Document:

<PAGE>

                                                                  EXECUTION COPY

             STRUCTURED ASSET SECURITIES CORPORATION, as Depositor,

                  AURORA LOAN SERVICES LLC, as Master Servicer,

                     WELLS FARGO BANK, NATIONAL ASSOCIATION,

                           as Securities Administrator

                                       and

                 HSBC BANK USA, NATIONAL ASSOCIATION, as Trustee

                                   ----------

                                 TRUST AGREEMENT

                           Dated as of January 1, 2005

                                   ----------

                 STRUCTURED ADJUSTABLE RATE MORTGAGE LOAN TRUST
                       MORTGAGE PASS-THROUGH CERTIFICATES
                                  SERIES 2005-1

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                                TABLE OF CONTENTS

<TABLE>
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                                                                                                               PAGE
                                                                                                               ----
<S>                                                                                                              <C>
ARTICLE I DEFINITIONS.............................................................................................9

   Section 1.01.     Definitions..................................................................................9
   Section 1.02.     Calculations Respecting Mortgage Loans......................................................47

ARTICLE II DECLARATION OF TRUST; ISSUANCE OF CERTIFICATES........................................................48

   Section 2.01.     Creation and Declaration of Trust Fund; Conveyance of Mortgage Loans........................48
   Section 2.02.     Acceptance of Trust Fund by Trustee: Review of Documentation for Trust Fund.................52
   Section 2.03.     Representations and Warranties of the Depositor.............................................53
   Section 2.04.     Discovery of Breach.........................................................................55
   Section 2.05.     Repurchase, Purchase or Substitution of Mortgage Loans......................................56
   Section 2.06.     Grant Clause................................................................................57

ARTICLE III THE CERTIFICATES.....................................................................................57

   Section 3.01.     The Certificates............................................................................57
   Section 3.02.     Registration................................................................................59
   Section 3.03.     Transfer and Exchange of Certificates.......................................................59
   Section 3.04.     Cancellation of Certificates................................................................65
   Section 3.05.     Replacement of Certificates.................................................................65
   Section 3.06.     Persons Deemed Owners.......................................................................65
   Section 3.07.     Temporary Certificates......................................................................66
   Section 3.08.     Appointment of Paying Agent.................................................................66
   Section 3.09.     Book-Entry Certificates.....................................................................66

ARTICLE IV ADMINISTRATION OF THE TRUST FUND......................................................................68

   Section 4.01.     Collection Account..........................................................................68
   Section 4.02.     Application of Funds in the Collection Account..............................................70
   Section 4.03.     Reports to Certificateholders...............................................................72
   Section 4.04.     Certificate Account.........................................................................75
   Section 4.05.     Determination of LIBOR......................................................................76

ARTICLE V DISTRIBUTIONS TO HOLDERS OF CERTIFICATES...............................................................78

   Section 5.01.     Distributions Generally.....................................................................78
   Section 5.02.     Distributions from the Certificate Account..................................................78
   Section 5.03.     Allocation of Realized Losses...............................................................87
   Section 5.04.     Advances by the Master Servicer and the Securities Administrator............................89
   Section 5.05.     Compensating Interest Payments..............................................................90
   Section 5.06.     Cap Agreement Reserve Fund..................................................................90

ARTICLE VI CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR;  EVENTS OF DEFAULT...........................92
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<TABLE>
<S>                                                                                                             <C>
   Section 6.01.     Duties of Trustee and Securities Administrator..............................................92
   Section 6.02.     Certain Matters Affecting the Trustee and the Securities Administrator......................94
   Section 6.03.     Trustee and Securities Administrator Not Liable for Certificates............................96
   Section 6.04.     Trustee and Securities Administrator May Own Certificates...................................96
   Section 6.05.     Eligibility Requirements for Trustee and Securities Administrator...........................96
   Section 6.06.     Resignation and Removal of Trustee and Securities Administrator.............................97
   Section 6.07.     Successor Trustee and Successor Securities Administrator....................................98
   Section 6.08.     Merger or Consolidation of Trustee or Securities Administrator.  ...........................98
   Section 6.09.     Appointment of Co-Trustee, Separate Trustee or Custodian....................................99
   Section 6.10.     Authenticating Agents......................................................................100
   Section 6.11.     Indemnification of Trustee and Securities Administrator....................................101
   Section 6.12.     Fees and Expenses of Securities Administrator, Trustee and Custodian.......................102
   Section 6.13.     Collection of Monies.......................................................................102
   Section 6.14.     Events of Default; Securities Administrator To Act;
                     Appointment of Successor...................................................................102
   Section 6.15.     Additional Remedies of Trustee Upon Event of Default.......................................107
   Section 6.16.     Waiver of Defaults.........................................................................107
   Section 6.17.     Notification to Holders....................................................................108
   Section 6.18.     Directions by Certificateholders and Duties of Trustee
                     During Event of Default....................................................................108
   Section 6.19.     Action Upon Certain Failures of the Master Servicer and Upon Event of Default..............108
   Section 6.20.     Preparation of Tax Returns and Other Reports...............................................108
   Section 6.21.     Reporting Requirements of the Commission...................................................110

ARTICLE VII PURCHASE AND TERMINATION OF THE TRUST FUND..........................................................110

   Section 7.01.     Termination of Trust Fund Upon Repurchase or Liquidation of All Mortgage Loans.............110
   Section 7.02.     Procedure Upon Termination of Trust Fund...................................................111
   Section 7.03.     Additional Requirements under the REMIC Provisions.........................................112

ARTICLE VIII RIGHTS OF CERTIFICATEHOLDERS.......................................................................113

   Section 8.01.     Limitation on Rights of Holders............................................................113
   Section 8.02.     Access to List of Holders..................................................................113
   Section 8.03.     Acts of Holders of Certificates............................................................114

ARTICLE IX ADMINISTRATION AND SERVICING OF MORTGAGE LOANS BY THE MASTER SERVICER................................115

   Section 9.01.     Duties of the Master Servicer..............................................................115
   Section 9.02.     Master Servicer Fidelity Bond and Master Servicer Errors and Omissions Insurance Policy....115
   Section 9.03.     Master Servicer's Financial Statements and Related Information.............................116
   Section 9.04.     Power to Act; Procedures...................................................................116
   Section 9.05.     Servicing Agreements Between the Master Servicer and Servicers; Enforcement of Servicers'
                     Obligations................................................................................118
   Section 9.06.     Collection of Taxes, Assessments and Similar Items.........................................119
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<TABLE>
<S>                                                                                                             <C>
   Section 9.07.     Termination of Servicing Agreements; Successor Servicers...................................120
   Section 9.08.     Master Servicer Liable for Enforcement.....................................................120
   Section 9.09.     No Contractual Relationship Between Servicers and Trustee or Depositor.....................120
   Section 9.10.     Assumption of Servicing Agreement by Securities Administrator..............................121
   Section 9.11.     "Due-on-Sale" Clauses; Assumption Agreements...............................................121
   Section 9.12.     Release of Mortgage Files..................................................................122
   Section 9.13.     Documents, Records and Funds in Possession of Master Servicer
                     To Be Held for Trustee.....................................................................123
   Section 9.14.     Representations and Warranties of the Master Servicer......................................124
   Section 9.15.     Closing Certificate and Opinion............................................................126
   Section 9.16.     Standard Hazard and Flood Insurance Policies...............................................127
   Section 9.17.     Presentment of Claims and Collection of Proceeds...........................................127
   Section 9.18.     Maintenance of the Primary Mortgage Insurance Policies.....................................127
   Section 9.19.     Trustee To Retain Possession of Certain Insurance Policies and Documents...................128
   Section 9.20.     Realization Upon Defaulted Mortgage Loans..................................................128
   Section 9.21.     Compensation to the Master Servicer........................................................129
   Section 9.22.     REO Property...............................................................................130
   Section 9.23.     [Reserved].................................................................................130
   Section 9.24.     Reports to the Trustee and the Securities Administrator....................................130
   Section 9.25.     Annual Officer's Certificate as to Compliance..............................................131
   Section 9.26.     Annual Independent Accountants' Servicing Report...........................................132
   Section 9.27.     Merger or Consolidation....................................................................132
   Section 9.28.     Resignation of Master Servicer.............................................................133
   Section 9.29.     Assignment or Delegation of Duties by the Master Servicer..................................133
   Section 9.30.     Limitation on Liability of the Master Servicer and Others..................................133
   Section 9.31.     Indemnification; Third-Party Claims........................................................134

ARTICLE X REMIC ADMINISTRATION..................................................................................135

   Section 10.01.    REMIC and Grantor Trust Administration.....................................................135
   Section 10.02.    Prohibited Transactions and Activities.....................................................139
   Section 10.03.    Indemnification with Respect to Certain Taxes and Loss of REMIC Status.....................140
   Section 10.04.    REO Property...............................................................................140

ARTICLE XI MISCELLANEOUS PROVISIONS.............................................................................141

   Section 11.01.    Binding Nature of Agreement; Assignment....................................................141
   Section 11.02.    Entire Agreement...........................................................................141
   Section 11.03.    Amendment..................................................................................141
   Section 11.04.    Voting Rights..............................................................................142
   Section 11.05.    Provision of Information...................................................................143
   Section 11.06.    Governing Law..............................................................................143
   Section 11.07.    Notices....................................................................................143
   Section 11.08.    Severability of Provisions.................................................................144
   Section 11.09.    Indulgences; No Waivers....................................................................144
   Section 11.10.    Headings Not To Affect Interpretation......................................................144
   Section 11.11.    Benefits of Agreement......................................................................144
   Section 11.12.    Special Notices to the Rating Agencies.....................................................144
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<TABLE>
   <S>                                                                                                          <C>
   Section 11.13.    Counterparts...............................................................................145
   Section 11.14.    Transfer of Servicing......................................................................145
</TABLE>

                                                                              iv
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                                   ATTACHMENTS

<TABLE>
<S>               <C>
Exhibit A         Forms of Certificates
Exhibit B-1       Form of Initial Certification
Exhibit B-2       Form of Interim Certification
Exhibit B-3       Form of Final Certification
Exhibit B-4       Form of Endorsement
Exhibit C         Request for Release of Documents and Receipt
Exhibit D-l       Form of Residual Certificate Transfer Affidavit (Transferee)
Exhibit D-2       Form of Residual Certificate Transfer Affidavit (Transferor)
Exhibit E         Servicing Agreements
Exhibit F         Form of Rule 144A Transfer Certificate
Exhibit G         Form of Purchaser's Letter for Institutional Accredited Investors
Exhibit H         Form of ERISA Transfer Affidavit
Exhibit I         Monthly Remittance Advice
Exhibit J         Monthly Electronic Data Transmission
Exhibit K         Custodial Agreements
Exhibit L-1       Form of Transfer Certificate for Transfer from Restricted Global Security to Regulation S
                  Global Security
Exhibit L-2       Form of Transfer Certificate for Transfer from Regulation S Global Security to Restricted
                  Global Security
Exhibit M         Form of Certification to be Provided to the Depositor and the Master Servicer by the Trustee
Exhibit N         Form of Cap Agreement

Schedule A        Mortgage Loan Schedule
</TABLE>

<PAGE>

        This TRUST AGREEMENT, dated as of January 1, 2005 (the "Agreement"), is
by and among STRUCTURED ASSET SECURITIES CORPORATION, a Delaware corporation, as
depositor (the "Depositor"), AURORA LOAN SERVICES LLC, as master servicer (the
"Master Servicer"), WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking
corporation, as securities administrator (the "Securities Administrator") and
HSBC BANK USA, NATIONAL ASSOCIATION, a national banking association, as trustee
(the "Trustee").

                              PRELIMINARY STATEMENT

        The Depositor has acquired the Mortgage Loans from Lehman Brothers
Holdings (the "Seller"), and at the Closing Date is the owner of the Mortgage
Loans and the other property being conveyed by it to the Trustee for inclusion
in the Trust Fund. On the Closing Date, the Depositor will acquire the
Certificates from the Trust Fund as consideration for its transfer to the Trust
Fund of the Mortgage Loans and the other property constituting the Trust Fund.
The Depositor has duly authorized the execution and delivery of this Agreement
to provide for the conveyance to the Trustee of the Mortgage Loans and the other
property constituting the Trust Fund. All covenants and agreements made by the
Depositor, the Master Servicer, the Securities Administrator and the Trustee
herein with respect to the Mortgage Loans and the other property constituting
the Trust Fund are for the benefit of the Holders from time to time of the
Certificates. The Depositor, the Securities Administrator and the Master
Servicer are entering into this Agreement, and the Trustee is accepting the
Trust Fund created hereby, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged.

        As provided herein, the Trustee shall elect that the Trust Fund (other
than the rights to Prepayment Penalty Amounts, the Cap Agreements and the Cap
Agreement Reserve Fund) be treated for federal income tax purposes as comprising
three real estate mortgage investment conduits (each a "REMIC" or, in the
alternative, REMIC 1, REMIC 2 and REMIC 3, (REMIC 3 also being referred to
herein as the "Upper Tier REMIC")). As is described in Section 10.01 hereof, the
Trust Fund will also be treated for federal income tax purposes as including
three grantor trusts. Each Certificate, other than the Class P, Class CX, Class
Z and Class R Certificates, and each of the Class Z Components, represents
ownership of a regular interest in the Upper Tier REMIC for purposes of the
REMIC Provisions. The Class R Certificate represents ownership of the sole class
of residual interest in each of REMIC 1, REMIC 2 and REMIC 3 for purposes of the
REMIC Provisions. The Upper Tier REMIC shall hold as assets the several classes
of uncertificated REMIC 2 Regular Interests. Each REMIC 2 Regular Interest is
hereby designated as a regular interest in REMIC 2. REMIC 2 shall hold as assets
the several classes of uncertificated REMIC 1 Regular Interests. Each REMIC 1
Regular Interest is hereby designated as a regular interest in REMIC 1. REMIC 1
shall hold as assets all property of the Trust Fund other than the REMIC 1
Interests, the REMIC 2 Interests, the REMIC 3 Regular Interests, the REMIC 3
Residual Interest, the Cap Agreements, the Cap Agreement Reserve Fund and the
rights to Prepayment Penalty Amounts.

REMIC 1

        The following table specifies the class designation, interest rate,
principal amount and related Mortgage Pool for each class of REMIC 1 Interests.

<PAGE>

    REMIC 1                             Initial Class or     Related Pool
Class Designation     Interest Rate     Principal Amount       or Pools
------------------   -------------   --------------------   ------------
Class LT1-1A              (1)        $       331,611.7238      Pool 1
Class LT1-1B              (2)        $     4,949,312.7238      Pool 1
Class LT1-2A              (1)        $       128,625.5007      Pool 2
Class LT1-2B              (3)        $     1,919,635.5007      Pool 2
Class LT1-3A              (1)        $        74,124.5890      Pool 3
Class LT1-3B              (4)        $     1,106,304.5890      Pool 3
Class LT1-4A              (1)        $        74,072.0602      Pool 4
Class LT1-4B              (5)        $     1,105,502.0602      Pool 4
Class LT1-5A              (1)        $       302,203.3340      Pool 5
Class LT1-5B              (6)        $     4,510,453.3340      Pool 5
Class LT1-6A              (1)        $        47,696.3770      Pool 6
Class LT1-6B              (7)        $       711,856.3770      Pool 6
Class LT1-Z               (1)        $ 1,415,045,060.3006      N/A
Class LT1-R               (8)                 (8)              N/A

----------
     (1)  For any Distribution Date, the interest rate for the Class LT1-1A,
          Class LT1-2A, Class LT1-3A, Class LT1-4A, Class LT1-5A, Class LT1-6A
          and Class LT1-Z Interest shall be a per annum rate equal to the
          weighted average of the Net Mortgage Rates of the Mortgage Loans at
          the beginning of the related Due Period, weighted on the basis of
          their respective Scheduled Principal Balances.

     (2)  For any Distribution Date, the interest rate for the Class LT1-1B
          Interest shall be the Net WAC for Pool 1 for such Distribution Date.

     (3)  For any Distribution Date, the interest rate for the Class LT1-2B
          Interest shall be the Net WAC for Pool 2 for such Distribution Date.

     (4)  For any Distribution Date, the interest rate for the Class LT1-3B
          Interest shall be the Net WAC for Pool 3 for such Distribution Date.

     (5)  For any Distribution Date, the interest rate for the Class LT1-4B
          Interest shall be the Net WAC for Pool 4 for such Distribution Date.

     (6)  For any Distribution Date, the interest rate for the Class LT1-5B
          Interest shall be the Net WAC for Pool 5 for such Distribution Date.

     (7)  For any Distribution Date, the interest rate for the Class LT1-6B
          Interest shall be the Net WAC for Pool 6 for such Distribution Date.

     (8)  The Class LT1-R Interest shall represent the sole class of residual
          interest in REMIC 1. The Class LT1-R Interest will not have a
          principal amount or an interest rate. The Class LT1-R Interest shall
          be represented by the Class R Certificate.

        Distributions shall be deemed to be made to the REMIC 1 Regular
Interests first, so as to keep the Uncertificated Principal Balance of each
REMIC 1 Regular Interest ending with the designation "B" equal to 1% of the
aggregate Scheduled Principal Balance of the Mortgage Loans in the related
Mortgage Pool; second, to each REMIC 1 Regular Interest ending with the
designation "A" so that the Uncertificated Principal Balance of each such REMIC
1 Regular Interest is equal to 1% of the excess of (x) the aggregate Scheduled
Principal Balance of the Mortgage Loans in the related Mortgage Pool over (y)
the aggregate Class Principal Amounts of the Certificate Group related to such
Mortgage Pool (except that if 1% of any such excess is

                                        2
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greater than the principal amount of the corresponding REMIC 1 Regular Interest
ending with the designation "A", the least amount of principal shall be
distributed to such REMIC 1 Regular Interests such that the REMIC 1 Subordinated
Balance Ratio is maintained); and finally, any remaining principal to the Class
LT1-Z Interest. Realized Losses shall be applied after all distributions have
been made on each Distribution Date first, so as to keep the Uncertificated
Principal Balance of each REMIC 1 Regular Interest ending with the designation
"B" equal to 1% of the aggregate Scheduled Principal Balance of the Mortgage
Loans in the related Mortgage Pool; second, to each REMIC 1 Regular Interest
ending with the designation "A" so that the Uncertificated Principal Balance of
each such REMIC 1 Regular Interest is equal to 1% of the excess of (x) the
aggregate Scheduled Principal Balance of the Mortgage Loans in the related
Mortgage Pool over (y) the aggregate Class Principal Amounts of the Certificate
Group related to such Mortgage Pool (except that if 1% of any such excess is
greater than the principal amount of the corresponding REMIC 1 Regular Interest
ending with the designation "A", the least amount of Realized Losses shall be
allocated to such REMIC 1 Regular Interests such that the REMIC 1 Subordinated
Balance Ratio is maintained); and third, the remaining Realized Losses shall be
allocated to the Class LT1-Z Interest. All computations with respect to any
REMIC 1 Interest shall be taken out to eight decimal places.

        If on any Distribution Date there is an increase in the Certificate
Principal Amount of any Class of Certificates as a result of the proviso in the
definition of Certificate Principal Amount, then, prior to distributions of
principal and allocations of losses on such Distribution Date with respect to
REMIC 1, there shall be a corresponding increase in the principal amount of the
REMIC 1 Regular Interests, with such increase allocated among the REMIC 1
Regular Interests as follows: (i) first, to each REMIC 1 Regular Interest ending
with the designation "B" so as to keep the Uncertificated Principal Balance of
such REMIC 1 Regular Interest equal to 1% of the aggregate Scheduled Principal
Balance of the Mortgage Loans in the related Mortgage Pool, (ii) second, to each
REMIC 1 Regular Interest ending with the designation "A", so that the
Uncertificated Principal Balance of each such REMIC 1 Regular Interest is as
close as possible to (but does not exceed) 1% of the excess of (x) the aggregate
Scheduled Principal balance of the Mortgage Loans in the related Mortgage Pool
over (y) the aggregate Class Principal Amounts of the Senior Certificates of the
Certificate Group related to such Mortgage Pool; provided, however, that (a) the
REMIC 1 Subordinated Balance Ratio is maintained and (b) amounts allocated to
any REMIC 1 Regular Interest pursuant to this clause (ii) shall not exceed the
amount of any previous realized losses allocated to such REMIC 1 Regular
Interest not previously offset by distributions or increases in the principal
amount of such REMIC 1 Regular Interest and (iii) finally, all remaining
increases are allocated to the Class LT1-Z Interest.

REMIC 2

        The following table specifies the class designation, interest rate,
principal amount and Classes of Corresponding Certificates or Class Z Components
for each class of REMIC 2 Interests:

                                        3
<PAGE>

   REMIC 2                          Pass-Through   Corresponding Certificates
REMIC Interest   Initial Balance        Rate         or Class Z Components
--------------   ----------------   ------------   --------------------------
LT2-1A1          $ 445,190,000.00       (1)                              1-A1
LT2-1A2          $  16,580,000.00       (1)                              1-A2
LT2-1R           $         100.00       (1)                                 R
LT2-2A           $ 179,101,000.00       (2)                               2-A
LT2-3A           $ 103,218,000.00       (3)                         3-A, 3-AX
LT2-4A1          $  97,598,000.00       (4)                              4-A1
LT2-4A2          $   5,545,000.00       (4)                              4-A2
LT2-5A1          $ 387,899,000.00       (5)                              5-A1
LT2-5A2          $  32,926,000.00       (5)                              5-A2
LT2-6A           $  66,416,000.00       (6)                               6-A
LT2-B1           $  15,731,000.00       (7)                B1, B1X, Class ZB1
                                                                    Component
LT2-B2           $  13,584,000.00       (7)                B2, B2X, Class ZB2
                                                                    Component
LT2-B3           $   8,579,000.00       (7)                           B3, B3X
LT2-B4           $  15,014,000.00       (7)                           B4, B4X
LT2-B5           $   5,718,000.00       (7)                           B5, B5X
LT2-B6           $   8,579,000.00       (8)                                B6
LT2-B7           $   1,427,000.00       (7)                           B7, B7X
LT2-B8           $   4,287,000.00       (8)                                B8
LT2-B9           $   3,572,000.00       (8)                                B9
LT2-B10          $   1,427,000.00       (7)                         B10, B10X
LT2-B11          $   7,148,000.00       (7)                         B11, B11X
LT2-B12          $   6,433,000.00       (8)                               B12
LT2-B13          $   4,334,358.47       (8)                               B13
LT2-R                   (9)             (9)                               N/A

----------
     (1)  For any Distribution Date, the interest rate for each of the Class
          LT2-1A1 Interest, Class LT2-1A2 and the Class LT2-1R Interest shall be
          a per annum rate equal to the Net WAC for Pool 1 for such Distribution
          Date.

     (2)  For any Distribution Date, the interest rate for the Class LT2-2A
          Interest shall be a per annum rate equal to the Net WAC for Pool 2 for
          such Distribution Date.

     (3)  For any Distribution Date, the interest rate for the Class LT2-3A
          Interest shall be a per annum rate equal to the Net WAC for Pool 3 for
          such Distribution Date.

     (4)  For any Distribution Date, the interest rate for the Class LT2-4A1
          Interest and Class LT2-4A2 Interest shall be a per annum rate equal to
          the Net WAC for Pool 4 for such Distribution Date.

     (5)  For any Distribution Date, the interest rate for the Class LT2-5A1
          Interest and the Class LT4-5A2 Interest shall be a per annum rate
          equal to the Net WAC for Pool 5 for such Distribution Date.

     (6)  For any Distribution Date, the interest rate for the Class LT2-6A
          Interest shall be a per annum rate equal to the Net WAC for Pool 6 for
          such Distribution Date.

                                        4
<PAGE>

     (7)  For any Distribution Date, the Class LT2-B1 Interest, Class LT2-B2
          Interest, Class LT2-B3 Interest, Class LT2-B4 Interest, Class LT2-B5
          Interest, Class LT2-B7 Interest, Class LT2-B10 Interest and Class
          LT2-B11 Interest will bear interest at a per annum rate equal to the
          LIBOR Available Funds Cap for such Distribution Date which is the
          mathematical equivalent of the product of (i) the weighted average of
          the pass-through rates on the REMIC 1 Regular Interests ending with
          the designation "A", weighted on the basis of the uncertificated
          principal balance of each such REMIC 1 Regular Interest immediately
          preceding the Distribution Date; provided that for purposes of such
          weighted average, the pass-through rate of each such REMIC 1 Regular
          Interest shall be subject to a cap and floor equal to the pass-through
          rate of the REMIC 1 Regular Interest that ends with the designation
          "B" and is related to the same Mortgage Pool and (ii) a fraction, the
          numerator of which is 30 and the denominator of which is the actual
          number of days in the related Accrual Period.

     (8)  For any Distribution Date, the Class LT2-B6 Interest, Class LT2-B8
          Interest, Class LT2-B9 Interest, Class LT2-B12 Interest and Class
          LT2-B13 Interest will bear interest at a per annum rate equal to the
          Pool 1-6 Underlying Subordinate Rate for such Distribution Date which
          is the mathematical equivalent of the weighted average of the
          pass-through rates on the REMIC 1 Regular Interests ending with the
          designation "A", weighted on the basis of the uncertificated principal
          balance of each such REMIC 1 Regular Interest immediately preceding
          the Distribution Date; provided that for purposes of such weighted
          average, the pass-through rate of each such REMIC 1 Regular Interest
          shall be subject to a cap and floor equal to the pass-through rate of
          the REMIC 1 Regular Interest that ends with the designation "B" and is
          related to the same Mortgage Pool.

     (9)  The Class LT2-R Interest shall represent the sole class of residual
          interest in REMIC 2. The Class LT2-R Interest will not have a
          principal amount or an interest rate. The Class LT2-R Interest shall
          be represented by the Class R Certificate.

        Principal and interest shall be payable to, and shortfalls, losses and
prepayments are allocable to, the REMIC 2 Regular Interests as such amounts (not
including Floating Rate Certificate Shortfalls and Excess REMIC Payments) are
payable and allocable to the Corresponding Certificates or Class Z Components.
Notwithstanding the preceding sentence, (i) the first $0.47 of losses with
respect to principal on the Mortgage Loans shall be allocated to the Class
LT2-B13 Interest and (ii) immediately preceding any payment to the Class R
Certificate pursuant to Section 5.02(f) attributable to principal received with
respect to any Mortgage Loan, a payment shall be treated as made to the Class
LT2-B13 Interest in reduction of the principal balance thereof, if any, to zero.

If on any Distribution Date there is an increase in the Certificate Principal
Amount of any Class of Certificates as a result of the proviso in the definition
of Certificate Principal Amount, then there shall be a corresponding increase in
the principal amount of the corresponding REMIC 2 Regular Interest.

UPPER TIER REMIC

The following table specifies the Class designation, Certificate Interest Rate,
initial Class Principal Amount or Class Notional Amount, and minimum
denomination (by dollar amount or Percentage Interest) for each Class of
Certificates representing the interests in the Trust Fund created hereunder.
Each Certificate (other than the Class Z, Class P, Class CX and Class R
Certificates) and each of the Class Z Components represents ownership of a
regular interest in the Upper Tier REMIC (or REMIC 3) for purposes of the REMIC
provisions.

                                        5
<PAGE>

                                     Initial Class
                                    Principal Amount
                     Certificate         or Class         Minimum
Class Designation   Interest Rate   Notional Amount    Denomination
-----------------   -------------   ----------------   ------------
Class 1-A1              (1)         $    445,190,000   $     25,000
Class 1-A2              (1)         $     16,580,000   $     25,000
Class 2-A               (2)         $    179,101,000   $     25,000
Class 3-A               (3)         $    103,218,000   $     25,000
Class 3-AX         4.50%(3)         $   21,799,464(4)  $  1,000,000
Class 4-A1              (5)         $     97,598,000   $     25,000
Class 4-A2              (5)         $      5,545,000   $     25,000
Class 5-A1              (6)         $    387,899,000   $     25,000
Class 5-A2              (6)         $     32,926,000   $     25,000
Class 6-A               (7)         $     66,416,000   $     25,000
Class B1                (8)         $     15,731,000   $    100,000
Class B1X               (9)         $   15,731,000(9)  $  1,000,000
Class B2                (10)        $     13,584,000   $    100,000
Class B2X               (11)        $  13,584,000(11)  $  1,000,000
Class B3                (12)        $      8,579,000   $    100,000
Class B3X               (13)        $   8,579,000(13)  $  1,000,000
Class B4                (14)        $     15,014,000   $    100,000
Class B4X               (15)        $  15,014,000(15)  $  1,000,000
Class B5                (16)        $      5,718,000   $    100,000
Class B5X               (17)        $   5,718,000(17)  $  1,000,000
Class B6                (18)        $      8,579,000   $    100,000
Class B7                (19)        $      1,427,000   $    100,000
Class B7X               (20)        $   1,427,000(20)  $  1,000,000
Class B8                (18)        $      4,287,000   $    100,000
Class B9                (18)        $      3,572,000   $    100,000
Class B10               (21)        $      1,427,000   $    100,000
Class B10X              (22)        $   1,427,000(22)  $  1,000,000
Class B11               (23)        $      7,148,000   $    250,000
Class B11X              (24)        $   7,148,000(24)  $  1,000,000
Class B12               (18)        $      6,433,000   $    250,000
Class B13               (18)        $      4,334,358   $    250,000
Class R                 (1)         $            100   $        100
Class P                 (25)                     (25)            25%
Class CX                (26)                     (26)            25%
Class Z                 (27)                     (27)           100%

----------
     (1)  For any Distribution Date, the Certificate Interest Rate on the Class
          1-A1, Class 1-A2 and Class R Certificates shall be a per annum rate
          equal to the Net WAC for Pool 1 for such Distribution Date.

     (2)  For any Distribution Date, the Certificate Interest Rate on the Class
          2-A Certificates shall be a per annum rate equal to the Net WAC for
          Pool 2 for such Distribution Date.

     (3)  For any Distribution Date on or prior to December 2009, the
          Certificate Interest Rate on the Class 3-A Certificates shall be a per
          annum rate equal to 4.50% subject to a maximum rate equal to the Net
          WAC for Pool 3 for such Distribution Date. Beginning with the
          Distribution Date in January 2010, the Certificate

                                        6
<PAGE>

          Interest Rate on the Class 3-A Certificates shall be a per annum rate
          equal to the Net WAC for Pool 3 for such Distribution Date.

     (4)  The Class 3-AX Certificates are Notional Certificates. For any
          Distribution Date, the Certificate Interest Rate for the Class 3-AX
          Certificates for each Distribution Date on or prior to December 2009
          will be an annual rate equal to 4.50%. Thereafter, the Class 3-AX
          Certificates will not accrue interest and will not be entitled to any
          distributions related to subsequent Distribution Dates. For any
          Distribution Date, the Class Notional Amount of the Class 3-AX
          Certificates shall be equal to the product of (i) a fraction, the
          numerator of which is the excess, if any, of (1) the Net WAC for Pool
          3 for the related Distribution Date over (2) 4.50%, and the
          denominator of which is 4.50% and (ii) the Class Principal Amount of
          the Class 3-A Certificates immediately prior to such Distribution
          Date.

     (5)  For any Distribution Date, the Certificate Interest Rate on the Class
          4-A1 and Class 4-A2 Certificates shall be a per annum rate equal to
          the Net WAC for Pool 4 for such Distribution Date.

     (6)  For any Distribution Date, the Certificate Interest Rate for the Class
          5-A1 and Class 5-A2 Certificates shall be a per annum rate equal to
          the Net WAC for Pool 5 for such Distribution Date.

     (7)  For any Distribution Date, the Certificate Interest Rate on the Class
          6-A Certificates shall be a per annum rate equal to the Net WAC for
          Pool 6 for such Distribution Date.

     (8)  The Certificate Interest Rate for the Class B1 Certificates for each
          Distribution Date will be the lesser of (i) LIBOR plus 0.45% per annum
          and (ii) the Class B1 LIBOR Available Funds Cap.

     (9)  The Class B1X Certificates are Notional Certificates. For any
          Distribution Date, the Certificate Interest Rate for the Class B1X
          Certificates will be an annual rate equal to the greater of: (i) 0.00%
          per annum and (ii) the excess of (a) the Class B1 LIBOR Available
          Funds Cap over (b) the per annum rate of the Class B1 Certificates.
          For any Distribution Date, the Class Notional Amount of the Class B1X
          Certificates shall be equal to the Class Principal Amount of the Class
          B1 Certificates immediately prior to such Distribution Date.

     (10) The Certificate Interest Rate for the Class B2 Certificates for each
          Distribution Date will be equal to the lesser of (i) LIBOR plus 0.47%
          per annum and (ii) the Class B2 LIBOR Available Funds Cap.

     (11) The Class B2X Certificates are Notional Certificates. For any
          Distribution Date, the Certificate Interest Rate for the Class B2X
          Certificates will be an annual rate equal to the greater of: (i) 0.00%
          per annum and (ii) the excess of (a) the Class B2 LIBOR Available
          Funds Cap over (b) the per annum rate of the Class B2 Certificates.
          For any Distribution Date, the Class Notional Amount of the Class B2X
          Certificates shall be equal to the Class Principal Amount of the Class
          B2 Certificates immediately prior to such Distribution Date.

     (12) The Certificate Interest Rate for the Class B3 Certificates for each
          Distribution Date will be equal to the lesser of (i) LIBOR plus 0.52%
          per annum and (ii) the LIBOR Available Funds Cap.

     (13) The Class B3X Certificates are Notional Certificates. For any
          Distribution Date, the Certificate Interest Rate for the Class B3X
          Certificates will be an annual rate equal to the greater of: (i) 0.00%
          per annum and (ii) the excess of (a) the LIBOR Available Funds Cap
          over (b) the per annum rate of the Class B3 Certificates. For any
          Distribution Date, the Class Notional Amount of the Class B3X
          Certificates shall be equal to the Class Principal Amount of the Class
          B3 Certificates immediately prior to such Distribution Date.

     (14) The Certificate Interest Rate for the Class B4 Certificates for each
          Distribution Date will be equal to the lesser of (i) LIBOR plus 0.58%
          per annum and (ii) the LIBOR Available Funds Cap.

     (15) The Class B4X Certificates are Notional Certificates. For any
          Distribution Date, the Certificate Interest Rate for the Class B4X
          Certificates will be an annual rate equal to the greater of: (i) 0.00%
          per annum and (ii) the excess of (a) the LIBOR Available Funds Cap
          over (b) the per annum rate of the Class B4 Certificates. For any
          Distribution Date, the Class Notional Amount of the Class B4X
          Certificates shall be equal to the Class Principal Amount of the Class
          B4 Certificates immediately prior to such Distribution Date.

                                        7
<PAGE>

     (16) The Certificate Interest Rate for the Class B5 Certificates for each
          Distribution Date will be equal to the lesser of (i) LIBOR plus 0.78%
          per annum and (ii) the LIBOR Available Funds Cap.

     (17) The Class B5X Certificates are Notional Certificates. For any
          Distribution Date, the Certificate Interest Rate for the Class B5X
          Certificates will be an annual rate equal to the greater of: (i) 0.00%
          per annum and (ii) the excess of (a) the LIBOR Available Funds Cap
          over (b) the per annum rate of the Class B5 Certificates. For any
          Distribution Date, the Class Notional Amount of the Class B5X
          Certificates shall be equal to the Class Principal Amount of the Class
          B5 Certificates immediately prior to such Distribution Date.

     (18) For any Distribution Date, the Class B6, Class B8, Class B9, Class B12
          and Class B13 Certificates shall bear interest at a per annum rate
          equal to the Pool 1-6 Underlying Subordinate Rate.

     (19) The Certificate Interest Rate for the Class B7 Certificates for each
          Distribution Date will be equal to the lesser of (i) LIBOR plus 1.40%
          per annum and (ii) the LIBOR Available Funds Cap.

     (20) The Class B7X Certificates are Notional Certificates. For any
          Distribution Date, the Certificate Interest Rate for the Class B7X
          Certificates will be an annual rate equal to the greater of: (i) 0.00%
          per annum and (ii) the excess of (a) the LIBOR Available Funds Cap
          over (b) the per annum rate of the Class B7 Certificates. For any
          Distribution Date, the Class Notional Amount of the Class B7X
          Certificates shall be equal to the Class Principal Amount of the Class
          B7 Certificates immediately prior to such Distribution Date.

     (21) The Certificate Interest Rate for the Class B10 Certificates for each
          Distribution Date will be the lesser of (i) LIBOR plus 3.75% per annum
          and (ii) the Class B10 LIBOR Available Funds Cap.

     (22) The Class B10X Certificates are Notional Certificates. For any
          Distribution Date, the Certificate Interest Rate for the Class B10X
          Certificates will be an annual rate equal to the greater of: (i) 0.00%
          per annum and (ii) the excess of (a) the Class B10 LIBOR Available
          Funds Cap over (b) the per annum rate of the Class B10 Certificates.
          For any Distribution Date, the Class Notional Amount of the Class B10X
          Certificates shall be equal to the Class Principal Amount of the Class
          B10 Certificates immediately prior to such Distribution Date.

     (23) The Certificate Interest Rate for the Class B11 Certificates for each
          Distribution Date will be the lesser of (i) LIBOR plus 5.00% per annum
          and (ii) the Class B11 LIBOR Available Funds Cap.

     (24) The Class B11X Certificates are Notional Certificates. For any
          Distribution Date, the Certificate Interest Rate for the Class B11X
          Certificates will be an annual rate equal to the greater of: (i) 0.00%
          per annum and (ii) the excess of (a) the Class B11 LIBOR Available
          Funds Cap over (b) the per annum rate of the Class B11 Certificates.
          For any Distribution Date, the Class Notional Amount of the Class B11X
          Certificates shall be equal to the Class Principal Amount of the Class
          B11 Certificates immediately prior to such Distribution Date.

     (25) The Class P Certificates will be entitled to receive Prepayment
          Penalty Amounts paid by borrowers upon voluntary full or partial
          prepayment of the Mortgage Loans in Pool 1, Pool 2, Pool 3, Pool 4,
          Pool 5 and Pool 6.

     (26) For any Distribution Date on or prior to the Distribution Date in
          December 2009, the Class CX Certificates will be entitled to receive
          any amounts received under the terms of the Cap Agreements related to
          the Class B1, Class B2, Class B3, Class B4, Class B5 and Class B7
          Certificates on such Distribution Date that were not used to pay the
          Floating Rate Certificate Shortfall. For any Distribution Date on or
          prior to the Distribution Date in January 2010, the Class CX
          Certificates will be entitled to receive any amounts received under
          the terms of the Cap Agreements related to the Class B10 and Class B11
          Certificates on such Distribution Date that were not used to pay the
          Floating Rate Certificate Shortfall. Beginning with the Distribution
          Date in February 2010, the Class CX Certificateholders will not be
          entitled to any distributions.

     (27) The Class Z Certificates shall not have a principal amount or interest
          rate. The Class Z Certificates shall be entitled to distributions as
          described in Section 5.02 hereof. For federal income tax purposes, the
          Class Z Certificates shall have the characteristics described in
          Section 10.01 hereof.

                                        8
<PAGE>

        As of the Cut-off Date, the Mortgage Loans had an aggregate Scheduled
Principal Balance of $1,430,306,458.47.

        For purposes hereof, each pool of Mortgage Loans constitutes a fully
separate and distinct sub-trust.

        In consideration of the mutual agreements herein contained, the
Depositor, the Master Servicer, the Securities Administrator and the Trustee
hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

        Section 1.01. Definitions.

        The following words and phrases, unless the context otherwise requires,
shall have the following meanings:

        Accepted Servicing Practices: With respect to any Mortgage Loan, as
applicable, either (x) those customary mortgage master servicing practices of
prudent mortgage servicing institutions that master service mortgage loans of
the same type and quality as such Mortgage Loan in the jurisdiction where the
related Mortgaged Property is located, to the extent applicable to the
Securities Administrator (as successor Master Servicer) or the Master Servicer
or (y) as provided in the applicable Servicing Agreement, to the extent
applicable to the related Servicer.

        Accountant: A person engaged in the practice of accounting who (except
when this Agreement provides that an Accountant must be Independent) may be
employed by or affiliated with the Depositor or an Affiliate of the Depositor.

        Accretion Directed Certificate: Not applicable.

        Accretion Termination Date: Not applicable.

        Accrual Amount: As to any Class of Accrual Certificates and each
Distribution Date through the Credit Support Depletion Date, the sum of (x) any
amount of Accrued Certificate Interest allocable to such Class pursuant to
Section 5.02(a)(ii) on such Distribution Date and (y) any Interest Shortfall
allocable to such Class pursuant to Section 5.02(a)(iii) on such Distribution
Date. As to any Class of Accrual Certificates and each Distribution Date after
the Credit Support Depletion Date, zero.

        Accrual Certificate: None.

        Accrual Component: None.

        Accrual Period: With respect to any Distribution Date and any Class of
Certificates (except for the Class B1, Class B1X, Class B2, Class B2X, Class B3,
Class B3X, Class B4, Class B4X, Class B5, Class B5X, Class B7, Class B7X, Class
B10, Class B10X, Class B11 and Class B11X Certificates), REMIC 1 Interests,
REMIC 2 Interests (except for the Class LT2-B1

                                        9
<PAGE>

Interest, Class LT2-B2 Interest, Class LT2-B3 Interest, Class LT2-B4 Interest,
Class LT2-B5 Interest, Class LT2-B7 Interest, Class LT2-B10 Interest and Class
LT2-B11 Interest), the one-month period beginning immediately following the end
of the preceding Accrual Period (or from the Cut-off Date, in the case of the
first Accrual Period) and ending on the last day of the month immediately
preceding the month in which such Distribution Date occurs. In the case of the
Class B1, Class B1X, Class B2, Class B2X, Class B3, Class B3X, Class B4, Class
B4X, Class B5, Class B5X, Class B7, Class B7X, Class B10, Class B10X, Class B11
and Class B11X Certificates and the Class LT2-B1 Interest, Class LT2-B2
Interest, Class LT2-B3 Interest, Class LT2-B4 Interest, Class LT2-B5 Interest,
Class LT2-B7 Interest, Class LT2-B10 Interest and Class LT2-B11 Interest, the
Accrual Period will be the period from and including the preceding Distribution
Date (or from January 28, 2005 in the case of the first Distribution Date) to
and including the day prior to such Distribution Date.

        Accrued Certificate Interest: As to any Class of Certificates and any
Distribution Date, the product of the Certificate Interest Rate for such Class
of Certificates and the Class Principal Amount (or Class Notional Amount) of
such Class of Certificates immediately preceding such Distribution Date, as
reduced by such Class's share of the interest portion of (i) any Excess Losses
for the related Mortgage Pool or Mortgage Pools for such Distribution Date and
(ii) any Relief Act Reduction for the related Mortgage Pool or Mortgage Pools
for such Distribution Date, in each case allocable among the Senior Certificates
of the related Certificate Group pro rata based on the Accrued Certificate
Interest otherwise distributable thereto, and allocable to the Class B1, Class
B2, Class B3, Class B4, Class B5, Class B6, Class B7, Class B8, Class B9, Class
B10, Class B11, Class B12 and Class B13 Certificates pro rata based on interest
accrued at the Underlying Subordinate Rate for the related Mortgage Pool on
their respective Apportioned Principal Balances. Amounts so allocated to the
Class B1, Class B2, Class B3, Class B4, Class B5, Class B7, Class B10 and Class
B11 Certificates shall be allocated between the Class B1 and Class B1X
Certificates or between the Class B2 and Class B2X Certificates or between the
Class B3 and Class B3X Certificates or between the Class B4 and Class B4X
Certificates or between the Class B5 and Class B5X Certificates or between the
Class B7 and Class B7X Certificates or between the Class B10 and Class B10X
Certificates or between the Class B11 and Class B11X Certificates, as the case
may be, proportionately, based upon the Accrued Certificate Interest thereon.
All calculations of interest on each Class of Certificates (other than Class B1,
Class B1X, Class B2, Class B2X, Class B3, Class B3X, Class B4, Class B4X, Class
B5, Class B5X, Class B7, Class B7X, Class B10, Class B10X, Class B11 and Class
B11X Certificates) and each of the REMIC 1 Interests and REMIC 2 Interests
(other than the Class LT2-B1 Interest, Class LT2-B2 Interest, Class LT2-B3
Interest, Class LT2-B4 Interest, Class LT2-B5 Interest, Class LT2-B7 Interest,
Class LT2-B10 Interest and Class LT2-B11 Interest) shall be calculated on the
basis of a 360-day year consisting of twelve 30-day months. All calculations of
interest on the Class B1, Class B1X, Class B2, Class B2X, Class B3, Class B3X,
Class B4, Class B4X, Class B5, Class B5X, Class B7, Class B7X, Class B10, Class
B10X, Class B11 and Class B11X Certificates and the Class LT2-B1 Interest, Class
LT2-B2 Interest, Class LT2-B3 Interest, Class LT2-B4 Interest, Class LT2-B5
Interest, Class LT2-B7 Interest, Class LT2-B10 Interest and Class LT2-B11
Interest will be made on the basis of a 360-day year and the actual number of
days elapsed in the applicable Accrual Period.

        Act: As defined in Section 3.03(c).

                                       10
<PAGE>

        Additional Collateral: None.

        Additional Collateral Servicing Agreement: None.

        Advance: An advance of the aggregate of payments of principal and
interest (net of the Retained Interest Rate (if applicable), the Master
Servicing Fee and the applicable Servicing Fee) on one or more Mortgage Loans
that were due on the Due Date in the related Due Period and not received as of
the close of business on the related Determination Date, required to be made by
or on behalf of the Master Servicer and the related Servicer (or by the
Securities Administrator solely in its capacity as successor Master Servicer in
accordance with Section 6.14) pursuant to Section 5.04.

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

        Aggregate Master Servicing Compensation: Not applicable.

        Aggregate Principal Balance: The aggregate of the Scheduled Principal
Balances for all Mortgage Loans at any date of determination.

        Aggregate Subordinate Percentage: With respect to any Distribution Date,
the sum of the Class Principal Amounts of the Subordinate Certificates
immediately prior to such date divided by the sum of the Pool Balances for all
of the Mortgage Pools for the immediately preceding Distribution Date.

        Aggregate Voting Interests: The aggregate of the Voting Interests of all
the Certificates under this Agreement.

        Agreement: This Trust Agreement and all amendments and supplements
hereto.

        AP Percentage: Not applicable.

        AP Principal Distribution Amount: Not applicable.

        Applicants: As defined in Section 8.02(b).

        Apportioned Principal Balance: As to any Class of Subordinate
Certificates and any Distribution Date, the Class Principal Amount of such Class
immediately prior to such Distribution Date multiplied by a fraction, the
numerator of which is the applicable Group Subordinate Amount for such date and
the denominator of which is the sum of the Group Subordinate Amounts for all
Mortgage Pools for such date.

                                       11
<PAGE>

        Appraised Value: With respect to any Mortgage Loan, the amount set forth
in an appraisal made in connection with the origination of such Mortgage Loan as
the value of the related Mortgaged Property.

        Associated Mortgage Loan: Not applicable.

        Assignment of Mortgage: An assignment of the Mortgage, notice of
transfer or equivalent instrument, in recordable form, sufficient under the laws
of the jurisdiction wherein the related Mortgaged Property is located to reflect
the sale of the Mortgage to the Trustee, which assignment, notice of transfer or
equivalent instrument may be in the form of one or more blanket assignments
covering the Mortgage Loans secured by Mortgaged Properties located in the same
jurisdiction, if permitted by law; provided, however, that the Trustee shall not
be responsible for determining whether any such assignment is in recordable
form.

        Aurora: Aurora Loan Services LLC or its successor in interest, in its
capacity as a Servicer.

        Authenticating Agent: Any authenticating agent appointed by the Trustee
pursuant to Section 6.10.

        Authorized Officer: Not applicable.

        Available Distribution Amount: As to each Mortgage Pool and on any
Distribution Date, the sum of the following amounts:

                (i)     the total amount of all cash received by the Master
        Servicer through the Remittance Date applicable to each Servicer and
        deposited with the Securities Administrator by the Master Servicer by
        the Deposit Date for such Distribution Date on the Mortgage Loans of
        such Mortgage Pool (including proceeds of any Insurance Policy and any
        other credit support relating to such Mortgage Loans and including any
        Subsequent Recovery), plus all Advances made by the Master Servicer or
        any Servicer (or the Securities Administrator, solely in its capacity as
        successor Master Servicer) for such Distribution Date, any Compensating
        Interest Payment for such date and Mortgage Pool, any amounts received
        with respect to any Additional Collateral, if any, or any surety bond,
        if any, related thereto and any amounts paid by any Servicer in respect
        of Prepayment Interest Shortfalls in respect of the related Mortgage
        Loans for such date, but not including:

                        (A)     all amounts distributed pursuant to Section 5.02
                on prior Distribution Dates;

                        (B)     all Scheduled Payments of principal and interest
                collected but due on a date subsequent to the related Due
                Period;

                        (C)     all Principal Prepayments received or identified
                by the applicable Servicer after the applicable Prepayment
                Period (together with any interest payments received with such
                prepayments to the extent that they represent the

                                       12
<PAGE>

                payment of interest accrued on the related Mortgage Loans for
                the period subsequent to the applicable Prepayment Period);

                        (D)     any other unscheduled collection, including Net
                Liquidation Proceeds, Subsequent Recoveries and Insurance
                Proceeds, received by the Master Servicer after the applicable
                Prepayment Period;

                        (E)     all fees and amounts due or reimbursable to the
                Master Servicer, the Trustee (or its custodian) , the Securities
                Administrator, the Custodian or a Servicer pursuant to the terms
                of this Agreement, the applicable Custodial Agreement or the
                applicable Servicing Agreement;

                        (F)     [Reserved];

                        (G)     [Reserved];

                        (H)     Prepayment Interest Excess, to the extent not
                                offset by Prepayment Interest Shortfalls; and

                (ii)    any other payment made by the Master Servicer, any
        Servicer, the Seller, the Depositor, or any other Person with respect to
        such Distribution Date (including the Purchase Price with respect to any
        Mortgage Loan purchased by the Seller, the Depositor or any other
        Person).

        Balloon Mortgage Loan: Not applicable.

        Balloon Payment: None.

        Bankruptcy: As to any Person, the making of an assignment for the
benefit of creditors, the filing of a voluntary petition in bankruptcy,
adjudication as a bankrupt or insolvent, the entry of an order for relief in a
bankruptcy or insolvency proceeding, the seeking of reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief, or
seeking, consenting to or acquiescing in the appointment of a trustee, receiver
or liquidator, dissolution, or termination, as the case may be, of such Person
pursuant to the provisions of either the United States Bankruptcy Code of 1986,
as amended, or any other similar state laws.

        Bankruptcy Coverage Termination Date: As to any Mortgage Pool, the
Distribution Date on which the Bankruptcy Loss Limit has been reduced to zero
(or less than zero).

        Bankruptcy Loss Limit: As of the Cut-off Date, $530,630, which amount
shall be reduced from time to time by the amount of Bankruptcy Losses that are
allocated to the Certificates.

        Bankruptcy Losses: With respect to the Mortgage Loans in the related
Mortgage Pool, losses that are incurred as a result of Deficient Valuations and
any reduction, in a bankruptcy proceeding, of the amount of the Scheduled
Payment on a Mortgage Loan other than as a result of a Deficient Valuation.

                                       13
<PAGE>

        Basis Risk Shortfall: Not applicable.

        Blanket Mortgage: Not applicable.

        Book-Entry Certificates: Beneficial interests in Certificates designated
as "Book-Entry Certificates" in this Agreement, ownership and transfers of which
shall be evidenced or made through book entries by a Clearing Agency as
described in Section 3.09; provided, that after the occurrence of a condition
whereupon book-entry registration and transfer are no longer permitted and
Definitive Certificates are to be issued to Certificate Owners, such Book-Entry
Certificates shall no longer be "Book-Entry Certificates." As of the Closing
Date, all of the Classes of Certificates listed in the Upper Tier REMIC table in
the Preliminary Statement, other than the Class R, Class CX, Class P and Class Z
Certificates, will constitute Book-Entry Certificates.

        Business Day: Any day other than (i) a Saturday or a Sunday, (ii) a day
on which banking institutions in Colorado, Minnesota, Maryland, New York or, if
other than New York, the city in which the Corporate Trust Office of the Trustee
is located, or (iii) with respect to any Remittance Date or any Servicer
reporting date, the States specified in the definition of "Business Day" in the
applicable Servicing Agreement, are authorized or obligated by law or executive
order to be closed.

        Cap Agreement: Each of (i) the interest rate cap agreement (Global Deal
IDs: 2068568 and 2068569), dated as of January 28, 2005, entered into between
the Trustee on behalf of the Trust Fund (for the benefit of the Class B1, Class
B2 and Class CX Certificateholders) and the Cap Provider, (ii) the interest rate
cap agreement (Global Deal IDs: 2068576 and 2068579), dated as of January 28,
2005, entered into between the Trustee on behalf of the Trust Fund (for the
benefit of the Class B3, Class B4 and Class CX Certificateholders) and the Cap
Provider, (iii) the interest rate cap agreement (Global Deal IDs: 2068582 and
2068586), dated as of January 28, 2005, entered into between the Trustee on
behalf of the Trust Fund (for the benefit of the Class B5 and Class CX
Certificateholders) and the Cap Provider, (iv) the interest rate cap agreement
(Global Deal IDs: 2068589 and 2068638), dated as of January 28, 2005, entered
into between the Trustee on behalf of the Trust Fund (for the benefit of the
Class B7 and Class CX Certificateholders) and the Cap Provider, (v) the interest
rate cap agreement (Global Deal IDs: 2068592 and 2068598), dated as of January
28, 2005, entered into between the Trustee on behalf of the Trust Fund (for the
benefit of the Class B10 and Class CX Certificateholders) and the Cap Provider
and (vi) the interest rate cap agreement (Global Deal IDs: 2068599 and 2068600),
dated as of January 28, 2005, entered into between the Trustee on behalf of the
Trust Fund (for the benefit of the Class B11 and Class CX Certificateholders)
and the Cap Provider, commencing in February 2005 and terminating on the Cap
Agreement Termination Date, together with the confirmation and schedules
relating thereto, in the form of Exhibit N hereto. The initial notional amount
for each Cap Agreement will decline on each Distribution Date to an amount equal
to the lesser of (i) the Class Principal Amount of the Class B1 and Class B2
Certificates, Class B3 and Class B4 Certificates, Class B5, Class B7, Class B10
or Class B11 Certificates, as applicable, and (ii) the respective Cap Agreement
Notional Amount set forth in the definition thereof for the related Distribution
Date.

        Cap Agreement Reserve Fund: The separate Eligible Account (which shall
not constitute an asset of any REMIC) created and maintained by the Securities
Administrator pursuant to

                                       14
<PAGE>

Section 5.06, which shall be held in trust for the Trust Fund for the uses and
purposes set forth in this Agreement.

        Cap Agreement Notional Amount: With respect to any Distribution Date,
the notional amount set forth in the schedule in the Cap Agreement, attached
hereto as Exhibit N.

        Cap Agreement Termination Date: The Distribution Date in December 2009
(in the case of the Cap Agreements relating to the Class B1, Class B2, Class B4,
Class B5 and Class B7 Certificates) or January 2010 (in the case of the Cap
Agreements relating to the Class B10 and Class B11 Certificates).

        Cap Provider: Lehman Brothers Special Financing Inc.

        Certificate: Any one of the certificates signed by the Trustee and
countersigned by the Authenticating Agent in substantially the forms attached
hereto as Exhibit A.

        Certificate Account: The account maintained by the Securities
Administrator in accordance with the provisions of Section 4.04.

        Certificate Group: The Group 1 Certificates, the Group 2 Certificates,
the Group 3 Certificates, the Group 4 Certificates, the Group 5 Certificates or
the Group 6 Certificates, as applicable. Certificate Interest Rate: With respect
to each Class of Certificates and any Distribution Date, the applicable per
annum rate specified or determined as provided in the Preliminary Statement
hereto.

        Certificate Owner: With respect to a Book-Entry Certificate, the Person
who is the owner of such Book-Entry Certificate, as reflected on the books of
the Clearing Agency, or on the books of a Person maintaining an account with
such Clearing Agency (directly or as an indirect participant, in accordance with
the rules of such Clearing Agency).

        Certificate Principal Amount: With respect to any Certificate other than
a Notional Certificate, at the time of determination, the maximum specified
dollar amount of principal to which the Holder thereof is then entitled
hereunder, such amount being equal to the initial principal amount set forth on
the face of such Certificate (plus, in the case of any Negative Amortization
Certificate, any Deferred Interest allocated thereto on previous Distribution
Dates, and plus, in the case of any Accrual Certificate, its Percentage Interest
of any related Accrual Amount for each previous Distribution Date), less the
amount of all principal distributions previously made with respect to such
Certificate, and all Realized Losses allocated to such Certificate and, in the
case of a Subordinate Certificate, any Subordinate Certificate Writedown Amount
allocated to such Certificates; provided, however, that on any Distribution Date
on which a Subsequent Recovery is distributed, the Certificate Principal Amount
of any Class of Certificates then outstanding for which any Realized Loss or any
Subordinate Certificate Writedown Amount has been applied will be increased, in
order of seniority, by an amount equal to the lesser of (i) the amount the Class
of Certificates has been reduced by any Realized Losses or any Subordinate
Certificate Writedown Amount which have not been previously offset by any
Subsequent

                                       15
<PAGE>

Recovery pursuant to this proviso and (ii) the total amount of any Subsequent
Recovery distributed on such date to Certificateholders (as reduced (x) by
increases in the Certificate Principal Amount of more senior Classes of
Certificates on such Distribution Date and (y) to reflect a proportionate amount
of what would (but for this clause (y) have been the increases in the
Certificate Principal Amount of Classes of Certificates of equal seniority on
such Distribution Date). For purposes of Article V hereof, unless specifically
provided to the contrary, Certificate Principal Amounts shall be determined as
of the close of business of the immediately preceding Distribution Date, after
giving effect to all distributions made on such date. Notional Certificates are
issued without Certificate Principal Amounts.

        Certificate Register and Certificate Registrar: The register maintained
and the registrar appointed pursuant to Section 3.02.

        Class: All Certificates bearing the same class designation, and, in the
case of REMIC 1, REMIC 2 or REMIC 3, all Interests bearing the same designation.

        Class AP Certificate: None.

        Class AP Deferred Amount: Not applicable.

        Class B Certificate: Any Class B1, Class B1X, Class B2, Class B2X, Class
B3, Class B3X, Class B4, Class B4X, Class B5, Class B5X, Class B6, Class B7,
Class B7X, Class B8, Class B9, Class B10, Class B10X, Class B11, Class B11X,
Class B12 and Class B13 Certificate.

        Class B1 LIBOR Available Funds Cap: For each Distribution Date will be
equal to the product of (1) the excess between (i) the Pool 1-6 Underlying
Subordinate Rate for such Distribution Date and (ii) 0.92% and (2) a fraction,
the numerator of which is 30 and the denominator of which is the actual number
of days in the related Accrual Period.

        Class B2 LIBOR Available Funds Cap: For each Distribution Date will be
equal to the product of (1) the excess between (i) the Pool 1-6 Underlying
Subordinate Rate for such Distribution Date and (ii) 0.92% and (2) a fraction,
the numerator of which is 30 and the denominator of which is the actual number
of days in the related Accrual Period.

        Class B10 LIBOR Available Funds Cap: For each Distribution Date will be
equal to (A) the sum of (x) the Pool 1-6 Underlying Subordinate Rate for such
Distribution Date and (y) the product of (i) 0.1002% and (ii) the Class B10
Multiplier, multiplied by (B) a fraction, expressed as a percentage, the
numerator of which is 30 and the denominator of which is the actual number of
days in the related Accrual Period.

        Class B10 Multiplier: For any Distribution Date will be equal to the
percentage equivalent of a fraction, the numerator of which is the sum of (1)
the Class Principal Amount of the Class B1 Certificates and (2) the Class B2
Certificates and the denominator of which is the Class Principal Amount of the
Class B10 Certificates, in each case immediately prior to that Distribution
Date.

        Class B11 LIBOR Available Funds Cap: For each Distribution Date will be
equal to (A) the sum of (x) the Pool 1-6 Underlying Subordinate Rate for such
Distribution Date and (y) the product of (i) 0.8198% and (ii) the Class B11
Multiplier, multiplied by (B) a fraction, expressed

                                       16
<PAGE>

as a percentage, the numerator of which is 30 and the denominator of which is
the actual number of days in the related Accrual Period.

        Class B11 Multiplier: For any Distribution Date will be equal to the
percentage equivalent of a fraction, the numerator of which is the sum of (1)
the Class Principal Amount of the Class B1 Certificates and (2) the Class B2
Certificates and the denominator of which is the Class Principal Amount of the
Class B11 Certificates, in each case immediately prior to that Distribution
Date.

        Class LT1-R Interest: The sole residual interest in REMIC 1.

        Class LT2-R Interest: The sole residual interest in REMIC 2.

        Class Notional Amount: With respect to each Class of Notional
Certificates the applicable class notional amount calculated as provided in the
Preliminary Statement hereto.

        Class P Certificates: The Class P Certificates.

        Class Percentage: With respect to each Class of Subordinate
Certificates, for each Distribution Date, the percentage obtained by dividing
the Class Principal Amount of such Class immediately prior to such Distribution
Date by the sum of the Class Principal Amounts of all Certificates immediately
prior to such date.

        Class Principal Amount: With respect to each Class of Certificates other
than any Class of Notional Certificates, the aggregate of the Certificate
Principal Amounts of all Certificates of such Class at the date of
determination. With respect to each Class of Notional Certificates and the Class
P Certificates, zero.

        Class Z Components: Each of the Class ZB1 Component and the Class ZB2
Component.

        Class Z Extra Distribution Amount: For any Distribution Date, the excess
of (A) the sum of (x) the interest accrued on the Class ZB1 Component and (y)
the interest accrued on the Class ZB2 Component over (B) the sum of all Excess
REMIC Payments for such Distribution Date.

        Class ZB1 Component: An interest-only "regular interest" in the Upper
Tier REMIC represented by the Class Z Certificates entitled on any Distribution
Date to interest accrued on the Class LT2-B1 Interest at a per annum rate of
0.92%. Interest on the Class ZB1 Component shall be calculated on the basis of a
360-day year consisting of twelve 30-day months. For purposes of the REMIC
Provisions, the Class ZB1 Component shall represent the right to a "specified
portion" of the interest on the Class LT2-B1 Interest.

        Class ZB2 Component: An interest-only "regular interest" in the Upper
Tier REMIC represented by the Class Z Certificates entitled on any Distribution
Date to interest accrued on the Class LT2-B2 Interest at a per annum rate of
0.92%. Interest on the Class ZB2 Component shall be calculated on the basis of a
360-day year consisting of twelve 30-day months. For purposes of the REMIC
Provisions, the Class ZB2 Component shall represent the right to a "specified
portion" of the interest on the Class LT2-B2 Interest.

                                       17
<PAGE>

        Clearing Agency: An organization registered as a "clearing agency"
pursuant to Section 17A of the Securities Exchange Act of 1934, as amended. As
of the Closing Date, the Clearing Agency shall be The Depository Trust Company.

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

        Clearstream: Clearstream Banking, societe anonyme, and any successor
thereto.

        Closing Date: January 28, 2005.

        Code: The Internal Revenue Code of 1986, as amended, and as it may be
further amended from time to time, any successor statutes thereto, and
applicable U.S. Department of Treasury regulations issued pursuant thereto in
temporary or final form.

        Collection Account: A separate account established and maintained by the
Master Servicer pursuant to Section 4.01.

        Commission: As defined in Section 6.20(a).

        Compensating Interest Payment: With respect to any Distribution Date, an
amount equal to the aggregate amount of any Prepayment Interest Shortfalls
required to be paid by the Servicers with respect to such Distribution Date. The
Master Servicer shall not be responsible to make any Compensating Interest
Payment.

        Component: Not applicable.

        Component Certificate: Not applicable.

        Component Interest Rate: Not applicable.

        Component Notional Amount: Not applicable.

        Component Principal Amount: Not applicable.

        Component Writedown Amount: Not applicable.

        Conventional Loan: A Mortgage Loan that is not insured by the United
States Federal Housing Administration or guaranteed by the United States
Veterans Administration.

        Converted Mortgage Loan: Not applicable.

        Convertible Mortgage Loan: Not applicable.

        Cooperative Corporation: The entity that holds title (fee or an
acceptable leasehold estate) to the real property and improvements constituting
the Cooperative Property and which governs the Cooperative Property, which
Cooperative Corporation must qualify as a Cooperative Housing Corporation under
Section 216 of the Code.

                                       18
<PAGE>

        Cooperative Loan: Any Mortgage Loan secured by Cooperative Shares and a
Proprietary Lease.

        Cooperative Loan Documents: As to any Cooperative Loan, (i) the
Cooperative Shares, together with a stock power in blank; (ii) the original
executed Security Agreement and the assignment of the Security Agreement
endorsed in blank; (iii) the original executed Proprietary Lease and the
assignment of the Proprietary Lease endorsed in blank; (iv) the original
executed Recognition Agreement and the assignment of the Recognition Agreement
(or a blanket assignment of all Recognition Agreements) endorsed in blank; (v)
the executed UCC-1 financing statement with evidence of recording thereon, which
has been filed in all places required to perfect the security interest in the
Cooperative Shares and the Proprietary Lease; and (vi) executed UCC-3 financing
statements (or copies thereof) or other appropriate UCC financing statements
required by state law, evidencing a complete and unbroken line from the
mortgagee to the Trustee with evidence of recording thereon (or in a form
suitable for recordation).

        Cooperative Property: The real property and improvements owned by the
Cooperative Corporation, that includes the allocation of individual dwelling
units to the holders of the Cooperative Shares of the Cooperative Corporation.

        Cooperative Shares: Shares issued by a Cooperative Corporation.

        Cooperative Unit: A single-family dwelling located in a Cooperative
Property.

        Corporate Trust Office: With respect to the Trustee, the principal
corporate trust office of the Trustee located at 452 Fifth Avenue, New York, New
York 10018, Attention: SARM 2005-1, or at such other address as the Trustee may
designate from time to time by notice to the Certificateholders, the Depositor,
the Master Servicer and the Securities Administrator or the principal corporate
trust office of any successor Trustee. With respect to the Securities
Administrator for purposes of presentment of Certificates for registration of
transfer, exchange or final payment, Wells Fargo Bank, National Association,
Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479, Attention: SARM
2005-1.

        Corresponding Certificates or Class Z Components: With respect to any
class of REMIC 2 Interests, the Class or Classes of Certificates or Class Z
Components so designated in the Preliminary Statement hereto.

        Corresponding Class: Not applicable.

        Corresponding Component: None.

        Credit Score: With respect to any Mortgage Loan, a numerical assessment
of default risk with respect to the Mortgagor under such Mortgage Loan,
determined on the basis of a methodology developed by Fair, Isaac & Co., Inc.

        Credit Support Depletion Date: The Distribution Date on which, after
giving effect to all distributions on such date, the aggregate Certificate
Principal Amount of the Subordinate Certificates is reduced to zero.

                                       19
<PAGE>

        Credit Support Percentage: As to any Class of Subordinate Certificates
and any Distribution Date, the sum of the Class Percentages of all Classes of
Certificates that rank lower in priority than such Class.

        Custodial Agreement: Each custodial agreement attached as Exhibit K
hereto, and any custodial agreement subsequently executed by the Trustee
substantially in the form thereof.

        Custodian: Each custodian appointed by the Trustee pursuant to a
Custodial Agreement, and any successor thereto. The initial Custodians are
LaSalle Bank National Association, U.S. Bank National Association and Wells
Fargo Bank, N.A.

        Cut-off Date: January 1, 2005.

        Cut-off Date Aggregate Principal Balance: Not applicable.

        Debt Service Reduction: With respect to any Mortgage Loan, a reduction
of the Scheduled Payment that the related Mortgagor is obligated to pay on any
Due Date as a result of any proceeding under Bankruptcy law or any similar
proceeding.

        Deferred Interest: None.

        Deficient Valuation: With respect to any Mortgage Loan, a valuation by a
court of competent jurisdiction of the Mortgaged Property in an amount less than
the then outstanding indebtedness under such Mortgage Loan, which valuation
results from a proceeding under Bankruptcy law or any similar proceeding.

        Definitive Certificate: A Certificate of any Class issued in definitive,
fully registered, certificated form.

        Deleted Mortgage Loan: A Mortgage Loan that is repurchased from the
Trust Fund pursuant to the terms hereof or as to which one or more Qualifying
Substitute Mortgage Loans are substituted therefor.

        Deposit Date: With respect to each Distribution Date, the Business Day
immediately preceding such Distribution Date.

        Depositor: Structured Asset Securities Corporation, a Delaware
corporation having its principal place of business in New York, or its
successors in interest.

        Designated Rate: Not applicable.

        Determination Date: With respect to each Distribution Date, the
Remittance Date immediately preceding such Distribution Date.

        Direct Obligations: As defined in the definition of Eligible
Investments.

        Discount Mortgage Loan: None.

                                       20
<PAGE>

        Disqualified Organization: Either (i) the United States, (ii) any state
or political subdivision thereof, (iii) any foreign government, (iv) any
international organization, (v) any agency or instrumentality of any of the
foregoing, (vi) any tax-exempt organization (other than a cooperative described
in section 521 of the Code) which is exempt from the tax imposed by Chapter 1 of
the Code unless such organization is subject to the tax imposed by section 511
of the Code, (vii) any organization described in section 1381(a)(2)(C) of the
Code, (viii) any "electing large partnership" described in section 775 of the
Code, or (ix) any other entity designated as a Disqualified Organization by
relevant legislation amending the REMIC Provisions and in effect at or proposed
to be effective as of the time of the determination. In addition, a corporation
will not be treated as an instrumentality of the United States or of any state
or political subdivision thereof if all of its activities are subject to tax
and, with the exception of the Federal Home Loan Mortgage Corporation, a
majority of its board of directors is not selected by such governmental unit.

        Distribution Date: The 25th day of each month, or, if such 25th day is
not a Business Day, the next succeeding Business Day commencing in February
2005.

        Due Date: With respect to any Mortgage Loan, the date on which a
Scheduled Payment is due under the related Mortgage Note.

        Due Period: With respect to any Distribution Date, the period commencing
on the second day of the month immediately preceding the month in which such
Distribution Date occurs and ending on the first day of the month in which such
Distribution Date occurs.

        Eligible Account: Either (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company acceptable to
the Rating Agencies or (ii) an account or accounts the deposits in which are
insured by the FDIC to the limits established by such corporation, provided that
any such deposits not so insured shall be maintained in an account at a
depository institution or trust company whose commercial paper or other short
term debt obligations (or, in the case of a depository institution or trust
company which is the principal subsidiary of a holding company, the commercial
paper or other short term debt or deposit obligations of such holding company or
depository institution, as the case may be) have been rated by each Rating
Agency in its highest short-term rating category, or (iii) a segregated trust
account or accounts (which shall be a "special deposit account") maintained with
the Trustee, the Securities Administrator or any other federal or state
chartered depository institution or trust company, acting in its fiduciary
capacity, in a manner acceptable to the Trustee and the Rating Agencies.
Eligible Accounts may bear interest.

        Eligible Investments: Any one or more of the following obligations or
securities:

                (i)     direct obligations of, and obligations fully guaranteed
        as to timely payment of principal and interest by, the United States of
        America or any agency or instrumentality of the United States of America
        the obligations of which are backed by the full faith and credit of the
        United States of America ("Direct Obligations");

                (ii)    federal funds, or demand and time deposits in,
        certificates of deposits of, or bankers' acceptances issued by, any
        depository institution or trust company (including

                                       21
<PAGE>

        U.S. subsidiaries of foreign depositories and the Trustee or any agent
        of the Trustee or the Securities Administrator, acting in its respective
        commercial capacity) incorporated or organized under the laws of the
        United States of America or any state thereof and subject to supervision
        and examination by federal or state banking authorities, so long as at
        the time of investment or the contractual commitment providing for such
        investment the commercial paper or other short-term debt obligations of
        such depository institution or trust company (or, in the case of a
        depository institution or trust company which is the principal
        subsidiary of a holding company, the commercial paper or other
        short-term debt or deposit obligations of such holding company or
        deposit institution, as the case may be) have been rated by each Rating
        Agency in its highest short-term rating category or one of its two
        highest long-term rating categories;

                (iii)   repurchase agreements collateralized by Direct
        Obligations or securities guaranteed by GNMA, FNMA or FHLMC with any
        registered broker/dealer subject to Securities Investors' Protection
        Corporation jurisdiction or any commercial bank insured by the FDIC, if
        such broker/dealer or bank has an uninsured, unsecured and unguaranteed
        obligation rated by each Rating Agency in its highest short-term rating
        category;

                (iv)    securities bearing interest or sold at a discount issued
        by any corporation incorporated under the laws of the United States of
        America or any state thereof which have a credit rating from each Rating
        Agency, at the time of investment or the contractual commitment
        providing for such investment, at least equal to one of the two highest
        short-term credit ratings of each Rating Agency; provided, however, that
        securities issued by any particular corporation will not be Eligible
        Investments to the extent that investment therein will cause the then
        outstanding principal amount of securities issued by such corporation
        and held as part of the Trust Fund to exceed 20% of the sum of the
        Aggregate Principal Balance and the aggregate principal amount of all
        Eligible Investments in the Certificate Account; provided, further, that
        such securities will not be Eligible Investments if they are published
        as being under review with negative implications from either Rating
        Agency;

                (v)     commercial paper (including both non interest-bearing
        discount obligations and interest-bearing obligations payable on demand
        or on a specified date not more than 180 days after the date of issuance
        thereof) rated by each Rating Agency in its highest short-term ratings;

                (vi)    a Qualified GIC;

                (vii)   certificates or receipts representing direct ownership
        interests in future interest or principal payments on obligations of the
        United States of America or its agencies or instrumentalities (which
        obligations are backed by the full faith and credit of the United States
        of America) held by a custodian in safekeeping on behalf of the holders
        of such receipts; and

                (viii)  any other demand, money market fund, common trust fund
        or time deposit or obligation, or interest-bearing or other security or
        investment (including those managed or advised by the Securities
        Administrator or an Affiliate thereof), (A) rated in

                                       22
<PAGE>

        the highest rating category by each Rating Agency (if rated by such
        Rating Agency) or (B) that would not adversely affect the then current
        rating by either Rating Agency of any of the Certificates and has a
        short term rating of at least "A-1" or its equivalent by each Rating
        Agency. Such investments in this subsection (viii) may include money
        market mutual funds for which the Trustee, the Securities Administrator,
        the Master Servicer or an affiliate thereof serves as an investment
        advisor, administrator, shareholder servicing agent, and/or custodian or
        subcustodian, notwithstanding that (i) any such Person or an Affiliate
        thereof charges and collects fees and expenses from such funds for
        services rendered, (ii) any such Person or an Affiliate thereof charges
        and collects fees and expenses for services rendered pursuant to this
        Agreement, and (iii) services performed for such funds and pursuant to
        this Agreement may converge at any time. The Trustee specifically
        authorizes any such Person or an Affiliate thereof to charge and collect
        from the Trust Fund such fees as are collected from all investors in
        such funds for services rendered to such funds (but not to exceed
        investment earnings thereon);

provided, however, that (x) no such instrument shall be an Eligible Investment
if such instrument evidences either (i) a right to receive only interest
payments with respect to the obligations underlying such instrument, or (ii)
both principal and interest payments derived from obligations underlying such
instrument and the principal and interest payments with respect to such
instrument provide a yield to maturity of greater than 120% of the yield to
maturity at par of such underlying obligations and (y) each such investment must
be a "permitted investment" within the meaning of Section 860G(a)(5) of the
Code.

        Employee Mortgage Loan: None.

        ERISA: The Employee Retirement Income Security Act of 1974, as amended,
and as it may be further amended from time to time, any successor statutes
thereto, and applicable U.S. Department of Labor regulations issued pursuant
thereto in temporary or final form.

        ERISA-Qualifying Underwriting: A best efforts or firm commitment
underwriting or private placement that would satisfy the requirements of the
Underwriter's Exemption, except, in relevant part, for the requirement that the
certificates have received a rating at the time of acquisition that is in one of
the three (or four, in the case of a "designated transaction") highest generic
rating categories by at least one of the Rating Agencies.

        ERISA-Restricted Certificate: Any Class R, Class P, Class B11, Class B12
or Class B13 Certificate and any other Certificate, unless the acquisition and
holding of such other Certificate is covered by and exempt under the
Underwriter's Exemption.

        Escrow Account: Any account established and maintained by a Servicer
pursuant to the applicable Servicing Agreement.

        Euroclear: Euroclear S.A./N.V., as operator of the Euroclear System.

        Event of Default: Any one of the conditions or circumstances enumerated
in Section 6.14(a).

                                       23
<PAGE>

        Excess Loss: Any Bankruptcy Loss, or portion thereof, in excess of the
then-applicable Bankruptcy Loss Limit, any Fraud Loss, or portion thereof, in
excess of the then-applicable Fraud Loss Limit, and any Special Hazard Loss, or
portion thereof, in excess of the then-applicable Special Hazard Loss Limit.

        Excess REMIC Payment: For any Distribution Date, any of (i) any interest
payable to the Class B10 Certificates at a rate in excess of the LIBOR Available
Funds Cap, (ii) any interest payable to the Class B11 Certificates at a rate in
excess of the LIBOR Available Funds Cap, (iii) any interest payable to the Class
B10X Certificates substituting "LIBOR Available Funds Cap" for "Class B10 LIBOR
Available Funds Cap" in the Certificate Interest Rate for the Class B10X
Certificates and (iv) any interest payable to the Class B11X Certificates
substituting "LIBOR Available Funds Cap" for "Class B11 LIBOR Available Funds
Cap" in the Certificate Interest Rate for the Class B11X Certificates.

        Extended Period: As defined in Section 10.04(b).

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

        FHLMC: The Federal Home Loan Mortgage Corporation, a corporate
instrumentality of the United States created and existing under Title III of the
Emergency Home Finance Act of 1970, as amended, or any successor thereto.

        Final Scheduled Distribution Date: For the Certificates (other than the
Class 3-AX Certificates) is the Distribution Date in February 2035; for the
Class 3-AX Certificates is the Distribution Date in December 2009.

        Financial Intermediary: Not applicable.

        Fitch: Not applicable.

        Floating Rate Certificate Shortfall: With respect to the Class B1
Certificates and any Distribution Date on or prior to the Distribution Date in
December 2009, in the event that the Certificate Interest Rate for such Class B1
Certificates is based upon the Class B1 LIBOR Available Funds Cap, is equal to
the sum of (A) the excess of (i) the amount of interest that such Class B1
Certificates would have been entitled to receive on such Distribution Date had
the Certificate Interest Rate for such Class B1 Certificates not been calculated
based on the Class B1 LIBOR Available Funds Cap over (ii) the amount of interest
such Class B1 Certificates was entitled to receive based on the Class B1 LIBOR
Available Funds Cap and (B) any unpaid Floating Rate Certificate Shortfall for
such Class B1 Certificates with respect to any prior Distribution Date plus
interest accrued thereon at a per annum rate of LIBOR plus 0.45% per annum. With
respect to the Class B2 Certificates and any Distribution Date on or prior to
the Distribution Date in December 2009, in the event that the Certificate
Interest Rate for such Class B2 Certificates is based upon the Class B2 LIBOR
Available Funds Cap, is equal to the sum of (A) the excess of (i) the amount of
interest that such Class B2 Certificates would have been entitled to receive on
such Distribution Date had the Certificate Interest Rate for such Class B2
Certificates not been calculated based on the Class B2 LIBOR Available Funds Cap
over (ii) the amount of interest such Class B2 Certificates was entitled to
receive based on the Class B2 LIBOR Available Funds Cap and (B) any unpaid
Floating Rate Certificate Shortfall for such Class B2 Certificates with respect
to any prior Distribution Date plus interest accrued thereon at a per annum rate
of LIBOR plus 0.47% per annum. With respect to the Class B3 Certificates and

                                       24
<PAGE>

any Distribution Date on or prior to the Distribution Date in December 2009, in
the event that the Certificate Interest Rate for such Class B3 Certificates is
based upon the LIBOR Available Funds Cap, is equal to the sum of (A) the excess
of (i) the amount of interest that such Class B3 Certificates would have been
entitled to receive on such Distribution Date had the Certificate Interest Rate
for such Class B3 Certificates not been calculated based on the LIBOR Available
Funds Cap over (ii) the amount of interest such Class B3 Certificates was
entitled to receive based on the LIBOR Available Funds Cap and (B) any unpaid
Floating Rate Certificate Shortfall for such Class B3 Certificates with respect
to any prior Distribution Date plus interest accrued thereon at a per annum rate
of LIBOR plus 0.52% per annum. With respect to the Class B4 Certificates and any
Distribution Date on or prior to the Distribution Date in December 2009, in the
event that the Certificate Interest Rate for such Class B4 Certificates is based
upon the LIBOR Available Funds Cap, is equal to the sum of (A) the excess of (i)
the amount of interest that such Class B4 Certificates would have been entitled
to receive on such Distribution Date had the Certificate Interest Rate for such
Class B4 Certificates not been calculated based on the LIBOR Available Funds Cap
over (ii) the amount of interest such Class B4 Certificates was entitled to
receive based on the LIBOR Available Funds Cap and (B) any unpaid Floating Rate
Certificate Shortfall for such Class B4 Certificates with respect to any prior
Distribution Date plus interest accrued thereon at a per annum rate of LIBOR
plus 0.58% per annum. With respect to the Class B5 Certificates and any
Distribution Date on or prior to the Distribution Date in December 2009, in the
event that the Certificate Interest Rate for such Class B5 Certificates is based
upon the LIBOR Available Funds Cap, is equal to the sum of (A) the excess of (i)
the amount of interest that such Class B5 Certificates would have been entitled
to receive on such Distribution Date had the Certificate Interest Rate for such
Class B5 Certificates not been calculated based on the LIBOR Available Funds Cap
over (ii) the amount of interest such Class B5 Certificates was entitled to
receive based on the LIBOR Available Funds Cap and (B) any unpaid Floating Rate
Certificate Shortfall for such Class B5 Certificates with respect to any prior
Distribution Date plus interest accrued thereon at a per annum rate of LIBOR
plus 0.78% per annum. With respect to the Class B7 Certificates and any
Distribution Date on or prior to the Distribution Date in December 2009, in the
event that the Certificate Interest Rate for such Class B7 Certificates is based
upon the LIBOR Available Funds Cap, is equal to the sum of (A) the excess of (i)
the amount of interest that such Class B7 Certificates would have been entitled
to receive on such Distribution Date had the Certificate Interest Rate for such
Class B7 Certificates not been calculated based on the LIBOR Available Funds Cap
over (ii) the amount of interest such Class B7 Certificates was entitled to
receive based on the LIBOR Available Funds Cap and (B) any unpaid Floating Rate
Certificate Shortfall for such Class B7 Certificates with respect to any prior
Distribution Date plus interest accrued thereon at a per annum rate of LIBOR
plus 1.40% per annum. With respect to the Class B10 Certificates and any
Distribution Date on or prior to the Distribution Date in January 2010, in the
event that the Certificate Interest Rate for such Class B10 Certificates is
based upon the Class B10 LIBOR Available Funds Cap, is equal to the sum of (A)
the excess of (i) the amount of interest that such Class B10 Certificates would
have been entitled to receive on such Distribution Date had the Certificate
Interest Rate for such Class B10 Certificates not been calculated based on the
Class B10 LIBOR Available Funds Cap over (ii) the amount of interest such Class
B10 Certificates was entitled to receive based on the Class B10 LIBOR Available
Funds Cap and (B) any unpaid Floating Rate Certificate Shortfall for such Class
B10 Certificates with respect to any prior Distribution Date plus interest
accrued thereon at a per annum rate of LIBOR plus 3.75% per annum. With respect
to the Class B11

                                       25
<PAGE>

Certificates and any Distribution Date on or prior to the Distribution Date in
January 2010, in the event that the Certificate Interest Rate for such Class B11
Certificates is based upon the Class B11 LIBOR Available Funds Cap, is equal to
the sum of (A) the excess of (i) the amount of interest that such Class B11
Certificates would have been entitled to receive on such Distribution Date had
the Certificate Interest Rate for such Class B11 Certificates not been
calculated based on the Class B11 LIBOR Available Funds Cap over (ii) the amount
of interest such Class B11 Certificates was entitled to receive based on the
Class B11 LIBOR Available Funds Cap and (B) any unpaid Floating Rate Certificate
Shortfall for such Class B11 Certificates with respect to any prior Distribution
Date plus interest accrued thereon at a per annum rate of LIBOR plus 5.00% per
annum.

        FNMA: The Federal National Mortgage Association, a federally chartered
and privately owned corporation organized and existing under the Federal
National Mortgage Association Charter Act, or any successor thereto.

        Form 10-K Certification: As defined in Section 6.20(a) hereof.

        Fraud Loss: Any Realized Loss on a Liquidated Mortgage Loan sustained by
reason of a default arising from fraud, dishonesty or misrepresentation in
connection with the related Mortgage Loan, as reported by the applicable
Servicer to the Master Servicer.

        Fraud Loss Limit: With respect to any Distribution Date (x) prior to the
first anniversary of the Cut-off Date, $28,606,129 less the aggregate of Fraud
Losses since the Cut-off Date and (y) from the first anniversary to the fifth
anniversary of the Cut-off Date, an amount equal to (1) the lesser of (a) the
Fraud Loss Limit as of the most recent anniversary of the Cut-off Date and (b)
1% of the aggregate principal balance of all the Mortgage Loans as of the most
recent anniversary of the Cut-off Date less (2) the aggregate of Fraud Losses
since the most recent anniversary of the Cut-off Date. On or after the fifth
anniversary of the Cut-off Date, the Fraud Loss Limit shall be zero.

        Global Securities: The global certificates representing the Book-Entry
Certificates.

        GNMA: The Government National Mortgage Association, a wholly owned
corporate instrumentality of the United States within HUD.

        Grantor Trust: Any of Grantor Trust I or any grantor trust described in
Section 10.01(n) hereof.

        Grantor Trust I: That certain "grantor trust" (within the meaning of the
Grantor Trust Provisions) consisting of the Grantor Trust I Assets.

        Grantor Trust I Assets: Any Prepayment Penalty Amounts collected with
respect to Pool 1, Pool 2, Pool 3, Pool 4, Pool 5 or Pool 6.

        Grantor Trust Provisions: Subpart E of Subchapter J of the Code,
including Treasury regulation section 301.7701-4(c)(2).

        Group 1: All of the Group 1 Certificates.

                                       26
<PAGE>

        Group 1 Certificate: Any Class 1-A1, Class 1-A2 or Class R Certificate.

        Group 2: All of the Group 2 Certificates.

        Group 2 Certificate: Any Class 2-A Certificate.

        Group 3: All of the Group 3 Certificates.

        Group 3 Certificate: Any Class 3-A Certificate.

        Group 4: All of the Group 4 Certificates.

        Group 4 Certificate: Any Class 4-A1 or Class 4-A2 Certificate.

        Group 5: All of the Group 5 Certificates.

        Group 5 Certificate: Any Class 5-A1 or Class 5-A2 Certificate.

        Group 6: All of the Group 6 Certificates.

        Group 6 Certificate: Any Class 6-A Certificate.

        Group Subordinate Amount: With respect to any Mortgage Pool and any
Distribution Date, the excess, if any, of the Pool Balance of such Mortgage Pool
for the immediately preceding Distribution Date over the sum of the aggregate of
the Certificate Principal Amounts of the Senior Certificates of the related
Certificate Group immediately prior to the related Distribution Date.

        Holder or Certificateholder: The registered owner of any Certificate as
recorded on the books of the Certificate Registrar except that, solely for the
purposes of taking any action or giving any consent pursuant to this Agreement,
any Certificate registered in the name of the Depositor, the Trustee, the Master
Servicer, the Cap Provider, any Servicer, or any Affiliate thereof shall be
deemed not to be outstanding in determining whether the requisite percentage
necessary to effect any such consent has been obtained, except that, in
determining whether the Trustee shall be protected in relying upon any such
consent, only Certificates which a Responsible Officer of the Trustee knows to
be so owned shall be disregarded. The Trustee may request and conclusively rely
on certifications by the Depositor, the Master Servicer, the Cap Provider or any
Servicer in determining whether any Certificates are registered to an Affiliate
of the Depositor, the Master Servicer, the Cap Provider or such Servicer,
respectively.

        HUD: The United States Department of Housing and Urban Development, or
any successor thereto.

        Independent: When used with respect to any Accountants, a Person who is
"independent" within the meaning of Rule 2-01(b) of the Securities and Exchange
Commission's Regulation S-X. When used with respect to any other Person, a
Person who (a) is in fact independent of another specified Person and any
Affiliate of such other Person, (b) does not have any material direct financial
interest in such other Person or any Affiliate of such other Person,

                                       27
<PAGE>

and (c) is not connected with such other Person or any Affiliate of such other
Person as an officer, employee, promoter, underwriter, trustee, partner,
director or Person performing similar functions.

        Initial LIBOR Rate: 2.55%.

        Initial Net Mortgage Rate: Not applicable.

        Initial Senior Enhancement Percentage: 6.70%.

        Insurance Policy: Any Primary Mortgage Insurance Policy and any standard
hazard insurance policy, flood insurance policy, earthquake insurance policy or
title insurance policy relating to the Mortgage Loans or the Mortgaged
Properties, to be in effect as of the Closing Date or thereafter during the term
of this Agreement.

        Insurance Proceeds: Amounts paid by the insurer under any Insurance
Policy, other than amounts (i) to cover expenses incurred by or on behalf of the
applicable Servicer in connection with procuring such proceeds, (ii) to be
applied to restoration or repair of the related Mortgaged Property, or (iii)
required to be paid over to the Mortgagor pursuant to law or the related
Mortgage Note.

        Interest Distribution Amount: Not applicable.

        Interest Shortfall: With respect to any Class of Certificates and any
Distribution Date, any Accrued Certificate Interest not distributed (or added to
principal) with respect to any previous Distribution Date, other than any Net
Prepayment Interest Shortfalls.

        Intervening Assignments: The original intervening assignments of the
Mortgage, notice of transfer or equivalent instrument.

        IRS: The Internal Revenue Service.

        Latest Possible Maturity Date: The Distribution Date in February 2035.

        Lehman Brothers Holdings: Lehman Brothers Holdings Inc., or any
successor in interest.

        LIBOR: With respect to the first Accrual Period, the Initial LIBOR Rate.
With respect to each subsequent Accrual Period, the per annum rate determined
pursuant to Section 4.05 on the basis of London interbank offered rate
quotations for one month Eurodollar deposits, as such quotations may appear on
the display designated as page "LIBOR" on the Bloomberg Financial Markets
Commodities News (or such other page as may replace such page on that service
for the purpose of displaying London interbank offered quotations of major
banks).

        LIBOR Available Funds Cap: For each Distribution Date will be equal to
the product of (i) the Pool 1-6 Underlying Subordinate Rate for such
Distribution Date and (ii) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days in the related Accrual Period.

                                       28
<PAGE>

        LIBOR Certificate: Any Class B1, Class B2, Class B3, Class B4, Class B5,
Class B7, Class B10 or Class B11 Certificate.

        LIBOR Component: Not applicable.

        LIBOR Determination Date: The second London Business Day immediately
preceding the commencement of each Accrual Period with respect to any LIBOR
Certificate other than the first such Accrual Period.

        Liquidated Mortgage Loan: Any defaulted Mortgage Loan as to which the
Master Servicer or the applicable Servicer has determined that all amounts that
it expects to recover on behalf of the Trust Fund from or on account of such
Mortgage Loan have been recovered.

        Liquidation Expenses: Expenses that are incurred by the Master Servicer
or any Servicer in connection with the liquidation of any defaulted Mortgage
Loan and are not recoverable under the applicable Primary Mortgage Insurance
Policy, including, without limitation, foreclosure and rehabilitation expenses,
legal expenses and unreimbursed amounts expended pursuant to Sections 9.06, 9.16
or 9.22. Liquidation Proceeds: Cash received in connection with the liquidation
of a defaulted Mortgage Loan, whether through the sale or assignment of such
Mortgage Loan, trustee's sale, foreclosure sale or otherwise, or the sale of the
related Mortgaged Property (including any Additional Collateral) if the
Mortgaged Property (including such Additional Collateral) is acquired in
satisfaction of the Mortgage Loan, including any amounts remaining in the
related Escrow Account.

        Loan-to-Value Ratio: With respect to any Mortgage Loan, the ratio of the
principal balance of such Mortgage Loan at origination, or such other date as is
specified, to the Original Value thereof.

        London Business Day: Any day on which banks are open for dealing in
foreign currency and exchange in London, England and New York City.

        Losses: As defined in Section 10.03.

        Maintenance: Not applicable.

        Master Servicer: Aurora Loan Services LLC, or any successor in interest,
or if any successor master servicer shall be appointed as herein provided, then
such successor master servicer.

        Master Servicer Remittance Date: With respect to each Distribution Date,
the Business Day immediately preceding such Distribution Date.

        Master Servicing Fee: As to any Distribution Date and each Mortgage
Loan, an amount equal to the product of the Master Servicing Fee Rate and the
Scheduled Principal Balance of such Mortgage Loan as of the first day of the
related Due Period. The Master Servicing Fee for any Mortgage Loan shall be
payable in respect of any Distribution Date solely from the interest

                                       29
<PAGE>

portion of the Scheduled Payment or other payment or recovery with respect to
such Mortgage Loan.

        Master Servicing Fee Rate: With respect to each Mortgage Loan (other
than any Participation), 0.000% per annum.

        Material Defect: As defined in Section 2.02(c) hereof.

        Maximum Rate of Payment: The applicable rates set forth in the columns
titled "Maximum Rate %" in the schedules to the Cap Agreements attached hereto
as Exhibit N.

        MERS: Mortgage Electronic Registration Systems, Inc., a Delaware
Corporation, or any successor in interest thereto.

        MERS Mortgage Loan: Any Mortgage Loan as to which the related Mortgage,
or an Assignment of Mortgage, has been or will be recorded in the name of MERS,
as agent for the holder from time to time of the Mortgage Note.

        Moody's: Moody's Investors Service, Inc, or any successor in interest.

        Mortgage: A mortgage, deed of trust or other instrument encumbering a
fee simple interest in real property securing a Mortgage Note, together with
improvements thereto.

        Mortgage 100(SM) Loan: Not applicable.

        Mortgage File: The mortgage documents listed in Section 2.01(b)
pertaining to a particular Mortgage Loan required to be delivered to the Trustee
or a Custodian pursuant to this Agreement.

        Mortgage Loan: A Mortgage and the related notes or other evidences of
indebtedness secured by each such Mortgage conveyed, transferred, sold, assigned
to or deposited with the Trustee pursuant to Section 2.01 or Section 2.05,
including without limitation, each Mortgage Loan listed on the Mortgage Loan
Schedule, as amended from time to time. In addition, as used herein the term
"Mortgage Loan" includes the Participations, except where otherwise specified or
where the context requires otherwise.

        Mortgage Loan Sale Agreement: The agreement, dated as of January 1,
2005, for the sale of certain Mortgage Loans by Lehman Brothers Holdings to the
Depositor.

        Mortgage Loan Schedule: The schedule attached hereto as Schedule A,
which shall identify each Mortgage Loan, as such schedule may be amended from
time to time to reflect the addition of Mortgage Loans to, or the deletion of
Mortgage Loans from, the Trust Fund. The Mortgage Loan Schedule shall include,
among other information agreed upon by the Depositor, the Master Servicer, the
applicable Servicer, the Securities Administrator and the Trustee, data fields
specifying the terms and method of calculation of any Prepayment Penalty Amount
with respect to each Mortgage Loan. The Depositor shall be responsible for
providing the Trustee, the Master Servicer and the Securities Administrator with
all amendments to the Mortgage Loan Schedule.

                                       30
<PAGE>

        Mortgage Note: The note or other evidence of the indebtedness of a
Mortgagor secured by a Mortgage under a Mortgage Loan.

        Mortgage Pool: Any of Pool 1, Pool 2, Pool 3, Pool 4, Pool 5 or Pool 6.

        Mortgage Rate: As to any Mortgage Loan, the per annum rate at which
interest accrues on such Mortgage Loan.

        Mortgaged Property: Either of (x) the fee simple interest in real
property, together with improvements thereto including any exterior improvements
to be completed within 120 days of disbursement of the related Mortgage Loan
proceeds, or (y) in the case of a Cooperative Loan, the related Cooperative
Shares and Proprietary Lease, securing the indebtedness of the Mortgagor under
the related Mortgage Loan.

        Mortgagor: The obligor on a Mortgage Note.

        Negative Amortization Certificate: None.

        Net Liquidation Proceeds: With respect to any Liquidated Mortgage Loan,
the related Liquidation Proceeds net of unreimbursed expenses incurred in
connection with liquidation or foreclosure and unreimbursed Advances, Servicing
Advances and Servicing Fees received and retained in connection with the
liquidation of such Mortgage Loan.

        Net Mortgage Rate: With respect to any Mortgage Loan, the Mortgage Rate
thereof reduced by the sum of the applicable Master Servicing Fee Rate,
Servicing Fee Rate, Securities Administrator Fee Rate, the Retained Interest
Rate (if applicable) and any mortgage insurance premium rate (if applicable).

        Net Prepayment Interest Shortfall: With respect to any Master Servicer
Remittance Date, the excess, if any, of any Prepayment Interest Shortfalls with
respect to the Mortgage Loans in such Mortgage Pool for such date over the sum
of any amounts paid by the applicable Servicer with respect to such shortfalls
and any amount that is required to be paid by the Master Servicer in respect of
such shortfalls pursuant to this Agreement.

        Net WAC: With respect to each Mortgage Pool and any Distribution Date,
the weighted average of Net Mortgage Rates of the Mortgage Loans in the related
Mortgage Pool at the beginning of the related Due Period, weighted on the basis
of their Scheduled Principal Balances at the beginning of the related Due
Period.

        Non-AP Percentage: Not applicable.

        Non-AP Senior Certificate: Not applicable.

        Non-Book-Entry Certificate: Any Certificate other than a Book-Entry
Certificate.

        Non-Discount Mortgage Loan: None.

        Non-MERS Mortgage Loan: Any Mortgage Loan other than a MERS Mortgage
Loan.

                                       31
<PAGE>

        Non-permitted Foreign Holder: As defined in Section 3.03(f).

        Non-U.S. Person: Any person other than (i) a citizen or resident of the
United States; (ii) a corporation (or entity treated as a corporation for tax
purposes) created or organized in the United States or under the laws of the
United States or of any state thereof, including, for this purpose, the District
of Columbia; (iii) a partnership (or entity treated as a partnership for tax
purposes) organized in the United States or under the laws of the United States
or of any state thereof, including, for this purpose, the District of Columbia
(unless provided otherwise by future Treasury regulations); (iv) an estate whose
income is includible in gross income for United States income tax purposes
regardless of its source; or (v) a trust, if a court within the United States is
able to exercise primary supervision over the administration of the trust and
one or more U.S. Persons have authority to control all substantial decisions of
the trust. Notwithstanding the last clause of the preceding sentence, to the
extent provided in Treasury regulations, certain trusts in existence on August
20, 1996, and treated as U.S. Persons prior to such date, may elect to continue
to be U.S. Persons.

        Notional Amount: With respect to any Notional Certificate and any
Distribution Date, such Certificate's Percentage Interest of the Class Notional
Amount of such Class of Certificates for such Distribution Date.

        Notional Certificate: Any Class 3-AX, Class B1X, Class B2X, Class B3X,
Class B4X, Class B5X, Class B7X, Class B10X or Class B11X Certificate.

        Notional Component: None.

        Offering Document: Either of the private placement memorandum dated
January 27, 2005 relating to the Class B11, Class B11X, Class B12 and Class B13
Certificates, or the Prospectus.

        Officer's Certificate: A certificate signed by the Chairman of the
Board, any Vice Chairman, the President, any Vice President or any Assistant
Vice President of a Person, and in each case delivered to the Trustee.

        Opinion of Counsel: A written opinion of counsel, reasonably acceptable
in form and substance to the Trustee, and who may be in-house or outside counsel
to the Depositor, the Master Servicer or the applicable Servicer but which must
be Independent outside counsel with respect to any such opinion of counsel
concerning the transfer of any Residual Certificate or concerning certain
matters with respect to ERISA, or the taxation, or the federal income tax
status, of each REMIC. For purpose of Section 2.01(c)(i), the Opinion of Counsel
referred to therein may take the form of a memorandum of law or other acceptable
assurance.

        Original Credit Support Percentage: With respect to any Class of
Subordinate Certificates (other than the Class B13 Certificates), the Credit
Support Percentage with respect to such Class on the Closing Date.

        Original Group Subordinate Amount: As to any Mortgage Pool, the Group
Subordinate Amount for such Mortgage Pool on the Closing Date.

                                       32
<PAGE>

        Original Value: The lesser of (a) the Appraised Value of a Mortgaged
Property at the time the related Mortgage Loan was originated and (b) if the
Mortgage Loan was made to finance the acquisition of the related Mortgaged
Property, the purchase price paid for the Mortgaged Property by the Mortgagor at
the time the related Mortgage Loan was originated.

        Parent Power(SM) Loan: Not applicable.

        Participation Agreement: None.

        Participation: None.

        Participation Schedule: None.

        Participation Master Servicer: Not applicable.

        Paying Agent: Any paying agent appointed pursuant to Section 3.08.

        Permitted Transferee: As defined in Section 3.03(f).

        Percentage Interest: With respect to any Certificate and the related
Class, such Certificate's percentage interest in the undivided beneficial
ownership interest in the Trust Fund evidenced by all Certificates of the same
Class as such Certificate. With respect to any Certificate other than a Notional
Certificate, the Percentage Interest evidenced thereby shall equal the initial
Certificate Principal Amount thereof divided by the initial Class Principal
Amount of all Certificates of the same Class. With respect to any Notional
Certificate and any Class P Certificate, the Percentage Interest evidenced
thereby shall be as specified on the face thereof.

        Person: Any individual, corporation, partnership, joint venture,
association, joint-stock company, limited liability company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

        Placement Agent: Lehman Brothers Inc.

        Plan Asset Regulations: Not applicable.

        Pledged Asset Loan-to-Value Ratio: Not applicable.

        Pledged Asset Mortgage Loan: None.

        Pool 1: The aggregate of the Mortgage Loans identified on the Mortgage
Loan Schedule as being included in Pool 1.

        Pool 1-6 Underlying Subordinate Rate: The weighted average of the
Underlying Subordinate Rate for Pool 1, Pool 2, Pool 3, Pool 4, Pool 5 and Pool
6, weighted by the corresponding Group Subordinate Amounts.

        Pool 2: The aggregate of the Mortgage Loans identified on the Mortgage
Loan Schedule as being included in Pool 2.

                                       33
<PAGE>

        Pool 3: The aggregate of the Mortgage Loans identified on the Mortgage
Loan Schedule as being included in Pool 3.

        Pool 4: The aggregate of the Mortgage Loans identified on the Mortgage
Loan Schedule as being included in Pool 4.

        Pool 5: The aggregate of the Mortgage Loans identified on the Mortgage
Loan Schedule as being included in Pool 5.

        Pool 6: The aggregate of the Mortgage Loans identified on the Mortgage
Loan Schedule as being included in Pool 6.

        Pool Balance: As to each Mortgage Pool and any Distribution Date, the
sum of the Scheduled Principal Balance of the Mortgage Loans included in such
Mortgage Pool.

        Prepayment Interest Excess: With respect to any Distribution Date and
any Principal Prepayment in full received on the Mortgage Loans serviced by
Aurora from the first day through the sixteenth day of the month during which
such Distribution Date occurs, all amounts paid in respect of interest at the
applicable Net Mortgage Rate on such Principal Prepayment in full.

        Prepayment Interest Shortfall: With respect to any Distribution Date and
(x) any Principal Prepayment in part (other than those Mortgage Loans serviced
by Washington Mutual Bank, FA) and, with respect to those Mortgage Loans
serviced by Servicers other than Aurora, any Principal Prepayment in full, (y)
any Principal Prepayment in full with respect to those Mortgage Loans serviced
by Aurora if received on or after the seventeenth day of the month immediately
preceding the month of such Distribution Date but on or before the last day of
the month immediately preceding the month of such Distribution Date and (z) any
Principal Prepayment in full or in part with respect to those Mortgage Loans
serviced by Countrywide Home Loans Servicing LP if received on or after the
second day of the month immediately preceding the month of such Distribution
Date but on or before the last day of the month immediately preceding the month
of such Distribution Date, the difference between (i) one full month's interest
at the applicable Mortgage Rate (after giving effect to any applicable Relief
Act Reduction), as reduced by the applicable Servicing Fee Rate, the Master
Servicing Fee Rate and the applicable Retained Interest Rate, if any, on the
outstanding principal balance of such Mortgage Loan immediately prior to such
prepayment and (ii) the amount of interest actually received with respect to
such Mortgage Loan in connection with such Principal Prepayment.

        Prepayment Penalty Amounts: With respect to any Distribution Date, all
premiums or charges paid by the obligors under the related Mortgage Notes due to
Principal Prepayments collected by the applicable Servicer during the
immediately preceding Prepayment Period, if any.

        Prepayment Period: With respect to those Mortgage Loans serviced by
Servicers other than Aurora and Countrywide Home Loans Servicing LP, any
Distribution Date and any Principal Prepayment, whether in part or in full
(including any liquidation), the calendar month immediately preceding the month
in which such Distribution Date occurs. With respect to any Distribution Date
and a Principal Prepayment in full (including any liquidation) with respect to
those Mortgage Loans serviced by Aurora, the period from the seventeenth (or, in
the case of the

                                       34
<PAGE>

first Distribution Date, the first) day of the month immediately preceding the
month of such Distribution Date to the sixteenth day of the month of such
Distribution Date. With respect to those Mortgage Loans serviced by Aurora, any
Distribution Date and any Principal Prepayment in part, the calendar month
immediately preceding the month in which such Distribution Date occurs. With
respect to any Distribution Date and a Principal Prepayment in full or in part
(including any liquidation) with respect to those Mortgage Loans serviced by
Countrywide Home Loans Servicing LP, the period from the second day of the month
immediately preceding the month of such Distribution Date to the first day of
the month of such Distribution Date.

        Primary Mortgage Insurance Policy: Mortgage guaranty insurance, if any,
on an individual Mortgage Loan, as evidenced by a policy or certificate.

        Principal Amount Schedules: Not applicable.

        Principal Only Certificate: Not applicable.

        Principal Prepayment: Any Mortgagor payment of principal (other than a
Balloon Payment) or other recovery of principal on a Mortgage Loan that is
recognized as having been received or recovered in advance of its scheduled Due
Date and applied to reduce the principal balance of the Mortgage Loan in
accordance with the terms of the Mortgage Note or the applicable Servicing
Agreement.

        Proceeding: Not applicable.

        Proprietary Lease: With respect to any Cooperative Unit, a lease or
occupancy agreement between a Cooperative Corporation and a holder of related
Cooperative Shares.

        Prospectus: The prospectus supplement dated January 27, 2005, together
with the accompanying prospectus dated January 25, 2005, relating to the Senior
Certificates and the Class B1, Class B1X, Class B2, Class B2X, Class B3, Class
B3X, Class B4, Class B4X, Class B5, Class B5X, Class B6, Class B7, Class B7X,
Class B8, Class B9, Class B10 and Class B10X Certificates.

        Purchase Price: With respect to the repurchase of a Mortgage Loan
pursuant to this Agreement, an amount equal to the sum of (a) 100% of the unpaid
principal balance of such Mortgage Loan, (b) accrued interest thereon at the
Mortgage Rate, from the date as to which interest was last paid to (but not
including) the Due Date immediately preceding the next Distribution Date, (c)
any unreimbursed Servicing Advances with respect to such Mortgage Loan and (d)
any costs and damages incurred by the Trust Fund in connection with any
violation by such Mortgage Loan of any predatory- or abusive-lending law. The
Master Servicer or the applicable Servicer (or the Securities Administrator, if
applicable) shall be reimbursed from the Purchase Price for any Mortgage Loan or
related REO Property for any Advances made with respect to such Mortgage Loan
that are reimbursable to the Master Servicer, such Servicer or the Securities
Administrator under this Agreement or the applicable Servicing Agreement, as
well as any unreimbursed Servicing Advances and accrued and unpaid Master
Servicing Fees or Servicing Fees, as applicable.

        QIB: As defined in Section 3.03(c).

                                       35
<PAGE>

        Qualified GIC: A guaranteed investment contract or surety bond providing
for the investment of funds in the Collection Account or the Certificate Account
and insuring a minimum, fixed or floating rate of return on investments of such
funds, which contract or surety bond shall:

        (a)     be an obligation of an insurance company or other corporation
whose long-term debt is rated by each Rating Agency in one of its two highest
rating categories or, if such insurance company has no long-term debt, whose
claims paying ability is rated by each Rating Agency in one of its two highest
rating categories, and whose short-term debt is rated by each Rating Agency in
its highest rating category;

        (b)     provide that the Trustee may exercise all of the rights under
such contract or surety bond without the necessity of taking any action by any
other Person;

        (c)     provide that if at any time the then current credit standing of
the obligor under such guaranteed investment contract is such that continued
investment pursuant to such contract of funds would result in a downgrading of
any rating of the Certificates, the Trustee shall terminate such contract
without penalty and be entitled to the return of all funds previously invested
thereunder, together with accrued interest thereon at the interest rate provided
under such contract to the date of delivery of such funds to the Trustee;

        (d)     provide that the Trustee's interest therein shall be
transferable to any successor trustee hereunder; and

        (e)     provide that the funds reinvested thereunder and accrued
interest thereon be returnable to the Collection Account or the Certificate
Account, as the case may be, not later than the Business Day prior to any
Distribution Date.

        Qualified Insurer: An insurance company duly qualified as such under the
laws of the states in which the related Mortgaged Properties are located, duly
authorized and licensed in such states to transact the applicable insurance
business and to write the insurance provided and whose claims paying ability is
rated by each Rating Agency in its highest rating category or whose selection as
an insurer will not adversely affect the rating of the Certificates.

        Qualifying Substitute Mortgage Loan: In the case of a Mortgage Loan
substituted for a Deleted Mortgage Loan, a Mortgage Loan that, on the date of
substitution, (i) has a Scheduled Principal Balance (together with that of any
other mortgage loan substituted for the same Deleted Mortgage Loan) as of the
Due Date in the month in which such substitution occurs not in excess of the
Scheduled Principal Balance of the related Deleted Mortgage Loan, provided,
however, that, to the extent that the Scheduled Principal Balance of such
Mortgage Loan is less than the Scheduled Principal Balance of the related
Deleted Mortgage Loan, then such differential in principal amount, together with
interest thereon at the applicable Mortgage Rate net of the applicable Master
Servicing Fee and the applicable Servicing Fee from the date as to which
interest was last paid through the end of the Due Period in which such
substitution occurs, shall be paid by the party effecting such substitution to
the Master Servicer for deposit into the Collection Account, and shall be
treated as a Principal Prepayment hereunder; (ii) has a Net Mortgage Rate not
lower than the Net Mortgage Rate of the related Deleted Mortgage Loan and

                                       36
<PAGE>

will be a Discount Mortgage Loan if the Deleted Mortgage Loan was a Discount
Mortgage Loan or a Non-Discount Mortgage Loan if the Deleted Mortgage Loan was a
Non-Discount Mortgage Loan; (iii) has a remaining stated term to maturity not
more than eighteen months longer than, and not more than eighteen months shorter
than, the remaining term to stated maturity of the related Deleted Mortgage
Loan; (iv) (A) has a Loan-to-Value Ratio as of the date of such substitution of
not greater than 80%, provided, however, that if the related Deleted Mortgage
Loan has a Loan-to-Value Ratio of greater than 80%, then the Loan-to-Value Ratio
of such substitute Mortgage Loan may be greater than 80% but shall not be
greater than the Loan-to-Value Ratio of the related Deleted Mortgage Loan and
(B) the addition of such substitute Mortgage Loan does not increase the weighted
average Loan-to-Value Ratio of the related Mortgage Pool by more than 5%; (v)
will comply with all of the representations and warranties relating to Mortgage
Loans set forth herein, as of the date as of which such substitution occurs;
(vi) is not a Cooperative Loan unless the related Deleted Mortgage Loan was a
Cooperative Loan; (vii) if applicable, has the same index as and a margin not
less than that of the related Deleted Mortgage Loan; (viii) has not been
delinquent for a period of more than 30 days more than once in the twelve months
immediately preceding such date of substitution; (ix) is covered by a Primary
Mortgage Insurance Policy if the related Deleted Mortgage Loan is so covered,
and the Loan-to-Value Ratio of such Mortgage Loan is greater than 80%; (x) has a
Credit Score not greater than 20 points lower than the Credit Score of the
related Deleted Mortgage Loan, provided, however, that if the Deleted Mortgage
Loan does not have a Credit Score, then such substitute Mortgage Loan shall have
a Credit Score equal to or greater than 700; (xi) has its initial adjustment
date after the related Reset Date; and (xii) has a gross margin no less than the
related Deleted Mortgage Loan. In the event that either one mortgage loan is
substituted for more than one Deleted Mortgage Loan or more than one mortgage
loan is substituted for one or more Deleted Mortgage Loans, then (a) the
Scheduled Principal Balance referred to in clause (i) above shall be determined
such that the aggregate Scheduled Principal Balance of all such substitute
Mortgage Loans shall not exceed the aggregate Scheduled Principal Balance of all
Deleted Mortgage Loans and (b) each of (1) the rate referred to in clause (ii)
above, (2) the remaining term to stated maturity referred to in clause (iii)
above, (3) the Loan-to-Value Ratio referred to in clause (iv) above and (4) the
Credit Score referred to in clause (x) above shall be determined on a weighted
average basis, provided that the final scheduled maturity date of any Qualifying
Substitute Mortgage Loan shall not exceed the Final Scheduled Distribution Date
of any Class of Certificates. Whenever a Qualifying Substitute Mortgage Loan is
substituted for a Deleted Mortgage Loan pursuant to this Agreement, the party
effecting such substitution shall certify such qualification in writing to the
Trustee and the Master Servicer.

        Rating Agency: Each of S&P or Moody's.

        Realized Loss: (a) with respect to each Liquidated Mortgage Loan, an
amount equal to (i) the unpaid principal balance of such Mortgage Loan as of the
date of liquidation, plus (ii) interest at the applicable Net Mortgage Rate from
the date as to which interest was last paid up to the last day of the month of
such liquidation, minus (iii) Liquidation Proceeds received, net of amounts that
are reimbursable to the Master Servicer or the applicable Servicer with respect
to such Mortgage Loan (other than Advances of principal and interest) including
expenses of liquidation or (b) with respect to each Mortgage Loan that has
become the subject of a Deficient Valuation, the difference between the unpaid
principal balance of such Mortgage Loan immediately prior to such Deficient
Valuation and the unpaid principal balance of such

                                       37
<PAGE>

Mortgage Loan as reduced by the Deficient Valuation. In determining whether a
Realized Loss on a Liquidated Mortgage Loan is a Realized Loss of interest or
principal, Liquidation Proceeds shall be allocated, first, to payment of
expenses related to such Liquidated Mortgage Loan (including payment of any
Retained Interest), then to accrued unpaid interest and finally to reduce the
principal balance of the Mortgage Loan.

        Recognition Agreement: With respect to any Cooperative Loan, an
agreement between the related Cooperative Corporation and the originator of such
Mortgage Loan to establish the rights of such originator in the related
Cooperative Property.

        Record Date: With respect to any Distribution Date and each Class of
Certificates (other than the Class B1, Class B1X, Class B2, Class B2X, Class B3,
Class B3X, Class B4, Class B4X, Class B5, Class B5X, Class B7, Class B7X, Class
B10, Class B10X, Class B11 and Class B11X Certificates), the close of business
on the last Business Day of the month immediately preceding the month in which
such Distribution Date occurs. The Record Date for each Distribution Date for
the Class B1, Class B1X, Class B2, Class B2X, Class B3, Class B3X, Class B4,
Class B4X, Class B5, Class B5X, Class B7, Class B7X, Class B10, Class B10X,
Class B11 and Class B11X Certificates will be the close of business on the
Business Day immediately preceding such Distribution Date.

        Redemption Certificate: None.

        Reference Banks: As defined in Section 4.05(c).

        Regulation S: Regulation S promulgated under the Act or any successor
provision thereto, in each case as the same may be amended from time to time;
and all references to any rule, section or subsection of, or definition or term
contained in, Regulation S means such rule, section, subsection, definition or
term, as the case may be, or any successor thereto, in each case as the same may
be amended from time to time.

        Regulation S Global Security: The meaning specified in Section 3.01(c).

        Relief Act Reduction: With respect to any Mortgage Loan as to which
there has been a reduction in the amount of interest collectible thereon as a
result of application of the Servicemembers Civil Relief Act or any similar
state law, any amount by which interest collectible on such Mortgage Loan for
the Due Date in the related Due Period is less than interest accrued thereon for
the applicable one-month period at the Mortgage Rate without giving effect to
such reduction.

        REMIC: Each of REMIC 1, REMIC 2 and the Upper Tier REMIC, as described
in the Preliminary Statement hereto.

        REMIC Provisions: The provisions of the federal income tax law relating
to real estate mortgage investment conduits, which appear at sections 860A
through 860G of Subchapter M of Chapter 1 of the Code, and related provisions,
and regulations, including proposed regulations and rulings, and administrative
pronouncements promulgated thereunder, as the foregoing may be in effect from
time to time.

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<PAGE>

        REMIC 1: REMIC 1 as described in the Preliminary Statement hereto.

        REMIC 1 Interest: Any one of the classes of REMIC 1 Interests described
in the Preliminary Statement hereto.

        REMIC 1 Regular Interest: Any of the REMIC 1 Interests other than the
Class LT1-R Interest.

        REMIC 1 Subordinated Balance Ratio: As of any Distribution Date, the
ratio among the Uncertificated Principal Balances of each of the REMIC 1 Regular
Interests ending with the designation "A" that is equal to the ratio among, with
respect to each such REMIC 1 Regular Interest, the excess of (x) the aggregate
Scheduled Principal Balance of the Mortgage Loans in the related Mortgage Pool
over (y) the aggregate Class Principal Amounts of the Senior Certificates of the
Certificate Group related to such Mortgage Pool (after giving effect to
distributions on such Distribution Date).

        REMIC 2: REMIC 2 as described in the Preliminary Statement hereto.

        REMIC 2 Interest: Any one of the classes of REMIC 2 Interests described
in the Preliminary Statement hereto.

        REMIC 2 Regular Interest: Any of the REMIC 2 Interests other than the
Class LT2-R Interest.

        REMIC 3: REMIC 3 as described under the heading "Upper Tier REMIC" in
the Preliminary Statement hereto.

        REMIC 3 Interest: Any one of the classes of REMIC 3 Interests described
in the Preliminary Statement hereto.

        REMIC 3 Regular Interest: Any of (i) the Class 1-A1, Class 1-A2, Class
2-A, Class 3-A, Class 3-AX, Class 4-A1, Class 4-A2, Class 5-A1, Class 5-A2,
Class B1X, Class B2X, Class B3X, Class B4X, Class B5X, Class B6, Class B7X,
Class B8, Blass B9, Class B12 and Class B13 Certificates and (ii) the
uncertificated REMIC regular interests represented by (w) each of the Class Z
Components and (x) the rights associated with the Class B1, Class B2, Class B3,
Class B4, Class B5, Class B7, Class B10, Class B10X, Class B11 and Class B11X
Certificates other than rights to receive payments in respect of Floating Rate
Certificate Shortfalls and Excess REMIC Payments.

        REMIC 3 Residual Interest: The sole class of residual interest in the
Upper-Tier REMIC, representing the rights to receive all distributions on the
Class R Certificate other than distributions in respect of the Class LT1-R and
Class LT2-R Interests.

        Remittance Date: The day in each month on which each Servicer is
required to remit payments to the account maintained by the Master Servicer, as
specified in the applicable Servicing Agreement, which is the 18th day of each
month (or if such 18th day is not a Business Day, the next succeeding Business
Day).

                                       39
<PAGE>

        REO Property: A Mortgaged Property acquired by the Trust Fund through
foreclosure or deed-in-lieu of foreclosure in connection with a defaulted
Mortgage Loan or otherwise treated as having been acquired pursuant to the REMIC
Provisions.

        Repurchase Price: As defined in Section 7.01.

        Reserve Interest Rate: As defined in Section 4.05(a)(ii).

        Reset Date: With respect to Pool 3, December 2009.

        Residual Certificate: Any Class R Certificate.

        Responsible Officer: When used with respect to the Trustee or the
Securities Administrator, any Vice President, Assistant Vice President, the
Secretary, any assistant secretary, any Trust Officer, the Treasurer, or any
assistant treasurer, working in its corporate trust department and having direct
responsibility for the administration of this Agreement and any other officer to
whom a matter arising under this Agreement may be referred.

        Restricted Certificate: Any Class B11, Class B11X, Class B12 or Class
B13 Certificate but excluding any Regulation S Global Security.

        Restricted Global Security: The meaning specified in Section 3.01(c).

        Retained Interest: Interest in respect of each Employee Mortgage Loan,
retained in each case by the Retained Interest Holder at the Retained Interest
Rate.

        Retained Interest Holder: Lehman Brothers Holdings or any successor in
interest by assignment or otherwise.

        Retained Interest Rate: For each Due Period, 0.00% per annum; provided,
however, if the Mortgagor of the Employee Mortgage Loan ceases to be an employee
of Lehman Brothers Inc. or its Affiliates, 0.25% per annum.

        Rounding Account: Not applicable.

        S&P: Standard & Poor's, a division of The McGraw-Hill Companies, Inc.,
or any successor in interest.

        Scheduled Payment: Each scheduled payment of principal and interest (or
of interest only, if applicable) to be paid by the Mortgagor on a Mortgage Loan,
as reduced (except where otherwise specified herein) by the amount of any
related Debt Service Reduction (excluding all amounts of principal and interest
that were due on or before the Cut-off Date whenever received) and, in the case
of an REO Property, an amount equivalent to the Scheduled Payment that would
have been due on the related Mortgage Loan if such Mortgage Loan had remained in
existence. In the case of any bi-weekly payment Mortgage Loan, all payments due
on such Mortgage Loan during any Due Period shall be deemed collectively to
constitute the Scheduled Payment due on such Mortgage Loan in such Due Period.

                                       40
<PAGE>

        Scheduled Principal Amount: Not applicable.

        Scheduled Principal Balance: With respect to (i) any Mortgage Loan as of
any Distribution Date, the principal balance of such Mortgage Loan at the close
of business on the Cut-off Date, after giving effect to principal payments due
on or before the Cut-off Date, whether or not received, less an amount equal to
principal payments due after the Cut-off Date and on or before the Due Date in
the related Due Period, whether or not received from the Mortgagor or advanced
by the applicable Servicer or the Master Servicer, and all amounts allocable to
unscheduled principal payments (including Principal Prepayments, Net Liquidation
Proceeds, Insurance Proceeds and condemnation proceeds, in each case to the
extent identified and applied prior to or during the applicable Prepayment
Period) and (ii) any REO Property as of any Distribution Date, the Scheduled
Principal Balance of the related Mortgage Loan on the Due Date immediately
preceding the date of acquisition of such REO Property by or on behalf of the
Trustee (reduced by any amount applied as a reduction of principal on the
Mortgage Loan). With respect to any Mortgage Loan as of the Cut-off Date, as
specified in the Mortgage Loan Schedule or the Participation Schedule, as the
case may be.

        Securities Administrator: Wells Fargo Bank, National Association, not in
its individual capacity but solely as Securities Administrator, or any successor
in interest, or if any successor Securities Administrator shall be appointed as
herein provided, then such successor Securities Administrator.

        Securities Administrator Fee: As to any Distribution Date and each
Mortgage Loan, an amount equal to the product of the Securities Administrator
Fee Rate and the Scheduled Principal Balance of such Mortgage Loan as of the
first day of the related Due Period.

        Securities Administrator Fee Rate: 0.0035% per annum.

        Security Agreement: With respect to any Cooperative Loan, the agreement
between the owner of the related Cooperative Shares and the originator of the
related Mortgage Note that defines the terms of the security interest in such
Cooperative Shares and the related Proprietary Lease.

        Seller: Lehman Brothers Holdings or any successor in interest.

        Senior Certificate: Any Class 1-A1, Class 1-A2, Class 2-A, Class 3-A,
Class 3-AX, Class 4-A1, Class 4-A2, Class 5-A1, Class 5-A2, Class 6-A or Class R
Certificate.

        Senior Enhancement Percentage: For each Mortgage Pool for any
Distribution Date the percentage equivalent of a fraction, the numerator of
which is the sum of the Class Principal Amounts of the Subordinate Certificates
and the denominator of which is the sum of the Pool Balances for each Mortgage
Pool for the immediately preceding Distribution Date.

        Senior Percentage: With respect to each Mortgage Pool and any
Distribution Date, the percentage equivalent of the fraction, the numerator of
which is the aggregate of the Certificate Principal Amounts of the Class 1-A1,
Class 1-A2 and Class R Certificates, in the case of Pool 1, the Class 2-A
Certificates, in the case of Pool 2, the Class 3-A Certificates, in the case of
Pool 3, the Class 4-A1 and Class 4-A2 Certificates, in the case of Pool 4, the
Class 5-A1 and Class 5-A2

                                       41
<PAGE>

Certificates, in the case of Pool 5 and the Class 6-A Certificates, in the case
of Pool 6, in each case immediately prior to such Distribution Date and the
denominator of which is the related Pool Balance for the immediately preceding
Distribution Date.

        Senior Prepayment Percentage: With respect to each Mortgage Pool and any
Distribution Date occurring during the seven years beginning on the first
Distribution Date, 100%, except as described herein below. With respect to each
Mortgage Pool and for any Distribution Date occurring on or after the seventh
anniversary of the first Distribution Date, the related Senior Percentage plus
the following percentage of the related Subordinate Percentage for such
Distribution Date: for any Distribution Date in the first year thereafter, 70%;
for any Distribution Date in the second year thereafter, 60%; for any
Distribution Date in the third year thereafter, 40%; for any Distribution Date
in the fourth year thereafter, 20%; and for any subsequent Distribution Date,
0%; provided, however, (i) if on any of the foregoing Distribution Dates the
Senior Enhancement Percentage is less than the Initial Senior Enhancement
Percentage, the Senior Prepayment Percentage for each Mortgage Pool on such
Distribution Date shall once again equal 100%, (ii) unless the condition
described in clause (i) has occurred, if on any Distribution Date before the
Distribution Date in February 2008, prior to giving effect to any distributions
on such Distribution Date, the Senior Enhancement Percentage for such
Distribution Date is greater than or equal to twice the Initial Senior
Enhancement Percentage, then the Senior Prepayment Percentage for each Mortgage
Pool for such Distribution Date will equal the related Senior Percentage plus
50% of the related Subordinate Percentage for such Mortgage Pool and (iii)
unless the condition described in clause (i) has occurred, if on any
Distribution Date on or after the Distribution Date in February 2008, prior to
giving effect to any distributions on such Distribution Date, the Senior
Enhancement Percentage for such Distribution Date is greater than or equal to
twice the Initial Senior Enhancement Percentage, then the Senior Prepayment
Percentage for each Mortgage Pool on such Distribution Date will equal the
related Senior Percentage.

        Notwithstanding the foregoing, no decrease in the Senior Prepayment
Percentage for any Mortgage Pool below the respective levels in effect for the
most recent prior period set forth in the paragraph above shall be effective on
any Distribution Date if, as of the first Distribution Date as to which any such
decrease applies, (i) the average outstanding principal balance on such
Distribution Date and for the preceding five Distribution Dates of all Mortgage
Loans in the related Mortgage Pool that were delinquent 60 days or more
(including for this purpose any Mortgage Loans in foreclosure and the Scheduled
Payments that would have been due on Mortgage Loans with respect to which the
related Mortgaged Property has been acquired by the Trust Fund if the related
Mortgage Loan had remained in existence) is greater than or equal to 50% of the
applicable Group Subordinate Amount immediately prior to such Distribution Date
or (ii) cumulative Realized Losses with respect to the Mortgage Loans in the
related Mortgage Pool exceed (a) with respect to the Distribution Date prior to
the third anniversary of the first Distribution Date, 20% of the related
Original Group Subordinate Amount, (b) with respect to the Distribution Date on
or after the third anniversary and prior to the sixth anniversary of the first
Distribution Date, 30% of the related Original Group Subordinate Amount, (c)
with respect to the Distribution Date on or after the sixth anniversary and
prior to the seventh anniversary of the first Distribution Date, 35% of the
related Original Group Subordinate Amount, (d) with respect to the Distribution
Date on or after the seventh anniversary and prior to the eighth anniversary of
the first Distribution Date, 40% of the related Original Group Subordinate

                                       42
<PAGE>

Amount, (e) with respect to the Distribution Date on or after the eighth
anniversary and prior to the ninth anniversary of the first Distribution Date,
45% of the related Original Group Subordinate Amount, and (f) with respect to
the Distribution Date on or after the ninth anniversary of the first
Distribution Date or thereafter, 50% of the related Original Group Subordinate
Amount. After the Class Principal Amount of each Class of Senior Certificates in
any Certificate Group has been reduced to zero, the Senior Prepayment Percentage
for the related Mortgage Pool shall be 0%.

