Document:

Exhibit
4.3

 

TRUST AGREEMENT

 

THIS TRUST AGREEMENT, dated as of [                          ],
2005, is made by and among Fieldstone Mortgage Investment Corporation, a
Maryland corporation, as depositor (the “Depositor”), [                          ],
a [                          ],
as owner trustee (the “Owner Trustee”) and is acknowledged and agreed as
described herein by Fieldstone Investment Corporation, a Maryland corporation (“Fieldstone”).  The Depositor and the Owner Trustee hereby
agree as follows:

 

1.                                       The trust created hereby shall
be known as Fieldstone Mortgage Investment Trust, Series 2005-[    ]
(the “Trust”), in which name the Owner Trustee may conduct the business of the
Trust, make and execute contracts, and sue and be sued.

 

2.                                       The Depositor hereby assigns,
transfers, conveys and sets over to the Owner Trustee the sum of $1.  The Owner Trustee hereby acknowledges receipt
of such amount in trust from the Depositor, which amount shall constitute the
initial trust estate.  The Owner Trustee
hereby declares that it will hold the trust estate in trust for the
Depositor.  It is the intention of the
parties hereto that the Trust created hereby constitute a statutory trust under
Chapter 38 of Title 12 of the Delaware Code, 12 Del. C. § 3801 et
seq.  (the “Statutory Trust
Statute”) and that this document constitute the governing instrument of the
Trust.  The Owner Trustee is hereby
authorized and directed to execute and file a certificate of trust with the
Delaware Secretary of State in the form attached hereto as Exhibit A.

 

3.                                       (a)                                  Except as otherwise expressly
required in Section 2 of this Trust Agreement, the Owner Trustee shall not
have any duty or liability with respect to the administration of the Trust, the
investment of the Trust’s property or the payment of dividends or other
distributions of income or principal to the Trust’s beneficiaries, and no
implied obligations shall be inferred from this Trust Agreement on the part of
the Owner Trustee.  The Owner Trustee is
authorized and directed to enter into such other documents and take such other
action as the Depositor specifically directs in written instructions delivered
to the Owner Trustee, provided, however, the Owner Trustee shall not be
required to take any action if the Owner Trustee shall determine or shall be
advised by counsel that such action is likely to result in personal liability
or is contrary to applicable law or any agreement to which the Owner Trustee is
a party.  The Owner Trustee shall not be
liable for the acts or omissions of the Depositor or any other person who acts
on behalf of the Trust nor shall the Owner Trustee be liable for any act or
omission by the Owner Trustee in good faith in accordance with the directions
of the Depositor.

 

(b)                                 The Owner Trustee accepts the
trusts hereby created and agrees to perform its duties hereunder with respect
to the same but only upon the terms of this Trust Agreement.  The Owner Trustee shall not be personally
liable under any circumstances, except for its own willful misconduct or gross
negligence.  In particular, but not by
way of limitation:

 

A.                                   The Owner Trustee shall not be
personally liable for any error of judgment made in good faith by any officer
or employee of the Owner Trustee;

 

 

B.                                     No provision of this Trust
Agreement shall require the Owner Trustee to expend or risk its personal funds
or otherwise incur any financial liability in the performance of its rights or
duties hereunder, if the Owner Trustee shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured or provided to it;

 

C.                                     Under no circumstance shall the
Owner Trustee be personally liable for any representation, warranty, covenant
or indebtedness of the Trust;

 

D.                                    The Owner Trustee shall not be
personally responsible for or in respect of the genuineness, form or value of
the Trust property, the validity or sufficiency of this Trust Agreement or for
the due execution hereof by the Depositor;

 

E.                                      In the event the Owner Trustee
is unsure as to the course of action to be taken by it hereunder, the Owner
Trustee may request instructions from the Depositor and to the extent the Owner
Trustee follows such instructions in good faith the Owner Trustee shall not be
liable to any person.  In the event that
no instructions are provided within the time requested by the Owner Trustee,
the Owner Trustee shall have no duty or liability for its failure to take any
action or for any action it takes in good faith;

 

F.                                      All funds deposited with the Owner
Trustee hereunder may be held in a non-interest bearing trust account and the
Owner Trustee shall not be liable for any interest thereon or for any loss as a
result of the investment thereof at the direction of the Depositor;

 

G.                                     To the extent that, at law or in
equity, the Owner Trustee has duties and liabilities relating thereto to the
Depositor or the Trust, the Depositor agrees that such duties and liabilities
are replaced by the terms of this Trust Agreement.

 

H.                                    The Owner Trustee shall incur no
liability to anyone in acting in good faith upon any document believed by the
Owner Trustee to be genuine and believed by the Owner Trustee to be signed by
the proper party or parties.  The Owner
Trustee may accept a certified copy of a resolution of the board of directors
or other governing body of any entity as conclusive evidence that such
resolution has been duly adopted by such body and that the same is in full
force and effect.  As to any fact or
matter the manner of ascertainment of which is not specifically prescribed
herein, the Owner Trustee may for all purposes hereof rely on a certificate,
signed by the Depositor, as to such fact or matter, and such certificate shall
constitute full protection to the Owner Trustee for any action taken or omitted
to be taken by it in good faith in reliance thereon.

 

I.                                         In the exercise or
administration of the trusts hereunder, the Owner Trustee (i) may act directly
or, at the expense of the Trust, through agents or attorneys, and the Owner
Trustee shall not be liable for the default or misconduct of such attorneys or
agents if such agents and attorneys shall have been selected by the Owner
Trustee in good faith, and (ii) may, at the expense of the Trust, consult with
counsel, accountants and other experts, and it shall not be liable for anything
done, suffered or omitted in good faith by it in accordance with the advice or
opinion of any such counsel, accountants or other experts.

 

2

 

J.                                        Except as expressly provided in this
Section 3, in accepting and performing the trusts hereby created, the
Owner Trustee acts solely as Owner Trustee hereunder and not in its individual
capacity, and all persons having any claim against the Owner Trustee by reason
of the transactions contemplated by this Trust Agreement shall look only to the
Trust’s property for payment or satisfaction thereof.

 

4.                                       For good and valuable
consideration, receipt of which is hereby acknowledged, Fieldstone hereby
agrees to (i) compensate the Owner Trustee for its services hereunder in an
amount separately agreed to by Fieldstone and the Owner Trustee, (ii) reimburse
the Owner Trustee for all reasonable expenses not otherwise reimbursed by the
Trust (including reasonable fees and expenses of counsel and other experts) and
(iii) indemnify, defend and hold harmless the Owner Trustee and any of the
officers, directors, employees and agents of the Owner Trustee (each an “Indemnified
Person”) from and against any and all losses, damages, liabilities, claims,
actions, suits, costs, expenses, disbursements (including reasonable fees and
expenses of its counsel), taxes and penalties of any kind and nature whatsoever
(collectively, “Expenses”), to the extent that such Expenses arise out of or
are imposed upon or asserted at any time against such Indemnified Person with
respect to the performance of this Trust Agreement, the creation, operation or
termination of the Trust or the transactions contemplated hereby; provided,
however, that Fieldstone shall not be required to indemnify any
Indemnified Person for any Expenses which are a result of the willful
misconduct or gross negligence of such Indemnified Person.  In the event of any claim, action or
proceeding for which indemnity will be sought pursuant to this Section, the Indemnified
Party’s choice of legal counsel shall be subject to the approval of Fieldstone,
which approval shall not be unreasonably withheld.  The obligations of Fieldstone under this Section 4
shall survive the termination of this Trust Agreement.

