Document:

exv10w1

 

EXHIBIT 10.1

SOUTHWEST BANCORPORATION OF TEXAS, INC.

DIRECTOR AND OFFICER INDEMNITY AGREEMENT

     This instrument evidences an INDEMNITY AGREEMENT, effective as of December 31, 2004, made
between Southwest Bancorporation of Texas, Inc., a Texas corporation (“the Corporation”), and
                                              (the “Indemnified Party”).

Recitals

     WHEREAS, the Indemnified Party is an officer or a member of the Board of Directors of the
Corporation and in such capacity is performing valuable services for the Corporation and the
Corporation wishes the Indemnified Party to continue in such capacity and the Indemnified Party is
willing, under certain circumstances, to continue in such capacity;

     WHEREAS, the Indemnified Party may from time to time serve as a director, officer, employee,
agent, or fiduciary of other corporations, partnerships, joint ventures, trusts, or other
enterprises, entities, or plans at the request of the Corporation to pursue the Corporation’s
interests;

     WHEREAS, the Articles of Incorporation (“the Articles”) of the Corporation provide for the
mandatory indemnification of persons serving as directors, officers, employees, and agents of the
Corporation or serving, at the request of the Corporation, as directors, officers, partners, or
trustees of another foreign or domestic corporation, partnership, joint venture, trust or employee
benefit plan permitted by Section B of Section 2.02-1 of the Texas Business Corporation Act (“the
State Statute”);

     WHEREAS, in accordance with the authorization provided by the State Statute, the Corporation
has purchased and will maintain a policy of Directors’ and Officers’ Liability Insurance (“D&O
Insurance”) covering certain liabilities that may be incurred by its directors and officers in the
performance of their services for the Corporation, possibly including certain liabilities for which
indemnification by the Corporation is not authorized or permitted under the State Statute;

     WHEREAS, uncertainties with respect to the terms and availability of D&O Insurance and with
respect to the application, amendment, and enforcement of statutory and by-law indemnification
provisions make it desirable to supplement and enhance the adequacy and reliability of the
protection afforded to directors and officers thereby; and

     WHEREAS, to supplement and enhance the protection afforded the Indemnified Party and to induce
the Indemnified Party to continue to serve as a member of the Board of Directors or as an officer
or both of the Corporation, the Corporation has determined and agreed to enter into this Agreement
with the Indemnified Party, which has been approved and adopted by the Corporation’s Board of
Directors.

 

 

Agreement

     NOW, THEREFORE, in consideration of the Indemnified Party’s continued service as a director or
an officer or both of the Corporation after the date hereof the parties hereto agree as follows:

     Definitions. For purposes of this Agreement:

     “Litigation Costs” means costs, charges, expenses, and obligations, including, without
limitation, all bonds, expenses of investigation, fees and expenses of experts, accountants or
other professionals, travel and lodging expenses, court costs, transcript costs, duplicating costs,
printing and binding costs, telephone charges, postage, delivery fees, and attorneys’ fees,
retainers and expenses, reasonably incurred or contracted for in the investigation, defense, or
prosecution of or other involvement in any Proceeding and any appeal therefrom, and all costs of
appeal, attachment, supersedeas, and other bonds that may be relevant to any Proceeding. A
determination of the reasonableness of expenses shall be made pursuant to the procedure set forth
in Section 10(b).

     “Losses” means the total of all amounts which the Indemnified Party becomes, or may become,
legally obligated to pay in connection with any Proceeding, including (without limitation)
judgments, penalties (including excise and similar taxes), fines, court or investigative costs,
amounts paid in settlement, amounts lost or ordered forfeited pursuant to injunctive sanctions, and
all Litigation Costs.

     “Proceeding” means any threatened, pending or completed action, suit, or proceeding, whether
civil, criminal, administrative, arbitrative, or investigative, any appeal in such an action, suit
or proceeding, and any inquiry or investigation that could lead to such an action suit or
proceeding, whether formal or informal.

     SECTION 1. Indemnity of the Indemnified Party. The Corporation hereby agrees to indemnify the
Indemnified Party to the fullest extent authorized or permitted by the provisions of the State
Statute, including, but not limited to, the maximum extent required or permitted by any amendment
thereof or other statutory provision authorizing or permitting such indemnification which is
adopted after the date hereof.

     SECTION 2. Additional Indemnity. In addition to and not in substitution for or diminution of
the obligations of indemnification set forth in Section 1 hereof, the Corporation hereby further
agrees to indemnify the Indemnified Party to the fullest extent permitted by law against any and
all Litigation Costs and Losses of the Indemnified Party in connection with any Proceeding to which
the Indemnified Party is, was or at any time becomes a party, or is threatened to be made a party
or otherwise becomes involved (other than as plaintiff except where being a plaintiff or intervenor
is necessary to avoid res judicata or collateral estoppel or other estoppel or other result as to
matters which may adversely impact the Indemnified Party) by reason of the fact that the
Indemnified Party is, was, or at any time becomes a director, officer, employee, agent, or
fiduciary of the Corporation, or is or was serving or at any time serves at the request of the
Corporation as a director, officer, employee, agent, or fiduciary of

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another corporation, partnership, joint venture, trust, or other enterprise or of any benefit
plan related to the business and affairs of the Corporation.

     SECTION 3. Limitations on Indemnity. No amounts of indemnity pursuant to Section 1 or 2
hereof shall be paid by the Corporation:

     (a) except to the extent permitted by the State Statute;

     (b) for any amounts of indemnity hereunder of any type whatsoever (including, without
limitation, judgments, fines, excise taxes and penalties, and amounts paid in settlement) for which
payment is actually made to the Indemnified Party under a valid and collectible policy of D&O
Insurance, or under a valid and enforceable indemnity clause, bylaw or other agreement, except in
respect of any excess beyond payment under such insurance, clause, bylaw, or agreement;

     (c) on account of the Indemnified Party’s conduct which is finally adjudged in any Proceeding
to have been knowingly fraudulent, deliberately dishonest, or an act or omission involving willful
misconduct;

     (d) if a final non-appealable decision by a court having jurisdiction over the parties and the
subject matter shall determine that such indemnification is not lawful; or

     (e) if such indemnity is prohibited by Section 18(k) of the Federal Deposit Insurance Act (12
U.S.C. §1828(k)) and the regulations promulgated thereunder or any similar limitation imposed by
state or federal banking law or regulation.

     SECTION 4. Insurance. The Corporation shall maintain in full force and effect, at its own
expense, D&O Insurance coverage for each director and officer in amounts and scope at least as
favorable as that maintained by the Corporation on the date hereof, or, to the extent more
favorable, any D&O Insurance policy entered into or renewed by the Corporation after such date.
Notwithstanding the foregoing, if the Corporation, after using its best efforts, cannot obtain and
purchase such coverage for an amount no more than what it paid for the most recent expiring D&O
Insurance policy plus a reasonable additional amount, the Corporation only shall be required to
purchase such D&O Insurance coverage for any act or omission occurring at or prior to the time of
such date.

     SECTION 5. Continuation of Indemnity. All agreements and obligations of the Corporation
contained herein shall continue during the period the Indemnified Party is a director, officer,
employee, agent, or fiduciary of the Corporation (or is or was serving at the request of the
Corporation as a director, officer, employee, agent, or fiduciary of another corporation,
partnership, joint venture, trust, or other enterprise or any benefit plan related to the business
and affairs of the Corporation or of any of its affiliates, subsidiaries, associates, or other
entities in which it is interested) and shall continue thereafter so long as the Indemnified Party
shall be subject to any possible Litigation Costs or Losses in any Proceeding or other loss or
expense that such Indemnified Party would be indemnified for pursuant to the State Statue by reason
of the fact that the Indemnified Party was a director, officer, employee, agent, or fiduciary of
the Corporation (or is or was serving at the request of the Corporation as a director, officer,
employee, agent, or fiduciary of another corporation, partnership, joint venture, trust, or other

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enterprise or any such benefit plan); during such period, except as required by law, the
Corporation shall take no action to amend, eliminate, or terminate any provisions in the Articles
or the D&O Insurance that would eliminate or limit the rights of the Indemnified Party to
exculpation, indemnity, right to reimbursement of expenses, or other such similar protection.

     SECTION 6. Notification and Defense of Claim. Promptly after receipt by the Indemnified Party
of notice of the commencement of any Proceeding, the Indemnified Party shall, if a claim in respect
thereof is to be made against the Corporation under this Agreement, give written notice to the
Corporation of the commencement thereof as promptly as practicable; but the omission so to notify
the Corporation will not relieve the Corporation from any liability that it may have to the
Indemnified Party unless the Corporation can demonstrate by clear and convincing evidence that it
was materially prejudiced by the failure to receive such notice. With respect to any such
Proceeding as to which the Indemnified Party becomes involved:

     (a) The Corporation will be entitled to participate therein at its own expense.

     (b) Except as otherwise provided below, to the extent that it may wish, the Corporation may,
jointly with any other indemnifying party, assume the defense thereof, with outside counsel that
must be reasonably satisfactory to the Indemnified Party. After notice from the Corporation to the
Indemnified Party of its election so to assume the defense thereof (and consent of the Indemnified
Party as to the Corporation’s choice of outside counsel, which consent will not be unreasonably
withheld), the Corporation will be liable to the Indemnified Party under this Agreement for all
Litigation Costs (subject to Section 4 above and other than as provided below with respect to
attorneys’ fees) incurred in connection therewith. The Indemnified Party shall have the right to
employ personal counsel in such Proceeding, but the fees and expenses of such counsel incurred
after notice from the Corporation of its assumption of the defense thereof (and consent of the
Indemnified Party as to the Corporation’s choice of outside counsel) shall be at the expense of the
Indemnified Party, unless (i) the employment of counsel for the Indemnified Party has been
authorized by the Corporation, (ii) the Indemnified Party shall have concluded in good faith that
there may be a conflict of interest between the Corporation and the Indemnified Party in the
conduct of the defense (or part of the defense) of such action, or (iii) the Corporation in fact
shall not have employed counsel to assume the defense of such action, in each of which cases the
fees and expenses of counsel shall be at the expense of the Corporation. The Corporation shall not
be entitled to assume the defense of any Proceeding brought by or on behalf of the Corporation or
as to which the Indemnified Party shall have made the conclusion provided for in clause (ii) of
this Section 7(b).

     (c) The Corporation shall not be liable to indemnify the Indemnified Party under this
Agreement for any Losses paid in settlement of any Proceeding or claim effected without its written
consent. The Corporation shall not settle any Proceeding or claim in any manner that would impose
any penalty, sanction, or limitation on the Indemnified Party, or otherwise effectively indicate
the existence of any wrongful act by the Indemnified Party, without the Indemnified Party’s written
consent. Neither the Corporation nor the Indemnified Party shall unreasonably withhold its consent
to any proposed settlement. Without intending to limit the circumstances in which it would be
unreasonable for the Corporation to withhold its consent to a settlement, the parties hereto agree
it would be unreasonable for the Corporation to withhold its consent to a settlement in an amount
that did not exceed, in the business judgment of the Board

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of Directors of the Corporation, the estimated amount of Litigation Costs of the Indemnified
Party to litigate the Proceeding to conclusion, provided that there is no other materially adverse
consequence to the Corporation from such settlement.

     SECTION 7. No Presumptions. The termination of any Proceeding by judgment, order, settlement,
or conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a
presumption that (i) the Indemnified Party did not act in good faith, (ii) with respect to any
criminal action or proceeding, the Indemnified Party had reasonable cause to believe that his or
her conduct constituted a criminal violation, or (iii) the Indemnified Party was knowingly
fraudulent, deliberately dishonest, or committed an act, or made an omission, involving willful
misconduct.

     SECTION 8. Mandatory Advancement of Expenses. At the request of the Indemnified Party,
Litigation Costs incurred or contracted for by him or her in any Proceeding shall be paid by the
Corporation on a continuing and current basis, in advance of the final disposition of such matter,
only if the Indemnified Party makes a written (i) affirmation by such Indemnified Party that it is
the Indemnified Party’s good faith belief that he or she has met the standard of conduct necessary
for indemnification under the State Statute and (ii) undertaking that, if it shall be ultimately
determined that the Indemnified Party was not entitled to be indemnified therefor or was not
entitled to be fully indemnified therefor, the Indemnified Party shall repay to the Corporation the
amount, or the appropriate portion thereof, so advanced. Such advancement and current payment of
Litigation Costs by the Corporation shall be made promptly (but in any event within ten days) after
receipt by the Corporation of the Indemnified Party’s request therefor.

     SECTION 9. Repayment of Expenses. The Indemnified Party agrees that the Indemnified Party
will reimburse the Corporation for all Litigation Costs paid by the Corporation in connection with
any Proceeding in which the Indemnified Party is involved in the event and only to the extent that
it shall be ultimately determined by final non-appealable judgment of a court of competent
jurisdiction that the Indemnified Party is not entitled to be indemnified by the Corporation for
such Litigation Costs under the provisions of the State Statute, the Articles, and this Agreement.

SECTION 10. Procedure.

     (a) Indemnification hereunder shall be made promptly and in any event within 30 days of the
Indemnified Party’s written request therefor (such written request to include any written
affirmations or undertakings required by this Agreement), unless (i) an affirmative determination
is made reasonably and within such 30-day period by the Corporation in the manner provided in
Section 10(b) below that the Indemnified Party is not entitled to indemnity hereunder for any
reason other than as contemplated by clause (ii) of this Section 10(a), or (ii) an affirmative
determination is required by the State Statute or other applicable law, in which case the
Corporation will cause such determination to be made within 60 days from the date of the written
request for indemnity.

     (b) The determination to be made by the Corporation under Section 10(a) above shall be based
on the facts known at the time and shall be made (i) by a majority vote of the directors

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of the Board of Directors of the Corporation who at the time of the vote are not named
defendants or respondents in the Proceeding, regardless of whether the directors not named
defendants or respondents constitute a quorum (“disinterested directors”), or (ii) by a vote of a
committee of the Board of Directors of the Corporation, if (a) the committee is designated by a
majority of disinterested directors and (b) the committee consists solely of one or more directors
not named as defendants or respondents in the Proceeding, or (iii) by special legal counsel
selected by the Board of Directors or a committee of the Board of Directors by a vote as set forth
in subsection (i) or (ii) of this paragraph, or (iv) by the shareholders of the Corporation in a
vote that excludes the shares held by directors who are named defendants or respondents in the
Proceeding. Any such determination may be contested by the Indemnified Party as hereinafter
contemplated.

     (c) A failure to make any required determination within the period of time specified shall be
deemed to be a determination favorable to the Indemnified Party, unless otherwise required by the
State Statute.

SECTION 11. Enforcement.

     (a) The Corporation expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on the Corporation hereby and has obtained the approval of its
Board of Directors to induce the Indemnified Party to serve or continue serving as a director or an
officer of Corporation and acknowledges that the Indemnified Party is relying upon this Agreement
in agreeing to serve or continue serving in such capacity.

     (b) In the event the Indemnified Party is required to bring any action to enforce rights or to
collect moneys due under this Agreement, the Corporation shall reimburse the Indemnified Party, on
a continuing and current basis, for all of the Indemnified Party’s reasonable fees and expenses in
bringing and pursuing such action and the Indemnified Party shall have no obligation to reimburse
the Corporation therefor unless the Indemnified Party is not successful in such action after
rendition of a final, non-appealable judgment by a court of competent jurisdiction.

     (c) The right to indemnification hereunder shall be enforceable by the Indemnified Party in
any court of competent jurisdiction if the Indemnified Party’s claim therefor is denied, in whole
or in part, in the manner provided herein, or if no disposition of such claim is made within 60
days from the receipt by the Corporation of the Indemnified Party’s request for indemnification
hereunder.

     SECTION 12. Severability. Each of the provisions of this Agreement is a separate and distinct
agreement and independent of the others so that if any provision hereof shall be held to be invalid
or unenforceable for any reason, such invalidity or unenforceability shall not affect the validity
or enforceability of the other provisions hereof. To the extent necessary to give effect to this
Agreement, should any provision hereof be held invalid or unenforceable, this Agreement shall be
reformed in such a manner as to provide the maximum indemnity contemplated hereby to the
Indemnified Party, it being the intention of the parties hereto that this Agreement be otherwise
given its maximum effect consistent with the laws and, to the extent applicable, public policies of
the State of Texas.

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     SECTION 13. Obligation to Amend. The Corporation agrees to take all actions necessary to
amend this Agreement in the future to increase or otherwise maximize the indemnity protections
intended to be afforded hereby to the extent then permitted by law.

     SECTION 14. Non-exclusivity. The provisions for indemnification and advancement of expenses
set forth in this Agreement shall not be deemed exclusive of any other rights which the Indemnified
Party may have under any provision of law, the direction (howsoever embodied) of any court of
competent jurisdiction, the Articles, the Corporation’s bylaws, the vote of the Corporation’s
shareholders or disinterested directors, other agreements, or otherwise, both as to action in the
Indemnified Party’s official capacity and to action in another capacity while occupying the
Indemnified Party’s position as an agent of the Corporation, and the Indemnified Party’s rights
hereunder shall continue after the Indemnified Party has ceased acting as an agent of the
Corporation and shall inure to the benefit of the heirs, executors, and administrators of the
Indemnified Party.

     SECTION 15. Notice. Any notice, request or other communication hereunder to the Corporation
or the Indemnified Party shall be in writing and delivered or sent by postage prepaid first class
mail or by hand delivery or express mail service as follows: (a) if to the Corporation, addressed
to Southwest Bancorporation of Texas, Inc., 4400 Post Oak Parkway, Houston, Texas 77027,
Attention:Corporate Secretary, or to such other address as the Corporation shall designate from
time to time to the Indemnified Party in writing and, (b) if to the Indemnified Party, to the
address shown on the signature page hereof or to such other address as the Indemnified Party shall
designate from time to time to the Corporation in writing.

SECTION 16. Governing Law; Binding Effect; Amendment and Termination.

     (a) This Agreement shall be interpreted and enforced in accordance with the laws of the State
of Texas.

     (b) This Agreement shall be binding upon the Indemnified Party and upon the Corporation, its
successors and assigns, and shall inure to the benefit of the Indemnified Party, his or her heirs,
personal representatives, and assigns and to the benefit of the Corporation, its successors and
assigns. The Corporation shall require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or any substantial part of the business or assets of the
Corporation, by agreement in form and substance satisfactory to the Indemnified Party, to expressly
assume and agree to perform this Agreement in the same manner and to the same extent that the
Corporation would be required to perform it if no such succession had taken place. Failure of the
Corporation to obtain such agreement prior to effectiveness of any succession shall be a breach of
this Agreement and shall entitle the Indemnified Party to appropriate equitable relief or monetary
damages from the Corporation in an amount necessary to provide the Indemnified Party with the
protections to which he or she would be entitled hereunder. As used in this Agreement, “the
Corporation” shall mean the Corporation as hereinbefore defined and any successor to its business
or assets as aforesaid that executes and delivers the agreement provided for by this Section 16(b)
or that otherwise becomes bound by all of the terms and provisions of this Agreement by operation
of law.

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     (c) No amendment, modification, termination, or cancellation of this Agreement shall be
effective unless in writing signed by both parties hereto.

     SECTION 17. Entire Agreement. This Agreement constitutes the entire agreement and
understanding between the parties relating to the subject matter hereof and supercedes all prior
agreements between the parties relating to the subject matter hereof.

     SECTION 18. Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original, and all of which, taken together, shall constitute one
instrument.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.

	 	 	 	 	 
	 	 	SOUTHWEST BANCORPORATION OF TEXAS, INC.
	

