECTED                                        EXPECTED   EXPECTED        EXPECTED

                                                                         SCHEDULED
----------                                          EXPECTED  PRINCIPAL    FINAL
                              INTEREST   PRINCIPAL  WAL        WINDOW    DISTRIBUTION     RATINGS
  CLASS        SIZE(A)          TYPE       TYPE      (YRS)      (MOS)       DATE      (MOODY / S&P)
            --------------                                               ----------- -----------------
----------- -------------- ------------- ---------- --------- ---------- ----------- -----------------
<S>         <C>            <C>                        <C>      <C> <C>    <C>  <C>
 A-1(e)     $150,000,000   1M LIBOR + [ ]   SEQ       0.91     1 - 20     2/25/16        Aaa/AAA
                           ------------- ---------- --------- ---------- ----------- -----------------
----------- -------------- ------------- ---------- --------- ---------- ----------- -----------------
 A-2(e)      49,000,000        Fixed        SEQ       2.01     20 - 28    3/25/17        Aaa/AAA
                           ------------- ---------- --------- ---------- ----------- -----------------
----------- -------------- ------------- ---------- --------- ---------- ----------- -----------------
 A-3(e)      59,000,000        Fixed        SEQ       3.00     28 - 49    3/25/17        Aaa/AAA
                           ------------- ---------- --------- ---------- ----------- -----------------
----------- -------------- ------------- ---------- --------- ---------- ----------- -----------------
 A-4(e)      29,500,000        Fixed        SEQ       5.01     49 - 79    3/25/17        Aaa/AAA
----------- -------------- ------------- ---------- --------- ---------- ----------- -----------------
----------- -------------- ------------- ---------- --------- ---------- ----------- -----------------
A-5(d)       12,800,000        Fixed        SEQ       6.74     79 - 81    4/25/22        Aaa/AAA
   (e)
----------- -------------- ------------- ---------- --------- ---------- ----------- -----------------
----------- -------------- ------------- ---------- --------- ---------- ----------- -----------------
A-6(e)       38,500,000        Fixed        NAS       5.84     40 - 81    3/25/17        Aaa/AAA
   (g)
----------- -------------- ------------- ---------- --------- ---------- ----------- -----------------
----------- -------------- ------------- ---------- --------- ---------- ----------- -----------------
 A-IO(c)      Notional         Fixed     Notional      -          -       12/25/04       Aaa/AAA
----------- -------------- ------------- ---------- --------- ---------- ----------- -----------------
----------- -------------- ------------- ---------- --------- ---------- ----------- -----------------
M-1(d)       17,325,000        Fixed        MEZ       4.68     39 - 81    3/25/17         Aa2/AA
 (e) (f)
----------- -------------- ------------- ---------- --------- ---------- ----------- -----------------
----------- -------------- ------------- ---------- --------- ---------- ----------- -----------------
M-2(d)       14,437,000        Fixed        MEZ       4.64     37 - 81    3/25/17          A2/A
 (e) (f)
----------- -------------- ------------- ---------- --------- ---------- ----------- -----------------
----------- -------------- ------------- ---------- --------- ---------- ----------- -----------------
M-3(d)        7,700,000        Fixed        MEZ       4.62     37 - 81    3/25/17        Baa1/BBB
 (e) (f)
------------------------------------------------------------------------------------------------------
                              PRIVATE CERTIFICATES:
------------------------------------------------------------------------------------------------------
B(d) (e)      6,738,000        Fixed        SUB       4.02     37 - 78    3/25/17        Baa3/BB
   (f)

------------------------------------------------------------------------------------------------------
</TABLE>

STRUCTURE

(a)  The Expected  Size is subject to a permitted  variance in the  aggregate of
     plus or minus 5%.
(b)     The Certificates will be priced to the Optional Termination Date.
(c)     Notional Schedule and coupon described on page 3.
(d)    The pass-through rate on the Class A-5 Certificates, Class M Certificates
       and Class B Certificates will increase by [0.50%] per annum on the second
       distribution date after the Optional Termination Date.
(e)    The Certificates (other than the Class A-IO Certificates) will be subject
       to the applicable Net WAC Cap as described herein.
(f)    The Class M  Certificates  and Class B  Certificates  are not expected to
       receive principal payments prior to the Stepdown Date.
(g)     Lockout bond.

PRICING               SPEED 100% PPC (assumes that  prepayments  start at 4% CPR
                      in month one,  increase  to 28% CPR by month  twelve,  and
                      remain constant at 28% CPR thereafter).

<PAGE>

                          CLASS A-IO NOTIONAL SCHEDULE:

Class  A-IO  Certificates  will be a  Aaa/AAA  rated  interest-only  class.  The
notional  amount of Class  A-IO  Certificates  is equal to the lesser of (i) the
aggregate  principal  balance of the Mortgage  Loans as of the  beginning of the
Collection  Period  and (ii) the  following  schedule.  The coupon of Class A-IO
Certificates is equal to [7.00]%.

 MONTH   CLASS A-IO NOTIONAL AMOUNT    MONTH    CLASS A-IO NOTIONAL AMOUNT
 -----   ---------------------------   -----    --------------------------
   1            118,000,000              16            54,000,000
   2            117,000,000              17            50,000,000
   3            115,000,000              18            47,000,000
   4            111,000,000              19            44,000,000
   5            108,000,000              20            41,000,000
   6            103,000,000              21            38,000,000
   7            99,000,000               22            35,000,000
   8            94,000,000               23            33,000,000
   9            88,000,000               24            31,000,000
   10           83,000,000               25            28,000,000
   11           77,000,000               26            26,000,000
   12           72,000,000               27            25,000,000
   13           67,000,000               28            23,000,000
   14           62,000,000               29            21,000,000
   15           58,000,000               30            20,000,000
                                         31                 -
------- ---------------------------- --------- ------------------------

<PAGE>

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                                SUMMARY OF TERMS

TRANSACTION: RFMSII Home Equity Loan Pass-Through Certificates, Series 2002-HS2

LEAD MANAGER: Banc of America Securities LLC

CO-MANAGER: Credit Suisse First Boston

PUBLIC CERTIFICATES:  The Class A-1 through Class A-6 Certificates and the Class
     A-IO Certificates (together,  the "Class A Certificates") and the Class M-1
     through M-3 Certificates (the "Class M Certificates").

PRIVATE CERTIFICATES: Class B Certificates

CERTIFICATES The Public Certificates and the Private Certificates.

SELLER AND MASTER SERVICER: Residential Funding Corporation

The  primary  servicing  will be  provided  by  HomeComings  Financial  Network,
     SUBSERVICER:  Inc.,  a  wholly  owned  subsidiary  of  Residential  Funding
     Corporation.

TRUSTEE: JPMorgan Chase Bank

DEPOSITOR:  Residential  Funding  Mortgage  Securities II, Inc., an affiliate of
     Residential Funding Corporation.

CLOSING DATE  FORM OF  CERTIFICATES:  On or about  June  27,  2002.  The  Public
     Certificates will be available in book-entry form through DTC,  Clearstream
     and  Euroclear.  The  Class A  Certificates  (other  than  the  Class  A-IO
     Certificates)  and  Class  M-1  Certificates  will be  offered  in  minimum
     denominations  of $25,000 and integral  multiples of $1 in excess  thereof.
     The Class A-IO  Certificates will be offered with a minimum notional amount
     of $2,000,000.  The Class M-2 Certificates and Class M-3 Certificates  will
     be offered in minimum  denominations of $250,000 and integral  multiples of
     $1 in excess thereof.

TAX  STATUS: The Public  Certificates will be designated as regular interests in
     a REMIC and, as such,  will be treated as debt  instruments  of a REMIC for
     federal income tax purposes.

<PAGE>

                          SUMMARY OF TERMS (CONTINUED)

ERISAELIGIBILITY:  It is  expected  that the  Public  Certificates  may be ERISA
     eligible as of the Closing Date.  However,  investors  should  consult with
     their counsel with respect to the consequences under ERISA and the Internal
     Revenue  Code  of  an  ERISA  Plan's  acquisition  and  ownership  of  such
     Certificates.

SMMEAELIGIBILITY:  None of the  Certificates  will constitute  "mortgage-related
     securities" for purposes of the Secondary  Mortgage Market  Enhancement Act
     of 1984.

EXPENSE FEE  RATE:  The  weighted  average  expense  fee  rate  consists  of the
     servicing fee and the master  servicing fee. The weighted  average  monthly
     expense  fee  rate is  approximately  58 basis  points  per  annum  for the
     mortgage loans.

ADVANCES: There is no required advancing of delinquent  principal or interest on
     the mortgage loans by the Master Servicer, the Subservicer,  the Trustee or
     any other entity.

CUT-OFF DATE:               June 1, 2002

MORTGAGE LOANS: The mortgage pool will consist primarily of approximately 99.77%
     of  conventional,  closed-end,  fixed rate,  fully  amortizing  and balloon
     payment home equity mortgage loans secured by second liens on fee simple or
     leasehold  interests in  one-to-four  family  residential  properties  with
     combined  LTVs not in excess of 100% and the remainder are secured by first
     lien (the "Mortgage Loans"). The actual pool balance as of the closing date
     is expected to be approximately $385,000,000.

DISTRIBUTION DATES:  Distribution of principal and interest on the  certificates
     will  be made  on the  25th  day of  each  month,  or if such  day is not a
     business day, the first business day thereafter, beginning in July 2002.

INTEREST ACCRUAL PERIOD:  With respect to the Certificates (other than the Class
     A-1 Certificates),  and any distribution date, the calendar month preceding
     the month in which the  distribution  date  occurs.  The  interest  accrual
     period for the Class A-1  Certificates  shall be (a) as to the distribution
     date in July 2002, the period  commencing on the closing date and ending on
     the day preceding  the  distribution  date in July 2002,  and (b) as to any
     distribution  date after the  distribution  date in July  2002,  the period
     beginning on the distribution date in the month  immediately  preceding the
     month in which that distribution date occurs and ending on the day prior to
     that distribution date.

DAY  COUNT: For the Class A Certificates (other than the Class A-1 Certificates)
     and the  Class  M  Certificates  30/360.  For the  Class  A-1  Certificates
     actual/360.

PAYMENT  DELAY:  For  the  Class  A  Certificates  (other  than  the  Class  A-1
     Certificates)  and  the  Class  M  Certificates  24  days.  For  Class  A-1
     Certificates 0 days.

OPTIONAL  TERMINATION  DATE: At its option,  on any  distribution  date when the
     aggregate   outstanding   principal  balance  of  the  mortgage  loans,  as
     applicable, is less than 10% of the principal balance of the mortgage loans
     as of the  cut-off  date,  the  Master  Servicer  will  have the  option to
     purchase from the trust all of the remaining  mortgage loans, thus, causing
     an early retirement of the Certificates.

<PAGE>

                          SUMMARY OF TERMS (CONTINUED)

COUPON  STEP  UP:  On  the  second  distribution  date  following  the  Optional
     Termination  Date,  the  pass-through  rate on the Class A-5  Certificates,
     Class M Certificates  and the Class B  Certificates  will increase by 0.50%
     per annum.

NET  WAC CAP: The  pass-through  rate of each class of the  Certificates  (other
     than the Class A-1 Certificates and the Class A-IO  Certificates),  will be
     subject to a cap equal to (x) the weighted  average of the  mortgage  rates
     (net of the Expense Fee Rate) on the  mortgage  loans minus (y) the product
     of (i) the  pass-through  rate on the Class  A-IO  Certificates  and (ii) a
     fraction,  the numerator of which is the notional  amount of the Class A-IO
     Certificates  and the  denominator  of which is the balance of the mortgage
     loans.  This  rate  cap is  referred  to as the Net WAC Cap.  Any  interest
     shortfall due to the application of the Net WAC Cap will not be reimbursed.