 

5.                                       The Owner Trustee may resign
upon thirty days prior notice to the Depositor. 
If no successor has been appointed within such thirty day period, the
Owner Trustee may, at the expense of the Trust, petition a court of competent
jurisdiction to appoint a successor trustee.

 

6.                                       Upon written instructions from
the Depositor, the Owner Trustee shall dissolve and terminate the Trust and
file in accordance with 12 Del.C. § 3810 a Certificate of
Cancellation with the Delaware Secretary of Sate.

 

7.                                       This Trust Agreement constitutes
the entire agreement between the parties hereto with respect to the subject
matter hereof, and supersedes all prior agreements and understandings between
the parties.

 

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

 

9.                                       This Trust Agreement may be
executed in one or more counterparts, each of which when so executed shall be
an original and all of which when taken together shall constitute but one and
the same instrument.

 

3

 

10.                                 This Trust Agreement may be
amended and restated by the parties hereto as necessary to provide for the
operation of the Trust; provided, however, that the Owner Trustee shall not be
required to enter into any amendment hereto which adversely affects the rights,
duties or immunities of the Owner Trustee.

 

[signature page follows]

 

4

 

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

 

	
   

  	
  FIELDSTONE MORTGAGE INVESTMENT

  
	
   

  	
  CORPORATION,

  
	
   

  	
  as Depositor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [

  	
   

  	
  ],

  
	
   

  	
  as Owner Trustee

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
						

 

 

Acknowledged and Agreed, solely

for purposes of Section 4:

 

	
  FIELDSTONE INVESTMENT CORPORATION

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

5Exhibit
4.4

 

 

AMENDED AND RESTATED TRUST AGREEMENT

 

 

among

 

 

FIELDSTONE MORTGAGE INVESTMENT CORPORATION,

as Depositor,

 

 

[                                                   ],

as Owner Trustee

 

 

and

 

 

[           
                                       ],

as Trust Administrator

 

 

Dated as of [                    ],
2005

 

 

Fieldstone Mortgage Investment Trust, Series
2005-[    ]

Mortgage-Backed Notes

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I DEFINITIONS

  
	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
  Definitions

  	
   

  
	
  Section 1.02.

  	
  Other Definitional Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II ORGANIZATION

  
	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
  Name

  	
   

  
	
  Section 2.02.

  	
  Office

  	
   

  
	
  Section 2.03.

  	
  Purpose and Powers

  	
   

  
	
  Section 2.04.

  	
  Appointment of the Owner Trustee

  	
   

  
	
  Section 2.05.

  	
  Initial Capital Contribution; Declaration
  of Trust

  	
   

  
	
  Section 2.06.

  	
  Issuance of Initial Certificates

  	
   

  
	
  Section 2.07.

  	
  Liability of the Ownership Certificate
  Holder

  	
   

  
	
  Section 2.08.

  	
  Situs of Trust

  	
   

  
	
  Section 2.09.

  	
  Title to Trust Property

  	
   

  
	
  Section 2.10.

  	
  Representations and Warranties of the
  Depositor

  	
   

  
	
  Section 2.11.

  	
  Tax Treatment

  	
   

  
	
  Section 2.12.

  	
  Investment Company

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III THE CERTIFICATES AND
  TRANSFERS OF INTERESTS

  
	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
  The Certificates

  	
   

  
	
  Section 3.02.

  	
  Execution, Authentication and Delivery of
  the Certificates

  	
   

  
	
  Section 3.03.

  	
  Registration of and Limitations on
  Transfers and Exchanges of the Certificates

  	
   

  
	
  Section 3.04.

  	
  Lost, Stolen, Mutilated or Destroyed
  Certificate

  	
   

  
	
  Section 3.05.

  	
  Persons Deemed Certificateholders

  	
   

  
	
  Section 3.06.

  	
  Access to List of Certificateholders’ Names
  and Addresses

  	
   

  
	
  Section 3.07.

  	
  [Reserved]

  	
   

  
	
  Section 3.08.

  	
  Maintenance of Office or Agency

  	
   

  
	
  Section 3.09.

  	
  Certificate Paying Agent

  	
   

  
	
  Section 3.10.

  	
  Initial Beneficiary

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV APPLICATION OF TRUST FUNDS;
  CERTAIN DUTIES

  
	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
  Collection Account

  	
   

  
	
  Section 4.02.

  	
  Application of Trust Funds

  	
   

  
	
  Section 4.03.

  	
  Method of Payment

  	
   

  
	
  Section 4.04.

  	
  [Reserved]

  	
   

  
	
  Section 4.05.

  	
  Segregation of Moneys; No Interest

  	
   

  

 

i

 

	
  ARTICLE V AUTHORITY AND DUTIES OF THE
  OWNER TRUSTEE; ACTION BY CERTIFICATEHOLDERS

  
	
   

  	
   

  	
   

  
	
  Section 5.01.

  	
  General Authority

  	
   

  
	
  Section 5.02.

  	
  General Duties

  	
   

  
	
  Section 5.03.

  	
  Action Upon Instruction

  	
   

  
	
  Section 5.04.

  	
  No Duties Except as Specified under
  Specified Documents or in Instructions

  	
   

  
	
  Section 5.05.

  	
  Restrictions

  	
   

  
	
  Section 5.06.

  	
  Prior Notice to the Certificateholders with
  Respect to Certain Matters

  	
   

  
	
  Section 5.07.

  	
  Action by the Holder with Respect to
  Bankruptcy

  	
   

  
	
  Section 5.08.

  	
  Restrictions on the Ownership Certificate
  Holder’s Power

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI CONCERNING THE OWNER
  TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
  Acceptance of Trusts and Duties

  	
   

  
	
  Section 6.02.

  	
  Furnishing of Documents

  	
   

  
	
  Section 6.03.

  	
  Books and Records

  	
   

  
	
  Section 6.04.

  	
  Representations and Warranties

  	
   

  
	
  Section 6.05.

  	
  Reliance; Advice of Counsel

  	
   

  
	
  Section 6.06.

  	
  Not Acting in Individual Capacity

  	
   

  
	
  Section 6.07.

  	
  Owner Trustee Not Liable for Certificates or Collateral

  	
   

  
	
  Section 6.08.

  	
  Owner Trustee May Own Notes

  	
   

  
	
  Section 6.09.

  	
  Licenses

  	
   

  
	
  Section 6.10.

  	
  Doing Business in Other Jurisdictions

  	
   

  
	
  Section 6.11.

  	
  Sarbanes-Oxley Act Certification

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII INDEMNIFICATION AND
  COMPENSATION

  
	
   

  	
   

  	
   

  
	
  Section 7.01.

  	
  Trust Expenses

  	
   

  
	
  Section 7.02.

  	
  Indemnification

  	
   

  
	
  Section 7.03.

