Document:

INDYMAC ABS, INC.
                                    Depositor

                              INDYMAC BANK, F.S.B.
                           Seller and Master Servicer

                      DEUTSCHE BANK NATIONAL TRUST COMPANY
                                     Trustee

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

                         POOLING AND SERVICING AGREEMENT
                            Dated as of June 1, 2005

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

                  HOME EQUITY MORTGAGE LOAN ASSET-BACKED TRUST
                               Series INABS 2005-B

               HOME EQUITY MORTGAGE LOAN ASSET-BACKED CERTIFICATES
                               Series INABS 2005-B

<PAGE>

<TABLE>
<CAPTION>
                                            TABLE OF CONTENTS

                                                                                                   Page

<S>              <C>                                                                               <C>
ARTICLE I DEFINITIONS                                                                                I-1

Section 1.01     Definitions.........................................................................I-1

Section 1.02     Rules of Construction..............................................................I-54

ARTICLE II CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES                             II-1

Section 2.01     Conveyance of Mortgage Loans.......................................................II-1

Section 2.02     Acceptance by the Trustee of the Mortgage Loans....................................II-4

Section 2.03     Representations, Warranties, and Covenants of the  Seller and the Master Servicer..II-6

Section 2.04     Representations and Warranties of the Depositor as to the Mortgage Loans...........II-8

Section 2.05     Delivery of Opinion of Counsel in Connection with Substitutions and Repurchases....II-8

Section 2.06     Execution and Delivery of Certificates.............................................II-9

Section 2.07     Conveyance of Subsequent Mortgage Loans............................................II-9

Section 2.08     REMIC Matters.....................................................................II-12

(A) Issuance of the REMIC I Regular Interests and the Class R-I Interest...........................II-12

(B) Conveyance of the REMIC I Regular Interests; REMIC I, REMIC II and REMIC III by the Trustee....II-12

(C) Issuance of Class R Certificates...............................................................II-13

Section 2.09     Covenants of the Master Servicer..................................................II-13

ARTICLE III ADMINISTRATION AND SERVICING OF MORTGAGE LOANS                                         III-1

Section 3.01     Master Servicer to Service Mortgage Loans.........................................III-1

Section 3.02     Subservicing; Enforcement of the Obligations of Subservicers......................III-1

Section 3.03     [Reserved]........................................................................III-2

Section 3.04     No Contractual Relationship Between Subservicers and the Trustee..................III-2

Section 3.05     Trustee to Act as Master Servicer.................................................III-2

Section 3.06     Collection of Mortgage Loan Payments; Servicing Accounts; Collection Account;
                 Certificate Account; Distribution Account; Excess Reserve Fund Account............III-3

Section 3.07     Collection of Taxes, Assessments, and Similar Items Escrow Accounts...............III-7

Section 3.08     Access to Certain Documentation and Information Regarding the Mortgage Loans......III-8

Section 3.09     Permitted Withdrawals from the Certificate Account, the Distribution Account,
                 the Interest CoverageAccount and the Excess Reserve Fund Account..................III-8

Section 3.10     Maintenance of Hazard Insurance; Maintenance of Primary Insurance Policies.......III-10

Section 3.11     Enforcement of Due-On-Sale Clauses; Assumption Agreements........................III-12

Section 3.12     Realization Upon Defaulted Mortgage Loans; Repurchase of Certain Mortgage Loans..III-13

Section 3.13     Trustee to Cooperate; Release of Mortgage Files..................................III-15

Section 3.14     Documents, Records, and Funds in Possession of the Master Servicer to be Held
                 for the Trustee..................................................................III-16

Section 3.15     Servicing Compensation...........................................................III-16

Section 3.16     Access to Certain Documentation..................................................III-17

Section 3.17     Annual Statement as to Compliance................................................III-17

Section 3.18     Annual Independent Public Accountants' Servicing Statement; Financial Statements.III-17

Section 3.19     Errors and Omissions Insurance; Fidelity Bonds...................................III-18

Section 3.20     Notification of Adjustments......................................................III-18

Section 3.21     Prepayment Charges...............................................................III-18

Section 3.22     Pre-Funding Accounts.............................................................III-19

Section 3.23     Interest Coverage Accounts.......................................................III-20

ARTICLE IV DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER                                        IV-1

Section 4.01     Advances...........................................................................IV-1

Section 4.02     Priorities of Distribution.........................................................IV-2

Section 4.03     Monthly Statements to Certificateholders...........................................IV-9

Section 4.04     Cap Contracts.....................................................................IV-12

Section 4.05     [Reserved]........................................................................IV-13

Section 4.06     [Reserved]........................................................................IV-13

Section 4.07     Certain Matters Relating to the Determination of LIBOR............................IV-13

ARTICLE V THE CERTIFICATES                                                                           V-1

Section 5.01     The Certificates....................................................................V-1

Section 5.02     Certificate Register; Registration of Transfer and Exchange of Certificates.........V-1

Section 5.03     Mutilated, Destroyed, Lost or Stolen Certificates...................................V-7

Section 5.04     Persons Deemed Owners...............................................................V-7

Section 5.05     Access to List of Certificateholders' Names and Addresses...........................V-7

Section 5.06     Maintenance of Office or Agency.....................................................V-8

ARTICLE VI THE DEPOSITOR AND THE MASTER SERVICER                                                    VI-1

Section 6.01     Respective Liabilities of the Depositor and the Master Servicer....................VI-1

Section 6.02     Merger or Consolidation of the Depositor or the Master Servicer....................VI-1

Section 6.03     Limitation on Liability of the Depositor, the Seller, the Master Servicer, and
                 Others.............................................................................VI-1

Section 6.04     Limitation on Resignation of the Master Servicer...................................VI-2

Section 6.05     Inspection.........................................................................VI-2

ARTICLE VII DEFAULT                                                                                VII-1

Section 7.01     Events of Default.................................................................VII-1

Section 7.02     Trustee to Act; Appointment of Successor..........................................VII-2

Section 7.03     Notification to Certificateholders................................................VII-4

ARTICLE VIII CONCERNING THE TRUSTEE                                                               VIII-1

Section 8.01     Duties of the Trustee............................................................VIII-1

Section 8.02     Certain Matters Affecting the Trustee............................................VIII-2

Section 8.03     Trustee Not Liable for Certificates or Mortgage Loans............................VIII-3

Section 8.04     Trustee May Own Certificates.....................................................VIII-3

Section 8.05     Trustee's Fees and Expenses......................................................VIII-3

Section 8.06     Eligibility Requirements for the Trustee.........................................VIII-4

Section 8.07     Resignation and Removal of the Trustee...........................................VIII-5

Section 8.08     Successor Trustee................................................................VIII-5

Section 8.09     Merger or Consolidation of the Trustee...........................................VIII-6

Section 8.10     Appointment of Co-Trustee or Separate Trustee....................................VIII-6

Section 8.11     Tax Matters......................................................................VIII-7

Section 8.12     Periodic Filings................................................................VIII-10

Section 8.13     [Reserved]......................................................................VIII-11

Section 8.14     [Reserved]......................................................................VIII-11

Section 8.15     Access to Records of Trustee....................................................VIII-11

Section 8.16     Suits for Enforcement...........................................................VIII-11

ARTICLE IX TERMINATION                                                                              IX-1

Section 9.01     Termination upon Liquidation or Purchase of the Mortgage Loans.....................IX-1

Section 9.02     Final Distribution on the Certificates.............................................IX-1

Section 9.03     Additional Termination Requirements................................................IX-3

ARTICLE X MISCELLANEOUS PROVISIONS                                                                   X-1

Section 10.01    Amendment...........................................................................X-1

Section 10.02    Recordation of Agreement; Counterparts..............................................X-3

Section 10.03    Governing Law.......................................................................X-3

Section 10.04    Intention of Parties................................................................X-3

Section 10.05    Notices.............................................................................X-4

Section 10.06    Severability of Provisions..........................................................X-5

Section 10.07    Assignment..........................................................................X-5

Section 10.08    Limitation on Rights of Certificateholders..........................................X-5

Section 10.09    Inspection and Audit Rights.........................................................X-6

Section 10.10    Certificates Nonassessable and Fully Paid...........................................X-6

Section 10.11    Official Record.....................................................................X-6

Section 10.12    Protection of Assets................................................................X-6

Section 10.13    Qualifying Special Purpose Entity...................................................X-7

Section 10.14    Rights of NIM Insurer...............................................................X-7
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                               SCHEDULES

<S>              <C>                                                                               <C>
Schedule I       Mortgage Loan Schedule............................................................S-I-1
Schedule II:     Representations and Warranties of the Seller/Master Servicer as
                 of the Closing Date..............................................................S-II-1
Schedule III:    Representations and Warranties as to the Mortgage Loans as of the Closing Date
                 or Cut-off Date, as applicable..................................................S-III-1

                                                EXHIBITS

Exhibit A:       Form of Class A and Subordinated Certificates.......................................A-1
Exhibit B:       Form of Class P Certificate.........................................................B-1
Exhibit C:       Form of Class R Certificate.........................................................C-1
Exhibit D:       Form of Class C Certificate.........................................................D-1
Exhibit E:       [Reserved]..........................................................................E-1
Exhibit F:       Form of Reverse of Certificates.....................................................F-1
Exhibit G-1:     Form of Initial Certification of Trustee............................................G-1
Exhibit G-2:     Form of Delayed Delivery Certification .............................................G-3
Exhibit H:       Form of Final Certification of Trustee..............................................H-1
Exhibit I:       Form of Transfer Affidavit..........................................................I-1
Exhibit J:       Form of Transferor Certificate......................................................J-1
Exhibit K:       [Reserved]..........................................................................K-1
Exhibit L:       Form of Rule 144A Letter............................................................L-1
Exhibit M:       Form of Request for Release (for Trustee)...........................................M-1
Exhibit N:       Form of Request for Release (Mortgage Loan Paid in Full, Repurchased, and Released).N-1
Exhibit O:       Form of Trustee Certification.......................................................O-1
Exhibit P:       Form of Addition Notice.............................................................P-1
Exhibit Q:       Form of Subsequent Transfer Instrument..............................................Q-1
</TABLE>

<PAGE>

         THIS POOLING AND SERVICING AGREEMENT, dated as of June 1, 2005, among
IndyMac ABS, Inc., a Delaware corporation, as depositor (the "DEPOSITOR"),
IndyMac Bank, F.S.B. ("INDYMAC"), a federal savings bank, as seller (in that
capacity, the "SELLER") and as master servicer (in that capacity, the "MASTER
SERVICER"), and Deutsche Bank National Trust Company, a national banking
association, as trustee (the "TRUSTEE"),

                                 WITNESSETH THAT

         In consideration of the mutual agreements herein contained, the parties
agree as follows:

                              PRELIMINARY STATEMENT

         The Depositor intends to sell pass-through certificates (collectively,
the "CERTIFICATES"), to be issued hereunder in multiple classes, which in the
aggregate will evidence the entire beneficial ownership interest in each REMIC
(as defined herein) created hereunder. The Trust Fund will consist of a
segregated pool of assets consisting of the Mortgage Loans and certain other
related assets subject to this Agreement.

<PAGE>

                                     REMIC I

         As provided herein, the Trustee will elect to treat the segregated pool
of assets consisting of the Mortgage Loans and certain other related assets
(other than the Pre-Funding Accounts, any Subsequent Mortgage Loan Interest, the
Excess Reserve Fund Account, the Interest Coverage Account and the Cap
Contracts) subject to this Agreement as a REMIC for federal income tax purposes,
and such segregated pool of assets will be designated as REMIC I. The Class R-I
Interest will be the sole class of residual interests in REMIC I for purposes of
the REMIC Provisions (as defined herein). The following table irrevocably sets
forth the designation, the REMIC I Remittance Rate, the initial Uncertificated
Balance and, for purposes of satisfying Treasury Regulation Section
1.860G-1(a)(4)(iii), the latest possible maturity date for each of the REMIC I
Regular Interests (as defined herein). None of the REMIC I Regular Interests
will be certificated.

<TABLE>
<CAPTION>
   ===================== ============================= ============================== =====================
                                                          Initial Uncertificated        Latest Possible
   Class Designation       REMIC I Remittance Rate                Balance               Maturity Date(1)
   --------------------- ----------------------------- ------------------------------ ---------------------
<S>                              <C>                         <C>                         <C>
   Class I-LT1                   Variable (2)                $  350,185,194.37           July 25, 2035
   --------------------- ----------------------------- ------------------------------ ---------------------
   Class I-LT1PF                 Variable (2)                $   77,149,410.28           July 25, 2035
   --------------------- ----------------------------- ------------------------------ ---------------------
   Class I-LT2                   Variable (2)                $  349,804,316.94           July 25, 2035
   --------------------- ----------------------------- ------------------------------ ---------------------
   Class I-LT2PF                 Variable (2)                $   72,861,078.41           July 25, 2035
   --------------------- ----------------------------- ------------------------------ ---------------------
   Class I-LTP                   Variable (2)                $          100.00           July 25, 2035
   ===================== ============================= ============================== =====================
</TABLE>

         (1) For purposes of Treasury Regulation Section 1.860G-1(a)(4)(iii),
the Distribution Date immediately following the maturity date for the Mortgage
Loan with the latest maturity date has been designated as the latest possible
maturity date for each REMIC I Regular Interest.

         (2) Calculated in accordance with the definition of REMIC I Remittance
Rate herein.

<PAGE>

                                    REMIC II

         As provided herein, the Trustee will elect to treat the segregated pool
of assets consisting of the REMIC I Regular Interests as a REMIC for federal
income tax purposes, and such segregated pool of assets will be designated as
REMIC II. The Class R-II Interest will evidence the sole class of residual
interests in REMIC II for purposes of the REMIC Provisions. The following table
irrevocably sets forth the designation, the REMIC II Remittance Rate, the
initial Uncertificated Balance and, for purposes of satisfying Treasury
Regulation Section 1.860G-1(a)(4)(iii), the latest possible maturity date for
each of the REMIC II Regular Interests (as defined herein). None of the REMIC II
Regular Interests will be certificated.

<TABLE>
<CAPTION>
                          REMIC I                    Initial                Latest Possible
   Designation        Remittance Rate         Uncertificated Balance       Maturity Date(1)
----------------    -------------------     -------------------------    --------------------
<S>                     <C>                      <C>                         <C>
     II-LTAA            Variable(2)              $  416,500,000.00           July 25, 2035
    II-LTAI1            Variable(2)              $    1,724,295.00           July 25, 2035
    II-LTAII1           Variable(2)              $      727,500.00           July 25, 2035
    II-LTAII2           Variable(2)              $      858,550.00           July 25, 2035
    II-LTAII3           Variable(2)              $      119,405.00           July 25, 2035
     II-LTM1            Variable(2)              $      133,875.00           July 25, 2035
     II-LTM2            Variable(2)              $      121,125.00           July 25, 2035
     II-LTM3            Variable(2)              $       80,750.00           July 25, 2035
     II-LTM4            Variable(2)              $       63,750.00           July 25, 2035
     II-LTM5            Variable(2)              $       59,500.00           July 25, 2035
     II-LTM6            Variable(2)              $       63,750.00           July 25, 2035
     II-LTM7            Variable(2)              $       57,375.00           July 25, 2035
     II-LTM8            Variable(2)              $       44,625.00           July 25, 2035
     II-LTM9            Variable(2)              $       44,625.00           July 25, 2035
    II-LTM10            Variable(2)              $       31,875.00           July 25, 2035
    II-LTM11            Variable(2)              $       42,500.00           July 25, 2035
     II-LTZZ            Variable(2)              $    4,326,500.00           July 25, 2035
     II-LTP             Variable(2)              $          100.00           July 25, 2035
    II-LT1SUB           Variable(2)              $        8,247.56           July 25, 2035
    II-LT1GRP           Variable(2)              $       42,733.46           July 25, 2035
    II-LT2SUB           Variable(2)              $        8,157.44           July 25, 2035
    II-LT2GRP           Variable(2)              $       42,266.54           July 25, 2035
     II-LTXX            Variable(2)              $  424,898,595.00           July 25, 2035
</TABLE>

     ----------------
         (1) For purposes of Treasury Regulation Section 1.860G-1(a)(4)(iii),
the Distribution Date immediately following the maturity date for the Mortgage
Loan with the latest maturity date has been designated as the latest possible
maturity date for each REMIC II Regular Interest.

         (2) Calculated in accordance with the definition of REMIC II Remittance
Rate herein.

<PAGE>

                                    REMIC III

         As provided herein, the Trustee will elect to treat the segregated pool
of assets consisting of the REMIC II Regular Interests as a REMIC for federal
income tax purposes, and such segregated pool of assets will be designated as
REMIC III. The Class R-III Interest will evidence the sole class of residual
interests in REMIC III for purposes of the REMIC Provisions. The following table
irrevocably sets forth the designation, the Pass-Through Rate, the initial
aggregate Certificate Principal Balance and, for purposes of satisfying Treasury
Regulation Section 1.860G-1(a)(4)(iii), the latest possible maturity date for
the indicated Classes of Certificates.

                                        Initial Aggregate
                                      Certificate Principal     Latest Possible
Designation       Pass-Through Rate          Balance            Maturity Date(1)
Class A-I-1          Variable(2)         $    344,859,000        July 25, 2035
Class A-II-1         Variable(2)         $    145,500,000        July 25, 2035
Class A-II-2         Variable(2)         $    171,710,000        July 25, 2035
Class A-II-3         Variable(2)         $     23,881,000        July 25, 2035
 Class M-1           Variable(2)         $     26,775,000        July 25, 2035
 Class M-2           Variable(2)         $     24,225,000        July 25, 2035
 Class M-3           Variable(2)         $     16,150,000        July 25, 2035
 Class M-4           Variable(2)         $     12,750,000        July 25, 2035
 Class M-5           Variable(2)         $     11,900,000        July 25, 2035
 Class M-6           Variable(2)         $     12,750,000        July 25, 2035
 Class M-7           Variable(2)         $     11,475,000        July 25, 2035
 Class M-8           Variable(2)         $      8,925,000        July 25, 2035
 Class M-9           Variable(2)         $      8,925,000        July 25, 2035
 Class M-10          Variable(2)         $      6,375,000        July 25, 2035
 Class M-11          Variable(2)         $      8,500,000        July 25, 2035
  Class C            Variable(2)(3)      $     15,300,000        July 25, 2035
  Class P             (4)                $            100        July 25, 2035
  Class R            N/A                         N/A             July 25, 2035

         ----------------
         (1) For purposes of Treasury Regulation Section 1.860G-1(a)(4)(iii),
the Distribution Date immediately following the maturity date for the Mortgage
Loan with the latest maturity date has been designated as the latest possible
maturity date for each Class of Certificates.

         (2) Calculated in accordance with the definition of Pass-Through Rate
herein.

         (3) The Class C Certificates will accrue interest at their variable
Pass-Through Rate on the Notional Amount of the Class C Certificates outstanding
from time to time, which shall equal the Uncertificated Balance of the REMIC II
Regular Interests, other than REMIC II Regular Interest II-LTP. The Class C
Certificates will not accrue interest on their Uncertificated Balance.

         (4) The Class P Certificates will not accrue interest.

<PAGE>

         Set forth below are designations of Classes of Certificates to the
categories used herein:

Book-Entry Certificates................ All Classes of Certificates other than
                                        the Definitive Certificates.

Group I Certificates .................. Class A-I-1 Certificates.

Group II Certificates ................. Class A-II-1, Class A-II-2 and
                                        Class A-II-3 Certificates.

Subordinated .......................... Certificates... Class M-1, Class M-2,
                                        Class M-3, Class M-4, Class M-5, Class
                                        M-6, Class M-7, Class M-8, Class M-9,
                                        Class M-10 and Class M-11 Certificates.

ERISA-Restricted ...................... Certificates Class R, Class P and Class
                                        C Certificates, until they have been the
                                        subject of an ERISA-Qualifying
                                        Underwriting; and the Certificates of
                                        any Class that cease to satisfy the
                                        rating requirements of the Underwriter's
                                        Exemption.

LIBOR Certificates .................... All classes of Certificates other than
                                        the Private Certificates.

Offered Certificates .................. All Classes of Certificates other than
                                        the Private Certificates.

Definitive Certificates ............... Class R, Class P and Class C
                                        Certificates.

Private Certificates .................. Class A-II-1, Class M-11, Class R,
                                        Class P and Class C Certificates.

Rating Agencies ....................... Moody's, S&P and Fitch.

Regular Certificates .................. All Classes of Certificates other than
                                        the Class R Certificates.

Residual Certificates ................. Class R Certificates.

         References to "CLASS A CERTIFICATES" are references to Certificates of
either or both Certificate Groups of similar designations, as the context
requires.

<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

Section 1.01      DEFINITIONS.

         Unless the context requires a different meaning, capitalized terms are
used in this Agreement as defined below.

         60+ DAY DELINQUENT LOAN: As of any day during any calendar month, each
Mortgage Loan in foreclosure, all REO Property, each Mortgage Loan for which the
Mortgagor has filed for bankruptcy, and each Mortgage Loan with respect to which
any portion of a Scheduled Payment is, as of the last day of the Remittance
Period before the Remittance Period ending in such calendar month, two months or
more past due (without giving effect to any grace period). For instance, in
making a determination on the Distribution Date in July (July 25) with respect
to a Mortgage Loan whose Scheduled Payment for May is delinquent (and that has
no previous Scheduled Payment that is delinquent), that Mortgage Loan would not
be a 60+ Day Delinquent Loan because as of the last day of the Remittance Period
before the Remittance Period ending in July (which would be the Remittance
Period ending in June (on June 1)), the Scheduled Payment for May (due May 1)
would only be one month past due.

         ACCRUED CERTIFICATE INTEREST DISTRIBUTION AMOUNT: For any Distribution
Date for each Class of Certificates (other than the Class P, Class R and Class C
Certificates), the amount of interest accrued during the related Interest
Accrual Period at the applicable Pass-Through Rate on the related Class
Certificate Balance immediately before the Distribution Date reduced by any Net
Prepayment Interest Shortfalls and Relief Act Interest Shortfalls for such
Distribution Date allocated to such Class (allocated to each Certificate based
on its respective entitlements to interest irrespective of any Prepayment
Interest Shortfalls or Relief Act Interest Shortfalls for such Distribution
Date).

         ADDITION NOTICE: With respect to the transfer of Subsequent Mortgage
Loans to the Trust Fund pursuant to Section 2.07, a notice of the Depositor's
designation of the Subsequent Mortgage Loans to be sold to the Trust Fund and
the aggregate principal balance of such Subsequent Mortgage Loans as of the
related Subsequent Cut-off Date. The Addition Notice shall be given no later
than three (3) Business Days prior to the related Subsequent Transfer Date and
shall be substantially in the form attached hereto as Exhibit P.

         ADJUSTED MORTGAGE RATE: As to each Mortgage Loan and at any time, the
per annum rate equal to (x) the Mortgage Rate less (y) the Master Servicing Fee
Rate.

         ADJUSTED NET MORTGAGE RATE: As to each Mortgage Loan and at any time,
the per annum rate equal to (x) the Mortgage Rate less (y) the Expense Fee Rate.

         ADJUSTMENT DATE: As to any adjustable-rate Mortgage Loan, the first Due
Date on which the related Mortgage Rate adjusts as provided in the related
Mortgage Note and each Due Date thereafter on which the Mortgage Rate adjusts as
provided in the related Mortgage Note.

         ADVANCE: The payment required to be made by the Master Servicer for any
Distribution Date pursuant to Section 4.01, the amount of that payment being
equal to the aggregate of payments of principal and interest (net of the Master
Servicing Fee and any net proceeds in the case of any REO Properties) on the
Mortgage Loans that were due during the related Remittance Period and not
received as of the close of business on the related Determination Date, plus an
amount equivalent to interest on each REO Property less the aggregate amount of
any delinquent payments that the Master Servicer has determined would constitute
a Nonrecoverable Advance if advanced.

         AFFILIATE: With respect to any Person, any other Person controlling,
controlled or under common control with such Person. For purposes of this
definition, "control" means the power to direct the management and policies of a
Person, directly or indirectly, whether through ownership of voting securities,
by contract, or otherwise and "controlling" and "controlled" shall have meanings
correlative to the foregoing. Affiliates also include any entities consolidated
within the requirements of generally accepted accounting principles.

         AGREEMENT: This Pooling and Servicing Agreement and all amendments and
supplements.

         AMOUNT HELD FOR FUTURE DISTRIBUTION: For any Distribution Date, the
aggregate amount held in the Certificate Account at the close of business on the
related Determination Date on account of (i) Principal Prepayments received
after the end of the related Prepayment Period and Liquidation Proceeds and
Subsequent Recoveries on the Mortgage Loans, in each case, allocable to
principal, received after the end of the preceding calendar month and (ii) all
Scheduled Payments on the Mortgage Loans due after the end of the related
Remittance Period.

         APPLIED REALIZED LOSS AMOUNT: For any Distribution Date and any Class
of Subordinated Certificates, the excess of the aggregate Class Certificate
Balance of the Class A and Subordinated Certificates over the aggregate Stated
Principal Balance of all of the Mortgage Loans as of the last day of the
preceding Remittance Period.

         ASSUMED BALANCE: For a Distribution Date and Loan Group is equal to the
excess of the aggregate Stated Principal Balance of the mortgage loans in that
Loan Group of the aggregate Stated Principal Balance of each Mortgage Loan in
that Loan Group as of the Due Date occurring in the month prior to the month of
that Distribution Date (after giving effect to prepayments received in the
Prepayment Period related to such Due Date) over the aggregate Certificate
Principal Balance of the related senior certificates immediately prior to that
Distribution Date.

         AVAILABLE FUNDS: For any Distribution Date,

         are the SUM OF:

         (i) all scheduled installments of interest (net of the related Expense
Fees) and principal due on the Due Date on the Mortgage Loans in the related
Remittance Period and received by the related Determination Date, together with
any related Advances;

         (ii) all Insurance Proceeds, Liquidation Proceeds and Subsequent
Recoveries received during the preceding calendar month (in each case, net of
unreimbursed expenses incurred in connection with a liquidation or foreclosure);

         (iii) all partial or full prepayments on the Mortgage Loans received
during the related Prepayment Period together with all Compensating Interest on
those Mortgage Loans and interest paid by the Mortgagors (other than Prepayment
Interest Excess);

         (iv) with respect to the Distribution Date immediately following the
end of the Funding Period, any amounts remaining in the Pre-Funding Accounts
after giving effect to any purchase of Subsequent Mortgage Loans;

         (v) with respect to each Distribution Date during the Funding Period
and on the Distribution Date immediately following the end of the Funding
Period, any amounts withdrawn by the Trustee from the Interest Coverage Accounts
for distribution on the Certificates on such Distribution Date; and

         (vi) amounts received for the Distribution Date as the Substitution
Adjustment Amount or purchase price of a Deleted Mortgage Loan or a Mortgage
Loan repurchased by the Seller or the Master Servicer as of the Distribution
Date;

         MINUS

amounts in reimbursement for Advances previously made with respect to the
Mortgage Loans, reimbursable to the Master Servicer with respect to the Mortgage
Loans pursuant to this Agreement and, as applicable, payable by the Trustee out
of the Distribution Account pursuant to Section 3.09(b).

         The Holders of the Class P Certificates will be entitled to all
Prepayment Charges received on the Mortgage Loans and such amounts will not be
available for distribution to the Holders of any other Class of Certificates.

         BANKRUPTCY CODE: The United States Bankruptcy Reform Act of 1978, as
amended.

         BASIC PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF (i) the Principal Remittance Amount for both Loan Groups for the
Distribution Date OVER (ii) the Excess Overcollateralization Amount, if any, for
that Distribution Date.

         BOOK-ENTRY CERTIFICATES: As specified in the Preliminary Statement.

         BUSINESS DAY: Any day other than (i) a Saturday or a Sunday, or (ii) a
day on which banking institutions in the City of New York, New York, the State
of California or the city in which the Corporate Trust Office of the Trustee is
located are authorized or obligated by law or executive order to be closed.

         CAP CONTRACT A: The interest rate cap agreement between the Trustee, on
behalf of the Trust Fund, and the Cap Contract Counterparty, relating to the
Group I Certificates.

         CAP CONTRACT B: The interest rate cap agreement between the Trustee, on
behalf of the Trust Fund, and the Cap Contract Counterparty, relating to the
Group II Certificates.

         CAP CONTRACT C: The interest rate cap agreement between the Trustee, on
behalf of the Trust Fund, and the Cap Contract Counterparty, relating to the
Subordinated Certificates.

         CAP CONTRACT COUNTERPARTY:  Bear Stearns Financial Products Inc.

         CAP CONTRACTS: Cap Contract A, Cap Contract B and Cap Contract C, as
applicable.

         CERTIFICATE: Any one of the Certificates issued by the Trust Fund and
executed by the Trustee, in substantially the forms attached as exhibits.

         CERTIFICATE ACCOUNT: The separate Eligible Account or Accounts created
and maintained by the Master Servicer pursuant to Section 3.06(d) with a
depository institution in the name of the Master Servicer for the benefit of the
Trustee on behalf of Certificateholders and designated "IndyMac Bank, F.S.B., in
trust for the registered holders of Home Equity Mortgage Loan Asset-Backed
Certificates, Series INABS 2005-B."

         CERTIFICATE BALANCE: For any Certificate (other than a Class R or a
Class C Certificate) at any date, the maximum dollar amount of principal to
which the Holder of the Certificate is then entitled, such amount being equal to
the Certificate's Denomination PLUS any increases in the Certificate Balance of
such Certificate pursuant to Section 4.02 due to the receipt of Subsequent
Recoveries MINUS all distributions of principal previously made with respect
thereto and in the case of any Subordinated Certificate, reduced by any Applied
Realized Loss Amounts applicable to any such Subordinated Certificates. The
Class R and Class C Certificates have no Certificate Balance.

         CERTIFICATE GROUP: Any of the Group I Certificates or the Group II
Certificates, as applicable.

         CERTIFICATE OWNER: With respect to a Book-Entry Certificate, the Person
who is the beneficial owner of the Book-Entry Certificate. For purposes of this
Agreement, in order for a Certificate Owner to enforce any of its rights under
this Agreement, it shall first have to provide evidence of its beneficial
ownership interest in a Certificate that is reasonably satisfactory to the
Trustee, the Depositor and/or the Master Servicer, as applicable.

         CERTIFICATE REGISTER: The register maintained pursuant to Section 5.02.

         CERTIFICATEHOLDER OR HOLDER: The person in whose name a Certificate is
registered in the Certificate Register, except that, solely for the purpose of
giving any consent pursuant to this Agreement, any Certificate registered in the
name of the Depositor or any Affiliate of the Depositor is not Outstanding and
the Percentage Interest evidenced thereby shall not be taken into account in
determining whether the requisite amount of Percentage Interests necessary to
effect a consent has been obtained unless the Depositor or its Affiliates own
100% of the Percentage Interests evidenced by a Class of Certificates, in which
case the Certificates shall be Outstanding for purposes of any provision of this
Agreement requiring the consent of the Holders of Certificates of a particular
Class as a condition to the taking of any action. The Trustee and the NIM
Insurer are entitled to rely conclusively on a certification of the Depositor or
any Affiliate of the Depositor in determining which Certificates are registered
in the name of an Affiliate of the Depositor.

         CLASS: All Certificates bearing the same class designation, as
specified in the Preliminary Statement.

         CLASS A CERTIFICATES:  As specified in the Preliminary Statement.

         CLASS A PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
sum of the Group I Senior Principal Distribution Amount and the Group II Senior
Principal Distribution Amount for that Distribution Date.

         CLASS C DISTRIBUTABLE AMOUNT: On any Distribution Date, the amount that
has accrued on the Class C Certificates but that has not been distributed on the
Class C Certificates on prior Distribution Dates.

         CLASS CERTIFICATE BALANCE: For any Class as of any date of
determination, the aggregate of the Certificate Balances of all Certificates of
such Class as of that date.

         CLASS M-1 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF

(i) the SUM OF

                  (A) the aggregate Class Certificate Balance of the Class A
         Certificates (after taking into account distribution of the Class A
         Principal Distribution Amount on such Distribution Date) AND

                  (B) the Class Certificate Balance of the Class M-1
         Certificates immediately before such Distribution Date OVER

(ii) the LESSER OF

                  (A) 67.70% of the aggregate Stated Principal Balance of all of
         the Mortgage Loans as of the last day of the related Remittance Period
         (after giving effect to Principal Prepayments received in the
         Prepayment Period relating to such Distribution Date) AND

                  (B) an amount, not less than zero, equal to the aggregate
         Stated Principal Balance of all of the Mortgage Loans as of the last
         day of the related Remittance Period (after giving effect to Principal
         Prepayments received in the Prepayment Period relating to such
         Distribution Date) MINUS $4,250,000;

provided, that if on any Distribution Date, the Class M-1 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-1 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.

         CLASS M-2 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF

(i) the SUM OF

                  (A) the aggregate Class Certificate Balance of the Class A
         Certificates (after taking into account distribution of the Class A
         Principal Distribution Amount on such Distribution Date),

                  (B) the Class Certificate Balance of the Class M-1
         Certificates (after taking into account distribution of the Class M-1
         Principal Distribution Amount on such Distribution Date) AND

                  (C) the Class Certificate Balance of the Class M-2
         Certificates immediately before such Distribution Date OVER

(ii) the LESSER OF

                  (A) 73.40% of the aggregate Stated Principal Balance of all of
         the Mortgage Loans as of the last day of the related Remittance Period
         (after giving effect to Principal Prepayments received in the
         Prepayment Period relating to such Distribution Date) AND

                  (B) an amount, not less than zero, equal to the aggregate
         Stated Principal Balance of all of the Mortgage Loans as of the last
         day of the related Remittance Period (after giving effect to Principal
         Prepayments received in the Prepayment Period relating to such
         Distribution Date) MINUS $4,250,000;

provided, that if on any Distribution Date, the Class M-2 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-2 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.

         CLASS M-3 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF

(i) the SUM OF

                  (A) the aggregate Class Certificate Balance of the Class A
         Certificates (after taking into account distribution of the Class A
         Principal Distribution Amount on such Distribution Date),

                  (B) the Class Certificate Balance of the Class M-1
         Certificates (after taking into account distribution of the Class M-1
         Principal Distribution Amount on such Distribution Date),

                  (C) the Class Certificate Balance of the Class M-2
         Certificates (after taking into account distribution of the Class M-2
         Principal Distribution Amount on such Distribution Date) AND

                  (D) the Class Certificate Balance of the Class M-3
         Certificates immediately before such Distribution Date OVER

(ii) the LESSER OF

                  (A) 77.20% of the aggregate Stated Principal Balance of all of
         the Mortgage Loans as of the last day of the related Remittance Period
         (after giving effect to Principal Prepayments received in the
         Prepayment Period relating to such Distribution Date) AND

                  (B) an amount, not less than zero, equal to the aggregate
         Stated Principal Balance of all of the Mortgage Loans as of the last
         day of the related Remittance Period (after giving effect to Principal
         Prepayments received in the Prepayment Period relating to such
         Distribution Date) MINUS $4,250,000;

provided, that if on any Distribution Date, the Class M-3 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-3 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.

         CLASS M-4 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF

(i) the SUM OF

                  (A) the aggregate Class Certificate Balance of the Class A
         Certificates (after taking into account distribution of the Class A
         Principal Distribution Amount on such Distribution Date),

                  (B) the Class Certificate Balance of the Class M-1
         Certificates (after taking into account distribution of the Class M-1
         Principal Distribution Amount on such Distribution Date),

                  (C) the Class Certificate Balance of the Class M-2
         Certificates (after taking into account distribution of the Class M-2
         Principal Distribution Amount on such Distribution Date),

                  (D) the Class Certificate Balance of the Class M-3
         Certificates (after taking into account distribution of the Class M-3
         Principal Distribution Amount on such Distribution Date) AND

                  (E) the Class Certificate Balance of the Class M-4
         Certificates immediately before such Distribution Date OVER

(ii) the LESSER OF

                  (A) 80.20% of the aggregate Stated Principal Balance of all of
         the Mortgage Loans as of the last day of the related Remittance Period
         (after giving effect to Principal Prepayments received in the
         Prepayment Period relating to such Distribution Date) AND

                  (B) an amount, not less than zero, equal to the aggregate
         Stated Principal Balance of all of the Mortgage Loans as of the last
         day of the related Remittance Period (after giving effect to Principal
         Prepayments received in the Prepayment Period relating to such
         Distribution Date) MINUS $4,250,000;

provided, that if on any Distribution Date, the Class M-4 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-4 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.

         CLASS M-5 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF

(i) the SUM OF

                  (A) the aggregate Class Certificate Balance of the Class A
         Certificates (after taking into account distribution of the Class A
         Principal Distribution Amount on such Distribution Date),

                  (B) the Class Certificate Balance of the Class M-1
         Certificates (after taking into account distribution of the Class M-1
         Principal Distribution Amount on such Distribution Date),

                  (C) the Class Certificate Balance of the Class M-2
         Certificates (after taking into account distribution of the Class M-2
         Principal Distribution Amount on such Distribution Date),

                  (D) the Class Certificate Balance of the Class M-3
         Certificates (after taking into account distribution of the Class M-3
         Principal Distribution Amount on such Distribution Date),

                  (E) the Class Certificate Balance of the Class M-4
         Certificates (after taking into account distribution of the Class M-4
         Principal Distribution Amount on such Distribution Date) AND

                  (F) the Class Certificate Balance of the Class M-5
         Certificates immediately before such Distribution Date OVER

(ii) the LESSER OF

                  (A) 83.00% of the aggregate Stated Principal Balance of all of
         the Mortgage Loans as of the last day of the related Remittance Period
         (after giving effect to Principal Prepayments received in the
         Prepayment Period relating to such Distribution Date) AND

                  (B) an amount, not less than zero, equal to the aggregate
         Stated Principal Balance of all of the Mortgage Loans as of the last
         day of the related Remittance Period (after giving effect to Principal
         Prepayments received in the Prepayment Period relating to such
         Distribution Date) MINUS $4,250,000;

provided, that if on any Distribution Date, the Class M-5 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-5 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.

         CLASS M-6 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF

(i) the SUM OF

                  (A) the aggregate Class Certificate Balance of the Class A
         Certificates (after taking into account distribution of the Class A
         Principal Distribution Amount on such Distribution Date),

                  (B) the Class Certificate Balance of the Class M-1
         Certificates (after taking into account distribution of the Class M-1
         Principal Distribution Amount on such Distribution Date),

                  (C) the Class Certificate Balance of the Class M-2
         Certificates (after taking into account distribution of the Class M-2
         Principal Distribution Amount on such Distribution Date),

                  (D) the Class Certificate Balance of the Class M-3
         Certificates (after taking into account distribution of the Class M-3
         Principal Distribution Amount on such Distribution Date),

                  (E) the Class Certificate Balance of the Class M-4
         Certificates (after taking into account distribution of the Class M-4
         Principal Distribution Amount on such Distribution Date),

                  (F) the Class Certificate Balance of the Class M-5
         Certificates (after taking into account distribution of the Class M-5
         Principal Distribution Amount on such Distribution Date) AND

                  (G) the Class Certificate Balance of the Class M-6
         Certificates immediately before such Distribution Date OVER

(ii) the LESSER OF

                  (A) 86.00% of the aggregate Stated Principal Balance of all of
         the Mortgage Loans as of the last day of the related Remittance Period
         (after giving effect to Principal Prepayments received in the
         Prepayment Period relating to such Distribution Date) AND

                  (B) an amount, not less than zero, equal to the aggregate
         Stated Principal Balance of all of the Mortgage Loans as of the last
         day of the related Remittance Period (after giving effect to Principal
         Prepayments received in the Prepayment Period relating to such
         Distribution Date) MINUS $4,250,000;

provided, that if on any Distribution Date, the Class M-6 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-6 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.

         CLASS M-7 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF

(i) the SUM OF

                  (A) the aggregate Class Certificate Balance of the Class A
         Certificates (after taking into account distribution of the Class A
         Principal Distribution Amount on such Distribution Date),

                  (B) the Class Certificate Balance of the Class M-1
         Certificates (after taking into account distribution of the Class M-1
         Principal Distribution Amount on such Distribution Date),
                  (C) the Class Certificate Balance of the Class M-2
         Certificates (after taking into account distribution of the Class M-2
         Principal Distribution Amount on such Distribution Date),

                  (D) the Class Certificate Balance of the Class M-3
         Certificates (after taking into account distribution of the Class M-3
         Principal Distribution Amount on such Distribution Date),

                  (E) the Class Certificate Balance of the Class M-4
         Certificates (after taking into account distribution of the Class M-4
         Principal Distribution Amount on such Distribution Date),

                  (F) the Class Certificate Balance of the Class M-5
         Certificates (after taking into account distribution of the Class M-5
         Principal Distribution Amount on such Distribution Date),

                  (G) the Class Certificate Balance of the Class M-6
         Certificates (after taking into account distribution of the Class M-6
         Principal Distribution Amount on such Distribution Date) AND

                  (H) the Class Certificate Balance of the Class M-7
         Certificates immediately before such Distribution Date OVER

(ii) the LESSER OF

                  (A) 88.70% of the aggregate Stated Principal Balance of all of
         the Mortgage Loans as of the last day of the related Remittance Period
         (after giving effect to Principal Prepayments received in the
         Prepayment Period relating to such Distribution Date) AND

                  (B) an amount, not less than zero, equal to the aggregate
         Stated Principal Balance of all of the Mortgage Loans as of the last
         day of the related Remittance Period (after giving effect to Principal
         Prepayments received in the Prepayment Period relating to such
         Distribution Date) MINUS $4,250,000;

provided, that if on any Distribution Date, the Class M-7 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-7 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.

         CLASS M-8 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF

(i) the SUM OF

                  (A) the aggregate Class Certificate Balance of the Class A
         Certificates (after taking into account distribution of the Class A
         Principal Distribution Amount on such Distribution Date),

                  (B) the Class Certificate Balance of the Class M-1
         Certificates (after taking into account distribution of the Class M-1
         Principal Distribution Amount on such Distribution Date),

                  (C) the Class Certificate Balance of the Class M-2
         Certificates (after taking into account distribution of the Class M-2
         Principal Distribution Amount on such Distribution Date),

                  (D) the Class Certificate Balance of the Class M-3
         Certificates (after taking into account distribution of the Class M-3
         Principal Distribution Amount on such Distribution Date),

                  (E) the Class Certificate Balance of the Class M-4
         Certificates (after taking into account distribution of the Class M-4
         Principal Distribution Amount on such Distribution Date),

                  (F) the Class Certificate Balance of the Class M-5
         Certificates (after taking into account distribution of the Class M-5
         Principal Distribution Amount on such Distribution Date),

                  (G) the Class Certificate Balance of the Class M-6
         Certificates (after taking into account distribution of the Class M-6
         Principal Distribution Amount on such Distribution Date),

                  (H) the Class Certificate Balance of the Class M-7
         Certificates (after taking into account distribution of the Class M-7
         Principal Distribution Amount on such Distribution Date) AND

                  (I) the Class Certificate Balance of the Class M-8
         Certificates immediately before such Distribution Date OVER

(ii) the LESSER OF

                  (A) 90.80% of the aggregate Stated Principal Balance of all of
         the Mortgage Loans as of the last day of the related Remittance Period
         (after giving effect to Principal Prepayments received in the
         Prepayment Period relating to such Distribution Date) AND

                  (B) an amount, not less than zero, equal to the aggregate
         Stated Principal Balance of all of the Mortgage Loans as of the last
         day of the related Remittance Period (after giving effect to Principal
         Prepayments received in the Prepayment Period relating to such
         Distribution Date) MINUS $4,250,000;

provided, that if on any Distribution Date, the Class M-8 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-8 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.

         CLASS M-9 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the
EXCESS OF

(i) the SUM OF

                  (A) the aggregate Class Certificate Balance of the Class A
         Certificates (after taking into account distribution of the Class A
         Principal Distribution Amount on such Distribution Date),

                  (B) the Class Certificate Balance of the Class M-1
         Certificates (after taking into account distribution of the Class M-1
         Principal Distribution Amount on such Distribution Date),

                  (C) the Class Certificate Balance of the Class M-2
         Certificates (after taking into account distribution of the Class M-2
         Principal Distribution Amount on such Distribution Date),

                  (D) the Class Certificate Balance of the Class M-3
         Certificates (after taking into account distribution of the Class M-3
         Principal Distribution Amount on such Distribution Date),

                  (E) the Class Certificate Balance of the Class M-4
         Certificates (after taking into account distribution of the Class M-4
         Principal Distribution Amount on such Distribution Date),

                  (F) the Class Certificate Balance of the Class M-5
         Certificates (after taking into account distribution of the Class M-5
         Principal Distribution Amount on such Distribution Date),

                  (G) the Class Certificate Balance of the Class M-6
         Certificates (after taking into account distribution of the Class M-6
         Principal Distribution Amount on such Distribution Date),

                  (H) the Class Certificate Balance of the Class M-7
         Certificates (after taking into account distribution of the Class M-7
         Principal Distribution Amount on such Distribution Date),

                   (I) the Class Certificate Balance of the Class M-8
         Certificates (after taking into account distribution of the Class M-8
         Principal Distribution Amount on such Distribution Date) AND

                  (J) the Class Certificate Balance of the Class M-9
         Certificates immediately before such Distribution Date OVER

(ii) the LESSER OF

                  (A) 92.90% of the aggregate Stated Principal Balance of all of
         the Mortgage Loans as of the last day of the related Remittance Period
         (after giving effect to Principal Prepayments received in the
         Prepayment Period relating to such Distribution Date) AND

                  (B) an amount, not less than zero, equal to the aggregate
         Stated Principal Balance of all of the Mortgage Loans as of the last
         day of the related Remittance Period (after giving effect to Principal
         Prepayments received in the Prepayment Period relating to such
         Distribution Date) MINUS $4,250,000;

provided, that if on any Distribution Date, the Class M-9 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-9 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.

         CLASS M-10 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date,
the EXCESS OF

(i) the SUM OF

                  (A) the aggregate Class Certificate Balance of the Class A
         Certificates (after taking into account distribution of the Class A
         Principal Distribution Amount on such Distribution Date),

                  (B) the Class Certificate Balance of the Class M-1
         Certificates (after taking into account distribution of the Class M-1
         Principal Distribution Amount on such Distribution Date),

                  (C) the Class Certificate Balance of the Class M-2
         Certificates (after taking into account distribution of the Class M-2
         Principal Distribution Amount on such Distribution Date),

                  (D) the Class Certificate Balance of the Class M-3
         Certificates (after taking into account distribution of the Class M-3
         Principal Distribution Amount on such Distribution Date),

                  (E) the Class Certificate Balance of the Class M-4
         Certificates (after taking into account distribution of the Class M-4
         Principal Distribution Amount on such Distribution Date),

                  (F) the Class Certificate Balance of the Class M-5
         Certificates (after taking into account distribution of the Class M-5
         Principal Distribution Amount on such Distribution Date),

                  (G) the Class Certificate Balance of the Class M-6
         Certificates (after taking into account distribution of the Class M-6
         Principal Distribution Amount on such Distribution Date),

                  (H) the Class Certificate Balance of the Class M-7
         Certificates (after taking into account distribution of the Class M-7
         Principal Distribution Amount on such Distribution Date),

                  (I) the Class Certificate Balance of the Class M-8
         Certificates (after taking into account distribution of the Class M-8
         Principal Distribution Amount on such Distribution Date),

                  (J) the Class Certificate Balance of the Class M-9
         Certificates (after taking into account distribution of the Class M-9
         Principal Distribution Amount on such Distribution Date) AND

                  (K) the Class Certificate Balance of the Class M-10
         Certificates immediately before such Distribution Date OVER

(ii) the LESSER OF

                  (A) 94.40% of the aggregate Stated Principal Balance of all of
         the Mortgage Loans as of the last day of the related Remittance Period
         (after giving effect to Principal Prepayments received in the
         Prepayment Period relating to such Distribution Date) AND

                  (B) an amount, not less than zero, equal to the aggregate
         Stated Principal Balance of all of the Mortgage Loans as of the last
         day of the related Remittance Period (after giving effect to Principal
         Prepayments received in the Prepayment Period relating to such
         Distribution Date) MINUS $4,250,000;

provided, that if on any Distribution Date, the Class M-10 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-10 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.

         CLASS M-11 PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date,
the EXCESS OF

(i) the SUM OF

                  (A) the aggregate Class Certificate Balance of the Class A
         Certificates (after taking into account distribution of the Class A
         Principal Distribution Amount on such Distribution Date),

                  (B) the Class Certificate Balance of the Class M-1
         Certificates (after taking into account distribution of the Class M-1
         Principal Distribution Amount on such Distribution Date),

                  (C) the Class Certificate Balance of the Class M-2
         Certificates (after taking into account distribution of the Class M-2
         Principal Distribution Amount on such Distribution Date),

                  (D) the Class Certificate Balance of the Class M-3
         Certificates (after taking into account distribution of the Class M-3
         Principal Distribution Amount on such Distribution Date),

                  (E) the Class Certificate Balance of the Class M-4
         Certificates (after taking into account distribution of the Class M-4
         Principal Distribution Amount on such Distribution Date),

                  (F) the Class Certificate Balance of the Class M-5
         Certificates (after taking into account distribution of the Class M-5
         Principal Distribution Amount on such Distribution Date),

                  (G) the Class Certificate Balance of the Class M-6
         Certificates (after taking into account distribution of the Class M-6
         Principal Distribution Amount on such Distribution Date),

                  (H) the Class Certificate Balance of the Class M-7
         Certificates (after taking into account distribution of the Class M-7
         Principal Distribution Amount on such Distribution Date),

                  (I) the Class Certificate Balance of the Class M-8
         Certificates (after taking into account distribution of the Class M-8
         Principal Distribution Amount on such Distribution Date),

                  (J) the Class Certificate Balance of the Class M-9
         Certificates (after taking into account distribution of the Class M-9
         Principal Distribution Amount on such Distribution Date),

                  (K) the Class Certificate Balance of the Class M-10
         Certificates (after taking into account distribution of the Class M-10
         Principal Distribution Amount on such Distribution Date) AND

                  (L) the Class Certificate Balance of the Class M-11
         Certificates immediately before such Distribution Date OVER

(ii) the LESSER OF

                  (A) 96.40% of the aggregate Stated Principal Balance of all of
         the Mortgage Loans as of the last day of the related Remittance Period
         (after giving effect to Principal Prepayments received in the
         Prepayment Period relating to such Distribution Date) AND

                  (B) an amount, not less than zero, equal to the aggregate
         Stated Principal Balance of all of the Mortgage Loans as of the last
         day of the related Remittance Period (after giving effect to Principal
         Prepayments received in the Prepayment Period relating to such
         Distribution Date) MINUS $4,250,000;

provided, that if on any Distribution Date, the Class M-11 Certificates are the
only Class of Subordinated Certificates outstanding, the Class M-11 Principal
Distribution Amount shall equal the lesser of the Class Certificate Balance of
such Class immediately prior to such Distribution Date and the Principal
Distribution Amount for such Distribution Date.

         CLASS R CERTIFICATE: A certificate representing the beneficial
ownership of the Class R-I Interest, Class R-II Interest and Class R-III
Interest.

         CLASS R-I INTEREST:  The uncertificated residual interest in REMIC I.

         CLASS R-II INTEREST:  The uncertificated residual interest in REMIC II.

         CLASS R-III INTEREST: The uncertificated residual interest in REMIC
III.

         CLOSING DATE: June 17, 2005.

         CLOSING DATE MORTGAGE LOAN: Each Mortgage Loan sold and assigned by the
Seller to the Trust Fund on the Closing Date.

         CODE: The United States Internal Revenue Code of 1986, including any
successor or amendatory provisions.

         COLLATERAL VALUE: For any Mortgage Loan, the Collateral Value of the
related Mortgaged Property shall be, other than for Refinance Loans, the LESSER
OF (i) the appraised value determined in an appraisal obtained by the originator
at origination of the Mortgage Loan AND (ii) the sales price for the related
Mortgaged Property. In the case of a Refinance Loan, the Collateral Value of the
related Mortgaged Property is its appraised value determined in an appraisal
obtained at the time of refinancing.

         COLLECTION ACCOUNT: The separate Eligible Account or Accounts created
and maintained by the Master Servicer pursuant to Section 3.06(c) with a
depository institution in the name of the Master Servicer for the benefit of the
Trustee on behalf of the Certificateholders and designated "IndyMac Bank,
F.S.B., in trust for the registered holders of Home Equity Mortgage Loan
Asset-Backed Certificates, Series INABS 2005-B."

         COMPENSATING INTEREST: For any Distribution Date, the LESSER OF (i) any
Prepayment Interest Shortfalls AND (ii) 0.125% multiplied by one-twelfth
multiplied by the aggregate Stated Principal Balance of the Mortgage Loans as of
the first day of the prior month.

         CORPORATE TRUST OFFICE: The designated office of the Trustee in the
State of California at which at any particular time its corporate trust business
with respect to this Agreement is administered, which office at the date of the
execution of this Agreement is located at 1761 East St. Andrew Place, Santa Ana,
California 92705, Attn: Corporate Trust Administration IN05S2 (IndyMac ABS,
Inc., Home Equity Mortgage Loan Asset-Backed Trust, Series INABS 2005-B),
facsimile no. (714) 247-6285 and which is the address to which notices to and
correspondence with the Trustee should be directed.

         CORRESPONDING CERTIFICATE: With respect to each REMIC II Regular
Interest, as follows:

      REMIC II Regular Interest                  Class
------------------------------------          ----------
REMIC II Regular Interest II-LTAI1               A-I-1
REMIC II Regular Interest II-LTAII1             A-II-1
REMIC II Regular Interest II-LTAII2             A-II-2
REMIC II Regular Interest II-LTAII3             A-II-3
REMIC II Regular Interest II-LTM1                 M-1
REMIC II Regular Interest II-LTM2                 M-2
REMIC II Regular Interest II-LTM3                 M-3
REMIC II Regular Interest II-LTM4                 M-4
REMIC II Regular Interest II-LTM5                 M-5
REMIC II Regular Interest II-LTM6                 M-6
REMIC II Regular Interest II-LTM7                 M-7
REMIC II Regular Interest II-LTM8                 M-8
REMIC II Regular Interest II-LTM9                 M-9
REMIC II Regular Interest II-LTM10               M-10
REMIC II Regular Interest II-LTM11               M-11
REMIC II Regular Interest II-LTP                   P

         CREDIT ENHANCEMENT PERCENTAGE: For any Distribution Date and any Class
of Class A and Subordinated Certificates, the percentage obtained by dividing
(x) the SUM OF (i) the aggregate Class Certificate Balances of all Classes of
Class A and Subordinated Certificates subordinated to such Class and (ii) the
Overcollateralization Amount (in each case taking into account the distributions
of the Principal Distribution Amount for such Distribution Date) by (y) the
aggregate Stated Principal Balance of the Mortgage Loans as of the last day of
the related Remittance Period (after giving effect to scheduled payments of
principal due during the Remittance Period, to the extent received or advanced,
and Principal Prepayments received in the Prepayment Period related to such
Distribution Date) and any amounts on deposit in the Pre-Funding Accounts.

         CUMULATIVE NET LOSS TRIGGER EVENT: With respect to any Distribution
Date on or after the Stepdown Date, exists if the percentage obtained by
dividing (x) the aggregate amount of Realized Losses incurred from the Cut-off
Date through the last day of the related Remittance Period (reduced by the
aggregate amount of Subsequent Recoveries received through the last day of that
Remittance Period) by (y) the aggregate Cut-off Date Principal Balance of the
Closing Date Mortgage Loans plus the Original Pre-Funded Amounts exceeds (A)
1.25% from July 2007 through June 2008, (B) 2.50% from July 2008 through June
2009, (C) 4.00% from July 2009 through June 2010, (D) 5.25% from July 2010
through June 2011 and (E) 5.75% from July 2011 and thereafter.

         CUT-OFF DATE: As to any Closing Date Mortgage Loans, June 1, 2005. As
to any Subsequent Mortgage Loans, the related Subsequent Cut-off Date.

         CUT-OFF DATE PRINCIPAL BALANCE: As to any Mortgage Loan, its Stated
Principal Balance as of the close of business on the Cut-off Date.

         DEBT SERVICE REDUCTION: For any Mortgage Loan, a reduction by a court
of competent jurisdiction, in a proceeding under the Bankruptcy Code, in the
Scheduled Payment for the Mortgage Loan that became final and non-appealable,
but not including a reduction (i) resulting from a Deficient Valuation or (ii)
that results in a permanent forgiveness of principal.

         DEFICIENT VALUATION: For any Mortgage Loan, a valuation by a court of
competent jurisdiction of the related Mortgaged Property in an amount less than
the then outstanding indebtedness under such Mortgage Loan, or any reduction in
the amount of principal to be paid in connection with any Scheduled Payment that
results in a permanent forgiveness of principal, which valuation or reduction
results from an order of the court that is final and non-appealable in a
proceeding under the Bankruptcy Code.

         DEFINITIVE CERTIFICATES: As specified in the Preliminary Statement..

         DELAYED DELIVERY CERTIFICATION: A certification substantially in the
form of Exhibit G-2.

         DELAYED DELIVERY MORTGAGE LOANS: The Closing Date Mortgage Loans
identified on the Mortgage Loan Schedule, for which neither a related Mortgage
File nor the Mortgage Note (or lost note affidavit for a lost Mortgage Note) has
been delivered to the Trustee by the Closing Date. The Depositor shall deliver
the Mortgage Files to the Trustee:

         (A) for at least 70% of the Closing Date Mortgage Loans in each Loan
Group, not later than the Closing Date; and

         (B) for the remaining 30% of the Closing Date Mortgage Loans in each
Loan Group, not later than five (5) Business Days following the Closing Date.

         To the extent that the Seller is in possession of any Mortgage File for
any Delayed Delivery Mortgage Loan, until delivery of the Mortgage File to the
Trustee as provided in Section 2.01, the Seller shall hold the files as Master
Servicer, as agent and in trust for the Trustee.

         DELETED MORTGAGE LOAN: As defined in Section 2.03(c).

         DENOMINATION: For each Certificate, the amount appearing on the face of
the Certificate as the "Initial Certificate Balance of this Certificate" or the
Percentage Interest appearing on the face of the Certificate.

         DEPOSITOR: IndyMac ABS, Inc., a Delaware corporation, or its successor
in interest.

         DEPOSITORY: The initial Depository shall be The Depository Trust
Company, the nominee of which is Cede & Co., as the registered Holder of the
Book-Entry Certificates. The Depository shall at all times be a "clearing
corporation" as defined in Section 8-102(a)(5) of the Uniform Commercial Code of
the State of New York.

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

         DETERMINATION DATE: As to any Distribution Date, the 18th day of each
month or, if that day is not a Business Day, the next Business Day, except that
if the next Business Day is less than two (2) Business Days before the related
Distribution Date, then the Determination Date shall be the Business Day
preceding the 18th day of the month.

         DISTRIBUTION ACCOUNT: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.06(f) in the name of the Trustee
for the benefit of the Certificateholders and designated "Deutsche Bank National
Trust Company in trust for registered holders of IndyMac Home Equity Mortgage
Loan Asset-Backed Certificates, Series INABS 2005-B." Funds in the Distribution
Account shall be held in trust for the Certificateholders for the uses and
purposes set forth in this Agreement.

         DISTRIBUTION ACCOUNT DEPOSIT DATE: As to any Distribution Date, 12:30
p.m. (Pacific time) on the Business Day preceding the Distribution Date.

         DISTRIBUTION DATE: The 25th day of each calendar month after the
initial issuance of the Certificates, or if that day is not a Business Day, the
next Business Day, commencing in July 2005.

         DUE DATE: For any Mortgage Loan and Distribution Date, the first day of
the month in which the Distribution Date occurs.

         ELIGIBLE ACCOUNT: Any of

         (i) an account maintained with a federal or state chartered depository
institution or trust company, the short-term unsecured debt obligations of which
(or, in the case of a depository institution or trust company that is the
principal subsidiary of a holding company, the debt obligations of the holding
company, but only if Moody's is not a Rating Agency) have the highest short-term
ratings of each Rating Agency at the time any amounts are held on deposit
therein, or

         (ii) [RESERVED], or

         (iii) a trust account or accounts maintained with the trust department
of a federal or state chartered depository institution or trust company, acting
in its fiduciary capacity, or

         (iv) any other account acceptable to each Rating Agency without
reduction or withdrawal of their then current ratings of the Certificates or any
NIM Insurer-guaranteed NIM Notes, as evidenced by a letter from each Rating
Agency to the Trustee and the NIM Insurer.

         Eligible Accounts may bear interest, and may include, if otherwise
qualified under this definition, accounts maintained with the Trustee.

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

         ERISA-QUALIFYING UNDERWRITING: A best efforts or firm commitment
underwriting or private placement that meets the requirements of an
Underwriter's Exemption.

         ERISA-RESTRICTED CERTIFICATE: As specified in the Preliminary
Statement.

         ESCROW ACCOUNT: The Eligible Account or Accounts established and
maintained pursuant to Section 3.07(a).

         EVENT OF DEFAULT: As defined in Section 7.01.

         EXCESS OVERCOLLATERALIZATION AMOUNT: For any Distribution Date, the
EXCESS OF (a) the Overcollateralization Amount on such Distribution Date OVER
(b) the Overcollateralization Target Amount for such Distribution Date.

         EXCESS PROCEEDS: For any Liquidated Mortgage Loan, the EXCESS OF

         (a) all Liquidation Proceeds from the Mortgage Loan received in the
calendar month in which the Mortgage Loan became a Liquidated Mortgage Loan, net
of any amounts previously reimbursed to the Master Servicer as Nonrecoverable
Advances with respect to the Mortgage Loan pursuant to Section 3.09(a)(ii), OVER

         (b) the SUM OF (i) the unpaid principal balance of the Liquidated
Mortgage Loan as of the Due Date in the month in which the Mortgage Loan became
a Liquidated Mortgage Loan PLUS (ii) accrued interest at the Mortgage Rate from
the Due Date for which interest was last paid or advanced (and not reimbursed)
to Certificateholders up to the Due Date applicable to the Distribution Date
following the calendar month during which the liquidation occurred.

         EXCESS RESERVE FUND ACCOUNT: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.06(d) in the name of the Trustee
for the benefit of the Certificateholders and designated "Deutsche Bank National
Trust Company in trust for registered holders of IndyMac Home Equity Mortgage
Loan Asset-Backed Trust, Series INABS 2005-B." Funds in the Excess Reserve Fund
Account shall be held in trust for the Certificateholders for the uses and
purposes set forth in this Agreement. The Excess Reserve Fund Account will not
be an asset of any REMIC.

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

         EXPENSE AMOUNT: For any Distribution Date and Loan Group, the PRODUCT
OF the Expense Fee Rate and the SUM OF the Stated Principal Balances of the
Mortgage Loans in that Loan Group as of the Due Date occurring in the prior
calendar month.

         EXPENSE FEES: As to each Mortgage Loan, the SUM OF the Master Servicing
Fee and Trustee Fee.

         EXPENSE FEE RATE: As to each Mortgage Loan, the SUM OF the Master
Servicing Fee Rate and the Trustee Fee Rate.

         EXTRA PRINCIPAL DISTRIBUTION AMOUNT: As of any Distribution Date, the
LESSER OF (x) the Total Monthly Excess Spread for that Distribution Date and (y)
the Overcollateralization Deficiency for that Distribution Date.

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

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

         FITCH: Fitch, Inc., or any successor thereto. If Fitch is designated as
a Rating Agency in the Preliminary Statement, for purposes of Section 10.05(b)
the address for notices to Fitch shall be Fitch, Inc., One State Street Plaza,
New York, New York 10004, Attention: MBS Monitoring - IndyMac INABS 2005-B, or
any other address Fitch furnishes to the Depositor and the Master Servicer.

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

         FUNDING PERIOD: The period beginning on the Closing Date and ending on
the earlier to occur of (i) the date upon which the amount on deposit in the
Pre-Funding Accounts has been reduced to zero or (ii) July 17, 2005.

         GROUP I CERTIFICATES: As specified in the Preliminary Statement.

         GROUP I INTEREST COVERAGE ACCOUNT: The account established and
maintained pursuant to Section 3.23, which account contains an amount, to be
paid by the Depositor to the Trustee on the Closing Date, that represents
interest received or advanced on the Group I Mortgage Loans.

         GROUP I INTEREST REMITTANCE AMOUNT: For any Distribution Date, the
portion of the Available Funds with respect to Loan Group I that is attributable
to interest or amounts withdrawn from the Group I Interest Coverage Account.

         GROUP I MAXIMUM CAP: For each Class of Group I Certificates as of any
Distribution Date, the annual rate equal to the PRODUCT OF:

                  (i) a fraction, expressed as a percentage, the numerator of
         which is (1) the maximum amount of interest that may accrue on the
         Group I Mortgage Loans on the Due Date occurring in the prior calendar
         month calculated using the Maximum Mortgage Rates on the Group I
         Mortgage Loans, minus (2) the Expense Amount with respect to Loan Group
         I for that Distribution Date and the denominator of which is the sum of
         (1) the aggregate Stated Principal Balances of the Group I Mortgage
         Loans as of the Due Date occurring in the prior calendar month, which
         balances give effect to scheduled payments of principal due during the
         related Remittance Period, to the extent received or advanced, and to
         principal prepayments received during the Prepayment Period related to
         that prior due date (or as of the cut-off date for the first
         Distribution Date) and (2) any amounts on deposit in the Group I
         Pre-Funding Account AND

                   (ii) a fraction whose numerator is 360 and whose denominator
         is the actual number of days in the related Interest Accrual Period.
         GROUP I MORTGAGE LOANS: The Mortgage Loans in Loan Group I.

         GROUP I NET WAC CAP: For each Class of Group I Certificates as of any
Distribution Date, the annual rate equal to the PRODUCT OF:

                  (i) a fraction whose numerator is 360 and whose denominator is
         the actual number of days in the related Interest Accrual Period AND

                  (ii) a fraction whose numerator is (1) the amount of interest
         which accrued on the Group I Mortgage Loans on the Due Date occurring
         in the prior calendar month, MINUS (2) the Expense Amount with respect
         to the Group I Mortgage Loans for that Distribution Date and whose
         denominator is the SUM OF (1) the aggregate Stated Principal Balance of
         the Group I Mortgage Loans as of the Due Date occurring in the prior
         calendar month, which balances give effect to scheduled payments of
         principal due during the related Remittance Period, to the extent
         received or advanced, and to principal prepayments received during the
         Prepayment Period related to that prior due date (or as of the Cut-off
         Date for the first Distribution Date) and (2) any amounts on deposit in
         the Group I Pre-Funding Account.

         For federal income tax purposes, the equivalent of the foregoing shall
be expressed as the weighted average of the REMIC II Remittance Rate on REMIC II
Regular Interest II-LT1GRP, weighted on the basis of the Uncertificated Balance
of such REMIC II Regular Interest.

         GROUP I PRE-FUNDING ACCOUNT: The account established and maintained
pursuant to Section 3.22.

         GROUP I PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date is the
PRODUCT OF:

                           (x) the Principal Distribution Amount for such
                  Distribution Date AND

                           (y) a fraction, the numerator of which is the
                  Principal Remittance Amount for Loan Group I for that
                  Distribution Date and the denominator of which is the
                  Principal Remittance Amount for both Loan Groups for such
                  Distribution Date;

         PLUS, in the case of the Distribution Date immediately following the
         end of the Funding Period, any amounts remaining in the Group I
         Pre-Funding Account and not used by the Trustee to purchase Subsequent
         Mortgage Loans to be included in Loan Group I.

         GROUP I SENIOR PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution
Date, the EXCESS OF

         (A) the aggregate Class Certificate Balance of the Group I Certificates
immediately before that Distribution Date OVER

         (B) the LESSER of (x) 61.40% of the aggregate Stated Principal Balance
of all of the Group I Mortgage Loans as of the last day of the related
Remittance Period (after giving effect to Principal Prepayments received in the
Prepayment Period related to such Distribution Date) and (y) an amount, not less
than zero, equal to the aggregate Stated Principal Balance of all of the Group I
Mortgage Loans as of the last day of the related Remittance Period (after giving
effect to Principal Prepayments received in the Prepayment Period related to
that Distribution Date) MINUS $2,136,673.

         GROUP II CERTIFICATES: As specified in the Preliminary Statement.

         GROUP II INTEREST COVERAGE ACCOUNT: The account established and
maintained pursuant to Section 3.23, which account contains an amount, to be
paid by the Depositor to the Trustee on the Closing Date, that represents
interest received or advanced on the Group II Mortgage Loans.

         GROUP II INTEREST REMITTANCE AMOUNT: For any Distribution Date, the
portion of the Available Funds with respect to Loan Group II that is
attributable to interest or withdrawn from the Group II Interest Coverage
Account.

         GROUP II MAXIMUM CAP: For each Class of Group II Certificates as of any
Distribution Date, the annual rate equal to the PRODUCT OF:

                  (i) a fraction, expressed as a percentage, the numerator of
         which is (1) the maximum amount of interest that may accrue on the
         Group II Mortgage Loans on the Due Date occurring in the prior calendar
         month calculated using the Maximum Mortgage Rates on the Group II
         Mortgage Loans, minus (2) the Expense Amount with respect to Loan Group
         II for that Distribution Date and the denominator of which is the sum
         of (1) the aggregate Stated Principal Balances of the Group II Mortgage
         Loans as of the due date occurring in the prior calendar month, which
         balances give effect to scheduled payments of principal due during the
         related Remittance Period, to the extent received or advanced, and to
         principal prepayments received during the Prepayment Period related to
         that prior due date (or as of the Cut-off Date for the first
         Distribution Date) and (2) any amounts on deposit in the Group II
         Pre-Funding Account AND

                  (ii) a fraction whose numerator is 360 and whose denominator
         is the actual number of days in the related Interest Accrual Period.

         GROUP II MORTGAGE LOANS:  The Mortgage Loans in Loan Group II.

         GROUP II NET WAC CAP: For each Class of Group II Certificates as of any
Distribution Date, the annual rate equal to the PRODUCT OF:

                  (i) a fraction whose numerator is 360 and whose denominator is
         the actual number of days in the related Interest Accrual Period AND

                  (ii) a fraction whose numerator is (1) the amount of interest
         which accrued on the Group II Mortgage Loans on the Due Date occurring
         in the prior calendar month, MINUS (2) the Expense Amount with respect
         to the Group II Mortgage Loans for that Distribution Date and whose
         denominator is the SUM OF (1) the aggregate Stated Principal Balance of
         the Group II Mortgage Loans as of the Due Date occurring in the prior
         calendar month, which balances give effect to scheduled payments of
         principal due during the related Remittance Period, to the extent
         received or advanced, and to principal prepayments received during the
         Prepayment Period related to that prior due date (or as of the Cut-off
         Date for the first Distribution Date) and (2) any amounts on deposit in
         the Group II Pre-Funding Account.

         For federal income tax purposes, the equivalent of the foregoing shall
be expressed as the weighted average of the REMIC II Remittance Rate on REMIC II
Regular Interest II-LT2GRP, weighted on the basis of the Uncertificated Balance
of such REMIC II Regular Interest.

         GROUP II PRE-FUNDING ACCOUNT: The account established and maintained
pursuant to Section 3.22.

         GROUP II PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date is
the PRODUCT OF:

                  (x) the Principal Distribution Amount for such Distribution
         Date AND

                  (y) a fraction, the numerator of which is the Principal
         Remittance Amount for Loan Group II for that Distribution Date and the
         denominator of which is the Principal Remittance Amount for both Loan
         Groups for such Distribution Date;

PLUS, in the case of the Distribution Date immediately following the end of the
Funding Period, any amounts remaining in the Group II Pre-Funding Account and
not used by the Trustee to purchase Subsequent Mortgage Loans to be included in
Loan Group II.

         GROUP II SENIOR PRINCIPAL DISTRIBUTION AMOUNT is the EXCESS OF

                  (A) the aggregate Class Certificate Balance of the Group II
         Certificates immediately before that Distribution Date OVER

                  (B) the lesser of (x) 61.40% of the aggregate Stated Principal
         Balances of all the Group II Mortgage Loans as of the last day of the
         related Remittance Period (after giving effect to Principal Prepayments
         received in the Prepayment Period related to that Distribution Date)
         and (y) an amount, not less than zero, equal to the aggregate Stated
         Principal Balance of all the Group II Mortgage Loans as of the last day
         of the related Remittance Period (after giving effect to Principal
         Prepayments received in the Prepayment Period related to that
         Distribution Date) MINUS $2,113,327.

         INDENTURE: The indenture, or document of similar import, if any,
pursuant to which any NIM Notes are issued.

         INDEX: As to each adjustable-rate Mortgage Loan, the index from time to
time in effect for the adjustment of the Mortgage Rate set forth as such on the
related Mortgage Note.

         INDIRECT PARTICIPANT: A broker, dealer, bank, or other financial
institution or other Person that clears through or maintains a custodial
relationship with a Depository Participant.

         INITIAL GROUP I MORTGAGE LOANS: The Closing Date Mortgage Loans in Loan
Group I.

         INITIAL GROUP II MORTGAGE LOANS: The Closing Date Mortgage Loans in
Loan Group II.

         INSURANCE POLICY: For any Mortgage Loan included in the Trust Fund, any
insurance policy, including all its riders and endorsements in effect, including
any replacement policy or policies for any Insurance Policies.

         INSURANCE PROCEEDS: Proceeds paid by an insurer pursuant to any
Insurance Policy, in each case other than any amount included in such Insurance
Proceeds in respect of Insured Expenses or released to the Mortgagor.

         INSURED EXPENSES: Expenses covered by an Insurance Policy or any other
insurance policy with respect to the Mortgage Loans.

         INTEREST ACCRUAL PERIOD: For each Class of Class A and Subordinated
Certificates and the corresponding Class of lower-tier interest and any
Distribution Date, the period from the Distribution Date in the month preceding
the month in which the Distribution Date occurs to the day prior to such
Distribution Date (or in the case of the first Distribution Date, the period
from the Closing Date to the day prior to the first Distribution Date). For
purposes of computing interest accruals on each Class of Class A and
Subordinated Certificates and the corresponding Class of lower-tier interest,
each Interest Accrual Period has the actual number of days in the month and each
year is assumed to have 360 days.

         INTEREST COVERAGE ACCOUNTS: The Group I Interest Coverage Account and
the Group II Interest Coverage Account.

         LENDER PMI LOAN: Any Mortgage Loan with respect to which the related
lender rather than the related borrower acquired primary mortgage guaranty
insurance and charged the related borrower an interest premium.

         LIBOR: For any Interest Accrual Period for the LIBOR Certificates, the
rate determined by the Trustee on the related LIBOR Determination Date on the
basis of the offered rate for one-month U.S. dollar deposits that appears on
Telerate Page 3750 as of 11:00 a.m. (London time) on that date. If the rate does
not appear on Telerate Page 3750, the rate for that date will be determined on
the basis of the rates at which one-month U.S. dollar deposits are offered by
the Reference Banks at approximately 11:00 a.m. (London time) on that date to
prime banks in the London interbank market. In that case, the Trustee will
request the principal London office of each of the Reference Banks to provide a
quotation of its rate. If at least two quotations are so provided, the rate for
that date will be the arithmetic mean of the quotations (rounded upwards if
necessary to the nearest whole multiple of 1/16%). If fewer than two quotations
are provided as requested, the rate for that date will be the arithmetic mean of
the rates quoted by major banks in New York City, selected by the Master
Servicer, at approximately 11:00 a.m. (New York City time) on that date for
one-month U.S. dollar loans to leading European banks.

         LIBOR CERTIFICATES: As specified in the Preliminary Statement.

         LIBOR DETERMINATION DATE: For any Interest Accrual Period for the LIBOR
Certificates, the second London Business Day preceding the commencement of the
Interest Accrual Period.

         LIQUIDATED MORTGAGE LOAN: For any Distribution Date, a defaulted
Mortgage Loan (including any REO Property) that was liquidated in the calendar
month preceding the month of the Distribution Date and as to which the Master
Servicer has certified (in accordance with this Agreement) that it has received
all amounts it expects to receive in connection with the liquidation of the
Mortgage Loan, including the final disposition of an REO Property.

         LIQUIDATION PROCEEDS: Amounts, including Insurance Proceeds regardless
of when received, received in connection with the partial or complete
liquidation of defaulted Mortgage Loans, whether through trustee's sale,
foreclosure sale, or otherwise or amounts received in connection with any
condemnation or partial release of a Mortgaged Property, and any other proceeds
received in connection with an REO Property, less the SUM OF related
unreimbursed Master Servicing Fees, Servicing Advances and Advances.

         LOAN GROUP: Any of Loan Group I or Loan Group II, as applicable.

         LOAN GROUP I: The Mortgage Loans identified on the Mortgage Loan
Schedule as Group I Mortgage Loans.

         LOAN GROUP II: The Mortgage Loans identified on the Mortgage Loan
Schedule as Group II Mortgage Loans.

         LOAN-TO-VALUE RATIO: For any Mortgage Loan and as of any date of
determination, the fraction whose numerator is the principal balance of the
related Mortgage Loan at that date of determination and whose denominator is the
Collateral Value of the related Mortgaged Property.

         LONDON BUSINESS DAY: Any day on which dealings in deposits of United
States dollars are transacted in the London interbank market.

         LOST MORTGAGE NOTE: Any Mortgage Note the original of which was
permanently lost or destroyed and has not been replaced.

         MAJORITY IN INTEREST: As to any Class of Regular Certificates, the
Holders of Certificates of the Class evidencing, in the aggregate, at least 51%
of the Percentage Interests evidenced by all Certificates of the Class.

         MARGIN: As to each adjustable-rate Mortgage Loan, the percentage amount
on the related Mortgage Note added to the Index in calculating its Mortgage
Rate.

         MARKER RATE: With respect to the Class C Certificates and any
Distribution Date, a per annum rate equal to two (2) times the weighted average
of the REMIC II Remittance Rate for REMIC II Regular Interest II-LTAI1, REMIC II
Regular Interest I-LTAII1, REMIC II Regular Interest II-LTAII2, REMIC II Regular
Interest II-LTAII3, REMIC II Regular Interest II-LTM1, REMIC II Regular Interest
II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4,
REMIC II Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II
Regular Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II Regular
Interest II-LTM9, REMIC II Regular Interest II-LTM10, REMIC II Regular Interest
II-LTM11 and REMIC II Regular Interest II-LTZZ, with the rate on each such REMIC
II Regular Interest (other than REMIC II Regular Interest II-LTZZ) subject to a
cap equal to the LESSER OF (i) LIBOR PLUS the related Pass-Through Margin and
(ii) the related Net WAC Cap for the purpose of this calculation for such
Distribution Date and with the rate on REMIC II Regular Interest II-LTZZ subject
to a cap of zero for the purpose of this calculation; provided, however, that
solely for this purpose, calculations of the REMIC II Remittance Rate and the
related caps with respect to REMIC II Regular Interest II-LTAI1, REMIC II
Regular Interest II-LTAII1, REMIC II Regular Interest II-LTAII2, REMIC II
Regular Interest II-LTAII3, REMIC II Regular Interest II-LTM1, REMIC II Regular
Interest II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular Interest
II-LTM4, REMIC II Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6,
REMIC II Regular Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II
Regular Interest II-LTM9, REMIC II Regular Interest II-LTM10 and REMIC II
Regular Interest II-LTM11 shall be multiplied by a fraction, the numerator of
which is the actual number of days in the Interest Accrual Period and the
denominator of which is 30.

         MASTER SERVICER: IndyMac Bank, F.S.B., a federal savings bank, and its
successors and assigns, in its capacity as master servicer under this Agreement.

         MASTER SERVICER ADVANCE DATE: As to any Distribution Date, 12:30 p.m.
(Pacific time) on the Business Day preceding the Distribution Date.

         MASTER SERVICING FEE: As to each Mortgage Loan and any Distribution
Date, one month's interest at the related Master Servicing Fee Rate on the
Stated Principal Balance of the Mortgage Loan as of the Due Date in the prior
calendar month or, in the event of any payment of interest that accompanies a
Principal Prepayment in Full made by the Mortgagor, interest at the Master
Servicing Fee Rate on the Stated Principal Balance of the Mortgage Loan for the
period covered by the payment of interest, subject to reduction as provided in
Section 3.15.

         MASTER SERVICING FEE RATE: For each Mortgage Loan, 0.0035% perr annum.

         MAXIMUM II-LTZZ UNCERTIFICATED INTEREST DEFERRAL AMOUNT: With respect
to any Distribution Date, the EXCESS OF (i) accrued interest at the REMIC II
Remittance Rate applicable to REMIC II Regular Interest II-LTZZ for such
Distribution Date on a balance equal to the Uncertificated Balance of REMIC II
Regular Interest II-LTZZ MINUS the REMIC II Overcollateralization Amount, in
each case for such Distribution Date, OVER (ii) Uncertificated Interest on REMIC
II Regular Interest II-LTAI1, REMIC II Regular Interest II-LTAII1, REMIC II
Regular Interest II-LTAII2, REMIC II Regular Interest II-LTAII3, REMIC II
Regular Interest II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II Regular
Interest II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II Regular Interest
II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II Regular Interest II-LTM7,
REMIC II Regular Interest II-LTM8, REMIC II Regular Interest II-LTM9, REMIC II
Regular Interest II-LTM10 and REMIC II Regular Interest II-LTM11 for such
Distribution Date, with the rate on each such REMIC I Regular Interest subject
to a cap equal to the LESSER OF (i) LIBOR PLUS the related Pass-Through Margin
and (ii) the related Net WAC Cap; provided, however, that solely for this
purpose, calculations of the REMIC II Remittance Rate and the related caps with
respect to REMIC II Regular Interest II-LTAI1, REMIC II Regular Interest
II-LTAI1, REMIC II Regular Interest II-LTAII1, REMIC II Regular Interest
II-LTAII3, REMIC II Regular Interest II-LTM1, REMIC II Regular Interest II-LTM2,
REMIC II Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II
Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II Regular
Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II Regular Interest
II-LTM9, REMIC II Regular Interest II-LTM10 and REMIC II Regular Interest
II-LTM11 shall be multiplied by a fraction, the numerator of which is the actual
number of days in the Interest Accrual Period and the denominator of which is
30.

         MAXIMUM CAP: Any of the Group I Maximum Cap, the Group II Maximum Cap
or the Subordinated Maximum Cap, as the context requires.

         MAXIMUM MORTGAGE RATE: As to each adjustable-rate Mortgage Loan, the
percentage set forth in the related Mortgage Note as the lifetime maximum
Mortgage Rate to which such Mortgage Rate may be adjusted. As to each fixed-rate
Mortgage Loan, the related Mortgage Rate.

         MERS: Mortgage Electronic Registration Systems, Inc., a corporation
organized and existing under the laws of the State of Delaware, or any successor
thereto.

         MERS MORTGAGE LOAN: Any Mortgage Loan registered with MERS on the
MERS(R) System.

         MERS(R) SYSTEM: The system of recording transfers of mortgages
electronically that is maintained by MERS.

         MIN:  The mortgage identification number for any MERS Mortgage Loan.

         MOM LOAN: Any Mortgage Loan as to which MERS is acting as mortgagee,
solely as nominee for the originator of such Mortgage Loan and its successors
and assigns.

         MONTHLY STATEMENT: The statement prepared by the Trustee pursuant to
Section 4.03.

         MOODY'S: If Moody's Investors Service is designated as a Rating Agency
in the Preliminary Statement, for purposes of Section 10.05(b) the address for
notices to Moody's shall be Moody's Investors Service, Inc., 99 Church Street,
New York, New York 10007, Attention: Residential Loan Monitoring Group, or any
other address that Moody's furnishes to the Depositor and the Master Servicer.

         MORTGAGE: The mortgage, deed of trust, or other instrument creating a
first lien on an estate in fee simple or leasehold interest in real property
securing a Mortgage Note.

         MORTGAGE FILE: The mortgage documents listed in Section 2.01 pertaining
to a particular Mortgage Loan and any additional documents delivered to the
Trustee to be added to the Mortgage File pursuant to this Agreement.

         MORTGAGE LOANS: Such of the Closing Date Mortgage Loans and Subsequent
Mortgage Loans transferred and assigned to the Trustee pursuant to this
Agreement, as from time to time are held as a part of the Trust Fund (including
any REO Property), the Mortgage Loans so held being identified on the Mortgage
Loan Schedule, notwithstanding foreclosure or other acquisition of title of the
related Mortgaged Property.

         MORTGAGE LOAN SCHEDULE: As of any date, the list of Mortgage Loans in
Schedule I (as supplemented by each schedule of Subsequent Mortgage Loans)
included in the Trust Fund on such date. The Mortgage Loan Schedule shall be
prepared by the Seller and shall contain the following information with respect
to each Mortgage Loan by Loan Group and in the aggregate:

               (i)         the loan number;
              (ii)         the Mortgagor's name and the street address of the
                           Mortgaged Property, including the zip code;
             (iii)         the maturity date;
              (iv)         the original principal  balance;
               (v)         the Cut-off Date Principal Balance or Subsequent
                           Cut-off Date Principal Balance, as applicable;
              (vi)         the first payment date of the Mortgage Loan;
             (vii)         the Scheduled Payment in effect as of the applicable
                           Cut-off Date;
            (viii)         the Loan-to-Value Ratio at origination;
              (ix)         a code indicating whether the residential dwelling at
                           the time of origination was represented to be
                           owner-occupied;
               (x)         a code indicating whether the residential dwelling is
                           either (a) a detached single family dwelling, (b) a
                           townhouse, (c) a dwelling in a PUD, (d) a condominium
                           unit or (e) a two- to four-unit residential property;
              (xi)         the Mortgage Rate in effect immediately following:
                           (a) the applicable date of origination; and (b) the
                           applicable Cut-off Date;
             (xii)         the purpose for the Mortgage Loan;
            (xiii)         the type of documentation program pursuant to which
                           the Mortgage Loan was originated;
             (xiv)         with respect to the adjustable-rate Mortgage Loans:
                           (a) the Maximum Mortgage Rate;
                           (b) the Periodic Rate Cap;
                           (c) the Adjustment Date;
                           (d) the Margin; and
                           (e) the Index;
              (xv)         a code indicating whether the Mortgage Loan is a
                           Performance Loan;
             (xvi)         a code indicating whether the Mortgage Loan is a
                           borrower-paid mortgage insurance loan;
            (xvii)         [RESERVED];
           (xviii)         a code indicating whether the Mortgage Loan is a
                           Lender PMI Loan;
             (xix)         the coverage amount of any mortgage insurance;
              (xx)         with respect to the Lender PMI Loans, the related
                           interest premium;
             (xxi)         a code indicating whether the Mortgage Loan is a
                           Delayed Delivery Mortgage Loan;
            (xxii)         a code indicating whether the Mortgage Loan is a
                           MERS Mortgage Loan; and
           (xxiii)         A code indicating the term, if any, of a Prepayment
                           Charge.

The schedule shall also state the total of the amounts described under (v) above
for all of the Mortgage Loans in each Loan Group and in the aggregate.

         MORTGAGE NOTE: The original executed note or other evidence of the
indebtedness of a Mortgagor under a Mortgage Loan.

         MORTGAGE RATE: The annual rate of interest borne by a Mortgage Note
from time to time MINUS any interest premium if the applicable Mortgage Note
relates to a Lender PMI Loan, if any.

         MORTGAGED PROPERTY: The underlying property securing a Mortgage Loan.

         MORTGAGOR: The obligors on a Mortgage Note.

         NET PREPAYMENT INTEREST SHORTFALL: For any Distribution Date and Loan
Group, the EXCESS OF the Prepayment Interest Shortfalls for such Loan Group for
such Distribution Date OVER the SUM OF (i) the Compensating Interest for such
Loan Group and Distribution Date and (ii) the EXCESS OF the Compensating
Interest for the other Loan Group over the Prepayment Interest Shortfalls for
such other Loan Group.

         NET WAC CAP: Any of the Group I Net WAC Cap, the Group II Net WAC Cap
or the Subordinated Net WAC Cap, as the context requires.

         NET WAC CAP CARRY FORWARD AMOUNT: For any Class of Certificates and any
Distribution Date, an amount equal to the aggregate amount of Net WAC Shortfall
for such Class on that Distribution Date (to the extent not covered by payments
from the Excess Reserve Fund Account) PLUS any unpaid Net WAC Shortfall for such
Class from prior Distribution Dates (and interest accrued thereon at the then
applicable Pass-Through Rate on that Class of Certificates, without giving
effect to the applicable Net WAC Cap).

         NET WAC CAP PAYMENT: For any Distribution Date, any Net WAC Cap Carry
Forward Amount for that Distribution Date MINUS the amount of payments received
under the applicable Cap Contract and applied to the payment of the Net WAC Cap
Carry Forward Amount for that Distribution Date.

         NET WAC SHORTFALL: For any Class of Class A and Subordinated
Certificates and any Distribution Date on which the Pass-Through Rate for that
Class is the related Net WAC Cap, an amount equal to excess of (x) the amount of
interest such Class of Certificates would have accrued for such Distribution
Date had such Pass-Through Rate not been limited by the related Net WAC Cap over
(y) the amount of interest such Class of Certificates accrued for such
Distribution Date at the related Net WAC Cap.

         NIM INSURER: Any insurer guarantying at the request of the Seller
certain payments under the NIM Notes.

         NIM NOTES: Net interest margin securities, if any, which are secured by
the cash flow on the Class C and/or Class P Certificates.

         NONRECOVERABLE ADVANCE: Any portion of an Advance previously made or
proposed to be made by the Master Servicer, that, in the good faith judgment of
the Master Servicer, will not be ultimately recoverable by the Master Servicer
from the related Mortgagor, related Liquidation Proceeds or otherwise from
collections related to the Mortgage Loan.

         NOTICE OF FINAL DISTRIBUTION: The notice to be provided pursuant to
Section 9.02 to the effect that final distribution on any of the Certificates
shall be made only on its presentation and surrender.

         NOTIONAL AMOUNT: With respect to the Class C Certificates and any
Distribution Date, the aggregate Uncertificated Balance of the REMIC II Regular
Interests (other than REMIC II Regular Interest II-LTP) immediately prior to
Distribution Date.

         OFFERED CERTIFICATES: As specified in the Preliminary Statement.

         OFFICER'S CERTIFICATE: A certificate (i) signed by the Chairman of the
Board, the Vice Chairman of the Board, the President, a Managing Director, a
Vice President (however denominated), an Assistant Vice President, the
Treasurer, the Secretary, or one of the Assistant Treasurers or Assistant
Secretaries of the Depositor or the Master Servicer, or (ii) if provided for in
this Agreement, signed by a Servicing Officer, as the case may be, and delivered
to the Depositor and the Trustee as required by this Agreement.

         OPINION OF COUNSEL: For the interpretation or application of the REMIC
Provisions, counsel must (i) in fact be independent of the Depositor and the
Master Servicer, (ii) not have any direct financial interest in the Depositor or
the Master Servicer or in any affiliate of either, and (iii) not be connected
with the Depositor or the Master Servicer as an officer, employee, promoter,
underwriter, trustee, partner, director, or person performing similar functions.
Otherwise, Opinion of Counsel is a written opinion of counsel, who may be
counsel for the Depositor or the Master Servicer, including in-house counsel,
reasonably acceptable to the Trustee.

         OPTIONAL TERMINATION: The termination of the Trust Fund created
hereunder in connection with the purchase of the Mortgage Loans pursuant to
Section 9.01(a).

         OPTIONAL TERMINATION DATE: The Distribution Date following the last day
of the related Remittance Period on which the aggregate Stated Principal Balance
of the Mortgage Loans and any REO Property declines to less than 10% of the sum
of (i) the aggregate Stated Principal Balance of the Closing Date Mortgage Loans
as of the Cut-off Date and (ii) the sum of aggregate Stated Principal Balances
of the Subsequent Mortgage Loans as of the related Subsequent Cut-off Dates.

         ORIGINAL GROUP I PRE-FUNDED AMOUNT: The amount deposited by the
Depositor in the Group I Pre-Funding Account on the Closing Date, which amount
is $108,198,423.

         ORIGINAL GROUP II PRE-FUNDED AMOUNT. The amount deposited by the
Depositor in the Group II Pre-Funding Account on the Closing Date, which amount
is $107,016,208.

         ORIGINAL PRE-FUNDED AMOUNTS: The Original Group I Pre-Funded Amount and
the Original Group II Pre-Funded Amount, as applicable.

         OTS: The Office of Thrift Supervision.

         OUTSTANDING: For the Certificates as of any date of determination, all
Certificates theretofore executed and authenticated under this Agreement except:

                  (i) Certificates theretofore canceled by the Trustee or
         delivered to the Trustee for cancellation; and

                  (ii) Certificates in exchange for which or in lieu of which
         other Certificates have been executed and delivered by the Trustee
         pursuant to this Agreement.

         OUTSTANDING MORTGAGE LOAN: As of any Due Date, a Mortgage Loan with a
Stated Principal Balance greater than zero that was not the subject of a
Principal Prepayment in Full before the Due Date or during the Prepayment Period
related to that Due Date and that did not become a Liquidated Mortgage Loan
before the Due Date.

         OVERCOLLATERALIZATION AMOUNT: For any Distribution Date, the EXCESS OF

         (a) the aggregate Stated Principal Balance of the Mortgage Loans as of
the preceding Due Date plus any amounts on deposit in the Pre-Funding Accounts
(exclusive of any investment income therein) OVER

         (b) the Class Certificate Balance of the Class A and Subordinated
Certificates and the Class P Certificates as of that date (assuming the payment
of 100% of the Principal Remittance Amount on those Certificates on that
Distribution Date).

         OVERCOLLATERALIZATION DEFICIENCY: For any Distribution Date, the EXCESS
of (a) the Overcollateralization Target Amount applicable to such Distribution
Date OVER (b) the Overcollateralization Amount applicable to such Distribution
Date.

         OVERCOLLATERALIZATION TARGET AMOUNT: With respect to any Distribution
Date, (i) before the Stepdown Date, an amount equal to 1.800% of the sum of the
Cut-off Date Principal Balance of the Closing Date Mortgage Loans plus the
Original Pre-Funded Amounts; (ii) on or after the Stepdown Date and provided
that a Trigger Event is not in effect, an amount equal to the GREATER OF (x)
3.60% of the then current aggregate outstanding principal balance of the
Mortgage Loans as of the last day of the related Remittance Period (after giving
effect to Scheduled Payments of principal due during the related Remittance
Period to the extent received or advanced and Principal Prepayments received
during the Prepayment Period related to such Distribution Date) and (y)
$4,250,000; or (iii) if a Trigger Event is in effect, the Overcollateralization
Target Amount for the immediately preceding Distribution Date.

         OWNERSHIP INTEREST: As to any Residual Certificate, any ownership
interest in the Certificate, including any interest in the Certificate as its
Holder and any other interest therein, whether direct or indirect, legal or
beneficial.

         PASS-THROUGH MARGIN: For the Interest Accrual Period for each
Distribution Date on or before the Optional Termination Date and: the Class
A-I-1 Certificates, 2.680%; the Class A-II-1 Certificates, 2.490%; the Class
A-II-2 Certificates, 2.660%; the Class A-II-3 Certificates, 2.850%; the Class
M-1 Certificates, 3.000%; the Class M-2 Certificates, 3.050%; the Class M-3
Certificates, 3.100%; the Class M-4 Certificates, 5.000%; the Class M-5
Certificates, 3.500%; the Class M-6 Certificates, 3.750%; the Class M-7
Certificates, 4.400%; the Class M-8 Certificates, 4.500%; the Class M-9
Certificates, 5.800%; the Class M-10 Certificates, 5.800%; and the Class M-11
Certificates, 5.800%. For the Interest Accrual Period for each Distribution Date
after the Optional Termination Date, the Pass-Through Margin for the Class
A-I-1, Class A-II-1, Class A-II-2 and Class A-II-3 Certificates shall be 2 times
their initial margin and the Pass-Through Margin for each Class of Subordinated
Certificates shall be 1.5 times its initial margin.

         PASS-THROUGH RATE: With respect to any Class of Class A Certificates or
Subordinated Certificates and any Distribution Date, the LEAST OF (x) LIBOR plus
the related Pass-Through Margin for such Distribution Date, (y) the related Net
WAC Cap for such Distribution Date and (z) the related Maximum Cap for such
Distribution Date.

         With respect to the Class C Certificates and any Distribution Date, a
rate per annum equal to the percentage equivalent of a fraction, the numerator
of which is the sum of the amounts calculated pursuant to clauses (A) through
(Q) below, and the denominator of which is the aggregate Uncertificated Balance
of REMIC II Regular Interest II-LTAI1, REMIC II Regular Interest II-LTAII1,
REMIC II Regular Interest II-LTAII2, REMIC II Regular Interest II-LTAII3, REMIC
II Regular Interest II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II Regular
Interest II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II Regular Interest
II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II Regular Interest II-LTM7,
REMIC II Regular Interest II-LTM8, REMIC II Regular Interest II-LTM9, REMIC II
Regular Interest II-LTM10, REMIC II Regular Interest II-LTM11 and REMIC II
Regular Interest II-LTZZ. For purposes of calculating the Pass-Through Rate for
the Class C Certificates, the numerator is equal to the sum of the following
components:

         (A) the REMIC II Remittance Rate for REMIC II Regular Interest II-LTAA
MINUS the Marker Rate, applied to an amount equal to the Uncertificated Balance
of REMIC II Regular Interest II-LTAA;

         (B) the REMIC II Remittance Rate for REMIC II Regular Interest II-LTAI1
MINUS the Marker Rate, applied to an amount equal to the Uncertificated Balance
of REMIC II Regular Interest II-LTAI1;

         (C) the REMIC II Remittance Rate for REMIC II Regular Interest
II-LTAII1 MINUS the Marker Rate, applied to an amount equal to the
Uncertificated Balance of REMIC II Regular Interest II-LTAII1;

         (D) the REMIC II Remittance Rate for REMIC II Regular Interest
II-LTAII2 MINUS the Marker Rate, applied to an amount equal to the
Uncertificated Balance of REMIC II Regular Interest II-LTAII2;

         (E) the REMIC II Remittance Rate for REMIC II Regular Interest
II-LTAII3 MINUS the Marker Rate, applied to an amount equal to the
Uncertificated Balance of REMIC II Regular Interest II-LTAII3;

         (F) the REMIC II Remittance Rate for REMIC II Regular Interest II-LTM1
MINUS the Marker Rate, applied to an amount equal to the Uncertificated Balance
of REMIC II Regular Interest II-LTM1;

         (G) the REMIC II Remittance Rate for REMIC II Regular Interest II-LTM2
MINUS the Marker Rate, applied to an amount equal to the Uncertificated Balance
of REMIC II Regular Interest II-LTM2;

         (H) the REMIC II Remittance Rate for REMIC II Regular Interest II-LTM3
MINUS the Marker Rate, applied to an amount equal to the Uncertificated Balance
of REMIC II Regular Interest II-LTM3;

         (I) the REMIC II Remittance Rate for REMIC II Regular Interest II-LTM4
MINUS the Marker Rate, applied to an amount equal to the Uncertificated Balance
of REMIC II Regular Interest II-LTM4;

         (J) the REMIC II Remittance Rate for REMIC II Regular Interest II-LTM5
MINUS the Marker Rate, applied to an amount equal to the Uncertificated Balance
of REMIC II Regular Interest II-LTM5;

         (K) the REMIC II Remittance Rate for REMIC II Regular Interest II-LTM6
MINUS the Marker Rate, applied to an amount equal to the Uncertificated Balance
of REMIC II Regular Interest II-LTM6;

         (L) the REMIC II Remittance Rate for REMIC II Regular Interest II-LTM7
MINUS the Marker Rate, applied to an amount equal to the Uncertificated Balance
of REMIC II Regular Interest II-LTM7;

         (M) the REMIC II Remittance Rate for REMIC II Regular Interest II-LTM8
MINUS the Marker Rate, applied to an amount equal to the Uncertificated Balance
of REMIC II Regular Interest II-LTM8;

         (N) the REMIC II Remittance Rate for REMIC II Regular Interest II-LTM9
MINUS the Marker Rate, applied to an amount equal to the Uncertificated Balance
of REMIC II Regular Interest II-LTM9;

         (O) the REMIC II Remittance Rate for REMIC II Regular Interest II-LTM10
MINUS the Marker Rate, applied to an amount equal to the Uncertificated Balance
of REMIC II Regular Interest II-LTM10;
         (P) the REMIC II Remittance Rate for REMIC II Regular Interest II-LTM11
MINUS the Marker Rate, applied to an amount equal to the Uncertificated Balance
of REMIC II Regular Interest II-LTM11; and

          (Q) the REMIC II Remittance Rate for REMIC II Regular Interest II-LTZZ
MINUS the Marker Rate, applied to an amount equal to the Uncertificated Balance
of REMIC II Regular Interest II-LTZZ.

         PERCENTAGE INTEREST: As to any Certificate, the percentage interest
evidenced thereby in distributions required to be made on the related Class,
such percentage interest being stated on its face or equal to the percentage
obtained by dividing the Denomination of the Certificate by the aggregate of the
Denominations of all Certificates of the same Class.

         PERFORMANCE LOAN: Mortgage Loans that provide borrowers the potential
of margin reduction for good payment history. If, at the time of evaluation, the
related borrower has made scheduled payments in full since the origination of
the loan with a maximum of one late payment (which, however, cannot be in the
month of evaluation), the Mortgage Loan is eligible for a reduction (ranging
from 0.50% to 1.00%) in the margin used to calculate the Mortgage Rate.

         PERIODIC RATE CAP: As to any adjustable-rate Mortgage Loan and any
Adjustment Date, the maximum percentage increase or decrease to the related
Mortgage Rate on the Adjustment Date, as specified in the related Mortgage Note.

         PERMITTED INVESTMENTS: At any time, any of the following:

      (i) obligations of the United States or any agency thereof backed by the
full faith and credit of the United States;

     (ii) general obligations of or obligations guaranteed by any state of the
United States or the District of Columbia receiving the highest long-term debt
rating of each Rating Agency, or any lower rating that will not result in the
downgrading or withdrawal of the ratings then assigned to the Certificates by
the Rating Agencies, as evidenced by a signed writing delivered by each Rating
Agency;

    (iii) commercial or finance company paper that is then receiving the highest
commercial or finance company paper rating of each Rating Agency, or any lower
rating that will not result in the downgrading or withdrawal of the ratings then
assigned to the Certificates by the Rating Agencies, as evidenced by a signed
writing delivered by each Rating Agency;

     (iv) certificates of deposit, demand or time deposits, or bankers'
acceptances issued by any depository institution or trust company incorporated
under the laws of the United States or of any state thereof and subject to
supervision and examination by federal or state banking authorities; provided,
that the commercial paper or long-term unsecured debt obligations of the
depository institution or trust company (or in the case of the principal
depository institution in a holding company system, the commercial paper or
long-term unsecured debt obligations of the holding company, but only if Moody's
is not a Rating Agency) are then rated one of the two highest long-term and the
highest short-term ratings of each Rating Agency for the securities, or any
lower rating that will not result in the downgrading or withdrawal of the
ratings then assigned to the Certificates by the Rating Agencies, as evidenced
by a signed writing delivered by each Rating Agency;

      (v) demand or time deposits or certificates of deposit issued by any bank
or trust company or savings institution to the extent that the deposits are
fully insured by the FDIC;

     (vi) guaranteed reinvestment agreements issued by any bank, insurance
company, or other corporation acceptable to the Rating Agencies at the time of
the issuance of the agreements, as evidenced by a signed writing delivered by
each Rating Agency;

    (vii) repurchase obligations with respect to any security described in
clauses (i) and (ii) above, in either case entered into with a depository
institution or trust company (acting as principal) described in clause (iv)
above; provided, that such repurchase obligation would be accounted for as a
financing arrangement under generally accepted accounting principles;

   (viii) securities (other than stripped bonds, stripped coupons, or
instruments sold at a purchase price in excess of 115% of their face amount)
bearing interest or sold at a discount, issued by any corporation incorporated
under the laws of the United States or any state thereof that, at the time of
the investment, have one of the two highest ratings of each Rating Agency
(except that if the Rating Agency is Moody's, the rating shall be the highest
commercial paper rating of Moody's for the securities), or any lower rating that
will not result in the downgrading or withdrawal of the ratings then assigned to
the Certificates by the Rating Agencies, as evidenced by a signed writing
delivered by each Rating Agency;

     (ix) units of a taxable money-market portfolio having the highest rating
assigned by each Rating Agency and restricted to obligations issued or
guaranteed by the United States of America or entities whose obligations are
backed by the full faith and credit of the United States of America and
repurchase agreements collateralized by such obligations; and

      (x) any other investments bearing interest or sold at a discount
acceptable to the Rating Agencies that will not result in the downgrading or
withdrawal of the ratings then assigned to the Certificates by the Rating
Agencies, as evidenced by a signed writing delivered by each Rating Agency.