CLASSA-1 NET WAC CAP: The pass-through  rate of the Class A-1 Certificates  will
     be subject  to a cap equal to the  product of (x) the Net WAC Cap and (y) a
     fraction,  the numerator of which is 30 and the denominator of which is the
     actual number of days in the related class interest accrual period.

TRIGGER EVENT:  A Trigger  Event is in effect with  respect to any  distribution
     date on or after the Stepdown Date if any of the following  conditions  are
     met:

                      (i) the fraction,  expressed as a percentage, equal to the
                          aggregate principal balance of the mortgage loans that
                          are 90 or more days delinquent in payment of principal
                          and interest,  including mortgage loans in foreclosure
                          and REO,  as  determined  for the  current and the two
                          immediately  preceding  distribution  dates,  over the
                          aggregate  principal  balance  of all of the  mortgage
                          loans  as  determined  for  the  current  and  the two
                          immediately  preceding   distribution  dates,  exceeds
                          [2.00]%;

                      (ii)if the  aggregate  amount of  Realized  Losses,  other
                          than excess losses,  exceeds the specified  percentage
                          in the related month per the table below:

                                                           Cumulative
                                                         Realized Loss
                                           Month           Percentage
                                           -----           ----------
                                          1 - 36             [1.30%]
                                          37 - 48            [1.80%]
                                          49 - 60            [2.10%]
                                          61 - 72            [2.60%]
                                          72 and             [3.00%]
                                        thereafter

EXCESS  INTEREST:  For  any  distribution  date,  the  excess  of the  available
     distribution  amount over the sum of (x) the interest  distribution  amount
     for the classes of Certificates and (y) the principal  distribution  amount
     on the classes of Certificates.  Excess Interest may be used to protect the
     Certificates  against  realized  losses by making an additional  payment of
     principal up to the amount of the realized losses.

<PAGE>

                          SUMMARY OF TERMS (CONTINUED)

AVAILABLE DISTRIBUTION AMOUNT: For any distribution date, an amount equal to the
     sum of the following  amounts,  net of amounts  reimbursable  to the master
     servicer and any subservicer:

                               (i) the aggregate  amount of monthly  payments on
                                   the  mortgage  loans   received   during  the
                                   related Collection Period, after deduction of
                                   the   master    servicing    fees   and   any
                                   subservicing  fees in respect of the mortgage
                                   loans for that distribution date; and

                               (ii)unscheduled  payments,   including  full  and
                                   partial mortgagor prepayments on the mortgage
                                   loans,  Insurance  Proceeds  and  Liquidation
                                   Proceeds   from  the  mortgage   loans,   and
                                   proceeds    from     repurchases    of    and
                                   substitutions for the mortgage loans received
                                   or  deemed   received   during  the   related
                                   Collection Period.

INTEREST  DISTRIBUTION  AMOUNT:  With  respect  to any  distribution  date,  the
     aggregate amount of accrued  interest on the Class A Certificates,  Class M
     Certificates and Class B Certificates for that distribution date, including
     accrued  interest  remaining  unpaid with  interest for prior  distribution
     dates, in each case minus interest shortfalls.

PRINCIPAL DISTRIBUTION  AMOUNT: On any distribution  date, the lesser of (a) the
     excess of (i) the  Available  Distribution  Amount  over (ii) the  Interest
     Distribution Amount and (b) the aggregate amount described below:

                    (i)  the principal portion of all scheduled monthly payments
                         on  the   mortgage   loans   received  in  the  related
                         Collection Period;

                    (ii) the principal portion of all proceeds of the repurchase
                         of mortgage  loans,  or, in the case of a substitution,
                         amounts   representing  a  principal   adjustment,   as
                         required by the pooling and servicing  agreement during
                         the related Collection Period;

                    (iii)the principal portion of all other collections received
                         on the  mortgage  loans  during the related  Collection
                         Period,  or deemed to be  received  during the  related
                         Collection  Period,   including,   without  limitation,
                         Insurance Proceeds,  Liquidation  Proceeds and full and
                         partial  Principal  Prepayments  made by the respective
                         mortgagors,  to  the  extent  not  distributed  on  the
                         preceding distribution date;

                    (iv) the  lesser  of  (a)  the  Excess   Interest  for  that
                         distribution  date and (b) the principal portion of any
                         Realized Losses, other than excess losses, incurred, or
                         deemed to have been incurred,  on any mortgage loans in
                         the related  Collection Period to the extent covered by
                         Excess Interest for that distribution date; and

                    (v)  the  lesser  of  (a)  the  Excess   Interest  for  that
                         distribution  date,  to the  extent  not  used to cover
                         losses  pursuant  to  clause  (iv)  above,  and (b) the
                         amount of any Overcollateralization Increase Amount for
                         that distribution date.

<PAGE>

                               CREDIT ENHANCEMENT

CREDIT  ENHANCEMENT:  Credit  enhancement  for the  structure is provided by the
     following:

                    (i)  Excess Interest;

                    (ii) Overcollateralization; and

                    (iii)Subordination  provided  by the  Class  M Cert  Class A
                         Certificates; and subordination provided by the Class B
                         Certificates  and each  class  of Class M  Certificates
                         with  a  lower   payment   priority   to  the  Class  M
                         Certificates

STEPDOWN DATE:  The earlier to occur of (i) the  distribution  date on which the
     Class A  Certificates  has been reduced to zero and (ii) the later to occur
     of (x) the  distribution  date in July 2005 and (y) the first  distribution
     date on which the Senior Enhancement Percentage is greater than or equal to
     the Specified Enhancement Percentage.

OVERCOLLATERALIZATION  TARGET AMOUNT:  The  Overcollateralization  Target Amount
     ("O/C Target") will be equal to zero for the first four distribution dates.
     On any  distribution  date  thereafter  the O/C Target will be equal to the
     product of (x) 0.50% and (y) the aggregate initial principal balance of the
     mortgage loans.

OVERCOLLATERALIZATION AMOUNT: The  overcollateralization  ("O/C") provisions are
     intended to provide for the limited  acceleration of principal  payments on
     the Class A  Certificates  relative  to the  amortization  of the  mortgage
     loans,   generally   until  the  required  O/C  levels  are  reached.   The
     acceleration of principal  payments is achieved by applying  certain Excess
     Interest collected on the mortgage loans to the payment of principal on the
     Class A Certificates,  resulting in the accumulation of O/C. By paying down
     the  principal  balance  of the  Certificates  faster  than  the  principal
     amortization  of the mortgage  loans,  an O/C amount equal to the excess of
     the  aggregate  unpaid  principal  balance of the  mortgage  loans over the
     principal  balance of the Certificates is created.  Excess Interest will be
     directed to build the O/C amount  until it reaches the required O/C target.
     Upon this event,  the  acceleration  feature  will cease  unless it is once
     again  necessary to maintain the required O/C level.  Excess  Interest will
     begin to be applied on the fifth distribution date (November 2002).

SPECIFIED  ENHANCEMENT  PERCENTAGE:  The  Specified  Enhancement  Percentage  is
     [25.00]%.

SENIOR ENHANCEMENT PERCENTAGE: For any distribution date, the Senior Enhancement
     Percentage  will be equal to a fraction,  the numerator of which is the sum
     of (x) the  aggregate  principal  balance of the Class M  Certificates  and
     Class  B  Certificates  and  (y) the  overcollateralization  amount  of the
     mortgage  loans,  and the  denominator of which is the aggregate  principal
     balance of the mortgage loans.

SUBORDINATION PERCENTAGE:                     Class      Percent
                                              -----      -------
                                               A         [75.00]%
                                              M-1        [84.00]%
                                              M-2        [91.50]%
                                              M-3        [95.50]%
                                               B         [99.00]%

<PAGE>

--------------------------------------------------------------------------------
                            PRIORITY OF DISTRIBUTIONS
------------------------------ -------------------------------------------------

PRIORITY OF DISTRIBUTIONS:  Distributions to the certificateholders will be made
     from the available amount as follows:

                    (i)  distribution  of  interest  to the Class A,  Class M-1,
                         Class M-2, Class M-3 and Class B Certificates,  in that
                         order, less interest shortfalls;

                    (ii) distribution  of principal to the Class A Certificates,
                         other than the Class A-IO  Certificates,  as  described
                         herein,  Class M-1,  Class  M-2,  Class M-3 and Class B
                         Certificates,  in that order, including distribution of
                         principal  to  those   Certificates  to  cover  certain
                         realized   losses   and,   except  on  the  first  four
                         distribution   dates,    distribution   of   additional
                         principal  to  those   certificates   from  the  Excess
                         Interest  on the  mortgage  loans,  until the  required
                         level of overcollateralization is reached;

                    (iii)payment  to the Class A, Class  M-1,  Class M-2,  Class
                         M-3 and Class B Certificates, in that order, in respect
                         of prepayment interest shortfalls;

                    (iv) payment to the Class A, Class M-1,  Class M-2 and Class
                         B Certificates, in that order, in respect to prepayment
                         interest shortfalls  previously  allocated thereto, any
                         prepayment  interest  shortfalls  remaining unpaid from
                         prior   distribution   dates   together  with  interest
                         thereon; and

                    (v)  distribution  of any  remaining  funds to the  Class SB
                         Certificates.

<PAGE>

                             INTEREST DISTRIBUTIONS

INTEREST DISTRIBUTIONS: For each distribution date, interest will be distributed
     in the following order of priority:

 (i)     to  the  Class  A  Certificates,  accrued  interest  less  any
      interest shortfalls ;

 (ii)    to  the  Class  A  Certificates,   any  unpaid  interest  with
      interest from prior distribution dates;

 (iii)   to the  Class  M-1  Certificates,  accrued  interest  less any
      interest shortfalls;

 (iv)    to the  Class  M-1  Certificates,  any  unpaid  interest  with
      interest from prior distribution dates;

 (v)     to the  Class  M-2  Certificates,  accrued  interest  less any
      interest shortfalls;

 (vi)    to the  Class  M-2  Certificates,  any  unpaid  interest  with
      interest from prior distribution dates;

 (vii)   to the  Class  M-3  Certificates,  accrued  interest  less any
      interest shortfalls;

 (viii)  to the  Class  M-3  Certificates,  any  unpaid  interest  with
      interest from prior distribution dates;

 (ix)    to  the  Class  B  Certificates,  accrued  interest  less  any
      interest shortfalls; and

 (x)     to  the  Class  B  Certificates,   any  unpaid  interest  with
      interest from prior distribution dates.

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

<PAGE>

-------------------------------------------------------------------------------
                             PRINCIPAL DISTRIBUTIONS

PRINCIPAL  DISTRIBUTIONS:  For each distribution date, (a) prior to the Stepdown
     Date  or  (b)  on  which  a  Trigger  Event  is in  effect,  the  principal
     distribution amount will be distributed as follows:

   (i)     to the Class A  Certificates,  allocated as  described  below,
        until   the   aggregate   principal   balance   of  the  Class  A
        Certificates is reduced to zero;

   (ii)    to the Class M-1 Certificates,  until the principal balance of
        such certificates is reduced to zero;

   (iii)   to the Class M-2 Certificates,  until the principal balance of
        such certificates is reduced to zero;

   (iv)    to the Class M-3 Certificates,  until the principal balance of
        such certificates is reduced to zero; and

   (v)     to the Class B  Certificates,  until the principal  balance of
        such certificates is reduced to zero.