	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	Name:	 	 
	

	 	 	 	 
	

	 	Title:	 	 
	

	 	 	 	 

“The Corporation”

	 	 	 	 	 
	

	 	 	 	 
	 	 	 
	

	 	Name:	 	 
	

	 	 	 	 
	

	 	 	 	 
	

	 	Address:	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 

“The Indemnified Party”

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Exhibit 4.1

AMENDED AND RESTATED

TRUST AGREEMENT

among

IndyMac Bank, F.S.B.

as Seller,

IndyMac ABS, Inc.

as Depositor,

and

Wilmington Trust Company,

as Owner Trustee

Dated as of December 22, 2004

INDYMAC RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1

IndyMac Residential Asset-Backed Notes, Series 2004-LH1

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page	 
	ARTICLE I    DEFINITIONS	 	 	1	 
	 
	 	Section 1.1	 	Capitalized Terms	 	 	1	 
	 
	 	Section 1.2	 	Other Definitional Provisions	 	 	5	 
	ARTICLE II    ORGANIZATION	 	 	6	 
	 
	 	Section 2.1	 	Name	 	 	6	 
	 
	 	Section 2.2	 	Office	 	 	6	 
	 
	 	Section 2.3	 	Purposes and Powers	 	 	6	 
	 
	 	Section 2.4	 	Appointment of Owner Trustee	 	 	7	 
	 
	 	Section 2.5	 	Initial Capital Contribution of Owner Trust Estate	 	 	7	 
	 
	 	Section 2.6	 	Declaration of Trust; Fiscal Year	 	 	7	 
	 
	 	Section 2.7	 	Title to Trust Property	 	 	8	 
	 
	 	Section 2.8	 	Situs of Trust	 	 	8	 
	 
	 	Section 2.9	 	Representations and Warranties of the Depositor	 	 	8	 
	 
	 	Section 2.10	 	Federal Income Tax Treatment	 	 	9	 
	ARTICLE III    TRANSFEROR INTEREST AND CERTIFICATES	 	 	10	 
	 
	 	Section 3.1	 	Initial Ownership	 	 	10	 
	 
	 	Section 3.2	 	The Transferor Interest	 	 	10	 
	 
	 	Section 3.3	 	The Certificates	 	 	10	 
	 
	 	Section 3.4	 	Registration of Transfer and Exchange of Certificates	 	 	10	 
	 
	 	Section 3.5	 	Persons Deemed Owners	 	 	13	 
	 
	 	Section 3.6	 	Access to List of Certificateholders’ Names and Addresses	 	 	13	 
	 
	 	Section 3.7	 	Maintenance of Office or Agency	 	 	13	 
	 
	 	Section 3.8	 	Appointment of Paying Agent	 	 	13	 
	 
	 	Section 3.9	 	Mutilated, Destroyed, Lost or Stolen Certificates	 	 	14	 
	ARTICLE IV    ACTIONS BY OWNER TRUSTEE	 	 	14	 
	 
	 	Section 4.1	 	Prior Notice to the Transferor and the Insurer with Respect to Certain Matters	 	 	14	 
	 
	 	Section 4.2	 	[Reserved]	 	 	16	 
	 
	 	Section 4.3	 	Action by Transferor with Respect to Bankruptcy	 	 	16	 
	 
	 	Section 4.4	 	Restrictions on Transferor’s Power	 	 	16	 

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TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page	 
	ARTICLE V    APPLICATION OF TRUST FUNDS; CERTAIN DUTIES	 	 	16	 
	 
	 	Section 5.1	 	Establishment of Payment Account	 	 	16	 
	 
	 	Section 5.2	 	Application of Trust Funds	 	 	17	 
	 
	 	Section 5.3	 	[Reserved]	 	 	17	 
	 
	 	Section 5.4	 	[Reserved]	 	 	17	 
	 
	 	Section 5.5	 	Accounting and Reports to the Certificateholders, the Internal Revenue Service and Others	 	 	17	 
	ARTICLE VI    AUTHORITY AND DUTIES OF OWNER TRUSTEE	 	 	18	 
	 
	 	Section 6.1	 	General Authority	 	 	18	 
	 
	 	Section 6.2	 	General Duties	 	 	18	 
	 
	 	Section 6.3	 	Action upon Instruction	 	 	18	 
	 
	 	Section 6.4	 	No Duties Except as Specified in this Agreement, the Transaction Documents or in Instructions	 	 	19	 
	 
	 	Section 6.5	 	No Action Except Under Specified Documents or Instructions	 	 	19	 
	 
	 	Section 6.6	 	Restrictions	 	 	20	 
	ARTICLE VII    CONCERNING THE OWNER TRUSTEE	 	 	20	 
	 
	 	Section 7.1	 	Acceptance of Trusts and Duties	 	 	20	 
	 
	 	Section 7.2	 	Furnishing of Documents	 	 	21	 
	 
	 	Section 7.3	 	Representations and Warranties	 	 	21	 
	 
	 	Section 7.4	 	Reliance; Advice of Counsel	 	 	22	 
	 
	 	Section 7.5	 	Not Acting in Individual Capacity	 	 	23	 
	 
	 	Section 7.6	 	Owner Trustee Not Liable for the Certificates or the Mortgage Loans	 	 	23	 
	 
	 	Section 7.7	 	Owner Trustee May Own Certificates and the Class A Notes	 	 	23	 
	 
	 	Section 7.8	 	Licenses	 	 	23	 
	ARTICLE VIII   COMPENSATION OF OWNER TRUSTEE	 	 	24	 
	 
	 	Section 8.1	 	Owner Trustee’s Fees and Expenses	 	 	24	 
	 
	 	Section 8.2	 	Indemnification	 	 	24	 
	 
	 	Section 8.3	 	Payments to the Owner Trustee	 	 	24	 
	ARTICLE IX     TERMINATION OF TRUST AGREEMENT	 	 	24	 
	 
	 	Section 9.1	 	Termination of Trust Agreement	 	 	24	 

ii

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page	 
	ARTICLE X    SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES	 	 	26	 
	 
	 	Section 10.1	 	Eligibility Requirements for Owner Trustee	 	 	26	 
	 
	 	Section 10.2	 	Resignation or Removal of Owner Trustee	 	 	26	 
	 
	 	Section 10.3	 	Successor Owner Trustee	 	 	27	 
	 
	 	Section 10.4	 	Merger or Consolidation of Owner Trustee	 	 	27	 
	 
	 	Section 10.5	 	Appointment of Co-Owner Trustee or Separate Owner Trustee	 	 	27	 
	ARTICLE XI   MISCELLANEOUS	 	 	29	 
	 
	 	Section 11.1	 	Supplements and Amendments	 	 	29	 
	 
	 	Section 11.2	 	No Legal Title to Owner Trust Estate in Transferor or Certificateholders	 	 	30	 
	 
	 	Section 11.3	 	Limitations on Rights of Others	 	 	30	 
	 
	 	Section 11.4	 	Notices	 	 	30	 
	 
	 	Section 11.5	 	Severability	 	 	30	 
	 
	 	Section 11.6	 	Separate Counterparts	 	 	31	 
	 
	 	Section 11.7	 	Successors and Assigns	 	 	31	 
	 
	 	Section 11.8	 	No Petition	 	 	31	 
	 
	 	Section 11.9	 	[Reserved]	 	 	31	 
	 
	 	Section 11.10	 	No Recourse	 	 	31	 
	 
	 	Section 11.11	 	Headings	 	 	31	 
	 
	 	Section 11.12	 	GOVERNING LAW	 	 	31	 
	 
	 	Section 11.13	 	[Reserved]	 	 	31	 
	 
	 	Section 11.14	 	Third Party Beneficiary	 	 	31	 
	 
	 	EXHIBIT A	 	Certificate of Trust	 	 	A-1	 
	 
	 	EXHIBIT B	 	Form of Transfer Certificate	 	 	B-1	 
	 
	 	EXHIBIT C	 	Form of Transferor Certificate	 	 	C-1	 
	 
	 	EXHIBIT D-1	 	Form of Class B-1 Certificate	 	 	D-1	 
	 
	 	EXHIBIT D-2	 	Form of Class B-2 Certificate	 	 	D-2	 
	 
	 	EXHIBIT E	 	Form of Class O Certificate	 	 	E-1	 

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     AMENDED AND RESTATED TRUST AGREEMENT, dated as of December 22, 2004, among IndyMac Bank,
F.S.B., as seller (the “Seller”), IndyMac ABS, Inc., as depositor (the
“Depositor”), and Wilmington Trust Company, a Delaware banking corporation, acting
hereunder not in its individual capacity but solely as owner trustee (the “Owner Trustee”).

     WHEREAS, the Seller, the Depositor and the Owner Trustee entered into a Trust Agreement (the
“Original Trust Agreement”), dated as of December 14, 2004, and filed with the Secretary of
State of the State of Delaware a Certificate of Trust on December 22, 2004, creating IndyMac
Residential Asset-Backed Trust, Series 2004-LH1 (the “Trust”); and

     WHEREAS, the Seller, the Depositor and the Owner Trustee desire to enter into this Amended and
Restated Trust Agreement in order to amend and restate in its entirety the Original Trust Agreement
and to provide for the operation of the Trust upon the terms and conditions more particularly set
forth herein.

     NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained,
the parties hereto hereby amend and restate in its entirety the Original Trust Agreement and agree
as follows:

ARTICLE I DEFINITIONS

     Section 1.1 Capitalized Terms. For all purposes of this Agreement, the following
terms shall have the meanings set forth below:

     Administration Agreement: The Administration Agreement, dated December 22, 2004,
among the Trust, IndyMac Bank, F.S.B., as Administrator, and Deutsche Bank National Trust Company,
as Indenture Trustee and Bond Administrator.

     Administrator: IndyMac Bank, F.S.B., a federal savings bank, and its successors and
assigns.

     Auction Administration Agreement: The Auction Administration Agreement, dated
December 22, 2004, among the Trust, Lehman Brothers Inc., as auction administrator, and Deutsche
Bank National Trust Company, as Indenture Trustee and auction paying agent.

     Auction Proceeds Account: As defined in the Sale and Servicing Agreement.

     Agreement: This Amended and Restated Trust Agreement, as the same may be amended and
supplemented from time to time.

     Bankruptcy Action: As defined in Section 4.1.

     Bond Administrator: Deutsche Bank National Trust Company, a national banking
association, and its successors and assigns.

 

 

     Certificate of Trust: The Certificate of Trust in the form of Exhibit A filed for the
Trust pursuant to Section 3810(a) of the Statutory Trust Act.

     Certificate Register and Certificate Registrar: The register which provides for the
registration of the Certificates and the registration of transfers of Certificates, which shall be
maintained by the Indenture Trustee, as Certificate Registrar.

     Certificateholders or Holders: The Class B Certificateholders, the Class O
Certificateholders and the holder of the Transferor Certificate.

     Certificates: The Class B Certificates, the Class O Certificates and the Transferor
Certificate.

     Class: Collectively, Certificates which have the same priority of payment and bear
the same Class designation and the form of which is identical except for variation in the
Percentage Interest evidenced thereby.

     Class A Notes: Any Class A Note executed by the Trust and authenticated by the
Indenture Trustee pursuant to the Indenture.

     Class B Certificate: Any Class B-1 Certificate or Class B-2 Certificate.

     Class B-1 Certificate: Any Class B-1 Certificate executed by the Trust and
authenticated by the Certificate Registrar, substantially in the form set forth in Exhibit D-1.

     Class B-2 Certificate: Any Class B-2 Certificate executed by the Trust and
authenticated by the Certificate Registrar, substantially in the form set forth in Exhibit D-2.

     Class B-1 Certificateholder or Holder: Any owner of the Class B-1 Certificates, as
shown on the Certificate Register.

     Class B-2 Certificateholder or Holder: Any owner of the Class B-2 Certificates, as
shown on the Certificate Register.

     Class O Certificate: Any Class O Certificate executed by the Trust and authenticated
by the Certificate Registrar, substantially in the form set forth in Exhibit E.

     Class O Certificateholder or Holder: Any owner of the Class O Certificates, as shown
on the Certificate Register.

     Code: The Internal Revenue Code of 1986, as amended from time to time, and Treasury
Regulations promulgated thereunder.

     Corporate Trust Office: With respect to (i) the Owner Trustee, the principal office
of the Owner Trustee at which at any particular time its corporate business shall be administered,
which office on the Closing Date is located at Rodney Square North, 1100 N. Market Street,
Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration; or (ii) the

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Indenture Trustee, the principal office of the Indenture Trustee at which at any particular
time its corporate business shall be administered, which office on the Closing Date is located at
1761 East Saint Andrew Place, Santa Ana, California 92705-4934, Attention: Trust
Administration—IN04H4.

     Depositor: IndyMac ABS Inc., a Delaware corporation, and its successors and assigns.

     ERISA: The Employee Retirement Income Security Act of 1974, as amended.

     Exchange Act: The Securities Exchange Act of 1934, as amended.

     Expenses: As defined in Section 8.2.

     Indemnified Parties: As defined in Section 8.2.

     Indenture: The Indenture, dated as of December 22, 2004, between the Trust and the
Indenture Trustee.

     Indenture Trustee: Deutsche Bank National Trust Company, a national banking
association as Indenture Trustee under the Indenture or any successor indenture trustee under the
Indenture appointed in accordance with such agreement.

     Insurance and Indemnity Agreement: The Insurance and Indemnity Agreement, dated as of
December 22, 2004, among the Insurer, the Trust, the Depositor, the Indenture Trustee, the Seller
and the Servicer.

     Insurer: Ambac Assurance Corporation, a Wisconsin-domiciled stock insurance
corporation, and its successors and assigns.

     Mortgage Loan: As defined in the Sale and Servicing Agreement.

     Mortgage Loan Purchase Agreement: The Mortgage Loan Purchase Agreement, dated as of
December 1, 2004, between the Seller and the Depositor.

     Non-U.S. Person: Any Person other than (i) a citizen or resident of the United
States, (ii) an entity treated for United States federal income tax purposes as a corporation or
partnership created or organized in or under the laws of the United States or any state thereof,
including the District of Columbia (unless, in the case of an entity treated as a partnership,
Treasury regulations provide otherwise), (iii) an estate that is subject to U.S. federal income tax
regardless of the source of its income, (iv) 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 United States
persons have authority to control all substantial decisions of the trust, or (v) certain trusts in
existence on August 20, 1996 and treated as United States persons on such date that elect to
continue to be so treated.

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     Note Insurance Policy: The financial guaranty insurance policy (No. AB0851BE) with
respect to the Class A Notes and all endorsements thereto, if any, dated the Closing Date, issued
by the Insurer for the benefit of the Holders of the Class A Notes.

     Original Trust Agreement: As defined in the recitals hereof.

     Owner Trust Estate: The contribution of $1 referred to in Section 2.5 and the Trust
Estate.

     Owner Trustee: Wilmington Trust Company, a Delaware banking corporation, not in its
individual capacity but solely as owner trustee under this Agreement, and any successor owner
trustee hereunder.

     Payment Account: As defined in the Sale and Servicing Agreement.

     Paying Agent: Means any paying agent or co-paying agent appointed pursuant to Section
3.8 and shall initially be the Indenture Trustee.

     Percentage Interest: As to any Class B or Class O Certificate and any date of
determination, the percentage obtained by dividing the principal denomination of such Certificate
by the aggregate of the principal denominations of all Certificates of the same Class.

     Plan: An “employee benefit plan” within the meaning of Section 3(3) of ERISA.

     Prospective Transferor or Prospective Transferee: Any prospective purchaser or
prospective transferee of the Transferor Interest.

     Rating Agencies: As defined in the Sale and Servicing Agreement.

     Revolving Period Funding Account: As defined in the Sale and Servicing Agreement.

     Sale and Servicing Agreement: The Sale and Servicing Agreement dated as of December
1, 2004, among the Depositor, the Trust, the Servicer, the Seller and the Indenture Trustee.

     Secretary of State: The Secretary of State of the State of Delaware.

     Securities Act: As defined in Section 3.4(b).

     Seller: IndyMac Bank, F.S.B., a federal savings bank, and its successors and assigns.

     Servicer: IndyMac Bank, F.S.B., a federal savings bank, as Servicer, or any successor
servicer appointed pursuant to the Sale and Servicing Agreement.

     Statutory Trust Act: Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code § 3801
et seq., as the same may be amended from time to time.

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     Transaction Documents: Each of this Agreement, the Insurance and Indemnity Agreement,
the Administration Agreement, the Auction Administration Agreement and the Indenture and the Sale
and Servicing Agreement.

     Transferor: The owner of the Transferor Interest and the Transferor Certificate as
shown on the Certificate Register. The initial owner of the Transferor Interest and the Transferor
Certificate as shown on the Certificate Register is IndyMac ABS, Inc.

     Transferor Certificate: The Certificate evidencing the Transferor Interest and
executed by the Trust and authenticated by the Certificate Registrar, substantially in the form of
Exhibit C.

     Transferor Interest: As defined in Section 3.2.

     Treasury Regulations: Regulations, including proposed or temporary regulations,
promulgated under the Code. References herein to specific provisions of proposed or temporary
regulations shall include analogous provisions of final Treasury Regulations or other successor
Treasury Regulations.

     Trust: IndyMac Residential Asset-Backed Trust, Series 2004-LH1, the Delaware
statutory trust created pursuant to this Agreement.

     Trust Estate: The assets subject to the Mortgage Loan Purchase Agreement, the Sale
and Servicing Agreement, this Agreement and the Indenture, assigned to the Indenture Trustee
pursuant to the Indenture, which assets consist of: (i) each Mortgage Loan listed on the Mortgage
Loan Schedule on the Closing Date and the related Mortgage File (including the related Mortgage
Note and Mortgage), including its Cut-Off Date Principal Balance (including all rights of the
Depositor pursuant to the Mortgage Loan Purchase Agreement to purchase Additional Balances with
respect to HELOCs resulting from Draws made pursuant to the related Mortgage Note prior to the
termination of this Agreement) and all related collections in respect of interest and principal
received after the Cut-Off Date; (ii) related property that secured a Mortgage Loan and which has
been acquired by foreclosure or deed in lieu of foreclosure; (iii) its rights under any related
insurance policies maintained in respect of the Mortgage Loans (including any hazard, flood or
title insurance proceeds); (iv) the Collection Account, the Payment Account, the Auction Proceeds
Account, the Revolving Period Funding Account and all funds and other property on deposit from time
to time therein; (v) all other assets included or to be included in the Trust for the benefit of
the Class A Noteholders, the Certificateholders and the Insurer.

     Underwriter: Lehman Brothers Inc.

     Section 1.2 Other Definitional Provisions.

          (a)      Capitalized terms used herein and not otherwise defined herein have the meanings assigned
to them in the Sale and Servicing Agreement or, if not defined therein, in the Indenture.

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          (b)      All terms defined in this Agreement shall have the defined meanings when used in any
certificate or other document made or delivered pursuant hereto unless otherwise defined therein.

          (c)      As used in this Agreement and in any certificate or other document made or delivered
pursuant hereto or thereto, accounting terms not defined in this Agreement or in any such
certificate or other document, and accounting terms partly defined in this Agreement or in any such
certificate or other document to the extent not defined, shall have the respective meanings given
to them under generally accepted accounting principles. To the extent that the definitions of
accounting terms in this Agreement or in any such certificate or other document are inconsistent
with the meanings of such terms under generally accepted accounting principles, the definitions
contained in this Agreement or in any such certificate or other document shall control.

          (d)      The words “hereof,” “herein,” “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement; Section and Exhibit references contained in this Agreement are references to Sections
and Exhibits in or to this Agreement unless otherwise specified; and the term “including” shall
mean “including without limitation.”

          (e)      The definitions contained in this Agreement are applicable to the singular as well as the
plural forms of such terms and to the masculine as well as to the feminine and neuter genders of
such terms.

          (f)      Any agreement, instrument or statute defined or referred to herein or in any instrument or
certificate delivered in connection herewith means such agreement, instrument or statute as from
time to time amended, modified or supplemented and includes (in the case of agreements or
instruments) references to all attachments thereto and instruments incorporated therein; references
to a Person are also to its permitted successors and assigns.

ARTICLE II ORGANIZATION

     Section 2.1 Name. The Trust continued hereby shall be known as “IndyMac Residential
Asset-Backed Trust, Series 2004-LH1,” in which name the Owner Trustee may conduct the business of
the Trust and make and execute contracts and other instruments on behalf of the Trust and the Trust
may sue and be sued.

     Section 2.2 Office. The office of the Trust shall be in care of the Owner Trustee at
the Corporate Trust Office or at such other address in the State of Delaware as the Owner Trustee
may designate by written notice to the Certificateholders.

     Section 2.3 Purposes and Powers.

          (a)      The purpose of the Trust is to engage in the following activities:

     (i)      to issue the Class A Notes pursuant to the Indenture and the Certificates pursuant
to this Agreement and to sell such Class A Notes and Certificates;

6

 

     (ii)      with the proceeds of the sale of the Class A Notes and the Certificates, to fund
start-up and transactional expenses of the Trust and to pay the balance to the Depositor, or
at the direction of the Depositor, to pay the Seller, as its interests may appear pursuant
to the Mortgage Loan Purchase Agreement;

     (iii)      to assign, grant, transfer, pledge, mortgage and convey the Trust Estate pursuant
to the Indenture and to hold, manage and distribute to the Transferor pursuant to the terms
of the Sale and Servicing Agreement any portion of the Trust Estate released from the lien
of, and remitted to the Trust pursuant to, the Indenture;

     (iv)      to enter into and perform its obligations under the Transaction Documents to which
it is to be a party;

     (v)      to engage in those activities, including executing agreements, instruments and
certificates, that are necessary, suitable or convenient to accomplish the foregoing or are
incidental thereto or connected therewith; and

     (vi)      subject to compliance with the Transaction Documents, to engage in such other
activities as may be required in connection with conservation of the Owner Trust Estate and
the making of distributions to the Class A Noteholders and the Certificateholders.

The Trust is hereby authorized to engage in the foregoing activities. The Trust shall not engage
in any activity other than in connection with the foregoing or other than as required or authorized
by the terms of this Agreement or the Transaction Documents.

     Section 2.4 Appointment of Owner Trustee. The Depositor has appointed the Owner
Trustee as trustee of the Trust, to have all the rights, powers and duties set forth herein.