No Permitted Investment may (i) evidence the right to receive interest only
payments with respect to the obligations underlying the instrument, (ii) be sold
or disposed of before its maturity or (iii) be any obligation of the Seller or
any of its Affiliates. Any Permitted Investment shall be relatively risk free
and no options or voting rights shall be exercised with respect to any Permitted
Investment. Any Permitted Investment shall be sold or disposed of in accordance
with Statement of Financial Accounting Standards No. 140, paragraph 35c(6), in
effect as of the Closing Date.

         PERMITTED TRANSFEREE: Any Person other than

      (i) the United States, any State or political subdivision thereof, or any
agency or instrumentality of any of the foregoing;

     (ii) a foreign government, International Organization, or any agency or
instrumentality of either of the foregoing;

    (iii) an organization (except certain farmers' cooperatives described in
Section 521 of the Code) that is exempt from tax imposed by Chapter 1 of the
Code (including the tax imposed by Section 511 of the Code on unrelated business
taxable income) on any excess inclusions (as defined in Section 860E(c)(1) of
the Code) with respect to any Residual Certificate;

     (iv) rural electric and telephone cooperatives described in Section
1381(a)(2)(C) of the Code;

      (v) an "electing large partnership" as defined in Section 775 of the Code;

      (v) a Person that is not a U.S. Person; and

     (vi) any other Person so designated by the Depositor based on an Opinion of
Counsel that the Transfer of an Ownership Interest in a Residual Certificate to
the Person may cause any REMIC created under this Agreement to fail to qualify
as a REMIC at any time that the Certificates are outstanding.

         The terms "UNITED STATES," "STATE," and "INTERNATIONAL ORGANIZATION"
have the meanings in Section 7701 of the Code or successor provisions. A
corporation will not be treated as an instrumentality of the United States or of
any State or political subdivision thereof for these purposes if all of its
activities are subject to tax and, with the exception of the FHLMC, a majority
of its board of directors is not selected by such government unit.

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

         POOL STATED PRINCIPAL BALANCE: As to any Distribution Date, the
aggregate of the Stated Principal Balances of the Outstanding Mortgage Loans on
the last day of the related Remittance Period.

         PRE-FUNDING ACCOUNTS: The Group I Pre-Funding Account and the Group II
Pre-Funding Account, as applicable.

         PREPAYMENT CHARGE: As to a Mortgage Loan, any charge paid by a
Mortgagor in connection with certain partial prepayments and all prepayments in
full made within the related Prepayment Charge Period, the Prepayment Charges
with respect to each applicable Mortgage Loan so held by the Trust Fund being
identified in the Prepayment Charge Schedule.

         PREPAYMENT CHARGE PERIOD: As to any Mortgage Loan, the period of time
during which a Prepayment Charge may be imposed.

         PREPAYMENT CHARGE SCHEDULE: As of any date, the list of Prepayment
Charges included in the Trust Fund on that date (including the prepayment charge
summary attached thereto). The Prepayment Charge Schedule shall contain the
following information with respect to each Prepayment Charge:

               (i) the Mortgage Loan account number;

              (ii) a code indicating the type of Prepayment Charge;

             (iii) the state of origination in which the related Mortgaged
         Property is located;

              (iv) the first date on which a Monthly Payment is or was due under
         the related Mortgage Note;

               (v) the term of the Prepayment Charge;

              (vi) the original principal amount of the related Mortgage Loan;
         and

               (v) the Cut-off Date Principal Balance or Subsequent Cut-off Date
         Principal Balance, as applicable, of the related Mortgage Loan.

         The Prepayment Charge Schedule shall be amended from time to time by
the Master Servicer in accordance with this Agreement and a copy of the amended
schedule shall be delivered to the NIM Insurer.

         PREPAYMENT INTEREST EXCESS: As to any Principal Prepayment received by
the Master Servicer on a Mortgage Loan from the first day through the fifteenth
day of any calendar month other than June 2005, all amounts paid by the related
Mortgagor in respect of interest on such Principal Prepayment. All Prepayment
Interest Excess shall be retained by the Master Servicer as additional master
servicing compensation.

         PREPAYMENT INTEREST SHORTFALL: As to any Distribution Date, Mortgage
Loan and Principal Prepayment received on or after the sixteenth day of the
month preceding the month of such Distribution Date (or, in the case of the
first Distribution Date, on or after June 1, 2005) and on or before the last day
of the month preceding the month of such Distribution Date, the amount, if any,
by which one month's interest at the related Mortgage Rate, net of the Master
Servicing Fee Rate, on such Principal Prepayment exceeds the amount of interest
paid in connection with such Principal Prepayment.

         PREPAYMENT PERIOD: As to any Distribution Date and related Due Date,
the period from and including the 16th day of the month immediately prior to the
month of such Distribution Date (or, in the case of the first Distribution Date,
on June 1, 2005) to and including the 15th day of the month of such Distribution
Date.

         PRIMARY INSURANCE POLICY: Each policy of primary mortgage guaranty
insurance or any replacement policy therefor with respect to any Mortgage Loan.

         PRINCIPAL DISTRIBUTION AMOUNT: For any Distribution Date, the SUM OF
(i) the Basic Principal Distribution Amount for the Distribution Date and (ii)
the Extra Principal Distribution Amount for the Distribution Date.

         PRINCIPAL PREPAYMENT: Any payment of principal by a Mortgagor on a
Mortgage Loan (including the Purchase Price of any modified Mortgage Loan
purchased pursuant to Section 3.12(c)) that is received in advance of its
scheduled Due Date and is not accompanied by an amount representing scheduled
interest due on any date in any month after the month of prepayment. The Master
Servicer shall apply partial Principal Prepayments in accordance with the
related Mortgage Note.

         PRINCIPAL PREPAYMENT IN FULL: Any Principal Prepayment made by a
Mortgagor of the entire principal balance of a Mortgage Loan.

         PRINCIPAL REMITTANCE AMOUNT: For any Distribution Date and Loan Group,
the SUM OF the following amounts (without duplication) with respect to the
Mortgage Loans in such Loan Group:

         (i) the principal portion of previously undistributed Scheduled
Payments due after the Cut-off Date and by the Due Date occurring in the related
Remittance Period that were not the subject of a previous Advance and were
received by the Master Servicer before the related Determination Date or were
part of the Advance for the Determination Date,

         (ii) each Principal Prepayment received by the Master Servicer during
the related Prepayment Period,

         (iii) the Liquidation Proceeds on the Mortgage Loans allocable to
principal and Subsequent Recoveries actually collected by the Master Servicer
during the preceding calendar month,

         (iv) the principal portion of the purchase price with respect to each
Deleted Mortgage Loan, the repurchase obligation for which arose during the
preceding calendar month and that was repurchased before the related
Distribution Account Deposit Date,
         (v) the principal portion of any Substitution Adjustment Amounts in
connection with a substitution of a Mortgage Loan as of the Distribution Date
and

         (vi) the proceeds received with respect to the termination of the Trust
Fund (to the extent such proceeds relate to principal).

         PRIVATE CERTIFICATES: As specified in the Preliminary Statement.

         PROSPECTUS SUPPLEMENT: The Prospectus Supplement dated June 14, 2005
relating to the Offered Certificates.

         PUD: Planned Unit Development.

         PURCHASE PRICE: For any Mortgage Loan required to be purchased by the
Seller pursuant to Section 2.01, 2.02, 2.03 or 2.05 or purchased by the Master
Servicer pursuant to Section 3.12, the SUM OF

         (i) 100% of the unpaid principal balance of the Mortgage Loan on the
date of the purchase;

         (ii) accrued interest on the Mortgage Loan at the applicable Mortgage
Rate (or at the applicable Adjusted Mortgage Rate if (x) the purchaser is the
Master Servicer or (y) if the purchaser is the Seller and the Seller is the
Master Servicer) from the date through which interest was last paid by the
Mortgagor to the Due Date in the month in which the Purchase Price is to be
distributed to Certificateholders, net of any unreimbursed Advances made by the
Master Servicer on the Mortgage Loan; and

         (iii) any costs and damages incurred by the Trust Fund in connection
with any violation by the Mortgage Loan of any predatory or abusive lending law.

If the Mortgage Loan is a Mortgage Loan to be repurchased pursuant to Section
3.12, the interest component of the Purchase Price shall be computed (i) on the
basis of the applicable Adjusted Mortgage Rate before giving effect to the
related modification and (ii) from the date to which interest was last paid to
the date on which the Mortgage Loan is assigned to the Master Servicer pursuant
to Section 3.12(c).

         QUALIFIED INSURER: A mortgage guaranty insurance company duly qualified
as such under the laws of the state of its principal place of business and each
state having jurisdiction over the insurer in connection with the insurance
policy issued by the insurer, duly authorized and licensed in such states to
transact a mortgage guaranty insurance business in such states and to write the
insurance provided by the insurance policy issued by it, approved as a FNMA- or
FHLMC-approved mortgage insurer or having a claims paying ability rating of at
least "AA" or an equivalent rating by a nationally recognized statistical rating
organization. Any replacement insurer with respect to a Mortgage Loan must have
at least as high a claims paying ability rating as the insurer it replaces had
on the Closing Date.

         RATED FINAL MATURITY DATE: With respect to the Class A-II-1
Certificates and subject to the prepayment assumptions set forth in "Yield,
Prepayment and Maturity Considerations- Structuring Assumptions" in the
Prospectus Supplement, March 25, 2015.

         RATING AGENCY: Each of the Rating Agencies specified in the Preliminary
Statement. If any of them or a successor is no longer in existence, "RATING
AGENCY" shall be the nationally recognized statistical rating organization, or
other comparable Person, designated by the Depositor, notice of which
designation shall be given to the Trustee. References to a given rating or
rating category of a Rating Agency means the rating category without giving
effect to any modifiers.

         REALIZED LOSS: The excess of the Stated Principal Balance of a
defaulted Mortgage Loan over the net Liquidation Proceeds with respect thereto
that are allocated to the principal balance of such Mortgage Loan. To the extent
the Master Servicer receives Subsequent Recoveries with respect to any Mortgage
Loan, the amount of the Realized Loss with respect to that Mortgage Loan will be
reduced by such Subsequent Recoveries.

         RECORD DATE: For the Class A and Subordinated Certificates held in
book-entry form, the close of business on the Business Day before the related
Distribution Date. For any Definitive Certificate, the close of business on the
last Business Day of the month preceding the month of the related Distribution
Date.

         REFERENCE BANK: As defined in Section 4.07.

         REFINANCE LOAN: Any Mortgage Loan the proceeds of which are used to
refinance an existing Mortgage Loan.

         REGULAR CERTIFICATES: Any Class A, Class M, Class C or Class P
Certificate.

         RELIEF ACT:  The Servicemembers Civil Relief Act.

         RELIEF ACT INTEREST SHORTFALL: With respect to any Distribution Date
and any Mortgage Loan as to which there has been a reduction in the amount of
interest collectible thereon for the most recently ended calendar month as a
result of the application of the Relief Act or similar state laws, the amount,
if any, by which (i) interest collectible on such Mortgage Loan for the most
recently ended calendar month is less than (ii) interest accrued thereon for
such month pursuant to the Mortgage Note.

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

         REMIC I: The segregated pool of assets subject hereto, constituting the
primary trust created hereby and to be administered hereunder, with respect to
which a REMIC election is to be made, consisting of: (i) such Mortgage Loans and
Prepayment Charges as from time to time are subject to this Agreement, together
with the Mortgage Files relating thereto, and together with all collections
thereon and proceeds thereof, (ii) any REO Property, together with all
collections thereon and proceeds thereof, (iii) the Trustee's rights with
respect to the Mortgage Loans under all insurance policies, required to be
maintained pursuant to this Agreement and any proceeds thereof, (iv) the
Depositor's rights under this Agreement (including any security interest created
thereby) to the extent conveyed pursuant to Section 2.01 and (v) the Collection
Account, the Distribution Account and such assets that are deposited therein
from time to time and any investments thereof, together with any and all income,
proceeds and payments with respect thereto. Notwithstanding the foregoing,
however, REMIC I specifically excludes the Pre-Funding Accounts, any Subsequent
Mortgage Loan Interest, the Excess Reserve Fund Account, the Interest Coverage
Account, the Cap Contracts, all payments and other collections of principal and
interest due on the Mortgage Loans on or before the Cut-off Date and all
Prepayment Charges payable in connection with Principal Prepayments made before
the Cut-off Date.

         REMIC I REGULAR INTEREST: Any of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
regular interest in REMIC I. Each REMIC I Regular Interest shall accrue interest
at the related REMIC I Remittance Rate in effect from time to time, and shall be
entitled to distributions of principal, subject to the terms and conditions
hereof, in an aggregate amount equal to its initial Uncertificated Balance as
set forth in the Preliminary Statement hereto.

         REMIC I REGULAR INTEREST I-LT1: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest I-LT1 shall accrue
interest at the related REMIC I Remittance Rate in effect from time to time, and
shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC I REGULAR INTEREST I-LT1PF: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest I-LT1PF shall accrue
interest at the related REMIC I Remittance Rate in effect from time to time, and
shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC I REGULAR INTEREST I-LT2: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest I-LT2 shall accrue
interest at the related REMIC I Remittance Rate in effect from time to time, and
shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC I REGULAR INTEREST I-LT2PF: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest I-LT2PF shall accrue
interest at the related REMIC I Remittance Rate in effect from time to time, and
shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC I REGULAR INTEREST I-LTP: One of the separate non-certificated
beneficial ownership interests in REMIC I issued hereunder and designated as a
Regular Interest in REMIC I. REMIC I Regular Interest I-LTP shall be entitled to
distributions of principal, subject to the terms and conditions hereof, in an
aggregate amount equal to its initial Uncertificated Balance as set forth in the
Preliminary Statement hereto.

         REMIC I REMITTANCE RATE: With respect to REMIC I Regular Interest I-LT1
and (i) for the first and second Distribution Dates, the weighted average of the
Adjusted Net Mortgage Rates of the Initial Group I Mortgage Loans and (ii)
thereafter, the weighted average of the Adjusted Net Mortgage Rates of the Group
I Mortgage Loans. With respect to REMIC I Regular Interest I-LT2, and (i) for
the first and second Distribution Dates, the weighted average of the Adjusted
Net Mortgage Rates of the Initial Group II Mortgage Loans and (ii) thereafter,
the weighted average of the Adjusted Net Mortgage Rates of the Group II Mortgage
Loans. With respect to REMIC I Regular Interest I-LT1PF and (i) the first and
second Distribution Dates, 0.000% and (ii) thereafter, the weighted average of
the Adjusted Net Mortgage Rates of the Group I Mortgage Loans. With respect to
REMIC I Regular Interest I-LT2PF and (i) the first and second Distribution
Dates, 0.000% and (ii) thereafter, the weighted average of the Adjusted Net
Mortgage Rates of the Group II Mortgage Loans.

         REMIC II INTEREST LOSS ALLOCATION AMOUNT: With respect to any
Distribution Date, an amount (subject to adjustment based on the actual number
of days elapsed in the respective Interest Accrual Periods for the indicated
Regular Interests for such Distribution Date) equal to (a) the product of (i)
50% of the aggregate Stated Principal Balance of the Mortgage Loans and REO
Properties then outstanding and (ii) the REMIC II Remittance Rate for REMIC II
Regular Interest II-LTAA minus the Marker Rate, divided by (b) 12.

         REMIC II MARKER ALLOCATION PERCENTAGE: 50% of any amount payable or
loss attributable from the Mortgage Loans, which shall be allocated to REMIC II
Regular Interest II-LTAA, REMIC II Regular Interest II-LTAI1, REMIC II Regular
Interest II-LTAII1, REMIC II Regular Interest II-LTAII2, REMIC II Regular
Interest II-LTAII3, REMIC II Regular Interest II-LTM1, REMIC II Regular Interest
II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4,
REMIC II Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II
Regular Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II Regular
Interest II-LTM9, REMIC II Regular Interest II-LTM10, REMIC II Regular Interest
II-LTM11, REMIC II Regular Interest II-LTZZ and REMIC II Regular Interest
II-LTP.

         REMIC II OVERCOLLATERALIZATION TARGET AMOUNT: 0.50% of the
Overcollateralization Target Amount.

         REMIC II OVERCOLLATERALIZED AMOUNT: With respect to any date of
determination, (i) 0.50% of the aggregate Uncertificated Balance of the REMIC II
Regular Interests MINUS (ii) the aggregate Uncertificated Balance of REMIC II
Regular Interest II-LTAI1, REMIC II Regular Interest II-LTAII1, REMIC II Regular
Interest II-LTAII2, REMIC II Regular Interest II-LTAII3, REMIC II Regular
Interest II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II Regular Interest
II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II Regular Interest II-LTM5,
REMIC II Regular Interest II-LTM6, REMIC II Regular Interest II-LTM7, REMIC II
Regular Interest II-LTM8, REMIC II Regular Interest II-LTM9, REMIC II Regular
Interest II-LTM10, REMIC II Regular Interest II-LTM11 and REMIC II Regular
Interest II-LTP, in each case as of such date of determination.

         REMIC II PRINCIPAL LOSS ALLOCATION AMOUNT: With respect to any
Distribution Date, an amount equal to the product of (i) 50% of the aggregate
Stated Principal Balance of the Mortgage Loans and REO Properties then
outstanding and (ii) one (1) minus a fraction, the numerator of which is two (2)
times the aggregate Uncertificated Balance of REMIC II Regular Interest
II-LTAI1, REMIC II Regular Interest II-LTAII1, REMIC II Regular Interest
II-LTAII2, REMIC II Regular Interest II-LTAII3, REMIC II Regular Interest
II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II Regular Interest II-LTM3,
REMIC II Regular Interest II-LTM4, REMIC II Regular Interest II-LTM5, REMIC II
Regular Interest II-LTM6, REMIC II Regular Interest II-LTM7, REMIC II Regular
Interest II-LTM8, REMIC II Regular Interest II-LTM9, REMIC II Regular Interest
II-LTM10 and REMIC II Regular Interest II-LTM11 and the denominator of which is
the aggregate Uncertificated Balance of REMIC II Regular Interest II-LTAI1,
REMIC II Regular Interest II-LTAII1, REMIC II Regular Interest II-LTAII2, REMIC
II Regular Interest II-LTAII3, REMIC II Regular Interest II-LTM1, REMIC II
Regular Interest II-LTM2, REMIC II Regular Interest II-LTM3, REMIC II Regular
Interest II-LTM4, REMIC II Regular Interest II-LTM5, REMIC II Regular Interest
II-LTM6, REMIC II Regular Interest II-LTM7, REMIC II Regular Interest II-LTM8,
REMIC II Regular Interest II-LTM9, REMIC II Regular Interest II-LTM10, REMIC II
Regular Interest II-LTM11 and REMIC II Regular Interest II-LTZZ.

         REMIC II REGULAR INTEREST: Any of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
regular interest in REMIC II. Each REMIC II Regular Interest shall accrue
interest at the related REMIC II Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LT1GRP: One of the separate
non-certificated beneficial ownership interests in REMIC II issued hereunder and
designated as a Regular Interest in REMIC II. REMIC II Regular Interest
II-LT1GRP shall accrue interest at the related REMIC II Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LT1SUB: One of the separate
non-certificated beneficial ownership interests in REMIC II issued hereunder and
designated as a Regular Interest in REMIC II. REMIC II Regular Interest
II-LT1SUB shall accrue interest at the related REMIC II Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LT2GRP: One of the separate
non-certificated beneficial ownership interests in REMIC II issued hereunder and
designated as a Regular Interest in REMIC II. REMIC II Regular Interest
II-LT2GRP shall accrue interest at the related REMIC II Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LT2SUB: One of the separate
non-certificated beneficial ownership interests in REMIC II issued hereunder and
designated as a Regular Interest in REMIC II. REMIC II Regular Interest
II-LT2SUB shall accrue interest at the related REMIC II Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTAA: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest II-LTAA shall accrue
interest at the related REMIC II Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTAI1: One of the separate
non-certificated beneficial ownership interests in REMIC II issued hereunder and
designated as a Regular Interest in REMIC II. REMIC II Regular Interest II-LTAI1
shall accrue interest at the related REMIC II Remittance Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTAII1: One of the separate
non-certificated beneficial ownership interests in REMIC II issued hereunder and
designated as a Regular Interest in REMIC II. REMIC II Regular Interest
II-LTAII1 shall accrue interest at the related REMIC II Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTAII2: One of the separate
non-certificated beneficial ownership interests in REMIC II issued hereunder and
designated as a Regular Interest in REMIC II. REMIC II Regular Interest
II-LTAII2 shall accrue interest at the related REMIC II Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTAII3: One of the separate
non-certificated beneficial ownership interests in REMIC II issued hereunder and
designated as a Regular Interest in REMIC II. REMIC II Regular Interest
II-LTAII3 shall accrue interest at the related REMIC II Remittance Rate in
effect from time to time, and shall be entitled to distributions of principal,
subject to the terms and conditions hereof, in an aggregate amount equal to its
initial Uncertificated Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTM1: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest II-LTM1 shall accrue
interest at the related REMIC II Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTM2: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest II-LTM2 shall accrue
interest at the related REMIC II Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTM3: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest II-LTM3 shall accrue
interest at the related REMIC II Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTM4: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest II-LTM4 shall accrue
interest at the related REMIC II Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTM5: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest II-LTM5 shall accrue
interest at the related REMIC II Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTM6: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest II-LTM6 shall accrue
interest at the related REMIC II Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTM7: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest II-LTM7 shall accrue
interest at the related REMIC II Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTM8: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest II-LTM8 shall accrue
interest at the related REMIC II Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTM9: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest II-LTM9 shall accrue
interest at the related REMIC II Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTM10: One of the separate
non-certificated beneficial ownership interests in REMIC II issued hereunder and
designated as a Regular Interest in REMIC II. REMIC II Regular Interest II-LTM10
shall accrue interest at the related REMIC II Remittance Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTM11: One of the separate
non-certificated beneficial ownership interests in REMIC II issued hereunder and
designated as a Regular Interest in REMIC II. REMIC II Regular Interest II-LTM11
shall accrue interest at the related REMIC II Remittance Rate in effect from
time to time, and shall be entitled to distributions of principal, subject to
the terms and conditions hereof, in an aggregate amount equal to its initial
Uncertificated Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTP: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest II-LTP shall be entitled
to any Prepayment Charges collected by the Master Servicer and to a distribution
of principal, subject to the terms and conditions hereof, in an aggregate amount
equal to its initial Uncertificated Balance as set forth in the Preliminary
Statement hereto.

         REMIC II REGULAR INTEREST II-LTXX: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest II-LTXX shall accrue
interest at the related REMIC II Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC II REGULAR INTEREST II-LTZZ: One of the separate non-certificated
beneficial ownership interests in REMIC II issued hereunder and designated as a
Regular Interest in REMIC II. REMIC II Regular Interest II-LTZZ shall accrue
interest at the related REMIC II Remittance Rate in effect from time to time,
and shall be entitled to distributions of principal, subject to the terms and
conditions hereof, in an aggregate amount equal to its initial Uncertificated
Balance as set forth in the Preliminary Statement hereto.

         REMIC II REMITTANCE RATE: With respect to REMIC II Regular Interest
II-LTAA, REMIC II Regular Interest II-LTAI1, REMIC II Regular Interest
II-LTAII1, REMIC II Regular Interest II-LTAII2, REMIC II Regular Interest
II-LTAII3, REMIC II Regular Interest II-LTM1, REMIC II Regular Interest II-LTM2,
REMIC II Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II
Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II Regular
Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II Regular Interest
II-LTM9, REMIC II Regular Interest II-LTM10, REMIC II Regular Interest II-LTM11,
REMIC II Regular Interest II-LTZZ, REMIC II Regular Interest II-LT1SUB, REMIC II
Regular Interest II-LT2SUB and REMIC II Regular Interest II-LTXX, the weighted
average of the REMIC I Remittance Rate on the REMIC I Regular Interests,
weighted on the basis of the Uncertificated Balance of each such REMIC I Regular
Interest. With respect to REMIC II Regular Interest II-LT1GRP, the weighted
average of the REMIC I Remittance Rate on REMIC I Regular Interest I-LT1 and
REMIC I Regular Interest I-LT1PF, weighted on the basis of the Uncertificated
Balance of each such REMIC I Regular Interest. With respect REMIC II Regular
Interest II-LT2GRP, the weighted average of the REMIC I Remittance Rate on REMIC
I Regular Interest I-LT2 and REMIC I Regular Interest I-LT2PF, weighted on the
basis of the Uncertificated Balance of each such REMIC I Regular Interest.

         REMIC II SUB WAC ALLOCATION PERCENTAGE: 50% of any amount payable from
or loss attributable to the Mortgage Loans, which shall be allocated to REMIC II
Regular Interest II-LT1SUB, REMIC II Regular Interest II-LT1GRP, REMIC II
Regular Interest II-LT2SUB, REMIC II Regular Interest II-LT2GRP and REMIC II
Regular Interest II-LTXX.

         REMIC II SUBORDINATED BALANCE RATIO: The ratio between the
Uncertificated Balances of each REMIC II Regular Interest ending with the
designation "SUB", equal to the ratio between, with respect to each such REMIC
II Regular Interest, the excess of (x) the aggregate Stated Principal Balance of
the Mortgage Loans in the related Loan Group over (y) the current Certificate
Principal Balance of Class A Certificates in the related Loan Group.

         REMIC III: The segregated pool of assets consisting of all of the REMIC
II Regular Interests conveyed in trust to the Trustee, for the benefit of the
Holders of the Regular Certificates and the Class R Certificate (in respect of
the Class R-III Interest), pursuant to Article II hereunder, and all amounts
deposited therein, with respect to which a separate REMIC election is to be
made.

         REMIC III CERTIFICATE: Any Regular Certificate or Class R Certificate.

         REMIC PROVISIONS: Provisions of the federal income tax law relating to
REMICs, which appear at Sections 860A through 860G of Subchapter M of Chapter 1
of the Code, and related provisions, and regulations promulgated thereunder, as
the foregoing may be in effect from time to time as well as provisions of
applicable state laws.

         REMIC REGULAR INTEREST: Any REMIC I Regular Interest, REMIC II Regular
Interest or Regular Certificate, as applicable.

         REMIC REMITTANCE RATE: The REMIC I Remittance Rate or the REMIC II
Remittance Rate, as applicable.

         REMITTANCE PERIOD: For any Distribution Date, the period commencing on
the second day of the month preceding the month in which the Distribution Date
occurs and ending on the first day of the month in which the Distribution Date
occurs.

         REO PROPERTY: A Mortgaged Property acquired by the Trust Fund through
foreclosure or deed-in-lieu of foreclosure in connection with a defaulted
Mortgage Loan.

         REQUEST FOR RELEASE: The Request for Release submitted by the Master
Servicer to the Trustee, substantially in the form of Exhibits M and N, as
appropriate.

         REQUIRED INSURANCE POLICY: For any Mortgage Loan, any insurance policy
that is required to be maintained from time to time under this Agreement.

         RESIDUAL CERTIFICATES: As specified in the Preliminary Statement.

         RESPONSIBLE OFFICER: When used with respect to the Trustee, any Vice
President (however denominated), any Assistant Vice President, any Assistant
Secretary, any Assistant Treasurer, any Trust Officer or any other officer of
the Trustee customarily performing functions similar to those performed by any
of the above designated officers who at such time shall be officers to whom,
with respect to a particular matter, the matter is referred because of the
officer's knowledge of and familiarity with the particular subject and who has
direct responsibility for the administration of this Agreement.

         S&P: Standard & Poor's Ratings Services, a division of The McGraw-Hill
Companies, Inc. If S&P is designated as a Rating Agency in the Preliminary
Statement, for purposes of Section 10.05(b) the address for notices to S&P shall
be Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies,
Inc., 55 Water Street, New York, New York 10041, Attention: Mortgage
Surveillance Monitoring, or any other address that S&P furnishes to the
Depositor and the Master Servicer.

         SCHEDULED PAYMENT: The scheduled monthly payment on a Mortgage Loan
allocable to principal or interest on the Mortgage Loan that, unless otherwise
specified herein, shall give effect to any related Debt Service Reduction and
any Deficient Valuation that affects the amount of the monthly payment due on
the Mortgage Loan.

         SECURITIES ACT: The Securities Act of 1933, as amended.

         SELLER: IndyMac Bank, F.S.B., a federal savings bank, and its
successors and assigns, in its capacity as seller of the Mortgage Loans to the
Depositor.

         SENIOR ENHANCEMENT PERCENTAGE: For any Distribution Date, the Credit
Enhancement Percentage for the Class A Certificates.

         SERVICING ACCOUNT: The separate Eligible Account or Accounts created
and maintained pursuant to Section 3.06(b).

         SERVICING ADVANCES: All customary, reasonable, and necessary "out of
pocket" costs and expenses incurred in the performance by the Master Servicer of
its servicing obligations, including the cost of:

         (i)

                  (a) the preservation, restoration, and protection of a
Mortgaged Property,

                  (b) expenses reimbursable to the Master Servicer pursuant to
         Section 3.12 and any enforcement or judicial proceedings, including
         foreclosures,

                  (c) the maintenance and liquidation of any REO Property, and

                  (d) compliance with the obligations under Section 3.10; and

         (ii) reasonable compensation to the Master Servicer or its affiliates
for acting as broker in connection with the sale of foreclosed Mortgaged
Properties and for performing certain default management and other similar
services (including appraisal services) in connection with the servicing of
defaulted Mortgage Loans. For purposes of clause (ii), only costs and expenses
incurred in connection with the performance of activities generally considered
to be outside the scope of customary servicing or master servicing duties shall
be treated as Servicing Advances.

         SERVICING OFFICER: Any officer of the Master Servicer involved in, or
responsible for, the administration and servicing of the Mortgage Loans whose
name and facsimile signature appear on a list of servicing officers furnished to
the Trustee by the Master Servicer on the Closing Date pursuant to this
Agreement, as the list may from time to time be amended.

         SERVICING STANDARD: That degree of skill and care exercised by the
Master Servicer with respect to mortgage loans comparable to the Mortgage Loans
serviced by the Master Servicer for itself or others.

         STARTUP DAY: The Closing Date.

         STATED PRINCIPAL BALANCE: As to any Mortgage Loan and Due Date, the
unpaid principal balance of such Mortgage Loan as of such Due Date, as specified
in the amortization schedule for such Due Date (before any adjustment to such
amortization schedule by reason of any moratorium or similar waiver or grace
period) after giving effect to the sum of: (i) the payment of principal due on
such Due Date and irrespective of any delinquency in payment by the related
Mortgagor and (ii) any Liquidation Proceeds allocable to principal received in
the prior calendar month and any Principal Prepayments received through the last
day of the related Prepayment Period, in each case, with respect to such
Mortgage Loan.

         STEPDOWN DATE: The earlier to occur of (a) the first Distribution Date
on which the aggregate Class Certificate Balance of the Class A Certificates is
reduced to zero, and (b) the later to occur of (i) the Distribution Date in July
2008 and (ii) the first Distribution Date on which the Senior Enhancement
Percentage (calculated for this purpose only after taking into account
distributions of principal on the Mortgage Loans on the last day of the related
Remittance Period but before any application of Principal Distribution Amount to
the Certificates) is greater than or equal to 38.60%.

         SUBORDINATED CERTIFICATES: As specified in the Preliminary Statement.

         SUBORDINATED MAXIMUM CAP: For each Class of Subordinated Certificates
as of any Distribution Date, the WEIGHTED AVERAGE OF:

                  (i) the Group I Maximum Cap, weighted on the basis of the
         excess of the SUM OF the aggregate Stated Principal Balance of the
         Group I Mortgage Loans as of the opening of business on the first day
         of the related Remittance Period AND any amounts on deposit in the
         Group I Pre-Funding Account (weighted on the basis of the Stated
         Principal Balance of each such Mortgage Loan as of the Due Date
         occurring in the prior calendar month) OVER the aggregate Class
         Certificate Balance of the Group I Certificates immediately prior to
         that Distribution Date; AND

                  (ii) the Group II Maximum Cap, weighted on the basis of the
         excess of the SUM OF the aggregate Stated Principal Balance of the
         Group II Mortgage Loans as of the opening of business on the first day
         of the related Remittance Period AND any amounts on deposit in the
         Group II Pre-Funding Account (weighted on the basis of the Stated
         Principal Balance of each such Mortgage Loan as of the Due Date
         occurring in the prior calendar month) OVER the aggregate Class
         Certificate Balance of the Group II Certificates immediately prior to
         that Distribution Date.

         SUBORDINATED NET WAC CAP: For each Class of Subordinated Certificates
as of any Distribution Date, the WEIGHTED AVERAGE OF:

                  (i) the Group I Net WAC Cap, weighted on the basis of the
         excess of the SUM OF the aggregate Stated Principal Balance of the
         Group I Mortgage Loans as of the opening of business on the first day
         of the related Remittance Period and any amounts on deposit in the
         Group I Pre-Funding Account (weighted on the basis of the Stated
         Principal Balance of each such Mortgage Loan as of the Due Date
         occurring in the prior calendar month) OVER the aggregate Class
         Certificate Balance of the Group I Certificates immediately prior to
         that Distribution Date; AND

                  (ii) the Group II Net WAC Cap, weighted on the basis of the
         excess of the SUM OF the aggregate Stated Principal Balance of the
         Group II Mortgage Loans as of the opening of business on the first day
         of the related Remittance Period and any amounts on deposit in the
         Group II Pre-Funding Account (weighted on the basis of the Stated
         Principal Balance of each such Mortgage Loan as of the Due Date
         occurring in the prior calendar month) OVER the aggregate Class
         Certificate Balance of the Group II Certificates immediately prior to
         that Distribution Date.

For federal income tax purposes, the equivalent of the foregoing shall be
expressed as the weighted average of the REMIC II Remittance Rate on REMIC II
Regular Interest II-LT1SUB (subject to a cap and a floor equal to the REMIC II
Remittance Rate on REMIC II Regular Interest II-LT1GRP) and REMIC II Regular
Interest II-LT2SUB (subject to a cap and a floor equal to the REMIC II
Remittance Rate on REMIC II Regular Interest II-LT2GRP), weighted on the basis
of the Uncertificated Balance of each such REMIC II Regular Interest.

         SUBORDINATION REDUCTION AMOUNT: For any Distribution Date, the LESSER
OF (a) the Excess Overcollateralization Amount AND (b) the Total Monthly Excess
Spread.

         SUBSEQUENT CUT-OFF DATE: As to any Subsequent Mortgage Loans, the later
of (i) the first day of the month in which the related Subsequent Transfer Date
occurs or (ii) the date of origination of such Subsequent Mortgage Loan.

         SUBSEQUENT CUT-OFF DATE PRINCIPAL BALANCE: As to any Subsequent
Mortgage Loan, its Stated Principal Balance as of the close of business on the
applicable Subsequent Cut-off Date.

         SUBSEQUENT MORTGAGE LOAN: A Mortgage Loan sold by the Seller to the
Depositor and the Depositor to the Trust Fund pursuant to Section 2.07, such
Mortgage Loan being identified on the Mortgage Loan Schedule attached to a
Subsequent Transfer Instrument.

         SUBSEQUENT MORTGAGE LOAN INTEREST: Any amount constituting (i) a
monthly payment of interest received or advanced at the Net Mortgage Rate with
respect to a Subsequent Mortgage Loan in Loan Group I during the Due Periods
relating to the first and second Distribution Dates in excess of 0.000% per
annum and (ii) a monthly payment of interest received or advanced at the Net
Mortgage Rate with respect to a Subsequent Mortgage Loan in Loan Group II during
the Due Periods relating to the first and second Distribution Dates in excess of
0.000% per annum. The Subsequent Mortgage Loan Interest shall be distributable
to the Class C Certificates. The Subsequent Mortgage Loan Interest shall not be
an asset of any REMIC.

         SUBSEQUENT RECOVERIES: As to any Distribution Date, with respect to a
Liquidated Mortgage Loan that resulted in a Realized Loss in a prior calendar
month, unexpected amounts received by the Master Servicer (net of any related
expenses permitted to be reimbursed pursuant to Section 3.09) specifically
related to such Liquidated Mortgage Loan.

         SUBSEQUENT TRANSFER DATE: With respect to each Subsequent Transfer
Instrument, the date on or before the end of the Funding Period on which the
related Subsequent Mortgage Loans are sold to the Trust Fund.

         SUBSEQUENT TRANSFER INSTRUMENT: Each Subsequent Transfer Instrument,
dated as of a Subsequent Transfer Date, executed by the Trustee and the
Depositor substantially in the form attached hereto as Exhibit Q, by which
Subsequent Mortgage Loans are transferred to the Trust Fund.

         SUBSERVICER: As defined in Section 3.02(a).

         SUBSTITUTE MORTGAGE LOAN: A Mortgage Loan substituted by the Seller for
a Deleted Mortgage Loan that must, on the date of substitution, as confirmed in
a Request for Release, substantially in the form of Exhibit M:

         (i) have a Stated Principal Balance, after deduction of the principal
portion of the Scheduled Payment due in the month of substitution, not in excess
of, and not more than 10% less than, the Stated Principal Balance of the Deleted
Mortgage Loan;

         (ii) be accruing interest at a rate no lower than and not more than 1%
per annum higher than, that of the Deleted Mortgage Loan;

         (iii) have a Loan-to-Value Ratio no higher than that of the Deleted
Mortgage Loan;

         (iv) have a Maximum Mortgage Rate not more than 1% per annum higher
than and not lower than the Maximum Mortgage Rate of the Deleted Mortgage Loan;

         (v) have a Margin not more than 1% per annum higher than, and not lower
than that of the Deleted Mortgage Loan;

         (vi) have the same Index and same time period between reset periods as
that of the Deleted Mortgage Loan;

         (vii) have a remaining term to maturity no greater than (and not more
than one year less than that of) the Deleted Mortgage Loan;

         (viii) not be a cooperative loan;

         (ix) comply with each representation and warranty in Section 2.03; and

         (x) satisfy the criteria for inclusion in the applicable Loan Group.

         SUBSTITUTION ADJUSTMENT AMOUNT: As defined in Section 2.03.

         TELERATE PAGE 3750: The display page currently so designated by
Moneyline Telerate Information Services, Inc. (or on any page replacing that
page on that service for the purpose of displaying London inter-bank offered
rates of major banks).

         TOTAL MONTHLY EXCESS SPREAD: For any Distribution Date, the EXCESS OF
(i) Available Funds during the related Remittance Period OVER (ii) the SUM OF
the amounts paid to the Certificates on the Distribution Date pursuant to
Sections 4.02(I)(a) and (b).

         TRANSFER: Any direct or indirect transfer or sale of any Ownership
Interest in a Residual Certificate.

         TRIGGER EVENT: A Trigger Event exists if with respect to any
Distribution Date on or after the Stepdown Date, (A) the QUOTIENT OF (x) the
three month rolling average of the Stated Principal Balance of 60+ Day
Delinquent Loans as of the preceding calendar month OVER (y) the Stated
Principal Balance of the Mortgage Loans, as of the last day of the preceding
calendar month, EQUALS OR EXCEEDS 40.00% of the Senior Enhancement Percentage
for the Class A Certificates, or (B) a Cumulative Net Loss Trigger Event is in
effect.

         TRUST FUND: The corpus of the trust created under this Agreement
consisting of:

         (i) REMIC I;

         (ii) REMIC II;

         (iii) REMIC III;

         (iv) the Pre-Funding Accounts;

         (v) the Interest Coverage Acounts;

         (vi) the Cap Contracts; and

         (vii) the Excess Reserve Fund Account.

         TRUST REMIC: Any of REMIC I, REMIC II or REMIC III.

         TRUSTEE: Deutsche Bank National Trust Company and its successors and,
if a successor trustee is appointed under this Agreement, such successor.

         TRUSTEE FEE: As to each Mortgage Loan and any Distribution Date, one
month's interest at the related Trustee Fee Rate on the Stated Principal Balance
of the Mortgage Loan as of the Due Date occurring in the preceding calendar
month (or, whenever a payment of interest accompanies a Principal Prepayment in
Full made by the Mortgagor during the preceding calendar month, interest at the
Trustee Fee Rate on the Stated Principal Balance of the Mortgage Loan for the
period covered by the payment of interest) PLUS the aggregate amount on deposit
in the Pre-Funding Accounts as of the Due Date occurring in the preceding
calendar month (or, in the case of the initial Distribution Date, as of the
Closing Date).

         TRUSTEE FEE RATE: For each Mortgage Loan, the per annum rate agreed
upon in writing by the Closing Date by the Trustee and the Depositor.

         UNCERTIFICATED BALANCE: The amount of any REMIC Regular Interest
outstanding as of any date of determination. As of the Closing Date, the
Uncertificated Balance of each REMIC Regular Interest shall equal the amount set
forth in the Preliminary Statement hereto as its initial uncertificated balance.
On each Distribution Date, the Uncertificated Balance of each REMIC Regular
Interest shall be reduced by all distributions of principal made on such REMIC
Regular Interest on such Distribution Date pursuant to Section 4.08 and, if and
to the extent necessary and appropriate, shall be further reduced on such
Distribution Date by Realized Losses as provided in Section 4.08. The
Uncertificated Balance of REMIC II Regular Interest II-LTZZ shall be increased
by interest deferrals as provided in Section 4.08(a)(1). The Uncertificated
Balance of each REMIC Regular Interest shall never be less than zero. With
respect to the Class C Certificates as of any date of determination, an amount
equal to the excess, if any, of (A) the then aggregate Uncertificated Principal
Balance of the REMIC II Regular Interests over (B) the then aggregate
Certificate Principal Balance of the Class A Certificates, Subordinated
Certificates and Class P Certificates then outstanding.

         UNCERTIFICATED INTEREST: With respect to any REMIC Regular Interest for
any Distribution Date, one month's interest at the REMIC Remittance Rate
applicable to such REMIC Regular Interest for such Distribution Date, accrued on
the Uncertificated Balance thereof immediately prior to such Distribution Date.
Uncertificated Interest in respect of any REMIC Regular Interest shall accrue on
the basis of a 360-day year consisting of twelve 30-day months. Uncertificated
Interest with respect to each Distribution Date, as to any REMIC Regular
Interest, shall be reduced by an amount equal to the sum of (a) the aggregate
Prepayment Interest Shortfalls, if any, for such Distribution Date to the extent
not covered pursuant to Section 3.15 and (b) the aggregate amount of any Relief
Act Interest Shortfalls, if any, in each case in the manner and priority
described below.

         For purposes of calculating the amount of Uncertificated Interest for
the REMIC I Regular Interests for any Distribution Date, the aggregate amount of
any Prepayment Interest Shortfalls (to the extent not covered by the Master
Servicer pursuant to Section 3.15) and Relief Act Interest Shortfalls incurred
in respect of the Mortgage Loans for any Distribution Date shall be allocated
first, (a) with respect to the Group I Mortgage Loans, to REMIC I Regular
Interest I-LT1 and REMIC I Regular Interest I-LT1PF, in each case to the extent
of one month's interest at the then applicable respective REMIC I Remittance
Rate on the respective Uncertificated Balance of each such REMIC I Regular
Interest; provided, however, that with respect to the first and second
Distribution Dates, such amounts relating to the Initial Group I Mortgage Loans
shall be allocated to REMIC I Regular Interest I-LT1 and such amounts relating
to the Subsequent Group I Mortgage Loans shall be allocated to REMIC I Regular
Interest I-LT1PF, and (b) with respect to the Group II Mortgage Loans, to REMIC
I Regular Interest I-LT2 and REMIC I Regular Interest I-LT2PF, in each case to
the extent of one month's interest at the then applicable respective REMIC I
Remittance Rate on the respective Uncertificated Balance of each such REMIC I
Regular Interest; provided, however, that with respect to the first and second
Distribution Dates, such amounts relating to the Initial Group I Mortgage Loans
shall be allocated to REMIC I Regular Interest I-LT2 and such amounts relating
to the Subsequent Group II Mortgage Loans shall be allocated to REMIC I Regular
Interest I-LT2PF.

         For purposes of calculating the amount of Uncertificated Interest for
the REMIC II Regular Interests for any Distribution Date:

         The REMIC II Marker Allocation Percentage of the aggregate amount of
any Prepayment Interest Shortfalls (to the extent not covered by the Master
Servicer pursuant to Section 3.15) and the REMIC II Marker Allocation Percentage
of any Relief Act Interest Shortfalls incurred in respect of the Mortgage Loans
for any Distribution Date shall be allocated among REMIC II Regular Interest
II-LTAA, REMIC II Regular Interest II-LTAI1, REMIC II Regular Interest
II-LTAII1, REMIC II Regular Interest II-LTAII2, REMIC II Regular Interest
II-LTAII3, REMIC II Regular Interest II-LTM1, REMIC II Regular Interest II-LTM2,
REMIC II Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II
Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II Regular
Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II Regular Interest
II-LTM9, REMIC II Regular Interest II-LTM10, REMIC II Regular Interest II-LTM11
and REMIC II Regular Interest II-LTZZ, PRO RATA, based on, and to the extent of,
one month's interest at the then applicable respective REMIC II Remittance Rate
on the respective Uncertificated Balance of each such REMIC II Regular Interest;
and

         The REMIC II Sub WAC Allocation Percentage of the aggregate amount of
any Prepayment Interest Shortfalls (to the extent not covered by the Master
Servicer pursuant to Section 3.15) and the REMIC II Sub WAC Allocation
Percentage of any Relief Act Interest Shortfalls incurred in respect of the
Mortgage Loans for any Distribution Date shall be allocated to Uncertificated
Interest payable to REMIC II Regular Interest II-LT1SUB, REMIC II Regular
Interest II-LT1GRP, REMIC II Regular Interest II-LT2SUB, REMIC II Regular
Interest II-LT2GRP and REMIC II Regular Interest II-LTXX, PRO RATA, based on,
and to the extent of, one month's interest at the then applicable respective
REMIC II Remittance Rate on the respective Uncertificated Balance of each such
REMIC II Regular Interest.

         In addition, Uncertificated Interest with respect to each Distribution
Date, as to any REMIC Regular Interest, shall be reduced by Realized Losses, if
any, allocated to such REMIC Regular Interest as described above and pursuant to
Section 4.02.

         UNDERWRITER'S EXEMPTION: Prohibited Transaction Exemption 2002-41, 67
Fed.Reg. 54487 (2002) (or any successor thereto), or any substantially similar
administrative exemption granted by the U.S. Department of Labor.

         UNITED STATES PERSON OR U.S. PERSON:

         (i) A citizen or resident of the United States;

         (ii) a corporation (or entity treated as a corporation for tax
purposes) created or organized in the United States or under the laws of the
United States or of any state thereof, including, for this purpose, the District
of Columbia;

         (iii) a partnership (or entity treated as a partnership for tax
purposes) organized in the United States or under the laws of the United States
or of any state thereof, including, for this purpose, the District of Columbia
(unless provided otherwise by future Treasury regulations);

         (iv) an estate whose income is includible in gross income for United
States income tax purposes regardless of its source; or

         (v) a trust, if a court within the United States is able to exercise
primary supervision over the administration of the trust and one or more U.S.
Persons have authority to control all substantial decisions of the trust.
Notwithstanding the last clause of the preceding sentence, to the extent
provided in Treasury regulations, certain trusts in existence on August 20,
1996, and treated as U.S. Persons before that date, may elect to continue to be
U.S. Persons.

         UNPAID INTEREST AMOUNTS: As of any Distribution Date and any Class of
Certificates, the SUM OF

(a) the EXCESS OF

                  (i) the SUM OF the Accrued Certificate Interest Distribution
         Amount for the Distribution Date and any portion of the Accrued
         Certificate Interest Distribution Amount from prior Distribution Dates
         remaining unpaid OVER

                  (ii) the amount in respect of interest on the Class of
         Certificates actually distributed on such Distribution Date; and

(b) interest on that excess for the related Interest Accrual Period at the
applicable Pass-Through Rate (to the extent permitted by applicable law).

         UNPAID REALIZED LOSS AMOUNT: For any Class of Subordinated Certificates
and any Distribution Date, is the EXCESS OF (i) Applied Realized Loss Amounts
for the Class OVER (ii) the SUM OF all distributions in reduction of Applied
Realized Loss Amounts for the Class on all previous Distribution Dates and any
reductions applied thereto due to the receipt of Subsequent Recoveries. Any
amounts distributed to a Class of Subordinated Certificates with respect to any
Unpaid Realized Loss Amount will not be applied to reduce the Class Certificate
Balance of the Class.

         VOTING RIGHTS: The portion of the voting rights of all of the
Certificates that is allocated to any Certificate. As of any date of
determination, (a) 1% of all Voting Rights shall be allocated to any Class C
Certificates and (b) the remaining Voting Rights shall be allocated among
Holders of the remaining Classes of Certificates in proportion to the
Certificate Balances of their respective Certificates on the date (the Voting
Rights to be allocated among the holders of Certificates of each Class in
accordance with their respective Percentage Interests).

Section 1.02      RULES OF CONSTRUCTION.

         Except as otherwise expressly provided in this Agreement or unless the
context clearly requires otherwise:

         (a) References to designated articles, sections, subsections, exhibits,
and other subdivisions of this Agreement, such as "Section 6.12 (a)," refer to
the designated article, section, subsection, exhibit, or other subdivision of
this Agreement as a whole and to all subdivisions of the designated article,
section, subsection, exhibit, or other subdivision. The words "herein,"
"hereof," "hereto," "hereunder," and other words of similar import refer to this
Agreement as a whole and not to any particular article, section, exhibit, or
other subdivision of this Agreement.

         (b) Any term that relates to a document or a statute, rule, or
regulation includes any amendments, modifications, supplements, or any other
changes that may have occurred since the document, statute, rule, or regulation
came into being, including changes that occur after the date of this Agreement.

         (c) Any party may execute any of the requirements under this Agreement
either directly or through others, and the right to cause something to be done
rather than doing it directly shall be implicit in every requirement under this
Agreement. Unless a provision is restricted as to time or limited as to
frequency, all provisions under this Agreement are implicitly available and
things may happen from time to time.

         (d) The term "including" and all its variations mean "including but not
limited to." Except when used in conjunction with the word "either," the word
"or" is always used inclusively (for example, the phrase "A or B" means "A or B
or both," not "either A or B but not both").

         (e) A reference to "a [thing]" or "any [of a thing]" does not imply the
existence or occurrence of the thing referred to even though not followed by "if
any," and "any [of a thing]" is any of it. A reference to the plural of anything
as to which there could be either one or more than one does not imply the
existence of more than one (for instance, the phrase "the obligors on a note"
means "the obligor or obligors on a note"). "Until [something occurs]" does not
imply that it must occur, and will not be modified by the word "unless." The
word "due" and the word "payable" are each used in the sense that the stated
time for payment has passed. The word "accrued" is used in its accounting sense,
i.e., an amount paid is no longer accrued. In the calculation of amounts of
things, differences and sums may generally result in negative numbers, but when
the calculation of the excess of one thing over another results in zero or a
negative number, the calculation is disregarded and an "excess" does not exist.
Portions of things may be expressed as fractions or percentages interchangeably.

         (f) All accounting terms used in an accounting context and not
otherwise defined, and accounting terms partly defined in this Agreement, to the
extent not completely defined, shall be construed in accordance with generally
accepted accounting principles. To the extent that the definitions of accounting
terms in this Agreement are inconsistent with their meanings under generally
accepted accounting principles, the definitions contained in this Agreement
shall control. Capitalized terms used in this Agreement without definition that
are defined in the Uniform Commercial Code are used in this Agreement as defined
in the Uniform Commercial Code.

         (g) In the computation of a period of time from a specified date to a
later specified date or an open-ended period, the words "from" and "beginning"
mean "from and including," the word "after" means "from but excluding," the
words "to" and "until" mean "to but excluding," and the word "through" means "to
and including." Likewise, in setting deadlines or other periods, "by" means "on
or before." The words "preceding," "following," and words of similar import,
mean immediately preceding or following. References to a month or a year refer
to calendar months and calendar years.

         (h) Any reference to the enforceability of any agreement against a
party means that it is enforceable, subject as to enforcement against the party,
to applicable bankruptcy, insolvency, reorganization, and other similar laws of
general applicability relating to or affecting creditors' rights and to general
equity principles.

<PAGE>

                                   ARTICLE II

          CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES

         Section 2.01 CONVEYANCE OF MORTGAGE LOANS.

         (a) The Seller, concurrently with the execution and delivery of this
Agreement, hereby transfers to the Depositor, without recourse, all the interest
of the Seller in each Mortgage Loan, including all interest and principal due to
the Seller on each Mortgage Loan after the applicable Cut-off Date and all
interest and principal payments on each Mortgage Loan received by the applicable
Cut-off Date for installments of interest and principal due after the applicable
Cut-off Date but not including payments of principal and interest due on each
Mortgage Loan by the applicable Cut-off Date. By the Closing Date, the Seller
shall deliver to the Depositor or, at the Depositor's direction, to the Trustee
or other designee of the Depositor, the Mortgage File for each Mortgage Loan
listed in the Mortgage Loan Schedule (except that, in the case of Mortgage Loans
that are Delayed Delivery Mortgage Loans, such delivery may take place within
five (5) Business Days of the Closing Date) as of the Closing Date. The delivery
of the Mortgage Files shall be made against payment by the Depositor of the
purchase price, previously agreed to by the Seller and Depositor, for the
Mortgage Loans. Also on the Closing Date, the Depositor shall deposit $100 into
the Certificate Account for the benefit of the Class P Certificates.

         (b) The Depositor, concurrently with the execution and delivery of this
Agreement, hereby transfers to the Trustee for the benefit of the
Certificateholders, without recourse, all the interest of the Depositor in the
Trust Fund, together with the Depositor's right to require the Seller to cure
any breach of a representation or warranty made in this Agreement by the Seller
or to repurchase or substitute for any affected Mortgage Loan in accordance with
this Agreement. The Depositor hereby directs the Trustee to execute the Cap
Contracts.

         (c) In connection with the transfer and assignment of each Mortgage
Loan, the Depositor has delivered (or, in the case of the Delayed Delivery
Mortgage Loans, will deliver within the time periods specified in the definition
of Delayed Delivery Mortgage Loans) to the Trustee for the benefit of the
Certificateholders the following documents or instruments with respect to each
Mortgage Loan so assigned:

                  (i) The original Mortgage Note, endorsed by manual or
         facsimile signature in blank in the following form: "Pay to the order
         of _______________ ______________without recourse," with all
         intervening endorsements showing a complete chain of endorsement from
         the originator to the Person endorsing the Mortgage Note (each
         endorsement being sufficient to transfer all interest of the party so
         endorsing, as noteholder or assignee thereof, in that Mortgage Note) or
         a lost note affidavit for any Lost Mortgage Note from the Seller
         stating that the original Mortgage Note was lost or destroyed, together
         with a copy of the Mortgage Note.

                  (ii) Except as provided below, for each Mortgage Loan that is
         not a MERS Mortgage Loan, the original recorded Mortgage or a copy of
         such Mortgage certified by the Seller as being a true and complete copy
         of the Mortgage (or, in the case of a Mortgage for which the related
         Mortgaged Property is located in the Commonwealth of Puerto Rico, a
         true copy of the Mortgage certified as such by an applicable notary)
         and in the case of each MERS Mortgage Loan, the original Mortgage,
         noting the presence of the MIN of the Mortgage Loans and either
         language indicating that the Mortgage Loan is a MOM Loan if the
         Mortgage Loan is a MOM Loan or if the Mortgage Loan was not a MOM Loan
         at origination, the original Mortgage and the assignment thereof to
         MERS, with evidence of recording indicated thereon, or a copy of the
         Mortgage certified by the public recording office in which such
         Mortgage has been recorded.

                  (iii) In the case of each Mortgage Loan that is not a MERS
         Mortgage Loan, a duly executed assignment of the Mortgage (which may be
         included in a blanket assignment or assignments), together with, except
         as provided below, all interim recorded assignments of such mortgage
         (each such assignment, when duly and validly completed, to be in
         recordable form and sufficient to effect the assignment of and transfer
         to the assignee thereof, under the Mortgage to which the assignment
         relates); provided, that if the related Mortgage has not been returned
         from the applicable public recording office, such assignment of the
         Mortgage may exclude the information to be provided by the recording
         office; provided, further, that such assignment of Mortgage need not be
         delivered in the case of a Mortgage for which the related Mortgaged
         Property is located in the Commonwealth of Puerto Rico.

                  (iv) The original or copies of each assumption, modification,
         written assurance, or substitution agreement.

                  (v) Except as provided below, the original or duplicate
         original lender's title policy and all its riders.

         In addition, in connection with the assignment of any MERS Mortgage
Loan, the Seller agrees that it will cause, at the Seller's expense, the MERS(R)
System to indicate that the Mortgage Loans sold by the Seller to the Depositor
have been assigned by the Seller to the Trustee in accordance with this
Agreement for the benefit of the Certificateholders by including (or deleting,
in the case of Mortgage Loans which are repurchased in accordance with this
Agreement) in such computer files the information required by the MERS(R) System
to identify the series of the Certificates issued in connection with such
Mortgage Loans. The Seller further agrees that it will not, and will not permit
the Master Servicer to, and the Master Servicer agrees that it will not, alter
the information referenced in this paragraph with respect to any Mortgage Loan
sold by the Seller to the Depositor during the term of this Agreement unless and
until such Mortgage Loan is repurchased in accordance with the terms of this
Agreement.

         In the event that in connection with any Mortgage Loan that is not a
MERS Mortgage Loan the Depositor cannot deliver (a) the original recorded
Mortgage, (b) all interim recorded assignments or (c) the lender's title policy
(together with all riders thereto) satisfying the requirements of clause (ii),
(iii) or (v) above, respectively, concurrently with the execution and delivery
hereof because such document or documents have not been returned from the
applicable public recording office in the case of clause (ii) or (iii) above, or
because the title policy has not been delivered to either the Master Servicer or
the Depositor by the applicable title insurer in the case of clause (v) above,
the Depositor shall promptly deliver to the Trustee, in the case of clause (ii)
or (iii) above, such original Mortgage or such interim assignment, as the case
may be, with evidence of recording indicated thereon upon receipt thereof from
the public recording office, or a copy thereof, certified, if appropriate, by
the relevant recording office, but in no event shall any such delivery of the
original Mortgage and each such interim assignment or a copy thereof, certified,
if appropriate, by the relevant recording office, be made later than one year
following the Closing Date, or, in the case of clause (v) above, no later than
120 days following the Closing Date; provided, however, that in the event the
Depositor is unable to deliver by such date each Mortgage and each such interim
assignment by reason of the fact that any such documents have not been returned
by the appropriate recording office, or, in the case of each such interim
assignment, because the related Mortgage has not been returned by the
appropriate recording office, the Depositor shall deliver such documents to the
Trustee as promptly as possible upon receipt thereof and, in any event, within
720 days following the Closing Date.

         The Depositor shall forward to the Trustee (a) from time to time
additional original documents evidencing an assumption or modification of a
Mortgage Loan and (b) any other documents required to be delivered by the
Depositor or the Master Servicer to the Trustee. If the original Mortgage is not
delivered and in connection with the payment in full of the related Mortgage
Loan the public recording office requires the presentation of a "lost
instruments affidavit and indemnity" or any equivalent document, because only a
copy of the Mortgage can be delivered with the instrument of satisfaction or
reconveyance, the Master Servicer shall execute and deliver the required
document to the public recording office. If a public recording office retains
the original recorded Mortgage or if a Mortgage is lost after recordation in a
public recording office, the Seller shall deliver to the Trustee a copy of the
Mortgage certified by the public recording office to be a true and complete copy
of the original recorded Mortgage.

         As promptly as practicable after any transfer of a Mortgage Loan under
this Agreement, and in any event within thirty days after the transfer, the
Trustee shall (i) affix the Trustee's name to each assignment of Mortgage, as
its assignee, and (ii) cause to be delivered for recording in the appropriate
public office for real property records the assignments of the Mortgages to the
Trustee, except that, if the Trustee has not received the information required
to deliver any assignment of a Mortgage for recording, the Trustee shall deliver
it as soon as practicable after receipt of the needed information and in any
event within thirty days.

         Notwithstanding the foregoing, however, for administrative convenience
and facilitation of servicing and to reduce closing costs, the assignments of
Mortgage shall not be required to be submitted for recording (except with
respect to any Mortgage Loan located in Maryland) unless such failure to record
would result in a withdrawal or a downgrading by any Rating Agency of the rating
on any Class of Certificates; provided, however, that each assignment of
Mortgage shall be submitted for recording by the Seller (at the direction of the
Master Servicer) in the manner described above, at no expense to the Trust Fund
or the Trustee, upon the earliest to occur of: (i) reasonable direction by the
Holders of Certificates entitled to at least 25% of the Voting Rights or by the
NIM Insurer, if any, (ii) [RESERVED], (iii) the occurrence of a bankruptcy,
insolvency or foreclosure relating to the Seller, (iv) the occurrence of a
servicing transfer as described in Section 7.02 hereof and (v) if the Seller is
not the Master Servicer and with respect to any one assignment or Mortgage, the
occurrence of a bankruptcy, insolvency or foreclosure relating to the Mortgagor
under the related Mortgage. Notwithstanding the foregoing, if the Master
Servicer is unable to pay the cost of recording the assignments of Mortgage,
such expense shall be paid by the Trustee and shall be reimbursable out of the
Distribution Account.

         If any Mortgage Loans have been prepaid in full as of the Closing Date,
the Depositor, in lieu of delivering the above documents to the Trustee, will
deposit in the Certificate Account the portion of the prepayment that is
required to be deposited in the Certificate Account pursuant to Section 3.06.

         Notwithstanding anything to the contrary in this Agreement, within five
(5) Business Days after the Closing Date, the Seller shall either

         (i) deliver to the Trustee the Mortgage File as required pursuant to
this Section 2.01 for each Delayed Delivery Mortgage Loan or

         (ii) (A) repurchase the Delayed Delivery Mortgage Loan or (B)
substitute the Delayed Delivery Mortgage Loan for a Substitute Mortgage Loan,
which repurchase or substitution shall be accomplished in the manner and subject
to the conditions in Section 2.03.

         By the fifth Business Day after the Closing Date, the Trustee shall, in
accordance with Section 2.02, send a Delayed Delivery Certification
substantially in the form of Exhibit G-2 (with any applicable exceptions noted
thereon) for all Delayed Delivery Mortgage Loans delivered within the specified
numbers of days after the pertinent date. The Trustee will promptly send a copy
of such Delayed Delivery Certification to each Rating Agency. If the Seller
fails to deliver a Mortgage File for any Delayed Delivery Mortgage Loan within
the period specified herein, the Seller shall use its best reasonable efforts to
effect a substitution, rather than a repurchase of, any Deleted Mortgage Loan.
The cure period provided for in Section 2.02 or in Section 2.03 shall not apply
to the initial delivery of the Mortgage File for such Delayed Delivery Mortgage
Loan, but rather the Seller shall have five (5) Business Days to cure such
failure to deliver. At the end of such period, the Trustee shall send a Delayed
Delivery Certification for the Delayed Delivery Mortgage Loans delivered during
such period in accordance with the provisions of Section 2.02.

         The Seller agrees to treat the transfer of the Mortgage Loans to the
Depositor as a sale for all tax, accounting, and regulatory purposes.

         It is agreed and understood by the parties hereto that it is not
intended that any Mortgage Loan be included in the Trust Fund that is a
"High-Cost Home Loan" (or any other similarly designated loan) as defined in the
New Jersey Home Ownership Act effective November 27, 2003, The Home Loan
Protection Act of New Mexico effective January 1, 2004, The Massachusetts
Predatory Home Loan Practices Act effective November 7, 2004 or The Indiana Home
Loan Practices Act effective January 1, 2005.

         Section 2.02 ACCEPTANCE BY THE TRUSTEE OF THE MORTGAGE LOANS.

         The Trustee acknowledges receipt of the documents identified in the
Initial Certification in the form of Exhibit G-1 and declares that it holds and
will hold such documents and the other documents delivered to it constituting
the Mortgage Files for the Mortgage Loans, and that it holds or will hold such
other assets as are included in the Trust Fund, in trust for the exclusive use
and benefit of all present and future Certificateholders. The Trustee
acknowledges that it will maintain possession of the related Mortgage Notes in
the State of California, unless otherwise permitted by the Rating Agencies.

         The Trustee agrees to execute and deliver on the Closing Date to the
Depositor, the Master Servicer and the Seller an Initial Certification in the
form of Exhibit G-1. Based on its review and examination, and only as to the
documents identified in the Initial Certification, the Trustee acknowledges that
the documents appear regular on their face and relate to the Mortgage Loans. The
Trustee shall be under no duty to inspect, review, or examine said documents,
instruments, certificates, or other papers to determine that the same are
genuine, enforceable, or appropriate for the represented purpose or that they
have actually been recorded in the real estate records or that they are other
than what they purport to be on their face.

         By the thirtieth day after the Closing Date (or if that day is not a
Business Day, the succeeding Business Day), the Trustee shall deliver to the
Depositor, the Master Servicer and the Seller a Delayed Delivery Certification
with respect to the Mortgage Loans, substantially in the form of Exhibit G-2,
with any applicable exceptions noted thereon.

         Not later than ninety (90) days after the Closing Date, the Trustee
shall deliver to the Depositor, the Master Servicer and the Seller a Final
Certification in the form of Exhibit H, with any applicable exceptions noted
thereon.

         If, in the course of its review, the Trustee finds any document
constituting a part of a Mortgage File that does not meet the requirements of
Section 2.01, the Trustee shall list such as an exception in the Final
Certification. The Trustee shall not make any determination as to whether (i)
any endorsement is sufficient to transfer all interest of the party so
endorsing, as noteholder or assignee thereof, in that Mortgage Note or (ii) any
assignment is in recordable form or is sufficient to effect the assignment of
and transfer to the assignee thereof under the mortgage to which the assignment
relates. The Seller shall promptly correct any such defect within ninety (90)
days from the date it was so notified of the defect and, with respect to any
Mortgage Loan for which such defect is materially adverse to the
Certificateholders, if the Seller does not correct such defect within that
period, the Seller shall either (a) substitute for the related Mortgage Loan a
Substitute Mortgage Loan, which substitution shall be accomplished pursuant to
Section 2.03, or (b) purchase the Mortgage Loan at its Purchase Price from the
Trustee within ninety (90) days from the date the Seller was notified of the
defect in writing.

         If a substitution or purchase of a Mortgage Loan pursuant to this
provision is required because of a delay in delivery of any documents by the
appropriate recording office, or there is a dispute between either the Master
Servicer or the Seller and the Trustee over the location or status of the
recorded document, then the substitution or purchase shall occur within 720 days
from the Closing Date. In no other case may a substitution or purchase occur
more than 540 days from the Closing Date.

         The Trustee shall deliver written notice to each Rating Agency within
270 days from the Closing Date indicating each Mortgage Loan (a) that has not
been returned by the appropriate recording office or (b) as to which there is a
dispute as to location or status of the Mortgage Loan. The notice shall be
delivered every ninety (90) days thereafter until the related Mortgage Loan is
returned to the Trustee. Any substitution pursuant to (a) above or purchase
pursuant to (b) above shall not be effected before the delivery to the Trustee
of the Opinion of Counsel required by Section 2.05, and any substitution
pursuant to (a) above shall not be effected before the additional delivery to
the Trustee of a Request for Release substantially in the form of Exhibit N. No
substitution is permitted to be made in any calendar month after the
Determination Date for the month.

         The Purchase Price for any Mortgage Loan shall be deposited by the
Seller in the Certificate Account by the Distribution Account Deposit Date for
the Distribution Date in the month following the month of repurchase and, upon
receipt of the deposit and certification with respect thereto in the form of
Exhibit N, the Trustee shall release the related Mortgage File to the Seller and
shall execute and deliver at the Seller's request any instruments of transfer or
assignment prepared by the Seller, in each case without recourse, necessary to
vest in the Seller, or a designee, the Trustee's interest in any Mortgage Loan
released pursuant hereto.

         If pursuant to the foregoing provisions the Seller repurchases a
Mortgage Loan that is a MERS Mortgage Loan, the Master Servicer shall either (i)
cause MERS to execute and deliver an assignment of the Mortgage in recordable
form to transfer the Mortgage from MERS to the Seller and shall cause such
Mortgage to be removed from registration on the MERS(R) System in accordance
with MERS' rules and regulations or (ii) cause MERS to designate on the MERS(R)
System the Seller as the beneficial holder of such Mortgage Loan.

         The Trustee shall retain possession and custody of each Mortgage File
in accordance with and subject to the terms and conditions herein. The Master
Servicer shall promptly deliver to the Trustee, upon the execution or receipt
thereof, the originals of such other documents or instruments constituting the
Mortgage File as come into the possession of the Master Servicer from time to
time.

         The obligation of the Seller to substitute for or to purchase any
Mortgage Loan that does not meet the requirements of Section 2.01 shall
constitute the sole remedy respecting the defect available to the Trustee, the
Depositor, and any Certificateholder against the Seller.

         Section 2.03 REPRESENTATIONS, WARRANTIES, AND COVENANTS OF THE
                      SELLER AND THE MASTER SERVICER.

         (a) IndyMac, in its capacities as Seller and Master Servicer, hereby
makes the representations and warranties in Schedule II, and by this reference
incorporated herein, to the Depositor and the Trustee, as of the Closing Date.
The Master Servicer will fully furnish, in accordance with the Fair Credit
Reporting Act and its implementing regulations, accurate and complete
information (i.e., favorable and unfavorable) on its credit files for the
related Mortgagor for each Mortgage Loan to Equifax, Experian and Trans Union
Credit Information Company on a monthly basis.

         (b) The Seller, in its capacity as Seller, hereby makes the
representations and warranties in Schedule III, and by this reference
incorporated herein, to the Depositor and the Trustee, as of the Closing Date,
or if so specified therein, as of the applicable Cut-off Date.

         (c) Upon discovery by any of the parties hereto of a breach of a
representation or warranty made pursuant to Section 2.03(b) that materially and
adversely affects the interests of the Certificateholders in any Mortgage Loan,
the party discovering such breach shall give prompt notice thereof to the other
parties and the NIM Insurer. A breach of the representation or warranty made
pursuant to clauses (29), (30), (34), (35), (36), (37), (38) and (39) of
Schedule III or a breach of the covenant of the Master Servicer made pursuant to
clause (a) above will be deemed to materially and adversely affect the interests
of the Certificateholders in the related Mortgage Loan. The Seller hereby
covenants that within ninety (90) days of the earlier of its discovery or its
receipt of written notice from any party of a breach of any representation or
warranty made pursuant to Section 2.03(b) that materially and adversely affects
the interests of the Certificateholders in any Mortgage Loan, it shall cure such
breach in all material respects, and if such breach is not so cured, shall: (i)
if the 90 day period expires before the second anniversary of the Closing Date,
remove the Mortgage Loan (a "DELETED MORTGAGE LOAN") from the Trust Fund and
substitute in its place a Substitute Mortgage Loan, in accordance with this
Section 2.03; or (ii) repurchase the affected Mortgage Loan or Mortgage Loans
from the Trustee at the Purchase Price in the manner stated below. Any
substitution pursuant to (i) above shall not be effected before the delivery to
the Trustee of the Opinion of Counsel required by Section 2.05 and a Request for
Release substantially in the form of Exhibit N, and the Mortgage File for any
Substitute Mortgage Loan. The Seller shall promptly reimburse the Master
Servicer and the Trustee for any expenses reasonably incurred by the Master
Servicer or the Trustee in respect of enforcing the remedies for the breach.

         With respect to any Substitute Mortgage Loan or Loans, the Seller shall
deliver to the Trustee for the benefit of the Certificateholders the Mortgage
Note, the Mortgage, the related assignment of the Mortgage, and any other
documents and agreements required by Section 2.01, with the Mortgage Note
endorsed and the Mortgage assigned as required by Section 2.01. No substitution
is permitted to be made in any calendar month after the Determination Date for
the month. Scheduled Payments due with respect to Substitute Mortgage Loans in
the Remittance Period of substitution shall not be part of the Trust Fund and
will be retained by the Seller on the next Distribution Date. For the Remittance
Period of substitution, distributions to Certificateholders will include the
monthly payment due on any Deleted Mortgage Loan for the Remittance Period and
thereafter the Seller shall be entitled to retain all amounts received with
respect to the Deleted Mortgage Loan.

         The Master Servicer shall amend the Mortgage Loan Schedule for the
benefit of the Certificateholders to reflect the removal of the Deleted Mortgage
Loan and the substitution of the Substitute Mortgage Loans and the Master
Servicer shall deliver the amended Mortgage Loan Schedule to the Trustee. Upon
the substitution, the Substitute Mortgage Loans shall be subject to this
Agreement in all respects, and the Seller shall be deemed to have made with
respect to the Substitute Mortgage Loans, as of the date of substitution, the
representations and warranties made pursuant to Section 2.03(b) with respect to
the Mortgage Loan. Upon any substitution and the deposit to the Certificate
Account of the amount required to be deposited therein in connection with the
substitution as described in the following paragraph, the Trustee shall release
the Mortgage File held for the benefit of the Certificateholders relating to the
Deleted Mortgage Loan to the Seller and shall execute and deliver at the
Seller's direction such instruments of transfer or assignment prepared by the
Seller, in each case without recourse, as shall be necessary to vest title in
the Seller, or its designee, the Trustee's interest in any Deleted Mortgage Loan
substituted for pursuant to this Section 2.03.

         For any month in which the Seller substitutes one or more Substitute
Mortgage Loans for one or more Deleted Mortgage Loans, the Master Servicer will
determine the amount by which the aggregate principal balance of all such
Substitute Mortgage Loans as of the date of substitution is less than the
aggregate Stated Principal Balance of all the Deleted Mortgage Loans (after
application of the scheduled principal portion of the monthly payments due in
the Remittance Period of substitution and any adjustments due to any costs or
damages incurred by the Trust Fund in connection with any violation of the
Mortgage Loan of any predatory or abusive lending law). The amount of the
shortage (the "SUBSTITUTION ADJUSTMENT AMOUNT") PLUS, if the Seller is not the
Master Servicer, the aggregate of any unreimbursed Advances and Servicing
Advances with respect to the Deleted Mortgage Loans, shall be deposited into the
Certificate Account by the Seller by the Distribution Account Deposit Date for
the Distribution Date in the month succeeding the calendar month during which
the related Mortgage Loan became required to be purchased or replaced hereunder.

         If the Seller repurchases a Mortgage Loan, the Purchase Price therefor
shall be deposited in the Certificate Account pursuant to Section 3.06 by the
Distribution Account Deposit Date for the Distribution Date in the month
following the month during which the Seller became obligated hereunder to
repurchase or replace the Mortgage Loan and upon such deposit of the Purchase
Price, the delivery of the Opinion of Counsel required by Section 2.05 and
receipt of a Request for Release in the form of Exhibit N, the Trustee shall
release the related Mortgage File held for the benefit of the Certificateholders
to such Person, and the Trustee shall execute and deliver at such Person's
direction such instruments of transfer or assignment prepared by such Person, in
each case without recourse, as shall be necessary to transfer title from the
Trustee. The obligation under this Agreement of any Person to cure, repurchase,
or replace any Mortgage Loan as to which a breach has occurred and is continuing
shall constitute the sole remedy against the Person respecting the breach
available to Certificateholders, the Depositor, or the Trustee on their behalf.

         The representations and warranties made pursuant to this Section 2.03
shall survive delivery of the respective Mortgage Files to the Trustee for the
benefit of the Certificateholders.

         Section 2.04  REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR AS TO
                       THE MORTGAGE LOANS.

         The Depositor hereby represents and warrants to the Trustee with
respect to each Mortgage Loan as of the date hereof or such other date set forth
herein that as of the Closing Date, and following the transfer of the Mortgage
Loans to it by the Seller, the Depositor had good title to the Mortgage Loans
and the Mortgage Notes were subject to no offsets, defenses, or counterclaims.

         The Depositor hereby transfers to the Trustee all of its rights with
respect to the Mortgage Loans, including the representations and warranties of
the Seller made pursuant to Section 2.03(b), together with all rights of the
Depositor to require the Seller to cure any breach thereof or to repurchase or
substitute for any affected Mortgage Loan in accordance with this Agreement.

         The representations and warranties in this Section 2.04 shall survive
delivery of the Mortgage Files to the Trustee. Upon discovery by the Depositor
or the Trustee of any breach of any of the representations and warranties in
this Section that materially and adversely affects the interest of the
Certificateholders, the party discovering the breach shall give prompt written
notice to the others, the NIM Insurer, and to each Rating Agency. If the NIM
Insurer discovers such a breach, it may notify the parties to this Agreement and
each Rating Agency.

         Section 2.05  DELIVERY OF OPINION OF COUNSEL IN CONNECTION WITH
                       SUBSTITUTIONS AND REPURCHASES.

         (a) Notwithstanding any contrary provision of this Agreement, no
substitution pursuant to Section 2.01, 2.02, 2.03 or 2.05 shall be made more
than ninety (90) days after the Closing Date unless the Seller delivers to the
Trustee an Opinion of Counsel, which Opinion of Counsel shall not be at the
expense of either the Trustee or the Trust Fund, addressed to the Trustee, to
the effect that such substitution will not (i) result in the imposition of the
tax on "prohibited transactions" on the Trust Fund or contributions after the
Startup Date, as defined in Sections 860F(a)(2) and 860G(d) of the Code,
respectively, or (ii) cause any REMIC created under this Agreement to fail to
qualify as a REMIC at any time that any Certificates are outstanding.

         (b) Upon discovery by the Depositor, the Seller, the Master Servicer or
the Trustee that any Mortgage Loan does not constitute a "qualified mortgage"
within the meaning of Section 860G(a)(3) of the Code, the party discovering such
fact shall promptly (and in any event within five (5) Business Days of
discovery) give written notice thereof to the other parties and the NIM Insurer.
If the NIM Insurer discovers such facts, it may notify the parties to this
Agreement. In connection therewith, the Trustee shall require the Seller, at the
Seller's option, to either (i) substitute, if the conditions in Section 2.03(c)
with respect to substitutions are satisfied, a Substitute Mortgage Loan for the
affected Mortgage Loan, or (ii) repurchase the affected Mortgage Loan within
ninety (90) days of such discovery in the same manner as it would a Mortgage
Loan for a breach of representation or warranty made pursuant to Section 2.03.
The Trustee shall reconvey to the Seller the Mortgage Loan to be released
pursuant hereto in the same manner, and on the same terms, as it would a
Mortgage Loan repurchased for breach of a representation or warranty contained
in Section 2.03.

         Section 2.06 EXECUTION AND DELIVERY OF CERTIFICATES.

         The Trustee acknowledges the transfer and assignment to it of the Trust
Fund and, concurrently with the transfer and assignment, has executed and
delivered to or upon the order of the Depositor, the Certificates in authorized
denominations evidencing directly or indirectly the entire ownership of the
Trust Fund. The Trustee agrees to hold the Trust Fund and exercise the rights
referred to above for the benefit of all present and future Holders of the
Certificates.

         Section 2.07 CONVEYANCE OF SUBSEQUENT MORTGAGE LOANS.

         (a) Subject to the conditions set forth in paragraph (b) below in
consideration of the Trustee's delivery on the Subsequent Transfer Dates to or
upon the order of the Depositor of all or a portion of the balance of funds in
the Pre-Funding Accounts, the Depositor shall on any Subsequent Transfer Date
sell, transfer, assign, set over and convey without recourse to the Trust Fund
but subject to the other terms and provisions of this Agreement all of the
right, title and interest of the Depositor in an to (i) the Subsequent Mortgage
Loans identified on the Mortgage Loan Schedule attached to the related
Subsequent Transfer Instrument delivered by the Depositor on such Subsequent
Transfer Date, (ii) all interest accruing thereon on and after the Subsequent
Cut-off Date and all collections in respect of interest and principal due after
the Subsequent Cut-off Date and (iii) all items with respect to such Subsequent
Mortgage Loans to be delivered pursuant to Section 2.01 and the other items in
the related Mortgage Files; provided, however, that the Depositor reserves and
retains all right, title and interest in and to principal received and interest
accruing on the Subsequent Mortgage Loans prior to the related Subsequent
Cut-off Date. The transfer to the Trustee by the Depositor of the Subsequent
Mortgage Loans identified on the Mortgage Loan Schedule shall be absolute and is
intended by the Depositor, the Master Servicer, the Trustee and the
Certificateholders to constitute and to be treated as a sale of the Subsequent
Mortgage Loans by the Depositor to the Trust Fund. The related Mortgage File for
each Subsequent Mortgage Loan shall be delivered to the Trustee at least three
(3) Business Days prior to the related Subsequent Transfer Date.

         The purchase price paid by the Trustee from amounts released from the
Group I Pre-Funding Account or the Group II Pre-Funding Account, as applicable,
shall be 100% of the aggregate Stated Principal Balance of the related
Subsequent Mortgage Loans so transferred (as identified on the Mortgage Loan
Schedule attached to the related Subsequent Transfer Instrument provided by the
Depositor). This Agreement shall constitute a fixed-price contract in accordance
with Section 860G(a)(3)(A)(ii) of the Code.

         (b) The Depositor shall transfer to the Trustee for deposit in the pool
of Mortgage Loans the Subsequent Mortgage Loans and the other property and
rights related thereto as described in paragraph (a) above, and the Trustee
shall release funds from the Group I Pre-Funding Account or the Group II
Pre-Funding Account, as applicable, only upon the satisfaction of each of the
following conditions on or prior to the related Subsequent Transfer Date:

                  (i) the Depositor shall have provided the Trustee and the
         Rating Agencies with a timely Addition Notice and shall have provided
         any information reasonably requested by the Trustee with respect to the
         Subsequent Mortgage Loans;

                  (ii) the Depositor shall have delivered to the Trustee a duly
         executed Subsequent Transfer Instrument, which shall include a Mortgage
         Loan Schedule listing the Subsequent Mortgage Loans, and the Seller
         shall have delivered a computer file acceptable to the Trustee
         containing such Mortgage Loan Schedule to the Trustee at least three
         (3) Business Days prior to the related Subsequent Transfer Date;

                  (iii) as of each Subsequent Transfer Date, as evidenced by
         delivery of the Subsequent Transfer Instrument, the Depositor shall not
         be insolvent nor shall it have been rendered insolvent by such transfer
         nor shall it be aware of any pending insolvency;

                  (iv) such sale and transfer shall not result in a material
         adverse tax consequence to the Trust Fund or the Certificateholders;

                  (v) the Funding Period shall not have terminated;

                  (vi) the Depositor shall not have selected the Subsequent
         Mortgage Loans in a manner that it believed to be adverse to the
         interests of the Certificateholders;

                  (vii) the NIM Insurer, if any, must consent to such
         conveyance;

                  (viii) the Depositor shall have delivered to the Trustee a
         Subsequent Transfer Instrument confirming the satisfaction of the
         conditions precedent specified in this Section 2.07 and, pursuant to
         the Subsequent Transfer Instrument, assigned to the Trustee without
         recourse for the benefit of the Certificateholders all the right, title
         and interest of the Depositor, in, to and under this Agreement, to the
         extent of the Subsequent Mortgage Loans;

                  (ix) the Depositor shall have delivered to the Trustee an
         Opinion of Counsel addressed to the Trustee and the Rating Agencies
         with respect to the transfer of the Subsequent Mortgage Loans
         substantially in the form of the Opinion of Counsel delivered to the
         Trustee on the Closing Date regarding the true sale of the Subsequent
         Mortgage Loans.

         (c) The obligation of the Trust Fund to purchase a Subsequent Mortgage
Loan on any Subsequent Transfer Date is subject to the satisfaction of the
conditions set forth in the immediately preceding paragraph and the accuracy of
the following representations and warranties with respect to the each such
Subsequent Mortgage Loan determined as of the applicable Subsequent Cut-off
Date: (i) such Subsequent Mortgage Loan may not be 30 or more days delinquent as
of the applicable Subsequent Cut-off Date; provided, however, that such
Subsequent Mortgage Loans may have a first payment date occurring on or after
the applicable Subsequent Cut-off Date and, therefore, such Subsequent Mortgage
Loan could not have been delinquent as of such Subsequent Cut-off Date; (ii) the
remaining term to maturity of such Subsequent Mortgage Loan will not be less
than 180 months and will not exceed 360 months from its first payment date;
(iii) the Subsequent Mortgage Loan may not provide for negative amortization;
(iv) the Subsequent Mortgage Loan will not have a Loan-to-Value Ratio greater
than 100.00%; (v) such Subsequent Mortgage Loans will have, as of the related
Subsequent Cut-off Date, a weighted average age since origination not in excess
of two months; (vi) such Subsequent Mortgage Loan will not have a Mortgage Rate
less than 3.500% or greater than 14.000%; (vii) such Subsequent Mortgage Loan
will have been serviced by the Master Servicer since origination or purchase by
the Seller in accordance with its standard servicing practices; (viii) such
Subsequent Mortgage Loan will have a first payment date occurring on or before
July 1, 2005; (ix) such Subsequent Mortgage Loan will have a principal balance
no greater than $1,000,000; and (x) such Subsequent Mortgage Loan will have been
underwritten in accordance with the criteria set forth under "--Underwriting
Standards of the Seller" in the Prospectus Supplement.

         (d) Following the purchase of any Subsequent Mortgage Loan by the Trust
Fund to be included in Loan Group I, the Mortgage Loans in Loan Group I
(including the related Subsequent Mortgage Loans) will as of the related
Subsequent Cut-off Date: (i) have an original term to stated maturity of not
more than 360 months from the first payment date thereon; (ii) have a Mortgage
Rate of not less than 3.500% and not more than 14.000%; (iii) have a weighted
average Loan-to-Value Ratio of approximately 78.000%; (iv) have no Mortgage Loan
with a principal balance in excess of $1,000,000; (v) will consist of Mortgage
Loans with Prepayment Charges representing no less than approximately 76.000% of
the Mortgage Loans in Loan Group I; (vi) with respect to the adjustable-rate
Mortgage Loans in Loan Group I, have a weighted average Margin of approximately
5.480%; and (vii) have a weighted average FICO Score of approximately 629; in
each case measured by aggregate principal balance of the Mortgage Loans in Loan
Group I as of the Cut-off Date or Subsequent Cut-off Date applicable to each
Mortgage Loan. For purposes of the calculations described in this paragraph,
percentages of the Mortgage Loans in Loan Group I will be based on the principal
balance of the Closing Date Mortgage Loans in Loan Group I as of the Cut-off
Date and the principal balance of the Subsequent Mortgage Loans included in Loan
Group I as of the related Subsequent Cut-off Date.

         Following the purchase of any Subsequent Mortgage Loan by the Trust
Fund to be included in Loan Group II, the Mortgage Loans in Loan Group II
(including the related Subsequent Mortgage Loans) will as of the related
Subsequent Cut-off Date: (i) have an original term to stated maturity of not
more than 360 months from the first payment date thereon; (ii) have a Mortgage
Rate of not less than 3.500% and not more than 14.000%; (iii) have a weighted
average Loan-to-Value Ratio of approximately 78.50%; (iv) have no Mortgage Loan
with a principal balance in excess of $1,000,000; (v) will consist of Mortgage
Loans with Prepayment Charges representing no less than approximately 75.00% of
the Mortgage Loans in Loan Group II; (vi) with respect to the adjustable-rate
Mortgage Loans in Loan Group II, have a weighted average Margin of approximately
5.375%; and (vii) have a weighted average FICO Score of approximately 637; in
each case measured by aggregate principal balance of the Mortgage Loans in Loan
Group II as of the Cut-off Date or Subsequent Cut-off Date applicable to each
Mortgage Loan. For purposes of the calculations described in this paragraph,
percentages of the Mortgage Loans in Loan Group II will be based on the
principal balance of the Closing Date Mortgage Loans in Loan Group II as of the
Cut-off Date and the principal balance of the Subsequent Mortgage Loans in Loan
Group II as of the related Subsequent Cut-off Date.

         (e) Notwithstanding the foregoing, any Subsequent Mortgage Loan may be
rejected by any Rating Agency if the inclusion of any such Subsequent Mortgage
Loan would adversely affect the ratings of any Class of Certificates. At least
one (1) Business Day prior to the Subsequent Transfer Date, each Rating Agency
shall notify the Trustee as to which Subsequent Mortgage Loans, if any, shall
not be included in the transfer on the Subsequent Transfer Date; provided,
however, that the Seller shall have delivered to each Rating Agency at least
three (3) Business Days prior to such Subsequent Transfer Date a computer file
acceptable to each Rating Agency describing the characteristics specified in
paragraphs (c) and (d) above.

         Section 2.08 REMIC MATTERS.

         The Preliminary Statement sets forth the designations and "latest
possible maturity date" for federal income tax purposes of all interests created
hereby.

                  (A) ISSUANCE OF THE REMIC I REGULAR INTERESTS AND THE CLASS
                      R-I INTEREST.

                  The Trustee acknowledges the assignment to it of the Mortgage
Loans and the delivery to it of the Mortgage Files, subject to the provisions of
Section 2.01 and Section 2.02, together with the assignment to it of all other
assets included in REMIC I, the receipt of which is hereby acknowledged.
Concurrently with such assignment and delivery and in exchange therefor, the
Trustee, pursuant to the written request of the Depositor executed by an officer
of the Depositor, has executed, authenticated and delivered to or upon the order
of the Depositor, the Class R-I Interest in authorized denominations. The
interests evidenced by the Class R-I Interest, together with the REMIC I Regular
Interests, constitute the entire beneficial ownership interest in REMIC I. The
rights of the Class R Certificateholders and REMIC II (as holder of the REMIC I
Regular Interests) to receive distributions from the proceeds of REMIC I in
respect of the Class R-I Interest and the REMIC I Regular Interests,
respectively, and all ownership interests evidenced or constituted by the Class
R-I Interest and the REMIC I Regular Interests, shall be as set forth in this
Agreement.

                  (B) CONVEYANCE OF THE REMIC I REGULAR INTERESTS; REMIC I,
                      REMIC II AND REMIC III BY THE TRUSTEE.

                  The Depositor, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse all the right, title and interest of the Depositor
in and to the assets described in the definition of REMIC I for the benefit of
the Holders of the REMIC I Regular Interests (which are uncertificated) and the
Class R Certificates (in respect of the Class R-I Interest). The Trustee
acknowledges receipt of the assets described in the definition of REMIC I and
declares that it holds and shall hold the same in trust for the exclusive use
and benefit of the Holders of the REMIC I Regular Interests and the Class R
Certificates (in respect of the Class R-I Interest). The interests evidenced by
the Class R-I Interest, together with the REMIC I Regular Interests, constitute
the entire beneficial ownership interest in REMIC I.

                  The Trustee, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse all the right, title and interest in and to the
REMIC I Regular Interests (which are uncertificated) and the Class R
Certificates (in respect of the Class R-II Interest). The Trustee acknowledges
receipt of the REMIC I Regular Interests and declares that it holds and shall
hold the same in trust for the exclusive use and benefit of the Holders of the
REMIC II Regular Interests and the Class R Certificates (in respect of the Class
R-II Interest). The interests evidenced by the Class R-II Interest, together
with the REMIC II Regular Interests, constitute the entire beneficial ownership
interest in REMIC II.

                  The Trustee, concurrently with the execution and delivery
hereof, does hereby transfer, assign, set over and otherwise convey in trust to
the Trustee without recourse all the right, title and interest in and to the
REMIC II Regular Interests (which are uncertificated) for the benefit of the
Holders of the Regular Certificates and the Class R Certificates (in respect of
the Class R-III Interest). The Trustee acknowledges receipt of the REMIC II
Regular Interests and declares that it holds and shall hold the same in trust
for the exclusive use and benefit of the Holders of the Regular Certificates and
the Class R Certificates (in respect of the Class R-III Interest). The interests
evidenced by the Class R-III Interest, together with the Regular Certificates,
constitute the entire beneficial ownership interest in REMIC III.

                  (C) ISSUANCE OF CLASS R CERTIFICATES.

                  The Trustee acknowledges the assignment to it of the REMIC I
Regular Interests and, concurrently therewith and in exchange therefor, pursuant
to the written request of the Depositor executed by an officer of the Depositor
or the Trustee has executed, authenticated and delivered to or upon the order of
the Depositor, the Class R Certificates in authorized denominations. The
interests evidenced by the Class R Certificates, together with the REMIC I
Regular Interests, the REMIC II Regular Interests and the REMIC III
Certificates, constitute the entire beneficial ownership interest in REMIC I,
REMIC II and REMIC III.

                  Section 2.09 COVENANTS OF THE MASTER SERVICER.

         The Master Servicer hereby covenants to the Depositor and the Trustee
as follows:

         (a) the Master Servicer shall comply in the performance of its
obligations under this Agreement with all reasonable rules and requirements of
the insurer under each Required Insurance Policy; and

         (b) no written information, certificate of an officer, statement
furnished in writing or written report delivered to the Depositor, any affiliate
of the Depositor, the NIM Insurer, or the Trustee and prepared by the Master
Servicer pursuant to this Agreement will contain any untrue statement of a
material fact or omit to state a material fact necessary to make such
information, certificate, statement, or report not misleading.

<PAGE>

                                  ARTICLE III

                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

         Section 3.01 MASTER SERVICER TO SERVICE MORTGAGE LOANS.

         For and on behalf of the Certificateholders, the Master Servicer shall
service and administer the Mortgage Loans in accordance with this Agreement and
the Servicing Standard.

         The Master Servicer shall not make or permit any modification, waiver,
or amendment of any term of any Mortgage Loan that would cause the Trust Fund to
fail to qualify as a REMIC or result in the imposition of any tax under Section
860F(a) or Section 860G(d) of the Code.

         Without limiting the generality of the foregoing, the Master Servicer,
in its own name or in the name of the Depositor and the Trustee, is hereby
authorized and empowered by the Depositor and the Trustee, when the Master
Servicer believes it appropriate in its reasonable judgment, to execute and
deliver, on behalf of the Trustee, the Depositor, the Certificateholders, or any
of them, any instruments of satisfaction or cancellation, or of partial or full
release or discharge, and all other comparable instruments, with respect to the
Mortgage Loans, and with respect to the Mortgaged Properties held for the
benefit of the Certificateholders. The Master Servicer shall prepare and deliver
to the Depositor or the Trustee any documents requiring execution and delivery
by either or both of them appropriate to enable the Master Servicer to service
and administer the Mortgage Loans to the extent that the Master Servicer is not
permitted to execute and deliver such documents pursuant to the preceding
sentence. Upon receipt of the documents, the Depositor or the Trustee shall
execute the documents and deliver them to the Master Servicer.

         The Master Servicer further is authorized and empowered by the Trustee,
on behalf of the Certificateholders and the Trustee, in its own name or in the
name of the Subservicer, when the Master Servicer or the Subservicer, as the
case may be, believes it appropriate in its best judgment to register any
Mortgage Loan on the MERS(R) System, or cause the removal from the registration
of any Mortgage Loan on the MERS(R) System, to execute and deliver, on behalf of
the Trustee and the Certificateholders or any of them, any and all instruments
of assignment and other comparable instruments with respect to such assignment
or re-recording of a Mortgage in the name of MERS, solely as nominee for the
Trustee and its successors and assigns.

         In accordance with and to the extent of the Servicing Standard, the
Master Servicer shall advance funds necessary to effect the payment of taxes and
assessments on the Mortgaged Properties, which advances shall be reimbursable in
the first instance from related collections from the Mortgagors pursuant to
Section 3.07, and further as provided in Section 3.09. The costs incurred by the
Master Servicer in effecting the timely payments of taxes and assessments on the
Mortgaged Properties and related insurance premiums shall not, for the purpose
of calculating monthly distributions to the Certificateholders, be added to the
Stated Principal Balances of the related Mortgage Loans, notwithstanding that
the Mortgage Loans so permit.

         Section 3.02  SUBSERVICING; ENFORCEMENT OF THE OBLIGATIONS OF
                       SUBSERVICERS.

         (a) The Master Servicer may arrange for the subservicing of any
Mortgage Loan by a subservicer (a "SUBSERVICER") pursuant to a subservicing
agreement reasonably acceptable to the NIM Insurer. The Master Servicer may not
enter into any subservicing agreement if as a result any Class of the
Certificates would be downgraded or have their rating withdrawn by any Rating
Agency. The subservicing arrangement and the related subservicing agreement must
provide for the servicing of the Mortgage Loans in a manner consistent with the
servicing arrangements contemplated hereunder. Unless the context otherwise
requires, references in this Agreement to actions taken or to be taken by the
Master Servicer in servicing the Mortgage Loans include actions taken or to be
taken by a Subservicer on behalf of the Master Servicer. Notwithstanding
anything in any subservicing agreement or this Agreement relating to agreements
or arrangements between the Master Servicer and a Subservicer or references to
actions taken through a Subservicer or otherwise, the Master Servicer shall
remain obligated and liable to the Trustee and Certificateholders for the
servicing and administration of the Mortgage Loans in accordance with this
Agreement without diminution of its obligation or liability by virtue of the
subservicing agreements or arrangements or by virtue of indemnification from the
Subservicer and to the same extent and under the same terms as if the Master
Servicer alone were servicing and administering the Mortgage Loans. All actions
of each Subservicer performed pursuant to the related subservicing agreement
shall be performed as agent of the Master Servicer with the same effect as if
performed directly by the Master Servicer. The Master Servicer, with the consent
of the NIM Insurer, may terminate any subservicing agreement and the rights and
obligations of any Subservicer pursuant to any subservicing agreement in
accordance with the terms of such subservicing agreement.

         (b) For purposes of this Agreement, the Master Servicer shall be deemed
to have received any collections, recoveries or payments with respect to the
Mortgage Loans that are received by the Subservicer regardless of whether the
payments are remitted by the Subservicer to the Master Servicer.

         Section 3.03  [RESERVED].

         Section 3.04  NO CONTRACTUAL RELATIONSHIP BETWEEN SUBSERVICERS AND THE
                       TRUSTEE.

         Any subservicing arrangement that may be entered into and any other
transactions or services relating to the Mortgage Loans involving a Subservicer
in its capacity as such shall be deemed to be solely between the Subservicer and
the Master Servicer alone, and the Trustee, the NIM Insurer, and
Certificateholders shall not be deemed parties thereto and shall have no claims,
rights, obligations, duties, or liabilities with respect to the Subservicer in
its capacity as such except as stated in Section 3.05.

         Section 3.05  TRUSTEE TO ACT AS MASTER SERVICER.

         If the Master Servicer for any reason is no longer the Master Servicer
hereunder (including because of an Event of Default), the Trustee or its
successor shall thereupon assume all of the rights and obligations of the Master
Servicer hereunder arising thereafter, except that the Trustee shall not be:

         (i) liable for losses of the Master Servicer pursuant to Section 3.10
or any acts or omissions of the predecessor Master Servicer hereunder,

         (ii) obligated to make Advances if it is prohibited from doing so by
applicable law,

         (iii) obligated to effectuate repurchases or substitutions of Mortgage
Loans hereunder, including repurchases or substitutions pursuant to Section
2.01, 2.02, 2.03 or 2.05,

         (iv) responsible for expenses of the Master Servicer pursuant to
Section 2.03, or

         (v) deemed to have made any representations and warranties of the
Master Servicer hereunder. Any assumption shall be subject to Section 7.02.

         Every subservicing agreement entered into by the Master Servicer shall
contain a provision giving the successor Master Servicer the option to terminate
the agreement if a successor Master Servicer is appointed.

         If the Master Servicer is no longer the Master Servicer for any reason
(including because of any Event of Default), the Trustee (or any other successor
Master Servicer) may, at its option, succeed to any rights and obligations of
the Master Servicer under any subservicing agreement in accordance with its
terms. The Trustee (or any other successor Master Servicer) shall not incur any
liability or have any obligations in its capacity as successor Master Servicer
under a subservicing agreement arising before the date of succession unless it
expressly elects to succeed to the rights and obligations of the Master Servicer
thereunder; and the Master Servicer shall not thereby be relieved of any
liability or obligations under the subservicing agreement arising before the
date of succession.

         The Master Servicer shall, upon request of the Trustee, but at the
expense of the Master Servicer, deliver to the assuming party all documents and
records relating to each subservicing agreement and the Mortgage Loans then
being serviced thereunder and an accounting of collected amounts held by it and
otherwise use its best efforts to effect the orderly and efficient transfer of
the subservicing agreement to the assuming party.

         Notwithstanding anything else in this Agreement to the contrary, in no
event shall the Trustee be liable for any servicing fee or for any differential
in the amount of the servicing fee paid under this Agreement and the amount
necessary to induce any successor Master Servicer to act as successor Master
Servicer under this Agreement and the transactions provided for in this
Agreement.

         Section 3.06  COLLECTION OF MORTGAGE LOAN PAYMENTS; SERVICING ACCOUNTS;
                       COLLECTION ACCOUNT; CERTIFICATE ACCOUNT; DISTRIBUTION
                       ACCOUNT; EXCESS RESERVE FUND ACCOUNT.

         (a) In accordance with and to the extent of the Servicing Standard, the
Master Servicer shall make reasonable efforts in accordance with the customary
and usual standards of practice of prudent mortgage servicers to collect all
payments called for under the Mortgage Loans to the extent the procedures are
consistent with this Agreement and any related Required Insurance Policy.
Consistent with the foregoing, the Master Servicer may in its discretion (i)
waive any late payment charge or, subject to Section 3.20, any Prepayment Charge
or penalty interest in connection with the prepayment of a Mortgage Loan, (ii)
modify any delinquent or defaulted Mortgage Loan (including modifications that
change the Mortgage Rate, forgive the payment of principal or interest or extend
the final maturity date of that Mortgage Loan); provided, that such modification
is consistent with the Servicing Standard and if in the Master Servicer's
determination such modification is not materially adverse to the interests of
the Certificateholders (taking into account any estimated loss that might result
absent such action) and is expected to minimize the loss of such Mortgage Loan;
provided, however, that the Master Servicer shall not initiate new lending to
such Mortgagor through the trust, and (iii) extend the due dates for payments
due on a Mortgage Note for a period not greater than 125 days. However, the
Master Servicer cannot extend the maturity of any Mortgage Loan past the date on
which the final payment is due on the latest maturing Mortgage Loan in the
applicable Loan Group as of the Cut-off Date. In the event of any such
arrangement, the Master Servicer shall make Advances on the related Mortgage
Loan in accordance with Section 4.01 during the scheduled period in accordance
with the amortization schedule of the Mortgage Loan without modification thereof
because of the arrangements. In addition, the NIM Insurer's prior written
consent shall be required for any modification, waiver, or amendment if the
amendment of the aggregate number of outstanding Mortgage Loans that have been
modified, waived, and amended exceeds 5% of the aggregate number of Mortgage
Loans. The Master Servicer shall not be required to institute or join in
litigation with respect to collection of any payment (whether under a Mortgage,
Mortgage Note, or otherwise or against any public or governmental authority with
respect to a taking or condemnation) if it reasonably believes that enforcing
the provision of the Mortgage or other instrument pursuant to which the payment
is required is prohibited by applicable law. The Master Servicer shall not sell
any delinquent or defaulted Mortgage Loan.

         (b) The Master Servicer shall establish and maintain (or, if a Mortgage
Loan is subserviced by another Person, cause the related Subservicer to
establish and maintain) one or more Servicing Accounts into which the Master
Servicer shall deposit on a daily basis within one (1) Business Day of receipt,
the following payments and collections received by it or remitted by any
Subservicer in respect of Mortgage Loans after the Cut-off Date (other than in
respect of principal and interest due on the Mortgage Loans by the Cut-off
Date):

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

                  (ii) all payments on account of interest on the Mortgage Loans
         and, in cases where the Master Servicer maintains the Servicing
         Account, the related Master Servicing Fee; and

                  (iii) all Insurance Proceeds, Liquidation Proceeds and
         Subsequent Recoveries, other than proceeds to be applied to the
         restoration or repair of the Mortgaged Property or released to the
         Mortgagor in accordance with the Master Servicer's normal servicing
         procedures.