   For each  distribution  date, (a) on or after the
   Stepdown Date and (b) on which a Trigger Event is
   not in effect, the principal  distribution amount
   will be distributed as follows:

   (i)  the lesser of (x) the principal distribution
        amount   and  (y)  the  Class  A   Principal
        Distribution   Amount,   to  the   Class   A
        Certificates,  allocated as described below,
        until the aggregate principal balance of the
        Class A Certificates is reduced to zero;

   (ii) the  lesser  of (x)  the  excess  of (i) the
        principal  distribution amount over (ii) the
        amount  distributed  to the  holders  of the
        Class A Certificates  under the clause first
        above,  and  (y)  the  Class  M-1  Principal
        Distribution   Amount,   to  the  Class  M-1
        Certificates,  until the aggregate principal
        balance of such  certificates  is reduced to
        zero;

   (iii)the  lesser  of (x)  the  excess  of (i) the
        principal  distribution amount over (ii) the
        amount  distributed  to the  holders  of the
        Class A Certificates  under the clause first
        above  and  the  holders  of the  Class  M-1
        Certificates  under the clause second above,
        and (y) the Class M-2 Principal Distribution
        Amount, to the Class M-2 Certificates, until
        the  aggregate  principal  balance  of  such
        certificates is reduced to zero;

   (iv) the  lesser  of (x)  the  excess  of (i) the
        principal  distribution amount over (ii) the
        amount  distributed  to the  holders  of the
        Class A Certificates  under the clause first
        above,  to  the  holders  of the  Class  M-1
        Certificates  under the clause  second above
        and  to  the   holder   of  the   Class  M-2
        Certificates  under the clause  third above,
        and (y) the Class M-3 Principal Distribution
        Amount, to the Class M-3 Certificates, until
        the  aggregate  principal  balance  of  such
        certificates is reduced to zero; and

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

<PAGE>

                       PRINCIPAL DISTRIBUTIONS (CONTINUED)

   (v) the  lesser  of (x)  the  excess  of (i)  the
       principal  distribution  amount over (ii) the
       amount  distributed  to  the  holders  of the
       Class A  Certificates  under the clause first
       above,  to  the  holders  of  the  Class  M-1
       Certificates  under the clause  second above,
       to the  holder of the Class M-2  Certificates
       under  the  clause  third  above,  and to the
       holders of the Class M-3  Certificates  under
       the clause fourth above,  and (y) the Class B
       Principal Distribution Amount, to the Class B
       Certificates,  until the aggregate  principal
       balance  of such  certificates  is reduced to
       zero.

CLASSA  PRINCIPAL   DISTRIBUTIONS:   Principal  Distributions  to  the  Class  A
     Certificates will be made as follows:

                    (i)  to the Class A-6  Certificates,  the Class A-6  Lockout
                         Distribution  Amount for that distribution  date, until
                         the principal  balance of the Class A-6 Certificates is
                         reduced to zero;

                    (ii) to the Class  A-1  Certificates,  until  the  principal
                         balance of the related certificates is reduced to zero;

                    (iii)to the Class  A-2  Certificates,  until  the  principal
                         balance of the related certificates is reduced to zero;

                    (iv) to the Class  A-3  Certificates,  until  the  principal
                         balance of the related certificates is reduced to zero;

                    (v)  to the Class  A-4  Certificates,  until  the  principal
                         balance of the related certificates is reduced to zero;

                    (vi) to the Class  A-5  Certificates,  until  the  principal
                         balance of the related certificates is reduced to zero;
                         and

                    (vii)to the Class  A-6  Certificates,  until  the  principal
                         balance of the related certificates is reduced to zero.

CLASSA-6 LOCKOUT  DISTRIBUTION AMOUNT: For any distribution date, the product of
     (a) the Class A-6 Lockout  Distribution  Percentage  for that  distribution
     date, (b) a fraction,  the numerator of which is the outstanding  principal
     balance of the Class A-6  Certificates  and the denominator of which is the
     aggregate  outstanding  principal  balance of all Class A Certificates  (in
     each case immediately prior to such distribution  date) and (c) the Class A
     principal distribution amount for such distribution date.

CLASSA-6 LOCKOUT  DISTRIBUTION  PERCENTAGE:  The Class A-6 Lockout  Distribution
     Percentage is assigned as follows:

                                                 Class A-6 Lockout
                        Distribution Dates        Percentage
                        ------------------        ----------
                              1 - 36                   0%
                             37 - 60                  45%
                             61 - 72                  80%
                             73 - 84                  100%
                        85 and thereafter             300%

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

<PAGE>

                       PRINCIPAL DISTRIBUTIONS (CONTINUED)

CLASSA PRINCIPAL  DISTRIBUTION AMOUNT With respect to any distribution date, the
     excess of (x) the : aggregate  certificate principal balance of the Class A
     Certificates  immediately  prior  to that  distribution  date  over (y) the
     lesser of (i) the  applicable  subordination  percentage  of the  aggregate
     principal  balance of the mortgage  loans and (ii) the aggregate  principal
     balance of the mortgage loans minus the O/C target.

CLASSM-1 PRINCIPAL  DISTRIBUTION  AMOUNT With respect to any  distribution  date
     the excess of (x) the sum of (i) aggregate certificate principal balance of
     the Class A Certificates, after taking into account the distribution of the
     Class A Principal  Distribution  Amount and (ii) the certificate  principal
     balance  of  the  Class  M-1   Certificates   immediately   prior  to  that
     distribution  date over (y) the lesser of (i) the applicable  subordination
     percentage of the  aggregate  principal  balance of the mortgage  loans and
     (ii) the aggregate  principal  balance of the mortgage  loans minus the O/C
     target.

CLASSM-2 PRINCIPAL  DISTRIBUTION  AMOUNT With respect to any  distribution  date
     the excess of (x) the sum of (i) aggregate certificate principal balance of
     the Class A  Certificates  and Class M-1  Certificates,  after  taking into
     account the distribution of the Class A Principal  Distribution  Amount and
     Class M-1 Principal  Distribution Amount and (ii) the certificate principal
     balance  of  the  Class  M-2   Certificates   immediately   prior  to  that
     distribution  date over (y) the lesser of (i) the applicable  subordination
     percentage of the  aggregate  principal  balance of the mortgage  loans and
     (ii) the aggregate  principal  balance of the mortgage  loans minus the O/C
     target.

CLASSM-3 PRINCIPAL  DISTRIBUTION  AMOUNT With respect to any  distribution  date
     the excess of (x) the sum of (i) aggregate certificate principal balance of
     the  Class  A  Certificates,   Class  M-1   Certificates,   and  Class  M-2
     Certificates,  after  taking into account the  distribution  of the Class A
     Principal Distribution Amount, Class M-1 Principal Distribution Amount, and
     Class M-2 Principal  Distribution Amount and (ii) the certificate principal
     balance  of  the  Class  M-3   Certificates   immediately   prior  to  that
     distribution  date over (y) the lesser of (i) the applicable  subordination
     percentage of the  aggregate  principal  balance of the mortgage  loans and
     (ii) the aggregate  principal  balance of the mortgage  loans minus the O/C
     target.

<PAGE>

--------------------------------------------------------------------------------
                          EXCESS INTEREST DISTRIBUTIONS

EXCESS INTEREST  DISTRIBUTIONS:  On any distribution  date (other than the first
     [four]  distribution  dates),  the Excess Interest will be allocated in the
     following order of priority:

     (i)  to pay the holders of the  Certificates  the
          principal portion of realized losses,  other
          than a portion of excess losses, incurred on
          the   mortgage   loans  for  the   preceding
          calendar month;

     (ii)    to fund the O/C Target Amount to the Certificates  (other than
          the Class A-IO Certificates);

     (iii)to pay  the  holders  of  the  (a)  Class  A
          Certificates   pro  rata  based  on  accrued
          certificate   interest,    (b)   Class   M-1
          Certificates,  (c) Class  M-2  Certificates,
          (d) Class M-3  Certificates  and (e) Class B
          Certificates,  in that order,  the amount of
          any prepayment interest shortfalls allocated
          thereto with  respect to the mortgage  loans
          for that distribution date;

     (iv) to pay to the  holders  of the  (a)  Class A
          Certificates   pro  rata  based  on  accrued
          certificate   interest,    (b)   Class   M-1
          Certificates,  (c) Class  M-2  Certificates,
          (d) Class M-3  Certificates  and (e) Class B
          Certificates, in that order, based on unpaid
          prepayment  interest  shortfalls  previously
          allocated thereto,  any prepayment  interest
          shortfalls   remaining   unpaid  from  prior
          distribution  dates  together  with interest
          thereon; and

     (v)     to pay the  holders of the Class SB  Certificates  any balance
          remaining,  in  accordance  to  the  terms  of  the  pooling  and
          servicing agreement.
---- -----------------------------------------------------------------------

<PAGE>

--------------------------------------------------------------------------------
                              ALLOCATION OF LOSSES

ALLOCATION OF LOSSES:  Any realized losses on the mortgage  loans,  that are not
     excess  losses,  as defined in the  prospectus,  will be  allocated  in the
     following order of priority:

     (i)     to Excess Interest for the related distribution date;

     (ii)    to the overcollateralization amount, until reduced to zero;

     (iii)   to the Class B Certificates, until reduced to zero;

     (iv)    to the Class M-3 Certificates, until reduced to zero;

     (v)     to the Class M-2 Certificates, until reduced to zero;

     (vi)    to the Class M-1 Certificates, until reduced to zero; and

     (vii)   among the Class A Certificates  on a pro-rata basis.

     Excess losses will be allocated  among all of the
     Certificates on a pro rata basis.

PROSPECTUS:  The Public  Certificates  will be offered  pursuant to a Prospectus
     which  includes  a  Prospectus  Supplement  (together,  the  "Prospectus").
     Additional  information  with  respect to the Public  Certificates  and the
     mortgage loans is contained in the  Prospectus.  The foregoing is qualified
     in its  entirety by the  information  appearing in the  Prospectus.  To the
     extent  that  the  foregoing  is  inconsistent  with  the  Prospectus,  the
     Prospectus shall govern in all respects.  Sales of the Public  Certificates
     may not be consummated unless the purchaser has received the Prospectus.

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

<PAGE>

<TABLE>
<CAPTION>

                                    RFMSII SERIES 2002-HS2
                        MORTGAGE LOAN CHARACTERISTICS SUMMARY REPORT

SUMMARY                                                             TOTAL           MINIMUM           MAXIMUM
---------------------------------------------------------------------------------------------------------------
Cut-off Date Aggregate Principal Balance                      $386,895,161
Number of Loans                                                     10,495
<S>                                                                <C>                <C>             <C>
Average Current Loan Balance                                       $36,865            $1,475          $299,596
(1) Weighted Average Combined Original Loan-to-Value Ratio          90.33%            11.00%           100.00%
(1) Weighted Average Junior Mortgage Ratio                          19.65%             1.52%           100.00%
(1) Weighted Average Mortgage Rate                                 9.2376%           6.0000%          16.8750%
(1) Weighted Average Original Term to Maturity (months)                180                60               360
(1) Weighted Average Remaining Term to Maturity (months)               178                41               355
(1) Weighted Average Credit Score                                      723               620               825
(1) Weighted Average Debt-to-Income Ratio                           37.75%             3.00%            55.00%
---------------------------------------------------------------------------------------------------------------
(1) Weighted Average reflected in Total.

