Document:

EXECUTION COPY

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                          Home Equity Loan Asset Backed
                                  Certificates
                                  Series 2003-1

                         POOLING AND SERVICING AGREEMENT

                                      among

                  THE CIT GROUP SECURITIZATION CORPORATION III,
                                  as Depositor,

                      THE CIT GROUP/CONSUMER FINANCE, INC.,
                         as Seller and Master Servicer,

                            CFHE FUNDING COMPANY LLC,
                                as Conduit Seller

                                       and

                              THE BANK OF NEW YORK,
              not in its individual capacity but solely as Trustee

                            Dated as of March 1, 2003

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

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

ARTICLE I DEFINITIONS..........................................................2

  SECTION 1.01.  General.......................................................2
  SECTION 1.02.  Specific Terms................................................2

ARTICLE II ESTABLISHMENT OF THE TRUST; TRANSFER OF MORTGAGE LOANS.............30

  SECTION 2.01.  Establishment of the Trust...................................30
  SECTION 2.02.  Conveyance of the Initial Mortgage Loans.....................31
  SECTION 2.03.  Conveyance of the Subsequent Mortgage Loans..................31
  SECTION 2.04.  [Reserved]...................................................33
  SECTION 2.05.  Appointment of REMIC Administrators..........................33
  SECTION 2.06.  Acceptance by Trustee........................................34
  SECTION 2.07.  Designation of Interests in REMICs...........................34
  SECTION 2.08.  Issuance of the R-1 Residual Interest........................39
  SECTION 2.09.  Conveyance of REMIC I Regular Interests; Acceptance
                 of REMIC II by the Trustee...................................39
  SECTION 2.10.  Conveyance of REMIC II Regular Interests; Acceptance of
                 REMIC III by the Trustee.....................................39
  SECTION 2.11.  Conveyance of the REMIC III Regular Interests;
                 Acceptance of the Master REMIC by the Trustee................39
  SECTION 2.12.  Miscellaneous REMIC Provisions...............................39

ARTICLE III REPRESENTATIONS AND WARRANTIES....................................40

  SECTION 3.01.  Representations and Warranties Regarding CIT
                 Consumer Finance.............................................40
  SECTION 3.02.  Representations and Warranties Regarding
                 Each Mortgage Loan...........................................42
  SECTION 3.03.  Representations and Warranties Regarding the
                 Mortgage Loans in the Aggregate..............................46
  SECTION 3.04.  Representations and Warranties Regarding the Files...........47
  SECTION 3.05.  Repurchase of Mortgage Loans or Substitution of Mortgage
                 Loans for Breach of Representations and Warranties...........47
  SECTION 3.06.  Conditions of Closing for the Subsequent Mortgage Loans......49

ARTICLE IV DELIVERY OF MORTGAGE DOCUMENTS; CUSTODY OF MORTGAGE LOANS;
           RECORDATION OF MORTGAGES...........................................51

  SECTION 4.01.  Delivery of Mortgage Documents; Custody of Mortgage Loans....51
  SECTION 4.02.  Recordation of Mortgages.....................................54
  SECTION 4.03.  Review of Mortgage Documents.................................55

                                      -i-

<PAGE>

                                Table of Contents
                                   (continued)

                                                                            Page
                                                                            ----

ARTICLE V SERVICING OF MORTGAGE LOANS.........................................57

  SECTION 5.01.  Responsibility for Mortgage Loan Administration..............57
  SECTION 5.02.  Standard of Care.............................................57
  SECTION 5.03.  Records......................................................57
  SECTION 5.04.  Inspection; Computer Tape....................................58
  SECTION 5.05.  Certificate Account..........................................58
  SECTION 5.06.  Enforcement..................................................62
  SECTION 5.07.  Trustee to Cooperate.........................................63
  SECTION 5.08.  Costs and Expenses...........................................64
  SECTION 5.09.  Maintenance of Insurance.....................................64
  SECTION 5.10.  REMIC Compliance.............................................66
  SECTION 5.11.  Sub-servicer.................................................68
  SECTION 5.12.  Calculation of One-Month LIBOR...............................69
  SECTION 5.13.  Applied Realized Loss Amounts................................70
  SECTION 5.14.  [Reserved]...................................................70
  SECTION 5.15.  Release of Collateral........................................70

ARTICLE VI REPORTS............................................................70

  SECTION 6.01.  Monthly Reports to the Trustee...............................70
  SECTION 6.02.  Certificate of Servicing Officer.............................72
  SECTION 6.03.  Other Data...................................................72
  SECTION 6.04.  Annual Report of Accountants.................................73
  SECTION 6.05.  Statements to Certificateholders.............................73
  SECTION 6.06.  Annual Statement as to Compliance............................74

ARTICLE VII SERVICE TRANSFER..................................................74

  SECTION 7.01.  Event of Termination.........................................74
  SECTION 7.02.  Transfer.....................................................75
  SECTION 7.03.  Trustee to Act; Appointment of Successor.....................76
  SECTION 7.04.  Notification to Certificateholders and to
                 Rating Agencies..............................................77
  SECTION 7.05.  Effect of Transfer...........................................77
  SECTION 7.06.  Transfer of Accounts.........................................78

ARTICLE VIII DISTRIBUTIONS AND WITHDRAWALS FROM CERTIFICATE ACCOUNT...........78

  SECTION 8.01.  Monthly Distributions........................................78
  SECTION 8.02.  Permitted Withdrawals from the Certificate Account...........82
  SECTION 8.03.  Repurchase Option............................................83
  SECTION 8.04.  Compensating Interest and Monthly Advances by the
                 Master Servicer..............................................84
  SECTION 8.05.  Supplemental Interest Reserve Fund...........................85

                                      -ii-

<PAGE>

                                Table of Contents
                                   (continued)

                                                                            Page
                                                                            ----

ARTICLE IX THE CERTIFICATES...................................................86

  SECTION 9.01.  The Certificates.............................................86
  SECTION 9.02.  Registration of Transfer and Exchange of Certificates........86
  SECTION 9.03.  No Charge; Disposition of Void Certificates..................92
  SECTION 9.04.  Mutilated, Destroyed, Lost or Stolen Certificates............92
  SECTION 9.05.  Persons Deemed Holders.......................................92
  SECTION 9.06.  Access to List of Certificateholders' Names and Addresses....93
  SECTION 9.07.  Authenticating Agents........................................93

ARTICLE X INDEMNITIES.........................................................93

  SECTION 10.01. Liabilities to Mortgagors....................................93
  SECTION 10.02. Tax Indemnification..........................................94
  SECTION 10.03. Master Servicer's Indemnities................................94
  SECTION 10.04. Operation of Indemnities.....................................94
  SECTION 10.05. CIT Consumer Finance Indemnification.........................95

ARTICLE XI THE TRUSTEE........................................................95

  SECTION 11.01. Duties of Trustee............................................95
  SECTION 11.02. Certain Matters Affecting the Trustee........................96
  SECTION 11.03. Trustee Not Liable for Certificates or Mortgage Loans........97
  SECTION 11.04. Rights of Certificateholders to Direct Trustee and to
                 Waive Events of Termination..................................97
  SECTION 11.05. Master Servicer to Pay Trustee's Fees and Expenses...........98
  SECTION 11.06. Eligibility Requirements for Trustee.........................99
  SECTION 11.07. Resignation or Removal of Trustee............................99
  SECTION 11.08. Successor Trustee...........................................100
  SECTION 11.09. Merger or Consolidation of Trustee..........................100
  SECTION 11.10. [Reserved]..................................................100
  SECTION 11.11. Separate Trustees and Co-Trustees...........................100
  SECTION 11.12. Trustee May Own Certificates................................101
  SECTION 11.13. Agents of Trustee...........................................102

ARTICLE XII MISCELLANEOUS....................................................102

  SECTION 12.01. Master Servicer Not To Resign...............................102
  SECTION 12.02. Maintenance of Office or Agency.............................102
  SECTION 12.03. Termination.................................................102
  SECTION 12.04. Acts of Certificateholders..................................104
  SECTION 12.05. Calculations................................................105
  SECTION 12.06. Assignment or Delegation by the Master Servicer; Merger
                 or Consolidation of the Depositor, CIT Consumer Finance
                 or the Master Servicer......................................105

                                     -iii-

<PAGE>

                                Table of Contents
                                   (continued)

                                                                            Page
                                                                            ----

  SECTION 12.07. Amendment...................................................106
  SECTION 12.08. Contribution of Assets......................................107
  SECTION 12.09. Notices.....................................................108
  SECTION 12.10. Merger and Integration......................................109
  SECTION 12.11. Reliance on Credit..........................................109
  SECTION 12.12. No Bankruptcy Petition......................................109
  SECTION 12.13. Headings....................................................110
  SECTION 12.14. Governing Law...............................................110
  SECTION 12.15. Counterparts................................................110

ARTICLE XIII THE DEPOSITOR...................................................110

  SECTION 13.01. Representations of the Depositor............................110
  SECTION 13.02. Merger or Consolidation of the Depositor....................111
  SECTION 13.03. Limitation on Liability of the Depositor and Others.........111
  SECTION 13.04. The Depositor May Own Securities............................112

                                      -iv-

<PAGE>

                     E X H I B I T S

EXHIBIT A-1  -  FORM OF CLASS A-1 CERTIFICATE
EXHIBIT A-2  -  FORM OF CLASS A-2 CERTIFICATE
EXHIBIT A-3  -  FORM OF CLASS A-3 CERTIFICATE
EXHIBIT A-4  -  FORM OF CLASS A-4 CERTIFICATE
EXHIBIT A-5  -  FORM OF CLASS A-5 CERTIFICATE
EXHIBIT A-6  -  FORM OF CLASS A-6 CERTIFICATE
EXHIBIT A-7  -  FORM OF CLASS M-1 CERTIFICATE
EXHIBIT A-8  -  FORM OF CLASS M-2 CERTIFICATE
EXHIBIT A-9  -  FORM OF CLASS B CERTIFICATE
EXHIBIT A-10 -  FORM OF CLASS A-IO CERTIFICATE
EXHIBIT B    -  FORM OF CLASS X-IO CERTIFICATE
EXHIBIT C    -  FORM OF CLASS R CERTIFICATE
EXHIBIT D    -  LIST OF INITIAL MORTGAGE LOANS
EXHIBIT E    -  SCHEDULES OF MORTGAGE LOANS BY SELLER
EXHIBIT F    -  FORM OF DELAYED DELIVERY CERTIFICATION
EXHIBIT G    -  INTENTIONALLY OMITTED
EXHIBIT H    -  FORM OF TRANSFER AFFIDAVIT
EXHIBIT I    -  FORMS OF PRIVATE CERTIFICATE TRANSFEREE LETTER
EXHIBIT J    -  FORM OF TRANSFEROR LETTER
EXHIBIT K    -  FORM OF OFFICER'S CERTIFICATE RELATING TO QUALIFIED SUBSTITUTE
                MORTGAGE LOANS
EXHIBIT L    -  FORM OF SUBSEQUENT PURCHASE AGREEMENT
EXHIBIT M    -  FORM OF SUBSEQUENT TRANSFER AGREEMENT
EXHIBIT N       FORM OF ADDITION NOTICE

                                      -i-

<PAGE>

      POOLING AND SERVICING AGREEMENT, relating to CIT HOME EQUITY LOAN TRUST
2003-1, dated as of March 1, 2003 by and among THE CIT GROUP SECURITIZATION
CORPORATION III, a Delaware corporation, in its capacity as the depositor (the
"Depositor"), THE CIT GROUP/CONSUMER FINANCE, INC., a Delaware corporation ("CIT
Consumer Finance") in its capacities as the seller (in such capacity, the
"Seller") and as the master servicer (in such capacity, the "Master Servicer"),
CFHE FUNDING COMPANY LLC, a Delaware limited liability company (the "Conduit
Seller" and together with Seller, the "Sellers") and THE BANK OF NEW YORK, a New
York banking corporation, in its capacity as the trustee (the "Trustee").

      WHEREAS, the Seller wishes to establish a trust and one or more subtrusts
and provide for the allocation and sale of the beneficial interests therein and
the maintenance and distribution of the trust estate;

      WHEREAS, the Seller and the Conduit Seller wish to sell to the Depositor,
the Depositor wishes to purchase from the Seller and the Conduit Seller and to
sell to the Trust, and the Trust wishes to purchase, the Mortgage Loans;

      WHEREAS, the Master Servicer has agreed to service the Mortgage Loans,
which constitute the principal assets of the trust estate;

      WHEREAS, all things necessary to make the Certificates, when executed and
authenticated by the Trustee, valid instruments, and to make this Agreement a
valid agreement, in accordance with their and its terms, have been done; and

      WHEREAS, The Bank of New York is willing to serve in the capacity of
Trustee hereunder.

      NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein contained, the Depositor, the Seller, the Conduit Seller, the Master
Servicer, and the Trustee hereby agree as follows:

<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

      SECTION 1.01. General.

      For the purpose of this Agreement, except as otherwise expressly provided
or unless the context otherwise requires, the terms defined in this Article
include the plural as well as the singular, the words "herein," "hereof" and
"hereunder" and other words of similar import refer to this Agreement as a whole
and not to any particular Article, Section or other subdivision, and Section
references refer to Sections of this Agreement.

      SECTION 1.02. Specific Terms.

      "Affiliate" of any specified Person means any other Person controlling or
controlled by or under common control with such specified Person. For the
purposes of this definition, "control" when used with respect to any specified
Person means the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise; and the terms "controlling" or "controlled" have meanings
correlative to the foregoing.

      "Aggregate Certificate Principal Balance" means, as of any date of
determination, the sum of the Certificate Principal Balance of all Classes of
the Offered Certificates (other than the Class A-IO Certificates).

      "Agreement" means this Pooling and Servicing Agreement.

      "Applicants" has the meaning assigned in Section 9.06.

      "Applied Realized Loss Amount" means the amount, on any Distribution Date
after taking into account all Realized Losses experienced during the prior Due
Period and after taking into account the distribution of principal with respect
to the Certificates (other than the Class A-IO, Class X-IO and Class R
Certificates) on such Distribution Date, by which the Aggregate Certificate
Principal Balance after giving effect to all distributions on such Distribution
Date exceeds the aggregate Principal Balance of the Mortgage Loans as of the end
of the related Due Period.

      "Authenticating Agent" means any authenticating agent appointed pursuant
to Section 9.07.

      "Balloon Loan" means a Mortgage Loan the terms of which require payment of
a substantial portion of the original principal balance of such Mortgage Loan to
be due at or prior to maturity.

      "Base Prospectus" means the Depositor's Prospectus dated January 3, 2003
constituting part of its Registration Statement on Form S-3 (Registration No.
333-64529) under the Securities Act.

                                      -2-
<PAGE>

      "Basic Principal Amount" means, with respect to the Mortgage Loans and
each Distribution Date, the sum of (without duplication):

            (a) the principal portion of all scheduled monthly payments on the
      Mortgage Loans actually received by the Master Servicer with respect to
      the related Due Period and any Prepayments on the Mortgage Loans made by
      the Mortgagors of Mortgage Loans and actually received by the Master
      Servicer with respect to the related Due Period;

            (b) the outstanding principal balance of each Mortgage Loan that was
      purchased by the Master Servicer or repurchased by the Seller with respect
      to the related Due Period;

            (c) any Substitution Adjustment relating to principal delivered by
      the Seller with respect to the related Due Period in connection with a
      substitution of a Mortgage Loan;

            (d) all Liquidation Proceeds actually collected by or on behalf of
      the Master Servicer with respect to the Mortgage Loans with respect to the
      related Due Period (to the extent the Liquidation Proceeds relate to
      principal);

            (e) the principal portion of the proceeds received by the Trustee
      upon termination of the Trust; and

            (f) any amounts transferred from the Pre-Funding Account to the
      Certificate Account pursuant to Section 5.05A(d) upon the end of the
      Funding Period.

      "Book-Entry Certificate" means any Offered Certificate registered in the
name of the Depository or its nominee, ownership of which is reflected on the
books of the Depository or on the books of a person maintaining an account with
such Depository (directly or as an indirect participant in accordance with the
rules of such Depository). Notwithstanding the foregoing, no Class R Certificate
shall be a "Book-Entry Certificate" regardless of whether it is an Offered
Certificate.

      "Business Day" means any day other than (a) a Saturday or a Sunday or (b)
another day on which banking institutions or trust companies in the State of
Oklahoma, the State of New Jersey or the State of New York are authorized by
law, regulation or executive order to be closed.

      "Certificate" means a Home Equity Loan Asset Backed Certificate Series
2003-1 executed and delivered by the Trustee substantially in the form of
Exhibits A-1 through A-10, Exhibit B and Exhibit C.

      "Certificate Account" means a separate trust account maintained in the
name of the Trust as an Eligible Account.

      "Certificate Principal Balance" means, as of the Closing Date as to each
of the following Classes of Offered Certificates, the principal balances
thereof, as follows:

                                      -3-
<PAGE>

                    Class A-1 Certificates - $294,000,000

                    Class A-2 Certificates - $213,000,000

                    Class A-3 Certificates -  $58,000,000

                    Class A-4 Certificates - $114,000,000

                    Class A-5 Certificates -  $33,050,000

                    Class A-6 Certificates -  $94,000,000

                    Class M-1 Certificates -  $54,050,000

                    Class M-2 Certificates -  $42,300,000

                    Class B Certificates   -  $37,600,000

      As of any time of determination after the Closing Date, with respect to a
Class of Offered Certificates (other than the Class A-IO Certificates), the
Certificate Principal Balance of such Class as of the Closing Date less the
aggregate of all amounts actually distributed to such Class in reduction of such
Class's Certificate Principal Balance pursuant to Section 7.03 hereof on all
prior Distribution Dates and, in the case of any Class of Subordinate
Certificates, reduced by any Applied Realized Loss Amounts allocated to such
Class on prior Distribution Dates. (The Class A-IO Certificates, the Class X-IO
Certificates and the Class R Certificates do not have a Certificate Principal
Balance.)

      "Certificate Rate" means any of the Class A-IO Certificate Rate, the Class
A-1 Certificate Rate, the Class A-2 Certificate Rate, the Class A-3 Certificate
Rate, the Class A-4 Certificate Rate, the Class A-5 Certificate Rate, the Class
A-6 Certificate Rate, the Class M-1 Certificate Rate, the Class M-2 Certificate
Rate, the Class B Certificate Rate or the Class X-IO Certificate Rate.

      "Certificate Register" means the register maintained pursuant to Section
9.02.

      "Certificate Registrar" means the registrar appointed pursuant to Section
9.02.

      "Certificateholder" or "Holder" means the person who is the beneficial
owner of a Book-Entry Certificate or the person in whose name a Certificate is
registered on the Certificate Register, except that, solely for the purposes of
giving any consent, waiver, request or demand pursuant to this Agreement, any
Certificate registered in the name of the Seller, the Master Servicer or any
Affiliate of the Seller or the Master Servicer shall be deemed not to be
outstanding, and the Percentage Interest evidenced thereby shall not be taken
into account in determining whether the requisite Percentage Interest necessary
to effect any such consent, request, waiver or demand has been obtained unless
all the Certificates are held by such Persons; provided, however, that in
determining whether the Trustee shall be protected in relying upon any such
consent, waiver, request or demand only Certificates which the Trustee knows to
be so owned shall be so disregarded.

      "CIT" means CIT Group Inc., a Delaware corporation.

                                      -4-
<PAGE>

      "CIT Consumer Finance" means The CIT Group/Consumer Finance, Inc., a
Delaware corporation, and its successors in interest as permitted hereunder.

      "CITSF" means The CIT Group/Sales Financing Inc., and its successors in
interest as permitted hereunder.

      "Class" means either any class of the Offered Certificates or the Class
X-IO Certificates or the Class R Certificates, or, collectively, all of the
Lower Tier Interests, as the case may be, bearing the same alphabetical and, if
applicable, numerical class designation.

      "Class A-IO Certificate" means any one of the Certificates designated on
the face thereof as a Class A-IO Certificate, substantially in the form annexed
hereto as Exhibit A-IO authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and each evidencing beneficial
ownership of an interest designated as a "regular interest" in the Master REMIC
created hereunder for purposes of the REMIC Provisions.

      "Class A-IO Certificate Rate" means, with respect to any Distribution Date
and the Class A-IO Certificates, 5.00% per annum.

      "Class A-1 Certificate" means any one of the Certificates designated on
the face thereof as a Class A-1 Certificate, substantially in the form annexed
hereto as Exhibit A-1 authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and each evidencing beneficial
ownership of an interest designated as a "regular interest" in the Master REMIC.

      "Class A-1 Certificate Rate" means, with respect to any Distribution Date
and the Class A-1 Certificates, the lesser of (A) the sum of (1) One-Month LIBOR
and (2) 0.090% per annum and (B) the Net WAC Cap for the Distribution Date.

      "Class A-2 Certificate" means any one of the Certificates designated on
the face thereof as a Class A-2 Certificate, substantially in the form annexed
hereto as Exhibit A-2 authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and each evidencing beneficial
ownership of an interest designated as a "regular interest" in the Master REMIC.

      "Class A-2 Certificate Rate" means, with respect to any Distribution Date
and the Class A-2 Certificates, 2.350% per annum.

      "Class A-3 Certificate" means any one of the Certificates designated on
the face thereof as a Class A-3 Certificate, substantially in the form annexed
hereto as Exhibit A-3 authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and each evidencing beneficial
ownership of an interest designated as a "regular interest" in the Master REMIC.

      "Class A-3 Certificate Rate" means, with respect to any Distribution Date
and the Class A-3 Certificates, 2.790% per annum.

                                      -5-
<PAGE>

      "Class A-4 Certificate" means any one of the Certificates designated on
the face thereof as a Class A-4 Certificate, substantially in the form annexed
hereto as Exhibit A-4 authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and each evidencing beneficial
ownership of an interest designated as a "regular interest" in the Master REMIC.

      "Class A-4 Certificate Rate" means, with respect to any Distribution Date
and the Class A-4 Certificates, the lesser of (A) 3.930% per annum (or 4.430%
per annum for each Interest Period occurring after the Master Servicer first
fails to exercise its clean-up call option) and (B) the Net WAC Cap for the
Distribution Date.

      "Class A-5 Certificate" means any one of the Certificates designated on
the face thereof as a Class A-5 Certificate, substantially in the form annexed
hereto as Exhibit A-5 authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and each evidencing beneficial
ownership of an interest designated as a "regular interest" in the Master REMIC.

      "Class A-5 Certificate Rate" means, with respect to any Distribution Date
and the Class A-5 Certificates, the lesser of (A) 4.980% per annum (or 5.480%
per annum for each Interest Period occurring after the Master Servicer first
fails to exercise its clean-up call option) and (B) the Net WAC Cap for the
Distribution Date.

      "Class A-6 Calculation Percentage" means, with respect to any Distribution
Date, the fraction, expressed as a percentage, the numerator of which is the
Certificate Principal Balance of the Class A-6 Certificates and the denominator
of which is the total of the Certificate Principal Balances of the Senior
Certificates (other than the Class A-IO Certificates), in each case before
giving effect to distributions of principal on that Distribution Date.

      "Class A-6 Certificate" means any one of the Certificates designated on
the face thereof as a Class A-6 Certificate, substantially in the form annexed
hereto as Exhibit A-6 authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and each evidencing beneficial
ownership of an interest designated as a "regular interest" in the Master REMIC.

      "Class A-6 Certificate Rate" means, with respect to any Distribution Date
and the Class A-6 Certificates, the lesser of (A) 4.060% per annum (or 4.560%
per annum for each Interest Period occurring after the Master Servicer first
fails to exercise its clean-up call option) and (B) the Net WAC Cap for the
Distribution Date.

      "Class A-6 Lockout Distribution Amount" means, with respect to any
Distribution Date, an amount equal to the product of (1) the applicable Class
A-6 Lockout Percentage for the Distribution Date, (2) the Class A-6 Calculation
Percentage and (3) the Senior Principal Distribution Amount for such
Distribution Date. In no event shall the Class A-6 Lockout Distribution Amount
exceed the outstanding Certificate Principal Balance of the Class A-6
Certificates.

                                      -6-
<PAGE>

      "Class A-6 Lockout Percentage" for each Distribution Date will be as
follows:

         Distribution Date                                 Lockout Percentage
         -----------------                                 ------------------
         April 2003 through March 2006                              0%

         April 2006 through March 2008                             45%

         April 2008 through March 2009                             80%

         April 2009 through March 2010                            100%

         April 2010 and thereafter                                300%

      "Class B Certificate" means any one of the Certificates designated on the
face thereof as a Class B Certificate, substantially in the form annexed hereto
as Exhibit A-9 authenticated and delivered by the Trustee, representing the
right to distributions as set forth herein and each evidencing beneficial
ownership of an interest designated as a "regular interest" in the Master REMIC.

      "Class B Certificate Rate" means with respect to any Distribution Date and
the Class B Certificates, the lesser of (A) 5.500% per annum (or 6.000% per
annum for each Interest Period occurring after the Master Servicer first fails
to exercise its clean-up call option) and (B) the Net WAC Cap for the
Distribution Date.

      "Class B Principal Distribution Amount" means, with respect to any
Distribution Date on or after the Stepdown Date and so long as a Trigger Event
is not in effect, an amount equal to the excess of (1) the sum of (A) the
aggregate Certificate Principal Balance of the Senior Certificates (other than
the Class A-IO Certificates) (after giving effect to the distribution of the
Senior Principal Distribution Amount on such Distribution Date), (B) the
Certificate Principal Balance of the Class M-1 Certificates (after giving effect
to the distribution of the Class M-1 Principal Distribution Amount on such
Distribution Date), (C) the Certificate Principal Balance of the Class M-2
Certificates (after giving effect to the distribution of the Class M-2 Principal
Distribution Amount on such Distribution Date) and (D) the Certificate Principal
Balance of the Class B Certificates immediately prior to such Distribution Date,
over (2) the lesser of (A) 93.40% of the sum of the aggregate of the Loan
Balances of the Mortgage Loans and the Pre-Funded Amount as of the last day of
the related Due Period and (B) the sum of the aggregate of the Loan Balances of
the Mortgage Loans and the Pre-Funded Amount as of the last day of the related
Due Period minus the OC Floor; provided, however, that after the Certificate
Principal Balances of the Senior (other than the Class A-IO), Class M-1 and
Class M-2 Certificates are reduced to zero, the Class B Principal Distribution
Amount for such Distribution Date will equal 100% of the Principal Distribution
Amount.

      "Class Interest Carryover Shortfall" means as to any Class of Offered
Certificates and any Distribution Date, an amount equal to the sum of (i) the
excess of the Class Monthly Interest Amount for the preceding Distribution Date
and any outstanding Class Interest

                                      -7-
<PAGE>

Carryover Shortfall with respect to such Class on any preceding Distribution
Date, over the amount in respect of interest that is actually distributed to the
Holders of such Class on such preceding Distribution Date plus (ii) one month's
interest on such excess, to the extent permitted by law, at the related
Certificate Rate.

      "Class M-1 Certificate" means any one of the Certificates designated on
the face thereof as a Class M-1 Certificate, substantially in the form annexed
hereto as Exhibit A-7 authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and each evidencing beneficial
ownership of an interest designated as a "regular interest" in the Master REMIC.

      "Class M-1 Certificate Rate" means with respect to any Distribution Date
and the Class M-1 Certificates, the lesser of (A) 4.670% per annum (or 5.170%
per annum for each Interest Period occurring after the Master Servicer first
fails to exercise its clean-up call option) and (B) the Net WAC Cap for the
Distribution Date.

      "Class M-1 Principal Distribution Amount" means, with respect to any
Distribution Date on or after the Stepdown Date, (x) 100% of the Principal
Distribution Amount if the Certificate Principal Balance of each Class of Senior
Certificates, other than the Class A-IO Certificates, has been reduced to zero
and a Trigger Event exists, or (y) if a Trigger Event is not in effect, the
excess of (1) the sum of (A) the aggregate Certificate Principal Balance of the
Senior Certificates, other than the Class A-IO Certificates, (after giving
effect to distributions of the Senior Principal Distribution Amount for such
Distribution Date) and (B) the Certificate Principal Balance of the Class M-1
Certificates immediately prior to such Distribution Date over (2) the lesser of
(A) 76.40% of the sum of the aggregate of the Loan Balances of all Mortgage
Loans and the Pre-Funded Amount as of the last day of the related Due Period and
(B) the sum of the aggregate of the Loan Balances of all Mortgage Loans and the
Pre-Funded Amount as of the last day of the related Due Period minus the OC
Floor.

      "Class M-2 Certificate" means any one of the Certificates designated on
the face thereof as a Class M-2 Certificate, substantially in the form annexed
hereto as Exhibit A-8 authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein and each evidencing beneficial
ownership of an interest designated as a "regular interest" in the Master REMIC.

      "Class M-2 Certificate Rate" means with respect to any Distribution Date
and the Class M-2 Certificates, the lesser of (A) 5.060% per annum (or 5.560%
per annum for each Interest Period occurring after the Master Servicer first
fails to exercise its clean-up call option) and (B) the Net WAC Cap for the
Distribution Date.

      "Class M-2 Principal Distribution Amount" means, with respect to any
Distribution Date on or after the Stepdown Date, (x) 100% of the Principal
Distribution Amount if the aggregate Certificate Principal Balance of each of
the Senior Certificates, other than the Class A-IO Certificates, and the Class
M-1 Certificates has been reduced to zero and a Trigger Event exists, or (y) if
a Trigger Event is not in effect, the excess of (1) the sum of (A) the aggregate
Certificate Principal Balance of the Senior Certificates, other than the Class
A-IO Certificates (after giving effect to distributions of the Senior Principal
Distribution Amount for

                                      -8-
<PAGE>

such Distribution Date), (B) the Certificate Principal Balance of the Class M-1
Certificates (after giving effect to distribution of the Class M-1 Principal
Distribution Amount for such Distribution Date) and (C) the Certificate
Principal Balance of the Class M-2 Certificates immediately prior to such
Distribution Date over (2) the lesser of 85.40% of the sum of the aggregate of
the Loan Balances of all Mortgage Loans and the Pre-Funded Amount as of the last
day of the related Due Period and (B) the sum of the aggregate of the Loan
Balances of all Mortgage Loans and the Pre-Funded Amount as of the last day of
the related Due Period minus the OC Floor.

      "Class Monthly Interest Amount" means, with respect to any Distribution
Date and any Class of Offered Certificates, the aggregate amount of interest
accrued during the related Interest Period at the related Certificate Rate on
the Certificate Principal Balance or Notional Amount (in the case of the Class
A-IO Certificates) of the Class of Offered Certificates.

      "Class Principal Carryover Shortfall" means, as to any Class of
Subordinate Certificates and any Distribution Date, the excess, if any, of (i)
the sum of (x) the amount of the reduction in the Certificate Principal Balance
of that Class of Subordinate Certificates on such Distribution Date as a result
of the application of Applied Realized Loss Amounts and (y) the amount of such
reductions on prior Distribution Dates over (ii) the amount distributed in
respect of the Class Principal Carryover Shortfall to such Class of Subordinate
Certificates on prior Distribution Dates.

      "Class Principal Distribution Amount" means either the Senior Principal
Distribution Amount, the Class M-1 Principal Distribution Amount, the Class M-2
Principal Distribution Amount or the Class B Principal Distribution Amount, as
the case may be.

      "Class R Certificate" means any one of the Certificates designated on the
face thereof as a Class R Certificate, substantially in the form annexed hereto
as Exhibit C, authenticated and delivered by the Trustee, representing the right
to distributions as set forth herein. For the purposes of the REMIC Provisions,
the Class R Certificate shall evidence beneficial ownership of (i) an interest
designated as the Class LT1-R Interest which is the "residual interest" in REMIC
I, (ii) an interest designated as the Class LT2-R Interest which is the
"residual interest" in REMIC II, (iii) an interest designated as the Class LT3-R
Interest which is the "residual interest" in REMIC III and (iv) an interest
designated as the Class MT-R Interest which is the "residual interest" in the
Master REMIC.

      "Class X-IO Certificate" means any one of the Certificates designated on
the face thereof as a Class X-IO Certificate, substantially in the form annexed
hereto as Exhibit B, authenticated and delivered by the Trustee, representing
the right to distributions as set forth herein, and evidencing beneficial
ownership of an interest designated as a "regular interest" in the Master REMIC.

      "Class X-IO Certificate Rate" has the meaning specified in footnote 3
under the heading "Master REMIC" in Section 2.07 of this Agreement.

      "Class X-IO Distribution Amount" means the amount available for
distribution on each Distribution Date in excess of the amount due the Offered
Certificates (exclusive of any amount distributable to such classes representing
REMIC Net WAC Cap

                                      -9-
<PAGE>

Carryover). The aggregate amount of Class X-IO Distribution Amounts, however,
cannot exceed the sum of (i) the amount of interest currently accruing on the
Class X-IO, (ii) the amount of interest previously accrued on the Class X-IO
Interest issued by the Master REMIC, (iii) the amount, if any the sum of (a) the
Initial Cut-off Date Pool Principal Balance and (b) the Original Pre-funded
Amount exceeds the aggregate of Initial Principal Balances of the Offered
Certificates, and (iv) amounts due the Class LTIII-PF-IO Interest issued by
REMIC III. For the purpose of this limitation, any amount of REMIC Net WAC Cap
Carryover paid to the Offered Certificates is treated as a Distribution on the
Class X-IO.

      "Class X-IO Initial Principal Balance" means an amount equal to the
initial Overcollateralization Amount as of the Closing Date. The Class X-IO
Certificates shall not accrue interest on this balance.

      "Clean-up Call Date" has the meaning assigned in Section 8.03.

      "Closing Date" means March 25, 2003.

      "Code" means the Internal Revenue Code of 1986, as amended.

      "Combined Loan-to-Value Ratio" means, with respect to any Mortgage Loan at
any given time, the ratio, expressed as a percentage, determined by dividing (x)
the sum of the original Principal Balance of the Mortgage Loan plus the
then-current Principal Balance of any loan or loans secured by a senior lien on
the Mortgaged Property by (y) the value of the related Mortgaged Property, based
upon the appraisal or other valuation made at the time of origination of the
Mortgage Loan.

      "Commission" means the United States Securities and Exchange Commission.

      "Compensating Interest" has the meaning assigned in Section 8.04.

      "Computer Tape" means the computer tape generated by the Master Servicer
which provides information relating to the Mortgage Loans, and includes the
master file.

      "Conduit Mortgage Loans" means the mortgage loans listed on the Conduit
Schedule of Mortgage Loans.

      "Conduit Schedule of Mortgage Loans" means the Schedule of Mortgage Loans
attached as Schedule E-4 hereto.

      "Conduit Seller" means CFHE Funding Company LLC, a Delaware limited
liability company.

      "Confirmatory Note" has the meaning assigned in Section 4.01(a).

      "Corporate Trust Office" means the office of the Trustee at which at any
particular time its corporate trust business shall be principally administered,
which office at the date of the execution of this Agreement is located at the
address set forth in Section 12.09.

                                      -10-
<PAGE>

      "Coupon Rate" means the rate of interest borne by each Note from time to
time.

      "Cumulative Loss Trigger Event" means, with respect to any Distribution
Date and the Mortgage Loans, that the fraction, expressed as a percentage,
obtained by dividing (x) the aggregate amount of cumulative Realized Losses
incurred on the Mortgage Loans from the Initial Cut-Off Date through the last
day of the related Due Period by (y) the sum of the aggregate principal balance
of the Mortgage Loans as of the Initial Cut-Off Date plus the Original
Pre-Funded Amount, exceeds the applicable percentages described below with
respect to such Distribution Date:

   Distribution Date                           Loss Percentage
-----------------------      ---------------------------------------------------
April 2006-March 2007        2.50% for April 2006, plus an additional 1/12th of
                             1.75% for each month thereafter through March 2007.

April 2007-March 2008        4.25% for April 2007, plus an additional 1/12th of
                             1.00% for each month thereafter through March 2008.

April 2008-March 2009        5.25% for April 2008, plus an additional 1/12th of
                             1.00% for each month thereafter through March 2009.

April 2009 and thereafter    6.25%

      "Cumulative Realized Loss Termination Event" shall occur on any
Distribution Date if the aggregate amount of Cumulative Realized Losses with
respect to the Mortgage Loans, incurred from the Cut-Off Date through the last
day of the related Due Period, exceeds 7.35% of the sum of (i) the aggregate
Principal Balance of the Mortgage Loans as of the Initial Cut-Off Date and (ii)
the Original Pre-Funded Amount.

      "Cumulative Realized Losses" means, as of any date of determination, the
aggregate amount of Realized Losses (net of any subsequent recoveries) with
respect to the Mortgage Loans.

      "Custodial Agreement" means the Custodial Agreement, dated as of March 25,
2003, by and among The Bank of New York, as Trustee, The CIT Group
Securitization Corporation III, as Depositor, CFHE Funding Company LLC, as
Conduit Seller, The CIT Group/Consumer Finance, Inc., as Seller and Master
Servicer, and The Bank of New York, as Custodian.

      "Custodian" means, The Bank of New York, as custodian pursuant to the
Custodial Agreement, or such other custodian appointed by the Master Servicer
and the Trustee pursuant thereto.

      "Cut-Off Date" means, with respect to the Initial Mortgage Loans, the
Initial Cut-Off Date or, with respect to the Subsequent Mortgage Loans, the
Subsequent Cut-Off Date.

      "Definitive Certificates" has the meaning assigned in Section 9.02(g).

                                      -11-
<PAGE>

      "Delayed Delivery Mortgage Loans" means the Initial Mortgage Loans for
which all or a portion of a related File is not delivered to the Trustee or the
Custodian on behalf of the Trustee on the Closing Date. The number of Delayed
Delivery Mortgage Loans shall not exceed 10% of the aggregate Loan Balance of
the Initial Mortgage Loans as of the Initial Cut-Off Date. To the extent that
CIT Consumer Finance shall be in possession of any Files with respect to any
Delayed Delivery Mortgage Loan, until delivery of such File to the Trustee or
the Custodian on behalf of the Trustee as provided in Section 4.01, CIT Consumer
Finance shall hold such files as Master Servicer hereunder, as agent and in
trust for the Trustee.

      "Deleted Mortgage Loan" has the meaning assigned in Section 4.03.

      "Delinquency Event" shall have occurred at any time that the 60+
Delinquency Percentage (Rolling Three Month) exceeds 45% of the Senior
Enhancement Percentage.

      "Delinquent" means, with respect to any Mortgage Loan, that any payment
or, in the case of partial payment an amount greater than $65.00 of any payment,
due on such Mortgage Loan is not made by the Mortgagor by the close of business
on the scheduled Due Date for such payment. A Mortgage Loan is "30 days
Delinquent" if such payment has not been received by the close of business on
the corresponding day of the month immediately succeeding the month in which
such payment was due, or, if there is no such corresponding day (e.g., as when a
30-day month follows a 31-day month in which a payment was due on the 31st day
of such month) then on the last day of such immediately succeeding month.
Similarly for "60 days Delinquent," "90 days Delinquent" and so on.

      "Depositor" means The CIT Group Securitization Corporation III, a Delaware
corporation, or any successor thereto.

      "Depository" means the initial Depository, The Depository Trust Company,
the nominee of which is CEDE & CO., and any permitted successor depository. The
Depository shall at all times be a "clearing corporation" defined in Section
8-102(3) of the Uniform Commercial Code of the State of New York.

      "Depository Participant" means a broker, dealer, bank or other financial
institution or other Person for whom from time to time a Depository effects
book-entry transfers and pledges of securities deposited with the Depository.

      "Determination Date" means the third Business Day prior to each
Distribution Date.

      "Direct Participant" or "DTC Participant" means any broker-dealer, bank or
other financial institution for which the Depository holds Offered Certificates
from time to time as a securities depository.

      "Disqualified Organization" means the meaning set forth from time to time
in the definition thereof at Section 860E(e)(5) of the Code (or any successor
statute thereto) and applicable to the Trust.

                                      -12-
<PAGE>

      "Distribution Date" means the 20th day of each calendar month during the
term of this Agreement, or if such day is not a Business Day, the next
succeeding Business Day, commencing in April 2003.

      "Due Date" means, as to any Mortgage Loan, the date of the month on which
the monthly payment for such Mortgage Loan is due.

      "Due Period" means, as to any Distribution Date, the calendar month
immediately preceding the month of such Distribution Date.

      "Electronic Ledger" means the electronic master record of mortgage loans
of the Master Servicer.

      "Eligible Account" means any account which is (i) an account maintained
with an Eligible Institution; (ii) an account or accounts the deposits in which
are fully insured by either the Bank Insurance Fund or the Savings Association
Insurance Fund of the FDIC; (iii) a "segregated trust account" maintained with
the corporate trust department of a federal or state chartered depository
institution or trust company with trust powers and acting in its fiduciary
capacity for the benefit of a Trustee, which depository institution or trust
company has capital and surplus (or, if such depository institution or trust
company is a subsidiary of a bank holding company system, the capital and
surplus of the bank holding company) of not less than $50,000,000 and the
securities of such depository institution (or, if such depository institution is
a subsidiary of a bank holding company system and such depository institution's
securities are not rated, the securities of the bank holding company) have a
credit rating from each Rating Agency in one of its generic credit rating
categories which signifies investment grade; or (iv) an account that will not
cause any Rating Agency to downgrade or withdraw its then-current rating
assigned to the Certificates, as confirmed in writing by each Rating Agency.

      "Eligible Institution" means the Trustee or any depository institution or
trust company (which may be the Trustee or an Affiliate of the Trustee)
organized under the laws of the United States or any state, the deposits of
which are insured to the full extent permitted by law by the Bank Insurance Fund
(presently administered by the Federal Deposit Insurance Corporation), which is
subject to supervision and examination by federal or state authorities and whose
short-term deposits have been rated P-1 or higher by Moody's and A-1 or higher
by Standard & Poor's or such other rating acceptable to the Rating Agencies.

      "Eligible Investments" has the meaning assigned in Section 5.05(b).

      "Eligible Servicer" means (A) any Person which, together with its
Affiliates (i) is qualified to act as Master Servicer of the Mortgage Loans
under applicable federal and state laws and regulations and (ii) services not
less than $100,000,000 in outstanding principal amount of residential mortgage
loans and has a net worth of at least $15,000,000, (B) CIT Consumer Finance and
(C) CITSF.

      "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

                                      -13-
<PAGE>

      "Event of Termination" has the meaning assigned in Section 7.01.

      "Excess Interest" means, as to any Distribution Date, the sum of (A) the
interest amounts remaining, if any, after the application of payments pursuant
to clauses 1 through 5 of clause A. of Section 8.01(c) and (B) the Excess
Overcollateralization Amount (after taking into account the payment of the
Principal Distribution Amount on such Distribution Date).

      "Excess Overcollateralization Amount" means, as to any Distribution Date,
the lesser of (i) the Basic Principal Amount for such Distribution Date and (ii)
the excess, if any, of (x) the Overcollateralization Amount (assuming 100% of
the related Basic Principal Amount is distributed on the Offered Certificates)
over (y) the Required Overcollateralization Amount.

                  "File" means, as to each Mortgage Loan (a) the original Note
(b) the original Mortgage with evidence of recording indicated thereon, (c)
assignments of the related Mortgage in recordable form and, if applicable, (d)
any riders or modifications of such Note and Mortgage, (e) any title insurance
policies (which may be evidenced in the file by binders, title commitments,
title reports or other indicia of title insurance provided by the title
insurance company) with respect to the Mortgages and (f) any assumption or
modification agreement.

      "Final Distribution Date" means the Distribution Date on which the final
distribution in respect of Certificates is made pursuant to Section 12.03.

      "Fixed Rate Certificates" means the Class A-2 Certificates, the Class A-3
Certificates, the Class A-4 Certificates, the Class A-5 Certificates, the Class
A-6 Certificates, the Class A-IO Certificates, the Class M-1 Certificates, the
Class M-2 Certificates and the Class B Certificates.

      "Funding Period" means the period from the Closing Date until the earliest
to occur of (a) the date on which the amount on deposit in the pre-funding
account (excluding investment earnings) is less than $100,000, (b) the close of
business on June 20, 2003 or (c) the Business Day immediately preceding the
Distribution Date on which the Net WAC Cap, exclusive of any investment earnings
included in the calculation thereof, is less than 2.79% as of the beginning of
the month in which such Distribution Date occurs.

      "Hazard Insurance Policy" means, with respect to each Mortgage Loan, the
policy of fire and extended coverage insurance (and federal flood insurance, if
the related Mortgaged Property was, according to the related appraisal, located
in a federally designated special flood hazard area) required to be maintained
for the related Mortgaged Property, as provided in Section 5.09, and which, as
provided in said Section 5.09, may be a blanket policy maintained by the Master
Servicer in accordance with the terms and conditions of said Section 5.09.

      "Holder" has the same meaning as "Certificateholder."

      "Independent" means, with respect to any specified Person, any person or
firm rendering an opinion on the Closing Date or any Person who (a) is in fact
independent of the specified Person, (b) does not have any direct financial
interest or any material indirect financial interest in the specified Person or
any Affiliate of the specified Person (other than acting as

                                      -14-
<PAGE>

outside counsel for the specified Person or such Affiliate), and (c) is not
connected with the specified Person as an officer, employee, promoter,
underwriter, trustee, partner, director (other than a law firm a member of which
is a director) or person performing similar functions. Except with respect to
any person or firm rendering an opinion on the Closing Date, whenever it is
herein provided that any Independent Person's opinion or certificate shall be
furnished to the Trustee, such person shall be approved by the Trustee and such
opinion or certificate shall state that the signer has read this definition and
that the signer is independent within the meaning hereof.

      "Initial Cut-Off Date" means, with respect to the Initial Mortgage Loans,
the opening of business on March 1, 2003.

      "Initial Cut-Off Date Pool Principal Balance" means the aggregate of the
Principal Balances of the Mortgage Loans as of the Initial Cut-Off Date.

      "Initial Mortgage Loan(s)" means one or more of the mortgage loans
described in the List of Initial Mortgage Loans, and which Mortgage Loans are to
be assigned by the Depositor to the Trust on the Closing Date; including,
without limitation, the Mortgage, collateral, liens, insurance policies and
guarantees of the obligations of the related Mortgage (other than guarantees, if
any, by the related broker) and any and all payments which are received pursuant
thereto on and after the Cut-Off Date, but excluding any payments which are
received pursuant thereto prior to the Cut-Off Date.

      "Initial Mortgage Loan Assets" has the meaning given to such term in
Section 2.02 hereof.

      "Initial Seller Mortgage Loans" means the mortgage loans listed on the
Seller Schedule of Initial Mortgage Loans.

      "Insurance Proceeds" means proceeds paid by any insurer pursuant to any
insurance policy or contract relating to a Mortgage Loan.

      "Interest Determination Date" has the meaning assigned in Section 5.12.

      "Interest Period" means the period for which interest on the outstanding
Certificate Principal Balance of each Class of Offered Certificates is payable.
Such period shall be (i) in the case of the Fixed Rate Certificates and each
Lower Tier Interest, the period from the first day of the calendar month
preceding the month of the Distribution Date through the last day of such
calendar month, with interest accruing on the basis of a 360-day year consisting
of twelve 30-day months; and (ii) in the case of the Variable Rate Certificates,
the period from the preceding Distribution Date to and including the date prior
to the current Distribution Date (or, in the case of the initial Distribution
Date, from the Closing Date to and including the date prior to the initial
Distribution Date) with interest accruing on the basis of the actual number of
days elapsed in the related Interest Period and a year of 360 days.

                                      -15-
<PAGE>

      "Investment Earnings" means investment earnings on the Pre-Funded Amount
deposited in the Pre-Funding Account pursuant to Section 5.05A, net of losses
and investment expenses.

      "Latest Possible Maturity Date" means the Distribution Date that as of the
Closing Date is three years after the scheduled maturity date of the Initial
Mortgage Loan with the latest scheduled maturity and such date shall not be
affected by when the Trust ceases to hold such Initial Mortgage Loan.

      "Liquidated Mortgage" means any Mortgage Loan as to which the Master
Servicer has determined that all amounts (including Liquidation Proceeds and
Insurance Proceeds) which it expects to recover from or on account of such
Mortgage Loan have been recovered; provided that any Mortgage Loan in respect of
which the related Mortgaged Property has been realized upon and disposed of and
the proceeds of such disposition have been received shall be deemed to be a
Liquidated Mortgage; provided, however, that a Liquidated Mortgage which has
been repurchased pursuant to Section 3.05(a) or 4.03(a) or as to which a
Qualified Substitute Mortgage Loan has been substituted pursuant to Section
3.05(b) or 4.03(b), in either case on or before the Business Day immediately
preceding the Distribution Date following the Due Period in which such Mortgage
Loan becomes a Liquidated Mortgage, shall be deemed not to have become a
Liquidated Mortgage during such Due Period. The Principal Balance of any
Liquidated Mortgage is zero.

      "Liquidation Expenses" means out-of-pocket expenses (exclusive of any
overhead expenses) which are incurred by the Master Servicer in connection with
the Liquidated Mortgages, including, without limitation, legal fees and
expenses, and any related and unreimbursed expenditures for property taxes,
property preservation or restoration of the property to marketable condition.

      "Liquidation Proceeds" means cash (including Insurance Proceeds) received
and retained in connection with Liquidated Mortgages, by foreclosure sale or
otherwise, net of Liquidation Expenses and net of any insurance premiums paid by
the Master Servicer pursuant to Section 5.09(a).

      "List of Initial Mortgage Loans" means the list attached hereto as Exhibit
D identifying each Initial Mortgage Loan constituting part of the corpus of the
Trust.

      "List of Subsequent Mortgage Loans" means, with respect to the sale of any
Subsequent Mortgage Loans by the Depositor to the Trust pursuant to a Subsequent
Transfer Agreement, the list attached to such Subsequent Transfer Agreement
identifying each Subsequent Mortgage Loan which, upon the execution and delivery
of such Subsequent Transfer Agreement, will constitute part of the corpus of the
Trust.

      "Loan Balance" means, with respect to each Mortgage Loan and any date of
determination, the actual outstanding Principal Balance thereof on the related
Cut-Off Date or relevant cut-off date with respect to a Qualified Substitute
Mortgage Loan, less any principal payments relating to such Mortgage Loan
included in previous Monthly Remittance Amounts; provided, however, that the
Loan Balance for any Mortgage Loan that has become a Liquidated

                                      -16-
<PAGE>

Mortgage shall be zero as of the first day of the Due Period following the Due
Period in which such Mortgage Loan becomes a Liquidated Mortgage, and at all
times thereafter.

      "Master REMIC" means the REMIC identified as the Master REMIC in Section
2.07.

      "Master Servicer" means CIT Consumer Finance until any Service Transfer
hereunder, and thereafter means the new servicer appointed pursuant to Article
VII.

      "Master Servicing Fee" means, as to any Distribution Date, the sum of (a)
the Monthly Servicing Fee for such Distribution Date, (b) any net investment
earnings due to the Master Servicer as of such Distribution Date and (c) any
Mortgage Fees collected by the Master Servicer with respect to the related Due
Period.

      "Monthly Advance" has the meaning assigned in Section 8.04.

      "Monthly Interest Amount" means, with respect to any Distribution Date,
(A) the sum, without duplication, of clauses (i) through (v) of the definition
of Monthly Remittance Amount; minus (B) any amounts netted from the foregoing or
withdrawn from the Certificate Account by or at the direction of the Master
Servicer as permitted by this Agreement.

      "Monthly Remittance Amount" means, with respect to any Distribution Date,
(A) the sum, without duplication, of (i) all interest received (including any
related Monthly Advances) with respect to the related Due Period and the
Mortgage Loans (net of the related Master Servicing Fee paid by the Master
Servicer), (ii) all Compensating Interest paid by the Master Servicer with
respect to the related Due Period, (iii) the portion of the Purchase Price
amounts, and Substitution Adjustment relating to interest on the Mortgage Loans
paid by CIT Consumer Finance or the Master Servicer with respect to the related
Due Period, (iv) the interest portion of all Liquidation Proceeds actually
collected by the Master Servicer with respect to the related Due Period and the
Mortgage Loans, (v) the Pre-Funding Earnings received with respect to the
related Due Period, (vi) the principal actually collected by the Master Servicer
with respect to the related Due Period and the Mortgage Loans, (vii) the
outstanding principal balance of each Mortgage Loan that was purchased from the
Trustee with respect to the related Due Period, (viii) any Substitution
Adjustment relating to principal delivered by CIT Consumer Finance in connection
with a substitution of a Mortgage Loan with respect to the related Due Period,
(ix) the principal portion of all Liquidation Proceeds actually collected by the
Master Servicer with respect to the related Due Period and Mortgage Loans and
(x) the amount of investment losses required to be deposited pursuant to Section
5.05(b); minus (B) any amounts netted from the foregoing or withdrawn from the
Certificate Account by or at the direction of the Master Servicer as permitted
by this Agreement.

      "Monthly Report" has the meaning assigned in Section 6.01.

      "Monthly Servicing Fee" means, as to any Distribution Date, one twelfth of
the product of 0.50% and the aggregate of the Loan Balances of all Mortgage
Loans as of the first day of the related Due Period (or, in the case of the
first Distribution Date, the Initial Cut-Off Date).

                                      -17-
<PAGE>

      "Moody's" means Moody's Investors Service, Inc.

      "Mortgage" means the mortgage, deed of trust or similar instrument
creating a lien on an estate in fee simple in the real property securing a
Mortgage Loan.

      "Mortgage Document" has the meaning assigned in Section 4.01(a).

      "Mortgage Fees" means late fees, prepayment fees and other similar fees
relating to the Mortgage Loans.

      "Mortgage Loan(s)" means one or more of the Initial Mortgage Loans and/or
Subsequent Mortgage Loans.

      "Mortgage Loan Assets" means the Initial Mortgage Loan Assets and the
Subsequent Mortgage Loan Assets.

      "Mortgage Pool" means the pool of Mortgage Loans assigned by the Depositor
to the Trust on the Closing Date and on any Subsequent Transfer Date.

      "Mortgage Rate" means, with respect to any particular Mortgage Loan, the
rate of interest specified in that Mortgage Loan adjusted to reflect a 30 day
month, 360 day year for any loan that uses another day count convention for
purposes of accruing interest.

      "Mortgaged Property" means the property subject to a Mortgage.

      "Mortgagor" means each Person who is indebted under a Mortgage Loan.

      "Net Mortgage Rate" means, for each Mortgage Loan, (x) the Mortgage Rate
in effect for such Mortgage Loan as of the first day of the related Due Period,
minus (y) the Monthly Servicing Fee for such Mortgage Loan.

      "Net WAC Cap" means, with respect to any Distribution Date and (A) the
Class A-4, Class A-5, Class A-6, Class M-1, Class M-2 and Class B Certificates,
a rate per annum equal to the sum of (i) a fraction, expressed as a percentage,
the numerator of which is equal to the product of (a) the aggregate Loan Balance
of the Mortgage Loans as of the beginning of the related Due Period and (b) the
weighted average of the Net Coupon Rates on the Mortgage Loans as of the
beginning of the related Due Period, and the denominator of which is equal to
the sum of (a) the aggregate Loan Balance of the Mortgage Loans plus (b) the
amounts on deposit in the Pre-Funding Account, each as of the first day of the
related Due Period, plus (ii) a fraction, expressed as a percentage, the
numerator of which is equal to the product of (a) 12 and (b) Pre-Funding
Earnings for the Distribution Date, and the denominator of which is equal to the
sum of (a) the aggregate Loan Balance of the Mortgage Loans plus (b) the amounts
on deposit in the Pre-Funding Account, each as of the first day of the related
Due Period, minus (iii) a fraction, expressed as a percentage, the numerator of
which is the product of (a) 5.00% and (b) the Notional Amount of the Class A-IO
Certificates for such Distribution Date, and the denominator of which is equal
to the sum of (a) the aggregate Loan Balance of the Mortgage Loans plus (b) the
amounts on deposit in the Pre-Funding Account, each as of the first day of the
related Due Period, and (B) the Class A-1 Certificates, a rate per annum equal
to the product of (x) the sum

                                      -18-
<PAGE>

of (i) a fraction, expressed as a percentage, the numerator of which is equal to
the product of (a) the aggregate Loan Balance of the Mortgage Loans as of the
beginning of the related Due Period and (b) the weighted average of the Net
Coupon Rates on the Mortgage Loans as of the beginning of the related Due
Period, and the denominator of which is equal to the sum of (a) the aggregate
Loan Balance of the Mortgage Loans plus (b) the amounts on deposit in the
Pre-Funding Account, each as of the first day of the related Due Period, plus
(ii) a fraction, expressed as a percentage, the numerator of which is equal to
the product of (a) 12 and (b) the Pre-Funding Earnings for the Distribution
Date, and the denominator of which is equal to the sum of (a) the aggregate Loan
Balance of the Mortgage Loans plus (b) the amounts on deposit in the Pre-Funding
Account, each as of the first day of the related Due Period, minus (iii) a
fraction, expressed as a percentage, the numerator of which is the product of
(a) 5.00% and (b) the Notional Amount of the Class A-IO Certificates for such
Distribution Date, and the denominator of which is equal to the sum of (a) the
aggregate Loan Balance of the Mortgage Loans plus (b) the amounts on deposit in
the Pre-Funding Account, each as of the first day of the related Due Period, and
(y) a fraction, the numerator of which is 30 and the denominator of which is the
actual number of days in the related Due Period.

      "Net WAC Cap Carryover" means, with respect to any Distribution Date and
any of the Class A-1 Certificates, Class A-4 Certificates, Class A-5
Certificates, Class A-6 Certificates, Class M-1 Certificates, Class M-2
Certificates and Class B Certificates, the sum of (A) the excess of (1) the
amount of interest that any such Class of Certificates, as applicable, would
otherwise be entitled to receive on the Distribution Date had the Certificate
Rate for such Class been calculated at the Certificate Rate for such Class and
Distribution Date without regard to the Net WAC Cap over (2) the amount of
interest payable on such Class at the respective Certificate Rate for such Class
for the Distribution Date and (B) the excess described in clause (A) for such
Class for all previous Distribution Dates (including any interest accrued on
that amount at the related Certificate Rate without regard to the Net WAC Cap)
not previously paid to such Class.

      "Nonrecoverable Advance" means any advance made or proposed to be made
pursuant to Section 8.04, which the Master Servicer believes, in its good faith
judgment, is not, or if made would not be, ultimately recoverable from future
payments and collections of the related Mortgage Loan.