        Senior Principal Distribution Amount: For each Certificate Group and any
Distribution Date, the sum of the following amounts:

                (i)     the product of (a) the related Senior Percentage for
        such date and (b) the principal portion of each Scheduled Payment
        (without giving effect to any Debt Service Reduction occurring prior to
        the Bankruptcy Coverage Termination Date), on each Mortgage Loan in the
        related Mortgage Pool due during the related Due Period;

                (ii)    the product of (a) the related Senior Prepayment
        Percentage for such date and (b) each of the following amounts: (1) each
        Principal Prepayment on the Mortgage Loans in the related Mortgage Pool
        collected during the related Prepayment Period, (2) each other
        unscheduled collection, including any Subsequent Recovery, Insurance
        Proceeds and Net Liquidation Proceeds (other than with respect to any
        Mortgage Loan in the related Mortgage Pool that was finally liquidated
        during the related Prepayment Period) representing or allocable to
        recoveries of principal received during the related Prepayment Period,
        and (3) the principal portion of all proceeds of the purchase of any
        Mortgage Loan in the related Mortgage Pool (or, in the case of a
        permitted substitution, amounts representing a principal adjustment)
        actually received by the Securities Administrator during the related
        Prepayment Period;

                (iii)   with respect to unscheduled recoveries allocable to
        principal of any Mortgage Loan in the related Mortgage Pool that was
        finally liquidated during the related Prepayment Period, the lesser of
        (a) the related net Liquidation Proceeds allocable to principal and (b)
        the product of the related Senior Prepayment Percentage for such date
        and the Scheduled Principal Balance of such related Mortgage Loan at the
        time of liquidation; and

                (iv)    any amounts described in clauses (i) through (iii) for
        any previous Distribution Date that remain unpaid.

If on any Distribution Date the Class Principal Amount of each Class of Senior
Certificates in any Certificate Group has been reduced to zero, the Senior
Principal Distribution Amount for such Certificate Group for such date
(following such reduction) and each subsequent Distribution Date shall be zero.

        Servicer: Any Servicer that has entered into any of the Servicing
Agreements attached as Exhibit E hereto, or any successor in interest.
Initially, the Servicers are Aurora, Bank of America, National Association,
Cendant Mortgage Corporation, Colonial Savings, F.A.,

                                       43
<PAGE>

Countrywide Home Loans Servicing LP, IndyMac Bank, F.S.B., Midwest Loan
Services, Inc., Washington Mutual Bank, FA and Wells Fargo Bank, N.A.

        Servicing Advances: Expenditures incurred by a Servicer in connection
with the liquidation or foreclosure of a Mortgage Loan which are eligible for
reimbursement under the applicable Servicing Agreement.

        Servicing Agreement: Each Servicing Agreement between a Servicer and the
Seller, dated as of January 1, 2005, attached hereto in Exhibit E, and any other
servicing agreement entered into between a successor servicer and the Seller or
the Trustee pursuant to the terms hereof.

        Servicing Fee: With respect to each Servicer, the Servicing Fee
specified in the applicable Servicing Agreement and set forth on the Mortgage
Loan Schedule.

        Servicing Fee Rate: With respect to a Servicer, the rate specified in
the applicable Servicing Agreement.

        Servicing Officer: Any officer of the Master Servicer involved in or
responsible for the administration and servicing or master servicing of the
Mortgage Loans whose name appears on a list of servicing officers furnished by
the Master Servicer to the Trustee, as such list may from time to time be
amended.

        Similar Law: As defined in Section 3.03(d).

        Special Hazard Loss: With respect to the Mortgage Loans, (x) any
Realized Loss arising out of any direct physical loss or damage to a Mortgaged
Property which is caused by or results from any cause, exclusive of any loss
covered by a hazard policy or a flood insurance policy required to be maintained
in respect of such Mortgaged Property and any loss caused by or resulting from
(i) normal wear and tear, (ii) conversion or other dishonest act on the part of
the Trustee, the Master Servicer, any Servicer or any of their agents or
employees, or (iii) errors in design, faulty workmanship or faulty materials,
unless the collapse of the property or a part thereof ensues, or (y) any
Realized Loss arising from or related to the presence or suspected presence of
hazardous wastes, or hazardous substances on a Mortgaged Property unless such
loss is covered by a hazard policy or flood insurance policy required to be
maintained in respect of such Mortgaged Property, in any case, as reported by
any Servicer to the Master Servicer.

        Special Hazard Loss Limit: As of the Cut-off Date, $14,301,064, which
amount shall be reduced from time to time to an amount equal on any Distribution
Date to the lesser of (a) the greatest of (i) 1% of the aggregate of the
Scheduled Principal Balances of the Mortgage Loans; (ii) twice the Scheduled
Principal Balance of the Mortgage Loan having the highest Scheduled Principal
Balance, and (iii) the aggregate Scheduled Principal Balances of the Mortgage
Loans secured by Mortgaged Properties located in the single California postal
zip code area having the highest aggregate Scheduled Principal Balance of
Mortgage Loans of any such postal zip code area and (b) the Special Hazard Loss
Limit as of the Closing Date less the amount, if any, of Special Hazard Losses
incurred with respect to Mortgage Loans since the Closing Date.

        Specified Rating: Not applicable.

                                       44
<PAGE>

        Startup Day: The day designated as such pursuant to Section 10.01(b)
hereof.

        Strike Rate: The applicable rates set forth in the columns titled
"Strike Rate %" in the schedules to the Cap Agreements attached hereto as
Exhibit N.

        Subordinate Certificate: Any Class B Certificate.

        Subordinate Certificate Writedown Amount: As to any Distribution Date,
the amount by which (i) the sum of the Class Principal Amounts of all the
Certificates (after giving effect to the distribution of principal and the
allocation of Realized Losses in reduction of the Certificate Principal Amounts
of the Certificates on such Distribution Date) exceeds (ii) the aggregate
Scheduled Principal Balance of the Mortgage Loans for such Distribution Date.

        Subordinate Class Percentage: With respect to any Distribution Date and
any Class of Subordinate Certificates (exclusive of the Class B1X, Class B2X,
Class B3X, Class B4X, Class B5X, Class B7X, Class B10X and Class B11X
Certificates), the percentage obtained by dividing the Class Principal Amount of
such Class immediately prior to such Distribution Date by the aggregate
Certificate Principal Amount of all Subordinate Certificates immediately prior
to such Distribution Date.

        Subordinate Component Percentage: Not applicable.

        Subordinate Percentage: With respect to each Mortgage Pool and any
Distribution Date, the difference between 100% and the related Senior Percentage
for such Distribution Date.

        Subordinate Prepayment Percentage: With respect to each Mortgage Pool
and any Distribution Date, the difference between 100% and the related Senior
Prepayment Percentage for such Distribution Date.

        Subordinate Principal Distribution Amount: For each Mortgage Pool and
any Distribution Date, the sum of the following:

                (i)     the product of (a) the related Subordinate Percentage
        for such date and (b) the principal portion of each Scheduled Payment
        (without giving effect to any Debt Service Reduction occurring prior to
        the applicable Bankruptcy Coverage Termination Date) on each Mortgage
        Loan in the related Mortgage Pool due during the related Due Period;

                (ii)    the product of (a) the related Subordinate Prepayment
        Percentage for such date and (b) each of the following amounts: (1) each
        Principal Prepayment on the Mortgage Loans in the related Mortgage Pool
        collected during the related Prepayment Period, (2) each other
        unscheduled collection, including Subsequent Recoveries, Insurance
        Proceeds and Net Liquidation Proceeds (other than with respect to any
        Mortgage Loan in the related Mortgage Pool that was finally liquidated
        during the related Prepayment Period) representing or allocable to
        recoveries of principal received during the related Prepayment Period,
        and (3) the principal portion of all proceeds of the purchase of any
        Mortgage Loan in the related Mortgage Pool (or, in the case of a

                                       45
<PAGE>

        permitted substitution, amounts representing a principal adjustment)
        actually received by the Securities Administrator during the related
        Prepayment Period;

                (iii)   with respect to unscheduled recoveries allocable to
        principal of any Mortgage Loan in the related Mortgage Pool that was
        finally liquidated during the related Prepayment Period, the related net
        Liquidation Proceeds allocable to principal less any related amount paid
        pursuant to subsection (iii) of the definition of Senior Principal
        Distribution Amount for the related Certificate Group; and

                (iv)    any amounts described in clauses (i) through (iii) for
        any previous Distribution Date that remain unpaid.

        Subsequent Recovery: The amount, if any, recovered by the related
Servicer or the Master Servicer with respect to a Liquidated Mortgage Loan with
respect to which a Realized Loss has been incurred after liquidation and
disposition of such Mortgage Loan.

        Surety: Not applicable.

        Surety Bond: Not applicable.

        Tax Matters Person: The "tax matters person" as specified in the REMIC
Provisions.

        Title Insurance Policy: A title insurance policy maintained with respect
to a Mortgage Loan.

        Transfer Agreement: As defined in the Mortgage Loan Sale Agreement.

        Transferor: Each seller of Mortgage Loans to Lehman Brothers Holdings
pursuant to a Transfer Agreement.

        Trust Fund: The corpus of the trust created pursuant to this Agreement,
consisting of the Mortgage Loans (other than any Retained Interest), the
assignment of the Depositor's rights under the Mortgage Loan Sale Agreement and
the Participation Agreement, the Participations, the Additional Collateral, the
Cap Agreements and all amounts received from the Cap Provider thereunder, such
amounts as shall from time to time be held in the Cap Agreement Reserve Fund,
the Collection Account, the Certificate Account, any Escrow Account, the
Insurance Policies, any REO Property and the other items referred to in, and
conveyed to the Trustee under, Section 2.01(a).

        Trust Rate: Not applicable.

        Trust REMIC: Any of REMIC 1, REMIC 2 or REMIC 3.

        Trustee: HSBC Bank USA, National Association, a national banking
association, not in its individual capacity, but solely in its capacity as
trustee for the benefit of the Certificateholders under this Agreement, and any
successor thereto, and any corporation or national banking association resulting
from or surviving any consolidation or merger to which it or its successors

                                       46
<PAGE>

may be a party and any successor trustee as may from time to time be serving as
successor trustee hereunder.

        Trustee Fee: Not applicable.

        Trustee Fee Rate: Not applicable.

        Undercollateralization Distribution: As defined in Section
5.02(g)(ii)(A).

        Undercollateralized Group: With respect to any Distribution Date, the
Senior Certificates of any Certificate Group as to which the aggregate
Certificate Principal Amount thereof, after giving effect to distributions
pursuant to Sections 5.02(a) and (b) on such date, is greater than the Pool
Balance of the related Mortgage Pool for such Distribution Date.

        Underlying Subordinate Rate: For Mortgage Pool 1 for each Distribution
Date, will be the Pool 1 Net WAC; for Mortgage Pool 2 for each Distribution
Date, will be the Pool 2 Net WAC; for Mortgage Pool 3 for each Distribution
Date, will be the Pool 3 Net WAC; for Mortgage Pool 4 for each Distribution
Date, will be the Pool 4 Net WAC; for Mortgage Pool 5 for each Distribution
Date, will be the Pool 5 Net WAC; and for Mortgage Pool 6 for each Distribution
Date, will be the Pool 6 Net WAC.

        Underwriter's Exemption: Prohibited Transaction Exemption 91-14, 56 Fed.
Reg. 7413 (1991), as amended (or any successor thereto), or any substantially
similar administrative exemption granted by the U.S. Department of Labor.

        Unpaid Basis Risk Shortfall: Not applicable.

        Upper Tier REMIC: One of the separate REMICs as described in the
Preliminary Statement hereto.

        Voting Interests: The portion of the voting rights of all the
Certificates that is allocated to any Certificate for purposes of the voting
provisions of this Agreement. At all times during the term of this Agreement
until the Class Notional Amount of each Class of Notional Certificates has been
reduced to zero, 92% of all Voting Interests shall be allocated to the
Certificates other than the Notional Certificates and the Class P, Class Z and
Class CX Certificates, 5% of all Voting Interests shall be allocated to the
Notional Certificates, 1% shall be allocated to the Class P Certificates, 1%
shall be allocated to the Class Z Certificates and 1% shall be allocated to the
Class CX Certificates. After the Class Notional Amounts of all Classes of
Notional Certificates have been reduced to zero, 97% of all Voting Interests
shall be allocated to the remaining Classes of Certificates other than the Class
P, Class Z and Class CX Certificates. Voting Interests allocated to the Notional
Certificates shall be allocated among the Classes of such Certificates (and
among the Certificates of each such Class) in proportion to their Class Notional
Amounts (or Notional Amounts). Voting Interests shall be allocated among the
Class P, Class Z and Class CX Certificates in proportion to their Percentage
Interest. Voting Interests shall be allocated among the other Classes of
Certificates (and among the Certificates of each such Class) in proportion to
their Class Principal Amounts (or Certificate Principal Amounts).

        Section 1.02. Calculations Respecting Mortgage Loans.

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<PAGE>

        Calculations required to be made pursuant to this Agreement with respect
to any Mortgage Loan in the Trust Fund shall be made based upon current
information as to the terms of the Mortgage Loans and reports of payments
received from the Mortgagor on such Mortgage Loans and distributions to be made
to the Certificateholders as supplied to the Securities Administrator by the
Master Servicer. The Securities Administrator shall not be required to
recompute, verify or recalculate the information supplied to it by the Master
Servicer.

                                   ARTICLE II

                              DECLARATION OF TRUST;
                            ISSUANCE OF CERTIFICATES

        Section 2.01. Creation and Declaration of Trust Fund; Conveyance of
                      Mortgage Loans.

        (a)     Concurrently with the execution and delivery of this Agreement,
the Depositor does hereby transfer, assign, set over, deposit with and otherwise
convey to the Trustee, without recourse, subject to Sections 2.02, 2.04, 2.05
and 2.06, in trust, all the right, title and interest of the Depositor in and to
the Mortgage Loans (including the Participations). Such conveyance includes,
without limitation, the right to all distributions of principal and interest
received on or with respect to the Mortgage Loans on and after the Cut-off Date
(other than payments of principal and interest due on or before such date), and
all such payments due after such date but received prior to such date and
intended by the related Mortgagors to be applied after such date, together with
all of the Depositor's right, title and interest in and to the Collection
Account and all amounts from time to time credited to and the proceeds of the
Collection Account, the Certificate Account and all amounts from time to time
credited to and the proceeds of the Certificate Account, any Escrow Account
established pursuant to Section 9.06 hereof and all amounts from time to time
credited to and the proceeds of any such Escrow Account, any REO Property and
the proceeds thereof, the Depositor's rights under any Insurance Policies
related to the Mortgage Loans, and the Depositor's security interest in any
collateral pledged to secure the Mortgage Loans, including the Mortgaged
Properties and any Additional Collateral, and any proceeds of the foregoing, to
have and to hold, in trust; and the Trustee declares that, subject to the review
provided for in Section 2.02, it (or a Custodian on its behalf) has received and
shall hold the Trust Fund, as trustee, in trust, for the benefit and use of the
Holders of the Certificates and for the purposes and subject to the terms and
conditions set forth in this Agreement, and, concurrently with such receipt, has
caused to be executed, authenticated and delivered to or upon the order of the
Depositor, in exchange for the Trust Fund, Certificates in the authorized
denominations evidencing the entire ownership of the Trust Fund.

        Concurrently with the execution and delivery of this Agreement, the
Depositor does hereby assign to the Trustee all of its rights and interest under
the Mortgage Loan Sale Agreement; including all rights of the Seller under the
applicable Servicing Agreement to the extent assigned under the Mortgage Loan
Sale Agreement. The Trustee hereby accepts such assignment, and shall be
entitled to exercise all rights of the Depositor under the Mortgage Loan Sale
Agreement as if, for such purpose, it were the Depositor.

        It is agreed and understood by the Depositor and the Trustee (and the
Seller has so represented and recognized in the Mortgage Loan Sale Agreement)
that it is not intended that

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<PAGE>

any Mortgage Loan to be included in the Trust Fund be either (i) a "High-Cost
Home Loan" as defined in the New Jersey Home Ownership Act effective November
27, 2003 or (ii) a "High-Cost Home Loan" as defined in the New Mexico Home Loan
Protection Act effective January 1, 2004.

        The foregoing sale, transfer, assignment, set-over, deposit and
conveyance and the assignment and transfer with respect to Additional Collateral
does not and is not intended to result in creation or assumption by the Trustee
of any obligation of the Depositor, the Seller, or any other Person in
connection with the Mortgage Loans, the Servicing Agreements or any other
agreement or instrument relating thereto except as specifically set forth
herein. The Depositor hereby confirms its direction to the Trustee, solely in
its capacity as Trustee hereunder, to execute, deliver and perform its
obligations under the Cap Agreement on the Closing Date and thereafter on behalf
of the Holders of the Class B1, Class B2, Class B3, Class B4, Class B5, Class
B7, Class B10, Class B11 and Class CX Certificates. The Depositor, the Master
Servicer and the Holders of the Class B1, Class B2, Class B3, Class B4, Class
B5, Class B7, Class B10, Class B11 and Class CX Certificates by their acceptance
of their Certificates acknowledge that the Trustee shall execute, deliver and
perform its obligations under the Cap Agreement and shall do so solely in its
capacity as trustee and the Trustee shall have no duty or responsibility to
enter into any other interest rate cap agreement upon the expiration or
termination of the Cap Agreement.

        In addition, with respect to any Pledged Asset Mortgage Loan, the
Depositor does hereby transfer, assign, set-over and otherwise convey to the
Trustee without recourse (except as provided herein) (i) its rights as assignee
under any security agreements, pledge agreements or guarantees relating to the
Additional Collateral supporting any Pledged Asset Mortgage Loan, (ii) its
security interest in and to any Additional Collateral, (iii) its right to
receive payments in respect of any Pledged Asset Mortgage Loan pursuant to the
Additional Collateral Servicing Agreement, and (iv) its rights as beneficiary
under the surety bond in respect of any Pledged Asset Mortgage Loan.
Notwithstanding anything to the contrary in this Agreement, the Trust Fund shall
not obtain title to or beneficial ownership of any Additional Collateral as a
result of or in lieu of the disposition thereof or otherwise.

        (b)     In connection with such transfer and assignment, the Depositor
does hereby deliver to, and deposit with, or cause to be delivered to and
deposited with, the Trustee, and/or the Custodian acting on the Trustee's
behalf, the following documents or instruments with respect to each Mortgage
Loan (each a "Mortgage File") so transferred and assigned (other than the
Participations):

                (i)     with respect to each Mortgage Loan, the original
        Mortgage Note endorsed without recourse in proper form to the order of
        the Trustee, or in blank (in each case, with all necessary intervening
        endorsements as applicable);

                (ii)    the original of any guarantee, security agreement or
        pledge agreement relating to any Additional Collateral and executed in
        connection with the Mortgage Note, assigned to the Trustee;

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<PAGE>

                (iii)   with respect to each Mortgage Loan other than a
        Cooperative Loan, the original recorded Mortgage with evidence of
        recording indicated thereon and the original recorded power of attorney,
        if the Mortgage was executed pursuant to a power of attorney, with
        evidence of recording thereon or, if such Mortgage or power of attorney
        has been submitted for recording but has not been returned from the
        applicable public recording office, has been lost or is not otherwise
        available, a copy of such Mortgage or power of attorney, as the case may
        be, certified to be a true and complete copy of the original submitted
        for recording. If, in connection with any Mortgage Loan, the Depositor
        cannot deliver the Mortgage with evidence of recording thereon on or
        prior to the Closing Date because of a delay caused by the public
        recording office where such Mortgage has been delivered for recordation
        or because such Mortgage has been lost, the Depositor shall deliver or
        cause to be delivered to the Trustee (or its custodian), in the case of
        a delay due to recording, a true copy of such Mortgage, pending delivery
        of the original thereof, together with an Officer's Certificate of the
        Depositor certifying that the copy of such Mortgage delivered to the
        Trustee (or its custodian) is a true copy and that the original of such
        Mortgage has been forwarded to the public recording office, or, in the
        case of a Mortgage that has been lost, a copy thereof (certified as
        provided for under the laws of the appropriate jurisdiction) and a
        written Opinion of Counsel acceptable to the Trustee and the Depositor
        that an original recorded Mortgage is not required to enforce the
        Trustee's interest in the Mortgage Loan;

                (iv)    the original of each assumption, modification or
        substitution agreement, if any, relating to the Mortgage Loans, or, as
        to any assumption, modification or substitution agreement which cannot
        be delivered on or prior to the Closing Date because of a delay caused
        by the public recording office where such assumption, modification or
        substitution agreement has been delivered for recordation, a photocopy
        of such assumption, modification or substitution agreement, pending
        delivery of the original thereof, together with an Officer's Certificate
        of the Depositor certifying that the copy of such assumption,
        modification or substitution agreement delivered to the Trustee (or its
        custodian) is a true copy and that the original of such agreement has
        been forwarded to the public recording office;

                (v)     with respect to each Non-MERS Mortgage Loan other than a
        Cooperative Loan, the original Assignment of Mortgage, in form and
        substance acceptable for recording. The Mortgage shall be assigned
        either (A) in blank, without recourse or (B) to "HSBC Bank USA, National
        Association, as Trustee of the Structured Adjustable Rate Mortgage Loan
        Trust Mortgage Pass Through Certificates, Series 2005-1," without
        recourse for each Mortgage Loan;

                (vi)    if applicable, such original intervening assignments of
        the Mortgage, notice of transfer or equivalent instrument (each, an
        "Intervening Assignment"), as may be necessary to show a complete chain
        of assignment from the originator, or, in the case of an Intervening
        Assignment that has been lost, a written Opinion of Counsel acceptable
        to the Trustee that such original Intervening Assignment is not required
        to enforce the Trustee's interest in the Mortgage Loans;

                                       50
<PAGE>

                (vii)   the original Primary Mortgage Insurance Policy or
        certificate, if private mortgage guaranty insurance is required;

                (viii)  with respect to each Mortgage Loan other than a
        Cooperative Loan, the original mortgagee title insurance policy or
        attorney's opinion of title and abstract of title;

                (ix)    the original of any security agreement, chattel mortgage
        or equivalent executed in connection with the Mortgage or as to any
        security agreement, chattel mortgage or their equivalent that cannot be
        delivered on or prior to the Closing Date because of a delay caused by
        the public recording office where such document has been delivered for
        recordation, a photocopy of such document, pending delivery of the
        original thereof, together with an Officer's Certificate of the
        Depositor certifying that the copy of such security agreement, chattel
        mortgage or their equivalent delivered to the Trustee (or its custodian)
        is a true copy and that the original of such document has been forwarded
        to the public recording office; and

                (x)     with respect to any Cooperative Loan, the Cooperative
        Loan Documents.

        The parties hereto acknowledge and agree that the form of endorsement
attached hereto as Exhibit B-4 is intended to effect the transfer to the
Trustee, for the benefit of the Certificateholders, of the Mortgage Notes and
the Mortgages.

        With respect to each Participation, the Depositor does hereby deliver
to, and deposit with, or cause to be delivered to and deposited with, the
Trustee, and/or any custodian acting on the Trustee's behalf, a copy of the
Participation Agreement and the original Participation issued to the Trustee.

                (c)     (i)     Assignments of Mortgage with respect to each
        Non-MERS Mortgage Loan other than a Cooperative Loan shall be recorded;
        provided, however, that such Assignments need not be recorded if, in the
        Opinion of Counsel (which must be from Independent counsel) acceptable
        to the Trustee and the Rating Agencies, recording in such states is not
        required to protect the Trustee's interest in the related Non-MERS
        Mortgage Loans. Subject to the preceding sentence, as soon as
        practicable after the Closing Date (but in no event more than 3 months
        thereafter except to the extent delays are caused by the applicable
        recording office), the Master Servicer (or its Custodian), at the
        expense of the Depositor and with the cooperation of the applicable
        Servicer, shall cause to be properly recorded by such Servicer in each
        public recording office where the related Mortgages are recorded each
        Assignment of Mortgage referred to in subsection (b)(v) above with
        respect to a Non-MERS Mortgage Loan. With respect to each Cooperative
        Loan, the Master Servicer (or its Custodian), at the expense of the
        Depositor and with the cooperation of the applicable Servicer, shall
        cause such Servicer to take such actions as are necessary under
        applicable law in order to perfect the interest of the Trustee in the
        related Mortgaged Property.

                (ii)    With respect to each MERS Mortgage Loan, the Master
        Servicer (or its applicable Custodian), at the expense of the Depositor
        and with the cooperation of the applicable Servicer, shall cause to be
        taken such actions by such Servicer as are necessary

                                       51
<PAGE>

        to cause the Trustee to be clearly identified as the owner of each such
        Mortgage Loan on the records of MERS for purposes of the system of
        recording transfers of beneficial ownership of mortgages maintained by
        MERS.

        (d)     In instances where a Title Insurance Policy is required to be
delivered to the Trustee, or to the applicable Custodian on behalf of the
Trustee, under clause (b)(viii) above and is not so delivered, the Depositor
will provide a copy of such Title Insurance Policy to the Trustee, or to the
applicable Custodian on behalf of the Trustee, as promptly as practicable after
the execution and delivery hereof, but in any case within 180 days of the
Closing Date.

        (e)     For Mortgage Loans (if any) that have been prepaid in full after
the Cut-off Date and prior to the Closing Date, the Depositor, in lieu of
delivering the above documents, herewith delivers to the Trustee, or to the
applicable Custodian on behalf of the Trustee, an Officer's Certificate which
shall include a statement to the effect that all amounts received in connection
with such prepayment that are required to be deposited in the applicable
Collection Account pursuant to Section 4.01 have been so deposited. All original
documents that are not delivered to the Trustee or the applicable Custodian on
behalf of the Trustee shall be held by the Master Servicer or the applicable
Servicer in trust for the benefit of the Trustee and the Certificateholders.

        Section 2.02. Acceptance of Trust Fund by Trustee: Review of
                      Documentation for Trust Fund.

        (a)     The Trustee or the applicable Custodian on behalf of the
Trustee, by execution and delivery hereof, acknowledges receipt of the
Participations and the Mortgage Files pertaining to the Mortgage Loans listed on
the Mortgage Loan Schedule, subject to review thereof by the Trustee, or by the
applicable Custodian on behalf of the Trustee, under this Section 2.02. The
Trustee, or the applicable Custodian on behalf of the Trustee, will execute and
deliver to the Trustee, the Depositor and the Master Servicer on the Closing
Date an Initial Certification in the form annexed hereto as Exhibit B-1 (or in
the form annexed to the applicable Custodial Agreement as Exhibit B-1, as
applicable).

        (b)     Within 45 days after the Closing Date, the applicable Custodian
will, on behalf of the Trustee and for the benefit of Holders of the
Certificates, review each Mortgage File to ascertain that all required documents
set forth in Section 2.01 have been received and appear on their face to contain
the requisite signatures by or on behalf of the respective parties thereto, and
shall deliver to the Trustee, the Depositor and the Master Servicer an Interim
Certification in the form annexed hereto as Exhibit B-2 (or in the form annexed
to the applicable Custodial Agreement as Exhibit B-2, as applicable) to the
effect that, as to each Mortgage Loan listed in the Mortgage Loan Schedule
(other than any Mortgage Loan prepaid in full or any Mortgage Loan specifically
identified in such certification as not covered by such certification), (i) all
of the applicable documents specified in Section 2.01(b) are in its possession
and (ii) such documents have been reviewed by it and appear to relate to such
Mortgage Loan. The Trustee, or the applicable Custodian on behalf of the
Trustee, shall make sure that the documents are executed and endorsed, but shall
be under no duty or obligation to inspect, review or examine any such documents,
instruments, certificates or other papers to determine that the same are valid,
binding, legally effective, properly endorsed, genuine, enforceable or
appropriate for the

                                       52
<PAGE>

represented purpose or that they have actually been recorded or are in
recordable form or that they are other than what they purport to be on their
face. Neither the Trustee nor any Custodian shall have any responsibility for
verifying the genuineness or the legal effectiveness of or authority for any
signatures of or on behalf of any party or endorser.

        (c)     If in the course of the review described in paragraph (b) above
the Trustee or the applicable Custodian discovers any document or documents
constituting a part of a Mortgage File that is missing, does not appear regular
on its face (i.e., is mutilated, damaged, defaced, torn or otherwise physically
altered) or appears to be unrelated to the Mortgage Loans identified in the
Mortgage Loan Schedule (each, a "Material Defect"), the Trustee, or the
applicable Custodian on behalf of the Trustee, shall promptly identify the
Mortgage Loan to which such Material Defect relates in the Interim Certificate
delivered to the Depositor or the Master Servicer (and to the Trustee). Within
90 days of its receipt of such notice, the Depositor shall be required to cure
such Material Defect (and, in such event, the Depositor shall provide the
Trustee with an Officer's Certificate confirming that such cure has been
effected). If the Depositor does not so cure such Material Defect, it shall, if
a loss has been incurred with respect to such Mortgage Loan that would, if such
Mortgage Loan were not purchased from the Trust Fund, constitute a Realized
Loss, and such loss is attributable to the failure of the Depositor to cure such
Material Defect, repurchase the related Mortgage Loan from the Trust Fund at the
Purchase Price. A loss shall be deemed to be attributable to the failure of the
Depositor to cure a Material Defect if, as determined by the Depositor, upon
mutual agreement with the Servicer acting in good faith, absent such Material
Defect, such loss would not have been incurred. Within the two-year period
following the Closing Date, the Depositor may, in lieu of repurchasing a
Mortgage Loan pursuant to this Section 2.02, substitute for such Mortgage Loan a
Qualifying Substitute Mortgage Loan subject to the provisions of Section 2.05.
The failure of the Trustee or the applicable Custodian to give the notice
contemplated herein within 45 days after the Closing Date shall not affect or
relieve the Depositor of its obligation to repurchase any Mortgage Loan pursuant
to this Section 2.02 or any other Section of this Agreement requiring the
repurchase of Mortgage Loans from the Trust Fund.

        (d)     Within 180 days following the Closing Date, the Trustee, or the
applicable Custodian, shall deliver to the Trustee, the Depositor and the Master
Servicer a Final Certification substantially in the form annexed hereto as
Exhibit B-3 (or in the form annexed to the applicable Custodial Agreement as
Exhibit B-3, as applicable) evidencing the completeness of the Mortgage Files in
its possession or control, with any exceptions noted thereto.

        (e)     Nothing in this Agreement shall be construed to constitute an
assumption by the Trust Fund, the Trustee or the Certificateholders of any
unsatisfied duty, claim or other liability on any Mortgage Loan or to any
Mortgagor.

        (f)     Each of the parties hereto acknowledges that the applicable
Custodian shall hold the related Mortgage Files and shall perform the applicable
review of the Mortgage Loans and deliver the respective certifications thereof
as provided in this Section 2.02 and the related Custodial Agreement.

        Section 2.03. Representations and Warranties of the Depositor.

                                       53
<PAGE>

        (a)     The Depositor hereby represents and warrants to the Trustee, for
the benefit of Certificateholders, the Master Servicer and the Securities
Administrator, as of the Closing Date or such other date as is specified, that:

                (i)     the Depositor is a corporation duly organized, validly
        existing and in good standing under the laws governing its creation and
        existence and has full corporate power and authority to own its
        property, to carry on its business as presently conducted, to enter into
        and perform its obligations under this Agreement, and to create the
        trust pursuant hereto;

                (ii)    the execution and delivery by the Depositor of this
        Agreement have been duly authorized by all necessary corporate action on
        the part of the Depositor; neither the execution and delivery of this
        Agreement, nor the consummation of the transactions herein contemplated,
        nor compliance with the provisions hereof, will conflict with or result
        in a breach of, or constitute a default under, any of the provisions of
        any law, governmental rule, regulation, judgment, decree or order
        binding on the Depositor or its properties or the certificate of
        incorporation or bylaws of the Depositor;

                (iii)   the execution, delivery and performance by the Depositor
        of this Agreement and the consummation of the transactions contemplated
        hereby do not require the consent or approval of, the giving of notice
        to, the registration with, or the taking of any other action in respect
        of, any state, federal or other governmental authority or agency, except
        such as has been obtained, given, effected or taken prior to the date
        hereof;

                (iv)    this Agreement has been duly executed and delivered by
        the Depositor and, assuming due authorization, execution and delivery by
        the Trustee, the Securities Administrator and the Master Servicer,
        constitutes a valid and binding obligation of the Depositor enforceable
        against it in accordance with its terms except as such enforceability
        may be subject to (A) applicable bankruptcy and insolvency laws and
        other similar laws affecting the enforcement of the rights of creditors
        generally and (B) general principles of equity regardless of whether
        such enforcement is considered in a proceeding in equity or at law;

                (v)     there are no actions, suits or proceedings pending or,
        to the knowledge of the Depositor, threatened or likely to be asserted
        against or affecting the Depositor, before or by any court,
        administrative agency, arbitrator or governmental body (A) with respect
        to any of the transactions contemplated by this Agreement or (B) with
        respect to any other matter which in the judgment of the Depositor will
        be determined adversely to the Depositor and will if determined
        adversely to the Depositor materially and adversely affect it or its
        business, assets, operations or condition, financial or otherwise, or
        adversely affect its ability to perform its obligations under this
        Agreement; and

                (vi)    immediately prior to the transfer and assignment of the
        Mortgage Loans to the Trustee, the Depositor was the sole owner of
        record and holder of each Mortgage Loan, and the Depositor had good and
        marketable title thereto, and had full right to transfer and sell each
        Mortgage Loan to the Trustee free and clear, subject only to (1)

                                       54
<page>

        liens of current real property taxes and assessments not yet due and
        payable and, if the related Mortgaged Property is a condominium unit,
        any lien for common charges permitted by statute, (2) covenants,
        conditions and restrictions, rights of way, easements and other matters
        of public record as of the date of recording of such Mortgage acceptable
        to mortgage lending institutions in the area in which the related
        Mortgaged Property is located and specifically referred to in the
        lender's Title Insurance Policy or attorney's opinion of title and
        abstract of title delivered to the originator of such Mortgage Loan, and
        (3) such other matters to which like properties are commonly subject
        which do not, individually or in the aggregate, materially interfere
        with the benefits of the security intended to be provided by the
        Mortgage, of any encumbrance, equity, participation interest, lien,
        pledge, charge, claim or security interest, and had full right and
        authority, subject to no interest or participation of, or agreement
        with, any other party, to sell and assign each Mortgage Loan pursuant to
        this Agreement.

        (b)     The representations and warranties of each Transferor with
respect to the related Mortgage Loans in the applicable Transfer Agreement,
which have been assigned to the Trustee hereunder, were made as of the date
specified in the applicable Transfer Agreement (or underlying agreement, if such
Transfer Agreement is in the form of an assignment of a prior agreement). To the
extent that any fact, condition or event with respect to a Mortgage Loan
constitutes a breach of both (i) a representation or warranty of the applicable
Transferor under the applicable Transfer Agreement and (ii) a representation or
warranty of Lehman Brothers Holdings under the Mortgage Loan Sale Agreement, the
only right or remedy of the Trustee or of any Certificateholder shall be the
Trustee's right to enforce the obligations of the applicable Transferor under
any applicable representation or warranty made by it. The Trustee acknowledges
that Lehman Brothers Holdings shall have no obligation or liability with respect
to any breach of a representation or warranty made by it with respect to the
Mortgage Loans if the fact, condition or event constituting such breach also
constitutes a breach of a representation or warranty made by the applicable
Transferor in the applicable Transfer Agreement, without regard to whether such
Transferor fulfills its contractual obligations in respect of such
representation or warranty. The Trustee further acknowledges that the Depositor
shall have no obligation or liability with respect to any breach of any
representation or warranty with respect to the Mortgage Loans (except as set
forth in Section 2.03(a)(vi)) under any circumstances.

        Section 2.04. Discovery of Breach.

        It is understood and agreed that the representations and warranties (i)
set forth in Section 2.03, (ii) of Lehman Brothers Holdings set forth in the
Mortgage Loan Sale Agreement and assigned to the Trustee by the Depositor
hereunder and (iii) of each Transferor, assigned by Lehman Brothers Holdings to
the Depositor pursuant to the Mortgage Loan Sale Agreement and assigned to the
Trustee by the Depositor hereunder shall each survive delivery of the Mortgage
Files and the Assignment of Mortgage of each Mortgage Loan to the Trustee and
shall continue throughout the term of this Agreement. Upon discovery by either
the Depositor, the Master Servicer or the Trustee of a breach of any of such
representations and warranties that adversely and materially affects the value
of the related Mortgage Loan, the party discovering such breach shall give
prompt written notice to the other parties. Within 90 days of the discovery of a
breach of any representation or warranty given or assigned to the Trustee by the
Depositor, any Transferor, or Lehman Brothers Holdings, the Depositor, such
Transferor, or Lehman Brothers

                                       55
<page>

Holdings, as applicable, shall either (a) cure such breach in all material
respects, (b) repurchase such Mortgage Loan or any property acquired in respect
thereof from the Trustee at the Purchase Price or (c) within the two year period
following the Closing Date, substitute a Qualifying Substitute Mortgage Loan for
the affected Mortgage Loan. In the event of discovery of a breach of any
representation and warranty of any Transferor assigned to the Trustee, the
Trustee shall enforce its rights under the applicable Transfer Agreement and the
Mortgage Loan Sale Agreement for the benefit of Certificateholders. As provided
in the Mortgage Loan Sale Agreement, if any Transferor substitutes for a
Mortgage Loan for which there is a breach of any representations and warranties
in the related Transfer Agreement which adversely and materially affects the
value of such Mortgage Loan and such substitute mortgage loan is not a
Qualifying Substitute Mortgage Loan, under the terms of the Mortgage Loan Sale
Agreement, Lehman Brothers Holdings will, in exchange for such substitute
Mortgage Loan, (i) provide the applicable Purchase Price for the affected
Mortgage Loan or (ii) within two years of the Closing Date, substitute such
affected Mortgage Loan with a Qualifying Substitute Mortgage Loan.

        Section 2.05. Repurchase, Purchase or Substitution of Mortgage Loans.

        (a)     With respect to any Mortgage Loan repurchased by the Depositor
pursuant to this Agreement, by Lehman Brothers Holdings pursuant to the
applicable Mortgage Loan Sale Agreement or by any Transferor pursuant to the
applicable Transfer Agreement, the principal portion of the funds received by
the Master Servicer in respect of such repurchase of a Mortgage Loan will be
considered a Principal Prepayment and shall be deposited in the Collection
Account pursuant to Section 4.01. The Trustee, upon receipt of the full amount
of the Purchase Price for a Deleted Mortgage Loan, or upon receipt of
notification from the related Custodian that it received the Mortgage File for a
Qualifying Substitute Mortgage Loan substituted for a Deleted Mortgage Loan (and
any applicable Substitution Amount), shall release or cause to be released to
the Depositor, Lehman Brothers Holdings or the applicable Transferor, as
applicable, the related Mortgage File for the Deleted Mortgage Loan and shall
execute and deliver such instruments of transfer or assignment, in each case
without recourse, representation or warranty, as shall be necessary to vest in
such party or its designee or assignee title to any Deleted Mortgage Loan
released pursuant hereto, free and clear of all security interests, liens and
other encumbrances created by this Agreement, which instruments shall be
prepared by the Trustee (or a Custodian), and the Trustee shall have no further
responsibility with respect to the Mortgage File relating to such Deleted
Mortgage Loan.

        (b)     With respect to each Qualifying Substitute Mortgage Loan to be
delivered to the Trustee (or a Custodian) pursuant to the terms of this Article
II in exchange for a Deleted Mortgage Loan: (i) the Depositor, the applicable
Transferor, or Lehman Brothers Holdings, as applicable, must deliver to the
Trustee (or its custodian) the Mortgage File for the Qualifying Substitute
Mortgage Loan containing the documents set forth in Section 2.01(b) along with a
written certification certifying as to the delivery of such Mortgage File and
containing the granting language set forth in Section 2.01(a); and (ii) the
Depositor will be deemed to have made, with respect to such Qualified Substitute
Mortgage Loan, each of the representations and warranties made by it with
respect to the related Deleted Mortgage Loan. As soon as practicable after the
delivery of any Qualifying Substitute Mortgage Loan hereunder, the Master
Servicer, at the expense of the Depositor and at the direction and with the
cooperation of the applicable Servicer, shall (i) with respect to a Qualifying
Substitute Mortgage Loan that is a Non-MERS

                                       56
<page>

Mortgage Loan, cause the Assignment of Mortgage to be recorded by such Servicer
if required pursuant to Section 2.01(c)(i), or (ii) with respect to a Qualifying
Substitute Mortgage Loan that is a MERS Mortgage Loan, cause to be taken such
actions by such Servicer as are necessary to cause the Trustee to be clearly
identified as the owner of each such Mortgage Loan on the records of MERS if
required pursuant to Section 2.01(c)(ii).

        (c)     Notwithstanding any other provision of this Agreement, the right
to substitute Mortgage Loans pursuant to this Article II shall be subject to the
additional limitations that no substitution of a Qualifying Substitute Mortgage
Loan for a Deleted Mortgage Loan shall be made unless the Trustee has received
an Opinion of Counsel (at the expense of the party seeking to make the
substitution) that, under current law, such substitution will not (A) affect
adversely the status of any REMIC established hereunder as a REMIC, or of the
related "regular interests" as "regular interests" in any such REMIC, or (B)
cause any such REMIC to engage in a "prohibited transaction" or prohibited
contribution pursuant to the REMIC Provisions. The Depositor shall cause the
Mortgage Loan Schedule to be amended in accordance with the terms of this
Agreement.

        Section 2.06. Grant Clause.

        It is intended that the conveyance of the Depositor's right, title and
interest in and to property constituting the Trust Fund pursuant to this
Agreement shall constitute, and shall be construed as, a sale of such property
and not a grant of a security interest to secure a loan. However, if such
conveyance is deemed to be in respect of a loan, it is intended that: (i) the
rights and obligations of the parties shall be established pursuant to the terms
of this Agreement; (ii) the Depositor hereby grants to the Trustee for the
benefit of the Holders of the Certificates a first priority security interest in
all of the Depositor's right, title and interest in, to and under, whether now
owned or hereafter acquired, the Trust Fund and all proceeds of any and all
property constituting the Trust Fund to secure payment of the Certificates; and
(iii) this Agreement shall constitute a security agreement under applicable law.
If such conveyance is deemed to be in respect of a loan and the Trust created by
this Agreement terminates prior to the satisfaction of the claims of any Person
holding any Certificate, the security interest created hereby shall continue in
full force and effect and the Trustee shall be deemed to be the collateral agent
for the benefit of such Person, and all proceeds shall be distributed as herein
provided.

                                  ARTICLE III

                                THE CERTIFICATES

        Section 3.01. The Certificates.

        (a)     The Certificates shall be issuable in registered form only and
shall be securities governed by Article 8 of the New York Uniform Commercial
Code. The Book-Entry Certificates will be evidenced by one or more certificates,
beneficial ownership of which will be held in the dollar denominations in
Certificate Principal Amount or Notional Principal Amount, as applicable, or in
the Percentage Interests, specified herein. Each Class of Book-Entry
Certificates shall be issued in the minimum denominations in Certificate
Principal Amount (or Notional Amount) or Percentage Interest specified in the
Preliminary Statement hereto and in

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integral multiples of $1 or 5% (in the case of Certificates issued in Percentage
Interests) in excess thereof. Each Class of Non-Book Entry Certificates other
than the Residual Certificate shall be issued in definitive, fully registered
form in the minimum denominations in Certificate Principal Amount (or Notional
Amount) specified in the Preliminary Statement hereto and in integral multiples
of $1 in excess thereof. The Residual Certificate shall be issued as a single
Certificate and maintained in definitive, fully registered form in a minimum
denomination equal to $100. The Class P Certificates shall be maintained in
definitive, fully registered form in a minimum denomination equal to 25% of the
Percentage Interest of such Class of Certificates. The Class Z Certificates
shall be maintained in definitive, fully registered form in a minimum
denomination equal to 100% of the Percentage Interest of such Class of
Certificates. The Certificates may be issued in the form of typewritten
certificates. One Certificate of each Class of Certificates other than any Class
of Residual Certificates may be issued in any denomination in excess of the
minimum denomination.

        (b)     The Certificates shall be executed by manual or facsimile
signature on behalf of the Authenticating Agent by an authorized officer of the
Trustee or the Authenticating Agent. Each Certificate shall, on original issue,
be authenticated by the Authenticating Agent upon the order of the Depositor
upon receipt by the Trustee of the Mortgage Files described in Section 2.01. No
Certificate shall be entitled to any benefit under this Agreement, or be valid
for any purpose, unless there appears on such Certificate a certificate of
authentication substantially in the form provided for herein, executed by an
authorized officer of the Trustee or the Authenticating Agent, if any, by manual
signature, and such certification upon any Certificate shall be conclusive
evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder. All Certificates shall be dated the date
of their authentication. At any time and from time to time after the execution
and delivery of this Agreement, the Depositor may deliver Certificates executed
by the Depositor to the Trustee or the Authenticating Agent for authentication
and the Trustee or the Authenticating Agent shall authenticate and deliver such
Certificates as in this Agreement provided and not otherwise.

        (c) The Class B11, Class B11X, Class B12 or Class B13 Certificates
offered and sold in reliance on the exemption from registration under Rule 144A
shall be issued initially in the form of one or more permanent global
Certificates in definitive, fully registered form without interest coupons with
the applicable legends set forth in Exhibit A added to the forms of such
Certificates (each, a "Restricted Global Security"), which shall be deposited on
behalf of the subscribers for such Certificates represented thereby with the
Securities Administrator, as custodian for DTC and registered in the name of a
nominee of DTC, duly executed and authenticated by the Trustee as hereinafter
provided. The aggregate principal amounts of the Restricted Global Securities
may from time to time be increased or decreased by adjustments made on the
records of the Trustee or DTC or its nominee, as the case may be, as hereinafter
provided.

        The Class B11, Class B11X, Class B12 or Class B13 Certificates sold in
offshore transactions in reliance on Regulation S shall be issued initially in
the form of one or more permanent global Certificates in definitive, fully
registered form without interest coupons with the applicable legends set forth
in Exhibit A hereto added to the forms of such Certificates (each, a "Regulation
S Global Security"), which shall be deposited on behalf of the subscribers for
such Certificates represented thereby with the Securities Administrator, as
custodian for DTC and registered in the name of a nominee of DTC, duly executed
and authenticated by the Trustee as hereinafter

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<page>

provided. The aggregate principal amounts of the Regulation S Global Securities
may from time to time be increased or decreased by adjustments made on the
records of the Securities Administrator or DTC or its nominee, as the case may
be, as hereinafter provided.

        (d) The Class B11, Class B11X, Class B12 or Class B13 Certificates sold
to an "accredited investor" complying with the transfer provision set forth in
Section 3.03 under Rule 501(a)(1), (2), (3) or (7) under the Act shall be issued
initially in the form of one or more Definitive Certificates.

        Section 3.02.  Registration.

        The Securities Administrator is hereby appointed, and hereby accepts its
appointment as, the initial Certificate Registrar in respect of the Certificates
and shall maintain books for the registration and for the transfer of
Certificates (the "Certificate Register"). A registration book shall be
maintained for the Certificates collectively. The Certificate Registrar may
resign or be discharged or removed and a new successor may be appointed in
accordance with the procedures and requirements set forth in Sections 6.06 and
6.07 hereof with respect to the resignation, discharge or removal of the Trustee
and the appointment of a successor trustee. The Certificate Registrar may
appoint, by a written instrument delivered to the Holders and the Master
Servicer, any bank or trust company to act as co-registrar under such conditions
as the Certificate Registrar may prescribe; provided, however, that the
Certificate Registrar shall not be relieved of any of its duties or
responsibilities hereunder by reason of such appointment.

        Section 3.03.  Transfer and Exchange of Certificates.

        (a)     A Certificate (other than Book-Entry Certificates which shall be
subject to Section 3.09 hereof) may be transferred by the Holder thereof only
upon presentation and surrender of such Certificate at the office of the
Certificate Registrar duly endorsed or accompanied by an assignment duly
executed by such Holder or his duly authorized attorney in such form as shall be
satisfactory to the Certificate Registrar. Upon the transfer of any Certificate
in accordance with the preceding sentence, the Trustee shall execute, and the
Trustee or any Authenticating Agent shall authenticate and deliver to the
transferee, one or more new Certificates of the same Class and evidencing, in
the aggregate, the same aggregate Certificate Principal Amount as the
Certificate being transferred. No service charge shall be made to a
Certificateholder for any registration of transfer of Certificates, but the
Certificate Registrar may require payment of a sum sufficient to cover any tax
or governmental charge that may be imposed in connection with any registration
of transfer of Certificates.

        (b)     A Certificate may be exchanged by the Holder thereof for any
number of new Certificates of the same Class, in authorized denominations,
representing in the aggregate the same Certificate Principal Amount as the
Certificate surrendered, upon surrender of the Certificate to be exchanged at
the office of the Certificate Registrar duly endorsed or accompanied by a
written instrument of transfer duly executed by such Holder or his duly
authorized attorney in such form as is satisfactory to the Certificate
Registrar. Certificates delivered upon any such exchange will evidence the same
obligations, and will be entitled to the same rights and privileges, as the
Certificates surrendered. No service charge shall be made to a Certificateholder
for any exchange of Certificates, but the Certificate Registrar may require

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payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any exchange of Certificates. Whenever any
Certificates are so surrendered for exchange, the Trustee shall execute, and the
Trustee or the Authenticating Agent shall authenticate, date and deliver the
Certificates which the Certificateholder making the exchange is entitled to
receive.

        (c)     By acceptance of a Restricted Certificate or a Regulation S
Global Security, whether upon original issuance or subsequent transfer, each
Holder of such a Certificate acknowledges the restrictions on the transfer of
such Certificate set forth thereon and agrees that it will transfer such a
Certificate only as provided herein. In addition, each Holder of a Regulation S
Global Security shall be deemed to have represented and warranted to the
Trustee, the Certificate Registrar and any of their respective successors that:
(i) such Person is not a U.S. person within the meaning of Regulation S and was,
at the time the buy order was originated, outside the United States and (ii)
such Person understands that such Certificates have not been registered under
the Securities Act of 1933, as amended (the "Act"), and that (x) until the
expiration of the 40-day distribution compliance period (within the meaning of
Regulation S), no offer, sale, pledge or other transfer of such Certificates or
any interest therein shall be made in the United States or to or for the account
or benefit of a U.S. person (each as defined in Regulation S), (y) if in the
future it decides to offer, resell, pledge or otherwise transfer such
Certificates, such Certificates may be offered, resold, pledged or otherwise
transferred only (A) to a person which the seller reasonably believes is a
"qualified institutional buyer" (a "QIB") as defined in Rule 144A under the Act,
that is purchasing such Certificates for its own account or for the account of a
qualified institutional buyer to which notice is given that the transfer is
being made in reliance on Rule 144A or (B) in an offshore transaction (as
defined in Regulation S) in compliance with the provisions of Regulation S, in
each case in compliance with the requirements of this Agreement; and it will
notify such transferee of the transfer restrictions specified in this Section.

        The following restrictions shall apply with respect to the transfer and
registration of transfer of a Restricted Certificate to a transferee that takes
delivery in the form of a Definitive Certificate:

                (i)     The Certificate Registrar shall register the transfer of
        a Restricted Certificate if the requested transfer is (x) to the
        Depositor or the Placement Agent, an affiliate (as defined in Rule 405
        under the Act) of the Depositor or the Placement Agent or (y) being made
        to a QIB by a transferor that has provided the Certificate Registrar
        with a certificate in the form of Exhibit F hereto; and

                (ii)    The Certificate Registrar shall register the transfer of
        a Restricted Certificate if the requested transfer is being made to an
        "accredited investor" under Rule 501(a)(1), (2), (3) or (7) under the
        Act by a transferor who furnishes to the Certificate Registrar a letter
        of the transferee substantially in the form of Exhibit G hereto.

        (d)     No Transfer of an ERISA-Restricted Certificate that is a Class R
Certificate will be registered unless the Trustee, the Certificate Registrar and
the Depositor receive a representation as set forth in Exhibit D-1 to the effect
that such transferee is not an employee benefit plan or arrangement subject to
Title I of ERISA, a plan subject to Section 4975 of the

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<page>

Code or a plan subject to any provisions under any federal, state, local,
non-U.S. or other laws or regulations that are substantively similar to the
foregoing provisions of ERISA or the Code ("Similar Law") (collectively, a
"Plan"), and is not directly or indirectly acquiring the Class R Certificate
for, on behalf of, or with any assets of any such Plan. Each Person to whom a
Class R Certificate is to be transferred shall be required or deemed to
represent that it is not a Plan.

        No Transfer of an ERISA-Restricted Certificate (other than the Class R
Certificate) will be registered unless the Trustee, the Certificate Registrar
and the Depositor receive (A) a representation as set forth in Exhibit H that
the transferee is not a Plan and is not directly or indirectly acquiring the
Certificate for, on behalf of, or with any assets of any such Plan, (B) if the
Certificate has been the subject of an ERISA-Qualifying Underwriting, a
representation as set forth in Exhibit H that such transferee is an insurance
company that is acquiring the Certificate with assets contained in an "insurance
company general account," as defined in Section V(e) of Prohibited Transaction
Class Exemption ("PTCE") 95-60, and the acquisition and holding of the
Certificate are covered and exempt under Sections I and III of PTCE 95-60, or
(C) solely in the case of a Definitive Certificate, an Opinion of Counsel
satisfactory to the Trustee, the Certificate Registrar and the Depositor, and
upon which the Trustee, the Certificate Registrar and the Depositor shall be
entitled to rely, to the effect that the acquisition and holding of such
Certificate will not constitute or result in a nonexempt prohibited transaction
under ERISA or the Code, or a violation of Similar Law, and will not subject the
Trustee, the Certificate Registrar, the Master Servicer or the Depositor to any
obligation in addition to those expressly undertaken in this Agreement, which
Opinion of Counsel shall not be an expense of the Trustee, the Certificate
Registrar, the Master Servicer or the Depositor.

        For purposes of this Subsection 3.03(d), other than clause (C) in the
immediately preceding paragraph, the representations set forth in Exhibit D-1 or
Exhibit H, as applicable, shall be deemed to have been made to the Trustee, the
Certificate Registrar and the Depositor by the transferee's acceptance of an
ERISA- Restricted Certificate (or the acceptance by a Certificate Owner of the
beneficial interest in any Class of ERISA-Restricted Certificates). The Trustee,
the Certificate Registrar and the Depositor shall not have any obligation to
monitor transfers of Book-Entry Certificates or Restricted Global Securities
that are ERISA-Restricted Certificates or any liability for transfers of such
Certificates in violation of the transfer restrictions.

        Notwithstanding any other provision herein to the contrary, any
purported transfer of an ERISA-Restricted Certificate to or on behalf of a Plan
without the delivery to the Trustee, the Certificate Registrar and the Depositor
of a representation or an Opinion of Counsel satisfactory to the Trustee, the
Certificate Registrar and the Depositor as described above shall be void and of
no effect. The Trustee, the Certificate Registrar and the Depositor shall not
have any liability to any Person for any registration or transfer of any
ERISA-Restricted Certificate that is in fact not permitted by this Section
3.03(d) and the Trustee, the Certificate Registrar and the Depositor shall not
have any liability for making any payments due on such Certificate to the Holder
thereof or taking any other action with respect to such Holder under the
provisions of this Agreement so long as the transfer was registered by the
Trustee in accordance with the foregoing requirements. The Trustee, the
Certificate Registrar and the Depositor shall be entitled, but not obligated, to
recover from any Holder of any ERISA-Restricted Certificate that was in fact a
Plan and that held such Certificate in violation of this Section 3.03(d) all
payments made on such

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<page>

ERISA-Restricted Certificate at and after the time it commenced such holding.
Any such payments so recovered shall be paid and delivered to the last preceding
Holder of such Certificate that is not a Plan.

        (e)     As a condition of the registration of transfer or exchange of
any Certificate, the Certificate Registrar may require the certified taxpayer
identification number of the owner of the Certificate and the payment of a sum
sufficient to cover any tax or other governmental charge imposed in connection
therewith; provided, however, that the Certificate Registrar shall have no
obligation to require such payment or to determine whether or not any such tax
or charge may be applicable. No service charge shall be made to the
Certificateholder for any registration, transfer or exchange of Certificate.

        (f)     Notwithstanding anything to the contrary contained herein, no
Residual Certificate may be owned, pledged or transferred, directly or
indirectly, by or to (i) a Disqualified Organization or (ii) an individual,
corporation or partnership or other person unless, in the case of clause (ii),
such person is (A) not a Non-U.S. Person or (B) is a Non-U.S. Person that holds
a Residual Certificate in connection with the conduct of a trade or business
within the United States and has furnished the transferor and the Trustee with
an effective Internal Revenue Service Form W-8ECI or successor form at the time
and in the manner required by the Code (any such person who is not covered by
clause (A) or (B) above is referred to herein as a "Non-permitted Foreign
Holder").

        Prior to and as a condition of the registration of any transfer, sale or
other disposition of a Residual Certificate, the proposed transferee shall
deliver to the Trustee or the Certificate Registrar an affidavit in
substantially the form attached hereto as Exhibit D-1 representing and
warranting, among other things, that such transferee is neither a Disqualified
Organization, an agent or nominee acting on behalf of a Disqualified
Organization, nor a Non-permitted Foreign Holder (any such transferee, a
"Permitted Transferee"), and the proposed transferor shall deliver to the
Trustee an affidavit in substantially the form attached hereto as Exhibit D-2.
In addition, the Trustee or the Certificate Registrar may (but shall have no
obligation to) require, prior to and as a condition of any such transfer, the
delivery by the proposed transferee of an Opinion of Counsel, addressed to the
Depositor, the Trustee and the Certificate Registrar satisfactory in form and
substance to the Depositor, that such proposed transferee or, if the proposed
transferee is an agent or nominee, the proposed beneficial owner, is not a
Disqualified Organization, agent or nominee thereof, or Non-permitted Foreign
Holder. Notwithstanding the registration in the Certificate Register of any
transfer, sale, or other disposition of a Residual Certificate to a Disqualified
Organization, an agent or nominee thereof, or Non-permitted Foreign Holder, such
registration shall be deemed to be of no legal force or effect whatsoever and
such Disqualified Organization, agent or nominee thereof, or Non-permitted
Foreign Holder shall not be deemed to be a Certificateholder for any purpose
hereunder, including, but not limited to, the receipt of distributions on such
Residual Certificate. Neither the Trustee nor the Certificate Registrar shall be
under any liability to any person for any registration or transfer of a Residual
Certificate to a Disqualified Organization, agent or nominee thereof, or
Non-permitted Foreign Holder or for the maturity of any payments due on such
Residual Certificate to the Holder thereof or for taking any other action with
respect to such Holder under the provisions of the Agreement, so long as the
transfer was effected in accordance with this Section 3.03(f), unless the
Trustee or the Certificate Registrar shall have actual knowledge at the time of
such transfer or the time of such

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<page>

payment or other action that the transferee is a Disqualified Organization,
agent or nominee thereof, or Non-permitted Foreign Holder. The Trustee or the
Certificate Registrar shall be entitled to recover from any Holder of a Residual
Certificate that was a Disqualified Organization, agent or nominee thereof, or
Non-permitted Foreign Holder at the time it became a Holder or any subsequent
time it became a Disqualified Organization, agent or nominee thereof, or
Non-permitted Foreign Holder, all payments made on such Residual Certificate at
and after either such times (and all costs and expenses, including but not
limited to attorneys' fees, incurred in connection therewith). Any payment (not
including any such costs and expenses) so recovered by the Trustee or the
Certificate Registrar shall be paid and delivered to the last preceding Holder
of such Residual Certificate.

        If any purported transferee shall become a registered Holder of a
Residual Certificate in violation of the provisions of this Section 3.03(f),
then upon receipt of written notice to the Trustee or the Certificate Registrar
that the registration of transfer of such Residual Certificate was not in fact
permitted by this Section 3.03(f), the last preceding Permitted Transferee shall
be restored to all rights as Holder thereof retroactive to the date of such
registration of transfer of such Residual Certificate. Neither the Trustee nor
the Certificate Registrar shall be under any liability to any Person for any
registration of transfer of a Residual Certificate that is in fact not permitted
by this Section 3.03(f), for making any payment due on such Certificate to the
registered Holder thereof or for taking any other action with respect to such
Holder under the provisions of this Agreement so long as the transfer was
registered upon receipt of the affidavit described in the preceding paragraph of
this Section 3.03(f).

        (g)     Each Holder of a Residual Certificate, by such Holder's
acceptance thereof, shall be deemed for all purposes to have consented to the
provisions of this section.

        (h)     Notwithstanding any provision to the contrary herein, so long as
a Global Security representing any of the Class B11, Class B12 or Class B13
Certificates remains outstanding and is held by or on behalf of DTC, transfers
of a Global Security representing any such Certificates, in whole or in part,
shall only be made in accordance with Section 3.01 and this Section 3.03(h).

                (A)     Subject to clauses (B) and (C) of this Section 3.03(h),
        transfers of a Global Security representing any of the Class B11, Class
        B12 or Class B13 Certificates shall be limited to transfers of such
        Global Security, in whole or in part, to nominees of DTC or to a
        successor of DTC or such successor's nominee.

                (B)     Restricted Global Security to Regulation S Global
        Security. If a holder of a beneficial interest in a Restricted Global
        Security deposited with or on behalf of DTC wishes at any time to
        exchange its interest in such Restricted Global Security for an interest
        in a Regulation S Global Security, or to transfer its interest in such
        Restricted Global Security to a Person who wishes to take delivery
        thereof in the form of an interest in a Regulation S Global Security,
        such holder, provided such holder is not a U.S. person, may, subject to
        the rules and procedures of DTC, exchange or cause the exchange of such
        interest for an equivalent beneficial interest in the Regulation S
        Global Security. Upon receipt by the Certificate Registrar, of (I)
        instructions from DTC directing the Certificate Registrar, to be
        credited a beneficial interest in a Regulation S Global Security in

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<page>

        an amount equal to the beneficial interest in such Restricted Global
        Security to be exchanged but not less than the minimum denomination
        applicable to such holder's Certificates held through a Regulation S
        Global Security, (II) a written order given in accordance with DTC's
        procedures containing information regarding the participant account of
        DTC and, in the case of a transfer pursuant to and in accordance with
        Regulation S, the Euroclear or Clearstream account to be credited with
        such increase and (III) a certificate in the form of Exhibit L-1 hereto
        given by the holder of such beneficial interest stating that the
        exchange or transfer of such interest has been made in compliance with
        the transfer restrictions applicable to the Global Securities, including
        that the holder is not a U.S. person, and pursuant to and in accordance
        with Regulation S, the Certificate Registrar, shall reduce the principal
        amount of the Restricted Global Security and increase the principal
        amount of the Regulation S Global Security by the aggregate principal
        amount of the beneficial interest in the Restricted Global Security to
        be exchanged, and shall instruct Euroclear or Clearstream, as
        applicable, concurrently with such reduction, to credit or cause to be
        credited to the account of the Person specified in such instructions a
        beneficial interest in the Regulation S Global Security equal to the
        reduction in the principal amount of the Restricted Global Security.

                (C)     Regulation S Global Security to Restricted Global
        Security. If a holder of a beneficial interest in a Regulation S Global
        Security deposited with or on behalf of DTC wishes at any time to
        transfer its interest in such Regulation S Global Security to a Person
        who wishes to take delivery thereof in the form of an interest in a
        Restricted Global Security, such holder may, subject to the rules and
        procedures DTC, exchange or cause the exchange of such interest for an
        equivalent beneficial interest in a Restricted Global Security. Upon
        receipt by the Certificate Registrar, of (I) instructions from DTC
        directing the Certificate Registrar, to cause to be credited a
        beneficial interest in a Restricted Global Security in an amount equal
        to the beneficial interest in such Regulation S Global Security to be
        exchanged but not less than the minimum denomination applicable to such
        holder's Certificates held through a Restricted Global Security, to be
        exchanged, such instructions to contain information regarding the
        participant account with DTC to be credited with such increase, and (II)
        a certificate in the form of Exhibit L-2 hereto given by the holder of
        such beneficial interest and stating, among other things, that the
        Person transferring such interest in such Regulation S Global Security
        reasonably believes that the Person acquiring such interest in a
        Restricted Global Security is a QIB, is obtaining such beneficial
        interest in a transaction meeting the requirements of Rule 144A and in
        accordance with any applicable securities laws of any State of the
        United States or any other jurisdiction, then the Certificate Registrar,
        will reduce the principal amount of the Regulation S Global Security and
        increase the principal amount of the Restricted Global Security by the
        aggregate principal amount of the beneficial interest in the Regulation
        S Global Security to be transferred and the Certificate Registrar, shall
        instruct DTC, concurrently with such reduction, to credit or cause to be
        credited to the account of the Person specified in such instructions a
        beneficial interest in

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<page>

        the Restricted Global Security equal to the reduction in the principal
        amount of the Regulation S Global Security.

                (D)     Other Exchanges. In the event that a Global Security is
        exchanged for Certificates in definitive registered form without
        interest coupons, pursuant to Section 3.09(c) hereof, such Certificates
        may be exchanged for one another only in accordance with such procedures
        as are substantially consistent with the provisions above (including
        certification requirements intended to insure that such transfers comply
        with Rule 144A, comply with Rule 501(a)(1), (2), (3) or (7) or are to
        Non-U.S. Persons in compliance with Regulation S under the Act, as the
        case may be), and as may be from time to time adopted by the Certificate
        Registrar.

                (E)     Restrictions on U.S. Transfers. Transfers of interests
        in the Regulation S Global Security to U.S. persons (as defined in
        Regulation S) shall be limited to transfers made pursuant to the
        provisions of Section 3.03(h)(C).

        Section 3.04. Cancellation of Certificates.

        Any Certificate surrendered for registration of transfer or exchange
shall be cancelled and retained in accordance with normal retention policies
with respect to cancelled certificates maintained by the Trustee or the
Certificate Registrar.

        Section 3.05. Replacement of Certificates.

        If (i) any Certificate is mutilated and is surrendered to the Trustee or
any Authenticating Agent or (ii) the Trustee or any Authenticating Agent
receives evidence to its satisfaction of the destruction, loss or theft of any
Certificate, and there is delivered to the Trustee or the Authenticating Agent
such security or indemnity as may be required by them to save each of them
harmless, then, in the absence of notice to the Depositor and any Authenticating
Agent that such destroyed, lost or stolen Certificate has been acquired by a
bona fide purchaser, the Trustee shall execute and the Trustee or any
Authenticating Agent shall authenticate and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate
of like tenor and Certificate Principal Amount. Upon the issuance of any new
Certificate under this Section 3.05, the Trustee and Authenticating Agent may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Trustee or the Authenticating Agent) connected
therewith. Any replacement Certificate issued pursuant to this Section 3.05
shall constitute complete and indefeasible evidence of ownership in the
applicable Trust Fund, as if originally issued, whether or not the lost, stolen
or destroyed Certificate shall be found at any time.

        Section 3.06. Persons Deemed Owners.

        Subject to the provisions of Section 3.09 with respect to Book-Entry
Certificates, the Depositor, the Securities Administrator, the Master Servicer,
the Trustee, the Certificate Registrar and any agent of any of them may treat
the Person in whose name any Certificate is registered upon the books of the
Certificate Registrar as the owner of such Certificate for the

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purpose of receiving distributions pursuant to Sections 5.01 and 5.02 and for
all other purposes whatsoever, and neither the Depositor, the Securities
Administrator, the Master Servicer, the Trustee, the Certificate Registrar nor
any agent of any of them shall be affected by notice to the contrary.

        Section 3.07. Temporary Certificates.

        (a)     Pending the preparation of Definitive Certificates, upon the
order of the Depositor, the Trustee shall execute and the Authenticating Agent
shall authenticate and deliver temporary Certificates that are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the Definitive Certificates in lieu
of which they are issued and with such variations as the authorized officers
executing such Certificates may determine, as evidenced by their execution of
such Certificates.

        (b)     If temporary Certificates are issued, the Depositor will cause
Definitive Certificates to be prepared without unreasonable delay. After the
preparation of Definitive Certificates, the temporary Certificates shall be
exchangeable for Definitive Certificates upon surrender of the temporary
Certificates at the office or agency of the Certificate Registrar without charge
to the Holder. Upon surrender for cancellation of any one or more temporary
Certificates, the Trustee shall execute and the Authenticating Agent shall
authenticate and deliver in exchange therefor a like aggregate Certificate
Principal Amount of Definitive Certificates of the same Class in the authorized
denominations. Until so exchanged, the temporary Certificates shall in all
respects be entitled to the same benefits under this Agreement as Definitive
Certificates of the same Class.

        Section 3.08. Appointment of Paying Agent.

        The Trustee may appoint a Paying Agent (which may be the Trustee) for
the purpose of making distributions to Certificateholders hereunder. The
Securities Administrator is hereby appointed, and hereby accepts its appointment
as Paying Agent in respect of the Certificates. The Trustee shall cause such
Paying Agent (if other than the Trustee) to execute and deliver to the Trustee
an instrument in which such Paying Agent shall agree with the Trustee that such
Paying Agent will hold all sums held by it for the payment to Certificateholders
in an Eligible Account in trust for the benefit of the Certificateholders
entitled thereto until such sums shall be paid to the Certificateholders. All
funds remitted by the Trustee to any such Paying Agent for the purpose of making
distributions shall be paid to Certificateholders on each Distribution Date and
any amounts not so paid shall be returned on such Distribution Date to the
Trustee. If the Paying Agent is not the Trustee, the Trustee shall cause to be
remitted to the Paying Agent on or before the Business Day prior to each
Distribution Date, by wire transfer in immediately available funds, the funds to
be distributed on such Distribution Date. Any Paying Agent shall be either a
bank or trust company or otherwise authorized under law to exercise corporate
trust powers.

        Section 3.09. Book-Entry Certificates.

        (a)     Each Class of Book-Entry Certificates, upon original issuance,
shall be issued in the form of one or more typewritten Certificates representing
the Book-Entry Certificates, to be

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delivered to The Depository Trust Company, the initial Clearing Agency, by, or
on behalf of, the Depositor. The Book-Entry Certificates shall initially be
registered on the Certificate Register in the name of the nominee of the
Clearing Agency, and no Certificate Owner will receive a Definitive Certificate
representing such Certificate Owner's interest in the Book-Entry Certificates,
except as provided in Section 3.09(c). Unless Definitive Certificates have been
issued to Certificate Owners of Book-Entry Certificates pursuant to Section
3.09(c):

                (i)     the provisions of this Section 3.09 shall be in full
        force and effect;

                (ii)    the Depositor, the Securities Administrator, the Master
        Servicer, the Paying Agent, the Certificate Registrar and the Trustee
        may deal with the Clearing Agency for all purposes (including the making
        of distributions on the Book-Entry Certificates) as the authorized
        representatives of the Certificate Owners and the Clearing Agency shall
        be responsible for crediting the amount of such distributions to the
        accounts of such Persons entitled thereto, in accordance with the
        Clearing Agency's normal procedures;

                (iii)   to the extent that the provisions of this Section 3.09
        conflict with any other provisions of this Agreement, the provisions of
        this Section 3.09 shall control; and

                (iv)    the rights of Certificate Owners shall be exercised only
        through the Clearing Agency and the Clearing Agency Participants and
        shall be limited to those established by law and agreements between such
        Certificate Owners and the Clearing Agency and/or the Clearing Agency
        Participants. Unless and until Definitive Certificates are issued
        pursuant to Section 3.09(c), the initial Clearing Agency will make
        book-entry transfers among the Clearing Agency Participants and receive
        and transmit distributions of principal of and interest on the
        Book-Entry Certificates to such Clearing Agency Participants.

        (b)     Whenever notice or other communication to the Certificateholders
is required under this Agreement, unless and until Definitive Certificates shall
have been issued to Certificate Owners pursuant to Section 3.09(c), the Trustee
shall give all such notices and communications specified herein to be given to
Holders of the Book-Entry Certificates to the Clearing Agency.

        (c)     If (i) (A) the Depositor advises the Certificate Registrar in
writing that the Clearing Agency is no longer willing or able to discharge
properly its responsibilities with respect to the Book-Entry Certificates, and
(B) the Trustee or the Depositor is unable to locate a qualified successor, (ii)
the Depositor, at its option, advises the Trustee in writing that it elects to
terminate the book-entry system through the Clearing Agency or (iii) after the
occurrence of an Event of Default, Certificate Owners representing beneficial
interests aggregating not less than 50% of the Class Principal Amount of a Class
of Book-Entry Certificates identified as such to the Trustee by an Officer's
Certificate from the Clearing Agency advise the Trustee and the Clearing Agency
through the Clearing Agency Participants in writing that the continuation of a
book-entry system through the Clearing Agency is no longer in the best interests
of the Certificate Owners of a Class of Book-Entry Certificates, the Trustee
shall notify or cause the Certificate Registrar to notify the Clearing Agency to
effect notification to all Certificate

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Owners, through the Clearing Agency, of the occurrence of any such event and of
the availability of Definitive Certificates to Certificate Owners requesting the
same. Upon surrender to the Trustee of the Book-Entry Certificates by the
Clearing Agency, accompanied by registration instructions from the Clearing
Agency for registration, the Trustee shall issue the Definitive Certificates.
Neither the Depositor nor the Trustee shall be liable for any delay in delivery
of such instructions and may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of Definitive Certificates all
references herein to obligations imposed upon or to be performed by the Clearing
Agency shall be deemed to be imposed upon and performed by the Trustee, to the
extent applicable, with respect to such Definitive Certificates and the Trustee
shall recognize the holders of the Definitive Certificates as Certificateholders
hereunder.

                                   ARTICLE IV

                        ADMINISTRATION OF THE TRUST FUND

        Section 4.01. Collection Account.

        (a)     On the Closing Date, the Master Servicer shall open and shall
thereafter maintain a segregated account held in trust (the "Collection
Account"), entitled "Aurora Loan Services LLC, as Master Servicer, in trust for
the benefit of the Holders of Structured Adjustable Rate Mortgage Loan Trust
Mortgage Pass-Through Certificates, Series 2005-1." The Collection Account shall
relate solely to the Certificates issued by the Trust Fund hereunder, and funds
in such Collection Account shall not be commingled with any other monies.

        (b)     The Collection Account shall be an Eligible Account. If an
existing Collection Account ceases to be an Eligible Account, the Master
Servicer shall establish a new Collection Account that is an Eligible Account
within 30 days and transfer all funds on deposit in such existing Collection
Account into such new Collection Account.

        (c)     The Master Servicer shall give to the Trustee and the Securities
Administrator prior written notice of the name and address of the depository
institution at which the Collection Account is maintained and the account number
of such Collection Account. On each Master Servicer Remittance Date, the entire
amount on deposit in the Collection Account (subject to permitted withdrawals
set forth in Section 4.02), not including any amounts which are to be excluded
from the Available Distribution Amount for such Distribution Date pursuant to
clauses (A) through (H) of paragraph (i) of the definition thereof (other than
any amounts due or reimbursable to the Trustee, the Custodians or the Securities
Administrator pursuant to this Agreement), shall be remitted to the Securities
Administrator for deposit into the Certificate Account by wire transfer in
immediately available funds. The Master Servicer, at its option, may choose to
make daily remittances from the Collection Account to the Securities
Administrator for deposit into the Certificate Account.

        (d)     The Master Servicer shall deposit or cause to be deposited into
the Collection Account, no later than the Business Day following the Closing
Date, any amounts representing Scheduled Payments on the Mortgage Loans due
after the Cut-off Date and received by the Master Servicer on or before the
Closing Date. Thereafter, the Master Servicer shall deposit or

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cause to be deposited in the Collection Account on the applicable Remittance
Date the following amounts received or payments made by it (other than in
respect of principal of and interest on the Mortgage Loans due on or before the
Cut-Off Date):

                (i)     all payments on account of principal, including
        Principal Prepayments and late collections, on the Mortgage Loans;

                (ii)    all payments on account of interest on the Mortgage
        Loans (other than payments due prior to the Cut-off Date), net of the
        applicable Servicing Fee and Master Servicing Fee with respect to each
        such Mortgage Loan, but only to the extent of the amount permitted to be
        withdrawn or withheld from the Collection Account in accordance with
        Sections 5.04 and 9.21;

                (iii)   any unscheduled payment or other recovery with respect
        to a Mortgage Loan not otherwise specified in this paragraph (d),
        including any Subsequent Recovery, all Net Liquidation Proceeds with
        respect to the Mortgage Loans and REO Property, and all amounts received
        in connection with the operation of any REO Property, net of any unpaid
        Servicing Fees and Master Servicing Fees with respect to such Mortgage
        Loans, but only to the extent of the amount permitted to be withdrawn or
        withheld from the Collection Account in accordance with Sections 5.04
        and 9.21; provided that if the applicable Servicer is also the Retained
        Interest Holder with respect to any Mortgage Loan, payments on account
        of interest on the Mortgage Loans as to which such Servicer is the
        Retained Interest Holder may also be made net of the related Retained
        Interest with respect to each such Mortgage Loan.

                (iv)    all Insurance Proceeds;

                (v)     all Advances made by the Master Servicer or the
        applicable Servicer pursuant to Section 5.04 or the applicable Servicing
        Agreement;

                (vi)    all Prepayment Penalty Amounts; and

                (vii)   all proceeds of any Mortgage Loan purchased by any
        Person.

        (e)     Funds in the Collection Account may be invested in Eligible
Investments (selected by and at the written direction of the Master Servicer)
which shall mature not later than one Business Day prior to the Master Servicer
Remittance Date (except that if such Eligible Investment is an obligation of the
Trustee, then such Eligible Investment shall mature not later than such
applicable Master Servicer Remittance Date), and any such Eligible Investment
shall not be sold or disposed of prior to its maturity. All such Eligible
Investments shall be made in the name of the Master Servicer in trust for the
benefit of the Trustee and Holders of Structured Adjustable Rate Mortgage Loan
Trust, Mortgage Pass-Through Certificates, Series 2005-1. All income and gain
realized from any such investment shall be for the benefit of the Master
Servicer, while such Collection Account is maintained by the Master Servicer,
and shall be subject to its withdrawal or order from time to time and shall not
be part of the Trust Fund. The amount of any losses incurred in respect of any
such investments shall be deposited in such Collection Account by the Master
Servicer out of its own funds, without any right of reimbursement therefor,
immediately as realized. The foregoing requirements for deposit in the

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Collection Account are exclusive, it being understood and agreed that, without
limiting the generality of the foregoing, payments of interest on funds in the
Collection Account and payments in the nature of late payment charges or
assumption fees need not be deposited by the Master Servicer in the Collection
Account and may be retained by the Master Servicer or the applicable Servicer as
additional servicing compensation. If the Master Servicer deposits in the
Collection Account any amount not required to be deposited therein, it may at
any time withdraw such amount from such Collection Account.

        Section 4.02. Application of Funds in the Collection Account.

        The Master Servicer may, from time to time, make, or cause to be made,
withdrawals from the Collection Account for the following purposes:

                (i)     to reimburse itself or any Servicer for Advances made by
        it or by such Servicer pursuant to Section 5.04 or the applicable
        Servicing Agreement; the Master Servicer's right to reimburse itself
        pursuant to this subclause (i) is limited to amounts received on or in
        respect of particular Mortgage Loans (including, for this purpose,
        Liquidation Proceeds and amounts representing Insurance Proceeds with
        respect to the property subject to the related Mortgage) which represent
        late recoveries (net of the applicable Servicing Fee and the Master
        Servicing Fee) of payments of principal or interest respecting which any
        such Advance was made, it being understood, in the case of any such
        reimbursement, that the Master Servicer's or Servicer's right thereto
        shall be prior to the rights of the Certificateholders;

                (ii)    to reimburse itself or any Servicer for any Advances or
        Servicing Advances made by it or by such Servicer that it or such
        Servicer determines in good faith will not be recoverable from amounts
        representing late recoveries of payments of principal or interest
        respecting the particular Mortgage Loan as to which such Advance or
        Servicing Advance was made or from Liquidation Proceeds or Insurance
        Proceeds with respect to such Mortgage Loan, it being understood, in the
        case of any such reimbursement, that such Master Servicer's or
        Servicer's right thereto shall be prior to the rights of the
        Certificateholders;

                (iii)   to reimburse itself or any Servicer from Liquidation
        Proceeds for Liquidation Expenses and for amounts expended by it
        pursuant to Sections 9.20 and 9.22(a) or the applicable Servicing
        Agreement in good faith in connection with the restoration of damaged
        property and, to the extent that Liquidation Proceeds after such
        reimbursement exceed the unpaid principal balance of the related
        Mortgage Loan, together with accrued and unpaid interest thereon at the
        applicable Mortgage Rate less the applicable Servicing Fee and the
        Master Servicing Fee for such Mortgage Loan to the Due Date next
        succeeding the date of its receipt of such Liquidation Proceeds, to pay
        to itself out of such excess the amount of any unpaid assumption fees,
        late payment charges or other Mortgagor charges on the related Mortgage
        Loan and to retain any excess remaining thereafter as additional
        servicing compensation, it being understood, in the case of any such
        reimbursement or payment, that such Master Servicer's or Servicer's
        right thereto shall be prior to the rights of the Certificateholders;

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                (iv)    in the event it has elected not to pay itself the Master
        Servicing Fee out of any Mortgagor payment on account of interest or
        other recovery with respect to a particular Mortgage Loan prior to the
        deposit of such Mortgagor payment or recovery in the Collection Account,
        to pay to itself the Master Servicing Fee for each Distribution Date and
        any unpaid Master Servicing Fees for prior Distribution Dates, as
        reduced pursuant to Section 5.05, from any Mortgagor payment as to
        interest or such other recovery with respect to that Mortgage Loan, as
        is permitted by this Agreement;

                (v)     to reimburse itself or any Servicer for expenses
        incurred by and recoverable by or reimbursable to it or such Servicer
        pursuant to Section 9.04, 9.06, 9.16 or 9.22(a) or pursuant to the
        applicable Servicing Agreement (to the extent such reimbursement
        constitutes "unanticipated expenses" within the meaning of Treasury
        Regulation Section 1.860G-1(b)(3)(ii)), and to reimburse itself for any
        expenses reimbursable to it pursuant to Section 10.01(c);

                (vi)    to pay to the applicable Person, with respect to each
        Mortgage Loan or REO Property acquired in respect thereof that has been
        repurchased by such Person pursuant to this Agreement, all amounts
        received thereon and not distributed on the date on which the related
        repurchase was effected;

                (vii)   subject to Section 5.04, to pay to itself income earned
        on the investment of funds deposited in the Collection Account;

                (viii)  to make payments to the Securities Administrator on each
        Master Servicer Remittance Date for deposit into the Certificate Account
        in the amounts and in the manner provided for in Section 4.04;

                (ix)    to make distributions of the Retained Interest to the
        Retained Interest Holder on each Distribution Date (other than any
        Retained Interest not deposited into the Collection Account in
        accordance with Section 4.01(d)(iii));

                (x)     to make payment to itself, the Trustee and others
        pursuant to any provision of this Agreement and to reimburse the
        Custodian pursuant to the Custodial Agreement, but only to the extent
        that the items reimbursed constitute "unanticipated expenses" within the
        meaning of Treasury Regulation Section 1.860G-1(b)(3)(ii);

                (xi)    to withdraw funds deposited in error in the Collection
        Account;

                (xii)   to clear and terminate any Collection Account pursuant
        to Section 7.02;

                (xiii)  to reimburse a successor Master Servicer (solely in its
        capacity as successor Master Servicer, including the Securities
        Administrator), for any fee or advance occasioned by a termination of
        the Master Servicer, and the assumption of such duties by the Securities
        Administrator or a successor Master Servicer appointed by the Securities
        Administrator pursuant to Section 6.14, in each case to the extent not
        reimbursed by the terminated Master Servicer, it being understood, in
        the case of any such reimbursement or payment, that the right of the
        Master Servicer or the Securities Administrator thereto shall be prior
        to the rights of the Certificateholders; and

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                (xiv) to reimburse any Servicer for such amounts as are due
        thereto under the applicable Servicing Agreement and have not been
        retained by or paid to such Servicer to the extent provided in such
        Servicing Agreement provided such amounts are Servicing Fees or
        "anticipated expenses" within the meaning of Treasury Regulation Section
        1.860G-1(b)(3)(ii).

        If provided in the related Servicing Agreement, each Servicer shall be
entitled to retain as additional servicing compensation any Prepayment Interest
Excess (to the extent not offset by Prepayment Interest Shortfalls). The
Servicers of the Participations shall be entitled to retain as additional
servicing compensation any Prepayment Penalty Amounts received with respect to
the Participations.

        In connection with withdrawals pursuant to subclauses (i), (iii), (iv)
and (vi) above, the Master Servicer's or Servicer's entitlement thereto is
limited to collections or other recoveries on the related Mortgage Loan. The
Master Servicer shall therefore keep and maintain a separate accounting for each
Mortgage Loan it master services for the purpose of justifying any withdrawal
from the Collection Account it maintains pursuant to such subclause (i), (iii),
(iv) and (vi).

        In the event that the Master Servicer fails on any Master Servicer
Remittance Date to remit to the Securities Administrator any amounts required to
be so remitted to the Securities Administrator pursuant to sub-clause (viii) by
such date, the Master Servicer shall pay the Securities Administrator, for the
account of the Securities Administrator, interest calculated at the "prime rate"
(as published in the "Money Rates" section of The Wall Street Journal) on such
amounts not timely remitted for the period from and including that Master
Servicer Remittance Date to but not including the related Distribution Date. The
Master Servicer shall only be required to pay the Securities Administrator
interest for the actual number of days such amounts are not timely remitted
(e.g., one day's interest, if such amounts are remitted one day after the Master
Servicer Remittance Date).

        Section 4.03. Reports to Certificateholders.

        (a)     On each Distribution Date, the Securities Administrator shall
have prepared (based on information provided by the Master Servicer and the Cap
Provider) and shall make available to the Trustee and each Certificateholder a
written report setting forth the following information, by Mortgage Pool and
Certificate Group (on the basis of Mortgage Loan level information obtained from
the applicable Servicer and the Master Servicer):

                (i)     the aggregate amount of the distribution to be made on
        such Distribution Date to the Holders of each Class of Certificates,
        other than any Class of Notional Certificates, to the extent applicable,
        allocable to principal on the Mortgage Loans, including any Subsequent
        Recovery, Liquidation Proceeds and Insurance Proceeds, stating
        separately the amount attributable to scheduled principal payments and
        unscheduled payments in the nature of principal in each Mortgage Pool;

                (ii)    the aggregate amount of the distribution to be made on
        such Distribution Date to the Holders of each Class of Certificates
        allocable to interest, including any Accrual Amount added to the Class
        Principal Amount of any Class of Accrual Certificates;

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                (iii)   the amount, if any, of any distribution to the Holders
        of a Residual Certificate;

                (iv)    (A) the aggregate amount of any Advances required to be
        made by or on behalf of the Master Servicer or any Servicer (or, if
        applicable, the Securities Administrator, solely in its capacity as
        successor Master Servicer) with respect to such Distribution Date, (B)
        the aggregate amount of such Advances actually made, and (C) the amount,
        if any, by which (A) above exceeds (B) above;

                (v)     the Aggregate Principal Balance of the Mortgage Loans
        and the Pool Balance of each Mortgage Pool for such Distribution Date,
        after giving effect to payments allocated to principal reported under
        clause (i) above;

                (vi)    the Class Principal Amount (or Class Notional Amount) of
        each Class of Certificates, to the extent applicable, as of such
        Distribution Date after giving effect to payments allocated to principal
        reported under clause (i) above (and to the addition of any Accrual
        Amount in the case of any Class of Accrual Certificates), separately
        identifying any reduction of any of the foregoing Certificate Principal
        Amounts due to Realized Losses;

                (vii)   any Realized Losses realized with respect to the
        Mortgage Loans (x) in the applicable Prepayment Period and (y) in the
        aggregate since the Cut-off Date, stating separately the amount of
        Special Hazard Losses, Fraud Losses and Bankruptcy Losses and the
        aggregate amount of such Realized Losses, and the remaining Special
        Hazard Loss Amount, Fraud Loss Amount and Bankruptcy Loss Amount;

                (viii)  the amount of the Master Servicing Fees, Servicing Fees
        and Securities Administrator Fee paid during the Due Period to which
        such distribution relates;

                (ix)    the number and aggregate Scheduled Principal Balance of
        Mortgage Loans, as reported to the Securities Administrator by the
        Master Servicer, (a) remaining outstanding, (b) delinquent one month,
        (c) delinquent two months, (d) delinquent three or more months and (e)
        as to which foreclosure proceedings have been commenced as of the close
        of business on the last Business Day of the calendar month immediately
        preceding the month in which such Distribution Date occurs;

                (x)     the deemed aggregate principal balance of all REO
        Properties as of the close of business on the last Business Day of the
        calendar month immediately preceding the month in which such
        Distribution Date occurs;

                (xi)    with respect to substitution of Mortgage Loans in the
        preceding calendar month, the aggregate Scheduled Principal Balance of
        all such Deleted Mortgage Loans, and of all Qualifying Substitute
        Mortgage Loans;

                (xii)   the aggregate outstanding Interest Shortfalls and Net
        Prepayment Interest Shortfalls, if any, for each Class of Certificates,
        after giving effect to the distribution made on such Distribution Date;

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                (xiii)  the Certificate Interest Rate applicable to such
        Distribution Date with respect to each Class of Certificates;

                (xiv)   if applicable, the amount of any shortfall (i.e., the
        difference between the aggregate amounts of principal and interest which
        Certificateholders would have received if there were sufficient
        available amounts in the Certificate Account and the amounts actually
        distributed);

                (xv)    the amount of payments made to each of the Class B1,
        Class B2, Class B3, Class B4, Class B5, Class B7, Class B10 and Class
        B11 Certificates in respect of Floating Rate Certificate Shortfalls and
        the amount of any unpaid outstanding Floating Rate Certificate
        Shortfalls;

                (xvi)   the amount of any payments made by the Cap Provider to
        the Trust Fund under the Cap Agreements; and

                (xvii)  the amount of payments made to each Class of
        Certificates that are treated as payments received in respect of a REMIC
        3 Regular Interest and the amount of any payments to each Class of
        Certificates that are not treated as payments in respect of a REMIC 3
        Regular Interest.

        In the case of information furnished pursuant to subclauses (i), (ii)
and (viii) above, the amounts shall be expressed as a dollar amount per $1,000
of original principal amount of Certificates.

        The Securities Administrator shall make such report and additional loan
level information (and, at its option, any additional files provided by the
Master Servicer containing the same information in an alternative format)
available each month to the Trustee, Certificateholders and the Rating Agencies
via the Securities Administrator's internet website. The Trustee's internet
website shall initially be located at www.ctslink.com. Assistance in using the
website can be obtained by calling the Securities Administrator's customer
service desk at (301) 815-6600. Such parties that are unable to use the website
are entitled to have a paper copy mailed to them via first class mail by calling
the customer service desk and indicating such. The Securities Administrator
shall have the right to change the way such statements are distributed in order
to make such distribution more convenient and/or more accessible to the above
parties and the Securities Administrator shall provide timely and adequate
notification to all above parties regarding any such changes.

        The foregoing information and reports shall be prepared and determined
by the Securities Administrator based solely on Mortgage Loan data provided to
the Securities Administrator by the Master Servicer no later than four Business
Days prior to the Distribution Date. In preparing or furnishing the Mortgage
Loan data to the Securities Administrator, the Master Servicer shall be entitled
to rely conclusively on the accuracy of the information or data regarding the
Mortgage Loans and the related REO Property that has been provided to the Master
Servicer by each Servicer, and the Master Servicer shall not be obligated to
verify, recompute, reconcile or recalculate any such information or data. The
Securities Administrator shall be entitled to

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conclusively rely on the Mortgage Loan data provided by the Master Servicer and
shall have no liability for any errors in such Mortgage Loan data or other
information.

        On each Distribution Date, the Securities Administrator shall also
provide or make available to the Depositor a copy of the above described written
report, to the following address: Lehman Brothers Inc., 745 Seventh Avenue, 7th
Floor, New York, New York 10019, Attention: Michael Hitzmann, or to such other
address as the Depositor may designate.

        (b)     Upon the reasonable advance written request of any
Certificateholder that is a savings and loan, bank or insurance company, which
request, if received by the Trustee or the Securities Administrator, will be
promptly forwarded to the Master Servicer, the Master Servicer shall provide, or
cause to be provided, (or, to the extent that such information or documentation
is not required to be provided by a Servicer under the applicable Servicing
Agreement, shall use reasonable efforts to obtain such information and
documentation from such Servicer, and provide) to such Certificateholder such
reports and access to information and documentation regarding the Mortgage Loans
as such Certificateholder may reasonably deem necessary to comply with
applicable regulations of the Office of Thrift Supervision or its successor or
other regulatory authorities with respect to investment in the Certificates;
provided, however, that the Master Servicer shall be entitled to be reimbursed
by such Certificateholder for such Master Servicer's actual expenses incurred in
providing such reports and access.

        (c)     Within 90 days, or such shorter period as may be required by
statute or regulation, after the end of each calendar year, the Securities
Administrator shall have prepared and shall make available, upon written
request, to each Person who at any time during the calendar year was a
Certificateholder of record, and make available to Certificate Owners
(identified as such by the Clearing Agency) in accordance with applicable
regulations, a report summarizing the items provided to Certificateholders
pursuant to Section 4.03(a) on an annual basis as may be required to enable such
Holders to prepare their federal income tax returns. Such information shall
include the amount of original issue discount accrued on each Class of
Certificates and information regarding the expenses of the Trust Fund. The
Securities Administrator shall be deemed to have satisfied this requirement if
it forwards such information in any other format permitted by the Code. The
Master Servicer shall provide the Securities Administrator with such Mortgage
Loan level information as is necessary for the Securities Administrator to
prepare such reports.

        Section 4.04. Certificate Account.

        (a)     The Securities Administrator shall establish and maintain in its
name, as securities administrator, a trust account (the "Certificate Account"),
to be held in trust for the benefit of the Certificateholders until disbursed
pursuant to the terms of this Agreement. The Certificate Account shall be an
Eligible Account. If the existing Certificate Account ceases to be an Eligible
Account, the Securities Administrator shall establish a new Certificate Account
that is an Eligible Account within 20 Business Days and transfer all funds on
deposit in such existing Certificate Account into such new Certificate Account.
The Certificate Account shall relate solely to the Certificates issued hereunder
and funds in the Certificate Account shall be held separate and apart from and
shall not be commingled with any other monies including, without limitation,
other monies of the Securities Administrator held under this Agreement.

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        (b)     The Securities Administrator shall cause to be deposited into
the Certificate Account on the day on which, or, if such day is not a Business
Day, the Business Day immediately following the day on which, any monies are
remitted by the Master Servicer to the Securities Administrator all such
amounts. The Securities Administrator shall make withdrawals from the
Certificate Account only for the following purposes:

                (i)     to withdraw amounts deposited in the Certificate Account
        in error;

                (ii)    to pay itself the Securities Administrator Fee and any
        investment income earned with respect to funds in the Certificate
        Account invested in Eligible Investments as set forth in subsection (c)
        below, and to make payments to itself, the Trustee and others prior to
        making distributions pursuant to Section 5.02 for any expenses or other
        indemnification owing to itself, the Trustee and others pursuant to any
        provision of this Agreement;

                (iii)   to make payments of the Master Servicing Fee (to the
        extent not already withheld or withdrawn from the Collection Account by
        the Master Servicer) to the Master Servicer;

                (iv)    to make distributions to the Certificateholders pursuant
        to Article V; and

                (v)     to clear and terminate the Certificate Account pursuant
        to Section 7.02.

        (c)     The Securities Administrator may invest, or cause to be
invested, funds held in the Certificate Account, which funds, if invested, shall
be invested in Eligible Investments (which may be obligations of the Securities
Administrator). All such investments must mature no later than the next
Distribution Date, and shall not be sold or disposed of prior to their maturity.
All such Eligible Investments will be made in the name of the Securities
Administrator (in its capacity as such) or its nominee. All income and gain
realized from any such investment shall be paid to the Securities Administrator
and shall be subject to its withdrawal on order from time to time. The amount of
any losses incurred in respect of any such investments shall be paid by the
Securities Administrator for deposit in the Certificate Account out of its own
funds, without any right of reimbursement therefor, immediately as realized.
Funds held in the Certificate Account that are not invested shall be held in
cash.

        Section 4.05. Determination of LIBOR.

        (a)     If the outstanding Certificates include any LIBOR Certificates,
then on each LIBOR Determination Date the Securities Administrator shall
determine LIBOR on the basis of the offered LIBOR quotations of the Reference
Banks as of 11:00 a.m. London time on such LIBOR Determination Date as follows:

                (i)     If on any LIBOR Determination Date two or more of the
        Reference Banks provide such offered quotations, LIBOR for the next
        Accrual Period will be the arithmetic mean of such offered quotations
        (rounding such arithmetic mean if necessary to the nearest five decimal
        places);

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                (ii)    If on any LIBOR Determination Date only one or none of
        the Reference Banks provides such offered quotations, LIBOR for the next
        Accrual Period will be whichever is the higher of (x) LIBOR as
        determined on the previous LIBOR Determination Date or (y) the Reserve
        Interest Rate. The "Reserve Interest Rate" will be either (A) the rate
        per annum which the Securities Administrator determines to be the
        arithmetic mean (rounding such arithmetic mean if necessary to the
        nearest five decimal places) of the one-month Eurodollar lending rates
        that New York City banks selected by the Depositor are quoting, on the
        relevant LIBOR Determination Date, to the principal London offices of at
        least two leading banks in the London interbank market or (B) in the
        event that the Securities Administrator can determine no such arithmetic
        mean, the lowest one-month Eurodollar lending rate that the New York
        City banks selected by the Depositor are quoting on such LIBOR
        Determination Date to leading European banks; and

                (iii)   If on any LIBOR Determination Date the Securities
        Administrator is required but is unable to determine the Reserve
        Interest Rate in the manner provided in paragraph (ii) above, LIBOR for
        the next Accrual Period will be LIBOR as determined on the previous
        LIBOR Determination Date or, in the case of the first LIBOR
        Determination Date, the Initial LIBOR Rate.

        (b)     The establishment of LIBOR by the Securities Administrator and
the Securities Administrator's subsequent calculation of the Certificate
Interest Rate (or Rates) applicable to the LIBOR Certificates for the relevant
Accrual Period, in the absence of manifest error, will be final and binding. In
all cases, the Securities Administrator may conclusively rely on quotations of
LIBOR for the Reference Banks as such quotations appear on the display
designated "LIBOR" on the Bloomberg Financial Markets Commodities News.

        (c)     As used herein, "Reference Banks" shall mean four leading banks
engaged in transactions in Eurodollar deposits in the international Eurocurrency
market (i) with an established place of business in London, England, (ii) whose
quotations appear on the "Bloomberg Screen LIBOR Index Page" (as described in
the definition of LIBOR) on the applicable LIBOR Determination Date and (iii)
which have been designated as such by the Depositor and are able and willing to
provide such quotations to the Depositor on each LIBOR Determination Date. The
Reference Banks initially shall be: Barclay's plc, Bank of Tokyo, National
Westminster Bank and Trust Company and Bankers Trust Company. If any of the
initial Reference Banks should be removed from the Bloomberg Screen LIBOR Index
Page or in any other way fail to meet the qualifications of a Reference Bank,
the Depositor shall use its best efforts to designate alternate Reference Banks.

        (d)     If (i) with respect to any LIBOR Determination Date LIBOR is
determined pursuant to clause (a)(iii) of this Section and (ii) on the next
succeeding LIBOR Determination Date LIBOR would, without giving effect to this
paragraph (d), be determined pursuant to such clause (a)(iii), then the
Depositor shall select an alternative interest rate index over which the
Depositor has no control that is used for determining Eurodollar lending rates
and is calculated and published (or otherwise made available) by an independent
third party, and such alternative interest rate index shall constitute LIBOR for
all purposes hereof.

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                                   ARTICLE V

                    DISTRIBUTIONS TO HOLDERS OF CERTIFICATES

        Section 5.01. Distributions Generally.

        (a)     Subject to Section 7.01 with respect to the final distribution
on the Certificates, on each Distribution Date the Trustee or the Paying Agent
shall make distributions in accordance with this Article V. Such distributions
shall be made by check mailed to each Certificateholder's address as it appears
on the Certificate Register of the Certificate Registrar or, upon written
request made to the Securities Administrator at least five Business Days prior
to the related Distribution Date to any Certificateholder, by wire transfer in
immediately available funds to an account specified in the request and at the
expense of such Certificateholder; provided, however, that the final
distribution in respect of any Certificate shall be made only upon presentation
and surrender of such Certificate at the Corporate Trust Office. Wire transfers
may be made at the expense of the Holder requesting such wire transfer by
deducting a wire transfer fee from the related distribution. Notwithstanding
such final payment of principal of any of the Certificates, each Residual
Certificate will remain outstanding until the termination of each REMIC and the
payment in full of all other amounts due with respect to the Residual
Certificate and at such time such final payment in retirement of the Residual
Certificate will be made only upon presentation and surrender of such
Certificate at the Corporate Trust Office of the Certificate Registrar. If any
payment required to be made on the Certificates is to be made on a day that is
not a Business Day, then such payment will be made on the next succeeding
Business Day.

        (b)     All distributions or allocations made with respect to
Certificateholders within each Class on each Distribution Date shall be
allocated among the outstanding Certificates in such Class equally in proportion
to their respective initial Certificate Principal Amounts (or initial Notional
Amounts).

        Section 5.02. Distributions from the Certificate Account.

        (a)     On each Distribution Date, the Securities Administrator (or any
successor Paying Agent on behalf of the Trustee) shall withdraw from the
Certificate Account, to the extent of funds available therefor, the Available
Distribution Amount (excluding all Prepayment Penalty Amounts) with respect to
each Mortgage Pool, and shall distribute such amount in the following order of
priority based on the report of the Securities Administrator:

                (i)     from the Available Distribution Amount for each Mortgage
        Pool, to each Class of Senior Certificates in the related Certificate
        Group, the Accrued Certificate Interest thereon for such Distribution
        Date, as reduced by such Class's allocable share of any Net Prepayment
        Interest Shortfalls for the related Mortgage Pool for such Distribution
        Date; provided, however, that any shortfall in available amounts for a
        Mortgage Pool shall be allocated among the Classes of the related
        Certificate Group in proportion to the amount of Accrued Certificate
        Interest (as so reduced) that would otherwise be distributable thereon;

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                (ii)    from the remaining Available Distribution Amount for
        each Mortgage Pool, to each Class of Senior Certificates in the related
        Certificate Group, any related Interest Shortfall for such Distribution
        Date; provided, however, that any shortfall in available amounts for
        each Mortgage Pool shall be allocated among the Classes of the related
        Certificate Group in proportion to the Interest Shortfall (as so
        reduced) for each such Class on such Distribution Date;

                (iii)   from the remaining Available Distribution Amount for
        each Mortgage Pool, to the Senior Certificates of the related
        Certificate Group in reduction of the Class Principal Amounts thereof,
        concurrently, as follows:

                        (A)     to the Class R, Class 1-A1 and Class 1-A2
                Certificates from the Available Distribution Amount for Pool 1,
                the Senior Principal Distribution Amount for such Mortgage Pool,
                in reduction of their Class Principal Amounts, sequentially as
                follows:

                                (I)     first, to the Class R Certificate, until
                        its Class Principal Amount has been reduced to zero; and

                                (II)    second, pro rata, to the Class 1-A1 and
                        Class 1-A2 Certificates until their Class Principal
                        Amounts have been reduced to zero;

                        (B)     to the Class 2-A Certificates from the Available
                Distribution Amount for Pool 2 for such Distribution Date, the
                Senior Principal Distribution Amount for such Mortgage Pool for
                such Distribution Date, in reduction of its Class Principal
                Amount until its Class Principal Amount has been reduced to
                zero;

                        (C)     to the Class 3-A Certificates from the Available
                Distribution Amount for Pool 3 for such Distribution Date, the
                Senior Principal Distribution Amount for such Mortgage Pool for
                such Distribution Date, in reduction of its Class Principal
                Amount until its Class Principal Amount has been reduced to
                zero;

                        (D)     pro rata, to the Class 4-A1 and Class 4-A2
                Certificates from the Available Distribution Amount for Pool 4
                for such Distribution Date, the Senior Principal Distribution
                Amount for such Mortgage Pool for such Distribution Date, in
                reduction of their Class Principal Amounts until their Class
                Principal Amounts have been reduced to zero;

                        (E)     pro rata, to the Class 5-A1 and Class 5-A2
                Certificates from the Available Distribution Amount for Pool 5
                for such Distribution Date, the Senior Principal Distribution
                Amount for such Mortgage Pool for such Distribution Date, in
                reduction of their Class Principal Amounts until their Class
                Principal Amounts have been reduced to zero;

                        (F)     to the Class 6-A Certificates from the Available
                Distribution Amount for Pool 6 for such Distribution Date, the
                Senior Principal Distribution

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<page>

                Amount for such Mortgage Pool for such Distribution Date, in
                reduction of its Class Principal Amount until its Class
                Principal Amount has been reduced to zero; and

                (iv)    from the remaining Available Distribution Amount for
        each Mortgage Pool, subject to the prior distribution of amounts
        pursuant to Section 5.02(g) in the case of clauses (C), (F), (I), (L),
        (O), (R), (U), (X), (AA), (DD), (GG), (JJ) and (MM) below, to the
        Subordinated Certificates, in the following order of priority:

                        (A)     concurrently, to the Class B1 and Class B1X
                Certificates, the Accrued Certificate Interest thereon for such
                Distribution Date, as reduced by such Class's allocable share of
                any Net Prepayment Interest Shortfalls for such Distribution
                Date;

                        (B)     concurrently, to the Class B1 and Class B1X
                Certificates, any Interest Shortfall for such Class on such
                Distribution Date;

                        (C)     to the Class B1 Certificates, in reduction of
                the Class Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Class Principal Amount thereof has been
                reduced to zero;

                        (D)     concurrently, to the Class B2 and Class B2X
                Certificates, the Accrued Certificate Interest thereon for such
                Distribution Date, as reduced by such Class's allocable share of
                any Net Prepayment Interest Shortfalls for such Distribution
                Date;

                        (E)     concurrently, to the Class B2 and Class B2X
                Certificates, any Interest Shortfall for such Class on such
                Distribution Date;

                        (F)     to the Class B2 Certificates, in reduction of
                the Class Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Class Principal Amount thereof has been
                reduced to zero;

                        (G)     concurrently, to the Class B3 and Class B3X
                Certificates, the Accrued Certificate Interest thereon for such
                Distribution Date, as reduced by such Class's allocable share of
                any Net Prepayment Interest Shortfalls for such Distribution
                Date;

                        (H)     concurrently, to the Class B3 and Class B3X
                Certificates, any Interest Shortfall for such Class on such
                Distribution Date;

                        (I)     to the Class B3 Certificates, in reduction of
                the Class Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in

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<page>

                Section 5.02(c), until the Class Principal Amount thereof has
                been reduced to zero;

                        (J)     concurrently, to the Class B4 and Class B4X
                Certificates, the Accrued Certificate Interest thereon for such
                Distribution Date, as reduced by such Class's allocable share of
                any Net Prepayment Interest Shortfalls for such Distribution
                Date;

                        (K)     concurrently, to the Class B4 and Class B4X
                Certificates, any Interest Shortfall for such Class on such
                Distribution Date;

                        (L)     to the Class B4 Certificates, in reduction of
                the Class Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Class Principal Amount thereof has been
                reduced to zero;

                        (M)     concurrently, to the Class B5 and Class B5X
                Certificates, the Accrued Certificate Interest thereon for such
                Distribution Date, as reduced by such Class's allocable share of
                any Net Prepayment Interest Shortfalls for such Distribution
                Date;

                        (N)     concurrently, to the Class B5 and Class B5X
                Certificates, any Interest Shortfall for such Class on such
                Distribution Date;

                        (O)     to the Class B5 Certificates, in reduction of
                the Class Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Class Principal Amount thereof has been
                reduced to zero;

                        (P)     to the Class B6 Certificates, the Accrued
                Certificate Interest thereon for such Distribution Date, as
                reduced by such Class's allocable share of any Net Prepayment
                Interest Shortfalls for such Distribution Date;

                        (Q)     to the Class B6 Certificates, any Interest
                Shortfall for such Class on such Distribution Date;

                        (R)     to the Class B6 Certificates, in reduction of
                the Class Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Class Principal Amount thereof has been
                reduced to zero;

                        (S)     concurrently, to the Class B7 and Class B7X
                Certificates, the Accrued Certificate Interest thereon for such
                Distribution Date, as reduced by such Class's allocable share of
                any Net Prepayment Interest Shortfalls for such Distribution
                Date;

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<page>

                        (T)     concurrently, to the Class B7 and Class B7X
                Certificates, any Interest Shortfall for such Class on such
                Distribution Date;

                        (U)     to the Class B7 Certificates, in reduction of
                the Class Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Class Principal Amount thereof has been
                reduced to zero;

                        (V)     to the Class B8 Certificates, the Accrued
                Certificate Interest thereon for such Distribution Date, as
                reduced by such Class's allocable share of any Net Prepayment
                Interest Shortfalls for such Distribution Date;

                        (W)     to the Class B8 Certificates, any Interest
                Shortfall for such Class on such Distribution Date;

                        (X)     to the Class B8 Certificates, in reduction of
                the Class Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Class Principal Amount thereof has been
                reduced to zero;

                        (Y)     to the Class B9 Certificates, the Accrued
                Certificate Interest thereon for such Distribution Date, as
                reduced by such Class's allocable share of any Net Prepayment
                Interest Shortfalls for such Distribution Date;

                        (Z)     to the Class B9 Certificates, any Interest
                Shortfall for such Class on such Distribution Date;

                        (AA)    to the Class B9 Certificates, in reduction of
                the Class Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Class Principal Amount thereof has been
                reduced to zero;

                        (BB)    concurrently, to the Class B10 and Class B10X
                Certificates, the Accrued Certificate Interest thereon for such
                Distribution Date, as reduced by such Class's allocable share of
                any Net Prepayment Interest Shortfalls for such Distribution
                Date;

                        (CC)    concurrently, to the Class B10 and Class B10X
                Certificates, any Interest Shortfall for such Class on such
                Distribution Date;

                        (DD)    to the Class B10 Certificates, in reduction of
                the Class Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Class Principal Amount thereof has been
                reduced to zero;

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<page>

                        (EE)    concurrently, to the Class B11 and Class B11X
                Certificates, the Accrued Certificate Interest thereon for such
                Distribution Date, as reduced by such Class's allocable share of
                any Net Prepayment Interest Shortfalls for such Distribution
                Date;

                        (FF)    concurrently, to the Class B11 and Class B11X
                Certificates, any Interest Shortfall for such Class on such
                Distribution Date;

                        (GG)    to the Class B11 Certificates, in reduction of
                the Class Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Class Principal Amount thereof has been
                reduced to zero;

                        (HH)    to the Class B12 Certificates, the Accrued
                Certificate Interest thereon for such Distribution Date, as
                reduced by such Class's allocable share of any Net Prepayment
                Interest Shortfalls for such Distribution Date;

                        (II)    to the Class B12 Certificates, any Interest
                Shortfall for such Class on such Distribution Date;

                        (JJ)    to the Class B12 Certificates, in reduction of
                the Class Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Class Principal Amount thereof has been
                reduced to zero;

                        (KK)    to the Class B13 Certificates, the Accrued
                Certificate Interest thereon for such Distribution Date, as
                reduced by such Class's allocable share of any Net Prepayment
                Interest Shortfalls for such Distribution Date;

                        (LL)    to the Class B13 Certificates, any Interest
                Shortfall for such Class on such Distribution Date;

                        (MM)    to the Class B13 Certificates, in reduction of
                the Class Principal Amount thereof, such Class's Subordinate
                Class Percentage of each Subordinate Principal Distribution
                Amount for such Distribution Date, except as provided in Section
                5.02(c), until the Class Principal Amount thereof has been
                reduced to zero; and

                        (NN)    to the Class Z Certificates, the Class Z Extra
                Distribution Amount for such Distribution Date and an amount
                equal to any Class Z Extra Distribution Amount for prior
                Distribution Dates not previously paid.

        (b)     Net Prepayment Interest Shortfalls for each Mortgage Pool shall
be allocated among the Certificates of the related Certificate Group and the
Subordinate Certificates pro rata based on (i) in the case of the related Senior
Certificates, the Accrued Certificate Interest otherwise distributable thereon,
and (ii) in the case of the Subordinate Certificates, interest

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<page>

accrued (at the Underlying Subordinate Rate for each Mortgage Pool) on the
related Apportioned Principal Balances. Amounts so allocated to the Class B1,
Class B2, Class B3, Class B4, Class B5, Class B7, Class B10 and Class B11
Certificates will be allocated between the Class B1 and Class B1X Certificates,
between the Class B2 and Class B2X Certificates, between the Class B3 and Class
B3X Certificates, between the Class B4 and Class B4X Certificates, between the
Class B5 and Class B5X Certificates, between the Class B7 and Class B7X
Certificates, Class B10 and Class B10X Certificates or between the Class B11 and
Class B11X Certificates, as the case may be, proportionately, based upon the
Accrued Certificate Interest thereon.

        (c)     (i) if on any Distribution Date the Credit Support Percentage
for the Class B1 Certificates is less than the Original Credit Support
Percentage for such Class, then, notwithstanding anything to the contrary in
Section 5.02(a), no distribution of amounts described in clauses (ii) and (iii)
of the definition of Subordinate Principal Distribution Amount will be made in
respect of the Class B2, Class B3, Class B4, Class B5, Class B6, Class B7, Class
B8, Class B9, Class B10, Class B11, Class B12 or Class B13 Certificates on such
Distribution Date; (ii) if on any Distribution Date the Credit Support
Percentage for the Class B2 Certificates is less than the Original Credit
Support Percentage for such Class, then, notwithstanding anything to the
contrary in Section 5.02(a), no distribution of amounts described in clauses
(ii) and (iii) of the definition of Subordinate Principal Distribution Amount
will be made in respect of the Class B3, Class B4, Class B5, Class B6, Class B7,
Class B8, Class B9, Class B10, Class B11, Class B12 or Class B13 Certificates on
such Distribution Date; (iii) if on any Distribution Date the Credit Support
Percentage for the Class B3 Certificates is less than the Original Credit
Support Percentage for such Class, then, notwithstanding anything to the
contrary in Section 5.02(a), no distribution of amounts described in clauses
(ii) and (iii) of the definition of Subordinate Principal Distribution Amount
will be made in respect of the Class B4, Class B5, Class B6, Class B7, Class B8,
Class B9, Class B10, Class B11, Class B12 or Class B13 Certificates on such
Distribution Date; (iv) if on any Distribution Date the Credit Support
Percentage for the Class B4 Certificates is less than the Original Credit
Support Percentage for such Class, then, notwithstanding anything to the
contrary in Section 5.02(a), no distribution of amounts described in clauses
(ii) and (iii) of the definition of Subordinate Principal Distribution Amount
will be made in respect of the Class B5, Class B6, Class B7, Class B8, Class B9,
Class B10, Class B11, Class B12 or Class B13 Certificates on such Distribution
Date; (v) if on any Distribution Date the Credit Support Percentage for the
Class B5 Certificates is less than the Original Credit Support Percentage for
such Class, then, notwithstanding anything to the contrary in Section 5.02(a),
no distribution of amounts described in clauses (ii) and (iii) of the definition
of Subordinate Principal Distribution Amount will be made in respect of the
Class B6, Class B7, Class B8, Class B9, Class B10, Class B11, Class B12 or Class
B13 Certificates on such Distribution Date; (vi) if on any Distribution Date the
Credit Support Percentage for the Class B6 Certificates is less than the
Original Credit Support Percentage for such Class, then, notwithstanding
anything to the contrary in Section 5.02(a), no distribution of amounts
described in clauses (ii) and (iii) of the definition of Subordinate Principal
Distribution Amount will be made in respect of the Class B7, Class B8, Class B9,
Class B10, Class B11, Class B12 or Class B13 Certificates on such Distribution
Date; (vii) if on any Distribution Date the Credit Support Percentage for the
Class B7 Certificates is less than the Original Credit Support Percentage for
such Class, then, notwithstanding anything to the contrary in Section 5.02(a),
no distribution of amounts described in clauses (ii) and (iii) of the definition
of Subordinate Principal Distribution Amount will be made in respect of the
Class B8, Class B9, Class B10, Class B11, Class B12 or

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Class B13 Certificates on such Distribution Date; (viii) if on any Distribution
Date the Credit Support Percentage for the Class B8 Certificates is less than
the Original Credit Support Percentage for such Class, then, notwithstanding
anything to the contrary in Section 5.02(a), no distribution of amounts
described in clauses (ii) and (iii) of the definition of Subordinate Principal
Distribution Amount will be made in respect of the Class B9, Class B10, Class
B11, Class B12 or Class B13 Certificates on such Distribution Date; (ix) if on
any Distribution Date the Credit Support Percentage for the Class B9
Certificates is less than the Original Credit Support Percentage for such Class,
then, notwithstanding anything to the contrary in Section 5.02(a), no
distribution of amounts described in clauses (ii) and (iii) of the definition of
Subordinate Principal Distribution Amount will be made in respect of the Class
B10, Class B11, Class B12 or Class B13 Certificates on such Distribution Date;
(x) if on any Distribution Date the Credit Support Percentage for the Class B10
Certificates is less than the Original Credit Support Percentage for such Class,
then, notwithstanding anything to the contrary in Section 5.02(a), no
distribution of amounts described in clauses (ii) and (iii) of the definition of
Subordinate Principal Distribution Amount will be made in respect of the Class
B11, Class B12 or Class B13 Certificates on such Distribution Date; (xi) if on
any Distribution Date the Credit Support Percentage for the Class B11
Certificates is less than the Original Credit Support Percentage for such Class,
then, notwithstanding anything to the contrary in Section 5.02(a), no
distribution of amounts described in clauses (ii) and (iii) of the definition of
Subordinate Principal Distribution Amount will be made in respect of the Class
B12 or Class B13 Certificates on such Distribution Date; and (xii) if on any
Distribution Date the Credit Support Percentage for the Class B12 Certificates
is less than the Original Credit Support Percentage for such Class, then,
notwithstanding anything to the contrary in Section 5.02(a), no distribution of
amounts described in clauses (ii) and (iii) of the definition of Subordinate
Principal Distribution Amount will be made in respect of the Class B13
Certificates on such Distribution Date;

        Any amount not distributed in respect of any Class on any Distribution
Date pursuant to the immediately preceding paragraph will be allocated among the
remaining Subordinate Classes in proportion to their respective Certificate
Principal Amounts.

        (d)     On each Distribution Date, the Securities Administrator shall
distribute sequentially to the Holders of (i) the Class B1 and Class B2
Certificates, pro rata, any payments received by the Securities Administrator
under the terms of the Cap Agreement related to the Class B1 and Class B2
Certificates up to the amount of any Floating Rate Certificate Shortfall related
to such Certificates; (ii) the Class B3 and Class B4 Certificates, pro rata, any
payments received by the Securities Administrator under the terms of the Cap
Agreement related to the Class B3 and Class B4 Certificates up to the amount of
any Floating Rate Certificate Shortfall related to such Certificates; (iii) the
Class B5 Certificates any payments received by the Securities Administrator
under the terms of the Cap Agreement related to the Class B5 Certificates up to
the amount of any Floating Rate Certificate Shortfall related to such
Certificates; (iv) the Class B7 Certificates any payments received by the
Securities Administrator under the terms of the Cap Agreement related to the
Class B7 Certificates up to the amount of any Floating Rate Certificate
Shortfall related to such Certificates; (v) the Class B10 Certificates any
payments received by the Securities Administrator under the terms of the Cap
Agreement related to the Class B10 Certificates up to the amount of any Floating
Rate Certificate Shortfall related to such Certificates; (vi) the Class B11
Certificates any payments received by the Securities Administrator under the
terms of the Cap Agreement related to the Class B11

                                       85
<page>

Certificates up to the amount of any Floating Rate Certificate Shortfall related
to such Certificates; and (vii) the Class CX Certificates any amounts received
by the Securities Administrator under the terms of the Cap Agreements that are
not used to pay the Floating Rate Certificate Shortfall; provided, however, that
for any Distribution Date on which there is a payment under a Cap Agreement
based on a notional balance in excess of the aggregate Certificate Principal
Amount of the related Class of Certificates, the amount representing such excess
payment shall not be an asset of the Trust Fund and, instead, shall be paid into
and distributed out of a separate trust created by this Agreement for the
benefit of the Class CX Certificates and shall be distributed to the Class CX
Certificates; provided, further, however, that any amounts payable pursuant to
the terms of the Cap Agreement related to the Class B1 and Class B2 Certificates
or the Cap Agreement related to the Class B3 and Class B4 Certificates will be
allocated, pro rata, between the Class B1 and Class B2 Certificates or between
the Class B3 and Class B4 Certificates, as applicable, based on their
respective initial Class Principal Amounts, in each case up to the amount of the
applicable Floating Rate Certificate Shortfall.

        (e)     On each Distribution Date, the Paying Agent shall distribute to
the Holders of the Class P Certificates, any Prepayment Penalty Amounts paid by
borrowers upon voluntary full or partial prepayment of the Mortgage Loans in
Pool 1, Pool 2, Pool 3, Pool 4, Pool 5 and Pool 6.

        (f)     On each Distribution Date, the Paying Agent shall distribute to
the Holder of the Class R Certificate any Available Distribution Amount for each
of the Mortgage Pools remaining for such Distribution Date after application of
all amounts described in paragraph (a) and (e) of this Section 5.02. Any
distributions pursuant to this paragraph (f) shall not reduce the Class
Principal Amount of the Class R Certificate.

        (g)     (i)    (A) On each Distribution Date prior to the Credit Support
Depletion Date but on or after the date on which the aggregate Certificate
Principal Amount of the Senior Certificates of any Certificate Group has been
reduced to zero, amounts otherwise distributable as principal on each Class of
Subordinate Certificates in accordance with the priorities set forth in Section
5.02(a)(v), in reverse order of priority, in respect of such Class's Subordinate
Class Percentage of the Subordinate Principal Distribution Amount for the
Mortgage Pool relating to such retired Senior Certificates, shall be distributed
as principal to the Senior Certificates remaining outstanding in accordance with
the priorities set forth in Section 5.02(a)(iv), until the Class Principal
Amounts thereof have been reduced to zero, provided that on such Distribution
Date (a) the Aggregate Subordinate Percentage for such Distribution Date is less
than 200% of the Aggregate Subordinate Percentage as of the Cut-off Date or (b)
the average outstanding principal balance of the Mortgage Loans in Pool 1 (if
the aggregate Certificate Principal Amount of the Senior Certificates of Group
2, Group 3, Group 4, Group 5 or Group 6 has been reduced to zero), Pool 2 (if
the aggregate Certificate Principal Amount of the Senior Certificates of Group
1, Group 3, Group 4, Group 5 or Group 6 has been reduced to zero), Pool 3 (if
the aggregate Certificate Principal Amount of the Senior Certificates of Group
1, Group 2, Group 4, Group 5 or Group 6 has been reduced to zero), Pool 4 (if
the aggregate Certificate Principal Amount of the Senior Certificates of Group
1, Group 2, Group 3, Group 5 or Group 6 has been reduced to zero), Pool 5 (if
the aggregate Certificate Principal Amount of the Senior Certificates of Group
1, Group 2, Group 3, Group 4 or Group 6 has been reduced to zero) or Pool 6 (if
the aggregate Certificate Principal Amount of the Senior Certificates of Group
1, Group 2, Group 3, Group 4 or Group 5 has been reduced to zero), that are
delinquent 60 days or more for the last six months as a percentage of the
related Group Subordinate Amount is greater than or equal to 50%.

                (B)     On each Distribution Date on which the Senior
        Certificates of two or more Certificate Groups remain outstanding, any
        amounts distributable pursuant to this Section 5.02(g)(i) will be
        distributed in proportion to the

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        aggregate Certificate Principal Amounts of such Certificates of each
        such Certificate Group.

                (ii)    (A)    On any Distribution Date on which any Certificate
        Group constitutes an Undercollateralized Group, all amounts otherwise
        distributable as principal on the Subordinate Certificates, in reverse
        order of priority (other than amounts necessary to pay unpaid Interest
        Shortfalls) (or, following the Credit Support Depletion Date, such other
        amounts described in the immediately following sentence), will be
        distributed as principal to the Senior Certificates of such
        Undercollateralized Group in accordance with the priorities set forth in
        Section 5.02(a)(iv), until the aggregate Certificate Principal Amount of
        such Senior Certificates equals the Pool Balance of the related Mortgage
        Pool (such distribution, an "Undercollateralization Distribution"). In
        the event that any Certificate Group constitutes an Undercollateralized
        Group on any Distribution Date following the Credit Support Depletion
        Date, Undercollateralization Distributions will be made from the excess
        of the Available Distribution Amount for the other such Mortgage Pools
        not related to an Undercollateralized Group remaining after all required
        amounts have been distributed to the Senior Certificates of the other
        Certificate Groups. In addition, the amount of any unpaid Interest
        Shortfalls with respect to an Undercollateralized Group on any
        Distribution Date (including any Interest Shortfalls for such
        Distribution Date) will be distributed to the Senior Certificates of
        such Undercollateralized Group prior to the payment of any
        Undercollateralization Distributions from amounts otherwise
        distributable as principal on the Subordinate Certificates, in reverse
        order of priority (or, following the Credit Support Depletion Date, as
        provided in the preceding sentence).

        (h)     If on any Distribution Date two or more Certificate Groups are
Undercollateralized Groups and one or more Certificate Group is not an
Undercollateralized Group, the distributions described in paragraph (ii)(A)
above will be made in proportion to the amount by which the aggregate
Certificate Principal Amount of the Senior Certificates, after giving effect to
distributions pursuant to Sections 5.02(a) and (b) on such Distribution Date, of
each Undercollateralized Group exceeds the Pool Balance of the related Mortgage
Pool for such Distribution Date.

        Section 5.03. Allocation of Realized Losses.

        (a)     (i) On any Distribution Date, the principal portion of each
Realized Loss (other than any Excess Loss) in respect of a Mortgage Loan shall
be allocated in the following order of priority:

                        first, to the Class B13 Certificates, until the Class
                Principal Amount thereof has been reduced to zero;

                        second, to the Class B12 Certificates, until the Class
                Principal Amount thereof has been reduced to zero;

                        third, to the Class B11 Certificates, until the Class
                Principal Amount thereof has been reduced to zero;

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                        fourth, to the Class B10 Certificates, until the Class
                Principal Amount thereof has been reduced to zero;

                        fifth, to the Class B9 Certificates, until the Class
                Principal Amount thereof has been reduced to zero;

                        sixth, to the Class B8 Certificates, until the Class
                Principal Amount thereof has been reduced to zero;

                        seventh, to the Class B7 Certificates, until the Class
                Principal Amount thereof has been reduced to zero;

                        eighth, to the Class B6 Certificates, until the Class
                Principal Amount thereof has been reduced to zero;

                        ninth, to the Class B5 Certificates, until the Class
                Principal Amount thereof has been reduced to zero;

                        tenth, to the Class B4 Certificates, until the Class
                Principal Amount thereof has been reduced to zero;

                        eleventh, to the Class B3 Certificates, until the Class
                Principal Amount thereof has been reduced to zero;

                        twelfth, to the Class B2 Certificates, until the Class
                Principal Amount thereof has been reduced to zero;

                        thirteenth, to the Class B1 Certificates, until the
                Class Principal Amount thereof has been reduced to zero; and

                        fourteenth, to the Classes of Senior Certificates of the
                related Certificated Group, pro rata, in accordance with their
                Class Principal Amounts; provided, that any such loss allocated
                to any Class of Accrual Certificates shall be allocated (subject
                to Section 5.03(c)) on the basis of the lesser of (x) the Class
                Principal Amount thereof immediately prior to the applicable
                Distribution Date and (y) the Class Principal Amount thereof on
                the Closing Date (as reduced by any Realized Losses previously
                allocated thereto); provided, however, that any Realized Losses
                otherwise allocable to the Class 1-A1 Certificates pursuant to
                this Section 5.03 shall be allocated to the Class 1-A2
                Certificates until the Class Principal Amount of such Class has
                been reduced to zero; any Realized Losses otherwise allocable to
                the Class 4-A1 Certificates pursuant to this Section 5.03 shall
                be allocated to the Class 4-A2 Certificates until the Class
                Principal Amount of such Class has been reduced to zero and any
                Realized Losses otherwise allocable to the Class 5-A1
                Certificates pursuant to this Section 5.03 shall be allocated to
                the Class 5-A2 Certificates until the Class Principal Amount of
                such Class has been reduced to zero.

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Notwithstanding the foregoing, the first $0.47 of principal portion of Realized
Losses shall not be allocated to any Class of Certificates.