---------------------------------------------------------------------------------------------------------------
                                                                                         PERCENT OF CURRENT
                                                RANGE                                     PRINCIPAL BALANCE

         Product Type                           Fully Amortizing                                43.38%
                                                Balloon Payment                                 56.62%

         Lien                                   First                                            0.23%
                                                Second                                          99.77%

         Property Type                          Single-family Residence                         68.72%
                                                Planned Unit Developments (detached)            19.42%
                                                Condominium                                      6.69%
                                                Planned Unit Developments (attached)             3.04%
                                                Multifamily (Two to Four Units)                  1.16%
                                                Townhouse                                        0.74%
                                                Manufactured Home                                0.11%
                                                Townhouse/Rowhouse (detached)                    0.06%
                                                Other                                            0.05%

         Occupancy Status                       Primary Residence                               99.62%
                                                Second Home                                      0.37%
                                                Non Owner-occupied                               0.01%

         Geographic Distribution                California                                      37.45%
                                    Virginia
                                                                                                 5.55%
                                     Georgia
                                                                                                 5.46%
                                    Maryland
                                                                                                 5.08%
                                   Washington
                                                                                                 3.78%

         Largest Zip Code Concentration                                                          0.37%

         Loans with Prepayment Penalties                                                        13.63%
---------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                CREDIT SCORE

--------------------------------------------------------------------------------
        RANGE OF        NUMBER      PRINCIPAL BALANCE       PERCENT OF AGGREGATE
                                       OUTSTANDING           PRINCIPAL BALANCE
                      OF MORTGAGE       AS OF THE          OUTSTANDING AS OF THE
      CREDIT SCORES      LOANS         CUT-OFF DATE            CUT-OFF DATE
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
20 to 639                 126            $    3,240,770            0.84%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
40 to 659                        633                21,378,215           5.53
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
60 to 679                      1,010                37,257,708           9.63
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
80 to 699                      1,615                65,067,340          16.82
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
00 to 719                      1,449                57,196,888          14.78
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
20 to 739                      1,573                59,230,387          15.31
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
40 to 759                      1,585                57,124,676          14.76
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
60 to 779                      1,487                50,656,275          13.09
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
80 to 799                        875                30,905,490           7.99
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
00 to 825                        142                 4,837,413           1.25
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
          TOTAL               10,495           $   386,895,161          100.00%
================================================================================

                             MORTGAGE RATES

--------------------------------------------------------------------------------
        RANGE OF        NUMBER      PRINCIPAL BALANCE       PERCENT OF AGGREGATE
                                       OUTSTANDING           PRINCIPAL BALANCE
                       F MORTGAGE       AS OF THE          OUTSTANDING AS OF THE
     MORTGAGE RATES      LOANS         CUT-OFF DATE            CUT-OFF DATE
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
  5.501%  to    6.000%              3             $     222,001         0.06%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
  6.501%  to    7.000%             11                   638,851        0.17
------------------------------------------------------------------------------
------------------------------------------------------------------------------
  7.001%  to    7.500%             87                 3,199,319        0.83
------------------------------------------------------------------------------
------------------------------------------------------------------------------
  7.501%  to    8.000%            854                29,256,509        7.56
------------------------------------------------------------------------------
------------------------------------------------------------------------------
  8.001%  to    8.500%          2,262                75,676,556       19.56
------------------------------------------------------------------------------
------------------------------------------------------------------------------
  8.501%  to    9.000%          2,582                93,650,110       24.21
------------------------------------------------------------------------------
------------------------------------------------------------------------------
  9.001%  to    9.500%          1,649                63,813,340       16.49
------------------------------------------------------------------------------
------------------------------------------------------------------------------
  9.501%  to  10.000%           1,231                49,457,095       12.78
------------------------------------------------------------------------------
------------------------------------------------------------------------------
10.001%  to  10.500%              602                24,601,237        6.36
------------------------------------------------------------------------------
------------------------------------------------------------------------------
10.501%  to  11.000%              463                17,924,339        4.63
------------------------------------------------------------------------------
------------------------------------------------------------------------------
11.001%  to  11.500%              297                11,567,488        2.99
------------------------------------------------------------------------------
------------------------------------------------------------------------------
11.501%  to  12.000%              208                 7,707,046        1.99
------------------------------------------------------------------------------
------------------------------------------------------------------------------
12.001%  to  12.500%              121                 4,565,122        1.18
------------------------------------------------------------------------------
------------------------------------------------------------------------------
12.501%  to  13.000%               80                 2,884,811        0.75
------------------------------------------------------------------------------
------------------------------------------------------------------------------
13.001%  to  13.500%               25                   974,201        0.25
------------------------------------------------------------------------------
------------------------------------------------------------------------------
13.501%  to  14.000%               15                   575,081        0.15
------------------------------------------------------------------------------
------------------------------------------------------------------------------
14.001%  to  14.500%                1                    42,778        0.01
------------------------------------------------------------------------------
------------------------------------------------------------------------------
14.501%  to  15.000%                2                    70,494        0.02
------------------------------------------------------------------------------
------------------------------------------------------------------------------
15.001%  to  15.500%                1                    43,300        0.01
------------------------------------------------------------------------------
------------------------------------------------------------------------------
16.501%  to  17.000%                1                    25,483        0.01
------------------------------------------------------------------------------
------------------------------------------------------------------------------
           TOTAL               10,495           $   386,895,161       100.00%
==============================================================================

<PAGE>

            ORIGINAL MORTGAGE LOAN PRINCIPAL BALANCES
----------------------------------------------------------------------------
        RANGE OF    NUMBER      PRINCIPAL BALANCE       PERCENT OF AGGREGATE
                                   OUTSTANDING           PRINCIPAL BALANCE
                   OF MORTGAGE       AS OF THE          OUTSTANDING AS OF THE
     MORTGAGE RATES  LOANS         CUT-OFF DATE            CUT-OFF DATE
----------------------------------------------------------------------------
$0.01 to                    3,347      $    62,085,662          16.05%
$25,000.00
---------------------------------------------------------------------------
---------------------------------------------------------------------------
  $25,000.01 to                 5,116          183,967,947         47.55
$50,000.00
---------------------------------------------------------------------------
---------------------------------------------------------------------------
  $50,000.01 to                 1,500           90,667,797         23.43
$75,000.00
---------------------------------------------------------------------------
---------------------------------------------------------------------------
  $75,000.01 to  $100,000.00      463           40,531,561         10.48
---------------------------------------------------------------------------
---------------------------------------------------------------------------
$100,000.01 to  $125,000.00        29            3,294,347          0.85
---------------------------------------------------------------------------
---------------------------------------------------------------------------
$125,000.01 to  $150,000.00        26            3,599,821          0.93
---------------------------------------------------------------------------
---------------------------------------------------------------------------
$150,000.01 to  $175,000.00         2              306,116          0.08
---------------------------------------------------------------------------
---------------------------------------------------------------------------
$175,000.01 to  $200,000.00        10            1,917,464          0.50
---------------------------------------------------------------------------
---------------------------------------------------------------------------
$225,000.01 to  $250,000.00         1              224,849          0.06
---------------------------------------------------------------------------
---------------------------------------------------------------------------
$250,000.01 to  $300,000.00         1              299,596          0.08
---------------------------------------------------------------------------
---------------------------------------------------------------------------
           TOTAL               10,495      $   386,895,161         100.00%
===========================================================================

         CURRENT MORTGAGE LOAN PRINCIPAL BALANCES

-------------------------------------------------------------------------------
     RANGE OF CURRENT       NUMBER   PRINCIPAL BALANCE   PERCENT OF AGGREGATE
                                        OUTSTANDING       PRINCIPAL BALANCE
       MORTGAGE LOAN      OF MORTGAGE    AS OF THE      OUTSTANDING AS OF THE
    PRINCIPAL BALANCES       LOANS      CUT-OFF DATE        CUT-OFF DATE
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
           $0.01 to         3,405        $    63,328,607        16.37%
$25,000.00
---------------------------------------------------------------------------
---------------------------------------------------------------------------
  $25,000.01 to                 5,090            184,065,364       47.57
$50,000.00
---------------------------------------------------------------------------
---------------------------------------------------------------------------
  $50,000.01 to                 1,472             89,499,230       23.13
$75,000.00
---------------------------------------------------------------------------
---------------------------------------------------------------------------
  $75,000.01 to  $100,000.00      460             40,459,688       10.46
---------------------------------------------------------------------------
---------------------------------------------------------------------------
$100,000.01 to  $125,000.00        28              3,194,426        0.83
---------------------------------------------------------------------------
---------------------------------------------------------------------------
$125,000.01 to  $150,000.00        27              3,749,537        0.97
---------------------------------------------------------------------------
---------------------------------------------------------------------------
$150,000.01 to  $175,000.00         1                156,400        0.04
---------------------------------------------------------------------------
---------------------------------------------------------------------------
$175,000.01 to  $200,000.00        10              1,917,464        0.50
---------------------------------------------------------------------------
---------------------------------------------------------------------------
$225,000.01 to  $250,000.00         1                224,849        0.06
---------------------------------------------------------------------------
---------------------------------------------------------------------------
$250,000.01 to  $300,000.00         1                299,596        0.08
---------------------------------------------------------------------------
---------------------------------------------------------------------------
           TOTAL               10,495        $   386,895,161       100.00%
===========================================================================

<PAGE>

                 ORIGINAL COMBINED LOAN-TO-VALUE RATIOS

--------------------------------------------------------------------------------
        RANGE OF          NUMBER      PRINCIPAL BALANCE    PERCENT OF AGGREGATE
                                         OUTSTANDING        PRINCIPAL BALANCE
    ORIGINAL COMBINED   OF MORTGAGE       AS OF THE       OUTSTANDING AS OF THE
LOAN-TO-VALUE RATIOS (%)   LOANS         CUT-OFF DATE         CUT-OFF DATE
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
10.01 to   20.00              4             $     196,265            0.05%
---------------------------------------------------------------------------
---------------------------------------------------------------------------
20.01 to   30.00              6                   195,233           0.05
---------------------------------------------------------------------------
---------------------------------------------------------------------------
30.01 to   40.00             21                   702,735           0.18
---------------------------------------------------------------------------
---------------------------------------------------------------------------
40.01 to   50.00             39                 1,526,337           0.39
---------------------------------------------------------------------------
---------------------------------------------------------------------------
50.01 to   60.00            101                 4,498,301           1.16
---------------------------------------------------------------------------
---------------------------------------------------------------------------
60.01 to   70.00            222                10,159,056           2.63
---------------------------------------------------------------------------
---------------------------------------------------------------------------
70.01 to   75.00            221                 9,211,932           2.38
---------------------------------------------------------------------------
---------------------------------------------------------------------------
75.01 to   80.00            488                22,426,024           5.80
---------------------------------------------------------------------------
---------------------------------------------------------------------------
80.01 to   85.00            637                19,051,442           4.92
---------------------------------------------------------------------------
---------------------------------------------------------------------------
85.01 to   90.00          3,627               115,649,820          29.89
---------------------------------------------------------------------------
---------------------------------------------------------------------------
90.01 to   95.00          3,614               138,968,283          35.92
---------------------------------------------------------------------------
---------------------------------------------------------------------------
95.01 to 100.00           1,515                64,309,733          16.62
---------------------------------------------------------------------------
---------------------------------------------------------------------------
          TOTAL          10,495           $   386,895,161          100.00%
===========================================================================

                          JUNIOR MORTGAGE RATIOS(1)

--------------------------------------------------------------------------------
          RANGE OF           NUMBER      PRINCIPAL BALANCE  PERCENT OF AGGREGATE
                                            OUTSTANDING      PRINCIPAL BALANCE
                           OF MORTGAGE       AS OF THE     OUTSTANDING AS OF THE
 JUNIOR MORTGAGE RATIOS (%)   LOANS         CUT-OFF DATE       CUT-OFF DATE
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
    0.01 to     5.00           147            $    1,765,081         0.46%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
    5.01 to   10.00            941                19,457,339         5.04
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  10.01 to   15.00           3,221                96,711,123        25.05
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  15.01 to   20.00           4,038               158,482,056        41.06
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  20.01 to   25.00             761                35,539,388         9.21
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  25.01 to   30.00             439                20,209,871         5.24
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  30.01 to   40.00             539                29,730,997         7.70
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  40.01 to   50.00             232                13,734,801         3.56
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  50.01 to   60.00              94                 5,850,822         1.52
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  60.01 to   70.00              37                 2,872,004         0.74
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  70.01 to   80.00              15                 1,037,754         0.27
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  80.01 to   90.00               7                   471,150         0.12
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  90.01 to 100.00                4                   135,078         0.03
----------------------------------------------------------------------------
----------------------------------------------------------------------------
            TOTAL            10,475          $   385,997,465        100.00%
============================================================================

       (1) The preceding table excludes mortgage loans secured by first liens on
       the  related  mortgaged  property.  With  respect to each  mortgage  loan
       secured by a second lien on the related  mortgaged  property,  the junior
       mortgage  ratio is the ratio of the  original  principal  balance of such
       mortgage  loan to the sum of (i) the original  principal  balance of such
       mortgage loan, and (ii) the unpaid  principal  balance of any senior lien
       at the time of the origination of such mortgage loan.