      "Note" means the promissory note evidencing the indebtedness of a
Mortgagor under a Mortgage Loan.

      "Notional Amount" means, with respect to the Class A-IO Certificates, for
any Distribution Date prior to the 13th Distribution Date, the lesser of (i) the
sum of the aggregate Loan Balance of the Mortgage Loans and amounts remaining on
deposit in the Pre-Funding Account as of the beginning of the related Due Period
and (ii) the scheduled notional amount for such Distribution Date set forth in
the following schedule:

                                      -19-
<PAGE>

              Distribution Date                     Notional Amount

               April 20, 2003                         $200,000,000
                May 20, 2003                          $200,000,000
                June 20, 2003                         $200,000,000
                July 20, 2003                         $190,000,000
               August 20, 2003                        $180,000,000
             September 20, 2003                       $170,000,000
              October 20, 2003                        $160,000,000
              November 20, 2003                       $155,000,000
              December 20, 2003                       $150,000,000
              January 20, 2004                        $145,000,000
              February 20, 2004                       $140,000,000
               March 20, 2004                         $130,000,000

On and after the 13th Distribution Date, the Notional Amount of the Class A-IO
Certificates will be zero.

      "NRSRO" means any nationally recognized statistical rating organization.

      "OC Floor" means an amount equal to 0.50% of the sum of (1) the aggregate
of the Loan Balances of all Mortgage Loans as of the Initial Cut-Off Date and
(2) the Original Pre-Funded Amount.

      "OC Holiday Realized Loss Amount" means, with respect to the first three
Distribution Dates, to the extent of Excess Interest for such Distribution Date,
an amount equal to the amount of any Realized Losses that would otherwise be
allocated to the Class M-1, Class M-2 and Class B Certificates on such
Distribution Date.

      "OC Spread Holiday" means the period from and including the Closing Date
through and including the Distribution Date in June 2003.

      "Offered Certificate" means any one of the Class A-1 Certificates, the
Class A-IO Certificates, the Class A-2 Certificates, the Class A-3 Certificates,
the Class A-4 Certificates, the Class A-5 Certificates, the Class A-6
Certificates, the Class M-1 Certificates, the Class M-2 Certificates and the
Class B Certificates.

      "Officer's Certificate" means a certificate signed by the chairman of the
board, president or any vice president of the Master Servicer and delivered to
the Trustee.

      "One-Month LIBOR" has the meaning assigned in Section 5.12.

      "Opinion of Counsel" means a written opinion of counsel (internal or
external) who may be counsel for the Master Servicer, except that any opinion of
counsel relating to the

                                      -20-
<PAGE>

qualification of any of the REMICs as a REMIC or compliance with the REMIC
Provisions must be an opinion of counsel Independent with respect to the
Depositor and the Master Servicer.

      "Original Pre-Funded Amount" means the amount deposited in the Pre-Funding
Account on the Closing Date from the proceeds of the sale of the Certificates,
which amount is $120,978,756.75.

      "Outstanding Mortgage Loan" means, as to any Due Period, a Mortgage Loan
which was not the subject of a Principal Prepayment or was not fully paid prior
to or during such Due Period, which did not become a Liquidated Mortgage prior
to or during such Due Period, and which was not purchased (and did not become a
Deleted Mortgage Loan or a Replaced Mortgage Loan) prior to or with respect to
such Due Period pursuant to Section 3.05, Section 5.14 or Section 4.03.

      "Overcollateralization Amount" means, with respect to any Distribution
Date, the excess, if any, of (1) the sum of the aggregate of the Loan Balances
of all Mortgage Loans and the Pre-Funded Amount as of the close of business on
the last day of the preceding Due Period over (2) the aggregate outstanding
Certificate Principal Balances of the Offered Certificates (other than the Class
A-IO Certificates) as of the Distribution Date (after taking into account the
payment of the related Principal Distribution Amount on the Distribution Date).

      "Ownership Interest" means, with respect to any Certificate, any ownership
or security interest in such Certificate, including any interest in such
Certificate as the Holder thereof and any other interest therein, whether direct
or indirect, legal or beneficial.

      "Paying Agent" has the meaning assigned in Section 8.01(i).

      "Percentage Interest" means, with respect to any Offered Certificates of
any Class (other than the Class A-IO Certificates), a fraction, expressed as a
decimal, the numerator of which is the principal balance represented by such
Offered Certificate as of the Closing Date and the denominator of which is the
Certificate Principal Balance represented by all the Offered Certificates (other
than the Class A-IO Certificates) of such Class as of the Closing Date. With
respect to the Class A-IO, Class X-IO or Class R Certificates, the portion of
the Class evidenced thereby, expressed as a percentage, as stated on the face of
such Certificate, all of which shall total 100% with respect to the related
Class.

      "Permitted Transferee" means, as to any Class R Certificateholder or any
other prospective transferee of a Class R Certificate, any Person other than (a)
the United States, a State or any political subdivision thereof, any possession
of the United States, a foreign government, an international organization, or
any agency or instrumentality of any of the foregoing, (b) an organization
(other than a cooperative described in Section 521 of the Code) which would not
be subject to tax under the Code (including the tax on unrelated business
taxable income, as defined in Section 512(a)(1) of the Code) on any excess
inclusions (as defined in Section 860E(c)(1) of the Code) with respect to any
Class R Certificate, (c) an organization which is engaged in furnishing
electrical energy, or providing telephone service, to persons in rural areas (as
described in Section 1381(a)(2)(C) of the Code), or (d) a person which is not a
United States Person. The terms "United States," "United States Person" "State"
and

                                      -21-
<PAGE>

"international organization" shall have the meanings set forth in Code Section
7701 or any successor provision and any regulations promulgated thereunder. A
corporation will not be treated as an instrumentality of the United States or of
any State or political subdivision thereof, if all of the activities are subject
to tax, and, with the exception of the Federal Home Loan Mortgage Corporation, a
majority of its board of directors is not selected by such governmental unit.

      "Person" means any individual, corporation, partnership, joint venture,
association, joint stock company, trust (including any beneficiary thereof),
unincorporated organization or government or any agency or political subdivision
thereof.

      "Plan" has the meaning assigned in Section 9.02.

      "Pre-Funded Amount" means, with respect to any date of determination, the
amount on deposit in the Pre-Funding Account as of such date.

      "Pre-Funding Account" means the Pre-Funding Account established and
maintained in accordance with Section 5.05A hereof.

      "Pre-Funding Earnings" means, with respect to any Distribution Date
occurring during the Funding Period, the actual Investment Earnings earned on
the Pre-Funded Amount during the period beginning on the previous Distribution
Date (or, in the case of the first Distribution Date, the Closing Date) and
ending on the day preceding such Distribution Date or, in the event the Funding
Period ends prior to June 20, 2003, the last day of the Funding Period.

      "Principal Balance" means the unpaid principal balance of a Mortgage Loan.

      "Principal Distribution Amount" means, as to any Distribution Date, the
lesser of (a) the aggregate Certificate Principal Balances of the Offered
Certificates (other than the Class A-IO Certificates) immediately preceding such
Distribution Date and (b) the sum of (i) the Basic Principal Amount for such
Distribution Date minus the Excess Overcollateralization Amount for such
Distribution Date, (ii) the Subordination Increase Amount, if any, for such
Distribution Date and (iii) the OC Holiday Realized Loss Amount, if any, for
such Distribution Date.

      "Principal Prepayment" means any prepayment of the entire Principal
Balance of a Mortgage Loan.

      "Private Certificates" means the Class X-IO Certificates and Class R
Certificates.

      "Prohibited Transaction" means the definition thereof at Section
860F(a)(2) of the Code (or any successor statute thereto) and applicable to the
Trust.

      "Property" means the underlying property securing a Mortgage Loan.

      "Prospectus Supplement" means the CIT Home Equity Loan Trust 2003-1
Prospectus Supplement, dated March 3, 2003, to the Base Prospectus.

                                      -22-
<PAGE>

      "Purchase Price" means, with respect to a Mortgage Loan to be repurchased
hereunder, an amount equal to 100% of the outstanding Principal Balance thereof
as of the date of repurchase plus accrued and unpaid interest thereon to the
first day of the month in which the Purchase Price is to be distributed at its
Mortgage Rate plus unreimbursed Servicing Advances with respect to such Mortgage
Loan.

      "Qualified Institutional Buyer" shall have the meaning specified in Rule
144A.

      "Qualified Substitute Mortgage Loan" means, as to any Deleted Mortgage
Loan or Replaced Mortgage Loan for which such Qualified Substitute Mortgage Loan
is being substituted pursuant to Section 3.05(b) or Section 4.03(b), a Mortgage
Loan that (a) as of the date of its substitution, satisfies all of the
representations and warranties (which, except when expressly stated to be as of
origination, shall be deemed to be determined as of the date of its substitution
rather than as of the related Cut-Off Date or the Closing Date) in Section 3.02
and does not cause any of the representations and warranties in Section 3.03, to
the extent previously applicable to the Deleted Mortgage Loan or Replaced
Mortgage Loan, and after giving effect to such substitution, to be incorrect,
(b) has a Principal Balance not in excess of the Principal Balance of the
Deleted Mortgage Loan or Replaced Mortgage Loan, (c) has a Mortgage Rate not
more than 1% per annum lower than, and not more than 1% per annum higher than,
that of the Deleted Mortgage Loan or Replaced Mortgage Loan and has an interest
start date on or before the beginning of the Due Period in which it is
transferred to the Trust, (d) has a Combined Loan-to-Value Ratio not higher than
that of the Deleted Mortgage Loan or Replaced Mortgage Loan, (e) has a remaining
term to maturity not greater than (and not more than one year less than) that of
the Deleted Mortgage Loan or Replaced Mortgage Loan, (f) is of the same or
better credit risk category under the Seller's underwriting guidelines, (g) has
the same type of Mortgage Rate (i.e., a fixed rate Mortgage Loan) and (h) in the
case of a Balloon Loan, is a Balloon Loan, as the case may be. Notwithstanding
the foregoing, in the event that on any date more than one Qualified Substitute
Mortgage Loan is substituted for one or more Deleted Mortgage Loans or Replaced
Mortgage Loans, the requirement set forth in clause (b) above with respect to
the Principal Balance may be satisfied if the aggregate of the Principal
Balances of such Qualified Substitute Mortgage Loans is not greater than the
aggregate of the Principal Balances of such Qualified Mortgage Loans, the
requirement set forth in clause (c) above with respect to the Mortgage Rate may
be satisfied if the weighted average Mortgage Rate of such Qualified Substitute
Mortgage Loans is at least equal to the weighted average Mortgage Rate of such
Qualified Mortgage Loans; and the requirement set forth in clause (e) above with
respect to remaining term to stated maturity may be satisfied if the weighted
average remaining term to stated maturity of such Qualified Substitute Mortgage
Loans is not greater than the weighted average remaining term to stated maturity
of such Deleted Mortgage Loans or Replaced Mortgage Loans.

      "Rating Agencies" means Moody's and Standard & Poor's, or any successors
thereto; provided that if Moody's and Standard & Poor's no longer have a rating
outstanding on any Class of the Certificates, then references herein to Moody's
and Standard & Poor's shall be deemed to refer to the NRSRO then rating any
Class of the Certificates (or, if more than one such NRSRO is then rating any
Class of the Certificates, to each such NRSRO as may be designated by the
Servicer), and references herein to ratings by or requirements of Moody's and

                                      -23-
<PAGE>

Standard & Poor's shall be deemed to have the equivalent meanings with respect
to ratings by or requirements of such NRSRO.

      "Rating Agency Condition" with respect to any action that is subject to
the Rating Agency Condition means, the condition that each Rating Agency shall
have been given at least 30 days prior notice of a contemplated action and that
each of the Rating Agencies shall not have notified the Depositor, the Master
Servicer or the Trustee in writing that such action will result in a downgrade
or withdrawal of the then current rating of any Class of the Certificates.

      "Realized Loss" means as to any Liquidated Mortgage, the amount, if any,
by which the Principal Balance thereof as of the date of liquidation is in
excess of Liquidation Proceeds realized thereon and allocated to principal.

      "Record Date" means, with respect to (i) any Distribution Date and each
Class of Fixed Rate Certificates and the Class R Certificates, the last Business
Day of the calendar month immediately preceding the calendar month in which such
Distribution Date occurs and (ii) any Distribution Date and the Variable Rate
Certificates and the Class X-IO Certificates, the Business Day immediately
preceding such Distribution Date, or if definitive Variable Rate Certificates
have been issued, the last Business Day of the calendar month immediately
preceding the calendar month in which such Distribution Date occurs.

      "Reference Banks" means leading banks selected by the Trustee and engaged
in transactions in Eurodollar deposits in the international Eurocurrency market.

      "Regular Certificate" means any REMIC II Certificate other than a Class
R-II Certificate.

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

      "REMIC Administrator" means any Person appointed as REMIC Administrator
pursuant to Section 2.05.

      "REMIC Carryover Certificate" means all of the Offered Certificates.

      "REMIC I" means the segregated group of assets identified in Section 2.07
and constituting a REMIC created under this Agreement.

      "REMIC II" means the segregated group of assets consisting of the REMIC I
Regular Interests (as defined in Section 2.07 hereof) and constituting a REMIC
created under this Agreement.

      "REMIC III" means the segregated group of assets consisting of the REMIC
II Regular Interests (as defined in Section 2.07 hereof) and constituting a
REMIC created under this Agreement.

      "REMIC Net WAC Cap Carryover" means, for each Class of Certificates, the
amount determined by substituting the REMIC Net WAC Rate for the Net WAC Cap. In
the

                                      -24-
<PAGE>

case of the Class A-IO Certificates, Class A-2 Certificates, and Class A-3
Certificates, each such certificate shall be treated as subject to a maximum
rate equal to the REMIC Net WAC Cap and entitled to receive the REMIC Net WAC
Cap Carryover on the Distribution Date related to the Due Period in which any
amount of such REMIC Net WAC Cap Carryover arises.

      "REMIC Net WAC Rate" means the weighted average rate determined taking the
weighted average of each REMIC Regular Interest issued by REMIC II (other than
the LTII-PF-IO interest, except that for purposes of determining the REMIC Net
WAC Rate for REMIC III, the rate of each LTII-SB interest is treated as equal to
the REMIC Weighted Average Net Mortgage Rate reduced by 5% per annum until the
Rate Change Date of such LTII-SB interest and the REMIC Weighted Average Net
Mortgage Rate thereafter. The REMIC Net WAC Rate is intended to equal the Net
WAC Cap determined by excluding (i) the amount of investment earnings on the
Pre-Funding Account, (ii) interest earned during the first three Due Periods on
Subsequent Mortgage Loans, and (iii) interest earned during Due Period beginning
in June 2003 for any Subsequent Mortgage Loan that does not have an interest
start date on or before June 1, 2003 and shall be construed in accordance with
such intent.

      "REMIC Provisions" means provisions of the federal income tax law and the
applicable state and local law relating to REMICs and related provisions, and
regulations promulgated thereunder, as the foregoing may be in effect from time
to time.

      "REMIC WAC Excess" means the REMIC Net WAC Cap Carryover allocable to each
class of REMIC Carryover Certificate, respectively.

      "REMIC Weighted Average Net Mortgage Rate" means the weighted average of
the Net Mortgage Rates, except for this purpose the balance in the Pre-Funding
Account shall be treated as if it represented a Mortgage Loan with a zero
percent per annum rate and the rate on each Subsequent Mortgage Loan with an
interest start date on or before June 1, 2003 shall be treated as zero during
the first three Due Periods and the rate on each Subsequent Mortgage Loan with
an interest start date after June 2, 2003 shall be treated as zero during the
first four Due Periods.

      "REO Property" has the meaning assigned in Section 5.10.

      "Replaced Mortgage Loan" has the meaning assigned in Section 3.05(b).

      "Representative" means Salomon Smith Barney, Inc., as representative of
the several underwriters pursuant to the Underwriting Agreement dated as of
March 3, 2003, among CITCF, the Depositor and Salomon Smith Barney, Inc.

      "Repurchased Mortgage Loan" means any Mortgage Loan repurchased by CIT
Consumer Finance pursuant to Section 3.05(a), Section 5.14 or Section 4.03(a).
The Principal Balance of any Repurchased Mortgage Loan shall be zero as of the
last day of the related Due Period.

      "Required Overcollateralization Amount" means as to any Distribution Date
(1) prior to the Distribution Date in July 2003, zero, (2) from and including
the Distribution Date

                                      -25-
<PAGE>

in July, 2003 but prior to the Stepdown Date, the product of (x) 3.30% and (y)
the sum of the aggregate of the Loan Balances of all Mortgage Loans as of the
Initial Cut-Off Date plus the Original Pre-Funded Amount; and (3) on and after
the Stepdown Date, the greater of (i) the lesser of (x) the product of 3.30% and
the sum of the aggregate of the Loan Balances of all Mortgage Loans as of the
Initial Cut-Off Date plus the Original Pre-Funded Amount and (y) the product of
6.60% and the aggregate of the Loan Balances of all Mortgage Loans as of the end
of the related Due Period and (ii) the OC Floor; provided, however, that on each
Distribution Date during the continuance of a Trigger Event the Required
Overcollateralization Amount will equal the Required Overcollateralization
Amount in effect as of the Distribution Date immediately preceding the date on
which the Trigger Event first occurred.

      "Reserve Interest Rate" has the meaning assigned in Section 5.12.

      "Responsible Officer" means, with respect to the Trustee, any officer in
its Mortgage Backed Securities Unit of its Corporate Trust Department, as long
as it is the Trustee hereunder, including every vice president, assistant vice
president, the secretary, every assistant secretary, cashier or any assistant
cashier, controller or assistant controller, the treasurer, every assistant
treasurer, every trust officer, assistant trust officer and every other officer
or assistant officer of the Trustee customarily performing functions similar to
those performed by persons who at the time shall be such officers, respectively
and in each case, having direct responsibility for the administration of this
Agreement, or to whom a corporate trust matter is referred because of knowledge
of, familiarity with, and authority to act with respect to a particular matter.

      "Rule 144A" shall mean Rule 144A under the Securities Act, as such Rule
may be amended from time to time.

      "Schedule of Initial Mortgage Loans" means the Conduit Schedule of
Mortgage Loans or the Seller Schedule of Initial Mortgage Loans, set forth,
respectively, on Schedule I-A hereto or Schedule I-B hereto, as the context may
require.

      "Second Mortgage Loan" means a Mortgage Loan which constitutes a second
priority mortgage lien with respect to the related Property.

      "Securities Act" shall mean the Securities Act of 1933, as amended.

      "Seller" means The CIT Group/Consumer Finance, Inc., a Delaware
corporation.

      "Seller Mortgage Loans" means one or more of the Initial Seller Mortgage
Loans and/or Subsequent Mortgage Loans.

      "Seller Schedule of Initial Mortgage Loans" means the Schedule of Initial
Mortgage Loans attached as Schedule E-3 hereto.

      "Sellers" means the Seller and the Conduit Seller.

      "Senior Certificates" means collective reference to the Class A-1, Class
A-IO, Class A-2, Class A-3, Class A-4, Class A-5 and the Class A-6 Certificates.

                                      -26-
<PAGE>

      "Senior Enhancement Percentage" means, as to any Distribution Date, the
percentage equivalent of a fraction, the numerator of which is the sum of (i)
the aggregate Certificate Principal Balances of the Subordinate Certificates and
(ii) the Overcollateralization Amount (in each case, after taking into account
the distribution of the Principal Distribution Amount on such Distribution Date)
and the denominator of which is the sum of the aggregate of the Loan Balances of
all Mortgage Loans and the Pre-Funded Amount as of the last day of the related
Due Period.

      "Senior Lien" means with respect to any Second Mortgage Loan, the mortgage
loan relating to the corresponding Property having a first priority lien.

      "Senior Principal Distribution Amount" means (a) with respect to any
Distribution Date prior to the Stepdown Date or during the continuance of a
Trigger Event, the lesser of (i) 100% of the Principal Distribution Amount and
(ii) the aggregate Certificate Principal Balances of the Senior Certificates
(other than the Class A-IO Certificates) immediately prior to such Distribution
Date, and (b) with respect to any other Distribution Date, the lesser of (x)
100% of the Principal Distribution Amount and (y) the excess, if any, of (i) the
aggregate Certificate Principal Balances of the Senior Certificates (other than
the Class A-IO Certificates) immediately prior to such Distribution Date over
(ii) the lesser of (x) the product of 64.90% and the sum of the aggregate of the
Loan Balances of all Mortgage Loans and the Pre-Funded Amount as of the last day
of the related Due Period and (y) the sum of the aggregate of the Loan Balances
of all Mortgage Loans and the Pre-Funded Amount as of the last day of the
related Due Period minus the OC Floor.

      "Service Transfer" has the meaning assigned in Section 7.02.

      "Servicing Advance" has the meaning assigned in Section 5.08.

      "Servicing Officer" means any officer of the Master Servicer or a
sub-servicer, as applicable, involved in, or responsible for, the administration
and servicing of Mortgage Loans whose name and Specimen Signature appears on a
list of servicing officers appearing in an Officer's Certificate furnished to
the Trustee by the Master Servicer, as the same may be amended from time to
time.

      "60+ Delinquency Percentage (Rolling Three Month)" means, with respect to
any Distribution Date, the average of the percentage equivalents of the
fractions determined for each of the three immediately preceding Due Periods (or
such fewer number of Due Periods since the Cut-Off Date, in the case of the
first two Determination Dates) the numerator of each of which is equal to the
sum of (without duplication) the aggregate Loan Balance of 60-Day Delinquent
Loans for such Due Period, and the denominator of which is the sum of the
aggregate of the Loan Balances of all Mortgage Loans and amounts on deposit in
the Pre-Funding Account as of the end of such Due Period.

      "60-Day Delinquent Loan" means with respect to any Due Period, and without
duplication, (i) all REO Properties as of the last day of such Due Period, (ii)
each Mortgage Loan with respect to which any portion greater than $65.00 of a
Monthly Payment is, as of the last day of such Due Period, two months
(calculated from Due Date with respect to such Mortgage Loan

                                      -27-
<PAGE>

to Due Date) or more past due (without giving effect to any grace period),
provided that a scheduled payment on a Mortgage Loan (and, accordingly, such
Mortgage Loan) is not considered delinquent or past due unless such payment has
not been received by the close of business on the scheduled due date for such
payment in the following month, and (iii) each Mortgage Loan in foreclosure as
of the last day of such Due Period.

      "Standard & Poor's" means Standard & Poor's Ratings Service, a division of
The McGraw-Hill Companies, Inc. or any successor thereto.

      "Stepdown Date" means the earlier to occur of (1) the Distribution Date on
which the aggregate Certificate Principal Balance of the Senior Certificates
(other than the Class A-IO Certificates) is reduced to zero and (2) the later to
occur of (A) the Distribution Date in April 2006 and (B) the first Distribution
Date on which the Certificate Principal Balance of the Senior Certificates
(other than the Class A-IO Certificates) (after giving effect to the
distribution of the Principal Distribution Amount on such Distribution Date) is
less than or equal to 64.90% of the sum of the aggregate of the Loan Balances of
all Mortgage Loans and the Pre-Funded Amount as of the end of the related Due
Period.

      "Subordinate Certificates" means collective reference to the Class M-1,
Class M-2 and the Class B Certificates.

      "Subordination Deficiency" means, as to any Distribution Date, the excess,
if any, of (1) the Required Overcollateralization Amount for such Distribution
Date over (2) the Overcollateralization Amount for such Distribution Date after
giving effect to the distribution of the Basic Principal Amount on such
Distribution Date.

      "Subordination Increase Amount" means, with respect to the first three
Distribution Dates, zero, and as to any subsequent Distribution Date, the lesser
of (1) the Subordination Deficiency and (2) the Excess Interest.

      "Subsequent Cut-Off Date" means, with respect to the Subsequent Mortgage
Loans, the opening of business on the first day of the month of the related
Subsequent Transfer Date specified in a Subsequent Transfer Agreement with
respect to those Subsequent Mortgage Loans which are transferred and assigned to
the Trust pursuant to the related Subsequent Transfer Agreement.

      "Subsequent Mortgage Loan(s)" means one or more of the mortgage loans
described in the List of Subsequent Mortgage Loans, which Mortgage Loans are to
be assigned by the Depositor to the Trust after the Closing Date; including,
without limitation, the Mortgage, collateral, liens, insurance policies and
guarantees of the obligations of the related Mortgage (other than guarantees, if
any, by the related broker) and any and all payments which are received pursuant
thereto on and after the Subsequent Cut-Off Date, but excluding any payments
which are received pursuant thereto prior to the Subsequent Cut-Off Date.

      "Subsequent Mortgage Loan Assets" has the meaning given to such term in
the Subsequent Transfer Agreement.

                                      -28-
<PAGE>

      "Subsequent Purchase Agreement" means a Subsequent Purchase Agreement,
dated as of a Subsequent Cut-Off Date, between the Seller and the Depositor
providing for the sale of Subsequent Mortgage Loans from the Seller to the
Depositor and substantially in the form of Exhibit L hereto.

      "Subsequent Transfer Agreement" means each Subsequent Transfer Agreement
dated as of a Subsequent Transfer Date between the Trust and the Depositor
substantially in the form of Exhibit M hereto, by which Subsequent Mortgage
Loans are sold and assigned to the Trust.

      "Subsequent Transfer Date" means the date specified in the related
Subsequent Transfer Agreement.

      "Substitution Adjustment" has the meaning assigned in Section 3.05(b).

      "Supplemental Interest Reserve Fund" means the Supplemental Interest
Reserve Fund established and maintained as described in Section 8.05.

      "Tax Matters Person" means, with respect to each of the REMICs created
hereunder, the Person designated as the "tax matters person" of such REMIC in
the manner provided under Treasury Regulations Section 1.860F-4(d) and Treasury
Regulations Section 301.6231(a)(7)-1, which Person shall be the holder of the
Tax Matters Person Residual Interest.

      "Tax Matters Person Residual Interest" means the 0.01% interest in the
Class R Certificate transferred to the REMIC Administrator appointed pursuant to
this Agreement.

      "Tax Returns" means, with respect to (i) each of the REMICs created
hereunder, the federal income tax return on Internal Revenue Service Form 1066,
U.S. Real Estate Mortgage Investment Conduit Income Tax Return, including
Schedule Q thereto, Quarterly Notice to Residual Interest Holders of REMIC
Taxable Income or Net Loss Allocation, or any successor forms, to be filed on
behalf of each of REMIC I, REMIC II, REMIC III and Master REMIC due to its
classification as a REMIC under the REMIC Provisions, and (ii) any portion of
the Trust that does not constitute part of REMIC I, REMIC II, REMIC III and
Master REMIC, Internal Revenue Service Form 1041, together, in each case, with
any and all other information, reports or returns that may be required to be
furnished to the Certificateholders or filed with the Internal Revenue Service
under any applicable provisions of federal tax law or any other governmental
taxing authority under applicable state and local tax laws.

      "Telerate Page 3750" means the display page currently so designated on the
Telerate Service (or such other page as may replace that page on that service
for the purpose of displaying London interbank offered rates of major banks).

      "Transfer" means any direct or indirect transfer or sale of any Ownership
Interest in a Certificate.

      "Transferee" means any Person who is acquiring by Transfer any Ownership
Interest in a Certificate.

                                      -29-
<PAGE>

      "Transferor" means any Person who is disposing by Transfer any Ownership
Interest in a Certificate.

      "Treasury Regulations" means any proposed, temporary or final regulation
promulgated under the Code.

      "Trigger Event" means the existence of a Delinquency Event or a Cumulative
Loss Trigger Event.

      "Trust" means CIT Home Equity Loan Trust 2003-1, the trust created by this
Agreement.

      "Trust Estate" means (a) the Mortgage Loan Assets and (b) such amounts as
may be held by the Trustee in the Certificate Account, the Supplemental Interest
Reserve Fund and the Pre-Funding Account, together with investment earnings on
such amounts, whether in the form of cash, instruments, securities or other
properties (including any Eligible Investments held by the Master Servicer).

      "Trustee" means The Bank of New York, a New York banking corporation, not
in its individual capacity but solely as Trustee under this Agreement, and any
successor hereunder.

      "Trustee Reimbursable Expenses" means, as of any Distribution Date, the
sum of (a) any trustee fee not paid on such Distribution Date and (b) any
amounts owed to the Trustee pursuant to Sections 7.03, 10.02, 10.03 and 11.05.

      "Variable Rate Certificates" means the Class A-1 Certificates.

      "WAC Excess" means the Net WAC Cap Carryover allocable to each of the
Offered Certificates, respectively.

      "Weighted Average Net Mortgage Rate" means, for any Distribution Date, the
weighted average of the Net Mortgage Rates for the Mortgage Loans as of the
first day of the related Due Period, weighted on the basis of their respective
Principal Balances outstanding as of the first day of the related Due Period.

                                   ARTICLE II

             ESTABLISHMENT OF THE TRUST; TRANSFER OF MORTGAGE LOANS

      SECTION 2.01. Establishment of the Trust.

      There is hereby created, by the Depositor, a separate trust which shall be
known as CIT Home Equity Loan Trust 2003-1. The Trust shall be administered
pursuant to the provisions of this Agreement for the benefit of
Certificateholders.

                                      -30-
<PAGE>

      SECTION 2.02. Conveyance of the Initial Mortgage Loans.

      Each of the Seller, with respect to the Initial Seller Mortgage Loans, and
the Conduit Seller, with respect to the Conduit Mortgage Loans, hereby bargains,
sells, conveys, assigns and transfers to the Depositor, in trust, without
recourse and for the exclusive benefit of the Holders of the Certificates, all
of its right, title and interest in and to the Initial Mortgage Loans, including
(a) all principal collected and interest due on the Initial Mortgage Loans on
and after the Initial Cut-Off Date and any and all other benefits accruing from
the Initial Mortgage Loans which the Seller and the Conduit Seller,
respectively, is causing to be delivered to the Trustee or the Custodian as
designee of the Trustee, together with the related Mortgage Documents and the
Seller's and Conduit Seller's respective interest in any Property, and all
payments thereon and proceeds of the conversion, voluntary or involuntary, of
the foregoing; and (b) proceeds of all the foregoing (including, but not by way
of limitation, all proceeds of any mortgage insurance, flood insurance, hazard
insurance and title insurance policy, if any, relating to the Initial Mortgage
Loans, cash proceeds, accounts, accounts receivable, notes, drafts, acceptances,
chattel paper, checks, deposit accounts, rights to payment of any and every
kind, and other forms of obligations and receivables which at any time
constitute all or part of or are included in the proceeds of any of the
foregoing) to pay the Certificates as specified herein (the "Initial Mortgage
Loan Assets"). The parties intend and agree that each of the conveyance of the
Seller's right, title and interest in and to the Initial Seller Mortgage Loans
pursuant to this Agreement and the conveyance of the Conduit Seller's right,
title and interest in and to the Conduit Mortgage Loans pursuant to this
Agreement shall constitute an absolute sale. In the event, however, that
notwithstanding such intent and agreement, a transfer and assignment
contemplated hereby is determined not to be a conveyance of ownership, each of
the Seller and the Conduit Seller hereby grants to the Depositor a first
priority perfected security interest in the Initial Seller Mortgage Loans and
the Conduit Mortgage Loans, respectively.

      The Depositor, concurrently with the execution and delivery hereof, hereby
sells, transfers, assigns, sets over and otherwise conveys to the Trust, without
recourse, all the right, title and interest of the Depositor in and to the Trust
Estate. The parties intend and agree that the conveyance of the Depositor's
right, title and interest in and to the Trust Estate pursuant to this Agreement
shall constitute an absolute sale. In the event, however, that notwithstanding
such intent and agreement, a transfer and assignment contemplated hereby is
determined not to be a conveyance of ownership, the Depositor hereby grants to
the Trust a first priority perfected security interest in the Trust Estate.

      The Trustee acknowledges such sale, accepts the trusts hereunder in
accordance with the provisions hereof and agrees to perform the duties herein in
accordance with the provisions of this Agreement.

      SECTION 2.03. Conveyance of the Subsequent Mortgage Loans.

      In consideration of the Trustee's delivery on the related Subsequent
Transfer Date to or upon the order of the Depositor of the purchase price for
the Subsequent Mortgage Loans to be conveyed to the Trust on such date up to the
balance of funds on deposit in the Pre-Funding Account on such related
Subsequent Transfer Date, the Depositor shall sell, transfer, assign, set over
and otherwise convey to the Trust, by execution of an assignment substantially
in the form

                                      -31-
<PAGE>

of the Subsequent Transfer Agreement attached hereto as Exhibit M, and the Trust
shall purchase all the right, title and interest of the Depositor in and to the
Subsequent Mortgage Loans and all the rights, benefits, and obligations arising
from and in connection with each Subsequent Mortgage Loan, including (a) all
principal collected and interest due on the Subsequent Mortgage Loans on and
after the related Subsequent Cut-Off Date and any and all other benefits
accruing from the Subsequent Mortgage Loans which the Seller is causing to be
delivered to the Trustee or the Custodian as designee of the Trustee, together
with the related Mortgage Documents and the Seller's interest in any Property,
and all payments thereon and proceeds of the conversion, voluntary or
involuntary, of the foregoing; and (b) proceeds of all the foregoing (including,
but not by way of limitation, all proceeds of any mortgage insurance, flood
insurance, hazard insurance and title insurance policy, relating to the
Subsequent Mortgage Loans, cash proceeds, accounts, accounts receivable, notes,
drafts, acceptances, chattel paper, checks, deposit accounts, rights to payment
of any and every kind, and other forms of obligations and receivables which at
any time constitute all or part of or are included in the proceeds of any of the
foregoing) to pay the Certificates as specified herein (the "Subsequent Mortgage
Loan Assets" and, together with the Initial Mortgage Loan Assets, the "Mortgage
Loan Assets"). The parties intend and agree that the conveyance of the
Depositor's right, title and interest in and to the Subsequent Mortgage Loans
pursuant to this Agreement shall constitute an absolute sale. In the event,
however, that notwithstanding such intent and agreement, a transfer and
assignment contemplated hereby is determined not to be a conveyance of
ownership, the Depositor hereby grants to the Trust a first priority perfected
security interest in the Subsequent Mortgage Loans. The "purchase price" for the
Subsequent Mortgage Loans shall be one hundred percent (100%) of the aggregate
principal amount outstanding on the Subsequent Mortgage Loans so transferred as
of the related Subsequent Cut-Off Date and shall be payable in immediately
available funds on the related Subsequent Transfer Date.

      The amount released to or upon the order of the Depositor from the
Pre-Funding Account on any Subsequent Transfer Date (or from other amounts
payable to the Depositor on the Closing Date) in connection with any conveyance
of Subsequent Mortgage Loans to be included in the Mortgage Pool shall not
exceed the Original Pre-Funded Amount. The amount so released to or upon the
order of the Depositor in connection with any conveyance of Subsequent Mortgage
Loans shall, for federal income tax purposes, be considered cash contributed to
REMIC I by the Depositor and used by the Trustee to acquire the related
Subsequent Mortgage Loans for a purchase price established pursuant to this
Section 2.03.

      On each Subsequent Transfer Date, the Seller shall transfer to the
Depositor pursuant to a Subsequent Purchase Agreement, and the Depositor shall
transfer to the Trust pursuant to a Subsequent Transfer Agreement, the
Subsequent Mortgage Loans to be transferred as of such Subsequent Transfer Date
and the related Subsequent Mortgage Loan Assets, upon the satisfaction of each
of the following conditions on or prior to such Subsequent Transfer Date:

      (a) the Master Servicer shall provide the Trustee and the Rating Agencies
with an Addition Notice in the form attached as Exhibit N hereto and shall
provide any information reasonably requested by the Trustee, the Depositor or
the Rating Agencies with respect to the related Subsequent Mortgage Loans;

                                      -32-
<PAGE>

      (b) the Master Servicer shall deliver to the Trustee and the Rating
Agencies a duly executed Subsequent Transfer Agreement and any other related
documentation in the forms of the exhibits listed thereon;

      (c) each of the Seller and the Depositor shall deposit in the Certificate
Account all collections in respect of the Subsequent Mortgage Loans received by
it on or after such Subsequent Cut-Off Date (whether in the nature of amounts
held by it for later application on behalf of the related Mortgagor in respect
of a monthly payment due on or after such Subsequent Cut-Off Date or otherwise)
except for amounts in respect of interest accrued on such Subsequent Mortgage
Loans prior to such Subsequent Cut-Off Date;

      (d) each of the Seller and the Depositor shall certify that, as of such
Subsequent Transfer Date, it was not insolvent, it was made insolvent by such
transfer and it is not aware of any pending insolvency;

      (e) the Funding Period shall not have expired; and

      (f) the Subsequent Mortgage Loans shall satisfy the criteria set forth in
Section 3.06.

      In addition, the Depositor will provide to the Trustee, the Rating
Agencies and the Master Servicer data regarding all Subsequent Mortgage Loans to
be transferred to the Trust on any Subsequent Transfer Date prior to the related
Subsequent Transfer Date.

      SECTION 2.04. [Reserved]

      SECTION 2.05. Appointment of REMIC Administrators.

      (a) The Trustee may appoint one or more REMIC Administrators, which shall
be authorized to act on behalf of the Trustee in performing the functions set
forth in Section 5.10 herein. Each REMIC Administrator must be acceptable to the
Depositor and must be organized and doing business under the laws of the United
States of America or of any State and be subject to supervision or examination
by federal or state authorities. The Trustee initially appoints CIT Consumer
Finance as REMIC Administrator and CIT Consumer Finance hereby accepts such
appointment. The fees and expenses of the REMIC Administrator shall be paid by
the Master Servicer. The Depositor acknowledges that CIT Consumer Finance is an
acceptable REMIC Administrator. If the Trustee makes appointments of REMIC
Administrators in the future, the Trustee shall advise the Depositor of the
identity of such REMIC Administrator, and the Depositor shall confirm in writing
to the Trustee whether such Person is acceptable as REMIC Administrator. The
Trustee shall not be liable for losses or liabilities to the Trust caused by any
actions taken by any REMIC Administrator appointed by the Trustee.

      (b) Any Person into which any REMIC Administrator may be merged or
converted or with which it may be consolidated, or any Person resulting from any
merger, conversion, or consolidation to which any REMIC Administrator shall be a
party, or any Person succeeding to the corporate agency business of any REMIC
Administrator, shall continue to be

                                      -33-
<PAGE>

the REMIC Administrator without the execution or filing of any paper or any
further act on the part of the Trustee or the REMIC Administrator.

      (c) Any REMIC Administrator (other than CIT Consumer Finance) may at any
time resign by giving at least 30 days' advance written notice of resignation to
the Trustee, the Certificate Registrar, the Paying Agent, the Master Servicer
and the Depositor. For so long as CIT Consumer Finance is acting as Master
Servicer hereunder, they may not resign as REMIC Administrator. The Trustee may
at any time terminate the agency of any REMIC Administrator by giving written
notice of termination to such REMIC Administrator, the Master Servicer, the
Certificate Registrar and the Depositor. Upon receiving a notice of resignation
or upon such a termination, or in case at any time any REMIC Administrator shall
cease to be eligible in accordance with the provisions of this Section 2.05, the
Trustee may appoint a successor REMIC Administrator, in which case the Trustee
shall give written notice of such appointment to the Master Servicer and the
Depositor and shall mail notice of such appointment to all Holders of
Certificates; provided, however, that no successor REMIC Administrator shall be
appointed unless eligible under the provisions of this Section 2.05. Any
successor REMIC Administrator upon acceptance of its appointment hereunder shall
become vested with all the rights, powers, duties and responsibilities of its
predecessor hereunder, with like effect as if originally named as REMIC
Administrator.

      SECTION 2.06. Acceptance by Trustee.

      The Trustee hereby acknowledges conveyance of the Initial Mortgage Loans
and the Files with respect thereto pursuant to Section 2.02 hereof to the
Trustee on behalf of the Trust and declares that the Trustee will hold all
Initial Mortgage Loans that have been delivered in trust, upon the trusts herein
set forth, for the benefit of all Certificateholders, that the Trustee will
accept delivery of the Files with respect thereto pursuant to Section 4.01
hereof and the Trustee or the Custodian as its designee will hold such Files for
the benefit of the Trust as provided herein and shall issue to or upon the
written order of the Depositor, Certificates representing ownership of a
beneficial interest in 100% of the Trust.

      SECTION 2.07. Designation of Interests in REMICs.

      The Trust Fund for federal income tax purposes will consist of four REMICs
("REMIC I", "REMIC II", "REMIC III" and the "Master REMIC"). The "latest
possible maturity date" for federal income tax purposes of all interests created
hereby will be the Latest Possible Maturity Date.

      REMIC I will consist of all of the assets constituting the Trust Fund
other than the assets held in the Supplemental Interest Reserve Fund, the
Pre-Funding Account (including any investment earnings thereon) and the REMIC
regular interests issued by REMIC I, REMIC II, REMIC III, and the Master REMIC
held by the Trust. REMIC I shall issue 3 uncertificated interests that shall be
designated as REMIC regular interests within the meaning of Code Section
860G(a)(1): the LTI-1 Interest, the LTI-2 Interest, and the LTI-3 Interest (the
"REMIC I Regular Interests"). In addition, REMIC I shall issue the R-1 interest
and shall designate such interest as its sole class of residual interest.

                                      -34-
<PAGE>

      REMIC II shall hold as its assets the uncertificated REMIC regular
interests issued by REMIC I. REMIC II shall issue the R-2 interest and shall
designate such interest as its sole class of residual interest. In addition,
REMIC II shall issue the 12 uncertificated REMIC regular interests (the "REMIC
II Regular Interests") set forth below for REMIC II.

      REMIC III shall hold as its assets the uncertificated REMIC regular
interests issued by REMIC II REMIC III shall issue the R-3 interest and shall
designate such interest as its sole class of residual interest. In addition,
REMIC III shall issue the 21 uncertificated REMIC regular interests (the "REMIC
III Regular Interests") set forth below for REMIC II.

      The Master REMIC will consist of the REMIC III Regular Interests and will
be evidenced by the 11 Classes of regular interests set forth below for the
Master REMIC (which each will represent the "regular interests" in the Master
REMIC) and the R-4 Interest as the single "residual interest" in the Master
REMIC. The Class R shall not be considered a Certificate issued by the Master
REMIC, but instead shall represent beneficial ownership of the Class R-1, Class
R-2, Class R-3, and Class R-4 interests.

      REMIC I:

      The REMIC I Regular Interests, each of which is hereby designated a REMIC
regular interest for federal income tax purposes, shall have the following
principal balances, pass-through rates and corresponding Loan Groups in the
manner set forth in the following table:

--------------------------------------------------------------------------------
      REMIC                             Initial                      Pass-
    Interests                           Balance                   Through Rate
--------------------------------------------------------------------------------
      LTI-1                               (1)                          (2)
--------------------------------------------------------------------------------
      LTI-2                               (3)                          (4)
--------------------------------------------------------------------------------
    LTI-PF-IO                             (5)                          (6)
--------------------------------------------------------------------------------

      (1)   The principal balance of the Initial Mortgage Loans as of the
            Cut-off Date.

      (2)   The pass-through rate for the Class LTI-1 interest shall be a rate
            equal to the weighted average of the Net Mortgage Rates for the
            Initial Mortgage Loans for the first four Distribution Dates and the
            Weighted Average Net Mortgage Rate for each Distribution Date
            thereafter.

      (3)   An amount equal to the Original Prefunded Amount.

      (4)   The pass-through rate for the Class LTI-2 interest shall be a rate
            equal to zero during the first three Due Periods and a rate equal to
            the weighted average of the Net Mortgage Rates for the Subsequent
            Mortgage Loans for the fourth Due Period, except that any Subsequent
            Mortgage Loan that has an interest start date after June 1, 2003
            shall be treated as having a rate of zero percent per annum for the
            Due Period beginning June 1, 2003. After the fourth Due Period the
            rate on the Class LTI-2 shall equal the Weighted Average Net
            Mortgage Rate.

      (5)   The Class LTI-PF-IO shall not have a principal balance.

                                      -35-
<PAGE>

      (6)   The Class LTI-PF-IO shall be entitled to 100% of the interest
            accruing on Subsequent Mortgage Loans during the first three Due
            Periods and shall be entitled to 100% of the interest accruing on
            the Subsequent Mortgage Loans with an interest start date after June
            1, 2003.

      For the first four Distribution Dates, the Class LTI-1 shall be entitled
to receive distributions (and allocated Realized Losses) so that its Principal
Balance is reduced to the principal balance of the Initial Mortgage Loans at the
end of the Due Period related to such Distribution Date. For the first four
Distribution Dates, the Class LTI-2 shall be entitled to receive distributions
(and allocated Realized Losses) so that its Principal Balance is reduced to the
sum of: (i) the principal balance of the Subsequent Mortgage Loans at the end of
the Due Period related to such Distribution Date and (ii) any amount remaining
in the Pre-Funding Account at the end of the Due Period related to such
Distribution Date. After the first four Distribution Dates, the Class LTI-1 and
the Class LTI-2 shall be entitled to share proportionately in principal
payments, proceeds from the sale of any REO property, Realized Losses, and
interest payments based on their outstanding principal balances.

      REMIC II:

      The REMIC II Regular Interests shall have the following principal
balances, and the pass-through rates in the manner set forth in the following
table:

                    Notional                                          Initial
REMIC II         Balance of the       Initial           Rate          Interests
Interest             A-IO(1)       Interest Rate    Change Date        Balance
--------         --------------    -------------    -----------       ----------
LTII-1                  (2)             (3)             N/A             N/A
LTII-SB (1)        200,000,000          (3)        June 1, 2003      10,000,000
LTII-SB (2)        190,000,000          (3)        July 1, 2003      10,000,000
LTII-SB (3)        180,000,000          (3)        Aug. 1, 2003      10,000,000
LTII-SB (4)        170,000,000          (3)        Sept. 1, 2003     10,000,000
LTII-SB (5)        160,000,000          (3)        Oct. 1, 2003       5,000,000
LTII-SB (6)        155,000,000          (3)        Nov. 1, 2003       5,000,000
LTII-SB (7)        150,000,000          (3)        Dec. 1, 2003       5,000,000
LTII-SB (8)        145,000,000          (3)        Jan. 1, 2004       5,000,000
LTII-SB (9)        140,000,000          (3)        Feb. 1, 2004      10,000,000
LTII-SB (10)       130,000,000          (3)        March 1, 2004    130,000,000
LTII-PF-IO               (4)            (4)             N/A         N/A

      (1)   For the Distribution Date related to the Due Period immediately
            preceding the Rate Change Date.

      (2)   The Principal Balance of the LTII-1 Principal balance equal to the
            principal balance of the REMIC I Regular Interests less
            $200,000,000.00, which is the aggregate principal balance of the
            Class LTII-SB Regular Interests Regular Interest.

      (3)   The LTII-A interest and each LTII-SB interest shall bear interest
            based on the REMIC Weighted Average Net Mortgage Rate.

      (4)   The LTII-PF-IO shall be entitled to 100% of the amount received with
            respect to the Class LTI-PF-IO Interest issued by REMIC I.

      On each Distribution Date, all Realized Losses and all payments of
principal payments from the Mortgage Loans will be allocated to the Class LTII-A
until such Class is reduced to zero. After the Class LTII-A is reduced to zero,
all Realized Losses and all payments

                                      -36-
<PAGE>

of principal from the Mortgage Loans will be made to the outstanding Class of
the Class LTII-SB Regular Interests with the lowest numerical denomination until
such Class is reduced to zero. For purposes of applying these rules, principal
payments from the Mortgage Loans shall be treated as any payment from the
Mortgage Loans that result in a reduction of the principal of the Mortgage Loan
during the Due Period.

REMIC III:

      The REMIC III Regular Interests, each of which is hereby designated a
regular interest in REMIC III, shall have the following principal balances,
pass-through rates and Corresponding Classes of Certificates in the manner set
forth in the following table:

<TABLE>
<CAPTION>
                                                                                    Corresponding Class
                                                                                      of Master REMIC
   REMIC Interests              Initial Balance                Interest Rate              Interest
   ---------------              ---------------                -------------         ------------------
<S>                   <C>                                  <C>                             <C>
     LTIII-A1 (1)     1/2 Corresponding Class balance      REMIC Net WAC Rate              A-1
     LTIII-A2 (1)     1/2 Corresponding Class balance      REMIC Net WAC Rate              A-2
     LTIII-A3 (1)     1/2 Corresponding Class balance      REMIC Net WAC Rate              A-3
     LTIII-A4 (1)     1/2 Corresponding Class balance      REMIC Net WAC Rate              A-4
     LTIII-A5 (1)     1/2 Corresponding Class balance      REMIC Net WAC Rate              A-5
     LTIII-A6 (1)     1/2 Corresponding Class balance      REMIC Net WAC Rate              A-6
     LTIII-M1 (1)     1/2 Corresponding Class balance      REMIC Net WAC Rate              M-1
     LTIII-M2 (1)     1/2 Corresponding Class balance      REMIC Net WAC Rate              M-2
     LTIII-B (1)      1/2 Corresponding Class balance      REMIC Net WAC Rate               B
    LTIII-Accrual
       Interest                       (2)                  REMIC Net WAC Rate              N/A
      LTIII-AIOs                      (3)                           (3)                    N/A
     LTIII-PF-IO                      (4)                           (4)                    N/A
</TABLE>

      (1)   REMIC III Accretion Directed Class.

      (2)   An amount equal to the aggregate Principal Balances of the REMIC II
            Regular Interests less an amount equal to the aggregate Principal
            Balances of the REMIC III Regular Interests.

      (3)   The LTIII-AIOs represent 10 separate REMIC Regular Interests:
            LTIII-AIO(1), LTIII-AIO(2), LTIII-AIO(3), LTIII-AIO(4),
            LTIII-AIO(5), LTIII-AIO(6), LTIII-AIO(7), LTIII-AIO(8),
            LTIII-AIO(9), and LTIII-AIO(10). Each LTIII-AIO REMIC regular
            interest will not have a principal balance, but will have a notional
            balance that is equal to the principal balance of the LTII-SB
            Interest issued by REMIC II with the same parenthetical number (the
            "corresponding LTII-SB Interest"). The notional balance of each
            LTIII-AIO Interest shall be reduced to zero on the Rate Change Date
            of the corresponding LTII-SB Interest. Each LTIII-AIO Interest will
            have a rate per annum equal to from the Closing Date through the
            Rate Change Date of its corresponding LTII-SB

                                      -37-
<PAGE>

            Interest, equal to the lesser of: (i) 5% per annum and the REMIC
            Weighted Average Net Mortgage Rate, and thereafter, 0% per annum.

      (4)   The Class LTIII-PF-IO Interest will not have a principal balance,
            but will receive 100% of the amount received with respect to the
            Class LTII-PF-IO Interest issued by REMIC II.

      On each Distribution Date, 50% of the increase in the Overcollateralized
Amount will be payable as a reduction of the principal balances of the REMIC III
Accretion Directed Classes (each such Class will be reduced by an amount equal
to 50% of any increase in the Overcollateralized Amount that is attributable to
a reduction in the principal balance of its Corresponding Class) and will be
accrued and added to the principal balance of the LTIII Accrual Interest. On
each Distribution Date, the increase in the principal balance of the LTIII
Accrual Interest may not exceed interest accruals for such Distribution Date for
the LTIII Accrual Interest.

      All payments of principal from the Mortgage Loans shall be allocated 50%
to the LTIII-Accrual Interest, and 50% to the REMIC III Accretion Directed
Classes (in an amount equal to 50% of the principal amounts allocated to their
respective Corresponding Classes), until paid in full. Notwithstanding the
above, to the extent that payments allocated to the Class X-IO Certificates
issued by the Master REMIC that arise from a reduction in the Overcollateralized
Amount, the Class LTIII Accrual Interest shall be allocated principal payments
equal to such reduction (until paid in full). Realized losses shall be applied
so that after all distributions have been made on each Distribution Date (i) the
principal balances of each REMIC III Accretion Directed Class is equal to 50% of
the principal balance of its respective Corresponding Class, and (ii) the LTIII
Accrual Interest is equal to 50% of the aggregate principal balance of the
Mortgage Pool plus 50% of the Overcollateralized Amount. For purposes of
applying these rules principal payments from the Mortgage Loans shall be treated
as any payment from the Mortgage Loans that result in a reduction of the
principal of the Mortgage Loan during the Due Period.

Master REMIC:

      The following table sets forth characteristics of the Interests, each of
which is hereby designated as a "regular interest" in the Master REMIC:

                                 Original Certificate          Pass-Through
                                  Principal Balance                Rate
                                 --------------------          ------------
Class A-1                            294,000,000                   (1)
Class A-2                            213,000,000                   (1)
Class A-3                             58,000,000                   (1)
Class A-4                            114,000,000                   (1)
Class A-5                             33,050,000                   (1)
Class A-6                             94,000,000                   (1)
Class M-1                             54,050,000                   (1)
Class M-2                             42,300,000                   (1)
Class B                               37,600,000                   (1)
Class A-IO                                                         (2)
Class X-IO                                                         (3)

                                      -38-
<PAGE>

      (1)   The lesser of the related Pass-Through Rate and the REMIC Net WAC
            Rate. Any entitlement to REMIC Net WAC Rate Carryover Amounts
            (including Net WAC Rate Carryover Amounts) will not be an obligation
            of any REMIC created under this Agreement.

      (2)   The Class A-IO Certificates will be entitled to 100% of the interest
            distributions in respect of the 10 Class LTIII-AIO Interests.

      (3)   The Class X-IO Certificates will have a notional balance equal to
            the aggregate Stated Principal Balance of the Mortgage Loans. The
            initial interest rate of the Class X-IO Certificate shall be a rate
            sufficient to cause all net interest from the Mortgage Loans to
            accrue on the Class X-IO Certificate that is in excess of the
            amount of interest that accrues on the Class A Certificates, the
            Class A-IO Certificates, Class M Certificates, the Class B-IO
            Certificates and the Class LTIII-PF-IO. For each Distribution Date
            after the first Distribution Date, the Pass-Through Rate in respect
            of the Class X-IO Certificates will be the excess of: (i) the REMIC
            Net WAC Rate over (ii) the product of: (A) two and (B) the weighted
            average Pass-Through Rate of the REMIC III Interests, where the
            LTIII Accrual Interest is subject to a cap equal to zero and each
            REMIC III Accretion Directed Class is subject to a cap equal to
            the Pass-Through Rate on its Corresponding Class. The Class X-IO
            Certificates shall also be entitled to principal equal to the excess
            of the aggregate Stated Principal Balance of the Mortgage Loans as
            of the Cut-off Date over the aggregate Certificate Principal Balance
            of the Class A Certificates, Class M Certificates, and Class B as of
            the Closing Date. Such principal balance shall not bear interest. In
            addition the Class X-IO Certificates shall be entitled to 100% of
            the interest payments received with respect to the Class LTII-PF-IO
            Interest issued by REMIC III.

      The foregoing REMIC structure is intended to cause all of the cash from
the Mortgage Loans to flow through to the Master REMIC as cash flow on a REMIC
regular interest, without creating any shortfall--actual or potential (other
than for credit losses) to any REMIC regular interest. To the extent that the
structure is believed to diverge from such intention, the Master Servicer shall
resolve ambiguities to accomplish such result and shall to the extent necessary
rectify any drafting errors or seek clarification to the structure without
Certificateholder approval (but with guidance of counsel) to accomplish such
intention.

      SECTION 2.08. Intentionally Omitted.

      SECTION 2.09. Intentionally Omitted.

      SECTION 2.10. Intentionally Omitted.

      SECTION 2.11. Intentionally Omitted.

      SECTION 2.12. Miscellaneous REMIC Provisions.

      (a) The Holder of the Tax Matters Person Residual Interest in each REMIC
created hereunder is hereby designated as "tax matters person" as defined in the
REMIC Provisions with respect to the REMIC.

      (b) The Trust and each REMIC created hereunder shall, for federal income
tax purposes, maintain books on a calendar year basis and report income on an
accrual basis.

      (c) The Trustee shall cause each REMIC created hereunder to elect to be
treated as a REMIC under Section 860D of the Code. Any inconsistencies or
ambiguities in this

                                      -39-
<PAGE>

Agreement or in the administration of the Trust shall be resolved in a manner
that preserves the validity of such election to be treated as a REMIC. The
Trustee shall report all expenses of the Trust Estate to each REMIC created
hereunder.

      (d) The amount, if any, transferred to the Class R Certificate, shall be
appropriately accounted for by the REMIC Administrator as derived from the REMIC
created under this Agreement producing such distributable amounts. No such
amounts are expected to arise under this agreement.

      (e) The REMIC Administrator shall provide to the Internal Revenue Service
and to the person described in Section 860E(e)(3) and (6) of the Code the
information described in Treasury Regulation Section 1.860D-l(b)(5)(ii), or any
successor regulation thereto with respect to each REMIC created hereunder. Such
information will be provided in the manner described in Treasury Regulation
Section 1.860E-2(a)(5), or any successor regulation thereto.

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

      SECTION 3.01. Representations and Warranties Regarding CIT Consumer
Finance.

      CIT Consumer Finance represents and warrants that:

      (a) Organization and Good Standing. CIT Consumer Finance is a corporation
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization and has the corporate power to own its assets
and to transact the business in which it is currently engaged. CIT Consumer
Finance is duly qualified to do business as a foreign corporation and is in good
standing in each jurisdiction in which the character of the business transacted
by it or properties owned or leased by it requires such qualification and in
which the failure so to qualify would have a material adverse effect on the
business, properties, assets, or condition (financial or other) of CIT Consumer
Finance.

      (b) Authorization; Binding Obligations. CIT Consumer Finance has the power
and authority to make, execute, deliver and perform this Agreement and all of
the transactions contemplated under this Agreement, and has taken all necessary
corporate action to authorize the execution, delivery and performance of this
Agreement. When executed and delivered, this Agreement will constitute the
legal, valid and binding obligation of CIT Consumer Finance enforceable in
accordance with its terms, except as enforcement of such terms may be limited by
bankruptcy, insolvency or similar laws affecting the enforcement of creditors'
rights generally and by the availability of equitable remedies.

      (c) No Consent Required. CIT Consumer Finance is not required to obtain
the consent of any other party or any consent, license, approval or
authorization from, or registration or declaration with, any governmental
authority, bureau or agency in connection with the execution, delivery,
performance, validity or enforceability of this Agreement the failure of

                                      -40-
<PAGE>

which so to obtain would have a material adverse effect on the business,
properties, assets or condition (financial or otherwise) of CIT Consumer
Finance.