        (b)     With respect to any Distribution Date, the principal portion of
any Excess Loss in respect of a Mortgage Loan shall be allocated, pro rata, to
the Subordinate Certificates (without regard to which Mortgage Pool experienced
the loss) and the Senior Certificates of the related Certificate Group and on
the basis of the Apportioned Principal Balances of the Classes of Subordinate
Certificates and Class Principal Amounts of the Senior Certificates; provided,
that any such loss allocated to any Class of Accrual Certificates (and any
Accrual Component) shall be allocated (subject to Section 5.03(c)) on the basis
of the lesser of (x) the Class Principal Amount thereof immediately prior to the
applicable Distribution Date and (y) the Class Principal Amount thereof on the
Closing Date (as reduced by any Realized Losses previously allocated thereto).

        (c)     Any Realized Losses allocated to a Class of Certificates
pursuant to Section 5.03(a) or (b) shall be allocated among the Certificates of
such Class in proportion to their respective Certificate Principal Amounts. Any
allocation of Realized Losses pursuant to this paragraph (c) shall be
accomplished by reducing the Certificate Principal Amount of the related
Certificates on the related Distribution Date in accordance with Section
5.03(d).

        (d)     Realized Losses allocated in accordance with this Section 5.03
shall be allocated on the Distribution Date in the month following the month in
which such loss was incurred and, in the case of the principal portion thereof,
after giving effect to distributions made on such Distribution Date.

        (e)     On each Distribution Date, the Subordinate Certificate Writedown
Amount for such date shall effect a corresponding reduction in the Certificate
Principal Amount of the lowest ranking Class of outstanding Subordinate
Certificates, which reduction shall occur on such Distribution Date after giving
effect to distributions made on such Distribution Date.

        Section 5.04. Advances by the Master Servicer and the Securities
                      Administrator.

        (a)     Advances shall be made in respect of each Deposit Date as
provided herein. If, on any Determination Date, the Master Servicer determines
that any Scheduled Payments due during the related Due Period (other than
Balloon Payments) have not been received, the Master Servicer shall, or shall
cause the applicable Servicer to, advance such amount on the Master Servicer
Remittance Date immediately following such Determination Date, less an amount,
if any, to be set forth in an Officer's Certificate to be delivered to the
Trustee and the Securities Administrator on such Determination Date, which if
advanced the Master Servicer or such Servicer has determined would not be
recoverable from amounts received with respect to such Mortgage Loan, including
late payments, Liquidation Proceeds, Insurance Proceeds or otherwise. The
Securities Administrator shall be able to rely conclusively on any
non-recoverability determination made by the Master Servicer. If the Master
Servicer determines that an Advance is required, it shall on the Master Servicer
Remittance Date immediately following such Determination Date either (i) remit
to the Securities Administrator from its own funds (or funds advanced by the
applicable Servicer) for deposit in the Securities Administrator Account
immediately available funds in an amount equal to such Advance, (ii) cause to be
made an

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appropriate entry in the records of the Collection Account that funds in
such account being held for future distribution or withdrawal have been, as
permitted by this Section 5.04, used by the Master Servicer to make such
Advance, and remit such immediately available funds to the Securities
Administrator for deposit in the Certificate Account or (iii) make Advances in
the form of any combination of clauses (i) and (ii) aggregating the amount of
such Advance. Any funds being held in the Collection Account for future
distribution to Certificateholders and so used shall be replaced by the Master
Servicer from its own funds by remittance to the Securities Administrator for
deposit in the Securities Administrator Account on or before any future Master
Servicer Remittance Date to the extent that funds in the Certificate Account on
such Master Servicer Remittance Date shall be less than payments to
Certificateholders required to be made on the related Distribution Date. The
Securities Administrator shall be entitled to conclusively rely upon any
determination by the Master Servicer that an Advance, if made, would constitute
a non-recoverable advance. The Master Servicer and each Servicer shall be
entitled to be reimbursed from the Collection Account for all Advances made by
it as provided in Section 4.02.

        (b)     In the event that the Master Servicer fails for any reason to
make an Advance required to be made pursuant to Section 5.04(a) on or before the
Master Servicer Remittance Date, the Securities Administrator, solely in its
capacity as successor Master Servicer pursuant to Section 6.14, shall, on or
before the related Distribution Date, deposit in the Certificate Account an
amount equal to the excess of (a) Advances required to be made by the Master
Servicer or any Servicer that would have been deposited in such Certificate
Account over (b) the amount of any Advance made by the Master Servicer or such
Servicer with respect to such Distribution Date; provided, however, that the
Securities Administrator shall be required to make such Advance only if it is
not prohibited by law from doing so and it has determined that such Advance
would be recoverable from amounts to be received with respect to such Mortgage
Loan, including late payments, Liquidation Proceeds, Insurance Proceeds, or
otherwise. The Securities Administrator shall be entitled to be reimbursed from
the Certificate Account for Advances made by it pursuant to this Section 5.04 as
if it were the Master Servicer.

        Section 5.05. Compensating Interest Payments.

        The Master Servicer shall not be responsible for making any Compensating
Interest Payments not made by the Servicers. Any Compensating Interest Payments
made by the Servicers shall be a component of the Interest Remittance Amount.

        Section 5.06. Cap Agreement Reserve Fund.

        (a) On or prior to the Closing Date, the Securities Administrator shall
establish and maintain in its name, in trust for the benefit of the holders of
the Class B1, Class B2, Class B3, Class B4, Class B5, Class B7, Class B10, Class
B11 and Class CX Certificates, a Cap Agreement Reserve Fund. One Business Day
prior to each Distribution Date, the Cap Provider shall distribute to the
Securities Administrator, on behalf of the Trust Fund, an amount equal to one
month's interest calculated at an annual rate equal to the lesser of (i) the
respective Maximum Rate of Payment in effect of such Distribution Date and (ii)
the excess, if any, of LIBOR over the respective Strike Rate in effect for such
Distribution Date, based on a calculated notional amount equal to the lesser of
(i) the Class Principal Amount of the Class B1 and Class B2 Certificates, Class
B3 and Class B4 Certificates, Class B5, Class B7, Class B10 and Class B11
Certificates, as applicable, and

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(ii) the respective Cap Agreement Notional Amount set forth in the definition
thereof for the related Distribution Date, in each case multiplied by the actual
number of days in the applicable Accrual Period, and divided by 360.

        (b)     The Securities Administrator shall deposit amounts received
under the terms of the Cap Agreements one Business Day prior to each
Distribution Date. The Cap Agreement Reserve Fund shall be an Eligible Account,
and funds on deposit therein shall be held separate and apart from, and shall
not be commingled with, any other moneys, including, without limitation, other
moneys of the Securities Administrator held pursuant to this Agreement.

        (c)     On each Distribution Date on or prior to the Cap Agreement
Termination Date, the Securities Administrator shall distribute to the Holders
of the Class B1, Class B2 and Class CX Certificates payments received under the
terms of the Cap Agreement related to the Class B1 and Class B2 Certificates in
the order of priority and to the extent specified in Section 5.02(d) of this
Agreement. On each Distribution Date on or prior to the Cap Agreement
Termination Date, the Securities Administrator shall distribute to the Holders
of the Class B3, Class B4 and Class CX Certificates payments received under the
terms of the Cap Agreement related to the Class B3 and Class B4 Certificates in
the order of priority and to the extent specified in Section 5.02(d) of this
Agreement. On each Distribution Date on or prior to the Cap Agreement
Termination Date, the Securities Administrator shall distribute to the Holders
of the Class B5 and Class CX Certificates payments received under the terms of
the Cap Agreement related to the Class B5 Certificates in the order of priority
and to the extent specified in Section 5.02(d) of this Agreement. On each
Distribution Date on or prior to the Cap Agreement Termination Date, the
Securities Administrator shall distribute to the Holders of the Class B7 and
Class CX Certificates payments received under the terms of the Cap Agreement
related to the Class B7 Certificates in the order of priority and to the extent
specified in Section 5.02(d) of this Agreement. On each Distribution Date on or
prior to the Cap Agreement Termination Date, the Securities Administrator shall
distribute to the Holders of the Class B10 and Class CX Certificates payments
received under the terms of the Cap Agreement related to the Class B10
Certificates in the order of priority and to the extent specified in Section
5.02(d) of this Agreement. On each Distribution Date on or prior to the Cap
Agreement Termination Date, the Securities Administrator shall distribute to the
Holders of the Class B11 and Class CX Certificates payments received under the
terms of the Cap Agreement related to the Class B11 Certificates in the order of
priority and to the extent specified in Section 5.02(d) of this Agreement.

        (d)     Funds in the Cap Agreement Reserve Fund shall be invested in
Eligible Investments. The Class CX Certificate shall evidence ownership of the
Cap Agreement Reserve Fund for federal income tax purposes and Lehman Brothers
Holdings on behalf of the Holder thereof shall direct the Securities
Administrator, in writing, as to investment of amounts on deposit therein.
Lehman Brothers Holdings shall be liable for any losses incurred on such
investments. Lehman Brothers Holdings hereby directs the Securities
Administrator to invest funds on deposit in the Cap Agreement Reserve Fund in
Wells Fargo Prime Money Market Fund Investment Account or such other investment
as is hereafter specified to the Securities Administrator by Lehman Brothers
Holdings. On the Cap Agreement Termination Date, all amounts remaining in the
Cap Agreement Reserve Fund following the distribution required to be made
pursuant to paragraph (c) above will be paid to the Class CX Certificates and
the Securities Administrator shall close the Cap Agreement Reserve Fund.

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<page>

        (e)     The Cap Agreements are terminable by the Trust Fund or the Cap
Provider following the occurrence of certain specified events of default,
including failure of the Cap Provider to make required payments, and certain
standard events under the 1992 International Swaps and Derivatives Association,
Inc. Master Swap Agreement (Multi-Cross-Border).

                                   ARTICLE VI

            CONCERNING THE TRUSTEE AND THE SECURITIES ADMINISTRATOR;
                                EVENTS OF DEFAULT

        Section 6.01. Duties of Trustee and Securities Administrator.

        (a)     The Trustee, except during the continuance of an Event of
Default (of which a Responsible Officer of the Trustee shall have actual
knowledge), and the Securities Administrator undertakes to perform such duties
and only such duties as are specifically set forth in this Agreement. Any
permissive right of the Trustee or the Securities Administrator provided for in
this Agreement shall not be construed as a duty of the Trustee or the Securities
Administrator. If an Event of Default (of which a Responsible Officer of the
Trustee or the Securities Administrator shall have actual knowledge) has
occurred and has not otherwise been cured or waived, the Trustee or the
Securities Administrator shall exercise such of the rights and powers vested in
it by this Agreement and use the same degree of care and skill in their exercise
as a prudent Person would exercise or use under the circumstances in the conduct
of such Person's own affairs unless the Securities Administrator is acting as
Master Servicer, in which case it shall use the same degree of care and skill as
the Master Servicer hereunder.

        (b)     Each of the Trustee and the Securities Administrator, upon
receipt of all resolutions, certificates, statements, opinions, reports,
documents, orders or other instruments furnished to the Trustee or the
Securities Administrator which are specifically required to be furnished
pursuant to any provision of this Agreement, shall examine them to determine
whether they are in the form required by this Agreement; provided, however, that
neither the Trustee not the Securities Administrator shall be responsible for
the accuracy or content of any such resolution, certificate, statement, opinion,
report, document, order or other instrument furnished by the Master Servicer, to
the Trustee or the Securities Administrator, as applicable, pursuant to this
Agreement, and neither the Trustee nor the Securities Administrator shall be
required to recalculate or verify any numerical information furnished to the
Trustee or the Securities Administrator pursuant to this Agreement or any Cap
Agreement.

        (c)     Neither the Trustee nor the Securities Administrator shall have
any liability arising out of or in connection with this Agreement, except for
its negligence or willful misconduct. No provision of this Agreement shall be
construed to relieve the Trustee or the Securities Administrator from liability
for its own negligent action, its own negligent failure to act or its own
willful misconduct; provided, however, that:

                (i)     Neither the Trustee nor the Securities Administrator
        shall be personally liable with respect to any action taken, suffered or
        omitted to be taken by it in good faith in accordance with the consent
        or direction of Holders of Certificates as provided in Section 6.18
        hereof;

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                (ii)    For all purposes under this Agreement, the Trustee shall
        not be deemed to have notice of any Event of Default (other than
        resulting from a failure by the Master Servicer (i) to remit funds (or
        to make Advances) or (ii) to furnish information to the Trustee when
        required to do so) unless a Responsible Officer of the Trustee has
        actual knowledge thereof or unless written notice of any event which is
        in fact such a default is received by the Trustee at the Corporate Trust
        Office, and such notice references the Holders of the Certificates and
        this Agreement;

                (iii)   For all purposes under this Agreement, the Securities
        Administrator shall not be deemed to have notice of any Event of Default
        (other than resulting from a failure by the Master Servicer to remit
        funds or to furnish information to the Securities Administrator when
        required to do so) unless a Responsible Officer of the Securities
        Administrator has actual knowledge thereof or unless written notice of
        any event which is in fact such a default is received by the Securities
        Administrator at the address provided in Section 11.07, and such notice
        references the Holders of the Certificates and this Agreement; and

                (iv)    With respect to amounts that would be treated as
        "unanticipated expenses" within the meaning of Treasury Regulations
        Section 1.860G-1(b)(3)(ii) if paid or reimbursed by the REMICs
        hereunder, no provision of this Agreement shall require the Trustee or
        the Securities Administrator to expend or risk its own funds or
        otherwise incur any financial liability in the performance of any of its
        duties hereunder, or in the exercise of any of its rights or powers, if
        it shall have reasonable grounds for believing that repayment of such
        funds or adequate indemnity against such risk or liability is not
        reasonably assured to it, and none of the provisions contained in this
        Agreement shall in any event require the Trustee or the Securities
        Administrator to perform, or be responsible for the manner of
        performance of, any of the obligations of the Master Servicer under this
        Agreement except, with respect to the Securities Administrator, during
        such time, if any, as the Securities Administrator shall be the
        successor to, and be vested with the rights, duties, powers and
        privileges of, the Master Servicer in accordance with the terms of this
        Agreement.

        (d)     The Trustee shall have no duty hereunder with respect to any
complaint, claim, demand, notice or other document it may receive or which may
be alleged to have been delivered to or served upon it by the parties as a
consequence of the assignment of any Mortgage Loan hereunder; provided, however,
that the Trustee shall use its best efforts to remit to the Master Servicer upon
receipt any such complaint, claim, demand, notice or other document (i) which is
delivered to the Corporate Trust Office of the Trustee, (ii) of which a
Responsible Officer has actual knowledge, and (iii) which contains information
sufficient to permit the Trustee to make a determination that the real property
to which such document relates is a Mortgaged Property.

        (e)     Neither the Trustee or the Securities Administrator shall be
personally liable with respect to any action taken, suffered or omitted to be
taken by it in good faith in accordance with the direction of Certificateholders
of any Class holding Certificates which evidence, as to such Class, Percentage
Interests aggregating not less than 25% as to the time, method and place of
conducting any proceeding for any remedy available to the Trustee or the
Securities

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Administrator, as applicable, or exercising any trust or power conferred upon
the Trustee or the Securities Administrator, as applicable, under this
Agreement.

        (f)     Neither the Trustee nor the Securities Administrator shall be
held liable by reason of any insufficiency in any account (including without
limitation the Securities Administrator Account, the Cap Agreement Reserve Fund
and the Certificate Account) held by or on behalf of the Trustee or the
Securities Administrator resulting from any investment loss on any Eligible
Investment included therein (except to the extent that the Trustee is the
obligor and has defaulted thereon).

        (g)     Except as otherwise provided herein, neither the Trustee nor the
Securities Administrator shall have any duty (A) to see to any recording,
filing, or depositing of this Agreement or any agreement referred to herein or
any financing statement or continuation statement evidencing a security
interest, or to see to the maintenance of any such recording or filing or
depositing or to any re-recording, re-filing or re-depositing of any thereof,
(B) to see to any insurance, (C) to see to the payment or discharge of any tax,
assessment, or other governmental charge or any lien or encumbrance of any kind
owing with respect to, assessed or levied against, any part of the Trust Fund
other than from funds available in the Collection Account or the Certificate
Account, or (D) to confirm or verify the contents of any reports or certificates
of the Master Servicer delivered to the Trustee or the Securities Administrator
pursuant to this Agreement believed by the Trustee or the Securities
Administrator, as applicable, to be genuine and to have been signed or presented
by the proper party or parties.

        (h)     Neither the Securities Administrator nor the Trustee shall be
liable in its individual capacity for an error of judgment made in good faith by
a Responsible Officer or other officers of the Trustee or the Securities
Administrator, as applicable, unless it shall be proved that the Trustee or the
Securities Administrator, as applicable, was negligent in ascertaining the
pertinent facts.

        (i)     Notwithstanding anything in this Agreement to the contrary,
neither the Securities Administrator nor the Trustee shall be liable for
special, indirect or consequential losses or damages of any kind whatsoever
(including, but not limited to, lost profits), even if the Trustee or the
Securities Administrator , as applicable, has been advised of the likelihood of
such loss or damage and regardless of the form of action.

        (j)     Neither the Securities Administrator nor the Trustee shall be
responsible for the acts or omissions of the other or any Servicer, Custodian or
the Master Servicer, it being understood that this Agreement shall not be
construed to render any of them agents of one another.

        Section 6.02. Certain Matters Affecting the Trustee and the Securities
                      Administrator.

        Except as otherwise provided in Section 6.01:

                (i)     Each of the Trustee and the Securities Administrator may
        request, and may rely and shall be protected in acting or refraining
        from acting upon any resolution, Officer's Certificate, certificate of
        auditors, Opinion of Counsel or any other certificate, statement,
        instrument, opinion, report, notice, request, consent, order, approval,
        bond or

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        other paper or document believed by it to be genuine and to have been
        signed or presented by the proper party or parties;

                (ii)    Each of the Trustee and the Securities Administrator may
        consult with counsel and any advice of its counsel or Opinion of Counsel
        shall be full and complete authorization and protection in respect of
        any action taken or suffered or omitted by it hereunder in good faith
        and in accordance with such advice or Opinion of Counsel;

                (iii)   Neither the Trustee nor the Securities Administrator
        shall be personally liable for any action taken, suffered or omitted by
        it in good faith and reasonably believed by it to be authorized or
        within the discretion or rights or powers conferred upon it by this
        Agreement;

                (iv)    Unless an Event of Default shall have occurred and be
        continuing, neither the Trustee nor the Securities Administrator shall
        be bound to make any investigation into the facts or matters stated in
        any resolution, certificate, statement, instrument, opinion, report,
        notice, request, consent, order, approval, bond or other paper or
        document (provided the same appears regular on its face), unless
        requested in writing to do so by Holders of at least a majority in Class
        Principal Amount (or Class Notional Amount) of each Class of
        Certificates; provided, however, that, if the payment within a
        reasonable time to the Trustee or the Securities Administrator, as
        applicable, of the costs, expenses or liabilities likely to be incurred
        by it in the making of such investigation is, in the opinion of the
        Trustee, not reasonably assured to the Trustee by the security afforded
        to it by the terms of this Agreement, the Trustee or the Securities
        Administrator, as applicable, may require reasonable indemnity against
        such expense or liability or payment of such estimated expenses as a
        condition to proceeding. The reasonable expense thereof shall be paid by
        the Holders requesting such investigation;

                (v)     Each of the Trustee and the Securities Administrator may
        execute any of the trusts or powers hereunder or perform any duties
        hereunder either directly or by or through agents, custodians, or
        attorneys, which agents, custodians or attorneys shall have any and all
        of the rights, powers, duties and obligations of the Trustee and the
        Securities Administrator, respectively, conferred on them by such
        appointment provided that each of the Trustee and the Securities
        Administrator shall continue to be responsible for its duties and
        obligations hereunder to the extent provided herein, and provided
        further that neither the Trustee nor the Securities Administrator shall
        be responsible for any misconduct or negligence on the part of any such
        agent or attorney appointed with due care by the Trustee or the
        Securities Administrator, as applicable;

                (vi)    Neither the Trustee nor the Securities Administrator
        shall be under any obligation to exercise any of the trusts or powers
        vested in it by this Agreement or to institute, conduct or defend any
        litigation hereunder or in relation hereto, in each case at the request,
        order or direction of any of the Certificateholders pursuant to the
        provisions of this Agreement, unless such Certificateholders shall have
        offered to the Trustee or the Securities Administrator, as applicable,
        reasonable security or indemnity against the costs, expenses and
        liabilities which may be incurred therein or thereby;

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                (vii)   The right of the Trustee and the Securities
        Administrator to perform any discretionary act enumerated in this
        Agreement shall not be construed as a duty, and neither the Trustee nor
        the Securities Administrator shall be answerable for other than its
        negligence or willful misconduct in the performance of such act; and

                (viii)  Neither the Trustee nor the Securities Administrator
        shall be required to give any bond or surety in respect of the execution
        of the Trust Fund created hereby or the powers granted hereunder.

        Section 6.03. Trustee and Securities Administrator Not Liable for
                      Certificates.

        The Trustee and the Securities Administrator make no representations as
to the validity or sufficiency of this Agreement, the Cap Agreements or any
Custodial Agreement, of the Certificates (other than the certificate of
authentication on the Certificates), or of any Mortgage Loan or Servicing
Agreement, or related document save that the Trustee and the Securities
Administrator each represent that, assuming due execution and delivery by the
other parties hereto, this Agreement has been duly authorized, executed and
delivered by it and constitutes its valid and binding obligation, enforceable
against it in accordance with its terms except that such enforceability may be
subject to (A) applicable bankruptcy and insolvency laws and other similar laws
affecting the enforcement of the rights of creditors generally, and (B) general
principles of equity regardless of whether such enforcement is considered in a
proceeding in equity or at law. Neither the Trustee nor the Securities
Administrator shall be accountable for the use or application by the Depositor
of funds paid to the Depositor in consideration of the assignment of the
Mortgage Loans to the Trust Fund by the Depositor or for the use or application
of any funds deposited into the Collection Account, the Certificate Account, any
Escrow Account or any other fund or account maintained with respect to the
Certificates. Neither the Trustee nor the Securities Administrator shall be
responsible for the legality or validity of this Agreement, the Cap Agreements,
the Custodial Agreements or the Servicing Agreements or the validity, priority,
perfection or sufficiency of the security for the Certificates issued or
intended to be issued hereunder. Except as otherwise provided herein, neither
the Trustee nor the Securities Administrator shall have any responsibility for
filing any financing or continuation statement in any public office at any time
or to otherwise perfect or maintain the perfection of any security interest or
lien granted to it hereunder or to record this Agreement.

        Section 6.04. Trustee and Securities Administrator May Own Certificates.

        The Trustee, the Securities Administrator and any Affiliate or agent of
the Trustee or Securities Administrator in its individual or any other capacity
may become the owner or pledgee of Certificates and may transact banking and
trust with the other parties hereto with the same rights it would have if it
were not Trustee, Securities Administrator or such agent.

        Section 6.05. Eligibility Requirements for Trustee and Securities
                      Administrator.

        Each of the Trustee and the Securities Administrator hereunder shall at
all times be (i) an institution insured by the FDIC and (ii) a corporation or
national banking association, organized and doing business under the laws of any
State or the United States of America, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of not less

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than $50,000,000 and subject to supervision or examination by federal or state
authority. If such corporation or national banking association publishes reports
of condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then, for the purposes of this
Section, the combined capital and surplus of such corporation or national
banking association shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. In case at any
time either the Trustee or the Securities Administrator shall cease to be
eligible in accordance with provisions of this Section, the Trustee or the
Securities Administrator, as applicable, shall resign immediately in the manner
and with the effect specified in Section 6.06.

        Section 6.06. Resignation and Removal of Trustee and Securities
                      Administrator.

        (a)     Each of the Trustee and the Securities Administrator may at any
time resign and be discharged from the trust hereby created by giving written
notice thereof to the Trustee or the Securities Administrator, as applicable,
the Depositor and the Master Servicer. Upon receiving such notice of
resignation, the Depositor will promptly appoint a successor trustee or
successor Securities Administrator, as applicable, by written instrument, one
copy of which instrument shall be delivered to the resigning Trustee or
resigning Securities Administrator, as applicable, one copy to the successor
trustee or to the successor securities administrator, as applicable, one copy to
the Master Servicer. If no successor trustee or successor securities
administrator, as applicable shall have been so appointed and shall have
accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Trustee or resigning Securities Administrator, as
applicable, may petition any court of competent jurisdiction for the appointment
of a successor trustee.

        (b)     If at any time (i) either the Trustee or the Securities
Administrator shall cease to be eligible in accordance with the provisions of
Section 6.05 and shall fail to resign after written request therefor by the
Depositor, (ii) the Trustee or the Securities Administrator shall become
incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver
of the Trustee or the Securities Administrator or of either of their property
shall be appointed, or any public officer shall take charge or control of the
Trustee or the Securities Administrator or of either of their property or
affairs for the purpose of rehabilitation, conservation or liquidation, (iii) a
tax is imposed or threatened with respect to the Trust Fund by any state in
which the Trustee or the Trust Fund held by the Trustee is located, or (iv) the
continued use of the Trustee or the Securities Administrator would result in a
downgrading of the rating by the Rating Agencies of any Class of Certificates
with a rating, then the Depositor shall remove the Trustee or the Securities
Administrator, as applicable, and appoint a successor trustee or successor
securities administrator, as applicable, by written instrument, one copy of
which instrument shall be delivered to the Trustee or the Securities
Administrator, as applicable, so removed, one copy to the successor trustee or
the successor securities administrator, as applicable, and one copy to the
Master Servicer.

        (c)     The Holders of more than 50% of the Class Principal Amount (or
Class Notional Amount) of each Class of Certificates may at any time upon 30
days' written notice to the Trustee, the Securities Administrator and the
Depositor remove the Trustee or the Securities Administrator by such written
instrument, signed by such Holders or their attorney-in-fact duly authorized,
one copy of which instrument shall be delivered to the Depositor, one copy to
the

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Trustee or Securities Administrator, as applicable, so removed and one copy
to the Master Servicer; the Depositor shall thereupon use its best efforts to
appoint a mutually acceptable successor trustee or successor securities
administrator, as applicable, in accordance with this Section.

        (d)     Any resignation or removal of the Trustee or Securities
Administrator and appointment of a successor trustee or successor securities
administrator pursuant to any of the provisions of this Section shall become
effective upon acceptance of appointment by the successor trustee or successor
securities administrator, as applicable, as provided in Section 6.07.

        Section 6.07. Successor Trustee and Successor Securities Administrator.

        (a)     Any successor trustee or successor securities administrator
appointed as provided in Section 6.06 shall execute, acknowledge and deliver to
the Depositor, the Master Servicer and to its predecessor trustee or predecessor
securities administrator, as applicable, an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee or predecessor securities administrator, as applicable,
shall become effective and such successor trustee or successor securities
administrator, as applicable, without any further act, deed or conveyance, shall
become fully vested with all the rights, powers, duties and obligations of its
predecessor hereunder, with like effect as if originally named as trustee or
securities administrator, as applicable, herein. The predecessor trustee or
predecessor securities administrator, as applicable shall deliver to the
successor trustee (or assign to the successor trustee its interest under each
Custodial Agreement, to the extent permitted thereunder) or predecessor
securities administrator, as applicable, all Mortgage Files and documents and
statements related to each Mortgage Files held by it hereunder, and shall duly
assign, transfer, deliver and pay over to the successor trustee the entire Trust
Fund, together with all necessary instruments of transfer and assignment or
other documents properly executed necessary to effect such transfer and such of
the record or copies thereof maintained by the predecessor trustee in the
administration hereof as may be requested by the successor trustee and shall
thereupon be discharged from all duties and responsibilities under this
Agreement. In addition, the Master Servicer and the predecessor trustee or
predecessor securities administrator, as applicable, shall execute and deliver
such other instruments and do such other things as may reasonably be required to
more fully and certainly vest and confirm in the successor trustee or securities
administrator, as applicable all such rights, powers, duties and obligations.

        (b)     No successor trustee or securities administrator, as applicable,
shall accept appointment as provided in this Section unless at the time of such
appointment such successor trustee or securities administrator, as applicable,
shall be eligible under the provisions of Section 6.05.

        (c)     Upon acceptance of appointment by a successor trustee or
successor securities administrator, as applicable, as provided in this Section,
the Master Servicer shall mail notice of the succession of such trustee or
securities administrator, as applicable and to all Holders of Certificates at
their addresses as shown in the Certificate Register and to the Rating Agencies.
The expenses of such mailing shall be borne by the predecessor trustee.

        Section 6.08. Merger or Consolidation of Trustee or Securities
                      Administrator.

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        Any Person into which the Trustee or Securities Administrator may be
merged or with which it may be consolidated, or any Person resulting from any
merger, conversion or consolidation to which the Trustee or Securities
Administrator shall be a party, or any Persons succeeding to the business of the
Trustee or the Securities Administrator, shall be the successor to the Trustee
or the Securities Administrator hereunder, without the execution or filing of
any paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding, provided that such Person shall be
eligible under the provisions of Section 6.05.

        Section 6.09. Appointment of Co-Trustee, Separate Trustee or Custodian.

        (a)     Notwithstanding any other provisions hereof, at any time, the
Trustee, the Depositor or the Certificateholders evidencing more than 50% of the
Class Principal Amount (or Class Notional Amount) of each Class of Certificates
shall each have the power from time to time to appoint one or more Persons to
act either as co-trustees jointly with the Trustee, or as separate trustees, or
as custodians, for the purpose of holding title to, foreclosing or otherwise
taking action with respect to any Mortgage Loan outside the state where the
Trustee has its principal place of business where such separate trustee or
co-trustee is necessary or advisable (or the Trustee has been advised by the
Master Servicer that such separate trustee or co-trustee is necessary or
advisable) under the laws of any state in which a property securing a Mortgage
Loan is located or for the purpose of otherwise conforming to any legal
requirement, restriction or condition in any state in which a property securing
a Mortgage Loan is located or in any state in which any portion of the Trust
Fund is located. The separate trustees, co-trustees, or custodians so appointed
shall be trustees or custodians for the benefit of all the Certificateholders
and shall have such powers, rights and remedies as shall be specified in the
instrument of appointment; provided, however, that no such appointment shall, or
shall be deemed to, constitute the appointee an agent of the Trustee. The
obligation of the Trustee to make Advances pursuant to Section 5.04 and 6.14
hereof shall not be affected or assigned by the appointment of a co-trustee.

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

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

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

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

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                (iv)    the Trustee or the Certificateholders evidencing more
        than 50% of the Aggregate Voting Interests of the Certificates may at
        any time accept the resignation of or remove any separate trustee,
        co-trustee or custodian, so appointed by it or them, if such resignation
        or removal does not violate the other terms of this Agreement.

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

        (d)     Any separate trustee, co-trustee or custodian may, at any time,
constitute the Trustee its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by law, to do any lawful act under or in
respect of this Agreement on its behalf and in its name. The Trustee shall not
be responsible for any action or inaction of any separate trustee, co-trustee or
custodian. If any separate trustee, co-trustee or custodian shall die, become
incapable of acting, resign or be removed, all of its estates, properties,
rights, remedies and trusts shall vest in and be exercised by the Trustee, to
the extent permitted by law, without the appointment of a new or successor
trustee.

        (e)     No separate trustee, co-trustee or custodian hereunder shall be
required to meet the terms of eligibility as a successor trustee under Section
6.05 hereunder and no notice to Certificateholders of the appointment shall be
required under Section 6.07 hereof.

        (f)     The Trustee agrees to instruct the co-trustees, if any, to the
extent necessary to fulfill the Trustee's obligations hereunder.

        (g)     The Trust Fund shall pay the reasonable compensation of the
co-trustees to the extent, and in accordance with the standards, specified in
Section 6.12 hereof (which compensation shall not reduce any compensation
payable to the Trustee under such Section).

        Section 6.10. Authenticating Agents.

        (a)     The Trustee may appoint one or more Authenticating Agents which
shall be authorized to act on behalf of the Trustee in authenticating
Certificates. The Trustee hereby appoints the Securities Administrator to act as
the initial Authenticating Agent, and the Securities Administrator hereby
accepts such appointment. Wherever reference is made in this Agreement to the
authentication of Certificates by the Trustee or the Trustee's certificate of
authentication, such reference shall be deemed to include authentication on
behalf of the Trustee by an Authenticating Agent and a certificate of
authentication executed on behalf of the Trustee by an Authenticating Agent.
Each Authenticating Agent must be a corporation organized and doing business
under the laws of the United States of America or of any state, having a
combined

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capital and surplus of at least $15,000,000, authorized under such laws to do a
trust business and subject to supervision or examination by federal or state
authorities.

        (b)     Any Person into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any Person resulting from any
merger, conversion or consolidation to which any Authenticating Agent shall be a
party, or any Person succeeding to the corporate agency business of any
Authenticating Agent, shall continue to be the Authenticating Agent without the
execution or filing of any paper or any further act on the part of the Trustee
or the Authenticating Agent.

        (c)     Any Authenticating Agent may at any time resign by giving at
least 30 days' advance written notice of resignation to the Trustee and the
Depositor. The Trustee may at any time terminate the agency of any
Authenticating Agent by giving written notice of termination to such
Authenticating Agent and the Depositor. Upon receiving a notice of resignation
or upon such a termination, or in case at any time any Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section
6.10, the Trustee may appoint a successor Authenticating Agent, shall give
written notice of such appointment to the Depositor and shall mail notice of
such appointment to all Holders of Certificates. Any successor Authenticating
Agent upon acceptance of its appointment hereunder shall become vested with all
the rights, powers, duties and responsibilities of its predecessor hereunder,
with like effect as if originally named as Authenticating Agent. No successor
Authenticating Agent shall be appointed unless eligible under the provisions of
this Section 6.10. No Authenticating Agent shall have responsibility or
liability for any action taken by it as such at the direction of the Trustee.
Any Authenticating Agent shall be entitled to reasonable compensation for its
services and, if paid by the Trustee, it shall be a reimbursable expense to the
extent provided in Section 6.12.

        Section 6.11. Indemnification of Trustee and Securities Administrator.

        The Trustee and the Securities Administrator and their respective
directors, officers, employees and agents shall be entitled to indemnification
from the Trust Fund for any loss, liability or expense incurred in connection
with any legal proceeding or incurred without negligence or willful misconduct
on their part, arising out of, or in connection with, the acceptance or
administration of the trusts created hereunder or in connection with the
performance of their duties hereunder or under the Certificates, any Cap
Agreement, the Mortgage Loan Sale Agreement, any Custodial Agreement or any
Servicing Agreement, including any applicable fees and expenses payable pursuant
to Section 6.12 and the costs and expenses of defending themselves against any
claim in connection with the exercise or performance of any of their powers or
duties hereunder, provided that:

                (i)     with respect to any such claim, the Trustee or the
        Securities Administrator, as applicable, shall have given the Depositor,
        the Master Servicer and the Holders written notice thereof promptly
        after the Trustee or the Securities Administrator, as applicable, shall
        have knowledge thereof; provided that failure to so notify shall not
        relieve the Trust Fund of the obligation to indemnify the Trustee or the
        Securities Administrator;

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                (ii)    while maintaining control over its own defense, the
        Trustee or the Securities Administrator, as applicable, shall cooperate
        and consult fully with the Depositor in preparing such defense; and

                (iii)   notwithstanding anything to the contrary in this Section
        6.11, the Trust Fund shall not be liable for settlement of any such
        claim by the Trustee or the Securities Administrator, as applicable,
        entered into without the prior consent of the Depositor, which consent
        shall not be unreasonably withheld; and

                (iv)    any such loss, liability or expense indemnified by the
        Trust Fund must constitute an "unanticipated expense" within the meaning
        of Treasury Regulations Section 1.860G-1(b)(3)(ii).

        The provisions of this Section 6.11 shall survive any termination of
this Agreement and the resignation or removal of the Trustee or the Securities
Administrator, as applicable, and shall be construed to include, but not be
limited to any loss, liability or expense under any environmental law.

        Section 6.12. Fees and Expenses of Securities Administrator, Trustee and
                      Custodian.

        The Securities Administrator shall be entitled to (a) the Securities
Administrator Fee, and is authorized to pay itself the amount of income or gain
earned from investment of funds in the Securities Administrator Account and (b)
reimbursement of all reasonable expenses, disbursements and advancements
incurred or made by the Securities Administrator in accordance with this
Agreement (including fees and expenses of its counsel and all persons not
regularly in its employment), except any such expenses, disbursements and
advancements that either (i) arise from its negligence, bad faith or willful
misconduct or (ii) do not constitute "unanticipated expenses" within the meaning
of Treasury Regulations Section 1.860G-1(b)(3)(ii). The Trustee shall be
compensated as separately agreed with the Securities Administrator. The
Custodian shall be compensated as separately agreed with the Depositor.

        Section 6.13. Collection of Monies.

        Except as otherwise expressly provided in this Agreement, the Trustee
may demand payment or delivery of, and shall receive and collect, all money and
other property payable to or receivable by the Trustee pursuant to this
Agreement. The Trustee shall hold all such money and property received by it as
part of the Trust Fund and shall distribute it as provided in this Agreement. If
the Trustee shall not have timely received amounts to be remitted with respect
to the Mortgage Loans from the Master Servicer, the Trustee shall request the
Master Servicer to make such distribution as promptly as practicable or legally
permitted. If the Trustee shall subsequently receive any such amount, it may
withdraw such request.

        Section 6.14. Events of Default; Securities Administrator To Act;
                      Appointment of Successor.

        (a)     The occurrence of any one or more of the following events shall
constitute an "Event of Default":

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                (i)     Any failure by the Master Servicer to furnish the
        Securities Administrator the Mortgage Loan data sufficient to prepare
        the reports described in Section 4.03(a) which continues unremedied for
        a period of two (2) Business Days after the date upon which written
        notice of such failure shall have been given to such Master Servicer by
        the Trustee or the Securities Administrator or to such Master Servicer,
        the Securities Administrator and the Trustee by the Holders of not less
        than 25% of the Class Principal Amount (or Class Notional Amount) of
        each Class of Certificates affected thereby; or

                (ii)    Any failure on the part of the Master Servicer duly to

        observe or perform in any material respect any other of the covenants or
        agreements on the part of such Master Servicer contained in this
        Agreement which continues unremedied for a period of 30 days (or 15
        days, in the case of a failure to maintain any Insurance Policy required
        to be maintained pursuant to this Agreement) after the date on which
        written notice of such failure, requiring the same to be remedied, shall
        have been given to such Master Servicer by the Trustee, or to such
        Master Servicer and the Trustee by the Holders of not less than 25% of
        the Class Principal Amount (or Class Notional Amount) of each Class of
        Certificates affected thereby; or

                (iii)   A decree or order of a court or agency or supervisory
        authority having jurisdiction for the appointment of a conservator or
        receiver or liquidator in any insolvency, readjustment of debt,
        marshalling of assets and liabilities or similar proceedings, or for the
        winding-up or liquidation of its affairs, shall have been entered
        against the Master Servicer, and such decree or order shall have
        remained in force undischarged or unstayed for a period of 60 days or
        any Rating Agency reduces or withdraws or threatens to reduce or
        withdraw the rating of the Certificates because of the financial
        condition or loan servicing capability of such Master Servicer; or

                (iv)    The Master Servicer shall consent to the appointment of
        a conservator or receiver or liquidator in any insolvency, readjustment
        of debt, marshalling of assets and liabilities, voluntary liquidation or
        similar proceedings of or relating to such Master Servicer or of or
        relating to all or substantially all of its property; or

                (v)     The Master Servicer shall admit in writing its inability
        to pay its debts generally as they become due, file a petition to take
        advantage of any applicable insolvency or reorganization statute, make
        an assignment for the benefit of its creditors or voluntarily suspend
        payment of its obligations; or

                (vi)    The Master Servicer shall be dissolved, or shall dispose
        of all or substantially all of its assets, or consolidate with or merge
        into another entity or shall permit another entity to consolidate or
        merge into it, such that the resulting entity does not meet the criteria
        for a successor servicer as specified in Section 9.27 hereof; or

                (vii)   If a representation or warranty set forth in Section
        9.14 hereof shall prove to be incorrect as of the time made in any
        respect that materially and adversely affects the interests of the
        Certificateholders, and the circumstance or condition in respect of
        which such representation or

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        warranty was incorrect shall not have been eliminated or cured within 60
        days after the date on which written notice of such incorrect
        representation or warranty shall have been given to the Master Servicer
        by the Trustee or to the Master Servicer and the Trustee by the Holders
        of not less than 25% of the Aggregate Certificate Principal Amount of
        each Class of Certificates; or

                (viii)  A sale or pledge of the any of the rights of the Master
        Servicer hereunder or an assignment of this Agreement by the Master
        Servicer or a delegation of the rights or duties of the Master Servicer
        hereunder shall have occurred in any manner not otherwise permitted
        hereunder and without the prior written consent of the Trustee and
        Certificateholders holding more than 50% of the Class Principal Amount
        (or Class Notional Amount) of each Class of Certificates; or

                (ix)    The Master Servicer has notice or actual knowledge that
        any Servicer at any time is not either an FNMA- or FHLMC-approved
        Seller/Servicer, and the Master Servicer has not terminated the rights
        and obligations of such Servicer under the applicable Servicing
        Agreement and replaced such Servicer with an FNMA- or FHLMC-approved
        servicer within 60 days of the date the Master Servicer receives such
        notice or actual knowledge; or

                (x)     Any failure of the Master Servicer to remit to the
        Securities Administrator any payment required to be made to the
        Securities Administrator for the benefit of Certificateholders under the
        terms of this Agreement, including any Advance, on any Master Servicer
        Remittance Date, which such failure continues unremedied after 1:00 p.m.
        Eastern Standard Time one Business Day after the date upon which notice
        of such failure shall have been given to the Master Servicer and the
        Trustee by the Securities Administrator.

        If an Event of Default described in clauses (i) through (ix) of this
Section 6.14 shall occur, then, in each and every case, subject to applicable
law, so long as any such Event of Default shall not have been remedied within
any period of time prescribed by this Section 6.14, the Trustee, by notice in
writing to the Master Servicer may, and shall, if so directed by
Certificateholders evidencing more than 50% of the Class Principal Amount (or
Class Notional Amount) of each Class of Certificates, terminate all of the
rights and obligations of the Master Servicer hereunder and in and to the
Mortgage Loans and the proceeds thereof. If an Event of Default described in
clause (x) of this Section 6.14 shall occur, then, in each and every case,
subject to applicable law, so long as such Event of Default shall not have been
remedied within the time period prescribed by clause (x) of this Section 6.14,
the Trustee, by notice in writing to the Master Servicer, shall promptly
terminate all of the rights and obligations of the Master Servicer hereunder and
in and to the Mortgage Loans and the proceeds thereof. On or after the receipt
by the Master Servicer of such written notice, all authority and power of the
Master Servicer, and only in its capacity as Master Servicer under this
Agreement, whether with respect to the Mortgage Loans or otherwise, shall pass
to and be vested in the Securities Administrator and upon receipt of written
notice by the Securities Administrator from the Trustee pursuant to and under
the terms of this Agreement; and the Securities Administrator is hereby
authorized and empowered to execute and deliver, on behalf of the defaulting
Master Servicer as attorney-in-fact or otherwise, any and all documents and
other instruments, and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to
complete the transfer and endorsement or assignment of the Mortgage Loans and
related

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documents or otherwise. The defaulting Master Servicer agrees to cooperate with
the Trustee and the Securities Administrator in effecting the termination of the
defaulting Master Servicer's responsibilities and rights hereunder as Master
Servicer including, without limitation, notifying Servicers of the assignment of
the master servicing function and providing the Securities Administrator or its
designee all documents and records in electronic or other form reasonably
requested by it to enable the Securities Administrator or its designee to assume
the defaulting Master Servicer's functions hereunder and the transfer to the
Securities Administrator for administration by it of all amounts which shall at
the time be or should have been deposited by the defaulting Master Servicer in
the Collection Account maintained by such defaulting Master Servicer and any
other account or fund maintained with respect to the Certificates or thereafter
received with respect to the Mortgage Loans. The Master Servicer being
terminated shall bear all costs of a master servicing transfer, including but
not limited to those of the Trustee and Securities Administrator reasonably
allocable to specific employees and overhead, legal fees and expenses,
accounting and financial consulting fees and expenses, and costs of amending the
Agreement, if necessary. The Securities Administrator shall be entitled to be
reimbursed from the Master Servicer (or by the Trust, if the Master Servicer is
unable to fulfill its obligations hereunder) for all costs associated with the
transfer of servicing from the predecessor Master Servicer, including, without
limitation, any costs or expenses associated with the complete transfer of all
servicing data and the completion, correction or manipulation of such servicing
data as may be required by the Securities Administrator to correct any errors or
insufficiencies in the servicing data or otherwise to enable the Securities
Administrator to master service the Mortgage Loans properly and effectively. If
the terminated Master Servicer does not pay such reimbursement within thirty
(30) days of its receipt of an invoice therefor, such reimbursement shall be an
expense of the Trust and the Securities Administrator shall be entitled to
withdraw such reimbursement from amounts on deposit in the Certificate Account
pursuant to Section 4.04; provided that the terminated Master Servicer shall
reimburse the Trust for any such expense incurred by the Trust; and provided,
further, that the Trustee shall decide whether and to what extent it is in the
best interest of the Certificateholders to pursue any remedy against any party
obligated to make such reimbursement.

        Notwithstanding the termination of its activities as Master Servicer,
each terminated Master Servicer shall continue to be entitled to reimbursement
to the extent provided in Section 4.02(i), (ii), (iii), (iv), (v), (vi), (vii),
(ix) and (xi) to the extent such reimbursement relates to the period prior to
such Master Servicer's termination.

        If any Event of Default shall occur of which a Responsible Officer of
the Trustee has actual knowledge, the Trustee, upon becoming aware of the
occurrence thereof through the proper execution of its duties under this
Agreement, shall promptly notify the Securities Administrator and the Rating
Agencies of the nature and extent of such Event of Default. The Trustee or the
Securities Administrator shall immediately give written notice to the Master
Servicer upon such Master Servicer's failure to remit funds on the Master
Servicer Remittance Date.

        (b)     On and after the time the Master Servicer receives a notice of
termination from the Trustee pursuant to Section 6.14(a) or the Trustee receives
the resignation of the Master Servicer evidenced by an Opinion of Counsel
pursuant to Section 9.28 and within a period of time not to exceed 90 days after
the Securities Administrator receives written notice from the

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Trustee pursuant to Section 6.14(a) or Section 9.28, the Securities
Administrator, unless another master servicer shall have been appointed, shall
be the successor in all respects to the Master Servicer in its capacity as such
under this Agreement and the transactions set forth or provided for herein and
shall have all the rights and powers and be subject to all the responsibilities,
duties and liabilities relating thereto and arising thereafter placed on the
Master Servicer hereunder, including the obligation to make Advances; provided,
however, that any failure to perform such duties or responsibilities caused by
the Master Servicer's or the Trustee's failure to provide information required
by this Agreement shall not be considered a default by the Securities
Administrator hereunder. In addition, the Securities Administrator shall have no
responsibility for any act or omission of the Master Servicer prior to the
issuance of any notice of termination and within a period of time not to exceed
90 days after the Securities Administrator receives written notice from the
Trustee pursuant to Section 6.14(a) or Section 9.28, as applicable. The
Securities Administrator shall have no liability relating to the representations
and warranties of the Master Servicer set forth in Section 9.14. In the
Securities Administrator's capacity as such successor, the Securities
Administrator shall have the same limitations on liability herein granted to the
Master Servicer. As compensation therefor, the Securities Administrator shall be
entitled to receive all compensation payable to the Master Servicer under this
Agreement, including the Master Servicing Fee. The Securities Administrator
shall be entitled to be reimbursed from the Master Servicer (or by the Trust
Fund if the Master Servicer is unable to fulfill its obligations hereunder) for
all costs associated with the transfer of master servicing from the predecessor
master servicer, including, without limitation, any costs or expenses associated
with the complete transfer of all master servicing data and the completion,
correction or manipulation of such master servicing data as may be required by
the Securities Administrator to correct any errors or insufficiencies in the
master servicing data or otherwise to enable the Securities Administrator to
master service the Mortgage Loans properly and effectively.

        (c)     Notwithstanding the above, the Securities Administrator may, if
it shall be unwilling to continue to so act, or shall, if it is unable to so
act, request the Trustee to appoint, petition a court of competent jurisdiction
to appoint, or appoint on its own behalf any established housing and home
finance institution servicer, master servicer, servicing or mortgage servicing
institution having a net worth of not less than $15,000,000 and meeting such
other standards for a successor master servicer as are set forth in this
Agreement, as the successor to such Master Servicer in the assumption of all of
the responsibilities, duties or liabilities of a master servicer, like the
Master Servicer. Any entity designated by the Trustee or the Securities
Administrator as a successor master servicer may be an Affiliate of the Trustee
or the Securities Administrator; provided, however, that, unless such Affiliate
meets the net worth requirements and other standards set forth herein for a
successor master servicer, the Trustee or the Securities Administrator, in its
individual capacity shall agree, at the time of such designation, to be and
remain liable to the Trust Fund for such Affiliate's actions and omissions in
performing its duties hereunder. In connection with such appointment and
assumption, the Trustee or the Securities Administrator may make such
arrangements for the compensation of such successor out of payments on Mortgage
Loans as it and such successor shall agree; provided, however, that no such
compensation shall be in excess of that permitted to the Master Servicer
hereunder. The Trustee, the Securities Administrator and such successor shall
take such actions, consistent with this Agreement, as shall be necessary to
effectuate any such succession and may make other arrangements with respect to
the servicing to be conducted hereunder which are not inconsistent herewith. The
Master Servicer shall cooperate with the Trustee, the Securities Administrator
and

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any successor master servicer in effecting the termination of the Master
Servicer's responsibilities and rights hereunder including, without limitation,
notifying Mortgagors of the assignment of the master servicing functions and
providing the Securities Administrator and successor master servicer, as
applicable, all documents and records in electronic or other form reasonably
requested by it to enable it to assume the Master Servicer's functions hereunder
and the transfer to the Trustee, the Securities Administrator or such successor
master servicer, as applicable, all amounts which shall at the time be or should
have been deposited by the Master Servicer in the Collection Account and any
other account or fund maintained with respect to the Certificates or thereafter
be received with respect to the Mortgage Loans. Neither the Trustee, the
Securities Administrator nor any other successor master servicer shall be deemed
to be in default hereunder by reason of any failure to make, or any delay in
making, any distribution hereunder or any portion thereof caused by (i) the
failure of the Master Servicer to deliver, or any delay in delivering, cash,
documents or records to it, (ii) the failure of the Master Servicer to cooperate
as required by this Agreement, (iii) the failure of the Master Servicer to
deliver the Mortgage Loan data to the Securities Administrator as required by
this Agreement or (iv) restrictions imposed by any regulatory authority having
jurisdiction over the Master Servicer. Neither the Securities Administrator nor
any other successor master servicer shall be deemed to be in default hereunder
by reason of any failure to make, or any delay in making, any distribution
hereunder or any portion thereof caused by (i) the failure of the terminated
Master Servicer to deliver, or any delay in delivering cash, documents or
records to it, or (ii) the failure of the terminated Master Servicer to
cooperate as required by this Agreement.

        Section 6.15. Additional Remedies of Trustee Upon Event of Default.

        During the continuance of any Event of Default, so long as such Event of
Default shall not have been remedied, the Trustee, in addition to the rights
specified in Section 6.14, shall have the right, in its own name and as trustee
of an express trust, to take all actions now or hereafter existing at law, in
equity or by statute to enforce its rights and remedies and to protect the
interests, and enforce the rights and remedies, of the Certificateholders
(including the institution and prosecution of all judicial, administrative and
other proceedings and the filings of proofs of claim and debt in connection
therewith). Except as otherwise expressly provided in this Agreement, no remedy
provided for by this Agreement shall be exclusive of any other remedy, and each
and every remedy shall be cumulative and in addition to any other remedy, and no
delay or omission to exercise any right or remedy shall impair any such right or
remedy or shall be deemed to be a waiver of any Event of Default.

        Section 6.16. Waiver of Defaults.

        35% or more of the Aggregate Voting Interests of Certificateholders may
waive any default or Event of Default by the Master Servicer in the performance
of its obligations hereunder, except that a default in the making of any
required deposit to the Certificate Account that would result in a failure of
the Trustee to make any required payment of principal of or interest on the
Certificates may only be waived with the consent of 100% of the affected
Certificateholders. Upon any such waiver of a past default, such default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to
have been remedied for every purpose of this Agreement. No such waiver shall
extend to any subsequent or other default or impair any right consequent thereon
except to the extent expressly so waived.

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        Section 6.17. Notification to Holders.

        Upon termination of the Master Servicer or appointment of a successor to
the Master Servicer, in each case as provided herein, the Trustee shall promptly
mail notice thereof by first class mail to the Securities Administrator and the
Certificateholders at their respective addresses appearing on the Certificate
Register. The Trustee shall also, within 45 days after the occurrence of any
Event of Default known to a Responsible Officer of the Trustee, give written
notice thereof to the Securities Administrator and the Certificateholders,
unless such Event of Default shall have been cured or waived prior to the
issuance of such notice and within such 45-day period.

        Section 6.18. Directions by Certificateholders and Duties of Trustee
                      During Event of Default.

        Subject to the provisions of Section 8.01 hereof, during the continuance
of any Event of Default, Holders of Certificates evidencing not less than 25% of
the Class Principal Amount (or Class Notional Amount) of each Class of
Certificates may direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee, under this Agreement; provided, however, that the
Trustee shall be under no obligation to pursue any such remedy, or to exercise
any of the trusts or powers vested in it by this Agreement (including, without
limitation, (i) the conducting or defending of any administrative action or
litigation hereunder or in relation hereto and (ii) the terminating of the
Master Servicer or any successor master servicer from its rights and duties as
master servicer hereunder) at the request, order or direction of any of the
Certificateholders, unless such Certificateholders shall have offered to the
Trustee reasonable security or indemnity against the cost, expenses and
liabilities which may be incurred therein or thereby; and, provided further,
that, subject to the provisions of Section 8.01, the Trustee shall have the
right to decline to follow any such direction if the Trustee, in accordance with
an Opinion of Counsel, determines that the action or proceeding so directed may
not lawfully be taken or if the Trustee in good faith determines that the action
or proceeding so directed would involve it in personal liability or be unjustly
prejudicial to the non-assenting Certificateholders.

        Section 6.19. Action Upon Certain Failures of the Master Servicer and
                      Upon Event of Default.

        In the event that a Responsible Officer of the Trustee shall have actual
knowledge of any action or inaction of the Master Servicer that would become an
Event of Default upon the Master Servicer's failure to remedy the same after
notice, the Trustee shall give notice thereof to the Master Servicer. For all
purposes of this Agreement, in the absence of actual knowledge by a Responsible
Officer of the Trustee, the Trustee shall not be deemed to have knowledge of any
failure of the Master Servicer or any other Event of Default unless notified in
writing by the Depositor, the Securities Administrator, the Master Servicer or a
Certificateholder.

        Section 6.20. Preparation of Tax Returns and Other Reports.

        (a)     The Depositor shall prepare or cause to be prepared the initial
current report on Form 8-K. Thereafter, within 10 days (or, if applicable,
within such shorter period of time as is

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required under the rules of the U.S. Securities and Exchange Commission (the
"Commission") as in effect from time to time (the "Rules")) following each
Distribution Date, the Securities Administrator shall, in accordance with
industry standards and the Rules, prepare and file with the Commission via the
Electronic Data Gathering and Retrieval System (EDGAR), a Form 8-K (or such
other form as is prescribed by the Rules) that includes (i) a copy of the
statement to the Certificateholders for such Distribution Date and (ii) such
other information as is required by the Rules and available to the Securities
Administrator in a format compatible with Edgar filing requirements. Prior to
January 30 in the first year, unless it has received prior instructions from the
Depositor not to do so, the Securities Administrator shall, in accordance with
industry standards, prepare and file a Form 15 Suspension Notification with
respect to the Trust Fund, if applicable. Prior to March 30, 2006 and, unless
and until a Form 15 Suspension Notification shall have been filed, on or prior
to March 30 of each year thereafter, the Securities Administrator shall file
(but will not execute) a Form 10-K, in substance conforming to industry
standards and complying with the Rules, with respect to the Trust Fund. The Form
10-K shall include the certification required pursuant to Rule 13a-14 under the
Securities and Exchange Act of 1934, as amended (the "Form 10-K Certification")
signed by an appropriate party or parties (which Form 10-K Certification the
Securities Administrator shall not be required to prepare or sign) and such
other information as is required by the Rules. The Securities Administrator
shall promptly send copies of each periodic report filed on Form 8-K or other
applicable form, each annual report on Form 10-K, and each Form 15 Suspension
Notification, together in each case with the acceptance confirmation receipt
from EDGAR, to McKee Nelson LLP and to the Depositor (i) by e-mail to the e-mail
addresses provided in writing by each of McKee Nelson LLP and the Depositor,
respectively and (ii) to McKee Nelson LLP at 1919 M Street, N.W., Washington,
D.C. 20036, and to the Depositor at the address specified in Section 11.07, in
each case to the attention of a designated contact specified by each of McKee
Nelson LLP and the Depositor, respectively. The Securities Administrator shall
have no liability for any delay in filing the Form 10-K or Form 10-K
Certification due to the failure of any party to sign such Form 10-K or Form
10-K Certification. The Depositor hereby grants to the Securities Administrator
a limited power of attorney to execute and file each Form 8-K (or other
applicable form for filing of periodic reports). Such power of attorney shall
continue until either the earlier of (i) receipt by the Securities Administrator
from the Depositor of written termination of such power of attorney or (ii) the
termination of the Trust Fund. The Depositor agrees to promptly furnish to the
Securities Administrator, from time to time upon request, such further
information, reports, and financial statements within its control related to
this Agreement and the Mortgage Loans as the Securities Administrator reasonably
deems appropriate to prepare and file all necessary reports with the Commission.
The Securities Administrator shall have no responsibility to file any items
other than those specified in this Section 6.20(a).

        (b)     If so requested, the Securities Administrator shall sign a
certification (in the form attached hereto as Exhibit M) for the benefit of the
Person(s) signing the Form 10-K Certification regarding certain aspects of such
Form 10-K Certification (provided, however, that the Securities Administrator
shall not be required to undertake an analysis of, and shall have no
responsibility for, any financial information, accountant's report,
certification or other matter contained therein, except for computations
performed by the Securities Administrator and reflected in distribution
reports), which certification shall be delivered to such Person(s) not later
than five Business Days prior to the date on which the Form 10-K is required to
be filed with the Commission.

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        (c)     If so requested, the Master Servicer shall sign a certification
for the benefit of the Person(s) signing the Form 10-K Certification regarding
certain aspects of such Form 10-K Certification (provided, however, that the
Master Servicer shall not be required to undertake an analysis of the
accountant's report attached as an exhibit to the Form 10-K).

        (d)     Each person (including their officers or directors) that signs
any Form 10-K Certification shall be entitled to indemnification from the Trust
Fund for any liability or expense incurred by it in connection with such
certification, other than any liability or expense attributable to such Person's
own bad faith, negligence or willful misconduct. The provisions of this
subsection shall survive any termination of this Agreement and the resignation
or removal of such Person.

        Section 6.21. Reporting Requirements of the Commission.

        The Securities Administrator and the Master Servicer shall reasonably
cooperate with the Depositor and its counsel to enter into such amendments or
modifications to the Agreement as may be necessary to comply with the Rules and
any interpretation thereof by the staff of the Commission, subject to the
provisions of Section 11.03 hereof.

                                  ARTICLE VII

                            PURCHASE AND TERMINATION
                                OF THE TRUST FUND

        Section 7.01. Termination of Trust Fund Upon Repurchase or Liquidation
                      of All Mortgage Loans.

        (a)     The respective obligations and responsibilities of the Trustee,
the Securities Administrator and the Master Servicer created hereby (other than
the obligation of the Trustee to make payments to Certificateholders as set
forth in Section 7.02, the obligation of the Master Servicer to make a final
remittance to the Securities Administrator for deposit into the Certificate
Account pursuant to Section 4.01 and the obligations of the Master Servicer to
the Securities Administrator and the Trustee pursuant to Sections 9.10 and
9.14), shall terminate on the earlier of (i) the final payment or other
liquidation of the last Mortgage Loan remaining in the Trust Fund and the
disposition of all REO Property and (ii) the sale of all remaining property held
by the Trust Fund in accordance with Section 7.01(b); provided, however, that in
no event shall the Trust Fund created hereby continue beyond the expiration of
21 years from the death of the last survivor of the descendants of Joseph P.
Kennedy, the late Ambassador of the United States to the Court of St. James's,
living on the date hereof. Any termination of the Trust Fund shall be carried
out in such a manner so that the termination of each REMIC included therein
shall qualify as a "qualified liquidation" under the REMIC Provisions.

        (b)     On any Distribution Date occurring after the date on which the
aggregate Scheduled Principal Balance of the Mortgage Loans in the Trust Fund is
less than 10% of the Principal Balance of the Mortgage Loans in the Trust Fund
(determined in the aggregate rather than by pool) as of the Cut-off Date, the
Master Servicer, with the consent of the Seller (which

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consent will not be unreasonably withheld), may, upon written direction to the
Trustee, cause the Trustee to sell (or arrange for the sale of) the assets of
the Trust Fund. Upon the repurchase of the Mortgage Loans in the Trust Fund, the
Master Servicer shall, upon written direction to the Trustee, cause each REMIC
included in the Trust Fund to adopt a plan of complete liquidation pursuant to
Section 7.03 hereof to sell all of its property. The property of the Trust Fund
shall be sold at a price (the "Repurchase Price") equal to: (i) 100% of the
unpaid principal balance of each Mortgage Loan on the day of such purchase plus
interest accrued thereon at the applicable Mortgage Rate with respect to any
Mortgage Loan to the Due Date in the Due Period immediately preceding such
Distribution Date, (ii) the fair market value of any REO Property and any other
property held by the Trust Fund, such fair market value to be determined by an
appraiser or appraisers appointed by the Master Servicer with the consent of the
Trustee and (iii) any unreimbursed Servicing Advances with respect to each
Mortgage Loan in the Trust Fund. The Master Servicer and each Servicer (or the
Trustee, if applicable) shall be reimbursed from the Repurchase Price for any
Mortgage Loan or related REO Property for any Advances or Servicing Advances
made with respect to the Mortgage Loans that are reimbursable to the Master
Servicer under this Agreement or to each Servicer under the related Servicing
Agreement (or to the Trustee hereunder), together with any accrued and unpaid
compensation and any other amounts due to the Master Servicer and the Trustee
hereunder or the Custodians or the Servicers under their respective Custodial or
Servicing Agreements, provided that any such compensation or other amount to be
paid to the Custodians and any other amounts to be paid to the Servicers are
"unanticipated expenses" within the meaning of Treasury Regulation Section
1.860G-1(b)(3)(ii). The Trustee shall distribute the assets of the Trust Fund on
the Distribution Date on which the repurchase occurred. Upon the repurchase of
the Mortgage Loans, the Trust Fund shall terminate in accordance with the terms
of this Agreement.

        Section 7.02. Procedure Upon Termination of Trust Fund.

        (a)     Notice of any termination pursuant to the provisions of Section
7.01, specifying the Distribution Date upon which the final distribution shall
be made, shall be given promptly by the Trustee by first class mail to
Certificateholders mailed (x) no later than five Business Days after the Trustee
has received notice from the Master Servicer of its intent to exercise its right
to cause the termination of the Trust Fund pursuant to Section 7.01(b) or (y)
upon the final payment or other liquidation of the last Mortgage Loan or REO
Property in the Trust Fund. Such notice shall specify (A) the Distribution Date
upon which final distribution on the Certificates of all amounts required to be
distributed to Certificateholders pursuant to Section 5.02 will be made upon
presentation and surrender of the Certificates at the Corporate Trust Office,
and (B) that the Record Date otherwise applicable to such Distribution Date is
not applicable, distribution being made only upon presentation and surrender of
the Certificates at the office or agency of the Trustee therein specified. The
Trustee shall give such notice to the Securities Administrator, the Master
Servicer, the Depositor and the Certificate Registrar at the time such notice is
given to Holders of the Certificates. Upon any such termination, the duties of
the Certificate Registrar with respect to the Certificates shall terminate and
the Trustee shall terminate, or request the Master Servicer to terminate, the
Collection Account it maintains, the Certificate Account and any other account
or fund maintained with respect to the Certificates, subject to the Trustee's
obligation hereunder to hold all amounts payable to Certificateholders in trust
without interest pending such payment.

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        (b)     In the event that all of the Holders do not surrender their
Certificates for cancellation within three months after the time specified in
the above-mentioned written notice, the Trustee shall give a second written
notice to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final distribution with respect thereto. If within
one year after the second notice any Certificates shall not have been
surrendered for cancellation, the Trustee may take appropriate steps to contact
the remaining Certificateholders concerning surrender of such Certificates, and
the cost thereof shall be paid out of the amounts distributable to such Holders.
If within two years after the second notice any Certificates shall not have been
surrendered for cancellation, the Trustee shall, subject to applicable state law
relating to escheatment, hold all amounts distributable to such Holders for the
benefit of such Holders. No interest shall accrue on any amount held by the
Trustee and not distributed to a Certificateholder due to such
Certificateholder's failure to surrender its Certificate(s) for payment of the
final distribution thereon in accordance with this Section.

        (c)     Any reasonable expenses incurred by the Trustee and the
Securities Administrator in connection with any termination or liquidation of
the Trust Fund shall be paid from proceeds received from the liquidation of the
Trust Fund, but only to the extent that such expenses constitute "unanticipated
expenses" within the meaning of Treasury Regulations Section 1.860G-1(b)(3)(ii).

        Section 7.03. Additional Requirements under the REMIC Provisions.

        (a)     Any termination of the Trust Fund shall be effected in
accordance with the following additional requirements, unless the Trustee seeks
(at the request of the Master Servicer), and subsequently receives, an Opinion
of Counsel (at the expense of the Master Servicer), addressed to the Trustee to
the effect that the failure of the Trust Fund to comply with the requirements of
this Section 7.03 will not (i) result in the imposition of taxes on any REMIC
under the REMIC Provisions or (ii) cause any REMIC established hereunder to fail
to qualify as a REMIC at any time that any Certificates are outstanding:

                (i)     The Trustee shall sell all of the assets of the Trust
        Fund for cash and, within 90 days of such sale, shall distribute the
        proceeds of such sale to the Certificateholders in complete liquidation
        of the Trust Fund, REMIC 1, REMIC 2 and the Upper Tier REMIC; and

                (ii)    The Trustee shall attach a statement to the final
        Federal income tax return for each of REMIC 1, REMIC 2 and the Upper
        Tier REMIC stating that pursuant to Treasury Regulation Section
        1.860F-1, the first day of the 90-day liquidation period for each such
        REMIC was the date on which the Trustee sold the assets of the Trust
        Fund.

        (b)     By its acceptance of a Residual Certificate, each Holder thereof
hereby (i) authorizes the Trustee and the Securities Administrator to take the
action described in paragraph (a) above and (ii) agrees to take such other
action as may be necessary to facilitate liquidation of each REMIC created under
this Agreement, which authorization shall be binding upon all successor Residual
Certificateholders.

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                                  ARTICLE VIII

                          RIGHTS OF CERTIFICATEHOLDERS

        Section 8.01. Limitation on Rights of Holders.

        (a)     The death or incapacity of any Certificateholder shall not
operate to terminate this Agreement or this Trust Fund, nor entitle such
Certificateholder's legal representatives or heirs to claim an accounting or
take any action or proceeding in any court for a partition or winding up of this
Trust Fund, nor otherwise affect the rights, obligations and liabilities of the
parties hereto or any of them. Except as otherwise expressly provided herein, no
Certificateholder, solely by virtue of its status as a Certificateholder, shall
have any right to vote or in any manner otherwise control the Master Servicer or
the operation and management of the Trust Fund, or the obligations of the
parties hereto, nor shall anything herein set forth, or contained in the terms
of the Certificates, be construed so as to constitute the Certificateholders
from time to time as partners or members of an association, nor shall any
Certificateholder be under any liability to any third person by reason of any
action taken by the parties to this Agreement pursuant to any provision hereof.

        (b)     No Certificateholder, solely by virtue of its status as
Certificateholder, shall have any right by virtue or by availing of any
provision of this Agreement to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Agreement, unless such
Holder previously shall have given to the Trustee a written notice of an Event
of Default and of the continuance thereof, as hereinbefore provided, and unless
also the Holders of Certificates evidencing not less than 25% of the Class
Principal Amount (or Class Notional Amount) of Certificates of each Class
affected thereby shall have made written request upon the Trustee to institute
such action, suit or proceeding in its own name as Trustee hereunder and shall
have offered to the Trustee such reasonable indemnity as it may require against
the cost, expenses and liabilities to be incurred therein or thereby, and the
Trustee, for sixty days after its receipt of such notice, request and offer of
indemnity, shall have neglected or refused to institute any such action, suit or
proceeding and no direction inconsistent with such written request has been
given such Trustee during such sixty-day period by such Certificateholders; it
being understood and intended, and being expressly covenanted by each
Certificateholder with every other Certificateholder and the Trustee, that no
one or more Holders of Certificates shall have any right in any manner whatever
by virtue or by availing of any provision of this Agreement to affect, disturb
or prejudice the rights of the Holders of any other of such Certificates, or to
obtain or seek to obtain priority over or preference to any other such Holder,
or to enforce any right under this Agreement, except in the manner herein
provided and for the benefit of all Certificateholders. For the protection and
enforcement of the provisions of this Section, each and every Certificateholder
and the Trustee shall be entitled to such relief as can be given either at law
or in equity.

        Section 8.02. Access to List of Holders.

        (a)     If the Trustee is not acting as Certificate Registrar, the
Certificate Registrar will furnish or cause to be furnished to the Trustee,
within fifteen days after receipt by the Certificate Registrar of a request by
the Trustee in writing, a list, in such form as the Trustee may

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reasonably require, of the names and addresses of the Certificateholders of each
Class as of the most recent Record Date.

        (b)     If three or more Holders or Certificate Owners (hereinafter
referred to as "Applicants") apply in writing to the Trustee, and such
application states that the Applicants desire to communicate with other Holders
with respect to their rights under this Agreement or under the Certificates and
is accompanied by a copy of the communication which such Applicants propose to
transmit, then the Trustee shall, within five Business Days after the receipt of
such application, afford such Applicants reasonable access during the normal
business hours of the Trustee to the most recent list of Certificateholders held
by the Trustee or shall, as an alternative, send, at the Applicants' expense,
the written communication proffered by the Applicants to all Certificateholders
at their addresses as they appear in the Certificate Register.

        (c)     Every Holder or Certificate Owner, if the Holder is a Clearing
Agency, by receiving and holding a Certificate, agrees with the Depositor, the
Securities Administrator, the Master Servicer, the Certificate Registrar and the
Trustee that neither the Depositor, the Securities Administrator, the Master
Servicer, the Certificate Registrar nor the Trustee shall be held accountable by
reason of the disclosure of any such information as to the names and addresses
of the Certificateholders hereunder, regardless of the source from which such
information was derived.

        Section 8.03. Acts of Holders of Certificates.

        (a)     Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Agreement to be given or taken by
Holders or Certificate Owner, if the Holder is a Clearing Agency, may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by agent duly appointed in writing;
and, except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee, the
Securities Administrator and, where expressly required herein, to the Master
Servicer. Such instrument or instruments (as the action embodies therein and
evidenced thereby) are herein sometimes referred to as an "Act" of the Holders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agents shall be sufficient for
any purpose of this Agreement and conclusive in favor of the Trustee, the
Securities Administrator and Master Servicer, if made in the manner provided in
this Section. Each of the Trustee, the Securities Administrator and Master
Servicer shall promptly notify the others of receipt of any such instrument by
it, and shall promptly forward a copy of such instrument to the others.

        (b)     The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by the certificate of any notary public or other officer authorized
by law to take acknowledgments or deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Whenever
such execution is by an officer of a corporation or a member of a partnership on
behalf of such corporation or partnership, such certificate or affidavit shall
also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the individual
executing the same, may also be proved in any other manner which the Trustee
deems sufficient.

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        (c)     The ownership of Certificates (whether or not such Certificates
shall be overdue and notwithstanding any notation of ownership or other writing
thereon made by anyone other than the Trustee) shall be proved by the
Certificate Register, and neither the Trustee, the Securities Administrator, the
Master Servicer and the Depositor shall not be affected by any notice to the
contrary.

        (d)     Any request, demand, authorization, direction, notice, consent,
waiver or other action by the Holder of any Certificate shall bind every future
Holder of the same Certificate and the Holder of every Certificate issued upon
the registration of transfer thereof or in exchange therefor or in lieu thereof,
in respect of anything done, omitted or suffered to be done by the Trustee, the
Securities Administrator or the Master Servicer in reliance thereon, whether or
not notation of such action is made upon such Certificate.

                                   ARTICLE IX

                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
                             BY THE MASTER SERVICER

        Section 9.01. Duties of the Master Servicer.

        The Certificateholders, by their purchase and acceptance of the
Certificates, appoint Aurora Loan Services LLC, as Master Servicer. For and on
behalf of the Depositor, the Trustee and the Certificateholders, the Master
Servicer shall master service the Mortgage Loans in accordance with the
provisions of this Agreement and the provisions of the applicable Servicing
Agreement.

        Section 9.02. Master Servicer Fidelity Bond and Master Servicer Errors
                      and Omissions Insurance Policy.

        (a)     The Master Servicer, at its expense, shall maintain in effect a
Fidelity Bond and an Errors and Omissions Insurance Policy, affording coverage
with respect to all directors, officers, employees and other Persons acting on
such Master Servicer's behalf, and covering errors and omissions in the
performance of the Master Servicer's obligations hereunder. The Errors and
Omissions Insurance Policy and the Fidelity Bond shall be in such form and
amount that would meet the requirements of FNMA or FHLMC if it were the
purchaser of the Mortgage Loans. The Master Servicer shall (i) require each
Servicer to maintain an Errors and Omissions Insurance Policy and a Fidelity
Bond in accordance with the provisions of the applicable Servicing Agreement,
(ii) cause each Servicer to provide to the Master Servicer certificates
evidencing that such policy and bond is in effect and to furnish to the Master
Servicer any notice of cancellation, non-renewal or modification of the policy
or bond received by it, as and to the extent provided in the applicable
Servicing Agreement, and (iii) furnish copies of the certificates and notices
referred to in clause (ii) to the Trustee upon its request. The Fidelity Bond
and Errors and Omissions Insurance Policy may be obtained and maintained in
blanket form.

        (b)     The Master Servicer shall promptly report to the Trustee any
material changes that may occur in the Master Servicer Fidelity Bond or the
Master Servicer Errors and Omissions Insurance Policy and shall furnish to the
Trustee, on request, certificates evidencing that such

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bond and insurance policy are in full force and effect. The Master Servicer
shall promptly report to the Trustee all cases of embezzlement or fraud, if such
events involve funds relating to the Mortgage Loans. The total losses,
regardless of whether claims are filed with the applicable insurer or surety,
shall be disclosed in such reports together with the amount of such losses
covered by insurance. If a bond or insurance claim report is filed with any of
such bonding companies or insurers, the Master Servicer shall promptly furnish a
copy of such report to the Trustee. Any amounts relating to the Mortgage Loans
collected by the Master Servicer under any such bond or policy shall be promptly
remitted by the Master Servicer to the Trustee for deposit into the Certificate
Account. Any amounts relating to the Mortgage Loans collected by any Servicer
under any such bond or policy shall be remitted to the Master Servicer to the
extent provided in the applicable Servicing Agreement.

        Section 9.03. Master Servicer's Financial Statements and Related
                      Information.

        For each year this Agreement is in effect, the Master Servicer shall
submit to the Trustee, each Rating Agency and the Depositor a copy of its annual
unaudited financial statements on or prior to the last day of February of each
year commencing on February 28, 2006. Such financial statements shall include a
balance sheet, income statement, statement of retained earnings, statement of
additional paid-in capital, statement of changes in financial position and all
related notes and schedules and shall be in comparative form, certified by a
nationally recognized firm of Independent Accountants to the effect that such
statements were examined and prepared in accordance with generally accepted
accounting principles applied on a basis consistent with that of the preceding
year.

        Section 9.04. Power to Act; Procedures.

        (a)     The Master Servicer shall master service the Mortgage Loans and
shall have full power and authority, subject to the REMIC Provisions and the
provisions of Article X hereof, and each Servicer shall have full power and
authority (to the extent provided in the applicable Servicing Agreement) to do
any and all things that it may deem necessary or desirable in connection with
the servicing and administration of the Mortgage Loans, including but not
limited to the power and authority (i) to execute and deliver, on behalf of the
Certificateholders and the Trustee, customary consents or waivers and other
instruments and documents, (ii) to consent to transfers of any Mortgaged
Property and assumptions of the Mortgage Notes and related Mortgages, (iii) to
collect any Insurance Proceeds and Liquidation Proceeds, and (iv) to effectuate
foreclosure or other conversion of the ownership of the Mortgaged Property
securing any Mortgage Loan, in each case, in accordance with the provisions of
this Agreement and the applicable Servicing Agreement, as applicable; provided
that the Master Servicer shall not take, or knowingly permit any Servicer to
take, any action that is inconsistent with or prejudices the interests of the
Trust Fund or the Certificateholders in any Mortgage Loan or the rights and
interests of the Depositor, the Trustee and the Certificateholders under this
Agreement. The Master Servicer further is authorized and empowered by the
Trustee, on behalf of the Certificateholders and the Trustee, in its own name or
in the name of any Servicer, when the Master Servicer or a Servicer, as the case
may be, believes it is appropriate in its best judgment to register any Mortgage
Loan with MERS, or cause the removal from the registration of any Mortgage Loan
on the MERS system, to execute and deliver, on behalf of the Trustee and the
Certificateholders or any of them, any and all instruments of assignment and
other comparable

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instruments with respect to such assignment or re-recording of a Mortgage in the
name of MERS, solely as nominee for the Trustee and its successors and assigns.
The Master Servicer shall represent and protect the interests of the Trust Fund
in the same manner as it protects its own interests in mortgage loans in its own
portfolio in any claim, proceeding or litigation regarding a Mortgage Loan and
shall not make or knowingly permit any Servicer to make any modification, waiver
or amendment of any term of any Mortgage Loan that would cause any REMIC
included in the Trust Fund to fail to qualify as a REMIC or result in the
imposition of any tax under Section 860F(a) or Section 860G(d) of the Code.
Without limiting the generality of the foregoing, the Master Servicer in its own
name or in the name of a Servicer, and each Servicer, to the extent such
authority is delegated to such Servicer by the Master Servicer under the
applicable Servicing Agreement, is hereby authorized and empowered by the
Trustee when the Master Servicer or a Servicer, as the case may be, believes it
appropriate in its best judgment and in accordance with Accepted Servicing
Practices and the applicable Servicing Agreement, to execute and deliver, on
behalf of itself and the Certificateholders, the Trustee or any of them, any and
all instruments of satisfaction or cancellation, or of partial or full release
or discharge and all other comparable instruments, with respect to the Mortgage
Loans and with respect to the Mortgaged Properties. The Trustee shall furnish
the Master Servicer or a Servicer, upon request, with any powers of attorney
prepared by the Master Servicer or such Servicer empowering the Master Servicer
or such Servicer to execute and deliver instruments of satisfaction or
cancellation, or of partial or full release or discharge, and to foreclose upon
or otherwise liquidate Mortgaged Property, and to appeal, prosecute or defend in
any court action relating to the Mortgage Loans or the Mortgaged Property, in
accordance with the applicable Servicing Agreement and this Agreement, and the
Trustee shall execute and deliver such other documents, as the Master Servicer
may request, necessary or appropriate to enable the Master Servicer to master
service the Mortgage Loans and carry out its duties hereunder and to allow each
Servicer to service the Mortgage Loans, in each case in accordance with Accepted
Servicing Practices (and the Trustee shall have no liability for misuse of any
such powers of attorney by the Master Servicer or the applicable Servicer). If
the Master Servicer or the Trustee has been advised that it is likely that the
laws of the state in which action is to be taken prohibit such action if taken
in the name of the Trustee or that the Trustee would be adversely affected under
the "doing business" or tax laws of such state if such action is taken in its
name, then upon request of the Trustee, the Master Servicer shall join with the
Trustee in the appointment of a co-trustee pursuant to Section 6.09 hereof. In
the performance of its duties hereunder, the Master Servicer shall be an
independent contractor and shall not, except in those instances where it is
taking action in the name of the Trustee, be deemed to be the agent of the
Trustee.

        (b)     In master servicing and administering the Mortgage Loans, the
Master Servicer shall employ procedures and exercise the same care that it
customarily employs and exercises in master servicing and administering loans
for its own account, giving due consideration to Accepted Servicing Practices
where such practices do not conflict with this Agreement. Consistent with the
foregoing, the Master Servicer may, and may permit any Servicer to, in its
discretion (i) waive any late payment charge (but not any Prepayment Penalty
Amount, except as set forth below) and (ii) extend the due dates for payments
due on a Mortgage Note for a period not greater than 120 days; provided,
however, that the maturity of any Mortgage Loan shall not be extended past the
date on which the final payment is due on the latest maturing Mortgage Loan as
of the Cut-off Date. In the event of any extension described in clause (ii)
above, the Master Servicer shall make or cause to be made Advances on the
related Mortgage Loan in

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accordance with the provisions of Section 5.04 on the basis of the amortization
schedule of such Mortgage Loan without modification thereof by reason of such
extension. Notwithstanding anything to the contrary in this Agreement, the
Master Servicer shall not make or knowingly permit any modification, waiver or
amendment of any material term of any Mortgage Loan unless: (1) such Mortgage
Loan is in default or default by the related Mortgagor is, in the reasonable
judgment of the Master Servicer or the applicable Servicer, reasonably
foreseeable, (2) in the case of a waiver of a Prepayment Penalty Amount if (a)
such Mortgage Loan is in default or default by the related Mortgagor is
reasonably foreseeable, and such waiver would maximize recovery of total
proceeds taking into account the value of such Prepayment Penalty Amount and the
related Mortgage Loan or (b) if the prepayment is not the result of a refinance
by the Servicer or any of its affiliates and (i) such Mortgage Loan is in
default or default by the related Mortgagor is, in the reasonable judgment of
the Master Servicer or the applicable Servicer, reasonably foreseeable, and such
waiver would maximize recovery of total proceeds taking into account the value
of such Prepayment Penalty Amount and the related Mortgage Loan or (ii) the
collection of the Prepayment Penalty Amount would be in violation of applicable
laws or (iii) the collection of such Prepayment Penalty Amount would be
considered "predatory" pursuant to written guidance published or issued by any
applicable federal, state or local regulatory authority acting in its official
capacity and having jurisdiction over such matters, and (3) the Master Servicer
shall have provided or caused to be provided to the Trustee an Opinion of
Counsel (which opinion shall, if provided by the Master Servicer, be an expense
reimbursed, to the extent it is an unanticipated expense within the meaning of
Treasury Regulation Section 1.860G-1(b)(3)(ii) from the Collection Account
pursuant to Section 4.02(v)) in writing to the effect that such modification,
waiver or amendment would not cause an Adverse REMIC Event; provided, in no
event shall an Opinion of Counsel be required for the waiver of a Prepayment
Penalty Amount under clause (2) above.

        Section 9.05. Servicing Agreements Between the Master Servicer and
                      Servicers; Enforcement of Servicers' Obligations.

        (a)     Each Servicing Agreement requires the applicable Servicer to
service the Mortgage Loans in accordance with the provisions thereof. References
in this Agreement to actions taken or to be taken by the Master Servicer include
such actions taken or to be taken by a Servicer pursuant to a Servicing
Agreement. Any fees, costs and expenses and other amounts payable to such
Servicers shall be deducted from amounts remitted to the Master Servicer by the
applicable Servicer (to the extent permitted by the applicable Servicing
Agreement) and shall not be an obligation of the Trust, the Trustee or the
Master Servicer.

        (b)     The Master Servicer shall not be required to (i) take any action
with respect to the servicing of any Mortgage Loan that the related Servicer is
not required to take under the related Servicing Agreement and (ii) cause a
Servicer to take any action or refrain from taking any action if the related
Servicing Agreement does not require the Servicer to take such action or refrain
from taking such action; in both cases notwithstanding any provision of this
Agreement that requires the Master Servicer to take such action or cause the
Servicer to take such action.

        (c)     The Master Servicer, for the benefit of the Trustee and the
Certificateholders, shall enforce the obligations of each Servicer under the
related Servicing Agreement, and shall use its reasonable best efforts to
enforce the obligations of each Servicer under the related

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Servicing Agreement and shall, upon its obtaining actual knowledge of the
failure of a Servicer to perform its obligations in accordance with the related
Servicing Agreement, to the extent that the non-performance of any such
obligations would have a material adverse effect on a Mortgage Loan, the Trust
Fund or Certificateholders, terminate the rights and obligations of such
Servicer thereunder to the extent and in the manner permitted by the related
Servicing Agreement and either act as servicer of the related Mortgage Loans or
enter into a Servicing Agreement with a successor Servicer. Such enforcement,
including, without limitation, the legal prosecution of claims, termination of
Servicing Agreements and the pursuit of other appropriate remedies, shall be in
such form and carried out to such an extent and at such time as the Master
Servicer, in its good faith business judgment, would require were it the owner
of the related Mortgage Loans. The Master Servicer shall pay the costs of such
enforcement at its own expense, and shall be reimbursed therefor initially only
(i) from a general recovery resulting from such enforcement only to the extent,
if any, that such recovery exceeds all amounts due in respect of the related
Mortgage Loans, (ii) from a specific recovery of costs, expenses or attorneys'
fees against the party against whom such enforcement is directed, and then, to
the extent that such amounts are insufficient to reimburse the Master Servicer
for the costs of such enforcement or (iii) from the Collection Account.

        (d)     The Master Servicer shall be entitled to conclusively rely on
any certifications or other information provided by the Servicers under the
terms of the applicable Servicing Agreement, in its preparation of any
certifications, filings or reports, in accordance with the terms hereof or as
may be required by applicable law or regulation.

        Section 9.06. Collection of Taxes, Assessments and Similar Items.

        (a)     To the extent provided in the applicable Servicing Agreement,
the Master Servicer shall cause each Servicer to establish and maintain one or
more custodial accounts at a depository institution (which may be a depository
institution with which the Master Servicer or any Servicer establishes accounts
in the ordinary course of its servicing activities), the accounts of which are
insured to the maximum extent permitted by the FDIC (each, an "Escrow Account")
and shall deposit therein any collections of amounts received with respect to
amounts due for taxes, assessments, water rates, Standard Hazard Insurance
Policy premiums or any comparable items for the account of the Mortgagors.
Withdrawals from any Escrow Account may be made (to the extent amounts have been
escrowed for such purpose) only in accordance with the applicable Servicing
Agreement. Each Servicer shall be entitled to all investment income not required
to be paid to Mortgagors on any Escrow Account maintained by such Servicer. The
Master Servicer shall make (or cause to be made) to the extent provided in the
applicable Servicing Agreement advances to the extent necessary in order to
effect timely payment of taxes, water rates, assessments, Standard Hazard
Insurance Policy premiums or comparable items in connection with the related
Mortgage Loan (to the extent that the Mortgagor is required, but fails, to pay
such items), provided that it has determined that the funds so advanced are
recoverable from escrow payments, reimbursement pursuant to Section 4.02(v) or
otherwise.

        (b)     Costs incurred by the Master Servicer or by Servicers in
effecting the timely payment of taxes and assessments on the properties subject
to the Mortgage Loans may be added to the amount owing under the related
Mortgage Note where the terms of the Mortgage Note so permit; provided, however,
that the addition of any such cost shall not be taken into account for

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purposes of calculating the distributions to be made to Certificateholders. Such
costs, to the extent that they are unanticipated expenses within the meaning of
Treasury Regulations Section 1.860G-1(b)(3)(ii) shall be recoverable by the
Master Servicer pursuant to Section 4.02(v).

        Section 9.07. Termination of Servicing Agreements; Successor Servicers.

        (a)     The Master Servicer shall be entitled to terminate the rights
and obligations of any Servicer under the applicable Servicing Agreement in
accordance with the terms and conditions of such Servicing Agreement and without
any limitation by virtue of this Agreement; provided, however, that in the event
of termination of any Servicing Agreement by the Master Servicer or the related
Servicer, the Master Servicer shall either act as Servicer of the related
Mortgage Loans, or enter into a Servicing Agreement with a successor Servicer.

        The parties acknowledge that notwithstanding the preceding sentence,
there may be a transition period, not to exceed 90 days, in order to effect the
transfer of servicing to a successor Servicer. The Master Servicer shall be
entitled to be reimbursed from each Servicer (or by the Trust Fund, if such
Servicer is unable to fulfill its obligations hereunder) for all costs
associated with the transfer of servicing from the predecessor servicer,
including without limitation, any costs or expenses associated with the complete
transfer of all servicing data and the completion, correction or manipulation of
such servicing data, as may be required by the Master Servicer to correct any
errors or insufficiencies in the servicing data or otherwise to enable the
Master Servicer to service the Mortgage Loans properly and effectively.

        (b)     If the Master Servicer acts as Servicer, it will not assume
liability for the representations and warranties of the Servicer, if any, that
it replaces. The Master Servicer shall use reasonable efforts to have the
successor Servicer assume liability for the representations and warranties made
by the terminated Servicer in respect of the related Mortgage Loans, and in the
event of any such assumption by the successor Servicer, the Trustee or the
Master Servicer, as applicable, may, in the exercise of its business judgment,
release the terminated Servicer from liability for such representations and
warranties.

        Section 9.08. Master Servicer Liable for Enforcement.

        Notwithstanding any Servicing Agreement, the Master Servicer shall
remain obligated and liable to the Trustee and the Certificateholders in
accordance with the provisions of this Agreement, to the extent of its
obligations hereunder, without diminution of such obligation or liability by
virtue of such Servicing Agreements or arrangements. The Master Servicer shall
use commercially reasonable efforts to ensure that the Mortgage Loans are
serviced in accordance with the provisions of this Agreement and shall use
commercially reasonable efforts to enforce the provisions of each Servicing
Agreement for the benefit of the Certificateholders. The Master Servicer shall
be entitled to enter into any agreement with the Servicers for indemnification
of the Master Servicer and nothing contained in this Agreement shall be deemed
to limit or modify such indemnification. Except as expressly set forth herein,
the Master Servicer shall have no liability for the acts or omissions of any
Servicer in the performance by such Servicer of its obligations under the
related Servicing Agreement.

        Section 9.09. No Contractual Relationship Between Servicers and Trustee
                      or Depositor.

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        Any Servicing Agreement that may be entered into and any other
transactions or services relating to the Mortgage Loans involving a Servicer in
its capacity as such and not as an originator shall be deemed to be between such
Servicer, the Seller and the Master Servicer, and the Trustee, the Securities
Administrator and the Depositor shall not be deemed parties thereto and shall
have no claims, rights, obligations, duties or liabilities with respect to such
Servicer except as set forth in Section 9.10 hereof.

        Section 9.10. Assumption of Servicing Agreement by Securities
                      Administrator.

        (a)     In the event the Master Servicer shall for any reason no longer
be the Master Servicer (including by reason of any Event of Default under this
Agreement), after a period not to exceed ninety days after the Securities
Administrator receives written notice from the Trustee pursuant to Section 6.14
or Section 9.28, as applicable, the Securities Administrator shall thereupon
assume all of the rights and obligations of such Master Servicer hereunder and
enforce the rights under each Servicing Agreement entered into with respect to
the Mortgage Loans. The Securities Administrator, its designee or any successor
master servicer appointed by the Securities Administrator or the Trustee shall
be deemed to have assumed all of the Master Servicer's interest herein and
therein to the same extent as if such Servicing Agreement had been assigned to
the assuming party, except that the Master Servicer shall not thereby be
relieved of any liability or obligations of the Master Servicer under such
Servicing Agreement accruing prior to its replacement as Master Servicer, and
shall be liable to the Securities Administrator, and hereby agrees to indemnify
and hold harmless the Securities Administrator from and against all costs,
damages, expenses and liabilities (including reasonable attorneys' fees)
incurred by the Securities Administrator as a result of such liability or
obligations of the Master Servicer and in connection with the Securities
Administrator's assumption (but not its performance, except to the extent that
costs or liability of the Securities Administrator are created or increased as a
result of negligent or wrongful acts or omissions of the Master Servicer prior
to its replacement as Master Servicer) of the Master Servicer's obligations,
duties or responsibilities thereunder; provided that the Master Servicer shall
not indemnify or hold harmless the Securities Administrator against negligent or
willful misconduct of the Securities Administrator.

        (b)     The Master Servicer that has been terminated shall, upon request
of the Securities Administrator but at the expense of such Master Servicer or at
the expense of the Trust Fund, deliver to the assuming party all documents and
records relating to each Servicing Agreement and the related Mortgage Loans and
an accounting of amounts collected and held by it and otherwise use its best
efforts to effect the orderly and efficient transfer of each Servicing Agreement
to the assuming party.

        Section 9.11. "Due-on-Sale" Clauses; Assumption Agreements.

        (a)     To the extent provided in the applicable Servicing Agreement, to
the extent Mortgage Loans contain enforceable due-on-sale clauses, and to the
extent that the Master Servicer has knowledge of the conveyance of a Mortgaged
Property, the Master Servicer shall use its reasonable best efforts to cause the
Servicers to enforce such clauses in accordance with the applicable Servicing
Agreement. If applicable law prohibits the enforcement of a due-on-sale clause
or such clause is otherwise not enforced in accordance with the applicable
Servicing

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Agreement, and, as a consequence, a Mortgage Loan is assumed, the original
Mortgagor may be released from liability in accordance with the applicable
Servicing Agreement.

        (b)     The Master Servicer or the related Servicer, as the case may be,
shall be entitled to approve a request from a Mortgagor for the granting of an
easement thereon in favor of another Person or any alteration or demolition of
the related Mortgaged Property if it has determined, exercising its good faith
business judgment in the same manner as it would if it were the owner of the
related Mortgage Loan, that the security for, and the timely and full
collectability of, such Mortgage Loan would not be materially adversely affected
thereby. Any fee collected by the Master Servicer or the related Servicer for
processing such a request will be retained by the Master Servicer or such
Servicer as additional servicing compensation.

        Section 9.12. Release of Mortgage Files.

        (a)     Upon (i) becoming aware of the payment in full of any Mortgage
Loan, (ii) the receipt by the Master Servicer of a notification that payment in
full has been or will be escrowed in a manner customary for such purposes, or
(iii) in the case of a Mortgage Loan as to which the related Mortgaged Property
is located in California, receipt by the Master Servicer of notification from
the applicable Servicer that the Servicer reasonably expects that payment in
full will be received promptly, the Master Servicer will, or will cause the
applicable Servicer to, promptly notify the Trustee (or the applicable
Custodian) by a certification (which certification shall include a statement to
the effect that all amounts received or to be received in connection with such
payment that are required to be deposited in the Collection Account maintained
by the Master Servicer pursuant to Section 4.01 have been or will be so
deposited) of a Servicing Officer and shall request the Trustee or the
applicable Custodian, to deliver to the applicable Servicer the related Mortgage
File. In lieu of sending a hard copy certification of a Servicing Officer, the
Master Servicer may, or may cause the Servicer to, deliver the request for
release in a mutually agreeable electronic format. To the extent that such a
request, on its face, originates from a Servicing Officer, no signature shall be
required. Upon receipt of such certification and request, the Trustee or the
applicable Custodian, shall promptly release the related Mortgage File to the
applicable Servicer and neither the Trustee nor the Custodian shall have any
further responsibility with regard to such Mortgage File. The Master Servicer is
authorized, and each Servicer, to the extent such authority is delegated to such
Servicer by the Master Servicer under the applicable Servicing Agreement, is
authorized, to give, as agent for the Trustee, as the mortgagee under the
Mortgage that secured the Mortgage Loan, an instrument of satisfaction (or
assignment of mortgage without recourse) regarding the Mortgaged Property
subject to the Mortgage, which instrument of satisfaction or assignment, as the
case may be, shall be delivered to the Person or Persons entitled thereto
against receipt therefor of such payment, it being understood and agreed that no
expenses incurred in connection with such instrument of satisfaction or
assignment, as the case may be, shall be chargeable to the Collection Account.

        (b)     From time to time and as appropriate for the servicing or
foreclosure of, or other legal proceedings relating to, any Mortgage Loan and in
accordance with Accepted Servicing Practices and the applicable Servicing
Agreement, the Trustee shall execute such pleadings, request for trustee's sale
or other documents as shall be prepared and furnished to the Trustee by the
Master Servicer, or by a Servicer (in form reasonably acceptable to the Trustee)
and as are necessary to the prosecution of any such proceedings. The Trustee or
the Custodian, shall, upon

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request of the Master Servicer, or of a Servicer, and delivery to the Trustee or
the applicable Custodian, of a trust receipt signed by a Servicing Officer
substantially in the form annexed hereto as Exhibit C or in the form annexed to
the applicable Custodial Agreement as Exhibit C, release the related Mortgage
File held in its possession or control to the Master Servicer (or the applicable
Servicer). Such trust receipt shall obligate the Master Servicer or applicable
Servicer to return the Mortgage File to the Trustee or Custodian, as applicable,
when the need therefor by the Master Servicer or applicable Servicer no longer
exists unless (i) the Mortgage Loan shall be liquidated, in which case, upon
receipt of a certificate of a Servicing Officer similar to that herein above
specified, the trust receipt shall be released by the Trustee or the Custodian,
as applicable, to the Master Servicer (or the applicable Servicer) or (ii) the
Mortgage File has been delivered directly or through a Servicer to an attorney,
or to a public trustee or other public official as required by law, for purposes
of initiating or pursuing legal action or other proceedings for the foreclosure
of the Mortgaged Property either judicially or non-judicially, and the Master
Servicer has delivered directly or through a Servicer to the Trustee a
certificate of a Servicing Officer certifying as to the name and address of the
Person to which such Mortgage File or such document was delivered and the
purpose or purposes of such delivery.

        Section 9.13. Documents, Records and Funds in Possession of Master
                      Servicer To Be Held for Trustee.

        (a)     The Master Servicer shall transmit, or cause the applicable
Servicer to transmit, to the Trustee such documents and instruments coming into
the possession of the Master Servicer or such Servicer from time to time as are
required by the terms hereof to be delivered to the Trustee including notifying
the Trustee (or the applicable Custodian) and the Securities Administrator in
the event that any Mortgagor of any Employee Mortgage Loan ceases to be an
employee of Lehman Brothers Inc. or its Affiliates. Any funds received by the
Master Servicer or by a Servicer in respect of any Mortgage Loan or which
otherwise are collected by the Master Servicer or by a Servicer as a Subsequent
Recovery, Liquidation Proceeds or Insurance Proceeds in respect of any Mortgage
Loan shall be held for the benefit of the Trustee and the Certificateholders
subject to the Master Servicer's right to retain or withdraw from the Collection
Account the Master Servicing Fee and other amounts provided in this Agreement,
and to the right of each Servicer to retain its Servicing Fee and other amounts
as provided in the applicable Servicing Agreement. The Master Servicer shall,
and shall (to the extent provided in the applicable Servicing Agreement) cause
each Servicer to, provide access to information and documentation regarding the
Mortgage Loans to the Trustee, its agents and accountants at any time upon
reasonable request and during normal business hours, and to Certificateholders
that are savings and loan associations, banks or insurance companies, the Office
of Thrift Supervision, the FDIC and the supervisory agents and examiners of such
Office and Corporation or examiners of any other federal or state banking or
insurance regulatory authority if so required by applicable regulations of the
Office of Thrift Supervision or other regulatory authority, such access to be
afforded without charge but only upon reasonable request in writing and during
normal business hours at the offices of the Master Servicer designated by it. In
fulfilling such a request the Master Servicer shall not be responsible for
determining the sufficiency of such information.

        (b)     All Mortgage Files and funds collected or held by, or under the
control of, the Master Servicer, or any Servicer, in respect of any Mortgage
Loans, whether from the collection

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of principal and interest payments or from a Subsequent Recovery, Liquidation
Proceeds or Insurance Proceeds, shall be held by the Master Servicer, or by such
Servicer, for and on behalf of the Trustee and the Certificateholders and shall
be and remain the sole and exclusive property of the Trustee; provided, however,
that the Master Servicer and each Servicer shall be entitled to setoff against,
and deduct from, any such funds any amounts that are properly due and payable to
the Master Servicer or such Servicer under this Agreement or the applicable
Servicing Agreement and shall be authorized to remit such funds to the
Securities Administrator in accordance with this Agreement.

        (c)     The Master Servicer hereby acknowledges that concurrently with
the execution of this Agreement, the Trustee shall own or, to the extent that a
court of competent jurisdiction shall deem the conveyance of the Mortgage Loans
from the Seller to the Depositor not to constitute a sale, the Trustee shall
have a security interest in the Mortgage Loans and in all Mortgage Files
representing such Mortgage Loans and in all funds and investment property now or
hereafter held by, or under the control of, a Servicer or the Master Servicer
that are collected by such Servicer or the Master Servicer in connection with
the Mortgage Loans, whether as scheduled installments of principal and interest
or as full or partial prepayments of principal or interest or as a Subsequent
Recovery, Liquidation Proceeds or Insurance Proceeds or otherwise, and in all
proceeds of the foregoing and proceeds of proceeds (but excluding any fee or
other amounts to which such Servicer is entitled under the applicable Servicing
Agreement, or the Master Servicer or the Depositor is entitled to hereunder);
and the Master Servicer agrees that so long as the Mortgage Loans are assigned
to and held by the Trustee or any Custodian, all documents or instruments
constituting part of the Mortgage Files, and such funds relating to the Mortgage
Loans which come into the possession or custody of, or which are subject to the
control of, the Master Servicer or any Servicer shall be held by the Master
Servicer or such Servicer for and on behalf of the Trustee as the Trustee's
agent and bailee for purposes of perfecting the Trustee's security interest
therein as provided by the applicable Uniform Commercial Code or other laws.

        (d)     The Master Servicer agrees that it shall not, and shall not
authorize any Servicer to, create, incur or subject any Mortgage Loans, or any
funds that are deposited in any custodial account, Escrow Account or the
Collection Account, or any funds that otherwise are or may become due or payable
to the Trustee, to any claim, lien, security interest, judgment, levy, writ of
attachment or other encumbrance, nor assert by legal action or otherwise any
claim or right of setoff against any Mortgage Loan or any funds collected on, or
in connection with, a Mortgage Loan.

        Section 9.14. Representations and Warranties of the Master Servicer.

        (a)     The Master Servicer hereby represents and warrants to the
Depositor, the Securities Administrator and the Trustee, for the benefit of the
Certificateholders, as of the Closing Date that:

                (i)     it is validly existing and in good standing under the
        jurisdiction of its formation, and as Master Servicer has full power and
        authority to transact any and all business contemplated by this
        Agreement and to execute, deliver and comply with its obligations under
        the terms of this Agreement, the execution, delivery and performance

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        of which have been duly authorized by all necessary corporate action on
        the part of the Master Servicer;

                (ii)    the execution and delivery of this Agreement by the
        Master Servicer and its performance and compliance with the terms of
        this Agreement will not (A) violate the Master Servicer's charter or
        bylaws, (B) violate any law or regulation or any administrative decree
        or order to which it is subject or (C) constitute a default (or an event
        which, with notice or lapse of time, or both, would constitute a
        default) under, or result in the breach of, any material contract,
        agreement or other instrument to which the Master Servicer is a party or
        by which it is bound or to which any of its assets are subject, which
        violation, default or breach would materially and adversely affect the
        Master Servicer's ability to perform its obligations under this
        Agreement;

                (iii)   this Agreement constitutes, assuming due authorization,
        execution and delivery hereof by the other respective parties hereto, a
        legal, valid and binding obligation of the Master Servicer, enforceable
        against it in accordance with the terms hereof, except as such
        enforcement may be limited by bankruptcy, insolvency, reorganization,
        moratorium and other laws affecting the enforcement of creditors' rights
        in general, and by general equity principles (regardless of whether such
        enforcement is considered in a proceeding in equity or at law);

                (iv)    the Master Servicer is not in default with respect to
        any order or decree of any court or any order or regulation of any
        federal, state, municipal or governmental agency to the extent that any
        such default would materially and adversely affect its performance
        hereunder;

                (v)     the Master Servicer is not a party to or bound by any
        agreement or instrument or subject to any charter provision, bylaw or
        any other corporate restriction or any judgment, order, writ,
        injunction, decree, law or regulation that may materially and adversely
        affect its ability as Master Servicer to perform its obligations under
        this Agreement or that requires the consent of any third person to the
        execution of this Agreement or the performance by the Master Servicer of
        its obligations under this Agreement;

                (vi)    no litigation is pending or, to the best of the Master
        Servicer's knowledge, threatened against the Master Servicer which would
        prohibit its entering into this Agreement or performing its obligations
        under this Agreement;

                (vii)   the Master Servicer, or an affiliate thereof the primary
        business of which is the servicing of conventional residential mortgage
        loans, is an FNMA- and FHLMC- approved seller/servicer;

                (viii)  no consent, approval, authorization or order of any
        court or governmental agency or body is required for the execution,
        delivery and performance by the Master Servicer of or compliance by the
        Master Servicer with this Agreement or the consummation of the
        transactions contemplated by this Agreement, except for such consents,
        approvals, authorizations and orders (if any) as have been obtained;

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                (ix)    the consummation of the transactions contemplated by
        this Agreement are in the ordinary course of business of the Master
        Servicer; and

                (x)     the Master Servicer has obtained an Errors and Omissions
        Insurance Policy and a Fidelity Bond in accordance with Section 9.02,
        each of which is in full force and effect, and each of which provides at
        least such coverage as is required hereunder.

        (b)     It is understood and agreed that the representations and
warranties set forth in this Section 9.14 shall survive the execution and
delivery of this Agreement. The Master Servicer shall indemnify the Depositor,
the Securities Administrator and the Trustee and hold them harmless against any
loss, damages, penalties, fines, forfeitures, legal fees and related costs,
judgments, and other costs and expenses resulting from any claim, demand,
defense or assertion based on or grounded upon, or resulting from, a breach of
the Master Servicer's representations and warranties contained in Section
9.14(a). Notwithstanding anything in this Agreement to the contrary, the Master
Servicer shall not be liable for special, indirect or consequential losses or
damages of any kind whatsoever (including, but not limited to, lost profits). It
is understood and agreed that the enforcement of the obligation of the Master
Servicer set forth in this Section to indemnify the Depositor, the Securities
Administrator and the Trustee as provided in this Section constitutes the sole
remedy (other than as set forth in Section 6.14) of the Depositor, the
Securities Administrator and the Trustee, respecting a breach of the foregoing
representations and warranties. Such indemnification shall survive any
termination of the Master Servicer as Master Servicer hereunder, and any
termination of this Agreement.

        Any cause of action against the Master Servicer relating to or arising
out of the breach of any representations and warranties made in this Section
shall accrue upon discovery of such breach by any of the Depositor, the Master
Servicer, the Securities Administrator or the Trustee or notice thereof by any
one of such parties to the other parties.

        (c)     It is understood and agreed that the representations and
warranties of the Depositor set forth in Sections 2.03(a)(i) through (vi) shall
survive the execution and delivery of this Agreement. The Depositor shall
indemnify the Master Servicer and hold it harmless against any loss, damages,
penalties, fines, forfeitures, legal fees and related costs, judgments, and
other costs and expenses resulting from any claim, demand, defense or assertion
based on or grounded upon, or resulting from, a breach of the Depositor's
representations and warranties contained in Sections 2.03(a)(i) through (vi). It
is understood and agreed that the enforcement of the obligation of the Depositor
set forth in this Section to indemnify the Master Servicer as provided in this
Section constitutes the sole remedy of the Master Servicer respecting a breach
by the Depositor of the representations and warranties in Sections 2.03(a)(i)
through (vi).

        Any cause of action against the Depositor relating to or arising out of
the breach of the representations and warranties made in Sections 2.03(a)(i)
through (vi) shall accrue upon discovery of such breach by either the Depositor
or the Master Servicer or notice thereof by any one of such parties to the other
parties.

        Section 9.15. Closing Certificate and Opinion.

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        On or before the Closing Date, the Master Servicer shall cause to be
delivered to the Depositor and Lehman Brothers Inc. an Opinion of Counsel, dated
the Closing Date, in form and substance reasonably satisfactory to the Depositor
and Lehman Brothers Inc., as to the due authorization, execution and delivery of
this Agreement by the Master Servicer and the enforceability thereof.

        Section 9.16. Standard Hazard and Flood Insurance Policies.

        For each Mortgage Loan (other than a Cooperative Loan), the Master
Servicer shall maintain, or cause to be maintained by each Servicer, standard
fire and casualty insurance and, where applicable, flood insurance, all in
accordance with the provisions of this Agreement and the related Servicing
Agreement, as applicable. It is understood and agreed that such insurance shall
be with insurers meeting the eligibility requirements set forth in the
applicable Servicing Agreement and that no earthquake or other additional
insurance is to be required of any Mortgagor or to be maintained on property
acquired in respect of a defaulted loan, other than pursuant to such applicable
laws and regulations as shall at any time be in force and as shall require such
additional insurance.

        Pursuant to Section 4.01, any amounts collected by the Master Servicer,
or by any Servicer, under any insurance policies maintained pursuant to this
Section 9.16 (other than amounts to be applied to the restoration or repair of
the property subject to the related Mortgage or released to the Mortgagor in
accordance with the Master Servicer's or the Servicer's normal servicing
procedures and Accepted Servicing Practices) shall be deposited into the
Collection Account, subject to withdrawal pursuant to Section 4.02. Any cost
incurred by the Master Servicer or any Servicer in maintaining any such
insurance if the Mortgagor defaults in its obligation to do so shall be added to
the amount owing under the Mortgage Loan where the terms of the Mortgage Loan so
permit; provided, however, that the addition of any such cost shall not be taken
into account for purposes of calculating the distributions to be made to
Certificateholders and shall be recoverable by the Master Servicer or such
Servicer pursuant to Section 4.02(v).

        Section 9.17. Presentment of Claims and Collection of Proceeds.

        The Master Servicer shall, or shall cause each Servicer (to the extent
provided in the applicable Servicing Agreement) to, prepare and present on
behalf of the Trustee and the Certificateholders all claims under the Insurance
Policies with respect to the Mortgage Loans, and take such actions (including
the negotiation, settlement, compromise or enforcement of the insured's claim)
as shall be necessary to realize recovery under such policies. Any proceeds
disbursed to the Master Servicer (or disbursed to a Servicer and remitted to the
Master Servicer) in respect of such policies or bonds shall be promptly
deposited in the Collection Account upon receipt, except that any amounts
realized that are to be applied to the repair or restoration of the related
Mortgaged Property or release to the Mortgagor in accordance with the Master
Servicer's or the Servicer's normal servicing procedures need not be so
deposited (or remitted).

        Section 9.18. Maintenance of the Primary Mortgage Insurance Policies.

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        (a)     The Master Servicer shall not take, or knowingly permit any
Servicer (consistent with the applicable Servicing Agreement) to take, any
action that would result in non-coverage under any applicable Primary Mortgage
Insurance Policy of any loss which, but for the actions of such Master Servicer
or Servicer, would have been covered thereunder. To the extent that coverage is
available, the Master Servicer shall use its best reasonable efforts to keep in
force and effect, or to cause each Servicer to keep in force and effect (to the
extent that the Mortgage Loan requires the Mortgagor to maintain such
insurance), primary mortgage insurance applicable to each Mortgage Loan in
accordance with the provisions of this Agreement and the related Servicing
Agreement, as applicable. The Master Servicer shall not, and shall not permit
any Servicer to, cancel or refuse to renew any such Primary Mortgage Insurance
Policy that is in effect at the date of the initial issuance of the Certificates
and is required to be kept in force hereunder except as required by a applicable
law or in accordance with the provisions of this Agreement and the related
Servicing Agreement, as applicable.

        (b)     The Master Servicer agrees to present, or to cause each Servicer
to present, on behalf of the Trustee and the Certificateholders, claims to the
insurer under any Primary Mortgage Insurance Policies and, in this regard, to
take such reasonable action as shall be necessary to permit recovery under any
Primary Mortgage Insurance Policies respecting defaulted Mortgage Loans.
Pursuant to Section 4.01, any amounts collected by the Master Servicer or any
Servicer under any Primary Mortgage Insurance Policies shall be deposited in the
Collection Account, subject to withdrawal pursuant to Section 4.02.

        Section 9.19. Trustee To Retain Possession of Certain Insurance Policies
                      and Documents.

        The Trustee (or the applicable Custodian, as directed by the Trustee),
shall retain possession and custody of the originals of the Primary Mortgage
Insurance Policies or certificate of insurance if applicable and any
certificates of renewal as to the foregoing as may be issued from time to time
as contemplated by this Agreement. Until all amounts distributable in respect of
the Certificates have been distributed in full and the Master Servicer otherwise
has fulfilled its obligations under this Agreement, the Trustee (or the
applicable Custodian, as directed by the Trustee) shall also retain possession
and custody of each Mortgage File in accordance with and subject to the terms
and conditions of this Agreement. The Master Servicer shall promptly deliver or
cause to be delivered to the Trustee (or the applicable Custodian, as directed
by the Trustee), upon the execution or receipt thereof the originals of the
Primary Mortgage Insurance Policies and any certificates of renewal thereof, and
such other documents or instruments that constitute portions of the Mortgage
File that come into the possession of the Master Servicer from time to time.

        Section 9.20. Realization Upon Defaulted Mortgage Loans.

        The Master Servicer shall use its reasonable best efforts to, or to
cause each Servicer to, foreclose upon, repossess or otherwise comparably
convert the ownership of Mortgaged Properties securing such of the Mortgage
Loans as come into and continue in default and as to which no satisfactory
arrangements can be made for collection of delinquent payments, all in
accordance with the applicable Servicing Agreement. Alternatively, the Master
Servicer may take, or authorize any Servicer to take, other actions in respect
of a defaulted Mortgage Loan,

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which may include (i) accepting a short sale (a payoff of the Mortgage Loan for
an amount less than the total amount contractually owed in order to facilitate a
sale of the Mortgaged Property by the Mortgagor) or permitting a short
refinancing (a payoff of the Mortgage Loan for an amount less than the total
amount contractually owed in order to facilitate refinancing transactions by the
Mortgagor not involving a sale of the Mortgaged Property), (ii) arranging for a
repayment plan or (iii) agreeing to a modification in accordance with Section
9.04. In connection with such foreclosure or other conversion or action, the
Master Servicer shall, consistent with Section 9.18, follow such practices and
procedures as it shall reasonably determine to be in the best interests of the
Trust Fund and the Certificateholders and which shall be consistent with its
customary practices in performing its general mortgage servicing activities;
provided that the Master Servicer shall not be liable in any respect hereunder
if the Master Servicer is acting in connection with any such foreclosure or
other conversion or action in a manner that is consistent with the provisions of
this Agreement. Neither the Master Servicer, nor any Servicer, shall be required
to expend its own funds or incur other reimbursable charges in connection with
any foreclosure, or attempted foreclosure which is not completed, or toward the
correction of any default on a related senior mortgage loan, or towards the
restoration of any property unless it shall determine (i) that such restoration
and/or foreclosure will increase the proceeds of liquidation of the Mortgage
Loan to the Certificateholders after reimbursement to itself for such expenses
or charges and (ii) that such expenses and charges will be recoverable to it
through Liquidation Proceeds or Insurance Proceeds (as provided in Section
4.02).

        Section 9.21. Compensation to the Master Servicer.

        The Master Servicer shall (i) be entitled, at its election, either (a)
to pay itself the Master Servicing Fee, in respect of the Mortgage Loans out of
any Mortgagor payment on account of interest prior to the deposit of such
payment in the Collection Account it maintains or (b) to withdraw from the
Collection Account the Master Servicing Fee to the extent permitted by Section
4.02(iv). The Master Servicer shall also be entitled, at its election, either
(a) to pay itself the Master Servicing Fee in respect of each delinquent
Mortgage Loan master serviced by it out of Liquidation Proceeds in respect of
such Mortgage Loan or other recoveries with respect thereto to the extent
permitted in Section 4.02 or (b) to withdraw from the Collection Account it
maintains the Master Servicing Fee in respect of each Liquidated Mortgage Loan
to the extent of such Liquidation Proceeds or other recoveries, to the extent
permitted by Section 4.02. Servicing compensation in the form of assumption
fees, if any, late payment charges, as collected, if any, or otherwise (but not
including any Prepayment Penalty Amount) shall be retained by the Master
Servicer (or the applicable Servicer) and shall not be deposited in the
Collection Account. If the Master Servicer does not retain or withdraw the
Master Servicing Fee from the Collection Account as provided herein, the Master
Servicer shall be entitled to direct the Trustee to pay the Master Servicing Fee
to such Master Servicer by withdrawal from the Certificate Account to the extent
that payments have been received with respect to the applicable Mortgage Loan.
The Master Servicer shall be required to pay all expenses incurred by it in
connection with its activities hereunder and shall not be entitled to
reimbursement therefor except as provided in this Agreement. Pursuant to Section
4.01(e), all income and gain realized from any investment of funds in the
Collection Account shall be for the benefit of the Master Servicer as additional
compensation. The provisions of this Section 9.21 are subject to the provisions
of Section 6.14(b).

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        Section 9.22. REO Property.

        (a)     In the event the Trust Fund acquires ownership of any REO
Property in respect of any Mortgage Loan, the deed or certificate of sale shall
be issued to the Trustee, or to its nominee, on behalf of the
Certificateholders. The Master Servicer shall use its reasonable best efforts to
sell, or, to the extent provided in the applicable Servicing Agreement, cause
the applicable Servicer to sell, any REO Property as expeditiously as possible
and in accordance with the provisions of this Agreement and the related
Servicing Agreement, as applicable, but in all events within the time period,
and subject to the conditions set forth in Article X hereof. Pursuant to its
efforts to sell such REO Property, the Master Servicer shall protect and
conserve, or cause the applicable Servicer to protect and conserve, such REO
Property in the manner and to such extent required by the applicable Servicing
Agreement, subject to Article X hereof.

        (b)     The Master Servicer shall deposit or cause to be deposited all
funds collected and received by it, or recovered from any Servicer, in
connection with the operation of any REO Property in the Collection Account.

        (c)     The Master Servicer and the applicable Servicer, upon the final
disposition of any REO Property, shall be entitled to reimbursement for any
related unreimbursed Advances as well as any unpaid Master Servicing Fees or
Servicing Fees from Liquidation Proceeds received in connection with the final
disposition of such REO Property; provided, that (without limitation of any
other right of reimbursement that the Master Servicer or any Servicer shall have
hereunder) any such unreimbursed Advances as well as any unpaid Master Servicing
Fees or Servicing Fees may be reimbursed or paid, as the case may be, prior to
final disposition, out of any net rental income or other net amounts derived
from such REO Property.

        (d)     The Liquidation Proceeds from the final disposition of the REO
Property, net of any payment to the Master Servicer and the applicable Servicer
as provided above, shall be deposited in the Collection Account on or prior to
the Determination Date in the month following receipt thereof (and the Master
Servicer shall provide written notice to the Securities Administrator upon such
deposit) and be remitted by wire transfer in immediately available funds to the
Trustee for deposit into the Certificate Account on the next succeeding Master
Servicer Remittance Date.

        Section 9.23. [Reserved].

        Section 9.24. Reports to the Trustee and the Securities Administrator.

        (a)     Not later than 30 days after each Distribution Date, the Master
Servicer shall forward to the Trustee and the Securities Administrator a
statement, deemed to have been certified by a Servicing Officer, setting forth
the status of the Collection Account maintained by the Master Servicer as of the
close of business on the related Distribution Date, indicating that all
distributions required by this Agreement to be made by the Master Servicer have
been made (or if any required distribution has not been made by the Master
Servicer, specifying the nature and status thereof) and showing, for the period
covered by such statement, the aggregate of deposits into and withdrawals from
the Collection Account maintained by the Master Servicer. Copies of such
statement shall be provided by the Master Servicer to the Depositor, Attention:
Contract

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Finance, and, upon request, any Certificateholders (or by the Securities
Administrator at the Master Servicer's expense if the Master Servicer shall fail
to provide such copies (unless (i) the Master Servicer shall have failed to
provide the Securities Administrator with such statement or (ii) the Securities
Administrator shall be unaware of the Master Servicer's failure to provide such
statement)).

        (b)     Not later than two Business Days following each Distribution
Date, the Master Servicer shall deliver to the Person designated by the
Depositor, in a format consistent with other electronic loan level reporting
supplied by the Master Servicer in connection with similar transactions, "loan
level" information with respect to the Mortgage Loans as of the related
Determination Date, to the extent that such information has been provided to the
Master Servicer by the Servicers or by the Depositor.

        (c)     All information, reports and statements prepared by the Master
Servicer under this Agreement shall be based on information supplied to the
Master Servicer by the Servicers without independent verification thereof and
the Master Servicer shall be entitled to rely on such information.

        (d)     The Master Servicer shall provide the Securities Administrator
with such information as the Securities Administrator may reasonably request in
connection with its responsibilities under Section 10.01 hereof.

        Section 9.25. Annual Officer's Certificate as to Compliance.

        (a)     The Master Servicer shall deliver to the Trustee, the Securities
Administrator and the Rating Agencies five Business Days after March 15 of each
year commencing in March 2006, an Officer's Certificate, certifying that with
respect to the period ending on the immediately preceding December 31; (i) such
Servicing Officer has reviewed the activities of such Master Servicer during the
preceding calendar year or portion thereof and its performance under this
Agreement; (ii) to the best of such Servicing Officer's knowledge, based on such
review, such Master Servicer has performed and fulfilled its duties,
responsibilities and obligations under this Agreement in all material respects
throughout such year, or, if there has been a default in the fulfillment of any
such duties, responsibilities or obligations, specifying each such default known
to such Servicing Officer and the nature and status thereof; (iii) nothing has
come to the attention of such Servicing Officer to lead such Servicing Officer
to believe that any Servicer has failed to perform any of its duties,
responsibilities and obligations under its Servicing Agreement in all material
respects throughout such year, or, if there has been a material default in the
performance or fulfillment of any such duties, responsibilities or obligations,
specifying each such default known to such Servicing Officer and the nature and
status thereof; (iv) the Master Servicer has received from each Servicer such
Servicer's annual certificate of compliance and a copy of such Servicer's annual
audit report, in each case to the extent required under the applicable Servicing
Agreement, or, if any such certificate or report has not been received by the
Master Servicer, the Master Servicer is using its best reasonable efforts to
obtain such certificate or report; and (v) such other additional items as may be
required by applicable law or regulation.

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        (b)     Copies of such statements shall be provided to any
Certificateholder upon request, by the Master Servicer or by the Trustee at the
Master Servicer's expense if the Master Servicer failed to provide such copies
(unless (i) the Master Servicer shall have failed to provide the Trustee with
such statement or (ii) the Trustee shall be unaware of the Master Servicer's
failure to provide such statement).

        Section 9.26. Annual Independent Accountants' Servicing Report.

        If the Master Servicer has, during the course of any fiscal year,
directly serviced any of the Mortgage Loans, then the Master Servicer at its
expense shall cause a nationally recognized firm of independent certified public
accountants to furnish a statement to the Trustee, the Rating Agencies and the
Depositor on or before the last day of February of each year commencing on
February 28, 2006, to the effect that, with respect to the most recently ended
fiscal year, such firm has examined certain records and documents relating to
the Master Servicer's performance of its servicing obligations under this
Agreement and pooling and servicing and trust agreements in material respects
similar to this Agreement and to each other and that, on the basis of such
examination conducted substantially in compliance with the audit program for
mortgages serviced for FHLMC or the Uniform Single Attestation Program for
Mortgage Bankers or such other attestation program as may be required by
applicable law or regulation, such firm is of the opinion that the Master
Servicer's activities have been conducted in compliance with this Agreement, or
that such examination has disclosed no material items of noncompliance except
for (i) such exceptions as such firm believes to be immaterial, (ii) such other
exceptions as are set forth in such statement and (iii) such exceptions that the
Uniform Single Attestation Program for Mortgage Bankers or the Audit Program for
Mortgages Serviced by FHLMC requires it to report. Copies of such statements
shall be provided to any Certificateholder upon request by the Master Servicer,
or by the Trustee at the expense of the Master Servicer if the Master Servicer
shall fail to provide such copies. If such report discloses exceptions that are
material, the Master Servicer shall advise the Trustee whether such exceptions
have been or are susceptible of cure, and will take prompt action to do so.

        To the extent that the Master Servicer receives an Annual Independent
Accountants' Servicing Report from any Servicer, the Master Servicer shall
forward a copy of such report to the Securities Administrator and the Trustee.
If the report is not received from the Servicer, the Trustee may request that
the Master Servicer contact the applicable Servicer to obtain such report. The
Master Servicer will not be liable for the failure of a Servicer to provide such
report.

        Section 9.27. Merger or Consolidation.

        Any Person into which the Master Servicer may be merged or consolidated,
or any Person resulting from any merger, conversion, other change in form or
consolidation to which the Master Servicer shall be a party, or any Person
succeeding to the business of the Master Servicer, shall be the successor to the
Master Servicer hereunder, without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding; provided, however, that the successor or resulting
Person to the Master Servicer shall be a Person that shall be qualified and
approved to service mortgage loans for FNMA or FHLMC and shall have a net worth
of not less than $15,000,000.

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        Section 9.28. Resignation of Master Servicer.

        Except as otherwise provided in Sections 9.27 and 9.29 hereof, the
Master Servicer shall not resign from the obligations and duties hereby imposed
on it unless it or the Trustee or the Securities Administrator determines that
the Master Servicer's duties hereunder are no longer permissible under
applicable law or are in material conflict by reason of applicable law with any
other activities carried on by it and cannot be cured. Any such determination
permitting the resignation of the Master Servicer shall be evidenced by an
Opinion of Counsel that shall be Independent to such effect delivered to the
Trustee and the Securities Administrator. In the event such determination of
ineligibility of the Master Servicer to continue in the capacity of master
servicer is made by the Master Servicer or the Trustee, no such resignation
shall become effective until a period of time not to exceed ninety days after
the Securities Administrator receives written notice thereof from the Trustee
and until the Securities Administrator shall have assumed, or a successor master
servicer shall have been appointed by the Trustee or the Securities
Administrator, as applicable, and until such successor shall have assumed, the
Master Servicer's responsibilities and obligations under this Agreement. Notice
of such resignation shall be given promptly by the Master Servicer to the
Depositor.

        Section 9.29. Assignment or Delegation of Duties by the Master Servicer.

        Except as expressly provided herein, the Master Servicer shall not
assign or transfer any of its rights, benefits or privileges hereunder to any
other Person, or delegate to or subcontract with, or authorize or appoint any
other Person to perform any of the duties, covenants or obligations to be
performed by the Master Servicer hereunder; provided, however, that the Master
Servicer shall have the right without the prior written consent of the Trustee,
the Securities Administrator, the Depositor or the Rating Agencies to delegate
or assign to or subcontract with or authorize or appoint an Affiliate of the
Master Servicer to perform and carry out any duties, covenants or obligations to
be performed and carried out by the Master Servicer hereunder. In no case,
however, shall any such delegation, subcontracting or assignment to an Affiliate
of the Master Servicer relieve the Master Servicer of any liability hereunder.
Notice of such permitted assignment shall be given promptly by the Master
Servicer to the Depositor, the Securities Administrator and the Trustee. If,
pursuant to any provision hereof, the duties of the Master Servicer are
transferred to a successor master servicer, the entire amount of the Master
Servicing Fees and other compensation payable to the Master Servicer pursuant
hereto, including amounts payable to or permitted to be retained or withdrawn by
the Master Servicer pursuant to Section 9.21 hereof, shall thereafter be payable
to such successor master servicer.

        Section 9.30. Limitation on Liability of the Master Servicer and Others.

        (a)     The Master Servicer undertakes to perform such duties and only
such duties as are specifically set forth in this Agreement.

        (b)     No provision of this Agreement shall be construed to relieve the
Master Servicer from liability for its own negligent action, its own negligent
failure to act or its own willful misconduct; provided, however, that the duties
and obligations of the Master Servicer shall be determined solely by the express
provisions of this Agreement, the Master Servicer shall not be liable except for
the performance of such duties and obligations as are specifically set forth in

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this Agreement; no implied covenants or obligations shall be read into this
Agreement against the Master Servicer and, in absence of bad faith on the part
of the Master Servicer, the Master Servicer may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein,
upon any certificates or opinions furnished to the Master Servicer and
conforming to the requirements of this Agreement.