  	
  Compensation

  	
   

  
	
  Section 7.04.

  	
  Lien on Trust Estate

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII TERMINATION OF AGREEMENT

  
	
   

  	
   

  	
   

  
	
  Section 8.01.

  	
  Termination of Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX SUCCESSOR OWNER TRUSTEES
  AND ADDITIONAL OWNER TRUSTEES

  
	
   

  	
   

  	
   

  
	
  Section 9.01.

  	
  Eligibility Requirements for Owner Trustee

  	
   

  
	
  Section 9.02.

  	
  Resignation or Removal of Owner Trustee

  	
   

  
	
  Section 9.03.

  	
  Successor Owner Trustee

  	
   

  
	
  Section 9.04.

  	
  Merger or Consolidation of Owner Trustee

  	
   

  
	
  Section 9.05.

  	
  Appointment of Co-Trustee or Separate Trustee

  	
   

  

 

ii

 

	
  ARTICLE X MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 10.01.

  	
  Supplements and Amendments

  	
   

  
	
  Section 10.02.

  	
  No Legal Title to Trust Estate in Certificateholders

  	
   

  
	
  Section 10.03.

  	
  Pledge of Collateral by Owner Trustee is Binding

  	
   

  
	
  Section 10.04.

  	
  Limitations on Rights of Others

  	
   

  
	
  Section 10.05.

  	
  Notices

  	
   

  
	
  Section 10.06.

  	
  Severability

  	
   

  
	
  Section 10.07.

  	
  Separate Counterparts

  	
   

  
	
  Section 10.08.

  	
  Successors and Assigns

  	
   

  
	
  Section 10.09.

  	
  Headings

  	
   

  
	
  Section 10.10.

  	
  Governing Law

  	
   

  
	
  Section 10.11.

  	
  No Petition

  	
   

  
	
  Section 10.12.

  	
  No Recourse

  	
   

  
	
  Section 10.13.

  	
  Customer Identification

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI OFFICERS

  
	
   

  	
   

  	
   

  
	
  Section 11.01.

  	
  Appointment of Officers

  	
   

  
	
  Section 11.02.

  	
  Officers to Provide Information to the Owner Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  Forms of Certificates

  	
   

  
	
  Exhibit B

  	
  [Reserved]

  	
   

  
	
  Exhibit C

  	
  Form of Certificate of Trust

  	
   

  
	
  Exhibit D-1

  	
  Form of Rule 144A Investment Letter

  	
   

  
	
  Exhibit D-2

  	
  Form of Non-Rule 144A Investment Letter

  	
   

  
	
  Exhibit E

  	
  Form of Certificate of Beneficial Owner

  	
   

  
	
  Exhibit F

  	
  Form of Representation and Warranty
  Regarding Transferee’s Status as a REIT or Qualified REIT Subsidiary

  	
   

  

 

iii

 

This TRUST AGREEMENT, dated as of [                            ],
2005, is by and among FIELDSTONE MORTGAGE INVESTMENT CORPORATION, a Maryland
corporation (the “Depositor”), [                                                ],
a [                          ],
as Owner Trustee (the “Owner Trustee”), and [                                                ],
a [                            ],
as Trust Administrator (the “Trust Administrator”).

 

WHEREAS, pursuant to the Transfer and Servicing Agreement, the Depositor
intends to sell, transfer and assign to a Delaware statutory trust created
hereunder certain Mortgage Loans and related assets (collectively, the “Collateral”),
which statutory trust would then pledge such Collateral under an indenture in
order to secure the issuance of its Mortgage-Backed Notes, Series 2005-[    ]
(the “Securities”), the net proceeds of which would be applied toward the
purchase of the Collateral.

 

WHEREAS, the Depositor and the Owner Trustee entered into a Trust
Agreement dated [                            ],
2005 (the “Original Trust Agreement”), and filed with the Secretary of State of
the State of Delaware a Certificate of Trust on [                            ],
2005, creating Fieldstone Mortgage Investment Trust, Series 2005-[    ]
(the “Trust”).

 

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

 

NOW THEREFORE, in consideration of the premises and mutual agreements
herein contained, the parties hereto hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.01.                             Definitions.  For all purposes of this Agreement, the
following terms shall have the meanings set forth below.

 

Actual Knowledge:  With respect to (i) the Owner Trustee, any
officer within the Corporate Trust Office of the Owner Trustee responsible for administering
the Trust hereunder, or under the Operative Agreements, who has actual
knowledge of an action taken or an action not taken with regard to the
Trust.  Actions taken or actions not
taken of which the Owner Trustee should have had knowledge, or has constructive
knowledge, do not meet the definition of Actual Knowledge hereunder.  With respect to the Trust Administrator, any
Responsible Officer of the Trust Administrator who has actual knowledge of an
action taken or an action not taken with regard to the Trust.  Actions taken or actions not taken of which
the Trust Administrator should have had knowledge, or has constructive
knowledge, do not meet the definition of Actual Knowledge hereunder.

 

Agreement or Trust Agreement:  This Amended and Restated Trust Agreement and
any amendments or modifications hereof.

 

Authorized Officer:  With respect to the Trust, any officer of the
Owner Trustee who is authorized to act for the Owner Trustee in matters
relating to the Trust and who is identified on

 

 

the list of Authorized Officers delivered by
the Owner Trustee to the Indenture Trustee on the Closing Date (as such list
may be modified or supplemented from time to time thereafter) and, so long as
the Transfer and Servicing Agreement is in effect, any Vice President,
Assistant Vice President, Trust Officer, or more senior officer of the Trust
Administrator who is authorized to act for the Trust Administrator in matters
relating to the Trust and to be acted upon by the Trust Administrator pursuant
to the Transfer and Servicing Agreement and who is identified on the list of
Authorized Officers delivered by the Trust Administrator to the Indenture
Trustee on the Closing Date (as such list may be modified or supplemented from
time to time thereafter).

 

Bank:  [Name
of Owner Trustee] in its individual capacity and not as Owner Trustee under
this Agreement.

 

Certificate: 
Any Ownership Certificate issued pursuant to this Agreement.

 

Certificate of Trust:  The Certificate of Trust to be filed by the
Owner Trustee for the Trust pursuant to Section 3810(a) of the Delaware
Trust Statute in the form of Exhibit C hereto.

 

Certificate Paying Agent:  Initially, the Trust Administrator, in its
capacity as Certificate Paying Agent, or any successor to the Trust
Administrator in such capacity.

 

Certificate Register:  The register maintained by the Certificate
Registrar in which the Certificate Registrar shall provide for the registration
of the Certificates and of transfers and exchanges of such Certificates.

 

Certificate Registrar:   Initially, the Trust Administrator, in its
capacity as Certificate Registrar, or any successor to the Trust Administrator
in such capacity.

 

Certificateholder or Holder:  The Person in whose name a Certificate is
registered in the Certificate Register.

 

Code: 
The Internal Revenue Code of 1986, as amended.

 

Collateral: 
As defined in the Indenture.