     Section 2.5 Initial Capital Contribution of Owner Trust Estate. The Depositor hereby
sells, assigns, transfers, conveys and sets over to the Trust, as of the date hereof, the sum of
$1. The Owner Trustee hereby acknowledges receipt in trust from the Depositor, as of the date
hereof, of the foregoing contribution, which shall constitute the initial Owner Trust Estate and
shall be deposited in the Payment Account. The Seller shall pay organizational expenses of the
Trust as they may arise or shall, upon the request of the Owner Trustee, promptly reimburse the
Owner Trustee for any such expenses paid by the Owner Trustee.

     Section 2.6 Declaration of Trust; Fiscal Year.

          (a)      The Owner Trustee hereby declares that it will hold the Owner Trust Estate in trust upon
and subject to the conditions set forth herein for the use and benefit of the Transferor, subject
to the obligations of the Trust under the Transaction Documents. It is the intention of the
parties hereto that the Trust constitute a statutory trust under the Statutory Trust Act and that
this Agreement constitute the governing instrument of such statutory trust. It is the intention of
the parties hereto that, solely for income and franchise tax purposes, the Trust shall be treated
as a security arrangement, with the assets of the Trust being the Owner Trust Estate

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and the Transferor being the owner of the Transferor Interest. None of the Owner Trustee, the
Transferor, the Seller or the Depositor will make an affirmative election on Internal Revenue
Service Form 8832 to have the Trust taxed as a corporation for federal income tax purposes. The
parties agree that, unless otherwise required by appropriate tax authorities, the Trust will file
or cause to be filed annual or other necessary returns, reports and other forms, if any, consistent
with the characterization of the Trust as provided in the preceding sentence for such tax purposes.
Effective as of the date hereof, the Owner Trustee shall have all rights, powers and duties set
forth herein and in the Statutory Trust Act with respect to accomplishing the purposes of the
Trust. The Owner Trustee has filed the Certificate of Trust with the Secretary of State.

          (b)      The Trust’s fiscal year will be January 1st to December 31st.

     Section 2.7 Title to Trust Property.

          (a)      Subject to the Indenture, legal title to all the Owner Trust Estate shall be vested at all
times in the Trust as a separate legal entity except where applicable law in any jurisdiction
requires title to any part of the Owner Trust Estate to be vested in a trustee or trustees, in
which case title shall be deemed to be vested in the Owner Trustee, a co-owner trustee and/or a
separate trustee, as the case may be.

          (b)      Neither the Transferor nor any other Certificateholders shall have legal title to any part
of the Owner Trust Estate. No transfer by operation of law or otherwise of any interest of the
Transferor shall operate to terminate this Agreement or the trusts hereunder or entitle any
transferee to an accounting or to the transfer to it of any part of the Owner Trust Estate.

     Section 2.8 Situs of Trust. The Trust will be located in the State of Delaware. All
bank accounts maintained by the Owner Trustee on behalf of the Trust shall be located in the State
of California, the State of Delaware or the State of New York. The Trust shall not have any
employees; provided, however, that nothing herein shall restrict or prohibit the Owner Trustee from
having employees within or without the State of Delaware. Payments will be received by the Trust
only in the State of California, the State of Delaware or the State of New York, and payments will
be made by the Trust only from the State of California, the State of Delaware or the State of New
York. The only office of the Trust will be at the Corporate Trust Office in Delaware.

     Section 2.9 Representations and Warranties of the Depositor.

     The Depositor hereby represents and warrants to the Owner Trustee, the Certificateholders and
the Insurer that:

          (a)      The Depositor is a Delaware corporation validly existing and in good standing. The
Depositor has the power and authority to execute and deliver this Agreement and to perform in
accordance herewith; the execution, delivery and performance of this Agreement (including all
instruments of transfer to be delivered pursuant to this Agreement) by the Depositor and the
consummation of the transactions contemplated hereby have been duly and

8

 

validly authorized by all necessary action of the Depositor; this Agreement evidences the
valid, binding and enforceable obligation of the Depositor; and all requisite action has been taken
by the Depositor to make this Agreement valid, binding and enforceable upon the Depositor in
accordance with its terms, subject to the effect of bankruptcy, insolvency, reorganization,
moratorium and other similar laws relating to or affecting creditors’ rights generally or the
application of equitable principles in any proceeding, whether at law or in equity.

          (b)      The consummation of the transactions contemplated by this Agreement will not result in (i)
the breach of any terms or provisions of the Depositor’s certificate of incorporation or bylaws,
(ii) the breach of any term or provision of, or conflict with or constitute a default under or
result in the acceleration of any obligation under, any material agreement, indenture or loan or
credit agreement or other material instrument to which the Depositor, or its property is subject,
or (iii) the violation of any law, rule, regulation, order, judgment or decree to which the
Depositor or its respective property is subject.

          (c)      To the Depositor’s best knowledge, it is not in default with respect to any order or
decree of any court or any order, regulation or demand of any federal, state, municipal or other
governmental agency, which default might have consequences that would materially and adversely
affect the condition (financial or otherwise) or operations of the Depositor or its properties or
might have consequences that would materially and adversely affect its performance hereunder.

          (d)      To the Depositor’s best knowledge, there are no proceedings or investigations pending or
threatened before any court, regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Depositor or its properties: (A) asserting the
invalidity of this Agreement, (B) seeking to prevent the consummation of any of the transactions
contemplated by this Agreement or (C) seeking any determination or ruling that might materially and
adversely affect the performance by the Depositor of its obligations under, or the validity or
enforceability of, this Agreement.

          (e)      It shall not, for any reason, withdraw or attempt to withdraw from this Agreement,
dissolve, institute proceedings for it to be adjudicated a bankrupt or insolvent, or consent to the
institution of bankruptcy or insolvency proceedings against it, or file a petition seeking or
consenting to reorganization or relief under any applicable federal or state law relating to
bankruptcy, or consent to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of it or a substantial part of its property, or make any
assignment for the benefit of creditors, or admit in writing its inability to pay its debts
generally as they become due, or declare or effect a moratorium on its debt or take any action in
furtherance of any such action.

     Section 2.10 Federal Income Tax Treatment. For United States federal income tax
purposes, the parties hereto intend that, so long as the entire beneficial interest in all the
Certificates is owned by the same person, the Trust will be treated as a business entity that is
disregarded as an entity separate from such person. In the event that the beneficial interest in
the Certificates is owned by more than one person, the parties hereto agree (and any owner of a

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beneficial interest in the Certificates is deemed by the acceptance of such interest to agree)
to treat the Trust as a partnership in which the Certificates represent partnership interests.

ARTICLE III TRANSFEROR INTEREST AND CERTIFICATES

     Section 3.1 Initial Ownership. Upon the formation of the Trust through the
contribution by the Depositor pursuant to Section 2.5, the Transferor and the holders of the Class
B Certificates and the Class O Certificates shall collectively be the sole beneficial owners of the
Trust.

     Section 3.2 The Transferor Interest. The Transferor Interest (as defined below) shall
represent the entire beneficial ownership interest in the assets of the Trust Estate not
represented by the Class B Certificates and Class O Certificates, subject to the debt represented
by the Class A Notes (the “Transferor Interest”).

     Upon the completion of a transfer in accordance with the terms and conditions of this Article
III, a transferee of the Transferor Interest shall become the Transferor, and shall be entitled to
the rights and subject to the obligations of the Transferor hereunder, upon such transferee’s
acceptance of the Transferor Interest and upon such transfer being duly registered in such
transferee’s name pursuant to Section 3.4.

     Section 3.3 The Certificates. The Certificates shall be substantially in the forms
attached hereto as Exhibits C, D-1, D-2 and E, as applicable. The Class B and Class O Certificates
shall be issuable in registered form, in the minimum denomination of $100,000, and integral
multiples of $1,000 in excess thereof. The Transferor Interest shall be certificated, issued in
registered form, and represented by the Transferor Certificate. The holders of the Certificates
shall be entitled to receive distributions in the amounts, at the times, and in the manner set
forth in the Sale and Servicing Agreement.

     The Certificates shall be executed by manual or facsimile signature by a Responsible Officer
of the Owner Trustee on behalf of the Trust upon the written order of the Depositor. Certificates
bearing the manual or facsimile signatures of individuals who were, at the time such signatures
were affixed, authorized to sign on behalf of the Owner Trustee shall bind the Owner Trustee,
notwithstanding that such individuals or any of them have ceased to be so authorized prior to the
authentication and delivery of any such Certificates or did not hold such offices at the date of
such Certificate. 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 in
the form provided herein, executed by the Certificate Registrar initially upon the written
direction of the Depositor by manual signature, and such authentication upon any Certificate shall
be conclusive evidence, and the only evidence, that such Certificate has been duly executed and
delivered hereunder. All Certificates shall be dated the date of their authentication. On the
Closing Date, the Owner Trustee shall execute and the Certificate Registrar shall authenticate the
Certificates.

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     Section 3.4 Registration of Transfer and Exchange of Certificates.

          (a)      The Owner Trustee hereby appoints the Indenture Trustee as Certificate Registrar under
this Agreement. The Certificate Registrar shall keep or cause to be kept, at the office or agency
maintained pursuant to Section 3.7, a Certificate Register. Subject to the provisions of
subsection (b) below and to such reasonable regulations as the Certificate Registrar may prescribe,
the Certificate Register shall provide for the registration of the Certificates and of transfer and
exchange of the Certificates as herein provided. The Certificate Registrar shall be entitled to
all of the privileges, rights, immunities, benefits and protections afforded to the Indenture
Trustee pursuant to the Indenture.

     At the option of a Certificateholder, Certificates may be exchanged for other Certificates of
the same Class in authorized denominations and evidencing the same aggregate percentage interest
upon surrender of the Certificates to be exchanged at the office or agency of the Certificate
Registrar. Whenever any Certificates are so surrendered for exchange, the Owner Trustee shall
execute, and the Certificate Registrar shall authenticate and deliver, the Certificates which the
Certificateholder making the exchange is entitled to receive. Every Certificate presented or
surrendered for registration of transfer or exchange shall be accompanied by a written instrument
of transfer in form satisfactory to the Certificate Registrar duly executed by the holder thereof
or his attorney duly authorized in writing.

     No service charge to the Certificateholders shall be made for any registration of transfer or
exchange of Certificates, but payment of a sum sufficient to cover any tax or governmental charge
that may be imposed in connection with any transfer or exchange of Certificates may be required.

     All Certificates surrendered for registration of transfer or exchange shall be cancelled and
subsequently disposed of by the Certificate Registrar in accordance with the Certificate
Registrar’s customary procedures.

          (b)      No transfer of any Certificate shall be made unless such transfer is made pursuant to an
effective registration statement under the Securities Act and any applicable state securities laws
or is exempt from the registration requirements under the U.S. Securities Act of 1933, as amended
(the “Securities Act”), and such state securities laws. In the event that a transfer is to
be made, a written certification in the following form (which may be in the form of the Transfer
Certificate set forth as Exhibit B hereto) shall be delivered to the Certificate Registrar
by the Certificateholder desiring to effect such transfer certifying in its reasonable belief,
that:

     (i)      Such Person is (A) a “qualified institutional buyer” as defined in Rule 144A under
the Securities Act, and is aware that the seller of such Certificate may be relying on the
exemption from the registration requirements of the Securities Act provided by Rule 144A and
is acquiring such Certificate for its own account or for the account of one or more
qualified institutional buyers for whom it is authorized to act, (B) an “accredited
investor” as defined in Rule 501(a) under the Securities Act , or (C) a Person involved in
the organization or operation of the Trust or an affiliate of such

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Person within the meaning of Rule 3a-7 of the 1940 Act, as amended (including, but not
limited to, the Depositor).

     (ii)      Such Person understands that such Certificate has not been and will not be
registered under the Securities Act and may be offered, sold, pledged or otherwise
transferred only to a person whom the seller reasonably believes is (A) a “qualified
institutional buyer,” (B) “an accredited investor” or (C) a Person involved in the
organization or operation of the Trust or an affiliate of such Person, in each case in a
transaction meeting the requirements of Rule 144A under the Securities Act or that is
otherwise exempt from registration under the Securities Act and in accordance with any
applicable securities laws of any state of the United States.

No transfer of a Certificate shall be made unless the Certificate Registrar shall have received
either (i) a representation letter from the transferee of such Certificate, acceptable to and in
form and substance satisfactory to the Certificate Registrar and the Owner Trustee, to the
effect that such transferee is not a Plan or a Person acquiring such Certificate for, on behalf
of or with the assets of, any such Plan (a “Benefit Plan Investor”), which
representation letter shall not be an expense of the Owner Trustee, the Certificate Registrar or
the Trust or (ii) in the case of any Certificate presented for registration in the name of a
Benefit Plan Investor without a representation as required above, an Opinion of Counsel
satisfactory to the Owner Trustee and the Certificate Registrar to the effect that the purchase
or holding of such Certificate will not result in prohibited transactions under Section 406 of
ERISA and/or Section 4975 of the Code and will not subject the Owner Trustee, the Certificate
Registrar, the Depositor, the Seller or the Servicer to any obligation in addition to those
undertaken in this Agreement, which Opinion of Counsel shall not be an expense of such parties
or the Trust. In the event that a representation is violated, or any attempt to transfer a
Certificate to a Benefit Plan Investor is attempted without the delivery to the Certificate
Registrar of the Opinion of Counsel described above, the attempted transfer or acquisition of
such Certificate shall be void and of no effect.

To the extent permitted under applicable law (including, but not limited to, ERISA), neither the
Owner Trustee nor the Certificate Registrar shall be under any liability to any Person for any
registration of transfer of any Certificate that is in fact not permitted by this Section 3.4 or
for making any payments due on such Certificate to the Holder thereof or taking any other action
with respect to such Holder under the provisions of this Agreement so long as the transfer was
registered by the Certificate Registrar in accordance with the foregoing requirements.

          (c)      It is the intention of the parties hereto that at all times the Trust is in existence, a
100% Percentage Interest in each of the Transferor Certificate, the Class O Certificates and the
Class B Certificates be held at all times by a single member of the IndyMac Affiliated Group. Any
pledge or transfer of any interest in any of the Transferor Certificate, the Class O Certificates
or the Class B Certificates (whether to another member of the IndyMac Affiliated Group or
otherwise) other than a transfer of the entire beneficial interest in all the Certificates from one
member to another member of the IndyMac Affiliated Group is prohibited, unless, at the time of such
transfer, the transferor, at the transferor’s expense, provides an Opinion of Counsel to the Owner
Trustee, the Certificate Registrar and the Insurer (if the Class

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A Notes remain outstanding at such time) to the effect that the pledge or transfer will not
(i) cause the Trust to be treated for federal income tax purposes as an association or publicly
traded partnership taxable as a corporation or as a taxable mortgage pool, or (ii) jeopardize the
status of the Class A Notes as debt for all purposes. Any attempted or purported pledge or
transfer in violation of this Section 3.4(c) shall be absolutely null and void and shall vest no
rights in the purported transferee.

     Section 3.5 Persons Deemed Owners. The Servicer, the Seller, the Depositor, the
Certificate Registrar and the Owner Trustee and any agent of the foregoing Persons may treat the
Person in whose name any Certificate is registered as the owner of such Certificate for the purpose
of receiving distributions as provided in this Agreement and for all other purposes whatsoever, and
none of the Servicer, the Seller, the Depositor, the Certificate Registrar, the Owner Trustee, nor
any agent of such Persons shall be affected by any notice to the contrary.

     Section 3.6 Access to List of Certificateholders’ Names and Addresses. If three or
more Certificateholders (a) request such information in writing from the Certificate Registrar, (b)
state that such Certificateholders desire to communicate with other Certificateholders with respect
to their rights under this Agreement or under the Certificates, and (c) provide a copy of the
communication which such Certificateholders propose to transmit, or if the Servicer shall request
such information in writing from the Certificate Registrar, then the Certificate Registrar shall,
within ten Business Days after the receipt of such request, provide the Servicer or such
Certificateholders at such recipients’ expense the most recent list of the Certificateholders held
by the Certificate Registrar, if any. Every Certificateholder, by receiving and holding a
Certificate, agree that neither the Owner Trustee nor the Certificate Registrar shall be held
accountable by reason of the disclosure of any such information as to the list of the
Certificateholders hereunder, regardless of the source from which such information was derived.

     Section 3.7 Maintenance of Office or Agency. The Certificate Registrar, on behalf of
the Trust, will maintain or cause to be maintained at its expense an office or offices or agency or
agencies at DTC Transfer Agent Services, 55 Water Street, Jeanette Park Entrance, New York, NY
10041, where Certificates may be surrendered for registration of transfer or exchange. The
Certificate Registrar will give prompt written notice to the Certificateholders of any change in
such location of any such office or agency.

     Section 3.8 Appointment of Paying Agent. The Trust hereby appoints the Indenture
Trustee as Paying Agent under this Agreement. The Paying Agent shall be entitled to the benefits,
rights, immunities, indemnities and protections of the Indenture Trustee pursuant to the Indenture.
The Paying Agent shall make distributions to the Certificateholders from the Payment Account
pursuant to Section 5.2 hereof and Section 5.01 of the Sale and Servicing Agreement and shall
report the amounts of such distributions to the Owner Trustee via the statement to holders on its
website, located at https://www.tss.db.com/invr. The Paying Agent shall have the revocable power
to withdraw funds from the Payment Account for the purpose of making the distributions referred to
above. In the event that the Indenture Trustee shall no longer be the Paying Agent hereunder, the
Trust shall appoint a successor to act as Paying Agent (which shall at all times be a corporation
duly incorporated and validly existing under the laws of the United States of America or any state
thereof, authorized under such laws to exercise corporate trust

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powers and subject to supervision or examination by federal or state authorities). The Trust
shall cause such successor Paying Agent or any additional Paying Agent appointed by it to execute
and deliver to the Trust an instrument in which such successor Paying Agent or additional Paying
Agent shall agree with the Trust that as Paying Agent, such successor Paying Agent or additional
Paying Agent will hold all sums, if any, held by it for payment to the Certificateholders in trust
for the benefit of the Certificateholders until such sums shall be paid to the Certificateholders.
The Paying Agent shall return all unclaimed funds to the Owner Trustee, and upon removal of a
Paying Agent, such Paying Agent shall also return all funds in its possession to the Owner Trustee.
Any reference in this Agreement to the Paying Agent shall include any co-paying agent unless the
context requires otherwise.

     Section 3.9 Mutilated, Destroyed, Lost or Stolen Certificates. If (a) any mutilated
Certificate shall be surrendered to the Certificate Registrar, or if the Certificate Registrar
shall receive evidence to its satisfaction of the destruction, loss or theft of any Certificate and
(b) there shall be delivered to the Certificate Registrar and the Owner Trustee such security or
indemnity as may be required by them to save each of them harmless, then in the absence of notice
that such Certificate shall have been acquired by a bona fide purchaser, upon request of the
Certificate Registrar, upon which it may fully rely, the Owner Trustee on behalf of the Trust shall
execute and the Certificate Registrar shall authenticate and deliver, in exchange for or in lieu of
any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of like class, tenor
and interest. In connection with the issuance of any new Certificate under this Section, the Owner
Trustee or the Certificate Registrar may require the payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection therewith (including the fees and
expenses of the Certificate Registrar and its counsel). Any duplicate Certificate issued pursuant
to this Section shall constitute conclusive evidence of an ownership interest in the Trust, as if
originally issued, whether or not the lost, stolen or destroyed Certificate shall be found at any
time.

ARTICLE IV ACTIONS BY OWNER TRUSTEE

     Section 4.1 Prior Notice to the Transferor and the Insurer with Respect to Certain
Matters. With respect to the following matters, the Owner Trustee shall not take action, and
neither the Transferor nor the Insurer shall direct the Owner Trustee to take any action, unless
(i) the Insurer has provided its written consent and (ii) at least 30 days before the taking of
such action, the Owner Trustee shall have notified the Transferor in writing of the proposed action
and neither the Transferor nor the Insurer shall have notified the Owner Trustee in writing prior
to the 30th day after such notice is given that the Transferor has withheld consent or the
Transferor or the Insurer has provided alternative direction:

          (a)      the initiation of any claim or lawsuit by the Trust (except claims or lawsuits brought in
connection with the collection of the Mortgage Loans) and the compromise of any action, claim or
lawsuit brought by or against the Trust (except with respect to the aforementioned claims or
lawsuits for collection of the Mortgage Loans);

          (b)      the election by the Trust to file an amendment to the Certificate of Trust (unless such
amendment is required to be filed under the Statutory Trust Act);

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          (c)      the amendment or other change to this Agreement or any Transaction Document in
circumstances where the consent of any Class A Noteholder or the Insurer is required;

          (d)      the amendment or other change to this Agreement or any Transaction Document in
circumstances where the consent of any Class A Noteholder or the Insurer is not required and such
amendment materially adversely affects the interest of the Transferor or any other
Certificateholder;

          (e)      the appointment pursuant to the Indenture of a successor Note Registrar, Paying Agent or
Indenture Trustee, or the consent to the assignment by the Note Registrar, Paying Agent or
Indenture Trustee of its obligations under the Indenture;

          (f)      the consent to the calling or waiver of any default of any Transaction Document;

          (g)      the consent to the assignment by the Indenture Trustee or the Seller of their respective
obligations under any Transaction Document;

          (h)      except as provided in Article IX hereof, dissolve, terminate or liquidate the Trust in
whole or in part;

          (i)      merge or consolidate the Trust with or into any other entity, or, except as contemplated
by the Section 3.16 of the Indenture, convey or transfer all or substantially all of the Trust’s
assets to any other entity;

          (j)      cause the Trust to incur, assume or guaranty any indebtedness other than the Class A
Notes, as set forth in this Agreement;

          (k)      do any act that conflicts with any other Transaction Document;

          (l)      do any act which would make it impossible to carry on the ordinary business of the Trust;

          (m)      confess a judgment against the Trust;

          (n)      possess Trust assets, or assign the Trust’s right to property, for other than a Trust
purpose; or

          (o)      change the Trust’s purpose and powers from those set forth in this Agreement.