        (c)     Neither the Master Servicer nor any of the directors, officers,
employees or agents of the Master Servicer shall be under any liability to the
Trustee or the Certificateholders for any action taken or for refraining from
the taking of any action in good faith pursuant to this Agreement, or for errors
in judgment; provided, however, that this provision shall not protect the Master
Servicer or any such person against any liability that would otherwise be
imposed by reason of willful misfeasance, bad faith or negligence in its
performance of its duties or by reason of reckless disregard for its obligations
and duties under this Agreement. The Master Servicer and any director, officer,
employee or agent of the Master Servicer shall be entitled to indemnification by
the Trust Fund and will be held harmless against any loss, liability or expense
incurred in connection with any legal action relating to this Agreement or the
Certificates other than any loss, liability or expense incurred by reason of
willful misfeasance, bad faith or negligence in the performance of his or its
duties hereunder or by reason of reckless disregard of his or its obligations
and duties hereunder. The Master Servicer and any director, officer, employee or
agent of the Master Servicer may rely in good faith on any document of any kind
prima facie properly executed and submitted by any Person respecting any matters
arising hereunder. The Master Servicer shall be under no obligation to appear
in, prosecute or defend any legal action that is not incidental to its duties to
master service the Mortgage Loans in accordance with this Agreement and that in
its opinion may involve it in any expenses or liability; provided, however, that
the Master Servicer may in its sole discretion undertake any such action that it
may deem necessary or desirable in respect to this Agreement and the rights and
duties of the parties hereto and the interests of the Certificateholders
hereunder. In such event, the legal expenses and costs of such action and any
liability resulting therefrom shall be expenses, costs and liabilities of the
Trust Fund and the Master Servicer shall be entitled to be reimbursed therefor
out of the Collection Account it maintains as provided by Section 4.02.
Notwithstanding anything herein to the contrary, neither the Master Servicer nor
the Trustee shall have any liability for the servicing of the Additional
Collateral, including, without limitation, the perfection, continuation, partial
release, release, termination, realization upon, substitution, foreclosure,
sale, or any other matter with respect to the Additional Collateral, or the
enforcement of the Additional Collateral Servicing Agreement.

        Section 9.31. Indemnification; Third-Party Claims.

        The Master Servicer agrees to indemnify the Depositor, the Securities
Administrator and the Trustee, and hold them harmless against any and all
claims, losses, penalties, fines, forfeitures, legal fees and related costs,
judgments, and any other costs, liability, fees and expenses that the Depositor,
the Securities Administrator and the Trustee may sustain as a result of the
failure of the Master Servicer to perform its duties and master service the
Mortgage Loans in compliance with the terms of this Agreement. The Depositor,
the Securities Administrator and the Trustee shall immediately notify the Master
Servicer if a claim is made by a third party with respect to this Agreement or
the Mortgage Loans entitling the Depositor, the Securities Administrator or the
Trustee to indemnification hereunder, whereupon the Master Servicer shall

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assume the defense of any such claim and pay all expenses in connection
therewith, including counsel fees, and promptly pay, discharge and satisfy any
judgment or decree which may be entered against it or them in respect of such
claim.

                                    ARTICLE X

                              REMIC ADMINISTRATION

        Section 10.01. REMIC and Grantor Trust Administration.

        (a)     As set forth in the Preliminary Statement hereto, REMIC status
shall be elected in accordance with the REMIC Provisions with respect to each of
REMIC 1, REMIC 2 and the Upper Tier REMIC. The Trustee shall make such elections
on Forms 1066 or other appropriate federal tax or information return for the
taxable year ending on the last day of the calendar year in which the
Certificates are issued. For the purposes of such elections, each of the REMIC 1
Regular Interests is hereby designated as a regular interest in REMIC 1. Each of
the REMIC 2 Regular Interests is hereby designated as a regular interest in
REMIC 2. Each of the REMIC 3 Regular Interests is hereby designated as a regular
interest in the Upper Tier REMIC. The Class LT1-R Interest is hereby designated
as the sole residual interest in REMIC 1. The Class LT2-R Interest is hereby
designated as the sole residual interest in REMIC 2. The REMIC 3 Residual
Interest is hereby designated as the sole residual interest in the Upper Tier
REMIC. The Class R Certificate evidences ownership of the Class LT1-R Interest,
the Class LT2-R Interest and the REMIC 3 Residual Interest. It is the intention
of the parties hereto that the segregated pool of assets consisting of any
collections of Prepayment Penalty Amounts with respect to Pool 1, Pool 2, Pool
3, Pool 4, Pool 5 and Pool 6 constitute a grantor trust for federal income tax
purposes. The Trustee, by its execution and delivery hereof, acknowledges the
assignment to it of the Grantor Trust I Assets and declares that it holds and
will hold such assets in trust for the exclusive use and benefit of all present
and future Holders of the Class P Certificates. The rights of Holders of the
Class P Certificates to receive distributions from the proceeds of the Grantor
Trust I Assets and all ownership interests of such Holders in and to such
distributions, shall be as set forth in this Agreement.

        (b)     The Closing Date is hereby designated as the "Startup Day" of
each REMIC within the meaning of section 860G(a)(9) of the Code. The latest
possible maturity date for purposes of Treasury Regulation 1.860G-1(a)(4) is the
"Latest Possible Maturity Date".

        (c)     The Securities Administrator shall pay any and all tax related
expenses (not including taxes) of each REMIC and each Grantor Trust, including
but not limited to any professional fees or expenses related to audits or any
administrative or judicial proceedings with respect to such REMIC or such
Grantor Trust that involve the Internal Revenue Service or state tax
authorities, but only to the extent that (i) such expenses are ordinary or
routine expenses, including expenses of a routine audit but not expenses of
litigation (except as described in (ii)); or (ii) such expenses or liabilities
(including taxes and penalties) are attributable to the negligence or willful
misconduct of the Securities Administrator in fulfilling its duties hereunder
(including its duties as tax return preparer). The Securities Administrator
shall be entitled to reimbursement from the Certificate Account of the expenses
to the extent (x) provided in clause (i) above and (y) in the case of expenses
relating to a REMIC provided for hereunder, such

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expenses are "unanticipated expenses" within the meaning of Treasury Regulations
Section 1.860G-1(b)(3)(ii).

        (d)     The Securities Administrator shall prepare and file, and the
Trustee shall sign, all of each REMIC's federal and state tax and information
returns as such REMIC's direct representative. The Securities Administrator
shall prepare and file, and the Trustee shall sign, all of the tax returns in
respect of each Grantor Trust. The Securities Administrator shall comply with
such requirement by filing Form 1041. The expenses of preparing and filing such
returns shall be borne by the Securities Administrator. If any Disqualified
Organization acquires any Ownership Interest in a Residual Certificate, then the
Securities Administrator will upon request provide to the Internal Revenue
Service, and to the persons specified in Sections 860E(e)(3) and (6) of the
Code, such information as required in Section 860D(a)(6)(B) of the Code needed
to compute the tax imposed under Section 860E(e) of the Code on transfers of
residual interests to disqualified organizations and the Securities
Administrator will be reimbursed by the Trust for all expenses incurred
therewith solely from amounts received for the provision of such information
from persons specified in Sections 860E(e)(3) and (6) of the Code.

        (e)     The Securities Administrator or its designee shall perform on
behalf of each REMIC and each Grantor Trust all reporting and other tax
compliance duties that are the responsibility of such REMIC or Grantor Trust
under the Code, the REMIC Provisions, or other compliance guidance issued by the
Internal Revenue Service or any state or local taxing authority. Among its other
duties, if required by the Code, the REMIC Provisions, or other such guidance,
the Securities Administrator shall provide (i) to the Treasury or other
governmental authority such information as is necessary for the application of
any tax relating to the transfer of a Residual Certificate to any disqualified
person or organization and (ii) to the Certificateholders such information or
reports as are required by the Code or REMIC Provisions.

        (f)     The Trustee, the Securities Administrator, the Master Servicer
and the Holders of Certificates shall take any action or cause any REMIC
hereunder to take any action necessary to create or maintain the status of such
REMIC as a REMIC under the REMIC Provisions and shall assist each other as
necessary to create or maintain such status. Neither the Trustee, the Securities
Administrator, the Master Servicer nor the Holder of any Residual Certificate
shall take any action, cause any REMIC to take any action or fail to take (or
fail to cause to be taken) any action that, under the REMIC Provisions, if taken
or not taken, as the case may be, could (i) endanger the status of any such
REMIC as a REMIC or (ii) result in the imposition of a tax upon any such REMIC
(including but not limited to the tax on prohibited transactions as defined in
Code Section 860F(a)(2) and the tax on prohibited contributions set forth on
Section 860G(d) of the Code) (either such event, an "Adverse REMIC Event")
unless the Trustee, the Securities Administrator and the Master Servicer have
received an Opinion of Counsel (at the expense of the party seeking to take such
action) to the effect that the contemplated action will not endanger such status
or result in the imposition of such a tax. In addition, prior to taking any
action with respect to any such REMIC or the assets therein, or causing any such
REMIC to take any action, which is not expressly permitted under the terms of
this Agreement, any Holder of a Residual Certificate will consult with the
Trustee, the Securities Administrator and the Master Servicer, or their
respective designees, in writing, with respect to whether such action could
cause an Adverse REMIC Event to occur with respect to such REMIC, and no such
Person shall take any such action or cause such REMIC to take any such action as
to which the Trustee, the Securities

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Administrator or the Master Servicer has advised it in writing that an Adverse
REMIC Event could occur.

        (g)     The Securities Administrator shall prepare or cause to be
prepared on behalf of the Trust Fund, based upon information calculated in
accordance with this Agreement pursuant to instructions given by the Depositor,
the Trustee shall sign and the Securities Administrator shall file, federal tax
returns and appropriate state income tax returns and such other returns as may
be required by applicable law relating to the Trust Fund, and shall file any
other documents to the extent required by applicable state tax law (to the
extent such documents are in the Securities Administrator's possession). The
Securities Administrator shall forward copies to the Depositor of all such
returns and Form 1099 supplemental tax information and such other information
within the control of the Securities Administrator as the Depositor may
reasonably request in writing, and shall forward to the Trustee for distribution
to each Certificateholder such forms and furnish such information within the
control of the Securities Administrator as are required by the Code and the
REMIC Provisions to be furnished to them, and will prepare and furnish to the
Trustee for distribution to Certificateholders Form 1099 (supplemental tax
information) (or otherwise furnish information within the control of the
Securities Administrator) to the extent required by applicable law. The Master
Servicer will indemnify the Securities Administrator and the Trustee for any
liability of or assessment against the Securities Administrator or the Trustee,
as applicable, resulting from any error in any of such tax or information
returns directly resulting from errors in the information provided by such
Master Servicer.

        (h)     The Securities Administrator shall prepare and file with the
Internal Revenue Service ("IRS"), on behalf of each of REMIC 1, REMIC 2 and the
Upper Tier REMIC, an application on IRS Form SS-4. The Securities Administrator,
upon receipt from the IRS of the Notice of Taxpayer Identification Number
Assigned for each REMIC, shall promptly forward copies of such notices to the
Trustee, the Master Servicer and the Depositor. The Securities Administrator
will file an IRS Form 8811 for the REMICs created hereunder. The Trustee shall
sign such forms referred to in this Section 10.01(h) as may be required under
applicable law.

        (i)     Each Holder of a Residual Certificate shall pay when due any and
all taxes imposed on the related REMIC by federal or state governmental
authorities. To the extent that such Trust taxes are not paid by a Residual
Certificateholder, the Securities Administrator shall pay any remaining REMIC
taxes out of current or future amounts otherwise distributable to the Holder of
the Residual Certificate in such REMIC or, if no such amounts are available, out
of other amounts held in the Collection Account, and shall reduce amounts
otherwise payable to holders of regular interests in such REMIC, as the case may
be.

        (j)     The Securities Administrator shall, for federal income tax
purposes, maintain books and records with respect to each REMIC on a calendar
year and on an accrual basis.

        (k)     No additional contributions of assets shall be made to any
REMIC, except as expressly provided in this Agreement with respect to Qualified
Substitute Mortgage Loans.

        (l)     Neither the Securities Administrator nor the Master Servicer
shall enter into any arrangement by which any REMIC will receive a fee or other
compensation for services.

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        (m)     Upon the request of any Rating Agency, the Securities
Administrator shall deliver to such Rating Agency an Officer's Certificate
stating the Securities Administrator's compliance with the provisions of this
Section 10.01.

        (n)     It is intended that the rights of the Class B1, Class B2, Class
B3, Class B4, Class B5, Class B7, Class B10 and Class B11 Certificates to
receive payments in respect of Floating Rate Certificate Shortfalls shall be
treated as rights in respect of interest rate cap contracts written by the Class
CX Certificateholders in favor of the holders of the Class B1, Class B2, Class
B3, Class B4, Class B5, Class B7, Class B10 and Class B11 Certificates and shall
be accounted for as property separate and apart from the REMIC 3 Regular
Interests represented by the Class B1, Class B2, Class B3, Class B4, Class B5,
Class B7, Class B10 and Class B11 Certificates. This provision is intended to
comply with the requirements of Treasury Regulations Section 1.860G-2(i) for the
treatment of property rights coupled with regular interests to be separately
respected and shall be interpreted consistently with such regulation. The
Holders of the Class B1, Class B2, Class B3, Class B4, Class B5, Class B7, Class
B10 and Class B11 Certificates agree, by their acceptance of such Certificates,
that they will take tax reporting positions that allocate no more than a nominal
value to the right to receive payments in respect of Floating Rate Certificate
Shortfalls. The Holders of the Class CX Certificates agree, by their acceptance
of such Certificates, to take tax reporting positions consistent with
allocations by the Holders of the Class B1, Class B2, Class B3, Class B4, Class
B5, Class B7, Class B10 and Class B11 Certificates of no more than a nominal
value to the right to receive payments in respect of Floating Rate Certificate
Shortfalls. For information reporting purposes, it will be assumed that such
rights have no value. Each payment made to the Class B1, Class B2, Class B3,
Class B4, Class B5, Class B7, Class B10 and Class B11 Certificates in respect of
Floating Rate Certificate Shortfalls shall be treated for federal income tax
purposes as having been distributed to the Class CX Certificates and then paid
by the holders of the Class CX Certificates to the holders of the relevant Class
B1, Class B2, Class B3, Class B4, Class B5, Class B7, Class B10 and Class B11
Certificates. Each holder or beneficial owner of a Class B1, Class B2, Class B3,
Class B4, Class B5, Class B7, Class B10 and Class B11 Certificates, by virtue of
its acquisition of such Certificate or a beneficial interest in such
Certificate, agrees to adopt tax reporting positions consistent with the
characterization of payments made to the Class B1, Class B2, Class B3, Class B4,
Class B5, Class B7, Class B10 and Class B11 Certificates in respect of Floating
Rate Certificate Shortfalls as payments in respect of interest rate cap
agreements written by the holders of the Class CX Certificates. The parties
hereto intend that rights under the Cap Agreements and the ownership of the Cap
Agreement Reserve Fund represented by the Class CX Certificates, together with
the related obligations to make payments to the Class B1, Class B2, Class B3,
Class B4, Class B5, Class B7, Class B10 and Class B11 Certificates, shall be
treated as a grantor trust under the Code and the provisions hereof shall be
interpreted consistently with this intention. In furtherance of such intention,
the Trustee shall (i) furnish to the holders of the Class CX Certificates
information regarding items of income, gain, loss and deduction of such grantor
trust and (ii) file or cause to be filed with the Internal Revenue Service Form
1041 (together with any necessary attachments) or such other form as may be
applicable and (iii) comply with such information reporting obligations with
respect to payments from such grantor trusts as may be applicable under the Code
or other applicable tax laws.

        It is intended that the rights of the Class B10, Class B10X, Class B11
and Class B11X Certificates to receive payments in respect of Excess REMIC
Payments shall be treated as rights

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in respect of interest rate cap contracts written by the Class Z
Certificateholders in favor of the holders of the Class B10, Class B10X, Class
B11 and Class B11X Certificates. Such rights shall be accounted for as property
separate and apart from the REMIC 3 Regular Interests represented by the Class
B10, Class B10X, Class B11 and Class B11X Certificates. This provision is
intended to comply with the requirements of Treasury Regulations Section
1.860G-2(i) for the treatment of property rights coupled with regular interests
to be separately respected and shall be interpreted consistently with such
regulation. Each payment made to the Class B10, Class B10X, Class B11 and Class
B11X Certificates in respect of Excess REMIC Payments shall be treated for
federal income tax purposes as having been distributed to the Class Z
Certificates and then paid by the holders of the Class Z Certificates to the
holders of the relevant Class B10, Class B10X, Class B11 and Class B11X
Certificates. Each holder or beneficial owner of a Class B10, Class B10X, Class
B11 and Class B11X and Class Z Certificate, by virtue of its acquisition of such
Certificate or a beneficial interest in such Certificate, agrees to adopt tax
reporting positions consistent with the characterization of payments made to the
Class B10, Class B10X, Class B11 and Class B11X Certificates in respect of
Excess REMIC Payments as payments in respect of interest rate cap agreements
written by the holders of the Class Z Certificates. The parties hereto intend
that the REMIC 3 Regular Interests represented by the Class Z Certificates,
together with the related obligations to make payments to the Class B10, Class
B10X, Class B11 and Class B11X Certificates shall be treated as a grantor trust
under the Code and the provisions hereof shall be interpreted consistently with
this intention. In furtherance of such intention, the Trustee shall (i) furnish
to the holders of the Class Z Certificates information regarding items of
income, gain, loss and deduction of such grantor trust and (ii) file or cause to
be filed with the Internal Revenue Service Form 1041 (together with any
necessary attachments) or such other form as may be applicable and (iii) comply
with such information reporting obligations with respect to payments from such
grantor trust as may be applicable under the Code or other applicable tax laws.

        (o)     The Trustee shall provide the Securities Administrator such
information as the Securities Administrator may reasonably request in connection
with its responsibilities under this Section 10.01.

        Section 10.02. Prohibited Transactions and Activities.

        Neither the Depositor, the Master Servicer nor the Trustee shall sell,
dispose of, or substitute for any of the Mortgage Loans, except in a disposition
pursuant to (i) the foreclosure of a Mortgage Loan, (ii) the bankruptcy of the
Trust Fund, (iii) the termination of each REMIC pursuant to Article VII of this
Agreement, (iv) a substitution pursuant to Article II of this Agreement, or (v)
a repurchase of Mortgage Loans pursuant to Article II of this Agreement, nor
acquire any assets for any REMIC, nor sell or dispose of any investments in the
Certificate Account for gain, nor accept any contributions to any REMIC after
the Closing Date, unless it has received an Opinion of Counsel (at the expense
of the party causing such sale, disposition, or substitution) that such
disposition, acquisition, substitution, or acceptance will not (a) affect
adversely the status of such REMIC as a REMIC or of the Certificates other than
the Residual Certificates as the regular interests therein, (b) affect the
distribution of interest or principal on the Certificates, (c) result in the
encumbrance of the assets transferred or assigned to the Trust Fund (except
pursuant to the provisions of this Agreement) or (d) cause such REMIC to be

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subject to a tax on prohibited transactions or prohibited contributions pursuant
to the REMIC Provisions.

        Section 10.03. Indemnification with Respect to Certain Taxes and Loss of
                       REMIC Status.

        In the event that a REMIC fails to qualify as a REMIC, loses its status
as a REMIC, or incurs federal, state or local taxes as a result of a prohibited
transaction or prohibited contribution under the REMIC Provisions due to the
negligent performance by the Trustee or the Securities Administrator, as
applicable, of its duties and obligations set forth herein, the Trustee or the
Securities Administrator, as applicable, shall indemnify the Holder of the
Residual Certificate against any and all losses, claims, damages, liabilities or
expenses ("Losses") resulting from such negligence; provided, however, that
neither the Trustee nor the Securities Administrator shall be liable for any
such Losses attributable to the action or inaction of the Master Servicer, the
Depositor, or the Holder of such Residual Certificate, as applicable, nor for
any such Losses resulting from misinformation provided by the Holder of such
Residual Certificate on which the Trustee or the Securities Administrator, as
applicable, has relied. The foregoing shall not be deemed to limit or restrict
the rights and remedies of the Holder of such Residual Certificate now or
hereafter existing at law or in equity. Notwithstanding the foregoing, however,
in no event shall the Trustee or the Securities Administrator have any liability
(1) for any action or omission that is taken in accordance with and in
compliance with the express terms of, or which is expressly permitted by the
terms of, this Agreement, (2) for any Losses other than arising out of a
negligent performance by the Trustee or the Securities Administrator,
respectively, of its duties and obligations set forth herein, and (3) for any
special or consequential damages to Certificateholders (in addition to payment
of principal and interest on the Certificates).

        Section 10.04. REO Property.

        (a)     Notwithstanding any other provision of this Agreement, the
Master Servicer, acting on behalf of the Trustee hereunder, shall not (except to
the extent provided in the applicable Servicing Agreement), permit any Servicer
to, rent, lease, or otherwise earn income on behalf of any REMIC with respect to
any REO Property which might cause such REO Property to fail to qualify as
"foreclosure" property within the meaning of section 860G(a)(8) of the Code or
result in the receipt by any REMIC of any "income from non-permitted assets"
within the meaning of section 860F(a)(2) of the Code or any "net income from
foreclosure property" which is subject to tax under the REMIC Provisions unless
the Master Servicer has advised, or has caused the applicable Servicer to
advise, the Trustee and the Securities Administrator in writing to the effect
that, under the REMIC Provisions, such action would not adversely affect the
status of any REMIC as a REMIC and any income generated for such REMIC by the
REO Property would not result in the imposition of a tax upon such REMIC.

        (b)     The Master Servicer shall make, or shall cause the applicable
Servicer to make, reasonable efforts to sell any REO Property for its fair
market value. In any event, however, the Master Servicer shall, or shall cause
the applicable Servicer to, dispose of any REO Property within three years from
the end of the calendar year of its acquisition by the Trust Fund unless the
Trustee has received a grant of extension from the Internal Revenue Service to
the effect that, under the REMIC Provisions and any relevant proposed
legislation and under applicable state law, the applicable REMIC may hold REO
Property for a longer period without adversely

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affecting the REMIC status of such REMIC or causing the imposition of a Federal
or state tax upon such REMIC. If the Trustee has received such an extension ,
then (a) the Trustee shall provide a copy of such extension to the Master
Servicer and Securities Administrator and (b) the Trustee, or the Master
Servicer, acting on its behalf hereunder, shall, or shall cause the applicable
Servicer to, continue to attempt to sell the REO Property for its fair market
value for such period longer than three years as such extension permits (the
"Extended Period"). If the Trustee has not received such an extension and the
Trustee, or the Master Servicer acting on behalf of the Trustee hereunder, or
the applicable Servicer is unable to sell the REO Property within 33 months
after its acquisition by the Trust Fund or if the Trustee has received such an
extension, and the Trustee, or the Master Servicer acting on behalf of the
Trustee hereunder, is unable to sell the REO Property within the period ending
three months before the close of the Extended Period, the Master Servicer shall,
or shall cause the applicable Servicer to, before the end of the three year
period or the Extended Period, as applicable, (i) purchase such REO Property at
a price equal to the REO Property's fair market value or (ii) auction the REO
Property to the highest bidder (which may be the Master Servicer) in an auction
reasonably designed to produce a fair price prior to the expiration of the
three-year period or the Extended Period, as the case may be.

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

        Section 11.01. Binding Nature of Agreement; Assignment.

        This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns.

        Section 11.02. Entire Agreement.

        This Agreement contains the entire agreement and understanding among the
parties hereto with respect to the subject matter hereof, and supersedes all
prior and contemporaneous agreements, understandings, inducements and
conditions, express or implied, oral or written, of any nature whatsoever with
respect to the subject matter hereof. The express terms hereof control and
supersede any course of performance and/or usage of the trade inconsistent with
any of the terms hereof.

        Section 11.03. Amendment.

        (a)     This Agreement may be amended from time to time by the
Depositor, the Master Servicer, the Securities Administrator and the Trustee,
without notice to or the consent of any of the Holders, (i) to cure any
ambiguity, (ii) to cause the provisions herein to conform to or be consistent
with or in furtherance of the statements made with respect to the Certificates,
the Trust Fund or this Agreement in any Offering Document; or to correct or
supplement any provision herein which may be inconsistent with any other
provisions herein or with the provisions of any Servicing Agreement, (iii) to
make any other provisions with respect to matters or questions arising under
this Agreement or (iv) to add, delete, or amend any provisions to the extent
necessary or desirable to comply with any requirements imposed by the Code and
the REMIC

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Provisions. No such amendment effected pursuant to the preceding sentence shall,
as evidenced by an Opinion of Counsel, adversely affect the status of any REMIC
created pursuant to this Agreement, nor shall such amendment effected pursuant
to clause (iii) of such sentence adversely affect in any material respect the
interests of any Holder. Prior to entering into any amendment without the
consent of Holders pursuant to this paragraph, the Trustee may require an
Opinion of Counsel (at the expense of the party requesting such amendment) to
the effect that such amendment is permitted under this paragraph. Any such
amendment shall be deemed not to adversely affect in any material respect any
Holder, if the Trustee receives written confirmation from each Rating Agency
that such amendment will not cause such Rating Agency to reduce, qualify or
withdraw the then current rating assigned to the Certificates (and any Opinion
of Counsel requested by the Trustee in connection with any such amendment may
rely expressly on such confirmation as the basis therefor).

        (b)     This Agreement may also be amended from time to time by the
Depositor, the Master Servicer, the Securities Administrator and the Trustee
with the consent of the Holders of not less than 66 2/3% of the Class Principal
Amount (or Percentage Interest) of each Class of Certificates affected thereby
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement or of modifying in any
manner the rights of the Holders; provided, however, that no such amendment
shall be made unless the Trustee receives an Opinion of Counsel, at the expense
of the party requesting the change, that such change will not adversely affect
the status of any REMIC as a REMIC or cause a tax to be imposed on such REMIC;
and provided further, that no such amendment may (i) reduce in any manner the
amount of, or delay the timing of, payments received on Mortgage Loans which are
required to be distributed on any Certificate, without the consent of the Holder
of such Certificate or (ii) reduce the aforesaid percentages of Class Principal
Amount (or Percentage Interest) of Certificates of each Class, the Holders of
which are required to consent to any such amendment without the consent of the
Holders of 100% of the Class Principal Amount (or Class Notional Amount) of each
Class of Certificates affected thereby. For purposes of this paragraph,
references to "Holder" or "Holders" shall be deemed to include, in the case of
any Class of Book-Entry Certificates, the related Certificate Owners.

        (c)     Promptly after the execution of any such amendment, the Trustee
shall furnish written notification of the substance of such amendment to each
Holder, the Depositor and to the Rating Agencies.

        (d)     It shall not be necessary for the consent of Holders under this
Section 11.03 to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Holders shall be subject to such reasonable regulations as
the Trustee may prescribe.

        (e)     Notwithstanding anything to the contrary in any Servicing
Agreement, the Trustee shall not consent to any amendment of any Servicing
Agreement except pursuant to the standards provided in this Section with respect
to amendment of this Agreement.

        Section 11.04. Voting Rights.

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        Except to the extent that the consent of all affected Certificateholders
is required pursuant to this Agreement, with respect to any provision of this
Agreement requiring the consent of Certificateholders representing specified
percentages of aggregate outstanding Certificate Principal Amount (or Notional
Amount), Certificates owned by the Depositor, the Securities Administrator, the
Master Servicer, the Trustee or any Servicer or Affiliates thereof are not to be
counted so long as such Certificates are owned by the Depositor, the Securities
Administrator, the Master Servicer, the Trustee or any Servicer or Affiliates
thereof.

        Section 11.05. Provision of Information.

        (a)     For so long as any of the Certificates of any Series or Class
are "restricted securities" within the meaning of Rule 144(a)(3) under the Act,
each of the Depositor, the Master Servicer and the Trustee agree to cooperate
with each other to provide to any Certificateholders and to any prospective
purchaser of Certificates designated by such Certificateholder, upon the request
of such Certificateholder or prospective purchaser, any information required to
be provided to such holder or prospective purchaser to satisfy the condition set
forth in Rule 144A(d)(4) under the Act. Any reasonable, out-of-pocket expenses
incurred by the Trustee or the Securities Administrator in providing such
information shall be reimbursed by the Depositor.

        (b)     The Securities Administrator will make available to any person
to whom a Prospectus was delivered, upon the request of such person specifying
the document or documents requested, (i) a copy (excluding exhibits) of any
report on Form 8-K or Form 10-K filed with the Securities and Exchange
Commission pursuant to Section 6.20(c) and (ii) a copy of any other document
incorporated by reference in the Prospectus to the extent in the possession of
the Securities Administrator. Any reasonable out-of-pocket expenses incurred by
the Securities Administrator in providing copies of such documents shall be
reimbursed by the Depositor.

        (c)     [Reserved].

        Section 11.06. Governing Law.

        THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO
CONFLICT OF LAWS PRINCIPLES APPLIED IN NEW YORK (OTHER THAN SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW).

        Section 11.07. Notices.

        All demands, notices and communications hereunder shall be in writing
and shall be deemed to have been duly given when delivered to such party at the
relevant address, facsimile number or electronic mail address set forth below
(or at such other address, facsimile number or electronic mail address as such
party may designate from time to time by written notice in accordance with this
Section 11.07): received by (a) in the case of the Depositor, Structured Asset
Securities Corporation, 745 Seventh Avenue, 7th Floor, New York, New York 10019,
Attention: Mark Zusy, (b) in the case of the Securities Administrator, Wells
Fargo Bank, National Association, P.O. Box 98, Columbia, Maryland 21046 (or, for
overnight deliveries,

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9062 Old Annapolis Road, Columbia, Maryland 21045) (SARM 2005-1) or for purposes
of presentment of Certificates for transfer, exchange and/or payment, the
Securities Administrator's Corporate Trust Office, (c) in the case of the
Certificate Registrar, its Corporate Trust Office, (d) in the case of the
Trustee, HSBC Bank USA, National Association, 452 Fifth Avenue, New York, New
York 10018, Attention: Issuer Services and (e) in the case of the Master
Servicer, Aurora Loan Services LLC, 327 Inverness Drive South, Englewood,
Colorado, 80112, Mail Stop Code 3195; Attention: Master Servicing or as to each
party such other address as may hereafter be furnished by such party to the
other parties in writing. Any notice required or permitted to be mailed to a
Holder shall be given by first class mail, postage prepaid, at the address of
such Holder as shown in the Certificate Register. Any notice so mailed within
the time prescribed in this Agreement shall be conclusively presumed to have
been duly given, whether or not the Holder receives such notice.

        Section 11.08. Severability of Provisions.

        If any one or more of the covenants, agreements, provisions or terms of
this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

        Section 11.09. Indulgences; No Waivers.

        Neither the failure nor any delay on the part of a party to exercise any
right, remedy, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or
privilege preclude any other or further exercise of the same or of any other
right, remedy, power or privilege, nor shall any waiver of any right, remedy,
power or privilege with respect to any occurrence be construed as a waiver of
such right, remedy, power or privilege with respect to any other occurrence. No
waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted such waiver.

        Section 11.10. Headings Not To Affect Interpretation.

        The headings contained in this Agreement are for convenience of
reference only, and they shall not be used in the interpretation hereof.

        Section 11.11. Benefits of Agreement.

        Nothing in this Agreement or in the Certificates, express or implied,
shall give to any Person, other than the parties to this Agreement and their
successors hereunder and the Holders of the Certificates, any benefit or any
legal or equitable right, power, remedy or claim under this Agreement, except to
the extent specified in Section 11.14.

        Section 11.12. Special Notices to the Rating Agencies.

        (a)     The Depositor shall give prompt notice to the Rating Agencies of
the occurrence of any of the following events of which it has notice:

                                       144
<PAGE>

                (i)     any amendment to this Agreement pursuant to Section
        11.03;

                (ii)    any Assignment by the Master Servicer of its rights
        hereunder or delegation of its duties hereunder;

                (iii)   the occurrence of any Event of Default described in
        Section 6.14;

                (iv)    any notice of termination given to the Master Servicer
        pursuant to Section 6.14 and any resignation of the Master Servicer
        hereunder;

                (v)     the appointment of any successor to any Master Servicer
        pursuant to Section 6.14; and

                (vi)    the making of a final payment pursuant to Section 7.02.

        (b)     All notices to the Rating Agencies provided for this Section
shall be in writing and sent by first class mail, telecopy or overnight courier,
as follows:

                If to Moody's, to:

                Moody's Investors Service, Inc.
                99 Church Street
                New York, New York 10007

                If to S&P, to:

                Standard & Poor's
                55 Water Street
                New York, New York  10041

        (c)     The Securities Administrator shall provide or make available to
the Rating Agencies reports prepared pursuant to Section 4.03. In addition, the
Securities Administrator shall, at the expense of the Trust Fund, make available
to each Rating Agency such information as such Rating Agency may reasonably
request regarding the Certificates or the Trust Fund, to the extent that such
information is reasonably available to the Securities Administrator.

        Section 11.13. Counterparts.

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

        Section 11.14. Transfer of Servicing.

        The Seller agrees that it shall provide written notice to the Trustee,
the Securities Administrator and the Master Servicer thirty days prior to any
transfer or assignment by the Seller of its rights under any Servicing Agreement
or of the servicing thereunder or delegation of its rights or duties thereunder
or any portion thereof to any Person other than the initial Servicer under such
Servicing Agreement; provided that the Seller shall not be required to provide
prior

                                       145
<PAGE>

notice of any transfer of servicing that occurs within three months following
the Closing Date to an entity that is a Servicer on the Closing Date. In
addition, the ability of the Seller to transfer or assign its rights and
delegate its duties under a Servicing Agreement or to transfer the servicing
thereunder to a successor servicer shall be subject to the following conditions:

                (i)     Satisfaction of the conditions to such transfer as set
        forth in the Servicing Agreement including, without limitation, receipt
        of written consent of the Master Servicer to such transfer;

                (ii)    Such successor servicer must be qualified to service
        loans for FNMA or FHLMC;

                (iii)   Such successor servicer must satisfy the seller/servicer
        eligibility standards in the applicable Servicing Agreement, exclusive
        of any experience in mortgage loan origination, and must be reasonably
        acceptable to the Master Servicer, whose approval shall not be
        unreasonably withheld;

                (iv)    Such successor servicer must execute and deliver to the
        Trustee and the Master Servicer an agreement, in form and substance
        reasonably satisfactory to the Trustee, the Securities Administrator and
        the Master Servicer, that contains an assumption by such successor
        servicer of the due and punctual performance and observance of each
        covenant and condition to be performed and observed by the applicable
        Servicer under the applicable Servicing Agreement or, in the case of a
        transfer of servicing to a party that is already a Servicer pursuant to
        this Agreement, an agreement to add the related Mortgage Loans to the
        Servicing Agreement already in effect with such Servicer;

                (v)     If the successor servicer is not a Servicer of Mortgage
        Loans at the time of such transfer, there must be delivered to the
        Trustee and the Securities Administrator a letter from each Rating
        Agency to the effect that such transfer of servicing will not result in
        a qualification, withdrawal or downgrade of the then-current rating of
        any of the Certificates;

                (vi)    The Seller shall, at its cost and expense, take such
        steps, or cause the terminated Servicer to take such steps, as may be
        necessary or appropriate to effectuate and evidence the transfer of the
        servicing of the Mortgage Loans to such successor servicer, including,
        but not limited to, the following: (A) to the extent required by the
        terms of the Mortgage Loans and by applicable federal and state laws and
        regulations, the Seller shall cause the prior Servicer to timely mail to
        each obligor under a Mortgage Loan any required notices or disclosures
        describing the transfer of servicing of the Mortgage Loans to the
        successor servicer; (B) prior to the effective date of such transfer of
        servicing, the Seller shall cause the prior Servicer to transmit to any
        related insurer notification of such transfer of servicing; (C) on or
        prior to the effective date of such transfer of servicing, the Seller
        shall cause the prior Servicer to deliver to the successor servicer all
        Mortgage Loan Documents and any related records or materials; (D) on or
        prior to the effective date of such transfer of servicing, the Seller
        shall cause the prior Servicer to transfer to the successor servicer,
        or, if such transfer occurs after a Remittance

                                       146
<PAGE>

        Date but before the next succeeding Master Servicer Remittance Date, to
        the Master Servicer, all funds held by the applicable Servicer in
        respect of the Mortgage Loans; (E) on or prior to the effective date of
        such transfer of servicing, the Seller shall cause the prior Servicer
        to, after the effective date of the transfer of servicing to the
        successor servicer, continue to forward to such successor servicer,
        within one Business Day of receipt, the amount of any payments or other
        recoveries received by the prior Servicer, and to notify the successor
        servicer of the source and proper application of each such payment or
        recovery; and (F) the Seller shall cause the prior Servicer to, after
        the effective date of transfer of servicing to the successor servicer,
        continue to cooperate with the successor servicer to facilitate such
        transfer in such manner and to such extent as the successor servicer may
        reasonably request.

                      [SIGNATURE PAGE IMMEDIATELY FOLLOWS]

                                       147
<PAGE>

        IN WITNESS WHEREOF, the Depositor, the Securities Administrator, the
Trustee and the Master Servicer have caused their names to be signed hereto by
their respective officers hereunto duly authorized as of the day and year first
above written.

                                       STRUCTURED ASSET SECURITIES CORPORATION,
                                                     as Depositor

                                       By:
                                            -----------------------------------
                                            Name:  Michael C. Hitzmann
                                            Title: Vice President

                                       HSBC BANK USA, NATIONAL ASSOCIATION,
                                          not in its individual capacity, but
                                          solely as Trustee

                                       By:
                                            -----------------------------------
                                            Name:  Wendy Zhang
                                            Title: Assistant Vice President

                                       WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                          as Securities Administrator

                                       By:
                                            -----------------------------------
                                            Name:  Sandra Whalen
                                            Title: Vice President

                                       AURORA LOAN SERVICES LLC,
                                          as Master Servicer

                                       By:
                                            -----------------------------------
                                            Name:  E. Todd Whittemore
                                            Title: Executive Vice President

Solely for purposes of Section 11.14,
accepted and agreed to by:

LEHMAN BROTHERS HOLDINGS INC.

By:
        ----------------------------
        Name:  Stanley P. Labanowski
        Title: Senior Vice President

<PAGE>

                                    EXHIBIT A

                              FORMS OF CERTIFICATES

                             [INTENTIONALLY OMITTED]

                                       A-1
<PAGE>

                                   EXHIBIT B-1

                          FORM OF INITIAL CERTIFICATION

                                                                     Date

HSBC Bank USA, National Association
425 Fifth Avenue
New York, New York 10018

Structured Asset Securities Corporation
745 Seventh Avenue, 7th Floor
New York, New York 10019

Aurora Loan Services LLC
327 Inverness Drive South
Englewood, Colorado 80112

        Re:     Trust Agreement (the "Trust Agreement"), dated as of January 1,
                2005 among Structured Asset Securities Corporation, as
                Depositor, Aurora Loan Services LLC, as Master Servicer, Wells
                Fargo Bank, National Association, as Securities Administrator
                and HSBC Bank USA, National Association, as Trustee, with
                respect to Structured Adjustable Rate Mortgage Loan Trust
                Mortgage Pass-Through Certificates, Series 2005-1

Ladies and Gentlemen:

        In accordance with Section 2.02(a) of the Trust Agreement, subject to
review of the contents thereof, the undersigned, as Custodian on behalf of the
Trustee, hereby certifies that it (or its custodian) has received the documents
listed in Section 2.01(b) of the Trust Agreement for each Mortgage File
pertaining to each Mortgage Loan listed on Schedule A, to the Trust Agreement,
subject to any exceptions noted on Schedule I hereto.

        Capitalized words and phrases used herein and not otherwise defined
herein shall have the respective meanings assigned to them in the Trust
Agreement. This Certificate is subject in all respects to the terms of Section
2.02 of the Trust Agreement and the Trust Agreement sections cross-referenced
therein.

                                           [Custodian], on behalf of
                                           HSBC Bank USA, National Association,
                                           as Trustee

                                           By:
                                                -------------------------------
                                                Name:
                                                Title:

                                      B-2-1
<PAGE>

                                   EXHIBIT B-2

                          FORM OF INTERIM CERTIFICATION

                                                                     Date

HSBC Bank USA, National Association
425 Fifth Avenue
New York, New York 10018

Structured Asset Securities Corporation
745 Seventh Avenue, 7th Floor
New York, New York 10019

Aurora Loan Services LLC
327 Inverness Drive South
Englewood, Colorado 80112

        Re:     Trust Agreement (the "Trust Agreement"), dated as of January 1,
                2005 among Structured Asset Securities Corporation, as
                Depositor, Aurora Loan Services LLC, as Master Servicer, Wells
                Fargo Bank, National Association, as Securities Administrator
                and HSBC Bank USA, National Association, as Trustee, with
                respect to Structured Adjustable Rate Mortgage Loan Trust
                Mortgage Pass-Through Certificates, Series 2005-1

Ladies and Gentlemen:

        In accordance with Section 2.02(b) of the Trust Agreement, the
undersigned, as Custodian on behalf of the Trustee, hereby certifies that as to
each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
Loan paid in full or listed on Schedule I hereto) it (or its custodian) has
received the applicable documents listed in Section 2.01(b) of the Trust
Agreement.

        The undersigned hereby certifies that as to each Mortgage Loan
identified on the Mortgage Loan Schedule, other than any Mortgage Loan listed on
Schedule I hereto, it has reviewed the documents identified above and has
determined that each such document appears regular on its face and appears to
relate to the Mortgage Loan identified in such document.

        Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Trust Agreement. This Certificate is qualified
in all respects by the terms of said

                                      B-3-1
<PAGE>

Trust Agreement including, but not limited to, Section 2.02(b).

                                           [Custodian], on behalf of
                                           HSBC Bank USA, National Association,
                                           as Trustee

                                           By:
                                                -------------------------------
                                                Name:
                                                Title:

                                      B-3-2
<PAGE>

                                   EXHIBIT B-3

                           FORM OF FINAL CERTIFICATION

                                                                     Date

HSBC Bank USA, National Association
425 Fifth Avenue
New York, New York 10018

Structured Asset Securities Corporation
745 Seventh Avenue, 7th Floor
New York, New York 10019

Aurora Loan Services LLC
327 Inverness Drive South
Englewood, Colorado 80112

        Re:     Trust Agreement (the "Trust Agreement"), dated as of January 1,
                2005 among Structured Asset Securities Corporation, as
                Depositor, Aurora Loan Services LLC, as Master Servicer, Wells
                Fargo Bank, National Association, as Securities Administrator
                and HSBC Bank USA, National Association, as Trustee, with
                respect to Structured Adjustable Rate Mortgage Loan Trust
                Mortgage Pass-Through Certificates, Series 2005-1

Ladies and Gentlemen:

        In accordance with Section 2.02(d) of the Trust Agreement, the
undersigned, as Custodian on behalf of the Trustee, hereby certifies that as to
each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
Loan paid in full or listed on Schedule I hereto) it (or its custodian) has
received the applicable documents listed in Section 2.01(b) of the Trust
Agreement.

        The undersigned hereby certifies that as to each Mortgage Loan
identified on the Mortgage Loan Schedule, other than any Mortgage Loan listed on
Schedule I hereto, it has reviewed the documents listed above and has determined
that each such document appears to be complete and, based on an examination of
such documents, the information set forth in the Mortgage Loan Schedule is
correct.

        Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Trust Agreement. This Certificate is qualified
in all respects by the terms of said

                                      B-4-1
<PAGE>

Trust Agreement.

                                           [Custodian], on behalf of
                                           HSBC Bank USA, National Association,
                                           as Trustee

                                           By:
                                                -------------------------------
                                                Name:
                                                Title:

                                      B-3-2
<PAGE>

                                   EXHIBIT B-4

                               FORM OF ENDORSEMENT

        Pay to the order of HSBC Bank USA, National Association, as trustee (the
"Trustee") under the Trust Agreement dated as of January 1, 2005, among
Structured Asset Securities Corporation, as Depositor, Aurora Loan Services LLC,
as Master Servicer, Wells Fargo Bank, National Association, as Securities
Administrator and the Trustee relating to Structured Adjustable Rate Mortgage
Loan Trust Mortgage Pass-Through Certificates, Series 2005-1, without recourse.

                                                -------------------------------
                                                [current signatory on note]

                                           By:
                                                -------------------------------
                                                Name:
                                                Title:

                                       C-1
<PAGE>

                                    EXHIBIT C

                  REQUEST FOR RELEASE OF DOCUMENTS AND RECEIPT

                                                                     Date

[Addressed to Trustee
or, if applicable, custodian]

        In connection with the administration of the mortgages held by you as
Trustee under a certain Trust Agreement dated as of January 1, 2005 among
Structured Asset Securities Corporation, as Depositor, Aurora Loan Services LLC,
as Master Servicer, Wells Fargo Bank, National Association, as Securities
Administrator and you, as Trustee (the "Trust Agreement"), the undersigned
Master Servicer hereby requests a release of the Mortgage File held by you as
Trustee with respect to the following described Mortgage Loan for the reason
indicated below.

        Mortgagor's Name:

        Address:

        Loan No.:

        Reason for requesting file:

1.      Mortgage Loan paid in full. (The Master Servicer hereby certifies that
        all amounts received in connection with the loan have been or will be
        credited to the Collection Account or the Certificate Account (whichever
        is applicable) pursuant to the Trust Agreement.)

2.      The Mortgage Loan is being foreclosed.

3.      Mortgage Loan substituted. (The Master Servicer hereby certifies that a
        Qualifying Substitute Mortgage Loan has been assigned and delivered to
        you along with the related Mortgage File pursuant to the Trust
        Agreement.)

4.      Mortgage Loan repurchased. (The Master Servicer hereby certifies that
        the Purchase Price has been credited to the Collection Account or the
        Certificate Account (whichever is applicable) pursuant to the Trust
        Agreement.)

5.      Other. (Describe)

        The undersigned acknowledges that the above Mortgage File will be held
by the undersigned in accordance with the provisions of the Trust Agreement and
will be returned to you within ten (10) days of our receipt of the Mortgage
File, except if the Mortgage Loan has

                                      D-1-1
<PAGE>

been paid in full, or repurchased or substituted for a Qualifying Substitute
Mortgage Loan (in which case the Mortgage File will be retained by us
permanently) and except if the Mortgage Loan is being foreclosed (in which case
the Mortgage File will be returned when no longer required by us for such
purpose).

        Capitalized terms used herein shall have the meanings ascribed to them
in the Trust Agreement.

                                                -------------------------------
                                                [Name of Master Servicer]

                                           By:
                                                -------------------------------
                                                Name:
                                                Title: Servicing Officer

                                      D-1-2
<PAGE>

                                   EXHIBIT D-1

          FORM OF RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEREE)

STATE OF                   )
                           )  ss.:
COUNTY OF                  )

        [NAME OF OFFICER], ___________ being first duly sworn, deposes and says:

That he [she] is [title of officer] ________________________ of [name of
Purchaser] _________________________________________ (the "Purchaser"), a
_______________________ [description of type of entity] duly organized and
existing under the laws of the [State of __________] [United States], on behalf
of which he [she] makes this affidavit.

1.      That the Purchaser's Taxpayer Identification Number is ______________.

2.      That the Purchaser is not a "disqualified organization" within the
        meaning of Section 860E(e)(5) of the Internal Revenue Code of 1986, as
        amended (the "Code") and will not be a "disqualified organization" as of
        __________________ [date of transfer], and that the Purchaser is not
        acquiring a Residual Certificate (as defined in the Agreement) for the
        account of, or as agent (including a broker, nominee, or other
        middleman) for, any person or entity from which it has not received an
        affidavit substantially in the form of this affidavit. For these
        purposes, a "disqualified organization" means the United States, any
        state or political subdivision thereof, any foreign government, any
        international organization, any agency or instrumentality of any of the
        foregoing (other than an instrumentality if all of its activities are
        subject to tax and a majority of its board of directors is not selected
        by such governmental entity), any cooperative organization furnishing
        electric energy or providing telephone service to persons in rural areas
        as described in Code Section 1381(a)(2)(C), any "electing large
        partnership" within the meaning of Section 775 of the Code, or any
        organization (other than a farmers' cooperative described in Code
        Section 521) that is exempt from federal income tax unless such
        organization is subject to the tax on unrelated business income imposed
        by Code Section 511.

3.      That the Purchaser is not, and on _______________ [date of transfer]
        will not be, an employee benefit plan or arrangement subject to Title I
        of the Employee Retirement Income Security Act of 1974, as amended
        ("ERISA"), a plan subject to Section 4975 of the Internal Revenue Code
        of 1986, as amended (the "Code") or a plan subject to any provisions
        under any federal, state, local, non-U.S. or other laws or regulations
        that are substantively similar to the foregoing provisions of ERISA or
        the Code (collectively, a "Plan"), and is not directly or indirectly
        acquiring the Residual Certificate for, on behalf of or with any assets
        of any such Plan.

                                      D-2-1
<PAGE>

4.      That the Purchaser hereby acknowledges that under the terms of the Trust
        Agreement (the "Agreement") among Structured Asset Securities
        Corporation, HSBC Bank USA, National Association, as Trustee, Wells
        Fargo Bank, National Association, as Securities Administrator and Aurora
        Loan Services LLC, as Master Servicer, dated as of January 1, 2005, no
        transfer of a Residual Certificate shall be permitted to be made to any
        person unless the Depositor and the Trustee have received a certificate
        from such transferee containing the representations in paragraphs 2, 3
        and 4 hereof.

5.      That the Purchaser does not hold REMIC residual securities as nominee to
        facilitate the clearance and settlement of such securities through
        electronic book-entry changes in accounts of participating organizations
        (such entity, a "Book-Entry Nominee").

6.      That the Purchaser does not have the intention to impede the assessment
        or collection of any federal, state or local taxes legally required to
        be paid with respect to such Residual Certificate, and that the
        Purchaser has provided financial statements or other financial
        information requested by the transferor in connection with the transfer
        of the Residual Certificate in order to permit the transferor to assess
        the financial capability of the Purchaser to pay such taxes.

7.      That the Purchaser will not transfer a Residual Certificate to any
        person or entity (i) as to which the Purchaser has actual knowledge that
        the requirements set forth in paragraph 2, paragraph 5 or paragraph 9
        hereof are not satisfied or that the Purchaser has reason to believe
        does not satisfy the requirements set forth in paragraph 6 hereof, and
        (ii) without obtaining from the prospective Purchaser an affidavit
        substantially in this form and providing to the Trustee a written
        statement substantially in the form of Exhibit D-2 to the Agreement.

8.      That the Purchaser understands that, as the holder of a Residual
        Certificate, the Purchaser may incur tax liabilities in excess of any
        cash flows generated by the interest and that it intends to pay taxes
        associated with holding such Residual Certificate as they become due.

9.      That the Purchaser (i) is a U.S. Person or (ii) is a Non-U.S. Person
        that holds a Residual Certificate in connection with the conduct of a
        trade or business within the United States and has furnished the
        transferor and the Trustee with an effective Internal Revenue Service
        Form W-8 ECI (Certificate of Foreign Person's Claim for Exemption From
        Withholding on Income Effectively Connected with the Conduct of a Trade
        or Business in the United States) or successor form at the time and in
        the manner required by the Code. "Non-U.S. Person" means any person
        other than (i) a citizen or resident of the United States; (ii) a
        corporation (or entity treated as a corporation for tax purposes)
        created or organized in the United States or under the laws of the
        United States or of any state thereof, including, for this purpose, the
        District of Columbia; (iii) a partnership (or entity treated as a
        partnership for tax purposes) organized in the United States or under
        the laws of the United States or of any state thereof, including, for
        this purpose, the District of Columbia (unless provided otherwise by
        future Treasury regulations); (iv) an estate whose income is includible
        in gross income for United States income tax purposes regardless of its
        source; (v) a trust, if a court within the United States is able to
        exercise

<PAGE>

        primary supervision over the administration of the trust and one or more
        U.S. Persons have authority to control all substantial decisions of the
        trust or; (vi) and, to the extent provided in Treasury regulations,
        certain trusts in existence prior to August 20, 1996 that are treated as
        United States persons prior to such date and elect to continue to be
        treated as United States persons.

10.     That the Purchaser agrees to such amendments of the Trust Agreement as
        may be required to further effectuate the restrictions on transfer of
        any Residual Certificate to such a "disqualified organization," an agent
        thereof, a Book-Entry Nominee, or a person that does not satisfy the
        requirements of paragraph 6 and paragraph 9 hereof.

11.     That the Purchaser consents to the designation of the Securities
        Administrator as its agent to act as "tax matters person" of the Trust
        Fund pursuant to the Trust Agreement.

        Terms used in this transfer affidavit which are not otherwise defined
herein have the respective meanings assigned thereto in the Trust Agreement.

<PAGE>

        IN WITNESS WHEREOF, the Purchaser has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
[title of officer] this _____ day of __________, 20__.

                                                -------------------------------
                                                [name of Purchaser]

                                           By:
                                                -------------------------------
                                                Name:
                                                Title:

        Personally appeared before me the above-named [name of officer]
________________, known or proved to me to be the same person who executed the
foregoing instrument and to be the [title of officer] _________________ of the
Purchaser, and acknowledged to me that he [she] executed the same as his [her]
free act and deed and the free act and deed of the Purchaser.

        Subscribed and sworn before me this _____ day of __________, 20__.

NOTARY PUBLIC

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

COUNTY OF_____________________

STATE OF______________________

My commission expires the _____ day of __________, 20__.

<PAGE>

                                   EXHIBIT D-2

          FORM OF RESIDUAL CERTIFICATE TRANSFER AFFIDAVIT (TRANSFEROR)

                                                                     Date

        Re:     Structured Adjustable Rate Mortgage Loan Trust Mortgage
                Pass-Through Certificates, Series 2005-1

        _______________________ (the "Transferor") has reviewed the attached
affidavit of _____________________________ (the "Transferee"), and has no actual
knowledge that such affidavit is not true and has no reason to believe that the
information contained in paragraph 6 thereof is not true, and has no reason to
believe that the Transferee has the intention to impede the assessment or
collection of any federal, state or local taxes legally required to be paid with
respect to a Residual Certificate. In addition, the Transferor has conducted a
reasonable investigation at the time of the transfer and found that the
Transferee had historically paid its debts as they came due and found no
significant evidence to indicate that the Transferee will not continue to pay
its debts as they become due.

                                                Very truly yours,

                                                -------------------------------
                                                Name:
                                                Title:

                                       E-1
<PAGE>

                                    EXHIBIT E

                              SERVICING AGREEMENTS

                             [INTENTIONALLY OMITTED]

                                       E-1
<PAGE>

                                    EXHIBIT F

                     FORM OF RULE 144A TRANSFER CERTIFICATE

        Re:     Structured Adjustable Rate Mortgage Loan Trust Mortgage
                Pass-Through Certificates, Series 2005-1

        Reference is hereby made to the Trust Agreement (the "Trust Agreement"),
dated as of January 1, 2005 among Structured Asset Securities Corporation, as
Depositor, Aurora Loan Services LLC, as Master Servicer Wells Fargo Bank,
National Association, as Securities Administrator and HSBC Bank USA, National
Association, as Trustee. Capitalized terms used but not defined herein shall
have the meanings given to them in the Trust Agreement.

        This letter relates to $_________ initial Certificate Principal Amount
of Class Certificates which are held in the form of Definitive Certificates
registered in the name of (the "Transferor"). The Transferor has requested a
transfer of such Definitive Certificates for Definitive Certificates of such
Class registered in the name of [insert name of transferee].

        In connection with such request, and in respect of such Certificates,
the Transferor hereby certifies that such Certificates are being transferred in
accordance with (i) the transfer restrictions set forth in the Trust Agreement
and the Certificates and (ii) Rule 144A under the Securities Act to a purchaser
that the Transferor reasonably believes is a "qualified institutional buyer"
within the meaning of Rule 144A purchasing for its own account or for the
account of a "qualified institutional buyer", which purchaser is aware that the
sale to it is being made in reliance upon Rule 144A, in a transaction meeting
the requirements of Rule 144A and in accordance with any applicable securities
laws of any state of the United States or any other applicable jurisdiction.

        This certificate and the statements contained herein are made for the
benefit of the Trustee, the Securities Administrator, the Placement Agent and
the Depositor.

                                                -------------------------------
                                                [Name of Transferor]

                                           By:
                                                -------------------------------
                                                Name:
                                                Title:

Dated: ___________, ________

                                       G-1
<PAGE>

                                    EXHIBIT G

                         FORM OF PURCHASER'S LETTER FOR
                        INSTITUTIONAL ACCREDITED INVESTOR

                                                                     Date

Dear Sirs:

        In connection with our proposed purchase of $______________ principal
amount of Structured Adjustable Rate Mortgage Loan Trust Mortgage Pass-Through
Certificates, Series 2005-1 (the "Privately Offered Certificates") of Structured
Asset Securities Corporation (the "Depositor") which are held in the form of
Definitive Certificates, we confirm that:

1.      We understand that the Privately Offered Certificates have not been, and
        will not be, registered under the Securities Act of 1933, as amended
        (the "Securities Act"), and may not be sold except as permitted in the
        following sentence. We agree, on our own behalf and on behalf of any
        accounts for which we are acting as hereinafter stated, that if we
        should sell any Privately Offered Certificates within two years of the
        later of the date of original issuance of the Privately Offered
        Certificates or the last day on which such Privately Offered
        Certificates are owned by the Depositor or any affiliate of the
        Depositor (which includes the Placement Agent) we will do so only (A) to
        the Depositor, (B) to "qualified institutional buyers" (within the
        meaning of Rule 144A under the Securities Act) in accordance with Rule
        144A under the Securities Act ("QIBs"), (C) pursuant to the exemption
        from registration provided by Rule 144 under the Securities Act, or (D)
        to an institutional "accredited investor" within the meaning of Rule
        501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act that
        is not a QIB (an "Institutional Accredited Investor") which, prior to
        such transfer, delivers to the Trustee under the Trust Agreement (the
        "Trust Agreement"), dated as of January 1, 2005 among Structured Asset
        Securities Corporation, as Depositor, Aurora Loan Services LLC, as
        Master Servicer, Wells Fargo Bank, National Association, as Securities
        Administrator and HSBC Bank USA, National Association, as Trustee, a
        signed letter in the form of this letter; and we further agree, in the
        capacities stated above, to provide to any person purchasing any of the
        Privately Offered Certificates from us a notice advising such purchaser
        that resales of the Privately Offered Certificates are restricted as
        stated herein.

2.      We understand that, in connection with any proposed resale of any
        Privately Offered Certificates to an Institutional Accredited Investor,
        we will be required to furnish to the Trustee, the Certificate Registrar
        and the Depositor a certification from such transferee in the form
        hereof to confirm that the proposed sale is being made pursuant to an
        exemption from, or in a transaction not subject to, the registration
        requirements of the Securities Act. We further understand that the
        Privately Offered Certificates purchased by us will bear a legend to the
        foregoing effect.

                                       H-1
<PAGE>

3.      We are acquiring the Privately Offered Certificates for investment
        purposes and not with a view to, or for offer or sale in connection
        with, any distribution in violation of the Securities Act. We have such
        knowledge and experience in financial and business matters as to be
        capable of evaluating the merits and risks of our investment in the
        Privately Offered Certificates, and we and any account for which we are
        acting are each able to bear the economic risk of such investment.

4.      We are an Institutional Accredited Investor and we are acquiring the
        Privately Offered Certificates purchased by us for our own account or
        for one or more accounts (each of which is an Institutional Accredited
        Investor) as to each of which we exercise sole investment discretion.

5.      We have received such information as we deem necessary in order to make
        our investment decision.

6.      If we are acquiring an ERISA-Restricted Certificate, we are not a Plan
        and we are not acquiring the ERISA-Restricted Certificate for, on behalf
        of or with any assets of a Plan, except as may be permitted pursuant to
        Section 3.03(d) of the Trust Agreement.

        Terms used in this letter which are not otherwise defined herein have
the respective meanings assigned thereto in the Trust Agreement.

        You and the Depositor, the Securities Administrator and the Trustee are
entitled to rely upon this letter and are irrevocably authorized to produce this
letter or a copy hereof to any interested party in any administrative or legal
proceeding or official inquiry with respect to the matters covered hereby.

                                                Very truly yours,

                                                -------------------------------
                                                [Purchaser]

                                           By
                                                -------------------------------
                                                Name:
                                                Title:

                                       H-2
<PAGE>

                                    EXHIBIT H

                       [FORM OF ERISA TRANSFER AFFIDAVIT]

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

        The undersigned, being first duly sworn, deposes and says as follows:

7.      The undersigned is the ______________________ of (the "Investor"), a
        [corporation duly organized] and existing under the laws of __________,
        on behalf of which he makes this affidavit.

8.      The Investor (A) is not, and on _______________ [date of transfer] will
        not be, an employee benefit plan or arrangement subject to Title I of
        the Employee Retirement Income Security Act of 1974, as amended
        ("ERISA"), a plan subject to Section 4975 of the Internal Revenue Code
        of 1986, as amended (the "Code") or a plan subject to any provisions
        under any federal, state, local, non-U.S. or other laws or regulations
        that are substantively similar to the foregoing provisions of ERISA or
        the Code ("Similar Law") (collectively, a "Plan"), and is not directly
        or indirectly acquiring the Certificate for, on behalf of or with any
        assets of any such Plan, (B) if the Certificate has been the subject of
        an ERISA-Qualifying Underwriting, is an insurance company that is
        acquiring the Certificate with assets of an "insurance company general
        account" as defined in Section V(E) of Prohibited Transaction Class
        Exemption ("PTCE") 95-60 and the acquisition and holding of the
        Certificate are covered and exempt under Sections I and III of PTCE
        95-60, or (C) solely in the case of a Definitive Certificate, shall
        herewith deliver an Opinion of Counsel satisfactory to the Certificate
        Registrar, the Trustee and the Depositor, and upon which the Trustee,
        the Certificate Registrar and the Depositor shall be entitled to rely,
        to the effect that the acquisition and holding of such Certificate by
        the Investor will not result in a nonexempt prohibited transaction under
        Title I of ERISA or Section 4975 of the Code, or a violation of Similar
        Law, and will not subject the Trustee, the Master Servicer, the
        Securities Administrator, the Certificate Registrar, any Servicer or the
        Depositor to any obligation in addition to those undertaken by such
        entities in the Trust Agreement, which Opinion of Counsel shall not be
        an expense of the Trustee, the Master Servicer, the Securities
        Administrator, the Certificate Registrar, any Servicer or the Depositor.

9.      The Investor hereby acknowledges that under the terms of the Trust
        Agreement (the "Agreement") among Structured Asset Securities
        Corporation, as Depositor, Aurora Loan Services LLC, as Master Servicer,
        Wells Fargo Bank, National Association and HSBC Bank USA, National
        Association, as Trustee, dated as of January 1, 2005, no transfer of the
        ERISA-Restricted Certificates (other than the Class R Certificate) shall
        be permitted to be made to any person unless the Depositor, the
        Certificate Registrar and Trustee have received an affidavit from such
        transferee in the form hereof or an opinion of counsel as provided
        herein.

                                       I-1
<PAGE>

10.     Capitalized terms used but not defined herein shall have the meanings
        given to such terms in the Trust Agreement.

<PAGE>

        IN WITNESS WHEREOF, the Investor has caused this instrument to be
executed on its behalf, pursuant to proper authority, by its duly authorized
officer, duly attested, this ____ day of _______________, 20__.

                                                -------------------------------
                                                [Investor]

                                           By:
                                                -------------------------------
                                                Name:
                                                Title:

ATTEST:

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

STATE OF                 )
                         )  ss.:
COUNTY OF                )

        Personally appeared before me the above-named ___________________, known
or proved to me to be the same person who executed the foregoing instrument and
to be the _________________ of the Investor, and acknowledged that he executed
the same as his free act and deed and the free act and deed of the Investor.

        Subscribed and sworn before me this _____ day of ___________ 20___.

                                                -------------------------------
                                                NOTARY PUBLIC

                                                My commission expires the
                                                ____ day of __________, 20__.

<PAGE>

                                    EXHIBIT I

                            MONTHLY REMITTANCE ADVICE

                             [INTENTIONALLY OMITTED]

                                       I-1
<PAGE>

                                    EXHIBIT J

                      MONTHLY ELECTRONIC DATA TRANSMISSION

                             [INTENTIONALLY OMITTED]

                                       J-1
<PAGE>

                                    EXHIBIT K

                              CUSTODIAL AGREEMENTS

                             [INTENTIONALLY OMITTED]

                                       I-1
<PAGE>

                                   EXHIBIT L-1

                          FORM OF TRANSFER CERTIFICATE
                  FOR TRANSFER FROM RESTRICTED GLOBAL SECURITY
                         TO REGULATION S GLOBAL SECURITY
                    (Transfers pursuant to Section 3.03(h)(B)
                                of the Agreement)

                Re:     Structured Adjustable Rate Mortgage Loan Trust Mortgage
                        Loan Trust Mortgage Pass-Through Certificates, Series
                        2005-1

        Reference is hereby made to the Trust Agreement (the "Agreement") among
Structured Asset Securities Corporation, as Depositor, Aurora Loan Services LLC,
as Master Servicer, Wells Fargo Bank, National Association and HSBC Bank USA,
National Association, as Trustee, dated as of January 1, 2005. Capitalized terms
used but not defined herein shall have the meanings given to them in the
Agreement.

        This letter relates to U.S. $ aggregate principal amount of Securities
which are held in the form of a Restricted Global Security with DTC in the name
of [name of transferor] (the "Transferor") to effect the transfer of the
Securities in exchange for an equivalent beneficial interest in a Regulation S
Global Security.

        In connection with such request, the Transferor does hereby certify that
such transfer has been effected in accordance with the transfer restrictions set
forth in the Agreement and the Securities and in accordance with Rule 904 of
Regulation S, and that:

                a.      the offer of the Securities was not made to a person in
                        the United States;

                b.      at the time the buy order was originated, the transferee
        was outside the United States or the Transferor and any person acting on
        its behalf reasonably believed that the transferee was outside the
        United States;

                c.      no directed selling efforts have been made in
        contravention of the requirements of Rule 903 or 904 of Regulation S, as
        applicable;

                d.      the transaction is not part of a plan or scheme to evade
        the registration requirements of the United States Securities Act of
        1933, as amended; and

                e.      the transferee is not a U.S. person (as defined in
        Regulation S).

        The Depositor, the Securities Administrator and the Trustee are entitled
to rely upon this letter and are irrevocably authorized to produce this letter
or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby.
Terms used in this certificate have the meanings set forth in Regulation S.

                                                [Name of Transferor]

                                      L-2-1
<PAGE>

                                           By:
                                                -------------------------------
                                                Name:
                                                Title:

Date: _____________, ____

                                      L-2-2
<PAGE>

                                   EXHIBIT L-2

                    FORM OF TRANSFER CERTIFICATE FOR TRANSFER
                        FROM REGULATION S GLOBAL SECURITY
                          TO RESTRICTED GLOBAL SECURITY
                    (Transfers pursuant to Section 3.03(h)(C)
                                of the Agreement)

                Re:     Structured Adjustable Rate Mortgage Loan Trust Mortgage
                        Pass-Through Certificates, Series 2005-1

        Reference is hereby made to the Trust Agreement (the "Agreement") among
Structured Asset Securities Corporation, as Depositor, Aurora Loan Services LLC,
as Master Servicer, Wells Fargo Bank, National Association and HSBC Bank USA,
National Association, as Trustee, dated as of January 1, 2005. Capitalized terms
used but not defined herein shall have the meanings given to them in the
Agreement.

        This letter relates to U.S. $ aggregate principal amount of Securities
which are held in the form of a Regulations S Global Security in the name of
[name of transferor] (the "Transferor") to effect the transfer of the Securities
in exchange for an equivalent beneficial interest in a Restricted Global
Security.

        In connection with such request, and in respect of such Securities, the
Transferor does hereby certify that such Securities are being transferred in
accordance with (i) the transfer restrictions set forth in the Agreement and the
Securities and (ii) Rule 144A under the United States Securities Act of 1933, as
amended, to a transferee that the Transferor reasonably believes is purchasing
the Securities for its own account or an account with respect to which the
transferee exercises sole investment discretion, the transferee and any such
account is a qualified institutional buyer within the meaning of Rule 144A, in a
transaction meeting the requirements of Rule 144A and in accordance with any
applicable securities laws of any state of the United States or any other
jurisdiction.

                                                [Name of Transferor]

                                           By:
                                                -------------------------------
                                                Name:
                                                Title:

Date: ______________, ___

                                       M-1
<PAGE>

                                    EXHIBIT M

                     FORM OF CERTIFICATION TO BE PROVIDED TO
             THE DEPOSITOR AND THE MASTER SERVICER BY THE SECURITIES
                                  ADMINISTRATOR

Structured Asset Securities Corporation
745 7th Avenue, 7th Floor
New York, New York 10019

Aurora Loan Services LLC
327 Inverness Drive South
Englewood, Colorado 80112

Re:     Structured Adjustable Rate Mortgage Loan Trust, Mortgage Pass-Through
        Certificates, Series 2005-1

I, [[Identify the certifying individual]], a [[title]] of Wells Fargo Bank,
National Association, as Securities Administrator, hereby certify to Aurora Loan
Services, Inc., as master servicer (the "Master Servicer"), and its officers,
directors and affiliates, and with the knowledge and intent that they will rely
upon this certification, that:

(i)     I have reviewed the annual report on Form 10-K for the fiscal year [[
        ]], and all reports on Form 8-K containing distribution reports filed in
        respect of periods included in the year covered by that annual report,
        relating to the above referenced trust;

(ii)    Based on my knowledge, the information in these distribution reports
        prepared by the Securities Administrator, taken as a whole, does not
        contain any untrue statement of a material fact or omit to state
        material fact necessary to make the statements made, in light of the
        circumstances under which such statements were made, not misleading as
        of the last day of the period covered by that annual report; and

(iii)   Based on my knowledge, the distribution information required to be
        provided by Securities Administrator under the Trust Agreement is
        included in these reports.

Date:

                                         Wells Fargo Bank, National Association,
                                         as Securities Administrator

                                         By:
                                               -------------------------------
                                               Name:
                                               Title:

                                       N-1
<PAGE>

                                    EXHIBIT N

                              FORM OF CAP AGREEMENT

                             [INTENTIONALLY OMITTED]

                                       N-1
<PAGE>

                                   SCHEDULE A
                             MORTGAGE LOAN SCHEDULE

                             [INTENTIONALLY OMITTED]

                                    Sch. B-1EX-4.1:

 

EXHIBIT 4.1

COINMACH SERVICE CORP.,

as Issuer,

THE BANK OF NEW YORK,

as Trustee and Collateral Agent,

and

The Subsidiary Guarantors Party Hereto from Time to Time,

as Subsidiary Guarantors

INDENTURE

Dated as of November 24, 2004

11% Senior Secured Notes due 2024

 

 

CROSS-REFERENCE TABLE

	 	 	 	 
	TIA	 	 	Indenture
	Section	 	 	Section
	 
	310 
	(a)(1)	 	7.10
	 
	(a)(2)	 	7.10
	 
	(a)(3)	 	N.A.
	 
	(a)(4)	 	N.A.
	 
	(a)(5)	 	7.10
	 
	(b)	 	7.08; 7.10; 12.02
	 
	(b)(1)	 	7.10
	 
	(c)	 	N.A.
	311 
	(a)	 	7.11
	 
	(b)	 	7.11
	 
	(c)	 	N.A.
	312 
	(a)	 	2.05
	 
	(b)	 	12.03
	 
	(c)	 	12.03
	313 
	(a)	 	7.06
	 
	(b)(1)	 	N.A.
	 
	(b)(2)	 	7.06
	 
	(c)	 	7.06; 12.02
	 
	(d)	 	7.06
	314 
	(a)	 	4.06; 4.08; 11.02; 12.04
	 
	(b)	 	11.02
	 
	(c)(1)	 	12.04
	 
	(c)(2)	 	1204
	 
	(c)(3)	 	N.A.
	 
	(d)	 	12.04; 12.05
	 
	(e)	 	N.A.
	315 
	(a)	 	7.01(b)
	 
	(b)	 	7.05; 12.02
	 
	(c)	 	7.01(a)
	 
	(d)	 	7.01(c)
	 
	(e)	 	6.11
	316 
	(a)(last sentence)	 	2.09
	 
	(a)(1)(A)	 	6.05
	 
	(a)(1)(B)	 	6.04
	 
	(a)(2)	 	N.A.
	 
	(b)	 	6.07
	 
	(c)	 	9.04
	317 
	(a)(1)	 	6.08
	 
	(a)(2)	 	6.09
	 
	(b)	 	2.04
	318 
	(a)	 	12.01
	 
	(c)	 	12.01

	N.A. means Not Applicable
	 
	NOTE:	 	This Cross-Reference Table shall not, for any purpose, be
deemed to be a part of the Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE ONE

	 	 	 	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE

	 	 	 	 	 	 	 
	SECTION 1.01.	 	Definitions
	 	 	1	 
	SECTION 1.02.	 	Incorporation by Reference of TIA
	 	 	34	 
	SECTION 1.03.	 	Rules of Construction
	 	 	35	 
	 	 	 	 	 	 	 
	ARTICLE TWO

	 	 	 	 	 	 	 
	THE NOTES

	 	 	 	 	 	 	 
	SECTION 2.01.	 	Form and Dating
	 	 	35	 
	SECTION 2.02.	 	Execution and Authentication; Aggregate Principal Amount
	 	 	36	 
	SECTION 2.03.	 	Registrar and Paying Agent
	 	 	37	 
	SECTION 2.04.	 	Paying Agent To Hold Assets in Trust
	 	 	38	 
	SECTION 2.05.	 	Holder Lists
	 	 	38	 
	SECTION 2.06.	 	Transfer and Exchange
	 	 	38	 
	SECTION 2.07.	 	Replacement Notes
	 	 	41	 
	SECTION 2.08.	 	Outstanding Notes
	 	 	41	 
	SECTION 2.09.	 	Treasury Notes
	 	 	42	 
	SECTION 2.10.	 	Temporary Notes
	 	 	42	 
	SECTION 2.11.	 	Cancellation
	 	 	42	 
	SECTION 2.12.	 	CUSIP Number
	 	 	43	 
	SECTION 2.13.	 	Deposit of Moneys
	 	 	43	 
	SECTION 2.14.	 	Physical Notes
	 	 	43	 
	SECTION 2.15.	 	Special Transfer Provisions
	 	 	44	 
	SECTION 2.16.	 	Tax Treatment
	 	 	46	 
	SECTION 2.17.	 	Formation of IDSs
	 	 	46	 
	 	 	 	 	 	 	 
	ARTICLE THREE

	 	 	 	 	 	 	 
	REDEMPTION

	 	 	 	 	 	 	 
	SECTION 3.01.	 	Notices to Trustee
	 	 	47	 
	SECTION 3.02.	 	Selection of Notes To Be Redeemed
	 	 	47	 
	SECTION 3.03.	 	Notice of Redemption.
	 	 	47	 
	SECTION 3.04.	 	Effect of Notice of Redemption
	 	 	48	 
	SECTION 3.05.	 	Deposit of Redemption Price
	 	 	48	 
	SECTION 3.06.	 	Notes Redeemed in Part
	 	 	49	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE FOUR

	 	 	 	 	 	 	 
	COVENANTS

	 	 	 	 	 	 	 
	SECTION 4.01.	 	Payment of Notes
	 	 	49	 
	SECTION 4.02.	 	Maintenance of Office or Agency
	 	 	49	 
	SECTION 4.03.	 	Corporate Existence
	 	 	50	 
	SECTION 4.04.	 	Payment of Taxes and Other Claims
	 	 	50	 
	SECTION 4.05.	 	Maintenance of Properties and Insurance
	 	 	50	 
	SECTION 4.06.	 	Compliance Certificate; Notice of Default
	 	 	51	 
	SECTION 4.07.	 	Compliance with Laws
	 	 	51	 
	SECTION 4.08.	 	Reports to Holders
	 	 	52	 
	SECTION 4.09.	 	Waiver of Stay, Extension or Usury Laws
	 	 	52	 
	SECTION 4.10.	 	Limitation on Restricted Payments
	 	 	53	 
	SECTION 4.11.	 	Limitation on Transactions with Affiliates
	 	 	56	 
	SECTION 4.12.	 	Limitation on Incurrence of Additional Indebtedness
	 	 	57	 
	SECTION 4.13.	 	Limitation on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries
	 	 	59	 
	SECTION 4.14.	 	Limitation on Issuances of Certain Guarantees by, and Debt Securities of, Restricted Subsidiaries
	 	 	60	 
	SECTION 4.15.	 	Limitation on Change of Control
	 	 	61	 
	SECTION 4.16.	 	Limitation on Asset Sales
	 	 	63	 
	SECTION 4.17.	 	Limitation on Preferred Stock of Restricted Subsidiaries
	 	 	67	 
	SECTION 4.18.	 	Limitation on Liens
	 	 	67	 
	SECTION 4.19.	 	Conduct of Business
	 	 	67	 
	SECTION 4.20.	 	Limitation on Equity Contributions to Restricted Subsidiaries; Obligations To Transfer Certain Proceeds
	 	 	67	 
	SECTION 4.21.	 	Exercise of Redemption Rights and Sales Rights
	 	 	68	 
	SECTION 4.22.	 	Impairment of Security Interest
	 	 	69	 
	SECTION 4.23.	 	Limitation on Repurchases and Payments for Consents
	 	 	70	 
	SECTION 4.24.	 	Limitation on Asset Transfers to Subsidiaries that Are Not Subsidiary Guarantors or Intercompany Note Obligors
	 	 	70	 
	SECTION 4.25.	 	Subsequent Issuance
	 	 	70	 
	SECTION 4.26.	 	Mortgages
	 	 	71	 
	 	 	 	 	 	 	 
	ARTICLE FIVE

	 	 	 	 	 	 	 
	SUCCESSOR CORPORATION

	 	 	 	 	 	 	 
	SECTION 5.01.	 	Merger, Consolidation and Sale of Assets
	 	 	72	 
	SECTION 5.02.	 	Successor Corporation Substituted
	 	 	74	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE SIX

	 	 	 	 	 	 	 
	DEFAULT AND REMEDIES

	 	 	 	 	 	 	 
	SECTION 6.01.	 	Events of Default
	 	 	74	 
	SECTION 6.02.	 	Acceleration
	 	 	76	 
	SECTION 6.03.	 	Other Remedies
	 	 	77	 
	SECTION 6.04.	 	Waiver of Past Defaults
	 	 	77	 
	SECTION 6.05.	 	Control by Majority
	 	 	78	 
	SECTION 6.06.	 	Limitation on Suits
	 	 	78	 
	SECTION 6.07.	 	Rights of Holders To Receive Payment
	 	 	79	 
	SECTION 6.08.	 	Collection Suit by Trustee
	 	 	79	 
	SECTION 6.09.	 	Trustee May File Proofs of Claim
	 	 	79	 
	SECTION 6.10.	 	Priorities
	 	 	80	 
	SECTION 6.11.	 	Undertaking for Costs
	 	 	80	 
	 	 	 	 	 	 	 
	ARTICLE SEVEN

	 	 	 	 	 	 	 
	TRUSTEE

	 	 	 	 	 	 	 
	SECTION 7.01.	 	Duties of Trustee
	 	 	81	 
	SECTION 7.02.	 	Rights of Trustee
	 	 	82	 
	SECTION 7.03.	 	Individual Rights of Trustee
	 	 	83	 
	SECTION 7.04.	 	Trustee’s Disclaimer
	 	 	83	 
	SECTION 7.05.	 	Notice of Default
	 	 	84	 
	SECTION 7.06.	 	Reports by Trustee to Holders
	 	 	84	 
	SECTION 7.07.	 	Compensation and Indemnity
	 	 	84	 
	SECTION 7.08.	 	Replacement of Trustee
	 	 	85	 
	SECTION 7.09.	 	Successor Trustee by Merger, Etc
	 	 	86	 
	SECTION 7.10.	 	Eligibility; Disqualification
	 	 	86	 
	SECTION 7.11.	 	Preferential Collection of Claims Against Company
	 	 	87	 
	 	 	 	 	 	 	 
	ARTICLE EIGHT

	 	 	 	 	 	 	 
	SATISFACTION AND DISCHARGE OF INDENTURE

	 	 	 	 	 	 	 
	SECTION 8.01.	 	Legal Defeasance and Covenant Defeasance
	 	 	87	 
	SECTION 8.02.	 	Satisfaction and Discharge
	 	 	90	 
	SECTION 8.03.	 	Survival of Certain Obligations
	 	 	91	 
	SECTION 8.04.	 	Acknowledgment of Discharge by Trustee
	 	 	91	 
	SECTION 8.05.	 	Application of Trust Moneys
	 	 	91	 
	SECTION 8.06.	 	Repayment to the Company; Unclaimed Money
	 	 	92	 
	SECTION 8.07.	 	Reinstatement
	 	 	92	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE NINE

	 	 	 	 	 	 	 
	AMENDMENTS, SUPPLEMENTS AND WAIVERS

	 	 	 	 	 	 	 
	SECTION 9.01.	 	Without Consent of Holders
	 	 	92	 
	SECTION 9.02.	 	With Consent of Holders
	 	 	93	 
	SECTION 9.03.	 	Compliance with TIA
	 	 	95	 
	SECTION 9.04.	 	Revocation and Effect of Consents
	 	 	95	 
	SECTION 9.05.	 	Notation on or Exchange of Notes
	 	 	96	 
	SECTION 9.06.	 	Trustee To Sign Amendments, Etc
	 	 	96	 
	 	 	 	 	 	 	 
	ARTICLE TEN

	 	 	 	 	 	 	 
	GUARANTEE

	 	 	 	 	 	 	 
	SECTION 10.01.	 	Guarantee
	 	 	96	 
	SECTION 10.02.	 	Release of a Subsidiary Guarantor
	 	 	97	 
	SECTION 10.03.	 	Limitation of Subsidiary Guarantor’s Liability
	 	 	98	 
	SECTION 10.04.	 	Subsidiary Guarantors May Consolidate, etc, on Certain Terms
	 	 	98	 
	SECTION 10.05.	 	Contribution
	 	 	99	 
	SECTION 10.06.	 	Waiver of Subrogation
	 	 	99	 
	SECTION 10.07.	 	Evidence of Guarantee
	 	 	100	 
	SECTION 10.08.	 	Waiver of Stay, Extension or Usury Laws
	 	 	100	 
	 	 	 	 	 	 	 
	ARTICLE ELEVEN

	 	 	 	 	 	 	 
	COLLATERAL AND COLLATERAL AGREEMENTS

	 	 	 	 	 	 	 
	SECTION 11.01.	 	Approval of Collateral Agreements; Representations and Warranties; No Preference Among Holders
	 	 	101	 
	SECTION 11.02.	 	Documentation and Recording; Opinions of Counsel; Further Assurances
	 	 	102	 
	SECTION 11.03.	 	Possession of the Collateral
	 	 	104	 
	SECTION 11.04.	 	Suits To Protect the Collateral
	 	 	104	 
	SECTION 11.05.	 	Release of Liens
	 	 	105	 
	SECTION 11.06.	 	Specified Releases of Collateral
	 	 	105	 
	SECTION 11.07.	 	Sharing of Collateral
	 	 	106	 
	SECTION 11.08.	 	Sufficiency of Release
	 	 	106	 
	SECTION 11.09.	 	Actions by the Collateral Agent
	 	 	107	 
	SECTION 11.10.	 	Intercreditor Agreement
	 	 	107	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE TWELVE

	 	 	 	 	 	 	 
	MISCELLANEOUS

	 	 	 	 	 	 	 
	SECTION 12.01.	 	TIA Controls
	 	 	107	 
	SECTION 12.02.	 	Notices
	 	 	107	 
	SECTION 12.03.	 	Communications by Holders with Other Holders
	 	 	108	 
	SECTION 12.04.	 	Certificate and Opinion as to Conditions Precedent
	 	 	109	 
	SECTION 12.05.	 	Statements Required in Certificate or Opinion
	 	 	109	 
	SECTION 12.06.	 	Rules by Trustee, Paying Agent, Registrar
	 	 	109	 
	SECTION 12.07.	 	Legal Holidays
	 	 	110	 
	SECTION 12.08.	 	Governing Law
	 	 	110	 
	SECTION 12.09.	 	No Adverse Interpretation of Other Agreements
	 	 	110	 
	SECTION 12.10.	 	No Recourse Against Others
	 	 	110	 
	SECTION 12.11.	 	Successors
	 	 	110	 
	SECTION 12.12.	 	Duplicate Originals
	 	 	111	 
	SECTION 12.13.	 	Severability
	 	 	111	 
	SECTION 12.14.	 	Force Majeure
	 	 	111	 
	 
	SIGNATURES	 	 
	 	 	S-1	 

	 	 	 	 	 	 	 	 	 
	Exhibit A
	 	—	 	Form of Unrestricted Note	 	 	A-1	 
	Exhibit B
	 	—	 	Form of Restricted Note	 	 	B-1	 
	Exhibit C
	 	—	 	Form of Legend for Global Notes	 	 	C-1	 
	Exhibit D
	 	—	 	Form of Certificate To Be Delivered in Connection with Transfers to Non-QIB Accredited Investors	 	 	D-1	 
	Exhibit E
	 	—	 	Form of Certificate To Be Delivered in Connection with Transfers Pursuant to Regulation S	 	 	E-1	 
	Exhibit F
	 	—	 	Form of Global IDS	 	 	F-1	 
	Exhibit G
	 	—	 	Form of Notice To Be Delivered in Connection with Recombination/Separation of IDSs	 	 	G-1	 
	Exhibit H
	 	—	 	Form of Security Agreement	 	 	H-1	 
	Exhibit I
	 	—	 	Form of Pledge Agreement	 	 	I-1	 
	Exhibit J
	 	—	 	Form of Intercreditor Agreement	 	 	J-1	 
	Exhibit K
	 	—	 	Form of Post-Merger Event Pledge Agreement	 	 	K-1	 

	NOTE:   	This Table of Contents shall not, for any purpose, be deemed to be part of the Indenture.

 

 

          INDENTURE, dated as of November 24, 2004, between Coinmach Service Corp., a Delaware
corporation (the “Company”), the Subsidiary Guarantors (as herein defined), and The Bank of
New York, a New York banking corporation, as Trustee (the “Trustee”) and Collateral Agent
(the “Collateral Agent”).

          The Company and the Subsidiary Guarantors have duly authorized the creation of an issue of
$132,566,664.68 aggregate principal amount of 11% Senior Secured Notes due 2024 (the “Initial
Notes” and, together with any Additional Notes (as herein defined), the “Notes”) and
the Subsidiary Guarantees (as herein defined) and, to provide therefor, the Company and the
Subsidiary Guarantors have duly authorized the execution and delivery of this Indenture. All
things necessary to make the Notes and Subsidiary Guarantees, when each are duly issued and
executed by the Company and the Subsidiary Guarantors, as applicable, and authenticated and
delivered hereunder, the valid and legally binding obligations of each of the Company and the
Subsidiary Guarantors, respectively, and to make this Indenture a valid and legally binding
agreement of each of the Company and the Subsidiary Guarantors, have been done.

          Each party hereto agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the Holders of the Notes.

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

          SECTION 1.01. Definitions.

          “9% Coinmach Corp. Notes” means the notes issued pursuant to the indenture, dated as
of January 25, 2002, by and among Coinmach Corp., as issuer, the guarantors party thereto, and U.S.
Bank, N.A., as trustee.

          “Acquired Indebtedness” means Indebtedness of a Person or any of its Subsidiaries
existing at the time such Person becomes a Restricted Subsidiary of the Company or at the time it
merges or consolidates with or into the Company or any of its Subsidiaries or assumed in connection
with the acquisition of assets from such Person and in each case not incurred by such Person in
connection with, or in anticipation or contemplation of, such Person becoming a Restricted
Subsidiary of the Company or such acquisition, and which Indebtedness is without recourse to the
Company or any of its Subsidiaries or to any of their respective properties or assets other than
the Person or the assets to which such Indebtedness related prior to the time such Person becomes a
Restricted Subsidiary of the Company or the time of such acquisition, merger or consolidation.

 

 

          “Additional IDS Notes” means Additional Notes that may be issued in connection with
issuances or sales of IDSs.

          “Additional Notes” has the meaning provided in Section 2.02 and means any Notes issued
after the Issue Date from time to time in accordance with the terms of this Indenture, including,
without limitation, the provisions of Sections 2.02 and 4.12.

          “Administrative Agent” means the administrative agent under the Credit Agreement.

          “Affiliate” means, with respect to any specified Person, any other Person who directly
or indirectly through one or more intermediaries controls, or is controlled by, or is under common
control with, such specified Person. The term “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative of the foregoing.

          “Affiliate Transaction” has the meaning provided in Section 4.11(a).

          “Agent” means any Registrar, Paying Agent or co-Registrar.

          “Agent Members” has the meaning provided in Section 2.01 and means, with respect to
the Depository, a Person who has an account with the Depository.

          “Applicable Procedures” means, with respect to any transfer or exchange of or for
beneficial interests in any Global Note, the rules and procedures of the Depository that apply to
such transfer or exchange.

          “Asset Acquisition” means (a) an Investment by the Company or any Restricted
Subsidiary of the Company in any other Person pursuant to which such Person shall become a
Restricted Subsidiary of the Company or any Restricted Subsidiary of the Company, or shall be
merged with or into the Company or any Restricted Subsidiary of the Company, or (b) the acquisition
by the Company or any Restricted Subsidiary of the Company of the assets of any Person (other than
a Restricted Subsidiary of the Company) which constitute all or substantially all of the assets of
such Person or comprise any division or line of business of such Person or any other properties or
assets of such Person other than in the ordinary course of business.

          “Asset Sale” means any direct or indirect sale, issuance, conveyance, transfer, lease
(other than operating leases entered into in the ordinary course of business), assignment or other
transfer for value by the Company or any of its Restricted Subsidiaries (including any Sale and
Leaseback Transaction) to any Person of (a) any Capital Stock of any Restricted

-2-

 

Subsidiary of the Company; or (b) any other property or assets of the Company or any
Restricted Subsidiary of the Company other than in the ordinary course of business;
provided, however, that asset sales or other dispositions shall not include (i) a
transaction or series of related transactions for which the Company or its Restricted Subsidiaries
receive aggregate consideration of less than $5,000,000; (ii) the sale, lease, conveyance,
disposition or other transfer of all or substantially all of the assets of the Company as permitted
under Article Five; (iii) any Restricted Payment permitted under Section 4.10 or any Permitted
Investment; (iv) sales of franchises or the sale or lease of equipment, receivables or other assets
acquired and held for resale, in all cases in the ordinary course of business; (v) any sale of
Capital Stock or Indebtedness or other securities of an Unrestricted Subsidiary; (vi) any sale or
transfer of properties or assets by the Company or a Restricted Subsidiary to the Company or any
other Restricted Subsidiary; and (vii) sales or grants of licenses or similar rights in the
ordinary course of business in respect of the Company’s or any Restricted Subsidiary’s intellectual
property.

          “Authenticating Agent” has the meaning provided in Section 2.02.

          “Authority” means any nation or government, any state or other political subdivision
thereof and any entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

          “Bankruptcy Law” means Title 11, U.S. Code or any similar federal, state or foreign
law for the relief of debtors.

          “Board of Directors” means, as to any Person, the board of directors of such Person or
any duly authorized committee thereof.

          “Board Resolution” means, with respect to any Person, a copy of a resolution certified
by the Secretary or an Assistant Secretary of such Person to have been duly adopted by the Board of
Directors of such Person and to be in full force and effect on the date of such certification, and
delivered to the Trustee.

          “Business Day” means a day that is not a Legal Holiday.

          “Capital Expenditures” means, for any period, without duplication, the sum of:

     (1) the aggregate amount of all expenditures of any Person and its Restricted
Subsidiaries for property, plant and equipment (excluding any property, plant and equipment
acquired in connection with acquisitions, including advance location payments to location
owners and excluding expenditures relating to additions to net assets related to
acquisitions of businesses) that are recorded as fixed or capital assets made during such
period which, in accordance with GAAP, would be classified as capital expenditures, and

-3-

 

     (2) the aggregate amount of all cash payments made during such period in respect of any
Capitalized Lease Obligation allocable to the principal component thereof;

provided that the term “Capital Expenditures” shall not include (a) expenditures and
payments made since the Issue Date in an aggregate amount not to exceed $35,000,000; (b)
expenditures made in connection with the replacement, substitution or restoration of assets (i) to
the extent financed from insurance proceeds paid on account of the loss of or damage to the assets
being replaced or restored or (ii) with awards of compensation arising from the taking by eminent
domain or condemnation of the assets being replaced; (c) the purchase price of equipment that is
purchased simultaneously with the trade-in of existing equipment to the extent that the gross
amount of such purchase price is reduced by the credit granted by the seller of such equipment for
the equipment being traded in at such time; (d) a Capitalized Lease Obligation paid in respect of
equipment that is leased in substitution for, or as replacement in connection with the trade-in of,
existing similar equipment; (e) the purchase of plant, property or equipment made within one year
of the sale of any asset in replacement of such asset to the extent purchased with the proceeds of
such sale, and a Capitalized Lease Obligation paid in respect of such replaced asset; and (f)
expenditures for property, plant and equipment that are financed to the extent of such financing,
provided that all cash payments made during such period in respect of such financing and
allocable to the principal component thereof shall be treated as a Capital Expenditure for such
period.

          “Capital Stock” means (i) with respect to any Person that is a corporation, any and
all shares, interests, participations or other equivalents (however designated and whether or not
voting) of corporate stock, including each class of Common Stock and Preferred Stock of such
Person, and (ii) with respect to any Person that is not a corporation, any and all partnership,
membership or other equity interests of such Person.

          “Capitalized Lease Obligation” means, as to any Person, the obligations of such Person
under a lease that are required to be classified and accounted for as capital lease obligations
under GAAP and, for purposes of this definition, the amount of such obligations at any date shall
be the capitalized amount of such obligations at such date, determined in accordance with GAAP.

          “Carry-Over Dividend Basket” shall initially equal $30,000,000; provided that

     (a) if during any fiscal quarter the aggregate amount of dividends paid on the
Company’s Class A Common Stock pursuant to clause (7) of the second paragraph of Section
4.10 is less than the Quarterly Base Dividend Level calculated for such fiscal quarter, an
amount equal to the difference between (1) the Quarterly Base Dividend Level for such fiscal
quarter and (2) the aggregate amount of dividends paid on the Company’s Common Stock during
such fiscal quarter shall be added to the Carry-Over Dividend Basket as of the last day of
such fiscal quarter;

-4-

 

     (b) if during any fiscal quarter the Company’s Consolidated Interest Expense exceeds
Distributable Cash Flow (the “Excess Amount”) for such fiscal quarter, the
Carry-Over Dividend Basket shall be reduced by such Excess Amount as of the last day of such
fiscal quarter; and

     (c) at the end of each fiscal quarter the Carry-Over Dividend Basket shall be reduced
by an amount equal to all dividends paid in reliance on clause (8) of the second paragraph
of Section 4.10 during such fiscal quarter.

          “Cash Equivalents” means (i) marketable direct obligations issued by, or
unconditionally Guaranteed by, the United States Government or issued by any agency thereof and
backed by the full faith and credit of the United States, in each case maturing within one year
from the date of acquisition thereof; (ii) marketable direct obligations issued by any state of the
United States of America or any political subdivision of any such state or any public
instrumentality thereof maturing within one year from the date of acquisition thereof and, at the
time of acquisition, having one of the two highest ratings obtainable from either Standard & Poor’s
Ratings Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”); (iii)
commercial paper maturing no more than one year from the date of creation thereof and, at the time
of acquisition, having a rating of at least A-1 from S&P or at least P-1 from Moody’s; (iv)
certificates of deposit or bankers’ acceptances maturing within one year from the date of
acquisition thereof issued by any bank organized under the laws of the United States of America or
any state thereof or the District of Columbia or any U.S. branch of a foreign bank having at the
date of acquisition thereof combined capital and surplus of not less than $250,000,000; (v)
repurchase obligations with a term of not more than seven days for underlying securities of the
types described in clause (i) above entered into with any bank meeting the qualifications specified
in clause (iv) above; and (vi) investments in money market funds which invest substantially all
their assets in securities of the types described in clauses (i) through (v) above.

          “Change of Control” means the occurrence of one or more of the following events: (i)
any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act),
other than Permitted Holders, is or becomes the “beneficial owner” (as defined in Rules 13d-3 and
13d-5 under the Exchange Act, except that a Person shall be deemed to have beneficial ownership of
all shares that such Person has the right to acquire, whether such right is exercisable immediately
or only after the passage of time), directly or indirectly, of a majority of the total outstanding
Voting Stock of the Company as measured by voting power; provided that there shall be no
Change of Control pursuant to this clause (i) if the Permitted Holders continue to have the right
or ability by voting power, contract or otherwise to elect or designate for election a majority of
the Board of Directors of the Company; or (ii) during any period of two consecutive years,
individuals who at the beginning of such period constituted the Board of Directors of the Company
(together with any new directors whose election to such Board of Directors, or whose nomination for
election by the stock-

-5-

 

holders of the Company, was approved by a vote of a majority of the directors then still in
office who were either directors at the beginning of such period or whose election or nomination
for election was previously so approved) cease for any reason to constitute a majority of such
Board of Directors then in office; provided, however, there shall be no Change of
Control pursuant to this clause (ii) if during such two-year period the Permitted Holders continue
to own, directly or indirectly, a majority of the Voting Stock of the Company as measured by voting
power; or (iii) any sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially all of the assets of the Company to any Person or
group, together with any Affiliates thereof (whether or not otherwise in compliance with the
provisions of this Indenture) that are not controlled, directly or indirectly, by the Permitted
Holders; or (iv) at any time prior to the occurrence of a Merger Event, the Company shall fail to
own, directly or indirectly, at least 99% of the Capital Stock of Coinmach Corp.

          “Change of Control Date” has the meaning provided in Section 4.15(b).

          “Change of Control Offer” has the meaning provided in Section 4.15(a).

          “Change of Control Payment Date” has the meaning provided in Section 4.15(b)(2).

          “Class A Common Stock” means the Class A common stock of the Company, par value $0.01
per share.

          “Class B Common Stock” means the Class B common stock of the Company, par value $0.01
per share.

          “Coinmach Corp.” means Coinmach Corporation, a Delaware corporation.

          “Collateral” means Collateral as such term is defined in the Security Agreement and as
such term is defined in the Pledge Agreement and in each case any other property, whether now owned
or hereafter acquired, upon which a Lien securing the Obligations of the Company under the Notes or
this Indenture or of Laundry Corp. under its Subsidiary Guarantee is granted or purported to be
granted under any Collateral Agreement. After the occurrence of the Merger Event, “Collateral”
shall only consist of the Post-Merger Event Collateral so long as the Liens created by the
Collateral Agreements shall not have been released pursuant to Section 11.06(a)(i), (ii) or (iii).

          “Collateral Agent” means the party named as such in this Indenture until a successor
replaces it in accordance with the provisions of this Indenture and thereafter means such
successor.

          “Collateral Agreements” means (i) prior to the occurrence of the Merger Event, the
Security Agreement, the Pledge Agreement and each other agreement, including

-6-

 

any Mortgage, pursuant to which a Lien is granted or purported to be granted by either the
Company on any of its assets to secure its Obligations in respect of the Notes or the Indenture or
Laundry Corp. on any of its assets to secure its Obligations in respect of its Subsidiary Guarantee
or the Indenture and (ii) subsequent to the Merger Event, the Post-Merger Event Pledge Agreement,
in each case as the same may be in force from time to time.

          “Common Stock” of any Person means any and all shares, interests or other
participations in, and other equivalents (however designated and whether voting or non-voting) of,
such Person’s common stock, whether outstanding on the Issue Date or issued after the Issue Date,
and includes, without limitation, all series and classes of such common stock.

          “Company” means the party named as such in this Indenture until a successor replaces
it pursuant to this Indenture and thereafter means such successor.

          “Comparable Treasury Issue” means the United States Treasury security or securities
selected by an Independent Investment Banker as having an actual or interpolated maturity
comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new issues of corporate
debt securities of a comparable maturity to the remaining term of such Notes.

          “Comparable Treasury Price” means, with respect to any redemption date, (i) the
average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the
highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer
than four such Reference Treasury Dealer Quotations, the average of all such quotations.

          “Consolidated EBITDA” means, with respect to any Person, for any period, the sum
(without duplication) of:

     (i) Consolidated Net Income, and

     (ii) to the extent Consolidated Net Income has been reduced thereby (a) all income
taxes of such Person and its Restricted Subsidiaries paid or accrued in accordance with GAAP
for such period (other than income taxes attributable to extraordinary, unusual or
nonrecurring gains or losses or taxes attributable to sales or dispositions of assets
outside the ordinary course of business), (b) Consolidated Interest Expense, and (c)
Consolidated Non-cash Charges less any non-cash items increasing Consolidated Net Income for
such period,

all as determined on a consolidated basis for such Person and its Restricted Subsidiaries in
accordance with GAAP.

-7-

 

          “Consolidated Fixed Charge Coverage Ratio” means, with respect to any Person, the
ratio of Consolidated EBITDA of such Person during the four full fiscal quarters (the “Four
Quarter Period”) ending on or prior to the date of the transaction or event giving rise to the
need to calculate the Consolidated Fixed Charge Coverage Ratio for which internal financial
statements are available (the “Transaction Date”) to Consolidated Fixed Charges of such
Person for the Four Quarter Period. In addition to and without limitation of the foregoing, for
purposes of this definition, “Consolidated EBITDA” and “Consolidated Fixed Charges” shall be
calculated after giving effect on a pro forma basis for the period of such calculation to:

     (i) the incurrence or repayment of any Indebtedness of such Person or any of its
Restricted Subsidiaries (and the application of the proceeds thereof) giving rise to the
need to make such calculation and any incurrence or repayment of other Indebtedness (and the
application of the proceeds thereof), other than the incurrence or repayment of Indebtedness
in the ordinary course of business for working capital purposes pursuant to working capital
facilities, occurring during the Four Quarter Period or at any time subsequent to the last
day of the Four Quarter Period and on or prior to the Transaction Date, as if such
incurrence or repayment, as the case may be (and the application of the proceeds thereof),
occurred on the first day of the Four Quarter Period, and

     (ii) any asset sales or other dispositions or Asset Acquisitions (including, without
limitation, any Asset Acquisition giving rise to the need to make such calculation as a
result of such Person or one of its Restricted Subsidiaries (including any Person who
becomes a Restricted Subsidiary as a result of any such Asset Acquisition) incurring,
assuming or otherwise being liable for Acquired Indebtedness during the Four Quarter Period
or at any time subsequent to the last day of the Four Quarter Period and on or prior to the
Transaction Date), as if such asset sale or other disposition or Asset Acquisition
(including the incurrence, assumption or liability for any such Indebtedness or Acquired
Indebtedness and also including any Consolidated EBITDA associated with such Asset
Acquisition) occurred on the first day of the Four Quarter Period, and including any pro
forma expense and cost reductions calculated on a basis consistent with Regulation S-X under
the Exchange Act; provided that the Consolidated EBITDA of any Person acquired shall
be included only to the extent includible pursuant to the definition of “Consolidated Net
Income.”

          If such Person or any of its Restricted Subsidiaries directly or indirectly Guarantees
Indebtedness of a third Person, the preceding sentence shall give effect to the incurrence of such
Guaranteed Indebtedness as if such Person or any Restricted Subsidiary of such Person had directly
incurred or otherwise assumed such Guaranteed Indebtedness.

-8-

 

          Furthermore, in calculating “Consolidated Fixed Charges” for purposes of determining the
denominator (but not the numerator) of this “Consolidated Fixed Charge Coverage Ratio,”

     (1) interest on outstanding Indebtedness determined on a fluctuating basis as of the
Transaction Date (including Indebtedness actually incurred on the Transaction Date) and
which will continue to be so determined thereafter shall be deemed to have accrued at a
fixed rate per annum equal to the average rate of interest on such Indebtedness during the
Four Quarter Period ending on or prior to the Transaction Date; and

     (2) notwithstanding clause (1) above, interest on Indebtedness determined on a
fluctuating basis, to the extent such interest is covered by agreements relating to Interest
Swap Obligations, shall be deemed to accrue at the rate per annum resulting after giving
effect to the operation of such agreements.

          “Consolidated Fixed Charges” means, with respect to any Person for any period, the
sum, without duplication, of (i) Consolidated Interest Expense plus (ii) the product of (x) the
amount of all dividend payments on any series of Preferred Stock of such Person (other than
dividends paid in Qualified Capital Stock) paid, accrued or scheduled to be paid or accrued during
such period times (y) a fraction, the numerator of which is one and the denominator of which is one
minus the then current effective consolidated federal, state and local tax rate of such Person,
expressed as a decimal.

          “Consolidated Interest Expense” means, with respect to any Person for any period, the
aggregate of the interest expense of such Person and its Restricted Subsidiaries for such period,
on a consolidated basis, as determined in accordance with GAAP, excluding amortization or write-off
of deferred financing costs and debt issuance costs of such Person and its consolidated Restricted
Subsidiaries during such period and any premium or penalty paid in connection with redeeming or
retiring Indebtedness of such Person and its consolidated Restricted Subsidiaries prior to the
stated maturity thereof pursuant to the agreements governing such Indebtedness and including,
without duplication, (a) all amortization of original issue discount; (b) the interest component of
Capitalized Lease Obligations paid, accrued and/or scheduled to be paid or accrued by such Person
and its Restricted Subsidiaries during such period; (c) net cash costs under all Interest Swap
Obligations (including amortization of fees), other than any cash costs paid to unwind Interest
Rate Obligations existing on and prior to the Issue Date; (d) all capitalized interest; and (e) the
interest portion of any deferred payment obligations for such period.

          “Consolidated Net Income” means, with respect to any Person, for any period, the
aggregate net income (or loss) of such Person and its Restricted Subsidiaries for such period on a
consolidated basis, determined in accordance with GAAP; provided that there shall be
excluded therefrom (a) after-tax gains and losses from Asset Sales or abandonments or re-

-9-

 

serves relating thereto, (b) after-tax items classified as extraordinary or nonrecurring
gains, (c) the net income (but not loss) of any Restricted Subsidiary of the referent Person to the
extent that the declaration of dividends or similar distributions by that Restricted Subsidiary of
that income is restricted by a contract, operation of law or otherwise, (d) the net income of any
Person, other than a Restricted Subsidiary of the referent Person, except to the extent of cash
dividends or distributions paid to the referent Person or to a Wholly Owned Restricted Subsidiary
of the referent Person by such Person, (e) any restoration to income of any material contingency
reserve, except to the extent that provision for such reserve was made out of Consolidated Net
Income accrued at any time following the Issue Date, (f) income or loss attributable to
discontinued operations (including, without limitation, operations disposed of during such period
whether or not such operations were classified as discontinued), (g) all gains and losses realized
on or because of the purchase or other acquisition by such Person or any of its Restricted
Subsidiaries of any securities of such Person or any of its Restricted Subsidiaries, (h)
amortization charges resulting from purchase accounting adjustments with respect to transactions
prior to the Issue Date, (i) in the case of a successor to the referent Person by consolidation or
merger or as a transferee of the referent Person’s assets, any earnings of the successor
corporation prior to such consolidation, merger or transfer of assets, (j) write downs resulting
from the impairment of intangible assets, (k) the amount of amortization or write-off of deferred
financing costs and debt issuance costs of such Person and its consolidated Restricted Subsidiaries
during such period and any premium or penalty paid in connection with redeeming or retiring
indebtedness of such Person and its consolidated Restricted Subsidiaries prior to the stated
maturity thereof pursuant to the agreements governing such Indebtedness, (l) costs paid to unwind
Interest Rate Obligations existing on and prior to the Issue Date, and (m) non-cash charges related
to employee compensation.

          “Consolidated Non-Cash Charges” means, with respect to any Person for any period, the
aggregate depreciation, amortization and other non-cash expenses of such Person and its Restricted
Subsidiaries reducing Consolidated Net Income of such Person and its Restricted Subsidiaries for
such period, determined on a consolidated basis in accordance with GAAP (excluding any such charges
constituting an extraordinary item or loss or any such charge which requires an accrual of or a
reserve for cash charges for any future period).

          “Covenant Defeasance” has the meaning provided in Section 8.01(c).

          “Credit Agreement” means the Credit Agreement dated as of January 25, 2002, among
Laundry Corp., Coinmach Corp., the lenders party thereto from time to time in their capacities as
lenders thereunder and Deutsche Bank Trust Company Americas (f/k/a Bankers Trust Company), as
administrative agent and collateral agent, together with the related documents thereto (including,
without limitation, any guarantee agreements and security documents), in each case as such
agreements may be amended (including any amendment and restatement thereof), supplemented or
otherwise modified from time to time, or refunded, refinanced, restructured, replaced, renewed,
repaid or extended from time to time (whether in

-10-

 

whole or in part and whether with the original agents and lenders or other agents and lenders
or otherwise including, without limitation, under any high yield financing), including, without
limitation, to increase the amount of available borrowings thereunder (provided that any
Indebtedness incurred pursuant to such increase is permitted under Section 4.12) or to add
Restricted Subsidiaries of the Company as additional borrowers or Restricted Subsidiaries of the
Company or other Persons as additional guarantors thereunder.

          “Credit Agreement Collateral Agent” means the collateral agent under the Credit
Agreement.

          “Currency Agreement” means any foreign exchange contract, currency swap agreement or
other similar agreement or arrangement designed to protect the Company or any Restricted Subsidiary
of the Company against fluctuations in currency values.

          “Custodian” means any receiver, trustee, assignee, liquidator, sequestrator or similar
official under any Bankruptcy Law.

          “Default” means an event or condition the occurrence of which is, or with the lapse of
time or the giving of notice or both would be, an Event of Default.

          “Depository” or “DTC” means The Depository Trust Company, its nominees and
successors.

          “Disproportionality Test” means, as of any date, that either

     (i) at least 40% of the voting power and value of the Company’s then outstanding Common
Stock is held separate and apart from any debt security of the Company or its Subsidiaries
and not as part of the IDSs or any other units that include a debt instrument of the Company
or its Subsidiaries; provided that the voting power and value of Common Stock held
by Parent, GTCR-CLC, LLC, persons controlling or controlled by them, or affiliates of any of
such entities or persons shall be considered held separate and apart from any such debt
securities, IDSs or other such units only to the extent that the ownership by such entities
and persons of the Common Stock of the Company, measured as the lesser of the percentages of
the aggregate value or voting power of such entities and persons, exceeds the ownership by
such entities and persons of Notes, including Additional Notes, if any, and other
indebtedness of the Company and its Subsidiaries that ranks pari passu with the Notes,
measured as a percentage of the aggregate principal amount of such Notes and other debt; or

     (ii) at least 40% in aggregate principal amount of the then outstanding Notes
(including Additional Notes, if any) is held separate and apart from any Capital Stock of
the Company or its Subsidiaries and not as part of the IDSs or any other units that include
any Capital Stock of the Company or its Subsidiaries; provided that Notes

-11-

 

held by Parent, GTCR-CLC, LLC, persons controlling or controlled by them, or affiliates
of any of such entities or persons shall be considered held separate and apart from any such
Capital Stock, IDSs or other such units only to the extent that ownership of the Notes by
such entities and persons, measured as a percentage of the aggregate principal amount of the
Notes, exceeds the ownership by such entities and persons of the Company’s then outstanding
Common Stock, measured as the greater of the percentages of the aggregate value or voting
power.

          “Disqualified Capital Stock” means that portion of any Capital Stock (other than the
Class B Common Stock) which, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable at the option of the holder thereof), or upon the
happening of any event (other than an event which would constitute a Change of Control), matures or
is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at
the sole option of the holder thereof (except, in each case, upon the occurrence of a Change of
Control) on or prior to the final maturity date of the Notes for cash.

          “Distributable Cash Flow” means, as of any date of determination, Consolidated EBITDA
of the Company for the most recent fiscal quarter prior to such date of determination for which
internal financial statements are available (less Consolidated Net Income used to make a Restricted
Payment in reliance on and calculated in accordance with clause (iii)(w) of the first paragraph of
Section 4.10) minus

     (1) the sum, without duplication, of:

     (a) cash tax payments in respect of federal and state income taxes,

     (b) Capital Expenditures,

     (c) cash principal payments on any Indebtedness of the Company or its Restricted
Subsidiaries (other than (i) payments on intercompany obligations, (ii) payments made from
amounts borrowed pursuant to Indebtedness or amounts received from the issuance or sale of
Qualified Capital Stock, in each case that has refinanced, renewed or replaced such repaid
Indebtedness in such period, (iii) payments made on Indebtedness under working capital
facilities to the extent such amounts remain available to be reborrowed and (iv) payments
made to redeem 9% Coinmach Corp. Notes or repay borrowings outstanding under the Credit
Agreement, in each case pursuant to the Transactions),

     (d) net changes in Working Capital and

     (e) extraordinary cash charges,

plus

-12-

 

     (2) the sum of:

     (a) cash tax refunds in respect of federal and state income taxes and

     (b) extraordinary cash gains,

in each case of the Company on a consolidated basis for or in such fiscal quarter.

          “Domestic Restricted Subsidiary” means any Restricted Subsidiary of the Company
incorporated or otherwise organized or existing under the laws of the United States, any state
thereof or the District of Columbia.

          “Event of Default” has the meaning provided in Section 6.01.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute or statutes thereto.

          “Exchange Notes” means Additional Notes, if any, issued under Section 2.02 pursuant to
a Registration Rights Agreement.

          “Exchange Offer” means the registration by the Company under the Securities Act
pursuant to a registration statement of the offer by the Company to each Holder of Additional
Notes, if any, to exchange all such Additional Notes held by such Holder for the Exchange Notes in
an aggregate principal amount equal to the aggregate principal amount of such Additional Notes held
by such Holder, all in accordance with the terms and conditions of a Registration Rights Agreement.

          “Fair Market Value” means, with respect to any asset or property, the price which
could be negotiated in an arm’s-length, free market transaction, for cash, between a willing seller
and a willing and able buyer, neither of whom is under undue pressure or compulsion to complete the
transaction. Fair Market Value shall be determined by the Board of Directors of the Company acting
reasonably and in good faith and shall be evidenced by a Board Resolution of the Board of Directors
of the Company delivered to the Trustee.

          “First Four Dividend Payments” means the dividend payments contemplated to be made by
the Company on the Class A Common Stock on March 1, 2005, June 1, 2005, September 1, 2005 and
December 1, 2005 for the partial quarterly dividend payment period ending December 31, 2004 and the
full quarterly dividend payment periods ending March 31, 2005, June 30, 2005 and September 30,
2005, provided that the dollar amount of such dividend payments shall not exceed (i) if the
Over-Allotment Option is not exercised, $12,934,003.50, (ii) if the Over-Allotment Option is
exercised in full, $14,874,103.30 and (iii) if the Over-Allotment Option is exercised in part, the
proportion of the amount set forth in

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clause (ii) that is allocable to the Class A Common Stock underlying the IDSs with respect to
which the Over-Allotment Option was exercised.

          “GAAP” means accounting principles generally accepted in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as may be approved by a
significant segment of the accounting profession of the United States, which are in effect as of
the Issue Date.

          “Global IDS” has the meaning provided in Section 2.17.

          “Global Note” has the meaning provided in Section 2.01.

          “Guarantee” means, as applied to any obligation of another Person, (i) a guarantee
(other than by endorsement of negotiable instruments for collection in the ordinary course of
business), direct or indirect, in any manner, of any part or all of such obligation, (ii) any
direct or indirect obligation, contingent or otherwise, of a Person guaranteeing or having the
effect of guaranteeing the obligations of any other Person in any manner and (iii) an agreement of
a Person, direct or indirect, contingent or otherwise, the practical effect of which is to assure
in any way the payment or performance (or payment of damages in the event of non-performance) of
all or any part of such obligation of another Person (and “Guaranteed,” “Guaranteeing” and
“Guarantor” shall have meanings correlative to the foregoing).

          “Holder” means the Person in whose name a Note is registered on the Registrar’s books.

          “IDS” means a security issued or to be issued by the Company, representing (1) one
share of Class A Common Stock of the Company and (2) $6.14 aggregate principal amount of Notes,
Non-OID Additional Notes or OID Exchange Units, as the case may be (or a combination thereof), as
may be adjusted from time to time in accordance with the provisions of this Indenture.

          “IDS Transfer Agent” has the meaning provided in Section 2.17.

          “incur” has the meaning provided in Section 4.12(a).

          “Indebtedness” means with respect to any Person, without duplication,

     (i) all Obligations of such Person for borrowed money,

     (ii) all Obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments,

-14-

 

     (iii) all Capitalized Lease Obligations of such Person,

     (iv) all Obligations of such Person issued or assumed as the deferred purchase price of
property, all conditional sale obligations and all Obligations under any title retention
agreement (but excluding trade accounts payable and other accrued liabilities arising in the
ordinary course of business that are not overdue by 90 days or more or are being contested
in good faith by appropriate proceedings promptly instituted and diligently conducted and
any deferred purchase price represented by earn-outs consistent with the Company’s past
practice),

     (v) all Obligations for the reimbursement of any obligor on any letter of credit,
banker’s acceptance or similar credit transaction,

     (vi) Guarantees and other contingent obligations in respect of Indebtedness referred to
in clauses (i) through (v) above and clause (viii) below,

     (vii) all Obligations of any other Person of the type referred to in clauses (i)
through (vi) which are secured by any Lien on any property or asset of such Person, the
amount of such Obligation being deemed to be the lesser of the fair market value of such
property or asset or the amount of the Obligation so secured,

     (viii) all Obligations under currency agreements and interest swap agreements of such
Person and

     (ix) all Disqualified Capital Stock issued by such Person with the amount of
Indebtedness represented by such Disqualified Capital Stock being equal to the greater of
its voluntary or involuntary liquidation preference and its maximum fixed repurchase price,
but excluding accrued dividends, if any.

For purposes hereof, the “maximum fixed repurchase price” of any Disqualified Capital Stock which
does not have a fixed repurchase price shall be calculated in accordance with the terms of such
Disqualified Capital Stock as if such Disqualified Capital Stock were purchased on any date on
which Indebtedness shall be required to be determined pursuant to this Indenture, and if such price
is based upon, or measured by, the fair market value of such Disqualified Capital Stock, such fair
market value shall be determined reasonably and in good faith by the Board of Directors of the
issuer of such Disqualified Capital Stock.

          “Indenture” means this Indenture, as amended or supplemented from time to time in
accordance with the terms hereof.

          “Independent Financial Advisor” means an investment banking firm (i) which does not,
and whose directors, officers and employees or Affiliates do not, have a direct or indirect
financial interest in the Company and (ii) which, in the judgment of the Board of Di-

-15-

 

rectors of the Company, is otherwise independent and qualified to perform the task for which
it is to be engaged.

          “Independent Investment Banker” means one of the Reference Treasury Dealers appointed
by the Trustee as directed by the Company.

          “Initial Notes” has the meaning provided in the Recitals to this Indenture.

          “Institutional Accredited Investor” means an institution that is an “accredited
investor” as that term is defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act.

          “Intercompany Note” means that certain intercompany note in an initial aggregate
principal amount of $79,539,998.81 to be issued by Coinmach Corp. to the Company on the Issue Date,
together with any additional intercompany note or notes evidencing Indebtedness owed by Coinmach
Corp. to the Company, in each case providing for termination upon the occurrence of the Merger
Event.

          “Intercompany Note Guaranty” has the meaning specified in the Intercompany Note.

          “Intercompany Note Guarantor” has the meaning specified in the Intercompany Note.

          “Intercompany Note Obligor” has the meaning provided in Section 4.12(b).

          “Intercreditor Agreement” means the Intercreditor Agreement among the Credit Agreement
Collateral Agent, the Collateral Agent and Laundry Corp., dated as of the Issue Date, substantially
in the form of Exhibit J hereto, as amended, supplemented or modified from time to time in
accordance with its terms.

          “Interest Coverage Test” means that, as of any date of determination,

     (1) the Company’s Consolidated Interest Expense was less than 90% of its Distributable
Cash Flow for the most recent fiscal quarter for which internal financial statements are
available; and

     (2) the Company reasonably and in good faith determines that both (i) it and its
Restricted Subsidiaries have cash or borrowings available under committed financing
arrangements that do not become due and payable within the next four fiscal quarters in an
amount greater than the Company’s reasonably anticipated Consolidated Interest Expense for
the next two succeeding fiscal quarters on the Company’s and its Restricted Subsidiaries’
then outstanding Indebtedness and any Indebtedness that they intend to incur in the next two
succeeding fiscal quarters; and (ii) amounts actually

-16-

 

available to the Company from its Restricted Subsidiaries at such date, taken together
with amounts expected to be received by it under the Intercompany Note over the next two
succeeding fiscal quarters, will be sufficient to make cash interest payments on all
Indebtedness of the Company then outstanding and any Indebtedness it intends to incur in the
next two succeeding fiscal quarters.

          “Interest Payment Date” means the stated maturity of an installment of interest on the
Notes.

          “Interest Swap Obligations” means the obligations of any Person pursuant to any
arrangement with any other Person whereby, directly or indirectly, such Person is entitled to
receive from time to time periodic payments calculated by applying either a floating or a fixed
rate of interest on a stated notional amount in exchange for periodic payments made by such other
Person calculated by applying a fixed or a floating rate of interest on the same notional amount
and shall include, without limitation, interest rate swaps, caps, floors, collars and similar
agreements.

          “Investment” means, with respect to any Person, any direct or indirect loan or other
extension of credit (including, without limitation, a Guarantee) or capital contribution to (by
means of any transfer of cash or other property to others or any payment for property or services
for the account or use of others), or any purchase or acquisition by such Person of any Capital
Stock, bonds, notes, debentures or other securities or evidences of Indebtedness issued by, any
Person. “Investment” shall exclude extensions of trade credit by the Company and its Restricted
Subsidiaries on commercially reasonable terms in accordance with normal trade practices of the
Company or such Restricted Subsidiaries, as the case may be. For the purposes of Section 4.10, (i)
“Investment” shall include and be valued at the Fair Market Value of the net assets of any
Restricted Subsidiary at the time that such Restricted Subsidiary is designated an Unrestricted
Subsidiary and shall exclude the fair market value of the net assets of any Unrestricted Subsidiary
at the time that such Unrestricted Subsidiary is designated a Restricted Subsidiary and (ii) the
amount of any Investment shall be the original cost of such Investment plus the cost of all
additional Investments by the Company or any of its Restricted Subsidiaries, without any
adjustments for increases or decreases in value, or write-ups, write-downs or write-offs with
respect to such Investment, reduced by the payment of dividends or distributions in connection with
such Investment or any other amounts received in respect of such Investment; provided that
no such payment of dividends or distributions or receipt of any such other amounts shall reduce the
amount of any Investment if such payment of dividends or distributions or receipt of any such
amounts would be included in Consolidated Net Income. If the Company or any Restricted Subsidiary
of the Company sells or otherwise disposes of any Common Stock of any direct or indirect Restricted
Subsidiary of the Company such that, after giving effect to any such sale or disposition, the
Company no longer owns, directly or indirectly, 100% of the outstanding Common Stock of such
Restricted Subsidiary, the Company shall be deemed to have made an Investment on the date of any
such

-17-

 

sale or disposition equal to the fair market value of the Common Stock of such Restricted
Subsidiary not sold or disposed of.

          “Issue Date” means the date of original issuance of the Initial Notes.

          “Laundry Corp.” means Coinmach Laundry Corporation, a Delaware corporation.

          “Legal Defeasance” has the meaning provided in Section 8.01(b).

          “Legal Holiday” has the meaning provided in Section 12.07.

          “Legal Requirements” means, at any time, any and all judicial and administrative
rulings and decisions, and any and all Federal, state and local laws, ordinances, rules,
regulations, permits and certificates, of any Authority, in each case applicable, at such time to
the Company, the Subsidiary Guarantors or the Collateral (or the ownership or use thereof).

          “Lenders” means the lenders under the Credit Agreement.

          “Lien” means any lien, mortgage, deed of trust, pledge, security interest, charge or
encumbrance of any kind (including any conditional sale or other title retention agreement, any
lease in the nature thereof and any agreement to give any security interest). After the occurrence
of a Merger Event, “Lien” shall include Post Merger Event Liens.

          “Maturity Date” means December 1, 2024.

          “Merger Event” means either (1) the consolidation or merger of the Company and Laundry
Corp. with and into Coinmach Corp., or (2) the consolidation or merger of Laundry Corp. and
Coinmach Corp. with and into the Company.

          “Mortgage” means an agreement, including, but not limited to, a mortgage, deed of
trust or deed to secure debt creating and evidencing a Lien on a Mortgaged Property, which shall be
prepared by counsel to the Company and in customary form, with such schedules and including such
provisions as shall be necessary to conform such document to applicable law or as shall be
customary under applicable law.

          “Mortgaged Property” means the Real Property, if any, which shall be subject to a
Mortgage delivered after the Issue Date pursuant to Section 4.26.

          “Net Cash Proceeds” means, with respect to any Asset Sale, the proceeds in the form of
cash or Cash Equivalents including payments in respect of deferred payment obligations when
received in the form of cash or Cash Equivalents (other than the portion of any such deferred
payment constituting interest) received by the Company or any of its Restricted Subsidiaries from
such Asset Sale net of (a) reasonable out-of-pocket expenses and fees relat-

-18-

 

ing to such Asset Sale (including, without limitation, legal, accounting and investment
banking fees and sales commissions), (b) taxes paid or payable after taking into account any
reduction in consolidated tax liability due to available tax credits or deductions and any tax
sharing arrangements, (c) repayment of Indebtedness that is secured by the property or assets that
are the subject of such Asset Sale and is required to be repaid in connection with such Asset Sale
and (d) appropriate amounts to be provided by the Company or any Restricted Subsidiary, as the case
may be, as a reserve, in accordance with GAAP, against any liabilities associated with such Asset
Sale and retained by the Company or any Restricted Subsidiary, as the case may be, after such Asset
Sale, including, without limitation, pension and other post-employment benefit liabilities,
liabilities related to environmental matters and liabilities under any indemnification obligations
associated with such Asset Sale.

          “Net Proceeds Offer” has the meaning provided in Section 4.16(a).

          “Net Proceeds Offer Amount” has the meaning provided in Section 4.16(a).

          “Net Proceeds Offer Payment Date” has the meaning provided in Section 4.16(a).

          “Net Proceeds Offer Trigger Date” has the meaning provided in Section 4.16(a).

          “Non-OID Additional Notes” has the meaning provided in Section 4.25(a).

          “Non-U.S. Person” means a Person who is not a U.S. person, as defined in Regulation S.

          “Note Lien” means any Lien on the Collateral in favor of the Trustee and the Holders
securing the Obligations of the Company and Laundry Corp. under or in respect of this Indenture,
the Notes, the Subsidiary Guarantee of Laundry Corp. and the Collateral Agreements.

          “Notes” has the meaning provided in the preamble to this Indenture and means the
Initial Notes and the Additional Notes, if any, treated as a single class of securities, as amended
or supplemented from time to time in accordance with the terms hereof, that are issued pursuant to
this Indenture.

          “Obligations” means all obligations for principal, premium, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under the documentation
governing any Indebtedness.

          “Officer” means, with respect to any Person, the Chairman of the Board, the Chief
Executive Officer, the President, any Vice President, the Chief Financial Officer, the

-19-

 

Treasurer, the Controller or the Secretary of such Person, or any other officer designated by
the Board of Directors serving in a similar capacity.

          “Officers’ Certificate” means, with respect to any Person, a certificate signed by two
Officers or by an Officer and either an Assistant Treasurer or an Assistant Secretary of such
Person and otherwise complying with the requirements of Sections 12.04 and 12.05, as they relate to
the making of an Officers’ Certificate.

          “Offshore Physical Notes” has the meaning provided in Section 2.01.

          “OID” means “original issue discount” as defined in Section 1273(a) of Internal
Revenue Code of 1986, as amended.

          “OID Exchange” has the meaning provided in Section 4.25(a).

          “OID Exchange Units” has the meaning provided in Section 4.25(a).

          “Opinion of Counsel” means a written opinion from legal counsel, who may be counsel
for the Company, complying with the requirements of Sections 12.04 and 12.05 as they relate to the
giving of an Opinion of Counsel.

          “Over-Allotment Option” means the over-allotment option granted to the underwriters of
the Initial Notes to purchase up to 2,749,999 additional IDSs to cover overallotments not later
than 30 days after the date of the Prospectus.

          “Parent” means Coinmach Holdings, LLC, a Delaware limited liability company.

          “Paying Agent” has the meaning provided in Section 2.03.

          “Permitted Holders” means (i) GTCR-CLC, LLC or any Affiliate thereof and (ii) members
of management and directors of the Company as of the Issue Date.