 

Corporate Trust Office:  With respect to (i) the Owner Trustee, the
corporate trust administration office of the Owner Trustee located at [                                                ],
or at such other address as the Owner Trustee may designate by notice to the
Trust Administrator, or the principal office of any successor Owner Trustee
(the address (which shall be in the State of Delaware) of which the successor
owner trustee will notify the Certificateholders); (ii) the Trust
Administrator, the principal corporate trust office of the Trust Administrator
at which, at any particular time, its corporate trust business shall be
administered, which office at the date hereof for purposes of transfers and
exchanges and for presentment and surrender of the Certificates and for payment
thereof is located at [                                                ],
Attention:  Corporate Trust Group, and
for all other purposes is located at [                                                ],
Attention:  Corporate Trust Group (or for
overnight deliveries, at [                                                ],
Attention:  Corporate Trust Group); and
(iii) the Certificate Registrar, the principal office of the Certificate
Registrar at which at any particular time its corporate trust business shall be
administered, which office at the date of

 

2

 

execution of this Agreement is located at the
Corporate Trust Office of the Trust Administrator, or at such other address as
the Certificate Registrar may designate from time to time by notice to the
Securityholders and the Trust, or the principal corporate trust office of any
successor Certificate Registrar at the address designated by such successor
Certificate Registrar by notice to the Securityholders and the Trust.

 

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

 

Depositor: 
Fieldstone Mortgage Investment Corporation, a Maryland corporation.

 

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

 

Expenses: 
The meaning specified in Section 7.02.

 

Indenture: 
The indenture dated as of [                    ],
2005, between the Issuer and the Indenture Trustee, as such may be amended or
supplemented from time to time.

 

Indenture Trustee:  [                                                ],
not in its individual capacity but solely as Indenture Trustee, or any
successor in interest.

 

Initial Holder:  Fieldstone Mortgage Ownership Corp., or any
successor in interest, in the case of the Ownership Certificate.

 

Master Servicer:  [                                                ],
or any successor in interest.

 

Net Proceeds from the Notes:  The proceeds received by the Trust from time
to time from the issuance and sale of its Notes, less the costs and expenses
incurred in connection with the issuance and sale of such Notes.

 

Non-U.S. Person:  Any person other than a “United States person”
as defined in Section 7701(a)(30) of the Code.

 

Note: 
Any of the Class 1-A1, Class 1-A2, Class 2-A1, Class 2-A2, Class A-IO,
Class M1, Class M2, Class M3, Class M4, Class M5, Class M6 or Class M7 Notes
issued pursuant to the Indenture.

 

Noteholder: 
A Person in whose name a Note is registered on the Note Register.

 

Officer: 
Those officers of the Trust referred to in Article XI.

 

Opinion of Counsel:  One or more written opinions of counsel who
may, except as otherwise expressly provided in this Agreement, be employees of
or counsel to the Depositor and who shall be satisfactory to the Owner Trustee
and the Trust Administrator, which opinion shall be addressed to the Owner
Trustee and the Trust Administrator.

 

Original Trust Agreement:  As defined in the recitals hereof.

 

3

 

Ownership Certificate:  An equity certificate representing a 100%
undivided beneficial interest in the Trust in substantially the form annexed
hereto as part of Exhibit A.

 

Owner Trustee: 
[                                                ],
a [                    ],
and any successor in interest, not in its individual capacity, but solely as
owner trustee under the Trust Agreement.

 

Percentage Interest:  With respect to any Ownership Certificate,
the percentage set forth on the face thereof.

 

Proposer: 
The Certificateholder making a written request pursuant to Section 5.07.

 

Prospective Holder:  Each prospective purchaser and any subsequent
transferee of the Ownership Certificate.

 

Qualified REIT Subsidiary:  A direct or indirect 100% owned subsidiary of
a REIT that satisfies the requirements of Section 856(i) of the Code.

 

REIT:  A
real estate investment trust within the meaning of Sections 856 and 857 of the
Code.

 

Responsible Officer:  With respect to (i) the Owner Trustee, any
officer within the Corporate Trust Office of the Owner Trustee with direct
responsibility for the administration of the Trust and also, with respect to a
particular matter, any other officer to whom such matter is referred because of
such officer’s knowledge of, and familiarity with, the particular subject; and
(ii) the Trust Administrator, any officer within the Corporate Trust Office of
the Trust Administrator with direct responsibility for the administration of
the Trust and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer’s knowledge of, and
familiarity with, the particular subject.

 

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

 

Security: 
Any of the Certificates or Notes.

 

Securityholder:  Any Certificateholder or Noteholder.

 

Seller: 
Fieldstone Investment Corporation, a Maryland corporation.

 

Transfer and Servicing Agreement:  The Transfer and Servicing Agreement dated as
of [                    ],
2005, by and among the Trust, the Depositor, the Trust Administrator, the
Master Servicer, Fieldstone Servicing Corp., as servicer, [                                                ],
as sub-servicer, the Seller and the Indenture Trustee, as such may be amended
or supplemented from time to time.

 

Trust: 
The trust established pursuant to this Agreement which shall carry on
its business operations under the name of “Fieldstone Mortgage Investment
Trust, Series 2005-[    ].”

 

Trust Administrator:  [                                                ],
or any successor in interest.

 

4

 

Section 1.02.                             Other Definitional Provisions.

 

Capitalized terms used herein and not defined herein shall have the
same meanings assigned to them in the Transfer and Servicing Agreement or in
the Indenture, as applicable.

 

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

 

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

 

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

 

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

 

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

 

ARTICLE II

ORGANIZATION

 

Section 2.01.                             Name.  The trust established under this Agreement
shall be referred to as “Fieldstone Mortgage Investment Trust, Series 2005-[    ],”
in which name the Owner Trustee and the Officers may conduct the activities
contemplated hereby, including the making and executing of contracts and other
instruments on behalf of the Trust and sue and be sued.

 

Section 2.02.                             Office.  The principal office of the Trust shall be in
care of the Owner Trustee, at its Corporate Trust Office.  The Trust shall also have an office in care
of the Trust Administrator at its Corporate Trust Office.

 

5

 

Section 2.03.                             Purpose and Powers.  The Trust shall have the power and authority
to engage in any of the following activities:

 

(a)                                  to issue the Notes pursuant to
the Indenture and the Certificates pursuant to this Agreement and to sell,
transfer and exchange such Notes and Certificates;

 

(b)                                 with the proceeds of the sale of
the Notes and the Certificates, to pay the organizational, start-up and
transactional expenses of the Trust and to pay the balance of the Net Proceeds
from the Notes to the Depositor in consideration of the transfer to the Trust
of the Collateral;

 

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

 

(d)                                 to enter into and perform its
obligations under the Operative Agreements and the Swap Agreement to which it
is to be a party;

 

(e)                                  to engage in those activities,
including entering into agreements, that are necessary, suitable or convenient
to accomplish the foregoing or are incidental thereto or connected therewith;
and

 

(f)                                    subject to compliance with the
Operative Agreements, to engage in such other activities as may be required in
connection with conservation of the Trust Estate and the making of
distributions and payments to the Certificateholders and the Noteholders.

 

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

 

Section 2.04.                             Appointment of the Owner Trustee.  The Depositor hereby appoints the Bank to act
as owner trustee (the “Owner Trustee”) of the Trust effective as of the date
hereof to have all the rights, powers and duties set forth herein with respect
to accomplishing the purposes of the Trust.

