Document:

exv10w1

 

PURCHASE AGREEMENT

dated as of

September __, 2005

among

MARTIN OPERATING PARTNERSHIP L.P. ,

PRISM GAS SYSTEMS I, L.P.,

and

NATURAL GAS PARTNERS V, L.P.

ROBERT E. DUNN

WILLIAM J. DIEHNELT

GENE A. ADAMS

PHILIP D. GETTIG

SHARON L. TAYLOR

SCOTT A. SOUTHARD

relating to the purchase and sale

of

100% of the Membership Interests

of

PRISM GAS SYSTEMS GP, L.L.C.

AND

100% of the Limited Partnership Interests

of

PRISM GAS SYSTEMS I, L.P.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1 Definitions
	 	 	1	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Other Definitional and Interpretative Provisions
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 2 Purchase and Sale
	 	 	7	 
	Section 2.01. Purchase and Sale
	 	 	7	 
	Section 2.02. Closing
	 	 	7	 
	Section 2.03. Closing Date Balance Sheet
	 	 	8	 
	Section 2.04. Adjustment of the Purchase Price
	 	 	9	 
	Section 2.05. Title Defects
	 	 	9	 
	Section 2.06. Allocation of Purchase Price
	 	 	11	 
	Section 2.07. Earnest Money
	 	 	11	 
	Section 2.08. Additional Damage Payment Upon Breach of Buyer
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 3 Representations and Warranties of Sellers
	 	 	12	 
	Section 3.01. Existence and Power
	 	 	12	 
	Section 3.02. Sellers Authorization
	 	 	12	 
	Section 3.03. Governmental Authorization
	 	 	12	 
	Section 3.04. Noncontravention
	 	 	12	 
	Section 3.05. Capitalization
	 	 	12	 
	Section 3.06. Ownership of Interests
	 	 	13	 
	Section 3.07. Subsidiaries; Investments
	 	 	13	 
	Section 3.08. Financial Statements
	 	 	13	 
	Section 3.09. Absence of Certain Changes
	 	 	14	 
	Section 3.10. Intercompany Accounts
	 	 	15	 
	Section 3.11. Material Contracts
	 	 	16	 
	Section 3.12. Litigation
	 	 	16	 
	Section 3.13. Compliance with Laws and Court Orders
	 	 	16	 
	Section 3.14. Intellectual Property
	 	 	16	 
	Section 3.15. Insurance Coverage
	 	 	17	 
	Section 3.16. Finders’ Fees
	 	 	17	 
	Section 3.17. Employees
	 	 	17	 
	Section 3.18. Employee Benefit Plans
	 	 	17	 
	Section 3.19. Gas Regulatory Matters
	 	 	18	 
	Section 3.20. Tax Matters
	 	 	18	 
	Section 3.21. Environmental Matters
	 	 	18	 
	Section 3.22. Preferential or Consent Rights
	 	 	19	 
	Section 3.23. Letters of Credit; Bank Accounts
	 	 	19	 
	Section 3.24. Real Property
	 	 	19	 
	Section 3.25. Tangible Personal Property
	 	 	20	 
	Section 3.26. Absence of Undisclosed Liabilities
	 	 	20	 
	Section 3.27. Suspense Accounts
	 	 	20	 
	Section 3.28. Accounts Receivable
	 	 	20	 
	Section 3.29. Investment Representations
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 4 Representations and Warranties of Buyer
	 	 	21	 
	Section 4.01. Existence and Power
	 	 	21	 
	Section 4.02. Authorization
	 	 	21	 
	Section 4.03. Governmental Authorization
	 	 	21	 
	Section 4.04. Noncontravention
	 	 	21	 
	Section 4.05. Purchase for Investment
	 	 	21	 
	Section 4.06. Litigation
	 	 	21	 

i

 

	 	 	 	 	 
	Section 4.07. Finders’ Fees
	 	 	22	 
	Section 4.08. Inspections
	 	 	22	 
	Section 4.09. Financing
	 	 	22	 
	 
	 	 	 	 
	ARTICLE 5 Covenants of Sellers
	 	 	22	 
	Section 5.01. Conduct of the Partnership Group
	 	 	22	 
	Section 5.02. Access to Information
	 	 	23	 
	Section 5.03. Notices of Certain Events
	 	 	23	 
	 
	 	 	 	 
	ARTICLE 6 Covenants of Buyer
	 	 	23	 
	Section 6.01. Confidentiality
	 	 	24	 
	Section 6.02. Access
	 	 	24	 
	Section 6.03. Representation
	 	 	24	 
	 
	 	 	 	 
	ARTICLE 7 Covenants of Buyer and Sellers
	 	 	24	 
	Section 7.01. Reasonable Best Efforts; Further Assurances
	 	 	24	 
	Section 7.02. Certain Filings
	 	 	24	 
	Section 7.03. Public Announcements
	 	 	25	 
	Section 7.04. Tax Matters
	 	 	25	 
	Section 7.05. Relationship Among Sellers
	 	 	26	 
	Section 7.06. Termination Agreements and Continuation of Indemnification Obligations; Certain Agreements
	 	 	27	 
	Section 7.07. Release of Claims
	 	 	27	 
	Section 7.08. Accountant Consents
	 	 	27	 
	Section 7.09. Limitation and Disclaimer of Implied Representations and Warranties of the Partnership
	 	 	28	 
	Section 7.10. Data Room
	 	 	28	 
	Section 7.11. Joint Ventures
	 	 	28	 
	Section 7.12. McLeod Right of Way Title Issue
	 	 	28	 
	Section 7.13. Prism Gas Tax Issues and Dissolution
	 	 	29	 
	Section 7.14. Additional Financial Statements
	 	 	29	 
	Section 7.15. Appraisal
	 	 	30	 
	Section 7.16. Insurance Policy
	 	 	30	 
	 
	 	 	 	 
	ARTICLE 8 Other Agreements
	 	 	31	 
	Section 8.01. Noncompetition
	 	 	31	 
	Section 8.02. Phase I Environmental Assessments
	 	 	31	 
	Section 8.03. Employees; Employee Benefits
	 	 	31	 
	 
	 	 	 	 
	ARTICLE 9 Conditions to Closing
	 	 	33	 
	Section 9.01. Conditions to Obligations of Buyer and Sellers
	 	 	33	 
	Section 9.02. Conditions to Obligation of Buyer
	 	 	33	 
	Section 9.03. Conditions to Obligation of Sellers
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 10 Termination
	 	 	34	 
	Section 10.01. Grounds for Termination
	 	 	34	 
	Section 10.02. Effect of Termination
	 	 	35	 
	 
	 	 	 	 
	ARTICLE 11 Indemnification
	 	 	35	 
	Section 11.01. Indemnification by Sellers
	 	 	35	 
	Section 11.02. Indemnification by Buyer
	 	 	35	 
	Section 11.03. Procedures for Indemnification.
	 	 	35	 
	Section 11.04. Survival
	 	 	36	 
	Section 11.05. Limitations on Indemnification
	 	 	37	 
	Section 11.06. Exclusive Remedies
	 	 	37	 

ii

 

	 	 	 	 	 
	Section 11.07. Inconsistent Provisions
	 	 	38	 
	Section 11.08. Right to Indemnification Not Affected by Knowledge; Knowledge of Breach
	 	 	38	 
	Section 11.09. Express Negligence
	 	 	38	 
	ARTICLE 12 Miscellaneous
	 	 	38	 
	Section 12.01. Purchase Price Adjustment
	 	 	38	 
	Section 12.02. Notices
	 	 	38	 
	Section 12.03. Amendments and Waivers
	 	 	39	 
	Section 12.04. Expenses
	 	 	39	 
	Section 12.05. Successors and Assigns
	 	 	40	 
	Section 12.06. Governing Law
	 	 	40	 
	Section 12.07. Jurisdiction
	 	 	40	 
	Section 12.08. Counterparts; Effectiveness; Third Party Beneficiaries
	 	 	40	 
	Section 12.09. Entire Agreement
	 	 	40	 
	Section 12.10. Severability
	 	 	40	 
	Section 12.11. Disclosure Schedules
	 	 	40	 

iii

 

LIST OF EXHIBITS AND ANNEXES

Exhibit A – Escrow Agreement

Exhibit B – Release of NGP

Exhibit C – Release of Sellers

Exhibit D – Mutual Release with Manager, Director, or Officer

Exhibit E – Avail Consulting Engagement Letter

Annex A – Ownership of Interests

LIST OF SCHEDULES

	 	 	 	 	 
	Schedule 1.01

	 	-
	 	Permitted Liens
	Schedule 2.05(a)(1)

	 	-
	 	Waskom Site Property Description
	Schedule 3.04

	 	-
	 	Noncontravention
	Schedule 3.05(b)

	 	-
	 	Partnership Securities
	Schedule 3.05(c)

	 	-
	 	Rights to Purchase Interests or Stock of Partnership Group
	Schedule 3.07

	 	-
	 	Subsidiaries
	Schedule 3.08(a)

	 	-
	 	Partnership Group Audited Financial Statements
	Schedule 3.08(b)

	 	-
	 	Partnership Group Unaudited Financial Statements
	Schedule 3.08(c)

	 	-
	 	Partnership Group Year End Adjustments for 2002, 2003 and 2004
	Schedule 3.08(d)

	 	-
	 	Joint Venture Unaudited Financial Statements
	Schedule 3.08(e)

	 	-
	 	Joint Venture Year End Adjustments
	Schedule 3.08(f)

	 	-
	 	Internal Control Exceptions
	Schedule 3.09

	 	-
	 	Absence of Certain Changes
	Schedule 3.10

	 	-
	 	Intercompany Accounts
	Schedule 3.11

	 	-
	 	Material Contracts
	Schedule 3.12

	 	-
	 	Litigation (Sellers)
	Schedule 3.13

	 	-
	 	Permits and Licenses
	Schedule 3.14(a)

	 	-
	 	Intellectual Property Rights
	Schedule 3.14(b)

	 	-
	 	Intellectual Property Right Agreements
	Schedule 3.15

	 	 	 	Insurance Policies
	Schedule 3.17

	 	-
	 	Employees
	Schedule 3.18

	 	-
	 	Employee Benefit Plans
	Schedule 3.19

	 	-
	 	Gas Regulatory Matters
	Schedule 3.20

	 	-
	 	Tax Matters
	Schedule 3.21

	 	-
	 	Environmental Matters
	Schedule 3.21(c)

	 	 	 	Environmental Reports
	Schedule 3.21(d)

	 	-
	 	Hazardous Materials
	Schedule 3.21(e)

	 	-
	 	Discontinued Real Property
	Schedule 3.22

	 	-
	 	Preferential Rights
	Schedule 3.23

	 	-
	 	Letters of Credit
	Schedule 3.24(a)

	 	-
	 	Owned Real Property
	Schedule 3.24(b)

	 	-
	 	Leased Real Property
	Schedule 4.04

	 	-
	 	Certain Consents
	Schedule 4.06

	 	-
	 	Litigation (Buyer)
	Schedule 5.01

	 	-
	 	Conduct of Partnership Group
	Schedule 5.01(d)

	 	-
	 	Capital Expenditures
	Schedule 7.12

	 	-
	 	McCleod Right of Way Title Issue

iv

 

PURCHASE AGREEMENT

     AGREEMENT dated as of September 6, 2005 among Prism Gas Systems I, L.P., a Texas limited
partnership (the “Partnership”), for the limited purpose of making certain representations and
warranties in Article 3, Martin Operating Partnership L.P., a Delaware limited partnership
(“Buyer”), and Natural Gas Partners V, L.P., a Delaware limited partnership, Robert E. Dunn,
William J. Diehnelt, Gene A. Adams, Philip D. Gettig, Sharon L. Taylor and Scott A. Southard
(“Sellers”).

W I T N E S S E T H :

     WHEREAS, the Partnership provides directly and indirectly a variety of gathering and
processing services to natural gas producers in Texas and is also engaged in the marketing of
natural gas liquids and residue gas; and

     WHEREAS, Sellers are the record and beneficial owners of the Interests and desire to sell the
Interests to Buyer, and Buyer desires to purchase the Interests from Sellers, upon the terms and
subject to the conditions hereinafter set forth;

     The parties hereto agree as follows:

ARTICLE 1

Definitions

     Section 1.01. Definitions.

     (a) The following terms, as used herein, have the following meanings:

     “Administaff” shall mean Administaff Companies II, L.P., a Delaware limited partnership.

     “Affiliate” means, with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under common control with such Person; provided that neither the
Partnership nor the Partnership Group nor any Subsidiary shall be considered an Affiliate of
Sellers.

     “Applicable Law” means, with respect to any Person, any federal, state or local law
(statutory, common or otherwise), constitution, treaty, convention, ordinance, code, rule,
regulation, executive order, injunction, judgment, decree, ruling, or other similar requirement
enacted, adopted, promulgated, or applied by a Governmental Authority that is binding upon such
Person.

     “Bank Credit Agreement” means the Credit Agreement, dated November 5, 2003, by and among the
Partnership, the General Partner, and Fleet National Bank, as bank, Fleet National Bank, as
administrative agent, and Fleet Securities, Inc., as arranger and book manager, as the same may be
amended and supplemented.

     “Base Purchase Price” means the aggregate sum of $94.5 million.

     “Business Day” means a day, other than Saturday, Sunday or other day on which commercial banks
in New York, New York are authorized or required by law to close.

     “Business” means the conduct of gathering, processing, fractionating, treating and stabilizing
services to natural gas producers in Texas and Louisiana and the marketing of natural gas liquids
and residue gas as currently conducted by the Partnership Group and the Joint Ventures.

     “Claims” means any action, suit, proceeding, hearing, investigation, litigation, charge,
complaint, claim, Environmental Action, demand or threat.

     “Closing Date” means the date of the Closing, which date shall for all purposes be the
effective date of the transactions contemplated hereunder.

1

 

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Damages” means any and all assessments, losses, damages, liabilities, judgments, settlements,
penalties, costs, and expenses (including reasonable attorneys’ fees and expenses), of any nature
whatsoever, whether actual or consequential, including any Losses.

     “Easements” shall mean easements, licenses, rights-of-way or other similar interests relating
to the Real Property.

     “Employee Plans” shall mean any bonus, deferred compensation, incentive compensation, stock
purchase, stock option, employment, consulting, severance or termination pay, hospitalization or
other medical, life or other insurance, supplemental unemployment benefit, profit sharing, pension
or retirement plan, program, agreement or arrangement, or any other benefit plan of any kind
whatsoever that is provided to employees or former employees of the Partnership or their
beneficiaries, and each other “employee benefit plan” as defined in Section 3(3) of ERISA, whether
formal or informal, written or oral, and whether contributed to, or required to be contributed to,
by the Partnership.

     “Environmental Action” means any administrative, regulatory or judicial action, suit, Claim,
notice of non-compliance or violation, investigation, request for information, proceeding, consent
order or consent agreement by any Person relating in any way to any Environmental Law or any demand
or threat with respect to any of the foregoing.

     “Environmental Laws” means any and all Applicable Laws, including but not limited to the
Comprehensive Environmental Response Compensation and Liability Act, 42 U.S.C. §§ 9601 et seq., in
each case as in effect on the date hereof, related to the protection of the environment or human
health, including workplace safety.

     “Environmental Permits” means all Permits, authorizations, consents, approvals and
registrations issued under Environmental Laws.

     “Equity Securities” means (i) with respect to any corporation, all shares, interests,
participations or other equivalents of capital stock of a corporation, however designated, and any
warrants, options or other rights to purchase or acquire any such capital stock and any securities
convertible into or exchangeable or exercisable for any such capital stock, (ii) with respect to
any partnership, all partnership interests, participations or other equivalents of partnership
interests of a partnership, however designated, and any warrants, options or other rights to
purchase or acquire any such partnership interests and any securities convertible into or
exchangeable or exercisable for any such partnership interests and (iii) with respect to any
limited liability company, all units, interests, participations or other equivalents of membership
interests of a limited liability company, however designated, and any warrants, options or other
rights to purchase or acquire any such membership interests and any securities convertible into or
exchangeable or exercisable for any such membership interests.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended and the rules
and regulations promulgated thereunder.

     “ERISA Affiliate” means any other entity which, together with the Partnership would be treated
as a single employer under Section 414 of the Code.

     “GAAP” means generally accepted accounting principles in the United States applied on a
consistent basis.

     “General Partner” means Prism Gas Systems GP, L.L.C., a Texas limited liability company.

     “Governmental Authority” means any federal, state or local governmental authority, department,
court, agency or official, including any political subdivision thereof.

2

 

     “Hazardous Substance” means any solid, liquid, or gaseous, substance that is listed, defined,
or regulated as a “hazardous material,” “hazardous waste,” “solid waste,” “hazardous substance,”
“toxic substance,” “pollutant,” or “contaminant,” or otherwise classified as hazardous or toxic, in
or pursuant to any Environmental Law, including but not limited to, asbestos, polychlorinated
biphenyls, radon, urea formaldehyde foam insulation, explosives, or radioactive materials, or any
petroleum, hydrocarbons, hydrocarbon products, natural gas liquids, crude oil or any components,
fractions, or derivatives thereof, oil or gas exploration or production waste, natural gas, or
synthetic gas, or any mixtures thereof.

     “Hedging Transaction” means any futures, hedge, swap, collar, put, call, floor, cap, option or
other contract that is intended to benefit from, relate to or reduce or eliminate the risk of
fluctuations in the price of commodities, including hydrocarbons, interest rates, currencies or
securities.

     “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

     “Indebtedness” of any Person means any obligations of such Person (a) for borrowed money, (b)
evidenced by notes, bonds, indentures or similar instruments, (c) for the deferred purchase price
of goods and services (other than trade payables incurred in the ordinary course of business), (d)
under capital leases, (e) any other indebtedness required to be classified as such under GAAP, and
(f) in the nature of guarantees of the obligations described in clauses (a) through (e) above of
any other Person.

     “Intellectual Property Rights” means any Software, trademark, service mark, trade name, mask
work, invention, patent, trade secret, copyright, trade dress, know-how (including any
registrations or applications for registration of any of the foregoing) or any other similar type
of proprietary intellectual property right.

     “Interests” means all of the outstanding membership interests of the General Partner and all
of the outstanding limited partner interests of the Partnership, including any option, warrant or
similar instrument permitting any Person to acquire any such membership or limited partner
interests at any time.

     “Investment” means, with respect to any Person, any payment, loan, advance or contribution of
any amount to any other Persons or any agreement or commitment to do any of the foregoing, and in
any event will include (i) any direct or indirect purchase or other acquisition of any notes,
obligations, instruments or Equity Securities and (ii) any capital contribution to any other
Person.

     “Joint Venture” or “Joint Ventures” means Waskom Gas Processing Company, a Texas general
partnership (“Waskom”), Matagorda System (“Matagorda”) and Panther Interstate Pipeline Energy,
L.L.C., a Texas limited liability company (“Pipe”).

     “Knowledge of Buyer”, “Buyer’s Knowledge” or any other similar knowledge qualification in this
Agreement means to the actual knowledge, after reasonable inquiry, of Ruben S. Martin, Jeffery A.
Ballew or Robert D. Bondurant.

     “Knowledge of Sellers”, “Sellers’ Knowledge” or any other similar knowledge qualification in
this Agreement means to the actual knowledge, after reasonable inquiry, of Robert E. Dunn, William
J. Diehnelt, Gene A. Adams, Philip D. Gettig, Sharon L. Taylor and Scott A. Southard.

     “Liability” means all Indebtedness, Claims, legal proceedings, obligations, duties, warranties
or liabilities, including, without limitation, STRICT LIABILITY, of any nature (including any
undisclosed, unfixed, unknown, unliquidated, unsecured, unmatured, unaccrued, unasserted,
contingent, conditional, inchoate, implied, vicarious, joint, several or secondary liabilities),
regardless of whether any such Indebtedness, Claims, legal proceedings, obligations, duties,
warranties or liabilities would be required to be disclosed on a balance sheet prepared in
accordance with GAAP or is known as of the Closing.

     “Lien” means, with respect to any property or asset, any mortgage, lien, pledge, charge,
security interest, encumbrance, adverse claim, right of first refusal or purchase option in respect
of such property or asset.

3

 

     “Loss” or “Losses” means any loss, damage, injury, harm, detriment, Liability, diminution in
value, exposure, claim, demand, proceeding, settlement, judgment, award, punitive damage award,
fine, penalty, fee, charge, cost or expense (including, without limitation, reasonable costs of
attempting to avoid or in opposing the imposition thereof, interest, penalties, costs of
preparation and investigation, and the reasonable fees, disbursements and expenses of attorneys,
accountants and other professional advisors), as well as with respect to compliance with the
requirements of environmental law, expenses of remediation and any other remedial, removal,
response, abatement, cleanup, investigative, monitoring, or record keeping costs and expenses.

     “Material Adverse Effect” means any event which has a material adverse effect on the business,
assets, financial condition or results of operations of the Business, the Partnership Group or the
Joint Ventures, taken as a whole, except to the extent resulting from or arising in connection with
(i) this Agreement or the transactions contemplated hereby, (ii) changes or conditions affecting
the natural gas gathering, processing, aggregation or marketing industries generally (including,
without limitation, changes in hydrocarbon pricing and the depletion of reserves), provided,
however, that such changes or conditions do not have a disproportionate impact on the Business, the
Partnership Group or the Joint Ventures when compared to other participants in such industries,
taken as a whole, (iii) changes in economic, regulatory or political conditions generally,
provided, however, that such changes or conditions do not have a disproportionate impact on the
Business, the Partnership Group or the Joint Ventures when compared to other participants in the
gas gathering, processing, aggregation or marketing industries, taken as a whole, (iv) any other
matter set forth in the Schedules hereto, except to the extent of any adverse developments with
respect to such matters that arise after the date hereof, or (v) any ordinary course decrease in
inlet volumes into plants or gathering systems or any curtailment in transportation volumes.

     “NGP” means Natural Gas Partners V, L.P., a Delaware limited partnership.

     “Partnership Group” means the Partnership, the General Partner, and the Subsidiaries.

     “Partnership Intellectual Property Rights” means all Intellectual Property Rights owned by the
Partnership Group.

     “Permitted Liens” means (i) Liens disclosed on Schedule 1.01, (ii) Liens for taxes,
assessments and similar charges that are not yet due or are being contested in good faith, and in
the case of those items which are being contested, that do not exceed $250,000 in the aggregate,
(iii) mechanic’s, materialman’s, carrier’s, repairer’s and other similar Liens arising or incurred
in the ordinary course of business or that are not yet due and payable or are being contested in
good faith, and in the case of those items which are being contested, that do not exceed $250,000
in the aggregate, (iv) published zoning, municipal planning, building codes or other applicable
laws, rules, regulations, permits or ordinances regulating the use, development or occupancy of
real property, (v) recorded building and use restrictions and covenants, and (vi) recorded
easements and rights-of-way that are necessary for utilities and other similar services on real
property, which do not restrict the present use of such real property.

     “Person” means an individual, corporation, partnership, limited liability company,
association, trust or other entity or organization, including a government or political subdivision
or an agency or instrumentality thereof.

     “Real Property” means any real property which the Partnership Group and the Joint Ventures
owns, leases, operates or subleases.

     “Software” means any computer software (including, without limitation, source code, object
code, firmware, operating systems and specifications) owned or licensed by each of the Partnership
Group and the Joint Ventures.

     “Subsidiary” or “Subsidiaries,” as appropriate, means any entity, or all of the entities, as
appropriate, of which membership interests, securities or other ownership interests having the
power to designate the managing member or ordinary voting power to elect a majority of the board of
directors or other persons performing similar
functions are directly or indirectly owned by the Partnership or the General Partner and
specifically include McLeod Gas Gathering and Processing Company, L.L.C., a Louisiana limited
liability company (“McLeod”), Prism Gas

4

 

Systems, Inc., a Delaware corporation (“Prism Gas”), and
Prism Gulf Coast Systems L.L.C., a Texas limited liability company (“Prism Gulf Coast”).

     “Title Defect” means (a) any title defect, Lien other than a Permitted Lien or any liens
associated with the Bank Credit Agreement (which shall be released at Closing), that causes any
member of the Partnership Group or any Joint Ventures to not have good and indefeasible title, free
and clear of all Liens other than Permitted Liens, to any of the Real Property (including the
buildings and improvements thereon), Permits or leases relating to Real Property, (b) the extent to
which the Easements do not grant all rights reasonably necessary for the operation, maintenance,
repair, and replacement of all the properties, facilities or assets of the Partnership Group or the
Joint Ventures, or (c) any issues associated with access, encroachments, zoning or land-use
restriction or other matters relating to the Real Property that would restrict the Buyer’s, the
Partnership Group’s or the Joint Ventures’ ability to operate and conduct the Business as it is
presently conducted or that would reduce the value of any of the Real Property; provided that
“Title Defect” shall not include any matter that would otherwise be a Title Defect if (x) the
related Title Defect Amount is individually $100,000 or less, (y) it has been cured by Sellers to
the reasonable satisfaction of Buyer prior to the Closing Date or (z) it is not set forth in a
Title Defect Notice.

     “Title Defect Amount” means the cost of curing a Title Defect, or if such Title Defect cannot
be cured, any Damages resulting from the existence of such Title Defect. For purposes of
calculating a Title Defect Amount, the parties shall value all assets affected by a Title Defect,
including rights-of-way, surface leases and fee properties, at the lesser of fair market value or
the cost to cure.

     “Working Capital” means the consolidated current assets less the consolidated current
liabilities of the Partnership Group that are balance sheet items in accordance with GAAP, each as
calculated in accordance with GAAP as of the Closing Date on a basis consistent with the Audited
Financial Statements, including as current liabilities (a) any accrued and unpaid legal,
accounting, banking or other advisory fees, costs and expenses incurred by the Partnership Group
through the Closing Date in connection with this Agreement, and (b) any Tax payable accruals on the
books of the Partnership Group as of the Closing Date, including the updated Tax payable accrual
determined based on the Appraisal required under Section 7.15 and reflected on the June Financial
Statements; provided, however, that Working Capital shall specifically exclude any assets
associated with the Earnest Money and exclude any liabilities or obligations associated with the
(i) Bank Credit Agreement and (ii) any Hedging Transactions.

     (b) Each of the following terms is defined in the Section set forth opposite such term:

	 	 	 	 	 
	Term	 	Section
	Accounting Firm

	 	 	7.08	 
	Accounting Referee

	 	 	2.03	(c)
	Administaff Agreement

	 	 	3.18	 
	Administaff Plans

	 	 	3.18	 
	Agreed-Upon Title Defect

	 	 	2.05	(f)
	Agreed-Upon Title Defect Amount

	 	 	2.05	(f)
	Allocation Statement

	 	 	2.06	 
	Appraisal

	 	 	7.15	 
	Audited Financial Statements

	 	 	3.08	 
	Buyer

	 	Introduction

	Buyer Indemnitees

	 	 	11.01	 
	Buyer 401(k) Plan

	 	 	8.03	(e)
	Closing

	 	 	2.02	 
	Closing Date Balance Sheet

	 	 	2.03	(a)
	Common Units

	 	 	2.02	(a)
	Contest Notice

	 	 	11.03	(b)
	Designated Person

	 	 	6.03	 

5

 

	 	 	 	 	 
	Term	 	Section
	Earnest Money

	 	 	2.07	 
	Easements

	 	Definition of

	 

	 	Permitted Liens

	Employees

	 	 	3.17	 
	Environmental Policy

	 	 	5.01	(h)
	Escrow Agent

	 	 	2.07	 
	Escrow Agreement

	 	 	2.07	 
	Estimated Purchase Price

	 	 	2.01	(c)
	Estimated Working Capital

	 	 	2.01	(c)
	Existing Indemnified Parties

	 	 	7.06	 
	Final Working Capital

	 	 	2.04	(a)
	Financial Statements

	 	 	3.08	 
	Indemnifying Party

	 	 	11.03	 
	Indemnification Agreement

	 	 	7.07	 
	Indemnitee

	 	 	11.03	(a)
	Joint Venture Financial Statements

	 	 	3.08	 
	Joint Venture Plans

	 	 	3.18	 
	June Financial Statements

	 	 	7.14	(c)
	Latest Balance Sheet

	 	 	3.08	 
	Latest Balance Sheet Date

	 	 	3.08	 
	Leased Real Property

	 	 	3.24	(b)
	Matagorda

	 	Definition of Joint

	 

	 	Ventures

	McLeod

	 	Definition of

	 

	 	Subsidiaries

	Notice of Claim

	 	 	11.03	(a)
	Notice of Disagreement

	 	 	2.05	(c)
	Notice of Liability

	 	 	11.03	(b)
	Owned Real Property

	 	 	3.24	(a)
	Partnership

	 	Introduction

	Partnership Group Plans

	 	 	3.18	(a)
	Partnership 401(k) Plan

	 	 	8.03	(d)
	Partnership Securities

	 	 	3.05	(b)
	Payment Schedule

	 	 	2.02	(a)
	Phase I Environmental Assessment

	 	 	8.02	 
	Permits

	 	 	3.13	 
	Pipe

	 	Definition of Joint

	 

	 	Ventures

	Prism Gas

	 	Definition of

	 

	 	Subsidiaries

	Prism Gulf Coast

	 	Definition of

	 

	 	Subsidiaries

	Purchase Price

	 	 	2.01	(b)
	Retained Employees

	 	 	3.17	 
	Returns

	 	 	3.20	 
	Seller Pro-Rata Amount

	 	 	11.05	 
	Sellers

	 	Introduction

	Sellers Indemnitees

	 	 	11.02	 
	Sellers’ Representatives

	 	 	7.05	 
	Tax

	 	 	3.20	 
	Tax Allocation Referee

	 	 	2.06	 
	Insurance Policy

	 	 	7.16	 
	Title Company

	 	 	2.05	(a)
	Title Defect Arbitrator

	 	 	2.05	(d)
	Title Defect Notice

	 	 	2.05	(b)
	2005 Short Period

	 	 	7.04	(b)

6

 

	 	 	 	 	 
	Term	 	Section
	Unaudited Financial Statements

	 	 	3.08	 
	Waskom

	 	Definition of Joint

	 

	 	Ventures

	Waskom Site

	 	 	2.05	(a)
	Waskom Title Policy

	 	 	2.05	(a)

Section 1.02. Other Definitional and Interpretative Provisions. Unless specified otherwise, in
this Agreement the obligations of any party consisting of more than one person are joint and
several. The words “hereof”, “herein”, “hereby” and “hereunder” and words of like import used in
this Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement. The captions herein are included for convenience of reference only and shall be ignored
in the construction or interpretation hereof. References to Articles, Sections, Exhibits and
Schedules are to Articles, Sections, Exhibits and Schedules of this Agreement unless otherwise
specified. All Exhibits and Schedules annexed hereto or referred to herein are hereby incorporated
in and made a part of this Agreement as if set forth in full herein. Any capitalized terms used in
any Exhibit or Schedule but not otherwise defined therein, shall have the meaning as defined in
this Agreement. Any singular term in this Agreement shall be deemed to include the plural, and any
plural term the singular. Whenever the words “include”, “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without limitation”, whether or not
they are in fact followed by those words or words of like import. “Writing”, “written” and
comparable terms refer to printing, typing and other means of reproducing words (including
electronic media) in a visible form. References to any agreement or contract are to that agreement
or contract as amended, modified or supplemented from time to time in accordance with the terms
hereof and thereof. References from or through any date mean, unless otherwise specified, from and
including or through and including, respectively.

ARTICLE 2

Purchase and Sale 

Section 2.01. Purchase and Sale.

     (a) Upon the terms and subject to the conditions of this Agreement, Sellers agree to sell to
Buyer, and Buyer agrees to purchase from Sellers, the Interests at the Closing.

     (b) The purchase price for the Interests is (i) the Base Purchase Price, (ii) plus an amount
equal to the increase in net cash used in investment activity from the Latest Balance Sheet Date to
the Closing Date, (iii) minus the aggregate amount of Agreed-Upon Title Defect Amounts to be taken
into account as an adjustment pursuant to Section 2.05(f), (iv) plus (or minus, to the extent a
negative number) an amount equal to Working Capital as of the Closing Date, (v) minus the aggregate
amount of all outstanding obligations under or relating to the Bank Credit Agreement as of the
Closing Date, and (vi) in the event Buyer elects not to obtain the Insurance Policy pursuant to
Section 7.16(c), minus an amount equal to 32.5% of the premium that would have been paid under the
Insurance Policy, but for Buyer’s election not to obtain the Insurance Policy (the “Purchase
Price”).

     (c) No later than three Business Days prior to the Closing Date, Sellers shall deliver to
Buyer a statement setting forth the Partnership’s good faith estimate of (i) the Working Capital
(the “Estimated Working Capital”) and (ii) the Purchase Price (the “Estimated Purchase Price”), and
a reasonably detailed computation of such estimates, including an estimated consolidated balance
sheet for the Partnership and Subsidiaries as of the Closing Date, supporting schedules and other
relevant information, in each case prepared in accordance with GAAP on a basis consistent with the
December 31, 2004 consolidated balance sheet included in the Audited Financial Statements. Buyer
shall be entitled to conduct a timely review of such information and to provide good faith,
reasonable objections to any such calculations not later than one Business Day prior to the Closing
Date. Subject to resolution of any such good faith, reasonable objections, the Estimated Purchase
Price shall be paid as provided in Section 2.02 and shall be subject to further adjustment
post-Closing as provided in Section 2.04.

Section 2.02. Closing. The closing (the “Closing”) of the purchase and sale of the Interests
hereunder shall take place at the offices of Thompson & Knight LLP, 1700 Pacific Avenue, Suite
3300, Dallas, Texas on the fifth Business Day after all of the conditions set forth in Article 9
are satisfied, but in no event any later than October 31, 2005 (which date shall be extended
pursuant to Section 10.01(b)), or at such other time or place as Buyer and Sellers may agree. If
the Closing Date shall occur on a day other than the normal month-end cutoff date for the ordinary

7

 

course preparation of Partnership Group financial information, the parties agree that all items of
income and expense shall be prorated to reflect the relative number of days during the month that
the Business is actually owned by Sellers and Buyer, except to the extent an item of expense
adjusts the Purchase Price (including as reflected in Working Capital). At the Closing:

     (a) Buyer shall deliver to each Seller, in either cash or Common Units of Martin Midstream
Partners L.P. (“Common Units”), its pro rata portion of the Estimated Purchase Price, in the dollar
amounts to be specified in a written document (the “Payment Schedule”) delivered by Sellers to
Buyer not later than ten Business Days prior to Closing. Cash payments shall be made in
immediately available funds by wire transfer to an account of each such Seller with a bank
designated by such Seller by notice to Buyer delivered not later than two Business Days prior to
the Closing Date (or if not so designated, then by certified or official bank check payable in
immediately available funds to the order of each such Seller in such amount). Payments in Common
Units shall be made in the name of each such Seller or its nominee designated by such Seller by
notice to Buyer delivered not later than two Business Days prior to the Closing. The Payment
Schedule shall be prepared to reflect that Buyer is acquiring 100% of the fully diluted equity
ownership interests in the General Partner and the Partnership after giving effect to either the
pre-Closing Date cancellation or exercise, as the case may be, of any options, warrants or similar
rights that any employee, consultant, entity or other third party may have to acquire any equity
ownership interests in any member of the Partnership Group or the Joint Ventures, all of which the
Sellers will cause to be cancelled or exercised, as the case may be, prior to the Closing Date.
Sellers shall provide Buyer with evidence of any such cancellations or exercises not later than one
Business Day prior to the Closing Date. Any Common Units delivered to a Seller hereunder shall be
“restricted securities” within the meaning of federal and state securities laws and each applicable
Seller acknowledges and agrees that such Common Units will not be freely tradable and may not be
sold, pledged, gifted or otherwise transferred or disposed of unless any such transaction is
registered or qualified under applicable federal and state securities laws or such transaction is
exempt from such registration or qualification as evidenced by a written opinion of counsel
addressed to Buyer, which counsel and opinion shall be acceptable to Buyer. Any such Common Units
will bear a restrictive legend to the foregoing effects. Common Units deliverable hereunder shall
be deemed to have a value equal to the average closing price of the Common Units on the NASDAQ over
the ten trading days immediately preceding the date on which Buyer makes a public announcement of
the transaction contemplated by this Agreement and the ten trading days immediately following the
date of such public announcement, excluding in each case the closing price for Common Units on such
public announcement date.

     (b) Buyer shall pay to the lender(s) under the Bank Credit Agreement an amount equal to the
outstanding principal and interest owed by the Partnership under the Bank Credit Agreement as of
the Closing Date in exchange for a full and complete release by such lender(s) of all Liens they
may have on any of the Partnership Group’s assets and the cancellation of the Bank Credit
Agreement.

     (c) The Partnership shall pay all accrued and unpaid legal, accounting, banking or other
advisory fees, costs and expenses incurred by the Partnership Group in connection with this
Agreement or any other services
rendered by any such party through the Closing Date, but accrued and unpaid as of the Closing
Date. Following such payments, Sellers agree that the Partnership Group shall owe no further fees
for any legal, accounting, banking or advisory services rendered through the Closing Date, except
to the extent such fees adjust the Purchase Price (including as reflected in Working Capital).

Section 2.03. Closing Date Balance Sheet.

     (a) As promptly as practicable, but no later than 45 days after the Closing Date, Buyer will
cause to be prepared and delivered to Sellers an actual consolidated balance sheet of the
Partnership and Subsidiaries as of the Closing Date (the “Closing Date Balance Sheet”) and a
certificate based on such Closing Date Balance Sheet setting forth Buyer’s good faith calculation
of the Working Capital. The Closing Date Balance Sheet shall (x) fairly present the consolidated
financial position of the Partnership and Subsidiaries as of the Closing Date in accordance with
GAAP applied on a basis consistent with those used in the preparation of the December 31, 2004
balance sheet included in the Audited Financial Statements, and (y) include line items
substantially consistent with those in such December 31, 2004 balance sheet.

     (b) If Sellers disagree with Buyer’s calculation of the Working Capital delivered pursuant to
Section 2.03(a), Sellers may, within 10 days after delivery of the documents referred to in Section
2.03(a), deliver a notice to

8

 

Buyer disagreeing with such calculation which specifies Sellers’
calculation of such amount and, in reasonable detail, Sellers’ grounds for such disagreement.

     (c) If a notice of disagreement shall be duly delivered pursuant to Section 2.03(b), Buyer and
Sellers shall, during the 15 days following such delivery, use commercially reasonable efforts to
reach agreement on the disputed items or amounts in order to determine, as may be required, the
amount of the Working Capital, which amount shall not be less than the amount thereof shown in
Buyer’s calculation delivered pursuant to Section 2.03(a) nor more than the amount thereof shown in
Sellers’ calculation delivered pursuant to Section 2.03(b). If, during such period, Buyer and
Sellers are unable to reach such agreement, they shall promptly thereafter cause the audit group of
a nationally recognized “Big 4” accounting firm that does not provide tax or audit services to
Buyer, the Partnership Group, the Joint Ventures or any Seller (the “Accounting Referee”) promptly
to review this Agreement and the disputed items or amounts for the purpose of calculating the
Working Capital. Each party shall set forth in writing its estimate of the Working Capital
referred to the Accounting Referee for resolution, and the Accounting Referee shall, as promptly as
practicable, be required to select the position of either one party or the other with respect to
the Working Capital and to communicate such selection to both parties. The costs of the Accounting
Referee shall be borne entirely by the party which does not have its position selected by the
Accounting Referee. The determination of the Accounting Referee shall be final, conclusive and
binding on the parties and shall be enforceable in any court having jurisdiction.

     (d) Buyer and Sellers agree that they will, and cause their respective independent accountants
to and the Partnership Group to, cooperate and assist in the preparation of the Closing Date
Balance Sheet, the calculation of the Working Capital and, if applicable, the reviews referred to
in this Section 2.03, including making available, to the extent necessary, books, records, work
papers and personnel of the Partnership Group.

Section 2.04. Adjustment of the Purchase Price.

     (a) If the Estimated Working Capital exceeds the Final Working Capital (as defined below),
Sellers shall pay to Buyer, as an adjustment to the Purchase Price, in the manner and with interest
as provided in Section 2.04(b), the amount of such excess. If the Final Working Capital exceeds the
Estimated Working Capital, then Buyer shall pay to Sellers as an adjustment to the Purchase Price,
in the manner and with interest as provided in Section 2.04(b), the amount of such excess. The
“Final Working Capital” means the Working Capital (i) as shown in Buyer’s calculation delivered
pursuant to Section 2.03(a), if no notice of disagreement with respect thereto is duly delivered
pursuant to Section 2.03(b); or (ii) if such a notice of disagreement is delivered, (A) as agreed
by Buyer
and Sellers pursuant to Section 2.03, or (B) in the absence of such agreement, as determined
by the Accounting Referee pursuant to Section 2.03(c); provided that in no event shall the Final
Working Capital be less than Buyer’s calculation of the Working Capital delivered pursuant to
Section 2.03(a) or more than Sellers’ calculation of the Working Capital delivered pursuant to
Section 2.03(b).

     (b) Any payment pursuant to Section 2.04(a) shall be made within five days after the Final
Working Capital has been determined (x) in the case of payments made by Buyer, by delivery by Buyer
of immediately available funds, pro rata to each Seller in accordance with the percentages
specified in the Payment Schedule and on a basis consistent with Section 2.02(a), and to the same
bank designated by each such Seller for any cash Closing payments made pursuant to Section 2.02(a),
or if no bank was specified, then by certified or official bank check payable in immediately
available funds to the order of such Seller, or (y) in the case of payments made by Sellers, by
delivery from Sellers (pro rata from each Seller in accordance with the percentages specified in
the Payment Schedule and on a basis consistent with Section 2.02(a) (including utilizing the Common
Unit value established thereunder)) in either immediately available funds or Common Units, and in
the case of cash payments to an account previously designated by Buyer. Payments made pursuant to
Section 2.04(a) shall bear cash interest at the rate of 6% per annum from the Closing Date to the
date of payment.

Section 2.05. Title Defects.

     (a) (i) Buyer may seek to cause LandAmerica Commercial Services, Dallas, Texas (the “Title
Company”) to deliver to Buyer a commitment for a title insurance policy in favor of Buyer with
respect to the Real Property leased by Waskom and comprising Waskom’s gas processing plant located
in Waskom, Texas as more fully described, by a full and complete legal description, in Schedule
2.05(a)(1) hereto (the “Waskom Site”), such

9

 

policy to be a standard form Texas title insurance
policy in favor of Buyer insuring Waskom’s leasehold interest in the Waskom Site (the “Waskom Title
Policy”). Buyer shall be responsible for the payment of all costs and expenses associated with the
issuance of the Waskom Title Policy and Sellers shall use their commercially reasonable efforts to
deliver to the Title Company any affidavits, agreements or other documents or assurances reasonably
necessary to cause the issuance of the Waskom Title Policy. Buyer agrees that it will not delay
the Closing, if all other conditions to the occurrence of the Closing shall have then been
satisfied in accordance with the provisions of this Agreement, due to the unavailability of such
title commitment provided that the provisions of this sentence shall not restrict Buyer’s ability
to object to Title Defects pursuant to Section 2.05(b) below.

          (i) Buyer may seek to cause a Texas registered and licensed professional surveyor identified
by Buyer to deliver to Buyer a current survey with respect to the Waskom Site to meet the
requirements of the Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys jointly
established by the American Land Title Association, the American Congress on Surveying and Mapping
and the National Society of Professional Surveyors. Buyer agrees that it will not delay the
Closing, if all other conditions to the occurrence of the Closing shall have then been satisfied in
accordance with the provisions of this Agreement, due to the unavailability of such survey within
the time frame specified above, provided that the provisions of this sentence shall not restrict
Buyer’s ability to object to any Title Defects pursuant to Section 2.05(b) below.

     (b) As soon as reasonably practicable following the date of this Agreement, and in no event
later than 15 Business Days prior to the Closing Date, Buyer shall deliver to Sellers written
notices identifying each matter that it believes in good faith to be a Title Defect, together with
a reasonable, good faith estimate of the associated Title Defect Amount for each such alleged Title
Defect, and reasonable written documentation to support Buyer’s claims of each such Title Defect
(the “Title Defect Notice”). In order for Sellers to review the alleged Title Defects listed in
the Title Defect Notice, Buyer will provide to Sellers and their representatives copies of any
documents used to determine the existence of a Title Defect and the estimated Title Defect Amount.

     (c) If Sellers disagree with the existence of a Title Defect or the associated Title Defect
Amount, then Sellers shall notify Buyer of such disagreement in writing (a “Notice of
Disagreement”) within 5 Business Days after their receipt of the applicable Title Defect Notice.
Such Notice of Disagreement shall specify in reasonable detail Sellers’ grounds for such
disagreement, the Title Defect Amount estimated by Sellers therefore, or both, as the case may be.
To the extent Sellers do not contest a Title Defect or a Title Defect Amount in a Notice of
Disagreement within 5 Business Days after receipt of the applicable Title Defect Notice,
Sellers shall be deemed to have accepted the existence of such Title Defect or Title Defect Amount,
which shall be final, binding and conclusive for all purposes hereunder.

     (d) If a Notice of Disagreement is timely provided by Sellers, Buyer and Sellers shall use
commercially reasonable efforts for a period of 3 Business Days after delivery of such Notice of
Disagreement (or such longer period as they may mutually agree) to resolve any disagreements with
respect to the existence of any Title Defect or Title Defect Amount contested in the Notice of
Disagreement. If, at the end of such period, they are unable to resolve such disagreements, then,
upon the written request of either party, Sellers and Buyer agree that they will turn the dispute
over to an independent, experienced real estate attorney who is practicing law with a regional law
firm that is nationally recognized in the midstream oil and gas industry, that is mutually agreed
upon by Sellers and Buyer (the “Title Defect Arbitrator”), to resolve any remaining disagreements.

     (e) The Title Defect Arbitrator shall determine as promptly as practicable (but in any event
within 10 Business Days) following the date on which such dispute is referred to the Title Defect
Arbitrator the existence of any alleged Title Defect or the disputed Title Defect Amount, as the
case may require, identified in the Notice of Disagreement and not previously resolved by the
parties. Each party shall set forth in writing its position regarding the existence of each alleged
Title Defect and Title Defect Amount referred to the Title Defect Arbitrator for resolution, and
the Title Defect Arbitrator shall be required to select the position of either one party or the
other with respect to each such Title Defect or Title Defect Amount, as the case may require. The
costs of the Title Defect Arbitrator shall be allocated by the Title Defect Arbitrator between the
parties based upon the positions on the Title Defects asserted by the parties ultimately selected
by the Title Defect Arbitrator. The determination of the Title Defect Arbitrator shall be final,
conclusive and binding on the parties and shall be enforceable in any court having jurisdiction.

10

 

     (f) As used in this Agreement, an “Agreed-Upon Title Defect” shall mean any of (i) a Title
Defect that is not contested under any Notice of Disagreement, (ii) a Title Defect that is mutually
agreed upon or deemed agreed upon by Buyer and Sellers or (iii) a Title Defect recognized as such
by determination of the Title Defect Arbitrator pursuant to Section 2.05(e) above. An “Agreed-Upon
Title Defect Amount” shall mean any of (i) a Title Defect Amount that is not contested under any
Notice of Disagreement, (ii) a Title Defect Amount that is mutually agreed upon or deemed agreed
upon by Buyer and Sellers or (iii) a Title Defect Amount recognized in a determination of the Title
Defect Arbitrator pursuant to Section 2.05(e) above.

     (g) At Closing, the Purchase Price shall be reduced by the amount of all Agreed-Upon Title
Defect Amounts. In the event there is any dispute as to any Title Defect or Title Defect Amount
which has not been resolved by the Title Defect Arbitrator prior to Closing, the Closing shall be
delayed until the Title Defect Arbitrator has made a determination with respect to such Title
Defect or Title Defect Amount. In addition, if the total of the aggregate Agreed-Upon Title Defect
Amounts exceeds $5,000,000, then either Buyer or Sellers, respectively, may terminate this
Agreement and the Earnest Money shall be paid by the Escrow Agent to Buyer.

Section 2.06. Allocation of Purchase Price. At least 15 days before the Closing, Buyer shall
deliver to Sellers a statement (the “Allocation Statement”), allocating the Purchase Price (plus
the liabilities of the Partnership Group to the extent properly taken into account under Section
1060 of the Code) among the assets of the Partnership Group in accordance with Section 1060 of the
Code. If within 10 days after the delivery of the Allocation Statement Sellers notify Buyer in
writing that Sellers object to the allocation set forth in the Allocation Statement, Buyer and
Sellers shall use commercially reasonable efforts to resolve such dispute prior to Closing. In the
event that Buyer and Sellers are unable to resolve such dispute prior to Closing, Buyer and Sellers
shall jointly retain the tax group of a nationally recognized “Big 4” accounting firm that does not
provide tax or audit services to Buyer, the Partnership Group, the Joint Ventures or any Seller
(the “Tax Allocation Referee”) to resolve the disputed items. Upon resolution of the disputed
items, the allocation reflected on the Allocation Statement shall be adjusted to reflect such
resolution. The costs, fees and expenses of the Tax Allocation Referee shall be borne equally by
Buyer and Sellers. Upon resolution of the disputed items, the allocation reflected on the
Allocation Statement shall be adjusted to reflect such resolution. Sellers and Buyer agree to (i)
be bound by the Allocation Statement and (ii) act in accordance with the Allocation Statement in
the preparation, filing and audit of any Return (including filing Form 8594, if applicable, with
its federal income Tax Return for the taxable year that includes the date of the Closing).

Section 2.07. Earnest Money. Contemporaneous with Buyer’s execution of this Agreement, Buyer shall
post with Bank of New York Trust Company of Florida, N.A., as escrow agent (the “Escrow Agent”), an
amount equal to $5,000,000 (the “Earnest Money”), pursuant to the terms of the Escrow Agreement
attached hereto as Exhibit A (the “Escrow Agreement”). In the event the Closing occurs,
the Earnest Money shall be paid by the Escrow Agent to the Sellers in accordance with Section
2.02(a) and credited against the amount to be paid by Buyer to Sellers pursuant to Section 2.02(a).
If the Closing does not occur, the Earnest Money shall be paid by the Escrow Agent to the
Partnership or paid by the Escrow Agent to Buyer in accordance with the remaining provisions of
this Section 2.07. In the event Buyer breaches this Agreement by failing or refusing to close the
transaction contemplated hereby on the Closing Date and each of the conditions contained in
Sections 9.01 and 9.02 (other than the condition set forth in Section 9.02(f)) otherwise has been
either fulfilled (or was capable of being fulfilled, absent Buyer’s breach, in the case of the
condition in Section 9.01(c)), or waived, the Escrow Agent shall pay the Earnest Money to the
Partnership as damages. In addition, in the event Buyer does not close solely on account of a
failure of the condition in Section 9.02(f) to be satisfied, the Escrow Agent shall pay the Earnest
Money to the Partnership as damages. In all other circumstances, including in the event where
Buyer terminates this Agreement pursuant to Section 2.05(g), the Earnest Money shall be paid by the
Escrow Agent to Buyer. The Earnest Money shall be invested by the Escrow Agent pursuant to the
terms of the Escrow Agreement and any investment income thereon shall be payable to Buyer or as
otherwise directed by Buyer.

Section 2.08. Additional Damage Payment. In the event Section 2.07 requires the Escrow Agent to
pay the Earnest Money to the Partnership as damages, the Buyer shall also pay to the Partnership,
as damages, such additional amount, if any, that represents the sum of (a) the excess of: (i) the
increased tax liability of Partnership (i.e., the increase in the Tax accrual on the Partnership’s
books and records) as a result of the Appraisal, over (ii) the Earnest Money amount and (b) any
amount expended, or required to be expended, by the Partnership or Sellers to procure, or cancel
procurement of: (x) the June Financial Statements or other financial statements discussed in
Section 7.14, (y) the Appraisal, and (z) the Insurance Policy. It is expressly agreed and
acknowledged by all parties that nothing
 

11

 

in this Section 2.08 or in Section 2.07 should be
construed to limit the remedies of Sellers under Section 10.02, including the ability to recover
any additional damages from Buyer in the event of Buyer’s breach of this Agreement, except in the
event Buyer does not close solely on account of a failure of the condition in Section 9.02(f) to be
satisfied, in which case the remedies provided in this Section 2.08 and in Section 2.07 shall be
the exclusive remedies of the Partnership and Sellers.

ARTICLE 3

Representations and Warranties of Sellers 

     Except as set forth in the Schedules hereto, (i) each Seller, severally only with respect to
itself, with respect to the representations and warranties in Sections 3.02, 3.03, 3.04, 3.06 and
3.29, and (ii) the Partnership, with respect to the representations and warranties in Sections
3.01, 3.05 and 3.07 to 3.28 of this Article 3, represents and warrants to Buyer as of the date
hereof that:

Section 3.01. Existence and Power. The Partnership as a limited partnership and the General
Partner as a limited liability company, as well as the Subsidiaries and the Joint Ventures as
either corporations, limited liability companies or partnerships, are duly organized, validly
existing and in good standing under the laws of Texas and they and/or the Partnership Group have
all powers and all governmental licenses, authorizations, permits, consents and approvals required
to carry on its business as now conducted and to own, lease, and operate all properties and assets
now owned, leased or operated by it, except for those licenses, authorizations, permits, consents
and approvals the absence of which would not be material to the conduct of the Business. Each of
the Partnership, the General Partner, the Subsidiaries and the Joint Ventures is duly qualified to
do business as a foreign Person and is in good standing in each jurisdiction where such
qualification is necessary, except for those jurisdictions where failure to be so qualified would
not, individually or in the aggregate, have a Material Adverse Effect.

Section 3.02. Sellers Authorization. The execution, delivery and performance by such Seller of
this Agreement and the consummation of the transactions contemplated hereby are within such
Seller’s powers and have been duly authorized by all necessary action on the part of such Seller.
This Agreement constitutes a valid and binding agreement of such Seller.

Section 3.03. Governmental Authorization. The execution, delivery and performance by such Seller
of this Agreement and the consummation of the transactions contemplated hereby require no action,
notice, filing, authorization, consent, waiver or approval by or in respect of, a Governmental
Authority other than (i) compliance with any applicable requirements of the HSR Act and (ii) any
such action, notice, filing, authorization, consent, waiver or approval, as to which the failure to
make or obtain would not have a Material Adverse Effect.

Section 3.04. Noncontravention. The execution, delivery and performance by such Seller of this
Agreement and the consummation of the transactions contemplated hereby do not and will not (i)
violate the certificate of incorporation, certificate of organization, limited partnership or
limited liability company operating agreement of such Seller or the Partnership Group or the Joint
Ventures, (ii) assuming compliance with the matters referred to in Section 3.03, violate any
Applicable Law that is material to the business of such Seller or the Partnership Group or the
Joint Ventures or their respective assets, (iii) except as disclosed in Schedule 3.04 or as to
matters which would not reasonably be expected to be material to the Business, require any
authorization, consent, waiver, or approval, or other action by any Person under, constitute a
default under, or give rise to any right of termination, modification, cancellation or acceleration
of any right or obligation of such Seller or the Partnership Group or the Joint Ventures or to a
loss of any benefit to which such Seller or the Partnership Group or any Joint Venture is entitled
under any provision of any agreement, contract, lease, license, instrument, decree, judgment or
other arrangement binding upon such Seller or the Partnership Group or any Joint Venture, or (iv)
result in the creation or imposition of any Lien on any asset of the Partnership Group or any Joint
Venture, except for any Permitted Liens.

Section 3.05. Capitalization.

     (a) The Interests, all of which are held by the Sellers, together with the outstanding general
partner interests of the Partnership, all of which are held by the General Partner, and the
outstanding capital stock or membership interests of each of the Subsidiaries, all of which are
held by the Partnership, directly or indirectly, constitute all of the outstanding capital stock,
membership and partnership interests of the Partnership Group.