     In addition, except as specifically contemplated by the Transaction Documents, the Trust shall
not commingle its assets with those of any other entity. The Trust shall maintain its financial
and accounting books and records separate from those of any other entity. Except as expressly set
forth herein, the Trust shall pay its indebtedness, operating expenses from its own funds, and the
Trust shall not pay the indebtedness, operating expenses and liabilities of any

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other Person. The Trust shall maintain appropriate minutes or other records of all
appropriate actions and shall maintain its office separate from the offices of the Depositor or the
Seller, and any of their respective affiliates. For accounting purposes, the Trust shall be
treated as an entity separate and distinct from the Transferor. The pricing and other material
terms of all transactions and agreements to which the Trust is a party shall be intrinsically fair
to all parties thereto.

     The Owner Trustee shall not have the power, except upon the direction of the Transferor and
with the consent of the Insurer (which consent shall not be unreasonably withheld), and to the
extent otherwise consistent with the Transaction Documents, to (i) remove or replace the Servicer
or the Indenture Trustee, (ii) institute proceedings to have the Trust declared or adjudicated a
bankrupt or insolvent, (iii) consent to the institution of bankruptcy or insolvency proceedings
against the Trust, (iv) file a petition or consent to a petition seeking reorganization or relief
on behalf of the Trust under any applicable federal or state law relating to bankruptcy, (v)
consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or any
similar official) of the Trust or a substantial portion of the property of the Trust, (vi) make any
assignment for the benefit of the Trust’s creditors, (vii) cause the Trust to admit in writing its
inability to pay its debts generally as they become due, or (viii) take any action, or cause the
Trust to take any action, in furtherance of any of the foregoing (any of the above, a
“Bankruptcy Action”). So long as the Indenture remains in effect, the Transferor shall not
have the power to take, and shall not take, any Bankruptcy Action with respect to the Trust or
direct the Owner Trustee to take any Bankruptcy Action with respect to the Trust.

     The Owner Trustee shall not have the power, except upon the written direction of the
Transferor, to (a) remove the Administrator under the Administration Agreement pursuant to Section
9(c) thereof, or (b) appoint a successor Administrator pursuant to Section 9(e) of the
Administration Agreement. The Owner Trustee shall take the actions referred to in the preceding
sentence only upon written instruction of the Transferor.

     Section 4.2 [Reserved].

     Section 4.3 Action by Transferor with Respect to Bankruptcy. To the fullest extent
permitted by applicable law, the Owner Trustee shall not have the power to commence a voluntary
proceeding in bankruptcy relating to the Trust without the prior consent and approval of (i) the
Insurer, and (ii) the Transferor; and the delivery to the Owner Trustee by the Transferor of a
certificate certifying that such Transferor reasonably believes that the Trust is insolvent. The
terms of this Section 4.3 shall survive for one year and one day following the termination of this
Agreement

     Section 4.4 Restrictions on Transferor’s Power. The Transferor shall not direct the
Owner Trustee to take or refrain from taking any action if such action or inaction would be
contrary to any obligation of the Trust or the Owner Trustee under this Agreement or any of the
Transaction Documents or would be contrary to Section 2.3 hereof, nor shall the Owner Trustee be
obligated to follow any such direction, if given.

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ARTICLE V APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

     Section 5.1 Establishment of Payment Account. The Trust hereby appoints the Indenture
Trustee for the purpose of establishing and maintaining the Payment Account and making the
distributions and payments therefrom to the Persons entitled thereto pursuant to Section 5.01 of
the Sale and Servicing Agreement. The Trust shall cause the Indenture Trustee to establish and
maintain with the Indenture Trustee for the benefit of the Trust one or more Eligible Accounts in
accordance with the Indenture.

     Section 5.2 Application of Trust Funds.

     (a)      On each Payment Date, the Paying Agent shall make the distributions and payments set forth
in Section 5.01 of the Sale and Servicing Agreement from amounts on deposit in the Payment Account
and the Auction Proceeds Account.

     (b)      In the event that any withholding tax is imposed on the Trust’s payment (or allocations of
income) to any Certificateholder, such tax shall reduce the amount otherwise distributable to the
Certificateholder in accordance with this Section 5.2. The Paying Agent is hereby authorized and
directed to retain from amounts otherwise distributable to the Certificateholder sufficient funds
for the payment of any tax that is legally owed by the Trust (but such authorization shall not
prevent the Paying Agent from contesting any such tax in appropriate proceedings, and withholding
payment of such tax, if permitted by law, pending the outcome of such proceedings). The amount of
any withholding tax imposed with respect to the Certificateholder shall be treated as cash
distributed to the Certificateholder at the time it is withheld by the Trust and remitted to the
appropriate taxing authority. If there is a possibility that withholding tax is payable with
respect to a distribution (such as a distribution to a Non-U.S. Person), the Paying Agent may in
its sole discretion withhold such amounts in accordance with this paragraph (b). In the event that
the Certificateholder wishes to apply for a refund of any such withholding tax, the Owner Trustee
and the Paying Agent shall reasonably cooperate with the Certificateholder in making such claim so
long as the Certificateholder agrees to reimburse the Owner Trustee and the Paying Agent for any
out-of-pocket expenses incurred.

     Section 5.3 [Reserved].

     Section 5.4 [Reserved].

     Section 5.5 Accounting and Reports to the Certificateholders, the Internal Revenue Service
and Others. Upon written request of any Certificateholder, the Owner Trustee shall deliver to
the Certificateholder such information, reports or statements in its possession as may be required
by the Code and applicable Treasury Regulations and as may be required to enable the
Certificateholder to prepare its respective federal and state income tax returns. Consistent with
the Trust’s characterization for tax purposes as a security arrangement for the issuance of
non-recourse debt, no federal income tax return shall be filed on behalf of the Trust unless either
(a) the Trust or the Transferor shall receive an Opinion of Counsel based on a change in applicable
law occurring after the date hereof that the Code requires such a filing, (b) there is more than
one beneficial owner of the Certificates, or (c) the Internal Revenue Service shall

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determine that the Trust is required to file such a return. In the event that the Trust is
required to file tax returns, the Bond Administrator, on behalf of the Trust, shall elect under
Section 1278 of the Code to include in income currently any market discount that accrues with
respect to the Mortgage Loans. The Bond Administrator, on behalf of the Trust, shall prepare or
shall cause to be prepared any tax returns required to be filed by the Trust and shall file such
returns with the appropriate tax authorities.

ARTICLE VI AUTHORITY AND DUTIES OF OWNER TRUSTEE

     Section 6.1 General Authority. The Owner Trustee is authorized and directed to
execute and deliver or cause to be executed and delivered the Class A Notes, and the Transaction
Documents to which the Trust is to be a party and each certificate or other document attached as an
exhibit to or contemplated by the Transaction Documents to which the Trust is to be a party and any
amendment or other agreement or instrument described in Article III, in each case, in such form as
the Owner Trustee shall approve, as evidenced conclusively by the Owner Trustee’s execution
thereof, and, on behalf of the Trust, to direct the Indenture Trustee to authenticate and deliver
the Class A Notes in an aggregate principal amount equal to $500,000,000. In addition to the
foregoing, the Owner Trustee is authorized, but shall not be obligated, to take all actions
required of the Trust pursuant to the Transaction Documents.

     Section 6.2 General Duties. It shall be the duty of the Owner Trustee to discharge
(or cause to be discharged) all of its responsibilities pursuant to the terms of this Agreement and
the Transaction Documents to which it is a party and to administer the Trust in the interest of the
Certificateholders, subject to the Transaction Documents and in accordance with the provisions of
this Agreement. Notwithstanding the foregoing, the Owner Trustee shall be deemed to have
discharged its duties and responsibilities hereunder and under the Transaction Documents to the
extent the Administrator or Bond Administrator has agreed in the Administration Agreement to
perform any act or to discharge any duty of the Owner Trustee hereunder or under any Transaction
Document, and the Owner Trustee shall not be held liable for the default or failure of the
Administrator or the Bond Administrator to carry out their respective obligations under the
Administration Agreement.

     Section 6.3 Action upon Instruction.

          (a)      Subject to Article IV herein and in accordance with the terms of the Transaction
Documents, the Transferor or the Insurer (so long as no Insurer Default (as defined in the Sale and
Servicing Agreement) exists) may by written instruction direct the Owner Trustee in the management
of the Trust but only to the extent consistent with the limited purpose of the Trust.

          (b)      Notwithstanding the foregoing, the Owner Trustee shall not be required to take any action
hereunder or under any Transaction Document if the Owner Trustee shall have reasonably determined,
or shall have been advised by counsel, that such action is likely to result in liability on the
part of the Owner Trustee or is contrary to the terms hereof or of any Transaction Document or is
otherwise contrary to law.

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          (c)      Whenever the Owner Trustee is unable to decide between alternative courses of action
permitted or required by the terms of this Agreement or under any Transaction Document, the Owner
Trustee shall promptly give notice (in such form as shall be appropriate under the circumstances)
to the Transferor and the Insurer (so long as no Insurer Default exists) requesting instruction
from the Transferor and the Insurer (so long as no Insurer Default exists) as to the course of
action to be adopted, and to the extent the Owner Trustee acts in good faith in accordance with any
written instruction of the Transferor or the Insurer received, the Owner Trustee shall not be
liable on account of such action to any Person. In the event the written instructions received
from the Transferor and the Insurer are in conflict, preference shall be given to the instructions
of the Insurer (so long as no Insurer Default exists and such instructions do not conflict with the
limited purpose of the Trust). If the Owner Trustee shall not have received appropriate
instruction within 10 days of such notice (or within such shorter period of time as reasonably may
be specified in such notice or may be necessary under the circumstances) it may, but shall be under
no duty to, take or refrain from taking such action, not inconsistent with this Agreement or the
Transaction Documents, as it shall deem to be in the best interest of the Certificateholders, and
shall have no liability to any Person for such action or inaction.

          (d)      In the event that the Owner Trustee is unsure as to the application of any provision of
this Agreement or any Transaction Document or any such provision is ambiguous as to its
application, or is, or appears to be, in conflict with any other applicable provision, or in the
event that this Agreement provides no direction to the Owner Trustee or is silent or is incomplete
as to the course of action that the Owner Trustee is required to take with respect to a particular
set of facts, the Owner Trustee may give notice (in such form as shall be appropriate under the
circumstances) to the Transferor and the Insurer requesting instruction and, to the extent that the
Owner Trustee acts or refrains from acting in good faith in accordance with any such instruction
received from the Insurer, or if there is an Insurer Default, the Transferor, the Owner Trustee
shall not be liable, on account of such action or inaction, to any Person. If the Owner Trustee
shall not have received appropriate instruction within 10 days of such notice (or within such
shorter period of time as reasonably may be specified in such notice or may be necessary under the
circumstances) it may, but shall be under no duty to, take or refrain from taking such action, not
inconsistent with this Agreement or the Transaction Documents, as it shall deem to be in the best
interest of the Certificateholders, and shall have no liability to any Person for such action or
inaction.

     Section 6.4 No Duties Except as Specified in this Agreement, the Transaction Documents or
in Instructions. The Owner Trustee shall not have any duty or obligation to manage, make any
payment with respect to, register, record, sell, dispose of, or otherwise deal with the Owner Trust
Estate, or to otherwise take or refrain from taking any action under, or in connection with, any
document contemplated hereby to which the Owner Trustee or the Trust is a party, except as
expressly provided by the terms of this Agreement, any Transaction Document to which the Owner
Trustee is a party or in any written instruction received by the Owner Trustee pursuant to Section
6.3; and no implied duties or obligations shall be read into this Agreement or any Transaction
Document against the Owner Trustee. The Owner Trustee shall have no responsibility for filing any
financing or continuation statement in any public office at anytime or to otherwise perfect or
maintain the perfection of any security interest or lien granted to it

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hereunder or to prepare or file any tax or Commission filing for the Trust or to record this
Agreement or any Transaction Document. The Owner Trustee nevertheless agrees that it will, at its
own cost and expense, promptly take all action as may be necessary to discharge any liens on any
part of the Owner Trust Estate that result from actions by, or claims against, the Owner Trustee in
its individual capacity that are not related to the ownership or the administration of the Owner
Trust Estate.

     Section 6.5 No Action Except Under Specified Documents or Instructions. The Owner
Trustee shall not manage, control, use, sell, dispose of or otherwise deal with any part of the
Owner Trust Estate except (i) in accordance with the powers granted to and the authority conferred
upon the Owner Trustee pursuant to this Agreement, (ii) in accordance with the Transaction
Documents or (iii) in accordance with any document or instruction delivered to the Owner Trustee
pursuant to Section 6.3 above.

     Section 6.6 Restrictions. The Owner Trustee shall not take any action (a) that is
inconsistent with the purposes of the Trust set forth in Section 2.3 hereof or (b) that, to the
actual knowledge of the Owner Trustee, would result in the Trust’s becoming taxable as a
corporation for Federal income tax purposes or jeopardize the status of the Class A Notes as debt
for all purposes. The Transferor shall not direct the Owner Trustee to take action that would
violate the provisions of this Section 6.6.

ARTICLE VII CONCERNING THE OWNER TRUSTEE

     Section 7.1 Acceptance of Trusts and Duties. The Owner Trustee accepts the trusts
hereby created and agrees to perform its duties hereunder with respect to such trusts but only upon
the terms of this Agreement and subject to the terms and conditions of the Transaction Documents.
The Owner Trustee also agrees to disburse all moneys actually received by it constituting part of
the Owner Trust Estate upon the terms of the Transaction Documents and this Agreement. The Owner
Trustee shall not be answerable or accountable hereunder or under any Transaction Document under
any circumstances, except (i) for its own willful misconduct, bad faith or gross negligence or (ii)
in the case of the inaccuracy of any representation or warranty contained in Section 7.3 below
expressly made by Wilmington Trust Company. In particular, but not by way of limitation (and
subject to the exceptions set forth in the preceding sentence):

          (a)      the Owner Trustee shall not be liable for any error of judgment made by a responsible
officer of the Owner Trustee;

          (b)      the execution, delivery, authentication and performance by the Owner Trustee of this
Agreement will not require the authorization, consent or approval of, the giving of notice to, the
filing or registration with, or the taking of any other action with respect to, any governmental
authority or agency;

          (c)      no provision of this Agreement or any Transaction Document shall require the Owner Trustee
to expend or risk funds or otherwise incur any financial liability in the

20

 

performance of any of its rights or powers hereunder or under any Transaction Document if the
Owner Trustee shall have reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured or provided to it;

          (d)      under no circumstances shall the Owner Trustee be liable for indebtedness evidenced by or
arising under any of the Transaction Documents, including the principal of and interest on the
Class A Notes;

          (e)      the Owner Trustee shall not be responsible for or in respect of the validity or
sufficiency of this Agreement or for the due execution hereof by the Depositor or the Seller or for
the form, character, genuineness, sufficiency, value or validity of any of the Owner Trust Estate
or for or in respect of the validity or sufficiency of the Transaction Documents, other than the
execution and delivery of the Transferor Certificate, and the Owner Trustee shall in no event
assume or incur any liability, duty, or obligation to any Class A Noteholder or to any
Certificateholders, other than as expressly provided for herein and in the Transaction Documents;

          (f)      the Owner Trustee shall not be liable for the default or misconduct of the Seller, the
Depositor, the Indenture Trustee or the Servicer under any of the Transaction Documents or
otherwise and the Owner Trustee shall have no obligation or liability to perform the obligations of
the Trust under this Agreement or the Transaction Documents that are required to be performed by
the Indenture Trustee under the Indenture, the Servicer under the Sale and Servicing Agreement, the
Administrator or the Bond Administrator under the Administration Agreement or the Certificate
Registrar or any Paying Agent hereunder;

          (g)      the Owner Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Agreement, or to institute, conduct or defend any litigation under this
Agreement or otherwise or in relation to this Agreement or any Transaction Document, at the
request, order or direction of the Transferor, unless such Transferor has offered to the Owner
Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities that
may be incurred by the Owner Trustee therein or thereby. The right of the Owner Trustee to perform
any discretionary act enumerated in this Agreement or in any Transaction Document shall not be
construed as a duty, and the Owner Trustee shall not be answerable for other than its gross
negligence or willful misconduct in the performance of any such act; and

          (h)      The Owner Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in accordance with the instructions of the Insurer, the Depositor or any
Certificateholder to the extent such action or direction is permitted by the Transaction Documents.

     Section 7.2 Furnishing of Documents. The Owner Trustee shall furnish (a) to the
Transferor promptly upon receipt of a written request therefor, duplicates or copies of all
reports, notices, requests, demands, certificates, financial statements and any other instruments
furnished to the Owner Trustee under the Transaction Documents and (b) to Class A Noteholders and
the Insurer promptly upon written request therefor, copies of the Sale and Servicing Agreement and
this Agreement.

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     Section 7.3 Representations and Warranties.

     Wilmington Trust Company hereby represents and warrants to the Depositor, for the benefit of
the Certificateholders and the Insurer, that:

          (a)      It is a banking corporation duly organized and validly existing in good standing under the
laws of the State of Delaware. It has all requisite corporate power and authority to execute,
deliver and perform its obligations under this Agreement;

          (b)      It has taken all corporate action necessary to authorize the execution and delivery by it
of this Agreement, and this Agreement has been executed and delivered by one of its officers who is
duly authorized to execute and deliver this Agreement on its behalf;

          (c)      Neither the execution nor the delivery by it of this Agreement nor the consummation by it
of the transactions contemplated hereby nor compliance by it with any of the terms or provisions
hereof will contravene any Federal or Delaware law, governmental rule or regulation governing the
banking or trust powers of the Owner Trustee or any judgment or order binding on it, or constitute
any default under its charter documents or by-laws or any indenture, mortgage, contract, agreement
or instrument to which it is a party or by which any of its properties may be bound;

          (d)      This Agreement has been duly authorized, executed and delivered by Wilmington Trust
Company and constitutes a valid, legal and binding obligation of Wilmington Trust Company,
enforceable against it in accordance with the terms hereof, subject to applicable bankruptcy,
insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’
rights generally and to general principles of equity, regardless of whether such enforcement is
considered in a proceeding in equity or at law;

          (e)      Wilmington Trust Company is not in default with respect to any order or decree of any
court or any order, regulation or demand of any federal, state, municipal or governmental agency,
which default might have consequences that would materially and adversely affect the condition
(financial or other) or operations of the Owner Trustee or its properties or might have
consequences that would materially adversely affect its performance hereunder; and

          (f)      No litigation is pending or, to the best of Wilmington Trust Company’s knowledge,
threatened against Wilmington Trust Company which would prohibit its entering into this Agreement
or performing its obligations under this Agreement.

     Section 7.4 Reliance; Advice of Counsel.

          (a)      The Owner Trustee shall incur no liability to anyone in acting upon any signature,
instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond, or
other document or paper believed by it to be genuine and believed by it to be signed by the proper
party or parties. The Owner Trustee may accept a certified copy of a resolution of the board of
directors or other governing body of any corporate party as conclusive evidence that

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such resolution has been duly adopted by such body and that the same is in full force and
effect. As to any fact or matter the method of the determination of which is not specifically
prescribed herein, the Owner Trustee may for all purposes hereof rely on a certificate, signed by
the president or any vice president or by the treasurer or other authorized officer of the relevant
party, as to such fact or matter and such certificate shall constitute full protection to the Owner
Trustee for any action taken or omitted to be taken by it in good faith in reliance thereon.

          (b)      In the exercise or administration of the trusts hereunder and in the performance of its
duties and obligations under this Agreement or the Transaction Documents, the Owner Trustee (i) may
act directly or through its agents or attorneys pursuant to agreements entered into with any of
them, and the Owner Trustee shall not be liable for the conduct or misconduct of such agents or
attorneys if such agents or attorneys shall have been selected by the Owner Trustee with reasonable
care, and (ii) may consult with counsel, accountants and other skilled persons to be selected with
reasonable care and employed by it. The Owner Trustee shall not be liable for anything done,
suffered or omitted in good faith by it in accordance with the opinion or advice of any such
counsel, accountants or other such persons and not contrary to this Agreement or any Transaction
Document.