 

The Owner Trustee is hereby authorized to execute this Agreement, the
Indenture, the Transfer and Servicing Agreement and any other Operative
Agreement on behalf of the Trust.  The
Owner Trustee is hereby authorized to take all actions required or permitted to
be taken by it in accordance with the terms of this Agreement.

 

Section 2.05.                             Initial Capital Contribution;
Declaration of Trust.

 

(a)                                  The Depositor hereby sells,
assigns, transfers, conveys and sets over to the Trust, as of the date hereof,
the sum of $1.  The Owner Trustee hereby
acknowledges receipt in trust from the Depositor, as of the Closing Date, of
the foregoing contribution, which shall constitute the initial corpus of the
Trust Estate.  The Depositor shall pay
organizational expenses of the

 

6

 

Trust as they may arise or shall, upon the request of the Owner
Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the
Owner Trustee.

 

(b)                                 The Owner Trustee hereby
declares that it will hold the Trust Estate in trust upon and subject to the
conditions set forth herein for the use and benefit of the Certificateholders,
subject to the obligations of the Trust under the Operative Agreements.  It is the intention of the parties hereto
that the Trust constitute a statutory trust under the Delaware Trust Statute
and that this Agreement constitute the governing instrument of such statutory
trust.  No later than the Closing Date,
the Owner Trustee shall cause the filing of the Certificate of Trust with the
Secretary of State.  Except as otherwise
provided in this Agreement, the rights of the Certificateholders will be those
of beneficial owners of the Trust.

 

Section 2.06.                             Issuance of Initial Certificates.  Upon the formation of the Trust by the
initial contribution by the Depositor pursuant to Section 2.05, the Owner
Trustee will issue the Certificates to the Initial Holders.

 

Section 2.07.                             Liability of the Ownership
Certificate Holder.  [The Ownership Certificate Holder shall be
liable directly to and shall indemnify any injured party for all losses,
claims, damages, liabilities and expenses of the Trust (including Expenses, to
the extent not paid out of the Trust Estate); provided, however,
that the Ownership Certificate Holder shall not be liable for payments required
to be made to or for any losses incurred by a Noteholder in the capacity of an
investor in the Notes.  In addition, any
third party creditors of the Trust (other than in connection with the
obligations described in the following sentence for which the Ownership
Certificate Holder shall be liable) shall be deemed third party beneficiaries
of this paragraph.  The Ownership
Certificate Holder shall be liable for any entity level taxes imposed on the
Trust.  The obligations of the Ownership
Certificate Holder under this paragraph shall be evidenced by the Ownership
Certificate.]

 

Section 2.08.                             Situs of Trust.  The Trust will be located in the State of
Delaware.  All bank accounts maintained
by the Owner Trustee on behalf of the Trust shall be located in the States of
Delaware, New York or the jurisdiction where the Trust Administrator maintains
bank accounts with respect to collections on the Collateral.  The only office of the Trust will be as
described in Section 2.02 hereof. 
The Trust shall not have any employees; provided, however,
that nothing herein shall restrict or prohibit the Owner Trustee from having
employees within or without the State of Delaware.  Payments will be received by the Trust only
in Delaware, New York, the jurisdiction in which the Trust Administrator
maintains the Collection Account or such other jurisdiction designated by the
Depositor, and payments will be made by the Trust only from the Collection
Account or from Delaware, New York or such other jurisdiction designated by the
Depositor.

 

Section 2.09.                             Title to Trust Property.

 

(a)                                  Subject to the Indenture, title
to all of the Trust Estate shall be vested at all times in the Trust as a
separate legal entity until this Agreement terminates pursuant to Article VIII
hereof; provided, however, that if the laws of any
jurisdiction require that title to any part of the Trust Estate be vested in
the trustee of the Trust, then title to that part of the Trust Estate shall be

 

7

 

deemed to be vested in the Owner Trustee or any co-trustee or separate
trustee, as the case may be, appointed pursuant to Article IX of this
Agreement.

 

(b)                                 The Certificateholders shall
have beneficial but not legal title to any part of the Trust Estate.  No transfer by operation of law or otherwise
of any interest of the Certificateholders shall operate to terminate this
Agreement or the trusts created hereunder or entitle any transferee to an
accounting or to the transfer to it of any part of the Trust Estate.

 

Section 2.10.                             Representations and Warranties
of the Depositor.  The Depositor hereby represents and warrants
to the Owner Trustee and the Trust Administrator as of the Closing Date, as
follows:

 

(a)                                  The Depositor is duly organized
and validly existing as a corporation in good standing under the laws of the
State of Delaware, with power and authority to own its properties and to
conduct its business as such properties are currently owned and such business
is presently conducted and had at all relevant times, and now has, power,
authority and the legal right to acquire and own the Mortgage Loans.

 

(b)                                 The Depositor is duly qualified
to do business as a foreign corporation in good standing and has obtained all
necessary licenses and approvals in all jurisdictions in which the ownership or
lease of property or the conduct of its business shall require such
qualifications.

 

(c)                                  The Depositor has the power and
authority to execute and deliver any Operative Agreement to which it is a party
and to carry out its terms; the Depositor has full power and authority to sell
and assign the Collateral to be sold and assigned to and deposited with the
Trust and the Depositor has duly authorized such assignment and deposit to the
Trust by all necessary corporate action; and the execution, delivery and
performance of this Agreement or any other Operative Agreement to which it is a
party has been duly authorized by the Depositor by all necessary corporate
action and, assuming the due authorization, execution and delivery of each such
agreement by the other parties thereto, each such agreement constitutes a valid
and binding obligation of the Depositor, enforceable against the Depositor in
accordance with its terms, except as enforcement thereof may be subject to or
limited by bankruptcy, insolvency, moratorium, reorganization or other similar
laws relating to or affecting creditors’ rights generally and by general
equitable principles.

 

(d)                                 The consummation of the transactions
contemplated by this Agreement and the fulfillment of the terms hereof and
thereof do not conflict with, result in any breach of any of the terms and
provisions of, or constitute (with or without notice or lapse of time) a
default under, the certificate of incorporation or by-laws of the Depositor, or
any indenture, agreement or other instrument to which the Depositor is a party
or by which it is bound; nor result in the creation or imposition of any lien
upon any of its properties pursuant to the terms of any such indenture,
agreement or other instrument (other than pursuant to the Operative
Agreements); nor violate any law or, to the best of the Depositor’s knowledge,
any order, rule or regulation applicable to the Depositor of any court or of
any Federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Depositor or its
properties.

 

8

 

(e)                                  There are no proceedings or
investigations, pending or, to the best knowledge of the Depositor, threatened
before any court, regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Depositor or its properties:  (i) asserting the invalidity of this Agreement
or any other Operative Agreement to which the Depositor is a party, (ii)
seeking to prevent the consummation of any of the transactions contemplated by
this Agreement or any other Operative Agreement to which the Depositor is a
party or (iii) seeking any determination or ruling that might materially and
adversely affect the performance by the Depositor of its obligations under, or
the validity or enforceability of, this Agreement or any other Operative
Agreement to which the Depositor is a party.