      (d) No Violations. The execution, delivery and performance of this
Agreement by CIT Consumer Finance will not violate any provision of any existing
law or regulation or any order or decree of any court or the Certificate of
Incorporation or Bylaws of CIT Consumer Finance, or constitute a material breach
of any mortgage, indenture, Mortgage Loan or other agreement to which CIT
Consumer Finance is a party or by which CIT Consumer Finance may be bound.

      (e) Litigation. No litigation or administrative proceeding of or before
any court, tribunal or governmental body is currently pending, or to the
knowledge of CIT Consumer Finance threatened, against CIT Consumer Finance or
any of its properties or with respect to this Agreement or the Certificates
which, if adversely determined, would in the opinion of CIT Consumer Finance
have a material adverse effect on the transactions contemplated by this
Agreement.

      SECTION 3.01A. Representations and Warranties Regarding The Conduit
Seller.

      The Conduit Seller represents and warrants that:

      (a) Organization and Good Standing. The Conduit Seller is a limited
liability company duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization and has the limited liability
company power to own its assets and to transact the business in which it is
currently engaged. The Conduit Seller is duly qualified to do business and is in
good standing in each jurisdiction in which the character of the business
transacted by it or properties owned or leased by it requires such qualification
and in which the failure so to qualify would have a material adverse effect on
the business, properties, assets, or condition (financial or otherwise) of the
Conduit Seller.

      (b) Authorization; Binding Obligations. The Conduit Seller has the power
and authority to make, execute, deliver and perform this Agreement and all of
the transactions contemplated under this Agreement, and has taken all necessary
limited liability company action to authorize the execution, delivery and
performance of this Agreement. When executed and delivered, this Agreement will
constitute the legal, valid and binding obligation of the Conduit Seller
enforceable in accordance with its terms, except as enforcement of such terms
may be limited by bankruptcy, insolvency or similar laws affecting the
enforcement of creditors' rights generally and by the availability of equitable
remedies.

      (c) No Consent Required. The Conduit Seller is not required to obtain the
consent of any other party or any consent, license, approval or authorization
from, or registration or declaration with, any governmental authority, bureau or
agency in connection with the execution, delivery, performance, validity or
enforceability of this Agreement the failure of which so to obtain would have a
material adverse effect on the business, properties, assets or condition
(financial or otherwise) of the Conduit Seller.

                                      -41-
<PAGE>

      (d) No Violations. The execution, delivery and performance of this
Agreement by the Conduit Seller will not violate any provision of any existing
law or regulation or any order or decree of any court or the organizational
documents of the Conduit Seller, or constitute a material breach of any
mortgage, indenture, Mortgage Loan or other agreement to which the Conduit
Seller is a party or by which the Conduit Seller may be bound.

      (e) Litigation. No litigation or administrative proceeding of or before
any court, tribunal or governmental body is currently pending, or to the
knowledge of The Conduit Seller threatened, against The Conduit Seller or any of
its properties or with respect to this Agreement or the Certificates which, if
adversely determined, would in the opinion of The Conduit Seller have a material
adverse effect on the transactions contemplated by this Agreement.

      SECTION 3.02. Representations and Warranties Regarding Each Mortgage Loan.

      CIT Consumer Finance as Seller with respect to the Seller Mortgage Loans
and as Master Servicer, in consideration of its appointment hereunder, with
respect to the Conduit Mortgage Loans and with respect to the Mortgage Loans
taken as a whole, represents and warrants to the Trust, the Depositor and the
Certificateholders as to each Initial Mortgage Loan as of the Closing Date and
as to each Subsequent Mortgage Loan as of the related Subsequent Transfer Date
(except as otherwise expressly stated):

      (a) List of Mortgage Loans. The information set forth in the List of
Initial Mortgage Loans or the List of Subsequent Mortgage Loans, as applicable,
is true and correct as of its date.

      (b) Payments. With respect to each Mortgage Loan, as of the related
Cut-Off Date, the scheduled payment due in the month immediately preceding such
Cut-Off Date was made by or on behalf of the Mortgagor (without any advance from
CIT Consumer Finance or any Person acting at the request of CIT Consumer
Finance) or was not delinquent for more than 60 days.

      (c) No Waivers. The terms of the Mortgage Loan have not been waived,
altered or modified in any respect, except by instruments or documents
identified in the File with respect thereto.

      (d) Binding Obligation. The Mortgage Loan is the legal, valid and binding
obligation of the Mortgagor thereunder and is enforceable in accordance with its
terms, except as such enforceability may be limited by (i) applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
similar laws from time to time in effect affecting generally the enforcement of
creditors' rights and remedies; and (ii) general principles of equity,
including, without limitation, principles of reasonableness, good faith and fair
dealing (regardless of whether enforcement is sought in equity or at law).

      (e) No Defenses. No right of rescission, setoff, counterclaim or defense,
including the defense of usury, has been asserted with respect to the Mortgage
Loan.

                                      -42-
<PAGE>

      (f) Insurance. The related Mortgaged Property is covered by a Hazard
Insurance Policy in the amount required by Section 5.09. All premiums due as of
the Closing Date on such insurance have been paid in full.

      (g) Flood Insurance. If the related Mortgaged Property was, according to
the related appraisal, in a federally designated special flood hazard area, the
related Mortgage Property is covered by flood insurance in the amount required
by Section 5.09. All premiums due as of the Closing Date on such insurance have
been paid in full.

      (h) Lawful Assignment. The Mortgage Loan was not originated in and is not
subject to the laws of any jurisdiction whose laws would make the transfer of
the Mortgage Loan to the Depositor and to the Trustee under this Agreement, or
the ownership of the Mortgage Loan by the Trust, unlawful.

      (i) Compliance with Law. All requirements of any federal, state or local
law, including, without limitation, usury, truth in lending, the Real Estate
Settlement Procedures Act and equal credit opportunity laws, applicable to the
Mortgage Loan have been complied with and such compliance is not affected by the
transfer of the Mortgage Loan to the Depositor or to the Trustee or by the
Trust's ownership of the Mortgage Loans, and CIT Consumer Finance shall for at
least the period of this Agreement, maintain in its possession, available for
the Trustee's inspection, and shall deliver to the Trustee upon demand, evidence
of compliance with all such requirements.

      (j) Mortgage Loan in Force. The Mortgage Loan has not been satisfied or
rescinded, and the related Mortgaged Property has not been released from the
lien of the Mortgage Loan in whole or in part.

      (k) Capacity of Parties. All parties to the Mortgage Loan had legal
capacity to execute the Mortgage Loan.

      (l) Good Title. Neither the Seller nor the Conduit Seller has sold,
assigned or pledged the Mortgage Loan to any person other than the Depositor.
Prior to the transfer of the Mortgage Loan by the Seller or the Conduit Seller
to the Depositor and by the Depositor to the Trust, the Seller or the Conduit
Seller, respectively, had good and marketable title thereto free and clear of
any encumbrance, equity, loan, pledge, charge, claim or security interest and
was the sole owner thereof with full right to transfer the Mortgage Loan to the
Depositor or the Trust, respectively. The Depositor paid fair value to the
Seller or the Conduit Seller for the Mortgage Loan. Immediately upon the
transfer thereof, the Trust for the benefit of the Certificateholders shall
acquire good and marketable title to each Mortgage Loan free and clear of any
encumbrance, equity, loan, pledge, charge, claim or security interest.

      (m) No Defaults. As of the related Cut-Off Date, there was no default,
breach, violation or event permitting acceleration existing under the Mortgage
Loan and no event which, with notice and the expiration of any grace or cure
period, would constitute such a default, breach, violation or event permitting
acceleration under such Mortgage Loan (except payment delinquencies permitted by
clause (b) above). Neither the Seller nor the Conduit Seller has

                                      -43-
<PAGE>

waived any such default, breach, violation or event permitting acceleration
except payment delinquencies permitted by clause (b) above.

      (n) No Liens. As of the Closing Date, in the case of each Initial Mortgage
Loan, or as of the related Subsequent Transfer Date, in the case of each
Subsequent Mortgage Loan, there are, to the best of CIT Consumer Finance's
knowledge, no liens or claims which have been filed for work, labor or materials
affecting the related Mortgaged Property which are or may be liens prior to, or
equal or coordinate with, the lien of the Mortgage Loan (other than a senior
Mortgage in the case of a Mortgaged Property secured by a subordinate Mortgage).

      (o) Enforceability. The Mortgage Loan contains customary and enforceable
provisions such as to render the rights and remedies of the holder thereof
adequate for the realization against the collateral of the benefits of the
security provided thereby, except as enforceability of such provisions may be
limited by bankruptcy, insolvency or similar laws affecting the enforcement of
creditors' rights generally and by the availability of equitable remedies.

      (p) Qualified Mortgage for REMIC. Each Mortgage Loan is a "qualified
mortgage" under Section 860G(a)(3) of the Code and the Treasury Regulations
thereunder. As of the Initial Cut-Off Date, in the case of the Initial Mortgage
Loans, and as of the related Subsequent Cut-Off Date, in the case of each
Subsequent Mortgage Loan, the Mortgage Loan was 59 days or less delinquent, was
not in foreclosure nor did CIT Consumer Finance consider acceleration and
liquidation of such Mortgage Loan to be reasonably foreseeable. As of the
Closing Date, with respect to the Initial Mortgage Loans, the fair market value
of the interest in real property securing each Initial Mortgage Loan (i) was at
least equal to 80 percent of the adjusted issue price of the obligation at the
time the obligation was originated (or, if later, but before the Closing Date,
the time the obligation was significantly modified, as such term is defined in
Treasury Regulations ss. 1.860G-2(b)(2)); or (ii) is at least equal to 80
percent of the adjusted issue price of the obligation on the Closing Date. As of
the related Subsequent Transfer Date, with respect to the Subsequent Mortgage
Loans, the fair market value of the interest in real property securing each
Subsequent Mortgage Loan (i) was at least equal to 80 percent of the adjusted
issue price of the obligation at the time the obligation was originated (or, if
later, but before the Subsequent Transfer Date, the time the obligation was
significantly modified, as such term is defined in Treasury Regulations ss.
1.860G-2(b)(2)); or (ii) is at least equal to 80 percent of the adjusted issue
price of the obligation on the Subsequent Transfer Date.

      For purposes of this Section 3.02(p), the fair market value of the real
property interest must be first reduced by the amount of any lien on the real
property interest that is senior to the obligation being tested, and must be
further reduced by a proportionate amount of any lien that is in parity with the
obligation being tested, in each case before the percentages set forth in (i)
and (ii) above are determined. The adjusted issue price of an obligation is its
issue price plus the amount of accrued original issue discount, if any, as of
the date of determination.

      (q) Conventional Mortgage Loans. None of the Mortgage Loans is insured or
guaranteed by any governmental agency.

                                      -44-
<PAGE>

      (r) Lien. Each Mortgage is a valid and subsisting first or subordinate
lien of record on the Mortgaged Property subject to the exceptions to title set
forth in any title insurance policy or attorney's opinion of title with respect
to the related Mortgage Loan, which exceptions are generally acceptable to
banking institutions in connection with their regular mortgage lending
activities, and such other exceptions to which similar properties are commonly
subject and which do not individually, or in the aggregate, materially and
adversely affect the benefits of the security intended to be provided by such
Mortgage.

      (s) Recordation. Each original Mortgage was recorded or is in the process
of being recorded, in the appropriate jurisdictions wherein such recordation is
necessary to perfect the lien thereof as against creditors of or purchasers from
the Seller delivering the related Mortgage Loan.

      (t) Deed of Trust. With respect to each Mortgage constituting a deed of
trust, a trustee, duly qualified under applicable law to serve as such, has been
properly designated and currently so serves and is named in such Mortgage, and
no fees or expenses are or will become payable by the Holders or the Trust to
the trustee under the deed of trust, except in connection with a trustee's sale
after default by the related Mortgagor.

      (u) Licenses. The Trust is in compliance with any and all license, permit
and other requirements of any federal or state law applicable to its ownership
of the Mortgage Loan and its exercise of rights under the Mortgage Loan and this
Agreement. The Trust is not required to obtain the consent of any other party or
any consent, license, approval or authorization from, or registration or
declaration with, any governmental authority, bureau or agency in connection
with the execution, delivery, performance, validity or enforceability of this
Agreement the failure of which so to obtain would have a material adverse effect
on the Trust.

      (v) Manufactured Housing. In the case of a Mortgage Loan financing a
dwelling which is a manufactured home, (i) the manufactured home is affixed to
the real property in such a manner as to render the manufactured home real
property under the laws of the jurisdiction in which it is located, (ii) the
Mortgage is a lien on the land on which the manufactured home is located as well
as the manufactured home itself, and (iii) the manufactured home (a) has a
minimum of 400 square feet of living space, (b) has a minimum width in excess of
102 inches and (c) is of a kind customarily used at a fixed location.

      (w) Underwriting Guidelines. Each Mortgage Loan was underwritten in
accordance with the policies and procedures set forth in the Base Prospectus.

      (x) Combined Loan-to-Value Ratio. At the time of its origination (and, in
the case of a Mortgage Loan that has been modified, at the time of origination
and at the time such Mortgage Loan was modified), no Mortgage Loan had a
Combined Loan-to-Value Ratio of greater than 100%.

      (y) Mortgagor Not Subject to Bankruptcy Proceedings. No Mortgagor is in a
bankruptcy proceeding as of the related Cut-Off Date.

                                      -45-
<PAGE>

      (z) Condition of Mortgaged Property. To the best of its knowledge, each
Mortgaged Property is free of material damage and is in good repair.

      (aa) [Reserved]

      (bb) [Reserved]

      (cc) HOEPA. As of the related Cut-Off Date, no Mortgage Loan was subject
to the Home Ownership and Equity Protection Act of 1994 or any comparable state
law.

      (dd) No Single Premium Insurance. No proceeds from any Mortgage Loan were
used to finance single-premium credit, life and disability insurance policies.

      (ee) Prepayment Charges. No Mortgage Loan imposes a prepayment charge for
an original term in excess of five years.

      (ff) Supervised Lender. All of the Mortgage Loans were originated by a
mortgagee approved by the Secretary of Housing and Urban Development pursuant to
sections 203 and 211 of the National Housing Act, or a savings and loan
association, a savings bank, a commercial bank, a credit union, an insurance
company or other similar institution which is supervised and examined by a
federal or state authority.

      SECTION 3.03. Representations and Warranties Regarding the Mortgage Loans
in the Aggregate.

      CIT Consumer Finance as Seller with respect to the Seller Mortgage Loans
and as Master Servicer, in consideration of its appointment hereunder, with
respect to the Conduit Mortgage Loans and with respect to the Mortgage Loans
taken as a whole, represents and warrants to the Trustee, the Depositor and the
Certificateholders that:

      (a) Characteristics. As of the Closing Date, each Initial Mortgage Loan
individually and the Initial Mortgage Loans in the aggregate conform in all
material respects to the description thereof in the Prospectus Supplement.

      (b) Computer Tape. As of Closing Date, in the case of the Initial Mortgage
Loans, and as of the related Subsequent Transfer Date, in the case of the
Subsequent Mortgage Loans, the Computer Tape made available by the Master
Servicer was complete and accurate as of its date and includes a description of
the same Mortgage Loans that are described in the List of Initial Mortgage Loans
or the List of Subsequent Mortgage Loans, as applicable.

      (c) Marking Records. By the Closing Date, in the case of the Initial
Mortgage Loans, and as of the related Subsequent Transfer Date, in the case of
the Subsequent Mortgage Loans, CIT Consumer Finance has caused the portions of
the Electronic Ledger relating to the Mortgage Loans constituting part of the
Trust to be clearly and unambiguously marked to indicate that such Mortgage
Loans constitute part of the Trust and are owned by the Trust in accordance with
the terms of the trust created hereunder.

                                      -46-
<PAGE>

      (d) No Adverse Selection. Except for the effect of the representations and
warranties made in Sections 3.02 and 3.03 hereof, no adverse selection
procedures have been employed in selecting the Mortgage Loans.

      SECTION 3.04. Representations and Warranties Regarding the Files.

      CIT Consumer Finance represents and warrants to the Trustee, the Depositor
and the Certificateholders that:

      (a) Possession. Immediately prior to the Closing Date, in the case of the
Initial Mortgage Loans (excluding the Delayed Delivery Mortgage Loans), within
20 days after the Closing Date, in the case of the Delayed Delivery Mortgage
Loans, or immediately prior to the Subsequent Transfer Date, in the case of the
Subsequent Mortgage Loans, either the Seller or the Conduit Seller, as
applicable, or the Custodian on behalf of the Seller or the Conduit Seller, will
have possession of each original Mortgage Loan and the related File, and there
are and there will be no custodial agreements in effect materially and adversely
affecting the right of either the Seller or the Conduit Seller, as applicable,
to make, or to cause to be made, delivery of the Files required in connection
with the conveyance of the Mortgage Loans to the Depositor.

      (b) Bulk Transfer Laws. As of the Closing Date, in the case of the Initial
Mortgage Loans, or the Subsequent Transfer Date, in the case of the Subsequent
Mortgage Loans, the transfer, assignment and conveyance of the Mortgage Loans
and the Files with respect thereto to the Depositor are not subject to the bulk
transfer or any similar statutory provisions in effect in any applicable
jurisdiction.

      SECTION 3.05. Repurchase of Mortgage Loans or Substitution of Mortgage
Loans for Breach of Representations and Warranties.

      (a) Subject to Section 3.05(b), CIT Consumer Finance shall repurchase a
Mortgage Loan, at its Purchase Price, not later than 85 days after CIT Consumer
Finance receives written notice from the Trustee or the Master Servicer, or not
later than 90 days after CIT Consumer Finance otherwise becomes aware, of a
material breach of any representation or warranty of CIT Consumer Finance set
forth in Section 3.02 or 3.03 of this Agreement that materially and adversely
affects the interests of the Certificateholders in such Mortgage Loan and which
breach has not been cured. Upon discovery by the Master Servicer of a material
breach of a representation with respect to the Mortgage Loans, the Master
Servicer will promptly notify the Trustee and the Sellers. Upon discovery by the
Trustee of a material breach of a representation with respect to the Mortgage
Loans, the Trustee will promptly notify the Master Servicer and the Sellers. CIT
Consumer Finance shall effect such repurchase by paying to the Master Servicer
for deposit in the Certificate Account on the Business Day immediately preceding
the Distribution Date in the month following the month in which the loan was
repurchased, the aggregate of the Purchase Price of all Mortgage Loans that are
required to be repurchased pursuant to the preceding sentence. Notwithstanding
any other provision of the Agreement, the obligation of CIT Consumer Finance
under this Section shall not terminate upon a Service Transfer pursuant to
Article VII.

                                      -47-
<PAGE>

      CIT Consumer Finance shall, subject to this Section 3.05, repurchase such
Mortgage Loan or substitute a Qualified Substitute Mortgage Loan and shall
guarantee the payment of any tax imposed under the REMIC Provisions as a result
of such repurchase or substitution by paying to the Trustee the amount of such
tax not later than five Business Days before such tax shall be due and payable
to the extent that amounts previously paid over to and then held by the Trustee
pursuant to Section 5.10 hereof are insufficient to pay such tax and all other
taxes chargeable under Section 5.10. Pursuant to Section 5.10, the Master
Servicer is hereby directed to withhold, and shall withhold and pay over to the
Trustee, an amount sufficient to pay such tax and any other taxes imposed on
"prohibited transactions" under Section 860F(a)(1) of the Code or imposed on
"contributions after start up date" under Section 860G(d) of the Code from
amounts otherwise distributable to the Private Certificateholders. The Master
Servicer shall give notice to the Trustee at the time of such repurchase of the
amounts due from CIT Consumer Finance pursuant to the guarantee of CIT Consumer
Finance and notice as to who should receive such payment.

      The Trustee shall have no obligation to pay any such amounts pursuant to
this Section other than from moneys provided to it by CIT Consumer Finance or
from moneys held in the funds and accounts created under this Agreement. The
Trustee shall be deemed conclusively to have complied with this Section if it
follows the directions of CIT Consumer Finance.

      In the event any tax that is guaranteed by CIT Consumer Finance is
refunded to the Trust or otherwise is determined not to be payable, CIT Consumer
Finance shall be repaid the amount of such refund or that portion of any
guarantee payment made by CIT Consumer Finance that is not applied to the
payment of such tax.

      It is understood and agreed that the conveyance set forth in this Section
3.05 shall inure to the benefit of the Trustee and the Certificateholders.

      (b) On or prior to the date that is the second anniversary of the Closing
Date, CIT Consumer Finance, at its election, may substitute a Qualified
Substitute Mortgage Loan for a Mortgage Loan that it is obligated to repurchase
pursuant to Section 3.05(a) (such Mortgage Loan being referred to as the
"Replaced Mortgage Loan") upon satisfaction of the following conditions:

            (i) CIT Consumer Finance shall have conveyed to the Trustee the
      Mortgage Loan to be substituted for the Replaced Mortgage Loan and the
      File related to such Mortgage Loan and CIT Consumer Finance shall have
      marked the Electronic Ledger indicating that such Mortgage Loan
      constitutes part of the Trust;

            (ii) the Mortgage Loan to be substituted for the Replaced Mortgage
      Loan is a Qualified Substitute Mortgage Loan and CIT Consumer Finance
      delivers an Officer's Certificate, substantially in the form of Exhibit K
      hereto, to the Trustee certifying that such Mortgage Loan is a Qualified
      Substitute Mortgage Loan;

            (iii) CIT Consumer Finance shall have delivered to the Trustee an
      Opinion of Counsel to the effect that the substitution of such Mortgage
      Loan for such Replaced Mortgage Loan will not cause any of the REMICs to
      fail to qualify as a

                                      -48-
<PAGE>

      REMIC at any time under then applicable REMIC Provisions or cause any
      "prohibited transaction" that will result in the imposition of a tax under
      such REMIC Provision;

            (iv) if the Principal Balance of such Replaced Mortgage Loan is
      greater than the Principal Balance of the Mortgage Loan being substituted,
      CIT Consumer Finance shall have deposited in the Certificate Account the
      amount of such excess, plus accrued and unpaid interest (the "Substitution
      Adjustment") and shall have included in the Officer's Certificate required
      by clause (ii) above a certification that such deposit has been made; and

            (v) CIT Consumer Finance shall have delivered to the Rating Agencies
      prior written notice of such substitution, with a copy of such notice
      delivered to the Trustee.

Upon satisfaction of such conditions, the Trustee shall add such Mortgage Loan
to, and delete such Replaced Mortgage Loan from, the List of Mortgage Loans.
Such substitution shall be effected prior to the expiration of the period in
which CIT Consumer Finance is otherwise obligated to repurchase such Replaced
Mortgage Loan pursuant to Section 3.05(a). Promptly after any substitution of a
Mortgage Loan, CIT Consumer Finance shall give written notice of such
substitution to the Rating Agencies.

      (c) Promptly after the repurchase referred to in Section 3.05(a) or the
substitution referred to in Section 3.05(b), the Trustee shall execute such
documents in proper form as are presented to it by CIT Consumer Finance and are
reasonably necessary to reconvey the repurchased Mortgage Loan or Replaced
Mortgage Loan, as the case may be, to CIT Consumer Finance and deliver the
related File to CIT Consumer Finance.

      (d) The repurchase obligation of CIT Consumer Finance set forth in this
Section 3.05 shall constitute the sole remedy available to the Trustee and the
Certificateholders for a breach of representation and warranty hereunder with
respect to the Mortgage Loans (but not with respect to any other breach by CIT
Consumer Finance of its obligations hereunder, as set forth herein).

      SECTION 3.06. Conditions of Closing for the Subsequent Mortgage Loans.

      In connection with the transfer of any Subsequent Mortgage Loans to the
Trust, the following conditions shall have been satisfied on the related
Subsequent Transfer Date:

      (a) As of the applicable Subsequent Cut-Off Date, each Subsequent Mortgage
Loan shall satisfy the following criteria:

            (i) the Subsequent Mortgage Loan shall not be 30 or more days
      delinquent as of the related Subsequent Cut-Off Date;

            (ii) no Subsequent Mortgage Loan will have a remaining term of less
      than 56 months or greater than 360 months from its first payment date;

                                      -49-
<PAGE>

            (iii) no Subsequent Mortgage Loan will have a combined loan-to-value
      ratio greater than 100%;

            (iv) no Subsequent Mortgage Loan shall have a Mortgage Rate less
      than 5.51% (6.00% for any Mortgage Loan that accrues interest using the
      simple interest method) or greater than 14.00%;

            (v) no Subsequent Mortgage Loan, to the extent a FICO score for such
      Subsequent Mortgage Loan is available, shall have a FICO score less than
      500;

            (vi) the Subsequent Mortgage Loan shall have been serviced by the
      Master Servicer since origination or purchase by either Seller in
      accordance with its standard servicing practices;

            (vii) the Subsequent Mortgage Loan must have an interest start date
      occurring on or before the Business Day immediately preceding the
      Distribution Date in June 2003;

            (viii) the Subsequent Mortgage Loan shall have been underwritten in
      accordance with the policies and procedures set forth in the Base
      Prospectus; and

            (ix) no Subsequent Mortgage Loan will be originated in the state of
      Georgia; and

            (x) no Subsequent Mortgage Loan shall have a Principal Balance in
      excess of $798,743.33 as of the related Cut-Off Date.

      (b) Following the transfer of any Subsequent Mortgage Loans to the Trust,
the Mortgage Loans shall, as of the related Subsequent Cut-Off Date:

            (i) have a weighted average age since origination of not more than
      five months;

            (ii) have a weighted average original term of not more than 360
      months from the first payment date thereon;

            (iii) have a weighted average Mortgage Rate of not less than 8.00%
      and not more than 8.36%;

            (iv) have a combined weighted average loan-to-value ratio of not
      more than 79.11%; provided that the percentage of Mortgage Loans in the
      Mortgage Pool that have a combined loan-to-value ratio greater than 80%
      shall not exceed 45% of the Mortgage Pool; and provided further that the
      weighted average FICO score of the Mortgage Loans in the Mortgage Pool
      (excluding Mortgage Loans for which no FICO score is available) with a
      combined loan-to-value ratio greater than 80% shall not be less than 634;

                                      -50-
<PAGE>

            (v) not include second lien Mortgage Loans in an amount exceeding
      12% of the Mortgage Pool;

            (vi) have a weighted average FICO score (excluding Mortgage Loans
      for which no FICO score is available) of not less than 625; provided that
      the percentage of Mortgage Loans in the Mortgage Pool with a FICO score
      (excluding Mortgage Loans for which no FICO score is available) that is
      less than 600 shall not exceed 37% of the Mortgage Pool;

            (vii) not have a state concentration that is greater than 20% of the
      Mortgage Pool; and

            (viii) have property type, occupancy status, debt-to-income, and
      documentation type that does not vary by more than 1% from the Mortgage
      Pool as of the Initial Cut-Off Date.

      (c) On or prior to any Subsequent Transfer Date, the following conditions
shall have been satisfied with respect to all Subsequent Mortgage Loans to be
transferred to the Trust on such Subsequent Transfer Date:

            (i) the Depositor shall have confirmed to the Rating Agencies, the
      Master Servicer, the Representative and the Trustee, in the related
      Subsequent Transfer Agreement, the satisfaction of each condition
      precedent specified in Section 2.03 and Section 3.06;

            (ii) the Seller shall have delivered to the Depositor, the
      Representative and the Trustee an Opinion of Counsel with respect to the
      transfer of all of the Subsequent Mortgage Loans to the Trust on such
      Subsequent Transfer Date substantially in the form of opinion attached as
      Exhibit B to the form of Subsequent Purchase Agreement attached as Exhibit
      L hereto;

            (iii) the Trustee shall deliver to the Rating Agencies, the
      Representative and the Depositor an Opinion of Counsel with respect to the
      enforceability of each of the Subsequent Transfer Agreements substantially
      in the form of the Opinion of Counsel delivered by the Trustee on the
      Closing Date; and

            (iv) the Seller shall represent and warrant that the Subsequent
      Mortgage Loans satisfy the criteria set forth in this Section 3.06.

                                   ARTICLE IV

           DELIVERY OF MORTGAGE DOCUMENTS; CUSTODY OF MORTGAGE LOANS;
                            RECORDATION OF MORTGAGES

      SECTION 4.01. Delivery of Mortgage Documents; Custody of Mortgage Loans.

                                      -51-
<PAGE>

      (a) CIT Consumer Finance shall deliver or cause to be delivered to the
Trustee or the Custodian as designee of the Trustee on the Closing Date, with
respect to each Initial Mortgage Loan (except that, in the case of any Delayed
Delivery Mortgage Loans, such delivery may take place within twenty (20) days
following the Closing Date), or the related Subsequent Transfer Date, with
respect to each Subsequent Mortgage Loan, the original Note endorsed in blank
(and any modification or amendment thereto), the original Mortgage with evidence
of recording indicated thereon (except for any Mortgage which has been lost or
which was not returned from the public recording office, a copy of which
(together with a certificate that the original of such Mortgage was delivered to
such recording office) shall be delivered initially and the original of which
shall be delivered to the Trustee or the Custodian as designee of the Trustee as
soon as the same is available to CIT Consumer Finance), assignments in blank of
the related Mortgage in recordable form and, if applicable, any riders or
modifications to such Note and Mortgage, any title insurance documents (which
may be evidenced by title insurance policies, binders, title commitments, title
reports or other indicia of title insurance provided by the title insurance
company) with respect to such Mortgage and any assumption or modification
agreement (collectively, the "Mortgage Documents"). The Trustee shall cause the
Custodian, on the Closing Date and any Subsequent Transfer Date, to deliver to
the Trustee and the Master Servicer a Receipt of Notes pursuant to the Custodial
Agreement.

      For certain Mortgage Loans transferred by the Depositor to the Trust, CIT
Consumer Finance may deliver to the Trustee or the Custodian as designee of the
Trustee, in lieu of the original Note, (i) a new promissory note signed by the
borrower confirming its obligation under the original Note (a "Confirmatory
Note"), or (ii) an affidavit of the Seller or the Conduit Seller, as applicable,
certifying that such Person or the Depositor was the sole owner of the
indebtedness evidenced by such note and the original thereof has been lost or
destroyed. CIT Consumer Finance hereby indemnifies the Trustee on behalf of the
Certificateholders and the Trust against any loss, liability, damage, claim or
expense resulting from CIT Consumer Finance's failure to deliver to the Trustee
or its designee the original Note or Confirmatory Note. Such indemnification
shall be terminated with respect to such Note or Confirmation Note if CIT
Consumer Finance subsequently delivers the original Note or a Confirmatory Note.
If CIT Consumer Finance delivers such a lost note affidavit or fails to deliver
any assumption and modification agreement, within 90 days after the Closing
Date, it shall deliver to the Trustee or the Custodian as designee of the
Trustee either the original Note or Confirmatory Note and assumption and
modification agreement, as applicable, or an Opinion of Counsel satisfactory to
the Trustee from counsel admitted to practice in the jurisdiction in which the
related Mortgaged Property is located to the effect that the absence of the
originals of such documents will not preclude the Master Servicer from
initiating or prosecuting to completion any foreclosure proceeding with respect
to such Mortgaged Property. If CIT Consumer Finance does not deliver such
documents or an Opinion of Counsel within such 90-day period, it shall be
required to use its best reasonable efforts to substitute another Mortgage Loan
or, if it is unable to make such substitution, to repurchase the original
Mortgage Loan at the Purchase Price, in each case in accordance with the
procedures and requirements of Section 3.05(b).

      Notwithstanding anything to the contrary in this Section 4.01, within
twenty days after the Closing Date, CIT Consumer Finance shall either (i)
deliver to the Depositor, or at the Depositor's direction, to the Trustee or the
Custodian, on behalf of the Trustee, or other designee

                                      -52-
<PAGE>

of the Depositor the File as required pursuant to this Section 4.01 for each
Delayed Delivery Mortgage Loan or (ii) (A) substitute a Qualified Substitute
Mortgage Loan for the Delayed Delivery Mortgage Loan or (B) repurchase the
Delayed Delivery Mortgage Loan, which substitution or repurchase shall be
accomplished in the manner and subject to the conditions set forth in Section
3.05; provided, however, that if CIT Consumer Finance fails to deliver a File
for any Delayed Delivery Mortgage Loan within the twenty-day period provided
above, CIT Consumer Finance shall use its best reasonable efforts to effect a
substitution, rather than a repurchase of, such Delayed Delivery Mortgage Loan
and provided further that the cure period provided in Section 4.03(a) shall not
apply to the initial delivery of the File for such Delayed Delivery Mortgage
Loan, but rather CIT Consumer Finance shall have five (5) Business Days to cure
such failure to deliver. At the end of such twenty-day period the Trustee shall
send a Delayed Delivery Certification for the Delayed Delivery Mortgage Loans in
the form attached as Exhibit F hereto, delivered during such twenty-day period
in accordance with the provisions of Section 4.01(b).

      (b) Subject to the terms and conditions of this Section 4.01, the Trustee,
pursuant to the Custodial Agreement, (i) shall act as custodian of the Files for
the benefit of the Certificateholders and (ii) at the end of the twenty (20) day
period after the Closing Date execute and deliver to the Depositor, the Servicer
and the Sellers a Delayed Delivery Certification with respect to the Delayed
Delivery Mortgage Loans in the form attached as Exhibit F hereto, with any
applicable exceptions noted thereon.

      (c) The Trustee agrees, in its capacity as Custodian pursuant to the
Custodial Agreement, to maintain the related Files at one of its offices as the
Trustee and the Master Servicer may from time to time agree.

      (d) As Custodian, the Trustee shall have and perform the following powers
and duties:

            (i) hold the Files on behalf of the Certificateholders, maintain
      accurate records pertaining to each Mortgage Loan to enable the Master
      Servicer to comply with the terms and conditions of this Agreement,
      maintain a current inventory thereof, conduct periodic physical
      inspections of the Files held by it under this Agreement and certify in
      writing to the Master Servicer upon request that it continues to maintain
      possession of such Files;

            (ii) implement policies and procedures with respect to persons
      authorized to have access to the Files and the receipting for Files taken
      from their storage area by a Servicing Officer for purposes of servicing
      or any other purposes;

            (iii) maintain custody of the Files on behalf of the
      Certificateholders; and

            (iv) make originals of any document in the Files available to the
      Master Servicer to enforce the Mortgage Loans.

                                      -53-
<PAGE>

      (e) In performing its duties under the Custodial Agreement and this
Section 4.01, the Trustee agrees to exercise that degree of skill and care,
consistent with the same degree of skill and care that financial institutions
acting in comparable capacities would exercise or use under the circumstances in
the conduct of its own affairs with respect to similar Mortgage Loans. Subject
to Section 11.03, the Trustee, in performing its duties under this Section 4.01
and the Custodial Agreement, shall have liability for its own negligent action,
its own negligent failure to act or its own willful misconduct.

      SECTION 4.02. Recordation of Mortgages.

      (a) The Master Servicer will maintain a recorded first or subordinate
lien, as applicable, on each Mortgaged Property so long as the related Mortgage
Loan is the property of the Trust (except as it may be limited by the absence of
a duly recorded mortgage assignment). Within 90 days of the Closing Date or the
related Subsequent Transfer Date, as applicable, the Master Servicer will record
assignments to the Trust of the lien on any Mortgaged Property (or, where
permitted, assignments of the liens on any group of Mortgaged Properties), at
its sole expense, unless an opinion(s) of counsel is delivered by the Master
Servicer to the Trustee to the effect that recordation of an assignment is not
required to protect the interests of the Trustee in a Mortgage Loan and the
related Mortgaged Property or in a group of Mortgage Loans (and the related
Mortgage Properties). If, at a later date, the Trustee is advised by counsel to
the effect that recordation of an assignment is required to protect the
interests of the Trust in the Mortgage Loan or the related Mortgaged Property,
the Master Servicer will record such assignments to the Trust within sixty (60)
days, at CIT Consumer Finance's sole expense. The Trustee shall cooperate with
CIT Consumer Finance by executing such instruments prepared by or at the
direction of CIT Consumer Finance, as CIT Consumer Finance shall request to
facilitate recordation of the assignments.

      If a Responsible Officer of the Trustee receives notice or has actual
knowledge that CIT Consumer Finance has failed to record such assignments of
Mortgages as provided above, the Trustee shall either (i) prepare such
assignments in recordable form and record such assignments in favor of the
Trustee within sixty (60) days at the expense of CIT Consumer Finance or (ii)
obtain opinions of counsel to the effect that recordation of assignments is not
required to protect the interests of the Trustee in the Mortgage Loans and the
related Mortgaged Property at the expense of CIT Consumer Finance. CIT Consumer
Finance hereby agrees to cooperate in the preparation, execution and recording
of such assignments.

      (b) From time to time the Master Servicer shall, subject to the preceding
paragraph, take and cause to be taken such actions and execute such documents as
are necessary to perfect and protect the Certificateholders' interests in the
Mortgage Loans and their proceeds and the Mortgaged Properties against all other
persons. The accounting records and computer systems of the Depositor and of CIT
Consumer Finance will be marked to reflect the sale and assignments of the
Mortgage Loans by CIT Consumer Finance and the Depositor as contemplated herein.

                                      -54-
<PAGE>

      SECTION 4.03. Review of Mortgage Documents.

      (a) The Trustee, in its capacity as Custodian, shall review each Mortgage
Document within 60 days of delivery of such Mortgage Document and deliver to the
Trustee and the Master Servicer the Trust Receipt and Initial Certification
pursuant to the Custodial Agreement. If any Mortgage Document is found to be
missing or defective in a material respect, is not properly executed, is
unrelated to the Mortgage Loans of the Trust or does not conform in a material
respect to the description thereof provided by or on behalf of CIT Consumer
Finance, the Trustee, in its capacity as Custodian, shall notify the Master
Servicer and the Depositor, and the Master Servicer will notify CIT Consumer
Finance. If CIT Consumer Finance does not cure such defect within 85 days after
notice thereof from the Master Servicer or within 90 days after knowledge
thereof and the defect materially and adversely affects the interest of the
Trust in the related Mortgage Loan, CIT Consumer Finance shall be obligated to
repurchase the related Mortgage Loan from the Trust at the Purchase Price. CIT
Consumer Finance shall effect such repurchase by paying to the Master Servicer
for deposit in the Certificate Account on the Business Day immediately preceding
the Distribution Date in the month following the month in which the loan was
repurchased, the aggregate of the Purchase Price of all Mortgage Loans that are
required to be repurchased pursuant to the preceding sentence.

      Notwithstanding the provisions of the preceding paragraph, but subject to
Section 4.03(b), CIT Consumer Finance will not be required to repurchase a
Mortgage Loan as described in the preceding paragraph unless the Trustee has
received an Opinion of Counsel that such repurchase will not cause any of the
REMICs to fail to qualify as a REMIC at any time under the then applicable REMIC
Provisions. The cost of obtaining such Opinion of Counsel shall be borne by CIT
Consumer Finance. The Master Servicer shall obtain such Opinion of Counsel. CIT
Consumer Finance shall, subject to this Section 4.03, repurchase such Mortgage
Loan or substitute a Qualified Substitute Mortgage Loan and shall guarantee the
payment of any tax imposed under the REMIC Provisions as a result of such
repurchase or substitution by paying to the Trustee the amount of such tax not
later than five Business Days before such tax shall be due and payable to the
extent that amounts previously paid over to and then held by the Trustee
pursuant to Section 5.10 hereof are insufficient to pay such tax and all other
taxes chargeable under Section 5.10. Pursuant to Section 5.10, the Master
Servicer is hereby directed to withhold, and shall withhold and pay over to the
Trustee, an amount sufficient to pay such tax and any other taxes imposed on
"prohibited transactions" under Section 860F(a)(1) of the Code or imposed on
"contributions after start up date" under Section 860G(d) of the Code from
amounts otherwise distributable to the Private Certificateholders. The Master
Servicer shall give notice to the Trustee at the time of such repurchase of the
amounts due from CIT Consumer Finance pursuant to the guarantee of CIT Consumer
Finance and notice as to who should receive such payment. The Trustee will have
no responsibility whatsoever for determining the amounts or any mathematical
calculations associated therewith.

      The Trustee shall have no obligation to pay any such amounts pursuant to
this Section other than from moneys provided to it by CIT Consumer Finance or
from moneys held in the funds and accounts created under this Agreement. The
Trustee shall be deemed conclusively to have complied with this Section if it
follows the directions of CIT Consumer Finance.

                                      -55-
<PAGE>

      In the event any tax that is guaranteed by CIT Consumer Finance is
refunded to the Trust or otherwise is determined not to be payable, CIT Consumer
Finance shall be repaid the amount of such refund or that portion of any
guarantee payment made by CIT Consumer Finance that is not applied to the
payment of such tax.

      (b) On or prior to the date that is the second anniversary of the Closing
Date, CIT Consumer Finance, at its election, may substitute a Qualified
Substitute Mortgage Loan for a Mortgage Loan that it is obligated to repurchase
pursuant to Section 4.03(a) (such Mortgage Loan being referred to as the
"Deleted Mortgage Loan") upon satisfaction of the following conditions:

            (i) CIT Consumer Finance shall have conveyed to the Trustee, for the
      benefit of the Certificateholders, the Mortgage Loan to be substituted for
      the Deleted Mortgage Loan and the File related to such Mortgage Loan and
      CIT Consumer Finance shall have marked the Electronic Ledger indicating
      that such Mortgage Loan constitutes part of the Trust;

            (ii) the Mortgage Loan to be substituted for the Deleted Mortgage
      Loan is a Qualified Substitute Mortgage Loan and CIT Consumer Finance
      delivers an Officer's Certificate, substantially in the form of Exhibit K
      hereto, to the Trustee certifying that such Mortgage Loan is a Qualified
      Substitute Mortgage Loan;

            (iii) CIT Consumer Finance shall have delivered to the Trustee an
      Opinion of Counsel to the effect that the substitution of such Mortgage
      Loan for such Deleted Mortgage Loan will not cause any of the REMICs to
      fail to qualify as a REMIC at any time under then applicable REMIC
      Provisions or cause any "prohibited transaction" that will result in the
      imposition of a tax under such REMIC Provision;

            (iv) if the Principal Balance of such Deleted Mortgage Loan is
      greater than the Principal Balance of the Mortgage Loan being substituted,
      the Seller shall have deposited in the Certificate Account the amount of
      such excess, plus accrued and unpaid interest (the "Substitution
      Adjustment") and shall have included in the Officer's Certificate required
      by clause (ii) above a certification that such deposit has been made; and

            (v) CIT Consumer Finance shall have delivered to the Rating Agencies
      prior written notice of such substitution.

Upon satisfaction of such conditions, the Trustee shall add such Mortgage Loan
to, and delete such Deleted Mortgage Loan from, the List of Mortgage Loans. Such
substitution shall be effected prior to the expiration of the period in which
CIT Consumer Finance is otherwise obligated to repurchase such Deleted Mortgage
Loan pursuant to Section 4.03(a). Promptly after any substitution of a Mortgage
Loan, CIT Consumer Finance shall give written notice of such substitution to the
Rating Agencies.

      (c) Promptly after the repurchase referred to in Section 4.03(a) or the
substitution referred to in Section 4.03(b), the Trustee shall execute such
documents as are

                                      -56-
<PAGE>

presented to it by CIT Consumer Finance and are reasonably necessary to reconvey
the repurchased Mortgage Loan or Deleted Mortgage Loan, as the case may be, to
CIT Consumer Finance and deliver the related File to CIT Consumer Finance.

      (d) The repurchase obligation of CIT Consumer Finance set forth in this
Section 4.03 shall constitute the sole remedy available to the Trust and the
Certificateholders for a defect in documentation relating to this Section 4.03.

                                   ARTICLE V

                           SERVICING OF MORTGAGE LOANS

      SECTION 5.01. Responsibility for Mortgage Loan Administration.

      The Master Servicer shall manage, administer, service and make collections
on the Mortgage Loans and perform or cause to be performed all contractual and
customary undertakings of the holder of the Mortgage Loans to the Mortgagors.
The Trustee, at the request of a Servicing Officer, shall execute any reasonable
documents or take any action reasonably requested, necessary or appropriate to
enable the Master Servicer to carry out its servicing and administrative duties
hereunder. CIT Consumer Finance is hereby appointed the Master Servicer until
such time as any Service Transfer shall be effected under Article VII.

      SECTION 5.02. Standard of Care.

      In managing, administering, servicing and making collections on the
Mortgage Loans pursuant to this Agreement, the Master Servicer shall exercise
that degree of skill and care consistent with the same degree of skill and care
that the Master Servicer exercises with respect to similar mortgage loans
serviced by the Master Servicer for its own account. Notwithstanding the
foregoing, the Master Servicer shall not release or waive the right to collect
the unpaid balance on a Mortgage Loan or grant an extension of payments due on a
Mortgage Loan, unless either (i) such release, waiver or extension is occasioned
by a default or a reasonably foreseeable default (in the opinion of the Master
Servicer) on such Mortgage Loan; or (ii) such release, waiver or extension is of
a type which counsel has advised has been identified by the Code or Treasury
Regulations which would not be treated as an exchange of the Mortgage Loan for
purposes of Section 1001 of the Code; or (iii) unless the Master Servicer
obtains an Opinion of Counsel to the effect that such action will not cause the
Trust to fail to qualify as a REMIC under the Code and under the relevant state
and local law or result in the imposition of taxes on the Trust under the REMIC
Provisions.

      SECTION 5.03. Records.

      The Master Servicer shall during the period it is Master Servicer
hereunder, maintain such books of account and other records as will enable the
Trustee to determine the status of each Mortgage Loan.

                                      -57-
<PAGE>

      SECTION 5.04. Inspection; Computer Tape.

      (a) At all times during the term hereof, the Master Servicer shall afford
the Trustee and its authorized agents reasonable access during normal business
hours to the Master Servicer's records relating to the Mortgage Loans and will
cause its personnel to assist in any examination of such records by the Trustee
or its authorized agents. The examination referred to in this Section 5.04 will
be conducted in a manner which does not unreasonably interfere with the Master
Servicer's normal operations or customer or employee relations. Without
otherwise limiting the scope of the examination the Trustee may make, the
Trustee or its authorized agents may, using generally accepted audit procedures,
verify the status of each Mortgage Loan and review the Electronic Ledger and
records relating thereto for conformity to Monthly Reports prepared pursuant to
Article VI and compliance with the standards represented to exist as to each
Mortgage Loan in this Agreement.

      (b) At all times during the term hereof, the Master Servicer shall keep
available a copy of the List of Mortgage Loans at its principal executive office
for inspection by Certificateholders.

      SECTION 5.05. Certificate Account.

      (a) Certificate Account. On or before the Closing Date, the Trustee shall
establish the Certificate Account on behalf of the Trust as an Eligible Account.
If, at any time, the Certificate Account ceases to be maintained as an Eligible
Account, the Trustee (or the Master Servicer on its behalf) shall, within five
(5) Business Days (or such longer period, not to exceed thirty (30) calendar
days, as to which the Rating Agencies may consent) establish a new Certificate
Account meeting the condition specified above, transfer any cash and/or any
investments to such new Certificate Account and from the date such new
Certificate Account is established, it shall be the "Certificate Account." The
Certificate Account shall be held by The Bank of New York, not in its individual
capacity but solely as trustee for the benefit of Holders of Home Equity Loan
Asset Backed Certificates, Series 2003-1 (The CIT Group/Consumer Finance, Inc.,
Master Servicer) Certificate Account to be entitled "CIT 2003-1 Certificate
Account." The Master Servicer shall, subject to the second following sentence,
deposit in the Certificate Account, no later than two Business Days after the
Closing Date, any amounts representing payments received on the Mortgage Loans
on and after the Cut-Off Date, regardless of when due. The Master Servicer
shall, subject to the following sentence, pay into the Certificate Account as
promptly as practicable (not later than the second Business Day) following the
receipt thereof by the Master Servicer, all amounts received in respect of the
Mortgage Loans, including all payments from Mortgagors, Liquidation Proceeds,
Insurance Proceeds, Monthly Advances and any Purchase Price (or Substitution
Adjustment) paid pursuant to Section 3.05, Section 5.14 or Section 4.03.
Notwithstanding anything in this Agreement to the contrary, for so long as, and
only so long as, CIT Consumer Finance shall remain the Master Servicer hereunder
and CIT Consumer Finance remains a wholly-owned direct or indirect subsidiary of
CIT, if CIT shall have and maintain a short-term debt rating of at least A-1 by
Standard & Poor's and either a short-term debt rating of at least P-1 by Moody's
or a long-term debt rating of at least A2 by Moody's (notice of the failure to
maintain such rating shall be given to the Trustee by the Master Servicer within
ten (10) days of the occurrence thereof), the Master Servicer may make the
deposits to the Certificate Account specified in the two preceding

                                      -58-
<PAGE>

sentences on a monthly basis, but in any case shall make the deposits to the
Certificate Account not later than the Business Day immediately preceding the
applicable Distribution Date, in an amount equal to the net amount of such
deposits and payments which would have been made to the Certificate Account
during such Due Period but for the provisions of this sentence. The Master
Servicer shall not be required to deposit in the Certificate Account amounts
that are otherwise permitted to be withdrawn therefrom pursuant to clauses (c),
(d), (e) and (f) of Section 8.02 or amounts that are payable to the Master
Servicer pursuant to Section 8.04; provided, however, the Master Servicer shall
be required to so deposit the Master Servicing Fee referred to in Section
8.02(g) unless CIT Consumer Finance is the Master Servicer (in which case CIT
Consumer Finance, as Master Servicer, shall not be required to so deposit the
Master Servicing Fee referred to in Section 8.02(g)). All amounts paid into the
Certificate Account under this Agreement shall be held in trust for the
Certificateholders (or the Master Servicer, to the extent the Master Servicer is
entitled to receive any such amounts pursuant to this Agreement) until payment
of any such amounts is authorized under this Agreement.

      (b) The Eligible Institution maintaining the Certificate Account shall, in
the name of the Trustee, as trustee, invest the amounts in the Certificate
Account solely in Eligible Investments that mature not later than one Business
Day prior to the next succeeding Distribution Date, in accordance with
instructions provided to the Trustee by the Master Servicer in writing. Once
such funds are invested, such Eligible Institution shall not change the
investment of such funds. All net income and gain from the investment of funds
in the Certificate Account shall be deposited in the Certificate Account. All
income and gain realized from any such investment of funds in the Certificate
Account (to the extent investment of such funds is permitted hereunder) shall be
for the benefit of the Master Servicer and may be withdrawn by the Trustee at
the written direction (which may be in the form of a Monthly Report) of the
Master Servicer on each Distribution Date pursuant to subsection 8.02(h). An
amount equal to any net loss on such investments shall be deposited in the
Certificate Account by the Master Servicer out of its own funds, without right
to reimbursement, immediately as realized. "Eligible Investments" are any of the
following:

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

            (ii) (A) demand and time deposits in, certificates of deposit of,
      bankers' acceptances issued by, or federal funds sold by any depository
      institution or trust company (including the Trustee or any Affiliate of
      the Trustee, acting in its commercial capacity) incorporated under the
      laws of the United States of America or any state thereof or the District
      of Columbia (or any domestic branch or agency of a foreign bank) and
      subject to supervision and examination by federal and/or state
      authorities, so long as, at the time of such investment or contractual
      commitment providing for such investment, the commercial paper or other
      short-term debt obligations of such depository institution or trust
      company have been rated at least P-1 or higher from Moody's and A-1+ from
      Standard & Poor's or such other rating acceptable to the Rating Agencies
      and (B) any

                                      -59-
<PAGE>

      other demand or time deposit or certificate of deposit which is fully
      insured by the Federal Deposit Insurance Corporation and which is rated at
      least P-1 by Moody's;

            (iii) repurchase obligations with respect to any security described
      in either clause (i) or (ii) above and entered into with any institution
      whose commercial paper is at least rated P-1 from Moody's and A-1+ from
      Standard & Poor's;

            (iv) securities bearing interest or sold at a discount issued by any
      corporation incorporated under the laws of the United States of America or
      any State thereof which have a long-term credit rating of at least Aa3 or
      a short-term credit rating of P-1 from Moody's and at least AAA from
      Standard & Poor's at the time of such investment;

            (v) commercial paper (which may be commercial paper issued by CIT
      Group Inc.) having a rating of at least P-1 from Moody's and A-1 by
      Standard & Poor's at the time of such investment; and

            (vi) money market funds rated Aaa or P-1 by Moody's and AAAm or
      AAAm-G by Standard & Poor's, including, without limitation, any such fund
      for which the Trustee or an affiliate of the Trustee serves as an
      investment advisor, administrator, shareholder servicing agent and/or
      custodian or subcustodian, notwithstanding that (i) the Trustee or an
      affiliate of the Trustee charges and collects fees and expenses from such
      funds for services rendered, (ii) the Trustee charges and collects fees
      and expenses for services rendered pursuant to this instrument, and (iii)
      services performed for such funds and pursuant to this instrument may
      converge at any time. (The Seller and the Master Servicer specifically
      authorize the Trustee or an affiliate of the Trustee to charge and collect
      all fees and expenses from such funds for services rendered to such funds,
      in addition to any fees and expenses the Trustee may charge and collect
      for services rendered pursuant to this instrument).

      The Trustee may trade with itself or with an Affiliate on an arm's length
basis in the purchase or sale of such Eligible Investments. The Trustee shall
not be liable for the selection of or for any investment losses made at the
direction of the Master Servicer on any Eligible Investments.

      SECTION 5.05A. Pre-Funding Account.

      (a) On or before the Closing Date, the Trustee shall establish the
Pre-Funding Account on behalf of the Trust as an Eligible Account, and the funds
on deposit therein will be invested solely in Eligible Investments that mature
not later than one Business Day prior to the next succeeding Distribution Date,
until they are applied by the Trustee. If, at any time during the Funding
Period, the Pre-Funding Account ceases to be an Eligible Account, the Trustee
(or the Master Servicer on its behalf) shall within five (5) Business Days (or
such longer period, not to exceed thirty (30) calendar days, as to which the
Rating Agency may consent) establish a new Pre-Funding Account as an Eligible
Account and any cash and/or any investments shall be transferred to such new
Pre-Funding Account and from the date such new Pre-Funding Account is
established, it shall be the "Pre-Funding Account." The Pre-Funding Account
shall held by

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<PAGE>

The Bank of New York, not in its individual capacity but solely as trustee for
the benefit of Holders of Home Equity Loan Asset Backed Certificates, Series
2003-1 (The CIT Group/Consumer Finance, Inc., Master Servicer) and shall be
entitled "CIT 2003-1 Pre-Funding Account." The Pre-Funding Account shall bear an
additional designation clearly indicating that the funds on deposit therein are
held for the benefit of, and owned by, the Trust. On the Closing Date, the
Trustee is hereby instructed to deposit the Original Pre-Funded Amount into the
Pre-Funding Account. The Pre-Funding Account will not be a part of any of REMIC
I, REMIC II, REMIC III or Master REMIC.

      (b) On any Subsequent Transfer Date, the Master Servicer shall instruct
the Trustee in writing (which may be in the form of a Monthly Report) to
withdraw from the Pre-Funding Account an amount equal to 100% of the unpaid
principal balance thereof as of the related Subsequent Cut-Off Date of the
Subsequent Mortgage Loans sold to the Trust on such Subsequent Transfer Date and
pay such amount to or upon the order of Depositor with respect to such transfer.
In no event shall the Master Servicer be permitted to instruct the Trustee to
release from the Pre-Funding Account with respect to Subsequent Mortgage Loans
to be transferred to the Trust an amount which, when added to the amounts
previously released from the Pre-Funding Account to acquire Subsequent Mortgage
Loans, would exceed the Original Pre-Funded Amount.

      (c) On each Distribution Date occurring during the Funding Period, the
Trustee shall withdraw Pre-Funding Earnings from the Pre-Funding Account, to the
extent available, and deposit such Pre-Funding Earnings in the Supplemental
Interest Reserve Account for payment to the Holders of the Certificates on such
Distribution Dates as a portion of the Monthly Interest Amount with respect to
each such Distribution Date.

      (d) On the last day of the Funding Period (or, if such day is not a
Business Day, on the next succeeding Business Day) (but in no event later than
the June 2003 Distribution Date) the Master Servicer shall instruct the Trustee
in writing (which may be in the form of a Monthly Report) to withdraw from the
Pre-Funding Account, and the Trustee shall so withdraw, the difference, if any,
between (A) the sum of the Original Pre-Funded Amount, and (B) all amounts
theretofore withdrawn from the Pre-Funding Account with respect to the purchase
and transfer to the Trust of Subsequent Mortgage Loans, and the Trustee shall
deposit such amount into the Certificate Account for payment to the Holders of
the Certificates as a portion of the Basic Principal Amount on the Distribution
Date immediately following the Funding Period or if the end of the Funding
Period is on a Distribution Date, then on such date.

      (e) Any Pre-Funding Earnings on deposit in the Pre-Funding Account on the
last day of the Funding Period shall be deposited by the Trustee in the
Supplemental Interest Reserve Account on such date and shall constitute part of
the Monthly Interest Amount on the first Distribution Date thereafter or, if the
end of the Funding Period is on a Distribution Date, then on such date.

      The REMIC Administrator, on behalf of the Trustee, shall account for the
Pre-Funding Account as an outside reserve fund within the meaning of Treasury
regulation 1.860G-2(h) and not an asset of any REMIC created pursuant to this
Agreement. The Class X-IO

                                      -61-
<PAGE>

Certificates shall evidence ownership of the Pre-Funding Account for federal tax
purposes and the Holders thereof shall direct the Trustee in writing as to the
investment of amounts therein.

      (f) The REMIC Administrator, on behalf of the Trustee, shall account for
any distributions pursuant to Section 8.01 of an amount equal to the excess, if
any, of the Net WAC Cap for any Certificate over the REMIC Net WAC Rate for the
REMIC regular interest attributable to such Certificate as a payment from the
Supplemental Interest Reserve Account passing outside any REMIC created pursuant
to this Agreement.

      SECTION 5.06. Enforcement.

      (a) The Master Servicer shall, consistent with customary servicing
procedures and the terms of this Agreement, act with respect to the Mortgage
Loans in such manner as will maximize the receipt of principal and interest on
the Mortgage Loans and Liquidation Proceeds in respect of Liquidated Mortgages.