12

 

     (b) All outstanding capital stock, membership interests and partnership interests of the
Partnership Group have been duly authorized and validly issued and are fully paid and
non-assessable and issued free from any violation of, or subject to, any preemptive rights or
rights of subscription. Except as set forth in Schedule 3.05(b), there are no outstanding (i)
securities or interests of the Partnership Group (other than the Interests, as defined herein, the
outstanding general partner interests of the Partnership held by the General Partner and the
outstanding capital stock or membership interests of the Subsidiaries held by the Partnership,
directly or indirectly), (ii) securities or interests of the Partnership Group convertible into or
exchangeable for Interests or other securities of the Partnership Group, or (iii) options or other
rights to acquire from the Partnership Group, or other obligations of the Partnership Group to
issue, any equity interests, voting securities or securities convertible into or exchangeable for
equity interests or voting securities of the Partnership Group (the items in clauses
3.05(b)(i),(ii) and (iii) being referred to collectively as the “Partnership Securities”). There
are no outstanding obligations of the Partnership Group to repurchase, redeem or otherwise acquire
any Partnership Securities.

     (c) Except as set forth in Schedule 3.05(c), no outstanding equity interests or capital stock,
or interest or stock issuable upon exercise or exchange of any outstanding options, warrants, or
rights, or other interests or stock issuable by any member of the Partnership Group, are subject to
any preemptive rights, rights of first refusal, or other rights to purchase such interests or stock
(whether in favor of any member of the Partnership Group or any other Person) pursuant to any
agreement or commitment of any member of the Partnership Group, all of which shall have been waived
in writing in connection with the transactions contemplated by this Agreement.

     Section 3.06. Ownership of Interests. On the Closing, (i) each Seller will be the record and
beneficial owner of the Interests listed next to such Seller’s name on Annex A, free and
clear of any Lien, (ii) each Seller will transfer and deliver to Buyer at the Closing good and
valid title to such Interests free and clear of any Lien, and (iii) the Interests listed on
Annex A will constitute 100% of the outstanding Equity Securities of the Partnership and
the General Partner.

Section 3.07. Subsidiaries; Investments.

     (a) (i) Each Subsidiary is duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization, and (ii) each Subsidiary has all powers and all
governmental licenses, authorizations, permits, consents and approvals required to carry on its
business as now conducted, except for those licenses, authorizations, consents and approvals the
absence of which would not be material to the Business. All Subsidiaries and their respective
jurisdictions of organization are identified on Schedule 3.07.

     (b) All of the outstanding capital stock or membership interests of each Subsidiary are owned
by the Partnership, directly or indirectly, free and clear of any Lien and have been duly
authorized, validly issued and is fully paid and nonassessable.

     (c) Except as set forth on Schedule 3.07 with respect to the Joint Ventures and the
Partnership’s ownership of the Subsidiaries, the Partnership Group does not own beneficially or of
record, or have any ownership or similar interest in, any Equity Securities of any Person, and does
not have an Investment of any kind in any Person. All of the Equity Securities listed on Schedule
3.07 have been duly authorized, are validly issued and are fully paid and nonassessable and owned
by the Partnership free and clear of all Liens (other than Permitted Liens) or restrictions on
transfer of any kind. None of the Equity Securities listed on Schedule 3.07 have been issued in
violation of, or subject to, any preemptive rights or rights of subscription. The financial
statements relating to any Person in which the Partnership Group holds Equity Securities as
disclosed on Schedule 3.07 are not required pursuant to GAAP to be consolidated in the Financial
Statements.

     (d) Except as set forth on Schedule 3.07, neither the Sellers, on account of their Interests,
nor the Partnership Group, on account of their ownership interests in the Joint Ventures or
otherwise, is under any obligation to make any loans, advances or capital contributions to, or
become a borrower or guarantor or be otherwise liable with respect to any debts, liabilities or
obligations of, any of the Joint Ventures nor is any such Joint Venture similarly obligated with
respect to the Sellers or the Partnership Group.

Section 3.08. Financial Statements. The audited consolidated financial statements — including
balance sheet, consolidated statement of income, shareholders’ equity, and cash flows — of Prism
Gas, the predecessor-in-interest to

13

 

the Partnership, and its subsidiaries (which consist solely of
the Subsidiaries) as of and for the years ended December 31, 2000, 2001, 2002, 2003, and 2004,
attached hereto as Schedule 3.08(a) (the “Audited Financial Statements”), present fairly the
financial position of Prism Gas and its subsidiaries as of the dates indicated, and the results of
operations for the indicated periods in conformity with GAAP, consistently applied (except as may
be indicated in the notes thereto). In addition, the unaudited consolidated financial statements
(the “Unaudited Financial Statements”, and together with the Audited Financial Statements, the
“Financial Statements”) — including balance sheet (the “Latest Balance Sheet”), statements of
operations, cash flows, and partners’ capital — of the Partnership and Subsidiaries as of and for
the period ended May 31, 2005 (the “Latest Balance Sheet Date”), attached hereto as Schedule
3.08(b), present fairly the financial position of the Partnership and Subsidiaries as of the Latest
Balance Sheet Date, and the results of operations for the period from January 1, 2005 to the Latest
Balance Sheet Date in conformity with GAAP, consistently applied, except that the Unaudited
Financial Statements, including the Latest Balance Sheet, are unaudited and are subject to normal
recurring year-end adjustments and the absence of footnotes. The year-end adjustments for the
Partnership Group’s annual financial statements for its 2002, 2003 and 2004 fiscal years are as
specified in Schedule 3.08(c). The Financial Statements (i) are true, accurate, correct and
complete and in accordance with the books and records of the Partnership Group, (ii) represent bona
fide transactions effected in the ordinary course of business, and (iii) do not reflect any
write-ups, write-downs or material adjustments that are not otherwise disclosed. Attached hereto
as Schedule 3.08(d) for each Joint Venture are unaudited financial statements — including balance
sheet, statement of income, and cash flows — as of and for the year ended December 31 of each of
the years in which the Partnership Group owned an interest in such Joint Venture, and as of and for
the five months ended May 31, 2005 (collectively, the “Joint Venture Financial Statements”). The
Joint Venture Financial Statements are unaudited and present fairly the respective financial
position and results of operation for each of the Joint Ventures in accordance with GAAP,
consistently applied, as of and for the periods presented, except that (i) the Joint Venture
Financial Statements as of and for the five months ended May 31, 2005 and all Joint Venture
Financial Statements of Matagorda and Pipe have not been prepared in conformity with GAAP, and (ii)
in the case of such May 31, 2005 Joint Venture Financial Statements, such financial statements are
subject to normal recurring year-end adjustments and the absence of footnotes. The year-end
adjustments for the Joint Ventures’ annual financial statements attached as Schedule 3.08(d) for
the fiscal years thereof are as specified in Schedule 3.08(e). The Joint Venture Financial
Statements (i) are true, accurate, correct and complete and in accordance with the books and
records of each Joint Venture, (ii) represent bona fide transactions effected in the ordinary
course of business, and (iii) do not reflect any write-ups, write-downs or material adjustments
that are not otherwise disclosed. Each member of the Partnership Group and each Joint Venture,
except as otherwise detailed on Schedule 3.08(f), maintains a system of internal accounting
controls required under GAAP that provides reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes, including
policies and procedures that (i) pertain to the maintenance of records that in reasonable detail
accurately and fairly reflect the transactions and dispositions of the assets of such entity, (ii)
provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with GAAP and that receipts and expenditures are being made only
in accordance with the authorization of management, and (iii) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets
that could have a material effect on financial statements. In addition, when delivered pursuant to
Section 7.14(b), the June Financial Statements will present fairly the financial position of the
Partnership and the Subsidiaries as of the dates indicated therein, including any required
adjustment to the Tax payable accrual reflected on the Latest Balance Sheet as a result of the
Appraisal pursuant to Section 7.15, and the results of operations for the periods presented therein
in conformity with GAAP, consistently applied, except that such June Financial Statements are
unaudited and are subject to normal recurring year-end adjustments and the absence of footnotes.
When delivered, the June Financial Statements will (i) be true, accurate, correct and complete and
in accordance with the books and records of the Partnership Group, (ii) represent bona fide
transactions effected in the ordinary course of business, and (iii) not reflect any write-ups,
write-downs or material adjustments that are not otherwise disclosed.

Section 3.09. Absence of Certain Changes. Except as disclosed in Schedule 3.09 or as expressly
contemplated by this Agreement, since December 31, 2004, the business of the Partnership Group and
the Joint Ventures has been conducted in the ordinary course consistent with past practices and
since December 31, 2004 in the case of subsections (a) through (c) and (e) through (j), and since
the latest Balance Sheet Date in the case of subsections (d) and (k), there has not been:

     (a) a Material Adverse Effect;

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(b) any repurchase, redemption or other acquisition by the Partnership Group or the Joint
Ventures of any outstanding Interests or other securities of the Partnership Group or the Joint
Ventures;

(c) any amendment of any material term of any outstanding security of the Partnership Group or
the Joint Ventures, or any issuance of additional equity securities or grant of any option, warrant
or right to acquire any equity securities or issue any security convertible into or exchangeable
for equity securities;

(d) any incurrence, creation, renewal, assumption or guarantee by the Partnership Group or the
Joint Ventures of any (i) indebtedness for borrowed money, (ii) capitalized lease arrangement,
(iii) hedging transactions, or (iv) operating lease arrangements, in any case other than in the
ordinary course of business consistent with past practices and in all cases not in excess of
$500,000 in the aggregate;

(e) any making of any loan, advance or capital contributions to, or investment in, any Person
other than loans, advances or capital contributions to or investments made in the ordinary course
of business consistent with past practices;

(f) any transaction or commitment made, including any capital expenditure or any contract or
agreement entered into by the Partnership Group or the Joint Ventures relating to its assets or
business, in either case, material to the Partnership Group or the Joint Ventures, taken as a
whole, other than transactions and commitments in the ordinary course of business consistent with
past practices and those contemplated by this Agreement;

(g) any material change in any method of accounting or accounting practice by the Partnership
Group or the Joint Ventures except for any such change required by reason of a concurrent change in
GAAP;

(h) any (i) employment, deferred compensation, severance, retirement or other similar
agreement entered into with any director, officer or employee of the Partnership Group or the Joint
Ventures (or any amendment to any such existing agreement), (ii) grant of any severance or
termination pay to any director, officer or employee of the Partnership Group or the Joint
Ventures, or (iii) change in compensation or other benefits payable to any director, officer or
employee of the Partnership Group or the Joint Ventures to any severance or retirement plans or
policies thereof, in each case other than in the ordinary course of business consistent with past
practices;

(i) any (i) change in accounting method, (ii) closing agreement (as defined in Section 7121 of
the Code) or settlement of a material Tax liability entered into that affects the Partnership Group
or the Joint Ventures, (iii) sale or other disposition of assets that is subject to the installment
method or has been treated as an open transaction, (iv) change in a Tax election, or (v) amendment
to a Return filed by the Partnership Group or the Joint Ventures;

(j) any transfer, assignment or encumbrance of any material asset of the Partnership Group or
the Joint Ventures, other than the Permitted Liens; or

(k) any capital expenditure individually in excess of $50,000 and not to exceed $100,000 in
the aggregate in the case of all capital expenditures, other than for capital expenditures related
to projects set forth on Schedule 5.01(d).

Section 3.10. Intercompany Accounts. Schedule 3.10 contains a complete list of all intercompany
balances and liabilities as of the Latest Balance Sheet Date between or among Sellers and their
Affiliates, on the one hand, and the Partnership Group and the Joint Ventures, on the other hand.
Since the Latest Balance Sheet Date, there has not been any accrual of liability by the Partnership
Group or the Joint Ventures to Sellers or any of their Affiliates or other transaction between the
Partnership Group or the Joint Ventures and Sellers and any of their Affiliates, except in the
ordinary course of business of the Partnership Group or the Joint Ventures consistent with past
practices or as provided in Schedule 3.10. Except as disclosed on Schedule 3.10, each of the
liabilities and balances listed on Schedule 3.10 was incurred or engaged in on an arm’s length
basis. All settlements of intercompany balances and liabilities between Sellers and their
Affiliates, on the one hand, and the Partnership Group and the Joint Ventures, on the other hand,
have been made, and all allocations of intercompany expenses have been applied, on arms-length

15

 

terms. All of the balances and liabilities listed on Schedule 3.10, or intercompany balances and
liabilities incurred between the Latest Balance
Sheet Date and the Closing Date as between the Sellers and their Affiliates, on the one hand, and
the Partnership Group and the Joint Ventures, on the other hand, will be settled prior to the
Closing.

Section 3.11. Material Contracts. Schedule 3.11 discloses any agreements, contracts, plans,
leases, arrangements or commitments binding upon any member of the Partnership Group or the Joint
Ventures that provide for payment, or delivery of assets or services, with obligations for payment
of amounts in excess of $100,000 on an annual basis. Such disclosed items represent at least 80%
of the annualized revenue stream of the Partnership Group. Schedule 3.11 also discloses (i) any
agreement pursuant to which any member of the Partnership Group or the Joint Ventures is entitled
to indemnification from a third party including, without limitation, with respect to breached
representations or warranties, breached covenants and/or environmental matters or conditions, and
(ii) whether any indemnification claims have been asserted or are contemplated thereunder,
including with respect to asserted claims, the disposition of such claims. Each agreement,
contract, plan, lease, arrangement or commitment required to be disclosed pursuant to this Section
is a valid and binding agreement of the Partnership Group or the Joint Ventures, as the case may
be, and is in full force and effect, and none of the Partnership Group or the Joint Ventures or, to
the Knowledge of Sellers, any other party thereto is in default or breach in any respect under the
terms of any such agreement, contract, plan, lease, arrangement or commitment, except for any such
defaults or breaches which would not reasonably be expected to have a Material Adverse Effect.

Section 3.12. Litigation. Except as disclosed on Schedule 3.12 there is no action, claim, suit,
investigation or proceeding pending against, or to the Knowledge of Sellers, threatened against or
affecting, Sellers, the Partnership Group or the Joint Ventures or any of their respective
properties before any court or arbitrator or any governmental body, agency or official which is
reasonably likely to have a Material Adverse Effect.

Section 3.13. Compliance with Laws and Court Orders. Neither the Partnership Group, the Joint
Ventures nor, to the Seller’s Knowledge, Administaff with respect to the employment of the
Partnership Group’s employees or the Employee Plans, is in violation of, or has received any
written notice of any violation of or, to the Knowledge of Sellers, is under investigation with
respect to or has been threatened to be charged with any violation of, any applicable law, rule,
regulation, judgment, injunction, order or decree, except for violations that have not had and
would not reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect. Schedule 3.13 lists all permits and licenses held by the Partnership Group and the Joint
Ventures with respect to the operation of the business of the Partnership Group and the Joint
Ventures and, to the Knowledge of Sellers, there are no other permits or licenses required to own
and operate the business of the Partnership Group or the Joint Ventures in the manner in which the
respective business is currently owned and operated (collectively, “Permits”).

Section 3.14. Intellectual Property.

     (a) Schedule 3.14(a) contains a list of all registrations and applications for registration
and other material Intellectual Property Rights included in the Partnership Intellectual Property
Rights or material to the Joint Ventures.

     (b) Schedule 3.14(b) sets forth a list of (i) all agreements as to which the Partnership Group
is a party and pursuant to which any Person is authorized to use any material Partnership
Intellectual Property Right and (ii) all agreements to which the Partnership Group is a party and
pursuant to which the Partnership Group has a license or right to use Intellectual Property Rights
of a third party. Schedule 3.14(b) also sets forth similar agreements with respect to Intellectual
Property Rights pertaining to the Joint Ventures.

     (c) No Partnership Intellectual Property Right or material Intellectual Property Right of the
Joint Ventures or, to the Knowledge of Sellers, any Intellectual Property Rights licensed to the
Partnership Group or the Joint Ventures, is subject to any outstanding judgment, injunction, order,
decree or agreement restricting the use thereof by the Partnership Group or the Joint Ventures or
restricting the licensing thereof by the Partnership Group or the Joint Ventures to any Person,
except for any judgment, injunction, order, decree or agreement which would not reasonably be
expected to have a Material Adverse Effect.

16

 

     (d) To the Knowledge of Sellers and the Partnership Group, the conduct of the business of the
Partnership Group and the Joint Ventures as presently conducted does not infringe upon,
misappropriate, or otherwise violate the Intellectual Property Rights of any third party.

Section 3.15. Insurance Coverage. Sellers have made available to Buyer, and have included as
Schedule 3.15 hereto, a list of, and true and complete copies of, all insurance policies or binders
and fidelity or performance bonds relating to the assets, business, operations, employees, officers
or directors of the Partnership Group and the Joint Ventures, including the Environmental Policy,
together with a schedule of the material claims history of the Partnership Group and the Joint
Ventures under such policies and bonds since January of 2000. Schedule 3.15 also list all claims
which are presently contemplated under such policies. There are no material claims by the
Partnership Group or the Joint Ventures pending under any of such policies or bonds as to which
coverage has been questioned, denied or disputed by the underwriters of such policies or bonds or
in respect of which such underwriters have reserved their rights. Each such policy and bond is in
full force and effect, and none of the Partnership Group or the Joint Ventures is in breach of any
material term of such policies or bonds and, to the knowledge of the Sellers, no insurer or other
party to any such policy or bond is in breach of any material term thereof.

Section 3.16. Finders’ Fees. Other than RBC Capital Markets, whose fees and expenses shall be paid
by the Partnership, there is no investment banker, broker, finder or other intermediary which has
been retained by or is authorized to act on behalf of Sellers or the Partnership Group who might be
entitled to any fee or commission in connection with the transactions contemplated by this
Agreement and Buyer shall not have any liability or obligation to pay any such fees or expenses to
any such Person.

Section 3.17. Employees. The Partnership has entered into an agreement with Administaff (the
“Administaff Agreement”) under which Administaff and the Partnership Group are co-employers of the
individuals performing services for the Partnership Group. Sellers have provided a copy of the
Administaff Agreement to Buyer. Pursuant to the Administaff Agreement, Administaff is responsible
for, among other things, paying salaries and wages, complying with reporting and payment of federal
and state payroll taxes, and providing benefits to the individuals performing services for the
Partnership. Partnership has complied in all material respects with its responsibilities under the
Administaff Agreement, no event of default has occurred or is continuing under the Administaff
Agreement and no claims for indemnity are pending or, to the Sellers’ Knowledge, have been
threatened thereunder. Schedule 3.17 sets forth a list of the co-employees of the Partnership
Group and Administaff by name, position or job title, compensation (including bonus), date of hire,
seniority date (if different), and status (i.e. whether active or on leave of absence) (the
“Employees”).

Section 3.18. Employee Benefit Plans.

     (a) Schedule 3.18 sets forth a list of the Employee Plans sponsored and maintained by
Administaff in which the Employees participate (the “Administaff Plans”). The Partnership Group is
not a participating employer in the Administaff Plans. The Partnership Group sponsors and
maintains a 401(k) plan and a severance program for the benefit of the Employees (the “Partnership
Group Plans”). The Joint Ventures do not sponsor or maintain any
Employee Plans. With respect to each Partnership Group Plan, Sellers have delivered to Buyer
a true, correct, and complete copy of (i) the plan documents; (ii) the most recent opinion letter
from the Internal Revenue Service related to the Partnership Group’s 401(k) plan; and (iii) the
annual reports required to be filed for the three most recent plan years. The Partnership Group
Plans have been maintained in compliance in all material respects with the terms of such plans and
all Applicable Laws. The Partnership Group has made full and timely payment of all contributions
required to be made by it under each Partnership Group Plan, except that all contributions which
are so required to be made by the Partnership Group to each Partnership Group Plan for any period
ending prior to the Closing, but which, if any, are not due by the date of the Closing, shall be
properly reserved or accrued in the appropriate financial statements. Except as specifically set
forth in Schedule 3.18, no officer, employee, consultant or agent of the Partnership Group or the
Joint Ventures is entitled to any severance payments or other benefits on termination of employment
or service with the Partnership Group or any Joint Venture other than customary state unemployment
benefits. The Partnership Group Plans and the Administaff Agreement will be terminated on or prior
to the Closing Date as provided in Section 8.03.

     (b) During the past six years, the Partnership Group and the Joint Ventures and their
respective ERISA Affiliates have not made or been required to make, directly or indirectly,
contributions to any

17

 

“multiemployer plan,” as defined in Section 3(37) of ERISA, or an employee
pension plan subject to Title IV of ERISA or Section 412 of the Code. The Partnership Group and
its ERISA Affiliates have paid and discharged promptly when due all liabilities and obligations
arising under ERISA or the Code of a character which if unpaid or unperformed would result in the
imposition of a lien against the assets of the Partnership Group.

Section 3.19. Gas Regulatory Matters. The Partnership Group and each Joint Venture is not subject
to regulation under the Public Utility Holding Company Act, as amended, or the Investment Company
Act of 1940, as amended. The Partnership Group and each Joint Venture is not subject to regulation
under the Natural Gas Act of 1938, as amended. Except as set forth on Schedule 3.19, no portion of
the assets of the Partnership Group or any Joint Venture are subject to the jurisdiction of the
Federal Energy Regulatory Commission under the Natural Gas Act of 1938, the Natural Gas Policy Act
of 1978 or the Interstate Commerce Act.

Section 3.20. Tax Matters. Except as set forth in Schedule 3.20:

     (a) All material Tax returns, statements, reports and forms, including any schedule or
attachment (collectively, the “Returns”) required to be filed with any taxing authority on or
before the Closing Date by, or with respect to, the Partnership Group, any entity for whose Tax any
member of the Partnership Group is liable (as a transferee or otherwise) or any Joint Venture have
been timely filed on or before the Closing Date, and all such Returns are true, correct and
complete in all material respects; (b) the Partnership Group, any entity for whose Tax any member
of the Partnership Group is liable (as a transferee or otherwise) and each Joint Venture has paid
all material Taxes due and payable on or before the date hereof; (c) the charges, accruals and
reserves for Taxes with respect to the Partnership Group, any entity for whose Tax any member of
the Partnership Group is liable (as a transferee or otherwise) or each Joint Venture reflected on
the books of the Partnership Group or each Joint Venture, as applicable, including any Tax payable
accruals to be reflected in the June Financial Statements, are adequate, under GAAP, to cover
material Tax liabilities accruing through the date thereof; provided that this representation
expressly excludes the charges, accruals and reserves on such books attributable to the liquidation
of Prism Gas on January 1, 2005; (d) there is no action, suit, proceeding, investigation, audit or
claim now proposed, pending or, to the Knowledge of Sellers, threatened against or with respect to
the Partnership Group or any Joint Venture in respect of any material Tax or any Tax period; (e)
there are no Liens on the Interests or on any of the assets of the Partnership Group or any Joint
Venture that arose in connection with any failure (or alleged failure) to pay any Tax, other than
liens for Taxes not yet due and payable and for which adequate provision has been made in, as
applicable, the Financial Statements or the Joint Venture Financial Statements, including the June
Financial Statements; (f) all material Tax withholding and deposit requirements imposed on or with
respect to the Partnership Group or any Joint Venture have been satisfied in all material respects;
(g) all material assets of the Partnership Group or any Joint Venture have been included on the
property tax rolls of the Tax jurisdictions in which the property is located and there is no
omitted property in such jurisdictions; (h) none of the Partnership Group, any Joint Venture or the
Sellers
have entered into a transaction that would be reportable under Treasury Regulation section
1.6011-4 or any predecessor thereto; (i) with the exception of Prism Gas, none of the Partnership
Group nor any Joint Venture has elected to be taxed as a corporation for Federal income Tax
purposes; and (j) Waskom has made a Section 754 election under the Code, Waskom has not revoked
such election and such election may not be revoked by Waskom without the consent of the
Partnership. For purposes of this Agreement, “Tax” means any tax, governmental fee or other like
assessment or charge of any kind whatsoever (including, but not limited to, withholding on amounts
paid to or by any Person, real and personal property taxes, severance and similar taxes and Real
Property transfer taxes), together with any interest, penalty, addition to tax or additional amount
imposed by any Governmental Authority (domestic or foreign) responsible for the imposition of any
such tax, governmental fee, assessment or charge.

Section 3.21. Environmental Matters. Except as disclosed on Schedule 3.21 and except as to matters
that would not reasonably be expected to have a Material Adverse Effect:

     (a) (i) no written and pending notice, order, request for information, complaint or penalty
has been received by Sellers or the Partnership Group or any Joint Venture, and (ii) there are no
judicial, administrative or other third party claims, demands, suits or proceedings pending or
threatened, in the case of each of (i) and (ii), which allege a violation of or liability under any
Environmental Law by the Partnership Group, any Joint Venture or any predecessor to the Partnership
Group or any Joint Venture;

18

 

     (b) the Partnership Group and each Joint Venture is in compliance with applicable
Environmental Laws, have all Environmental Permits necessary for their operations to comply with
all applicable Environmental Laws and are in compliance with the terms of such permits and with all
other applicable Environmental Laws; and

     (c) there has been no written environmental investigation, study or audit conducted within the
past five years by, on behalf of, or in the possession or control of the Partnership Group or any
Joint Venture of any property currently or formerly owned, operated or leased by the Partnership
Group or any Joint Venture which has not been delivered or made available to Buyer prior to the
date hereof and is not listed on Schedule 3.21(c);

     (d) except as disclosed on Schedule 3.21(d), no Hazardous Substances have been released,
discharged, dumped or disposed of to (i) soil in amounts that would reasonably be expected to
impact groundwater or surface water, (ii) groundwater, or (iii) surface water, in the case of each
of (i), (ii) and (iii), at, under, on or from real property currently or, to the Knowledge of
Sellers, formerly owned, leased, and/or operated by the Partnership Group or any Joint Venture or
that would otherwise violate Applicable Law; and

     (e) except as disclosed on Schedule 3.21(e), to the Knowledge of Sellers, there is no Real
Property where operations are inactive or discontinued as of the date hereof.

Section 3.22. Preferential or Consent Rights. Except as listed on Schedule 3.22, there are no
preferential or similar rights permitting any Person to purchase any portion of the assets held by
the Partnership Group or any Joint Venture in connection with the transactions contemplated hereby
and all of such rights will have been waived by the Closing Date.

Section 3.23. Letters of Credit; Bank Accounts. Except as set forth on the Latest Balance Sheet
(or as disclosed in the notes thereto) or as disclosed on Schedule 3.23, no surety bonds, letters
of credit, or cash collateral issued in respect of any member of the Partnership Group is
outstanding. Schedule 3.23 also lists all bank accounts, and lockboxes of the Partnership Group by
location, account number and authorized signatory thereto.

Section 3.24. Real Property.

     (a) Schedule 3.24(a) indicates which parcels of Real Property constitute owned Real Property
(the “Owned Real Property”), and sets forth an accurate and complete (in all material respects)
legal description of the Owned Real Property. The Owned Real Property constitutes all of the real
property owned by the Partnership or any Joint Venture that is used or held for use in connection
with the Business. The Partnership and each Joint Venture, as applicable, is in possession of all
Owned Real Property. The Partnership Group and each Joint Venture has good and indefeasible title
in fee simple absolute to such Owned Real Property, as applicable, free and clear of all Liens
except for Permitted Liens.

     (b) Schedule 3.24(b) indicates which parcels of Real Property constitute leased Real Property
(the “Leased Real Property”), and sets forth an accurate and complete (in all material respects)
legal description of the Leased Real Property, except as indicated on Schedule 3.24(b). The
Partnership Group or each Joint Venture, as applicable, has a valid and subsisting leasehold estate
and the right to quiet enjoyment of the Leased Real Property, free and clear of all Liens other
than Permitted Liens. The Leased Real Property constitutes all Real Property leased to the
Partnership and the Joint Ventures that is used or held for use in connection with the Business.
The Real Property is sufficient to permit the Business to operate in the historical ordinary cause
of business.

     (c) There are no contracts affecting the title to or possession of any of the Real Property
other than those set out in Schedule 3.24(b).

     (d) Neither the whole nor any portion of the Real Property has been condemned, requisitioned,
or otherwise taken by any public authority, and no notice of any such condemnation, requisition, or
taking has been received by the Partnership Group or the Joint Ventures. To Sellers’ Knowledge, no
such condemnation, requisition, or taking is threatened or contemplated. Sellers have no Knowledge
of any public improvements that may result in special assessments against the Real Property.

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     (e)      (i) The Real Property is in compliance in all respects with all applicable zoning,
building, health and fire laws, (ii) the zoning of each parcel of Real Property permits the
existing improvements and the continuation following consummation of the transactions contemplated
hereby of the Business as presently conducted thereon, (iii) the Partnership or each Joint Venture,
as applicable, has all licenses, certificates of occupancy, permits, and authorizations required to
conduct the Business as currently conducted by the Partnership and the Joint Ventures on the Real
Property, (iv) the Partnership and the Joint Ventures have such easements and rights as are
necessary to conduct the Business as currently conducted by the Partnership and the Joint Ventures
on the Real Property, and (v) no fact or condition exists that has resulted or is reasonably likely
to result in the termination or impairment of access to the Real Property or discontinuation of
sewer, water, electric, gas, telephone, waste disposal, or other utilities necessary to conduct the
Business on the Real Property.

     (f)      Sellers have delivered or made available to Buyer accurate, correct, and complete (in all
material respects) copies of all valid and existing deeds, leases, mortgages, deeds of trust,
certificates of occupancy, existing title insurance policies, title reports and, surveys, and all
amendments thereof that are within Sellers’ or the Partnership’s or any Joint Venture’s possession
or control with respect to any Real Property.

Section 3.25. Tangible Personal Property. The inventory owned by the Partnership Group and the
Joint Ventures is in such amounts as are consistent with their respective past practices and such
inventory is saleable, and not obsolete or defective. The Partnership Group and each Joint
Venture, as applicable, is in possession of and has good title to, or has valid leasehold interests
in or valid rights under contract to use, all tangible and intangible property reflected on the
balance sheets included in the Financial Statements and the Joint Venture Financial Statements and
tangible and intangible property acquired since the Latest Balance Sheet Date, other than property
disposed of since such date in the ordinary course of business consistent with past practice. All
such tangible and intangible property is free and clear of all Liens, other than Permitted Liens,
and is in good working condition, ordinary wear and tear excepted. Such tangible and intangible
property is sufficient to permit the Business to operate in the historical ordinary course of
business.

Section 3.26. Absence of Undisclosed Liabilities. As of the date hereof and as of the Closing Date, the Partnership Group and the Joint Ventures
do not have any material debts, liabilities or obligations of any kind or character (whether fixed,
contingent, existing or inchoate), except for (i) debts, liabilities and obligations reflected on
the Latest Balance Sheet, in the case of the Partnership Group, and on the May 31, 2005 balance
sheets included in the Joint Venture Financial Statements, in the case of the Joint Ventures, (ii)
continuing obligations under contracts, and (iii) debts, liabilities and obligations incurred by
the Partnership Group and the Joint Ventures in the ordinary course of business consistent with
past practice since the date of the Latest Balance Sheet and in compliance with the provisions set
forth in Sections 3.09 and 5.01, as applicable.

Section 3.27. Suspense Accounts. Sellers have previously made available to Buyer a copy of all
information in its possession relating to monies held in suspense accounts.

Section 3.28. Accounts Receivable. The accounts receivable owed to the Partnership Group as of May
31, 2005, as listed on the Latest Balance Sheet, and accrued since that date through the Closing
Date, are collectible in full less any specifically applicable reserves established in accordance
with GAAP and consistent with past practice.

Section 3.29. Investment Representations. Each Seller who is taking delivery of Common Units
hereunder makes the following representations and warranties to and agreements with Buyer in
addition to those agreements specified in Section 2.02(a):

     (a) Such Seller is an “accredited investor” within the meaning of federal securities laws.

     (b) Such Seller has been provided with all of the information concerning the business,
operations, financial condition, results of operations and prospects of Martin Midstream Partners
LP (“MMLP”) and its subsidiaries and affiliates, including information which is reflected in MMLP’s
periodic filings with the Securities and Exchange Commission, as is necessary for such Seller to
make an informed investment decision with respect to his, her or its taking payment of all or a
portion of his, her or its pro rata share of the Purchase Price in the form of Common Units.

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     (c) Such Seller is of sufficient financial resources that he, she or it is able bear the risks
of ownership of such Common Units, including the complete loss of value thereof.

     (d) Such Seller is taking such Common Units for investment purposes only and not with a view
to any distribution thereof within the meaning of federal and state securities laws and will not
make any such distribution without complying with the provisions of Section 2.02(a).

     (e) If such Seller becomes an employee of Buyer or an affiliate of Buyer following the
Closing, he will abide by MMLP’s guidelines in effect from time to time pertaining to trading in
MMLP securities and the use of confidential MMLP information, including the application from time
to time whereby employee owners of Common Units are prohibited from effecting any buy or sell
transactions in MMLP securities.

ARTICLE 4

Representations and Warranties of Buyer 

Buyer represents and warrants to the Partnership and Sellers as of the date hereof that:

Section 4.01. Existence and Power. Buyer is a limited partnership duly organized, validly existing
and in good standing under the laws of Delaware and has all partnership powers and all material
governmental licenses, authorizations, permits, consents and
approvals required to carry on its business as now conducted except for those licenses,
authorizations, permits, consents and approvals the absence of which would not have a material
adverse effect on (a) the business, assets or results of operations of Buyer and its subsidiaries,
taken as a whole, or (b) the ability of Buyer to perform its material obligations under this
Agreement.

Section 4.02. Authorization. The execution, delivery and performance by Buyer of this Agreement
and the consummation of the transactions contemplated hereby are within the powers of Buyer and
have been duly authorized by all necessary action on the part of Buyer. This Agreement constitutes
a valid and binding agreement of Buyer.

Section 4.03. Governmental Authorization. The execution, delivery and performance by Buyer of this
Agreement and the consummation of the transactions contemplated hereby require no material action
by or in respect of, or material filing with, any governmental body, agency or official other than
compliance with any applicable requirements of the HSR Act.

Section 4.04. Noncontravention. The execution, delivery and performance by Buyer of this Agreement
and the consummation of the transactions contemplated hereby do not and will not (i) violate the
organizational documents of Buyer, (ii) assuming compliance with the matters referred to in Section
4.03, violate any applicable law, rule, regulation, judgment, injunction, order or decree or (iii)
require any consent or other action by any Person under, constitute a default under, or give rise
to any right of termination, cancellation or acceleration of any right or obligation of Buyer, it
being understood that the failure of Buyer to receive any consent, waiver, approval or
authorization required or otherwise sought in connection with the documents set forth on Schedule
4.04 shall not affect any of Buyer’s obligations under this Agreement.

Section 4.05. Purchase for Investment. Buyer is purchasing the Interests for investment for its
own account and not with a view to, or for sale in connection with, any distribution thereof.
Buyer (either alone or together with its advisors) has sufficient knowledge and experience in
financial and business matters so as to be capable of evaluating the merits and risks of its
investment in the Interests and is capable of bearing the economic risks of such investment.

Section 4.06. Litigation. Except as set forth on Schedule 4.06, there is no action, suit,
investigation or proceeding pending against, or to the knowledge of Buyer threatened against or
affecting, Buyer before any court or arbitrator or any governmental body, agency or official which
in any manner challenges or seeks to prevent, enjoin, alter or materially delay the transactions
contemplated by this Agreement.

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Section 4.07. Finders’ Fees. In the event Buyer has retained an advisor, investment banker,
broker, finder or other intermediary in connection with the transactions contemplated by this
Agreement, Sellers shall not have any liability or obligation to pay and shall not pay any such
fees or expenses to any such Person.

Section 4.08. Inspections. Buyer is an informed and sophisticated purchaser, and has engaged
expert advisors, experienced in the evaluation and purchase of companies such as the Partnership
Group as contemplated hereunder, provided that the foregoing shall not impact the ability of Buyer
to assert any indemnification claims hereunder.

Section 4.09. Financing. Buyer will have, as of the Closing Date, sufficient cash, available lines of credit or other
sources of immediately available funds to enable it to make payment of the Base Purchase Price and
any other amounts to be paid by it hereunder, it being understood that none of Buyer’s obligations
hereunder are conditioned upon obtaining financing.

ARTICLE 5

Covenants of Sellers 

     Sellers agree that:

Section 5.01. Conduct of the Partnership Group. From the date hereof until the Closing Date,
Sellers shall cause the Partnership Group, and the Partnership Group shall cause each Joint
Venture, to conduct its businesses in the ordinary course consistent with past practice. Without
limiting the generality of the foregoing, from the date hereof until the Closing Date, except as
disclosed on Schedule 5.01, without the prior written consent of Buyer, Sellers will not permit the
Partnership Group, nor will the Partnership Group permit any Joint Venture to:

     (a) adopt or propose any change to any Partnership Group or Joint Venture governance
documents;

     (b) merge or consolidate with any other Person or acquire a material amount of assets from any
other Person;

     (c) sell, lease, license or otherwise dispose of or subject to any Lien (other than Permitted
Liens) any material assets or property except (i) pursuant to existing contracts or commitments or
(ii) otherwise in the ordinary course consistent with past practices;

     (d) make any capital expenditure individually in excess of $50,000 and not to exceed $100,000
in the aggregate in the case of all capital expenditures without prior written consent of Buyer,
other than for (i) capital expenditures related to projects set forth on Schedule 5.01(d) or (ii)
unanticipated capital expenditures necessary for the business of the Partnership Group or the Joint
Ventures to operate in compliance with Applicable Law enacted after the date of this Agreement;

     (e) terminate or materially amend any contracts with material customers or suppliers;

     (f) hire as an employee, or extend offers of employment to any Person who is entitled to
receive $100,000 or more in compensation annually;

     (g) (i) amend or terminate any employment or severance agreement with any officer or employee
of the Partnership Group or any Joint Venture or (ii) change the compensation or other benefits
payable to any officer or employee of the Partnership Group or any Joint Venture pursuant to any
severance or retirement plans or policies thereof, in each case other than in the ordinary course
of business consistent with past practices;

     (h) take any action that would jeopardize coverage of any member of the Partnership Group
under the AIG environmental insurance policy, policy number PLS6192187 (the “Environmental
Policy”), except for the filing in good faith of claims under the Environmental Policy;

     (i) change an accounting method or Tax election, enter into a closing agreement (as defined in
Section 7121 of the Code) or settlement with respect to Taxes, or file an amended Return;

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     (j) incur, create, renew, assume or guarantee any (i) indebtedness for borrowed money, (ii)
capitalized lease arrangement, (iii) hedging transactions, or (iv) operating lease arrangements, in
any case other than in the ordinary course of business consistent with past practices and in all
cases not in excess of $500,000 in the aggregate; or

     (k) agree or commit to do any of the foregoing;

provided, however, that notwithstanding anything to the contrary in the foregoing, the Sellers
shall be permitted to cause the Partnership to make prior to the Closing, and the Partnership shall
be permitted to make prior to the Closing, (i) transactional bonus payments to such Employees and
in such amounts as Sellers and the Partnership determine appropriate in their absolute discretion;
and (ii) severance payments to any Employees who are not Retained Employees and are therefore
terminated by the Partnership and not reemployed by Buyer or an Affiliate on the Closing Date.
Partnership shall supplementally advise Buyer of the amounts and recipients of such bonuses in
order that Buyer may be fully informed of historical compensation arrangements with respect to the
employee workforce within the Business.

Section 5.02. Access to Information. From the date hereof until the Closing Date, Sellers will (i)
give, and will cause the Partnership Group to give, and the Partnership Group will cause the Joint
Ventures to give, Buyer, its counsel, financial advisors, auditors and other authorized
representatives reasonable access to the offices, properties, books and records of the Partnership
Group and the Joint Ventures and to the books and records of Sellers relating to the Partnership
Group and the Joint Ventures, in each case during normal business hours, (ii) furnish, and will
cause the Partnership Group to furnish, and the Partnership Group will cause the Joint Ventures to
furnish, to Buyer, its counsel, financial advisors, auditors and other authorized representatives
such financial and operating data and other information relating to the Partnership Group and the
Joint Ventures as such Persons may reasonably request, including any and all contracts to which the
Partnership Group or any Joint Venture is a party, and (iii) instruct the employees, counsel and
financial and environmental representatives, advisors and agents of Sellers or the Partnership
Group or the Joint Ventures to cooperate with Buyer in its investigation of the Partnership Group
and the Joint Ventures, including by furnishing of books, records and other information. Any
investigation pursuant to this Section shall be conducted in such manner as not to interfere
unreasonably with the conduct of the business of Sellers, the Partnership Group, the Joint Ventures
or its representatives. Notwithstanding the foregoing, Buyer shall not (i) have access to
personnel records of the Partnership Group or the Joint Ventures relating to individual performance
or evaluation records, medical histories or other information which in Sellers’ good faith opinion
would violate Applicable Laws and (ii) except as provided in Section 8.02 hereof, be entitled to
perform any intrusive or subsurface investigation or other sampling of, on or under any of the
properties owned or leased by the Partnership Group or the Joint Ventures without the prior written
consent of Sellers.

Section 5.03. Notices of Certain Events. Sellers shall promptly notify Buyer of:

     (a) any notice or other communication from any Person alleging that the consent of such Person
is or may be required in connection with the transactions contemplated by this Agreement;

     (b) any notice or other communication from any Governmental Authority in connection with the
transactions contemplated by this Agreement;

     (c) any breach or inaccuracy of the Sellers’ or the Partnership’s representations and
warranties contained in this Agreement; and

     (d) any actions, suits, claims, investigations or proceedings commenced relating to Sellers or
the Partnership Group or any Joint Venture that, if pending on the date of this Agreement, would
have been required to have been disclosed pursuant to Section 3.12.

ARTICLE 6

Covenants of Buyer 

     Buyer agrees that:

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Section 6.01. Confidentiality. All matters of confidentiality with regard to this Agreement are subject to that certain
Confidentiality Agreement by and between Buyer and the Partnership, dated April 28, 2005.

Section 6.02. Access. Buyer will cause the Partnership Group, and will cause the Partnership Group
to cause the Joint Ventures, on and after the Closing Date, to afford promptly to Sellers and their
agents reasonable access to their properties, books, records, employees and auditors to the extent
necessary to permit Sellers to determine any matter relating to its rights and obligations
hereunder or to any period ending on or before the Closing Date; provided that any such access by
Sellers shall not unreasonably interfere with the conduct of the business of Buyer, the Partnership
Group or the Joint Ventures.

Section 6.03. Representation. Buyer hereby waives, on its own behalf, and agrees to cause the
Partnership Group to waive, any conflicts that may arise in connection with (a) the undertaking
after the Closing by any legal counsel representing the Partnership Group in connection with this
Agreement and the transactions contemplated hereby to represent any current interest holder,
stockholder, officer, employee or director of Partnership Group (any such Person, a “Designated
Person”) in a matter involving this Agreement or the transactions contemplated hereby and (b) the
communication by such counsel to any such Designated Person, in any such representation, of any
fact known to such counsel, including in connection with a dispute with Buyer; provided that such
waiver shall not be deemed to be or used as a basis for contending that the Partnership Group has
waived its attorney-client privilege (it being understood that any information which any such
Designated Person or legal counsel learned prior to the Closing shall not be prohibited by virtue
of this Section 6.03 from being used in connection with any such representation by such legal
counsel of such Designated Person after the Closing). Each of the Sellers similarly waives any
conflicts that may arise in connection with the undertaking after the Closing by any legal counsel
representing Buyer in connection with this Agreement and the transactions contemplated hereby to
represent the Partnership Group, or any of its Affiliates, following the Closing.

ARTICLE 7

Covenants of Buyer and Sellers 

     Buyer and Sellers, as applicable, agree that:

Section 7.01. Reasonable Best Efforts; Further Assurances.

     (a) Subject to the terms and conditions of this Agreement, Buyer and Sellers will use their
reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done,
all things necessary or desirable under applicable laws and regulations to consummate the
transactions contemplated by this Agreement. Sellers, prior to the Closing, and Buyer, after the
Closing, agree to cause the Partnership Group to execute and deliver such other documents,
certificates, agreements and other writings and to take such other actions as may be necessary or
desirable in order to consummate or implement expeditiously the transactions contemplated by this
Agreement.

     (b) In furtherance and not in limitation of the foregoing, if required by Law, each of Buyer
and Sellers shall make an appropriate filing of a Notification and Report Form pursuant to the HSR
Act with respect to the transactions contemplated hereby as promptly as practicable and in any
event within ten Business Days of the date hereof and to supply as promptly as practicable any
additional information and documentary material that may be requested pursuant to the HSR Act and
to take all other actions necessary to cause the expiration or termination of the applicable
waiting periods under the HSR Act as soon as practicable; provided, however, that neither Buyer,
nor any of its Affiliates, shall have any obligation to (i) sell or otherwise dispose of assets of
businesses of Buyer or its Affiliates, (ii) withdraw from doing business in a particular
jurisdiction to the extent required to do so, or (iii) agree not to do business in any particular
jurisdiction. The parties agree that if any of the parties must file a Notification and Report
Form, Buyer and Seller shall split the cost of all filing fees associated therewith.

Section 7.02. Certain Filings. Sellers and Buyer shall cooperate with one another (i) in
determining whether any action by or in respect of, or filing with, any governmental body, agency,
official or authority is required, or any actions, consents, approvals or waivers are required,
including in connection with the possible transfer of any permits, authorizations, licenses or
consents for any Real Property or operation of any member of the Partnership Group, to be obtained
from parties to any material contracts, in connection with the consummation of the transactions
contemplated by this Agreement and (ii) in taking such actions or making any such filings,
furnishing

24

 

information required in connection therewith and seeking to obtain, in a timely manner,
any such actions, consents, approvals or waivers.

Section 7.03. Public Announcements. The parties agree to consult with each other before issuing
any press release or making any public statement with respect to this Agreement or the transactions
contemplated hereby and, except for any press releases and public announcements the making of which
may be required by applicable law or any listing agreement with any national securities exchange,
will not issue any such press release or make any such public statement prior to such consultation.

Section 7.04. Tax Matters.

     (a) Sellers shall prepare and file the federal income tax Returns for the Partnership Group
for all periods ending on or before the Closing Date, and shall pay all Tax shown to be due on such
returns, in excess of Taxes accrued on the Closing Date Balance Sheet.

     (b) The parties agree to allocate taxable income for the 2005 calendar year for each member of
the Partnership Group and the Joint Ventures between the portion of such year ending on the Closing
Date (the “2005 Short Period”) and the period thereafter based on an interim closing of the books
as of the Closing Date.

     (c) To the extent necessary and permissible under applicable tax Law, each of the Sellers and
the Partnership Group agree to cause the Partnership to use its commercially reasonable efforts to
make, and to cause the Joint Ventures to make (if any such Joint Venture does not currently have
such an election in place), an election under Section 754 of the Code on their respective federal
income tax returns for the 2005 Short Period.

     (d) Buyer, on the one hand, and Sellers, on the other, shall be equally responsible for all
transfer, documentary, sales, use, stamp, registration, value added and other similar Taxes and
fees (including any penalties and interest) incurred in connection with transactions contemplated
by this Agreement (including any Real Property transfer tax and any similar Tax).

     (e) Buyer and Sellers agree to furnish or cause to be furnished to each other, upon request,
as promptly as practicable, such information (including access to books and records) and assistance
relating to the Partnership Group as is reasonably necessary for the filing of any Return, for the
preparation for any audit, and for the prosecution or defense of any claim, suit or proceeding
relating to Taxes. Buyer and Sellers agree to retain or cause to be retained all books and records
pertinent to the Partnership Group until the applicable period for assessment under applicable law
(giving effect to any and all extensions or waivers) has expired. The Buyer agrees to give Sellers
reasonable notice prior to transferring, discarding or destroying any such books and records
relating to Tax matters and, if Sellers so requests, the Buyer shall allow Sellers to take
possession of such books and records. Buyer and Sellers shall reasonably cooperate with each other
in the conduct of any audit or other proceedings involving the Partnership Group for any Tax
purposes and each shall execute and deliver such powers of attorney and other documents as are
necessary and appropriate to carry out the intent of this subsection.

     (f) Buyer shall prepare and file the federal income Tax return for Prism Gas for the 2005
taxable year and such 2005 Tax return will reflect the updated Tax payable accrual determined based
on the Appraisal required under Section 7.15. Buyer shall provide the Sellers with copies of such
Tax return at least 30 Business Days prior
to the due date for the filing of such Tax return for Sellers’ review and comment. Buyer
shall consider such comments in good faith prior to the filing of any such Tax return, which shall
be within Buyer’s reasonable discretion.

     (g) If an audit is commenced, an adjustment is proposed or any other claim is made by any
taxing authority with respect to Tax liabilities of any member of the Partnership Group or any
Joint Venture relating to a Tax period (or portion thereof) ending on or before the Closing Date
for which Sellers could be liable under this Agreement or otherwise, Buyer shall promptly notify
Sellers of such audit or such proposed adjustment or such claim (unless Sellers previously were
notified in writing by the relevant taxing authority). If Sellers so request, then at Sellers’
expense, Buyers will cause the relevant entity to contest such claim or audit, by appropriate claim
for refund or credit of Taxes or in a related administrative or judicial proceeding, and shall
permit Sellers, at their option

25

 

and expense, but with the full participation and involvement by
Buyer, at its option and expense, to control the prosecution and settlement of any audit or refund
claim or related administrative or judicial proceeding with respect to those matters that could
reasonably affect the Tax liability of Sellers, including any liability hereunder, or their right
to payment; and, where deemed necessary by Sellers and in accordance with the foregoing, Buyer
shall cause the relevant entity to authorize by appropriate powers of attorney such persons as
Sellers shall designate to represent such entity with respect to such audit or refund claim or
related administrative or judicial proceeding and to settle or otherwise resolve any such
proceeding as it relates to such matters; provided, that Sellers may not settle any such audit or
refund claim or related administrative or judicial proceeding without the consent of Buyer if such
settlement would impose on Buyer any material post-settlement executory obligations which consent
shall not be unreasonably withheld. Buyer shall further execute and deliver, or cause to be
executed and delivered, to Sellers or their designee all instruments and documents reasonably
requested by Sellers to implement the provisions of this subsection (h). Any refund of Taxes
obtained by Buyer or the relevant entity in connection with this subsection (h) shall be paid
promptly to Sellers.

     (h) From and after the Closing Date, Buyer shall deliver to Sellers or their designee, as soon
as practicable after Sellers’ request, such information and data that are reasonably available
concerning the pre-Closing Date operations of the Partnership Group and the Joint Ventures and make
available such knowledgeable employees of Buyer, the Partnership Group and the Joint Ventures as
the Sellers may reasonably request, including providing the full and complete information and data
required by Sellers’ customary Tax and accounting information requests to the extent reasonably
available, in order to enable Sellers to complete fully and to file all Tax Returns that they may
be required to file pursuant to this Agreement, to respond to and contest audits by any taxing
authority pursuant to this Agreement and to prosecute any claim for refund or credit to which
Sellers are entitled hereunder and to otherwise enable Sellers to fully satisfy their accounting
and Tax requirements. Sellers shall execute and Buyer shall execute (and shall cause the
Partnership Group and the Joint Ventures to execute) such documents as may be necessary to file any
Tax Returns, to respond to or contest any audit, to prosecute any claim for refund or credit and to
otherwise satisfy any Tax requirements relating to the Partnership Group or the Joint Ventures.

     (i) Buyer shall not, and shall not permit the Partnership Group or the Joint Ventures to,
amend any Tax Return covering any period (or portion thereof) ending on or before the Closing Date
without the prior written consent of the Sellers, which consent shall not be unreasonably withheld.

Section 7.05. Relationship Among Sellers. Each Seller hereby appoints NGP and Robert E. Dunn as
the sole representatives (the “Sellers’ Representatives”) of such Seller to act as the agent and on
behalf of such Seller for all purposes under this Agreement, including for the purpose of: (i)
determining any adjustments to the Base Purchase Price in accordance with Section 2.01; (ii)
determining whether the conditions to closing in Article 9 have been satisfied and supervising the
Closing, including waiving any such condition if the Sellers’ Representatives, in its sole
discretion, determines that such waiver is appropriate; (iii) taking any action that may be
necessary or desirable, as determined by the Sellers’ Representatives, in their sole discretion, in
connection with the termination of this Agreement in accordance with Article 10; (iv) taking any
and all actions that may be necessary or desirable, as determined by the Sellers’ Representatives,
in their sole discretion, in connection with the amendment of this Agreement or waivers of any term
of this Agreement in accordance with Section 11.04; (v) accepting notices on behalf of such Seller
in accordance with Section 11.03; (vi) taking any and all actions that may be necessary or
desirable, as determined by the Sellers’ Representatives, in their sole discretion, in connection
with the payment of the costs and expenses incurred with respect to the Partnership or
such Seller in connection with the transactions contemplated by this Agreement; (vii) granting any
consent or approval on behalf of such Seller under this Agreement; and (viii) taking any and all
other actions and doing any and all other things provided in or contemplated by this Agreement to
be performed by the Sellers’ Representatives on behalf of any Seller. The Sellers’ Representatives
shall act only by joint decision, and each Sellers’ Representative acting separately shall not have
authority to act. As the representatives of Sellers, the Sellers’ Representatives shall act as the
agent for all such persons, shall have authority to bind each such person in accordance with this
Agreement, and Buyer may conclusively rely on such appointment and authority, without further
inquiry or investigation, until the receipt of notice from Sellers owning at least a majority of
the Interests of the appointment of a successor. The Sellers’ Representatives shall not have any
liability to Buyer for any default under this Agreement by any other Seller or on account of the
Sellers’ Representatives’ status as Sellers’ Representatives, and each Seller shall release and
hold harmless the Sellers’ Representatives with respect to any and all actions taken within the
course of its duties as the Sellers’ Representatives.

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Section 7.06. Termination Agreements and Continuation of Indemnification Obligations; Certain
Agreements. Effective upon the Closing, that certain Amended and Restated Advisory Services and
Indemnification Agreement, effective as of January 1, 2005, among, the Partnership, the
Partnership’s predecessor-in-interest and NGP (the “Indemnification Agreement”), and that certain
Amended and Restated Voting and Transfer Restriction Agreement effective as of January 1, 2005,
among the Partnership, the Partnership’s predecessor-in-interest and certain Sellers, shall be
terminated as to the Partnership and no Person shall have further rights or obligations under such
agreements, except that the indemnification provisions thereof shall survive such termination, in
each case as such obligations existed as of the date hereof but not as they may be amended after
the date hereof, regardless of whether such contracts are terminated on or after the Closing. Each
member of the Partnership Group or its successors (excluding Buyer and Buyer’s other Affiliates
except where any of Buyer or Buyer’s other Affiliates is a successor to a member of the Partnership
Group by merger, liquidation or otherwise) hereby agrees from and after the Closing to indemnify
and hold harmless NGP and each Person who has been at any time prior to the Closing, an officer,
director or controlling owner of any member of the Partnership Group to the fullest extent
permitted by applicable law (collectively, the “Existing Indemnified Parties”) but only to the
extent that (i) such Existing Indemnified Party was entitled to indemnification from such member of
the Partnership Group immediately prior to the date hereof under applicable law or the governing
documents of such member of the Partnership Group or under contracts between such Indemnified Party
and such member of the Partnership Group (including indemnification as provided to NGP under the
Indemnification Agreement) and (ii) such Existing Indemnified Party did not actually know, or
should not reasonably have known, of the claim that is the basis of such indemnification at the
time of Closing. The procedures associated with such indemnification shall be the same as those
associated with the Existing Indemnified Parties’ indemnification from the Partnership Group
immediately prior to the date hereof (provided, however, that neither the Partnership Group nor
Buyer nor its Affiliates shall be under any obligation to deposit trust funds pursuant to any
“change in control” or similar provisions). The provisions of this Section 7.06 are intended to:
(i) be for the benefit of, and shall be enforceable by, the parties hereto and each Indemnified
Party and their respective heirs and representatives, (ii) survive the Closing and be binding on
all successors and assigns of the Partnership Group, including Buyer and its other Affiliates if
any of them are successors to any member of the Partnership Group by merger, liquidation, or
otherwise, and (iii) be mutually exclusive of the rights and obligations set forth in Article 11,
such that payments or other obligations owed under one do not offset, or otherwise effect in any
manner, those payments or obligations owed under the other.

Section 7.07. Release of Claims.