 

(f)                                    The representations and
warranties of the Depositor made pursuant to the Transfer and Servicing
Agreement are true and correct.

 

(g)                                 This Agreement is not required
to be qualified under the Trust Indenture Act of 1939, as amended, and the
Trust is not required to be registered as an “investment company” under the
Investment Company Act of 1940, as amended.

 

Section 2.11.                             Tax Treatment.  The Depositor, the Owner Trustee and the
Initial Holder intend that the Trust be treated for federal income tax purposes
as a Qualified REIT Subsidiary.  The
Trust Administrator will perform the calculation of accrual of original issue
discount and the amortization of premium on the Securities.  The Seller will prepare and file the Trust’s
income tax returns and will make any other necessary tax filings under the
Code.

 

Section 2.12.                             Investment Company.  Neither the Depositor nor any holder of a
Certificate shall take any action which would cause the Trust to become an “investment
company” which would be required to register under the Investment Company Act
of 1940, as amended.

 

ARTICLE III

THE CERTIFICATES AND TRANSFERS OF INTERESTS

 

Section 3.01.                             The Certificates.  The Ownership Certificate shall initially be
issued as a single certificate in definitive, fully registered form and shall
initially be registered in the name of the applicable Initial Holder.  No Ownership Certificate shall be issued in
authorized denominations of less than a 100% Percentage Interest in such
Certificate.  The Certificates shall be
executed on behalf of the Trust by manual or facsimile signature of an
Authorized Officer of the Owner Trustee and authenticated in the manner
provided in Section 3.02.  Each
Certificate bearing the manual signatures of individuals who were, at the time
when such signatures shall have been affixed, authorized to sign on behalf of
the Trust, shall be validly issued and entitled to the benefit of this
Agreement, notwithstanding that such individuals or any of them shall have
ceased to be so authorized prior to the authentication and delivery of each
such Certificate or did not hold such offices at the date of authentication and
delivery of each such Certificate.  A
Person shall become a Certificateholder and shall be entitled to the rights and
subject to the obligations of a Certificateholder hereunder upon such Person’s
acceptance of a Certificate duly registered in such Person’s name pursuant to Section 3.03.

 

9

 

Section 3.02.                             Execution, Authentication and
Delivery of the Certificates.  Concurrently with the sale of the Collateral
to the Trust pursuant to the Transfer and Servicing Agreement, the Owner
Trustee shall cause the Certificates issued hereunder to be executed and
authenticated on behalf of the Trust and authenticated and delivered to or upon
the written order of the Depositor, signed by its chairman of the board, its
president or any vice president, without further corporate action by the
Depositor.  No Certificate shall entitle
its Holder to any benefit under this Agreement or be valid for any purpose
unless there shall appear on such Certificate a certificate of authentication
substantially in the form set forth as part of Exhibit A hereto, executed by
the Owner Trustee or the Certificate Registrar, as the Owner Trustee’s
authenticating agent, by manual signature; such authentication shall constitute
conclusive evidence that such Certificate shall have been duly authenticated
and delivered hereunder.  All
Certificates shall be dated the date of their authentication.

 

Section 3.03.                             Registration of and Limitations
on Transfers and Exchanges of the Certificates.  The Certificate Registrar shall keep or cause
to be kept, at the office or agency maintained pursuant to Section 3.08, a
Certificate Register in which, subject to such reasonable regulations as it may
prescribe, the Certificate Registrar shall provide for the registration of the
Certificates and of transfers and exchanges of the Certificates as set forth
herein; provided, however, that no Ownership Certificate shall be issued in any such
transfer and exchange representing less than a 100% Percentage Interest in such
Certificate, and provided,
further, that no Ownership Certificate
shall be issued in any such transfer and exchange except in accordance with the
provisions and conditions set forth below in this Section 3.03.  The Trust Administrator shall be the initial
Certificate Registrar.  If the
Certificate Registrar resigns or is removed, the Owner Trustee, with the
consent of the Depositor, shall appoint a successor Certificate Registrar.

 

Subject to satisfaction of the conditions set forth below, upon
surrender for registration of transfer of a Certificate at the office or agency
maintained pursuant to Section 3.08, the Owner Trustee shall execute,
authenticate and deliver (or cause the Trust Administrator as its
authenticating agent to authenticate and deliver), in the name of the
designated transferee, a new Certificate evidencing the Percentage Interest of
the Certificate so surrendered and dated the date of authentication by the
Owner Trustee or the Certificate Registrar.

 

Every Certificate presented or surrendered for registration of transfer
or exchange shall be accompanied by a written instrument of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed
by each Certificateholder or such Certificateholder’s attorney duly authorized
in writing.  Each Certificate surrendered
for registration of transfer or exchange shall be cancelled and subsequently
disposed of by the Certificate Registrar in accordance with its customary
practice.

 

No service charge shall be made for any registration of transfer or
exchange of a Certificate, but the Owner Trustee or the Certificate Registrar
may require payment of a sum sufficient to cover any tax or governmental charge
that may be imposed in connection with any transfer or exchange of a
Certificate or any other expense arising as a result of any registration of
transfer or exchange.

 

10

 

The preceding provisions of this Section notwithstanding, the
Owner Trustee shall not make and the Certificate Registrar shall not register
transfer or exchanges of a Certificate for a period of 15 days preceding the
due date for any payment with respect to such Certificate.

 

No transfer of a Certificate shall be made unless such transfer is
exempt from the registration requirements of the Securities Act and any
applicable state securities laws or is made in accordance with said Act and
laws.  Except in the case of an initial
transfer to an Initial Holder, in the event of any such transfer, the
Certificate Registrar or the Depositor shall prior to such transfer require the
transferee to execute (i) an investment letter (in the form attached hereto as
Exhibit D-1) certifying to the Trust, the Owner Trustee, the Trust
Administrator, the Certificate Registrar and the Depositor that such transferee
is a “qualified institutional buyer” under Rule 144A under the Securities Act,
or (ii) an investment letter (in the form attached hereto as Exhibit D-2)
certifying to the Trust, the Owner Trustee, the Trust Administrator, the
Certificate Registrar and the Depositor that such transferee is an “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of the Securities
Act), and any expense associated with the preparation and execution of any such
investment letter shall not be an expense of the Trust, the Owner Trustee, the
Trust Administrator, the Certificate Registrar or the Depositor.  A Certificateholder desiring to effect the
transfer of a Certificate shall, and does hereby agree to, indemnify the Trust,
the Owner Trustee, the Trust Administrator, the Certificate Registrar and the
Depositor against any and all liability that may result if the transfer is not
so exempt or is not made in accordance with such federal and state laws.

 

Except in the case of an initial transfer to an Initial Holder, no
transfer of a Certificate shall be made unless the Certificate Registrar shall
have received a representation letter (in the form attached hereto as Exhibit
D-1 or D-2) from the proposed transferee of such Certificate to the effect that
such proposed transferee is not an employee benefit plan or other retirement
arrangement subject to Section 406 of ERISA, or Section 4975 of the
Code or any substantially similar applicable law, or a Person acting on behalf
of or using the assets of any such plan, which representation letter shall not
be an expense of the Trust, the Owner Trustee, the Trust Administrator, the
Certificate Registrar or the Depositor.