      (b) The Master Servicer may sue to enforce or collect upon Mortgage Loans,
including foreclosure of any Mortgaged Property, in its own name, if possible,
or as agent for the Trustee. If the Master Servicer elects to commence a legal
proceeding to enforce a Mortgage Loan, the act of commencement shall be deemed
to be an automatic assignment of the Mortgage Loan to the Master Servicer for
purposes of collection only. If, however, in any enforcement suit or legal
proceeding it is held that the Master Servicer may not enforce a Mortgage Loan
on the ground that it is not a real party in interest or a holder entitled to
enforce the Mortgage Loan, the Trustee on behalf of the Trust shall, at the
Master Servicer's expense, take such steps as the Master Servicer deems
necessary to enforce the Mortgage Loan, including bringing suit in its name or
the names of the Certificateholders.

      (c) The Master Servicer shall exercise any rights of recourse against
third persons that exist with respect to any Mortgage Loan in accordance with
the Master Servicer's usual practice. In exercising recourse rights, the Master
Servicer is authorized on the Trustee's behalf to reassign the Mortgage Loan or
to resell the related Mortgaged Property to the person against whom recourse
exists at the price set forth in the document creating the recourse.

      (d) Prior to a Service Transfer, the Master Servicer may grant to the
Mortgagor on any Mortgage Loan any rebate, refund or adjustment out of the
Certificate Account that the Master Servicer in good faith believes is required
because of a Principal Prepayment of the Mortgage Loan. The Master Servicer
shall not permit any rescission or cancellation of any Mortgage Loan, except to
the extent, if any, required by law.

      (e) Prior to a Service Transfer, the Master Servicer may, consistent with
its customary servicing procedures and in accordance with Section 5.02, grant to
the Mortgagor on any Mortgage Loan an extension of payments due under such
Mortgage Loan, provided that such extension does not result in any payments
coming due on or after June, 2033.

      (f) The Master Servicer may enforce any due-on-sale clause in a Mortgage
Loan if such enforcement is consistent with its customary servicing procedures
for obligations similar to the Mortgage Loans, provided that such enforcement is
permitted by applicable law

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<PAGE>

and will not adversely affect any applicable insurance policy. If an assumption
and modification of a Mortgage Loan is permitted by the Master Servicer upon the
conveyance of the related Mortgaged Property, the Master Servicer shall use its
best efforts to obtain an assumption and modification agreement in connection
therewith and deliver such assumption and modification agreement to the Trustee
for addition to the related File.

      (g) In the event that applicable state law requires that the sale of any
Mortgaged Property to which the Trustee has acquired title, through foreclosure
or otherwise, be conducted through a licensed real estate broker or if the
Master Servicer otherwise determines that it is prudent, the Master Servicer
shall retain such broker, and the fees payable to such broker in connection with
any such sale shall constitute Liquidation Expenses.

      (h) Absent a default in payment by a Mortgagor or a reasonably foreseeable
payment default by a Mortgagor, the Servicer shall not make any change to a
Mortgage that could affect payments on the Mortgage if such change would be
considered a significant modification to the Mortgage under Treasury regulation
section 1.860G-2(b).

      (i) Consistent with the standard of care set forth in Section 5.02, the
Master Servicer may, in its discretion, (i) waive any assumption fee, prepayment
charge, penalty interest, late payment or other charge in connection with a
Mortgage Loan, and (ii) arrange with a Mortgagor a schedule for the repayment of
delinquent amounts, subject to Section 5.02. To the extent the Master Servicer
consents to the deferment of the due dates for payments due on a Mortgage Loan,
the Master Servicer shall make payment of any required Monthly Advance with
respect to the payments so extended to the same extent as if such installment
had not been deferred.

      SECTION 5.07. Trustee to Cooperate.

      Upon payment in full on any Mortgage Loan, the Master Servicer shall
notify the Trustee by certification of a Servicing Officer (which certification
shall include a statement to the effect that such Mortgage Loan has been paid in
full and that all amounts received in connection with such payments which are
required to be deposited in the Certificate Account pursuant to Section 5.05
have been so deposited). The Master Servicer is authorized to execute an
instrument in satisfaction of such Mortgage Loan and to do such other acts and
execute such other documents as the Master Servicer reasonably deems to be
necessary to discharge the Mortgagor thereunder and eliminate the security
interest in the Mortgaged Property related thereto. The Master Servicer shall
determine when a Mortgage Loan has been paid in full. To the extent that
insufficient payments are received on a Mortgage Loan credited by the Master
Servicer as prepaid or paid in full and satisfied, the shortfall shall be paid
by the Master Servicer out of its own funds. From time to time as appropriate
for servicing and foreclosure in connection with any Mortgage Loan, the Trustee
shall, upon written request of a Servicing Officer and delivery to the Trustee,
of a receipt signed by such Servicing Officer, cause the original Mortgage Loan
and the related File to be released to the Master Servicer and shall execute
such documents as the Master Servicer shall deem necessary to the prosecution of
any such proceedings. Such receipt shall obligate the Master Servicer to return
the original Mortgage Loan and the related File to the Trustee when its need by
the Master Servicer has ceased unless the Mortgage Loan shall be liquidated or
repurchased as described in Section 3.05 or 4.03. Upon

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<PAGE>

the request of a Servicing Officer, the Trustee shall perform such other acts as
reasonably requested by the Master Servicer and otherwise cooperate with the
Master Servicer in enforcement of the Certificateholders' rights and remedies
with respect to the Mortgage Loans.

      SECTION 5.08. Costs and Expenses.

      (a) All costs and expenses incurred by the Master Servicer in carrying out
its duties hereunder, including all fees and expenses incurred in connection
with the enforcement of Mortgage Loans (including enforcement of Liquidated
Mortgages), shall be paid by the Master Servicer and the Master Servicer shall
not be entitled to reimbursement hereunder, except that the Master Servicer
shall be reimbursed out of the Liquidation Proceeds of a Liquidated Mortgage for
ordinary and necessary Liquidation Expenses incurred by it directly in
connection with realizing upon the related Mortgaged Property.

      (b) In addition, the Master Servicer shall pay the cost of (i) the
preservation, restoration and protection of any Mortgaged Property, (ii) any
enforcement or judicial proceedings, including foreclosures, and (iii) the
management and liquidation of a Mortgaged Property acquired in satisfaction of
the related Mortgage Loan. Such expenditures may include costs of collection
efforts, reappraisals when a Mortgage Loan is past due, legal fees in connection
with foreclosure actions, advancing payments on the related senior mortgages, if
any, acquiring the related senior mortgage(s), if any, advances of delinquent
property taxes, upkeep and maintenance of the Mortgaged Property if it is
acquired through foreclosure, and similar types of expenses. Each such
expenditure constitutes a "Servicing Advance." The Master Servicer shall be
obligated to make the Servicing Advances incurred in the performance of its
servicing obligations only if it determines (i) that such actions will increase
the proceeds of liquidation of the Mortgage Loan to Certificateholders after
reimbursement to itself for such expenses, and (ii) that such expenses will be
recoverable to it as described in clause (c) of this Section 5.08.

      (c) The Master Servicer shall be entitled to recover Servicing Advances to
the extent permitted by the related Mortgage Loan or, if not theretofore
recovered from the Mortgagor on whose behalf such Servicing Advance was made,
from Liquidation Proceeds, Insurance Proceeds and such other amounts as may be
collected by the Master Servicer from the Mortgagor or otherwise relating to the
Mortgage Loan. Servicing Advances shall be reimbursable to the Master Servicer
from the sources described above out of the funds on deposit in the Certificate
Account pursuant to Section 8.02(c), such right of reimbursement being prior to
the rights of Certificateholders to receive any related Liquidation Proceeds
(including Insurance Proceeds).

      SECTION 5.09. Maintenance of Insurance.

      (a) Except as otherwise provided in subsection (b) of this Section 5.09,
the Master Servicer shall cause to be maintained with respect to each REO
Property one or more Hazard Insurance Policies which provide, at a minimum, the
same coverage as a standard form fire and extended coverage insurance policy
that is customary for the type of Mortgaged Property, issued by a company
authorized to issue such policies in the state in which the related Mortgaged
Property is located, and in an amount which is not less than (i) the maximum

                                      -64-
<PAGE>

insurable value of such Mortgaged Property, (ii) the outstanding principal
balance due from the Mortgagor on the related Mortgage Loan and the related
senior mortgage (if any) or (iii) the minimum amount required to compensate for
damage or loss on a replacement cost basis, whichever is less; provided,
however, that the amount of coverage provided by each Hazard Insurance Policy
shall be sufficient to avoid the application of any co-insurance clause
contained therein; and provided, further, that such Hazard Insurance Policies
may provide for customary deductible amounts. If an REO Property's location is
within a federally designated special flood hazard area, the Master Servicer
shall also cause such flood insurance to be maintained, which coverage shall be
at least equal to the minimum amount specified in the preceding sentence or such
lesser amount as may be available under the federal flood insurance program;
provided, however, that the failure of the Master Servicer to maintain such
flood insurance coverage in the case of a Mortgage Loan for which such flood
insurance coverage was not maintained as of the Cut-Off Date shall not give rise
to an Event of Termination under Section 7.01. Each Hazard Insurance Policy
caused to be maintained by the Master Servicer shall contain a standard loss
payee clause in favor of the Master Servicer and its successors and assigns. The
Master Servicer may, but shall not be obligated to, cause to be maintained, with
respect to each Mortgage Loan in which the related Mortgaged Property has not
become an REO Property, one or more Hazard Insurance Policies, which coverage
shall be at least equal to the minimum amount specified above. If any Mortgagor
is in default in the payment of premiums on its Hazard Insurance Policy or
Hazard Insurance Policies, the Master Servicer may, but shall not be obligated
to, in the case of a Mortgage Loan in which the related Mortgaged Property has
not become an REO Property, pay such premiums out of its own funds. If the
Master Servicer elects to pay such premiums out of its own funds, it may
separately add such premium to the Mortgagor's obligation as provided by the
Mortgage Loan, but shall not add such premium to the remaining principal balance
of the Mortgage Loan. The payment by the Mortgagor to the Master Servicer of
such premiums (and interest thereon) shall not be an asset of the Trust and
shall not be deposited by the Master Servicer in the Certificate Account.

      (b) The Master Servicer may, in lieu of causing individual Hazard
Insurance Policies to be maintained with respect to each REO Property pursuant
to subsection (a) of this Section 5.09, and shall, to the extent that a Mortgage
Loan does not require the Mortgagor to maintain a Hazard Insurance Policy with
respect to the related Mortgaged Property, maintain one or more blanket
insurance policies covering losses on the Mortgagor's interest in the Mortgage
Loans resulting from the absence or insufficiency of individual Hazard Insurance
Policies. Any such blanket policy shall be substantially in the form and in the
amount carried by the Master Servicer at such time. The Master Servicer shall
pay the premium for such policy on the basis described therein. If the insurer
under such blanket insurance policy shall cease to be acceptable to the Master
Servicer, the Master Servicer shall exercise its best reasonable efforts to
obtain from another insurer a replacement policy comparable to such policy. The
Master Servicer shall provide the Rating Agencies with notice of the occurrence
of any event specified in the preceding sentence.

      (c) The Master Servicer, or any affiliate of the Master Servicer, may, to
the extent permitted by law (a) enter into agreements with one or more insurers
or other Persons pursuant to which the Master Servicer or such affiliate will
earn commissions and fees in connection with any insurance policy purchased by a
Mortgagor including, without limitation,

                                      -65-
<PAGE>

any hazard insurance policy (whether or not such hazard insurance policy is
force-placed pursuant to the provisions of any Mortgage Loan), or any other
insurance policy whatsoever and (b) in connection with the foregoing, to
solicit, or permit and assist any insurer or any agent thereof to solicit
(including, without limitation, providing such insurer or agent a list of
Mortgagors including name, address or other information) any Mortgagor.

      (d) The Master Servicer shall keep in force throughout the term of this
Agreement (i) a policy or policies of insurance covering errors and omissions
for failure to maintain insurance as required by this Agreement, and (ii) a
fidelity bond. Such policy or policies and such fidelity bond shall be in such
form and amount as is generally customary among Persons which service a
portfolio of home equity mortgage loans having an aggregate principal amount of
$500,000,000 or more and which are generally regarded as Master Servicers
acceptable to institutional investors.

      SECTION 5.10. REMIC Compliance.

      In the event that any tax is imposed on "prohibited transactions" of the
Trust as defined in Section 860F(a)(2) of the Code or on "contributions after
startup date" as defined in Section 860G(d) of the Code, such tax shall be
charged against amounts otherwise distributable to the Holders of the Private
Certificates in accordance with their Percentage Interests to the extent
hereinafter provided. Notwithstanding anything to the contrary contained herein,
the Master Servicer shall retain from amounts otherwise distributable to the
Holders of the Private Certificates on any Distribution Date sufficient funds
for the payment of such tax, including without limitation any tax payable
pursuant to Section 3.05 and 4.03, and shall pay such amount to the Trustee
(such payment to be accompanied by an Officer's Certificate of the Master
Servicer detailing such tax payment) or, if the Master Servicer (other than as a
Holder of a Private Certificate) has paid such tax, reimburse the Master
Servicer therefor (to the extent that the Master Servicer has not been
previously reimbursed or indemnified therefor). The Master Servicer agrees first
to seek indemnification for any such tax payment from any indemnifying parties
before reimbursing itself from amounts otherwise distributable to the Holders of
the Private Certificates.

      In the event that any Mortgaged Property is acquired in a foreclosure or
other realization procedure (an "REO Property"), the Master Servicer shall sell
such REO Property by the close of the third calendar year following the year of
acquisition of such property by the Trust, unless the Master Servicer seeks, and
receives within such period, an Opinion of Counsel, addressed to the Trustee and
the Master Servicer, to the effect that the holding by the Trust of such REO
Property subsequent to the close of the third calendar year following the year
of acquisition of such property by the Trust will not result in the imposition
of taxes on "prohibited transactions" on any of the REMICs created under this
Agreement as defined in Section 860F of the Code or cause any of the REMICs
created under this Agreement to fail to qualify as a REMIC at any time that any
Offered Certificates or Private Certificates are outstanding. The Master
Servicer shall manage, conserve, protect and operate each REO Property such that
it will qualify as "foreclosure property" within the meaning of Section
860G(a)(8) and will not result in the receipt by the REMIC of any "income from
nonpermitted assets" within the meaning of Section 860F(a)(2)(B) or the Code.
Pursuant to its efforts to sell such REO Property, the Master Servicer shall
either itself or through an agent selected by the Master Servicer protect and

                                      -66-
<PAGE>

conserve such REO Property in the same manner and to such extent as it is
customary in the locality where such REO Property is located and may, incident
to its conservation and protection of the interests of the Certificateholders,
rent the same, or any part thereof, as the Master Servicer deems to be in the
best interest of the Master Servicer and the Certificateholders for the period
prior to the sale of such REO Property.

      The Master Servicer shall deposit all Liquidation Proceeds in the
Certificate Account in accordance with Section 5.05(a). The Master Servicer
shall include with its Monthly Report to the Trustee a separate report
specifying, with respect to each Mortgage Loan that becomes a Liquidated
Mortgage during the prior Due Period, the unpaid principal balance and the
Liquidation Proceeds for such Mortgage Loan.

      The Master Servicer shall not:

            (i) authorize the Trust Fund to enter into, renew or extend any New
      Lease with respect to any REO Property, if the New Lease by its terms will
      give rise to any income that does not constitute Rents from Real Property;

            (ii) authorize any amount to be received or accrued under any New
      Lease other than amounts that will constitute Rents from Real Property;

            (iii) authorize any construction on any REO Property, other than the
      completion of a building or other improvement thereon, and then only if
      more than ten percent of the construction of such building or other
      improvement was completed before default on the related Mortgage Loan
      became imminent, all within the meaning of Section 856(e)(4)(B) of the
      Code; or

            (iv) authorize any Person to Directly Operate any REO Property on
      any date more than 90 days after its date of acquisition by the Trust
      Fund;

unless, in any such case, the Servicer has obtained an Opinion of Counsel,
provided to the Trustee, to the effect that such action will not cause such REO
Property to fail to qualify as "foreclosure property" within the meaning of
Section 860G(a)(8) of the Code at any time that it is held by the Trust Fund, in
which case the Servicer may take such actions as are specified in such Opinion
of Counsel.

      The Servicer may contract with any Independent Contractor for the
operation and management of any REO Property, provided that:

            (i) the terms and conditions of any such contract shall not be
      inconsistent herewith;

            (ii) any such contract shall require, or shall be administered to
      require, that the Independent Contractor pay all costs and expenses
      incurred in connection with the operation and management of such REO
      Property, including those listed above, and remit all related revenues
      (net of such costs and expenses) to the Servicer as soon as

                                      -67-
<PAGE>

      practicable, but in no event later than thirty days following the receipt
      thereof by such Independent Contractor;

            (iii) none of the provisions of this Section relating to any such
      contract or to actions taken through any such Independent Contractor shall
      be deemed to relieve the Servicer of any of its duties and obligations to
      the Trustee on behalf of the Certificateholders with respect to the
      operation and management of any such REO Property; and

            (iv) the Servicer shall be obligated with respect thereto to the
      same extent as if it alone were performing all duties and obligations in
      connection with the operation and management of such REO Property.

      SECTION 5.11. Sub-servicer.

      The Master Servicer may enter into subservicing agreements with one or
more sub-servicers (which shall be Eligible Servicers) for the servicing and
administration of certain of the Mortgage Loans. Each subservicing agreement
will be upon such terms and conditions as are not inconsistent with this
Agreement and the standard of care set forth herein and as the Master Servicer
and the sub-servicer have agreed. All compensation payable to a sub-servicer
under a subservicing agreement shall be payable by the Master Servicer from its
servicing compensation or otherwise from its own funds, and none of the Trust,
the Trustee or the Certificateholders will have any liability to the
sub-servicer with respect thereto.

      Notwithstanding any subservicing agreement or any of the provisions of
this Agreement relating to agreements or any arrangements between the Master
Servicer or a sub-servicer or any reference to actions taken through such
Persons or otherwise, the Master Servicer shall remain obligated and liable to
the Trust, the Trustee, and the Certificateholders for the servicing and
administering of the Mortgage Loans and the other Trust property in accordance
with the provisions of this Agreement without diminution of such obligation or
liability by virtue of such subservicing agreements.

      Any subservicing agreement that may be entered into and any other
transactions or servicing arrangements relating to the Mortgage Loans and the
other Trust property involving a sub-servicer in its capacity as such shall be
deemed to be between the sub-servicer and the Master Servicer alone, and the
Trustee and the Certificateholders shall not be deemed parties thereto and shall
have no claims, rights, obligations, duties or liabilities with respect to the
sub-servicer except as set forth in the next succeeding paragraph or as set
forth in such subservicing agreement.

      In the event the Master Servicer shall for any reason no longer be acting
as such, the successor Master Servicer may, in its discretion, thereupon assume
all of the rights and obligations of the outgoing Master Servicer under a
subservicing agreement. In such event, the successor Master Servicer shall be
deemed to have assumed all of the Master Servicer's interest therein and to have
replaced the outgoing Master Servicer as a party to each such subservicing
agreement to the same extent as if such subservicing agreement had been assigned
to the successor Master Servicer, except that the outgoing Master Servicer shall
not thereby be relieved

                                      -68-
<PAGE>

of any liability or obligations on the part of the outgoing Master Servicer to
the sub-servicer under such subservicing agreement. The outgoing Master Servicer
shall, upon request of the Trust, but at the expense of the outgoing Master
Servicer, deliver to the successor Master Servicer all documents and records
relating to each such subservicing agreement and the Mortgage Loans and other
Trust property then being serviced thereunder and an accounting of amount
collected and held by it and otherwise use its best efforts to effect the
orderly and efficient transfer of any subservicing agreement to the successor
Master Servicer. In the event that the successor Master Servicer elects not to
assume a subservicing agreement, the outgoing Master Servicer, at its expense,
shall cause the sub-servicer to deliver to the successor Master Servicer all
documents and records relating to the Mortgage Loans and the other Trust
property being serviced thereunder and all amounts held (or thereafter received)
by such sub-servicer (together with an accounting of such amounts) and shall
otherwise use its best efforts to effect the orderly and efficient transfer of
servicing of the Mortgage Loans and the other Trust property being serviced by
such sub-servicer to the successor Master Servicer.

      SECTION 5.12. Calculation of One-Month LIBOR.

      (a) On the second business day preceding each Distribution Date or, in the
case of the first Distribution Date, on the second business day preceding the
Closing Date (each such date, an "Interest Determination Date"), the Trustee
shall determine the London interbank offered rate for one-month U.S. dollar
deposits ("One-Month LIBOR") for the next Interest Period for the Variable Rate
Certificates on the basis of the offered rates of the Reference Banks for
one-month U.S. dollar deposits, as such rates appear in the Telerate Page 3750,
as of 11:00 a.m. (London time) on such Interest Determination Date. As used in
this section, "business day" means a day on which banks are open for dealing in
foreign currency and exchange in London and New York City.

      If on such Interest Determination Date fewer than two Reference Banks
provide such offered quotations, One-Month LIBOR for the related Interest Period
for the Variable Rate Certificates shall be the higher of (x) One-Month LIBOR as
determined on the previous Interest Determination Date and (y) the Reserve
Interest Rate. The "Reserve Interest Rate" shall be the rate per annum that the
Trustee determines to be either (i) the arithmetic mean (rounded upwards if
necessary to the nearest whole multiple of 1/16%) of the one-month U.S. dollar
lending rates which New York City banks selected by the Trustee are quoting on
the relevant Interest Determination Date to the principal London offices of
leading banks in the London interbank market or (ii) in the event that the
Trustee can determine no such arithmetic mean, the lowest one-month U.S. dollar
lending rate which New York City banks selected by the Trustee are quoting on
such Interest Determination Date to leading European banks.

      (b) The establishment of One-Month LIBOR on each Interest Determination
Date by the Trustee and the Trustee's calculation of the rate of interest
applicable to the Variable Rate Certificates for the related Interest Period
shall (in the absence of manifest error) be final and binding.

                                      -69-
<PAGE>

      SECTION 5.13. Applied Realized Loss Amounts.

      On each Distribution Date, the Master Servicer shall determine the total
of the Applied Realized Loss Amounts for such Distribution Date. The Applied
Realized Loss Amount for any Distribution Date shall be applied by reducing the
Certificate Principal Balance of each Class of Subordinate Certificates
beginning with the Class of Subordinate Certificates then outstanding with the
lowest payment priority, in each case until the respective Certificate Principal
Balance thereof is reduced to zero. Any Applied Realized Loss Amount allocated
to a Class of Certificates shall be allocated among the Certificates of such
Class in proportion to their respective Percentage Interests. Applied Realized
Loss Amounts will not be allocated to reduce the Certificate Principal Balance
of the Senior Certificates.

      SECTION 5.14. [Reserved]

      SECTION 5.15. Release of Collateral.

      The Master Servicer may, if such action is consistent with the standard of
care set forth in Section 5.02, release a portion of land from the lien of the
Mortgage thereon; provided that the Combined Loan-to-Value Ratio immediately
after the date of the release of such land is not greater than the Combined
Loan-to-Value Ratio as of the Cut-Off Date. The Master Servicer may not release
such land unless an Opinion of Counsel is provided to the effect that such
release would not disqualify any of the REMICs formed hereunder or result in a
"prohibited transaction" tax as defined in Section 860F of the Code.

                                   ARTICLE VI

                                     REPORTS

      SECTION 6.01. Monthly Reports to the Trustee.

      On or before the Determination Date, the Master Servicer shall furnish a
report (the "Monthly Report") to the Trustee, any Paying Agent and (if CIT
Consumer Finance is not the Master Servicer) CIT Consumer Finance. The
determination by the Master Servicer of the amount of the distributions to be
made to the Certificateholders, and, with respect to reimbursing the Master
Servicer for the Monthly Advances made by it as provided in Section 8.04, the
Master Servicer shall, in the absence of obvious error, be presumptively deemed
to be correct for all purposes hereunder, and the Trustee shall be protected in
relying upon the same without any independent check or verification.

      The Monthly Reports shall contain the following information:

            (i) the amount of the distribution with respect to such Holder's
      Certificates (based on a Certificate in the original principal or notional
      amount of $1,000);

            (ii) the amount of such Holder's distributions allocable to
      principal, separately identifying the aggregate amount of any Prepayments
      in full or other

                                      -70-
<PAGE>

      Prepayments or other recoveries of principal included therein (based on a
      Certificate in the original principal amount of $1,000) and any related
      Subordination Increase Amount;

            (iii) the amount of such Holder's distributions allocable to
      interest (based on a Certificate in the original principal or notional
      amount of $1,000);

            (iv) any Class Interest Carryover Shortfall for any Class of Offered
      Certificates for such Distribution Date;

            (v) any Class Principal Carryover Shortfall for any Class of
      Subordinate Certificates for such Distribution Date;

            (vi) the principal or notional amount of each Class of Offered
      Certificate which will be Outstanding and the aggregate Loan Balance,
      after giving effect to any payment of principal on such Distribution Date;

            (vii) the Overcollateralization Amount and Required
      Overcollateralization Amount, if any, remaining after giving effect to all
      distributions and transfers on such Distribution Date;

            (viii) based upon information furnished by the Master Servicer, such
      information as may be required by Section 6049(d)(7)(C) of the Code and
      the regulations promulgated thereunder to assist the Holders in computing
      their market discount;

            (ix) the total of any Substitution Adjustments and any Purchase
      Price amounts included in such distribution;

            (x) the weighted average Coupon Rate of the Mortgage Loans; and

            (xi) the Senior Enhancement Percentage;

            (xii) the amount of any Applied Realized Loss Amount for each Class
      of Subordinate Certificates as of the close of such Distribution Date;

            (xiii) during the Funding Period, the amount of funds on deposit in
      the Pre-Funding Account;

            (xiv) during the Funding Period, the number and aggregate principal
      balance of Subsequent Mortgage Loans;

            (xv) during the Funding Period, the number and aggregate principal
      balance of Subsequent Mortgage Loans purchased by the Trust on the related
      Distribution Date; and

            (xvi) during the Funding Period, the amount of investment earnings,
      net of losses and investment expenses, on amounts on deposit in the
      Pre-Funding Account.

                                      -71-
<PAGE>

      In addition, the Monthly Report shall contain the following information
with respect to each of the Mortgage Loans:

      (a) the number and aggregate Principal Balance of Mortgage Loans (i) 30-59
days delinquent, (ii) 60-89 days delinquent and (iii) 90 or more days
delinquent, as of the close of business on the last business day of the calendar
month next preceding the Distribution Date and the number and aggregate
Principal Balances of the Mortgage Loans and related data (as used herein,
"delinquent" means a Mortgage Loan as to which payments aggregating $65 or more
are delinquent);

      (b) the number and aggregate Principal Balance of all Mortgage Loans in
foreclosure proceedings as of the close of business on the last business day of
the calendar month preceding such Distribution Date;

      (c) the book value of any real estate acquired through foreclosure or
grant of a deed in lieu of foreclosure as of the close of business on the last
business day of the calendar month next preceding the Distribution Date;

      (d) the amount of Realized Losses and Cumulative Realized Losses and any
subsequent recoveries on Liquidated Mortgages; and

      (e) the number and aggregate Principal Balance of Mortgage Loans
repurchased pursuant to Section 5.14 and the amount of Cumulative Realized
Losses with respect to such Mortgage Loss repurchased.

      (f) whether the applicable Trigger Event has occurred; and

      (g) Mortgage Loans that are "balloon" loans.

      SECTION 6.02. Certificate of Servicing Officer.

      Each Monthly Report pursuant to Section 6.01 shall be accompanied by a
certificate of a Servicing Officer certifying the accuracy of the Monthly Report
and that no Event of Termination or event that with notice or lapse of time or
both would become an Event of Termination has occurred, or if such event has
occurred and is continuing, specifying the event and its status.

      SECTION 6.03. Other Data.

      In addition, the Master Servicer shall, on request of the Trustee, furnish
the Trustee such underlying data as can be generated by the Master Servicer's
existing data processing system without undue modification or expense. In
addition, the Master Servicer shall accurately and fully provide information
regarding payment performance of the Mortgagors to the nationally recognized
credit repositories. Nothing in this Section shall derogate from the obligation
of the Master Servicer to observe any applicable law prohibiting disclosure of
information regarding the Mortgagors and the failure of the Master Servicer to
provide access as provided in this Section as a result of such obligation shall
not constitute a breach of this Section.

                                      -72-
<PAGE>

      SECTION 6.04. Annual Report of Accountants.

      Within 90 days after the end of each calendar year, commencing March 31,
2004, the Master Servicer, at its expense, shall cause a firm of independent
public accountants which is a member of the American Institute of Certified
Public Accountants to deliver to the Trustee and the Underwriters a report which
opines on, at a minimum, the servicing entity's compliance with the minimum
servicing standards set forth in the Uniform Single Attestation Program for
Mortgage Bankers. Copies of the annual statement of accountants shall also be
provided to the Rating Agencies by the Master Servicer.

      SECTION 6.05. Statements to Certificateholders.

      (a) Concurrently with each distribution charged to the Certificate
Account, the Trustee, so long as it has received the Monthly Report from the
Master Servicer, shall forward or cause to be forwarded by mail to each
Certificateholder (or to the Depository), the Monthly Report.

      The Trustee (so long as it has received the Monthly Report from the Master
Servicer) and the Master Servicer shall inform any Certificateholder inquiring
by telephone of the information contained in the most recent Monthly Report. The
Trustee shall be entitled to rely conclusively upon the accuracy of the Monthly
Report without independent verification unless it actually knows that the
information contained therein is not accurate.

      Within a reasonable period of time after the end of each calendar year,
the Trustee shall furnish upon request or cause to be furnished to each Person
who at any time during the calendar year was a Certificateholder a statement
containing the information with respect to interest accrued and principal paid
on its Certificates during such calendar year and such other information as the
Master Servicer deems necessary or desirable for Certificateholders to prepare
their tax returns which has been provided in writing by the Master Servicer to
the Trustee. Such obligation of the Trustee shall be deemed to have been
satisfied to the extent that substantially comparable information shall be
provided by the Trustee pursuant to any requirements of the Code as from time to
time in force.

      Copies of all reports provided to the Trustee shall also be provided by
the Master Servicer to the Rating Agencies and the Underwriters.

      (b) The Master Servicer shall, on behalf of the Trust, cause to be filed
with the Commission any periodic reports required to be filed on behalf of the
Trust under the provisions of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), and the rules and regulations of the Commission
thereunder. Upon the request of the Master Servicer, the Seller shall cooperate
with the Master Servicer in the preparation of any such report and the Seller
and the Trustee each shall provide to the Master Servicer in a timely manner all
such information or documentation as is in the possession of such Person and
that the Master Servicer may reasonably request in connection with the
performance of its duties and obligations under this Section 6.05.

                                      -73-
<PAGE>

      The Master Servicer shall file with the Commission a Form 15 and a Form
10K, and any amendments thereto, with respect to the Trust as soon as
practicable following the first date on which the conditions to filing thereof
have been satisfied.

      SECTION 6.06. Annual Statement as to Compliance.

      (a) The Master Servicer shall deliver to the Trustee and the Underwriters
within 90 days after the end of each calendar year commencing March 31, 2004, a
certificate signed by a Responsible Officer of the Master Servicer, stating that
(i) a review of the activities of the Master Servicer during the preceding
calendar year of its performance under this Agreement has been made under such
officer's supervision and (ii) to the best of such officer's knowledge, based on
such review, the Master Servicer has fulfilled all its obligations under this
Agreement throughout such preceding calendar year, or, if there has been a
default in the fulfillment of any such obligation, specifying each such default
known to such officer and the nature and status thereof.

      (b) The Master Servicer shall deliver to the Trustee, promptly after
having obtained knowledge thereof, a certificate of a Responsible Officer of the
Master Servicer specifying any event which with the giving of notice or lapse of
time, or both, would become an Event of Termination under subsection (a) or (b)
of Section 7.01 hereof.

                                  ARTICLE VII

                                SERVICE TRANSFER

      SECTION 7.01. Event of Termination.

      "Event of Termination" means the occurrence of any of the following:

      (a) Any failure by the Master Servicer to make any deposit into the
Certificate Account required to be made hereunder or remit to the Trustee any
payment and the continuance of such failure for a period of five Business Days
after the giving of written notice of such failure, requiring the same to be
remedied, to the Master Servicer by the Trustee or to the Master Servicer and
the Trustee by Certificateholders (other than the Class X-IO and Class R
Certificates) of any Class evidencing, as to such Class, Percentage Interests
aggregating not less than 51%;

      (b) Any failure by the Master Servicer duly to observe or perform in any
material respect any of its covenants or agreements in this Agreement, which
failure continues unremedied for thirty (30) days after the date on which
written notice of such failure, requiring the same to be remedied, shall have
been given to the Master Servicer by the Trustee or to the Master Servicer and
the Trustee by Certificateholders (other than the Class X-IO and Class R
Certificates) evidencing, as to such Class, Percentage Interests aggregating not
less than 51%;

      (c) Any assignment by the Master Servicer of its duties or rights
hereunder except as specifically permitted hereunder;

                                      -74-
<PAGE>

      (d) A court or other governmental authority having jurisdiction in the
premises shall have entered a decree or order for relief in respect of the
Master Servicer in an involuntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or appointing a
receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar
official) of the Master Servicer, as the case may be, or for any substantial
liquidation of its affairs, and such order remains undischarged and unstayed for
at least sixty (60) days;

      (e) The Master Servicer shall have commenced a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or shall have consented to the entry of an order for relief in an
involuntary case under any such law, or shall have consented to the appointment
of or taking possession by a receiver, liquidator, assignee, trustee, custodian
or sequestrator (or other similar official) of the Master Servicer or for any
substantial part of its property, or shall have made any general assignment for
the benefit of its creditors, or shall have failed to, or admitted in writing
its inability to, pay its debts as they become due, or shall have taken any
corporate action in furtherance of the foregoing;

      (f) The failure of the Master Servicer to be an Eligible Servicer;

      (g) Provided that Standard & Poor's shall not have notified the Master
Servicer or the Trustee that the Cumulative Realized Loss Termination Event no
longer constitutes an Event of Termination, upon the occurrence and during the
continuance of a Cumulative Realized Loss Termination Event, and after the
giving of written notice, to the effect that such Certificateholders desire to
cause an Event of Termination, to the Trustee by Certificateholders evidencing
Percentage Interests aggregating not less than 51% of the Certificates (other
than the Class X-IO and Class R Certificates); and

      (h) (1) Any failure by the Master Servicer to make a Servicing Advance to
the extent such failure materially and adversely affects the interests of the
Holders and the continuance of such failure for a period of five Business Days
after the giving of written notice of such failure, requiring the same to be
remedied, to the Master Servicer by the Trustee; or (2) any failure by the
Master Servicer to make a Monthly Advance and the continuance of such failure on
the Distribution Date.

      SECTION 7.02. Transfer.

      If an Event of Termination has occurred and is continuing, the Trustee
may, or at the written direction of Certificateholders (other than the Class
X-IO and Class R Certificates) with aggregate Percentage Interests evidencing
not less than 51% of the Offered Certificates shall, unless prohibited by
applicable law, terminate all (but not less than all) of the rights and
obligations of the Master Servicer hereunder and in and to the Mortgage Loans
(such termination being herein called a "Service Transfer"). Any such
termination shall also terminate all (but not less than all) of the rights and
obligations of any sub-servicer under a sub-servicing agreement. On receipt of
such notice (or, if later, on a date designated therein), all authority and
power of the Master Servicer under this Agreement, whether with respect to the
Mortgage Loans, the Files or otherwise (except with respect to the Certificate
Account, the transfer of which shall be governed by Section 7.06), shall pass to
and be vested in the Trustee pursuant to and under this Section 7.02 (subject to
applicable law regarding the Trustee's ability to make advances), unless

                                      -75-
<PAGE>

prohibited by applicable law; and, without limitation, the Trustee is authorized
and empowered to execute and deliver on behalf of the Master Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments
(including, without limitation, documents required to make the Trustee or a
successor Master Servicer the sole assignee of the Mortgagee's position in, or
legal title holder of record of, each Mortgaged Property), and to do any and all
acts or things necessary or appropriate to effect the purposes of such notice of
termination. CIT Consumer Finance agrees to cooperate with the Trustee in
effecting the termination of the responsibilities and rights of the Master
Servicer hereunder, including, without limitation, the transfer to the Trustee
for administration by it of all cash amounts which shall at the time be held by
the Master Servicer for deposit, or have been deposited by the Master Servicer,
in the Certificate Account, or for its own account in connection with its
services hereafter or thereafter received with respect to the Mortgage Loans and
the execution of any documents required to make the Trustee or a successor
Master Servicer the sole assignee of the Mortgagee's position in, or legal title
holder of record of, each Mortgaged Property. The Master Servicer shall be
entitled to receive any other amounts which are payable to the Master Servicer
under this Agreement, at the time of the termination of its activities as Master
Servicer, to the extent that funds in the Certificate Account are available for
the payment thereof without reducing the amount of distributions that would be
made to Holders of the Offered Certificates or Private Certificates. The Master
Servicer shall transfer (and shall cause any sub-servicer to transfer) to the
new Master Servicer (i) the Master Servicer's records relating to the Mortgage
Loans in such electronic form as the new Master Servicer may reasonably request
and (ii) the Mortgage Loans and the Files in the Master Servicer's or a
sub-servicer's possession. The Trustee (or other successor Master Servicer) will
not be responsible for delays attributable to the outgoing Master Servicer's
failure to deliver information, defects in the information supplied by the
outgoing Master Servicer or other circumstances beyond the control of the
Trustee (or other successor Master Servicer).

      SECTION 7.03. Trustee to Act; Appointment of Successor.

      On and after the time the Master Servicer receives a notice of termination
pursuant to Section 7.02, the Trustee shall either appoint a successor servicer
who is an Eligible Servicer or shall become the successor in all respects to the
Master Servicer in its capacity as Master Servicer under this Agreement and the
transactions set forth or provided for herein and shall be subject to all the
responsibilities, duties and liabilities relating thereto placed on the Master
Servicer by the terms and provisions hereof (including, without limitation, the
obligation to make Monthly Advances pursuant to Section 8.04), and the Master
Servicer shall be relieved of such responsibilities, duties and liabilities
arising after such Service Transfer; provided, however, that (i) the Trustee (or
such other successor servicer) will not assume any obligations of CIT Consumer
Finance pursuant to Section 3.05 and (ii) the Trustee (or such other successor
servicer) shall not be liable for any acts or omissions of the Master Servicer
occurring prior to such Service Transfer or for any breach by CIT Consumer
Finance of any of its representations and warranties contained herein or in any
related document or agreement. As compensation therefor, the Trustee (or such
other successor servicer) shall, except as provided in Section 7.02 and in this
Section 7.03, be entitled to such compensation as the Master Servicer would have
been entitled to hereunder if no such notice of termination had been given.
Notwithstanding the above, the Trustee may, if it shall be unwilling so to act,
or shall, if it is legally unable so to act, appoint, or petition a court of
competent jurisdiction to appoint, an Eligible Servicer as the

                                      -76-
<PAGE>

successor to the Master Servicer hereunder in the assumption of all or any part
of the responsibilities, duties or liabilities of the Master Servicer hereunder.
Pending appointment of a successor to the Master Servicer hereunder, unless the
Trustee is prohibited by law from so acting, the Trustee shall act in such
capacity as hereinabove provided. In connection with such appointment and
assumption, the Trustee may make such arrangements for the compensation of such
successor out of payments on Mortgage Loans as it and such successor shall
agree; provided, however, that no such compensation shall, without the written
consent of 100% of the Certificateholders, be in excess of the Master Servicing
Fee. The Trustee and such successor shall take such action, consistent with this
Agreement, as shall be necessary to effectuate any such succession. The outgoing
Master Servicer shall be obligated to pay the costs associated with the transfer
of the servicing files and records to the Trustee (or other successor Master
Servicer).

      SECTION 7.04. Notification to Certificateholders and to Rating Agencies.

      (a) Promptly following the occurrence of any Event of Termination, the
Master Servicer shall give written notice thereof to the Trustee,
Certificateholders at their respective addresses appearing on the Certificate
Register and to the Rating Agencies.

      (b) Within ten (10) days following any termination or appointment of a
successor to the Master Servicer pursuant to this Article VII, the Trustee shall
give written notice thereof to Certificateholders at their respective addresses
appearing on the Certificate Register.

      (c) The Trustee shall give written notice to the Rating Agencies at least
thirty (30) days prior to the date upon which any Eligible Servicer (other than
the Trustee) is to assume the responsibilities of Master Servicer pursuant to
Section 7.03, naming such successor Master Servicer.

      SECTION 7.05. Effect of Transfer.

      (a) After the Service Transfer, the Trustee or new Master Servicer may
notify the Mortgagors to make payments directly to the new Master Servicer that
are due under the Mortgage Loans after the effective date of the Service
Transfer.

      (b) After the Service Transfer, the replaced Master Servicer shall have no
further obligations with respect to the management, administration, servicing or
collection of the Mortgage Loans and the new Master Servicer shall have all of
such obligations, except that the replaced Master Servicer shall remain liable
for any liability of the replaced Master Servicer hereunder that was already
accrued at the time of the Service Transfer and except that the replaced Master
Servicer will transmit or cause to be transmitted directly to the new Master
Servicer for its own account, promptly on receipt and in the same form in which
received, any amounts (properly endorsed where required for the new Master
Servicer to collect them) received as payments upon or otherwise in connection
with the Mortgage Loans.

      (c) A Service Transfer shall not affect the rights and duties of the
parties hereunder (including but not limited to the indemnities and other
agreements of the Master Servicer and CIT Consumer Finance pursuant to Article X
and Sections 3.05, 4.03 and 11.05)

                                      -77-
<PAGE>

other than those relating to the management, administration, servicing or
collection of the Mortgage Loans.

      SECTION 7.06. Transfer of Accounts.

      Notwithstanding the provisions of Section 7.02, if the Certificate Account
shall be maintained with the Master Servicer and an Event of Termination shall
occur and be continuing, the Master Servicer shall, promptly after receipt of a
notice of termination, if any, pursuant to Section 7.02, establish, or cooperate
with the Trustee to establish, new accounts in trust for the Certificateholders
conforming with the requirements of this Agreement with an Eligible Institution
other than the Master Servicer and promptly transfer, or cooperate with the
Trustee to transfer, all funds in the Certificate Account to such new accounts,
which shall thereafter be deemed the Certificate Account for the purposes
hereof.

                                  ARTICLE VIII

                       DISTRIBUTIONS AND WITHDRAWALS FROM
                               CERTIFICATE ACCOUNT

      SECTION 8.01. Monthly Distributions.

      (a) Distributions on the Certificates shall be made from funds in the
Certificate Account. Each Certificateholder as of a Record Date shall be paid on
the next succeeding Distribution Date by check mailed to such Certificateholder
at the address for such Certificateholder appearing on the Certificate Register
(or, if a Holder of an Offered Certificate holds an aggregate Percentage
Interest of at least 5% of the Offered Certificates or a Holder of a Private
Certificate holds a Certificate with a Percentage Interest of 50% of such
Certificate, and if such Certificateholder so requests, by wire transfer of
immediately available funds pursuant to written instructions delivered to the
Trustee at least five days prior to the related Record Date, which instructions,
until revised, shall remain operative for all Distribution Dates thereafter),
such Certificateholder's Percentage Interest of the amount to be distributed.
Final payment on any Certificate shall be made only upon presentation and
surrender of such Certificate at the office or agency of the Paying Agent.

      (b) Each distribution with respect to a Book-Entry Certificate shall be
paid to the Depository, which shall credit the amount of such distribution to
the accounts of its Depository Participants in accordance with its normal
procedures. Each Depository Participant shall be responsible for disbursing such
distribution to the Certificateholder that it represents and to each indirect
participating brokerage firm (a "brokerage firm" or "indirect participating
firm") for which it acts as agent. Each brokerage firm shall be responsible for
disbursing funds to the Certificateholder that it represents. All such credits
and disbursements with respect to a Book-Entry Certificate are to be made by the
Depository and the Depository Participants in accordance with the provisions of
the Book-Entry Certificates and the Depository's rules. Neither the Trustee, the
Certificate Registrar, the Sellers, the Depositor nor the Master Servicer shall
have any responsibility therefor except as otherwise provided by applicable law.

                                      -78-
<PAGE>

      (c) On each Distribution Date, the Trustee, based solely on the Monthly
Report furnished to it pursuant to Section 6.01, shall make the following
allocations, disbursements and transfers, from amounts deposited in the
Certificate Account in the following order of priority, and each such
allocation, transfer and disbursement shall be treated as having occurred only
after all preceding allocations:

      A. The Monthly Interest Amount is required to be distributed in the
following order of priority until such amounts have been fully distributed:

      1.    first, to the Master Servicer, the Master Servicer Fee;

      2.    second, to each Class of the Senior Certificates, the Class Monthly
            Interest Amount and any Class Interest Carryover Shortfall for such
            Class on that Distribution Date; provided, however, if the interest
            collections are not sufficient to make a full distribution of the
            Class Monthly Interest Amount and any Class Interest Carryover
            Shortfall with respect to the Senior Certificates, the interest
            amounts will be distributed pro rata among each such Class of Senior
            Certificates based on the ratio of:

            (i)   the Class Monthly Interest Amount and Class Interest Carryover
                  Shortfall for that Class to

            (ii)  the total amount of Class Monthly Interest Amount and any
                  Class Interest Carryover Shortfall for the Senior
                  Certificates;

      3.    third, to the Class M-1 Certificates, the Class Monthly Interest
            Amount for that Class and Distribution Date;

      4.    fourth, to the Class M-2 Certificates, the Class Monthly Interest
            Amount for that Class and Distribution Date;

      5.    fifth, to the Class B Certificates, the Class Monthly Interest
            Amount for that Class and Distribution Date; and

      6.    sixth, any remainder will be treated as Excess Interest and
            distributed pursuant to clause C. below.

      B. The Principal Distribution Amount for that Distribution Date is
required to be distributed in the following order of priority until the
Principal Distribution Amount has been fully distributed:

      1.    to the Senior Certificates (other than the Class A-IO Certificates),
            the Senior Principal Distribution Amount for such Distribution Date,
            excluding any Subordination Increase Amount or OC Holiday Realized
            Loss Amount included in that amount, as follows:

            (i)   to the Class A-6 Certificates, the Class A-6 Lockout
                  Distribution Amount for that Distribution Date;

                                      -79-
<PAGE>

            (ii)  to the Class A-1 Certificates, until the Certificate Principal
                  Balance of that class has been reduced to zero:

            (iii) to the Class A-2 Certificates, until the Certificate Principal
                  Balance of that class has been reduced to zero;

            (iv)  to the Class A-3 Certificates, until the Certificate Principal
                  Balance of that class has been reduced to zero;

            (v)   to the Class A-4 Certificates, until the Certificate Principal
                  Balance of that class has been reduced to zero;

            (vi)  to the Class A-5 Certificates, until the Certificate Principal
                  Balance of that class has been reduced to zero; and

            (vii) to the Class A-6 Certificates, until the Certificate Principal
                  Balance of that class has been reduced to zero;

      2.    to the Class M-1 Certificates, the Class M-1 Principal Distribution
            Amount for that Class and such Distribution Date, excluding any
            Subordination Increase Amount or OC Holiday Realized Loss Amount
            included in that amount, until the Certificate Principal Balance of
            that Class has been reduced to zero;

      3.    to the Class M-2 Certificates, the Class M-2 Principal Distribution
            Amount for that Class and such Distribution Date, excluding any
            Subordination Increase Amount or OC Holiday Realized Loss Amount
            included in that amount, until the Certificate Principal Balance of
            that Class has been reduced to zero; and

      4.    to the Class B Certificates, the Class B Principal Distribution
            Amount for that Class and such Distribution Date, excluding any
            Subordination Increase Amount or OC Holiday Realized Loss Amount
            included in that amount, until the Certificate Principal Balance of
            that Class has been reduced to zero.

      C. Any Monthly Interest Amount remaining pursuant to clause A.6 above,
together with any Excess Overcollateralization Amount, will be treated as Excess
Interest and will be required to be distributed in the following order of
priority until fully distributed:

      1.    the Subordination Increase Amount or, during the OC Spread Holiday,
            the OC Holiday Realized Loss Amount for such Distribution Date,
            payable in the order of priority set forth in clauses B.1 through
            B.4 above;

      2.    to the Class M-1 Certificates, the Class Interest Carryover
            Shortfall for that Class;

      3.    to the Class M-1 Certificates, the Class Principal Carryover
            Shortfall for that Class;

                                      -80-
<PAGE>

      4.    to the Class M-2 Certificates, the Class Interest Carryover
            Shortfall for that Class;

      5.    to the Class M-2 Certificates, the Class Principal Carryover
            Shortfall for that Class;

      6.    to the Class B Certificates, the Class Interest Carryover Shortfall
            for that Class;

      7.    to the Class B Certificates, the Class Principal Carryover Shortfall
            for that Class;

      8.    to the Class X-IO Certificates, for deposit to the Supplemental
            Interest Reserve Fund, the lesser of (a) the Class X-IO Distribution
            Amount and (b) the WAC Excess;

      9.    first, concurrently, to the Class A-1, Class A-4, Class A-5 and
            Class A-6 Certificates, pro rata, the related Net WAC Cap Carryover
            from and to the extent of funds on deposit in the Supplemental
            Interest Reserve Fund, and second, sequentially, to the Class M-1,
            Class M-2 and Class B Certificates, payable in that order of
            priority, the related Net WAC Cap Carryover from and to the extent
            of funds on deposit in the Supplemental Interest Reserve Fund;

      10.   to the Trustee as reimbursement for all Trustee Reimbursable
            Expenses incurred in connection with its duties and obligations
            under the Agreement to the extent not paid by the Master Servicer;

      11.   to the Master Servicer to the extent of any unreimbursed Monthly
            Advances;

      12.   To the Class X-IO Certificates, an amount equal to the Class X-IO
            Distribution Amount less any amounts thereof applied pursuant to
            clauses C.8 through C.11 above; and

      13.   To the Class R Certificates, the remainder.

      (d) Notwithstanding any of the foregoing provisions, the aggregate amounts
distributed on all Distribution Dates to the Holders of the related Offered
Certificates on account of principal pursuant to Section 8.01(c) shall not
exceed the original Certificate Principal Balance of the related Offered
Certificates.

      (e) [Reserved]

      (f) [Reserved]

      (g) Notwithstanding the foregoing, amounts otherwise distributable to a
Certificateholder pursuant to such paragraph which are required to be withheld
and remitted to a

                                      -81-
<PAGE>

taxing authority shall be withheld and remitted to such taxing authority, and
such amounts shall be treated as actually distributed to such Certificateholder
for all purposes of this Agreement.

      (h) The Master Servicer may direct the Trustee to pay to the Master
Servicer an amount equal to unreimbursed Servicing Advances (without interest)
with respect to each Mortgage Loan for which the Master Servicer has made a
Servicing Advance, to the extent not netted from deposits to the Certificate
Account pursuant to Section 5.05 and only to the extent funds are available for
distribution from the Certificate Account, by wire transfer of immediately
available funds, from subsequent collections with respect to interest on or with
respect to such Mortgage Loan, Liquidation Proceeds and Insurance Proceeds or
the Purchase Price of such Mortgage Loan. The Trustee (in its capacity as
Trustee) has no obligation to make advances (other than Monthly Advances as
specified in Section 8.04(d)) to the Master Servicer or any other party
hereunder.

      (i) The Bank of New York hereby accepts the appointment to act as the
paying agent (the "Paying Agent") hereunder and shall make the payments to the
Certificateholders required by this Agreement. The Bank of New York, in its
capacity as Paying Agent, shall maintain an office at 101 Barclay Street, Floor
8 West, New York, New York 10286, Attention: Mortgage Backed Securitiese, CIT
Home Equity Loan Trust 2003-1. The Trustee hereby agrees, and shall require any
other Paying Agent (if other than the Trustee) to agree in writing, that all
amounts held by it for payment hereunder will be held in trust for the benefit
of the Certificateholders and that it will notify the Trustee of any failure by
the Master Servicer to make funds available to the Paying Agent for the payment
of amounts due on the Certificates. In respect of each Distribution Date, the
Trustee shall withdraw from the Certificate Account and deposit in an account
established by the Paying Agent for the purpose of this Section funds sufficient
to make the distribution to Certificateholders pursuant to this Section. Such
funds shall be available to the Paying Agent by 11:00 A.M. on each Distribution
Date.

      (j) The REMIC Adminsitrator, on behalf of the Trustee, shall account for
the right of an Offered Certificate to receive an amount currently in excess of
the rate on the Master REMIC Regular Interest to which such Offered Certificate
relates as a distribution first to the Class X-IO Certificate and then as a
payment by the Supplemental Interest Reserve Fund to such Certificateholder.

      (k) On any Distribution Date, the Weighted Average Net Mortgage Rate, and
the resulting Net WAC Cap, will be calculated based on the rate of interest on
each related Mortgage Loan as may be reduced by any shortfalls in interest
collection resulting from application of the Soldiers' and Sailors' Civil Relief
Act of 1940, as amended.

      SECTION 8.02. Permitted Withdrawals from the Certificate Account.

      The Trustee shall at the written direction of the Master Servicer, from
time to time as provided herein, make withdrawals from the Certificate Account
of amounts deposited in said account pursuant to Section 5.05 that are
attributable to the Mortgage Loans for the following purposes:

                                      -82-
<PAGE>

            (a) to make payments to Certificateholders and the Master Servicer
      in the amounts and in the manner provided for in Section 8.01;

            (b) to pay to CIT Consumer Finance with respect to each Mortgage
      Loan or property acquired in respect thereof that has been purchased
      pursuant to Section 3.05 or 4.03 or 5.14, all amounts received thereon and
      not required to be distributed to Certificateholders as of the date on
      which the related Principal Balance or Purchase Price is determined;

            (c) to make payments to the Master Servicer in the amounts and in
      the manner provided for in Section 8.01(h);

            (d) to reimburse the Master Servicer out of Liquidation Proceeds for
      Liquidation Expenses and taxes incurred by it, to the extent such
      reimbursement is permitted pursuant to Section 5.08;

            (e) to reimburse the Master Servicer for the payment of taxes as
      permitted by Section 5.10;

            (f) to withdraw any amount deposited in the Certificate Account that
      was not required to be deposited therein;

            (g) to pay to the Master Servicer (if CIT Consumer Finance or one of
      its Affiliates is not the Master Servicer) the Master Servicing Fees
      payable by the Master Servicer for such Distribution Date and the Master
      Servicing Fees payable by the Master Servicer from any prior Distribution
      Date previously unpaid; and

            (h) to pay to the Master Servicer net investment earnings from funds
      on deposit in the Certificate Account due to the Master Servicer pursuant
      to Section 5.05(b).

      Since, in connection with withdrawals pursuant to clause (b) of the
preceding paragraph, CIT Consumer Finance's entitlement thereto is limited to
collections or other recoveries on the related Mortgage Loan, the Master
Servicer shall keep and maintain separate accounting, on a Mortgage Loan by
Mortgage Loan basis, for the purpose of justifying any withdrawal from the
Certificate Account pursuant to such clause. The Master Servicer shall keep and
maintain an accounting for the purpose of justifying any withdrawal from the
Certificate Account pursuant to clause (f).

      SECTION 8.03. Repurchase Option.

      (a) The Trust created hereby and the respective obligations and
responsibilities of the Depositor, the Master Servicer and the Trustee created
hereby (other than the responsibility of the Trustee to make any final
distributions to Certificateholders as set forth below and the rights and
immunities of the Trustee under Article XI) shall terminate upon the earlier of
the Distribution Date following the later of the final payment or other
liquidation (or any advance with respect thereto) of the last Mortgage Loan
remaining in the Trust or the termination of the Trust pursuant to Section
12.03, or the sale by the Trustee of all the Mortgage

                                      -83-
<PAGE>

Loans and all the property acquired in respect of any Mortgage Loan remaining in
the Trust pursuant to subsection (b) below.

      (b) The Master Servicer, at its option, may purchase all of the Mortgage
Loans and all REO Property acquired in respect of any Mortgage Loan remaining in
the Trust on any Distribution Date on which the Pool Principal Balance is less
than or equal to 10% of the sum of the aggregate Loan Balance of the Initial
Mortgage Loans as of the Initial Cut-Off Date and the Original Pre-Funded Amount
(the first such Distribution Date, the "Clean-up Call Date") at a purchase price
equal to the greatest of (A) the sum of (1) 100% of the Principal Balance and
accrued interest on the Mortgage Loans of each Mortgage Loan (other than any
Mortgage Loan as to which title to the underlying property has been acquired and
whose fair market value is included pursuant to clause (2) below as of the Final
Distribution Date) and (2) the fair market value of such acquired property (as
determined by the Master Servicer as of the close of business on the third
Business Day next preceding the date upon which notice of any such termination
is furnished to Certificateholders pursuant to Section 12.03), (B) the aggregate
fair market value (as determined by the Master Servicer as of the close of
business on such third Business Day) of all of the assets of the Trust, and (C)
an amount that when added to amounts on deposit in the Certificate Account
available for distribution to Certificateholders for such Distribution Date
would result in proceeds sufficient to distribute the Aggregate Certificate
Principal Balance and interest for such Distribution Date and any unpaid
interest with respect to one or more prior Distribution Dates. The Master
Servicer shall effect such purchase by depositing such purchase price in the
Certificate Account on the Business Day immediately preceding such Distribution
Date. Promptly after such purchase, the Trustee shall execute such documents as
are presented to it by the Master Servicer and are reasonably necessary to
convey the Mortgage Loans and REO Property to the Master Servicer and deliver
the Files to the Master Servicer.

      SECTION 8.04. Compensating Interest and Monthly Advances by the Master
Servicer.

      (a) By the close of business on the day prior to each Distribution Date,
the Master Servicer shall pay to the Trust, but only to the extent of the Master
Servicing Fee for such month, with respect to each Mortgage Loan as to which the
Master Servicer received a Principal Prepayment with respect to the related Due
Period an amount ("Compensating Interest") equal to the excess of (i) 30 days'
interest on the Principal Balance of each such Mortgage Loan as of the beginning
of the related Due Period at the Mortgage Rate over, (ii) the amount of interest
actually received on the related Mortgage Loan during such Due Period.

      (b) The Master Servicer shall be required to make an advance of its own
funds no later than the fourth Business Day prior to the Distribution Date, in
the amount, if any, by which 30 days' interest at the Mortgage Rate on the then
outstanding Principal Balance of a Mortgage Loan exceeds the amount received by
the Master Servicer in respect of interest on the Mortgage Loan with respect to
the related Due Period (any such advance, a "Monthly Advance"), subject to
limitations set forth in subsection (c) below. The Master Servicer shall be
permitted to reimburse itself for a Monthly Advance (i) from late collections on
the related Mortgage Loan and (ii) as otherwise provided in subsection (c).