          “Permitted Indebtedness” means, without duplication, each of the following:

     (i) Indebtedness under (a) the Notes issued on the Issue Date and the Notes issued in
connection with the exercise of the Over-Allotment Option in an aggregate principal amount
not to exceed $149,451,658.54 and (b) the Subsidiary Guarantees in respect thereof;

     (ii) Indebtedness incurred pursuant to the Credit Agreement in an aggregate principal
amount at any time outstanding not to exceed the greater of (a) $350,000,000, less the
amount of repayments actually made by the Company or any Restricted Subsidiary since the
Issue Date with Net Cash Proceeds of an Asset

-20-

 

Sale in respect of Indebtedness under the Credit Agreement and (b) the product of 3.0
multiplied by the Consolidated EBITDA of the Company during the four full fiscal quarters
ending on the last day of the most recent fiscal quarter for which internal financial
statements are available;

     (iii) other Indebtedness of the Company and its Restricted Subsidiaries outstanding on
the Issue Date;

     (iv) Interest Swap Obligations of the Company or any Restricted Subsidiary of the
Company covering Indebtedness of the Company or any of its Restricted Subsidiaries;
provided, however, that such Interest Swap Obligations are entered into for the purpose of
fixing or hedging interest rates with respect to any fixed or variable rate Indebtedness
that is permitted by this Indenture to be outstanding to the extent that the notional amount
of any such Interest Swap Obligation does not exceed the principal amount of Indebtedness to
which such Interest Swap Obligation relates;

     (v) Indebtedness under Currency Agreements; provided that in the case of Currency
Agreements which relate to Indebtedness, such Currency Agreements do not increase the
Indebtedness of the Company and its Restricted Subsidiaries outstanding other than as a
result of fluctuations in foreign currency exchange rates or by reason of fees, indemnities
and compensation payable thereunder;

     (vi) Indebtedness of a Wholly Owned Restricted Subsidiary of the Company to the Company
or to a Wholly Owned Restricted Subsidiary of the Company for so long as such Indebtedness
is held by the Company or a Wholly Owned Restricted Subsidiary of the Company, in each case
subject to no Lien held by a Person other than the Company or a Wholly Owned Restricted
Subsidiary of the Company (except for the Liens in favor of the Collateral Agent for the
benefit of the Holders of Notes, the Trustee and the Collateral Agent and Permitted Liens of
the type described in clause (xvi) of the definition of “Permitted Liens”); provided
that if as of any date any Person other than the Company or a Wholly Owned Restricted
Subsidiary of the Company owns or holds any such Indebtedness or holds any such Lien in
respect of such Indebtedness, such date shall be deemed the incurrence of Indebtedness not
constituting Permitted Indebtedness by the issuer of such Indebtedness;

     (vii) Indebtedness of the Company to a Wholly Owned Restricted Subsidiary of the
Company for so long as such Indebtedness is held by a Wholly Owned Restricted Subsidiary of
the Company subject to no Lien (except for the Liens in favor of the Collateral Agent for
the benefit of the Holders of Notes, the Trustee and the Collateral Agent and Permitted
Liens of the type described in clause (xvi) of the definition of “Permitted Liens”);
provided that (a) any such Indebtedness is unsecured and subordinated, pursuant to a written
agreement, to the Company’s obligations under this Indenture and the Notes and (b) if as of
any date any Person other than a Wholly

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Owned Restricted Subsidiary of the Company owns or holds any such Indebtedness or any
Person holds any such Lien in respect of such Indebtedness, such date shall be deemed the
incurrence of Indebtedness not constituting Permitted Indebtedness by the Company;

     (viii) Indebtedness arising from the honoring by a bank or other financial institution
of a check, draft or similar instrument inadvertently (except in the case of daylight
overdrafts) drawn against insufficient funds in the ordinary course of business; provided,
however, that such Indebtedness is extinguished within two Business Days of incurrence;

     (ix) Indebtedness of the Company or any of its Restricted Subsidiaries in respect of
bankers’ acceptances or represented by letters of credit for the account of the Company or
such Restricted Subsidiary, as the case may be, in connection with self-insurance or similar
requirements, security for workers’ compensation claims, completion guarantees, appeal
bonds, bid and surety bonds, insurance obligations or bonds, and performance bonds and
similar bonds or obligations, all incurred in the ordinary course of business (including,
without limitation, to maintain any license or permits);

     (x) Indebtedness represented by Capitalized Lease Obligations and Purchase Money
Indebtedness of the Company and its Restricted Subsidiaries incurred in the ordinary course
of business (including Refinancings thereof that do not result in an increase in the
aggregate principal amount of Indebtedness of such Person as of the date of such proposed
Refinancing (plus the amount of any premium required to be paid under the terms of the
instrument governing such Indebtedness and plus the amount of reasonable expenses incurred
by the Company in connection with such Refinancing)) not to exceed $35,000,000 at any one
time outstanding;

     (xi) Refinancing Indebtedness;

     (xii) Guarantees by the Company or a Restricted Subsidiary of Indebtedness incurred by
the Company or a Restricted Subsidiary so long as the incurrence of such Indebtedness by the
Company or any such Restricted Subsidiary is otherwise permitted by the terms of this
Indenture;

     (xiii) Indebtedness arising from agreements of the Company or a Domestic Restricted
Subsidiary providing for indemnification, adjustment of purchase price or similar
obligations, in each case, incurred in connection with the disposition of any business,
assets or Subsidiary, other than Guarantees of Indebtedness incurred by any Person acquiring
all or any portion of such business, assets or Subsidiary for the purpose of financing such
acquisition; provided that the maximum aggregate liability in respect of all such
Indebtedness shall at no time exceed the gross proceeds actually re-

-22-

 

ceived by the Company and such Domestic Restricted Subsidiary in connection with such
disposition;

     (xiv) Indebtedness represented by Additional IDS Notes; provided that

     (a) as of the most recent fiscal quarter ending immediately prior to the date
of issuance of such Additional IDS Notes for which internal financial statements are
available and pro forma for the issuance of the IDSs of which such Additional IDS
Notes form a part and the application of the proceeds from the sale of such IDSs,
the Company would have been permitted under clause (7) of the second paragraph of
Section 4.10 to pay a per share dividend with respect to all Class A Common Stock in
an amount not less than the average per share dividend declared by the Company’s
Board of Directors with respect to the Class A Common Stock for such fiscal quarter
and the fiscal quarter immediately preceding such fiscal quarter, as adjusted for
any separation, combination, reclassification or other like event with respect to
the Class A Common Stock, and

     (b) as of any date of determination, the Company’s Consolidated Interest
Expense, pro forma for the issuance of the IDSs as if they had been issued at the
beginning of the applicable four-quarter period, would have been less than 90% of
its Distributable Cash Flow for the most recently ended four full fiscal quarter
period for which internal financial statements are available;

     (xv) notwithstanding anything to the contrary contained in clauses (xii) and (xiv)
hereof, Indebtedness arising from the Subsidiary Guarantees by the Subsidiary Guarantors;
and

     (xvi) additional Indebtedness of the Company and its Restricted Subsidiaries in an
aggregate principal amount not to exceed $35,000,000 at any one time outstanding (which
amount may, but need not, be incurred in whole or in part under the Credit Agreement).

For purposes of determining compliance under Section 4.12, in the event that an item of
Indebtedness meets the criteria of more than one of the categories of Permitted Indebtedness
described in clauses (i) through (xvi) above or is entitled to be incurred pursuant to the
Consolidated Fixed Charge Coverage Ratio provisions of such Section, the Company shall, in its sole
discretion, classify (or later reclassify) such item of Indebtedness in any manner that complies
with such Section. Accrual of interest, accretion or amortization of original issue discount, the
payment of interest on any Indebtedness in the form of additional Indebtedness with the same terms,
and the payment of dividends on Disqualified Capital Stock in the form of additional shares of the
same class of Disqualified Capital Stock will not be deemed to be

-23-

 

an incurrence of Indebtedness or an issuance of Disqualified Capital Stock for purposes of Section
4.12.

          “Permitted Investments” means (i) Investments by the Company or any Restricted
Subsidiary of the Company in any Person that is or will become immediately after such Investment a
Wholly Owned Restricted Subsidiary of the Company or that will merge or consolidate into the
Company or a Wholly Owned Restricted Subsidiary of the Company; (ii) Investments in the Company by
any Restricted Subsidiary of the Company; provided that any Indebtedness evidencing such Investment
is unsecured and subordinated, pursuant to a written agreement, to the Company’s obligations under
the Notes and this Indenture; (iii) Investments in cash and Cash Equivalents; (iv) loans and
advances to employees and non-executive officers of the Company and its Restricted Subsidiaries in
the ordinary course of business for bona fide business purposes not in excess of the amount
outstanding on the Issue Date plus $1,000,000 at any one time outstanding; (v) Currency Agreements
and Interest Swap Obligations entered into in the ordinary course of the Company’s or its
Restricted Subsidiaries’ businesses and otherwise in compliance with this Indenture; (vi)
additional Investments not to exceed $30,000,000 at any one time outstanding; (vii) Investments in
the Notes and the 9% Coinmach Corp. Notes; (viii) Investments in securities of trade creditors or
customers received pursuant to any plan of reorganization or similar arrangement upon the
bankruptcy or insolvency of such trade creditors or customers; (ix) Investments made by the Company
or its Restricted Subsidiaries as a result of an Asset Sale made in compliance with Section 4.16;
(x) any Investment existing on the Issue Date; (xi) any Investment made in exchange for the
issuance of (a) Capital Stock, other than Disqualified Stock, of the Company or (b) IDSs; and (xii)
Investments in securities received pursuant to any plan of reorganization or similar arrangement
upon the bankruptcy or insolvency of any debtors of the Company or its Restricted Subsidiaries.

          “Permitted Liens” means the following types of Liens:

     (i) Liens for taxes, assessments or governmental charges or claims either (a) not
delinquent or (b) contested in good faith by appropriate proceedings and as to which the
Company or any of its Restricted Subsidiaries shall have set aside on its books such
reserves as may be required pursuant to GAAP;

     (ii) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics,
suppliers, materialmen, repairmen and other Liens imposed by law incurred in the ordinary
course of business for sums not yet delinquent or being contested in good faith, if such
reserve or other appropriate provision, if any, as shall be required by GAAP shall have been
made in respect thereof;

     (iii) Liens incurred or deposits made in the ordinary course of business in connection
with workers’ compensation, unemployment insurance and other types of social security,
including any Lien securing letters of credit issued in the ordinary

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course of business consistent with past practice in connection therewith, or to secure
the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases,
government contracts, performance and return-of-money bonds and other similar obligations
(exclusive of obligations for the payment of borrowed money);

     (iv) judgment Liens not giving rise to an Event of Default so long as such Lien is
adequately bonded and any appropriate legal proceedings which may have been duly initiated
for the review of such judgment shall not have been finally terminated or the period within
which such proceedings may be initiated shall not have expired;

     (v) easements, rights-of-way, zoning restrictions and other similar charges or
encumbrances in respect of real property not interfering in any material respect with the
ordinary conduct of the business of the Company or any of its Restricted Subsidiaries;

     (vi) any interest or title of a lessor under any Capitalized Lease Obligation; provided
that such Liens do not extend to any property or asset which is not leased property subject
to such Capitalized Lease Obligation;

     (vii) Liens securing Capitalized Lease Obligations and Purchase Money Indebtedness
permitted pursuant to clause (x) of the definition of “Permitted Indebtedness”;
provided, however, that in the case of Purchase Money Indebtedness (A) the
Indebtedness shall not exceed the cost of such property or assets and shall not be secured
by any property or assets of the Company or any Restricted Subsidiary of the Company other
than the property and assets so acquired or constructed and (B) the Lien securing such
Indebtedness shall be created within 180 days of such acquisition or construction or, in the
case of a refinancing of any Purchase Money Indebtedness, within 180 days of such
refinancing;

     (viii) Liens upon specific items of inventory or other goods and proceeds of any Person
securing such Person’s obligations in respect of bankers’ acceptances issued or created for
the account of such Person to facilitate the purchase, shipment or storage of such inventory
or other goods;

     (ix) Liens securing reimbursement obligations with respect to commercial letters of
credit which encumber documents and other property relating to such letters of credit and
products and proceeds thereof;

     (x) Liens encumbering deposits made to secure obligations arising from statutory,
regulatory, contractual or warranty requirements of the Company or any of its Restricted
Subsidiaries, including rights of offset and set-off;

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     (xi) Liens securing Interest Swap Obligations which Interest Swap Obligations relate to
Indebtedness that is otherwise permitted under this Indenture;

     (xii) Liens securing Indebtedness under Currency Agreements;

     (xiii) Liens securing Acquired Indebtedness incurred in accordance with Section 4.12;
provided that (A) such Liens secured such Acquired Indebtedness at the time of and
prior to the incurrence of such Acquired Indebtedness by the Company or a Restricted
Subsidiary of the Company and were not granted in connection with, or in anticipation of,
the incurrence of such Acquired Indebtedness by the Company or a Restricted Subsidiary of
the Company and (B) such Liens do not extend to or cover any property or assets of the
Company or of any of its Restricted Subsidiaries other than the property or assets that
secured the Acquired Indebtedness prior to the time such Indebtedness became Acquired
Indebtedness of the Company or a Restricted Subsidiary of the Company and are no more
favorable to the lienholders than those securing the Acquired Indebtedness prior to the
incurrence of such Acquired Indebtedness by the Company or a Restricted Subsidiary of the
Company;

     (xiv) Liens existing as of the Issue Date to the extent and in the manner such Liens
are in effect on the Issue Date;

     (xv) Liens securing the Notes and the Subsidiary Guarantee of Laundry Corp.;

     (xvi) Liens securing borrowings under the Credit Agreement (whether incurred pursuant
to clause (2) of the definition of “Permitted Indebtedness” or any other clause thereof or
pursuant to Section 4.12) including any additional Obligations thereunder (which Liens may
extend to all property now owned or hereafter acquired by the Company or any of its
Subsidiaries);

     (xvii) Liens of the Company or a Wholly Owned Restricted Subsidiary of the Company on
assets of any Restricted Subsidiary of the Company;

     (xviii) Liens securing Indebtedness that is expressly subordinate or junior in right of
payment to the Notes, provided that the Notes are secured by a Lien on such property, assets
or proceeds that is senior in priority to such Liens;

     (xix) Liens securing Refinancing Indebtedness which is incurred to Refinance any
Indebtedness which has been secured by a Lien permitted under this definition and which has
been incurred in accordance with Section 4.12; provided, however, that such Liens (a) are no
less favorable to the Holders of Notes and are not more favorable to the lienholders with
respect to such Liens than the Liens in respect of the Indebtedness being Refinanced; and
(b) do not extend to or cover any property or as-

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sets of the Company or any of its Restricted Subsidiaries not securing the Indebtedness
so Refinanced; and

     (xx) Liens securing assets of the Company in addition to that described in clauses (i)
through (xix) above, so long as the aggregate principal amount of Indebtedness secured by
Liens incurred pursuant to this clause (xx) would not exceed $25,000,000 at any one time
outstanding.

          “Person” means an individual, partnership, corporation, unincorporated organization,
trust or joint venture, or a governmental agency or political subdivision thereof.

          “Physical Note” means a certificated Note that does not bear the legends as set forth
on Exhibit B hereto.

          “Pledge Agreement” means the pledge agreement, dated as of the Issue Date, made by the
Company and Laundry Corp. in favor of the Collateral Agent for the benefit of itself, the Trustee
and the Holders of Notes, substantially in the form of Exhibit I hereto, as amended,
supplemented or modified from time to time in accordance with its terms.

          “Post-Merger Event Collateral” means, after the occurrence of the Merger Event, all
of the Capital Stock of the direct Domestic Subsidiaries and 65% of each class of Capital Stock of
the direct foreign Subsidiaries, in each case of the surviving entity of the Merger Event, as
provided by the Post-Merger Event Pledge Agreement.

          “Post-Merger Event Lien” means a Lien on the Post-Merger Event Collateral created
under the Post-Merger Event Pledge Agreement in favor of the Collateral Agent securing the
Obligations of the Company under or in respect of this Indenture and the Notes.

          “Post-Merger Event Pledge Agreement” means the pledge agreement, dated as of the date
of the Merger Event, made by the surviving entity of the Merger Event in favor of the Collateral
Agent for the benefit of itself, the Trustee and the Holders of Notes, substantially in the form of
Exhibit K hereto, as amended, supplemented or modified from time to time in accordance with
its terms.

          “Preferred Stock” of any Person means any Capital Stock of such Person (other than,
with respect to the Company, the Class A Common Stock and the Class B Common Stock) that has
preferential rights to any other Capital Stock of such Person with respect to dividends or
redemptions or upon liquidation.

          “Premises” has the meaning provided in Section 4.26.

          “Primary Registered Offering” means an offering by the Company of its securities
pursuant to a registration statement filed with Securities and Exchange Commission, but

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excluding an offering by the Company of Exchange Notes in exchange for Notes previously issued
under this Indenture that are “restricted securities” as defined in Rule 144 under the Securities
Act.

          “principal” of any Indebtedness (including the Notes) means the principal amount of
such Indebtedness.

          “Private Placement Legend” means the legend initially set forth on Restricted
Securities in the form set forth in Exhibit B hereto.

          “Proceeds Purchase Date” has the meaning provided in Section 4.16(b).

          “Prospectus” means the Prospectus dated November 19, 2004 relating to the offering of
the Initial Notes.

          “Purchase Money Indebtedness” means Indebtedness of the Company and its Restricted
Subsidiaries incurred in the normal course of business for the purpose of financing all or any part
of the purchase price, or the cost of installation, construction or improvement, of property or
equipment.

          “Qualified Capital Stock” means any Capital Stock that is not Disqualified Capital
Stock, including any such Capital Stock issued as part of an IDS or other unit (but, in the case of
issuance as part of a unit, only to the extent of such Capital Stock).

          “Qualified Institutional Buyer” or “QIB” shall have the meaning specified in
Rule 144A under the Securities Act.

          “Quarterly Base Dividend Level” means, as of any date of determination, (1) 100% of
Distributable Cash Flow minus (2) Consolidated Interest Expense for the most recent fiscal quarter
prior to such date of determination for which internal financial statements are available.

          “Real Property” means any interest in any real property or any portion thereof whether
owned in fee or leased or otherwise.

          “Record Date” means any of the Record Dates specified in the Notes, whether or not a
Legal Holiday.

          “Redemption Date” means, when used with respect to any Note to be redeemed, the date
fixed for such redemption pursuant to this Indenture and the Notes.

          “Redemption Price,” when used with respect to any Note to be redeemed, means the price
fixed for such redemption pursuant to this Indenture and the Notes.

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          “Redemption Right” means the right of the Company under its certificate of
incorporation to redeem its shares of Class B Common Stock under the circumstances and subject to
the provisions of Section 4.21 and the terms and conditions set forth in the certificate of
incorporation of the Company as in effect on the Issue Date and any amendment thereto so long as
any such amendment in respect of such right is not adverse to the Holders.

          “Reference Date” has the meaning provided in Section 4.10.

          “Reference Treasury Dealer” means one of five independent investment banking firms of
national reputation, or their respective affiliates, selected by the Company, which are primary
U.S. Government securities dealers in The City of New York.

          “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any Redemption Date, the average, as determined by the Trustee, of the bid and ask
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 3:30 p.m., New York
time, on the third Business Day preceding such Redemption Date.

          “Refinance” means, in respect of any security or Indebtedness, to refinance, extend,
renew, refund, repay, prepay, redeem, defease or retire, or to issue a security or Indebtedness in
exchange or replacement for, such security or Indebtedness in whole or in part. “Refinanced” and
“Refinancing” shall have correlative meanings.

          “Refinancing Indebtedness” means any Refinancing by the Company or any Restricted
Subsidiary of the Company of Indebtedness incurred in accordance with Section 4.12 (other than
pursuant to clause (ii), (iv), (v), (vi), (vii), (viii), (ix), (x), (xii), (xiii), (xiv) or (xvi)
of the definition of “Permitted Indebtedness”), in each case that does not (1) result in an
increase in the aggregate principal amount of Indebtedness of such Person as of the date of such
proposed Refinancing (plus the amount of any premium required to be paid under the terms of the
instrument governing such Indebtedness plus the amount of reasonable expenses incurred by the
Company in connection with such Refinancing) or (2) create Indebtedness with (A) a Weighted Average
Life to Maturity that is less than the Weighted Average Life to Maturity of the Indebtedness being
Refinanced or (B) a final maturity earlier than the final maturity of the Indebtedness being
Refinanced; provided that (x) if such Indebtedness being Refinanced is Indebtedness of the Company,
then such Refinancing Indebtedness shall be Indebtedness solely of the Company and (y) if such
Indebtedness being Refinanced is subordinate or junior to the Notes, then such Refinancing
Indebtedness shall be subordinate to the Notes at least to the same extent and in the same manner
as the Indebtedness being Refinanced; provided further that, with respect to clause
(xiv) of the definition of “Permitted Indebtedness,” such Additional Notes have been separated from
the Company’s Common Stock and no longer form part of an IDS.

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          “Registrar” has the meaning provided in Section 2.03.

          “Registration Rights Agreement” means a registration rights agreement relating to
Notes issued hereunder, between the Company, Parent and the Subsidiary Guarantors, as the same may
be amended or modified from time to time in accordance with the terms thereof.

          “Regulation S” means Regulation S under the Securities Act.

          “Replacement Assets” has the meaning provided in Section 4.16(a).

          “Restricted Payment” has the meaning provided in Section 4.10.

          “Restricted Security” has the meaning assigned to such term in Rule 144(a)(3) under
the Securities Act; provided that the Trustee shall be entitled to request and conclusively rely on
an Opinion of Counsel with respect to whether any Note constitutes a Restricted Security.

          “Restricted Subsidiary” of any Person means any Subsidiary of such Person which at the
time of determination is not an Unrestricted Subsidiary.

          “Rule 144A” means Rule 144A under the Securities Act.

          “Sale and Leaseback Transaction” means any direct or indirect arrangement with any
Person or to which any such Person is a party providing for the leasing to the Company or a
Restricted Subsidiary of any property, whether owned by the Company or any Restricted Subsidiary at
the Issue Date or later acquired, which has been or is to be sold or transferred by the Company or
such Restricted Subsidiary to such Person or to any other Person from whom funds have been or are
to be advanced by such Person on the security of such Property.

          “Sales Right” means the right of a holder of Class B Common Stock under the
certificate of incorporation of the Company to cause the Company to redeem such shares of Class B
Common Stock, under the circumstances and subject to the provisions of Section 4.21 and the terms
and conditions set forth in the certificate of incorporation of the Company as in effect on the
Issue Date and any amendment thereto so long as any such amendment in respect of such right is not
adverse to the Holders.

          “Satisfaction and Discharge” has the meaning provided in Section 8.02.

          “SEC” means the Securities and Exchange Commission.

          “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.

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          “Security Agreement” means the Security Agreement, dated as of the Issue Date, made by
the Company and Laundry Corp. in favor of the Collateral Agent for the benefit of itself, the
Trustee and the Holders of Notes, substantially in the form of Exhibit H hereto, as
amended, supplemented or modified from time to time in accordance with its terms.

          “Separation Event of Default” means an Event of Default pursuant to clause (1), (2),
(4) or (5) of Section 6.01; provided that

     (i) with respect to such clause (4), only an Event of Default pursuant to a default in
the observance or performance of any of the covenants described under Sections 4.10 and 4.12
shall constitute a Separation Event of Default,

     (ii) with respect to such clause (5), only an Event of Default pursuant to a default
with respect to the Intercompany Note shall constitute a Separation Event of Default, and

     (iii) solely for purposes of this definition, any event pursuant to such clause (4) or
(5) shall constitute an Event of Default on the earlier to occur of (A) 31 days after the
giving of written notice as described therein (or, in the case of such clause (5), 21 days
after the giving of such notice) and (B) the passage of 120 days from the occurrence of the
related Default.

          “Significant Subsidiary,” with respect to any Person, means any Restricted Subsidiary
of such Person that satisfies the criteria for a “significant subsidiary” set forth in Rule 1.02(w)
of Regulation S-X under the Exchange Act.

          “Subsidiary,” with respect to any Person, means (i) any corporation of which the
outstanding Capital Stock having at least a majority of the votes entitled to be cast in the
election of directors under ordinary circumstances shall at the time be owned, directly or
indirectly, by such Person or (ii) any other Person of which at least a majority of the voting
interest under ordinary circumstances is at the time, directly or indirectly, owned by such Person.

          “Subsidiary Guarantee” has the meaning provided in Section 10.01.

          “Subsidiary Guarantor” means Laundry Corp. and each of the Company’s Restricted
Subsidiaries that in the future executes a supplemental indenture in which such Restricted
Subsidiary agrees to be bound by the terms of this Indenture as a Subsidiary Guarantor;
provided that any Person constituting a Subsidiary Guarantor hereunder shall cease to
constitute a Subsidiary Guarantor when its Subsidiary Guarantee is released in accordance with the
terms of this Indenture.

          “Surviving Entity” has the meaning provided in Section 5.01(a).

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          “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb), as amended,
as in effect on the date of this Indenture, except as otherwise provided in Section 9.03.

          “Total Remaining Payments,” with respect to any Indebtedness means, as of any date,
the sum of the aggregate amount of payments due on such Indebtedness from such date through the
stated maturity of such Indebtedness.

          “Total Remaining Payments Tests” means, as of any date, that

     (1) the ratio of (A) the difference between (i) the Total Remaining Payments on all
senior unsecured Indebtedness represented by the Intercompany Note that is pledged as
Collateral for the Notes and (ii) the Total Remaining Payments on any obligations of
Coinmach Corp. in respect of Indebtedness secured by Permitted Liens (other than Permitted
Liens securing Indebtedness of the Company), to (B) the Total Remaining Payments on the
outstanding Notes (including outstanding Additional Notes, if any), and

     (2) the ratio of (A) the principal amount of net Indebtedness determined in clause
(1)(A) of this definition to (B) the principal amount of the outstanding Notes (including
outstanding Additional Notes, if any),

in each case are 1.0 to 1.0 or greater.

          “Transactions” means the transactions described under the section of the Prospectus
entitled “The Transactions.”

          “Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal
to the quarterly equivalent yield to maturity or interpolated, on a day count basis, of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue, expressed as a
percentage of its principal amount, equal to the Comparable Treasury Price for such Redemption
Date.

          “Trust Officer” means any officer of the Trustee assigned by the Trustee to administer
this Indenture or, in the case of a successor trustee, an officer assigned to the department,
division or group performing the corporation trust work of such successor and assigned to
administer this Indenture.

          “Trustee” means the party named as such in this Indenture until a successor replaces
it in accordance with the provisions of this Indenture and thereafter means such successor.

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          “2004 LTIP” means the 2004 Long Term Incentive Plan of Coinmach Corp. as the same may
be amended, modified or supplemented from time to time in accordance with its terms.

          “Unrestricted Subsidiary” of any Person means (i) any Subsidiary of such Person that
at the time of determination shall be or continue to be designated an Unrestricted Subsidiary by
the Board of Directors of such Person in the manner provided below and (ii) any Subsidiary of an
Unrestricted Subsidiary. The Board of Directors may designate any Subsidiary (including any newly
acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary owns
any Capital Stock of, or owns or holds any Lien on any property of, the Company or any other
Subsidiary of the Company that is not a Subsidiary of the Subsidiary to be so designated; provided
that (x) the Company certifies to the Trustee that such designation complies with Section 4.10 and
(y) each Subsidiary to be so designated and each of its Subsidiaries has not at the time of
designation, and does not thereafter, create, incur, issue, assume, Guarantee or otherwise become
directly or indirectly liable with respect to any Indebtedness pursuant to which the lender has
recourse to any of the assets of the Company or any of its Restricted Subsidiaries. The Board of
Directors may designate any Unrestricted Subsidiary to be a Restricted Subsidiary only if (x)
immediately after giving effect to such designation, the Company is able to incur at least $1.00 of
additional Indebtedness (other than Permitted Indebtedness) in compliance with Section 4.12 and (y)
immediately before and immediately after giving effect to such designation, no Default or Event of
Default shall have occurred and be continuing. Any such designation by the Board of Directors
shall be evidenced to the Trustee by promptly filing with the Trustee a copy of the Board
Resolution giving effect to such designation and an Officers’ Certificate certifying that such
designation complied with the foregoing provisions.

          “U.S. Government Obligations” means non-callable direct obligations of, and
non-callable obligations guaranteed by, the United States of America for the payment of which the
full faith and credit of the United States of America is pledged.

          “U.S. Legal Tender” means such coin or currency of the United States of America as at
the time of payment shall be legal tender for the payment of public and private debts.

          “U.S. Physical Notes” has the meaning provided in Section 2.01.

          “Voting Stock” means, with respect to any Person, securities of any class or classes
of Capital Stock in such Person entitling the holders thereof (whether at all times or only so long
as no senior class of stock has voting power by reason of any contingency) to vote in the election
of members of the Board of Directors of such Person.

          “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any
date, the number of years obtained by dividing (a) the then outstanding aggregate

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principal amount of such Indebtedness into (b) the sum of the total of the products obtained
by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or
other required payment of principal, including payment at final maturity, in respect thereof, by
(ii) the number of years (calculated to the nearest one-twelfth) which will elapse between such
date and the making of such payment.

          “Wholly Owned Restricted Subsidiary” of any Person means any Wholly Owned Subsidiary
of such Person which at the time of determination is a Restricted Subsidiary of such Person.

          “Wholly Owned Subsidiary” of any Person means any Subsidiary of such Person of which
all the outstanding voting securities (other than in the case of a foreign Subsidiary, directors’
qualifying shares or an immaterial amount of shares required to be owned by other Persons pursuant
to applicable law) are owned by such Person or any Wholly Owned Subsidiary of such Person.

          “Working Capital” means, at any date of determination, the consolidated assets of the
Company and its Restricted Subsidiaries that are classified as current assets in accordance with
GAAP, less the consolidated liabilities of the Company and its Restricted Subsidiaries which are
classified as current liabilities in accordance with GAAP.

          SECTION 1.02. Incorporation by Reference of TIA.

          Whenever this Indenture refers to a provision of the TIA, such provision is incorporated by
reference in, and made a part of, this Indenture. The following TIA terms used in this Indenture
have the following meanings:

     “indenture securities” means the Notes.

     “indenture security holder” means a Holder.

     “indenture to be qualified” means this Indenture.

     “indenture trustee” or “institutional trustee” means the Trustee.

     “obligor” on the indenture securities means the Company or any other obligor on
the Notes.

          All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule and not otherwise defined herein have the
meanings assigned to them therein.

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          SECTION 1.03. Rules of Construction.

          Unless the context otherwise requires:

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

     (2) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

     (3) “or” is not exclusive;

     (4) words in the singular include the plural, and words in the plural include the
singular; and

     (5) “herein,” “hereof” and other words of similar import refer to this Indenture as a
whole and not to any particular Article, Section or other subdivision.

ARTICLE TWO

THE NOTES

          SECTION 2.01. Form and Dating.

          The Initial Notes and Additional Notes issued pursuant to a Primary Registered Offering and
the Trustee’s certificate of authentication related thereto shall be substantially in the form of
Exhibit A hereto. Additional Notes that are Restricted Securities and the Trustee’s
certificate of authentication related thereto shall be substantially in the form of Exhibit
B hereto. The Notes may have notations, legends or endorsements required by law, stock
exchange rule or depository rule or usage. The Company and the Trustee shall approve the form of
the Notes and any notation, legend or endorsement on them. Each Note shall be dated the date of
its authentication. The Notes shall be in denominations of $6.14 and integral multiples thereof.

          The terms and provisions contained in the Notes, the forms of which are annexed hereto as
Exhibits A and B, shall constitute, and are hereby expressly made, a part of this
Indenture and, to the extent applicable, the Company, the Subsidiary Guarantors, the Collateral
Agent and the Trustee, by their execution and delivery of this Indenture, expressly agree to such
terms and provisions and to be bound thereby.

          Notes offered and sold in reliance of Rule 144A shall be issued initially in the form of one
or more permanent Global Notes in registered form, substantially in the form set forth in
Exhibit B hereto (“Global Notes”), deposited with the Trustee, as custodian for the

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Depository, duly executed by the Company and authenticated by the Trustee as hereinafter
provided and shall bear the legend set forth on Exhibit C hereto. The aggregate principal
amount of any Global Note may from time to time be increased or decreased by adjustments made on
the records of the Trustee, as custodian for the Depository, as hereinafter provided.

          Notes offered and sold in offshore transactions in reliance on Regulation S shall be issued
initially in the form of one or more Global Notes deposited with the Trustee, as custodian for the
Depository, duly executed by the Company and authenticated by the Trustee as hereinafter provided
and shall bear the legend set forth on Exhibit C hereto or shall be issued in the form of
certificated Notes in registered form set forth in Exhibit B hereto (the “Offshore
Physical Notes”). Notes offered and sold in reliance on any other exemption from registration
under the Securities Act other than as described in the preceding paragraph shall be issued, and
Notes offered and sold in reliance on Rule 144A may be issued, in the form of certificated Notes in
registered form in substantially the form set forth in Exhibit B hereto (the “U.S.
Physical Notes”). The Offshore Physical Notes and the U.S. Physical Notes are sometimes
collectively herein referred to as the “Physical Notes.”

          Except as provided in Section 2.06 and 2.14, owners of beneficial interests in Global Notes
will not be entitled to receive physical delivery of certificated Notes.

          Members of, or participants in, the Depository (“Agent Members”) shall have no rights
under this Indenture with respect to any Global Note held on their behalf by the Depository, or the
Trustee as its custodian, or under the Global Note, and the Depository may be treated by the
Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of the
Global Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the Depository or impair, as
between the Depository and its Agent Members, the operation of customary practices governing the
exercise of the rights of a holder of beneficial interest in any Global Note.

          SECTION 2.02. Execution and Authentication; Aggregate Principal Amount.

          Two Officers, or an Officer and an Assistant Secretary, shall sign, or one Officer shall sign
and one Officer or an Assistant Secretary (each of whom shall, in each case, have been duly
authorized by all requisite corporate actions) shall attest to, the Notes for the Company by manual
or facsimile signature.

          If an Officer or Assistant Secretary whose signature is on a Note was an Officer or Assistant
Secretary at the time of such execution but no longer holds that office or position at the time the
Trustee authenticates the Note, the Note shall nevertheless be valid.

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          A Note shall not be valid until an authorized signatory of the Trustee manually signs the
certificate of authentication on the Note. The signature shall be conclusive evidence that the
Note has been authenticated under this Indenture.

          The Trustee shall authenticate (i) Initial Notes for original issue in the aggregate principal
amount not to exceed $132,566,664.68 and (ii) subject to compliance with Section 4.12, one or more
series of Notes for original issue after the Issue Date (such Notes to be substantially in the form
of Exhibit A hereto or Exhibit B hereto) in an unlimited amount (“Additional
Notes”) in each case upon written orders of the Company in the form of an Officers’
Certificate, which Officers’ Certificate shall, in the case of any issuance of Additional Notes,
certify that such issuance is in compliance with Section 4.12. In addition, each Officers’
Certificate shall specify the amount of Notes to be authenticated and the date on which the Notes
are to be authenticated, whether the Notes are to be Initial Notes or Additional Notes, and shall
further specify that such Notes shall be issued as Global Notes or Physical Notes. All Notes
issued under this Indenture shall vote and consent together on all matters as one class and no
series of Notes will have the right to vote or consent as a separate class on any matter.

          The Trustee may appoint an authenticating agent (the “Authenticating Agent”)
reasonably acceptable to the Company to authenticate Notes. Unless otherwise provided in the
appointment, an Authenticating Agent may authenticate Notes whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes authentication by such
Authenticating Agent. An Authenticating Agent has the same rights as an Agent to deal with the
Company and Affiliates of the Company.

          The Notes shall be issuable in fully registered form only, without coupons.

          SECTION 2.03. Registrar and Paying Agent.

          The Company shall maintain an office or agency (which shall be located in the Borough of
Manhattan in the City of New York, State of New York), which shall initially be The Bank of New
York, where (a) Notes may be presented or surrendered for registration of transfer or for exchange
(“Registrar”), (b) Notes may be presented or surrendered for payment (“Paying
Agent”) and (c) notices and demands to or upon the Company in respect of the Notes and this
Indenture may be served. The Registrar shall keep a register of the Notes and of their transfer
and exchange. The Company, upon prior written notice to the Trustee, may have one or more
co-Registrars and one or more additional Paying Agents reasonably acceptable to the Trustee. The
term “Paying Agent” includes any additional Paying Agent. Neither the Company nor any Affiliate of
the Company may act as Paying Agent.

          The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture, which agreement shall incorporate the provisions of the TIA and implement the
provisions of this Indenture that relate to such Agent. The Company shall no-

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tify the Trustee, in advance, of the name and address of any such Agent. If the Company fails
to maintain a Registrar or Paying Agent, or fails to give the foregoing notice, the Trustee shall
act as such.

          The Company initially appoints the Trustee as Registrar, Paying Agent and agent for service of
demands and notices in connection with the Notes, until such time as the Trustee has resigned or a
successor has been appointed. The Paying Agent or Registrar may resign upon 30 days’ notice to the
Company.

          SECTION 2.04. Paying Agent To Hold Assets in Trust.

          The Company shall require each Paying Agent other than the Trustee to agree in writing that
such Paying Agent shall hold in trust for the benefit of the Holders or the Trustee all assets held
by the Paying Agent for the payment of principal of, or interest on, the Notes (whether such assets
have been distributed to it by the Company or any other obligor on the Notes), and the Company and
the Paying Agent shall notify the Trustee of any Default by the Company (or any other obligor on
the Notes) in making any such payment. The Company at any time may require a Paying Agent to
distribute all assets held by it to the Trustee and account for any assets disbursed and the
Trustee may at any time during the continuance of any payment Default, upon written request to a
Paying Agent, require such Paying Agent to distribute all assets held by it to the Trustee and to
account for any assets distributed. Upon distribution to the Trustee of all assets that shall have
been delivered by the Company to the Paying Agent, the Paying Agent shall have no further liability
for such assets.

          SECTION 2.05. Holder Lists.

          The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of the Holders and shall otherwise comply with TIA
§ 312(a). If the Trustee is not the Registrar, the Company shall furnish or cause the Registrar to
furnish to the Trustee before each Record Date and at such other times as the Trustee may request
in writing a list as of such date and in such form as the Trustee may reasonably require of the
names and addresses of the Holders, which list may be conclusively relied upon by the Trustee.

          SECTION 2.06. Transfer and Exchange.

          (a) When Notes are presented to the Registrar or a co-Registrar with a request to register the
transfer of such Notes or to exchange such Notes for an equal principal amount of Notes of other
authorized denominations, the Registrar or co-Registrar shall register the transfer or make the
exchange as requested if its requirements for such transaction are met, including the requirements
of Section 8-401(a)(1) of the Uniform Commercial Code. To permit registrations of transfer and
exchanges, the Company shall execute and the Trustee shall authenticate Physical Notes or Global
Notes at the Registrar’s or co-Registrar’s request.

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No service charge shall be made for any registration of transfer or exchange, but the Company
may require payment of a sum sufficient to cover any transfer tax or similar governmental charge
payable in connection therewith (other than any such transfer taxes or similar governmental charge
payable upon exchanges or transfers pursuant to Section 2.10, 3.06, 4.15, 4.16 or 9.05, in which
event the Company shall be responsible for the payment of such taxes).

          The Registrar or co-Registrar shall not be required to register the transfer or exchange of
any Note (i) during a period beginning at the opening of business 15 days before the mailing of a
notice of redemption of Notes and ending at the close of business on the day of such mailing and
(ii) selected for redemption in whole or in part pursuant to Article Three, except the unredeemed
portion of any Note being redeemed in part.

          (b) When Physical Notes are presented to the Registrar or co-Registrar with a request to
register the transfer of such Physical Notes or to exchange such Physical Notes for an equal
principal amount of Physical Notes of other authorized denominations, the Registrar or co-Registrar
shall register the transfer or make the exchange as requested if its reasonable requirements for
such transaction are met; provided, however, that the Physical Notes surrendered for transfer or
exchange:

     (i) shall be duly endorsed or accompanied by a written instrument or transfer in form
reasonably satisfactory to the Company and the Registrar or co-Registrar, duly executed by
the Holder thereof or such Holder’s attorney duly authorized in writing; and

     (ii) are accompanied by the following additional information and documents, as
applicable:

     (A) if such Physical Notes are being delivered to the Registrar or co-Registrar
by a Holder for registration in the name of such Holder, without transfer, a
certification from such Holder to that effect; or

     (B) if such Physical Notes are being transferred to the Company, a
certification to that effect.

          (c) A Physical Note may not be exchanged for a beneficial interest in a Global Note except
upon satisfaction of the requirements set forth below. Upon receipt by the Trustee of a Physical
Note, duly endorsed or accompanied by a written instrument of transfer in form reasonably
satisfactory to the Company and the Registrar or co-Registrar, together with written instructions
directing the Trustee to make, or to direct the custodian for the Depository to make, an adjustment
on its books and records with respect to such Global Note to reflect an increase in the aggregate
principal amount of the Notes represented by the Global Note, such instructions to contain
information regarding the Depository account to be credited with such increase, then the Trustee
shall cancel such Physical Note and cause, or direct the

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custodian for the Depository to cause, in accordance with the standing instructions and
procedures existing between the Depository and the custodian for the Depository, the aggregate
principal amount of Notes represented by the Global Notes to be increased by the aggregate
principal amount of the Physical Note to be exchanged and shall credit or cause to be credited to
the account of the Person specified in such instructions a beneficial interest in the Global Note
equal to the principal amount of the Physical Note so canceled. If no Global Notes are then
outstanding and the Global Note has not been previously exchanged for certificated securities
pursuant to Section 2.14, the Company shall issue and the Trustee shall authenticate, upon written
order of the Company in the form of an Officers’ Certificate, a new Global Note in the appropriate
principal amount.

          (d) (a) Any Holder of a Global Note shall, by acceptance of such Global Note agree that
transfers of beneficial interest in such Global Note may be effected only through a book-entry
system maintained by (x) the Holder of such Global Note (or its agent) or (y) any Holder of a
beneficial interest in such Global Note, and that ownership of a beneficial interest in such Global
Note shall be required to be reflected in a book entry.

          (i) The transfer and exchange of Global Notes or beneficial interests therein shall be
effected through the Depository, in accordance with this Indenture (including applicable
restrictions on transfer set forth herein, if any) and the Applicable Procedures of the Depository
therefor. A transferor or a beneficial interest in a Global Note shall deliver a written order
given in accordance with the Depository’s procedures containing information regarding the
participant account of the Depository to be credited with a beneficial interest in such Global Note
or another Global Note and such account shall be credited in accordance with such order with a
beneficial interest in the applicable Global Note and the account of the Person making the transfer
shall be debited by an amount equal to the beneficial interest in the Global Note being
transferred.

          (ii) Notwithstanding any other provisions of this Article 2 (other than the provisions set
forth in Section 2.14), a Global Note may not be transferred as a whole except by the Depository to
a nominee of the Depository or by a nominee of the Depository to the Depository or another nominee
of the Depository or by the Depository or any such nominee to a successor Depository or a nominee
of such successor Depository.

          (e) At such time as all beneficial interests in a Global Note have either been exchanged for
Physical Notes, transferred, redeemed, repurchased or canceled, such Global Note shall be returned
by the Depository to the Trustee for cancellation or retained and canceled by the Trustee. At any
time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for
Physical Notes, transferred in exchange for an interest in another Global Note, redeemed,
repurchased or canceled, the principal amount of Notes represented by such Global Note shall be
reduced and an adjustment shall be made on the books and records of the Trustee (if it is then the
custodian for the Depository for such Global Note)

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with respect to such Global Note, by the Trustee or the custodian for the Depository, to
reflect such reduction.

          (f) Prior to the due presentation for registration of transfer of any Note, the Company, the
Trustee, the Paying Agent, the Registrar or the co-Registrar may deem and treat the person in whose
name a Note is registered as the absolute owner of such Note for the purpose of receiving payment
of principal of and interest on such Note and for all other purposes whatsoever, whether or not
such Note is overdue, and none of the Company, the Trustee, the Paying Agent, the Registrar or the
co-Registrar shall be affected by notice to the contrary.

          (g) All Notes issued upon any transfer or exchange pursuant to the terms of this Indenture
shall evidence the same debt and shall be entitled to the same benefits under this Indenture as the
Notes surrendered upon such transfer or exchange.

          SECTION 2.07. Replacement Notes.

          If a mutilated Note is surrendered to the Trustee or if the Holder of a Note claims that the
Note has been lost, destroyed or wrongfully taken, the Company shall issue and the Trustee shall
authenticate a replacement Note if the Trustee’s requirements are met. If required by the Trustee
or the Company, such Holder must provide an affidavit of lost certificate and an indemnity bond or
other indemnity, sufficient in the judgment of both the Company and the Trustee, to protect the
Company, the Trustee or any Agent from any loss which any of them may suffer if a Note is replaced.
The Company may charge such Holder for its reasonable out-of-pocket expenses in replacing a Note,
including reasonable fees and expenses of its counsel and of the Trustee and its counsel. Every
replacement Note shall constitute an additional obligation of the Company.

          SECTION 2.08. Outstanding Notes.

          Notes outstanding at any time are all the Notes that have been authenticated by the Trustee
except those cancelled by it, those delivered to it for cancellation and those described in this
Section as not outstanding. Subject to the provisions of Section 2.09, a Note does not cease to be
outstanding because the Company or any of its Affiliates holds the Note.

          If a Note is replaced pursuant to Section 2.07 (other than a mutilated Note surrendered for
replacement), it ceases to be outstanding unless the Trustee receives proof satisfactory to it that
the replaced Note is held by a bona fide purchaser. A mutilated Note ceases to be outstanding upon
surrender of such Note and replacement thereof pursuant to Section 2.07.

          If on a Redemption Date or the Maturity Date the Paying Agent holds U.S. Legal Tender or U.S.
Government Obligations sufficient to pay all of the principal and interest due on the Notes payable
on that date and is not prohibited from paying such money to the

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Holders thereof pursuant to the terms of this Indenture, then on and after that date such
Notes cease to be outstanding and interest on them ceases to accrue.

          SECTION 2.09. Treasury Notes.

          In determining whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver, consent or notice, Notes owned by the Company or any of its Affiliates shall
be considered as though they are not outstanding, except that for the purposes of determining
whether the Trustee shall be protected in relying on any such direction, waiver or consent, only
Notes which a Trust Officer of the Trustee actually knows are so owned shall be so considered. The
Company shall notify the Trustee, in writing (which notice shall constitute actual notice for
purposes of the foregoing sentence), when it or any of its Affiliates repurchases or otherwise
acquires Notes, of the aggregate principal amount of such Notes so repurchased or otherwise
acquired.

          SECTION 2.10. Temporary Notes.

          In the event that Physical Notes are to be issued under the terms of this Indenture, until
such Physical Notes are ready for delivery, the Company may prepare and the Trustee shall
authenticate temporary Notes upon receipt of a written order of the Company in the form of an
Officers’ Certificate. The Officers’ Certificate shall specify the amount of temporary Notes to be
authenticated and the date on which the temporary Notes are to be authenticated. Temporary Notes
shall be substantially in the form of Physical Notes but may have variations that the Company
considers appropriate for temporary Notes. Without unreasonable delay, the Company shall prepare
and the Trustee shall, upon receipt of a written order of the Company pursuant to Section 2.02,
authenticate Physical Notes in exchange for temporary Notes.

          SECTION 2.11. Cancellation.

          The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and
the Paying Agent shall forward to the Trustee any Notes surrendered to them for transfer, exchange
or payment. The Trustee, or at the direction of the Trustee, the Registrar or the Paying Agent,
and no one else, shall cancel and, at the written direction of the Company, shall dispose of all
Notes surrendered for transfer, exchange, payment or cancellation. Subject to Section 2.07, the
Company may not issue new Notes to replace Notes that it has paid or delivered to the Trustee for
cancellation. If the Company shall acquire any of the Notes, such acquisition shall not operate as
a redemption or satisfaction of the Indebtedness represented by such Notes unless and until the
same are surrendered to the Trustee for cancellation pursuant to this Section 2.11.

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          SECTION 2.12. CUSIP Number.

          A “CUSIP” number will be printed on the Notes, and the Trustee shall use the CUSIP number in
notices of redemption, purchase or exchange as a convenience to Holders; provided that any
such notice may state that no representation is made as to the correctness or accuracy of the CUSIP
number printed in the notice or on the Notes and that reliance may be placed only on the other
identification numbers printed on the Notes. The Company will promptly notify the Trustee of any
change in the CUSIP number or any CUSIP number established with respect to any OID Exchange Units
created in accordance with Section 4.25 and any related cancellation of previous CUSIP numbers
assigned to Notes or OID Exchange Units, as the case may be.

          SECTION 2.13. Deposit of Moneys.

          Prior to 11:00 a.m. New York City time on each Interest Payment Date and the Maturity Date,
the Company shall have deposited with the Paying Agent in immediately available funds money
sufficient to make cash payments, if any, due on such Interest Payment Date or the Maturity Date,
as the case may be, in a timely manner which permits the Paying Agent to remit payment to the
Holders on such Interest Payment Date or Maturity Date, as the case may be.

          SECTION 2.14. Physical Notes.

          (a) A Global Note deposited with the Depository or with the Trustee as custodian for the
Depository pursuant to Section 2.01 shall be transferred to the beneficial owners thereof in the
form of Physical Notes in an aggregate principal amount equal to the principal amount of such
Global Note, in exchange for such Global Note, only if such transfer complies with Section 2.06 and
(i) the Depository notifies the Company that it is unwilling or unable to continue as a Depository
for such Global Note or if at any time the Depository ceases to be a “clearing agency” registered
under the Exchange Act, and a successor depository is not appointed by the Company within 90 days
of such notice or (ii) the Company, in its sole discretion, notifies the Trustee in writing that it
elects to cause the issuance of certificated Notes under this Indenture.

          (b) Any Global Note that is transferable to the beneficial owners thereof pursuant to this
Section 2.14 shall be surrendered by the Depository to the Trustee, to be so transferred, in whole
or from time to time in part, without charge, and the Trustee shall authenticate and deliver, upon
such transfer of each portion of such Global Note, an equal aggregate principal amount of Physical
Notes of authorized denominations. Any portion of a Global Note transferred pursuant to this
Section 2.14 shall be registered in such names as the Depository shall direct.

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          (c) Subject to the provisions of Section 2.14(b), the registered Holder of a Global Note may
grant proxies and otherwise authorize any Person, including Agent Members and Persons that may hold
interests through Agent Members, to take any action which a Holder is entitled to take under this
Indenture or the Notes.

          (d) In the event of the occurrence of any of the events specified in Section 2.14(a)(i), (ii)
or (iii), the Company will promptly make available to the Trustee a reasonable supply of Physical
Notes in fully registered form without interest coupons.

          (e) Any Physical Note constituting a Restricted Security delivered in exchange for an interest
in the Global Note pursuant to clause (b) or (c) above shall, except as otherwise provided by
clauses (a)(i)(x) and (c) of Section 2.15, bear the legend regarding transfer restrictions
applicable to the Physical Notes set forth in Exhibit B.

          SECTION 2.15. Special Transfer Provisions.

          (a) Transfers to Non-QIB Institutional Accredited Investors and Non-U.S. Persons. The
following provisions shall apply with respect to the registration of any proposed transfer of a
Note constituting a Restricted Security to any Institutional Accredited Investor which is not a QIB
or to any Non-U.S. Person:

     (i) the Registrar shall register the transfer of any Note constituting a Restricted
Security, whether or not such Note bears the Private Placement Legend, if (x) the requested
transfer is subsequent to a date which is two years after the later of the Issue Date and
the last date on which the Company or any of its affiliates was the owner of such Note or
(y) (1) in the case of a transfer to an Institutional Accredited Investor which is not a QIB
(excluding Non-U.S. Persons), the proposed transferee has delivered to the Registrar a
certificate substantially in the form of Exhibit D hereto or (2) in the case of a
transfer to a Non-U.S. Person, the proposed transferor has delivered to the Registrar a
certificate substantially in the form of Exhibit E hereto; and

     (ii) if the proposed transferor is an Agent Member holding a beneficial interest in the
Global Note, upon receipt by the Registrar of (x) the certificate, if any, required by
paragraph (i) above and (y) instructions given in accordance with the Applicable Procedures
and the Registrar’s procedures,

whereupon (a) the Registrar shall reflect on its books and records the date and (if the transfer
does not involve a transfer of outstanding Physical Notes) a decrease in the principal amount of
the Global Note in an amount equal to the principal amount of the beneficial interest in the Global
Note to be transferred, and (b) the Company shall execute and the Trustee shall authenticate and
deliver one or more Physical Notes of like tenor and amount.

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          (b) Transfers to QIBs. The following provisions shall apply with respect to the
registration of any proposed transfer of a Note constituting a Restricted Security to a QIB
(excluding transfers to Non-U.S. Persons):

     (i) the Registrar shall register the transfer if such transfer is being made by a
proposed transferor who has checked the box provided for on the form of Note stating, or has
otherwise advised the Company and the Registrar in writing, that the sale has been made in
compliance with the provisions of Rule 144A to a transferee who has signed the certification
provided for on the form of Note stating, or has otherwise advised the Company and the
Registrar in writing, that it is purchasing the Note for its own account or an account with
respect to which it exercises sole investment discretion and that it and any such account is
a QIB within the meaning of Rule 144A, and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such information regarding the
Company as it has requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon its foregoing
representations in order to claim the exemption from registration provided by Rule 144A; and

     (ii) if the proposed transferee is an Agent Member, and the Notes to be transferred
consist of Physical Notes which after transfer are to be evidenced by an interest in the
Global Note, upon receipt by the Registrar of instructions given in accordance with the
Applicable Procedures and the Registrar’s procedures, the Registrar shall reflect on its
books and records the date and an increase in the principal amount of the Global Note in an
amount equal to the principal amount of the Physical Notes to be transferred, and the
Trustee shall cancel the Physical Notes so transferred.

          (c) Private Placement Legend. Upon the transfer, exchange or replacement of Notes not
bearing the Private Placement Legend, the Registrar shall deliver Notes that do not bear the
Private Placement Legend. Upon the transfer, exchange or replacement of Notes bearing the Private
Placement Legend, the Registrar shall deliver only Notes that bear the Private Placement Legend
unless (i) the circumstance contemplated by paragraph (a)(i)(x) of this Section 2.15 exist or (ii)
there is delivered to the Registrar an Opinion of Counsel reasonably satisfactory to the Company
and the Trustee to the effect that neither such legend nor the related restrictions on transfer are
required in order to maintain compliance with the provisions of the Securities Act.

          (d) General. By its acceptance of any Note bearing the Private Placement Legend, each
Holder of such a Note acknowledges the restrictions on transfer of such Note set forth in this
Indenture and in the Private Placement Legend and agrees that it will transfer such Note only as
provided in this Indenture.

          The Registrar shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.14 or this Section 2.15. The Company shall have

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the right to inspect and make copies of all such letters, notices or other written
communications at any reasonable time upon the giving of reasonable written notice to the
Registrar.

          SECTION 2.16. Tax Treatment.

          The Company agrees and, by acceptance of beneficial ownership interest in the Notes, each
beneficial owner of Notes shall be deemed to have agreed (1) to treat the beneficial owners as
owners of the Notes for all purposes, including the preparation and filing of any United States
federal, state, local or foreign tax return, report or other information; (2) to treat the Notes as
the Company’s indebtedness for all purposes; (3) to treat the acquisition of an IDS as the
acquisition of the Note and the share of Class A Common Stock that are represented by the IDS; and
(4) to report OID with respect to the Notes and any OID Exchange Units for United States federal
income tax purposes consistently with the approach taken by the Company. Furthermore, by
acceptance of beneficial ownership in the Initial Notes, each beneficial owner of Initial Notes
agrees to allocate the purchase price of each IDS between the Note and the share of Class A Common
Stock underlying such IDS for all purposes, including the preparation and filing of any United
States federal, state, local or foreign tax return, report or other information, in accordance with
the Company’s allocation, which, in the case of IDSs representing the Initial Notes and shares of
Class A Common Stock, is $6.14 for each Initial Note and $7.50 for each share of Class A Common
Stock underlying an IDS.

          SECTION 2.17. Formation of IDSs.

          IDSs shall be issued initially in the form of one or more permanent Global IDSs in registered
form, substantially in the form set forth in Exhibit F hereto (the “Global IDSs”),
deposited with the transfer agent for the IDSs (the “IDS Transfer Agent”), as custodian for
the Depository, duly executed by the Company and authenticated by the IDS Transfer Agent. So long
as not prohibited by the terms of the Global IDS, each beneficial Holder of any Initial Note or
Non-OID Additional Note (or following an OID Exchange, any OID Exchange Unit) may combine or
recombine such Notes or OID Exchange Units, as the case may be, with shares of Class A Common Stock
to form IDSs by providing the IDS Transfer Agent a notice substantially in the form of Exhibit
G hereto.

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ARTICLE THREE

REDEMPTION

          SECTION 3.01. Notices to Trustee.

          If the Company elects or is required to redeem Notes pursuant to Paragraph 5 of the Notes, it
shall notify the Trustee and the Paying Agent in writing of the Redemption Date and the principal
amount of the Notes to be redeemed.

          The Company shall give each notice provided for in this Section 3.01 at least 60 days before
the Redemption Date (unless a shorter notice period shall be satisfactory to the Trustee, as
evidenced in a writing signed on behalf of the Trustee), together with an Officers’ Certificate and
Opinion of Counsel stating that such redemption shall comply with the conditions contained herein
and in the Notes.

          SECTION 3.02. Selection of Notes To Be Redeemed.

          If fewer than all of the Notes are to be redeemed, the Trustee shall select the Notes to be
redeemed on a pro rata basis, by lot or by such other method as the Trustee shall deem fair and
appropriate, unless the requirements of DTC or of the principal national securities exchange or
automated securities quotation system, if any, on which such Notes are listed or quoted prohibit
such method, in which case the selection of the Notes shall be made in accordance with the
requirements of DTC or such exchange or system.

          The Trustee shall, in each case, make the selection from the Notes outstanding and not
previously called for redemption and shall promptly notify the Company in writing of the Notes
selected for redemption and, in the case of any Note selected for partial redemption, the principal
amount thereof, to be redeemed. Provisions of this Indenture that apply to Notes called for
redemption also apply to portions of Notes called for redemption.

          SECTION 3.03. Notice of Redemption.

          At least 30 days but not more than 60 days before a Redemption Date, the Company shall mail or
cause to be mailed a notice of redemption by first class mail, postage prepaid, to each Holder
whose Notes are to be redeemed at its registered address, with a copy to the Trustee and any Paying
Agent. At the Company’s written request, the Trustee shall give the notice of redemption in the
Company’s name and at the Company’s expense.

          Each notice of redemption shall identify the Notes to be redeemed (including the CUSIP numbers
relating to such Notes or the related OID Exchange Units, if applicable) and shall state:

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     (1) the Redemption Date;

     (2) the Redemption Price and the amount of accrued interest, if any, to be paid;

     (3) the name and address of the Paying Agent;

     (4) the subparagraph of the Notes pursuant to which such redemption is being made;

     (5) that Notes called for redemption must be surrendered to the Paying Agent to collect
the Redemption Price plus accrued interest, if any;

     (6) that, unless the Company fails to deposit with the Paying Agent funds in
satisfaction of the applicable redemption price, interest on Notes called for redemption
ceases to accrue on and after the Redemption Date, and the only remaining right of the
Holders of such Notes is to receive payment of the Redemption Price plus accrued interest,
if any, upon surrender to the Paying Agent of the Notes redeemed;

     (7) if any Note is being redeemed in part, the portion of the principal amount of such
Note to be redeemed and that, after the Redemption Date, and upon surrender of such Note, a
new Note or Notes in the aggregate principal amount equal to the unredeemed portion thereof
will be issued; and

     (8) if fewer than all the Notes ate to be redeemed, the identification of the
particular Notes (or portion thereof) to be redeemed, as well as the aggregate principal
amount of Notes to be redeemed and the aggregate principal amount of Notes to be outstanding
after such partial redemption.

          SECTION 3.04. Effect of Notice of Redemption.

          Once notice of redemption is mailed in accordance with Section 3.03, Notes called for
redemption become due and payable on the Redemption Date and at the Redemption Price plus accrued
interest, if any. Upon surrender to the Trustee or Paying Agent, such Notes called for redemption
shall be paid at the Redemption Price (which shall include accrued interest thereon to the
Redemption Date), but installments of interest, the maturity of which is on or prior to the
Redemption Date, shall be payable to Holders of record at the close of business on the relevant
record dates referred to in the Notes.

          SECTION 3.05. Deposit of Redemption Price.

          On or before the Redemption Date, the Company shall deposit with the Paying Agent U.S. Legal
Tender sufficient to pay the Redemption Price plus accrued interest, if any,

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of all Notes to be redeemed on that date. The Paying Agent shall promptly return to the
Company any U.S. Legal Tender so deposited which is not required for that purpose, except with
respect to monies owed as obligations to the Trustee pursuant to Article Seven.

          If the Company complies with the preceding paragraph, then, unless the Company defaults in the
payment of such Redemption Price plus accrued interest, if any, interest on the Notes to be
redeemed will cease to accrue on and after the applicable Redemption Date, whether or not such
Notes are presented for payment.

          SECTION 3.06. Notes Redeemed in Part.

          Upon surrender of a Note that is to be redeemed in part, the Trustee shall authenticate for
the Holder a new Note or Notes equal in principal amount to the unredeemed portion of the Note
surrendered.

ARTICLE FOUR

COVENANTS

          SECTION 4.01. Payment of Notes.

          The Company shall pay the principal of and interest on the Notes on the dates and in the
manner provided in the Notes and in this Indenture. An installment of principal of or interest on
the Notes shall be considered paid on the date it is due if the Trustee or Paying Agent (other than
the Company or an Affiliate of the Company) holds on that date U.S. Legal Tender designated for and
sufficient to pay the installment in full and is not prohibited from paying such money to the
Holders pursuant to the terms of this Indenture.

          Notwithstanding anything to the contrary contained in this Indenture, the Company may, to the
extent it is required to do so by law, deduct or withhold income or other similar taxes imposed by
the United States of America from principal or interest payments hereunder.

          SECTION 4.02. Maintenance of Office or Agency.

          The Company shall maintain the office or agency required under Section 2.03. The Company
shall give prior written notice to the Trustee of the location, and any change in the location, of
such office or agency. If at any time the Company shall fail to maintain any such required office
or agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the address of the Trustee set forth in
Section 12.02.

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          SECTION 4.03. Corporate Existence.

          Except as otherwise permitted by Article Five, the Company shall do or cause to be done, at
its own cost and expense, all things necessary to preserve and keep in full force and effect its
corporate existence and the corporate existence of each of its Subsidiaries in accordance with the
respective organizational documents of each such Subsidiary and the material rights (charter and
statutory) and franchises of the Company and each such Subsidiary; provided,
however, that the Company shall not be required to preserve, with respect to itself, any
material right or franchise and, with respect to any of its Subsidiaries, any such existence,
material right or franchise, if the Board of Directors of the Company shall determine in good faith
that the preservation thereof is no longer desirable in the conduct of the business of the Company
and its Subsidiaries, taken as a whole.

          SECTION 4.04. Payment of Taxes and Other Claims.

          The Company shall pay or discharge or cause to be paid or discharged, before the same shall be
come delinquent, (i) all material taxes, assessments and governmental charges (including
withholding taxes and any penalties, interest and additions to taxes) levied or imposed upon it or
any of its Subsidiaries or its properties or any of its Subsidiaries’ properties and (ii) all
material lawful claims for labor, materials and supplies that, if unpaid, might by law become a
Lien upon its properties or any of its Subsidiaries’ properties; provided, however,
that the Company shall not be required to pay or discharge or cause to be paid or discharged any
such tax, assessment, charge or claim whose amount, applicability or validity is being or shall be
contested in good faith by appropriate proceedings properly instituted and diligently conducted for
which adequate reserves, to the extent required under GAAP, have been taken.

          SECTION 4.05. Maintenance of Properties and Insurance.

          (a) The Company shall, and shall cause each of its Subsidiaries to, maintain its properties in
good working order and condition in all material respects (subject to ordinary wear and tear) and
make all necessary repairs, renewals, replacements, additions, betterments and improvements thereto
and actively conduct and carry on its business; provided, however, that nothing in
this Section 4.05 shall prevent the Company or any of its Subsidiaries from discontinuing the
operation and maintenance of any of its properties if such discontinuance is, in the good faith
judgment of the Board of Directors or other governing body of the Company or the Subsidiary
concerned, as the case may be, desirable in the conduct of its businesses and is not
disadvantageous in any material respect to the Holders.

          (b) The Company shall maintain insurance (including appropriate self-insurance) against loss
or damage of the kinds that, in the good faith judgment of the Company, are adequate and
appropriate for the conduct of the business of the Company and its Subsidiaries in a prudent
manner, with reputable insurers or with the government of the

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United States of America or an agency or instrumentality thereof, in such amounts, with such
deductibles, and by such methods as shall be customary, in the good faith judgment of the Company,
for companies similarly situated in the industry.

          SECTION 4.06. Compliance Certificate; Notice of Default.

          (a) The Company shall deliver to the Trustee, within 90 days after the end of the Company’s
fiscal year, an Officers’ Certificate stating that a review of its activities during the preceding
fiscal year has been made under the supervision of the signing Officers with a view to determining
whether it has kept, observed, performed and fulfilled its obligations under this Indenture and
further stating, as to each such Officer signing such certificate, that to the best of such
Officer’s actual knowledge the Company during such preceding fiscal year has kept, observed,
performed and fulfilled each and every such covenant and no Default or Event of Default occurred
during such year and at the date of such certificate there is no Default or Event of Default that
has occurred and is continuing or, if such signers do know of such Default or Event of Default, the
certificate shall describe the Default or Event of Default and its status with particularity. The
Officers’ Certificate shall also notify the Trustee should the Company elect to change the manner
in which it fixes its fiscal year end.

          (b) The annual financial statements delivered pursuant to Section 4.08 shall be accompanied by
a written report of the Company’s independent accountants (who shall be a firm of established
national reputation) that in conducting their audit of such financial statements nothing has come
to their attention that would lead them to believe that the Company has violated any provisions of
Section 4.01, 4.04, 4.10, 4.11, 4.12 or 4.20 or Article Five insofar as they relate to accounting
matters or, if any such violation has occurred, specifying the nature and period of existence
thereof, it being understood that such accountants shall not be liable directly or indirectly to
any Person for any failure to obtain knowledge of any such violation.

          (c) (i) If any Default or Event of Default has occurred and is continuing or (ii) if any
Holder seeks to exercise any remedy hereunder with respect to a claimed Default under this
Indenture or the Notes, the Company shall deliver to the Trustee, at its address set forth in
Section 12.02, by registered or certified mail or by telegram or facsimile transmission followed by
hard copy by registered or certified mail an Officers’ Certificate specifying such event, notice or
other action within five Business Days of its becoming aware of such occurrence.

          SECTION 4.07. Compliance with Laws.

          The Company shall, and shall cause each of its Subsidiaries to, comply with all applicable
statutes, rules, regulations, orders and restrictions of the United States of America, all states
and municipalities thereof, and of any governmental department, commission, board, regulatory
authority, bureau, agency and instrumentality of the foregoing, in respect of the

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conduct of its businesses and the ownership of its properties, except for such noncompliances
as are not in the aggregate reasonably likely to have a material adverse effect on the financial
condition or results of operations of the Company and its Subsidiaries, taken as a whole.

          SECTION 4.08. Reports to Holders.

          Whether or not required by the rules and regulations of the SEC, so long as any Notes are
outstanding, the Company shall furnish the Holders of Notes:

     (a) all quarterly and annual financial information that would be required to be
contained in a filing with the SEC on Forms 10-Q and 10-K if the Company were required to
file such Forms, including a “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” that describes the financial condition and results of operations
of the Company and its consolidated Subsidiaries (showing in reasonable detail, either on
the face of the financial statements or in the footnotes thereto and in Management’s
Discussion and Analysis of Financial Condition and Results of Operations, the financial
condition and results of operations of the Company and its Restricted Subsidiaries separate
from the financial condition and results of operations of the Unrestricted Subsidiaries of
the Company, if any) and, with respect to the annual information only, a report thereon by
the Company’s certified independent accountants; and

     (b) all current reports that would be required to be filed with the SEC on Form 8-K if
the Company were required to file such reports,

in each case within the time periods specified in the SEC’s rules and regulations.

          SECTION 4.09. Waiver of Stay, Extension or Usury Laws.

          The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay
or extension law or any usury law or other law that would prohibit or forgive the Company from
paying all or any portion of the principal of or interest on the Notes as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the
performance of this Indenture; and (to the extent that it may lawfully do so) the Company hereby
expressly waives all benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been enacted.

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          SECTION 4.10. Limitation on Restricted Payments.

          The Company shall not, and shall not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly,

     (a) declare or pay any dividend or make any distribution (other than dividends or
distributions payable in Qualified Capital Stock of the Company) on or in respect of shares
of Capital Stock of the Company to holders of such Capital Stock,

     (b) purchase, redeem or otherwise acquire or retire for value any Capital Stock of the
Company or any warrants, rights or options to purchase or acquire shares of any class of
such Capital Stock,

     (c) make any principal payment on, purchase, defease, redeem, prepay, decrease or
otherwise acquire or retire for value, prior to any scheduled final maturity, scheduled
repayment or scheduled sinking fund payment, any Indebtedness of the Company that is
subordinate or junior in right of payment to the Notes, any Subsidiary Guarantee, the
Intercompany Note or the Intercompany Note Guaranty, or

     (d) make any Investment (other than Permitted Investments)

(each of the foregoing actions set forth in clauses (a), (b), (c) and (d) being referred to as a
“Restricted Payment”), if at the time of such Restricted Payment or immediately after
giving effect thereto (with the value of any such Restricted Payment, if other than cash, to be
determined by the Board of Directors of the Company, whose determination shall be conclusive and
evidenced by a Board Resolution),

     (i) a Default or an Event of Default shall have occurred and be continuing;

     (ii) the Company is not able to incur at least $1.00 of additional Indebtedness (other
than Permitted Indebtedness) in compliance with Section 4.12 (or, in the case of a
Restricted Payment by Coinmach Corp. or any of its Restricted Subsidiaries, Coinmach Corp.
is not able to incur at least $1.00 of additional Indebtedness (other than Permitted
Indebtedness) in compliance with Section 4.12); or

     (iii) the aggregate amount of Restricted Payments (including such proposed Restricted
Payment) made subsequent to the Issue Date (the amount expended for such purposes, if other
than in cash, being the Fair Market Value of such property as determined in good faith by
the Board of Directors of the Company) shall exceed the sum of: (w) 50% of the cumulative
Consolidated Net Income (or if cumulative Consolidated Net Income shall be a loss, minus
100% of such loss) of the Company earned subsequent to December 31, 2004 and ending on the
last day of the Company’s last fiscal quarter ending prior to the date the Restricted
Payment occurs for which fi-

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nancial statements are available (the “Reference Date”) (treating such period
as a single accounting period); plus (x) 100% of the aggregate net cash proceeds
(excluding proceeds from the exercise of the Over-Allotment Option) received by the Company
from any Person (other than a Subsidiary of the Company) from the issuance and sale
subsequent to December 31, 2004 and on or prior to the Reference Date of Qualified Capital
Stock of the Company or warrants, options or other rights to acquire Qualified Capital Stock
of the Company or from the issuance of debt securities of the Company that have been
converted into or exchanged for Qualified Capital Stock subsequent to the Issue Date and on
or prior to the Reference Date; plus (y) without duplication of any amounts included
in clause (iii)(x) above, 100% of the aggregate net cash proceeds of any equity contribution
received by the Company from a holder of the Company’s Capital Stock subsequent to December
31, 2004 and on or prior to the Reference Date (excluding, in the case of clauses (iii)(x)
and (y), any net cash proceeds from issuances and sales of Qualified Capital Stock of the
Company financed directly or indirectly using funds borrowed from the Company or any
Subsidiary of the Company, until and to the extent such borrowing is repaid).

          Notwithstanding the foregoing, the provisions set forth in the immediately preceding paragraph
do not prohibit:

     (1) the payment of any dividend within 60 days after the date of declaration of such
dividend if the payment of such dividend would have been permitted on the date of
declaration;

     (2) if no Default or Event of Default shall have occurred and be continuing, the
acquisition of any shares of Capital Stock of the Company, either (i) solely in exchange for
 shares of Qualified Capital Stock of the Company or (ii) through the application of net
proceeds of a substantially concurrent sale for cash (other than to a Subsidiary of the
Company) of shares of Qualified Capital Stock of the Company;

     (3) if no Default or Event of Default shall have occurred and be continuing, the
acquisition of any Indebtedness of the Company or any Restricted Subsidiary that is
subordinate or junior in right of payment to the Notes, any Subsidiary Guarantee, the
Intercompany Note or the Intercompany Note Guaranty either (i) solely in exchange for shares
of Qualified Capital Stock of the Company, or (ii) through the application of net proceeds
of a substantially concurrent sale for cash (other than to a Subsidiary of the Company) of
(A) shares of Qualified Capital Stock of the Company or (B) Refinancing Indebtedness;

     (4) if no Default or Event of Default shall have occurred and be continuing, an
Investment through the application of the net proceeds of a substantially concurrent sale
for cash (other than to a Subsidiary of the Company) of shares of Qualified Capital Stock of
the Company;

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     (5) if no Default or Event of Default shall have occurred and be continuing, Restricted
Payments in an aggregate amount not to exceed $30,000,000;

     (6) if no Default or Event of Default shall have occurred and be continuing, the
repurchase of Capital Stock from members of management or Parent not to exceed $2,000,000 in
any fiscal year; provided that any amounts not used in such fiscal year may be carried
forward one year (but not beyond one year with any carried over amounts being deemed to be
used first in any fiscal year);

     (7) if no Default or Event of Default shall have occurred and be continuing, the
declaration and payment of dividends on shares of outstanding Common Stock of the Company up
to an aggregate amount in any fiscal quarter not to exceed the Quarterly Base Dividend Level
determined for the prior fiscal quarter so long as, as of any date of determination, the
Interest Coverage Test is met;

     (8) if no Default or Event of Default shall have occurred and be continuing, the
declaration and payment of dividends on shares of outstanding Common Stock of the Company up
to an aggregate amount in any fiscal quarter not to exceed the Carry-Over Dividend Basket
determined for the prior fiscal quarter to the extent not applied to reduce Capital
Expenditures for such fiscal quarter for purposes of clause (b) of the definition of
“Distributable Cash Flow,” so long as, as of any date of determination, the Interest
Coverage Test is met;

     (9) any Restricted Payments in respect of Redemption Rights or Sales Rights permitted
to be exercised pursuant to the terms of this Indenture;

     (10) distributions to Parent or payments on behalf of Parent for or in respect of (a)
tax preparation, accounting, legal and administrative fees and expenses, including travel
and similar reasonable expenses, incurred on behalf of the Company or its Restricted
Subsidiaries or in connection with Parent’s ownership of the Company or its Restricted
Subsidiaries, and (b) reasonable and customary directors’ fees to, and indemnity provided on
behalf of, the directors of Parent, and reimbursement of customary and reasonable travel and
similar expenses incurred in the ordinary course of business in an aggregate amount not to
exceed $2,000,000 in any fiscal year;

     (11) payments to holders of the Capital Stock of the Company in lieu of the issuance of
fractional shares of the Capital Stock of the Company;

     (12) if no Default or Event of Default shall have occurred and be continuing or would
be caused thereby immediately following the making thereof, the First Four Dividend
Payments; and

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     (13) any Restricted Payment made in connection with the Transactions as described in
the Prospectus.

In determining the aggregate amount of Restricted Payments made subsequent to the Issue Date in
accordance with clause (iii) of the immediately preceding paragraph, amounts expended pursuant to
clauses (1), (2)(ii), (3)(ii)(a), (5), (6), (7), (8) and (12) shall be included (without
duplication) in such calculation.

          Not later than the date of making any Restricted Payment pursuant to the provisions of the
first paragraph of this Section 4.10 and no less frequently than quarterly in the case of all other
Restricted Payments, the Company shall deliver to the Trustee an Officers’ Certificate stating that
such Restricted Payment complies with this Indenture and setting forth in reasonable detail the
basis upon which the required calculations were computed, which calculations may be based upon the
Company’s latest available internal quarterly financial statements.

          SECTION 4.11. Limitation on Transactions with Affiliates.

          (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, enter into or permit to exist any transaction or series of related
transactions (including, without limitation, the purchase, sale, lease or exchange of any property
or the rendering of any service) with, or for the benefit of, any of its Affiliates (each, an
“Affiliate Transaction”), other than (x) Affiliate Transactions permitted under paragraph
(b) below and (y) Affiliate Transactions on terms that are no less favorable than those that might
reasonably have been obtained in a comparable transaction at such time on an arm’s-length basis
from a Person that is not an Affiliate of the Company or such Restricted Subsidiary.

          (b) All Affiliate Transactions (and each series of related Affiliate Transactions which are
similar or part of a common plan) involving aggregate payments or other property with a Fair Market
Value in excess of $5,000,000 shall be approved by a majority of the disinterested members of the
Board of Directors of the Company or such Restricted Subsidiary, as the case may be, such approval
to be evidenced by a Board Resolution stating that such Board of Directors has determined that such
transaction complies with the foregoing provisions. If the Company or any Restricted Subsidiary of
the Company enters into an Affiliate Transaction (or a series of related Affiliate Transactions
related to a common plan) that involves an aggregate Fair Market Value of more than $10,000,000,
the Company or such Restricted Subsidiary, as the case may be, shall, prior to the consummation
thereof, obtain a favorable opinion as to the fairness of such transaction or series of related
transactions to the Company or the relevant Restricted Subsidiary, as the case may be, from a
financial point of view, from an Independent Financial Advisor and file the same with the Trustee.

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          (c) The restrictions set forth in paragraph (a) shall not apply to:

     (i) reasonable fees and compensation paid to, and indemnity provided on behalf of,
officers, directors, employees or consultants of the Company or any Restricted Subsidiary of
the Company as determined in good faith by the Company’s Board of Directors or senior
management;

     (ii) transactions exclusively between or among the Company and any of its Wholly Owned
Restricted Subsidiaries or exclusively between or among such Wholly Owned Restricted
Subsidiaries, in each case so long as such transactions are not otherwise prohibited by this
Indenture;

     (iii) any agreement as in effect as of the Issue Date or any amendment thereto or any
replacement thereto, or any transaction contemplated thereby (including pursuant to any
amendment thereto) so long as any such amendment or replacement agreement is not more
disadvantageous to the Holders in any material respect than the original agreement as in
effect on the Issue Date;

     (iv) Permitted Investments and Restricted Payments permitted by Section 4.10;

     (v) the exercise of Redemption Rights, Sales Rights and transactions pursuant to other
agreements entered into on the Issue Date in connection with the Transactions; and

     (vi) employment, stock option, stock repurchase, employee benefit compensation,
business expense reimbursement, severance, termination or other employment-related
agreements, arrangements or plans, including, but not limited to, issuance or grants under
the 2004 LTIP of the Company or any Restricted Subsidiary of the Company entered into in the
ordinary course of business.

          SECTION 4.12. Limitation on Incurrence of Additional Indebtedness.

          (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, assume, Guarantee, acquire, become liable, contingently or
otherwise, with respect to, or otherwise become responsible for payment of (collectively,
“incur”) any Indebtedness (other than Permitted Indebtedness); provided,
however, that if no Default or Event of Default shall have occurred and be continuing at
the time of or as a consequence of the incurrence of any such Indebtedness,

     (i) the Company or any Subsidiary Guarantor, concurrent with or subsequent to the
effectiveness of its Subsidiary Guarantee, may incur Indebtedness (including, without
limitation, Acquired Indebtedness) if on the date of the incurrence of such In-

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debtedness, after giving effect to the incurrence thereof, the Consolidated Fixed
Charge Coverage Ratio of the Company is greater than 2.0 to 1.0 and

     (ii) at any time prior to the occurrence of the Merger Event, Coinmach Corp. and any of
its Restricted Subsidiaries may incur Indebtedness (including, without limitation, Acquired
Indebtedness) if on the date of the incurrence of such Indebtedness, after giving effect to
the incurrence thereof, the Consolidated Fixed Charge Coverage Ratio of Coinmach Corp. is
greater than 2.0 to 1.0.

          (b) The Company will not, and will not permit any Subsidiary Guarantor or any Subsidiary that
is an obligor or guarantor of the Intercompany Note (any “Intercompany Note Obligor”) to,
directly or indirectly, incur any Indebtedness which is or purports to be by its terms (or by the
terms of any agreement governing such Indebtedness) subordinated in right of payment to any other
Indebtedness of the Company or any Subsidiary Guarantor or Intercompany Note Obligor, as the case
may be, unless such Indebtedness is also by its terms (or by the terms of any agreement governing
such Indebtedness) made expressly subordinate in right of payment to the Notes, any Subsidiary
Guarantee, the Intercompany Note and the Intercompany Note Guaranty, as the case may be, in each
case to the same extent and in the same manner as such Indebtedness is subordinated in right of
payment to such other Indebtedness.

          (c) For purposes of determining compliance with, and the outstanding principal amount of, any
particular Indebtedness incurred pursuant to and in compliance with this Section 4.12, the amount
of Indebtedness issued at a price that is less than the principal amount thereof will be equal to
the amount of the liability in respect thereof determined in accordance with GAAP. The accrual of
interest, the accretion or amortization of original issue discount, the payment of interest on any
Indebtedness in the form of additional Indebtedness with the same terms and the payment of
dividends on Disqualified Stock or preferred stock in the form of additional shares of the same
class of Disqualified Stock or preferred stock will not be deemed to be an incurrence of
Indebtedness for purposes of this Section 4.12.

          (d) The Company will not issue indebtedness represented by Additional IDS Notes after the
Issue Date (whether pursuant to clause (xiv) of the definition of “Permitted Indebtedness” or
otherwise) unless at the same time and in connection therewith it receives an opinion of
independent counsel nationally recognized in U.S. federal income tax matters to the effect that,
based on customary assumptions and factual representations, such Additional IDS Notes and any
Additional Notes issued in connection therewith will be treated as indebtedness for U.S. federal
income tax purposes (although such opinion may be qualified in the same manner as the equivalent
opinion received by the Company with respect to the Notes underlying the IDSs and the Notes not
underlying IDSs issued on the Issue Date).

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          (e) The Company will not issue Indebtedness represented by Additional IDS Notes after the
Issue Date (other than pursuant to the Over-Allotment Option) unless at the same time and in
connection therewith (i) it issues Additional Notes not underlying IDSs having an aggregate
principal amount of not less than 11.1% of the aggregate principal amount of the Notes underlying
such IDSs and (ii) the purchasers of such Additional Notes are required to make the same
representations to the Company required of purchasers of Notes not underlying IDSs purchased on the
Issue Date. The foregoing sentence shall not apply to issuances by the Company of IDSs from time
to time after the Issue Date having an aggregate issue price not to exceed $200,000,000 and, to the
extent issued as incentive compensation to directors or officers of the Company or any of its
Subsidiaries, additional IDSs having an aggregate issue price not to exceed $5,000,000.

          SECTION 4.13. Limitation on Dividend and Other Payment Restrictions Affecting Restricted
Subsidiaries.

          The Company shall not, and shall not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly, create or otherwise cause or permit to exist or become effective any
encumbrance or restriction on the ability of any Restricted Subsidiary of the Company to:

     (a) pay dividends or make any other distributions on or in respect of its Capital
Stock, or with respect to any other interest or participation in, or measured by, its
profits, to the Company or any of its Restricted Securities or pay any Indebtedness owed to
the Company or any of its Restricted Subsidiaries;

     (b) make loans or advances or pay any Indebtedness or other obligation owed to the
Company or any other Restricted Subsidiary of the Company; or

     (c) transfer any of its property or assets to the Company or any other Restricted
Subsidiary of the Company,

except for such encumbrances or restrictions existing under or by reason of:

     (1) applicable law;

     (2) this Indenture, the Notes, any Additional Notes and the Collateral Agreements;

     (3) customary non-assignment provisions of any contract or any lease governing a
leasehold interest of any Restricted Subsidiary of the Company;

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     (4) any instrument governing Acquired Indebtedness, which encumbrance or restriction is
not applicable to any Person, or the properties or assets of any Person, other than the
Person or the properties or assets of the Person so acquired;

     (5) agreements existing on the Issue Date to the extent and in the manner such
agreements are in effect on the Issue Date, including the Credit Agreement, the
Intercreditor Agreement and the indenture governing the 9% Coinmach Corp. Notes;

     (6) an agreement (i) governing Indebtedness incurred to Refinance the Indebtedness
issued, assumed or incurred pursuant to an agreement referred to in clause (2), (4) or (5)
above and (ii) governing any other Indebtedness of the Company or any Restricted Subsidiary
permitted to be incurred under this Indenture; provided, however, that the provisions
relating to such encumbrance or restriction contained in any such Indebtedness are no less
favorable to the Company in any material respect as determined by the Board of Directors of
the Company in their reasonable and good faith judgment than the provisions relating to such
encumbrance or restriction contained in agreements referred to in such clause (2), (4) or
(5);

     (7) any restriction with respect to a Restricted Subsidiary imposed pursuant to an
agreement entered into for the sale or disposition of all or substantially all the Capital
Stock or assets of such Restricted Subsidiary pending the closing of such sale or
disposition;

     (8) restrictions on cash or other deposits or net worth imposed by customers under
contracts entered into in the ordinary course of business;

     (9) customary provisions in joint venture agreements and other similar agreements
entered into in the ordinary course of business; or

     (10) customary restrictions on the transfer of assets subject to a Permitted Lien
imposed by the holder of such Liens.

          SECTION 4.14. Limitation on Issuances of Certain Guarantees by, and Debt Securities of,
Restricted Subsidiaries.

          (a) The Company will not permit any of its Restricted Subsidiaries to directly or indirectly
Guarantee any Indebtedness of the Company unless such Restricted Subsidiary simultaneously executes
and delivers a Subsidiary Guarantee. At any time prior to the occurrence of the Merger Event, the
Company will not permit any Subsidiary of Coinmach Corp. to directly or indirectly Guarantee any
Indebtedness of Coinmach Corp. unless such Subsidiary simultaneously executes and delivers a
joinder to the Intercompany Note Guaranty.

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          (b) Notwithstanding the provisions of clause (a) of this Section 4.14, Coinmach Corp. and each
other Significant Subsidiary of the Company that is a Domestic Restricted Subsidiary shall, on the
first day it is not prohibited from guaranteeing all Obligations outstanding under the Notes under
the terms of its Indebtedness outstanding from time to time, execute and deliver a Subsidiary
Guarantee. Any such Subsidiary Guarantee shall not be subordinated in right of payment to any
Indebtedness of the Subsidiary providing the Subsidiary Guarantee. A Subsidiary (other than
Coinmach Corp.) shall be deemed released from all of its obligations under its Subsidiary Guarantee
at any such time that such Subsidiary is released from all of its obligations under all of its
Guarantees in respect of other Indebtedness of the Company, as applicable.

          SECTION 4.15. Limitation on Change of Control.

          (a) Upon the occurrence of a Change of Control, the Company shall make an offer to purchase
all outstanding Notes pursuant to the offer described in paragraph (b) below (a “Change of
Control Offer”) at a purchase price equal to 101% of the principal amount thereof plus accrued
interest, if any, to the date of purchase.

          (b) Within 30 days following the date upon which the Change of Control occurred (the
“Change of Control Date”), if the Company has not, prior to the Change of Control, sent a
redemption notice for all of the Notes in accordance with Paragraph 5 of the Notes and Section
3.01, the Company shall send, by first class mail, a notice to each Holder, with a copy to the
Trustee, which notice shall govern the terms of the Change of Control Offer. The notice to the
Holders shall contain all instructions and materials necessary to enable such Holders to tender
Notes pursuant to the Change of Control Offer. Such notice shall state:

     (1) that the Change of Control Offer is being made pursuant to this Section 4.15 and
that all Notes tendered and not withdrawn will be accepted for payment;

     (2) the purchase price (including the amount of accrued interest) and the purchase date
(which shall be no earlier than 61 days nor later than 90 days from the date such notice is
mailed, other than as may be required by law) (the “Change of Control Payment
Date”);

     (3) that any Note not tendered will continue to accrue interest;

     (4) that, unless the Company defaults in making payment therefor, any Note accepted for
payment pursuant to the Change of Control Offer shall cease to accrue interest after the
Change of Control Payment Date;

     (5) that Holders electing to have a Note purchased pursuant to a Change of Control
Offer will be required to surrender the Note, with the form entitled “Option of Holder to
Elect Purchase” on the reverse of the Note completed, to the Paying Agent

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at the address specified in the notice prior to the close of business on the third
Business Day prior to the Change of Control Payment Date;

     (6) that Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than five Business Days prior to the Change of Control Payment Date, a
telegram, facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Notes the Holder delivered for purchase and a statement that such
Holder is withdrawing its election to have such Notes purchased;

     (7) that Holders whose Notes are purchased only in part will be issued new Notes in a
principal amount equal to the unpurchased portion of the Notes surrendered;

     (8) that Holders of IDSs electing to have a Note purchased pursuant to a Change of
Control Offer will be required to separate its IDSs into shares of the Company’s Class A
Common Stock and Notes; and

     (9) the circumstances and relevant facts regarding such Change of Control.

          On or before the Change of Control Payment Date, the Company shall (i) accept for payment
Notes or portions thereof tendered pursuant to the Change of Control Offer, (ii) deposit with the
Paying Agent U.S. Legal Tender sufficient to pay the purchase price plus accrued interest, if any,
of all Notes so tendered and (iii) deliver to the Trustee Notes so accepted together with an
Officers’ Certificate stating the Notes or portions thereof being purchased by the Company. The
Paying Agent shall promptly mail to the Holders of Notes so accepted payment in an amount equal to
the purchase price plus accrued interest, if any, and the Trustee shall promptly authenticate and
mail to such Holders new Notes equal in principal amount to any unpurchased portion of the Notes
surrendered. Any Notes not so accepted shall be promptly mailed by the Company to the Holders
thereof. For purposes of this Section 4.15, the Trustee shall act as the Paying Agent.

          (c) Any amounts remaining after the purchase of Notes pursuant to a Change of Control Offer
shall be returned by the Trustee to the Company.

          (d) The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent such laws and regulations are
applicable in connection with the repurchase of Notes pursuant to a Change of Control Offer. To
the extent the provisions of any securities laws or regulations conflict with the provisions under
this Section 4.15, the Company shall comply with the applicable securities laws and regulations and
shall not be deemed to have breached its obligations under this Section 4.15 by virtue thereof.

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          (e) The Company shall not be required to make a Change of Control Offer upon a Change of
Control if a third party makes the Change of Control Offer in the manner, at the times and
otherwise in compliance with the requirements of this Section 4.15 and purchases all Notes validly
tendered and not withdrawn under such Change of Control Offer.

          SECTION 4.16. Limitation on Asset Sales.

          (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
consummate an Asset Sale unless:

     (i) the Company or the applicable Restricted Subsidiary, as the case may be, receives
consideration at the time of such Asset Sale at least equal to the Fair Market Value of the
assets sold or otherwise disposed of (as determined in good faith by the Company’s Board of
Directors);

     (ii) at least 75% of the consideration received by the Company or the Restricted
Subsidiary, as the case may be, from such Asset Sale shall be in the form of cash or Cash
Equivalents and is received at the time of such disposition; and

     (iii) upon the consummation of an Asset Sale, the Company shall apply, or cause such
Restricted Subsidiary to apply, the Net Cash Proceeds relating to such Asset Sale within 360
days of receipt thereof either

     (A) to make an investment in properties and assets that replace the properties
and assets that were the subject of such Asset Sale or in properties and assets that
will be used in the business of the Company and its Restricted Subsidiaries as
existing on the Issue Date or in businesses reasonably related thereto
(“Replacement Assets”),

     (B) to permanently reduce Indebtedness under the Credit Agreement;
provided that, to the extent the Asset Sale comprised assets of the Company,
the transfer of any Net Cash Proceeds from the Company to Coinmach Corp. in order to
reduce such Indebtedness is made in compliance with Section 4.20,

     (C) to the extent the Asset Sale comprised assets of a Restricted Subsidiary
that is not a Subsidiary Guarantor or an Intercompany Note Obligor, to permanently
reduce Indebtedness of any Restricted Subsidiary that is not a Subsidiary Guarantor
or an Intercompany Note Obligor, or

     (D) a combination of prepayment and investment permitted by the foregoing
clauses (iii)(A), (iii)(B) and (iii)(C);

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provided, however, that (1) the 75% limitation set forth in clause (ii) of this paragraph shall not
apply to any proposed Asset Sale for which an independent certified accounting firm shall certify
to the Board of Directors of the Company and the Trustee that the after-tax cash portion of the
consideration to be received by the company or such Restricted Subsidiary in such proposed Asset
Sale is equal to or greater than what the net after-tax cash proceeds would have been had such
proposed Asset Sale Complied with the 75% limitation set forth in clause (ii) of this paragraph;
(2) for purposes of this Section 4.16, Cash Equivalents shall include any Indebtedness under the
Credit Agreement of the Company or any Restricted Subsidiary (as shown on the Company’s or such
Restricted Subsidiary’s most recent balance sheet or in the notes thereto) that is assumed by the
transferee and for which the Company or such Restricted Subsidiary is reasonably indemnified in
connection with the relevant Asset Sale; and (3) any Asset Sale of the Intercompany Note or any
Intercompany Note Guarantee, or any interest therein, shall be made in compliance with the terms of
the Security Agreement or the Pledge Agreement, as applicable.

          On the 361st day after an Asset Sale or such earlier date, if any, as the Board of Directors
of the Company or of such Restricted Subsidiary determines not to apply the Net Cash Proceeds
relating to such Asset Sale as set forth in clauses (iii)(A), (iii)(B), (iii)(C) and (iii)(D) of
the preceding paragraph (each, a “Net Proceeds Offer Trigger Date”), such aggregate amount
of Net Cash Proceeds which have not been applied on or before such Net Proceeds Offer Trigger Date
as permitted in clauses (iii)(A), (iii)(B), (iii)(C) and (iii)(D) of the preceding paragraph (each,
a “Net Proceeds Offer Amount”) shall be applied by the Company or such Restricted
Subsidiary to make an offer to purchase (a “Net Proceeds Offer”) on a date (a “Net
Proceeds Offer Payment Date”) not less than 30 nor more than 60 days following the applicable
Net Proceeds Offer Trigger Date, from all Holders on a pro rata basis, that amount of Notes equal
to the Net Proceeds Offer Amount at a price equal to 100% of the principal amount of the Notes to
be purchased, plus accrued and unpaid interest thereon, if any, to the date of purchase;
provided, however, that, notwithstanding the foregoing, (i) in the case of an Asset
Sale comprising assets of a Restricted Subsidiary of the Company, the Company shall not be required
to make a Net Proceeds Offer to the extent such Restricted Subsidiary is not permitted pursuant to
its outstanding Indebtedness to make a Restricted Payment to the Company, and (ii) if at any time
any non-cash consideration received by the Company or any Restricted Subsidiary of the Company, as
the case may be, in connection with any Asset Sale is converted into or sold or otherwise disposed
of for cash (other than interest received with respect to any such non-cash consideration), then
such conversion or disposition shall be deemed to constitute an Asset Sale hereunder and the Net
Cash Proceeds thereof shall be applied in accordance with this Section 4.16. The Company may defer
the Net Proceeds Offer until there is an aggregate unutilized Net Proceeds Offer Amount equal to or
in excess of $5,000,000 resulting from one or more Asset Sales (at which time, the entire
unutilized Net Proceeds Offer Amount, and not just the amount in excess of $5,000,000, shall be
applied as required pursuant to this paragraph).

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          In the event of the transfer of substantially all (but not all) of the property and assets of
the Company and its Restricted Subsidiaries as an entirety to a Person in a transaction permitted
under Section 5.01, which transaction does not constitute a Change of Control, the successor
corporation shall be deemed to have sold the properties and assets of the Company and its
Restricted Subsidiaries not so transferred for purposes of this Section 4.16, and shall comply with
the provisions of this Section with respect to such deemed sale as if it were an Asset Sale. In
addition, the Fair Market Value of such properties and assets of the Company or its Restricted
Subsidiaries deemed to be sold shall be deemed to be Net Cash Proceeds for purposes of this Section
4.16.

          Notwithstanding the first two paragraphs of this Section 4.16(a), the Company and its
Restricted Subsidiaries will be permitted to consummate an Asset Sale without complying with such
paragraph to the extent that (i) at least 75% of the consideration for such Asset Sale constitutes
Replacement Assets and (ii) such Asset Sale is for Fair Market Value; provided that any
cash or Cash Equivalents received by the Company or any of its Restricted Subsidiaries in
connection with any Asset Sale permitted to be consummated under this paragraph shall constitute
Net Cash Proceeds subject to the provisions of the second paragraph of this Section 4.16(a).

          (b) Subject to the deferral of the Net Proceeds Offer Trigger Date contained in subsection (a)
above, each notice of a Net Proceeds Offer pursuant to this Section 4.16 shall be mailed, by first
class mail, by the Company not more than 25 days after the Net Proceeds Offer Trigger Date to all
Holders at their last registered addresses as of a date within 15 days of the mailing of such
notice, with a copy to the Trustee. The notice shall contain all instructions and materials
necessary to enable such Holders to tender Notes pursuant to the Net Proceeds Offer and shall state
the following terms:

     (1) that the Net Proceeds Offer is being made pursuant to this Section 4.16 and that
all Notes tendered, in whole or in part, will be accepted for payment; provided,
however, that if the aggregate principal amount of Notes tendered in a Net Proceeds
Offer plus accrued interest at the expiration of such offer exceeds the aggregate amount of
the Net Proceeds Offer, the Company shall select the Notes to be purchased on a pro rata
basis;

     (2) the purchase price (including the amount of accrued interest) and the purchase date
(which shall be 20 Business Days from the date of mailing of notice of such Net Proceeds
Offer, or such longer period as required by law) (the “Proceeds Purchase Date”);

     (3) that any Note not tendered will continue to accrue interest;

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     (4) that, unless the Company defaults in making payment therefor, any Note accepted for
payment pursuant to the Net Proceeds Offer shall cease to accrue interest after the Proceeds
Purchase Date;

     (5) that Holders electing to have a Note purchased pursuant to a Net Proceeds Offer
will be required to surrender the Note, with the form entitled “Option of Holder to Elect
Purchase” on the reverse of the Note completed, to the Paying Agent at the address specified
in the notice prior to the close of business on the third Business Day prior to the Proceeds
Purchase Date;

     (6) that Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than five Business Days prior to the Proceeds Purchase Date, a telegram,
facsimile transmission or letter setting forth the name of the Holder, the principal amount
of the Notes the Holder delivered for purchase and a statement that such Holder is
withdrawing its election to have such Note purchased; and

     (7) that Holders whose Notes are purchased only in part will be issued new Notes in a
principal amount equal to the unpurchased portion of the Notes surrendered;

     (8) that Holders of IDSs electing to have a Note purchased pursuant to a Net Proceeds
Offer will be required to separate its IDSs into shares of the Company’s Class A Common
Stock and Notes; and

     (9) the circumstances and relevant facts regarding such Change of Control.

          On or before the Proceeds Purchase Date, the Company shall (i) accept for payment Notes or
portions thereof tendered pursuant to the Net Proceeds Offer which are to be purchased in
accordance with item (b)(1) above, (ii) deposit with the Paying Agent U.S. Legal Tender sufficient
to pay the purchase price plus accrued interest, if any, of all Notes to be purchased and (iii)
deliver to the Trustee Notes so accepted together with an Officers’ Certificate stating the Notes
or portions thereof being purchased by the Company. The Paying Agent shall promptly mail to the
Holders of Notes so accepted payment in an amount equal to the purchase price plus accrued
interest, if any. For purposes of this Section 4.16, the Trustee shall act as the Paying Agent.

          Any amounts remaining after the purchase of Notes pursuant to a Net Proceeds Offer shall be
returned by the Trustee to the Company.

          The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws and regulations are
applicable in connection with the repurchase of Notes pursuant to a Net Proceeds Offer. To the
extent that the provisions of any securities laws or regulations conflict

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with this Section 4.16, the Company shall comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations under Section 4.16 by virtue
thereof.

          SECTION 4.17. Limitation on Preferred Stock of Restricted Subsidiaries.

          The Company shall not permit any of its Restricted Subsidiaries to issue any Preferred Stock
(other than to the Company or to a Wholly Owned Restricted Subsidiary of the Company) or permit any
Person (other than the Company or a Wholly Owned Restricted Subsidiary of the Company) to own any
Preferred Stock of any Restricted Subsidiary of the Company.

          SECTION 4.18. Limitation on Liens.

          The Company shall not, and shall not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, assume or permit or suffer to exist any Liens of any kind
(except for Permitted Liens) against or upon any property or assets of the Company or any of its
Restricted Subsidiaries whether owned on the Issue Date or acquired after the Issue Date, or any
proceeds therefrom, or assign or otherwise convey any right to receive income or profits therefrom.

          SECTION 4.19. Conduct of Business.

          The Company and its Restricted Subsidiaries will not engage in any businesses which are not
the same, similar or reasonably related to the businesses (including, without limitation, route
businesses) in which the Company and its Restricted Subsidiaries are engaged on the Issue Date.

          SECTION 4.20. Limitation on Equity Contributions to Restricted Subsidiaries; Obligations
To Transfer Certain Proceeds.

          (a) At any time prior to the occurrence of the Merger Event that the Total Remaining Payments
Tests are not met,

     (i) the Company shall not transfer any assets, directly or indirectly, to any
Subsidiary other than Coinmach Corp.,

     (ii) if and to the extent any direct or indirect transfer of assets is made to Coinmach
Corp., such transfer shall automatically be deemed to be Indebtedness incurred under the
Intercompany Note (and Indebtedness under the Intercompany Note shall be increased by the
Fair Market Value of any assets so transferred), and

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     (iii) the net proceeds received by the Company from any offer and sale of IDSs, Capital
Stock or Indebtedness of the Company shall:

     (1) in the case of any such net proceeds resulting from the issuance of IDSs or
Class A Common Stock, be used to redeem shares of Class B Common Stock that are
tendered to the Company in connection with the exercise of any Redemption Right
related thereto by the Company or the exercise of any Sales Right related thereto by
the holder thereof to the extent permitted by Section 4.21;

     (2) if and to the extent Coinmach Corp. is permitted to incur such Indebtedness
under the terms of its other Indebtedness outstanding from time to time, be lent as
promptly as practicable to Coinmach Corp. as Indebtedness under the Intercompany
Note; or

     (3) any combination thereof.

          (b) Any such Indebtedness incurred or deemed incurred under the Intercompany Note pursuant to
clause (a)(ii) or (a)(iii)(2) above shall have an aggregate principal amount equal to the amount of
cash so transferred (or, in the case of assets not constituting cash, the Fair Market Value of such
assets (which shall, to the extent involving assets with a Fair Market Value in excess of
$5,000,000, be determined by the Board of Directors of the Company in its reasonable and good faith
judgment, such determination to be evidenced by a Board Resolution)). If any such net proceeds
remain outstanding and Coinmach Corp. is not permitted to incur such additional Indebtedness under
the terms of its other Indebtedness, the Company may (x) retain such amounts until such time as
such amounts may be applied in accordance with such clause (a)(iii)(2) above, (y) pay any portion
of any interest then accrued and unpaid and principal on the Notes on the date such interest or
principal becomes due and payable, or (z) any combination thereof.

          (c) Notwithstanding anything to the contrary in this Section 4.20, the Company shall be
permitted to apply the proceeds of the offerings described in the Prospectus (including proceeds
received in connection with the exercise of the Over-Allotment Option) to consummate the
Transactions as described in the Prospectus.

          SECTION 4.21. Exercise of Redemption Rights and Sales Rights.

          The Company will not exercise any Redemption Rights or redeem any shares of Class B Common
Stock that are tendered to the Company in connection with the exercise of any Sales Rights related
thereto by the holder thereof prior to the date that is six months after the Issue Date.
Thereafter, the Company will not exercise any Redemption Right or redeem any shares of Class B
Common Stock that are tendered to the Company in connection with the exercise of any Sales Right
related thereto, in each case unless:

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     (1) no Default or Event of Default shall have occurred and be continuing or would occur
as a consequence thereof;

     (2) for the most recent fiscal quarter for which internal financial statements are
available after giving pro forma effect to such exercise and the application of proceeds, if
any, therefrom, the Company would have been permitted under clause (7) of the second
paragraph of Section 4.10 to pay a per share dividend with respect to all Class A Common
Stock in an amount not less than the average per share dividend declared by the Company’s
Board of Directors with respect to the Class A Common Stock for such fiscal quarter and the
fiscal quarter immediately preceding such fiscal quarter, as adjusted for any separation,
combination, reclassification or other like event with respect to the Class A Common Stock;

     (3) the Consolidated Fixed Charge Coverage Ratio of the Company at the time of the
exercise and after giving pro forma effect to such exercise and the application of proceeds,
if any, therefrom would have been greater than 2.125 to 1.0; and

     (4) if such exercise occurs prior to the Merger Event, at the time of the exercise and
immediately after giving effect thereto, either the Disproportionality Test or the Total
Remaining Payments Tests are met.

          SECTION 4.22. Impairment of Security Interest.

          So long as the Liens under the Collateral Agreements shall not have been released pursuant to
Section 11.06(a)(i), (ii) or (iii), subject to the Intercreditor Agreement, the Company shall not
take or omit to take (or permit to be taken or omit to be taken) any action that would adversely
affect or impair in any material respect the Liens in favor of the Collateral Agent with respect to
the Collateral. Neither the Company nor Laundry Corp. shall grant to any Person (other than the
Collateral Agent), or permit any Person (other than the Collateral Agent), to retain any interest
whatsoever in the Collateral other than holders of Permitted Liens. Neither the Company nor
Laundry Corp. will enter into any agreement that requires the proceeds received from any sale of
Collateral to be applied to repay, redeem, defease or otherwise acquire or retire any Indebtedness
of any Person (other than a holder of a Permitted Lien) other than as permitted by this Indenture,
the Notes, the Intercreditor Agreement and the Collateral Agreements. The Company shall, at its
sole cost and expense, execute and deliver, and cause to be executed and delivered, all such
agreements and instruments as the Collateral Agent or the Trustee shall reasonably request to more
fully or accurately describe the property intended to be Collateral or the obligations intended to
be secured by the Collateral Agreements. The Company shall, at its sole cost and expense, file,
and cause to be filed, any such notice filings or other agreements or instruments as may be
reasonably necessary or desirable under applicable law to perfect the Liens created by the
Collateral Agreements at such times and at such places as the Collateral Agent or the Trustee may
reasonably request.

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          SECTION 4.23. Limitation on Repurchases and Payments for Consents.

          The Company shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly,

     (1) purchase, redeem or otherwise acquire or retire for value any Notes not underlying
an IDS, or

     (2) pay or cause to be paid any consideration to or for the benefit of any Holder of
Notes not underlying an IDS (including Notes that have separated from the IDSs after the
Issue Date) for or as an inducement to any consent, waiver or amendment of any of the terms
or provisions of this Indenture, the Notes, the Intercompany Note, the Intercompany Note
Guaranty, any Collateral Agreement or the Intercreditor Agreement,

unless the purchase, redemption or acquisition is available to all Holders of Notes and the
applicable consideration is offered to be paid and is paid to all Holders of Notes that accept such
offer to purchase, redeem or otherwise acquire or retire for value or that consent, waive or agree
to amend, in each case in the time frame set forth in the applicable offer or solicitation
documents.

          SECTION 4.24. Limitation on Asset Transfers to Subsidiaries that Are Not Subsidiary
Guarantors or Intercompany Note Obligors.

          The Company will not, and will not cause or permit any Subsidiary Guarantor or Intercompany
Note Obligor to, directly or indirectly sell, convey, lease (other than operating leases entered
into in the ordinary course of business), assign or otherwise transfer any asset of any such Person
to any Subsidiary of the Company (other than any such Subsidiary that is a Domestic Restricted
Subsidiary and is, or concurrently with such sale, conveyance, lease, assignment or other transfer
will be, a Subsidiary Guarantor or Intercompany Note Obligor) following the Issue Date unless such
sale, conveyance, lease, assignment or other transfer is made in compliance with Section 4.11
(without giving effect to clauses (c)(ii) and (c)(iv) thereof).

          SECTION 4.25. Subsequent Issuance.

          (a) Upon the issuance by the Company of Additional Notes with OID in a Primary Registered
Offering, immediately following such issuance, a portion of each Holder’s Initial Notes, Additional
Notes issued in a Primary Registered Offering without OID (if any) (the “Non-OID Additional
Notes”) and/or such Additional Notes, as applicable, or beneficial interest therein, will
automatically, without any action by such Holder, be exchanged (each, an “OID Exchange”)
for a portion of each other Holder’s Initial Notes, Non-OID Additional Notes (if any) and/or such
Additional Notes, such that immediately after the OID Exchange,

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each Holder will hold Initial Notes, Non-OID Additional Notes (if any) and such Additional
Notes in the same proportion as the ratio of the then outstanding aggregate principal amount of the
Initial Notes (and Non-OID Additional Notes, if applicable) to the then outstanding aggregate
principal amount of such Additional Notes. The aggregate principal amount of Notes owned by each
Holder will not change as a result of the OID Exchange. Immediately following the OID Exchange,
the Company and the Trustee will instruct the Depositary to facilitate the combination of the
Initial Notes, Non-OID Additional Notes (if any) and/or such Additional Notes into inseparable
units (such units, and any units so created following any issuance described in paragraph (b)
below, the “OID Exchange Units”).

          (b) After the occurrence of an OID Exchange and upon any subsequent issuance by the Company of
Additional Notes in a Primary Registered Offering, immediately following such issuance a portion of
each Holder’s OID Exchange Units and/or such Additional Notes, as applicable, will be automatically
exchanged in accordance with the OID Exchange provisions in clause (a) above.

          (c) At least ten (10) Business Days prior to the closing of any transaction that is likely to
result in an OID Exchange, the Company shall notify the Trustee and the Depositary in writing of
its intention to consummate such transaction and shall instruct the Trustee and the Depositary to
take any action necessary to effect the OID Exchange. Such notice may be revoked at any time prior
to the date fixed for the OID Exchange by delivery of a notice in writing to the Trustee and the
Depositary.

          (d) The Company agrees, and by acceptance of beneficial ownership in the Notes each such
beneficial owner of Notes shall be deemed to have agreed, that (i) the Company will report any OID
associated with Notes represented by the OID Exchange Units among all Holders of OID Exchange Units
in proportion to their ownership of the aggregate principal amount of Notes represented by OID
Exchange Units, and (ii) each beneficial owner of OID Exchange Units shall report such OID in this
manner and shall not take an inconsistent position for any applicable tax purpose.

          (e) With respect to any Additional Notes exchanged in any OID Exchange, Holders may obtain the
amount of OID in respect of such Additional Notes, the date of issuance, the issue price and the
yield to maturity by submitting a written request to the Company.

          SECTION 4.26. Mortgages.

          So long as the Liens under the Collateral Agreements shall not have been released pursuant to
Section 11.06(i), (ii) or (iii) and the Merger Event shall not have occurred, if the Company or
Laundry Corp. acquires a fee interest in any Real Property (the “Premises”) after the Issue
Date, with a purchase price of greater than $5,000,000:

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     (a) the Company shall, or, if applicable, shall cause Laundry Corp. to, deliver to the
Collateral Agent, as mortgagee, fully-executed counterparts of a Mortgage, dated as of the
date of acquisition of such Real Property, duly executed by the Company or Laundry Corp., as
the case may be, together with evidence of the completion (or satisfactory arrangements for
the completion), of all recordings and filings of such Mortgage as may be necessary to
create a valid, perfected Lien, subject to Permitted Liens, against the Premises purported
to be covered thereby; and

     (b) the Collateral Agent shall have received a mortgagee’s title insurance policy in
favor of the Collateral Agent, as mortgagee for the ratable benefit of the Collateral Agent,
the Trustee and the Holders in an amount equal to 100% of the Fair Market Value of the
Premises purported to be covered by such Mortgage and issued by an insurer of national
reputation selected by the Company, insuring that title to the Premises is marketable and
that the interests created by the Mortgage constitute valid Liens thereon free and clear of
all Liens, defects and encumbrances other than Permitted Liens, and such policy shall be
accompanied by evidence of the payment in full of all premiums thereon.

ARTICLE FIVE

SUCCESSOR CORPORATION

          SECTION 5.01. Merger, Consolidation and Sale of Assets.

          (a) The Company shall not, in a single transaction or series of related transactions,
consolidate or merge with or into any Person, or sell, assign, transfer, lease, convey or otherwise
dispose of (or cause or permit any Restricted Subsidiary of the Company to sell, assign, transfer,
lease, convey or otherwise dispose of) all or substantially all of the Company’s assets (determined
on a consolidated basis for the Company and the Company’s Restricted Subsidiaries) whether as an
entirety or substantially as an entirety to any Person unless:

     (i) either (1) the Company shall be the surviving or continuing corporation or (2) the
Person (if other than the Company) formed by such consolidation or into which the Company is
merged or the Person which acquires by sale, assignment, transfer, lease, conveyance or
other disposition the properties and assets of the Company and of the Company’s Restricted
Subsidiaries substantially as an entirety (the “Surviving Entity”): (x) shall be a
corporation organized and validly existing under the laws of the United States or any State
thereof or the District of Columbia and (y) shall expressly assume, (A) by supplemental
indenture (in form and substance satisfactory to the Trustee), executed and delivered to the
Trustee, the due and punctual

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payment of the principal of and premium, if any, and interest on all of the Notes and
the performance of every covenant of the Notes, this Indenture and the Registration Rights
Agreement on the part of the Company to be performed or observed and (B) by amendment,
supplement or other instrument (in form and substance reasonably satisfactory to the Trustee
and the Collateral Agent), executed and delivered to the Trustee and the Collateral Agent,
all Obligations of the Company under the Collateral Agreements, and in connection therewith
shall cause such instruments to be filed and recorded in such jurisdictions and take such
other actions as may be required by applicable law to perfect or continue the perfection of
the Lien created under the Collateral Agreements on the Collateral owned by or transferred
to the surviving entity;

     (ii) immediately after giving effect to such transaction and the assumption
contemplated by clause (a)(i)(2)(y) of this Section 5.01 (including giving effect to any
Indebtedness and Acquired Indebtedness incurred or anticipated to be incurred in connection
with or in respect of such transaction), the Company or such Surviving Entity, as the case
may be, shall be able to incur at least $1.00 of additional Indebtedness (other than
Permitted Indebtedness) in compliance with Section 4.12;

     (iii) immediately before and immediately after giving effect to such transaction and
the assumption contemplated by clause (a)(i)(2)(y) of this Section 5.01 (including, without
limitation, giving effect to any Indebtedness and Acquired Indebtedness incurred or
anticipated to be incurred and any Lien granted in connection with or in respect of the
transaction), no Default or Event of Default shall have occurred or be continuing; and

     (iv) the Company or the Surviving Entity shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, sale, assignment, transfer, lease, conveyance or other disposition and, if a
supplemental indenture is required in connection with such transaction, such supplemental
indenture comply with the applicable provisions of this Indenture and that all conditions
precedent in this Indenture relating to such transaction have been satisfied.

          (b) For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise, in a
single transaction or series of transactions) of all or substantially all of the properties or
assets of one or more Restricted Subsidiaries of the Company the Capital Stock of which constitutes
all or substantially all of the properties and assets of the Company, shall be deemed to be the
transfer of all or substantially all of the properties and assets of the Company.

          Notwithstanding anything in this Section 5.01 to the contrary, (1) the Company may merge with
an Affiliate that has no material assets or liabilities and that is incorporated or organized
solely for the purpose of reincorporating or reorganizing the Company in another state of the
United States or the District of Columbia without complying with clause (a)(ii) of

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this Section 5.01, (2) the merger or consolidation of Coinmach Corp. with and into the Company
need only comply with clause (a)(iv) of this Section 5.01, and (3) the merger or consolidation of
the Company with and into Coinmach Corp. need only comply with clauses (a)(i)(2)(y) and (a)(iv) of
this Section 5.01.

          SECTION 5.02. Successor Corporation Substituted.

          Upon any consolidation, combination or merger or any transfer of all or substantially all of
the assets of the Company in accordance with the foregoing in which the Company is not the
continuing corporation, the successor Person formed by such consolidation or into which the Company
is merged or to which such conveyance, lease or transfer is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under this Indenture and
the Notes with the same effect as if such surviving entity had been named as such, and the Company
shall be released from the obligations under the Notes and this Indenture except in the case of a
lease of the Company’s assets and except with respect to any obligations under the Notes and this
Indenture that arise from, or related to, such transaction.

ARTICLE SIX

DEFAULT AND REMEDIES

          SECTION 6.01. Events of Default.

          An “Event of Default” shall occur if:

     (1) the Company fails to pay interest on any Notes when the same becomes due and
payable and the Default continues for a period of 30 days;

     (2) the Company fails to pay the principal on any Notes, when such principal becomes
due and payable, at maturity, upon redemption or otherwise (including the failure to make a
payment to purchase Notes tendered pursuant to a Change of Control Offer or a Net Proceeds
Offer or the failure to make any Sinking Fund payment);

     (3) the Company defaults in the observance or performance of any of the covenants
described in Sections 4.08, 4.16 and 4.19 which default continues for a period of 60 days
after the Company receives written notice specifying the default (and demanding that such
default be remedied) from the Trustee or the Holders of at least 25% of the aggregate
outstanding principal amount of the Notes;

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     (4) the Company defaults in the observance or performance of any other covenant or
agreement contained in this Indenture or any Collateral Agreement which default continues
for a period of 30 days after the Company receives written notice specifying the default
(and demanding that such default be remedied) from the Trustee or the Holders of at least
25% of the aggregate outstanding principal amount of the Notes (except in the case of a
default with respect to Article Five, which will constitute an Event of Default with such
notice requirement but without such passage of time requirement);

     (5) the Company fails to pay at final maturity (giving effect to any applicable grace
periods and any extensions thereof) the principal amount of any Indebtedness of the Company
or any Restricted Subsidiary of the Company, or the acceleration of the final stated
maturity of any such Indebtedness (which acceleration is not rescinded, annulled or
otherwise cured within 20 days of receipt by the Company or such Restricted Subsidiary of
notice of any such acceleration) if the aggregate principal amount of such Indebtedness,
together with the principal amount of any other such Indebtedness in default for failure to
pay principal at final maturity or which has been accelerated (in each case with respect to
which the 20-day period described above has elapsed), aggregates $10,000,000 or more at any
time; provided that, for purposes of this clause (5), the failure to pay at final
maturity any Indebtedness under the Intercompany Note and the Intercompany Note Guaranty, or
the acceleration of the final stated maturity of any Indebtedness under the Intercompany
Note and the Intercompany Note Guaranty (which acceleration is not rescinded, annulled or
otherwise cured within 20 days of receipt by Coinmach Corp. of written notice of any such
acceleration), shall be an Event of Default;

     (6) one or more judgments in an aggregate amount in excess of $10,000,000 (which are
not covered by insurance as to which the insurer has not disclaimed coverage) shall have
been rendered against the Company or any of its Restricted Subsidiaries and such judgments
remain undischarged, unpaid or unstayed for a period of 60 days after such judgment or
judgments become final and non-appealable;

     (7) the Company or any Significant Subsidiary (A) commences a voluntary case or
proceeding under any Bankruptcy Law with respect to itself, (B) consents to the entry of a
judgment, decree or order for relief against it in an involuntary case or proceeding under
any Bankruptcy Law, (C) consents to the appointment of a Custodian of it or for
substantially all of its property, (D) consents to or acquiesces in the institution of a
bankruptcy or an insolvency proceeding against it, (E) makes a general assignment for the
benefit of its creditors, or (F) takes any corporate action to authorize or effect any of
the foregoing;

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     (8) a court of competent jurisdiction enters a judgment, decree or order for relief in
respect of the Company or any Significant Subsidiary in an involuntary case or proceeding
under any Bankruptcy Law, which shall (A) approve as properly filed a petition seeking
reorganization, arrangement, adjustment or composition in respect of the Company or any
Significant Subsidiary, (B) appoint a Custodian of the Company or any Significant Subsidiary
or for substantially all of its property or (C) order the winding-up or liquidation of its
affairs; and such judgment, decree or order shall remain unstayed and in effect for a period
of 60 consecutive days;

     (9) any Collateral Agreement shall cease to be in full force and effect, or ceases to
be effective in all material respects to grant a perfected Lien on the Collateral with the
priority purported to be created thereby for 30 days after notice by the Trustee or the
Holders of at least 25% of the aggregate outstanding principal amount of the Notes to the
Company; and

     (10) any Subsidiary Guarantee of a Significant Subsidiary ceases following the delivery
thereof to be in full force and effect or any Subsidiary Guarantee of a Significant
Subsidiary is declared to be null and void and unenforceable or any Subsidiary Guarantee of
a Significant Subsidiary is found to be invalid or any Subsidiary Guarantor that is a
Significant Subsidiary denies its liability under its Subsidiary Guarantee (other than by
reason of release of a Subsidiary Guarantor in accordance with the terms of this Indenture).

          SECTION 6.02. Acceleration.

          (a) If an Event of Default (other than an Event of Default specified in Section 6.01(7) or (8)
with respect to the Company) occurs and is continuing and has not been waived pursuant to Section
6.04, then the Trustee or the Holders of at least 25% in principal amount of outstanding Notes may
declare the principal of and accrued interest on all the Notes to be due and payable by notice in
writing to the Company and the Trustee specifying the Event of Default and that it is a “notice of
acceleration,” and the same shall become immediately due and payable.

          (b) If an Event of Default specified in Section 6.01(7) or (8) with respect to the Company
occurs and is continuing, then all unpaid principal of, and premium, if any, and accrued and unpaid
interest on all of the outstanding Notes shall ipso facto become and be immediately
due and payable without any declaration or other act on the part of the Trustee or any Holder.

          (c) At any time after a declaration of acceleration with respect to the Notes in accordance
with this Section 6.02, the Holders of a majority in aggregate principal amount of the Notes, which
majority includes, if a Separation Event of Default has occurred, Holders of at least 10% in
aggregate principal amount of Notes that do not beneficially own (and are

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not Affiliates of a beneficial owner of) an equity interest of the Company (including but not
limited to Capital Stock of the Company), may rescind and cancel such declaration and its
consequences:

     (i) if the rescission would not conflict with any judgment or decree;

     (ii) if all existing Events of Default have been cured or waived except nonpayment of
principal or interest that has become due solely because of the acceleration;

     (iii) to the extent the payment of such interest is lawful, interest on overdue
installments of interest and overdue principal, which has become due otherwise than by such
declaration of acceleration, has been paid;

     (iv) if the Company has paid the Trustee and the Collateral Agent their reasonable
compensation and reimbursed the Trustee and the Collateral Agent for their expenses,
disbursements and advances; and

     (v) in the event of the cure or waiver of an Event of Default of the type described in
Sections 6.01(7) or (8), the Trustee shall have received an Officers’ Certificate and an
Opinion of Counsel that such Event of Default has been cured or waived.

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

          SECTION 6.03. Other Remedies.

          If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy
by proceeding at law or in equity to collect the payment of principal of or interest on the Notes
or to enforce the performance of any provision of the Notes or this Indenture.

          The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in
exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive
of any other remedy. All available remedies are cumulative to the extent permitted by law.

          SECTION 6.04. Waiver of Past Defaults.

          Subject to Sections 2.09, 6.07 and 9.02, the Holders of a majority in principal amount of the
outstanding Notes, which majority includes, if a Separation Event of Default has occurred, Holders
of at least 10% in aggregate principal amount of Notes that do not

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beneficially own (and are not Affiliates of a beneficial owner of) an equity interest of the
Company (including but not limited to Capital Stock of the Company), by notice to the Trustee may
waive any existing Default or Event of Default and its consequences, except a Default in the
payment of principal of or interest on any Note as specified in clauses (1) and (2) of Section
6.01. When a Default or Event of Default is waived, it is cured and ceases.

          SECTION 6.05. Control by Majority.

          Subject to Section 2.09, the Holders of a majority in aggregate principal amount of the
outstanding Notes may direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on the Trustee, including,
without limitation, any remedies provided for in Section 6.03. Subject to Section 7.01, however,
the Trustee may refuse to follow any direction that the Trustee reasonably believes conflicts with
any law or this Indenture, that the Trustee determines may be unduly prejudicial to the rights of
another Holder, or that may involve the Trustee in personal liability; provided that the
Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such
direction.

          SECTION 6.06. Limitation on Suits.

          A Holder may not pursue any remedy with respect to this Indenture or the Notes unless:

     (1) the Holder gives to the Trustee written notice of a continuing Event of Default;

     (2) Holders of at least 25% in principal amount of the outstanding Notes make a written
request to the Trustee to pursue the remedy;

     (3) such Holders offer to the Trustee indemnity reasonably satisfactory to the Trustee
against any loss, liability or expense to be incurred in compliance with such request;

     (4) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer of satisfactory indemnity; and

     (5) during such 60-day period the Holders of a majority in principal amount of the
outstanding Notes (and, in the case of any rescission and cancellation pursuant to Section
6.02(c) or a waiver pursuant to Section 6.04, Holders of at least 10% in the aggregate
principal amount of the Notes that do not own (and are not Affiliates of a beneficial owner
of) an equity interest of the Company (including but not limited to Capital Stock of the
Company)) do not give the Trustee a direction which, in the opinion of the Trustee, is
inconsistent with the request.

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          The foregoing limitations shall not apply to a suit instituted by a Holder for the enforcement
of the payment of principal and premium, if any, or interest on such Note on or after the
respective due dates set forth in such Note (including upon acceleration thereof) or the
institution of any proceeding with respect to this Indenture or any remedy hereunder, including
without limitation acceleration, by the Holders of a majority in principal amount of outstanding
Notes; provided that upon institution of any proceeding or exercise of any remedy, such
Holders provide the Trustee with prompt notice thereof.

          A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over such other Holder.

          SECTION 6.07. Rights of Holders To Receive Payment.

          Notwithstanding any other provision of this Indenture, the right of any Holder to receive
payment of principal of and interest on a Note, on or after the respective due dates expressed in
such Note, or to bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder.

          SECTION 6.08. Collection Suit by Trustee.

          If an Event of Default in payment of principal or interest specified in clause (1) or (2) of
Section 6.01 occurs and is continuing, the Trustee may recover judgment in its own name and as
trustee of an express trust against the Company or any other obligor on the Notes for the whole
amount of principal and accrued interest remaining unpaid, together with interest on overdue
principal and, to the extent that payment of such interest is lawful, interest on overdue
installments of interest at the rate set forth in Section 4.01 and such further amount as shall be
sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

          SECTION 6.09. Trustee May File Proofs of Claim.

          The Trustee may file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, taxes, disbursements and advances of the Trustee, its agents and counsel)
and the Holders allowed in any judicial proceedings relating to the Company or any other obligor
upon the Notes, any of their respective creditors or any of their respective property and shall be
entitled and empowered to collect and receive any monies or other property payable or deliverable
on any such claims and to distribute the same, and any Custodian in any such judicial proceedings
is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee
any amount due to it for the reasonable compensation, expenses, taxes, disbursements and advances
of the Trustee, its agent and counsel, and any other amounts due the Trustee under Section 7.07.
The Company’s payment

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obligations under this Section 6.09 shall be secured in accordance with the provisions of
Section 7.07. Nothing herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder thereof, or to authorize
the Trustee to vote in respect of the claim of any Holder in any such proceeding.

          SECTION 6.10. Priorities.

          If the Trustee collects any money or property pursuant to this Article Six, it shall pay out
the money in the following order:

     First: to the Trustee for amounts due under Section 7.07;

     Second: if the Holders are forced to proceed against the Company directly without the
Trustee, to Holders for their collection costs;

     Third: to Holders for amounts due and unpaid on the Notes for principal and interest,
ratably, without preference or priority of any kind, according to the amounts due and
payable on the Notes for principal and interest, respectively; and

     Fourth: to the Company,

or as a court of competent jurisdiction may direct.

          The Trustee, upon prior notice to the Company, may fix a record date and payment date for any
payment to Holders pursuant to this Section 6.10.

          SECTION 6.11. Undertaking for Costs.

          In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.07, or a suit by a Holder or Holders
of more than 10% in principal amount of the outstanding Notes.

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ARTICLE SEVEN

TRUSTEE

          SECTION 7.01. Duties of Trustee.

          (a) If a Default or an Event of Default has occurred and is continuing, the Trustee shall
exercise such of the rights and powers vested in it by this Indenture and use the same degree of
care and skill in its exercise thereof as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

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

     (1) The Trustee need perform only those duties as are specifically set forth in this
Indenture and no covenants or obligations shall be implied in this Indenture against the
Trustee.

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

          (c) Notwithstanding anything to the contrary herein contained, the Trustee may not be relieved
from liability for its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

     (1) This paragraph does not limit the effect of paragraph (b) of this Section 7.01.

     (2) The Trustee shall not be liable for any error of judgment made in good faith by a
Trust Officer, unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts.

     (3) The Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.02,
6.04 or 6.05.

          (d) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties hereunder or in
the exercise of any of its rights or powers if it shall have reasonable

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grounds for believing that repayment of such funds or adequate indemnity against such risk or
liability is not reasonably assured to it.

          (e) Every provision of this Indenture that in any way relates to the Trustee is subject to
paragraphs (a), (b), (c) and (d) of this Section 7.01.

          (f) The Trustee shall not be liable for interest on any money or assets received by it except
as the Trustee may agree in writing with the Company. Assets held in trust by the Trustee need not
be segregated from other assets except to the extent required by law.

          SECTION 7.02. Rights of Trustee.

          Subject to Section 7.01:

     (a) The Trustee may conclusively rely and shall be fully protected in acting or
refraining from acting upon any document reasonably believed by it to be genuine and to have
been signed or presented by the proper Person. The Trustee need not investigate any fact or
matter stated in the document.

     (b) Before the Trustee acts or refrains from acting, it may consult with counsel and
may require an Officers’ Certificate or an Opinion of Counsel, or both, which shall conform
to Sections 12.04 and 12.05. The Trustee shall not be liable for any action it takes or
omits to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel.