         By the Determination Date in each calendar month, the Master Servicer
shall (a) withdraw from the Servicing Account all amounts on deposit therein
pursuant to clauses (i) and (ii) above (other than amounts attributable to a
Principal Prepayment in Full) and (b) deposit such amounts in the Collection
Account. By the Business Day in each calendar month following the deposit in the
Servicing Account of amounts on deposit therein pursuant to clause (iii) above
or pursuant to any Principal Prepayment in Full, the Master Servicer shall (a)
withdraw such amounts from the Servicing Account and (b) deposit such amounts in
the Collection Account.

         (c) The Master Servicer shall establish and maintain a segregated
Collection Account into which the Master Servicer shall deposit, as and when
required by paragraph (b) of this Section 3.06, all amounts required to be
deposited into the Collection Account pursuant to that paragraph.

         (d) The Master Servicer shall establish and maintain a segregated
Certificate Account into which the Master Servicer shall deposit on a daily
basis (i) within one (1) Business Day of deposit in the Collection Account (in
the case of items (i) through (iii) below) and (2) within one (1) Business Day
of receipt (in the case of all other items), except as otherwise specified
herein, the following payments and collections received by it or remitted by any
Subservicer in respect of Mortgage Loans after the Cut-off Date (other than in
respect of principal and interest due on the Mortgage Loans by the Cut-off Date)
and the following amounts required to be deposited hereunder:

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

                  (ii) all payments on account of interest on the Mortgage
         Loans, net of the related Master Servicing Fee;

                  (iii) all Insurance Proceeds, Subsequent Recoveries and
         Liquidation Proceeds, other than proceeds to be applied to the
         restoration or repair of the Mortgaged Property or released to the
         Mortgagor in accordance with the Master Servicer's normal servicing
         procedures;

                  (iv) [RESERVED];

                  (v) any amounts required to be deposited by the Master
         Servicer pursuant to Sections 3.12 and 3.14;

                  (vi) all Purchase Prices from the Master Servicer or Seller
         and all Substitution Adjustment Amounts; (vii) all Advances made by the
         Master Servicer pursuant to Section 4.01;

                  (viii) any other amounts required to be deposited hereunder;
         and

                  (ix) all Prepayment Charges collected.

         In addition, with respect to any Mortgage Loan that is subject to a
buydown agreement, on each Due Date for the Mortgage Loan, in addition to the
monthly payment remitted by the related Mortgagor, the Master Servicer shall
cause funds to be deposited into the Certificate Account in an amount required
to cause an amount of interest to be paid with respect to the Mortgage Loan
equal to the amount of interest that has accrued on the Mortgage Loan from the
preceding Due Date at the Mortgage Rate net of the Master Servicing Fee on that
date.

         The foregoing requirements for remittance by the Master Servicer shall
be exclusive. Without limiting the generality of the foregoing, payments in the
nature of late payment charges or assumption fees, if collected, need not be
remitted by the Master Servicer. If the Master Servicer remits any amount not
required to be remitted, it may at any time withdraw that amount from the
Certificate Account, any provision herein to the contrary notwithstanding. The
withdrawal or direction may be accomplished by delivering written notice of it
to the Trustee or any other institution maintaining the Certificate Account that
describes the amounts deposited in error in the Certificate Account. The Master
Servicer shall maintain adequate records with respect to all withdrawals made
pursuant to this Section 3.06. All funds deposited in the Certificate Account
shall be held in trust for the Certificateholders until withdrawn in accordance
with Section 3.09.

         The Trustee shall establish and maintain the Excess Reserve Fund
Account, on behalf of the Class C Certificateholder, to secure its limited
recourse obligation to pay to the other Certificateholders Net WAC Cap Carry
Forward Amounts.

         On each Distribution Date, the Trustee shall deposit the amount of any
Net WAC Cap Payment for that date into the Excess Reserve Fund Account.

         The Trustee shall invest amounts held in the Excess Reserve Fund
Account only in Permitted Investments, which shall mature not later than the
Business Day preceding the next Distribution Date (except that if such Permitted
Investment is an obligation of the institution that maintains such account, then
such Permitted Investment shall mature not later than the next Distribution
Date) and, in each case, shall not be sold or disposed of before its maturity.
The Master Servicer shall direct the Trustee in writing with respect to
investment of amounts in the Excess Reserve Fund Account.

         On each Distribution Date on which a Net WAC Cap Carry Forward Amount
exists for any Class of Certificates, the Trustee shall withdraw from the Excess
Reserve Fund Account amounts necessary to pay to the Class of Certificates the
Net WAC Cap Carry Forward Amount. Such payments shall be allocated to those
Classes as provided in Section 4.02(IV). Any Net WAC Cap Carry Forward Amounts
paid by the Trustee to the Certificateholders shall be accounted for by the
Trustee as amounts paid to the Holder of the Class C Certificate. In addition,
the Trustee shall account for the Certificateholders' rights to receive payments
of Net WAC Cap Carry Forward Amounts as rights in a limited recourse interest
rate cap contract written by the Class C Certificateholder in favor of the other
Certificateholders.

         The Trustee shall account for the Excess Reserve Fund Account as an
outside reserve fund within the meaning of Treasury Regulation Section
1.860G-2(h) and not an asset of any REMIC created pursuant to this Agreement.
The owner of the Excess Reserve Fund Account is the Class C Certificateholder.
The Trustee shall treat amounts transferred by REMIC III to the Excess Reserve
Fund Account as distributions to the Class C Certificateholder (and from the
Class C Certificateholder to the Excess Reserve Fund Account), other than
amounts paid to the Excess Reserve Fund Account by the Cap Contracts, for all
federal income tax purposes. Accordingly, each Class of Certificates, other than
the Class C Certificate and Class P Certificate, will comprise two components -
a REMIC Regular Interest and an interest in a cap contract. The Trustee shall
allocate the issue price for a Class of Certificates between two components for
purposes of determining the issue price of the REMIC Regular Interest component.
The value of the right to receive payments from the Excess Reserve Fund Account
will be $83,000 with respect to the Group I Certificates, $65,000 with respect
to the Group II Certificates and $72,000 with respect to the Subordinated
Certificates.

         Notwithstanding any provision contained in this Agreement, the Trustee
shall not be required to make any payments from the Excess Reserve Fund Account
except as expressly stated in this Section 3.06(d).

         (e) [RESERVED];

         (f) The Trustee shall establish and maintain the Distribution Account
on behalf of the Certificateholders. The Trustee shall, promptly upon receipt,
deposit in the Distribution Account and retain therein the following:

                  (i) the aggregate amount remitted by the Master Servicer to
         the Trustee pursuant to Section 3.09(a);

                  (ii) any amount deposited by the Master Servicer pursuant to
         Section 3.06(g) in connection with any losses on Permitted Investments;
         and

                  (iii) any other amounts deposited hereunder that are required
         to be deposited in the Distribution Account.

         If the Master Servicer remits any amount not required to be remitted,
it may at any time direct the Trustee in writing to withdraw that amount from
the Distribution Account, any provision herein to the contrary notwithstanding.
The direction may be accomplished by delivering an Officer's Certificate to the
Trustee that describes the amounts deposited in error in the Distribution
Account. All funds deposited in the Distribution Account shall be held by the
Trustee in trust for the Certificateholders until disbursed in accordance with
this Agreement or withdrawn in accordance with Section 3.09. In no event shall
the Trustee incur liability for withdrawals from the Distribution Account at the
direction of the Master Servicer.

         (g) Each institution at which the Certificate Account is maintained
shall invest the funds therein as directed in writing by the Master Servicer in
Permitted Investments, which shall mature not later than the second Business Day
preceding the related Distribution Account Deposit Date (except that if the
Permitted Investment is an obligation of the institution that maintains the
account, then the Permitted Investment shall mature not later than the Business
Day preceding the Distribution Account Deposit Date) and shall not be sold or
disposed of before its maturity. All Permitted Investments shall be made in the
name of the Trustee, for the benefit of the Certificateholders. All income
realized from any investment of funds on deposit in the Certificate Account
shall be for the benefit of the Master Servicer as servicing compensation and
shall be remitted to it monthly as provided herein. The amount of any realized
losses on Permitted Investments in the Certificate Account shall promptly be
deposited by the Master Servicer in the Certificate Account. The Trustee shall
not be liable for the amount of any loss incurred in respect of any investment
or lack of investment of funds held in the Certificate Account and made in
accordance with this Section 3.06.

         (h) [RESERVED].

         (i) The Master Servicer shall notify the Trustee, the Seller, each
Rating Agency, and the Depositor of any proposed change of the location of the
Certificate Account, the Collection Account, the Excess Reserve Fund Account or
the Distribution Account not later than 30 days and not more than 45 days before
any change thereof.

         Section 3.07 COLLECTION OF TAXES, ASSESSMENTS, AND SIMILAR ITEMS ESCROW
                      ACCOUNTS.

         (a) To the extent required by the related Mortgage Note and not
violative of current law, the Master Servicer shall establish and maintain one
or more accounts (each, an "ESCROW ACCOUNT") and deposit and retain therein all
collections from the Mortgagors (or Servicing advances) for the payment of
taxes, assessments, hazard insurance premiums or comparable items for the
account of the Mortgagors. Nothing herein shall require the Master Servicer to
compel a Mortgagor to establish an Escrow Account in violation of applicable
law.

         (b) Withdrawals of amounts so collected from the Escrow Accounts may be
made only to effect timely payment of taxes, assessments, hazard insurance
premiums, condominium or PUD association dues, or comparable items, to reimburse
(without duplication) the Master Servicer out of related collections for any
payments made pursuant to Sections 3.01 (with respect to taxes and assessments
and insurance premiums) and 3.10 (with respect to hazard insurance), to refund
to any Mortgagors any sums determined to be overages, to pay interest, if
required by law or the related Mortgage or Mortgage Note, to Mortgagors on
balances in the Escrow Account or to clear and terminate the Escrow Account at
the termination of this Agreement in accordance with Section 9.01. The Escrow
Accounts shall not be a part of the Trust Fund.

         (c) The Master Servicer shall advance any payments referred to in
Section 3.07(a) that are not timely paid by the Mortgagors on the date when the
tax, premium or other cost for which such payment is intended is due, but the
Master Servicer shall be required so to advance only to the extent that such
advances, in the good faith judgment of the Master Servicer, will be recoverable
by the Master Servicer out of Insurance Proceeds, Liquidation Proceeds, or
otherwise.

         Section 3.08  ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING
                       THE MORTGAGE LOANS.

         The Master Servicer shall afford the Depositor, the NIM Insurer, and
the Trustee reasonable access to all records and documentation regarding the
Mortgage Loans and all accounts, insurance information, and other matters
relating to this Agreement, such access being afforded without charge, but only
upon reasonable request and during normal business hours at the office
designated by the Master Servicer.

         Upon reasonable advance notice in writing, the Master Servicer will
provide to each Certificateholder or Certificate Owner that is a savings and
loan association, bank, or insurance company certain reports and reasonable
access to information and documentation regarding the Mortgage Loans sufficient
to permit the Certificateholder or Certificate Owner to comply with applicable
regulations of the OTS or other regulatory authorities with respect to
investment in the Certificates. The Master Servicer shall be entitled to be
reimbursed by each such Certificateholder or Certificate Owner for actual
expenses incurred by the Master Servicer in providing the reports and access.

         Section 3.09  PERMITTED WITHDRAWALS FROM THE CERTIFICATE ACCOUNT, THE
                       DISTRIBUTION ACCOUNT, THE INTEREST COVERAGE ACCOUNT AND
                       THE EXCESS RESERVE FUND ACCOUNT.

         (a) The Master Servicer may (and, in the case of clause (ix) below,
shall) from time to time make withdrawals from the Certificate Account for the
following purposes:

                  (i) to pay to the Master Servicer or the related Subservicer
         (to the extent not previously retained) the servicing compensation to
         which it is entitled pursuant to Section 3.15, and to pay to the Master
         Servicer, as additional master servicing compensation, earnings on or
         investment income with respect to funds in or credited to the
         Certificate Account;

                  (ii) to reimburse the Master Servicer for unreimbursed
         Advances made by it, such right of reimbursement pursuant to this
         subclause (ii) being limited to amounts received on the Mortgage Loans
         in respect of which the Advance was made;

                  (iii) to reimburse the Master Servicer for any Nonrecoverable
         Advance previously made;

                  (iv) to reimburse the Master Servicer for Insured Expenses
         from the related Insurance Proceeds;

                  (v) to reimburse the Master Servicer for (a) unreimbursed
         Servicing Advances, such right of reimbursement pursuant to this
         sub-clause (a) made by it being limited to amounts received on the
         Mortgage Loans in respect of which the Sevicing Advance was made that
         represent late recoveries of the payments for which such advances were
         made pursuant to Section 3.01, Section 3.07 or Section 3.10 and (b) for
         unpaid Master Servicing Fees as provided in Section 3.12;

                  (vi) to pay to the purchaser, with respect to each Mortgage
         Loan or property acquired in respect thereof that has been purchased
         pursuant to Section 2.01, 2.02, 2.03 or 2.05, all amounts received
         thereon after the date of such purchase;

                  (vii) to reimburse the Seller, the Master Servicer, the NIM
         Insurer, or the Depositor for expenses incurred by any of them and
         reimbursable pursuant to Section 6.03;

                  (viii) to withdraw any amount deposited in the Certificate
         Account and not required to be deposited therein;

                  (ix) by the Distribution Account Deposit Date, to withdraw (1)
         Available Funds and the Trustee Fee for the Distribution Date, to the
         extent on deposit, and (2) the Prepayment Charges on deposit, and remit
         such amount to the Trustee for deposit in the Distribution Account; and

                  (x) to clear and terminate the Certificate Account upon
         termination of this Agreement pursuant to Section 9.01.

         The Master Servicer shall keep and maintain separate accounting, on a
Mortgage Loan by Mortgage Loan basis, to justify any withdrawal from the
Certificate Account pursuant to subclauses (i), (ii), (iv), (v), and (vi).
Before making any withdrawal from the Certificate Account pursuant to subclause
(iii), the Master Servicer shall deliver to the Trustee an Officer's Certificate
of a Servicing Officer indicating the amount of any previous Advance determined
by the Master Servicer to be a Nonrecoverable Advance and identifying the
related Mortgage Loans and their respective portions of the Nonrecoverable
Advance.

         (b) The Trustee shall withdraw funds from the Distribution Account for
distributions to Certificateholders in the manner specified in this Agreement
(and to withhold from the amounts so withdrawn the amount of any taxes that it
is authorized to withhold pursuant to the last paragraph of Section 8.11). In
addition, the Trustee may from time to time make withdrawals from the
Distribution Account for the following purposes:

                  (i) to pay to itself the Trustee Fee for the related
         Distribution Date;

                  (ii) to pay to the Master Servicer as additional servicing
         compensation earnings on or investment income with respect to funds in
         the Distribution Account;

                  (iii) to withdraw and return to the Master Servicer any amount
         deposited in the Distribution Account and not required to be deposited
         therein; and

                  (iv) to clear and terminate the Distribution Account upon
         termination of the Agreement pursuant to Section 9.01.

         (c) On each Distribution Date, the Trustee shall make withdrawals from
the Excess Reserve Fund Account for deposit in the Distribution Account of the
amount required pursuant to Section 3.06(d). Each institution at which the
Excess Reserve Fund Account is maintained shall invest the funds therein as
directed in writing by the Master Servicer in Permitted Investments, which shall
mature not later than the second Business Day preceding the related Distribution
Account Deposit Date (except that if the Permitted Investment is an obligation
of the institution that maintains the account, then the Permitted Investment
shall mature not later than the Business Day preceding the Distribution Account
Deposit Date) and shall not be sold or disposed of before its maturity. All
Permitted Investments shall be made in the name of the Trustee, for the benefit
of the Certificateholders. All income realized from any investment of funds on
deposit in the Excess Reserve Fund Account shall be for the benefit of the
Master Servicer as servicing compensation and shall be remitted to it monthly as
provided herein. The amount of any realized losses on Permitted Investments in
the Excess Reserve Fund Account shall promptly be deposited by the Master
Servicer in the Excess Reserve Fund Account. On the earlier of (i) the
termination of this Agreement pursuant to Section 9.01 and (ii) the Distribution
Date on which all of the Certificates (other than the Class C Certificates) are
reduced to zero, any amount remaining on deposit in the Excess Reserve Fund
Account after giving effect to the requirements of this section shall be
withdrawn by the Trustee and paid to the Class C Certificateholders.

         Section 3.10  MAINTENANCE OF HAZARD INSURANCE; MAINTENANCE OF PRIMARY
                       INSURANCE POLICIES.

         (a) The Master Servicer shall maintain, for each Mortgage Loan, hazard
insurance with extended coverage in an amount that is at least equal to the
LESSER OF

                  (i) the maximum insurable value of the improvements securing
         the Mortgage Loan AND

                  (ii) the GREATER OF (y) the outstanding principal balance of
         the Mortgage Loan AND (z) an amount such that the proceeds of the
         policy are sufficient to prevent the related Mortgagor or the mortgagee
         from becoming a co-insurer.

Each policy of standard hazard insurance shall contain, or have an accompanying
endorsement that contains, a standard mortgagee clause. Any amounts collected
under the policies (other than the amounts to be applied to the restoration or
repair of the related Mortgaged Property or amounts released to the Mortgagor in
accordance with the Master Servicer's normal servicing procedures) shall be
deposited in the Certificate Account. Any cost incurred in maintaining any
insurance shall not, for the purpose of calculating monthly distributions to the
Certificateholders or remittances to the Trustee for their benefit, be added to
the principal balance of the Mortgage Loan, notwithstanding that the Mortgage
Loan so permits. Such costs shall be recoverable by the Master Servicer out of
late payments by the related Mortgagor or out of Liquidation Proceeds to the
extent permitted by Section 3.09. No earthquake or other additional insurance is
to be required of any Mortgagor or maintained on property acquired in respect of
a Mortgage other than pursuant to any applicable laws and regulations in force
that require additional insurance. If the Mortgaged Property is located at the
time of origination of the Mortgage Loan in a federally designated special flood
hazard area and the area is participating in the national flood insurance
program, the Master Servicer shall maintain flood insurance for the Mortgage
Loan. The flood insurance shall be in an amount equal to the LEAST OF (i) the
original principal balance of the related Mortgage Loan, (ii) the replacement
value of the improvements that are part of the Mortgaged Property AND (iii) the
maximum amount of flood insurance available for the related Mortgaged Property
under the national flood insurance program.

         If the Master Servicer obtains and maintains a blanket policy insuring
against hazard losses on all of the Mortgage Loans, it shall have satisfied its
obligations in the first sentence of this Section 3.10. The policy may contain a
deductible clause on terms substantially equivalent to those commercially
available and maintained by comparable servicers. If the policy contains a
deductible clause and a policy complying with the first sentence of this Section
3.10 has not been maintained on the related Mortgaged Property, and if a loss
that would have been covered by the required policy occurs, the Master Servicer
shall deposit in the Certificate Account, without any right of reimbursement,
the amount not otherwise payable under the blanket policy because of the
deductible clause. In connection with its activities as Master Servicer of the
Mortgage Loans, the Master Servicer agrees to present, on behalf of itself, the
Depositor, and the Trustee for the benefit of the Certificateholders and the NIM
Insurer, claims under any blanket policy.

         (b) The Master Servicer shall not take any action that would result in
non-coverage under any applicable Primary Insurance Policy of any loss that, but
for the actions of the Master Servicer, would have been covered thereunder. The
Master Servicer shall not cancel or refuse to renew any Primary Insurance Policy
that is in effect at the date of the initial issuance of the Certificates and is
required to be kept in force hereunder unless the replacement Primary Insurance
Policy for the canceled or non-renewed policy is maintained with a Qualified
Insurer. The Master Servicer need not maintain any Primary Insurance Policy if
maintaining the Primary Insurance Policy is prohibited by applicable law. The
Master Servicer agrees, to the extent permitted by applicable law, to effect the
timely payment of the premiums on each Primary Insurance Policy, and any costs
not otherwise recoverable shall be recoverable by the Master Servicer from the
related liquidation proceeds. The Master Servicer shall maintain for as long as
each relevant Mortgage Loan is outstanding the mortgage insurance associated
with the Mortgage Loans identified on the Mortgage Loan Schedule as having
lender acquired mortgage insurance, and as to any other Mortgage Loans the
Master Servicer need not maintain any Primary Insurance Policy with respect to
any Mortgage Loan with a Loan-to-Value Ratio less than or equal to 80% as of any
date of determination or, based on a new appraisal, the principal balance of the
Mortgage Loan represents 80% or less of the new Appraised Value.

         In connection with its activities as Master Servicer of the Mortgage
Loans, the Master Servicer agrees to present, on behalf of itself, the Trustee,
the NIM Insurer, and the Certificateholders, claims to the insurer under any
Primary Insurance Policies and, in this regard, to take any reasonable action in
accordance with the Servicing Standard necessary to permit recovery under any
Primary Insurance Policies respecting defaulted Mortgage Loans. Any amounts
collected by the Master Servicer under any Primary Insurance Policies shall be
deposited in the Certificate Account or the Collection Account (as applicable).

         Section 3.11 ENFORCEMENT OF DUE-ON-SALE CLAUSES; ASSUMPTION AGREEMENTS.

         (a) Except as otherwise provided in this Section 3.11, when any
property subject to a Mortgage has been conveyed by the Mortgagor, the Master
Servicer shall to the extent that it has knowledge of the conveyance and in
accordance with the Servicing Standard, enforce any due-on-sale clause contained
in any Mortgage Note or Mortgage, to the extent permitted under applicable law
and governmental regulations, but only to the extent that enforcement will not
adversely affect or jeopardize coverage under any Required Insurance Policy.
Notwithstanding the foregoing, the Master Servicer is not required to exercise
these rights with respect to a Mortgage Loan if the Person to whom the related
Mortgaged Property has been conveyed or is proposed to be conveyed satisfies the
conditions contained in the Mortgage Note and Mortgage related thereto and the
consent of the mortgagee under the Mortgage Note or Mortgage is not otherwise so
required under the Mortgage Note or Mortgage as a condition to the transfer.

         If (i) the Master Servicer is prohibited by law from enforcing any
due-on-sale clause, (ii) coverage under any Required Insurance Policy would be
adversely affected, (iii) the Mortgage Note does not include a due-on-sale
clause or (iv) nonenforcement is otherwise permitted hereunder, the Master
Servicer is authorized, subject to Section 3.11(b), to take or enter into an
assumption and modification agreement from or with the person to whom the
property has been or is about to be conveyed, pursuant to which the person
becomes liable under the Mortgage Note and, unless prohibited by applicable
state law, the Mortgagor remains liable thereon. The Mortgage Loan must continue
to be covered (if so covered before the Master Servicer enters into the
agreement) by the applicable Required Insurance Policies.

         The Master Servicer, subject to Section 3.11(b), is also authorized
with the prior approval of the insurers under any Required Insurance Policies to
enter into a substitution of liability agreement with the Person, pursuant to
which the original Mortgagor is released from liability and the Person is
substituted as Mortgagor and becomes liable under the Mortgage Note.
Notwithstanding the foregoing, the Master Servicer shall not be deemed to be in
default under this Section 3.11 because of any transfer or assumption that the
Master Servicer reasonably believes it is restricted by law from preventing, for
any reason whatsoever.

         (b) Subject to the Master Servicer's duty to enforce any due-on-sale
clause to the extent provided in Section 3.11(a), in any case in which a
Mortgaged Property has been conveyed to a Person by a Mortgagor, and the Person
is to enter into an assumption agreement or modification agreement or supplement
to the Mortgage Note or Mortgage that requires the signature of the Trustee, or
if an instrument of release signed by the Trustee is required releasing the
Mortgagor from liability on the Mortgage Loan, the Master Servicer shall prepare
and deliver to the Trustee for signature and shall direct the Trustee, in
writing, to execute the assumption agreement with the Person to whom the
Mortgaged Property is to be conveyed, and the modification agreement or
supplement to the Mortgage Note or Mortgage or other instruments appropriate to
carry out the terms of the Mortgage Note or Mortgage or otherwise to comply with
any applicable laws regarding assumptions or the transfer of the Mortgaged
Property to the Person. In connection with any such assumption, no material term
of the Mortgage Note may be changed.

         In addition, the substitute Mortgagor and the Mortgaged Property must
be acceptable to the Master Servicer in accordance with its underwriting
standards as then in effect. Together with each substitution, assumption, or
other agreement or instrument delivered to the Trustee for execution by it, the
Master Servicer shall deliver an Officer's Certificate signed by a Servicing
Officer stating that the requirements of this subsection have been met in
connection therewith. The Master Servicer shall notify the Trustee that any
substitution or assumption agreement has been completed by forwarding to the
Trustee the original of the substitution or assumption agreement, which in the
case of the original shall be added to the related Mortgage File and shall, for
all purposes, be considered a part of the Mortgage File to the same extent as
all other documents and instruments constituting a part thereof. The Master
Servicer will retain any fee collected by it for entering into an assumption or
substitution of liability agreement as additional master servicing compensation.

         Section 3.12  REALIZATION UPON DEFAULTED MORTGAGE LOANS; REPURCHASE OF
                       CERTAIN MORTGAGE LOANS.

         (a) The Master Servicer shall use reasonable efforts in accordance with
the Servicing Standard to foreclose on or otherwise comparably convert the
ownership of Mortgaged Properties in respect of which the related Mortgage Loans
have come into and continue in default and as to which no satisfactory
arrangements can be made for collection of delinquent payments. In connection
with the foreclosure or other conversion, the Master Servicer shall follow the
Servicing Standard and shall follow the requirements of the insurer under any
Required Insurance Policy.

         Notwithstanding the foregoing, the Master Servicer shall not be
required to expend its own funds in connection with any foreclosure or towards
the restoration of any property unless it determines (i) that the restoration or
foreclosure will increase the proceeds of liquidation of the Mortgage Loan after
reimbursement to itself of restoration expenses and (ii) that restoration
expenses will be recoverable to it through Liquidation Proceeds (respecting
which it shall have priority for purposes of withdrawals from the Certificate
Account). The Master Servicer shall be responsible for all other costs and
expenses incurred by it in any foreclosure proceedings. The Master Servicer is
entitled to reimbursement thereof from the liquidation proceeds with respect to
the related Mortgaged Property, as provided in the definition of Liquidation
Proceeds. If the Master Servicer has knowledge that a Mortgaged Property that
the Master Servicer is contemplating acquiring in foreclosure or by deed in lieu
of foreclosure is located within one mile of any site listed in the Expenditure
Plan for the Hazardous Substance Clean Up Bond Act of 1984 or other site with
environmental or hazardous waste risks known to the Master Servicer, the Master
Servicer will, before acquiring the Mortgaged Property, consider the risks and
only take action in accordance with its established environmental review
procedures. The Master Servicer shall not foreclose any Mortgaged Property or
accept a deed in lieu of foreclosure for any Mortgaged Property without the
consent of the NIM Insurer if the Master Servicer has actual knowledge or notice
that the Mortgaged Property contains material hazardous wastes or substances
subject to the Hazardous Substance Clean Up Bond Act of 1984.

         With respect to any REO Property, the deed or certificate of sale shall
be taken in the name of the Trustee for the benefit of the Certificateholders,
or its nominee, on behalf of the Certificateholders. The Trustee's name shall be
placed on the title to the REO Property solely as the Trustee hereunder and not
in its individual capacity. The Master Servicer shall ensure that the title to
the REO Property references this Agreement and the Trustee's capacity hereunder.
Pursuant to its efforts to sell the REO Property, the Master Servicer shall
either itself or through an agent selected by the Master Servicer protect and
conserve the REO Property in accordance with the Servicing Standard as the
Master Servicer deems to be in the best interest of the Certificateholders for
the period before the sale of the REO Property.

         The Master Servicer shall perform the tax reporting and withholding
required by Sections 1445 and 6050J of the Code with respect to foreclosures and
abandonments, the tax reporting required by Section 6050H of the Code with
respect to the receipt of mortgage interest from individuals and, if required by
Section 6050P of the Code with respect to the cancellation of indebtedness by
certain financial entities, the preparation of any required tax and information
returns, in the form required, and delivery of the same to the Trustee for
filing.

         If the Trust Fund acquires any Mortgaged Property as aforesaid or
otherwise in connection with a default or imminent default on a Mortgage Loan,
the REO Property shall only be held temporarily, shall be actively marketed for
sale, and the Master Servicer shall dispose of the Mortgaged Property as soon as
practicable, and in any case before the end of the third calendar year following
the calendar year in which the Trust Fund acquires the property. Notwithstanding
any other provision of this Agreement, no Mortgaged Property acquired by the
Trust Fund shall be rented (or allowed to continue to be rented) or otherwise
used for the production of income by or on behalf of the Trust Fund.

         The decision of the Master Servicer to foreclose on a defaulted
Mortgage Loan shall be subject to a determination by the Master Servicer that
the proceeds of the foreclosure would exceed the costs and expenses of bringing
a foreclosure proceeding. The proceeds received from the maintenance of any REO
Properties, net of reimbursement to the Master Servicer for expenses incurred
(including any property or other taxes) in connection with maintenance of the
REO Properties and net of unreimbursed Master Servicing Fees, Advances and
Servicing Advances, shall be applied to the payment of principal of and interest
on the related defaulted Mortgage Loans (with interest accruing as though the
Mortgage Loans were still current and adjustments, if applicable, to the
Mortgage Rate were being made in accordance with the Mortgage Note) and all such
proceeds shall be deemed, for all purposes in this Agreement, to be payments on
account of principal and interest on the related Mortgage Notes and shall be
deposited into the Certificate Account. To the extent the proceeds received
during any calendar month exceed the amount attributable to amortizing principal
and accrued interest at the related Mortgage Rate on the related Mortgage Loan
for the calendar month, the excess shall be considered to be a partial
prepayment of principal of the related Mortgage Loan.

         The proceeds from any liquidation of a Mortgage Loan, as well as any
proceeds from an REO Property, will be applied in the following order of
priority:

                  FIRST, to reimburse the Master Servicer for any related
         unreimbursed Servicing Advances or Master Servicing Fees or for any
         unreimbursed Advances, as applicable;

                  SECOND, to reimburse the Certificate Account for any
         Nonrecoverable Advances (or portions thereof) that were previously
         withdrawn by the Master Servicer pursuant to Section 3.09(a)(ii) that
         related to the Mortgage Loan;

                  THIRD, to accrued and unpaid interest (to the extent no
         Advance has been made for such amount or an Advance has been
         reimbursed) on the Mortgage Loan or related REO Property, at the
         Adjusted Net Mortgage Rate through the Remittance Period preceding the
         Distribution Date on which the amounts are required to be distributed;
         and

                  FOURTH, as a recovery of principal of the Mortgage Loan. The
         Master Servicer will retain any Excess Proceeds from the liquidation of
         a Liquidated Mortgage Loan as additional servicing compensation
         pursuant to Section 3.15.

         (b) [RESERVED]

         (c) The Master Servicer may agree to a modification of any Mortgage
Loan at the request of the related Mortgagor if (i) the modification is in lieu
of a refinancing and the Mortgage Rate on the relevant Mortgage Loan, as
modified, is approximately a prevailing market rate for newly-originated
mortgage loans having similar terms and (ii) the Master Servicer purchases the
relevant Mortgage Loan from the Trust Fund as described below. Upon the
agreement of the Master Servicer to modify a Mortgage Loan in accordance with
the preceding sentence, the Master Servicer shall purchase that Mortgage Loan
and all interest of the Trustee in that Mortgage Loan shall automatically be
deemed transferred and assigned to the Master Servicer and all benefits and
burdens of ownership thereof, including the right to accrued interest thereon
from the date of purchase and the risk of default thereon, shall pass to the
Master Servicer. The Master Servicer shall promptly deliver to the Trustee a
certification of a Servicing Officer to the effect that all requirements of the
first paragraph of this subsection (c) have been satisfied with respect to the
Mortgage Loan to be repurchased pursuant to this paragraph.

         The Master Servicer shall deposit the Purchase Price for any Mortgage
Loan repurchased pursuant to this Section 3.12 in the Certificate Account
pursuant to Section 3.06 within one (1) Business Day after the purchase of the
Mortgage Loan. Upon receipt by the Trustee of written notification of any such
deposit signed by a Servicing Officer, the Trustee shall release to the Master
Servicer the related Mortgage File and shall execute and deliver such
instruments of transfer or assignment, in each case without recourse, as shall
be necessary to vest in the Master Servicer any Mortgage Loan previously
transferred and assigned pursuant hereto.

         The Master Servicer covenants and agrees to indemnify the Trust Fund
against any liability for any taxes (including prohibited transaction taxes) and
any related interest, additions, and penalties imposed on the Trust Fund
established hereunder as a result of any modification of a Mortgage Loan
effected pursuant to this Section 3.12 or any purchase of a Mortgage Loan by the
Master Servicer in connection with a modification (but such obligation shall not
prevent the Master Servicer or any other appropriate Person from contesting any
such tax in appropriate proceedings and shall not prevent the Master Servicer
from withholding payment of such tax, if permitted by law, pending the outcome
of such proceedings). The Master Servicer shall have no right of reimbursement
for any amount paid pursuant to the foregoing indemnification, except to the
extent that the amount of any tax, interest, and penalties, together with
interest thereon, is refunded to the Trust Fund or the Master Servicer.

         Section 3.13  TRUSTEE TO COOPERATE; RELEASE OF MORTGAGE FILES.

         Upon the payment in full of any Mortgage Loan, or the receipt by the
Master Servicer of a notification that payment in full will be escrowed in a
manner customary for such purposes, the Master Servicer will immediately notify
the Trustee by delivering a "Request for Release" substantially in the form of
Exhibit N. Upon receipt of the request, the Trustee shall promptly release the
related Mortgage File to the Master Servicer, and the Trustee shall at the
Master Servicer's direction execute and deliver to the Master Servicer the
request for reconveyance, deed of reconveyance, or release or satisfaction of
mortgage or such instrument releasing the lien of the Mortgage in each case
provided by the Master Servicer, together with the Mortgage Note with written
evidence of cancellation thereon. Expenses incurred in connection with any
instrument of satisfaction or deed of reconveyance shall be chargeable to the
related Mortgagor.

         From time to time and as shall be appropriate for the servicing or
foreclosure of any Mortgage Loan, including for such purpose collection under
any policy of flood insurance, any fidelity bond or errors or omissions policy,
or for the purposes of effecting a partial release of any Mortgaged Property
from the lien of the Mortgage or the making of any corrections to the Mortgage
Note or the Mortgage or any of the other documents included in the Mortgage
File, the Trustee shall, upon delivery to the Trustee of a Request for Release
in the form of Exhibit M signed by a Servicing Officer, release the Mortgage
File to the Master Servicer or its designee. Subject to the further limitations
stated below, the Master Servicer shall cause the Mortgage File or documents so
released to be returned to the Trustee when the need therefor by the Master
Servicer no longer exists, unless the Mortgage Loan is liquidated and the
proceeds thereof are deposited in the Certificate Account, in which case the
Master Servicer shall deliver to the Trustee a Request for Release in the form
of Exhibit N, signed by a Servicing Officer.

         If the Master Servicer at any time seeks to initiate a foreclosure
proceeding in respect of any Mortgaged Property as authorized by this Agreement,
the Master Servicer shall deliver to the Trustee, for signature, as appropriate,
any court pleadings, requests for trustee's sale, or other documents necessary
to effectuate such foreclosure or any legal action brought to obtain judgment
against the Mortgagor on the Mortgage Note or the Mortgage or to obtain a
deficiency judgment or to enforce any other remedies or rights provided by the
Mortgage Note or the Mortgage or otherwise available at law or in equity.

         Section 3.14  DOCUMENTS, RECORDS, AND FUNDS IN POSSESSION OF THE MASTER
                       SERVICER TO BE HELD FOR THE TRUSTEE.

         The Master Servicer shall account fully to the Trustee and the NIM
Insurer for any funds it receives or otherwise collects as Liquidation Proceeds
or Insurance Proceeds in respect of any Mortgage Loan. All Mortgage Files and
funds collected or held by, or under the control of, the Master Servicer in
respect of any Mortgage Loans, whether from the collection of principal and
interest payments or from Liquidation Proceeds, including any funds on deposit
in the Certificate Account, shall be held by the Master Servicer for and on
behalf of the Trustee and shall be and remain the sole and exclusive property of
the Trustee, subject to the applicable provisions of this Agreement. The Master
Servicer also agrees that it shall not create, incur or subject any Mortgage
File or any funds that are deposited in the Certificate Account, the Collection
Account, the Distribution Account or any Escrow Account, or any funds that
otherwise are or may become due or payable to the Trustee for the benefit of the
Certificateholders, to any claim, lien, security interest, judgment, levy, writ
of attachment, or other encumbrance, or assert by legal action or otherwise any
claim or right of setoff against any Mortgage File or any funds collected on, or
in connection with, a Mortgage Loan, except, however, that the Master Servicer
shall be entitled to set off against and deduct from any such funds any amounts
that are properly due and payable to the Master Servicer under this Agreement.

         Section 3.15  SERVICING COMPENSATION.

         As compensation for its activities hereunder, the Master Servicer may
retain or withdraw from the Servicing Account, the Collection Account or the
Certificate Account the Master Servicing Fee for each Mortgage Loan for the
related Distribution Date. Notwithstanding the foregoing, the aggregate Master
Servicing Fee payable to the Master Servicer shall be reduced by the LESSER OF
the aggregate of the Prepayment Interest Shortfalls with respect to the
Distribution Date AND the aggregate Compensating Interest for the Distribution
Date.

         Additional master servicing compensation in the form of Prepayment
Interest Excess, Excess Proceeds, assumption fees, late payment charges and all
income and gain net of any losses realized from Permitted Investments shall be
retained by the Master Servicer to the extent not required to be deposited in
the Certificate Account pursuant to Section 3.06. The Master Servicer shall be
required to pay all expenses incurred by it in connection with its servicing
activities hereunder (including the fees of any Subservicer, payment of any
premiums for hazard insurance, and any Primary Insurance Policy and maintenance
of the other forms of insurance coverage required by this Agreement) and shall
not be entitled to reimbursement therefor except as specifically provided in
this Agreement.

         Section 3.16  ACCESS TO CERTAIN DOCUMENTATION.

         The Master Servicer shall provide to the OTS and the FDIC and to
comparable regulatory authorities supervising the Certificateholders and
Certificate Owners and the examiners and supervisory agents of the OTS, the FDIC
and such other authorities, access to the documentation regarding the Mortgage
Loans required by applicable regulations of the OTS and the FDIC. Access shall
be afforded without charge, but only upon reasonable prior written request and
during normal business hours at the offices designated by the Master Servicer.
Nothing in this Section 3.16 shall limit the obligation of the Master Servicer
to observe any applicable law prohibiting disclosure of information regarding
the Mortgagors and the failure of the Master Servicer to provide access as
provided in this Section 3.16 as a result of such obligation shall not
constitute a breach of this Section 3.16.

         Section 3.17  ANNUAL STATEMENT AS TO COMPLIANCE.

         By March 1st of each year, commencing with 2006, the Master Servicer
shall deliver to the Depositor and the Trustee an Officer's Certificate signed
by two servicing officers stating, as to the signer thereof, that (i) a review
of the activities of the Master Servicer during the preceding calendar year and
of the performance of the Master Servicer under this Agreement has been made
under the officer's supervision, and (ii) to the best of the officer's
knowledge, based on the review, the Master Servicer has fulfilled all its
obligations under this Agreement throughout the year, or, if there has been a
default in the fulfillment of any obligation, specifying each default known to
the officer and its nature and status. The Trustee shall forward a copy of each
compliance statement to each Rating Agency.

         Section 3.18  ANNUAL INDEPENDENT PUBLIC ACCOUNTANTS' SERVICING
                       STATEMENT; FINANCIAL STATEMENTS.

         By March 1st of each year, commencing with 2006, the Master Servicer at
its expense shall cause a nationally or regionally recognized firm of
independent public accountants (who may also render other services to the Master
Servicer, the Seller or any affiliate thereof) that is a member of the American
Institute of Certified Public Accountants to furnish a statement to the Trustee
and the Depositor to the effect that the firm has examined certain documents and
records relating to the servicing of the Mortgage Loans under this Agreement or
of mortgage loans under pooling and servicing agreements substantially similar
to this Agreement (the statement to have attached to it a schedule of the
pooling and servicing agreements covered by it) and that, on the basis of its
examination, conducted substantially in compliance with the Audit Guide for
Audits of HUD Approved Nonsupervised Mortgagees, the Uniform Single Attestation
Program for Mortgage Bankers, or the Audit Program for Mortgages serviced for
FNMA and FHLMC, such servicing has been conducted in compliance with such
pooling and servicing agreements except for any significant exceptions or errors
in records that, in the opinion of the firm, the Audit Guide for Audits of HUD
Approved Nonsupervised Mortgagees, the Uniform Single Attestation Program for
Mortgage Bankers, or the Audit Program for Mortgages serviced for FNMA and FHLMC
requires it to report. In rendering the statement, the firm may rely, as to
matters relating to direct servicing of mortgage loans by the subservicers, upon
comparable statements for examinations conducted substantially in compliance
with the Audit Guide for Audits of HUD Approved Nonsupervised Mortgagees, the
Uniform Single Attestation Program for Mortgage Bankers, or the Audit Program
for Mortgages serviced for FNMA and FHLMC (rendered within one year of the
statement) of independent public accountants with respect to the related
Subservicer. The Master Servicer shall deliver the statement to the Trustee so
that the Trustee can provide copies of the statement to any Certificateholder or
Certificate Owner on request at the Master Servicer's expense.

         Section 3.19  ERRORS AND OMISSIONS INSURANCE; FIDELITY BONDS.

         The Master Servicer shall obtain and maintain in force (a) policies of
insurance covering errors and omissions in the performance of its obligations as
Master Servicer hereunder and (b) a fidelity bond covering its officers,
employees, and agents. Each policy and bond shall, together, comply with the
requirements from time to time of FNMA or FHLMC for persons performing servicing
for mortgage loans purchased by FNMA or FHLMC. The Master Servicer shall provide
the Trustee and the NIM Insurer, upon request, with a certificate of insurance
relating to the insurance policies and fidelity bond. If any policy or bond
ceases to be in effect, the Master Servicer shall obtain a comparable
replacement policy or bond from an insurer or issuer meeting the above
requirements as of the date of the replacement. The Master Servicer shall also
cause each Subservicer to maintain a policy of insurance covering errors and
omissions and fidelity bond that meets these requirements.

         Section 3.20  NOTIFICATION OF ADJUSTMENTS.

         On each Adjustment Date, the Master Servicer shall make interest rate
adjustments for each adjustable-rate Mortgage Loan in compliance with the
requirements of the related Mortgage and Mortgage Note and applicable
regulations. The Master Servicer shall execute and deliver the notices required
by each Mortgage and Mortgage Note and applicable regulations regarding such
interest rate adjustments. The Master Servicer also shall provide timely
notification to the Trustee of all applicable data and information regarding
such interest rate adjustments and the Master Servicer's methods of implementing
such interest rate adjustments. Upon the discovery by the Master Servicer or the
Trustee that the Master Servicer has failed to adjust or has incorrectly
adjusted a Mortgage Rate or a monthly payment pursuant to the terms of the
related Mortgage Note and Mortgage, the Master Servicer shall immediately
deposit in the Certificate Account from its own funds the amount of any loss
caused thereby without reimbursement therefor; provided, however, that the
Master Servicer shall not be liable with respect to any interest rate
adjustments made by any servicer prior to the Master Servicer.

         Section 3.21  PREPAYMENT CHARGES.

         (a) The Master Servicer shall not waive any part of any Prepayment
Charge unless the waiver relates to a default or a reasonably foreseeable
default, the collection of any Prepayment Charge would violate any relevant law
or regulation or the waiving of the Prepayment Charge would otherwise benefit
the Trust Fund and it is expected that the waiver would maximize recovery of
total proceeds taking into account the value of the Prepayment Charge and
related Mortgage Loan and doing so is standard and customary in servicing
similar Mortgage Loans (including any waiver of a Prepayment Charge in
connection with a refinancing of a Mortgage Loan that is related to a default or
a reasonably foreseeable default). The Master Servicer shall not waive a
Prepayment Charge in connection with a refinancing of a Mortgage Loan that is
not related to a default or a reasonably foreseeable default.

         (b) The Seller represents and warrants to the Depositor and the
Trustee, as of the Closing Date, that the information in the Prepayment Charge
Schedule (including the attached prepayment charge summary) is complete and
accurate in all material respects at the dates as of which the information is
furnished and each Prepayment Charge is permissible and enforceable in
accordance with its terms under applicable state law.

         (c) Upon discovery by the Seller or a Responsible Officer of the
Trustee of a breach of the foregoing clause (b) that materially and adversely
affects right of the Holders of the Class P Certificate to any Prepayment
Charge, the party discovering the breach shall give prompt written notice to the
other parties. If the NIM Insurer discovers a breach of the foregoing, it may
give written notice of the breach to the Master Servicer, the Seller, and the
Trustee. Within sixty (60) days of the earlier of discovery by the Master
Servicer or receipt of notice by the Master Servicer of breach, the Master
Servicer shall cure the breach in all material respects or shall pay into the
Collection Account the amount of the scheduled Prepayment Charge, less any
amount previously collected and paid by the Master Servicer into the Collection
Account. If the covenant made by the Master Servicer in clause (a) above is
breached, the Master Servicer must pay into the Collection Account the amount of
the waived Prepayment Charge.

         Section 3.22 PRE-FUNDING ACCOUNTS.

                  (a) No later than the Closing Date, the Trustee shall
establish and maintain two segregated trust accounts that are each Eligible
Accounts, which shall be titled (i) "Group I Pre-Funding Account, Deutsche Bank
National Trust Company, as Trustee for the registered holders of Home Equity
Mortgage Loan Asset-Backed Certificates, Series INABS 2005-B" (the "GROUP I
PRE-FUNDING ACCOUNT") and (ii) "Group II Pre-Funding Account, Deutsche Bank
National Trust Company, as Trustee for the registered holders of Home Equity
Mortgage Loan Asset-Backed Certificates, Series INABS 2005-B" (the "GROUP II
PRE-FUNDING ACCOUNT"). The Trustee shall, promptly upon receipt, deposit in the
applicable Pre-Funding Account and retain therein the Original Group I
Pre-Funded Amount or the Original Group II Pre-Funded Amount, as applicable,
remitted on the Closing Date to the Trustee by the Depositor. Funds deposited in
the Pre-Funding Accounts shall be held in trust by the Trustee for the
Certificateholders for the uses and purposes set forth herein.

                  (b) The Trustee shall invest funds deposited in the
Pre-Funding Accounts in Permitted Investments of the kind described in clauses
(i), (iii) or (ix) of the definition of Permitted Investments, as specified in a
written direction from the Master Servicer, with a maturity date no later than
the second Business Day preceding each Distribution Date. For federal income tax
purposes, the holder of the largest Percentage Interest of the Residual
Certificates shall be the owner of the Pre-Funding Accounts and shall report all
items of income, deduction, gain or loss arising therefrom. The Master Servicer
shall deposit in the applicable Pre-Funding Account the amount of any net loss
incurred in respect of any such Permitted Investment immediately upon
realization of such loss without any right of reimbursement therefor. The
Pre-Funding Accounts shall not be assets of any Trust REMIC.

                  (c) Amounts on deposit in the Pre-Funding Accounts shall be
withdrawn by the Trustee as follows:

                  (i) on any Subsequent Transfer Date, the Trustee shall
         withdraw from the related Pre-Funding Account an amount equal to 100%
         of the Stated Principal Balances of the Subsequent Mortgage Loans
         transferred and assigned to the Trustee for deposit in the pool of
         Mortgage Loans on such Subsequent Transfer Date and pay such amount to
         or upon the order of the Depositor upon satisfaction of the conditions
         set forth in Section 2.07 with respect to such transfer and assignment;

                  (ii) if the amount on deposit in the related Pre-Funding
         Account has not been reduced to zero during the Funding Period, on the
         day of the termination of the Funding Period, the Trustee shall deposit
         into the Distribution Account any amounts remaining in the Pre-Funding
         Account to be held uninvested;

                  (iii) to distribute to the applicable Interest Coverage
         Account any income and gain realized from the investment of funds in
         the related Pre-Funding Account;

                  (iv) to withdraw any amount not required to be deposited in
         the Pre-Funding Accounts or deposited therein in error; and

                  (v) to clear and terminate the Pre-Funding Accounts upon the
         earlier to occur of (A) the day immediately following the end of the
         Funding Period and (B) the termination of this Agreement, with any
         amounts remaining on deposit therein being paid to the
         Certificateholders then entitled to distributions in respect of
         principal.

         Section 3.23  INTEREST COVERAGE ACCOUNTS.

         (i) If amounts are required to be deposited in the Interest Coverage
Accounts, no later than the Closing Date, the Trustee shall establish and
maintain a segregated non-interest bearing trust account that is an Eligible
Account, which shall be titled (i) "Group I Interest Coverage Account, Deutsche
Bank National Trust Company, as trustee for the registered holders of Home
Equity Mortgage Loan Asset-Backed Trust, Series INABS 2005-B" (the "Group I
Interest Coverage Account") and (ii) "Group II Interest Coverage Account,
Deutsche Bank National Trust Company, as trustee for the registered holders of
Home Equity Mortgage Loan Asset-Backed Trust, Series INABS 2005-B" (the "Group
II Interest Coverage Account"). The Trustee shall, promptly upon receipt,
deposit in each Interest Coverage Account and retain therein the related
Interest Coverage Amount, remitted on the Closing Date to the Trustee by the
Depositor. Funds deposited in the Interest Coverage Accounts shall be held in
trust by the Trustee for the Certificateholders for the uses and purposes set
forth herein .

         (ii) The Trustee shall invest funds deposited in the Interest Coverage
Accounts in Permitted Investments of the kind described in clauses (i), (v) or
(vi) of the definition of Permitted Investments, as specified in a written
direction from the Depositor, with a maturity date no later than the second
Business Day preceding each Distribution Date. For federal income tax purposes,
the holder of the largest Percentage Interest of the Residual Certificates shall
be the owner of the Interest Coverage Accounts and shall report all items of
income, deduction, gain or loss arising therefrom. At no time shall either
Interest Coverage Account be an asset of any Trust REMIC. All income and gain
realized from investment of funds deposited in the Interest Coverage Accounts
shall be for the sole and exclusive benefit of the Depositor and shall be
remitted by the Trustee to the Depositor on the first Business Day following
each Distribution Date. The Depositor shall deposit in the Interest Coverage
Accounts the amount of any net loss incurred in respect of any such Permitted
Investment immediately upon realization of such loss.

         (iii) On each Distribution Date during the Funding Period and on the
last day of the Funding Period, the Trustee shall withdraw from the related
Interest Coverage Account and deposit in the Distribution Account an amount
equal to 30 days' interest on the excess, if any, of the related Original
Pre-Funded Amount, over the aggregate Stated Principal Balance of related
Subsequent Mortgage Loans that both (i) had a Due Date during the Due Period
relating to such Distribution Date and (ii) had a Subsequent Cut-off Date prior
to the first day of the month in which such Distribution Date occurs, at a per
annum rate equal to the weighted average Pass-Through Rate of the related
Offered Certificates for such Distribution Date, with the Pass-Through Rate on
the related Offered Certificates, solely for the purposes of the foregoing
calculation, multiplied by a fraction, the numerator of which is the actual
number of days in the Accrual Period for such Class for such Distribution Date,
and the denominator of which is 30. Such withdrawal and deposit shall be treated
as a contribution of cash by the Servicer to REMIC I. Immediately following any
such withdrawal and deposit, and immediately following the conveyance of any
Subsequent Mortgage Loans to the Trust on any Subsequent Transfer Date, the
Trustee shall withdraw from the related Interest Coverage Account and remit to
the Depositor or its designee an amount equal to the excess, if any, of the
amount remaining in such Interest Coverage Account over the amount that would be
required to be withdrawn therefrom (assuming sufficient funds therein) pursuant
to the second preceding sentence on each subsequent Distribution Date, if any,
that shall occur during the Funding Period or that shall be the last day of the
Funding Period, if no Subsequent Mortgage Loans were acquired by the Trust Fund
after the end of the Prepayment Period relating to the current Distribution Date
(assuming that LIBOR remains constant at the level of LIBOR applicable to the
calculation of the Pass-Through Rate for the Class A Certificates and Mezzanine
Certificates for the current Distribution Date).

Upon the earlier of (i) the Distribution Date immediately following the end of
the Funding Period, (ii) the reduction of the aggregate Certificate Principal
Balance of the Class A Certificates and the Mezzanine Certificates to zero or
(iii) the termination of this Agreement in accordance with Section 9.01, any
amount remaining on deposit in the Interest Coverage Accounts after
distributions pursuant to paragraph (c) above shall be withdrawn by the Trustee
and paid to the Depositor or its designee.

<PAGE>

                                   ARTICLE IV

                DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER

         Section 4.01  ADVANCES.

         (a) The Master Servicer shall determine by each Master Servicer Advance
Date whether it is required to make an Advance pursuant to the definition of
Advance. If the Master Servicer determines it is required to make an Advance, it
shall, by the Master Servicer Advance Date, either (i) deposit into the
Certificate Account the Advance or (ii) make an appropriate entry in its records
relating to the Certificate Account that any Amount Held for Future Distribution
has been used by the Master Servicer in discharge of its obligation to make the
Advance. The Master Servicer shall replace any funds so applied by making a
deposit in the Certificate Account no later than the close of business on the
next Master Servicer Advance Date. The Master Servicer shall be reimbursed from
the Certificate Account for all Advances of its own funds made pursuant to this
Section 4.01, as provided in Section 3.09. The obligation to make Advances with
respect to any Mortgage Loan shall continue if the Mortgage Loan has been
foreclosed or otherwise terminated and the related Mortgaged Property has not
been liquidated. The Master Servicer shall inform the Trustee of the amount of
the Advance to be made on each Master Servicer Advance Date no later than the
second Business Day before the related Distribution Date.

         (b) If the Master Servicer determines that it will be unable to comply
with its obligation to make the Advances as and when described in the second
sentence of Section 4.01(a), it shall use its best efforts to give written
notice thereof to the Trustee (each such notice, an "ADVANCE NOTICE"; and such
notice may be given by telecopy), not later than 3:00 p.m., (New York time), on
the Business Day immediately preceding the related Master Servicer Advance Date,
specifying the amount that it will be unable to deposit (each such amount, an
"ADVANCE DEFICIENCY") and certifying that such Advance Deficiency constitutes
the amount of an Advance hereunder and that such Advance would not be a
Nonrecoverable Advance. If the Trustee receives an Advance Notice on or before
3:00 p.m., (New York time) on a Master Servicer Advance Date, the Trustee is
entitled to immediately terminate the Master Servicer under Section 7.01, and
shall, not later than 3:00 p.m., (New York time), on the related Distribution
Date, deposit in the Distribution Account an amount equal to the Advance
Deficiency identified in such Advance Notice unless it is prohibited from so
doing by applicable law. Notwithstanding the foregoing, the Trustee shall not be
required to make such deposit if the Trustee shall have received written
notification from the Master Servicer that the Master Servicer has deposited or
caused to be deposited in the Certificate Account an amount equal to such
Advance Deficiency by 3:00 p.m. (New York time) on the related Distribution
Date. If the Trustee has not terminated the Master Servicer, the Master Servicer
shall reimburse the Trustee for the amount of any such Advance Deficiency
(including interest at the Prime Rate published in THE WALL STREET JOURNAL on
the day of such reimbursement on such amount), made by the Trustee pursuant to
this Section 4.01(b), not later than the second day following the related Master
Servicer Advance Date. In the event that the Master Servicer does not reimburse
the Trustee in accordance with the requirements of the preceding sentence, the
Trustee shall immediately (a) terminate all of the rights and obligations of the
Master Servicer under this Agreement in accordance with Section 7.01 and (b)
subject to the limitations set forth in Section 3.05, assume all of the rights
and obligations of the Master Servicer hereunder.

         (c) The Master Servicer shall, not later than the close of business on
the Business Day immediately preceding each Master Servicer Advance Date,
deliver to the Trustee a report (in form and substance reasonably satisfactory
to the Trustee) that indicates (i) the Mortgage Loans with respect to which the
Master Servicer has determined that the related Scheduled Payments should be
advanced and (ii) the amount of the related Scheduled Payments. The Master
Servicer shall deliver to the Trustee on the related Master Servicer Advance
Date an Officer's Certificate of a Servicing Officer indicating the amount of
any proposed Advance determined by the Master Servicer to be a Nonrecoverable
Advance.

         Section 4.02  PRIORITIES OF DISTRIBUTION.

         (I) On each Distribution Date, the Trustee will make the disbursements
and transfers from amounts then on deposit in the Distribution Account in the
following order of priority for each Certificate Group and, in each case, to the
extent of the remaining Available Funds:

         (a) Interest Distributions.

                  (i) From the Group I Interest Remittance Amount,

                           (A) to the Class A-I-1 Certificates the related
                  Accrued Certificate Interest Distribution Amount and any
                  related Unpaid Interest Amounts for such Class on that
                  Distribution Date; and

                           (B) concurrently, to the Class A-II-1, Class A-II-2
                  and Class A-II-3 Certificates, PRO RATA, the related Accrued
                  Certificate Interest Distribution Amount or Unpaid Interest
                  Amounts remaining undistributed for such Classes on that
                  Distribution Date after the distributions in clause (ii)
                  below;

                  (ii) From the Group II Interest Remittance Amount:

                           (A) concurrently, to the Class A-II-1, Class A-II-2
                  and Class A-II-3 Certificates, PRO RATA, the related Accrued
                  Certificate Interest Distribution Amount and any related
                  Unpaid Interest Amounts for such Classes on that Distribution
                  Date; and

                           (B) to the Class A-I-1 Certificates the related
                  Accrued Certificate Interest Distribution Amount or Unpaid
                  Interest Amounts remaining undistributed for such Class on
                  that Distribution Date after distributions pursuant to clause
                  (i) above; and

                  (iii) From the remaining Group I Interest Remittance Amount
         and Group II Interest Remittance Amount:

                           (A) to the Class M-1 Certificates, the Accrued
                  Certificate Interest Distribution Amount for the Class on the
                  Distribution Date;

                           (B) to the Class M-2 Certificates, the Accrued
                  Certificate Interest Distribution Amount for the Class on the
                  Distribution Date;

                           (C) to the Class M-3 Certificates, the Accrued
                  Certificate Interest Distribution Amount for the Class on the
                  Distribution Date;

                           (D) to the Class M-4 Certificates, the Accrued
                  Certificate Interest Distribution Amount for the Class on the
                  Distribution Date;

                           (E) to the Class M-5 Certificates, the Accrued
                  Certificate Interest Distribution Amount for the Class on the
                  Distribution Date;

                           (F) to the Class M-6 Certificates, the Accrued
                  Certificate Interest Distribution Amount for the Class on the
                  Distribution Date;

                           (G) to the Class M-7 Certificates, the Accrued
                  Certificate Interest Distribution Amount for the Class on the
                  Distribution Date;

                           (H) to the Class M-8 Certificates, the Accrued
                  Certificate Interest Distribution Amount for the Class on the
                  Distribution Date;

                           (I) to the Class M-9 Certificates, the Accrued
                  Certificate Interest Distribution Amount for the Class on the
                  Distribution Date;

                           (J) to the Class M-10 Certificates, the Accrued
                  Certificate Interest Distribution Amount for the Class on the
                  Distribution Date; and

                           (K) to the Class M-11 Certificates, the Accrued
                  Certificate Interest Distribution Amount for the Class on the
                  Distribution Date.

         (b) Principal Distributions

                  (i) with respect to each Distribution Date (x) before the
         Stepdown Date or (y) if a Trigger Event is in effect, to the holders of
         the Classes of Class A and Subordinated Certificates then entitled to
         distributions of principal as set forth below, the applicable Principal
         Distribution Amount from each Loan Group in the following amounts and
         order of priority:

                           (A) (x) in the case of the Group I Certificates, the
                  Group I Principal Distribution Amount, to the Class A-I-1
                  Certificates, until the Class Certificate Balance thereof has
                  been reduced to zero; and

                           (y) from any remaining Group I Principal Distribution
                  Amount, sequentially, to the Class A-II-1, Class A-II-2 and
                  Class A-II-3 Certificates (after the distribution of the Group
                  II Principal Distribution Amount as provided in clause
                  (b)(i)(B)(x) below), in that order, until their respective
                  Class Certificate Balances have been reduced to zero;
                  provided, however, that with respect to distributions on any
                  Distribution Date pursuant to this clause (b)(i)(A)(y) on
                  which the aggregate Class Certificate Balance of the
                  Subordinated Certificates has been reduced to zero and the
                  Overcollateralization Amount for such Distribution Date is
                  equal to or less than zero, any remaining Group I Principal
                  Distribution Amount for that Distribution Date to be
                  distributed to the Group II Certificates will be distributed,
                  concurrently, to the Class A-II-1, Class A-II-2 and Class
                  A-II-3 Certificates, PRO RATA (rather than sequentially),
                  based on their respective Class Certificate Balances;

                           (B) (x) in the case of the Group II Certificates, the
                  Group II Principal Distribution Amount, sequentially, to the
                  Class A-II-1, Class A-II-2 and Class A-II-3 Certificates, in
                  that order, until their respective Class Certificate Balances
                  have been reduced to zero; provided, however, that with
                  respect to distributions on any Distribution Date pursuant to
                  this clause (b)(i)(B)(x) on which the aggregate Class
                  Certificate Balance of the Subordinated Certificates has been
                  reduced to zero and the Overcollateralization Amount for such
                  Distribution Date is equal to or less than zero, the Group II
                  Principal Distribution Amount for that Distribution Date to be
                  distributed to the Group II Certificates will be distributed,
                  concurrently, to the Class A-II-1, Class A-II-2 and Class
                  A-II-3 Certificates, PRO RATA (rather than sequentially),
                  based on their respective Class Certificate Balances; and

                           (y) from any remaining Group II Principal
                  Distribution Amount, to the Class A-I-1Certificates, until the
                  Class Certificate Balance thereof has been reduced to zero;

                           (C) from any remaining Group I and Group II Principal
                  Distribution Amounts, sequentially to the Class M-1, Class
                  M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7,
                  Class M-8, Class M-9, Class M-10 and Class M-11 Certificates,
                  in that order, until their respective Class Certificate
                  Balances are reduced to zero;

                  (ii) with respect to each Distribution Date (x) on and after
         the Stepdown Date and (y) as long as a Trigger Event is not in effect,
         to the holders of the Classes of Class A and Subordinated Certificates
         then entitled to distributions of principal, an amount equal to the
         applicable Principal Distribution Amount from each Loan Group in the
         following amounts and order of priority:

                           (A) (x) the LESSER OF (1) the Group I Principal
                  Distribution Amount AND (2) the Group I Senior Principal
                  Distribution Amount, to the Class A-I-1 Certificates, until
                  the Class Certificate Balance thereof has been reduced to
                  zero; and

                           (y) the LESSER OF (1) any remaining Group I Principal
                  Distribution Amount AND (2) the Group II Senior Principal
                  Distribution Amount that remains undistributed, sequentially,
                  to the Class A-II-1, Class A-II-2 and Class A-II-3
                  Certificates (after the distribution of the Group II Principal
                  Distribution Amount as provided in clause (b)(ii)(B)(x)
                  below), in that order, until their respective Class
                  Certificate Balances have been reduced to zero; provided,
                  however, that with respect to distributions on any
                  Distribution Date pursuant to this clause (b)(ii)(A)(y) on
                  which the aggregate Class Certificate Balance of the
                  Subordinated Certificates has been reduced to zero and the
                  Overcollateralization Amount for such distribution date is
                  equal to or less than zero, any remaining Group I Principal
                  Distribution Amount for that Distribution Date to be
                  distributed to the Group II Certificates will be distributed
                  concurrently to the Class A-II-1, Class A-II-2 and Class
                  A-II-3 Certificates, PRO RATA (rather than sequentially),
                  based on their respective Class Certificate Balances; and

                           (B) (x) THE LESSER OF (1) the Group II Principal
                  Distribution Amount AND (2) the Group II Senior Principal
                  Distribution Amount, sequentially, to the Class A-II-1, Class
                  A-II-2 and Class A-II-3 Certificates, in that order, until
                  their respective Class Certificate Balances have been reduced
                  to zero; provided, however, that with respect to distributions
                  on any Distribution Date pursuant to this clause (b)(ii)(B)(x)
                  on which the aggregate Class Certificate Balance of the
                  Subordinated Certificates has been reduced to zero and the
                  Overcollateralization Amount for such Distribution Date is
                  equal to or less than zero, the Group II Principal
                  Distribution Amount for that Distribution Date to be
                  distributed to the Group II Certificates will be distributed
                  concurrently to the Class A-II-1, Class A-II-2 and Class
                  A-II-3 Certificates, PRO RATA (rather than sequentially),
                  based on their respective Class Certificate Balances;

                           (y) the LESSER OF (A) any remaining Group II
                  Principal Distribution Amount AND (B) the Group I Senior
                  Principal Distribution Amount that remains undistributed, to
                  the Class A-I-1 Certificates (after the distribution of the
                  Group I Principal Distribution Amount, as provided in clause
                  (b)(ii)(A)(x) above), until the Class Certificate Balance
                  thereof has been reduced to zero; and then

                           (C) the remaining Principal Distribution Amount from
                  each Loan Group as follows:

                                    (1) the Class M-1 Principal Distribution
                           Amount to the Class M-1 Certificates, until their
                           Class Certificate Balance has been reduced to zero;

                                    (2) the Class M-2 Principal Distribution
                           Amount to the Class M-2 Certificates, until their
                           Class Certificate Balance has been reduced to zero;

                                    (3) the Class M-3 Principal Distribution
                           Amount to the Class M-3 Certificates, until their
                           Class Certificate Balance has been reduced to zero;

                                    (4) the Class M-4 Principal Distribution
                           Amount to the Class M-4 Certificates, until their
                           Class Certificate Balance has been reduced to zero;

                                    (5) the Class M-5 Principal Distribution
                           Amount to the Class M-5 Certificates, until their
                           Class Certificate Balance has been reduced to zero;

                                    (6) the Class M-6 Principal Distribution
                           Amount to the Class M-6 Certificates, until their
                           Class Certificate Balance has been reduced to zero;

                                    (7) the Class M-7 Principal Distribution
                           Amount to the Class M-7 Certificates, until their
                           Class Certificate Balance has been reduced to zero;

                                    (8) the Class M-8 Principal Distribution
                           Amount to the Class M-8 Certificates, until their
                           Class Certificate Balance has been reduced to zero;

                                    (9) the Class M-9 Principal Distribution
                           Amount to the Class M-9 Certificates, until their
                           Class Certificate Balance has been reduced to zero;

                                    (10) the Class M-10 Principal Distribution
                           Amount to the Class M-10 Certificates, until their
                           Class Certificate Balance has been reduced to zero;
                           and

                                    (11) the Class M-11 Principal Distribution
                           Amount to the Class M-11 Certificates, until their
                           Class Certificate Balance has been reduced to zero.

         (c) Any amount of Available Funds remaining after the distributions in
clauses (a) and (b) above shall be distributed in the following order of
priority with respect to the Certificates:

                  (i) to fund the Extra Principal Distribution Amount for the
         Distribution Date to be paid as a component of the Principal
         Distribution Amount in the same order of priority as described in
         clause (b) above;

                  (ii) to the holders of the Class M-1 Certificates, any Unpaid
         Interest Amounts for the Class;

                  (iii) to the holders of the Class M-1 Certificates, any Unpaid
         Realized Loss Amount for the Class;

                  (iv) to the holders of the Class M-2 Certificates, any Unpaid
         Interest Amounts for the Class;

                  (v) to the holders of the Class M-2 Certificates, any Unpaid
         Realized Loss Amount for the Class;

                  (vi) to the holders of the Class M-3 Certificates, any Unpaid
         Interest Amounts for the Class;

                  (vii) to the holders of the Class M-3 Certificates, any Unpaid
         Realized Loss Amount for the Class;

                  (viii) to the holders of the Class M-4 Certificates, any
         Unpaid Interest Amounts for the Class;

                  (ix) to the holders of the Class M-4 Certificates, any Unpaid
         Realized Loss Amount for the Class;

                  (x) to the holders of the Class M-5 Certificates, any Unpaid
         Interest Amounts for the Class;

                  (xi) to the holders of the Class M-5 Certificates, any Unpaid
         Realized Loss Amount for the Class;

                  (xii) to the holders of the Class M-6 Certificates, any Unpaid
         Interest Amounts for the Class;

                  (xiii) to the holders of the Class M-6 Certificates, any
         Unpaid Realized Loss Amount for the Class;

                  (xiv) to the holders of the Class M-7 Certificates, any Unpaid
         Interest Amounts for the Class;

                  (xv) to the holders of the Class M-7 Certificates, any Unpaid
         Realized Loss Amount for the Class;

                  (xvi) to the holders of the Class M-8 Certificates, any Unpaid
         Interest Amounts for the Class;

                  (xvii) to the holders of the Class M-8 Certificates, any
         Unpaid Realized Loss Amount for the Class;

                  (xviii) to the holders of the Class M-9 Certificates, any
         Unpaid Interest Amounts for the Class;

                  (xix) to the holders of the Class M-9 Certificates, any Unpaid
         Realized Loss Amount for the Class;

                  (xx) to the holders of the Class M-10 Certificates, any Unpaid
         Interest Amounts for the Class;

                  (xxi) to the holders of the Class M-10 Certificates, any
         Unpaid Realized Loss Amount for the Class;

                  (xxii) to the holders of the Class M-11 Certificates, any
         Unpaid Interest Amounts for the Class;

                  (xxiii) to the holders of the Class M-11 Certificates, any
         Unpaid Realized Loss Amount for the Class;

                  (xxiv) to the Excess Reserve Fund Account, the amount of any
         Net WAC Cap Payment for such Distribution Date;

                  (xxv) from funds on deposit in the Excess Reserve Fund
         Account, to the Certificateholders an amount equal to any Net WAC Cap
         Carryforward Amount for such Distribution Date in the order and
         priority specified in Section 4.02(IV);

                  (xxvi) to the holders of the Class C Certificate, the Class C
         Distributable Amount; and

                  (xxvii) to the holders of the Class R Certificates, the
         remaining amount.

         (II) On each Distribution Date, an amount equal to all Prepayment
Charges received during the related Prepayment Period will be distributed to the
holders of the Class P Certificates.

         (III) Without limiting the provisions of Section 9.02, by acceptance of
the Class R Certificates the holders of the Class R Certificates agree, and it
is the understanding of the parties hereto, for so long as the NIM Notes are
outstanding, to assign and transfer their rights to receive any amounts
otherwise distributable to the holders of the Class R Certificates (and such
rights are hereby assigned and transferred) to the holders of the Class C
Certificates, to be paid to the holders of the Class C Certificates.

         (IV) On each Distribution Date, the Trustee will make the disbursements
and transfers from amounts then on deposit in the Excess Reserve Fund Account in
the following order of priority, to the extent of funds available therefor:

         (d) From payments, if any, received under Cap Contract A as follows,
subject to the provisions set forth in subsection (h) below:

                  (i) to the Group I Certificates, based on the amount of the
         Net WAC Cap Carry Forward Amount for such Class;

                  (ii) concurrently, to the Group II Certificates, PRO RATA,
         based on the amount of Net WAC Cap Carry Forward Amount for each such
         Class to the extent not paid from payments under Cap Contract B;

                  (iii) sequentially, to the Subordinated Certificates, in order
         of their payment priority, the amount of Net WAC Cap Carry Forward
         Amount for each such Class to the extent not paid from payments under
         Cap Contract C; and

                  (iv) to the Cap Contract Counterparty, any remaining cap
         payments;

         (e) From payments, if any, received under Cap Contract B as follows,
subject to the provisions set forth in subsection (h) below:

                  (i) concurrently, to the Group II Certificates, PRO RATA,
         based on the amount of the Net WAC Cap Carry Forward Amount for each
         such Class;

                  (ii) concurrently, to the Group I Certificates, PRO RATA,
         based on the amount of Net WAC Cap Carry Forward Amount for such Class
         to the extent not paid from payments under Cap Contract A;

                  (iii) sequentially, to the Subordinated Certificates, in order
         of their payment priority, the amount of Net WAC Cap Carry Forward
         Amount for each such Class to the extent not paid from payments under
         Cap Contract C; and

                  (iv) to the Cap Contract Counterparty, any remaining cap
         payments.

         (f) From payments, if any, received under Cap Contract C as follows,
subject to the provisions set forth in subsection (h) below:

                  (i) sequentially, to the Subordinated Certificates, in order
         of their payment priority, the amount of the Net WAC Cap Carry Forward
         Amount for each such Class;

                  (ii) concurrently, to the Group I Certificates and the Group
         II Certificates, PRO RATA, based on the amount of Net WAC Cap Carry
         Forward Amount for each such Class remaining unpaid from payments under
         Cap Contract A or Cap Contract B, as applicable; and

                  (iii) to the Cap Contract Counterparty, any remaining cap
         payments;

         (g) From other amounts on deposit in the Excess Reserve Fund Account as
follows:

                  (i) concurrently, to the Class A Certificates, PRO RATA, based
         on their Class Certificate Balances to the extent of any remaining Net
         WAC Cap Carry Forward Amount for each such Class; and

                  (ii) sequentially, to the Subordinated Certificates, in order
         of their payment priority, to the extent of any remaining Net WAC Cap
         Carry Forward Amount for each such Class

         (h) Notwithstanding anything to the contrary herein, for so long as any
Certificates are held by the Seller or its Affiliates, the Trustee shall not
knowingly distribute any amounts received under Cap Contract A, Cap Contract B
or Cap Contract C in respect of any Class of Certificates held by the Seller or
any of its Affiliates, and any such amounts shall instead be distributed in
accordance with Section 4.02(IV) excluding those Certificates held by the Seller
or its Affiliates. At least six (6) Business Days prior to the related
Distribution Date, the Seller shall make available to the Trustee a statement
containing (i) the aggregate Certificate Balances of each of the Group I
Certificates, Group II Certificates and Subordinated Certificates owned by the
Seller or any of its Affiliates during the immediately preceding Interest
Accrual Period and/or as of the date of such statement to the Trustee and (ii)
the names of the Sellers and/or any of its Affiliates that own any of the Group
I Certificates, Group II Certificates or Subordinated Certificates during the
immediately preceding Interest Accrual Period and/or as of the date of such
statement to the Trustee. The Seller and its Affiliates hereby agree that (i)
the Seller and its Affiliates shall own not less than 100% of any Class of
Certificates and all transfers of Group I Certificates, Group II Certificates or
Subordinated Certificates of any Class that the Seller and/or is Affiliates may
undertake shall be restricted to 100% of such Class and (ii) neither the Seller
nor any of its Affiliates shall undertake to sell any Certificates held by such
entities or purchase any additional Certificates from the date of such statement
to the Trustee until the first day following the related Distribution Date. Any
amounts received by the Seller or any of its Affiliates under Cap Contract A,
Cap Contract B or Cap Contract C, in respect of such Certificates owned by the
Seller or any of its Affiliates, or in error or otherwise, shall be immediately
returned by the Seller to the Trustee and then distributed by the Trustee to
other entitled Certificateholders of such Class in accordance with Section
4.02(IV) and if no such other Certificateholders, to the Cap Contract
Counterparty.

         Section 4.03  MONTHLY STATEMENTS TO CERTIFICATEHOLDERS.

         (a) Not later than each Distribution Date, the Trustee shall prepare
and make available to each Certificateholder, the Master Servicer, the
Depositor, the NIM Insurer and each Rating Agency on its Internet website a
statement for the related distribution of:

                  (i) the amount of the distribution allocable to principal,
         separately identifying the aggregate amount of any Principal
         Prepayments and Liquidation Proceeds included therein;

                  (ii) the amount of the distribution allocable to interest, any
         Unpaid Interest Amounts included in the distribution and any remaining
         Unpaid Interest Amounts after giving effect to the distribution, any
         Net WAC Cap Carry Forward Amount for the Distribution Date, and the
         amount of all Net WAC Cap Carry Forward Amounts covered by withdrawals
         from the Excess Reserve Fund Account on the Distribution Date;

                  (iii) if the distribution to the Holders of any Class of
         Certificates is less than the full amount that would be distributable
         to them if sufficient funds were available, the amount of the shortfall
         and the allocation of the shortfall between principal and interest,
         including any Net WAC Cap Carry Forward Amount not covered by amounts
         in the Excess Reserve Fund Account;

                  (iv) the Class Certificate Balance of each Class of
         Certificates after giving effect to the distribution of principal on
         the Distribution Date;

                  (v) the Pool Stated Principal Balance;

                  (vi) the amount of the Master Servicing Fees paid to or
         retained by the Master Servicer or Subservicer (with respect to the
         Subservicers, in the aggregate) with respect to the Distribution Date;

                  (vii) the Pass-Through Rate for each Class of Certificates
         with respect to the Distribution Date;

                  (viii) the amount of Advances included in the distribution on
         the Distribution Date and the aggregate amount of Advances outstanding
         as of the close of business on the Distribution Date;

                  (ix) the number and aggregate outstanding balance of the
         Mortgage Loans in each Loan Group as of the end of the preceding
         calendar month:

                           (A) delinquent (exclusive of Mortgage Loans in
                  foreclosure) (1) 30 to 59 days, (2) 60 to 89 days and (3) 90
                  or more days and

                           (B) in foreclosure and delinquent (1) 30 to 59 days,
                  (2) 60 to 89 days and (3) 90 or more days,

                  as of the close of business on the last day of the calendar
                  month preceding the Distribution Date;

                  (x) for each of the preceding 12 calendar months, or all
         calendar months since the Cut-off Date, whichever is less, the
         aggregate dollar amount of the Scheduled Payments (A) due on all
         Outstanding Mortgage Loans on the Due Date in such month and (B)
         delinquent sixty (60) days or more (determined in the same manner as
         for determining Scheduled Payment delinquencies that result in a
         Mortgage Loan being a 60+ Day Delinquent Loan) on the Due Date in such
         month;

                  (xi) with respect to any Mortgage Loan that became an REO
         Property during the preceding calendar month, the loan number and
         Stated Principal Balance of the Mortgage Loan as of the close of
         business on the Determination Date preceding the Distribution Date and
         the date of acquisition thereof;

                  (xii) the total number and principal balance of any REO
         Properties (and market value, if available) as of the close of business
         on the Determination Date preceding the Distribution Date;

                  (xiii) whether a Trigger Event is in effect (including the
         calculation thereof and the aggregate outstanding balance of all 60+
         Day Delinquent Loans);

                  (xiv) the amount on deposit in the Excess Reserve Fund Account
         (after giving effect to distributions on the Distribution Date);

                  (xv) the aggregate amount of Applied Realized Loss Amounts
         incurred during the preceding calendar month and the aggregate Unpaid
         Realized Loss Amount through the Distribution Date;

                  (xvi) the aggregate amount due under the Cap Contracts and
         amounts received under the Cap Contracts;

                  (xvii) the amount of any Total Monthly Excess Spread on the
         Distribution Date and the allocation thereof to the Certificateholders
         with respect to Unpaid Realized Loss Amounts and Unpaid Interest
         Amounts;

                  (xviii) with respect to the second Distribution Date, the
         number and aggregate balance of any Delayed Delivery Mortgage Loans not
         delivered within the time periods specified in the definition of
         Delayed Delivery Mortgage Loans;

                  (xix) the Overcollateralization Amount and the
         Overcollateralization Target Amount;

                  (xx) Prepayment Charges collected, waived, and paid by the
         Master Servicer;

                  (xxi) the amount on deposit in the Pre-Funding Accounts and
         the Interest Coverage Accounts; and

                  (xxii) for the distribution occurring on the Distribution Date
         immediately following the end of the Funding Period, the balance on
         deposit in the Group I Pre-Funding Account and/or the Group II
         Pre-Funding Account that has not been used to purchase Subsequent
         Mortgage Loans and that is being distributed to the Certificateholders
         on such Distribution Date.

         For the purposes of determining delinquency periods in reporting under
(ix) above, for any monthly statement, a Mortgage Loan's delinquency period
shall be determined as of the Due Date falling in the month in which the monthly
statement is provided and a Mortgage Loan is first delinquent only after the
first Due Date following the Due Date for which any part of a Scheduled Payment
has not been paid, and each calendar month shall be treated as having 30 days.
Thus, for the July monthly statement a Mortgage Loan whose June Due Date payment
has not been paid by the July Due Date is not delinquent. On the day after the
July Due Date, such Mortgage Loan would be one day delinquent. A Mortgage Loan
whose June Due Date payment has not been paid by the July Due Date is 30 days
past due as of the July Due Date, and would be reported as such in the July
monthly statement.

         If the statement is not accessible to any of the Certificateholders,
the Master Servicer, the Depositor, the NIM Insurer, or any Rating Agency on the
Trustee's Internet website, the Trustee shall forward a hard copy of it to each
Certificateholder, the Master Servicer, the Depositor, the NIM Insurer, and each
Rating Agency immediately after the Trustee becomes aware that it is not
accessible to any of them via its website. The address of the Trustee's Internet
website where the statement will be accessible is HTTPS://WWW.TSS.COM/INVR.
Assistance in using the Trustee's Internet website may be obtained by calling
the Trustee's customer service desk at (800) 735-7777. The Trustee shall notify
each Certificateholder, the Master Servicer, the Depositor, the NIM Insurer and
each Rating Agency in writing of any change in the address or means of access to
the Internet website where the statement is accessible.

         (b) The Trustee's responsibility for disbursing the above information
to the Certificateholders is limited to the availability, timeliness, and
accuracy of the information derived from the Master Servicer. The Trustee is not
responsible for any inaccuracies in or caused by the data provided by the Master
Servicer.

         By each Determination Date, the Master Servicer shall provide to the
Trustee in electronic form the information needed to determine the distributions
to be made pursuant to Section 4.02 and 3.09(b)(ii) and any other information
that the Master Servicer and the Trustee mutually agree on.

         (c) Within a reasonable period of time after the end of each calendar
year, the Trustee shall cause to be furnished to each Person who at any time
during the calendar year was a Certificateholder, a statement containing the
information in clauses (a)(i) and (a)(ii) of this Section 4.03 aggregated for
the calendar year or the applicable portion thereof during which the Person was
a Certificateholder. Within a reasonable period of time after the end of each
calendar year, the Trustee shall cause to be furnished to the NIM Insurer, a
statement containing the information in clauses (a)(i) and (a)(ii) of this
Section 4.03 aggregated for the calendar year. This obligation of the Trustee
shall be satisfied to the extent that substantially comparable information shall
be provided by the Trustee pursuant to any requirements of the Code as from time
to time in effect.

         Section 4.04  CAP CONTRACTS

         (a) On or prior to the Closing Date, the Trustee, on behalf of the
Trust Fund, is hereby authorized to, and will enter into (i) Cap Contract A for
the benefit of the Holders of the Group I Certificates, (ii) Cap Contract B for
the benefit of the Holders of the Group II Certificates and (iii) Cap Contract C
for the benefit of the Holders of the Subordinated Certificates. The Cap
Contracts will each be an asset of the Trust Fund but not be an asset of any
REMIC.

         (b) The Trustee will prepare and deliver any notices required to be
delivered to the Cap Contract Counterparty under any of the Cap Contracts.

         (c) The Trustee shall terminate the Cap Contract Counterparty with
respect to a Cap Contract upon the occurrence of an event of default under the
applicable Cap Contract of which a Responsible Officer of the Trustee has actual
knowledge. Upon such termination, the Cap Contract Counterparty may be required
to pay an amount to the Trustee in respect of market quotations for the
replacement cost of the applicable Cap Contract. Any such amounts shall be held
in the Excess Reserve Fund Account and applied as necessary until the applicable
Cap Contract termination date.

         (d) The Trustee shall deposit any amounts received on the Cap Contracts
into the Excess Reserve Fund and distribute such amounts as provided in Section
4.02(IV)(except as set forth in (c) above).

         Section 4.05  [RESERVED]

         Section 4.06  [RESERVED]

         Section 4.07  CERTAIN MATTERS RELATING TO THE DETERMINATION OF LIBOR.

         Until all of the LIBOR Certificates are paid in full, the Trustee will
at all times retain at least four Reference Banks for the purpose of determining
LIBOR with respect to each Interest Determination Date. The Master Servicer
initially shall designate the Reference Banks. Each "REFERENCE BANK" shall be a
leading bank engaged in transactions in Eurodollar deposits in the international
Eurocurrency market, shall not control, be controlled by or be under common
control with, the Trustee and shall have an established place of business in
London. If any such Reference Bank should be unwilling or unable to act as such
or if the Master Servicer should terminate its appointment as Reference Bank,
the Master Servicer shall promptly appoint another Reference Bank. The Trustee
shall have no liability or responsibility to any Person for (i) the selection of
any Reference Bank for purposes of determining LIBOR or (ii) any inability to
retain at least four Reference Banks that is caused by circumstances beyond its
reasonable control.

         The Pass-Through Rate for each Class of LIBOR Certificates for each
Interest Accrual Period shall be determined by the Trustee on each LIBOR
Determination Date so long as the LIBOR Certificates are outstanding on the
basis of LIBOR and the respective formulae appearing in footnotes corresponding
to the LIBOR Certificates in the table relating to the Certificates in the
Preliminary Statement. The Trustee shall not have any liability or
responsibility to any Person for its inability, following a good-faith
reasonable effort, to obtain quotations from the Reference Banks or to determine
the arithmetic mean referred to in the definition of LIBOR, all as provided for
in this Section 4.07 and the definition of LIBOR. The establishment of LIBOR and
each Pass-Through Rate for the LIBOR Certificates by the Trustee shall (in the
absence of manifest error) be final, conclusive and binding upon each Holder of
a Certificate and the Trustee.

         Section 4.08  DISTRIBUTIONS AND ALLOCATION OF REALIZED LOSSES TO THE
                       REMIC I REGULAR INTERESTS AND REMIC II REGULAR INTERESTS.

         (a) On each Distribution Date, the following amounts, in the following
order of priority, shall be distributed by REMIC I to REMIC II on account of the
REMIC I Regular Interests or withdrawn from the Distribution Account and
distributed to the Holders of the Class R Certificates (in respect of the Class
R-I Interest), as the case may be:

         With respect to the Group I Mortgage Loans:

         (1)(i) to the Holders of REMIC I Regular Interest I-LT1 and REMIC I
Regular Interest I-LT1PF in an amount equal to (A) the Uncertificated Interest
for each REMIC I Regular Interest for such Distribution Date, plus (B) any
amounts in respect thereof remaining unpaid from previous Distribution Dates;
and

         (ii) to the Holders of REMIC I Regular Interest I-LTP, on the
Distribution Date immediately following the expiration of the latest Prepayment
Charge as identified on the Prepayment Charge Schedule or any Distribution Date
thereafter until $100 has been distributed pursuant to this clause;

         (2) to the Holders of REMIC I Regular Interest I-LT1 and REMIC I
Regular Interest I-LT1PF, in an amount equal to the remainder of the Available
Funds for such Distribution Date after the distributions made pursuant to clause
(1)(i) above, allocated as follows:

                  (a) to the Holders of REMIC I Regular Interest I-LT1, until
         the Uncertificated Balance of REMIC I Regular Interest I-LT1 is reduced
         to zero;

                  (b) to the Holders of REMIC I Regular Interest I-LT1PF, until
         the Uncertificated Balance of REMIC I Regular Interest I-LT1PF is
         reduced to zero; and

                  (c) any remaining amount to the Holders of the Class R
         Certificates (in respect of the Class R-I Interest);

         provided, however, that for the first and second Distribution Dates,
         such amounts relating to the Initial Group I Mortgage Loans shall be
         allocated to REMIC I Regular Interest I-LT1 and such amounts relating
         to the Subsequent Group I Mortgage Loans shall be allocated to REMIC I
         Regular Interest I-LT1PF.

         With respect to the Group II Mortgage Loans:

                  (1) to the Holders of REMIC I Regular Interest I-LT2 and REMIC
         I Regular Interest I-LT2PF in an amount equal to (A) the Uncertificated
         Interest for each REMIC I Regular Interest for such Distribution Date,
         plus (B) any amounts in respect thereof remaining unpaid from previous
         Distribution Dates; and

                  (2) to the Holders of REMIC I Regular Interest I-LT2 and REMIC
         I Regular Interest I-LT2PF, in an amount equal to the remainder of the
         Available Funds for such Distribution Date after the distributions made
         pursuant to clause (1) above, allocated as follows:

                           (a) to the Holders of REMIC I Regular Interest I-LT2,
                  until the Uncertificated Balance of REMIC I Regular Interest
                  I-LT2 is reduced to zero;

                           (b) to the Holders of REMIC I Regular Interest
                  I-LT2PF, until the Uncertificated Balance of REMIC I Regular
                  Interest I-LT2PF is reduced to zero; and

                           (c) any remaining amount to the Holders of the Class
                  R Certificates (in respect of the Class R-I Interest);

                  provided, however, that for the first and second Distribution
                  Dates, such amounts relating to the Initial Group II Mortgage
                  Loans shall be allocated to REMIC I Regular Interest I-LT2 and
                  such amounts relating to the Subsequent Group II Mortgage
                  Loans shall be allocated to REMIC I Regular Interest I-LT2PF.

         On each Distribution Date, all amounts representing Prepayment Charges
in respect of the Mortgage Loans received during the related Prepayment Period
will be distributed by REMIC I to the Holders of REMIC I Regular Interest I-LTP.
The payment of the foregoing amounts to the Holders of REMIC I Regular Interest
I-LTP shall not reduce the Uncertificated Balance thereof.

          (A) On each Distribution Date, the following amounts, in the following
order of priority, shall be distributed by REMIC II to REMIC III on account of
the REMIC II Regular Interests or withdrawn from the Distribution Account and
distributed to the Holders of the Class R Certificates (in respect of the Class
R-II Interest), as the case may be:

         (a) first, to Holders of REMIC II Regular Interest II-LTAA, REMIC II
Regular Interest II-LTAI1, REMIC II Regular Interest II-LTAII1, REMIC II Regular
Interest II-LTAII2, REMIC II Regular Interest II-LTAII3, REMIC II Regular
Interest II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II Regular Interest
II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II Regular Interest II-LTM5,
REMIC II Regular Interest II-LTM6, REMIC II Regular Interest II-LTM7, REMIC II
Regular Interest II-LTM8, REMIC II Regular Interest II-LTM9, REMIC II Regular
Interest II-LTM10, REMIC II Regular Interest II-LTM11 and REMIC II Regular
Interest II-LTZZ, on a PRO RATA basis, in an amount equal to (A) the
Uncertificated Interest for such Distribution Date, plus (B) any amounts in
respect thereof remaining unpaid from previous Distribution Dates. Amounts
payable as Uncertificated Interest in respect of REMIC II Regular Interest
II-LTZZ shall be reduced and deferred when the REMIC II Overcollateralized
Amount is less than the REMIC II Overcollateralization Target Amount, by the
lesser of (x) the amount of such difference and (y) the Maximum II-LTZZ
Uncertificated Interest Deferral Amount and such amount will be payable to the
Holders of REMIC II Regular Interest II-LTAI1, REMIC II Regular Interest
II-LTAII1, REMIC II Regular Interest II-LTAII2, REMIC II Regular Interest
II-LTAII3, REMIC II Regular Interest II-LTM1, REMIC II Regular Interest II-LTM2,
REMIC II Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II
Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II Regular
Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II Regular Interest
II-LTM9, REMIC II Regular Interest II-LTM10 and REMIC II Regular Interest
II-LTM11 in the same proportion as the Overcollateralization Increase Amount is
allocated to the Corresponding Certificates and the Uncertificated Balance of
the REMIC II Regular Interest II-LTZZ shall be increased by such amount;

         (b) to the Holders of REMIC II Regular Interest II-LT1SUB, REMIC II
Regular Interest II-LT1GRP, REMIC II Regular Interest II-LT2SUB, REMIC II
Regular Interest II-LT2GRP and REMIC II Regular Interest II-LTXX, on a PRO RATA
basis, in an amount equal to (A) the Uncertificated Interest for such
Distribution Date, plus (B) any amounts in respect thereof remaining unpaid from
previous Distribution Dates;

         (c) to the Holders of REMIC II Regular Interests, in an amount equal to
the remainder of the REMIC II Marker Allocation Percentage of the Available
Funds for such Distribution Date after the distributions made pursuant to clause
(a) above, allocated as follows:

                  (i) 98.00% of such remainder (other than amounts payable under
         clause (iii) below) to the Holders of REMIC II Regular Interest II-LTAA
         and REMIC II Regular Interest II-LTP, until the Uncertificated Balance
         of such REMIC II Regular Interests are reduced to zero; provided,
         however, that REMIC II Regular Interest II-LTP shall not be reduced
         until the Distribution Date immediately following the expiration of the
         latest Prepayment Charge as identified on the Prepayment Charge
         Schedule or any Distribution Date thereafter, at which point such
         amount shall be distributed to REMIC II Regular Interest II-LTP, until
         $100 has been distributed pursuant to this clause;

                  (ii) 2.00% of such remainder (other than amounts payable under
         clause (iii) below) first, to the Holders of REMIC II Regular Interest
         II-LTAI1, REMIC II Regular Interest II-LTAII1, REMIC II Regular
         Interest II-LTAII2, REMIC II Regular Interest II-LTAII3, REMIC II
         Regular Interest II-LTM1, REMIC II Regular Interest II-LTM2, REMIC II
         Regular Interest II-LTM3, REMIC II Regular Interest II-LTM4, REMIC II
         Regular Interest II-LTM5, REMIC II Regular Interest II-LTM6, REMIC II
         Regular Interest II-LTM7, REMIC II Regular Interest II-LTM8, REMIC II
         Regular Interest II-LTM9, REMIC II Regular Interest II-LTM10 and REMIC
         II Regular Interest II-LTM11 of such REMIC II Regular Interests are
         reduced to zero, 1.00% in the same proportion as principal payments are
         allocated to the Corresponding Certificates, and second, to the Holders
         of REMIC II Regular Interest II-LTZZ (other than amounts payable under
         clause (iii) below), until the Uncertificated Balance of such REMIC II
         Regular Interest is reduced to zero; and

                  (iii) any remaining amount to the Holders of the Class R
         Certificates (in respect of the Class R-II Interest);

         provided, however, that (i) 98.00% and (ii) 2.00% of any principal
payments that are attributable to an Overcollateralization Reduction Amount
shall be allocated to Holders of (i) REMIC II Regular Interest II-LTAA and REMIC
II Regular Interest II-LTP, in that order and (ii) REMIC II Regular Interest
II-LTZZ, respectively; provided, that REMIC II Regular Interest II-LTP shall not
be reduced until the Distribution Date immediately following the expiration of
the latest Prepayment Charge as identified on the Prepayment Charge Schedule or
any Distribution Date thereafter, at which point such amount shall be
distributed to REMIC II Regular Interest II-LTP, until $100 has been distributed
pursuant to this clause; and

         (d) to the Holders of REMIC II Regular Interests, in an amount equal to
the remainder of the REMIC II Sub WAC Allocation Percentage of Available Funds
for such Distribution Date after the distributions made pursuant to clause (b)
above, such that distributions of principal shall be deemed to be made to the
REMIC II Regular Interests first: so as to keep the Uncertificated Balance of
each REMIC II Regular Interest ending with the designation "GRP" equal to 0.01%
of the aggregate Stated Principal Balance of the Mortgage Loans in the related
Loan Group; second, to each REMIC II Regular Interest ending with the
designation "SUB," so that the Uncertificated Balance of each such REMIC II
Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated
Principal Balance of the Mortgage Loans in the related Loan Group over (y) the
current Certificate Principal Balance of the Class A Certificates in the related
Loan Group (except that if any such excess is a larger number than in the
preceding distribution period, the least amount of principal shall be
distributed to such REMIC II Regular Interests such that the REMIC II
Subordinated Balance Ratio is maintained); and third, any remaining principal to
REMIC II Regular Interest II-LTXX.

         Notwithstanding the priorities and amounts of distribution of funds
pursuant to this Section 4.08(a), actual distributions of the Available Funds
shall be made only in accordance with Section 4.02.

         (b) (i) All Realized Losses on the Group I Mortgage Loans shall be
allocated by the Trustee on each Distribution Date, first to REMIC I Regular
Interest I-LT1 and REMIC I Regular Interest I-LT1PF, until the Uncertificated
Balance of each such REMIC I Regular Interest has been reduced to zero; provided
however, that with respect to the first and second Distribution Dates, all
Realized Losses on the Initial Group I Mortgage Loans shall be allocated to
REMIC I Regular Interest I-LT1, until the Uncertificated Balance thereof has
been reduced to zero, and all Realized Losses on the Subsequent Group I Mortgage
Loans shall be allocated to REMIC I Regular Interest I-LT1PF until the
Uncertificated Balance thereof has been reduced to zero. All Realized Losses on
the Group II Mortgage Loans shall be allocated by the Trustee on each
Distribution Date, first to REMIC I Regular Interest I-LT2 and REMIC I Regular
Interest I-LT2PF, until the Uncertificated Balance of each such REMIC I Regular
Interest has been reduced to zero; provided however, that with respect to the
first and second Distribution Dates, all Realized Losses on the Initial Group II
Mortgage Loans shall be allocated to REMIC I Regular Interest I-LT2, until the
Uncertificated Balance thereof has been reduced to zero, and all Realized Losses
on the Subsequent Group II Mortgage Loans shall be allocated to REMIC I Regular
Interest I-LT2PF until the Uncertificated Balance thereof has been reduced to
zero.

         (ii) The REMIC II Marker Allocation Percentage of all Realized Losses
on the Mortgage Loans shall be allocated by the Trustee on each Distribution
Date to the following REMIC II Regular Interests in the specified percentages,
as follows: first, to Uncertificated Interest payable to the REMIC II Regular
Interest II-LTAA and REMIC II Regular Interest II-LTZZ up to an aggregate amount
equal to the REMIC II Interest Loss Allocation Amount, 98% and 2%, respectively;
second, to the Uncertificated Balances of the REMIC II Regular Interest II-LTAA
and REMIC II Regular Interest II-LTZZ up to an aggregate amount equal to the
REMIC II Principal Loss Allocation Amount, 98% and 2%, respectively; third, to
the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II
Regular Interest II-LTM11 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM11 has been reduced to zero; fourth, to the Uncertificated Balances of
REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM10 and REMIC
II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Balance of REMIC II Regular Interest II-LTM10 has been reduced to
zero; fifth, to the Uncertificated Balances of REMIC II Regular Interest
II-LTAA, REMIC II Regular Interest II-LTM9 and REMIC II Regular Interest
II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC
II Regular Interest II-LTM9 has been reduced to zero; sixth, to the
Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular
Interest II-LTM8 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM8 has been reduced to zero; seventh, to the Uncertificated Balances of
REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM7 and REMIC
II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Balance of REMIC II Regular Interest II-LTM7 has been reduced to
zero; eighth, to the Uncertificated Balances of REMIC II Regular Interest
II-LTAA, REMIC II Regular Interest II-LTM6 and REMIC II Regular Interest
II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance of REMIC
II Regular Interest II-LTM6 has been reduced to zero; ninth, to the
Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II Regular
Interest II-LTM5 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM5 has been reduced to zero; tenth, to the Uncertificated Balances of REMIC
II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM4 and REMIC II
Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated
Balance of REMIC II Regular Interest II-LTM4 has been reduced to zero; eleventh,
to the Uncertificated Balances of REMIC II Regular Interest II-LTAA, REMIC II
Regular Interest II-LTM3 and REMIC II Regular Interest II-LTZZ, 98%, 1% and 1%,
respectively, until the Uncertificated Balance of REMIC II Regular Interest
II-LTM3 has been reduced to zero; twelfth, to the Uncertificated Balances of
REMIC II Regular Interest II-LTAA, REMIC II Regular Interest II-LTM2 and REMIC
II Regular Interest II-LTZZ, 98%, 1% and 1%, respectively, until the
Uncertificated Balance of REMIC II Regular Interest II-LTM2 has been reduced to
zero; and thirteenth, to the Uncertificated Balances of REMIC II Regular
Interest II-LTAA, REMIC II Regular Interest II-LTM1 and REMIC II Regular
Interest II-LTZZ, 98%, 1% and 1%, respectively, until the Uncertificated Balance
of REMIC II Regular Interest II-LTM1 has been reduced to zero.

         (iii) The REMIC II Sub WAC Allocation Percentage of all Realized Losses
shall be applied after all distributions have been made on each Distribution
Date: first, so as to keep the Uncertificated Balance of each REMIC II Regular
Interest ending with the designation "GRP" equal to 0.01% of the aggregate
Stated Principal Balance of the Mortgage Loans in the related Loan Group;
second, to each REMIC II Regular Interest ending with the designation "SUB," so
that the Uncertificated Balance of each such REMIC II Regular Interest is equal
to 0.01% of the excess of (x) the aggregate Stated Principal Balance of the
Mortgage Loans in the related Loan Group over (y) the current Certificate
Principal Balance of the Class A Certificates in the related Loan Group (except
that if any such excess is a larger number than in the preceding distribution
period, the least amount of Realized Losses shall be applied to such REMIC II
Regular Interests such that the REMIC II Subordinated Balance Ratio is
maintained); and third, any remaining Realized Losses shall be allocated to
REMIC II Regular Interest II-LTXX.

<PAGE>

                                   ARTICLE V

                                THE CERTIFICATES

         Section 5.01 THE CERTIFICATES.

         The Certificates shall be substantially in the forms attached hereto as
exhibits. The Certificates shall be issuable in registered form, in the minimum
denominations in the Preliminary Statement, integral multiples of $1.00 in
excess thereof (except that one Certificate in each Class may be issued in a
different amount that must exceed the applicable minimum denomination) and
aggregate denominations per Class set forth in the Preliminary Statement.

         Subject to Section 9.02 respecting the final distribution on the
Certificates, on each Distribution Date, the Trustee shall make distributions to
each Certificateholder of record on the preceding Record Date either:

                  (x) by wire transfer in immediately available funds to the
         account of the Holder at a bank or other entity having appropriate
         facilities therefor, if the Holder has so notified the Trustee at least
         five (5) Business Days before the related Record Date; and

                  (y) by check mailed by first class mail to the
         Certificateholder at the address of such holder appearing in the
         Certificate Register.

         The Trustee shall execute the Certificates by manual or facsimile
signature of an authorized officer. 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 Trustee shall bind the Trustee,
notwithstanding that such individuals or any of them have ceased to be so
authorized before the countersignature 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 countersigned by the Trustee by manual signature, and such
countersignature 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 countersignature. On the
Closing Date, the Trustee shall countersign the Certificates to be issued at the
direction of the Depositor, or any affiliate thereof.

         The Depositor shall provide to the Trustee, on a continuous basis, an
adequate inventory of Certificates to facilitate transfers.

         Section 5.02  CERTIFICATE REGISTER; REGISTRATION OF TRANSFER AND
                       EXCHANGE OF CERTIFICATES.

         (a) The Trustee shall maintain, in accordance with Section 5.06, a
Certificate Register for the Trust Fund in which, subject to subsections (b) and
(c) below and to such reasonable regulations as it may prescribe, the Trustee
shall provide for the registration of Certificates and of transfers and
exchanges of Certificates as herein provided. Upon surrender for registration of
transfer of any Certificate, the Trustee shall execute and deliver, in the name
of the designated transferee or transferees, one or more new Certificates of the
same Class and aggregate Percentage Interest.

         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 Trustee. Whenever any Certificates are
so surrendered for exchange, the Trustee shall execute, countersign and deliver
the Certificates that the Certificateholder making the exchange is entitled to
receive. A written instrument of transfer in form satisfactory to the Trustee
duly executed by the Holder or his attorney duly authorized in writing shall
accompany every Certificate presented or surrendered for registration of
transfer or exchange.

         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 destroyed by the Trustee in accordance with
the Trustee's customary procedures.