     Section 7.5 Not Acting in Individual Capacity. Except as provided in this Article
VII, in accepting the trusts hereby created, Wilmington Trust Company acts solely as Owner Trustee
hereunder and not in its individual capacity and all Persons having any claim against the Owner
Trustee by reason of the transactions contemplated by this Agreement or any Transaction Document
shall look only to the Owner Trust Estate for payment or satisfaction thereof.

     Section 7.6 Owner Trustee Not Liable for the Certificates or the Mortgage Loans. The
recitals contained herein and in the Certificates (other than the signature of the Owner Trustee on
the Certificates) shall be taken as the statements of the Depositor, and the Owner Trustee assumes
no responsibility for the correctness thereof. The Owner Trustee makes no representations as to
the validity or sufficiency of this Agreement, of any Transaction Document or of the Certificates
(other than the signature of the Owner Trustee on the Certificates and as specified in Section 7.3
hereof) or the Class A Notes, or of the Mortgage Loans or any related documents. The Owner Trustee
shall at no time have any responsibility or liability for or with respect to the legality, validity
and enforceability of the Mortgage Loans, or the perfection and priority of any security interest
created by the Mortgage Loans or the maintenance of any such perfection and priority, or for or
with respect to the sufficiency of the Owner Trust Estate or its ability to generate the payments
to be distributed to the Certificateholders under this Agreement or to the Class A Noteholders
under the Indenture, including, without limitation: the existence, condition and ownership of the
Mortgage Loans; the validity of the assignment of the Mortgage Loans to the Trust; the completeness
of the Mortgage Loans; the performance or enforcement of the Mortgage Loans; the compliance by the
Depositor, the Seller or the Servicer with any warranty or representation made under any
Transaction Document or in any related document or the accuracy of any such warranty or
representation or any action of the Depositor, the Seller, the Indenture Trustee, the Administrator
or the Servicer or any other party taken in the name of the Owner Trustee.

23

 

     Section 7.7 Owner Trustee May Own Certificates and the Class A Notes. The Owner
Trustee in its individual or any other capacity may become the owner or pledgee of the Certificates
or the Class A Notes and may deal with the Depositor, the Seller, the Seller, the Indenture
Trustee, the Administrator and the Servicer in banking transactions with the same rights as it
would have if it were not Owner Trustee.

     Section 7.8 Licenses. Upon written request, the Owner Trustee shall cooperate with
the Administrator in connection with the Administrator’s causing the Trust to use its best efforts
to obtain and maintain the effectiveness of any licenses required in connection with this Agreement
and the Transaction Documents and the transactions contemplated hereby and thereby until such time
as the Trust shall terminate in accordance with the terms hereof; provided, however, that the Owner
Trustee shall have no duty to obtain and maintain any such licenses.

ARTICLE VIII COMPENSATION OF OWNER TRUSTEE

     Section 8.1 Owner Trustee’s Fees and Expenses. Wilmington Trust Company shall receive
as compensation for its services hereunder such fees as have been separately agreed upon before the
date hereof between the Seller and the Owner Trustee, and the Owner Trustee shall be entitled to be
reimbursed by the Seller for its other reasonable expenses hereunder, including the reasonable
compensation, expenses and disbursements of such agents, representatives, experts and counsel as
the Owner Trustee may employ in connection with the exercise and performance of its rights and its
duties hereunder.

     Section 8.2 Indemnification. The Seller shall be liable as primary obligor for, and
shall indemnify the Owner Trustee (including in its individual capacity) and its successors,
assigns, agents, employees, officers, directors and servants (collectively, the “Indemnified
Parties”) from and against, any and all liabilities, obligations, losses, damages, taxes,
claims, actions and suits, and any and all reasonable costs, expenses and disbursements (including
reasonable legal fees and expenses) of any kind and nature whatsoever (collectively,
“Expenses”) which may at any time be imposed on, incurred by, or asserted against the Owner
Trustee or any Indemnified Party in any way relating to or arising out of this Agreement, the
Transaction Documents, the Owner Trust Estate, the administration of the Owner Trust Estate or the
action or inaction of the Owner Trustee hereunder, except only that the Seller shall not be liable
for or required to indemnify an Indemnified Party from and against Expenses arising or resulting
from any of the matters described in the third sentence of Section 7.1 hereof. The indemnities
contained in this Section 8.2 shall survive the resignation or termination of the Owner Trustee or
the termination of this Agreement. In the event of any claim, action or proceeding for which
indemnity will be sought pursuant to this Section 8.2, the Owner Trustee’s choice of legal counsel
shall be subject to the approval of the Seller, which approval shall not be unreasonably withheld.

     Section 8.3 Payments to the Owner Trustee. Any amounts paid to the Owner Trustee
pursuant to this Article VIII shall be deemed not to be a part of the Owner Trust Estate
immediately after such payment.

24

 

ARTICLE IX TERMINATION OF TRUST AGREEMENT

     Section 9.1 Termination of Trust Agreement.

          (a)      This Agreement (other than Article VIII) and the Trust shall terminate pursuant to the
Statutory Trust Act and be of no further force or effect upon the satisfaction and discharge of the
Indenture pursuant to Section 4.1 of the Indenture and the termination of the Sale and Servicing
Agreement. The bankruptcy, liquidation, dissolution, death or incapacity of the Transferor shall
not (x) operate to terminate this Agreement or the Trust, nor (y) entitle such Transferor’s legal
representatives or heirs to claim an accounting or to take any action or proceeding in any court
for a partition or winding-up of all or any part of the Trust or Owner Trust Estate nor (z)
otherwise affect the rights, obligations and liabilities of the parties hereto.

          (b)      The Class A Notes and the Certificates shall be subject to an early redemption or
termination at the option of the Servicer in the manner and subject to the provisions of Section
8.01 of the Sale and Servicing Agreement.

          (c)      Except as provided in Sections 9.1(a) and (b) above, none of the Depositor, the Insurer,
the Administrator, or the Transferor shall be entitled to revoke or terminate the Trust.

          (d)      Notice of any termination of the Trust, specifying the Payment Date upon which the
Certificateholders shall surrender the Certificates to the Paying Agent for payment of the final
distributions and cancellation, shall be given by the Certificate Registrar to the
Certificateholders mailed within five Business Days of receipt by the Certificate Registrar of
notice of such termination pursuant to (a) or (b) above, which notice given by the Certificate
Registrar shall state (i) the Payment Date upon or with respect to which final payment of the
Certificates shall be made upon presentation and surrender of the Certificates at the office of the
Paying Agent therein designated, (ii) the amount of any such final payment and (iii) that the
Record Date otherwise applicable to such Payment Date is not applicable and payments being made
only upon submission of the Certificates at the office of the Paying Agent therein specified. The
Certificate Registrar shall give such notice to the Owner Trustee and the Paying Agent at the time
such notice is given to the Certificateholders. Upon presentation of such submission of a claim
for and acknowledgment of final distribution under the Certificates, the Paying Agent shall cause
to be distributed to the Certificateholders amounts distributable on such Payment Date pursuant to
Section 5.01 of the Sale and Servicing Agreement.

     In the event that any Certificateholder shall not have submitted its Certificate for
cancellation within six months after the date specified in the above-mentioned written notice, the
Certificate Registrar shall give a second written notice to the Certificateholder with respect
thereto. If within one year after such second notice the Certificateholder shall not have
submitted its Certificate for cancellation, the Certificate Registrar may take appropriate steps,
or may appoint an agent to take appropriate steps, to contact such Certificateholder concerning the
final distribution, and the cost thereof shall be paid out of the funds and other assets that shall
remain subject to this Agreement.

25

 

     Upon the termination of the Trust pursuant to this Article IX, and upon the surrender of the
Transferor Certificate, the Owner Trustee shall sell, assign and convey to the holder of the
Transferor Interest or its designee, without recourse, representation or warranty, all right, title
and interest of the Trust in the Trust Estate, whether then existing or thereafter created, all
moneys due or to become due and all amounts received with respect thereto and all proceeds thereof,
except for amounts held by the Indenture Trustee pursuant to Section 8.01(e) of the Sale and
Servicing Agreement. The Owner Trustee shall execute and deliver such instruments of transfer and
assignment, in each case without recourse, as shall be reasonably requested by the holder of the
Transferor Interest to vest in the holder of the Transferor Interest or its designee all right,
title and interest which the Trust had in the Trust Estate.

          (e)      Upon the winding up of the Trust and its termination, the Owner Trustee shall cause the
Certificate of Trust to be canceled by filing a certificate of cancellation with the Secretary of
State in accordance with the Statutory Trust Act.

ARTICLE X SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

     Section 10.1 Eligibility Requirements for Owner Trustee. The Owner Trustee shall at
all times be a corporation satisfying the provisions of the Statutory Trust Act; authorized to
exercise corporate powers; having a combined capital and surplus of at least $50,000,000 and
subject to supervision or examination by Federal or state authorities; having (or having a parent
which has) a long-term rating of at least “A” (or its equivalent) by each of Standard & Poor’s and
Moody’s (or as is otherwise acceptable to the Rating Agencies); and being acceptable to the
Insurer. If such corporation shall publish reports of condition at least annually, pursuant to law
or to the requirements of the aforesaid supervising or examining authority, then for the purpose of
this Section, the combined capital and surplus of such corporation 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 the Owner Trustee shall cease to be eligible in accordance with the provisions of
this Section 10.1, the Owner Trustee shall resign immediately in the manner and with the effect
specified in Section 10.2.

     Section 10.2 Resignation or Removal of Owner Trustee. The Owner Trustee may at any
time resign and be discharged from the trusts hereby created by giving written notice thereof to
the Trust, the Indenture Trustee, the Rating Agencies, the Insurer, the Certificateholders, the
Depositor and the Seller. Upon receiving such notice of resignation, the Seller shall promptly
appoint a successor Owner Trustee with the consent of the Insurer, which consent shall not be
unreasonably withheld, by written instrument, in duplicate, one copy of which instrument shall be
delivered to the resigning Owner Trustee and one copy to the successor Owner Trustee. If no
successor Owner Trustee shall have been so appointed and have accepted appointment within 30 days
after the giving of such notice of resignation, the resigning Owner Trustee or the Insurer may
petition any court of competent jurisdiction for the appointment of a successor Owner Trustee.

     If at any time the Owner Trustee shall cease to be eligible in accordance with the provisions
of Section 10.1 above and shall fail to resign after written request therefor by the

26

 

Seller, or if at any time the Owner Trustee shall be legally unable to act, or shall be
adjudged bankrupt or insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or liquidation, then the Seller
may, and, at the direction of the Insurer, shall, remove the Owner Trustee. If the Seller shall
remove the Owner Trustee under the authority of the immediately preceding sentence, (i) the Seller
shall promptly appoint a successor Owner Trustee acceptable to the Insurer by written instrument in
duplicate, one copy of which instrument shall be delivered to the outgoing Owner Trustee so removed
and one copy to the successor Owner Trustee and (ii) upon notice of such removal, the Seller shall
pay all fees owed to the outgoing Owner Trustee.

     Any resignation or removal of the Owner Trustee and appointment of a successor Owner Trustee
pursuant to any of the provisions of this Section 10.2 shall not become effective until acceptance
of appointment by the successor Owner Trustee pursuant to Section 10.3, written approval by the
Insurer and payment by the Seller of all fees and expenses owed to the outgoing Owner Trustee. The
Indenture Trustee shall provide notice of such resignation or removal of the Owner Trustee to each
of the Rating Agencies.

     Section 10.3 Successor Owner Trustee. Any successor Owner Trustee appointed pursuant
to Section 10.2 shall execute, acknowledge and deliver to the Indenture Trustee, the Insurer and to
its predecessor Owner Trustee an instrument accepting such appointment under this Agreement, and
thereupon the resignation or removal of the predecessor Owner Trustee shall become effective and
such successor Owner Trustee (if acceptable to the Insurer), without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties, and obligations of its
predecessor under this Agreement, with like effect as if originally named as Owner Trustee. The
predecessor Owner Trustee shall upon payment of its fees and expenses deliver to the successor
Owner Trustee all documents and statements and monies held by it under this Agreement; and the
Indenture Trustee and the predecessor Owner Trustee shall execute and deliver such instruments and
do such other things as may reasonably be required for fully and certainly vesting and confirming
in the successor Owner Trustee all such rights, powers, duties, and obligations.

     No successor Owner Trustee shall accept appointment as provided in this Section 10.3 unless at
the time of such acceptance such successor Owner Trustee shall be eligible pursuant to Section 10.1
above.

     Upon acceptance of appointment by a successor Owner Trustee pursuant to this Section 10.3, the
Indenture Trustee shall mail notice of the successor of such Owner Trustee to the Seller, the
Depositor, the Certificateholders, the Class A Noteholders, the Insurer and the Rating Agencies.
If the Indenture Trustee fails to mail such notice within 10 days after acceptance of appointment
by the successor Owner Trustee, the successor Owner Trustee shall notify the Indenture Trustee. If
the Indenture Trustee fails to mail such notice after notification by the successor Owner Trustee,
the Owner Trustee shall cause such notice to be mailed at the expense of the Indenture Trustee.

27

 

     Section 10.4 Merger or Consolidation of Owner Trustee. Any corporation into which the
Owner Trustee may be merged or converted or with which either may be consolidated or any
corporation resulting from any merger, conversion or consolidation to which the Owner Trustee shall
be a party, or any corporation succeeding to all or substantially all of the corporate trust
business of the Owner Trustee, shall be the successor of the Owner Trustee, as the case may be,
hereunder, provided such corporation shall be eligible pursuant to Section 10.1 above, without the
execution or filing of any instrument or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding; provided further that the Owner Trustee, shall
mail notice of such merger or consolidation to the Depositor, the Seller, the Indenture Trustee,
the Certificateholders, the Rating Agencies and the Insurer.

     Section 10.5 Appointment of Co-Owner Trustee or Separate Owner Trustee.
Notwithstanding any other provisions of this Agreement, at any time, for the purpose of meeting any
legal requirements of any jurisdiction in which any part of the Owner Trust Estate or any Mortgaged
Property may at the time be located, the Owner Trustee (with the consent of the Insurer, which
consent shall not be unreasonably withheld) shall have the power and shall execute and deliver all
instruments to appoint one or more Persons to act as co-owner trustee, jointly with the Owner
Trustee, or separate owner trustee or separate owner trustees, of all or any part of the Owner
Trust Estate, and to vest in such Person, in such capacity, such title to the Owner Trust Estate,
or any part thereof, and, subject to the other provisions of this Section, such powers, duties,
obligations, rights and trusts as the Owner Trustee may consider necessary or desirable. No
co-owner trustee or separate trustee under this Section 10.5 shall be required to meet the terms of
eligibility as a successor Owner Trustee pursuant to Section 10.1 above and no notice of the
appointment of any co-owner trustee or separate trustee shall be required pursuant to Section 10.3
above.

     Each separate trustee and co-owner trustee shall, to the extent permitted by law, be appointed
and act subject to the following provision and conditions:

     (i)      all rights, powers, duties and obligations conferred or imposed upon the Owner
Trustee shall be conferred upon and exercised or performed by the Owner Trustee and such
separate owner trustee or co-owner trustee jointly (it being understood that such separate
owner trustee or co-owner trustee is not authorized to act separately without the Owner
Trustee joining in such act), except to the extent that under any law of any jurisdiction in
which any particular act or acts are to be performed, the Owner 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 Owner Trust Estate or any portion thereof
in any such jurisdiction) shall be exercised and performed singly by such separate trustee
or co-owner trustee but solely at the direction of the Owner Trustee;

     (ii)      no owner trustee under this Agreement shall be personally liable by reason of any
act or omission of any other owner trustee under this Agreement; and

     (iii)      the Owner Trustee may at any time accept the resignation of or remove any
separate trustee or co-owner trustee.

28

 

     Any notice, request or other writing given to the Owner Trustee shall be deemed to have been
given to the separate trustees and co-owner trustees, as if given to each of them. Every
instrument appointing any separate owner trustee or co-owner trustee, other than this Agreement,
shall refer to this Agreement and to the conditions of this Article X. Each separate trustee and
co-owner trustee, upon its acceptance of appointment, shall be vested with the estates specified in
its instrument of appointment, either jointly with the Owner 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 Owner Trustee. Each such instrument shall be filed with the Owner Trustee.

     Any separate trustee or co-owner trustee may at any time appoint the Owner Trustee as 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. If any owner
trustee or co-owner trustee 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 Owner
Trustee, to the extent permitted by law, without the appointment of a new or successor trustee.

ARTICLE XI MISCELLANEOUS

     Section 11.1 Supplements and Amendments. This Agreement may be amended by the
Depositor, the Seller, the Owner Trustee, the Certificate Registrar and the Paying Agent with prior
written notice to the Rating Agencies and the Indenture Trustee and with the consent of the Insurer
(which consent shall not be unreasonably withheld), but without the consent of any of the Class A
Noteholders, the Certificateholders or the Indenture Trustee, to cure any ambiguity, to correct or
supplement any provisions in this Agreement or for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions in this Agreement or of modifying in
any manner the rights of the Class A Noteholders or the Certificateholders; provided, however, that
such action shall not adversely affect in any material respect the interests of any Class A
Noteholder, any Certificateholder or the Insurer. An amendment described above shall be deemed not
to adversely affect in any material respect the interests of any Class A Noteholder, any
Certificateholder or the Insurer if either (i) an Opinion of Counsel is obtained to such effect, or
(ii) the party requesting the amendment satisfies the Rating Agency Condition (as defined in the
Indenture) with respect to such amendment.

     This Agreement may also be amended from time to time by the Seller, the Depositor, the
Certificate Registrar, the Paying Agent and the Owner Trustee, with the prior written consent of
the Rating Agencies, the Insurer and the Indenture Trustee, the Class A Noteholders evidencing more
than 50% of the Outstanding Amount in the Class A Notes and the Transferor, 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 Class A Noteholders or the Transferor;
provided, however, that no such amendment shall (a) increase or reduce in any manner the amount of,
or accelerate or delay the timing of, collections of payments on the Mortgage Loans or
distributions that shall be required to be made for the benefit of the Class A Noteholders or the
Certificateholders or (b) reduce the aforesaid Outstanding Amount required to consent to any such
amendment, without the consent of the holders of all the outstanding Class A Notes and the
Certificateholders. The Depositor shall join in any such

29

 

amendment approved as provided in the preceding sentence so long as such amendment is not
adverse to the interests of the Depositor.

     Promptly after the execution of any such amendment, the Owner Trustee shall furnish written
notification of the substance of such amendment to the Indenture Trustee, the Insurer and each of
the Rating Agencies.

     It shall not be necessary for the consent of the Certificateholders, the Class A Noteholders
or the Indenture Trustee pursuant to this Section 11.1 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 any other consents of the Transferor or the
Certificateholders provided for in this Agreement or in any other Transaction Document) and of
evidencing the authorization of the execution thereof by the Transferor or the Certificateholders
and the Class A Noteholders shall be subject to such reasonable requirements as the Owner Trustee
may prescribe.

     Promptly after the execution of any amendment to the Certificate of Trust, the Owner Trustee
shall cause the filing of such amendment with the Secretary of State of the State of Delaware.

     Prior to the execution of any amendment to this Agreement or the Certificate of Trust, the
Owner Trustee and the Paying Agent shall be entitled to receive and rely upon an Opinion of Counsel
stating that the execution of such amendment is authorized or permitted by this Agreement and that
all conditions precedent to such execution and delivery have been satisfied. The Owner Trustee
may, but shall not be obligated to, enter into any such amendment which affects the Owner Trustee’s
own rights, duties or immunities under this Agreement or otherwise.

     Section 11.2 No Legal Title to Owner Trust Estate in Transferor or Certificateholders.
Neither the Transferor nor any other Certificateholder shall have legal title to any part of the
Owner Trust Estate. The Certificateholders shall be entitled to receive distributions with respect
to their undivided ownership interests therein only in accordance with Articles V and IX herein.
No transfer, by operation of law or otherwise, of any right, title, or interest of the Transferor
to and in its Transferor Interest, or any other Certificateholder to and in its Certificate, shall
operate to terminate this Agreement or the trusts hereunder or entitle any transferee to an
accounting or to the transfer to it of legal title to any part of the Owner Trust Estate.

     Section 11.3 Limitations on Rights of Others. The provisions of this Agreement are
solely for the benefit of the Owner Trustee, the Seller, the Trust, the Insurer, the
Certificateholder, the Depositor and, to the extent expressly provided herein, the Indenture
Trustee, the Insurer and the Class A Noteholders, and nothing in this Agreement, whether express or
implied, shall be construed to give to any other Person any legal or equitable right, remedy or
claim in the Owner Trust Estate or under or in respect of this Agreement or any covenants,
conditions or provisions contained herein.