 

Prior to and as a condition of the registration of any transfer, sale
or other disposition of the Ownership Certificate, each Initial Holder of an
Ownership Certificate and each Prospective Holder of an Ownership Certificate
shall represent and warrant in writing, in the case of each Initial Holder, in
substantially the form set forth in Exhibit E hereto, and in the case of each
Prospective Holder, in substantially the form set forth in Exhibit F hereto, to
the Owner Trustee, the Trust Administrator and the Certificate Registrar and
any of their respective successors that:

 

(i)                                     Such Person is
duly authorized to purchase the Ownership Certificate and its purchase of
investments having the characteristics of the Ownership Certificate is
authorized under, and not directly or indirectly in contravention of, any law,
charter, trust instrument or other operative document, investment guidelines or
list of permissible or impermissible investments that is applicable to the
investor;

 

(ii)                                  Such Person
understands that each holder of an Ownership Certificate, by virtue of its
acceptance thereof, assents to the terms, provisions and conditions of the
Agreement; and

 

11

 

(iii)                               Such Person is a REIT or
a Qualified REIT Subsidiary.

 

The Owner Trustee shall cause each Certificate to contain a legend,
substantially similar to the applicable legends provided in Exhibit A hereto,
stating that transfer of such Certificate is subject to certain restrictions and
referring prospective purchasers of the Certificates to this Section 3.03
with respect to such restrictions.

 

Section 3.04.                             Lost, Stolen, Mutilated or
Destroyed Certificate.  If (a) a mutilated Certificate is surrendered
to the Certificate Registrar, or (b) the Certificate Registrar receives
evidence to its satisfaction that a Certificate has been destroyed, lost or
stolen, and there is delivered to the Certificate Registrar proof of ownership
satisfactory to the Certificate Registrar, together with such security or
indemnity as required by the Certificate Registrar and the Owner Trustee to
save each of them harmless, then in the absence of notice to the Certificate
Registrar or the Owner Trustee that such Certificate has been acquired by a
protected purchaser, the Owner Trustee shall execute on behalf of the Trust,
and the Owner Trustee or the Certificate Registrar shall authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Certificate, a new Certificate of like tenor and Percentage
Interest.  In connection with the
issuance of any new Certificate under this Section 3.04, the Owner Trustee
or the Certificate Registrar may require the payment of a sum sufficient to
cover any expenses of the Owner Trustee or the Certificate Registrar (including
any fees and expenses of counsel) and any tax or other governmental charge that
may be imposed in connection therewith. 
Any duplicate Certificate issued pursuant to this Section 3.04
shall constitute conclusive evidence of ownership in the Trust, as if
originally issued, whether or not the lost, stolen or destroyed Certificate
shall be found at any time.

 

Section 3.05.                             Persons Deemed
Certificateholders.  Prior to due presentation of a Certificate
for registration of transfer, the Owner Trustee, the Certificate Registrar or
any Certificate Paying Agent may treat any Certificateholder as the owner of
such Certificate for the purpose of receiving distributions pursuant to Section 4.02
and for all other purposes whatsoever, and none of the Trust, the Owner
Trustee, the Certificate Registrar or any Certificate Paying Agent shall be
bound by any notice to the contrary.

 

Section 3.06.                             Access to List of
Certificateholders’ Names and Addresses.  The Certificate
Registrar shall furnish or cause to be furnished to the Depositor or the Owner
Trustee, within 15 days after receipt by the Certificate Registrar of a written
request therefor from the Depositor or the Owner Trustee, in such form as the
Depositor or the Owner Trustee, as the case may be, may reasonably require, the
name and address of each Certificateholder as of the most recent Record
Date.  A Certificateholder, by receiving
and holding a Certificate, shall be deemed to have agreed not to hold any of
the Trust, the Depositor, the Certificate Registrar and the Owner Trustee
accountable or liable for damages by reason of the disclosure of its name and
address, regardless of the source from which such information was derived.

 

Section 3.07.                             [Reserved]

 

Section 3.08.                             Maintenance of Office or Agency.  The Certificate Registrar on behalf of the
Trust, shall maintain an office or offices or agency or agencies where the
Certificates may be surrendered for registration of transfer or exchange and
where notices and demands to or upon

 

12

 

the Owner Trustee in respect of the
Certificates and the Operative Agreements may be served.  The Certificate Registrar shall give the
Owner Trustee prompt notice, in writing, of any such notice or demand.  The Certificate Registrar initially
designates the Corporate Trust Office of the Trust Administrator as its office
for such purposes.  The Certificate
Registrar shall give prompt written notice to the Depositor, the Owner Trustee
and the Certificateholders of any change in the location of the Certificate
Register or any such office or agency.

 

Section 3.09.                             Certificate Paying Agent.

 

(a)                                  The Owner Trustee may appoint,
and hereby appoints, the Trust Administrator as Certificate Paying Agent under
this Agreement.  The Certificate Paying
Agent shall make distributions to each Certificateholder from the Collection
Account pursuant to Section 4.02 hereof and Sections 5.08 and 6.02 of the
Transfer and Servicing Agreement and, upon request, shall report the amounts of
such distributions to the Owner Trustee. 
The Certificate Paying Agent shall have the revocable power to withdraw
funds from the Collection Account for the purpose of making the distributions
referred to above.  The Trust
Administrator hereby accepts such appointment and further agrees that it will
be bound by the provisions of this Agreement and the Transfer and Servicing
Agreement relating to the Certificate Paying Agent and shall:

 

(i)                                     hold all sums held
by it for the payment of amounts due with respect to the Certificates in trust
for the benefit of the Person entitled thereto until such sums shall be paid to
such Person or otherwise disposed of as herein provided;

 

(ii)                                  give the Owner
Trustee notice of any default by the Trust of which a Responsible Officer of
the Trust Administrator has actual knowledge in the making of any payment
required to be made with respect to the Certificates;

 

(iii)                               at any time during the
continuance of any such default, upon the written request of the Owner Trustee
forthwith pay to the Owner Trustee on behalf of the Trust all sums so held in
Trust by such Certificate Paying Agent;

 

(iv)                              immediately resign as
Certificate Paying Agent and forthwith pay to the Owner Trustee on behalf of
the Trust all sums held by it in trust for the payment of the Certificates if
at any time it ceases to meet the standards under this Section 3.09
required to be met by the Certificate Paying Agent at the time of its
appointment; and

 

(v)                                 not institute
bankruptcy proceedings against the Trust in connection with this Agreement.