         (b) No transfer of a Private 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 said Act and any applicable state securities
laws. In the event that such a transfer of a Private Certificate is to be made
without registration or qualification (other than in connection with (i) the
initial transfer of any such Certificate by the Depositor to an Affiliate
thereof, (ii) the transfer of any such Class C, Class P or Residual Certificate
to the applicable issuer or indenture trustee under the Indenture or (iii) a
transfer of any such Class C, Class P or Residual Certificate from the
applicable issuer or indenture trustee under the Indenture to the Depositor or
an Affiliate thereof), but in reliance on an exemption from the Securities Act
and any applicable state securities laws, to assure compliance with the
Securities Act and any applicable state securities laws, the Certificateholder
desiring to effect the transfer shall certify to the Trustee in writing the
facts surrounding the transfer in substantially the form of Exhibit J (the
"TRANSFEROR CERTIFICATE") and either (i) deliver to the Trustee a letter in
substantially the form of Exhibit L (the "RULE 144A LETTER") or (ii) deliver to
the Trustee at the expense of the transferor an Opinion of Counsel that the
transfer may be made without registration under the Securities Act. The
Depositor shall provide to any Holder of a Private Certificate and any
prospective transferee designated by the Holder of a Private Certificate,
information regarding the related Certificates and the Mortgage Loans and any
other information necessary to satisfy the condition to eligibility in Rule
144A(d)(4) for transfer of the Certificate without registration thereof under
the Securities Act pursuant to the registration exemption provided by Rule 144A.
The Trustee and the Master Servicer shall cooperate with the Depositor in
providing the Rule 144A information referenced in the preceding sentence,
including providing to the Depositor such information regarding the
Certificates, the Mortgage Loans and other matters regarding the Trust Fund the
Depositor reasonably requests to meet its obligation under the preceding
sentence. Each Holder of a Private Certificate desiring to effect a transfer
shall, and does hereby agree to, indemnify the Trustee, the NIM Insurer, the
Depositor, the Seller, and the Master Servicer 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.

         No transfer of an ERISA-Restricted Certificate shall be made unless the
Trustee and the NIM Insurer shall have received either:

                  (i) a representation from the transferee of such Certificate
         acceptable to and in form and substance satisfactory to the Trustee and
         the NIM Insurer (if the Certificate is a Private Certificate, the
         requirement is satisfied only by the Trustee's receipt of a
         representation letter from the transferee substantially in the form of
         Exhibit L, and if the Certificate is a Residual Certificate, the
         requirement is satisfied only by the Trustee's receipt of a Transfer
         Affidavit from the transferee substantially in the form of Exhibit I),
         to the effect that (x) the transferee is not an employee benefit plan
         or arrangement subject to Section 406 of ERISA or a plan subject to
         Section 4975 of the Code, or a Person acting on behalf of any such plan
         or arrangement or using the assets of any such plan or arrangement to
         effect the transfer, or (y) if the ERISA-Restricted Certificate is not
         a Class C or Class R Certificate and has been the subject of an
         ERISA-Qualifying Underwriting and the purchaser is an insurance
         company, a representation that the purchaser is an insurance company
         that is purchasing such Certificates with funds contained in an
         "insurance company general account" (as such term is defined in Section
         V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60") and
         that the purchase and holding of such Certificates are covered under
         Sections I and III of PTCE 95-60; or

                  (ii) in the case of any ERISA-Restricted Certificate presented
         for registration in the name of an employee benefit plan subject to
         ERISA, or a plan or arrangement subject to Section 4975 of the Code (or
         comparable provisions of any subsequent enactments), or a trustee of
         any such plan or any other Person acting on behalf of any such plan or
         arrangement or using such plan's or arrangement's assets, an Opinion of
         Counsel satisfactory to the Trustee, the NIM Insurer and the Master
         Servicer, which Opinion of Counsel shall not be an expense of the
         Trustee, the NIM Insurer, the Master Servicer or the Trust Fund,
         addressed to the Trustee, to the effect that the purchase or holding of
         such ERISA-Restricted Certificate will not result in a nonexempt
         prohibited transaction under ERISA or Section 4975 of the Code and will
         not subject the Trustee, the NIM Insurer or the Master Servicer to any
         obligation in addition to those expressly undertaken in this Agreement
         or to any liability.

For purposes of the preceding sentence, neither an Opinion of Counsel nor any
certification shall be required in connection with (i) the initial transfer of
any such Certificate by the Depositor to an Affiliate thereof, (ii) the transfer
of any such Class C, Class P or Residual Certificate to the applicable issuer or
indenture trustee under the Indenture or (iii) a transfer of any such Class C,
Class P or Residual Certificate from the issuer or indenture trustee under the
Indenture to the Depositor or an Affiliate thereof (in which case, the Depositor
or any Affiliate thereof shall have deemed to have represented that it is not
using the assets of any plan or arrangement subject to Section 406 of ERISA or
plan subject to Section 4975 of the Code) and the Trustee shall be entitled to
conclusively rely upon a representation (which, upon the request of the Trustee,
shall be a written representation) from the Depositor of the status of such
transferee as an Affiliate of the Depositor. In addition, with respect to
transfers of an ERISA-Restricted Certificate (that is not a Residual
Certificate) other than as described in the preceding sentence, if the
representation letter or Opinion of Counsel referred to in the preceding
sentence is not furnished, the appropriate representation in clause (i) shall be
deemed to have been made to the Trustee by the transferee's (including an
initial acquirer's) acceptance of the ERISA-Restricted Certificates. If any such
representation in the preceding sentences is violated, or any attempt to
transfer to a plan or arrangement subject to Section 406 of ERISA or a plan
subject to Section 4975 of the Code, or a Person acting on behalf of any such
plan or arrangement or using the assets of any such plan or arrangement, is made
without the Opinion of Counsel, the attempted transfer or acquisition shall be
void.

         Each beneficial owner of a Class A-II-1 Certificate or a Subordinated
Certificate (other than a Class M-11 Certificate) or any interest therein shall
be deemed to have represented, by virtue of its acquisition or holding of that
certificate or interest therein, that either (i) it is not a plan or arrangement
subject to Section 406 of ERISA or a plan subject to Section 4975 of the Code,
or a Person acting on behalf of any such plan or arrangement or using the assets
of any such plan or arrangement, (ii) in the case of a Subordinated Certificate
other than the Class M-11 Certificate, it has acquired and is holding such
certificate in reliance on the Underwriter's Exemption, and that it understands
that there are certain conditions to the availability of the Underwriter's
Exemption, including that such certificate must be rated, at the time of
purchase, not lower than "BBB-" (or its equivalent) by S&P, Fitch or Moody's,
and such certificate is so rated, in the case of the Class A-II-1 Certificates,
that it will represent that it is an "accredited investor" as defined in Rule
501(a)(1) of Regulation D issued under the Securities Act and will obtain a
representation from any transferee that such transferee is an accredited
investor so long as it is required to obtain a representation regarding
compliance with the Securities Act or (iii) (1) it is an insurance company, (2)
the source of funds used to acquire or hold the certificate or interest therein
is an "insurance company general account," as such term is defined in PTCE
95-60, and (3) the conditions in Sections I and III of PTCE 95-60 have been
satisfied.

         To the extent permitted under applicable law (including ERISA), the
Trustee shall not be liable to any Person for any registration of transfer of
any ERISA-Restricted Certificate that is in fact not permitted by this Section
5.02(b) or for making any payments due on such Certificate to the Holder thereof
or taking any other action with respect to such Holder under this Agreement so
long as the transfer was registered by the Trustee in accordance with the
foregoing requirements.

         (c) Each Person who has or who acquires any Ownership Interest in a
Residual Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Residual
Certificate are expressly subject to the following provisions:

                  (i) Each Person holding or acquiring any Ownership Interest in
         a Residual Certificate shall be a Permitted Transferee and shall
         promptly notify the Trustee (with a copy of any such notice to the NIM
         Insurer) of any change or impending change in its status as a Permitted
         Transferee.

                  (ii) No Ownership Interest in a Residual Certificate may be
         registered on the Closing Date or thereafter transferred, and the
         Trustee shall not register the Transfer of any Residual Certificate
         unless, in addition to the certificates required to be delivered to the
         Trustee under subparagraph (b) above, the Trustee shall have been
         furnished with an affidavit (a copy of which shall be provided to the
         NIM Insurer) (a "TRANSFER AFFIDAVIT") of the initial owner or the
         proposed transferee in the form of Exhibit I (subject to the
         limitations with respect thereto as set forth in Section 5.02(b)).

                  (iii) Subject to the limitations set forth in Section 5.02(b),
         each Person holding or acquiring any Ownership Interest in a Residual
         Certificate shall agree:

                           (A) to obtain a Transfer Affidavit from any other
                  Person to whom such Person attempts to Transfer its Ownership
                  Interest in a Residual Certificate;

                           (B) to obtain a Transfer Affidavit from any Person
                  for whom such Person is acting as nominee, trustee or agent in
                  connection with any Transfer of a Residual Certificate; and

                           (C) not to Transfer its Ownership Interest in a
                  Residual Certificate or to cause the Transfer of an Ownership
                  Interest in a Residual Certificate to any other Person if it
                  has actual knowledge that such Person is not a Permitted
                  Transferee.

                  (iv) Any attempted or purported Transfer of any Ownership
         Interest in a Residual Certificate in violation of this Section 5.02(c)
         shall be absolutely null and void and shall vest no rights in the
         purported Transferee. If any purported transferee shall become a Holder
         of a Residual Certificate in violation of this Section 5.02(c), then
         the last preceding Permitted Transferee shall be restored to all rights
         as Holder thereof retroactive to the date of registration of Transfer
         of such Residual Certificate. The Trustee shall not be liable to any
         Person for any registration of Transfer of a Residual Certificate that
         is in fact not permitted by Section 5.02(b) and this Section 5.02(c) or
         for making any payments due on such Certificate to the Holder thereof
         or taking any other action with respect to such Holder under this
         Agreement so long as the Transfer was registered after receipt of the
         related Transfer Affidavit, Transferor Certificate and either the Rule
         144A Letter or the Investment Letter. The Trustee shall be entitled but
         not obligated to recover from any Holder of a Residual Certificate that
         was in fact not a Permitted Transferee at the time it became a Holder
         or, at such subsequent time as it became other than a Permitted
         Transferee, all payments made on such Residual Certificate at and after
         either such time. Any such payments so recovered by the Trustee shall
         be paid and delivered by the Trustee to the last preceding Permitted
         Transferee of such Certificate.

                  (v) The Depositor shall use its best efforts to make
         available, upon receipt of written request from the Trustee, all
         information necessary to compute any tax imposed under Section 860E(e)
         of the Code as a result of a Transfer of an Ownership Interest in a
         Residual Certificate to any Holder who is not a Permitted Transferee.

         The restrictions on Transfers of a Residual Certificate in this Section
5.02(c) shall cease to apply (and the applicable portions of the legend on a
Residual Certificate may be deleted) with respect to Transfers occurring after
delivery to the Trustee of an Opinion of Counsel, which Opinion of Counsel shall
not be an expense of the Trust Fund, the Trustee, the Seller, the NIM Insurer or
the Master Servicer, to the effect that the elimination of such restrictions
will not cause the Trust Fund hereunder to fail to qualify as a REMIC at any
time that the Certificates are outstanding or result in the imposition of any
tax on the Trust Fund, a Certificateholder or any other Person. The Opinion of
Counsel shall be accompanied by written notification from each Rating Agency
that the removal of the restriction will not cause the Rating Agency to
downgrade its ratings of the Certificates. Each Person holding or acquiring any
Ownership Interest in a Residual Certificate hereby consents to any amendment of
this Agreement that, based on an Opinion of Counsel furnished to the Trustee, is
reasonably necessary (a) to ensure that the record ownership of, or any
beneficial interest in, a Residual Certificate is not transferred, directly or
indirectly, to a Person that is not a Permitted Transferee and (b) to provide
for a means to compel the Transfer of a Residual Certificate that is held by a
Person that is not a Permitted Transferee to a Holder that is a Permitted
Transferee.

         (d) The preparation and delivery of all certificates and opinions
referred to above in this Section 5.02 in connection with transfer shall be at
the expense of the parties to such transfers.

         (e) Except as provided below, the Book-Entry Certificates shall at all
times remain registered in the name of the Depository or its nominee and at all
times:

                  (i) registration of the Certificates may not be transferred by
         the Trustee except to another Depository;

                  (ii) the Depository shall maintain book-entry records with
         respect to the Certificate Owners and with respect to ownership and
         transfers of such Book-Entry Certificates;

                  (iii) ownership and transfers of registration of the
         Book-Entry Certificates on the books of the Depository shall be
         governed by applicable rules established by the Depository;

                  (iv) the Depository may collect its usual and customary fees,
         charges, and expenses from its Depository Participants;

                  (v) the Trustee shall deal with the Depository, Depository
         Participants and indirect participating firms as representatives of the
         Certificate Owners of the Book-Entry Certificates for purposes of
         exercising the rights of holders under this Agreement, and requests and
         directions for and votes of such representatives shall not be deemed to
         be inconsistent if they are made with respect to different Certificate
         Owners; and

                  (vi) the Trustee may rely and shall be fully protected in
         relying upon information furnished by the Depository with respect to
         its Depository Participants and furnished by the Depository
         Participants with respect to indirect participating firms and persons
         shown on the books of such indirect participating firms as direct or
         indirect Certificate Owners.

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

         If (x)

                  (i) the Depository or the Depositor advises the Trustee in
         writing that the Depository is no longer willing or able to properly
         discharge its responsibilities as Depository, and

                  (ii) the Trustee or the Depositor is unable to locate a
         qualified successor, or

         (y) after the occurrence of an Event of Default, Certificate Owners
         representing at least 51% of the Certificate Balance of the Book-Entry
         Certificates together advise the Trustee and the Depository through the
         Depository Participants in writing that the continuation of a
         book-entry system through the Depository is no longer in the best
         interests of the Certificate Owners,

then the Trustee shall notify all Certificate Owners, through the Depository, of
the occurrence of any such event and of the availability of definitive,
fully-registered Certificates (the "DEFINITIVE CERTIFICATES") to Certificate
Owners requesting the same. Upon surrender to the Trustee of the related Class
of Certificates by the Depository, accompanied by the instructions from the
Depository for registration, the Trustee shall issue the Definitive
Certificates. None of the Master Servicer, the Depositor or the Trustee shall be
liable for any delay in delivery of such instruction, and each may conclusively
rely on, and shall be protected in relying on, such instructions. The Master
Servicer shall provide the Trustee with an adequate inventory of certificates to
facilitate the issuance and transfer of Definitive Certificates. Upon the
issuance of Definitive Certificates, all references herein to obligations
imposed upon or to be performed by the Depository shall be deemed to be imposed
upon and performed by the Trustee, to the extent applicable with respect to such
Definitive Certificates, and the Trustee shall recognize the Holders of the
Definitive Certificates as Certificateholders hereunder; provided, that the
Trustee shall not by virtue of its assumption of such obligations become liable
to any party for any act or failure to act of the Depository.

         Section 5.03  MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES.

         If (a) any mutilated Certificate is surrendered to the Trustee, or (b)
the Trustee receives evidence to its satisfaction of the destruction, loss or
theft of any Certificate and the Master Servicer, the NIM Insurer and the
Trustee receive the security or indemnity required by them to hold each of them
harmless, then, in the absence of notice to the Trustee that the Certificate has
been acquired by a Protected Purchaser, and if the requirements of Section 8-406
of the UCC are met and subject to Section 8-405 of the UCC, the Trustee shall
execute, countersign and deliver, in exchange for or in lieu of any mutilated,
destroyed, lost or stolen Certificate, a new Certificate of like Class, tenor
and Percentage Interest. In connection with the issuance of any new Certificate
under this Section 5.03, the Trustee may require the payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee)
connected therewith. Any replacement Certificate issued pursuant to this Section
5.03 shall constitute complete and indefeasible evidence of ownership, as if
originally issued, whether or not the lost, stolen or destroyed Certificate is
found at any time.

         Section 5.04  PERSONS DEEMED OWNERS.

         The Master Servicer, the Trustee, the NIM Insurer and any agent of the
Master Servicer or the Trustee 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 Master Servicer, the Trustee, the NIM Insurer or any
agent of the Master Servicer or the Trustee shall be affected by any notice to
the contrary.

         Section 5.05 ACCESS TO LIST OF CERTIFICATEHOLDERS' NAMES AND ADDRESSES.

         If three or more Certificateholders and/or Certificate Owners (a)
request such information in writing from the Trustee, (b) state that those
Certificateholders and/or Certificate Owners desire to communicate with other
Certificateholders and/or Certificate Owners with respect to their rights under
this Agreement or under the Certificates and (c) provide a copy of the
communication that those Certificateholders and/or Certificate Owners propose to
transmit, or if the Depositor or Master Servicer requests such information in
writing from the Trustee, then the Trustee shall, within ten (10) Business Days
after the receipt of the request, provide the Depositor, the Master Servicer or
those Certificateholders and/or Certificate Owners at the recipients' expense
the most recent list of the Certificateholders of the Trust Fund held by the
Trustee. The Depositor and every Certificateholder, by receiving and holding a
Certificate, agree that the Trustee shall not be held accountable because of the
disclosure of any such information as to the list of the Certificateholders
and/or Certificate Owners hereunder, regardless of the source from which the
information was derived.

         Section 5.06  MAINTENANCE OF OFFICE OR AGENCY.

         The Trustee will maintain at its expense an office or agency in
Manhattan, New York City. Currently, that office is located at c/o DTC Transfer
Services, 55 Water Street, Jeanette Park Entrance, New York, New York 10041,
where Certificates may be surrendered for registration of transfer or exchange.
The Trustee will give prompt written notice to the Certificateholders of any
change in the location of its office or agency.

<PAGE>

                                   ARTICLE VI

                      THE DEPOSITOR AND THE MASTER SERVICER

         Section 6.01  RESPECTIVE LIABILITIES OF THE DEPOSITOR AND THE MASTER
                       SERVICER.

         The Depositor and the Master Servicer shall each be liable in
accordance herewith only to the extent of the obligations specifically and
respectively imposed upon and undertaken by them herein.

         Section 6.02  MERGER OR CONSOLIDATION OF THE DEPOSITOR OR THE MASTER
                       SERVICER.

         The Depositor and the Master Servicer will each keep in full effect its
existence, rights and franchises as a corporation or federal savings bank, as
the case may be, under the laws of the United States or under the laws of one of
the states thereof and will each obtain and preserve its qualification to do
business as a foreign corporation in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, or any of the Mortgage Loans and to perform
its respective duties under this Agreement.

         Any Person into which the Depositor or the Master Servicer may be
merged or consolidated, or any Person resulting from any merger or consolidation
to which the Depositor or the Master Servicer shall be a party, or any person
succeeding to the business of the Depositor or the Master Servicer, shall be the
successor of the Depositor or the Master Servicer, as the case may be,
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding. The successor or surviving Person to the Master Servicer must
be qualified to sell mortgage loans to, and to service mortgage loans on behalf
of, FNMA or FHLMC.

         Section 6.03  LIMITATION ON LIABILITY OF THE DEPOSITOR, THE SELLER, THE
                       MASTER SERVICER, AND OTHERS.

         None of the Depositor, the Seller, the Master Servicer, the NIM Insurer
or any of the directors, officers, employees, or agents of the Depositor, the
Seller, the NIM Insurer, or the Master Servicer shall be liable to the
Certificateholders for any action taken or for refraining from taking any action
in good faith pursuant to this Agreement, or for errors in judgment. This
provision shall not protect the Depositor, the Seller, the Master Servicer, or
any such person against any breach of representations or warranties made by it
herein or protect the Depositor, the Seller, the Master Servicer, or any such
person from any liability that would otherwise be imposed for willful
misfeasance, bad faith, or gross negligence in the performance of duties or
because of reckless disregard of obligations and duties hereunder.

         The Depositor, the Seller, the Master Servicer, the NIM Insurer and any
director, officer, employee, or agent of the Depositor, the Seller, the NIM
Insurer, or the Master Servicer may rely in good faith on any document of any
kind PRIMA FACIE properly executed and submitted by any Person respecting any
matters arising hereunder.

         The Depositor, the NIM Insurer, the Seller, the Master Servicer and any
director, officer, employee, or agent of the Depositor, the Seller, the NIM
Insurer or the Master Servicer shall be indemnified by the Trust Fund for any
loss, liability, or expense incurred in connection with any audit, controversy,
or judicial proceeding relating to a governmental taxing authority or any legal
action relating to this Agreement or the Certificates, other than any loss,
liability, or expense related to any specific Mortgage Loans (except any loss,
liability, or expense otherwise reimbursable pursuant to this Agreement) and any
loss, liability, or expense incurred because of willful misfeasance, bad faith,
or gross negligence in the performance of duties hereunder or because of
reckless disregard of duties hereunder.

         None of the Depositor, the NIM Insurer, the Seller, or the Master
Servicer need appear in, prosecute, or defend any legal action that is not
incidental to its respective duties hereunder and that in its opinion may
involve it in any expense or liability. Any of the Depositor, the NIM Insurer,
the Seller, or the Master Servicer may in its discretion undertake any such
action that it deems appropriate in respect of this Agreement and the rights and
duties of the parties hereto and interests of the Trustee and the
Certificateholders hereunder. In such event, the legal expenses and costs of the
action and any liability resulting from it shall be expenses, costs and
liabilities of the Trust Fund, and the Depositor, the NIM Insurer, the Seller,
and the Master Servicer shall be entitled to be reimbursed therefor out of the
Certificate Account.

         Section 6.04  LIMITATION ON RESIGNATION OF THE MASTER SERVICER.

         The Master Servicer shall not resign from the obligations hereby
imposed on it except (a) upon appointment of a successor servicer that is
reasonably acceptable to the Trustee and the NIM Insurer and receipt by the
Trustee of a letter from each Rating Agency that the resignation and appointment
will not result in a downgrading of the rating of any of the Certificates or (b)
upon determination that its duties hereunder are no longer permissible under
applicable law. Any such determination under clause (b) permitting the
resignation of the Master Servicer shall be evidenced by an Opinion of Counsel
to that effect delivered to the Trustee. No such resignation shall become
effective until the Trustee or a successor Master Servicer shall have assumed
the Master Servicer's obligations hereunder.

         Section 6.05  INSPECTION.

         The Master Servicer, in its capacity as Master Servicer, shall afford
the Trustee and the NIM Insurer, upon reasonable advance notice, during normal
business hours, access to all records maintained by the Master Servicer in
respect of its rights and obligations hereunder and access to officers of the
Master Servicer responsible for such obligations. Upon request, the Master
Servicer shall furnish to the Trustee and the NIM Insurer its most recent
publicly available financial statements and any other information relating to
its capacity to perform its obligations under this Agreement reasonably
requested by the NIM Insurer.

<PAGE>

                                  ARTICLE VII

                                     DEFAULT

         Section 7.01  EVENTS OF DEFAULT.

         "EVENT OF DEFAULT," wherever used herein, means any one of the
following events:

         (a) any failure by the Master Servicer to deposit in the Certificate
Account or remit to the Trustee any payment (other than a payment required to be
made under Section 4.01) required to be made by it under this Agreement, which
failure continues unremedied for five days after the date on which written
notice of the failure has been given to the Master Servicer by the Trustee, the
NIM Insurer, or the Depositor, or to the Master Servicer, the NIM Insurer, and
the Trustee by the Holders of Certificates of any Class evidencing not less than
25% of the aggregate Percentage Interests of the Class; or

         (b) any failure by the Master Servicer to observe or perform in any
material respect any other of the covenants or agreements on the part of the
Master Servicer contained in this Agreement, which failure materially affects
the rights of Certificateholders and continues unremedied for a period of sixty
(60) days after the date on which written notice of such failure shall have been
given to the Master Servicer by the Trustee, the NIM Insurer, or the Depositor,
or to the Master Servicer, the NIM Insurer, and the Trustee by the Holders of
Certificates of any Class evidencing not less than 25% of the Percentage
Interests of the Class; provided that the sixty day cure period shall not apply
to the initial delivery of the Mortgage File for Delayed Delivery Mortgage Loans
nor the failure to repurchase or substitute in lieu thereof; or

         (c) a decree or order of a court or agency or supervisory authority
having jurisdiction in the premises for the appointment of a receiver,
conservator or liquidator in any insolvency, readjustment of debt, marshalling
of assets and liabilities or similar proceedings, or for the winding-up or
liquidation of its affairs, shall have been entered against the Master Servicer
and such decree or order shall have remained in force undischarged or unstayed
for a period of sixty (60) consecutive days; or

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

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

         (f) the Master Servicer shall fail (i) to make an Advance on the Master
Servicer Advance Date or (ii) to reimburse in full the Trustee within two days
of the Master Servicer Advance Date for any Advance made by the Trustee pursuant
to Section 4.01(b).

         If an Event of Default described in clauses (a) through (f) of this
Section 7.01 shall occur, then, and in each and every such case, so long as such
Event of Default shall not have been remedied, the Trustee may, or at the
direction of the NIM Insurer or the Holders of Certificates of any Class
evidencing not less than 662/3% of the Percentage Interests of the Class, the
Trustee shall by notice in writing to the Master Servicer (with a copy to each
Rating Agency), terminate all of the rights and obligations of the Master
Servicer under this Agreement and in the Mortgage Loans and the proceeds
thereof, other than its rights as a Certificateholder hereunder. On and after
the receipt by the Master Servicer of such written notice, all authority and
power of the Master Servicer hereunder, whether with respect to the Mortgage
Loans or otherwise, shall pass to and be vested in the Trustee. The Trustee
shall make any Advance that the Master Servicer failed to make, whether or not
the obligations of the Master Servicer have been terminated pursuant to this
Section.

         The Trustee is hereby authorized and empowered to execute and deliver,
on behalf of the Master Servicer, as attorney-in-fact or otherwise, any
documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement or assignment of
the Mortgage Loans and related documents, or otherwise. Unless expressly
provided in such written notice, no such termination shall affect any obligation
of the Master Servicer to pay amounts owed pursuant to Article VIII. The Master
Servicer agrees to cooperate with the Trustee in effecting the termination of
the Master Servicer's responsibilities and rights hereunder, including the
transfer to the Trustee of all cash amounts that shall at the time be credited
to the Certificate Account, or thereafter be received with respect to the
Mortgage Loans. If the Master Servicer fails to make any Advance required under
Section 4.01 of this Agreement, thereby triggering an Event of Default described
in clause (f) of this Section 7.01, the Trustee shall make such Advance on that
Distribution Date.

         Notwithstanding any termination of the activities of the Master
Servicer hereunder, the Master Servicer shall be entitled to receive, out of any
late collection of a Scheduled Payment on a Mortgage Loan that was due before
the notice terminating the Master Servicer's rights and obligations as Master
Servicer hereunder and received after the notice, that portion thereof to which
the Master Servicer would have been entitled pursuant to Sections 3.09(a)(i)
through (v) and (vii), and any other amounts payable to the Master Servicer
hereunder the entitlement to which arose before the termination of its
activities hereunder.

         Section 7.02  TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR.

         On and after the time the Master Servicer receives a notice of
termination pursuant to Section 7.01, the Trustee shall, subject to and to the
extent provided in Section 3.05, be the successor to the Master Servicer in its
capacity as Master Servicer under this Agreement and the transactions provided
for herein and shall be subject to all the responsibilities, duties and
liabilities (other than any liabilities incurred by the Master Servicer prior to
its termination hereunder) relating thereto placed on the Master Servicer by the
terms hereof and applicable law, including the obligation to make Advances
pursuant to Section 4.01. As compensation therefor, the Trustee shall be
entitled to all funds relating to the Mortgage Loans that the Master Servicer
would have been entitled to charge to the Certificate Account or Distribution
Account if the Master Servicer had continued to act hereunder.

         Notwithstanding the foregoing, if the Trustee has become the successor
to the Master Servicer in accordance with Section 7.01, the Trustee may, if it
shall be unwilling to so act, or shall, if it is prohibited by applicable law
from making Advances pursuant to Section 4.01 or if it is otherwise unable to so
act, appoint, or petition a court of competent jurisdiction to appoint, any
established mortgage loan servicing institution reasonably acceptable to the NIM
Insurer (as evidenced by the prior written consent of the NIM Insurer), the
appointment of which does not adversely affect the then current rating of the
Certificates and the NIM Insurer guaranteed notes by each Rating Agency, as the
successor to the Master Servicer hereunder in the assumption of all or any part
of the obligations of the Master Servicer hereunder.

         Any successor to the Master Servicer shall be an institution that is a
FNMA and FHLMC approved seller/servicer in good standing, that has a net worth
of at least $15,000,000, that is willing to service the Mortgage Loans and that
executes and delivers to the Depositor and the Trustee an agreement accepting
such delegation and assignment, containing an assumption by it of the rights and
obligations of the Master Servicer (other than liabilities of the Master
Servicer under Section 6.03 incurred before termination of the Master Servicer
under Section 7.01), with like effect as if originally named as a party to this
Agreement; provided, that each Rating Agency acknowledges that its rating of the
Certificates in effect immediately before the assignment and delegation will not
be qualified or reduced as a result of the assignment and delegation.

         Pending appointment of a successor to the Master Servicer hereunder,
the Trustee, unless the Trustee is prohibited by law from so acting, shall,
subject to Section 3.05, act in such capacity as hereinabove provided. In
connection with such appointment and assumption, the Trustee may make such
arrangements for the compensation of the successor out of payments on Mortgage
Loans as it and the successor shall agree. No such compensation shall exceed the
Master Servicing Fee Rate. The Trustee and the successor shall take any action,
consistent with this Agreement, necessary to effectuate the succession.

         Neither the Trustee nor any other successor Master Servicer shall be
deemed to be in default hereunder because of any failure to make, or any delay
in making, any distribution hereunder or any portion thereof or any failure to
perform, or any delay in performing, any duties hereunder, in either case caused
by the failure of the Master Servicer to deliver or provide, or any delay in
delivering or providing, any cash, information, documents or records to it. The
appointment of a successor Master Servicer shall not affect any liability of the
predecessor Master Servicer that my have arisen under this Agreement before its
termination as Master Servicer to pay any deductible under an insurance policy,
to indemnify any person, or otherwise, nor shall any successor Master Servicer
be liable for any acts or omissions of the predecessor Master Servicer or for
any breach by the Master Servicer of any of its representations and warranties
contained in this Agreement.

         In connection with the termination or resignation of the Master
Servicer hereunder, either (i) the successor Master Servicer, including the
Trustee if the Trustee is acting as successor Master Servicer, shall represent
and warrant that it is a member of MERS in good standing and shall agree to
comply in all material respects with the rules and procedures of MERS in
connection with the servicing of the Mortgage Loans that are registered with
MERS, or (ii) the predecessor Master Servicer shall cooperate with the successor
Master Servicer either (x) in causing MERS to execute and deliver an assignment
of Mortgage in recordable form to transfer the Mortgage from MERS to the Trustee
and to execute and deliver such other notices, documents and other instruments
as may be necessary or desirable to effect a transfer of such Mortgage Loan or
servicing of such Mortgage Loan on the MERS(R) System to the successor Master
Servicer or (y) in causing MERS to designate on the MERS(R) System the successor
Master Servicer as the servicer of such Mortgage Loan. The predecessor Master
Servicer shall file or cause to be filed any such assignment in the appropriate
recording office. The successor Master Servicer shall cause such assignment to
be delivered to the Trustee promptly upon receipt of the original with evidence
of recording thereon or a copy certified by the public recording office in which
such assignment was recorded.

         Any successor to the Master Servicer as Master Servicer shall give
notice of the change of servicer to the NIM Insurer and the Mortgagors and
shall, during the term of its service as Master Servicer, maintain in force the
policy or policies that the Master Servicer is required to maintain pursuant to
Section 6.05.

         Section 7.03  NOTIFICATION TO CERTIFICATEHOLDERS.

         (a) Upon any termination of or appointment of a successor to the Master
Servicer, the Trustee shall give prompt written notice thereof to
Certificateholders and each Rating Agency.

         (b) Within sixty (60) days after the occurrence of any Event of
Default, the Trustee shall transmit by mail to all Certificateholders and each
Rating Agency notice of each Event of Default hereunder known to the Trustee,
unless the Event of Default has been cured or waived.

<PAGE>

                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

         Section 8.01  DUTIES OF THE TRUSTEE.

         The Trustee, before the occurrence of an Event of Default and after the
curing of all Events of Default that may have occurred, shall undertake to
perform such duties and only the duties specifically set forth in this
Agreement. If an Event of Default has occurred and remains uncured, the Trustee
shall exercise such of the rights and powers vested in it by this Agreement, and
use the same degree of care and skill in their exercise as a prudent person
would exercise or use under the circumstances in the conduct of such person's
own affairs.

         The Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Trustee that are specifically required to be furnished pursuant to any provision
of this Agreement, shall examine them to determine whether they are in the form
required by this Agreement. If any such instrument is found not to conform to
the requirements of this Agreement in a material manner, the Trustee shall take
any action it deems appropriate to have the instrument corrected, and if the
instrument is not corrected to the Trustee's satisfaction, the Trustee shall
notify the Certificateholders of the defect. The Trustee shall not be
responsible for the accuracy or content of any resolution, certificate,
statement, opinion, report, document, order or other instrument.

         No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act, or its own willful misconduct.

         Unless an Event of Default known to the Trustee has occurred and is
continuing:

         (a) the duties and obligations of the Trustee shall be determined
solely by the express provisions of this Agreement, the Trustee shall not be
liable except for the performance of the duties specifically set forth in this
Agreement, no implied covenants or obligations shall be read into this Agreement
against the Trustee, and the Trustee may conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Agreement that it believed in good faith to be genuine and
to have been duly executed by the proper authorities respecting any matters
arising hereunder;

         (b) the Trustee shall not be liable for an error of judgment made in
good faith by a Responsible Officer or Responsible Officers of the Trustee,
unless it is finally proven that the Trustee was negligent in ascertaining the
pertinent facts; and

         (c) the Trustee shall not be liable with respect to any action taken,
suffered or omitted to be taken by it in good faith in accordance with the
direction of the NIM Insurer or Holders of Certificates evidencing not less than
25% of the Voting Rights of Certificates relating to the time, method and place
of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee under this Agreement.

         Section 8.02  CERTAIN MATTERS AFFECTING THE TRUSTEE.

         Except as otherwise provided in Section 8.01:

         (a) the Trustee may request and rely upon and shall be protected in
acting or refraining from acting upon any resolution, Officer's Certificate,
certificate of auditors or any other certificate, statement, instrument,
opinion, report, notice, request, consent, order, appraisal, bond or other paper
or document believed by it to be genuine and to have been signed or presented by
the proper party or parties and the Trustee shall have no responsibility to
ascertain or confirm the genuineness of any signature of any such party or
parties;

         (b) the Trustee may consult with counsel, financial advisers or
accountants and the advice of any such counsel, financial advisers or
accountants, and any Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken or suffered or omitted by it
hereunder in good faith and in accordance with such Opinion of Counsel;

         (c) the Trustee shall not be liable for any action taken, suffered or
omitted by it in good faith and believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Agreement;

         (d) the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond or other paper
or document, unless requested in writing so to do by the NIM Insurer or Holders
of Certificates evidencing not less than 25% of the Voting Rights allocated to
each Class of Certificates;

         (e) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents,
accountants, or attorneys, and the Trustee shall not be responsible for any
misconduct or negligence on the part of any agents, accountants or attorneys
appointed with due care by it hereunder;

         (f) the Trustee shall not be required to risk or expend its own funds
or otherwise incur any financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers hereunder if it shall
have reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not assured to it;

         (g) the Trustee shall not be liable for any loss on any investment of
funds pursuant to this Agreement (other than as issuer of the investment
security);

         (h) the Trustee shall not be deemed to have knowledge of an Event of
Default until a Responsible Officer of the Trustee shall have received written
notice thereof;

         (i) the Trustee need not exercise any of the trusts, rights or powers
vested in it by this Agreement or to institute, conduct or defend any litigation
in connection with this Agreement at the request, order or direction of the NIM
Insurer or any of the Certificateholders pursuant to this Agreement unless the
NIM Insurer or the Certificateholders shall have offered to the Trustee
reasonable security or indemnity satisfactory to the Trustee against the costs,
expenses and liabilities that may be incurred in connection therewith;

         (j) the Trustee or its Affiliates are permitted to receive additional
compensation that could be deemed to be in the Trustee's economic self-interest
for (i) serving as investment adviser, administrator, shareholder, servicing
agent, custodian or sub-custodian with respect to certain of the Permitted
Investments, (ii) using Affiliates to effect transactions in certain Permitted
Investments and (iii) effecting transactions in certain Permitted Investments.
The Trustee does not guarantee the performance of any Permitted Investments; and

         (k) the Trustee shall not knowingly take any action that would cause
the Trust Fund to fail to qualify as a qualifying special purpose entity.

         In order to comply with its duties under the U.S.A. Patriot Act, the
Trustee shall obtain and verify certain information and documentation from the
other parties to this Agreement, including, but not limited to, such parties'
name, address and other identifying information.

         Section 8.03  TRUSTEE NOT LIABLE FOR CERTIFICATES OR MORTGAGE LOANS.

         The recitals contained herein and in the Certificates shall be taken as
the statements of the Depositor or the Seller, as the case may be, and the
Trustee assumes no responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Agreement, the
Certificates, any Mortgage Loan or related document or MERS or the MERS(R)
System other than with respect to the Trustee's execution and countersignature
of the Certificates. The Trustee shall not be accountable for the use or
application by the Depositor or the Master Servicer of any funds paid to the
Depositor or the Master Servicer in respect of the Mortgage Loans or deposited
in or withdrawn from the Certificate Account by the Depositor or the Master
Servicer.

         Except as provided in Section 2.01(c), the Trustee shall have no
responsibility for filing or recording any financing or continuation statement
in any public office at any time or to otherwise perfect or maintain the
perfection of any security interest or lien granted to it hereunder (unless the
Trustee shall have become the successor Master Servicer).

         The Trustee executes the Certificates not in its individual capacity
but solely as Trustee of the Trust Fund created by this Agreement, in the
exercise of the powers and authority conferred and vested in it by this
Agreement. Each of the undertakings and agreements made on the part of the
Trustee on behalf of the Trust Fund in the Certificates is made and intended not
as a personal undertaking or agreement by the Trustee but is made and intended
for the purpose of binding only the Trust Fund.

         Section 8.04  TRUSTEE MAY OWN CERTIFICATES.

         The Trustee in its individual or any other capacity may become the
owner or pledgee of Certificates with the same rights as it would have if it
were not the Trustee.

         Section 8.05  TRUSTEE'S FEES AND EXPENSES.

         As compensation for its activities under this Agreement, the Trustee
may withdraw from the Distribution Account on each Distribution Date the Trustee
Fee for the Distribution Date. The Trustee and any director, officer, employee
or agent of the Trustee shall be indemnified by the Seller against any loss,
liability or expense (including reasonable attorney's fees) resulting from any
error in any tax or information return prepared by the Master Servicer or
incurred in connection with any claim or legal action relating to:

         (a) this Agreement;

         (b) the Certificates; or

         (c) the performance of any of the Trustee's duties under this
Agreement;

other than any loss, liability or expense incurred because of willful
misfeasance, bad faith or negligence in the performance of any of the Trustee's
duties under this Agreement. This indemnity shall survive the termination of
this Agreement or the resignation or removal of the Trustee under this
Agreement. Without limiting the foregoing, except as otherwise agreed upon in
writing by the Depositor and the Trustee, and except for any expense,
disbursement or advance arising from the Trustee's negligence, bad faith or
willful misconduct, the Seller shall pay or reimburse the Trustee, for all
reasonable expenses, disbursements and advances incurred or made by the Trustee
in accordance with this Agreement with respect to:

                  (A) the reasonable compensation, expenses and disbursements of
         its counsel not associated with the closing of the issuance of the
         Certificates;

                  (B) the reasonable compensation, expenses and disbursements of
         any accountant, engineer or appraiser that is not regularly employed by
         the Trustee, to the extent that the Trustee must engage them to perform
         services under this Agreement; and

                  (C) printing and engraving expenses in connection with
         preparing any Definitive Certificates.

Except as otherwise provided in this Agreement, the Trustee shall not be
entitled to payment or reimbursement for any routine ongoing expenses incurred
by the Trustee in the ordinary course of its duties as Trustee, Registrar or
Paying Agent under this Agreement or for any other expenses.

         Section 8.06  ELIGIBILITY REQUIREMENTS FOR THE TRUSTEE.

         The Trustee hereunder shall at all times be a corporation or
association organized and doing business under the laws of a state or the United
States of America, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least $50,000,000, subject
to supervision or examination by federal or state authority and with a credit
rating that would not cause any of the Rating Agencies to reduce their
respective then-current ratings of the Certificates (or, having provided such
security from time to time, as is sufficient to avoid such reduction) as
evidenced in writing by each Rating Agency. If such corporation or association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section 8.06 the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as disclosed in its most recent report of condition so published. If at
any time the Trustee ceases to be eligible in accordance with this Section 8.06,
the Trustee shall resign immediately in the manner and with the effect specified
in Section 8.07. The entity serving as Trustee may have normal banking and trust
relationships with the Depositor and its affiliates or the Master Servicer and
its affiliates. The Trustee may not be an affiliate of the Seller, the Depositor
or the Master Servicer, other than the Trustee in its role as successor to the
Master Servicer. The principal office of the Trustee (other than the initial
Trustee) shall be in a state with respect to which an Opinion of Counsel has
been delivered to the Trustee at the time the Trustee is appointed Trustee, to
the effect that the Trust will not be a taxable entity under the laws of that
state.

         Section 8.07  RESIGNATION AND REMOVAL OF THE TRUSTEE.

         The Trustee may at any time resign and be discharged from the trusts
hereby created by giving written notice of resignation to the Depositor, the
Master Servicer and each Rating Agency not less than sixty (60) days before the
date specified in the notice, when, subject to Section 8.08, the resignation is
to take effect, and acceptance by a successor trustee in accordance with Section
8.08 meeting the qualifications in Section 8.06. If no successor trustee meeting
those qualifications shall have been so appointed and have accepted appointment
within thirty (30) days after the notice of resignation, the resigning Trustee
may petition any court of competent jurisdiction for the appointment of a
successor trustee reasonably acceptable to the NIM Insurer.

         If at any time the Trustee shall cease to be eligible in accordance
with Section 8.06 and shall fail to resign after written request thereto by the
NIM Insurer or the Depositor, or if at any time the Trustee shall become
incapable of acting, or shall be adjudged as bankrupt or insolvent, or a
receiver of the Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, or a tax
is imposed with respect to the Trust Fund by any state in which the Trustee or
the Trust Fund is located and the imposition of the tax would be avoided by the
appointment of a different trustee, then the Depositor, the NIM Insurer or the
Master Servicer may remove the Trustee and appoint a successor trustee
reasonably acceptable to the NIM Insurer by written instrument, in triplicate,
one copy of which shall be delivered to the Trustee, one copy to the Master
Servicer and one copy to the successor trustee.

         The NIM Insurer or the Holders of Certificates (other than the Master
Servicer, Seller, Depositor or any affiliates or agents thereof) entitled to at
least 51% of the Voting Rights may at any time remove the Trustee and appoint a
successor trustee by written instrument or instruments, in triplicate, signed by
the NIM Insurer or the Holders or their attorneys-in-fact duly authorized, as
the case may be, one complete set of which shall be delivered by the successor
Trustee to the Master Servicer, one complete set to the Trustee so removed, and
one complete set to the successor so appointed. The successor trustee shall
notify each Rating Agency of any removal of the Trustee.

         Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to this Section 8.07 shall become effective upon
acceptance of appointment by the successor trustee as provided in Section 8.08.

         Section 8.08  SUCCESSOR TRUSTEE.

         Any successor trustee appointed as provided in Section 8.07 shall
execute, acknowledge and deliver to the Depositor, its predecessor trustee and
the Master Servicer an instrument accepting its appointment hereunder and
thereupon the resignation or removal of the predecessor trustee shall become
effective and the successor trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights and obligations of its
predecessor hereunder, with the like effect as if originally named as trustee
herein. The Depositor, the Master Servicer and the predecessor trustee shall
execute and deliver such instruments and do such other things as may reasonably
be required for more fully and certainly vesting and confirming in the successor
trustee all such rights and obligations.

         No successor trustee shall accept appointment as provided in this
Section 8.08 unless at the time of its acceptance, the successor trustee is
eligible under Section 8.06, is reasonably acceptable to the NIM Insurer, and
its appointment does not adversely affect the then current rating of the
Certificates.

         Upon acceptance of appointment by a successor trustee as provided in
this Section 8.08, the Depositor shall mail notice of the succession of such
trustee hereunder to the NIM Insurer and all Holders of Certificates. If the
Depositor fails to mail the notice within ten (10) days after acceptance of
appointment by the successor trustee, the successor trustee shall cause the
notice to be mailed at the expense of the Depositor.

         Section 8.09  MERGER OR CONSOLIDATION OF THE TRUSTEE.

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

         Section 8.10  APPOINTMENT OF CO-TRUSTEE OR SEPARATE 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 Trust Fund or property securing any Mortgage Note may at the
time be located, the Master Servicer and the Trustee acting jointly shall have
the power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Trustee and reasonably acceptable to the NIM Insurer to
act as co-trustee or co-trustees jointly with the Trustee, or separate trustee
or separate trustees, of all or any part of the Trust Fund, and to vest in them,
in such capacity and for the benefit of the Certificateholders, such title to
the Trust Fund or any part thereof, whichever is applicable, and, subject to the
other provisions of this Section 8.10, such powers, duties, obligations, rights
and trusts as the Master Servicer and the Trustee may consider appropriate. If
the Master Servicer shall not have joined in such appointment within fifteen
(15) days after the receipt by it of a request to do so, or in the case an Event
of Default shall have occurred and be continuing, the Trustee alone shall have
the power to make such appointment. No co-trustee or separate trustee hereunder
shall be required to meet the terms of eligibility as a successor trustee under
Section 8.06 and no notice to Certificateholders of the appointment of any
co-trustee or separate trustee shall be required under Section 8.08.

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

         (a) To the extent necessary to effectuate the purposes of this Section
8.10, all rights and obligations conferred or imposed upon the Trustee, except
for the obligation of the Trustee under this Agreement to advance funds on
behalf of the Master Servicer, shall be conferred or imposed upon and exercised
or performed by the Trustee and such separate trustee or co-trustee jointly (it
being understood that such separate trustee or co-trustee is not authorized to
act separately without the 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 (whether as Trustee hereunder or as successor to the Master
Servicer hereunder), the Trustee shall be incompetent or unqualified to perform
such act or acts, in which event such rights and obligations (including holding
title to the applicable Trust Fund or any portion thereof in any such
jurisdiction) shall be exercised and performed singly by such separate trustee
or co-trustee, but solely at the direction of the Trustee;

         (b) No trustee hereunder shall be held personally liable because of any
act or omission of any other trustee hereunder and such appointment shall not,
and shall not be deemed to, constitute any such separate trustee or co-trustee
as agent of the Trustee;

         (c) The Trustee, with the consent of the NIM Insurer, may at any time
accept the resignation of or remove any separate trustee or co-trustee; and

         (d) The Master Servicer, and not the Trustee, shall be liable for the
payment of reasonable compensation, reimbursement, and indemnification to any
such separate trustee or co-trustee.

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

         Any separate trustee or co-trustee may, at any time, constitute the
Trustee its agent or attorney-in-fact, with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-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 Trustee, to the extent permitted by law, without the appointment of a new
or successor trustee.

         Section 8.11  TAX MATTERS.

         It is intended that the assets with respect to which any REMIC election
pertaining to the Trust Fund is to be made, as described in the Preliminary
Statement, shall constitute, and that the conduct of matters relating to such
assets shall be such as to qualify such assets as, a "real estate mortgage
investment conduit" as defined in and in accordance with the REMIC Provisions.
In furtherance of such intention, the Trustee covenants and agrees that it shall
act as agent (and the Trustee is hereby appointed to act as agent) on behalf of
any REMIC created hereunder and that in such capacity it shall:

         (a) prepare and file in a timely manner, a U.S. Real Estate Mortgage
Investment Conduit Income Tax Return (Form 1066 or any successor form adopted by
the Internal Revenue Service) and prepare and file with the Internal Revenue
Service and applicable state or local tax authorities income tax or information
returns for each taxable year with respect to each REMIC created hereunder
described in the Preliminary Statement containing such information and at the
times and in the manner as may be required by the Code or state or local tax
laws, regulations or rules, and furnish to Certificateholders the schedules,
statements or information at such times and in such manner as may be required
thereby;

         (b) within thirty (30) days of the Closing Date, furnish to the
Internal Revenue Service, on Forms 8811 or as otherwise may be required by the
Code, the name, title, address and telephone number of the person that the
holders of the Certificates may contact for tax information relating thereto,
together with such additional information as may be required by such Form 8811,
and update such information at the time or times in the manner required by the
Code;

         (c) make an election that each REMIC created under this Agreement be
treated as a REMIC on the federal tax return for its first taxable year (and, if
necessary, under applicable state law);

         (d) prepare and forward to the Certificateholders and to the Internal
Revenue Service and, if necessary, state tax authorities, all information
returns and reports as and when required to be provided to them in accordance
with the REMIC Provisions, including the calculation of any original issue
discount using the prepayment assumptions set forth in "Yield, Prepayment and
Maturity Considerations-Structuring Assumptions" in the Prospectus Supplement;

         (e) provide information necessary for the computation of tax imposed on
the transfer of a Residual Certificate to a Person that is not a Permitted
Transferee, or an agent (including a broker, nominee or other middleman) of a
Non-Permitted Transferee, or a pass-through entity in which a Non-Permitted
Transferee is the record holder of an interest (the reasonable cost of computing
and furnishing such information may be charged to the Person liable for such
tax);

         (f) to the extent that they are under its control, conduct matters
relating to such assets at all times that any Certificates are outstanding so as
to maintain the status of any REMIC created hereunder as a REMIC under the REMIC
Provisions;

         (g) pay, from the sources specified in the last paragraph of this
Section 8.11, the amount of any federal or state tax, including prohibited
transaction taxes as described below, imposed on any REMIC created under this
Agreement before its termination when and as the same shall be due and payable
(but such obligation shall not prevent the Trustee or any other appropriate
Person from contesting any such tax in appropriate proceedings and shall not
prevent the Trustee from withholding payment of such tax, if permitted by law,
pending the outcome of such proceedings);

         (h) ensure that federal, state or local income tax or information
returns shall be signed by the Trustee or such other person as may be required
to sign such returns by the Code or state or local laws, regulations or rules;

         (i) maintain records relating to each REMIC created under this
Agreement, including the income, expenses, assets and liabilities thereof and
the fair market value and adjusted basis of the assets determined at such
intervals as may be required by the Code, as may be necessary to prepare the
foregoing returns, schedules, statements or information;

         (j) as and when necessary and appropriate, represent any REMIC created
under this Agreement in any administrative or judicial proceedings relating to
an examination or audit by any governmental taxing authority, request an
administrative adjustment as to any taxable year of any REMIC created under this
Agreement, enter into settlement agreements with any governmental taxing agency,
extend any statute of limitations relating to any tax item of any REMIC created
under this Agreement, and otherwise act on behalf of any REMIC created under
this Agreement in relation to any tax matter or controversy involving it; and

         (k) none of the Depositor, Master Servicer or the Trustee shall
knowingly or intentionally take any action or omit to take any action that would
cause the termination of any REMIC, or result in the imposition of any
non-indemnification taxes on any REMIC, created under this Agreement.

         To enable the Trustee to perform its duties under this Agreement, the
Depositor shall provide to the Trustee within ten (10) days after the Closing
Date all information or data that the Trustee requests in writing and determines
to be relevant for tax purposes to the valuations and offering prices of the
Certificates, including the price, yield, prepayment assumption and projected
cash flows of the Certificates and the Mortgage Loans. Moreover, the Depositor
shall provide information to the Trustee concerning the value to each Class of
Certificates of the right to receive Net WAC Cap Carry Forward Amounts from the
Excess Reserve Fund Account. Thereafter, the Depositor shall provide to the
Trustee promptly upon written request therefor any additional information or
data that the Trustee may, from time to time, reasonably request to enable the
Trustee to perform its duties under this Agreement. The Depositor hereby
indemnifies the Trustee for any losses, liabilities, damages, claims or expenses
of the Trustee arising from any errors or miscalculations of the Trustee that
result from any failure of the Depositor to provide, or to cause to be provided,
accurate information or data to the Trustee on a timely basis.

         If any tax is imposed on "prohibited transactions" of any REMIC as
defined in Section 860F(a)(2) of the Code, on the "net income from foreclosure
property" of any REMIC created under this Agreement as defined in Section
860G(c) of the Code, on any contribution to any REMIC created under this
Agreement after the Startup Day pursuant to Section 860G(d) of the Code, or any
other tax is imposed, including any minimum tax imposed on any REMIC created
under this Agreement pursuant to Sections 23153 and 24874 of the California
Revenue and Taxation Code, if not paid as otherwise provided for herein, the tax
shall be paid by (i) the Trustee if such tax or any other tax arises out of or
results from negligence of the Trustee in the performance of any of its
obligations under this Agreement, (ii) the Master Servicer or the Seller, in the
case of any such minimum tax, if such tax arises out of or results from a breach
by the Master Servicer or Seller of any of their obligations under this
Agreement, (iii) the Seller if such tax arises out of or results from the
Seller's obligation to repurchase a Mortgage Loan pursuant to Section 2.01,
2.02, 2.03 or 2.05, or (iv) in all other cases, or if the Trustee, the Master
Servicer or the Seller fails to honor its obligations under the preceding
clauses (i), (ii) or (iii), any such tax will be paid with amounts otherwise to
be distributed to the Certificateholders, as provided in Section 3.09(b).

         The Trustee shall treat the Excess Reserve Fund Account as an outside
reserve fund within the meaning of Treasury Regulation Section 1.860G-2(h) that
is owned by the holders of the Class C Certificates and that is not an asset of
any REMIC created hereunder. The Trustee shall treat the rights of the holders
of each Class of Certificates (other than the Class C, Class P and Class R
Certificates) to receive payments from the Excess Reserve Fund Account as rights
in an interest rate corridor contract written by: (i) the Cap Contract
Counterparty in respect of any Net WAC Shortfalls funded by the applicable Cap
Contract and in respect of any residual payments from such Cap Contract received
by the Class C Certificates; and (ii) the holders of the Class C Certificates in
respect of any Net WAC Shortfalls that are not funded by such Cap Contract, in
each case in favor of the other Certificateholders. Thus, each Certificate
(other than the Class C, Class P and Class R Certificates) shall be treated as
representing ownership of not only a REMIC regular interest, but also ownership
of an interest in an interest rate corridor contract. For purposes of
determining the issue price of the Master REMIC regular interests, the Trustee
shall assume that the Cap Contracts in respect of the Group I Certificates, the
Group II Certificates and the Subordinated Certificates (other than the Class P
and Class C Certificates) have a value of $83,000 with respect to the Group I
Certificates, $65,000 with respect to the Group II Certificates and $72,000 with
respect to the Subordinated Certificates.

         Section 8.12  PERIODIC FILINGS.

         Beginning with the first Distribution Date, the Trustee, pursuant to
written instructions of the Depositor (which instructions shall be deemed to be
this Section 8.12), shall prepare and file all periodic reports required under
the Exchange Act in conformity with the terms of the relief granted to issuers
similar to the Trust Fund. The Trustee shall execute the Form 8-Ks pursuant to a
limited power of attorney from the Depositor which shall terminate upon written
notice from the Depositor or the termination of this Agreement. In connection
with the preparation and filing of such periodic reports, the Depositor and the
Master Servicer shall timely provide to the Trustee all material information
available to them that is required to be included in such reports and not known
to them to be in the possession of the Trustee and such other information as the
Trustee reasonably may request from either of them (including any certification
required pursuant to Section 3.02(a) of the Sarbanes-Oxley Act of 2002 and any
regulations promulgated thereunder (the "REQUIRED CERTIFICATIONS")) and
otherwise reasonably shall cooperate with the Trustee. The Depositor shall
execute the Form 10-Ks and the Required Certifications. The Trustee shall have
no responsibility for making any of the Required Certifications; provided,
however, that upon the request of the Master Servicer or the Depositor in
connection with the delivery of the Required Certifications on behalf of the
Trust Fund, the Trustee shall furnish to the Master Servicer or the Depositor,
as applicable, a certificate signed by an officer of the Trustee (the "TRUSTEE
CERTIFICATION"), which is attached as Exhibit O to this Agreement. The Trustee
shall indemnify and hold harmless the Master Servicer and the Depositor, their
respective officers and directors from and against any and all losses, claims,
expenses, damages or liabilities, as and when such losses, claims, expenses,
damages or liabilities are incurred, insofar as such losses, claims, expenses,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement of any material fact contained in the Trustee
Certification. The Trustee shall prepare the Form 10-K and provide such to the
Depositor by March 10th of each year, commencing in 2006. The Depositor shall
execute such Form 10-K upon its receipt and shall provide the original of such
executed Form 10-K to the Trustee no later than five (5) Business Days following
its receipt from the Trustee.

         Prior to January 30th of the first year in which the Trustee is able to
do so under applicable law, the Trustee shall file under the Exchange Act a Form
15D Suspension Notification with respect to the Trust Fund. The Trustee shall
have no liability with respect to any failure to properly prepare or file such
periodic reports resulting from or relating to the Trustee's inability or
failure to obtain any information not resulting from its own negligence or
willful misconduct.

         The Trustee and any director, officer, employee or agent of the Trustee
shall be indemnified by the Master Servicer against any loss, liability or
expense (including reasonable attorney's fees) incurred in connection with any
claim or legal action relating to the preparation of the Required Certification,
other than any loss, liability or expense incurred because of willful
misfeasance, bad faith or negligence in the performance of any of the Trustee's
duties under this Agreement or incurred by reason of any action of the Trustee
taken at the direction of the Certificateholders under this Agreement. This
indemnity shall survive the termination of this Agreement or the resignation or
removal of the Trustee under this Agreement.

         Section 8.13  [RESERVED]

         Section 8.14  [RESERVED]

         Section 8.15  ACCESS TO RECORDS OF TRUSTEE.

         The Trustee shall afford the Seller, the Depositor, the Master
Servicer, the NIM Insurer and each Certificateholder or Certificate Owner, upon
reasonable notice during normal business hours, access to all records maintained
by the Trustee in respect of its duties under this Agreement and access to
officers of the Trustee responsible for performing its duties. Upon request, the
Trustee shall furnish the Depositor, the Master Servicer, the NIM Insurer and
any requesting Certificateholder or Certificate Owner with its most recent
financial statements. The Trustee shall cooperate fully with the Seller, the
Master Servicer, the Depositor, the NIM Insurer and the Certificateholder or
Certificate Owner for review and copying any books, documents or records
requested with respect to the Trustee's duties under this Agreement. The Seller,
the Depositor, the Master Servicer and the Certificateholder or Certificate
Owner shall not have any responsibility or liability for any action for failure
to act by the Trustee and are not obligated to supervise the performance of the
Trustee under this Agreement or otherwise.

         Section 8.16  SUITS FOR ENFORCEMENT.

         If an Event of Default or other material default by the Master Servicer
or the Depositor under this Agreement occurs and is continuing, at the direction
of the Certificateholders comprising in the aggregate a Majority in Interest or
of the NIM Insurer, the Trustee shall proceed to protect and enforce its rights
and the rights of the Certificateholders or the NIM Insurer under this Agreement
by a suit, action or proceeding in equity or at law or otherwise, whether for
the specific performance of any covenant or agreement contained in this
Agreement or in aid of the execution of any power granted in this Agreement or
for the enforcement of any other legal, equitable or other remedy, as the
Trustee, being advised by counsel, and subject to the foregoing, shall deem most
effectual to protect and enforce any of the rights of the Trustee, the NIM
Insurer and the Certificateholders.

<PAGE>

                                   ARTICLE IX

                                   TERMINATION

         Section 9.01  TERMINATION UPON LIQUIDATION OR PURCHASE OF THE MORTGAGE
                       LOANS.

         Subject to Section 9.03, the obligations of the Depositor, the Master
Servicer and the Trustee created hereby with respect to the Trust Fund shall
terminate upon the earlier of

         (a) the purchase by the NIM Insurer or the Master Servicer of all
Mortgage Loans (and REO Properties) at the price equal to THE SUM OF:

                  (i) 100% of the Stated Principal Balance of each Mortgage Loan
         (other than for REO Property) PLUS one month's accrued interest thereon
         at the applicable Mortgage Rate less the Master Servicing Fee Rate,

                  (ii) the LESSER OF (x) the appraised value of any REO Property
         as determined by the higher of two appraisals completed by two
         independent appraisers selected by the Master Servicer at the expense
         of the Master Servicer AND (y) the Stated Principal Balance of each
         Mortgage Loan related to any REO Property, in each case PLUS accrued
         and unpaid interest thereon at the applicable Adjusted Net Mortgage
         Rate and

                  (iii) any costs and damages incurred by the Trust Fund in
         connection with any violation by each Mortgage Loan of any predatory or
         abusive lending law and

         (b) the later of

                  (i) the maturity or other liquidation (or any Advance with
         respect thereto) of the last Mortgage Loan remaining in the Trust Fund
         and the disposition of all REO Property and

                  (ii) the distribution to Certificateholders of all amounts
         required to be distributed to them pursuant to this Agreement. In no
         event shall the trusts created hereby continue beyond the earlier of
         the expiration of 21 years from the death of the survivor of the
         descendants of Joseph P. Kennedy, the late Ambassador of the United
         States to the Court of St. James's, living on the date hereof or the
         Latest Possible Maturity Date (as defined in the Preliminary
         Statement).

         The Master Servicer may repurchase all Mortgage Loans and REO
Properties pursuant to clause (a) above if the aggregate Stated Principal
Balance of the Mortgage Loans, at the time of the repurchase, is less than ten
(10) percent of the aggregate Cut-off Date Principal Balance of the Mortgage
Loans. If the Master Servicer is entitled to repurchase the Mortgage Loans
pursuant to this Section and fails to do so, the NIM Insurer may repurchase all
Mortgage Loans and REO Properties pursuant to clause (a) above after thirty (30)
days prior notice to the Master Servicer if the Master Servicer does not first
purchase them.

         Section 9.02  FINAL DISTRIBUTION ON THE CERTIFICATES.

         If on any Determination Date, the NIM Insurer or the Master Servicer
determines that there are no Outstanding Mortgage Loans and no other funds or
assets in the Trust Fund other than the funds in the Certificate Account, the
NIM Insurer or the Master Servicer shall direct the Trustee promptly to send a
final distribution notice to each Certificateholder. If the NIM Insurer or the
Master Servicer elects to terminate the Trust Fund pursuant to clause (a) of
Section 9.01, at least twenty (20) days before the date notice is to be mailed
to the affected Certificateholders, the Master Servicer shall notify the
Depositor and the Trustee of the date the Master Servicer intends to terminate
the Trust Fund and of the applicable repurchase price of the Mortgage Loans and
REO Properties.

         Notice of any termination of the Trust Fund, specifying the
Distribution Date on which Certificateholders may surrender their Certificates
for payment of the final distribution and cancellation, shall be given promptly
by the Trustee by letter to Certificateholders, mailed not earlier than the 10th
day and not later than the 15th day of the month next preceding the month of
such final distribution. Any such notice shall specify (a) the Distribution Date
upon which final distribution on the Certificates will be made upon presentation
and surrender of Certificates at the office therein designated, (b) the amount
of such final distribution, (c) the location of the office or agency at which
such presentation and surrender must be made and (d) that the Record Date
otherwise applicable to the Distribution Date is not applicable, distributions
being made only upon presentation and surrender of the Certificates at the
office therein specified. The Master Servicer will give such notice to each
Rating Agency at the time such notice is given to Certificateholders.

         If the notice is given, the Master Servicer shall cause all funds in
the Certificate Account to be remitted to the Trustee for deposit in the
Distribution Account on the Business Day before the applicable Distribution Date
in an amount equal to the final distribution in respect of the Certificates.
Upon such final deposit with respect to the Trust Fund and the receipt by the
Trustee of a Request for Release therefor, the Trustee shall promptly release to
the Master Servicer the Mortgage Files for the Mortgage Loans.

         Upon presentation and surrender of the Certificates, the Trustee shall
cause to be distributed to the Certificateholders of each Class, in each case on
the final Distribution Date and in the order stated in Section 4.02, in
proportion to their respective Percentage Interests, with respect to
Certificateholders of the same Class, an amount equal to (i) as to each Class of
Regular Certificates (except the Class C Certificate), its Certificate Balance
PLUS for each such Class accrued interest thereon in the case of an
interest-bearing Certificate and (ii) as to the Residual Certificates, any
amount remaining on deposit in the Distribution Account (other than the amounts
retained to meet claims) after application pursuant to clause (i) above. By
acceptance of the Residual Certificates, the holders of the Residual
Certificates agree, in connection with any termination hereunder, that their
rights to receive any amounts pursuant to clause (ii) in the immediately
preceding sentence hereby are assigned and transferred and, to the extent
received in respect of such termination, to pay any such amounts to the holders
of the Class C Certificates.

         If any affected Certificateholder does not surrender its Certificates
for cancellation within six (6) months after the date specified in the above
mentioned written notice, the Trustee shall give a second written notice to the
remaining Certificateholders to surrender their Certificates for cancellation
and receive the final distribution with respect thereto. If within six (6)
months after the second notice all the applicable Certificates shall not have
been surrendered for cancellation, the Trustee may take appropriate steps, or
may appoint an agent to take appropriate steps, to contact the remaining
Certificateholders concerning surrender of their Certificates, and the cost
thereof shall be paid out of the funds and other assets that remain a part of
the Trust Fund. If within one year after the second notice all Certificates
shall not have been surrendered for cancellation, the Class R Certificateholders
shall be entitled to all unclaimed funds and other assets of the Trust Fund that
remain subject hereto.

         Section 9.03  ADDITIONAL TERMINATION REQUIREMENTS.

         If the NIM Insurer or the Master Servicer exercises its purchase option
with respect to the Mortgage Loans as provided in Section 9.01, the Trust Fund
shall be terminated in accordance with the following additional requirements,
unless the Trustee has been supplied with an Opinion of Counsel, at the expense
of the Master Servicer, to the effect that the failure to comply with the
requirements of this Section 9.03 will not (i) result in the imposition of taxes
on "prohibited transactions" on any REMIC created hereunder as defined in
Section 860F of the Code or (ii) cause any REMIC created under this Agreement to
fail to qualify as a REMIC at any time that any Certificates are outstanding.

         The Trustee shall sell all of the assets of the Trust Fund to the NIM
Insurer or the Master Servicer, as applicable, and, within ninety (90) days of
the sale, shall distribute to the Certificateholders the proceeds of the sale in
complete liquidation of any REMIC created hereunder.

         The Trustee shall attach a statement to the final federal income tax
return for each of any REMIC created hereunder stating that pursuant to Treasury
Regulation Section 1.860F-1, the first day of the ninety (90) day liquidation
period for each the REMIC was the date on which the Trustee sold the assets of
the Trust Fund to the NIM Insurer or the Master Servicer.

<PAGE>

                                    ARTICLE X

                            MISCELLANEOUS PROVISIONS

         Section 10.01  AMENDMENT.

         This Agreement may be amended from time to time by the Depositor, the
Master Servicer, and the Trustee with the consent of the NIM Insurer and without
the consent of any of the Certificateholders:

         (i) to cure any ambiguity or mistake,

         (ii) to correct any defective provision herein or to supplement any
provision herein that may be inconsistent with any other provision herein,

         (iii) to conform this Agreement to the Prospectus Supplement,

         (iv) to add to the duties of the Depositor, the Seller, or the Master
Servicer,

         (v) to modify, alter, amend, add to or rescind any of the terms or
provisions contained in this Agreement to comply with any rules or regulations
promulgated by the Securities and Exchange Commission from time to time,

         (vi) to add any other provisions with respect to matters or questions
arising hereunder, or

         (vii) to modify, alter, amend, add to, or rescind any of the provisions
of this Agreement.

No action pursuant to clauses (iv), (vi) or (vii) above may, as evidenced by an
Opinion of Counsel (which Opinion of Counsel shall not be an expense of the
Trustee or the Trust Fund), adversely affect in any material respect the
interests of any Certificateholder. The amendment shall not be deemed to
adversely affect in any material respect the interests of the Certificateholders
if the Person requesting the amendment obtains a letter from each Rating Agency
stating that the amendment would not result in the downgrading or withdrawal of
the respective ratings then assigned to the Certificates. Any such letter in and
of itself will not represent a determination as to the materiality of any
amendment and will represent a determination only as to the credit issues
affecting any rating. Each party to this Agreement agrees that it will cooperate
with each other party in amending this Agreement pursuant to clause (v) above.

         The Trustee, the Depositor and the Master Servicer also may, at any
time and from time to time, amend this Agreement with the consent of the NIM
Insurer and without the consent of the Certificateholders, in order to modify,
eliminate or add to any of the provisions of this Agreement to the extent
necessary or helpful to:

                  (i) maintain the qualification of any REMIC created under this
         Agreement under the Code;

                  (ii) avoid or minimize the risk of the imposition of any tax
         on any REMIC created under this Agreement pursuant to the Code that
         would be a claim at any time before the final redemption of the
         Certificates; or

                  (iii) comply with any other requirements of the Code;

if the Trustee has been provided an Opinion of Counsel, which opinion shall be
an expense of the party requesting such opinion but in any case shall not be an
expense of the Trustee or the Trust Fund, to the effect that the action is
necessary or helpful for one of those purposes.

         This Agreement may also be amended from time to time by the Depositor,
the Master Servicer, and the Trustee with the consent of the NIM Insurer and the
Holders of Certificates evidencing Percentage Interests aggregating not less
than 662/3% of each Class of Certificates affected thereby for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Agreement or of modifying in any manner the rights of the
Holders of Certificates. No amendment shall:

                  (i) reduce in any manner the amount of, or delay the timing
         of, payments required to be distributed on any Certificate without the
         consent of the Holder of the Certificate;

                  (ii) adversely affect in any material respect the interests of
         the Holders of any Class of Certificates in a manner other than as
         described in (i), without the consent of the Holders of Certificates of
         the Class evidencing, as to the Class, Percentage Interests aggregating
         not less than 662/3%;

                  (iii) amend, modify, add to, rescind, or alter in any respect
         Section 10.13, notwithstanding any contrary provision of this
         Agreement, without the consent of the Holders of Certificates
         evidencing Percentage Interests aggregating not less than 662/3%, and
         for this purpose no Certificates held by the Seller, the Depositor, or
         any Affiliate of either of them shall be eligible to vote or be
         considered Outstanding; or

                  (iv) reduce the aforesaid percentages of Certificates the
         Holders of which are required to consent to any such amendment, without
         the consent of the Holders of all such Certificates then outstanding.

         Notwithstanding any contrary provision of this Agreement, the Trustee
shall not consent to any amendment to this Agreement unless (i) it shall have
first received an Opinion of Counsel satisfactory to the NIM Insurer, which
opinion shall not be an expense of the Trustee or the Trust Fund, to the effect
that the amendment will not cause the imposition of any tax on any REMIC or the
Certificateholders or cause any REMIC to fail to qualify as a REMIC at any time
that any Certificates are outstanding and (ii) because the Trust Fund is
required to be a Qualifying Special Purpose Entity (as that term is defined in
Statement of Financial Accounting Standards No. 140 ("SFAS 140")), in order for
the Seller to continue to account for the transfer of the Mortgage Loans under
this Agreement as a sale under SFAS 140, prior to the parties hereto entering
into such an amendment, the Trustee shall receive an Officer's Certificate,
which shall not be an expense of the Trustee or the Trust Fund, to the effect
that such amendment would not "significantly change" (within the meaning of SFAS
140) the permitted activities of the Trust Fund so as to cause the Trust Fund to
fail to qualify as a Qualifying Special Purpose Entity.

         Promptly after the execution of any amendment to this Agreement
requiring the consent of Certificateholders, the Trustee shall furnish written
notification of the substance or a copy of the amendment to each
Certificateholder and each Rating Agency.

         It shall not be necessary for the consent of Certificateholders under
this Section 10.01 to approve the particular form of any proposed amendment, but
it shall be sufficient if the consent approves its substance. The manner of
obtaining consents and of evidencing the authorization of their execution by
Certificateholders shall be subject to such reasonable regulations as the
Trustee may prescribe.

         Nothing in this Agreement shall require the Trustee to enter into an
amendment without receiving an Opinion of Counsel satisfactory to the NIM
Insurer (which Opinion shall not be an expense of the Trustee or the Trust
Fund), satisfactory to the Trustee that (i) the amendment is permitted by this
Agreement and all conditions precedent to the amendment have been satisfied; and
(ii) either (A) the amendment does not adversely affect in any material respect
the interests of any Certificateholder or (B) the conclusion in the preceding
clause (A) is not required to be reached pursuant to this Section 10.01.

         Section 10.02  RECORDATION OF AGREEMENT; COUNTERPARTS.

         This Agreement is subject to recordation in all appropriate public
offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are
situated, and in any other appropriate public recording office or elsewhere, the
recordation to be effected by the Master Servicer at its expense, but only upon
receipt of an Opinion of Counsel to the effect that the recordation materially
and beneficially affects the interests of the Certificateholders.

         For the purpose of facilitating the recordation of this Agreement as
herein provided and for other purposes, this Agreement may be executed
simultaneously in any number of counterparts, each of which counterparts shall
be an original, and all of which shall constitute but one instrument.

         Section 10.03  GOVERNING LAW.

         THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

         Section 10.04  INTENTION OF PARTIES.

         It is the express intent of the parties hereto that the conveyance (i)
of the Mortgage Loans by the Seller to the Depositor and (ii) of the Trust Fund
by the Depositor to the Trustee each be, and be construed as, an absolute sale
thereof. It is, further, not the intention of the parties that such conveyances
be deemed a pledge thereof. However, if, notwithstanding the intent of the
parties, the assets are held to be the property of the Seller or Depositor, as
the case may be, or if for any other reason this Agreement is held or deemed to
create a security interest in either such assets, then (i) this Agreement shall
be deemed to be a security agreement within the meaning of the Uniform
Commercial Code of the State of New York and (ii) the conveyances provided for
in this Agreement shall be deemed to be an assignment and a grant (i) by the
Seller to the Depositor or (ii) by the Depositor to the Trustee, for the benefit
of the Certificateholders, of a security interest in all of the assets
transferred, whether now owned or hereafter acquired.

         The Seller and the Depositor for the benefit of the NIM Insurer and the
Certificateholders shall, to the extent consistent with this Agreement, take
such actions as may be necessary to ensure that, if this Agreement were deemed
to create a security interest in the Trust Fund, such security interest would be
deemed to be a perfected security interest of first priority under applicable
law and will be maintained as such throughout the term of the Agreement. The
Depositor shall arrange for filing any Uniform Commercial Code continuation
statements in connection with any security interest granted or assigned to the
Trustee for the benefit of the Certificateholders.

         Section 10.05  NOTICES.

         (a) The Trustee shall promptly notify each Rating Agency of each of the
following of which it has actual knowledge:

                  1. Any material change or amendment to this Agreement;

                  2. The occurrence of any Event of Default that has not been
         cured;

                  3. The resignation or termination of the Master Servicer or
         the Trustee and the appointment of any successor;

                  4. The repurchase or substitution of Mortgage Loans pursuant
         to Section 2.03; and

                  5. The final payment to Certificateholders.

                  In addition, the Trustee shall promptly furnish to each Rating
         Agency copies of the following:

                  1. Each report to Certificateholders described in Section
         4.03;

                  2. Each annual statement as to compliance described in Section
         3.17;

                  3. Each annual independent public accountants' servicing
         report described in Section 3.18; and

                  4. Any notice of a purchase of a Mortgage Loan pursuant to
         Section 2.01, 2.02, 2.03, 2.05 or 3.12.

         (b) All directions, demands and notices hereunder shall be in writing
and be duly given when delivered to

                  (i) in the case of the Depositor, IndyMac ABS, Inc., 155 North
         Lake Avenue, Pasadena, California 91101, Attention: Capital Markets, or
         such other address as may be hereafter furnished to the NIM Insurer,
         the Master Servicer, and the Trustee by the Depositor;

                  (ii) in the case of the Master Servicer, IndyMac Bank, F.S.B.,
         155 North Lake Avenue, Pasadena, California 91101, Attention: Master
         Servicing, or such other address as may be hereafter furnished to the
         NIM Insurer, the Depositor, and the Trustee by the Master Servicer;

                  (iii) in the case of the Trustee to the Corporate Trust
         Office, Deutsche Bank National Trust Company, 1761 East St. Andrew
         Place, Santa Ana, California 92705-4934, Attention: Trust
         Administration IN05S2, Series INABS 2005-B, or such other address as
         the Trustee may hereafter furnish to the NIM Insurer, the Depositor,
         and Master Servicer; and

                  (iv) in the case of the NIM Insurer, to such address as each
         NIM Insurer may hereafter furnish to the Depositor, the Trustee or
         Master Servicer;

                  (v) in the case of each of the Rating Agencies, the address
         specified therefor in the definition corresponding to the name of such
         Rating Agency.

         Notices to Certificateholders shall be deemed given when mailed, first
class postage prepaid, to their respective addresses appearing in the
Certificate Register.

         Section 10.06  SEVERABILITY OF PROVISIONS.

         If any one or more of the provisions of this Agreement shall be for any
reason whatsoever held invalid, then those provisions shall be deemed severable
from the remaining provisions of this Agreement and shall in no way affect the
validity or enforceability of the other provisions of this Agreement or of the
Certificates or the rights of the Holders thereof.

         Section 10.07  ASSIGNMENT.

         Notwithstanding anything to the contrary contained herein, except as
provided in Section 6.02, this Agreement may not be assigned by the Master
Servicer without the prior written consent of the Trustee and Depositor.

         Section 10.08  LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS.

         The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the trust created hereby, nor entitle such
Certificateholder's legal representative or heirs to claim an accounting or to
take any action or commence any proceeding in any court for a petition or
winding up of the trust created hereby, or otherwise affect the rights and
obligations of the parties hereto or any of them.

         No Certificateholder shall have any right to vote (except as provided
herein) or in any manner otherwise control the operation and management of the
Trust Fund, or the obligations of the parties hereto, nor shall anything in this
Agreement or the Certificates be construed so as to constitute the
Certificateholders from time to time as partners or members of an association;
nor shall any Certificateholder be liable to any third party because of any
action taken by the parties to this Agreement pursuant to any provision hereof.

         No Certificateholder shall have any right by virtue or by availing
itself of any provisions of this Agreement to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Agreement,
unless such Holder previously shall have given to the Trustee a written notice
of an Event of Default and of the continuance thereof, as herein provided, and
unless the Holders of Certificates evidencing not less than 25% of the Voting
Rights evidenced by the Certificates shall also have made written request to the
Trustee to institute such action, suit, or proceeding in its own name as Trustee
hereunder and shall have offered to the Trustee such reasonable indemnity as it
may require against the costs, expenses and liabilities to be incurred therein
or thereby, and the Trustee, for sixty (60) days after its receipt of such
notice, request, and offer of indemnity shall have neglected or refused to
institute any such action, suit, or proceeding. Each Certificateholder expressly
covenants with every other Certificateholder and the Trustee that no one or more
Holders of Certificates shall have any right in any manner whatever by virtue or
by availing itself or themselves of any provisions of this Agreement to affect,
disturb or prejudice the rights of the Holders of any other of the Certificates,
or to obtain or seek to obtain priority over or preference to any other such
Holder or to enforce any right under this Agreement, except in the manner herein
provided and for the common benefit of all Certificateholders. For the
protection and enforcement of this Section 10.08, each Certificateholder and the
Trustee shall be entitled to any relief that can be given either at law or in
equity.

         Section 10.09  INSPECTION AND AUDIT RIGHTS.

         The Master Servicer agrees that on reasonable prior notice, it will
permit any representative of the Depositor, the NIM Insurer or the Trustee
during such Person's normal business hours, to examine all the books of account,
records, reports and other papers of such Person relating to the Mortgage Loans,
to make copies and extracts therefrom, to cause such books to be audited by
independent certified public accountants of the NIM Insurer or reasonably
acceptable to the NIM Insurer selected by the Depositor or the Trustee and to
discuss its affairs, finances and accounts relating to the Mortgage Loans with
its officers, employees and independent public accountants (and by this
provision the Master Servicer hereby authorizes said accountants to discuss with
such representative such affairs, finances and accounts), all at such reasonable
times and as often as may be reasonably requested. Any out-of-pocket expense
incident to the exercise by the Depositor, the NIM Insurer or the Trustee of any
right under this Section 10.09 shall be borne by the Master Servicer.

         Section 10.10  CERTIFICATES NONASSESSABLE AND FULLY PAID.

         It is the intention of the Depositor that Certificateholders shall not
be personally liable for obligations of the Trust Fund, that the interests in
the Trust Fund represented by the Certificates shall be nonassessable for any
reason whatsoever, and that the Certificates, upon due authentication thereof by
the Trustee pursuant to this Agreement, are and shall be deemed fully paid.

         Section 10.11  OFFICIAL RECORD.

         The Seller agrees that this Agreement is and shall remain at all times
before the time at which this Agreement terminates an official record of the
Seller as referred to in Section 13(e) of the Federal Deposit Insurance Act.

         Section 10.12  PROTECTION OF ASSETS.

         (a) Except for transactions and activities entered into in connection
with the securitization that is the subject of this Agreement, the trust created
by this Agreement is not authorized and has no power to:

                  (1) borrow money or issue debt;

                  (2) merge with another entity, reorganize, liquidate or sell
         assets; or

                  (3) engage in any business or activities.

         (b) Each party to this Agreement agrees that it will not file an
involuntary bankruptcy petition against the Trustee or the Trust Fund or
initiate any other form of insolvency proceeding until after the Certificates
have been paid in full. `

         Section 10.13  QUALIFYING SPECIAL PURPOSE ENTITY.

         Notwithstanding any contrary provision of this Agreement the Trust Fund
shall not engage in any activity or knowingly hold any property that would
disqualify the Trust Fund from being a qualifying special purpose entity under
generally accepted accounting principles.

         Section 10.14  RIGHTS OF NIM INSURER.

         (a) The rights of the NIM Insurer under this Agreement shall exist only
so long as either

         o        the NIM Notes certain payments on which are guaranteed by the
                  NIM Insurer remain outstanding or

         o        the NIM Insurer is owed amounts paid by it with respect to
                  that guaranty.

The rights of the NIM Insurer under this Agreement are exercisable by the NIM
Insurer only so long as no default by the NIM Insurer under its guaranty of
certain payments under the NIM Notes has occurred and is continuing. If the NIM
Insurer is the subject of any insolvency proceeding, the rights of the NIM
Insurer under this Agreement will be exercisable by the NIM Insurer only so long
as

         o        the obligations of the NIM Insurer under its guaranty of the
                  NIM Notes have not been disavowed and

         o        the Seller and the Trustee have received reasonable assurances
                  that the NIM Insurer will be able to satisfy its obligations
                  under its guaranty of the NIM Notes.

         (b) The NIM Insurer is a third party beneficiary of this Agreement to
the same extent as if it were a party to this Agreement, and may enforce any of
those rights under this Agreement.

         (c) A copy of any documents of any nature required by this Agreement to
be delivered by the Trustee, or to the Trustee or the Rating Agencies, shall in
each case at the same time also be delivered to the NIM Insurer. Any notices
required to be given by the Trustee, or to the Trustee or the Rating Agencies,
shall in each case at the same time also be given to the NIM Insurer.

         (d) Anything in this Agreement that is conditioned on not resulting in
the downgrading or withdrawal of the ratings then assigned to the Certificates
by the Rating Agencies shall also be conditioned on not resulting in the
downgrading or withdrawal of the ratings then assigned by the Rating Agencies to
the NIM Notes.

<PAGE>

         In Witness Whereof, the Depositor, the Trustee, and the Seller and
Master Servicer have caused their names to be signed hereto by their respective
officers thereunto duly authorized as of the day and year first above written.

                                           INDYMAC ABS, INC.,
                                             as Depositor

                                           By: /s/ Isaac Carrillo
                                               ---------------------------------
                                               Name: Isaac Carrillo
                                               Title: Vice President

                                           DEUTSCHE BANK NATIONAL TRUST COMPANY,
                                             as Trustee

                                           By: /s/ Jennifer Hermanfader
                                               ---------------------------------
                                               Name: Jennifer Hermanfader
                                               Title: Associate

                                           By: /s/ Brent Hoyler
                                               ---------------------------------
                                               Name: Brent Hoyler
                                               Title: Associate

                                           INDYMAC BANK, F.S.B.,
                                             as Seller and Master Servicer

                                           By: /s/ Isaac Carrillo
                                               ---------------------------------
                                               Name: Isaac Carrillo
                                               Title: Vice President

<PAGE>

                                                                      SCHEDULE I

                             Mortgage Loan Schedule

                                [Filed by Paper]

<PAGE>

                                                                     SCHEDULE II

              Home Equity Mortgage Loan Asset-Backed Certificates,

                               Series INABS 2005-B

          REPRESENTATIONS AND WARRANTIES OF THE SELLER/MASTER SERVICER

         Indy Mac Bank, F.S.B. ("INDYMAC") hereby makes the representations and
warranties in this Schedule II to the Depositor and the Trustee as of the
Closing Date. Capitalized terms used but not otherwise defined in this Schedule
II shall have the meanings ascribed thereto in the Pooling and Servicing
Agreement (the "POOLING AND SERVICING AGREEMENT") relating to the
above-referenced Series, among IndyMac, as Seller and Master Servicer, IndyMac
ABS, Inc., as Depositor, and Deutsche Bank National Trust Company, as Trustee.

         (1) IndyMac is duly organized as a federally insured savings bank and
         is validly existing and in good standing under the laws of the United
         States of America and is duly authorized and qualified to transact any
         business contemplated by the Pooling and Servicing Agreement to be
         conducted by IndyMac in any state in which a Mortgaged Property is
         located or is otherwise not required under applicable law to effect
         such qualification and, in any event, is in compliance with the doing
         business laws of any such state, to the extent necessary to ensure its
         ability to enforce each Mortgage Loan, to service the Mortgage Loans in
         accordance with the Pooling and Servicing Agreement and to perform any
         of its other obligations under the Pooling and Servicing Agreement and
         any Subsequent Transfer Instrument in accordance with the terms
         thereof.

         (2) IndyMac has the full corporate power and authority to sell and
         service each Mortgage Loan, and to execute, deliver and perform, and to
         enter into and consummate the transactions contemplated by the Pooling
         and Servicing Agreement and any Subsequent Transfer Instrument and has
         duly authorized by all necessary corporate action on the part of
         IndyMac the execution, delivery and performance of the Pooling and
         Servicing Agreement and any Subsequent Transfer Instrument; and each of
         the Pooling and Servicing Agreement and any Subsequent Transfer
         Instrument, assuming the due authorization, execution and delivery
         thereof by the other parties thereto, constitutes a legal, valid and
         binding obligation of IndyMac, enforceable against IndyMac in
         accordance with its terms, except that (a) the enforceability thereof
         may be limited by bankruptcy, insolvency, moratorium, receivership and
         other similar laws relating to creditors' rights generally and (b) the
         remedy of specific performance and injunctive and other forms of
         equitable relief may be subject to equitable defenses and to the
         discretion of the court before which any proceeding therefor may be
         brought.

         (3) The execution and delivery of the Pooling and Servicing Agreement
         and any Subsequent Transfer Instrument by IndyMac, the sale and
         servicing of the Mortgage Loans by IndyMac under the Pooling and
         Servicing Agreement, the consummation of any other of the transactions
         contemplated by the Pooling and Servicing Agreement and any Subsequent
         Transfer Instrument, and the fulfillment of or compliance with the
         terms of the Pooling and Servicing Agreement and any Subsequent
         Transfer Instrument are in the ordinary course of business of IndyMac
         and will not (A) result in a material breach of any term or provision
         of the charter or by-laws of IndyMac, (B) materially conflict with,
         result in a material breach, violation or acceleration of, or result in
         a material default under, any other material agreement or instrument to
         which IndyMac is a party or by which it may be bound, or (C) constitute
         a material violation of any statute, order or regulation applicable to
         IndyMac of any court, regulatory body, administrative agency or
         governmental body having jurisdiction over IndyMac (including the OTS,
         the FDIC or any other governmental entity having regulatory authority
         over IndyMac); and IndyMac is not in breach or violation of any
         material indenture or other material agreement or instrument, or in
         violation of any statute, order or regulation of any court, regulatory
         body, administrative agency or governmental body having jurisdiction
         over it (including the OTS, the FDIC or any other governmental entity
         having regulatory authority over IndyMac) which breach or violation may
         materially impair IndyMac's ability to perform or meet any of its
         obligations under the Pooling and Servicing Agreement and any
         Subsequent Transfer Instrument.

         (4) IndyMac is an approved servicer of conventional mortgage loans for
         FNMA or FHLMC or is a mortgagee approved by the Secretary of Housing
         and Urban Development pursuant to Sections 203 and 211 of the National
         Housing Act.

         (5) No litigation is pending or, to the best of IndyMac's knowledge,
         threatened against IndyMac that would prohibit the execution or
         delivery of, or performance under, the Pooling and Servicing Agreement
         and any Subsequent Transfer Instrument by IndyMac.

         (6) IndyMac is a member of MERS in good standing, and will comply in
         all material respects with the rules and procedures of MERS in
         connection with the servicing of the MERS Mortgage Loans for as long as
         such Mortgage Loans are registered with MERS.

<PAGE>

                                                                    SCHEDULE III

              Home Equity Mortgage Loan Asset-Backed Certificates,

                               Series INABS 2005-B

             REPRESENTATIONS AND WARRANTIES AS TO THE MORTGAGE LOANS

         IndyMac Bank, F.S.B. ("INDYMAC") hereby makes the representations and
warranties in this Schedule III to the Depositor and the Trustee, as of the
Closing Date, or if so specified herein, as of the applicable Cut-off Date or
date of origination of the Mortgage Loan (as applicable). Capitalized terms used
but not otherwise defined in this Schedule III shall have the meanings ascribed
thereto in the Pooling and Servicing Agreement (the "POOLING AND SERVICING
AGREEMENT") relating to the above-referenced Series, among IndyMac, as Seller
and Master Servicer, IndyMac ABS, Inc., as Depositor, and Deutsche Bank National
Trust Company, as Trustee.

                  (1) The information on Schedule I to the Pooling and Servicing
         Agreement with respect to each Mortgage Loan is true and correct in all
         material respects as of the Closing Date (or Subsequent Transfer Date,
         as applicable).

                  (2) As of the Closing Date (or Subsequent Transfer Date, as
         applicable), all regularly scheduled monthly payments due with respect
         to each Mortgage Loan up to and including the Due Date before the
         applicable Cut-off Date have been made; and as of the applicable
         Cut-off Date, no Mortgage Loan had a regularly scheduled monthly
         payment that was 30 or more days Delinquent during the twelve months
         before the applicable Cut-off Date.

                  (3) With respect to any Mortgage Loan, each Mortgage is a
         valid and enforceable first lien on the Mortgaged Property subject only
         to (a) the lien of nondelinquent current real property taxes and
         assessments and liens or interests arising under or as a result of any
         federal, state or local law, regulation or ordinance relating to
         hazardous wastes or hazardous substances and, if the related Mortgaged
         Property is a unit in a condominium project or planned unit
         development, any lien for common charges permitted by statute or
         homeowner association fees, (b) covenants, conditions and restrictions,
         rights of way, easements and other matters of public record as of the
         date of recording of such Mortgage, such exceptions appearing of record
         being generally acceptable to mortgage lending institutions in the area
         wherein the related Mortgaged Property is located or specifically
         reflected in the appraisal made in connection with the origination of
         the related Mortgage Loan, and (c) other matters to which like
         properties are commonly subject that do not materially interfere with
         the benefits of the security intended to be provided by such Mortgage.

                  (4) Immediately before the assignment of the Mortgage Loans to
         the Depositor, the Seller had good title to, and was the sole owner of,
         each Mortgage Loan free and clear of any pledge, lien, encumbrance or
         security interest and had full right and authority, subject to no
         interest or participation of, or agreement with, any other party, to
         sell and assign the same pursuant to the Pooling and Servicing
         Agreement.

                  (5) As of the date of origination of each Mortgage Loan, there
         was no delinquent tax or assessment lien against the related Mortgaged
         Property.

                  (6) There is no valid offset, defense or counterclaim to any
         Mortgage Note or Mortgage, including the obligation of the Mortgagor to
         pay the unpaid principal of or interest on such Mortgage Note.

                  (7) There are no mechanics' liens or claims for work, labor or
         material affecting any Mortgaged Property that are or may be a lien
         before, or equal with, the lien of such Mortgage, except those that are
         insured against by the title insurance policy referred to in item (11)
         below.

                  (8) No Mortgaged Property has been materially damaged by
         water, fire, earthquake, windstorm, flood, tornado or similar casualty
         (excluding casualty from the presence of hazardous wastes or hazardous
         substances, as to which the Seller makes no representation) so as to
         affect adversely the value of the related Mortgaged Property as
         security for the Mortgage Loan.

                  (9) Each Mortgage Loan and prepayment penalty associated with
         the Mortgage Loan at origination complied in all material respects with
         applicable federal, state and local laws, including usury, equal credit
         opportunity, real estate settlement procedures, truth-in-lending, Home
         Ownership and Equity Protection Act of 1994, applicable predatory and
         abusive lending and disclosure laws, or any noncompliance does not have
         a material adverse effect on the value of the related Mortgage Loan.

                  (10) As of the Closing Date (or Subsequent Transfer Date, as
         applicable), the Seller has not modified the Mortgage in any material
         respect (except that a Mortgage Loan may have been modified by a
         written instrument that has been recorded or submitted for recordation,
         if necessary, to protect the interests of the Certificateholders and
         that has been delivered to the Trustee); satisfied, cancelled or
         subordinated such Mortgage in whole or in part; released the related
         Mortgaged Property in whole or in part from the lien of such Mortgage;
         or executed any instrument of release, cancellation, modification or
         satisfaction with respect thereto.

                  (11) A lender's policy of title insurance together with a
         condominium endorsement and extended coverage endorsement, if
         applicable, in an amount at least equal to the Cut-off Date Principal
         Balance or Subsequent Cut-off Date Principal Balance, as applicable, of
         each Mortgage Loan or a commitment (binder) to issue the same was
         effective on the date of the origination of each Mortgage Loan, each
         such policy is valid and remains in full force and effect.

                  (12) Each Mortgage Loan was originated (within the meaning of
         Section 3(a)(41) of the Exchange Act) by an entity that satisfied at
         the time of origination the requirements of Section 3(a)(41) of the
         Exchange Act.

                  (13) To the best of the Seller's knowledge, all of the
         improvements that were included for the purpose of determining the
         Appraised Value of the Mortgaged Property lie wholly within the
         boundaries and building restriction lines of such property, and no
         improvements on adjoining properties encroach upon the Mortgaged
         Property, unless such failure to be wholly within such boundaries and
         restriction lines or such encroachment, as the case may be, does not
         have a material effect on the value of the Mortgaged Property.

                  (14) To the best of the Seller's knowledge, as of the date of
         origination of each Mortgage Loan, no improvement located on or being
         part of the Mortgaged Property is in violation of any applicable zoning
         law or regulation unless such violation would not have a material
         adverse effect on the value of the related Mortgaged Property. To the
         best of the Seller's knowledge, all inspections, licenses and
         certificates required to be made or issued with respect to all occupied
         portions of the Mortgaged Property and, with respect to the use and
         occupancy of the same, including certificates of occupancy and fire
         underwriting certificates, have been made or obtained from the
         appropriate authorities, unless the lack thereof would not have a
         material adverse effect on the value of the Mortgaged Property.

                  (15) The Mortgage Note and the related Mortgage are genuine,
         and each is the legal, valid and binding obligation of the maker
         thereof, enforceable in accordance with its terms and under applicable
         law.

                  (16) The proceeds of the Mortgage Loan have been fully
         disbursed and there is no requirement for future advances thereunder.

                  (17) The related Mortgage contains customary and enforceable
         provisions that render the rights and remedies of the holder thereof
         adequate for the realization against the Mortgaged Property of the
         benefits of the security, including, (i) in the case of a Mortgage
         designated as a deed of trust, by trustee's sale, and (ii) otherwise by
         judicial foreclosure.

                  (18) With respect to each Mortgage constituting a deed of
         trust, a trustee, duly qualified under applicable law to serve as such,
         has been properly designated and currently so serves and is named in
         such Mortgage, and no fees or expenses are or will become payable by
         the Certificateholders to the trustee under the deed of trust, except
         in connection with a trustee's sale after default by the Mortgagor.

                  (19) At the applicable Cut-off Date, the improvements upon
         each Mortgaged Property are covered by a valid and existing hazard
         insurance policy with a generally acceptable carrier that provides for
         fire and extended coverage and coverage for such other hazards as are
         customarily required by institutional single family mortgage lenders in
         the area where the Mortgaged Property is located, and the Seller has
         received no notice that any premiums due and payable thereon have not
         been paid; the Mortgage obligates the Mortgagor thereunder to maintain
         all such insurance including flood insurance at the Mortgagor's cost
         and expense. Anything to the contrary in this item (19)
         notwithstanding, no breach of this item (19) shall be deemed to give
         rise to any obligation of the Seller to repurchase or substitute for
         such affected Mortgage Loan or Loans so long as the Master Servicer
         maintains a blanket policy pursuant to the second paragraph of Section
         3.10(a) of the Pooling and Servicing Agreement.

                  (20) If at the time of origination of each Mortgage Loan, the
         related Mortgaged Property was in an area then identified in the
         Federal Register by the Federal Emergency Management Agency as having
         special flood hazards, a flood insurance policy in a form meeting the
         then-current requirements of the Flood Insurance Administration is in
         effect with respect to the Mortgaged Property with a generally
         acceptable carrier.

                  (21) To the best of the Seller's knowledge, there is no
         proceeding pending or threatened for the total or partial condemnation
         of any Mortgaged Property, nor is such a proceeding currently
         occurring.

                  (22) To the best of the Seller's knowledge, there is no
         material event that, with the passage of time or with notice and the
         expiration of any grace or cure period, would constitute a material
         non-monetary default, breach, violation or event of acceleration under
         the Mortgage or the related Mortgage Note; and the Seller has not
         waived any material non-monetary default, breach, violation or event of
         acceleration.

                  (23) Each Mortgage File contains an Appraisal Form 1004 of the
         related Mortgaged Property.

                  (24) Any leasehold estate securing a Mortgage Loan has a
         stated term at least as long as the term of the related Mortgage Loan.

                  (25) Each Mortgage Loan was selected from among the
         outstanding one- to four-family mortgage loans in the Seller's mortgage
         portfolio at the Closing Date (or Subsequent Transfer Date, as
         applicable) as to which the representations and warranties made with
         respect to the Mortgage Loans in this Schedule III can be made. No such
         selection was made in a manner intended to adversely affect the
         interests of the Certificateholders.

                  (26) None of the Mortgage Loans in Loan Group I and none of
         the Mortgage Loans in Loan Group II are cooperative loans.

                  (27)  [RESERVED.]

                  (28)  [RESERVED.]

                  (29) No Mortgage Loan is a High Cost Loan or Covered Loan, as
         applicable (as such terms are defined in the then-current version of
         Standard & Poor's LEVELS(R) Glossary, which is now Version 5.6(b)
         Revised, Appendix E) and no Mortgage Loan originated on or after Oct.
         1, 2002 through March 6, 2003 is governed by the Georgia Fair Lending
         Act.

                  (30) No Mortgage Loan is a "High-Cost Home Loan" as defined in
         any of the following statutes: the Georgia Fair Lending Act, as amended
         (the "Georgia Act"), the New York Banking Law 6-1, the Arkansas Home
         Loan Protection Act effective July 16, 2003 (Act 1340 of 2003), the
         Kentucky high-cost home loan statute effective June 24, 2003 (Ky. Rev.
         Stat. Section 360.100), the New Jersey Home Ownership Act effective
         November 27, 2003 (N.J.S.A. 46:10B-22 et seq.), or the New Mexico Home
         Loan Protection Act effective January 1, 2004 (N.M. Stat. Ann ss.ss.
         58-21A-1 et seq.). No Mortgage Loan secured by owner occupied real
         property or an owner occupied manufactured home located in the state of
         Georgia was originated (or modified) on or after October 1, 2002
         through and including March 6, 2003. No Mortgage Loan is a "High-Risk
         Home Loan" as defined in the Illinois High-Risk Home Loan Act effective
         January 1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.).

                  (31) None of the Mortgage Loans is a "high cost" loan,
         "covered" loan or any other similarly designated loan as defined under
         any state, local or federal law, as defined by applicable predatory and
         abusive lending laws.

                  (32) None of the Mortgage Loans that are secured by property
         located in the State of Illinois are in violation of the provisions of
         the Illinois Interest Act.

                  (33) Each Mortgage Loan has been underwritten and serviced
         substantially in accordance with the Seller's guidelines, subject to
         such variances as the Seller has approved.

                  (34) No proceeds from any Mortgage Loan underlying the
         Certificates were used to finance single-premium credit insurance
         policies.

                  (35) No Mortgage Loan is subject to the requirements of the
         Home Ownership and Equity Protection Act of 1994 and no mortgage loan
         is in violation of any comparable state law.

                  (36) With respect to each Mortgage Loan in Loan Group I, each
         Mortgage Loan had a principal balance at origination that conformed to
         Fannie Mae and Freddie Mac guidelines.

                  (37) The Master Servicer has fully furnished, in accordance
         with the Fair Credit Reporting Act and its implementing regulations,
         accurate and complete information (i.e., favorable and unfavorable) on
         the credit files for the related Mortgagor for each Mortgage Loan to
         Equifax, Experian and Trans Union Credit Information Company on a
         monthly basis. (38) With respect to each Mortgage Loan in Loan Group I,
         no sub-prime Mortgage Loan originated on or after October 1, 2002 will
         impose a prepayment premium for a term in excess of three years. Any
         such sub-prime Mortgage Loans originated prior to such date, and any
         non-sub-prime Mortgage Loans, will not impose prepayment penalties in
         excess of five years.

                  (39) With respect to each Mortgage Loan in Loan Group I
         originated on or after August 1, 2004 and underlying the Certificates,
         neither the related Mortgage nor the related Mortgage Note requires the
         Mortgagors to submit to arbitration to resolve any dispute arising out
         of or relating in any way to the related mortgage loan transaction.

<PAGE>

                                                                       EXHIBIT A

                  FORM OF CLASS A AND SUBORDINATED CERTIFICATES

         [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE").

         [THIS CERTIFICATE SHALL BE SUBJECT TO THE RESTRICTIONS ON TRANSFER SET
FORTH IN SECTION 5.02(b) OF THE POOLING AND SERVICING AGREEMENT.]

<PAGE>

Certificate No.                         :            [ ]

Cut-off Date                            :            June 1, 2005

First Distribution Date                 :            July 25, 2005
Initial Certificate Balance
of this Certificate
("Denomination")                        :            $[__]

Initial Certificate Balances
of all Certificates
of this Class                           :            $[__]

CUSIP                                   :            [_______]

<PAGE>

                                INDYMAC ABS, INC.

                  Home Equity Mortgage Loan Asset-Backed Trust
    Home Equity Mortgage Loan Asset-Backed Certificates, Series INABS 2005-B
                                    Class [ ]

         evidencing a percentage interest in the distributions allocable to the
         Certificates of the above-referenced Class.

         Principal in respect of this Certificate is distributable monthly as
stated herein. Accordingly, the Certificate Balance at any time may be less than
the Certificate Balance as set forth herein. This Certificate does not evidence
an obligation of, or an interest in, and is not guaranteed by the Depositor, the
Seller, the Master Servicer or the Trustee referred to below or any of their
respective affiliates. Neither this Certificate nor the Mortgage Loans are
guaranteed or insured by any governmental agency or instrumentality.

         This certifies that [___________] is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the aggregate of the Denominations of all
Certificates of the Class to which this Certificate belongs) in certain monthly
distributions pursuant to a Pooling and Servicing Agreement dated as of the
Cut-off Date specified above (the "Agreement") among IndyMac ABS, Inc., as
depositor (the "Depositor"), IndyMac Bank, F.S.B., as seller (in such capacity,
the "Seller") and as master servicer (in such capacity, the "Master Servicer"),
and Deutsche Bank National Trust Company, as trustee (the "Trustee"). To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound.

         [This Certificate shall be subject to the restrictions set forth in
Section 5.02(b) of the Agreement.]

         Reference is hereby made to the further provisions of this 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 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 Trustee.