<PAGE>

                     ORIGINAL TERM TO STATED MATURITY

--------------------------------------------------------------------------------
                           NUMBER      PRINCIPAL BALANCE    PERCENT OF AGGREGATE
                                          OUTSTANDING        PRINCIPAL BALANCE
         RANGE OF        OF MORTGAGE       AS OF THE       OUTSTANDING AS OF THE
  ORIGINAL TERM (MONTHS)    LOANS         CUT-OFF DATE         CUT-OFF DATE
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
     1 to     96              55            $    1,401,663          0.36%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
 109 to   120                251                 7,852,988         2.03
--------------------------------------------------------------------------
--------------------------------------------------------------------------
 121 to   168                  1                    24,693         0.01
--------------------------------------------------------------------------
--------------------------------------------------------------------------
 169 to   180             10,019               369,804,094        95.58
--------------------------------------------------------------------------
--------------------------------------------------------------------------
 181 to   288                 75                 3,371,884         0.87
--------------------------------------------------------------------------
--------------------------------------------------------------------------
 289 to   300                 84                 4,159,861         1.08
--------------------------------------------------------------------------
--------------------------------------------------------------------------
 301 to   360                 10                   279,979         0.07
--------------------------------------------------------------------------
--------------------------------------------------------------------------
           TOTAL          10,495           $   386,895,161        100.00%
==========================================================================

                     REMAINING TERM TO STATED MATURITY

--------------------------------------------------------------------------------
                             NUMBER      PRINCIPAL BALANCE  PERCENT OF AGGREGATE
                                            OUTSTANDING      PRINCIPAL BALANCE
         RANGE OF          OF MORTGAGE       AS OF THE     OUTSTANDING AS OF THE
  REMAINING TERM (MONTHS)     LOANS         CUT-OFF DATE       CUT-OFF DATE
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
     1 to     96                   55            $    1,401,663      0.36%
---------------------------------------------------------------------------
---------------------------------------------------------------------------
 109 to   120                     251                 7,852,988     2.03
---------------------------------------------------------------------------
---------------------------------------------------------------------------
 145 to   156                       3                   129,999     0.03
---------------------------------------------------------------------------
---------------------------------------------------------------------------
 157 to   168                      19                   686,052     0.18
---------------------------------------------------------------------------
---------------------------------------------------------------------------
 169 to   180                   9,998               369,012,736    95.38
---------------------------------------------------------------------------
---------------------------------------------------------------------------
 181 to   288                      76                 3,420,700     0.88
---------------------------------------------------------------------------
---------------------------------------------------------------------------
 289 to   300                      83                 4,111,045     1.06
---------------------------------------------------------------------------
---------------------------------------------------------------------------
 301 to   360                      10                   279,979     0.07
---------------------------------------------------------------------------
---------------------------------------------------------------------------
           TOTAL               10,495           $   386,895,161    100.00%
===========================================================================

<PAGE>

              GEOGRAPHIC DISTRIBUTION OF MORTGAGED PROPERTIES

--------------------------------------------------------------------------------
                          NUMBER      PRINCIPAL BALANCE PERCENT OF AGGREGATE
                                         OUTSTANDING     PRINCIPAL BALANCE
                        OF MORTGAGE       AS OF THE    OUTSTANDING AS OF THE
    STATE OR TERRITORY     LOANS         CUT-OFF DATE      CUT-OFF DATE
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
California                3,498           $   144,897,324          37.45%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Virginia                    549                21,455,351          5.55
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Georgia                     669                21,139,315          5.46
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Maryland                    540                19,643,993          5.08
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Washington                  436                14,613,909          3.78
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Oregon                      449                13,033,831          3.37
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Florida                     363                12,573,750          3.25
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Colorado                    347                12,481,892          3.23
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Arizona                     360                12,082,417          3.12
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Massachusetts               283                11,033,720          2.85
--------------------------------------------------------------------------
--------------------------------------------------------------------------
New Jersey                  235                 8,423,677          2.18
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Texas                       279                 8,338,711          2.16
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Other (1)                 2,487                87,177,272         22.53
--------------------------------------------------------------------------
--------------------------------------------------------------------------
           TOTAL         10,495           $   386,895,161         100.00%
==========================================================================

          (1) Other  includes  states and the District of Columbia with under 2%
concentrations individually.

                         MORTGAGED PROPERTY TYPES

-------------------------------------------------------------------------------
       PROPERTY TYPE      NUMBER      PRINCIPAL BALANCE   PERCENT OF AGGREGATE
                                         OUTSTANDING       PRINCIPAL BALANCE
                        OF MORTGAGE       AS OF THE      OUTSTANDING AS OF THE
                           LOANS         CUT-OFF DATE        CUT-OFF DATE
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Single-family Residence         7,140           $   265,870,036         68.72%
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
PUD Detached                    1,990                75,145,546        19.42
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Condominium                       805                25,879,447         6.69
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
PUD Attached                      357                11,779,596         3.04
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Multifamily (Two to Four          100                 4,486,346         1.16
Units)
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Townhouse                          72                 2,861,744         0.74
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Manufactured Home                  19                   435,463         0.11
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Townhouse/Rowhouse Detached         5                   237,278         0.06
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Site Condo                          5                   163,226         0.04
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Modular                             2                    36,480         0.01
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
           TOTAL               10,495           $   386,895,161        100.00%
===============================================================================

<PAGE>

<TABLE>
<CAPTION>

                                   MORTGAGE LOAN PURPOSE

----------------------------------------------------------------------------------------------------
            LOAN PURPOSE                NUMBER      PRINCIPAL BALANCE       PERCENT OF AGGREGATE
                                                       OUTSTANDING           PRINCIPAL BALANCE
                                      OF MORTGAGE       AS OF THE          OUTSTANDING AS OF THE
                                         LOANS         CUT-OFF DATE            CUT-OFF DATE
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
<S>                                     <C>             <C>                                  <C>
 Purchase Money                         5,092           $   186,746,599                      48.27%
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
 Debt Consolidation                     2,396                98,669,417                     25.50
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
 Cash                                   1,214                42,556,153                     11.00
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
 Rate/Term Refinance                    1,371                43,821,405                     11.33
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
 Home Improvement/Debt Consolidation      210                 7,751,774                      2.00
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
 Convenience                               52                 2,079,846                      0.54
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
 Asset Acquisition                         11                   425,386                      0.11
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
 Home Improvement                          16                   404,100                      0.10
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
 Education                                  2                    69,709                      0.02
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
 Other                                    131                 4,370,773                      1.13
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
               TOTAL                   10,495           $   386,895,161                     100.00%
====================================================================================================

                                      OCCUPANCY TYPES

       ---------------------------------------------------------------------------------------------
                 OCCUPANCY              NUMBER      PRINCIPAL BALANCE       PERCENT OF AGGREGATE
                                                       OUTSTANDING           PRINCIPAL BALANCE
                                      OF MORTGAGE       AS OF THE          OUTSTANDING AS OF THE
                                         LOANS         CUT-OFF DATE            CUT-OFF DATE
       ---------------------------------------------------------------------------------------------
       ---------------------------------------------------------------------------------------------
        Primary Residence              10,442           $   385,417,910                      99.62%
       ---------------------------------------------------------------------------------------------
       ---------------------------------------------------------------------------------------------
        Second Home                        52                 1,447,193                      0.37
       ---------------------------------------------------------------------------------------------
       ---------------------------------------------------------------------------------------------
        Non Owner-occupied                  1                    30,058                      0.01
       ---------------------------------------------------------------------------------------------
       ---------------------------------------------------------------------------------------------
                   TOTAL               10,495           $   386,895,161                     100.00%
       =============================================================================================

                                       LIEN PRIORITY

       ---------------------------------------------------------------------------------------------
               LIEN PRIORITY            NUMBER      PRINCIPAL BALANCE       PERCENT OF AGGREGATE
                                                       OUTSTANDING           PRINCIPAL BALANCE
                                      OF MORTGAGE       AS OF THE          OUTSTANDING AS OF THE
                                         LOANS         CUT-OFF DATE            CUT-OFF DATE
       ---------------------------------------------------------------------------------------------
       ---------------------------------------------------------------------------------------------
        First Lien                         20             $     897,697                       0.23%
       ---------------------------------------------------------------------------------------------
       ---------------------------------------------------------------------------------------------
        Second Lien                    10,475               385,997,465                     99.77
       ---------------------------------------------------------------------------------------------
       ---------------------------------------------------------------------------------------------
                   TOTAL               10,495           $   386,895,161                     100.00%
       =============================================================================================
</TABLE>

<PAGE>

                          DEBT-TO-INCOME RATIOS

-------------------------------------------------------------------------------
                           NUMBER      PRINCIPAL BALANCE   PERCENT OF AGGREGATE
                                          OUTSTANDING       PRINCIPAL BALANCE
        RANGE OF         OF MORTGAGE       AS OF THE      OUTSTANDING AS OF THE
DEBT-TO-INCOME RATIOS (%    LOANS         CUT-OFF DATE        CUT-OFF DATE
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
  0.01 to     5.00                 5             $     301,322           0.08%
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
  5.01 to   10.00                 13                   488,735          0.13
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
10.01 to   15.00                  67                 2,206,146          0.57
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
15.01 to   20.00                 240                 7,665,821          1.98
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
20.01 to   25.00                 615                19,148,567          4.95
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
25.01 to   30.00               1,261                42,466,622         10.98
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
30.01 to   35.00               1,769                62,107,162         16.05
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
35.01 to   40.00               2,333                85,681,016         22.15
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
40.01 to   45.00               2,993               118,625,176         30.66
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
45.01 to   50.00               1,177                47,407,379         12.25
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
50.01 to   55.00                  22                   797,215          0.21
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
          TOTAL               10,495           $   386,895,161         100.00%
===============================================================================

                            RESIDUAL INCOME(1)

--------------------------------------------------------------------------------
         RANGE OF           NUMBER      PRINCIPAL BALANCE  PERCENT OF AGGREGATE
                                           OUTSTANDING      PRINCIPAL BALANCE
                          OF MORTGAGE       AS OF THE     OUTSTANDING AS OF THE
 RESIDUAL INCOME BALANCES    LOANS         CUT-OFF DATE       CUT-OFF DATE
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
     Less than    $1,500          184            $    4,644,796          1.20%
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
 $1,500.01 to    $1,999.00        477                13,400,730         3.46
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
 $1,999.01 to    $2,999.00      1,781                52,221,945        13.50
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
 $2,999.01 to    $3,999.00      2,138                70,734,019        18.28
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
 $3,999.01 to    $4,999.00      1,941                70,979,785        18.35
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
 $4,999.01 to    $5,999.00      1,301                50,221,881        12.98
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
 $5,999.01 or Greater           2,673               124,692,006        32.23
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
           TOTAL               10,495           $   386,895,161        100.00%
===============================================================================

       (1) Residual income is the amount of the mortgagor's gross monthly income
       remaining after deducting  monthly mortgage payments on the mortgage loan
       and all other  mortgage  loans  secured by a senior or junior lien on the
       mortgaged property,  and monthly debt service on debts listed on a credit
       report  or  other   documentation   obtained  in   connection   with  the
       underwriting of the mortgage loans.