     (a) As of the Closing, the members of the Partnership Group shall enter into: (i) a waiver and
release of claims against NGP in substantially the form set forth in Exhibit B, (ii) a
waiver and release of claims against the Sellers (other than NGP) in substantially the form set
forth in Exhibit C, (iii) a mutual waiver and release of claims with each manager, director
or officer of any member of the Partnership Group (other than the Sellers) in substantially the
form set forth in Exhibit D.

     (b) Each Seller, in his, her or its capacity as such, and in his, her or its capacity as an
officer, director, manager, employee, member, stockholder, partner, advisor or agent of any member
of the Partnership Group or any
Joint Venture, hereby agrees from and after the Closing to forever waive, release and
discharge and not to assert, against any member of the Partnership Group, or against Buyer or its
Affiliates, any rights, rights to receive payments, claims, demands, causes of action or losses
which such Seller, in any of the aforementioned capacities, may have at law or in equity, pursuant
to any agreement or otherwise with respect to any acts, omissions or circumstances in existence
prior to and through the Closing Date, other than (A) liability for obligations for wages and
benefits for periods prior to the Closing, (B) the indemnification obligation as provided in
Section 7.06, and (C) any rights, claims, liabilities or obligations, if any, arising under, or
continuing pursuant to this Agreement.

     (c) Each Seller, in any of the capacities mentioned in Section 7.07(b) understands and agrees
that pursuant to this Section 7.07, such Seller is expressly waiving all claims (other than those
expressly reserved as set forth in this Section 7.07), even those that such Seller may not know or
suspect to exist, which if known may have materially affected the decision to provide this release,
and such Seller waives any rights under applicable law that provide to the contrary.

Section 7.08. Accountant Consents. The Sellers hereby agree to use commercially reasonable efforts
to assist Buyer in obtaining from Deloitte & Touche LLC (the “Accounting Firm”), within 10 days of
the receipt by the Sellers’

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Representative of a written request from Buyer, the Accounting Firm’s
written consent to the inclusion or incorporation by reference of their audit report on the Audited
Financial Statements in (i) any registration statement filed by Buyer or its Affiliates with the
Securities and Exchange Commission under the Securities Act of 1933, as amended, or (ii) any filing
with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended,
where the filing of such Audited Financial Statements would be required by Applicable Law and to be
named as an expert in any such filing.

Section 7.09. Limitation and Disclaimer of Implied Representations and Warranties of the
Partnership. THE EXPRESS REPRESENTATIONS AND WARRANTIES OF SELLERS AND THE PARTNERSHIP GROUP
CONTAINED IN THIS AGREEMENT ARE EXCLUSIVE AND ARE IN LIEU OF ALL OTHER REPRESENTATIONS AND
WARRANTIES, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE. AT OR PRIOR TO CLOSING, BUYER SHALL HAVE
CONDUCTED SUCH INSPECTIONS OF THE PARTNERSHIP GROUP AND ITS ASSETS AS BUYER DEEMS NECESSARY AND
SHALL HAVE SATISFIED ITSELF AS TO THE CONDITION OF THE PARTNERSHIP GROUP AND ITS ASSETS, SUBJECT TO
THE REPRESENTATIONS AND WARRANTIES SET FORTH HEREIN. EXCEPT AS OTHERWISE PROVIDED IN THE
REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS AGREEMENT, SELLERS AND RBC CAPITAL MARKETS MAKE NO
WARRANTY OR REPRESENTATION, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, AS TO THE ACCURACY OR
COMPLETENESS OF ANY DATA, REPORTS, RECORDS, PROJECTIONS, INFORMATION OR MATERIALS NOW, HERETOFORE
OR HEREAFTER FURNISHED OR MADE AVAILABLE TO BUYER OR ITS REPRESENTATIVES BY THE PARTNERSHIP GROUP
OR BY THE PARTNERSHIP GROUP’S AGENTS OR REPRESENTATIVES; SUBJECT TO SUCH REPRESENTATIONS AND
WARRANTIES, ANY AND ALL SUCH DATA, RECORDS, REPORTS, PROJECTIONS, INFORMATION AND OTHER MATERIALS
FURNISHED BY THE SELLERS, THE PARTNERSHIP GROUP, OR BY THE SELLERS’ OR PARTNERSHIP GROUP’S AGENTS
OR REPRESENTATIVES OR OTHERWISE MADE AVAILABLE TO BUYER OR BUYER’S REPRESENTATIVES ARE PROVIDED TO
OR FOR THE BENEFIT OF BUYER AS A CONVENIENCE, AND SHALL NOT CREATE OR GIVE RISE TO ANY LIABILITY OF
OR AGAINST THE PARTNERSHIP GROUP, ANY SELLER, RBC CAPITAL MARKETS OR THE AGENTS OR REPRESENTATIVES
OF ANY SELLER, THE PARTNERSHIP GROUP OR RBC CAPITAL MARKETS; AND ANY RELIANCE ON OR USE OF THE SAME
SHALL BE AT BUYER’S SOLE RISK. NOTWITHSTANDING ANY INSPECTION OR REVIEW, BUYER SHALL BE ENTITLED
TO ASSERT INDEMNIFICATION CLAIMS HEREUNDER IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT.

Section 7.10. Data Room. Sellers shall preserve intact the data room materials made available to Buyer and its
representatives prior to the date hereof in connection with the transactions contemplated hereby
and shall deliver such materials, without modification, into the possession of Buyer at the
Closing. Sellers shall be allowed to retain a copy of same.

Section 7.11. Joint Ventures. The parties agree and acknowledge that the Partnership Group does
not, alone, control any of the Joint Ventures and does not operate any of the Joint Ventures other
than Waskom. As a result, the parties further agree and acknowledge, notwithstanding anything else
to the contrary in this Agreement, that any representations, warranties and covenants of Sellers,
the Partnership, or the Partnership Group in this Agreement that relate in any manner to the Joint
Ventures (e.g, in representing the status of the Joint Ventures, their activities or assets, in
covenanting to “cause” the Joint Ventures to take certain actions or refrain from taking certain
actions, or in representing, warranting or covenanting regarding future status of the Joint
Ventures, their activities or assets), other than with respect to Waskom which is expressly
excluded from the effects of this section, are modified as follows:

     (a) such representations and warranties are, in all such occurrences, made as to Sellers’
Knowledge.

     (b) such covenants are, in all such occurrences, made only as to (and are expressly limited
to) Sellers’ or the Partnership Group’s legal and contractual ability to control the Joint
Ventures, and the Sellers agree to cause the Partnership Group, and the Partnership Group agrees,
to use its reasonable, best efforts with respect thereto.

Section 7.12. McLeod Right of Way Title Issue. Prior to the Closing, Partnership Group will
endeavor to resolve, to its and Buyer’s commercially reasonable satisfaction, the right of way
title issues pertaining to McLeod specified on

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Schedule 7.12. If the Partnership Group is unable
to resolve the McLeod right of way title issues pursuant to the foregoing, such title issues shall
be treated as a special Title Defect not required to be set forth in a Title Defect Notice, not
subject to any restrictions on individual threshold amounts (set forth in the definition of Title
Defect) and fully actionable as an adjustment to the Purchase Price based on the Agreed-Upon Title
Defect Amount (as determined pursuant to Section 2.05).

Section 7.13. Prism Gas Tax Issues and Dissolution.

     (a) The Buyer acknowledges that the Partnership Group’s 50% interest in Waskom is partially
held by the Partnership (49%) and partially held by Prism Gas (1%). The Buyer acknowledges that
for one year after the Closing, the Buyer will not be able to cause the Partnership Group’s 50%
interest in Waskom to be transferred either directly or indirectly (e.g., by dissolution of the
Partnership or Prism Gas, but excluding a change in ownership of MMLP as a result of public trading
of its securities), without causing a technical dissolution of Waskom for Federal income Tax
purposes and causing the Partnership and Prism Gas to be in breach of the Waskom partnership
agreement. Buyer covenants not to cause the Partnership Group’s 50% interest in Waskom to be
transferred, either directly or indirectly, for at least one year after the Closing (excluding
changes in ownership of MMLP as a result of public trading in its securities).

     (b) Buyer further acknowledges that Prism Gas is in the process of complete liquidation under
Sections 331 and 336 of the Code pursuant to that certain Dissolution and Plan of Liquidation
approved by shareholders on January 1, 2005, as amended. Buyer covenants to cause Prism Gas to
complete the plan of complete liquidation, in accordance with its terms and in any event no earlier
than one year after the Closing and no later than one year and one week after the Closing.

Section 7.14. Additional Financial Statements

     (a) Upon specification by Buyer, the Sellers shall cause the Partnership, in consultation with
Buyer and at Buyer’s sole cost and expense, to initiate the engagement of Deloitte & Touche or KPMG
(as specified by Buyer) to provide with respect to Waskom (i) audited annual financial statements,
including balance sheets and statements of operations, cash flows and capital, as of and for the
fiscal years ended 2002, 2003 and 2004, and (ii) unaudited interim period financial statements,
including balance sheets and statements of operations, cash flows and capital, for the periods
January 1, 2005 to June 30, 2005 and January 1, 2004 to June 30, 2004; with the intent that they be
prepared in accordance with GAAP consistently applied and in accordance with applicable Law
required for such financial statements to be included or incorporated by reference in any
securities filing made by Buyer or its Affiliates, and accompanied by an SAS 100 review report.
Buyer agrees that the delivery of such financial statements will not be a condition precedent to
its obligation to consummate the transactions contemplated by this Agreement and that Sellers are
not guaranteeing the timing of delivery of, or the content of, the aforementioned financial
statements.

     (b) If required by Buyer, the Sellers shall cause the Partnership, in consultation with Buyer
and at Buyer’s sole cost and expense, to initiate the engagement of Deloitte & Touche to provide
with respect to the Partnership Group and Waskom, on a consolidated basis in accordance with FIN
46, restated audited annual financial statements, including balance sheets and statements of
operations, cash flows and capital, as of and for the fiscal year ended 2004; with the intent that
they be prepared in accordance with GAAP consistently applied and in accordance with applicable Law
required for such financial statements to be included or incorporated by reference in any
securities filing made by Buyer or its Affiliates. Buyer agrees that the delivery of such
financial statements will not be a condition precedent to its obligation to consummate the
transactions contemplated by this Agreement and that Sellers are not guaranteeing the timing of
delivery of, or the content of, the aforementioned financial statements

     (c) Upon specification by Buyer, the Sellers shall cause the Partnership, in consultation with
Buyer and at Buyer’s sole cost and expense, to engage Deloitte & Touche or KPMG LLP (as specified
by Buyer) to provide with respect to the Partnership Group and Waskom, on a consolidated basis in
accordance with FIN 46 (if such consolidation is required by Buyer), unaudited interim period
financial statements, including balance sheets and statements of operations, cash flows and
capital, for the periods January 1, 2005 to June 30, 2005 and January 1, 2004 to June 30, 2004 (the
“June Financial Statements”). The June Financial Statements shall be prepared in accordance with
GAAP consistently applied, and shall reflect any necessary adjustment to the Tax payable accrual

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set forth on the Latest Balance Sheet resulting from the Appraisal required pursuant to Section
7.15. Sellers will request that the June Financial Statements be prepared in accordance with
applicable Law required for such financial statements to be included or incorporated by reference
in any securities filing made by Buyer or its Affiliates, and accompanied by an SAS 100 review
report; however, preparation of the June Financial Statements in this manner shall not be a
requirement. Sellers agree that the delivery of the June Financial Statements not later than five
days prior to the Closing Date will be a condition precedent to Buyer’s obligation to consummate
the transactions contemplated by this Agreement, but Buyer agrees and acknowledges that a delay in
receiving the June Financial Statements past five days prior to October 31, 2005 shall effect an
extension of the Closing Date one day for every day of such delay, per Section 10.01.

Section 7.15. Appraisal. Immediately following the execution of this Agreement, Sellers shall
cause the Partnership to engage Avail Consulting, LLC to prepare and deliver a written appraisal
report (the “Appraisal”) of the fair market value of the assets distributed by Prism Gas to the
Partnership (including the interests in the Joint Ventures) on January 1, 2005. The engagement of
Avail Consulting, LLC shall be in the form of the engagement letter attached hereto as Exhibit
E, which details the scope of the Appraisal, the reasons therefor and the requested timing
thereof, among other things. The Appraisal shall be delivered not later than 10 days prior to the
Closing Date, and the cost for the Appraisal shall be shared equally by Buyer, on the one hand, and
the Sellers, on the other, to be paid directly by the respective parties as and when due (provided,
however, that the Sellers may elect to pay their portion from the Partnership, with such payment to
result in an adjustment to the Purchase Price at Closing). The parties agree that the Partnership
shall control the engagement of Avail Consulting, LLC per the engagement letter, with good faith
consideration of comment by Buyer, and in the event that the final Appraisal sets forth more than
one valuation, then the midpoint or average of such valuations shall be fair market value of the
Partnership Group and its assets (including the interests in the Joint Ventures) as of 12:01 am on
January 1, 2005. The difference between the fair market valuation from the final, delivered
Appraisal and the fair market valuation used to establish the Tax payable
accrual reflected on the Latest Balance Sheet shall be the basis for calculating any necessary
adjustment to the Tax payable accrual reflected on the Latest Balance Sheet. Any such adjustment
shall be reflected in the June Financial Statements. Each of the Sellers, on the one hand, and
Buyer, on the other hand, shall cooperate with Avail Consulting, LLC and shall make available to
Avail Consulting, LLC any information requested by Avail Consulting, LLC in connection with the
foregoing. Sellers agree that the delivery of the Appraisal not later than 10 days prior to the
Closing Date will be a condition precedent to Buyer’s obligation to consummate the transactions
contemplated by this Agreement, but Buyer agrees and acknowledges that a delay in receiving the
Appraisal past ten days prior to October 31, 2005 shall effect an extension of the Closing Date one
day for every day of such delay, per Section 10.01.

Section 7.16. Insurance Policy.

     (a) Immediately following the execution of this Agreement, Sellers shall cause the Partnership
to execute the letter agreement with AIG Companies, as last delivered to Buyer, to issue an
insurance policy (the “Insurance Policy”) insuring, as “named insureds,” the Buyer, all Sellers and
all members of the Partnership Group against losses. The Insurance Policy shall be in
substantially the form attached to the letter agreement with AIG Companies, as last delivered to
Buyer. The Insurance Policy shall be delivered not later than 5 days prior to the Closing Date,
and the cost for the Insurance Policy shall be shared equally by Buyer, on the one hand, and the
Sellers, on the other, to be paid directly by the respective parties as and when due (provided,
however, that the Sellers may elect to pay their portion from the Partnership, with such payment to
result in an adjustment to the Purchase Price at Closing). Each of the Sellers, on the one hand,
and Buyer, on the other hand, shall cooperate with AIG Companies and shall make available to AIG
Companies any information requested by AIG Companies in connection with the foregoing. Sellers
agree that the delivery of the Insurance Policy not later than 5 days prior to the Closing Date
will be a condition precedent to Sellers’ and Buyer’s respective obligations to consummate the
transactions contemplated by this Agreement, but all parties agree and acknowledges that a delay in
receiving the Insurance Policy past five days prior to October 31, 2005 shall effect an extension
of the Closing Date one day for every day of such delay, per Section 10.01.

     (b) From and after the Closing, Buyer agrees to cause the Partnership to maintain the
Insurance Policy as issued (to the extent issued), with no amendments or modifications of any kind,
including without limitation modifications to the named insureds thereunder. Similarly, Buyer and
the Sellers agree to not take any action to alter the Insurance Policy in any manner after the
Closing.

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     (c) At any time prior to the issuance of the Insurance Policy, Buyer, in its sole discretion,
may give a written notice to the Sellers and the Partnership that Buyer does not wish to procure
the Insurance Policy. Upon receipt of such notice, the Partnership shall inform AIG that the
Insurance Policy should not be issued, and Buyer shall pay any cancellation fees or other fees due
to AIG and the insurance broker for the Partnership on account of such cancellation, but such fees
not to exceed $100,000.

     (d) The parties agree that any payment to an insured under the Insurance Policy shall belong
to the party that pays the “Tax Loss” (as such term is defined in the Insurance Policy) associated
with such payment.

ARTICLE 8

Other Agreements 

Section 8.01. Noncompetition. From and after the Closing Date and for a period of two years
thereafter, each of the Sellers (other than Natural Gas Partners V, L.P.) will not, and will cause
each of their Affiliates not to, directly or indirectly own, manage, operate, construct, finance,
join, control or participate in the ownership, management, operation or control of, or be employed
or engaged as an agent or consultant by, any Person, which is the same as, substantially the same
as, or substantially similar to the Business. Further, each of the Sellers (other than Natural Gas
Partners V, L.P.) will not,
and will cause their Affiliates not to, solicit directly or indirectly any current customers of the
Partnership for any business related to the Business. For the purposes of this Agreement, a Person
shall be deemed to be in competition with the Buyer only if the products or services of such
person, company or business entity are substantially similar in function or capability to the
products or services being offered, developed, manufactured or sold in connection with the
Business. The mere passive ownership, direct or indirect, of not more than 2% of the outstanding
stock of any publicly traded company shall not be a violation of this paragraph. Notwithstanding
anything herein to the contrary, the restrictions in this Section 8.01 shall apply only to the
reasonable and limited geographic area consisting of the areas within a 100-mile radius of the
Waskom Site. Each of the affected Sellers recognizes and agrees that any violation of the
covenants contained in this Section 8.01 will result in irreparable harm to Buyer for which money
damages will not alone be an adequate remedy and that Buyer shall be entitled to equitable relief
without the necessity of posting any bond therefor. Each of the affected Sellers and their
respective Affiliates acknowledge and agree that: (i) the scope of this Section 8.01 in time,
geography and types and limits of activities is reasonable and no greater than required for the
protection of the legitimate business interests of Buyer in the Business; (ii) it imposes no undue
hardship on any of the affected Sellers or any of their Affiliates; and (iii) if this Section 8.01
is found by any court having jurisdiction to be too broad in scope, whether as to activities, time
period, geographic area or otherwise, this Section 8.01 will nevertheless remain effective but will
be considered amended to the extent considered by such court to be reasonable, and will be fully
enforceable as so amended. It being understood that in the event any of the Sellers are employed
by Buyer or its Affiliates following the Closing, and such Seller is terminated by Buyer or its
Affiliates without cause, the prohibitions contained in this Section 8.01 shall no longer be
applicable to such Seller as of the date of such termination. It being further understood in the
event that any Seller enters into a written employment agreement with Buyer or its Affiliates
following the Closing, the provisions of any noncompetition restriction set forth in such
employment agreement shall control, and the provisions of this Section 8.01 shall no longer be
applicable to such Seller.

Section 8.02. Phase I Environmental Assessments. Prior to the Closing Date, at Buyer’s sole cost
and expense, Buyer may undertake Phase I environmental assessments (the “Phase I Environmental
Assessments”) with respect to any or all of the Real Property. The Phase I Environmental
Assessments will be undertaken by an environmental consultant selected by Buyer.

Section 8.03. Employees; Employee Benefits.

     (a) Sellers shall cause the Partnership to terminate (i) the Administaff Agreement and (ii)
the Employees’ continuing participation (other than as required by Applicable Law) in any
Administaff Plans, effective as of the Closing.

     (b) Within seven days prior to the Closing Date, Buyer shall send Sellers a written list of
the Employees that Buyer, or one of its Affiliates, desires to employ. On the Closing Date,
Sellers shall cause the

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Partnership to terminate all Employees, and any severance payments required
to be made by the Partnership to such terminated Employees, other than the Retained Employees,
shall be paid by the Partnership Group prior to the Closing. On the Closing Date, the Buyer, or
one of its Affiliates, shall offer employment to each of those individuals set forth on the list
delivered pursuant to this subsection (b) that satisfy Buyer’s, or its Affiliate’s, standard
employment requirements. All such employees that accept employment with Buyer, or one of its
Affiliates, are referred to herein as the “Retained Employees”.

     (c) For a period of twelve months commencing on the Closing Date, Buyer, or one of its
Affiliates shall:

          (i) provide the Retained Employees with compensation, benefits and terms and conditions of
employment that, in the aggregate, are substantially comparable to the compensation, benefits and
terms and conditions of employment enjoyed by the Retained Employees as of the day prior to the
Closing Date; and

          (ii) provide any Retained Employee whose employment with Buyer or an Affiliate is terminated
with severance benefits from Buyer or an Affiliate in an amount not less than the amount, if any,
that a similarly situated employee of Buyer or its Affiliates would be entitled to after giving
credit to such Retained Employee’s time and service with the Partnership Group (in the time and
service amounts recognized currently by the Partnership Group).

     (d) Sellers will cause to be adopted prior to the Closing Date, resolutions to terminate the
401(k) plan sponsored and maintained by the Partnership (the “Partnership 401(k) Plan”) at least
one day prior to the Closing Date. Such resolutions will provide that all participants will be
fully vested in their account balances under the Partnership 401(k) Plan. Such resolutions also
will authorize (i) the amendment of the Partnership 401(k) Plan to allow direct rollovers of
outstanding loans under such plan to the Buyer 401(k) Plan in which the Retained Employees will
participate, and (ii) distributions of Partnership 401(k) Plan account balances to participants as
soon as practicable following the Closing. Sellers will cause the termination of all other
Partnership Group Plans effective as of the Closing Date.

     (e) Effective as of the Closing, each Retained Employee will be entitled to participate in a
401(k) plan maintained by Buyer or its Affiliates which is intended to qualify under Section 401(a)
and Section 401(k) of the Code (the “Buyer 401(k) Plan”) on the same basis as similarly situated
employees of Buyer or its Affiliates. If permitted to do so under the Buyer 401(k) Plan, Buyer or
its Affiliates shall take all such action as may be necessary to accept rollover contributions
directed by Retained Employees from the Partnership 401(k) Plan, including direct rollovers of
outstanding plan loans.

     (f) To the full extent permitted by Applicable Law and Buyer’s or its Affiliate’s plans, the
Retained Employees shall be credited for time and service with the Partnership Group (in the
amounts recognized currently by the Partnership Group) for measurements of eligibility and waiting
periods with respect to participation and coverage requirements applicable to the Retained
Employees under any health, welfare or severance plans maintained by Buyer or its Affiliates in
which the Retained Employees are eligible to participate after the Closing Date.

     (g) Buyer and Sellers acknowledge and agree that nothing contained in this Section 8.03 shall
be construed to limit in any way the ability of Buyer or its Affiliates, including any member of
the Partnership Group post-Closing, to terminate the employment of any Retained Employee from and
after the Closing Date or to terminate or modify any employee benefit plan or program of Buyer or
its Affiliates, including any member of the Partnership Group, after the Closing Date.

     (h) Buyer agrees to provide COBRA continuation coverage for any Employee who experiences a
qualifying event in connection with the transaction contemplated by this Agreement for the period
of time required by law subject to such Employee’s payment of their own premiums therefor.

     (i) This Article 8 is expressly not intended to provide any Employee, Retained Employee or any
other employee of any member of the Partnership Group any cause of action against Buyer, Sellers,
the Partnership Group

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or their Affiliates, and the duties and obligations of Sellers and Buyer to
each other are intended to be enforceable only between them, and do not grant any benefits, duties
or obligations to any third party, including but not limited to the Employees or the Retained
Employees.

ARTICLE 9

Conditions to Closing

Section 9.01. Conditions to Obligations of Buyer and Sellers. The obligations of Buyer and Sellers
to consummate the Closing are subject to the satisfaction of the following conditions:

     (a) Any applicable waiting period under the HSR Act relating to the transactions contemplated
hereby shall have expired or been terminated.

     (b) (i) No provision of Applicable Law and no judgment, injunction, order, decree, ruling or
charge shall prohibit or prevent the consummation of the transactions contemplated by this
Agreement or the consummation of the Closing and (ii) no action, suit, or proceeding initiated by a
Governmental Authority shall be pending before any Governmental Authority seeking an injunction,
judgment, order, decree, ruling, or charge that would prohibit or prevent the consummation of the
transactions contemplated by this Agreement.

     (c) The Insurance Policy shall have been issued and delivered to the Partnership, unless Buyer
exercises its option not to have the Insurance Policy issued pursuant to Section 7.16(c).

Section 9.02. Conditions to Obligation of Buyer. The obligation of Buyer to consummate the Closing
is subject to the satisfaction of the following further conditions:

     (a)      (i) Sellers and the Partnership Group shall have performed in all material respects all of
their obligations hereunder required to be performed by them on or prior to the Closing Date, (ii)
each of the representations and warranties of Sellers and the Partnership contained in this
Agreement shall be true and correct in all material respects at and as of the Closing Date and
(iii) Buyer shall have received certificates, signed by each Seller and an officer of the
Partnership, to the foregoing effect.

     (b) Buyer shall have received all documents it may reasonably request relating to the
existence and good standing of the Partnership Group and the Joint Ventures and the authority of
Sellers and the Partnership Group to enter into this Agreement, all in form and substance
reasonably satisfactory to Buyer.

     (c) Each Seller shall have delivered a certification that meets the requirements of Treasury
Regulation Section 1.1445-2(b)(2) to the effect that such Seller is not a “foreign person” for
purposes of Section 1445 of the Code and the Treasury Regulations thereunder.

     (d) The Partnership will deliver to Buyer the resignations of all officers, directors and
managers, as applicable, of the Partnership Group from their positions with the Partnership Group
at or prior to the Closing Date.

     (e) Sellers shall deliver to Buyer any certificates or other instruments evidencing the
Interests, appropriately endorsed for transfer to Buyer, and the Partnership Group shall deliver to
Buyer any certificates or other instruments evidencing the Partnership Group’s ownership interests
in the Subsidiaries and the Joint Ventures.

     (f) The consents set forth on Schedule 9.02(f) shall have been obtained.

     (g) The consent of the insurer under the Environmental Policy to the updated identification of
Partnership as the “insured” and the “named insured” thereunder and the identification of the other
members of the Partnership Group and Buyer and its Affiliates as “additional insureds” thereunder.

     (h) All Liens, other than Permitted Liens, on the assets of the Partnership Group, including
any Liens under the Bank Credit Agreement, shall have been released.

33

 

     (i) There shall not have been, since the Latest Balance Sheet Date, a Material Adverse Effect.

     (j) The Phase I Environmental Assessments, if undertaken pursuant to Section 8.02, shall not
have revealed by Closing any conditions that, in the aggregate, have an adverse effect on the
business, assets, financial condition or results of operations of the Business, the Partnership
Group or the Joint Ventures, taken as a whole, in excess of $4,000,000.

     (k) The Appraisal shall have been completed and delivered to the Partnership (with a copy to
the Buyer), and any necessary adjustment to the Tax payable accrual reflected on the Latest Balance
Sheet shall be reflected on the June Financial Statements.

     (l) The June Financial Statements shall have been delivered to Buyer.

     (m) Evidence of the pre-Closing cancellation or exercise of the options, warrants and similar
rights referred to in Section 2.02(a).

Section 9.03. Conditions to Obligation of Sellers. The obligation of Sellers to consummate the
Closing is subject to the satisfaction of the following further conditions:

     (a)      (i) Buyer shall have performed in all material respects all of its obligations hereunder
required to be performed by it at or prior to the Closing Date, (ii) each of the representations
and warranties of Buyer contained in this Agreement and in any certificate or other writing
delivered by Buyer pursuant hereto shall be true in all material respects at and as of the Closing
Date, as if made at and as of such date and (iii) Sellers shall have received a certificate signed
by an officer of Buyer to the foregoing effect.

     (b) Sellers shall have received all documents they may reasonably request relating to the
existence and good standing of Buyer and the authority of Buyer for this Agreement, all in form and
substance reasonably satisfactory to Sellers.

ARTICLE 10

Termination 

Section 10.01. Grounds for Termination. This Agreement may be terminated at any time prior to the
Closing:

     (a) by mutual written agreement of Sellers and Buyer;

     (b) by either Sellers or Buyer if the Closing shall not have been consummated on or before
October 31, 2005; provided however, that this date shall be extended, if applicable, by adding to
such date the amount of days that (i) any dispute between the parties is under consideration by the
Title Defect Arbitrator, beginning on the date such dispute was submitted and ending on the date of
resolution of such dispute, (ii) delivery of the Appraisal is delayed past 10 days prior to October
31, 2005, (iii) delivery of the June Financial Statements is delayed past 5 days prior to October
31, 2005, (iv) delivery of the Insurance Policy is delayed past 5 days prior to October 31, 2005,
and (v) any applicable waiting period under the HSR Act relating to the transactions contemplated
hereby extends beyond October 31, 2005, provided, however, that in no event shall such date be
extended for delay in receipt of approval under the HSR Act, beyond November 30, 2005;

     (c) by either Sellers or Buyer if consummation of the transactions contemplated hereby would
violate any nonappealable final order, decree or judgment of any court or governmental body having
competent jurisdiction; or

     (d) by Buyer or Sellers pursuant to Section 2.05(g).

     The party desiring to terminate this Agreement pursuant to clauses 10.01(b), (c) or (d) shall
give notice of such termination to the other party.

34

 

Section 10.02. Effect of Termination. If this Agreement is terminated as permitted by Section 10.01, such termination shall be without
liability of either party (or any interest owner, member, partner, stockholder, director, officer,
employee, agent, consultant or representative of such party) to the other party to this Agreement;
provided that if such termination shall result from the willful (i) failure of either party to
fulfill a condition to the performance of the obligations of the other party, (ii) failure to
perform a covenant of this Agreement or (iii) breach by either party hereto of any representation
or warranty or agreement contained herein, such party shall be fully liable for any and all Damages
incurred or suffered by the other party as a result of such failure or breach. In addition to the
survival of any other provisions as stated herein, the provisions of Sections 2.07, 2.08, 6.01,
6.03, 11.05, 11.06, 11.07 and 11.08 shall survive any termination hereof pursuant to Section 10.01.

ARTICLE 11

Indemnification

Section 11.01. Indemnification by Sellers. Each of the Sellers, jointly and severally, hereby
agree to indemnify and hold harmless the Buyer and its Affiliates and its and their managers,
directors, officers, members, shareholders, employees and agents (collectively, the “Buyer
Indemnitees”) from and after the Closing Date from and against, and shall reimburse the Buyer
Indemnitees for, any and all Losses, including without limitation any Losses arising out of the
strict liability of any Person, paid, imposed on or incurred by the Buyer Indemnitees, directly or
indirectly, resulting from, caused by, arising out of, or in any way relating to and with respect
to any of, or any allegation by any third party of, the following:

     (a) any breach of or inaccuracy in any representation or warranty on the part of any of the
Sellers or the Partnership Group under this Agreement (excluding a breach of the representation and
warranty set forth in Sections, 3.21 and 3.24);

     (b) any non-fulfillment of any post-Closing covenant or agreement on the part of any of the
Sellers or the Partnership Group under this Agreement.

It shall not be necessary for Losses to be suffered as a result of or in connection with actions
taken, made or threatened by any third party or Governmental Authority for such Losses to be
indemnifiable under this Article XI.

Section 11.02. Indemnification by Buyer. Buyer hereby agrees to indemnify and hold harmless
Sellers, and their Affiliates (collectively, the “Seller Indemnitees”) from and after the Closing
Date from and against, and shall reimburse the Seller Indemnitees for, any and all Losses,
including without limitation any Losses arising out of the strict liability of any Person, paid,
imposed on or incurred by the Seller Indemnitees, directly or indirectly, resulting from, caused
by, arising out of, or in any way relating to and with respect to any of, or any allegation by any
third party of, the following:

     (a) any breach of or inaccuracy in any representation or warranty on the part of Buyer under
this Agreement; and

     (b) any non-fulfillment of any post-Closing covenant or agreement on the part of Buyer under
this Agreement.

Section 11.03. Procedures for Indemnification.

     (a) If there occurs an event that either party asserts is an indemnifiable event pursuant to
Sections 11.01 or 11.02, the party seeking indemnification (the “Indemnitee”) shall promptly
provide notice (the “Notice of Claim”) to the other party or parties obligated to provide
indemnification (the “Indemnifying Party”). Providing the Notice of Claim shall be a condition
precedent to any liability of the Indemnifying Party hereunder, and the failure to provide prompt
notice as provided herein will relieve the Indemnifying Party of its obligations hereunder but only
if and to the extent that such failure materially prejudices the Indemnifying Party hereunder. In
case any
such action shall be brought against any Indemnitee and it shall provide a Notice of Claim to
the Indemnifying Party of the commencement thereof, the Indemnifying Party shall be entitled to
participate therein and, to the extent that it shall wish, to assume the defense thereof, with
counsel reasonably satisfactory to such Indemnitee and, after notice

35

 

from the Indemnifying Party to
such Indemnitee of such election so to assume the defense thereof, the Indemnifying Party shall not
be liable to the Indemnitee hereunder for any legal expenses of other counsel or any other
expenses, in each case subsequently incurred by the Indemnitee, in connection with the defense
thereof other than reasonable costs of investigation; provided, however, that if the Indemnitee
reasonably believes that counsel for the Indemnifying Party cannot represent both the Indemnitee
and the Indemnifying Party because such representation would be reasonably likely to result in a
conflict of interest, then the Indemnitee shall have the right to defend, at the sole cost and
expense of the Indemnifying Party, such action by all appropriate proceedings. The Indemnitee
agrees to reasonably cooperate with the Indemnifying Party and its counsel in the defense against
any such asserted liability. In any event, the Indemnitee shall have the right to participate at
its own expense in the defense of such asserted liability. No Indemnifying Party, in the defense
of any such claim or litigation, shall, except with the written consent of each Indemnitee, consent
to entry of any judgment or enter into any settlement that does not include as an unconditional
term thereof the release of the Indemnitee from all Liability in respect to such claim or
litigation or that does not solely require the payment of money damages by the Indemnifying Person
with no further liability or obligation on the part of the Indemnitee. The Indemnifying Party
agrees to afford the Indemnitee and its counsel, at the Indemnitee’s sole expense, the opportunity
to be present at, and to participate in, conferences with all Persons, including any Governmental
Authority, asserting any Claim against the Indemnitee or conferences with representatives of or
counsel for such Persons. In no event shall the Indemnifying Party, without the written consent
of the Indemnitee, settle any Claim on terms that provide for (i) a criminal sanction against the
Indemnitee, (ii) injunctive relief affecting the Indemnitee, or (iii) prospective action or
inaction by the Indemnitee.

     (b) Upon receipt of a Notice of Claim, the Indemnifying Party shall have thirty calendar days
(or such shorter period as may be appropriate under the circumstances) to contest its
indemnification obligation with respect to such claim, or the amount thereof, by written notice to
the Indemnitee (the “Contest Notice”); provided, however, that if, at the time a Notice of Claim is
submitted to the Indemnifying Party the amount of the Loss in respect thereof has not yet been
determined, such thirty day period in respect of, but only in respect of the amount of the Loss,
shall not commence until a further written notice (the “Notice of Liability”) has been sent or
delivered by the Indemnitee to the Indemnifying Party setting forth the amount of the Loss incurred
by the Indemnitee that was the subject of the earlier Notice of Claim. Such Contest Notice shall
specify the reasons or bases for the objection of the Indemnifying Party to the claim, and if the
objection relates to the amount of the Loss asserted, the amount, if any, that the Indemnifying
Party believes is due the Indemnitee, and any undisputed amount shall be promptly paid over to the
Indemnitee. If no such Contest Notice is given within such thirty day period, the obligation of
the Indemnifying Party to pay the Indemnitee the amount of the Loss set forth in the Notice of
Claim, or subsequent Notice of Liability, shall be deemed established and accepted by the
Indemnifying Party.

     (c) If the Indemnifying Party fails to assume the defense of such Claim or, having assumed the
defense and settlement of such Claim, fails reasonably to contest such Claim in good faith, the
Indemnitee, without waiving its right to indemnification, may assume, at the cost of the
Indemnifying Party, the defense and settlement of such Claim; provided, however, that (i) the
Indemnifying Party shall be permitted to join in the defense and settlement of such Claim and to
employ counsel at its own expense, (ii) the Indemnifying Party shall cooperate with the Indemnitee
in the defense and settlement of such Claim in any manner reasonably requested by the Indemnitee
and (iii) the Indemnitee shall not settle such Claim without obtaining the prior written consent of
the Indemnifying Party, which shall not be unreasonably withheld or delayed.

     (d) The Indemnifying Party shall make any payment required to be made under this Article XI in
cash and on demand. Any payments required to be paid by an Indemnifying Party under this Article
that are not paid within fifteen business days of the date on which such obligation becomes final
shall thereafter be deemed delinquent, and the Indemnifying Party shall pay to the Indemnitee,
immediately upon demand, interest at the rate of ten percent per annum, not to exceed the maximum
nonusurious rate allowed by applicable Law, from the date such payment becomes delinquent to the
date of payment of such delinquent sums, which interest shall be considered to be Losses of the
Indemnitee.

Section 11.04. Survival.

     (a) Each covenant and agreement of Sellers set forth in this Agreement, or in any of the
documents or instruments contemplated hereby, to be performed after the Closing, as well as any
related indemnification obligations hereunder, will survive the Closing until such time as such
performance is no longer required. The

36

 

liability of Sellers for their indemnification obligations
arising under this Agreement in respect of inaccuracies of representations or warranties shall be
limited to claims for which a Buyer Indemnitee delivers written notice to the Sellers’
Representative on or before the twelve month anniversary date of the Closing Date; provided,
however, that any indemnification obligation relating to the representations and warranties
specified in Sections 3.02, 3.05 and 3.06 shall be limited to claims for which a Buyer Indemnitee
delivers written notice to the Sellers’ Representative on or before the second anniversary of the
Closing Date.

     (b) Each covenant and agreement of Buyer set forth in this Agreement, or in any of the
documents or instruments contemplated hereby, to be performed after the Closing, as well as any
related indemnification obligations hereunder, will survive the Closing until such time as such
performance is no longer required. The liability of the Buyer for the Buyer’s indemnification
obligations arising under this Agreement in respect of inaccuracies of representations and
warranties shall be limited to claims for which a Seller Indemnitee delivers written notice to the
Buyer on or before the twelve month anniversary date of the Closing Date.

     (c) Any matter as to which a claim has been asserted by written notice to the Indemnifying
Party that is pending or unresolved at the end of any applicable limitation period shall continue
to be covered by this Article XI until such matter is finally terminated or otherwise resolved
under this Agreement or by a court of competent jurisdiction and any amounts payable hereunder are
finally determined and paid.

Section 11.05. Limitations on Indemnification.

     (a) No Indemnifying Party hereto shall have any liability with respect to, or obligation to
indemnify for, Losses under Article XI hereof unless the cumulative aggregate amount of the Loss or
Losses from the Closing Date through the date of indemnification and for which such Indemnifying
Party would, but for the provisions of this Section 11.05, be liable exceeds $500,000, but in such
event the Indemnifying Party’s obligations under Article XI hereof will be the cumulative aggregate
amount of such Loss or Losses in excess of $500,000; provided, however, that the deductible
provided by this section shall not apply to any Loss or Losses related to a breach of a covenant in
Sections 7.13, 7.16(b) (to the extent the Insurance Policy is actually issued) and 8.01.

     (b) Notwithstanding anything in this Agreement to the contrary, (i) the maximum aggregate
indemnification liability of Sellers, on the one hand, and the Buyer, on the other hand, shall not
exceed $7,000,000, provided, however, that such cap shall not apply to any Loss or Losses related
to a breach of a representation in Sections 3.02, 3.05, 3.06 or any Loss or Losses related to a
breach of a covenant in Sections 7.13, 7.16(b) (to the extent the Insurance Policy is actually
issued) and 8.01, which in any such case shall be limited to the Purchase Price, and (ii) the
maximum aggregate indemnification liability of each Seller under this Article XI for any reason
shall not exceed the portion of the Purchase Price actually received by such Seller.

     (c) Notwithstanding anything in this Agreement to the contrary, Sellers shall not provide any
indemnification hereunder with respect to the representations and warranties set forth in Sections
3.21 and 3.24.

     (d) Notwithstanding anything in this Agreement to the contrary, Sellers shall not provide any
indemnification hereunder with respect to any Loss that arises out of facts and circumstances that
could form the basis of a reasonable claim under the Insurance Policy, whether or not such Loss has
actually been covered by the Insurance Policy.

Section 11.06. Exclusive Remedies.

OTHER THAN WITH RESPECT TO FRAUD, WILLFUL MISCONDUCT, INTENTIONAL MISSTATEMENT OR OMISSION OR
CRIMINAL ACTIVITY, FROM AND AFTER THE CLOSING, THE REMEDIES OF THE PARTIES SPECIFICALLY PROVIDED
FOR BY THIS ARTICLE XI SHALL BE THE SOLE AND EXCLUSIVE REMEDIES OF THE PARTIES FOR ALL MATTERS
COVERED BY THIS AGREEMENT (WITH THE EXCEPTION OF THE MATTERS DISCUSSED IN SECTION 7.06); PROVIDED,
HOWEVER, THAT NOTHING HEREIN SHALL LIMIT A PARTY’S RIGHT TO SEEK SPECIFIC PERFORMANCE OR INJUNCTIVE
RELIEF IN CONNECTION WITH ANOTHER PARTY’S OBLIGATIONS UNDER THIS AGREEMENT, INCLUDING WITH RESPECT
TO A VIOLATION OF SECTION 8.01.

37

 

Section 11.07. Inconsistent Provisions. The provisions of this Article XI shall govern and control
over any inconsistent provisions of this Agreement.

Section 11.08. Right to Indemnification Not Affected by Knowledge; Knowledge of Breach. The right
to indemnification in accordance with the provisions of this Article XI will not be affected by any
investigation conducted with respect to, or any knowledge acquired (or capable of being acquired)
at any time, whether before or after the Closing Date, with respect to the accuracy or inaccuracy
of or compliance with, any representation, warranty, covenant or obligation set forth in this
Agreement. If at any time prior to Closing, any of the parties hereto has knowledge of any facts,
circumstances or situations which constitute a breach of any representation, warranty or covenant
hereunder, such party shall give the other parties prompt notice thereof.

Section 11.09. Express Negligence.

THE FOREGOING INDEMNITIES SET FORTH IN THIS ARTICLE ARE INTENDED TO BE ENFORCEABLE AGAINST THE
PARTIES IN ACCORDANCE WITH THE EXPRESS TERMS AND SCOPE THEREOF, NOTWITHSTANDING ANY EXPRESS
NEGLIGENCE RULE OR ANY SIMILAR DIRECTIVE THAT WOULD PROHIBIT OR OTHERWISE LIMIT INDEMNITIES BECAUSE
OF THE SIMPLE OR GROSS NEGLIGENCE (WHETHER SOLE, CONCURRENT, ACTIVE OR PASSIVE) OR OTHER FAULT OR
STRICT LIABILITY OF ANY INDEMNIFIED PARTY. THE PARTIES HERETO ACKNOWLEDGE THAT THE INDEMNITIES SET
FORTH HEREIN MAY RESULT IN THE INDEMNITY OF A PARTY FOR ITS SIMPLE OR GROSS NEGLIGENCE (WHETHER
SOLE, CONCURRENT, ACTIVE OR PASSIVE) OR OTHER FAULT OR STRICT LIABILITY OF THE INDEMNIFIED PARTY.

ARTICLE 12

Miscellaneous 

Section 12.01. Purchase Price Adjustment. Any amount paid by Sellers or Buyer under Section 11.01
shall be treated as an adjustment to the Purchase Price unless otherwise required by Applicable
Law.

Section 12.02. Notices. Any notice, demand or communication required or permitted to be given by
any provision of this Agreement will be in writing and will be deemed to have been given and
received when delivered personally or by telefacsimile to the party designated to receive such
notice, or on the date following the day sent by overnight courier, or on the third (3rd) business
day after the same is sent by certified mail, postage and charges prepaid, directed to the
following addresses or to such other or additional addresses as any party might designate by
written notice to the other parties:

	 	 	 
	If to Buyer, to:

	 	Mr. Ruben S. Martin
	 

	 	Martin Operating Partnership L.P.
	 

	 	4200 Stone Road
	 

	 	Kilgore, Texas 75662
	 

	 	Telephone: 903-983-6200
	 

	 	Telefacsimile: 903-983-6262
	 
	 	 
	With a copy to:

	 	Neel Lemon
	 

	 	Baker Botts L.L.P.
	 

	 	2001 Ross Avenue, Suite 700
	 

	 	Dallas, Texas 75201
	 

	 	Telephone: 214-953-6954
	 

	 	Telefacsimile: 214-661-4954
	 
	 	 
	If to the Partnership or Partnership

	 	Mr. Robert E. Dunn
	Group

	 	2350 Airport Freeway, Suite 200

38

 

	 	 	 
	(pre-Closing), to:

	 	Bedford, Texas 76022
	 

	 	Telephone: 817-684-0158 x 227
	 

	 	Telefacsimile: 817-399-0810
	 
	 	 
	With copies to:

	 	Mr. Christopher D. Ray
	 

	 	Natural Gas Partners, L.L.C.
	 

	 	125 East John Carpenter Fwy, Suite 600
	 

	 	Irving, Texas 75062
	 

	 	Telephone: (972) 432-1444
	 

	 	Telefacsimile: (972) 432-1441
	 
	 	 
	And

	 	Mr. Jeffrey A. Zlotky
	 

	 	Thompson & Knight LLP
	 

	 	1700 Pacific Ave., Suite 3300
	 

	 	Dallas, Texas 75201
	 

	 	Telephone: (214) 969-1384
	 

	 	Telefacsimile: (214) 969-1751
	 
	 	 
	If to the Seller

	 	Natural Gas Partners V, L.P.
	Representatives

	 	125 East John Carpenter Fwy, Suite 600
	(post-Closing), to:

	 	Irving, Texas 75062
	 

	 	Attn: Christopher D. Ray
	 

	 	Telephone: (972) 432-1444
	 

	 	Telefacsimile: (972) 432-1441
	 
	 	 
	And

	 	Mr. Robert E. Dunn
	 

	 	4621 Edmonson Ave.
	 

	 	Dallas, Texas 75209
	 

	 	Telephone: 214-358-2264
	 

	 	Telefacsimile: 214-358-2264
	 
	 	 
	With copies to:

	 	Mr. Jeffrey A. Zlotky
	 

	 	Thompson & Knight LLP.
	 

	 	1700 Pacific Ave., Suite 3300
	 

	 	Dallas, Texas 75201
	 

	 	Telephone: (214) 969-1384
	 

	 	Telefacsimile: (214) 969-1751

Section 12.03. Amendments and Waivers.

     (a) Any provision of this Agreement may be amended or waived if, but only if, such amendment
or waiver is in writing and is signed, in the case of an amendment, by each party to this
Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective.

     (b) No failure or delay by any party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or privilege. The
rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

Section 12.04. Expenses. Except as otherwise provided herein, all costs and expenses incurred in
connection with this Agreement shall be paid by the party incurring such cost or expense.

39

 

Section 12.05. Successors and Assigns. The provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns.
Notwithstanding the foregoing, neither party may assign, delegate or otherwise transfer any of its
rights or obligations under this Agreement without the consent of each other party hereto;
provided, however that the parties specifically consent to an assignment by Buyer to an Affiliate
of Buyer.

Section 12.06. Governing Law. This Agreement shall be governed by and construed in accordance with
the law of the State of Texas, without regard to the conflicts of law rules that would require the
application of the law of another state.

Section 12.07. Jurisdiction. The parties hereto agree that any suit, action or proceeding seeking
to enforce any provision of, or based on any matter arising out of or in connection with, this
Agreement or the transactions contemplated hereby shall be brought in Tarrant County, Texas, and
that any cause of action arising out of this Agreement shall be deemed to have arisen from a
transaction of business in the State of Texas, and each of the parties hereby irrevocably consents
to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such
suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any
objection that it may now or hereafter have to the laying of the venue of any such suit, action or
proceeding in any such court or that any such suit, action or proceeding brought in any such court
has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be
served on any party anywhere in the world, whether within or without the jurisdiction of any such
court. Without limiting the foregoing, each party agrees that service of process on such party as
provided in Section 11.01 shall be deemed effective service of process on such party.

Section 12.08. Counterparts; Effectiveness; Third Party Beneficiaries. This Agreement may be
signed in any number of counterparts, each of which shall be an original, with the same effect as
if the signatures thereto and hereto were upon the same instrument. This Agreement shall become
effective when each party hereto shall have received a counterpart hereof signed by the other party
hereto. Until and unless each party has received a counterpart hereof signed by the other party
hereto, this Agreement shall have no effect and no party shall have any right or obligation
hereunder (whether by virtue of any other oral or written agreement or other communication). No
provision of this Agreement is intended to confer any rights, benefits, remedies, obligations, or
liabilities hereunder upon any Person other than the parties hereto and their respective successors
and assigns.

Section 12.09. Entire Agreement. This Agreement and any exhibits and schedules hereto constitutes
the entire agreement between the parties with respect to the subject matter of this Agreement and
supersedes all prior agreements and understandings, both oral and written, between the parties with
respect to the subject matter of this Agreement.

Section 12.10. Severability. If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain
in full force and effect and shall in no way be affected, impaired or invalidated so long as the
economic or legal substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party. Upon such a determination, the parties shall negotiate in good
faith to modify this Agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner in order that the transactions contemplated hereby be consummated
as originally contemplated to the fullest extent possible.

Section 12.11. Disclosure Schedules. Partnership has or may have set forth information on a
Schedule in a section thereof that corresponds to the section of this Agreement to which it
relates. The parties acknowledge and agree that (a) the Schedules to this Agreement may include
certain items and information solely for informational purposes for the convenience of Buyer and
(b) the disclosure by Sellers of any matter in the Schedules shall not be deemed to constitute an
acknowledgment by Sellers that the matter is required to be disclosed by the terms of this
Agreement or that the matter is material.

[Remainder of Page Intentionally Left Blank.]

40

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 
	 
	 	BUYER
	 
	 	 
	 
	 	MARTIN OPERATING PARTNERSHIP L.P.
	 
	 	 
	 
	 	By: Martin Operating GP LLC, its general partner
	 
	 	 
	 
	 	By: Martin Midstream Partners L.P., its sole member
	 
	 	 
	 
	 	By: Martin Midstream GP LLC, its general partner

	 	 	 	 	 
	 
	 	By:	 	/s/ Robert D. Bondurant 
	 	 	 	 	 
	 

	 	Name:	 	Robert D. Bondurant
	 	 	 	 	 
	 
	 	Title:	 	Executive Vice President and CFO
	 	 	 	 	 

	 	 	 
	 
	 	SELLERS
	 
	 	/s/ Robert E. Dunn 
	 	 	 
	 
	 	Robert E. Dunn
	 
	 	 
	 
	 	/s/ William J. Diehnelt 
	 	 	 
	 
	 	William J. Diehnelt
	 
	 	 
	 
	 	/s/ Gene A. Adams
	 	 	 
	 
	 	Gene A. Adams
	 
	 	 
	 
	 	/s/ Philip D. Gettig
	 	 	 
	 
	 	Philip D. Gettig
	 
	 	 
	 
	 	/s/ Sharon L. Taylor
	 	 	 
	 
	 	Sharon L. Taylor
	 
	 	 
	 
	 	/s/ Scott A. Southard
	 	 	 
	 
	 	Scott A. Southard
	 
	 	 
	 

	 	NATURAL GAS PARTNERS V, L.P.
	 
	 	 
	 
	 	By: G.F.W. Energy V, L.P., General Partner
	 
	 	By: GFW V, L.L.C., General Partner

	 	 	 	 	 
	 
	 	By:	 	/s/ Kenneth A. Hersh 
	 	 	 	 	 
	 

	 	Name:	 	Kenneth A. Hersh 
	 	 	 	 	 
	 

	 	 	 	Authorized Member

41

 

	 	 	 
	 

	 	PARTNERSHIP
	 
	 	 
	 

	 	PRISM GAS SYSTEMS I, L.P.
	 
	 	 
	 

	 	By: Prism Gas Systems GP, L.L.C., its general partner

	 	 	 	 	 
	 
	 	By:	 	/s/ Robert E. Dunn
	 	 	 	 	
	 
	 	Name:	 	Robert E. Dunn  
	 	 	 	 	 
	 
	 	Title:	 	President 
	 	 	 	 	 

42Supplementary Terms Notice

                                         PERPETUAL TRUSTEES CONSOLIDATED LIMITED
                                                                       (Trustee)

                                                      CRUSADE MANAGEMENT LIMITED
                                                                       (Manager)

                                                         ST. GEORGE BANK LIMITED
                                                               (Approved Seller)

                                                         ST. GEORGE BANK LIMITED
                                                                      (Servicer)

                                                         ST. GEORGE BANK LIMITED
                                                                   (Indemnifier)

                                                ST. GEORGE CUSTODIAL PTY LIMITED
                                                                     (Custodian)

                                                                    P.T. LIMITED
                                                              (Security Trustee)

                                                            THE BANK OF NEW YORK
                                                                  (Note Trustee)

                                              Crusade Global Trust No. 2 of 2005

                                                          ALLENS ARTHUR ROBINSON
                                                               The Chifley Tower
                                                                2 Chifley Square
                                                               Sydney  NSW  2000
                                                                       Australia
                                                           Tell  61  2 9230 4000
                                                            Fax  61  2 9230 5333

Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
--------------------------------------------------------------------------------

TABLE OF CONTENTS

1.   INTRODUCTION                                                              1

2.   DEFINITIONS AND INTERPRETATION                                            2
   2.1    Definitions                                                          2
   2.2    Interpretation                                                      26
   2.3    Limitation of liability                                             26
   2.4    Knowledge of Trustee                                                27
   2.5    Business Day Convention                                             27
   2.6    Hedge Agreements                                                    28
   2.7    Australian Financial Services Licence                               29

3.   DIRECTION AND TRUST BACK                                                 29

4.   NOTES                                                                    29
   4.1    Conditions of Notes                                                 29
   4.2    Summary of conditions of Notes                                      29
   4.3    Issue of Notes                                                      31
   4.4    Trustee's Covenant to Noteholders and the Note Trustee              32
   4.5    Repayment of Notes on Payment Dates                                 32
   4.6    Final Redemption                                                    32
   4.7    Period During Which Interest Accrues                                33
   4.8    Calculation of Interest                                             33
   4.9    Step-Up Margin                                                      34
   4.10   Aggregate receipts                                                  34

5.   CASHFLOW ALLOCATION METHODOLOGY                                          35
   5.1    Total Available Funds                                               35
   5.2    Excess Available Income - Reimbursement of Charge Offs and
             Principal Draws                                                  36
   5.3    Excess Distribution                                                 37
   5.4    Initial Principal Distributions                                     37
   5.5    Principal Distributions prior to Stepdown Date                      38
   5.6    Principal distributions on and after Stepdown Date                  39
   5.7    Final Maturity Date                                                 40
   5.8    Redraws and Further Advances                                        41
   5.9    Determination Date - Payment Shortfall                              42
   5.10   Liquidity Draws                                                     42
   5.11   Allocating Liquidation Losses                                       43
   5.12   Insurance claims                                                    43
   5.13   Payments before Payment Date                                        43
   5.14   Charge Offs                                                         44
   5.15   Payments into US$ Account                                           44
   5.16   Payments out of US$ Account                                         44
   5.17   Rounding of amounts                                                 45
   5.18   Manager's Report                                                    45
   5.19   Payment Priorities Following an Event of Default:
             Security Trust Deed                                              45
   5.20   Prescription                                                        47

--------------------------------------------------------------------------------
                                                                          Page 1

Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
--------------------------------------------------------------------------------

   5.21   Accounting Procedures: Principal & Interest                         47
   5.22   Replacement of Currency Swap                                        47
   5.23   Notice of calculations                                              48
   5.24   Bond Factors                                                        48
   5.25   Loan Offset Interest                                                48

6.   MASTER TRUST DEED AND SERVICING AGREEMENT                                48
   6.1    Completion of details in relation to Master Trust Deed              48
   6.2    Amendments to Master Trust Deed                                     50
   6.3    Amendments to the Servicing Agreement                               89
   6.4    Clause 6.14                                                         90

7.   CALL AND TAX REDEMPTION                                                  90
   7.1    Call of Class A Notes                                               90
   7.2    Call of Class B Notes                                               90
   7.3    Call of Class C Notes                                               91
   7.4    Tax Event                                                           91
   7.5    Full satisfaction                                                   92

8.   SUBSTITUTION AND REMOVAL OF PURCHASED RECEIVABLES                        92
   8.1    Approved Seller substitution                                        92
   8.2    Other substitutions                                                 93
   8.3    Selection criteria                                                  93
   8.4    Removal of Purchased Receivables - Top Ups                          94

9.   APPLICATION OF THRESHOLD RATE                                            95
   9.1    Calculation of Threshold Rate                                       95
   9.2    Setting Threshold Rate                                              95
   9.3    Loan Offset Deposit Accounts                                        95

10.  TITLE PERFECTION EVENTS                                                  95

11.  BENEFICIARY                                                              96
   11.1   Issue of Units                                                      96
   11.2   Residual Capital Unit                                               96
   11.3   Residual Income Unit                                                97
   11.4   Unit Register                                                       97

12.  NOTE TRUSTEE                                                             98
   12.1   Capacity                                                            98
   12.2   Exercise of rights                                                  98
   12.3   Representation and warranty                                         98
   12.4   Payments                                                            98
   12.5   Payment to be made on Business Day                                  98

13.  COMPLIANCE WITH SECURITY TRUST DEED                                      99

14.  CUSTODIAN AGREEMENT                                                      99

15.  MANAGER'S DIRECTIONS TO BE IN WRITING                                    99

16.  UNDERTAKINGS BY APPROVED SELLER AND SERVICER                             99

17.  TAX REFORM                                                               99

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   17.1   Taxation of trusts and consolidated groups                          99
   17.2   Amending Bill - taxation of trusts                                 100
   17.3   Group tax liabilities                                              101
   17.4   Evidence of tax sharing agreement                                  101
   17.5   Objective                                                          102
   17.6   Residual Income Beneficiary                                        102

18.  ACKNOWLEDGMENTS                                                         102

19.  GOVERNING LAW                                                           102

20.  COUNTERPARTS                                                            103

SCHEDULE 1                                                                   107

SCHEDULE 2                                                                   109
   Application for A$ Notes                                                  109
   Crusade Global Trust No. 2 of 2005                                        109

SCHEDULE 3                                                                   111
   Note Acknowledgment                                                       111
   Crusade Global Trust No. 2 of 2005                                        111

SCHEDULE 4                                                                   113
   Note Transfer and Acceptance                                              113
   Crusade Global Trust No. 2 of 2005                                        113

SCHEDULE 5                                                                   116

SCHEDULE 6                                                                   118
   Independent auditor's Annual Servicer Compliance Certificate to the
      Directors of Crusade Management Limited                                118

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1.   INTRODUCTION
--------------------------------------------------------------------------------

     This Supplementary Terms Notice is issued on ___________ 2005 pursuant and
     subject to the Master Trust Deed dated 14 March 1998 (the MASTER TRUST
     DEED) between the Trustee, the Manager, St. George, the Custodian, the
     Security Trustee and the Note Trustee.