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  ________, 2005

                                           DEUTSCHE BANK NATIONAL TRUST COMPANY,
                                              not in its individual capacity,
                                              but solely as Trustee

                                           By:
                                               ---------------------------------

Countersigned:

By:
    -------------------------------------
    Authorized Signatory of
    DEUTSCHE BANK NATIONAL TRUST COMPANY,
    not in its individual capacity,
    but solely as Trustee

<PAGE>

                                                                       EXHIBIT B

                           FORM OF CLASS P CERTIFICATE

         NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED
UNLESS THE PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN
ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE").

         SUBJECT TO THE PROVISIONS OF SECTION 5.02(b) OF THE AGREEMENT, NEITHER
THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE EFFECT
THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT
TO SECTION 4975 OF THE CODE, AND IS NOT INVESTING ON BEHALF OF OR WITH ASSETS OF
SUCH A PLAN, OR, IF THE CERTIFICATE HAS BEEN THE SUBJECT OF AN ERISA-QUALIFYING
UNDERWRITING, A REPRESENTATION IN ACCORDANCE WITH THE PROVISIONS OF THE
AGREEMENT REFERRED TO HEREIN, OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. NOTWITHSTANDING ANYTHING ELSE TO
THE CONTRARY HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF
OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE
REPRESENTATION LETTER OR THE OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE AS
DESCRIBED ABOVE SHALL BE VOID AND OF NO EFFECT.

<PAGE>

Certificate No.                         :            [ ]

Cut-off Date                            :            June 1, 2005

First Distribution Date                 :            July 25, 2005

Percentage Interest
of this Certificate
("Denomination")                        :            [ ]%

CUSIP                                   :            [ ]

<PAGE>

                                INDYMAC ABS, INC.
                  Home Equity Mortgage Loan Asset-Backed Trust,
    Home Equity Mortgage Loan Asset-Backed Certificates, Series INABS 2005-B
                                     Class P

         evidencing a percentage interest in the distributions allocable to the
         Certificates of the above-referenced Class payable solely from
         Prepayment Charges.

         Distributions in respect of this Certificate are distributable monthly
as set forth herein. This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor, the Seller, the Master
Servicer or the Trustee referred to below or any of their respective affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

         This certifies that [_________] is the registered owner of the
Percentage Interest evidenced by this Certificate (obtained by dividing the
Denomination of this Certificate by the aggregate of the Denominations of all
Certificates of the Class to which this Certificate belongs) in certain monthly
distributions pursuant to a Pooling and Servicing Agreement dated as of the
Cut-off Date specified above (the "Agreement") among IndyMac ABS, Inc., as
depositor (the "Depositor"), IndyMac Bank, F.S.B., as seller (in such capacity,
the "Seller") and as master servicer (in such capacity, the "Master Servicer"),
and Deutsche Bank National Trust Company, as trustee (the "Trustee"). To the
extent not defined herein, the capitalized terms used herein have the meanings
assigned in the Agreement. This Certificate is issued under and is subject to
the terms, provisions and conditions of the Agreement, to which Agreement the
Holder of this Certificate by virtue of the acceptance hereof assents and by
which such Holder is bound. This Certificate represents an interest in the
Trust, but does not represent an interest in any REMIC.

         This Certificate does not have a Certificate Balance or Pass-Through
Rate and will be entitled to distributions only to the extent set forth in the
Agreement and solely payable from Prepayment Charges. In addition, any
distribution of the proceeds of any remaining assets of the Trust will be made
only upon presentment and surrender of this Certificate at the office or agency
maintained by the Trustee.

         No transfer of a Certificate of this Class shall be made unless such
disposition is exempt from the registration requirements of the Securities Act
of 1933, as amended (the "1933 Act"), and any applicable state securities laws
or is made in accordance with the 1933 Act and such laws. In the event of any
such transfer, subject to the provisions in Section 5.02(b) of the Agreement,
the Trustee shall require the transferor to execute a transferor certificate (in
substantially the form attached to the Pooling and Servicing Agreement) and
deliver either (i) an Investment Letter or the Rule 144A Letter, in either case
substantially in the form attached to the Agreement, or (ii) a written Opinion
of Counsel to the Trustee that such transfer may be made pursuant to an
exemption, describing the applicable exemption and the basis therefor, from the
1933 Act or is being made pursuant to the 1933 Act, which Opinion of Counsel
shall be an expense of the transferor.

         Subject to the provisions in Section 5.02(b) of the Agreement, no
transfer of a Certificate of this Class shall be made unless the Trustee shall
have received either (i) a representation letter from the transferee of such
Certificate, acceptable to and in form and substance satisfactory to the
Trustee, to the effect that (x) such transferee is not an employee benefit plan
subject to Section 406 of ERISA or Section 4975 of the Code, nor a person acting
on behalf of any such plan, which representation letter shall not be an expense
of the Trustee or (y) if the Certificate has been the subject of an
ERISA-Qualifying Underwriting, a representation that the transferee is an
insurance company which is acquiring such Certificate with funds contained in an
"insurance company general account" (as such term is defined in Section V(e) of
Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")) and that the
purchase and holding of such Certificate satisfy the requirements for exemptive
relief under PTCE 95-60, or (ii) in the case of a Certificate presented for
registration in the name of an employee benefit plan subject to ERISA, or a plan
or arrangement subject to Section 4975 of the Code (or comparable provisions of
any subsequent enactments), or a trustee of any such plan or any other person
acting on behalf of any such plan or arrangement or using such plan's or
arrangement's assets, an Opinion of Counsel satisfactory to the Trustee, the NIM
Insurer and the Master Servicer, which Opinion of Counsel shall not be an
expense of the Trustee, the NIM Insurer, the Master Servicer or the Trust Fund,
addressed to the Trustee, to the effect that the purchase or holding of such
Certificate will not result in a nonexempt prohibited transaction under ERISA or
Section 4975 of the Code and will not subject the Trustee or the Master Servicer
to any obligation in addition to those expressly undertaken in this Agreement or
to any liability.

         Reference is hereby made to the further provisions of this 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 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 Trustee.

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  _________, 2005

                                            DEUTSCHE BANK NATIONAL TRUST COMPANY
                                              not in its individual capacity,
                                              but solely as Trustee

                                            By:
                                                --------------------------------

Countersigned:

By:
    ---------------------------------------
       Authorized Signatory of
       Deutsche Bank National Trust Company
         not in its individual capacity,
         but solely as Trustee

<PAGE>

                                                                       EXHIBIT C

                           FORM OF CLASS R CERTIFICATE

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"RESIDUAL INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE").

         NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED
UNLESS THE PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN
ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

         SUBJECT TO THE PROVISIONS OF SECTION 5.02(b) OF THE AGREEMENT, NEITHER
THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE EFFECT
THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT
TO SECTION 4975 OF THE CODE OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. IN THE EVENT THAT SUCH
REPRESENTATION IS VIOLATED, OR ANY ATTEMPT TO TRANSFER TO A PLAN OR ARRANGEMENT
SUBJECT TO SECTION 406 OF ERISA OR A PLAN SUBJECT TO SECTION 4975 OF THE CODE,
OR A PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS
OF ANY SUCH PLAN OR ARRANGEMENT, WITHOUT SUCH OPINION OF COUNSEL, SUCH ATTEMPTED
TRANSFER OR ACQUISITION SHALL BE VOID AND OF NO EFFECT.

<PAGE>

Certificate No.                         :            [ ]

Cut-off Date                            :            June 1, 2005

Initial Certificate Balance
of this Certificate
("Denomination")                        :            $[__________]

Initial Certificate Balances
of all Certificates of
this Class                              :            $[__________]

CUSIP                                   :            [___________]

<PAGE>

                                INDYMAC ABS, INC.
                  Home Equity Mortgage Loan Asset-Backed Trust,
    Home Equity Mortgage Loan Asset-Backed Certificates, Series INABS 2005-B
                                     Class R

         evidencing the distributions allocable to the Class R Certificates with
         respect to a Trust Fund consisting primarily of a pool of fixed-rate
         and adjustable-rate conventional loans (the "Mortgage Loans") secured
         by first liens on one- to four-family residential properties IndyMac
         ABS, Inc., as Depositor

         Principal in respect of this Certificate is distributable monthly as
set forth herein. Accordingly, the Certificate Balance at any time may be less
than the Certificate Balance as set forth herein. This Certificate does not
evidence an obligation of, or an interest in, and is not guaranteed by the
Depositor, the Seller, the Master Servicer or the Trustee referred to below or
any of their respective affiliates. Neither this Certificate nor the Mortgage
Loans are guaranteed or insured by any governmental agency or instrumentality.

         This certifies that [___] is the registered owner of the Percentage
Interest (obtained by dividing the Denomination of this Certificate by the
aggregate of the Denominations of all Certificates of the Class to which this
Certificate belongs) in certain monthly distributions pursuant to a Pooling and
Servicing Agreement dated as of the Cut-off Date specified above (the
"Agreement") among IndyMac ABS, Inc., as depositor (the "Depositor"), IndyMac
Bank, F.S.B., as seller (in such capacity, the "Seller") and as master servicer
(in such capacity, the "Master Servicer"), and Deutsche Bank National Trust
Company, as trustee (the "Trustee"). To the extent not defined herein, the
capitalized terms used herein have the meanings assigned in the Agreement. This
Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Certificate
by virtue of the acceptance hereof assents and by which such Holder is bound.

         Any distribution of the proceeds of any remaining assets of the Trust
Fund will be made only upon presentment and surrender of this Class R
Certificate at the office or agency maintained by the Trustee in New York, New
York.

         Subject to the provisions in Section 5.02(b) of the Agreement, no
transfer of a Class R Certificate shall be made unless the Trustee shall have
received either (i) a representation letter from the transferee of such
Certificate, acceptable to and in form and substance satisfactory to the
Trustee, to the effect that such transferee is not an employee benefit plan or
arrangement subject to Section 406 of ERISA, or a plan or arrangement subject to
Section 4975 of the Code or a person acting on behalf of any such plan or
arrangement or using the assets of any such plan or arrangement to effect such
transfer, which representation letter shall not be an expense of the Trustee,
the Master Servicer or the Trust Fund or (ii) an Opinion of Counsel satisfactory
to the Trustee, the NIM Insurer and the Master Servicer to the effect that the
purchase or holding of such Class R Certificate will not result in a non-exempt
prohibited transaction under ERISA or Section 4975 of the Code and will not
subject the Trustee, the NIM Insurer or the Master Servicer to any obligation in
addition to those expressly undertaken in the Agreement or to any liability,
which Opinion of Counsel shall not be an expense of the Trustee, the NIM
Insurer, the Master Servicer or the Trust Fund. In the event that such
representation is violated, or any attempt to transfer to a plan or arrangement
subject to Section 406 of ERISA or a plan subject to Section 4975 of the Code,
or a person acting on behalf of any such plan or arrangement or using the assets
of any such plan or arrangement, without such Opinion of Counsel, such attempted
transfer or acquisition shall be void and of no effect.

         Each Holder of this Class R Certificate shall be deemed by the
acceptance or acquisition an Ownership Interest in this Class R Certificate to
have agreed to be bound by the following provisions, and the rights of each
Person acquiring any Ownership Interest in this Class R Certificate are
expressly subject to the following provisions: (i) each Person holding or
acquiring any Ownership Interest in this Class R Certificate shall be a
Permitted Transferee and shall promptly notify the Trustee of any change or
impending change in its status as a Permitted Transferee, (ii) no Ownership
Interest in this Class R Certificate may be registered on the Closing Date or
thereafter transferred, and the Trustee shall not register the Transfer of this
Certificate unless, in addition to the certificates required to be delivered to
the Trustee under Section 5.02(b) of the Agreement, the Trustee shall have been
furnished with a Transfer Affidavit of the initial owner or the proposed
transferee in the form attached as Exhibit I to the Agreement (subject to the
limitations with respect thereto as set forth in Section 5.02(b) of the
Agreement), (iii) each Person holding or acquiring any Ownership Interest in
this Class R Certificate shall agree (A) to obtain a Transfer Affidavit from any
other Person to whom such Person attempts to Transfer its Ownership Interest
this Class R Certificate (subject to the limitations with respect thereto as set
forth in Section 5.02(b) of the Agreement), (B) to obtain a Transfer Affidavit
from any Person for whom such Person is acting as nominee, trustee or agent in
connection with any Transfer of this Class R Certificate (subject to the
limitations with respect thereto as set forth in Section 5.02(b) of the
Agreement) and (C) not to Transfer the Ownership Interest in this Class R
Certificate or to cause the Transfer of the Ownership Interest in this Class R
Certificate to any other Person if it has actual knowledge that such Person is
not a Permitted Transferee and (iv) any attempted or purported Transfer of the
Ownership Interest in this Class R Certificate in violation of the provisions
herein shall be absolutely null and void and shall vest no rights in the
purported Transferee.

         Reference is hereby made to the further provisions of this 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 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 Trustee.

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  _________, 2005

                                            DEUTSCHE BANK NATIONAL TRUST COMPANY
                                               not in its individual capacity,
                                               but solely as Trustee

                                            By:
                                                --------------------------------

Countersigned:

By:
    --------------------------------------
      Authorized Signatory of
      DEUTSCHE BANK NATIONAL TRUST COMPANY
        not in its individual capacity,
        but solely as Trustee

<PAGE>

                                                                       EXHIBIT D

                           FORM OF CLASS C CERTIFICATE

         SOLELY FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A
"REGULAR INTEREST" IN A "REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE
TERMS ARE DEFINED, RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE "CODE").

         NEITHER THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED
UNLESS THE PROPOSED TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN
ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

         SUBJECT TO THE PROVISIONS IN SECTION 5.02(b) OF THE AGREEMENT, NEITHER
THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE EFFECT
THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR A PLAN SUBJECT
TO SECTION 4975 OF THE CODE OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE
PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN. IN THE EVENT THAT SUCH
REPRESENTATION IS VIOLATED, OR ANY ATTEMPT TO TRANSFER TO A PLAN OR ARRANGEMENT
SUBJECT TO SECTION 406 OF ERISA OR A PLAN SUBJECT TO SECTION 4975 OF THE CODE,
OR A PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR ARRANGEMENT OR USING THE ASSETS
OF ANY SUCH PLAN OR ARRANGEMENT, WITHOUT SUCH OPINION OF COUNSEL, SUCH ATTEMPTED
TRANSFER OR ACQUISITION SHALL BE VOID AND OF NO EFFECT.

<PAGE>

Certificate No.                         :            [ ]

Cut-off Date                            :            June 1, 2005

First Distribution Date                 :            July 25, 2005
Percentage Interest
of this Certificate

("Denomination")                        :            [ ]%

CUSIP                                   :

<PAGE>

                                INDYMAC ABS, INC.
                  Home Equity Mortgage Loan Asset-Backed Trust,
    Home Equity Mortgage Loan Asset-Backed Certificates, Series INABS 2005-B
                                     Class C

         evidencing a percentage interest in the distributions allocable to the
         Certificates of the above-referenced Class.

         Distributions in respect of this Certificate are distributable monthly
as set forth herein. This Certificate does not evidence an obligation of, or an
interest in, and is not guaranteed by the Depositor, the Seller, the Master
Servicer or the Trustee referred to below or any of their respective affiliates.
Neither this Certificate nor the Mortgage Loans are guaranteed or insured by any
governmental agency or instrumentality.

         This certifies that [______] is the registered owner of the Percentage
Interest evidenced by this Certificate (obtained by dividing the Denomination of
this Certificate by the aggregate of the Denominations of all Certificates of
the Class to which this Certificate belongs) in certain monthly distributions
pursuant to a Pooling and Servicing Agreement dated as of the Cut-off Date
specified above (the "Agreement") among IndyMac ABS, Inc., as depositor (the
"Depositor"), IndyMac Bank, F.S.B., as seller (in such capacity, the "Seller")
and as master servicer (in such capacity, the "Master Servicer"), and Deutsche
Bank National Trust Company, as trustee (the "Trustee"). To the extent not
defined herein, the capitalized terms used herein have the meanings assigned in
the Agreement. This Certificate is issued under and is subject to the terms,
provisions and conditions of the Agreement, to which Agreement the Holder of
this Certificate by virtue of the acceptance hereof assents and by which such
Holder is bound.

         This Certificate does not have a Certificate Balance or Pass-Through
Rate and will be entitled to distributions only to the extent set forth in the
Agreement. In addition, any distribution of the proceeds of any remaining assets
of the Trust will be made only upon presentment and surrender of this
Certificate at the office or agency maintained by the Trustee.

         No transfer of a Certificate of this Class shall be made unless such
disposition is exempt from the registration requirements of the Securities Act
of 1933, as amended (the "1933 Act"), and any applicable state securities laws
or is made in accordance with the 1933 Act and such laws. In the event of any
such transfer, subject to the provisions in Section 5.02(b) of the Agreement,
the Trustee shall require the transferor to execute a transferor certificate (in
substantially the form attached to the Pooling and Servicing Agreement) and
deliver either (i) an Investment Letter or the Rule 144A Letter, in either case
substantially in the form attached to the Agreement, or (ii) a written Opinion
of Counsel to the Trustee that such transfer may be made pursuant to an
exemption, describing the applicable exemption and the basis therefor, from the
1933 Act or is being made pursuant to the 1933 Act, which Opinion of Counsel
shall be an expense of the transferor.

         Subject to the provisions in Section 5.02(b) of the Agreement, no
transfer of a Certificate of this Class shall be made unless the Trustee shall
have received either (i) a representation letter from the transferee of such
Certificate, acceptable to and in form and substance satisfactory to the
Trustee, to the effect that such transferee is not an employee benefit plan or
other benefit plan or arrangement subject to Section 406 of ERISA or Section
4975 of the Code, or a person acting on behalf of any such plan or investing
plan assets of any such plan, which representation letter shall not be an
expense of the Trustee, or (ii) in the case of a Certificate presented for
registration in the name of an employee benefit plan subject to ERISA, or a plan
or arrangement subject to Section 4975 of the Code (or comparable provisions of
any subsequent enactments), or a trustee of any such plan or any other person
acting on behalf of any such plan or arrangement or using such plan's or
arrangement's assets, an Opinion of Counsel satisfactory to the Trustee, the NIM
Insurer and the Master Servicer, which Opinion of Counsel shall not be an
expense of the Trustee, the NIM Insurer, the Master Servicer or the Trust Fund,
addressed to the Trustee, to the effect that the purchase or holding of such
Certificate will not result in a nonexempt prohibited transaction under ERISA or
Section 4975 of the Code and will not subject the Trustee, the NIM Insurer or
the Master Servicer to any obligation in addition to those expressly undertaken
in this Agreement or to any liability.

         Reference is hereby made to the further provisions of this 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 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 Trustee.

<PAGE>

         IN WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
executed.

Dated:  _________, 2005

                                            DEUTSCHE BANK NATIONAL TRUST COMPANY
                                            not in its individual capacity,
                                            but solely as Trustee

                                            By:
                                                --------------------------------

Countersigned:

By:
    --------------------------------------
      Authorized Signatory of
      DEUTSCHE BANK NATIONAL TRUST COMPANY
         not in its individual capacity,
         but solely as Trustee

<PAGE>

                                                                       EXHIBIT E

                                   [Reserved].

<PAGE>

                                                                       EXHIBIT F

                         FORM OF REVERSE OF CERTIFICATES

                                INDYMAC ABS, INC.
                  Home Equity Mortgage Loan Asset-Backed Trust,
               Home Equity Mortgage Loan Asset-Backed Certificates

         This Certificate is one of a duly authorized issue of Certificates
designated as IndyMac ABS, Inc., Home Equity Mortgage Loan Asset-Backed
Certificates, of the Series specified on the face hereof (herein collectively
called the "Certificates"), and representing a beneficial ownership interest in
the Trust Fund created by the Agreement.

         The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the funds on deposit in the Distribution Account for
payment hereunder and that the 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.

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

         Pursuant to the terms of the Agreement, a distribution will be made on
the 25th day of each month or, if such 25th day is not a Business Day, the
Business Day immediately following (the "Distribution Date"), commencing on the
first Distribution 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 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
Distribution Date pursuant to the Agreement. The Record Date applicable to each
Distribution Date is the last Business Day of the month next preceding the month
of such Distribution Date.

         Distributions on this Certificate shall be made by wire transfer of
immediately available funds to the account of the Holder hereof at a bank or
other entity having appropriate facilities therefor, if such Certificateholder
shall have so notified the Trustee in writing at least five (5) Business Days
prior to the related Record Date and such Certificateholder shall satisfy the
conditions to receive such form of payment set forth in the Agreement, or, if
not, by check mailed by first class mail to the address of such
Certificateholder appearing in the Certificate Register. The final distribution
on each Certificate will be made in like manner, but only upon presentment and
surrender of such Certificate at the location specified in the notice to
Certificateholders of such final distribution.

         The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Trustee and the rights of the Certificateholders under the Agreement at any time
by the Depositor, the Master Servicer and the Trustee with the consent of the
NIM Insurer and the Holders of Certificates affected by such amendment
evidencing the requisite Percentage Interest, as provided in the Agreement. Any
such consent by the Holder of this Certificate shall be conclusive and binding
on such Holder and upon all future Holders of this Certificate and of any
Certificate issued upon the transfer hereof or in exchange therefor or in lieu
hereof whether or not notation of such consent is made upon this Certificate.
The Agreement also permits the amendment thereof, in certain limited
circumstances, without the consent of the Holders of any of the Certificates.

         As provided in the Agreement and subject to certain limitations therein
set forth, the transfer of this Certificate is registrable in the Certificate
Register of the Trustee upon surrender of this Certificate for registration of
transfer at the office or agency maintained by the Trustee in New York, New
York, accompanied by a written instrument of transfer in form satisfactory to
the 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 Fund will be issued to the
designated transferee or transferees.

         The Certificates are issuable only as registered Certificates without
coupons in denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, 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 Trustee may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

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

         On any Distribution Date following the date on which the aggregate
Stated Principal Balance of the Mortgage Loans as of the last day of the related
Remittance Period is less than 10% of the sum of the Cut-off Date Principal
Balance and the Subsequent Cut-off Date Principal Balances, as applicable, of
the Mortgage Loans, the Master Servicer will have the option to purchase, in
whole, from the Trust Fund all remaining Mortgage Loans and all property
acquired in respect of the Mortgage Loans at a purchase price determined as
provided in the Agreement. The obligations and responsibilities created by the
Agreement will terminate as provided in Section 9.01 of the Agreement.

         Any term used herein that is defined in the Agreement shall have the
meaning assigned in the Agreement, and nothing herein shall be deemed
inconsistent with that meaning.

<PAGE>

                                   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 Fund.

         I (We) further direct the Trustee 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

<PAGE>

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for purposes of distribution:

         Distributions 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.

STATE OF                  )
                          ) ss.:
COUNTY OF                 )

         On the ___ th day of __________, 200_ before me, a notary public in and
for said State, personally appeared _______________________, known to me who,
being by me duly sworn, did depose and say that he executed the foregoing
instrument.

                                                      --------------------------
                                                              Notary Public

[Notarial Seal]

<PAGE>

                                                                     EXHIBIT G-1

                    FORM OF INITIAL CERTIFICATION OF TRUSTEE

                                     [date]

[Depositor]
[Master Servicer]
[Seller]

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

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

           Re:    Pooling and Servicing Agreement among IndyMac ABS, Inc., as
                  Depositor, IndyMac Bank, F.S.B., as Seller and Master
                  Servicer, and Deutsche Bank National Trust Company, as
                  Trustee, Home Equity Mortgage Loan Asset-Backed Trust, Series
                  INABS 2005-B, Home Equity Mortgage Loan Asset-Backed
                  Certificates, Series INABS 2005-B

Gentlemen:

         In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement (the "POOLING AND SERVICING AGREEMENT"), the undersigned, as
Trustee, hereby certifies that, as to each Mortgage Loan listed in the Mortgage
Loan Schedule (other than any Mortgage Loan listed in the attached schedule), it
has received:

         (i) the original Mortgage Note, endorsed as provided in the following
form: "Pay to the order of ________, without recourse"; and

         (ii) a duly executed assignment of the Mortgage (which may be included
in a blanket assignment or assignments); PROVIDED, HOWEVER, that it has received
no assignment with respect to any Mortgage for which the related Mortgaged
Property is located in the Commonwealth of Puerto Rico.

         Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to such
Mortgage Loan.

         The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to: (i)
the validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule, or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.

         Capitalized words and phrases used herein have the respective meanings
assigned to them in the Pooling and Servicing Agreement.

<PAGE>

                                            DEUTSCHE BANK NATIONAL TRUST COMPANY
                                              as Trustee

                                            By:
                                                --------------------------------
                                            Name:
                                                   -----------------------------
                                            Title:
                                                   -----------------------------

<PAGE>

                                                                     EXHIBIT G-2

                     FORM OF DELAYED DELIVERY CERTIFICATION

                                     [date]

[Depositor]
[Master Servicer]

            Re:   Pooling and Servicing Agreement among IndyMac ABS, Inc., as
                  Depositor, IndyMac Bank, F.S.B., as Seller and Master
                  Servicer, and Deutsche Bank National Trust Company, as
                  Trustee, Home Equity Mortgage Loan Asset-Backed Trust, Series
                  INABS 2005-B, Home Equity Mortgage Loan Asset-Backed
                  Certificates, Series INABS 2005-B
                  -------------------------------------------------------------

Gentlemen:

         [Reference is made to the Initial Certification of Trustee relating to
the above-referenced series, with the schedule of exceptions attached thereto,
delivered by the undersigned, as Trustee, on the Closing Date in accordance with
Section 2.02 of the above-captioned Pooling and Servicing Agreement.] The
undersigned hereby certifies that as to each Delayed Delivery Mortgage Loan
listed on the Schedule A attached hereto (other than any Mortgage Loan paid in
full or listed on Schedule B attached hereto) it has received:

                           (i) (A) the original Mortgage Note, endorsed by
                  manual or facsimile signature in blank in the following form:
                  "Pay to the order of ______________________________ without
                  recourse," with all intervening endorsements showing a
                  complete chain of endorsement from the originator to the
                  Person endorsing the Mortgage Note (each such endorsement
                  being sufficient to transfer all interest of the party so
                  endorsing, as noteholder or assignee thereof, in that Mortgage
                  Note) and (B) with respect to any Lost Mortgage Note, a lost
                  note affidavit from the Seller stating that the original
                  Mortgage Note was lost or destroyed, together with a copy of
                  such Mortgage Note;

                           (ii) a duly executed assignment of the Mortgage
                  (which may be included in a blanket assignment or
                  assignments), together with, except as provided below, all
                  interim recorded assignments of such mortgage (each such
                  assignment, when duly and validly completed, to be in
                  recordable form and sufficient to effect the assignment of and
                  transfer to the assignee thereof, under the Mortgage to which
                  the assignment relates); PROVIDED, HOWEVER, that such
                  assignment of Mortgage need not be delivered in the case of a
                  Mortgage for which the related Mortgaged Property is located
                  in the Commonwealth of Puerto Rico.

         Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to the
Mortgage Loan.

         The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
above-referenced Pooling and Servicing Agreement. The Trustee makes no
representations as to: (i) the validity, legality, sufficiency, enforceability
or genuineness of any of the documents contained in each Mortgage File of any of
the Mortgages identified on the [Mortgage Loan Schedule][Loan Number and
Borrower Identification Mortgage Loan Schedule] or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.

         Capitalized words and phrases used herein have the respective meanings
assigned to them in the above-captioned Pooling and Servicing Agreement.

                                            DEUTSCHE BANK NATIONAL TRUST COMPANY
                                              as Trustee

                                            By:
                                               ---------------------------------
                                               Name:
                                               Title:

<PAGE>

                                                                       EXHIBIT H

                     FORM OF FINAL CERTIFICATION OF TRUSTEE

                                     [date]

[Depositor]
[Master Servicer]
[Seller]

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

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

           Re:    Pooling and Servicing Agreement among IndyMac ABS, Inc., as
                  Depositor, IndyMac Bank, F.S.B., as Seller and Master
                  Servicer, and Deutsche Bank National Trust Company, as
                  Trustee, Home Equity Mortgage Loan Asset-Backed Trust, Series
                  INABS 2005-B, Home Equity Mortgage Loan Asset-Backed
                  Certificates, Series INABS 2005-B
                  -------------------------------------------------------------

Gentlemen:

         In accordance with Section 2.02 of the above-captioned Pooling and
Servicing Agreement (the "POOLING AND SERVICING AGREEMENT"), the undersigned, as
Trustee, hereby certifies that as to each Mortgage Loan listed in the Mortgage
Loan Schedule (other than any Mortgage Loan paid in full or listed on the
attached Document Exception Report) it has received:

         (i) The original Mortgage Note, endorsed in the form provided in
Section 2.01(c)(i) of the Pooling and Servicing Agreement, with all intervening
endorsements showing a complete chain of endorsement from the originator to the
Seller.

         (ii) The original recorded Mortgage.

         (iii) A duly executed assignment of the Mortgage in the form provided
in Section 2.01(c)(iii) of the Pooling and Servicing Agreement; PROVIDED,
HOWEVER, that it has received no assignment with respect to any Mortgage for
which the related Mortgaged Property is located in the Commonwealth of Puerto
Rico, or, if the Depositor has certified or the Trustee otherwise knows that the
related Mortgage has not been returned from the applicable recording office, a
copy of the assignment of the Mortgage (excluding information to be provided by
the recording office).

         (iv) The original or duplicate original recorded assignment or
assignments of the Mortgage showing a complete chain of assignment from the
originator to the Seller.

         (v) The original or duplicate original lender's title policy and all
riders thereto or, any one of an original title binder, an original preliminary
title report or an original title commitment, or a copy thereof certified by the
title company.

         Based on its review and examination and only as to the foregoing
documents, (a) such documents appear regular on their face and related to such
Mortgage Loan and (b) the information set forth in items (i), (ii), (iii), (iv),
(vi) and (xi)(a) of the definition of the "Mortgage Loan Schedule" in Section
1.01 of the Pooling and Servicing Agreement accurately reflects information set
forth in the Mortgage File.

         The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to: (i)
the validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule; or (ii) the collectability,
insurability, effectiveness or suitability of any such Mortgage Loan.
Notwithstanding anything herein to the contrary, the Trustee has made no
determination and makes no representations as to whether (i) any endorsement is
sufficient to transfer all interest of the party so endorsing, as Noteholder or
assignee thereof, in that Mortgage Note or (ii) any assignment is in recordable
form or sufficient to effect the assignment of and transfer to the assignee
thereof, under the Mortgage to which the assignment relates.

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.

                                            DEUTSCHE BANK NATIONAL TRUST COMPANY
                                              as Trustee

                                            By:
                                                --------------------------------
                                                Name:
                                                Title:

<PAGE>

                                                                       EXHIBIT I

                           FORM OF TRANSFER AFFIDAVIT

                               IndyMac ABS, Inc.,

        Home Equity Mortgage Loan Asset-Backed Trust, Series INABS 2005-B
              Home Equity Mortgage Loan Asset-Backed Certificates,

                               Series INABS 2005-B

STATE OF                )
                        ) ss.:
COUNTY OF               )

         The undersigned, being first duly sworn, deposes and says as follows:

         1. The undersigned is an officer of ____________________________, the
proposed Transferee of an Ownership Interest in a Class R Certificate (the
"CERTIFICATE") issued pursuant to the Pooling and Servicing Agreement (the
"AGREEMENT"), relating to the above-referenced Series, by and among IndyMac ABS,
Inc., as depositor (the "DEPOSITOR"), IndyMac Bank, F.S.B., as seller and master
servicer and Deutsche Bank National Trust Company, as trustee. Capitalized terms
used, but not defined herein or in Annex 1, shall have the meanings ascribed to
such terms in the Agreement. The Transferee has authorized the undersigned to
make this affidavit on behalf of the Transferee.

         2. The Transferee is, as of the date hereof, and will be, as of the
date of the Transfer, a Permitted Transferee. The Transferee is acquiring its
Ownership Interest in the Certificate for its own account.

         3. The Transferee has been advised of, and understands that: (i) a tax
will be imposed on Transfers of the Certificate to Persons that are not
Permitted Transferees; (ii) such tax will be imposed on the transferor, or, if
such Transfer is through an agent (which includes a broker, nominee or
middleman) for a Person that is not a Permitted Transferee, on the agent; and
(iii) the Person otherwise liable for the tax shall be relieved of liability for
the tax if the Transferee furnishes to such Person an affidavit that such
Transferee is a Permitted Transferee and, at the time of Transfer, such Person
does not have actual knowledge that the affidavit is false.

         4. The Transferee has been advised of, and understands that a tax will
be imposed on a "pass-through entity" holding the Certificate if at any time
during the taxable year of the pass-through entity a Person that is not a
Permitted Transferee is the record holder of an interest in such entity. The
Transferee understands that such tax will not be imposed for any period with
respect to which the record holder furnishes to the pass-through entity an
affidavit that such record holder is a Permitted Transferee and the pass-through
entity does not have actual knowledge that such affidavit is false. (For this
purpose, a "pass-through entity" includes a regulated investment company, a real
estate investment trust or common trust fund, a partnership, trust or estate,
and certain cooperatives and, except as may be provided in the Treasury
Regulations, persons holding interests in pass-through entities as a nominee for
another Person.)

         5. The Transferee has reviewed Section 5.02(c) of the Agreement
(attached hereto as Annex 2 and incorporated herein by reference) and
understands the legal consequences of the acquisition of an Ownership Interest
in the Certificate including, without limitation, the restrictions on subsequent
Transfers and the provisions regarding voiding the Transfer and mandatory sales.
The Transferee expressly agrees to be bound by and to abide by the provisions of
Section 5.02(c) of the Agreement and the restrictions noted on the face of the
Certificate. The Transferee understands and agrees that any breach of any of the
representations included herein shall render the Transfer to the Transferee
contemplated hereby null and void.

         6. The Transferee agrees to require a Transfer Affidavit from any
Person to whom the Transferee attempts to Transfer its Ownership Interest in the
Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as Exhibit J to the Agreement (a "TRANSFEROR CERTIFICATE") to the
effect that such Transferee has no actual knowledge that the Person to which the
Transfer is to be made is not a Permitted Transferee.

         7. The Transferee's taxpayer identification number is ________________.

         8. The Transferee is a U.S. Person as defined in Code Section
7701(a)(30).

         9. The Transferee is aware that the Certificate may be a "noneconomic
residual interest" within the meaning of Treasury regulations promulgated
pursuant to the Code and that the transferor of a noneconomic residual interest
will remain liable for any taxes due with respect to the income on such residual
interest, unless no significant purpose of the transfer was to impede the
assessment or collection of tax. The Transferee does not have the intention to
impede the assessment or collection of any tax legally required to be paid with
respect to the Certificate.

         10. Transferee has historically paid the Transferee's debts as they
become due, and Transferee intends, and believes that the Transferee will be
able, to continue to pay Transferee's debts as such debts become due in the
future. Transferee has a valid business purpose for purchasing the Residuals.

         11. Transferee is not a foreign permanent establishment or fixed base
(within the meaning of an applicable income tax treaty) (a "FOREIGN BASE") of a
U.S. taxpayer. In addition, the Transferee will not (a) transfer the Class R
Certificates, directly or indirectly, to a Foreign Base, and (b) cause income
from the Class R Certificates to be attributable to a Foreign Base of the
Transferee or another U.S. taxpayer.

         12. Either:

                  (a) (i) At the time of the transfer, and at the close of each
of the Transferee's two fiscal years preceding the Transferee's fiscal year of
transfer, the Transferee's gross assets for financial reporting purposes exceed
$100 million and its net assets for financial reporting purposes exceed $10
million. For purposes of the preceding sentence, the gross assets and net assets
of a Transferee do not include any obligation of any Related Person or any other
asset if a principal purpose for holding or acquiring the other asset is to
permit the Transferee to satisfy the conditions of this paragraph 12(a); and
(ii) the Transferee is an Eligible Corporation and hereby agrees that any
subsequent transfer of the interest will be to another Eligible Corporation in a
transaction that satisfies this Transfer Affidavit, including this paragraph
12(a). For the purpose of this affidavit, the term "ELIGIBLE CORPORATION" means
any domestic C corporation (as defined in section 1361(a)(2) of the Code) other
than a corporation which is exempt from, or is not subject to, tax under section
11 of the Code, an entity described in section 851(a) or 856(a) of the Code, a
REMIC or an organization to which part I, subchapter T, chapter 1, subtitle A of
the Code applies, and the term "RELATED PERSON" means any person that bears a
relationship to the Transferee enumerated in section 267(b) or 707(b)(1) of the
Code, using "20 percent" instead of "50 percent" where it appears under the
provisions; or is under common control (within the meaning of section 52(a) and
(b) of the Code) with the Transferee; or

                  (b)(i) The Transferee is a United States Person; and (ii) the
present value of the anticipated tax liabilities associated with holding the
residual interest does not exceed the sum of: (A) the present value of any
consideration given to the Transferee to acquire the interest, (B) the present
value of the expected future distributions on the interest and (C) the present
value of the anticipated tax savings associated with holding the interest as the
REMIC generates losses. For purposes of calculating the aforementioned present
values: (i) the transferee has assumed that it pays tax at a rate equal to the
highest rate of tax specified in Code Section 11(b)(1) (unless the Transferee
has been subject to the alternative minimum tax under Section 55 of the Code in
the preceding two years and will compute its taxable income in the current
taxable year using the alternative minimum tax rate, in which case the
Transferee can assume that it pays tax at the rate specified in Section
55(b)(1)(B) of the Code (provided, that the Transferee states in this Transfer
Affidavit that it is using such alternate rate and that has been subject to the
alternative minimum tax under Section 55 of the Code in the preceding two years)
and will compute its taxable income in the current taxable year using the
alternative minimum tax rate); and (ii) the Transferee uses a discount rate
equal to the Federal short-term rate prescribed by section 1274(d) of the Code
for the month of the transfer and the compounding period used by the Transferee.

         13. The Transferee hereby represents to and for the benefit of the
transferor that the Transferee intends to pay any tax associated with holding
the Ownership Interest as they become due, fully understanding that it may incur
tax liabilities in excess of any cash flows generated by its Ownership Interest.

         14. The Transferee is not an employee benefit plan that is subject to
ERISA or a plan that is subject to Section 4975 of the Code, and the Transferee
is not acting on behalf of or using plan assets of such a plan.

<PAGE>

         IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer and its corporate seal to be hereunto affixed, duly
attested, this ____ day of __________________, 20__.

                                             -----------------------------------
                                                  Print Name of Transferee

                                         By:
                                             -----------------------------------
                                             Name:
                                             Title:

[Corporate Seal]

ATTEST:

----------------------------
[Assistant] Secretary

         Personally appeared before me the above-named ____________, known or
proved to me to be the same person who executed the foregoing instrument and to
be the ______________ of the Transferee, and acknowledged that he executed the
same as his free act and deed and the free act and deed of the Transferee.

         Subscribed and sworn before me this ____ day of ________ , 20__.

                                          --------------------------------------
                                                      NOTARY PUBLIC

                                          My Commission expires the _____ day of
                                          ____________, 20__

<PAGE>

                                                                    ANNEX 1
                                                                    to EXHIBIT I

                               CERTAIN DEFINITIONS

         "OWNERSHIP INTEREST": As to any Certificate, any ownership interest in
the Certificate, including any interest in the Certificate as its Holder and any
other interest in it, whether direct or indirect, legal or beneficial.

         "PERMITTED TRANSFEREE": Any Person other than (i) the United States,
any State or political subdivision thereof, or any agency or instrumentality of
any of the foregoing, (ii) a foreign government, International Organization or
any agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in Code Section 521) that is
exempt from tax imposed by Chapter 1 of the Code (including the tax imposed by
Code Section 511 on unrelated business taxable income) on any excess inclusions
(as defined in Code Section 860E(c)(1)) with respect to any Class R Certificate,
(iv) rural electric and telephone cooperatives described in Code Section
1381(a)(2)(c), (v) a Person that is not a U.S. Person and (vi) any other Person
so designated by the Depositor based upon an Opinion of Counsel that the
Transfer of an Ownership Interest in a Class R Certificate to such Person may
cause the Trust Fund to fail to qualify as a REMIC at any time that certain
Certificates are Outstanding. The terms "UNITED STATES," "STATE," and
"INTERNATIONAL ORGANIZATION" have the meanings in Code Section 7701 or successor
provisions. A corporation will not be treated as an instrumentality of the
United States or of any State or political subdivision thereof if all of its
activities are subject to tax, and, with the exception of the FHLMC, a majority
of its board of directors is not selected by such governmental unit.

         "PERSON": Any individual, corporation, partnership, joint venture,
bank, joint stock company, trust (including any beneficiary thereof),
unincorporated organization or government or any agency or political subdivision
thereof.

         "TRANSFER": Any direct or indirect transfer or sale of any Ownership
Interest in a Certificate, including the acquisition of a Certificate by the
Depositor.

         "TRANSFEREE": Any Person who is acquiring by Transfer any Ownership
Interest in a Certificate.

         "UNITED STATES PERSON" OR "U.S. PERSON": (i) A citizen or resident of
the United States; (ii) a corporation (or entity treated as a corporation for
tax purposes) created or organized in the United States or under the laws of the
United States or of any state thereof, including, for this purpose, the District
of Columbia; (iii) a partnership (or entity treated as a partnership for tax
purposes) organized in the United States or under the laws of the United States
or of any state thereof, including, for this purpose, the District of Columbia
(unless provided otherwise by future Treasury regulations); (iv) an estate whose
income is includible in gross income for United States income tax purposes
regardless of its source; (v) a trust, if a court within the United States is
able to exercise primary supervision over the administration of the trust and
one or more U.S. Persons have authority to control all substantial decisions of
the trust; or (vi) to the extent provided in Treasury regulations, certain
trusts in existence on August 20, 1996 that are treated as U.S. Persons before
that date and that elect to continue to be treated as U.S. Persons.

<PAGE>

                                                                    ANNEX 2
                                                                    to EXHIBIT I

                        SECTION 5.02 (C) OF THE AGREEMENT

          (c) Each Person who has or who acquires any Ownership Interest in a
Residual Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Residual
Certificate are expressly subject to the following provisions:

                  (i) Each Person holding or acquiring any Ownership Interest in
         a Residual Certificate shall be a Permitted Transferee and shall
         promptly notify the Trustee (with a copy of any such notice to the NIM
         Insurer) of any change or impending change in its status as a Permitted
         Transferee.

                  (ii) No Ownership Interest in a Residual Certificate may be
         registered on the Closing Date or thereafter transferred, and the
         Trustee shall not register the Transfer of any Residual Certificate
         unless, in addition to the certificates required to be delivered to the
         Trustee under subparagraph (b) above, the Trustee shall have been
         furnished with an affidavit (a copy of which shall be provided to the
         NIM Insurer) (a "TRANSFER AFFIDAVIT") of the initial owner or the
         proposed transferee in the form of Exhibit I (subject to the
         limitations with respect thereto as set forth in Section 5.02(b)).

                  (iii) Subject to the limitations set forth in Section 5.02(b),
         each Person holding or acquiring any Ownership Interest in a Residual
         Certificate shall agree:

                           (A) to obtain a Transfer Affidavit from any other
                  Person to whom such Person attempts to Transfer its Ownership
                  Interest in a Residual Certificate;

                           (B) to obtain a Transfer Affidavit from any Person
                  for whom such Person is acting as nominee, trustee or agent in
                  connection with any Transfer of a Residual Certificate; and

                           (C) not to Transfer its Ownership Interest in a
                  Residual Certificate or to cause the Transfer of an Ownership
                  Interest in a Residual Certificate to any other Person if it
                  has actual knowledge that such Person is not a Permitted
                  Transferee.

                  (iv) Any attempted or purported Transfer of any Ownership
         Interest in a Residual Certificate in violation of this Section 5.02(c)
         shall be absolutely null and void and shall vest no rights in the
         purported Transferee. If any purported transferee shall become a Holder
         of a Residual Certificate in violation of this Section 5.02(c), then
         the last preceding Permitted Transferee shall be restored to all rights
         as Holder thereof retroactive to the date of registration of Transfer
         of such Residual Certificate. The Trustee shall not be liable to any
         Person for any registration of Transfer of a Residual Certificate that
         is in fact not permitted by Section 5.02(b) and this Section 5.02(c) or
         for making any payments due on such Certificate to the Holder thereof
         or taking any other action with respect to such Holder under this
         Agreement so long as the Transfer was registered after receipt of the
         related Transfer Affidavit, Transferor Certificate and either the Rule
         144A Letter or the Investment Letter. The Trustee shall be entitled but
         not obligated to recover from any Holder of a Residual Certificate that
         was in fact not a Permitted Transferee at the time it became a Holder
         or, at such subsequent time as it became other than a Permitted
         Transferee, all payments made on such Residual Certificate at and after
         either such time. Any such payments so recovered by the Trustee shall
         be paid and delivered by the Trustee to the last preceding Permitted
         Transferee of such Certificate.

                  (v) The Depositor shall use its best efforts to make
         available, upon receipt of written request from the Trustee, all
         information necessary to compute any tax imposed under Section 860E(e)
         of the Code as a result of a Transfer of an Ownership Interest in a
         Residual Certificate to any Holder who is not a Permitted Transferee.

         The restrictions on Transfers of a Residual Certificate in this Section
5.02(c) shall cease to apply (and the applicable portions of the legend on a
Residual Certificate may be deleted) with respect to Transfers occurring after
delivery to the Trustee of an Opinion of Counsel, which Opinion of Counsel shall
not be an expense of the Trust Fund, the Trustee, the Seller, the NIM Insurer or
the Master Servicer, to the effect that the elimination of such restrictions
will not cause the Trust Fund hereunder to fail to qualify as a REMIC at any
time that the Certificates are outstanding or result in the imposition of any
tax on the Trust Fund, a Certificateholder or any other Person. The Opinion of
Counsel shall be accompanied by written notification from each Rating Agency
that the removal of the restriction will not cause the Rating Agency to
downgrade its ratings of the Certificates. Each Person holding or acquiring any
Ownership Interest in a Residual Certificate hereby consents to any amendment of
this Agreement that, based on an Opinion of Counsel furnished to the Trustee, is
reasonably necessary (a) to ensure that the record ownership of, or any
beneficial interest in, a Residual Certificate is not transferred, directly or
indirectly, to a Person that is not a Permitted Transferee and (b) to provide
for a means to compel the Transfer of a Residual Certificate that is held by a
Person that is not a Permitted Transferee to a Holder that is a Permitted
Transferee.

<PAGE>

                                                                       EXHIBIT J

                         FORM OF TRANSFEROR CERTIFICATE

                                                                __________, 20__

IndyMac ABS, Inc.
155 North Lake Avenue
Pasadena, California 91101

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705-4934

Attention: :  [___________]
              Series INABS 2005-B

              Re:  IndyMac ABS, Inc. Home Equity Loan Asset-Backed Trust, Series
                   INABS 2005-B, Home Equity Mortgage Loan Asset-Backed
                   Certificates, Series INABS 2005-B, Class ___

Ladies and Gentlemen:

         In connection with our disposition of the above Certificates we certify
that (a) we understand that the Certificates have not been registered under the
Securities Act of 1933, as amended (the "ACT"), and are being disposed by us in
a transaction that is exempt from the registration requirements of the Act, (b)
we have not offered or sold any Certificates to, or solicited offers to buy any
Certificates from, any person, or otherwise approached or negotiated with any
person with respect thereto, in a manner that would be deemed, or taken any
other action that would result in, a violation of Section 5 of the Act and (c)
to the extent we are disposing of a Residual Certificate, we have no knowledge
the Transferee is not a Permitted Transferee.

                                               Very truly yours,

                                               ---------------------------------
                                                   Print Name of Transferor

                                               By:
                                                   -----------------------------
                                                       Authorized Officer

<PAGE>

                                                                       EXHIBIT K

                                   [RESERVED]

<PAGE>

                                                                       EXHIBIT L

                                RULE 144A LETTER

                                                              ____________, 20__

IndyMac ABS, Inc.
155 North Lake Avenue
Pasadena, California 91101

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705-4934
Attention: : [___________]
             Series INABS 2005-B

             Re:  Home Equity Mortgage Loan Asset-Backed Trust, Series INABS
                  2005-B Home Equity Mortgage Loan Asset-Backed Certificates,
                  Series INABS 2005-B, Class [_]
                  -----------------------------------------------------------

Ladies and Gentlemen:

         In connection with our acquisition of the above Certificates we certify
that (a) we understand that the Certificates are not being registered under the
Securities Act of 1933, as amended (the "ACT"), or any state securities laws and
are being transferred to us in a transaction that is exempt from the
registration requirements of the Act and any such laws, (b) we have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) (i) we are not an employee benefit plan that is
subject to the Employee Retirement Income Security Act of 1974, as amended, or a
plan or arrangement that is subject to Section 4975 of the Internal Revenue Code
of 1986, as amended, nor are we acting on behalf of any such plan or arrangement
or using the assets of any such plan or arrangement to effect such acquisition,
(ii) we are purchasing a Certificate that is not a Class C or Class R
Certificate and has been the subject of an ERISA-Qualifying Underwriting and we
are an insurance company that is purchasing such Certificates with funds
contained in an "insurance company general account" (as such term is defined in
Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE 95-60")) and
that the purchase and holding of such Certificates satisfy the requirements for
exemptive relief under Sections I and III of PTCE 95-60, or (iii) in the case of
a Class M-11 Certificate which has been the subject of an ERISA-Qualifying
Underwriting, it has acquired and is holding such Certificate in reliance on the
Exemption, including that such Certificate must be rated, at the time of
purchase, not lower than "BBB-" (or its equivalent) by S&P, Fitch or Moody's and
such Certificate is so rated, or (e) we have not, nor has anyone acting on our
behalf offered, transferred, pledged, sold or otherwise disposed of the
Certificates, any interest in the Certificates or any other similar security to,
or solicited any offer to buy or accept a transfer, pledge or other disposition
of the Certificates, any interest in the Certificates or any other similar
security from, or otherwise approached or negotiated with respect to the
Certificates, any interest in the Certificates or any other similar security
with, any person in any manner, or made any general solicitation by means of
general advertising or in any other manner, or taken any other action, that
would constitute a distribution of the Certificates under the Act or that would
render the disposition of the Certificates a violation of Section 5 of the Act
or require registration pursuant thereto, nor will act, nor has authorized or
will authorize any person to act, in such manner with respect to the
Certificates, (f) to the extent that the Certificate transferred is a Class C
Certificate, we are a bankruptcy-remote entity and (g) we are a "qualified
institutional buyer" as that term is defined in Rule 144A under the Act and have
completed either of the forms of certification to that effect attached hereto as
Annex 1 or Annex 2. We are aware that the sale to us is being made in reliance
on Rule 144A. We are acquiring the Certificates for our own account or for
resale pursuant to Rule 144A and further, understand that such Certificates may
be resold, pledged or transferred only (i) to a person reasonably believed to be
a qualified institutional buyer that purchases for its own account or for the
account of a qualified institutional buyer to whom notice is given that the
resale, pledge or transfer is being made in reliance on Rule 144A, or (ii)
pursuant to another exemption from registration under the Act.

<PAGE>

                                                            ANNEX 1 TO EXHIBIT L

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
          [For Transferees Other Than Registered Investment Companies]

         The undersigned (the "BUYER") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

         1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

         2. In connection with purchases by the Buyer, the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended ("RULE 144A") because (i) the Buyer owned or invested on
a discretionary basis $____________(1) in securities (except for the excluded
securities referred to below) as of the end of the Buyer's most recent fiscal
year (such amount being calculated in accordance with Rule 144A and (ii) the
Buyer satisfies the criteria in the category marked below.

___ CORPORATION, ETC. The Buyer is a corporation (other than a bank, savings and
loan association or similar institution), Massachusetts or similar business
trust, partnership, or charitable organization described in Section 501(c)(3) of
the Internal Revenue Code of 1986, as amended.

___ BANK. The Buyer (a) is a national bank or banking institution organized
under the laws of any State, territory or the District of Columbia, the business
of which is substantially confined to banking and is supervised by the State or
territorial banking commission or similar official or is a foreign bank or
equivalent institution, and (b) has an audited net worth of at least $25,000,000
as demonstrated in its latest annual financial statements, a copy of which is
attached hereto.

___ SAVINGS AND LOAN. The Buyer (a) is a savings and loan association, building
and loan association, cooperative bank, homestead association or similar
institution, that is supervised and examined by a State or Federal authority
having supervision over any such institutions or is a foreign savings and loan
association or equivalent institution and (b) has an audited net worth of at
least $25,000,000 as demonstrated in its latest annual financial statements, a
copy of which is attached hereto.

___ BROKER-DEALER. The Buyer is a dealer registered pursuant to Section 15 of
the Securities Exchange Act of 1934, as amended.

___ INSURANCE COMPANY. The Buyer is an insurance company whose primary and
predominant business activity is the writing of insurance or the reinsuring of
risks underwritten by insurance companies and that is subject to supervision by
the insurance commissioner or a similar official or agency of a State, territory
or the District of Columbia.

___ STATE OR LOCAL PLAN. The Buyer is a plan established and maintained by a
State, its political subdivisions, or any agency or instrumentality of the State
or its political subdivisions, for the benefit of its employees.

___ ERISA PLAN. The Buyer is an employee benefit plan within the meaning of
Title I of the Employee Retirement Income Security Act of 1974, as amended.

___ INVESTMENT ADVISOR. The Buyer is an investment advisor registered under the
Investment Advisors Act of 1940, as amended.

___ SMALL BUSINESS INVESTMENT COMPANY. Buyer is 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.

___ BUSINESS DEVELOPMENT COMPANY. Buyer is a business development company as
defined in Section 202(a)(22) of the Investment Advisors Act of 1940, as
amended.

         3. The term "SECURITIES" as used herein does not include (i) securities
of issuers that are affiliated with the Buyer, (ii) securities that are part of
an unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,
(iii) securities issued or guaranteed by the U.S. or any instrumentality
thereof, (iv) bank deposit notes and certificates of deposit, (v) loan
participations, (vi) repurchase agreements, (vii) securities owned but subject
to a repurchase agreement and (viii) currency, interest rate and commodity
swaps.

         4. For purposes of determining the aggregate amount of securities owned
or invested on a discretionary basis by the Buyer, the Buyer used the cost of
such securities to the Buyer and did not include any of the securities referred
to in the preceding paragraph, except (i) where the Buyer reports its securities
holdings in its financial statements on the basis of their market value and (ii)
no current information with respect to the cost of those securities has been
published. If clause (ii) in the preceding sentence applies, the securities may
be valued at market. Further, in determining such aggregate amount, the Buyer
may have included securities owned by subsidiaries of the Buyer, but only if
such subsidiaries are consolidated with the Buyer in its financial statements
prepared in accordance with generally accepted accounting principles and if the
investments of such subsidiaries are managed under the Buyer's direction.
However, such securities were not included if the Buyer is a majority-owned,
consolidated subsidiary of another enterprise and the Buyer is not itself a
reporting company under the Securities Exchange Act of 1934, as amended.

         5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Certificates
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

         6. Until the date of purchase of the Rule 144A Securities, the Buyer
will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan is provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                              ----------------------------------
                                                    Print Name of Transferee

                                              By:
                                                  ------------------------------
                                                  Name:
                                                  Title:

                                              Date:
                                                    ----------------------------

--------------
(1) Buyer must own or invest on a discretionary basis at least $100,000,000 in
securities unless Buyer is a dealer, and, in that case, Buyer must own or invest
on a discretionary basis at least $10,000,000 in securities.

<PAGE>

                                                            ANNEX 2 TO EXHIBIT L

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
           [For Transferees that are Registered Investment Companies]

         The undersigned (the "BUYER") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

         1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("RULE 144A") because Buyer is part of a
Family of Investment Companies, is such an officer of the Adviser.

         2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.

___ The Buyer owned $____________ in securities (other than the excluded
securities referred to below) as of the end of the Buyer's most recent fiscal
year (such amount being calculated in accordance with Rule 144A).

___ The Buyer is part of a Family of Investment Companies that owned in the
aggregate $________ in securities (other than the excluded securities referred
to below) as of the end of the Buyer's most recent fiscal year (such amount
being calculated in accordance with Rule 144A).

         3. The term "FAMILY OF INVESTMENT COMPANIES" as used herein means two
or more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

         4. The term "SECURITIES" as used herein does not include (i) securities
of issuers that are affiliated with the Buyer or are part of the Buyer's Family
of Investment Companies, (ii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements, (vi) securities owned but
subject to a repurchase agreement and (vii) currency, interest rate and
commodity swaps.

         5. The Buyer is familiar with Rule 144A and understands that the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates are relying and will continue to rely on the statements
made herein because one or more sales to the Buyer will be in reliance on Rule
144A. In addition, the Buyer will only purchase for the Buyer's own account.

         6. Until the date of purchase of the Certificates, the undersigned will
notify the parties listed in the Rule 144A Transferee Certificate to which this
certification relates of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of the Certificates will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

                                            ------------------------------------
                                               Print Name of Buyer or Advisor

                                            By:
                                                --------------------------------
                                                Name:
                                                Title:

                                            IF AN ADVISER:

                                            ------------------------------------
                                                      Print Name of Buyer

                                            Date:
                                                  ------------------------------

<PAGE>

                                                                       EXHIBIT M

                           FORM OF REQUEST FOR RELEASE
                                  (for Trustee)

                               IndyMac ABS, Inc.,

        Home Equity Mortgage Loan Asset-Backed Trust, Series INABS 2005-B
              Home Equity Mortgage Loan Asset-Backed Certificates,

                               Series INABS 2005-B

LOAN INFORMATION

       Name of Mortgagor
                                                   -----------------------------
       Servicer
       Loan No.:
                                                   -----------------------------
TRUSTEE

       Name:
                                                   -----------------------------
       Address:
                                                   -----------------------------

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

                                                   -----------------------------
       Trustee
       Mortgage File No.:
                                                   -----------------------------

         The undersigned Master Servicer hereby acknowledges that it has
received from Deutsche Bank National Trust Company, as Trustee for the Holders
of Home Equity Mortgage Loan Asset-Backed Certificates, of the above-referenced
Series, the documents referred to below (the "DOCUMENTS"). All capitalized terms
not otherwise defined in this Request for Release shall have the meanings given
them in the Pooling and Servicing Agreement (the "POOLING AND SERVICING
AGREEMENT") relating to the above-referenced Series among the Trustee, IndyMac
Bank, F.S.B., as Seller and Master Servicer and IndyMac ABS, Inc., as Depositor.

(__)      Mortgage Note dated ____________, ____, in the original principal sum
          of $__________, made by __________________ payable to, or endorsed to
          the order of, the Trustee.
(__)      Mortgage recorded on ________________ as instrument no. __________ in
          the County Recorder's Office of the County of ____________, State of
          ___________ in book/reel/docket __________of official records at
          page/image ______________.
(__)      Deed of Trust recorded on ____________ as instrument no. ____________
          in the County Recorder's Office of the County of ___________, State of
          __________ in book/reel/docket _____________ of official records at
          page/image ___________.
(__)      Assignment of Mortgage or Deed of Trust to the Trustee, recorded on
          ____________, ____, as instrument no. __________ in the County
          Recorder's Office of the County of ________, State of _________ in
          book/reel/docket _________ of official records at page/image
          _____________.
(__)      Other documents, including any amendments, assignments or other
          assumptions of the Mortgage Note or Mortgage.

          (__)
                  --------------------------------------------------------------
          (__)
                  --------------------------------------------------------------
          (__)
                  --------------------------------------------------------------
          (__)
                  --------------------------------------------------------------

         The undersigned Master Servicer hereby acknowledges and agrees as
follows:

                  (1) The Master Servicer shall hold and retain possession of
         the Documents in trust for the benefit of the Trustee, solely for the
         purposes provided in the Agreement.

                  (2) The Master Servicer shall not cause or knowingly permit
         the Documents to become subject to, or encumbered by, any claim, liens,
         security interest, charges, writs of attachment or other impositions
         nor shall the Master Servicer assert or seek to assert any claims or
         rights of setoff to or against the Documents or any proceeds thereof.

                  (3) The Master Servicer shall return each and every Document
         previously requested from the Mortgage File to the Trustee when the
         need therefor no longer exists, unless the Mortgage Loan relating to
         the Documents has been liquidated and the proceeds thereof have been
         remitted to the Certificate Account and except as expressly provided in
         the Agreement.

                  (4) The Documents and any proceeds thereof, including any
         proceeds of proceeds, coming into the possession or control of the
         Master Servicer shall at all times be earmarked for the account of the
         Trustee, and the Master Servicer shall keep the Documents and any
         proceeds separate and distinct from all other property in the Master
         Servicer's possession, custody or control.

                                                INDYMAC BANK, F.S.B.

                                                By:
                                                    ----------------------------

                                                Its:
                                                    ----------------------------

Date:  ________________

<PAGE>

                                                                       EXHIBIT N

                    FORM OF REQUEST FOR RELEASE OF DOCUMENTS

To:      Deutsche Bank National Trust Company        Attn:  [____________]

Re:      The Pooling & Servicing Agreement dated as of June 1, 2005 among
         IndyMac Bank, F.S.B., as Seller and Master Servicer, IndyMac ABS, Inc.,
         as Depositor, and Deutsche Bank National Trust Company as Trustee

Ladies and Gentlemen:

         In connection with the administration of the Mortgage Loans held by you
as Trustee for IndyMac ABS, Inc., we request the release of the Mortgage Loan
File for the Mortgage Loans described below, for the reason indicated.

FT Account #:     Pool #:

MORTGAGOR'S NAME, ADDRESS AND ZIP CODE:

MORTGAGE LOAN NUMBER:

REASON FOR REQUESTING DOCUMENTS (check one)

_______1. Mortgage Loan paid in full (IndyMac hereby certifies that all amounts
have been received.)

_______2. Mortgage Loan Liquidated (IndyMac hereby certifies that all proceeds
of foreclosure, insurance, or other liquidation have been finally received.)

_______3. Mortgage Loan in Foreclosure.

_______4. Other (explain): ____________________________________

         If item 1 or 2 above is checked, and if all or part of the Mortgage
File was previously released to us, please release to us our previous receipt on
file with you, as well as an additional documents in your possession relating to
the above-specified Mortgage Loan. If item 3 or 4 is checked, upon return of all
of the above documents to you as Trustee, please acknowledge your receipt by
signing in the space indicated below, and returning this form.

<PAGE>

INDYMAC BANK, F.S.B.
155 North Lake Ave.
Pasadena, California  91101

By:
     ---------------------------------
     Name:
     Title:

Date:
     ---------------------------------

TRUSTEE CONSENT TO RELEASE AND
ACKNOWLEDGMENT OF RECEIPT

By:
     ---------------------------------
     Name:
     Title:

Date:
     ---------------------------------

<PAGE>

                                                                       EXHIBIT O

                          FORM OF TRUSTEE CERTIFICATION

To:      IndyMac ABS, Inc.
         IndyMac Bank, F.S.B.

Re:      The Pooling & Servicing Agreement dated as of June 1, 2005 among
         IndyMac Bank, F.S.B., as Seller and Master Servicer, IndyMac ABS, Inc.,
         as Depositor, and Deutsche Bank National Trust Company as Trustee

Ladies and Gentlemen:

         In connection with the delivery of the Required Certifications on
behalf of the Trust Fund, we certify that, based on our knowledge, the
information contained in the Monthly Statements, taken as a whole, does not
contain an untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in the light of the circumstances under
which they were made, not misleading as of the last day of the period covered by
any Required Certification.

DEUTSCHE BANK NATIONAL TRUST COMPANY

By:
   ------------------------------------
Name:
     ----------------------------------
Title:
      ---------------------------------
Date:
     ----------------------------------

<PAGE>

                                                                       EXHIBIT P

                             FORM OF ADDITION NOTICE

                                                                __________, 2005

Deutsche Bank National Trust Company
1761 East St. Andrew Place
Santa Ana, California 92705-4934

[S&P]
[Moody's]
[Fitch]

Re:      Pooling and Servicing Agreement, dated as of June 1, 2005, among
         IndyMac ABS, Inc., IndyMac Bank, F.S.B. and Deutsche Bank National
         Trust Company, relating to IndyMac ABS, Inc., Home Equity Mortgage Loan
         Asset-backed Certificates, Series INABS 2005-B
         -----------------------------------------------------------------------

Ladies and Gentlemen:

         Pursuant to Section 2.07 of the referenced Pooling and Servicing
Agreement, IndyMac ABS, Inc. has designated Subsequent Mortgage Loans to be sold
to the Trust Fund on __________, 2005 with an aggregate principal balance of
$__________ as of __________, 2005. Capitalized terms not otherwise defined
herein have the meaning set forth in the Pooling and Servicing Agreement.

         Please acknowledge your receipt of this notice by countersigning the
enclosed copy in the space indicated below and returning it to the attention of
the undersigned.

<PAGE>

                                                 Very truly yours,

                                                 INDYMAC ABS, INC.

                                                 By:
                                                     ---------------------------
                                                 Name:
                                                 Title:

Acknowledged and Agreed:

DEUTSCHE BANK NATIONAL TRUST
COMPANY, as Trustee

By:
   --------------------------------
Name:
Title:

By:
   --------------------------------
Name:
Title:

<PAGE>

                                                                       EXHIBIT Q

                     FORM OF SUBSEQUENT TRANSFER INSTRUMENT

         Pursuant to this Subsequent Transfer Instrument, dated _________, 2005
(the "INSTRUMENT"), among IndyMac ABS, Inc. (the "DEPOSITOR"), IndyMac Bank,
F.S.B. (the "SELLER") and Deutsche Bank National Trust Company (the "TRUSTEE"),
and pursuant to the Pooling and Servicing Agreement, dated as of June 1, 2005
(the "POOLING AND SERVICING AGREEMENT"), among the Depositor as depositor, the
Seller as master servicer (in such capacity, the "MASTER SERVICER") and the
Trustee as trustee of the IndyMac ABS, Inc., Home Equity Mortgage Loan
Asset-Backed Certificates, Series INABS 2005-B, the Seller and Depositor agree
to the sale by the Seller and the purchase by the Depositor, and the Depositor
and Trustee agree to the sale by the Depositor and the purchase by the Trustee,
on behalf of the Trust Fund, of the Mortgage Loans listed on the attached
Schedule of Subsequent Mortgage Loans (the "SUBSEQUENT MORTGAGE LOANS").

         Capitalized terms used but not otherwise defined herein shall have the
meanings set forth in the Pooling and Servicing Agreement.

         Section 1.  CONVEYANCE OF SUBSEQUENT MORTGAGE LOANS.

         (a) The Seller does hereby sell, transfer, assign, set over and convey
to the Depositor, without recourse, and the Depositor does hereby sell,
transfer, assign, set over and convey to the Trustee on behalf of the Trust
Fund, without recourse, all of its right, title and interest in and to the
Subsequent Mortgage Loans, including all amounts due on the Subsequent Mortgage
Loans after the related Subsequent Cut-off Date, and all items with respect to
the Subsequent Mortgage Loans to be delivered pursuant to Section 2.01 of the
Pooling and Servicing Agreement; provided, however, that the Seller reserves and
retains all right, title and interest in and to amounts due on the Subsequent
Mortgage Loans on or prior to the related Subsequent Cut-off Date. The Seller
and the Depositor, contemporaneously with the delivery of this Instrument, have
delivered or caused to be delivered to the Depositor and the Trustee,
respectively, each applicable item set forth in Section 2.01 of the Pooling and
Servicing Agreement. The transfer to the Depositor by the Seller of the
Subsequent Mortgage Loans identified on the attached Schedule of Subsequent
Mortgage Loans shall be absolute and is intended by the Seller to constitute and
to be treated as a sale by the Seller to the Depositor. The transfer to the
Trustee by the Depositor of the Subsequent Mortgage Loans identified on the
attached Schedule of Subsequent Mortgage Loans shall be absolute and is intended
by the Depositor, the Master Servicer, the Trustee and the Certificateholders to
constitute and to be treated as a sale by the Depositor to the Trust Fund.

         (b) Reserved.

         (c) Additional terms of the sale are set forth on Attachment A hereto.

         Section 2.  REPRESENTATIONS AND WARRANTIES; CONDITIONS PRECEDENT.

         (a) Each of the Seller and the Depositor hereby confirms that each of
the applicable conditions precedent and applicable representations and
warranties set forth in Section 2.07 of the Pooling and Servicing Agreement are
satisfied as of the date hereof.

         (b) All terms and conditions of the Pooling and Servicing Agreement are
hereby ratified and confirmed; provided, however, that in the event of any
conflict, the provisions of this Instrument shall control over the conflicting
provisions of the Pooling and Servicing Agreement.

         Section 3.  RECORDATION OF INSTRUMENT.

         To the extent permitted by applicable law, this Instrument, or a
memorandum thereof if permitted under applicable law, is subject to recordation
in all appropriate public offices for real property records in all of the
counties or other comparable jurisdictions in which any or all of the properties
subject to the Mortgages are situated, and in any other appropriate public
recording office or elsewhere, such recordation to be effected by the Master
Servicer at the Certificateholders' expense on direction of the related
Certificateholders, but only when accompanied by an Opinion of Counsel to the
effect that such recordation materially and beneficially affects the interests
of the Certificateholders or is necessary for the administration or servicing of
the Mortgage Loans.

         Section 4.  GOVERNING LAW.

         This Instrument shall be construed in accordance with the laws of the
State of New York and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws, without giving
effect to principles of conflicts of law.

         Section 5.  COUNTERPARTS.

         This Instrument may be executed in one or more counterparts and by the
different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same instrument.

         Section 6.  SUCCESSORS AND ASSIGNS.

         This Instrument shall inure to the benefit of and be binding upon the
Seller, the Depositor, the Trustee and their respective successors and assigns.

                                           INDYMAC ABS, INC., as Depositor

                                           By:
                                               --------------------------------
                                           Name:
                                           Title:

                                           INDYMAC BANK, F.S.B., as Seller

                                           By:
                                               --------------------------------
                                           Name:
                                           Title:

                                           DEUTSCHE BANK NATIONAL TRUST COMPANY,
                                           as Trustee

                                           By:
                                               --------------------------------
                                           Name:
                                           Title:

                                           By:
                                               --------------------------------
                                           Name:
                                           Title:

<PAGE>

                                   ATTACHMENTS

A.   Additional terms of sale.

B.   Schedule of Subsequent Mortgage Loans.

<PAGE>

                                  ATTACHMENT A

                            ADDITIONAL TERMS OF SALE

         (i) General

                  (a) Subsequent Cut-off Date: __________, 2005

                  (b) Subsequent Transfer Date: __________, 2005

                  (c) Aggregate Principal Balance of the Subsequent Mortgage
         Loans as of the Subsequent Cut-off Date: $___________

                  (d) Purchase Price: [100.00]%

         (ii) The obligation of the Trust Fund to purchase a Subsequent Mortgage
Loan on any Subsequent Transfer Date is subject to the satisfaction of the
conditions set forth in the immediately preceding paragraph and the accuracy of
the following representations and warranties with respect to the each such
Subsequent Mortgage Loan determined as of the applicable Subsequent Cut-off
Date: (i) such Subsequent Mortgage Loan may not be 30 or more days delinquent as
of the applicable Subsequent Cut-off Date; provided, however, that such
Subsequent Mortgage Loans may have a first payment date occurring on or after
the applicable Subsequent Cut-off Date and, therefore, such Subsequent Mortgage
Loan could not have been delinquent as of such Subsequent Cut-off Date; (ii) the
remaining term to maturity of such Subsequent Mortgage Loan will not be less
than 180 months and will not exceed 360 months from its first payment date;
(iii) the Subsequent Mortgage Loan may not provide for negative amortization;
(iv) the Subsequent Mortgage Loan will not have a Loan-to-Value Ratio greater
than 100.00%; (v) such Subsequent Mortgage Loans will have, as of the related
Subsequent Cut-off Date, a weighted average age since origination not in excess
of two months; (vi) such Subsequent Mortgage Loan will not have a Mortgage Rate
less than 3.500% or greater than 14.000%; (vii) such Subsequent Mortgage Loan
will have been serviced by the Master Servicer since origination or purchase by
the Seller in accordance with its standard servicing practices; (viii) such
Subsequent Mortgage Loan will have a first payment date occurring on or before
July 1, 2005; (ix) such Subsequent Mortgage Loan will have a principal balance
no greater than $1,000,000; and (x) such Subsequent Mortgage Loan will have been
underwritten in accordance with the criteria set forth under "--Underwriting
Standards of the Seller" in the Prospectus Supplement.

         (iii) Following the purchase of any Subsequent Mortgage Loan by the
Trust Fund to be included in Loan Group I, the Mortgage Loans in Loan Group I
(including the related Subsequent Mortgage Loans) will as of the related
Subsequent Cut-off Date: (i) have an original term to stated maturity of not
more than 360 months from the first payment date thereon; (ii) have a Mortgage
Rate of not less than 3.500% and not more than 14.000%; (iii) have a weighted
average Loan-to-Value Ratio of approximately 78.000%; (iv) have no Mortgage Loan
with a principal balance in excess of $1,000,000; (v) will consist of Mortgage
Loans with Prepayment Charges representing no less than approximately 76.000% of
the Mortgage Loans in Loan Group I; (vi) with respect to the adjustable-rate
Mortgage Loans in Loan Group I, have a weighted average Margin of approximately
5.480%; and (vii) have a weighted average FICO Score of approximately 629; in
each case measured by aggregate principal balance of the Mortgage Loans in Loan
Group I as of the Cut-off Date or Subsequent Cut-off Date applicable to each
Mortgage Loan. For purposes of the calculations described in this paragraph,
percentages of the Mortgage Loans in Loan Group I will be based on the principal
balance of the Closing Date Mortgage Loans in Loan Group I as of the Cut-off
Date and the principal balance of the Subsequent Mortgage Loans included in Loan
Group I as of the related Subsequent Cut-off Date.

         (iv) Following the purchase of any Subsequent Mortgage Loan by the
Trust Fund to be included in Loan Group II, the Mortgage Loans in Loan Group II
(including the related Subsequent Mortgage Loans) will as of the related
Subsequent Cut-off Date: (i) have an original term to stated maturity of not
more than 360 months from the first payment date thereon; (ii) have a Mortgage
Rate of not less than 3.500% and not more than 14.000%; (iii) have a weighted
average Loan-to-Value Ratio of approximately 78.50%; (iv) have no Mortgage Loan
with a principal balance in excess of $1,000,000; (v) will consist of Mortgage
Loans with Prepayment Charges representing no less than approximately 75.00% of
the Mortgage Loans in Loan Group II; (vi) with respect to the adjustable-rate
Mortgage Loans in Loan Group II, have a weighted average Margin of approximately
5.375%; and (vii) have a weighted average FICO Score of approximately 637; in
each case measured by aggregate principal balance of the Mortgage Loans in Loan
Group II as of the Cut-off Date or Subsequent Cut-off Date applicable to each
Mortgage Loan. For purposes of the calculations described in this paragraph,
percentages of the Mortgage Loans in Loan Group II will be based on the
principal balance of the Closing Date Mortgage Loans in Loan Group II as of the
Cut-off Date and the principal balance of the Subsequent Mortgage Loans in Loan
Group II as of the related Subsequent Cut-off Date.

<PAGE>

                                  ATTACHMENT B

                      SCHEDULE OF SUBSEQUENT MORTGAGE LOANS

                             Available Upon Request<PAGE>
                                                                    Exhibit 10.1

================================================================================

                            Published CUSIP Numbers:            Deal - 39365LAA8

                                                            U.S. Rev - 39365LAB6

                                                        Canadian Rev - 39365LAC4

                                CREDIT AGREEMENT

                            Dated as of June 29, 2005

                                      among

             THE GREENBRIER COMPANIES, INC., A DELAWARE CORPORATION
                              as the U.S. Borrower,

                                       and

                              TRENTONWORKS LIMITED
                            as the Canadian Borrower

                             BANK OF AMERICA, N.A.,
                   as Administrative Agent, Swing Line Lender
                                       and
                                   L/C Issuer,

                         BANC OF AMERICA SECURITIES LLC,
                                       as
                    Sole Lead Arranger and Sole Book Manager,

                     BANK OF AMERICA, NATIONAL ASSOCIATION,
                        acting through its Canada branch
                             as the Canadian Lender

                                       and

                         The Other Lenders Party Hereto

================================================================================
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
      Section                                                               Page
      -------                                                               ----

<S>                                                                         <C>
ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS...............................     1
      1.01     Defined Terms..............................................     1
      1.02     Other Interpretive Provisions..............................    27
      1.03     Accounting Terms...........................................    27
      1.04     Exchange Rates; Currency Equivalents.......................    28
      1.05     Additional Alternative Currencies..........................    29
      1.06     Change of Currency.........................................    29
      1.07     Times of Day...............................................    30
      1.08     Letter of Credit Amounts...................................    30

ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS.........................    30
      2.01     Revolving Credit Facilities and Committed Loans............    30
      2.02     Borrowings, Conversions and Continuations of Committed
               Loans......................................................    31
      2.03     Letters of Credit..........................................    34
      2.04     Swing Line Loans...........................................    43
      2.05     Security...................................................    46
      2.06     Prepayments................................................    46
      2.07     Termination or Reduction of Commitments....................    47
      2.08     Repayment of Loans.........................................    48
      2.09     Interest...................................................    48
      2.10     Fees.......................................................    49
      2.11     Computation of Interest and Fees...........................    50
      2.12     Evidence of Debt...........................................    50
      2.13     Payments Generally; Administrative Agent's Clawback........    51
      2.14     Sharing of Payments by Lenders.............................    53
      2.15     Increase in Commitments....................................    54

ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY.......................    55
      3.01     Taxes......................................................    55
      3.02     Illegality.................................................    57
      3.03     Inability to Determine Rates...............................    58
      3.04     Increased Costs............................................    58
      3.05     Compensation for Losses....................................    60
      3.06     Mitigation Obligations; Replacement of Lenders.............    61
      3.07     Survival...................................................    61

ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS.....................    61
      4.01     Conditions of Initial Credit Extension.....................    61
      4.02     Conditions to all Credit Extensions........................    64

ARTICLE V. REPRESENTATIONS AND WARRANTIES.................................    64
      5.01     Existence, Qualification and Power; Compliance with Laws...    65
      5.02     Authorization; No Contravention............................    65
      5.03     Governmental Authorization; Other Consents.................    65
      5.04     Binding Effect.............................................    65
      5.05     Financial Statements; No Material Adverse Effect; No
               Internal Control Event.....................................    65
      5.06     Litigation.................................................    66
      5.07     No Default.................................................    66
</TABLE>
<PAGE>
                          TABLE OF CONTENTS (CONTINUED)

<TABLE>
<CAPTION>
Section                                                                     Page
-------                                                                     ----

<S>                                                                         <C>
      5.08     Ownership of Property; Liens...............................    66
      5.09     Environmental Compliance...................................    66
      5.10     Insurance..................................................    67
      5.11     Taxes......................................................    67
      5.12     ERISA Compliance...........................................    67
      5.13     Subsidiaries; Equity Interests.............................    68
      5.14     Margin Regulations; Investment Company Act; Public
               Utility Holding Company Act................................    68
      5.15     Disclosure.................................................    68
      5.16     Compliance with Laws.......................................    68
      5.17     Intellectual Property; Licenses, Etc.......................    69
      5.18     Representations as to Foreign Obligors.....................    69

ARTICLE VI. AFFIRMATIVE COVENANTS.........................................    70
      6.01     Financial Statements.......................................    70
      6.02     Certificates; Other Information............................    71
      6.03     Notices....................................................    73
      6.04     Payment of Obligations.....................................    73
      6.05     Preservation of Existence, Etc.  With respect to
               Subsidiaries, other than Immaterial Subsidiaries,..........    74
      6.06     Maintenance of Properties..................................    74
      6.07     Maintenance of Insurance...................................    74
      6.08     Compliance with Laws.......................................    74
      6.09     Books and Records..........................................    74
      6.10     Inspection Rights..........................................    74
      6.11     Use of Proceeds............................................    75
      6.12     Approvals and Authorizations...............................    75
      6.13     Additional Subsidiary Guarantors...........................    75

ARTICLE VII. NEGATIVE COVENANTS...........................................    75
      7.01     Liens......................................................    75
      7.02     Investments................................................    76
      7.03     Indebtedness...............................................    77
      7.04     Fundamental Changes........................................    78
      7.05     Dispositions...............................................    78
      7.06     Restricted Payments........................................    79
      7.07     Change in Nature of Business...............................    80
      7.08     Transactions with Affiliates...............................    80
      7.09     Burdensome Agreements......................................    80
      7.10     Use of Proceeds............................................    80
      7.11     Financial Covenants........................................    80
      7.12     Capital Expenditures.......................................    81

ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES..............................    81
      8.01     Events of Default..........................................    81
      8.02     Remedies Upon Event of Default.............................    83
      8.03     Application of Funds.......................................    83

ARTICLE IX. ADMINISTRATIVE AGENT..........................................    84
      9.01     Appointment and Authority..................................    84
      9.02     Rights as a Lender.........................................    85
      9.03     Exculpatory Provisions.....................................    85
</TABLE>

                                       ii
<PAGE>
                          TABLE OF CONTENTS (CONTINUED)

<TABLE>
<CAPTION>
Section                                                                     Page
-------                                                                     ----

<S>                                                                         <C>

      9.04     Reliance by Administrative Agent...........................    86
      9.05     Delegation of Duties.......................................    86
      9.06     Resignation of Administrative Agent........................    86
      9.07     Non-Reliance on Administrative Agent and Other Lenders.....    87
      9.08     No Other Duties, Etc.......................................    87
      9.09     Administrative Agent May File Proofs of Claim..............    88
      9.10     Collateral and Guaranty Matters............................    88

ARTICLE X. MISCELLANEOUS..................................................    89
      10.01    Amendments, Etc............................................    89
      10.02    Notices; Effectiveness; Electronic Communication...........    90
      10.03    No Waiver; Cumulative Remedies.............................    92
      10.04    Expenses; Indemnity; Damage Waiver.........................    92
      10.05    Payments Set Aside.........................................    94
      10.06    Successors and Assigns.....................................    94
      10.07    Treatment of Certain Information; Confidentiality..........    98
      10.08    Right of Setoff............................................    99
      10.09    Interest Rate Limitation...................................    99
      10.10    Counterparts; Integration; Effectiveness...................    99
      10.11    Survival of Representations and Warranties.................   100
      10.12    Severability...............................................   100
      10.13    Replacement of Lenders.....................................   100
      10.14    Governing Law; Jurisdiction; Etc...........................   101
      10.15    Waiver of Jury Trial.......................................   102
      10.16    USA PATRIOT Act Notice.....................................   102
      10.17    Time is of the Essence.....................................   102
      10.18    Judgment Currency..........................................   102
      10.19    Statutory Notice...........................................   103

      SIGNATURES..........................................................   S-1
</TABLE>

                                       iii
<PAGE>
SCHEDULES

      1.01  Mandatory Cost Formulae
      2.01  Commitments and Applicable Percentages
      5.05  Supplement to Interim Financial Statements
      5.06  Litigation
      5.09  Environmental Matters
      5.11  Tax Disclosures
      5.13  Subsidiaries and Other Equity Investments
      7.01  Existing Liens
      7.03  Existing Indebtedness
      10.02 Administrative Agent's Office; Certain Addresses for Notices
      10.06 Processing and Recordation Fees
      11.01 Letters of Credit

EXHIBITS

            FORM OF

      A     Committed Loan Notice
      B     Swing Line Loan Notice
      C     Note
      D     Compliance Certificate
      E     Assignment and Assumption
      F     Subsidiary Guaranty
      G     Opinion Matters
      H     Borrowing Base Certificate
<PAGE>
                                CREDIT AGREEMENT

      This CREDIT AGREEMENT ("Agreement") is entered into as of June 29, 2005,
among The Greenbrier Companies, Inc., a Delaware corporation (the "Company"),
TrentonWorks Limited, a Nova Scotia company ("TWI," or together with the
Company, the "Borrowers" and, each a "Borrower"), each lender from time to time
a party hereto (collectively, the "Lenders" and individually, a "Lender"), BANK
OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and
BANK OF AMERICA, NATIONAL ASSOCIATION, acting through its Canada branch (a
"Lender" and the "Canadian Lender").

      The Company and TWI have requested that the Lenders provide each of them
with a revolving credit facility, and the Lenders are willing to do so on the
terms and conditions set forth herein. The facility extended to the Company
represents a consolidation and restructure of existing credit facilities held by
Subsidiaries of the Company, while the facility extended to TWI represents a
renewal and amendment of an existing facility extended by the Canadian Lender to
TWI.

      In consideration of the mutual covenants and agreements herein contained,
the parties hereto covenant and agree as follows:

                                   ARTICLE I.
                        DEFINITIONS AND ACCOUNTING TERMS

      1.01 DEFINED TERMS. As used in this Agreement, the following terms shall
have the meanings set forth below:

      "Account" has the meaning provided in the Uniform Commercial Code in
effect in Oregon as of the Closing Date.

      "Administrative Agent" means Bank of America in its capacity as
administrative agent under any of the Loan Documents, or any successor
administrative agent.

      "Administrative Agent's Office" means, with respect to any currency, the
Administrative Agent's address and, as appropriate, account as set forth on
Schedule 10.02 with respect to such currency, or such other address or account
with respect to such currency as the Administrative Agent may from time to time
notify to the Company and the Lenders.

      "Administrative Questionnaire" means an Administrative Questionnaire in a
form supplied by the Administrative Agent.

      "Affiliate" means, with respect to any Person, another Person that
directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified.

      "Aggregate Commitments" means the Commitments of all the Lenders.

      "Agreement" means this Credit Agreement.

                                       1
<PAGE>
      "Alternative Currency" means each of the Euro, the Mexican Peso, the
Canadian Dollar, Sterling, and each other currency (other than Dollars) that is
approved in accordance with Section 1.05.

      "Alternative Currency Equivalent" means, at any time, with respect to any
amount denominated in Dollars, or in Canadian Dollars with respect to the
Canadian Revolving Credit Facility, the equivalent amount thereof in the
applicable Alternative Currency as determined by the Administrative Agent or the
L/C Issuer, as the case may be, at such time on the basis of the Spot Rate
(determined in respect of the most recent Revaluation Date) for the purchase of
such Alternative Currency with Dollars, or Canadian Dollars, as the case may be.

      "Alternative Currency Sublimit" means an amount equal to the lesser of
$25,000,000 and the amount available under the U.S. Revolver Ceiling.  The
Alternative Currency Sublimit is part of, and not in addition to the U.S.
Revolving Credit Facility.

      "Applicable Percentage" means with respect to any Lender at any time, the
percentage (carried out to the ninth decimal place) of the Aggregate Commitments
represented by such Lender's Commitment at such time. If the Commitment of each
Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit
Extensions have been terminated pursuant to Section 8.02 or if the Aggregate
Commitments have expired, then the Applicable Percentage of each Lender shall be
determined based on the Applicable Percentage of such Lender most recently in
effect, giving effect to any subsequent assignments. The initial Applicable
Percentage of each Lender is set forth opposite the name of such Lender on
Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender
becomes a party hereto, as applicable. If the Commitments have been terminated
pursuant to Section 8.02, or if the Aggregate Commitments have expired, the
amount outstanding under the Canadian Revolving Credit Facility shall be
converted from Canadian dollars to Dollars as of the date of determination.
Notwithstanding the above, for all matters herein which require a vote of the
Lenders, the Voting Percentage set forth in Schedule 2.01 shall apply rather
than the Applicable Percentage.

      "Applicable Rate" means, from time to time, the following percentages per
annum, based upon the Consolidated Capitalization Ratio as set forth below:

                                 APPLICABLE RATE

                                (IN BASIS POINTS)

<TABLE>
<CAPTION>
                                          EUROCURRENCY
           CONSOLIDATED                      RATE +
 PRICING  CAPITALIZATION                   LETTERS OF     BASE RATE
  LEVEL       RATIO       COMMITMENT FEE     CREDIT        MARGIN
  -----       -----       --------------     ------        ------
<S>       <C>             <C>             <C>             <C>
           Greater than      30.0 bps      150.0 bps       0.0 bps
    1      or equal to
              57.5%

    2      Greater than      25.0 bps      125.0 bps       0.0 bps
           or equal to
            47.5% and
            less than
              57.5%
</TABLE>

                                       2
<PAGE>
<TABLE>
<S>       <C>             <C>             <C>             <C>
    3      Greater than     20.0 bps       100.0 bps       0.0 bps
           or equal to
            37.5% and
            less than
              47.5%

    4       Less than       20.0 bps        87.5 bps       0.0 bps
              37.5%
</TABLE>

      Any increase or decrease in the Applicable Rate resulting from a change in
the Consolidated Capitalization Ratio shall become effective as of the first
Business Day immediately following the date a Compliance Certificate is
delivered pursuant to Section 6.02(b); provided, however, that if a Compliance
Certificate is not delivered when due in accordance with such Section, then
Pricing Level 1 shall apply as of the first Business Day after the date on which
such Compliance Certificate was required to have been delivered and Pricing
Level 1 shall remain in effect until such time as the Compliance Certificate has
been delivered pursuant to Section 6.02(b). The Applicable Rate in effect from
the Closing Date through delivery of the first Compliance Certificate shall be
determined based upon Pricing Level 1.

      "Applicable Time" means, with respect to any borrowings and payments in
any Alternative Currency, the local time in the place of settlement for such
Alternative Currency as may be determined by the Administrative Agent or the L/C
Issuer, as the case may be, to be necessary for timely settlement on the
relevant date in accordance with normal banking procedures in the place of
payment.

      "Approved Fund" means any Fund that is administered or managed by (a) a
Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an
entity that administers or manages a Lender.

      "Arranger" means Banc of America Securities LLC, in its capacity as sole
lead arranger and sole book manager.

      "Assignee Group" means two or more Eligible Assignees that are Affiliates
of one another or two or more Approved Funds managed by the same investment
advisor.

      "Assignment and Assumption" means an assignment and assumption entered
into by a Lender and an Eligible Assignee (with the consent of any party whose
consent is required by Section 10.06(b), and accepted by the Administrative
Agent, in substantially the form of Exhibit E or any other form approved by the
Administrative Agent.

      "Attorney Costs" means and includes all reasonable fees, expenses and
disbursements of any law firm or other external counsel and, without
duplication, the allocated reasonable cost of internal legal services and all
expenses and disbursements of internal counsel.

      "Attributable Indebtedness" means, on any date, (a) in respect of any
capital lease of any Person, the capitalized amount thereof that would appear on
a balance sheet of such Person prepared as of such date in accordance with GAAP,
and (b) in respect of any Synthetic Lease Obligation, the capitalized amount of
the remaining lease payments under the relevant lease that

                                       3
<PAGE>
would appear on a balance sheet of such Person prepared as of such date in
accordance with GAAP, in each case (a) and (b) if such lease were accounted for
as a capital lease.

      "Audited Financial Statements" means the audited consolidated balance
sheet of the Company and its Subsidiaries for the fiscal year ended August 31,
2004, and the related consolidated statements of income or operations,
stockholders' equity and cash flows for such fiscal year of the Company and its
Subsidiaries, including the notes thereto.

      "Availability Period" means the period from and including the Closing Date
to the earliest of (a) the Maturity Date, (b) the date of termination of the
Aggregate Commitments pursuant to Section 2.06, and (c) the date of termination
of the Commitment of each Lender to make Loans and of the obligation of the L/C
Issuer to make L/C Credit Extensions pursuant to Section 8.02.

      "BBRM" means Babcock and Brown Rail Management LLC, a Delaware limited
liability company.

      "Bank of America" means Bank of America, N.A. and its successors.

      "Base Rate" means for any day a fluctuating rate per annum equal to the
higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest
in effect for such day as publicly announced from time to time by Bank of
America as its "prime rate." The "prime rate" is a rate set by Bank of America
based upon various factors including Bank of America's costs and desired return,
general economic conditions and other factors, and is used as a reference point
for pricing some loans, which may be priced at, above, or below such announced
rate. Any change in such rate announced by Bank of America shall take effect at
the opening of business on the day specified in the public announcement of such
change.

      "Base Rate Committed Loan" means a Committed Loan that is a Base Rate
Loan.

      "Base Rate Loan" means a Loan that bears interest based on the Base Rate.
All Base Rate Loans shall be denominated in Dollars.

      "Borrower" and "Borrowers" each has the meaning specified in the
introductory paragraph hereto.

      "Borrower Materials" has the meaning specified in Section 6.02.

      "Borrowing" means a Committed Borrowing, a Swing Line Borrowing, or an
Overdraft, as the context may require.

      "Borrowing Base Certificate" means a certificate in a form attached as
Exhibit H or other form reasonably acceptable to the Administrative Agent, which
calculates both the U.S. Borrowing Base and Canadian Borrowing Base as of any
date of determination.

      "Business Day" means any day other than a Saturday, Sunday or other day on
which commercial banks are authorized to close under the Laws of, or are in fact
closed in, the state where the Administrative Agent's Office with respect to
Obligations denominated in Dollars is

                                       4
<PAGE>
located, or the applicable state in Canada with respect to the Canadian
Revolving Credit Facility, and:

            (a) if such day relates to any interest rate settings as to a
      Eurocurrency Rate Loan denominated in Dollars, any fundings,
      disbursements, settlements and payments in Dollars in respect of any such
      Eurocurrency Rate Loan, or any other dealings in Dollars to be carried out
      pursuant to this Agreement in respect of any such Eurocurrency Rate Loan,
      means any such day on which dealings in deposits in Dollars are conducted
      by and between banks in the London interbank eurodollar market;

            (b) if such day relates to any interest rate settings as to a
      Eurocurrency Rate Loan denominated in Euro, any fundings, disbursements,
      settlements and payments in Euro in respect of any such Eurocurrency Rate
      Loan, or any other dealings in Euro to be carried out pursuant to this
      Agreement in respect of any such Eurocurrency Rate Loan, means a TARGET
      Day;

            (c) if such day relates to any interest rate settings as to a
      Eurocurrency Rate Loan denominated in a currency other than Dollars or
      Euro, means any such day on which dealings in deposits in the relevant
      currency are conducted by and between banks in the London or other
      applicable offshore interbank market for such currency; and

            (d) if such day relates to any fundings, disbursements, settlements
      and payments in a currency other than Dollars or Euro in respect of a
      Eurocurrency Rate Loan denominated in a currency other than Dollars or
      Euro, or any other dealings in any currency other than Dollars or Euro to
      be carried out pursuant to this Agreement in respect of any such
      Eurocurrency Rate Loan (other than any interest rate settings), means any
      such day on which banks are open for foreign exchange business in the
      principal financial center of the country of such currency.

      "Canadian Borrowing Base" means, as of any date of determination, with
respect to both the assets of TWI and any assets of the Company and the
Subsidiary Guarantors which are not required under the U.S. Borrowing Base to
support advances under the U.S. Revolving Credit Facility, the sum of (i) 80% of
the Canadian Dollar amount of Eligible Accounts, (ii) 50% of the Canadian Dollar
amount of Eligible Inventory, and (iii) 50% of the Canadian Dollar amount of
Eligible Property, Plant and Equipment.

      "Canadian Dollar" or "CDN$" means lawful money of Canada.

      "Canadian Dollar Equivalent" means at any time with regard to a Letter of
Credit issued under the Canadian Revolving Credit Facility, (a) with respect to
any amount denominated in Canadian Dollars, such amount, and (b) with respect to
any amount denominated in any Alternative Currency, the equivalent amount
thereof in Canadian Dollars as determined by the Canadian Lender, at such time
on the basis of the Spot Rate (determined in respect of the most recent
Revaluation Date) for the purchase of Canadian Dollars with such Alternative
Currency.

      "Canadian GAAP" means generally accepted accounting principles in Canada
set forth in the opinions and pronouncements of the Canadian Institute of
Chartered Accountants or such other principles as may be approved by a
significant segment of the accounting profession in

                                       5
<PAGE>
Canada, that are applicable to the circumstances as of the date of
determination, consistently applied.

      "Canadian Lender" has the meaning specified in the introductory paragraph
hereto.

      "Canadian Letter of Credit Sublimit" means an amount equal to the lesser
of CDN$5,000,000 or the amount available under the Canadian Revolver Ceiling.
The Canadian Letter of Credit Sublimit is part of, and not in addition to, the
Canadian Revolving Credit Facility.

      "Canadian Revolving Credit Facility" has the meaning provided in Section
2.01(a)(ii).

      "Canadian Revolver Ceiling" means the amount that is the lesser of (a)
CDN$30,000,000; or (b) the amount available under the Canadian Borrowing Base.

      "Cash Collateralize" has the meaning specified in Section 2.03(g).

      "Change in Law" means the occurrence, after the date of this Agreement, of
any of the following: (a) the adoption or taking effect of any law, rule,
regulation or treaty, (b) any change in any law, rule, regulation or treaty or
in the administration, interpretation or application thereof by any Governmental
Authority or (c) the making or issuance of any request, guideline or directive
(whether or not having the force of law) by any Governmental Authority.

      "Change of Control" means an event or series of events by which:

            (a) any "person" or "group" (as such terms are used in Sections
      13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any
      employee benefit plan of such person or its subsidiaries, and any person
      or entity acting in its capacity as trustee, agent or other fiduciary or
      administrator of any such plan), other than the Excluded Affiliates,
      becomes the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under
      the Securities Exchange Act of 1934, except that a person or group shall
      be deemed to have "beneficial ownership" of all securities that such
      person or group has the right to acquire (such right, an "option right"),
      whether such right is exercisable immediately or only after the passage of
      time), directly or indirectly, of 35% or more of the equity securities of
      the Company entitled to vote for members of the board of directors or
      equivalent governing body of the Company on a fully-diluted basis (and
      taking into account all such securities that such person or group has the
      right to acquire pursuant to any option right);

            (b) during any period of 24 consecutive months, a majority of the
      members of the board of directors or other equivalent governing body of
      the Company cease to be composed of individuals (i) who were members of
      that board or equivalent governing body on the first day of such period,
      (ii) whose election or nomination to that board or equivalent governing
      body was approved by individuals referred to in clause (i) above
      constituting at the time of such election or nomination at least a
      majority of that board or equivalent governing body or (iii) whose
      election or nomination to that board or other equivalent governing body
      was approved by individuals referred to in clauses (i) and (ii) above
      constituting at the time of such election or nomination at least a
      majority of that

                                       6
<PAGE>
      board or equivalent governing body (excluding, in the case of both clause
      (ii) and clause (iii), any individual whose initial nomination for, or
      assumption of office as, a member of that board or equivalent governing
      body occurs as a result of an actual or threatened solicitation of proxies
      or consents for the election or removal of one or more directors by any
      person or group other than a solicitation for the election of one or more
      directors by or on behalf of the board of directors); or

            (c) any Person or two or more Persons acting in concert shall have
      acquired by contract or otherwise, or shall have entered into a contract
      or arrangement that, upon consummation thereof, will result in its or
      their acquisition of the power to exercise, directly or indirectly,
      Control over the management or policies of the Company.

      "Closing Date" means the first date all the conditions precedent in
Section 4.01 are satisfied or waived in accordance with Section 10.01.

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

      "Collateral" means any and all assets and rights and interests in or to
property of TWI and each of the Subsidiary Guarantors, whether tangible or
intangible, in which a Lien is granted or purported to be granted pursuant to
the Loan Documents.

      "Commitment" means, as to each Lender, its obligation to (a) make
Committed Loans to the Borrowers pursuant to Section 2.01, (b) purchase
participations in L/C Obligations, and (c) purchase participations in Swing Line
Loans, in an aggregate principal amount at any one time outstanding not to
exceed the Dollar or Canadian Dollar amount set forth opposite such Lender's
name on Schedule 2.01 or in the Assignment and Assumption pursuant to which such
Lender becomes a party hereto, as applicable, as such amount may be adjusted
from time to time in accordance with this Agreement.

      "Committed Borrowing" means a borrowing consisting of simultaneous
Committed Loans of the same Type, in the same currency and, in the case of
Eurocurrency Rate Loans, having the same Interest Period made by each of the
Lenders pursuant to Section 2.01.

      "Committed Loan" has the meaning specified in Section 2.01.

      "Committed Loan Notice" means a notice of (a) a Committed Borrowing, (b) a
conversion of Committed Loans from one Type to the other, or (c) a continuation
of Eurocurrency Rate Loans, pursuant to Section 2.02(a), which, if in writing,
shall be substantially in the form of Exhibit A.

      "Company" has the meaning specified in the introductory paragraph hereto.

      "Compliance Certificate" means a certificate substantially in the form of
Exhibit D.

      "Consolidated Capitalization Ratio" means, as of any date of
determination, the ratio of (a) Consolidated Funded Indebtedness as of such date
to (b) Consolidated Funded Indebtedness plus Stockholders' Equity.

                                       7
<PAGE>
      "Consolidated EBITDA" means, for any period, for the Company and its
Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income
for such period plus (a) the following to the extent deducted in calculating
such Consolidated Net Income: (i) Consolidated Interest Charges for such period,
(ii) the provision for Federal, state, local and foreign income taxes payable by
the Company and its Subsidiaries for such period, (iii) depreciation and
amortization expense, (iv) other non-recurring expenses of the Company and its
Subsidiaries reducing such Consolidated Net Income which do not represent a cash
item in such period or any future period, and minus (b) the following to the
extent included in calculating such Consolidated Net Income: (i) Federal, state,
local and foreign income tax credits of the Company and its Subsidiaries for
such period and (ii) any other non-recurring income of the Company and its
Subsidiaries increasing such Consolidated Net Income which does not represent a
cash item in such period or any future period.

      "Consolidated Fixed Charge Coverage Ratio" means, as of any date of
determination, the ratio of (a) Consolidated EBITDA plus rent expense for the
period of the four prior fiscal quarters ending on such date to (b) Consolidated
Interest Charges plus rent expense for such period. Solely for purposes of this
definition, "rent expense" shall include operating lease expense. In addition,
solely for purposes of this definition and in the sole discretion of the
Company, Consolidated EBITDA and Consolidated Interest Charges shall include
pro-forma adjustments to incorporate the financial results of any entity
acquired during the subject period by the Company or its Subsidiaries. Finally,
any prepayment fees, swap expenses or breakage fees associated with the
prepayment of debt with the proceeds of the Senior Debt Offering shall be
excluded from the denominator for purposes of this ratio.

      "Consolidated Funded Indebtedness" means, as of any date of determination,
the sum of all Indebtedness of the Company and its Subsidiaries on a
consolidated basis that appear on the consolidated balance sheet of the Company
and its Subsidiaries under the following line items: revolving notes, notes
payable and any other funded Indebtedness that may be classified under any
future line item on the consolidated balance sheet of the Company and its
Subsidiaries.

      "Consolidated Interest Charges" means, for any period, for the Company and
its Subsidiaries on a consolidated basis, the sum of (a) all interest, premium
payments, debt discount, fees, prepayment fees, Swap expenses or breakage fees,
charges and related expenses of the Company and its Subsidiaries in connection
with borrowed money (including capitalized interest) or in connection with the
deferred purchase price of assets, in each case to the extent treated as
interest in accordance with GAAP, and (b) the portion of rent expense of the
Company and its Subsidiaries with respect to such period under capital leases
that is treated as interest in accordance with GAAP.

      "Consolidated Net Income" means, for any period, for the Company and its
Subsidiaries on a consolidated basis, the net income of the Company and its
Subsidiaries (excluding extraordinary gains but including extraordinary losses)
for that period.

      "Consolidated Tangible Net Worth" means, as of any date of determination,
for the Company and its Subsidiaries on a consolidated basis, Stockholders'
Equity of the Company and its Subsidiaries on that date minus the Intangible
Assets of the Company and its Subsidiaries on that date.

                                       8
<PAGE>
      "Contractual Obligation" means, as to any Person, any provision of any
security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is bound.

      "Control" means the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of a Person, whether
through the ability to exercise voting power, by contract or otherwise.
"Controlling" and "Controlled" have meanings correlative thereto.

      "Credit Extension" means each of the following: (a) a Borrowing and (b) an
L/C Credit Extension.

      "Debtor Relief Laws" means the Bankruptcy Code of the United States, and
all other liquidation, conservatorship, bankruptcy, assignment for the benefit
of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief Laws of the United States or other
applicable jurisdictions within the United States from time to time in effect
and affecting the rights of creditors generally, as well as the Bankruptcy and
Insolvency Act (Canada), and the Companies Creditors Restructuring Act (Canada).

      "Default" means any event or condition that constitutes an Event of
Default or that, with the giving of any notice, the passage of time, or both,
would be an Event of Default.