                                      -84-
<PAGE>

      (c) The Master Servicer shall not be obligated to make a Monthly Advance
if it determines that such Monthly Advance is a Nonrecoverable Advance. The
determination by the Master Servicer that any advance is, or if made would
constitute, a Nonrecoverable Advance, shall be evidenced by an Officer's
Certificate of the Master Servicer delivered to the Trustee and stating the
reasons for such determination. If an unreimbursed Monthly Advance shall become
a Nonrecoverable Advance, the Master Servicer shall be reimbursed from interest
collections on all of the Mortgage Loans prior to any distribution to
Certificateholders pursuant to Section 8.01(c).

      (d) In the event that the Master Servicer fails for any reason to make a
Monthly Advance required to be made pursuant to this Section 8.04, the Trustee
shall, on or before the related Distribution Date, deposit in the Certificate
Account an amount equal to the excess of (a) Monthly Advances required to be
made by the Master Servicer that would have been deposited in such Certificate
Account over (b) the amount of any Monthly Advance made by the Master Servicer
with respect to such Distribution Date; provided, however, that the Trustee
shall be required to make such Monthly Advance only if it is not prohibited by
law from doing so and it has determined that such Monthly Advance would be
recoverable from amounts to be received with respect to such Mortgage Loan,
including late payments, Liquidation Proceeds, Insurance Proceeds or otherwise.
The Trustee shall be entitled to be reimbursed from the Certificate Account for
Monthly Advances made by it pursuant to this Section 8.04(d) as if it were the
Master Servicer.

      SECTION 8.05. Supplemental Interest Reserve Fund.

      On the Closing Date, the holders of the Class X-IO Certificates will
deposit, or cause to be deposited, into the Supplemental Interest Reserve Fund,
$10,000. On each Distribution Date as to which there is WAC Excess, the Trustee
in accordance with the Monthly Report shall deposit into the Supplemental
Interest Reserve Fund an amount equal to the WAC Excess which is payable
pursuant to Section 8.01(c) clause C.9. If no WAC Excess is payable on a
Distribution Date, the Trustee in accordance with the Monthly Report shall
deposit into the Supplemental Interest Reserve Fund on behalf of the Class X-IO
Certificateholders an amount such that when added to other amounts already on
deposit in the fund, the aggregate amount on deposit therein is equal to
$10,000. For Federal and state income tax purposes, the Class X-IO
Certificateholders will be deemed to be the owners of the Supplemental Interest
Reserve Fund and all amounts deposited into the Supplemental Interest Reserve
Fund (other than the initial $10,000 deposit) shall be treated as amounts
distributed by the Master REMIC with respect to the Class X-IO Distribution
Amount. Amounts held in the Supplemental Interest Reserve Fund and not
distributable to the Offered Certificateholders on any Distribution Date will be
invested by the Trustee in Eligible Investments designated in writing by the
Class X-IO Certificateholders having maturities on or prior to the next
succeeding Distribution Date on which such amounts will be distributable to the
Offered Certificateholders. In no event shall the Trustee be liable for
investment losses on investments selected by the Class X-IO Certificateholder.
In the absence of written directions, funds on deposit in the Supplemental
Interest Reserve Fund shall remain uninvested or, at the discretion of the
Trustee, be deposited in the Trustee's "cash reserves account" (but only if such
account qualifies as an Eligible Investment) unless otherwise instructed by the
Master Servicer. Upon the termination of the Trust, or the payment in full of

                                      -85-
<PAGE>

the Offered Certificates, all amounts remaining on deposit in the Supplemental
Interest Reserve Fund will be released from the lien of the Trust and
distributed to the Class X-IO Certificateholders or their designees. The
Supplemental Interest Reserve Fund will be part of the Trust but not part of any
REMIC created hereunder and any payments to the Offered Certificates of WAC
Excess and will not be payments with respect to a "regular interest" in a REMIC
within the meaning of Code Section 860G(a)(1). The REMIC Administrator, on
behalf of the Trustee, shall account for the rights of the Offered Certificates
to received payments from the Supplemental Interest Reserve Fund as contractual
rights that are property that the trustee holds separate and apart from each
regular interest to which they relate. This obligation is intended to satisfy
the requirements of Treasury regulation section 1.860G-2(i) and shall be
interpreted and applied consistent with such regulation.

                                   ARTICLE IX

                                THE CERTIFICATES

      SECTION 9.01. The Certificates.

      The Class A-1, the Class A-2 Certificates, the Class A-3 Certificates, the
Class A-4 Certificates, the Class A-5 Certificates, the Class A-6 Certificates,
the Class M-1 Certificates, the Class M-2 Certificates, the Class B
Certificates, the Class A-IO Certificates, the Class X-IO Certificates and the
Class R Certificates shall be in substantially the forms set forth in Exhibits
A-1, A-2, A-3, A-4, A-5, A-6, A-7, A-8, A-9, A-10, B and C hereof, respectively.

      The Certificates shall be authenticated by manual signature on behalf of
the Trustee by a duly authorized Responsible Officer or authorized signatory at
the written request of the Depositor. No Certificate shall be entitled to any
benefit under this Agreement, or be valid for any purpose, unless such
Certificate has been authenticated by manual signature in accordance with this
Section, and such signature upon any Certificate shall be conclusive evidence,
and the only evidence, that such Certificate has been duly authenticated and
delivered hereunder. All Certificates shall be dated the date of their
authentication, except for those Certificates authenticated on the Closing Date,
which shall be dated the Closing Date.

      SECTION 9.02. Registration of Transfer and Exchange of Certificates.

      (a) The Trustee shall keep at the office or agency to be maintained in
accordance with Section 12.02 a "Certificate Register" in which the Trustee
shall provide for the registration of Certificates and of transfers and
exchanges of Certificates as herein provided. The Trustee initially appoints
itself to be the "Certificate Registrar" and transfer agent for the purpose of
registering Certificates and transfers and exchanges of Certificates as provided
herein. Promptly after the Closing Date the Trustee will give the Master
Servicer, in writing, the names of all Private Certificateholders and the
Trustee will give the Master Servicer, prompt written notice of any change in
the Private Certificateholders. The Trustee will give prompt written notice to
Certificateholders and the Master Servicer of any change in the Certificate
Registrar.

      (b) No transfer, sale, pledge or other disposition of any Private
Certificate or any interest therein (including any transfer by a
Certificateholder of any interest in a Book-Entry

                                      -86-
<PAGE>

Certificate) shall be made unless such transfer is made pursuant to an effective
registration statement under the Securities Act and effective registration or
qualification under applicable state securities laws or is made in a transaction
that does not require such registration or qualification. Until such time as the
Private Certificates shall be registered pursuant to a registration statement
filed under the Securities Act and the Private Certificates shall bear a legend
to the effect set forth in the preceding sentence.

      In the event that registration of a transfer of a Private Certificate or
any interest therein (including any transfer by a Certificateholder of any
interest in a Book-Entry Certificate) is to be made in reliance upon the
exemption from registration under the Securities Act contained in Rule 144A,
such transfer shall be made only to a Qualified Institutional Buyer which is
aware that the transfer of such Certificate is being made in reliance on Rule
144A and is acquiring such Certificate for its own account or for the account of
a Qualified Institutional Buyer, as the case may be, and such transferee shall
be deemed to have represented that the foregoing is true and correct and that
such transferee understands that such Certificates have not been and will not be
registered under the Securities Act and may not be reoffered, resold, pledged or
otherwise transferred except (A) to a person who such transferee reasonably
believes is a Qualified Institutional Buyer in a transaction meeting the
requirements of Rule 144A and (B) in accordance with all applicable securities
laws of the states of the United States.

      In the event that registration of a transfer of a Private Certificate or
any interest therein (including any transfer by a Certificateholder of any
interest in a Book-Entry Certificate) is to be made in reliance upon an
exemption from registration under the Securities Act (other than the exemption
from registration contained in Rule 144A) and applicable state securities laws
in order to assure compliance with the Securities Act, the transferor or the
transferee shall deliver to the Trustee and the Master Servicer an Opinion of
Counsel that such transfer may be made pursuant to an exemption from the
Securities Act (other than the exemption from registration contained in Section
3(a)(2) thereof).

      The Holder of a Private Certificate desiring to effect a transfer of such
Certificate shall, and does hereby agree to, indemnify the Trustee, the
Depositor and the Master Servicer against any liability that may result if such
transfer is not so exempt or is not made in accordance with such federal and
state laws.

      Neither the Master Servicer, the Depositor, the Certificate Registrar, the
Paying Agent, the Seller nor the Trustee is obligated to register the Private
Certificates under the Securities Act or under any state securities laws.

      Prospective transferors of Private Certificates (or Book-Entry
Certificates), and prospective transferees of Certificates (or Book-Entry
Certificates) that are Qualified Institutional Buyers buying Certificates in
reliance upon Rule 144A may request from the Master Servicer information
regarding the Trust and the Trust assets. Within five (5) Business Days of any
such request, the Master Servicer shall deliver to any such prospective
transferor or transferee (i) a copy of each Monthly Report delivered to
Certificateholders since the first Distribution Date pursuant to Section 6.05,
(ii) information relating to the Sellers, the Master Servicer, the Mortgage
Loans and this Agreement substantially in the form of the Base

                                      -87-
<PAGE>

Prospectus and the Prospectus Supplement and (iii) such other information as may
be required to comply with Rule 144A and any interpretation thereof.

      (c) As a condition to the registration of any Transfer of any Private
Certificate, the prospective transferee shall deliver to the Certificate
Registrar and the Trustee a certificate substantially in the form attached
hereto as Exhibit I (a "Private Certificate Transferee Letter") or shall supply
other evidence to the same effect satisfactory to the Master Servicer.

      (d) Each Person who has or who acquires any Ownership Interest in a Class
R Certificate shall be deemed by the acceptance or acquisition of such Ownership
Interest to have agreed to be bound by the following provisions and to have
irrevocably appointed the Master Servicer as its attorney-in-fact to negotiate
the terms of any mandatory sale under clause (vi) below and to execute all
instruments of transfer and to do all other things necessary in connection with
any such sale, and the rights of each Person acquiring any Ownership Interest in
a Class R Certificate are expressly subject to the following provisions:

            (i) Each Person holding or acquiring any Ownership Interest in a
      Class R Certificate shall be a Permitted Transferee and shall promptly
      notify the Master Servicer of any change or impending change in its status
      as a Permitted Transferee.

            (ii) No Ownership Interest in a Class R Certificate may be
      Transferred without the express written consent of the Master Servicer,
      and the Trustee shall not register the Transfer of any Class R Certificate
      without such consent with respect to any proposed Transfer. In connection
      with any proposed Transfer of any Ownership Interest in a Class R
      Certificate, the Master Servicer shall, as a condition to such consent,
      require delivery to it, form and substance satisfactory to it, and the
      proposed Transferee shall deliver to the Master Servicer and the Trustee,
      the following:

                  (A) an affidavit (a "Transfer Affidavit") of the proposed
            Transferee, in the form attached as Exhibit H hereto, that it is not
            a "disqualified organization" within the meaning of Section
            860E(e)(5) of the Code, and that the proposed Transferee is not
            acquiring its Ownership Interest in the Class R Certificate as a
            nominee, trustee or agent for, or for the benefit of, any Person who
            is not a Permitted Transferee; and

                  (B) an express agreement by the proposed Transferee to be
            bound by and to abide by the provisions of this Section and the
            restrictions noted on the face of the Class R Certificates.

            (iii) Notwithstanding the delivery of a Transfer Affidavit by a
      proposed Transferee under clause (ii) above, if the Master Servicer has
      actual knowledge that the Transfer Affidavit is false, no Transfer of an
      Ownership Interest in a Class R Certificate to such proposed Transferee
      shall be effected.

            (iv) Each Person holding or acquiring any Ownership Interest in a
      Class R Certificate shall agree (A) to require a Transfer Affidavit from
      any other Person to whom such Person attempts to Transfer its Ownership
      Interest in a Class R Certificate

                                      -88-
<PAGE>

      and (B) not to Transfer its Ownership Interest in a Class R Certificate or
      to cause the Transfer of an Ownership Interest in a Class R Certificate to
      any other Person if it has actual knowledge that such Transfer Affidavit
      is false.

            (v) Any attempted or purported Transfer of any Ownership Interest in
      a Class R Certificate in violation of the provisions of this Section shall
      be absolutely null and void and shall vest no rights in the purported
      Transferee. If any purported Transferee shall become a Holder of a Class R
      Certificate in violation of the provisions of this Section, then, upon
      discovery by or due notification of the Trustee that the registration of
      Transfer of such Class R Certificate was not in fact permitted by this
      Section, the last preceding Permitted Transferee shall be restored to all
      rights as Holder thereof retroactive to the date of registration of
      Transfer of such Class R Certificate. The Trustee shall be under no
      liability to any Person for any registration of transfer of a Class R
      Certificate that is in fact not permitted by this Section or for making
      any payments due on such Certificate to the Holder thereof or taking any
      other action with respect to such Holder under the provisions of this
      Agreement so long as the Transfer was registered with the express prior
      written consent of the Master Servicer. The Trustee shall be entitled but
      not obligated to recover from any Holder of a Class R Certificate that was
      in fact not a Permitted Transferee at the time it became a Holder or, at
      such subsequent time as it became other than a Permitted Transferee, all
      payments made on such Class R Certificate at and after either such time.
      Any such payments so recovered by the Trustee shall be paid and delivered
      by the Trustee to the last preceding Permitted Transferee of such
      Certificate.

            (vi) If any purported Transferee shall become a Holder of a Class R
      Certificate in violation of the restrictions in this Section, then the
      Master Servicer shall have the right without notice to the Holder or any
      prior Holder of such Class R Certificate, to sell such Class R Certificate
      to a purchaser selected by the Master Servicer on such terms as the Master
      Servicer may choose. Such purchaser may be the Master Servicer itself or
      any Affiliate of the Master Servicer. The proceeds of such sale, net of
      commissions (which may include commissions payable to the Master Servicer
      or its Affiliates), expenses and taxes due, if any, will be remitted by
      the Master Servicer to the last preceding Permitted Transferee of such
      Class R Certificate, except that in the event that the Master Servicer
      determines that the Holder or any prior Holder of such Class R Certificate
      may be liable for any amount due under this Section or any other provision
      of this Agreement, the Master Servicer may withhold a corresponding amount
      from such remittance as security for such claim. The terms and conditions
      of any sale under this clause (vi) shall be determined in the sole
      discretion of the Master Servicer, and it shall not be liable to any
      Person having an Ownership Interest in a Class R Certificate as a result
      of its exercise of such discretion.

      Upon notice to the Master Servicer that any legal or beneficial interest
in any portion of a Class R Certificate has been transferred, either directly or
indirectly to any person that is not a Permitted Transferee or an agent
(including a broker, nominee, or middleman) of such Transferee in contravention
of the foregoing restrictions, the Master Servicer agrees to furnish to the
Internal Revenue Service and to the transferor of such Class R Certificate or
such

                                      -89-
<PAGE>

agent such information necessary to the application of Section 860E(e) of the
Code as may be required by the Code or any regulations or administrative
pronouncements thereunder, including but not limited to the present value of the
total anticipated excess inclusions with respect to such Class R Certificate (or
portion thereof) for periods after such transfer. At the election of the Master
Servicer, the Master Servicer may charge a reasonable fee for computing and
furnishing such information to the transferor or to such agent referred to
above; however, the Master Servicer shall in no event be excused from furnishing
such information to the Internal Revenue Service. The foregoing restrictions on
transfer contained in this Section 9.02(d) shall cease to apply to Transfers
occurring on or after the date on which there shall have been delivered to the
Trustee, the Depositor and the Master Servicer, in form and substance
satisfactory to the Master Servicer, an Opinion of Counsel that eliminating such
restrictions will not cause any of the REMICs to fail to qualify as a REMIC at
any time while the Certificates are outstanding.

      (e) At the option of a Certificateholder, Certificates may be exchanged
for other Certificates of the same Class of authorized denominations of the same
aggregate denomination, upon surrender of the Certificates to be exchanged at
such office. Whenever any Certificates are so surrendered for exchange, the
Trustee shall execute and deliver on behalf of the Trust, and the Trustee shall
authenticate, the Certificates which the Certificateholder making the exchange
is entitled to receive. Every Certificate presented or surrendered for transfer
or exchange shall be duly endorsed by, or shall be accompanied by a written
instrument of transfer in form satisfactory to the Trustee and the Certificate
Registrar duly executed by, the Holder thereof or his or her attorney duly
authorized in writing.

      (f) Except as provided in paragraph (g) below the Book-Entry Certificates
shall at all times remain registered in the name of the Depository or its
nominee and at all times: (i) registration of the Offered Certificates may not
be transferred by the Trustee except to another Depository; (ii) the Depository
shall maintain book-entry records with respect to the Certificateholders and
with respect to ownership and transfers of such Offered Certificates; (iii)
ownership and transfers of registration of the Offered Certificates on the books
of the Depository shall be governed by applicable rules established by the
Depository; (iv) the Depository may collect its usual and customary fees,
charges and expenses from its Depository Participants; (v) the Trustee shall
deal with the Depository, Depository Participants and indirect participating
firms as representatives of the Certificateholders of the Offered Certificates
for purposes of exercising the rights of Holders under this Agreement, and
requests and directions for and votes of such representatives shall not be
deemed to be inconsistent if they are made with respect to different
Certificateholders; and (vi) the Trustee may rely and shall be fully protected
in relying upon information furnished by the Depository with respect to its
Depository Participants and furnished by the Depository Participants with
respect to indirect participating firms and persons shown on the books of such
indirect participating firms as direct or indirect Certificateholders.

      All transfers by Certificateholders of Book-Entry Certificates shall be
made in accordance with the procedures established by the Depository Participant
or brokerage firm representing such Certificateholder. Each Depository
Participant shall only transfer Book-Entry Certificates of Certificateholders it
represents or of brokerage firms for which it acts as agent in accordance with
the Depository's normal procedures.

                                      -90-
<PAGE>

      (g) If (x)(i) the Depositor or the Depository advises the Trustee in
writing that the Depository is no longer willing or able properly to discharge
its responsibilities as Depository, and (ii) the Trustee or the Depositor is
unable to locate a qualified successor, or (y) the Depositor at its sole option
advises the Trustee in writing that it elects to terminate the book-entry system
through the Depository, the Trustee shall notify all Certificateholders, through
the Depository, of the occurrence of any such event and of the availability of
definitive, fully registered Offered Certificates (the "Definitive
Certificates") to Certificateholders requesting the same. Upon surrender to the
Trustee of the Offered Certificates by the Depository, accompanied by
registration instructions from the Depository for registration, the Trustee
shall issue the Definitive Certificates. Neither the Depositor nor the Trustee
shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of Definitive Certificates all references herein to
obligations imposed upon or to be performed by the Depository shall be deemed to
be imposed upon and performed by the Trustee, to the extent applicable with
respect to such Definitive Certificates and the Trustee shall recognize the
Holders of the Definitive Certificates as Certificateholders hereunder.

      (h) On or prior to the Closing Date, there shall be delivered to the
Depository one Class A-1 Certificate, one Class A-IO Certificate, one Class A-2
Certificate, one Class A-3 Certificate, one Class A-4 Certificate, one Class A-5
Certificate, one Class A-6 Certificate, one Class M-1 Certificate, one Class M-2
Certificate and one Class B Certificate, each in registered form registered in
the name of the Depository's nominee, Cede & Co., the total face amount of which
represents 100% of the Certificate Principal Balance or Notional Amount as of
the Closing Date of each Offered Certificate. If, however, the aggregate
principal or notional amount of a Class of Offered Certificates exceeds
$400,000,000, one Offered Certificate will be issued with respect to each
$400,000,000 of principal or notional amount and an additional Certificate of
such Class or Classes will be issued with respect to any remaining principal or
notional amount. Each such Offered Certificate registered in the name of the
Depository's nominee shall bear the following legend:

      "Unless this Certificate is presented by an authorized representative of
The Depository Trust Company to the Trustee or its agent for registration of
transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or such other name as requested by an authorized
representative of The Depository Trust Company (and any payment is made to Cede
& Co. or to such other entity as is requested by an authorized representative of
the Depository Trust Company), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered
owner hereof, Cede & Co., has an interest herein."

      (i) No transfer of a Private Certificate shall be made unless the Trustee
shall have received either: (i) a representation letter from the transferee of
such Private Certificate, acceptable to and in form and substance satisfactory
to the Trustee (which may be combined with the investment letter required by
subsection (b) above), to the effect that such transferee is not an employee
benefit plan subject to Section 406 of ERISA nor a plan or other arrangement
subject to Section 406 of ERISA nor a plan or other arrangement subject to
Section 4975 of the Code (collectively, a "Plan"), nor is acting on behalf of
any Plan nor using the assets of any Plan

                                      -91-
<PAGE>

to effect such transfer or (ii) in the event that any Private Certificate is
purchased by a Plan, or by a person or entity acting on behalf of any Plan or
using the assets of any Plan to effect such transfer (including the assets of
any Plan held in an insurance company separate or general account), an Opinion
of Counsel, acceptable to and in form and substance satisfactory to the Trustee,
which Opinion of Counsel shall be at the expense of the transferee and shall not
be at the expense of either the Depositor, the Trustee or the Trust Estate, to
the effect that the purchase or holding of any Private Certificates will not
result in any non-exempt prohibited transaction under ERISA and/or Section 4975
of the Code, and will not subject the Trustee to any obligation or liability in
addition to those expressly undertaken under this Agreement. Notwithstanding
anything else to the contrary herein, any purported transfer of a Certificate to
or on behalf of any Plan without the delivery to the Trustee of an Opinion of
Counsel as described above shall be null and void and of no effect.

      (j) Notwithstanding anything to the contrary contained in this Section
9.02, the Class R Certificates and Class X-IO Certificates may be transferred to
The CIT GP Corporation III, without regard to Section 9.02(c) above.

      SECTION 9.03. No Charge; Disposition of Void Certificates.

      No service charge shall be made to a Certificateholder for any transfer or
exchange of Certificates, but the Certificate Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of Certificates. All Certificates
surrendered for transfer and exchange shall be disposed of in a manner approved
by the Trustee.

      SECTION 9.04. Mutilated, Destroyed, Lost or Stolen Certificates.

      If (a) any mutilated Certificate is surrendered to the Certificate
Registrar, or the Certificate Registrar receives evidence to its satisfaction of
the destruction, loss or theft of any Certificate, and (b) there is delivered to
the Certificate Registrar and the Trustee such security or indemnity as may be
required by each to save each of them harmless, then in the absence of notice to
the Certificate Registrar or the Trustee that such Certificate has been acquired
by a bona fide purchaser, the Trustee shall authenticate, and the Trustee shall
execute and deliver on behalf of the Trust, in exchange for or in lieu of any
such mutilated, destroyed, lost or stolen Certificate, a new Certificate of the
same Class and same denomination. Upon the issuance of any new Certificate under
this Section 9.04, the Trustee may require the payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses connected therewith. Any duplicate Certificate
issued pursuant to this Section 9.04 shall constitute complete and indefeasible
evidence of ownership of the Percentage Interest evidenced thereby, as if
originally issued, whether or not the destroyed, lost or stolen Certificate
shall be found at any time.

      SECTION 9.05. Persons Deemed Holders.

      Prior to due presentation of a Certificate for registration of transfer,
the Master Servicer, the Depositor, the Trustee, the Paying Agent and the
Certificate Registrar may treat the person in whose name any Certificate is
registered as the owner of such Certificate for the

                                      -92-
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purpose of receiving remittances pursuant to Section 8.01 and for all other
purposes whatsoever, and none of the Master Servicer, the Depositor, the
Trustee, the Certificate Registrar, the Paying Agent or any agent of the Master
Servicer, the Depositor, the Trustee, the Paying Agent or the Certificate
Registrar shall be affected by notice to the contrary.

      SECTION 9.06. Access to List of Certificateholders' Names and Addresses.

      The Certificate Registrar will furnish to the Trustee, the Master Servicer
and the Depositor within five Business Days after receipt by the Certificate
Registrar of a request therefor from the Trustee, the Master Servicer or the
Depositor, in writing, a list, in such form as the Trustee, the Master Servicer
or the Depositor may reasonably require, of the names and addresses of the
Certificateholders as of the most recent Record Date. If three or more Holders
of Certificates or Holders of Certificates evidencing, as to any Class,
Percentage Interests aggregating 25% or more (hereinafter referred to as
"Applicants") apply in writing to the Trustee, and such application states that
the Applicants desire to communicate with other Certificateholders with respect
to their rights under this Agreement or under the Certificates and is
accompanied by a copy of the communication which such Applicants propose to
transmit, then the Trustee shall, within five Business Days after the receipt of
such application, afford such Applicants access during normal business hours to
the most recent list of Certificateholders held by the Trustee. If such list is
as of a date more than ninety (90) days prior to the date of receipt of such
Applicants' request, the Trustee shall promptly request from the Certificate
Registrar a current list as provided above, and shall afford such Applicants
access to such list promptly upon receipt. Every Certificateholder, by receiving
and holding a Certificate, agrees with the Certificate Registrar and the Trustee
that none of the Depositor, the Master Servicer, the Certificate Registrar or
the Trustee shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Certificateholders hereunder,
regardless of the source from which such information was derived.

      SECTION 9.07. Authenticating Agents.

      The Trustee may appoint one or more Authenticating Agents with power to
act on its behalf and subject to its direction in the authentication of the
Certificates. For all purposes of this Agreement, the authentication of
Certificates by the Authenticating Agent pursuant to this Section shall be
deemed to be the authentication of Certificates "by the Trustee."

                                   ARTICLE X

                                   INDEMNITIES

      SECTION 10.01. Liabilities to Mortgagors.

      No liability to any Mortgagor under any of the Mortgage Loans arising out
of any act or omission to act of the Master Servicer in servicing the Mortgage
Loans prior to the Closing Date is intended to be assumed by the Depositor, the
Trust, the Trustee or the Certificateholders under or as a result of this
Agreement and the transactions contemplated hereby and, to the maximum extent
permitted and valid under mandatory provisions of law, the Depositor, the Trust,
the Trustee and the Certificateholders expressly disclaim such assumption.

                                      -93-
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      SECTION 10.02. Tax Indemnification.

      CIT Consumer Finance will pay, and shall indemnify, defend, and hold
harmless the Trustee, the Trust, and the Certificateholders from and against,
any taxes that may at any time be asserted with respect to, and as of the date
of, the transfer of the Mortgage Loans to the Trust, including, without
limitation, any sales, gross receipts, personal or real property, privilege or
license taxes (but not including any federal, state or other taxes arising out
of the creation of the Trust and the issuance of the Certificates or
distributions with respect thereto) and costs, expenses and reasonable counsel
fees in defending against the same.

      SECTION 10.03. Master Servicer's Indemnities.

      The Master Servicer (excepting the Trustee if it is Master Servicer) will
indemnify, defend, and hold harmless the Trustee, the Custodian, the Paying
Agent, the Trust, and the Certificateholders from and against any and all costs,
expenses, losses, claims, damages, and liabilities to the extent that such cost,
expense, loss, claim, damage, or liability arose out of, or was imposed upon
such Persons, through the willful misfeasance, negligence, or bad faith of the
Master Servicer in the performance of its duties under this Agreement or by
reason of reckless disregard of its obligations and duties under this Agreement.

      The Master Servicer (excepting the Trustee if it is Master Servicer) will
indemnify, defend, and hold harmless from and against, and pay to the Trustee
all costs, expenses, losses, claims, damages, and liabilities arising out of or
incurred in connection with the acceptance or performance of the trusts and
duties contained in this Agreement in accordance with the terms and conditions
herein, except to the extent that such cost, expense, loss, claim, damage or
liability: (a) shall be due to the willful misconduct, gross negligence or bad
faith of the Trustee; (b) relates to any tax other than the taxes with respect
to which the Master Servicer shall be required to indemnify the Trustee pursuant
to this Agreement; (c) shall arise from the Trustee's breach of any of its
representations or warranties set forth in this Agreement; or (d) shall arise
out of or be incurred in connection with the acceptance or performance by the
Trustee of the duties of successor Master Servicer hereunder.

      SECTION 10.04. Operation of Indemnities.

      The indemnification provided under this Article shall include reasonable
fees and expenses of counsel; provided that the Master Servicer shall only be
required to pay the fees and expenses of one counsel, selected by the related
indemnitee and reasonably satisfactory to Master Servicer, in any single
litigation (or related proceedings); provided further, however, if the Trustee
obtains the written advice of counsel (of national reputation) that it may have
conflicting claims with another indemnitee or the Master Servicer or its
interests may be adverse to another indemnitee or the Master Servicer, then the
Master Servicer shall pay for the cost of one law firm of national reputation
selected by the Trustee, and approved by the Master Servicer (which approval
shall not be unreasonably withheld). If the Master Servicer shall have made any
indemnity payments pursuant to this Agreement and the recipient thereafter
collects any of such amounts from others, the recipient will promptly repay such
amounts to the Master Servicer and/or the Depositor, without interest. The
indemnities under this Agreement shall survive the resignation or removal of the
Trustee, or the termination of this Agreement.

                                      -94-
<PAGE>

      SECTION 10.05. CIT Consumer Finance Indemnification.

      CIT Consumer Finance will pay, and shall indemnify, defend, and hold
harmless the Trustee and the Trust from and against any and all costs, expenses,
losses, claims, damages, and liabilities imposed upon the Trust arising out of
or based upon a breach of a representation or warranty made by CIT Consumer
Finance hereunder.

                                   ARTICLE XI

                                   THE TRUSTEE

      SECTION 11.01. Duties of Trustee.

      The Trustee, prior to the occurrence of an Event of Termination and after
the curing of all Events of Termination which may have occurred, undertakes to
perform such duties and only such duties as are specifically set forth in this
Agreement. If an Event of Termination has occurred (which has not been cured),
the Trustee shall exercise such of the rights and powers vested in it by this
Agreement, and use the same degree of care and skill in their exercise, as a
prudent person would exercise or use under the circumstances in the conduct of
his own affairs.

      The Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Trustee which are specifically required to be furnished pursuant to any
provision of this Agreement, shall examine them to determine whether they
conform as to form to the requirements of this Agreement but shall have no duty
to verify the factual content therein, including mathematical calculations.

      Subject to Section 11.03, no provision of this Agreement shall be
construed to relieve the Trustee from liability for its own negligent action,
its own negligent failure to act or its own willful misconduct; provided,
however, that:

      (a) Prior to the occurrence of an Event of Termination, and after the
curing of all such Events of Termination which may have occurred, the duties and
obligations of the Trustee shall be determined solely by the express provisions
of this Agreement, the Trustee shall not be liable except for the performance of
such duties and obligations as are specifically set forth in this Agreement, no
implied covenants or obligations shall be read into this Agreement against the
Trustee and, in the absence of bad faith on the part of the Trustee, the Trustee
may conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon any certificates or opinions furnished to
the Trustee and conforming to the requirements of this Agreement;

      (b) The Trustee shall not be personally liable for an error of judgment
made in good faith by a Responsible Officer of the Trustee, unless it shall be
proved that the Trustee was negligent in ascertaining the pertinent facts;

      (c) The Trustee shall not be (i) personally liable for any action taken,
suffered or omitted by it in good faith and reasonably believed by it to be
authorized or within the

                                      -95-
<PAGE>

discretion or rights or powers conferred upon it by this Agreement and (ii)
answerable or accountable under any circumstances except for its own negligence
or willful misconduct;

      (d) The Trustee shall not be personally liable with respect to any action
taken, suffered or omitted to be taken by it in good faith in accordance with
the direction of the Holders of 25% or more of the Certificates relating to the
time, method and place of conducting any proceeding for any remedy available to
the Trustee, or exercising any trust or power conferred upon the Trustee, under
this Agreement;

      (e) The Trustee shall not be charged with knowledge of any event referred
to in Section 7.01 unless a Responsible Officer of the Trustee at the Corporate
Trust Office obtains actual knowledge of such event or fact or the Trustee
receives written notice of such event or fact from the Master Servicer or the
Holders of 25% or more of the Certificates; and

      (f) The Trustee shall not be required to expend or risk its own funds or
otherwise incur financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if there is
reasonable ground for believing that the repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it. None
of the provisions contained in this Agreement shall in any event require the
Trustee to perform, or be responsible for the manner of performance of, any of
the obligations of CIT Consumer Finance, the Depositor or the Master Servicer
under this Agreement, except during such time, if any, as the Trustee shall be
the successor to, and be vested with the rights, duties, powers and privileges
of, the Master Servicer in accordance with the terms of this Agreement.

      SECTION 11.02. Certain Matters Affecting the Trustee.

      Except as otherwise provided in Section 11.01:

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

      (b) The Trustee may consult with counsel and any opinion of any counsel
shall be full and complete authorization and protection in respect of any action
taken or suffered or omitted by it hereunder in good faith and in accordance
with such opinion of counsel;

      (c) The Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Agreement, or to institute, conduct or defend any
litigation hereunder or in relation hereto, at the request, order or direction
of any of the Certificateholders, pursuant to the provisions of this Agreement,
unless such Certificateholders shall have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities which may be
incurred therein or thereby; provided, however, that nothing contained herein
shall relieve the Trustee of the obligations, upon the occurrence of an Event of
Termination (which has not been cured), to exercise such of the rights and
powers vested in it by this Agreement, and to use the

                                      -96-
<PAGE>

same degree of care and skill in their exercise as a prudent man would exercise
or use under the circumstances in the conduct of his own affairs;

      (d) Prior to the occurrence of an Event of Termination and after the
curing of all Events of Termination which may have occurred, the Trustee shall
not be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond or other paper or document, unless
requested in writing so to do by Holders of 25% or more of the Certificates;
provided, however, that if the payment within a reasonable time to the Trustee
of the costs, expenses or liabilities likely to be incurred by it in the making
of such investigation is, in the opinion of the Trustee, not reasonably assured
to the Trustee by the security afforded to it by the terms of this Agreement,
the Trustee may require reasonable indemnity against such cost, expense or
liability as a condition to so proceeding. The reasonable expense of every such
examination shall be paid by the Master Servicer or, if paid by the Trustee,
shall be reimbursed by the Master Servicer upon demand;

      (e) The Trustee may execute any of the trusts or powers hereunder or
perform by duties hereunder either directly or by or through agents, attorneys
or independent contractors and shall not be liable for any acts or omissions of
such agents, attorneys or independent contractors if appointed by it with due
care hereunder; and

      (f) The Trustee shall have no liability for any acts or omissions of CIT
Consumer Finance as REMIC Administrator and the appointment of CIT Consumer
Finance to act as REMIC Administrator shall be deemed to have been made with due
care on the part of the Trustee.

      SECTION 11.03. Trustee Not Liable for Certificates or Mortgage Loans.

      The Trustee assumes no responsibility for the correctness of the recitals
contained herein or in the Certificates (other than the Trustee's authentication
thereof). The Trustee makes no representations as to the validity or sufficiency
of this Agreement or of the Certificates (other than its authentication or
execution thereof) or of any Mortgage Loan, File or related document. The
Trustee shall not be accountable for the use or application by the Master
Servicer or the Depositor of funds paid to CIT Consumer Finance in consideration
of conveyance of the Mortgage Loans to the Depositor by CIT Consumer Finance or
deposited in or withdrawn from the Certificate Account by the Master Servicer.

      SECTION 11.04. Rights of Certificateholders to Direct Trustee and to Waive
Events of Termination.

      Holders of the Offered Certificates evidencing Percentage Interests
aggregating 25% or more shall have the right to direct the time, method, and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee; provided, however, that,
subject to Section 11.01, the Trustee shall have the right to decline to follow
any such direction if the Trustee being advised by counsel determines that the
action so directed may not lawfully be taken, or if the Trustee in good faith
shall, by a Responsible Officer or Officers of the Trustee, determine that the
proceedings so directed would

                                      -97-
<PAGE>

be illegal or involve it in personal liability or be unduly prejudicial to the
rights of Certificateholders not parties to such direction. Notwithstanding the
above in this Section 11.04, the Trustee shall not be required to act unless and
until it has been provided with an indemnity or security reasonably satisfactory
to it; provided further that nothing in this Agreement shall impair the right of
the Trustee to take any action deemed proper by the Trustee and which is not
inconsistent with such direction by the Certificateholders; and provided further
that the Trustee shall instead follow the directions of the Holders of the
Offered Certificates and Private Certificates evidencing Percentage Interests
(other than the Class X-IO and Class R Certificates) aggregating 51% or more
whenever it receives conflicting directions from the Certificateholders. Holders
of the Offered Certificates and Private Certificates evidencing Percentage
Interests (other than the Class X-IO and Class R Certificates) aggregating 51%
or more may on behalf of Certificateholders waive any past Event of Termination
hereunder and its consequences, except a default in respect of a covenant or
provision hereof which under Section 12.07 cannot be modified or amended without
the consent of all Certificateholders, and upon any such waiver, such Event of
Termination shall cease to exist and shall be deemed to have been cured for
every purpose of this Agreement; but no such waiver shall extend to any
subsequent or other Event of Termination or impair any right consequent thereon.

      SECTION 11.05. Master Servicer to Pay Trustee's Fees and Expenses.

      The Master Servicer agrees:

            (a) that the Master Servicer shall pay to the Trustee such
      compensation for all services rendered by it hereunder as agreed by the
      Trustee and the Master Servicer (which compensation is set forth in a
      prior agreement between the Master Servicer and the Trustee which shall
      not be limited by any provision of law in regard to the compensation of a
      trustee of an express trust);

            (b) except as otherwise expressly provided herein, that the Master
      Servicer shall reimburse the Trustee, to the extent requested by the
      Trustee, for all reasonable expenses, disbursements and advances incurred
      or made by the Trustee in accordance with any provisions of this Agreement
      (including the reasonable compensation and the expenses and disbursements
      of it agents and counsel), except any such expense, disbursement or
      advance as may be attributable to its negligence or bad faith; and

            (c) to indemnify the Trustee for, and to hold it harmless against,
      any loss, liability or expense incurred without negligence or bad faith on
      its part, arising out of or in connection with the acceptance or
      administration of the Trust and its duties hereunder, including the costs
      and expenses of defending itself against any claim or liability in
      connection with the exercise or performance of any of its powers or duties
      hereunder including the costs and expenses of defending itself against any
      claim or liability in connection with the exercise or performance of any
      of the Trustee's powers or duties hereunder.

      The covenants in this Section 11.05 shall be for the benefit of the
Trustee in each of its capacities and roles hereunder, including Trustee, Paying
Agent, Custodian, Certificate

                                      -98-
<PAGE>

Registrar and, if it is so acting, REMIC Administrator hereunder, and shall
survive the termination of this Agreement.

      SECTION 11.06. Eligibility Requirements for Trustee.

      The Trustee hereunder shall at all times be a corporation or a national
banking association having its principal office in a state and city acceptable
to the Depositor and organized and doing business under the laws of the United
States of America or any State, authorized under such laws to exercise corporate
trust powers, and shall have a combined capital and surplus of at least
$50,000,000 or shall be a member of a bank holding system the aggregate combined
capital and surplus of which is $50,000,000 and the Trustee shall be subject to
supervision and examination by a federal or state authority having jurisdiction
over depositary institutions. If such corporation publishes reports of condition
at least annually, pursuant to law or to the requirements of a supervising or
examining authority, then for the purposes of this Section 11.06, the combined
capital and surplus of such Person shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published. In
addition, the Trustee shall at all times have a long-term deposit rating of at
least Baa3 and BBB, by Moody's and Standard & Poor's, respectively, or a
short-term debt rating of at least P-3 and A-3 by Moody's and Standard & Poor's,
respectively, or as such Rating Agency shall otherwise deem acceptable. In case
at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 11.06, the Trustee shall resign immediately in the
manner and with the effect specified in Section 11.07.

      SECTION 11.07. Resignation or Removal of Trustee.

      The Trustee may at any time resign and be discharged from the trusts
hereby created by giving written notice thereof to the Master Servicer, the
Depositor and the Rating Agencies. Upon receiving such notice of resignation,
the Depositor shall promptly appoint a successor Trustee by written instrument,
in duplicate, one copy of which instrument shall be delivered to each of the
Master Servicer and the Depositor and one copy to the successor Trustee. If no
successor Trustee shall have been so appointed and shall have accepted
appointment within thirty (30) days after the giving of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

      If, at any time, the Trustee shall cease to be eligible in accordance with
the provisions of Section 11.06 and shall fail to resign after written request
therefor by the Depositor, or if at any time the Trustee shall be legally unable
to act, or shall be adjudged a bankrupt or insolvent, or a receiver of the
Trustee or of its property shall be appointed, or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose
of rehabilitation, conservation or liquidation, then the Depositor may remove
the Trustee. If the Depositor shall have removed the Trustee under the authority
of the immediately preceding sentence, the Depositor shall promptly appoint a
successor Trustee by written instrument, in duplicate, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the
successor Trustee. Upon appointment of any successor Trustee, the Trustee being
replaced shall change the name of the Certificate Account to the name of such
successor Trustee.

                                      -99-
<PAGE>

      Any resignation or removal of the Trustee and appointment of a successor
Trustee pursuant to any of the provisions of this Section 11.07 shall not become
effective until acceptance of appointment by the successor Trustee as provided
in Section 11.08.

      SECTION 11.08. Successor Trustee.

      Any successor Trustee appointed as provided in Section 11.07 shall
execute, acknowledge and deliver to the Master Servicer, the Depositor and to
its predecessor Trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the predecessor Trustee shall become
effective and such successor Trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally
named as Trustee. The Master Servicer, the Depositor and the predecessor Trustee
shall execute and deliver such instruments and do such other things as may
reasonably be required for fully and certainly vesting and confirming in the
successor Trustee all such rights, powers, duties and obligations.

      No successor Trustee shall accept appointment as provided in this Section
11.08 unless at the time of such acceptance such successor Trustee shall be
eligible under the provisions of Section 11.06.

      Upon acceptance of appointment by a successor Trustee as provided in this
Section 11.08, the Master Servicer shall cause notice of the succession of such
Trustee hereunder to be mailed to each Certificateholder at their addresses as
shown in the Certificate Register. If the Master Servicer fails to mail such
notice within ten days after acceptance of appointment by the successor Trustee,
the successor Trustee shall cause such notice to be mailed at the expense of the
Master Servicer.

      SECTION 11.09. Merger or Consolidation of Trustee.

      Any Person into which the Trustee may be merged or converted or with which
it may be consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any Person succeeding to
the corporate trustee business of the Trustee, shall be the successor of the
Trustee hereunder, provided such Person shall be eligible under the provisions
of Section 11.06, without the execution or filing of any paper or any further
act on the part of any of the parties hereto, anything herein to the contrary
notwithstanding.

      SECTION 11.10. [Reserved]

      SECTION 11.11. Separate Trustees and Co-Trustees.

      The Master Servicer and the Trustee, where applicable, shall have the
power from time to time to appoint one or more persons or corporations to act
either as co-trustees jointly with the Trustee, or as separate trustees, or as
custodians, for the purpose of conforming to any legal requirement, restriction
or condition (i) with respect to the holding of the Mortgage Loans or the Files
or (ii) with respect to the enforcement of a Mortgage Loan in any state in which
a Mortgaged Property is located or in any state in which any portion of the
Trust is located. The

                                     -100-
<PAGE>

separate trustees, co-trustees, or custodians so appointed shall be trustees or
custodians for the benefit of all Certificateholders and shall, subject to the
provisions of the following paragraph, have such power, rights and remedies as
shall be specified in the instrument of appointment; provided, however, that no
such appointment shall, or shall be deemed to, constitute the appointee an agent
of the Trustee.

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

            (a) all powers, duties, obligations and rights conferred upon the
      Trustee in respect of the receipt, custody and payment of moneys shall be
      exercised solely by the Trustee;

            (b) all other rights, powers, duties and obligations conferred or
      imposed upon the Trustee, to the extent also imposed upon such separate
      trustees, co-trustees or custodians, shall be conferred or imposed upon
      and exercised or performed by the Trustee and such separate trustee,
      co-trustee, or custodian jointly, except to the extent that under any law
      of any jurisdiction in which any particular act or acts are to be
      performed, the Trustee shall be incompetent or unqualified to perform such
      act or acts, in which event such rights, powers, duties and obligations
      (including holding of the Trust or any portion thereof in any such
      jurisdiction) shall be exercised and performed by such separate trustee,
      co-trustee, or custodian;

            (c) no separate trustee, co-trustee or custodian hereunder shall be
      personally liable by reason of any act or omission of any other separate
      trustee, co-trustee or custodian hereunder; and

            (d) the Master Servicer may at any time accept the resignation of or
      remove any separate trustee, co-trustee or custodian, so appointed by it.

      If any separate trustee, co-trustee or custodian shall die, become
incapable of acting, resign or be removed, all of its estates, properties,
rights, remedies and trusts shall vest in and be exercised by the Trustee, to
the extent permitted by law, without the appointment of a new or successor
trustee or custodian. The reasonable fees and expenses of any such separate
trustee, co-trustee or custodian shall be treated as additional fees and
expenses of the Trustee subject to Section 11.05 and payable by the Master
Servicer if and only to the extent the Master Servicer shall have consented in
writing to his or its appointment, which consent shall not be unnecessarily
withheld.

      SECTION 11.12. Trustee May Own Certificates.

      The Trustee in its individual or other capacity may become the owner or
pledgee of Certificates representing less than all the beneficial interest in
the Trust with the same rights as it would have if it were not Trustee.

                                     -101-
<PAGE>

      SECTION 11.13. Agents of Trustee.

      To the extent not prohibited by law and not inconsistent with the terms of
this Agreement (including, without limitation, Section 11.11), the Trustee may,
with the prior consent of the Master Servicer, appoint one or more agents to
carry out ministerial matters on behalf of the Trustee under this Agreement.

                                   ARTICLE XII

                                  MISCELLANEOUS

      SECTION 12.01. Master Servicer Not To Resign.

      The Master Servicer shall not resign from the obligations and duties
hereby imposed on it except upon determination that the performance of its
duties hereunder is no longer permissible under this Agreement or applicable
law. Any such determination permitting the resignation of the Master Servicer
shall be evidenced by an Opinion of Counsel for the Master Servicer to such
effect delivered to the Trustee. No such resignation shall become effective
until the Trustee or a successor Master Servicer shall have assumed the
responsibilities and obligations of the Master Servicer in accordance with
Section 7.03.

      SECTION 12.02. Maintenance of Office or Agency.

      The Trustee will maintain, at its own expense, an office in New York City.
Such offices are currently located at 101 Barclay Street, Floor 8 West, New
York, New York 10286. The Trustee will give prompt written notice to
Certificateholders of any change in the location of the Certificate Register or
any such office or agency.

      SECTION 12.03. Termination.

      (a) Subject to the other provisions of this Section, the respective
obligations and responsibilities of the Depositor, the Master Servicer and the
Trustee created hereby (other than the obligation of the Trustee to make certain
payments after the Final Distribution Date to Certificateholders and the
obligation of the Master Servicer to send certain notices as hereinafter set
forth) shall terminate upon the last action required to be taken by the Trustee
on the Distribution Date pursuant to this Section 12.03 following the earlier
of: (i) the purchase by the Master Servicer on any Distribution Date of all
Mortgage Loans and all property acquired in respect of any Mortgage Loan
remaining in the Trust pursuant to Section 8.03(b), (ii) the final payment or
other liquidation (or any advance with respect thereto) of the last Mortgage
Loan remaining in the Trust or the disposition of all property acquired upon
repossession of any Mortgaged Property and (iii) the Latest Possible Maturity
Date; provided, however, that in no event shall the trust created hereby
continue beyond the expiration of 21 years from the death of the last survivor
of the descendants of Joseph P. Kennedy, the late ambassador of the United
States to the Court of St. James, living on the date hereof.

      (b) Notice of any termination, specifying the Final Distribution Date
(which shall be a date that would otherwise be a Distribution Date) upon which
the Certificateholders

                                     -102-
<PAGE>

may surrender their Certificates to the Trustee for payment of the final
distribution and cancellation, shall be given promptly by the Master Servicer
(if the Depositor or the Master Servicer is exercising its right to purchase the
assets of the Trust) or by the Trustee (in any other case) by letter to
Certificateholders mailed out not earlier than the 15th day and not later than
the 25th day of the month (or, in the case of final payment of liquidation of
the last Mortgage Loan remaining in the Trust, as promptly as practicable after
receipt of such final payment or liquidation) next preceding the month of such
final distribution specifying (i) the Final Distribution Date upon which final
payment of the Certificates will be made upon presentation and surrender of the
Certificates at the office or agency of the Trustee therein designated, (ii) the
amount of any such final payment and (iii) that the Record Date otherwise
applicable to such Distribution Date is not applicable, payments being made only
upon presentation and surrender of the Certificates at the office or agency of
the Trustee herein specified. Such notice shall provide that, in addition to any
other office or agency of the Trustee designated therein, the presentation and
surrender of Certificates as aforesaid may occur at an office or agency of the
Trustee in New York City specified therein. If the Master Servicer is obligated
to give notice to Certificateholders as aforesaid, it shall give such notice to
the Trustee, the Certificate Registrar and to the Rating Agencies at the time
such notice is given to Certificateholders. In the event such notice is given by
the Master Servicer or the Master Servicer shall deposit in the Certificate
Account on or before the Final Distribution Date in immediately available funds
an amount equal to the purchase price for the assets of the Trust computed as
above provided.

      (c) Upon presentation and surrender of the Certificates, the Trustee shall
cause to be distributed any unpaid Certificate Principal Balance and unpaid
interest payable to the Certificateholders, in accordance with written
instructions from the Master Servicer, and in accordance with the priorities set
forth in Section 8.03(c).

      (d) In the event that all of the Certificateholders shall not surrender
their Certificates for final payment and cancellation on or before the Final
Distribution Date, the Trustee shall on such date cause all funds in the
Certificate Account not distributed in final distribution to Certificateholders
to be withdrawn therefrom and credited to the remaining Certificateholders by
depositing such funds in a separate escrow account for the benefit of such
Certificateholders, and the Master Servicer (if the Master Servicer exercised
its right to purchase the assets of the Trust) or the Trustee (in any other
case) shall give a second written notice to the remaining Certificateholders to
surrender their Certificates for cancellation and receive the final distribution
with respect thereto. If, within one year after the second notice, all the
Certificates shall not have been surrendered for cancellation, the Trustee may
take appropriate steps, or may appoint an agent to take appropriate steps, to
contact the remaining Certificateholders concerning surrender of their
Certificates, and the cost thereof shall be paid out of the funds on deposit in
such escrow account.

      (e) Upon any termination pursuant to this Section, the Trust shall be
terminated in accordance with the following additional requirements, unless the
Trustee has received an Opinion of Counsel to the effect that the failure of the
Trust to comply with the requirements of this Section will not (i) result in the
imposition of taxes on "prohibited transactions" of the Trust as described in
Section 860F of the Code, or (ii) cause any of the

                                     -103-
<PAGE>

REMICs to fail to qualify as a REMIC at any time that any Offered Certificates
or Private Certificates are outstanding:

            (i) Within ninety (90) days prior to the Final Distribution Date set
      forth in the notice given by the Master Servicer or the Trustee under this
      Section, the Master Servicer shall prepare and the Trustee shall execute a
      plan of complete liquidation of the Trust; and

            (ii) At or after the time of adoption of such a plan of complete
      liquidation and at or prior to the Final Distribution Date, the Master
      Servicer as agent of the Trustee shall sell all of the assets of the Trust
      to the Depositor or the Master Servicer as the case may be, for cash.

      SECTION 12.04. Acts of Certificateholders.

      (a) Except as otherwise specifically provided herein, whenever
Certificateholder approval, authorization, direction, notice, consent, waiver,
or other action is required hereunder, such approval, authorization, direction,
notice, consent, waiver or other action shall be deemed to have been given or
taken on behalf of, and shall be binding upon, all Certificateholders if agreed
to by Holders of Certificates (other than the Class X-IO and Class R
Certificates) of the specified Class or Classes evidencing, as to each such
Class, Percentage Interests aggregating 51% or more.

      (b) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Agreement to be given or taken by
Certificateholders may be embodied in and evidenced by one or more instruments
of substantially similar tenor signed by such Certificateholders in person or by
agent duly appointed in writing; and except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
are delivered to the Trustee and, where required, to the Master Servicer. Proof
of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Agreement and (subject to Section
11.01) conclusive in favor of the Trustee, the Master Servicer and the Depositor
if made in the manner provided in this Section.

      (c) The fact and date of the execution by any Certificateholder of any
such instrument or writing may be proved in any reasonable manner which the
Trustee deems sufficient.

      (d) The ownership of Certificates shall be proved by the Certificate
Register.

      (e) Any request, demand, authorization, direction, notice, consent, waiver
or other act by a Certificateholder shall bind every Holder of every Certificate
issued upon the registration of transfer thereof or in exchange therefor or in
lieu thereof, in respect of anything done, or omitted to be done by the Trustee,
the Master Servicer or the Depositor in reliance thereon, whether or not
notation of such action is made upon such security.

      (f) The Trustee may require such additional proof of any matter referred
to in this Section as it shall deem necessary.

                                     -104-
<PAGE>

      SECTION 12.05. Calculations.

      Except as otherwise provided in this Agreement, all interest rate and
basis point calculations under this Agreement will be made on the basis of a
360-day year consisting of twelve thirty-day months and will be carried out to
at least three decimal places.

      SECTION 12.06. Assignment or Delegation by the Master Servicer; Merger or
Consolidation of the Depositor, CIT Consumer Finance or the Master Servicer.

      Except as specifically authorized hereunder, and except for its
obligations as Master Servicer, in respect of which a transfer thereof is dealt
with under Article VII, the Master Servicer may not assign or delegate any of
its rights or obligations hereunder, except its right to receive any fees
pursuant to this Agreement, absent the prior written consent of Holders of
Certificates (other than the Class X-IO and Class R Certificates) of each Class
evidencing, as to each such Class, Percentage Interests aggregating 66-2/3% or
more, and any attempt to do so without such consent shall be void.
Notwithstanding the foregoing, CIT Consumer Finance may not delegate its
obligation to repurchase Mortgage Loans under Section 3.05 or 4.03.

      Notwithstanding the foregoing, any person into which the Depositor, CIT
Consumer Finance or the Master Servicer may be merged or consolidated, or any
corporation resulting from any merger or consolidation to which the Depositor,
CIT Consumer Finance or the Master Servicer shall be a party, or any Person
succeeding to the business of the Depositor, CIT Consumer Finance or the Master
Servicer, shall be the successor of the Depositor, CIT Consumer Finance or the
Master Servicer hereunder, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding; provided, however, that the successor or surviving
Person to the Master Servicer shall satisfy the criteria set forth in the
definition of an Eligible Master Servicer. Each of CIT Consumer Finance, the
Depositor and the Master Servicer shall promptly notify the Rating Agencies of
any such merger to which it is a party.

      Neither the Depositor nor the Master Servicer, nor any of the directors,
officers, employees or agents of the Depositor or the Master Servicer, shall be
under any liability to the Trustee or the Certificateholders for any action
taken or for refraining from the taking of any action in good faith pursuant to
this Agreement, or for errors in judgment; provided, however, that this
provision shall not protect the Depositor, the Master Servicer or any such
person against any breach of warranties or representations made herein, or
failure to perform its or his obligations in compliance with any standard of
care set forth in this Agreement, or any liability which otherwise would be
imposed by reason of any breach of the terms and conditions of this Agreement.
The Depositor, the Master Servicer and any director, officer, employee or agent
of the Depositor may rely in good faith on any document of any kind prima facie
properly executed and submitted by any Person respecting any matters arising
hereunder. Neither the Depositor nor the Master Servicer shall be under any
obligation to appear in, prosecute or defend any legal action, which arises
under this Agreement and which in its opinion may involve it in any expenses or
liability; provided, however, that the Depositor or the Master Servicer may in
its discretion undertake any such action which it may deem necessary or
desirable to in respect of this Agreement and the rights and duties of the
parties hereto and the interests of the Certificateholders thereunder and the
interests of the Certificateholders thereunder. In such

                                     -105-
<PAGE>

event, the legal expenses and costs of such action and any liability resulting
therefrom shall be expenses, costs and liabilities payable from the Certificate
Account and the Depositor and the Master Servicer shall be entitled to be
reimbursed therefor out of the Certificate Account.

      SECTION 12.07. Amendment.

      (a) This Agreement may be amended from time to time by agreement of the
Trustee and the Master Servicer at any time, without the consent of any of the
Certificateholders, (i) to cure any ambiguity, (ii) to correct or supplement any
provisions herein which may be inconsistent with any other provisions herein,
(iii) to add to the duties of either of the Sellers, Trustee or the Master
Servicer, (iv) to make such changes as are necessary to maintain the status of
any of the REMICs created under this Agreement as a REMIC; provided that the
Trustee has received an Opinion of Counsel to the effect that such action is
necessary or helpful to maintain such qualification, (v) to add or amend any
provisions as required by Moody's, Standard & Poor's or any other NRSRO in order
to maintain or improve any rating of the Certificates (it being understood that,
after the rating required by Section 2.02 hereof has been obtained, neither the
Trustee, the Depositor nor CIT Consumer Finance is obligated to maintain or
improve such rating), or (vi) to add any other provisions or make any other
revisions not inconsistent with any other provision herein upon receipt of an
Opinion of Counsel to the Master Servicer addressed to the Trustee that such
amendment will not adversely affect in any material respect the interests of any
Certificateholder (including, without limitation, the maintenance of the status
of any of the REMICs under the Code and under relevant state and local law).

      (b) This Agreement may also be amended from time to time by the Master
Servicer and the Trustee, with the consent of Holders of Certificates (other
than the Class X-IO and Class R Certificates) of each Class affected thereby
evidencing, as to each such Class, Percentage Interests aggregating 51% or more,
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement or of modifying in any
manner the rights of the Certificateholders; provided, however, that no such
amendment shall (i) reduce in any manner the amount of, or delay the timing of,
payments on any Certificate without the consent of the Holder of each
Certificate affected thereby, (ii) reduce the aforesaid percentage required to
consent to any such amendment, without the consent of the Holders of all
Certificates then outstanding, (iii) result in the disqualification of any of
the REMICs created under this Agreement as a REMIC under the Code, (iv)
adversely affect the status of any of the REMICs created under this Agreement as
a REMIC or the status of the Certificates as "regular interests" therein, (v)
cause any tax (other than any tax imposed on "net income from foreclosure
property" under Section 860G(c)(1) of the Code that would be imposed without
regard to such amendment) to be imposed on the Trust, including, without
limitation, any tax imposed on "prohibited transactions" under Section
860G(d)(1) of the Code or (vi) adversely affect in any material respect the
interest of the Class R Certificateholders without the unanimous consent of the
Class R Certificateholders.