     Section 11.4 Notices. All demands, notices and communications hereunder shall be in
writing and shall be deemed to have been duly given if personally delivered at or mailed by

30

 

overnight mail, certified mail or registered mail, postage prepaid, to: (i) in the case of
the Seller or the Depositor, 155 North Lake Avenue, Pasadena, California 91101, Attention:
Treasurer, (ii) in the case of the Owner Trustee, Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration, (iii) in the case of
the Transferor or any other Certificateholder, as set forth in the Certificate Register, and (iv)
in the case of the Insurer, as set forth in the Insurance and Indemnity Agreement. Any such
notices shall be deemed to be effective with respect to any party hereto upon the receipt of such
notice by such party.

     Section 11.5 Severability. Any provision of this Agreement that 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 11.6 Separate Counterparts. This Agreement may be executed by the parties
hereto in separate counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall together constitute but one and the same instrument.

     Section 11.7 Successors and Assigns. All covenants and agreements contained herein
shall be binding upon, and inure to the benefit of the Seller, the Depositor, the Owner Trustee,
the Insurer and its successors and each Certificateholder and their successors and permitted
assigns, all as herein provided. Any request, notice, direction, consent, waiver or other
instrument or action by any Certificateholder shall bind the successors and assigns of such
Certificateholder.

     Section 11.8 No Petition. To the fullest extent permitted by applicable law, the
Owner Trustee and the Seller, by entering into this Agreement, each Certificateholder, by accepting
its Certificate, the Insurer, the Indenture Trustee and each Class A Noteholder by accepting the
benefits of this Agreement, hereby covenant and agree that they will not at any time institute
against the Seller, the Transferor, the Depositor or the Trust, or join in any institution against
the Seller, the Transferor, the Depositor or the Trust of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under any United States
Federal or state bankruptcy law.

     Section 11.9 [Reserved].

     Section 11.10 No Recourse. Each Certificateholder by accepting its Certificate
acknowledges that such Certificate represents a beneficial interest in the assets of the Trust only
and does not represent an interest in or an obligation of the Servicer, the Seller, the
Administrator, the Depositor, the Owner Trustee or any Affiliate thereof and no recourse may be had
against such parties or their assets, except as may be expressly set forth or contemplated in this
Agreement, the Transferor Interest or the Transaction Documents.

31

 

     Section 11.11 Headings. The headings of the various Articles and Sections herein are
for convenience of reference only and shall not define or limit any of the terms or provisions
hereof.

     Section 11.12 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW
PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
IN ACCORDANCE WITH SUCH LAWS.

     Section 11.13 [Reserved].

     Section Section 11.14 Third Party Beneficiary.

     The parties hereto acknowledge that the Insurer is an express third party beneficiary hereof
entitled to enforce the provisions hereof as if it were actually a party hereto. Nothing in this
Section 11.14 however shall be construed to mitigate in any way, the fiduciary responsibilities of
the Owner Trustee to the beneficiaries of the Trust.

32

 

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

	 	 	 	 	 
	 	WILMINGTON TRUST COMPANY,

as Owner Trustee

 	 
	 	By:  	/s/ Janel R. Havrilla
 	 
	 	 	Name:  	Janel R. Havrilla 	 
	 	 	Title:  	Financial Services Officer 	 
	 
	 	INDYMAC ABS, INC.,

as Depositor

 	 
	 	By:  	/s/ Andy Sciandra
 	 
	 	 	Name:  	Andy Sciandra 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	INDYMAC BANK, F.S.B.,

as Seller

 	 
	 	By:  	/s/ Andy Sciandra
 	 
	 	 	Name:  	Andy Sciandra 	 
	 	 	Title:  	Senior Vice President 	 
	 

S-1

 

	 	 	 	 	 
	 	Acknowledged and Agreed:

DEUTSCHE BANK NATIONAL TRUST COMPANY,

as Note Registrar and Paying Agent

 	 
	 	By:  	/s/ Brent Hoyler
 	 
	 	 	Name:  	Brent Hoyler 	 
	 	 	Title:  	Associate 	 
	 
	 	 	 
	 	By:  	                      /s/ John Ingham
 	 
	 	 	Name:  	John Ingham 	 
	 	 	Title:  	Associate 	 

S-2

 

	 	 	 	 	 

EXHIBIT A

CERTIFICATE OF TRUST OF

INDYMAC RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1

     THIS Certificate of Trust of INDYMAC RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1 (the
“Trust”), is being duly executed and filed by Wilmington Trust Company, a Delaware banking
corporation, as trustee, to form a business trust under the Delaware Statutory Trust Act (12
Del. Code, § 3801 et seq.) (the “Act”).

     1. Name. The name of the statutory trust formed hereby is INDYMAC RESIDENTIAL
ASSET-BACKED TRUST, SERIES 2004-LH1.

     2. Delaware Trustee. The name and business address of the trustee of the Trust in the
State of Delaware is Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration Department.

     IN WITNESS WHEREOF, the undersigned, being the sole trustee of the Trust, has executed this
Certificate of Trust in accordance with Section 3811(a) of the Act.

	 	 	 	 	 
	 	WILMINGTON TRUST COMPANY, not in its

individual capacity but solely as Owner

Trustee under a Trust Agreement dated as of

December 14, 2004.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

A-1

 

EXHIBIT B

TRANSFER CERTIFICATE

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-0001

Attention: Corporate Trust Administration

Deutsche Bank National Trust Company

1761 East Saint Andrew Place

Santa Ana, California 92705-4934

Attn: Trust Administration—IN04H2

		
	Re: 	Amended and Restated Trust Agreement, dated as of
December 22, 2004, among IndyMac Bank, F.S.B., as
Seller, IndyMac ABS, Inc., as Depositor, Deutsche
Bank National Trust Company, as Certificate
Registrar and Paying Agent, and Wilmington Trust
Company as Owner Trustee; IndyMac Residential
Asset-Backed Trust, Series 2004-LH1, IndyMac
Residential Asset-Backed Notes, Series 2004-LH1

Ladies and Gentlemen:

          The undersigned (the “Transferee”) has agreed to purchase from ___(the
“Transferor”) the Transferor Interest:

          A. Rule 144A “Qualified Institutional Buyers” should complete this section

          I. The Transferee is (check one):

	 	 	 
	___

	 	(i) An insurance company, as defined in Section 2(13) of the
Securities Act of 1933, as amended (the “Securities Act”), (ii) an investment
company registered under the Investment Company Act of 1940, as amended (the
“Investment Company Act”), (iii) a business development company as defined in
Section 2(a)(48) of the Securities Act, (iv) a Small Business Investment
Company licensed by the U.S. Small Business Administration under Section 301(c)
or (d) of the Small Business Investment Act of 1958, (v) a plan established and
maintained by a state, its political subdivisions, or any agency or
instrumentality of a state or its political subdivisions, for the benefit of
its employees, (vi) an employee benefit plan within the meaning of Title I of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
(vii) a business development company as defined in Section 202(a)(22) of the
Investment Advisors Act of 1940, (viii) an organization described in Section
501(c)(3) of the Internal Revenue Code, corporation (other than a bank as
defined in Section 3(a)(2) of the Securities Act or a savings and loan
association or

B-1

 

	 	 	 
	

	 	other institution referenced in Section 3(a)(2) of the Securities Act or a
foreign bank or savings and loan association or equivalent institution),
partnership, or Massachusetts or similar business trust; or (ix) an
investment advisor registered under the Investment Advisors Act of 1940,
which, for each of (i) through (ix), owns and invests on a discretionary
basis at least $100 million in securities other than securities of issuers
affiliated with the Transferee, securities issued or guaranteed by the
United States or a person controlled or supervised by and acting as an
instrumentality of the government of the United States pursuant to authority
granted by the Congress of the United States, bank deposit notes and
certificates of deposit, loan participations, repurchase agreements,
securities owned but subject to a repurchase agreement, and currency,
interest rate and commodity swaps (collectively, “Excluded Securities”);
	 
	 	 
	___

	 	a dealer registered pursuant to Section 15 of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) that in the aggregate
owns and invests on a discretionary basis at least $10 million of securities
other than Excluded Securities and securities constituting the whole or part of
an unsold allotment to, or subscription by, Transferee as a participant in a
public offering;
	 
	 
___

	 	an investment company registered under the Investment Company
Act that is part of a family of investment companies (as defined in Rule 144A
of the Securities and Exchange Commission) which own in the aggregate at least
$100 million in securities other than Excluded Securities and securities of
issuers that are part of such family of investment companies;
	 
	 	 
	___

	 	an entity, all of the equity owners of which are entities
described in this Paragraph A(I);
	 
	 	 
	___

	 	a bank as defined in Section 3(a)(2) of the Securities Act, any
savings and loan association or other institution as referenced in Section
3(a)(5)(A) of the Securities Act, or any foreign bank or savings and loan
association or equivalent institution that in the aggregate owns and invests on
a discretionary basis at least $100 million in securities other than Excluded
Securities and has an audited net worth of at least $25 million as demonstrated
in its latest annual financial statements, as of a date not more than (i) 16
months preceding the date of transfer of the Transferor Interest to the
Transferee in the case of a U.S. Bank National Association, and (ii) not more
than 18 months preceding such date in the case of a foreign bank or savings
association or equivalent institution.

          II. The Transferee is acquiring such Transferor Interest solely for its own account, for the
account of one or more others, all of which are “Qualified Institutional Buyers” within the meaning
of Rule 144A, or in its capacity as a dealer registered pursuant to Section 15 of the Exchange Act
acting in a riskless principal transaction on behalf of a “Qualified Institutional Buyer”. The
Transferee is not acquiring such Transferor Interest with a view to or

B-2

 

for the resale, distribution, subdivision or fractionalization thereof which would require
registration of the Transferor Interest under the Securities Act.

          B. “Accredited Investors” should complete this Section

          I. The Transferee is (check one):

	 	 	 
	___

	 	a bank within the meaning of Section 3(a)(2) of the Securities
Act;
	 
	 	 
	___

	 	a savings and loan association or other institution defined in
Section 3(a)(5) of the Securities Act;
	 
	 	 
	___

	 	a broker or dealer registered pursuant to the Exchange Act;
	 
	 	 
	___

	 	an insurance company within the meaning of Section 2(13) of the
Securities Act;
	 
	 	 
	___

	 	an investment company registered under the Investment Company
Act;
	 
	 	 
	___

	 	an employee benefit plan within the meaning of Title I of
ERISA, which has total assets in excess of $5,000,000;
	 
	 	 
	___

	 	another entity which is an “accredited investor” within the
meaning of paragraph (fill in) of subsection (a) of Rule 501 of the
Securities and Exchange Commission.

          II. The Transferee is acquiring such Transferor Interest solely for its own account, for
investment, and not with a view to or for the resale, distribution, subdivision or
fractionalization thereof which would require registration of the Transferor Interest under the
Securities Act.

          C. If the Transferee is unable to complete one of paragraph A(I) or paragraph B(I) above, the
Transferee must furnish an opinion in form and substance satisfactory to the Indenture Trustee of
counsel satisfactory to the Indenture Trustee to the effect that such purchase will not violate any
applicable federal or state securities laws.

          D. The Transferee represents that it is not (A) an “employee benefit plan” within the meaning
of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
whether or not subject to the provisions of Title I of ERISA, or (B) a “plan” described in Section
4975(e)(1) of the Code (any such plan or employee benefit plan, a “Plan”) or (C) any entity whose
underlying assets include plan assets by reason of a Plan’s investment in the entity and is not
directly or indirectly purchasing such Transferor Interest on behalf of, as investment manager of,
as named fiduciary of, as trustee of, or with assets of a Plan.

B-3

 

               (iii)      the Transferee is an “accredited investor” as defined in Rule 501(a) of Regulation D
pursuant to the Securities Act.

Very truly yours,

[NAME OF PURCHASER]

By: ___________________________________________

Title: __________________________________________

Dated:

THE FOREGOING IS ACKNOWLEDGED THIS ____ DAY OF __________, 20__.

[NAME OF SELLER]

By:

Title:

B-4

 

EXHIBIT C

FORM OF TRANSFEROR CERTIFICATE

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS IT IS
REGISTERED PURSUANT TO THE SECURITIES ACT OF 1933 AND THE SECURITIES LAWS OF ANY STATE OR IS SOLD
OR TRANSFERRED IN TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933
AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH SECTION 3.4 OF THE INDYMAC
RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1, TRUST AGREEMENT.

Neither this certificate nor any interest in it may be transferred unless the transferee delivers
to the Owner Trustee a representation letter to the effect that the transferee is not an employee
benefit plan (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”)) whether or not subject to the provisions of Title I of ERISA, a plan described
in Section 4975(e)(1) of the Code (any such plan or employee benefit plan, a “Plan”) or any entity
whose underlying assets include plan assets by reason of a Plan’s investment in the entity and is
not directly or indirectly purchasing such Transferor Interest on behalf of, as investment manager
of, as named fiduciary of, as trustee of, or with assets of a Plan. Notwithstanding anything else
to the contrary herein, any purported transfer of this certificate to or on behalf of a Plan
without the representation letter satisfactory to the Owner Trustee as described above shall be
void.

THIS TRANSFEROR CERTIFICATE HAS NO PRINCIPAL BALANCE, DOES NOT BEAR INTEREST AND WILL NOT RECEIVE
ANY DISTRIBUTIONS EXCEPT AS PROVIDED IN THE AGREEMENT REFERRED TO HEREIN.

C-1

 

	 	 	 
	Closing Date

	 	: December 22, 2004
	Percentage of Transferor Interest

	 	: 100%
	Certificate No.

	 	: OTC-1
	First Payment Date

	 	: January 27, 2005

INDYMAC RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1

Transferor Certificate

evidencing a percentage interest in the Transferor Interest

evidencing an undivided beneficial interest in the assets of a trust

consisting primarily of a class of asset-backed securities

secured by a pool of home equity line of credit loans and residential lot loans sold by

IndyMac Bank, F.S.B.

     This Transferor Certificate does not represent an obligation of or interest in IndyMac ABS,
Inc., (the “Depositor”), IndyMac Bank, F.S.B. (the “Seller”) or Wilmington Trust Company (the
“Owner Trustee”) or any of their affiliates. Neither this Transferor Certificate nor the
underlying Owner Trust Estate is guaranteed or insured by any governmental agency or
instrumentality.

     This certifies that [___] is the registered owner of
the Transferor Interest evidenced by this Transferor Certificate in the entire interest in the
IndyMac Residential Asset-Backed Trust, Series 2004-LH1, consisting primarily of certain mortgage
loans (the “Mortgage Loans”) transferred by the Depositor not represented by the Class B
Certificates and the Class O Certificates. The IndyMac Residential Asset-Backed Trust, Series
2004-LH1 was created pursuant to a Trust Agreement, dated as of December 1, 2004 among the Seller,
the Depositor and the Owner Trustee, as amended and restated by an Amended and Restated Trust
Agreement, dated as of December 22, 2004 (the “Agreement”), a summary of some of the pertinent
provisions of which follows. Capitalized terms used in this Transferor Certificate without
definition have the meanings assigned in the Agreement. This Transferor Certificate is issued
under and is subject to the Agreement. The holder of this Transferor Certificate by virtue of the
acceptance of it agrees to be bound by the Agreement.

     This Transferor Certificate evidences the Transferor Interest from the duly authorized issue
of the Transferor Certificate designated as IndyMac Residential Asset-Backed Trust, Series 2004-LH1
Transferor Interest, representing, to the extent specified in the Agreement, an undivided interest
in (i) the Mortgage Loans and all distributions thereon after the Closing Date; (ii) such other
assets as shall from time to time be identified as on deposit in the Payment Account, the Auction
Proceeds Account and the Revolving Period Funding Account in accordance with this Agreement; (iii)
the Depositor’s rights under the Mortgage Loan Purchase Agreement; (iv) any proceeds of any of the
foregoing (i) through (iii); and (v) all other assets included or to be included in the Trust for
the benefit of Class A Noteholders and the Insurer (collectively, the “Trust Estate”).

C-2

 

     A first priority security interest in all the Trust Estate has been granted to the Indenture
Trustee under the Indenture.

     The Transferor, by its acceptance of this Transferor Certificate, agrees that it will look
solely to the funds available under the Agreement for payment of this Transferor Certificate and
that the Owner Trustee in its individual capacity is not personally liable to the Transferor for
any amount payable under this Transferor Certificate or the Agreement or, except as expressly
provided in the Agreement, subject to any liability under the Agreement.

     This Transferor Certificate does not purport to summarize the Agreement and reference is made
to the Agreement for the interests, rights, and limitations of rights and obligations evidenced by
this Transferor Certificate, and the rights and obligations of the Owner Trustee.

     The Agreement may be amended by the Depositor, the Seller, the Certificate Registrar, the
Paying Agent and the Owner Trustee with prior written notice to the Rating Agencies and the
Indenture Trustee and with the consent of the Insurer (which consent shall not be unreasonably
withheld), but without the consent of any of the Class A Noteholders, the Transferor or the
Indenture Trustee, to cure any ambiguity, to correct or supplement any provisions in this Agreement
or for the purpose of adding any provisions to or changing in any manner or eliminating any of the
provisions in this Agreement or of modifying in any manner the rights of the Class A Noteholders or
the Transferor; provided, however, that such action shall not adversely affect in any material
respect the interests of any Class A Noteholder, the Transferor or the Insurer. The Agreement may
also be amended from time to time by the Seller, the Depositor, the Certificate Registrar, the
Paying Agent and the Owner Trustee, with the prior written consent of the Rating Agencies, the
Insurer and the Indenture Trustee, the Class A Noteholders evidencing more than 50% of the
Outstanding Amount in the Class A Notes and more than 50% of the Percentage Interests of each Class
of Certificates and the Transferor, 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 Class A Noteholders, the Certificateholders or the Transferor, subject to the
limitations set forth in the Agreement.

     Neither this Transferor Certificate nor any legal or beneficial interest in it may be,
directly or indirectly, purchased, transferred, sold, pledged, assigned, or otherwise disposed of,
and any proposed transferee of this Transferor Certificate shall not become its registered holder,
unless the conditions in Section 3.4 of the Agreement are satisfied.

     No service charge shall be made for the registration of transfer or exchange of this
Transferor Certificate, but the Owner Trustee and 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
transfer or exchange of this Transferor Certificate.

     In connection with any transfer of this Transferor Certificate, the holder transferring this
Transferor Certificate shall indemnify the Trust against any liability that may result if the
transfer is not so exempt or is not made in accordance with any federal and state laws.

     The Owner Trustee, the Certificate Registrar, and any Paying Agent will treat the person in
whose name this Transferor Certificate is registered in the Certificate Register as its owner for

C-3

 

the purpose of receiving distributions pursuant to Section 5.2 of the Agreement and for all

other purposes whatsoever, and none of the Owner Trustee, the Certificate Registrar, and any Paying
Agent shall be bound by any notice to the contrary.

     The obligations created by the Agreement will terminate and this Transferor Certificate will
be retired and the Trust will be dissolved when the final distribution from the Trust Estate is
made resulting in the Trust having no further assets.

C-4

 

     Unless the certificate of authentication on this Transferor Certificate has been executed by
the Certificate Registrar by manual signature, this Transferor Certificate shall not be entitled to
any benefit under the Agreement, or be valid for any purpose.

Dated: December 22, 2004

	 	 	 	 	 	 	 
	 	 	INDYMAC RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1
	 
	 	 	 	 	 	 
	 	 	By:	 	WILMINGTON TRUST COMPANY,

not in its individual capacity but solely as

Owner Trustee
	 
	 	 	 	 	 	 
	

	 	 	 	By:	 	 
	

	 	 	 	 	 	

Certificate of Authentication:

This is the Transferor Certificate

referenced in the within-mentioned Agreement.

DEUTSCHE BANK NATIONAL TRUST COMPANY,

not in its individual capacity but solely as Certificate Registrar

		
	By: 	

Authorized Officer

C-5

 

EXHIBIT D-1

FORM OF CLASS B-1 CERTIFICATE

THE HOLDER OF THIS CERTIFICATE WILL BE ENTITLED TO CERTAIN DISTRIBUTIONS AS PROVIDED IN THE
AGREEMENT REFERRED TO HEREIN.

THIS CERTIFICATE IS SUBORDINATE IN RIGHT OF PAYMENT AS DESCRIBED IN A SALE AND SERVICING AGREEMENT
DATED AS OF DECEMBER 1, 2004 (THE “SALE AND SERVICING AGREEMENT”), AMONG INDYMAC ABS, INC., INDYMAC
RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1, INDYMAC BANK, F.S.B. AND DEUTSCHE BANK NATIONAL
TRUST COMPANY, AS INDENTURE TRUSTEE.