      "Default Rate" means (a) when used with respect to Obligations other than
Letter of Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the
Applicable Rate, if any, applicable to Base Rate Loans plus (iii) 2% per annum;
provided, however, that with respect to a Eurocurrency Rate Loan, the Default
Rate shall be an interest rate equal to the interest rate (including any
Applicable Rate and any Mandatory Cost) otherwise applicable to such Loan plus
2% per annum, and (b) when used with respect to Letter of Credit Fees, a rate
equal to the Applicable Rate plus 2% per annum.

      "Defaulting Lender" means any Lender that (a) has failed to fund any
portion of the Committed Loans, participations in L/C Obligations or
participations in Swing Line Loans required to be funded by it hereunder when
required to be funded by it hereunder, (b) has otherwise failed to pay over to
the Administrative Agent or any other Lender any other amount required to be
paid by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute, or (c) has been deemed insolvent or become the
subject of a bankruptcy or insolvency proceeding.

      "Disposition" or "Dispose" means the sale, transfer, license, lease or
other disposition (including any sale and leaseback transaction) of any property
by any Person, including any sale, assignment, transfer or other disposal, with
or without recourse, of any notes or accounts receivable or any rights and
claims associated therewith.

      "Dollar" and "$" mean lawful money of the United States.

      "Dollar Equivalent" means, at any time, (a) with respect to any amount
denominated in Dollars, such amount, and (b) with respect to any amount
denominated in any Alternative Currency, the equivalent amount thereof in
Dollars as determined by the Administrative Agent or

                                       9
<PAGE>
the L/C Issuer, as the case may be, at such time on the basis of the Spot Rate
(determined in respect of the most recent Revaluation Date) for the purchase of
Dollars with such Alternative Currency.

      "Domestic Subsidiary" means any Subsidiary that is organized under the
laws of any political subdivision of the United States.

      "Eligible Account" means an Account owned by the Borrower or any
Subsidiary Guarantor or Subsidiary thereof which satisfies all of the following
requirements:

            (a) The Account is a genuine obligation resulting from the sale of
      goods or services by the Borrower or any Subsidiary Guarantor to a Person
      other than a Subsidiary in the ordinary course of the business which have
      been accepted by the account debtor.

            (b) The Account is subject to a first priority perfected Lien to
      secure the Obligations.

            (c) There are no conditions which must be satisfied before the
      Borrower or any Subsidiary Guarantor or Subsidiary thereof is entitled to
      receive payment of the Account.

            (d) The account debtor has not asserted in writing any defense to
      payment and has not asserted in writing any counterclaim or offset against
      the Borrower or any Subsidiary.

            (e) To the extent any credit balance exists in favor of the account
      debtor, such credit balance has been deducted from the Account balance.

            (g) Except with respect to car hire receivables, the Borrower or any
      Subsidiary Guarantor or Subsidiary thereof has sent an invoice or
      statement to the account debtor in the amount of the Account.

      "Eligible Assignee" means (a) a Lender; (b) an Affiliate of a Lender; (c)
an Approved Fund; and (d) any other Person (other than a natural person)
approved by (i) the Administrative Agent, the L/C Issuer and the Swing Line
Lender, and (ii) unless an Event of Default has occurred and is continuing, the
Company (each such approval not to be unreasonably withheld or delayed);
provided that notwithstanding the foregoing, "Eligible Assignee" shall not
include the Company or any of the Company's Affiliates or Subsidiaries.

      "Eligible Inventory" means the Dollar value of Inventory, including raw
materials, work-in-process, and finished goods, valued at the lower of cost (on
a FIFO basis) or market value, in accordance with GAAP or Canadian GAAP, as
applicable, which satisfies all of the following requirements:

            (a) The Inventory is owned by the Borrower or any Subsidiary
      Guarantor or Subsidiary thereof and is subject to a first priority
      perfected Lien to secure the Obligations.

                                       10
<PAGE>
            (b) The Inventory is held for sale in the business of the Borrower
      or any Subsidiary Guarantor or Subsidiary thereof, is of good and
      merchantable title, and is not obsolete, defective or unsalable.

            (c) The Inventory is covered by insurance to any extent required by
      any Loan Document.

            (d) The Inventory is not subject to any licensing agreement,
      trademark or other proprietary right to which the Borrower is not subject
      or has the benefit of, and which would prohibit or restrict its sale by
      the Lender to third parties.

            (e) The Inventory is stored in the United States or Canada.

      "Eligible Property, Plant and Equipment" means certain real property,
along with related equipment and fixtures, of the Company, TWI, or the
Subsidiary Guarantors, which has been pledged to the Lenders as security for the
Obligations and against which the Lenders have obtained a first priority,
perfected security interest.

      "EMU" means the economic and monetary union in accordance with the Treaty
of Rome 1957, as amended by the Single European Act 1986, the Maastricht Treaty
of 1992 and the Amsterdam Treaty of 1998.

      "EMU Legislation" means the legislative measures of the European Council
for the introduction of, changeover to or operation of a single or unified
European currency.

      "Environmental Laws" means any and all Federal, state, local, and foreign
statutes, laws, regulations, ordinances, rules, judgments, orders, decrees,
permits, concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including those related to
hazardous substances or wastes, air emissions and discharges to waste or public
systems.

      "Environmental Liability" means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of the Company, any other Loan Party or any of their
respective Subsidiaries directly or indirectly resulting from or based upon (a)
violation by the Company or any Subsidiary of any Environmental Law, (b) the
generation, use, handling, transportation, storage, treatment or disposal by the
Company or any Subsidiary of any Hazardous Materials, (c) exposure to any
Hazardous Materials, (d) the release or threatened release by the Company or any
Subsidiary of any Hazardous Materials into the environment or (e) any contract,
agreement or other consensual arrangement pursuant to which liability is assumed
or imposed with respect to any of the foregoing.

      "Equity Interests" means, with respect to any Person, all of the shares of
capital stock of (or other ownership or profit interests in) such Person, all of
the warrants, options or other rights for the purchase or acquisition from such
Person of shares of capital stock of (or other ownership or profit interests in)
such Person, all of the securities convertible into or exchangeable for shares
of capital stock of (or other ownership or profit interests in) such Person or
warrants, rights or

                                       11
<PAGE>
options for the purchase or acquisition from such Person of such shares (or such
other interests), and all of the other ownership or profit interests in such
Person (including partnership, member or trust interests therein), whether
voting or nonvoting, and whether or not such shares, warrants, options, rights
or other interests are outstanding on any date of determination.

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

      "ERISA Affiliate" means any trade or business (whether or not
incorporated) under common control with the Company within the meaning of
Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for
purposes of provisions relating to Section 412 of the Code).

      "ERISA Event" means (a) a Reportable Event with respect to a Pension Plan;
(b) a withdrawal by the Company or any ERISA Affiliate from a Pension Plan
subject to Section 4063 of ERISA during a plan year in which it was a
substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation
of operations that is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by the Company or any ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is
in reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Plan amendment as a termination under Sections 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension
Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds
under Section 4042 of ERISA for the termination of, or the appointment of a
trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the
imposition of any liability under Title IV of ERISA, other than for PBGC
premiums due but not delinquent under Section 4007 of ERISA, upon the Company or
any ERISA Affiliate.

      "Euro" and "EUR" mean the lawful currency of the Participating Member
States introduced in accordance with the EMU Legislation.

      "Eurocurrency Rate" means, for any Interest Period with respect to a
Eurocurrency Rate Loan, the rate per annum equal to the British Bankers
Association LIBOR Rate ("BBA LIBOR"), as published by Reuters (or other
commercially available source providing quotations of BBA LIBOR as designated by
the Administrative Agent from time to time) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, for
deposits in the relevant currency (for delivery on the first day of such
Interest Period) with a term equivalent to such Interest Period. If such rate is
not available at such time for any reason, then the "Eurocurrency Rate" for such
Interest Period shall be the rate per annum determined by the Administrative
Agent to be the rate at which deposits in the relevant currency for delivery on
the first day of such Interest Period in Same Day Funds in the approximate
amount of the Eurocurrency Rate Loan being made, continued or converted by Bank
of America and with a term equivalent to such Interest Period would be offered
by Bank of America's London Branch (or other Bank of America branch or
Affiliate) to major banks in the London or other offshore interbank market for
such currency at their request at approximately 11:00 a.m. (London time) two
Business Days prior to the commencement of such Interest Period.

      "Eurocurrency Rate Loan" means a Committed Loan that bears interest at a
rate based on the Eurocurrency Rate. Eurocurrency Rate Loans may be denominated
in Dollars or in an

                                       12
<PAGE>
Alternative Currency. All Committed Loans denominated in an Alternative Currency
must be Eurocurrency Rate Loans.

      "Event of Default" has the meaning specified in Section 8.01.

      "Excluded Affiliates" means Mr. William A. Furman, his spouse, direct
descendants, any Person Controlled by any of them and/or a trust for the
benefit of any of them.

      "Excluded Taxes" means, with respect to the Administrative Agent, any
Lender, the L/C Issuer or any other recipient of any payment to be made by or on
account of any obligation of any Borrower hereunder, (a) taxes imposed on or
measured by net income (however denominated), doing business taxes, and
franchise taxes imposed on it (in lieu of net income taxes), by any Governmental
Authority or other taxing authority, (b) any branch profits taxes imposed by the
United States or any similar tax imposed by any other jurisdiction in which such
Borrower is located and (c) in the case of a Foreign Lender (other than an
assignee pursuant to a request by the Company under Section 10.13), any
withholding tax that is imposed on amounts payable to such Foreign Lender at the
time such Foreign Lender becomes a party hereto (or designates a new Lending
Office) or is attributable to such Foreign Lender's failure or inability (other
than as a result of a Change in Law) to comply with Section 3.01(e), except to
the extent that such Foreign Lender (or its assignor, if any) was entitled, at
the time of designation of a new Lending Office (or assignment), to receive
additional amounts from the applicable Borrower with respect to such withholding
tax pursuant to Section 3.01(a).

      "Existing Credit Agreement" means, collectively, those certain credit
agreements or loan agreements, as may have been amended or modified to date,
by and between Gunderson, Inc., U.S. Bank National Association and Bank of
America, N.A.; Greenbrier Leasing Corporation, Greenbrier Railcar, Inc.,
Autostack Corporation, Union Bank of California, N.A. and Bank of America,
N.A., as lender and agent for other lenders; TrentonWorks Limited, The
Greenbrier Companies, Inc., as guarantor, and Bank of America, National
Association, acting through its Canada branch.

      "Existing Letters of Credit" means those Letters of Credit of the Company
or any Subsidiary Guarantor listed on Schedule 11.01.

      "Federal Funds Rate" means, for any day, the rate per annum equal to the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank of New York on the Business Day
next succeeding such day; provided that (a) if such day is not a Business Day,
the Federal Funds Rate for such day shall be such rate on such transactions on
the next preceding Business Day as so published on the next succeeding Business
Day, and (b) if no such rate is so published on such next succeeding Business
Day, the Federal Funds Rate for such day shall be the average rate (rounded
upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank of
America on such day on such transactions as determined by the Administrative
Agent.

      "Fee Letter" means the letter agreement, dated April 9, 2005, among the
Company, the Administrative Agent and the Arranger.

                                       13
<PAGE>
      "Foreign Lender" means, with respect to any Borrower, any Lender that is
organized under the laws of a jurisdiction other than that in which such
Borrower is resident for tax purposes. For purposes of this definition, the
United States, each State thereof and the District of Columbia shall be deemed
to constitute a single jurisdiction.

      "Foreign Obligor" means a Loan Party that is a Foreign Subsidiary.

      "Foreign Subsidiary" means any Subsidiary that is organized under the laws
of a jurisdiction other than the United States, a State thereof or the District
of Columbia.

      "FRB" means the Board of Governors of the Federal Reserve System of the
United States.

      "Fund" means any Person (other than a natural person) that is (or will be)
engaged in making, purchasing, holding or otherwise investing in commercial
loans and similar extensions of credit in the ordinary course of its business.

      "GAAP" means generally accepted accounting principles in the United States
set forth in the opinions and pronouncements of the Accounting Principles Board
and the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or such other
principles as may be approved by a significant segment of the accounting
profession in the United States, that are applicable to the circumstances as of
the date of determination, consistently applied.

      "Golden West Agreements" means the Re-marketing Agreement dated as of
November 19, 1987 among Southern Pacific Transportation Company, St. Louis
Southwestern Railway Company, Greenbrier Leasing Corporation and the
Greenbrier Railcar, Inc., the Amendment to Re-marketing Agreement among
Southern Pacific Transportation Company, St. Louis Southwestern Railway
Company, Greenbrier Leasing Corporation and Greenbrier Railcar, Inc. dated as
of November 15, 1988, the Amendment No. 2 to Re-marketing Agreement among
Southern Pacific Transportation Company, St. Louis Southwestern Railway
Company, Greenbrier Leasing Corporation and Greenbrier Railcar, Inc., and the
Amendment No. 3 to Re-marketing Agreement dated November 19, 1987 among
Southern Pacific Transportation Company, St. Louis Southwestern Railway
Company, Greenbrier Leasing Corporation and Greenbrier Railcar, Inc. dated as
of March 5, 1991, in each case as in effect on the date of this Agreement.

      "Governmental Authority" means the government of the United States,
Canada, or any other nation, or of any political subdivision thereof, whether
state or local, and any agency, authority, instrumentality, regulatory body,
court, central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government (including any supra-national bodies such as the European Union or
the European Central Bank).

      "Guarantee" means, as to any Person, any (a) any Contractual Obligation,
contingent or otherwise, of such Person guaranteeing or having the economic
effect of guaranteeing any Indebtedness or other obligation payable or
performable by another Person (the "primary obligor") in any manner, whether
directly or indirectly, and including any obligation of such

                                       14
<PAGE>
Person, direct or indirect, (i) to purchase or pay (or advance or supply funds
for the purchase or payment of) such Indebtedness or other obligation, (ii) to
purchase or lease property, securities or services for the purpose of assuring
the obligee in respect of such Indebtedness or other obligation of the payment
or performance of such Indebtedness or other obligation, (iii) to maintain
working capital, equity capital or any other financial statement condition or
liquidity or level of income or cash flow of the primary obligor so as to enable
the primary obligor to pay such Indebtedness or other obligation, or (iv)
entered into for the purpose of assuring in any other manner the obligee in
respect of such Indebtedness or other obligation of the payment or performance
thereof or to protect such obligee against loss in respect thereof (in whole or
in part), or (b) any Lien on any assets of such Person securing any Indebtedness
or other obligation of any other Person, whether or not such Indebtedness or
other obligation is assumed by such Person (or any right, contingent or
otherwise, of any holder of such Indebtedness to obtain any such Lien). The
amount of any Guarantee shall be deemed to be an amount equal to the stated or
determinable amount of the related primary obligation, or portion thereof, in
respect of which such Guarantee is made or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof as determined by the
guaranteeing Person in good faith. The term "Guarantee" as a verb has a
corresponding meaning.

      "Guaranties" means the (i) Subsidiary Guaranties of the Company's
Obligations and those of TWI, and (ii) the Company's guaranty of all Obligations
of TWI. All Guaranties, other than the Company's guaranty of the Obligations of
TWI, shall be secured.

      "Hazardous Materials" means all explosive or radioactive substances or
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos-containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

      "Immaterial Subsidiary" means, as of any date, any Restricted Subsidiary
whose total assets, as of that date, are less than $5.0 million and whose total
revenues for the most recent 12-month period does not exceed $5.0 million.

      "Indebtedness" means, as to any Person at a particular time, without
duplication, all of the following, whether or not included as indebtedness or
liabilities in accordance with GAAP:

            (a) all obligations of such Person for borrowed money and all
      obligations of such Person evidenced by bonds, debentures, notes, loan
      agreements or other similar instruments;

            (b) all direct or contingent obligations of such Person arising
      under letters of credit (including standby and commercial), bankers'
      acceptances, bank Guaranties, surety bonds and similar instruments;

            (c) net obligations of such Person under any Swap Contract;

            (d) all obligations of such Person to pay the deferred purchase
      price of property or services (other than trade accounts payable in the
      ordinary course of business

                                       15
<PAGE>
      and, in each case, not past due for more than 60 days after the date on
      which such trade account payable was created);

            (e) indebtedness (excluding prepaid interest thereon) secured by a
      Lien on property owned or being purchased by such Person (including
      indebtedness arising under conditional sales or other title retention
      agreements), whether or not such indebtedness shall have been assumed by
      such Person or is limited in recourse;

            (f) capital leases and Synthetic Lease Obligations;

            (g) all obligations of such Person to purchase, redeem, retire,
      defease or otherwise make any payment in respect of any Equity Interest in
      such Person or any other Person, valued, in the case of a redeemable
      preferred interest, at the greater of its voluntary or involuntary
      liquidation preference plus accrued and unpaid dividends; and

            (h) all Guarantees of such Person in respect of any of the
      foregoing.

      For all purposes hereof, the Indebtedness of any Person shall include the
Indebtedness of any partnership or joint venture (other than a joint venture
that is itself a corporation or limited liability company) in which such Person
is a general partner or a joint venturer, unless such Indebtedness is expressly
made non-recourse to such Person. The amount of any net obligation under any
Swap Contract on any date shall be deemed to be the Swap Termination Value
thereof as of such date. The amount of any capital lease or Synthetic Lease
Obligation as of any date shall be deemed to be the amount of Attributable
Indebtedness in respect thereof as of such date.

      "Indemnified Taxes" means Taxes other than Excluded Taxes.

      "Indemnitees" has the meaning specified in Section 10.04(b).

      "Information" has the meaning specified in Section 10.07.

      "Intangible Assets" means assets that are considered to be intangible
assets under GAAP, including customer lists, goodwill, computer software,
copyrights, trade names, trademarks, patents, franchises, licenses, unamortized
deferred charges, unamortized debt discount and capitalized research and
development costs.

      "Interest Payment Date" means, (a) as to any Loan other than a Base Rate
Loan, the last day of each Interest Period applicable to such Loan and the
Maturity Date; provided, however, that if any Interest Period for a Eurocurrency
Rate Loan exceeds three months, the respective dates that fall every three
months after the beginning of such Interest Period shall also be Interest
Payment Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan),
the last Business Day of each March, June, September and December and the
Maturity Date.

      "Interest Period" means, as to each Eurocurrency Rate Loan, the period
commencing on the date such Eurocurrency Rate Loan is disbursed or converted to
or continued as a Eurocurrency Rate Loan and ending on the date that is seven
(7) days, fourteen (14) days, one, two, three or six months thereafter, as
selected by the Company in its Committed Loan Notice or

                                       16
<PAGE>
such other period that is twelve months or less requested by the Company and
consented to by all the Lenders; provided that:

            (i) any Interest Period that would otherwise end on a day that is
      not a Business Day shall be extended to the next succeeding Business Day
      unless such Business Day falls in another calendar month, in which case
      such Interest Period shall end on the next preceding Business Day;

            (ii) any Interest Period that begins on the last Business Day of a
      calendar month (or on a day for which there is no numerically
      corresponding day in the calendar month at the end of such Interest
      Period) shall end on the last Business Day of the calendar month at the
      end of such Interest Period; and

            (iii) no Interest Period shall extend beyond the Maturity Date.

      "Internal Control Event" means a material weakness in, or fraud that
involves management or other employees who have a significant role in, the
Company's internal controls over financial reporting, in each case as described
in the Securities Laws.

      "Inventory" has the meaning provided in the Uniform Commercial Code in
effect in Oregon as of the Closing Date.

      "Investment" means, as to any Person, any direct or indirect acquisition
or investment by such Person, whether by means of (a) the purchase or other
acquisition of capital stock or other securities of another Person, (b) a loan,
advance or capital contribution to, assumption of debt of, or purchase or other
acquisition of any other debt or equity participation or interest in, another
Person, including any partnership or joint venture interest in such other
Person, or (c) the purchase or other acquisition (in one transaction or a series
of transactions) of assets of another Person that constitute a business unit.
For purposes of covenant compliance, the amount of any Investment shall be the
amount actually invested, without adjustment for subsequent increases or
decreases in the value of such Investment.

      "IP Rights" has the meaning specified in Section 5.17.

      "IRS" means the United States Internal Revenue Service.

      "ISP" means, with respect to any Letter of Credit, the "International
Standby Practices 1998" published by the Institute of International Banking Law
& Practice (or such later version thereof as may be in effect at the time of
issuance).

      "Issuer Documents" means with respect to any Letter of Credit, the Letter
of Credit Application, and any other document, agreement and instrument entered
into by the L/C Issuer and the Company (or any Subsidiary) or in favor the L/C
Issuer and relating to any such Letter of Credit.

      "Joint Venture" means a single-purpose corporation, partnership, limited
liability company, joint venture or other similar legal arrangement (whether
created by contract or conducted through a separate legal entity) now or
hereafter formed by the Company or any of its

                                       17
<PAGE>
Subsidiaries with another Person in order to conduct a common venture or
enterprise with such Person.

      "Laws" means, collectively, all international, foreign, Federal, state and
local statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.

      "L/C Advance" means, with respect to each Lender, such Lender's funding of
its participation in any L/C Borrowing in accordance with its Applicable
Percentage. All L/C Advances shall be denominated in Dollars.

      "L/C Borrowing" means an extension of credit resulting from a drawing
under any Letter of Credit which has not been reimbursed on the date when made
or refinanced as a Committed Borrowing. All L/C Borrowings shall be denominated
in Dollars, except for L/C Borrowings under the Canadian Revolving Credit
Facility, which may be denominated in Dollars, Canadian Dollars or an
Alternative Currency.

      "L/C Credit Extension" means, with respect to any Letter of Credit, the
issuance thereof or extension of the expiry date thereof, or the increase of the
amount thereof.

      "L/C Issuer" means Bank of America in its capacity as issuer of Letters of
Credit hereunder, or the Canadian Lender as issuer of Letters of Credit on
behalf of TWI, or any successor issuer of Letters of Credit hereunder.

      "L/C Obligations" means, as at any date of determination, the aggregate
amount available to be drawn under all outstanding Letters of Credit plus the
aggregate of all Unreimbursed Amounts, including all L/C Borrowings. For
purposes of computing the amount available to be drawn under any Letter of
Credit, the amount of such Letter of Credit shall be determined in accordance
with Section 1.08. For all purposes of this Agreement, if on any date of
determination a Letter of Credit has expired by its terms but any amount may
still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP,
such Letter of Credit shall be deemed to be "outstanding" in the amount so
remaining available to be drawn.

      "Lender" has the meaning specified in the introductory paragraph hereto
and, as the context requires, includes the Swing Line Lender.

      "Lending Office" means, as to any Lender, the office or offices of such
Lender described as such in such Lender's Administrative Questionnaire, or such
other office or offices as a Lender may from time to time notify the Company and
the Administrative Agent.

      "Letter of Credit" means a standby or commercial or comment letter of
credit issued hereunder and shall include the Existing Letters of Credit.
Letters of Credit may be issued in Dollars, Canadian Dollars or in an
Alternative Currency.

                                       18
<PAGE>
      "Letter of Credit Application" means an application and agreement for the
issuance or amendment of a Letter of Credit in the form from time to time in use
by the L/C Issuer.

      "Letter of Credit Expiration Date" means the day that is seven days prior
to the Maturity Date then in effect (or, if such day is not a Business Day, the
next preceding Business Day), or up to one year beyond such date provided that
the subject letter of credit is Cash Collateralized pursuant to Section
2.03(g)(iv).

      "Letter of Credit Fee" has the meaning specified in Section 2.03(i).

      "Lien" means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge, or preference,
priority or other security interest or preferential arrangement in the nature of
a security interest of any kind or nature whatsoever (including any conditional
sale or other title retention agreement, any easement, right of way or other
encumbrance on title to real property, and any financing lease having
substantially the same economic effect as any of the foregoing).

      "Loan" means an extension of credit by a Lender to a Borrower under
Article II in the form of a Committed Loan or a Swing Line Loan, and includes
advances under either the U.S. Revolving Credit Facility or the Canadian
Revolving Credit Facility.

      "Loan Documents" means this Agreement, each Note, each Issuer Document,
the Fee Letter, the Guaranties, and each security agreement, pledge, deed of
trust, mortgage or other document related to the Collateral.

      "Loan Parties" means, collectively, the Borrowers, and each Subsidiary
Guarantor.

      "Mandatory Cost" means, with respect to any period, the percentage rate
per annum determined in accordance with Schedule 1.01.

      "Material Adverse Effect" means (a) a material adverse change in, or a
material adverse effect upon, the operations, business, properties or financial
condition or results of operations of the Company or the Company and its
Subsidiaries taken as a whole; (b) a material impairment of the ability of any
Loan Party to perform its obligations under any Loan Document to which it is a
party; or (c) a material adverse effect upon the legality, validity, binding
effect or enforceability against any Loan Party of any Loan Document to which it
is a party.

      "Maturity Date" means June 29, 2010.

      "Multiemployer Plan" means any employee benefit plan of the type described
in Section 4001(a)(3) of ERISA, to which the Company or any ERISA Affiliate
makes or is obligated to make contributions, or during the preceding five plan
years, has made or been obligated to make contributions.

      "Note" means a promissory note made by a Borrower in favor of a Lender
evidencing Loans made by such Lender to such Borrower, substantially in the form
of Exhibit C.

                                       19
<PAGE>
      "Obligations" means all advances to, and debts, liabilities, obligations,
covenants and duties of, any Loan Party arising under any Loan Document, Swap
Contract, or otherwise with respect to any Loan or Letter of Credit, whether
direct or indirect (including those acquired by assumption), absolute or
contingent, due or to become due, now existing or hereafter arising and
including interest and fees that accrue after the commencement by or against any
Loan Party or any Affiliate thereof of any proceeding under any Debtor Relief
Laws naming such Person as the debtor in such proceeding, regardless of whether
such interest and fees are allowed claims in such proceeding.

      "Off-Balance Sheet Liabilities" means, with respect to any Person as of
any date of determination thereof, without duplication and to the extent not
included as a liability on the consolidated balance sheet of such Person and its
Subsidiaries in accordance with GAAP: (a) with respect to any asset
securitization transaction (including any accounts receivable purchase facility)
(i) the unrecovered investment of purchasers or transferees of assets so
transferred, and (ii) any other payment, recourse, repurchase, hold harmless,
indemnity or similar obligation of such Person or any of its Subsidiaries in
respect of assets transferred or payments made in respect thereof, other than
limited recourse provisions that are customary for transactions of such type and
that neither (x) have the effect of limiting the loss or credit risk of such
purchasers or transferees with respect to payment or performance by the obligors
of the assets so transferred nor (y) impair the characterization of the
transaction as a true sale under applicable Laws (including Debtor Relief Laws);
(b) the monetary obligations under any financing lease or so-called "synthetic,"
tax retention or off-balance sheet lease transaction which, upon the application
of any Debtor Relief Law to such Person or any of its Subsidiaries, would be
characterized as indebtedness; or (c) the monetary obligations under any sale
and leaseback transaction which does not create a liability on the consolidated
balance sheet of such Person and its Subsidiaries; or (d) any other monetary
obligation arising with respect to any other transaction which (i) is
characterized as indebtedness for tax purposes but not for accounting purposes
in accordance with GAAP or (ii) is the functional equivalent of or takes the
place of borrowing but which does not constitute a liability on the consolidated
balance sheet of such Person and its Subsidiaries (for purposes of this clause
(d), any transaction structured to provide tax deductibility as interest expense
of any dividend, coupon or other periodic payment will be deemed to be the
functional equivalent of a borrowing).

      "Organization Documents" means, (a) with respect to any corporation, the
certificate or articles of incorporation and the bylaws (or equivalent or
comparable constitutive documents with respect to any non-U.S. jurisdiction);
(b) with respect to any limited liability company, the certificate or articles
of formation or organization and operating agreement; and (c) with respect to
any partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity.

      "Other Taxes" means all present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies arising from any
payment made hereunder or

                                       20
<PAGE>
under any other Loan Document or from the execution, delivery or enforcement of,
or otherwise with respect to, this Agreement or any other Loan Document.

      "Outstanding Amount" means (i) with respect to Committed Loans on any
date, the Dollar Equivalent amount of the aggregate outstanding principal amount
thereof after giving effect to any borrowings and prepayments or repayments of
such Committed Loans occurring on such date; (ii) with respect to Swing Line
Loans on any date, the aggregate outstanding principal amount thereof after
giving effect to any borrowings and prepayments or repayments of such Swing Line
Loans occurring on such date; and (iii) with respect to any L/C Obligations on
any date, the Dollar Equivalent amount of the aggregate outstanding amount of
such L/C Obligations on such date after giving effect to any L/C Credit
Extension occurring on such date and any other changes in the aggregate amount
of the L/C Obligations as of such date, including as a result of any
reimbursements by the Company of Unreimbursed Amounts.

      "Overdraft" means an overdraft on a deposit account maintained by TWI with
the Canadian Lender.

      "Overnight Rate" means, for any day, (a) with respect to any amount
denominated in Dollars, the greater of (i) the Federal Funds Rate and (ii) an
overnight rate determined by the Administrative Agent, the L/C Issuer, or the
Swing Line Lender, as the case may be, in accordance with banking industry rules
on interbank compensation, and (b) with respect to any amount denominated in an
Alternative Currency, the rate of interest per annum at which overnight deposits
in the applicable Alternative Currency, in an amount approximately equal to the
amount with respect to which such rate is being determined, would be offered for
such day by a branch or Affiliate of Bank of America in the applicable offshore
interbank market for such currency to major banks in such interbank market.

      "Participant" has the meaning specified in Section 10.06(d).

      "Participating Member State" means each state so described in any EMU
Legislation.

      "PBGC" means the Pension Benefit Guaranty Corporation.

      "Pension Plan" means any "employee pension benefit plan" (as such term is
defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is
subject to Title IV of ERISA and is sponsored or maintained by the Company or
any ERISA Affiliate or to which the Company or any ERISA Affiliate contributes
or has an obligation to contribute, or in the case of a multiple employer or
other plan described in Section 4064(a) of ERISA, has made contributions at any
time during the immediately preceding five plan years.

      "Perfected Lease Assets" means those certain lease-related assets,
including, but not limited to, rail cars, marine barges and other surface
transportation equipment, and related chattel paper, of Borrowers, or of
Subsidiary Guarantors, which have been pledged to the Lenders as security for
the Obligations, and against which the Lenders have obtained a first priority,
perfected security interest.

      "Person" means any natural person, corporation, limited liability company,
trust, joint venture, association, company, partnership, Governmental Authority
or other entity.

                                       21
<PAGE>
      "Plan" means any "employee benefit plan" (as such term is defined in
Section 3(3) of ERISA) established by the Company or, with respect to any such
plan that is subject to Section 412 of the Code or Title IV of ERISA, any ERISA
Affiliate.

      "Platform" has the meaning specified in Section 6.02.

      "Register" has the meaning specified in Section 10.06(c).

      "Registered Public Accounting Firm" has the meaning specified in the
Securities Laws and shall be independent of the Company as prescribed by the
Securities Laws.

      "Related Parties" means, with respect to any Person, such Person's
Affiliates and the partners, directors, officers, employees, agents and advisors
of such Person and of such Person's Affiliates.

      "Reportable Event" means any of the events set forth in Section 4043(c) of
ERISA, other than events for which the 30 day notice period has been waived.

      "Request for Credit Extension" means (a) with respect to a Borrowing,
conversion or continuation of Committed Loans, a Committed Loan Notice, (b) with
respect to an L/C Credit Extension, a Letter of Credit Application, and (c) with
respect to a Swing Line Loan, a Swing Line Loan Notice.

      "Required Lenders" means, as of any date of determination, Lenders having
more than 50% of the Aggregate Commitments or, if the commitment of each Lender
to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions
have been terminated pursuant to Section 8.02, Lenders holding in the aggregate
more than 50% of the Total Outstandings (with the aggregate amount of each
Lender's risk participation and funded participation in L/C Obligations and
Swing Line Loans being deemed "held" by such Lender for purposes of this
definition); provided that the Commitment of, and the portion of the Total
Outstandings held or deemed held by, any Defaulting Lender shall be excluded for
purposes of making a determination of Required Lenders and deemed to equal zero.
For purposes of this definition, and calculation of the requisite percentage,
the Canadian Revolving Credit Facility shall be deemed to constitute
$20,000,000, rather than CDN$25,000,000. If the Commitments have been terminated
pursuant to Section 8.02, or if the Aggregate Commitments have expired, the
amount outstanding under the Canadian Revolving Credit Facility shall be
converted from Canadian dollars to Dollars as of the date of determination.
Notwithstanding the above and except as otherwise provided in this Agreement,
the unanimous consent of all Lenders shall be required with respect to (i)
increases of the Aggregate Commitments, (ii) reductions of interest or fees,
(iii) extensions of scheduled maturities or payment due dates, or (iv) releases
of all or substantially all of the collateral or the Guarantors from their
obligations under the Guaranties.

      "Responsible Officer" means the chief executive officer, president, vice
president, chief financial officer, controller, secretary or assistant
secretary, treasurer or assistant treasurer of a Loan Party. Any document
delivered hereunder that is signed by a Responsible Officer of a Loan Party
shall be conclusively presumed to have been authorized by all necessary
corporate, partnership and/or other action on the part of such Loan Party and
such Responsible Officer shall be conclusively presumed to have acted on behalf
of such Loan Party.

                                       22
<PAGE>
      "Restricted Payment" means any dividend or other distribution (whether in
cash, securities or other property) with respect to any capital stock or other
Equity Interest of the Company or any Subsidiary, or any payment (whether in
cash, securities or other property), including any sinking fund or similar
deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any such capital stock or other Equity Interest,
or on account of any return of capital to the Company's stockholders, partners
or members (or the equivalent Person thereof) other than dividends or
distributions payable to a Borrower or a Subsidiary Guarantor.

      "Restricted Subsidiary" means a Subsidiary of the Company that is not a
Subsidiary Guarantor.

      "Revaluation Date" means (a) with respect to any Loan, each of the
following: (i) each date of a Borrowing of a Eurocurrency Rate Loan denominated
in an Alternative Currency, and (ii) each date of a continuation of a
Eurocurrency Rate Loan denominated in an Alternative Currency pursuant to
Section 2.02, and (iii) such additional dates as the Administrative Agent shall
determine or the Required Lenders shall require; and (b) with respect to any
Letter of Credit, each of the following: (i) each date of issuance of a Letter
of Credit denominated in an Alternative Currency, (ii) each date of an amendment
of any such Letter of Credit having the effect of increasing the amount thereof
(solely with respect to the increased amount), (iii) each date of any payment by
the L/C Issuer under any Letter of Credit denominated in an Alternative
Currency, and (iv) such additional dates as the Administrative Agent or the L/C
Issuer shall determine or the Required Lenders shall require.

      "Same Day Funds" means (a) with respect to disbursements and payments in
Dollars, immediately available funds, and (b) with respect to disbursements and
payments in an Alternative Currency, same day or other funds as may be
determined by the Administrative Agent or the L/C Issuer, as the case may be, to
be customary in the place of disbursement or payment for the settlement of
international banking transactions in the relevant Alternative Currency.

      "Sarbanes-Oxley" means the Sarbanes-Oxley Act of 2002.

      "SEC" means the Securities and Exchange Commission, or any Governmental
Authority succeeding to any of its principal functions.

      "Securities Laws" means the Securities Act of 1933, the Securities
Exchange Act of 1934, Sarbanes-Oxley and the applicable accounting and auditing
principles, rules, standards and practices promulgated, approved or incorporated
by the SEC or the Public Company Accounting Oversight Board, as each of the
foregoing may be amended and in effect on any applicable date hereunder.

      "Senior Debt Offering" means that certain offering of $175,000,000 in 8
3/8% Senior Notes due 2015, which closed on May 11, 2005.

      "Stockholders' Equity" means, as of any date of determination,
consolidated stockholders' equity of the Company and its Subsidiaries as of that
date determined in accordance with GAAP.

                                       23
<PAGE>
      "Special Notice Currency" means at any time an Alternative Currency, other
than the currency of a country that is a member of the Organization for Economic
Cooperation and Development at such time located in North America or Europe.

      "Spot Rate" for a currency means the rate determined by the Administrative
Agent or the L/C Issuer, as applicable, to be the rate quoted by the Person
acting in such capacity as the spot rate for the purchase by such Person of such
currency with another currency through its principal foreign exchange trading
office at approximately 8:00 a.m. on the date two Business Days prior to the
date as of which the foreign exchange computation is made; provided that the
Administrative Agent or the L/C Issuer may obtain such spot rate from another
financial institution designated by the Administrative Agent or the L/C Issuer
if the Person acting in such capacity does not have as of the date of
determination a spot buying rate for any such currency; and provided further
that the L/C Issuer may use such spot rate quoted on the date as of which the
foreign exchange computation is made in the case of any Letter of Credit
denominated in an Alternative Currency.

      "Sterling" and "L" means the lawful currency of the United Kingdom.

      "Subsidiary" of a Person means a corporation, partnership, joint venture,
limited liability company or other business entity of which a majority of the
shares of securities or other interests having ordinary voting power for the
election of directors or other governing body (other than securities or
interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise
controlled, directly, or indirectly through one or more intermediaries, or both,
by such Person. Unless otherwise specified, all references herein to a
"Subsidiary" or to "Subsidiaries" shall refer to a Subsidiary or Subsidiaries of
the Company.

      "Subsidiary Guarantors" means, collectively, Greenbrier Leasing
Corporation, Greenbrier Railcar, Inc., Greenbrier Leasing Ltd., Autostack
Corporation, Gunderson, Inc., Gunderson Rail Services, Inc., Gunderson
Marine, Inc., and Greenbrier-Concarril, LLC.

      "Subsidiary Guaranty" means the Subsidiary Guaranty made by each of the
Subsidiary Guarantors in favor of the Administrative Agent and the Lenders,
substantially in the form of Exhibit F.

      "Swap Contract" means (a) any and all rate swap transactions, basis swaps,
credit derivative transactions, forward rate transactions, commodity swaps,
commodity options, forward commodity contracts, equity or equity index swaps or
options, bond or bond price or bond index swaps or options or forward bond or
forward bond price or forward bond index transactions, interest rate options,
forward foreign exchange transactions, cap transactions, floor transactions,
collar transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions
of any kind, and the related confirmations, which are subject to the terms and
conditions of, or governed by, any form of master agreement published by the
International Swaps and Derivatives Association, Inc., any International Foreign
Exchange Master Agreement,

                                       24
<PAGE>
or any other master agreement (any such master agreement, together with any
related schedules, a "Master Agreement"), including any such obligations or
liabilities under any Master Agreement.

      "Swap Termination Value" means, in respect of any one or more Swap
Contracts, after taking into account the effect of any legally enforceable
netting agreement relating to such Swap Contracts, (a) for any date on or after
the date such Swap Contracts have been closed out and termination value(s)
determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as the
mark-to-market value(s) for such Swap Contracts, as determined based upon one or
more mid-market or other readily available quotations provided by any recognized
dealer in such Swap Contracts (which may include a Lender or any Affiliate of a
Lender).

      "Swing Line" means the revolving credit facility made available by the
Swing Line Lender pursuant to Section 2.04.

      "Swing Line Borrowing" means a borrowing of a Swing Line Loan pursuant to
Section 2.04.

      "Swing Line Lender" means Bank of America in its capacity as provider of
Swing Line Loans, or any successor swing line lender hereunder.

      "Swing Line Loan" has the meaning specified in Section 2.04(a).

      "Swing Line Loan Notice" means a notice of a Swing Line Borrowing pursuant
to Section 2.04(b), which, if in writing, shall be substantially in the form of
Exhibit B.

      "Swing Line Sublimit" means an amount equal to the lesser of
$10,000,000 and the amount available under the U.S. Revolver Ceiling.  The
Swing Line Sublimit is part of, and not in addition to, the U.S. Revolving
Credit Facility.

      "Synthetic Lease Obligation" means the monetary obligation of a Person
under (a) a so-called synthetic, off-balance sheet or tax retention lease, or
(b) an agreement for the use or possession of property creating obligations that
do not appear on the balance sheet of such Person but which, upon the insolvency
or bankruptcy of such Person, would be characterized as the indebtedness of such
Person (without regard to accounting treatment).

      "TARGET Day" means any day on which the Trans-European Automated Real-time
Gross Settlement Express Transfer (TARGET) payment system (or, if such payment
system ceases to be operative, such other payment system (if any) determined by
the Administrative Agent to be a suitable replacement) is open for the
settlement of payments in Euro.

      "Taxes" means all present or future taxes, levies, imposts, duties,
deductions, withholdings, assessments, fees or other charges imposed by any
Governmental Authority, including any interest, additions to tax or penalties
applicable thereto.

      "Term Debt" means a private offering of debt securities or long-term debt
by the Company to institutional investors or financial institutions which is
secured by lease-related

                                       25
<PAGE>
assets, including, but not limited to, rail cars, marine barges and other
surface transportation equipment, and related chattel paper, that is excluded
from both the U.S. Borrowing Base and the Canadian Borrowing Base.

      "Threshold Amount" means $5,000,000 as to Section 8.01(e), and $15,000,000
as to each of Sections 8.01(h) and (i).

      "Total Outstandings" means the aggregate Outstanding Amount of all Loans,
L/C Obligations, and Overdrafts.

      "Type" means, with respect to a Committed Loan, its character as a Base
Rate Loan or a Eurocurrency Rate Loan.

      "U.S. Borrowing Base" means, as of any date of determination, with respect
to the assets of the Company and the Subsidiary Guarantors, and excluding the
assets of TWI, the sum of (i) 90% of the Dollar amount of Perfected Lease
Assets, (ii) 60% of the Dollar amount of Unperfected Lease Assets (not to exceed
$10,000,000 in the aggregate), (iii) 80% of the Dollar amount of Eligible
Accounts, (iv) 50% of the Dollar amount of Eligible Inventory, and (v) 50% of
the Dollar amount of Eligible Property, Plant and Equipment.

      "U.S. Letter of Credit Sublimit" means an amount equal to the lesser of
$25,000,000 or the amount available under the U.S. Revolver Ceiling. The U.S.
Letter of Credit Sublimit is part of, and not in addition to, the U.S.
Revolving Credit Facility.

      "U.S. Revolver Ceiling" means the amount that is the lesser of (a)
$125,000,000; or (b) the amount available under the U.S. Borrowing Base.

      "U.S. Revolving Credit Facility" has the meaning specified in Section
2.01(a)(i).

      "Unfunded Pension Liability" means the excess of a Pension Plan's benefit
liabilities under Section 4001(a)(16) of ERISA, over the current value of that
Pension Plan's assets, determined in accordance with the assumptions used for
funding the Pension Plan pursuant to Section 412 of the Code for the applicable
plan year.

      "United States" and "U.S." mean the United States of America.

      "Unperfected Lease Assets" means those certain lease-related assets,
including, but not limited to, rail cars, marine barges and other surface
transportation equipment, and related chattel paper, of Borrowers, or of
Subsidiary Guarantors, which have been pledged to the Lenders as security for
the Obligations, but for which the Lenders have not received a first priority,
perfected security interest.

      "Unreimbursed Amount" has the meaning specified in Section 2.03(c)(i).

      "Voting Percentage" means the percentage interest set forth in the
appropriate column opposite the name of each Lender in Schedule 2.01.

                                       26
<PAGE>
      1.02 OTHER INTERPRETIVE PROVISIONS. With reference to this Agreement and
each other Loan Document, unless otherwise specified herein or in such other
Loan Document:

      (a) The definitions of terms herein shall apply equally to the singular
and plural forms of the terms defined. Whenever the context may require, any
pronoun shall include the corresponding masculine, feminine and neuter forms.
The words "include," "includes" and "including" shall be deemed to be followed
by the phrase "without limitation." The word "will" shall be construed to have
the same meaning and effect as the word "shall." Unless the context requires
otherwise, (i) any definition of or reference to any agreement, instrument or
other document (including any Organization Document) shall be construed as
referring to such agreement, instrument or other document as from time to time
amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein or in any other Loan
Document), (ii) any reference herein to any Person shall be construed to include
such Person's successors and assigns, (iii) the words "herein," "hereof" and
"hereunder," and words of similar import when used in any Loan Document, shall
be construed to refer to such Loan Document in its entirety and not to any
particular provision thereof, (iv) all references in a Loan Document to
Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, the Loan Document in
which such references appear, (v) any reference to any law shall include all
statutory and regulatory provisions consolidating, amending, replacing or
interpreting such law and any reference to any law or regulation shall, unless
otherwise specified, refer to such law or regulation as amended, modified or
supplemented from time to time, and (vi) the words "asset" and "property" shall
be construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

      (b) In the computation of periods of time from a specified date to a later
specified date, the word "from" means "from and including;" the words "to" and
"until" each mean "to but excluding;" and the word "through" means "to and
including."

      (c) Section headings herein and in the other Loan Documents are included
for convenience of reference only and shall not affect the interpretation of
this Agreement or any other Loan Document.

      1.03 ACCOUNTING TERMS. (a) Generally. All accounting terms not
specifically or completely defined herein shall be construed in conformity with,
and all financial data (including financial ratios and other financial
calculations) required to be submitted pursuant to this Agreement shall be
prepared in conformity with, GAAP applied on a consistent basis, or Canadian
GAAP with respect to TWI, as in effect from time to time, applied in a manner
consistent with that used in preparing the Audited Financial Statements, except
as otherwise specifically prescribed herein.

      (b) Changes in GAAP or Canadian GAAP. If at any time any change in GAAP,
or Canadian GAAP with respect to TWI, would affect the computation of any
financial ratio or requirement set forth in any Loan Document, and either the
Company or the Required Lenders shall so request, the Administrative Agent, the
Lenders and the Company shall negotiate in good faith to amend such ratio or
requirement to preserve the original intent thereof in light of such

                                       27
<PAGE>
change in GAAP, or Canadian GAAP with respect to TWI, (subject to the approval
of the Required Lenders); provided that, until so amended, (i) such ratio or
requirement shall continue to be computed in accordance with GAAP, or Canadian
GAAP with respect to TWI, prior to such change therein and (ii) the Company
shall provide to the Administrative Agent and the Lenders financial statements
and other documents required under this Agreement or as reasonably requested
hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP, or
Canadian GAAP with respect to TWI.

      (c) Consolidation of Variable Interest Entities. All references herein to
consolidated financial statements of the Company and its Subsidiaries or to the
determination of any amount for the Company and its Subsidiaries on a
consolidated basis or any similar reference shall, in each case, be deemed to
include each variable interest entity that the Company is required to
consolidate pursuant to FASB Interpretation No. 46 - Consolidation of Variable
Interest Entities: an interpretation of ARB No. 51 (January 2003) as if such
variable interest entity were a Subsidiary as defined herein.

      1.04 EXCHANGE RATES; CURRENCY EQUIVALENTS. (a) The Administrative Agent or
the L/C Issuer, as applicable, shall determine the Spot Rates as of each
Revaluation Date to be used for calculating Dollar Equivalent amounts of Credit
Extensions and Outstanding Amounts denominated in Alternative Currencies. Such
Spot Rates shall become effective as of such Revaluation Date and shall be the
Spot Rates employed in converting any amounts between the applicable currencies
until the next Revaluation Date to occur. Except for purposes of financial
statements delivered by Loan Parties hereunder or calculating financial
covenants hereunder or except as otherwise provided herein, the applicable
amount of any currency (other than Dollars) for purposes of the Loan Documents
shall be such Dollar Equivalent amount as so determined by the Administrative
Agent or the L/C Issuer, as applicable.

      (b) Wherever in this Agreement in connection with a Committed Borrowing,
conversion, continuation or prepayment of a Eurocurrency Rate Loan or the
issuance, amendment or extension of a Letter of Credit, an amount, such as a
required minimum or multiple amount, is expressed in Dollars, but such Committed
Borrowing, Eurocurrency Rate Loan or Letter of Credit is denominated in an
Alternative Currency, such amount shall be the relevant Alternative Currency
Equivalent of such Dollar amount (rounded to the nearest unit of such
Alternative Currency, with 0.5 of a unit being rounded upward), as determined by
the Administrative Agent or the L/C Issuer, as the case may be.

                                       28
<PAGE>
      1.05 ADDITIONAL ALTERNATIVE CURRENCIES. (a) The Company may from time to
time request that Eurocurrency Rate Loans be made and/or Letters of Credit be
issued in a currency other than those specifically listed in the definition of
"Alternative Currency;" provided that such requested currency is a lawful
currency (other than Dollars) that is readily available and freely transferable
and convertible into Dollars. In the case of any such request with respect to
the making of Eurocurrency Rate Loans, such request shall be subject to the
approval of the Administrative Agent and the Lenders; and in the case of any
such request with respect to the issuance of Letters of Credit, such request
shall be subject to the approval of the Administrative Agent and the L/C Issuer.

      (b) Any such request shall be made to the Administrative Agent not later
than 8:00 a.m., 20 Business Days prior to the date of the desired Credit
Extension (or such other time or date as may be agreed by the Administrative
Agent and, in the case of any such request pertaining to Letters of Credit, the
L/C Issuer, in its or their sole discretion). In the case of any such request
pertaining to Eurocurrency Rate Loans, the Administrative Agent shall promptly
notify each Lender thereof; and in the case of any such request pertaining to
Letters of Credit, the Administrative Agent shall promptly notify the L/C Issuer
thereof. Each Lender (in the case of any such request pertaining to Eurocurrency
Rate Loans) or the L/C Issuer (in the case of a request pertaining to Letters of
Credit) shall notify the Administrative Agent, not later than 8:00 a.m., ten
Business Days after receipt of such request whether it consents, in its sole
discretion, to the making of Eurocurrency Rate Loans or the issuance of Letters
of Credit, as the case may be, in such requested currency.

      (c) Any failure by a Lender or the L/C Issuer, as the case may be, to
respond to such request within the time period specified in the preceding
sentence shall be deemed to be a refusal by such Lender or the L/C Issuer, as
the case may be, to permit Eurocurrency Rate Loans to be made or Letters of
Credit to be issued in such requested currency. If the Administrative Agent and
all the Lenders consent to making Eurocurrency Rate Loans in such requested
currency, the Administrative Agent shall so notify the Company and such currency
shall thereupon be deemed for all purposes to be an Alternative Currency
hereunder for purposes of any Committed Borrowings of Eurocurrency Rate Loans;
and if the Administrative Agent and the L/C Issuer consent to the issuance of
Letters of Credit in such requested currency, the Administrative Agent shall so
notify the Company and such currency shall thereupon be deemed for all purposes
to be an Alternative Currency hereunder for purposes of any Letter of Credit
issuances. If the Administrative Agent shall fail to obtain consent to any
request for an additional currency under this Section 1.05, the Administrative
Agent shall promptly so notify the Company. Any specified currency of an
Existing Letter of Credit that is neither Dollars nor one of the Alternative
Currencies specifically listed in the definition of "Alternative Currency" shall
be deemed an Alternative Currency with respect to such Existing Letter of Credit
only.

      1.06 CHANGE OF CURRENCY. (a) Each obligation of the Borrowers to make a
payment denominated in the national currency unit of any member state of the
European Union that adopts the Euro as its lawful currency after the date hereof
shall be redenominated into Euro at the time of such adoption (in accordance
with the EMU Legislation). If, in relation to the currency of any such member
state, the basis of accrual of interest expressed in this Agreement in respect
of that currency shall be inconsistent with any convention or practice in the
London interbank market for the basis of accrual of interest in respect of the
Euro, such expressed basis

                                       29
<PAGE>
shall be replaced by such convention or practice with effect from the date on
which such member state adopts the Euro as its lawful currency; provided that if
any Committed Borrowing in the currency of such member state is outstanding
immediately prior to such date, such replacement shall take effect, with respect
to such Committed Borrowing, at the end of the then current Interest Period.

      (b) Each provision of this Agreement shall be subject to such reasonable
changes of construction as the Administrative Agent may from time to time
specify to be appropriate to reflect the adoption of the Euro by any member
state of the European Union and any relevant market conventions or practices
relating to the Euro.

      (c) Each provision of this Agreement also shall be subject to such
reasonable changes of construction as the Administrative Agent may from time to
time specify to be appropriate to reflect a change in currency of any other
country and any relevant market conventions or practices relating to the change
in currency.

      1.07 TIMES OF DAY. Unless otherwise specified, all references herein to
times of day shall be references to Pacific time (daylight or standard, as
applicable), or Eastern Standard Time with respect to the Canadian Revolving
Credit Facility and notices to the Canadian Lender.

      1.08 LETTER OF CREDIT AMOUNTS. Unless otherwise specified herein, the
amount of a Letter of Credit at any time shall be deemed to be the Dollar
Equivalent of the stated amount of such Letter of Credit in effect at such time;
provided, however, that with respect to any Letter of Credit that, by its terms
or the terms of any Issuer Document related thereto, provides for one or more
automatic increases in the stated amount thereof, the amount of such Letter of
Credit shall be deemed to be the Dollar Equivalent of the maximum stated amount
of such Letter of Credit after giving effect to all such increases, whether or
not such maximum stated amount is in effect at such time.

                                   ARTICLE II.
                      THE COMMITMENTS AND CREDIT EXTENSIONS

      2.01  REVOLVING CREDIT FACILITIES AND COMMITTED LOANS

      (a)   CREDIT FACILITIES.

            (i) Subject to the terms and conditions set forth herein, the
Lenders agree to make available to the Company a $125,000,000 multiple advance
revolving credit facility (the "U.S. Revolving Credit Facility"). Subject to the
limitations imposed by the U.S. Revolver Ceiling, and by the Aggregate
Commitments as provided below, the Company may borrow under this facility, repay
and reborrow as provided below. If for any reason, the outstanding obligations
under the Revolving Credit Facility at any time exceed the U.S. Revolver
Ceiling, the Company shall immediately repay Loans and/or Cash Collateralize L/C
Obligations under this facility in an aggregate amount equal to such excess.
Each Borrowing hereunder shall be as provided in Section 2.02 below.

            (ii) Subject to the terms and conditions set forth herein, the
Canadian Lender agrees to make available to TWI a CDN$30,000,000 multiple
advance revolving credit facility

                                       30
<PAGE>
(the "Canadian Revolving Credit Facility"). Subject to the limitations imposed
by the Canadian Revolver Ceiling, and by the Aggregate Commitments as provided
below, TWI may borrow under this facility, repay and reborrow as provided below.
If for any reason, the outstanding obligations under the Canadian Revolving
Credit Facility at any time exceed the Canadian Revolver Ceiling, TWI shall
immediately repay Loans and/or Cash Collateralize L/C Obligations under this
facility in an aggregate amount equal to such excess. It is anticipated that the
Canadian Revolving Credit Facility will be used primarily by TWI to accommodate
Overdrafts. Overdrafts incurred by TWI shall constitute Borrowings under the
Canadian Revolving Credit Facility. Each Borrowing hereunder, other than the
accommodation of Overdrafts, shall be made as provided in Section 2.02 below.
TWI shall provide notice of Borrowings under this facility directly to the
Canadian Lender, and all payments made under this facility shall be made by TWI
directly to the Canadian Lender. Notwithstanding anything to the contrary
herein, all ordinary functions of a lender under the Canadian Revolving Credit
Facility, including, but not limited to, matters such as the processing of
notices pursuant to Section 2.02 below, payments and prepayments, and
determination of the interest rate, shall be the exclusive responsibility of the
Canadian Lender. All fees payable to the Canadian Lender shall be calculated by
the Canadian Lender and paid directly to the Canadian Lender by TWI. This
facility constitutes a renewal and amendment of an existing revolving credit
facility extended from the Canadian Lender to TWI.

      (b) COMMITTED LOANS. Subject to the terms and conditions set forth herein,
each Lender severally agrees to make loans (each such loan, a "Committed Loan")
to the Borrowers in Dollars or in one or more Alternative Currencies from time
to time, on any Business Day during the Availability Period, in an aggregate
amount not to exceed at any time outstanding the amount of such Lender's
Commitment; provided, however, that after giving effect to any Committed
Borrowing, (i) the Total Outstandings shall not exceed the Aggregate
Commitments, and (ii) the aggregate Outstanding Amount of the Committed Loans of
any Lender, plus such Lender's Applicable Percentage of the Outstanding Amount
of all L/C Obligations, plus such Lender's Applicable Percentage of the
Outstanding Amount of all Swing Line Loans shall not exceed such Lender's
Commitment, (iii) the aggregate Outstanding Amount of all Committed Loans
denominated in Alternative Currencies shall not exceed the Alternative Currency
Sublimit, and (iv) the outstanding obligations under either the U.S. Revolving
Credit Facility or the Canadian Revolving Credit Facility shall not exceed their
respective limits under the U.S. Revolver Ceiling or the Canadian Revolver
Ceiling. Within the limits of each Lender's Commitment, and subject to the other
terms and conditions hereof, the Borrowers may borrow under this Section 2.01,
prepay under Section 2.05, and reborrow under this Section 2.01. Committed Loans
may be Base Rate Loans or Eurocurrency Rate Loans, as further provided herein.

      2.02  BORROWINGS, CONVERSIONS AND CONTINUATIONS OF COMMITTED LOANS.

      (a) Each Committed Borrowing, each conversion of Committed Loans from one
Type to the other, and each continuation of Eurocurrency Rate Loans shall be
made upon the Company's, or TWI's with respect to Borrowings which are not
Overdrafts under the Canadian Revolving Credit Facility, irrevocable notice to
the Administrative Agent, or the Canadian Lender, as appropriate, which may be
given by telephone. Each such notice must be received by the Administrative
Agent not later than 11:00 a.m. (i) three Business Days prior to the requested
date of any Borrowing of, conversion to or continuation of Eurocurrency Rate
Loans denominated in Dollars or of any conversion of Eurocurrency Rate Loans
denominated in

                                       31
<PAGE>
Dollars to Base Rate Committed Loans, (ii) four Business Days (or five Business
Days in the case of a Special Notice Currency) prior to the requested date of
any Borrowing or continuation of Eurocurrency Rate Loans denominated in
Alternative Currencies, and (iii) on the requested date of any Borrowing of Base
Rate Committed Loans; provided, however, that if the Company wishes to request
Eurocurrency Rate Loans having an Interest Period other than seven (7) days,
fourteen (14) days, one, two, three or six months in duration as provided in the
definition of "Interest Period," the applicable notice must be received by the
Administrative Agent not later than 11:00 a.m. (i) four Business Days prior to
the requested date of such Borrowing, conversion or continuation of Eurocurrency
Rate Loans denominated in Dollars, or (ii) five Business Days (or six Business
days in the case of a Special Notice Currency) prior to the requested date of
such Borrowing, conversion or continuation of Eurocurrency Rate Loans
denominated in Alternative Currencies, whereupon the Administrative Agent shall
give prompt notice to the Lenders of such request and determine whether the
requested Interest Period is acceptable to all of them. Not later than 11:00
a.m., (i) three Business Days before the requested date of such Borrowing,
conversion or continuation of Eurocurrency Rate Loans denominated in Dollars, or
(ii) four Business Days (or five Business days in the case of a Special Notice
Currency) prior to the requested date of such Borrowing, conversion or
continuation of Eurocurrency Rate Loans denominated in Alternative Currencies,
the Administrative Agent shall notify the Company (which notice may be by
telephone) whether or not the requested Interest Period has been consented to by
all the Lenders. Each telephonic notice by the Company pursuant to this Section
2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a
written Committed Loan Notice, appropriately completed and signed by a
Responsible Officer of the Company. Each Borrowing of, conversion to or
continuation of Eurocurrency Rate Loans shall be in a principal amount of
$1,000,000 or a whole multiple of $500,000 in excess thereof. Except as provided
in Sections 2.03(c) and 2.04(c), each Committed Borrowing of or conversion to
Base Rate Committed Loans shall be in a principal amount of $500,000 or a whole
multiple of $100,000 in excess thereof. The amounts set forth above shall not
apply to Overdrafts under the Canadian Revolving Credit Facility. Each Committed
Loan Notice (whether telephonic or written) shall specify (i) whether the
Company is requesting a Committed Borrowing, a conversion of Committed Loans
from one Type to the other, or a continuation of Eurocurrency Rate Loans, (ii)
the requested date of the Borrowing, conversion or continuation, as the case may
be (which shall be a Business Day), (iii) the principal amount of Committed
Loans to be borrowed, converted or continued, (iv) the Type of Committed Loans
to be borrowed or to which existing Committed Loans are to be converted, (v) if
applicable, the duration of the Interest Period with respect thereto, and (vi)
the currency of the Committed Loans to be borrowed. If the Company fails to
specify a currency in a Committed Loan Notice requesting a Borrowing, then the
Committed Loans so requested shall be made in Dollars. If the Company fails to
specify a Type of Committed Loan in a Committed Loan Notice or if the Company
fails to give a timely notice requesting a conversion or continuation, then the
applicable Committed Loans shall be made as, or converted to, Base Rate Loans;
provided, however, that in the case of a failure to timely request a
continuation of Committed Loans denominated in an Alternative Currency, such
Loans shall be continued as Eurocurrency Rate Loans in their original currency
with an Interest Period of one month. Any automatic conversion to Base Rate
Loans shall be effective as of the last day of the Interest Period then in
effect with respect to the applicable Eurocurrency Rate Loans. If the Company
requests a Borrowing of, conversion to, or continuation of Eurocurrency Rate
Loans in any such Committed Loan Notice, but fails to specify an Interest
Period, it will be

                                       32
<PAGE>
deemed to have specified an Interest Period of one month. No Committed Loan may
be converted into or continued as a Committed Loan denominated in a different
currency, but instead must be prepaid in the original currency of such Committed
Loan and reborrowed in the other currency.

      (b) Following receipt of a Committed Loan Notice, the Administrative Agent
shall promptly notify each Lender of the amount (and currency) of its Applicable
Percentage of the applicable Committed Loans, and if no timely notice of a
conversion or continuation is provided by the Company, the Administrative Agent
shall notify each Lender of the details of any automatic conversion to Base Rate
Loans or continuation of Committed Loans denominated in a currency other than
Dollars, in each case as described in the preceding subsection. In the case of a
Committed Borrowing, each Lender shall make the amount of its Committed Loan
available to the Administrative Agent in Same Day Funds at the Administrative
Agent's Office for the applicable currency not later than 11:00 a.m., in the
case of any Committed Loan denominated in Dollars, and not later than the
Applicable Time specified by the Administrative Agent in the case of any
Committed Loan in an Alternative Currency, in each case on the Business Day
specified in the applicable Committed Loan Notice. Upon satisfaction of the
applicable conditions set forth in Section 4.02 (and, if such Borrowing is the
initial Credit Extension, Section 4.01), the Administrative Agent shall make all
funds so received available to the Company or the other applicable Borrower in
like funds as received by the Administrative Agent either by (i) crediting the
account of such Borrower on the books of Bank of America with the amount of such
funds or (ii) wire transfer of such funds, in each case in accordance with
instructions provided to (and reasonably acceptable to) the Administrative Agent
by the Company; provided, however, that if, on the date the Committed Loan
Notice with respect to such Borrowing denominated in Dollars is given by the
Company, there are L/C Borrowings outstanding, then the proceeds of such
Borrowing, first, shall be applied to the payment in full of any such L/C
Borrowings, and, second, shall be made available to the applicable Borrower as
provided above.

      (c) Except as otherwise provided herein, a Eurocurrency Rate Loan may be
continued or converted only on the last day of an Interest Period for such
Eurocurrency Rate Loan. During the existence of a Default, no Loans may be
requested as, converted to or continued as Eurocurrency Rate Loans (whether in
Dollars or any Alternative Currency) without the consent of the Required
Lenders, and the Required Lenders may demand that any or all of the then
outstanding Eurocurrency Rate Loans denominated in an Alternative Currency be
prepaid, or redenominated into Dollars in the amount of the Dollar Equivalent
thereof, on the last day of the then current Interest Period with respect
thereto.

      (d) The Administrative Agent shall promptly notify the Company and the
Lenders of the interest rate applicable to any Interest Period for Eurocurrency
Rate Loans upon determination of such interest rate. At any time that Base Rate
Loans are outstanding, the Administrative Agent shall notify the Company and the
Lenders of any change in Bank of America's prime rate used in determining the
Base Rate promptly following the public announcement of such change.

      (e) After giving effect to all Committed Borrowings, all conversions of
Committed Loans from one Type to the other, and all continuations of Committed
Loans as the same Type, there shall not be more than eight Interest Periods in
effect with respect to Committed Loans.

                                       33
<PAGE>
     2.03 LETTERS OF CREDIT.

     (a)  The Letter of Credit Commitment.

          (i) Subject to the terms and conditions set forth herein, (A) the L/C
     Issuer agrees, in reliance upon the agreements of the Lenders set forth in
     this Section 2.03, (1) from time to time on any Business Day during the
     period from the Closing Date until the Letter of Credit Expiration Date, to
     issue Letters of Credit denominated in Dollars, Canadian Dollars, or in one
     or more Alternative Currencies for the account of the Company or its
     Subsidiaries, and to amend or extend Letters of Credit previously issued by
     it, in accordance with subsection (b) below, and (2) to honor drawings
     under the Letters of Credit; and (B) the Lenders severally agree to
     participate in Letters of Credit issued for the account of the Company or
     its Subsidiaries and any drawings thereunder, except for Letters of Credit
     issued under the Canadian Revolving Credit Facility which shall be issued
     by the Canadian Lender without the participation of the other Lenders;
     provided that after giving effect to any L/C Credit Extension with respect
     to any Letter of Credit, (x) the Total Outstandings under the U.S.
     Revolving Credit Facility or the Canadian Revolving Credit Facility shall
     not exceed the U.S. Revolver Ceiling or the Canadian Revolver Ceiling,
     respectively, (y) the aggregate Outstanding Amount of the Committed Loans
     of any Lender, plus such Lender's Applicable Percentage of the Outstanding
     Amount of all L/C Obligations, plus such Lender's Applicable Percentage of
     the Outstanding Amount of all Swing Line Loans shall not exceed such
     Lender's Commitment, and (z) the Outstanding Amount of the L/C Obligations
     shall not exceed the U.S. Letter of Credit Sublimit or the Canadian Letter
     of Credit Sublimit, as appropriate. Each request by the Company for the
     issuance or amendment of a Letter of Credit shall be deemed to be a
     representation by the Company that the L/C Credit Extension so requested
     complies with the conditions set forth in the proviso[s] to the preceding
     sentence. Within the foregoing limits, and subject to the terms and
     conditions hereof, the Company's ability to obtain Letters of Credit shall
     be fully revolving, and accordingly the Company may, during the foregoing
     period, obtain Letters of Credit to replace Letters of Credit that have
     expired or that have been drawn upon and reimbursed. All Existing Letters
     of Credit shall be deemed to have been issued pursuant hereto, and from and
     after the Closing Date shall be subject to and governed by the terms and
     conditions hereof.

          (ii) The L/C Issuer shall not issue any Letter of Credit, if:

               (A) the expiry date of such requested Letter of Credit would
          occur after the Letter of Credit Expiration Date, unless all the
          Lenders have approved such expiry date.

          (iii) The L/C Issuer shall not be under any obligation to issue any
     Letter of Credit if:

               (A) any order, judgment or decree of any Governmental Authority
          or arbitrator shall by its terms purport to enjoin or restrain the L/C
          Issuer from issuing such Letter of Credit, or any Law applicable to
          the L/C Issuer or any

                                       34
<PAGE>
          request or directive (whether or not having the force of law) from any
          Governmental Authority with jurisdiction over the L/C Issuer shall
          prohibit, or request that the L/C Issuer refrain from, the issuance of
          letters of credit generally or such Letter of Credit in particular or
          shall impose upon the L/C Issuer with respect to such Letter of Credit
          any restriction, reserve or capital requirement (for which the L/C
          Issuer is not otherwise compensated hereunder) not in effect on the
          Closing Date, or shall impose upon the L/C Issuer any unreimbursed
          loss, cost or expense which was not applicable on the Closing Date and
          which the L/C Issuer in good faith deems material to it;

               (B) the issuance of such Letter of Credit would violate one or
          more policies of the L/C Issuer;

               (C) except as otherwise agreed by the Administrative Agent and
          the L/C Issuer, such Letter of Credit is in an initial stated amount
          less than $100,000, in the case of a commercial Letter of Credit, or
          $250,000, in the case of a standby Letter of Credit; or CDN $100,000
          and CDN $250,000, respectively, with regard to such Letters of Credit
          based under the Canadian Revolving Credit Facility;

               (D) except as otherwise agreed by the Administrative Agent and
          the L/C Issuer, such Letter of Credit is to be denominated in a
          currency other than Dollars or an Alternative Currency;

               (E) the L/C Issuer does not as of the issuance date of such
          requested Letter of Credit issue Letters of Credit in the requested
          currency;

               (F) such Letter of Credit contains any provisions for automatic
          reinstatement of the stated amount after any drawing thereunder; or

               (G) a default of any Lender's obligations to fund under Section
          2.03(c) exists or any Lender is at such time a Defaulting Lender
          hereunder, unless the L/C Issuer has entered into satisfactory
          arrangements with the Company or such Lender to eliminate the L/C
          Issuer's risk with respect to such Lender.

          (iv) The L/C Issuer shall not amend any Letter of Credit if the L/C
     Issuer would not be permitted at such time to issue such Letter of Credit
     in its amended form under the terms hereof.

          (v) The L/C Issuer shall be under no obligation to amend any Letter of
     Credit if (A) the L/C Issuer would have no obligation at such time to issue
     such Letter of Credit in its amended form under the terms hereof, or (B)
     the beneficiary of such Letter of Credit does not accept the proposed
     amendment to such Letter of Credit.

          (vi) The L/C Issuer shall act on behalf of the Lenders with respect to
     any Letters of Credit issued by it and the documents associated therewith,
     and the L/C Issuer shall have all of the benefits and immunities (A)
     provided to the Administrative Agent in Article IX with respect to any acts
     taken or omissions suffered by the L/C Issuer in connection with Letters of
     Credit issued by it or proposed to be issued by it and Issuer

                                       35
<PAGE>
     Documents pertaining to such Letters of Credit as fully as if the term
     "Administrative Agent" as used in Article IX included the L/C Issuer with
     respect to such acts or omissions, and (B) as additionally provided herein
     with respect to the L/C Issuer.

     (b) Procedures for Issuance and Amendment of Letters of Credit;
Auto-Extension Letters of Credit.

          (i) Each Letter of Credit shall be issued or amended, as the case may
     be, upon the request of the Company delivered to the L/C Issuer (with a
     copy to the Administrative Agent) in the form of a Letter of Credit
     Application, appropriately completed and signed by a Responsible Officer of
     the Company. Such Letter of Credit Application must be received by the L/C
     Issuer and the Administrative Agent not later than 10:00 a.m. at least two
     Business Days (or such later date and time as the Administrative Agent and
     the L/C Issuer may agree in a particular instance in their sole discretion)
     prior to the proposed issuance date or date of amendment, as the case may
     be. In the case of a request for an initial issuance of a Letter of Credit,
     such Letter of Credit Application shall specify in form and detail
     reasonably satisfactory to the L/C Issuer: (A) the proposed issuance date
     of the requested Letter of Credit (which shall be a Business Day); (B) the
     amount and currency thereof; (C) the expiry date thereof; (D) the name and
     address of the beneficiary thereof; (E) the documents to be presented by
     such beneficiary in case of any drawing thereunder; (F) the full text of
     any certificate to be presented by such beneficiary in case of any drawing
     thereunder; and (G) such other matters as the L/C Issuer may require. In
     the case of a request for an amendment of any outstanding Letter of Credit,
     such Letter of Credit Application shall specify in form and detail
     reasonably satisfactory to the L/C Issuer (A) the Letter of Credit to be
     amended; (B) the proposed date of amendment thereof (which shall be a
     Business Day); (C) the nature of the proposed amendment; and (D) such other
     matters as the L/C Issuer may require. Additionally, the Company shall
     furnish to the L/C Issuer and the Administrative Agent such other documents
     and information pertaining to such requested Letter of Credit issuance or
     amendment, including any Issuer Documents, as the L/C Issuer or the
     Administrative Agent may require.

          (ii) Promptly after receipt of any Letter of Credit Application, the
     L/C Issuer will confirm with the Administrative Agent (by telephone or in
     writing) that the Administrative Agent has received a copy of such Letter
     of Credit Application from the Company and, if not, the L/C Issuer will
     provide the Administrative Agent with a copy thereof. Unless the L/C Issuer
     has received written notice from any Lender, the Administrative Agent or
     any Loan Party, at least one Business Day prior to the requested date of
     issuance or amendment of the applicable Letter of Credit, that one or more
     applicable conditions contained in Article IV shall not then be satisfied,
     then, subject to the terms and conditions hereof, the L/C Issuer shall, on
     the requested date, issue a Letter of Credit for the account of the Company
     (or the applicable Subsidiary) or enter into the applicable amendment, as
     the case may be, in each case in accordance with the L/C Issuer's usual and
     customary business practices. Immediately upon the issuance of each Letter
     of Credit, each Lender shall be deemed to, and hereby irrevocably and
     unconditionally agrees to, purchase from the L/C Issuer a risk
     participation in such Letter

                                       36
<PAGE>
     of Credit in an amount equal to the product of such Lender's Applicable
     Percentage times the amount of such Letter of Credit.

          (iii) If the Company or TWI so requests in any applicable Letter of
     Credit Application, the L/C Issuer may, in its sole and absolute
     discretion, agree to issue a Letter of Credit that has automatic extension
     provisions (each, an "Auto-Extension Letter of Credit"); provided that any
     such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent
     any such extension at least once in each twelve-month period (commencing
     with the date of issuance of such Letter of Credit) by giving prior notice
     to the beneficiary thereof not later than a day (the "Non-Extension Notice
     Date") in each such twelve-month period to be agreed upon at the time such
     Letter of Credit is issued. Unless otherwise directed by the L/C Issuer,
     the Company shall not be required to make a specific request to the L/C
     Issuer for any such extension. Once an Auto-Extension Letter of Credit has
     been issued, the Lenders shall be deemed to have authorized (but may not
     require) the L/C Issuer to permit the extension of such Letter of Credit at
     any time to an expiry date not later than the Letter of Credit Expiration
     Date; provided, however, that the L/C Issuer shall not permit any such
     extension if (A) the L/C Issuer has determined that it would not be
     permitted, or would have no obligation, at such time to issue such Letter
     of Credit in its revised form (as extended) under the terms hereof (by
     reason of the provisions of clause (ii) or (iii) of Section 2.03(a) or
     otherwise), or (B) it has received notice (which may be by telephone or in
     writing) on or before the day that is five Business Days before the
     Non-Extension Notice Date (1) from the Administrative Agent that the
     Required Lenders have elected not to permit such extension or (2) from the
     Administrative Agent, any Lender or the Company that one or more of the
     applicable conditions specified in Section 4.02 is not then satisfied, and
     in each such case directing the L/C Issuer not to permit such extension.

          (iv) Promptly after its delivery of any Letter of Credit or any
     amendment to a Letter of Credit to an advising bank with respect thereto or
     to the beneficiary thereof, the L/C Issuer will also deliver to the Company
     and the Administrative Agent a true and complete copy of such Letter of
     Credit or amendment.

     (c) Drawings and Reimbursements; Funding of Participations.

          (i) Upon receipt from the beneficiary of any Letter of Credit of any
     notice of a drawing under such Letter of Credit, the L/C Issuer shall
     notify the Company, or TWI, as applicable, and the Administrative Agent
     thereof. In the case of a Letter of Credit denominated in an Alternative
     Currency, the Company, or TWI, as applicable, shall reimburse the L/C
     Issuer in such Alternative Currency, unless (A) the L/C Issuer (at its
     option) shall have specified in such notice that it will require
     reimbursement in Dollars, or (B) in the absence of any such requirement for
     reimbursement in Dollars, the Company, or TWI, as applicable, shall have
     notified the L/C Issuer promptly following receipt of the notice of drawing
     that the Company, or TWI, as applicable, will reimburse the L/C Issuer in
     Dollars, or Canadian Dollars, as applicable. In the case of any such
     reimbursement in Dollars, or Canadian Dollars, as applicable, of a drawing
     under a Letter of Credit denominated in an Alternative Currency, the L/C
     Issuer shall notify the Company, or TWI, as applicable, of the Dollar
     Equivalent, or Canadian Dollar Equivalent

                                       37
<PAGE>
     as applicable, of the amount of the drawing promptly following the
     determination thereof. Not later than 10:00 a.m. on the date of any payment
     by the L/C Issuer under a Letter of Credit to be reimbursed in Dollars, or
     the Applicable Time on the date of any payment by the L/C Issuer under a
     Letter of Credit to be reimbursed in an Alternative Currency (each such
     date, an "Honor Date"), the Company, or TWI, as applicable, shall reimburse
     the L/C Issuer through the Administrative Agent, or the Canadian Lender
     directly, as applicable, in an amount equal to the amount of such drawing
     and in the applicable currency. If the applicable Letter of Credit is under
     the U.S. Revolving Credit Facility and the Company fails to so reimburse
     the L/C Issuer by such time, the Administrative Agent shall promptly notify
     each Lender of the Honor Date, the amount of the unreimbursed drawing
     (expressed in Dollars in the amount of the Dollar Equivalent thereof in the
     case of a Letter of Credit denominated in an Alternative Currency) (the
     "Unreimbursed Amount"), and the amount of such Lender's Applicable
     Percentage thereof. In such event, the Company, or TWI, as applicable,
     shall be deemed to have requested a Committed Borrowing of Base Rate Loans
     to be disbursed on the Honor Date in an amount equal to the Unreimbursed
     Amount, without regard to the minimum and multiples specified in Section
     2.02 for the principal amount of Base Rate Loans, but subject to the amount
     of the unutilized portion of the Aggregate Commitments and the conditions
     set forth in Section 4.02 (other than the delivery of a Committed Loan
     Notice). In no event may the Company, or TWI, as applicable, extend the
     time for reimbursing any drawing under a commercial Letter of Credit by
     obtaining a banker's acceptance from the L/C Issuer. Any notice given by
     the L/C Issuer or the Administrative Agent pursuant to this Section
     2.03(c)(i) may be given by telephone if immediately confirmed in writing;
     provided that the lack of such an immediate confirmation shall not affect
     the conclusiveness or binding effect of such notice.

          (ii) Each Lender shall upon any notice pursuant to Section 2.03(c)(i)
     make funds available to the Administrative Agent for the account of the L/C
     Issuer, in Dollars, at the Administrative Agent's Office for
     Dollar-denominated payments in an amount equal to its Applicable Percentage
     of the Unreimbursed Amount not later than 10:00 a.m. on the Business Day
     specified in such notice by the Administrative Agent, whereupon, subject to
     the provisions of Section 2.03(c)(iii), each Lender that so makes funds
     available shall be deemed to have made a Base Rate Committed Loan to the
     Company in such amount. The Administrative Agent shall remit the funds so
     received to the L/C Issuer in Dollars.

          (iii) With respect to any Unreimbursed Amount that is not fully
     refinanced by a Committed Borrowing of Base Rate Loans because the
     conditions set forth in Section 4.02 cannot be satisfied or for any other
     reason, the Company, or TWI, as applicable, shall be deemed to have
     incurred from the L/C Issuer an L/C Borrowing in the amount of the
     Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be
     due and payable on demand (together with interest) and shall bear interest
     at the Default Rate. In such event, each Lender's payment to the
     Administrative Agent for the account of the L/C Issuer pursuant to Section
     2.03(c)(ii) shall be deemed payment in respect of its participation in such
     L/C Borrowing and shall constitute an L/C Advance from such Lender in
     satisfaction of its participation obligation under this Section 2.03.

                                       38
<PAGE>
          (iv) Until each Lender funds its Committed Loan or L/C Advance
     pursuant to this Section 2.03(c) to reimburse the L/C Issuer for any amount
     drawn under any Letter of Credit, and in any event with respect to an L/C
     Advance on behalf of TWI, interest in respect of such Lender's Applicable
     Percentage of such amount shall be solely for the account of the L/C
     Issuer.

          (v) Each Lender's obligation to make Committed Loans or L/C Advances
     to reimburse the L/C Issuer for amounts drawn under Letters of Credit, as
     contemplated by this Section 2.03(c), with regard to Letters of Credit
     under the U.S. Revolving Line of Credit, shall be absolute and
     unconditional and shall not be affected by any circumstance, including (A)
     any setoff, counterclaim, recoupment, defense or other right which such
     Lender may have against the L/C Issuer, the Company, any Subsidiary or any
     other Person for any reason whatsoever; (B) the occurrence or continuance
     of a Default, or (C) any other occurrence, event or condition, whether or
     not similar to any of the foregoing; provided, however, that each Lender's
     obligation to make Committed Loans pursuant to this Section 2.03(c) is
     subject to the conditions set forth in Section 4.02 (other than delivery by
     the Company of a Committed Loan Notice). No such making of an L/C Advance
     shall relieve or otherwise impair the obligation of the Company to
     reimburse the L/C Issuer for the amount of any payment made by the L/C
     Issuer under any Letter of Credit, together with interest as provided
     herein.

          (vi) If any Lender fails to make available to the Administrative Agent
     for the account of the L/C Issuer any amount required to be paid by such
     Lender pursuant to the foregoing provisions of this Section 2.03(c) by the
     time specified in Section 2.03(c)(ii), the L/C Issuer shall be entitled to
     recover from such Lender (acting through the Administrative Agent), on
     demand, such amount with interest thereon for the period from the date such
     payment is required to the date on which such payment is immediately
     available to the L/C Issuer at a rate per annum equal to the applicable
     Overnight Rate from time to time in effect. A certificate of the L/C Issuer
     submitted to any Lender (through the Administrative Agent) with respect to
     any amounts owing under this clause (vi) shall be conclusive absent
     manifest error.

     (d)  Repayment of Participations.

          (i) At any time after the L/C Issuer has made a payment under any
     Letter of Credit and has received from any Lender such Lender's L/C Advance
     in respect of such payment in accordance with Section 2.03(c), if the
     Administrative Agent receives for the account of the L/C Issuer any payment
     in respect of the related Unreimbursed Amount or interest thereon (whether
     directly from the Company or otherwise, including proceeds of Cash
     Collateral applied thereto by the Administrative Agent), the Administrative
     Agent will distribute to such Lender its Applicable Percentage thereof
     (appropriately adjusted, in the case of interest payments, to reflect the
     period of time during which such Lender's L/C Advance was outstanding) in
     Dollars and in the same funds as those received by the Administrative
     Agent.

          (ii) If any payment received by the Administrative Agent for the
     account of the L/C Issuer pursuant to Section 2.03(c)(i) is required to be
     returned under any of the

                                       39
<PAGE>
     circumstances described in Section 10.05 (including pursuant to any
     settlement entered into by the L/C Issuer in its discretion), each Lender
     shall pay to the Administrative Agent for the account of the L/C Issuer its
     Applicable Percentage thereof on demand of the Administrative Agent, plus
     interest thereon from the date of such demand to the date such amount is
     returned by such Lender, at a rate per annum equal to the applicable
     Overnight Rate from time to time in effect. The obligations of the Lenders
     under this clause shall survive the payment in full of the Obligations and
     the termination of this Agreement.

     (e) Obligations Absolute. The obligation of the Company, and TWI, as
applicable, to reimburse the L/C Issuer for each drawing under each Letter of
Credit and to repay each L/C Borrowing shall be absolute, unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances, including the following:

          (i) any lack of validity or enforceability of such Letter of Credit,
     this Agreement, or any other Loan Document;

          (ii) the existence of any claim, counterclaim, setoff, defense or
     other right that the Company or any Subsidiary may have at any time against
     any beneficiary or any transferee of such Letter of Credit (or any Person
     for whom any such beneficiary or any such transferee may be acting), the
     L/C Issuer or any other Person, whether in connection with this Agreement,
     the transactions contemplated hereby or by such Letter of Credit or any
     agreement or instrument relating thereto, or any unrelated transaction;

          (iii) any draft, demand, certificate or other document presented under
     such Letter of Credit proving to be forged, fraudulent, invalid or
     insufficient in any respect or any statement therein being untrue or
     inaccurate in any respect; or any loss or delay in the transmission or
     otherwise of any document required in order to make a drawing under such
     Letter of Credit;

          (iv) any payment by the L/C Issuer under such Letter of Credit against
     presentation of a draft or certificate that does not strictly comply with
     the terms of such Letter of Credit; or any payment made by the L/C Issuer
     under such Letter of Credit to any Person purporting to be a trustee in
     bankruptcy, debtor-in-possession, assignee for the benefit of creditors,
     liquidator, receiver or other representative of or successor to any
     beneficiary or any transferee of such Letter of Credit, including any
     arising in connection with any proceeding under any Debtor Relief Law;

          (v) any adverse change in the relevant exchange rates or in the
     availability of the relevant Alternative Currency to the Company or any
     Subsidiary or in the relevant currency markets generally; or

          (vi) any other circumstance or happening whatsoever, whether or not
     similar to any of the foregoing, including any other circumstance that
     might otherwise constitute a defense available to, or a discharge of, the
     Company or any Subsidiary.

     The Company, or TWI, as applicable, shall promptly examine a copy of each
Letter of Credit and each amendment thereto that is delivered to it and, in the
event of any claim of

                                       40
<PAGE>
noncompliance with the Company's instructions or other irregularity, the
Company, or TWI, as applicable, will promptly notify the L/C Issuer. The
Company, or TWI, as applicable, shall be conclusively deemed to have waived any
such claim against the L/C Issuer and its correspondents unless such notice is
given as aforesaid.

     (f) Role of L/C Issuer. Each Lender, the Company and TWI agree that, in
paying any drawing under a Letter of Credit, the L/C Issuer shall not have any
responsibility to obtain any document (other than any sight draft, certificates
and documents expressly required by the Letter of Credit) or to ascertain or
inquire as to the validity or accuracy of any such document or the authority of
the Person executing or delivering any such document. None of the L/C Issuer,
the Administrative Agent, any of their respective Related Parties nor any
correspondent, participant or assignee of the L/C Issuer shall be liable to any
Lender for (i) any action taken or omitted in connection herewith at the request
or with the approval of the Lenders or the Required Lenders, as applicable; (ii)
any action taken or omitted in the absence of gross negligence or willful
misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or
Issuer Document. The Company, or TWI, as applicable, hereby assumes all risks of
the acts or omissions of any beneficiary or transferee with respect to its use
of any Letter of Credit; provided, however, that this assumption is not intended
to, and shall not, preclude the Company's, or TWI's, as applicable, pursuing
such rights and remedies as it may have against the beneficiary or transferee at
law or under any other agreement. None of the L/C Issuer, the Administrative
Agent, any of their respective Related Parties nor any correspondent,
participant or assignee of the L/C Issuer shall be liable or responsible for any
of the matters described in clauses (i) through (vi) of Section 2.03(e);
provided, however, that anything in such clauses to the contrary
notwithstanding, the Company, or TWI, as applicable, may have a claim against
the L/C Issuer, and the L/C Issuer may be liable to the Company, or TWI, as
applicable, to the extent, but only to the extent, of any direct, as opposed to
consequential or exemplary, damages suffered by the Company, or TWI, as
applicable, which the Company, or TWI, as applicable, proves were caused by the
L/C Issuer's willful misconduct or gross negligence or the L/C Issuer's wrongful
failure to pay under any Letter of Credit after the presentation to it by the
beneficiary of a sight draft and certificate(s) strictly complying with the
terms and conditions of a Letter of Credit. In furtherance and not in limitation
of the foregoing, the L/C Issuer may accept documents that appear on their face
to be in order, without responsibility for further investigation, regardless of
any notice or information to the contrary, and the L/C Issuer shall not be
responsible for the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign a Letter of Credit or the rights
or benefits thereunder or proceeds thereof, in whole or in part, which may prove
to be invalid or ineffective for any reason.

     (g) Cash Collateral. (i) Upon the request of the Administrative Agent, or
the Canadian Lender, as applicable, if, as of the Letter of Credit Expiration
Date, any L/C Obligation for any reason remains outstanding, the Company shall,
in each case, immediately Cash Collateralize the then Outstanding Amount of all
L/C Obligations.

          (ii) In addition, if the Administrative Agent or the Canadian Lender
     notifies the Company or TWI at any time that the Outstanding Amount of all
     L/C Obligations at such time exceeds the U.S. Letter of Credit Sublimit or
     the Canadian Letter of Credit Sublimit then in effect, then, within two
     Business Days after receipt of such notice, the

                                       41
<PAGE>
     Company shall Cash Collateralize the L/C Obligations in an amount equal to
     the amount by which the Outstanding Amount of all L/C Obligations exceeds
     the U.S. Letter of Credit Sublimit or the Canadian Letter of Credit
     Sublimit, as applicable.

          (iii) The Administrative Agent or the Canadian Lender may, at any time
     and from time to time after the initial deposit of Cash Collateral, request
     that additional Cash Collateral be provided in order to protect against the
     results of exchange rate fluctuations.

          (iv) Sections 2.05 and 8.02(c) set forth certain additional
     requirements to deliver Cash Collateral hereunder. For purposes of this
     Section 2.03, Section 2.05 and Section 8.02(c), "Cash Collateralize" means
     to pledge and deposit with or deliver to the Administrative Agent, for the
     benefit of the L/C Issuer and the Lenders, as collateral for the L/C
     Obligations, cash or deposit account balances pursuant to documentation in
     form and substance reasonably satisfactory to the Administrative Agent and
     the L/C Issuer (which documents are hereby consented to by the Lenders).
     Derivatives of such term have corresponding meanings. The Company hereby
     grants to the Administrative Agent, for the benefit of the L/C Issuer and
     the Lenders, a security interest in all such cash, deposit accounts and all
     balances therein and all proceeds of the foregoing. Cash Collateral shall
     be maintained in blocked, non-interest bearing deposit accounts at Bank of
     America.

     (h) Applicability of ISP and UCP. Unless otherwise expressly agreed by the
L/C Issuer and the Company when a Letter of Credit is issued (including any such
agreement applicable to an Existing Letter of Credit), (i) the rules of the ISP
shall apply to each standby Letter of Credit, and (ii) the rules of the Uniform
Customs and Practice for Documentary Credits, as most recently published by the
International Chamber of Commerce at the time of issuance shall apply to each
commercial Letter of Credit.

     (i) Letter of Credit Fees. With regard to Letters of Credit issued under
the U.S. Revolving Credit Facility, the Company shall pay to the Administrative
Agent for the account of each Lender in accordance with its Applicable
Percentage, in Dollars, a Letter of Credit fee (the "Letter of Credit Fee") (i)
for each commercial Letter of Credit equal to 0.125% of 1% per annum times the
Dollar Equivalent of the daily amount available to be drawn under such Letter of
Credit, and (ii) for each standby Letter of Credit equal to the Applicable Rate
times the Dollar Equivalent of the daily amount available to be drawn under such
Letter of Credit. With regard to any Letters of Credit issued under the Canadian
Revolving Credit Facility, TWI shall pay the equivalent amounts as provided
above in Canadian Dollars to the Canadian Lender. For purposes of computing the
daily amount available to be drawn under any Letter of Credit, the amount of
such Letter of Credit shall be determined in accordance with Section 1.08.
Letter of Credit Fees shall be (i) computed on a quarterly basis in arrears and
(ii) due and payable on the first Business Day after the end of each March,
June, September and December, commencing with the first such date to occur after
the issuance of such Letter of Credit, on the Letter of Credit Expiration Date
and thereafter on demand. If there is any change in the Applicable Rate during
any quarter, the daily amount available to be drawn under each standby Letter of
Credit shall be computed and multiplied by the Applicable Rate separately for
each period during such quarter that such Applicable Rate was in effect.
Notwithstanding anything to the contrary contained

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<PAGE>
herein, upon the request of the Required Lenders, while any Event of Default
exists, all Letter of Credit Fees shall accrue at the Default Rate.

     (j) Fronting Fee and Documentary and Processing Charges Payable to L/C
Issuer. The Company, or TWI, as applicable, shall pay directly to the L/C Issuer
for its own account, in Dollars, or Canadian Dollars, as applicable, a fronting
fee (i) with respect to each commercial Letter of Credit, at the rate specified
in the Fee Letter, computed on the Dollar Equivalent, or Canadian Dollar
Equivalent, as applicable, of the amount of such Letter of Credit, and payable
upon the issuance thereof, (ii) with respect to any amendment of a commercial
Letter of Credit increasing the amount of such Letter of Credit, at a rate
separately agreed between the Company and the L/C Issuer, computed on the Dollar
Equivalent, or Canadian Dollar Equivalent, as applicable, of the amount of such
increase, and payable upon the effectiveness of such amendment, and (iii) with
respect to each standby Letter of Credit, at the rate per annum specified in the
Fee Letter, computed on the Dollar Equivalent, or the Canadian Dollar
Equivalent, as applicable, of the daily amount available to be drawn under such
Letter of Credit on a quarterly basis in arrears. Such fronting fee shall be due
and payable on the tenth Business Day after the end of each March, June,
September and December in respect of the most recently-ended quarterly period
(or portion thereof, in the case of the first payment), commencing with the
first such date to occur after the issuance of such Letter of Credit, on the
Letter of Credit Expiration Date and thereafter on demand. For purposes of
computing the daily amount available to be drawn under any Letter of Credit, the
amount of such Letter of Credit shall be determined in accordance with Section
1.08. In addition, the Company, or TWI, as applicable, shall pay directly to the
L/C Issuer for its own account, in Dollars, or Canadian Dollars, as applicable,
the customary issuance, presentation, amendment and other processing fees, and
other standard costs and charges, of the L/C Issuer relating to letters of
credit as from time to time in effect. Such customary fees and standard costs
and charges are due and payable on demand and are nonrefundable.

     (k) Conflict with Issuer Documents. In the event of any conflict between
the terms hereof and the terms of any Issuer Document, the terms hereof shall
control.

     (l) Letters of Credit Issued for Subsidiaries. Notwithstanding that a
Letter of Credit issued or outstanding hereunder is in support of any
obligations of, or is for the account of, a Subsidiary, the Company shall be
obligated to reimburse the L/C Issuer hereunder for any and all drawings under
such Letter of Credit. The Company hereby acknowledges that the issuance of
Letters of Credit for the account of Subsidiaries inures to the benefit of the
Company, and that the Company's business derives substantial benefits from the
businesses of such Subsidiaries.

     2.04 SWING LINE LOANS.

     (a) The Swing Line. Subject to the terms and conditions set forth herein,
the Swing Line Lender agrees, in reliance upon the agreements of the other
Lenders set forth in this Section 2.04, to make loans in Dollars (each such
loan, a "Swing Line Loan") to the Company from time to time on any Business Day
during the Availability Period in an aggregate amount not to exceed at any time
outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that
such Swing Line Loans, when aggregated with the Applicable Percentage of the
Outstanding Amount of Committed Loans and L/C Obligations of the Lender acting
as Swing Line Lender,

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<PAGE>
may exceed the amount of such Lender's Commitment; provided, however, that after
giving effect to any Swing Line Loan, (i) the Total Outstandings under the U.S.
Revolving Credit Facility shall not exceed the U.S. Revolver Ceiling, and (ii)
the aggregate Outstanding Amount of the Committed Loans of any Lender, plus such
Lender's Applicable Percentage of the Outstanding Amount of all L/C Obligations,
plus such Lender's Applicable Percentage of the Outstanding Amount of all Swing
Line Loans shall not exceed such Lender's Commitment, and provided, further,
that (i) the Company shall not use the proceeds of any Swing Line Loan to
refinance any outstanding Swing Line Loan. Within the foregoing limits, and
subject to the other terms and conditions hereof, the Company may borrow under
this Section 2.04, prepay under Section 2.05, and reborrow under this Section
2.04. Notwithstanding the Company's ability to borrow and reborrow hereunder,
each Swing Line Loan shall be repaid in full not later than ten (10) Business
Days after the date such loan was made. Each Swing Line Loan shall bear interest
at a rate equal to the Base Rate minus one percent (1.0%). Immediately upon the
making of a Swing Line Loan, each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the Swing Line Lender a
risk participation in such Swing Line Loan in an amount equal to the product of
such Lender's Applicable Percentage times the amount of such Swing Line Loan.

     (b) Borrowing Procedures. Each Swing Line Borrowing shall be made upon the
Company's irrevocable notice to the Swing Line Lender and the Administrative
Agent, which may be given by telephone. Each such notice must be received by the
Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on the
requested borrowing date, and shall specify (i) the amount to be borrowed, which
shall be a minimum of $100,000, and (ii) the requested borrowing date, which
shall be a Business Day. Each such telephonic notice must be confirmed promptly
by delivery to the Swing Line Lender and the Administrative Agent of a written
Swing Line Loan Notice, appropriately completed and signed by a Responsible
Officer of the Company. Promptly after receipt by the Swing Line Lender of any
telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with the
Administrative Agent (by telephone or in writing) that the Administrative Agent
has also received such Swing Line Loan Notice and, if not, the Swing Line Lender
will notify the Administrative Agent (by telephone or in writing) of the
contents thereof. Unless the Swing Line Lender has received notice (by telephone
or in writing) from the Administrative Agent (including at the request of any
Lender) prior to 2:00 p.m. on the date of the proposed Swing Line Borrowing (A)
directing the Swing Line Lender not to make such Swing Line Loan as a result of
the limitations set forth in the proviso to the first sentence of Section
2.04(a), or (B) that one or more of the applicable conditions specified in
Article IV is not then satisfied, then, subject to the terms and conditions
hereof, the Swing Line Lender will, not later than 2:00 p.m. on the borrowing
date specified in such Swing Line Loan Notice, make the amount of its Swing Line
Loan available to the Company at its office by crediting the account of the
Company on the books of the Swing Line Lender in Same Day Funds.

     (c) Refinancing of Swing Line Loans.

          (i) The Swing Line Lender at any time in its sole and absolute
     discretion may request, on behalf of the Company (which hereby irrevocably
     authorizes the Swing Line Lender to so request on its behalf), that each
     Lender make a Base Rate Committed Loan in an amount equal to such Lender's
     Applicable Percentage of the amount of Swing Line

                                       44
<PAGE>
     Loans then outstanding. Such request shall be made in writing (which
     written request shall be deemed to be a Committed Loan Notice for purposes
     hereof) and in accordance with the requirements of Section 2.02, without
     regard to the minimum and multiples specified therein for the principal
     amount of Base Rate Loans, but subject to the unutilized portion of the
     Aggregate Commitments and the conditions set forth in Section 4.02. The
     Swing Line Lender shall furnish the Company with a copy of the applicable
     Committed Loan Notice promptly after delivering such notice to the
     Administrative Agent. Each Lender shall make an amount equal to its
     Applicable Percentage of the amount specified in such Committed Loan Notice
     available to the Administrative Agent in Same Day Funds for the account of
     the Swing Line Lender at the Administrative Agent's Office for
     Dollar-denominated payments not later than 10:00 a.m. on the day specified
     in such Committed Loan Notice, whereupon, subject to Section 2.04(c)(ii),
     each Lender that so makes funds available shall be deemed to have made a
     Base Rate Committed Loan to the Company in such amount. The Administrative
     Agent shall remit the funds so received to the Swing Line Lender.

          (ii) If for any reason any Swing Line Loan cannot be refinanced by
     such a Committed Borrowing in accordance with Section 2.04(c)(i), the
     request for Base Rate Committed Loans submitted by the Swing Line Lender as
     set forth herein shall be deemed to be a request by the Swing Line Lender
     that each of the Lenders fund its risk participation in the relevant Swing
     Line Loan and each Lender's payment to the Administrative Agent for the
     account of the Swing Line Lender pursuant to Section 2.04(c)(i) shall be
     deemed payment in respect of such participation.

          (iii) If any Lender fails to make available to the Administrative
     Agent for the account of the Swing Line Lender any amount required to be
     paid by such Lender pursuant to the foregoing provisions of this Section
     2.04(c) by the time specified in Section 2.04(c)(i), the Swing Line Lender
     shall be entitled to recover from such Lender (acting through the
     Administrative Agent), on demand, such amount with interest thereon for the
     period from the date such payment is required to the date on which such
     payment is immediately available to the Swing Line Lender at a rate per
     annum equal to the applicable Overnight Rate from time to time in effect. A
     certificate of the Swing Line Lender submitted to any Lender (through the
     Administrative Agent) with respect to any amounts owing under this clause
     (iii) shall be conclusive absent manifest error.

          (iv) Each Lender's obligation to make Committed Loans or to purchase
     and fund risk participations in Swing Line Loans pursuant to this Section
     2.04(c) shall be absolute and unconditional and shall not be affected by
     any circumstance, including (A) any setoff, counterclaim, recoupment,
     defense or other right which such Lender may have against the Swing Line
     Lender, the Company or any other Person for any reason whatsoever, (B) the
     occurrence or continuance of a Default, or (C) any other occurrence, event
     or condition, whether or not similar to any of the foregoing; provided,
     however, that each Lender's obligation to make Committed Loans pursuant to
     this Section 2.04(c) is subject to the conditions set forth in Section
     4.02. No such funding of risk participations shall relieve or otherwise
     impair the obligation of the Company to repay Swing Line Loans, together
     with interest as provided herein.

                                       45
<PAGE>
     (d)  Repayment of Participations.

          (i) At any time after any Lender has purchased and funded a risk
     participation in a Swing Line Loan, if the Swing Line Lender receives any
     payment on account of such Swing Line Loan, the Swing Line Lender will
     distribute to such Lender its Applicable Percentage of such payment
     (appropriately adjusted, in the case of interest payments, to reflect the
     period of time during which such Lender's risk participation was funded) in
     the same funds as those received by the Swing Line Lender.

          (ii) If any payment received by the Swing Line Lender in respect of
     principal or interest on any Swing Line Loan is required to be returned by
     the Swing Line Lender under any of the circumstances described in Section
     10.05 (including pursuant to any settlement entered into by the Swing Line
     Lender in its discretion), each Lender shall pay to the Swing Line Lender
     its Applicable Percentage thereof on demand of the Administrative Agent,
     plus interest thereon from the date of such demand to the date such amount
     is returned, at a rate per annum equal to the applicable Overnight Rate.
     The Administrative Agent will make such demand upon the request of the
     Swing Line Lender. The obligations of the Lenders under this clause shall
     survive the payment in full of the Obligations and the termination of this
     Agreement.

     (e) Interest for Account of Swing Line Lender. The Swing Line Lender shall
be responsible for invoicing the Company for interest on the Swing Line Loans.
Until each Lender funds its Base Rate Committed Loan or risk participation
pursuant to this Section 2.04 to refinance such Lender's Applicable Percentage
of any Swing Line Loan, interest in respect of such Applicable Percentage shall
be solely for the account of the Swing Line Lender.

     (f) Payments Directly to Swing Line Lender. The Company shall make all
payments of principal and interest in respect of the Swing Line Loans directly
to the Swing Line Lender.

     2.05 SECURITY. All Obligations of Borrowers under this Agreement, all other
Loan Documents, and any obligations arising pursuant to a Swap Contract, shall
be secured by the Collateral in accordance with the Loan Documents.

     2.06 PREPAYMENTS. (a) Each Borrower may, upon notice from the Company to
the Administrative Agent, at any time or from time to time voluntarily prepay
Committed Loans in whole or in part without premium or penalty; provided that
(i) such notice must be received by the Administrative Agent not later than
10:00 a.m. (A) three Business Days prior to any date of prepayment of
Eurocurrency Rate Loans denominated in Dollars, (B) four Business Days (or five,
in the case of prepayment of Loans denominated in Special Notice Currencies)
prior to any date of prepayment of Eurocurrency Rate Loans denominated in
Alternative Currencies, and (C) on the date of prepayment of Base Rate Committed
Loans; (ii) any prepayment of Eurocurrency Rate Loans denominated in Dollars
shall be in a principal amount of $1,000,000 or a whole multiple of $1,000,000
in excess thereof; and (iii) any prepayment of Eurocurrency Rate Loans
denominated in Alternative Currencies shall be in a minimum principal amount of
$1,000,000 or a whole multiple of $1,000,000 in excess thereof. Each such notice
shall specify the date and amount of such prepayment and the Type(s) of
Committed Loans to be prepaid and, if Eurocurrency Loans are to be prepaid, the
Interest Period(s) of such Loans. The

                                       46
<PAGE>
Administrative Agent will promptly notify each Lender of its receipt of each
such notice, and of the amount of such Lender's Applicable Percentage of such
prepayment. If such notice is given by the Company, the applicable Borrower
shall make such prepayment and the payment amount specified in such notice shall
be due and payable on the date specified therein. Any prepayment of a
Eurocurrency Rate Loan shall be accompanied by all accrued interest on the
amount prepaid, together with any additional amounts required pursuant to
Section 3.05. Each such prepayment shall be applied to the Committed Loans of
the Lenders in accordance with their respective Applicable Percentages.