<PAGE>

                     ORIGINAL PREPAYMENT PENALTY TERM

--------------------------------------------------------------------------------
 ORIGINAL PREPAYMENT   NUMBER         PRINCIPAL BALANCE    PERCENT OF AGGREGATE
                                         OUTSTANDING        PRINCIPAL BALANCE
    PENALTY TERM     OF MORTGAGE          AS OF THE       OUTSTANDING AS OF THE
      (MONTHS)          LOANS            CUT-OFF DATE         CUT-OFF DATE
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
 None                     9,273           $   334,156,330           86.37%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
 6                                 15                   673,071           0.17
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
 12                                89                 3,706,430           0.96
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
 24                                 7                   363,504           0.09
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
 36                             1,062                46,370,792          11.99
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
 42                                 2                   152,053           0.04
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
 48                                 1                    43,142           0.01
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
 60                                46                 1,429,838           0.37
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
        TOTAL                  10,495           $   386,895,161          100.00%
================================================================================

<PAGE>

<TABLE>
<CAPTION>

                           BOND SUMMARY (TO MATURITY)

CLASS A-1 (TO MATURITY)
-------------------------------------------------------------------------------------------------------
PPC                                   0%       50%       75%      100%      125%     150%      200%
-------------------------------------------------------------------------------------------------------
<S>                                  <C>       <C>      <C>       <C>       <C>      <C>       <C>
  Average Life (Years)               7.72      1.55     1.13      0.91      0.77     0.67      0.54
  Modified Duration                  6.95      1.51     1.11      0.89      0.75     0.66      0.54
  First Principal Payment Date      7/25/02  7/25/02   7/25/02   7/25/02  7/25/02   7/25/02   7/25/02
  Last Principal Payment Date       2/25/16  7/25/05   8/25/04   2/25/04  11/25/03  8/25/03   5/25/03
  Principal Payment Window            164       37       26        20        17       14        11
(Months)

CLASS A-2 (TO MATURITY)
-------------------------------------------------------------------------------------------------------
PPC                                   0%       50%       75%      100%      125%     150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)               14.53     3.80     2.61      2.01      1.64     1.38      1.05
  Modified Duration                  10.74     3.45     2.43      1.90      1.55     1.32      1.01
  First Principal Payment Date      2/25/16  7/25/05   8/25/04   2/25/04  11/25/03  8/25/03   5/25/03
  Last Principal Payment Date       3/25/17  2/25/07   7/25/05  10/25/04  5/25/04   1/25/04   8/25/03
  Principal Payment Window            14        20       12         9        7         6         4
(Months)

CLASS A-3 (TO MATURITY)
-------------------------------------------------------------------------------------------------------
PPC                                   0%       50%       75%      100%      125%     150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)               14.74     6.82     4.26      3.00      2.29     1.90      1.41
  Modified Duration                  10.45     5.68     3.77      2.74      2.13     1.78      1.34
  First Principal Payment Date      3/25/17  2/25/07   7/25/05  10/25/04  5/25/04   1/25/04   8/25/03
  Last Principal Payment Date       3/25/17  9/25/12   4/25/08   7/25/06  3/25/05   9/25/04   2/25/04
  Principal Payment Window             1        68       34        22        11        9         7
(Months)

CLASS A-4 (TO MATURITY)
-------------------------------------------------------------------------------------------------------
PPC                                   0%       50%       75%      100%      125%     150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)               14.74    12.46     8.28      5.01      3.35     2.47      1.79
  Modified Duration                  9.91      8.82     6.46      4.27      2.98     2.26      1.67
  First Principal Payment Date      3/25/17  9/25/12   4/25/08   7/25/06  3/25/05   9/25/04   2/25/04
  Last Principal Payment Date       3/25/17  3/25/17   1/25/14   1/25/09  10/25/06  3/25/05   6/25/04
  Principal Payment Window             1        55       70        31        20        7         5
(Months)

CLASS A-5 (TO MATURITY)
-------------------------------------------------------------------------------------------------------
PPC                                   0%       50%       75%      100%      125%     150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)               15.33    14.74     13.55     10.47     5.32     2.83      2.03
  Modified Duration                  9.73      9.52     8.99      7.48      4.39     2.53      1.86
  First Principal Payment Date      3/25/17  3/25/17   1/25/14   1/25/09  10/25/06  3/25/05   6/25/04
  Last Principal Payment Date       4/25/22  3/25/17   3/25/17  10/25/16  1/25/14   6/25/05   7/25/04
  Principal Payment Window            62        1        39        94        88        4         2
(Months)

<PAGE>

                                  BOND SUMMARY (TO MATURITY)

CLASS A-6 (TO MATURITY)
-------------------------------------------------------------------------------------------------------
PPC                                   0%       50%       75%      100%      125%     150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)               10.40     7.23     6.66      6.41      6.38     5.38      2.43
  Modified Duration                  7.55      5.71     5.35      5.19      5.17     4.48      2.22
  First Principal Payment Date      7/25/05  7/25/05   7/25/05  10/25/05  2/25/06   6/25/05   7/25/04
  Last Principal Payment Date       3/25/17  3/25/17   3/25/17   7/25/16  11/25/13 12/25/11   4/25/05
  Principal Payment Window            141      141       141       130       94       79        10
(Months)

CLASS M-1 (TO MATURITY)
-------------------------------------------------------------------------------------------------------
PPC                                   0%       50%       75%      100%      125%     150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)               14.73     8.74     6.45      5.08      4.40     4.18      4.61
  Modified Duration                  9.58      6.47     5.07      4.19      3.74     3.60      3.90
  First Principal Payment Date      9/25/16  9/25/06   7/25/05   9/25/05  10/25/05  1/25/06   4/25/05
  Last Principal Payment Date       3/25/17  3/25/17   7/25/16   6/25/13  3/25/11   8/25/09   1/25/09
  Principal Payment Window             7       127       133       94        66       44        46
(Months)

CLASS M-2 (TO MATURITY)
-------------------------------------------------------------------------------------------------------
PPC                                   0%       50%       75%      100%      125%     150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)               14.73     8.73     6.35      4.96      4.22     3.86      3.65
  Modified Duration                  9.37      6.36     4.96      4.07      3.57     3.32      3.17
  First Principal Payment Date      9/25/16  9/25/06   7/25/05   7/25/05  8/25/05   9/25/05   9/25/05
  Last Principal Payment Date       3/25/17  3/25/17   3/25/15   4/25/12  4/25/10  11/25/08  11/25/06
  Principal Payment Window             7       127       117       82        57       39        15
(Months)

CLASS M-3 (TO MATURITY)
-------------------------------------------------------------------------------------------------------
PPC                                   0%       50%       75%      100%      125%     150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)               14.73     8.53     6.10      4.74      4.01     3.61      3.20
  Modified Duration                  9.25      6.22     4.80      3.91      3.41     3.12      2.81
  First Principal Payment Date      9/25/16  9/25/06   7/25/05   7/25/05  7/25/05   8/25/05   7/25/05
  Last Principal Payment Date       3/25/17  11/25/16  2/25/13   8/25/10  12/25/08 10/25/07   2/25/06
  Principal Payment Window             7       123       92        62        42       27         8
(Months)

CLASS B (TO MATURITY)
-------------------------------------------------------------------------------------------------------
PPC                                   0%       50%       75%      100%      125%     150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)               14.72     7.26     5.12      4.02      3.47     3.22      2.96
  Modified Duration                  9.25      5.55     4.19      3.42      3.01     2.82      2.62
  First Principal Payment Date      9/25/16  9/25/06   7/25/05   7/25/05  7/25/05   7/25/05   5/25/05
  Last Principal Payment Date       3/25/17  4/25/14  12/25/10  12/25/08  8/25/07   8/25/06   7/25/05
  Principal Payment Window             7        92       66        42        26       14         3
(Months)

<PAGE>

                                    BOND SUMMARY (TO CALL)

CLASS A-1 (TO CALL)
-------------------------------------------------------------------------------------------------------
PPC                                  0%        50%      75%      100%      125%      150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)              7.72      1.55      1.13     0.91      0.77      0.67      0.54
  Modified Duration                 6.95      1.51      1.11     0.89      0.75      0.66      0.54
  First Principal Payment Date     7/25/02   7/25/02  7/25/02   7/25/02   7/25/02   7/25/02   7/25/02
  Last Principal Payment Date      2/25/16   7/25/05  8/25/04   2/25/04  11/25/03   8/25/03   5/25/03
  Principal Payment Window           164       37        26       20        17        14        11
(Months)

CLASS A-2 (TO CALL)
-------------------------------------------------------------------------------------------------------
PPC                                  0%        50%      75%      100%      125%      150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)              14.53     3.80      2.61     2.01      1.64      1.38      1.05
  Modified Duration                 10.74     3.45      2.43     1.90      1.55      1.32      1.01
  First Principal Payment Date     2/25/16   7/25/05  8/25/04   2/25/04  11/25/03   8/25/03   5/25/03
  Last Principal Payment Date      3/25/17   2/25/07  7/25/05  10/25/04   5/25/04   1/25/04   8/25/03
  Principal Payment Window           14        20        12        9         7         6         4
(Months)

CLASS A-3 (TO CALL)
-------------------------------------------------------------------------------------------------------
PPC                                  0%        50%      75%      100%      125%      150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)              14.74     6.82      4.26     3.00      2.29      1.90      1.41
  Modified Duration                 10.45     5.68      3.77     2.74      2.13      1.78      1.34
  First Principal Payment Date     3/25/17   2/25/07  7/25/05  10/25/04   5/25/04   1/25/04   8/25/03
  Last Principal Payment Date      3/25/17   9/25/12  4/25/08   7/25/06   3/25/05   9/25/04   2/25/04
  Principal Payment Window            1        68        34       22        11         9         7
(Months)

CLASS A-4 (TO CALL)
-------------------------------------------------------------------------------------------------------
PPC                                  0%        50%      75%      100%      125%      150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)              14.74     11.74     7.76     5.01      3.35      2.47      1.79
  Modified Duration                 9.91      8.47      6.16     4.27      2.98      2.26      1.67
  First Principal Payment Date     3/25/17   9/25/12  4/25/08   7/25/06   3/25/05   9/25/04   2/25/04
  Last Principal Payment Date      3/25/17   9/25/14  5/25/11   1/25/09  10/25/06   3/25/05   6/25/04
  Principal Payment Window            1        25        38       31        20         7         5
(Months)

CLASS A-5 (TO CALL)
-------------------------------------------------------------------------------------------------------
PPC                                  0%        50%      75%      100%      125%      150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)              14.74     12.24     8.91     6.74      4.90      2.83      2.03
  Modified Duration                 9.51      8.43      6.71     5.39      4.12      2.53      1.86
  First Principal Payment Date     3/25/17   9/25/14  5/25/11   1/25/09  10/25/06   3/25/05   6/25/04
  Last Principal Payment Date      3/25/17   9/25/14  5/25/11   3/25/09  10/25/07   6/25/05   7/25/04
  Principal Payment Window            1         1        1         3        13         4         2
(Months)

<PAGE>

                                    BOND SUMMARY (TO CALL)

CLASS A-6 (TO CALL)
-------------------------------------------------------------------------------------------------------
PPC                                  0%        50%      75%      100%      125%      150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)              10.40     7.21      6.55     5.84      5.06      4.24      2.43
  Modified Duration                 7.55      5.69      5.29     4.83      4.29      3.67      2.22
  First Principal Payment Date     7/25/05   7/25/05  7/25/05  10/25/05   2/25/06   6/25/05   7/25/04
  Last Principal Payment Date      3/25/17   9/25/14  5/25/11   3/25/09  10/25/07  11/25/06   4/25/05
  Principal Payment Window           141       111       71       42        21        18        10
(Months)