      (c) This Agreement may also be amended from time to time, without the
consent of any of the Certificateholders, by the Master Servicer and the Trustee
to modify, eliminate or add to the provisions of this Agreement to such extent
as shall be necessary or helpful to (i) maintain the qualification of any of the
REMICs created under this Agreement as a REMIC under the Code and under relevant
state and local law or avoid, or reduce the risk of, the

                                     -106-
<PAGE>

imposition of any tax on the Trust or any REMIC created under this Agreement
under the Code that would be a claim against the Trust assets, provided that (A)
there shall have been delivered an Opinion of Counsel addressed to the Trustee
to the effect that such action is necessary or helpful to maintain such
qualification or avoid any such tax or reduce the risk of its imposition and (B)
such amendment shall not have any of the effects described in the proviso to
Section 12.07(a), or (ii) prevent the Trust from entering into any "prohibited
transaction" as defined in Section 860F of the Code, provided that such
amendment under this clause (ii) shall not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any
Certificateholder (including, without limitation, the maintenance of any of the
REMICs created under this Agreement as a REMIC under the Code and under relevant
state and local law).

      (d) Promptly after the execution of any amendment or consent pursuant to
this Section, the Trustee shall furnish written notification of the substance of
such amendment to each Certificateholder (but only if such amendment is pursuant
to Section 12.07(b) and affects the Class of Certificates held by such
Certificateholder) and, in all cases, to the Rating Agencies (which shall be
furnished no later than 5 days after the execution and delivery thereof), which
notification will be prepared by the Master Servicer and delivered to the
Trustee.

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

      (f) The Trustee may, but shall not be obligated to, enter into any such
amendment which affects the Trustee's own rights, duties or immunities under
this Agreement or otherwise.

      (g) In connection with any amendment pursuant to this Section, the Trustee
shall be entitled to receive an Opinion of Counsel to the Master Servicer to the
effect that such amendment is authorized or permitted by the Agreement.

      (h) Upon the execution of any amendment or consent pursuant to this
Section, this Agreement shall be modified in accordance therewith, and such
amendment or consent shall form a part of this Agreement for all purposes, and
every Holder of Certificates theretofore or thereafter issued hereunder shall be
bound thereby.

      SECTION 12.08. Contribution of Assets.

      Following the Closing Date, the Trustee shall not accept any contribution
of additional assets (except for the Subsequent Mortgage Loans and Files
delivered on each Subsequent Transfer Date) to the Trust unless the Trustee has
received an Opinion of Counsel addressed to the Trustee to the effect that (i)
the contribution of such assets into the Trust will not cause any of the REMICs
to fail to qualify as a REMIC under the Code and under the relevant state and
local law and (ii) such contribution will not cause the imposition of a tax on
"prohibited transactions" (as defined in Section 860F of the Code or under
similar provisions under the relevant state and local law) or on contributions
to the Trust after the "start-up day" (as defined in

                                     -107-
<PAGE>

Section 860G of the Code or under similar provisions under the relevant state
and local law) with respect thereto.

      SECTION 12.09. Notices.

      All communications, instructions, directions and notices pursuant hereto
to the Depositor, the Master Servicer and the Trustee and the Rating Agencies
shall be in writing and delivered or mailed to it at the appropriate following
address:

                  If to the Depositor:

                  The CIT Group Securitization Corporation, III
                  One CIT Drive
                  Livingston, New Jersey  07039
                  Attention:  Treasurer
                    cc:  Senior Vice President - Securitization

                  If to the Master Servicer:

                  The CIT Group/Consumer Finance, Inc.
                  One CIT Drive
                  Livingston, New Jersey  07039
                  Attention:  President

                  With a copy to:

                  CIT Group Inc.
                  One CIT Drive
                  Livingston, NJ  07039
                  Attention:  Assistant General Counsel

                  If to the Trustee or the Paying Agent:

                  The Bank of New York
                  101 Barclay Street, Floor 8 West
                  New York, New York  10286
                  Attention:  Mortgage-Backed Securities

                  If to Moody's:

                  Moody's Investors Service, Inc.
                  99 Church Street
                  New York, New York  10007
                  Attention:  Home Equity Monitoring Group

                                     -108-
<PAGE>

                  If to Standard & Poor's:

                  Standard and Poor's Ratings Group
                  26 Broadway
                  New York, New York  10004
                  Attention:  Residential Mortgage Surveillance Group

                  If to the Representative:

                  Salomon Smith Barney, Inc.
                  390 Greenwich Street
                  New York, NY 10013

or at such other address as the party may designate by notice to the other
parties hereto, which notice shall be effective when received.

      All communications and notices pursuant hereto to a Certificateholder
shall be in writing and delivered or mailed at the address shown in the
Certificate Register.

      SECTION 12.10. Merger and Integration.

      Except as specifically stated otherwise herein, this Agreement sets forth
the entire understanding of the parties relating to the subject matter hereof,
and all prior understandings, written or oral, are superseded by this Agreement.
This Agreement may not be modified, amended, waived, or supplemented except as
provided herein.

      SECTION 12.11. Reliance on Credit.

      The parties hereto acknowledge that, with respect to receiving payments on
the Certificates, the Certificateholders are relying on the Mortgagors to make
payments on the Mortgage Loans and not on the creditworthiness of the Depositor,
the Trustee, CIT Consumer Finance, CIT or any of their respective affiliates.
The parties hereto further acknowledge that the transfer of any Mortgage Loans
by CIT Consumer Finance to the Depositor or by the Depositor to the Trust is
intended to be a true sale of such Mortgage Loans, and not a financing, such
that creditors of CIT Consumer Finance and the Depositor are intended to have no
further claim to the Mortgage Loans or any payments made thereon as a source of
repayment of any indebtedness of CIT Consumer Finance or the Depositor to such
creditors.

      SECTION 12.12. No Bankruptcy Petition.

      Each of CIT Consumer Finance, the Trustee and the Master Servicer agrees
that, prior to the date which is one year and one day after the payment in full
of the Offered Certificates and Private Certificates it will not institute
against, or join any other person in instituting against, the Depositor or the
Trust any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or other proceedings under any Federal or state bankruptcy or
similar law.

                                     -109-
<PAGE>

      SECTION 12.13. Headings.

      The headings herein are for purposes of reference only and shall not
otherwise affect the meaning or interpretation of any provision hereof.

      SECTION 12.14. Governing Law.

      This Agreement shall be governed by, and construed and enforced in
accordance with the laws of the State of New York, without regard to its
conflict-of-laws provisions.

      SECTION 12.15. Counterparts.

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

                                  ARTICLE XIII

                                  THE DEPOSITOR

      SECTION 13.01. Representations of the Depositor.

      The Depositor hereby makes the following representations as to itself on
which the Trustee on behalf of the Trust shall rely in accepting the Mortgage
Loans in trust and authenticating the Certificates. The representations are made
as of the execution and delivery of this Agreement, and shall survive the sale
of the Mortgage Loans to the Trust.

            (i) Organization and Good Standing. The Depositor is a corporation
      duly organized, validly existing and in good standing under the laws of
      the jurisdiction of its organization and has the corporate power to own
      its assets and to transact the business in which it is currently engaged.
      The Depositor is duly qualified to do business as a foreign corporation
      and is in good standing in each jurisdiction in which the character of the
      business transacted by it or properties owned or leased by it requires
      such qualification and in which the failure so to qualify would have a
      material adverse effect on the business, properties, assets, or condition
      (financial or other) of the Depositor or on the Certificates or the
      transactions contemplated by this Agreement.

            (ii) Authorization; Binding Obligations. The Depositor has the power
      and authority to make, execute, deliver and perform this Agreement and all
      of the transactions contemplated under this Agreement, and has taken all
      necessary corporate action to authorize the execution, delivery and
      performance of this Agreement. When executed and delivered, this Agreement
      will constitute the legal, valid and binding obligation of the Depositor
      enforceable in accordance with its terms, except as enforcement of such
      terms may be limited by bankruptcy, insolvency or similar laws affecting
      the enforcement of creditors' rights generally and by the availability of
      equitable remedies.

            (iii) No Consent Required. The Depositor is not required to obtain
      the consent of any other party or any consent, license, approval or
      authorization from, or

                                     -110-
<PAGE>

      registration or declaration with, any governmental authority, bureau or
      agency in connection with the execution, delivery, performance, validity
      or enforceability of this Agreement the failure of which so to obtain
      would have a material adverse effect on the business, properties, assets
      or condition (financial or otherwise) of the Depositor or on the
      Certificates or the transactions contemplated by this Agreement.

            (iv) No Violations. The execution, delivery and performance of this
      Agreement by the Depositor will not violate any provision of any existing
      law or regulation or any order or decree of any court or the Articles of
      Incorporation or Bylaws of the Depositor, or constitute a material breach
      of any mortgage, indenture, contract or other agreement to which the
      Depositor is a party or by which the Depositor may be bound.

            (v) Litigation. No litigation or administrative proceeding of or
      before any court, tribunal or governmental body is currently pending, or
      to the knowledge of the Depositor threatened, against the Depositor or any
      of its properties or with respect to this Agreement or the Certificates
      which, if adversely determined, would in the opinion of the Depositor have
      a material adverse effect on the transactions contemplated by this
      Agreement.

      SECTION 13.02. Merger or Consolidation of the Depositor.

      Any Person into which the Depositor may be merged or consolidated, or any
corporation resulting from any merger or consolidation to which the Depositor
shall be a party, or any Person succeeding to the business of the Depositor,
shall be the successor of the Depositor hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding.

      SECTION 13.03. Limitation on Liability of the Depositor and Others.

      (a) Neither the Depositor nor any of the directors, officers, employees or
agents of the Depositor shall be under any liability to the Trustee or the
Certificateholders for any action taken or for refraining from the taking of any
action in good faith pursuant to this Agreement, or for errors in judgment;
notwithstanding anything herein to the contrary, no party to this Agreement
shall have any recourse against the Depositor for any actions taken, or failed
to be taken, by the Depositor.

      (b) The Depositor and any director, officer, employee or agent of the
Depositor may rely in good faith on any document of any kind prima facie
properly executed and submitted by any Person respecting any matters arising
hereunder.

      (c) The Depositor shall not be under any obligation to appear in,
prosecute or defend any legal action which arises under this Agreement.

                                     -111-
<PAGE>

      SECTION 13.04. The Depositor May Own Securities.

      The Depositor and any Person controlling, controlled by, or under common
control with the Depositor may in its individual or any other capacity become
the owner or pledgee of Certificates with the same rights as it would have if it
were not the Depositor or an Affiliate thereof, except as otherwise provided in
the definition of "Certificateholder." Certificates so owned by or pledged to
the Depositor or such controlling or commonly controlled Person shall have an
equal and proportionate benefit under the provisions of this Agreement, without
preference, priority or distinction as among all of the Certificates.

                                     -112-
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized as of March 25,
2003.

                                   THE CIT GROUP/CONSUMER FINANCE, INC.

                                   By: /s/ Barbara Callahan
                                       -----------------------------------------
                                       Name:   Barbara Callahan
                                       Title:  Vice President

                                   CFHE FUNDING COMPANY LLC

                                   By: /s/ Barbara Callahan
                                       -----------------------------------------
                                       Name:   Barbara Callahan
                                       Title:  Vice President

                                   THE CIT GROUP SECURITIZATION CORPORATION, III

                                   By: /s/ Barbara Callahan
                                       -----------------------------------------
                                       Name:   Barbara Callahan
                                       Title:  Vice President

                                   THE BANK OF NEW YORK, not in its individual
                                          capacity but solely as Trustee

                                   By: /s/ Patricia O'Neill-Manella
                                       -----------------------------------------
                                       Name:   Patricia O'Neill-Manella
                                       Title:  Assistant Vice President

                                     -113-<PAGE>

                                                                    EXHIBIT 4.10

                            DOLE FOOD COMPANY, INC.,

                                   as Issuer,

                                      and

                     WELLS FARGO BANK, NATIONAL ASSOCIATION,

                                   as Trustee
                                 ---------------

                          SECOND SUPPLEMENTAL INDENTURE

                           Dated as of March 28, 2003

           Supplementing the Trust Indenture Dated as of July 15, 1993

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

                       Providing, among other things, for

 the succession of Wells Fargo Bank, National Association to J.P. Morgan Trust
                  Company as Trustee under such Trust Indenture

                                       and

        Amendment to the terms of 7-7/8% Debentures due July 15, 2013 and
                          7-1/4% Senior Notes due 2009
         ---------------------------------------------------------------

<PAGE>

         THIS SECOND SUPPLEMENTAL INDENTURE, dated as of March 28, 2003, between
DOLE FOOD COMPANY, INC., a corporation duly incorporated and existing under the
laws of the State of Delaware (the "Company"), having its principal office at
One Dole Drive, Westlake Village, California 91362, and WELLS FARGO BANK,
NATIONAL ASSOCIATION, a national banking association, having an office at 707
Wilshire Boulevard, 17th Floor, Los Angeles, California 90017, who is hereby
appointed successor Trustee to J.P. Morgan Trust Company, National Association
(formerly known as the Chase Manhattan Bank and Trust Company, National
Association, and formerly known as Chemical Trust Company of California, the
"Retiring Trustee") (said Wells Fargo Bank, National Association being
hereinafter sometimes called the "New Trustee"), as Trustee under the Indenture,
dated as of July 15, 1993 (the "Original Indenture"), which Original Indenture
was executed and delivered by the Company to Chemical Trust Company of
California, as Trustee, to secure the payment of senior debt securities issued
or to be issued under and in accordance with the provisions of the Original
Indenture, reference to which Original Indenture is hereby made, this instrument
(hereinafter called the " Second Supplemental Indenture") being supplemental
thereto;

         Capitalized terms used herein and not otherwise defined herein shall
have the meanings ascribed thereto in the Original Indenture;

                                    RECITALS

         WHEREAS, the Company has heretofore executed and delivered to the
Retiring Trustee the Original Indenture (together with the Officers' Certificate
under Sections 102, 201, 301 and 303 of the Original Indenture, dated as of
October 6, 1998 (the "1998 Officers' Certificate"), the Officers' Certificate
under Section 201, 301 and 303 of the Original Indenture dated as of August 3,
1993 (the "1993 Officers' Certificate"), the First Supplemental Indenture, dated
as of April 30, 2002 (the "First Supplemental Indenture") and this Second
Supplemental Indenture, the "Indenture"), providing for the issuance by the
Company from time to time of its unsecured debt securities to be issued in one
or more series (in the Original Indenture and herein called the "Securities");

         WHEREAS, pursuant to the 1993 Officers' Certificate, the Company issued
$225,000,000 aggregate principal amount of its 6-3/4% Notes due July 15, 2000
(the "2000 Notes") and $175,000,000 aggregate principal amount of its 7-7/8%
Debentures due 2013 (the "2013 Notes");

         WHEREAS, pursuant to the 1998 Officers' Certificate, the Company issued
$300,000,000 aggregate principal amount of its 6-3/8% Notes due 2005 (the "2005
Notes");

         WHEREAS, pursuant to the First Supplemental Indenture, the Company
issued $400,000,000 aggregate principal amount of its 7-1/4% Senior Notes due
2009 (the "2009 Notes");

         WHEREAS, as of the date of this Second Supplemental Indenture, there
are no outstanding 2000 Notes, $300,000,000 aggregate principal amount of 2005
Notes outstanding, $400,000,000 aggregate principal amount of 2009 Notes
outstanding and $155,000,000 aggregate principal amount of 2013 Notes
outstanding;

                                       2

<PAGE>

         WHEREAS, as permitted by Section 610 of the Original Indenture, the
Company desires to remove the Retiring Trustee as Trustee under the Original
Indenture and to appoint the New Trustee as successor Trustee under the Original
Indenture, subject to the conditions of Article Six of the Original Indenture,
effective as of the opening of business on March 28, 2003, and said New Trustee
desires to accept such appointment, effective as of the opening of business on
March 28, 2003, in each case, pursuant to this Second Supplemental Indenture;

         WHEREAS, pursuant to that certain Agreement of Removal, Appointment and
Acceptance, dated as of March 28, 2003 (the "Removal Agreement"), the Company
and the Retiring Trustee agreed to the removal of the Retiring Trustee as
Trustee under the Original Indenture and the Company and the New Trustee agreed
to the appointment of the New Trustee as Trustee under the Original Indenture;

         WHEREAS, pursuant to that certain Indenture, dated as of March 28, 2003
(the "New Senior Notes Indenture"), the Company is issuing $475,000,000
aggregate principal amount of its 8-7/8% Senior Notes due 2011 (the "New Senior
Notes");

         WHEREAS, in connection with certain other transactions occurring on the
date of this Second Supplemental Indenture, the Company has agreed to amend the
terms of the Original Indenture governing the terms of the 2009 Notes and the
2013 Notes (collectively, the "Existing Notes") to add to the covenants of the
Company under the Original Indenture, to increase the interest rates payable on
such Existing Notes, to cause certain of its subsidiaries to guarantee the
Existing Notes on a senior subordinated basis and to add additional Events of
Default (as defined in the Original Indenture);

         WHEREAS, Section 301 of the Original Indenture provides for various
matters with respect to any series of Securities issued under the Original
Indenture to be established in an indenture supplemental to the Original
Indenture;

         WHEREAS, Section 901 of the Original Indenture provides for the Company
and the Trustee to evidence and provide for the acceptance of appointment
thereunder by a successor Trustee with respect to the Securities of one or more
series issued under the Original Indenture;

         WHEREAS, Section 901 of the Original Indenture provides that certain
changes may be made to the Original Indenture with respect to any series of
Securities issued under the Original Indenture without the consent of the
holders of such Securities, including the addition of additional covenants of
the Company and the increase of interest rates payable on such Securities for
the benefit of the holders of any or all series of Securities issued under the
Original Indenture;

         WHEREAS, Section 901 of the Original Indenture provides that certain
changes may be made to the Original Indenture with respect to any series of
Securities issued under the Original Indenture without the consent of the
holders of such Securities, including the addition of additional Events of
Default (as defined in the Original Indenture);

         WHEREAS, as permitted by Section 901 of the Original Indenture, the
Company, in the exercise of the power and authority conferred upon and reserved
to it under the provisions of the Original Indenture, has duly determined to
make, execute and deliver to the New Trustee this

                                       3

<PAGE>

Second Supplemental Indenture to the Original Indenture in order to add to the
covenants of the Company for the benefit of the holders of the 2009 Notes and
the 2013 Debentures;

         WHEREAS, as permitted by Section 901 of the Original Indenture, the
Company, in the exercise of the power and authority conferred upon and reserved
to it under the provisions of the Original Indenture, has duly determined to
make, execute and deliver to the Trustee this Second Supplemental Indenture to
the Original Indenture in order to increase the interest rate payable on and
after the date hereof with respect to the 2009 Notes from 7-1/4% per annum to
8.625% per annum and to increase the interest rate payable on and after the date
hereof with respect to the 2013 Notes from 7-7/8% per annum to 8.75% per annum;

         WHEREAS, as permitted by Section 901 of the Original Indenture, the
Company, in the exercise of the power and authority conferred upon and reserved
to it under the provisions of the Original Indenture, has duly determined to
make, execute and deliver to the Trustee this Second Supplemental Indenture to
the Original Indenture in order to provide for the guarantee of the 2009 Notes
and the 2013 Debentures by certain of its domestic subsidiaries; and

         WHEREAS, as permitted by Section 901 of the Original Indenture, the
Company, in the exercise of the power and authority conferred upon and reserved
to it under the provisions of the Original Indenture, has duly determined to
make, execute and deliver to the Trustee this Second Supplemental Indenture to
the Original Indenture in order to add additional Events of Default for the
Existing Notes; and

         WHEREAS, the execution and delivery by the Company of this Second
Supplemental Indenture have been duly authorized by the Board of Directors of
the Company by appropriate Board Resolutions.

                   NOW, THEREFORE, THIS INDENTURE WITNESSETH:

         That the Company, pursuant to the Removal Agreement and pursuant to
Section 610 of the Original Indenture, and by order of its Board of Directors,
hereby removes the Retiring Trustee as Trustee under the Original Indenture (and
will furnish to said Retiring Trustee a manually signed original of this Second
Supplemental Indenture as an instrument of such removal) effective as of the
opening of business on March 28, 2003;

         That, pursuant to Section 610 of the Original Indenture, and by order
of its Board of Directors, the Company hereby appoints the New Trustee as
successor Trustee under the Original Indenture, subject to the conditions of
Article Six thereof, effective as of the opening of business on March 28, 2003;

         That the undersigned New Trustee hereby accepts its appointment by the
Company as successor Trustee under the Original Indenture (and, pursuant to
Section 611 of the Original Indenture, will furnish to said Retiring Trustee and
the Company a manually signed original of this Second Supplemental Indenture as
an instrument of such acceptance) effective as of the opening of business on
March 28, 2003;

         That the Company will proceed with the delivery of the notice of the
aforesaid removal and the notice of the aforesaid appointment, as required, by
Section 610 and in the manner

                                       4

<PAGE>

prescribed by Section 106 of the Original Indenture, in substantially the form
provided in Exhibit A attached hereto.

         The Company further covenants and agrees to and with the New Trustee
and its successors in said trust under the Original Indenture, as follows:

                                  ARTICLE ONE
             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

         Section 101       Definitions. Each capitalized term that is used
herein and is defined in the Indenture shall have the meaning specified in the
Indenture unless such term is otherwise defined herein. The definitions below
shall only apply for the purposes of the new provisions added to the Indenture.

                  "Acquired Indebtedness" means Indebtedness of a Person or any
                  of its Subsidiaries existing at the time such Person becomes a
                  Restricted Subsidiary of the Company or at the time it merges
                  or consolidates with or into the Company or any of its
                  Restricted Subsidiaries or assumed in connection with the
                  acquisition of assets from such Person and in each case not
                  incurred by such Person in connection with, or in anticipation
                  or contemplation of, such Person becoming a Restricted
                  Subsidiary of the Company or such acquisition, merger or
                  consolidation.

                  "Affiliate" means, with respect to any specified Person, any
                  other Person who directly or indirectly through one or more
                  intermediaries controls, or is controlled by, or is under
                  common control with, such specified Person. The term "control"
                  means the possession, directly or indirectly, of the power to
                  direct or cause the direction of the management and policies
                  of a Person, whether through the ownership of voting
                  securities, by contract or otherwise; and the terms
                  "controlling" and "controlled" have meanings correlative of
                  the foregoing.

                  "Asset Acquisition" means (1) an Investment by the Company or
                  any Restricted Subsidiary of the Company in any other Person
                  pursuant to which such Person shall become a Restricted
                  Subsidiary of the Company or any Restricted Subsidiary of the
                  Company, or shall be merged with or into the Company or any
                  Restricted Subsidiary of the Company, or (2) the acquisition
                  by the Company or any Restricted Subsidiary of the Company of
                  the assets of any Person (other than a Restricted Subsidiary
                  of the Company) which constitutes all or substantially all of
                  the assets of such Person or comprises any division or line of
                  business of such Person or any other properties or assets of
                  such Person other than in the ordinary course of business.

                                       5

<PAGE>

                  "Asset Sale" means any direct or indirect sale, issuance,
                  conveyance, transfer, lease (other than operating leases
                  entered into in the ordinary course of business), assignment
                  or other transfer for value by the Company or any of its
                  Restricted Subsidiaries (including any Sale and Leaseback
                  Transaction) to any Person other than the Company, a Guarantor
                  or a Wholly Owned Restricted Subsidiary of the Company of: (1)
                  any Capital Stock of any Restricted Subsidiary of the Company;
                  or (2) any other property or assets of the Company or any
                  Restricted Subsidiary of the Company other than in the
                  ordinary course of business; provided, however, that none of
                  the following shall be considered an Asset Sale: (a) a
                  transaction or series of related transactions for which the
                  Company or its Restricted Subsidiaries receive aggregate
                  consideration of less than $5.0 million; (b) the sale, lease,
                  conveyance, disposition or other transfer of all or
                  substantially all of the assets of the Company as permitted
                  under Article Eight; (c) the grant of Liens not prohibited by
                  this Indenture; (d) any Restricted Payment permitted by
                  Section 1012 or that constitutes a Permitted Investment; (e)
                  the sale or discount, in each case without recourse, of
                  accounts receivable arising in the ordinary course of
                  business, but only in connection with the compromise or
                  collection thereof; and (f) disposals or replacements of
                  obsolete, worn out, uneconomical or surplus property or
                  equipment.

                  "Asset Swap" means the execution of a definitive agreement,
                  subject only to customary closing conditions that the Company
                  in good faith believes will be satisfied, for a substantially
                  concurrent purchase and sale, or exchange, of assets (of a
                  kind used or usable by the Company and its Restricted
                  Subsidiaries in their business as it exists on the date
                  thereof, or in businesses that are the same as such business
                  of the Company and its Restricted Subsidiaries on the date
                  thereof or similar or reasonably related thereto) between the
                  Company or any of its Restricted Subsidiaries and another
                  Person or group of affiliated Persons; provided, however, that
                  any amendment to or waiver of any closing condition that
                  individually or in the aggregate is material to the Asset Swap
                  shall be deemed to be a new Asset Swap.

                  "Bankruptcy Law" means Title 11, U.S. Code or any similar
                  Federal or state law for the relief of debtors.

                  "Board of Directors" means, as to any Person, the board of
                  directors (or similar governing body) of such Person or any
                  duly authorized committee thereof.

                                       6

<PAGE>

                  "Board Resolution" means, with respect to any Person, a copy
                  of a resolution certified by the Secretary or an Assistant
                  Secretary of such Person to have been duly adopted by the
                  Board of Directors of such Person and to be in full force and
                  effect on the date of such certification, and delivered to the
                  Trustee.

                  "Business Day" means any day other than a Saturday, a Sunday
                  or a day on which banking institutions in the City of New York
                  or at a place of payment are authorized by law, regulation or
                  executive order to remain closed. If a payment date is not a
                  Business Day at a place of payment, payment may be made at
                  that place on the next succeeding day that is a Business Day,
                  and no interest shall accrue for the intervening period.

                  "Capital Call Agreement" means the Capital Call Agreement to
                  be dated on or about the Issue Date by and among David H.
                  Murdock, individually, and as trustee for the David H. Murdock
                  Living Trust, Holdings and Deutsche Bank AG New York Branch,
                  as administrative agent.

                  "Capital Stock" means:

                  (1)      with respect to any Person that is a corporation, any
                  and all shares, interests, participations or other equivalents
                  (however designated and whether or not voting) of corporate
                  stock, including each class of Common Stock and Preferred
                  Stock of such Person, and all options, warrants or other
                  rights to purchase or acquire any of the foregoing; and

                  (2)      with respect to any Person that is not a corporation,
                  any and all partnership, membership or other equity interests
                  of such Person, and all options, warrants or other rights to
                  purchase or acquire any of the foregoing.

                  "Capitalized Lease Obligation" means, as to any Person, the
                  obligations of such Person under a lease that are required to
                  be classified and accounted for as capital lease obligations
                  under GAAP and, for purposes of this definition, the amount of
                  such obligations at any date shall be the capitalized amount
                  of such obligations at such date, determined in accordance
                  with GAAP.

                  "Cash Equivalents" means:

                  (1)      U.S. dollars, pounds sterling, Euros or, in the case
                  of any Foreign Restricted Subsidiary, such local currencies
                  held by it from time to time in the ordinary course of
                  business;

                                       7

<PAGE>

                  (2)      securities issued by, or unconditionally guaranteed
                  by, the United States Government, the governments of Canada,
                  Japan, Sweden, Switzerland or the member states of the United
                  Kingdom or the European Union or issued by any agency thereof
                  and backed by the full faith and credit of the United States,
                  Canada, Japan, Sweden, Switzerland or the member states of the
                  United Kingdom or the European Union, in each case maturing
                  within one year from the date of acquisition thereof;

                  (3)      securities issued by any state of the United States
                  of America or any political subdivision of any such state or
                  any public instrumentality thereof maturing within one year
                  from the date of acquisition thereof and, at the time of
                  acquisition, having one of the two highest ratings obtainable
                  from either Standard & Poor's Ratings Group ("S&P") or Moody's
                  Investors Service, Inc. ("Moody's");

                  (4)      commercial paper maturing no more than one year from
                  the date of creation thereof and, at the time of acquisition,
                  having a rating of at least A-1 from S&P or at least P-1 from
                  Moody's;

                  (5)      certificates of deposit or bankers' acceptances
                  maturing within one year from the date of acquisition thereof
                  issued by any bank organized under the laws of the United
                  States of America or any state thereof or the District of
                  Columbia or any U.S. branch of a foreign bank having at the
                  date of acquisition thereof combined capital and surplus of
                  not less than $250.0 million or by a commercial bank organized
                  under the laws of a country recognized by the United States
                  which has a combined capital and surplus of not less than
                  $250.0 million (or the foreign currency equivalent thereof);
                  or money market funds sponsored by a registered broker dealer
                  or mutual fund distributor;

                  (6)      eurodollar time deposits;

                  (7)      repurchase obligations with a term of not more than
                  seven days for underlying securities of the types described in
                  clause (1) or (2) above entered into with any bank meeting the
                  qualifications specified in clause (5) above; and

                  (8)      investments in money market funds which invest
                  substantially all their assets in securities of the types
                  described in clauses (1) through (7) above;

                  provided that for purposes of the subordination provisions,
                  the term "Cash Equivalents" shall not include obligations of
                  the type referred to in clause (7).

                                       8

<PAGE>

                  "Change of Control" means the occurrence of one or more of the
                  following events:

                  (1)      any sale, lease, exchange or other transfer (in one
                  transaction or a series of related transactions) of all or
                  substantially all of the assets of the Company or Holdings to
                  any Person or group of related Persons for purposes of Section
                  13(d) of the Exchange Act (a "Group"), together with any
                  Affiliates thereof (whether or not otherwise in compliance
                  with the provisions of this Indenture), other than to the
                  Permitted Holders;

                  (2)      the approval by the holders of Capital Stock of the
                  Company or Holdings, as the case may be, of any plan or
                  proposal for the liquidation or dissolution of the Company or
                  Holdings, as the case may be (whether or not otherwise in
                  compliance with the provisions of this Indenture);

                  (3)      any Person or Group (other than the Permitted Holders
                  and any entity formed by the Permitted Holders for the purpose
                  of owning Capital Stock of the Company) shall become the
                  owner, directly or indirectly, beneficially or of record, of
                  shares representing more than 50% of the aggregate ordinary
                  voting power represented by the issued and outstanding Capital
                  Stock of the Company or Holdings; or

                  (4)      the replacement of a majority of the Board of
                  Directors of the Company or Holdings over a two-year period
                  from the directors who constituted the Board of Directors of
                  the Company or Holdings, as the case may be, at the beginning
                  of such period, and such replacement shall not have been
                  approved by a vote of either the holders of a majority of the
                  shares of Common Stock of Holdings (so long as the Permitted
                  Holders hold a majority of the Common Stock of Holdings) or at
                  least a majority of the Board of Directors of the Company or
                  Holdings, as the case may be, then still in office who either
                  were members of such Board of Directors at the beginning of
                  such period or whose election as a member of such Board of
                  Directors was previously so approved.

                  "Commodities Agreements" means commodity agreements, hedging
                  agreements and other similar agreements or arrangements
                  designed to protect the Company or any Restricted Subsidiary
                  of the Company against price fluctuations of commodities
                  (e.g., fuel) used in their respective businesses.

                  "Common Stock" of any Person means any and all shares,
                  interests or other participations in, and other equivalents
                  (however designated and whether voting or non-voting) of, such
                  Person's

                                       9

<PAGE>

                  common stock, whether outstanding on the Issue Date or issued
                  after the Issue Date, and includes, without limitation, all
                  series and classes of such common stock.

                  "Company" means Dole Food Company, Inc., a Delaware
                  corporation, until a successor Person shall have become such
                  pursuant to the applicable provisions of this Indenture, and
                  thereafter means such successor Person.

                  "Consolidated EBITDA" means, with respect to any Person, for
                  any period, the sum (without duplication) of:

                  (1)      Consolidated Net Income; and

                  (2)      to the extent Consolidated Net Income has been
                  reduced thereby:

                  (a)      all income taxes of such Person and its Restricted
                  Subsidiaries paid or accrued in accordance with GAAP for such
                  period;

                  (b)      Consolidated Interest Expense; and

                  (c)      Consolidated Non-cash Charges less any non-cash items
                  increasing Consolidated Net Income for such period,

                  all as determined on a consolidated basis for such Person and
                  its Restricted Subsidiaries in accordance with GAAP.

                  "Consolidated Fixed Charge Coverage Ratio" means, with respect
                  to any Person, the ratio of Consolidated EBITDA of such Person
                  during the four full fiscal quarters (the "Four Quarter
                  Period") ending prior to the date of the transaction giving
                  rise to the need to calculate the Consolidated Fixed Charge
                  Coverage Ratio for which financial statements are available
                  (the "Transaction Date") to Consolidated Fixed Charges of such
                  Person for the Four Quarter Period. In addition to and without
                  limitation of the foregoing, for purposes of this definition,
                  "Consolidated EBITDA" and "Consolidated Fixed Charges" shall
                  be calculated after giving effect on a pro forma basis for the
                  period of such calculation to:

                  (1)      the incurrence or repayment of any Indebtedness of
                  such Person or any of its Restricted Subsidiaries (and the
                  application of the proceeds thereof) giving rise to the need
                  to make such calculation and any incurrence or repayment of
                  other Indebtedness (and the application of the proceeds
                  thereof), other than the incurrence or repayment of
                  Indebtedness in the ordinary course of business for working
                  capital purposes pursuant to working capital

                                       10

<PAGE>

                  facilities, occurring during the Four Quarter Period or at any
                  time subsequent to the last day of the Four Quarter Period and
                  on or prior to the Transaction Date, as if such incurrence or
                  repayment, as the case may be (and the application of the
                  proceeds thereof), occurred on the first day of the Four
                  Quarter Period; and

                  (2)      any Asset Sales or other disposition or Asset
                  Acquisitions (including, without limitation, any Asset
                  Acquisition giving rise to the need to make such calculation
                  as a result of such Person or one of its Restricted
                  Subsidiaries (including any Person who becomes a Restricted
                  Subsidiary as a result of the Asset Acquisition) incurring,
                  assuming or otherwise being liable for Acquired Indebtedness
                  and also including any Consolidated EBITDA attributable to the
                  assets which are the subject of the Asset Acquisition or Asset
                  Sale or other disposition during the Four Quarter Period)
                  occurring during the Four Quarter Period or at any time
                  subsequent to the last day of the Four Quarter Period and on
                  or prior to the Transaction Date, as if such Asset Sale or
                  other disposition or Asset Acquisition (including the
                  incurrence, assumption or liability for any such Acquired
                  Indebtedness) occurred on the first day of the Four Quarter
                  Period.

                  For purposes of this definition, whenever pro forma effect is
                  to be given to an Asset Acquisition and the amount of income
                  or earnings relating thereto, the pro forma calculations shall
                  be determined in good faith by a responsible financial or
                  accounting Officer of the Company and shall comply with the
                  requirements of Rule 11-02 of Regulation S-X promulgated by
                  the Commission, except that such pro forma calculations may
                  include operating expense reductions for such period resulting
                  from the acquisition which is being given pro forma effect
                  that have been realized or for which the steps necessary for
                  realization have been taken or are reasonably expected to be
                  taken within six months following any such Asset Acquisition,
                  including, but not limited to, the execution or termination of
                  any contracts, the termination of any personnel or the closing
                  (or approval by the Board of Directors of the Company of any
                  closing) of any facility, as applicable, provided that, in
                  either case, such adjustments are set forth in an Officers'
                  Certificate signed by the Company's chief financial officer
                  and another Officer which states (i) the amount of such
                  adjustment or adjustments, (ii) that such adjustment or
                  adjustments are based on the reasonable good faith beliefs of
                  the Officers executing such Officers' Certificate at the time
                  of such execution and (iii) that any related incurrence of
                  Indebtedness is permitted pursuant to this Indenture.

                                       11

<PAGE>

                  If such Person or any of its Restricted Subsidiaries directly
                  or indirectly guarantees Indebtedness of a third Person, the
                  preceding sentence shall give effect to the incurrence of such
                  guaranteed Indebtedness as if such Person or any Restricted
                  Subsidiary of such Person had directly incurred or otherwise
                  assumed such guaranteed Indebtedness.

                  Furthermore, in calculating "Consolidated Fixed Charges" for
                  purposes of determining the denominator (but not the
                  numerator) of this "Consolidated Fixed Charge Coverage Ratio":

                  (1)      interest on outstanding Indebtedness determined on a
                  fluctuating basis as of the Transaction Date and which will
                  continue to be so determined thereafter shall be deemed to
                  have accrued at a fixed rate per annum equal to the rate of
                  interest on such Indebtedness in effect on the Transaction
                  Date; and

                  (2)      notwithstanding clause (1) above, interest on
                  Indebtedness determined on a fluctuating basis, to the extent
                  such interest is covered by agreements relating to Interest
                  Swap Obligations, shall be deemed to accrue at the rate per
                  annum resulting after giving effect to the operation of such
                  agreements.

                  "Consolidated Fixed Charges" means, with respect to any Person
                  for any period, the sum, without duplication, of:

                  (1)      Consolidated Interest Expense (excluding the
                  amortization or write-off of deferred financing costs); plus

                  (2)      the product of (x) the amount of all dividend
                  payments on any series of Preferred Stock of such Person and,
                  to the extent permitted under this Indenture, its Restricted
                  Subsidiaries (other than dividends paid in Qualified Capital
                  Stock) paid, accrued or scheduled to be paid or accrued during
                  such period times (y) a fraction, the numerator of which is
                  one and the denominator of which is one minus the then current
                  effective consolidated federal, state and local income tax
                  rate of such Person, expressed as a decimal.

                  "Consolidated Interest Expense" means, with respect to any
                  Person for any period, the sum of, without duplication:

                  (1)      the aggregate of the interest expense of such Person
                  and its Restricted Subsidiaries for such period determined on
                  a consolidated basis in accordance with GAAP, including
                  without limitation: (a) any amortization of debt discount and
                  amortization or write-off of deferred financing costs; (b) the
                  net costs under

                                       12

<PAGE>

                  Interest Swap Obligations; (c) all capitalized interest; and
                  (d) the interest portion of any deferred payment obligation;
                  and

                  (2)      the interest component of Capitalized Lease
                  Obligations paid, accrued and/or scheduled to be paid or
                  accrued by such Person and its Restricted Subsidiaries during
                  such period as determined on a consolidated basis in
                  accordance with GAAP.

                  "Consolidated Net Income" means, with respect to any Person,
                  for any period, the aggregate net income (or loss) of such
                  Person and its Restricted Subsidiaries for such period on a
                  consolidated basis, determined in accordance with GAAP;
                  provided that there shall be excluded therefrom (without
                  duplication):

                  (1)      after-tax gains and losses from Asset Sales (without
                  regard to the $5.0 million limitation set forth in the
                  definition thereof) or abandonments or reserves relating
                  thereto;

                  (2)      after-tax items classified as extraordinary or
                  nonrecurring gains and losses;

                  (3)      the net income of any Person acquired in a "pooling
                  of interests" transaction accrued prior to the date it becomes
                  a Restricted Subsidiary of the referent Person or is merged or
                  consolidated with the referent Person or any Restricted
                  Subsidiary of the referent Person;

                  (4)      the net income (but not loss) of any Restricted
                  Subsidiary of the referent Person to the extent that the
                  declaration of dividends or similar distributions by that
                  Restricted Subsidiary of that income is restricted by a
                  contract, operation of law or otherwise, unless received;

                  (5)      the net income of any Person, other than a Restricted
                  Subsidiary of the referent Person, except to the extent of
                  cash dividends or distributions paid to the referent Person or
                  to a Restricted Subsidiary of the referent Person by such
                  Person;

                  (6)      any restoration to income of any contingency reserve,
                  except to the extent that provision for such reserve was made
                  out of Consolidated Net Income accrued at any time following
                  the Issue Date;

                  (7)      income or loss attributable to discontinued
                  operations; and

                  (8)      in the case of a successor to the referent Person by
                  consolidation or merger or as a transferee of the referent
                  Person's

                                       13

<PAGE>

                  assets, any earnings of the successor corporation prior to
                  such consolidation, merger or transfer of assets.

                  Notwithstanding the foregoing, "Consolidated Net Income" shall
                  be calculated without giving effect to:

                  (i)      any premiums, fees or expenses incurred in connection
                  with the transactions; and

                  (ii)     the amortization, depreciation or non-cash charge of
                  any amounts required or permitted by Statement of Financial
                  Accounting Standards No. 141, "Business Combinations," and No.
                  142, "Goodwill and Other Intangible Assets," or any successor
                  pronouncements of the Financial Accounting Standards Board or
                  with respect to the impairment of the value of any long-lived
                  assets.

                  "Consolidated Net Worth" of any Person means the consolidated
                  stockholders' equity of such Person, determined on a
                  consolidated basis in accordance with GAAP, less (without
                  duplication) amounts attributable to Disqualified Capital
                  Stock of such Person.

                  "Consolidated Non-cash Charges" means, with respect to any
                  Person, for any period, the aggregate depreciation,
                  amortization and other non-cash expenses of such Person and
                  its Restricted Subsidiaries reducing Consolidated Net Income
                  of such Person and its Restricted Subsidiaries for such
                  period, determined on a consolidated basis in accordance with
                  GAAP (excluding any such charges constituting an extraordinary
                  item or loss or any such charge which requires an accrual of
                  or a reserve for cash charges for any future period).

                  "Corporate Trust Office of the Trustee" means the principal
                  office of the Trustee at which at any time its corporate trust
                  business shall be administered, which office at the date
                  hereto is located at 707 Wilshire Boulevard, 17th Floor, Los
                  Angeles, California 90017, Attention: Corporate Trust
                  Department, or such other address as the Trustee may designate
                  from time to time by notice to the Holders and the Company, or
                  the principal corporate trust office of any successor Trustee
                  (or such other address as such successor Trustee may designate
                  from time to time by notice to the Holders and the Company).

                  "Credit Agreement" means the Credit Agreement entered into on
                  the Issue Date, among Holdings, the Company, Solvest Ltd., the
                  lenders party thereto in their capacities as lenders
                  thereunder and Deutsche Bank AG New York Branch, as
                  administrative agent,

                                       14

<PAGE>

                  The Bank of Nova Scotia and Bank of America, N.A., as
                  co-syndication agents, and Fleet National Bank and Societe
                  Generale, as co-documentation agents, together with the
                  related documents thereto (including, without limitation, any
                  guarantee agreements and security documents), in each case as
                  such agreements may be amended (including any amendment and
                  restatement thereof), supplemented or otherwise modified from
                  time to time, including any agreement extending the maturity
                  of, refinancing, replacing or otherwise restructuring
                  (including, without limitation, increasing the amount of
                  available borrowings thereunder or adding Restricted
                  Subsidiaries of the Company as additional borrowers or
                  guarantors thereunder) all or any portion of the Indebtedness
                  under such agreement or any successor or replacement agreement
                  or agreements and whether by the same or any other agent,
                  lender or group of lenders.

                  "Currency Agreement" means any foreign exchange contract,
                  currency swap agreement or other similar agreement or
                  arrangement designed to protect the Company or any Restricted
                  Subsidiary of the Company against fluctuations in currency
                  values.

                  "Default" means an event or condition the occurrence of which
                  is, or with the lapse of time or the giving of notice or both
                  would be, an Event of Default.

                  "Disqualified Capital Stock" means that portion of any Capital
                  Stock which, by its terms (or by the terms of any security
                  into which it is convertible or for which it is exchangeable
                  at the option of the holder thereof), or upon the happening of
                  any event (other than an event which would constitute a Change
                  of Control or an Asset Sale and other than an event of default
                  as a result of the bankruptcy, insolvency or similar event of
                  the issuer thereof contained in a security into which such
                  Capital Stock is convertible or for which it is exchangeable),
                  matures or is mandatorily redeemable, pursuant to a sinking
                  fund obligation or otherwise, or is redeemable at the sole
                  option of the holder thereof (except, in each case, upon the
                  occurrence of a Change of Control or an Asset Sale and other
                  than an event of default as a result of the bankruptcy,
                  insolvency or similar event of the issuer thereof contained in
                  a security into which such Capital Stock is convertible or for
                  which it is exchangeable), on or prior to the final maturity
                  date of the 2009 Notes or the 2013 Notes, as applicable.

                  "Domestic Restricted Subsidiary" means a Restricted Subsidiary
                  incorporated or otherwise organized or existing under the laws
                  of the United States, any state thereof or any territory or
                  possession of the United States.

                                       15

<PAGE>

                  "Equity Offering" means any public or private sale or issuance
                  of Qualified Capital Stock of Holdings or the Company;
                  provided that, in the event of an Equity Offering by Holdings,
                  Holdings contributes to the capital of the Company the portion
                  of the net cash proceeds of such Equity Offering necessary to
                  pay the aggregate redemption price (plus accrued interest to
                  the Redemption Date) of the New Senior Notes to be redeemed
                  pursuant to Section 3.8 of the New Senior Notes Indenture.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
                  amended, or any successor statute or statutes thereto.

                  "Existing Notes" means the Company's 8.625% Senior Notes due
                  2009 (the "2009 Notes") and the Company's 8.75% Debentures due
                  2013 (the "2013 Notes").

                  "fair market value" means, with respect to any asset or
                  property, the price which could be negotiated in an
                  arm's-length, free market transaction, for cash, between a
                  willing seller and a willing and able buyer, neither of whom
                  is under undue pressure or compulsion to complete the
                  transaction. Fair market value shall be determined by the
                  Board of Directors of the Company acting reasonably and in
                  good faith and shall be evidenced by a Board Resolution of the
                  Board of Directors of the Company delivered to the Trustee.

                  "Final Memorandum" shall mean the Company's final offering
                  memorandum dated March 17, 2003, whereby the Company offered
                  $475,000,000 aggregate principal amount of its New Senior
                  Notes.

                  "Foreign Restricted Subsidiary" means any Restricted
                  Subsidiary other than a Domestic Restricted Subsidiary.

                  "GAAP" means generally accepted accounting principles set
                  forth in the opinions and pronouncements of the Accounting
                  Principles Board of the American Institute of Certified Public
                  Accountants and statements and pronouncements of the Financial
                  Accounting Standards Board or in such other statements by such
                  other entity as may be approved by a significant segment of
                  the accounting profession of the United States, which are in
                  effect as of the Issue Date.

                  "Guarantee" has the meaning set forth in Section 1601.

                  "Guarantor" means: (1) certain of the Company's Domestic
                  Restricted Subsidiaries as of the Issue Date; and (2) each of
                  the Company's Restricted Subsidiaries that in the future
                  executes a

                                       16

<PAGE>

                  supplemental indenture in which such Restricted Subsidiary
                  agrees to be bound by the terms of this Indenture as a
                  Guarantor; provided that any Person constituting a Guarantor
                  as described above shall cease to constitute a Guarantor when
                  its respective Guarantee is released in accordance with the
                  terms of this Indenture.

                  "Guarantor Designated Senior Debt" means (1) Indebtedness of a
                  Guarantor under or in respect of the Credit Agreement and (2)
                  any other Indebtedness of a Guarantor constituting Guarantor
                  Senior Debt which, at the time of determination, has an
                  aggregate principal amount of at least $50.0 million and is
                  specifically designated in the instrument evidencing such
                  Guarantor Senior Debt as "Guarantor Designated Senior Debt" by
                  the Company.

                  "Guarantor Senior Debt" means, with respect to any Guarantor:
                  the principal of, premium, if any, and interest (including any
                  interest accruing subsequent to the filing of a petition of
                  bankruptcy at the rate provided for in the documentation with
                  respect thereto, whether or not such interest is an allowed
                  claim under applicable law) on any Indebtedness of, or
                  guaranteed by, a Guarantor, whether outstanding on the Issue
                  Date or thereafter created, incurred or assumed, unless, in
                  the case of any particular Indebtedness, the instrument
                  creating or evidencing the same or pursuant to which the same
                  is outstanding expressly provides that such Indebtedness shall
                  not be senior in right of payment to the Guarantee of such
                  Guarantor. Without limiting the generality of the foregoing,
                  "Guarantor Senior Debt" shall also include the principal of,
                  premium, if any, interest (including any interest accruing
                  subsequent to the filing of a petition of bankruptcy at the
                  rate provided for in the documentation with respect thereto,
                  whether or not such interest is an allowed claim under
                  applicable law) on, and all other amounts owing in respect of
                  (including guarantees of the foregoing obligations):

                  (x)      all monetary obligations of every nature of such
                  Guarantor under, or with respect to, the Credit Agreement,
                  including, without limitation, obligations to pay principal,
                  premium and interest, reimbursement obligations under letters
                  of credit and bank guarantees, fees, expenses and indemnities
                  (and guarantees thereof);

                  (y)      all Interest Swap Obligations (and guarantees
                  thereof); and

                  (z)      all obligations under Currency Agreements (and
                  guarantees thereof),

                                       17

<PAGE>

                  in each case whether outstanding on the Issue Date or
                  thereafter incurred.

                  Notwithstanding the foregoing, "Guarantor Senior Debt" shall
                  not include:

                  (1)      any Indebtedness of such Guarantor to a Subsidiary of
                  such Guarantor;

                  (2)      Indebtedness to, or guaranteed on behalf of, any
                  director, officer or employee of such Guarantor or any
                  Subsidiary of such Guarantor (including, without limitation,
                  amounts owed for compensation);

                  (3)      Indebtedness to trade creditors and other amounts
                  incurred in connection with obtaining goods, materials or
                  services; provided that obligations incurred pursuant to the
                  Credit Agreement shall not be excluded pursuant to this clause
                  (3);

                  (4)      Indebtedness represented by Disqualified Capital
                  Stock;

                  (5)      any liability for federal, state, local or other
                  taxes owed or owing by such Guarantor;

                  (6)      that portion of any Indebtedness incurred in
                  violation of Section 1014 (but, as to any such obligation, no
                  such violation shall be deemed to exist for purposes of this
                  clause (6) if the holder(s) of such obligation or their
                  representative shall have received an officer's certificate
                  (and/or a representation or warranty) from the Company to the
                  effect that the incurrence of such Indebtedness does not (or,
                  in the case of revolving credit indebtedness, that the
                  incurrence of the entire committed amount thereof at the date
                  on which the initial borrowing thereunder is made would not)
                  violate such Section);

                  (7)      with respect to any Guarantor, Indebtedness which,
                  when incurred and without respect to any election under
                  Section 1111(b) of Title 11, United States Code, is without
                  recourse to such Guarantor;

                  (8)      Guarantees or the guarantees of the New Senior Notes;
                  and

                  (9)      with respect to any Guarantor, any Indebtedness which
                  is, by its express terms, subordinated in right of payment to
                  any other Indebtedness of such Guarantor.

                  "Holder" means a Person in whose name a Note is registered.

                                       18

<PAGE>

                  "Holdings" means DHM Holding Company, Inc., a Delaware
                  corporation and the parent of the Company.

                  "Indebtedness" means with respect to any Person, without
                  duplication:

                  (1)      all Obligations of such Person for borrowed money;

                  (2)      all Obligations of such Person evidenced by bonds,
                  debentures, notes or other similar instruments;

                  (3)      all Capitalized Lease Obligations of such Person;

                  (4)      all Obligations of such Person issued or assumed as
                  the deferred purchase price of property, all conditional sale
                  obligations and all Obligations under any title retention
                  agreement (but excluding trade accounts payable and other
                  accrued liabilities arising in the ordinary course of business
                  that are not overdue by 120 days or more or are being
                  contested in good faith by appropriate proceedings promptly
                  instituted and diligently conducted and payables under the
                  Company's grower loans program in the ordinary course of
                  business and consistent with past practice);

                  (5)      all Obligations for the reimbursement of any obligor
                  on any letter of credit, banker's acceptance or similar credit
                  transaction;

                  (6)      guarantees and other contingent obligations in
                  respect of Indebtedness referred to in clauses (1) through (5)
                  above and clause (8) below;

                  (7)      all Obligations of any other Person of the type
                  referred to in clauses (1) through (6) which are secured by
                  any Lien on any property or asset of such Person, the amount
                  of such Obligation being deemed to be the lesser of the fair
                  market value of such property or asset or the amount of the
                  Obligation so secured;

                  (8)      all Obligations under Currency Agreements and
                  Interest Swap Obligations of such Person; and

                  (9)      all Disqualified Capital Stock issued by such Person
                  with the amount of Indebtedness represented by such
                  Disqualified Capital Stock being equal to the greater of its
                  voluntary or involuntary liquidation preference and its
                  maximum fixed repurchase price, but excluding accrued
                  dividends, if any.

                  For purposes hereof, the "maximum fixed repurchase price" of
                  any Disqualified Capital Stock which does not have a fixed
                  repurchase

                                       19

<PAGE>

                  price shall be calculated in accordance with the terms of such
                  Disqualified Capital Stock as if such Disqualified Capital
                  Stock were purchased on any date on which Indebtedness shall
                  be required to be determined pursuant to this Indenture, and
                  if such price is based upon, or measured by, the fair market
                  value of such Disqualified Capital Stock, such fair market
                  value shall be determined reasonably and in good faith by the
                  Board of Directors of the issuer of such Disqualified Capital
                  Stock.

                  "Indenture" means this Indenture, as amended or supplemented
                  from time to time.

                  "Independent Financial Advisor" means a firm: (1) which does
                  not, and whose directors, officers and employees or Affiliates
                  do not, have a direct or indirect financial interest in the
                  Company; and (2) which, in the judgment of the Board of
                  Directors of the Company, is otherwise independent and
                  qualified to perform the task for which it is to be engaged.

                  "Interest Swap Obligations" means the obligations of any
                  Person pursuant to any arrangement with any other Person,
                  whereby, directly or indirectly, such Person is entitled to
                  receive from time to time periodic payments calculated by
                  applying either a floating or a fixed rate of interest on a
                  stated notional amount in exchange for periodic payments made
                  by such other Person calculated by applying a fixed or a
                  floating rate of interest on the same notional amount and
                  shall also include, without limitation, interest rate swaps,
                  caps, floors, collars and similar agreements.

                  "Investment" means, with respect to any Person, any direct or
                  indirect loan or other extension of credit (including, without
                  limitation, a guarantee) or capital contribution to (by means
                  of any transfer of cash or other property to others or any
                  payment for property or services for the account or use of
                  others), or any purchase or acquisition by such Person of any
                  Capital Stock, bonds, notes, debentures or other securities or
                  evidences of Indebtedness issued by, any other Person.
                  "Investment" shall exclude extensions of trade credit by the
                  Company and its Restricted Subsidiaries on commercially
                  reasonable terms in accordance with normal trade practices of
                  the Company or such Restricted Subsidiaries, as the case may
                  be. If the Company or any Restricted Subsidiary of the Company
                  sells or otherwise disposes of any Common Stock of any direct
                  or indirect Restricted Subsidiary of the Company such that,
                  after giving effect to any such sale or disposition, the
                  Company no longer owns, directly or indirectly, 50% of the
                  outstanding Common Stock of such Restricted Subsidiary, the
                  Company shall be deemed to have made

                                       20

<PAGE>

                  an Investment on the date of any such sale or disposition
                  equal to the fair market value of the Common Stock of such
                  Restricted Subsidiary not sold or disposed of.

                  "Issue Date" means March 28, 2003, the date of original
                  issuance of the New Senior Notes.

                  "Net Cash Proceeds" means, with respect to any Asset Sale, the
                  proceeds in the form of cash or Cash Equivalents including
                  payments in respect of deferred payment obligations when
                  received in the form of cash or Cash Equivalents (other than
                  the portion of any such deferred payment constituting
                  interest) received by the Company or any of its Restricted
                  Subsidiaries from such Asset Sale net of:

                  (1)      reasonable out-of-pocket expenses and fees relating
                  to such Asset Sale (including, without limitation, legal,
                  accounting and investment banking fees and sales commissions);

                  (2)      taxes paid or payable after taking into account any
                  reduction in consolidated tax liability due to available tax
                  credits or deductions and any tax sharing arrangements;

                  (3)      repayment of Indebtedness that is secured by the
                  property or assets that are the subject of such Asset Sale or
                  that is required, pursuant to an agreement or instrument
                  existing on the Issue Date, to be repaid from the proceeds of
                  such Asset Sale other than pursuant to this Indenture; and

                  (4)      appropriate amounts to be provided by the Company or
                  any Restricted Subsidiary, as the case may be, as a reserve,
                  in accordance with GAAP, against any liabilities associated
                  with such Asset Sale and retained by the Company or any
                  Restricted Subsidiary, as the case may be, after such Asset
                  Sale, including, without limitation, pension and other
                  post-employment benefit liabilities, liabilities related to
                  environmental matters and liabilities under any
                  indemnification obligations associated with such Asset Sale.

                  "New Senior Notes" means the $475.0 million aggregate
                  principal amount of the Company's 8-7/8% Senior Notes due
                  2011.

                  "New Senior Notes Indenture" means the Indenture, dated as of
                  March 28, 2003, by and among the Company, the Guarantors and
                  the Trustee relating to the New Senior Notes.

                                       21

<PAGE>

                  "Notes" means the Existing Notes and any other Notes, if any,
                  that are issued under this Indenture, as amended or
                  supplemented from time to time.

                  "Obligations" means all obligations for principal, premium,
                  interest (including any interest accruing subsequent to the
                  filing of a petition of bankruptcy at the rate provided for in
                  the documentation with respect thereto, whether or not such
                  interest is an allowed claim under applicable law), penalties,
                  fees, indemnifications, reimbursements, damages and other
                  liabilities payable under the documentation governing any
                  Indebtedness.

                  "Officer" means the Chairman of the Board, the Chief Executive
                  Officer, the Chief Financial Officer, the President, any Vice
                  President, the Treasurer or the Secretary of the Company.

                  "Officers' Certificate" means a certificate signed by two
                  officers of the Company, at least one of whom shall be the
                  principal executive officer or principal financial officer of
                  the Company, and delivered to the Trustee.