     (b) The Company may, upon notice to the Swing Line Lender (with a copy to
the Administrative Agent), at any time or from time to time, voluntarily prepay
Swing Line Loans in whole or in part without premium or penalty; provided that
(i) such notice must be received by the Swing Line Lender and the Administrative
Agent not later than 10:00 a.m. on the date of the prepayment, and (ii) any such
prepayment shall be in a minimum principal amount of $100,000. Each such notice
shall specify the date and amount of such prepayment. If such notice is given by
the Company, the Company shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified therein.

     (c) If the Administrative Agent notifies the Company at any time that the
Total Outstandings under either the U.S. Revolving Credit Facility or the
Canadian Revolving Credit Facility at such time exceed the U.S. Revolver Ceiling
or the Canadian Revolver Ceiling, respectively, or the Aggregate Commitments
then in effect, then, within two Business Days after receipt of such notice, the
Borrowers shall prepay Loans and/or the Company shall Cash Collateralize the L/C
Obligations in an aggregate amount sufficient to reduce such Outstanding Amount
as of such date of payment to an amount not to exceed 100% of the U.S. Revolver
Ceiling or the Canadian Revolver Ceiling, respectively, or the Aggregate
Commitments then in effect; provided, however, that, subject to the provisions
of Section 2.03(g)(ii), the Company shall not be required to Cash Collateralize
the L/C Obligations pursuant to this Section 2.05(c) unless after the prepayment
in full of the Loans the Total Outstandings exceed the U.S. Revolver Ceiling or
the Canadian Revolver Ceiling, respectively, or the Aggregate Commitments then
in effect. The Administrative Agent may, at any time and from time to time after
the initial deposit of such Cash Collateral, request that additional Cash
Collateral be provided in order to protect against the results of further
exchange rate fluctuations.

     (d) If the Administrative Agent notifies the Company at any time that the
Outstanding Amount of all Loans denominated in Alternative Currencies at such
time exceeds the Alternative Currency Sublimit then in effect, then, within two
Business Days after receipt of such notice, the Borrowers shall prepay Loans in
an aggregate amount sufficient to reduce such Outstanding Amount as of such date
of payment to an amount not to exceed 100% of the Alternative Currency Sublimit
then in effect.

     2.07 TERMINATION OR REDUCTION OF COMMITMENTS. The Company may, upon notice
to the Administrative Agent, terminate the Aggregate Commitments, or from time
to time permanently reduce the Aggregate Commitments; provided that (i) any such
notice shall be received by the Administrative Agent not later than 11:00 a.m.
five Business Days prior to the date of termination or reduction, (ii) any such
partial reduction shall be in an aggregate amount of $1,000,000 or any whole
multiple of $1,000,000 in excess thereof, (iii) the Company shall not

                                       47
<PAGE>
terminate or reduce the Aggregate Commitments if, after giving effect thereto
and to any concurrent prepayments hereunder, the Total Outstandings would exceed
the Aggregate Commitments, and (iv) if, after giving effect to any reduction of
the Aggregate Commitments, the Alternative Currency Sublimit, the U.S. Letter of
Credit Sublimit or the Canadian Letter of Credit Sublimit, or the Swing Line
Sublimit exceeds the amount of the Aggregate Commitments, such Sublimit shall be
automatically reduced by the amount of such excess. The Administrative Agent
will promptly notify the Lenders of any such notice of termination or reduction
of the Aggregate Commitments. The amount of any such Aggregate Commitment
reduction shall not be applied to the Alternative Currency Sublimit or the U.S.
Letter of Credit Sublimit or the Canadian Letter of Credit Sublimit unless
otherwise specified by the Company. Any reduction of the Aggregate Commitments
shall be applied to the Commitment of each Lender according to its Applicable
Percentage. All fees accrued until the effective date of any termination of the
Aggregate Commitments shall be paid on the effective date of such termination.

     2.08 REPAYMENT OF LOANS.(a) Each Borrower shall repay to the Lenders on the
Maturity Date the aggregate principal amount of Committed Loans made to such
Borrower outstanding on such date, including any Overdrafts outstanding.

     (b) The Company shall repay each Swing Line Loan on the earlier to occur of
(i) the date ten Business Days after such Loan is made and (ii) the Maturity
Date.

     2.09 INTEREST.(a) Subject to the provisions of subsection (b) below, (i)
each Eurocurrency Rate Loan shall bear interest on the outstanding principal
amount thereof for each Interest Period at a rate per annum equal to the
Eurocurrency Rate for such Interest Period plus the Applicable Rate, plus (in
the case of a Eurocurrency Rate Loan of any Lender which is lent from a Lending
Office in the United Kingdom or a Participating Member State) the Mandatory
Cost; (ii) each Base Rate Committed Loan shall bear interest on the outstanding
principal amount thereof from the applicable borrowing date at a rate per annum
equal to the Base Rate plus the Applicable Rate; and (iii) each Swing Line Loan
shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the Base Rate minus one
percent (1.0%).

     (b)  (i) If any amount of principal of any Loan is not paid when due
(without regard to any applicable grace periods), whether at stated maturity, by
acceleration or otherwise, such amount shall thereafter bear interest at a
fluctuating interest rate per annum at all times equal to the Default Rate to
the fullest extent permitted by applicable Laws.

          (ii) If any amount (other than principal of any Loan) payable by any
     Borrower under any Loan Document is not paid when due (without regard to
     any applicable grace periods), whether at stated maturity, by acceleration
     or otherwise, then upon the request of the Required Lenders, such amount
     shall thereafter bear interest at a fluctuating interest rate per annum at
     all times equal to the Default Rate to the fullest extent permitted by
     applicable Laws.

          (iii) Upon the request of the Required Lenders, while any Event of
     Default exists, the Borrowers shall pay interest on the principal amount of
     all outstanding

                                       48
<PAGE>
     Obligations hereunder at a fluctuating interest rate per annum at all times
     equal to the Default Rate to the fullest extent permitted by applicable
     Laws.

          (iv) Accrued and unpaid interest on past due amounts (including
     interest on past due interest) shall be due and payable upon demand.

     (c) Interest on each Loan shall be due and payable in arrears on each
Interest Payment Date applicable thereto and at such other times as may be
specified herein. Interest hereunder shall be due and payable in accordance with
the terms hereof before and after judgment, and before and after the
commencement of any proceeding under any Debtor Relief Law.

     (d) For the purposes of the Interest Act (Canada), and to the extent such
Act shall apply to such loan, (i) whenever a rate of interest or fee rate
hereunder is calculated on the basis of a year (the "deemed year") that contains
fewer days than the actual number of days in the calendar year of calculation,
such rate of interest or fee rate shall be expressed as a yearly rate by
multiplying such rate of interest or fee rate by the actual number of days in
the calendar year of calculation and dividing it by the number of days in the
deemed year, (ii) the principle of deemed reinvestment of interest shall not
apply to any interest calculation hereunder and (iii) the rates of interest
stipulated herein are intended to be nominal rates and not effective rates or
yields.

     2.10 FEES. In addition to certain fees described in subsections (i) and (j)
of Section 2.03:

     (a) Commitment Fee. The Company shall pay to the Administrative Agent for
the account of each Lender in accordance with its Applicable Percentage, a
commitment fee in Dollars equal to the Applicable Rate times the actual daily
amount by which the Aggregate Commitments (including only the U.S. Revolving
Credit Facility) exceed the sum of (i) the Outstanding Amount of Committed
Loans, excluding the Canadian Revolving Credit Facility, and (ii) the
Outstanding Amount of L/C Obligations, excluding the Canadian Revolving Credit
Facility. TWI shall pay to the Canadian Lender for the account of the Canadian
Lender a commitment fee in Canadian Dollars equal to the Applicable Rate times
the actual daily amount by which the Aggregate Commitments (including only the
Canadian Revolving Credit Facility) exceed the sum of (i) the outstanding amount
of Committed Loans under the Canadian Revolving Credit Facility and (ii) the
outstanding number of L/C Obligations under the Canadian Revolving Credit
Facility. The commitment fee shall accrue at all times during the Availability
Period, including at any time during which one or more of the conditions in
Article IV is not met, and shall be due and payable quarterly in arrears on the
last Business Day of each March, June, September and December, commencing with
the first such date to occur after the Closing Date, and on the Maturity Date.
The commitment fee shall be calculated quarterly in arrears, and if there is any
change in the Applicable Rate during any quarter, the actual daily amount shall
be computed and multiplied by the Applicable Rate separately for each period
during such quarter that such Applicable Rate was in effect.

     (b) Other Fees.

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<PAGE>
          (i) The Company shall pay to the Arranger and the Administrative Agent
for their own respective accounts, in Dollars, fees in the amounts and at the
times specified in the Fee Letter. Such fees shall be fully earned when paid and
shall not be refundable for any reason whatsoever.

          (ii) The Company shall pay to the Lenders, in Dollars, such fees as
shall have been separately agreed upon in writing in the amounts and at the
times so specified. Such fees shall be fully earned when paid and shall not be
refundable for any reason whatsoever.

          (iii) The Borrowers agree (a) to pay or reimburse the Administrative
Agent, on behalf of the Lenders, for all reasonable costs and expenses incurred
in connection with the development, preparation, negotiation and execution of
this Agreement and the other Loan Documents and any amendment, waiver, consent
or other modification of the provisions hereof and thereof (whether or not the
transactions contemplated hereby or thereby are consummated), and the
consummation and administration of the transactions contemplated hereby and
thereby, including all Attorney Costs, and (b) to pay or reimburse the Lenders
for all reasonable costs and expenses incurred in connection with the
enforcement, attempted enforcement, or preservation of any rights or remedies
under this Agreement or the other Loan Documents (including all such costs and
expenses incurred during any "workout" or restructuring in respect of the
Obligations and during any legal proceeding, including any proceeding under any
Debtor Relief Law), including all Attorney Costs. The foregoing costs and
expenses shall include all search, filing, recording, title insurance and
appraisal charges and fees and taxes related thereto, and other out-of-pocket
expenses incurred by the Lenders and the cost of independent public accountants
and other outside experts retained by Lenders. All amounts due under this
Section 2.10 shall be payable within ten Business Days after demand therefor.
The agreements in this Section shall survive the termination of the Aggregate
Commitments and repayment of all other Obligations

     2.11 COMPUTATION OF INTEREST AND FEES. Except as provided in Section
2.09(d), all computations of interest for Base Rate Loans when the Base Rate is
determined by Bank of America's "prime rate" shall be made on the basis of a
year of 365 or 366 days, as the case may be, and actual days elapsed. All other
computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable,
being paid than if computed on the basis of a 365-day year), or, in the case of
interest in respect of Committed Loans denominated in Alternative Currencies as
to which market practice differs from the foregoing, in accordance with such
market practice. Interest shall accrue on each Loan for the day on which the
Loan is made, and shall not accrue on a Loan, or any portion thereof, for the
day on which the Loan or such portion is paid, provided that any Loan that is
repaid on the same day on which it is made shall, subject to Section 2.12(a),
bear interest for one day. Each determination by the Administrative Agent of an
interest rate or fee hereunder shall be conclusive and binding for all purposes,
absent manifest error.

     2.12 EVIDENCE OF DEBT.(a) The Credit Extensions made by each Lender shall
be evidenced by one or more accounts or records maintained by such Lender and by
the Administrative Agent in the ordinary course of business. The accounts or
records maintained by the Administrative Agent and each Lender shall be
conclusive absent manifest error of the amount of the Credit Extensions made by
the Lenders to the Borrowers and the interest and payments thereon. Any failure
to so record or any error in doing so shall not, however, limit or

                                       50
<PAGE>
otherwise affect the obligation of the Borrowers hereunder to pay any amount
owing with respect to the Obligations. In the event of any conflict between the
accounts and records maintained by any Lender and the accounts and records of
the Administrative Agent in respect of such matters, the accounts and records of
the Administrative Agent shall control in the absence of manifest error. Upon
the request of any Lender to a Borrower made through the Administrative Agent,
such Borrower shall execute and deliver to such Lender (through the
Administrative Agent) a Note, which shall evidence such Lender's Loans to such
Borrower in addition to such accounts or records. Each Lender may attach
schedules to a Note and endorse thereon the date, Type (if applicable), amount,
currency and maturity of its Loans and payments with respect thereto.

     (b) In addition to the accounts and records referred to in subsection (a),
each Lender and the Administrative Agent shall maintain in accordance with its
usual practice accounts or records evidencing the purchases and sales by such
Lender of participations in Letters of Credit and Swing Line Loans. In the event
of any conflict between the accounts and records maintained by the
Administrative Agent and the accounts and records of any Lender in respect of
such matters, the accounts and records of the Administrative Agent shall control
in the absence of manifest error.

     2.13 PAYMENTS GENERALLY; ADMINISTRATIVE AGENT'S CLAWBACK.(a) General. All
payments to be made by the Borrowers shall be made without condition or
deduction for any counterclaim, defense, recoupment or setoff. Except as
otherwise expressly provided herein and except with respect to principal of and
interest on Loans denominated in an Alternative Currency, all payments by the
Borrowers hereunder shall be made to the Administrative Agent, for the account
of the respective Lenders to which such payment is owed, at the applicable
Administrative Agent's Office in Dollars and in Same Day Funds not later than
1:00 p.m. on the date specified herein. Except as otherwise expressly provided
herein, all payments by the Borrowers hereunder with respect to principal and
interest on Loans denominated in an Alternative Currency shall be made to the
Administrative Agent, for the account of the respective Lenders to which such
payment is owed, at the applicable Administrative Agent's Office in such
Alternative Currency and in Same Day Funds not later than the Applicable Time
specified by the Administrative Agent on the dates specified herein. Without
limiting the generality of the foregoing, the Administrative Agent may require
that any payments due under this Agreement be made in the United States. If, for
any reason, any Borrower is prohibited by any Law from making any required
payment hereunder in an Alternative Currency, such Borrower shall make such
payment in Dollars in the Dollar Equivalent of the Alternative Currency payment
amount. The Administrative Agent will promptly distribute to each Lender its
Applicable Percentage (or other applicable share as provided herein) of such
payment in like funds as received by wire transfer to such Lender's Lending
Office. All payments received by the Administrative Agent (i) after 1:00 p.m.,
in the case of payments in Dollars, or (ii) after the Applicable Time specified
by the Administrative Agent in the case of payments in an Alternative Currency,
shall in each case be deemed received on the next succeeding Business Day and
any applicable interest or fee shall continue to accrue. If any payment to be
made by any Borrower shall come due on a day other than a Business Day, payment
shall be made on the next following Business Day, and such extension of time
shall be reflected in computing interest or fees, as the case may be.

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<PAGE>
      (b) (i) Funding by Lenders; Presumption by Administrative Agent. Unless
the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Committed Borrowing of Eurocurrency Rate Loans (or, in the
case of any Committed Borrowing of Base Rate Loans, prior to 12:00 noon on the
date of such Committed Borrowing) that such Lender will not make available to
the Administrative Agent such Lender's share of such Committed Borrowing, the
Administrative Agent may assume that such Lender has made such share available
on such date in accordance with Section 2.02 (or, in the case of a Committed
Borrowing of Base Rate Loans, that such Lender has made such share available in
accordance with and at the time required by Section 2.02) and may, in reliance
upon such assumption, make available to the applicable Borrower a corresponding
amount. In such event, if a Lender has not in fact made its share of the
applicable Committed Borrowing available to the Administrative Agent, then the
applicable Lender and the applicable Borrower severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount in Same Day
Funds with interest thereon, for each day from and including the date such
amount is made available to such Borrower to but excluding the date of payment
to the Administrative Agent, at (A) in the case of a payment to be made by such
Lender, the Overnight Rate and (B) in the case of a payment to be made by such
Borrower, the interest rate applicable to Base Rate Loans. If such Borrower and
such Lender shall pay such interest to the Administrative Agent for the same or
an overlapping period, the Administrative Agent shall promptly remit to such
Borrower the amount of such interest paid by such Borrower for such period. If
such Lender pays its share of the applicable Committed Borrowing to the
Administrative Agent, then the amount so paid shall constitute such Lender's
Committed Loan included in such Committed Borrowing. Any payment by such
Borrower shall be without prejudice to any claim such Borrower may have against
a Lender that shall have failed to make such payment to the Administrative
Agent.

      (ii) Payments by Borrowers; Presumptions by Administrative Agent. Unless
the Administrative Agent shall have received notice from a Borrower prior to the
date on which any payment is due to the Administrative Agent for the account of
the Lenders or the L/C Issuer hereunder that such Borrower will not make such
payment, the Administrative Agent may assume that such Borrower has made such
payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders or the L/C Issuer, as the case may be, the
amount due. In such event, if such Borrower has not in fact made such payment,
then each of the Lenders or the L/C Issuer, as the case may be, severally agrees
to repay to the Administrative Agent forthwith on demand the amount so
distributed to such Lender or the L/C Issuer, in Same Day Funds with interest
thereon, for each day from and including the date such amount is distributed to
it to but excluding the date of payment to the Administrative Agent, at the
Overnight Rate.

      A notice of the Administrative Agent to any Lender or Borrower with
respect to any amount owing under this subsection (b) shall be conclusive,
absent manifest error.

      (c) Failure to Satisfy Conditions Precedent. If any Lender makes available
to the Administrative Agent funds for any Loan to be made by such Lender to any
Borrower as provided in the foregoing provisions of this Article II, and such
funds are not made available to such Borrower by the Administrative Agent
because the conditions to the applicable Credit Extension set forth in Article
IV are not satisfied or waived in accordance with the terms hereof,

                                       52
<PAGE>

the Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.

      (d) Obligations of Lenders Several. The obligations of the Lenders
hereunder to make Committed Loans, to fund participations in Letters of Credit
and Swing Line Loans and to make payments pursuant to Section 10.04(c) are
several and not joint. The failure of any Lender to make any Committed Loan, to
fund any such participation or to make any payment under Section 10.04(c) on any
date required hereunder shall not relieve any other Lender of its corresponding
obligation to do so on such date, and no Lender shall be responsible for the
failure of any other Lender to so make its Committed Loan, to purchase its
participation or to make its payment under Section 10.04(c).

      (e) Funding Source. Nothing herein shall be deemed to obligate any Lender
to obtain the funds for any Loan in any particular place or manner or to
constitute a representation by any Lender that it has obtained or will obtain
the funds for any Loan in any particular place or manner.

      2.14 SHARING OF PAYMENTS BY LENDERS. If any Lender shall, by exercising
any right of setoff or counterclaim or otherwise, obtain payment in respect of
any principal of or interest on any of the Committed Loans made by it, or the
participations in L/C Obligations or in Swing Line Loans held by it resulting in
such Lender's receiving payment of a proportion of the aggregate amount of such
Committed Loans or participations and accrued interest thereon greater than its
pro rata share thereof as provided herein, then the Lender receiving such
greater proportion shall (a) notify the Administrative Agent of such fact, and
(b) purchase (for cash at face value) participations in the Committed Loans and
subparticipations in L/C Obligations and Swing Line Loans of the other Lenders,
or make such other adjustments as shall be equitable, so that the benefit of all
such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective
Committed Loans and other amounts owing them, provided that:

            (i) if any such participations or subparticipations are purchased
      and all or any portion of the payment giving rise thereto is recovered,
      such participations or subparticipations shall be rescinded and the
      purchase price restored to the extent of such recovery, without interest;
      and

            (ii) the provisions of this Section shall not be construed to apply
      to (x) any payment made by a Borrower pursuant to and in accordance with
      the express terms of this Agreement or (y) any payment obtained by a
      Lender as consideration for the assignment of or sale of a participation
      in any of its Committed Loans or subparticipations in L/C Obligations or
      Swing Line Loans to any assignee or participant, other than to the Company
      or any Subsidiary thereof (as to which the provisions of this Section
      shall apply).

      Each Borrower consents to the foregoing and agrees, to the extent it may
effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against such
Loan Party rights of setoff and counterclaim with

                                       53
<PAGE>

respect to such participation as fully as if such Lender were a direct creditor
of such Loan Party in the amount of such participation.

      2.15 INCREASE IN COMMITMENTS.

      (a) Request for Increase. Provided there exists no Default, upon notice to
the Administrative Agent (which shall promptly notify the Lenders), the Company
may from time to time, request an increase in the Aggregate Commitments by an
amount (for all such requests) not exceeding $50,000,000; provided that (i) any
such request for an increase shall be in a minimum amount of $5,000,000. At the
time of sending such notice, the Company (in consultation with the
Administrative Agent) shall specify the time period within which each Lender is
requested to respond (which shall in no event be less than ten Business Days
from the date of delivery of such notice to the Lenders).

      (b) Lender Elections to Increase. Each Lender shall notify the
Administrative Agent within such time period whether or not it agrees to
increase its Commitment and, if so, whether by an amount equal to, greater than,
or less than its Applicable Percentage of such requested increase. Any Lender
not responding within such time period shall be deemed to have declined to
increase its Commitment.

      (c) Notification by Administrative Agent; Additional Lenders. The
Administrative Agent shall notify the Company and each Lender of the Lenders'
responses to each request made hereunder. To achieve the full amount of a
requested increase and subject to the approval of the Administrative Agent and
the L/C Issuer (which approvals shall not be unreasonably withheld), the Company
may also invite additional Eligible Assignees to become Lenders pursuant to a
joinder agreement in form and substance reasonably satisfactory to the
Administrative Agent and its counsel.

      (d) Effective Date and Allocations. If the Aggregate Commitments are
increased in accordance with this Section, the Administrative Agent and the
Company shall determine the effective date (the "Increase Effective Date") and
the final allocation of such increase. The Administrative Agent shall promptly
notify the Company and the Lenders of the final allocation of such increase and
the Increase Effective Date.

      (e) Conditions to Effectiveness of Increase. As a condition precedent to
such increase, the Company shall deliver to the Administrative Agent a
certificate of each Loan Party dated as of the Increase Effective Date (in
sufficient copies for each Lender) signed by a Responsible Officer of such Loan
Party (i) certifying and attaching the resolutions adopted by such Loan Party
approving or consenting to such increase, and (ii) in the case of the Company,
certifying that, before and after giving effect to such increase, (A) the
representations and warranties contained in Article V and the other Loan
Documents are true and correct in all material respects on and as of the
Increase Effective Date, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true
and correct in all material respects as of such earlier date, and except that
for purposes of this Section 2.16, the representations and warranties contained
in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most
recent statements furnished pursuant to clauses (a) and (b), respectively, of
Section 6.01, and (B) no Default exists. The Borrowers shall prepay any

                                       54
<PAGE>

Committed Loans outstanding on the Increase Effective Date (and pay any
additional amounts required pursuant to Section 3.05) to the extent necessary to
keep the outstanding Committed Loans ratable with any revised Applicable
Percentages arising from any nonratable increase in the Commitments under this
Section.

      (f) Conflicting Provisions. This Section shall supersede any provisions in
Sections 2.14 or 10.01 to the contrary.

                                  ARTICLE III.
                     TAXES, YIELD PROTECTION AND ILLEGALITY

      3.01 TAXES.

      (a) Payments Free of Taxes. Any and all payments by or on account of any
obligation of the respective Borrowers hereunder or under any other Loan
Document shall be made free and clear of and without reduction or withholding
for any Indemnified Taxes or Other Taxes, provided that if the applicable
Borrower shall be required by applicable law to deduct any Indemnified Taxes
(including any Other Taxes) from such payments, then (i) the sum payable shall
be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section)
the Administrative Agent, Lender or L/C Issuer, as the case may be, receives an
amount equal to the sum it would have received had no such deductions been made,
(ii) such Borrower shall make such deductions and (iii) such Borrower shall
timely pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

      (b) Payment of Other Taxes by the Borrowers. Without limiting the
provisions of subsection (a) above, each Borrower shall timely pay any Other
Taxes to the relevant Governmental Authority in accordance with applicable law.

      (c) Indemnification by the Borrowers. Each Borrower shall indemnify the
Administrative Agent, each Lender and the L/C Issuer, within 10 days after
demand therefor, for the full amount of any Indemnified Taxes or Other Taxes
(including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) paid by the Administrative
Agent, such Lender or the L/C Issuer, as the case may be, and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes or Other Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to
the amount of such payment or liability delivered to a Borrower by a Lender or
the L/C Issuer (with a copy to the Administrative Agent), or by the
Administrative Agent on its own behalf or on behalf of a Lender or the L/C
Issuer, shall be conclusive absent manifest error.

      (d) Evidence of Payments. As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by any Borrower to a Governmental Authority,
such Borrower shall deliver to the Administrative Agent the original or a
certified copy of a receipt issued by such Governmental Authority evidencing
such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to the Administrative Agent.

                                       55
<PAGE>

      (e) Status of Lenders. Without the prior written consent of the Borrowers,
no Person that is either (a) organized or incorporated under the laws of a
jurisdiction or (b) resident for tax purposes in a jurisdiction, other than that
in which such Borrower is resident for tax purposes, shall become a recipient of
any payment to be made by or on account of any obligation of any Borrower
hereunder, including as the Administrative Agent, a Lender, the L/C Issuer or
otherwise, for purposes of this provision, the United States, each State thereof
and the District of Columbia shall be deemed to constitute a single
jurisdiction. Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which a
Borrower is resident for tax purposes, or any treaty to which such jurisdiction
is a party, with respect to payments hereunder or under any other Loan Document
shall deliver to the Company (with a copy to the Administrative Agent), at the
time or times prescribed by applicable law or reasonably requested by the
Company or the Administrative Agent, such properly completed and executed
documentation prescribed by applicable law as will permit such payments to be
made without withholding or at a reduced rate of withholding. In addition, any
Lender, if requested by the Company or the Administrative Agent, shall deliver
such other documentation prescribed by applicable law or reasonably requested by
the Company or the Administrative Agent as will enable the Company or the
Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements.

      Without limiting the generality of the foregoing, in the event that a
Borrower is resident for tax purposes in the United States, any Foreign Lender
shall deliver to Company and the Administrative Agent (in such number of copies
as shall be requested by the recipient) on or prior to the date on which such
Foreign Lender becomes a Lender under this Agreement (and from time to time
thereafter upon the request of the Company or the Administrative Agent, but only
if such Foreign Lender is legally entitled to do so), whichever of the following
is applicable:

            (i) duly completed copies of Internal Revenue Service Form W-8BEN
      claiming eligibility for benefits of an income tax treaty to which the
      United States is a party,

            (ii) duly completed copies of Internal Revenue Service Form W-8ECI,

            (iii) in the case of a Foreign Lender claiming the benefits of the
      exemption for portfolio interest under section 881(c) of the Code, (x) a
      certificate to the effect that such Foreign Lender is not (A) a "bank"
      within the meaning of section 881(c)(3)(A) of the Code, (B) a "10 percent
      stockholder" of the applicable Borrower within the meaning of section
      881(c)(3)(B) of the Code, or (C) a "controlled foreign corporation"
      described in section 881(c)(3)(C) of the Code and (y) duly completed
      copies of Internal Revenue Service Form W-8BEN, or

            (iv) any other form prescribed by applicable law as a basis for
      claiming exemption from or a reduction in United States Federal
      withholding tax duly completed together with such supplementary
      documentation as may be prescribed by applicable law to permit the Company
      to determine the withholding or deduction required to be made.

      Without limiting the obligations of the Lenders set forth above regarding
delivery of certain forms and documents to establish each Lender's status for
U.S. withholding tax purposes,

                                       56
<PAGE>

each Lender agrees promptly to deliver to the Administrative Agent or the
Company, as the Administrative Agent or the Company shall reasonably request, on
or prior to the Closing Date, and in a timely fashion thereafter, such other
documents and forms required by any relevant taxing authorities under the Laws
of any other jurisdiction, duly executed and completed by such Lender, as are
required under such Laws to confirm such Lender's entitlement to any available
exemption from, or reduction of, applicable withholding taxes in respect of all
payments to be made to such Lender outside of the U.S. by the Borrowers pursuant
to this Agreement or otherwise to establish such Lender's status for withholding
tax purposes in such other jurisdiction. Each Lender shall promptly (i) notify
the Administrative Agent of any change in circumstances which would modify or
render invalid any such claimed exemption or reduction, and (ii) take such steps
as shall not be materially disadvantageous to it, in the reasonable judgment of
such Lender, and as may be reasonably necessary (including the re-designation of
its Lending Office) to avoid any requirement of applicable Laws of any such
jurisdiction that any Borrower make any deduction or withholding for taxes from
amounts payable to such Lender. Additionally, each of the Borrowers shall
promptly deliver to the Administrative Agent or any Lender, as the
Administrative Agent or such Lender shall reasonably request, on or prior to the
Closing Date, and in a timely fashion thereafter, such documents and forms
required by any relevant taxing authorities under the Laws of any jurisdiction,
duly executed and completed by such Borrower, as are required to be furnished by
such Lender or the Administrative Agent under such Laws in connection with any
payment by the Administrative Agent or any Lender of Taxes or Other Taxes, or
otherwise in connection with the Loan Documents, with respect to such
jurisdiction.

      (f) Treatment of Certain Refunds. If the Administrative Agent, any Lender
or the L/C Issuer determines, in its sole discretion, that it has received a
refund of any Taxes or Other Taxes as to which it has been indemnified by any
Borrower or with respect to which any Borrower has paid additional amounts
pursuant to this Section, it shall pay to such Borrower an amount equal to such
refund (but only to the extent of indemnity payments made, or additional amounts
paid, by such Borrower under this Section with respect to the Taxes or Other
Taxes giving rise to such refund), net of all out-of-pocket expenses of the
Administrative Agent, such Lender or the L/C Issuer, as the case may be, and
without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund), provided that each Borrower, upon the
request of the Administrative Agent, such Lender or the L/C Issuer, agrees to
repay the amount paid over to such Borrower (plus any penalties, interest or
other charges imposed by the relevant Governmental Authority) to the
Administrative Agent, such Lender or the L/C Issuer in the event the
Administrative Agent, such Lender or the L/C Issuer is required to repay such
refund to such Governmental Authority. This subsection shall not be construed to
require the Administrative Agent, any Lender or the L/C Issuer to make available
its tax returns (or any other information relating to its taxes that it deems
confidential) to any Borrower or any other Person.

      3.02 ILLEGALITY. If any Lender reasonably determines that any Law has made
it unlawful, or that any Governmental Authority has asserted that it is
unlawful, for any Lender or its applicable Lending Office to make, maintain or
fund Eurocurrency Rate Loans (whether denominated in Dollars or an Alternative
Currency), or to determine or charge interest rates based upon the Eurocurrency
Rate, or any Governmental Authority has imposed material restrictions on the
authority of such Lender to purchase or sell, or to take deposits of, Dollars or

                                       57
<PAGE>

any Alternative Currency in the applicable interbank market, then, on notice
thereof by such Lender to the Company through the Administrative Agent, any
obligation of such Lender to make or continue Eurocurrency Rate Loans in the
affected currency or currencies or, in the case of Eurocurrency Rate Loans in
Dollars, to convert Base Rate Committed Loans to Eurocurrency Rate Loans, shall
be suspended until such Lender notifies the Administrative Agent and the Company
that the circumstances giving rise to such determination no longer exist. Upon
receipt of such notice, the Borrowers shall, upon demand from such Lender (with
a copy to the Administrative Agent), prepay or, if applicable and such Loans are
denominated in Dollars, convert all such Eurocurrency Rate Loans of such Lender
to Base Rate Loans, either on the last day of the Interest Period therefor, if
such Lender may lawfully continue to maintain such Eurocurrency Rate Loans to
such day, or immediately, if such Lender may not lawfully continue to maintain
such Eurocurrency Rate Loans. Upon any such prepayment or conversion, the
Borrowers shall also pay accrued interest on the amount so prepaid or converted.

      3.03 INABILITY TO DETERMINE RATES. If the Required Lenders reasonably
determine that for any reason in connection with any request for a Eurocurrency
Rate Loan or a conversion to or continuation thereof that (a) deposits (whether
in Dollars or an Alternative Currency) are not being offered to banks in the
applicable offshore interbank market for such currency for the applicable amount
and Interest Period of such Eurocurrency Rate Loan, (b) adequate and reasonable
means do not exist for determining the Eurocurrency Rate for any requested
Interest Period with respect to a proposed Eurocurrency Rate Loan (whether
denominated in Dollars or an Alternative Currency), or (c) the Eurocurrency Rate
for any requested Interest Period with respect to a proposed Eurocurrency Rate
Loan does not adequately and fairly reflect the cost to such Lenders of funding
such Eurocurrency Rate Loan, the Administrative Agent will promptly so notify
the Company and each Lender. Thereafter, the obligation of the Lenders to make
or maintain Eurocurrency Rate Loans in the affected currency or currencies shall
be suspended until the Administrative Agent (upon the instruction of the
Required Lenders) revokes such notice. Upon receipt of such notice, the Company
may revoke any pending request for a Borrowing of, conversion to or continuation
of Eurocurrency Rate Loans in the affected currency or currencies or, failing
that, will be deemed to have converted such request into a request for a
Committed Borrowing of Base Rate Loans in the amount specified therein.

      3.04 INCREASED COSTS.

      (a) Increased Costs Generally. If any Change in Law shall:

            (i) impose, modify or deem applicable any reserve, special deposit,
      compulsory loan, insurance charge or similar requirement against assets
      of, deposits with or for the account of, or credit extended or
      participated in by, any Lender (except (A) any reserve requirement
      reflected in the Eurocurrency Rate and (B) the requirements of the Bank of
      England and the Financial Services Authority or the European Central Bank
      reflected in the Mandatory Cost, other than as set forth below) or the L/C
      Issuer;

            (ii) subject any Lender or the L/C Issuer to any tax of any kind
      whatsoever with respect to this Agreement, any Letter of Credit, any
      participation in a Letter of Credit or any Eurocurrency Rate Loan made by
      it, or change the basis of taxation of payments to such Lender or the L/C
      Issuer in respect thereof (except for Indemnified

                                       58
<PAGE>

      Taxes or Other Taxes covered by Section 3.01 and the imposition of, or any
      change in the rate of, any Excluded Tax payable by such Lender or the L/C
      Issuer);

            (iii) prevent the Mandatory Cost, as calculated hereunder, from
      representing the cost to any Lender of complying with the requirements of
      the Bank of England and/or the Financial Services Authority or the
      European Central Bank in relation to its making, funding or maintaining
      Eurocurrency Rate Loans; or

            (iv) impose on any Lender or the L/C Issuer or the London interbank
      market any other condition, cost or expense affecting this Agreement or
      Eurocurrency Rate Loans made by such Lender or any Letter of Credit or
      participation therein;

and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurocurrency Rate Loan (or of maintaining
its obligation to make any such Loan), or to increase the cost to such Lender or
the L/C Issuer of participating in, issuing or maintaining any Letter of Credit
(or of maintaining its obligation to participate in or to issue any Letter of
Credit), or to reduce the amount of any sum received or receivable by such
Lender or the L/C Issuer hereunder (whether of principal, interest or any other
amount) then, upon request of such Lender or the L/C Issuer, the Company will
pay to such Lender or the L/C Issuer, as the case may be, such additional amount
or amounts as will compensate such Lender or the L/C Issuer, as the case may be,
for such additional costs incurred or reduction suffered.

      (b) Capital Requirements. If any Lender or the L/C Issuer determines that
any Change in Law affecting such Lender or the L/C Issuer or any Lending Office
of such Lender or such Lender's or the L/C Issuer's holding company, if any,
regarding capital requirements has or would have the effect of reducing the rate
of return on such Lender's or the L/C Issuer's capital or on the capital of such
Lender's or the L/C Issuer's holding company, if any, as a consequence of this
Agreement, the Commitments of such Lender or the Loans made by, or
participations in Letters of Credit held by, such Lender, or the Letters of
Credit issued by the L/C Issuer, to a level below that which such Lender or the
L/C Issuer or such Lender's or the L/C Issuer's holding company could have
achieved but for such Change in Law (taking into consideration such Lender's or
the L/C Issuer's policies and the policies of such Lender's or the L/C Issuer's
holding company with respect to capital adequacy), then from time to time the
Company will pay to such Lender or the L/C Issuer, as the case may be, such
additional amount or amounts as will compensate such Lender or the L/C Issuer or
such Lender's or the L/C Issuer's holding company for any such reduction
suffered.

      (c) Certificates for Reimbursement. A certificate of a Lender and its
legal counsel or the L/C Issuer and its legal counsel setting forth the amount
or amounts necessary to compensate such Lender or the L/C Issuer or its holding
company, as the case may be, as specified in subsection (a) or (b) of this
Section and delivered to the Company shall be conclusive absent manifest error.
The Company shall pay to such Lender or the L/C Issuer, as the case may be, the
amount shown as due on any such certificate within 10 days after receipt
thereof.

      (d) Delay in Requests. Failure or delay on the part of any Lender or the
L/C Issuer to demand compensation pursuant to the foregoing provisions of this
Section shall not constitute a waiver of such Lender's or the L/C Issuer's right
to demand such compensation, provided that no

                                       59
<PAGE>

Borrower shall be required to compensate a Lender or the L/C Issuer pursuant to
the foregoing provisions of this Section for any increased costs incurred or
reductions suffered more than six months prior to the date that such Lender or
the L/C Issuer, as the case may be, notifies the Company of the Change in Law
giving rise to such increased costs or reductions and of such Lender's or the
L/C Issuer's intention to claim compensation therefor (except that, if the
Change in Law giving rise to such increased costs or reductions is retroactive,
then the six-month period referred to above shall be extended to include the
period of retroactive effect thereof).

      (e) Additional Reserve Requirements. The Company shall pay to each Lender,
as long as such Lender shall be required to comply with any reserve ratio
requirement or analogous requirement of any other central banking or financial
regulatory authority imposed in respect of the maintenance of the Commitments or
the funding of the Eurocurrency Rate Loans, such additional costs (expressed as
a percentage per annum and rounded upwards, if necessary, to the nearest five
decimal places) equal to the actual costs allocated to such Commitment or Loan
by such Lender (as determined by such Lender in good faith, which determination
shall be conclusive, absent manifest error), which in each case shall be due and
payable on each date on which interest is payable on such Loan, provided the
Company shall have received at least 10 days' prior notice (with a copy to the
Administrative Agent) of such additional costs from such Lender. If a Lender
fails to give notice 10 days prior to the relevant Interest Payment Date, such
additional costs shall be due and payable 10 days from receipt of such notice.

      3.05 COMPENSATION FOR LOSSES. Upon demand of any Lender (with a copy to
the Administrative Agent) from time to time, the Company shall promptly
compensate such Lender for and hold such Lender harmless from any loss, cost or
expense incurred by it as a result of:

      (a) any continuation, conversion, payment or prepayment of any Loan other
than a Base Rate Loan on a day other than the last day of the Interest Period
for such Loan (whether voluntary, mandatory, automatic, by reason of
acceleration, or otherwise);

      (b) any failure by any Borrower (for a reason other than the failure of
such Lender to make a Loan) to prepay, borrow, continue or convert any Loan
other than a Base Rate Loan on the date or in the amount notified by the
Company;

      (c) any failure by any Borrower to make payment of any Loan or drawing
under any Letter of Credit (or interest due thereon) denominated in an
Alternative Currency on its scheduled due date or any payment thereof in a
different currency; or

      (d) any assignment of a Eurocurrency Rate Loan on a day other than the
last day of the Interest Period therefor as a result of a request by the Company
pursuant to Section 10.13;

including any loss of anticipated profits, any foreign exchange losses and any
loss or expense arising from the liquidation or reemployment of funds obtained
by it to maintain such Loan, from fees payable to terminate the deposits from
which such funds were obtained or from the performance of any foreign exchange
contract. The Company shall also pay any customary administrative fees charged
by such Lender in connection with the foregoing.

For purposes of calculating amounts payable by the Company to the Lenders under
this Section 3.05, each Lender shall be deemed to have funded each Eurocurrency
Rate Loan made by it at

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the Eurocurrency Rate for such Loan by a matching deposit or other borrowing in
the offshore interbank market for such currency for a comparable amount and for
a comparable period, whether or not such Eurocurrency Rate Loan was in fact so
funded.

      3.06 MITIGATION OBLIGATIONS; REPLACEMENT OF LENDERS.

      (a) Designation of a Different Lending Office. If any Lender requests
compensation under Section 3.04, or any Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account of
any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to
Section 3.02, then such Lender shall use reasonable efforts to designate a
different Lending Office for funding or booking its Loans hereunder or to assign
its rights and obligations hereunder to another of its offices, branches or
affiliates, if, in the reasonable judgment of such Lender, such designation or
assignment (i) would eliminate or reduce amounts payable pursuant to Section
3.01 or 3.04, as the case may be, in the future, or eliminate the need for the
notice pursuant to Section 3.02, as applicable, and (ii) in each case, would not
subject such Lender to any unreimbursed cost or expense and would not otherwise
be disadvantageous to such Lender. The Company hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.

      (b) Replacement of Lenders. If any Lender requests compensation under
Section 3.04, or if any Borrower is required to pay any additional amount to any
Lender or any Governmental Authority for the account of any Lender pursuant to
Section 3.01, the Company may replace such Lender in accordance with Section
10.13.

      3.07 SURVIVAL. All of the Borrowers' obligations under this Article III
shall survive termination of the Aggregate Commitments and repayment of all
other Obligations hereunder.

                                   ARTICLE IV.
                    CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

      4.01 CONDITIONS OF INITIAL CREDIT EXTENSION. The obligation of the L/C
Issuer and each Lender to make its initial Credit Extension hereunder is subject
to satisfaction of the following conditions precedent:

      (a) The Administrative Agent's receipt of the following, each of which
shall be originals or telecopies (followed promptly by originals) unless
otherwise specified, each properly executed by a Responsible Officer of the
signing Loan Party, each dated the Closing Date (or, in the case of certificates
of governmental officials, a recent date before the Closing Date) and each in
form and substance satisfactory to the Administrative Agent and each of the
Lenders:

            (i) executed counterparts of this Agreement and the Guaranties,
      sufficient in number for distribution to the Administrative Agent, each
      Lender and the Borrowers;

            (ii) Notes executed by the Borrowers in favor of each Lender
      requesting Notes;

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            (iii) such certificates of resolutions or other action, incumbency
      certificates and/or other certificates of Responsible Officers of each
      Loan Party as the Administrative Agent may reasonably require evidencing
      the identity, authority and capacity of each Responsible Officer thereof
      authorized to act as a Responsible Officer in connection with this
      Agreement and the other Loan Documents to which such Loan Party is a
      party;

            (iv) such documents and certifications as the Administrative Agent
      may reasonably require to evidence that each Loan Party is duly organized
      or formed, and that each of the Company and the Subsidiary Guarantors is
      validly existing, in good standing, as applicable in their respective
      jurisdictions of formation, and qualified to engage in business in each
      jurisdiction where its ownership, lease or operation of properties or the
      conduct of its business requires such qualification, except to the extent
      that failure to do so could not reasonably be expected to have a Material
      Adverse Effect;

            (v) such executed documents as the Administrative Agent may require
      to perfect the Lenders' first priority security interest in the
      Collateral;

            (vi) evidence that the Administrative Agent, on behalf of the
      Lenders, shall have a perfected, first priority interest in the
      Collateral, subject to the liens set forth in Schedule 7.01, other than
      those to be removed in connection with the Existing Credit Agreement (and
      not including the TWI facility referenced therein);

            (vii) favorable opinions of Tonkon Torp LLP and Patterson Palmer,
      counsel to the Loan Parties, addressed to the Administrative Agent and
      each Lender, as to the matters set forth in Exhibit G and such other
      matters concerning the Loan Parties and the Loan Documents as the Required
      Lenders may reasonably request;

            (viii) a certificate of a Responsible Officer of each Loan Party
      either (A) attaching copies of all consents, licenses and approvals
      required in connection with the execution, delivery and performance by
      such Loan Party and the validity against such Loan Party of the Loan
      Documents to which it is a party, and such consents, licenses and
      approvals shall be in full force and effect, or (B) stating that no such
      consents, licenses or approvals are so required;

            (ix) a certificate signed by a Responsible Officer of the Company
      certifying (A) that the conditions specified in Sections 4.02(a) and (b)
      have been satisfied, (B) that there has been no event or circumstance
      since the date of the Audited Financial Statements that has had or could
      be reasonably expected to have, either individually or in the aggregate, a
      Material Adverse Effect, and (C) that there is no action, suit,
      investigation or proceeding pending or, to the knowledge of the Borrowers,
      threatened in any court or before any arbitrator or governmental authority
      that could reasonably be expected to (x) have a Material Adverse Effect;

            (x) a certificate of a Responsible Officer of each Subsidiary
      Guarantor certifying that there are no provisions contained in the
      articles or bylaws of the Subsidiary Guarantor, or any agreements to which
      the Subsidiary Guarantor is a party, that would limit the ability of a
      Subsidiary Guarantor to make a Restricted Payment or to

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<PAGE>

      otherwise transfer property to the Company, other than those existing on
      the Closing Date and listed in Schedule 7.09;

            (xi) a duly completed Compliance Certificate dated as of the last
      day of the fiscal quarter of the Company ended on February 28, 2005, as
      adjusted on a pro-forma basis to reflect the Senior Debt Offering, and
      signed by a Responsible Officer of the Company;

            (xii) evidence that all insurance required to be maintained pursuant
      to the Loan Documents has been obtained and is in effect;

            (xiii) evidence that the Existing Credit Agreements have been or,
      concurrently with the Closing Date, are being terminated and all Liens
      securing obligations under the Existing Credit Agreements have been or,
      concurrently with the Closing Date, are being released;

            (xiv) no representations made by the Company and its affiliates to
      Bank of America and the Arranger in connection with the transactions
      contemplated by this Credit Agreement shall be incorrect in any material
      respect, and the Administrative Agent and the Lenders have not learned of
      any additional information since April 13, 2005, that could reasonably be
      expected to result in a Material Adverse Effect;

            (xv) the Administrative Agent shall have received, in form and
      substance reasonably satisfactory to it, all environmental reports, asset
      appraisals, field audits, and such other reports, audits or certifications
      as it may reasonably request; and

            (xvi) such other assurances, certificates, documents, consents or
      opinions as the Administrative Agent, the L/C Issuer, the Swing Line
      Lender or the Required Lenders reasonably may require.

      (b) Notwithstanding the above, certain Loan Documents with respect to TWI
and Greenbrier Leasing, Ltd. may, in the sole discretion of the Administrative
Agent, be provided to the Administrative Agent up to five (5) Business Days
after the Closing Date.

      (c) Any fees required to be paid on or before the Closing Date shall have
been paid.

      (d) Unless waived by the Administrative Agent, the Company shall have paid
all fees, charges and disbursements of counsel to the Administrative Agent to
the extent invoiced prior to or on the Closing Date, plus such additional
amounts of such fees, charges and disbursements as shall constitute its
reasonable estimate of such fees, charges and disbursements incurred or to be
incurred by it through the closing proceedings (provided that such estimate
shall not thereafter preclude a final settling of accounts between the Company
and the Administrative Agent).

      (e) The Closing Date shall have occurred on or before June 30, 2005.

      Without limiting the generality of the provisions of Section 9.04, for
purposes of determining compliance with the conditions specified in this Section
4.01, each Lender that has signed this Agreement shall be deemed to have
consented to, approved or accepted or to be

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satisfied with, each document or other matter required thereunder to be
consented to or approved by or acceptable or satisfactory to a Lender unless the
Administrative Agent shall have received notice from such Lender prior to the
proposed Closing Date specifying its objection thereto.

      4.02 CONDITIONS TO ALL CREDIT EXTENSIONS. The obligation of each Lender to
honor any Request for Credit Extension (other than a Committed Loan Notice
requesting only a conversion of Committed Loans to the other Type, or a
continuation of Eurocurrency Rate Loans) is subject to the following conditions
precedent:

      (a) The representations and warranties of (i) the Borrowers contained in
Article V and (ii) each Loan Party contained in each other Loan Document or in
any document furnished at any time under or in connection herewith or therewith,
shall be true and correct in all material respects on and as of the date of such
Credit Extension, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and
correct in all material respects as of such earlier date, and except that for
purposes of this Section 4.02, the representations and warranties contained in
subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most
recent statements furnished pursuant to clauses (a) and (b), respectively, of
Section 6.01.

      (b) No Default shall exist, or would result from such proposed Credit
Extension or the application of the proceeds thereof.

      (c) The Administrative Agent and, if applicable, the L/C Issuer or the
Swing Line Lender shall have received a Request for Credit Extension in
accordance with the requirements hereof.

      (d) In the case of a Credit Extension to be denominated in an Alternative
Currency, there shall not have occurred any change in national or international
financial, political or economic conditions or currency exchange rates or
exchange controls which in the reasonable opinion of the Administrative Agent,
the Required Lenders (in the case of any Loans to be denominated in an
Alternative Currency) or the L/C Issuer (in the case of any Letter of Credit to
be denominated in an Alternative Currency) would make it impracticable for such
Credit Extension to be denominated in the relevant Alternative Currency.

      Each Request for Credit Extension (other than a Committed Loan Notice
requesting only a conversion of Committed Loans to the other Type or a
continuation of Eurocurrency Rate Loans) submitted by the Company shall be
deemed to be a representation and warranty that the conditions specified in
Sections 4.02(a) and (b) have been satisfied on and as of the date of the
applicable Credit Extension.

                                   ARTICLE V.
                         REPRESENTATIONS AND WARRANTIES

      Except as otherwise provided in Section 5.18, each of the Company, on
behalf of itself and the Subsidiary Guarantors, and TWI, solely on behalf of
itself, represents and warrants to the Administrative Agent and the Lenders
that:

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<PAGE>

      5.01 EXISTENCE, QUALIFICATION AND POWER; COMPLIANCE WITH LAWS. Each Loan
Party and each Subsidiary thereof (a) is duly organized or formed, validly
existing and in good standing under the Laws of the jurisdiction of its
incorporation or organization, (b) has all requisite power and authority and all
requisite governmental licenses, authorizations, consents and approvals to (i)
own or lease its assets and carry on its business and (ii) execute, deliver and
perform its obligations under the Loan Documents to which it is a party, (c) is
duly qualified and is licensed and in good standing under the Laws of each
jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification or license, and (d) is in
compliance with all Laws; except in each case referred to in clause (b)(i), (c)
or (d), to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect.

      5.02 AUTHORIZATION; NO CONTRAVENTION. The execution, delivery and
performance by each Loan Party of each Loan Document to which such Person is
party, have been duly authorized by all necessary corporate or other
organizational action, and do not (a) contravene the terms of any of such
Person's Organization Documents; (b) conflict with or result in any breach or
contravention of, or the creation of any Lien under, or require any payment to
be made under (i) any Contractual Obligation to which such Person is a party or
affecting such Person or the properties of such Person or any of its
Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental
Authority or any arbitral award to which such Person or its property is subject;
or (c) violate any Law. Each Loan Party and each Subsidiary thereof is in
compliance with all Contractual Obligations referred to in clause (b)(i), except
to the extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect.

      5.03 GOVERNMENTAL AUTHORIZATION; OTHER CONSENTS. No approval, consent,
exemption, authorization, or other action by, or notice to, or filing with, any
Governmental Authority or any other Person is necessary or required in
connection with the execution, delivery or performance by, or enforcement
against, any Loan Party of this Agreement or any other Loan Document.

      5.04 BINDING EFFECT. This Agreement has been, and each other Loan
Document, when delivered hereunder, will have been, duly executed and delivered
by each Loan Party that is party thereto. This Agreement constitutes, and each
other Loan Document when so delivered will constitute, a legal, valid and
binding obligation of such Loan Party, enforceable against each Loan Party that
is party thereto in accordance with its terms.

      5.05 FINANCIAL STATEMENTS; NO MATERIAL ADVERSE EFFECT; NO INTERNAL CONTROL
EVENT.

      (a) The Audited Financial Statements (i) were prepared in accordance with
GAAP consistently applied throughout the period covered thereby, except as
otherwise expressly noted therein; (ii) fairly present the financial condition
of the Company and its Subsidiaries as of the date thereof and their results of
operations for the period covered thereby in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly
noted therein; and (iii) show all material indebtedness and other liabilities,
direct or contingent, of the Company and its Subsidiaries as of the date
thereof, including liabilities for taxes, material commitments and Indebtedness.

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<PAGE>

      (b) The unaudited consolidated balance sheets of the Company and its
Subsidiaries dated February 28, 2005, and the related consolidated statements of
income or operations, stockholders' equity and cash flows for the fiscal quarter
ended on that date (i) were prepared in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly
noted therein, and (ii) fairly present the financial condition of the Company
and its Subsidiaries as of the date thereof and their results of operations for
the period covered thereby, subject, in the case of clauses (i) and (ii), to the
absence of footnotes and to normal year-end audit adjustments. Schedule 5.05
sets forth all material indebtedness and other liabilities exceeding $1,000,000,
direct or contingent, of the Company and its consolidated Subsidiaries as of the
date of such financial statements, including liabilities for taxes and
Indebtedness.

      (c) Since the date of the Audited Financial Statements, there has been no
event or circumstance, either individually or in the aggregate, that has had or
is reasonably expected to have a Material Adverse Effect.

      (d) Since the date of the Audited Financial Statements, no Internal
Control Event has occurred.

      5.06 LITIGATION. There are no actions, suits, proceedings, claims or
disputes pending or, to the knowledge of the Company after due and diligent
investigation, threatened or contemplated, at law, in equity, in arbitration or
before any Governmental Authority, by or against the Company or any of its
Subsidiaries or against any of their properties or revenues that (a) purport to
affect or pertain to this Agreement or any other Loan Document, or any of the
transactions contemplated hereby, or (b) except as specifically disclosed in
Schedule 5.06, either individually or in the aggregate, if determined adversely,
is reasonably be expected to have a Material Adverse Effect, and there has been
no adverse change in the status, or financial effect on any Loan Party or any
Subsidiary thereof, of the matters described on Schedule 5.06.

      5.07 NO DEFAULT. Neither the Company nor any Subsidiary is in default
under or with respect to any Contractual Obligation that could, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. No Default has occurred and is continuing or would result from
the consummation of the transactions contemplated by this Agreement or any other
Loan Document.

      5.08 OWNERSHIP OF PROPERTY; LIENS. Each of the Company and each Subsidiary
has good record and marketable title in fee simple to, or valid leasehold
interests in, all real property necessary or used in the ordinary conduct of its
business, except for such defects in title as could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. The
property of the Company and its Subsidiaries is subject to no Liens, other than
Liens permitted by Section 7.01 and those existing as of the date hereof.

      5.09 ENVIRONMENTAL COMPLIANCE. The Company and its Subsidiaries conduct in
the ordinary course of business a review of the effect of existing Environmental
Laws and claims alleging potential liability or responsibility for violation of
any Environmental Law on their respective businesses, operations and properties,
and as a result thereof the Company has reasonably concluded that, except as
specifically disclosed in Schedule 5.09, such Environmental

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<PAGE>

Laws and claims could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

      5.10 INSURANCE. The properties of the Company and its Subsidiaries are
insured with financially sound and reputable insurance companies that are not
Affiliates of the Company, in such amounts, and with such deductibles and
covering such risks as are customarily carried by companies engaged in similar
businesses and owning similar properties in localities where the Company or the
applicable Subsidiary operates.

      5.11 TAXES. The Company and its Subsidiaries have filed all Federal, state
and other material tax returns and reports required to be filed, and have paid
all Federal, state and other material taxes, assessments, fees and other
governmental charges levied or imposed upon them or their properties, income or
assets otherwise due and payable, except those which are being contested in good
faith by appropriate proceedings diligently conducted and for which adequate
reserves have been provided in accordance with GAAP. Except as disclosed to the
Administrative Agent in writing there is no proposed tax assessment against the
Company or any Subsidiary that would, if made, have a Material Adverse Effect.
Neither any Loan Party nor any Subsidiary thereof is party to any formal tax
sharing agreement.

      5.12 ERISA COMPLIANCE.

      (a) Each Plan is in compliance in all material respects with the
applicable provisions of ERISA, the Code and other Federal or state Laws. Each
Plan that is intended to qualify under Section 401(a) of the Code has received a
favorable determination letter from the IRS or an application for such a letter
is currently being processed by the IRS with respect thereto and, to the best
knowledge of the Company, nothing has occurred which would prevent, or cause the
loss of, such qualification. The Company and each ERISA Affiliate have made all
required contributions to each Plan subject to Section 412 of the Code, and no
application for a funding waiver or an extension of any amortization period
pursuant to Section 412 of the Code has been made with respect to any Plan.

      (b) There are no pending or, to the best knowledge of the Company,
threatened claims, actions or lawsuits, or action by any Governmental Authority,
with respect to any Plan that could reasonably be expected to have a Material
Adverse Effect. There has been no prohibited transaction or violation of the
fiduciary responsibility rules with respect to any Plan that has resulted or
could reasonably be expected to result in a Material Adverse Effect.

      (c) (i) No ERISA Event has occurred or is reasonably expected to occur;
(ii) no Pension Plan has any Unfunded Pension Liability; (iii) neither the
Company nor any ERISA Affiliate has incurred, or reasonably expects to incur,
any liability under Title IV of ERISA with respect to any Pension Plan (other
than premiums due and not delinquent under Section 4007 of ERISA); (iv) neither
the Company nor any ERISA Affiliate has incurred, or reasonably expects to
incur, any liability (and no event has occurred which, with the giving of notice
under Section 4219 of ERISA, would result in such liability) under Sections 4201
or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither the
Company nor any ERISA Affiliate has engaged in a transaction that could be
subject to Sections 4069 or 4212(c) of ERISA.

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<PAGE>

      5.13 SUBSIDIARIES; EQUITY INTERESTS. The Company has no Subsidiaries other
than those specifically disclosed in Part (a) of Schedule 5.13, and all of the
outstanding Equity Interests in such Subsidiaries have been validly issued, are
fully paid and nonassessable and are owned by a Loan Party in the amounts
specified on Part (a) of Schedule 5.13 free and clear of all Liens. The Company
has no equity investments in any other corporation or entity other than those
specifically disclosed in Part(b) of Schedule 5.13. All of the outstanding
Equity Interests in the Company have been validly issued and are fully paid and
nonassessable.

      5.14 MARGIN REGULATIONS; INVESTMENT COMPANY ACT; PUBLIC UTILITY HOLDING
COMPANY ACT.

      (a) No Borrower is engaged or will engage, principally or as one of its
important activities, in the business of purchasing or carrying margin stock
(within the meaning of Regulation U issued by the FRB), or extending credit for
the purpose of purchasing or carrying margin stock.

      (b) None of the Company, any Person Controlling the Company, or any
Subsidiary (i) is a "holding company," or a "subsidiary company" of a "holding
company," or an "affiliate" of a "holding company" or of a "subsidiary company"
of a "holding company," within the meaning of the Public Utility Holding Company
Act of 1935, or (ii) is or is required to be registered as an "investment
company" under the Investment Company Act of 1940.

      5.15 DISCLOSURE. The Company has disclosed to the Administrative Agent and
the Lenders all agreements, instruments and corporate or other restrictions to
which it or any of its Subsidiaries is subject, and all other matters known to
it, that, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect. No report, financial statement, certificate
or other information furnished (whether in writing or orally) by or on behalf of
any Loan Party to the Administrative Agent or any Lender in connection with the
transactions contemplated hereby and the negotiation of this Agreement or
delivered hereunder or under any other Loan Document (in each case, as modified
or supplemented by other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided that, with respect to all financial projections,
budgets, forecasts, pro forma data and other forward looking statements
("Projections") provided by the Company have been prepared in good faith based
upon assumptions believed to be reasonable at the time (it being understood that
such Projections are subject to significant uncertainties and contingencies,
many of which are beyond the Company's control, and that no assurance can be
given that any particular Projections will be realized).

      5.16 COMPLIANCE WITH LAWS. Each of the Company and each Subsidiary is in
compliance in all material respects with the requirements of all Laws and all
orders, writs, injunctions and decrees applicable to it or to its properties,
except in such instances in which (a) such requirement of Law or order, writ,
injunction or decree is being contested in good faith by appropriate proceedings
diligently conducted or (b) the failure to comply therewith, either individually
or in the aggregate, is not expected to have a Material Adverse Effect.

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<PAGE>

      5.17 INTELLECTUAL PROPERTY; LICENSES, ETC. The Company and its
Subsidiaries own, or possess the right to use, all of the trademarks, service
marks, trade names, copyrights, patents, patent rights, franchises, licenses and
other intellectual property rights (collectively, "IP Rights") that are
reasonably necessary for the operation of their respective businesses, without
conflict with the rights of any other Person. To the best knowledge of the
Company, no slogan or other advertising device, product, process, method,
substance, part or other material now employed, or now contemplated to be
employed, by the Company or any Subsidiary infringes upon any valid rights held
by any other Person. No claim or litigation regarding any of the foregoing is
pending or, to the best knowledge of the Company, threatened, which, either
individually or in the aggregate, is reasonably expected to have a Material
Adverse Effect.

      5.18 REPRESENTATIONS AS TO FOREIGN OBLIGORS. Each of the Company and each
Foreign Obligor represents and warrants to the Administrative Agent and the
Lenders that:

      (a) Such Foreign Obligor is subject to civil and commercial Laws with
respect to its obligations under this Agreement and the other Loan Documents to
which it is a party (collectively as to such Foreign Obligor, the "Applicable
Foreign Obligor Documents"), and the execution, delivery and performance by such
Foreign Obligor of the Applicable Foreign Obligor Documents constitute and will
constitute private and commercial acts and not public or governmental acts.
Neither such Foreign Obligor nor any of its property has any immunity from
jurisdiction of any court or from any legal process (whether through service or
notice, attachment prior to judgment, attachment in aid of execution, execution
or otherwise) under the laws of the jurisdiction in which such Foreign Obligor
is organized and existing in respect of its obligations under the Applicable
Foreign Obligor Documents.

      (b) The Applicable Foreign Obligor Documents are in proper legal form
under the Laws of the jurisdiction in which such Foreign Obligor is organized
and existing for the enforcement thereof against such Foreign Obligor under the
Laws of such jurisdiction, and to ensure the legality, validity, enforceability,
priority or admissibility in evidence of the Applicable Foreign Obligor
Documents. It is not necessary to ensure the legality, validity, enforceability,
priority or admissibility in evidence of the Applicable Foreign Obligor
Documents that the Applicable Foreign Obligor Documents be filed, registered or
recorded with, or executed or notarized before, any court or other authority in
the jurisdiction in which such Foreign Obligor is organized and existing or that
any registration charge or stamp or similar tax be paid on or in respect of the
Applicable Foreign Obligor Documents or any other document, except for (i) any
such filing, registration, recording, execution or notarization as has been made
or is not required to be made until the Applicable Foreign Obligor Document or
any other document is sought to be enforced and (ii) any charge or tax as has
been timely paid.

      (c) There is no tax, levy, impost, duty, fee, assessment or other
governmental charge, or any deduction or withholding, imposed by any
Governmental Authority in or of the jurisdiction in which such Foreign Obligor
is organized and existing either (i) on or by virtue of the execution or
delivery of the Applicable Foreign Obligor Documents or (ii) on any payment to
be made by such Foreign Obligor pursuant to the Applicable Foreign Obligor
Documents, except as has been disclosed to the Administrative Agent.

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<PAGE>

      (d) The execution, delivery and performance of the Applicable Foreign
Obligor Documents executed by such Foreign Obligor are, under applicable foreign
exchange control regulations of the jurisdiction in which such Foreign Obligor
is organized and existing, not subject to any notification or authorization
except (i) such as have been made or obtained or (ii) such as cannot be made or
obtained until a later date (provided that any notification or authorization
described in clause (ii) shall be made or obtained as soon as is reasonably
practicable).

                                   ARTICLE VI.
                              AFFIRMATIVE COVENANTS

      So long as any Lender shall have any Commitment hereunder, any Loan or
other Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of
Credit shall remain outstanding, the Company shall, and shall (except in the
case of the covenants set forth in Sections 6.01, 6.02, and 6.03) cause each
Subsidiary to:

      6.01 FINANCIAL STATEMENTS. Deliver to the Administrative Agent and each
Lender, in form and detail satisfactory to the Administrative Agent and the
Required Lenders:

      (a) as soon as available, but in any event within 90 days after the end of
each fiscal year of the Company (commencing with the fiscal year ended August
31, 2005), a consolidated balance sheet of the Company and its Subsidiaries as
at the end of such fiscal year, and the related consolidated statements of
income or operations, stockholders' equity and cash flows for such fiscal year,
setting forth in each case in comparative form the figures for the previous
fiscal year, all in reasonable detail and prepared in accordance with GAAP, such
consolidated statements to be audited and accompanied by (i) a report and
opinion of a Registered Public Accounting Firm of nationally recognized standing
reasonably acceptable to the Required Lenders, which report and opinion shall be
prepared in accordance with generally accepted auditing standards and applicable
Securities Laws and shall not be subject to any "going concern" or like
qualification or exception or any qualification or exception as to the scope of
such audit and (ii) an attestation report of such Registered Public Accounting
Firm as to the Borrower's internal controls pursuant to Section 404 of
Sarbanes-Oxley expressing a conclusion to which the Required Lenders do not
reasonably object; and

      (b) as soon as available, but in any event within 45 days after the end of
each of the first three fiscal quarters of each fiscal year of the Company
(commencing with the fiscal quarter ended May 31, 2005), a consolidated balance
sheet of the Company and its Subsidiaries as at the end of such fiscal quarter,
and the related consolidated statements of income or operations, stockholders'
equity and cash flows for such fiscal quarter and for the portion of the
Company's fiscal year then ended, setting forth in each case in comparative form
the figures for the corresponding fiscal quarter of the previous fiscal year and
the corresponding portion of the previous fiscal year, all in reasonable detail,
such consolidated statements to be certified by a Responsible Officer of the
Company as fairly presenting the financial condition, results of operations,
stockholders' equity and cash flows of the Company and its Subsidiaries in

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accordance with GAAP, subject only to normal year-end audit adjustments and the
absence of footnotes; and

      (c) as soon as available, but in any event at least 45 days after the
beginning of each fiscal year of the Company, forecasts prepared by management
of the Company, in form reasonably satisfactory to the Administrative Agent and
the Required Lenders, of consolidated balance sheets and statements of income or
operations and cash flows of the Company and its Subsidiaries on a monthly basis
for such fiscal year (including the fiscal year in which the Maturity Date
occurs).

As to any information contained in materials furnished pursuant to Section
6.02(d), the Company shall not be separately required to furnish such
information under clause (a) or (b) above, but the foregoing shall not be in
derogation of the obligation of the Company to furnish the information and
materials described in clauses (a) and (b) above at the times specified therein.

      6.02 CERTIFICATES; OTHER INFORMATION. Deliver to the Administrative Agent
and each Lender, in form and detail reasonably satisfactory to the
Administrative Agent and the Required Lenders:

      (a) within 45 days after the end of each fiscal quarter, a Borrowing Base
Certificate as of the last day of such fiscal quarter;

      (b) upon a pledge of assets, permitted pursuant to Section 7.01, or at the
Company's sole discretion upon the acquisition of assets by the Company or any
of its Subsidiaries outside of the ordinary course of business (but otherwise
permitted hereunder), an updated Borrowing Base Certificate as of the most
recently completed fiscal quarter which incorporates the acquired or pledged
assets to reflect such assets on a pro-forma basis;

      (b) concurrently with the delivery of the financial statements referred to
in Sections 6.01(a) and (b) (commencing with the delivery of the financial
statements for the fiscal quarter ended May 31, 2005), a duly completed
Compliance Certificate signed by a Responsible Officer of the Company;

      (c) promptly after any request by the Administrative Agent or any Lender,
copies of any detailed audit reports, management letters or recommendations
submitted to the board of directors (or the audit committee of the board of
directors) of the Company by independent accountants in connection with the
accounts or books of the Company or any Subsidiary, or any audit of any of them;

      (d) promptly after the same are available, copies of each annual report,
proxy or financial statement or other report or communication sent to all of the
stockholders of the Company, and copies of all annual, regular, periodic and
special reports and registration statements which the Company may file or be
required to file with the SEC under Section 13 or 15(d) of the Securities
Exchange Act of 1934, and not otherwise required to be delivered to the
Administrative Agent pursuant hereto; and

      (e) promptly after the furnishing thereof, copies of any statement or
report furnished to any holder of debt securities of any Loan Party or any
Subsidiary thereof pursuant to the terms

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<PAGE>

of any indenture, loan or credit or similar agreement and not otherwise required
to be furnished to the Lenders pursuant to Section 6.01 or any other clause of
this Section 6.02; and

      (f) promptly, and in any event within five Business Days after receipt
thereof by any Loan Party or any Subsidiary thereof, copies of each notice or
other correspondence received from the SEC (or comparable agency in any
applicable non-U.S. jurisdiction) concerning any investigation or possible
investigation or other inquiry by such agency regarding financial or other
operational results of any Loan Party or any Subsidiary thereof; and

      (g) promptly, such additional information regarding the business,
financial or corporate affairs of the Company or any Subsidiary, or compliance
with the terms of the Loan Documents, as the Administrative Agent or any Lender
may from time to time reasonably request;

      (h) upon closing of any offering of Term Debt which affects the U.S.
Borrowing Base or the Canadian Borrowing Base, an updated Borrowing Base
Certificate; and

      (i) within thirty (30) days after closing of any offering of Term Debt, a
certificate signed by a Responsible Officer which confirms that such offering
(i) did not cause an Event of Default, and (ii) the documentation associated
with such offering, a copy of which shall be attached to the certificate, does
not impose a limitation on the ability of the Company or its Subsidiaries to
make Restricted Payments to the Company or its Subsidiaries.

      Documents required to be delivered pursuant to Section 6.01(a) or (b) or
Section 6.02(d) (to the extent any such documents are included in materials
otherwise filed with the SEC) may be delivered electronically and if so
delivered, shall be deemed to have been delivered on the date (i) on which the
Company posts such documents, or provides a link thereto on the Company's
website on the Internet at the website address listed on Schedule 10.02; or (ii)
on which such documents are posted on the Company's behalf on an Internet or
intranet website, if any, to which each Lender and the Administrative Agent have
access (whether a commercial, third-party website or whether sponsored by the
Administrative Agent); provided that: (i) the Company shall deliver paper copies
of such documents to the Administrative Agent or any Lender that requests the
Company to deliver such paper copies until a written request to cease delivering
paper copies is given by the Administrative Agent or such Lender and (ii) the
Company shall notify the Administrative Agent and each Lender (by telecopier or
electronic mail) of the posting of any such documents and provide to the
Administrative Agent by electronic mail electronic versions (i.e., soft copies)
of such documents. Notwithstanding anything contained herein, in every instance
the Company shall be required to provide paper copies of the Compliance
Certificates required by Section 6.02(b) to the Administrative Agent. Except for
such Compliance Certificates, the Administrative Agent shall have no obligation
to request the delivery or to maintain copies of the documents referred to
above, and in any event shall have no responsibility to monitor compliance by
the Company with any such request for delivery, and each Lender shall be solely
responsible for requesting delivery to it or maintaining its copies of such
documents.

      Each Borrower hereby acknowledges that (a) the Administrative Agent and/or
the Arranger will make available to the Lenders and the L/C Issuer materials
and/or information

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<PAGE>

provided by or on behalf of such Borrower hereunder (collectively, "Borrower
Materials") by posting the Borrower Materials on IntraLinks or another similar
electronic system (the "Platform") and (b) certain of the Lenders may be
"public-side" Lenders (i.e., Lenders that do not wish to receive material
non-public information with respect to any Borrower or its securities) (each, a
"Public Lender"). Each Borrower hereby agrees that so long as such Borrower is
the issuer of any outstanding debt or equity securities that are registered or
issued pursuant to a private offering or is actively contemplating issuing any
such securities (w) all Borrower Materials that are to be made available to
Public Lenders shall be clearly and conspicuously marked "PUBLIC" which, at a
minimum, shall mean that the word "PUBLIC" shall appear prominently on the first
page thereof; (x) by marking Borrower Materials "PUBLIC," the Borrowers shall be
deemed to have authorized the Administrative Agent, the Arranger, the L/C Issuer
and the Lenders to treat such Borrower Materials as not containing any material
non-public information with respect to the Borrowers or their respective
securities for purposes of United States Federal and state securities laws
(provided, however, that to the extent such Borrower Materials constitute
Information, they shall be treated as set forth in Section 10.07); (y) all
Borrower Materials marked "PUBLIC" are permitted to be made available through a
portion of the Platform designated "Public Investor;" and (z) the Administrative
Agent and the Arranger shall be entitled to treat any Borrower Materials that
are not marked "PUBLIC" as being suitable only for posting on a portion of the
Platform not designated "Public Investor." Notwithstanding the foregoing, no
Borrower shall be under any obligation to mark any Borrower Materials "PUBLIC."

      6.03 NOTICES. Promptly notify the Administrative Agent and each Lender:

      (a) of the occurrence of any Default;

      (b) of any matter that has resulted or is reasonably expected to result in
a Material Adverse Effect;

      (c) of the occurrence of any ERISA Event;

      (d) of any material change in accounting policies or financial reporting
practices by the Company or any Subsidiary; and

      (e) of the occurrence of any Internal Control Event.

      Each notice pursuant to this Section shall be accompanied by a statement
of a Responsible Officer of the Company setting forth details of the occurrence
referred to therein and stating what action the Company has taken and proposes
to take with respect thereto. Each notice pursuant to Section 6.03(a) shall
describe with particularity any and all provisions of this Agreement and any
other Loan Document that have been breached.

      6.04 PAYMENT OF OBLIGATIONS. Pay and discharge as the same shall become
due and payable, all its obligations and liabilities, including (a) all tax
liabilities, assessments and governmental charges or levies upon it or its
properties or assets, unless the same are being contested in good faith by
appropriate proceedings diligently conducted and adequate reserves in accordance
with GAAP are being maintained by the Company or such Subsidiary; (b) all lawful
claims which, if unpaid, would by law become a Lien upon its property; and (c)
all Indebtedness,

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<PAGE>

as and when due and payable, but subject to any subordination provisions
contained in any instrument or agreement evidencing such Indebtedness.

      6.05 PRESERVATION OF EXISTENCE, ETC. With respect to Subsidiaries, other
than Immaterial Subsidiaries, (a) preserve, renew and maintain in full force and
effect its legal existence and good standing under the Laws of the jurisdiction
of its organization except in a transaction permitted by Section 7.04 or 7.05;
(b) take all reasonable action to maintain all rights, privileges, permits,
licenses and franchises necessary or desirable in the normal conduct of its
business, except to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect; and (c) preserve or renew all of its
registered patents, trademarks, trade names and service marks, the
non-preservation of which could reasonably be expected to have a Material
Adverse Effect.

      6.06 MAINTENANCE OF PROPERTIES. (a) Maintain, preserve and protect all of
its material properties and equipment necessary in the operation of its business
in good working order and condition, ordinary wear and tear excepted; (b) make
all necessary repairs thereto and renewals and replacements thereof except where
the failure to do so could not reasonably be expected to have a Material Adverse
Effect; and (c) use the standard of care typical in the industry in the
operation and maintenance of its material facilities.

      6.07 MAINTENANCE OF INSURANCE. Maintain with financially sound and
reputable insurance companies not Affiliates of the Company, insurance with
respect to its properties and business against loss or damage of the kinds
customarily insured against by Persons engaged in the same or similar business,
of such types and in such amounts (after giving effect to any self-insurance
compatible with the following standards) as are customarily carried under
similar circumstances by such other Persons.

      6.08 COMPLIANCE WITH LAWS. Comply in all material respects with the
requirements of all Laws and all orders, writs, injunctions and decrees
applicable to it or to its business or property, except in such instances in
which (a) such requirement of Law or order, writ, injunction or decree is being
contested in good faith by appropriate proceedings diligently conducted; or (b)
the failure to comply therewith could not reasonably be expected to have a
Material Adverse Effect.

      6.09 BOOKS AND RECORDS. (a) Maintain proper books of record and account,
in which full, true and correct entries in conformity with GAAP consistently
applied shall be made of all financial transactions and matters involving the
assets and business of the Company or such Subsidiary, as the case may be; and
(b) maintain such books of record and account in material conformity with all
applicable requirements of any Governmental Authority having regulatory
jurisdiction over the Company or such Subsidiary, as the case may be.

      6.10 INSPECTION RIGHTS. Permit representatives and independent contractors
of the Administrative Agent and each Lender to visit and inspect any of its
properties, to examine its corporate, financial and operating records, and make
copies thereof or abstracts therefrom, and to discuss its affairs, finances and
accounts with its Responsible Officers, and independent public accountants, all
at the expense of the Administrative Agent and each Lender, unless an Event of
Default has occurred and is continuing, and at such reasonable times during
normal business

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<PAGE>

hours and as often as may be reasonably desired, upon reasonable advance notice
to the Company; provided, however, that when an Event of Default exists the
Administrative Agent or any Lender (or any of their respective representatives
or independent contractors) may do any of the foregoing at the expense of the
Company at any time during normal business hours and without advance notice.

      6.11 USE OF PROCEEDS. Use the proceeds of the Credit Extensions for
general corporate purposes not in contravention of any Law or of any Loan
Document.

      6.12 APPROVALS AND AUTHORIZATIONS. Maintain all authorizations, consents,
approvals and licenses from, exemptions of, and filings and registrations with,
each Governmental Authority of the jurisdiction in which each Foreign Obligor is
organized and existing, and all approvals and consents of each other Person in
such jurisdiction, in each case that are required in connection with the Loan
Documents.

      6.13 ADDITIONAL SUBSIDIARY GUARANTORS. Notify the Administrative Agent at
the time that any Person becomes a Domestic Subsidiary, and promptly thereafter
(and in any event within 30 days), cause such Person to (a) become a Subsidiary
Guarantor by executing and delivering to the Administrative Agent a counterpart
of the Subsidiary Guaranty or such other document as the Administrative Agent
shall deem appropriate for such purpose, and (b) deliver to the Administrative
Agent documents of the types referred to in clauses (iii) and (iv) of Section
4.01(a) and favorable opinions of counsel to such Person (which shall cover,
among other things, the legality, validity, binding effect and enforceability of
the documentation referred to in clause (a)), all in form, content and scope
reasonably satisfactory to the Administrative Agent; provided that any Domestic
Subsidiary that constitutes an Immaterial Subsidiary need not become a
Subsidiary Guarantor until such time as it ceases to be an Immaterial
Subsidiary, or it contributes assets to the U.S. Borrowing Base.

                                  ARTICLE VII.
                               NEGATIVE COVENANTS

      So long as any Lender shall have any Commitment hereunder, any Loan or
other Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of
Credit shall remain outstanding, the Company shall not, nor shall it permit any
Subsidiary to, directly or indirectly:

      7.01 LIENS. Create, incur, assume or suffer to exist any Lien upon any of
its property, assets or revenues, whether now owned or hereafter acquired, other
than the following:

      (a) Liens pursuant to any Loan Document;

      (b) Liens existing on the date hereof and listed on Schedule 7.01 and any
renewals or extensions thereof, provided that (i) the property covered thereby
is not changed, (ii) the amount secured or benefited thereby is not increased,
(iii) the direct or any contingent obligor with respect thereto is not changed,
and (iv) any renewal or extension of the obligations secured or benefited
thereby is permitted by Section 7.03(b);

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<PAGE>

      (c) Liens for taxes not yet due or which are being contested in good faith
and by appropriate proceedings diligently conducted, if adequate reserves with
respect thereto are maintained on the books of the applicable Person in
accordance with GAAP;

      (d) carriers', warehousemen's, mechanics', materialmen's, repairmen's or
other like Liens arising in the ordinary course of business which are not
overdue for a period of more than 30 days or which are being contested in good
faith and by appropriate proceedings diligently conducted, if adequate reserves
with respect thereto are maintained on the books of the applicable Person;

      (e) pledges or deposits in the ordinary course of business in connection
with workers' compensation, unemployment insurance and other social security
legislation, other than any Lien imposed by ERISA;

      (f) deposits to secure the performance of bids, trade contracts and leases
(other than Indebtedness), statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature incurred in the
ordinary course of business;

      (g) easements, rights-of-way, restrictions and other similar encumbrances
affecting real property which, in the aggregate, are not substantial in amount,
and which do not in any case materially detract from the value of the property
subject thereto or materially interfere with the ordinary conduct of the
business of the applicable Person;

      (h) Liens securing judgments for the payment of money not constituting an
Event of Default under Section 8.01(h);

      (i) Liens securing Indebtedness permitted under Section 7.03(f); provided
that (i) such Liens do not at any time encumber any property other than the
property financed by such Indebtedness and (ii) the Indebtedness secured thereby
does not exceed the cost or fair market value, whichever is lower, of the
property being acquired on the date of acquisition; and

      (j) Liens held by Gunderson, Inc. on the assets of Greenbrier-Concarril,
LLC to secure any Indebtedness owed from Greenbrier-Concarril, LLC to Gunderson,
Inc.

      7.02 INVESTMENTS. Make any Investments, except:

      (a) Investments held by the Company or such Subsidiary in the form of cash
equivalents or the Company's cash investment policy as approved by the Company's
board of directors;

      (b) advances to officers, directors and employees of the Company and
Subsidiaries in an aggregate amount not to exceed $500,000 at any time
outstanding, for travel, entertainment, relocation and analogous ordinary
business purposes;

      (c) Investments of the Company in any Subsidiary Guarantor and Investments
of any Subsidiary Guarantor in the Company or in another Subsidiary Guarantor;

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<PAGE>

      (d) Investments consisting of extensions of credit in the nature of
accounts receivable or notes receivable arising from the grant of trade credit
in the ordinary course of business, and Investments received in satisfaction or
partial satisfaction thereof from financially troubled account debtors to the
extent reasonably necessary in order to prevent or limit loss;

      (e) other Investments not exceeding $500,000 in the aggregate in any
fiscal year of the Company;

      (f) Investments in Restricted Subsidiaries not exceeding $30,000,000 in
the aggregate at any time, plus the total amount of all such Investments in
Restricted Subsidiaries as of the date of this Agreement, plus any excess amount
of Restricted Payments available to be paid pursuant to Section 7.06(d) and not
otherwise distributed;

      (g) Investments in Joint Ventures not exceeding $20,000,000 in the
aggregate at any time, plus the total amount of all such Investments in Joint
Ventures as of the date of this Agreement, plus any excess amount of Restricted
Payments available to be paid pursuant to Section 7.06(e) and not otherwise
distributed; and

      (h) Investments of the Company in (i) BBRM or its affiliates for the
purpose of acquiring an interest in rail cars owned by BBRM or its affiliates or
(ii) one or more Joint Ventures between the Company or any of its Subsidiaries
and BBRM or its affiliates formed for the purpose of acquiring, managing,
marketing, remarketing, leasing and/or selling rail cars and other surface
transportation equipment, in an aggregate amount for all Investments made
pursuant to this Section 7.02(i) not to exceed $25,000,000 at any time
outstanding; and

      (i) Purchases of Inventory by Gunderson, Inc. on behalf of
Greenbrier-Concarril, LLC.

      7.03 INDEBTEDNESS. Create, incur, assume or suffer to exist any
Indebtedness, except:

      (a) Indebtedness under the Loan Documents;

      (b) Indebtedness outstanding on the date hereof and listed on Schedule
7.03 and any refinancings, refundings, renewals or extensions thereof; provided
that the amount of such Indebtedness is not increased at the time of such
refinancing, refunding, renewal or extension except by an amount equal to a
reasonable premium or other reasonable amount paid, and fees and expenses
reasonably incurred, in connection with such refinancing and by an amount equal
to any existing commitments unutilized thereunder;

      (c) Guarantees of the Company or any Subsidiary Guarantor in respect of
Indebtedness otherwise permitted hereunder of the Company or any other
Subsidiary Guarantor;

      (d) Obligations (contingent or otherwise) of the Borrower or any
Subsidiary existing or arising under any Swap Contract, provided that (i) such
obligations are (or were) entered into by such Person in the ordinary course of
business for the purpose of directly mitigating risks associated with
liabilities, commitments, investments, assets, or property held or reasonably
anticipated by such Person, or changes in the value of securities issued by such
Person, and not for purposes of speculation or taking a "market view;" and (ii)
such Swap Contract does not

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<PAGE>

contain any provision exonerating the non-defaulting party from its obligation
to make payments on outstanding transactions to the defaulting party;

      (e) Indebtedness of the Company, TWI or the Subsidiary Guarantors or other
Domestic Subsidiaries in respect of (i) Term Debt, or (ii) Guarantees of
Indebtedness of any Person other than the Company, TWI, or the Subsidiary
Guarantors, provided; however, that the aggregate amount of all such
Indebtedness at any one time outstanding shall not exceed $100,000,000;

      (f) Capital leases (including sale-leaseback transactions) or purchase
money obligations for fixed or capital assets, within the limitations set forth
in Section 7.01(i), and in an aggregate amount not to exceed $25,000,000;

      (g) Unsecured Indebtedness and/or subordinated indebtedness, on terms
reasonably acceptable to the Agent, in an aggregate principal amount not to
exceed $100,000,000 at any time outstanding; and

      (h) Indebtedness of Restricted Subsidiaries and Joint Ventures, so long as
such Indebtedness is (i) on a "non-recourse" basis to the Borrowers and all
Subsidiary Guarantors; or (ii) is guaranteed pursuant to Section 7.03(e).

      7.04 FUNDAMENTAL CHANGES. Merge, dissolve, liquidate, consolidate with or
into another Person, or Dispose of (whether in one transaction or in a series of
transactions) all or substantially all of its assets (whether now owned or
hereafter acquired) to or in favor of any Person, except that, so long as no
Default exists or would result therefrom:

      (a) any Subsidiary may merge with (i) the Company, provided that the
Company shall be the continuing or surviving Person, or (ii) any one or more
other Subsidiaries, provided that when any Subsidiary Guarantor is merging with
another Subsidiary, the Subsidiary Guarantor shall be the continuing or
surviving Person; and

      (b) the Company may merge or consolidate with another corporation or
entity which merger or consolidation merely effects the form or domicile of the
Company without changing the respective holdings of capital stock in the Company
(or in the surviving entity) by stockholders and pursuant to which all
obligations of the Company in respect of this Agreement are and remain
obligations of the surviving entity; and

      (c) any Subsidiary may Dispose of all or substantially all of its assets
(upon voluntary liquidation or otherwise) to the Company or to another
Subsidiary; provided that if the transferor in such a transaction is a
Subsidiary Guarantor, then the transferee must either be the Company or a
Subsidiary Guarantor.

      7.05 DISPOSITIONS. Make any Disposition or enter into any agreement to
make any Disposition, except:

      (a) Dispositions of obsolete or worn out property, whether now owned or
hereafter acquired, in the ordinary course of business;

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<PAGE>

      (b) Dispositions of inventory in the ordinary course of business and of
equipment on or held for lease, including sales or exchanges of such assets, and
in connection with the Golden West Agreements, in each case in the ordinary
course of business;

      (c) Dispositions of equipment or real property to the extent that (i) such
property is exchanged for credit against the purchase price of similar
replacement property or (ii) the proceeds of such Disposition are reasonably
promptly applied to the purchase price of such replacement property;

      (d) Dispositions of property by any Subsidiary to the Company or to a
wholly-owned Subsidiary; provided that if the transferor of such property is a
Subsidiary Guarantor, the transferee thereof must either be the Company or a
Subsidiary Guarantor;

      (e) Dispositions permitted by Section 7.04;

      (f) Dispositions of lease assets in lease securitization or syndication
transactions, provided that the Borrower remains in compliance with their
limitations under both the U.S. Borrowing Base and the Canadian Borrowing Base
and all other terms and conditions of this Agreement;

      (g) Dispositions pursuant to any sale-leaseback transactions under Section
7.03(f).

provided, however, that any Disposition pursuant to clauses (a) through (f)
shall be for fair market value.

      7.06 RESTRICTED PAYMENTS. Declare or make, directly or indirectly, any
Restricted Payment, or incur any obligation (contingent or otherwise) to do so,
except that, so long as no Default shall have occurred and be continuing at the
time of any action described below or would result therefrom:

      (a) each Subsidiary may make Restricted Payments to the Company, the
Subsidiary Guarantors and any other Person that owns an Equity Interest in such
Subsidiary, ratably according to their respective holdings of the type of Equity
Interest in respect of which such Restricted Payment is being made;

      (b) the Company and each Subsidiary may declare and make dividend payments
or other distributions payable solely in the common stock or other common Equity
Interests of such Person;

      (c) the Company and each Subsidiary may purchase, redeem or otherwise
acquire Equity Interests issued by it with the proceeds received from the
substantially concurrent issue of new shares of its common stock or other common
Equity Interests;

      (d) the Company or a Subsidiary may purchase equity interests of 3048389
Nova Scotia Limited pursuant to contractual obligations existing on the date of
this Agreement in an amount not to exceed $10,000,000; and

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<PAGE>
         (e) excluding any payments made by the Company to the Estate of Alan
James prior to August 31, 2005, the Company may declare or pay Restricted
Payments in an amount not to exceed 50% of the cumulative net income of the
Company and its Subsidiaries since February 28, 2005.

         7.07 CHANGE IN NATURE OF BUSINESS. Engage in any material line of
business substantially different from those lines of business conducted by the
Company and its Subsidiaries on the date hereof or any business substantially
related or incidental thereto.

         7.08 TRANSACTIONS WITH AFFILIATES. Other than Investments in or
Restricted Payments to Subsidiaries, enter into any transaction of any kind with
any Affiliate of the Company, whether or not in the ordinary course of business,
other than on fair and reasonable terms substantially as favorable to the
Company or such Subsidiary as would be obtainable by the Company or such
Subsidiary at the time in a comparable arm's length transaction with a Person
other than an Affiliate.

         7.09 BURDENSOME AGREEMENTS. Other than those in existence as of the
date of this Agreement and set forth in Schedule 7.09, enter into any
Contractual Obligation (other than this Agreement or any other Loan Document)
that (a) limits the ability (i) of any Subsidiary Guarantor to make Restricted
Payments to the Company or any Subsidiary Guarantor or to otherwise transfer
property to the Company or any Subsidiary Guarantor, (ii) of any Subsidiary
Guarantor to Guarantee the Indebtedness of the Company or (iii) of the Company
or any Subsidiary Guarantor to create, incur, assume or suffer to exist Liens on
property of such Person; provided, however, that this clause (iii) shall not
prohibit any negative pledge incurred or provided in favor of any holder of
Indebtedness permitted under Section 7.03(e) solely to the extent any such
negative pledge relates to the property financed by or the subject of such
Indebtedness; or (b) requires the grant of a Lien to secure an obligation of
such Person if a Lien is granted to secure another obligation of such Person.
The Company and the Subsidiary Guarantors shall not renew or extend the
agreements set forth in Schedule 7.09 unless any limitation on Restricted
Payments shall have been terminated as part of such renewal or extension.

         7.10 USE OF PROCEEDS. Use the proceeds of any Credit Extension, whether
directly or indirectly, and whether immediately, incidentally or ultimately, to
purchase or carry margin stock (within the meaning of Regulation U of the FRB)
or to extend credit to others for the purpose of purchasing or carrying margin
stock or to refund indebtedness originally incurred for such purpose.

         7.11 FINANCIAL COVENANTS. Beginning with the fiscal quarter ended May
31, 2005:

         (a) CONSOLIDATED TANGIBLE NET WORTH. Permit Consolidated Tangible Net
Worth at any time to be less than the sum of (i) an amount equal to 80% of the
Company's Consolidated Tangible Net Worth as of May 31, 2005, (ii) an amount
equal to 50% of the Consolidated Net Income earned in each full fiscal quarter
ending after May 31, 2005 (with no deduction for a net loss in any such fiscal
quarter), and (iii) an amount equal to 50% of the aggregate increases in
Stockholders' Equity of the Company and its Subsidiaries after the date hereof
by reason of the issuance and sale of Equity Interests of the Company or any
Subsidiary (other than issuances to

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the Company or a wholly-owned Subsidiary), including upon any conversion of debt
securities of the Company into such Equity Interests.

         (b) CONSOLIDATED FIXED CHARGE COVERAGE RATIO. Permit the Consolidated
Fixed Charge Coverage Ratio on a rolling four quarter basis of the Company to be
less than 1.75 to 1.00.

         (c) CONSOLIDATED CAPITALIZATION RATIO. Permit the Consolidated
Capitalization Ratio as of the end of any fiscal quarter of the Company to be
greater than .675 to 1.00.

         7.12 CAPITAL EXPENDITURES. Make or become legally obligated to make any
expenditure in respect of the purchase or other acquisition of any fixed or
capital asset (excluding normal replacements and maintenance which are properly
charged to current operations), except for capital expenditures in the ordinary
course of business not exceeding $25,000,000 in the aggregate in any fiscal year
for the Company and its Subsidiaries, and any such expenditures made for leasing
assets.

                                 ARTICLE VIII.
                         EVENTS OF DEFAULT AND REMEDIES

         8.01 EVENTS OF DEFAULT. Any of the following shall constitute an Event
of Default:

         (a) Non-Payment. Any Borrower or any other Loan Party fails to pay (i)
when and as required to be paid herein, and in the currency required hereunder,
any amount of principal of any Loan or any L/C Obligation, or (ii) within three
days after the same becomes due, any interest on any Loan or on any L/C
Obligation, or any fee due hereunder, or (iii) within five days after the same
becomes due, any other amount payable hereunder or under any other Loan
Document; or

         (b) Specific Covenants. The Company fails to perform or observe any
term, covenant or agreement contained in any of Section 6.01, 6.02, 6.03, 6.05,
6.10, 6.11 or 6.13 or Article VII, other than pursuant to Sections 7.02 and
7.03, or any Subsidiary Guarantor fails to perform or observe any term, covenant
or agreement contained in its Subsidiary Guaranty; or

         (c) Other Defaults. Any Loan Party fails to perform or observe any
other covenant or agreement (not specified in subsection (a) or (b) above)
contained in any Loan Document on its part to be performed or observed and such
failure continues for 30 days; or

         (d) Representations and Warranties. Any representation, warranty,
certification or statement of fact made or deemed made by or on behalf of the
Company or any other Loan Party herein, in any other Loan Document, or in any
document delivered in connection herewith or therewith shall be incorrect or
misleading in any material respect when made or deemed made; or

         (e) Cross-Default. (i) The Company or any Subsidiary (A) fails to make
any payment when due (whether by scheduled maturity, required prepayment,
acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee
(other than Indebtedness hereunder and

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Indebtedness under Swap Contracts) having an aggregate principal amount
(including undrawn committed or available amounts and including amounts owing to
all creditors under any combined or syndicated credit arrangement) of more than
the Threshold Amount, or (B) fails to observe or perform any other agreement or
condition relating to any such Indebtedness or Guarantee or contained in any
instrument or agreement evidencing, securing or relating thereto, or any other
event occurs, the effect of which default or other event is to cause, or to
permit the holder or holders of such Indebtedness or the beneficiary or
beneficiaries of such Guarantee (or a trustee or agent on behalf of such holder
or holders or beneficiary or beneficiaries) to cause, with the giving of notice
if required, such Indebtedness to be demanded or to become due or to be
repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an
offer to repurchase, prepay, defease or redeem such Indebtedness to be made,
prior to its stated maturity, or such Guarantee to become payable or cash
collateral in respect thereof to be demanded; or (ii) there occurs under any
Swap Contract an Early Termination Date (as defined in such Swap Contract)
resulting from (A) any event of default under such Swap Contract as to which the
Company or any Subsidiary is the Defaulting Party (as defined in such Swap
Contract) or (B) any Termination Event (as so defined) under such Swap Contract
as to which the Company or any Subsidiary is an Affected Party (as so defined)
and, in either event, the Swap Termination Value owed by the Company or such
Subsidiary as a result thereof is greater than the Threshold Amount; or

         (f) Insolvency Proceedings, Etc. Any Loan Party or any of its
Subsidiaries institutes or consents to the institution of any proceeding under
any Debtor Relief Law, or makes an assignment for the benefit of creditors; or
applies for or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or
any material part of its property; or any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer is appointed without
the application or consent of such Person and the appointment continues
undischarged or unstayed for 60 calendar days; or any proceeding under any
Debtor Relief Law relating to any such Person or to all or any material part of
its property is instituted without the consent of such Person and continues
undismissed or unstayed for 60 calendar days, or an order for relief is entered
in any such proceeding; or

         (g) Inability to Pay Debts; Attachment. (i) The Company or any
Subsidiary becomes unable or admits in writing its inability or fails generally
to pay its debts as they become due, or (ii) any writ or warrant of attachment
or execution or similar process is issued or levied against all or any material
part of the property of any such Person and is not released, vacated or fully
bonded within 30 days after its issue or levy; or

         (h) Judgments. There is entered against the Company or any Subsidiary
(i) a final judgment or order for the payment of money in an aggregate amount
exceeding the Threshold Amount (to the extent not covered by independent
third-party insurance as to which the insurer does not dispute coverage), or
(ii) any one or more non-monetary final judgments that have, or could reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect
and, in either case, (A) enforcement proceedings are commenced by any creditor
upon such judgment or order, or (B) there is a period of 30 consecutive days
during which a stay of enforcement of such judgment, by reason of a pending
appeal or otherwise, is not in effect; or

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         (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or
Multiemployer Plan which has resulted or could reasonably be expected to result
in liability of the Company under Title IV of ERISA to the Pension Plan,
Multiemployer Plan or the PBGC in an aggregate amount in excess of the Threshold
Amount, or (ii) the Company or any ERISA Affiliate fails to pay when due, after
the expiration of any applicable grace period, any installment payment with
respect to its withdrawal liability under Section 4201 of ERISA under a
Multiemployer Plan in an aggregate amount in excess of the Threshold Amount; or

         (j) Invalidity of Loan Documents. Any material provision of any Loan
Document, at any time after its execution and delivery and for any reason other
than as expressly permitted hereunder or satisfaction in full of all the
Obligations, ceases to be in full force and effect; or any Loan Party or any
other Person contests in any manner the validity or enforceability of any
provision of any Loan Document; or any Loan Party denies that it has any or
further liability or obligation under any Loan Document, or purports to revoke,
terminate or rescind any provision of any Loan Document; or

         (k) Change of Control. There occurs any Change of Control.

         8.02 REMEDIES UPON EVENT OF DEFAULT. If any Event of Default occurs and
is continuing, the Administrative Agent shall, at the request of, or may, with
the consent of, the Required Lenders, take any or all of the following actions:

         (a) declare the commitment of each Lender to make Loans and any
obligation of the L/C Issuer to make L/C Credit Extensions to be terminated,
whereupon such commitments and obligation shall be terminated;

         (b) declare the unpaid principal amount of all outstanding Loans, all
interest accrued and unpaid thereon, and all other amounts owing or payable
hereunder or under any other Loan Document to be immediately due and payable,
without presentment, demand, protest or other notice of any kind, all of which
are hereby expressly waived by the Borrowers;

         (c) require that the Company Cash Collateralize the L/C Obligations (in
an amount equal to the then Outstanding Amount thereof); and

         (d) exercise on behalf of itself and the Lenders all rights and
remedies available to it and the Lenders under the Loan Documents and applicable
law;

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to any Borrower under the Bankruptcy Code of the
United States, the obligation of each Lender to make Loans and any obligation of
the L/C Issuer to make L/C Credit Extensions shall automatically terminate, the
unpaid principal amount of all outstanding Loans and all interest and other
amounts as aforesaid shall automatically become due and payable, and the
obligation of the Company to Cash Collateralize the L/C Obligations as aforesaid
shall automatically become effective, in each case without further act of the
Administrative Agent or any Lender.

         8.03 APPLICATION OF FUNDS. After the exercise of remedies provided for
in Section 8.02 (or after the Loans have automatically become immediately due
and payable and the L/C

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Obligations have automatically been required to be Cash Collateralized as set
forth in the proviso to Section 8.02), any amounts received on account of the
Obligations shall be applied by the Administrative Agent in the following order:

         First, to payment of that portion of the Obligations constituting fees,
indemnities, expenses and other amounts (including fees, charges and
disbursements of counsel to the Administrative Agent and amounts payable under
Article III) payable to the Administrative Agent in its capacity as such, and
including any amounts owed pursuant to any Swap Contracts;

         Second, to payment of that portion of the Obligations constituting
fees, indemnities and other amounts (other than principal, interest and Letter
of Credit Fees) payable to the Lenders and the L/C Issuer (including fees,
charges and disbursements of counsel to the respective Lenders and the L/C
Issuer (including fees and time charges for attorneys who may be employees of
any Lender or the L/C Issuer) and amounts payable under Article III), ratably
among them in proportion to the respective amounts described in this clause
Second payable to them;

         Third, to payment of that portion of the Obligations constituting
accrued and unpaid Letter of Credit Fees and interest on the Loans, L/C
Borrowings and other Obligations, ratably among the Lenders and the L/C Issuer
in proportion to the respective amounts described in this clause Third payable
to them;

         Fourth, to payment of that portion of the Obligations constituting
unpaid principal of the Loans and L/C Borrowings, ratably among the Lenders and
the L/C Issuer in proportion to the respective amounts described in this clause
Fourth held by them;

         Fifth, to the Administrative Agent for the account of the L/C Issuer,
to Cash Collateralize that portion of L/C Obligations comprised of the aggregate
undrawn amount of Letters of Credit; and

         Last, the balance, if any, after all of the Obligations have been
indefeasibly paid in full, to the Company or as otherwise required by Law.

Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate
undrawn amount of Letters of Credit pursuant to clause Fifth above shall be
applied to satisfy drawings under such Letters of Credit as they occur. If any
amount remains on deposit as Cash Collateral after all Letters of Credit have
either been fully drawn or expired, such remaining amount shall be applied to
the other Obligations, if any, in the order set forth above.

                        ARTICLE IX. ADMINISTRATIVE AGENT

         9.01 APPOINTMENT AND AUTHORITY.

         Each of the Lenders and the L/C Issuer hereby irrevocably appoints Bank
of America to act on its behalf as the Administrative Agent hereunder and under
the other Loan Documents and authorizes the Administrative Agent to take such
actions on its behalf and to exercise such powers as are delegated to the
Administrative Agent by the terms hereof or thereof, together with

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such actions and powers as are reasonably incidental thereto. The provisions of
this Article are solely for the benefit of the Administrative Agent, the Lenders
and the L/C Issuer, and no Borrower shall have rights as a third party
beneficiary of any of such provisions.

         9.02 RIGHTS AS A LENDER. The Person serving as the Administrative Agent
hereunder shall have the same rights and powers in its capacity as a Lender as
any other Lender and may exercise the same as though it were not the
Administrative Agent and the term "Lender" or "Lenders" shall, unless otherwise
expressly indicated or unless the context otherwise requires, include the Person
serving as the Administrative Agent hereunder in its individual capacity. Such
Person and its Affiliates may accept deposits from, lend money to, act as the
financial advisor or in any other advisory capacity for and generally engage in
any kind of business with the Borrowers or any Subsidiary or other Affiliate
thereof as if such Person were not the Administrative Agent hereunder and
without any duty to account therefor to the Lenders.

         9.03 EXCULPATORY PROVISIONS. The Administrative Agent shall not have
any duties or obligations except those expressly set forth herein and in the
other Loan Documents. Without limiting the generality of the foregoing, the
Administrative Agent:

                  (a) shall not be subject to any fiduciary or other implied
         duties, regardless of whether a Default has occurred and is continuing;

                  (b) shall not have any duty to take any discretionary action
         or exercise any discretionary powers, except discretionary rights and
         powers expressly contemplated hereby or by the other Loan Documents
         that the Administrative Agent is required to exercise as directed in
         writing by the Required Lenders (or such other number or percentage of
         the Lenders as shall be expressly provided for herein or in the other
         Loan Documents), provided that the Administrative Agent shall not be
         required to take any action that, in its opinion or the opinion of its
         counsel, may expose the Administrative Agent to liability or that is
         contrary to any Loan Document or applicable law; and

                  (c) shall not, except as expressly set forth herein and in the
         other Loan Documents, have any duty to disclose, and shall not be
         liable for the failure to disclose, any information relating to any of
         the Borrowers or any of their respective Affiliates that is
         communicated to or obtained by the Person serving as the Administrative
         Agent or any of its Affiliates in any capacity.