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES OR BLUE SKY LAWS OF ANY STATE IN THE UNITED
STATES OR ANY FOREIGN SECURITIES LAWS. BY ITS ACCEPTANCE OF THIS CERTIFICATE THE HOLDER OF THIS
CERTIFICATE IS DEEMED TO REPRESENT TO THE OWNER TRUSTEE AND THE CERTIFICATE REGISTRAR THAT IT IS
(A) A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT AND IS
ACQUIRING SUCH CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A
FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS), (B) AN
“ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT, OR (C) A PERSON INVOLVED
IN THE ORGANIZATION OR OPERATION OF THE TRUST OR AN AFFILIATE OF SUCH PERSON WITHIN THE MEANING OF
RULE 3a-7 OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “1940 ACT”).

NO SALE, PLEDGE OR OTHER TRANSFER OF THIS CERTIFICATE MAY BE MADE BY ANY PERSON UNLESS SUCH SALE,
PLEDGE OR OTHER TRANSFER IS MADE TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES AFTER DUE
INQUIRY IS (A) A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A), ACTING FOR ITS OWN
ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS
ALSO ARE QUALIFIED INSTITUTIONAL BUYERS) TO WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE OR TRANSFER
IS BEING MADE IN RELIANCE ON RULE 144A, (B) AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a)
UNDER THE SECURITIES ACT, OR (C) A PERSON INVOLVED IN THE ORGANIZATION OR OPERATION OF THE TRUST OR
AN AFFILIATE OF SUCH PERSON WITHIN THE MEANING OF RULE 3a-7 OF THE 1940 ACT AND (D) AND IS MADE
UNDER EXEMPTION FROM OR OTHERWISE IN COMPLIANCE WITH STATE SECURITIES LAWS.

D-1-1

 

EACH PURCHASER OF A CERTIFICATE WILL BE DEEMED TO REPRESENT THAT IT IS NOT (A) AN “EMPLOYEE BENEFIT
PLAN” WITHIN THE MEANING OF SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED (“ERISA”), WHETHER OR NOT SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, OR (B) A “PLAN”
DESCRIBED IN SECTION 4975(E)(1) OF THE CODE (ANY SUCH PLAN OR EMPLOYEE BENEFIT PLAN, A “PLAN”) OR
(C) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A PLAN’S INVESTMENT IN THE
ENTITY AND IS NOT DIRECTLY OR INDIRECTLY PURCHASING SUCH CERTIFICATE INTEREST ON BEHALF OF, AS
INVESTMENT MANAGER OF, AS NAMED FIDUCIARY OF, AS TRUSTEE OF, OR WITH ASSETS OF A PLAN.

D-1-2

 

	 	 	 
	Certificate No.

	 	: 1
	 
	 	 
	Cut-off Date

	 	: December 1, 2004
	 
	 	 
	First Distribution Date

	 	: January 27, 2005
	 
	 	 
	Initial Certificate Principal Balance of this
Certificate (“Denomination”)

	 	: $___
	 
	 	 
	Original Class Certificate Principal Balance of
this Class

	 	: $___
	 
	 	 
	Pass-Through Rate

	 	: ___
	 
	 	 
	CUSIP

	 	: 456606 GM 8
	 
	 	 
	Class

	 	: B-1
	 
	 	 
	Assumed Maturity Date

	 	: ___

D-1-3

 

INDYMAC RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1

CLASS B-1 CERTIFICATES

evidencing a Percentage Interest in the distributions allocable to the Certificates
of the above-referenced Class with respect to the Trust consisting of Mortgage Loans
transferred by

INDYMAC ABS, INC., as Depositor

     Principal and interest in respect of this Certificate is distributable as set forth in the
Agreement. Accordingly, the Certificate Principal Balance of this Class B-1 Certificate at any
time may be less than the Initial Certificate Principal Balance set forth on the face hereof, as
described herein. This Class B-1 Certificate does not evidence an obligation of, or an interest
in, and is not guaranteed by the Seller, the Depositor or the Owner Trustee or any of their
respective affiliates.

     This certifies that [___] is the registered owner of the Percentage
Interest evidenced by this Class B-1 Certificate (obtained by dividing the denomination of this
Class B-1 Certificate by the Original Class B-1 Certificate Principal Balance) in certain
distributions with respect to a Trust consisting primarily of the Mortgage Loans sold by IndyMac
ABS, Inc., as Depositor (the “Depositor”). The Trust was created pursuant to a Trust Agreement,
dated as of December 14, 2004 among the Seller, the Depositor and the Owner Trustee, as amended and
restated by an Amended and Restated Trust Agreement, dated as of December 22, 2004 (the
“Agreement”). To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement or, if not defined therein, in the Sale and Servicing Agreement.
This Class B-1 Certificate is issued under and is subject to the terms, provisions and conditions
of the Agreement, to which Agreement the Holder of this Class B-1 Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

     Reference is hereby made to the further provisions of this Class B-1 Certificate set forth on
the reverse hereof, which further provisions shall for all purposes have the same effect as if set
forth at this place.

     This Class B-1 Certificate shall not be entitled to any benefit under the Agreement or be
valid for any purpose unless manually countersigned by an authorized signatory of the Certificate
Registrar.

D-1-4

 

     IN WITNESS WHEREOF, the Owner Trustee on behalf of the Trust has caused this Certificate to be
duly executed.

Dated: December 22, 2004

	 	 	 	 	 	 	 
	 	 	INDYMAC RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1
	 
	 	 	 	 	 	 
	 	 	By:	 	WILMINGTON TRUST COMPANY,

not in its individual capacity but solely as

Owner Trustee
	 
	 	 	 	 	 	 
	

	 	 	 	By:	 	 
	

	 	 	 	 	 	

This is one of the Certificates

referenced in the within-mentioned Agreement.

DEUTSCHE BANK NATIONAL TRUST COMPANY,

not in its individual capacity but solely as Certificate Registrar

		
	By: 	

Name:

Title:

D-1-5

 

[Reverse]

INDYMAC RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1

     This Certificate is one of a duly authorized issue of Certificates designated as IndyMac
Residential Asset-Backed Trust, Series 2004-LH1, Class B-1 Certificates (herein collectively called
the “Certificates”), and representing a beneficial ownership interest in the Trust created by the
Agreement. The Certificates do not constitute obligations of or interests in the Depositor, the
Seller, the Owner Trustee or any of their respective Affiliates.

     The Certificateholder, by its acceptance of this Certificate, agrees that it will look solely
to the funds on deposit in the Payment Account for payment hereunder and that the Owner Trustee is
not liable to the Certificateholders for any amount payable under this Certificate or the Agreement
or, except as expressly provided in the Agreement, subject to any liability under the Agreement.
Amounts payable under this Certificate or the Agreement are not insured or guaranteed by any
governmental agency or instrumentality or by any other Person.

     This Certificate does not purport to summarize the Agreement or the Sale and Servicing
Agreement and reference is made to the Agreement and the Sale and Servicing Agreement, as
appropriate, for the interests, rights and limitations of rights, benefits, obligations and duties
evidenced thereby, and the rights, duties and immunities of the Owner Trustee.

     Pursuant to the terms of the Sale and Servicing Agreement, a distribution will be made on the
27th day of each month or, if such 27th day is not a Business Day then the first Business Day
following such 27th day (the “Payment Date”), commencing on the first Payment Date specified on the
face hereof, to the Person in whose name this Certificate is registered at the close of business on
the applicable Record Date with respect to a Book-Entry Certificate and at the last day of the
calendar month preceding the month in which the related Payment Date occurs, in an amount equal to
the product of the Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate belongs on such
Payment Date pursuant to the Agreement.

     Distributions on this Certificate shall be made by check or money order mailed to the address
of the person entitled thereto as it appears on the Certificate Register or, upon the written
request of a Certificateholder delivered to the Indenture Trustee at least five Business Days prior
to such Record Date, by wire transfer or otherwise, as set forth in the Sale and Servicing
Agreement. The final distribution on each Certificate will be made in like manner, but only upon
presentment and surrender of such Certificate at the office or agency of the Indenture Trustee
specified in the notice to Certificateholders of such final distribution.

     The Agreement may be amended by the Depositor, the Seller, the Certificate Registrar, the
Paying Agent and the Owner Trustee with prior written notice to the Rating Agencies and the
Indenture Trustee and with the consent of the Insurer (which consent shall not be unreasonably
withheld), but without the consent of any of the Class A Noteholders, the Certificateholders or the
Indenture Trustee, to cure any ambiguity, to correct or supplement any provisions in the Agreement
or for the purpose of adding any provisions to or changing in any manner or

D-1-6

 

eliminating any of the provisions in the Agreement or of modifying in any manner the rights of
the Class A Noteholders or the Certificateholders; provided, however, that such action shall not
adversely affect in any material respect the interests of any Class A Noteholder, any
Certificateholder or the Insurer. The Agreement may also be amended from time to time by the
Seller, the Depositor, the Certificate Registrar, the Paying Agent and the Owner Trustee, with the
prior written consent of the Rating Agencies, the Insurer and the Indenture Trustee, the Class A
Noteholders evidencing more than 50% of the Outstanding Amount in the Class A Notes and the
Transferor, for the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of the Agreement or of modifying in any manner the rights of the Class A
Noteholders or the Transferor, subject to the limitations set forth in the Agreement.

     As provided in the Agreement and subject to certain limitations therein set forth, the
transfer of this Class Certificate is registrable in the Certificate Register of the Certificate
Registrar upon surrender of this Certificate for registration of transfer at the office or agency
maintained by the Certificate Registrar accompanied by a written instrument of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed by the holder hereof
or such holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of
the same Class in authorized denominations and evidencing the same aggregate Percentage Interest in
the Trust will be issued to the designated transferee or transferees.

     The Certificates are issuable without coupons and will be registered and denominated as
specified in the Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of the same Class in
authorized denominations and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service charge will be made for any such registration of transfer or exchange, but the
Owner Trustee and the Certificate Registrar may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     The Servicer, the Seller, the Depositor, the Certificate Registrar, the Owner Trustee and any
agent thereof may treat the Person in whose name this Certificate is registered as the owner hereof
for all purposes, and none of the Servicer, the Seller, the Depositor, the Certificate Registrar,
the Owner Trustee or any agent shall be affected by any notice to the contrary.

     No transfer, sale, pledge or other disposition of this Certificate shall be made unless such
disposition is exempt from the registration requirements of the Securities Act of 1933, as amended
(the “Securities Act”), and any applicable state securities laws or is made in accordance with the
Securities Act and applicable state securities laws. No sale, pledge or other transfer of this
Certificate may be made by any person unless such sale, pledge or other transfer is made to a
person who the transferor reasonably believes after dues inquiry is (A) a “Qualified Institutional
Buyer” (as defined in Rule 144A under the Securities Act), acting for its own account (and not for
the account of others) or as a fiduciary or agent for others (which others also are Qualified
Institutional Buyers) to whom notice is given that the sale, pledge or transfer is being made in
reliance on Rule 144A, (B) an “Accredited Investor” as defined in Rule 501(a) under the Securities
Act, or (C) a person involved in the organization or operation of the Trust or an affiliate of such
person within the meaning of Rule 3a-7 of the Investment Company Act of

D-1-7

 

1940, as amended and (D) is made under exemption from or otherwise in compliance with state
securities laws. The Holder of this Certificate desiring to effect such transfer shall, and does
hereby agree to, indemnify the Trust against any liability that may result if the transfer is not
so exempt or is not made in accordance with such federal and state laws.

     The Servicer will have the right to purchase all of the Mortgage Loans and REO Properties and
thereby effect the early retirement of the Certificates, on the next succeeding Payment Date on
which the Class A Note Principal Balance is equal to or less than 10% of the Original Class A
Certificate Note Balance. The price paid upon any purchase described in the preceding sentence
shall be the price described in Section 8.01(a) the Sale and Servicing Agreement.

     This Certificate shall be construed in accordance with the laws of the State of Delaware,
without reference to its conflict of law provisions, and the obligations, rights and remedies of
the parties hereunder shall be determined in accordance with such laws.

     The recitals contained herein shall not be taken as statements of the Owner Trustee and
Certificate Registrar and the Owner Trustee and Certificate Registrar assume no responsibility
therefor.

D-1-8

 

ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

(Please print or typewrite name and address including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby authorizes the transfer of
registration of such Percentage Interest to assignee on the Certificate Register of the Trust.

     I (We) further direct the Certificate Registrar to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate to the following
address:

     

__________________________________________________________________________________________________________________________

Dated: _____________

	 	 	 
	

	 	_____________________________________

Signature by or on behalf of assignor
	

	 	_____________________________________

Signature Guaranteed
	

	 	
NOTICE: The signature to this assignment must
correspond with the name as written upon the face of
the within instrument in every particular, without
alteration or enlargement or any change whatsoever.

D-1-9

 

PAYMENT INSTRUCTIONS

     The assignee should include the following for purposes of payment:

Payments shall be made, by wire transfer or otherwise, in immediately available funds
to ___________________________________________

for the account of _____________________________________________________, or, if mailed by check, to _________________________________________________________________.

Applicable statements should be mailed to
__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

     This information is provided by ___________________________________________________________________________________________________,
the assignee named above, or _____________________________________________________________________,
as its agent.

D-1-10

 

EXHIBIT D-2

FORM OF CLASS B-2 CERTIFICATE

THE HOLDER OF THIS CERTIFICATE WILL BE ENTITLED TO CERTAIN DISTRIBUTIONS AS PROVIDED IN THE
AGREEMENT REFERRED TO HEREIN.

THIS CERTIFICATE IS SUBORDINATE IN RIGHT OF PAYMENT AS DESCRIBED IN A SALE AND SERVICING AGREEMENT
DATED AS OF DECEMBER 1, 2004 (THE “SALE AND SERVICING AGREEMENT”), AMONG INDYMAC ABS, INC., INDYMAC
RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1, INDYMAC BANK, F.S.B. AND DEUTSCHE BANK NATIONAL
TRUST COMPANY, AS INDENTURE TRUSTEE.

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES OR BLUE SKY LAWS OF ANY STATE IN THE UNITED
STATES OR ANY FOREIGN SECURITIES LAWS. BY ITS ACCEPTANCE OF THIS CERTIFICATE THE HOLDER OF THIS
CERTIFICATE IS DEEMED TO REPRESENT TO THE OWNER TRUSTEE AND THE CERTIFICATE REGISTRAR THAT IT IS
(A) A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT AND IS
ACQUIRING SUCH CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A
FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS), (B) AN
“ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT, OR (C) A PERSON INVOLVED
IN THE ORGANIZATION OR OPERATION OF THE TRUST OR AN AFFILIATE OF SUCH PERSON WITHIN THE MEANING OF
RULE 3a-7 OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “1940 ACT”).

NO SALE, PLEDGE OR OTHER TRANSFER OF THIS CERTIFICATE MAY BE MADE BY ANY PERSON UNLESS SUCH SALE,
PLEDGE OR OTHER TRANSFER IS MADE TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES AFTER DUE
INQUIRY IS (A) A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A), ACTING FOR ITS OWN
ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS
ALSO ARE QUALIFIED INSTITUTIONAL BUYERS) TO WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE OR TRANSFER
IS BEING MADE IN RELIANCE ON RULE 144A, (B) AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a)
UNDER THE SECURITIES ACT, OR (C) A PERSON INVOLVED IN THE ORGANIZATION OR OPERATION OF THE TRUST OR
AN AFFILIATE OF SUCH PERSON WITHIN THE MEANING OF RULE 3a-7 OF THE 1940 ACT AND (D) AND IS MADE
UNDER EXEMPTION FROM OR OTHERWISE IN COMPLIANCE WITH STATE SECURITIES LAWS.

D-2-1

 

EACH PURCHASER OF A CERTIFICATE WILL BE DEEMED TO REPRESENT THAT IT IS NOT (A) AN “EMPLOYEE BENEFIT
PLAN” WITHIN THE MEANING OF SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED (“ERISA”), WHETHER OR NOT SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, OR (B) A “PLAN”
DESCRIBED IN SECTION 4975(E)(1) OF THE CODE (ANY SUCH PLAN OR EMPLOYEE BENEFIT PLAN, A “PLAN”) OR
(C) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A PLAN’S INVESTMENT IN THE
ENTITY AND IS NOT DIRECTLY OR INDIRECTLY PURCHASING SUCH CERTIFICATE INTEREST ON BEHALF OF, AS
INVESTMENT MANAGER OF, AS NAMED FIDUCIARY OF, AS TRUSTEE OF, OR WITH ASSETS OF A PLAN.

D-2-2

 

	 	 	 	 	 	 
	Certificate No.

	 	:
	 	1	 
	 
	 	 	 	 	 	 
	Cut-off Date

	 	:
	 	December 1, 2004

	 
	 	 	 	 	 	 
	First Distribution Date

	 	:
	 	January 27, 2005

	 
	 	 	 	 	 	 
	Initial
Certificate Principal Balance of this Certificate (“Denomination”)

	 	:
	 	$____________	 
	 
	 	 	 	 	 	 
	Original Class Certificate

Principal Balance of this Class

	 	:
	 	$____________	 
	 
	 	 	 	 	 	 
	Pass-Through Rate

	 	:
	 	____________	 
	 
	 	 	 	 	 	 
	CUSIP

	 	:
	 	456606 GN 6

	 
	 	 	 	 	 	 
	Class

	 	:
	 	B-2	 
	 
	 	 	 	 	 	 
	Assumed Maturity Date

	 	:
	 	____________	 

D-2-3

 

INDYMAC RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1

CLASS B-2 CERTIFICATES

evidencing
a Percentage Interest in the distributions allocable to the
Certificates of the above-referenced Class with respect to the Trust consisting of Mortgage Loans transferred by

INDYMAC ABS, INC., as Depositor

     Principal and interest in respect of this Certificate is distributable as set forth in the
Agreement. Accordingly, the Certificate Principal Balance of this Class B-2 Certificate at any
time may be less than the Initial Certificate Principal Balance set forth on the face hereof, as
described herein. This Class B-2 Certificate does not evidence an obligation of, or an interest
in, and is not guaranteed by the Seller, the Depositor or the Owner Trustee or any of their
respective affiliates.

     This certifies that [_______________] is the registered owner of the Percentage
Interest evidenced by this Class B-2 Certificate (obtained by dividing the denomination of this
Class B-2 Certificate by the Original Class B-2 Certificate Principal Balance) in certain
distributions with respect to a Trust consisting primarily of the Mortgage Loans sold by IndyMac
ABS, Inc., as Depositor (the “Depositor”). The Trust was created pursuant to a Trust Agreement,
dated as of December 14, 2004 among the Seller, the Depositor and the Owner Trustee, as amended and
restated by an Amended and Restated Trust Agreement, dated as of December 22, 2004 (the
“Agreement”). To the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Agreement or, if not defined therein, in the Sale and Servicing Agreement.
This Class B-2 Certificate is issued under and is subject to the terms, provisions and conditions
of the Agreement, to which Agreement the Holder of this Class B-2 Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound.

     Reference is hereby made to the further provisions of this Class B-2 Certificate set forth on
the reverse hereof, which further provisions shall for all purposes have the same effect as if set
forth at this place.

     This Class B-2 Certificate shall not be entitled to any benefit under the Agreement or be
valid for any purpose unless manually countersigned by an authorized signatory of the Certificate
Registrar.

D-2-4

 

     IN WITNESS WHEREOF, the Owner Trustee on behalf of the Trust has caused this Certificate to be
duly executed.

Dated: December 22, 2004

	 	 	 	 	 
	 	INDYMAC RESIDENTIAL ASSET-BACKED
TRUST,
 SERIES
2004-LH1

 	 
	 	By:  	WILMINGTON TRUST COMPANY
 	 
	 	 	not in its individual capacity, but solely as 	 
	 	 	Owner Trustee 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

This is one of the Certificates

referenced in the within-mentioned Agreement.

DEUTSCHE BANK NATIONAL TRUST COMPANY,

not in its individual capacity but solely as Certificate Registrar

	 	 	 
	By:
	 	 
	

	 	 
	

	 	Name:
	

	 	Title:

D-2-5

 

[Reverse]

INDYMAC RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1

     This Certificate is one of a duly authorized issue of Certificates designated as IndyMac
Residential Asset-Backed Trust, Series 2004-LH1, Class B-2 Certificates (herein collectively called
the “Certificates”), and representing a beneficial ownership interest in the Trust created by the
Agreement. The Certificates do not constitute obligations of or interests in the Depositor, the
Seller, the Owner Trustee or any of their respective Affiliates.

     The Certificateholder, by its acceptance of this Certificate, agrees that it will look solely
to the funds on deposit in the Payment Account for payment hereunder and that the Owner Trustee is
not liable to the Certificateholders for any amount payable under this Certificate or the Agreement
or, except as expressly provided in the Agreement, subject to any liability under the Agreement.
Amounts payable under this Certificate or the Agreement are not insured or guaranteed by any
governmental agency or instrumentality or by any other Person.