     PERPETUAL TRUSTEES CONSOLIDATED LIMITED (ABN 81 004 029 841) of Level 7, 9
     Castlereagh Street, Sydney, New South Wales 2000 in its capacity as trustee
     of Crusade Global Trust No. 2 of 2005 (the TRUSTEE);

     CRUSADE MANAGEMENT LIMITED (ABN 90 072 715 916) of 4-16 Montgomery Street,
     Kogarah, New South Wales 2217 as Manager (the MANAGER);

     ST. GEORGE BANK LIMITED (ABN 92 055 513 070) of 4-16 Montgomery Street,
     Kogarah, New South Wales 2217 in its capacity as Servicer, Approved Seller
     and Indemnifier (ST. GEORGE);

     ST. GEORGE CUSTODIAL PTY LIMITED (ABN 87 003 347 411) of 4-16 Montgomery
     Street, Kogarah, New South Wales 2217 (the CUSTODIAN);

     P.T. LIMITED (ABN 67 004 454 666) of Level 7, 9 Castlereagh Street Sydney,
     New South Wales 2000 in its capacity as security trustee under the Security
     Trust Deed (the SECURITY TRUSTEE); and

     THE BANK OF NEW YORK of 101 Barclay Street, Floor 21 West, New York, New
     York 10286, United States of America (the NOTE TRUSTEE) which has agreed to
     act as note trustee in relation to Notes issued by the Trust under the Note
     Trust Deed and in accordance with this Supplementary Terms Notice.

     This Supplementary Terms Notice is issued by the Manager and applies in
     respect of Crusade Global Trust No. 2 of 2005.

     Each party to this Supplementary Terms Notice agrees to be bound by the
     Transaction Documents as amended by this Supplementary Terms Notice in the
     capacity set out with respect to them in this Supplementary Terms Notice or
     the Master Trust Deed.

     The Trustee and the Manager agree, and St. George, the Custodian and the
     Security Trustee acknowledge that the Approved Seller is to be an Approved
     Seller for the purposes of the Master Trust Deed, this Supplementary Terms
     Notice and the other Transaction Documents for the Trust.

     The Trustee and the Manager agree, and St. George, the Custodian and the
     Security Trustee acknowledge that the Servicer is to be a Servicer for the
     purposes of the Master Trust Deed, this Supplementary Terms Notice and the
     other Transaction Documents for the Trust.

     The Trustee and the Manager agree, and St. George, the Custodian and the
     Security Trustee acknowledge that the Custodian is to be a Custodian for
     the purposes of the Master Trust Deed, this Supplementary Terms Notice and
     the other Transaction Documents for the Trust.

     The Servicer agrees to service the Purchased Receivables and the Purchased
     Receivable Securities in accordance with the Servicing Agreement.

     The Note Trustee has agreed to act as note trustee in relation to the Class
     A-1 Notes issued by the Trust under the Note Trust Deed in accordance with
     this Supplementary Terms Notice.

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Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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     The Security Trustee has agreed to act as security trustee for the
     Mortgagees under the Security Trust Deed.

     The Trustees and the Manager agree, and St. George, the Custodian and the
     Security Trustee acknowledge that the Trust will be a TRUST for the
     purposes of the Transaction Documents.

     The parties acknowledge that the matters in clauses 3, 4, 5, 6, 7, 8, 9,
     10, 11, 14, 15, 16 and 17 of this Supplementary Terms Notice contain
     decisions not made by the Note Trustee.

2.   DEFINITIONS AND INTERPRETATION
--------------------------------------------------------------------------------

2.1  DEFINITIONS

     Unless otherwise defined in this Supplementary Terms Notice, words and
     phrases defined in the Master Trust Deed have the same meaning where used
     in this Supplementary Terms Notice.

     In this Supplementary Terms Notice, and for the purposes of the definitions
     in the Master Trust Deed, the following terms have the following meanings
     unless the contrary intention appears. These definitions apply only in
     relation to the Crusade Global Trust No. 2 of 2005, and do not apply to any
     other Trust (as defined in the Master Trust Deed).

     A$ CLASS A-1 INTEREST AMOUNT means, for any Quarterly Payment Date in
     relation to a Confirmation for Class A-1 Notes, the amount in Australian
     dollars which is calculated:

     (a)  on a daily basis at the applicable rate set out in the Currency Swap
          relating to the Class A-1 Notes which shall be AUD-BBR-BBSW, as
          defined in the ISDA Definitions, as at the first day of the Interest
          Period ending on (but excluding) that Payment Date with a designated
          maturity of 90 days (or, in the case of the first Interest Period, the
          rate will be determined by the linear interpolation of 30 days and 60
          days) plus the relevant Spread;

     (b)  on the aggregate of the A$ Equivalent of the Invested Amount of the
          Class A-1 Notes as at the first day of the Interest Period ending on
          (but excluding) that Payment Date; and

     (c)  on the basis of the actual number of days in that Interest Period and
          a year of 365 days.

     A$ EQUIVALENT means:

     (a)  in relation to an amount denominated or to be denominated in US$, the
          amount converted to (and denominated in) A$ at the A$ Exchange Rate;
          or

     (b)  in relation to an amount denominated or to be denominated in A$, the
          amount of A$.

     A$ EXCHANGE RATE means, on any date, the rate of exchange (set as at the
     commencement of the Currency Swap) applicable under the Currency Swap for
     the exchange of United States dollars for Australian dollars.

     A$ NOTEHOLDER means a Noteholder of an A$ Note.

     A$ NOTE means a Class A-2 Note, a Class B Note or a Class C Note.

     ACCRUED INTEREST ADJUSTMENT means, in relation to the Approved Seller, all
     interest and fees accrued on the Purchased Receivables up to (but
     excluding) the Closing Date which are unpaid as at the close of business on
     the Closing Date.

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Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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     AGENCY AGREEMENT means the Agency Agreement dated on or about the date of
     this Supplementary Terms Notice between the Trustee, the Manager, the Note
     Trustee, the Principal Paying Agent, the other Paying Agents, the Note
     Registrar and the Calculation Agent.

     ARREARS subsist in relation to a Receivable at any time if, at that time,
     the principal outstanding under that Receivable is greater than the
     scheduled principal balance for that Receivable, in each case as determined
     by the Servicer.

     ARREARS PERCENTAGE means, for any Payment Date:

     (a)  the aggregate Unpaid Balance of all Purchased Receivables which are in
          Arrears by 60 consecutive days or more as at the end of the Collection
          Period immediately preceding that Payment Date;

     divided by

     (b)  the aggregate Unpaid Balance of all Purchased Receivables as at the
          end of the Collection Period immediately preceding that Payment Date,

     expressed as a percentage.

     ASSET has the meaning in the Master Trust Deed and includes any Loan or any
     Mortgage specified in a Sale Notice or any Mortgage, Related Security or
     other rights with respect thereto which is acquired by the Trustee for the
     Trust, or any Authorised Investment acquired by the Trustee.

     ATTORNEY has the meaning given in the Security Trust Deed.

     AUTHORISED SIGNATORY means:

     (a)  in relation to the Note Trustee, any duly authorised officer of the
          Note Trustee and any other duly authorised person of the Note Trustee;

     (b)  in relation to the Principal Paying Agent, any duly authorised officer
          of the Principal Paying Agent and any other duly authorised person of
          the Principal Paying Agent;

     (c)  in relation to the Calculation Agent, any duly authorised officer of
          the Calculation Agent and any other duly authorised person of the
          Calculation Agent; and

     (d)  in relation to the Note Registrar, any duly authorised officer of the
          Note Registrar and any other duly authorised person of the Note
          Registrar.

     AVAILABLE INCOME means, in relation to the Trust for any Monthly Collection
     Period, the total of the following:

     (a)  the Finance Charge Collections for the Trust for that Monthly
          Collection Period; plus

     (b)  to the extent not included in paragraph (a):

          (i)  any amount received by or on behalf of the Trustee in relation to
               that Monthly Collection Period on or by the Monthly Payment Date
               immediately following the end of that Monthly Collection Period
               with respect to net receipts under any Interest Hedge (and for
               this purpose net receipts under the Basis Swap will be determined
               before any payment in Condition 4);

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Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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          (ii) any interest income received by or on behalf of the Trustee
               during that Monthly Collection Period in respect of moneys
               credited to the Collection Account in relation to the Trust;

          (iii) amounts in the nature of interest otherwise paid by the Approved
               Seller, the Servicer or the Manager to the Trustee during that
               Monthly Collection Period in respect of Collections held by it;

          (iv) all other amounts received by or on behalf of the Trustee during
               that Monthly Collection Period in respect of the Assets in the
               nature of income; and

          (v)  all amounts received by or on behalf of the Trustee in the nature
               of income during that Monthly Collection Period from any provider
               of a Support Facility (other than a Redraw Facility Agreement)
               under that Support Facility and which the Manager determines
               should be accounted for in respect of a Finance Charge Loss,

     but excluding interest credited to a Support Facility Collateral Account or
     any eligible credit support transferred to the Trustee under the Currency
     Swap.

     Available Income, for any Quarterly Collection Period, means the total of
     the above amounts for the three Monthly Collection Periods that comprise
     that Quarterly Collection Period.

     BANK means:

     (a)  for the purposes of paragraph (a) of the definition of BUSINESS DAY, a
          corporation authorised under the Banking Act 1959 (Cth) to carry on
          general banking business in Australia or a corporation formed or
          incorporated under an Act of the Parliament of an Australian
          jurisdiction to carry on the general business of banking; and

     (b)  for the purposes of the definition of US$ ACCOUNT, a banking
          institution or trust company organised or doing business under the
          laws of the United States of America or any of its states; and

     (c)  in any other case, a corporation authorised under the Banking Act 1959
          (Cth) to carry on general banking business in Australia or a
          corporation formed or incorporated under an Act of the Parliament of
          an Australian jurisdiction to carry on the general business of
          banking.

     BASIS SWAP means, in relation to the master interest rate swap agreement
     dated on or about the date of this Supplementary Terms Notice made between
     the Trustee, Crusade Management Limited as principal floating rate payer
     and St. George as standby basis swap provider, on the terms of the ISDA
     Master Agreement (with amendments thereto), each Transaction (as defined in
     that agreement) entered into in accordance with that agreement in relation
     to the interest rate risk arising from a Floating Rate Loan.

     BBSW REFERENCE BANK means any financial institution authorised to quote on
     the Reuters Screen BBSW Page.

     BENEFICIARY means, in relation to the Trust, each holder of a Unit (as
     defined in clause 11).

     BOND FACTOR means a Class A Bond Factor, a Class B Bond Factor or a Class C
     Bond Factor.

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     BOOK ENTRY NOTE means a book-entry note issued or to be issued by the
     Trustee in registered form under clause 3.1 of the Note Trust Deed
     representing Class A-1 Notes substantially in the form of Schedule 1 to the
     Note Trust Deed.

     BREAK PAYMENT means any amount owed by an Obligor under a Fixed Rate Loan
     and which amount is owed following payment by that Obligor of any principal
     before the due date for that principal, in accordance with the terms of the
     relevant Receivable Agreement (and includes an amount owed by the Mortgage
     Insurer with respect to the obligation of an Obligor to pay any such
     amount).

     BUSINESS DAY means any day, other than a Saturday, Sunday or public
     holiday, on which Banks are open for business in London, New York and
     Sydney.

     CALCULATION AGENT means The Bank of New York or any successor as
     Calculation Agent under the Agency Agreement.

     CALL DATE means the first Quarterly Payment Date falling immediately after
     the Quarterly Payment Date on which the aggregate Stated Amount of all
     Notes is less than or equal to 10% of the aggregate Initial Invested Amount
     of all Notes.

     CARRYOVER CHARGE OFF means, in relation to the Trust at any time, a
     Carryover Class A Charge Off, or a Carryover Class B Charge Off, a
     Carryover Class C Charge Off or a Carryover Redraw Charge Off.

     CARRYOVER CLASS A CHARGE OFF means, on any Quarterly Determination Date, in
     relation to a Class A Note, the aggregate of Class A Charge Offs in
     relation to that Class A Note prior to that Quarterly Determination Date
     and which have not been reinstated under clause 5.2(a)(iv)(A) or
     5.2(a)(iv)(B).

     CARRYOVER CLASS B CHARGE OFF means, on any Quarterly Determination Date, in
     relation to a Class B Note, the aggregate of Class B Charge Offs in
     relation to that Class B Note prior to that Quarterly Determination Date
     and which have not been reinstated under clause 5.2(a)(v).

     CARRYOVER CLASS C CHARGE OFF means, on any Quarterly Determination Date, in
     relation to a Class C Note, the aggregate of Class C Charge Offs in
     relation to that Class C Note prior to that Quarterly Determination Date
     and which have not been reinstated under clause 5.2(a)(vi).

     CARRYOVER REDRAW CHARGE OFF means, on any Quarterly Determination Date, the
     aggregate of Redraw Charge Offs prior to that Quarterly Determination Date
     and which have not been reinstated under clause 5.2(a)(iv)(D).

     CLASS where used in relation to the Notes, means each class constituted by
     the Class A-1 Notes, the Class A-2 Notes, the Class B Notes and the Class C
     Notes and where used in relation to Noteholders means the holders of Notes
     in the relevant Class or Classes of Notes.

     CLASS A BOND FACTOR means, in relation to a Quarterly Determination Date
     the ratio, expressed as a percentage (rounded to six decimal places) equal
     to the aggregate of the A$ Equivalent of the Invested Amounts for Class A
     Notes for that Quarterly Determination Date, less the A$ Equivalent of all
     Class A Principal Payments to be made on the next Quarterly Payment Date
     divided by the aggregate A$ Equivalent of the Initial Invested Amounts for
     the Class A Notes.

     CLASS A CHARGE OFF means, in relation to a Class A Note, the amount of any
     reduction in the Class A Stated Amount for that Class A Note under clause
     5.14(c)(i).

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Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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     CLASS A INITIAL INVESTED AMOUNT means, in relation to any Class A Note, the
     Initial Invested Amount of that Class A Note.

     CLASS A INTEREST means in relation to a Class A Note, all interest accrued
     on that Class A Note in respect of an Interest Period in accordance with
     clause 4.8.

     CLASS A NOTE means a Class A-1 Note or a Class A-2 Note.

     CLASS A NOTEHOLDER means a Noteholder of a Class A Note.

     CLASS A PRINCIPAL DISTRIBUTION AMOUNT means, on any Payment Date on and
     after the Stepdown Date, for so long as no Trigger Event exists, an amount
     equal to the lesser of:

     (a)  the Principal Collections remaining for distribution on that Payment
          Date after payment of the Initial Principal Distribution; and

     (b)  the greater of:

          (i)  the A$ Equivalent of the aggregate Invested Amount of the Class A
               Notes at the beginning of the Collection Period ending
               immediately before that Payment Date minus the product of:

               (A)  95.5%; and

               (B)  the aggregate Unpaid Balance of the Purchased Receivables as
                    of the last day of that Collection Period; and

          (ii) zero.

     CLASS A PRINCIPAL PAYMENT means each payment to the Class A Noteholders
     under clause 5.16 following a payment under clauses 5.5(a)(iii) or
     5.6(a)(iii).

     CLASS A STATED AMOUNT means, on a Quarterly Determination Date and in
     relation to a Class A Note, an amount equal to:

     (a)  the Class A Initial Invested Amount for that Note; less

     (b)  the aggregate of all Class A Principal Payments made before that
          Determination Date with respect to that Class A Note; less

     (c)  Carryover Class A Charge Offs (if any) made in relation to that Class
          A Note; less

     (d)  Class A Principal Payments (if any) to be made in relation to that
          Class A Note on the next Payment Date; less

     (e)  Class A Charge Offs (if any) to be made in relation to that Class A
          Note on the next Payment Date; plus

     (f)  the amount (if any) of the Excess Available Income applied in
          reinstating the Stated Amount of that Class A Note under clause
          5.2(a)(iv) on that Determination Date.

     CLASS A-1 NOTE means each of the US$[1,000,000,000] Class A-1 Mortgaged
     Backed Pass Through Floating Rate Notes due August 2037 issued by the
     Trustee with the characteristics of a Class A-1 Note under this
     Supplementary Terms Notice and includes any relevant Book-Entry Note (or
     any part or interest in it) and any relevant Definitive Note.

     CLASS A-1 NOTEHOLDER means a Noteholder of a Class A-1 Note.

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Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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     CLASS A-1 PROPORTION means, on any date, the A$ Equivalent of the aggregate
     Invested Amount of all Class A-1 Notes at that date divided by the
     aggregate of the A$ Equivalent of the Invested Amount of all Class A-1
     Notes and the Invested Amount of all Class A-2 Notes.

     CLASS A-2 NOTE means each of the A$[600,000,000] Class A-2 Mortgaged Backed
     Pass Through Floating Rate Notes due August 2037.

     CLASS A-2 NOTEHOLDER means a Noteholder of a Class A-2 Note.

     CLASS A-2 PROPORTION means, on any date, the aggregate of the Invested
     Amount of all Class A-2 Notes at that date divided by the aggregate of the
     A$ Equivalent of the Invested Amounts of all Class A-1 Notes and the
     Invested Amounts of all Class A-2 Notes.

     CLASS B BOND FACTOR means, in relation to a Quarterly Determination Date,
     the ratio, expressed as a percentage (rounded to six decimal places) equal
     to the aggregate of the Invested Amounts for all Class B Notes for that
     Quarterly Determination Date less all Class B Principal Payments to be made
     on the next Quarterly Payment Date, divided by the aggregate Class B
     Initial Invested Amounts for the Class B Notes.

     CLASS B CHARGE OFF means, in relation to a Class B Note, the amount of any
     reduction in the Class B Stated Amount for that Note under clause 5.14(b).

     CLASS B INITIAL INVESTED AMOUNT means, in relation to any Class B Note, the
     Initial Invested Amount of that Class B Note.

     CLASS B INTEREST means all interest accrued on the Class B Notes in respect
     of an Interest Period in accordance with clause 4.8.

     CLASS B NOTE means each of the A$[25,500,000] Class B Mortgaged Backed Pass
     Through Floating Rate Notes due August 2037.

     CLASS B NOTEHOLDER means a Noteholder of a Class B Note.

     CLASS B PRINCIPAL DISTRIBUTION AMOUNT means, on any Payment Date on and
     after the Stepdown Date, for so long as no Trigger Event exists, an amount
     equal to the lesser of:

     (a)  the Principal Collections remaining for distribution on that Payment
          Date after payment of the Initial Principal Distributions and the
          Class A Principal Distribution Amount; and

     (b)  the greater of:

          (i)  the A$ Equivalent of the aggregate Invested Amount of the Class A
               Notes (after taking into account the payment of the Class A
               Principal Distribution Amount on that Payment Date) plus the
               aggregate Invested Amount of the Class B Notes at the beginning
               of the Collection Period ending immediately before that Payment
               Date minus the product of:

               (A)  99.0%; and

               (B)  the aggregate Unpaid Balance of the Purchased Receivables as
                    of the last day of that Collection Period; and

          (ii) zero.

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     CLASS B PRINCIPAL PAYMENT means each payment to the Class B Noteholders
     under clauses 5.5(a)(iv) or 5.6(a)(iv).

     CLASS B STATED AMOUNT means, on a Quarterly Determination Date and in
     relation to a Class B Note, an amount equal to:

     (a)  the Class B Initial Invested Amount for that Note; less

     (b)  the aggregate of all Class B Principal Payments made before that
          Determination Date with respect to that Class B Note; less

     (c)  Carryover Class B Charge Offs (if any) made in relation to that Class
          B Note; less

     (d)  Class B Principal Payments (if any) to be made in relation to that
          Class B Note on the next Payment Date; less

     (e)  Class B Charge Offs (if any) to be made in relation to that Class B
          Note on the next Payment Date; plus

     (f)  the amount (if any) of the Excess Available Income applied in
          reinstating the Stated Amount of that Class B Note under clause
          5.2(a)(v) on that Determination Date.

     CLASS C BOND FACTOR means in relation to a Quarterly Determination Date,
     the ratio, expressed as a percentage (rounded to six decimal places) equal
     to the aggregate of the Invested Amounts for all Class C Notes for that
     Quarterly Determination Date less all Class C Principal Payments to be made
     on the next Quarterly Payment Date divided by the aggregate Class C Initial
     Invested Amounts for the Class C Notes.

     CLASS C CHARGE OFF means, in relation to a Class C Note, the amount of any
     reduction in the Class C Stated Amount for that Note under clause 5.14(a).

     CLASS C INITIAL INVESTED AMOUNT means, in relation to any Class C Note, the
     Initial Invested Amount of that Class C Note.

     CLASS C INTEREST means in relation to a Class C Note all interest accrued
     on that Class C Note in respect of an Interest Period in accordance with
     clause 4.8.

     CLASS C NOTE means each of the A$[9,800,000] Class C Mortgaged Backed Pass
     Through Floating Rate Notes due August 2037.

     CLASS C NOTEHOLDER means a Noteholder of a Class C Note.

     CLASS C PRINCIPAL DISTRIBUTION AMOUNT means, on any Payment Date on and
     after the Stepdown Date, for so long as no Trigger Event exists, an amount
     equal to the lesser of:

     (a)  the Principal Collections remaining for distribution on that Payment
          Date after payment of the Initial Principal Distributions, the Class A
          Principal Distribution Amount and the Class B Principal Distribution
          Amount; and

     (b)  the greater of:

          (i)  the A$ Equivalent of the aggregate Invested Amount of the Class A
               Notes (after taking into account the payment of the Class A
               Principal Distribution Amount on that Payment Date) plus the
               aggregate Invested Amount of the Class B Notes (after taking into
               account the payment of the Class B Principal Distribution Amount
               on

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               that Payment Date) plus the aggregate Invested Amount of the
               Class C Notes at the beginning of the Collection Period ending
               immediately before that Payment Date minus the product of:

               (A)  100.00%; and

               (B)  the aggregate Unpaid Balance of the Purchased Receivables as
                    of the last day of that Collection Period; and

          (ii) zero.

     CLASS C PRINCIPAL PAYMENT means each payment to the Class C Noteholders
     under clause 5.5(a)(v) or 5.6(a)(v).

     CLASS C STATED AMOUNT means, on a Quarterly Determination Date and in
     relation to a Class C Note, an amount equal to:

     (a)  the Class C Initial Invested Amount for that Note; less

     (b)  the aggregate of all Class C Principal Payments made before that
          Determination Date with respect to that Class C Note; less

     (c)  Carryover Class C Charge Offs (if any) made in relation to that Class
          C Note; less

     (d)  Class C Principal Payments (if any) to be made in relation to that
          Class C Note on the next Payment Date; less

     (e)  Class C Charge Offs (if any) to be made in relation to that Class C
          Note on the next Payment Date; plus

     (f)  the amount (if any) of the Excess Available Income applied in
          reinstating the Stated Amount of that Class C Note under clause
          5.2(a)(vi) on that Determination Date.

     CLEARING AGENCY means in relation to the Class A-1 Notes, an organisation
     registered as a CLEARING AGENCY pursuant to Section 17A of the Exchange Act
     appointed by the Manager and the Trustee to hold Class A-1 Notes (directly
     or through a Common Depository), and initially means DTC.

     CLOSING DATE means, in relation to the Trust, [15] September 2005 or such
     later date as may be agreed between the Trustee and the Note Managers.

     COLLECTION ACCOUNT means, in relation to the Trust, the Australian dollar
     account number [*] held at [Australia and New Zealand Banking Group Limited
     (ABN 11 005 357 522) at its office at 68 Pitt Street, Sydney NSW 2000] or
     any other account opened under clause 21 of the Master Trust Deed and
     maintained by the Trustee with an Approved Bank.

     COLLECTION PERIOD means a Monthly Collection Period or a Quarterly
     Collection Period.

     COLLECTIONS means, in relation to the Trust for a period, Finance Charge
     Collections and Principal Collections for that period.

     COMMON DEPOSITORY means in relation to the Class A-1 Notes, Cede & Co, as
     depository for DTC, or any other common depository for DTC or any Clearing
     Agency appointed from time to time to hold any Book-Entry Note.

     CONDITIONS means the Conditions for the Class A-1 Notes in the form set out
     in schedule 3 of the Note Trust Deed.

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Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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     CONFIRMATION means, in respect of the Currency Swap, any Confirmation (as
     defined in that Currency Swap).

     CORPORATIONS ACT means the Corporations Act 2001 (Cth).

     COUPON means, in relation to a Definitive Note,

     (a)  any bearer interest coupon or any bearer principal coupon relating to
          that Definitive Note;

     (b)  any replacement coupon issued under the relevant Condition; or

     (c)  where the context requires, a talon relating to that Definitive Note.

     COUPONHOLDER means the holder of any Coupon relating to the Notes.

     CURRENCY SWAP means:

     (a)  in relation to the master interest rate and currency exchange
          agreement dated on or about the date of this Supplementary Terms
          Notice between the Trustee and the Currency Swap Provider on the terms
          of the ISDA Master Agreement (with amendments thereto), each
          Transaction (as defined in that agreement) entered into in accordance
          with that agreement under which the principal swap provider, agrees to
          pay certain amounts in A$ or US$ to the Trustee in exchange for
          certain amounts in US$ or A$ (as the case maybe) in relation to the
          Class A-1 Notes; or

     (b)  any other Hedge Agreement on similar terms which, if entered into,
          will not result in the downgrading of, or withdrawal of the ratings
          for, any Class A-1 Notes.

     CURRENCY SWAP PROVIDER means Barclays Bank PLC.

     CUSTODIAN AGREEMENT means the agreement so entitled dated 19 March 1998
     between the Trustee, the Manager and the Custodian.

     CUSTODIAN FEE means the fee payable under clause 6.1(d) of this
     Supplementary Terms Notice and clause 6.1 of the Custodian Agreement.

     CUT-OFF DATE means, in respect of each Receivable and Receivable Security,
     close of business, [18 August] 2005.

     DEALER means Barclays Bank PLC, St. George or (in relation to the Class A-2
     Notes only) J.P. Morgan Australia Limited.

     DEFINITIVE NOTE means a registered note in definitive form issued or to be
     issued in respect of any Class A-1 Note under, and in the circumstances
     specified in the Note Trust Deed, and includes any replacement for a
     Definitive Note issued under the relevant Conditions.

     DESIGNATED RATING AGENCY means S&P, Moody's or Fitch Ratings.

     DETERMINATION DATE means a Monthly Determination Date or a Quarterly
     Determination Date.

     DTC means The Depository Trust Company.

     ELIGIBILITY CRITERIA means the criteria set out in schedule 1 to this
     Supplementary Terms Notice, subject to the Trustee and Manager receiving
     confirmation from the Designated Rating Agencies that the criteria will not
     adversely affect the Rating of any Note.

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Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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     ENFORCEMENT EXPENSES means the costs and expenses incurred by the Approved
     Seller or the Servicer in connection with the enforcement of any Purchased
     Receivables or the related Receivable Rights referred to in clause 6.2(a)
     of the Servicing Agreement.

     EVENT OF DEFAULT has the meaning given in the Security Trust Deed.

     EXCESS AVAILABLE INCOME means, for a Quarterly Collection Period, the
     amount (if any) by which the Total Available Funds for the Quarterly
     Collection Period exceeds the Total Payments for the Quarterly Collection
     Period.

     EXCESS DISTRIBUTION means, in relation to a Quarterly Collection Period,
     the amount (if any) by which the Excess Available Income for that Quarterly
     Collection Period exceeds the amounts applied under clause 5.2 on each
     Determination Date relating to that Quarterly Collection Period.

     EXCHANGE ACT means the United States Securities Exchange Act of 1934, as
     amended.

     FINAL MATURITY DATE means the date specified in clause 4.2(i).

     FINANCE CHARGE COLLECTIONS means, for a Monthly Collection Period, the
     aggregate of:

     (a)  the aggregate of all amounts received by or on behalf of the Trustee
          during that Monthly Collection Period in respect of interest, fees and
          other amounts in the nature of income payable under or in respect of
          the Purchased Receivables and the related Receivable Rights, to the
          extent not included within any other paragraph of this definition,
          including:

          (i)  any Liquidation Proceeds on account of interest received during
               that Monthly Collection Period;

          (ii) any payments by the Approved Seller to the Trustee on the
               repurchase of a Purchased Receivable under the Master Trust Deed
               during that Monthly Collection Period which are attributable to
               interest;

          (iii) any Break Payments received during that Monthly Collection
               Period;

          (iv) any amount received by the Trustee from the Approved Seller under
               clause 5.25 with respect to that Monthly Collection Period
               attributable to interest; and

          (v)  any interest on Collections paid by the Approved Seller under
               clause 5.2(b)(ii) of the Servicing Agreement (as amended by this
               Supplementary Terms Notice) and received by the Trustee during
               that Monthly Collection Period.

     (b)  all amounts in respect of interest, fees and other amounts in the
          nature of income, received by or on behalf of the Trustee during that
          Monthly Collection Period including:

          (i)  from the Approved Seller, in respect of any breach of a
               representation, warranty or undertaking contained in the Master
               Trust Deed or this Supplementary Terms Notice;

          (ii) from the Approved Seller under any obligation under the Master
               Trust Deed or this Supplementary Terms Notice to indemnify or
               reimburse the Trustee for any amount;

          (iii) from the Servicer in respect of any breach of a representation,
               warranty or undertaking contained in the Servicing Agreement;

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Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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          (iv) from the Servicer under any obligation under the Servicing
               Agreement to indemnify or reimburse the Trustee for any amount;

          (v)  from the Custodian in respect of any breach of a representation,
               warranty or undertaking contained in the Custodian Agreement;

          (vi) from the Custodian under any obligation under the Custodian
               Agreement to indemnify or reimburse the Trustee for any amount;

          (vii) from the Indemnifier under the Indemnity in respect of any
               losses arising from a breach by the Custodian of its obligations
               under the Custodian Agreement;

          (viii) from Perpetual Trustees Consolidated Limited in its personal
               capacity in respect of any breach of a representation, warranty
               or undertaking by the Trustee in respect of which it is not
               entitled to be indemnified out of the Assets of the Trust, or any
               indemnity from Perpetual Trustees Consolidated Limited in its
               personal capacity contained in the Transaction Documents;

          (ix) from the Approved Seller, the Servicer, the Indemnifier, the
               Manager or the Custodian, in respect of any breach of a
               representation, warranty or undertaking by it in respect of a
               breach under any Transaction Document or under any indemnity
               contained in the Transaction Documents; and

          (x)  from the Manager in respect of any breach of a representation,
               warranty or undertaking of the Manager in respect of a breach of
               which it is not entitled to be indemnified out of the Assets of
               the Trust, or any indemnity from the Manager, contained in the
               Transaction Documents,

          in each case which are determined by the Manager to be in respect of
          interest, fees and other amounts in the nature of income payable under
          the Purchased Receivables and the related Receivable Rights; and

     (c)  Recoveries in the nature of income received by or on behalf of the
          Trustee during that Monthly Collection Period;

     less:

     (d)  the Government Charges collected by or on behalf of the Trustee for
          that Monthly Collection Period; and

     (e)  the aggregate of all bank fees and charges due to the Servicer or the
          Approved Seller as agreed by them and consented to by the Trustee
          (that consent not to be unreasonably withheld) from time to time and
          collected by the Approved Seller or the Servicer during that Monthly
          Collection Period.

     For a Quarterly Collection Period, FINANCE CHARGE COLLECTIONS means the
     aggregate of those amounts relating to the three Monthly Collection Periods
     that comprise that Quarterly Collection Period.

     FINANCE CHARGE LOSS means, for a Quarterly Collection Period, the amount of
     any Liquidation Loss referred to in clause 5.10(a).

     FIXED RATE LOAN means, at any time, any Purchased Receivable which bears a
     fixed rate of interest at that time.

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Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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     FLOATING RATE LOAN means, at any time, any Purchased Receivable which bears
     a variable rate of interest, as permitted by the relevant Receivable
     Agreement, at the discretion of the Approved Seller.

     FURTHER ADVANCE means in relation to any Collection Period, an amount
     provided to an Obligor by the Approved Seller under a Purchased Receivable
     in that Collection Period which increases the principal amount of that
     Purchased Receivable and which is not a Redraw (notwithstanding that the
     scheduled principal balance is required to be increased by reason of the
     provision of that amount).

     GOVERNMENT CHARGES means, for any Collection Period, the aggregate of all
     amounts collected by the Servicer or the Approved Seller in that Collection
     Period in respect of the Purchased Receivables and the related Receivable
     Rights representing bank account taxes or similar Taxes.

     GST means any goods and services tax, broad based consumption tax or value
     added tax imposed by any government agency and includes any goods and
     services tax payable under the A New Tax System (Goods and Services Tax)
     Act 1999 (Cth).

     HEDGE AGREEMENT in relation to the Trust includes any Interest Hedge and
     the Currency Swap.

     HOUSING LOAN PRINCIPAL means, in relation to a Purchased Receivable, the
     principal amount of that Purchased Receivable from time to time.

     INCOME DISTRIBUTION DATE means, for the purposes of the Master Trust Deed,
     each Payment Date.

     INDEMNIFIER means St. George.

     INDEMNITY means the deed of indemnity between the Trustee, the Indemnifier,
     the Custodian and the Manager dated 14 March 1998.

     INFORMATION MEMORANDUM means the information memorandum relating to the
     Trust and the A$ Notes dated on or about the date of this Supplementary
     Terms Notice (attaching the Prospectus).

     INITIAL INVESTED AMOUNT means:

     (a)  in respect of a Note, the amount stated as the Initial Invested Amount
          for that Note in clause 4.2(e);

     (b)  in respect of all Notes of a Class:

          (i)  the aggregate of the Initial Invested Amounts of all Notes of
               that Class (in the case of the A$ Notes); or

          (ii) the aggregate of the A$ Equivalent of the Initial Invested
               Amounts of all Notes of that Class (in the case of the Class A-1
               Notes); and

     (c)  in respect of all Notes, the sum of the aggregate of the Initial
          Invested Amount of all A$ Notes and the aggregate of the relevant A$
          Equivalent of the Initial Invested Amounts of all Class A-1 Notes.

     INITIAL PRINCIPAL DISTRIBUTION means any distribution of Principal
     Collections in accordance with clause 5.4(c).

     INTEREST means Class A Interest, Class B Interest or Class C Interest.

     INTEREST HEDGE means the Basis Swap or an Interest Rate Swap.

     INTEREST PAYMENT DATE means, for the purposes of the Master Trust Deed,
     each Quarterly Payment Date.

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Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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     INTEREST PERIOD means:

     (a)  in relation to the first Interest Period of a Note, the period
          commencing on (and including) the Closing Date and ending on (but
          excluding) the first Quarterly Payment Date; and

     (b)  in relation to the final Interest Period, the period commencing on
          (and including) the Quarterly Payment Date prior to the day on which
          all amounts due on such Notes are redeemed in full in accordance with
          the Transaction Documents and ending on (but excluding) such day;
          provided that if the Stated Amount of any Note on the due date for
          redemption is not zero and payment of principal due is improperly
          withheld or refused, the final Interest Period shall end on the day on
          which:

          (i)  the monies in respect of that Note have been received by the Note
               Trustee or the Principal Paying Agent and notice to that effect
               has been given in accordance with the relevant Condition; or

          (ii) the Stated Amount of that Note has been reduced to zero provided
               that Interest shall thereafter begin to accrue from (and
               including) any date on which the Stated Amount of that Note
               becomes greater than zero; and

     (c)  in relation to each other Interest Period, each period commencing on
          (and including) a Quarterly Payment Date and ending on (but excluding)
          the next Quarterly Payment Date.

     INTEREST RATE means, in relation to:

     (a)  a Class A-1 Note and an Interest Period, LIBOR in relation to that
          Interest Period plus the relevant Margin for the Class A-1 Notes; and

     (b)  an A$ Note and an Interest Period, the Three Month Bank Bill Rate on
          the first day of that Interest Period plus the relevant Margin for the
          relevant A$ Note.

     INTEREST RATE SWAP means, in relation to the master agreement dated on or
     about the date of this Supplementary Terms Notice made between the Trustee
     and Crusade Management Limited as principal floating rate payer and
     St. George as standby interest rate swap provider, on the terms of the ISDA
     Master Agreement (with amendments thereto), each Transaction (as defined in
     that agreement) entered into in accordance with that agreement in relation
     to the interest rate risk arising from a Receivable which is a Fixed Rate
     Loan.

     INVESTED AMOUNT means, on a Determination Date in relation to:

     (a)  a Note, the Initial Invested Amount of that Note minus the aggregate
          of Principal Payments made in respect of the Note on or before that
          Determination Date; and

     (b)  all Notes of a Class:

          (i)  the aggregate of the Invested Amounts of all Notes of that Class
               (in the case of the A$ Notes); or

          (ii) the aggregate of the A$ Equivalent of the Invested Amounts of all
               Notes of that Class (in the case of the Class A-1 Notes).

     ISDA means the International Swaps and Derivatives Association, Inc.
     (formerly the International Swaps Dealers Association Inc).

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                                                                         Page 14

Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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     ISDA DEFINITIONS means the 2000 ISDA Definitions as amended from time to
     time published by the International Swaps and Derivatives Association, Inc.

     ISDA MASTER AGREEMENT means the June 1992 Multicurrency-Cross border
     edition of the Master Agreement published by ISDA, any schedule forming
     part of that Agreement and the relevant addenda to it.

     LIBOR means, in relation to any Interest Period, the rate of interest
     determined by the Calculation Agent as follows:

     (a)  On the second LIBOR Business Day before the beginning of each Interest
          Period (each an INTEREST DETERMINATION DATE), the rate "USD-LIBOR-BBA"
          as the applicable Floating Rate Option under the ISDA Definitions
          being the rate applicable to any Interest Period for three-month (or
          in the case of the first Interest Period, the rate will be determined
          by linear interpolation of 1 month and 2 months) deposits in US
          Dollars which appears on the Telerate Page 3750 as of 11.00 am, London
          time, determined on the Interest Determination Date by the Calculation
          Agent.

     (b)  If such rate does not appear on the Telerate Page 3750, the rate for
          that Interest Period will be determined as if the Trustee and the
          Calculation Agent had specified "USD-LIBOR-Reference Banks" as the
          applicable Floating Rate Option under the ISDA Definitions.
          "USD-LIBOR-Reference Banks" means that the rate for an Interest Period
          will be determined on the basis of the rates at which deposits in US
          Dollars are offered by the REFERENCE BANKS (being four major banks in
          the London interbank market agreed to by the Calculation Agent and the
          Currency Swap Provider) at approximately 11.00 am, London time, on the
          Interest Determination Date to prime banks in the London interbank
          market for a period of three months (or in the case of the first
          Interest Period, the rate will be determined by linear interpolation
          of 1 month and 2 months) commencing on the first day of the Interest
          Period and in a Representative Amount (as defined in the ISDA
          Definitions). The Calculation Agent will request the principal London
          office of each of the Reference Banks to provide a quotation of its
          rate. If at least two such quotations are provided, the rate for that
          Interest Period will be the arithmetic mean of the quotations. If
          fewer than two quotations are provided as requested, the rate for that
          Interest Period will be the arithmetic mean of the rates quoted by not
          less than two major banks in London, selected by the Calculation Agent
          and the Currency Swap Provider, at approximately 11.00am, London time,
          on the first day of that Interest Period for loans in US Dollars to
          leading European banks for a period of three months (or in the case of
          the first Interest Period, the rate will be determined by linear
          interpolation of 1 month and 2 months) commencing on the first day of
          the Interest Period and in a Representative Amount.

     (c)  If no such rates are available in London, then the rate for such
          Interest Period shall be the most recently determined rate in
          accordance with this paragraph.

     In this definition of LIBOR, LIBOR BUSINESS DAY means any day on which
     commercial banks are open for business (including dealings in foreign
     exchange and foreign currency deposits) in London.

     LIQUIDATION LOSS means, for a Collection Period, the amount (if any) by
     which the Unpaid Balance of a Purchased Receivable (together with the
     Enforcement Expenses relating to the Purchased

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Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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     Receivable and the related Receivable Rights) exceeds the Liquidation
     Proceeds in relation to the Purchased Receivable for that Collection
     Period.

     LIQUIDATION PROCEEDS means, in relation to a Purchased Receivable and the
     related Receivable Rights which have been or are being enforced, all
     amounts recovered from the enforcement of the Purchased Receivable and the
     related Receivable Rights (but does not include the proceeds of any
     Mortgage Insurance Policy).

     LIQUIDITY ACCOUNT means a ledger in the Collection Account established
     under clause 5.10(a).

     LIQUIDITY DRAW has the meaning given in clause 5.10(b).

     LIQUIDITY LIMIT means, at any time, the amount equal to 0.8% of the
     aggregate outstanding principal amount of the Purchased Receivables at that
     time.

     LIQUIDITY RESERVE means, at any time, the amount standing to the credit of
     the Liquidity Account at that time.

     LIQUIDITY SHORTFALL has the meaning given in clause 5.10(b).

     LOAN OFFSET DEPOSIT ACCOUNT means any deposit account maintained by an
     Obligor under a Purchased Receivable with the Approved Seller where an
     amount equal to the interest which would otherwise accrue on that account
     is offset against moneys owed by that Obligor under that Purchased
     Receivable, in accordance with the relevant Receivable Agreement.

     LOAN OFFSET INTEREST AMOUNT means, in relation to any Obligor under a
     Purchased Receivable, the amount of any interest which would be payable by
     the Approved Seller to that Obligor on amounts standing to the credit of
     the Obligor's Loan Offset Deposit Account, if interest was payable on that
     account.

     LVR means in relation to a Loan, the outstanding amount of that Loan, plus
     any other amount secured by any Mortgage for that Loan or related Loans, at
     the date of determination divided by the aggregate value (determined at the
     time the Mortgage was granted) of the Mortgaged Property subject to the
     related Mortgage for that Loan, expressed as a percentage.

     MARGIN means in relation to a Note, the Margin agreed between the Manager
     and the relevant Note Managers, and notified by the Manager to the Trustee
     under clause 4.2(d), as may be modified under clause 4.9.

     MODIFIED FOLLOWING BUSINESS DAY CONVENTION has the meaning given to it in
     the ISDA Definitions.

     MONTHLY COLLECTION PERIOD means, in relation to a Monthly Payment Date, the
     calendar month which precedes the calendar month in which the Monthly
     Payment Date occurs. The first Monthly Collection Period is the period from
     (but excluding) the Cut-Off Date to (and including) 30 September 2005. The
     last Monthly Collection Period is the period from (but excluding) the last
     day of the calendar month that precedes the date on which the Trust is
     terminated under clause 3.5 of the Master Trust Deed to (and including)
     that date.

     MONTHLY DETERMINATION DATE means, in relation to the Trust for a Monthly
     Collection Period, the date which is 2 Business Days prior to the Monthly
     Payment Date following the end of that Monthly Collection Period.

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Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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     MONTHLY PAYMENT DATE means, in relation to a Monthly Collection Period, the
     14th day of the calendar month that follows that Monthly Collection Period,
     subject to adjustment in accordance with the Modified Following Business
     Day Convention.

     MORTGAGE INSURER means St. George Insurance Pte Ltd and GE Mortgage
     Insurance Company Pty Ltd, PMI Mortgage Insurance Ltd and the Commonwealth
     of Australia.

     MORTGAGE SHORTFALL means, in relation to a Purchased Receivable, the amount
     (if a positive number) equal to the Principal Loss for that Purchased
     Receivable minus the aggregate of:

     (a)  the total amount recovered and recoverable in respect of that
          Purchased Receivable under the relevant Mortgage Insurance Policy,
          determined to be attributable to principal; and

     (b)  the total amount recovered and recoverable by the Trustee from the
          Approved Seller or the Servicer (as the case may be) in respect of
          that Purchased Receivable (by way of damages or otherwise) under or in
          respect of the Master Trust Deed, this Supplementary Terms Notice or
          the Servicing Agreement (as the case may be), determined by the
          Manager to be attributable to principal.

     For the purposes of this definition,

     (c)  an amount shall be regarded as not recoverable upon the earlier of:

          (i)  a determination being made, in the case of paragraph (a), by the
               Manager, and in the case of paragraph (b), by the Trustee, in
               each case upon the advice of such suitably qualified expert
               advisers as the Manager or the Trustee (as the case may be)
               thinks fit, that there is no such amount, or that such amount is
               not likely to be recovered (including because the relevant
               Mortgage Insurance Policy has been terminated, the relevant
               Mortgage Insurer is entitled to reduce the amount of the claim or
               the Mortgage Insurer defaults in payment of a claim); and

          (ii) the date which is two years after the Determination Date upon
               which the relevant Principal Loss was determined under clause
               5.10; and

     (d)  a Mortgage Shortfall arises on the date upon which there are no
          further amounts referred to in (a) and (b) recoverable in respect of
          the relevant Purchased Receivable.

     MORTGAGED PROPERTY has the meaning given in the Security Trust Deed.

     MORTGAGEE means:

     (a)  the Security Trustee in relation to its rights (held in its own right
          or for the benefit of other Mortgagees) under this deed and the
          Security Trust Deed;

     (b)  any Class A Noteholder, in relation to its rights under the Class A
          Notes held by it;

     (c)  any Class B Noteholder in relation to its rights under the Class B
          Notes held by it;

     (d)  any Class C Noteholder in relation to its rights under the Class C
          Notes held by it;

     (e)  any Approved Seller in relation to any relevant Accrued Interest
          Adjustment and Redraws;

     (f)  the Manager in relation to its rights as Manager under the Transaction
          Documents;

     (g)  the Servicer in relation to its rights as Servicer under the
          Transaction Documents;

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                                                                         Page 17

Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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     (h)  any Support Facility Provider in relation to its rights under each
          Support Facility (other than a Mortgage Insurance Policy) to which it
          is a party (including the Swap Provider and the Currency Swap
          Provider);

     (i)  the Note Trustee in relation to its rights (held on its own right or
          for the benefit of any Class A Noteholders) under the Transaction
          Documents;

     (j)  each Paying Agent in relation to its rights under the Transaction
          Documents;

     (k)  each Note Manager in relation to its rights under the Transaction
          Documents;

     (l)  the Note Registrar in relation to its rights under the Transaction
          Documents; or

     (m)  the Calculation Agent in relation to its rights under the Transaction
          Documents.

     NOTE means a Class A Note, a Class B Note or Class C Note, and includes:

     (a)  the Conditions; and

     (b)  any interest in a Book-Entry Note as an account holder with a Clearing
          Agency.

     NOTE APPLICATION means a note application for one or more A$ Notes dated on
     or about the Closing Date.

     NOTE MANAGER means in relation to any Class A-1 Notes Barclays Capital Inc
     or J.P. Morgan Securities Inc.

     NOTE REGISTER means the register kept by the Note Registrar to provide for
     the registration and transfer of Class A-1 Notes under the Note Trust Deed.

     NOTE REGISTRAR means The Bank of New York or any successor note registrar
     approved in writing by the Note Trustee and appointed under the Agency
     Agreement.

     NOTE TRUST means the trust established under clause 1.11 of the Note Trust
     Deed.

     NOTE TRUST DEED means the deed so entitled dated on or about the date of
     this Supplementary Terms Notice between the Note Trustee, the Principal
     Paying Agent, the Calculation Agent, the Trustee, the Security Trustee and
     the Manager.

     NOTEHOLDER means, in relation to a Note at any time, the person who is the
     registered holder of that Note at that time.

     NOTEHOLDER MORTGAGEES means, together:

     (a)  the Note Trustee on behalf of the Class A-1 Noteholders save that
          where the Note Trustee has become bound to take steps and/or proceed
          hereunder and fails to do so within a reasonable time and such failure
          is continuing, the Class A-1 Noteholders and then only if and to the
          extent permitted under the Transaction Documents and Australian law;
          and

     (b)  each A$ Noteholder.

     NOTICE OF CREATION OF TRUST means the Notice of Creation of Trust dated [5]
     September 2005 issued under the Master Trust Deed in relation to the Trust.

     PAYING AGENT means any person for the time being appointed as a Paying
     Agent under the Agency Agreement and includes the Principal Paying Agent.

     PAYMENT DATE means a Monthly Payment Date or a Quarterly Payment Date.

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                                                                         Page 18

Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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     PAYMENT SHORTFALL means, in relation to any Collection Period, the amount
     (if any) by which Total Payments for that Collection Period exceed the
     Available Income for that Collection Period.

     PREMISES means the area labelled "Crusade Global Trust No. 2 of 2005"
     located in a secure area on Lower Ground Floor, St. George House, 4-16
     Montgomery Street, Kogarah, New South Wales 2217 (or such other premises as
     the Custodian proposes, and the Trustee agrees to in writing).

     PRINCIPAL AMORTISATION DATE means, in relation to a Note for the purposes
     of the Master Trust Deed, each Quarterly Payment Date.

     PRINCIPAL CHARGE OFF means, in relation to any Quarterly Collection Period,
     the aggregate of all Mortgage Shortfalls for that Quarterly Collection
     Period and, in relation to the final Quarterly Collection Period, includes
     all Principal Draws and Liquidity Draws outstanding on the Quarterly
     Payment Date for that Quarterly Collection Period (after applying all
     amounts then available towards repaying those Principal Draws and Liquidity
     Draws).

     PRINCIPAL COLLECTIONS means, for a Collection Period, the aggregate of:

     (a)  all amounts received by or on behalf of the Trustee from or on behalf
          of Obligors under the Purchased Receivables during that Collection
          Period in respect of principal, in accordance with the terms of the
          Purchased Receivables, including principal prepayments;

     (b)  all other amounts received by or on behalf of the Trustee under or in
          respect of principal under the Purchased Receivables and the related
          Receivable Rights during that Collection Period including:

          (i)  any Liquidation Proceeds on account of principal;

          (ii) any payments by the Approved Seller to the Trustee on the
               repurchase of a Purchased Receivable under the Master Trust Deed
               during that Monthly Collection Period which are attributable to
               principal; and

          (iii) any amount received by the Trustee from the Approved Seller
               under clause 5.22 with respect to that Monthly Collection Period
               attributable to principal;

     (c)  all amounts received by or on behalf of the Trustee during that
          Collection Period from any provider of a Support Facility (other than
          the Currency Swaps but including any Mortgage Insurance Policy) under
          that Support Facility and which the Manager determines should be
          accounted for in respect of a Principal Loss;

     (d)  all amounts received by or on behalf of the Trustee during that
          Collection Period:

          (i)  from the Approved Seller, in respect of any breach of a
               representation, warranty or undertaking of the Approved Seller
               contained in the Transaction Documents;

          (ii) from the Approved Seller under any obligation of the Approved
               Seller under the Transaction Documents to indemnify or reimburse
               the Trustee for any amount;

          (iii) from the Servicer, in respect of any breach of any
               representation, warranty or undertaking of the Servicer contained
               in the Servicing Agreement;

          (iv) from the Servicer under any obligation of the Servicer under the
               Servicing Agreement to indemnify or reimburse the Trustee for any
               amount;

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          (v)  from the Custodian in respect of any breach of a representation,
               warranty or undertaking of the Custodian contained in the
               Custodian Agreement;

          (vi) from the Custodian under any obligation of the Custodian under
               the Custodian Agreement to indemnify or reimburse the Trustee for
               any amount;

          (vii) from the Indemnifier under the Indemnity in respect of any
               losses arising from a breach by the Custodian of its obligations
               contained in the Custodian Agreement;

          (viii) from Perpetual Trustees Consolidated Limited in its personal
               capacity in respect of any breach of a representation, warranty
               or undertaking of the Trustee in respect of which it is not
               entitled to be indemnified out of the Assets of the Trust;

          (ix) from Perpetual Trustees Consolidated Limited in its personal
               capacity under any obligation of the Trustee under the
               Transaction Documents to indemnify or reimburse the Trust for any
               amount;

          (x)  from the Manager in respect of any breach of a representation,
               warranty or undertaking of the Manager contained in the
               Transaction Documents of which it is not entitled to be
               indemnified out of the Assets of the Trust; and

          (xi) from the Manager under any obligation of the Manager under the
               Transaction Documents to indemnify or reimburse the Trust for any
               amount,

          in each case, which are determined by the Manager to be in respect of
          principal payable under the Purchased Receivables and the related
          Receivable Rights;

     (e)  any amounts in the nature of principal received by or on behalf of the
          Trustee during that Collection Period pursuant to the sale of any
          Asset (including the A$ Equivalent of any amount received by the
          Trustee on the issue of the Notes which was not used to purchase a
          Purchased Receivable or Purchased Receivable Security, and which the
          Manager determines is surplus to the requirements of the Trust);

     (f)  any amount of Excess Available Income to be applied to pay or
          reinstate a Principal Charge Off or a Carryover Charge Off (as
          applicable);

     (g)  any Excess Available Income to be applied under clause 5.2 to
          Principal Draws made on a previous Payment Date,

     (h)  any Excess Available Income to be applied as more fully described in
          clause 5.2(a)(ii) to Liquidity Draws made on a previous Quarterly
          Payment Date or Monthly Payment Date;

     (i)  any Surplus Amount for that Quarterly Payment Date; and

     (j)  any amount retained in the Collection Account from the immediately
          preceding Collection Period in accordance with clause 5.4(c)(ii) or
          5.4(c)(v) and which has not been applied under clause 5.1 or to
          reimburse further Redraws or Further Advances (as the case may be),

     less any amounts paid by the Trustee to replace a Purchased Receivable in
     accordance with clause 8.