CLASS M-1 (TO CALL)
-------------------------------------------------------------------------------------------------------
PPC                                  0%        50%      75%      100%      125%      150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)              14.73     8.36      5.96     4.68      4.08      3.93      3.04
  Modified Duration                 9.58      6.30      4.81     3.94      3.52      3.41      2.71
  First Principal Payment Date     9/25/16   9/25/06  7/25/05   9/25/05  10/25/05   1/25/06   4/25/05
  Last Principal Payment Date      3/25/17   9/25/14  5/25/11   3/25/09  10/25/07  11/25/06   7/25/05
  Principal Payment Window            7        97        71       43        25        11         4
(Months)

CLASS M-2 (TO CALL)
-------------------------------------------------------------------------------------------------------
PPC                                  0%        50%      75%      100%      125%      150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)              14.73     8.36      5.96     4.64      3.97      3.67      3.08
  Modified Duration                 9.37      6.20      4.75     3.88      3.40      3.18      2.72
  First Principal Payment Date     9/25/16   9/25/06  7/25/05   7/25/05   8/25/05   9/25/05   7/25/05
  Last Principal Payment Date      3/25/17   9/25/14  5/25/11   3/25/09  10/25/07  11/25/06   7/25/05
  Principal Payment Window            7        97        71       45        27        15         1
(Months)

CLASS M-3 (TO CALL)
-------------------------------------------------------------------------------------------------------
PPC                                  0%        50%      75%      100%      125%      150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)              14.73     8.36      5.96     4.62      3.91      3.54      3.08
  Modified Duration                 9.25      6.14      4.72     3.84      3.34      3.07      2.71
  First Principal Payment Date     9/25/16   9/25/06  7/25/05   7/25/05   7/25/05   8/25/05   7/25/05
  Last Principal Payment Date      3/25/17   9/25/14  5/25/11   3/25/09  10/25/07  11/25/06   7/25/05
  Principal Payment Window            7        97        71       45        28        16         1
(Months)

CLASS B (TO CALL)
-------------------------------------------------------------------------------------------------------
PPC                                  0%        50%      75%      100%      125%      150%      200%
-------------------------------------------------------------------------------------------------------
  Average Life (Years)              14.72     7.26      5.12     4.02      3.47      3.22      2.96
  Modified Duration                 9.25      5.55      4.19     3.42      3.01      2.82      2.62
  First Principal Payment Date     9/25/16   9/25/06  7/25/05   7/25/05   7/25/05   7/25/05   5/25/05
  Last Principal Payment Date      3/25/17   4/25/14  12/25/10 12/25/08   8/25/07   8/25/06   7/25/05
  Principal Payment Window            7        92        66       42        26        14         3
(Months)

</TABLE>

<PAGE>

DISCLAIMER

By entering into a transaction with CSFB, you acknowledge that you have read and
understood  the  following  terms:  CSFB is  acting  solely  as an arm's  length
contractual  counterparty and not as your financial  adviser or fiduciary unless
it has agreed to so act in writing.  Before  entering into any  transaction  you
should  ensure that you fully  understand  its  potential  risks and rewards and
independently  determine that it is appropriate  for you given your  objectives,
experience,   financial   and   operational   resources,   and  other   relevant
circumstances.  You should consult with such advisers,  as you deem necessary to
assist you in making these determinations.  You should also understand that CSFB
or its affiliates may provide  banking,  credit and other financial  services to
any company or issuer of securities or financial instruments referred to herein,
underwrite,  make a market in,  have  positions  in, or  otherwise  buy and sell
securities  or financial  instruments  which may be  identical  or  economically
similar to any  transaction  entered  into with you.  If we make a market in any
security or financial instrument, it should not be assumed that we will continue
to do so. Any indicative terms provided to you are provided for your information
and do not  constitute an offer, a  solicitation  of an offer,  or any advice or
recommendation  to conclude any transaction  (whether on the indicative terms or
otherwise).  Any indicative price quotations,  disclosure  materials or analyses
provided to you have been prepared on assumptions  and  parameters  that reflect
good faith determinations by us or that have been expressly specified by you and
do not constitute  advice by us. The assumptions and parameters used are not the
only ones that might reasonably have been selected and therefore no guarantee is
given  as  to  the  accuracy,   completeness,  or  reasonableness  of  any  such
quotations,  disclosure or analyses.  No representation or warranty is made that
any indicative  performance or return  indicated will be achieved in the future.
None of the employees or agents of CSFB or its affiliates is authorized to amend
or  supplement  the terms of this  notice,  other  than in the form of a written
instrument,   duly  executed  by  an  appropriately   authorized  signatory  and
countersigned by you.

Attached is a term sheet  describing the structure,  collateral pool and certain
aspects  of the  Certificates.  The term  sheet  has been  prepared  by CSFB for
informational  purposes  only and is subject  to  modification  or  change.  The
information  and  assumptions  contained  therein  are  preliminary  and will be
superseded by a prospectus and prospectus supplement and by any other additional
information  subsequently  filed with the Securities and Exchange  Commission or
incorporated by reference in the Registration Statement.

Neither  Credit  Suisse  First  Boston  Corporation  nor  any of its  respective
affiliates makes any representation as to the accuracy or completeness of any of
the information set forth in the attached Series Term Sheet.

A Registration  Statement  (including a prospectus) relating to the Certificates
has  been  filed  with the  Securities  and  Exchange  Commission  and  declared
effective.  The final  Prospectus  and  Prospectus  Supplement  relating  to the
securities will be filed with the Securities and Exchange  Commission  after the
securities  have been priced and all of the terms and information are finalized.
This  communication  is not an offer to sell or the  solicitation of an offer to
buy nor shall  there be any sale of the  securities  in any state in which  such
offer,  solicitation  or  sale  would  be  unlawful  prior  to  registration  or
qualification  under the securities laws of any such state.  Interested  persons
are referred to the final  Prospectus  and  Prospectus  Supplement  to which the
securities  relate.  Any  investment  decision  should  be based  only  upon the
information  in the  final  Prospectus  and  Prospectus  Supplement  as of their
publication dates.

<PAGE>Prepared by R.R. Donnelley Financial -- Equity Compensation Plan

  
 EXHIBIT 10.3 
  
 STERIS CORPORATION 
 1994 Nonemployee Directors 
 Equity Compensation Plan 
  
 1.  Purpose.    The STERIS Corporation 1994 Nonemployee Directors Equity Compensation Plan is intended to promote the interests of STERIS Corporation and its shareholders by providing for the use of
Restricted Shares of the Company to pay part of the annual retainers paid to nonemployee Directors and by granting Stock Options to nonemployee Directors in order to further align the interests of nonemployee Directors more closely with the
interests of other shareholders of the Company, to provide a financial incentive that will help attract and retain the most qualified nonemployee Directors for the Company, and to encourage nonemployee Directors to hold proprietary interests in the
Company. Capitalized terms used in this Plan have the meanings ascribed to them in Section 20, the last section hereof. 
  
 2.  Administration.    The Plan shall be administered by the Committee. However, the Committee shall have no authority, discretion or power, subject to the terms of the Plan, (a) to determine whether a
particular Director shall be granted Restricted Shares or Stock Options under the Plan, the type, size, and terms of Restricted Shares or Stock Options to be granted to any Director, the time or times at which Restricted Shares and Stock Options
shall be exercisable or at which restrictions, conditions, and contingencies shall lapse, or the terms and provisions of the Instruments by which Restricted Shares and Stock Options shall be evidenced, or (b) to alter any other restrictions,
conditions, and contingencies specified in the Plan, except in the sense of administering the Plan. Subject to the foregoing limitations, the Committee, is authorized to interpret the Plan, to prescribe, amend, and rescind rules and regulations
relating to the Plan, and to provide for conditions and assurances deemed necessary or advisable to protect the interests of the Company and make all other determinations necessary or advisable for the administration of the Plan. The construction
and interpretation by the Committee of any provision of the Plan or any Instrument delivered pursuant to the Plan and any determination by the Committee pursuant to any provision of the Plan or any Instrument shall be final and conclusive. No member
or alternate member of the Committee shall be liable for any such action or determination made in good faith. The Committee may act only by a majority of its members. Any determination of the Committee may be made, without a meeting, by a writing or
writings signed by all of the members of the Committee. In addition, the Committee may authorize any one or more of their number or any officer of the Company to execute and deliver documents on behalf of the Committee and the Committee may delegate
to one or more employees, agents, or officers of the Company, or to one or more third party consultants, accountants, lawyers, or other advisors, such ministerial duties related to the operation of the Plan as it may deem appropriate. 

 
 3.  Eligibility.    No Director who is also employed by the Company shall participate in the
Plan. Each Director who is not employed by the Company shall qualify as a Participant and shall be eligible to receive Restricted Stock and grants of Stock Options on the terms and conditions set forth in the Plan. Each Participant shall, if
required by the Company, enter into an agreement or other Instrument with the Company, the form of such agreement or Instrument to be determined by the Company and which is consistent with the provisions of the Plan. In the event of any
inconsistency between the provisions of the Plan and any such Instrument entered into hereunder, the provisions of the Plan shall govern. 
  
 4.  Stock Subject to the Plan.    The aggregate number of Common Shares of the Company that may be issued and distributed to Participants in connection with Restricted Shares and Stock Options
granted under the Plan shall be 100,000 Common Shares which may be authorized and unissued Common Shares, treasury Common Shares, or Common Shares acquired on the open market specifically for distribution under the Plan, as the Board of Directors
may from time to time determine. The number of Common Shares remaining available for additional grants of Restricted Stock or Stock Options under the Plan at any particular time shall be reduced, upon the granting thereafter of any Restricted Stock
or Stock Option under the Plan, by the full 

 number of Common Shares of Restricted Stock or by the full number of Common Shares subject to the Stock Option. If any Restricted Stock is
forfeited for any reason or if any Stock Option for any reason expires or is terminated, in whole or in part, without the receipt by a Participant of Common Shares, the Restricted Shares so forfeited or the Common Shares subject to that part of the
Stock Option that has so expired or terminated, as the case may be, shall again be available for the future grant of Restricted Shares or Stock Options under the Plan. 
  
 5.  Restricted Shares as Partial Payment of Annual Retainer. 
  
 5.1  Automatic Grant of Restricted Shares.    The annual retainer payable to each nonemployee Director for services during an Annual Term shall be paid (a), as to the
first $7,000 of the annual retainer, by an automatic grant Restricted Shares (valued as provided in Section 5.2) and (b), as to the remainder of the annual retainer, in cash. The first automatic grants of Restricted Shares under the Plan shall be
made with respect to the Annual Term commencing with the 1994 Annual Meeting. Subsequent automatic grants of Restricted Shares under the Plan shall be made with respect to each succeeding Annual Term so long as the Plan remains in effect.

  
 5.2  Date of Grant, Number of Shares.    The automatic grant of Restricted Shares
for any Annual Term shall be made on the last business day of the month during which the Annual Meeting coinciding with the beginning of that Annual Term is held. The total number of Restricted Shares so granted shall be determined by dividing the
dollar amount of that portion of the retainer to be paid in Restricted Shares by the average of the per share closing price of Common Shares for the period of 10 consecutive trading days, the fifth of which is the trading day coinciding with the
date of the Annual Meeting, and rounding the quotient so determined down to the next whole number of Restricted Shares. No fractional shares shall be issued under the Plan. In lieu of issuing a fractional share to any Participant, the Company shall
pay the Participant cash equal to the value of the fractional share not issued. 
  
 5.3  Restrictions: Six
Month Minimum Holding Period, Periodic Vesting, Forfeiture. 
  
 (a)  A Participant may not
sell, transfer, otherwise dispose of, or pledge or otherwise hypothecate Restricted Shares until (i) at least six months have passed following the grant of those Restricted Shares and (ii) the Participant’s rights in the Restricted Shares have
vested in accordance with Section 5.3(b). 
  