     (c) The Trustee may act through its attorneys and agents and shall not be responsible
for the misconduct or negligence of any agent appointed with due care.

     (d) The Trustee shall not be liable for any action that it takes or omits to take in
good faith which it reasonably believes to be authorized or within its rights or powers.

     (e) The Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, notice, request,
direction, consent, order, bond, debenture, or other paper or document, but the Trustee, in
its discretion, may make such further inquiry or investigation into such facts or matters as
it may see fit and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled, upon reasonable notice to the Company, to examine the
books, records and premises of the Company, personally or by agent or attorney and to
consult with the officers and representatives of the Company, including the Company’s
accountants and attorneys at the expense of the Company and shall incur no liability of any
kind by reason of such inquiry or investigation.

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     (f) The Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request, order or direction of any of the Holders
pursuant to the provisions of this Indenture unless such Holders shall have offered to the
Trustee security or indemnity reasonably satisfactory to the Trustee against the costs,
expenses and liabilities which may be incurred by it in compliance with such request, order
or direction.

     (g) The Trustee shall not be required to give any bond or surety in respect of the
performance of its powers and duties hereunder.

     (h) In no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of
profit) irrespective of whether the Trustee has been advised of the likelihood of such loss
or damage and regardless of the form of action.

     (i) The Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written
notice of any event which is in fact such a default is received by the Trustee at the
Corporate Trust Office of the Trustee, and such notice references the Securities and this
Indenture.

     (j) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian
and other Person employed to act hereunder.

          SECTION 7.03. Individual Rights of Trustee.

          The Trustee in its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Company, any Subsidiary of the Company or their respective
Affiliates with the same rights it would have if it were not Trustee. Any Agent may do the same
with like rights. However, the Trustee must comply with Sections 7.10 and 7.11.

          SECTION 7.04. Trustee’s Disclaimer.

          The Trustee makes no representation as to the validity or adequacy of this Indenture or the
Notes, and it shall not be accountable for the Company’s use of the proceeds from the Notes, and it
shall not be responsible for any statement of the Company in this Indenture or the Notes other than
the Trustee’s certificate of authentication.

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          SECTION 7.05. Notice of Default.

          If a Default or an Event of Default occurs and is continuing and if it is known to the
Trustee, the Trustee shall mail to each Holder notice of the uncured Default or Event of Default
within 90 days after such Default or Event of Default becomes known to the Trustee. Except in the
case of a Default or an Event of Default in payment of principal of, or interest on, any Note,
including an accelerated payment and the failure to make payment on the Change of Control Payment
Date pursuant to a Change of Control Offer or on the Net Proceeds Offer Payment Date pursuant to a
Net Proceeds Offer and, except in the case of a failure to comply with Article Five, the Trustee
may withhold the notice if and so long as its Board of Directors, the executive committee of its
Board of Directors or a committee of its directors and/or Trust Officers in good faith determines
that withholding the notice is in the interest of the Holders.

          SECTION 7.06. Reports by Trustee to Holders.

          Within 60 days after each May 15, the Trustee shall, to the extent that any of the events
described in TIA § 313(a) occurred within the previous twelve months, but not otherwise, mail to
each Holder a brief report dated as of such date that complies with TIA § 313(a). The Trustee also
shall comply with TIA §§ 313(b) and (c).

          A copy of each report at the time of its mailing to Holders shall be mailed to the Company and
filed with the SEC and each stock exchange, if any, on which the Notes are listed.

          The Company shall promptly notify the Trustee if the Notes become listed on any stock exchange
and the Trustee shall comply with TIA § 313(d).

          SECTION 7.07. Compensation and Indemnity.

          The Company shall pay to the Trustee from time to time reasonable compensation for its
services. The Trustee’s compensation shall not be limited by any law on compensation of a trustee
of an express trust. The Company shall reimburse the Trustee upon request for all reasonable
out-of-pocket expenses incurred or made by it in connection with the performance of its duties
under this Indenture. Such expenses shall include the reasonable fees and expenses of the
Trustee’s agents and counsel.

          Each of the Company and the Subsidiary Guarantors shall, jointly and severally, indemnify the
Trustee and its agents, employees, stockholders and directors and officers for, and hold them
harmless against, any loss, liability, claim, damage or expense incurred by them except for such
actions to the extent determined to have been caused by their own negligence, bad faith or willful
misconduct, arising out of or in connection with the administration of this trust including the
reasonable costs and expenses of enforcing this Indenture against

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the Company (including this Section 7.07) and defending themselves against any claim or
liability in connection with the exercise or performance of any of their rights, powers or duties
hereunder. The Trustee shall notify the Company promptly of any claim asserted against the Trustee
for which it may seek indemnity. Failure by the Trustee to so notify the Company shall not relieve
the Company of its obligations hereunder. The Company shall defend the claim and the Trustee shall
cooperate and may participate in the defense; provided that any settlement of a claim shall
be approved in writing by the Trustee. Alternatively, the Trustee may at its option have separate
counsel of its own choosing and the Company shall pay the reasonable fees and expenses of such
counsel; provided that the Company will not be required to pay such fees and expenses if it
assumes the Trustee’s defense and there is no conflict of interest between the Company and the
Trustee in connection with such defense as reasonably determined by the Trustee. The Company need
not pay for any settlement made without its written consent, which consent shall not be
unreasonably withheld. The Company need not reimburse any expense or indemnify against any loss or
liability to the extent incurred by the Trustee through its own negligence, bad faith or willful
misconduct.

          To secure the Company’s payment obligations in this Section 7.07, the Trustee shall have a
lien prior to the Notes on all assets or money held or collected by the Trustee, in its capacity as
Trustee, except assets or money held in trust to pay principal of or interest on particular Notes.

          When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 6.01(7) or (8) occurs, such expenses and the compensation for such services are intended to
constitute expenses of administration under any Bankruptcy Law.

          The obligations of the Company under this Section 7.07 shall survive the satisfaction and
discharge of this Indenture.

          SECTION 7.08. Replacement of Trustee.

          The Trustee may resign by so notifying the Company. The Holders of a majority in principal
amount of the outstanding Notes may remove the Trustee by so notifying the Company and the Trustee
and may appoint a successor Trustee. The Company may remove the Trustee if:

     (1) the Trustee fails to comply with Section 7.10;

     (2) the Trustee is adjudged bankrupt or insolvent;

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

     (4) the Trustee becomes incapable of acting.

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          If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall notify each Holder of such event and shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in
principal amount of the Notes may appoint a successor Trustee to replace the successor Trustee
appointed by the Company.

          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Promptly after that, the retiring Trustee shall, upon payment of its
charges hereunder, transfer all property held by it as Trustee to the successor Trustee, subject to
the lien provided in Section 7.07, the resignation or removal of the retiring Trustee shall become
effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. A successor Trustee shall mail notice of its succession to each Holder.

          If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Company or the Holders of at least 10% in principal amount
of the outstanding Notes may, at the expense of the Company, petition any court of competent
jurisdiction for the appointment of a successor Trustee.

          If the Trustee fails to comply with Section 7.10, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

          Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company’s
obligations under Section 7.07 shall continue for the benefit of the retiring Trustee.

          SECTION 7.09. Successor Trustee by Merger, Etc.

          If the Trustee consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation, the resulting, surviving or transferee
corporation without any further act shall, if such resulting, surviving or transferee corporation
is otherwise eligible hereunder, be the successor Trustee; provided that such corporation shall be
otherwise qualified and eligible under this Article Seven.

          SECTION 7.10. Eligibility; Disqualification.

          This Indenture shall always have a Trustee who satisfies the requirements of TIA §§ 310(a)(1),
(2) and (5). The Trustee (or, in the case of a corporation included in a bank holding company
system, the related bank holding company) shall have a combined capital and surplus of at least $50
million as set forth in its most recent published annual report of condition. In addition, if the
Trustee is a corporation included in a bank holding company system, the Trustee, independently of
such bank holding company, shall meet the capital

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requirements of TIA § 310(a)(2). The Trustee shall comply with TIA § 310(b); provided, however,
that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or indentures
under which other securities, or certificates of interest or participation in other securities, of
the Company are outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are
met. The provisions of TIA § 310 shall apply to the Company, as obligor of the Notes.

          SECTION 7.11. Preferential Collection of Claims Against Company.

          The Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA
§ 311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the
extent indicated therein.

ARTICLE EIGHT

SATISFACTION AND DISCHARGE OF INDENTURE

          SECTION 8.01. Legal Defeasance and Covenant Defeasance.

          (a) The Company may, at its option and at any time, elect to have either paragraph (b) or
paragraph (c) below be applied to the outstanding Notes upon compliance with the applicable
conditions set forth in paragraph (d).

          (b) Upon the Company’s exercise under paragraph (a) of the option applicable to this paragraph
(b), the Company and the Subsidiary Guarantors shall be deemed to have been released and discharged
from their obligations (and all Liens on Collateral in connection with the issuance of the Notes)
with respect to the outstanding Notes on the date the conditions set forth below are satisfied
(hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the
Company shall be deemed to have paid and discharged the entire Indebtedness represented by the
outstanding Notes, which shall thereafter be deemed to be “outstanding” only for the purposes of
the Sections and matters under this Indenture referred to in clauses (i) and (ii) below, and to
have satisfied all its other obligations under such Notes and this Indenture insofar as such Notes
are concerned, except for the following which shall survive until otherwise terminated or
discharged hereunder: (i) the rights of Holders of outstanding Notes to receive solely from the
trust fund described in paragraph (d) below and as more fully set forth in such paragraph payments
in respect of the principal of and interest on such Notes when such payments are due and (ii)
obligations listed in Section 8.03, subject to compliance with this Section 8.01. The Company may
exercise its option under this paragraph (b) notwithstanding the prior exercise of its option under
paragraph (c) below with respect to the Notes.

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          (c) Upon the Company’s exercise under paragraph (a) of the option applicable to this paragraph
(c), the Company shall be released and discharged from its obligations under any covenant contained
in Article Five, Sections 4.05 and 4.08, Sections 4.10 through 4.24 and Section 4.26 with respect
to the outstanding Notes (including any such obligation that required that Collateral be provided
by the Company to secure the Notes) on and after the date the conditions set forth below are
satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed to
be not “outstanding” for the purpose of any direction, waiver, consent or declaration or act of
Holders (and the consequences of any thereof) in connection with such covenants, but shall continue
to be deemed “outstanding” for all other purposes hereunder (it being understood that such Notes
shall not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance
means that, with respect to the outstanding Notes, the Company may omit to comply with and shall
have no liability in respect of any term, condition or limitation set forth in any such covenant,
whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or
by reason of any reference in any such covenant to any other provision herein or in any other
document and such omission to comply shall not constitute a Default or an Event of Default under
Section 6.01(3) or 6.01(4), but, except as specified above, the remainder of this Indenture and
such Notes shall be unaffected thereby. In addition, upon the Company’s exercise under paragraph
(a) hereof of the option applicable to this paragraph (c), and subject to the satisfaction of the
conditions set forth in Section 8.03, Sections 6.01(3), 6.01(4), 6.01(5), 6.01(6), 6.01(9) and
6.01(10) shall not constitute Events of Default.

          (d) The following shall be the conditions to application of either paragraph (b) or paragraph
(c) above to the outstanding Notes:

     (1) The Company shall have irrevocably deposited in trust with the Trustee, pursuant to
an irrevocable trust and security agreement in form and substance reasonably satisfactory to
the Trustee, U.S. Legal Tender or U.S. Government Obligations or a combination thereof in
such amounts and at such times as are sufficient, in the opinion of a nationally recognized
firm of independent public accountants, to pay the principal of and interest on the
outstanding Notes to maturity or redemption; provided, however, that the
Trustee (or other qualifying trustee) shall have received an irrevocable written order from
the Company instructing the Trustee (or other qualifying trustee) to apply such U.S. Legal
Tender or the proceeds of such U.S. Government Obligations to said payments with respect to
the Notes to maturity or redemption;

     (2) No Default or Event of Default shall have occurred and be continuing on the date of
such deposit or insofar as Events of Default from bankruptcy or insolvency events are
concerned at any time in the period ending on the 91st day after the date of deposit (other
than a Default or Event of Default resulting from the Incurrence of Indebtedness, all or a
portion of which will be used to defease the Notes concurrently with such Incurrence, and
the granting of any Lien securing such Indebtedness);

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     (3) Such deposit will not result in a Default under this Indenture or a breach or
violation of, or constitute a default under, this Indenture (other than a Default or Event
of Default resulting from the Incurrence of Indebtedness, all or a portion of which will be
used to defease the Notes concurrently with such Incurrence, and the granting of any Lien
securing such Indebtedness) or any other material instrument or agreement to which the
Company or any of its Subsidiaries is a party or by which it or its property is bound;

     (4) (i) In the event the Company elects paragraph (b) hereof, the Company shall deliver
to the Trustee an Opinion of Counsel in the United States, in form and substance reasonably
satisfactory to the Trustee, to the effect that (A) the Company has received from, or there
has been published by, the Internal Revenue Service a ruling or (B) since the Issue Date,
there has been a change in the applicable federal income tax law, in either case to the
effect that, and based thereon such Opinion of Counsel shall state that, Holders of the
Notes will not recognize income, gain or loss for federal income tax purposes as a result of
such deposit and the defeasance contemplated hereby and will be subject to federal income
tax in the same amounts and in the same manner and at the same times as would have been the
case if such deposit and defeasance had not occurred or (ii) in the event the Company elects
paragraph (c) hereof, the Company shall deliver to the Trustee an Opinion of Counsel in the
United States, in form and substance reasonably satisfactory to the Trustee, to the effect
that Holders of the Notes will not recognize income, gain or loss for federal income tax
purposes as a result of such deposit and the defeasance contemplated hereby and will be
subject to federal income tax in the same amounts and in the same manner and at the same
times as would have been the case if such deposit and defeasance had not occurred;

     (5) The Company shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit under clause (1) was not made by the Company with the intent of preferring
the Holders over any other creditors of the Company or with the intent of defeating,
hindering, delaying or defrauding any other creditors of the Company or others;

     (6) The Company shall have delivered to the Trustee an Opinion of Counsel, reasonably
satisfactory to the Trustee, to the effect that (A) the trust funds will not be subject to
the rights of holders of Indebtedness of the Company other than the Notes and (B) assuming
no intervening bankruptcy of the Company between the date of deposit and the 91st day
following the date of deposit and that no Holder of Notes is an insider of the Company,
after the 91st day following the date of deposit, the trust funds will not be subject to any
applicable bankruptcy, insolvency, reorganization or similar law affecting creditors’ rights
generally; and

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     (7) The Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent specified herein relating to the
defeasance contemplated by this Section 8.01 have been complied with.

Notwithstanding the foregoing, the Opinion of Counsel required by Section 8.01(d)(4)(i) above with
respect to a Legal Defeasance need not be delivered if all Notes not theretofore delivered to the
Trustee for cancellation (1) have become due and payable or (2) will become due and payable on the
maturity date within one year under arrangements satisfactory to the Trustee for the giving of
notice of redemption by the Trustee in the name, and at the expense, of the Company.

          In the event all or any portion of the Notes are to be redeemed through such irrevocable
trust, the Company must make arrangements reasonably satisfactory to the Trustee, at the time of
such deposit, for the giving of the notice of such redemption or redemptions by the Trustee in the
name and at the expense of the Company.

          SECTION 8.02. Satisfaction and Discharge.

          In addition to the Company’s rights under Section 8.01, the Company may terminate all of its
obligations under this Indenture (and all Liens on Collateral in connection with the issuance of
the Notes) (subject to Section 8.03) when:

     (1) either (a) all Notes theretofore authenticated and delivered (other than Notes
which have been destroyed, lost or stolen and which have been replaced or paid as provided
in Section 2.07 and Notes for whose payment money has theretofore been deposited in trust or
segregated and held in trust by the Company and thereafter repaid to the Company or
discharged from such trust) have been delivered to the Trustee for cancellation or (b) all
such Notes not theretofore delivered to the Trustee for cancellation have become due and
payable by reason of mailing of a notice of redemption or otherwise or will become due and
payable within one year and the Company has irrevocably deposited or caused to be deposited
with the Trustee as trust funds in trust solely for that purpose an amount of money
sufficient to pay and discharge the entire Indebtedness on the Notes not theretofore
delivered to the Trustee for cancellation, for principal of, premium, if any, and interest
on the Notes to the date of deposit (in the case of Notes that have become due and payable)
or to the stated maturity or redemption date, as the case may be;

     (2) the Company has paid or caused to be paid all other sums payable hereunder by the
Company;

     (3) the Company has delivered irrevocable instructions to the Trustee to apply the
deposited money toward the payment of the Notes at maturity or redemption, as the case may
be; and

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     (4) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel stating that all conditions precedent specified herein relating to the satisfaction
and discharge of this Indenture have been complied with,

(the satisfaction of the conditions set forth in clauses (1) through (4) above is referred to
herein as a “Satisfaction and Discharge”).

          SECTION 8.03. Survival of Certain Obligations.

          Notwithstanding the satisfaction and discharge of this Indenture and of the Notes referred to
in Section 8.01 or 8.02, the respective obligations of the Company and the Trustee under Sections
2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.10, 2.13, 2.16, 4.01, 4.02 and 6.07, Article Seven and
Sections 8.05, 8.06 and 8.07 shall survive until the Notes are no longer outstanding, and
thereafter the obligations of the Company and the Trustee and the Collateral Agent under Sections
7.07, 8.05, 8.06 and 8.07 shall survive such satisfaction and discharge. Nothing contained in this
Article Eight shall abrogate any of the obligations or duties of the Trustee under this Indenture.

          SECTION 8.04. Acknowledgment of Discharge by Trustee.

          Subject to Section 8.07, after (i) the conditions of Section 8.01 or 8.02 have been satisfied,
(ii) the Company has paid or caused to be paid all other sums payable hereunder by the Company and
(iii) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that all conditions precedent referred to in clause (i) above relating to the
satisfaction and discharge of this Indenture have been complied with, the Trustee upon written
request shall acknowledge in writing the discharge of the Company’s obligations under this
Indenture except for those surviving obligations specified in Section 8.03.

          SECTION 8.05. Application of Trust Moneys.

          The Trustee shall hold any U.S. Legal Tender or U.S. Government Obligations deposited with it
in the irrevocable trust established pursuant to Section 8.01. The Trustee shall apply the
deposited U.S. Legal Tender or the U.S. Government obligations, together with earnings thereon,
through the Paying Agent, in accordance with this Indenture and the terms of the irrevocable trust
agreement established pursuant to Section 8.01, to the payment of principal of and interest on the
Notes. Anything in this Article Eight to the contrary notwithstanding, the Trustee shall deliver
or pay to the Company from time to time upon the Company’s request any U.S. Legal Tender or U.S.
Government Obligations held by it as provided in Section 8.01(d) which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, are in excess of the amount thereof that would then be required
to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

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          SECTION 8.06. Repayment to the Company; Unclaimed Money.

          Subject to Sections 7.07, 8.01 and 8.02, the Trustee and the Paying Agent shall promptly pay
to the Company upon request any excess U.S. Legal Tender or U.S. Government Obligations held by
them at any time. The Trustee and the Paying Agent will pay to the Company upon receipt by the
Trustee or the Paying Agent, as the case may be, of an Officers’ Certificate any money held by it
for the payment of principal or interest that remains unclaimed for two years after payment to the
Holders is required; provided, however, that the Trustee and the Paying Agent
before being required to make any payment may, but need not, at the expense of the Company cause to
be published once in a newspaper of general circulation in the City of New York or mail to each
Holder entitled to such money notice that such money remains unclaimed and that after a date
specified therein, which shall be at least 30 days from the date of such publication or mailing,
any unclaimed balance of such money then remaining will be repaid to the Company. After payment to
the Company, Holders entitled to money must look solely to the Company for payment as general
creditors unless an applicable abandoned property law designated another Person, and all liability
of the Trustee or Paying Agent with respect to such money shall thereupon cease.

          SECTION 8.07. Reinstatement.

          If the Trustee or Paying Agent is unable to apply any U.S. Legal Tender or U.S. Government
Obligations in accordance with Section 8.01 or 8.02 by reason of any legal proceeding or by reason
of any order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the Company’s obligations under this Indenture and the Notes shall be
revived and reinstated as though no deposit had occurred pursuant to Section 8.01 or 8.02 until
such time as the Trustee or Paying Agent is permitted to apply all such U.S. Legal Tender or U.S.
Government Obligations in accordance with Section 8.01 or 8.02; provided, however, that if the
Company has made any payment of interest on or principal of any Notes because of the reinstatement
of its obligations, the Company shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money or U.S. Government Obligations held by the Trustee or Paying
Agent.

ARTICLE NINE

AMENDMENTS, SUPPLEMENTS AND WAIVERS

          SECTION 9.01. Without Consent of Holders.

          The Company and the Subsidiary Guarantors, when authorized by a Board Resolution, and the
Trustee together may amend or supplement this Indenture, the Notes or

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the Subsidiary Guarantees and, with the consent of the Collateral Agent, the Collateral
Agreements, without notice to or consent of any Holder:

     (1) to cure any ambiguity, defect or inconsistency; provided that such
amendment or supplement does not in the opinion of the Trustee adversely affect the rights
of any Holder in any material respect;

     (2) to comply with Article Five;

     (3) to provide for uncertificated Notes or Subsidiary Guarantees in addition to or in
place of certificated Notes or Subsidiary Guarantees;

     (4) to comply with any requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA;

     (5) to comply with the provisions of the Depositary or the Trustee with respect to the
provisions of this Indenture and the Notes relating to transfers and exchanges of Notes or
beneficial interests in the Notes;

     (6) to make any change that would provide any additional benefits or rights to the
Holders or that does not adversely affect the rights of any Holder;

     (7) to make such technical changes necessary to permit or cause the exchange of a
portion of any Notes not issued in a Primary Registered Offering for a portion of any OID
Exchange Units, and the exchange of a portion of any OID Exchange Units for a portion of any
Notes not issued in a Primary Registered Offering, in each case, on similar terms as are
provided for in the OID Exchange provisions of Section 4.25(a) to the extent that such
exchanges are not then prohibited by applicable law or the rules, regulations and policies
of the SEC; or

     (8) to provide for issuance of Exchange Notes hereunder;

provided that the Company has delivered to the Trustee an Opinion of Counsel and an
Officers’ Certificate stating that such amendment or supplement complies with the provisions of
this Section 9.01.

          Notwithstanding the foregoing, in formulating its opinion in regards to Section 9.01(1), the
Trustee shall be entitled to rely on such evidence as it deems appropriate, including, without
limitation, solely on an Opinion of Counsel.

          SECTION 9.02. With Consent of Holders.

          Subject to Section 6.07, the Company and the Subsidiary Guarantors, when authorized by a Board
Resolution, and the Trustee together, with the written consent of the

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Holder or Holders of at least a majority in aggregate principal amount of the outstanding
Notes, may amend or supplement this Indenture, the Notes or the Subsidiary Guarantees and, with the
consent of the Collateral Agent, the Collateral Agreements and the Intercreditor Agreement, without
notice to any other Holders. Subject to Sections 6.04 and 6.07, the Holder or Holders of a
majority in aggregate principal amount of the outstanding Notes may waive compliance by the Company
and the applicable Subsidiaries with any provision of this Indenture, the Notes, the Collateral
Agreements or the Intercreditor Agreement without notice to any other Holder, except that no
amendment, supplement or waiver, including a waiver pursuant to Section 6.04, shall, without the
consent of each Holder of each Note affected thereby:

     (1) reduce the amount of Notes whose Holders must consent to an amendment, supplement
or waiver of any provision of this Indenture, the Notes, the Collateral Agreements or the
Intercreditor Agreement;

     (2) reduce the rate of or change or have the effect of changing the time for payment of
interest, including default interest, on any Notes (other than any advance notice
requirement with respect to any redemption);

     (3) reduce the principal of or change or have the effect of changing the fixed maturity
of any Notes, or change the date on which any Notes may be subject to redemption or reduce
the redemption price therefor;

     (4) make any Notes payable in money other than that stated in the Notes;

     (5) make any change in provisions of this Indenture protecting the right of each Holder
to receive payment of principal of and interest on such Note on or after the due date
thereof or to bring suit to enforce such payment or permitting holders of a majority in
principal amount of a class of Notes to waive Defaults or Events of Default;

     (6) after the Company’s obligation to purchase Notes arises thereunder, amend, change
or modify in any material respect the obligation of the Company to make and consummate a
Change of Control Offer in the event of a Change of Control or make and consummate a Net
Proceeds Offer with respect to any Asset Sale that has been consummated or make and
consummate a mandatory Sinking Fund redemption or, after such Change of Control has occurred
or such Asset Sale has been consummated, modify any of the provisions or definitions with
respect thereto;

     (7) modify or change any provision of this Indenture or the related definitions or of
the Intercreditor Agreement affecting the ranking of the Notes or any Subsidiary Guarantee
in a manner which adversely affects the Holders;

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     (8) release any Subsidiary Guarantor that is a Significant Subsidiary from any of its
obligations under its Subsidiary Guarantee or this Indenture otherwise than in accordance
with the terms of this Indenture; or

     (9) release all or substantially all of the Collateral otherwise than in accordance
with the terms of this Indenture and the Collateral Agreements.

          It shall not be necessary for the consent of the Holders under this Section 9.02 to approve
the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if
such consent approves the substance thereof.

          After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Company shall mail to the Holders affected thereby a notice briefly describing the amendment,
supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such supplemental indenture.

          SECTION 9.03. Compliance with TIA.

          Every amendment, waiver or supplement of this Indenture, the Notes or the Subsidiary
Guarantees or of the Collateral Agreements or the Intercreditor Agreement shall comply with the TIA
as then in effect.

          SECTION 9.04. Revocation and Effect of Consents.

          Until an amendment, waiver or supplement becomes effective, a consent to it by a Holder is a
continuing consent by the Holder and every subsequent Holder of a Note or portion of a Note that
evidences the same debt as the consenting Holder’s Note, even if notation of the consent is not
made on any Note. Subject to the following paragraph, any such Holder or subsequent Holder may
revoke the consent as to such Holder’s Note or portion of such Note by notice to the Trustee or the
Company received before the date on which the Trustee receives an Officers’ Certificate certifying
that the Holders of the requisite principal amount of Notes have consented (and not theretofore
revoked such consent) to the amendment, supplement or waiver.

          The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement or waiver, which record
date shall be at least 30 days prior to the first solicitation of such consent. If a record date
is fixed, then notwithstanding the last sentence of the immediately preceding paragraph, those
Persons who were Holders at such record date (or their duly designated proxies), and only those
Persons, shall be entitled to revoke any consent previously given, whether or not such Persons
continue to be Holders after such record date. No such consent shall be valid or effective for
more than 90 days after such record date.

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          After an amendment, supplement or waiver becomes effective, it shall bind every Holder unless
it makes a change described in any of clauses (1) through (9) of Section 9.02, in which case, the
amendment, supplement or waiver shall bind only each Holder of a Note who has consented to it and
every subsequent Holder of a Note or portion of a Note that evidences the same debt as the
consenting Holder’s Note; provided that any such waiver shall not impair or affect the
right of any Holder to receive payment of principal of and interest on a Note, on or after the
respective due dates expressed in such Note, or to bring suit for the enforcement of any such
payment on or after such respective dates without the consent of such Holder.

          SECTION 9.05. Notation on or Exchange of Notes.

          If an amendment, supplement or waiver changes the terms of a Note, the Trustee may require the
Holder of the Note to deliver the Note to the Trustee. The Trustee at the written direction of the
Company may place an appropriate notation on the Note about the changed terms and return it to the
Holder. Alternatively, if the Company or the Trustee so determines, the Company in exchange for
the Note shall issue and the Trustee shall authenticate a new Note that reflects the changed terms.
Any such notation or exchange shall be made at the sole cost and expense of the Company.

          SECTION 9.06. Trustee To Sign Amendments, Etc.

          The Trustee shall execute any amendment, supplement or waiver authorized pursuant to this
Article Nine; provided that the Trustee may, but shall not be obligated to, execute any
such amendment, supplement or waiver that affects the Trustee’s own rights, duties or immunities
under this Indenture. The Trustee shall be provided with, and shall be fully protected in relying
upon, an Opinion of Counsel and an Officers’ Certificate each stating that the execution of any
amendment, supplement or waiver authorized pursuant to this Article Nine is authorized or permitted
by this Indenture. Such Opinion of Counsel shall not be an expense of the Trustee.

ARTICLE TEN

GUARANTEE

          SECTION 10.01. Guarantee.

          Each Subsidiary Guarantor hereby unconditionally, jointly and severally, guarantees (such
guarantee to be referred to herein as a “Subsidiary Guarantee”), to each of the Holders and
to the Trustee and their respective successors and assigns that (i) the principal of and interest
on the Notes will be promptly paid in full when due, subject to any applicable

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grace period, whether at maturity, upon redemption, by acceleration or otherwise, and interest
on the overdue principal, if any, and interest on any interest, if any, to the extent lawful, of
the Notes and all other obligations of the Company to the Holders or the Trustee hereunder or
thereunder will be promptly paid in full or performed, all in accordance with the terms hereof and
thereof; and (ii) in case of any extension of time of payment or renewal of any of the Notes or of
any such other obligations, the same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, subject to any applicable grace period,
whether at stated maturity, by acceleration or otherwise, subject, however, in the case of clauses
(i) and (ii) above, to the limitations set forth in Section 10.03. Each Subsidiary Guarantor
hereby agrees that its obligations hereunder shall be unconditional, irrespective of the validity,
regularity or enforceability of the Notes or this Indenture, the absence of any action to enforce
the same, any waiver or consent by any of the Holders with respect to any provisions hereof or
thereof, the recovery of any judgment against the Company, any action to enforce the same or any
other circumstance which might otherwise constitute a legal or equitable discharge or defense of a
Subsidiary Guarantor. Each Subsidiary Guarantor hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any
right to require a proceeding first against the Company, protest, notice and all demands whatsoever
and covenants that this Subsidiary Guarantee will not be discharged except by complete performance
of the obligations contained in the Notes, this Indenture and in the Subsidiary Guarantee. If any
Holder or the Trustee is required by any court or otherwise to return to the Company, any
Subsidiary Guarantor, or any custodian, trustee, liquidator or other similar official acting in
relation to the Company or any Subsidiary Guarantor, any amount paid by the Company or any
Subsidiary Guarantor to the Trustee or such Holder, the Subsidiary Guarantee, to the extent
theretofore discharged, shall be reinstated in full force and effect. Each Subsidiary Guarantor
further agrees that, as between each Subsidiary Guarantor, on the one hand, and the Holders and the
Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby may be
accelerated as provided in Article Six for the purposes of this Subsidiary Guarantee, and (y) in
the event of any acceleration of such obligations as provided in Article Six, such obligations
(whether or not due and payable) shall forthwith become due and payable by each Subsidiary
Guarantor for the purpose of this Subsidiary Guarantee.

          SECTION 10.02. Release of a Subsidiary Guarantor.

          In the event (i) all or substantially all of the assets, or all of the Capital Stock, of a
Subsidiary Guarantor is sold by the Company and such transaction complies with Section 4.16, or
(ii) of the consolidation or merger of a Subsidiary Guarantor with or into any Person in compliance
with Section 10.04, or (iii) of any transaction complying with the provisions relating to the
release of a Subsidiary Guarantee under Section 4.14(b), or (iv) of the designation of any
Subsidiary Guarantor as an Unrestricted Subsidiary in accordance with this Indenture, the
Subsidiary Guarantee of such Subsidiary Guarantor will be released. Furthermore, upon the
occurrence of Legal Defeasance, Covenant Defeasance or Satisfaction and

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Discharge in accordance with Article Eight, each Subsidiary Guarantor shall be released from
its Subsidiary Guarantee.

          The Trustee shall promptly deliver an appropriate instrument evidencing such release upon
receipt of a request by the Company accompanied by an Officers’ Certificate certifying as to the
compliance with this Section 10.02. Any Subsidiary Guarantor not so released remains liable for
the full amount of principal of and interest on the Notes as provided in this Article Ten.

          SECTION 10.03. Limitation of Subsidiary Guarantor’s Liability.

          Each Subsidiary Guarantor and by its acceptance hereof each of the Holders hereby confirms
that it is the intention of all such parties that the guarantee by such Subsidiary Guarantor
pursuant to its Subsidiary Guarantee not constitute a fraudulent transfer or conveyance for
purposes of any Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar Federal or state law. To effectuate the foregoing intention, the
Holders and such Subsidiary Guarantor hereby irrevocably agree that the obligations of such
Subsidiary Guarantor under the Subsidiary Guarantee shall be limited to the maximum amount as will,
after giving effect to all other contingent and fixed liabilities of such Subsidiary Guarantor and
after giving effect to any collections from or payments made by or on behalf of any other
Subsidiary Guarantor in respect of the obligations of such other Subsidiary Guarantor under its
Subsidiary Guarantee or pursuant to Section 10.05, result in the obligations of such Subsidiary
Guarantor under the Subsidiary Guarantee not constituting such fraudulent transfer or conveyance.

          SECTION 10.04. Subsidiary Guarantors May Consolidate, etc., on Certain Terms.

          No Subsidiary Guarantor (other than any Subsidiary Guarantor whose Subsidiary Guarantee is to
be released in accordance with the terms of the Subsidiary Guarantee and this Indenture in
connection with any transaction complying with Section 4.16 or the provisions relating to the
release of a Subsidiary Guarantee under Section 4.14) will, and the Company will not cause or
permit any Subsidiary Guarantor to, consolidate with or merge with or into any Person other than
the Company or any other Subsidiary Guarantor unless:

     (1) the entity formed by or surviving any such consolidation or merger (if other than
the Subsidiary Guarantor) or to which such sale, lease, conveyance or other disposition
shall have been made is a corporation organized and existing under the laws of the United
States or any State thereof or the District of Columbia;

     (2) such entity assumes (a) by supplemental indenture all of the obligations of the
Subsidiary Guarantor on the Subsidiary Guarantee and (b) in the case where such
consolidation or merger involved Laundry Corp. and Laundry Corp. was not the

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surviving entity, by amendment, supplement or other instrument (in form and substance
reasonably satisfactory to the Trustee and the Collateral Agent), executed and delivered to
the Trustee and the Collateral Agent, all Obligations of Laundry Corp. under the Collateral
Agreements, and in connection therewith shall cause such instruments to be filed and
recorded in such jurisdictions and take such other actions as may be required by applicable
law to perfect or continue the perfection of the Lien created under the Collateral
Agreements on the Collateral owned by or transferred to such surviving entity;

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

     (4) immediately after giving effect to such transaction and the use of any net proceeds
therefrom on a pro forma basis, the Company could satisfy the provisions of Section
5.01(a)(ii).

          Any merger or consolidation of (i) a Subsidiary Guarantor with and into the Company (with the
Company being the surviving entity) or another Subsidiary Guarantor or (ii) a Subsidiary Guarantor
or the Company with an Affiliate organized solely for the purpose of reincorporating such
Subsidiary Guarantor or the Company in another jurisdiction in the United States or any state
thereof or the District of Columbia need only comply with (A) clause (a)(iv) of Section 5.01, and
(B) in the case of a merger or consolidation involving (x) the Company as described in clause (ii)
of this paragraph, clause (a)(i)(2)(y) of Section 5.01 and (y) a Subsidiary Guarantor as described
in clause (ii) of this paragraph, clause (2) of this Section 10.04.

          SECTION 10.05. Contribution.

          In order to provide for just and equitable contribution among the Subsidiary Guarantors, the
Subsidiary Guarantors agree, inter se, that each Subsidiary Guarantor that makes a payment or
distribution under a Subsidiary Guarantee shall be entitled to a pro rata contribution from each
other Subsidiary Guarantor hereunder based on the net assets of each other Subsidiary Guarantor.
The preceding sentence shall in no way affect the rights of the Holders of Notes to the benefits of
this Indenture, the Notes or the Subsidiary Guarantees.

          SECTION 10.06. Waiver of Subrogation.

          Each Subsidiary Guarantor agrees that it shall not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until payment in full of
all obligations guaranteed hereby.

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          SECTION 10.07. Evidence of Guarantee.

          To evidence their guarantees to the Holders set forth in this Article Ten, each of the
Subsidiary Guarantors hereby agrees to execute the notation of Subsidiary Guarantee in
substantially the form included in the Notes attached hereto as Exhibits A and B.
Each such notation of Subsidiary Guarantee shall be signed on behalf of each Subsidiary Guarantor
by an Officer or an assistant Secretary.

          Each Subsidiary Guarantor hereby agrees that its Subsidiary Guarantee set forth in Section
10.01 shall remain in full force and effect notwithstanding any failure to endorse on each Note a
notation of such Subsidiary Guarantee.

          If an Officer or assistant Secretary whose signature is on this Indenture or on the Subsidiary
Guarantee no longer holds that office at the time the Trustee authenticates the Note on which a
Subsidiary Guarantee is endorsed, the Subsidiary Guarantee shall be valid nevertheless.

          The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of the Subsidiary Guarantee set forth in this Indenture on behalf of the
Subsidiary Guarantors.

          SECTION 10.08. Waiver of Stay, Extension or Usury Laws.

          Each Subsidiary Guarantor covenants that it will not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury
law or other law that would prohibit or forgive such Subsidiary Guarantor from performing its
Subsidiary Guarantee as contemplated herein, wherever enacted, now or at any time hereafter in
force, or which may affect the covenants or the performance of this Indenture; and each Subsidiary
Guarantor hereby expressly waives all benefit or advantage of any such law, and covenants that it
will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law had been enacted.

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ARTICLE ELEVEN

COLLATERAL AND COLLATERAL AGREEMENTS

          SECTION 11.01. Approval of Collateral Agreements; Representations and Warranties; No
Preference Among Holders.

          (a) So long as the Liens under the Collateral Agreements shall not have been released pursuant
to Section 11.06(a)(i), (ii) or (iii), the due and punctual payment of the principal of and premium
(if any) and interest on the Notes when and as the same shall be due and payable, whether on an
interest payment date, at maturity, by acceleration, repurchase, redemption, special redemption or
otherwise, and interest on the overdue principal of and premium (if any) and interest on the Notes
and performance of all other Obligations of the Company and Laundry Corp. to the Collateral Agent,
the Holders and the Trustee under this Indenture, the Notes and the Subsidiary Guarantee of Laundry
Corp. according to the terms hereunder or thereunder, shall be secured by Note Liens on the
Collateral to the extent and with the effect provided herein and in the Collateral Agreements,
including any Mortgage required pursuant to Section 4.26.

          (b) By its acceptance of its Notes and the Subsidiary Guarantees, each Holder, the Collateral
Agent and the Trustee consents and agrees (i) upon the occurrence of the Merger Event (x) the Lien
on the assets of the surviving entity securing the Obligations represented thereby shall be
released and (y) to the extent the Liens under the Collateral Agreements shall not have been
released pursuant to Section 11.06(a)(i), (ii) or (iii), the only security for the Notes following
the Merger Event will be a second priority Lien on the Post-Merger Event Collateral and (ii) to the
substance of the terms and provisions of the Collateral Agreements and the Intercreditor Agreement
in the forms attached hereto (including, without limitation, the provisions providing for
foreclosure and release of Collateral) as the same may be in effect on the Issue Date or amended
from time to time in accordance with their terms (with such changes as are required by applicable
Legal Requirements in the relevant jurisdiction or jurisdictions on any such date). Each Holder
and the Trustee appoints the Collateral Agent to act as its collateral agent with respect to the
Collateral and further authorizes and directs the Collateral Agent to enter into each Collateral
Agreement and the Intercreditor Agreement and to perform its obligations and exercise its rights
thereunder in accordance therewith.

          (c) The Company represents, covenants and agrees that it and Laundry Corp. have, and shall at
all times have, full right, power and lawful authority to grant, bargain, sell, release, convey,
hypothecate, assign, mortgage, pledge, transfer and confirm the property constituting the
Collateral from time to time pursuant to the Collateral Agreements to which such Persons are party,
free and clear of all Liens other than Permitted Liens. The Company agrees that it shall, and
shall cause Laundry Corp. to, (i) forever warrant and defend the title

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to the same against the claims of all Persons (except as to Permitted Liens) and (ii) execute,
acknowledge and deliver to the Collateral Agent such further assignments, transfers, assurances or
other instruments as the Collateral Agent may reasonably require and perform all such acts as may
be required by the Collateral Agent to confirm to the Collateral Agent such Lien on the Collateral,
or any part thereof, as from time to time constituted, so as to render the same available for the
security and benefit of the Collateral Agent, the Trustee and the Holders under the Collateral
Agreements, this Indenture, the Notes and the Subsidiary Guarantee of Laundry Corp. according to
the intent and purposes herein and therein expressed. The Company further represents, covenants
and agrees that each Collateral Agreement, when delivered, registered, recorded and filed as
provided in Section 11.02(c), will create valid and perfected Liens (subject to Permitted Liens) on
the Collateral subject thereto.

          (d) As among the Holders, the Collateral as constituted from time to time shall be held for
the equal and ratable benefit of the Holders without preference, priority or distinction of any
Holder over any other Holder by reason of differences in time of issuance of the Notes held by such
Holders, sale or otherwise, as security for the Obligations of the Company and Laundry Corp., to
the Collateral Agent, the Holders and the Trustee under this Indenture, the Notes and the
Subsidiary Guarantee of Laundry Corp.

          SECTION 11.02. Documentation and Recording; Opinions of Counsel; Further Assurances.

          (a) So long as the Liens under the Collateral Agreements shall not have been released pursuant
to Section 11.06(a)(i), (ii) or (iii), the Company and Laundry Corp. shall execute and comply with
the terms of each Collateral Agreement.

          (b) Concurrent with the consummation of the Merger Event, the surviving entity thereof shall,
at its own expense, deliver or cause to be delivered to the Collateral Agent (with a copy to the
Trustee):

     (i) an Officers’ Certificate stating that the Merger Event has occurred, and confirming
that all actions required to be taken under this clause (b) to create and perfect the
Post-Merger Event Lien on the Post-Merger Event Collateral in accordance with the
requirements hereof and of the Post-Merger Event Pledge Agreement (other than the execution
and delivery by the Collateral Agent of the Post-Merger Event Pledge Agreement) have been
taken;

     (ii) an Opinion of Counsel stating that, in the opinion of such counsel, all
recordings, filings and other actions necessary to create and perfect such Post-Merger Event
Lien have been taken;

     (iii) two originally executed copies of the Post-Merger Event Pledge Agreement (which
upon its receipt thereof by the Collateral Agent, shall in each case

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be executed by the Collateral Agent, and one fully executed copy thereof shall be
delivered by the Collateral Agent to the surviving entity of the Merger Event), together
with (A) all certificated securities (as defined in the Uniform Commercial Code as in effect
in the State of New York on the date thereof) constituting Post-Merger Event Collateral
thereunder and stock powers or other instruments of transfer executed in blank by the
surviving entity of the Merger Event and (B) an issuer acknowledgement, substantially in the
form of Exhibit 2 to the Post-Merger Event Pledge Agreement, duly executed by each issuer of
uncertificated securities (as defined in the Uniform Commercial Code as in effect in the
State of New York on the date thereof) constituting Post-Merger Event Collateral thereunder;
and

     (iv) a copy of a UCC-1 financing statement listing the surviving entity of the Merger
Event, as debtor, and the Collateral Agent, as secured party, and describing the Post-Merger
Event Collateral as the “collateral” covered thereby that shall have been filed in such
filing office as shall be necessary to perfect the Post-Merger Event Lien on the Post-Merger
Event Collateral;

provided, however, that in connection with the execution and delivery of the
Post-Merger Event Pledge Agreement, the Post-Merger Liens shall be subject to any Permitted Lien
and not in limitation but in furtherance thereof, the Collateral Agent shall execute a replacement
Intercreditor Agreement (or an amendment to the existing Intercreditor Agreement) as requested by
the Credit Agreement Collateral Agent to the extent necessary to subordinate the Post-Merger Liens
to the Liens in favor of the Credit Agreement Collateral Agent to the same extent provided under
the Intercreditor Agreement as in effect immediately prior to the Merger Event.

          (c) Notwithstanding anything else to the contrary herein, the surviving entity of the Merger
Event shall not be required to fulfill its obligations under Section 5.01(a)(i)(2)(y)(B) if it
shall have fulfilled its obligations under clause (b) above.

          (d) The Company shall deliver or cause to be delivered to the Collateral Agent and the Trustee
on or immediately prior to each anniversary of the Issue Date, an Opinion or Opinions of Counsel,
dated as of such date, either stating that, in the opinion of such counsel, such action has been
taken with respect to the recording, registering, filing, re-recording, re-registering and
re-filing of (x) this Indenture, the Collateral Agreements and all supplemental indentures and
amendments thereto, and (y) financing statements, continuation statements, fixture filings or other
instruments of further assurance, as is necessary to maintain the Lien created by each such
Collateral Agreement and reciting the details of such action or referring to prior Opinions of
Counsel in which such details are given, and stating that all financing statements and continuation
statements have been executed and filed that are necessary to perfect such Lien, or stating that,
in the opinion of such counsel, no such action is necessary to maintain such Lien.

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          (e) Concurrently with delivery of the Opinion or Opinions of Counsel referred to in paragraph
(d) of this Section 11.02, the Company shall cause this Indenture and each Collateral Agreement,
and all amendments or supplements thereto, to be registered, recorded and filed and/or re-recorded
and/or re-filed and/or renewed in such manner and in such place or places, if any, as may be
necessary or reasonably required by the Collateral Agent in order to perfect the Liens.

          (f) If, at any time, the Collateral Agreements do not create the Liens required by or
otherwise do not comply with this Section 11.02, the Company and Laundry Corp. shall, as soon as
reasonably practicable and from time to time, at the Company’s expense, (i) execute and deliver,
and file and record with all applicable Authorities, such additional Collateral Agreements, (ii)
use its reasonable best efforts to obtain any approvals or consents and remove any restrictions or
encumbrances and (iii) take such other steps, as in each case may be necessary such that all
Collateral is at all times subject to the Liens required by and otherwise complies with this
Section 11.02.

          SECTION 11.03. Possession of the Collateral.

          (a) The Company may possess, manage, operate and enjoy the Collateral in accordance with the
terms of this Indenture, the Notes, the Subsidiary Guarantees, and the Collateral Agreements and
the Intercreditor Agreement.

          (b) Subject to any continuing requirements of the Intercreditor Agreement, all amounts
received by the Collateral Agent as proceeds of any part of the Collateral (including Net Cash
Proceeds in the case of an Asset Sale) and all amounts of money, securities, letters of credit and
other evidences of indebtedness deposited with or held by the Collateral Agent in accordance with
this Indenture and any Collateral Agreement shall be held by the Collateral Agent as security for
the Obligations of the Company and Laundry Corp. under this Indenture, the Notes, the Subsidiary
Guarantees, if any, and the Collateral Agreements until applied in accordance with the terms of
this Indenture, the Collateral Agreements or the Credit Agreement, as applicable.

          SECTION 11.04. Suits To Protect the Collateral.

          Subject to any continuing requirements of the Intercreditor Agreement, the Collateral Agent
shall have power to institute in its name and to maintain such suits and proceedings as it may deem
expedient to prevent any impairment of the Collateral by any acts which may be unlawful or in
violation of this Indenture or any of the Collateral Agreements, and such suits and proceedings as
the Collateral Agent may deem expedient to preserve or protect its interests and the interests of
itself, the Trustee and the Holders in the Collateral and in the principal, interest, issues,
profits, rents, revenues and other income arising therefrom, including power to institute and
maintain suits or proceedings to restrain the enforcement of or compliance with any legislative or
other governmental enactment, rule or order that may be

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unconstitutional or otherwise invalid, if the enforcement of, or compliance with, such
enactment, rule or order would impair the security hereunder or under any of the Collateral
Agreements, or be prejudicial to the interests of the Collateral Agent, the Holders or the Trustee.

          SECTION 11.05. Release of Liens.

          (a) The Collateral Agent shall not at any time release Collateral from the Liens created by
this Indenture and the Collateral Agreements unless such release is in accordance with the
provisions of this Indenture and the Collateral Agreements.

          (b) The release of any Collateral from the Lien of the Collateral Agreements shall not be
deemed to impair the security under this Indenture in contravention of the provisions hereof if and
to the extent the Collateral is released pursuant to this Indenture and the Collateral Agreements.
To the extent applicable, the Company shall comply with TIA § 314(c) and § 314(d) relating to the
release of property from the Lien of the Collateral Agreements and relating to the substitution
therefor of any property to be subjected to the Lien of the Collateral Agreements. Any certificate
or opinion required by TIA § 314(c) or § 314(d) may be made by an Officer of the Company, except in
cases where TIA § 314(c) or § 314(d) requires that such certificate or opinion be made by an
independent person, which person shall be an independent engineer, appraiser or other expert
selected by the Company.

          SECTION 11.06. Specified Releases of Collateral.

          (a) The Liens created by the Collateral Agreements shall automatically be released:

     (i) upon payment in full of all principal, premium, if any, and interest on the Notes
and of all other obligations for the payment of money due and owing to the Collateral Agent,
the Trustee or the Holders under this Indenture, the Notes, the Subsidiary Guarantees, if
any, and the Collateral Agreements;

     (ii) upon a Satisfaction and Discharge in accordance with Article Eight;

     (iii) upon a Legal Defeasance or Covenant Defeasance in accordance with Article Eight;
or

     (iv) following the occurrence of the Merger Event (other than the Post-Merger Event
Liens on the Post-Merger Event Collateral that arise as a result of compliance by the
surviving entity of the Merger Event with its obligations under Section 11.02(b)).

Upon payment specified in clause (i) above, or upon delivery by the Company to the Collateral Agent
of an Officers’ Certificate and an Opinion of Counsel, each to the effect that at

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least one of such conditions precedent (other than the condition precedent set forth in clause (iv)
above) has been complied with (and which may be the same Officers’ Certificate and Opinion of
Counsel required by Article Eight), together with such documentation, if any, as may be required by
the TIA (including, without limitation, TIA § 314(c) or § 314(d)) or reasonably required by the
Collateral Agent prior to the release of such Collateral, the Collateral Agent shall forthwith take
all action that is necessary or reasonably requested by the Company (in each case at the expense of
the Company) to release and reconvey to the Company without recourse, representation or warranty of
any kind all of the Collateral, and shall deliver such Collateral in its possession to the Company
and shall execute and deliver to the Company releases and satisfactions with respect to such
released Collateral, in recordable or fileable form, to the extent reasonably requested by the
Company.

          (b) In addition to paragraph (a) above, the Liens on the Collateral will be automatically
released with respect to any asset constituting Collateral:

     (i) that is sold or otherwise disposed of by the Company or Laundry Corp. to a Person
other than the Company or Laundry Corp. in a transaction not prohibited by this Indenture at
the time of such sale or disposition; or

     (ii) other than as described in paragraph (a) above, that is released from its Lien in
accordance with the Credit Agreement and in accordance with the Intercreditor Agreement
(whether pursuant to a foreclosure or other exercise of remedies by the secured parties
under the Credit Agreement or otherwise); or

     (iii) to the extent permitted by the Credit Agreement, if the Company or Laundry Corp.
provides substitute assets with at least an equivalent fair value, as determined in good
faith by the Board of Directors of the Company, and such assets are made subject to the Lien
in accordance with the Collateral Agreements.

          SECTION 11.07. Sharing of Collateral.

          Subject to the terms of this Indenture and the Collateral Agreements, any Collateral securing
this Indenture, the Notes and the Subsidiary Guarantee of Laundry Corp., if any, may be shared by
any other Indebtedness of the Company and Laundry Corp., including Additional Notes issued under
this Indenture, incurred after the Issue Date so long as such Indebtedness is incurred in
accordance with this Indenture, including Section 4.12, and the Lien thereon constitutes a
Permitted Lien.

          SECTION 11.08. Sufficiency of Release.

          All purchasers and grantees of any property or rights purporting to be released in accordance
herewith shall be entitled to rely upon any release executed by the Collateral Agent hereunder as
sufficient for the purpose of this Indenture and as constituting a good and

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valid release of the property therein described from the Lien of this Indenture and of the
Collateral Agreements.

          SECTION 11.09. Actions by the Collateral Agent.

          Subject to the provisions of the Collateral Agreements and Article Eight, the Collateral Agent
may in its sole discretion and without the consent of the Trustee or the Holders take all actions
it deems necessary or appropriate in order to (i) enforce any of the terms of the Collateral
Agreements and (ii) collect and receive all amounts payable in respect of the obligations of the
Company and any Restricted Subsidiaries under the Collateral Agreements and this Indenture. The
Collateral Agent shall have the power to institute and maintain such suits and proceedings as it
may deem expedient in order to prevent any impairment of the Collateral by any act that may be
unlawful or in violation of this Indenture or the Collateral Agreements, and such suits and
proceedings as the Collateral Agent may deem expedient to preserve or protect its interests and
those of the Trustee and the Holders in the Collateral. No duty beyond that set forth in Section
7.01 is imposed on the Collateral Agent pursuant to this Section 11.09. Each Holder hereby
authorizes the Collateral Agent and the Trustee to enter into the Collateral Agreements and the
Intercreditor Agreement.

          SECTION 11.10. Intercreditor Agreement.

          This Article Eleven and the Collateral Agreements are subject to the terms, limitations and
conditions set forth in the Intercreditor Agreement.

ARTICLE TWELVE

MISCELLANEOUS

          SECTION 12.01. TIA Controls.

          If any provision of this Indenture limits, qualifies, or conflicts with another provision
which is required to be included in this Indenture by the TIA, the required provision shall
control.

          SECTION 12.02. Notices.

          Any notices or other communications required or permitted hereunder shall be in writing, and
shall be sufficiently given if made by hand delivery, by telex, by telecopier or registered or
certified mail, postage prepaid, return receipt requested, addressed as follows:

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	   	if to the Company:
	 
	   	Coinmach Service Corp.

303 Sunnyside Boulevard, Suite 70

Plainview, New York 11803

Attn: Chief Executive Officer

Facsimile Number: (516) 349-9125
	 
	   	if to the Trustee:
	 
	   	The Bank of New York

101 Barclay Street

Floor 8W

New York, New York 10286

Attn: Corporate Trust Administration

Facsimile Number: (212) 815-5707

          Each of the Company and the Trustee by written notice to each other such Person may designate
additional or different addresses for notices to such Person. Any notice or communication to the
Company or the Trustee shall be deemed to have been given or made as of the date so delivered if
personally delivered; when receipt is acknowledged, if faxed; and five (5) calendar days after
mailing if sent by registered or certified mail, postage prepaid (except that a notice of change of
address shall not be deemed to have been given until actually received by the addressee).

          Any notice or communication mailed to a Holder shall be mailed to such Holder by first class
mail or other equivalent means at such Holder’s address as it appears on the registration books of
the Registrar and shall be sufficiently given to such Holder if so mailed within the time
prescribed.

          Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. If a notice or communication is mailed in the manner
provided above, it is duly given, whether or not the addressee receives it.

          SECTION 12.03. Communications by Holders with Other Holders.

          Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to their
rights under this Indenture or the Notes. The Company, the Trustee, the Registrar and any other
Person shall have the protection of TIA § 312(c).

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          SECTION 12.04. Certificate and Opinion as to Conditions Precedent.

          Upon any request or application by the Company to the Trustee to take any action under this
Indenture, the Company shall furnish to the Trustee upon request:

     (1) an Officers’ Certificate, in form and substance reasonably satisfactory to the
Trustee, stating that, in the opinion of the signers, all conditions precedent to be
performed by the Company, if any, provided for in this Indenture relating to the proposed
action have been satisfied; and

     (2) an Opinion of Counsel stating that, in the opinion of such counsel, subject to
customary assumptions and exclusions, all such conditions precedent to be performed by the
Company, if any, provided for in this Indenture relating to the proposed action have been
satisfied.

          SECTION 12.05. Statements Required in Certificate or Opinion.

          Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture, other than the Officers’ Certificate required by Section 4.06, shall
include:

     (1) a statement that the Person making such certificate or opinion has read such
covenant or condition;

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

     (3) a statement that, in the opinion of such Person, he has made such examination or
investigation as is reasonably necessary to enable him to express an informed opinion as to
whether or not such covenant or condition has been satisfied; and

     (4) a statement as to whether or not, in the opinion of each such Person, such
condition or covenant has been complied with; provided that an Opinion of Counsel
may rely on an Officers’ Certificate or a certificate of public officials with respect to
matters of fact.

          SECTION 12.06. Rules by Trustee, Paying Agent, Registrar.

          The Trustee may make reasonable rules in accordance with the Trustee’s customary practices for
action by or at a meeting of Holders. The Paying Agent or Registrar may make reasonable rules for
its functions.

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          SECTION 12.07. Legal Holidays.

          “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in
New York, New York or at such place of payment are not required to be open. If a payment date is a
Legal Holiday at any particular place of payment, payment may be made at such place on the next
succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening
period.

          SECTION 12.08. Governing Law.

          THIS INDENTURE, THE NOTES AND THE GUARANTEES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE
OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS. EACH OF THE PARTIES HERETO AGREES
TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS INDENTURE.

          SECTION 12.09. No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret another indenture, loan or debt agreement of the
Company or any of its Subsidiaries. Any such indenture, loan or debt agreement may not be used to
interpret this Indenture.

          SECTION 12.10. No Recourse Against Others.

          A past, present or future director, officer, employee, incorporator or stockholder, as such,
of the Company or of the Trustee shall not have any liability for any obligations of the Company
under the Notes or this Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. Each Holder by accepting a Note waives and releases all such
liability. Such waiver and release are part of the consideration of the Notes.

          SECTION 12.11. Successors.

          All agreements of the Company and the Subsidiary Guarantors in this Indenture, the Notes, and
the Subsidiary Guarantees shall bind its successors. All agreements of the Trustee in this
Indenture shall bind its successors.

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          SECTION 12.12. Duplicate Originals.

          All parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together shall represent the same agreement.

          SECTION 12.13. Severability.

          In case any one or more of the provisions in this Indenture, the Notes or in the Subsidiary
Guarantees shall be held invalid, illegal or unenforceable, in any respect for any reason, the
validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions shall not in any way be affected or impaired thereby, it being intended that
all of the provisions hereof shall be enforceable to the full extent permitted by law.

          SECTION 12.14. Force Majeure.

          In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

[Signature page follows.]

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SIGNATURES

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, all as
of the date first written above.

	 	 	 	 	 
	 	COINMACH SERVICE CORP.

 	 
	 	By:  	/s/ Robert M. Doyle
 	 
	 	 	Name:  	Robert M. Doyle 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	COINMACH LAUNDRY CORPORATION,

as a Subsidiary Guarantor

 	 
	 	By:  	/s/ Robert M. Doyle
 	 
	 	 	Name:  	Robert M. Doyle 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK, as Trustee and Collateral

Agent

 	 
	 	By:  	/s/ Julie Salovitch-Miller
 	 
	 	 	Name:  	Julie Salovitch-Miller 	 
	 	 	Title:  	Vice President 	 

S-1

 

	 	 	 	 	 

EXHIBIT A

FORM OF UNRESTRICTED NOTE

[THE COMPANY MAY SUBSEQUENTLY ISSUE NOTES THAT ARE IDENTICAL IN ALL MATERIAL RESPECTS TO THIS NOTE
BUT HAVE ORIGINAL ISSUE DISCOUNT. IN SUCH CASE, THE HOLDER OF THIS NOTE WILL BE DEEMED TO HAVE
EXCHANGED A PORTION OF ITS NOTES OF THE COMPANY FOR SUCH NEWLY ISSUED NOTES WITH ORIGINAL ISSUE
DISCOUNT. THE AGGREGATE PRINCIPAL AMOUNT OF NOTES OWNED BY SUCH HOLDER, HOWEVER, WILL NOT CHANGE
AS A RESULT OF SUCH DEEMED EXCHANGE. WITH RESPECT TO SUCH NEWLY ISSUED NOTES WITH ORIGINAL ISSUE
DISCOUNT, A HOLDER MAY OBTAIN THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE, THE ISSUE
PRICE AND THE YIELD TO MATURITY BY SUBMITTING A WRITTEN REQUEST TO THE COMPANY.]

CUSIP No.:

COINMACH SERVICE CORP.

11% SENIOR SECURED NOTE DUE 2024

	 	 	 	 	 
	No.

	 	 	$	 

          COINMACH SERVICE CORP., a Delaware corporation (the “Company,” which term includes any
successor entity), for value received promises to pay to or registered assigns,
the principal sum of [ ] Dollars on December 1, 2024.

          Interest Payment Dates: March 1, June 1, September 1 and December 1.

          Record Dates: February 25, May 25, August 25 and November 25.

          Reference is made to the further provisions of this Note contained herein, which will for all
purposes have the same effect as if set forth at this place.

A-1

 

          IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by
its duly authorized officers and a facsimile of its corporate seal to be affixed hereto or
imprinted hereon.

	 	 	 	 	 
	 	COINMACH SERVICE CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated:

A-2

 

Certificate of Authentication

          This is one of the 11% Senior Secured Notes due 2024 referred to in the within-mentioned
Indenture.

                                                                                                                   THE BANK OF NEW YORK, as Trustee

Dated:                                                              
                    
                    
By:                                                                                  

                    
                    
                    
                    
                    
                    Authorized Signatory

A-3

 

(REVERSE OF UNRESTRICTED NOTE)

11% Senior Secured Note due 2024

          1. Interest. COINMACH SERVICE CORP., a Delaware corporation (the “Company”),
promises to pay interest on the principal amount of this Note at the rate per annum shown above.
Interest on the Notes will accrue from the most recent date on which interest has been paid on this
Note or if no interest has been paid, from [           ], 20[ ]. The Company will pay
interest quarterly in arrears on each Interest Payment Date,
commencing [           ], 20[
]. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months.

          2. Method of Payment. The Company shall pay interest on the Notes to the Persons who
are the registered Holders at the close of business on the Record Date immediately preceding the
Interest Payment Date even if the Notes are cancelled on registration of transfer or registration
of exchange after such Record Date. Holders must surrender Notes to a Paying Agent to collect
principal payments. The Company shall pay principal and interest in money of the United States
that at the time of payment is legal tender for payment of public and private debts (“U.S.
Legal Tender”). However, the Company may pay principal and interest by its check payable in
such U.S. Legal Tender. The Company may deliver any such interest payment to the Paying Agent or
to a Holder at the Holder’s registered address.

          3. Paying Agent and Registrar. Initially, The Bank of New York (the
“Trustee”) will act as Paying Agent and Registrar. The Company may change any Paying
Agent, Registrar or co-Registrar without notice to the Holders.

          4. Indenture. The Company issued the Notes and Laundry Corp. issued its Subsidiary
Guarantee under an Indenture, dated as of November 24, 2004 (the “Indenture”), between the
Company, the Subsidiary Guarantors party thereto from time to time, the Trustee and the Collateral
Agent. Capitalized terms herein are used as defined in the Indenture unless otherwise defined
herein. The terms of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the
“TIA”), as in effect on the date on which the Indenture is qualified under the TIA.
Notwithstanding anything to the contrary herein, the Notes are subject to all such terms, and
Holders of Notes are referred to the Indenture and the TIA for a statement of them. The Notes are
general secured obligations of the Company. Each Holder, by accepting a Note, agrees to be bound
by all of the terms and provisions of the Indenture, as the same may be amended from time to time.

A-4

 

          5. Optional Redemption; Sinking Fund.

          (a) Make-Whole Redemption. At any time prior to December 1, 2009, the Company may, at
its option, redeem all or part of the Notes upon not less than 30 nor more than 60 days’ notice, at
a Redemption Price equal to the sum of the present values of the redemption price of such Notes at
the first optional Redemption Date described below and all required interest payments, excluding
accrued but unpaid interest, due on such Notes through such first optional Redemption Date,
discounted to the date of such redemption on a quarterly basis, assuming 360-day years consisting
of twelve 30-day months, at the Treasury Rate plus 50 basis points, plus accrued and unpaid
interest to the Redemption Date, subject to the right of Holders of record on the relevant Record
Date to receive interest due on the relevant Interest Payment Date.

          (b) Redemption at Scheduled Prices. On or after December 1, 2009, the Company may, at
its option, redeem all or part of the Notes, upon not less than 30 nor more than 60 days’ notice,
at the Redemption Prices, expressed as percentages of principal amount set forth below plus accrued
and unpaid interest, on the Notes redeemed, to the applicable Redemption Date, if redeemed during
the twelve-month period beginning on December 1 of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage	 
	2009
	 	 	105.500	%
	2010
	 	 	103.667	%
	2011
	 	 	101.833	%
	2012 and thereafter
	 	 	100.000	%

          (c) Tax Redemption. At any time, the Company may, at its option, redeem all, but not
part, of the Notes, upon not less than 30 nor more than 60 days’ notice, at a Redemption Price
equal to 100% of the principal amount of the Notes plus accrued and unpaid interest to the
Redemption Date if, for U.S. federal income tax purposes, the Company is not, or would not be,
permitted to deduct the interest payable on the Notes from its income.

          (d) Sinking Fund. As a mandatory sinking fund (the “Sinking Fund”), the
Company will redeem on December 1 of each of the years 2016 to 2019, inclusive, Notes in an
aggregate principal amount equal to 10% of the aggregate principal amount of the Notes originally
issued under the Indenture at a Redemption Price equal to 100% of the aggregate principal amount of
the Notes to be redeemed, together with accrued and unpaid interest to the Redemption Date. The
Company may, at its option, credit against the aggregate principal amount of the Notes to be
redeemed in connection with any Sinking Fund redemption (to the extent not previously credited) the
aggregate principal amount of Notes:

A-5

 

	 	(i)  	previously or contemporaneously redeemed by it pursuant to the
provisions described under paragraph (a), (b) or (c) (or previously or
contemporaneously called for redemption pursuant to such provisions so long as
the Redemption Price therefor shall have been deposited in trust for that
purpose in accordance with the Indenture); and
	 
	 	(ii)  	previously or contemporaneously acquired by it (and delivered
to the Trustee for cancellation), whether by privately negotiated transactions,
by way of tender offers (including Change of Control Offers and Net Proceeds
Offers) or otherwise,

in either case described in clauses (i) and (ii) above other than through mandatory Sinking Fund
redemptions; provided, however, that the Company may only credit purchases of
separate notes pursuant to clause (ii) above to the extent that, as of the Business Day immediately
preceding the date on which a Sinking Fund redemption is required, such purchases did not result in
the aggregate principal amount of Notes underlying IDSs exceeding 90% of the aggregate principal
amount of all Notes outstanding on such date.

          6. Notice of Redemption. Notice of redemption will be mailed at least 30 days but not
more than 60 days before the Redemption Date to each Holder of Notes to be redeemed at such
Holder’s registered address.

          Except as set forth in the Indenture, if monies for the redemption of the Notes called for
redemption shall have been deposited with the Paying Agent for redemption on such Redemption Date,
then, unless the Company defaults in the payment of such Redemption Price plus accrued interest, if
any, the Notes called for redemption will cease to bear interest from and after such Redemption
Date and the only right of the Holders of such Notes will be to receive payment of the Redemption
Price plus accrued interest, if any.

          7. Offers to Purchase. Sections 4.15 and 4.16 of the Indenture provide that, after
certain Asset Sales (as defined in the Indenture) and upon the occurrence of a Change of Control
(as defined in the Indenture), and subject to further limitations contained therein, the Company
will make an offer to purchase certain amounts of the Notes in accordance with the procedures set
forth in the Indenture.

          8. Transfer; Exchange. The Notes are in registered form without coupons. A Holder
shall register the transfer of or exchange of Notes in accordance with the Indenture. The
Registrar may require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and to pay certain transfer taxes or similar governmental charges payable in
connection therewith as permitted by the Indenture. The Registrar need not register the transfer
of or exchange of any Notes or portions thereof selected for redemption (except, in the case of a
Note to be redeemed in part, the portion of the Note not to be redeemed) or to

A-6

 

transfer or exchange any Notes for a period of 15 days prior to a selection of Notes to be
redeemed.

          9. Persons Deemed Owners. The registered Holder of a Note shall be treated as the
owner of it for all purposes.

          10. Unclaimed Money. If money for the payment of principal or interest remains
unclaimed for two years, the Trustee and the Paying Agent will pay the money back to the Company.
After that, all liability of the Trustee and such Paying Agent with respect to such money shall
cease.

          11. Discharge Prior to Redemption or Maturity. If the Company at any time deposits
with the Trustee U.S. Legal Tender or U.S. Government Obligations sufficient to pay the principal
of and interest on the Notes to redemption or maturity and complies with the other provisions of
the Indenture relating thereto, the Company will be discharged from certain provisions of the
Indenture, the Notes and the Collateral Agreements (including certain covenants, but excluding its
obligation to pay the principal of and interest on the Notes).

          12. Amendment; Supplement; Waiver. Subject to certain exceptions, the Indenture, the
Notes or the Subsidiary Guarantees may be amended or supplemented with the written consent of the
Holders of at least a majority in aggregate principal amount of the Notes then outstanding, and any
existing Default or Event of Default or noncompliance with any provision may be waived with the
written consent of the Holders of a majority in aggregate principal amount of the Notes then
outstanding. Without notice to or consent of any Holder, the parties thereto may amend or
supplement the Indenture, the Notes or the Subsidiary Guarantees to, among other things, cure any
ambiguity, defect or inconsistency, provide for certificated Notes or Subsidiary Guarantees in
addition to or in place of uncertificated Notes or Subsidiary Guarantees, or comply with Article
Five of the Indenture or make any other change that does not adversely affect in any material
respect the rights of any Holder of a Note.

          13. Restrictive Covenants. The Indenture imposes certain limitations on the ability
of the Company and its Restricted Subsidiaries to, among other things, incur additional
Indebtedness or Liens, make payments in respect of its Capital Stock or certain Indebtedness, enter
into transactions with Affiliates, create dividend or other payment restrictions affecting
Restricted Subsidiaries, merge or consolidate with any other Person, sell, assign, transfer, lease,
convey or otherwise dispose of all or substantially all of its assets or adopt a plan of
liquidation. Such limitations are subject to a number of important qualifications and exceptions.
The Company must annually report to the Trustee on compliance with such limitations.

          14. Successors. When a successor assumes, in accordance with the Indenture, all the
obligations of its predecessor under the Notes, the Subsidiary Guarantees, the

A-7

 

 Collateral Agreements, if applicable, and the Indenture, the predecessor will be released from
those obligations.

          15. Defaults and Remedies. If an Event of Default occurs and is continuing, the
Trustee or the Holders of at least 25% in aggregate principal amount of Notes then outstanding may
declare all the Notes to be due and payable in the manner, at the time and with the effect provided
in the Indenture. Holders of Notes may not enforce the Indenture or the Notes except as provided
in the Indenture. The Trustee is not obligated to enforce the Indenture or the Notes unless it has
received indemnity reasonably satisfactory to it. The Indenture permits, subject to certain
limitations therein provided, Holders of a majority in aggregate principal amount of the Notes then
outstanding to direct the Trustee in its exercise of any trust or power. The Trustee may withhold
from Holders of Notes notice of any continuing Default or Event of Default (except a Default in
payment of principal or interest) if it determines that withholding notice is in their interest.

          16. Trustee and Collateral Agent Dealings with Company. Each of the Trustee and the
Collateral Agent under the Indenture, in its individual or any other capacity, may become the owner
or pledgee of Notes and may otherwise deal with the Company, its Subsidiaries or their respective
Affiliates as if it were not the Trustee or the Collateral Agent.

          17. No Recourse Against Others. No past, present or future director, officer,
employee, incorporator or stockholder, as such, of the Company shall have any liability for any
obligation of the Company under the Notes or the Indenture or for any claim based on, in respect of
or by reason of, such obligations or their creation. Each Holder of a Note by accepting a Note
waives and releases all such liability. Such waiver and release are part of the consideration of
this Note.

          18. Subsidiary Guarantees. Payment of principal and interest (including interest on
overdue principal and overdue interest, if lawful) is unconditionally guaranteed, jointly and
severally, by each of the Subsidiary Guarantors.

          19. Authentication. This Note shall not be valid until the Trustee or Authenticating
Agent manually signs the certificate of authentication on this Note.

          20. Governing Law. The Laws of the State of New York shall govern this Note, the
Subsidiary Guarantees and the Indenture, without regard to principles of conflict of laws.

          21. Abbreviations and Defined Terms. Customary abbreviations may be used in the name
of a Holder of a Note or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants
by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in
common), CUST (Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

A-8

 

          22. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on
the Notes as a convenience to the Holders of the Notes. No representation is made as to the
accuracy of such numbers as printed on the Notes and reliance may be placed only on the other
identification numbers printed hereon.

          The Company will furnish to any Holder of a Note upon written request and without charge a
copy of the Indenture. Requests may be made to: Coinmach Service Corp., 303 Sunnyside Blvd.,
Suite 70, Plainview, New York 11803, Attn: Chief Executive Officer.

A-9

 

ASSIGNMENT FORM

          If you the Holder want to assign this Note, fill in the form below and have your signature
guaranteed:

I or we assign and transfer this Note to:

(Print or type name, address and zip code and
social security or tax ID number of assignee)

and irrevocably appoint                                   
agent to transfer this Note on the books of the Company. The agent may substitute another to act
for him.

Dated:                                                                                                         Signed:                                                                                                                        
                                                                                                                             (Sign
exactly as name appears on the
                                                                                                                             other
side of this Note)

Signature Guarantee:                                                                                 

A-10

 

[OPTION OF HOLDER TO ELECT PURCHASE]

          If you want to elect to have this Note purchased by the Company pursuant to Section 4.15 or
Section 4.16 of the Indenture, check the appropriate box:

	 	 	 	 	 
	 

	 	Section 4.15 [
	 	]
	 

	 	Section 4.16 [
	 	]

          If you want to elect to have only part of this Note purchased by the Company pursuant to
Section 4.15 or Section 4.16 of the Indenture, state the amount you elect to have purchased:

$                                          

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 	 	 	 
	

	 	 	 	NOTICE:
	 	The signature on this assignment must
correspond with the name as it appears upon the
face of the within Note in every particular
without alteration or enlargement or any change
whatsoever and be guaranteed by the endorser’s
bank or broker.
	Signature Guarantee:	 	 	 	 	 
	 	 	 	 

A-11

 

FORM OF SUBSIDIARY GUARANTEE

          [Name of Subsidiary Guarantor] and its successors under the Indenture, jointly and severally
with any other Subsidiary Guarantors, hereby irrevocably and unconditionally guarantee, on a senior
[secured] a  [unsecured] b  basis, (i) the due and punctual
payment of the principal of, premium, if any, and interest on the Notes, whether at maturity, by
acceleration or otherwise, the due and punctual payment of interest on the overdue principal of and
interest, if any, on the Notes, to the extent lawful, and the due and punctual performance of all
other obligations of Coinmach Service Corp. (the “Company”) to the Holders or the Trustee all in
accordance with the terms set forth in Article Ten of the Indenture, (ii) in case of any extension
of time of payment or renewal of any Notes or any of such other obligations, that the same will be
promptly paid in full when due or performed in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration or otherwise and (iii) have agreed to pay any
and all costs and expenses (including reasonable attorneys’ fees) incurred by the Trustee or any
Holder in enforcing any rights under this Subsidiary Guarantee. Capitalized terms used herein have
the meanings assigned to them in the Indenture unless otherwise indicated.

          No stockholder, employee, officer, director or incorporator, as such, past, present or future,
of [name of Subsidiary Guarantor] shall have any personal liability under this Subsidiary Guarantee
by reason of his or its status as such stockholder, employee, officer, director or incorporator.
Each Holder by accepting this Subsidiary Guarantee waives and releases all such liability. The
waiver and release are part of the consideration for issuance of the Notes and Subsidiary
Guarantees. This Subsidiary Guarantee shall be binding upon [name of Subsidiary Guarantor] and its
successors and assigns and shall inure to the benefit of the successors and assigns of the Trustee
and the Holders and, in the event of any transfer or assignment of rights by any Holder or the
Trustee, the rights and privileges herein conferred upon that party shall automatically extend to
and be vested in such transferee or assignee, all subject to the terms and conditions hereof.

          This Subsidiary Guarantee shall not be valid or obligatory for any purpose until the
certificate of authentication on the Note upon which this Subsidiary Guarantee is noted shall have
been executed by the Trustee under the Indenture by the manual signature of one of its authorized
officers.

	a	 	Insert if Subsidiary Guarantor is
Coinmach Laundry Corporation.
	 
	b	 	Insert if Subsidiary Guarantor is not
Coinmach Laundry Corporation.

A-12

 

          THE TERMS OF ARTICLE TEN OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE.

          This Subsidiary Guarantee shall be governed by and construed in accordance with the laws of
the State of New York.

	 	 	 	 	 
	 	[NAME OF SUBSIDIARY GUARANTOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

A-13

 

	 	 	 	 	 

EXHIBIT B

FORM OF RESTRICTED NOTE

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR
FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF,
THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A
UNDER THE SECURITIES ACT), OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN OFFSHORE
TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT, (2) AGREES THAT IT WILL NOT
WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS NOTE RESELL OR OTHERWISE TRANSFER THIS NOTE
EXCEPT (A) TO COINMACH SERVICE CORP. OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES TO A
QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) INSIDE THE
UNITED STATES TO AN ACCREDITED INVESTOR (AS DEFINED IN RULE 501(a)(1), (2), (3), OR (7) UNDER THE
SECURITIES ACT (AN “ACCREDITED INVESTOR”)) THAT, PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS
FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER) TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS NOTE (THE FORM OF
WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE FOR THIS NOTE), (D) OUTSIDE THE UNITED STATES IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT (IF AVAILABLE), (E)
PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE), (F) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF COINMACH SERVICE CORP. SO REQUESTS), OR (G)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (E) AGREES THAT IT
WILL GIVE TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
THIS LEGEND IN CONNECTION WITH ANY TRANSFER OF THIS NOTE WITHIN TWO YEARS AFTER THE ORIGINAL
ISSUANCE OF THIS NOTE. IF THE PROPOSED TRANSFEREE IS AN ACCREDITED INVESTOR, THE HOLDER MUST,
PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE AND COINMACH CORPORATION SUCH CERTIFICATIONS, LEGAL
OPINIONS OR OTHER INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH
TRANSFER IS BEING MADE PURSUANT TO

B-1

 

AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S.
PERSON” HAVE THE MEANING GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.

[THE COMPANY MAY SUBSEQUENTLY ISSUE NOTES THAT ARE IDENTICAL IN ALL MATERIAL RESPECTS TO THIS
NOTE BUT HAVE ORIGINAL ISSUE DISCOUNT. IN SUCH CASE, THE HOLDER OF THIS NOTE WILL BE DEEMED TO
HAVE EXCHANGED A PORTION OF ITS NOTES OF THE COMPANY FOR SUCH NEWLY ISSUED NOTES WITH ORIGINAL
ISSUE DISCOUNT. THE AGGREGATE PRINCIPAL AMOUNT OF NOTES OWNED BY SUCH HOLDER, HOWEVER, WILL NOT
CHANGE AS A RESULT OF SUCH DEEMED EXCHANGE. WITH RESPECT TO SUCH NEWLY ISSUED NOTES WITH ORIGINAL
ISSUE DISCOUNT, A HOLDER MAY OBTAIN THE AMOUNT OF ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE, THE
ISSUE PRICE AND THE YIELD TO MATURITY BY SUBMITTING A WRITTEN REQUEST TO THE COMPANY.]

CUSIP No.:

COINMACH SERVICE CORP.

11% SENIOR SECURED NOTE DUE 2024

No. $

          COINMACH SERVICE CORP., a Delaware corporation (the “Company,” which term includes any
successor entity), for value received promises to pay to            or registered assigns,
the principal sum of [ ] Dollars on December 1, 2024.

          Interest Payment Dates: March 1, June 1, September 1 and December 1.

          Record Dates: February 25, May 25, August 25 and November 25.

          Reference is made to the further provisions of this Note contained herein, which will for all
purposes have the same effect as if set forth at this place.

B-2

 

          IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by
its duly authorized officers and a facsimile of its corporate seal to be affixed hereto or
imprinted hereon.

	 	 	 	 	 
	 	COINMACH SERVICE CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated:                                          

B-3

 

Certificate of Authentication

     This is one of the 11% Senior Secured Notes due 2024 referred to in the within-mentioned
Indenture.

                                                                   
                          
     
             THE BANK OF NEW YORK, as Trustee

Dated:                                                             
                    
                    
By:                                                                                                     

                    
                    
                    
                    
                    
                    Authorized Signatory

B-4

 

(REVERSE OF RESTRICTED NOTE)

11% Senior Secured Note due 2024

     1. Interest. COINMACH SERVICE CORP., a Delaware corporation (the “Company”),
promises to pay interest on the principal amount of this Note at the rate per annum shown above.
Interest on the Notes will accrue from the most recent date on which interest has been paid on this
Note or if no interest has been paid, from [               ], 20[   ]. The Company will pay
interest quarterly in arrears on each Interest Payment Date, commencing [               ], 20[   ]. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months.

     2. Method of Payment. The Company shall pay interest on the Notes to the Persons who
are the registered Holders at the close of business on the Record Date immediately preceding the
Interest Payment Date even if the Notes are cancelled on registration of transfer or registration
of exchange after such Record Date. Holders must surrender Notes to a Paying Agent to collect
principal payments. The Company shall pay principal and interest in money of the United States
that at the time of payment is legal tender for payment of public and private debts (“U.S. Legal
Tender”). However, the Company may pay principal and interest by its check payable in such
U.S. Legal Tender. The Company may deliver any such interest payment to the Paying Agent or to a
Holder at the Holder’s registered address.

     3. Paying Agent and Registrar. Initially, The Bank of New York (the “Trustee”)
will act as Paying Agent and Registrar. The Company may change any Paying Agent, Registrar or
co-Registrar without notice to the Holders.

     4. Indenture. The Company issued the Notes and Laundry Corp. issued its Subsidiary
Guarantee under an Indenture, dated as of November 24, 2004 (the “Indenture”), between the
Company, the Subsidiary Guarantors party thereto from time to time, the Trustee and the Collateral
Agent. Capitalized terms herein are used as defined in the Indenture unless otherwise defined
herein. The terms of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the
“TIA”), as in effect on the date on which the Indenture is qualified under the TIA.
Notwithstanding anything to the contrary herein, the Notes are subject to all such terms, and
Holders of Notes are referred to the Indenture and the TIA for a statement of them. The Notes are
general secured obligations of the Company. Each Holder, by accepting a Note, agrees to be bound
by all of the terms and provisions of the Indenture, as the same may be amended from time to time.

B-5

 

     5. Optional Redemption; Sinking Fund.

     (a) Make-Whole Redemption. At any time prior to December 1, 2009, the Company may, at
its option, redeem all or part of the Notes upon not less than 30 nor more than 60 days’ notice, at
a Redemption Price equal to the sum of the present values of the redemption price of such Notes at
the first optional Redemption Date described below and all required interest payments, excluding
accrued but unpaid interest, due on such Notes through such first optional Redemption Date,
discounted to the date of such redemption on a quarterly basis, assuming 360-day years consisting
of twelve 30-day months, at the Treasury Rate plus 50 basis points, plus accrued and unpaid
interest to the Redemption Date, subject to the right of Holders of record on the relevant Record
Date to receive interest due on the relevant Interest Payment Date.

     (b) Redemption at Scheduled Prices. On or after December 1, 2009, the Company may, at
its option, redeem all or part of the Notes, upon not less than 30 nor more than 60 days’ notice,
at the redemption prices, expressed as percentages of principal amount set forth below plus accrued
and unpaid interest, on the Notes redeemed, to the applicable Redemption Date, if redeemed during
the twelve-month period beginning on December 1 of the years indicated below:

	 	 	 	 	 
	Year	 	Percentage
	2009
	 	 	105.500	%
	2010
	 	 	103.667	%
	2011
	 	 	101.833	%
	2012 and thereafter
	 	 	100.000	%

     (c) Tax Redemption. At any time, the Company may, at its option, redeem all, but not
part, of the Notes, upon not less than 30 nor more than 60 days’ notice, at a Redemption Price
equal to 100% of the principal amount of the Notes plus accrued and unpaid interest to the
Redemption Date if, for U.S. federal income tax purposes, the Company is not, or would not be,
permitted to deduct the interest payable on the Notes from its income.

     (d) Sinking Fund. As a mandatory sinking fund (the “Sinking Fund”), the Company
will redeem on December 1 of each of the years 2016 to 2019, inclusive, Notes in an aggregate
principal amount equal to 10% of the aggregate principal amount of the Notes originally issued
under the Indenture at a Redemption Price equal to 100% of the aggregate principal amount of the
Notes to be redeemed, together with accrued and unpaid interest to the Redemption Date. The Company
may, at its option, credit against the aggregate principal amount of the Notes to be redeemed in
connection with any Sinking Fund redemption (to the extent not previously credited) the aggregate principal amount of
Notes:

B-6

 

	 	(i)  	previously or contemporaneously redeemed by it pursuant to the
provisions described under paragraph (a), (b) or (c) (or previously or
contemporaneously called for redemption pursuant to such provisions so long as
the Redemption Price therefor shall have been deposited in trust for that
purpose in accordance with the Indenture); and
	 
	 	(ii)  	previously or contemporaneously acquired by it (and delivered
to the Trustee for cancellation), whether by privately negotiated transactions,
by way of tender offers (including Change of Control Offers and Net Proceeds
Offers) or otherwise,

in either case described in clauses (i) and (ii) above other than through mandatory Sinking Fund
redemptions; provided, however, that the Company may only credit purchases of
separate notes pursuant to clause (b) above to the extent that, as of the Business Day immediately
preceding the date on which a Sinking Fund redemption is required, such purchases did not result in
the aggregate principal amount of Notes underlying IDSs exceeding 90% of the aggregate principal
amount of all Notes outstanding on such date.

     6. Notice of Redemption. Notice of redemption will be mailed at least 30 days but not
more than 60 days before the Redemption Date to each Holder of Notes to be redeemed at such
Holder’s registered address.

     Except as set forth in the Indenture, if monies for the redemption of the Notes called for
redemption shall have been deposited with the Paying Agent for redemption on such Redemption Date,
then, unless the Company defaults in the payment of such Redemption Price plus accrued interest, if
any, the Notes called for redemption will cease to bear interest from and after such Redemption
Date and the only right of the Holders of such Notes will be to receive payment of the Redemption
Price plus accrued interest, if any.

     7. Offers to Purchase. Sections 4.15 and 4.16 of the Indenture provide that, after
certain Asset Sales (as defined in the Indenture) and upon the occurrence of a Change of Control
(as defined in the Indenture), and subject to further limitations contained therein, the Company
will make an offer to purchase certain amounts of the Notes in accordance with the procedures set
forth in the Indenture.

     8. Registration Rights. Pursuant to a Registration Rights Agreement among the Company,
the Guarantors and the Holders of the Initial Notes, the Company will be obligated to consummate an
exchange offer pursuant to which the Holder of this Note shall have the right to exchange this Note
for the Company’s Series B 11% Senior Secured Notes due 2024 (the “Exchange Notes”), which
have been registered under the Securities Act, in like principal amount and having terms identical in all material
respects as the Initial Notes. The Holders of the Restricted
Securities shall be entitled to receive certain additional interest

B-7

 

payments in the event such exchange offer is not consummated
and upon certain other conditions, all pursuant to and in accordance with the terms of a
Registration Rights Agreement.

     9. Transfer; Exchange. The Notes are in registered form without coupons. A Holder
shall register the transfer of or exchange of Notes in accordance with the Indenture. The
Registrar may require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and to pay certain transfer taxes or similar governmental charges payable in
connection therewith as permitted by the Indenture. The Registrar need not register the transfer
of or exchange of any Notes or portions thereof selected for redemption (except, in the case of a
Note to be redeemed in part, the portion of the Note not to be redeemed) or to transfer or exchange
any Notes for a period of 15 days prior to a selection of Notes to be redeemed.

     10. Persons Deemed Owners. The registered Holder of a Note shall be treated as the
owner of it for all purposes.

     11. Unclaimed Money. If money for the payment of principal or interest remains
unclaimed for two years, the Trustee and the Paying Agent will pay the money back to the Company.
After that, all liability of the Trustee and such Paying Agent with respect to such money shall
cease.

     12. Discharge Prior to Redemption or Maturity. If the Company at any time deposits
with the Trustee U.S. Legal Tender or U.S. Government Obligations sufficient to pay the principal
of and interest on the Notes to redemption or maturity and complies with the other provisions of
the Indenture relating thereto, the Company will be discharged from certain provisions of the
Indenture, the Notes and the Collateral Agreements (including certain covenants, but excluding its
obligation to pay the principal of and interest on the Notes).

     13. Amendment; Supplement; Waiver. Subject to certain exceptions, the Indenture, the
Notes or the Subsidiary Guarantees may be amended or supplemented with the written consent of the
Holders of at least a majority in aggregate principal amount of the Notes then outstanding, and any
existing Default or Event of Default or noncompliance with any provision may be waived with the
written consent of the Holders of a majority in aggregate principal amount of the Notes then
outstanding. Without notice to or consent of any Holder, the parties thereto may amend or
supplement the Indenture, the Notes or the Subsidiary Guarantees to, among other things, cure any
ambiguity, defect or inconsistency, provide for certificated Notes or Subsidiary Guarantees in
addition to or in place of uncertificated Notes or Subsidiary Guarantees, or comply with Article
Five of the Indenture or make any other change that does not adversely affect in any material respect the rights of any Holder
of a Note.

     14. Restrictive Covenants. The Indenture imposes certain limitations on the ability of
the Company and its Restricted Subsidiaries to, among other things, incur additional

B-8

 

Indebtedness or Liens, make payments in respect of its Capital Stock or certain Indebtedness, enter into
transactions with Affiliates, create dividend or other payment restrictions affecting Restricted
Subsidiaries, merge or consolidate with any other Person, sell, assign, transfer, lease, convey or
otherwise dispose of all or substantially all of its assets or adopt a plan of liquidation. Such
limitations are subject to a number of important qualifications and exceptions. The Company must
annually report to the Trustee on compliance with such limitations.

     15. Successors. When a successor assumes, in accordance with the Indenture, all the
obligations of its predecessor under the Notes, the Subsidiary Guarantees, the Collateral
Agreements, if applicable, and the Indenture, the predecessor will be released from those
obligations.

     16. Defaults and Remedies. If an Event of Default occurs and is continuing, the
Trustee or the Holders of at least 25% in aggregate principal amount of Notes then outstanding may
declare all the Notes to be due and payable in the manner, at the time and with the effect provided
in the Indenture. Holders of Notes may not enforce the Indenture or the Notes except as provided
in the Indenture. The Trustee is not obligated to enforce the Indenture or the Notes unless it has
received indemnity reasonably satisfactory to it. The Indenture permits, subject to certain
limitations therein provided, Holders of a majority in aggregate principal amount of the Notes then
outstanding to direct the Trustee in its exercise of any trust or power. The Trustee may withhold
from Holders of Notes notice of any continuing Default or Event of Default (except a Default in
payment of principal or interest) if it determines that withholding notice is in their interest.

     17. Trustee and Collateral Agent Dealings with Company. Each of the Trustee and the
Collateral Agent under the Indenture, in its individual or any other capacity, may become the owner
or pledgee of Notes and may otherwise deal with the Company, its Subsidiaries or their respective
Affiliates as if it were not the Trustee or the Collateral Agent.

     18. No Recourse Against Others. No past, present or future director, officer,
employee, incorporator or stockholder, as such, of the Company shall have any liability for any
obligation of the Company under the Notes or the Indenture or for any claim based on, in respect of
or by reason of, such obligations or their creation. Each Holder of a Note by accepting a Note
waives and releases all such liability. Such waiver and release are part of the consideration of
this Note.

     19. Subsidiary Guarantees. Payment of principal and interest (including interest on
overdue principal and overdue interest, if lawful) is unconditionally guaranteed, jointly and
severally, by each of the Subsidiary Guarantors.

     20. Authentication. This Note shall not be valid until the Trustee or Authenticating
Agent manually signs the certificate of authentication on this Note.

B-9

 

     21. Governing Law. The Laws of the State of New York shall govern this Note, the
Subsidiary Guarantees and the Indenture, without regard to principles of conflict of laws.

     22. Abbreviations and Defined Terms. Customary abbreviations may be used in the name
of a Holder of a Note or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants
by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in
common), CUST (Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

     23. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on
the Notes as a convenience to the Holders of the Notes. No representation is made as to the
accuracy of such numbers as printed on the Notes and reliance may be placed only on the other
identification numbers printed hereon.

     The Company will furnish to any Holder of a Note upon written request and without charge a
copy of the Indenture. Requests may be made to: Coinmach Service Corp., 303 Sunnyside Blvd.,
Suite 70, Plainview, New York 11803, Attn: Chief Executive Officer.

B-10

 

ASSIGNMENT FORM

     If you the Holder want to assign this Note, fill in the form below and have your signature
guaranteed:

I or we assign and transfer this Note to:

 

	 
	__________________________________________________________________________________________________________________

(Print or type name, address and zip code and

social security or tax ID number of assignee)

and irrevocably appoint___agent to transfer this Note on the books of the Company. The agent may substitute another to act
for him.

	 
	Dated:__________________________________________Signed:____________________________________________________________

	

	 	(Sign exactly as name appears on
the
other side of this Note)

	 
	Signature
Guarantee:___________________________

B-11

 

[OPTION OF HOLDER TO ELECT PURCHASE]

     If you want to elect to have this Note purchased by the Company pursuant to Section 4.15 or
Section 4.16 of the Indenture, check the appropriate box:

Section 4.15 [          ]

Section 4.16 [          ]

     If you want to elect to have only part of this Note purchased by the Company pursuant to
Section 4.15 or Section 4.16 of the Indenture, state the amount you elect to have purchased:

$_______________________________________

	Dated: __________________________________

	NOTICE:

	 	The signature on this assignment must
correspond with the name as it appears upon the
face of the within Note in every particular
without alteration or enlargement or any change
whatsoever and be guaranteed by the endorser’s
bank or broker.

Signature Guarantee:
_______________________

B-12

 

FORM OF SUBSIDIARY GUARANTEE

     [Name of Subsidiary Guarantor] and its successors under the Indenture, jointly and severally
with any other Subsidiary Guarantors, hereby irrevocably and unconditionally guarantee, on a senior
[secured] a  [unsecured] b  basis, (i) the due and punctual
payment of the principal of, premium, if any, and interest on the Notes, whether at maturity, by
acceleration or otherwise, the due and punctual payment of interest on the overdue principal of and
interest, if any, on the Notes, to the extent lawful, and the due and punctual performance of all
other obligations of Coinmach Service Corp. (the “Company”) to the Holders or the Trustee all in
accordance with the terms set forth in Article Ten of the Indenture, (ii) in case of any extension
of time of payment or renewal of any Notes or any of such other obligations, that the same will be
promptly paid in full when due or performed in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration or otherwise and (iii) have agreed to pay any
and all costs and expenses (including reasonable attorneys’ fees) incurred by the Trustee or any
Holder in enforcing any rights under this Subsidiary Guarantee. Capitalized terms used herein have
the meanings assigned to them in the Indenture unless otherwise indicated.

     No stockholder, employee, officer, director or incorporator, as such, past, present or future,
of [name of Subsidiary Guarantor] shall have any personal liability under this Subsidiary Guarantee
by reason of his or its status as such stockholder, employee, officer, director or incorporator.
Each Holder by accepting this Subsidiary Guarantee waives and releases all such liability. The
waiver and release are part of the consideration for issuance of the Notes and Subsidiary
Guarantees. This Subsidiary Guarantee shall be binding upon [name of Subsidiary Guarantor] and its
successors and assigns and shall inure to the benefit of the successors and assigns of the Trustee
and the Holders and, in the event of any transfer or assignment of rights by any Holder or the
Trustee, the rights and privileges herein conferred upon that party shall automatically extend to
and be vested in such transferee or assignee, all subject to the terms and conditions hereof.

     This Subsidiary Guarantee shall not be valid or obligatory for any purpose until the
certificate of authentication on the Note upon which this Subsidiary Guarantee is noted shall have
been executed by the Trustee under the Indenture by the manual signature of one of its authorized
officers.

	a	 	Insert if Subsidiary Guarantor is Coinmach Laundry Corporation.
	 
	b	 	Insert if Subsidiary Guarantor is not Coinmach Laundry Corporation.

B-13

 

     THE TERMS OF ARTICLE TEN OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE.

     This Subsidiary Guarantee shall be governed by and construed in accordance with the laws of
the State of New York.

	 	 	 	 	 
	 	[NAME OF SUBSIDIARY GUARANTOR]

 	 
	 	By:  	_______________________________
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

B-14

 

EXHIBIT C

FORM OF LEGEND FOR GLOBAL NOTES

          Any Global Note authenticated and delivered hereunder shall bear a legend (which would be in
addition to any other legends required in the case of a Restricted Security) in substantially the
following form:

      THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A
DEPOSITORY OR A SUCCESSOR DEPOSITORY. THIS NOTE IS NOT EXCHANGEABLE FOR NOTES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS
NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITORY TO A NOMINEE
OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER
NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE.

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

C-1

 

EXHIBIT D

FORM OF CERTIFICATE TO BE

DELIVERED IN CONNECTION WITH

TRANSFERS TO NON-QIB ACCREDITED INVESTORS

___________, ____

The Bank of New York

101 Barclay Street

New York, New York 10286

Attention: Corporate Trust Administration

	 	 	 	 	 
	

	 	Re:
	 	Coinmach Service Corp. (the “Company”)
	

	 	 	 	Income Deposit Securities (the “IDSs”)     

Ladies and Gentlemen:

          In connection with our proposed purchase of $___aggregate principal amount of the Notes, we
confirm that:

      1. We have received a copy of the Prospectus (the “Prospectus”), dated November 19,
2004, relating to the Notes and such other information as we deem necessary in order to make
our investment decision. We acknowledge that we have read and agreed to the matters stated
in the section entitled “Transfer Restrictions” of the Prospectus.

      2. We understand that any subsequent transfer of the Notes is subject to certain
restrictions and conditions set forth in the Indenture dated as of November 24, 2004
relating to the Notes (the “Indenture”) and the undersigned agrees to be bound by, and not
to resell, pledge or otherwise transfer the Notes except in compliance with, such
restrictions and conditions and the Securities Act of 1933, as amended (the “Securities
Act”).

      3. We understand that the offer and sale of the Notes have not been registered under
the Securities Act, and that the Notes may not be offered or sold except as permitted in the
following sentence. We agree, on our own behalf and on behalf of any accounts for which we
are acting as hereinafter stated, that if we should sell or otherwise transfer any Notes
prior to the date which is within three years after the

D-1

 

original issuance of the Notes or the last date on which the Note is owned by an
affiliate of the Company, we will do so only (i) to the Company or any of its subsidiaries,
(ii) inside the United States in accordance with Rule 144A under the Securities Act to a
“qualified institutional buyer” (as defined in Rule 144A under the Securities Act), (iii)
inside the United States to an institutional “accredited investor” (as defined below) that,
prior to such transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer)
to you a signed letter containing certain representations and agreements relating to the
restrictions on transfer of the Notes, substantially in the form of this letter, (iv)
outside the United States in accordance with Rule 904 of Regulation S under the Securities
Act, (v) pursuant to the exemption from registration provided by Rule 144 under the
Securities Act (if available), or (vi) pursuant to an effective registration statement under
the Securities Act, and we further agree to provide to any person purchasing any of the
Notes from us a notice advising such purchaser that resales of the Notes are restricted as
stated herein.

      4. We are not acquiring the Notes for or on behalf of, and will not transfer the Notes
to, any pension or welfare plan (as defined in Section 3 of the Employee Retirement Income
Security Act of 1974), except as permitted in the section entitled “Transfer Restrictions”
of the Offering Memorandum.

      5. We understand that, on any proposed resale of any Notes, we will be required to
furnish to you and the Company such certification, legal opinions and other information as
you and the Company may reasonably require to confirm that the proposed sale complies with
the foregoing restrictions. We further understand that the Notes purchased by us will bear
a legend to the foregoing effect.

      6. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2),
(3) or (7) of Regulation D under the Securities Act) and have such knowledge and experience
in financial and business matters as to be capable of evaluating the merits and risks of our
investment in the Notes, and we and any accounts for which we are acting are each able to
bear the economic risk of our or their investment, as the case may be.

      7. We are acquiring the Notes purchased by us for our own account or for one or more
accounts (each of which is an institutional “accredited investor”) as to each of which we
exercise sole investment discretion.

          You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby, and we agree to notify
you promptly if any of our representations or warranties herein cease to be accurate and complete.

D-2

 

          This letter shall be governed by, and construed in accordance with, the laws of the State of
New York without regard to principles of conflicts of laws.

	 	 	 
	

	 	Very truly yours,
	 
	 	 
	

	 	[Name of Transferee]
	 
	 	 
	

	 	By:
	

	 	

	

	 	        Authorized Signature

D-3

 

EXHIBIT E

FORM OF CERTIFICATE TO BE DELIVERED

IN CONNECTION WITH TRANSFERS

PURSUANT TO REGULATION S

The Bank of New York

101 Barclay Street

New York, New York 10286

Attention: Corporate Trust Administration

	 	 	 	 	 
	

	 	Re:
	 	Coinmach Service Corp. (the “Company”)
	

	 	 	 	Income Deposit Securities (the “IDSs”)     

Ladies and Gentlemen:

          In connection with our proposed sale of $        aggregate principal amount of the Notes, we
confirm that Such sale has been effected pursuant to and in accordance with Regulation S under the
U.S. Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, we represent
that:

      (1) the offer of the Notes was not made to a person in the United States;

      (2) either (a) at the time the buy offer was originated, the transferee was outside the
United States or we and any person acting on our behalf reasonably believed that the
transferee was outside the United States, or (b) the transaction was executed in, on or
through the facilities of a designated off-shore securities market and neither we nor any
person acting on our behalf knows that the transaction has been pre-arranged with a buyer in
the United States;

      (3) no directed selling efforts have been made in the United States in contravention of
the requirements of Rule 903(b) or Rule 904(b) of Regulation S, as applicable;

      (4) the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act; and

      (5) we have advised the transferee of the transfer restrictions applicable to the
Notes.

E-1

 

          You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby. Terms used in this
certificate have the meanings set forth in Regulation S.

	 	 	 
	

	 	Very truly yours,
	 
	 	 
	

	 	[Name of Transferee]
	 
	 	 
	

	 	By:
	

	 	

	

	 	        Authorized Signature

E-2

 

EXHIBIT F

FORM OF GLOBAL IDS

          THIS CERTIFICATE IS A GLOBAL INCOME DEPOSIT SECURITY (“IDS”) AND IS REGISTERED IN THE NAME OF
A DEPOSITORY OR A NOMINEE OF A DEPOSITORY OR A SUCCESSOR DEPOSITORY. THIS CERTIFICATE IS NOT
EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS
NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS
CERTIFICATE (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF
THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE
DEPOSITORY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

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

          EACH IDS INITIALLY CONSISTS OF ONE SHARE OF CLASS A COMMON STOCK, $0.01 PAR VALUE, OF COINMACH
SERVICE CORP. (THE “CLASS A COMMON STOCK”) (SUBJECT TO ADJUSTMENT IN CASE OF A STOCK SPLIT,
RECOMBINATION OR RECLASSIFICATION OF THE CLASS A COMMON STOCK AS REFLECTED IN SCHEDULE B HERETO)
AND $6.14 PRINCIPAL AMOUNT OF THE 11% SENIOR SECURED NOTES DUE 2024 OF COINMACH SERVICE CORP. (THE
“NOTES”). THE CLASS A COMMON STOCK AND NOTES EVIDENCED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED
OR EXCHANGED SEPARATELY AND MAY BE TRANSFERRED OR EXCHANGED ONLY TOGETHER UNTIL SEPARATED IN
ACCORDANCE WITH THE TERMS OF THIS CERTIFICATE.

F-1

 

COINMACH SERVICE CORP.

18,333,333 IDSs

	 	 	 
	No. 1

	 	CUSIP NO.:19259W 10 7
	

	 	ISIN: US19259W1071

          Coinmach Service Corp., a Delaware corporation (the “Company”), hereby certifies that Cede &
Co., or its registered assigns, is the registered owner of the number of Income Deposit Securities
(“IDSs”) listed on Schedule A hereto.

          Each IDS consists of one share of Class A common stock, par value $0.01 per share, of the
Company (the “Class A Common Stock”) (subject to adjustment in case of a stock split, recombination
or reclassification of the Class A Common Stock as reflected in Schedule B hereto) and $6.14
principal amount of 11% senior secured notes due 2024 of the Company (the “Notes”). The global
Note and global Class A Common Stock certificate constituting part of this IDS Certificate are each
attached hereto. The terms of (i) the Notes are governed by an Indenture (the “Indenture”) dated
as of November 24, 2004, among the Company, the Subsidiary Guarantors party thereto from time to
time and The Bank of New York as trustee (the “Trustee”) and collateral agent (the “Collateral
Agent”) and are subject to the terms and provisions contained therein, and (ii) the Class A Common
Stock is governed by the certificate of incorporation of the Company (the “Certificate of
Incorporation”), and is subject to the terms and provisions contained therein, to all of which
terms and provisions the owner of a beneficial interest (each a “holder”) in this IDS Certificate
consents by acceptance hereof. The Company will furnish to any holder of this IDS Certificate upon
written request and without charge a copy of the Indenture and the Certificate of Incorporation.

          Upon the occurrence of a stock split, stock divided or reclassification of the Class A Common
Stock, the IDS will automatically reflect such event and the Company will notify the IDS transfer
agent and DTC in writing of such event and instruct them to reflect the resulting changes on
Schedule B hereto. Upon the occurrence of any such event, the Company shall provide a notice,
which notice may be in the form of a press release or other public announcement, or file with the
Securities and Exchange Commission (the “SEC”) a Current Report on Form 8-K or any other applicable
form, in either case, disclosing the changes in the ratio of Class A Common Stock to principal
amount of Notes as a result of such event.

          This IDS Certificate is not valid unless countersigned and registered by the IDS transfer
agent and registrar.

AUTOMATIC SEPARATION:

          Each IDS will automatically and permanently separate into one share of Class A Common Stock
(subject to adjustment in case of a stock split, recombination or reclassification

F-2

 

of the Class A Common Stock as reflected in Schedule B hereto) and $6.14 principal amount of
Notes on November 24, 2019.

          In addition, each IDS will automatically and permanently separate into one share of Class A
Common Stock (subject to adjustment in case of a stock split, recombination or reclassification of
the Class A Common Stock as reflected in Schedule B hereto) and $6.14 principal amount of Notes on
(i) the date of any redemption or repurchase by the Company of all of the Notes in accordance with
the Indenture (in the case of a redemption or repurchase of less than all of the Notes, including
without limitation a redemption of a portion of the Notes pursuant to the Sinking Fund (as defined
in the Indenture), solely those IDSs associated with the Notes redeemed or repurchased shall
separate); and (ii) the date on which all remaining principal on the Notes becomes due and payable.

          In addition, each IDS will automatically be separated (subject to recombination as described
below under “Recombination”) into one share of Class A Common Stock (subject to adjustment in case
of a stock split, recombination or reclassification of the Class A Common Stock as reflected in
Schedule B hereto) and $6.14 principal amount of Notes on (i) the occurrence of a Separation Event
of Default (as defined in the Indenture); (ii) the last business day of any calendar month prior to
the Merger Event (as defined in the Indenture), if on such day neither (A) the Disproportionality
Test (as defined in the Indenture) nor (B) the Total Remaining Payments Tests (as defined in the
Indenture) are met; and (iii) the date of notice to the Company that the designated securities
depositary for the IDSs either (A) is unwilling or unable to continue as securities depository with
respect to the IDSs or (B) will cease to be a registered clearing agency under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and in either case the Company is unable to
find a successor depository.

          As promptly as practicable following the Company becoming aware of the occurrence of any such
event, the Company shall provide a notice, which notice may be in the form of a press release or
other public announcement, or file with the SEC a Current Report on Form 8-K or any other
applicable form, in either case, disclosing the automatic separation as a result of such event.

          Furthermore, upon the issuance by the Company of additional Notes pursuant to the Indenture in
a Primary Registered Offering (as defined in the Indenture) (i) with OID (as defined in the
Indenture) or (ii) subsequent to an “OID Exchange” (as defined below) (in each such case, “New
Notes”), (A) the IDSs represented by this IDS Certificate will be automatically separated into the
Class A Common Stock and the Notes represented hereby, (B) this IDS Certificate shall be canceled,
and (C) a new IDS Certificate(s) will be issued to the record holder of this IDS Certificate (an
“OID Exchange”) representing the same number of IDSs (“New IDSs”). Each New IDS will consist of
one share of Class A Common Stock (subject to adjustment in the case of a stock split,
recombination or reclassification of the Class A Common Stock as reflected in Schedule B hereto)
and $6.14 principal amount of a combination of the Notes, Non-OID Additional Notes (as defined in
the Indenture), if any, and New Notes (“OID Exchange Units”) in proportion to the aggregate
principal balances thereof.

F-3

 

VOLUNTARY SEPARATION:

          The holder of this IDS Certificate is entitled, at any time from the earliest to occur of (i)
January 8, 2005, (ii) the acceptance by such holder of a Change of Control Offer (as defined in the
Indenture), and (iii) the acceptance by such holder of a Net Proceeds Offer (as defined in the
Indenture), to separate the IDSs represented by this IDS Certificate or any portion thereof for one
share of Class A Common Stock (subject to adjustment in case of stock split, recombination or
reclassification of the Class A Common Stock as reflected in Schedule B hereto) and $6.14 principal
amount of Notes for each IDS (provided, however, that with respect to clause (ii) and (iii) above,
such events will cause solely those IDSs associated with the Notes that the holder shall have
elected to be repurchased in such Change of Control Offer or Net Proceeds Offer to separate), and
the Company will take such action as is necessary to facilitate such voluntary separation. A
holder of this IDS Certificate may not accept a Change of Control Offer or a Net Proceeds Offer or
obtain a Class A Common Stock certificate without the separation of the applicable IDSs.

COMBINATION AND RECOMBINATION:

          Any holder of Class A Common Stock and Notes or Non-OID Additional Notes or, following any OID
Exchange, OID Exchange Units, is entitled, at any time and from time to time prior to November 24,
2019, to combine such holder’s Class A Common Stock and Notes or Non-OID Additional Notes or,
following any OID Exchange, OID Exchange Units, to form IDSs; provided, however, that (i) in the
event the IDSs were automatically separated as a result of the occurrence of a Separation Event of
Default, IDSs may thereafter only be created or recombined after the related Default or Event of
Default (each as defined in the Indenture) has been cured or waived in accordance with the
provisions of the Indenture; (ii) in the event the IDSs were automatically separated on a date
prior to the occurrence of the Merger Event on which neither the Disproportionality Test nor the
Total Remaining Payments Tests were met, IDSs may thereafter only be created or recombined on or
after the first to occur of the Merger Event and a date on which either of such tests is once again
met; (iii) in the event the IDSs were automatically separated because either the designated
securities depositary for the IDSs (A) was unwilling or unable to continue as securities depositary
with respect to the IDSs or (B) ceased to be a registered clearing agency under the Exchange Act,
IDSs may thereafter only be created or recombined at such time as the Company has established a
successor depositary willing and able to provide such services to the Company; and (iv) any holder
whose ownership of shares of Class A Common Stock is represented by a stock certificate issued to
such holder, prior to recombining such shares of Class A Common Stock with Notes or Non-OID
Additional Notes or, following any OID Exchange, OID Exchange Units, in order to form IDSs, must
surrender such stock certificate to the IDS transfer agent in order that such shares of Class A
Common Stock be included in the global stock certificate(s) representing the shares of Class A
Common Stock underlying IDSs. As promptly as practicable following the Company becoming aware of
the occurrence of any event that permits the recombination of IDSs, the Company shall provide a
notice, which notice may be in the form of a press release or other public announcement, file with
the SEC a

F-4

 

Current Report on Form 8-K or any other applicable form, in either case, disclosing that IDSs
may be recombined as a result of such event.

[Signature pages follow]

F-5

 

Dated: November 24, 2004

	 	 	 
	

	 	COINMACH SERVICE CORP.
	 
	 	 
	

	 	By:
	

	 	

	

	 	        Name:
	

	 	        Title:

F-6

 

Dated: November 24, 2004

Countersigned and registered:

THE BANK OF NEW YORK
   as
IDS Transfer Agent and Registrar

	 	 	 
	By:
	 	 
	

	 	 
	        Name:
	 	 
	        Title:
	 	 

F-7

 

Schedule A

NUMBER OF IDSs

          The number of IDSs represented by this global IDS Certificate is 18,333,333. The following
increases or decreases have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Number of IDSs	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	prior to	 	 	Increase	 	 	Decrease	 	 	Number of IDSs after	 	 	 	 	 
	 	Date	 	 	increase/decrease	 	 	amount	 	 	amount	 	 	increase/decrease	 	 	Signature	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

F-8

 

Schedule B

NUMBER OF SHARES OF CLASS A COMMON STOCK UNDERLYING ONE IDS

          The number of shares of Class A Common Stock underlying each IDS represented by this
Certificate is initially one (1). The following adjustments have been made since the original
issue date of the IDSs:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Number of shares of Class A	 
	 	Number of shares of Class A	 	 	 	 	 	 	 	Common Stock underlying	 
	 	Common Stock underlying	 	 	 	 	 	 	 	each IDS following the	 
	 	each IDS prior to adjustment	 	 	Event triggering adjustment	 	 	adjustment	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

F-9

 

EXHIBIT G

FORM OF NOTICE TO BE

DELIVERED IN CONNECTION WITH COMBINATION/

RECOMBINATION OR SEPARATION OF IDSS

___________, ____

The Bank of New York

101 Barclay Street

Floor 8W

New York, New York 10286

Attention: Corporate Trust Administration

	 	 	 	 	 
	

	 	Re:
	 	Coinmach Service Corp. (the “Company”)
	

	 	 	 	Income Deposit Securities (the “IDSs”)     

Ladies and Gentlemen:

          We hereby request that:

      (1) [You separate ___IDSs owned by the undersigned into ___shares of Class A
Common Stock and ___11% Senior Secured Notes due 2024, in each case, of the Company.]

      (2) [You recombine ___shares of Class A Common Stock and ___11% Senior
Secured Notes due 2024 a, in each case, of the Company and owned by the
undersigned, to form ___IDSs.]

          You and the Company are entitled to rely upon this letter and are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby, and we agree to notify
you promptly if any of our representations or warranties herein cease to be accurate and complete.

	a	 	Must be Initial Notes, Non-OID Additional
Notes or OID Exchange Units.

G-1

 

          This letter shall be governed by, and construed in accordance with, the laws of the State of
New York without regard to principles of conflicts of laws.

	 	 	 
	

	 	Very truly yours,
	 
	 	 
	

	 	[Name of Holder]
	 
	 	 
	

	 	By:
	

	 	

	

	 	        Authorized Signature

G-2

 

EXHIBIT H

FORM OF

SECURITY AGREEMENT

among

COINMACH SERVICE CORP.,

COINMACH LAUNDRY CORPORATION

and

THE BANK OF NEW YORK,

as Collateral Agent

Dated as of ____________

H-1

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	 	 	ARTICLE I

	 	 
	 	 	 	 	 
	 	 	SECURITY INTERESTS
	 	 
	Section 1.1.	 	Grant of Security Interests
	 	6
	Section 1.2.	 	Power of Attorney
	 	7
	 	 	 	 	 
	 	 	ARTICLE II

	 	 
	 	 	 	 	 
	 	 	GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS

	 	 
	 	 	 	 	 
	Section 2.1.	 	Necessary Filings
	 	8
	Section 2.2.	 	No Liens
	 	8
	Section 2.3.	 	Other Financing Statements
	 	8
	Section 2.4.	 	Chief
Executive Office; Records; Corporate Name; Jurisdiction of Incorporation
	 	9
	Section 2.5.	 	Location of Inventory and Equipment
	 	9
	Section 2.6.	 	Recourse
	 	9
	Section 2.7.	 	Trade Names; Change of Name
	 	9
	Section 2.8.	 	Benefit to Laundry Corp
	 	10
	 	 	 	 	 
	 	 	ARTICLE III

	 	 
	 	 	 	 	 
	 	 	SPECIAL PROVISIONS CONCERNING

	 	 
	 	 	ACCOUNTS; CONTRACT RIGHTS; INSTRUMENTS

	 	 
	 	 	AND CERTAIN OTHER TYPES OF COLLATERAL

	 	 
	 	 	 	 	 
	Section 3.1.	 	Additional Representations and Warranties
	 	10
	Section 3.2.	 	Maintenance of Records
	 	10
	Section 3.3.	 	Direction to Account Debtors; Contracting Parties, etc.
	 	11
	Section 3.4.	 	Modification of Terms, etc.
	 	11
	Section 3.5.	 	Collection
	 	12
	Section 3.6.	 	Further Actions
	 	12
	Section 3.7.	 	Special Provisions Regarding Certain Types of Collateral
	 	12
	 	 	 	 	 
	 	 	ARTICLE IV

	 	 
	 	 	 	 	 
	 	 	SPECIAL PROVISIONS CONCERNING MARKS

	 	 
	 	 	 	 	 
	Section 4.1.	 	Additional Representations and Warranties
	 	16
	Section 4.2.	 	Licenses and Assignments
	 	16
	Section 4.3.	 	Infringements
	 	16
	Section 4.4.	 	Preservation of Trademarks
	 	17

H-2

 

	 	 	 	 	 
	 	 	 	 	Page
	Section 4.5.	 	Maintenance of Registration
	 	17
	Section 4.6.	 	Future Registered Marks
	 	17
	Section 4.7.	 	Remedies
	 	17
	 	 	 	 	 
	 	 	ARTICLE V

	 	 
	 	 	 	 	 
	 	 	SPECIAL PROVISIONS CONCERNING

	 	 
	 	 	PATENTS AND COPYRIGHTS

	 	 
	 	 	 	 	 
	Section 5.1.	 	Additional Representations and Warranties
	 	18
	Section 5.2.	 	Licenses and Assignments
	 	18
	Section 5.3.	 	Infringements
	 	18
	Section 5.4.	 	Maintenance of Patents
	 	19
	Section 5.5.	 	Prosecution of Patent Application
	 	19
	Section 5.6.	 	Other Patents and Copyrights
	 	19
	Section 5.7.	 	Remedies
	 	19
	 	 	 	 	 
	 	 	ARTICLE VI

	 	 
	 	 	 	 	 
	 	 	PROVISIONS CONCERNING ALL COLLATERAL

	 	 
	 	 	 	 	 
	Section 6.1.	 	Protection of Collateral Agent’s Security
	 	19
	Section 6.2.	 	Warehouse Receipts Non-negotiable
	 	20
	Section 6.3.	 	Further Actions
	 	20
	Section 6.4.	 	Financing Statements
	 	20
	 	 	 	 	 
	 	 	ARTICLE VII

	 	 
	 	 	 	 	 
	 	 	REMEDIES UPON OCCURRENCE OF EVENT OF DEFAULT

	 	 
	 	 	 	 	 
	Section 7.1.	 	Remedies; Obtaining the Collateral Upon Default
	 	21
	Section 7.2.	 	Remedies; Disposition of the Collateral
	 	22
	Section 7.3.	 	Waiver of Claims
	 	23
	Section 7.4.	 	Application of Proceeds
	 	24
	Section 7.5.	 	Remedies Cumulative
	 	24
	Section 7.6.	 	Discontinuance of Proceedings
	 	24
	Section 7.7.	 	Additional Remedies With Respect to Collateral Located in Louisiana
	 	25
	 	 	 	 	 
	 	 	ARTICLE VIII

	 	 
	 	 	 	 	 
	 	 	INDEMNITY

	 	 
	 	 	 	 	 
	Section 8.1.	 	Indemnity
	 	26
	Section 8.2.	 	Indemnity Obligations Secured by Collateral; Survival
	 	27

H-3

 

	 	 	 	 	 
	 	 	 	 	Page
	 	 	ARTICLE IX

	 	 
	 	 	 	 	 
	 	 	DEFINITIONS

	 	 
	 	 	 	 	 
	 	 	ARTICLE X

	 	 
	 	 	 	 	 
	 	 	MISCELLANEOUS
	 	 
	 	 	 	 	 
	Section 10.1.	 	Notices
	 	34
	Section 10.2.	 	Waiver; Amendment
	 	35
	Section 10.3.	 	Obligations Absolute
	 	35
	Section 10.4.	 	Successors and Assigns
	 	35
	Section 10.5.	 	Headings Descriptive
	 	35
	Section 10.6.	 	Severability
	 	35
	Section 10.7.	 	GOVERNING LAW
	 	35
	Section 10.8.	 	Pledgor’s Duties
	 	36
	Section 10.9.	 	Termination; Release
	 	36
	Section 10.10.	 	Counterparts
	 	37
	Section 10.11.	 	The Collateral Agent
	 	15
	Section 10.12.	 	Intercreditor Agreement
	 	37

H-4

 

SECURITY AGREEMENT

          SECURITY AGREEMENT (as amended, modified or supplemented from time to time, this
“Agreement”), dated as of ___, by COINMACH SERVICE CORP. (the
“Company”), a Delaware corporation having an office at 303 Sunnyside Boulevard, Plainview,
New York 11803, and COINMACH LAUNDRY CORPORATION (“Laundry Corp.” and, together with the
Company, the “Pledgors”) in favor of THE BANK OF NEW YORK (“BNY”), as Collateral
Agent (in such capacity and together with any successors in such capacity, the “Collateral
Agent”) for the benefit of the Secured Creditors (as defined below). Except as otherwise
defined herein, all capitalized terms used herein and defined in the indenture, dated as of the
date hereof (as amended, modified or supplemented from time to time (the “Indenture”),
between the Company, the subsidiary guarantors party thereto from time to time and BNY as trustee
(the “Trustee”) and as Collateral Agent shall be used herein as so defined.

R E C I T A L S:

               1. The Company intends to issue on the date hereof $132,566,664.68 aggregate principal amount
of its 11% Senior Secured Notes due 2024 pursuant to the Indenture (together with any additional
11% Senior Secured Notes due 2024 issued from time to time in accordance with the Indenture, the
“Senior Secured Notes”).

               2. The obligations of the Company under the Indenture and the Senior Secured Notes will be
guaranteed by Laundry Corp. in accordance with the Indenture.

               3. Laundry Corp. will receive substantial benefits from the proceeds of the Senior Secured
Notes and has agreed to grant to the Collateral Agent Liens on and security interests in the
Collateral owned by it to secure its Obligations (as defined below).

               4. Laundry Corp. has previously granted a Lien and pledged all of its right, title and
interest in and relating to the Capital Stock of Coinmach Corporation (“Coinmach Corp.”), a
Delaware corporation, and Proceeds thereof (collectively, the “Shared Collateral”) in favor
of Deutsche Bank Trust Company Americas (“DB Trust”), as collateral agent (the “Credit
Agreement Collateral Agent”) under the Credit Agreement (as amended, modified or supplemented
from time to time, the “Credit Agreement”) dated as of January 25, 2002, among Laundry
Corp., Coinmach Corp., the lenders party thereto from time to time in their capacities as lenders
thereunder, DB Trust, as administrative agent and the Credit Agreement Collateral Agent.

               5. It is a condition precedent to the purchase of the Senior Secured Notes that the Pledgors
shall have executed and delivered this Agreement to the Collateral Agent for the benefit of the
Secured Creditors (as defined below).

               6. It is a condition precedent to the effectiveness of certain amendments to the Credit
Agreement and to the Holdings Pledge Agreement (as defined therein) necessary to permit the grant
by Laundry Corp. hereunder of the Liens in favor of the Collateral Agent on the Shared Collateral
that Laundry Corp. shall have executed and delivered a certain intercreditor

H-5

 

agreement (the “Intercreditor Agreement”) dated as of the date hereof (as the same may
be amended, supplemented or otherwise modified from time to time) among Laundry Corp., the
Collateral Agent and the Credit Agreement Collateral Agent.

               7. The Pledgors desire to enter into this Agreement in order to satisfy the condition
described in the preceding paragraph and to secure the payment and performance of all the
Obligations.

A G R E E M E N T:

               NOW, THEREFORE, in consideration of the above-described extensions of credit to be made to the
Pledgors and other benefits accruing to the Pledgors, the receipt and sufficiency of which are
hereby acknowledged, each Pledgor hereby makes the following representations and warranties to the
Collateral Agent for the benefit of the Secured Creditors and hereby covenants and agrees with the
Collateral Agent for the benefit of the Secured Creditors as follows:

ARTICLE THIRTEEN

SECURITY INTERESTS

               SECTION 13.01. Grant of Security Interests. (a) As security for the prompt and
complete payment and performance when due of all of the Obligations, each Pledgor does hereby
collaterally assign and transfer unto the Collateral Agent for the benefit of the Secured
Creditors, and does hereby grant to the Collateral Agent for the benefit of the Secured Creditors a
continuing security interest of first priority (subject to Liens evidenced by Permitted Filings and
other Permitted Liens) in, all of the right, title and interest of such Pledgor in, to and under
all of the following, whether now existing or hereafter from time to time acquired (collectively,
the “Collateral”):

     (i) all Equipment;

     (ii) all Inventory;

     (iii) all Contracts, together with all Contract Rights thereunder;

     (iv) all Instruments;

     (v) all General Intangibles;

     (vi) all Accounts;

     (vii)all Insurance Policies;

     (viii)all Intellectual Property;

     (ix) all Chattel Paper;

H-6

 

     (x) all Investment Property and Financial Assets;

     (xi) all Deposit Accounts, including, without limitation, the Cash Collateral Account
established for the Pledgors and all monies, securities and instruments deposited or
required to be deposited in such Cash Collateral Account;

     (xii) all Letter-of-Credit Rights;

     (xiii) all Goods;

     (xiv) all Commercial Tort Claims, including, without limitation, each Specified
Commercial Tort Claim;

     (xv) all Documents;

     (xvi) all Fixtures;

     (xvii) all Supporting Obligations relating to any and all of the foregoing;

     (xviii) all books, records, ledgers, printouts, computer recording media, data files,
tapes, file materials and other papers containing information relating to any and all items
of Collateral; and

     (xix) to the extent not covered by clauses (i) through (xviii) of this sentence, all
other personal property whether tangible or intangible wherever located; and

     (xx) all Proceeds of any and all of the foregoing.

               (b) The security interests of the Collateral Agent under this Agreement extends to all
Collateral of the kind which is the subject of this Agreement which each Pledgor may acquire at any
time during the continuation of this Agreement.

               SECTION 13.02. Power of Attorney. Each Pledgor hereby constitutes and appoints the
Collateral Agent its true and lawful attorney, irrevocably with full power after the occurrence of
and during the continuance of an Event of Default (in the name of such Pledgor or as otherwise
provided herein), to take any action and to execute any instrument which is necessary or which the
Collateral Agent may reasonably deem necessary or advisable to accomplish the purposes of this
Agreement, which appointment as attorney is coupled with an interest.

ARTICLE FOURTEEN

GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS

          Each Pledgor represents, warrants and covenants, as of the date hereof, which representations,
warranties and covenants shall survive execution and delivery of this Agreement, as follows:

H-7

 

          SECTION 14.01. Necessary Filings. All filings, registrations and recordings necessary
or appropriate to create, preserve, protect and perfect the security interest granted by each
Pledgor to the Collateral Agent hereby in respect of the Collateral are set forth in Schedule 7 to
the Perfection Certificate. To the knowledge of each Pledgor, such filings, registrations and
recordings have been filed, registered or recorded or concurrently herewith are being filed,
registered or recorded, and the security interest granted to the Collateral Agent pursuant to this
Agreement in and to the Collateral constitutes or shall constitute, upon such filing, registration
or recordings, a perfected security interest therein prior to the rights of all other Persons
therein and subject to no other Liens (except that the Collateral may be subject to the security
interests evidenced by the financing statements disclosed on Schedule 5 to the Perfection
Certificate (the “Permitted Filings”) and to any other Permitted Liens), and is or shall be
entitled to all the rights, priorities and benefits afforded by the Uniform Commercial Code to the
extent complied with or other relevant law as enacted in any relevant jurisdiction to perfected
security interests.

          SECTION 14.02. No Liens. Each Pledgor is, and as to Collateral acquired by it from
time to time after the date hereof such Pledgor will be, the owner of all of the Collateral pledged
by it hereunder free from any Lien, security interest, encumbrance or other right, title or
interest of any Person (other than Liens created hereby, Permitted Liens or Liens evidenced by the
Permitted Filings), and such Pledgor shall use its good faith efforts to defend the Collateral
against all claims and demands of all Persons at any time claiming the same or any interest therein
adverse to the Collateral Agent.

          SECTION 14.03. Other Financing Statements. As of the date hereof, there is no
financing statement (or similar statement or instrument of registration under the law of any
jurisdiction) on file or of record in any relevant jurisdiction covering or purporting to cover any
interest of any kind in the Collateral except as disclosed in Schedules 5 and 7 to the Perfection
Certificate and as may be filed in connection with Permitted Liens. So long as the Termination
Date has not occurred, no Pledgor shall execute or authorize to be filed in any public office any
financing statement (or similar statement or instrument of registration under the law of any
jurisdiction) or statements relating to the Collateral, except financing statements filed or to be
filed in respect of and covering the security interests granted hereby by such Pledgor or in
respect of Permitted Liens.