     This Certificate does not purport to summarize the Agreement or the Sale and Servicing
Agreement and reference is made to the Agreement and the Sale and Servicing Agreement, as
appropriate, for the interests, rights and limitations of rights, benefits, obligations and duties
evidenced thereby, and the rights, duties and immunities of the Owner Trustee.

     Pursuant to the terms of the Sale and Servicing Agreement, a distribution will be made on the
27th day of each month or, if such 27th day is not a Business Day then the first Business Day
following such 27th day (the “Payment Date”), commencing on the first Payment Date specified on the
face hereof, to the Person in whose name this Certificate is registered at the close of business on
the applicable Record Date with respect to a Book-Entry Certificate and at the last day of the
calendar month preceding the month in which the related Payment Date occurs, in an amount equal to
the product of the Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate belongs on such
Payment Date pursuant to the Agreement.

     Distributions on this Certificate shall be made by check or money order mailed to the address
of the person entitled thereto as it appears on the Certificate Register or, upon the written
request of a Certificateholder delivered to the Indenture Trustee at least five Business Days prior
to such Record Date, by wire transfer or otherwise, as set forth in the Sale and Servicing
Agreement. The final distribution on each Certificate will be made in like manner, but only upon
presentment and surrender of such Certificate at the office or agency of the Indenture Trustee
specified in the notice to Certificateholders of such final distribution.

     The Agreement may be amended by the Depositor, the Seller, the Certificate Registrar, the
Paying Agent and the Owner Trustee with prior written notice to the Rating Agencies and the
Indenture Trustee and with the consent of the Insurer (which consent shall not be unreasonably
withheld), but without the consent of any of the Class A Noteholders, the Certificateholders or the
Indenture Trustee, to cure any ambiguity, to correct or supplement any provisions in the Agreement
or for the purpose of adding any provisions to or changing in any manner or

D-2-6

 

eliminating any of the provisions in the Agreement or of modifying in any manner the rights of
the Class A Noteholders or the Certificateholders; provided, however, that such action shall not
adversely affect in any material respect the interests of any Class A Noteholder, any
Certificateholder or the Insurer. The Agreement may also be amended from time to time by the
Seller, the Depositor, the Certificate Registrar, the Paying Agent and the Owner Trustee, with the
prior written consent of the Rating Agencies, the Insurer and the Indenture Trustee, the Class A
Noteholders evidencing more than 50% of the Outstanding Amount in the Class A Notes and the
Transferor, for the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of the Agreement or of modifying in any manner the rights of the Class A
Noteholders or the Transferor, subject to the limitations set forth in the Agreement.

     As provided in the Agreement and subject to certain limitations therein set forth, the
transfer of this Class Certificate is registrable in the Certificate Register of the Certificate
Registrar upon surrender of this Certificate for registration of transfer at the office or agency
maintained by the Certificate Registrar accompanied by a written instrument of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed by the holder hereof
or such holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of
the same Class in authorized denominations and evidencing the same aggregate Percentage Interest in
the Trust will be issued to the designated transferee or transferees.

     The Certificates are issuable without coupons and will be registered and denominated as
specified in the Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of the same Class in
authorized denominations and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service charge will be made for any such registration of transfer or exchange, but the
Owner Trustee and the Certificate Registrar may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     The Servicer, the Seller, the Depositor, the Certificate Registrar, the Owner Trustee and any
agent thereof may treat the Person in whose name this Certificate is registered as the owner hereof
for all purposes, and none of the Servicer, the Seller, the Depositor, the Certificate Registrar,
the Owner Trustee or any agent shall be affected by any notice to the contrary.

     No transfer, sale, pledge or other disposition of this Certificate shall be made unless such
disposition is exempt from the registration requirements of the Securities Act of 1933, as amended
(the “Securities Act”), and any applicable state securities laws or is made in accordance with the
Securities Act and applicable state securities laws. No sale, pledge or other transfer of this
Certificate may be made by any person unless such sale, pledge or other transfer is made to a
person who the transferor reasonably believes after dues inquiry is (A) a “Qualified Institutional
Buyer” (as defined in Rule 144A under the Securities Act), acting for its own account (and not for
the account of others) or as a fiduciary or agent for others (which others also are Qualified
Institutional Buyers) to whom notice is given that the sale, pledge or transfer is being made in
reliance on Rule 144A, (B) an “Accredited Investor” as defined in Rule 501(a) under the Securities
Act, or (C) a person involved in the organization or operation of the Trust or an affiliate of such
person within the meaning of Rule 3a-7 of the Investment Company Act of

D-2-7

 

1940, as amended and (D) is made under exemption from or otherwise in compliance with state
securities laws. The Holder of this Certificate desiring to effect such transfer shall, and does
hereby agree to, indemnify the Trust against any liability that may result if the transfer is not
so exempt or is not made in accordance with such federal and state laws.

     The Servicer will have the right to purchase all of the Mortgage Loans and REO Properties and
thereby effect the early retirement of the Certificates, on the next succeeding Payment Date on
which the Class A Note Principal Balance is equal to or less than 10% of the Original Class A
Certificate Note Balance. The price paid upon any purchase described in the preceding sentence
shall be the price described in Section 8.01(a) the Sale and Servicing Agreement.

     This Certificate shall be construed in accordance with the laws of the State of Delaware,
without reference to its conflict of law provisions, and the obligations, rights and remedies of
the parties hereunder shall be determined in accordance with such laws.

     The recitals contained herein shall not be taken as statements of the Owner Trustee and
Certificate Registrar and the Owner Trustee and Certificate Registrar assume no responsibility
therefor.

D-2-8

 

ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

(Please print or typewrite name and address including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby authorizes the transfer of
registration of such Percentage Interest to assignee on the Certificate Register of the Trust.

     I (We) further direct the Certificate Registrar to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate to the following
address:

	 	 	 
	Dated: _________
	 	 
	

	 	 
	

	 	Signature by or on behalf of assignor
	 	 	 
	

	 	 
	

	 	Signature Guaranteed
	 	 	 
	

	 	NOTICE: The signature to this assignment must
correspond with the name as written upon the face of
the within instrument in every particular, without
alteration or enlargement or any change whatsoever.

D-2-9

 

PAYMENT INSTRUCTIONS

     The
assignee should include the following for purposes of payment:

Payments shall be made, by wire transfer or otherwise, in immediately available funds
to ___________________________________________

for the account of _____________________________________________________, or, if mailed by check, to _________________________________________________________________.

Applicable statements should be mailed to
__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

     This information is provided by ___________________________________________________________________________________________________,
the assignee named above, or _____________________________________________________________________,
as its agent.

D-2-10

 

EXHIBIT E

FORM OF CLASS O CERTIFICATE

THIS CERTIFICATE IS NOT ENTITLED TO SCHEDULED DISTRIBUTIONS OF PRINCIPAL AND WILL NOT ACCRUE
INTEREST. THE HOLDER OF THIS CERTIFICATE WILL BE ENTITLED TO CERTAIN DISTRIBUTIONS AS PROVIDED IN
THE AGREEMENT REFERRED TO HEREIN.

THIS CERTIFICATE IS SUBORDINATE IN RIGHT OF PAYMENT AS DESCRIBED IN A SALE AND SERVICING AGREEMENT
DATED AS OF DECEMBER 1, 2004 (THE “SALE AND SERVICING AGREEMENT”), AMONG INDYMAC ABS, INC., INDYMAC
RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1, INDYMAC BANK, F.S.B. AND DEUTSCHE BANK NATIONAL
TRUST COMPANY, AS INDENTURE TRUSTEE.

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES OR BLUE SKY LAWS OF ANY STATE IN THE UNITED
STATES OR ANY FOREIGN SECURITIES LAWS. BY ITS ACCEPTANCE OF THIS CERTIFICATE THE HOLDER OF THIS
CERTIFICATE IS DEEMED TO REPRESENT TO THE OWNER TRUSTEE AND THE CERTIFICATE REGISTRAR THAT IT IS
(A) A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT AND IS
ACQUIRING SUCH CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A
FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS), (B) AN
“ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT, OR (C) A PERSON INVOLVED
IN THE ORGANIZATION OR OPERATION OF THE TRUST OR AN AFFILIATE OF SUCH PERSON WITHIN THE MEANING OF
RULE 3a-7 OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE “1940 ACT”).

NO SALE, PLEDGE OR OTHER TRANSFER OF THIS CERTIFICATE MAY BE MADE BY ANY PERSON UNLESS SUCH SALE,
PLEDGE OR OTHER TRANSFER IS MADE TO A PERSON WHO THE TRANSFEROR REASONABLY BELIEVES AFTER DUE
INQUIRY IS (A) A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A), ACTING FOR ITS OWN
ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS
ALSO ARE QUALIFIED INSTITUTIONAL BUYERS) TO WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE OR TRANSFER
IS BEING MADE IN RELIANCE ON RULE 144A, (B) AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a)
UNDER THE SECURITIES ACT, OR (C) A PERSON INVOLVED IN THE ORGANIZATION OR OPERATION OF THE TRUST OR
AN AFFILIATE OF SUCH PERSON WITHIN THE MEANING OF RULE 3a-7 OF THE 1940 ACT AND (D) AND IS MADE
UNDER EXEMPTION FROM OR OTHERWISE IN COMPLIANCE WITH STATE SECURITIES LAWS.

E-1

 

EACH PURCHASER OF A CERTIFICATE WILL BE DEEMED TO REPRESENT THAT IT IS NOT (A) AN “EMPLOYEE BENEFIT
PLAN” WITHIN THE MEANING OF SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED (“ERISA”), WHETHER OR NOT SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, OR (B) A “PLAN”
DESCRIBED IN SECTION 4975(E)(1) OF THE CODE (ANY SUCH PLAN OR EMPLOYEE BENEFIT PLAN, A “PLAN”) OR
(C) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A PLAN’S INVESTMENT IN THE
ENTITY AND IS NOT DIRECTLY OR INDIRECTLY PURCHASING SUCH CERTIFICATE INTEREST ON BEHALF OF, AS
INVESTMENT MANAGER OF, AS NAMED FIDUCIARY OF, AS TRUSTEE OF, OR WITH ASSETS OF A PLAN.

E-2

 

	 	 	 	 	 	 	 
	Certificate No.

	 	:
	 	1	 
	 
	 	 	 	 	 	 
	Cut-off Date

	 	:
	 	December 1, 2004

	 
	 	 	 	 	 	 
	First Distribution Date

	 	:
	 	January 27, 2005

	 
	 	 	 	 	 	 
	Percentage Interest

	 	:
	 	_________	 
	 
	 	 	 	 	 	 
	CUSIP

	 	:
	 	456606 GL 0

	 
	 	 	 	 	 	 
	Class

	 	:
	 	O	 
	 
	 	 	 	 	 	 
	Assumed Maturity Date

	 	:
	 	_________	 

E-3

 

INDYMAC RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1

CLASS O CERTIFICATES

evidencing a Percentage Interest in the distributions allocable to the Certificates

of the above-referenced Class with respect to the Trust consisting of Mortgage Loans

transferred by

INDYMAC ABS, INC., as Depositor

     Principal in respect of this Certificate is distributable as set forth in the Agreement. This
Class O Certificate does not evidence an obligation of, or an interest in, and is not guaranteed by
the Seller, the Depositor or the Owner Trustee or any of their respective affiliates. The Class O
Certificates are not entitled to scheduled distributions of principal and will not accrue interest.

     This certifies that [____________] is the registered owner of the Percentage Interest
evidenced by this Class O Certificate in certain distributions with respect to a Trust consisting
primarily of the Mortgage Loans sold by IndyMac ABS, Inc., as Depositor (the “Depositor”). The
Trust was created pursuant to a Trust Agreement, dated as of December 14, 2004 among the Seller,
the Depositor and the Owner Trustee, as amended and restated by an Amended and Restated Trust
Agreement, dated as of December 22, 2004 (the “Agreement”). To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Agreement or, if not defined
therein, in the Sale and Servicing Agreement. This Class O Certificate is issued under and is
subject to the terms, provisions and conditions of the Agreement, to which Agreement the Holder of
this Class O Certificate by virtue of the acceptance hereof assents and by which such Holder is
bound.

     Reference is hereby made to the further provisions of this Class O Certificate set forth on
the reverse hereof, which further provisions shall for all purposes have the same effect as if set
forth at this place.

     This Class O Certificate shall not be entitled to any benefit under the Agreement or be valid
for any purpose unless manually countersigned by an authorized signatory of the Certificate
Registrar.

E-4

 

     IN WITNESS WHEREOF, the Owner Trustee on behalf of the Trust has caused this Certificate to be
duly executed.

Dated: December 22, 2004

	 	 	 	 	 
	 	INDYMAC RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1

 	 
	 	By:  	WILMINGTON TRUST COMPANY
 	 
	 	 	not in its individual capacity, but solely as 	 
	 	 	Owner Trustee 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

This is one of the Certificates

referenced in the within-mentioned Agreement.

DEUTSCHE BANK NATIONAL TRUST COMPANY,

not in its individual capacity but solely as Certificate Registrar

	 	 	 
	By:
	 	 
	

	 	 
	

	 	Name:
	

	 	Title:

E-5

 

[Reverse]

INDYMAC RESIDENTIAL ASSET-BACKED TRUST, SERIES 2004-LH1

     This Certificate is one of a duly authorized issue of Certificates designated as IndyMac
Residential Asset-Backed Trust, Series 2004-LH1, Class O Certificates (herein collectively called
the “Certificates”), and representing a beneficial ownership interest in the Trust created by the
Agreement. The Certificates do not constitute obligations of or interests in the Depositor, the
Seller, the Owner Trustee or any of their respective Affiliates.

     The Certificateholder, by its acceptance of this Certificate, agrees that it will look solely
to the funds on deposit in the Payment Account for payment hereunder and that the Owner Trustee is
not liable to the Certificateholders for any amount payable under this Certificate or the Agreement
or, except as expressly provided in the Agreement, subject to any liability under the Agreement.
Amounts payable under this Certificate or the Agreement are not insured or guaranteed by any
governmental agency or instrumentality or by any other Person.

     This Certificate does not purport to summarize the Agreement or the Sale and Servicing
Agreement and reference is made to the Agreement and the Sale and Servicing Agreement, as
appropriate, for the interests, rights and limitations of rights, benefits, obligations and duties
evidenced thereby, and the rights, duties and immunities of the Owner Trustee.

     Pursuant to the terms of the Sale and Servicing Agreement, a distribution will be made on the
27th day of each month or, if such 27th day is not a Business Day then the first Business Day
following such 27th day (the “Payment Date”), commencing on the first Payment Date specified on the
face hereof, to the Person in whose name this Certificate is registered at the close of business on
the applicable Record Date with respect to a Book-Entry Certificate and at the last day of the
calendar month preceding the month in which the related Payment Date occurs, in an amount equal to
the product of the Percentage Interest evidenced by this Certificate and the amount required to be
distributed to Holders of Certificates of the Class to which this Certificate belongs on such
Payment Date pursuant to the Agreement.

     Distributions on this Certificate shall be made by check or money order mailed to the address
of the person entitled thereto as it appears on the Certificate Register or, upon the written
request of a Certificateholder delivered to the Indenture Trustee at least five Business Days prior
to such Record Date, by wire transfer or otherwise, as set forth in the Sale and Servicing
Agreement. The final distribution on each Certificate will be made in like manner, but only upon
presentment and surrender of such Certificate at the office or agency of the Indenture Trustee
specified in the notice to Certificateholders of such final distribution.

     The Agreement may be amended by the Depositor, the Seller, the Certificate Registrar, the
Paying Agent and the Owner Trustee with prior written notice to the Rating Agencies and the
Indenture Trustee and with the consent of the Insurer (which consent shall not be unreasonably
withheld), but without the consent of any of the Class A Noteholders, the Certificateholders or the
Indenture Trustee, to cure any ambiguity, to correct or supplement any provisions in the Agreement
or for the purpose of adding any provisions to or changing in any manner or

E-6

 

eliminating any of the provisions in the Agreement or of modifying in any manner the rights of
the Class A Noteholders or the Certificateholders; provided, however, that such action shall not
adversely affect in any material respect the interests of any Class A Noteholder, any
Certificateholder or the Insurer. The Agreement may also be amended from time to time by the
Seller, the Depositor, the Certificate Registrar, the Paying Agent and the Owner Trustee, with the
prior written consent of the Rating Agencies, the Insurer and the Indenture Trustee, the Class A
Noteholders evidencing more than 50% of the Outstanding Amount in the Class A Notes and the
Transferor, for the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of the Agreement or of modifying in any manner the rights of the Class A
Noteholders or the Transferor, subject to the limitations set forth in the Agreement.

     As provided in the Agreement and subject to certain limitations therein set forth, the
transfer of this Class Certificate is registrable in the Certificate Register of the Certificate
Registrar upon surrender of this Certificate for registration of transfer at the office or agency
maintained by the Certificate Registrar accompanied by a written instrument of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed by the holder hereof
or such holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of
the same Class in authorized denominations and evidencing the same aggregate Percentage Interest in
the Trust will be issued to the designated transferee or transferees.

     The Certificates are issuable without coupons and will be registered and denominated as
specified in the Agreement. As provided in the Agreement and subject to certain limitations
therein set forth, the Certificates are exchangeable for new Certificates of the same Class in
authorized denominations and evidencing the same aggregate Percentage Interest, as requested by the
Holder surrendering the same.

     No service charge will be made for any such registration of transfer or exchange, but the
Owner Trustee and the Certificate Registrar may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     The Servicer, the Seller, the Depositor, the Certificate Registrar, the Owner Trustee and any
agent thereof may treat the Person in whose name this Certificate is registered as the owner hereof
for all purposes, and none of the Servicer, the Seller, the Depositor, the Certificate Registrar,
the Owner Trustee or any agent shall be affected by any notice to the contrary.

     No transfer, sale, pledge or other disposition of this Certificate shall be made unless such
disposition is exempt from the registration requirements of the Securities Act of 1933, as amended
(the “Securities Act”), and any applicable state securities laws or is made in accordance with the
Securities Act and applicable state securities laws. No sale, pledge or other transfer of this
Certificate may be made by any person unless such sale, pledge or other transfer is made to a
person who the transferor reasonably believes after dues inquiry is (A) a “Qualified Institutional
Buyer” (as defined in Rule 144A under the Securities Act), acting for its own account (and not for
the account of others) or as a fiduciary or agent for others (which others also are Qualified
Institutional Buyers) to whom notice is given that the sale, pledge or transfer is being made in
reliance on Rule 144A, (B) an “Accredited Investor” as defined in Rule 501(a) under the Securities
Act, or (C) a person involved in the organization or operation of the Trust or an affiliate of such
person within the meaning of Rule 3a-7 of the Investment Company Act of

E-7

 

1940, as amended and (D) is made under exemption from or otherwise in compliance with state
securities laws. The Holder of this Certificate desiring to effect such transfer shall, and does
hereby agree to, indemnify the Trust against any liability that may result if the transfer is not
so exempt or is not made in accordance with such federal and state laws.

     The Servicer will have the right to purchase all of the Mortgage Loans and REO Properties and
thereby effect the early retirement of the Certificates, on the next succeeding Payment Date on
which the Class A Note Principal Balance is equal to or less than 10% of the Original Class A
Certificate Note Balance. The price paid upon any purchase described in the preceding sentence
shall be the price described in Section 8.01(a) the Sale and Servicing Agreement.

     This Certificate shall be construed in accordance with the laws of the State of Delaware,
without reference to its conflict of law provisions, and the obligations, rights and remedies of
the parties hereunder shall be determined in accordance with such laws.

     The recitals contained herein shall not be taken as statements of the Owner Trustee and
Certificate Registrar and the Owner Trustee and Certificate Registrar assume no responsibility
therefor.

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ASSIGNMENT

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

(Please print or typewrite name and address including postal zip code of assignee)

the Percentage Interest evidenced by the within Certificate and hereby authorizes the transfer of
registration of such Percentage Interest to assignee on the Certificate Register of the Trust.

     I (We) further direct the Certificate Registrar to issue a new Certificate of a like
denomination and Class, to the above named assignee and deliver such Certificate to the following
address:

	 	 	 
	Dated: ____________	 	 
	

	 	 
	

	 	Signature by or on behalf of assignor
	 
	

	 	 
	

	 	Signature Guaranteed	 
	 
	

	 	NOTICE: The signature to this assignment must
correspond with the name as written upon the face of
the within instrument in every particular, without
alteration or enlargement or any change whatsoever.

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PAYMENT INSTRUCTIONS

The assignee should include the following for purposes of payment:

Payments shall be made, by wire transfer or otherwise, in immediately available funds
to ____________________________________________________________________________________________________
___________________________________________________________________________________________________ for
the account of
__________________________________________________________________________________________,
account number ____________________ or, if mailed by check, to
__________________________________________________
______________________________________________________________________________________________________.

Applicable statements should be mailed to _____________________________________________________________________
______________________________________________________________________________________________________

     This
information is provided by
___________________________________________________________________________,
the assignee named above, or _____________________________________________________________________,
as its agent.

E-10

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