     PRINCIPAL DRAW means, for a relevant Collection Period, the amount
     calculated under clause 5.9 in relation to that relevant Collection Period.

     PRINCIPAL ENTITLEMENT means, in relation to a Note for the purposes of the
     Master Trust Deed, at any time prior to the Final Maturity Date, the
     Invested Amount of such Note at such time and, on the

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     Final Maturity Date or the date on which the Note is fully redeemed under
     the Transaction Documents, the Stated Amount of such Note at such date.

     PRINCIPAL LOSS means, for a Quarterly Collection Period, the amount of any
     Liquidation Loss for that Quarterly Collection Period referred to in clause
     5.11(b).

     PRINCIPAL PAYING AGENT means The Bank of New York or any successor as
     Principal Paying Agent under the Agency Agreement.

     PRINCIPAL PAYMENT means a Class A Principal Payment, a Class B Principal
     Payment or a Class C Principal Payment.

     PROPERTY RESTORATION EXPENSES means costs and expenses incurred by or on
     behalf of the Trustee, or by the Servicer under the Servicing Agreement, in
     repairing, maintaining or restoring to an appropriate state of repair and
     condition any Mortgaged Property, in exercise of a power conferred on the
     mortgagee under the relevant Purchased Receivable and Relevant Documents.

     PROSPECTUS means the prospectus relating to the Trust and the Class A-1
     Notes dated on or about the date of this Supplementary Terms Notice.

     PURCHASED RECEIVABLE means each Loan specified in a Sale Notice and
     purchased by the Trustee, unless the Trustee has ceased to have an interest
     in that Loan.

     PURCHASED RECEIVABLE SECURITY means each Mortgage specified in a Sale
     Notice and acquired by the Trustee, unless the Trustee has ceased to have
     an interest in that Mortgage.

     QUARTERLY COLLECTION PERIOD means in relation to a Quarterly Payment Date,
     the 3 Monthly Collection Periods that precede the calendar month in which
     the Quarterly Payment Date falls. The first Quarterly Collection Period is
     the period from (and excluding) the Cut-Off Date, to (and including) 31
     October 2005. The last Quarterly Collection Period ends on (and includes)
     the date on which the Trust is terminated under clause 3.5 of the Master
     Trust Deed.

     QUARTERLY DETERMINATION DATE means, in relation to the Trust for a
     Quarterly Collection Period, the date which is 2 Business Days prior to the
     Quarterly Payment Date following the end of that Quarterly Collection
     Period.

     QUARTERLY PAYMENT DATE has the meaning given in clause 4.2(h).

     RATING means the rating specified in clause 4.2(f).

     RECEIVABLE means, in relation to the Trust, the rights of the Approved
     Seller or the Trustee (as the case may require) under or in respect of
     Loans constituted upon acceptance of the Approved Seller's standard loan
     offer for any of its mortgage loan products (or any variation of those
     products after a Sale Notice is or was given) as varied by the Approved
     Seller's standard letter of variation if any (unless that variation would
     make that Receivable cease to comply with the Eligibility Criteria).

     RECEIVER has the meaning given in the Security Trust Deed.

     RECORD DATE means:

     (a)  with respect to a Payment Date for any A$ Note, 4.00pm (Sydney time)
          on the second Business Day before that Payment Date;

     (b)  with respect to the Payment Date for any Book-Entry Note, close of
          business on the second Business Day before that Payment Date; and

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     (c)  with respect to the Payment Date for any Definitive Note, the last day
          of the calendar month before that Payment Date.

     RECOVERY means any amount received by the Servicer under or in respect of a
     Purchased Receivable and the related Receivable Rights at any time after a
     Finance Charge Loss or Principal Loss has arisen in respect of that
     Purchased Receivable, provided that amount is not otherwise payable to a
     Mortgage Insurer under a Mortgage Insurance Policy.

     REDRAW means, in relation to any Collection Period, an amount provided to
     an Obligor by the Approved Seller under a Purchased Receivable in that
     Collection Period in respect of any principal prepayments previously made
     to the Obligor's loan account in accordance with the terms of the Obligor's
     Purchased Receivable.

     REDRAW CHARGE OFF means the amount of any reduction in the Redraw Principal
     Outstanding under the Redraw Facility Agreement under clause 5.14.

     REDRAW FACILITY AGREEMENT means, in relation to the Trust, the agreement so
     entitled dated on or about the date of this Supplementary Terms Notice
     between the Trustee, the Manager and the Redraw Facility Provider.

     REDRAW FACILITY PROVIDER means, in relation to the Trust, St. George.

     REDRAW PRINCIPAL OUTSTANDING has the meaning given in the Redraw Facility
     Agreement.

     REDRAW RETENTION AMOUNT has the meaning given in clause 5.8(c).

     REDRAW STATED AMOUNT has the meaning given in the Redraw Facility
     Agreement.

     REDRAW SHORTFALL means the total amount (if any) of Redraws and Further
     Advances made by the Approved Seller for which it has not been reimbursed
     which remain outstanding after:

     (a)  applying Principal Collections towards reimbursement of those Redraws
          and Further Advances under clause 5.4; and

     (b)  without duplication, drawing on the Redraw Retention Amount (if any).

     REMITTANCE DATE means the day which is two (2) Business Days before a
     Payment Date.

     RESIDUAL CAPITAL UNIT has the meaning given in clause 11.1.

     RESIDUAL INCOME UNIT has the meaning given in clause 11.1.

     SALE NOTICE means any Sale Notice (as defined in the Master Trust Deed)
     which may be given by the Approved Seller to the Trustee after the date of
     execution of this Supplementary Terms Notice and which is subsequently
     accepted by the Trustee.

     SECURED MONEYS has the meaning given in the Security Trust Deed.

     SECURITY TRUST DEED means the agreement so entitled dated [5] September
     2005 between the Trustee, the Manager, the Note Trustee and the Security
     Trustee.

     SECURITY TRUSTEE means the security trustee so named under the Security
     Trust Deed.

     SECURITY TRUSTEE'S FEE means the fee payable under clause 11.2 of the
     Security Trust Deed.

     SELLER LOAN AGREEMENT means the agreement so entitled dated on or about the
     date of this Supplementary Terms Notice between the Approved Seller, the
     Trustee and the Manager.

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     SERVICING AGREEMENT means the agreement so entitled dated 19 March 1998
     between the Trustee, the Manager and the Servicer.

     SERVICING FEE means the fee payable under clause 6.1(c) of this
     Supplementary Terms Notice and clause 6.1 of the Servicing Agreement.

     SPECIFIC MORTGAGE INSURANCE POLICY means a Mortgage Insurance Policy in
     relation to a Purchased Receivable with an LVR of over 80% (or over 75% in
     the case of a Purchased Receivable with an outstanding balance greater than
     A$1,000,000 which is secured by a single property).

     SPREAD in relation to the Currency Swap has the meaning given in the
     Currency Swap in respect of payments by the Trustee under that Currency
     Swap.

     STATED AMOUNT means in relation to the Class A Notes, the Class A Stated
     Amount, in relation to the Class B Notes, the Class B Stated Amount and in
     relation to the Class C Notes, the Class C Stated Amount.

     STEPDOWN DATE means the Payment Date falling in November 2008.

     STEP-UP MARGIN has the meaning given in clause 4.9.

     SUBSCRIPTION AGREEMENT means:

     (a)  the Underwriting Agreement dated on or about [13] September 2005
          between the Trustee, the Manager, St. George and the Note Managers as
          representative of the several underwriters in relation to subscription
          for the Class A-1 Notes (the UNDERWRITING AGREEMENT); and

     (b)  the Dealer Agreement dated on or about the date of this Supplementary
          Terms Notice between the Trustee, the Manager, St. George, the
          Custodian and the Dealers, in relation to subscription for the A$
          Notes.

     SUPPORT FACILITY means each Support Facility (as defined in the Master
     Trust Deed) which relates to the Trust and includes the Indemnity and the
     standby facility provided by St. George under each of the Basis Swap and
     the Interest Rate Swap.

     SUPPORT FACILITY COLLATERAL ACCOUNT means, in relation to a Support
     Facility, each Collateral Account as defined in that Support Facility.

     SURPLUS AMOUNT means, on a Quarterly Payment Date, the amount (if any) by
     which the Liquidity Reserve on that Quarterly Payment Date (after
     application of all amounts under clause 5) exceeds the Liquidity Limit at
     that time, as determined by the Manager.

     SWAP PROVIDER means, in relation to a Hedge Agreement, the counterparty
     which enters into that arrangement with the Trustee.

     TAX ACT has the meaning given to Taxation Act in the Master Trust Deed.

     THREE MONTH BANK BILL RATE on any date means the rate quoted on the Reuters
     Screen BBSW Page at approximately 10.00am, Sydney time, on that date (the
     CALCULATION DAY) for each BBSW Reference Bank so quoting (but not fewer
     than five) as being the mean buying and selling rate for a bill (which for
     the purpose of this definition means a bill of exchange of the type
     specified for the purpose of quoting on the Reuters Screen BBSW Page)
     having a tenor of 3 months (or in the case of the first Interest Period,
     the rate will be determined by linear interpolation of 1 month and 2
     months)

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     eliminating the highest and lowest mean rates and taking the average of the
     remaining mean rates and then (if necessary) rounding the resultant figure
     upwards to four decimal places. If on any Calculation Day fewer than five
     BBSW Reference Banks have quoted rates on the Reuters Screen BBSW Page, the
     rate for that date shall be calculated as above by taking the rates
     otherwise quoted by five of the BBSW Reference Banks on application by the
     parties for such a bill of the same tenor. If on any Calculation Day the
     rate cannot be determined in accordance with the foregoing procedures then
     the rate shall mean such rate as is agreed between the Manager and
     St. George having regard to comparable indices then available.

     THRESHOLD RATE means, at any time, 0.25% per annum plus the minimum rate of
     interest that must be set on all Purchased Receivables where permitted
     under the relevant Receivable Agreement which will be sufficient (assuming
     that all relevant parties comply with their obligations at all times under
     the Transaction Documents, the Purchased Receivables and the related
     Receivable Rights), when aggregated with the income produced by the rate of
     interest on all other Purchased Receivables and other Authorised
     Investments which are Assets of the Trust, to ensure that the Trustee will
     have available to it sufficient Collections to enable it to comply with its
     obligations under the Transaction Documents relating to the Trust as they
     fall due (including the repayment of any Principal Draws by the Final
     Maturity Date of all Notes).

     TITLE PERFECTION EVENT means, in relation to the Trust, the events set out
     in clause 10.

     TOTAL AVAILABLE FUNDS means, for a Collection Period, the aggregate of:

     (a)  the Available Income for that Collection Period;

     (b)  any Principal Draw which the Trustee is required to allocate under
          clause 5.9 on or before the Payment Date for that Collection Period;
          and

     (c)  any Liquidity Draws.

     TOTAL INVESTED AMOUNT means, at any time, the sum of:

     (a)  all Invested Amounts of all Class A-1 Notes; and

     (b)  the US$ Equivalent of all Invested Amounts of all A$ Notes,

     at that time.

     TOTAL PAYMENTS means, in relation to a Collection Period, all amounts paid
     or to be paid by the Trustee under clause 5.1 on the Payment Date in
     relation to that Collection Period.

     TOTAL STATED AMOUNT means, at any time, the sum of the aggregate of the
     Stated Amounts of all Notes at that time.

     TRANSACTION has the meaning given to it under the relevant ISDA Master
     Agreement.

     TRANSACTION DOCUMENT means each Transaction Document (as defined in the
     Master Trust Deed) to the extent that it relates to the Trust, the Notes or
     the Seller Loan Agreement.

     TRIGGER EVENT will subsist on any Payment Date if:

     (a)  the aggregate of the Stated Amounts for the Class B Notes and the
          Class C Notes, divided by the aggregate of the Stated Amounts for all
          Notes on that Payment Date, is less than 4.5%;

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     (b)  the average of the Arrears Percentages for the 12 months immediately
          preceding that Payment Date (or, where that Payment Date occurs within
          12 months of the Closing Date, for the period commencing on the
          Closing Date and ending on that Payment Date) (the RELEVANT PERIOD)
          exceeds 4%;

     (c)  cumulative Mortgage Shortfalls up to and including that Payment Date
          exceeds 10% of the aggregate Initial Invested Amount of the Class B
          Notes and the Class C Notes; or

     (d)  on that Payment Date, the Total Stated Amount of all Notes is equal to
          or less than 10% of the aggregate of the Initial Invested Amount of
          all Notes and the Trustee does not exercise the call option under
          clause 7.1 on the Call Date.

     TRUST means the Crusade Global Trust No. 2 of 2005 constituted under the
     Master Trust Deed and the Notice of Creation of Trust.

     TRUST DOCUMENT for the purposes of the Security Trust Deed includes each
     Transaction Document.

     TRUST EXPENSES means, in relation to a Collection Period (and in the
     following order of priority):

     (a)  first, Taxes payable in relation to the Trust for that Collection
          Period;

     (b)  second, any other Expenses relating to the Trust for that Collection
          Period which are not covered by (c) to (i) (inclusive) below;

     (c)  third, pari passu the Trustee's Fee for that Collection Period, the
          Security Trustee's Fee for that Collection Period, any fee payable to
          the Note Trustee under the Note Trust Deed for that Collection Period;

     (d)  fourth, the Servicing Fee for that Collection Period;

     (e)  fifth, the Manager's Fee for that Collection Period;

     (f)  sixth, the Custodian Fee for that Collection Period;

     (g)  seventh, pari passu any fee or expenses payable to the Principal
          Paying Agent, any other Paying Agent, the Note Registrar or the
          Calculation Agent under the Agency Agreement;

     (h)  eighth, any costs, charges or expenses (other than fees) incurred by,
          and any liabilities owing under any indemnity granted to the Manager,
          the Security Trustee, the Servicer, the Note Trustee, the Note
          Registrar, a Paying Agent or the Calculation Agent in relation to the
          Trust under the Transaction Documents, for that Collection Period; and

     (i)  ninth, any amounts payable to the Currency Swap Provider under clause
          5.22,

     all of the amounts in paragraphs (a) to (i) (inclusive) being EXPENSES for
     the purposes of the Master Trust Deed.

     US$ ACCOUNT means, in relation to the Trust, the US$ account opened with
     the Principal Paying Agent or any other account opened and maintained
     outside Australia, with the Principal Paying Agent so long as the Principal
     Paying Agent is an Approved Bank.

     US$ EQUIVALENT means:

     (a)  in relation to an amount denominated or to be denominated in
          Australian dollars, that amount converted to (and denominated in) US$
          at the relevant US$ Exchange Rate; or

     (b)  in relation to an amount denominated in US$ the amount of US$.

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     US$ EXCHANGE RATE means, on any date in relation to an amount denominated
     or to be denominated in Australian dollars, the rate of exchange (set as at
     the commencement of the Currency Swap) applicable under the Currency Swap
     for the exchange of Australian dollars for United States dollars.

     US$ NOTEHOLDER means, for the purposes of the Security Trust Deed, a Class
     A-1 Noteholder.

     VOTING MORTGAGEE means:

     (a)  with respect only to the enforcement of the security under the
          Security Trust Deed, for so long as the Secured Moneys of the Class
          A-1 Noteholders and the A$ Noteholders represent 75% or more of total
          Secured Moneys, the Noteholder Mortgagees alone; and

     (b)  at any other time (subject to the Note Trust Deed and clause 40.17 of
          the Security Trust Deed):

          (i)  the Note Trustee, acting on behalf of the Class A-1 Noteholders
               under the Note Trust Deed and clause 7 of the Security Trust Deed
               and, if the Note Trustee has become bound to take steps and/or to
               proceed hereunder and fails to do so within a reasonable time and
               such failure is continuing, the Class A-1 Noteholders, and then
               only if and to the extent the Class A-1 Noteholders are able to
               do so under the Transaction Documents and Australian law; and

          (ii) each other Mortgagee (other than a Class A-1 Noteholder).

2.2  INTERPRETATION

     Clause 1.2 of the Master Trust Deed is incorporated into this Supplementary
     Terms Notice as if set out in full, except that any reference to DEED is
     replaced by a reference to SUPPLEMENTARY TERMS NOTICE and any reference to
     UNITED STATES DOLLARS, USD and US$ is to currency of the United States of
     America.

2.3  LIMITATION OF LIABILITY

     (a)  GENERAL

          Clause 30 of the Master Trust Deed applies to the obligations and
          liabilities of the Trustee and the Manager under this Supplementary
          Terms Notice.

     (b)  LIABILITY OF TRUSTEE LIMITED TO ITS RIGHT OF INDEMNITY

          (i)  This Supplementary Terms Notice applies to the Trustee only in
               its capacity as trustee of the Trust and in no other capacity
               (except where the Transaction Documents provide otherwise).
               Subject to paragraph (iii) below, a liability arising under or in
               connection with this Supplementary Terms Notice or the Trust is
               limited to and can be enforced against the Trustee only to the
               extent to which it can be satisfied out of the assets and
               property of the Trust which are available to satisfy the right of
               the Trustee to be exonerated or indemnified for the liability.
               This limitation of the Trustee's liability applies despite any
               other provision of this Supplementary Terms Notice and extends to
               all liabilities and obligations of the Trustee in any way
               connected with any representation, warranty, conduct, omission,
               agreement or transaction related to this Supplementary Terms
               Notice or the Trust.

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          (ii) Subject to paragraph (iii) below, no person (including any
               Relevant Party) may take action against the Trustee in any
               capacity other than as trustee of the Trust or seek the
               appointment of a receiver (except under the Security Trust Deed),
               or a liquidator, an administrator or any similar person to the
               Trustee or prove in any liquidation, administration or
               arrangements of or affecting the Trustee.

          (iii) The provisions of this clause 2.3 shall not apply to any
               obligation or liability of the Trustee to the extent that it is
               not satisfied because under a Transaction Document or by
               operation of law there is a reduction in the extent of the
               Trustee's indemnification or exoneration out of the Assets of the
               Trust as a result of the Trustee's fraud, negligence, or Default.

          (iv) It is acknowledged that the Relevant Parties are responsible
               under this Supplementary Terms Notice or the other Transaction
               Documents for performing a variety of obligations relating to the
               Trust. No act or omission of the Trustee (including any related
               failure to satisfy its obligations under this Supplementary Terms
               Notice) will be considered fraud, negligence or Default of the
               Trustee for the purpose of paragraph (iii) above to the extent to
               which the act or omission was caused or contributed to by any
               failure by any Relevant Party or any person who has been
               delegated or appointed by the Trustee in accordance with the
               Transaction Documents to fulfil its obligations relating to the
               Trust or by any other act or omission of a Relevant Party or any
               such person.

          (v)  In exercising their powers under the Transaction Documents, each
               of the Trustee, the Security Trustee and the Noteholders must
               ensure that no attorney, agent, delegate, receiver or receiver
               and manager appointed by it in accordance with this Supplementary
               Terms Notice or any other Transaction Documents has authority to
               act on behalf of the Trustee in a way which exposes the Trustee
               to any personal liability and no act or omission of any such
               person will be considered fraud, negligence, or Default of the
               Trustee for the purpose of paragraph (iii) above.

          (vi) In this clause, RELEVANT PARTIES means each of the Manager, the
               Servicer, the Custodian, the Calculation Agent, the Principal
               Paying Agent, the Note Trustee, the Note Registrar and the
               provider of any Support Facility.

          (vii) Nothing in this clause limits the obligations expressly imposed
               on the Trustee under the Transaction Documents.

2.4  KNOWLEDGE OF TRUSTEE

     In relation to the Trust, the Trustee will be considered to have knowledge
     or notice of or be aware of any matter or thing if the Trustee has
     knowledge, notice or awareness of that matter or thing by virtue of the
     actual notice or awareness of the officers or employees of the Trustee who
     have day to day responsibility for the administration of the Trust.

2.5  BUSINESS DAY CONVENTION

     If any payment or calculation is to be made or any other thing done
     (including in relation to a Payment Date or a Collection Period) on a day
     which is not a Business Day, the date on which that payment or calculation
     is to be made or that thing done will be the next Business Day unless that
     day

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     falls in the next calendar month, in which case the date on which that
     payment or calculation is to be made or that thing done will be the
     preceding Business Day.

2.6  HEDGE AGREEMENTS

     (a)  The parties (other than the Note Trustee) acknowledge that:

          (i)  the provider of each Hedge Agreement (or, where the Manager is
               the provider of a Hedge Agreement, St. George) will prepare all
               confirmations under any ISDA Master Agreement for that Hedge
               Agreement; and

          (ii) none of the Trustee, the Manager or the provider of any Hedge
               Agreement will be liable to any other person (including each
               other party and each other Mortgagee) for entering into any such
               confirmation or Hedge Agreement, notwithstanding that the person
               preparing the confirmation is the counterparty to the relevant
               Hedge Agreement, except in the case of the Trustee or the
               Manager, where the Trustee or the Manager as the case may be, is
               found to have acted fraudulently or negligently.

     (b)  Without limiting paragraph (a), the Trustee appoints the Manager as
          its attorney to execute confirmations on behalf of the Trustee under
          any Hedge Agreement from time to time, provided that the Manager must
          notify and seek the prior written consent (such consent not to be
          unreasonably withheld) of the Trustee if the relevant confirmation
          amends the terms of the relevant Hedge Agreement.

     (c)  The Manager agrees to provide and the Trustee agrees to follow, all
          directions necessary to ensure that the Trustee complies with its
          obligations under any relevant Hedge Agreement including, without
          limitation:

          (i)  proposing a Replacement Provider (as defined in the relevant
               Hedge Agreement) under section 15(d)(ii) of the Interest Rate
               Swap;

          (ii) ensuring that the Trustee designates any Early Termination Date
               pursuant to Part 1(8)(ii) of the Currency Swap only at the
               direction of the Manager;

          (iii) procuring the substitution of Party B (as defined in the
               Currency Swap) as principal obligor under the Currency Swap in
               accordance with Section 6(aa)(iv) of the Currency Swap;

          (iv) directing the Trustee to enter into a Replacement Currency Swap
               (as defined in section 16(a) of the Currency Swap) under Section
               16(a) of the Currency Swap;

          (v)  notifying the Swap Provider if the Manager becomes actually aware
               of the occurrence of a Downgrade (as defined in the relevant
               Hedge Agreement);

          (vi) where the Trustee has not established a Swap Collateral Account
               (as defined in the relevant Hedge Agreement) and the Swap
               Provider is required to deposit monies into a Swap Collateral
               Account, the Manager must direct the Trustee to establish, as
               soon as practicable, and maintain in the name of the Trustee, an
               account with an Approved Bank (as defined in the relevant Hedge
               Agreement); and

          (vii) ensuring that the Trustee only makes withdrawals from the Swap
               Collateral Account (as defined in the relevant Hedge Agreement)
               or refunds the amount of

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               any reduction in the Swap Collateral Amount (as defined in the
               relevant Hedge Agreement) if directed to do so by the Manager.

2.7  AUSTRALIAN FINANCIAL SERVICES LICENCE

     Perpetual Trustee Company Limited, a related body corporate of the Trustee
     and the Security Trustee, has obtained an Australian Financial Services
     Licence under Part 7.6 of the Corporations Act (Australian Financial
     Services Licence No. 236643). Perpetual Trustee Company Limited has
     appointed each of Perpetual Trustees Consolidated Limited (Authorised
     Representative Number 264840) and P.T. Limited (Authorised Representative
     Number 266797) as its authorised representatives under that licence.

3.   DIRECTION AND TRUST BACK
--------------------------------------------------------------------------------

     (a)  A Trust Back, entitled CRUSADE GLOBAL TRUST BACK NO. 2 OF 2005, is
          created in relation to Other Secured Liabilities secured by the
          Purchased Receivable Securities.

     (b)  The Trustee, the Manager, St. George, the Custodian and the Security
          Trustee agree that the Trust Back will be a TRUST BACK for the
          purposes of the Transaction Documents.

4.   NOTES
--------------------------------------------------------------------------------

4.1  CONDITIONS OF NOTES

     (a)  The conditions of the A$ Notes will be as set out in the Master Trust
          Deed, as supplemented and amended by the provisions set out in this
          Supplementary Terms Notice.

     (b)  The conditions of the Class A-1 Notes will be as set out in the Master
          Trust Deed, the Conditions, the Note Trust Deed and this Supplementary
          Terms Notice.

4.2  SUMMARY OF CONDITIONS OF NOTES

     Under clauses 6.2 and clause 6.3 (as applicable) of the Master Trust Deed,
     the Manager provides the following information in respect of the Notes.

     (a)  Class of Note:              There will be the following Classes of
                                      Notes. Under the Transaction Documents
                                      each shall be treated as a separate Class
                                      of Notes:

                                      (i)   Class A-1 Notes

                                      (ii)  Class A-2 Notes

                                      (iii) Class B Notes

                                      (iv)  Class C Notes

     (b)  Total Initial Invested      (i)   Class A-1 Notes - US$[1,000,000,000]
          Amount of each Class of
          Notes:                      (ii)  Class A-2 Notes - A$[600,000,000]

                                      (iii) Class B Notes - A$[25,500,000]

                                      (iv)  Class C Notes - A$[9,800,000]

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     (c)  Manner and order in which   As set out in clause 5
          principal and interest is
          to be paid on Notes:

     (d)  Margin:                     In relation to a Note for an Interest
                                      Period ending prior to the Call Date, the
                                      following:

                                      (i)   Class A-1 Notes - [*]% per annum;

                                      (ii)  Class A-2 Notes - [*]% per annum

                                      (iii) Class B Notes - [*]% per annum

                                      (iv)  Class C Notes - [*]% per annum

                                      In relation to a Note for an Interest
                                      Period ending after the Call Date, the
                                      Step-Up Margin in respect of that Class of
                                      Note.

     (e)  Initial Invested Amount:    Class A-1 Notes: US$100,000 per Note and
                                      in multiples of US$1 in excess thereof.

                                      Class A-2 Notes: A$100,000 per Note.

                                      Class B Notes: A$100,000 per Note.

                                      Class C Notes: A$100,000 per Note.

     (f)  Rating:                     (i)   Class A Notes -
                                            AAA (S&P)/Aaa (Moody's)/AAA
                                            (Fitch Ratings).

                                      (ii)  Class B Notes -
                                            AA (S&P))/AA (Fitch Ratings).

                                      (iii) Class C Notes -
                                            A (S&P)/AA- (Fitch Ratings).

     (g)  Issue Price:                (i)   Class A Notes - issued at 100 per
                                            cent.

                                      (ii)  Class B Notes - issued at 100 per
                                            cent.

                                      (iii) Class C Notes - issued at 100 per
                                            cent.

     (h)  Quarterly Payment Dates:    (i)   Class A-1 Notes - the 14th day of
                                            February, May, August and November
                                            in each year (New York time)

                                      (iii) A$ Notes - the 14th day of February,
                                            May, August and November (Sydney
                                            time)

                                      (iv)  If, in either case, that day is not
                                            a Business Day, the Quarterly
                                            Payment Date shall be adjusted in
                                            accordance with the Modified
                                            Following Business

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                                            Day Convention. The first Quarterly
                                            Payment Date for the Class A-1 Notes
                                            will be 14 November 2005 (New York
                                            time) and the first Quarterly
                                            Payment Date for the A$ Notes will
                                            be 14 November 2005 (Sydney time).
                                            In each case, the final Quarterly
                                            Payment Date is the earlier of the
                                            applicable Final Maturity Date and
                                            the Payment Date on which the Notes
                                            are redeemed in full or, in the case
                                            of the Class A Notes, repurchased
                                            under the Conditions.

     (i)  Final Maturity Date:        (i)   Class A-1 Notes - the Quarterly
                                            Payment Date falling in August 2037
                                            (New York time).

                                      (iii) A$ Notes - the Quarterly Payment
                                            Date falling in August 2037 (Sydney
                                            time).

                                      (iv)  In each case, the date specified
                                            shall be subject to adjustment in
                                            accordance with the Modified
                                            Following Business Day Convention.

4.3  ISSUE OF NOTES

     (a)  Class A-1 Notes must be issued in amounts, or on terms, such that
          their offer for subscription and their issue will comply with:

          (i)  the Financial Services and Markets Act 2000 (UK) and all
               regulations made under or in relation to that Act; and

          (ii) the United States Securities Act of 1933, as amended (the
               SECURITIES ACT), the Exchange Act, all regulations made under or
               in relation to them, and all other laws or regulations of any
               jurisdiction of the United States of America regulating the offer
               or issue of, or subscription for, Notes.

     (b)  A$ Notes must be issued in minimum parcels or subscriptions which have
          an aggregate subscription amount of $500,000, (disregarding any amount
          payable to the extent to which it is to be paid out of money lent by
          the person offering the Notes or an associate (as defined in Division
          2 of Part 1.2 of the Corporations Act) or must otherwise constitute an
          issue that does not require disclosure under Part 6D.2 of the
          Corporations Act.

     (c)  No A$ Note has been or will be registered under the Securities Act and
          the A$ Notes may not be offered or sold within the United States or
          to, or for the account of benefit of, US persons except in accordance
          with Regulation S under the Securities Act or pursuant to an

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          exemption from the registration requirements of the Securities Act.
          Terms used in this paragraph have the meanings given to them by
          Regulation S under the Securities Act.

     (d)  If:

          (i)  the Trustee, or the Manager on behalf of the Trustee, has issued
               or agreed to issue any Notes and has received the Subscription
               Amount for them; and

          (ii) on the Note Issue Date, the aggregate Subscription Amount
               received is less than the amount specified in the corresponding
               Note Issue Direction,

          then (unless otherwise agreed);

          (iii) no Notes or no further Notes (as the case may be) shall be
               issued; and

          (iv) all Subscription Amounts received will be repaid without interest
               to the prospective subscribers for those Notes, and all issued
               Notes will be redeemed in full using the relevant Subscription
               Amounts.

4.4  TRUSTEE'S COVENANT TO NOTEHOLDERS AND THE NOTE TRUSTEE

     Subject to the terms of the Master Trust Deed and this Supplementary Terms
     Notice, the Trustee:

     (a)  acknowledges its indebtedness in respect of the Invested Amount of
          each Note and interest thereon;

     (b)  covenants for the benefit of each Noteholder and the Note Trustee that
          it will (subject to receiving any directions required under and given
          in accordance with the Transaction Documents):

          (i)  make all payments on or in respect of the Notes held by that
               Noteholder on the due date for payment;

          (ii) comply with the terms of this Supplementary Terms Notice and the
               Transaction Documents to which it is a party; and

          (iii) pay the Stated Amount in relation to the Notes held by that
               Noteholder on the Final Maturity Date and accrued and unpaid
               interest thereon.

4.5  REPAYMENT OF NOTES ON PAYMENT DATES

     (a)  On each Quarterly Payment Date for a Note in respect of which
          Principal Payments are required to be made, the Invested Amount of
          that Note shall be reduced by, and the obligations of the Trustee with
          respect to that Note shall be discharged to the extent of, the amount
          of the Principal Payment made on that Quarterly Payment Date in
          respect of that Note.

     (b)  All payments of principal on Class A-1 Notes will be made in United
          States dollars.

     (c)  All payments of principal on A$ Notes will be made in A$.

4.6  FINAL REDEMPTION

     Each Note shall be finally redeemed, and the obligations of the Trustee
     with respect to the payment of the Invested Amount of that Note shall be
     finally discharged, on the first to occur of:

     (a)  the date upon which the Invested Amount of that Note is reduced to
          zero;

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     (b)  the date upon which the relevant Noteholder renounces in writing all
          of its rights to any amounts payable under or in respect of that Note;

     (c)  in relation to the Class A-1 Notes only, the date on which all amounts
          received by the Note Trustee with respect to the enforcement of the
          Security Trust Deed are paid to the Principal Paying Agent;

     (d)  in relation to A$ Notes only, the date on which all amounts are
          received by the relevant A$ Noteholders;

     (e)  the Payment Date immediately following the date on which the Trustee
          completes a sale and realisation of all Assets of the Trust in
          accordance with the Master Trust Deed and this Supplementary Terms
          Notice; and

     (f)  the Final Maturity Date.

4.7  PERIOD DURING WHICH INTEREST ACCRUES

     Each Note bears interest calculated and payable in arrears in accordance
     with this Supplementary Terms Notice from and including the Closing Date to
     but excluding the date upon which that Note is finally redeemed under
     clause 4.6.

4.8  CALCULATION OF INTEREST

     (a)  Subject to paragraph (b) and (d), interest payable on each Note in a
          Class of Notes in respect of each Interest Period is calculated:

          (i)  on a daily basis at the Interest Rate for that Class of Notes;

          (ii) on the aggregate Invested Amount of all Notes in that Class as at
               the first day of that Interest Period; and

          (iii) on the basis of the actual number of days in that Interest
               Period and a year of 365 days (in the case of A$ Notes) or 360
               days (in the case of Class A-1 Notes),

          allocated rateably in accordance with the Invested Amount of such Note
          (or in the case of any Note which is a Book-Entry Note, the Invested
          Amount of the beneficial ownership interest in such class of Notes
          held by each owner of such Note.

     (b)  No interest will accrue on any Note for the period from and including:

          (i)  the date on which the Stated Amount of that Note is reduced to
               zero (provided that interest shall thereafter begin to accrue
               from (and including) any date on which the Stated Amount of that
               Note becomes greater than zero); or

          (ii) if the Stated Amount of the Note on the due date for redemption
               in full of the Note is not zero, the due date for redemption of
               the Note, unless after the due date for redemption, payment of
               principal due is improperly withheld or refused, following which
               interest shall continue to accrue on the Invested Amount of the
               Note at the rate from time to time applicable to the Note until
               the later of:

               (A)  the date on which the moneys in respect of that Note have
                    been received by:

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                    (1)  the Note Trustee or the Principal Paying Agent (in the
                         case of the Class A-1 Notes) or

                    (2)  the relevant Noteholder (in the case of the A$ Notes)

                    and notice to that effect is given in accordance with the
                    relevant Conditions; and

               (B)  the Stated Amount of that Note has been reduced to zero,
                    provided that interest shall thereafter begin to accrue from
                    (and including) any date on which the Stated Amount of that
                    Note becomes greater than zero.

     (c)  All payments of interest on Class A-1 Notes will be made in United
          States dollars.

     (d)  All payments of interest on A$ Notes will be made in Australian
          dollars.

     (e)  If Interest is not paid in respect of a Note on the date when due and
          payable (other than because the due date is not a Business Day) that
          unpaid Interest shall itself bear interest at the Interest Rate
          applicable from time to time on that Note until the unpaid Interest,
          and interest on it, is available for payment and:

          (i)  in the case of the Class A-1 Notes, notice of that availability
               has been duly given in accordance with Condition 12; or

          (ii) in the case of the A$ Notes, there is full satisfaction of those
               amounts, to be determined in accordance with clause 32.4 of the
               Master Trust Deed (as amended in accordance with this
               Supplementary Terms Notice).

4.9  STEP-UP MARGIN

     If the Trustee has not redeemed all of a Class of Notes on or before the
     Call Date, the Margin for that Class will increase for each Interest Period
     beginning on or after that date to the following percentages per annum
     (each a STEP-UP MARGIN):

     (a)  in the case of the Class A-1 Notes, [*]% per annum;

     (b)  in the case of the Class A-2 Notes, [*]% per annum;

     (c)  in the case of the Class B Notes, [*]% per annum; and

     (d)  in the case of the Class C Notes, [*]% per annum.

4.10 AGGREGATE RECEIPTS

     (a)  Notwithstanding anything in clauses 5.5, 5.6 and 5.8, no Noteholder
          will be entitled to receive aggregate principal under any of those
          clauses on any Note at any time in excess of the Invested Amount for
          that Note at that time.

     (b)  The Trustee, the Manager, the Note Trustee, the Security Trustee and
          the Paying Agents may treat the Noteholder as the absolute owner of
          that Note (whether or not that Note is overdue and despite any
          notation or notice to the contrary or writing on it or any notice of
          previous loss or theft of it or of trust or other interest in it) for
          the purpose of making payment and for all other purposes.

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5.   CASHFLOW ALLOCATION METHODOLOGY
--------------------------------------------------------------------------------

5.1  TOTAL AVAILABLE FUNDS

     (a)  (MONTHLY) Subject to paragraph (b), on each Monthly Payment Date
          (other than a Quarterly Payment Date) and based on the calculations,
          instructions and directions provided to it by the Manager, the Trustee
          must pay out of Total Available Funds, in relation to the Monthly
          Collection Period ending immediately before that Monthly Payment Date,
          the following amounts in the following order of priority:

          (i)  first, an amount up to any Accrued Interest Adjustment required
               to be paid to the Approved Seller (and each of the Trustee, the
               Noteholders and the other Creditors that have the benefit of the
               Security Trust Deed acknowledges and agrees that it has no
               entitlement to the moneys comprising the Accrued Interest
               Adjustment); and

          (ii) second, any interest payable by the Trustee under the Redraw
               Facility Agreement.

     (b)  (LIMIT) The Trustee shall only make a payment under paragraph (a) if
          it is directed in writing to do so by the Manager and only to the
          extent that any Total Available Funds remain from which to make the
          payment after amounts with priority to that payment have been
          distributed.

     (c)  (QUARTERLY) Subject to paragraph (d), on each Quarterly Payment Date,
          and based on the calculations, instructions and directions provided to
          it by the Manager, the Trustee must pay or cause to be paid out of
          Total Available Funds, in relation to the Quarterly Collection Period
          ending immediately before that Quarterly Payment Date, the following
          amounts in the following order of priority:

          (i)  first, an amount up to any Accrued Interest Adjustment required
               to be paid to the Approved Seller (and each of the Trustee, the
               Noteholders and the other Creditors that have the benefit of the
               Security Trust Deed acknowledges and agrees that it has no
               entitlement to the moneys comprising the Accrued Interest
               Adjustment);

          (ii) second, payment to the Swap Provider under the Interest Rate Swap
               of any Break Payments received by or on behalf of the Trustee
               from an Obligor or a Mortgage Insurer during the Quarterly
               Collection Period;

          (iii) third, (unless specified later in this clause 5.1(c)), Trust
               Expenses which have been incurred prior to that Quarterly Payment
               Date and which have not previously been paid or reimbursed under
               an application of this clause 5.1 (in the order of priority set
               out in the definition of TRUST EXPENSES);

          (iv) fourth, payment to the Redraw Facility Provider of any fees
               payable by the Trustee under the Redraw Facility Agreement;

          (v)  fifth, without duplication, any amounts that would have been
               payable under this clause 5.1(c) (other than under sub-paragraphs
               (vi) to (xi) (inclusive)) on any previous Quarterly Payment Date,
               if there had been sufficient Total Available Funds, which have
               not been paid by the Trustee and in the order they would have
               been paid under that prior application of this clause 5;

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          (vi) sixth, pari passu and rateably as between themselves:

               (A)  any interest payable by the Trustee under the Redraw
                    Facility Agreement;

               (B)  the payment to the Currency Swap Provider under the Currency
                    Swap of the A$ Class A-1 Interest Amount payable under that
                    Currency Swap at that date;

               (C)  the payment to the Class A-2 Noteholders of the Class A-2
                    Interest amount for the relevant Interest Period;

               (D)  payment to the relevant Swap Provider of the net amount (if
                    any) due to it under the Interest Rate Swap;

               (E)  payment to St. George of the fee due to it as standby basis
                    swap provider under the Basis Swap;

               (F)  payment to St. George of the fee due to it as standby
                    interest rate swap provider under the Interest Rate Swap;
                    and

               (G)  payment to the relevant Swap Provider of the net amount (if
                    any) due to it under the Basis Swap.

          (vii) seventh, any amounts that would have been payable under
               sub-paragraph (vi) on any previous Quarterly Payment Date, if
               there had been sufficient Total Available Funds, which have not
               been paid by the Trustee;

          (viii) eighth, the payment to the Class B Noteholders of the relevant
               Class B Interest amount as at that date;

          (ix) ninth, any amounts that would have been payable under
               sub-paragraph (viii) on any previous Quarterly Payment Date, if
               there had been sufficient Total Available Funds, which have not
               been paid by the Trustee;

          (x)  tenth, the payment to the Class C Noteholders of the Class C
               Interest amount for the relevant Interest Period; and

          (xi) eleventh, any amounts that would have been payable under
               sub-paragraph (x) on any previous Quarterly Payment Date, if
               there had been sufficient Total Available Funds, which have not
               been paid by the Trustee.

     (d)  The Trustee shall only make a payment under any of sub-paragraphs
          (c)(i) to (c)(xi) inclusive if it is directed in writing to do so by
          the Manager and only to the extent that any Total Available Funds
          remain from which to make the payment after amounts with priority to
          that payment have been distributed.

5.2  EXCESS AVAILABLE INCOME - REIMBURSEMENT OF CHARGE OFFS AND PRINCIPAL DRAWS

     (a)  Subject to paragraph (b), on each Quarterly Determination Date, the
          Manager must apply any Excess Available Income for the Quarterly
          Collection Period relating to that Quarterly Determination Date in the
          following order of priority:

          (i)  first, towards reimbursement of all Principal Charge Offs for
               that Quarterly Collection Period;

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          (ii) second, towards all Liquidity Draws which have not been repaid as
               at that Quarterly Payment Date;

          (iii) third, towards all Principal Draws which have not been repaid as
               at that Quarterly Payment Date;

          (iv) fourth, pari passu and rateably between themselves (based on the
               Redraw Stated Amount and in the case of the Class A-1 Notes on
               the Class A-1 A$ Equivalent of the Stated Amount of the Class A-1
               Notes and in the case of the Class A-2 Notes on the Stated Amount
               of the Class A-2 Notes, as the case may be):

               (A)  as a payment, to the Currency Swap Provider under the
                    Confirmation relating to the Class A-1 Notes, of the A$
                    Equivalent of any Carryover Class A Charge Offs relating to
                    the Class A-1 Notes;

               (B)  as a payment to the Class A-2 Noteholders of an amount equal
                    to the Carryover Class A Charge Offs relating to the Class
                    A-2 Notes; and

               (C)  as a repayment under the Redraw Facility Agreement, as a
                    reduction of, and to the extent of, the Carryover Redraw
                    Charge Offs;

          (v)  fifth, to be applied to reinstate an amount equal to the
               Carryover Class B Charge Offs relating to the Class B Notes; and

          (vi) sixth, to be applied to reinstate an amount equal to the
               Carryover Class C Charge Offs relating to the Class C Notes.

          Any amount applied pursuant to sub-paragraphs (i) to (vi) (inclusive)
          above will be treated as Principal Collections to the extent of that
          application and in the case of amounts paid under sub-paragraph (iv),
          (v) or (vi) will be paid on the Payment Date following that
          Determination Date.

     (b)  The Trustee shall only make a payment under any of sub-paragraphs
          (a)(i) to (a)(vi) inclusive if it is directed in writing to do so by
          the Manager and only to the extent that any Excess Available Income
          remains from which to make the payment after amounts with priority to
          that payment have been distributed.

5.3  EXCESS DISTRIBUTION

     (a)  The Trustee must at the written direction of the Manager pay any
          Excess Distribution for a Quarterly Collection Period to the Residual
          Income Beneficiary on the relevant Quarterly Payment Date.

     (b)  The Trustee may not recover any Excess Distributions from the Residual
          Income Beneficiary once they are paid to the Residual Income
          Beneficiary except where there has been a manifest error in the
          relevant calculation of the Excess Distributions.

5.4  INITIAL PRINCIPAL DISTRIBUTIONS

     (a)  (MONTHLY) Subject to paragraph (b), on each Monthly Payment Date
          (other than a Quarterly Payment Date) and based on the calculations,
          instructions and directions provided to it by the Manager, the Trustee
          must distribute or cause to be distributed out of Principal

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          Collections, in relation to the Monthly Collection Period ending
          immediately before that Monthly Payment Date, the following amounts in
          the following order of priority:

          (i)  first, to allocate to Total Available Funds any Principal Draw
               calculated in accordance with clause 5.9; and

          (ii) second, to retain in the Collection Account as a provision such
               amount as the Manager determines is appropriate to make for any
               anticipated shortfalls in payments under clause 5.1 on the
               following Monthly Payment Date or Quarterly Payment Date.

     (b)  (MONTHLY LIMIT) The Trustee shall only make a payment under any of
          sub-paragraphs (a)(i) and (a)(ii) inclusive if it is directed in
          writing to do so by the Manager and only to the extent that any
          Principal Collections remain from which to make the payment after
          amounts with priority to that payment have been distributed.

     (c)  (QUARTERLY) Subject to paragraph (d), on each Quarterly Payment Date,
          and based on the calculations, instructions and directions provided to
          it by the Manager, the Trustee must distribute or cause to be
          distributed out of Principal Collections, in relation to the Quarterly
          Collection Period ending immediately before that Quarterly Payment
          Date, the following amounts in the following order of priority:

          (i)  first, to allocate to Total Available Funds any Principal Draws
               calculated in accordance with clause 5.9;

          (ii) second, to retain in the Collection Account as a provision such
               amount as the Manager determines is appropriate to make for any
               anticipated shortfalls in payments under clause 5.1 on the
               following Monthly Payment Date or Quarterly Payment Date;

          (iii) third, subject to clause 5.8(d), to repay any Redraws and
               Further Advances provided by the Approved Seller in relation to
               Purchased Receivables in accordance with clause 5.8 to the extent
               that it has not previously been reimbursed in relation to those
               Redraws and Further Advances;

          (iv) fourth, to repay all Redraw Principal Outstanding under the
               Redraw Facility Agreement on that Quarterly Payment Date; and

          (v)  fifth, to retain in the Collection Account as a provision to
               reimburse further Redraws and Further Advances an amount up to
               the Redraw Retention Amount for the next Quarterly Collection
               Period.

     (d)  (QUARTERLY LIMIT) The Trustee shall only make a payment under any of
          sub-paragraphs (c)(i) to (c)(v) (inclusive) if it is directed in
          writing to do so by the Manager and only to the extent that any
          Principal Collections remain from which to make the payment after
          amounts with priority to that payment have been distributed.

5.5  PRINCIPAL DISTRIBUTIONS PRIOR TO STEPDOWN DATE

     (a)  Subject to paragraph (b), on each Quarterly Payment Date prior to the
          Stepdown Date, or at any time if a Trigger Event is subsisting, and
          based on the calculations, instructions and directions provided to it
          by the Manager, the Trustee must distribute or cause to be

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          distributed out of Principal Collections, in relation to the Quarterly
          Collection Period ending immediately before that Quarterly Payment
          Date, the following amounts in the following order of priority:

          (i)  first, all the Initial Principal Distributions for that
               Collection Period;

          (ii) second, as a deposit to the Liquidity Reserve until amounts
               standing to the credit of the Liquidity Reserve equal to the then
               Liquidity Limit;

          (iii) third, pari passu and rateably between the Class A-1 Notes and
               Class A-2 Notes:

               (A)  as a payment to the Currency Swap Provider under the
                    Currency Swap, of an amount equal to the lesser of:

                    (1)  the Class A-1 Proportion of the amount available for
                         distribution under this sub-paragraph (iii) after all
                         payments which have priority under this clause 5.5; and

                    (2)  the A$ Equivalent of the Invested Amounts for all Class
                         A-1 Notes; and

               (B)  as a payment to the Class A-2 Noteholders, of an amount
                    equal to the lesser of:

                    (1)  the Class A-2 Proportion of the amount available for
                         distribution under this sub-paragraph (iii) after all
                         payments which have priority under this clause 5.5; and

                    (2)  the Invested Amounts in respect of all Class A-2 Notes;

          (iv) fourth, as payment to the Class B Noteholders, of an amount equal
               to the lesser of:

               (A)  the amount available for distribution under this
                    sub-paragraph (iv) after all payments which have priority
                    under this clause 5.5; and

               (B)  the Invested Amounts in respect of all Class B Notes;

          (v)  fifth, as payment to the Class C Noteholders, of an amount equal
               to the lesser of:

               (A)  the amount available for distribution under this
                    sub-paragraph (v) after all payments which have priority
                    under this clause 5.5; and

               (B)  the Invested Amounts in respect of all Class C Notes.

     (b)  (LIMIT) The Trustee shall only make a payment under any of
          sub-paragraphs (a)(i) to (a)(v) inclusive if it is directed in writing
          to do so by the Manager and only to the extent that any Principal
          Collections remain from which to make the payment after amounts with
          priority to that payment have been distributed.

5.6  PRINCIPAL DISTRIBUTIONS ON AND AFTER STEPDOWN DATE

     (a)  Subject to paragraph (b), on the Stepdown Date and on each Quarterly
          Payment Date after the Stepdown Date, provided that no Trigger Event
          is subsisting, and based on the calculations, instructions and
          directions provided to it by the Manager, the Trustee must distribute
          or cause to be distributed out of Principal Collections, in relation
          to the Quarterly

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          Collection Period ending immediately before that Quarterly Payment
          Date, the following amounts in the following order of priority:

          (i)  first, all the Initial Principal Distributions for that
               Collection Period;

          (ii) second, as a deposit to the Liquidity Account until the amount
               standing to the credit of the Liquidity Account is equal to the
               then current Liquidity Limit;

          (iii) third, as a payment, out of the Class A Principal Distribution
               Amount pari passu and rateably between the Class A-1 Notes and
               the Class A-2 Notes:

               (A)  to the Currency Swap Provider under the Currency Swap, of an
                    amount equal to the lesser of:

                    (1)  the Class A-1 Proportion of that Class A Principal
                         Distribution Amount; and

                    (2)  the A$ Equivalent of the aggregate Invested Amounts of
                         the Class A-1 Notes on that Payment Date;

               (B)  as a payment to the Class A-2 Noteholders of principal on
                    the Class A-2 Notes of an amount equal to the lesser of:

                    (1)  the Class A-2 Proportion of that amount of the Class A
                         Principal Distribution Amount; and

                    (2)  the aggregate Invested Amount of the Class A-2 Notes on
                         that Payment Date,

          (iv) fourth, as a payment out of the Class B Principal Distribution
               Amount for that Payment Date to the Class B Noteholders of an
               amount equal to the lesser of:

               (A)  the Class B Principal Distribution Amount; and

               (B)  the aggregate Invested Amount of the Class B Notes on that
                    Payment Date; and

          (v)  fifth, as a payment out of the Class C Principal Distribution
               Amount for that Payment Date to the Class C Noteholders of an
               amount equal to the lesser of:

               (A)  the Class C Principal Distribution Amount; and

               (B)  the aggregate Invested Amount of the Class C Notes on that
                    Payment Date.

     (b)  (LIMIT) The Trustee shall only make a payment under any of
          sub-paragraphs (a)(i) to (a)(v) (inclusive) above if it is directed in
          writing to do so by the Manager and only to the extent that any
          Principal Collections remain from which to make the payment after
          amounts with priority to that payment have been distributed.

5.7  FINAL MATURITY DATE

     On the Business Day immediately following the date on which all Secured
     Moneys (as defined in the Security Trust Deed) are fully and finally
     repaid, and only after payment of all amounts referred to in clauses 5.3,
     5.4 and 5.5(a), the Trustee must pay any Principal Collections which remain
     available:

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     (a)  first, to the Approved Seller in reduction of the Principal
          Outstanding (as defined in the Seller Loan Agreement) as a full and
          final settlement of the obligations of the Trustee under the Seller
          Loan Agreement; and

     (b)  second, to the Residual Income Beneficiary as a distribution of
          capital of the Trust.

5.8  REDRAWS AND FURTHER ADVANCES

     (a)  The Approved Seller, after receiving confirmation that it may do so
          from the Manager, may make:

          (i)  Redraws to Obligors under Purchased Receivables so that the then
               scheduled principal balance of those Purchased Receivables is not
               exceeded; and

          (ii) Further Advances such that the then scheduled principal balance
               of those Purchased Loans is exceeded, provided that the
               restrictions in paragraph (f) are observed.

     (b)  The Approved Seller will be reimbursed in relation to any Redraw and
          Further Advance for which it has not previously been reimbursed under
          clause 5.4.

     (c)  On each Quarterly Determination Date the Manager shall determine an
          amount, not exceeding 2% of the total Invested Amount of all Notes,
          which it reasonably anticipates will be required in the Quarterly
          Collection Period in which that Quarterly Determination Date occurs to
          fund further Redraws and Further Advances under Purchased Receivables
          in addition to any prepayments of principal that it anticipates will
          be received from Obligors during that Quarterly Collection Period.
          That amount, from time to time, less amounts withdrawn or deposited as
          described in this clause 5.8, is called the REDRAW RETENTION AMOUNT.
          The Manager shall on the day of such determination advise the Trustee
          of the amount so determined.

     (d)  In addition to the Approved Seller's right of reimbursement under
          clause 5.8(b), the Trustee shall on each Business Day it receives a
          direction from the Manager to do so, reimburse the Approved Seller for
          Redraws and Further Advances made on or before that Business Day for
          which it has not received reimbursement but only to the extent of the
          aggregate of:

          (i)  the Redraw Retention Amount for that Quarterly Collection Period
               to the extent it has been funded under clause 5.4(c)(v); and

          (ii) any amount which the Manager is entitled to direct the Trustee to
               draw under the Redraw Facility Agreement at that time.

     (e)  If the Manager determines on any Business Day that there is a Redraw
          Shortfall, the Manager may on that date direct in writing the Trustee
          to make a drawing under the Redraw Facility Agreement on that or any
          other Business Day up to the amount which the Trustee is permitted to
          draw under clause 3.1(c) of the Redraw Facility Agreement at that
          time.

     (f)  The Approved Seller may not make a Further Advance, and the Manager
          may not confirm the making of a Further Advance, under sub-paragraph
          (a) unless:

          (i)  the Further Advance is made not more than one year after the
               Closing Date;

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          (ii) the aggregate amount of that Further Advance and other Further
               Advances made on or before the relevant funding date, does not
               exceed 5% of the total Initial Invested Amount of all Notes;

          (iii) no Carryover Charge Offs subsist at the relevant funding date;

          (iv) the aggregate outstanding principal balance of Purchased Loans
               which 60 days or more in Arrears as at the relevant funding date
               is less than 4% of the aggregate outstanding principal balance of
               all Purchased Loans at that time;

          (v)  following the Further Advance, the weighted average LVR of all
               Purchased Loans is less than or equal to the weighted average LVR
               of all Purchased Loans when acquired by the Trustee on the
               Closing Date;

          (vi) if, following the Further Advance, the LVR of the relevant
               Purchased Receivable is greater than 80% (or 75% where the
               outstanding balance on the Purchased Receivable exceeds
               $1,000,000 if secured by a single property), a Specific Mortgage
               Insurance Policy is entered into by the Trustee in respect of
               that Purchased Receivable; and

          (vii) after the Further Advance is made, the relevant Purchased
               Receivable satisfies the Eligibility Criteria.

5.9  DETERMINATION DATE - PAYMENT SHORTFALL

     If the Manager determines on any Determination Date that there is a Payment
     Shortfall for the relevant Collection Period, the Manager must direct the
     Trustee to pay out of Principal Collections, as a principal distribution
     under clause 5.4, an amount (the PRINCIPAL DRAW) equal to the lesser of:

     (a)  the Payment Shortfall; and

     (b)  the amount of Principal Collections available for distribution on the
          Payment Date following that Determination Date.

5.10 LIQUIDITY DRAWS

     (a)  The Manager, on behalf of the Trustee, shall, by no later than the
          Closing Date, establish as a separate ledger of the Collection Account
          an account (the LIQUIDITY ACCOUNT) to which amounts may be credited,
          or from which amounts may be drawn, under this Supplementary Terms
          Notice.

     (b)  If the Manager determines on any Determination Date that, after having
          made a Principal Draw, the relevant Payment Shortfall will not be
          fully met (the remaining shortfall being a LIQUIDITY SHORTFALL), the
          Manager must direct the Trustee to apply from the Liquidity Account an
          amount (the LIQUIDITY DRAW) on or before the Payment Date following
          that Determination Date equal to the lesser of:

          (i)  the Liquidity Shortfall; and

          (ii) the Liquidity Reserve.