 (b)  A Participant’s rights in
Restricted Shares granted with respect to any Annual Term shall vest in increments as follows, provided the Participant remains as a Director through the periods indicated: 2/7th of those Restricted Shares shall vest on the last day of the sixth
Full Calendar Month during the Annual Term and an additional 1/7 of those Restricted Shares shall vest on the last day of each of the seventh through eleventh Full Calendar Months during the Annual Term, except that if any Annual Term includes fewer
than eleven Full Calendar Months, any Restricted Shares granted to a Participant who remains as a Director through the last day of that Annual Term that have not previously vested on the foregoing schedule shall vest on that last day. 

 
 (c)  Except as otherwise provided in Section 7, if a Participant ceases to be a Director before all
Restricted Shares granted to the Participant with respect to any Annual Term have vested, any such Restricted Shares that have not vested shall be forfeited. 
  
 6.  Stock Options. 
  
 6.1  Automatic Annual
Grant.    On the last business day of the month during which any Annual Meeting is held, each Participant shall be granted, as additional consideration for services to be rendered by the Participant during the Annual Term
commencing with that Annual Meeting, a Stock Option with respect to 2,500 Common Shares. 
  
 6.2  Time of
and Conditions on Exercise.    A Stock Option granted under the Plan may be exercised not earlier than six months nor later than ten years after the date of grant of the Stock Option. Stock Options may be exercised only during
the continuance of a Participant’s service as 
 

 2 

 a Director or within three months of termination of such service, except as provided in Section 7. During a Participant’s lifetime, only
the Participant (or in the case of incapacity of a Participant, the Participant’s attorney in fact or legal guardian) may exercise a Stock Option. A Participant may exercise a Stock Option from time to time, in whole or in part, up to the total
number of Common Shares with respect to which the Stock Option is then exercisable, except that no fraction of a Common Share may be purchased upon the exercise of any Stock Option. 
  
 6.3  Exercise.    A Participant electing to exercise a Stock Option shall deliver to the Company (a) the Exercise Price payable in accordance
with Section 6.4 and (b) written notice of the election that states the number of whole Common Shares with respect to which the Participant is exercising the Stock Option. 
  
 6.4  Payment For Common Shares.    Upon exercise of a Stock Option by a Participant, the Exercise Price shall be payable by the Participant,
at the election of the Participant, in cash, by delivery by the Participant (with the written notice of election to exercise) of irrevocable instructions to a broker registered under the 1934 Act to promptly deliver to the Company the amount of sale
or loan proceeds to pay the Exercise Price, or by such combination of cash and such instructions as the Participant may elect. 
  
 6.5  Nontransferability.    Stock Options may not be sold, assigned, pledged, hypothecated, transferred, or otherwise disposed of during the lifetime of the Participant, either voluntarily or
involuntarily, other than by will or by the laws of descent and distribution or pursuant to a qualified domestic relations order as defined in Section 414(p)(1)(B) of the Internal Revenue Code of 1986, as amended, that satisfies the requirements of
Section 414(p)(1)(A) of the Internal Revenue Code of 1986, as amended. A Participant granted a Stock Option shall have no rights as a shareholder with respect to any shares covered by the Stock Option until the date the share certificate is issued
evidencing ownership of such shares. 
  
 7.  Death of a Participant.    Upon the death
of a Participant while the Participant is serving as a Director, the Participant’s executor or administrator or the person or persons to whom the Participant’s rights under a Stock Option are transferred by will or the laws of descent and
distribution shall have the right to exercise, from time to time during the period ending one year after the date of the Participant’s death, but not later than the relevant Expiration Date, any Stock Options that were outstanding on the date
of the Participant’s death, if and to the same extent as those Stock Options were exercisable by the Participant on the date of the Participant’s death. 
  
 8.  Adjustment Upon Changes in Common Shares.    In the event of any stock dividend, stock split, or share combination of the Common Shares or
any reclassification, recapitalization, merger, consolidation, other form of business combination, liquidation, or dissolution involving the Company or any spin-off or other distribution to shareholders of the Company (other than normal cash
dividends), (a) the Committee shall make appropriate adjustments to the maximum number of Common Shares that may be issued under the Plan pursuant to Section 4, and (b) the Committee shall adjust the number and kind of shares subject to, the price
per share under, and the terms and conditions of each then outstanding Stock Option to the extent necessary and in such manner that the benefits of Participants under all then outstanding Stock Options shall be maintained substantially as before the
occurrence of such event. Any adjustment so made by the Committee shall be conclusive and binding for all purposes of the Plan as of such date as the Committee may determine. 
  
 9.  Purchase for Investment.    Each Participant acquiring Common Shares pursuant to a Stock Option may be required by the Company to furnish
a representation that he or she is acquiring the Common Shares so acquired as an investment and not with a view to distribution thereof if the Company, in its sole discretion, determines that such representation is required to insure that a resale
or other disposition of the Common Shares would not involve a violation of the Securities Act of 1933, as amended, or of applicable blue sky laws. Any investment representation so furnished shall no longer be applicable at any such time such
representation is no longer necessary for such purposes. 
 

 3 

  
 10.  Holding Periods.    No Participant shall sell
or exercise, as the case may be, any equity security or derivative security, in each case as defined in the 1934 Act or the rules and regulations promulgated thereunder, acquired pursuant to Restricted Shares or Stock Options granted under the Plan,
before the earliest date on which the sale or exercise is eligible for the Rule 16b-3 Exemption. If any provision of the Plan (including, without limitation, this Section 10) must be modified or becomes unnecessary to comply with the requirements of
Rule 16b-3, the Committee may waive such provision and/or amend the Plan to add to or modify the provisions hereof accordingly. 
  
 11.  Legal Requirements.    No Restricted Shares or Stock Options shall be granted and the Company shall have no obligation to make any payment under the Plan, whether in Common Shares, cash, or any
combination thereof, except in compliance with all applicable Federal and state laws and regulations, including, without limitation, the Internal Revenue Code of 1986, as amended, and Federal and state securities laws. 
  
 12.  Duration and Termination of the Plan.    The Plan shall become effective and shall be deemed to have
been adopted on the date on which it is approved by the shareholders of the Company and shall remain in effect thereafter until terminated by action of the Board of Directors. No termination of the Plan shall adversely affect the rights of any
Participant with respect to any Restricted Shares or Stock Options granted before the effective date of the termination. 
  
 13.  Amendments.    The Board of Directors, or a duly authorized committee thereof, may alter or amend the Plan prior to its termination in any manner the Board of Directors, or such duly authorized
committee, may deem to be in the best interests of the Company and its shareholders, except that (a) the Plan may not be so altered or amended more frequently than once every six months, and (b) no amendment may be made without shareholder approval
if shareholder approval is required under Rule 16b-3 to qualify for the Rule 16b-3 Exemption, is required by any applicable securities law or tax law, or is required by the rules of the registered national securities association through whose
inter-dealer quotation system the Common Shares are quoted. 
  
 14.  Plan
Noncontractual.    Nothing herein contained shall be construed as a commitment to or agreement with any Participant serving as a Director to continue such person’s service as a Director, and nothing herein contained shall be
construed as a commitment or agreement on the part of the Company to continue the annual rate of retainer of any such person for any period. All Participants shall remain subject to termination to the same extent as if the Plan had never been put
into effect. 
  
 15.  Interest of Participants.    Any obligation of the Company under
the Plan to make any payment at any future date merely constitutes the unsecured promise of the Company to make such payment from its general assets in accordance with the Plan, and no Participant shall have any interest in, or lien or prior claim
upon, any property of the Company by reason of that obligation. 
  
 16.  Claims of Other
Persons.    The provisions of the Plan shall in no event be construed as giving any person, firm, or corporation any legal or equitable right against the Company, its officers, employees, agents, or directors, except any such
rights as are specifically provided for in the Plan or are hereafter created in accordance with the terms and provisions of the Plan. 
  
 17.  Absence of Liability.    No Director, member of the Committee or of any other committee of the Board of Directors, or any officer or employee of the Company shall be liable for any act or
action under the Plan, whether of commission or omission, taken by any other member, or by any officer, agent, or employee, or, except in circumstances involving his bad faith or willful misconduct, for anything done or omitted to be done by himself
or herself. 
 

 4 

  
 18.  Severability.    The invalidity or
unenforceability of any particular provision of the Plan shall not affect any other provision hereof, and the Plan shall be construed in all respects as if such invalid or unenforceable provision were omitted herefrom. 
  
 19.  Governing Law.    The provisions of the Plan shall be governed and construed in accordance with the
laws of the State of Ohio. 
  
 20.  Definitions. 
  
 20.1  1934 Act.    The term “1934 Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 20.2  Annual Meeting.    The term “Annual Meeting” shall mean an Annual Meeting of Shareholders of
the Company. 
  
 20.3  Annual Term.    The term “Annual Term” shall mean the
period commencing at the time of election of Directors at one Annual Meeting and continuing until the time of election of Directors at the immediately succeeding Annual Meeting. 
  
 20.4  Committee.    The term “Committee” shall mean a committee appointed by the Board of Directors of the Company to administer the
Plan. The Committee shall be composed of not less than two Directors. The Board of Directors may also appoint one or more directors as alternate members of the Committee. No officer or employee of the Company shall be a member or alternate member of
the Committee. The Committee shall at all times be so comprised as to satisfy the disinterested administration standard contained in Rule 16b-3, if required to qualify for the Rule 16b-3 Exemption. 
  
 20.5  Common Shares.    The term “Common Shares” shall mean common shares of the Company without
par value. 
  
 20.6  Company.    The term “Company” shall mean STERIS
Corporation and its successors, including the surviving or resulting corporation of any merger of STERIS Corporation with or into, or any consolidation of STERIS Corporation with, any other corporation or corporations. 
  
 20.7  Director.    The term “Director” shall mean an individual who has been duly elected and is
serving as a member of the Company’s Board of Directors. 
  
 20.8  Participant.    The term “Participant” shall mean any director of the Company who is neither an officer nor employee of the Company. 
  

20.9  Exercise Price.    The term “Exercise Price” with respect to any Stock Option shall mean the per share closing price of
Common Shares on the date of the grant of that Stock Option. 
  
 20.10  Expiration
Date.    The term “Expiration Date” with respect to any Stock Option shall mean the tenth anniversary of the date of grant of the Stock Option. 
  
 20.11  Full Calendar Month.    The term “Full Calendar Month” shall mean any month-long period beginning on the first day and ending
on the last day of a calendar month. 
  
 20.12  Instrument.    The term
“Instrument” shall mean a written instrument evidencing a grant of Restricted Shares or of a Stock Option in such form and with such provisions as the Committee may prescribe, including, without limitation, an agreement to be executed by
the Participant and the Company, a certificate issued by the Company, or a letter executed by the Committee or its designee. Each Instrument shall provide that acceptance of the Instrument by a Participant constitutes agreement to the terms of the
grant evidenced thereby. 
 

 5 

  
 20.13  Plan.    The term “Plan” shall
mean this STERIS Corporation 1994 Nonemployee Directors Equity Compensation Plan as from time to time hereafter amended in accordance with Section 15. 
  
 20.14  Restricted Shares.    The term “Restricted Shares” shall mean Common Shares granted to a Participant in accordance with Section 5. 

 
 20.15  Rule 16b-3.    The term “Rule 16b-3” shall mean Rule 16b-3 or any successor
provision under the 1934 Act. 
  
 20.16  Rule 16b-3 Exemption.    The term “Rule
16b-3 Exemption” shall mean the exemption from Section 16(b) of the 1934 Act that is available under Rule 16b-3. 
  
 20.17  Stock Option.    The term “Stock Option,” shall mean a grant entitling the holder thereof to purchase a specified number of Common Shares at a specified price during a specified period
of time. 
 

 6

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