                  "Opinion of Counsel" means an opinion from legal counsel who
                  is reasonably acceptable to the Trustee that meets the
                  requirements of Section 301 hereof. The counsel may be an
                  employee of or counsel to the Company, any Subsidiary of the
                  Company or the Trustee.

                  "Pari Passu Debt" means any Indebtedness of the Company or any
                  Guarantor that ranks pari passu in right of payment with the
                  Notes or such Guarantee, as applicable.

                  "Permitted Holders" means (i) David H. Murdock, his estate,
                  spouse, heirs, ancestors, lineal descendants, legatees, legal
                  representatives or the trustee of a bona fide trust of which
                  one or more of the foregoing are the principal beneficiaries
                  or grantors thereof and (ii) any entity controlled, directly
                  or indirectly, by any Persons referred to in the preceding
                  clause (i), whether through the ownership of voting
                  securities, by contract or otherwise.

                  "Permitted Indebtedness" means, without duplication, each of
                  the following:

                  (1)      Indebtedness under the New Senior Notes or the
                  exchange notes issued in exchange for the New Senior Notes
                  pursuant to a registration statement in an aggregate principal
                  amount not to exceed $475.0 million and the Guarantees
                  thereof;

                                       22

<PAGE>

                  (2)      Indebtedness incurred pursuant to the Credit
                  Agreement in an aggregate principal amount at any time
                  outstanding not to exceed $1,125.0 million less the amount of
                  all repayments of terms loans and permanent commitment
                  reductions in the revolving credit portion of the Credit
                  Agreement actually made with Net Cash Proceeds of Asset Sales
                  applied thereto as required by Section 1015;

                  (3)      other Indebtedness of the Company and its Restricted
                  Subsidiaries outstanding on the Issue Date (including any
                  "put" or similar rights of minority holders of Restricted
                  Subsidiaries in existence as of the Issue Date) reduced by the
                  amount of any scheduled amortization payments or mandatory
                  prepayments when actually paid or permanent reductions
                  thereon;

                  (4)      Interest Swap Obligations of the Company or any
                  Restricted Subsidiary of the Company covering Indebtedness of
                  the Company or any of its Restricted Subsidiaries; provided,
                  however, that such Interest Swap Obligations are entered into
                  to protect the Company and its Restricted Subsidiaries from
                  fluctuations in interest rates on their outstanding
                  Indebtedness to the extent the notional principal amount of
                  any such Interest Swap Obligation does not, at the time of the
                  initial incurrence thereof, exceed the principal amount of the
                  Indebtedness to which such Interest Swap Obligation relates;

                  (5)      (A) Indebtedness under Currency Agreements; provided
                  that in the case of Currency Agreements which relate to
                  Indebtedness, such Currency Agreements do not increase the
                  Indebtedness of the Company and its Restricted Subsidiaries
                  outstanding other than as a result of fluctuations in foreign
                  currency exchange rates or by reason of fees, indemnities and
                  compensation payable thereunder and (B) Indebtedness under
                  Commodities Agreements;

                  (6)      Indebtedness of a Restricted Subsidiary of the
                  Company to the Company or to a Wholly Owned Restricted
                  Subsidiary of the Company for so long as such Indebtedness is
                  held by the Company or a Wholly Owned Restricted Subsidiary of
                  the Company or the holder of a Lien permitted under this
                  Indenture, in each case subject to no Lien held by a Person
                  other than the Company or a Wholly Owned Restricted Subsidiary
                  of the Company or the holder of a Lien permitted under this
                  Indenture; provided that if as of any date any Person other
                  than the Company or a Wholly Owned Restricted Subsidiary of
                  the Company or the holder of a Lien permitted under this
                  Indenture owns or holds any such Indebtedness or holds a Lien
                  in respect of such Indebtedness, such

                                       23

<PAGE>

                  date shall be deemed the incurrence of Indebtedness not
                  constituting Permitted Indebtedness under this clause (6) by
                  the issuer of such Indebtedness;

                  (7)      (A) Indebtedness of the Company to a Wholly Owned
                  Restricted Subsidiary of the Company for so long as such
                  Indebtedness is held by a Wholly Owned Restricted Subsidiary
                  of the Company or the holder of a Lien permitted under this
                  Indenture, in each case subject to no Lien other than a Lien
                  permitted under this Indenture; provided that (a) any
                  Indebtedness of the Company to any Wholly Owned Restricted
                  Subsidiary of the Company that is not a Guarantor is unsecured
                  and subordinated, pursuant to a written agreement, to the
                  Company's obligations under this Indenture and the Notes and
                  (b) if as of any date any Person other than a Wholly Owned
                  Restricted Subsidiary of the Company or the holder of a Lien
                  permitted under this Indenture owns or holds any such
                  Indebtedness or holds a Lien in respect of such Indebtedness,
                  such date shall be deemed the incurrence of Indebtedness not
                  constituting Permitted Indebtedness under this clause (7) by
                  the Company and (B) Indebtedness of the Company or any of its
                  Restricted Subsidiaries to Saba Trading AB or any other
                  Restricted Subsidiary of the Company that is not a Wholly
                  Owned Restricted Subsidiary of the Company in the ordinary
                  course of business consistent with past practice;

                  (8)      Indebtedness arising from the honoring by a bank or
                  other financial institution of a check, draft or similar
                  instrument inadvertently (except in the case of daylight
                  overdrafts) drawn against insufficient funds in the ordinary
                  course of business; provided, however, that such Indebtedness
                  is extinguished within five business days of incurrence;

                  (9)      Indebtedness of the Company or any of its Restricted
                  Subsidiaries in respect of performance bonds, bankers'
                  acceptances, workers' compensation claims, surety or appeal
                  bonds, payment obligations in connection with self-insurance
                  or similar obligations, completion or performance guarantees
                  or standby letters of credit issued for the purpose of
                  supporting such obligations and bank overdrafts (and letters
                  of credit in respect thereof) in the ordinary course of
                  business;

                  (10)     Indebtedness represented by Capitalized Lease
                  Obligations, mortgage financings and Purchase Money
                  Indebtedness of the Company and its Restricted Subsidiaries
                  incurred in the ordinary course of business not to exceed
                  $25.0 million at any one time outstanding;

                                       24

<PAGE>

                  (11)     Refinancing Indebtedness;

                  (12)     Indebtedness represented by guarantees by the Company
                  or its Restricted Subsidiaries of Indebtedness otherwise
                  permitted to be incurred under this Indenture;

                  (13)     Indebtedness of the Company or any Restricted
                  Subsidiary consisting of guarantees, indemnities or
                  obligations in respect of purchase price adjustments in
                  connection with the acquisition or disposition of assets or
                  the Capital Stock of Subsidiaries;

                  (14)     guarantees furnished by the Company or its Restricted
                  Subsidiaries in the ordinary course of business of
                  Indebtedness of another Person in an aggregate amount not to
                  exceed $25.0 million at any one time outstanding;

                  (15)     Indebtedness incurred under commercial letters of
                  credit issued for the account of the Company or any of its
                  Restricted Subsidiaries in the ordinary course of business
                  (and not for the purpose of, directly or indirectly, incurring
                  Indebtedness or providing credit support or a similar
                  arrangement in respect of Indebtedness), provided that any
                  drawing under any such letter of credit is reimbursed in full
                  within seven days;

                  (16)     Indebtedness of the Company or any of its Restricted
                  Subsidiaries relating to any "earn-out" obligations payable in
                  connection with any acquisition made by the Company or any
                  Restricted Subsidiary not prohibited by this Indenture;

                  (17)     Indebtedness of Foreign Restricted Subsidiaries in an
                  aggregate principal amount not to exceed $50.0 million at any
                  one time outstanding;

                  (18)     Indebtedness of Foreign Restricted Subsidiaries (and
                  any guarantee thereof by the Company) incurred in connection
                  with grower loan programs in an aggregate principal amount not
                  to exceed $50.0 million at any one time outstanding;

                  (19)     without duplication, Indebtedness of the Company or
                  any of its Restricted Subsidiaries under letters of credit and
                  bank guarantees required by governmental laws, orders and
                  regulations which letters of credit will be backstopped by
                  letters of credit under the Credit Agreement;

                  (20)     Indebtedness of the Company or any of its Restricted
                  Subsidiaries incurred in connection with vehicle inventory
                  loans in an aggregate principal amount not to exceed $5.0
                  million at any one time outstanding;

                                       25

<PAGE>

                  (21)     Indebtedness of the Company and its Restricted
                  Subsidiaries representing Obligations in existence on the
                  Issue Date that become Indebtedness after the Issue Date as a
                  result of the implementation of FASB Interpretation No. 46,
                  "Consolidation of Variable Interest Entities"; and

                  (22)     additional Indebtedness of the Company and its
                  Restricted Subsidiaries in an aggregate principal amount not
                  to exceed $35.0 million at any one time outstanding (which
                  amount may, but need not, be incurred in whole or in part
                  under the Credit Agreement).

                  For purposes of determining compliance with Section 1014, in
                  the event that an item of Indebtedness meets the criteria of
                  more than one of the categories of Permitted Indebtedness
                  described in clauses (1) through (22) above or is entitled to
                  be incurred pursuant to the Consolidated Fixed Charge Coverage
                  Ratio provisions of Section 1014 hereof, the Company shall, in
                  its sole discretion, classify (or from time to time may
                  reclassify) such item of Indebtedness in any manner that
                  complies with this definition and such item of Indebtedness
                  will be treated as having been incurred pursuant to only one
                  of such categories. Accrual of interest, accretion or
                  amortization of original issue discount, a change in the
                  amount of Indebtedness due solely to fluctuations in the
                  exchange rates of currencies, the payment of interest on any
                  Indebtedness in the form of additional Indebtedness with the
                  same terms, and the payment of dividends on Disqualified
                  Capital Stock in the form of additional shares of the same
                  class of Disqualified Capital Stock will not be deemed to be
                  an incurrence of Indebtedness or an issuance of Disqualified
                  Capital Stock for purposes of Section 1014 hereof.

                  "Permitted Investments" means:

                  (1)      Investments by the Company or any Restricted
                  Subsidiary of the Company in any Person that is or will become
                  immediately after such Investment a Restricted Subsidiary of
                  the Company or that will merge or consolidate into the Company
                  or a Restricted Subsidiary of the Company;

                  (2)      Investments in the Company by any Restricted
                  Subsidiary of the Company; provided that any Indebtedness
                  (other than Indebtedness to Saba Trading AB or any other
                  Restricted Subsidiary of the Company that is not a Wholly
                  Owned Restricted Subsidiary of the Company in the ordinary
                  course of business consistent with past practice) evidencing
                  such Investment and held by a Restricted Subsidiary that is
                  not a Guarantor is unsecured and

                                       26

<PAGE>

                  subordinated, pursuant to a written agreement, to the
                  Company's obligations under the Notes and this Indenture;

                  (3)      Investments in cash and Cash Equivalents;

                  (4)      loans to employees, directors and officers of the
                  Company and its Restricted Subsidiaries in the ordinary course
                  of business for bona fide business purposes not in excess of
                  $5.0 million at any one time outstanding;

                  (5)      Obligations under Currency Agreements, Interest Swap
                  Obligations and Commodities Agreements entered into in the
                  ordinary course of the Company's or its Restricted
                  Subsidiaries' businesses and not for speculative purposes and
                  otherwise in compliance with this Indenture;

                  (6)      additional Investments not to exceed $50.0 million at
                  any one time outstanding;

                  (7)      Investments in securities of trade creditors,
                  licensors, licensees or customers received pursuant to any
                  plan of reorganization or similar arrangement upon the
                  bankruptcy or insolvency of such trade creditors or customers
                  or in good faith settlement of delinquent obligations of such
                  trade creditors or customers;

                  (8)      Investments made by the Company or its Restricted
                  Subsidiaries as a result of consideration received in
                  connection with an Asset Sale made in compliance with Section
                  1015, whether or not such consideration is equal to or greater
                  than $5.0 million;

                  (9)      Investments represented by guarantees that are
                  otherwise permitted under this Indenture;

                  (10)     Investments the payment for which is Qualified
                  Capital Stock of the Company;

                  (11)     Investments resulting from the creation of Liens on
                  the assets of the Company or any of its Restricted
                  Subsidiaries in compliance with Section 1008;

                  (12)     Investments by the Company or any Restricted
                  Subsidiary in connection with grower loan programs in an
                  amount not to exceed $75.0 million at any one time
                  outstanding;

                  (13)     Investments arising as a result of the exercise of
                  any "put" or similar rights of minority holders of Restricted
                  Subsidiaries or

                                       27

<PAGE>

                  "call" or similar rights of the Company in existence as of the
                  Issue Date; and

                  (14)     advances to employees, directors and officers of the
                  Company and its Restricted Subsidiaries in the ordinary course
                  of business for bona fide business purposes.

                  "Person" means an individual, partnership, corporation,
                  limited liability company, unincorporated organization, trust
                  or joint venture, or any entity similar to any of the
                  foregoing organized under the laws of other countries, or a
                  governmental agency or political subdivision thereof.

                  "Preferred Stock" of any Person means any Capital Stock of
                  such Person that has preferential rights to any other Capital
                  Stock of such Person with respect to dividends or redemptions
                  or upon liquidation.

                  "Purchase Date" means, with respect to any Note to be
                  repurchased, the date fixed for such repurchase by or pursuant
                  to this Indenture.

                  "Purchase Money Indebtedness" means Indebtedness of the
                  Company and its Restricted Subsidiaries incurred in the normal
                  course of business for the purpose of financing all or any
                  part of the purchase price, or the cost of installation,
                  construction or improvement, of property or equipment.

                  "Purchase Price" means the amount payable for the repurchase
                  of any Note on a Purchase Date, exclusive of accrued and
                  unpaid interest thereon to the Purchase Date, unless otherwise
                  specifically provided.

                  "Qualified Capital Stock" means any Capital Stock that is not
                  Disqualified Capital Stock.

                  "Redemption Date" means, with respect to any Note to be
                  redeemed, the date fixed for such redemption by or pursuant to
                  this Indenture.

                  "Redemption Price" means the amount payable for the redemption
                  of any Note on a Redemption Date, exclusive of' accrued and
                  unpaid interest thereon to the Redemption Date, unless
                  otherwise specifically provided.

                  "Refinance" means, in respect of any security or Indebtedness,
                  to refinance, extend, renew, refund, repay, prepay, redeem,
                  defease or retire, or to issue a security or Indebtedness in
                  exchange or

                                       28

<PAGE>

                  replacement for, such security or Indebtedness in whole or in
                  part. "Refinanced" and Refinancing" shall have correlative
                  meanings.

                  "Refinancing Indebtedness" means any Refinancing by the
                  Company or any Restricted Subsidiary of the Company of
                  Indebtedness incurred in accordance with Section 1014 (other
                  than pursuant to clauses (2), (4), (5), (6), (7), (8), (9),
                  (10), (12), (13) through (20) and (22) of the definition of
                  "Permitted Indebtedness"), in each case that does not:

                  (1)      result in an increase in the aggregate principal
                  amount of Indebtedness of such Person as of the date of such
                  proposed Refinancing above the sum of (i) the aggregate
                  principal amount of such Indebtedness, plus (ii) the accrued
                  interest on and the amount of any premium required to be paid
                  under the terms of the instrument governing such Indebtedness,
                  plus (iii) the amount of reasonable expenses incurred by the
                  Company in connection with such Refinancing; or

                  (2)      create Indebtedness with: (a) a Weighted Average Life
                  to Maturity that is less than the Weighted Average Life to
                  Maturity of the Indebtedness being Refinanced; or (b) a final
                  maturity earlier than the final maturity of the Indebtedness
                  being Refinanced;

                  provided that (x) if such Indebtedness being Refinanced is
                  Indebtedness solely of the Company (and is not otherwise
                  guaranteed by a Restricted Subsidiary of the Company), then
                  such Refinancing Indebtedness shall be Indebtedness solely of
                  the Company and (y) if such Indebtedness being Refinanced is
                  subordinate or junior to the Notes or the Guarantees, then
                  such Refinancing Indebtedness shall be subordinate to the
                  Notes or the Guarantees, as the case may be, at least to the
                  same extent and in the same manner as the Indebtedness being
                  Refinanced.

                  "Responsible Officer" shall mean, when used with respect to
                  the Trustee, any officer within the corporate trust department
                  of the Trustee, including any vice president, assistant vice
                  president, assistant secretary, assistant treasurer, trust
                  officer or any other officer of the Trustee who customarily
                  performs functions similar to those performed by the Persons
                  who at the time shall be such officers, respectively, or to
                  whom any corporate trust matter is referred because of such
                  person's knowledge of and familiarity with the particular
                  subject and who shall have direct responsibility for the
                  administration of this Indenture.

                  "Representative" means the indenture trustee or other trustee,
                  agent or representative in respect of any Guarantor Designated

                                       29

<PAGE>

                  Senior Debt; provided that if, and for so long as, any
                  Guarantor Designated Senior Debt lacks such a representative,
                  then the Representative for such Guarantor Designated Senior
                  Debt shall at all times constitute the holders of a majority
                  in outstanding principal amount of such Guarantor Designated
                  Senior Debt.

                  "Restricted Subsidiary" of any Person means any Subsidiary of
                  such Person which at the time of determination is not an
                  Unrestricted Subsidiary.

                  "Sale and Leaseback Transaction" means any direct or indirect
                  arrangement with any Person or to which any such Person is a
                  party, providing for the leasing to the Company or a
                  Restricted Subsidiary of any property, whether owned by the
                  Company or any Restricted Subsidiary at the Issue Date or
                  later acquired, which has been or is to be sold or transferred
                  by the Company or such Restricted Subsidiary to such Person or
                  to any other Person from whom funds have been or are to be
                  advanced by such Person on the security of such property.

                  "Significant Subsidiary", with respect to any Person, means
                  any Restricted Subsidiary of such Person that satisfies the
                  criteria for a "significant subsidiary" set forth in Rule
                  1-02(w) of Regulation S-X under the Exchange Act.

                  "Subordinated Indebtedness" means Indebtedness of the Company
                  or any Guarantor that is subordinate or junior in right of
                  payment to the Notes or the Guarantee of such Guarantor, as
                  the case may be.

                  "Subsidiary", with respect to any Person, means:

                  (1)      any corporation, association or other business entity
                  of which the outstanding Capital Stock having at least a
                  majority of the votes entitled to be cast in the election of
                  directors, managers or trustees of such corporation,
                  association or other business entity under ordinary
                  circumstances shall at the time be owned, directly or
                  indirectly, by such Person and its Subsidiaries; or

                  (2)      any partnership (a) the sole general partner or the
                  managing partner of which is such Person or a Subsidiary of
                  such Person or (b) the only general partners of which are such
                  Person and its Subsidiaries.

                  "Trustee" means the party named as such above until a
                  successor replaces it in accordance with the applicable
                  provisions of this Indenture, and thereafter means the
                  successor serving hereunder.

                                       30

<PAGE>

                  "Unrestricted Subsidiary" of any Person means:

                  (1)      any Subsidiary of such Person that at the time of
                  determination shall be or continue to be designated an
                  Unrestricted Subsidiary by the Board of Directors of such
                  Person in the manner provided below; and

                  (2)      any Subsidiary of an Unrestricted Subsidiary.

                  The Board of Directors may designate any Subsidiary (including
                  any newly acquired or newly formed Subsidiary) to be an
                  Unrestricted Subsidiary unless such Subsidiary owns any
                  Capital Stock of, or owns or holds any Lien on any property
                  of, the Company or any other Subsidiary of the Company that is
                  not a Subsidiary of the Subsidiary to be so designated;
                  provided that:

                  (1)      the Company certifies to the Trustee that such
                  designation complies with Section 1012 hereof; and

                  (2)      each Subsidiary to be so designated and each of its
                  Subsidiaries has not at the time of designation, and does not
                  thereafter, create, incur, issue, assume, guarantee or
                  otherwise become directly or indirectly liable with respect to
                  any Indebtedness pursuant to which the lender has recourse to
                  any of the assets of the Company or any of its Restricted
                  Subsidiaries.

                  For purposes of making the determination of whether any such
                  designation of a Subsidiary as an Unrestricted Subsidiary
                  complies with Section 1012 hereof, the portion of the fair
                  market value of the net assets of such Subsidiary of the
                  Company at the time that such Subsidiary is designated as an
                  Unrestricted Subsidiary that is represented by the interest of
                  the Company and its Restricted Subsidiaries in such
                  Subsidiary, in each case as determined in good faith by the
                  Board of Directors of the Company, shall be deemed to be an
                  Investment. Such designation will be permitted only if such
                  Investment would be permitted at such time under Section 1012
                  hereof.

                  The Board of Directors may designate any Unrestricted
                  Subsidiary to be a Restricted Subsidiary only if:

                  (1)      immediately after giving effect to such designation,
                  the Company is able to incur at least $1.00 of additional
                  Indebtedness (other than Permitted Indebtedness) in compliance
                  with Section 1014(a) hereof; and

                                       31

<PAGE>

                  (2)      immediately before and immediately after giving
                  effect to such designation, no Default or Event of Default
                  shall have occurred and be continuing.

                  Any such designation by the Board of Directors shall be
                  evidenced to the Trustee by promptly filing with the Trustee a
                  copy of the Board Resolution giving effect to such designation
                  and an Officers' Certificate certifying that such designation
                  complied with the foregoing provisions.

                  "Weighted Average Life to Maturity" means, when applied to any
                  Indebtedness at any date, the number of years obtained by
                  dividing (a) the then outstanding aggregate principal amount
                  of such Indebtedness into (b) the sum of the total of the
                  products obtained by multiplying (i) the amount of each then
                  remaining installment, sinking fund, serial maturity or other
                  required payment of principal, including payment at final
                  maturity, in respect thereof, by (ii) the number of years
                  (calculated to the nearest one-twelfth) which will elapse
                  between such date and the making of such payment.

                  "Wholly Owned Restricted Subsidiary" of any Person means any
                  Wholly Owned Subsidiary of such Person which at the time of
                  determination is a Restricted Subsidiary of such Person.

                  "Wholly Owned Subsidiary" of any Person means any Subsidiary
                  of such Person of which all the outstanding voting securities
                  (other than in the case of a foreign Subsidiary, directors'
                  qualifying shares or an immaterial amount of shares required
                  to be owned by other Persons pursuant to applicable law) are
                  owned by such Person or any Wholly Owned Subsidiary of such
                  Person."

         Section 102       Section References. Each reference to a particular
section set forth in this Second Supplemental Indenture shall, unless the
context otherwise requires, refer to this Second Supplemental Indenture.

                                  ARTICLE TWO
                           INCREASE IN INTEREST RATES

         Section 201       Modification of 2009 Notes. Pursuant to Section 901
of the Original Indenture, the following amendment to the terms of the Indenture
will be effective solely with respect to the 2009 Notes:

                  (a)      The following clause is added to the first sentence
of Section 204 of the First Supplemental Indenture after the words "provided
that":

                  "from and after March 28, 2003, interest shall accrue and
                  shall be paid at the rate of 8.625% per annum; provided
                  further that"

                                       32

<PAGE>

         Section 202       Modification of 2013 Notes. Pursuant to Section 901
of the Original Indenture, the following amendment to the terms of the Indenture
will be effective solely with respect to the 2013 Debentures:

                  (a)      The following clause is added to the first sentence
of Section 5 of the 1993 Officers' Certificate after the word "respectively":

                  ";provided that from and after March 28, 2003, interest on the
                  Debentures shall accrue and be paid at the rate of 8.75% per
                  annum."

                                 ARTICLE THREE
                                   AMENDMENT

         Section 301       Amendments. Pursuant to Section 901 of the Original
Indenture, the following amendments to the Original Indenture will be effective
solely with respect to the 2009 Notes and the 2013 Debentures:

                  (a)      The following Section 114 is added to Article One of
the Original Indenture, after Section 113 thereof:

                  "It is the intention of the Company that the provisions hereof
                  shall be consistent with the provisions of the New Senior
                  Notes Indenture. Notwithstanding anything to the contrary
                  contained herein, this Indenture shall not confer any greater
                  right or benefit upon the holders of the Existing Notes than
                  the rights and benefits conferred upon the holders of the New
                  Senior Notes pursuant to the New Senior Notes Indenture."

                  (b)      The following is added to clause (1) of Section 501
of the Original Indenture, after the words "period of 30 days" therein:

                  "(whether or not such payment shall be prohibited by Article
                  Fifteen of this Indenture)"

                  (c)      The following is added to clause (2) of Section 501
of the Original Indenture, after the words "at its Maturity" therein:

                  "upon redemption or otherwise (including the failure to make a
                  payment to purchase Notes tendered pursuant to a Change of
                  Control Offer or a Net Proceeds Offer) (whether or not such
                  payment shall be prohibited by Article Fifteen of this
                  Indenture)"

                  (d)      The words "60 days" in clause (4) of Section 501 of
the Original Indenture are deleted and replaced with the words "45 days".

                  (e)      The following is added to clause (4) of Section 501
of the Original Indenture, after the words "such notice is a "Notice of Default"
hereunder" therein:

                                       33

<PAGE>

                  "(except in the case of a default with respect to Section 801
                  hereof, which will constitute an Event of Default with such
                  notice requirement but without such passage of time
                  requirement)"

                  (f)      The following is added to clause (7) of Section 501
of the Original Indenture, after the words "the commencement by the Company"
therein:

                  "or any Significant Subsidiary"

                  (g)      The following clauses are added to Section 501 of the
Original Indenture, after clause (7) thereof:

                  "(8)     the failure to pay at final maturity (giving effect
                  to any applicable grace periods and any extensions thereof)
                  the stated principal amount of any Indebtedness of the Company
                  or any Restricted Subsidiary of the Company, or the
                  acceleration of the final stated maturity of any such
                  Indebtedness (which acceleration is not rescinded, annulled or
                  otherwise cured within 30 days of receipt by the Company or
                  such Restricted Subsidiary of notice of any such acceleration)
                  if the aggregate principal amount of such Indebtedness,
                  together with the principal amount of any other such
                  Indebtedness in default for failure to pay principal at final
                  stated maturity or which has been accelerated (in each case
                  with respect to which the 30-day period described above has
                  elapsed), aggregates $25.0 million or more at any time;
                  provided that if such failure to pay shall be remedied, waived
                  or extended within 30 days of receipt by the Company or such
                  Restricted Subsidiary of notice of such acceleration, then any
                  Default or Event of Default hereunder shall be deemed likewise
                  to be remedied, waived or extended without further action by
                  the Company; or

                  (9)      one or more judgments in an aggregate amount in
                  excess of $25.0 million shall have been rendered against the
                  Company or any of its Restricted Subsidiaries and such
                  judgments remain undischarged, unpaid or unstayed for a period
                  of 60 days after such judgment or judgments become final and
                  non-appealable; provided, however, that the rendering of any
                  such judgment(s) shall not be an Event of Default under this
                  clause (9) unless (i) the Company and its Restricted
                  Subsidiaries which are subject to the order, as of the date of
                  the issuance of such judgment(s), have at least $25.0 million
                  in net assets located in such court's jurisdiction or (ii) a
                  final and non-appealable order enforcing such judgment(s) is
                  entered by a court of competent jurisdiction in a jurisdiction
                  where the Company and its Restricted Subsidiaries subject to
                  the order, as of the date of the entry of such order of
                  enforcement, have at least $25.0 million in net assets located
                  in such jurisdiction; or

                                       34

<PAGE>

                  (10)     any Guarantee of a Significant Subsidiary ceases to
                  be in full force and effect or any Guarantee of a Significant
                  Subsidiary is declared to be null and void and unenforceable
                  or any Guarantee of a Significant Subsidiary is found to be
                  invalid or any Guarantor that is a Significant Subsidiary
                  denies its liability under its Guarantee (other than by reason
                  of release of such Guarantor in accordance with the terms of
                  this Indenture)."

                  (h)      The following is added to clause (4) of Section 501
of the Original Indenture, after the words "such notice is a "Notice of Default"
hereunder" therein:

                  "(except in the case of a default with respect to Section 801
                  hereof, which will constitute an Event of Default with such
                  notice requirement but without such passage of time
                  requirement)"

                  (i)      The following is added to the first paragraph of
Section 801 of the Original Indenture, after the words "The Company shall not"
therein:

                  ", in a single transaction or series of related transactions,"

                  (j)      The following is added to the first paragraph of
Section 801 of the Original Indenture, after the words "convey, transfer or
lease" therein:

                  "or sell or assign or otherwise dispose of (or cause or permit
                  and Restricted Subsidiary of the Company to sell, assign,
                  transfer, lease convey or otherwise dispose of)"

                  (k)      The following is added to clause (1) of Section 801
of the Original Indenture, before the words "in case the Company shall
consolidate" therein:

                  "either (A) the Company shall be the surviving or continuing
                  corporation or (B)"

                  (l)      The following is added to clause (1) of Section 801
of the Original Indenture, after the words "or the person which acquires by"
therein:

                  "sale, assignment"

                  (m)      The following is added to clause (1) of Section 801
of the Original Indenture, after the words "or which leases" therein:

                  "or disposes of in another manner"

                  (n)      The following is added as a new clause (2) to Section
801 of the Original Indenture, and the current clauses (2), (3) and (4) are
renumbered (3), (4) and (5), respectively:

                  "(2)     immediately after giving effect to such transaction
                  and the assumption contemplated by clause (1) above (including
                  giving

                                       35

<PAGE>

                  effect to any Indebtedness and Acquired Indebtedness incurred
                  or anticipated to be incurred in connection with or in respect
                  of such transaction), the Company or such surviving entity, as
                  the case may be, (a) shall have a Consolidated Net Worth equal
                  to or greater than the Consolidated Net Worth of the Company
                  immediately prior to such transaction and (b) shall be able to
                  incur at least $1.00 of additional Indebtedness (other than
                  Permitted Indebtedness) pursuant to paragraph (a) of Section
                  1014 hereof;"

                  (o)      The following is added to clause (2) of Section 801
of the Original Indenture (which pursuant hereto has been renumbered clause
(3)), after the words "at the time of such transaction" therein:

                  "and any Lien granted in connection with or in respect of the
                  transaction"

                  (p)      The following is added to clause (4) of Section 801
of the Original Indenture (which pursuant hereto has been renumbered clause
(5)), after the words "transfer or lease" therein:

                  ", sale, assignment or other disposition"

                  (q)      The following is added to the end of Section 801 of
the Original Indenture, after clause (4) thereof (which pursuant hereto has been
renumbered clause (5)):

                  "For purposes of the foregoing, the transfer (by lease,
                  assignment, sale or otherwise, in a single transaction or
                  series of transactions) of all or substantially all of the
                  properties or assets of one or more Restricted Subsidiaries of
                  the Company the Capital Stock of which constitutes all or
                  substantially all of the properties and assets of the Company
                  shall be deemed to be the transfer of all or substantially all
                  of the properties and assets of the Company.

                  Notwithstanding clauses (1), (2) and (3) of the first
                  paragraph of this Section 801, the Company may merge with an
                  Affiliate that is a Person that has no material assets or
                  liabilities and which was organized solely for the purpose of
                  reorganizing the Company in another jurisdiction.

                  Each Guarantor (other than any Guarantor whose Guarantee is to
                  be released in accordance with the terms of the Guarantee and
                  this Indenture in connection with any transaction complying
                  with the provisions of Section 1015 hereof) will not, and the
                  Company will not cause or permit any Guarantor to, consolidate
                  with or merge with or into any Person other than the Company
                  or any other Guarantor unless:

                                       36

<PAGE>

                           (1)      the entity formed by or surviving any such
                  consolidation or merger (if other than the Guarantor) or to
                  which such sale, lease, conveyance or other disposition shall
                  have been made is a corporation organized and existing under
                  the laws of the United States or any State thereof or the
                  District of Columbia;

                           (2)      such entity assumes by supplemental
                  indenture all of the obligations of the Guarantor on the
                  Guarantee and this Indenture;

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

                           (4)      immediately after giving effect to such
                  transaction and the use of any net proceeds therefrom on a pro
                  forma basis, the Company could satisfy the provisions of
                  clause (2) of the first paragraph of this Section 801.

                  Any merger or consolidation of a Restricted Subsidiary with
                  and into the Company (with the Company being the Surviving
                  Entity) or another Guarantor need only comply with clause (5)
                  of the first paragraph, or clause (1) of the fifth paragraph,
                  as the case may be, of this Section 801."

                  (r)      The following is added to Section 802 of the Original
Indenture, in place of the first occurrence of the words "transfer or lease"
therein:

                  "transfer, sale, lease, conveyance or other disposition"

                  (s)      The following is added to Section 802 of the Original
Indenture, in place of the words ", except in the case of a lease, the
predecessor Person shall be relieved of all obligations and covenants under this
Indenture, the Securities and the Coupons" therein:

                  ";provided, however, that the predecessor Company shall not be
                  relieved from the obligation to pay the principal, Purchase
                  Price or Redemption Price of or interest, if any, on the Notes
                  except in the case of a sale of all of the Company's assets
                  that meets the requirements of Section 801 hereof."

                  (t)      The following is added to the end of the first
paragraph of Section 902 and the word "or" at the end of Section 902(3) is
deleted:

                  "(4)     between the date on which a Change of Control or an
                  Asset Sale giving rise to the Company's obligation to make a
                  Net Proceeds Offer occurs and the date on which the payments
                  are made with respect to the related Change of Control Offer
                  or Net Proceeds Offer, as the case may be, amend, change or
                  modify in

                                       37

<PAGE>

                  any material respect (A) the obligation of the Company to make
                  and consummate a Change of Control Offer in the event of a
                  Change of Control or make and consummate a Net Proceeds Offer
                  with respect to Asset Sales that have been consummated or (B)
                  any of the provisions or definitions with respect thereto;

                  (5)      modify or change any provision of this Indenture or
                  the related definitions affecting the ranking of the Notes or
                  subordination of any Guarantee in a manner which adversely
                  affects the Holders in any material respect; or

                  (6)      release any Guarantor that is a Significant
                  Subsidiary from any of its obligations under its Guarantee or
                  this Indenture otherwise than in accordance with the terms of
                  this Indenture.

                  Notwithstanding anything in this Indenture to the contrary,
                  any amendment to or waiver of Section 1026 hereof or of the
                  related terms of the Capital Call Agreement (to the extent
                  required pursuant to Section 14 thereof) shall require the
                  consent of the holders of not less than a majority of the
                  aggregate principal amount of the outstanding Existing Notes
                  and New Senior Notes, voting as a single class."

                  (u)      The following section is added as a new paragraph to
the end of Section 1004 of the Original Indenture:

                  "So long as not contrary to the then current recommendations
                  of the American Institute of Certified Public Accountants, the
                  year-end financial statements delivered pursuant to Section
                  1010 above shall be accompanied by a written statement of the
                  Company's independent public accountants (who shall be a firm
                  of established national reputation) that in making the
                  examination necessary for certification of such financial
                  statements, nothing has come to their attention that would
                  lead them to believe that the Company has violated any
                  provisions of Article Ten or Article Eight hereof or, if any
                  such violation has occurred, specifying the nature and period
                  of existence thereof, it being understood that such
                  accountants shall not be liable directly or indirectly to any
                  Person for any failure to obtain knowledge of any such
                  violation."

                  (v)      The following sections are added to Article Ten of
the Original Indenture, after Section 1009:

                  "Section 1010.   Reports. Whether or not required by the rules
                  and regulations of the Commission, so long as any Notes are
                  outstanding, the Company will deliver to each Holder, within
                  the time periods specified in the Commission's rule and
                  regulations:

                                       38

<PAGE>

                  (i)      all quarterly and annual financial information that
                  would be required to be contained in a filing with the
                  Commission on Forms 10-Q and 10-K if the Company were required
                  to file such Forms, including a "Management's Discussion and
                  Analysis of Financial Condition and Results of Operations"
                  that describes the financial condition and results of
                  operations of the Company and its consolidated Subsidiaries
                  (including a "Management's Discussion and Analysis of
                  Financial Condition and Results of Operations") and, with
                  respect to the annual information only, a report thereon by
                  the Company's certified independent accountants; and

                  (ii)     all current reports that would be required to be
                  filed with the Commission on Form 8-K if the Company were
                  required to file such reports, in each case within the time
                  periods specified in the Commission's rules and regulations.

                  In addition, following the consummation of the exchange offer
                  of the New Senior Notes pursuant to a registration statement
                  contemplated by the Registration Rights Agreement (as defined
                  in the New Senior Notes Indenture), whether or not required by
                  the rules and regulations of the Commission, the Company will
                  file electronically via the Electronic Data Gathering,
                  Analysis and Retrieval (EDGAR) system or any successor system
                  maintained by the Commission a copy of all such information
                  and reports with the Commission for public availability within
                  the time periods specified in the Commission's rules and
                  regulations (unless the Commission will not accept such a
                  filing) and make such information available to securities
                  analysts and prospective investors upon request. In addition,
                  the Company has agreed that, for so long as any Notes remain
                  outstanding, it will furnish to the Holders and to securities
                  analysts and prospective investors, upon their request, the
                  information required to be delivered pursuant to Rule
                  144A(d)(4) under the Securities Act.

                  Section 1011.     Stay, Extension and Usury Laws. The Company
                  covenants (to the extent that it may lawfully do so) that it
                  shall not at any time insist upon, plead, or in any manner
                  whatsoever claim or take the benefit or advantage of, any
                  stay, extension or usury law wherever enacted, now or at any
                  time hereafter in force, that may affect the covenants or the
                  performance of this Indenture; and the Company (to the extent
                  that it may lawfully do so) hereby expressly waives all
                  benefit or advantage of any such law, and covenants it shall
                  not, by resort to any such law, hinder, delay or impede the
                  execution of any power herein granted to the Trustee, but
                  shall suffer and permit the execution of every such power as
                  though such law has not been enacted.

                                       39

<PAGE>

                  Section 1012.     Limitation on Restricted Payments. The
                  Company will not, and will not cause or permit any of its
                  Restricted Subsidiaries to, directly or indirectly:

                  (1)      declare or pay any dividend or make any distribution
                  (other than dividends or distributions payable in Qualified
                  Capital Stock of the Company) on or in respect of shares of
                  the Company's Capital Stock to holders of such Capital Stock;

                  (2)      purchase, redeem or otherwise acquire or retire for
                  value any Capital Stock of the Company or any warrants, rights
                  or options to purchase or acquire shares of any class of such
                  Capital Stock;

                  (3)      make any principal payment on, purchase, defease,
                  redeem, prepay, decrease or otherwise acquire or retire for
                  value, prior to any scheduled final maturity, scheduled
                  redemption or repayment or scheduled sinking fund payment, any
                  Subordinated Indebtedness (other than intercompany
                  Indebtedness among the Company and/or the Guarantors which
                  Indebtedness was permitted to be incurred pursuant to clause
                  (6) or (7) of the definition of "Permitted Indebtedness"); or

                  (4)      make any Investment (other than Permitted
                  Investments)

                  (each of the foregoing actions set forth in clauses (1), (2),
                  (3) and (4) being referred to as a "Restricted Payment") if at
                  the time of such Restricted Payment or immediately after
                  giving effect thereto,

                  (i)      a Default or an Event of Default shall have occurred
                  and be continuing; or

                  (ii)     the Company is not able to incur at least $1.00 of
                  additional Indebtedness (other than Permitted Indebtedness) in
                  compliance with paragraph (a) of Section 1014 hereof; or

                  (iii)    the aggregate amount of Restricted Payments
                  (including such proposed Restricted Payment) made subsequent
                  to the Issue Date (the amount expended for such purposes, if
                  other than in cash, being the fair market value of such
                  property as determined in good faith by the Board of Directors
                  of the Company) shall exceed the sum of:

                  (v)      50% of the cumulative Consolidated Net Income (or if
                  cumulative Consolidated Net Income shall be a loss, minus 100%
                  of such loss) of the Company earned during the period
                  commencing on and including March 23, 2003 and ending on the
                  last day of the most recent fiscal quarter for which financial

                                       40

<PAGE>

                  information is available to the Company (treating such period
                  as a single accounting period); plus

                  (w)      100% of the aggregate net cash proceeds and the fair
                  market value (as determined in good faith by the Board of
                  Directors of the Company) of any asset or property other than
                  cash received by the Company from any Person (other than a
                  Subsidiary of the Company) as a contribution to capital or
                  from the issuance and sale subsequent to the Issue Date and on
                  or prior to the date such Restricted Payment is made of
                  Qualified Capital Stock of the Company or warrants, options or
                  other rights to acquire Qualified Capital Stock of the Company
                  (but excluding any debt security that is convertible into, or
                  exchanged for, Qualified Capital Stock until such debt
                  security has been converted into, or exchanged for, Qualified
                  Capital Stock); plus

                  (x)      without duplication of any amounts included in clause
                  (iii)(w) above, 100% of the aggregate net cash proceeds of any
                  equity contribution received by the Company subsequent to the
                  Issue Date and on or prior to the date such Restricted Payment
                  is made from a holder of the Company's Capital Stock
                  (excluding, in the case of clauses (iii)(w) and (x), any net
                  cash proceeds from an Equity Offering to the extent used to
                  redeem the New Senior Notes); plus

                  (y)      without duplication, the sum of:

                  (1)      the aggregate amount returned in cash on or with
                  respect to Investments (other than Permitted Investments) made
                  subsequent to the Issue Date whether through interest
                  payments, principal payments, dividends or other distributions
                  or payments;

                  (2)      the net cash proceeds and the fair market value (as
                  determined in good faith by the Board of Directors of the
                  Company) of any asset or property other than cash received by
                  the Company or any of its Restricted Subsidiaries from the
                  disposition of all or any portion of such Investments (other
                  than to a Subsidiary of the Company); and

                  (3)      upon redesignation of an Unrestricted Subsidiary as a
                  Restricted Subsidiary, the fair market value of such
                  Subsidiary;

                  provided, however, that the amounts included in clauses (1),
                  (2) and (3) above shall not be included in "Consolidated Net
                  Income" for purposes of clause (iii)(v) above; plus

                  (z)      $35.0 million.

                                       41

<PAGE>

                  Notwithstanding the foregoing, the provisions set forth in the
                  immediately preceding paragraph do not prohibit:

                           (1)      the payment of any dividend within 60 days
                  after the date of declaration of such dividend if the dividend
                  would have been permitted on the date of declaration;

                           (2)      the acquisition of any shares of Capital
                  Stock of the Company either (i) solely in exchange for shares
                  of Qualified Capital Stock of the Company or (ii) through the
                  application of net proceeds of a substantially concurrent sale
                  for cash (other than to a Subsidiary of the Company) of shares
                  of Qualified Capital Stock of the Company;

                           (3)      the repurchase, redemption or other payment
                  or an acquisition of any Subordinated Indebtedness either (i)
                  solely in exchange for shares of Qualified Capital Stock of
                  the Company, or (ii) through the application of net proceeds
                  of a substantially concurrent sale (other than to a Subsidiary
                  of the Company) of (a) shares of Qualified Capital Stock of
                  the Company for cash or (b) Refinancing Indebtedness;

                           (4)      so long as no Default or Event of Default
                  shall have occurred and be continuing, dividends or
                  distributions to Holdings to permit it to repurchase Common
                  Stock of Holdings or purchases by the Company of Common Stock
                  of Holdings from employees of Holdings or the Company or any
                  of its Subsidiaries or their authorized representatives upon
                  the death, disability or termination of employment of such
                  employees, in an aggregate amount not to exceed $2.0 million
                  in any calendar year;

                           (5)      loans, advances, dividends or distributions
                  by the Company to Holdings not to exceed an amount necessary
                  to permit Holdings to pay any costs (including, without
                  limitation, all professional fees and expenses) incurred to
                  comply with its reporting obligations under federal or state
                  laws in connection with the Credit Agreement or any other
                  agreement or instrument relating to Indebtedness of Holdings,
                  the Company or any Restricted Subsidiary, or otherwise
                  incurred in connection with compliance with applicable laws or
                  applicable rules of any governmental, regulatory or
                  self-regulatory body or stock exchange, including in respect
                  of reports filed with respect to the Securities Act, the
                  Exchange Act or the respective rules and regulations
                  promulgated thereunder and, for so long as Holdings' primary
                  business is to hold the Capital Stock of the Company, all
                  other costs incurred by Holdings relating to Holdings'
                  ownership of the Capital Stock of the Company;

                                       42

<PAGE>

                           (6)      payments by the Company to Holdings to pay
                  (x) any taxes, charges or assessments (other than federal,
                  state and local income taxes and withholding imposed on
                  payments made by Holdings) required to be paid by Holdings by
                  virtue of its being incorporated or having capital stock
                  outstanding (but not by virtue of owning stock or other equity
                  interests of any corporation other than the Company or any of
                  its Subsidiaries), or being a holding company parent of the
                  Company or receiving actual or, in the case of Subsidiaries of
                  the Company, deemed dividends from or other distributions in
                  respect of the stock of the Company or any of its
                  Subsidiaries, or having guaranteed any obligations of the
                  Company or any Subsidiary, or having made any payment in
                  respect of any of the items for which the Company is permitted
                  to make payments to Holdings pursuant to this covenant or (y)
                  any other federal, state, foreign, provincial or local taxes
                  for which Holdings is liable up to an amount not to exceed
                  with respect to any such taxes the total amount of such taxes
                  which the Company would have been required to pay on a
                  separate company basis or on a consolidated basis if the
                  Company had filed a consolidated return on behalf of an
                  affiliated group (as defined in Section 1504 of the Internal
                  Revenue Code of 1986, as amended, or an analogous provision of
                  state, local or foreign law) of which it were the common
                  parent, or with respect to state and local taxes, on a
                  combined basis if the Company had filed a combined return on
                  behalf of an affiliated group of which it were a member;

                           (7)      payments made to purchase, redeem, defease
                  or otherwise acquire or retire for value any Subordinated
                  Indebtedness of the Company pursuant to provisions requiring
                  the Company to offer to purchase, redeem, defease or otherwise
                  acquire or retire for value such Subordinated Indebtedness
                  upon the occurrence of a "change of control" as defined in the
                  agreements or instruments governing such Subordinated
                  Indebtedness; provided, however, that the Company has made a
                  Change of Control Offer and has purchased all Notes tendered
                  in connection with such Change of Control Offer;

                           (8)      repurchase of Capital Stock deemed to occur
                  upon exercise of stock options if such Capital Stock
                  represents a portion of the exercise price of those options;

                           (9)      payments to the Dole Food Company Inc.
                  Excess Savings Plan or any trust established with respect to
                  the Dole Food Company Inc. Excess Savings Plan; and

                           (10)     payments made to the holders of Capital
                  Stock in any Person that is merged or consolidated with or
                  into the

                                       43

<PAGE>

                  Company or any Restricted Subsidiary pursuant to any merger,
                  consolidation or sale of assets effected in accordance with
                  Section 801 hereof; provided, however, that no such payment
                  may be made pursuant to this clause (10) unless, after giving
                  pro forma effect to such transaction, and the incurrence of
                  any Indebtedness in connection with such transaction and the
                  use of the proceeds from such transaction, the Company would
                  be able to incur $1.00 of additional Indebtedness under
                  paragraph (a) of Section 1014 hereof.

                  In determining the aggregate amount of Restricted Payments
                  made subsequent to the Issue Date in accordance with clause
                  (iii) of the second preceding paragraph, amounts expended
                  pursuant to clauses (1), (2)(ii), (3)(ii)(a) and (4) of the
                  immediately preceding paragraph shall be included in such
                  calculation.

                  Section 1013.     Limitation on Dividend and Other Payment
                  Restrictions Affecting Restricted Subsidiaries. The Company
                  will not, and will not cause or permit any of its Restricted
                  Subsidiaries to, directly or indirectly, create or otherwise
                  cause or permit to exist or become effective any consensual
                  encumbrance or restriction on the ability of any Restricted
                  Subsidiary of the Company to:

                  (1)      pay dividends or make any other distributions on or
                  in respect of its Capital Stock;

                  (2)      make loans or advances to the Company or any other
                  Restricted Subsidiary or to pay any Indebtedness or other
                  obligation owed to the Company or any other Restricted
                  Subsidiary of the Company; or

                  (3)      transfer any of its property or assets to the Company
                  or any other Restricted Subsidiary of the Company,

                  except in each case for such encumbrances or restrictions
                  existing under or by reason of:

                  (a)      applicable law or any rule, regulation or order;

                  (b)      the New Senior Notes Indenture, this Indenture, the
                  New Senior Notes and the related guarantees, and the Existing
                  Notes and Guarantees;

                  (c)      customary non-assignment provisions or restrictions
                  on cash or other deposits and net worth covenants contained in
                  any contract or any lease governing a leasehold interest of
                  any Restricted Subsidiary of the Company;

                                       44

<PAGE>

                  (d)      any agreement or instrument governing Acquired
                  Indebtedness, which encumbrance or restriction is not
                  applicable to any Person, or the properties or assets of any
                  Person, other than the Person or the properties or assets of
                  the Person so acquired;

                  (e)      agreements or instruments existing on the Issue Date
                  to the extent and in the manner such agreements are in effect
                  on the Issue Date, including this Indenture;

                  (f)      the Credit Agreement;

                  (g)      an agreement governing Guarantor Senior Debt
                  permitted to be incurred under this Indenture (other than
                  Guarantor Senior Debt under, or with respect to, the Credit
                  Agreement); provided that, with respect to any agreement
                  governing such Guarantor Senior Debt, the provisions relating
                  to such encumbrance or restriction are no less favorable to
                  the Company in any material respect as determined by the Board
                  of Directors of the Company in its reasonable and good faith
                  judgment than the provisions contained in the Credit Agreement
                  as in effect on the Issue Date;

                  (h)      restrictions on the transfer of assets subject to any
                  Lien permitted under this Indenture imposed by the holder of
                  such Lien;

                  (i)      restrictions imposed by any agreement to sell assets
                  or Capital Stock permitted under this Indenture to any Person
                  pending the closing of such sale;

                  (j)      customary provisions in joint venture agreements and
                  other similar agreements (in each case relating solely to the
                  respective joint venture or similar entity or the equity
                  interests therein) entered into in the ordinary course of
                  business;

                  (k)      other Indebtedness of Restricted Subsidiaries that
                  are not Guarantors permitted to be incurred pursuant to an
                  agreement entered into subsequent to the Issue Date in
                  accordance with Section 1014 hereof; provided, however, that
                  the Board of Directors of the Company determines in good faith
                  at the time such dividend and other payment restrictions are
                  created that such dividend and other payment restrictions do
                  not materially adversely affect the Company's ability to pay
                  principal of, and interest on, the Notes;

                  (l)      purchase money obligations (including any Capitalized
                  Lease Obligations) relating to property acquired in the
                  ordinary course of business;

                                       45

<PAGE>

                  (m)      Liens securing Indebtedness otherwise permitted to be
                  incurred under Section 1008 hereof (including clauses (1)
                  through (10) of Section 1008 hereof) that limit the right of
                  the debtor to dispose of the assets subject to such Liens; and

                  (n)      an agreement governing Indebtedness incurred to
                  Refinance the Indebtedness issued, assumed or incurred
                  pursuant to an agreement referred to in clauses (b), (d), (e)
                  and (g) through (m) above; provided, however, that the
                  provisions relating to such encumbrance or restriction
                  contained in any such Indebtedness are not in the aggregate
                  materially less favorable to the Company as determined by the
                  Board of Directors of the Company in their reasonable and good
                  faith judgment than the provisions relating to such
                  encumbrance or restriction contained in agreements referred to
                  in such clauses (b), (d), (e) and (g) through (m).

                  Section 1014.     Limitation on Incurrence of Additional
                  Indebtedness.

                  (a)      The Company will not, and will not permit any of its
                  Restricted Subsidiaries to, directly or indirectly, create,
                  incur, assume, guarantee, acquire, become liable, contingently
                  or otherwise, with respect to, or otherwise become responsible
                  for payment of (collectively, "incur") any Indebtedness (other
                  than Permitted Indebtedness); provided, however, that if no
                  Default or Event of Default shall have occurred and be
                  continuing at the time of or as a consequence of the
                  incurrence of any such Indebtedness, the Company or any of its
                  Restricted Subsidiaries that is or, upon such incurrence,
                  becomes a Guarantor may incur Indebtedness (including, without
                  limitation, Acquired Indebtedness) and any Restricted
                  Subsidiary of the Company that is not or will not, upon such
                  incurrence, become a Guarantor may incur Acquired
                  Indebtedness, in each case if on the date of the incurrence of
                  such Indebtedness, after giving effect to the incurrence
                  thereof, the Consolidated Fixed Charge Coverage Ratio of the
                  Company is greater than 2.0 to 1.0.

                  (b)      Notwithstanding the preceding paragraph, the Company
                  will not incur any Indebtedness if such Indebtedness is by its
                  terms subordinate or junior in right of payment to any other
                  Indebtedness of the Company, unless such Indebtedness is also
                  by its terms made subordinate or junior in right of payment to
                  the Notes to the same extent and in the same manner as such
                  Indebtedness is subordinated to other Indebtedness of the
                  Company.

                                       46

<PAGE>

                  Section 1015.     Limitation on Asset Sales. (A) The
                  Company will not, and will not permit any of its Restricted
                  Subsidiaries to, consummate an Asset Sale unless:

                  (1)      the Company or the applicable Restricted Subsidiary,
                  as the case may be, receives consideration at the time of such
                  Asset Sale at least equal to the fair market value of the
                  assets sold or otherwise disposed of (as determined in good
                  faith by the Company's Board of Directors);

                  (2)      at least 75% of the consideration received by the
                  Company or the Restricted Subsidiary, as the case may be, from
                  such Asset Sale shall be in the form of cash, Cash Equivalents
                  or Replacement Assets and shall be received at the time of
                  such disposition; provided that:

                  (a)      the amount of any liabilities (as shown on the
                  Company's or such Restricted Subsidiary's most recent balance
                  sheet) of the Company or any such Restricted Subsidiary (other
                  than liabilities that are by their terms subordinated in right
                  of payment to the Notes or any Guarantee of a Guarantor) that
                  are assumed by the transferee of any such assets, and

                  (b)      the fair market value of any securities or other
                  assets received by the Company or any such Restricted
                  Subsidiary in exchange for any such assets that are converted
                  into cash within 180 days after such Asset Sale,

                  shall be deemed to be cash for purposes of this provision; and

                  (3)      upon the consummation of an Asset Sale, the Company
                  shall apply, or cause such Restricted Subsidiary to apply, the
                  Net Cash Proceeds relating to such Asset Sale within 365 days
                  of receipt thereof (provided that if the Company or such
                  Restricted Subsidiary, as the case may be, has entered into an
                  agreement in definitive form to so apply such Net Cash
                  Proceeds, the transaction contemplated by such agreement must
                  be consummated within the later of such 365 day period and 120
                  days from the date of the execution of such agreement) either:

                  (a)      to repay any Obligations under the Credit Agreement
                  or any Guarantor Senior Debt and, in the case of any such
                  Indebtedness under a revolving credit facility, effect a
                  permanent reduction in the availability under such revolving
                  credit facility;

                  (b)      to make an investment in properties and assets that
                  replace the properties and assets that were the subject of
                  such Asset Sale or in properties and assets (including Capital
                  Stock) that will be used

                                       47

<PAGE>

                  in the business of the Company and its Restricted Subsidiaries
                  as existing on the Issue Date or in businesses reasonably
                  related thereto ("Replacement Assets"); and/or

                  (c)      a combination of repayment and investment permitted
                  by the foregoing clauses (3)(a) and (3)(b).

                  (B)      Pending the final application of such Net Cash
                  Proceeds, the Company may temporarily reduce borrowings under
                  the Credit Agreement or any other revolving credit facility,
                  if any. On the 366th day after an Asset Sale or such earlier
                  date, if any, as the Board of Directors of the Company or of
                  such Restricted Subsidiary determines not to apply the Net
                  Cash Proceeds relating to such Asset Sale as set forth in
                  clauses (3)(a), (3)(b) and (3)(c) of paragraph (A) above or,
                  in the event that a definitive agreement has been entered into
                  prior to such 366th day pursuant to which the Net Cash
                  Proceeds are to be applied, on the later of the 366th day and
                  the 121st day after the execution of such agreement (each, a
                  "Net Proceeds Offer Trigger Date"), such aggregate amount of
                  Net Cash Proceeds which have not been applied on or before
                  such Net Proceeds Offer Trigger Date as permitted in clauses
                  (3)(a), (3)(b) and (3)(c) of the preceding paragraph (each a
                  "Net Proceeds Offer Amount") shall be applied by the Company
                  or such Restricted Subsidiary to make an offer to purchase
                  (the "Net Proceeds Offer") to all Holders and, to the extent
                  required by the terms of any Pari Passu Debt, an offer to
                  purchase to all holders of such Pari Passu Debt, on a date
                  (the "Net Proceeds Offer Payment Date") not less than 30 nor
                  more than 60 days following the applicable Net Proceeds Offer
                  Trigger Date, from all Holders (and holders of any such Pari
                  Passu Debt) on a pro rata basis, that amount of Notes (and
                  Pari Passu Debt) equal to the Net Proceeds Offer Amount at a
                  price equal to 100% of the principal amount of the Notes (and
                  Pari Passu Debt) to be purchased, plus accrued and unpaid
                  interest thereon, if any, to the date of purchase.

                  (C)      If at any time any non-cash consideration received by
                  the Company or any Restricted Subsidiary of the Company, as
                  the case may be, in connection with any Asset Sale is
                  converted into or sold or otherwise disposed of for cash
                  (other than interest received with respect to any such
                  non-cash consideration), then such conversion or disposition
                  shall be deemed to constitute an Asset Sale hereunder as of
                  the date of such conversion or disposition and the Net Cash
                  Proceeds thereof shall be applied in accordance with this
                  Section 1015.

                  (D)      The Company may defer the Net Proceeds Offer until
                  there is an aggregate unutilized Net Proceeds Offer Amount
                  equal to or

                                       48

<PAGE>

                  in excess of $15.0 million resulting from one or more Asset
                  Sales (at which time the entire unutilized Net Proceeds Offer
                  Amount, and not just the amount in excess of $15.0 million,
                  shall be applied as required pursuant to this Section 1015).

                  (E)      In the event of the transfer of substantially all
                  (but not all) of the property and assets of the Company and
                  its Restricted Subsidiaries as an entirety to a Person in a
                  transaction permitted under Section 801, which transaction
                  does not constitute a Change of Control, the successor
                  corporation shall be deemed to have sold the properties and
                  assets of the Company and its Restricted Subsidiaries not so
                  transferred for the purposes of this covenant, and shall
                  comply with the provisions of this covenant with respect to
                  such deemed sale as if it were an Asset Sale. In addition, the
                  fair market value of such properties and assets of the Company
                  or its Restricted Subsidiaries deemed to be sold shall be
                  deemed to be Net Cash Proceeds for purposes of this Section
                  1015.