     The Trustee must, if so directed by the Manager, make that Liquidity Draw
     and have the proceeds of the Liquidity Draw deposited or transferred into
     the Collection Account on or before the relevant

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     Payment Date. The Manager must deal with the amount so deposited in
     accordance with this clause 5.

5.11 ALLOCATING LIQUIDATION LOSSES

     On each Quarterly Determination Date, the Manager must determine, in
     relation to the aggregate of all Liquidation Losses arising during that
     Quarterly Collection Period:

     (a)  the amount of those Liquidation Losses which is attributable to
          interest, fees and expenses in relation to the relevant Purchased
          Receivables (FINANCE CHARGE LOSS); and

     (b)  the amount of those Liquidation Losses which is attributable to
          principal in relation to the relevant Purchased Receivables (PRINCIPAL
          LOSS),

     on the basis that all Liquidation Proceeds actually received by or on
     behalf of the Trustee in relation to a Purchased Receivable are applied
     first against interest, fees and other Enforcement Expenses (other than
     Property Restoration Expenses) relating to that Purchased Receivable, and
     then against the Housing Loan Principal and Property Restoration Expenses
     relating to that Purchased Receivable.

5.12 INSURANCE CLAIMS

     (a)  If, on any Monthly Determination Date, the Manager determines that
          there has been a Liquidation Loss in relation to a Purchased
          Receivable during the immediately preceding Monthly Collection Period,
          the Manager shall direct the Servicer (if the Servicer has not already
          done so), promptly, and in any event so that the claim is made within
          the time limit specified in the relevant Mortgage Insurance Policy for
          that Purchased Receivable without the amount of the claim becoming
          liable to be reduced by reason of delay, to make a claim under the
          relevant Mortgage Insurance Policy.

     (b)  Upon receipt of any amount under or in respect of a Mortgage Insurance
          Policy in payment of a claim referred to in paragraph (a), the Manager
          must determine which part of the amount is attributable to interest,
          fees and other amounts in the nature of income, and which part of that
          amount is attributable to principal.

5.13 PAYMENTS BEFORE PAYMENT DATE

     (a)  Subject to the Transaction Documents, by no later than 4:00 pm (Sydney
          time) on the Remittance Date for a Collection Period, the Manager must
          deposit or use its best endeavours to procure that the Servicer
          deposits, in the Collection Account all Available Income and Principal
          Collections for that Collection Period to the extent received on or
          before that date.

     (b)  The Manager must direct the Trustee to:

          (i)  apply amounts credited to the Collection Account in making
               payments in discharge of the Trustee's obligations under this
               clause 5; and

          (ii) make the applications and reinstatements required or contemplated
               by this clause 5,

          in each case, under and in accordance with this clause 5.

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5.14 CHARGE OFFS

     If the Principal Charge Offs for any Quarterly Collection Period exceed the
     Excess Available Income calculated on the Quarterly Determination Date for
     that Quarterly Collection Period, the Manager must, on and with effect from
     the Quarterly Payment Date immediately following the end of the Quarterly
     Collection Period:

     (a)  reduce pari passu and rateably as between themselves the Class C
          Stated Amount of each of the Class C Notes by the amount of that
          excess which is attributable to each Class C Note until the Class C
          Stated Amount is zero (CLASS C CHARGE OFFS); and

     (b)  if the Class C Stated Amount is zero and any amount of that excess has
          not been applied under paragraph (a), reduce pari passu and rateably
          as between themselves the Class B Stated Amount of each of the Class B
          Notes by the amount of that excess which is attributable to each Class
          B Note until the Class B Stated Amount is zero (CLASS B CHARGE OFFS);
          and

     (c)  if both the Class C Stated Amount and Class B Stated Amount are zero
          and any amount of that excess has not been applied under paragraph
          (b), reduce pari passu and rateably as between the Class A Notes and
          the Redraw Facility Agreement with respect to the balance of that
          excess:

          (i)  rateably as between the Class A Notes, the Class A Stated Amount
               on each of the Class A Notes (or, where applicable, the US$
               Equivalent of the amount of that excess which is so attributable)
               until the Class A Stated Amount of that Class A Note is zero
               (CLASS A CHARGE OFFS); and

          (ii) the Redraw Stated Amount under the Redraw Facility Agreement
               applied against Redraw Advances (as defined in the Redraw
               Facility Agreement) in reverse chronological order of their
               Drawdown Dates (as defined in the Redraw Facility Agreement),
               until the Redraw Stated Amount is zero (REDRAW CHARGE OFFS).

5.15 PAYMENTS INTO US$ ACCOUNT

     (a)  The Trustee shall direct the Currency Swap Provider to pay all amounts
          denominated in US$ payable to the Trustee by the Currency Swap
          Provider under the Currency Swap into the US$ Account or to the
          Principal Paying Agent under the Agency Agreement on behalf of the
          Trustee.

     (b)  If any of the Trustee, the Manager or the Servicer receives any amount
          denominated in US$ from the Currency Swap Provider under the Currency
          Swap they will promptly pay that amount to the credit of the US$
          Account.

5.16 PAYMENTS OUT OF US$ ACCOUNT

     (a)  The Trustee shall, on the direction of the Manager, or shall require
          that the Principal Paying Agent on its behalf, pay all amounts
          credited to the US$ Account as follows and in accordance with the Note
          Trust Deed and the Agency Agreement.

     (b)  All amounts credited to the US$ Account by the Currency Swap Provider
          in relation to a payment by the Trustee in no order of priority:

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          (i)  under clauses 5.1(c)(v) and (c)(vi)(B), will be paid pari passu
               in relation to Class A-1 Notes as payments of Class A Interest on
               those Class A-1 Notes;

          (ii) under clause 5.2(a)(iv)(A), will be paid pari passu in relation
               to Class A-1 Notes in or towards reinstating the Stated Amount of
               those Class A-1 Notes, to the extent of the Carryover Class A
               Charge Offs; and

          (iii) amounts credited under clauses 5.5(a)(iii) and
               5.6(a)(iii)(A)(1), pari passu to Class A-1 Noteholders as Class A
               Principal Payments on the Class A-1 Notes until the Invested
               Amounts of the Class A-1 Notes have been reduced to zero.

5.17 ROUNDING OF AMOUNTS

     In making the calculations required or contemplated by this clause 5, the
     Manager shall round calculations to four decimal places, except that all
     monetary amounts shall be rounded down to the nearest cent or as otherwise
     required in this Supplementary Terms Notice.

5.18 MANAGER'S REPORT

     The Manager will provide to the Trustee, the Note Trustee and the
     Designated Rating Agencies, the Manager's Report for a Collection Period no
     later than 4pm (Sydney time) on the Quarterly Payment Date following that
     Collection Period.

5.19 PAYMENT PRIORITIES FOLLOWING AN EVENT OF DEFAULT: SECURITY TRUST DEED

     (a)  The proceeds from the enforcement of the Charge over the Mortgaged
          Property (each as defined in the Security Trust Deed) are to be
          applied in the following order of priority, subject to any other
          priority which may be required by statute or law:

          (i)  first, to pay (pari passu and rateably):

               (A)  any fees and other expenses due to the Security Trustee or
                    the Note Trustee;

               (B)  any fees and other expenses due to a Paying Agent, the
                    Calculation Agent or the Note Registrar;

               (C)  any Expenses then due and unpaid with respect to the Trust;
                    and

               (D)  the Receiver's remuneration;

          (ii) second, to pay all costs, charges, expenses and disbursements
               properly incurred in the exercise of any Power (as defined in the
               Security Trust Deed) by the Security Trustee, the Note Trustee, a
               Receiver or an Attorney or other amounts payable to the Security
               Trustee or the Note Trustee under the Security Trust Deed;

          (iii) third, to pay any unpaid Accrued Interest Adjustment due to the
               Approved Seller;

          (iv) fourth, to pay to the Swap Provider under the Interest Rate Swap
               any Break Payments received by or on behalf of the Trustee from a
               Borrower or any Mortgage Insurer and which have not previously
               been paid to that Swap Provider;

          (v)  fifth, to pay (pari passu and rateably):

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               (A)  all Secured Moneys owing to the Support Facility Providers
                    (other than the Currency Swap Provider);

               (B)  all Secured Moneys owing to the Class A Noteholders (as at
                    the date of payment);

               (C)  all Secured Moneys owing in relation to any Redraws or
                    Further Advances made by the Approved Seller for which it
                    has not been reimbursed under the Trust Documents; and

               (D)  all Secured Moneys owing to the Currency Swap Provider
                    specified in the Currency Swap (but without double counting
                    with payments under sub-paragraph (ii) or (v)(B));

          (vi) sixth, to pay (pari passu and rateably) all Secured Moneys owing
               to the Class B Noteholders (as at the date of payment);

          (vii) seventh, to pay (pari passu and rateably) all Secured Moneys
               owing to the Class C Noteholders (as at the date of payment);

          (viii) eighth, to pay (pari passu and rateably) any amounts not
               covered above owing to any Mortgagee under any Transaction
               Document;

          (ix) ninth, to pay the holder of any subsequent Security Interest over
               Trust Assets of which the Security Trustee has notice of the
               amount properly secured by the Security Interest; and

          (x)  tenth, to pay any surplus to the Trustee to be distributed in
               accordance with the Master Trust Deed and the Supplementary Terms
               Notice.

     (b)  The surplus will not carry interest. If the Security Trustee or a
          Receiver, Mortgagee or Attorney pays the surplus to the credit of an
          account in the name of the Trustee with any bank carrying on business
          in Australia, the Security Trustee, Receiver, Mortgagee or Attorney
          (as the case may be) will be under no further liability in respect of
          it.

     (c)  For the purposes of determining the pro rata entitlements of Class A
          Noteholders to amounts available for distribution under paragraph (a)
          (but without limiting the amounts actually available to be converted
          to the relevant currency at any time, or to be applied towards paying
          Class A Noteholders under paragraph (a)), the A$ Equivalent of the US$
          denominated principal amount owed to the Class A-1 Noteholders will be
          determined by the Manager and notified to the Trustee as being the A$
          amount equal to:

          (i)  if the Currency Swap is then in full force and effect, the A$
               Exchange Rate multiplied by the aggregate Secured Moneys (in US$)
               of the Class A-1 Notes; or

          (ii) if the Currency Swap is not then in full force and effect, the
               spot rate of exchange advised to the Security Trustee by the
               Manager which is used for calculation of amounts payable on the
               occurrence of an Early Termination Date under the relevant
               Currency Swap (as defined in that Currency Swap) multiplied by
               the aggregate Secured Moneys (in US$) of the Class A-1 Notes.

     (d)  Any amount to be paid to a Class of Noteholders must be made in A$ or
          US$, as applicable, based on the respective entitlements calculated
          under paragraph (c). All amounts held in

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          A$ must, to the extent required to be converted to US$ after the
          relevant Currency Swap has terminated, be converted to US$ at the
          available spot rate of exchange for acquiring that currency in the
          spot foreign exchange market as at the time of conversion, provided
          that if, following that conversion and based on their respective
          entitlements, any Class of Noteholders would be entitled to an amount
          greater than their Secured Moneys as at the relevant date of payment,
          the excess is to be applied (in the applicable currency) towards
          payment of the Secured Moneys of Mortgagees who rank equally within
          that Class of Noteholders.

5.20 PRESCRIPTION

     Despite any other provision of this Supplementary Terms Notice and the
     Master Trust Deed, Condition 8 of the Class A-1 Notes applies to all
     amounts payable in relation to any Class A-1 Note.

5.21 ACCOUNTING PROCEDURES: PRINCIPAL & INTEREST

     To facilitate the implementation of this Cashflow Allocation Methodology,
     the Manager will keep accounting records in accordance with the Transaction
     Documents and will keep separate ledgers, including a "Principal Account",
     "Income Account" and "Cash Account", into which credit and debit entries
     will be made to record receipts and payments of principal, income or
     amounts unallocated at the relevant time.

5.22 REPLACEMENT OF CURRENCY SWAP

     (a)  If the Currency Swap is terminated, the Trustee must, at the direction
          of the Manager, enter into one or more currency swaps which replace
          that Currency Swap (other than by way of transfer under section 6(b)
          of that Currency Swap) (collectively a REPLACEMENT CURRENCY SWAP) but
          only on the condition:

          (i)  that the Settlement Amount (as defined in that Currency Swap), if
               any, which is payable by the Trustee to that Currency Swap
               Provider on termination of that Currency Swap will be paid in
               full when due in accordance with this Supplementary Terms Notice
               and that Currency Swap;

          (ii) the ratings assigned to the Notes are not adversely affected; and

          (iii) the liability of the Trustee under that Replacement Currency
               Swap is limited to at least the same extent that its liability is
               limited under that Currency Swap.

     (b)  If the condition in paragraph (a) is satisfied, the Trustee must at
          the direction of the Manager enter into the Replacement Currency Swap
          and if it does so it must direct the provider of the Replacement
          Currency Swap (the REPLACEMENT SWAP PROVIDER) to pay any upfront
          premium to enter into the Replacement Currency Swap due to the Trustee
          directly to the Currency Swap Provider in satisfaction of and to the
          extent of the Trustee's obligation to pay the Settlement Amount to the
          Currency Swap Provider as referred to in paragraph (a). If the
          Settlement Amount (if any) is payable by the Currency Swap Provider to
          the Trustee, the Manager shall direct the Currency Swap Provider to
          pay such amount direct to the Replacement Currency Swap Provider in
          satisfaction of any upfront premium to enter into the Replacement
          Currency Swap. Where the upfront premium payable upon entry into the
          Replacement Currency Swap is:

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          (i)  payable by the Trustee to the Replacement Swap Provider, then
               the:

               (A)  excess of the Settlement Amount over the upfront premium
                    will be included as Available Income for the relevant
                    Collection Period; and

               (B)  excess of the upfront premium payable over the Settlement
                    Amount will be satisfied by the Trustee as a TRUST EXPENSE;
                    and

          (ii) payable by the Replacement Swap Provider to the Trustee, then
               the:

               (A)  excess of the Settlement Amount over the upfront premium
                    will be satisfied by the Trustee as a Trust Expense; and

               (B)  excess of the upfront premium over the Settlement Amount
                    will be included as Available Income for the relevant
                    Collection Period.

5.23 NOTICE OF CALCULATIONS

     The calculations outlined in this clause 5, or required to be made by the
     Manager under any Condition, must be made by the Manager and notified to
     the Trustee on each Determination Date. The Manager must also notify the
     Trustee of all details of payments which are to be made by or on behalf of
     the Trustee on each Payment Date. The Manager must also notify the Currency
     Swap Provider of all payments which are to be made by or on behalf of the
     Trustee on each Quarterly Payment Date under clauses 5.1(c)(v),
     5.1(c)(vi)(B), 5.2(a)(iv)(A), 5.5(a)(iii)(A) and 5.6(a)(iii)(A) on each
     relevant Quarterly Determination Date. In the absence of manifest error,
     each of the Trustee and the Currency Swap Provider is entitled to rely
     conclusively on (and will rely on) the Manager's calculations and
     notifications and is not required to (and it will not) investigate the
     accuracy of them.

5.24 BOND FACTORS

     (a)  On each Quarterly Determination Date, the Manager will, in respect of
          the Collection Period ending before that Quarterly Determination Date,
          calculate or otherwise ascertain the Class A Bond Factors, the Class B
          Bond Factor and the Class C Bond Factor.

     (b)  The Manager shall notify all Noteholders, the Principal Paying Agent,
          the Note Trustee and the Calculation Agent as soon as practicable
          after (and in any event by not later than the Quarterly Payment Date
          immediately following) the relevant Quarterly Determination Date of
          the relevant Class A Bond Factors, the Class B Bond Factor and the
          Class C Bond Factor.

5.25 LOAN OFFSET INTEREST

     On each Monthly Determination Date, the Approved Seller shall pay to the
     Trustee an amount equal to all Loan Offset Interest Amounts for the Monthly
     Collection Period immediately preceding that Monthly Determination Date.

6.   MASTER TRUST DEED AND SERVICING AGREEMENT
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6.1  COMPLETION OF DETAILS IN RELATION TO MASTER TRUST DEED

     (a)  (MANAGER FEE)

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          For the purpose of clause 15 of the Master Trust Deed, the fee payable
          to the Manager in respect of the Trust for each Quarterly Collection
          Period will be an amount calculated:

          (i)  on the aggregate Housing Loan Principal of the Purchased
               Receivables on the first day of that Quarterly Collection Period;

          (ii) at the rate of 0.09% per annum or as otherwise agreed by the
               Manager and the Trustee from time to time; and

          (iii) on the actual number of days in the Quarterly Collection Period
               divided by 365 days,

          and shall accrue due from day to day. That fee is payable in
          Australian dollars.

     (b)  (TRUSTEE'S FEE AND SECURITY TRUSTEE'S FEE)

          (i)  For the purpose of clause 19.1 of the Master Trust Deed and
               clause 11.2 of the Security Trust Deed, the combined fee payable
               to the Trustee and the Security Trustee in respect of the Trust
               for each Quarterly Collection Period will be an amount
               calculated:

               (A)  on the aggregate Housing Loan Principal of the Purchased
                    Receivables on the first day of that Quarterly Collection
                    Period;

               (B)  at the rate agreed by the Manager, the Trustee and the
                    Security Trustee in writing from time to time; and

               (C)  on the actual number of days in the Quarterly Collection
                    Period divided by 365 days,

               and shall accrue due from day to day. That fee is payable in
               Australian dollars.

          (ii) If the Trustee or the Security Trustee (as the case may be) is
               required at any time to undertake duties which relate to the
               enforcement of the terms of any Transaction Document by the
               Trustee or Security Trustee (as the case may be) upon a default
               by any other party under the terms of that Transaction Document,
               the Trustee or Security Trustee (as the case may be) is entitled
               to such additional remuneration as may be agreed between the
               Trustee or the Security Trustee (as the case may be) and the
               Manager or, failing agreement, such amount as is determined by a
               merchant bank (acting as an expert and not as an arbitrator)
               selected by the Trustee or the Security Trustee (as the case may
               be). The determination of such merchant bank shall be conclusive
               and binding on the Manager and the Trustee or the Security
               Trustee (as the case may be) so far as the law allows.

     (c)  (SERVICING FEE)

          For the purpose of clause 6.1 of the Servicing Agreement, the fee
          payable to the Servicer in respect of the Trust for each Quarterly
          Collection Period will be an amount calculated:

          (i)  on the aggregate Housing Loan Principal of the Purchased
               Receivables on the first day of that Quarterly Collection Period;

          (ii) at the rate of 0.30% per annum or as otherwise agreed by the
               Manager, the Trustee and the Servicer from time to time; and

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          (iii) on the actual number of days in the Quarterly Collection Period
               divided by 365 days,

          or as otherwise agreed by the Trustee, the Manager and the Servicer.
          That fee shall accrue due from day to day. That fee is payable in
          Australian dollars.

     (d)  (CUSTODIAN FEE)

          For the purpose of clause 6.1 of the Custodian Agreement, the fee
          payable to the Custodian in respect of the Trust for each Quarterly
          Collection Period will be an amount calculated:

          (i)  on the aggregate Housing Loan Principal of the Purchased
               Receivables on the first day of that Quarterly Collection Period;

          (ii) at the rate of 0.015% per annum or as otherwise agreed by the
               Manager, the Trustee and the Custodian from time to time; and

          (iii) on the actual number of days in the Quarterly Collection Period
               divided by 365 days,

          or as otherwise agreed by the Trustee, the Manager and the Custodian.
          That fee shall accrue due from day to day. That fee is payable in
          Australian dollars.

     (e)  (FEE CHANGES TO TAKE ACCOUNT OF GST)

          Subject to clause 6.1(b)(i)(B), none of the above fees in this clause
          6.1 are to be increased by reference to any applicable goods and
          services tax unless:

          (i)  the Trustee, the Manager and the recipient of the relevant fee
               agree (that agreement not to be unreasonably withheld); and

          (ii) the increase will not result in the downgrading or withdrawal of
               the rating of any Notes.

6.2  AMENDMENTS TO MASTER TRUST DEED

     The Master Trust Deed is amended for the purpose of the Trust as follows:

     (a)  CLAUSE 1.1 - ACCOUNTS

          The definition of ACCOUNTS in clause 1.1 of the Master Trust Deed is
          deleted and replaced with the following definition:

          "ACCOUNTS means accounts prepared in accordance with clause 23.3."

     (b)  CLAUSE 1.1 - AUTHORISED INVESTMENT

          For the purposes of the definition of AUTHORISED INVESTMENT in clause
          1.1 of the Master Trust Deed:

          (i)  each of the investments in paragraphs (b), (d), (e), (f), (g),
               (h), (i) and (j) of that definition must have a rating of AAA
               (long term) or A-1+ (short term) (as the case may be) from S&P, a
               rating of Aaa (long term) or P-1 (short term) (as the case may
               be) from Moody's and a rating of AAA (long term) or F1+ (short
               term) (as the case may be) from Fitch Ratings to be an AUTHORISED
               INVESTMENT for the Trust;

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          (ii) each of the investments in paragraphs (b) and (d)-(j) inclusive
               of that definition must mature no later than the next Quarterly
               Payment Date following its acquisition;

          (iii) each investment must be denominated in A$;

          (iv) each investment must be of a type which does not adversely affect
               the 50% risk weighting attributed to the Notes by the Bank of
               England (as to which the Trustee may rely on external advice);

          (v)  each investment must be held by, or in the name of the Trustee or
               its nominee;

          (vi) sub-paragraph (i) is deleted and replaced with the following

                    securities which are "mortgage-backed securities" within the
                    meaning of each of the Duties Act, 1997 of New South Wales
                    and the Duties Act, 2000 of Victoria, the Duties Act, 2001
                    of Queensland and the Duties Act, 1999 of the Australian
                    Capital Territory (if applicable).

          (vii) sub-paragraph (j) is deleted and replaced with the following:

                    any other assets of a class of assets that are:

                    (A)  included within the definition "pool of mortgages"
                         under the DUTIES ACT 1997 of New South Wales;

                    (B)  included within the definition of "pool of mortgages"
                         under the DUTIES ACT 2000 of Victoria;

                    (C)  included within the definition "pool of mortgages"
                         under the DUTIES ACT 2001 of Queensland; and

                    (D)  included within the definition "pool of mortgages" (if
                         applicable) under the DUTIES ACT 1999 of the Australian
                         Capital Territory.

          (viii) the reference to STAMP DUTIES ACT, 1920 in the last paragraph
               of that definition is deleted and replaced with DUTIES ACT, 1997
               and the reference to STAMPS ACT, 1958 in that paragraph is
               deleted and replaced with DUTIES ACT, 2000.

     (c)  CLAUSE 1.1 - AUTHORISED SIGNATORY

          The definition of Authorised Signatory is deleted and replaced with
          the following:

               AUTHORISED SIGNATORY in relation to any corporation means any
               person from time to time certified in writing by two directors of
               the corporation (or, in the case of the Trustee, by any
               divisional manager) to be an authorised signatory of the
               corporation, whose signature appears on such certificate and
               which signature is certified thereon by such directors (or such
               divisional manager) to be that person's signature (and, in the
               case of the Trustee or the Security Trustee (as the case may be),
               also includes any officer of the Trustee or the Security Trustee
               (as the case may be) who has the word "manager", "head of",
               "group executive" or "counsel" in their title).

     (d)  CLAUSE 1.1 - CEDEL BANK

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          (i)  The definition of Cedel Bank is deleted and the following
               definition inserted:

               CLEARSTREAM, LUXEMBOURG means Clearstream Banking, societe
               anonyme.

          (ii) Each reference to "Cedel Bank" in:

               (A)  paragraph (u) of the definition of EXPENSES in clause 1.1;
                    and

               (B)  the definition of NOTEHOLDERS in clause 1.1,

               is deleted and replaced with the words Clearstream, Luxembourg.

     (e)  CLAUSE 1.1 - EUROCLEAR

          The definition of Euroclear is deleted and the following definition
          inserted:

               EUROCLEAR means Euroclear Bank S.A./N.V.

     (f)  CLAUSE 1.1 - EXPENSES

          For the purposes of the definition of EXPENSES in clause 1.1 of the
          Master Trust Deed, a new paragraph (w) is inserted as follows and the
          existing paragraph (w) becomes paragraph (x).

               (w)  any fees and expenses payable to any Stock Exchange or DTC
                    from time to time by the Trustee;

     (g)  CLAUSE 1.1 - EXTRAORDINARY RESOLUTION

          For the purposes of the definition of EXTRAORDINARY RESOLUTION in
          clause 1.1 of the Master Trust Deed, that definition is deleted and
          the following definition is inserted.

               EXTRAORDINARY RESOLUTION means, in relation to:

               (a)  any Class of A$ Noteholders subject to the provisions of the
                    Security Trust Deed:

                    (i)  a resolution passed at a meeting of that Class of A$
                         Noteholders duly convened and held in accordance with
                         the provisions contained in clause 29 of this Master
                         Trust Deed by a majority consisting of not less than
                         75% of the votes able to be cast by the relevant
                         Noteholders (cast by show of hands or poll, as the case
                         may be); or

                    (ii) a resolution in writing under clause 29 of this Master
                         Trust Deed signed by all Noteholders in the relevant
                         Class of Noteholders;

               (b)  all Noteholders means, subject to the provisions of the
                    Security Trust Deed a resolution passed, in a meeting of all
                    A$ Noteholders duly convened and held in accordance with the
                    provisions contained in clause 29 of this Master Trust Deed
                    and in a meeting of Class A-1 Noteholders in accordance with
                    the Note Trust Deed, by majority consisting of not less than
                    75% calculated as follows:

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                         A + U
                         -----
                           T

                         Where: A =   the US$ Equivalent of the aggregate
                                      Invested Amount of all A$ Notes held by A$
                                      Noteholders who voted in favour of the
                                      resolution;

                                U =   the aggregate Invested Amount of the
                                      Class A-1 Notes of the Class A-1 Notes
                                      held by Class A-1 Noteholders who voted in
                                      favour of the resolution

                                T =   the Total Invested Amount.

               (c)  all Class A Noteholders means, subject to the provisions of
                    the Security Trust Deed a resolution passed, in a meeting of
                    all Class A-1 Noteholders duly convened and held in
                    accordance with the Note Trust Deed and in a meeting of
                    Class A-2 Noteholders held in accordance with the provisions
                    contained in clause 29 of this Master Trust Deed, by
                    majority consisting of not less than 75% calculated as
                    follows:

                         A + U
                         -----
                           T

                         Where: A =   the US$ Equivalent of the aggregate
                                      Invested Amount of all Class A-2 Notes
                                      held by Class A-2 Noteholders who voted in
                                      favour of the resolution;

                                U =   the aggregate Invested Amount of the
                                      Class A-1 Notes held by Class A-1
                                      Noteholders who voted in favour of the
                                      resolution;

                                T =   the aggregate Invested Amount of all
                                      Class A Notes.

               (d)  all Class A-1 Noteholders has the meaning given in the Note
                    Trust Deed; and

               (e)  the Voting Mortgagees means, subject to the provisions of
                    the Security Trust Deed;

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                    (i)  where the Note Trustee is the only Voting Mortgagee, a
                         resolution of the Note Trustee alone; or

                    (ii) otherwise, in relation to the Voting Mortgagees;

                         (A)  a resolution passed at a meeting of the Voting
                              Mortgagees duly covered and held in accordance
                              with the provisions contained in the Security
                              Trustee Deed by a majority consisting of not less
                              than 75% of the votes capable of being cast at
                              that meeting by Voting Mortgagees present in
                              person or by proxy; or

                         (B)  a resolution in writing pursuant to the Security
                              Trust Deed signed by all the Voting Mortgagees.

     (h)  CLAUSE 1.1 - FITCH IBCA

          The definition of Fitch IBCA is deleted and the following definition
          inserted:

               FITCH RATINGS means Fitch Australia Pty Ltd (ACN 081 339 184).

     (i)  CLAUSE 1.1 - DEFINITIONS

          For the purpose of the Trust, the following new definitions are
          inserted, in alphabetical order, in clause 1.1 of the Master Trust
          Deed:

          APPLICATION FOR NOTES means an application for A$ Notes in the form of
          schedule 2 to the Supplementary Terms Notice or in such other form as
          may from time to time be agreed between the Trustee and the Manager.

          AUSTRACLEAR means Austraclear Limited.

          AUSTRACLEAR REGULATIONS means the regulations published by
          Austraclear.

          AUSTRACLEAR SYSTEM means the System as defined in the Austraclear
          Regulations.

          MARKED NOTE TRANSFER means a Note Transfer marked as in accordance
          with clause 7.15 of this Master Trust Deed.

          NOTE ACKNOWLEDGEMENT means an acknowledgement of the registration of a
          person as the holder of an A$ Note in the form set out in schedule 3
          to the relevant Supplementary Terms Notice or in such other form as
          may from time to time be agreed between the Trustee and the Manager.

          NOTE TRANSFER means a transfer and acceptance of A$ Notes materially
          in the form of schedule 4 to the relevant Supplementary Terms Notice
          or in such other form as may from time to time be agreed between the
          Trustee and the Manager.

          OFFSET ARRANGEMENt means any agreement or arrangement between the
          Approved Seller and a borrower under which the amount of interest
          which would (but for such agreement or arrangement) have been payable
          under or in respect of a Loan is reduced by reference to any credit
          balance on any savings or cheque account in the name of a borrower
          (whether alone or jointly with another person) which is kept with the
          Seller.

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          REGISTER means in relation to a Trust, the register required to be
          maintained in accordance with clause 28 of this Master Trust Deed.

          REPRESENTATIVE means:

          (i)  in the case of any A$ Noteholder, a person appointed as a proxy
               for that Noteholder under clause 29.9; and

          (ii) without limiting the generality of paragraph (a), in the case of
               an A$ Noteholder which is a body corporate, a person appointed
               under clause 29.10 by that A$ Noteholder."

     (j)  CLAUSE 1.1 - GUARANTEED INVESTMENT CONTRACT

          For the purposes of the definition of GUARANTEED INVESTMENT CONTRACT
          in clause 1.1 of the Master Trust Deed, the words "or any equivalent
          regulations issued under the Duties Act 1997" are inserted at the end
          of that definition.

     (k)  CLAUSE 1.1 - RESIDUAL INCOME BENEFICIARY

          New definitions are inserted in clause 1.1 as follows:

          RESIDUAL INCOME BENEFICIARY, in relation to a Trust, means any person
          who holds or is taken to hold a Residual Income Unit.

          RESIDUAL INCOME UNIT, in relation to a Trust, has the meaning given in
          the Supplementary Terms Notice for that Trust.

     (l)  CLAUSE 1.1 - TERMINATION DATE

          For the purpose of the definition of TERMINATION DATE in clause 1.1 of
          the Master Trust Deed, the words "and the Trustee and the Manager
          agree that no further Notes are proposed to be issued by the Trustee
          in relation to that Trust" are inserted at the end of paragraph (c)(i)
          of that definition.

     (m)  CLAUSE 1.2

          For the purposes of clause 1.2 of the Master Trust Deed, paragraph (l)
          is deleted.

     (n)  CLAUSE 4 - NOTES

          For the purposes of the Trust, clause 4 in the Master Trust Deed is
          deleted and the following new clause 4 is inserted as follows.

          4.   NOTES

          4.1  ACKNOWLEDGEMENT OF INDEBTEDNESS

               Subject to the terms of this Master Trust Deed and the
               Supplementary Terms Notice:

               (a)  each entry in the Register relating to a Trust in respect of
                    an A$ Note; and

               (b)  each Class A-1 Note issued by a Trust,

               constitutes an independent and separate acknowledgement to the
               relevant Noteholder by the Trustee of its indebtedness as trustee
               of the Trust for the Invested Amount of that Note together with
               the other rights given to Noteholders

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               under this Master Trust Deed, the Supplementary Terms Notice and
               the Security Trust Deed, and (in relation to a Class A-1 Note)
               the Note Trust Deed and the relevant Conditions.

          4.2  LEGAL NATURE OF NOTES

               (a)  A$ Notes will be in the form of inscribed stock, and the
                    Trustee's obligations in relation to those A$ Notes and
                    under this Master Trust and this Supplementary Terms Notice
                    in respect of those A$ Notes (including any obligation to
                    pay interest or principal) will become effective on
                    inscription in the Register for the Trust under this Master
                    Trust and this Supplementary Terms Notice of the details for
                    those A$ Notes.

               (b)  Class A-1 Notes will be in registered form in respect of
                    Book-Entry Notes and will be in registered form in respect
                    of Definitive Notes.

          4.3  TERMS OF NOTES

               (a)  All Notes issued by the Trustee as trustee of a Trust shall
                    be issued with the benefit of, and subject to, this Master
                    Trust Deed, the relevant Supplementary Terms Notice and the
                    relevant Security Trust Deed and, in relation to the Class
                    A-1 Notes, the Note Trust Deed and the relevant Conditions.

               (b)  The documents referred to in paragraph (a) are binding on
                    the Manager, the Trustee, the Note Trustee, the Security
                    Trustee and the Noteholders.

          4.4  INTEREST AND PRINCIPAL ENTITLEMENT OF NOTEHOLDERS

               Subject to this Master Trust Deed, the relevant Supplementary
               Terms Notice and the relevant Security Trust Deed and, in
               relation to the Class A-1 Notes, the Note Trust Deed and the
               relevant Conditions (and, in particular, subject to any such
               provisions which provide for principal losses to be charged off
               against any Notes), the Trustee as trustee of a Trust shall, in
               respect of the Notes issued by it in that capacity, pay or cause
               to be paid to the Noteholders (as relevant) of those Notes;

               (a)  (INTEREST) Interest Entitlement on each Interest Payment
                    Date; and

               (b)  (PRINCIPAL) their Principal Entitlement on each Quarterly
                    Payment Date.

          4.5  NOTES NOT INVALID IF ISSUED IN BREACH

               No Note shall be invalid or unenforceable on the ground that it
               was issued in breach of this Master Trust Deed, the relevant
               Supplementary Terms Notice or any other Transaction Document.

          4.6  LOCATION OF A$ NOTES

               The property in the A$ Notes shall for all purposes be regarded
               as situated at the place where the Register on which those A$
               Notes are recorded is located.

          4.7  NO DISCRIMINATION BETWEEN NOTEHOLDERS

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               There shall not be any discrimination or preference between Notes
               within the same Class, or the corresponding Noteholders, in
               relation to a Trust by reason of the time of issue of Notes or
               for any other reason, subject only to the Supplementary Terms
               Notice relating to the Notes, the terms of the Security Trust
               Deed (if any) relating to the Trust and (in relation to the Class
               A-1 Notes) the Note Trust Deed and the relevant Conditions.

          4.8  NOTE REGISTER

               In the event that any Definitive Notes are issued in registered
               form, the Trustee (or if the Trustee fails to do so, the Manager
               on behalf of the Trustee) will appoint a person to operate and
               maintain a register of those Definitive Notes in accordance with
               standard United States practice and law.

     (o)  CLAUSE 5.3 - RANKING OF INTEREST OF BENEFICIARY

          For the purposes of clause 5.3 of the Master Trust Deed, the Trustee
          may seek and rely upon a direction from the Note Trustee as to the
          interests of the Class A-1 Noteholders.

     (p)  CLAUSES 6.1 AND 6.6(A) - NOTE ISSUE DIRECTION

          (i)  For the purposes of clause 6.1 of the Master Trust Deed, the Note
               Issue Direction for the Notes may be issued by the Manager on or
               at any time prior to the Note Issue Date for the Notes.

          (ii) For the purposes of clause 6.6(a) of the Master Trust Deed, the
               certification by the Manager may occur on or at any time prior to
               the Note Issue Date for the Notes.

     (q)  CLAUSE 6.7 - SUBSCRIPTION AGREEMENT

          (i)  Clause 6.7(c) of the Master Trust Deed is amended by replacing
               paragraph (i) with the following:

               (i)  (TRANSACTION DOCUMENTS) entered into the Transaction
                    Documents to which it is a party in its capacity as trustee
                    of the Trust.

          (ii) For the purposes of clause 6.7(c)(iii), the Trustee will enter
               into the Subscription Agreements.

     (r)  CLAUSE 6.8 - ACTION FOLLOWING NOTE ISSUE

          For the purposes of the Trust, clause 6.8 of the Master Trust Deed is
          deleted and the following new clause 6.8 is inserted:

               6.8  ACTION FOLLOWING NOTE ISSUE

                    As soon as practicable after a Note Issue Date for a Trust:

                    (a)  in relation to A$ Notes only:

                         (i)  (ENTER DETAILS IN THE REGISTER) the Trustee shall
                              enter into the Register for that Trust in
                              accordance with clause 28 the information required
                              under clause 28.1;

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                         (ii) (ISSUE NOTE ACKNOWLEDGEMENT) the Trustee shall
                              issue a Note Acknowledgement to each A$ Noteholder
                              in respect of its holding of A$ Notes; and

                         (iii) (ISSUE MARKED NOTE TRANSFERS) if requested by an
                              A$ Noteholder in its Application for Notes, the
                              Trustee shall issue a Marked Note Transfer to that
                              A$ Noteholder; and

                    (b)  in relation to Class A-1 Notes only, the Trustee shall
                         issue those Class A-1 Notes in accordance with the
                         relevant Note Trust Deed and the relevant Supplementary
                         Terms Notice.

     (s)  CLAUSE 7 - TRANSFER OF NOTES

          For the purpose of this Trust, Clause 7 of the Master Trust Deed is
          deleted and the following new clause 7 is inserted:

          7.   TRANSFER OF NOTES

          7.1  NO RESTRICTIONS ON TRANSFER OF NOTES

               Subject to this Master Trust Deed and the relevant Supplementary
               Terms Notice and (in respect of the Class A-1 Notes) the Note
               Trust Deed and Conditions, there shall be no restriction on the
               transfer of Notes.

          7.2  MINIMUM TRANSFER

               (a)  An A$ Noteholder must not transfer any A$ Notes held by it
                    unless:

                    (i)  the amount payable by the transferee for those A$ Notes
                         is not less than A$500,000; or

                    (ii) the offer or invitation to the transferee by the A$
                         Noteholder in relation to the A$ Notes is an offer or
                         invitation that will not require disclosure under Part
                         6D.2 of the Corporations Act 2001 (Cth).

               (b)  No A$ Note has been or will be registered under the United
                    States Securities Act of 1933 as amended (the SECURITIES
                    ACT) and may not be offered or sold within the United States
                    or to, or for the account or benefit of, US persons except
                    in accordance with Regulation S under the Securities Act or
                    pursuant to an exemption from the registration requirements
                    of the Securities Act. Terms used in this paragraph have the
                    meanings given to them by Regulation S under the Securities
                    Act.

               (c)  No transfer may be made of any Class A-1 Notes in
                    circumstances which would fail to comply with all applicable
                    provisions of the Financial Services and Markets Act 2000
                    and all rules and regulations made thereunder.

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               (d)  None of the Trustee, the Manager, the Servicer, the Note
                    Managers, the Note Trustee, the Security Trustee or an
                    Approved Seller is liable to any Noteholder in relation to a
                    breach by that Noteholder of paragraph (b).

          7.3  FORM OF TRANSFER

               Every transfer of A$ Notes shall be effected by a Note Transfer.

          7.4  EXECUTION OF NOTE TRANSFER

               Every Note Transfer shall be duly completed and executed by the
               transferor and transferee.

          7.5  STAMPING OF NOTE TRANSFER

               Every Note Transfer lodged with the Trustee shall be duly stamped
               (if applicable).

          7.6  DELIVERY OF NOTE TRANSFER TO TRUSTEE

               Every Note Transfer shall be delivered to the Trustee, together
               with the Note Acknowledgement to which it relates, for
               registration.

          7.7  REGISTRATION OF TRANSFEREE AS A$ NOTEHOLDER

               Subject to this clause 7, the Trustee shall, on receipt of a Note
               Transfer, enter the transferee in the Register as the holder of
               the A$ Notes which are the subject of the Note Transfer.

          7.8  TRUSTEE ENTITLED TO REFUSE TO REGISTER NOTE TRANSFER

               The Trustee may refuse to register any Note Transfer which would
               result in:

               (a)  (BREACH) a contravention of or failure to observe:

                    (i)  (MASTER TRUST DEED) the terms of this Master Trust
                         Deed;

                    (ii) (SUPPLEMENTARY TERMS NOTICE) the terms of the
                         Supplementary Terms Notice;

                    (iii) (SECURITY TRUST DEED) the terms of the Security Trust
                         Deed; or

                    (iv) (THE LAW) any law of an Australian Jurisdiction; or

               (b)  (REQUIRES REGISTRATION) an obligation to procure
                    registration of any of the above with, or the approval of
                    any of the above by, any Government Agency.

          7.9  REFUSAL TO REGISTER ABSOLUTE

               The Trustee shall not be bound to give any reason for refusing to
               register any Note Transfer and its decision shall be final,
               conclusive and binding. If the Trustee refuses to register a Note
               Transfer it shall, as soon as practicable (and in no event later
               than 7 days after the date the Note Transfer was lodged with it),
               send to the transferor and the transferee notice of such refusal.

          7.10 NO FEE FOR REGISTRATION OF A NOTE TRANSFER

               No fee shall be charged for the registration of any Note
               Transfer.

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          7.11 TAKING EFFECT OF NOTE TRANSFERS

               (a)  (NOTE TRANSFER NOT EFFECTIVE UNTIL REGISTRATION) A Note
                    Transfer shall not take effect until registered by the
                    Trustee and until the transferee is entered in the Register
                    as the holder of the A$ Notes which are the subject of the
                    Note Transfer, the transferor shall remain the holder of
                    those A$ Notes.

               (b)  (TRANSFER RECEIVED WHEN REGISTER CLOSED) When a Note
                    Transfer is received by the Trustee during any period when
                    the Register is closed for any purpose, the Trustee shall
                    not register the Note Transfer until the Business Day after
                    the day on which that Register is reopened.

          7.12 RIGHTS AND OBLIGATIONS OF TRANSFEREE

               Subject to this Master Trust Deed and the relevant Supplementary
               Terms Notice, a transferee of A$ Notes, on being noted in the
               Register as the holder of the A$ Notes, shall have the following
               rights and obligations:

               (a)  (THOSE OF THE TRANSFEROR) all the rights and the obligations
                    which the transferor previously had; and

               (b)  (THOSE UNDER MASTER TRUST DEED) all the rights and
                    obligations of an A$ Noteholder as provided by this Master
                    Trust Deed and the relevant Supplementary Terms Notice as if
                    the transferee was originally a party to this Master Trust
                    Deed and that Supplementary Terms Notice.

          7.13 PAYMENTS TO TRANSFEREE

               Subject to this Master Trust Deed (including clause 32.1 of the
               Master Trust Deed), on the entry of a transferee of A$ Notes in
               the Register, the transferee shall become entitled to receive any
               payments then due or which may become due to the holder of the
               relevant A$ Notes (including whether or not the entitlement to
               payment wholly or partly arose or accrued prior to the transfer
               and the Trustee shall be discharged for any such payment made to
               the transferee).

          7.14 TRANSMISSION OF ENTITLEMENTS

               (a)  (ELECTION) Any person becoming entitled to an A$ Note as a
                    result of the death, mental incapacity or bankruptcy of an
                    A$ Noteholder may, on producing such evidence as the Trustee
                    requires of their entitlement, elect to be either registered
                    as the A$ Noteholder in respect of the relevant A$ Notes or
                    to transfer the relevant A$ Notes to a third party in the
                    manner specified in this clause.

               (b)  (METHOD OF ELECTION) If an entitled person elects to be
                    registered as the A$ Noteholder, the person shall deliver to
                    the Trustee a notice in writing to this effect signed by the
                    person. If the person elects to have another person
                    registered he or she shall execute a Note Transfer in
                    relation to the relevant A$ Notes in favour of that other
                    person. All the provisions of this Master Trust Deed and the
                    relevant Supplementary Terms Notice relating to the transfer
                    of A$ Notes and the registration of Note Transfers

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                    shall be applicable to any such notice or Note Transfer as
                    if the death, mental incapacity or bankruptcy of the A$
                    Noteholder had not occurred and the notice or Note Transfer
                    was a Note Transfer executed by the A$ Noteholder.

               (c)  (DISCHARGE) A person entitled to A$ Notes under this clause
                    shall be entitled to receive and may give a good discharge
                    for all moneys payable in respect of such A$ Notes but,
                    except as otherwise provided by this Master Trust Deed and
                    the relevant Supplementary Terms Notice, shall not be
                    entitled to any of the rights or privileges of an A$
                    Noteholder unless and until the person is entered in the
                    Register as the holder of those A$ Notes.

          7.15 MARKED NOTE TRANSFER

               (a)  (ENTITLEMENT TO MARKING) An A$ Noteholder may from time to
                    time request the Trustee to provide the A$ Noteholder with a
                    Marked Note Transfer.

               (b)  (MARKING) The A$ Noteholder shall deliver a Note Transfer to
                    the Trustee and the Trustee shall mark the Note Transfer in
                    such manner as agreed from time to time by the Trustee and
                    the Manager and issue the same to the A$ Noteholder.

               (c)  (TRUSTEE WILL NOT REGISTER TRANSFER) Until the expiry of 90
                    days (or any substitute period as the Trustee and Manager
                    agree from time to time and as advised to A$ Noteholders)
                    from the date on which the Note Transfer was marked, the
                    Trustee shall not register any transfer of A$ Notes relating
                    to the Marked Note Transfer otherwise than on that Marked
                    Note Transfer.

               (d)  (NO EXTENSION BY CLOSING OF REGISTER) The period referred to
                    in sub-paragraph (c) shall not be extended by the closing of
                    the Register for any purpose.

               (e)  (DELIVERY) A Marked Note Transfer shall be issued to an A$
                    Noteholder by personal delivery at the time the A$
                    Noteholder attends the offices of the Trustee (or such other
                    place nominated by the Trustee) for the marking of the Note
                    Transfer by the Trustee.

          7.16 RELIANCE ON DOCUMENTS

               The Trustee shall be entitled to accept and assume the
               authenticity and genuineness of any Note Transfer or other
               document produced to it and to assume that any Note Transfer or
               other document produced to it has been duly executed. The Trustee
               shall not be bound to enquire into the authenticity or
               genuineness of any Note Transfer or other document, nor shall it
               incur any liability for registering any Note Transfer which is
               subsequently discovered to be a forgery or otherwise defective,
               unless the Trustee had actual notice of such forgery or defect at
               the time of registration of such Note Transfer.

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          7.17 SPECIMEN SIGNATURES

               The Trustee may (but need not) require each A$ Noteholder to
               submit specimen signatures (and in the case of a corporation may
               require those signatures to be authenticated by the secretary or
               director of such A$ Noteholder) of persons authorised to execute
               Note Transfers on behalf of such A$ Noteholder and shall be
               entitled to assume (until notified to the contrary) that such
               authority has not been revoked.

          7.18 NOTES LODGED WITH AUSTRACLEAR

               If A$ Notes are lodged into the Austraclear System, the Trustee
               shall enter Austraclear in the Register as the holder of those A$
               Notes. While those A$ Notes remain in the Austraclear System:

               (a)  all payments and notices required of the Trustee and the
                    Manager in relation to those A$ Notes will be directed to
                    Austraclear; and

               (b)  all dealings (including transfers) and payments in relation
                    to those A$ Notes within the Austraclear System will be
                    governed by the Austraclear Regulations and need not comply
                    with this clause 7 to the extent of any inconsistency.

     (t)  CLAUSE 7A - NOTE ACKNOWLEDGEMENT

          For the purposes of the Trust a new clause 7A is inserted in the
          Master Trust Deed as follows:

               7A.  NOTE ACKNOWLEDGEMENT

               7A.1 ISSUE OF NOTE ACKNOWLEDGEMENT

                    When a person has been entered in the Register as the holder
                    of A$ Notes, as soon as practicable (and in any event no
                    later than 5 Business Days or such shorter period specified
                    in the relevant Supplementary Terms Notice or as otherwise
                    agreed by the Trustee with the person or the Manager)
                    thereafter, the Trustee shall issue a Note Acknowledgement
                    to that person in respect of those A$ Notes. If the person
                    has been entered into the Register under a Note Transfer and
                    the transferor continues to retain a holding of A$ Notes,
                    the Trustee shall, within the same period stated above,
                    issue to the transferor a Note Acknowledgement in respect of
                    that retained holding of A$ Notes. No certificates will be
                    issued in respect of A$ Notes.

               7A.2 NOTE ACKNOWLEDGEMENT NOT CERTIFICATE OF TITLE

                    A Note Acknowledgement shall not be a certificate of title
                    as to A$ Notes and the Register shall be the only conclusive
                    evidence of the ownership of A$ Notes and the entitlements
                    under them. A Note Acknowledgement cannot be pledged or
                    deposited as security nor can an A$ Note be transferred by
                    delivery of only a Note Acknowledgement.

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               7A.3 EXECUTION OF NOTE ACKNOWLEDGEMENT

                    Each Note Acknowledgement shall be signed on behalf of the
                    Trustee manually, or in facsimile by mechanical or
                    electronic means, by any Authorised Signatory of the
                    Trustee. If any Authorised Signatory of the Trustee whose
                    signature appears on a Note Acknowledgement dies or
                    otherwise ceases to be an Authorised Signatory before the
                    Note Acknowledgement has been issued, the Trustee may
                    nevertheless issue the Note Acknowledgement.

               7A.4 MORE THAN ONE NOTE ACKNOWLEDGEMENT

                    If an A$ Noteholder wishes to receive more than one Note
                    Acknowledgement it shall return its Note Acknowledgement to
                    the Trustee and at the same time request in writing the
                    issue of a specified number of separate Note
                    Acknowledgements. Subject to clause 4.5, the Trustee shall
                    then cancel the original Note Acknowledgement and issue, in
                    lieu, separate Note Acknowledgements. A fee prescribed by
                    the Trustee (not exceeding $10 for each Note
                    Acknowledgement) shall be paid by the A$ Noteholder to the
                    Trustee.

               7A.5 WORN OUT, DEFACED OR LOST NOTE ACKNOWLEDGEMENT

                    If any Note Acknowledgement is worn out or defaced then, on
                    production to the Trustee, the Trustee may cancel the same
                    and may issue a new Note Acknowledgement. If any Note
                    Acknowledgement is lost or destroyed then, on proof to the
                    satisfaction of the Trustee, and on such indemnity as the
                    Trustee may consider adequate having been given, a new Note
                    Acknowledgement shall be given to the person entitled to
                    such lost or destroyed Note Acknowledgement. An entry as to
                    the issue of the new Note Acknowledgement and of the
                    indemnity (if any) shall be made in the Register. A fee
                    prescribed by the Trustee (not exceeding $10) shall be paid
                    by the person requesting the new Note Acknowledgement to the
                    Trustee.

               7A.6 JOINT HOLDINGS

                    If a single parcel of A$ Notes is held by more than one
                    person, only the person whose name stands first in the
                    Register in relation to that parcel of A$ Notes shall be
                    entitled to:

                    (a)  be issued the relevant Note Acknowledgement and, if
                         applicable, a Marked Note Transfer;

                    (b)  be given any notices; and

                    (c)  be paid any moneys due in respect of such A$ Notes.

               7A.7 DELIVERY OF NOTE ACKNOWLEDGEMENT

                    A Note Acknowledgement may be sent to the relevant A$
                    Noteholder by mail or by personal delivery to the A$
                    Noteholder's address appearing in

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                    the Register and the Note Acknowledgement so sent shall be
                    at the risk of that A$ Noteholder.

     (u)  CLAUSE 8.5 - AUTHORISED INVESTMENT

          For the purposes of Clause 8.5 of the Master Trust Deed, but subject
          always to the right of substitution under clause 8, Authorised
          Investments shall not include those investments specified in
          paragraphs (a) and (c) of the definition of Authorised Investments in
          the Master Trust Deed, namely:

          (i)  Loans secured by Mortgages, those Mortgages, other Related
               Securities and Receivable Rights; and

          (ii) other Receivables, Receivable Securities and Receivable Rights
               approved by the Manager.

     (v)  CLAUSE 12.3(B) - SALE NOTICE

          For the purposes of clause 12.3(b) of the Master Trust Deed, a Sale
          Notice may be delivered to the Trustee by the Approved Seller on or at
          any time prior to the Expiry Time.

     (w)  CLAUSE 12.5(A)(III) - CONDITIONS PRECEDENT TO PURCHASE

          For the purposes of clause 12.5(a)(iii) of the Master Trust Deed, the
          following is a condition precedent to the giving of a Sale Notice:

          (i)  (CERTIFIED COPIES) Certified copies of the forms of each Mortgage
               Insurance Policy relating to the Purchased Receivables.

     (x)  CLAUSE 12.6(A)(VII) REPRESENTATIONS AND WARRANTIES

          For the purposes of clause 12.6(a)(vii) of the Master Trust Deed, the
          Approved Seller makes the following additional representations and
          warranties in relation to each Sale Notice.

          (i)  (ASSIGNABILITY) All consents required in relation to the
               assignment of the Receivables specified in the Sale Notice and
               the related Receivable Rights have been obtained. Those
               Receivables and Receivable Rights are assignable.

          (ii) (QUALITY OF TITLE) It is the sole, legal and beneficial owner of
               the Receivables specified in the Sale Notice and the related
               Receivable Rights. Those Receivables and the related Receivable
               Rights, together with the interest of the Approved Seller under
               the Relevant Documents, are owned by it free and clear of any
               Security Interest (other than any Security Interest arising
               solely as the result of any action taken by the Trustee in
               connection with the Trust).

          (iii) (ELIGIBLE RECEIVABLE) As at the relevant Cut-Off Date, each
               Receivable which is specified in the Sale Notice is an Eligible
               Receivable. In relation to any related Receivable Security that
               is required to be registered with any Government Agency and which
               is not registered at its Cut-Off Date, it will be registered.

          (iv) (RECEIVABLE SECURITIES) Each Receivable and Receivable Security
               which is specified in the Sale Notice and each Related Security
               is legally valid, binding and

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               enforceable against the relevant Obligor(s) in all material
               respects except to the extent that it is affected by laws
               relating to creditors rights generally, or doctrines of equity.

          (v)  (SET OFF) Once equitably assigned to the Trustee, no Receivable
               which is specified in the Sale Notice or related Receivable Right
               will be subject to any right of rescission, set off, counterclaim
               or similar defence.

          (vi) (COMPLIANCE WITH LAWS) At the time each Receivable and Receivable
               Security which is specified in the Sale Notice and each Related
               Security was entered into and up to and including the Closing
               Date, it complied in all material respects with applicable laws,
               including, without limitation, where the Consumer Credit
               Legislation applies, the Consumer Credit Legislation and the
               performance by the Approved Seller of its obligations in respect
               of each such Receivable, Receivable Security and Related Security
               (including without limitation, its variation, discharge, release,
               administration, servicing and enforcement) up to and including
               the Closing Date complied in all material respects with
               applicable laws including, without limitation, where the Consumer
               Credit Legislation applied, the Consumer Credit Legislation.

          (vii) (OWNERSHIP) In relation to each Receivable Security which is
               specified in the Sale Notice, the relevant Obligor(s) is or are
               the sole legal owner of the relevant Mortgaged Property and
               registered as the sole proprietor(s) of the relevant Mortgaged
               Property.

          (viii) (INSURANCE) Each Receivable which is specified in the Sale
               Notice is the subject of a Mortgage Insurance Policy from a
               Mortgage Insurer for the scheduled term of that Receivable. The
               sale of each such Receivable to the Trustee is not contrary to
               the relevant Mortgage Insurance Policy. The Approved Seller has
               not done or omitted to do anything which might prejudicially
               affect or limit its rights or the rights of the Trustee under or
               in respect of a Mortgage Insurance Policy (including the payment
               of any premiums due under that Mortgage Insurance Policy) to the
               extent that those rights relate to that Receivable or the related
               Receivable Rights. On transfer to the Trustee of equitable title
               to a Purchased Receivable:

               (A)  the Trustee will have the benefit of the relevant Mortgage
                    Insurance Policy for that Receivable; and

               (B)  the Approved Seller will procure that the Trustee receives
                    evidence of each Mortgage Insurer's acknowledgement of the
                    transfer.