          SECTION 14.04. Chief Executive Office; Records; Corporate Name; Jurisdiction of
Incorporation. (a) As of the date hereof, the chief executive office of each Pledgor is
located at the address set forth on Schedule 2(a) to the Perfection Certificate.

          The exact legal name, type of organization and jurisdiction of organization (together with the
organizational identification number, if any, issued by such jurisdiction to each Pledgor) of each
Pledgor is set forth in Schedule 1(a) to the Perfection Certificate. No Pledgor shall
“reincorporate” or “reorganize” or otherwise cause the Collateral to be transferred to a Person
incorporated or organized in another state except to the extent (i) permitted pursuant to the
provisions of the Indenture, (ii) it shall have given to the Collateral Agent not less than 10
days’ prior written notice of its intention so to do, clearly describing such transaction and
providing such other information in connection therewith as the Collateral Agent may reasonably
request, (iii) with respect to such transaction, such Pledgor shall have taken all action to
maintain the

H-8

 

security interest of the Collateral Agent in the Collateral intended to be granted and
perfected hereby at all times fully perfected and in full force and effect and (iv) the Collateral
Agent shall have been provided with evidence that all other actions (including, without limitation,
the payment of all filing fees and taxes, if any, payable in connection with such actions) have
been taken, in order to perfect (and maintain the perfection and priority of) the security interest
granted hereby.

          SECTION 14.05. Location of Inventory and Equipment. All Inventory and Equipment held
on the date hereof by each Pledgor is located at one of the locations shown on the Schedules to
Section 2 of the Perfection Certificate. No Pledgor shall establish a new location for Equipment
and/or Inventory that shall cause the security interest of the Collateral Agent in such Equipment
and/or Inventory granted hereby (x) to be unperfected or (y) to lose its priority.

          SECTION 14.06. Recourse. This Agreement is made with full recourse to each Pledgor
and pursuant to and upon all the warranties, representations, covenants and agreements on the part
of such Pledgor contained herein or in the Senior Secured Notes or the Indenture, and otherwise in
writing in connection herewith or therewith.

          SECTION 14.07. Trade Names; Change of Name. No Pledgor has or operates in any
jurisdiction under, or in the preceding five years has not had or has not operated in any
jurisdiction under, any trade names, fictitious names or other names (including, without
limitation, any names of divisions or operations), except its legal name and such other trade,
fictitious or other names as are listed on Schedules 1(b) and 1(c) to the Perfection Certificate.
No Pledgor shall change its legal name or assume or operate in any jurisdiction under any trade,
fictitious or other name in any manner which might make any financing statement or continuation
statement filed in connection therewith seriously misleading within
the meaning of Section 9-507 of the UCC except those names listed on Schedule 1(b) and
1(c) to the Perfection Certificate and new names (including, without limitation, any names of
divisions or operations) established in accordance with the last sentence of this Section 2.7. No
Pledgor shall assume or operate in any jurisdiction under any new trade, fictitious or other name
that would make any financing statement or continuation statement filed in connection therewith,
Section 9-507 of the UCC until (i) it shall have given
to the Collateral Agent not less than 10 days’ prior written notice of its intention so to do,
clearly describing such new name and the jurisdictions in which such new name shall be used and
(ii) with respect to such new name, it shall have taken all reasonable action to maintain the
security interest of the Collateral Agent in the Collateral intended to be granted hereby at all
times fully perfected and in full force and effect.

          SECTION 14.08. Benefit to Laundry Corp. Laundry Corp. will receive substantial
benefits from the proceeds of the Senior Secured Notes.

H-9

 

ARTICLE FIFTEEN

SPECIAL PROVISIONS CONCERNING

ACCOUNTS; CONTRACT RIGHTS; INSTRUMENTS

AND CERTAIN OTHER TYPES OF COLLATERAL

          SECTION 15.01. Additional Representations and Warranties. As of the time when each of
its Accounts arises, each Pledgor shall be deemed to have represented and warranted that such
Account, and all records, papers and documents relating thereto (if any) are genuine and in all
material respects what they purport to be, and that all papers and documents (if any) relating
thereto to the actual knowledge of such Pledgor (i) will represent the genuine, legal, valid and
binding obligation of the account debtor evidencing indebtedness unpaid and owed by the respective
account debtor arising out of the performance of labor or services or the sale or lease and
delivery of the merchandise listed therein, or both, (ii) will be the only original writings
evidencing and embodying such obligation of the account debtor named therein (other than copies
created for general accounting purposes), (iii) will evidence true and valid obligations,
enforceable in accordance with their respective terms and (iv) will be in compliance and will
conform in each case in all material respects with all applicable federal, state and local laws and
applicable laws of any relevant foreign jurisdiction.

          SECTION 15.02. Maintenance of Records. Each Pledgor will keep and maintain at its own
cost and expense satisfactory and complete records of its Accounts and Contracts, including, but
not limited to, the originals or copies of all documentation (including each Contract) with respect
thereto, records of all payments received, all credits granted thereon, all merchandise returned
and all other dealings therewith, and such Pledgor will make the same available on such Pledgor’s
premises to the Collateral Agent for inspection, at such Pledgor’s own cost and expense, at any and
all reasonable
times; provided, however, if no Event of Default has occurred and is then
continuing, the Collateral Agent shall give such Pledgor reasonable prior written notice of any
such inspection. Upon the occurrence and during the continuance of an Event of Default and upon
the reasonable request of the Collateral Agent, each Pledgor shall, at its own cost and expense,
deliver all tangible evidence of its Accounts and Contract Rights (including, without limitation,
all documents evidencing the Accounts and all Contracts) and such books and records to the
Collateral Agent or to its representatives (copies of which evidence and books and records may be
retained by such Pledgor). Upon the occurrence and during the continuance of an Event of Default
and the delivery by the Collateral Agent of notice thereof to the Company in accordance with
Article Six of the Indenture to the extent such notice is required pursuant to Article Six of the
Indenture, if the Collateral Agent so directs, each Pledgor shall legend its Accounts and the
Contracts, as well as all books, records and documents of such Pledgor evidencing or pertaining to
such Accounts and Contracts with an appropriate reference to the fact that such Accounts and
Contracts have been assigned to the Collateral Agent and that the Collateral Agent has a security
interest therein.

     SECTION 15.03. Direction to Account Debtors; Contracting Parties, etc. Upon the
occurrence and during the continuance of an Event of Default and delivery of notice thereof to the
Company in accordance with Article Six of the Indenture to the extent such notice

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is required
pursuant to Article Six of the Indenture, and if the Collateral Agent so directs each Pledgor, to
the extent permitted by applicable law, each Pledgor agrees (x) to cause all payments on account of
the Accounts and Contracts to be made directly to the Cash Collateral Account, (y) that the
Collateral Agent may directly notify the obligors with respect to any Accounts and/or under any
Contracts to make payments with respect thereto as provided in preceding clause (x), and (z) that
the Collateral Agent may enforce collection of any such Accounts and Contracts and may adjust,
settle or compromise the amount of payment thereof, in the same manner and to the same extent as
such Pledgor. Without notice to or assent by any Pledgor, the Collateral Agent may apply any or
all amounts then in, or thereafter deposited in, the Cash Collateral Account which application
shall be effected in the manner provided in Section 7.4 of this Agreement. The reasonable costs
and expenses (including reasonable attorneys’ fees) of collection, whether incurred by any Pledgor
or the Collateral Agent, shall be borne by the Pledgors.

          SECTION 15.04. Modification of Terms, etc. Except as otherwise provided in the
Indenture, no Pledgor shall rescind or cancel any indebtedness evidenced by any Account or under
any Contract, or modify any term relating to such indebtedness or make any adjustment with respect
thereto, or extend or renew the same, or compromise or settle any material dispute, claim, suit or
legal proceeding relating thereto, or sell any Account or Contract, or interest therein, except as
permitted by Section 3.5. Except as otherwise provided in the Indenture, each Pledgor will duly
fulfill all obligations on its part to be fulfilled under or in connection with the Accounts and
Contracts and will do nothing to impair in any material respect the rights of the Collateral Agent
in the Accounts or Contracts. Notwithstanding anything to the contrary in this Agreement, each
Pledgor may forgive or cancel the indebtedness described in Schedule 12 to the Perfection
Certificate and owed to it as of the date hereof, together with interest thereon, by any employee,
officer or any of its Restricted Subsidi
aries consistent with past practice of Laundry Corp., in each case to the extent not
prohibited by the Indenture.

          SECTION 15.05. Collection. Each Pledgor shall endeavor to cause to be collected from
the account debtor named in each of its Accounts or obligor under any of its Contracts, as and when
due (including, without limitation, amounts which are delinquent, such amounts to be collected in
accordance with generally accepted lawful collection procedures) any and all amounts owing under or
on account of such Account or Contract, and apply forthwith upon receipt thereof all such amounts
as are so collected to the outstanding balance of such Account or under such Contract, except that,
unless an Event of Default has occurred and is continuing and the Collateral Agent has delivered
notice thereof to the Company in accordance with Article Six of the Indenture to the extent such
notice is required pursuant to Article Six of the Indenture, and unless such notice prohibits the
following, such Pledgor may allow in the ordinary course of business as adjustments to amounts
owing under its Accounts and Contracts (i) an extension or renewal of the time or times of payment,
or settlement for less than the total unpaid balance, as such Pledgor finds appropriate in
accordance with sound business judgment and (ii) a refund or credit due as a result of returned or
damaged merchandise or improperly performed services. The reasonable costs and expenses
(including, without limitation, reasonable attorneys’ fees) of collection, whether incurred by any
Pledgor or the Collateral Agent, shall be borne by the Pledgors.

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          SECTION 15.06. Further Actions. Each Pledgor will, at its own expense, make, execute,
endorse, acknowledge, file and/or deliver to the Collateral Agent from time to time such vouchers,
invoices, schedules, confirmatory assignments, conveyances, financing statements, transfer
endorsements, powers of attorney, certificates, reports and other assurances or instruments and
take such further steps relating to its Accounts, Contracts, Instruments and other property or
rights covered by the security interest hereby granted as may be required hereunder or as the
Collateral Agent may reasonably require.

          SECTION 15.07. Special Provisions Regarding Certain Types of Collateral.

     (a) Deposit Accounts, Securities Accounts and Commodity Accounts.
(i) Each Pledgor hereby represents, warrants and covenants that (A) it does not
maintain any Securities Accounts or Commodity Accounts with any Securities Intermediary or
Commodity Intermediary other than the Securities Accounts and/or Commodity Accounts listed
in Schedule 16 to the Perfection Certificate and (B) it shall not in the future maintain any
Securities Accounts or Commodity Accounts except with any Securities Intermediary or
Commodity Intermediary in accordance with the provisions of this Section 3.7. Each Pledgor
hereby represents and warrants that it does not maintain any Deposit Accounts other than the
Deposit Accounts listed in Schedule 16 to the Perfection Certificate (the “Existing
Deposit Accounts”). Each Pledgor agrees that, consistent with its ex
isting practice, it shall (i) deposit all amounts collected in the ordinary course of
its business into the Existing Deposit Accounts and (ii) ensure that no funds in an
aggregate amount exceeding $500,000 are on deposit for more than five Business Days in any
Deposit Account with respect to which the Collateral Agent does not have control and that no
funds in an aggregate amount exceeding $3,000,000 are on deposit for more than five Business
Days in all Deposit Accounts with respect to which the Collateral Agent does not have
control. No Pledgor shall hereafter establish and maintain any Deposit Account, Securities
Account or Commodity Account with any Depository Bank, Securities Intermediary or Commodity
Intermediary, respectively, unless (1) such Pledgor shall have given the Collateral Agent 10
days’ prior written notice of its intention to establish such new Deposit Account,
Securities Accounts or Commodity Accounts with such Depository Bank, Securities Intermediary
or Commodity Intermediary, (2) such Depository Bank, Securities Intermediary or Commodity
Intermediary shall be reasonably acceptable to the Collateral Agent and (3) in the case of
a new Deposit Account, Securities Account or Commodity Account, the Pledgor shall have used
commercially reasonable efforts to cause such Depository Bank, Securities Intermediary or
Commodity Intermediary to enter into a Control Agreement. Each Pledgor shall accept any
cash and Investment Property in trust for the benefit of the Collateral Agent and within one
(1) Business Day of actual receipt thereof, deposit any cash or Investment Property and any
new securities, instruments, documents or other property by reason of ownership of the
Investment Property received by it into a Deposit Account, Securities Account or Commodity
Account subject to Collateral Agent’s control.

     Each Pledgor hereby acknowledges and agrees that notwithstanding any provisions hereof
or any other circumstance to the contrary, the Pledgors will use commercial

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reasonable
efforts to cause the Collateral Agent at all times to (A) have “control” (as defined in
Section 8-106 of the UCC) of all Investment Property, as confirmed in one or more Control
Agreements in respect thereof, and (B) be authorized to direct the applicable Securities
Intermediary or Commodity Intermediary with respect to such Investment Property to comply
without further consent of such Pledgor or any investment manager or any other Person acting
or purporting to act for any Pledgor being required, with all Entitlement Orders originated
by the Collateral Agent with respect to the Investment Property. The Collateral Agent
hereby agrees that it shall not issue any Entitlement Orders to any Securities Intermediary
or Commodity Intermediary in respect of the Investment Property except in connection with
the Collateral Agent’s exercise of remedies upon the occurrence of an Event of Default.

     (i) Each Pledgor hereby acknowledges and agrees that notwithstanding any provisions
hereof or any other circumstance to the contrary, the Pledgors will use commercially
reasonable efforts to cause the Collateral Agent at all times to (A) have “control” (as
defined in Section 9-104 of the UCC) of all Deposit Accounts, as confirmed in the Control
Agreement in respect thereof, and (B) be authorized to direct the institution maintaining
such Deposit Account to comply without further consent of any Pledgor or any person acting
or purporting to act for any Pledgor being required, with all instructions originated by the
Collateral Agent directing disposition of the funds in such Deposit
Account. The Collateral Agent hereby agrees that it shall not issue any such
instructions to the institution maintaining the Deposit Account except in connection with
the Collateral Agent’s exercise of remedies upon the occurrence of an Event of Default.

     (ii) So long as no Event of Default has occurred and is continuing, each Pledgor may
trade, sell, exchange, lend, apply or transfer funds or Investment Property from any Deposit
Account, Securities Account or Commodity Account, in each case to the extent not
inconsistent with the other provisions hereof or the provisions of the Indenture; and

     (iii) As between the Collateral Agent and each Pledgor, such Pledgor shall bear the
investment risk with respect to the Investment Property, and the risk of loss of, damage to,
or the destruction of any cash or the Investment Property, whether in the possession of, or
maintained as a security entitlement or deposit by, or subject to the control of, the
Collateral Agent, a Securities Intermediary, a Commodity Intermediary or a Depository Bank,
such Pledgor or any other Person; provided, however, that nothing contained
in this Section 3.7(a)(v) shall release or relieve any Securities Intermediary, Commodity
Intermediary or Depository Bank of its duties and obligations to such Pledgors or any other
Person under the applicable Control Agreement or under applicable law. Each Pledgor shall
promptly pay all charges and fees of whatever kind or nature with respect to the cash or
Investment Property pledged by it or under this Agreement. In the event such Pledgor shall
fail to make such payment contemplated in the immediately preceding sentence, the Collateral
Agent may do so for the account of such Pledgor and such Pledgor shall promptly reimburse
and indemnify the Collateral Agent from all costs and expenses

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incurred by the Collateral
Agent under this Section 3.7(a)(v) in accordance with Section 8.1 hereof.

     (b) Instruments and Tangible Chattel Paper. If any amount payable under or in
connection with any of the Collateral shall be evidenced by any Instrument or Tangible
Chattel Paper in an amount in excess of $250,000, the Pledgor acquiring such Instrument or
Tangible Chattel Paper shall forthwith endorse, assign and deliver the same to the
Collateral Agent, accompanied by such instruments of transfer or assignment duly executed in
blank. As of the date hereof, such Instruments and Tangible Chattel Paper are set forth on
Schedule 12 to the Perfection Certificate.

     (c) Electronic Chattel Paper and Transferable Records. If any amount payable
under or in connection with any of the Pledged Collateral shall be evidenced by any
Electronic Chattel Paper or any “transferable record,” as that term is defined in Section
201 of the Federal Electronic Signatures in Global and National Commerce Act, or in Section
16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction, in
each case in an amount in excess of $250,000, the Pledgor acquiring such Electronic Chattel
Paper or Transferable record shall promptly notify the Collateral Agent thereof and shall
take such action as is necessary to vest in the Collateral Agent control under UCC Section
9-105 of such Electronic Chattel Paper or control under Section 201 of the Federal
Electronic Signatures in Global and National Commerce Act or, as the case may be, Section 16
of the Uniform Electronic Transactions Act, as so in effect
in such jurisdiction, of such transferable record. The Collateral Agent agrees with
each Pledgor that the Collateral Agent will permit such Pledgor to make alterations to the
Electronic Chattel Paper or transferable record permitted under UCC Section 9-105 or, as the
case may be, Section 201 of the Federal Electronic Signatures in Global and National
Commerce Act or Section 16 of the Uniform Electronic Transactions Act for a party in control
to allow without loss of control, unless an Event of Default has occurred and is continuing
or would occur after taking into account any action by any Pledgor with respect to such
electronic chattel paper or transferable record.

     (d) Letter-of-Credit Rights. If any Pledgor is at any time a beneficiary under
a Letter of Credit now or hereafter issued in favor of such Pledgor in an amount in excess
of $250,000, such Pledgor shall promptly notify the Collateral Agent thereof and arrange for
the issuer and any confirmer of such Letter of Credit to consent to an assignment to the
Collateral Agent of the proceeds of any drawing under such Letter of Credit.

     (e) Commercial Tort Claims. If any Pledgor shall at any time hold or acquire a
Commercial Tort Claim in an amount in excess of $250,000, such Pledgor shall immediately
notify the Collateral Agent in writing signed by such Pledgor of the brief details thereof
and grant to the Collateral Agent in such writing a security interest therein and in the
Proceeds thereof, all upon the terms of this Agreement.

     (f) Motor Vehicles. At any time after the occurrence and during the
continuance of an Event of Default, each Pledgor shall deliver to the Collateral Agent
originals of the certificates of title or ownership for the motor vehicles (and any other
Equipment

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     covered by Certificates of Title or ownership owned by it) with the Collateral
Agent listed as lienholder therein.

     (g) Intercompany Note and Intercompany Note Guaranty. No Pledgor shall:

     (i) sell, convey, transfer or assign (or otherwise engage in any other transfer for
value of) the Intercompany Note or Intercompany Note Guaranty or any of its interest
therein;

     (ii) amend, supplement, or waive any provision of the Intercompany Note or the
Intercompany Note Guaranty, other than any amendment, supplement or waiver which would not
have an adverse effect on the interests of the Collateral Agent or any other Secured
Creditor, the Indenture or the Senior Secured Notes, or subordinate its rights under the
Intercompany Note or the Intercompany Note Guaranty to the rights of any other creditor of
Coinmach Corp.;

     (iii) compromise, reduce, forgive or release or extend the time for payment of any
obligation of Coinmach Corp. under the Intercompany Note or of any Intercompany Note
Guarantor under the Intercompany Note Guaranty; or

     (iv) take or omit to take any action the taking or the omission of which would result
in any material impairment or alteration of any obligation of Coinmach Corp. under
the Intercompany Note or any Intercompany Note Guarantor under the Intercompany Note
Guaranty.

ARTICLE SIXTEEN

SPECIAL PROVISIONS CONCERNING MARKS

          SECTION 16.01. Additional Representations and Warranties. Each Pledgor represents and
warrants that, as of the date hereof, it is the true and lawful exclusive owner of its Trademarks
listed in Schedule 14(a) to the Perfection Certificate and that said listed Trademarks include all
the United States federal registrations or applications registered in the United States Patent and
Trademark Office. Each Pledgor represents and warrants that, to the best of its knowledge, it owns
or is licensed to use or is not prohibited from using all Trademarks that it uses. Each Pledgor
further warrants that it is aware of no third party claim that any aspect of such Pledgor’s present
or contemplated business operations infringes or will infringe any Trademark. Each Pledgor
represents and warrants that it is the owner of record of all United States registrations and
applications listed in Schedule 14(a) to the Perfection Certificate and that said registrations are
valid, subsisting, have not been canceled and that such Pledgor is not aware of any third-party
claim that any of said registrations is invalid or unenforceable. Each Pledgor hereby grants to
the Collateral Agent an absolute power of attorney to sign, upon the occurrence and during the
continuance of an Event of Default and delivery of notice thereof to the Company in accordance with
Article Six of the Indenture to the extent such notice is required pursuant to Article Six of the
Indenture, and delivery of notice of its intention to exercise any or all of its rights under this
Section 4.1, any document which may be required by the United States Patent

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and Trademark Office in
order to effect an absolute assignment of all right, title and interest in each Trademark and
associated Goodwill, and record the same.

          SECTION 16.02. Licenses and Assignments. Other than the license agreements listed on
Schedule 14(a) to the Perfection Certificate, nonexclusive license agreements and any extensions or
renewals thereof, each Pledgor hereby agrees not to divest itself of any right under any
Significant Trademark.

          SECTION 16.03. Infringements. Each Pledgor agrees, promptly upon learning thereof, to
notify the Collateral Agent in writing of the name and address of, and to furnish such pertinent
information that may be available with respect to, any party who may be infringing or otherwise
violating any of such Pledgor’s rights in and to any Significant Trademark, or with respect to any
party claiming that such Pledgor’s use of any Significant Trademark violates any property right of
that party, in each case to the extent that such Pledgor reasonably believes that such infringement
or violation is material to its business. Each Pledgor further agrees, if consistent with good
business practice and unless otherwise agreed by the Collateral Agent, diligently to prosecute any
Person infringing any Significant Trademark to the extent that such Pledgor reasonably believes
that such infringement is material to its business.

          SECTION 16.04. Preservation of Trademarks. Each Pledgor agrees to use its Significant
Marks in interstate commerce during the time in which this Agreement is in effect, sufficiently to
preserve such Significant Trademarks as trademarks or service marks registered under the laws of
the United States.

          SECTION 16.05. Maintenance of Registration. Each Pledgor shall, at its own expense,
diligently process all documents required by the Trademark Act of 1946, 15 U.S.C. §§ 1051 et seq.
to maintain trademark registration, including but not limited to affidavits of use and applications
for renewals of registration in the United States Patent and Trademark Office for all of its
Significant Trademarks pursuant to 15 U.S.C. §§ 1058(a), 1059 and 1065, and shall pay all fees and
disbursements in connection therewith and shall not abandon any such filing of affidavit of use or
any such application of renewal prior to the exhaustion of all reasonable administrative and
judicial remedies.

          SECTION 16.06. Future Registered Marks. If any Trademark registration issues
hereafter to any Pledgor as a result of any application now or hereafter pending before the United
States Patent and Trademark Office, within thirty (30) days of receipt of such certificate such
Pledgor shall deliver a copy of such certificate, and a grant of security interest in such
Trademark to the Collateral Agent, confirming the grant thereof hereunder, the form of such
confirmatory grant to be substantially the same as the form hereof.

          SECTION 16.07. Remedies. If an Event of Default shall occur and be continuing, the
Collateral Agent may but is not obligated, upon delivery to the Company of written notice thereof
in accordance with Article Six of the Indenture to the extent such notice is required by Article
Six of the Indenture, and delivery of notice of its intention to exercise any or all of its rights
under this Section 4.7, take any or all of the following actions: (i) declare the entire right,
title and interest of each Pledgor in and to each of the Trademarks and the Goodwill of the

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business associated therewith, together with all trademark rights and rights of protection to the
same, vested, in which event such rights, title and interest shall immediately vest, in the
Collateral Agent for the benefit of the Secured Creditors, in which case the Collateral Agent shall
be entitled to exercise the power of attorney referred to in Section 4.1 to execute, cause to be
acknowledged and notarized and record said absolute assignment with the applicable agency; (ii)
take and use or sell the Trademarks and the Goodwill of each Pledgor’s business symbolized by the
Trademarks and the right to carry on the business and use the assets of each Pledgor in connection
with which the Trademarks have been used; and (iii) direct each Pledgor to refrain, in which event
such Pledgor shall refrain, from using the Trademarks in any manner whatsoever, directly or
indirectly, and, if requested by the Collateral Agent, change such Pledgor’s corporate name to
eliminate therefrom any use of any Trademark and execute such other and further documents necessary
to further confirm this and to transfer ownership of the Trademarks and registrations and any
pending trademark application in
the United States Patent and Trademark Office or any equivalent government agency or office in
any foreign jurisdiction to the Collateral Agent.

ARTICLE SEVENTEEN

SPECIAL PROVISIONS CONCERNING

PATENTS AND COPYRIGHTS

          SECTION 17.01. Additional Representations and Warranties. Each Pledgor represents and
warrants that to the best of its knowledge, as of the date hereof, it is the true and lawful
exclusive owner of all rights in its Patents listed in Schedule 14(a) to the Perfection Certificate
and in the Copyrights listed in Schedule 14(b) to the Perfection Certificate hereto, that said
Patents include all the United States patents and applications for United States patents that such
Pledgor now owns and that said Copyrights constitute all the United States Copyrights registered
with the United States Copyright Office and applications for United States copyrights that the
Pledgor now owns. Each Pledgor represents and warrants that to the best of its knowledge, as of
the date hereof, it owns or is licensed to practice under all Patents and Copyrights that it now
uses or practices under. Such Pledgor further warrants that it is aware of no third party claim
that any aspect of such Pledgor’s present or contemplated business operations infringes or will
infringe any Patent or any Copyright. Each Pledgor hereby grants to the Collateral Agent an
absolute power of attorney to sign, upon the occurrence and during the continuance of any Event of
Default and delivery of notice thereof to the Company in accordance with Article Six of the
Indenture to the extent such notice is required pursuant to Article Six of the Indenture, and
delivery of notice of its intention to exercise any or all of its rights under this Section 5.1,
any document which may be required by the United States Patent and Trademark Office or the United
States Copyright Office in order to effect an absolute assignment of all right, title and interest
in each Patent and Copyright, and record the same.

          SECTION 17.02. Licenses and Assignments. Other than the license agreements listed on
Schedules 14(a) and 14(b) to the Perfection Certificate, nonexclusive license agreements and any
extensions or renewals thereof, each Pledgor hereby agrees not to divest itself of any right under
any Significant Patent or Significant Copyright.

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          SECTION 17.03. Infringements. Each Pledgor agrees, promptly upon learning thereof, to
furnish the Collateral Agent in writing with all pertinent information available to such Pledgor
with respect to any infringement or other violation of such Pledgor’s rights in any Significant
Patent or Significant Copyright, or with respect to any claim that practice of any Significant
Patent or Significant Copyright violates any property right of that party, in each case to the
extent that such Pledgor reasonably believes that such infringement or violation is material to its
business. Each Pledgor further agrees, consistent with good business practice to use its
comercially reasonable efforts to prosecute any Person infringing any Significant Patent or
Significant Copyright to the extent that
such Pledgor reasonably believes that such infringement is material to its business, which
consent shall not be unreasonably withheld.

          SECTION 17.04. Maintenance of Patents. At its own expense, each Pledgor shall make
timely payment of all post-issuance fees required pursuant to 15 U.S.C. § 41 to maintain in force
rights under each Significant Patent.

          SECTION 17.05. Prosecution of Patent Application. At its own expense, each Pledgor
shall diligently prosecute all applications for Significant Patents listed in Schedule 14(a) to the
Perfection Certificate and shall not abandon any such application prior to exhaustion of all
reasonable administrative and judicial remedies.

          SECTION 17.06. Other Patents and Copyrights. Within 30 days of acquisition of any
Patent or Copyright, or of filing of an application for any Patent or Copyright, each Pledgor shall
deliver to the Collateral Agent a copy of such Patent or Copyright or such application, as the case
may be, with a grant of security as to such Patent or Copyright, as the case may be, confirming the
grant thereof hereunder, the form of such confirmatory grant to be substantially the same as the
form hereof.

          SECTION 17.07. Remedies. If an Event of Default shall occur and be continuing and
Collateral Agent has delivered notice thereof to the Company in accordance with Article Six of the
Indenture to the extent such notice is required pursuant to Article Six of the Indenture, the
Collateral Agent may by written notice to the Company, take any or all of the following actions:
(i) declare the entire right, title, and interest of each Pledgor in each of its Patents and
Copyrights vested, in which event such right, title, and interest shall immediately vest in the
Collateral Agent for the benefit of the Secured Creditors, in which case the Collateral Agent shall
be entitled to exercise the power of attorney referred to in Section 5.1 to execute, cause to be
acknowledged and notarized and record said absolute assignment with the applicable agency; (ii)
take and practice or sell the Patents and Copyrights; and (iii) direct each Pledgor to refrain, in
which event such Pledgor shall refrain, from practicing the Patents and Copyrights directly or
indirectly, and such Pledgor shall execute such other and further documents as necessary to confirm
this and to transfer ownership of the Patents and Copyrights to the Collateral Agent for the
benefit of the Secured Creditors.

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ARTICLE EIGHTEEN

PROVISIONS CONCERNING ALL COLLATERAL

          SECTION 18.01. Protection of Collateral Agent’s Security. No Pledgor will do anything to impair in any material respect the rights of the Collateral
Agent in the Collateral. Each Pledgor will at all times keep its Inventory and Equipment insured
in favor of the Collateral Agent, at such Pledgor’s own expense to the extent and in the manner
provided in the Indenture. If such Pledgor shall fail to insure its Inventory and Equipment in
accordance with the preceding sentence, or if such Pledgor shall fail to so endorse and deposit all
policies with respect thereto, the Collateral Agent shall have the right (but shall be under no
obligation), upon prior notice to such Pledgor, to procure such insurance and such Pledgor agrees
to promptly reimburse the Collateral Agent for all reasonable costs and expenses of procuring such
insurance. The Collateral Agent shall, at the time such proceeds of such insurance are distributed
to the Secured Creditors, apply such proceeds in accordance with Section 7.4 or as otherwise
provided in the Indenture. Each Pledgor assumes all liability and responsibility in connection
with the Collateral acquired by it and the liability of such Pledgor to pay the Obligations shall
in no way be affected or diminished by reason of the fact that such Collateral may be lost,
destroyed, stolen, damaged or for any reason whatsoever unavailable to such Pledgor unless such
loss or damage is finally judicially determined to have been incurred by reason of the gross
negligence or willful misconduct of any Secured Creditor or any agent of any Secured Creditor or
the failure of a Secured Creditor, in exercising its remedies hereunder, to act in a commercially
reasonable manner.

          SECTION 18.02. Warehouse Receipts Non-negotiable. Each Pledgor agrees that if any
warehouse receipt or receipt in the nature of a warehouse receipt is issued with respect to any of
its Inventory, such warehouse receipt or receipt in the nature thereof shall not be “negotiable”
(as such term is used in Section 7-104 of the Uniform Commercial Code as in effect in any relevant
jurisdiction or under other relevant law).

          SECTION 18.03. Further Actions. Each Pledgor will, at its own expense, make, execute,
endorse, acknowledge, file and/or deliver to the Collateral Agent from time to time such lists,
descriptions and designations of its Collateral, warehouse receipts, receipts in the nature of
warehouse receipts, bills of lading, documents of title, vouchers, invoices, schedules,
confirmatory assignments, conveyances, financing statements, transfer endorsements, powers of
attorney, certificates, reports and other assurances or instruments and take such further steps
relating to the Collateral and other property or rights covered by the security interest hereby
granted, which is necessary or which the Collateral Agent may reasonably deem necessary or
advisable to perfect, preserve or protect its security interest in the Collateral in accordance
with the terms hereof.

          SECTION 18.04. Financing Statements. Each Pledgor agrees to execute and deliver to
the Collateral Agent such financing statements, in form reasonably acceptable to the Collateral
Agent, as the Collateral Agent may from time to time reasonably request or as are necessary to
establish and maintain a valid, enforceable, first priority perfected security interest (subject to
Permitted Liens) in the Collateral as provided herein and the other rights and security
contemplated hereby all in accordance with the Uniform Commercial Code as enacted in any and

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all
applicable jurisdictions or any other ap
plicable law. Each Pledgor will pay any applicable filing fees, recordation taxes and related
expenses. Each Pledgor authorizes the Collateral Agent to file any such financing statements
without the signature of such Pledgor where permitted by law including, without limitation, the
filing of financing statements describing the Collateral as “all assets in which the Debtor now
owns or hereafter acquires rights.”

ARTICLE NINETEEN

REMEDIES UPON OCCURRENCE OF EVENT OF DEFAULT

          SECTION 19.01. Remedies; Obtaining the Collateral Upon Default. Each Pledgor agrees
that, if any Event of Default shall have occurred and be continuing and the Collateral Agent shall
have delivered to the Company notice thereof in accordance with Article Six of the Indenture to the
extent such notice is required pursuant to Article Six of the Indenture, and delivery of notice of
its intention to exercise any or all of its rights under this Section 7.1, then and in every such
case, subject to any mandatory requirements of applicable law then in effect, the Collateral Agent,
in addition to any rights now or hereafter existing under applicable law, shall have all rights as
a secured creditor under the Uniform Commercial Code in all applicable jurisdictions and may, but
without any obligation, also (subject to laws and regulations governing the national security of
the United States):

          (a) personally, or by agents or attorneys, immediately retake possession of the Collateral or
any part thereof, from such Pledgor or any other Person who then has possession of any part thereof
with or without notice or process of law, and for that purpose may enter upon such Pledgor’s
premises where any of the Collateral is located and remove the same and use in connection with such
removal any and all services, supplies, aids and other facilities of such Pledgor; possession of
machinery shall, however, be subject to the terms of the Location Leases; and

          (b) instruct the obligor or obligors on any agreement, instrument or other obligation
(including, without limitation, the Accounts and the Contracts) constituting the Collateral to make
any payment required by the terms of such agreement, instrument or other obligation directly to the
Collateral Agent and may exercise any and all remedies of such Pledgor in respect of such
Collateral; and

          (c) withdraw all monies, securities and instruments in the Cash Collateral Account for
application to the Obligations in accordance with Section 7.4; and

          (d) sell, assign or otherwise liquidate, or direct such Pledgor to sell, assign or otherwise
liquidate, any or all of its Collateral or any part thereof, and take possession of the proceeds of
any such sale or liquidation; and

          (e) take possession of the Collateral or any part thereof, by directing such Pledgor in
writing to deliver the same to the Collateral Agent at any commercially reasonable
place or places designated by the Collateral Agent, in which event such Pledgor shall at its
own expense:

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                    (i) forthwith cause the Collateral pledged by it to be moved to the place or
places so designated by the Collateral Agent and there delivered to the Collateral
Agent, and

                    (ii) store and keep any Collateral so delivered to the Collateral Agent at such
place or places pending further action by the Collateral Agent as provided in
Section 7.2, and

                    (iii) while the Collateral shall be so stored and kept, provide such guards and
maintenance services as shall be necessary to protect the same and to preserve and
maintain them in good condition; and

     (f) license or sublicense (to the extent not in violation of the license), whether on an
exclusive or nonexclusive basis, any Trademarks, Patents or Copyrights included in the Collateral;

it being understood that such Pledgor’s obligation so to deliver the Collateral is of the essence
of this Agreement and that, accordingly, upon application to a court of equity having jurisdiction,
the Collateral Agent shall be entitled to a decree requiring specific performance by such Pledgor
of said obligation.

          SECTION 19.02. Remedies; Disposition of the Collateral. Any Collateral repossessed by
the Collateral Agent under or pursuant to Section 7.1 and any other Collateral whether or not so
repossessed by the Collateral Agent, may be sold, assigned, leased or otherwise disposed of under
one or more contracts or as an entirety, and without the necessity of gathering at the place of
sale the property to be sold, and in general in such manner, at such time or times, at such place
or places and on such terms as the Collateral Agent may, in compliance with any mandatory
requirements of applicable law, determine. Any of the Collateral may be sold, leased or otherwise
disposed of, in the condition in which the same existed when taken by the Collateral Agent or after
any commercially reasonable overhaul or repair made by or at the direction of the Collateral Agent.
To the extent permitted by any requirement of law, the Collateral Agent and the Secured Creditors
or any of their respective Affiliates may be the purchaser, licensee, assignee or recipient of any
or all of the Collateral at any such sale and shall be entitled, for the purpose of bidding and
making settlement or payment of the purchase price for all or any portion of the Collateral sold,
assigned or licensed at such sale, to use and apply any of the Obligations owed to such Person as a
credit on account of the purchase price of any Collateral payable by such Person at such sale.
Each purchaser, assignee, licensee or recipient at any such sale shall acquire the property sold,
assigned or licensed absolutely free from any claim or right on the part of any Pledgor, and each
Pledgor hereby waives, to the fullest extent permitted by law, all rights of redemption, stay
and/or appraisal which it now has or may at any time in the future have under any rule of law or
statute now existing or hereafter enacted. The Collateral Agent shall not be obligated to make any
sale of Collateral regardless of notice of
sale having been given. The Collateral Agent may adjourn any public or private sale from time
to time by announcement at the time and place fixed therefor, and such sale may, without further
notice, be made at the time and place to which it was so adjourned. Each Pledgor hereby waives, to
the fullest extent permitted by law, any claims against the Collateral Agent arising by reason of
the

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fact that the price at which any Collateral may have been sold, assigned or licensed at such a
private sale was less than the price which might have been obtained at a public sale, even if the
Collateral Agent accepts the first offer received and does not offer such Pledged Collateral to
more than one offeree. Each Pledgor acknowledges and agrees that, to the extent notice of sale
shall be required by law, ten days’ notice to such Pledgor of the time and place of any public sale
or of the time after which any private sale or other intended disposition is to take place shall be
commercially reasonable notification of such matters. No notification need be given to any Pledgor
if it has signed, after the occurrence of an Event of Default, a statement renouncing or modifying
any right to notification of sale or other intended disposition. Each Pledgor agrees to do or
cause to be done all such other acts and things as may be reasonably necessary to make such sale or
sales of all or any portion of the Collateral valid and binding and in compliance with any and all
applicable laws, regulations, orders, writs, injunctions, decrees or awards of any and all courts,
arbitrators or governmental instrumentalities, domestic or foreign, having jurisdiction over any
such sale or sales, all at such Pledgor’s reasonable expense.

          SECTION 19.03. Waiver of Claims. Except as otherwise provided in this Agreement, EACH
PLEDGOR HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, NOTICE AND JUDICIAL HEARING IN
CONNECTION WITH THE COLLATERAL AGENT’S TAKING POSSESSION OR THE COLLATERAL AGENT’S DISPOSITION OF
ANY OF THE COLLATERAL, INCLUDING, WITHOUT LIMITATION, ANY AND ALL PRIOR NOTICE AND HEARING FOR ANY
PREJUDGMENT REMEDY OR REMEDIES AND ANY SUCH RIGHT WHICH SUCH PLEDGOR WOULD OTHERWISE HAVE UNDER THE
CONSTITUTION OR ANY STATUTE OF THE UNITED STATES OR OF ANY STATE, and each Pledgor hereby further
waives, to the extent permitted by law:

          (a) all damages occasioned by such taking of possession except any damages which are the
direct result of the Collateral Agent’s gross negligence or willful misconduct or failure to act,
in exercising its remedies hereunder, in a commercially reasonable manner;

          (b) all other requirements as to the time, place and terms of sale or other requirements with
respect to the enforcement of the Collateral Agent’s rights hereunder; and

          (c) all rights of redemption, appraisement, valuation, stay, extension or moratorium now or
hereafter in force under any applicable law in order to prevent or delay the enforcement of this
Agreement or the absolute sale of the Collateral or any portion thereof, and each Pledgor, for
itself and all who may claim under it, insofar as it or they now or hereafter lawfully may, hereby
waives the benefit of all such laws unless such action or threatened action is not commercially
reasonable.

Any sale of, or the grant of options to purchase, or any other realization upon, any Collateral
shall operate to divest all right, title, interest, claim and demand, either at law or in equity,
of each Pledgor therein and thereto, and shall be a perpetual bar both at law and in equity against
such Pledgor and against any and all Persons claiming or attempting to claim the Collateral so
sold, optioned or realized upon, or any part thereof, from, through and under such Pledgor other
than any Collateral remaining after the occurrence of the Termination Date.

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          SECTION 19.04. Application of Proceeds. (a) All moneys collected by the
Collateral Agent (or, to the extent any Pledge Agreement or any other Collateral Agreement to which
any Pledgor is a party requires proceeds of Collateral under such agreement to be applied in
accordance with the provisions of this Agreement, the pledgee or secured creditor under such other
agreement) upon any sale or other disposition of the Collateral, together with all other moneys
received by the Collateral Agent hereunder, shall be applied in the order set forth in Section 6.10
of the Indenture. Any balance of such Proceeds remaining after the occurrence of the Termination
Date, shall be paid over to the applicable Pledgor or to whomsoever may be lawfully entitled to
receive the same.

          (b) It is understood and agreed that each Pledgor shall remain liable to the extent of any
deficiency between the amount of the proceeds of the Collateral hereunder and the aggregate amount
of the Obligations, except to the extent that such proceeds are not applied by the Collateral Agent
in accordance with this Agreement and the Indenture.

          SECTION 19.05. Remedies Cumulative. Each and every right, power and remedy hereby
specifically given to the Collateral Agent shall be in addition to every other right, power and
remedy specifically given under this Agreement, the Senior Secured Notes or the Indenture or now or
hereafter existing at law or in equity, or by statute and each and every right, power and remedy
whether specifically herein given or otherwise existing may be exercised from time to time or
simultaneously and as often and in such order as may be deemed expedient by the Collateral Agent.
All such rights, powers and remedies shall be cumulative and the exercise or the beginning of
exercise of one shall not be deemed a waiver of the right to exercise of any other or others. No
delay or omission of the Collateral Agent in the exercise of any such right, power or remedy,
renewal or extension of any of the Obligations and no course of dealing between any Pledgor and the
Collateral Agent or any holder of any of the Obligations shall impair any such right, power or
remedy or shall be construed to be a waiver of any Default or Event of Default or an acquiescence
therein. No notice to or demand on any Pledgor in any case shall entitle it to any other or
further notice or demand in similar or other circumstances or constitute a waiver of any of the
rights of the Collateral Agent to any other or further action in any circumstances without notice
or demand. In the event that the Collateral Agent shall bring any suit to enforce any of its
rights hereunder and shall be entitled to judgment, then in such suit the Collateral Agent may
recover expenses, including reasonable attorneys’ fees, and the amounts thereof shall be included
in such judgment.

          SECTION 19.06. Discontinuance of Proceedings. In case the Collateral Agent shall have instituted any proceeding to enforce any right,
power or remedy under this Agreement by foreclosure, sale, entry or otherwise, and such proceeding
shall have been discontinued or abandoned for any reason or shall have been determined adversely to
the Collateral Agent, then and in every such case each Pledgor, the Collateral Agent and each
holder of any of the Obligations shall be restored to their former positions and rights hereunder
with respect to the Collateral subject to the security interest created under this Agreement, and
all rights, remedies and powers of the Collateral Agent shall continue as if no such proceeding had
been instituted.

          SECTION 19.07. Additional Remedies With Respect to Collateral Located in Louisiana.
Upon the occurrence and during the continuance of any Event of Default and

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provided that the
Collateral Agent shall have delivered to the Company notice thereof in accordance with Article Six
of the Indenture to the extent such notice is required pursuant to Article Six of the Indenture,
and delivery of notice of its intention to exercise any or all of its rights under this Section
7.7, the Collateral Agent shall be entitled to exercise any one or more of the following remedies
(all of which are cumulative):

          (a) Default Remedies. In addition to the rights of the Collateral Agent with respect
to possessory collateral, the Collateral Agent shall have the right, in accordance with the
Indenture, to accelerate payment of all amounts that each Pledgor may then owe to the Secured
Creditors, which will then entitle the Collateral Agent to foreclose under this Agreement under
ordinary or executory process procedures, or under the seizure and disposition remedies set forth
in R.S. 6:965 et, seq. (where applicable), and to cause the Collateral to be immediately seized
wherever found, and sold with or without appraisal, in regular session of court or in vacation, in
accordance with applicable Louisiana law, without the necessity of further demanding payment from
such Pledgor, or of notifying such Pledgor, or placing such Pledgor in default. For purposes of
foreclosure under Louisiana executory process procedures, such Pledgor confesses judgment and
acknowledges to be indebted to the Secured Creditors up to the full amount of the Obligations, in
principal, interest, costs, expenses, attorney’s fees and other fees and charges and all other
amounts secured by this Agreement. To the extent permitted under applicable Louisiana law, each
Pledgor additionally: (A) waives any benefit of appraisal as provided under Articles 2332, 2336,
2723 and 2724 of the Louisiana Code of Civil Procedure, and all other laws with regard to appraisal
upon judicial sale, recognizing that no appraisal shall be required prior to sale; (B) waives the
demand and three days’ delay as provided under Articles 2639 and 2721 of the Louisiana Code of
Civil Procedure; (C) waives the notice of seizure as provided under Articles 2293 and 2721 of the
Louisiana Code of Civil Procedure; (D) waives the three (3) days’ delay provided under Articles
2331 and 2722 of the Louisiana Code of Civil Procedure; and (E) waives all other benefits provided
under Articles 2331, 2722 and 2723 of the Louisiana Code of Civil Procedure and all other Articles
not specifically mentioned above. Each Pledgor further agrees that any declaration of fact made by
authentic act before a Notary Public by a person declaring that such facts are within his or her
knowledge shall constitute authentic evidence of such facts for purposes of foreclosure under
applicable Louisiana law, such Pledgor further agrees that the Collateral Agent may appoint a
keeper of the Collateral in the event of foreclosure.

          Should the Collateral for any reason be located in another state at or following any Event of
Default, each Pledgor agrees that the Collateral Agent may, in accordance with the terms hereof,
take possession of the Collateral in any manner then permitted under the laws of the state in which
the Collateral is then located or under the laws of Louisiana as then applicable, including R.S.
6:965 et  seq. Should the Collateral Agent for any reason have or acquire possession of the
Collateral at or following default, the Collateral Agent may sell the Collateral at public or
private sale as authorized by Louisiana law or the applicable provisions of the Uniform Commercial
Code or similar laws in effect in the state where the Collateral is then located. If the
Collateral Agent is required by law to give any Pledgor notice of the public or private sale of the
Collateral, each Pledgor agrees that the requirements of reasonable notice shall be met if the
Collateral Agent mails such notice to such Pledgor at the Company’s address as shown in this
Agreement at least ten (10) days before the time of any public sale or, if disposition is by
private

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sale, at least ten (10) days before the time after which private sale may occur. If public
sale is held, there will be sufficient compliance with all requirements of notice to the public by
a single publication in a newspaper in general circulation in the parish or county where the
Collateral is then located. This notice should include the time and place of sale, and a brief
description of the property to be sold.

          (b) Proceeds; Surplus; Deficiencies. The Collateral Agent shall apply any proceeds
derived or to be derived from the sale, collection or other disposition of the Collateral in the
manner provided in Section 7.4 hereof. The Pledgors shall be entitled to any surplus if one
results after application of the proceeds and the Pledgors shall remain liable for any deficiency.

ARTICLE TWENTY

INDEMNITY

          SECTION 20.01. Indemnity. (a) Each Pledgor, jointly and severally, agrees to
indemnify, reimburse and hold the Collateral Agent, each Secured Creditor and their respective
successors, assigns, employees, agents and servants (hereinafter in this Section 8.1 referred to
individually as an “Indemnitee” and collectively as “Indemnitees”) harmless from
any and all liabilities, obligations, damages, injuries, penalties, claims, demands, actions,
suits, judgments and any and all costs, expenses or disbursements (including reasonable attorneys’
fees and expenses of counsel retained by the Collateral Agent) (for the purposes of this Section
8.1 the foregoing are collectively called “expenses”) of whatsoever kind and nature imposed
on, asserted against or incurred by any of the Indemnities arising out of this Agreement, the Notes
or the Indenture or any other document executed in connection herewith and therewith or in any
other way connected with the administration of the transactions contemplated hereby and thereby or
the enforcement of any of the terms of, or the preservation of any rights under any thereof, or in
any way relating to or arising out of the manufacture, ownership, ordering, purchase, delivery,
control, acceptance, lease, financing, possession, operation, condition, sale, return or other
disposition, or use of the Collateral (including, without limitation, latent or other defects,
whether or not discoverable), any contract claim or, to the maximum extent permitted under
applicable law, the violation of the laws of any country, state or other governmental body or unit,
or any tort (including, without limitation,
claims arising or imposed under the doctrine of strict liability, or for or on account of
injury to or the death of any Person (including any Indemnitee), or property damage);
provided that no Indemnitee shall be indemnified pursuant to this Section 8.1(a) for
expenses to the extent finally judicially determined to have been incurred by reason of the gross
negligence or willful misconduct of such Indemnitee. Each Pledgor agrees that upon written notice
by any Indemnitee of the assertion of such a liability, obligation, damage, injury, penalty, claim,
demand, action, suit or judgment, such Pledgor shall assume full responsibility for the defense
thereof. In addition, the Collateral Agent may retain its own counsel, whose fees and expenses
shall be paid jointly and severally by the Pledgors. Each Indemnitee agrees to use its
commercially reasonable efforts to promptly notify the Company of any such assertion of which such
Indemnitee has knowledge.

          (b) Without limiting the application of Section 8.1(a), each Pledgor agrees to pay, or
reimburse the Collateral Agent for any and all reasonable fees, costs and expenses of

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whatever kind
or nature incurred in connection with the creation, preservation or protection of the Collateral
Agent’s Liens on, and security interest in, the Collateral, including, without limitation, all fees
and taxes in connection with the recording or filing of instruments and documents in public
offices, payment or discharge of any taxes or Liens upon or in respect of the Collateral,
reasonable premiums for insurance with respect to the Collateral and all other reasonable fees,
costs and expenses in connection with protecting, maintaining or preserving the Collateral and the
Collateral Agent’s interest therein, whether through judicial proceedings or otherwise, or in
defending or prosecuting any actions, suits or proceedings arising out of or relating to the
Collateral as set forth herein and in the Indenture.

          (c) Without limiting the application of Section 8.1(a) or (b), each Pledgor agrees to pay,
indemnify and hold each Indemnitee harmless from and against any loss, costs, damages and expenses
which such Indemnitee may suffer, expend or incur in consequence of or growing out of any material
misrepresentation by such Pledgor in this Agreement or the Indenture, or in any writing
contemplated by or made or delivered pursuant to or in connection with this Agreement or the
Indenture as set forth herein and in the Indenture.

          (d) If and to the extent that the obligations of any Pledgor under this Section 8.1 are
unenforceable for any reason, such Pledgor hereby agrees to make the maximum contribution to the
payment and satisfaction of such obligations which is permissible under applicable law.

          SECTION 20.02. Indemnity Obligations Secured by Collateral; Survival. Any amounts
paid by any Indemnitee as to which such Indemnitee has the right to reimbursement shall constitute
Obligations secured by the Collateral. The indemnification obligations of each Pledgor contained
in this Article VIII shall continue in full force and effect notwithstanding the occurrence of the
Termination Date.

ARTICLE TWENTY-ONE

DEFINITIONS

          (a) The following terms which are capitalized herein shall have the meanings given to them in
the Uniform Commercial Code. Such definitions shall be equally applicable to the singular and
plural forms of the terms defined.

                              “Account”

                              “Chattel Paper”

                              “Commercial Tort Claim”

                              “Commodity Account”

                              “Commodity Intermediary”

H-26

 

                              “Deposit Account”

                              “Documents”

                              “Electronic Chattel Paper”

                              “Entitlement Holder”

                              “Entitlement Order”

                              “Equipment”

                              “Financial Asset”

                              “Fixtures”

                              “General Intangibles”

                              “Goods”

                              “Inventory”

                              “Investment Property”

                              “Letter-of-Credit Right”

                              “Letter of Credit”

                              “Payment Intangible”

                              “Securities Account”

                              “Securities Intermediary”

                              “Security”

                              “Security Entitlement”

                              “Supporting Obligations”

                              “Tangible Chattel Paper”

          (b) The following terms shall have the meanings herein specified. Such definitions shall be
equally applicable to the singular and plural forms of the terms defined.

          “Agreement” shall mean this Security Agreement as the same may be modified,
supplemented or amended from time to time in accordance with its terms.

H-27

 

          “Cash Collateral Account” shall mean a non-interest bearing cash collateral account
maintained with the Collateral Agent for the benefit of the Secured Creditors.

          “Coinmach Corp.” shall have the meaning provided in the fourth paragraph of the
Agreement.

          “Collateral” shall have the meaning provided in Section 1.1(a) of this Agreement.

          “Collateral Agent” shall have the meaning provided in the first paragraph of this
Agreement.

          “Company” shall have the meaning provided in the first paragraph of this Agreement.

          “Contract Rights” shall mean all rights of each Pledgor (including, without
limitation, all rights to payment) under each Contract.

          “Contracts” shall mean all contracts between each Pledgor and one or more additional
parties (including, without limitation, (i) each partnership agreement to which such Pledgor is a
party and (ii) any Interest Swap Obligations), but excluding (x) licenses to the extent that the
terms thereof prohibit the assignment of, or granting of a security interest in, such licenses and
(y) location contracts which have not, with the Collateral Agent’s approval, been assigned to the
Collateral Agent but, in each of the cases described in clauses (x) and (y) of this definition,
excluding the right to receive any payment (including, without limitation, Accounts, General
Intangibles and Payment Intangibles) or any other rights referred to in Sections 9-406(f), 9-407(a)
or 9-408(a) of the Uniform Commercial Code (or any successor provisions of any jurisdiction or any
other applicable law); provided, however, that at such time as such license is no
longer subject to such prohibition, such license shall (without any act or delivery by any Person)
constitute a Contract hereunder.

          “Control Agreement” shall mean an agreement in form and substance reasonably
acceptable to the Collateral Agent sufficient to establish “control” (as defined in Section 8-106
of the Uniform Commercial Code with respect to Securities Accounts, as defined in Section 9-104 of
the Uniform Commercial Code with respect to Deposit Accounts, and as defined in Section 9-106 of
the Uniform Commercial Code with respect to Commodity Accounts) over any applicable Investment
Property (including, without limitation, any Securities Account or Commodity Account) or Deposit
Account.

          “Copyrights” shall mean, collectively, with respect to each Pledgor, all copyrights
(whether statutory or common law and whether established or registered in the United States or any
other country) now owned or hereafter created or acquired by or assigned to such Pledgor, whether
published or unpublished, and all copyright registrations and applications made by such Pledgor
including, without limitation, the copyrights, registrations and applications listed in Schedule
14(b) to the Perfection Certificate, together with any and all (i) rights and privileges arising
under applicable law with respect to such Pledgor’s use of any copyrights, (ii) reissues, renewals,
continuations and extensions thereof, (iii) income, fees, royalties, damages, claims and

H-28

 

payments
now or hereafter due and/or payable with respect thereto, including, without limitation, damages
and payments for past, present or future infringements thereof, (iv) rights corresponding thereto
throughout the world and (v) rights to sue for past, present or future infringements thereof.

          “Credit Agreement Collateral Agent” shall have the meaning provided in the fourth
paragraph of this Agreement.

          “Depository Bank” shall have the meaning provided to the term “bank” in Article 9 of
the Uniform Commercial Code.

          “Existing Deposit Accounts” shall have the meaning provided in Section 3.7 of this
Agreement.

          “Goodwill” shall mean, collectively, with respect to each Pledgor, the goodwill
connected with such Pledgor’s business including, without limitation, (i) all goodwill connected
with the use of and symbolized by any of the Intellectual Property in which such Pledgor has any
interest and (ii) all know-how, trade secrets, customer and supplier lists, proprietary
information, inventions, methods, procedures, formulae, descriptions, compositions, technical data,
drawings, specifications, name plates, catalogs, confidential information and the right to limit
the use or disclosure thereof by any person or entity, pricing and cost information, business and
marketing plans and proposals, consulting agreements, engineering contracts and such other assets
which relate to such goodwill.

          “Holders” shall have the meaning provided in the first paragraph of this Agreement.

          “Indemnitee” shall have the meaning provided in Section 8.1(a) of this Agreement.

          “Indenture” shall have the meaning provided in the first paragraph of this Agreement.

          “Instrument” shall have the meaning provided to such term in Article 9 of the Uniform
Commercial Code as in effect on the date hereof in the State of New York but shall not include any
Location Leases.

          “Insurance Policies” shall mean, collectively, with respect to each Pledgor, all
insurance policies held by such Pledgor or naming such Pledgor as insured, additional insured or
loss payee, all such insurance policies entered into after the date hereof, other than insurance
policies (or certificates of insurance evidencing such insurance policies) relating to health and
welfare insurance and life insurance policies in which such Pledgor is not named as beneficiary
(i.e., insurance policies that are not “Key Man” insurance policies) and all rights, claims and
recoveries relating thereto (including, without limitation, all dividends, returned premiums and
other rights to receive money in respect of any of the foregoing).

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          “Intellectual Property” shall mean, collectively, the Patents, Trademarks, Copyrights,
Licenses and Goodwill.

          “Intercreditor Agreement” shall have the meaning provided in the sixth paragraph of
the Agreement.

          “Laundry Corp.” shall have the meaning provided in the first paragraph of this
Agreement.

          “Licenses” shall mean, collectively, with respect to each Pledgor, all license and
distribution agreements and covenants not to sue with any other party with respect to any Patent,
Trademark, or Copyright or any other patent, trademark or copyright, whether such Pledgor is a
licensor or licensee, distributor or distributee under any such license or distribution agreement,
including, without limitation, the license and distribution agreements listed in Schedules 14(a)
and 14(b) to the Perfection Certificate, together with any and all (i) renewals, extensions,
supplements and continuations thereof, (ii) income, fees, royalties, damages, claims and payments
now and hereafter due and/or payable thereunder and with respect thereto including, without
limitation, damages and payments for past, present or future infringements or violations thereof,
(iii) rights to sue for past, present and future infringements or violations thereof and (iv) any
other rights to use, exploit or practice any or all of the Patents, Trademarks or Copyrights or any
other patents, trademarks or copyrights.

          “Location Leases” shall mean leases, licenses or other agreements pursuant to which
any Pledgor leases, licenses or otherwise obtains the right to use any real property at which
Collateral constituting personal property is located.

          “Obligations” shall mean the collective reference to the unpaid principal of and
interest on the Senior Secured Notes and all other obligations and liabilities of any Pledgor
(including, without limitation, any increase in the aggregate principal amount of the Senior
Secured Notes, together with any interest accruing at the then applicable rate provided in the
Indenture or
the Senior Secured Notes after the maturity of the Notes and interest accruing at the then
applicable rate provided in the Indenture after the filing of any petition in bankruptcy, or the
commencement of any insolvency, reorganization or like proceeding, relating to the Company, whether
or not a claim for post-filing or post-petition interest is allowed in such proceeding) to the
Collateral Agent or any Secured Creditor, whether direct or indirect, absolute or contingent, due
or to become due, or now existing or hereafter incurred, which may arise under, out of, or in
connection with, the Indenture, the Senior Secured Notes, the Guarantees, this Agreement, or any
other document made, delivered or given in connection with any of the foregoing, in each case
whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs,
expenses or otherwise (including, without limitation, all fees and disbursements of counsel that
are required to be paid by such Pledgor pursuant to the terms of any of the foregoing agreements).

          “Patents” shall mean, collectively, with respect to each Pledgor, all patents issued
or assigned to and all patent applications and registrations made by such Pledgor (whether
established or registered or recorded in the United States or any other country), including,
without

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limitation, the patents, patent applications, registrations and recordings listed in
Schedule 14(a) to the Perfection Certificate, together with any and all (i) rights and privileges
arising under applicable law with respect to such Pledgor’s use of any patents, (ii) inventions and
improvements described and claimed therein, (iii) reissues, divisions, continuations, renewals,
extensions and continuations-in-part thereof, (iv) income, fees, royalties, damages, claims and
payments now or hereafter due and/or payable thereunder and with respect thereto including, without
limitation, damages and payments for past, present or future infringements thereof, (v) rights
corresponding thereto throughout the world, and (vi) rights to sue for past, present or future
infringements thereof.

          “Perfection Certificate” shall mean that certain Perfection Certificate dated the
Closing Date, delivered by the Company and Laundry Corp. in favor of the Collateral Agent (for the
benefit of the Secured Creditors).

          “Permitted Filings” shall have the meaning provided in Section 2.1 of this Agreement.

          “Pledgors” shall have the meaning provided in the first paragraph of this Agreement.

          “Proceeds” shall have the meaning provided to such term in the Uniform Commercial Code
as in effect in the State of New York on the date hereof or under other relevant law and, in any
event, shall include, but not be limited to, (i) any and all proceeds of any insurance, indemnity,
warranty or guaranty payable to the Collateral Agent or any Pledgor from time to time with respect
to any of the Collateral, (ii) any and all payments (in any form whatsoever) made or due and
payable to any Pledgor from time to time in connection with any requisition, confiscation,
condemnation, seizure or forfeiture of all or any part of the Collateral by any Governmental
Authority (or any person acting under color of Governmental Authority) (iii) instruments
representing obligations to pay amounts in respect of any Collateral, (iv) products of the
Collateral and (v) any and all other amounts from time to time paid or payable under or in
connection with any of the Collateral.

          “Secured Creditors” shall mean the Collateral Agent, the Trustee and the Holders.

          “Senior Secured Notes” shall have the meaning provided in the first paragraph of this
Agreement.

          “Significant Copyrights” shall mean those Copyrights which each Pledgor believes in
its reasonable judgment to be material to its business.

          “Significant Patents” shall mean those Patents which each Pledgor believes in its
reasonable judgment to be material to its business.

          “Significant Trademarks” shall mean those Trademarks which each Pledgor believes in
its reasonable judgment to be material to its business.

H-31

 

          “Specified Commercial Tort Claims” shall mean each Commercial Tort Claim with respect
to which the applicable Pledgor has complied with the provisions of Section 3.8(e).

          “Termination Date” means the earliest to occur of the date on which (a) all
Obligations have been paid in full in cash; (b) the Company exercises its legal defeasance option
or covenant defeasance option described in Section 8.01 of the Indenture; (c) the satisfaction and
discharge of the Indenture occurs in accordance with Section 8.02 thereof and (d) the Merger Event
occurs.

          “Trademarks” shall mean, collectively, with respect to each Pledgor, all trademarks
(including service marks), slogans, logos, designs, certification marks, trade dress, uniform
resource locations (URLs), domain names, corporate names and trade names, whether registered or
unregistered, owned by or assigned to such Pledgor and all registrations and applications for the
foregoing (whether statutory or common law and whether established or registered in the United
States or any other country) including, without limitation, the registrations and applications
listed in Schedule 14(a) to the Perfection Certificate, together with any and all (i) rights and
privileges arising under applicable law with respect to such Pledgor’s use of any trademarks, (ii)
reissues, continuations, extensions and renewals thereof, (iii) income, fees, royalties, damages
and payments now and hereafter due and/or payable thereunder and with respect thereto, including,
without limitation, damages, claims and payments for past, present or future infringements thereof,
(iv) rights corresponding thereto throughout the world and (v) rights to sue for past, present and
future infringements thereof.

          “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect on the
date hereof in the State of New York; provided, however, that if by reason of
mandatory provisions of law, the perfection or the effect of perfection or non-perfection of the
security interest in any item or portion of the Pledged Collateral is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than the State of New York, “Uniform
Commercial Code” shall also mean the Uniform Commercial Code as in effect in such other
jurisdiction for
purposes of the provisions hereof relating to such perfection or effect of perfection or
non-perfection.

ARTICLE TWENTY-TWO

MISCELLANEOUS

          SECTION 22.01. Notices. All such notices and communications hereunder shall be
telecopied or delivered by messenger or overnight courier service and all such notices and
communications shall, when mailed, telegraphed, telecopied, or cabled or sent by overnight courier,
be effective when delivered to the telegraph company, cable company or as overnight courier, as the
case may be, or sent by overnight, telecopier and when mailed shall be effective three Business
Days following deposit in the mail with proper postage, except that notices and communications to
the Collateral Agent shall not be effective until received by the Collateral Agent. All notices,
requests, demands or other communications shall be in writing and addressed as follows:

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	 	(a)  	if to any Pledgor, at:
	 
	 	   	Coinmach Service Corp.

303 Sunnyside Boulevard, Suite 70

Plainview, New York 11803

Attention: Robert M. Doyle
	 
	 	   	with a copy to:
	 
	 	   	Coinmach Corporation

521 East Morehead Street

Charlotte, North Carolina 28202

Attention: Stephen R. Kerrigan
	 
	 	   	with a copy to:
	 
	 	   	Mayer, Brown, Rowe & Maw LLP

1675 Broadway

New York, New York 10019

Attention: Ronald S. Brody, Esq.
	 
	 	(b)  	if to the Collateral Agent:
	 
	 	   	The Bank of New York

101 Barclay Street

Floor 8W

New York, New York 10286

Attention: Corporate Trust Administration

          SECTION 22.02. Waiver; Amendment. None of the terms and conditions of this Agreement
may be changed, waived, modified or varied any manner whatsoever except in accordance with Article
Nine of the Indenture.

          SECTION 22.03. Obligations Absolute. The obligations of each Pledgor hereunder shall
remain in full force and effect without regard to, and shall not be impaired by, (a) any
bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or the
like of such Pledgor; (b) any exercise or non-exercise, or any waiver of, any right, remedy, power
or privilege under or in respect of this Agreement or the Indenture except as specifically set
forth in a waiver granted pursuant to Section 10.2 hereof; or (c) any amendment to or modification
of the Senior Secured Notes or the Indenture or any security for any of the Obligations; whether or
not such Pledgor shall have notice or knowledge of any of the foregoing.

          SECTION 22.04. Successors and Assigns. This Agreement shall be binding upon the
parties hereto and their respective successors and assigns and shall inure to the benefit of the
Collateral Agent, each Secured Creditor and each Pledgor and their respective successors and
assigns, provided that no Pledgor may transfer or assign any or all of its rights or obligations

H-33

 

hereunder without the written consent of the Collateral Agent or otherwise in compliance with the
Indenture. All agreements, statements, representations and warranties made by each Pledgor herein
or in any certificate or other instrument delivered by such Pledgor or on its behalf under this
Agreement shall be considered to have been relied upon by the Secured Creditors and shall survive
the execution and delivery of this Agreement, the Senior Secured Notes and the Indenture regardless
of any investigation made by the Secured Creditors or on their behalf.

          SECTION 22.05. Headings Descriptive. The headings of the several sections of this
Agreement are inserted for convenience only and shall not in any way affect the meaning or
construction of any provision of this Agreement.

          SECTION 22.06. Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

          SECTION 22.07. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED
IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

          SECTION 22.08. Pledgor’s Duties. It is expressly agreed, anything herein contained to
the contrary notwithstanding, that each Pledgor shall remain liable to perform all of the
obligations, if any, assumed by it with respect to the Collateral and the Collateral Agent shall
not have any obligations or liabilities with respect to any Collateral by reason of or arising out
of this Agreement, nor shall the Collateral Agent be required or obligated in any manner to perform
or fulfill any of the obligations of such Pledgor under or with respect to any Collateral except to
the extent directly resulting from the Collateral Agent’s gross negligence or willful misconduct or
failure to act, in exercising its remedies hereunder, in a commercially reasonable manner.

          SECTION 22.09. Termination; Release. (a) On the Termination Date, this Agreement and
the security interest created hereby shall terminate, and the Collateral Agent shall, at the
request and expense of the Pledgors, promptly execute and deliver to the applicable Pledgor as
promptly thereafter as reasonably practicable a proper instrument or instruments (including Uniform
Commercial Code termination statements on form UCC-3) acknowledging the satisfaction and
termination of this Agreement, and will duly assign, transfer and deliver to the applicable Pledgor
(without recourse and without any representation or warranty) such of the Collateral of such
Pledgor as may be in the possession of the Collateral Agent or any of its sub-agents and has not
theretofore been sold or otherwise applied or released pursuant to this Agreement, together with
any proceeds of Collateral at the time held by the Collateral Agent or any of its sub-agents
hereunder.

          (b) In the event that any part of the Collateral is sold in connection with a sale not
prohibited by the Indenture or released in accordance with Article Eleven of the Indenture and the
proceeds of such sale or sales or from such release are applied in accordance with, and to

H-34

 

the
extent required by, the Indenture, to the extent required to be so applied, such Collateral will be
sold or released, free and clear of the Liens created by this Agreement and the Collateral Agent,
at the request and expense of the applicable Pledgor, will duly assign, transfer and deliver to
such Pledgor (without recourse and without any representation or warranty) such of the Collateral
as is then being (or has been) so sold or released and as may be in the possession of the
Collateral Agent and has not theretofore been released pursuant to this Agreement.

          (c) At any time that any Pledgor desires that the Collateral Agent take any action to
acknowledge or give effect to any release of Collateral pursuant to the foregoing Section 10.9(b),
it shall deliver to the Collateral Agent a certificate signed by its chief financial officer
stating that the release of the respective Collateral is permitted pursuant to Section 10.9(a) or
(b).

          (d) The Collateral Agent shall have no liability whatsoever to any Holder as a result of any
release of Collateral by it in accordance with this Section 10.9.

          SECTION 22.10. Counterparts. This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each of which when so
executed and delivered shall be an original, but all of which shall together constitute one and the
same instrument. A set of counterparts executed by all the parties hereto shall be lodged with the
Company and the Collateral Agent.

          SECTION 22.11. The Collateral Agent. (a) The Collateral Agent will hold in
accordance with this Agreement all items of the Collateral at any time received under this
Agreement. It is expressly understood and agreed by the parties hereto and each Secured Creditor,
by accepting the benefits of this Agreement acknowledges and agrees that the obligations of the
Collateral Agent as holder of the Collateral and interests therein and with respect to the
disposition thereof, and otherwise under this Agreement, are only those expressly set forth in this
Agreement. In connection with its appointment and acting hereunder, the Collateral Agent shall be
entitled to all rights, privileges, benefits, protections, immunities and indemnities provided to
it under the Indenture.

          (b) Beyond the exercise of reasonable care in the custody thereof, the Collateral Agent shall
have no duty as to any Collateral in its possession or control or in the possession or control of
any agent or bailee or any income thereon or as to preservation of rights against prior parties or
any other rights pertaining thereto and the Collateral Agent shall not be responsible for filing
any financing or continuation statements or recording any documents or instruments in any public
office at any time or times or otherwise perfecting or maintaining the perfection of any security
interest in the Collateral. The Collateral Agent shall be deemed to have exercised reasonable care
in the custody of the Collateral in its possession if the Collateral is accorded treatment
substantially equal to that which it accords its own property and shall not be liable or
responsible for any loss or diminution in the value of any of the Collateral, by reason of the act
or omission of any carrier, forwarding agency or other agent or bailee selected by the Collateral
Agent in good faith.

          (c) The Collateral Agent shall not be responsible for the existence, genuineness or value of
any of the Collateral or for the validity, perfection, priority or enforceability of

H-35

 

the Liens in
any of the Collateral, whether impaired by operation of law or by reason of any of any action or
omission to act on its part hereunder, except to the extent such action or omission constitutes
negligence, bad faith or wilful misconduct on the part of the Collateral Agent, for the validity or
sufficiency of the Collateral or any agreement or assignment contained therein, for the validity of
the title of the Pledgors to the Collateral, for insuring the Collateral or for the payment of
taxes, charges, assessments or Liens upon the Collateral or otherwise as to the maintenance of the
Collateral.

          (d) The Collateral Agent shall have no duty to act outside of the United States in respect of
any Collateral located in the jurisdiction other than the United States.

          SECTION 22.12. Intercreditor Agreement(a) . (a) The Liens granted hereunder in favor
of the Collateral Agent for the benefit of the Secured Creditors in respect of the Shared
Collateral and the exercise of any right or remedy related thereto hereunder shall be subject, in
each case, to the terms of the Intercreditor Agreement.

          (b) In the event of any conflict between the terms and provisions of this Agreement and of the
Intercreditor Agreement, the terms and provisions of the Intercreditor Agreement shall govern.

          (c) Notwithstanding anything to the contrary herein, any provision hereof that requires any
Pledgor to (i) deliver any Shared Collateral to the Collateral Agent or (ii) provide that the
Collateral Agent have control over such Shared Collateral may be satisfied by (A) the delivery of
such Shared Collateral by such Pledgor to the Credit Agreement Collateral Agent for the benefit of
the Lenders and the Collateral Agent for the benefit of the Secured Creditors pursuant to Section
5.4 of the Intercreditor Agreement and (B) providing that the Credit Agreement Collateral Agent be
provided with control with respect to such Shared Collateral of such Pledgor for the benefit of the
Lenders and the Collateral Agent for the benefit of Secured Creditors pursuant to Section 5.4 of
the Intercreditor Agreement.

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

	 	 	 	 	 
	 	 	COINMACH SERVICE CORP,
	 	 	as the Company and a Pledgor
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name.

	

	 	 	 	Title
	 
	 	 	 	 
	 	 	COINMACH LAUNDRY CORPORATION,
	 	 	as Guarantor and Pledgor
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name.

	

	 	 	 	Title
	 
	 	 	 	 
	 	 	THE BANK OF NEW YORK,
	 	 	as Collateral Agent
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name.
	

	 	 	 	Title

H-37

 

EXHIBIT I

FORM OF

PLEDGE AGREEMENT

          PLEDGE AGREEMENT (as amended, modified or supplemented from time to time, this
“Agreement”), dated as of ___, made by COINMACH SERVICE CORP. (the
“Company”), a Delaware corporation, and COINMACH LAUNDRY CORPORATION (“Laundry
Corp.” and, together with the Company, the “Pledgors”), a Delaware corporation, in
favor of THE BANK OF NEW YORK (“BNY”), a New York banking corporation, as Collateral Agent
(in such capacity and together with any successors in such capacity, the “Collateral
Agent”), for the benefit of the Secured Creditors (as defined below). Except as otherwise
defined herein, all capitalized terms used herein and defined in the security agreement, dated as
of the date hereof (as amended, modified or supplemented from time to time, the “Security
Agreement”), between the Pledgors and the Collateral Agent shall be used herein as so defined.

R E C I T A L S :

          1. The Company intends to issue on the date hereof $132,566,664.68 aggregate principal amount
of its 11% Senior Secured Notes due 2024 pursuant to the Indenture (as defined) (together with any
additional 11% Senior Secured Notes due 2024 issued from time to time in accordance with the
Indenture, the “Senior Secured Notes”). “Indenture” means the indenture, dated as
of the date hereof, as amended, modified or supplemented from time to time, between the Company,
the subsidiary guarantors party thereto from time to time and BNY as trustee (the
“Trustee”) and as Collateral Agent.

          2. The obligations of the Company under the Indenture and the Senior Secured Notes will be
guaranteed by Laundry Corp. in accordance with the Indenture.

          3. Laundry Corp. will receive substantial benefits from the proceeds of the Senior Secured
Notes and has agreed to grant to the Collateral Agent Liens on and security interests in the
Collateral owned by it to secure its Obligations (as defined below).

          4. Laundry Corp. has previously granted a Lien and pledged all of its right, title and
interest in and relating to the Capital Stock of Coinmach Corporation (“Coinmach Corp.”), a
Delaware corporation, and Proceeds thereof (collectively, the “Shared Collateral”) in favor
of Deutsche Bank Trust Company Americas (“DB Trust”), as collateral agent (the “Credit
Agreement Collateral Agent”) under the Credit Agreement (as amended, modified or supplemented
from time to time, the “Credit Agreement”) dated as of January 25, 2002, among Laundry
Corp., Coinmach Corp., the lenders party thereto from time to time in their capacities as lenders
thereunder, DB Trust, as administrative agent and the Credit Agreement Collateral Agent.

          5. It is a condition precedent to the purchase of the Senior Secured Notes that the Pledgors
shall have executed and delivered this Agreement to the Collateral Agent for the

I-1

 

benefit of the Collateral Agent, the Trustee and the Holders from time to time of the Senior
Secured Notes (collectively, the “Secured Creditors”).

          6. It is a condition precedent to the effectiveness of certain amendments to the Credit
Agreement and to the Holdings Pledge Agreement (as defined therein) necessary to permit the grant
by Laundry Corp. hereunder of the Liens in favor of the Collateral Agent on the Shared Collateral
that Laundry Corp. shall have executed and delivered a certain intercreditor agreement (the
“Intercreditor Agreement”) dated as of the date hereof (as the same may be amended,
supplemented or otherwise modified from time to time) among Laundry Corp., the Collateral Agent and
the Credit Agreement Collateral Agent.

          7. The Pledgors desire to enter into this Agreement in order to satisfy the condition
described in the preceding paragraph and to secure the payment and performance of all the
Obligations.

A G R E E M E N T :

          NOW, THEREFORE, in consideration of the above-described extensions of credit to be made to the
Pledgors and other benefits accruing to the Pledgors, the receipt and sufficiency of which are
hereby acknowledged, each Pledgor hereby makes the following representations and warranties to the
Collateral Agent for the benefit of the Secured Creditors and hereby covenants and agrees with the
Collateral Agent for the benefit of the Secured Creditors as follows:

          THREE-ARTICLE TWENTY SECURITY FOR OBLIGATIONS. THIS AGREEMENT IS MADE BY EACH PLEDGOR FOR THE
BENEFIT OF THE SECURED CREDITORS TO SECURE THE FULL AND PROMPT PAYMENT AND PERFORMANCE WHEN DUE
(WHETHER AT THE STATED MATURITY, BY ACCELERATION OR OTHERWISE IN ACCORDANCE WITH THE TERMS OF THE
INDENTURE) OF THE OBLIGATIONS, WHETHER OUTSTANDING ON THE DATE OF THIS AGREEMENT OR EXTENDED FROM
TIME TO TIME AFTER THE DATE OF THIS AGREEMENT.

          FOUR-ARTICLE TWENTY DEFINITION OF STOCK, INTERESTS, NOTES, SECURITIES, ETC.; REPRESENTATIONS
AND WARRANTIES. AS USED HEREIN,

     (1) the term “Stock” shall mean (x) with respect to corporations incorporated
under the laws of the United States or any State or territory thereof (each, a “Domestic
Corporation”), all of the issued and outstanding shares of capital stock of whatever
class at any time owned by each Pledgor of each Domestic Corporation and (y) with respect to
corporations that do not constitute Domestic Corporations (each, a “Foreign
Corporation”), all of the issued and outstanding shares of capital stock of whatever
class at any time owned by each Pledgor of each Foreign Corporation, in each case described
in clauses (i)(x) and (i)(y) of this sentence, together with the certificates representing
such shares and any interest of such Pledgor in the entries on the books of any financial
intermediary pertaining to such shares; provided that, except as provided in the
last sentence of this Section 2, such Pledgor shall not be required to pledge hereunder more
than 65%

I-2

 

     of the total combined voting power of all classes of capital stock of any Foreign
Corporation entitled to vote,

     (2) the term “Interests” shall mean (x) with respect to limited liability
companies, partnerships or other entities (other than corporations) organized under the laws
of the United States or any State or territory thereof (each, a “Domestic Non-Corporate
Entity”), all of the issued and outstanding membership interests, partnership interests
or other interests of whatever class at any time owned by each Pledgor of each Domestic
Non-Corporate Entity and (y) with respect to limited liability companies, partnerships or
other entities (other than corporations) that do not constitute Domestic Non-Corporate
Entities (each, a “Foreign Non-Corporate Entity”), all of the issued and outstanding
membership interests, partnership interests or other interests of whatever class at any time
owned by each Pledgor of each Foreign Non-Corporate Entity, in each case described in
clauses (ii)(x) and (ii)(y) of this sentence, together with all rights, privileges,
authority and powers of such Pledgor in and to each such Domestic Non-Corporate Entity or
Foreign Non-Corporate Entity or under the membership, partnership or other operative
agreement of each such entity, and the certificates, instruments and agreements, if any,
representing such membership, partnership or other equity interests; provided that,
except as provided in the last sentence of this Section 2, such Pledgor shall not be
required to pledge hereunder more than 65% of the total combined voting power of all classes
of interests of any Foreign Non-Corporate Entity entitled to vote, and

     (3) the term “Notes” shall mean (x) all promissory notes at any time issued to
each Pledgor by any of its Subsidiaries (including the Intercompany Note), together with all
certificates or instruments evidencing such promissory notes and all proceeds thereof, and
all accessions thereto and substitutions therefor and (y) except as provided in the last
sentence of this Section 2, such Pledgor shall not be required to pledge hereunder any
promissory notes issued to such Pledgor by any Subsidiary of such Pledgor which is a Foreign
Corporation or Foreign Non-Corporate Entity.

          If and to the extent that the Collateral Agent receives or holds stock certificates
representing more than 65% of the total combined voting power of all classes of capital stock or
other interests of any Foreign Corporation or Foreign Non-Corporate Entity entitled to vote, the
Collateral Agent agrees to act as bailee and custodian for the benefit of the applicable Pledgor
with respect to any portion of such capital stock or other interest representing more than 65% of
the total combined voting power of all classes of capital stock or other interest of any Foreign
Corporation or Foreign Non-Corporate Entity entitled to vote except as otherwise provided in the
last sentence of this Section 2. As used herein, the term “Securities” shall mean all of
the Stock, Interests and Notes.

          Each Pledgor represents and warrants, as to the stock of corporations, interests in
non-corporate entities and promissory notes owned by such Pledgor, that on the date hereof (a) the
Stock consists of the number and type of shares of the stock of the corporations as described in
Part I of Schedule A hereto; (b) such Stock constitutes that percentage of the applicable class of
stock issued and outstanding capital stock of the issuing corporation as is set forth in Part I of
Schedule A hereto; (c) the Notes consist of the promissory notes described in Part II of Schedule A
hereto; (d) the Interests consist of the type of interests of the non-corporate entities

I-3

 

as described in Part III of Schedule A hereto; (e) such Interests constitute that percentage
of the issues interests of the issuing non-corporate entities as described in Part III of Schedule
A hereto; and (f) such Pledgor is the holder of record and sole beneficial owner of the Stock, the
Interest and the Notes and there exist no options or preemptive rights in respect of any of the
Securities. If following a change in the relevant sections of the Code or the regulations, rules,
rulings, notices or other official pronouncements issued or promulgated thereunder which would
permit a pledge (x) of 66-2/3% or more (or would be adjusted to permit a pledge of less than
66-2/3%) of the total combined voting power of all classes of capital stock of any Foreign
Corporation or Foreign Non-Corporate Entity entitled to vote and (y) of any promissory note issued
by any Subsidiary of each Pledgor which is a Foreign Corporation or Foreign Non-Corporate Entity
without causing the undistributed earnings of such Foreign Corporation or Foreign Non-Corporate
Entity as determined for Federal income taxes to be treated as a deemed dividend to such Pledgor
for Federal income tax purposes and without causing any other material adverse tax consequences to
the applicable Pledgor or any of its Subsidiaries or Affiliates, then the 65% limitation set forth
in the provisions to clauses (i) and (ii) and the limitation set forth in clause (iii)(y) of this
Section 2 shall no longer be applicable (or shall be adjusted as appropriate) and such Pledgor
shall duly pledge and deliver to the Collateral Agent such of the Securities not theretofore
required to be pledged hereunder or the Collateral Agent shall return such Securities, as
applicable.

          FIVE-ARTICLE TWENTY PLEDGE OF SECURITIES, ETC.

          SECTION 25.01. Pledge. To secure the payment and performance when due of all of the
Obligations and for the purposes set forth in Section 1, each Pledgor (i) hereby grants to the
Collateral Agent for the benefit of the Secured Creditors a continuing security interest in and to
all of the right, title and interests of such Pledgor in, to and under the Collateral (as
hereinafter defined), (ii) hereby pledges and deposits with the Collateral Agent the Securities
owned by such Pledgor on the date hereof, and, subject to Section 24, delivers to the Collateral
Agent certificates therefor, duly endorsed in blank in the case of promissory notes and accompanied
by undated stock powers duly executed in blank by such Pledgor (and accompanied by any transfer tax
stamps required in connection with the pledge of such Securities) in the case of capital stock, or
such other instruments of transfer as are reasonably acceptable to the Collateral Agent and (iii)
hereby collaterally assigns, transfers, hypothecates and sets over to the Collateral Agent all of
such Pledgor’s right, title and interest in and to such Securities (and in and to the certificates
or instruments evidencing such Securities and the other Collateral), to be held by the Collateral
Agent as collateral security for the Obligations, upon the terms and conditions set forth in this
Agreement.

          SECTION 25.02. Subsequently Acquired Securities. If any Pledgor shall acquire (by
purchase, stock dividend or otherwise) any additional Securities at any time or from time to time
after the date hereof, such Pledgor will promptly thereafter (and in any event within five Business
Days) pledge and deposit such Securities (or certificates or instruments representing Securities)
as security with the Collateral Agent and deliver to the Collateral Agent certificates or
instruments therefor, duly endorsed in blank in the case of promissory notes, and accompanied by
undated stock powers duly executed in blank by such Pledgor (and accompanied by any transfer tax
stamps required in connection with the pledge of such Securities) in the case of capital stock, or
such other instruments of transfer as are reasonably acceptable to the Collateral Agent, and will
promptly thereafter (and in any event within five Business Days) deliver to

I-4

 

the Collateral Agent a pledge amendment duly executed by a principal executive officer of such
Pledgor in substantially the form of Exhibit 1 hereto (each, a “Pledge Amendment”)
describing such Securities and certifying that the same have been duly pledged with the Collateral
Agent hereunder. Subject to the last sentence of Section 2, no Pledgor shall be required at any
time to pledge hereunder any promissory notes issued to such Pledgor by a Subsidiary which is a
Foreign Corporation or Foreign Non-Corporate Entity or more than 65% of the total combined voting
power of all classes of capital stock or other interests of any Foreign Corporation or Foreign
Non-Corporate Entity entitled to vote.

          SECTION 25.03. Uncertificated Securities. Notwithstanding anything to the contrary
contained in Sections 3.1 and 3.2, if any Securities (whether now owned or hereafter acquired) are
uncertificated securities, each Pledgor shall promptly (and in any event within ten Business Days)
notify the Collateral Agent thereof, and shall promptly (and in any event within ten Business Days)
take all actions reasonably required to perfect the security interest of the Collateral Agent under
applicable law. Each Pledgor further agrees to take such actions as are necessary or that the
Collateral Agent deems reasonably necessary or desirable to effect the foregoing (including,
without limitation, causing the issuer of such uncertificated Securities to execute and deliver to
the Collateral Agent an acknowledgment of the pledge of such Securities hereunder substantially in
the form of Exhibit 2 hereto) and to permit the Collateral Agent to exercise any of its
rights and remedies hereunder, and agrees to provide an opinion of counsel to the Collateral Agent
with respect to any such pledge of uncertificated Securities promptly upon the reasonable request
of the Collateral Agent.

          SECTION 25.04. Definitions of Pledged Stock; Pledged Notes; Pledged Securities and
Collateral. As used herein, “Collateral” shall mean all of the following property of
each Pledgor, whether now existing or owned or hereafter arising or acquired:

     (1) all Stock at any time pledged or required to be pledged hereunder (hereinafter
called the “Pledged Stock”);

     (2) all Interests at any time pledged or required to be pledged hereunder (hereinafter
called the “Pledged Interests”);

     (3) all Notes at any time pledged or required to be pledged hereunder (hereinafter
called the “Pledged Notes”; together with all Pledged Stock and Pledged Interests
are hereinafter called the “Pledged Securities”);

     (4) all dividends, cash, options, warrants, rights, instruments, distributions, returns
of capital or principal, income, interest, profits and other property, interests (debt or
equity) or proceeds, including as a result of a split, revision, reclassification or other
like change of the Pledged Securities, from time to time received, receivable or otherwise
distributed to such Pledgor in respect of or in exchange for any or all of the Pledged
Securities (collectively, “Distributions”);

     (5) without affecting the obligations of such Pledgor under any provision prohibiting
such action hereunder or under the Indenture, in the event of any consolidation or merger in
which any Person listed in Schedule A hereto is not the surviving entity, all

I-5

 

shares of each class of the capital stock of the successor corporation or interests or
certificates of the successor limited liability company or partnership or other entity owned
by such Pledgor (unless such successor is such Pledgor itself) formed by or resulting from
such consolidation or merger; and

     (6) all Proceeds (as defined under the Uniform Commercial Code as in effect in any
relevant jurisdiction (the “UCC”) or under other relevant law) of any of the
foregoing, and in any event, including, without limitation, any and all (a) proceeds of any
insurance, indemnity, warranty or guarantee payable to the Collateral Agent or to any
Pledgor from time to time with respect to any of the Collateral, (b) payments (in any form
whatsoever) made or due and payable to any Pledgor from time to time in connection with any
requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the
Collateral by any Governmental Authority (or any person acting under color of a Governmental
Authority), (c) instruments representing obligations to pay amounts in respect of any
Collateral, (d) products of the Collateral and (e) any and all other amounts from time to
time paid or payable under or in connection with any of the Collateral, including any
securities and moneys received and at any time held by the Collateral Agent hereunder.

          SIX-ARTICLE TWENTY APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC. THE COLLATERAL AGENT SHALL
HAVE THE RIGHT TO APPOINT ONE OR MORE SUB-AGENTS, AT THE COST AND EXPENSE OF THE PLEDGORS, FOR THE
PURPOSE OF RETAINING PHYSICAL POSSESSION OF THE PLEDGED SECURITIES, WHICH MAY BE HELD (IN THE
REASONABLE DISCRETION OF THE COLLATERAL AGENT) IN THE NAME OF THE APPLICABLE PLEDGOR, ENDORSED OR
ASSIGNED IN BLANK OR IN FAVOR OF THE COLLATERAL AGENT OR ANY NOMINEE OR NOMINEES OF THE COLLATERAL
AGENT OR A SUB-AGENT APPOINTED BY THE COLLATERAL AGENT.

          SEVEN-ARTICLE TWENTY VOTING, ETC., WHILE NO EVENT OF DEFAULT. UNLESS AND UNTIL THERE SHALL
HAVE OCCURRED AND BE CONTINUING AN EVENT OF DEFAULT AND THE COLLATERAL AGENT HAS GIVEN WRITTEN
NOTICE TO THE COMPANY, EACH PLEDGOR SHALL, TO THE EXTENT NOT PROHIBITED IN SUCH NOTICE, BE ENTITLED
TO VOTE ANY AND ALL PLEDGED SECURITIES OWNED BY IT, AND TO GIVE CONSENTS, WAIVERS OR RATIFICATIONS
IN RESPECT THEREOF, PROVIDED THAT NO VOTE SHALL BE CAST OR ANY CONSENT, WAIVER OR
RATIFICATION GIVEN OR ANY ACTION TAKEN WHICH WOULD VIOLATE OR RESULT IN BREACH OF ANY COVENANT
CONTAINED IN THIS AGREEMENT OR THE INDENTURE OR WHICH IS NOT PERMITTED UNDER THIS AGREEMENT OR THE
INDENTURE AND COULD REASONABLY BE EXPECTED TO HAVE THE EFFECT OF MATERIALLY IMPAIRING THE VALUE OF
THE COLLATERAL OR ANY MATERIAL PART THEREOF OR THE POSITION OR INTERESTS OF THE COLLATERAL AGENT OR
ANY SECURED CREDITOR. ALL SUCH RIGHTS OF EACH PLEDGOR TO VOTE AND TO GIVE CONSENTS, WAIVERS AND
RATIFICATIONS SHALL CEASE IN CASE AN EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING AND THE
COLLATERAL AGENT HAS GIVEN WRITTEN NOTICE TO THE

I-6

 

COMPANY PROHIBITING THE EXERCISE BY ANY PLEDGOR OF ANY SUCH RIGHT, AND SECTION 7 HEREOF SHALL
BECOME APPLICABLE.

          EIGHT-ARTICLE TWENTY DIVIDENDS AND OTHER DISTRIBUTIONS. UNLESS AND UNTIL THERE SHALL HAVE
OCCURRED AND BE CONTINUING AN EVENT OF DEFAULT AND THE COLLATERAL AGENT HAS GIVEN WRITTEN NOTICE TO
THE COMPANY PROHIBITING SUCH PAYMENT, ALL CASH DIVIDENDS AND DISTRIBUTIONS PAYABLE IN RESPECT OF
THE PLEDGED STOCK AND PLEDGES INTERESTS AND ALL PAYMENTS IN RESPECT OF THE PLEDGED NOTES SHALL BE
PAID TO THE APPLICABLE PLEDGOR. IF THERE SHALL HAVE OCCURRED AND BE CONTINUING AN EVENT OF
DEFAULT, THE COLLATERAL AGENT SHALL BE PROVIDED WITH DIRECTLY, AND TO RETAIN AS PART OF THE
COLLATERAL:

     (a) all other or additional stock or securities or other interests (other than cash)
paid or distributed by way of dividend or otherwise, as the case may be, in respect of the
Pledged Securities;

     (b) all other or additional stock or other securities or other interests paid (other
than cash) or distributed in respect of the Pledged Securities by way of stock split,
spin-off, split-up, reclassification, combination of shares or similar rearrangement; and

     (c) all other or additional stock or other securities or other interests or property
(excluding cash) which may be paid in respect of the Collateral by reason of any
consolidation, merger, exchange of stock, conveyance of assets, liquidation or similar
corporate reorganization.

Nothing contained in this Section 6 shall limit or restrict in any way the Collateral Agent’s right
to receive proceeds of the Collateral in any form in accordance with Section 3 of this Agreement.
All dividends, distributions or other payments which are received by each Pledgor contrary to the
provisions of this Section 6 and Section 7 shall be received in trust for the benefit of the
Collateral Agent, shall be segregated from other property or funds of such Pledgor and shall be
forthwith paid or delivered over to the Collateral Agent as Collateral in the same form as so
received (with any necessary endorsement).

          NINE-ARTICLE TWENTY REMEDIES IN CASE OF EVENTS OF DEFAULT. IF THERE SHALL HAVE OCCURRED AND
BE CONTINUING AN EVENT OF DEFAULT AND THE COLLATERAL AGENT HAS GIVEN WRITTEN NOTICE TO THE COMPANY
OF ITS INTENT TO EXERCISE ALL OR ANY OF ITS RIGHTS UNDER THIS SECTION 7, THEN AND IN EVERY SUCH
CASE, THE COLLATERAL AGENT SHALL BE ENTITLED TO EXERCISE ALL OF THE RIGHTS, POWERS AND REMEDIES
(WHETHER VESTED IN IT BY THIS AGREEMENT, THE SENIOR SECURED NOTES OR THE INDENTURE, OR BY LAW) FOR
THE PROTECTION AND ENFORCEMENT OF ITS RIGHTS IN RESPECT OF THE COLLATERAL, AND THE COLLATERAL AGENT
SHALL BE ENTITLED TO EXERCISE ALL THE RIGHTS AND REMEDIES OF A SECURED PARTY UNDER THE UCC AND ALSO
SHALL BE ENTITLED, WITHOUT LIMITATION, TO EXERCISE THE FOLLOWING RIGHTS, WHICH THE COLLATERAL AGENT
AGREES TO EXERCISE IN A COMMERCIALLY REASONABLE MANNER:

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     (a) to receive all amounts payable in respect of the Collateral otherwise payable under
Section 6 to the Pledgors;

     (b) to transfer all or any part of the Collateral into the Collateral Agent’s name or
the name of its nominee or nominees;

     (c) to accelerate any Pledged Note which may be accelerated in accordance with its
terms, and take any other lawful action to collect upon any Pledged Note at such times and
under the conditions set forth therein;

     (d) to vote all or any part of the Pledged Stock and/or Pledged Interests (whether or
not transferred into the name of the Collateral Agent) and give all consents, waivers and
ratifications in respect of the Collateral and otherwise act with respect thereto in a
commercially reasonable manner as though it were the outright owner thereof (each Pledgor
hereby irrevocably constituting and appointing the Collateral Agent the proxy and
attorney-in-fact of such Pledgor, with full power of substitution to do so upon the
occurrence and during the continuance of an Event of Default provided the Collateral Agent
has delivered written notice to the Company of its intent to exercise all or any of its
rights under this clause (d))

     (e) to sell, assign and deliver, or grant options to purchase, all or any part of the
Collateral, or any interest therein, at any public or private sale, without demand of
performance, advertisement or notice of intention to sell or of the time or place of sale or
adjournment thereof or to redeem or otherwise (all of which are hereby waived by each
Pledgor), for cash, on credit or for other property, for immediate or future delivery
without any assumption of credit risk, and for such price or prices and on such terms as the
Collateral Agent may determine in a commercially reasonable manner, provided that at
least 10 days’ written notice of the time and place of any such sale shall be given to the
applicable Pledgor. The Collateral Agent shall not be obligated to make any such sale of
Collateral regardless of whether any such notice of sale has theretofore been given. Each
Pledgor hereby waives and releases to the fullest extent permitted by law any right or
equity of redemption with respect to the Collateral, whether before or after sale hereunder,
other than such Pledgor’s right to receive any excess proceeds or Collateral remaining after
the occurrence of the Termination Date. At any such sale, unless prohibited by applicable
law, the Collateral Agent on behalf of the Secured Creditors may bid for and purchase all or
any part of the Collateral so sold free from any such right or equity of redemption.
Neither the Collateral Agent nor any Secured Creditor shall be liable for failure to collect
(except in such cases where the Collateral Agent bids for and purchases all or part of the
Collateral) or realize upon any or all of the Collateral or for any delay in so doing nor
shall any of them be under any obligation to take any action whatsoever with regard thereto.

          ARTICLE THIRTY REMEDIES, ETC., CUMULATIVE. EACH AND EVERY RIGHT, POWER AND REMEDY OF THE
COLLATERAL AGENT PROVIDED FOR IN THIS AGREEMENT, THE SENIOR SECURED NOTES OR THE INDENTURE NOW OR
HEREAFTER EXISTING AT LAW OR IN EQUITY OR BY STATUTE, SHALL BE CUMULATIVE AND CONCURRENT AND SHALL
BE IN ADDITION TO EVERY OTHER SUCH

I-8

 

RIGHT, POWER OR REMEDY. THE EXERCISE OR BEGINNING OF THE EXERCISE BY THE COLLATERAL AGENT OR
ANY SECURED CREDITOR OF ANY ONE OR MORE OF THE RIGHTS, POWERS OR REMEDIES PROVIDED FOR IN THIS
AGREEMENT, THE SENIOR SECURED NOTES OR THE INDENTURE OR NOW OR HEREAFTER EXISTING AT LAW OR IN
EQUITY OR BY STATUTE SHALL NOT PRECLUDE THE SIMULTANEOUS OR LATER EXERCISE BY THE COLLATERAL AGENT
OR ANY SECURED CREDITOR OF ALL SUCH OTHER RIGHTS, POWERS OR REMEDIES, AND NO FAILURE OR DELAY ON
THE PART OF THE COLLATERAL AGENT OR ANY SECURED CREDITOR TO EXERCISE ANY SUCH RIGHT, POWER OR
REMEDY SHALL OPERATE AS A WAIVER THEREOF EXCEPT AS REQUIRED BY APPLICABLE LAW. UNLESS OTHERWISE
REQUIRED BY THE INDENTURE, NO NOTICE TO OR DEMAND ON ANY PLEDGOR IN ANY CASE SHALL ENTITLE IT TO
ANY OTHER OR FURTHER NOTICE OR DEMAND IN SIMILAR OR OTHER CIRCUMSTANCES OR CONSTITUTE A WAIVER OF
ANY OF THE RIGHTS OF THE COLLATERAL AGENT OR ANY SECURED CREDITOR TO ANY OTHER OR FURTHER ACTION IN
ANY CIRCUMSTANCES WITHOUT NOTICE OR DEMAND.

          ARTICLE THIRTY-ONE APPLICATION OF PROCEEDS. ALL MONEYS COLLECTED BY THE COLLATERAL AGENT UPON
ANY SALE OR OTHER DISPOSITION OF THE COLLATERAL, TOGETHER WITH ALL OTHER MONEYS RECEIVED BY THE
COLLATERAL AGENT HEREUNDER, SHALL BE APPLIED TO THE PAYMENT OF THE OBLIGATIONS IN THE MANNER SET
FORTH IN SECTION 7.4 OF THE SECURITY AGREEMENT.

          ARTICLE THIRTY-TWO PURCHASERS OF COLLATERAL. UPON ANY SALE OF THE COLLATERAL BY THE
COLLATERAL AGENT HEREUNDER (WHETHER BY VIRTUE OF THE POWER OF SALE HEREIN GRANTED, PURSUANT TO
JUDICIAL PROCESS OR OTHERWISE), THE RECEIPT OF THE COLLATERAL AGENT OR THE OFFICER MAKING THE SALE
SHALL BE A SUFFICIENT DISCHARGE TO THE PURCHASER OR PURCHASERS OF THE COLLATERAL SO SOLD, AND SUCH
PURCHASER OR PURCHASERS SHALL NOT BE OBLIGATED TO SEE TO THE APPLICATION OF ANY PART OF THE
PURCHASE MONEY PAID OVER TO THE COLLATERAL AGENT OR SUCH OFFICER OR BE ANSWERABLE IN ANY WAY FOR
THE MISAPPLICATION OR NONAPPLICATION THEREOF.

          ARTICLE THIRTY-THREE INDEMNITY. EACH PLEDGOR AGREES TO INDEMNIFY AND HOLD HARMLESS THE
COLLATERAL AGENT AND EACH SECURED CREDITOR AND THEIR RESPECTIVE SUCCESSORS, ASSIGNS, EMPLOYEES,
AGENTS AND SERVANTS (EACH, AN “INDEMNITEE”; COLLECTIVELY, THE “INDEMNITEES”) FROM
AND AGAINST ANY AND ALL CLAIMS, DEMANDS, LOSSES, JUDGMENTS AND LIABILITIES (INCLUDING LIABILITIES
FOR PENALTIES) OF WHATSOEVER KIND OR NATURE, AND TO REIMBURSE EACH INDEMNITEE FOR ALL COSTS AND
EXPENSES, INCLUDING REASONABLE ATTORNEYS’ FEES, GROWING OUT OF OR RESULTING FROM THIS AGREEMENT OR
THE EXERCISE BY ANY INDEMNITEE OF ANY RIGHT OR REMEDY GRANTED TO IT HEREUNDER OR UNDER THE
INDENTURE (BUT EXCLUDING ANY CLAIMS, DEMANDS, LOSSES, JUDGMENTS AND LIABILITIES OR EXPENSES TO THE
EXTENT FINALLY JUDICIALLY

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DETERMINED TO HAVE BEEN INCURRED BY REASON OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH
INDEMNITEE). IF AND TO THE EXTENT THAT THE OBLIGATIONS OF ANY PLEDGOR UNDER THIS SECTION 11 ARE
UNENFORCEABLE FOR ANY REASON, SUCH PLEDGOR HEREBY AGREES TO MAKE THE MAXIMUM CONTRIBUTION TO THE
PAYMENT AND SATISFACTION OF SUCH OBLIGATIONS THAT IS PERMISSIBLE UNDER APPLICABLE LAW.

          ARTICLE THIRTY-FOUR FURTHER ASSURANCES; POWER-OF-ATTORNEY. 2. EACH PLEDGOR AGREES THAT IT
WILL JOIN WITH THE COLLATERAL AGENT IN EXECUTING AND, AT ITS OWN EXPENSE, FILE AND REFILE UNDER THE
UCC OR OTHER APPLICABLE LAW SUCH FINANCING STATEMENTS, CONTINUATION STATEMENTS AND OTHER DOCUMENTS
IN SUCH OFFICES AS ARE NECESSARY OR AS THE COLLATERAL AGENT MAY DEEM REASONABLY NECESSARY AND
WHEREVER REQUIRED BY LAW IN ORDER TO PERFECT AND PRESERVE THE COLLATERAL AGENT’S SECURITY INTEREST
IN THE COLLATERAL AND HEREBY AUTHORIZES THE COLLATERAL AGENT TO FILE FINANCING STATEMENTS AND
AMENDMENTS THERETO RELATIVE TO ALL OR ANY PART OF THE COLLATERAL WITHOUT THE SIGNATURE OF SUCH
PLEDGOR, AND AGREES TO DO SUCH FURTHER ACTS AND THINGS AND TO EXECUTE AND DELIVER TO THE COLLATERAL
AGENT SUCH ADDITIONAL CONVEYANCES, ASSIGNMENTS, AGREEMENTS AND INSTRUMENTS AS ARE NECESSARY OR AS
THE COLLATERAL AGENT MAY REASONABLY REQUIRE OR DEEM NECESSARY TO CARRY INTO EFFECT THE PURPOSES OF
THIS AGREEMENT OR TO FURTHER ASSURE AND CONFIRM UNTO THE COLLATERAL AGENT ITS RIGHTS, POWERS AND
REMEDIES HEREUNDER.

          1. Each Pledgor hereby appoints the Collateral Agent such Pledgor’s attorney-in-fact, with
full authority in the place and stead of such Pledgor and in the name of such Pledgor or otherwise,
from time to time after the occurrence and during the continuance of an Event of Default and
provided that the Collateral Agent shall have delivered notice to the Company of its intent to
exercise all or any of its rights under this clause (b), to take any action and to execute any
instrument necessary or which the Collateral Agent may reasonably deem necessary or advisable to
accomplish the purposes of this Agreement.

          FIVE-ARTICLE THIRTY THE PLEDGEE AS AGENT. THE COLLATERAL AGENT WILL HOLD IN ACCORDANCE WITH
THIS AGREEMENT ALL ITEMS OF THE COLLATERAL AT ANY TIME RECEIVED UNDER THIS AGREEMENT. IT IS
EXPRESSLY UNDERSTOOD AND AGREED BY THE PARTIES HERETO AND EACH SECURED CREDITOR, BY ACCEPTING THE
BENEFITS OF THIS AGREEMENT, EACH SUCH PERSON ACKNOWLEDGES AND AGREES THAT THE OBLIGATIONS OF THE
COLLATERAL AGENT AS HOLDER OF THE COLLATERAL AND INTERESTS THEREIN AND WITH RESPECT TO THE
DISPOSITION THEREOF, AND OTHERWISE UNDER THIS AGREEMENT, ARE ONLY THOSE EXPRESSLY SET FORTH IN THIS
AGREEMENT. THE COLLATERAL AGENT SHALL ACT HEREUNDER ON THE TERMS AND CONDITIONS SET FORTH HEREIN
AND IN ARTICLE SEVEN OF THE INDENTURE.

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          SIX-ARTICLE THIRTY TRANSFER BY THE PLEDGOR. NO PLEDGOR WILL SELL OR OTHERWISE DISPOSE OF,
GRANT ANY OPTION WITH RESPECT TO, OR MORTGAGE, PLEDGE OR OTHERWISE ENCUMBER ANY OF THE COLLATERAL
OR ANY INTEREST THEREIN (EXCEPT AS MAY BE PERMITTED IN ACCORDANCE WITH THE TERMS OF THE INDENTURE).

          SEVEN-ARTICLE THIRTY REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGOR. 3. EACH
PLEDGOR REPRESENTS AND WARRANTS THAT AS OF THE DATE HEREOF (I) IT IS, OR AT THE TIME WHEN PLEDGED
HEREUNDER WILL BE, THE LEGAL, RECORD AND BENEFICIAL OWNER OF, AND HAS (OR WILL HAVE) GOOD TITLE TO,
ALL COLLATERAL PLEDGED BY IT HEREUNDER, SUBJECT TO NO LIEN (EXCEPT THE LIEN CREATED BY THIS
AGREEMENT AND EXCEPT PERMITTED LIENS); (II) IT HAS FULL CORPORATE POWER, AUTHORITY AND LEGAL RIGHT
TO PLEDGE ALL THE COLLATERAL PURSUANT TO THIS AGREEMENT; (III) THIS AGREEMENT HAS BEEN DULY
AUTHORIZED, EXECUTED AND DELIVERED BY SUCH PLEDGOR AND CONSTITUTES A LEGAL, VALID AND BINDING
OBLIGATION OF SUCH PLEDGOR ENFORCEABLE IN ACCORDANCE WITH ITS TERMS, EXCEPT TO THE EXTENT THAT THE
ENFORCEABILITY HEREOF MAY BE LIMITED BY APPLICABLE BANKRUPTCY, INSOLVENCY, FRAUDULENT CONVEYANCE,
REORGANIZATION, MORATORIUM OR OTHER SIMILAR LAWS GENERALLY AFFECTING CREDITORS’ RIGHTS AND BY
EQUITABLE PRINCIPLES (REGARDLESS OF WHETHER ENFORCEMENT IS SOUGHT IN EQUITY OR AT LAW); (IV) EXCEPT
TO THE EXTENT ALREADY OBTAINED OR MADE, NO CONSENT OF ANY OTHER PARTY (INCLUDING, WITHOUT
LIMITATION, ANY STOCKHOLDER OR CREDITOR OF SUCH PLEDGOR OR ANY OF ITS SUBSIDIARIES) AND NO CONSENT,
LICENSE, PERMIT, APPROVAL OR AUTHORIZATION OF, EXEMPTION BY, NOTICE OR REPORT TO, OR REGISTRATION,
FILING OR DECLARATION WITH, ANY GOVERNMENTAL AUTHORITY IS REQUIRED TO BE OBTAINED BY SUCH PLEDGOR
IN CONNECTION WITH (W) THE EXECUTION, DELIVERY OR PERFORMANCE OF THIS AGREEMENT, (X) THE VALIDITY
OR ENFORCEABILITY OF THIS AGREEMENT, (Y) THE PERFECTION OR ENFORCEABILITY OF THE COLLATERAL AGENT’S
SECURITY INTEREST IN THE COLLATERAL OR (Z) EXCEPT FOR COMPLIANCE WITH OR AS MAY BE REQUIRED BY
APPLICABLE SECURITIES LAWS, THE EXERCISE BY THE COLLATERAL AGENT OF ANY OF ITS RIGHTS OR REMEDIES
PROVIDED HEREIN; (V) THE EXECUTION, DELIVERY AND PERFORMANCE OF THIS AGREEMENT WILL NOT VIOLATE ANY
PROVISION OF ANY APPLICABLE LAW OR REGULATION OR OF ANY ORDER, JUDGMENT, WRIT, AWARD OR DECREE OF
ANY COURT, ARBITRATOR OR GOVERNMENTAL AUTHORITY, DOMESTIC OR FOREIGN, APPLICABLE TO SUCH PLEDGOR,
OR OF THE CERTIFICATE OF INCORPORATION OR BY-LAWS OF SUCH PLEDGOR OR OF ANY SECURITIES ISSUED BY
SUCH PLEDGOR OR ANY OF ITS SUBSIDIARIES, OR OF ANY MATERIAL MORTGAGE, INDENTURE, LEASE, LOAN
AGREEMENT, CREDIT AGREEMENT OR OTHER CONTRACT, AGREEMENT OR INSTRUMENT OR UNDERTAKING TO WHICH SUCH
PLEDGOR OR ANY OF ITS SUBSIDIARIES IS A PARTY OR WHICH PURPORTS TO BE BINDING UPON SUCH PLEDGOR OR
ANY OF ITS SUBSIDIARIES OR UPON ANY OF THEIR RESPECTIVE MATERIAL ASSETS AND WILL NOT RESULT IN THE
CREATION OR IMPOSITION OF (OR THE OBLIGATION TO CREATE OR IMPOSE) ANY LIEN OR ENCUMBRANCE ON

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ANY OF THE ASSETS OF SUCH PLEDGOR OR ANY OF ITS SUBSIDIARIES EXCEPT AS CONTEMPLATED BY THIS
AGREEMENT; (VI) ALL THE SHARES OF THE PLEDGED STOCK AND PLEDGED INTERESTS HAVE BEEN DULY AND
VALIDLY ISSUED, ARE FULLY PAID AND NON-ASSESSABLE (IN THE CASE OF PLEDGED STOCK) AND ARE SUBJECT TO
NO OPTIONS TO PURCHASE OR SIMILAR RIGHTS; (VII) EACH OF THE PLEDGED NOTES TO THE EXTENT EXECUTED BY
THE COMPANY OR ANY OF ITS SUBSIDIARIES CONSTITUTES, OR WHEN EXECUTED BY THE OBLIGOR THEREOF WILL
CONSTITUTE, THE LEGAL, VALID AND BINDING OBLIGATION OF SUCH OBLIGOR, ENFORCEABLE IN ACCORDANCE WITH
ITS TERMS, EXCEPT TO THE EXTENT THAT THE ENFORCEABILITY THEREOF MAY BY LIMITED BY APPLICABLE
BANKRUPTCY, INSOLVENCY, REORGANIZATION, MORATORIUM OR OTHER SIMILAR LAWS GENERALLY AFFECTING
CREDITORS’ RIGHTS AND BY EQUITABLE PRINCIPLES (REGARDLESS OF WHETHER ENFORCEMENT IS SOUGHT IN
EQUITY OR AT LAW); AND (VIII) THE PLEDGE, COLLATERAL ASSIGNMENT AND, IN THE CASE OF CERTIFICATED
SECURITIES (OTHER THAN THE PLEDGED STOCK OF COINMACH CORP. FOR SO LONG AS THE INTERCREDITOR
AGREEMENT REMAINS IN FULL FORCE AND EFFECT), DELIVERY TO THE COLLATERAL AGENT OF THE SECURITIES OR,
IN THE CASE OF UNCERTIFICATED SECURITIES AND SECURITIES OF COINMACH CORP., THE FILING OF A
FINANCING STATEMENT NAMING SUCH PLEDGOR, AS DEBTOR, AND THE COLLATERAL AGENT, AS SECURED PARTY, IN
EACH CASE PURSUANT TO THIS AGREEMENT CREATES A VALID AND PERFECTED LIEN ON THE COLLATERAL, SUBJECT
TO NO OTHER LIEN OR TO ANY AGREEMENT PURPORTING TO GRANT TO ANY THIRD PARTY A LIEN ON THE PROPERTY
OR ASSETS OF THE PLEDGOR WHICH WOULD INCLUDE THE COLLATERAL, EXCEPT PERMITTED LIENS. EACH PLEDGOR
COVENANTS AND AGREES THAT IT WILL TAKE COMMERCIALLY REASONABLE STEPS TO DEFEND THE COLLATERAL
AGENT’S RIGHT, TITLE AND SECURITY INTEREST IN AND TO THE COLLATERAL AGAINST THE CLAIMS AND DEMANDS
OF ALL PERSONS WHOMSOEVER; AND EACH PLEDGOR COVENANTS AND AGREES THAT IT WILL HAVE LIKE TITLE TO
AND RIGHT TO PLEDGE ANY OTHER PROPERTY AT ANY TIME HEREAFTER PLEDGED TO THE COLLATERAL AGENT AS
COLLATERAL HEREUNDER AND WILL LIKEWISE TAKE COMMERCIALLY REASONABLE STEPS TO DEFEND THE RIGHT
THERETO AND SECURITY INTEREST THEREIN OF THE COLLATERAL AGENT AND THE SECURED CREDITORS.

          2. Each Pledgor further represents, warrants and covenants that the exact legal name, type of
organization and jurisdiction of organization (together with the organizational identification
number, if any, issued by such jurisdiction to such Pledgor) of such Pledgor is set forth in
Schedule B hereto. Such Pledgor shall not “reincorporate” or “reorganize” or otherwise
cause the Collateral to be transferred to a Person incorporated or organized in another state
except to the extent (x) permitted pursuant to the provisions of the Indenture, (y) it shall have
given to Collateral Agent not less than 10 days’ prior written notice (in the form of an officers’
certificate) of its intention so to do clearly describing such transaction and providing such other
information in connection therewith as Collateral Agent may reasonably request and (z) with respect
to such transaction, such Pledgor shall have taken all action reasonably satisfactory to Collateral
Agent to maintain the perfection and priority of the security interest of Collateral Agent for the
benefit of the Secured Parties in the Collateral intended to be granted hereby.

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     (a) Intercompany Note and Intercompany Note Guaranty. No Pledgor shall:

     (1) sell, convey, transfer or assign (or otherwise engage in any other transfer for
value of) the Intercompany Note or any of its interest therein;

     (2) amend, supplement, or waive any provision of the Intercompany Note, other than any
amendment, supplement or waiver which would not have an adverse effect on the interests of
the Collateral Agent or any other Secured Creditor, the Indenture or the Notes, or
subordinate its rights under the Intercompany Note or the Senior Secured to the rights of
any other creditor of Coinmach Corp.;

     (3) compromise, reduce, forgive or release or extend the time for payment of any
obligation of Coinmach Corp. under the Intercompany Note; or

     (4) take or omit to take any action the taking or the omission of which would result in
any material impairment or alteration of any obligation of Coinmach Corp. under the
Intercompany Note.

          EIGHT-ARTICLE THIRTY PLEDGOR’S OBLIGATIONS ABSOLUTE, ETC. THE OBLIGATIONS OF EACH PLEDGOR
UNDER THIS AGREEMENT SHALL BE ABSOLUTE AND UNCONDITIONAL AND SHALL REMAIN IN FULL FORCE AND EFFECT
WITHOUT REGARD TO, AND SHALL NOT BE RELEASED, SUSPENDED, DISCHARGED, TERMINATED OR OTHERWISE
AFFECTED BY, ANY CIRCUMSTANCE OR OCCURRENCE WHATSOEVER, INCLUDING, WITHOUT LIMITATION: (A) ANY
RENEWAL, EXTENSION, AMENDMENT OR MODIFICATION OF OR ADDITION OR SUPPLEMENT TO OR DELETION FROM THE
INDENTURE OR ANY OTHER INSTRUMENT OR AGREEMENT REFERRED TO THEREIN, OR ANY ASSIGNMENT OR TRANSFER
OF ANY THEREOF; (B) ANY WAIVER, CONSENT, EXTENSION, INDULGENCE OR OTHER ACTION OR INACTION UNDER OR
IN RESPECT OF ANY SUCH AGREEMENT OR INSTRUMENT, INCLUDING, WITHOUT LIMITATION, THIS AGREEMENT; (C)
ANY FURNISHING OF ANY ADDITIONAL SECURITY TO THE COLLATERAL AGENT OR ITS ASSIGNEE OR ANY ACCEPTANCE
THEREOF OR ANY RELEASE OF ANY SECURITY BY THE COLLATERAL AGENT OR ITS ASSIGNEE; (D) ANY LIMITATION
ON ANY PARTY’S LIABILITY OR OBLIGATIONS UNDER ANY SUCH INSTRUMENT OR AGREEMENT OR ANY INVALIDITY OR
UNENFORCEABILITY, IN WHOLE OR IN PART, OF ANY SUCH INSTRUMENT OR AGREEMENT OR ANY TERM THEREOF OR
(E) ANY BANKRUPTCY, INSOLVENCY, REORGANIZATION, COMPOSITION, ADJUSTMENT, DISSOLUTION, LIQUIDATION
OR OTHER LIKE PROCEEDING RELATING TO ANY PLEDGOR OR ANY SUBSIDIARY OF SUCH PLEDGOR, OR ANY ACTION
TAKEN WITH RESPECT TO THIS AGREEMENT BY ANY TRUSTEE OR RECEIVER, OR BY ANY COURT, IN ANY SUCH
PROCEEDING, WHETHER OR NOT SUCH PLEDGOR SHALL HAVE NOTICE OR KNOWLEDGE OF ANY OF THE FOREGOING.

          NINE-ARTICLE THIRTY REGISTRATION, ETC. IF AT ANY TIME WHEN THE COLLATERAL AGENT SHALL
DETERMINE TO EXERCISE ITS RIGHT TO SELL ALL OR ANY PART OF THE PLEDGED SECURITIES PURSUANT TO
SECTION 7, AND SUCH PLEDGED SECURITIES OR THE PART THEREOF TO BE SOLD SHALL NOT, FOR

I-13

 

ANY REASON WHATSOEVER, BE EFFECTIVELY REGISTERED UNDER THE SECURITIES ACT OF 1933, AS THEN IN
EFFECT, THE COLLATERAL AGENT MAY BUT WITHOUT ANY OBLIGATION, IN ITS SOLE AND ABSOLUTE DISCRETION,
SELL SUCH PLEDGED SECURITIES OR PART THEREOF BY PRIVATE SALE IN SUCH MANNER AND UNDER SUCH
CIRCUMSTANCES AS THE COLLATERAL AGENT MAY DEEM REASONABLY NECESSARY OR ADVISABLE IN ORDER THAT SUCH
SALE MAY LEGALLY BE EFFECTED WITHOUT SUCH REGISTRATION. WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, IN ANY SUCH EVENT THE COLLATERAL AGENT, IN ITS COMMERCIALLY REASONABLE DISCRETION, (I)
MAY PROCEED TO MAKE SUCH PRIVATE SALE NOTWITHSTANDING THAT A REGISTRATION STATEMENT FOR THE PURPOSE
OF REGISTERING SUCH PLEDGED SECURITIES OR PART THEREOF SHALL HAVE BEEN FILED UNDER SUCH SECURITIES
ACT, (II) MAY APPROACH AND NEGOTIATE WITH A SINGLE POSSIBLE PURCHASER TO EFFECT SUCH SALE AND (III)
MAY RESTRICT SUCH SALE TO A PURCHASER WHO WILL REPRESENT AND AGREE THAT SUCH PURCHASER IS
PURCHASING FOR ITS OWN ACCOUNT, FOR INVESTMENT, AND NOT WITH A VIEW TO THE DISTRIBUTION OR SALE OF
SUCH PLEDGED SECURITIES OR PART THEREOF. IN THE EVENT OF ANY SUCH SALE, THE COLLATERAL AGENT SHALL
INCUR NO RESPONSIBILITY OR LIABILITY FOR SELLING ALL OR ANY PART OF THE PLEDGED SECURITIES AT A
PRICE WHICH THE COLLATERAL AGENT, IN ITS COMMERCIALLY REASONABLE DISCRETION, IN GOOD FAITH DEEMS
REASONABLE UNDER THE CIRCUMSTANCES, NOTWITHSTANDING THE POSSIBILITY THAT A SUBSTANTIALLY HIGHER
PRICE MIGHT BE REALIZED IF THE SALE WERE DEFERRED UNTIL AFTER REGISTRATION AS AFORESAID.

          ARTICLE FORTY TERMINATION; RELEASE. 4. ON THE TERMINATION DATE, THIS AGREEMENT AND THE
SECURITY INTEREST CREATED HEREBY SHALL TERMINATE, AND THE COLLATERAL AGENT SHALL, AT THE REQUEST
AND EXPENSE OF THE PLEDGORS, EXECUTE AND DELIVER TO THE PLEDGORS AS PROMPTLY THEREAFTER AS
REASONABLY PRACTICABLE A PROPER INSTRUMENT OR INSTRUMENTS PROVIDED TO IT ACKNOWLEDGING THE
SATISFACTION AND TERMINATION OF THIS AGREEMENT, AND WILL DULY ASSIGN, TRANSFER AND DELIVER TO THE
PLEDGORS (WITHOUT RECOURSE AND WITHOUT ANY REPRESENTATION OR WARRANTY OTHER THAN A REPRESENTATION
THAT THE COLLATERAL AGENT HAS NOT GRANTED ANY LIEN ON OR SECURITY INTEREST IN THE COLLATERAL) SUCH
OF THE COLLATERAL AS MAY BE IN THE POSSESSION OF THE COLLATERAL AGENT OR ANY OF ITS SUB-AGENTS AND
HAS NOT THERETOFORE BEEN SOLD OR OTHERWISE APPLIED OR RELEASED PURSUANT TO THIS AGREEMENT, TOGETHER
WITH ANY PROCEEDS OF COLLATERAL AT THE TIME HELD BY THE COLLATERAL AGENT OR ANY OF ITS SUB-AGENTS
HEREUNDER.

          3. Notwithstanding anything to the contrary contained above, upon the presentment of
satisfactory evidence to the Collateral Agent in its sole discretion that all obligations evidenced
by any Pledged Note have been repaid or otherwise satisfied or forgiven in full, and that any
payments received by the applicable Pledgor were permitted to be received by such Pledgor pursuant
to Section 6 hereof, the Collateral Agent shall, upon the request and at the

I-14

 

expense of such Pledgor, duly assign, transfer and deliver to such Pledgor (without recourse and
without any representation or warranty other than a representation that the Collateral Agent has
not granted any lien on or security interest in such Pledged Note) such Pledged Note if same is
then in the possession of the Collateral Agent or any of its sub-agents and has not theretofore
been sold or otherwise applied or released pursuant to this Agreement.

          4. In the event that any part of the Collateral is sold in connection with a sale permitted by
Section 4.16 of the Indenture or released in accordance with Section 11.05 of the Indenture and the
proceeds of such sale or sales or from such release are applied in accordance with, and to the
extent required by, the Indenture, to the extent required to be so applied, the Collateral Agent,
at the request and expense of the Pledgors, will duly assign, transfer and deliver to the
applicable Pledgor (without recourse and without any representation or warranty) such of the
Collateral as is then being (or has been) so sold or released and as may be in the possession of
the Collateral Agent or any of its sub-agents and has not theretofore been released pursuant to
this Agreement.

          5. At any time that any Pledgor desires that Collateral be released as provided in the
foregoing subsection (a), (b) or (c), it shall deliver to the Collateral Agent a certificate signed
by its chief financial officer stating that the release of the respective Collateral is permitted
pursuant to such subsection (a), (b) or (c).

          6. The Collateral Agent shall have no liability whatsoever to any Secured Creditor as the
result of any release of Collateral by it in accordance with this Section 18.

     ARTICLE FORTY-ONE NOTICES, ETC. ALL NOTICES AND COMMUNICATIONS HEREUNDER SHALL BE TELECOPIED
OR DELIVERED BY MESSENGER OR OVERNIGHT COURIER SERVICE AND ALL SUCH NOTICES AND COMMUNICATIONS
SHALL, WHEN MAILED, TELEGRAPHED, TELEXED, TELECOPIED, OR CABLED OR SENT BY OVERNIGHT COURIER, BE
EFFECTIVE WHEN DELIVERED TO THE TELEGRAPH COMPANY, CABLE COMPANY OR OVERNIGHT COURIER, AS THE CASE
MAY BE, OR SENT BY TELEX OR TELECOPIER AND WHEN MAILED SHALL BE EFFECTIVE THREE BUSINESS DAYS
FOLLOWING DEPOSIT IN THE MAIL WITH PROPER POSTAGE, EXCEPT THAT NOTICES AND COMMUNICATIONS TO THE
COLLATERAL AGENT SHALL NOT BE EFFECTIVE UNTIL RECEIVED BY THE COLLATERAL AGENT. ALL NOTICES AND
OTHER COMMUNICATIONS SHALL BE IN WRITING AND ADDRESSED AS FOLLOWS:

	 	(a)  	if to any Pledgor, at:
	 
	 	   	Coinmach Service Corp.

303 Sunnyside Boulevard

Plainview, New York 11803

Attention: Robert M. Doyle

I-15

 

	 	   	with a copy to:
	 
	 	   	Coinmach Corporation

521 East Morehead Street

Charlotte, North Carolina 28202

Attention: Stephen R. Kerrigan
	 
	 	   	with a copy to:
	 
	 	   	Mayer, Brown, Rowe & Maw LLP

1675 Broadway

New York, New York 10019

Attention: Ronald S. Brody
	 
	 	(b)  	if to the Collateral Agent, at:
	 
	 	   	The Bank of New York

101 Barclay Street

Floor 8W

New York, New York 10286

Attention: Corporate Trust Administration

or at such other address as shall have been furnished in writing by any Person described above to
and received by the party required to give notice hereunder.

          TWO-ARTICLE FORTY WAIVER; AMENDMENT. NONE OF THE TERMS AND CONDITIONS OF THIS AGREEMENT MAY
BE CHANGED, WAIVED, MODIFIED OR VARIED IN ANY MANNER WHATSOEVER EXCEPT IN ACCORDANCE WITH ARTICLE
NINE OF THE INDENTURE.

          THREE-ARTICLE FORTY MISCELLANEOUS. THIS AGREEMENT SHALL BE BINDING UPON THE PARTIES HERETO
AND THEIR RESPECTIVE SUCCESSORS AND ASSIGNS AND SHALL INURE TO THE BENEFIT OF AND BE ENFORCEABLE BY
EACH OF THE PARTIES HERETO AND ITS SUCCESSORS AND ASSIGNS. THIS AGREEMENT SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK. THE HEADINGS IN THIS
AGREEMENT ARE FOR PURPOSES OF REFERENCE ONLY AND SHALL NOT LIMIT OR DEFINE THE MEANING HEREOF.
THIS AGREEMENT MAY BE EXECUTED IN ANY NUMBER OF COUNTERPARTS, EACH OF WHICH SHALL BE AN ORIGINAL,
BUT ALL OF WHICH SHALL CONSTITUTE ONE INSTRUMENT. IN THE EVENT THAT ANY PROVISION OF THIS
AGREEMENT SHALL PROVE TO BE INVALID OR UNENFORCEABLE, SUCH PROVISION SHALL BE DEEMED TO BE
SEVERABLE FROM THE OTHER PROVISIONS OF THIS AGREEMENT, WHICH SHALL REMAIN BINDING ON ALL PARTIES
HERETO.

     FOUR-ARTICLE FORTY RECOURSE. THIS AGREEMENT IS MADE WITH FULL RECOURSE TO EACH PLEDGOR AND
PURSUANT TO AND UPON ALL THE

I-16

 

REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS ON THE PART OF SUCH PLEDGOR CONTAINED
HEREIN OR IN THE INDENTURE, AND OTHERWISE IN WRITING IN CONNECTION HEREWITH OR THEREWITH.