                  (F)      If any Net Cash Proceeds remain after the
                  consummation of any Net Proceeds Offer, the Company may use
                  such Net Cash Proceeds for any purpose not otherwise
                  prohibited by this Indenture without regard to this Section
                  1015. Upon completion of each Net Proceeds Offer, the Net
                  Proceeds Offer Amount will be reset to zero.

                  (G)      In the event the Company or any of its Restricted
                  Subsidiaries consummate a single Asset Sale for which the
                  Company or its Restricted Subsidiaries receive aggregate
                  consideration at the time of such Asset Sale in excess of
                  $100.0 million, the Company or such Restricted Subsidiary, as
                  the case may be, shall, prior to the consummation thereof,
                  obtain a favorable opinion as to the fairness of such Asset
                  Sale to the Company or the relevant Restricted Subsidiary, as
                  the case may be, from a financial point of view, from an
                  Independent Financial Advisor and file the same with the
                  Trustee.

                  (H)      Notwithstanding paragraphs (A) and (B) of this
                  Section 1015, the Company and its Restricted Subsidiaries will
                  be permitted to enter into and consummate an Asset Swap
                  without complying with such paragraphs to the extent that:

                           (1)      at the time of entering into such Asset Swap
                  or immediately after giving effect to such Asset Swap, no
                  Default or Event of Default shall have occurred or be
                  continuing or would occur as a consequence thereof, and

                                       49

<PAGE>

                           (2)      in the event that such Asset Swap involves
                  an aggregate amount in excess of $10.0 million, a majority of
                  the members of the Board of Directors of the Company shall
                  have approved the terms of such Asset Swap and determined that
                  the consideration received in such Asset Swap is at least
                  equal to the fair market value of the assets disposed of in
                  such Asset Swap.

                  (I)      The Company will comply with the requirements of Rule
                  14e-1 under the Exchange Act and any other securities laws and
                  regulations thereunder to the extent such laws and regulations
                  are applicable in connection with the repurchase of Notes
                  pursuant to a Net Proceeds Offer. To the extent that the
                  provisions of any securities laws or regulations conflict with
                  this Section 1015, the Company shall comply with the
                  applicable securities laws and regulations and shall not be
                  deemed to have breached its obligations under this Section
                  1015 by virtue thereof.

                  Section 1016.     Limitations on Transactions with Affiliates.
                  The Company will not, and will not permit any of its
                  Restricted Subsidiaries to, directly or indirectly, enter into
                  or permit to exist any transaction or series of related
                  transactions (including, without limitation, the purchase,
                  sale, lease or exchange of any property or the rendering of
                  any service) with, or for the benefit of, any of its
                  Affiliates (each an "Affiliate Transaction"), other than (x)
                  Affiliate Transactions permitted under the third paragraph
                  below or (y) Affiliate Transactions on terms that are no less
                  favorable than those that might reasonably have been obtained
                  in a comparable transaction at such time on an arm's-length
                  basis from a Person that is not an Affiliate of the Company or
                  such Restricted Subsidiary.

                  All Affiliate Transactions (and each series of related
                  Affiliate Transactions which are similar or part of a common
                  plan) involving aggregate payments with a fair market value in
                  excess of $7.5 million shall be approved by the Board of
                  Directors of the Company or such Restricted Subsidiary, as the
                  case may be, such approval to be evidenced by a Board
                  Resolution stating that such Board of Directors has determined
                  that such transaction complies with the foregoing provisions.
                  If the Company or any Restricted Subsidiary of the Company
                  enters into an Affiliate Transaction (or a series of related
                  Affiliate Transactions related to a common plan) that involves
                  an aggregate fair market value of more than $20.0 million, the
                  Company or such Restricted Subsidiary, as the case may be,
                  shall, prior to the consummation thereof, obtain a favorable
                  opinion as to the fairness of such transaction or series of
                  related transactions to the Company or the relevant Restricted
                  Subsidiary, as the case may be, from a financial point of
                  view,

                                       50

<PAGE>

                  from an Independent Financial Advisor and file the same with
                  the Trustee.

                  The restrictions set forth in this Section 1016 shall not
                  apply to:

                  (1)      reasonable fees and compensation paid to and
                  indemnity provided on behalf of, officers, directors,
                  employees or consultants of the Company or any Restricted
                  Subsidiary of the Company as determined in good faith by the
                  Company's Board of Directors or senior management;

                  (2)      transactions exclusively between or among the Company
                  and any of its Restricted Subsidiaries or exclusively between
                  or among such Restricted Subsidiaries, provided such
                  transactions are not otherwise prohibited by this Indenture;

                  (3)      any agreement, or any arrangement the terms of which
                  have been disclosed prior to the Issue Date in the Final
                  Memorandum, as in effect as of the Issue Date or any amendment
                  or replacement agreement thereto or any transaction
                  contemplated thereby (including pursuant to any amendment or
                  replacement agreement thereto) so long as any such amendment
                  or replacement agreement taken as a whole is not materially
                  more disadvantageous to the Holders than the original
                  agreement as in effect on the Issue Date;

                  (4)      payments and Investments permitted by this Indenture;

                  (5)      the payment of fees and expenses incurred in
                  connection with the consummation of the transactions being
                  consummated on the Issue Date;

                  (6)      any issuance of securities, or other payments, awards
                  or grants in cash, securities or otherwise (other than
                  issuances, payments, awards or grants to David H. Murdock)
                  pursuant to, or the funding of, employment arrangements,
                  employee stock options and employee stock ownership plans
                  approved by the applicable Board of Directors;

                  (7)      loans or advances to employees in the ordinary course
                  of business of the Company or any of its Restricted
                  Subsidiaries consistent with the past practice;

                  (8)      transactions with customers, clients, vendors,
                  suppliers or other purchasers or sellers of goods or services,
                  in each case in the ordinary course of business (including,
                  without limitation, pursuant to joint venture agreements) and
                  otherwise in compliance with the terms of this Indenture;

                                       51

<PAGE>

                  (9)      any transaction on arm's-length terms with any
                  non-Affiliate that becomes an Affiliate as a result of such
                  transaction;

                  (10)     purchases and sales of product and raw materials,
                  insurance arrangements and payments, all of the foregoing in
                  the ordinary course of business consistent with past practice
                  or as may be necessary to accommodate legal, regulatory or
                  other changes in the business of the Company and its
                  Restricted Subsidiaries;

                  (11)     employment agreements and similar arrangements with
                  employees and independent contractors other than David H.
                  Murdock;

                  (12)     the issuance and sale of Qualified Capital Stock; and

                  (13)     payments made pursuant to the following conditions:
                  if the Company is to file consolidated federal income tax
                  returns with Holdings or combined or unitary state income tax
                  returns with Holdings, the Company may enter into a tax
                  sharing agreement with Holdings and may pay to Holdings
                  amounts when due and payable pursuant to such tax sharing
                  agreement in respect of amounts of tax due with respect to
                  such consolidated, combined or unitary returns and any
                  additional taxes due from time to time as a result of any
                  audit thereof, as the case may be, in each case in an amount
                  not to exceed the amount of tax that the Company would have
                  been obligated to pay to the appropriate taxing authority if
                  the Company and its Subsidiaries had filed a hypothetical
                  separate consolidated, combined or unitary return for the then
                  current year and all prior years ending after the Issue Date.

                  Section 1017.     Continued Existence. Subject to Article
                  Eight hereof, each of the Company and the Guarantors shall do
                  or cause to be done all things necessary to preserve and keep
                  in full force and effect (i) its corporate or other existence
                  in accordance with the organizational documents (as the same
                  may be amended from time to time) of the Company or such
                  Guarantor and (ii) the material rights (charter and
                  statutory), licenses and franchises of the Company or such
                  Guarantor, except to the extent that the applicable Board of
                  Directors determines in good faith that the preservation of
                  such right, license or franchise is no longer necessary or
                  desirable in the conduct of the business of the Company or
                  such Guarantor and that the loss thereof is not
                  disadvantageous in any material respect to the Holders.

                  Section 1018.     Insurance Matters. The Company shall provide
                  or cause to be provided, for itself and each of its
                  Subsidiaries, insurance (including appropriate self-insurance)
                  against loss or

                                       52

<PAGE>

                  damage of the kinds that, in the reasonable, good faith
                  opinion of the Company, are adequate and appropriate for the
                  conduct of the business of the Company and its Subsidiaries in
                  a prudent manner, with reputable insurers or with the
                  government of the United States of America or an agency or
                  instrumentality thereof, in such amounts, with such
                  deductibles, and by such methods as shall be either (i)
                  consistent with past practices of the Company or the
                  applicable Subsidiary or (ii) customary, in the reasonable,
                  good faith opinion of the Company, for corporations similarly
                  situated in the industry, unless the failure to provide such
                  insurance (together with all other such failures) would not
                  have a material adverse effect on the financial condition or
                  results of operations of the Company and its Subsidiaries,
                  taken as a whole.

                  Section 1019.     Offer to Repurchase upon Change of Control.
                  Upon the occurrence of a Change of Control, each Holder of
                  Notes shall have the right to require the Company to
                  repurchase all or any part (equal to $1,000 or an integral
                  multiple thereof) of such Holder's Notes (a "Change of Control
                  Offer") at a Purchase Price in cash equal to 101% of the
                  aggregate principal amount thereof, together with accrued and
                  unpaid interest, if any, thereon to the Purchase Date. The
                  Change of Control Offer shall be made in compliance with the
                  applicable procedures set forth in Article Eleven hereof and
                  shall include all instructions and materials necessary to
                  enable Holders to tender their Notes.

                  The Company will not be required to make a Change of Control
                  Offer upon a Change of Control if a third party makes the
                  Change of Control Offer in the manner, at the times and
                  otherwise in compliance with the requirements set forth in
                  this Indenture applicable to a Change of Control Offer made by
                  the Company and purchases all Notes validly tendered and not
                  withdrawn under such Change of Control Offer.

                  The Company will comply with the requirements of Rule 14e-1
                  under the Exchange Act and any other securities laws and
                  regulations to the extent such laws and regulations are
                  applicable in connection with the repurchase of Notes pursuant
                  to a Change of Control Offer. To the extent that the
                  provisions of any securities laws or regulations conflict with
                  this Section 1019, the Company shall comply with the
                  applicable securities laws and regulations and shall not be
                  deemed to have breached its obligations under this Section
                  1019 by virtue hereof.

                  Section 1020.     Additional Subsidiary Guarantees. If the
                  Company or any of its Restricted Subsidiaries transfers or
                  causes to be transferred, in one transaction or a series of
                  related transactions,

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                  any property to any Domestic Restricted Subsidiary that is a
                  Wholly Owned Restricted Subsidiary and that is not a
                  Guarantor, or if the Company or any of its Restricted
                  Subsidiaries shall organize, acquire or otherwise invest in
                  another Domestic Restricted Subsidiary that is a Wholly Owned
                  Restricted Subsidiary, in either case, after giving effect to
                  such transfer or other such event, having total assets with a
                  book value in excess of $2.5 million, then such transferee or
                  acquired or other Restricted Subsidiary shall, within 15
                  Business Days of such organization, acquisition or investment:

                  (1)      execute and deliver to the Trustee a supplemental
                  indenture in form reasonably satisfactory to the Trustee
                  pursuant to which such Restricted Subsidiary shall
                  unconditionally guarantee on a senior subordinated basis all
                  of the Company's obligations under the Notes and this
                  Indenture on the terms set forth in this Indenture (provided
                  that such Guarantee shall be limited as necessary to prevent
                  such Guarantee from constituting a fraudulent conveyance or
                  fraudulent transfer under applicable law); and

                  (2)      deliver to the Trustee an opinion of counsel that
                  such supplemental indenture has been duly authorized, executed
                  and delivered by such Restricted Subsidiary and constitutes a
                  legal, valid, binding and enforceable obligation of such
                  Restricted Subsidiary.

                  Thereafter, such Restricted Subsidiary shall be a Guarantor
                  for all purposes of this Indenture (until released from its
                  Guarantee in accordance with the terms of this Indenture).

                  Section 1021.     Conduct of Business. The Company and its
                  Restricted Subsidiaries will not engage in any businesses
                  which are not the same, similar, ancillary or reasonably
                  related to the businesses in which the Company and its
                  Restricted Subsidiaries are currently engaged on the Issue
                  Date or which are contemplated in the Final Memorandum except
                  to such extent as is not material to the Company and its
                  Restricted Subsidiaries taken as a whole, or with respect to
                  businesses acquired by the Company or its Restricted
                  Subsidiaries that are intended to be disposed of within a
                  reasonable time after the acquisition thereof.

                  Section 1022.     Payments for Consent. The Company will not,
                  and will not permit any of its Restricted Subsidiaries to,
                  directly or indirectly, pay or cause to be paid any
                  consideration to or for the benefit of any Holder of Notes for
                  or as an inducement to any consent, waiver or amendment of any
                  of the terms or provisions of this Indenture or the Notes
                  unless such consideration is offered to

                                       54

<PAGE>

                  be paid and is paid to all Holders of the Notes that consent,
                  waive or agree to amend in the time frame set forth in the
                  solicitation documents relating to such consent, waiver or
                  agreement.

                  Section 1023.     Limitation on Issuance of Preferred Stock of
                  Restricted Subsidiaries. The Company will not permit any of
                  its Restricted Subsidiaries that are not Guarantors to issue
                  any Preferred Stock (other than to the Company or to a Wholly
                  Owned Restricted Subsidiary of the Company) or permit any
                  Person (other than the Company or a Wholly Owned Restricted
                  Subsidiary of the Company) to own any Preferred Stock of any
                  Restricted Subsidiary of the Company that is not a Guarantor.

                  Section 1024.     Prohibition on Incurrence of Senior
                  Subordinated Guarantees. The Company will not permit any
                  Restricted Subsidiary that is a Guarantor to incur or suffer
                  to exist Indebtedness that is senior in right of payment to
                  such Guarantor's Guarantee and subordinate in right of payment
                  to any other Indebtedness of such Guarantor.

                  Section 1025.     Limitation of Guarantees by Restricted
                  Subsidiaries. The Company will not permit any Restricted
                  Subsidiary that is not a Guarantor, directly or indirectly, by
                  way of the pledge of any intercompany note or otherwise, to
                  assume, guarantee or in any other manner become liable with
                  respect to any Indebtedness of the Company or any other
                  Restricted Subsidiary of the Company (other than: (1)
                  Indebtedness or other obligations under the Credit Agreement;
                  (2) Permitted Indebtedness of a Restricted Subsidiary of the
                  Company; (3) Indebtedness under Currency Agreements in
                  reliance on clause (5) of the definition of Permitted
                  Indebtedness; or (4) Interest Swap Obligations incurred in
                  reliance on clause (4) of the definition of Permitted
                  Indebtedness), unless, in any such case, such Restricted
                  Subsidiary executes and delivers a supplemental indenture to
                  this Indenture providing a senior subordinated guarantee of
                  payment of the Notes by such Restricted Subsidiary.
                  Notwithstanding the foregoing, any such Guarantee by a
                  Restricted Subsidiary of the Notes shall provide by its terms
                  that it shall be automatically and unconditionally released
                  and discharged, without any further action required on the
                  part of the Trustee or any Holder, upon: the unconditional
                  release of such Restricted Subsidiary from its liability in
                  respect of the Indebtedness in connection with which such
                  Guarantee was executed and delivered pursuant to this
                  paragraph; if the Company designates any Restricted Subsidiary
                  that is a Guarantor to be an Unrestricted Subsidiary in
                  accordance with the applicable provisions of this Indenture;
                  or any sale or other disposition (by merger or otherwise) to
                  any Person which is not a Restricted

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<PAGE>

                  Subsidiary of the Company of all of the Company's Capital
                  Stock in, or all or substantially all of the assets of, such
                  Restricted Subsidiary; provided that (a) such sale or
                  disposition of such Capital Stock or assets is otherwise in
                  compliance with the terms of this Indenture and (b) such
                  assumption, guarantee or other liability of such Restricted
                  Subsidiary has been released by the holders of the other
                  Indebtedness so guaranteed.

                  Section 1026.     Capital Call Agreement. The Company shall
                  have received the net cash proceeds from the equity
                  contribution or purchase of its Capital Stock, as the case may
                  be, to the extent required by, and upon the terms of, Section
                  2 (only to the extent such Section relates to the consolidated
                  leverage ratio (as defined therein) requirement with respect
                  to the four full fiscal quarter period commencing on March 23,
                  2003) of the Capital Call Agreement as in effect on the Issue
                  Date and shall use such net cash proceeds to repay
                  Indebtedness and/or purchase subordinated participations in
                  obligations under the Credit Agreement, in each case, in
                  compliance with the Capital Call Agreement as in effect on the
                  Issue Date."

                  (w)      The following paragraph is added to Section 1102 of
the Original Indenture, at the end of such section:

                  "If the Company is required to offer to repurchase Notes
                  pursuant to the provisions of Section 4.15 or 4.19 hereof, it
                  shall notify the Trustee in writing, at least 30 days but not
                  more than 60 days before the Purchase Date, of the Section of
                  this Indenture pursuant to which the repurchase shall occur,
                  the Purchase Date, the principal amount of Notes required to
                  be repurchased and the Purchase Price and shall furnish to the
                  Trustee an Officers' Certificate to the effect that (a) the
                  Company is required to make or has made a Net Proceeds Offer
                  or a Change of Control Offer, as the case may be, and (b) the
                  conditions set forth in Section 4.15 or 4.19 hereof, as the
                  case may be, have been satisfied."

                  (x)      The following Articles Fifteen and Sixteen are added
to the Original Indenture, after Article Fourteen thereof:

                  "ARTICLE FIFTEEN.  SUBORDINATION OF THE GUARANTEES

                  Section 1501.     Guarantees Subordinated to Guarantor Senior
                  Debt. Anything herein to the contrary notwithstanding, each of
                  the Company and the Guarantors, for itself and its successors,
                  and each Holder, by his or her acceptance of Guarantees,
                  agrees that the payment by the Guarantors of all Obligations
                  with respect to

                                       56

<PAGE>

                  the Guarantees is subordinated in right of payment to the
                  prior payment in full in cash or Cash Equivalents of all
                  Obligations on Guarantor Senior Debt (including all
                  Obligations with respect to the Credit Agreement).
                  Notwithstanding the foregoing, payments and distributions made
                  relating to the Guarantees pursuant to the trust described
                  under Article Thirteen hereof shall not be so subordinated in
                  right of payment so long as the payments into the trust were
                  made in accordance with the requirements described under
                  Article Thirteen hereof and did not violate the subordination
                  provisions when they were made.

                  This Article Fifteen shall constitute a continuing offer to
                  all Persons who become holders of, or continue to hold,
                  Guarantor Senior Debt, and such provisions are made for the
                  benefit of the holders of Guarantor Senior Debt and such
                  holders are made obligees hereunder and any one or more of
                  them may enforce such provisions. Each such holder shall be
                  deemed to have acquired such Guarantor Senior Debt in reliance
                  upon the covenants and provisions contained in this Article
                  Fifteen.

                  Section 1502.     Suspension of Payment When Guarantor Senior
                  Debt Is in Default. (a) Unless Section 1503 shall be
                  applicable, if any default occurs and is continuing in the
                  payment when due (and such default has not been cured or
                  waived), whether at maturity, upon any redemption, by
                  declaration or otherwise, of any principal of, premium (if
                  any) or interest on, unpaid drawings for letters of credit
                  issued in respect of, unreimbursed payments with respect to
                  bank guarantees issued in respect of or regularly accruing
                  fees with respect to, any Guarantor Senior Debt (a "Payment
                  Default"), then no payment or distribution of any kind or
                  character shall be made by or on behalf of any Guarantor or
                  any other Person on its or their behalf with respect to any
                  Obligations on or relating to the Guarantees or to acquire any
                  Notes for cash or property or otherwise.

                  (b)      Unless Section 1503 shall be applicable, if any other
                  event of default (other than a Payment Default) occurs and is
                  continuing with respect to any Guarantor Designated Senior
                  Debt (as such event of default is defined in the instrument
                  creating or evidencing such Guarantor Designated Senior Debt)
                  permitting the holders of such Guarantor Designated Senior
                  Debt then outstanding to accelerate the maturity thereof (a
                  "Non-payment Default") and if the Representative for the
                  respective issue of Guarantor Designated Senior Debt gives
                  notice of the event of default to the Trustee stating that
                  such notice is a payment blockage notice (a "Payment Blockage
                  Notice"), then, unless and until all events of default have
                  been cured or waived or have ceased to exist or a Responsible

                                       57

<PAGE>

                  Officer of the Trustee receives at the Corporate Trust Office
                  of the Trustee written notice thereof from the Representative
                  for the respective issue of Guarantor Designated Senior Debt
                  terminating the Payment Blockage Period, during the 180 days
                  after the delivery of such Payment Blockage Notice (the
                  "Payment Blockage Period"), neither any Guarantor nor any
                  other Person on its behalf shall (x) make any payment or
                  distribution of any kind or character with respect to any
                  Obligations on or with respect to the Guarantees or (y)
                  acquire any of the Notes for cash or property or otherwise.
                  Notwithstanding anything herein to the contrary, (x) in no
                  event will a Payment Blockage Period extend beyond 180 days
                  from the date the applicable Payment Blockage Notice is
                  received by the Trustee and (y) no new Payment Blockage Notice
                  may be delivered unless and until 360 days have elapsed since
                  the effectiveness of the immediately prior Payment Blockage
                  Notice. For all purposes of this Section 1502(b), no event of
                  default which existed or was continuing on the date of the
                  commencement of any Payment Blockage Period with respect to
                  the Guarantor Designated Senior Debt shall be, or be made, the
                  basis for the commencement of a second Payment Blockage Period
                  by the Representative of such Guarantor Designated Senior Debt
                  whether or not within a period of 360 days, unless such event
                  of default shall have been cured or waived for a period of not
                  less than 90 consecutive days (it being acknowledged that any
                  subsequent action, or any breach of any financial covenants
                  for a period commencing after the date of commencement of such
                  Payment Blockage Period that, in either case, would give rise
                  to an event of default pursuant to any provisions under which
                  an event of default previously existed or was continuing shall
                  constitute a new event of default for this purpose).

                  (c)      In the event that, notwithstanding the foregoing, any
                  payment shall be received by the Trustee or any Holder when
                  such payment is prohibited by the foregoing provisions of this
                  Section 1502, such payment shall be held in trust for the
                  benefit of, and shall be paid over or delivered to, the
                  holders of Guarantor Senior Debt (pro rata to such holders on
                  the basis of the respective amount of Senior Debt held by such
                  holders) or their respective Representatives, as their
                  respective interests may appear. The Trustee shall be entitled
                  to rely on information regarding amounts then due and owing on
                  the Guarantor Senior Debt, if any, received from the holders
                  of Guarantor Senior Debt (or their Representatives) or, if
                  such in-formation is not received from such holders or their
                  Representatives, from the Company and only amounts included in
                  the information provided to the Trustee shall be paid to the
                  holders of Guarantor Senior Debt.

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<PAGE>

                  If payment of the Notes and Guarantees is accelerated because
                  of an Event of Default, the Guarantors or the Trustee shall
                  promptly notify the holders of the Guarantor Senior Debt or
                  the Representative of such holders of the acceleration;
                  provided that any failure to give such notice shall have no
                  effect whatsoever on the subordination provisions contained
                  herein. If any Guarantor Senior Debt is outstanding, such
                  acceleration will not be effective until the time specified in
                  Section 502.

                  Nothing contained in this Article Fifteen shall limit the
                  right of the Trustee or the Holders of Notes to take any
                  action to accelerate the maturity of the Notes pursuant to
                  Section 502 or to pursue any rights or remedies hereunder
                  (subject, however, to the rights, if any, under this Article
                  Fifteen, of the holders of Guarantor Senior Debt in respect of
                  cash or other property of a Guarantor received upon the
                  exercise of any such remedy); provided that all Guarantor
                  Senior Debt thereafter due or declared to be due shall first
                  be paid in full in cash or Cash Equivalents before the Holders
                  are entitled to receive any payment of any kind or character
                  with respect to Obligations on, or with respect to, the
                  Guarantees.

                  Section 1503.     Guarantees Subordinated to Prior Payment of
                  All Guarantor Senior Debt on Dissolution, Liquidation or
                  Reorganization of the Guarantors. (a) Upon any payment or
                  distribution of assets of any Guarantor of any kind or
                  character, whether in cash, property or securities, to
                  creditors upon any total or partial liquidation, dissolution,
                  winding up, reorganization, assignment for the benefit of
                  creditors or marshaling of assets of any Guarantor or in a
                  bankruptcy, reorganization, insolvency, receivership or other
                  similar proceeding relating to any Guarantor or its property,
                  whether voluntary or involuntary, all Obligations due or to
                  become due upon all Guarantor Senior Debt shall first be paid
                  in full in cash or Cash Equivalents (including interest after
                  the commencement of any bankruptcy or other like proceeding at
                  the rate specified in the applicable Guarantor Senior Debt,
                  whether or not such interest is an allowed claim in any such
                  proceeding), before any payment or distribution of any kind or
                  character is made on account of any Obligations on or relating
                  to the Guarantees, or for the acquisition of any of the Notes
                  for cash or property or otherwise. Upon any such dissolution,
                  winding-up, liquidation, reorganization, receivership or
                  similar proceeding, any payment or distribution of assets of
                  any Guarantor of any kind or character, whether in cash,
                  property or securities, to which the Holders of the Notes or
                  the Trustee under this Indenture would be entitled, except for
                  the provisions hereof, shall be paid by the Guarantor or by
                  any receiver, trustee in bankruptcy, liquidating trustee,
                  agent or other Person making such payment or distribution,

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<PAGE>

                  or by the Holders or by the Trustee under this Indenture if
                  received by them, directly to the holders of Guarantor Senior
                  Debt (pro rata to such holders on the basis of the respective
                  amounts of Guarantor Senior Debt held by such holders) or
                  their respective Representatives, or to the trustee or
                  trustees under any indenture pursuant to which any of such
                  Guarantor Senior Debt may have been issued, as their
                  respective interests may appear, for application to the
                  payment of Guarantor Senior Debt remaining unpaid until all
                  such Guarantor Senior Debt has been paid in full in cash or
                  Cash Equivalents after giving effect to any concurrent
                  payment, distribution or provision therefor to or for the
                  holders of Guarantor Senior Debt.

                  (b)      To the extent any payment of Guarantor Senior Debt
                  (whether by or on behalf of any Guarantor, as proceeds of
                  security or enforcement of any right of set-off or otherwise)
                  is declared to be fraudulent or preferential, set aside or
                  required to be paid to any receiver, trustee in bankruptcy,
                  liquidating trustee, agent or other similar Person under any
                  bankruptcy, insolvency, receivership, fraudulent conveyance or
                  similar law, then, if such payment is recovered by, or paid
                  over to, such receiver, trustee in bankruptcy, liquidating
                  trustee, agent or other similar Person, the Guarantor Senior
                  Debt or part thereof originally intended to be satisfied shall
                  be deemed to be reinstated and outstanding as if such payment
                  had not occurred. It is further agreed that any diminution
                  (whether pursuant to court decree or otherwise, including
                  without limitation for any of the reasons described in the
                  preceding paragraph) of any Guarantor's obligation to make any
                  distribution or payment pursuant to any Guarantor Senior Debt,
                  except to the extent such diminution occurs by reason of the
                  repayment (which has not been disgorged or returned) of such
                  Guarantor Senior Debt in cash or Cash Equivalents, shall have
                  no force or effect for purposes of the subordination
                  provisions contained in this Article Fifteen, with any
                  turnover of payments as otherwise calculated pursuant to this
                  Article Fifteen to be made as if no such diminution had
                  occurred.

                  (c)      In the event that, notwithstanding the foregoing, any
                  payment or distribution of assets of any Guarantor of any kind
                  or character, whether in cash, property or securities, shall
                  be received by the Trustee or any Holder when such payment or
                  distribution is prohibited by this Section 1503, such payment
                  or distribution shall be held in trust for the benefit of, and
                  shall be paid over or delivered to, the holders of Guarantor
                  Senior Debt (pro rata to such holders on the basis of the
                  respective amount of Guarantor Senior Debt held by such
                  holders) or their respective Representatives, or to the
                  trustee or trustees under any indenture pursuant to which any
                  of such Guarantor Senior Debt may have been issued, as their

                                       60

<PAGE>

                  respective interests may appear, for application to the
                  payment of Guarantor Senior Debt remaining unpaid until all
                  such Guarantor Senior Debt has been paid in full in cash or
                  Cash Equivalents, after giving effect to any concurrent
                  payment, distribution or provision therefor to or for the
                  holders of such Guarantor Senior Debt.

                  (d)      The consolidation of any Guarantor with, or the
                  merger of any Guarantor with or into, another Person or the
                  liquidation or dissolution of any Guarantor following the
                  conveyance or transfer of all or substantially all of its
                  assets, to another Person upon the terms and conditions
                  provided in Article Eight hereof and as long as permitted
                  under the terms of the Guarantor Senior Debt shall not be
                  deemed a dissolution, winding-up, liquidation or
                  reorganization for the purposes of this Section 1503 if such
                  other Person shall, as a part of such consolidation, merger,
                  conveyance or transfer, assume the Guarantor's obligations
                  hereunder in accordance with Article Eight hereof.

                  Section 1504.     Payments May Be Paid Prior to Dissolution.
                  Nothing contained in this Article Fifteen or elsewhere in this
                  Indenture shall prevent (i) the Guarantors, except under the
                  conditions described in Sections 1502 and 1503, from making
                  payments at any time for the purpose of making payments of
                  principal of and interest on the Notes, or from depositing
                  with the Trustee any moneys for such payments, or (ii) in the
                  absence of actual knowledge by a Responsible Officer of the
                  Trustee that a given payment would be prohibited by Section
                  1502 or 1503, the application by the Trustee of any moneys
                  deposited with it for the purpose of making such payments of
                  principal of, and interest on, the Notes to the Holders
                  entitled thereto unless at least two Business Days prior to
                  the date upon which such payment would otherwise become due
                  and payable a Responsible Officer shall have actually received
                  the written notice provided for in the first sentence of
                  Section 1502(b) or in Section 1507 or in the last sentence of
                  this Section 1504 (provided that, notwithstanding the
                  foregoing, the subordination of the Guarantees to Guarantor
                  Senior Debt shall not be affected and the Holders receiving
                  any payments made in contravention of Section 1502 and/or 1503
                  (and the respective such payments) shall otherwise be subject
                  to the provisions of this Article Fifteen). The Company shall
                  give prompt written notice to the Trustee of any dissolution,
                  winding-up, liquidation or reorganization of any Guarantor,
                  although any delay or failure to give any such notice shall
                  have no effect on the subordination provisions contained
                  herein.

                  Section 1505.     Holders To Be Subrogated to Rights of
                  Holders of Guarantor Senior Debt. Subject to the payment in
                  full in cash or

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<PAGE>

                  Cash Equivalents of all Guarantor Senior Debt, the Holders of
                  the Guarantees shall be subrogated to the rights of the
                  holders of Guarantor Senior Debt to receive payments or
                  distributions of cash, property or securities of any Guarantor
                  applicable to the Guarantor Senior Debt until the Notes shall
                  be paid in full; and, for the purposes of such subrogation, no
                  such payments or distributions to the holders of the Guarantor
                  Senior Debt by or on behalf of any Guarantor, or by or on
                  behalf of the Holders by virtue of this Article Fifteen, which
                  otherwise would have been made to the Holders shall, as
                  between any Guarantor and the Holders, be deemed to be a
                  payment by any Guarantor to or on account of the Guarantor
                  Senior Debt, it being understood that the provisions of this
                  Article Fifteen are and are intended solely for the purpose of
                  defining the relative rights of the Holders, on the one hand,
                  and the holders of Guarantor Senior Debt, on the other hand.

                  Section 1506.     Obligations of Guarantors Unconditional.
                  Nothing contained in this Article Fifteen or elsewhere in this
                  Indenture or in the Guarantees is intended to or shall impair,
                  as among the Guarantors, its creditors other than the holders
                  of Guarantor Senior Debt, and the Holders, the obligation of
                  the Guarantors, which is absolute and unconditional, to pay to
                  the Holders the principal of and any interest on the Notes as
                  and when the same shall become due and payable in accordance
                  with their terms, or is intended to or shall affect the
                  relative rights of the Holders and creditors of the Guarantors
                  other than the holders of the Guarantor Senior Debt, nor shall
                  anything herein or therein prevent the Holder of any Guarantee
                  or the Trustee on its behalf from exercising all remedies
                  otherwise permitted by applicable law upon default under this
                  Indenture, subject to the rights, if any, in respect of cash,
                  property or securities of any Guarantor received upon the
                  exercise of any such remedy.

                  Section 1507.     Notice to Trustee. The Company shall give
                  prompt written notice to the Trustee of any fact known to the
                  Company which would prohibit the making of any payment to or
                  by the Trustee in respect of the Guarantees pursuant to the
                  provisions of this Article Fifteen, although any delay or
                  failure to give any such notice shall have no effect on the
                  subordination provisions contained herein. Regardless of
                  anything to the contrary contained in this Article Fifteen or
                  elsewhere in this Indenture, the Trustee shall not be charged
                  with knowledge of the existence of any default or event of
                  default with respect to any Guarantor Senior Debt or of any
                  other facts which would prohibit the making of any payment to
                  or by the Trustee unless and until a Responsible Officer of
                  the Trustee shall have received at the Corporate Trust Office
                  of the Trustee notice in writing from the Company or from a

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<PAGE>

                  holder of Guarantor Senior Debt or a Representative therefor
                  and, prior to the receipt of any such written notice, the
                  Trustee shall be entitled to assume that no such facts exist
                  (provided that, notwithstanding the foregoing, the Holders of
                  the Guarantees receiving any payments made in contravention of
                  Section 1502 and/or 1503 hereof (and the respective such
                  payments) shall otherwise be subject to the provisions of this
                  Article Fifteen). The Trustee shall be entitled to rely on the
                  delivery to it of any notice pursuant to this Section 1507 to
                  establish that such notice has been given by a holder of
                  Guarantor Senior Debt (or a Representative thereof).

                  In the event that the Trustee determines in good faith that
                  any evidence is required with respect to the right of any
                  Person as a holder of Guarantor Senior Debt to participate in
                  any payment or distribution pursuant to this Article Fifteen,
                  the Trustee may request such Person to furnish evidence to the
                  reasonable satisfaction of the Trustee as to the amounts of
                  Guarantor Senior Debt held by such Person, the extent to which
                  such Person is entitled to participate in such payment or
                  distribution and any other facts pertinent to the rights of
                  such Person under this Article Fifteen, and if such evidence
                  is not furnished the Trustee may defer any payment to such
                  Person pending judicial determination as to the right of such
                  Person to receive such payment.

                  Section 1508.     Reliance on Judicial Order or Certificate of
                  Liquidating Agent. Upon any payment or distribution of assets
                  of any Guarantor referred to in this Article Fifteen, the
                  Trustee, subject to the provisions of Article Six hereof, and
                  the Holders of the Guarantees shall be entitled to rely upon
                  any order or decree made by any court of competent
                  jurisdiction in which any insolvency, bankruptcy,
                  receivership, dissolution, winding-up, liquidation,
                  reorganization or similar case or proceeding is pending, or
                  upon a certificate of the receiver, trustee in bankruptcy,
                  liquidating trustee, assignee for the benefit of creditors,
                  agent or other person making such payment or distribution,
                  delivered to the Trustee or the Holders of the Guarantees, for
                  the purpose of ascertaining the Persons entitled to
                  participate in such payment or distribution, the holders of
                  the Guarantor Senior Debt and other Indebtedness of the
                  Guarantors, the amount thereof or payable thereon, the amount
                  or amounts paid or distributed thereon and all other facts
                  pertinent thereto or to this Article Fifteen.

                  Section 1509.     Trustee's Relation to Guarantor Senior Debt.
                  The Trustee and any agent of the Guarantors or the Trustee
                  shall be entitled to all the rights set forth in this Article
                  Fifteen with respect to any Guarantor Senior Debt which may at
                  any time be held by it

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<PAGE>

                  in its individual or any other capacity to the same extent as
                  any other holder of Guarantor Senior Debt and nothing in this
                  Indenture shall deprive the Trustee or any such agent of any
                  of its rights as such holder.

                  With respect to the holders of Guarantor Senior Debt, the
                  Trustee undertakes to perform or to observe only such of its
                  covenants and obligations as are specifically set forth in
                  this Article Fifteen, and no implied covenants or obligations
                  with respect to the holders of Guarantor Senior Debt shall be
                  read into this Indenture against the Trustee. The Trustee
                  shall not be deemed to owe any fiduciary duty to the holders
                  of Guarantor Senior Debt.

                  Whenever a distribution is to be made or a notice given to
                  holders or owners of Guarantor Senior Debt, the distribution
                  may be made and the notice may be given to their
                  Representative, if any.

                  Section 1510.     Subordination Rights Not Impaired by Acts or
                  Omissions of the Guarantors or Holders of Guarantor Senior
                  Debt. No right of any present or future holders of any
                  Guarantor Senior Debt to enforce subordination as provided
                  herein shall at any time in any way be prejudiced or impaired
                  by any act or failure to act on the part of the Guarantors or
                  by any act or failure to act by any such holder, or by any
                  noncompliance by the Guarantors with the terms of this
                  Indenture, regardless of any knowledge thereof which any such
                  holder may have or otherwise be charged with.

                  Without in any way limiting the generality of the foregoing
                  paragraph, the holders of Guarantor Senior Debt may, at any
                  time and from time to time, without the consent of or notice
                  to the Trustee or the Holders of the Guarantees, without
                  incurring responsibility to the Trustee or the Holders of the
                  Guarantees and without impairing or releasing the
                  subordination provided in this Article Fifteen or the
                  obligations hereunder of the Holders of the Guarantees to the
                  holders of the Guarantor Senior Debt, do any one or more of
                  the following: (i) change the manner, place or terms of
                  payment or extend the time of payment of, or renew or alter,
                  Guarantor Senior Debt, or otherwise amend or supplement in any
                  manner Guarantor Senior Debt, or any instrument evidencing the
                  same or any agreement under which Guarantor Senior Debt is
                  outstanding; (ii) sell, exchange, release or otherwise deal
                  with any property pledged, mortgaged or other-wise securing
                  Guarantor Senior Debt; (iii) release any Person liable in any
                  manner for the payment or collection of Guarantor Senior Debt;
                  and (iv) exercise or refrain from exercising any rights
                  against the Guarantors and any other Person.

                                       64

<PAGE>

                  Section 1511.     Securityholders Authorize Trustee To
                  Effectuate Subordination of Guarantees. Each Holder of
                  Guarantees by its acceptance of them authorizes and expressly
                  directs the Trustee on its behalf to take such action as may
                  be necessary or appropriate to effectuate, as between the
                  holders of Guarantor Senior Debt and the Holders of
                  Guarantees, the subordination provided in this Article
                  Fifteen, and appoints the Trustee its attorney-in-fact for
                  such purposes, including, in the event of any dissolution,
                  winding-up, liquidation or reorganization of any Guarantor
                  (whether in bankruptcy, insolvency, receivership,
                  reorganization or similar proceedings or upon an assignment
                  for the benefit of credits or otherwise) tending towards
                  liquidation of the business and assets of any Guarantor, the
                  filing of a claim for the unpaid balance of its Guarantees and
                  accrued interest in the form required in those proceedings.

                  If the Trustee does not file a proper claim or proof of debt
                  in the form required in such proceeding prior to 30 days
                  before the expiration of the time to file such claim or
                  claims, then the holders of the Guarantor Senior Debt or their
                  Representative are or is hereby authorized to have the right
                  to file and are or is hereby authorized to file an appropriate
                  claim for and on behalf of the Holders of said Guarantees.
                  Nothing herein contained shall be deemed to authorize the
                  Trustee or the holders of Guarantor Senior Debt or their
                  Representative to authorize or consent to or accept or adopt
                  on behalf of any Holder any plan of reorganization,
                  arrangement, adjustment or composition affecting the
                  Guarantees or the rights of any Holder thereof, or to
                  authorize the Trustee or the holders of Guarantor Senior Debt
                  or their Representative to vote in respect of the claim of any
                  Holder in any such proceeding.

                  Section 1512.     This Article Fifteen Not To Prevent Events
                  of Default. The failure to make a payment on account of
                  principal of or interest on the Notes by reason of any
                  provision of this Article Fifteen will not be construed as
                  preventing the occurrence of an Event of Default.

                  Section 1513.     Trustee's Compensation Not Prejudiced.
                  Nothing in this Article Fifteen will apply to amounts due to
                  the Trustee pursuant to other sections of this Indenture.

                  ARTICLE SIXTEEN.  GUARANTEE

                  Section 1601.     Unconditional Guarantee. Each Guarantor
                  hereby unconditionally guarantees (such guarantee to be
                  referred to herein as a "Guarantee"), on a senior subordinated
                  basis jointly and severally, to each Holder of a Note
                  authenticated and delivered by

                                       65

<PAGE>

                  the Trustee and to the Trustee and its successors and assigns,
                  the Notes or the obligations of the Company hereunder or
                  thereunder, that: (i) the principal of and interest on the
                  Notes will be promptly paid in full when due, subject to any
                  applicable grace period, whether at maturity, by acceleration
                  or otherwise and interest on the overdue principal, if any,
                  and interest on any interest, to the extent lawful, of the
                  Notes and all other obligations of the Company to the Holders
                  or the Trustee hereunder or thereunder will be promptly paid
                  in full or performed, all in accordance with the terms hereof
                  and thereof; and (ii) in case of any extension of time of
                  payment or renewal of any Notes or of any such other
                  obligations, the same will be promptly paid in full when due
                  or performed in accordance with the terms of the extension or
                  renewal, subject to any applicable grace period, whether at
                  stated maturity, by acceleration or otherwise, subject,
                  however, in the case of clauses (i) and (ii) above, to the
                  limitations set forth in Section 1603. Each Guarantor hereby
                  agrees that its obligations hereunder shall be unconditional,
                  irrespective of the validity, regularity or enforceability of
                  the Notes or this Indenture, the absence of any action to
                  enforce the same, any waiver or consent by any Holder of the
                  Notes with respect to any provisions hereof or thereof, the
                  recovery of any judgment against the Company, and action to
                  enforce the same or any other circumstance which might
                  otherwise constitute a legal or equitable discharge or defense
                  of a guarantor. Each Guarantor hereby waives diligence,
                  presentment, demand of payment, filing of claims with a court
                  in the event of insolvency or bankruptcy of the Company, any
                  right to require a proceeding first against the Company,
                  protest, notice and all demands whatsoever and covenants that
                  this Guarantee will not be discharged except by complete
                  performance of the obligations contained in the Notes, this
                  Indenture and in this Guarantee. If any Holder or the Trustee
                  is required by any court or otherwise to return to the
                  Company, any Guarantor, or any custodian, trustee, liquidator
                  or other similar official acting in relation to the Company or
                  any Guarantor, any amount paid by the Company or any Guarantor
                  to the Trustee or such Holder, this Guarantee, to the extent
                  theretofore discharged, shall be reinstated in full force and
                  effect. Each Guarantor further agrees that, as between each
                  Guarantor, on the one hand, and the Holders and the Trustee,
                  on the other hand, (x) the maturity of the obligations
                  guaranteed hereby may be accelerated as provided in Article
                  Five for the purposes of this Guarantee, notwithstanding any
                  stay, injunction or other prohibition preventing such
                  acceleration in respect of the obligations guaranteed hereby,
                  and (y) in the event of any acceleration of such obligations
                  as provided in Article Five, such obligations (whether or not
                  due and payable) shall forthwith

                                       66

<PAGE>

                  become due and payable by each Guarantor for the purpose of
                  this Guarantee. The obligations of each Guarantor to the
                  Holders of the Guarantees and to the Trustee pursuant to the
                  Guarantee of such Guarantor and this Indenture are expressly
                  subordinate and subject in right of payment to the prior
                  payment in full in cash or Cash Equivalents of all Guarantor
                  Senior Debt of such Guarantor, to the extent and in the manner
                  provided in Article Fifteen hereof.

                  Section 1602.     Severability.  In case any provision of this
                  Guarantee shall be invalid, illegal or unenforceable, the
                  validity, legality, and enforceability of the remaining
                  provisions shall not in any way be affected or impaired
                  thereby.

                  Section 1603.     Limitation of Guarantor's Liability. Each
                  Guarantor and by its acceptance hereof each Holder hereby
                  confirms that it is the intention of all such parties that the
                  guarantee by such Guarantor pursuant to its Guarantee not
                  constitute a fraudulent transfer or conveyance for purposes of
                  any Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the
                  Uniform Fraudulent Transfer Act or any similar federal or
                  state law. To effectuate the foregoing intention, the Holders
                  and such Guarantor hereby irrevocably agree that the
                  obligations of such Guarantor under the Guarantee shall be
                  limited to the maximum amount as will, after giving effect to
                  all other contingent and fixed liabilities of such Guarantor
                  (including, without limitation, all Guarantor Senior Debt of
                  such Guarantor) and after giving effect to any collections
                  from or payments made by or on behalf of any other Guarantor
                  in respect of the obligations of such other Guarantor under
                  its Guarantee, result in the obligations of such Guarantor
                  under the Guarantee not constituting such fraudulent transfer
                  or conveyance.

                  Section 1604.     Release of Guarantor. (a) The Guarantee of a
                  Guarantor will be automatically and unconditionally released
                  without any action on the part of the Trustee or the Holders
                  of the Notes: (1) in connection with any sale or other
                  disposition of all or substantially all of the assets of that
                  Guarantor (including, without limitation, by way of merger or
                  consolidation), if the Company applies the Net Cash Proceeds
                  of that sale or other disposition in accordance with the
                  applicable provisions of this Indenture; (2) in the event all
                  of the Capital Stock of a Guarantor is sold by the Company in
                  compliance with clauses (1) and (2) of Section 1015(A) hereof,
                  if the Company applies the Net Cash Proceeds of that sale in
                  accordance with the applicable provisions of this Indenture;
                  (3) if the Company designates a Restricted Subsidiary that is
                  a Guarantor as an Unrestricted Subsidiary in

                                       67

<PAGE>

                  accordance with the applicable provisions of this Indenture;
                  or (4) upon the payment in full of the Notes.

                  In addition, concurrently with any Legal Defeasance or
                  Covenant Defeasance, the Guarantors shall be released from all
                  of their Obligations under their respective applicable
                  Guarantees.

                  (b)      The Trustee shall deliver an appropriate instrument
                  evidencing such re-lease upon receipt of a request by the
                  Company accompanied by an Officers' Certificate and Opinion of
                  Counsel certifying as to the compliance with this Section
                  1604.

                  Section 1605.     Immediate Payment. Each Guarantor agrees to
                  make immediate payment to the Trustee on behalf of the Holders
                  of all Obligations due and owing or payable to the respective
                  Holders upon receipt of a demand for payment therefor by the
                  Trustee to such Guarantor in writing.

                  Section 1606.     Waiver of Subrogation. Until all Obligations
                  are paid in full, each Guarantor hereby irrevocably waives any
                  claims or other rights which it may now or hereafter acquire
                  against the Company that arise from the existence, payment,
                  performance or enforcement of such Guarantor's obligations
                  under the Guarantee and this Indenture, including, without
                  limitation, any right of subrogation, reimbursement,
                  exoneration, indemnification, and any right to participate in
                  any claim or remedy of any Holder against the Company, whether
                  or not such claim, remedy or right arises in equity, or under
                  contract, statute or common law, including, without
                  limitation, the right to take or receive from the Company,
                  directly or indirectly, in cash or other property or by
                  set-off or in any other manner, payment or security on account
                  of such claim or other rights. If any amount shall be paid to
                  any Guarantor in violation of the preceding sentence and the
                  Notes shall not have been paid in full, such amount shall have
                  been deemed to have been paid to such Guarantor for the
                  benefit of, and held in trust for the benefit of, the Holders,
                  and shall, subject to the provisions of Article Fifteen
                  hereof, forthwith be paid to the Trustee for the benefit of
                  such Holders to be credited and applied upon the Notes,
                  whether matured or unmatured, in accordance with the terms of
                  this Indenture. Each Guarantor acknowledges that it will
                  receive direct and indirect benefits from the financing
                  arrangements contemplated by this Indenture and that the
                  waiver set forth in this Section 1606 is knowingly made in
                  contemplation of such benefits.

                  Section 1607.     Execution of Guarantee. To evidence their
                  guarantee to the Holders set forth in this Article Sixteen,
                  the Guarantors hereby agree to execute the Guarantee in
                  substantially

                                       68

<PAGE>

                  the form attached hereto as Exhibit A, which shall be endorsed
                  on each Note ordered to be authenticated and delivered by the
                  Trustee. Each Guarantor hereby agrees that its Guarantee set
                  forth in this Article Sixteen shall remain in full force and
                  effect notwithstanding any failure to endorse on each Note a
                  notation of such Guarantee. Each such Guarantee shall be
                  signed on behalf of each Guarantor by one of its authorized
                  Officers prior to the authentication of the Note on which it
                  is endorsed, and the delivery of such Note by the Trustee,
                  after the authentication thereof hereunder, shall constitute
                  due delivery of such Guarantee on behalf of such Guarantor.
                  Such signatures upon the Guarantee may be by manual or
                  facsimile signature of such officers and may be imprinted or
                  otherwise reproduced on the Guarantee, and in case any such
                  officer who shall have signed the Guarantee shall cease to be
                  such officer before the Note on which such Guarantee is
                  endorsed shall have been authenticated and delivered by the
                  Trustee or disposed of by the Company, such Note nevertheless
                  may be authenticated and delivered or disposed of as though
                  the Person who signed the Guarantee had not ceased to be such
                  officer of the Guarantor.

                  Section 1608.     Waiver of Stay, Extension or Usury Laws.
                  Each Guarantor covenants (to the extent that it may lawfully
                  do so) that it will not at any time insist upon, plead, or in
                  any manner whatsoever claim or take the benefit or advantage
                  of, any stay or extension law or any usury law or other law
                  that would prohibit or forgive each such Guarantor from
                  performing its Guarantee as contemplated herein, wherever
                  enacted, now or at any time hereafter in force, or which may
                  affect the covenants or the performance of this Indenture; and
                  (to the extent that it may lawfully do so) each such Guarantor
                  hereby expressly waives all benefit or advantage of any such
                  law, and covenants that it will not hinder, delay or impede
                  the execution of any power herein granted to the Trustee, but
                  will suffer and permit the execution of every such power as
                  though no such law had been enacted."

                  (y)      The exhibit attached hereto as Exhibit B shall be
added to the Original Indenture as Exhibit A thereto.

                                  ARTICLE FOUR
                            MISCELLANEOUS PROVISIONS

         Section 401       Confirmation of Original Indenture. The Original
Indenture, as heretofore supplemented and amended by the 1993 Officers'
Certificate, the 1998 Officers' Certificate, the First Supplemental Indenture
and this Second Supplemental Indenture, is in all respects ratified and
confirmed, and the Original Indenture, the 1993 Officers' Certificate, the 1998
Officers' Certificate, the First Supplemental Indenture and this Second
Supplemental Indenture and all

                                       69

<PAGE>

indentures supplemental thereto shall be read, taken and construed as one and
the same instrument.

         Section 402       Concerning the New Trustee. The New Trustee assumes
no duties, responsibilities or liabilities by reason of this Second Supplemental
Indenture other than as set forth in the Original Indenture and, in carrying out
its responsibilities hereunder, shall have all of the rights, protections and
immunities which it possesses under the Original Indenture. The New Trustee
makes no representation as to the validity, sufficiency or priority of this
Second Supplemental Indenture.

         Section 403       Governing Law. This Second Supplemental Indenture and
the Notes shall be governed by and construed in accordance with the laws of the
State of New York applicable to agreements made or instruments entered into and,
in each case, performed in said state.

         Section 404       Separability. In case any provision in this Second
Supplemental Indenture or in the Notes shall for any reason be held to be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions of this Second Supplemental Indenture or the Notes
shall not in any way be affected or impaired thereby.

         Section 405       Counterparts. This Second Supplemental Indenture may
be executed in several counterparts, each of which shall be an original and all
of which shall constitute but one and the same document.

         Section 406       Effect of Headings. The Section headings herein are
for convenience only and shall not affect the construction hereof.

                                       70

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Second
Supplemental Indenture to be duly executed, and their respective corporate seals
to be hereunto affixed and attested, all as of the day and year first above
written.

                                DOLE FOOD COMPANY, INC.

                                By: /s/ Lawrence A. Kern
                                    ------------------------------------------
                                    Name:  Lawrence A. Kern
                                    Title: President & Chief Operating Officer

                                WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                as Trustee

                                By: /s/ Frank McDonald
                                    ------------------------------------------
                                    Name:  Frank McDonald
                                    Title: Vice President

                                THE GUARANTORS LISTED ON EXHIBIT C HERETO

                                By: /s/ C. Michael Carter
                                    ------------------------------------------
                                    Name:  C. Michael Carter
                                    Title: Vice President

<PAGE>

                                    EXHIBIT A

                                  Exhibit A to
                          Second Supplemental Indenture

                    [FORM OF NOTICE OF REMOVAL OF TRUSTEE AND
                        APPOINTMENT OF SUCCESSOR TRUSTEE]

         NOTICE IS HEREBY GIVEN that the undersigned DOLE FOOD COMPANY, INC. has
removed J.P. MORGAN TRUST COMPANY as Trustee under the Indenture, dated as of
July 15, 1993, as amended (the "Indenture"), of Dole Food Company, Inc. to
Chemical Trust Company of California, as Trustee, such removal having taken
effect at the opening of business on March 28, 2003. NOTICE IS ALSO HEREBY GIVEN
that the undersigned DOLE FOOD COMPANY, INC., having removed J.P. Morgan Trust
Company as Trustee under the Indenture, has appointed WELLS FARGO BANK, NATIONAL
ASSOCIATION as successor Trustee under such Indenture, and Wells Fargo Bank,
National Association has accepted such appointment, effective as of the opening
of business on March 28, 2003.

Dated: March 28, 2003

                                    DOLE FOOD COMPANY, INC.

                                      A-1

<PAGE>

                                    EXHIBIT B

                                    GUARANTEE

         For value received, the undersigned hereby unconditionally guarantees,
as principal obligor and not only as a surety, to the Holder of this Note the
cash payments in United States dollars of principal of, premium, if any, and
interest on this Note in the amounts and at the times when due and interest on
the overdue principal, premium, if any, and interest, if any, of this Note, if
lawful, and the payment or performance of all other Obligations of the Company
under the Indenture (as defined below) or the Note, to the Holder of this Note
and the Trustee, all in accordance with and subject to the terms and limitations
of this Note, Article Sixteen of the Indenture, the subordination provisions of
Article Fifteen of the Indenture and this Guarantee. This Guarantee will become
effective in accordance with Article Sixteen of the Indenture and its terms
shall be evidenced therein. The validity and enforceability of this Guarantee
shall not be affected by the fact that it is not affixed to any particular Note.
Capitalized terms used but not defined herein shall have the meanings ascribed
to them in the Second Supplemental Indenture dated as of March 28, 2003, among
Dole Food Company, Inc., a Delaware corporation, as issuer (the "Company"), each
of the Guarantors named therein and Wells Fargo Bank, National Association, as
trustee (the "Trustee") (as amended or supplemented, the "Indenture").

         THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAW OF
ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. Each Guarantor hereby agrees to
submit to the jurisdiction of the courts of the State of New York in any action
or proceeding arising out of or relating to this Guarantee.

         This Guarantee is subject to release upon the terms set forth in the
Second Supplemental Indenture.

                                    THE GUARANTORS NAMED IN
                                        SCHEDULE A ATTACHED HERETO

                                    By:_______________________________
                                       Name:
                                       Title:

                                      B-1

<PAGE>

                                    EXHIBIT C

                                   GUARANTORS

Calazo Corporation
AG 1970, Inc.
AG 1971, Inc.
AG 1972, Inc.
Alyssum Corporation
Barclay Hollander Corporation
Bud Antle, Inc.
Calicahomes, Inc.
California Polaris, Inc.
Dole ABPIK, Inc.
Dole Arizona Dried Fruit and Nut Company
Dole Asia, Inc.
Dole Carrot Company
Dole Citrus
Dole DF&N, Inc.
Dole Dried Fruit and Nut Company, a California General Partnership
Dole Farming, Inc.
Dole Fresh Vegetables, Inc.
Dole Orland, Inc.
Dole Visage, Inc.
E. T. Wall Company
Earlibest Orange Association, Inc.
Fallbrook Citrus Company, Inc.
Lindero Headquarters Company, Inc.
Lindero Property, Inc.
Oceanview Produce Company
Prairie Vista, Inc.
Royal Packing Co.
Veltman Terminal Co.
Bananera Antillana (Colombia), Inc.
Clovis Citrus Association
Delphinium Corporation
Dole Europe Company
Dole Foods Flight Operations, Inc.
Dole Fresh Flowers, Inc.
Dole Northwest, Inc.
Dole Sunfresh Express, Inc.
Standard Fruit and Steamship Company
Standard Fruit Company
Sun Country Produce, Inc.
West Foods, Inc.
Cool Advantage, Inc.

                                      C-1

<PAGE>

Cool Care, Inc.
Flowernet Inc.
Saw Grass Transport, Inc.
Blue Anthurium, Inc.
Cerulean, Inc.
Dole Diversified, Inc.
Dole Land Company, Inc.
Dole Packaged Foods Corporation
Intervest, Inc.
La Petite d'Agen, Inc.
MK Development, Inc.
Malaga Company, Inc.
Muscat, Inc.
Oahu Transport Company, Limited
Wahiawa Water Company, Inc.
Waialua Sugar Company, Inc.
Zante Currant, Inc.
Diversified Imports Co.
Dole Assets, Inc.
Dole Fresh Fruit Company
Dole Holdings, Inc.
Dole Logistics Services, Inc.
Dole Ocean Cargo Express, Inc. (DOCE)
Dole Ocean Liner Express, Inc.
Renaissance Capital Corporation
Sun Giant, Inc.
DNW Services Company
Pacific Coast Truck Company
Pan-Alaska Fisheries, Inc.

                                      C-2

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