         The Administrative Agent shall not be liable for any action taken or
not taken by it (i) with the consent or at the request of the Required Lenders
(or such other number or percentage of the Lenders as shall be necessary, or as
the Administrative Agent shall believe in good faith shall be necessary, under
the circumstances as provided in Sections 10.01 and 8.02) or (ii) in the absence
of its own gross negligence or willful misconduct. The Administrative Agent
shall be deemed not to have knowledge of any Default unless and until notice
describing such Default is given to the Administrative Agent by the Company, a
Lender or the L/C Issuer.

         The Administrative Agent shall not be responsible for or have any duty
to ascertain or inquire into (i) any statement, warranty or representation made
in or in connection with this Agreement or any other Loan Document, (ii) the
contents of any certificate, report or other

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document delivered hereunder or thereunder or in connection herewith or
therewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability, effectiveness or
genuineness of this Agreement, any other Loan Document or any other agreement,
instrument or document or (v) the satisfaction of any condition set forth in
Article IV or elsewhere herein, other than to confirm receipt of items expressly
required to be delivered to the Administrative Agent.

         9.04 RELIANCE BY ADMINISTRATIVE AGENT.

         The Administrative Agent shall be entitled to rely upon, and shall not
incur any liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing (including any electronic
message, Internet or intranet website posting or other distribution) believed by
it to be genuine and to have been signed, sent or otherwise authenticated by the
proper Person. The Administrative Agent also may rely upon any statement made to
it orally or by telephone and believed by it to have been made by the proper
Person, and shall not incur any liability for relying thereon. In determining
compliance with any condition hereunder to the making of a Loan, or the issuance
of a Letter of Credit, that by its terms must be fulfilled to the satisfaction
of a Lender or the L/C Issuer, the Administrative Agent may presume that such
condition is satisfactory to such Lender or the L/C Issuer unless the
Administrative Agent shall have received notice to the contrary from such Lender
or the L/C Issuer prior to the making of such Loan or the issuance of such
Letter of Credit. The Administrative Agent may consult with legal counsel (who
may be counsel for the Company), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts.

         9.05 DELEGATION OF DUTIES. The Administrative Agent may perform any and
all of its duties and exercise its rights and powers hereunder or under any
other Loan Document by or through any one or more sub-agents appointed by the
Administrative Agent. The Administrative Agent and any such sub-agent may
perform any and all of its duties and exercise its rights and powers by or
through their respective Related Parties. The exculpatory provisions of this
Article shall apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent, and shall apply to their respective
activities in connection with the syndication of the credit facilities provided
for herein as well as activities as Administrative Agent.

         9.06 RESIGNATION OF ADMINISTRATIVE AGENT. The Administrative Agent may
at any time give notice of its resignation to the Lenders, the L/C Issuer and
the Company. Upon receipt of any such notice of resignation, the Required
Lenders shall have the right, in consultation with the Company, to appoint a
successor, which shall be a bank with an office in the United States, or an
Affiliate of any such bank with an office in the United States. If no such
successor shall have been so appointed by the Required Lenders and shall have
accepted such appointment within 30 days after the retiring Administrative Agent
gives notice of its resignation, then the retiring Administrative Agent may on
behalf of the Lenders and the L/C Issuer, appoint a successor Administrative
Agent meeting the qualifications set forth above; provided that if the
Administrative Agent shall notify the Company and the Lenders that no qualifying
Person has accepted such appointment, then such resignation shall nonetheless
become effective in accordance with such notice and (1) the retiring
Administrative Agent shall be discharged from

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its duties and obligations hereunder and under the other Loan Documents (except
that in the case of any collateral security held by the Administrative Agent on
behalf of the Lenders or the L/C Issuer under any of the Loan Documents, the
retiring Administrative Agent shall continue to hold such collateral security
until such time as a successor Administrative Agent is appointed) and (2) all
payments, communications and determinations provided to be made by, to or
through the Administrative Agent shall instead be made by or to each Lender and
the L/C Issuer directly, until such time as the Required Lenders appoint a
successor Administrative Agent as provided for above in this Section. Upon the
acceptance of a successor's appointment as Administrative Agent hereunder, such
successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring (or retired) Administrative Agent, and the
retiring Administrative Agent shall be discharged from all of its duties and
obligations hereunder or under the other Loan Documents (if not already
discharged therefrom as provided above in this Section). The fees payable by the
Company to a successor Administrative Agent shall be the same as those payable
to its predecessor unless otherwise agreed between the Company and such
successor. After the retiring Administrative Agent's resignation hereunder and
under the other Loan Documents, the provisions of this Article and Section 10.04
shall continue in effect for the benefit of such retiring Administrative Agent,
its sub-agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while the retiring Administrative
Agent was acting as Administrative Agent.

         Any resignation by Bank of America as Administrative Agent pursuant to
this Section shall also constitute its resignation as L/C Issuer and Swing Line
Lender. Upon the acceptance of a successor's appointment as Administrative Agent
hereunder, (a) such successor shall succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring L/C Issuer and Swing Line
Lender, (b) the retiring L/C Issuer and Swing Line Lender shall be discharged
from all of their respective duties and obligations hereunder or under the other
Loan Documents, and (c) the successor L/C Issuer shall issue letters of credit
in substitution for the Letters of Credit, if any, outstanding at the time of
such succession or make other arrangements reasonably satisfactory to the
retiring L/C Issuer to effectively assume the obligations of the retiring L/C
Issuer with respect to such Letters of Credit.

         9.07 NON-RELIANCE ON ADMINISTRATIVE AGENT AND OTHER LENDERS. Each
Lender and the L/C Issuer acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Lender or any of their
Related Parties and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender and the L/C Issuer also acknowledges that it will,
independently and without reliance upon the Administrative Agent or any other
Lender or any of their Related Parties and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any other Loan Document or any related agreement or any document furnished
hereunder or thereunder.

         9.08 NO OTHER DUTIES, ETC. Anything herein to the contrary
notwithstanding, none of the Bookrunners or Arrangers listed on the cover page
hereof shall have any powers, duties or responsibilities under this Agreement or
any of the other Loan Documents, except in its capacity, as applicable, as the
Administrative Agent, a Lender or the L/C Issuer hereunder.

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         9.09 ADMINISTRATIVE AGENT MAY FILE PROOFS OF CLAIM. In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to any Loan Party, the Administrative Agent (irrespective of
whether the principal of any Loan or L/C Obligation shall then be due and
payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on any Borrower)
shall be entitled and empowered, by intervention in such proceeding or otherwise

                  (a) to file and prove a claim for the whole amount of the
         principal and interest owing and unpaid in respect of the Loans, L/C
         Obligations and all other Obligations that are owing and unpaid and to
         file such other documents as may be necessary or advisable in order to
         have the claims of the Lenders, the L/C Issuer and the Administrative
         Agent (including any claim for the reasonable compensation, expenses,
         disbursements and advances of the Lenders, the L/C Issuer and the
         Administrative Agent and their respective agents and counsel and all
         other amounts due the Lenders, the L/C Issuer and the Administrative
         Agent under Sections 2.03(i) and (j), 2.09 and 10.04) allowed in such
         judicial proceeding; and

                  (b) to collect and receive any monies or other property
         payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Lender and the L/C Issuer to make such payments to the Administrative Agent
and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders and the L/C Issuer, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amounts due the Administrative Agent under Sections 2.09
and 10.04.

         Nothing contained herein shall be deemed to authorize the
Administrative Agent to authorize or consent to or accept or adopt on behalf of
any Lender or the L/C Issuer any plan of reorganization, arrangement, adjustment
or composition affecting the Obligations or the rights of any Lender or to
authorize the Administrative Agent to vote in respect of the claim of any Lender
in any such proceeding.

         9.10 COLLATERAL AND GUARANTY MATTERS. The Lenders and the L/C Issuer
irrevocably authorize the Administrative Agent, at its option and in its
discretion,

                  (a) to release any Lien on any property granted to or held by
         the Administrative Agent under any Loan Document (i) upon termination
         of the Aggregate Commitments and payment in full of all Obligations
         (other than contingent indemnification obligations) and the expiration
         or termination of all Letters of Credit, (ii) that is sold or to be
         sold as part of or in connection with any sale permitted hereunder or
         under any other Loan Document, or (iii) subject to Section 10.01, if
         approved, authorized or ratified in writing by the Required Lenders;

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                  (b) to subordinate any Lien on any property granted to or held
         by the Administrative Agent under any Loan Document to the holder of
         any Lien on such property that is permitted by Section 7.01(i); and

                  (c) to release any Subsidiary Guarantor from its obligations
         under the Subsidiary Guaranty if such Person ceases to be a Subsidiary
         as a result of a transaction permitted hereunder.

         Upon request by the Administrative Agent at any time, the Required
Lenders will confirm in writing the Administrative Agent's authority to release
or subordinate its interest in particular types or items of property, or to
release any Subsidiary Guarantor from its obligations under the Guaranty
pursuant to this Section 9.10.

                                   ARTICLE X.
                                  MISCELLANEOUS

         10.01 AMENDMENTS, ETC. No amendment or waiver of any provision of this
Agreement or any other Loan Document, and no consent to any departure by the
Company or any other Loan Party therefrom, shall be effective unless in writing
signed by the Required Lenders and the Company or the applicable Loan Party, as
the case may be, and acknowledged by the Administrative Agent, and each such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that no such amendment,
waiver or consent shall:

         (a) waive any condition set forth in Section 4.01(a) without the
written consent of each Lender;

         (b) extend or increase the Commitment of any Lender (or reinstate any
Commitment terminated pursuant to Section 8.02) without the written consent of
such Lender;

         (c) postpone any date fixed by this Agreement or any other Loan
Document for any payment of principal, interest, fees or other amounts due to
the Lenders (or any of them) hereunder or under any other Loan Document without
the written consent of each Lender directly affected thereby;

         (d) reduce the principal of, or the rate of interest specified herein
on, any Loan or L/C Borrowing, or (subject to clause (iv) of the second proviso
to this Section 10.01) any fees or other amounts payable hereunder or under any
other Loan Document without the written consent of each Lender directly affected
thereby; provided, however, that only the consent of the Required Lenders shall
be necessary (i) to amend the definition of "Default Rate" or to waive any
obligation of any Borrower to pay interest or Letter of Credit Fees at the
Default Rate or (ii) to amend any financial covenant hereunder (or any defined
term used therein) even if the effect of such amendment would be to reduce the
rate of interest on any Loan or L/C Borrowing or to reduce any fee payable
hereunder;

         (e) change Section 2.13 or Section 8.03 in a manner that would alter
the pro rata sharing of payments required thereby without the written consent of
each Lender;

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         (f) amend Section 1.06 or the definition of "Alternative Currency"
without the written consent of each Lender; or

         (g) change any provision of this Section or the definition of "Required
Lenders" or any other provision hereof specifying the number or percentage of
Lenders required to amend, waive or otherwise modify any rights hereunder or
make any determination or grant any consent hereunder without the written
consent of each Lender; or

         (h) release any of the subsidiaries from the Subsidiary Guaranty
without the written consent of each Lender; or

         (i) release all or substantially all of the Collateral in any
transaction or series of related transactions without the written consent of
each Lender;

and, provided further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the L/C Issuer in addition to the Lenders required above,
affect the rights or duties of the L/C Issuer under this Agreement or any Issuer
Document relating to any Letter of Credit issued or to be issued by it; (ii) no
amendment, waiver or consent shall, unless in writing and signed by the Swing
Line Lender in addition to the Lenders required above, affect the rights or
duties of the Swing Line Lender under this Agreement; (iii) no amendment, waiver
or consent shall, unless in writing and signed by the Administrative Agent in
addition to the Lenders required above, affect the rights or duties of the
Administrative Agent under this Agreement or any other Loan Document; and (iv)
the Fee Letter may be amended, or rights or privileges thereunder waived, in a
writing executed only by the parties thereto. Notwithstanding anything to the
contrary herein, no Defaulting Lender shall have any right to approve or
disapprove any amendment, waiver or consent hereunder, except that the
Commitment of such Lender may not be increased or extended without the consent
of such Lender.

         10.02 NOTICES; EFFECTIVENESS; ELECTRONIC COMMUNICATION.

         (a) Notices Generally. Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as
provided in subsection (b) below), all notices and other communications provided
for herein shall be in writing and shall be delivered by hand or overnight
courier service, mailed by certified or registered mail or sent by telecopier as
follows, and all notices and other communications expressly permitted hereunder
to be given by telephone shall be made to the applicable telephone number, as
follows:

                  (i) if to the Borrowers, the Administrative Agent, the L/C
         Issuer or the Swing Line Lender, to the address, telecopier number,
         electronic mail address or telephone number specified for such Person
         on Schedule 10.02; and

                  (ii) if to any other Lender, to the address, telecopier
         number, electronic mail address or telephone number specified in its
         Administrative Questionnaire.

Notices sent by hand or overnight courier service, or mailed by certified or
registered mail, shall be deemed to have been given when received; notices sent
by telecopier shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have
been given at the opening of business on the next business day for the

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recipient). Notices delivered through electronic communications to the extent
provided in subsection (b) below, shall be effective as provided in such
subsection (b).

         (b) Electronic Communications. Notices and other communications to the
Lenders and the L/C Issuer hereunder may be delivered or furnished by electronic
communication (including e-mail and Internet or intranet websites) pursuant to
procedures approved by the Administrative Agent, provided that the foregoing
shall not apply to notices to any Lender or the L/C Issuer pursuant to Article
II if such Lender or the L/C Issuer, as applicable, has notified the
Administrative Agent that it is incapable of receiving notices under such
Article by electronic communication. The Administrative Agent or the Company
may, in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it,
provided that approval of such procedures may be limited to particular notices
or communications.

         Unless the Administrative Agent otherwise prescribes, (i) notices and
other communications sent to an e-mail address shall be deemed received upon the
sender's receipt of an acknowledgement from the intended recipient (such as by
the "return receipt requested" function, as available, return e-mail or other
written acknowledgement), provided that if such notice or other communication is
not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the next business day for the recipient, and (ii) notices or communications
posted to an Internet or intranet website shall be deemed received upon the
deemed receipt by the intended recipient at its e-mail address as described in
the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

         (c) The Platform. THE PLATFORM IS PROVIDED "AS IS" AND "AS AVAILABLE."
THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS
OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY
DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. NO
WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD
PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT
PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no event
shall the Administrative Agent or any of its Related Parties (collectively, the
"Agent Parties") have any liability to any Borrower, any Lender, the L/C Issuer
or any other Person for losses, claims, damages, liabilities or expenses of any
kind (whether in tort, contract or otherwise) arising out of any Borrower's or
the Administrative Agent's transmission of Borrower Materials through the
Internet, except to the extent that such losses, claims, damages, liabilities or
expenses are determined by a court of competent jurisdiction by a final and
nonappealable judgment to have resulted from the gross negligence or willful
misconduct of such Agent Party; provided, however, that in no event shall any
Agent Party have any liability to any Borrower, any Lender, the L/C Issuer or
any other Person for indirect, special, incidental, consequential or punitive
damages (as opposed to direct or actual damages).

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         (d) Change of Address, Etc. Each of the Borrowers, the Administrative
Agent, the L/C Issuer and the Swing Line Lender may change its address,
telecopier or telephone number for notices and other communications hereunder by
notice to the other parties hereto. Each other Lender may change its address,
telecopier or telephone number for notices and other communications hereunder by
notice to the Company, the Administrative Agent, the L/C Issuer and the Swing
Line Lender. In addition, each Lender agrees to notify the Administrative Agent
from time to time to ensure that the Administrative Agent has on record (i) an
effective address, contact name, telephone number, telecopier number and
electronic mail address to which notices and other communications may be sent
and (ii) accurate wire instructions for such Lender.

         (e) Reliance by Administrative Agent, L/C Issuer and Lenders. The
Administrative Agent, the L/C Issuer and the Lenders shall be entitled to rely
and act upon any notices (including telephonic Committed Loan Notices and Swing
Line Loan Notices) given by or on behalf of any Borrower even if (i) such
notices were not made in a manner specified herein, were incomplete or were not
preceded or followed by any other form of notice specified herein, or (ii) the
terms thereof, as understood by the recipient, varied from any confirmation
thereof. The Company shall indemnify the Administrative Agent, the L/C Issuer,
each Lender and the Related Parties of each of them from all losses, costs,
expenses and liabilities resulting from the reliance by such Person on each
notice given by or on behalf of any Borrower. All telephonic notices to and
other telephonic communications with the Administrative Agent may be recorded by
the Administrative Agent, and each of the parties hereto hereby consents to such
recording.

         10.03 NO WAIVER; CUMULATIVE REMEDIES. No failure by any Lender or the
Administrative Agent to exercise, and no delay by any such Person in exercising,
any right, remedy, power or privilege hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies,
powers and privileges herein provided are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law.

         10.04 EXPENSES; INDEMNITY; DAMAGE WAIVER.

         (a) Costs and Expenses. The Company shall pay (i) all reasonable
out-of-pocket expenses incurred by the Administrative Agent and its Affiliates
(including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent), in connection with the syndication of the credit
facilities provided for herein, the preparation, negotiation, execution,
delivery and administration of this Agreement and the other Loan Documents or
any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out-of-pocket expenses incurred by the L/C
Issuer in connection with the issuance, amendment, renewal or extension of any
Letter of Credit or any demand for payment thereunder and (iii) all
out-of-pocket expenses incurred by the Administrative Agent, any Lender or the
L/C Issuer (including the fees, charges and disbursements of any counsel for the
Administrative Agent, any Lender or the L/C Issuer), and shall pay all fees and
time charges for attorneys who may be employees of the Administrative Agent, any
Lender or the L/C Issuer, in connection with the enforcement or protection of
its rights (A) in connection with this Agreement and the other Loan Documents,
including its rights under this Section, or (B) in connection with the Loans
made or

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Letters of Credit issued hereunder, including all such out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect of such
Loans or Letters of Credit.

         (b) Indemnification by the Company. The Company shall indemnify the
Administrative Agent (and any sub-agent thereof), each Lender and the L/C
Issuer, and each Related Party of any of the foregoing Persons (each such Person
being called an "Indemnitee") against, and hold each Indemnitee harmless from,
any and all losses, claims, damages, liabilities and related expenses (including
the fees, charges and disbursements of any counsel for any Indemnitee), and
shall indemnify and hold harmless each Indemnitee from all fees and time charges
and disbursements for attorneys who may be employees of any Indemnitee, incurred
by any Indemnitee or asserted against any Indemnitee by any third party or by
any Borrower or any other Loan Party arising out of, in connection with, or as a
result of (i) the execution or delivery of this Agreement, any other Loan
Document or any agreement or instrument contemplated hereby or thereby, the
performance by the parties hereto of their respective obligations hereunder or
thereunder, the consummation of the transactions contemplated hereby or thereby,
or, in the case of the Administrative Agent (and any sub-agent thereof) and its
Related Parties only, the administration of this Agreement and the other Loan
Documents, (ii) any Loan or Letter of Credit or the use or proposed use of the
proceeds therefrom (including any refusal by the L/C Issuer to honor a demand
for payment under a Letter of Credit if the documents presented in connection
with such demand do not strictly comply with the terms of such Letter of
Credit), (iii) any actual or alleged presence or release of Hazardous Materials
on or from any property owned or operated by any Borrower or any of its
Subsidiaries, or any Environmental Liability related in any way to any Borrower
or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a third party or by the
Company or any other Loan Party, and regardless of whether any Indemnitee is a
party thereto; provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or
related expenses (x) are determined by a court of competent jurisdiction by
final and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Indemnitee or (y) result from a claim brought by the
Company or any other Loan Party against an Indemnitee for breach in bad faith of
such Indemnitee's obligations hereunder or under any other Loan Document, if the
Company or such other Loan Party has obtained a final and nonappealable judgment
in its favor on such claim as determined by a court of competent jurisdiction.

         (c) Reimbursement by Lenders. To the extent that the Company for any
reason fails to indefeasibly pay any amount required under subsection (a) or (b)
of this Section to be paid by it to the Administrative Agent (or any sub-agent
thereof), the L/C Issuer or any Related Party of any of the foregoing, each
Lender severally agrees to pay to the Administrative Agent (or any such
sub-agent), the L/C Issuer or such Related Party, as the case may be, such
Lender's Applicable Percentage (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount,
provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted
against the Administrative Agent (or any such sub-agent) or the L/C Issuer in
its capacity as such, or against any Related Party of any of the foregoing
acting for the Administrative Agent (or any such sub-agent) or L/C Issuer in
connection with such capacity.

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The obligations of the Lenders under this subsection (c) are subject to the
provisions of Section 2.12(d).

         (d) Waiver of Consequential Damages, Etc. To the fullest extent
permitted by applicable law, no Borrower or Lender shall assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) arising out of, in connection with, or as a result of, this
Agreement, any other Loan Document or any agreement or instrument contemplated
hereby, the transactions contemplated hereby or thereby, any Loan or Letter of
Credit or the use of the proceeds thereof. No Indemnitee referred to in
subsection (b) above shall be liable for any damages arising from the use by
unintended recipients of any information or other materials distributed by it
through telecommunications, electronic or other information transmission systems
in connection with this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby.

         (e) Payments. All amounts due under this Section shall be payable not
later than ten Business Days after demand therefor.

         (f) Survival. The agreements in this Section shall survive the
resignation of the Administrative Agent and the L/C Issuer, the replacement of
any Lender, the termination of the Aggregate Commitments and the repayment,
satisfaction or discharge of all the other Obligations.

         10.05 PAYMENTS SET ASIDE. To the extent that any payment by or on
behalf of any Borrower is made to the Administrative Agent, the L/C Issuer or
any Lender, or the Administrative Agent, the L/C Issuer or any Lender exercises
its right of setoff, and such payment or the proceeds of such setoff or any part
thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by the
Administrative Agent, the L/C Issuer or such Lender in its discretion) to be
repaid to a trustee, receiver or any other party, in connection with any
proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of
such recovery, the obligation or part thereof originally intended to be
satisfied shall be revived and continued in full force and effect as if such
payment had not been made or such setoff had not occurred, and (b) each Lender
and the L/C Issuer severally agrees to pay to the Administrative Agent upon
demand its applicable share (without duplication) of any amount so recovered
from or repaid by the Administrative Agent, plus interest thereon from the date
of such demand to the date such payment is made at a rate per annum equal to the
applicable Overnight Rate from time to time in effect, in the applicable
currency of such recovery or payment. The obligations of the Lenders and the L/C
Issuer under clause (b) of the preceding sentence shall survive the payment in
full of the Obligations and the termination of this Agreement.

         10.06 SUCCESSORS AND ASSIGNS.

         (a) Successors and Assigns Generally. The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that no Borrower may
assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of the Administrative Agent and

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<PAGE>
each Lender and no Lender may assign or otherwise transfer any of its rights or
obligations hereunder except (i) to an Eligible Assignee in accordance with the
provisions of subsection (b) of this Section, (ii) by way of participation in
accordance with the provisions of subsection (d) of this Section, or (iii) by
way of pledge or assignment of a security interest subject to the restrictions
of subsection (f) of this Section (and any other attempted assignment or
transfer by any party hereto shall be null and void). Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in subsection (d) of this Section and, to
the extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

         (b) Assignments by Lenders. Any Lender may at any time assign to one or
more Eligible Assignees all or a portion of its rights and obligations under
this Agreement (including all or a portion of its Commitment and the Loans
(including for purposes of this subsection (b), participations in L/C
Obligations and in Swing Line Loans) at the time owing to it); provided that

                  (i) except in the case of an assignment of the entire
         remaining amount of the assigning Lender's Commitment and the Loans at
         the time owing to it or in the case of an assignment to a Lender or an
         Affiliate of a Lender or an Approved Fund with respect to a Lender, the
         aggregate amount of the Commitment (which for this purpose includes
         Loans outstanding thereunder) or, if the Commitment is not then in
         effect, the principal outstanding balance of the Loans of the assigning
         Lender subject to each such assignment, determined as of the date the
         Assignment and Assumption with respect to such assignment is delivered
         to the Administrative Agent or, if "Trade Date" is specified in the
         Assignment and Assumption, as of the Trade Date, shall not be less than
         $5,000,000 unless each of the Administrative Agent and, so long as no
         Event of Default has occurred and is continuing, the Company otherwise
         consents (each such consent not to be unreasonably withheld or
         delayed); provided, however, that concurrent assignments to members of
         an Assignee Group and concurrent assignments from members of an
         Assignee Group to a single Eligible Assignee (or to an Eligible
         Assignee and members of its Assignee Group) will be treated as a single
         assignment for purposes of determining whether such minimum amount has
         been met;

                  (ii) each partial assignment shall be made as an assignment of
         a proportionate part of all the assigning Lender's rights and
         obligations under this Agreement with respect to the Loans or the
         Commitment assigned, except that this clause (ii) shall not apply to
         rights in respect of Swing Line Loans;

                  (iii) any assignment of a Commitment must be approved by the
         Administrative Agent, the L/C Issuer and the Swing Line Lender unless
         the Person that is the proposed assignee is itself a Lender (whether or
         not the proposed assignee would otherwise qualify as an Eligible
         Assignee); and

                  (iv) the parties to each assignment shall execute and deliver
         to the Administrative Agent an Assignment and Assumption, together with
         a processing and

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<PAGE>
         recordation fee in the amount, if any, required as set forth in
         Schedule 10.06, and the Eligible Assignee, if it shall not be a Lender,
         shall deliver to the Administrative Agent an Administrative
         Questionnaire.

Subject to acceptance and recording thereof by the Administrative Agent pursuant
to subsection (c) of this Section, from and after the effective date specified
in each Assignment and Assumption, the Eligible Assignee thereunder shall be a
party to this Agreement and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under
this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender's rights and obligations under
this Agreement, such Lender shall cease to be a party hereto) but shall continue
to be entitled to the benefits of Sections 3.01, 3.04, 3.05, and 10.04 with
respect to facts and circumstances occurring prior to the effective date of such
assignment. Upon request, each Borrower (at its expense) shall execute and
deliver a Note to the assignee Lender. Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
subsection shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with
subsection (d) of this Section.

         (c) Register. The Administrative Agent, acting solely for this purpose
as an agent of the Borrowers, shall maintain at the Administrative Agent's
Office a copy of each Assignment and Assumption delivered to it and a register
for the recordation of the names and addresses of the Lenders, and the
Commitments of, and principal amounts of the Loans and L/C Obligations owing to,
each Lender pursuant to the terms hereof from time to time (the "Register"). The
entries in the Register shall be conclusive, and the Borrowers, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by each of the Borrowers and the L/C
Issuer at any reasonable time and from time to time upon reasonable prior
notice. In addition, at any time that a request for a consent for a material or
substantive change to the Loan Documents is pending, any Lender may request and
receive from the Administrative Agent a copy of the Register.

         (d) Participations. Any Lender may at any time, without the consent of,
or notice to, any Borrower or the Administrative Agent, sell participations to
any Person (other than a natural person or the Company or any of the Company's
Affiliates or Subsidiaries) (each, a "Participant") in all or a portion of such
Lender's rights and/or obligations under this Agreement (including all or a
portion of its Commitment and/or the Loans (including such Lender's
participations in L/C Obligations and/or Swing Line Loans) owing to it);
provided that (i) such Lender's obligations under this Agreement shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations and (iii) the Borrowers, the
Administrative Agent, the Lenders and the L/C Issuer shall continue to deal
solely and directly with such Lender in connection with such Lender's rights and
obligations under this Agreement.

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         Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant, agree
to any amendment, waiver or other modification described in the first proviso to
Section 10.01 that affects such Participant. Subject to subsection (e) of this
Section, each Borrower agrees that each Participant shall be entitled to the
benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to subsection (b) of
this Section. To the extent permitted by law, each Participant also shall be
entitled to the benefits of Section 10.08 as though it were a Lender, provided
such Participant agrees to be subject to Section 2.13 as though it were a
Lender.

         (e) Limitation upon Participant Rights. A Participant shall not be
entitled to receive any greater payment under Section 3.01 or 3.04 than the
applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Company's prior written consent. A Participant
that would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 3.01 unless the Company is notified of the participation
sold to such Participant and such Participant agrees, for the benefit of the
Borrowers, to comply with Section 3.01(e) as though it were a Lender.

         (f) Certain Pledges. Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement
(including under its Note(s), if any) to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided that no such pledge or assignment shall release such Lender from
any of its obligations hereunder or substitute any such pledgee or assignee for
such Lender as a party hereto.

         (g) Electronic Execution of Assignments. The words "execution,"
"signed," "signature," and words of like import in any Assignment and Assumption
shall be deemed to include electronic signatures or the keeping of records in
electronic form, each of which shall be of the same legal effect, validity or
enforceability as a manually executed signature or the use of a paper-based
recordkeeping system, as the case may be, to the extent and as provided for in
any applicable law, including the Federal Electronic Signatures in Global and
National Commerce Act, the New York State Electronic Signatures and Records Act,
or any other similar state laws based on the Uniform Electronic Transactions
Act.

         (h) Resignation as L/C Issuer or Swing Line Lender after Assignment.
Notwithstanding anything to the contrary contained herein, if at any time Bank
of America assigns all of its Commitment and Loans pursuant to subsection (b)
above, Bank of America may, (i) upon 30 days' notice to the Company and the
Lenders, resign as L/C Issuer and/or (ii) upon 30 days' notice to the Company,
resign as Swing Line Lender. In the event of any such resignation as L/C Issuer
or Swing Line Lender, the Company shall be entitled to appoint from among the
Lenders a successor L/C Issuer or Swing Line Lender hereunder; provided,
however, that no failure by the Company to appoint any such successor shall
affect the resignation of Bank of America as L/C Issuer or Swing Line Lender, as
the case may be. If Bank of America resigns as L/C Issuer, it shall retain all
the rights, powers, privileges and duties of the L/C Issuer

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hereunder with respect to all Letters of Credit outstanding as of the effective
date of its resignation as L/C Issuer and all L/C Obligations with respect
thereto (including the right to require the Lenders to make Base Rate Committed
Loans or fund risk participations in Unreimbursed Amounts pursuant to Section
2.03(c)). If Bank of America resigns as Swing Line Lender, it shall retain all
the rights of the Swing Line Lender provided for hereunder with respect to Swing
Line Loans made by it and outstanding as of the effective date of such
resignation, including the right to require the Lenders to make Base Rate
Committed Loans or fund risk participations in outstanding Swing Line Loans
pursuant to Section 2.04(c). Upon the appointment of a successor L/C Issuer
and/or Swing Line Lender, (a) such successor shall succeed to and become vested
with all of the rights, powers, privileges and duties of the retiring L/C Issuer
or Swing Line Lender, as the case may be, and (b) the successor L/C Issuer shall
issue letters of credit in substitution for the Letters of Credit, if any,
outstanding at the time of such succession or make other arrangements
satisfactory to Bank of America to effectively assume the obligations of Bank of
America with respect to such Letters of Credit.

         10.07 TREATMENT OF CERTAIN INFORMATION; CONFIDENTIALITY. Each of the
Administrative Agent, the Lenders and the L/C Issuer agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its Affiliates and to its and its Affiliates' respective
partners, directors, officers, employees, agents, advisors and representatives
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential), (b) to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including any self-regulatory
authority, such as the National Association of Insurance Commissioners), (c) to
the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party hereto, (e) in connection with the
exercise of any remedies hereunder or under any other Loan Document or any
action or proceeding relating to this Agreement or any other Loan Document or
the enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to (i)
any assignee of or Participant in, or any prospective assignee of or Participant
in, any of its rights or obligations under this Agreement or (ii) any actual or
prospective counterparty (or its advisors) to any swap or derivative transaction
relating to a Borrower and its obligations, (g) with the consent of the Company
or (h) to the extent such Information (x) becomes publicly available other than
as a result of a breach of this Section or (y) becomes available to the
Administrative Agent, any Lender, the L/C Issuer or any of their respective
Affiliates on a nonconfidential basis from a source other than the Company.

         For purposes of this Section, "Information" means all information
received from the Company or any Subsidiary relating to the Company or any
Subsidiary or any of their respective businesses, other than any such
information that is available to the Administrative Agent, any Lender or the L/C
Issuer on a nonconfidential basis prior to disclosure by the Company or any
Subsidiary. Any Person required to maintain the confidentiality of Information
as provided in this Section shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to
its own confidential information.

         Each of the Administrative Agent, the Lenders and the L/C Issuer
acknowledges that (a) the Information may include material non-public
information concerning the Company or a

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Subsidiary, as the case may be, (b) it has developed compliance procedures
regarding the use of material non-public information and (c) it will handle such
material non-public information in accordance with applicable Law, including
Federal and state securities Laws.

         10.08 RIGHT OF SETOFF. If an Event of Default shall have occurred and
be continuing, each Lender, the L/C Issuer and each of their respective
Affiliates is hereby authorized at any time and from time to time, after
obtaining the prior written consent of the Administrative Agent, to the fullest
extent permitted by applicable law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final, in whatever currency)
at any time held and other obligations (in whatever currency) at any time owing
by such Lender, the L/C Issuer or any such Affiliate to or for the credit or the
account of any Borrower against any and all of the obligations of such Borrower
now or hereafter existing under this Agreement or any other Loan Document to
such Lender or the L/C Issuer, irrespective of whether or not such Lender or the
L/C Issuer shall have made any demand under this Agreement or any other Loan
Document and although such obligations of such Borrower may be contingent or
unmatured or are owed to a branch or office of such Lender or the L/C Issuer
different from the branch or office holding such deposit or obligated on such
indebtedness. The rights of each Lender, the L/C Issuer and their respective
Affiliates under this Section are in addition to other rights and remedies
(including other rights of setoff) that such Lender, the L/C Issuer or their
respective Affiliates may have. Each Lender and the L/C Issuer agrees to notify
the Company and the Administrative Agent promptly after any such setoff and
application, provided that the failure to give such notice shall not affect the
validity of such setoff and application.

         10.09 INTEREST RATE LIMITATION. Notwithstanding anything to the
contrary contained in any Loan Document, the interest paid or agreed to be paid
under the Loan Documents shall not exceed the maximum rate of non-usurious
interest permitted by applicable Law (the "Maximum Rate"). If the Administrative
Agent or any Lender shall receive interest in an amount that exceeds the Maximum
Rate, the excess interest shall be applied to the principal of the Loans or, if
it exceeds such unpaid principal, refunded to the Company. In determining
whether the interest contracted for, charged, or received by the Administrative
Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent
permitted by applicable Law, (a) characterize any payment that is not principal
as an expense, fee, or premium rather than interest, (b) exclude voluntary
prepayments and the effects thereof, and (c) amortize, prorate, allocate, and
spread in equal or unequal parts the total amount of interest throughout the
contemplated term of the Obligations hereunder.

         10.10 COUNTERPARTS; INTEGRATION; EFFECTIVENESS. This Agreement may be
executed in counterparts (and by different parties hereto in different
counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single contract. This Agreement and the other
Loan Documents constitute the entire contract among the parties relating to the
subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except
as provided in Section 4.01, this Agreement shall become effective when it shall
have been executed by the Administrative Agent and when the Administrative Agent
shall have received counterparts hereof that, when taken together, bear the
signatures of each of the other parties hereto. Delivery of an executed
counterpart of a signature page of this Agreement by telecopy shall be effective
as delivery of a manually executed counterpart of this Agreement.

                                       99
<PAGE>
         10.11 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations
and warranties made hereunder and in any other Loan Document or other document
delivered pursuant hereto or thereto or in connection herewith or therewith
shall survive the execution and delivery hereof and thereof. Such
representations and warranties have been or will be relied upon by the
Administrative Agent and each Lender, regardless of any investigation made by
the Administrative Agent or any Lender or on their behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or knowledge of
any Default at the time of any Credit Extension, and shall continue in full
force and effect as long as any Loan or any other Obligation hereunder shall
remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding.

         10.12 SEVERABILITY. If any provision of this Agreement or the other
Loan Documents is held to be illegal, invalid or unenforceable, (a) the
legality, validity and enforceability of the remaining provisions of this
Agreement and the other Loan Documents shall not be affected or impaired thereby
and (b) the parties shall endeavor in good faith negotiations to replace the
illegal, invalid or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the illegal, invalid or
unenforceable provisions. The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

         10.13 REPLACEMENT OF LENDERS. If any Lender requests compensation under
Section 3.04, or if any Borrower is required to pay any additional amount to any
Lender or any Governmental Authority for the account of any Lender pursuant to
Section 3.01, or if any Lender is a Defaulting Lender, then the Company may, at
its sole expense and effort, upon notice to such Lender and the Administrative
Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in, and consents
required by, Section 10.06), all of its interests, rights and obligations under
this Agreement and the related Loan Documents to an assignee that shall assume
such obligations (which assignee may be another Lender, if a Lender accepts such
assignment), provided that:

         (a) the Company shall have paid (or caused a Designated Subsidiary to
pay) to the Administrative Agent the assignment fee specified in Section
10.06(b);

         (b) such Lender shall have received payment of an amount equal to the
outstanding principal of its Loans and L/C Advances, accrued interest thereon,
accrued fees and all other amounts payable to it hereunder and under the other
Loan Documents (including any amounts under Section 3.05) from the assignee (to
the extent of such outstanding principal and accrued interest and fees) or the
Company or applicable Designated Subsidiary (in the case of all other amounts);

         (c) in the case of any such assignment resulting from a claim for
compensation under Section 3.04 or payments required to be made pursuant to
Section 3.01, such assignment will result in a reduction in such compensation or
payments thereafter; and

         (d) such assignment does not conflict with applicable Laws.

                                      100
<PAGE>
         A Lender shall not be required to make any such assignment or
delegation if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling the Company to require such assignment
and delegation cease to apply.

         10.14 GOVERNING LAW; JURISDICTION; ETC.

         (a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF OREGON.

         (b) SUBMISSION TO JURISDICTION. EACH BORROWER AND LENDER IRREVOCABLY
AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF OREGON SITTING IN MULTNOMAH COUNTY
AND OF THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF OREGON, AND ANY
APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR
ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH OREGON STATE COURT OR, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE
PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING
SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE
JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN
ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT,
ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY
BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

                  (c) WAIVER OF VENUE. EACH BORROWER AND LENDER IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION. EACH OF THE
PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH
ACTION OR PROCEEDING IN ANY SUCH COURT.

                  (d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS
TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02.
NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

                                      101
<PAGE>
         10.15 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

         10.16 USA PATRIOT ACT NOTICE. Each Lender that is subject to the Act
(as hereinafter defined) and the Administrative Agent (for itself and not on
behalf of any Lender) hereby notifies the Borrowers that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the "Act"), it is required to obtain, verify and record
information that identifies the Borrowers, which information includes the name
and address of each Borrower and other information that will allow such Lender
or the Administrative Agent, as applicable, to identify such Borrower in
accordance with the Act.

         10.17 TIME IS OF THE ESSENCE. Time is of the essence of the Loan
Documents.

         10.18 JUDGMENT CURRENCY. If, for the purposes of obtaining judgment in
any court, it is necessary to convert a sum due hereunder or any other Loan
Document in one currency into another currency, the rate of exchange used shall
be that at which in accordance with normal banking procedures the Administrative
Agent could purchase the first currency with such other currency on the Business
Day preceding that on which final judgment is given. The obligation of each
Borrower in respect of any such sum due from it to the Administrative Agent or
the Lenders hereunder or under the other Loan Documents shall, notwithstanding
any judgment in a currency (the "Judgment Currency") other than that in which
such sum is denominated in accordance with the applicable provisions of this
Agreement (the "Agreement Currency"), be discharged only to the extent that on
the Business Day following receipt by the Administrative Agent of any sum
adjudged to be so due in the Judgment Currency, the Administrative Agent may in
accordance with normal banking procedures purchase the Agreement Currency with
the Judgment Currency. If the amount of the Agreement Currency so purchased is
less than the sum originally due to the Administrative Agent from any Borrower
in the Agreement Currency, such Borrower agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify the Administrative Agent or the
Person to whom such obligation was owing against such loss. If the amount of the
Agreement Currency so purchased is greater than the sum originally due to the
Administrative Agent in such currency, the Administrative Agent agrees to return
the amount of any excess to such Borrower (or to any other Person who may be
entitled thereto under applicable law).

                                      102
<PAGE>
         10.19 STATUTORY NOTICE. UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND
COMMITMENTS MADE BY THE LENDERS CONCERNING LOANS AND OTHER CREDIT EXTENSIONS
WHICH ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY
THE BORROWER'S RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION AND BE SIGNED
BY THE LENDERS TO BE ENFORCEABLE.

                                      103
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first above written.

                                       THE GREENBRIER COMPANIES, INC., a
                                       Delaware corporation

                                       By:  /s/ Mark Rittenbaum
                                            ------------------------------------

                                       Name:  Mark Rittenbaum
                                              ----------------------------------

                                       Title:  Senior Vice President
                                               ---------------------------------

                                       TRENTONWORKS LIMITED, a Nova Scotia
                                       corporation

                                       By:  /s/ Robert Hickey
                                            ------------------------------------

                                       Name:  Robert Hickey
                                              ----------------------------------

                                       Title:  Vice President & General
                                               Manager/Secretary
                                               ---------------------------------

                                       By:  /s/ Eldon MacDonald
                                            ------------------------------------

                                       Name:  Eldon MacDonald
                                              ----------------------------------

                                       Title:   Controller
                                                --------------------------------

                                     S - 1
<PAGE>
                                       BANK OF AMERICA, N.A., as
                                       Administrative Agent

                                       By:  /s/ Tiffany Shin
                                            ------------------------------------

                                       Name:  Tiffany Shin
                                              ----------------------------------

                                       Title:   Assistant Vice President
                                                --------------------------------

                                     S - 2
<PAGE>
                                       BANK OF AMERICA, N.A., as a Lender, L/C
                                       Issuer and Swing Line Lender

                                       By:  /s/ Eric Eidler
                                            ------------------------------------

                                       Name:  Eric Eidler
                                              ----------------------------------

                                       Title:  Senior Vice President
                                               ---------------------------------

                                     S - 3
<PAGE>
                                       BANK OF AMERICA, NATIONAL ASSOCIATION,
                                       acting through its Canada Branch

                                       By:  /s/ Medina Sales De Andrade
                                            ------------------------------------

                                       Name:  Medina Sales De Andrade
                                              ----------------------------------

                                       Title:   Assistant Vice President
                                                --------------------------------

                                     S - 4
<PAGE>
                                       UNION BANK OF CALIFORNIA, N.A., as a
                                       Lender

                                        By:  /s/ Thomas Marks
                                             -----------------------------------

                                        Name:  Thomas Marks
                                               ---------------------------------

                                        Title:  Vice President
                                                --------------------------------

                                     S - 5
<PAGE>
                                       U.S. BANK NATIONAL ASSOCIATION, as a
                                       Lender

                                       By:  /s/ Scott J. Bell
                                            ------------------------------------

                                       Name:  Scott J. Bell
                                              ----------------------------------

                                       Title:  Senior Vice President
                                               ---------------------------------

                                     S - 6
<PAGE>
                                       KEYBANK NATIONAL ASSOCIATION, as a
                                       Lender

                                       By:  /s/ Steve Maxwell
                                            ------------------------------------

                                       Name:  Steve Maxwell
                                              ----------------------------------

                                       Title:  Vice President
                                               ---------------------------------

                                     S - 7
<PAGE>
                                       BRANCH BANKING & TRUST COMPANY, as
                                       a Lender

                                       By:  /s/ Robert M. Searson
                                            ------------------------------------

                                       Name:  Robert M. Searson
                                              ----------------------------------

                                       Title:  Senior Vice President
                                               ---------------------------------

                                     S - 8
<PAGE>
                                       CAYLON NEW YORK BRANCH, as a Lender

                                       By:  /s/ Olivier Audemard
                                            ------------------------------------

                                       Name:  Olivier Audemard
                                              ----------------------------------

                                       Title:  Managing Director
                                               ---------------------------------

                                       By:  /s/ Angel Naranjo
                                            ------------------------------------

                                       Name:  Angel Naranjo
                                              ----------------------------------

                                       Title:  Vice President
                                               ---------------------------------

                                     S - 9
<PAGE>
                                       CREDIT INDUSTRIEL ET COMMERCIAL,
                                       NEW YORK BRANCH, as a Lender

                                       By:  /s/ Adrienne Molloy
                                            ------------------------------------

                                       Name:  Adrienne Molloy
                                              ----------------------------------

                                       Title:  Vice President
                                               ---------------------------------

                                       By:  /s/ Alex Aupoix
                                            ------------------------------------

                                       Name:  Alex Aupoix
                                              ----------------------------------

                                       Title:  Vice President
                                               ---------------------------------

                                     S - 10
<PAGE>
                                  OTHER LENDERS

                                     S - 11

<PAGE>
                                                                   SCHEDULE 1.01

                             MANDATORY COST FORMULAE

1.       The Mandatory Cost (to the extent applicable pursuant to Section 2.09)
         is an addition to the interest rate to compensate Lenders for the cost
         of compliance with:

         (a)      the requirements of the Bank of England and/or the Financial
                  Services Authority (or, in either case, any other authority
                  which replaces all or any of its functions); or

         (b)      the requirements of the European Central Bank.

2.       On the first day of each Interest Period (or as soon as practicable
         thereafter) the Administrative Agent shall calculate, as a percentage
         rate, a rate (the "Additional Cost Rate") for each Lender, in
         accordance with the paragraphs set out below. The Mandatory Cost will
         be calculated by the Administrative Agent as a weighted average of the
         Lenders' Additional Cost Rates (weighted in proportion to the
         percentage participation of each Lender in the relevant Loan) and will
         be expressed as a percentage rate per annum. The Administrative Agent
         will, at the request of the Company or any Lender, deliver to the
         Company or such Lender as the case may be, a statement setting forth
         the calculation of any Mandatory Cost.

3.       The Additional Cost Rate for any Lender lending from a Lending Office
         in a Participating Member State will be the percentage notified by that
         Lender to the Administrative Agent. This percentage will be certified
         by such Lender in its notice to the Administrative Agent as the cost
         (expressed as a percentage of such Lender's participation in all Loans
         made from such Lending Office) of complying with the minimum reserve
         requirements of the European Central Bank in respect of Loans made from
         that Lending Office.

4.       The Additional Cost Rate for any Lender lending from a Lending Office
         in the United Kingdom will be calculated by the Administrative Agent as
         follows:

         (a)      in relation to any Loan in Sterling:

                                  AB+C(B-D)+E x 0.01        per cent per annum
                                  ------------------
                                     100 - (A+C)

         (b)      in relation to any Loan in any currency other than Sterling:

                                       E x 0.01             per cent per annum
                                       --------
                                         300

Where:

         "A"       is the percentage of Eligible Liabilities (assuming these to
                   be in excess of any stated minimum) which that Lender is from
                   time to time required to maintain as

                                  Schedule 1.01
                                     Page 1
<PAGE>
                   an interest free cash ratio deposit with the Bank of England
                   to comply with cash ratio requirements.

         "B"       is the percentage rate of interest (excluding the Applicable
                   Rate, the Mandatory Cost and any interest charged on overdue
                   amounts pursuant to the first sentence of Section 2.08(b)
                   and, in the case of interest (other than on overdue amounts)
                   charged at the Default Rate, without counting any increase in
                   interest rate effected by the charging of the Default Rate)
                   payable for the relevant Interest Period of such Loan.

         "C"       is the percentage (if any) of Eligible Liabilities which that
                   Lender is required from time to time to maintain as interest
                   bearing Special Deposits with the Bank of England.

         "D"       is the percentage rate per annum payable by the Bank of
                   England to the Administrative Agent on interest bearing
                   Special Deposits.

         "E"       is designed to compensate Lenders for amounts payable under
                   the Fees Regulations and is calculated by the Administrative
                   Agent as being the average of the most recent rates of charge
                   supplied by the Lenders to the Administrative Agent pursuant
                   to paragraph 7 below and expressed in pounds per L1,000,000.

5.       For the purposes of this Schedule:

         (a)      "Eligible Liabilities" and "Special Deposits" have the
                  meanings given to them from time to time under or pursuant to
                  the Bank of England Act 1998 or (as may be appropriate) by the
                  Bank of England;

         (b)      "Fees Regulations" means the FSA Supervision Manual or such
                  other law or regulation as may be in force from time to time
                  in respect of the payment of fees for the acceptance of
                  deposits;

         (c)      "Fee Tariffs" means the fee tariffs specified in the Fees
                  Regulations under the activity group A.1 Deposit acceptors
                  (ignoring any minimum fee or zero rated fee required pursuant
                  to the Fees Regulations but taking into account any applicable
                  discount rate); and

         (d)      "Tariff Base" has the meaning given to it in, and will be
                  calculated in accordance with, the Fees Regulations.

6.       In application of the above formulae, A, B, C and D will be included in
         the formulae as percentages (i.e. 5% will be included in the formula as
         5 and not as 0.05). A negative result obtained by subtracting D from B
         shall be taken as zero. The resulting figures shall be rounded to four
         decimal places.

7.       If requested by the Administrative Agent or the Company, each Lender
         with a Lending Office in the United Kingdom or a Participating Member
         State shall, as soon as practicable after publication by the Financial
         Services Authority, supply to the

                                  Schedule 1.01
                                     Page 2
<PAGE>
         Administrative Agent and the Company, the rate of charge payable by
         such Lender to the Financial Services Authority pursuant to the Fees
         Regulations in respect of the relevant financial year of the Financial
         Services Authority (calculated for this purpose by such Lender as being
         the average of the Fee Tariffs applicable to such Lender for that
         financial year) and expressed in pounds per L1,000,000 of the Tariff
         Base of such Lender.

8.       Each Lender shall supply any information required by the Administrative
         Agent for the purpose of calculating its Additional Cost Rate. In
         particular, but without limitation, each Lender shall supply the
         following information in writing on or prior to the date on which it
         becomes a Lender:

         (a)      its jurisdiction of incorporation and the jurisdiction of the
                  Lending Office out of which it is making available its
                  participation in the relevant Loan; and

         (b)      any other information that the Administrative Agent may
                  reasonably require for such purpose.

Each Lender shall promptly notify the Administrative Agent in writing of any
change to the information provided by it pursuant to this paragraph.

9.       The percentages or rates of charge of each Lender for the purpose of A,
         C and E above shall be determined by the Administrative Agent based
         upon the information supplied to it pursuant to paragraphs 7 and 8
         above and on the assumption that, unless a Lender notifies the
         Administrative Agent to the contrary, each Lender's obligations in
         relation to cash ratio deposits, Special Deposits and the Fees
         Regulations are the same as those of a typical bank from its
         jurisdiction of incorporation with a Lending Office in the same
         jurisdiction as such Lender's Lending Office.

10.      The Administrative Agent shall have no liability to any Person if such
         determination results in an Additional Cost Rate which over- or
         under-compensates any Lender and shall be entitled to assume that the
         information provided by any Lender pursuant to paragraphs 3, 7 and 8
         above is true and correct in all material respects.

11.      The Administrative Agent shall distribute the additional amounts
         received as a result of the Mandatory Cost to the Lenders on the basis
         of the Additional Cost Rate for each Lender based on the information
         provided by each Lender pursuant to paragraphs 3, 7 and 8 above.

12.      Any determination by the Administrative Agent pursuant to this Schedule
         in relation to a formula, the Mandatory Cost, an Additional Cost Rate
         or any amount payable to a Lender shall, in the absence of manifest
         error, be conclusive and binding on all parties hereto.

13.      The Administrative Agent may from time to time, after consultation with
         the Company and the Lenders, determine and notify to all parties any
         amendments which are required to be made to this Schedule in order to
         comply with any change in law, regulation or any requirements from time
         to time imposed by the Bank of England, the Financial Services
         Authority or the European Central Bank (or, in any case, any other
         authority which

                                  Schedule 1.01
                                     Page 3
<PAGE>
         replaces all or any of its functions) and any such determination shall,
         in the absence of manifest error, be conclusive and binding on all
         parties hereto.

                                  Schedule 1.01
                                     Page 4
<PAGE>
                                                                   SCHEDULE 2.01

                                   COMMITMENTS

                           AND APPLICABLE PERCENTAGES

<TABLE>
<CAPTION>
                                                                                   APPLICABLE              VOTING
  I. U.S. REVOLVING CREDIT FACILITY                               COMMITMENT       PERCENTAGE              PERCENTAGE
  ---------------------------------                               ----------       ----------              ----------

<S>                                                              <C>               <C>                     <C>
1.   Bank of America, N.A.                                       $  11,000,000     0.088000000             0.073333333

2.   Union Bank of California, N.A.                              $  26,250,000     0.210000000             0.175000000

3.   U.S. Bank National Association                              $  26,250,000     0.210000000             0.175000000

4.   KeyBank National Association                                $  17,500,000     0.140000000             0.116666667

5.   Branch Banking & Trust Company                              $  15,000,000     0.120000000             0.100000000

6.   Calyon New York Branch                                      $  15,000,000     0.120000000             0.100000000

7.   Credit Industriel et Commercial,                            $  14,000,000     0.112000000             0.093333333

     New York Branch

     TOTALS                                                      $125,000,000      100%
</TABLE>

<TABLE>
<CAPTION>
  II.CANADIAN REVOLVING                                                           APPLICABLE              VOTING
     CREDIT FACILITY                                           COMMITMENT         PERCENTAGE              PERCENTAGE
     ---------------                                           ----------         ----------              ----------
<S>                                                      <C>                      <C>                     <C>
     Bank of America, National Association               CDN$  30,000,000(1)       100%                    0.166666667(1)
     acting through its Canada Branch

     TOTALS                                              CDN$ 30,000,000                                   100%
</TABLE>

--------
(1)  For voting purposes only, the Canadian facility shall be deemed to
     constitute US$ 25,000,000.

                                  Schedule 2.01
                                     Page 1
<PAGE>
                                                                   SCHEDULE 5.05

                              SUPPLEMENT TO INTERIM

                              FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
                                                                                 AMOUNT
                                                                             (in thousands)
<S>                                                                          <C>
         1.  Participation as of May 31, 2005(2)                                $  21,447

         2.  Railcar Operating Leases as of August 31, 2004*                    $  16,058

         3.  Other Operating Leases as of August 31, 2004*                      $  13,356

         4.  Purchase Commitments as of May 31, 2005(3)                         $ 152,000

         5.  See also Schedule 7.03
</TABLE>

*    Minimum future amounts payable under noncancellable leases

(2)  Participation is payable to Union Pacific under the Golden West Agreements
     over the next five years.

(3)  Commitments to purchase new rail cars from unaffiliated manufacturers to be
     leased to third party customers.

                                 Schedule 5.05
<PAGE>
                                                                   SCHEDULE 5.06

                                   LITIGATION

                  Litigation was initiated against the Company on April 20, 2004
in the Supreme Court of Nova Scotia by a customer, BC Rail Partnership, alleging
breach of contract and negligent manufacture and design of railcars which were
involved in a derailment.

                  On November 3, 2004, and November 4, 2004, in the District
Court of Tarrant County, Texas, and in the District Court of Lancaster County,
Nebraska, respectively, litigation was initiated against the Company by
Burlington Northern Santa Fe (BNSF). BNSF alleges the failure of a component
part on a railcar manufactured by Greenbrier in 1988, resulted in a derailment
and a chemical spill. The complaint alleges in excess of $14 million in damages.
Answers have been filed in both cases and the parties have agreed to stay the
Nebraska action and proceed with the litigation in Texas.

                  On September 23, 2004, two current and one former Company
employees filed a civil complaint in Multnomah County Circuit Court, State of
Oregon, alleging that Greenbrier failed to comply with Oregon wage and hour
laws. Plaintiffs seek injunctive relief and unspecified unpaid wages, penalty
wages, costs, disbursements and attorneys' fees.

                                  Schedule 5.06
<PAGE>
                                                                   SCHEDULE 5.09

                                  ENVIRONMENTAL

                  Environmental studies have been conducted of owned and leased
properties that indicate additional investigation and some remediation on
certain properties may be necessary. The Portland, Oregon manufacturing facility
is located on the Willamette River. The United States Environmental Protection
Agency (EPA) has classified portions of the river bed, including the portion
fronting the facility, as a federal "national priority list" or "superfund" site
due to sediment contamination (the "Portland Harbor Site"). The Company and more
than 60 other parties have received a "General Notice" of potential liability
from the EPA relating to the Portland Harbor Site. The letter advised the
Company that it may be liable for the costs of investigation and remediation
(which liability may be joint and several with other potentially responsible
parties) as well as for natural resource damages resulting from releases of
hazardous substances to the site. At this time, ten private and public entities
have signed an Administrative Order on Consent to perform a remedial
investigation/feasibility study of the Portland Harbor Site under EPA oversight,
and five additional entities have not signed such consent, but are nevertheless
contributing money to the effort. The study is expected to be completed in 2007.
In addition, the Company has entered into a Voluntary Clean-Up Agreement with
the Oregon Department of Environmental Quality in which the Company agreed to
conduct an investigation of whether, and to what extent, past or present
operations at the Portland property may have released hazardous substances to
the environment. Under this oversight, the Company is also conducting
groundwater remediation relating to a historical spill on the property.

         There is no indication that Company operations have contributed to
contamination of the Willamette River bed, although uses by prior owners and
operators of the property may have contributed. Nevertheless, this
classification of the Willamette River may have an impact on the value of the
Company's investment in the property and has resulted in the Company initially
bearing a portion of the cost of an EPA mandated remedial investigation,
feasibility study, natural resources damages assessment and incurring costs
mandated by the State of Oregon to control groundwater discharges to the
Willamette River. Neither the cost of the investigation nor the groundwater
control effort is currently determinable. However, a portion of the outlay
related to the state of Oregon mandated costs has been reimbursed by an
unaffiliated party, and other outlays may also be recoverable. The Company may
be required to perform periodic maintenance dredging in order to continue to
launch vessels from its launch ways on the river, and classification as a
superfund site could result in some limitations on future dredging and launch
activity. Because these investigations are still underway, the Company is unable
to determine the amount of its ultimate liability relating to these matters.
Based on the results of the pending investigations and future assessments of
natural resource damages, the Company may be required to incur costs associated
with additional phases of investigation or remedial action, and the Company may
be liable for damages to natural resources. Any of these matters could adversely
affect the Company's business and results of operations. Management believes
that the Company's operations adhere to sound environmental practices,
applicable laws and regulations.

                                  Schedule 5.09
<PAGE>
                                                                   SCHEDULE 5.11

                                 TAX DISCLOSURES

         The Internal Revenue Service is currently conducting an audit of the
Company's income tax returns for the years ended 1999, 2000, 2001 and 2002. In
connection with the audit, the Service has focused particular attention on the
Company's decision in 2002 to write-off of substantial portions of its
investment in European operations. As of the date of the Closing, the Service
has not completed its fieldwork or proposed any assessment or deficiency.
However, the Company anticipates that, upon completion of its audit, the Service
may propose adjustments or assessments.

                                  Schedule 5.11
<PAGE>
                                                                   SCHEDULE 5.13

                                SUBSIDIARIES AND

                            OTHER EQUITY INVESTMENTS

                                  SUBSIDIARIES

<TABLE>
<CAPTION>
         PART (A)                                                    PERCENTAGE OWNERSHIP
         --------                                                    --------------------

<S>                                                          <C>
Autostack Corporation                                        100% Greenbrier Leasing Corporation
Greenbrier-Concarril, LLC                                    100% The Greenbrier Companies, Inc.
Greenbrier Europe B.V.                                       100% Greenbrier UK Limited
Greenbrier Germany GmbH                                      100% Greenbrier Europe B.V.
Greenbrier Leasing Corporation                               100% The Greenbrier Companies, Inc.
Greenbrier Leasing, L.P.                                     Its General Partner is Greenbrier Management Services,
                                                             LLC

Greenbrier Leasing Limited                                   100% Greenbrier Leasing Corporation
Greenbrier Leasing Limited Partner, LLC                      100% Greenbrier Leasing Corporation
Greenbrier Management Services, LLC                          100% Greenbrier Leasing Corporation
Greenbrier Railcar, Inc.                                     100% Greenbrier Leasing Corporation
Greenbrier U.K. Limited                                      100% The Greenbrier Companies, Inc.
Gunderson, Inc.                                              67% The Greenbrier Companies, Inc.
                                                             33% Greenbrier Leasing Corporation

Gunderson-Concarril, S.A. de C.V.                            100% Greenbrier-Concarril, LLC
Gunderson Marine, Inc.                                       100% Gunderson, Inc.
Gunderson Rail Services, Inc.                                100% Gunderson, Inc.
Gunderson Specialty Products, LLC                            100% Gunderson, Inc.
Trenton Works Limited                                        3048389 Nova Scotia Limited
</TABLE>

<TABLE>
<CAPTION>
         PART (B)                                                     PERCENTAGE OWNERSHIP
         --------                                                     --------------------
<S>                                                          <C>
         3048389 Nova Scotia Limited                         100% of the common stock owned by The Greenbrier
                                                             Companies, Inc.
                                                             Preferred investors
                                                             also have an
                                                             interest in this
                                                             entity.

         Ohio Castings Company, LLC                          33 1/3% Gunderson Specialty Products, LLC

         Alliance Castings Company, LLC                      100% Ohio Castings Company, LLC

         Chicago Castings Company, LLC                       100% Ohio Castings Company, LLC

         WagonySwidnica S.A.                                  97% owned by Greenbrier Europe B.V.
</TABLE>

                                  Schedule 5.13
<PAGE>
                                                                SCHEDULE 7.01(B)

                                 EXISTING LIENS

THE GREENBRIER COMPANIES, INC.

Delaware Lien No. 40606998, IOS Capital, Secured Party, Expires 02-26-09

Delaware Lien No. 40608481, IOS Capital, Secured Party, Expires 02-26-09

Delaware Lien No. 41828872, US Bancorp, Secured Party, Expires 06-30-09

Delaware Lien No. 41980608, IOS Capital, Secured Party, Expires 07-13-09

Delaware Lien No. 50688375, IOS Capital, Secured Party, Expires 02-23-10

Oregon Lien No. 594684, U.S. Bancorp, Secured Party, Expires 07-30-07

Oregon Lien No. 623352, U.S. Bancorp, Secured Party, Expires 06-05-08

Oregon Lien No. 6405515 IOS Capital, Secured Party, Expires 11-25-08

Nova Scotia Lien No. 8898981, Bank of America, National Association, Secured
Party, Expires 11-01-14.

GREENBRIER LEASING CORPORATION

Delaware Lien No. 10924782, The Cit Group/Equipment, Secured Party, Expires
08-28-06

*Delaware Lien No. 21972540, Union Bank of California, N.A., Secured Party,
Expires 07-15-07

Delaware Lien No. 21973720, The Cit Group/Equipment, Secured Party, Expires
08-07-07

Delaware Lien No. 31453946, Dell Financial Services, L.P., Secured Party,
Expires 06-09-08

Delaware Lien No. 31525933, First Union Commercial Corporation Equipment Leasing
Division, Secured Party, Expires 05-13-08

Oregon Lien No. 354519, Metlife Capital Credit LP, Secured Party, Expires
1-14-2007

Oregon Lien No. 530270, Bombardier Capital Rail, Inc., Secured Party, Expires
10-18-2005

Oregon Lien No. 6337526, Key Equipment Finance (Key Corporate Capital, Inc.),
Secured Party, Expires 9-15-2008

                                  Schedule 7.01
<PAGE>
*Surface Transportation Board Filing #20879 - The current Union Bank of
California/Bank of America Security Agreement financing -- Debtors under this
financing include Greenbrier Leasing Corporation, Greenbrier Railcar, Inc. and
Autostack Corporation.

GREENBRIER RAILCAR, INC.

*Delaware Lien No. 21939192, Union Bank of California, N.A., Secured Party,
Expires 07-15-07

GREENBRIER LEASING, LTD.

NONE.

AUTOSTACK CORPORATION

*Oregon Original Lien No. 589746, Union Bank of California NA, Secured Party,
Expires 06-10-07.

GUNDERSON, INC.

*Oregon Lien No. 8642, U.S. Bank National Association, Secured Party, Expires
05-24-10

*Oregon Lien No. 19860, U.S. Bank National Association, Secured Party, Expires
09-01-07

*Oregon Lien No. 208053, US Bank NA, Secured Party, Expires 02-04-09.

Oregon Lien No. 325167, Yale Financial Services Inc., Secured Party, Expires
06-26-06.

Oregon Lien No. 406342, KeyCorp Leasing, a Division of Key Corporate Capital
Inc., Secured Party, Expires 01-14-08.

Oregon Lien No. 406343, KeyCorp Leasing, a Division of Key Corporate Capital
Inc., Secured Party, Expires 01-14-08.

Oregon Lien No. 483009, KeyCorp Leasing, a Division of Key Corporate Capital
Inc., Secured Party, Expires 09-10-09.

Oregon Lien No. 517685, Wells Fargo Equipment Finance Inc., Secured Party,
Expires 06-25-05

Oregon Lien No. 518560, Pacific Office Automation, Secured Party, Expires
07-03-05

Oregon Lien No. 542219, Toyota Motor Credit Corporation, Secured party, Expires
02-13-06

*Oregon Lien No. 585171, U.S. Bank National Association, Secured Party, Expires
04-25-07

                                  Schedule 7.01
<PAGE>
Oregon Lien No. 589098, Key Equipment Finance, a Division of Key Corporate
Capital Inc., Secured Party, Expires 06-04-07

Oregon Lien No. 601032, Toyota Motor Credit Corporation, Secured Party, Expires
10-07-07

*Oregon Lien No. 604529, Sause Bros., Inc., Secured Party, Expires 11-15-07

*Oregon Lien No. 610210, Sause Bros., Inc., Secured Party, Expires 01-22-08

Oregon Lien No. 617405, CIT Technology Financing Services, Inc., Secured Party,
Expires 04-08-08

Oregon Lien No. 631270, Toyota Motor Credit Corporation, Secured Party, Expires
08-19-08

Oregon Lien No. 631254, Toyota Motor Credit Corporation, Secured Party, Expires
08-19-08

Oregon Lien No. 631249, Toyota Motor Credit Corporation, Secured Party, Expires
08-19-08

Oregon Lien No. 631248, Toyota Motor Credit Corporation, Secured Party, Expires
08-19-08

Oregon Lien No. 631276, Toyota Motor Credit Corporation, Secured Party, Expires
08-19-08

Oregon Lien No. 6363329, Ferguson Enterprises, Inc. and Famillan Northwest, Inc.
Secured Parties, Expires 10-09-08

Oregon Lien No. 6381266, Toyota Motor Credit Corporation, Secured Party, Expires
10-28-08

Oregon Lien No. 6407179, Toyota Motor Credit Corporation, Secured Party, Expires
11-25-08

Oregon Lien No. 6470083, Toyota Motor Credit Corporation, Secured Party, Expires
02-06-09

Oregon Lien No. 6543238, Toyota Motor Credit Corporation, Secured Party, Expires
04-20-09

Oregon Lien No. 6543288, Toyota Motor Credit Corporation, Secured Party, Expires
04-20-09

Oregon Lien No. 6660995, Sause Bros., Inc., Secured Party, Expires 08-10-09

Oregon Lien No. 6787129, Key Corp. Capital, Secured Party, Expires 12-29-09

Oregon Lien No. 6795479, CIT Technology Financing Services, Inc., Secured Party,
Expires 01-04-10

*Surface Transportation Board Filing #18689 - Security Agreement between
Gunderson, Inc., the Debtor, and United States National Bank of Oregon (now U.S.
Bank National Association) dated January 31, 1994

                                  Schedule 7.01
<PAGE>
GUNDERSON RAIL SERVICES, INC.

*Oregon Lien No. 269064, U.S. Bank National Association, as Agent, Secured
Party, Expires 06-01-10.

*Oregon Lien No. 269167, U.S. Bank National Association, as Agent, Secured
Party, Expires 06-01-10.

*Oregon Lien No. 512957, U.S. Bank National Association, as Agent, Secured
Party, Expires 05-18-10.

*Oregon Lien No. 603028, U.S. Bank National Association, as Agent, Secured
Party, Expires 10-30-07

Oregon Lien No. 604799, GE Capital Corporation, Secured Party, Expires 11-19-07

*Oregon Lien No. 631861, U.S. Bank National Association, Secured Party, Expires
08-26-08

*Oregon Lien No. 631860, U.S. Bank National Association, Secured Party, Expires
08-26-08

Oregon Lien No. 6399005, Air Liquide America LP, Secured Party, Expires 11-18-08

*Oregon Lien No. 6453728, U.S. Bank National Association, Secured Party, Expires
01-22-09

*Oregon Lien No. 6453740, U.S. Bank National Association, Secured Party, Expires
01-22-09

Oregon Lien No. 6588913, Toyota Motor Credit Corporation, Secured Party, Expires
06-03-09

Oregon Lien No. 6817192, Gunderson Rail Services, Inc., Secured Party, Expires
01-28-10

*Oregon Lien No. 208053, US Bank NA, Secured Party, Expires 02-04-09.

*Washington Lien No. 97-101-0050, United States National Bank of Oregon, Secured
Party, Expires 04-11-07

Texas Lien No. 03-0029174581, NMHG Financial Services, Inc., Secured Party,
recorded 05-28-03.

*Surface Transportation Board Filing #18691 - Security Agreement between
Gunderson Rail Car Services, Inc., the Debtor, and United States National Bank
of Oregon (now U.S. Bank National Association) dated January 31, 1994

GUNDERSON LEASING INC.

*Oregon Lien No. 208053, US Bank NA, Secured Party, Expires 02-04-09.

                                  Schedule 7.01
<PAGE>
GUNDERSON MARINE, INC.

*Oregon Lien No. 208053, US Bank NA, Secured Party, Expires 02-04-09.

Oregon Lien No. 483009, KeyCorp Leasing, a Division of Key Corporate Capital
Inc., Secured Party, Expires 09-10-09

*Surface Transportation Board Filing #18692 - Security Agreement between
Gunderson Marine, Inc., the Debtor, and United States National Bank of Oregon
(now U.S. Bank National Association) dated January 31, 1994

GREENBRIER-CONCARRIL, LLC

Delaware Lien No. 30990534, Gunderson, Inc., Secured Party, Expires 04-16-08

*Delaware Lien No. 31410292, Bombardier Corporation, Secured Party, Expires
06-04-08

Surface Transportation Board Filing #24429 - An "in-house" financing with
Gunderson, Inc. as creditor and Greenbrier Concarril LLC as debtor, dated April
1, 2003.

*Surface Transportation Board Filing #24484 - A financing with Greenbrier
Concarril LLC as debtor and Bombardier Corporation as creditor, dated April 1,
2003.

ALLIANCE CASTINGS COMPANY, LLC

Delaware Lien No. 33323212, Director of the Department of Development of the
State of Ohio, Expires 12-17-08

TRENTONWORKS LIMITED

Nova Scotia Lien No. 318824, Caterpillar Financial Services Ltd., Secured Party,
Expires 08-03-05

Nova Scotia Lien No. 3483885, The Greenbrier Companies, Inc., Secured Party,
Expires 10-25-10. The Secured Party subordinated its security interest to Bank
of America, NA pursuant to Postponement and Subordination Agreement dated
10-29-04.

Nova Scotia Lien No. 3608420, Caterpillar Financial Services Ltd., Secured
Party, Expires 11-23-05

Nova Scotia Lien No. 3608439, Caterpillar Financial Services Ltd., Secured
Party, Expires 11-23-05

Nova Scotia Lien No. 5844624, Honda Canada Finance Inc., Secured Party, Expires
08-29-07

                                  Schedule 7.01
<PAGE>
Nova Scotia Lien No. 6174873, Her Majesty the Queen in right of the Province of
Nova Scotia, Secured Party, Expires 11-28-12. The Secured Party subordinated its
security interest to Bank of America, NA pursuant to Postponement and
Subordination Agreement dated 10-29-04.

Nova Scotia Lien No. 6491343, CIT Financial Ltd., Secured Party, Expires
02-28-10.

Nova Scotia Lien No. 6670104, BMW Canada Inc., Secured Party, Expires 04-15-07

Nova Scotia Lien No. 7196884, CitiCorp Vendor Finance, Ltd., Secured Party,
Expires 08-18-08

Nova Scotia Lien No. 7737924, VW Credit Canada Inc., Secured Party, Expires
01-14-09.

Nova Scotia Lien No. 7947706, CitiCorp Vendor Finance, Ltd., Secured Party,
Expires 03-17-09.

Nova Scotia Lien No. 8694200, CitiCorp Vendor Finance, Ltd., Secured Party,
Expires 09-08-09

Nova Scotia Lien No. 8694246, CitiCorp Vendor Finance, Ltd., Secured Party,
Expires 09-08-09

Nova Scotia Lien No. 8694273, CitiCorp Vendor Finance, Ltd., Secured Party,
Expires 09-08-09

Nova Scotia Lien No. 8694291, CitiCorp Vendor Finance, Ltd., Secured Party,
Expires 09-08-09

Nova Scotia Lien No. 8694317, CitiCorp Vendor Finance, Ltd., Secured Party,
Expires 09-08-09.

Nova Scotia Lien No. 8892969, Bank of America, National Association,, Secured
Party, Expires 10-20-14.

Nova Scotia Lien No. 9211989, CitiCorp Vendor Finance, Ltd., Secured Party,
Expires 02-07-10

Nova Scotia Lien No. 9212023, CitiCorp Vendor Finance, Ltd., Secured Party,
Expires 02-07-10

*    Denotes liens to be released at or shortly after closing.

                                  Schedule 7.01
<PAGE>
                                                                SCHEDULE 7.03(B)

                                  INDEBTEDNESS

                          (AMOUNTS AS OF MAY 31, 2005)

<TABLE>
<CAPTION>
                     DEBT                                                        MAXIMUM INDEBTEDNESS
                     ----                                                        --------------------

<S>                                                                              <C>
1.  TrentonWorks - Term Loan                                                         CDN8,800,000

2.  Senior Unsecured Notes                                                           $175,000,000

3.  Guarantee performance of Gunderson Rail Services under Supply Agreement               Unknown

4.  Redemption debt Greenbrier -Concarril                                            $  7,500,000

5.  Guaranty of Swap Contracts - Foreign Currency :                                           N/A
         UBOC
         Key Bank
         Wells Fargo
         Bank of America
         European Operations
6.  Guaranty of Swap Contracts - Interest Rate                                                N/A
         KeyBank
         Bank of America
11.  Guaranty of Ohio Castings Company, LLC                                          $   3,100,000(4)
11.  Borrowings of Greenbrier Germany with KfW                                       E   5,400,000
12.  Borrowings of The Greenbrier Companies, Inc. with KfW                           $   8,300,000
13.  Various Performance Guarantees - European Operations                            $  20,100,000*
14.  Various Lines of Credit - European Operations(5)                                $  19,800,000*
15.  Key Bank Capitalized Leases                                                     $  10,900,000
16.  Letters of Credit - Domestic Manufacturing Operations                           $   1,800,000
17.  Non-Competes and other debt                                                     $     200,000
18.  Subordinated Debt - Golden West Agreements                                      $   9,800,000
</TABLE>

*    Translated at U.S. dollar equivalent.

--------

(4)  Ohio Castings, as of May 31, 2005, has $9.3 million of third party debt for
     which the Company has guaranteed approximately $3.1 million. In the event
     there is a change of control or insolvency by any of the three 33%
     investors that have guaranteed the debt, the remaining investors' share of
     the guarantee will increase proportionately.

(5)  Non-recourse to The Greenbrier Companies, Inc.

                                Schedule 7.03(b)
<PAGE>
                                                                   SCHEDULE 7.09

             CONTRACTUAL OBLIGATIONS LIMITING RESTRICTED PAYMENTS BY
                            ANY SUBSIDIARY GUARANTOR

The Golden West Agreements

Master Equipment Lease Agreement between Keycorp Leasing and Gunderson entities
dated 8/31/99

                                  Schedule 7.09
                                     Page 1
<PAGE>
                                                                  SCHEDULE 10.02

                         ADMINISTRATIVE AGENT'S OFFICE,

                          CERTAIN ADDRESSES FOR NOTICES

BORROWER:

THE GREENBRIER COMPANIES, INC.
One Centerpointe Drive, Suite 200
Lake Oswego, OR  97035
Attn:             Mark J. Rittenbaum
                  Telephone: (503)598-3828
                  Telecopier: (503)684-7553
                  Electronic Mail: mark.rittenbaum@gbrx.com

TRENTONWORKS LIMITED
34 Power Plant Road
Trenton, Nova Scotia
Canada B0K1X0
Attn:             Eldon MacDonald
                  Telephone: (902)752-1541 Ext. 263
                  Telecopier: (902)752-6648
                  Electronic Mail:  emacdonald@trentonworks.ca

ADMINISTRATIVE AGENT'S OFFICE:

Administrative Agent's Office (U.S.)
(for payments and Requests for Credit Extensions):
Bank of America, N.A.
Credit Services West
Mail Code:  CA4-702-02-25
2001 Clayton Road, Floor 2, Building B
Concord, CA 94520
Attention:        Gardelyn Jayme
                  Telephone:  (925)675-7184
                  Telecopier:  (888)969-9232
                  Electronic Mail:  gardelyn.o.jayme@bankofamerica.com

Wire Instruction (for Dollars - including Swing Line)
                  Bank of America, Dallas TX
                  ABA# 111000012
                  Account Name:  Corporate FTA
                  Account No.:  3750836479
                  Attention:  Gardelyn Jayme
                  Ref.:  The Greenbrier Companies

                                 Schedule 10.02
                                     Page 1
<PAGE>
Administrative Agent's Office (Canada)

Bank of America, N.A., Canada Branch
200 Front Street West, Suite 2700
Toronto, Ontario, M5V3L2
Attention:        Medina Sales De Andrade
                  Telephone:  (416)349-5433
                  Telecopier:  (416)349-4283
                  Electronic Mail:  medina.sales_de_andrade@bankofamerica.com

Other Notices as Administrative Agent:
Bank of America, N.A.
Agency Management
Mail Code:  WA1-501-37-20
800 Fifth Avenue, Floor 37
Seattle, WA 98104
Attention:        Tiffany Shin
                  Telephone:  (206)358-0078
                  Telecopier:  (206)358-0971
                  Electronic Mail:  tiffany.shin@bankofamerica.com

SWING LINE LENDER:

Bank of America, N.A.
Credit Services West
Mail Code:  CA4-702-02-25
2001 Clayton Road, Floor 2, Building B
Concord, CA 94520
Attention:        Gardelyn Jayme
                  Telephone:  (925)675-7184
                  Telecopier:  (888)969-9232
                  Electronic Mail:  gardelyn.o.jayme@bankofamerica.com

L/C ISSUER:

Standby Letters of Credit:

Bank of America, N.A.
Trade Operations-STANDBY LC
Mail Code: CA9-703-19-23
333 S. Beaudry Avenue, 19th Floor
Los Angeles, CA 90017-1466
Attention:        Bolivar Carrillo
                  Telephone:  (213)345-0089
                  Telecopier:  (213)345-6684
                  Electronic Mail:  Bolivar.carrillo@bankofamerica.com

                                 Schedule 10.02
                                     Page 2
<PAGE>
Commercial Letters of Credit

Bank of America, N.A.
Trade Operations-Commercial LC
Mail Code:  CA9-703-19-15
333 S. Beaudry Avenue, 19th Floor
Los Angeles, CA 90017-1466
Attention:        Frantz Bellevue
                  Telephone:  (213)345-6616
                  Telecopier:  (213)345-6691
                  Electronic Mail:  frantz.bellevue@bankofamerica.com

CANADIAN LENDER PAYMENT INSTRUCTIONS

Canadian Dollar

LVTS - Large Value Transaction System
Bank of America Canada
200 Front Street West

Toronto, Ontario M5V3L2
Attention:        Loans Department
                  Swift Code: BOFACATT
                  Transit #: 01312-241      Account #: 90083255
                  Ref: Trentonworks Limited

US Dollar

Bank of America International New York
335 Madison Avenue

New York, NY 10017
                  Swift Code: BOFAUS3N

                  ABA # 026009593
                  For the Account of: Bank of America, N.A., Canada Branch
                  Account #: 65502-01805
                  Swift Code: BOFACATT
                  Ref: Trentonworks Limited

                                 Schedule 10.02
                                     Page 3
<PAGE>
                                                                  SCHEDULE 10.06

                         PROCESSING AND RECORDATION FEES

         The Administrative Agent will charge to the appropriate Lender a
processing and recordation fee (an "Assignment Fee") in the amount of $2,500 for
each assignment; provided, however, that in the event of two or more concurrent
assignments to members of the same Assignee Group (which may be effected by a
suballocation of an assigned amount among members of such Assignee Group) or two
or more concurrent assignments by members of the same Assignee Group to a single
Eligible Assignee (or to an Eligible Assignee and members of its Assignee
Group), the Assignment Fee will be $2,500 plus the amount set forth below:

<TABLE>
<CAPTION>
                              TRANSACTION                                     ASSIGNMENT FEE
                              -----------                                     --------------

<S>                                                                           <C>
         First four concurrent assignments or suballocations                        -0-
         to members of an Assignee Group (or from members of
         an Assignee Group, as applicable)

         Each additional concurrent assignment or                                  $500
         suballocation to a member of such Assignee Group (or
         from a member of such Assignee Group, as applicable)
</TABLE>

                                 Schedule 10.06
                                     Page 1
<PAGE>
                                                                  SCHEDULE 11.01

                                                   LETTERS OF CREDIT

Domestic Manufacturing Operations Letters of Credit for up to $1,800,000.

                                 Schedule 11.01

<PAGE>

                                                                       EXHIBIT A

                          FORM OF COMMITTED LOAN NOTICE

                                                        Date: ___________, _____

To:   Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

      Reference is made to that certain Credit Agreement, dated as of June ____,
2005 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the "Agreement;" the terms defined therein being used
herein as therein defined), among The Greenbrier Companies, Inc., a Delaware
corporation (the "Company"), TrentonWorks Limited, a Nova Scotia corporation,
the Lenders from time to time party thereto, and Bank of America, N.A., as
Administrative Agent, L/C Issuer and Swing Line Lender.

      The Company hereby requests (select one):

      [ ] A Borrowing of Committed Loans    [ ] A conversion or continuation of
                                                Loans

      1.    On __________________________ (a Business Day).

      2.    In the amount of __________________________.

      3.    Comprised of __________________________.
                       [Type of Committed Loan requested]

      4.    In the following currency: ________________________

      5.    For Eurocurrency Rate Loans: with an Interest Period of __ months.

      The Committed Borrowing, if any, requested herein complies with the
provisos to the first sentence of Section 2.01 of the Agreement.

                                        THE GREENBRIER COMPANIES, INC., a
                                        Delaware corporation

                                        By:
                                           -------------------------------------

                                        Name:
                                             -----------------------------------

                                        Title:
                                              ----------------------------------

                                 Schedule 11.01
<PAGE>
                                                                       EXHIBIT B

                         FORM OF SWING LINE LOAN NOTICE

                                                        Date: ___________, _____

To:     Bank of America, N.A., as Swing Line Lender
        Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

      Reference is made to that certain Credit Agreement, dated as of June 29,
2005 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the "Agreement;" the terms defined therein being used
herein as therein defined), among The Greenbrier Companies, Inc., a Delaware
corporation (the "Company"), TrentonWorks Limited, a Nova Scotia corporation,
the Lenders from time to time party thereto, and Bank of America, N.A., as
Administrative Agent, L/C Issuer and Swing Line Lender.

      The undersigned hereby requests a Swing Line Loan:

      1. On __________________________(a Business Day).

      2. In the amount of $__________________________.

      The Swing Line Borrowing requested herein complies with the requirements
of the provisos to the first sentence of Section 2.04(a) of the Agreement.

                                        THE GREENBRIER COMPANIES, INC., a
                                        Delaware corporation

                                        By:
                                           -------------------------------------

                                        Name:
                                             -----------------------------------

                                        Title:
                                              ----------------------------------

                                     B - 1
                         Form of Swing Line Loan Notice
<PAGE>
                                                                       EXHIBIT C

                                  FORM OF NOTE

                                                                ________________

      FOR VALUE RECEIVED, the undersigned (the "Borrower") hereby promises to
pay to _____________________ or registered assigns (the "Lender"), in accordance
with the provisions of the Agreement (as hereinafter defined), the principal
amount of each Loan from time to time made by the Lender to the Borrower under
that certain Credit Agreement, dated as of June 29, 2005 (as amended, restated,
extended, supplemented or otherwise modified in writing from time to time, the
"Agreement;" the terms defined therein being used herein as therein defined),
among The Greenbrier Companies, Inc., a Delaware corporation, TrentonWorks
Limited, a Nova Scotia corporation, the Lenders from time to time party thereto,
and Bank of America, N.A., as Administrative Agent, L/C Issuer and Swing Line
Lender.

      The Borrower promises to pay interest on the unpaid principal amount of
each Loan from the date of such Loan until such principal amount is paid in
full, at such interest rates and at such times as provided in the Agreement. All
payments of principal and interest shall be made to the Administrative Agent for
the account of the Lender in the currency in which such Committed Loan was
denominated and in Same Day Funds at the Administrative Agent's Office for such
currency. If any amount is not paid in full when due hereunder, such unpaid
amount shall bear interest, to be paid upon demand, from the due date thereof
until the date of actual payment (and before as well as after judgment) computed
at the per annum rate set forth in the Agreement.

      This Note is one of the Notes referred to in the Agreement, is entitled to
the benefits thereof and may be prepaid in whole or in part subject to the terms
and conditions provided therein. This Note is also entitled to the benefits of
the Subsidiary Guaranty and is secured by the Collateral. Upon the occurrence
and continuation of one or more of the Events of Default specified in the
Agreement, all amounts then remaining unpaid on this Note shall become, or may
be declared to be, immediately due and payable all as provided in the Agreement.
Loans made by the Lender shall be evidenced by one or more loan accounts or
records maintained by the Lender in the ordinary course of business. The Lender
may also attach schedules to this Note and endorse thereon the date, amount,
currency and maturity of its Loans and payments with respect thereto.

      The Borrower, for itself, its successors and assigns, hereby waives
diligence, presentment, protest and demand and notice of protest, demand,
dishonor and non-payment of this Note.

                                      C-1
                                  Form of Note
<PAGE>
      THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF OREGON.

                                        THE GREENBRIER COMPANIES, INC., a
                                        Delaware corporation

                                        By:
                                           -------------------------------------

                                        Name:
                                             -----------------------------------

                                        Title:
                                              ----------------------------------

                                      C-2
                                  Form of Note
<PAGE>
                     LOANS AND PAYMENTS WITH RESPECT THERETO

<TABLE>
<CAPTION>
                                                                           AMOUNT OF        OUTSTANDING
                                      CURRENCY AND                        PRINCIPAL OR       PRINCIPAL
                    TYPE OF LOAN     AMOUNT OF LOAN   END OF INTEREST    INTEREST PAID      BALANCE THIS
    DATE                MADE              MADE             PERIOD          THIS DATE            DATE        NOTATION MADE BY
-----------         ------------     --------------   ---------------    -------------      ------------    ----------------
<S>                 <C>              <C>              <C>                <C>                <C>             <C>

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

                                      C-3
                                  Form of Note
<PAGE>
                                                                       EXHIBIT D

                         FORM OF COMPLIANCE CERTIFICATE

                                          Financial Statement Date: ___________,

To:   Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

      Reference is made to that certain Credit Agreement, dated as of June 29,
2005, (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the "Agreement;" the terms defined therein being used
herein as therein defined), among The Greenbrier Companies, Inc., a Delaware
corporation (the "Company"), TrentonWorks Limited, a Nova Scotia corporation,
the Lenders from time to time party thereto, and Bank of America, N.A., as
Administrative Agent, L/C Issuer and Swing Line Lender.

      The undersigned Responsible Officer hereby certifies as of the date hereof
that he/she is the __________________ of the Company, and that, as such, he/she
is authorized to execute and deliver this Certificate to the Administrative
Agent on the behalf of the Company, and that:

      [Use following paragraph 1 for fiscal YEAR-END financial statements]

      1. Attached hereto as Schedule 1 are the year-end audited financial
statements required by Section 6.01(a) of the Agreement for the fiscal year of
the Company ended as of the above date, together with the report and opinion of
an independent certified public accountant required by such section.

     [Use following paragraph 1 for fiscal QUARTER-END financial statements]

      1. Attached hereto as Schedule 1 are the unaudited financial statements
required by Section 6.01(b) of the Agreement for the fiscal quarter of the
Company ended as of the above date. Such financial statements fairly present the
financial condition, results of operations and cash flows of the Company and its
Subsidiaries in accordance with GAAP as at such date and for such period,
subject only to normal year-end audit adjustments and the absence of footnotes.

      2. The undersigned has reviewed and is familiar with the terms of the
Agreement and has made, or has caused to be made under his/her supervision, a
reasonable review of the transactions and condition (financial or otherwise) of
the Company during the accounting period covered by the attached financial
statements.

      3. A reasonable review of the activities of the Company during such fiscal
period has been made under the supervision of the undersigned with a view to
determining whether during such fiscal period the Company performed and observed
all its Obligations under the Loan Documents, and

                                  [SELECT ONE:]

                                     D - 1
                         Form of Compliance Certificate
<PAGE>
      [TO THE BEST KNOWLEDGE OF THE UNDERSIGNED DURING SUCH FISCAL PERIOD, THE
COMPANY PERFORMED AND OBSERVED EACH COVENANT AND CONDITION OF THE LOAN DOCUMENTS
APPLICABLE TO IT, AND NO DEFAULT HAS OCCURRED AND IS CONTINUING.]

                                     --OR--

      [THE FOLLOWING COVENANTS OR CONDITIONS HAVE NOT BEEN PERFORMED OR OBSERVED
AND THE FOLLOWING IS A LIST OF EACH SUCH DEFAULT AND ITS NATURE AND STATUS:]

      4. The representations and warranties of (i) the Borrowers contained in
Article V of the Agreement and (ii) each Loan Party contained in each other Loan
Document or in any document furnished at any time under or in connection with
the Loan Documents, are true and correct in all material respects on and as of
the date hereof, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct
in all material respects as of such earlier date, and except that for purposes
of this Compliance Certificate, the representations and warranties contained in
subsections (a) and (b) of Section 5.05 of the Agreement shall be deemed to
refer to the most recent statements furnished pursuant to clauses (a) and (b),
respectively, of Section 6.01 of the Agreement, including the statements in
connection with which this Compliance Certificate is delivered.

      5. The financial covenant analyses and information set forth on Schedule 2
attached hereto are true and accurate on and as of the date of this Certificate.

      IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
____________ , ___________.

                                        THE GREENBRIER COMPANIES, INC., A
                                        DELAWARE CORPORATION

                                        By:
                                            ------------------------------------

                                        Name:
                                              ----------------------------------

                                        Title:
                                               ---------------------------------

                                     D - 2
                         Form of Compliance Certificate
<PAGE>
        For the Quarter/Year ended ___________________("Statement Date")

                                   SCHEDULE 2

                          to the Compliance Certificate

                                  ($ in 000's)

<TABLE>
<S>                                                                             <C>
I.    SECTION 7.11(A) - CONSOLIDATED TANGIBLE NET WORTH.

      A.    Actual Consolidated Tangible Net Worth as of May 31,
            2005:

            1.    Stockholders' Equity:                                         $
                                                                                 --------

            2.    Intangible Assets:                                            $
                                                                                 --------

            3.    Consolidated Tangible Net Worth (Line I.A1
                  less Line I.A.2 x 80%):                                       $
                                                                                 --------

      B.    50% of Consolidated Net Income for each full
            fiscal quarter ending after May 31, 2005 (no
            reduction for losses):                                              $
                                                                                 --------

      C.    50% of any increase in Stockholders' Equity
            after date of Agreement from issuance and
            sale of Equity Interests (including from
            conversion of debt securities):                                     $
                                                                                 --------

      D.    Minimum required Consolidated Tangible Net Worth
            (Lines I.A + I.B + I.C):                                            $
                                                                                 --------

II.   SECTION 7.11 (B) - CONSOLIDATED FIXED CHARGE COVERAGE
      RATIO.

      A.    Consolidated EBITDA for four consecutive fiscal
            quarters ending on above date ("Subject Period"):

            1.    Consolidated Net Income for Subject Period:                   $
                                                                                 --------

            2.    Consolidated Interest Charges for Subject
                  Period:                                                       $
                                                                                 --------

            3.    Provision for income taxes for Subject Period:                $
                                                                                 --------

            4.    Depreciation expenses for Subject Period:                     $
                                                                                 --------

            5.    Amortization expenses for Subject Period:                     $
                                                                                 --------

            6.    Non-recurring non-cash reductions of
                  Consolidated Net Income for Subject Period:                   $
                                                                                 --------

            7.    Income tax credits for Subject Period:                        $
                                                                                 --------

            8.    Non-cash additions to Consolidated Net Income
                  for Subject Period:                                           $
                                                                                 --------

            9.    Consolidated EBITDA (Lines II.A.1 + 2 + 3 + 4
                  + 5 + 6 - 7 - 8):                                             $
                                                                                 --------

      B.    Consolidated rent expense (including option lease
            expense) for Subject Period:                                        $
                                                                                 --------

      C.    Consolidated Interest Charges for Subject Period:                   $
                                                                                 --------
</TABLE>

                                 SCHEDULE 2 - 1
                      Schedule 2 to Compliance Certificate
<PAGE>
<TABLE>
<S>                                                                             <C>
      D.    Consolidated Interest Coverage Ratio (Line II.A.9 +
            Line II.B / Line II.C + Line II.B):                                             to 1.00
                                                                                -----------
                         Minimum required: 1.75 to 1.00

III.  SECTION 7.11 (C) - CONSOLIDATED CAPITALIZATION RATIO.

      A.    Consolidated Funded Indebtedness at Statement Date:                 $
                                                                                 --------

      B.    Stockholders' Equity at Statement Date:                             $
                                                                                 --------

      C.    Consolidated Capitalization Ratio (Line III.A / Line
            III.A + Line III.B):                                                            to 1.00
                                                                                -----------
                         Maximum permitted: .675 to 1.00
</TABLE>

                                 SCHEDULE 2 - 2
                      Schedule 2 to Compliance Certificate
<PAGE>
                                                                       EXHIBIT E

                            ASSIGNMENT AND ASSUMPTION

      This Assignment and Assumption (this "Assignment and Assumption") is dated
as of the Effective Date set forth below and is entered into by and between
[Insert name of Assignor] (the "Assignor") and [Insert name of Assignee] (the
"Assignee"). Capitalized terms used but not defined herein shall have the
meanings given to them in the Credit Agreement identified below (the "Credit
Agreement"), receipt of a copy of which is hereby acknowledged by the Assignee.
The Standard Terms and Conditions set forth in Annex 1 attached hereto are
hereby agreed to and incorporated herein by reference and made a part of this
Assignment and Assumption as if set forth herein in full.

      For an agreed consideration, the Assignor hereby irrevocably sells and
assigns to the Assignee, and the Assignee hereby irrevocably purchases from the
Assignor and assumes and agrees to perform, subject to and in accordance with
the Standard Terms and Conditions and the Credit Agreement, as of the Effective
Date inserted by the Administrative Agent as contemplated below (i) all of the
Assignor's rights and obligations as a Lender under the Credit Agreement and any
other documents or instruments delivered pursuant thereto to the extent related
to the amount and percentage interest identified below of all of such
outstanding rights and obligations of the Assignor under the respective
facilities identified below (including, without limitation, the Letters of
Credit and the Swing Line Loans included in such facilities) and (ii) to the
extent permitted to be assigned under applicable law, all claims, suits, causes
of action and any other right of the Assignor (in its capacity as a Lender)
against any Person, whether known or unknown, arising under or in connection
with the Credit Agreement, any other documents or instruments delivered pursuant
thereto or the loan transactions governed thereby or in any way based on or
related to any of the foregoing, including, but not limited to, contract claims,
tort claims, malpractice claims, statutory claims and all other claims at law or
in equity related to the rights and obligations sold and assigned pursuant to
clause (i) above (the rights and obligations sold and assigned pursuant to
clauses (i) and (ii) above being referred to herein collectively as, the
"Assigned Interest"). Such sale and assignment is without recourse to the
Assignor and, except as expressly provided in this Assignment and Assumption,
without representation or warranty by the Assignor.

1.    Assignor: ______________________________

2.    Assignee: ______________________________ [and is an Affiliate/Approved
      Fund of [identify Lender]]

3.    Borrower(s): ______________________________

4.    Administrative Agent: Bank of America, N.A., as the administrative agent
      under the Credit Agreement

5.    Credit Agreement: Credit Agreement, dated as of [___________, _____],
      among [____________________________], the Lenders from time to time party
      thereto, and Bank of America, N.A., as Administrative Agent, L/C Issuer
      and Swing Line Lender

                                     E - 1
                            Assignment and Assumption
<PAGE>
6.    Assigned Interest:

<TABLE>
<CAPTION>
                                    Aggregate
                                    Amount of                   Amount of                 Percentage
                                    Commitment                 Commitment                 Assigned of
    Facility Assigned            for all Lenders*               Assigned*                 Commitment             CUSIP Number
    -----------------            ---------------                --------                  ----------             ------------
<S>                             <C>                         <C>                         <C>                      <C>
                                $                           $                                         %
      -------------             -----------------           -----------------           --------------
                                $                           $                                         %
      -------------             -----------------           -----------------           --------------
                                $                           $                                         %
      -------------             -----------------           -----------------           --------------
</TABLE>

[7.   Trade Date: __________________]

Effective Date: __________________, 20__ [TO BE INSERTED BY ADMINISTRATIVE AGENT
AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.]

      The terms set forth in this Assignment and Assumption are hereby agreed
to:

                                        ASSIGNOR
                                        [NAME OF ASSIGNOR]

                                        By: _____________________________
                                            Title:

                                        ASSIGNEE
                                        [NAME OF ASSIGNEE]

                                        By: _____________________________
                                            Title:
Consented to and Accepted:

BANK OF AMERICA, N.A., as
  Administrative Agent

By: _________________________________
    Title:

Consented to:

[COMPANY]

By: _________________________________
    Title:

                                     E - 2
                            Assignment and Assumption
<PAGE>
                                            ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

                        STANDARD TERMS AND CONDITIONS FOR

                            ASSIGNMENT AND ASSUMPTION

            1. Representations and Warranties.

            1.1. Assignor. The Assignor (a) represents and warrants that (i) it
is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and
(iii) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect
to (i) any statements, warranties or representations made in or in connection
with the Credit Agreement or any other Loan Document, (ii) the execution,
legality, validity, enforceability, genuineness, sufficiency or value of the
Loan Documents or any collateral thereunder, (iii) the financial condition of
the Company, any of its Subsidiaries or Affiliates or any other Person obligated
in respect of any Loan Document or (iv) the performance or observance by the
Company, any of its Subsidiaries or Affiliates or any other Person of any of
their respective obligations under any Loan Document.

            1.2. Assignee. The Assignee (a) represents and warrants that (i) it
has full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and Assumption and to consummate the transactions
contemplated hereby and to become a Lender under the Credit Agreement, (ii) it
meets all requirements of an Eligible Assignee under the Credit Agreement
(subject to receipt of such consents as may be required under the Credit
Agreement), (iii) from and after the Effective Date, it shall be bound by the
provisions of the Credit Agreement as a Lender thereunder and, to the extent of
the Assigned Interest, shall have the obligations of a Lender thereunder, (iv)
it has received a copy of the Credit Agreement, together with copies of the most
recent financial statements delivered pursuant to Section __ thereof, as
applicable, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Assumption and to purchase the Assigned Interest on the basis of
which it has made such analysis and decision independently and without reliance
on the Administrative Agent or any other Lender, and (v) if it is a Foreign
Lender, attached hereto is any documentation required to be delivered by it
pursuant to the terms of the Credit Agreement, duly completed and executed by
the Assignee; and (b) agrees that (i) it will, independently and without
reliance on the Administrative Agent, the Assignor or any other Lender, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

            2. Payments. From and after the Effective Date, the Administrative
Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for
amounts which have accrued to but excluding the Effective Date and to the
Assignee for amounts which have accrued from and after the Effective Date.

                                   ANNEX 1 - 1
                       Annex to Assignment and Assumption
<PAGE>
            3. General Provisions. This Assignment and Assumption shall be
binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns. This Assignment and Assumption may be
executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a
manually executed counterpart of this Assignment and Assumption. This Assignment
and Assumption shall be governed by, and construed in accordance with, the law
of the State of Oregon. Borrowers are intended beneficiaries of this Agreement.

                                   ANNEX 1 - 2
                       Annex to Assignment and Assumption
<PAGE>
                                                                       EXHIBIT F

                           FORM OF SUBSIDIARY GUARANTY

                                     F - 1
                           Form of Subsidiary Guaranty
<PAGE>
                                                                       EXHIBIT G

                                 OPINION MATTERS

      The matters contained in the following Sections of the Credit Agreement
should be covered by the legal opinion on behalf of each Borrower:

      -     Section 5.01(a), (b) and (c)

      -     Section 5.02

      -     Section 5.03

      -     Section 5.04

      -     Section 5.06

      -     Section 5.14(b)

                                      G - 1
                                 Opinion Matters
<PAGE>
                                                                       EXHIBIT H

                           BORROWING BASE CERTIFICATE

THE GREENBRIER COMPANIES,
INC.

BORROWING BASE CERTIFICATE
CREDIT AGREEMENT DATED AS OF JUNE 29, 2005
BORROWING BASE DATA AND COMPUTATIONS AS OF __________, 200__

<TABLE>
<CAPTION>
                                                                                                        CONTRIBUTION TO
                                                                                                         BORROWING BASE
                                                                                                        (TOTAL AMOUNT X
         TOTAL ASSET CATEGORY          AMOUNT(US$)              ADVANCE RATE                             ADVANCE RATE)
         --------------------          -----------              ------------                             -------------
<S>                                    <C>             <C>                                               <C>
Perfected Lease Assets                                                                          90%      $         --
Unperfected Lease Assets                                                                        60%      $         --   (A)
Eligible Accounts                                                                               80%      $         --
Eligible Inventory                                                                              50%      $         --
Eligible Property, Plant & Equipment                                                            50%      $         --

                                                                     Subtotal - U.S. Borrowing Base      $         --
                                                                              U.S. Revolver Ceiling      $125,000,000
                                                       Lesser of Subtotal and U.S. Revolver Ceiling      $         --
                                                                                    U.S. Borrowings
                                                                             U.S. Letters of Credit
                                                                        U.S. Borrowing Availability      $         --
                                                                         Unused U.S. Borrowing Base      $         --
</TABLE>

(A) Amount cannot be greater than $10,000,000

                                      H - 1
                           Borrowing Base Certificate
<PAGE>
TRENTONWORKS LTD.
BORROWING BASE CERTIFICATE
CREDIT AGREEMENT DATED AS OF JUNE 29, 2005
BORROWING BASE DATA AND COMPUTATIONS AS OF __________, 200__

<TABLE>
<CAPTION>
                                                                                                  CONTRIBUTION TO
                                                                                                  BORROWING BASE
                                                                                                  (TOTAL AMOUNT X
         TOTAL ASSET CATEGORY          AMOUNT(CAN$)             ADVANCE RATE                      ADVANCE RATE)
         --------------------          ------------             ------------                      -------------
<S>                                    <C>             <C>                                        <C>
Eligible Accounts                                                                        80%      $         --
Eligible Inventory                                                                       50%      $         --

Eligible Property, Plant & Equipment   $     --                                          50%      $         --
                                                                                    Subtotal      $         --

                                                          Amount of unused US Borrowing Base
                                                                         (converted to CAN$)      $         --
                                                           New Subtotal - Canadian Borrowing
                                                                                        Base      $         --

                                                                   Canadian Revolver Ceiling      $ 30,000,000
                                                       Lesser of Canadian Borrowing Base and
                                                                   Canadian Revolver Ceiling      $         --

                                                            Canadian Borrowings & Overdrafts
                                                                  Canadian Letters of Credit

                                                             Canadian Borrowing Availability      $         --

USD/CAD exchange rate as of
  certificate date                          0.85
</TABLE>

                                      H - 2
                           Borrowing Base Certificate
<PAGE>
Perfected Lease Assets                 =   Equipment on Op Leases & Investment
                                           in direct finance leases
Unperfected Lease Assets1              =   What is not perfected under Equipment
                                           on Op Leases & Investment in direct
                                           finance leases
Eligible Accounts                      =   Accounts and notes receivable
Eligible Inventory                     =   Inventories
Eligible Property, Plant & Equipment   =   PP&E

                                      H - 3
                           Borrowing Base Certificate

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