          (ix) (SOLVENCY OF MORTGAGE INSURER) The Approved Seller does not have
               actual notice that any Mortgage Insurer under any Mortgage
               Insurance Policy in relation to a Receivable is insolvent or will
               be unable to pay a valid claim.

          (x)  (SOLVENCY OF OTHER INSURERS) The officers of the Approved Seller
               who have responsibility for the transactions contemplated by the
               Transaction Documents do not have actual notice that any insurer
               under any insurance policy (other than a

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               Mortgage Insurer under any Mortgage Insurance Policy) in relation
               to a Receivable is insolvent or will be unable to pay a valid
               claim.

          (xi) (SELECTION PROCESS) There is no fraud, dishonesty, material
               misrepresentation or negligence on the part of the Approved
               Seller in connection with the selection and offer to the Trustee
               of any Receivables or related Receivable Securities which is
               specified in the Sale Notice.

          (xii) (NO VOID TRANSACTIONS) The assignment of the Receivables which
               are specified in the Sale Notice and Receivable Rights will not
               be held by a court to be an undervalue transfer, a fraudulent
               conveyance, or a voidable preference under any law relating to
               insolvency.

          (xiii) (SECURITY INTEREST) The sale, transfer and assignment of the
               Approved Seller's interest in the Receivables which are specified
               in the Sale Notice and the related Receivable Rights, will not
               constitute a breach of any Relevant Document or the Approved
               Seller's obligations or a default by the Approved Seller under
               any Security Interest.

          (xiv) (RELEVANT DOCUMENTS) The Approved Seller holds in its possession
               or control all Relevant Documents that relate to the Receivables
               and the related Receivable Securities which are specified in the
               Sale Notice necessary to register and enforce the provisions of
               and the security created by the relevant Receivable Securities.

          (xv) (SOLVENCY) The Approved Seller is solvent, is able to pay its
               debts as and when they become due and payable and has no notice
               of, nor taken any steps in relation to, any application or order
               for its winding up or the appointment of a receiver or liquidator
               to it or any of its assets.

          (xvi) (NO RESCISSION, ETC) As at the Cut-Off Date, none of the
               Receivables and none of the Receivable Securities which are
               specified in the Sale Notice were satisfied, cancelled,
               discharged or rescinded and the Mortgaged Property relating to
               each relevant Receivable and Receivable Security had not been
               released from the security of the relevant Receivable Securities.

          (xvii) (INTEREST RATE) Except as specified in a Receivable Agreement,
               a Receivable Security or the Sale Notice, and subject to
               applicable laws, the interest rate for each such Receivable is
               not subject to any limitation, no consent, additional memoranda
               or other writing is required from the relevant Obligor to give
               effect to a change in that rate and any change in that rate will
               be effective on notice being given to that Obligor in accordance
               with the terms of the relevant Receivable or Receivable Security.

          (xviii) (COMPLIANCE WITH PROCEDURES) At the time each Receivable and
               each Receivable Security which is specified in the Sale Notice
               and each Related Security was entered into it complied in all
               material respects with the Approved Seller's underwriting and
               operations procedures, as agreed with the Manager.

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          (xix) (GOOD FAITH) Each Receivable and Receivable Security which is
               specified in the Sale Notice and each Related Security was
               entered into by the Approved Seller in good faith.

          (xx) (ORDINARY COURSE OF BUSINESS) At the time each Receivable and
               each Receivable Security which is specified in the Sale Notice
               and each Related Security was entered into, it was not purchased
               by the Approved Seller but was originated in the ordinary course
               of the Approved Seller's business.

          (xxi) (FIRST RANKING SECURITY) In respect of each Receivable and each
               Receivable Security which is specified in the Sale Notice and
               each Related Security, the Approved Seller has taken all
               reasonably necessary steps to ensure that each related Mortgage
               complies with the applicable legal requirements to be a first
               ranking Mortgage secured over land, subject to registration in
               due course.

          (xxii) (NO NOTICE OF BANKRUPTCY OR WINDING UP) At the time each
               Receivable and each Receivable Security which is specified in the
               Sale Notice and each Related Security was entered into at any
               time prior to the Closing Date, the Approved Seller had not
               received any notice of any insolvency, bankruptcy or liquidation
               of the Obligor(s) or any guarantors or security providers (except
               that if a Receivable is in Arrears but complies with the
               Eligibility Criteria, the fact that it is in Arrears is not in
               and of itself notice of insolvency) or any notice that any such
               person did not have the legal capacity to enter into the relevant
               Mortgage.

          (xxiii) (NO WAIVER, ETC) As at the Cut-Off Date, none of the
               Receivables and none of the Receivable Securities which is
               specified in the Sale Notice and no Related Security had been
               waived or altered, except in writing and as part of the Relevant
               Documents.

          (xxiv) (INFORMATION ON RECEIVABLES) All information provided by the
               Approved Seller to the Trustee in connection with the
               Receivables, the Receivable Securities and the Related Securities
               was, when given, true and accurate in all material respects and
               not misleading or deceptive and did not omit to state a material
               fact necessary in order to make the statements therein in light
               of the circumstances in which they were made not misleading or
               deceptive.

          (xxv) (NO KNOWLEDGE OF ADVERSE EVENT) As at the Cut-Off Date, the
               Approved Seller was not aware of any circumstance or event that
               may materially and adversely affect:

               (A)  the value or enforceability of any Receivable, Receivable
                    Security or Related Security; or

               (B)  the ability of the Approved Seller to perform its
                    obligations under the Transaction Documents.

          (xxvi) (FAIR CONSIDERATION) The Approved Seller regards the
               consideration paid for the Receivables specified in the Sale
               Notice as fair and equals the outstanding principal of the
               Receivables on the Closing Date (plus or minus $1,000).

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          (xxvii) (NO BREACH OF OBLIGATIONS) The Approved Seller is not in
               breach of any obligation or agreement which has had or may have a
               Material Adverse Effect.

          (xxviii) (DEPOSIT ACCOUNT) If the Approved Seller has required an
               Obligor to establish a deposit account with it in relation to a
               Receivable, the Approved Seller has done so for administrative
               convenience only.

          (xxix) (WAIVER OF SET-OFF) The Approved Seller's standard form of
               Receivable Agreement includes a clause to the effect that the
               relevant Obligor waives all rights of set-off as between the
               Obligor and the Approved Seller.

          (xxx) (AUSTRALIAN DOLLARS) Each Receivable is, at the Closing Date,
               denominated and payable only in Australian dollars in Australia.

          (xxxi) (STAMP DUTY) The Approved Seller will pay all applicable stamp
               duties imposed by Queensland as a result of the initial equitable
               assignment by the Approved Seller to the Trustee of the
               Receivables specified in the Sales Notice.

     (y)  CLAUSE 12.6(D)(II) - OFFER AND ACCEPTANCE

          Clause 12.6(d)(ii) of the Master Trust Deed is amended by:

          (i)  deleting "to the satisfaction of the Manager and the Trustee" and
               inserting in place of those words "(if capable of remedy to the
               satisfaction of the Manager and the Trustee)";

          (ii) replacing "." at the end of sub-clause (G) with "; and"; and

          (iii) inserting a new sub-clause (H) as follows:

               (H)  the Approved Seller shall indemnify the Trustee from and
                    against any and all damages, losses, claims, liabilities and
                    related costs and expenses including legal costs and
                    expenses on a full indemnity basis that the Trustee may
                    sustain or incur under the Consumer Credit Legislation as a
                    direct or indirect consequence of a breach of the Approved
                    Seller's representation and warranty under clause 6.2(y)(vi)
                    of the Supplementary Terms Notice, together with any
                    relevant break costs for which the Trustee is liable in
                    relation to the prepayment of any Hedge Agreement for the
                    Trust.

     (z)  CLAUSE 12.6(D)(V) - LIMIT ON DAMAGES

          Clause 12.6(d)(v) of the Master Trust Deed is amended by adding the
          following after the word "damages" in the last line:

               except for a breach of the Approved Seller's representation and
               warranty under clause 6.2(y)(vi) of the Supplementary Terms
               Notice where, in addition, the Approved Seller will indemnify the
               Trustee from and against any and all damages, losses, claims,
               liabilities and related costs and expenses including legal costs
               and expenses on a full indemnity basis the Trustee may sustain or
               incur under the Consumer Credit Legislation as a direct or
               indirect consequence of that breach.

     (aa) CLAUSE 12.7(A)(I) - APPROVED SELLER UNDERTAKINGS

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          For the purposes of clause 12.7(a)(i) of the Master Trust Deed, the
          Approved Seller provides the following further undertakings:

          (i)  (MORTGAGE INSURANCE POLICY REQUIREMENTS) it will do, or refrain
               from doing, at the direction of the Trustee or the Manager, such
               acts and things as may be required under the relevant Mortgage
               Insurance Policy which may only be done or not done (as the case
               may be) by a credit provider for the purposes of the Consumer
               Credit Legislation;

          (ii) (OFFSET ARRANGEMENTS) it will, following the occurrence of a
               Title Perfection Event, ensure that any Offset Arrangement in
               respect of a Loan is terminated on or prior to the legal
               assignment of that Loan to the Trustee under clause 12.9(b).

     (bb) CLAUSE 12.8(A)(IV)(B) - PRIORITY

          For the purposes of clause 12.8(a)(iv)(B) of the Master Trust Deed,
          replace the word "Receivable" in the second line with "Purchased
          Receivable".

     (cc) CLAUSE 14.9 - ACCOUNTING FOR MONEYS RECEIVED

          Clause 14.9(a) of the Master Trust Deed shall be replaced by the
          following:

               The Manager will pay to, or to an account of the Trustee, within
               2 Business Days of receipt, all moneys coming into its hands
               belonging to the Trust or payable to the Trust.

     (dd) CLAUSE 14.10 - REUTERS

          The Manager may prepare and arrange for the publication by Reuters (or
          another customary electronic medium) of summary pool performance data
          for the Trust in a format similar to that used by other
          mortgage-backed securities or asset-backed securities (as the case may
          be) in the Australian market. If it does, the Manager shall provide a
          copy of the report as soon as practicable after preparation to the
          Designated Rating Agencies. The report shall include a statement
          agreed between the Manager and the Trustee summarising the extent of
          the Trustee's liability under the Trust.

     (ee) CLAUSE 14.20 - ADDITIONAL COVENANTS BY MANAGER

          For the purposes of clause 14.20 of the Master Trust Deed, the Manager
          shall also:

          (i)  (FILING) make all filings which the Manager is actually aware are
               required in connection with the Trust or the Assets of the Trust
               with any Governmental Agency in any jurisdiction;

          (ii) (COMPLY WITH OBLIGATIONS AND LAWS) promptly comply with all other
               duties and obligations imposed on the Manager by the Transaction
               Documents in relation to the Trust and comply with all relevant
               material laws in the relevant jurisdiction in carrying out such
               duties and obligations;

          (iii) (NOTIFICATION TO DESIGNATED RATING AGENCIES) notify the
               Designated Rating Agencies that a Class of Notes has been fully
               and finally redeemed when the aggregate Invested Amount of that
               Class of Notes has been reduced to zero; and

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          (iv) (STEP-UP MARGIN) if a Step-Up Margin applies to any Note under
               clause 4.9, not direct the Trustee to enter into or extend a
               Transaction under an Interest Hedge (as defined in the relevant
               Interest Hedge) unless the Manager is of the opinion that the
               amounts payable by the provider of that Interest Hedge to the
               Trustee in relation to the Transaction are calculated with
               reference to that Step-Up Margin.

     (ff) CLAUSE 14.22

          A new clause 14.22 is inserted in the Master Trust Deed as follows:

          14.22 PROVISION OF HEDGING

               Notwithstanding any other provision of this clause 14, the Trust
               Manager may enter into a Hedge Agreement with the Trustee, as a
               counterparty, in relation to any Trust.

     (gg) CLAUSE 16.1(C) - RETIREMENT BY MANAGER

          Clause 16.1(c) of the Master Trust Deed shall be amended by replacing
          the words "fraud, negligence or wilful default" in the second last and
          last lines with the words "breach of contract".

     (hh) CLAUSE 16.4 - VOLUNTARY RETIREMENT

          For the purposes of this Trust, clause 16.4 of the Master Trust Deed
          is amended by deleting the number "120" and replacing it with the
          number "90".

     (ii) CLAUSE 16.6 - TRUSTEE TO ACT AS MANAGER IF NO SUCCESSOR APPOINTED

          Clause 16.6 of the Master Trust Deed shall be replaced with the
          following:

          (a)  When a notice is given under clause 16.4 of this Master Trust
               Deed, the Trustee shall be entitled to appoint some other
               corporation to be the Manager of the Trust on any terms the
               Trustee sees fit (including the amount of Manager's Fee that
               would be payable to the replacement Manager at market rates)
               provided that the terms of that appointment will not have an
               adverse affect on the ratings of the Notes.

          (b)  Subject to paragraph (c) below, until a replacement Manager is
               appointed under paragraph (a) above, the Manager must continue to
               act as Manager and be entitled to the Manager's Fee while so
               acting.

          (c)  If a replacement Manager is not appointed at the end of the
               period of notice specified in a notice given under clause 16.4 of
               this Master Trust Deed:

               (i)  the Trustee must itself perform the obligations and
                    functions which this Deed contemplates being performed by
                    the Manager, until a successor Manager is appointed in
                    accordance with this Deed and be entitled to the Manager's
                    Fee while so acting; and

               (ii) the resignation of the Manager will become effective.

     (jj) CLAUSE 17.2

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          For the purposes of this Trust clause 17.2 of the Master Trust Deed,
          the following new paragraph (z) is inserted and the existing paragraph
          (z) becomes paragraph (aa).

               (CLEARING SYSTEMS) to lodge Notes, or arrange for Notes to be
               lodged, with DTC, or a depository for DTC; and

     (kk) CLAUSE 18.3 - TO ACT HONESTLY, DILIGENTLY AND PRUDENTLY

          Clause 18.3 of the Master Trust Deed is amended by:

          (i)  replacing "." at the end of paragraph (j) with "; and"; and

          (ii) inserting a new sub-clause (k) as follows:

                    (REMOVAL OF THE TRUSTEE'S AGENTS OR DELEGATES) as soon as
                    practicable in any event within 45 days' notice from the
                    Manager to do so, remove any agent or delegate of the
                    Trustee that breaches any obligation or duty imposed on the
                    Trustee under this Master Trust Deed or any other
                    Transaction Document in relation to the Trust provided that
                    the Manager reasonably believes such breach will have a
                    Material Adverse Effect.

     (ll) CLAUSE 21.1 - OPENING OF BANK ACCOUNTS

          For the purposes of this Trust, clause 21.1(d) of the Master Trust
          Deed is amended by:

          (i)  adding the words "other than a Collection Account" after the
               words "if an Account" in line 1 of that clause; and

          (ii) adding the following new clause 21.1(e):

               (e)  (CHANGE BANK ACCOUNTS) If a Collection Account is held with
                    a Bank which ceases to be an Approved Bank then the Manager
                    must direct the Trustee to, and the Trustee shall, as soon
                    as practicable, and in any event, within 2 days of receipt
                    of actual notice of that cessation;

                    (i)  commence opening an account with an Approved Bank (the
                         NEW COLLECTION ACCOUNT); and

                    (ii) commence transferring funds standing to the credit of
                         the Collection Account to the New Collection Account,

                    and as soon as practicable (and in any event within 5
                    Business Days of receipt of actual notice of that cessation)
                    ensure that all funds standing to the credit of the
                    Collection Account have been transferred to the New
                    Collection Account.

               (f)  The Servicer shall do all things necessary to assist the
                    Manager and the Trustee to comply with their obligations
                    under this clause 21.1.

     (mm) CLAUSE 23.3 - ACCOUNTS TO BE KEPT IN ACCORDANCE WITH APPROVED
          ACCOUNTING STANDARDS

          For the purposes of the Trust, clause 23.3 of the Master Trust Deed is
          deleted and a new clause 23.3 inserted as follows:

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          "23.3 MANNER IN WHICH ACCOUNTS TO BE KEPT

               The accounting records of each Trust shall be maintained in a
               manner which reflects the Trust Income determined under clause
               24.2 and which will enable the Accounts of the Trust to be
               prepared and audited in accordance with the Transaction
               Documents."

     (nn) CLAUSE 23.10 - REQUEST FOR ACCOUNTS

          A new clause 23.10 of the Master Trust Deed is inserted as follows:

          "23.10 - REQUEST FOR ACCOUNTS

                    Without limiting clause 24.2, if and for so long as any
                    Class of Notes is listed on the Australian Stock Exchange, a
                    Noteholder holding Notes of that Class may, after the end of
                    any Financial Year of the relevant Trust, request the
                    Manager in writing to prepare, and to provide to that
                    Noteholder, accounts for that Trust prepared in accordance
                    with Approved Accounting Standards. Any such accounts will
                    not be the formal accounts of that Trust, and shall not
                    affect any accounts prepared in accordance with clause
                    24.2."

     (oo) CLAUSE 23.9 - NO RESPONSIBILITY FOR SERVICER

          Clause 23.9 of the Master Trust Deed shall be amended by replacing the
          words "the fraud, negligence or wilful default of" in the second last
          line with the words "a breach of contract by."

     (pp) CLAUSE 24 - INCOME ENTITLEMENTS AND PAYMENTS

          For the purposes of this Trust clause 24 of the Master Trust Deed is
          deleted and a new clause 24 inserted as follows:

          24.  INCOME ENTITLEMENTS AND PAYMENTS

          24.1 CASHFLOW ALLOCATION METHODOLOGY

               Collections in relation to a Trust and other amounts credited to
               the Collection Account for that Trust will be allocated by the
               Manager on behalf of the Trustee, and paid by the Trustee, as
               directed by the Manager, in accordance with the Supplementary
               Terms Notice for that Trust.

          24.2 INCOME OF THE TRUST

               For each Financial Year in respect of a Trust the Manager will
               ascertain the following on behalf of the Trustee:

               (a)  the net income of that Trust in accordance with section
                    95(1) of the Taxation Act (the TAX INCOME); and

               (b)  the income of that Trust in accordance with the laws
                    applicable to the administration of that Trust (the TRUST
                    INCOME).

               In calculating the Trust Income, the Manager shall:

               (A)  if no determination has been made under paragraph (B) below,
                    recognise interest income, interest expense, swap payments
                    and swap receipts on an

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                    accruals basis and recognise other items of income and
                    expense on either an accruals basis or a cash basis, in each
                    case disregarding unrealised gains and losses;

               (B)  if the Manager and the Trustee so determine in writing,
                    apply such accounting policies as the Manager and the
                    Trustee agree provided that such policies, if applied, would
                    not lead to the downgrade or withdrawal of the rating of any
                    of the Notes or cause a breach of any reporting requirements
                    of the Securities and Exchange Commission, the Australian
                    Stock Exchange or any other registered stock exchange on
                    which any of the Notes are listed (as applicable).

          24.3 INCOME ENTITLEMENT

               Notwithstanding anything to the contrary contained in this deed,
               but subject to clause 24.4:

               (a)  (PRESENT ENTITLEMENT) the Residual Income Beneficiaries
                    shall, as at the end of each Financial Year for that Trust,
                    have an absolute vested interest in, and be presently
                    entitled to, the income of that Trust; and

               (b)  (APPLICATION OF INCOME) unless the Trustee otherwise
                    determines, having regard to any relevant taxation or other
                    implications for the Trustee (disregarding for these
                    purposes any possible operation of clause 24.4) or both for
                    any Financial Year for that Trust, for the purposes of
                    paying, applying, distributing, setting aside or allocating
                    any income for the benefit of the Residual Income
                    Beneficiaries in accordance with the terms of this deed in
                    respect of that Financial Year, the income that is to be so
                    paid, applied, distributed, set aside or allocated shall be
                    whichever is the greater of the Tax Income or the Trust
                    Income for that Financial Year.

          24.4 DISTRIBUTION OF EXCESS TAX INCOME

               For the avoidance of doubt, in the event that the Tax Income
               exceeds the income of the Trust for the purposes of clause
               24.3(a) for a Trust in any Financial Year for that Trust then,
               notwithstanding anything to the contrary in this deed, provided
               there is an amount to which clause 24.3(a) applies, the Manager
               must direct the Trustee to, and the Trustee shall, so far as
               possible, ensure that such excess is allocated to the Residual
               Income Beneficiaries of that Trust for that Financial Year and
               shall take such action as is necessary to give effect to this
               clause.

          24.5 PAYMENTS TO BENEFICIARIES

               (a)  (DISTRIBUTABLE INCOME DUE AS AT CLOSE OF FINANCIAL YEAR) The
                    income of a Trust for a Financial Year (to the extent not
                    previously distributed) shall, subject to clause 24.7,
                    constitute a debt due as at the end of that Financial Year
                    by the Trustee to each Residual Income Beneficiary of that
                    Trust who is entitled to the income under clause 24.3(a) and
                    shall, subject to clause 24.7, be payable under clause
                    24.5(b).

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               (b)  (PAYMENT) Subject to clause 24.7, the Trustee may make
                    interim distributions of the income of a Trust to the
                    relevant Residual Income Beneficiary in accordance with the
                    terms of the Supplementary Terms Notice for that Trust and
                    shall as soon as practicable after the end of a Financial
                    Year transfer an amount representing the income of that
                    Trust (to the extent not previously distributed) from the
                    central bank account of that Trust to the bank accounts of
                    each Residual Income Beneficiary of that Trust as directed
                    by the relevant Beneficiary.

               (c)  (RESIDUAL CAPITAL) On the termination of a Trust, the
                    surplus capital of that Trust remaining after satisfaction
                    by the Trustee of all its obligations in respect of that
                    Trust shall be paid to the Residual Income Beneficiaries of
                    that Trust in accordance with the terms of the Supplementary
                    Terms Notice for that Trust.

          24.6 APPLICATION OF TRUST INCOME

               (a)  If by the last day of any Financial Year for a Trust (the
                    LAST DAY) the Trustee has not effectively dealt with the
                    whole of the income of that Trust for that Financial Year by
                    paying, applying or distributing it, or by setting it aside,
                    then the income not so paid, applied, distributed or set
                    aside shall be deemed to have been irrevocably applied and
                    set aside on the Last Day by the Trustee on behalf of, and
                    shall be held by the Trustee on and from the Last Day upon
                    trust absolutely for, the Residual Income Beneficiaries of
                    that Trust in accordance with their entitlement to income
                    under this deed (including, for these purposes, the
                    allocation of excess Tax Income (if any) pursuant to clause
                    24.4).

               (b)  If the Trustee fails to effectively allocate any excess to
                    the Residual Income Beneficiaries in accordance with clause
                    24.4, then such excess shall vest or be deemed to be vested
                    in those Residual Income Beneficiaries.

               (c)  For the purposes of this clause 24.6 references to income of
                    that Trust for any Financial Year shall be to the greater of
                    the Tax Income or the Trust Income for that Financial Year.

          24.7 SUBORDINATION OF RESIDUAL INCOME BENEFICIARY ENTITLEMENTS

               (a)  No moneys may be paid out of a Trust during a Financial Year
                    to Residual Income Beneficiaries under clause 24.5, whilst
                    there is any amount due, but unpaid, which is in accordance
                    with clause 24.1 to be paid in priority to those amounts and
                    before the Trustee is satisfied, after consulting with the
                    Manager, that sufficient allowance has been made for those
                    priority amounts in relation to that Trust, accruing during
                    that Financial Year. To the extent that there is an amount
                    payable under clause 24.1 which is to be paid in priority to
                    the amounts payable to the Residual Income Beneficiaries,
                    those Residual Income Beneficiaries

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                    direct the Trustee to meet the amount payable under clause
                    24.1 as an application of their entitlement to the income of
                    that Trust.

               (b)  Notwithstanding paragraph (a) of this clause, once an amount
                    is paid out of a Trust to the Residual Income Beneficiaries
                    during a Financial Year, that amount may not be recovered
                    from those Residual Income Beneficiaries for any reason or
                    by any person except to the extent that the amount was paid
                    in error or as otherwise required by the relevant
                    Supplementary Terms Notice.

          24.8 INSUFFICIENT MONEYS

               If after the application of the provisions of clauses 24.1 and
               24.3 there is insufficient money available to the Trustee in
               respect of a Trust to pay the full amount due to Noteholders for
               that Trust, the deficiency shall, subject to the Supplementary
               Terms Notice for the Notes or any Class of Notes issued in
               relation to that Trust, be borne by the Noteholders in the manner
               set out in the relevant Supplementary Terms Notice.

          24.9 MANAGER TO ENSURE COMPLIANCE BY TRUSTEE

               Without limiting its other obligations under this deed, the
               Manager, in exercising its powers and carrying out its duties in
               accordance with this deed, must, to the extent possible, ensure
               that the Trustee complies with its obligations under clauses
               24.3(b) and 24.4.

     (qq) CLAUSE 28 - ASSET REGISTER

          For the purposes of this Trust clause 28 of the Master Trust Deed is
          deleted and a new clause 28 inserted as follows:

          28.  THE REGISTER

               28.1 DETAILS TO BE KEPT ON REGISTER

                    The Trustee shall keep or cause to be kept a register with
                    respect to the Trust, on which shall be entered:

                    (a)  the following information relating to the Trust:

                         (i)  (NAME) the name of the Trust;

                         (ii) (CREATION) the date of the creation of the Trust;

                    (b)  the following information relating to each A$ Note
                         issued in relation to the Trust:

                         (iii) (CLASS) the Class of that A$ Note;

                         (iv) (NOTE ISSUE DATES) its Note Issue Date;

                         (v)  (INITIAL INVESTED AMOUNT) the total Initial
                              Invested Amount of all A$ Notes of the same Class
                              and the total Initial Invested Amount of all A$
                              Notes;

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                         (vi) (INVESTED AMOUNT) its Invested Amount from time to
                              time;

                         (vii) (STATED AMOUNT) its Stated Amount from time to
                              time;

                         (viii) (SUPPLEMENTARY TERMS) details of any
                              supplementary terms applicable to it;

                         (ix) (DATE OF ENTRY) the date on which a person was
                              entered as the holder of that A$ Note;

                         (x)  (DATE OF CESSATION) the date on which a person
                              ceased to be a holder of that A$ Note;

                         (xi) (DETAILS) where applicable, Payment Dates,
                              Principal Amortisation Dates, Maturity Dates and
                              Margin on that A$ Note; and

                         (xii) (PAYMENTS) a record of each payment made in
                              respect of that A$ Note, and

                    (c)  the following information relating to each A$
                         Noteholder:

                         (xiii) (DETAILS OF NOTEHOLDERS) that A$ Noteholder's
                              name and address;

                         (xiv) (NUMBER OF A$ NOTES) the number of A$ Notes in
                              each Class held by that A$ Noteholder;

                         (A)  (NOTE ACKNOWLEDGEMENT) the serial number of each
                              Note Acknowledgement issued to that A$ Noteholder
                              and the number and Class of the A$ Notes to which
                              that Note Acknowledgement relates;

                         (B)  (ACCOUNT) the account to which any payments due to
                              that A$ Noteholder are to be made (if applicable);

                         (C)  (TAX FILE NUMBER) a record of whether the Trustee
                              has or has not received the tax file number (TFN),
                              ABN or reason for TFN exemption, in respect of
                              that A$ Noteholder; and

                    (d)  (ADDITIONAL INFORMATION) such other information as:

                         (i)  is required by the Supplementary Terms Notice;

                         (ii) the Trustee considers necessary or desirable; or

                         (iii) the Manager reasonably requires.

               28.2 ASSET REGISTER

                    The Trustee shall keep or cause to be kept an asset register
                    with respect to the Trust, in which shall be entered the
                    Authorised Investments and other Assets of the Trust (other
                    than Purchased Receivables and the

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                    related Receivable Rights) entered into the relevant asset
                    register on an individual basis.

               28.3 PLACE OF KEEPING REGISTER, COPIES AND ACCESS

                    The Register shall be:

                    (a)  (PLACE KEPT) kept at the Trustee's principal office in
                         Sydney or at such place as the Trustee and the Manager
                         may agree;

                    (b)  (ACCESS TO MANAGER AND AUDITOR) open to the Manager and
                         the Auditor of the Trust to which it relates to inspect
                         during normal business hours;

                    (c)  (INSPECTION BY A$ NOTEHOLDERS) open for inspection by
                         A$ Noteholders during normal business hours but only in
                         respect of information relating to that A$ Noteholder
                         or the Class of A$ Notes in respect of which that A$
                         Noteholder is a Noteholder; and

                    (d)  (NOT FOR COPYING) unavailable to be copied by any
                         person (other than the Manager) except in compliance
                         with such terms and conditions (if any) as the Manager
                         and Trustee in their absolute discretion nominate from
                         time to time.

               28.4 DETAILS ON REGISTER CONCLUSIVE

                    (a)  (RELIANCE ON REGISTER) The Trustee shall be entitled to
                         rely on the Register in clause 28.1 as being a correct,
                         complete and conclusive record of the matters set out
                         in it at any time and whether or not the information
                         shown in the Register is inconsistent with any other
                         document, matter or thing.

                    (b)  (NO TRUSTS ETC) The Trustee shall not be obliged to
                         enter on the Register notice of any trust, Security
                         Interest or other interest whatsoever in respect of any
                         Note and the Trustee shall be entitled to recognise
                         person named in the Register as the A$ Noteholder and
                         the absolute owner of relevant A$ Notes and the Trustee
                         shall not be bound or affected by any trust affecting
                         the ownership of any A$ Note unless ordered by a court
                         or required by statute.

                    (c)  (REGISTER NOT TO BE SIGNED) The Trustee shall ensure
                         that it does not sign or otherwise execute any entry in
                         a Register.

               28.5 CLOSING OF REGISTER

                    The Trustee may:

                    (a)  without prior notice to any Noteholder close the
                         Register established under clause 28.1:

                         (i)  in relation to all A$ Notes, each period from the
                              close of business (Sydney time) on the Business
                              Day

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                              preceding each Payment Date in respect of such A$
                              Notes to close of business on that Payment Date;
                              or

                         (ii) when required for the Auditor to conduct any audit
                              in relation to the Trust; or

                    (b)  with prior notice to each A$ Noteholder, close the
                         Register for other periods not exceeding 30 days (or,
                         subject to the Corporations Act 2001 (Cth), such other
                         period of time as agreed between the Trustee and the
                         Manager, with the approval of an Extraordinary
                         Resolution of the relevant Class of A$ Noteholders), in
                         aggregate, in any calendar year.

               28.6 ALTERATION OF DETAILS ON REGISTER

                    On the Trustee being notified of any change of name or
                    address or payment or other details of any A$ Noteholder by
                    that A$ Noteholder, the Trustee shall alter the Register
                    accordingly, as soon as reasonably practicable (and in any
                    event within 5 Business Days of receipt of that notice).

               28.7 CERTIFICATION OF REGISTER

                    If:

                    (a)  an entry is omitted from the Register;

                    (b)  an entry is made in the Register otherwise than in
                         accordance with the Master Trust Deed or this
                         Supplementary Terms Notice;

                    (c)  an entry wrongly exists in the Register;

                    (d)  there is an error, omission, misdescription or defect
                         in any entry in the Register; or

                    (e)  default is made or unnecessary delay takes place in
                         entering in the Register that any person has ceased to
                         be the holder of any A$ Notes,

                    the Trustee shall rectify the same upon becoming aware of
                    it.

               28.8 CORRECTNESS OF REGISTER

                    Neither the Manager nor the Trustee shall be liable for any
                    mistake in the Register or in any purported copy except to
                    the extent that the mistake is attributable to its fraud,
                    negligence or breach of trust.

               28.9 MANAGER MUST PROVIDE INFORMATION

                    The Manager must provide the Trustee and any person
                    appointed in accordance with clause 28.10 with such
                    information as the Trustee or that other person may
                    reasonably require to maintain the Register.

               28.10 THIRD PARTY REGISTRAR

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                    The Trustee may cause the Register to be maintained by a
                    third party on its behalf and require that person to
                    discharge the Trustee's obligations under the Master Trust
                    Deed and this Supplementary Terms Notice in relation to the
                    Register.

     (rr) CLAUSE 29 - MEETINGS OF NOTEHOLDERS

          For the purposes of the Trust, clause 29 of the Master Trust Deed is
          deleted and a new clause 29 inserted as follows:

               29.1 CLASS A-1 NOTEHOLDERS

                    (a)  Any proposal requiring the consent of Class A-1
                         Noteholders will be determined in accordance with the
                         Note Trust Deed.

                    (b)  The provisions of this clause 29, other than this
                         clause 29.1, shall not apply to the Class A-1
                         Noteholders or Class A-1 Notes.

               29.2 CONVENING OF MEETINGS BY TRUSTEE AND MANAGER

                    (a)  The Trustee or the Manager may at any time convene a
                         meeting of the A$ Noteholders or of a Class or Classes
                         of A$ Noteholders.

                    (b)  A$ Noteholders, who together hold A$ Notes with an
                         aggregate Invested Amount of not less than 20% of the
                         total Invested Amounts of all A$ Notes in the relevant
                         Class or Classes or Notes, may at any time convene a
                         meeting of the relevant Class or Classes of A$
                         Noteholders (as the case may be).

               29.3 NOTICE OF MEETINGS

                    (a)  (PERIOD OF NOTICE) Subject to clause 29.3(b) at least 7
                         days' notice (inclusive of the day on which the notice
                         is given and of the day on which the meeting is held)
                         of a meeting of a Class or Classes of A$ Noteholders
                         (as the case may be) shall be given to all A$
                         Noteholders in the relevant Class or Classes of A$
                         Noteholders.

                    (b)  (SHORT NOTICE) Notwithstanding clause 29.3(a), if it is
                         so agreed by a majority in number of the Class or
                         Classes of A$ Noteholders (as the case may be) having
                         the right to attend and vote at a meeting, being a
                         majority that together hold at least 95% of the then
                         outstanding A$ Notes in the relevant Class or Classes
                         of A$ Notes, a resolution may be proposed and passed at
                         a meeting of which less than 7 days' notice has been
                         given.

                    (c)  (FAILURE TO GIVE NOTICE) The accidental omission to
                         give notice to or the non-receipt of notice by a A$
                         Noteholder shall not invalidate the proceedings at any
                         meeting.

                    (d)  (COPIES) A copy of a notice convening a meeting shall
                         be given by the Trustee or the Manager (whichever is
                         convening the

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                         meeting) to the other, and also to the Residual Income
                         Beneficiaries and the Designated Rating Agencies.
                         Failure to give such a notice in accordance with this
                         clause shall invalidate the meeting unless the party
                         who has not received the notice waives the
                         invalidation.

                    (e)  (METHOD OF GIVING NOTICE) Notice of a meeting shall be
                         given in the manner provided in this deed.

                    (f)  (CONTENTS OF A NOTICE) Notice of a meeting of any Class
                         or Classes of A$ Noteholders shall specify:

                         (i)  (TIME ETC) the day, time and place of the proposed
                              meeting;

                         (ii) (AGENDA) the agenda of the business to be
                              transacted at the meeting;

                         (iii) (PROPOSED RESOLUTION) the terms of any proposed
                              resolution;

                         (iv) (CLOSING OF REGISTER) that the persons appointed
                              to maintain the relevant Register, for the purpose
                              of determining those entitled to attend, may not
                              register any Note Transfer relating to A$ Notes in
                              the relevant Class or Classes for the period of 2
                              Business Days prior to the meeting;

                         (v)  (APPOINTMENT OF PROXIES) that appointments of
                              proxies must be lodged no later than 24 hours
                              prior to the time fixed for the meeting; and

                         (vi) (ADDITIONAL INFORMATION) such additional
                              information as the person giving the notice thinks
                              fit.

               29.4 CHAIRPERSON

                    The Trustee may nominate a person to be chairperson of a
                    meeting which has been convened by the Trustee or the
                    Manager. The chairperson need not be an A$ Noteholder and
                    may be a representative of the Trustee. If such a person is
                    not present or is present but unwilling to act, then the
                    relevant Class or Classes of A$ Noteholders (as the case may
                    be) present may choose an A$ Noteholder to be the
                    chairperson.

               29.5 QUORUM

                    At any meeting any two or more persons present in person
                    being either of the relevant Class or Classes of A$
                    Noteholders (as the case may be) or a Representative,
                    holding or representing, A$ Notes in the relevant Class,
                    with an aggregate Invested Amount of not less than 75% of
                    the Invested Amounts of all A$ Notes outstanding in that
                    Class shall form a quorum for the transaction of business
                    and no business (other than the

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                    choosing of a chairperson) shall be transacted at any
                    meeting unless the requisite quorum is present at the
                    commencement of business.

               29.6 ADJOURNMENT

                    (a)  (QUORUM NOT PRESENT) If within 15 minutes from the time
                         appointed for any meeting a quorum is not present, the
                         meeting shall stand adjourned (unless the Trustee
                         agrees that it be dissolved) for such period, not being
                         less than 7 days nor more than 42 days, as may be
                         appointed by the chairperson. At such adjourned meeting
                         two or more persons present in person being either of
                         the relevant Class or Classes of A$ Noteholders (as the
                         case may be) or a Representative, holding or
                         representing, A$ Notes in the relevant Class, with an
                         aggregate Invested Amount of not less than 50% of the
                         Invested Amounts of all A$ Notes outstanding in that
                         Class shall form a quorum and shall have the power to
                         pass any resolution and to decide on all matters which
                         could properly have been dealt with at the meetings
                         from which the adjournment took place had a quorum been
                         present at such meeting.

                    (b)  (ADJOURNMENT OF MEETING) The chairperson may with the
                         consent of (and shall if directed by) any meeting
                         adjourn the same from time to time and from place to
                         place but no business shall be transacted at any
                         adjourned meeting except business which might lawfully
                         have been transacted at the meeting from which the
                         adjournment took place.

                    (c)  (NOTICE OF ADJOURNED MEETING) At least 5 days' notice
                         of any meeting adjourned through want of a quorum shall
                         be given in the same manner as for the original meeting
                         and such notice shall state the quorum required at such
                         adjourned meeting. It shall not, however, otherwise be
                         necessary to give any notice of an adjourned meeting.

               29.7 VOTING PROCEDURE

                    (a)  (SHOW OF HANDS) Every resolution submitted to a meeting
                         shall be decided in the first instance by a show of
                         hands and, in case of equality of votes, the
                         chairperson shall both on a show of hands and on a poll
                         have a casting vote in addition to the vote or votes
                         (if any) to which he or she may be entitled as an A$
                         Noteholder or as a Representative.

                    (b)  (DECLARATION) At any meeting, unless a poll is (before
                         or on the declaration of the result of the show of
                         hands) demanded, a declaration by the chairperson that
                         a resolution has been carried by a particular majority
                         or lost or not carried by any particular majority is
                         conclusive evidence of the fact without

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                         proof of the number or proportion of the votes recorded
                         in favour of or against such resolution.

                    (c)  (POLL) If at any meeting a poll is demanded by the
                         chairperson, the Trustee or the Manager or by one or
                         more persons being either of the relevant Class or
                         Classes of A$ Noteholders (as the case may be) or a
                         Representative, holding or representing, A$ Notes in
                         the relevant Class, with an aggregate Invested Amount
                         of not less than 2% of the Invested Amounts of all A$
                         Notes outstanding in that Class, it shall be taken in
                         such manner and (subject to this clause) either at once
                         or after such an adjournment as the chairperson directs
                         and the result of such poll shall be deemed to be the
                         resolution of the meeting at which the poll was
                         demanded as at the date of the taking of the poll. The
                         demand for a poll shall not prevent the continuance of
                         the meeting for the transaction of any business other
                         than the question on which the poll has been demanded.
                         The demand for a poll may be withdrawn.

                    (d)  (NO ADJOURNMENT) Any poll demanded at any meeting on
                         the election of a chairperson or on any question of
                         adjournment shall be taken at the meeting without
                         adjournment.

                    (e)  (VOTES) Subject to clause 29.7(a), at any meeting:

                         (i)  on a show of hands, every person present being an
                              A$ Noteholder in respect of the relevant Class or
                              Classes of A$ Notes holding, or being a
                              Representative holding or representing, then
                              outstanding $A Notes of the relevant Class or
                              Classes (as the case may be) shall have one vote;
                              and

                         (ii) on a poll, every person present shall have one
                              vote for each $A Note of the relevant Class or
                              Classes (as the case may be) then outstanding that
                              he or she holds or in respect of which he or she
                              is a Representative as stated in the relevant
                              Register at the date the notices are dispatched to
                              the relevant A$ Noteholders for the meeting.

                         Any person entitled to more than one vote need not use
                         all his or her votes or cast all his or her votes to
                         which he or she is entitled in the same way.

               29.8 RIGHT TO ATTEND AND SPEAK

                    The Trustee, the Manager and each relevant Residual Income
                    Beneficiary (through their respective representatives) and
                    their respective financial and legal advisers shall be
                    entitled to attend and

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                    speak at any meeting of the A$ Noteholders or any Class (as
                    the case may be). No person shall otherwise be entitled to
                    attend or vote at any meeting of the A$ Noteholders or any
                    Class (as the case may be) unless he or she holds
                    outstanding A$ Notes of the relevant Class or is a
                    Representative holding , or representing the holder of, A$
                    Notes of the relevant Class.

               29.9 APPOINTMENT OF PROXIES

                    (a)  (REQUIREMENTS) Each instrument appointing a proxy shall
                         be in writing and, together (if so required by the
                         Trustee) with proof satisfactory to the Trustee of its
                         due execution, shall be deposited at the registered
                         office of the Trustee or at such other place as the
                         Trustee shall designate or approve not less than 24
                         hours before the time appointed for holding the meeting
                         or adjourned meeting at which the named proxy proposes
                         to vote and in default, the instrument or proxy shall
                         be treated as invalid unless the chairperson of the
                         meeting decides otherwise before such meeting or
                         adjourned meeting proceeds to business. A notarially
                         certified copy proof (if applicable) of due execution
                         shall if required by the Trustee be produced by the
                         proxy at the meeting or adjourned meeting but the
                         Trustee shall not be obliged to investigate or be
                         concerned with the validity of the instrument, or the
                         authority of, the proxy named in any such instrument.
                         Any person may act as a proxy whether or not that
                         person is an A$ Noteholder.

                    (b)  (PROXY REMAINS VALID) Any vote given in accordance with
                         the terms of an instrument of proxy conforming with
                         clause 29.9(a) shall be valid notwithstanding the
                         previous death or insanity of the principal, revocation
                         or amendment of the proxy or of any of the A$
                         Noteholder's instructions under which it was executed,
                         so long as no intimation in writing of such death,
                         insanity, revocation or amendment is received by the
                         Trustee at its registered office or by the chairperson
                         of the meeting in each case not less than 24 hours
                         before the commencement of the meeting or adjourned
                         meeting at which the proxy is used.

               29.10 CORPORATE REPRESENTATIVES

                    A person authorised under section 250D of the Corporations
                    Act 2001 (Cth), by an A$ Noteholder being a body corporate,
                    to act for it at any meeting shall, in accordance with his
                    or her authority until his or her authority is revoked by
                    the body corporate concerned, be entitled to exercise the
                    same powers on behalf of that body corporate as that body
                    corporate could exercise if it were an individual A$
                    Noteholder and shall be entitled to produce evidence of his
                    or her authority to act at any time before the time
                    appointed for the holding of or at the meeting or

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                    adjourned meeting or for the taking of a poll at which he
                    proposes to vote.

               29.11 RIGHTS OF REPRESENTATIVES

                    A Representative of an A$ Noteholder shall have the right to
                    demand or join in demanding a poll and shall (except and to
                    the extent to which the Representative is specially directed
                    to vote for or against any proposal) have power generally to
                    act at a meeting for that A$ Noteholder. The Trustee, the
                    Manager and any officer of the Trustee and the Manager may
                    be appointed a Representative.

               29.12 POWERS OF A MEETING OF A$ NOTEHOLDERS

                    (a)  (POWERS) Subject to the Security Trust Deed (and in
                         particular any power of the Note Trustee and the Class
                         A-2 Noteholders to override the decisions of either or
                         both of the Class B Noteholders and the Class C
                         Noteholders), a meeting of all or any Class A$
                         Noteholders shall, without prejudice to any rights or
                         powers conferred on other persons by the Transaction
                         Documents, only have power to do the following
                         exercisable by Extraordinary Resolution:

                         (i)  to sanction any action that the Trustee, the
                              Manager or the relevant Servicer proposes to take
                              to enforce the provisions of any Transaction
                              Document;

                         (ii) to sanction any proposal by the Manager, the
                              Trustee or the relevant Servicer for any
                              modification, abrogation, variation or compromise
                              of, or arrangement in respect of, the rights of
                              the relevant Class or Classes of A$ Noteholders
                              against the Trustee, the Manager, an Approved
                              Seller or the relevant Servicer whether such
                              rights arise under any Transaction Document or
                              otherwise;

                         (iii) to sanction the exchange or substitution of the
                              relevant Class or Classes of A$ Notes for, or the
                              conversion of the relevant Class or Classes of A$
                              Notes into, other obligations or securities of the
                              Trustee or any other body corporate formed or to
                              be formed;

                         (iv) under clause 33.2 of the Master Trust Deed, to
                              consent to any alteration, addition or
                              modification of any Transaction Document which
                              shall be proposed by the Trustee or the Manager;

                         (v)  to discharge or exonerate the Trustee, the
                              Manager, an Approved Seller or the relevant
                              Servicer from any liability in respect of any act
                              or omission for which it

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                              may become responsible under any Transaction
                              Document;

                         (vi) to authorise the Trustee, the Manager, the
                              relevant Servicer or any other person to concur in
                              and execute and do all such documents, acts and
                              things as may be necessary to carry out and give
                              effect to any Extraordinary Resolution; and

                         (vii) to exercise any other power expressly granted
                              under the Supplementary Terms Notice.

               (b)  (NO POWER) No meeting of the Class A$ Noteholders shall have
                    power to, nor shall any resolution submitted to the meeting
                    propose or have the effect of:

                         (i)  removing the Servicer or the Manager from office;

                         (ii) interfering with the management of the Trust;

                         (iii) winding up or terminating the Trust (except as
                              contemplated by clause 29.12(a)(vii));

                         (iv) altering the Authorised Investments of the Trust;

                         (v)  amending any Transaction Document (except as
                              contemplated by clause 29.12(a)); or

                         (vi) altering the Interest Payment Dates, Principal
                              Payment Dates, Interest, Principal Entitlements or
                              the other terms of the Supplementary Terms Notice
                              (subject to clause 29.12(a)(iii)).

               29.13 EXTRAORDINARY RESOLUTION BINDING ON A$ NOTEHOLDERS

                    An Extraordinary Resolution passed at a meeting of any Class
                    or Classes of A$ Noteholders duly convened and held in
                    accordance with this deed shall be binding on all of the
                    relevant Class or Classes of A$ Noteholders whether or not
                    present at such meeting. Each such A$ Noteholder, the
                    Trustee and the Manager shall be bound to give effect to
                    that resolution accordingly.

               29.14 MINUTES AND RECORDS

                    Minutes of all resolutions and proceedings at every meeting
                    of any Class of A$ Noteholders shall be made and duly
                    entered in the books to be from time to time provided for
                    that purpose by the Trustee and any such minutes purporting
                    to be signed by the chairperson of the meeting at which such
                    resolutions were passed or proceedings transacted or by the
                    chairperson of the next succeeding meeting of that Class of
                    A$ Noteholders shall be conclusive evidence of those matters
                    and until the contrary is proved every such meeting in
                    respect of the proceedings of which minutes have been made
                    and signed shall be deemed to have been

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                    duly convened and held and all resolutions passed or
                    proceedings transacted at such meeting to have been duly
                    passed and transacted.

               29.15 WRITTEN RESOLUTIONS

                    Notwithstanding the preceding provisions of this clause 29,
                    a resolution of a Class or Classes of A$ Noteholders
                    (including an Extraordinary Resolution) may be passed,
                    without any meeting or previous notice being required, by an
                    instrument or instruments in writing which has or have:

                    (a)  in the case of a resolution (including an Extraordinary
                         Resolution) of the relevant Class or Classes of A$
                         Noteholders (as the case may be), been signed by all of
                         the A$ Noteholders in the relevant Class or Classes of
                         Class A$ Noteholders; and

                    (b)  any such instrument shall be effective on presentation
                         to the Trustee for entry in the records referred to in
                         clause 29.14.

               29.16 FURTHER PROCEDURES FOR MEETINGS

                    Subject to all other provisions contained in this deed, the
                    Trustee may, without the consent of any A$ Noteholders,
                    prescribe such further regulations regarding the holding of
                    any meetings of any or all Classes of A$ Noteholders and
                    attendance and voting at such meetings as the Trustee may,
                    with the agreement of the Manager, determine including
                    particularly (but without prejudice to the generality of the
                    above) such regulations and requirements as the Trustee
                    thinks reasonable:

                    (a)  (ENTITLEMENT TO VOTE) so as to satisfy itself that
                         persons who purport to attend or vote at any meeting of
                         any A$ Noteholders are entitled to do so in accordance
                         with this deed; and

                    (b)  (FORMS OF REPRESENTATIVE) as to the form of appointment
                         of a Representative,

                    but the Trustee may not decrease the percentage of a Class
                    or Classes of A$ Noteholders required to pass an
                    Extraordinary Resolution or an ordinary resolution.

     (ss) CLAUSE 30.13

          For the purpose of the Trust, in clause 30.13, a new paragraph (g) is
          inserted as follows:

               (g)  The Trustee will not be regarded as negligent or in breach
                    of trust to the extent to which it accepts and relies on an
                    opinion, advice or letter from a professional adviser
                    (legal, financial, audit or otherwise) which contains a
                    dollar amount limitation on that professional adviser's
                    liability.

     (tt) CLAUSE 30.15

          (i)  For the purpose of the Trust, clause 30.15 is amended by deleting
               each reference to "Civil Penalty Payments" and replacing it with
               the words "Penalty Payments"

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          (ii) For the purpose of the Trust, in clause 30.15(f) a new sub
               paragraph (v) is inserted as follows:

                    (v)  the amount of any criminal penalty which the Trustee is
                         ordered to pay under the Consumer Credit Legislation.

     (uu) CLAUSE 32 - PAYMENTS GENERALLY

          For the purpose of the Trust clause 32 is amended as follows:

          (i)  Clause 32.1 of the Master Trust Deed is deleted and replaced with
               the following.

               32.1 PAYMENTS TO NOTEHOLDERS

               (a)  Any payment made by or on behalf of the Trustee in respect
                    of any Class A-1 Note shall be made in accordance with the
                    relevant Supplementary Terms Notice, the Note Trust Deed and
                    the Agency Agreement;

               (b)  Any payment made by or on behalf of the Trustee in respect
                    of any A$ Note shall be made to the person whose name is, on
                    the Record Date, entered in the Register as the holder of
                    the relevant A$ Note (or in the case of joint A$
                    Noteholders, to the person whose name first appears in the
                    Register).

          (ii) Clause 32.2 of the Master Trust Deed is deleted and replaced with
               the following.

               32.2 MANAGER TO ARRANGE PAYMENTS

                    The Trustee will:

                    (a)  prepare or cause to be prepared all cheques which are
                         to be issued to A$ Noteholders and to Beneficiaries and
                         stamp the same as required by law; or

                    (b)  otherwise arrange payments under clause 32.7.

                    The Trustee will sign (by autographical, mechanical or other
                    means) cheques for despatch on the day on which they ought
                    to be despatched.

          (iii) Clause 32.4 of the Master Trust Deed is deleted and replaced
               with the following.

               32.4 PAYMENT GOOD DISCHARGE

                    There is a full satisfaction of the moneys payable under an
                    A$ Note, and a good discharge to the Trustee, the Manager or
                    the Servicer (as the case may be) in relation to that A$
                    Note, when the cheque is despatched by post in accordance
                    with clause 32.2(a) or, if not posted, delivered to the A$
                    Noteholder or as directed by the A$ Noteholder. None of the
                    Trustee, the Manager or the Servicer shall be responsible
                    for any moneys which are not credited to the bank account of
                    an A$ Noteholder or a Beneficiary if the Trustee's bank has
                    been instructed to effect the direct transfer referred to in
                    clause 32.7(c).

                    There is a full satisfaction of the moneys payable under a
                    Class A-1 Note, and a good discharge to the Trustee, the
                    Manager or the Servicer (as the

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                    case may be) in relation to that Class A-1 Note, when so
                    provided under the Note Trust Deed.

          (iv) Clause 32.6 of the Master Trust Deed is deleted and replaced with
               the following.

               32.6 TAXATION

                    (a)  (NET PAYMENTS) Subject to this clause, payments in
                         respect of the Notes shall be made free and clear of,
                         and without deduction for, or by reference to, any
                         present or future Taxes of any Australian Jurisdiction
                         unless required by law.

                    (b)  (INTEREST WITHHOLDING TAX)

                         (i)  All payments in respect of the A$ Notes will be
                              made without withholding or deduction for, or on
                              account of, any present or future taxes, duties or
                              charges of whatsoever nature unless the Trustee or
                              any person making payments on behalf of the
                              Trustee is required by applicable law to make any
                              such payment in respect of the A$ Notes subject to
                              any withholding or deduction for, or on account
                              of, any present or future taxes, duties or charges
                              of whatever nature.

                         (ii) Payments on Class A-1 Notes by or on behalf of the
                              Trustee will be made subject to deduction for any
                              Interest Withholding Tax and all other
                              withholdings and deductions referred to in
                              relevant Condition 7 of the Class A-1 Notes.

                         (iii) In the event the Trustee or the person making
                              payments on behalf of the Trustee (as the case may
                              be) makes such payment after such withholding or
                              deduction has been made, the Trustee or the person
                              making such payments on behalf of the Trustee (as
                              the case may be) shall account to the relevant
                              authorities for the amount so required to be
                              withheld or deducted and neither the Trustee nor
                              any person making payments on behalf of the
                              Trustee (as the case may be) will be obliged to
                              make any additional payments to the relevant
                              Noteholders in respect of that withholding or
                              deduction.

                    (c)  The interest payments on the Notes will not be subject
                         to TFN withholding as the Notes will not be "Part VA
                         Investments"

          (v)  A new Clause 32.7 is inserted into the Master Trust Deed as
               follows.

               32.7 PAYMENT METHODS - A$ NOTES

                    Any moneys payable by the Trustee, the Manager or the
                    Servicer to an A$ Noteholder or to a Beneficiary under this
                    Master Trust Deed and the

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                    relevant Supplementary Terms Notice shall be paid by the
                    Trustee in Sydney or if the Trustee elects may be paid by:

                    (a)  (CHEQUE) crossed not negotiable cheque in favour of the
                         A$ Noteholder or the Beneficiary (as the case may be)
                         and despatched by post to the address of the A$
                         Noteholder shown in the Register on the Record Date or
                         to the address of the Beneficiary for the purposes of
                         clause 31;

                    (b)  (ELECTRONIC TRANSFER) electronic transfer through
                         Austraclear;

                    (c)  (DIRECT PAYMENT) by direct transfer to a designated
                         account of the A$ Noteholder or the Beneficiary held
                         with a bank or other financial institution in
                         Australia; or

                    (d)  (OTHER AGREED MANNER) any other manner specified by the
                         A$ Noteholder or the Beneficiary (as the case may be)
                         and agreed to by the Manager and the Trustee.

     (vv) CLAUSE 33.14

          For the purposes of clause 30.12 of the Master Trust Deed, insert a
          new paragraph (j) as follows and renumber the existing paragraph (j)
          as paragraph (k):

               (j)  (FOR ACTS OF NOTE REGISTRAR) for any act, omission or
                    default of any Note Registrar appointed under the Agency
                    Agreement or Note Trust Deed, in relation to its duties and
                    obligations under the Agency Agreement or Note Trust Deed,
                    except where the Note Registrar is the Trustee.