          FIVE-ARTICLE FORTY THE COLLATERAL AGENT. 5. The Collateral Agent will hold in accordance
with this Agreement all items of the Collateral at any time received under this Agreement. It is
expressly understood and agreed by the parties hereto and each Secured Creditor, by accepting the
benefits of this Agreement acknowledges and agrees that the obligations of the Collateral Agent as
holder of the Collateral and interests therein and with respect to the disposition thereof, and
otherwise under this Agreement, are only those expressly set forth in this Agreement. In
connection with its appointment and acting hereunder, the Collateral Agent shall be entitled to all
rights, privileges, benefits, protections, immunities and indemnities provided to it under the
Indenture.

          7. Beyond the exercise of reasonable care in the custody thereof, the Collateral Agent shall
have no duty as to any Collateral in its possession or control or in the possession or control of
any agent or bailee or any income thereon or as to preservation of rights against prior parties or
any other rights pertaining thereto and the Collateral Agent shall not be responsible for filing
any financing or continuation statements or recording any documents or instruments in any public
office at any time or times or otherwise perfecting or maintaining the perfection of any security
interest in the Collateral. The Collateral Agent shall be deemed to have exercised reasonable care
in the custody of the Collateral in its possession if the Collateral is accorded treatment
substantially equal to that which it accords its own property and shall not be liable or
responsible for any loss or diminution in the value of any of the Collateral, by reason of the act
or omission of any carrier, forwarding agency or other agent or bailee selected by the Collateral
Agent in good faith.

          8. The Collateral Agent shall not be responsible for the existence, genuineness or value of
any of the Collateral or for the validity, perfection, priority or enforceability of the Liens in
any of the Collateral, whether impaired by operation of law or by reason of any of any action or
omission to act on its part hereunder, except to the extent such action or omission constitutes
negligence, bad faith or wilful misconduct on the part of the Collateral Agent, for the validity or
sufficiency of the Collateral or any agreement or assignment contained therein, for the validity of
the title of the Pledgors to the Collateral, for insuring the Collateral or for the payment of
taxes, charges, assessments or Liens upon the Collateral or otherwise as to the maintenance of the
Collateral.

          9. The Collateral Agent shall have no duty to act outside of the United States in respect of
any Collateral located in the jurisdiction other than the United States.

     SIX-ARTICLE FORTY INTERCREDITOR AGREEMENT.

     (a) The Liens granted hereunder in favor of the Collateral Agent for the benefit of the
Secured Creditors in respect of the Shared Collateral and the exercise of any right or
remedy related thereto hereunder shall be subject, in each case, to the terms of the
Intercreditor Agreement.

I-17

 

     (b) In the event of any conflict between the terms and provisions of this Agreement and
of the Intercreditor Agreement, the terms and provisions of the Intercreditor Agreement
shall govern.

     (c) Notwithstanding anything to the contrary herein, any provision hereof that requires
any Pledgor to (i) deliver any Shared Collateral to the Collateral Agent or (ii) provide
that the Collateral Agent have control over such Shared Collateral may be satisfied by (A)
the delivery of such Shared Collateral by such Pledgor to the Credit Agreement Collateral
Agent for the benefit of the Lenders and the Collateral Agent for the benefit of the Secured
Creditors pursuant to Section 5.4 of the Intercreditor Agreement and (B) providing that the
Credit Agreement Collateral Agent be provided with control with respect to such Shared
Collateral of such Pledgor for the benefit of the Lenders and the Collateral Agent for the
benefit of Secured Creditors pursuant to Section 5.4 of the Intercreditor Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

I-18

 

          IN WITNESS WHEREOF, each Pledgor and the Collateral Agent have caused this Agreement to be
executed by their duly elected officers duly authorized as of the date first above written.

	 	 	 	 	 
	 	 	COINMACH SERVICE CORP.,
	 	 	as the Company and Pledgor
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 	 	COINMACH LAUNDRY CORPORATION,
	 	 	as Guarantor and Pledgor
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Collateral Agent
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:

I-19

 

SCHEDULE A

PLEDGOR: COINMACH SERVICE CORP.

Part I. Pledged Stock

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Percentage of	 
	 	 	 	 	 	 	 	 	 	 	Class of	 
	Name of	 	 	 	Number	 	 	 	 	Capital Stock	 
	Issuing Corporation	 	Type of Shares	 	of Shares	 	 	Certificate No(s).	 	of Issuer	 

Part II. Pledged Interests

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Percentage of all
	 	 	 	 	 	 	Outstanding
	     Name of Issuing	 	 	 	 	 	Interests
	Non-Corporate Entity	 	Type of Interest	 	Certificate No(s).	 	of Issuer
	None.
	 	 	 	 	 	 

Part III. Pledged Notes

	 	 	 	 	 	 	 	 	 	 	 
	Name of	 	Principal	 	Date of	 	 	 	 	 	Maturity
	  Issuer	 	Amount	 	Issuance	 	Interest Rate	 	Date

I-20

 

PLEDGOR: COINMACH LAUNDRY CORPORATION

Part I. Pledged Stock

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Percentage of
	 	 	 	 	 	 	 	 	 	 	 	 	Class of
	       Name of	 	 	 	Number	 	Certificate	 	Capital Stock
	Issuing Corporation	 	Type of Shares	 	of Shares	 	No(s).	 	of Issuer

Part II. Pledged Interests

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Percentage of all
	 	 	 	 	 	 	Outstanding
	Name of Issuing	 	 	 	Certificate	 	Interests
	Non-Corporate Entity	 	Type of Interest	 	 No(s).	 	of Issuer
	None.
	 	 	 	 	 	 

Part III. Pledged Notes

	 	 	 	 	 	 	 	 	 
	Name of	 	Principal	 	Date of	 	 	 	Maturity
	Issuer	 	Amount	 	Issuance	 	Interest Rate	 	Date
	None.
	 	 	 	 	 	 	 	 

* NOTE: A SEPARATE SHEET SHOULD BE USED FOR EACH PLEDGOR.

I-21

 

SCHEDULE B

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Organizational	 	 	 	 
	Pledgor’s	 	Type of	 	Jurisdiction of	 	Identification	 	Chief Executive	 	Principal Place
	Exact Name	 	Organization	 	Organization	 	Number	 	Office	 	of Business

I-22

 

EXHIBIT 1

PLEDGE AMENDMENT

          This Pledge Amendment, dated ___, is delivered pursuant to Section 3.2 of
the Agreement referred to below. The undersigned hereby agrees that this Pledge Amendment may be
attached to the PLEDGE AGREEMENT, dated as of November 24, 2004, among the undersigned, certain
other parties identified therein and The Bank of New York, as Collateral Agent (the
“Agreement”; capitalized terms used herein and not defined have the meanings ascribed to
them in the Agreement) and that the Pledged Securities listed on this Pledge Amendment shall be
deemed to be and shall become part of the Collateral and shall secure all Obligations.

	 	 	 	 	 
	 	 	 	,
	 	 	 	 
	 	 	as Pledgor	 
	 
	 	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name: 

Title:

Part I. Pledged Stock

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Percentage of
	 	 	 	 	 	 	 	 	Class of
	Name of	 	 	 	Number	 	Certificate	 	Capital Stock
	Issuing Corporation	 	Type of Shares	 	of Shares	 	No(s).	 	of Issuer
	 
	 	 	 	 	 	 	 	 

Part II. Pledged Interests

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Percentage of all
	 	 	 	 	 	 	Outstanding
	Name of Issuing	 	 	 	 	 	Interests
	Non-Corporate Entity	 	Type of Interest	 	Certificate No(s).	 	of Issuer
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 

Part III. Pledged Notes

I-23

 

	 	 	 	 	 	 	 	 	 
	Name of	 	Principal	 	Date of	 	 	 	Maturity
	Issuer	 	Amount	 	Issuance	 	Interest Rate	 	Date
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

I-24

 

EXHIBIT 2

FORM OF ISSUER ACKNOWLEDGMENT

          The undersigned hereby (i) acknowledges receipt of a copy of the PLEDGE AGREEMENT (as amended,
amended and restated, supplemented or otherwise modified from time to time, the
“Agreement”; capitalized terms used herein but not defined herein have the meanings given
such terms in the Agreement), dated as of November 24, 2004, among COINMACH SERVICE CORP., COIMACH
LAUNDRY CORPORATION and THE BANK OF NEW YORK, as collateral agent (in such capacity, the
“Collateral Agent”), (ii) agrees promptly to note on its books the security interests
granted and confirmed under the Agreement in [DESCRIBE SECURITIES] (the “Uncertificated
Securities”), (iii) agrees that it will comply with the instructions of the Collateral Agent
with respect to the Uncertificated Securities and all proceeds and other interests related thereto
constituting Collateral without further consent by the applicable Pledgor, (iv) agrees to notify
the Collateral Agent upon obtaining knowledge of any interest in favor of any Person in the
Uncertificated Securities or any related Collateral that is adverse to the interest of the
Collateral Agent therein and (v) waives any right or requirement at any time hereafter to receive a
copy of the Agreement in connection with the registration of the Uncertificated Securities
thereunder in the name of the Collateral Agent or its nominee or the exercise of voting rights by
the Collateral Agent or its nominee.

	 	 	 	 	 
	 	[NAME OF ISSUER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

I-25

 

	 	 	 	 	 

EXHIBIT J

FORM OF

INTERCREDITOR AGREEMENT 

          This INTERCREDITOR AGREEMENT is dated as of ___, and entered into by and among
COINMACH LAUNDRY CORPORATION, a Delaware corporation (the “Guarantor”), DEUTSCHE BANK TRUST COMPANY
AMERICAS, in its capacity as the collateral agent for the First Lien Creditors (including its
successors and assigns from time to time, the “First Lien Collateral Agent”) and THE BANK OF NEW
YORK, in its capacity as collateral agent for the Noteholders (including its successors and assigns
from time to time, the “Second Lien Collateral Agent”). Capitalized terms used herein shall have
the meanings set forth in Section 1 below; provided that capitalized terms defined in the Credit
Agreement used (but not otherwise defined) herein shall have the meanings ascribed to them in the
Credit Agreement as in effect on the date hereof.

W I T N E S S E T H:

          WHEREAS, Borrower, the Guarantor, the subsidiary guarantors from time to time party thereto,
the various financial institutions from time to time party thereto, the First Lien Collateral
Agent, as Administrative Agent and Collateral Agent, Deutsche Bank Securities Inc. (f/k/a Deutsche
Banc Alex. Brown Inc.), as Lead Arranger and Book Manager, J.P. Morgan Securities Inc. and Wachovia
Capital Markets, LLC (f/k/a First Union Securities, Inc.) as Syndication Agents and Credit Lyonnais
New York Branch, as Documentation Agent, are parties to the Credit Agreement, dated as of January
25, 2002 (as further amended, supplemented, amended and restated or otherwise modified from time to
time (including pursuant to the Limited Waiver and Amendment No. 1 and Agreement dated as of
November 15, 2004 (the “First Amendment”)) the “Credit Agreement”);

          WHEREAS, CSC, the Guarantor, the other guarantors from time to time party thereto and the
Second Lien Collateral Agent, as collateral agent and trustee, entered into an Indenture, dated as
of November 24, 2004 (as amended, supplemented, amended and restated or otherwise modified from
time to time, the “Indenture”), governing the rights and duties of CSC under its 11% Senior Secured
Notes due 2024 in an aggregate principal amount on the date thereof of $132,556,665 (together with
any such notes subsequently issued not in violation of the Indenture, the “Senior Secured Notes”);

          WHEREAS, the obligations of Borrower under the Credit Agreement and any Interest Rate
Protection Agreements or Other Hedging Agreements entered into with a counterparty who was a
Secured Party (or affiliate thereof) at the time such Interest Rate Protection Agreement or Other
Hedging Agreement was entered into will be secured by, among other things, a first priority
security interest in the Common Collateral pursuant to the terms of the Holdings Pledge Agreement;

J-1

 

          WHEREAS, the obligations of the Guarantor under the Indenture will be secured by, among other
things, a second priority security interest in the Common Collateral pursuant to the terms of the
Noteholder Collateral Documents and this Agreement;

          WHEREAS, the Holdings Pledge Agreement, the Indenture and the Noteholder Collateral Documents
provide, among other things, that the parties thereto shall set forth in this Agreement their
respective rights and remedies with respect to the Common Collateral (including the Pledged
Collateral) owned by the Guarantor; and

          WHEREAS, it is a condition precedent to the effectiveness of the First Amendment that the
parties hereto enter into this Agreement;

          NOW, THEREFORE, in consideration of the foregoing, the mutual covenants and obligations herein
set forth and for other good and valuable consideration, the adequacy and receipt of which are
hereby acknowledged, and in reliance upon the representations, warranties and covenants herein
contained, the parties hereto, intending to be legally bound, hereby agree as follows:

     SEVEN-ARTICLE FORTY DEFINITIONS. AS USED IN THIS AGREEMENT, THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS (SUCH MEANINGS TO BE EQUALLY APPLICABLE TO BOTH THE SINGULAR AND THE PLURAL
FORM OF THE TERMS INDICATED):

     “Agreement” means this Intercreditor Agreement, as amended, supplemented, amended and
restated or otherwise modified from time to time in accordance with the terms hereof.

     “Borrower” means Coinmach Corporation, a Delaware corporation.

     “Common Collateral” means the Collateral, as such term is defined in the Holdings
Pledge Agreement.

     “Comparable Noteholder Collateral Document” means, in relation to any Common Collateral
subject to any Security Document, that Noteholder Collateral Document which creates a
security interest in the same Common Collateral, granted by the Guarantor.

     “Credit Agreement” is defined in the first recital; provided that (i) the term Credit
Agreement shall (x) also include any renewal, extension, refunding, restructuring,
replacement or refinancing thereof (whether with the original collateral agent and lenders
or another collateral agent or agents or other lenders, whether provided under the original
Credit Agreement or any other credit or other agreement or indenture and whether entered
into concurrently with or subsequent to the termination of the prior Credit Agreement);
provided that any such renewal, extension, refunding, restructuring, replacement or
refinancing does not increase the principal amount thereof beyond in violation of the
restrictions in the Indenture and (y) exclude the Senior Secured Notes and other Noteholder
Documents and (ii) if at any time a Discharge of Lender Claims
occurs with re-

J-2

 

spect to the Credit Agreement (without giving effect to Section 5.5), then, to the
extent provided in Section 5.5, the term “Credit Agreement” shall mean the Future First-Lien
Credit Facility designated by Borrower in accordance with the terms of such section.

     “CSC” means Coinmach Service Corp., a Delaware corporation.

     “DIP Financing” is defined in Section 6.1.

     “Discharge of Lender Claims” means, except to the extent otherwise provided in Sections
5.5 and 6.5, the payment in full in cash of all Obligations, the expiration, termination or
cash collateralization of all Letters of Credit, pursuant (for purposes of cash
collateralization) to the terms thereof and the Credit Agreement, the termination of all
commitments to extend credit under the Credit Agreement and the payment in full in cash of
all other Lender Claims (other than Obligations for indemnification in respect of which no
claim or demand for payment has been made and no notice for indemnification has been issued
by the indemnitee at such time), as may be evidenced by a “pay-off” letter signed by an
agent for the Lenders under the Credit Agreement.

     “Disposition” is defined in Section 5.1(a)(i).

     “First Amendment” is defined in the first recital.

     “First Lien Collateral Agent” means, in addition to the First Lien Collateral Agent as
defined in the preamble, the then acting agent for the First Lien Creditors under the Loan
Documents and any successor or assign thereto exercising substantially the same rights and
powers.

     “First Lien Creditors” shall mean the “Secured Creditors” (as defined in the Credit
Agreement) and any other Persons holding Lender Claims, including the First Lien Collateral
Agent.

     “Future First-Lien Credit Facility” shall mean the Credit Agreement and any Credit
Agreement (as defined in the Indenture) that is designated by Borrower as a “First-Lien
Credit Facility” for purposes of the Indenture; provided that the First Lien Creditors under
any Credit Agreement then in effect have consented to such designation.

     “Guarantor” is defined in the preamble.

     “Holdings Pledge Agreement” is defined in the Credit Agreement, provided that the term
“Holdings Pledge Agreement” shall include any amendment (including Amendment No. 1 thereto
dated as of the date hereof), amendment and restatement, supplement or other modification
thereto and any other document or instrument evidencing the Guarantor’s pledge of Common
Collateral under any Future First-Lien Credit Facility as any such document or instrument
may from time to time be amended, supplemented, amended and restated or otherwise modified
in a manner not inconsistent with this Agreement.

J-3

 

     “Indenture” is defined in the second recital.

     “Insolvency or Liquidation Proceeding” means with respect to any Person (a) any
voluntary or involuntary case or proceeding under the Bankruptcy Code with respect to such
Person or any of its subsidiaries as a debtor, (b) any other voluntary or involuntary
insolvency, reorganization or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or other similar case or proceeding with respect to such Person
or any of its subsidiaries as a debtor or with respect to any substantial part of their
respective assets, (c) any liquidation, dissolution, reorganization or winding up of such
Person or any of its subsidiaries whether voluntary or involuntary and whether or not
involving insolvency or bankruptcy or (d) any assignment for the benefit of creditors or any
other marshalling of assets and liabilities of such Person or any of its subsidiaries.

     “Lender Claims” means all Obligations outstanding under one or more of the Loan
Documents. Lender Claims shall include all interest accrued or accruing (or which would,
absent the commencement of an Insolvency or Liquidation Proceeding, accrue) after the
commencement of an Insolvency or Liquidation Proceeding in accordance with and at the rate
specified in the Credit Agreement whether or not the claim for such interest is allowed as a
claim in such Insolvency or Liquidation Proceeding. To the extent any payment with respect
to the Lender Claims (whether by or on behalf of any Obligor, as proceeds of security,
enforcement of any right of setoff or otherwise) is declared to be fraudulent or
preferential in any respect, set aside or required to be paid to a debtor in possession,
trustee, receiver or similar Person, then the Obligations or part thereof originally
intended to be satisfied shall be deemed to be reinstated and outstanding as if such payment
had not occurred.

     “Lender Collateral” means any of the assets of the Obligors, whether real, personal or
mixed, on which the First Lien Creditors or any of them now or hereafter holds a Lien as
security for any Lender Claim (regardless of the effect of the application of any laws
relating to fraudulent transfers or conveyances).

     “Lender Liens” means Liens on Common Collateral or Lender Collateral in favor of the
First Lien Collateral Agent on behalf of the First Lien Creditors created as collateral
security for the Lender Claims.

     “Loan Documents” means the Credit Agreement, the Credit Documents, and all documents
and instruments evidencing any obligation under any Future First-Lien Credit Facility, and
any other related document or instrument executed or delivered pursuant to any Loan Document
or Future First-Lien Credit Facility at any time or otherwise evidencing Lender Claims, as
any such document or instrument from time to time may be amended, supplemented, amended and
restated or otherwise modified from time to time; provided that any such modification does
not increase the principal amount thereof beyond the limit set forth in the Indenture.

     “Noteholder Claims” means all indebtedness, obligations and other liabilities
(contingent or otherwise) arising under or with respect to the Noteholder Documents or any
of them.

J-4

 

     “Noteholder Collateral” means any assets of CSC and its subsidiaries other than
Borrower and its subsidiaries, whether real, personal or mixed, on which the Noteholders or
any of them now or hereafter holds a Lien as security for any Noteholder Claim (regardless
of the effect of the application of any laws relating to fraudulent transfers or
conveyances).

     “Noteholder Collateral Documents” means, collectively, the Noteholder Security
Agreements, and any document or instrument executed and delivered pursuant to any Noteholder
Document at any time or otherwise pursuant to which a Lien is granted by an obligor under
the Indenture to secure the Noteholder Claims or under which rights or remedies with respect
to any such Lien are governed, as the same may be amended, supplemented, amended and
restated or otherwise modified from time to time.

     “Noteholder Documents” means, collectively, the Indenture, the Senior Secured Notes,
the Noteholder Collateral Documents and any other related document or instrument executed
and delivered pursuant to any Noteholder Document at any time or otherwise evidencing any
Noteholder Claims, as the same may be amended, supplemented, amended and restated or
otherwise modified from time to time.

     “Noteholders” means the Persons holding Noteholder Claims, including the trustee under
the Indenture and the Second Lien Collateral Agent, in each case, in their capacity as such.

     “Noteholder Security Agreements” means (i) the Security Agreement, dated as of November
24, 2004 among CSC, the Guarantor and the Second Lien Collateral Agent, as collateral agent
and (ii) the Pledge Agreement dated as of November 24, 2004 among CSC, the Guarantor and the
Second Lien Collateral Agent, as collateral agent, in each case as the same may be amended,
supplemented, amended and restated or otherwise modified from time to time.

     “Obligors” means Borrower, the Guarantor and each of the Subsidiary Guarantors.

     “Pledged Collateral” means the certificated securities constituting Common Collateral
in the possession or under the control (as defined in Section 8-106 of the UCC) of the First
Lien Collateral Agent (or its agents or bailees) in which a security interest is perfected
by such possession or control.

     “Recovery” shall have the meaning set forth in Section 6.5 hereof.

     “Required Lenders” shall mean, with respect to any amendment or modification of the
Credit Agreement or Future First-Lien Facility, or any termination or waiver of any
provision of the Credit Agreement or Future First-Lien Facility, or any consent or departure
by Borrower therefrom, those First Lien Creditors, the approval of which is required by the
Credit Agreement or such Future First-Lien Facility, as the case may be, to approve such
amendment or modification, termination or waiver or consent or departure.

J-5

 

     “Second Lien Collateral Agent” shall include, in addition to the Second Lien Collateral
Agent defined in the preamble, the then acting collateral agent under the Indenture and any
successor thereto exercising substantially the same rights and powers.

     “Senior Secured Notes” is defined in the second recital.

     EIGHT-ARTICLE FORTY LIEN PRIORITIES.

     SECTION 48.01. Priority. Notwithstanding the date, manner or order of grant, attachment or
perfection of any Liens granted to the Second Lien Collateral Agent for the benefit of the
Noteholders or to the Noteholders on the Common Collateral or of any Liens granted to the First
Lien Creditors on the Common Collateral and notwithstanding any provision of the UCC, or any
applicable law, the avoidance or setting aside of any Lien granted to the First Lien Creditors on
the Common Collateral, or the Noteholder Documents or the Loan Documents or any other circumstance
whatsoever, the Second Lien Collateral Agent, on behalf of itself and the Noteholders, hereby
agrees that: (i) any Lien on the Common Collateral securing the Lender Claims now or hereafter
held by the First Lien Collateral Agent or the First Lien Creditors shall be first in priority to
any Lien on the Common Collateral securing the Noteholder Claims and (ii) any Lien on the Common
Collateral now or hereafter held by the Second Lien Collateral Agent or the Noteholders regardless
of how acquired, whether by grant, statute, operation of law, subrogation or otherwise, shall be
second in priority in all respects to all Liens on the Common Collateral securing the Lender
Claims. All Liens on the Common Collateral securing the Lender Claims shall be and remain first in
priority to all Liens on the Common Collateral securing the Noteholder Claims for all purposes,
whether or not such Lender Liens are subordinated to any Lien securing any other obligation of the
Guarantor or any of its subsidiaries.

     SECTION 48.02. Prohibition on Contesting Liens. Each of the Second Lien Collateral Agent, for
itself and on behalf of each Noteholder, and the First Lien Collateral Agent, for itself and on
behalf of each other First Lien Creditor, agrees that it shall not (and hereby waives any right to)
contest or support any other Person in contesting, in any proceeding (including any Insolvency or
Liquidation Proceeding with respect to CSC or any of its subsidiaries), the priority, validity or
enforceability of a Lien held by the First Lien Creditors on the Lender Collateral or by the
Noteholders on the Common Collateral, as the case may be; provided that nothing in this Agreement
shall be construed to prevent or impair the rights of the First Lien Collateral Agent or any of the
First Lien Creditors to enforce this Agreement, including the priority of the Liens securing the
Lender Claims as provided in Sections 2.1 and 3.1 of this Agreement.

     SECTION 48.03. No New Liens. So long as the Discharge of Lender Claims has not occurred, (a)
the parties hereto agree that (i) neither the Second Lien Collateral Agent nor any Noteholder shall
acquire any security interest in or shall have any interest in (including following avoidance of
any Lender Liens) any property, real or otherwise (other than the Common Collateral), of any of
Borrower or any of its subsidiaries or any proceeds thereof and (ii) after the date hereof, if the
Second Lien Collateral Agent on behalf of the Noteholders, shall hold (to its actual knowledge),
any Lien on any assets of Borrower or any of its subsidiaries securing the Noteholder Claims that
are not also subject to the prior Lien of the First Lien Creditors under the Loan Documents, the
Second Lien Collateral Agent will notify the First Lien Collateral Agent in writing and, upon
demand by the First Lien Collateral Agent, shall either release such Lien or

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assign it to the First Lien Creditors as security for the Lender Claims (unless the applicable
Obligor shall promptly grant a similar Lien on such assets in favor of the First Lien Creditors and
such Lien shall be prior to the Lien of the Second Lien Collateral Agent on such assets) and (b)
each of Borrower and its subsidiaries agrees it will not grant, and the Guarantor agrees it will
not permit its Subsidiaries to grant, any Lien on any of its assets in favor of the Second Lien
Collateral Agent or the Noteholders unless Borrower or such subsidiary has granted a similar
perfected prior Lien on such assets in favor of the First Lien Creditors.

     NINE-ARTICLE FORTY ENFORCEMENT.

     SECTION 49.01. Exercise of Remedies.

     (a) So long as the Discharge of Lender Claims has not occurred, whether or not any Insolvency
or Liquidation Proceeding has been commenced by or against CSC or any of its subsidiaries, (i) the
Second Lien Collateral Agent and the Noteholders will not exercise or seek to exercise any rights
or remedies (including by way of setoff) with respect to any Common Collateral, institute any
action or proceeding with respect to such rights or remedies, including any action of foreclosure,
or contest, protest or object to any foreclosure proceeding or action brought by the First Lien
Collateral Agent or any other First Lien Creditor, or any other exercise by any such party of any
rights and remedies relating to the Common Collateral under the Credit Documents or otherwise, or
object to the forbearance by the First Lien Collateral Agent or the First Lien Creditors from
bringing or pursuing any foreclosure proceeding or action or any other exercise of any rights or
remedies relating to the Common Collateral and (ii) the First Lien Collateral Agent and the other
First Lien Creditors shall have the exclusive right to enforce rights, exercise remedies (including
by way of setoff and the right to credit bid their debt), refrain from enforcing or exercising
remedies, and make determinations regarding release, disposition, or restrictions with respect to
the Common Collateral without any consultation with or the consent of the Second Lien Collateral
Agent or any Noteholder, all as if the Lien of the Second Lien Collateral Agent for the benefit of
the Noteholders on the Common Collateral under the Noteholder Collateral Documents did not exist;
provided that (A) in any Insolvency or Liquidation Proceeding commenced by or against the
Guarantor, the Second Lien Collateral Agent or any Noteholder may file a claim or statement of
interest with respect to the Noteholder Claims, (B) the Second Lien Collateral Agent or any
Noteholder may take any action not adverse to the Liens on the Common Collateral securing the
Lender Claims in order to establish, preserve, perfect or protect its rights in the Common
Collateral, (C) the Second Lien Collateral Agent or any Noteholder shall be entitled to file any
pleadings, objections, motions or agreements which assert rights or interests available to
unsecured creditors of the Guarantor arising under either the Bankruptcy Code or applicable
non-bankruptcy law, in each case not otherwise in contravention of the terms of this Agreement and
(D) the Second Lien Collateral Agent or any Noteholder shall be entitled to file any proof of claim
and other filings and make any arguments and motions in order to preserve or protect its Lien on
the Common Collateral that are, in each case, not otherwise in contravention of the terms of this
Agreement, with respect to the Indenture and the Common Collateral. In exercising rights and
remedies with respect to the Common Collateral, the First Lien Collateral Agent or any other First
Lien Creditors may enforce the provisions of the Loan Documents and exercise remedies thereunder,
all in such order and in such manner as it may determine in the exercise of its sole discretion.
Such exercise and enforcement shall include the

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rights of an agent appointed by the First Lien Collateral Agent and the other First Lien
Creditors to sell or otherwise dispose of Common Collateral upon foreclosure, to incur expenses in
connection with such sale or disposition, and to exercise all the rights and remedies of a secured
party under the UCC of any applicable jurisdiction and of a secured creditor under bankruptcy or
similar laws of any applicable jurisdiction.

     (b) The Second Lien Collateral Agent, for itself and on behalf of the Noteholders, agrees that
neither the Second Lien Collateral Agent nor the Noteholders will take any action that would hinder
or cause to delay any exercise of remedies undertaken by the First Lien Collateral Agent or any
other First Lien Creditor under the Loan Documents as secured parties in respect of any Common
Collateral, including any sale, lease, exchange, transfer or other disposition of the Common
Collateral, whether by foreclosure or otherwise. The Second Lien Collateral Agent, for itself and
on behalf of the Noteholders, hereby waives any and all rights it or the Noteholders may have as a
junior lien creditor or otherwise (whether arising under the UCC or any other law) to object to the
manner in which the First Lien Collateral Agent or the other First Lien Creditors seek to enforce
the Liens granted on any of the Lender Collateral.

     (c) The Second Lien Collateral Agent hereby acknowledges and agrees that no covenant,
agreement or restriction contained in the Noteholder Documents shall restrict in any way the rights
and remedies of the First Lien Collateral Agent or the First Lien Creditors with respect to the
Common Collateral as set forth in this Agreement and the Loan Documents.

     SECTION 49.02. Cooperation. Subject to the proviso in clause (a)(ii) of Section 3.1, the
Second Lien Collateral Agent, on behalf of itself and the Noteholders, agrees that, unless and
until the Discharge of Lender Claims has occurred, it will not commence, or join with any Person
(other than the First Lien Creditors upon the request thereof) in commencing, any enforcement,
collection, execution, levy or foreclosure action or proceeding with respect to any Lien held by it
under any of the Noteholder Documents with respect to the Common Collateral.

     ARTICLE FIFTY PAYMENTS.

     SECTION 50.01. Application of Proceeds. So long as the Discharge of Lender Claims has not
occurred, the cash proceeds of Common Collateral received in connection with the sale, transfer or
other disposition of such Common Collateral upon the exercise of remedies shall be applied by the
First Lien Collateral Agent to the Lender Claims in such order as specified in the Credit Agreement
until the Discharge of Lender Claims has occurred. Upon the Discharge of Lender Claims, the First
Lien Collateral Agent shall deliver to the Second Lien Collateral Agent (for turnover to the
trustee under the Indenture for application in such order as specified in the Indenture and the
other applicable Noteholder Documents) any proceeds of Common Collateral held by it in the same
form as received, with any necessary endorsements or as a court of competent jurisdiction may
otherwise direct.

     SECTION 50.02. The Second Lien Collateral Agent, on behalf of itself and the Noteholders,
agrees that it will not, in connection with the exercise of any right or remedy (including by way
of setoff) with respect to any Common Collateral, take or receive any Common Collateral or any
proceeds of Common Collateral unless and until the Discharge of Lender Claims has occurred. In the
event any Common Collateral or proceeds thereof are received by

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the Second Lien Collateral Agent in violation of this Agreement, such Common Collateral and/or
proceeds shall be segregated and held in trust for the benefit of the First Lien Creditors in the
same form as received, and shall not be applied to the satisfaction of any Noteholder Claims.
Without limiting the generality of the foregoing, unless and until the Discharge of Lender Claims
has occurred, except as expressly provided in the proviso in clause (a)(ii) of Section 3.1, the
sole right of the Second Lien Collateral Agent and the Noteholders as secured parties with respect
to the Common Collateral is to hold a perfected Lien on the Common Collateral pursuant to the
Noteholder Documents for the period and to the extent granted therein and to receive a share of the
proceeds thereof, if any, after the Discharge of Lender Claims has occurred.

     SECTION 50.03. Each Obligor agrees that it will not, in connection with the exercise of any
right or remedy with respect to any Common Collateral by the Second Lien Collateral Agent or the
Noteholders, transfer, deliver or pay, as applicable, to the Second Lien Collateral Agent or any
Noteholder any Common Collateral or any proceeds of Common Collateral unless and until the
Discharge of Lender Claims has occurred.

     ONE-ARTICLE FIFTY OTHER AGREEMENTS.

     SECTION 51.01. Releases.

     (a) If, in connection with:

     (i) the exercise of any of the First Lien Collateral Agent’s remedies in respect of
Common Collateral provided for in Section 3.1, including any sale, lease, exchange, transfer
or other disposition (collectively, a “Disposition”) of any such Common Collateral; or

     (ii) a Disposition of any Common Collateral permitted under the terms of the Credit
Documents (whether or not an event of default thereunder, and as defined therein, has
occurred and is occurring),

the First Lien Collateral Agent, for itself and on behalf of any of the First Lien Creditors,
releases any of its Liens on any part of the Common Collateral, in each case other than in
connection with a Disposition under clause (ii) above only, if such Disposition would result in an
event of default under the Noteholder Documents, then the Liens, if any, of the Second Lien
Collateral Agent, for itself or for the benefit of the Noteholders, on such Common Collateral shall
be automatically, unconditionally and simultaneously released and the Second Lien Collateral Agent,
for itself or on behalf of any such Noteholder, promptly shall execute and deliver to the First
Lien Collateral Agent such termination statements, releases and other documents as the First Lien
Collateral Agent may request and provide to it to effectively confirm such release.

     (b) The Second Lien Collateral Agent, on behalf of the Noteholders, shall promptly, at the
request of the First Lien Collateral Agent or any officer or agent of the First Lien Collateral
Agent, from time to time in the First Lien Collateral Agent’s discretion, for the purpose of
carrying out the terms of this Section 5.1, take any and all appropriate action and to execute any
and all releases, documents and instruments provided to it by the First Lien Collateral Agent which
may be necessary or desirable to accomplish the purposes of this Section 5.1, including

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any financing statements, mortgage releases, intellectual property releases, endorsements or
other instruments of transfer or release.

     SECTION 51.02. Insurance. Unless and until the Discharge of Lender Claims has occurred, the
First Lien Collateral Agent and the other First Lien Creditors shall have the sole and exclusive
right, subject to the rights of the Obligors under the Loan Documents, to adjust settlement for any
insurance policy covering the Common Collateral in the event of any loss thereunder. Unless and
until the Discharge of Lender Claims has occurred (and whether or not the Revolving Loan Maturity
Date has occurred), all proceeds of any such policy and any such award if in respect of the Common
Collateral shall be paid to the First Lien Collateral Agent for the benefit of the First Lien
Creditors to the extent required under the Credit Agreement and thereafter to the Second Lien
Collateral Agent for the benefit of the Noteholders to the extent required under the applicable
Noteholder Documents and then to the owner of the subject property or as a court of competent
jurisdiction may otherwise direct.

     SECTION 51.03. Amendments to Noteholder Collateral Documents.

     (a) Unless and until the Discharge of Lender Claims has occurred, without the prior written
consent of the First Lien Collateral Agent and the Required Lenders, no Noteholder Collateral
Document may be amended, supplemented or otherwise modified or entered into to the extent such
amendment, supplement or modification, or the terms of any new Noteholder Collateral Document,
would be inconsistent in any material respect with any of the terms of this Agreement or the Loan
Documents. The Second Lien Collateral Agent agrees that each Noteholder Collateral Document
related to the Common Collateral shall include substantially the following language:

	   	“Notwithstanding anything herein to the contrary, the lien and security interest
granted to the Second Lien Collateral Agent pursuant to this Agreement and the
exercise of any right or remedy by the Second Lien Collateral Agent hereunder are
subject to the provisions of the Intercreditor Agreement, dated as of November 24,
2004 (as amended, supplemented, amended and restated or otherwise modified from time
to time, the “Intercreditor Agreement”), among Deutsche Bank Trust Company Americas,
as First Lien Collateral Agent, The Bank of New York as Second Lien Collateral
Agent, and Coinmach Laundry Corporation. In the event of any conflict between the
terms of the Intercreditor Agreement and this Agreement, the terms of the
Intercreditor Agreement shall govern.”

     (b) In the event the First Lien Collateral Agent enters into any amendment, waiver or consent
in respect of any of the Security Documents related to the Common Collateral for the purpose of
adding to, or deleting from, or waiving or consenting to any departures from any provisions of, any
Security Document or changing in any manner the rights of the First Lien Collateral Agent, the
First Lien Creditors or the Guarantor thereunder, then such amendment, waiver or consent shall
apply automatically to any comparable provision of the Comparable Noteholder Collateral Document
without the consent of the Second Lien Collateral Agent or the Noteholders and without any action
by the Second Lien Collateral Agent, CSC or any of its subsidiaries; provided that (A) no such
amendment, waiver or consent shall have the effect of removing assets subject to the Lien of the
Noteholder Collateral Documents, except to the extent that a release of

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such Lien is permitted by Section 5.1, (B) any such amendment, waiver or consent that
materially and adversely affects the rights of the Second Lien Collateral Agent and the Noteholders
(and not the holders of the Lender Liens in a like or similar manner) shall not apply to the
Noteholder Collateral Documents without the consent of the Second Lien Collateral Agent (acting at
the direction of the holders of the requsite aggregate principal amount of the applicable
Noteholder Claims, determined in accordance with the Indenture) and (C) notice of such amendment,
waiver or consent shall have been given to the Second Lien Collateral Agent; provided, further,
that (x) nothing contained in this clause (b) shall impair the rights of the First Lien Collateral
Agent and the holders of Lender Claims, or the obligations and agreements of the Second Lien
Collateral Agent and Noteholders, under Sections 3 and 5.1 hereof and (y) the Security Documents
and Noteholder Collateral Documents may, without the consent of the Second Lien Collateral Agent or
the Noteholders, be amended or modified pursuant to this Section 5.3(b) to secure additional
extensions of credit and add additional First Lien Creditors as long as such amendments or
modifications do not violate the express provisions of the Indenture.

     SECTION 51.04. Bailee for Perfection.

     (a) Solely for the purpose of perfecting the security interest granted in the Pledged
Collateral pursuant to the Noteholder Collateral Documents, and subject to the terms and conditions
of this Section 5.4, the First Lien Collateral Agent agrees to hold and acknowledges that it holds
the Pledged Collateral that is part of the Common Collateral in its possession or control (or in
the possession or control of its agents or bailees) as bailee for the Second Lien Collateral Agent
and any assignee.

     (b) The rights of the Second Lien Collateral Agent shall at all times be subject to the terms
of this Agreement and to the First Lien Collateral Agent’s rights under the Credit Documents.

     (c) The First Lien Collateral Agent shall have no obligation whatsoever to the Second Lien
Collateral Agent or any Noteholder to assure that the Pledged Collateral is genuine or owned by the
Guarantor or to preserve rights or benefits of any Person except as expressly set forth in this
Section 5.4. The duties or responsibilities of the First Lien Collateral Agent under this Section
5.4 shall be limited solely to holding the Pledged Collateral as bailee for the Second Lien
Collateral Agent for purposes of perfecting the Lien held by the Second Lien Collateral Agent.

     (d) Neither the First Lien Collateral Agent nor the Second Lien Collateral Agent shall have,
by reason of the Noteholder Collateral Documents or this Agreement or any other document a
fiduciary relationship in respect of the other. The First Lien Collateral Agent shall not have, by
reason of the Noteholder Collateral Documents or this Agreement or any other document, a fiduciary
relationship in respect of any Noteholder. The Second Lien Collateral Agent shall not have, by
reason of the Noteholder Collateral Documents or this Agreement or any other document a fiduciary
relationship in respect of the Lenders, in their capacity as such.

     (e) Upon the Discharge of Lender Claims, the First Lien Collateral Agent shall deliver to the
Second Lien Collateral Agent, at the sole cost and expense of the Guarantor, the Pledged Collateral
in its possession or control together with any necessary endorsements
(or oth-

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erwise allow the Second Lien Collateral Agent to obtain possession or control of such Pledged
Collateral) to the extent required by the Noteholder Documents or as a court of competent
jurisdiction may otherwise direct.

     SECTION 51.05. When Discharge of Lender Claims Deemed to Not Have Occurred. If at any time
after the Discharge of Lender Claims has occurred Borrower designates any Future First-Lien Credit
Facility to be the “Credit Agreement” hereunder, then such Discharge of Lender Claims shall
automatically be deemed not to have occurred for all purposes of this Agreement (other than with
respect to any actions taken prior to the date of such designation as a result of the occurrence of
such first Discharge of Lender Claims), and such Future First-Lien Credit Facility shall
automatically be treated as the Credit Agreement for all purposes of this Agreement, including
without limitation for purposes of the Lien priorities and rights in respect of Common Collateral
set forth herein. Upon receipt of notice of such designation (including the identity of the new
First Lien Collateral Agent), the Second Lien Collateral Agent shall promptly deliver at the
Guarantor’s sole cost to the First Lien Collateral Agent the Pledged Collateral in its possession
or control, together with any necessary endorsements (or otherwise allow such First Lien Collateral
Agent to obtain possession or control of such Pledged Collateral). If the Obligations under a
Future First-Lien Credit Facility are secured by the Common Collateral that do not also secure the
Noteholder Claims, then the Noteholder Claims shall be secured at such time by a second priority
Lien on such assets to the same extent provided in the Noteholder Collateral Documents.

     SECTION 51.06. Rights as Unsecured Creditors. Except as otherwise set forth in Section 2.1,
the Second Lien Collateral Agent and the Noteholders may exercise rights and remedies as unsecured
creditors against CSC or any subsidiary of CSC in accordance with the terms of the Noteholder
Documents and applicable law. Except as otherwise set forth in Section 2.1 of this Agreement, but
subject to the terms of the Loan Documents, nothing in this Agreement shall prohibit the receipt by
the Second Lien Collateral Agent or any Noteholder of the required payments of interest and
principal so long as such receipt is not the direct or indirect result of the exercise by the
Second Lien Collateral Agent or any Noteholder of rights or remedies as a secured creditor
(including setoff) or enforcement in contravention of this Agreement of any Lien with respect to
the Common Collateral held by any of them and such receipt is not proceeds of any Lender
Collateral. Nothing in this Agreement impairs or otherwise adversely affects any rights or
remedies the First Lien Collateral Agent or the First Lien Creditors may have with respect to the
Lender Collateral.

     TWO-ARTICLE FIFTY INSOLVENCY OR LIQUIDATION PROCEEDINGS.

     SECTION 52.01. Financing Issues. If the Guarantor or any of its subsidiaries shall be subject
to any Insolvency or Liquidation Proceeding and the First Lien Collateral Agent shall desire to
permit the use of cash collateral or to permit Borrower to obtain financing under section 363 or
section 364 of the Bankruptcy Code (“DIP Financing”), then the Second Lien Collateral Agent, on
behalf of itself and the Noteholders, agrees that it will raise no objection to such use or DIP
Financing and will not request adequate protection or any other relief in connection therewith
(except to the extent permitted by Section 6.3) and, to the extent the Lender Liens are junior in
priority or pari passu with such DIP Financing, will maintain the priority of its Liens in

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the Common Collateral as junior in priority to such Lender Liens on the same basis as the
other Liens securing the Noteholder Claims are second in priority to Lender Claims under this
Agreement.

     SECTION 52.02. Relief from the Automatic Stay. While any Lender Claims are outstanding under
the Loan Documents or any commitment under any DIP Financing provided by any First Lien Creditor is
in effect, the Second Lien Collateral Agent, on behalf of itself and the Noteholders, agrees that
none of them shall seek relief from the automatic stay or any other stay in any Insolvency or
Liquidation Proceeding with respect to the Guarantor or any of its subsidiaries in respect of the
Lender Collateral, without the prior written consent of the First Lien Collateral Agent and the
Required Lenders.

     SECTION 52.03. Adequate Protection. The Second Lien Collateral Agent, on behalf of itself and
the Noteholders, agrees that none of them shall contest (or support any other Person contesting)
(a) any request by the First Lien Collateral Agent or the other First Lien Creditors for adequate
protection or (b) any objection by the First Lien Collateral Agent or the other First Lien
Creditors to any motion, relief, action or proceeding which objection is based on the First Lien
Collateral Agent or the other First Lien Creditors claiming a lack of adequate protection.
Notwithstanding the foregoing contained in this Section 6.3, in any Insolvency or Liquidation
Proceeding with respect to CSC or any of its subsidiaries, in the event the Second Lien Collateral
Agent, on behalf of itself and the Noteholders, seeks or requests adequate protection and such
adequate protection is granted in the form of additional collateral that would constitute
collateral under the Loan Documents, then the Second Lien Collateral Agent, on behalf of itself or
any of the Noteholders, agrees that the First Lien Creditors shall also be granted a Lien on such
additional collateral as security for the Lender Claims and any such DIP Financing and that any
Lien on such additional collateral securing the Noteholder Claims shall be junior in priority to
the Liens on such collateral securing the Lender Claims and any such DIP Financing (and all
Obligations relating thereto) and any other Liens granted to the First Lien Creditors as adequate
protection on the same basis as the other Liens securing the Noteholder Claims are junior in
priority to such Lender Claims under this Agreement.

     SECTION 52.04. No Waiver; Voting Rights. Nothing contained herein shall prohibit or in any
way limit the First Lien Collateral Agent or any other First Lien Creditor from objecting in any
Insolvency or Liquidation Proceeding with respect to CSC or any of its subsidiaries involving or
attempting to involve any Lender Collateral or otherwise to any action taken by the Second Lien
Collateral Agent or any of the Noteholders, including the seeking by the Second Lien Collateral
Agent or any Noteholder of adequate protection or the asserting by the Second Lien Collateral Agent
or any Noteholder of any of its rights and remedies under the Noteholder Documents or otherwise.
In any Insolvency or Liquidation Proceeding with respect to CSC or any of its subsidiaries that
involves one or more Obligor or any Lender Collateral, neither the Second Lien Collateral Agent nor
any Noteholder shall vote any Noteholder Claim for any plan of reorganization of CSC or any of its
subsidiaries unless (i) such plan provides for the payment in full in cash of all Lender Claims on
the effective date of such plan of reorganization, (ii) such plan provides for treatment of the
Lender Claims in a manner that would result in such Lender Claims having relative lien (or, if the
obligations, property or assets to be distributed in respect of the Lender Claims under such plan
are unsecured, other) priority over the Noteholder Claims to

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at least the same extent as if such obligations, property or assets were secured by Liens and
subject to Section 6.6, whether or not such obligations, property or assets are, in fact, secured
by any such Liens, or (iii) the plan otherwise provides treatment of the Lender Claims in a manner
approved by the First Lien Collateral Agent and the Required Lenders.

     SECTION 52.05. Preference Issues. If any First Lien Creditor is required in any Insolvency or
Liquidation Proceeding with respect to CSC or any of its subsidiaries or otherwise to turn over or
otherwise pay to the estate of any Obligor any amount as a preference (a “Recovery”), then such
First Lien Creditor shall be entitled to a reinstatement of Lender Claims with respect to all such
recovered amounts. If this Agreement shall have been terminated prior to such Recovery, this
Agreement shall be reinstated in full force and effect, and such prior termination shall not
diminish, release, discharge, impair or otherwise affect the obligations of the parties hereto from
such date of reinstatement.

     SECTION 52.06. Reorganization Securities. If, in any Liquidation or Insolvency Proceeding
with respect to CSC or any of its subsidiaries, debt obligations of the reorganized debtor secured
by Liens upon any property of the reorganized debtor are distributed, pursuant to a plan of
reorganization or similar dispositive restructuring plan, both on account of Lender Claims and on
account of Noteholder Claims, then, to the extent the debt obligations distributed on account of
the Lender Claims and on account of the Noteholder Claims are secured by Liens upon the same
property, the provisions of this Agreement will survive the distribution of such debt obligations
pursuant to such plan and will apply with like effect to the Liens securing such debt obligations.

     SECTION 52.07. Expense Claims. Neither the Second Lien Collateral Agent nor any Noteholder
will assert or enforce, at any time prior to the Discharge of Lender Claims, any claim under
§506(c) of the Bankruptcy Code senior to or on a parity with the Lender Liens for costs or expenses
of preserving or disposing of any Lender Collateral.

     SECTION 52.08. Post-Petition Claims.

     (a) Neither the Second Lien Collateral Agent nor any Noteholder shall oppose or seek to
challenge any claim by the First Lien Collateral Agent or any other First Lien Creditor for
allowance in any Insolvency or Liquidation Proceeding with respect to the Guarantor or any of its
subsidiaries of Lender Claims consisting of post-petition interest, fees or expenses to the extent
of the value of the Lender Lien, without regard to the existence of the Lien of the Second Lien
Collateral Agent on behalf of the Noteholders on the Common Collateral.

     (b) Neither the First Lien Collateral Agent nor any other First Lien Creditor shall oppose or
seek to challenge any claim by the Second Lien Collateral Agent or any Noteholder for allowance in
any Insolvency or Liquidation Proceeding with respect to CSC or any of its subsidiaries of
Noteholder Claims consisting of post-petition interest, fees or expenses to the extent of the value
of the Lien of the Second Lien Collateral Agent on behalf of the Noteholders on the Noteholder
Collateral (after taking into account the Lender Liens).

     SECTION 52.09. Waiver. The Second Lien Collateral Agent, for itself and on behalf of the
Noteholders, waives any claim it may hereafter have against the First Lien Collateral

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Agent or any First Lien Creditor arising out of the election of any First Lien Creditor of the
application of section 1111(b)(2) of the Bankruptcy Code, and/or out of any cash collateral or
financing arrangement or out of any grant of a security interest in connection with the Common
Collateral in any Insolvency or Liquidation Proceeding with respect to CSC or any of its
subsidiaries.

     SECTION 52.10. Nature of Obligations; Post-Petition Interest. The Second Lien Collateral
Agent, on behalf of itself and the Noteholders, hereby acknowledges and agrees that (i) the
Noteholders’ claims against the Guarantor in respect of the Common Collateral constitute junior
claims separate and apart (and of a different class) from the senior claims of the First Lien
Creditors against the Guarantor in respect of the Common Collateral and (ii) the Lender Claims
include all interest that accrues after the commencement of any case, proceeding or other action
relating to the bankruptcy, insolvency, receivership, reorganization or similar proceeding of any
Obligor at the rate provided for in the applicable Loan Documents governing the same, whether or
not a claim for post-petition interest is allowed or allowable in any such case, proceeding or
other action. To further effectuate the intent of the parties as provided in the immediately
preceding sentence, if it is held that the claims against the Guarantor in respect of the Common
Collateral constitute only one secured claim (rather than separate classes of senior and junior
claims), then the Second Lien Collateral Agent, on behalf of the Noteholders, and each of the
Noteholders hereby acknowledge and agree that all distributions pursuant to Section 4.1 or
otherwise shall be made as if there were separate classes of senior and junior secured claims
against the Guarantor in respect of the Common Collateral (with the effect being that, to the
extent that the aggregate value of the Common Collateral is sufficient (for this purpose ignoring
all claims held by the Second Lien Collateral Agent on behalf of the Noteholders), the First Lien
Creditors shall be entitled to receive, in addition to amounts distributed to them in respect of
principal, pre-petition interest and other claims, all amounts owing in respect of post-petition
interest at the relevant contract rate (even though such claims may or may not be allowed in whole
or in part in the respective bankruptcy, insolvency, reorganization, receivership or similar
proceeding) before any distribution is made in respect of the claims held by the Second Lien
Collateral Agent, on behalf of the Noteholders, with the Second Lien Collateral Agent and each of
the Noteholders hereby acknowledging and agreeing to turn over to the First Lien Collateral Agent
for the benefit of holders of the Lender Claims all amounts otherwise received or receivable by
them to the extent needed to effectuate the intent of this sentence even if such turnover of
amounts has the effect of reducing the amount of the claim of the Noteholders).

     SECTION 52.11. Proofs of Claim. Subject to the limitations set forth in this Agreement, the
First Lien Collateral Agent may file proofs of claim and other pleadings and motions with respect
to any Lender Claims, the Indenture or the Common Collateral in any Insolvency or Liquidation
Proceeding with respect to CSC or any of its subsidiaries. If a proper proof of claim has not been
filed in the form required in such Insolvency or Liquidation Proceeding at least ten (10) days
prior to the expiration of the time for filing thereof, the First Lien Collateral Agent shall have
the right (but not the duty) to file an appropriate claim for and on behalf of the Noteholders with
respect to the Indenture or any of the Common Collateral; provided that the First Lien Collateral
Agent shall have provided written notice of its intent to file a proof of claim on behalf of the
Noteholders to the Second Lien Collateral Agent at least the lesser of (x) three (3) days and (y)
the number of days remaining in the ten (10) day period described in this sentence,

J-15

 

in each case before so filing. In furtherance of the foregoing, the Second Lien Collateral
Agent hereby agrees upon request of the First Lien Collateral Agent, to promptly execute and
deliver any document or instrument provided to it that the First Lien Collateral Agent is required
or permitted to deliver pursuant to this Section 6.11.

     THREE-ARTICLE FIFTY RELIANCE; WAIVERS; ETC.

     SECTION 53.01. Reliance. The consent by the First Lien Creditors to the execution and
delivery of the Noteholder Documents and the grant to the Second Lien Collateral Agent, on behalf
of the Noteholders, of a Lien on the Common Collateral and all loans and other extensions of credit
made or deemed made on and after the date hereof by the First Lien Creditors to the Obligors shall
be deemed to have been given and made in reliance upon this Agreement. The Second Lien Collateral
Agent, on behalf of itself and the Noteholders, acknowledges that it and the Noteholders have,
independently and without reliance on the First Lien Collateral Agent or any other First Lien
Creditor, and based on documents and information deemed by them appropriate, made their own credit
analysis and decision to enter into the Indenture, this Agreement and the transactions contemplated
hereby and thereby and they will continue to make their own credit decision in taking or not taking
any action under the Indenture or this Agreement.

     SECTION 53.02. No Warranties or Liability. The Second Lien Collateral Agent, on behalf of
itself and Noteholders, acknowledges and agrees that each of the First Lien Collateral Agent and
the other First Lien Creditors has made no express or implied representation or warranty, including
with respect to the execution, validity, legality, completeness, collectibility or enforceability
of any of the Loan Documents. The First Lien Creditors will be entitled to manage and supervise
their respective loans and extensions of credit to Borrower in accordance with law and as they may
otherwise, in their sole discretion, deem appropriate, and the First Lien Creditors may manage
their loans and extensions of credit without regard to any rights or interests that the Second Lien
Collateral Agent or any of the Noteholders have in the Common Collateral or otherwise, except as
otherwise provided in this Agreement. Neither the First Lien Collateral Agent nor any First Lien
Creditor shall have any duty to the Second Lien Collateral Agent or any of the Noteholders to act
or refrain from acting in a manner which allows, or results in, the occurrence or continuance of an
event of default or default under any agreements with CSC or any of its subsidiaries (including the
Noteholder Documents), regardless of any knowledge thereof which the First Lien Collateral Agent or
any First Lien Creditor may have or be charged with.

     SECTION 53.03. No Waiver of Lien Priorities.

     (a) To the fullest extent permitted under applicable law, no right of the First Lien
Creditors, the First Lien Collateral Agent or any of them to enforce any provision of this
Agreement shall at any time in any way be prejudiced or impaired by any act or failure to act on
the part of CSC or any of its subsidiaries or by any act or failure to act by any First Lien
Creditor, or by any noncompliance by any Person with the terms, provisions and covenants of this
Agreement, any of the Loan Documents or any of the Noteholder Documents, regardless of any
knowledge thereof which the First Lien Collateral Agent or the other First Lien Creditors, or any
of them, may have or be otherwise charged with;

J-16

 

     (b) Without in any way limiting the generality of the foregoing paragraph (but subject to the
rights of the Obligors under the Loan Documents), the First Lien Creditors and any of them may, to
the fullest extent permitted under applicable law, at any time and from time to time, without the
consent of, or notice to, the Second Lien Collateral Agent or any Noteholder, without incurring any
liabilities to the Second Lien Collateral Agent or any Noteholder and without impairing or
releasing the lien priorities and other benefits provided in this Agreement (even if any right of
subrogation or other right or remedy of the Second Lien Collateral Agent or any Noteholder is
affected, impaired or extinguished thereby) do any one or more of the following:

     (i) make loans and advances to any Obligor or issue, guaranty or obtain letters of
credit for the account of any Obligor or otherwise extend credit to any Obligor, in any
amount (subject to the limits set forth in the Indenture) and on any terms, whether pursuant
to a commitment or as a discretionary advance (subject to the limits set forth in the
Indenture) and whether or not any default or event of default or failure of condition is
then continuing;

     (ii) change the manner, place or terms of payment or change or extend the time of
payment of, or renew, exchange, amend, increase (subject to the limits set forth in the
Indenture) or alter the terms of, any of the Lender Claims or any Lien on any Lender
Collateral (including, without limitation, the Common Collateral) or guaranty thereof or any
liability of the Obligors, or any liability incurred directly or indirectly in respect
thereof (including any increase in (subject to the limits set forth in the Indenture) or
extension) of the Lender Claims, without any restriction as to the amount, tenor or terms of
any such increase (subject to the limits set forth in the Indenture) or extension or
otherwise amend, renew, exchange, extend, modify or supplement in any manner any Liens held
by the First Lien Creditors, the Lender Claims or any of the Loan Documents;

     (iii) subject, in the case of Pledged Collateral, to Section 5.4, sell, exchange,
release, surrender, realize upon, enforce or otherwise deal with in any manner and in any
order any part of the Lender Collateral or any liability of any Obligor to the First Lien
Creditors, or any liability incurred directly or indirectly in respect thereof;

     (iv) settle or compromise any Lender Claim or any other liability of any Obligor or any
security therefor or any liability incurred directly or indirectly in respect thereof and
apply any sums by whomsoever paid and however realized to any liability (including the
Lender Claims) in any manner or order;

     (v) exercise or delay in or refrain from exercising any right or remedy against any
Obligor or any security or any other Person, elect any remedy and otherwise deal freely with
the Obligors and the Lender Collateral and any security or any liability of any Obligor to
the First Lien Creditors or any liability incurred directly or indirectly in respect
thereof;

     (vi) release or discharge any Lender Claims or any guaranty thereof or any agreement or
obligation of any Obligor or any other person or entity with respect thereto;

J-17

 

     (vii) take or fail to take any Lender Lien or any other collateral security for any
Lender Claims or take or fail to take any action which may be necessary or appropriate to
ensure that any Lender Lien or any other Lien upon any property is duly enforceable or
perfected or entitled to priority as against any other Lien or to ensure that any proceeds
of any property subject to any Lien are applied to the payment of any Lender Claim or any
other obligation secured thereby; or

     (viii) release, discharge or permit the lapse of any or all Lender Liens or any other
Liens upon any property at any time securing any Lender Claims;

     (c) The Second Lien Collateral Agent, on behalf of itself and the Noteholders, also agrees, to
the fullest extent permitted under applicable law, that no First Lien Creditor shall have any
liability to the Second Lien Collateral Agent or any Noteholder, and the Second Lien Collateral
Agent, on behalf of itself and the Noteholders, to the fullest extent permitted under applicable
law, hereby waives any claim against any First Lien Creditor, arising out of any and all actions
which such First Lien Creditor may take or permit or omit to take with respect to: (i) the Loan
Documents, (ii) the collection of the Lender Claims or (iii) the foreclosure upon, or sale,
liquidation or other disposition of, the Lender Collateral. The Second Lien Collateral Agent, on
behalf of itself and the Noteholders, agrees that neither the First Lien Collateral Agent nor any
other First Lien Creditor shall have any duty to them, express or implied, fiduciary or otherwise,
in respect of the maintenance or preservation of the Lender Collateral, the Lender Claims or
otherwise; and

     (d) The Second Lien Collateral Agent, on behalf of itself and the Noteholders, agrees not to
assert and hereby waives, to the fullest extent permitted by law, any right to demand, request,
plead or otherwise assert, or otherwise claim the benefit of, any marshalling, appraisal, valuation
or other similar right that may otherwise be available under applicable law or any other similar
rights a junior secured creditor may have under applicable law.

     SECTION 53.04. Obligations Unconditional. All rights, interests, agreements and obligations
of the First Lien Collateral Agent and the other First Lien Creditors and the Second Lien
Collateral Agent and the Noteholders, respectively, hereunder shall remain in full force and effect
irrespective of:

     (a) any lack of validity or enforceability of any Loan Documents or any Noteholder
Documents or any setting aside or avoidance of any Lender Lien;

     (b) any change in the time, manner or place of payment of, or in any other terms of,
all or any of the Lender Claims or Noteholder Claims, or any amendment or waiver or other
modification, including any increase in the amount thereof, whether by course of conduct or
otherwise, of the terms of the Credit Agreement or any other Credit Document or of the terms
of the Indenture or any other Noteholder Document;

     (c) any exchange of any security interest in any Common Collateral or any other
collateral, or any amendment, waiver or other modification, whether in writing or by course
of conduct or otherwise, of all or any of the Lender Claims or Noteholder Claims or any
guarantee thereof;

J-18

 

     (d) the commencement of any Insolvency or Liquidation Proceeding in respect of CSC or
any of its subsidiaries; or

     (e) any other circumstances which otherwise might constitute a defense available to, or
a discharge of, any Obligor in respect of the Lender Claims, or of the Second Lien
Collateral Agent, any Noteholder, the First Lien Collateral Agent or any other First Lien
Creditor in respect of this Agreement.

     FOUR-ARTICLE FIFTY MISCELLANEOUS.

     SECTION 54.01. Conflicts. In the event of any conflict between the provisions of this
Agreement and the provisions of the Loan Documents or the Noteholder Documents, the provisions of
this Agreement shall govern.

     SECTION 54.02. Continuing Nature of This Agreement. This Agreement shall continue to be
effective until the Discharge of Lender Claims shall have occurred. This is a continuing agreement
of lien priority. The Second Lien Collateral Agent, on behalf of itself and the Noteholders,
hereby waives any right it may have under applicable law to revoke this Agreement or any of the
provisions of this Agreement. The terms of this Agreement shall survive, and shall continue in
full force and effect, in any Insolvency or Liquidation Proceeding with respect to CSC or any of
its subsidiaries.

     SECTION 54.03. Amendments; Waivers. No amendment, modification or waiver of any of the
provisions of this Agreement shall be deemed to be made unless the same shall be in writing signed
by the Second Lien Collateral Agent, the First Lien Collateral Agent and the Guarantor and each
waiver, if any, shall be a waiver only with respect to the specific instance involved and shall in
no way impair the rights of the parties making such waiver or the obligations of the other parties
to such party in any other respect or at any other time.

     SECTION 54.04. Information Concerning Financial Condition of CSC and Its Subsidiaries. The
First Lien Collateral Agent and the other First Lien Creditors, on the one hand, and the Second
Lien Collateral Agent and the Noteholders, on the other hand, shall each be responsible for keeping
themselves informed of (a) the financial condition of CSC and its subsidiaries, the Guarantor, and
all endorsers and/or guarantors of the Noteholder Claims or the Lender Claims and (b) all other
circumstances bearing upon the risk of nonpayment of the Noteholder Claims or the Lender Claims.
Neither the First Lien Collateral Agent nor any other First Lien Creditors shall have any duty to
advise the Second Lien Collateral Agent or any Noteholder of information known to it or them
regarding such condition or any such circumstances or otherwise. In the event the First Lien
Collateral Agent or any of the other First Lien Creditors, in its or their sole discretion,
undertakes at any time or from time to time to provide any such information to the Second Lien
Collateral Agent or any Noteholder, it or they shall be under no obligation (x) to provide any
additional information or to provide any such information on any subsequent occasion, (y) to
undertake any investigation or (z) to disclose any information which, pursuant to accepted or
reasonable commercial finance practices, such party wishes to maintain confidential.

J-19

 

     SECTION 54.05. Successor Second Lien Collateral Agent. Each successor Second Lien Collateral
Agent under the Indenture shall execute and deliver a counterpart of and become a party to this
Agreement, and no replacement or resignation of the Second Lien Collateral Agent shall be effective
until its successor shall have executed and delivered a counterpart of this Agreement.

     SECTION 54.06. Application of Payments. All payments received by the First Lien Creditors may
be applied, reversed and reapplied, in whole or in part, to such part of the Lender Claims as the
First Lien Creditors, in their sole discretion, deem appropriate. The Second Lien Collateral
Agent, on behalf of itself and the Noteholders, assents to any extension or postponement of the
time of payment of the Lender Claims or any part thereof and to any other indulgence with respect
thereto, to any substitution, exchange or release of any security which may at any time secure any
part of the Lender Claims and to the addition or release of any other Person primarily or
secondarily liable therefor.

     SECTION 54.07. Governing Law; Submission to Jurisdiction; Venue.

     (a) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED
IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK. ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR
OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK. BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, EACH OF THE GUARANTOR, THE FIRST LIEN COLLATERAL AGENT ON BEHALF OF ITSELF AND THE OTHER
FIRST LIEN CREDITORS AND THE SECOND LIEN COLLATERAL AGENT ON BEHALF OF ITSELF AND THE NOTEHOLDERS,
HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY OR INTERESTS IN PROPERTY,
GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH OF THE GUARANTOR,
THE FIRST LIEN COLLATERAL AGENT ON BEHALF OF ITSELF AND THE OTHER FIRST LIEN CREDITORS AND THE
SECOND LIEN COLLATERAL AGENT ON BEHALF OF ITSELF AND THE NOTEHOLDERS, FURTHER IRREVOCABLY CONSENTS
TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING
BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ANY PARTY TO
THIS AGREEMENT AT ITS ADDRESS SET FORTH BENEATH ITS SIGNATURE BELOW, SUCH SERVICE TO BECOME
EFFECTIVE 30 DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE FIRST LIEN
COLLATERAL AGENT UNDER THIS AGREEMENT OR ANY FIRST LIEN SECURED CREDITOR TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY
PARTY IN ANY OTHER JURISDICTION.

     (b) EACH OF THE GUARANTOR, THE FIRST LIEN COLLATERAL AGENT ON BEHALF OF ITSELF AND THE OTHER
FIRST LIEN CREDITORS AND THE SECOND LIEN COLLATERAL AGENT, ON BEHALF OF ITSELF AND THE NOTEHOLDERS,
HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HERE-

J-20

 

AFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT
OF OR IN CONNECTION WITH THIS AGREEMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND
HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH
ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

     SECTION 54.08. Waiver of Jury Trial. THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT,
OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF
SUCH PARTIES RELATING THERETO. EACH OF THE PARTIES HERETO ACKNOWLEDGES AND AGREES THAT IT HAS
RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH
OTHER LOAN DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR
THE EACH PARTY ENTERING INTO THIS AGREEMENT.

     SECTION 54.09. Notices. All notices to the Noteholders and the First Lien Creditors permitted
or required under this Agreement may be sent to the Second Lien Collateral Agent and the First Lien
Collateral Agent, respectively. Unless otherwise specifically provided herein, any notice or other
communication herein required or permitted to be given shall be in writing and may be personally
served, telecopied, electronically mailed or sent by courier service or U.S. mail and shall be
deemed to have been given when delivered in person or by courier service, upon receipt of a
telecopy or electronic mail or four (4) Business Days after deposit in the U.S. mail (registered or
certified, with postage prepaid and properly addressed). For the purposes hereof, the addresses of
the parties hereto shall be as set forth below each party’s name on the signature pages hereto, or,
as to each party, at such other address as may be designated by such party in a written notice to
all of the other parties.

     SECTION 54.10. Further Assurances. Each party hereto agrees that it shall take such further
action and shall execute and deliver such additional documents and instruments (in recordable form,
if requested) as the requesting party may reasonably request to effectuate the terms of and the
lien priorities contemplated by this Agreement.

     SECTION 54.11. Subrogation. The Second Lien Collateral Agent, on behalf of itself and the
Noteholders, hereby waives any rights of subrogation it may acquire as a result of any payment
hereunder until the Discharge of Lender Claims has occurred.

     SECTION 54.12. Binding on Successors and Assigns; No Third Party Beneficiaries. This
Agreement shall be binding upon and inure to the benefit of the First Lien Collateral Agent, the
other First Lien Creditors, the Second Lien Collateral Agent, the Noteholders and their respective
successors and assigns. No other Person shall have or be entitled to assert rights or benefits
hereunder. This Agreement shall be binding upon the Guarantor and its successors and assigns;
provided that the Guarantor or any successor or assign thereof
shall be entitled to en-

J-21

 

force any provision of this Agreement (other than any provision hereof expressly preserving
any right of the Guarantor under any Loan Document or Noteholder Document).

     SECTION 54.13. Specific Performance. Each of the First Lien Collateral Agent and the Second
Lien Collateral Agent may demand specific performance of this Agreement; provided that the Second
Lien Collateral Agent may not demand specific performance hereunder from any Obligor unless and
until the Discharge of Lender Claims has occurred. The Second Lien Collateral Agent, on behalf of
itself and the Noteholders, hereby irrevocably waives any defense based on the adequacy of a remedy
at law and any other defense which might be asserted to bar the remedy of specific performance in
any action which may be brought by the First Lien Collateral Agent.

     SECTION 54.14. Section Titles. The section titles contained in this Agreement are and shall
be without substantive meaning or content of any kind whatsoever and are not a part of this
Agreement.

     SECTION 54.15. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be an original and all of which shall together constitute one and the same document.
Delivery of an executed counterpart of a signature page to this Agreement by facsimile shall be
effective as delivery of a manually executed counterpart of this Agreement.

     SECTION 54.16. Authorization. By its signature, each Person executing this Agreement on
behalf of a party hereto represents and warrants to the other parties hereto that it is duly
authorized to execute this Agreement.

     SECTION 54.17. Effectiveness. This Agreement shall become effective when executed and
delivered by the parties listed below. This Agreement shall be effective both before and after the
commencement of any Insolvency or Liquidation Proceeding with respect to CSC or any of its
subsidiaries. All references to a Person or any of its subsidiaries shall include such Person or
any of its subsidiaries as debtor and debtor-in-possession and any receiver or trustee for such
Obligor (as the case may be) in any Insolvency or Liquidation Proceeding with respect to such
Person.

     SECTION 54.18. Provisions Solely to Define Relative Rights. The provisions of this Agreement
are and are intended solely for the purpose of defining the relative rights of the First Lien
Creditors on the one hand and the Noteholders on the other hand with respect to the Common
Collateral. None of CSC or any of its subsidiaries or any other creditor thereof shall have any
rights hereunder. Nothing in this Agreement is intended to or shall impair the obligations of the
Guarantor or any of its subsidiaries, which are absolute and unconditional, to pay the Obligations
and the Indenture as and when the same shall become due and payable in accordance with their terms.

     SECTION 54.19. Incorporation by Reference. In connection with its appointment and acting
hereunder, the Second Lien Collateral Agent shall be entitled to all rights, privileges, benefits,
protections, immunities and indemnities provided to it under the Indenture.

J-22

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.

	 	 	 	 	 
	 	First Lien Collateral Agent:

[          ]

      as First Lien Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 

	 	Address:
	 	 

J-23

 

	 	 	 	 	 
	 	Second Lien Collateral Agent:

[          ]

      as Second Lien Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 

	 	Address:
	 	 

J-24

 

	 	 	 	 	 
	 	COINMACH LAUNDRY CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 

	 	Address:
	 	 

J-25

 

	 	 	 	 	 
	 	ACKNOWLEDGED BY:

COINMACH CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	COINMACH SERVICE CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

J-26

 

EXHIBIT K

FORM OF POST-MERGER EVENT

PLEDGE AGREEMENT

               PLEDGE AGREEMENT (as amended, modified or supplemented from time to time, this
“Agreement”), dated as of ______, 20___, made by [NAME OF ENTITY], a[n] [JURISDICTION
OF INCORPORATION] corporation (the “Pledgor”), as successor to the merger of [Coinmach
Service Corp., a Delaware corporation, Coinmach Laundry Corporation, a Delaware corporation, and
Coinmach Corp., a Delaware corporation,] in favor of THE BANK OF NEW YORK (“BNY”), as
Collateral Agent (in such capacity and together with any successors in such capacity, the
“Collateral Agent”) for the benefit of itself, the Trustee (as defined below) and the
Holders (as defined in the Indenture defined below) from time to time of the Senior Secured Notes
(as defined below) (collectively, the “Secured Creditors”). Except as otherwise defined
herein, all capitalized terms used herein and defined in the Indenture, dated as of November 24,
2004 (as amended, modified or supplemented from time to time (the “Indenture”), among the
Pledgor, the subsidiary guarantors party thereto from time to time and BNY as trustee (the
“Trustee”) and as Collateral Agent shall be used herein as so defined.

R E C I T A L S :

               8. The Pledgor is the [successor to the] issuer of $132,566,664.68 aggregate principal amount
of 11% Senior Secured Notes due 2024 that were originally issued on November 24, 2004 pursuant to
the Indenture (together with all additional 11% Senior Secured Notes due 2024 from time to time
thereafter in accordance with the Indenture, the “Senior Secured Notes”).

               9. The Pledgor has received and will continue to receive substantial benefits from the
proceeds of the Senior Secured Notes and is required to grant to the Collateral Agent Liens on and
security interests in the Collateral owned by it to secure its Obligations (as defined below)
pursuant to Section 11.02(b) of the Indenture.

               10. The Pledgor [has previously granted] [is contemporaneously herewith granting] a Lien and
pledged all of its right, title and interest in and relating to the Capital Stock of each of its
direct Subsidiaries and Proceeds thereof (collectively, the “Shared Collateral”) in favor of
[Deutsche Bank Trust Company Americas (“DB Trust”)], as collateral agent (the “Credit
Agreement Collateral Agent”) under the Credit Agreement (as amended, modified or supplemented
from time to time, the “Credit Agreement”) dated as of [January 25, 2002], among,
inter alia, the Pledgor, the lenders party thereto from time to time in their
capacities as lenders thereunder, [DB Trust], as administrative agent and the Credit Agreement
Collateral Agent.

               11. The relative priority of the Liens on the Shared Collateral in favor of the Collateral
Agent and the Credit Agreement Collateral Agent are defined in that certain inter
creditor agreement (the “Intercreditor Agreement”) dated as of [the date hereof] (as
the same

K-1

 

may be amended, supplemented or otherwise modified from time to time) among the Pledgor,
the Collateral Agent and the Credit Agreement Collateral Agent.

               12. The Pledgor desires to enter into this Agreement in order to satisfy the requirements of
Section 11.02(b) of the Indenture and to secure the payment and performance of all the Obligations.

A G R E E M E N T :

               NOW, THEREFORE, in consideration of the above-described extensions of credit made, and that
may from time to time be made, to the Pledgor and other benefits accruing to the Pledgor, the
receipt and sufficiency of which are hereby acknowledged, the Pledgor hereby makes the following
representations and warranties to the Collateral Agent for the benefit of the Secured Creditors and
hereby covenants and agrees with the Collateral Agent for the benefit of the Secured Creditors as
follows:

               FIVE-ARTICLE FIFTY SECURITY FOR OBLIGATIONS. THIS AGREEMENT IS MADE BY THE PLEDGOR FOR THE
BENEFIT OF THE SECURED CREDITORS TO SECURE THE FULL AND PROMPT PAYMENT AND PERFORMANCE WHEN DUE
(WHETHER AT THE STATED MATURITY, BY ACCELERATION OR OTHERWISE IN ACCORDANCE WITH THE TERMS OF THE
INDENTURE) OF THE OBLIGATIONS, WHETHER OUTSTANDING ON THE DATE OF THIS AGREEMENT OR EXTENDED FROM
TIME TO TIME AFTER THE DATE OF THIS AGREEMENT.

               SIX-ARTICLE FIFTY DEFINITION OF STOCK, INTERESTS, OBLIGATIONS, TERMINATION DATE, SECURITIES,
ETC.; REPRESENTATIONS AND WARRANTIES. AS USED HEREIN,

          (1) the term “Stock” shall mean (x) with respect to each of its direct
Subsidiaries that are corporations incorporated under the laws of the United States or any
State or territory thereof (each, a “Domestic Corporation”), all of the issued and
outstanding shares of capital stock of whatever class at any time owned by the Pledgor of
each Domestic Corporation and (y) with respect to each of its direct Subsidiaries that are
corporations that do not constitute Domestic Corporations (each, a “Foreign
Corporation”), all of the issued and outstanding shares of capital stock of whatever
class at any time owned by the Pledgor of each Foreign Corporation, in each case described
in clauses (i)(x) and (i)(y) of this sentence, together with the certificates representing
such shares; provided that, except as provided in the last sentence of this Section
2, the Pledgor shall not be required to pledge hereunder more than 65% of the total combined
voting power of all classes of capital stock of any Foreign Corporation entitled to vote,

          (2) the term “Interests” shall mean (x) with respect to each of its direct
Subsidiaries that are limited liability companies, partnerships or other entities (other
than corporations) organized under the laws of the United States or any State or territory
thereof (each, a “Domestic Non-Corporate Entity”), all of the issued and out
standing membership interests, partnership interests or other interests of whatever
class at any time owned by the Pledgor of each Domestic Non-Corporate Entity and (y) with
respect to

K-2

 

each of its direct Subsidiaries that are limited liability companies,
partnerships or other entities (other than corporations) that do not constitute Domestic
Non-Corporate Entities (each, a “Foreign Non-Corporate Entity”), all of the issued
and outstanding membership interests, partnership interests or other interests of whatever
class at any time owned by the Pledgor of each Foreign Non-Corporate Entity, in each case
described in clauses (ii)(x) and (ii)(y) of this sentence, together with all rights,
privileges, authority and powers of the Pledgor in and to each such Domestic Non-Corporate
Entity or Foreign Non-Corporate Entity or under the membership, partnership or other
operative agreement of each such entity, and the certificates and agreements, if any,
representing such membership, partnership or other equity interests; provided that,
except as provided in the last sentence of this Section 2, the Pledgor shall not be required
to pledge hereunder more than 65% of the total combined voting power of all classes of
interests of any Foreign Non-Corporate Entity entitled to vote,

          (3) “Obligations” shall mean the collective reference to the unpaid principal of
and interest on the Senior Secured Notes and all other obligations and liabilities of the
Pledgor (including, without limitation, any increase in the aggregate principal amount of
the Senior Secured Notes, together with any interest accruing at the then applicable rate
provided in the Indenture or the Senior Secured Notes after the maturity of the Senior
Secured Notes and interest accruing at the then applicable rate provided in the Indenture
after the filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to the Pledgor, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) to the Collateral Agent
or any Secured Creditor, whether direct or indirect, absolute or contingent, due or to
become due, or now existing or hereafter incurred, which may arise under, out of, or in
connection with, the Indenture, the Senior Secured Notes, this Agreement, or any other
document made, delivered or given in connection with any of the foregoing, in each case
whether on account of principal, interest, reimbursement obligations, fees, indemnities,
costs, expenses or otherwise (including, without limitation, all fees and disbursements of
counsel that are required to be paid by the Pledgor pursuant to the terms of any of the
foregoing agreements).

          (4) “Termination Date” means the earliest to occur of the date on which (a) all
Obligations have been paid in full in cash; (b) the Company exercises its legal defeasance
option or covenant defeasance option described in Section 8.01 of the Indenture; and (c) the
satisfaction and discharge of the Indenture occurs in accordance with Section 8.02
thereof.  

               If and to the extent that the Collateral Agent receives or holds stock certificates
representing more than 65% of the total combined voting power of all classes of capital stock or
other interests of any Foreign Corporation or Foreign Non-Corporate Entity entitled to vote, the
Collateral Agent agrees to act as bailee and custodian for the benefit of the Pledgor with respect
to any portion of such capital stock or other interest representing more than 65% of the total
combined voting power of all classes of capital stock or other interest of any Foreign Corporation
or Foreign Non-Corporate Entity entitled to vote except as otherwise provided in the last
sentence of this Section 2. As used herein, the term “Securities” shall mean all of
the Stock and Interests.

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               The Pledgor represents and warrants, as to the stock of each of its direct Subsidiaries that
are corporations and interests in each of its direct Subsidiaries that are non-corporate entities,
that on the date hereof (a) the Stock consists of the number and type of shares of the stock of the
corporations as described in Part I of Schedule A hereto; (b) such Stock constitutes that
percentage of the applicable class of stock issued and outstanding capital stock of the issuing
corporation as is set forth in Part I of Schedule A hereto; (c) the Interests consist of the type
of interests of the non-corporate entities as described in Part II of Schedule A hereto; (d) such
Interests constitute that percentage of the issues interests of the issuing non-corporate entities
as described in Part II of Schedule A hereto; and (e) the Pledgor is the holder of record and sole
beneficial owner of the Stock and the Interest and there exist no options or preemptive rights in
respect of any of the Securities. If following a change in the relevant sections of the Code or
the regulations, rules, rulings, notices or other official pronouncements issued or promulgated
thereunder which would permit a pledge of 66-2/3% or more (or would be adjusted to permit a pledge
of less than 66-2/3%) of the total combined voting power of all classes of capital stock of any
Foreign Corporation or Foreign Non-Corporate Entity entitled to vote without causing the
undistributed earnings of such Foreign Corporation or Foreign Non-Corporate Entity as determined
for Federal income taxes to be treated as a deemed dividend to the Pledgor for Federal income tax
purposes and without causing any other material adverse tax consequences to the Pledgor or any of
its Subsidiaries or Affiliates, then the 65% limitation set forth in the provisions to clauses (i)
and (ii) of this Section 2 shall no longer be applicable (or shall be adjusted as appropriate) and
the Pledgor shall duly pledge and deliver to the Collateral Agent such of the Securities not
theretofore required to be pledged hereunder or the Collateral Agent shall return such Securities,
as applicable.

               SEVEN-ARTICLE FIFTY PLEDGE OF SECURITIES, ETC.

               SECTION 57.01. Pledge. To secure the payment and performance when due of all of the
Obligations and for the purposes set forth in Section 1, the Pledgor (i) hereby grants to the
Collateral Agent for the benefit of the Secured Creditors a continuing security interest in and to
all of the right, title and interests of the Pledgor in, to and under the Collateral (as
hereinafter defined), (ii) hereby pledges and deposits with the Collateral Agent the Securities
owned by the Pledgor on the date hereof, and, subject to Section 23, delivers to the Collateral
Agent certificates therefor, accompanied by undated stock powers duly executed in blank by the
Pledgor (and accompanied by any transfer tax stamps required in connection with the pledge of such
Securities) in the case of capital stock, or such other instruments of transfer as are reasonably
acceptable to the Collateral Agent and (iii) hereby collaterally assigns, transfers, hypothecates
and sets over to the Collateral Agent all of the Pledgor’s right, title and interest in and to such
Securities (and in and to the certificates evidencing such Securities and the other Collateral), to
be held by the Collateral Agent as collateral security for the Obligations, upon the terms and
conditions set forth in this Agreement.

               SECTION 57.02. Subsequently Acquired Securities. If the Pledgor shall acquire (by
purchase, stock dividend or otherwise) any additional Securities at any time or from time to time
after the date hereof, the Pledgor will promptly thereafter (and in any event
within five Business Days) pledge and deposit such Securities (or certificates representing
Securities) as security with the Collateral Agent and deliver to the Collateral Agent certificates
therefor, accompanied by undated stock powers duly executed in blank by the Pledgor (and
accompanied by

K-4

 

any transfer tax stamps required in connection with the pledge of such Securities)
in the case of capital stock, or such other instruments of transfer as are reasonably acceptable to
the Collateral Agent, and will promptly thereafter (and in any event within five Business Days)
deliver to the Collateral Agent a pledge amendment duly executed by a principal executive officer
of the Pledgor in substantially the form of Exhibit 1 hereto (each, a “Pledge
Amendment”) describing such Securities and certifying that the same have been duly pledged with
the Collateral Agent hereunder. Subject to the last sentence of Section 2, no Pledgor shall be
required at any time to pledge hereunder more than 65% of the total combined voting power of all
classes of capital stock or other interests of any Foreign Corporation or Foreign Non-Corporate
Entity entitled to vote.

               SECTION 57.03. Uncertificated Securities. Notwithstanding anything to the contrary
contained in Sections 3.1 and 3.2, if any Securities (whether now owned or hereafter acquired) are
uncertificated securities, the Pledgor shall promptly (and in any event within ten Business Days)
notify the Collateral Agent thereof, and shall promptly (and in any event within ten Business Days)
take all actions reasonably required to perfect the security interest of the Collateral Agent under
applicable law. The Pledgor further agrees to take such actions as are necessary or that the
Collateral Agent deems reasonably necessary or desirable to effect the foregoing (including,
without limitation, causing the issuer of such uncertificated Securities to execute and deliver to
the Collateral Agent an acknowledgment of the pledge of such Securities hereunder substantially in
the form of Exhibit 2 hereto) and to permit the Collateral Agent to exercise any of its
rights and remedies hereunder, and agrees to provide an opinion of counsel to the Collateral Agent
with respect to any such pledge of uncertificated Securities promptly upon the reasonable request
of the Collateral Agent.

               SECTION 57.04. Definitions of Pledged Stock; Pledged Securities and Collateral. As
used herein, “Collateral” shall mean all of the following property of the Pledgor, whether
now existing or owned or hereafter arising or acquired:

          (1) all Stock at any time pledged or required to be pledged hereunder (hereinafter
called the “Pledged Stock”);

          (2) all Interests at any time pledged or required to be pledged hereunder (hereinafter
called the “Pledged Interests”; together with all Pledged Stock are hereinafter
called the “Pledged Securities”);

          (3) all dividends, cash, options, warrants, rights, distributions, returns of capital
and other property, equity interests or proceeds, including as a result of a split,
revision, reclassification or other like change of the Pledged Securities, from time to time
received or otherwise distributed to the Pledgor in respect of or in exchange for any or all
of the Pledged Securities (collectively, “Distributions”);

          (4) without affecting the obligations of the Pledgor under any provision prohibiting
such action hereunder or under the Indenture, in the event of any consolidation or
merger in which any Person listed in Schedule A hereto is not the surviving
entity, all shares of each class of the capital stock of the successor corporation or
interests or certificates of the successor limited liability company or partnership or other
entity owned

K-5

 

by the Pledgor (unless such successor is the Pledgor itself) formed by or
resulting from such consolidation or merger; and

          (5) all Proceeds (as defined under the Uniform Commercial Code as in effect in any
relevant jurisdiction (the “UCC”) or under other relevant law, “Proceeds”) of any of
the foregoing, and in any event, including, without limitation, any and all (a) proceeds of
any insurance, indemnity, warranty or guarantee payable to the Collateral Agent or to the
Pledgor from time to time with respect to any of the Collateral, (b) payments (in any form
whatsoever) made or due and payable to the Pledgor from time to time in connection with any
requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the
Collateral by any Governmental Authority (or any person acting under color of a Governmental
Authority), (c) products of the Collateral and (d) any and all other amounts from time to
time paid or payable under or in connection with any of the Collateral, including any
securities and moneys received and at any time held by the Collateral Agent hereunder.

               EIGHT-ARTICLE FIFTY APPOINTMENT OF SUB-AGENTS; ETC. THE COLLATERAL AGENT SHALL HAVE THE RIGHT
TO APPOINT ONE OR MORE SUB-AGENTS, AT THE COST AND EXPENSE OF THE PLEDGOR FOR THE PURPOSE OF
RETAINING PHYSICAL POSSESSION OF THE PLEDGED SECURITIES, WHICH MAY BE HELD (IN THE REASONABLE
DISCRETION OF THE COLLATERAL AGENT) IN THE NAME OF THE PLEDGOR, ASSIGNED IN BLANK OR IN FAVOR OF
THE COLLATERAL AGENT OR ANY NOMINEE OR NOMINEES OF THE COLLATERAL AGENT OR A SUB-AGENT APPOINTED BY
THE COLLATERAL AGENT.

               NINE-ARTICLE FIFTY VOTING, ETC., WHILE NO EVENT OF DEFAULT. UNLESS AND UNTIL THERE SHALL HAVE
OCCURRED AND BE CONTINUING AN EVENT OF DEFAULT AND THE COLLATERAL AGENT HAS GIVEN WRITTEN NOTICE TO
THE PLEDGOR, THE PLEDGOR SHALL, TO THE EXTENT NOT PROHIBITED IN SUCH NOTICE, BE ENTITLED TO VOTE
ANY AND ALL PLEDGED SECURITIES OWNED BY IT, AND TO GIVE CONSENTS, WAIVERS OR RATIFICATIONS IN
RESPECT THEREOF, PROVIDED THAT NO VOTE SHALL BE CAST OR ANY CONSENT, WAIVER OR RATIFICATION
GIVEN OR ANY ACTION TAKEN WHICH WOULD VIOLATE OR RESULT IN BREACH OF ANY COVENANT CONTAINED IN THIS
AGREEMENT OR THE INDENTURE OR WHICH IS NOT PERMITTED UNDER THIS AGREEMENT OR THE INDENTURE AND
COULD REASONABLY BE EXPECTED TO HAVE THE EFFECT OF MATERIALLY IMPAIRING THE VALUE OF THE COLLATERAL
OR ANY MATERIAL PART THEREOF OR THE POSITION OR INTERESTS OF THE COLLATERAL AGENT OR ANY SECURED
CREDITOR. ALL SUCH RIGHTS OF THE PLEDGOR TO VOTE AND TO GIVE CONSENTS, WAIVERS AND RATIFICATIONS
SHALL CEASE IN CASE AN EVENT OF DEFAULT HAS OCCURRED AND IS CONTINUING AND THE COLLATERAL AGENT HAS
GIVEN WRITTEN NOTICE TO THE PLEDGOR PROHIBITING THE EXERCISE BY THE PLEDGOR OF ANY SUCH RIGHT, AND
SECTION 7 HEREOF SHALL BECOME APPLICABLE.

               ARTICLE SIXTY DIVIDENDS AND OTHER DISTRIBUTIONS. UNLESS AND UNTIL THERE SHALL HAVE OCCURRED
AND BE CONTINUING AN EVENT OF

K-6

 

DEFAULT AND THE COLLATERAL AGENT HAS GIVEN WRITTEN NOTICE TO THE
PLEDGOR PROHIBITING SUCH PAYMENT, ALL CASH DIVIDENDS AND DISTRIBUTIONS PAYABLE IN RESPECT OF THE
PLEDGED STOCK AND PLEDGED INTERESTS SHALL BE PAID TO THE PLEDGOR. IF THERE SHALL HAVE OCCURRED AND
BE CONTINUING AN EVENT OF DEFAULT, THE COLLATERAL AGENT SHALL BE PROVIDED WITH DIRECTLY, AND TO
RETAIN AS PART OF THE COLLATERAL:

          (a) all other or additional stock or securities or other interests (other than cash)
paid or distributed by way of dividend or otherwise, as the case may be, in respect of the
Pledged Securities;

          (b) all other or additional stock or other securities or other interests paid (other
than cash) or distributed in respect of the Pledged Securities by way of stock split,
spin-off, split-up, reclassification, combination of shares or similar rearrangement; and

          (c) all other or additional stock or other securities or other interests or property
(excluding cash) which may be paid in respect of the Collateral by reason of any
consolidation, merger, exchange of stock, conveyance of assets, liquidation or similar
corporate reorganization.

Nothing contained in this Section 6 shall limit or restrict in any way the Collateral Agent’s right
to receive proceeds of the Collateral in any form in accordance with Section 3 of this Agreement.
All dividends, distributions or other payments which are received by the Pledgor contrary to the
provisions of this Section 6 and Section 7 shall be received in trust for the benefit of the
Collateral Agent, shall be segregated from other property or funds of the Pledgor and shall be
forthwith paid or delivered over to the Collateral Agent as Collateral in the same form as so
received (with any necessary endorsement).

               ONE-ARTICLE SIXTY REMEDIES IN CASE OF EVENTS OF DEFAULT. IF THERE SHALL HAVE OCCURRED AND BE
CONTINUING AN EVENT OF DEFAULT AND THE COLLATERAL AGENT HAS GIVEN WRITTEN NOTICE TO THE PLEDGOR OF
ITS INTENT TO EXERCISE ALL OR ANY OF ITS RIGHTS UNDER THIS SECTION 7, THEN AND IN EVERY SUCH CASE,
THE COLLATERAL AGENT SHALL BE ENTITLED TO EXERCISE ALL OF THE RIGHTS, POWERS AND REMEDIES (WHETHER
VESTED IN IT BY THIS AGREEMENT, THE SENIOR SECURED NOTES OR THE INDENTURE, OR BY LAW) FOR THE
PROTECTION AND ENFORCEMENT OF ITS RIGHTS IN RESPECT OF THE COLLATERAL, AND THE COLLATERAL AGENT
SHALL BE ENTITLED TO EXERCISE ALL THE RIGHTS AND REMEDIES OF A SECURED PARTY UNDER THE UCC AND ALSO
SHALL BE ENTITLED, WITHOUT LIMITATION, TO EXERCISE THE FOLLOWING RIGHTS, WHICH THE COLLATERAL AGENT
AGREES TO EXERCISE IN A COMMERCIALLY REASONABLE MANNER:

          (a) to receive all amounts payable in respect of the Collateral otherwise payable under
Section 6 to the Pledgor;

          (b) to transfer all or any part of the Collateral into the Collateral Agent’s name or
the name of its nominee or nominees;

K-7

 

          (c) to vote all or any part of the Pledged Stock and/or Pledged Interests (whether or
not transferred into the name of the Collateral Agent) and give all consents, waivers and
ratifications in respect of the Collateral and otherwise act with respect thereto in a
commercially reasonable manner as though it were the outright owner thereof (the Pledgor
hereby irrevocably constituting and appointing the Collateral Agent the proxy and
attorney-in-fact of the Pledgor, with full power of substitution to do so upon the
occurrence and during the continuance of an Event of Default provided the Collateral Agent
has delivered written notice to the Pledgor of its intent to exercise all or any of its
rights under this clause (c))

          (d) to sell, assign and deliver, or grant options to purchase, all or any part of the
Collateral, or any interest therein, at any public or private sale, without demand of
performance, advertisement or notice of intention to sell or of the time or place of sale or
adjournment thereof or to redeem or otherwise (all of which are hereby waived by the
Pledgor), for cash, on credit or for other property, for immediate or future delivery
without any assumption of credit risk, and for such price or prices and on such terms as the
Collateral Agent may determine in a commercially reasonable manner, provided that at
least 10 days’ written notice of the time and place of any such sale shall be given to the
Pledgor. The Collateral Agent shall not be obligated to make any such sale of Collateral
regardless of whether any such notice of sale has theretofore been given. The Pledgor
hereby waives and releases to the fullest extent permitted by law any right or equity of
redemption with respect to the Collateral, whether before or after sale hereunder, other
than the Pledgor’s right to receive any excess proceeds or Collateral remaining after the
occurrence of the Termination Date. At any such sale, unless prohibited by applicable law,
the Collateral Agent on behalf of the Secured Creditors may bid for and purchase all or any
part of the Collateral so sold free from any such right or equity of redemption. Neither
the Collateral Agent nor any Secured Creditor shall be liable for failure to collect (except
in such cases where the Collateral Agent bids for and purchases all or part of the
Collateral) or realize upon any or all of the Collateral or for any delay in so doing nor
shall any of them be under any obligation to take any action whatsoever with regard thereto.

               TWO-ARTICLE SIXTY REMEDIES, ETC., CUMULATIVE. EACH AND EVERY RIGHT, POWER AND REMEDY OF THE
COLLATERAL AGENT PROVIDED FOR IN THIS AGREEMENT, THE SENIOR SECURED NOTES OR THE INDENTURE NOW OR
HEREAFTER EXISTING AT LAW OR IN EQUITY OR BY STATUTE, SHALL BE CUMULATIVE AND CONCURRENT AND SHALL
BE IN ADDITION TO EVERY OTHER SUCH RIGHT, POWER OR REMEDY. THE EXERCISE OR BEGINNING OF THE
EXERCISE BY THE COLLATERAL AGENT OR ANY SECURED CREDITOR OF ANY ONE OR MORE OF THE RIGHTS, POWERS
OR REMEDIES PROVIDED FOR IN THIS AGREEMENT, THE SENIOR SECURED NOTES OR THE INDENTURE OR NOW OR
HEREAFTER EXISTING AT LAW OR IN EQUITY OR BY STATUTE SHALL NOT PRECLUDE THE SIMULTANEOUS OR LATER
EXERCISE BY THE COLLATERAL AGENT OR ANY SECURED CREDITOR OF ALL SUCH OTHER RIGHTS, POWERS OR REME
DIES, AND NO FAILURE OR DELAY ON THE PART OF THE COLLATERAL AGENT OR ANY SECURED CREDITOR TO
EXERCISE ANY SUCH RIGHT, POWER OR REMEDY SHALL OPERATE AS A WAIVER THEREOF EXCEPT AS REQUIRED BY
APPLICABLE

K-8

 

LAW. UNLESS OTHERWISE REQUIRED BY THE INDENTURE, NO NOTICE TO OR DEMAND ON THE PLEDGOR
IN ANY CASE SHALL ENTITLE IT TO ANY OTHER OR FURTHER NOTICE OR DEMAND IN SIMILAR OR OTHER
CIRCUMSTANCES OR CONSTITUTE A WAIVER OF ANY OF THE RIGHTS OF THE COLLATERAL AGENT OR ANY SECURED
CREDITOR TO ANY OTHER OR FURTHER ACTION IN ANY CIRCUMSTANCES WITHOUT NOTICE OR DEMAND.

               THREE-ARTICLE SIXTY APPLICATION OF PROCEEDS.

          (a) All moneys collected by the Collateral Agent upon any sale or other disposition of the
Collateral, together with all other moneys received by the Collateral Agent hereunder, shall be
applied in the order set forth in Section 6.10 of the Indenture. Any balance of such Proceeds
remaining after the occurrence of the Termination Date, shall be paid over to the Pledgor or to
whomsoever may be lawfully entitled to receive the same.

          (b) It is understood and agreed that the Pledgor shall remain liable to the extent of any
deficiency between the amount of the proceeds of the Collateral hereunder and the aggregate amount
of the Obligations, except to the extent that such proceeds are not applied by the Collateral Agent
in accordance with this Agreement and the Indenture.

               FOUR-ARTICLE SIXTY PURCHASERS OF COLLATERAL. UPON ANY SALE OF THE COLLATERAL BY THE
COLLATERAL AGENT HEREUNDER (WHETHER BY VIRTUE OF THE POWER OF SALE HEREIN GRANTED, PURSUANT TO
JUDICIAL PROCESS OR OTHERWISE), THE RECEIPT OF THE COLLATERAL AGENT OR THE OFFICER MAKING THE SALE
SHALL BE A SUFFICIENT DISCHARGE TO THE PURCHASER OR PURCHASERS OF THE COLLATERAL SO SOLD, AND SUCH
PURCHASER OR PURCHASERS SHALL NOT BE OBLIGATED TO SEE TO THE APPLICATION OF ANY PART OF THE
PURCHASE MONEY PAID OVER TO THE COLLATERAL AGENT OR SUCH OFFICER OR BE ANSWERABLE IN ANY WAY FOR
THE MISAPPLICATION OR NONAPPLICATION THEREOF.

               FIVE-ARTICLE SIXTY INDEMNITY. THE PLEDGOR AGREES TO INDEMNIFY AND HOLD HARMLESS THE
COLLATERAL AGENT AND EACH SECURED CREDITOR AND THEIR RESPECTIVE SUCCESSORS, ASSIGNS, EMPLOYEES,
AGENTS AND SERVANTS (EACH, AN “INDEMNITEE”; COLLECTIVELY, THE “INDEMNITEES”) FROM AND
AGAINST ANY AND ALL CLAIMS, DEMANDS, LOSSES, JUDGMENTS AND LIABILITIES (INCLUDING LIABILITIES FOR
PENALTIES) OF WHATSOEVER KIND OR NATURE, AND TO REIMBURSE EACH INDEMNITEE FOR ALL COSTS AND
EXPENSES, INCLUDING REASONABLE ATTORNEYS’ FEES, GROWING OUT OF OR RESULTING FROM THIS AGREEMENT OR
THE EXERCISE BY ANY INDEMNITEE OF ANY RIGHT OR REMEDY GRANTED TO IT HEREUNDER OR UNDER THE
INDENTURE (BUT EXCLUDING ANY CLAIMS, DEMANDS, LOSSES, JUDGMENTS AND LIABILITIES OR EXPENSES TO THE
EXTENT FINALLY JUDICIALLY DETERMINED TO HAVE BEEN INCURRED BY REASON OF GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT OF SUCH INDEMNITEE). IF AND TO THE EXTENT THAT THE OBLIGATIONS OF THE
PLEDGOR UNDER THIS SECTION 11 ARE UNENFORCEABLE FOR ANY REASON, THE PLEDGOR HEREBY AGREES TO MAKE
THE MAXIMUM CONTRIBUTION

K-9

 

TO THE PAYMENT AND SATISFACTION OF SUCH OBLIGATIONS THAT IS PERMISSIBLE
UNDER APPLICABLE LAW.

               SIX-ARTICLE SIXTY FURTHER ASSURANCES; POWER-OF-ATTORNEY. 6. THE PLEDGOR AGREES THAT IT WILL
JOIN WITH THE COLLATERAL AGENT IN EXECUTING AND, AT ITS OWN EXPENSE, FILE AND REFILE UNDER THE UCC
OR OTHER APPLICABLE LAW SUCH FINANCING STATEMENTS, CONTINUATION STATEMENTS AND OTHER DOCUMENTS IN
SUCH OFFICES AS ARE NECESSARY OR AS THE COLLATERAL AGENT MAY DEEM REASONABLY NECESSARY AND WHEREVER
REQUIRED BY LAW IN ORDER TO PERFECT AND PRESERVE THE COLLATERAL AGENT’S SECURITY INTEREST IN THE
COLLATERAL AND HEREBY AUTHORIZES THE COLLATERAL AGENT TO FILE FINANCING STATEMENTS AND AMENDMENTS
THERETO RELATIVE TO ALL OR ANY PART OF THE COLLATERAL WITHOUT THE SIGNATURE OF THE PLEDGOR, AND
AGREES TO DO SUCH FURTHER ACTS AND THINGS AND TO EXECUTE AND DELIVER TO THE COLLATERAL AGENT SUCH
ADDITIONAL CONVEYANCES, ASSIGNMENTS, AGREEMENTS AND INSTRUMENTS AS ARE NECESSARY OR AS THE
COLLATERAL AGENT MAY REASONABLY REQUIRE OR DEEM NECESSARY TO CARRY INTO EFFECT THE PURPOSES OF THIS
AGREEMENT OR TO FURTHER ASSURE AND CONFIRM UNTO THE COLLATERAL AGENT ITS RIGHTS, POWERS AND
REMEDIES HEREUNDER.

               10. The Pledgor hereby appoints the Collateral Agent the Pledgor’s attorney-in-fact, with full
authority in the place and stead of the Pledgor and in the name of the Pledgor or otherwise, from
time to time after the occurrence and during the continuance of an Event of Default and provided
that the Collateral Agent shall have delivered notice to the Pledgor of its intent to exercise all
or any of its rights under this clause (b), to take any action and to execute any instrument
necessary or which the Collateral Agent may reasonably deem necessary or advisable to accomplish
the purposes of this Agreement.

               SEVEN-ARTICLE SIXTY THE PLEDGEE AS AGENT. THE COLLATERAL AGENT WILL HOLD IN ACCORDANCE WITH
THIS AGREEMENT ALL ITEMS OF THE COLLATERAL AT ANY TIME RECEIVED UNDER THIS AGREEMENT. IT IS
EXPRESSLY UNDERSTOOD AND AGREED BY THE PARTIES HERETO AND EACH SECURED CREDITOR, BY ACCEPTING THE
BENEFITS OF THIS AGREEMENT, EACH SUCH PERSON ACKNOWLEDGES AND AGREES THAT THE OBLIGATIONS OF THE
COLLATERAL AGENT AS HOLDER OF THE COLLATERAL AND INTERESTS THEREIN AND WITH RESPECT TO THE
DISPOSITION THEREOF, AND OTHERWISE UNDER THIS AGREEMENT, ARE ONLY THOSE EXPRESSLY SET FORTH IN THIS
AGREEMENT. THE COLLATERAL AGENT SHALL ACT HEREUNDER ON THE TERMS AND CONDITIONS SET FORTH HEREIN
AND IN ARTICLES SEVEN AND ELEVEN OF THE INDENTURE.

               EIGHT-ARTICLE SIXTY TRANSFER BY THE PLEDGOR. NO PLEDGOR WILL SELL OR OTHERWISE DISPOSE OF,
GRANT ANY OPTION WITH RESPECT TO,
OR MORTGAGE, PLEDGE OR OTHERWISE ENCUMBER ANY OF THE COLLATERAL OR ANY INTEREST THEREIN
(EXCEPT AS MAY BE PERMITTED IN ACCORDANCE WITH THE TERMS OF THE INDENTURE).

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               NINE-ARTICLE SIXTY REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGOR. 7. THE PLEDGOR
REPRESENTS AND WARRANTS THAT AS OF THE DATE HEREOF (I) IT IS, OR AT THE TIME WHEN PLEDGED HEREUNDER
WILL BE, THE LEGAL, RECORD AND BENEFICIAL OWNER OF, AND HAS (OR WILL HAVE) GOOD TITLE TO, ALL
COLLATERAL PLEDGED BY IT HEREUNDER, SUBJECT TO NO LIEN (EXCEPT THE LIEN CREATED BY THIS AGREEMENT
AND EXCEPT PERMITTED LIENS); (II) IT HAS FULL CORPORATE POWER, AUTHORITY AND LEGAL RIGHT TO PLEDGE
ALL THE COLLATERAL PURSUANT TO THIS AGREEMENT; (III) THIS AGREEMENT HAS BEEN DULY AUTHORIZED,
EXECUTED AND DELIVERED BY THE PLEDGOR AND CONSTITUTES A LEGAL, VALID AND BINDING OBLIGATION OF THE
PLEDGOR ENFORCEABLE IN ACCORDANCE WITH ITS TERMS, EXCEPT TO THE EXTENT THAT THE ENFORCEABILITY
HEREOF MAY BE LIMITED BY APPLICABLE BANKRUPTCY, INSOLVENCY, FRAUDULENT CONVEYANCE, REORGANIZATION,
MORATORIUM OR OTHER SIMILAR LAWS GENERALLY AFFECTING CREDITORS’ RIGHTS AND BY EQUITABLE PRINCIPLES
(REGARDLESS OF WHETHER ENFORCEMENT IS SOUGHT IN EQUITY OR AT LAW); (IV) EXCEPT TO THE EXTENT
ALREADY OBTAINED OR MADE, NO CONSENT OF ANY OTHER PARTY (INCLUDING, WITHOUT LIMITATION, ANY
STOCKHOLDER OR CREDITOR OF THE PLEDGOR OR ANY OF ITS SUBSIDIARIES) AND NO CONSENT, LICENSE, PERMIT,
APPROVAL OR AUTHORIZATION OF, EXEMPTION BY, NOTICE OR REPORT TO, OR REGISTRATION, FILING OR
DECLARATION WITH, ANY GOVERNMENTAL AUTHORITY IS REQUIRED TO BE OBTAINED BY THE PLEDGOR IN
CONNECTION WITH (W) THE EXECUTION, DELIVERY OR PERFORMANCE OF THIS AGREEMENT, (X) THE VALIDITY OR
ENFORCEABILITY OF THIS AGREEMENT, (Y) THE PERFECTION OR ENFORCEABILITY OF THE COLLATERAL AGENT’S
SECURITY INTEREST IN THE COLLATERAL OR (Z) EXCEPT FOR COMPLIANCE WITH OR AS MAY BE REQUIRED BY
APPLICABLE SECURITIES LAWS, THE EXERCISE BY THE COLLATERAL AGENT OF ANY OF ITS RIGHTS OR REMEDIES
PROVIDED HEREIN; (V) THE EXECUTION, DELIVERY AND PERFORMANCE OF THIS AGREEMENT WILL NOT VIOLATE ANY
PROVISION OF ANY APPLICABLE LAW OR REGULATION OR OF ANY ORDER, JUDGMENT, WRIT, AWARD OR DECREE OF
ANY COURT, ARBITRATOR OR GOVERNMENTAL AUTHORITY, DOMESTIC OR FOREIGN, APPLICABLE TO THE PLEDGOR, OR
OF THE CERTIFICATE OF INCORPORATION OR BY-LAWS OF THE PLEDGOR OR OF ANY SECURITIES ISSUED BY THE
PLEDGOR OR ANY OF ITS SUBSIDIARIES, OR OF ANY MATERIAL MORTGAGE, INDENTURE, LEASE, LOAN AGREEMENT,
CREDIT AGREEMENT OR OTHER CONTRACT, AGREEMENT OR INSTRUMENT OR UNDERTAKING TO WHICH THE PLEDGOR OR
ANY OF ITS SUBSIDIARIES IS A PARTY OR WHICH PURPORTS TO BE BINDING UPON THE PLEDGOR OR ANY OF ITS
SUBSIDIARIES OR UPON ANY OF THEIR RESPECTIVE MATERIAL ASSETS AND WILL NOT RESULT IN THE CREATION OR
IMPOSITION OF (OR THE OBLIGATION TO CREATE OR IMPOSE) ANY LIEN OR ENCUMBRANCE ON ANY OF THE ASSETS
OF THE PLEDGOR OR ANY OF ITS SUBSIDIARIES EXCEPT AS CONTEMPLATED BY THIS AGREEMENT; (VI) ALL THE
SHARES OF THE PLEDGED STOCK AND PLEDGED INTERESTS HAVE BEEN DULY AND VALIDLY ISSUED, ARE FULLY PAID AND
NON-ASSESSABLE (IN THE CASE OF PLEDGED STOCK) AND ARE SUBJECT TO NO OPTIONS TO PURCHASE OR SIMILAR
RIGHTS; AND (VII) THE

K-11

 

PLEDGE, COLLATERAL ASSIGNMENT AND, IN THE CASE OF CERTIFICATED SECURITIES
(OTHER THAN THE SHARED COLLATERAL FOR SO LONG AS THE INTERCREDITOR AGREEMENT REMAINS IN FULL FORCE
AND EFFECT), DELIVERY TO THE COLLATERAL AGENT OF THE SECURITIES OR, IN THE CASE OF UNCERTIFICATED
SECURITIES AND THE SHARED COLLATERAL, THE FILING OF A FINANCING STATEMENT NAMING THE PLEDGOR, AS
DEBTOR, AND THE COLLATERAL AGENT, AS SECURED PARTY, IN EACH CASE PURSUANT TO THIS AGREEMENT CREATES
A VALID AND PERFECTED LIEN ON THE COLLATERAL, SUBJECT TO NO OTHER LIEN OR TO ANY AGREEMENT
PURPORTING TO GRANT TO ANY THIRD PARTY A LIEN ON THE PROPERTY OR ASSETS OF THE PLEDGOR WHICH WOULD
INCLUDE THE COLLATERAL, EXCEPT PERMITTED LIENS. THE PLEDGOR COVENANTS AND AGREES THAT IT WILL TAKE
COMMERCIALLY REASONABLE STEPS TO DEFEND THE COLLATERAL AGENT’S RIGHT, TITLE AND SECURITY INTEREST
IN AND TO THE COLLATERAL AGAINST THE CLAIMS AND DEMANDS OF ALL PERSONS WHOMSOEVER; AND THE PLEDGOR
COVENANTS AND AGREES THAT IT WILL HAVE LIKE TITLE TO AND RIGHT TO PLEDGE ANY OTHER PROPERTY AT ANY
TIME HEREAFTER PLEDGED TO THE COLLATERAL AGENT AS COLLATERAL HEREUNDER AND WILL LIKEWISE TAKE
COMMERCIALLY REASONABLE STEPS TO DEFEND THE RIGHT THERETO AND SECURITY INTEREST THEREIN OF THE
COLLATERAL AGENT AND THE SECURED CREDITORS.

               11. The Pledgor further represents, warrants and covenants that the exact legal name, type of
organization and jurisdiction of organization (together with the organizational identification
number, if any, issued by such jurisdiction to the Pledgor) of the Pledgor is set forth in
Schedule B hereto. The Pledgor shall not change its name, “reincorporate” or “reorganize”
or otherwise cause the Collateral to be transferred to a Person incorporated or organized in
another state except to the extent (x) permitted pursuant to the provisions of the Indenture, (y)
it shall have given to Collateral Agent not less than 10 days’ prior written notice (in the form of
an officers’ certificate) of its intention so to do clearly describing such transaction and
providing such other information in connection therewith as Collateral Agent may reasonably request
and (z) with respect to such transaction, the Pledgor shall have taken all action reasonably
satisfactory to Collateral Agent to maintain the perfection and priority of the security interest
of Collateral Agent for the benefit of the Secured Parties in the Collateral intended to be granted
hereby.

               ARTICLE SEVENTY REGISTRATION, ETC. IF AT ANY TIME WHEN THE COLLATERAL AGENT SHALL DETERMINE
TO EXERCISE ITS RIGHT TO SELL ALL OR ANY PART OF THE PLEDGED SECURITIES PURSUANT TO SECTION 7, AND
SUCH PLEDGED SECURITIES OR THE PART THEREOF TO BE SOLD SHALL NOT, FOR ANY REASON WHATSOEVER, BE
EFFECTIVELY REGISTERED UNDER THE SECURITIES ACT OF 1933, AS THEN IN EFFECT, THE COLLATERAL AGENT
MAY BUT WITHOUT ANY OBLIGATION, IN ITS SOLE AND ABSOLUTE DISCRETION, SELL SUCH PLEDGED SECURITIES
OR PART THEREOF BY PRIVATE SALE IN SUCH MANNER AND UNDER SUCH CIRCUMSTANCES AS THE COLLATERAL AGENT
MAY DEEM REASONABLY NECESSARY OR ADVISABLE IN ORDER THAT SUCH SALE MAY LEGALLY BE EFFECTED WITHOUT SUCH
REGISTRATION. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, IN ANY SUCH EVENT THE COLLATERAL
AGENT, IN ITS COMMERCIALLY REASONABLE DISCRETION, (I) MAY PROCEED TO

K-12

 

MAKE SUCH PRIVATE SALE
NOTWITHSTANDING THAT A REGISTRATION STATEMENT FOR THE PURPOSE OF REGISTERING SUCH PLEDGED
SECURITIES OR PART THEREOF SHALL HAVE BEEN FILED UNDER SUCH SECURITIES ACT, (II) MAY APPROACH AND
NEGOTIATE WITH A SINGLE POSSIBLE PURCHASER TO EFFECT SUCH SALE AND (III) MAY RESTRICT SUCH SALE TO
A PURCHASER WHO WILL REPRESENT AND AGREE THAT SUCH PURCHASER IS PURCHASING FOR ITS OWN ACCOUNT, FOR
INVESTMENT, AND NOT WITH A VIEW TO THE DISTRIBUTION OR SALE OF SUCH PLEDGED SECURITIES OR PART
THEREOF. IN THE EVENT OF ANY SUCH SALE, THE COLLATERAL AGENT SHALL INCUR NO RESPONSIBILITY OR
LIABILITY FOR SELLING ALL OR ANY PART OF THE PLEDGED SECURITIES AT A PRICE WHICH THE COLLATERAL
AGENT, IN ITS COMMERCIALLY REASONABLE DISCRETION, IN GOOD FAITH DEEMS REASONABLE UNDER THE
CIRCUMSTANCES, NOTWITHSTANDING THE POSSIBILITY THAT A SUBSTANTIALLY HIGHER PRICE MIGHT BE REALIZED
IF THE SALE WERE DEFERRED UNTIL AFTER REGISTRATION AS AFORESAID.

               ONE-ARTICLE SEVENTY TERMINATION; RELEASE. 8. ON THE TERMINATION DATE, THIS AGREEMENT AND THE
SECURITY INTEREST CREATED HEREBY SHALL TERMINATE, AND THE COLLATERAL AGENT SHALL, AT THE REQUEST
AND EXPENSE OF THE PLEDGOR, EXECUTE AND DELIVER TO THE PLEDGOR AS PROMPTLY THEREAFTER AS REASONABLY
PRACTICABLE A PROPER INSTRUMENT OR INSTRUMENTS PROVIDED TO IT ACKNOWLEDGING THE SATISFACTION AND
TERMINATION OF THIS AGREEMENT, AND WILL DULY ASSIGN, TRANSFER AND DELIVER TO THE PLEDGOR (WITHOUT
RECOURSE AND WITHOUT ANY REPRESENTATION OR WARRANTY OTHER THAN A REPRESENTATION THAT THE COLLATERAL
AGENT HAS NOT GRANTED ANY LIEN ON OR SECURITY INTEREST IN THE COLLATERAL) SUCH OF THE COLLATERAL AS
MAY BE IN THE POSSESSION OF THE COLLATERAL AGENT OR ANY OF ITS SUB-AGENTS AND HAS NOT THERETOFORE
BEEN SOLD OR OTHERWISE APPLIED OR RELEASED PURSUANT TO THIS AGREEMENT, TOGETHER WITH ANY PROCEEDS
OF COLLATERAL AT THE TIME HELD BY THE COLLATERAL AGENT OR ANY OF ITS SUB-AGENTS HEREUNDER.

               12. In the event that any part of the Collateral is sold in connection with a sale permitted
by Section 4.16 of the Indenture or released in accordance with Section 11.05 of the Indenture and
the proceeds of such sale or sales or from such release are applied in accordance with, and to the
extent required by, the Indenture, to the extent required to be so applied, the Collateral Agent,
at the request and expense of the Pledgor, will duly assign, transfer and deliver to the Pledgor
(without recourse and without any representation or warranty) such of the Collateral as is then
being (or has been) so sold or released and as may be in the possession of the Collateral Agent or
any of its sub-agents and has not theretofore been released pursuant to this Agreement.

               13. At any time that the Pledgor desires that Collateral be released as provided in the
foregoing subsection (a) or (b), it shall deliver to the Collateral Agent a certificate signed by
its chief financial officer stating that the release of the respective Collateral is permitted
pursuant to such subsection (a) or (b).

K-13

 

               14. The Collateral Agent shall have no liability whatsoever to any Secured Creditor as the
result of any release of Collateral by it in accordance with this Section 17.

               TWO-ARTICLE SEVENTY NOTICES, ETC. ALL NOTICES AND COMMUNICATIONS HEREUNDER SHALL BE
TELECOPIED OR DELIVERED BY MESSENGER OR OVERNIGHT COURIER SERVICE AND ALL SUCH NOTICES AND
COMMUNICATIONS SHALL, WHEN MAILED, TELEGRAPHED, TELEXED, TELECOPIED, OR CABLED OR SENT BY OVERNIGHT
COURIER, BE EFFECTIVE WHEN DELIVERED TO THE TELEGRAPH COMPANY, CABLE COMPANY OR OVERNIGHT COURIER,
AS THE CASE MAY BE, OR SENT BY TELEX OR TELECOPIER AND WHEN MAILED SHALL BE EFFECTIVE THREE
BUSINESS DAYS FOLLOWING DEPOSIT IN THE MAIL WITH PROPER POSTAGE, EXCEPT THAT NOTICES AND
COMMUNICATIONS TO THE COLLATERAL AGENT SHALL NOT BE EFFECTIVE UNTIL RECEIVED BY THE COLLATERAL
AGENT. ALL NOTICES AND OTHER COMMUNICATIONS SHALL BE IN WRITING AND ADDRESSED AS FOLLOWS:

	 	(a)  	if to the Pledgor, at:	 

	 	 	 	 
	 	 	 	 
	 
	 	   	with a copy to:	 
	 
	 	 	 	 
	 	 	 	 
	 
	 	   	with a copy to:	 
	 
	 	   	 	 

	 	(b)  	if to the Collateral Agent, at:	 

or at such other address as shall have been furnished in writing by any Person described above to
and received by the party required to give notice hereunder.

K-14

 

               THREE-ARTICLE SEVENTY WAIVER; AMENDMENT. NONE OF THE TERMS AND CONDITIONS OF THIS AGREEMENT
MAY BE CHANGED, WAIVED, MODIFIED OR VARIED IN ANY MANNER WHATSOEVER EXCEPT IN ACCORDANCE WITH
ARTICLE NINE OF THE INDENTURE.

               FOUR-ARTICLE SEVENTY MISCELLANEOUS. THIS AGREEMENT SHALL BE BINDING UPON THE PARTIES HERETO
AND THEIR RESPECTIVE SUCCESSORS AND ASSIGNS AND SHALL INURE TO THE BENEFIT OF AND BE ENFORCEABLE BY
EACH OF THE PARTIES HERETO AND ITS SUCCESSORS AND ASSIGNS. THIS AGREEMENT SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK. THE HEADINGS IN THIS
AGREEMENT ARE FOR PURPOSES OF REFERENCE ONLY AND SHALL NOT LIMIT OR DEFINE THE MEANING HEREOF.
THIS AGREEMENT MAY BE EXECUTED IN ANY NUMBER OF COUNTERPARTS, EACH OF WHICH SHALL BE AN ORIGINAL,
BUT ALL OF WHICH SHALL CONSTITUTE ONE INSTRUMENT. IN THE EVENT THAT ANY PROVISION OF THIS
AGREEMENT SHALL PROVE TO BE INVALID OR UNENFORCEABLE, SUCH PROVISION SHALL BE DEEMED TO BE
SEVERABLE FROM THE OTHER PROVISIONS OF THIS AGREEMENT, WHICH SHALL REMAIN BINDING ON ALL PARTIES
HERETO.

               FIVE-ARTICLE SEVENTY RECOURSE. THIS AGREEMENT IS MADE WITH FULL RECOURSE TO THE PLEDGOR AND
PURSUANT TO AND UPON ALL THE REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS ON THE PART OF
THE PLEDGOR CONTAINED HEREIN OR IN THE INDENTURE, AND OTHERWISE IN WRITING IN CONNECTION HEREWITH
OR THEREWITH.

               SIX-ARTICLE SEVENTY THE COLLATERAL AGENT. 9. The Collateral Agent will hold in accordance
with this Agreement all items of the Collateral at any time received under this Agreement. It is
expressly understood and agreed by the parties hereto and each Secured Creditor, by accepting the
benefits of this Agreement acknowledges and agrees that the obligations of the Collateral Agent as
holder of the Collateral and interests therein and with respect to the disposition thereof, and
otherwise under this Agreement, are only those expressly set forth in this Agreement. In
connection with its appointment and acting hereunder, the Collateral Agent shall be entitled to all
rights, privileges, benefits, protections, immunities and indemnities provided to it under the
Indenture.

               15. Beyond the exercise of reasonable care in the custody thereof, the Collateral Agent shall
have no duty as to any Collateral in its possession or control or in the possession or control of
any agent or bailee or any income thereon or as to preservation of rights against prior parties or
any other rights pertaining thereto and the Collateral Agent shall not be responsible for filing
any financing or continuation statements or recording any documents or instruments in any public office at any time or times or otherwise perfecting or maintaining the
perfection of any security interest in the Collateral. The Collateral Agent shall be deemed to
have exercised reasonable care in the custody of the Collateral in its possession if the Collateral
is accorded treatment substantially equal to that which it accords its own property and shall not
be liable or responsible for any loss or diminution in the value of any of the Collateral, by
reason of

K-15

 

the act or omission of any carrier, forwarding agency or other agent or bailee selected
by the Collateral Agent in good faith.

               16. The Collateral Agent shall not be responsible for the existence, genuineness or value of
any of the Collateral or for the validity, perfection, priority or enforceability of the Liens in
any of the Collateral, whether impaired by operation of law or by reason of any of any action or
omission to act on its part hereunder, except to the extent such action or omission constitutes
negligence, bad faith or wilful misconduct on the part of the Collateral Agent, for the validity or
sufficiency of the Collateral or any agreement or assignment contained therein, for the validity of
the title of the Pledgor to the Collateral, for insuring the Collateral or for the payment of
taxes, charges, assessments or Liens upon the Collateral or otherwise as to the maintenance of the
Collateral.

               17. The Collateral Agent shall have no duty to act outside of the United States in respect of
any Collateral located in the jurisdiction other than the United States.

               SEVEN-ARTICLE SEVENTY INTERCREDITOR AGREEMENT.

          (a) The Liens granted hereunder in favor of the Collateral Agent for the benefit of the
Secured Creditors in respect of the Shared Collateral and the exercise of any right or remedy
related thereto hereunder shall be subject, in each case, to the terms of the Intercreditor
Agreement.

          (b) In the event of any conflict between the terms and provisions of this Agreement and of the
Intercreditor Agreement, the terms and provisions of the Intercreditor Agreement shall govern.

          (c) Notwithstanding anything to the contrary herein, any provision hereof that requires the
Pledgor to (i) deliver any Shared Collateral to the Collateral Agent or (ii) provide that the
Collateral Agent have control over such Shared Collateral may be satisfied by (A) the delivery of
such Shared Collateral by the Pledgor to the Credit Agreement Collateral Agent for the benefit of
the Lenders and the Collateral Agent for the benefit of the Secured Creditors pursuant to Section
5.4 of the Intercreditor Agreement and (B) providing that the Credit Agreement Collateral Agent be
provided with control with respect to such Shared Collateral of the Pledgor for the benefit of the
Lenders and the Collateral Agent for the benefit of Secured Creditors pursuant to Section 5.4 of
the Intercreditor Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

K-16

 

               IN WITNESS WHEREOF, the Pledgor and the Collateral Agent have caused this Agreement to be
executed by their duly elected officers duly authorized as of the date first above written.

	 	 	 	 	 
	 	 	 ,
	 	
as the Pledgor

 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK, as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

K-17

 

SCHEDULE A

Part I. Pledged Stock

	 	 	 	 	 	 	 	 	 	 	 	Percentage of
	 	 	 	 	 	 	 	 	 	 	 	Class of
	Name of	 	 	 	 	Number	 	 	Certificate	 	 	Capital Stock
	Issuing Corporation	 	Type of Shares	 	 	of Shares	 	 	No(s).	 	 	of Issuer

Part II. Pledged Interests

	Name of Issuing	 	 	 	 	 	 	 	Percentage of all Outstanding
	Non-Corporate Entity	 	Type of Interest	 	 	Certificate No(s).	 	 	Interests of Issuer

K-18

 

SCHEDULE B

	 	 	 	 	 	 	 	 	Organizational	 	 	 	 	 	 
	Pledgor’s	 	Type of	 	 	Jurisdiction of	 	 	Identification	 	 	Chief Executive	 	 	Principal Place
	Exact Name	 	Organization	 	 	Organization	 	 	Number	 	 	Office	 	 	of Business

K-19

 

EXHIBIT 1

LEDGE AMENDMENT

               This Pledge Amendment, dated _______, is delivered pursuant to Section 3.2 of
the Agreement referred to below. The undersigned hereby agrees that this Pledge Amendment may be
attached to the PLEDGE AGREEMENT, dated as of November 24, 2004, between the undersigned and The
Bank of New York, as Collateral Agent (the “Agreement”; capitalized terms used herein and
not defined have the meanings ascribed to them in the Agreement) and that the Pledged Securities

listed on this Pledge Amendment shall be deemed to be and shall become part of the Collateral and
shall secure all Obligations.

	 	 	 	 	 
	 	 	 ,
	 	
as the Pledgor

 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Part I. Pledged Stock

	 	 	 	 	 	 	 	 	 	 	 	Percentage of
	 	 	 	 	 	 	 	 	 	 	 	Class of
	Name of	 	 	 	 	Number	 	 	Certificate	 	 	Capital Stock
	Issuing Corporation	 	Type of Shares	 	 	of Shares	 	 	No(s).	 	 	of Issuer

Part II. Pledged Interests

	Name of Issuing	 	 	 	 	 	 	 	Percentage of all Outstanding
	Non-Corporate Entity	 	Type of Interest	 	 	Certificate No(s).	 	 	Interests of Issuer

K-20

 

EXHIBIT 2

FORM OF ISSUER ACKNOWLEDGMENT

               The undersigned hereby (i) acknowledges receipt of a copy of the PLEDGE AGREEMENT (as amended,
amended and restated, supplemented or otherwise modified from time to time, the “Agreement”;
capitalized terms used herein but not defined herein have the meanings given such terms in the
Agreement), dated as of November 24, 2004, between [NAME OF ENTITY], a[n] [JURISDICTION OF
INCORPORATION] corporation (the “Pledgor”), and THE BANK OF NEW YORK, as collateral agent (in such
capacity, the “Collateral Agent”), (ii) agrees promptly to note on its books the security
interests granted and confirmed under the Agreement in [DESCRIBE SECURITIES] (the
“Uncertificated Securities”), (iii) agrees that it will comply with the instructions of the
Collateral Agent with respect to the Uncertificated Securities and all proceeds and other interests
related thereto constituting Collateral without further consent by the Pledgor, (iv) agrees to
notify the Collateral Agent upon obtaining knowledge of any interest in favor of any Person in the
Uncertificated Securities or any related Collateral that is adverse to the interest of the
Collateral Agent therein and (v) waives any right or requirement at any time hereafter to receive a
copy of the Agreement in connection with the registration of the Uncertificated Securities
thereunder in the name of the Collateral Agent or its nominee or the exercise of voting rights by
the Collateral Agent or its nominee.

	 	 	 	 	 
	 	[NAME OF ISSUER]

 	 
	 	By:  	 	 
	 	 	Name: 	 
	 	 	Title:  	 
	 

K-21

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