6.3  AMENDMENTS TO THE SERVICING AGREEMENT

     The Servicing Agreement is amended for the purpose of the Trust as follows:

     (a)  A new clause 3.1(v) is inserted as follows:

          (v)  deliver to the Manager a certificate in the form of Schedule 5 of
               the Supplementary Terms Notice (or such other form as is required
               under the Rules of the United States Securities and Exchange Act
               of 1934, as amended) in respect of that Trust;

     (b)  A new clause 3.1(w) is inserted as follows:

          use its best endeavours to procure that, each year, an independent
          public accountant:

          (i)  conducts an examination of the documents and records relating to
               the servicing by the Servicer of the Loans secured by Mortgages
               in respect of that Trust during the most recent calendar year
               ended 30 September, which complies with the Uniform Single
               Attestation Program for Mortgage Bankers issued by the Mortgage
               Bankers Associate of America or similar procedure; and

          (ii) delivers to the Manager a compliance certificate similar to that
               attached as Schedule 6 of the Supplementary Terms Notice (or such
               other form as is required under the Rules of the United States
               Securities and Exchange Act of 1934, as amended) in respect of
               that examination,

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          in each case such that the Manager is able to comply with its
          obligations under Section 302 of the United States Sarbanes-Oxley Act
          of 2002 and Rules 13a-14 and 15d-14 of the United States Securities
          Exchange Act of 1934, provided that in the case of Crusade Global
          Trust No. 2 of 2005, the first year in which a certificate or audit
          report referred to above is deliverable, or on examination is
          required, will be 2005.

     (c)  Clause 5.2(a) is amended by replacing the words "on the Remittance
          Date for that Collection Period" with the words "on or before the
          expiration of five (5) Business Days from receipt by the Servicer".

     (d)  Clause 5.2(b)(ii) is amended by replacing the words "five Business
          Days following receipt by the Servicer" with the words "immediately
          upon receipt by the Servicer".

     (e)  Clause 7.3(a) is amended by replacing the number "120" with the number
          "90".

6.4  CLAUSE 6.14

     For the purposes of clause 6.14 of the Master Trust Deed, all references to
     Notes in that clause shall be references only to Class A-1 Notes.

7.   CALL AND TAX REDEMPTION
--------------------------------------------------------------------------------

7.1  CALL OF CLASS A NOTES

     The Trustee must, when so directed by the Manager (at the Manager's
     option), having given not more than 60 nor less than 45 days' notice to the
     Class A Noteholders in accordance with, in the case of the Class A-1 Notes,
     Condition 12 and in the case of the Class A-2 Notes, in accordance with the
     terms of this Supplementary Terms Notice and the Master Trust Deed,
     purchase or redeem all, but not some only of the Class A Notes by repaying
     the Invested Amount, or, if all the Class A Noteholders so agree, the
     Stated Amount, of those Class A Notes, together with accrued interest to
     (but excluding) the date of repurchase or redemption on any Quarterly
     Payment Date falling on or after the Quarterly Payment Date on which the
     Total Stated Amount of all Notes is equal to or less than 10% of the
     aggregate of the Initial Invested Amount of all Notes (the CALL DATE)
     provided that the Trustee will be in a position on such Quarterly Payment
     Date to discharge (and the Manager so certifies to the Trustee and the Note
     Trustee upon which the Trustee and the Note Trustee will rely conclusively)
     all its liabilities in respect of the Class A Notes (at their Invested
     Amount or their Stated Amount if so agreed by all the Class A Noteholders)
     and any amounts which would be required under the Security Trust Deed to be
     paid in priority or pari passu with the Class A Notes if the security for
     the Notes were being enforced.

7.2  CALL OF CLASS B NOTES

     The Trustee must, when so directed by the Manager (at the Manager's
     option), having given not more than 60 nor less than 45 days' notice to the
     Class B Noteholders in accordance with the terms of the Supplementary Terms
     Notice and the Master Trust Deed and purchase or redeem all, but not some
     only of the Class B Notes by repaying the Invested Amount, or, if the Class
     B Noteholders, by Extraordinary Resolution of the Class B Noteholders so
     agree, the Stated Amount, of those Class B Notes, together with accrued
     interest to (but excluding) the date of repurchase or redemption on any
     Quarterly Payment Date falling on or after the Quarterly Payment Date on
     which the Total Stated

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     Amount of all Notes is equal to or less than 10% of the aggregate of the
     Initial Invested Amount of all Notes, provided that:

     (a)  the Trustee will be in a position on such Quarterly Payment Date to
          discharge (and the Manager so certifies to the Trustee upon which the
          Trustee will rely conclusively) all its liabilities in respect of the
          Class B Notes (at their Invested Amount or their Stated Amount if so
          agreed by the Class B Noteholders) and any amounts which would be
          required under the Security Trust Deed to be paid in priority or pari
          passu with the Class B Notes if the security for the Notes were being
          enforced; and

     (b)  all Class A Notes have been redeemed in full before that Quarterly
          Repayment Date, or will be redeemed in full on that Quarterly
          Repayment Date.

7.3  CALL OF CLASS C NOTES

     The Trustee must, when so directed by the Manager (at the Manager's
     option), having given not more than 60 nor less than 45 days' notice to the
     Class C Noteholders in accordance with the terms of the Supplementary Terms
     Notice and the Master Trust Deed, and purchase or redeem all, but not some
     only of the Class C Notes by repaying the Invested Amount, or, if the Class
     C Noteholders, by Extraordinary Resolution of the Class C Noteholders so
     agree, the Stated Amount, of those Class C Notes, together with accrued
     interest to (but excluding) the date of repurchase or redemption on any
     Quarterly Payment Date falling on or after the Quarterly Payment Date on
     which the Total Stated Amount of all Notes is equal to or less than 10% of
     the aggregate of the Initial Invested Amount of all Notes, provided that:

     (a)  the Trustee will be in a position on such Quarterly Payment Date to
          discharge (and the Manager so certifies to the Trustee upon which the
          Trustee will rely conclusively) all its liabilities in respect of the
          Class C Notes (at their Invested Amount or their Stated Amount if so
          agreed by the Class C Noteholders) and any amounts which would be
          required under the Security Trust Deed to be paid in priority or pari
          passu with the Class C Notes if the security for the Notes were being
          enforced; and

     (b)  all Class B Notes have been redeemed in full before that Quarterly
          Repayment Date or will be redeemed in full on that Quarterly Repayment
          Date.

7.4  TAX EVENT

     If the Manager satisfies the Trustee and the Note Trustee immediately prior
     to giving the notice referred to below that either:

     (a)  on the next Quarterly Payment Date the Trustee (or a Paying Agent)
          would be required to deduct or withhold from any payment of principal
          or interest in respect of the Notes or the Currency Swap in respect of
          any Class A-1 Notes any amount for or on account of any present or
          future taxes, duties, assessments or governmental charges of whatever
          nature imposed, levied, collected, withheld or assessed by the
          Commonwealth of Australia or any of its political sub-divisions or any
          of its authorities; or

     (b)  the total amount payable in respect of interest in relation to any of
          the Purchased Receivables for a Collection Period ceases to be
          receivable (whether or not actually received) by the Trustee during
          such Collection Period (but, for the avoidance of doubt, this

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          paragraph does not apply to the failure by the Trustee to receive any
          interest on any Purchased Receivable merely by reason of the failure
          by the relevant Obligors to pay that interest in breach of the
          relevant Purchased Receivable),

     the Trustee must, when so directed by the Manager, at the Manager's option
     (provided that the Trustee will be in a position on such Quarterly Payment
     Date to discharge (and the Manager will so certify to the Trustee and the
     Note Trustee) all its liabilities in respect of those Notes (at their
     Invested Amount or if the Noteholders of those Notes have agreed by
     Extraordinary Resolution and have so notified the Trustee and the Manager
     not less than 21 days before such Quarterly Payment Date, at their Stated
     Amount) and any amounts which would be required under the Security Trust
     Deed to be paid in priority or pari passu with those Notes if the security
     for the Notes were being enforced), having given not more than 60 nor less
     than 45 days' notice to the Noteholders of those Notes (and all other
     Noteholders whose Notes are to be redeemed at the same time), in accordance
     with Condition 12 for any Class A-1 Notes redeem all, but not some only, of
     those Notes at their Invested Amount (or, if the Class A Noteholders by
     Extraordinary Resolution have so agreed, at their Stated Amount) together
     with accrued interest to (but excluding) the date of redemption on any
     subsequent Quarterly Payment Date, provided that the Class A Noteholders
     may by Extraordinary Resolution elect, and shall notify the Trustee and the
     Manager not less than 21 days before the next Quarterly Payment Date
     following the receipt of notice of such proposed redemption, that they do
     not require the Trustee to redeem the Class A Notes.

7.5  FULL SATISFACTION

     Repayment and redemption of Class A Notes, Class B Notes or Class C Notes
     in accordance with clause 7.1, 7.2, 7.3 or 7.4 (as the case may be) shall
     be in full satisfaction of the Trustee's obligations under the relevant
     Notes.

8.   SUBSTITUTION AND REMOVAL OF PURCHASED RECEIVABLES
--------------------------------------------------------------------------------

8.1  APPROVED SELLER SUBSTITUTION

     (a)  The Trustee must, at the direction of the Manager (at the Manager's
          option), at any time replace a Receivable of the Trust which has been
          repurchased by the Approved Seller under clause 12.6(d) of the Master
          Trust Deed using the funds received from the repurchase to purchase a
          substitute Eligible Receivable from the Approved Seller, if available.

     (b)  The Approved Seller may elect to sell a substitute Receivable to the
          Trustee (which the Trustee shall acquire if it is directed by the
          Manager to do so), provided the substitute Receivable satisfies the
          following requirements:

          (i)  it complies with the Eligibility Criteria;

          (ii) at the time of substitution, the substitute Receivable has a
               maturity date no later than the date being 2 years prior to the
               Final Maturity Date;

          (iii) the substitution will not adversely affect the Rating of any
               Notes;

          (iv) the relevant Mortgage Insurer has confirmed that the substitute
               Receivable is covered by the relevant Mortgage Insurance Policy;
               and

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          (v)  it is selected by the Manager in accordance with clause 8.3.

8.2  OTHER SUBSTITUTIONS

     The Trustee must, at the direction of the Manager (at the Manager's
     option), at any time:

     (a)  replace a Mortgage relating to a Purchased Receivable;

     (b)  allow an Obligor to replace the Mortgaged Property secured by such a
          Mortgage; or

     (c)  allow an Obligor to refinance a Purchased Receivable to purchase a new
          Mortgaged Property,

     provided that all of the following conditions are met:

          (i)  the same Obligor or Obligors continue to be the Obligor or
               Obligors under the replacement Mortgage and that Purchased
               Receivable or refinanced Receivable (as the case may be);

          (ii) either the replacement Mortgage, or the replacement Mortgaged
               Property, do not result in the relevant Purchased Receivable
               failing to comply with the Eligibility Criteria or the refinanced
               Receivable satisfies the Eligibility Criteria (as the case may
               be);

          (iii) any such replacement or refinancing occurs simultaneously with
               the release of the previous Mortgage, Mortgaged Property or
               Receivable (as the case may be);

          (iv) the principal outstanding under the relevant Receivable is, after
               the replacement or refinancing, the same as before that
               replacement or refinancing; and

          (v)  clause 8.3 applies.

8.3  SELECTION CRITERIA

     (a)  The Manager will apply the following criteria (in descending order of
          importance) when selecting a substitute Eligible Receivable under
          clause 8.1 or approving a substitution under clause 8.2:

          (i)  the substitute Eligible Receivable will have an Unpaid Balance
               within A$30,000 of the outgoing Eligible Receivable's Unpaid
               Balance, as determined at the time of substitution;

          (ii) an outgoing owner-occupied or investment Mortgage will be
               replaced by another owner-occupied or investment Mortgage (as the
               case may be);

          (iii) the substitute Eligible Receivable will have a then current LVR
               no more than five per cent (5%) greater than the outgoing
               Eligible Receivables then current LVR, as determined at the time
               of substitution;

          (iv) an outgoing Eligible Receivable will be substituted by another
               Eligible Receivable with a security property located in the same
               State or Territory;

          (v)  an outgoing Eligible Receivable will be substituted by another
               Eligible Receivable with a security property with the same or
               similar postcode; and

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          (vi) in the case of substitution under clause 8.1, the substitute
               Eligible Receivable will have the closest original loan amount to
               that of the outgoing Eligible Receivable.

     (b)  The Trustee is entitled to rely on the information provided by the
          Manager in this regard.

8.4  REMOVAL OF PURCHASED RECEIVABLES - TOP UPS

     (a)  If during any Collection Period an Obligor requests from the Servicer
          an increase in the principal balance under the Receivable Agreement
          for the relevant Purchased Receivable (other than as a Redraw) and
          that request is approved by the Servicer, the Manager must direct the
          Trustee to offer to transfer that Purchased Receivable from the Trust
          to St. George subject to this clause 8.4 unless it is a Further
          Advance made in accordance with clause 5.8.

     (b)  If the Trustee receives a direction from the Manager under paragraph
          (a) in respect of a Purchased Receivable, it must deliver to St.
          George an offer in writing to extinguish the Trustee's equitable title
          to the relevant Purchased Receivables in favour of St. George. The
          Manager must prepare that offer on behalf of the Trustee, and that
          offer must specify:

          (i)  details of the Purchased Receivable;

          (ii) the proposed date of extinguishment of equitable title;

          (iii) the unpaid principal amount of the Purchased Receivable;

          (iv) the Unpaid Balance of the Purchased Receivable as at the proposed
               date of extinguishment of equitable title; and

          (v)  such other details as St. George reasonably requires in such
               offers from time to time.

     (c)  If St. George receives an offer under paragraph (b) in respect of a
          Purchased Receivable it may, but is not obliged to, accept that offer
          by paying the Unpaid Balance of that Purchased Receivable on the date
          of extinguishment. On that payment, and without the need for any
          person to do any other act, matter or thing:

          (i)  the Trustee shall cease to have any interest in the relevant
               Purchased Receivables and related Receivable Rights;

          (ii) St. George shall hold both the legal and beneficial interest in
               those Purchased Receivables and Receivable Rights and be entitled
               to all interest and fees that accrue in respect of them from (and
               including) the date of extinguishment; and

          (iii) no rights or interest under or in respect of those Receivables
               or Receivable Rights shall form part of the Assets of the Trust.

     (d)  Notwithstanding any negotiations or discussions undertaken between St.
          George, the Manager or the Trustee prior to St. George accepting the
          offer under paragraph (b), St. George is not obliged to accept that
          offer and no contract for the sale or purchase of any Purchased
          Receivables or related Receivable Rights referred to in that offer
          will arise unless and until St. George accepts that offer in
          accordance with this clause.

     (e)  If St. George does not accept an offer under paragraph (b) to transfer
          a Purchased Receivable, the request by the Obligor in respect of that
          Purchased Receivable referred to in

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          paragraph (a) must not be accepted and the principal balance of that
          Purchased Receivable may not be increased in accordance with that
          request.

9.   APPLICATION OF THRESHOLD RATE
--------------------------------------------------------------------------------

9.1  CALCULATION OF THRESHOLD RATE

     If at any time the Basis Swap is terminated, the Manager must, on each of:

     (a)  the earlier of:

          (i)  the date which is 3 Business Days following the date on which the
               Basis Swap is terminated; and

          (ii) the Determination Date immediately following the date on which
               the Basis Swap is terminated; and

     (b)  each successive Determination Date for so long as the Basis Swap has
          not been replaced by a similar Hedge Agreement or until the Trustee
          and the Manager otherwise agree (and each Designated Rating Agency for
          each Class of Notes has confirmed in writing that that agreement would
          not result in a downgrading of the rating given to any relevant Note
          or the withdrawal of the rating of any relevant Note),

     calculate the Threshold Rate as at that date and notify the Trustee, the
     Servicer and the Approved Seller of that Threshold Rate on the relevant
     Payment Date.

9.2  SETTING THRESHOLD RATE

     If the Servicer is notified of a Threshold Rate under clause 9.1, it will,
     not more than 7 Business Days following the date on which the Basis Swap is
     terminated, ensure that the interest rate payable on each Purchased
     Receivable which is subject to a variable rate is set not less than the
     Threshold Rate and shall promptly notify the relevant Obligors of the
     change in accordance with the Receivable Agreements.

9.3  LOAN OFFSET DEPOSIT ACCOUNTS

     If at any time there is no current Basis Swap in place, the Servicer and
     the Approved Seller must ensure that the interest rates applicable to the
     Loan Offset Deposit Accounts are such that, if the Approved Seller does not
     meet any of its obligations under clause 5.25, the Servicer will not be
     required, as a direct result of that non-payment, to increase the Threshold
     Rate under this clause 9.

10.  TITLE PERFECTION EVENTS
--------------------------------------------------------------------------------

     Each of the following is a Title Perfection Event.

     (a)  (DOWNGRADE) The Approved Seller ceases to have a long term rating of
          at least BBB from S&P or Baa2 from Moody's or BBB from Fitch Ratings.

     (b)  (EVENT OF INSOLVENCY) An Insolvency Event occurs with respect to the
          Approved Seller.

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     (c)  (NON COMPLIANCE) The Servicer as Approved Seller fails to pay any
          Collections (as defined in the Servicing Agreement) within the time
          required under the Servicing Agreement.

     (d)  (SERVICER TRANSFER EVENT) For so long as the Servicer is also an
          Approved Seller to the Trust, a Servicer Transfer Event occurs.

     (e)  (BREACH OF REDRAW FACILITY AGREEMENT) For so long as the Approved
          Seller is also the Redraw Facility Provider, the Redraw Facility
          Provider breaches its obligations, undertakings or representations
          under the Redraw Facility Agreement and such breach has had, or if
          continued will have, a Material Adverse Effect (as determined by the
          Trustee after taking appropriate expert advice).

     (f)  (BREACH OF REPRESENTATIONS) The Approved Seller breaches any
          representation, warranty, covenant or undertaking made by it in a
          Transaction Document, which breach, if capable of remedy, is not
          remedied within 30 days of the earlier of:

          (i)  the Approved Seller becoming aware of the breach; and

          (ii) the Approved Seller being notified of the breach by the Trustee,
               Manager or Servicer.

11.  BENEFICIARY
--------------------------------------------------------------------------------

11.1 ISSUE OF UNITS

     (a)  The beneficial interest in the Trust will be constituted by the issue
          of:

          (i)  a single residual capital unit (the RESIDUAL CAPITAL UNIT);
               and

          (ii) a single residual income unit (the RESIDUAL INCOME UNIT).

          The holders of the Residual Capital Unit and the Residual Income Unit
          (each, a UNIT) hold the beneficial interest in the Trust in accordance
          with the Master Trust Deed and this Supplementary Terms Notice.

     (b)  The Trustee must, on receipt of the issue price of each Unit specified
          below, issue the relevant Unit by registering the holder in the
          register kept under this clause 11.

     (c)  A failure by the Trustee to issue a Unit does not affect a
          Beneficiary's rights as a beneficiary of the Trust under the Master
          Trust Deed and this Supplementary Terms Notice.

11.2 RESIDUAL CAPITAL UNIT

     (a)  The holder of the Residual Capital Unit is Allens Arthur Robinson
          Corporate Advisory Pty Ltd.

     (b)  The issue price of the Residual Capital Unit is the amount of $10,
          paid on establishment of the Trust.

     (c)  The Residual Capital Beneficiary has no right to receive distributions
          in respect of the Trust other than the right to receive an amount of
          $10 on the termination of the Trust. The Residual Capital Unit may not
          be redeemed at any other time or in any other way.

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     (d)  The Residual Capital Unit is not transferable except that the Residual
          Capital Beneficiary may transfer the Residual Capital Unit to the
          Residual Income Beneficiary provided that the Trustee and the Note
          Trustee have received a tax opinion, in a form and substance
          acceptable to the Trustee (acting reasonably), that the transfer of
          the Residual Capital Unit will not adversely affect the taxation
          treatment of the Trust and each of the other parties to this
          Supplementary Terms Notice, after being given prior notice in writing,
          is reasonably satisfied that they and the Noteholders will not be
          adversely affected by the transfer of the Residual Capital Unit to the
          Residual Income Beneficiary.

     (e)  No other Residual Capital Units may be issued.

11.3 RESIDUAL INCOME UNIT

     (a)  The holder of the Residual Income Unit is Crusade Management Limited.

     (b)  The issue price of the Residual Income Unit is the amount of $10, paid
          on establishment of the Trust.

     (c)  The beneficial interest held by the Residual Income Beneficiary is
          limited to the Trust and each Asset of the Trust (subject to the
          rights of the Residual Capital Beneficiary under clause 11.2) subject
          to and in accordance with the Master Trust Deed and this Supplementary
          Terms Notice.

     (d)  Subject to clause 24 of the Master Trust Deed, the Residual Income
          Beneficiary has no right to receive distributions in respect of the
          Trust other than:

          (i)  the right to receive distributions in respect of the Trust under
               the Master Trust Deed and this Supplementary Terms Notice to the
               extent that Excess Distributions are available for distribution
               under the Master Trust Deed and this Supplementary Terms Notice;
               and

          (ii) the right to receive on the termination of the Trust the entire
               beneficial interest of the Trust, subject to the rights of the
               Residual Capital Beneficiary.

     The Residual Income Unit may not be redeemed at any other time or in any
     other way.

     (e)  The Residual Income Unit is not transferable.

     (f)  No other Residual Income Units may be issued.

11.4 UNIT REGISTER

     (a)  The entitlement of any person to a Unit will be evidenced by
          registration in the register maintained under this clause 11.4 (the
          UNIT REGISTER).

     (b)  The Trustee will keep the Unit Register at its registered office in a
          form that it considers appropriate and will enter the following
          particulars:

          (i)  the name and address of each Beneficiary;

          (ii) the date on which the name of each Beneficiary is entered in the
               Unit Register;

          (iii) the date on which each Beneficiary ceases to be registered as a
               Beneficiary;

          (iv) the subscription moneys initially paid for each Unit; and

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          (v)  any other details which the Trustee may consider necessary or
               desirable.

     (c)  Each Beneficiary shall promptly notify the Trustee in writing of any
          change of name or address and the Trustee will alter the Unit Register
          accordingly.

     (d)  The Beneficiary may not assign, or create or allow to exist any
          Security Interest over, its rights or interests in respect of the
          Trust if to do so would have a Material Adverse Effect or might have
          an adverse tax consequence in respect of the Trust.

     (e)  Without limiting clause 11.1, the interest of a Beneficiary will be
          constituted by registration in the Unit Register.

12.  NOTE TRUSTEE
--------------------------------------------------------------------------------

12.1 CAPACITY

     The Note Trustee is a party to this Supplementary Terms Notice in its
     capacity as trustee for and on behalf of the Class A-1 Noteholders from
     time to time under and subject to the terms of the Note Trust Deed.

12.2 EXERCISE OF RIGHTS

     (a)  The rights, remedies and discretions of the Class A-1 Noteholders
          under the Transaction Documents including all rights to vote or give
          instructions to the Security Trustee and to enforce undertakings or
          warranties under the Transaction Documents, except as otherwise
          provided in the Note Trust Deed or the Security Trust Deed, may only
          be exercised by the Note Trustee on behalf of the Class A-1
          Noteholders in accordance with the Note Trust Deed.

     (b)  The Class A-1 Noteholders, except as otherwise provided in the Note
          Trust Deed or the Security Trust Deed, may only exercise enforcement
          rights in respect of the Mortgaged Property through the Note Trustee
          and only in accordance with the Transaction Documents.

12.3 REPRESENTATION AND WARRANTY

     The Note Trustee represents and warrants to each other party to this
     Supplementary Terms Notice that it has the power under the Note Trust Deed
     to enter into the Transaction Documents to which it is a party and to
     exercise the rights, remedies and discretions of, and to vote on behalf of
     the Class A-1 Noteholders, in each case subject to the terms of the
     Transaction Documents.

12.4 PAYMENTS

     Any payment to be made to the Class A-1 Noteholders under the Transaction
     Documents may be made to the Principal Paying Agent or the Note Trustee (as
     the case may be) in accordance with the Agency Agreement and the Note Trust
     Deed.

12.5 PAYMENT TO BE MADE ON BUSINESS DAY

     If any payment is due under a Transaction Document on a day which is not a
     Business Day the due date will be the next Business Day unless that day
     falls in the next calendar month, in which case the due date will be the
     preceding Business Day.

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Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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13.  COMPLIANCE WITH SECURITY TRUST DEED
--------------------------------------------------------------------------------

     The parties to this Supplementary Terms Notice agree to comply with clause
     16.9 of the Security Trust Deed.

14.  CUSTODIAN AGREEMENT
--------------------------------------------------------------------------------

     The Custodian Agreement is amended for the purpose of the Trust by deleting
     the words and between each Relevant Trust from the second/third line of
     clause 3.1(c).

15.  MANAGER'S DIRECTIONS TO BE IN WRITING
--------------------------------------------------------------------------------

     Any direction given to the Trustee by the Manager under a Transaction
     Document must be in writing.

16.  UNDERTAKINGS BY APPROVED SELLER AND SERVICER
--------------------------------------------------------------------------------

     Each of the Seller and Servicer undertakes that:

     (a)  it will not allow the interest rate on a Purchased Receivable which is
          a Fixed Rate Loan to be re-fixed at the end of its fixed rate term if
          it will result in a downgrade or withdrawal of the rating of any
          Notes;

     (b)  it will not allow a Purchased Receivable to convert from a Fixed Rate
          Loan to a Floating Rate Loan, or from a Floating Rate Loan to a Fixed
          Rate Loan, if that conversion would result in a downgrade or
          withdrawal of the rating of any Notes;

     (c)  it must ensure that if the use of any Mortgaged Property which relates
          to a Purchased Receivable from owner occupied to investment, or from
          investment to owner occupied, the relevant Purchased Receivable
          continues to satisfy the Eligibility Criteria; and

     (d)  it must not provide to any Obligor features in respect of a Purchased
          Receivable which are additional to those that applied on the Closing
          Date unless those additional features would not:

          (i)  affect any Mortgage Insurance Policy relating to that Purchased
               Receivable;

          (ii) result in the downgrade or withdrawal of the rating of any Notes.

17. TAX REFORM
--------------------------------------------------------------------------------

17.1 TAXATION OF TRUSTS AND CONSOLIDATED GROUPS

     The parties acknowledge that:

     (a)  in relation to the proposed taxation of non-fixed trusts as companies:

          (i)  the Commonwealth Government has withdrawn draft legislation under
               which non-fixed trusts would have been taxed as companies from 1
               July 2001;

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Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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          (ii) in November 2002 the Board of Taxation recommended that the
               Government retain the current flow-through treatment of
               distributions of non-assessable amounts by non-fixed trusts
               rather than a company type taxation model; and

          (iii) although the Government has not expressly agreed to the
               recommendation of the Board of Taxation described at (ii) above,
               on 12 December 2002 the Government announced its intention to
               amend the taxation laws in accordance with recommendations of the
               Board of Taxation which were incidental to the recommendation
               described at (ii) above.

     (b)  If the Trust becomes a member of a consolidated group of companies and
          trusts under Part 3-90 of the Income Tax Assessment Act 1997 (a
          CONSOLIDATED TAX GROUP), the Trustee could be liable for a share of a
          tax-related liability of the head company of that consolidated tax
          group (a GROUP TAX LIABILITY) if:

          (i)  the head company of the consolidated tax group does not pay that
               group tax liability by the time it becomes due and payable; and

          (ii) that group tax liability is not covered by a tax sharing
               agreement which is consistent with regulations made, or
               guidelines published by the Commissioner of Taxation, concerning
               the allocation of group tax liabilities of a consolidated tax
               group amongst certain members of that group or which is otherwise
               accepted by the Commissioner of Taxation as allocating the group
               tax liabilities of the consolidated tax group amongst those
               members on a reasonable basis (a VALID TAX SHARING AGREEMENT);
               and

     (c)  it is in the interests of all parties, including the Trustee, the
          Noteholders and the Beneficiaries, that:

          (i)  the Trustee always be in a position to pay any Tax liability when
               due;

          (ii) the payment of Tax by the Trustee must not affect the amount of
               principal or interest payable on the Notes or the timing of such
               payments; and

          (iii) the Rating of the Notes be maintained.

17.2 AMENDING BILL - TAXATION OF TRUSTS

     If an amending Bill is introduced into the Federal Parliament (the AMENDING
     BILL), and the result of that amending Bill, if it becomes law, will be
     that the Trustee will become liable to pay Tax on the net income of the
     Trust (as described in clause 17.1(a)), then:

     (a)  the Manager shall promptly consult with the Trustee and each
          Designated Rating Agency to determine what changes, if any, are
          necessary to the cashflow allocation methodology in clause 5 to
          achieve the objective referred to in clause 17.1(c) (the OBJECTIVE);

     (b)  within 1 month of the amending Bill being introduced into Federal
          Parliament (or such longer time as the Trustee and each Designated
          Rating Agency permits) the Manager shall use reasonable endeavours to
          provide a written recommendation to the Trustee and a draft deed
          amending this Supplementary Terms Notice that, if executed, will
          achieve the Objective; and

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     (c)  if and when the amending Bill becomes law, upon the Trustee being
          notified by the Manager that the draft deed amending this
          Supplementary Terms Notice will achieve the Objective (and in this
          regard the Trustee may rely (amongst others) upon advice of tax
          lawyers), and each of the other parties to this Supplementary Terms
          Notice being reasonably satisfied that they will not be adversely
          affected by the proposed amendments to this Supplementary Terms
          Notice, each party to this Supplementary Terms Notice shall execute
          that amendment deed.

17.3 GROUP TAX LIABILITIES

     If the Trust becomes a member of a consolidated tax group and the head
     company of that consolidated tax group does not at that time, or at any
     subsequent time, provide evidence to the satisfaction of the Trustee (which
     may rely upon the advice of tax lawyers, amongst others) that the tax
     liabilities of the consolidated group are covered by a valid tax sharing
     agreement that apportions those tax liabilities to the Trustee on a basis
     acceptable to the Trustee (and the Trustee acknowledges that a nil
     allocation of the group tax liabilities will be acceptable to it), then:

     (a)  the Manager shall, as soon as is practicable, direct the Trustee to
          take steps to ensure that the Trust ceases to be a member of that
          consolidated group;

     (b)  the Manager shall promptly consult with the Trustee and each
          Designated Rating Agency to determine what changes, if any, are
          necessary to the cashflow allocation methodology in clause 5 to
          achieve the Objective; and

          (i)  within 2 months of such consultations commencing (or such longer
               time as the Trustee and each Designated Rating Agency permit),
               the Manager shall use reasonable endeavours to provide a written
               direction to the Trustee and a draft deed amending this
               Supplementary Terms Notice that, if executed, will achieve the
               Objective; and

          (ii) upon the Trustee being notified by the Manager that the draft
               deed amending this Supplementary Terms Notice will achieve the
               Objective (and in this regard the Trustee may rely (amongst
               others) upon advice of tax lawyers), and each of the other
               parties to this Supplementary Terms Notice being reasonably
               satisfied that they will not be adversely affected by the
               proposed amendments to this Supplementary Terms Notice, each
               party to this Supplementary Terms Notice shall execute that
               amendment deed.

17.4 EVIDENCE OF TAX SHARING AGREEMENT

     The Manager shall procure that the head company of a consolidated tax group
     of which the Trust becomes a member will:

     (a)  ensure that the group tax liabilities of that consolidated tax group
          are covered by a valid tax sharing agreement that apportions those tax
          liabilities to the Trustee on a basis acceptable to the Trustee (and
          the Trustee acknowledges that a nil allocation of the group tax
          liabilities will be acceptable to it); and

     (b)  provide evidence of such a tax sharing agreement being in place for
          the purposes of clause 17.3:

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          (i)  at the time the Trust becomes a member of the consolidated tax
               group; and

          (ii) on each occasion that there is any alteration, amendment or
               replacement of a tax sharing agreement covering the tax
               liabilities of the consolidated tax group.

17.5 OBJECTIVE

     (a)  Provided that the Trustee and each Designated Rating Agency receive
          written advice from an experienced and reputable tax lawyer or tax
          accountant to the effect that if the cashflow allocation methodology
          in clause 5, as amended by the deed amending this Supplementary Terms
          Notice, is followed, the Objective will be met, and each Designated
          Rating Agency confirms in writing that the change in Tax law or the
          deed amending this Supplementary Terms Notice will not result in the
          downgrade or withdrawal of rating of any Note:

          (i)  the Trustee shall not be obliged to obtain the consent of any
               Noteholder or the Residual Income Beneficiary to the deed
               amending this Supplementary Terms Notice; and

          (ii) subject to its terms, the deed amending this Supplementary Terms
               Notice shall be effective when executed, and may:

               (A)  permit the Trustee to accumulate a reserve out of moneys
                    that would otherwise be payable to the Residual Income
                    Beneficiary; and/or

               (B)  provide for Tax to be paid out of moneys that would
                    otherwise have been payable to the Residual Income
                    Beneficiary.

17.6 RESIDUAL INCOME BENEFICIARY

     Without limiting clause 17.5, in formulating a proposal to meet the
     Objective, the Manager shall have regard to the impact of any change to the
     cashflow allocation methodology to the Residual Income Beneficiary, and
     shall consider proposals made by the Residual Income Beneficiary that will
     enable the Trustee to meet the Objective.

18.  ACKNOWLEDGMENTS
--------------------------------------------------------------------------------

     (a)  The parties to the Transaction Documents agree that the Code of
          Banking Practice 2003 (CODE) does not apply to any Transaction
          Document or any transaction or service under any Transaction Document.

     (b)  The parties to the Transaction Documents (other than the Note Trustee)
          acknowledge that St. George is bound by the Code in respect of its
          dealings with some or all Mortgagors and agree that if the application
          of the Code to those dealings makes an amendment to any Transaction
          Document necessary or desirable, in the opinion of St. George, then
          the parties will negotiate such amendments in good faith.

19.  GOVERNING LAW
--------------------------------------------------------------------------------

     This Supplementary Terms Notice is governed by the laws of New South Wales.
     Each party submits to the non-exclusive jurisdiction of the courts
     exercising jurisdiction there.

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20.  COUNTERPARTS
--------------------------------------------------------------------------------

     This Supplementary Terms Notice may be executed in any number of
     counterparts. All counterparts together will be taken to constitute one
     instrument.

EXECUTED as a deed poll.

Each attorney executing this deed states that he or she has no notice,
revocation or suspension of his or her power of attorney.

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TRUSTEE

SIGNED SEALED AND DELIVERED for
PERPETUAL TRUSTEES CONSOLIDATED LIMITED
by its attorney under power of attorney
in the presence of:

----------------------------------------   -------------------------------------
Witness Signature                          Attorney Signature

----------------------------------------   -------------------------------------
Print Name                                 Print Name

MANAGER

SIGNED SEALED AND DELIVERED for CRUSADE
MANAGEMENT LIMITED by its attorney under
power of attorney in the presence of:

----------------------------------------   -------------------------------------
Witness Signature                          Attorney Signature

----------------------------------------   -------------------------------------
Print Name                                 Print Name

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APPROVED SELLER/SERVICER

SIGNED SEALED AND DELIVERED for
ST. GEORGE BANK LIMITED by its attorney
under power of attorney in the presence
of:

----------------------------------------   -------------------------------------
Witness Signature                          Attorney Signature

----------------------------------------   -------------------------------------
Print Name                                 Print Name

CUSTODIAN

SIGNED SEALED AND DELIVERED for
ST. GEORGE CUSTODIAL PTY LIMITED by its
attorney under power of attorney in the
presence of:

----------------------------------------   -------------------------------------
Witness Signature                          Attorney Signature

----------------------------------------   -------------------------------------
Print Name                                 Print Name

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SECURITY TRUSTEE

SIGNED SEALED AND DELIVERED for P.T.
LIMITED by its attorney under power of
attorney in the presence of:

----------------------------------------   -------------------------------------
Witness Signature                          Attorney Signature

----------------------------------------   -------------------------------------
Print Name                                 Print Name

NOTE TRUSTEE

EXECUTED for and on behalf of THE BANK
OF NEW YORK by:

----------------------------------------
Authorised Signatory

----------------------------------------
Print Name

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SCHEDULE 1

An Eligible Receivable means a Loan which, as at the Cut-Off Date for that Loan:

(a)  it is sourced from the Approved Seller's general portfolio of residential
     mortgage loans;

(b)  is secured by a Receivable Security that constitutes a first ranking
     mortgage over residential (owner-occupied or investment) land situated in
     capital city metropolitan areas or regional centres in Australia which is
     or will be registered under the Real Property Legislation, or where a
     Receivable Security is not, or will not be when registered be, a first
     ranking mortgage, the relevant Sale Notice includes an offer in relation to
     all prior ranking registered mortgages;

(c)  is secured by a Receivable Security over a Mortgaged Property which has
     erected on it a residential dwelling and which is required by the
     Receivable Agreement to be covered by general insurance by insurers
     approved in accordance with the Transaction Documents;

(d)  has an LVR:

     (i)  less than or equal to 95% for loans to owner occupiers;

     (ii) less than or equal to 95% for loans for investment properties which
          were approved on or after 25 July 2005; or

     (iii) less than or equal to 90% for loans for investment properties which
          were approved prior to 25 July 2005;

(e)  was not purchased by the Approved Seller but was approved and originated by
     the Approved Seller in the ordinary course of its business;

(f)  under which the relevant Obligor does not owe more than A$1,500,000;

(g)  the relevant Obligor in respect of which was required to repay the
     Receivable within 30 years of the Cut-Off Date;

(h)  no payment from the Obligor is in Arrears for more than 30 consecutive
     days;

(i)  the sale of an equitable interest, or the sale of an equitable interest, in
     any related Receivable Security, does not contravene or conflict with any
     law;

(j)  together with the related Receivable Security, has been or will be stamped,
     or has been taken by the relevant stamp duties authority to be stamped,
     with all applicable duty;

(k)  amortises in full by the end of its term;

(l)  is secured by a Receivable Security that is covered by mortgage insurance
     from a Mortgage Insurer under the relevant Mortgage Insurance Policy for
     100% of amounts outstanding under the relevant loans (but not including
     timely payment cover);

(m)  complies in all material respects with applicable laws, including the
     Consumer Credit Legislation;

(n)  was fully drawn as at its origination;

(o)  is subject to the terms and conditions of the Approved Seller's Fixed Rate
     Loans, which bear a fixed rate of interest for up to 5 years as of the cut
     off date; its Great Australian Home Loan product; its

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     Essential Home Loan product, or its Standard Variable Rate Home Loan
     product, including sub products of Loyalty Loans, which are entitled to a
     "loyalty" rate due to a home loan relationship with the Approved Seller of
     5 years or more and Discount Variable Rate Home Loans and Introductory
     Fixed Rate Home Loans, which are available only for new borrowers to
     St. George Bank; and

(p)  has a maturity date at least one year before the maturity date of the
     Notes.

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Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
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SCHEDULE 2

APPLICATION FOR A$ NOTES

CRUSADE GLOBAL TRUST NO. 2 OF 2005
--------------------------------------------------------------------------------

To: Perpetual Trustees Consolidated Limited as trustee of the Crusade Global
Trust No. 2 of 2005 (the TRUSTEE)

From:                                                 (ABN [*])
      -----------------------------------------------
                          (Name)

      of                                            (the APPLICANT).
         ------------------------------------------
                          (Address)

APPLICATION
--------------------------------------------------------------------------------

The Applicant applies for the following [Class A-2 Notes/Class B Notes/Class C
Notes] (delete whichever is not applicable) (the NOTES) to be issued by the
Trustee as trustee of the Crusade Global Trust No. 2 of 2005 (the TRUST) under
the Master Trust Deed dated 14 March 1998 (as amended from time to time)
establishing the Crusade Trusts (the MASTER TRUST DEED):

1. The Notes applied for are:

[*]

2. The amount of Notes applied for is:

[*]

APPLICANT BOUND
--------------------------------------------------------------------------------

The Applicant agrees that the Notes will be issued subject to, and agrees to be
bound by, the provisions of the Master Trust Deed, the Supplementary Terms
Notice in relation to the Notes dated [13] September 2005 and the Security Trust
Deed dated [5] September 2005 in relation to the Trust.

ACKNOWLEDGMENT BY APPLICANT
--------------------------------------------------------------------------------

The Applicant acknowledges that the liability of the Trustee to make payments in
respect of the Notes is limited to its right of indemnity from the assets of the
Trust from time to time available to make such payments under the Master Trust
Deed.

The Applicant further acknowledges that:

(a)  it has independently and without reliance on St. George Bank Limited
     (ST. GEORGE), the Trustee, the Manager or any other person (including
     without reliance on any materials prepared or distributed by any of the
     above) made its own assessment and investigations regarding its investment
     in the Notes;

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(b)  it understands that the Notes do not represent deposit or other liabilities
     of St. George or Associates of St. George;

(c)  the Applicant's holding of the Notes is subject to investment risk,
     including possible delays in repayment and loss of income and principal
     invested; and

(d)  neither St. George nor any Associate of St. George in any way stands behind
     the capital value and/or performance of the Notes or the Assets of the
     Trust except to the limited extent provided in the Transaction Documents
     for the Trust.

GENERAL
--------------------------------------------------------------------------------

Payments due under the Notes may be made:

o    by cheque posted to the above address

o    to the credit of the following account:

     Name of Bank:
     Address of Bank:
     Account Details:
     Account No.:
     Name of Account:

A Marked Note Transfer of the abovementioned Notes is required: Yes/No.

Applicant's Tax File Number:

INTERPRETATION
--------------------------------------------------------------------------------

Each expression used in this Application for A$ Notes that is not defined has
the same meaning as in the Master Trust Deed or the relevant Supplementary Terms
Notice.

Dated:

SIGNED:
        -----------------------------------

*    This Application for A$ Notes together with a cheque for the amount of the
     A$ Notes applied for should be sent to the Trustee at the address above.

*    Where the Applicant is a trustee, this Application for A$ Notes must be
     completed in the name of the trustee and signed by the trustee without
     reference to the trust.

*    Where this Application for A$ Notes is executed by a corporation, it must
     be executed either under common seal by two directors or a director and a
     secretary or under a power of attorney.

*    If this Application for A$ Notes is signed under a power of attorney, the
     attorney is taken, upon signing, to certify that it has not received notice
     of revocation of that power of attorney. A certified copy of the power of
     attorney must be lodged with this Application for A$ Notes.

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                                                                        Page 110

Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
--------------------------------------------------------------------------------

SCHEDULE 3

NOTE ACKNOWLEDGMENT

CRUSADE GLOBAL TRUST NO. 2 OF 2005
--------------------------------------------------------------------------------

CLASS:

INITIAL INVESTED AMOUNT:

INTEREST RATE:

INTEREST PAYMENT DATES:

PRINCIPAL AMORTISATION DATES:

FINAL MATURITY DATE:

This confirms that:

NOTEHOLDER:

ABN (if applicable):

ADDRESS:

appears in the Register as the holder of the abovementioned Notes (the NOTES).

The Notes are issued by Perpetual Trustees Consolidated Limited in its capacity
as trustee of the abovementioned Trust (the TRUST) (the TRUSTEE) under a Master
Trust Deed dated 14 March 1998 (as amended from time to time) establishing the
Crusade Trusts (the MASTER TRUST DEED).

The Notes are issued subject to the provisions of the Master Trust Deed, the
Supplementary Terms Notice in relation to the Notes dated [13] September 2005
and the Security Trust Deed dated [5] September 2005. A copy of the Master Trust
Deed, the Supplementary Terms Notice and the Security Trust Deed are available
for inspection by Noteholders at the offices of Crusade Management Limited (ABN
90 072 715 916) at St. George House, 14-16 Montgomery Street, Kogarah, New South
Wales 2217.

The Trustee's liability to make payments in respect of the Notes is limited to
its right of indemnity from the Assets of the Trust from time to time available
to make such payments under the Master Trust Deed and Supplementary Terms
Notice. All claims against the Trustee in relation to the Notes may only be
satisfied out of the Assets of the Trust except in the case of (and to the
extent of) any fraud, negligence or wilful default on the part of the Trustee or
its officers, employees, any agent or delegate employed by the Trustee to carry
out any transactions contemplated by the Master Trust Deed, the Supplementary
Terms Notice in relation to the Notes and the Security Trust Deed referred to
above.

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                                                                        Page 111

Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
--------------------------------------------------------------------------------

Each Noteholder is required to accept any distribution of moneys under the
Security Trust Deed in full and final satisfaction of all moneys owing to it,
and any debt represented by any shortfall that exists after any such final
distribution is extinguished.

The Trustee shall not be liable to satisfy any obligations or liabilities from
its personal assets except in the case (and to the extent) of any fraud,
negligence or Default on the part of the Trustee or its officers, employees or
an agent or delegate employed by the Trustee to carry out any transactions
contemplated by the Master Trust Deed, the Supplementary Terms Notice in
relation to the Notes and the Security Trust Deed referred to above. Neither the
Trustee nor the Manager guarantees the payment of interest or the repayment of
principal due on the Notes.

This Note Acknowledgment is not a certificate of title and the Register is the
only conclusive evidence of each abovementioned Noteholder's entitlement to
Notes.

Transfers of Notes must be under a Note Transfer in the form contained in
Schedule 4 to the Supplementary Terms Notice (copies of which are available from
then Trustee at its abovementioned address). Executed Note Transfers must be
submitted to the Trustee.

Each expression used in this Note Acknowledgment that is not defined has the
same meaning as in the Master Trust Deed.

This Note Acknowledgment and the Notes to which it relates will be governed by
the laws of the New South Wales.

Dated:

Executed in New South Wales for and on behalf of Perpetual Trustees Consolidated
Limited

----------------------------------------
Authorised Signatory

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                                                                        Page 112

Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
--------------------------------------------------------------------------------

SCHEDULE 4

NOTE TRANSFER AND ACCEPTANCE

CRUSADE GLOBAL TRUST NO. 2 OF 2005
--------------------------------------------------------------------------------

To: Perpetual Trustees Consolidated Limited                    Date Lodged [*]
    as trustee of the                                          REGISTRY USE ONLY
    Crusade Global Trust No. 2 of 2005 (the TRUSTEE)

TRANSFEROR

(Full name, ACN/ABN (if applicable) and address):

(please print)

APPLIES TO ASSIGN AND TRANSFER TO

TRANSFEREE

(Full name, ACN/ABN (if applicable) and address):

(please print)

and its/their executors, administrators or assigns

The following Notes in the Crusade Global Trust No. 2 of 2005
Number of Notes:
Class:
Initial Invested Amount:
Interest Payment Dates:
Principal Amortisation Dates:
Final Maturity Date:

Consideration Payable: $[*]

and all my/our/its property and interests in rights to those Notes and to the
interest accrued on them.

TRANSFEROR                                             '
           ---------------------------------------------
(Signature: see Notes)

WITNESS                                       Date:
        -----------------------------------

TRANSFEREE                                             '
           ---------------------------------------------
(Signature: see Notes)

WITNESS                                       Date:
        -----------------------------------

PAYMENTS (Tick where appropriate)

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                                                                        Page 113

Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
--------------------------------------------------------------------------------

*    In accordance with existing instructions (existing holders only)

*    By cheque posted to the above address

*    By credit to the following account in Australia in the name of the
     Transferee only

Tax File Number (if applicable):

Authorised signature of Transferee
                                   ------------------------------
Date:

NOTES:

1.   The Transferor and the Transferee acknowledge that the transfer of the
     Notes specified in this Transfer and Acceptance (the NOTES) shall only take
     effect on the entry of the Transferee's name in the Register as the holder
     of the Notes.

2.   The Transferee agrees to accept the Notes subject to the provisions of the
     Master Trust Deed dated 14 March 1998 (as amended from time to time)
     establishing the Crusade Trusts (the TRUST DEED), the Supplementary Terms
     Notice in relation to the Notes dated [13] September 2005 and the related
     Security Trust Deed dated [5] September 2005.

3.   The Transferee acknowledges that it has independently and without reliance
     on St. George Bank Limited (ABN 92 055 513 070), the Trustee, Crusade
     Management Limited (ABN 90 072 715 916) (the MANAGER) or any other person
     (including without reliance on any materials prepared or distributed by any
     of the above) made its own assessment and investigations regarding its
     investment in the Notes.

4.   The Trustee's liability to make payments in respect of the Notes is limited
     to its right of indemnity from the assets of the abovementioned Trust from
     time to time available to make such payments under the Trust Deed.

5.   Where the Transferor and/or the Transferee is a trustee, this Note Transfer
     must be completed in the name of the trustee and signed by the trustee
     without reference to the trust.

6.   Where this Note Transfer is executed by a corporation, it must be executed
     either under common seal by two directors or a director and a secretary or
     under a power of attorney.

7.   If this Transfer and Acceptance is signed under a power of attorney, the
     attorney certifies that it has not received notice of revocation of that
     power of attorney. A certified copy of the power of attorney must be lodged
     with this Note Transfer.

8.   This Note Transfer must be lodged with the Trustee for registration.

9.   The Trustee may, in the manner and for the period specified in the Trust
     Deed and any relevant Supplementary Terms Notice, close the Register. The
     total period that the Register may be closed will not exceed 30 days (or
     such other period agreed to by the Manager) in aggregate in any calendar
     year. No Note Transfer received after 4:00pm Sydney time on the day of
     closure of the Register or whilst the Register is closed will be registered
     until the Register is re-opened.

10.  If the Transferee is a non-resident for Australian taxation purposes,
     withholding tax will be deducted from all interest payments unless an
     exemption is provided to the Trustee or withholding tax is no longer
     payable as a result of any change in the relevant Australian laws.

--------------------------------------------------------------------------------
                                                                        Page 114

Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
--------------------------------------------------------------------------------

11.  The Notes covered hereby have not been registered under the United States
     Securities Act of 1933 as amended (the SECURITIES ACT) and may not be
     offered and sold within the United States or to or for the account or
     benefit of United States persons:

          (i)  as part of their distribution at any time; or

          (ii) otherwise until after the 40 day distribution compliance period
               of such Notes, as determined and certified by the Dealer(s),

          except in either case in accordance with Regulation S under the
          Securities Act. Terms used above have the meanings given to them by
          Regulation S.

12.  No transfer may be made of any Notes in circumstances which would fail to
     comply with all applicable provisions of the Financial Services and Markets
     Act 2000 and all rules and regulations made thereunder.

13.  [INSERT ANY RESTRICTIONS ON THE TRANSFER OF NOTES.]

[MARKING WHERE CLAUSE 7.15 OF THE MASTER TRUST DEED APPLIES]

14.  The Trustee certifies that the Transferor is inscribed in the Register as
     the holder of the Notes specified in this Note Transfer and that it will
     not register any transfer of such Notes other than under this Note Transfer
     before [INSERT DATE].

Dated:

For and on behalf of Perpetual Trustees Consolidated Limited as trustee of the
Crusade Global Trust No. 2 of 2005

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

--------------------------------------------------------------------------------
                                                                        Page 115

Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
--------------------------------------------------------------------------------

SCHEDULE 5

                       FORM OF ANNUAL SERVICER COMPLIANCE
                              OFFICER'S CERTIFICATE

The undersigned, a duly authorized representative of St. George Bank Limited, as
Servicer ("St. George Bank" or the "Servicer"), pursuant to the agreement
between Perpetual Trustees Consolidated Limited, St. George Bank Limited and
Crusade Management Limited, dated [__], (the "Agreement"), does hereby certify
that:

          1.   Capitalized terms used but not defined in this Officer's
               Certificate have their respective meanings set forth in the
               Agreement, unless the context requires otherwise or unless
               otherwise defined in this Officer's Certificate.

          2.   As of the date hereof, St. George Bank is the Servicer of Crusade
               Global Trust No. 2 of 2005 (the TRUST).

          3.   This Officer's Certificate is delivered pursuant to the
               Agreement.

          4.   A review of the activities of the Servicer during the calendar
               year ended September 30, _______ and of its performance under the
               pooling and servicing agreement or similar agreements was made
               under my supervision.

          5.   Based on such review, to my knowledge, the Servicer has fulfilled
               its obligations under the pooling and servicing agreements or
               similar agreements relating to the Trust[s] (including the Master
               Trust Deed, the Servicing Agreement and [the/each] Supplementary
               Terms Notice relating to [the/a] Trust) throughout such calendar
               year and, except as set forth in paragraph 6 below.

          6.   The following is a description of any exceptions to paragraph 5
               above:

--------------------------------------------------------------------------------
                                                                        Page 116

Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the undersigned, a duly authorized officer of the Servicer,
has duly executed this Officer's Certificate this _____ day of ____________,
___.

                                        ST. GEORGE BANK LIMITED

                                        as Servicer

                                        By:
                                           -------------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

--------------------------------------------------------------------------------
                                                                        Page 117

Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
--------------------------------------------------------------------------------

SCHEDULE 6

INDEPENDENT AUDITOR'S ANNUAL SERVICER COMPLIANCE CERTIFICATE TO THE
DIRECTORS OF CRUSADE MANAGEMENT LIMITED
--------------------------------------------------------------------------------

SCOPE

We have reviewed St. George Bank Limited's (the "Servicer's") activities for the
purpose of determining its compliance with the servicing standards contained in
the Master Trust Deed dated 14 March 1998, the Crusade Euro Trust Servicing
Agreement dated 19 March 1998, and the Supplementary Terms Notice (collectively
the "Documents"), attached as Appendix 1, in relation to the Crusade Global
Trust No. 2 of 2005 (the "Trust") for the year ended 30 September [*], in
accordance with the statement by the Division of Corporation Finance of the
Securities and Exchange Commission dated [*], and our engagement letter dated
[*].

We have reviewed the servicing standards contained in the Documents to enable us
to report on whether those servicing standards are similar to those contained in
the Uniform Single Attestation Program for Mortgage Bankers ("USAP"), attached
as Appendix 2, which establishes a minimum servicing standard for the asset
backed securities market in the United States of America. No equivalent of the
USAP exists in Australia.

The management of the Servicer is responsible for maintaining an effective
internal control structure including internal control policies and procedures
relating to the servicing of mortgage loans. We have conducted an independent
review of the servicing standards included in Appendix 1, in order to express a
statement on the Servicer's compliance with them to Crusade Management Limited.

Our review of the servicing standards has been conducted in accordance with
Australian Auditing Standards applicable to performance audits and accordingly
included such tests and procedures as we considered necessary in the
circumstances. In conducting our review we have also had regard to the guidance
contained in the USAP. These procedures have been undertaken to enable us to
report on whether anything has come to our attention to indicate that there has
been significant deficiencies in the Servicer's compliance with the servicing
standards contained in the Documents for the year ended 30 September [*].

Our review did not include an assessment of the adequacy of the servicing
standards themselves.

This statement has been prepared for the use of Crusade Management Limited as at
30 September [*] in accordance with the requirements of the statement by the
Division of Corporation Finance of the Securities and Exchange Commission dated
[*], and the engagement letter dated [*]. We disclaim any assumption of
responsibility for any reliance on this review statement, to any person other
than Crusade Management Limited.

STATEMENT

Based on our review;

o    nothing has come to our attention to indicate that there has been any
     significant deficiencies in St. George Bank Limited's compliance with the
     servicing standards contained in the Master Trust Deed dated 14 March 1998,
     the Crusade Euro Trust Servicing Agreement dated 19 March 1998, and the
     Supplementary

--------------------------------------------------------------------------------
                                                                        Page 118

Supplementary Terms Notice                         [Allens Arthur Robinson LOGO]
--------------------------------------------------------------------------------

     Terms Notice, attached as Appendix 1, in respect of the Crusade Global
     Trust No. 2 of 2005 (the "Trust") for the year ended 30 September [*];

o    the servicing standards contained in the Master Trust Deed dated 14 March
     1998, the Crusade Euro Trust Servicing Agreement dated 19 March 1998, and
     the Supplementary Terms Notice are similar to the minimum servicing
     standards contained in the Uniform Single Attestation Program for Mortgage
     Bankers ("USAP"), except for the following:

          o    Section III of USAP sets minimum servicing standards in respect
               of Disbursements. In respect of the Trust, this function is the
               responsibility of the Manager.

[Name of organisation]

[Name and title of signatory]

Place:

Date:

--------------------------------------------------------------------------------
                                                                        Page 119

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