 

(b)                                 In the event that the Trust
Administrator shall no longer be the Certificate Paying Agent hereunder, the
Owner Trustee, with the consent of the Depositor, shall appoint a successor to
act as Certificate Paying Agent (which shall be a bank or trust company).  The Owner Trustee shall cause such successor
Certificate Paying Agent or any additional Certificate Paying Agent appointed
by the Owner Trustee to execute and deliver to the Owner Trustee an instrument
in which such successor Certificate Paying Agent or additional Certificate
Paying Agent shall agree with the Owner Trustee that as Certificate Paying
Agent, such successor Certificate Paying Agent or additional Certificate Paying
Agent will hold all sums, if any, held by it for payment in trust for the
benefit of each Certificateholder entitled thereto until such sums shall be
paid to

 

13

 

such Certificateholder.  The
Certificate Paying Agent shall return all unclaimed funds to the Owner Trustee,
and upon removal of a Certificate Paying Agent, such Certificate Paying Agent
shall also return all funds in its possession to the Owner Trustee.  The provisions of Sections 5.03, 5.04, 6.01,
6.05, 6.07, 6.08, 7.01 and 7.02 shall apply to the Trust Administrator also in
its role as Certificate Paying Agent for so long as the Trust Administrator
shall act as Certificate Paying Agent and, to the extent applicable, to any
other Certificate Paying Agent appointed hereunder.  Any reference in this Agreement to the
Certificate Paying Agent shall include any co-paying agent unless the context
requires otherwise.

 

Section 3.10.                             Initial Beneficiary.  Upon the formation of the Trust by the
contribution by the Depositor pursuant to Section 2.05 and until the
issuance of the Certificates, the Depositor shall be the sole beneficiary of
the Trust.

 

ARTICLE IV

APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

 

Section 4.01.                             Collection Account.  All of the right, title and interest of the
Trust in all funds on deposit from time to time in the Collection Account and
in all proceeds thereof shall be held for the benefit of each Certificateholder
and such other persons entitled to payments therefrom.  Except as otherwise expressly provided herein
or in the Transfer and Servicing Agreement, the Collection Account shall be
under the sole dominion and control of the Owner Trustee for the benefit of the
Certificateholders.

 

The Collection Account shall be subject to and established and
maintained in accordance with the applicable provisions of the Transfer and
Servicing Agreement and the Indenture, including, without limitation, the
provisions of Sections 5.08 and 6.02 of the Transfer and Servicing Agreement
regarding distributions from the Collection Account.

 

Section 4.02.                             Application of Trust Funds.

 

(a)                                  On each Payment Date, the Owner
Trustee shall direct the Certificate Paying Agent to distribute to each
Certificateholder, from amounts on deposit in the Collection Account, the
distributions as provided in Sections 5.08 and 6.02 of the Transfer and
Servicing Agreement with respect to such Payment Date.  The Owner Trustee hereby directs the
Certificate Paying Agent to distribute on each Payment Date to each
Certificateholder amounts on deposit in the Collection Account in accordance
with Sections 5.08 and 6.02 of the Transfer and Servicing Agreement and the
Certificate Paying Agent hereby acknowledges such direction.

 

(b)                                 All payments to be made under
this Agreement by the Certificate Paying Agent shall be made only from the
income and proceeds, including Net Proceeds from the Notes, of the Trust Estate
and only to the extent that the Certificate Paying Agent has received such
income or proceeds.  The Bank shall not
be liable to any Certificateholder, the Indenture Trustee or the Trust
Administrator for any amounts payable pursuant to this Section 4.02 except
to the extent that non-payment is due to the Owner Trustee’s acts or omissions
amounting to willful misconduct or gross negligence.

 

(c)                                  Distributions to any Certificateholder
shall be subordinated to the creditors of the Trust, including, without
limitation, the Noteholders.

 

14

 

Section 4.03.                             Method of Payment.  Subject to Section 8.01(c),
distributions required to be made to any Certificateholder on any Payment Date
as provided in Section 4.02 shall be made to the each Person who was a
Certificateholder on the preceding Record Date either by wire transfer, in
immediately available funds, to the account of each such Certificateholder at a
bank or other entity having appropriate facilities therefor, if such respective
Certificateholder shall have provided to the Certificate Registrar appropriate
written instructions at least five Business Days prior to such Payment Date or,
if not, by check mailed to each such Certificateholder at the respective
address of such Certificateholder appearing in the Certificate Register.

 

Section 4.04.                             [Reserved]

 

Section 4.05.                             Segregation of Moneys; No
Interest.  Moneys received by or on behalf of the Owner
Trustee hereunder and deposited into the Collection Account will be segregated
except to the extent required otherwise by law or the provisions of the
Transfer and Servicing Agreement.  The
Owner Trustee shall not be liable for payment of any interest in respect of
such moneys.

 

ARTICLE V

AUTHORITY AND DUTIES OF THE OWNER TRUSTEE;

ACTION BY CERTIFICATEHOLDERS

 

Section 5.01.                             General Authority.  The Owner Trustee is authorized and directed
to execute and deliver the Notes, the Certificates, the other Operative
Agreements to which the Trust is to be a party, each certificate or other
document attached as an exhibit to or contemplated by the Operative Agreements
to which the Trust is to be a party and any amendment or other agreement or
instrument described herein, all as approved by the Depositor, as evidenced
conclusively by the Owner Trustee’s execution thereof, and, on behalf of the
Trust, to direct the Trust Administrator to authenticate the Notes.  In addition to the foregoing, the Owner Trustee
is authorized, but shall not be obligated, to take all actions required of the
Trust pursuant to the Operative Agreements.

 

Section 5.02.                             General Duties.

 

(a)                                  It shall be the duty of the
Owner Trustee to discharge (or cause to be discharged) all of its
responsibilities pursuant to the terms of this Agreement and the other
Operative Agreements to which the Trust is a party and to administer the Trust
in the interest of the Certificateholders, subject to the Operative Agreements
and in accordance with the provisions of this Agreement.  Notwithstanding the foregoing, the Owner
Trustee shall be deemed to have discharged its duties and responsibilities
hereunder and under the Operative Agreements to the extent the Trust
Administrator has agreed in the Transfer and Servicing Agreement or this
Agreement, respectively, to perform any act or to discharge any duty of the
Owner Trustee or the Trust hereunder or under any Operative Agreement, and the
Owner Trustee shall not be held liable for the default or failure of the Trust
Administrator to carry out its obligations under the this Agreement or the
Transfer and Servicing Agreement or any other Operative Agreement,
respectively; and

 

15

 

(b)                                 It shall be the duty of the
Depositor under the Transfer and Servicing Agreement to obtain and preserve the
Trust’s qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of the Indenture, the Notes, the Collateral and each other
instrument and agreement included in the Trust Estate.  It shall be the duty of the Owner Trustee to
cooperate with the Depositor with respect to such matters.

 

Section 5.03.                             Action Upon Instruction.

 

(a)                                  Subject to Article V and in
accordance with the terms of the Operative Agreements, the Ownership
Certificate Holder may by written instruction direct the Owner Trustee in the
management of the Trust, but only to the extent consistent with the limited
purpose of the Trust.  Such direction may
be exercised at any time by written instruction of the Ownership Certificate
Holder pursuant to this Article V.

 

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

 

(c)                                  Whenever the Owner Trustee is
unable to decide between alternative courses of action permitted or required by
the terms of this Agreement or under any other Operative Agreement, or in the
event that the Owner Trustee is unsure as to the application of any provision
of this Agreement or any other Operative Agreement or any such provision is
ambiguous as to its application, or is, or appears to be, in conflict with any
other applicable provision, or in the event that this Agreement permits any
determination by the Owner Trustee or is silent or is incomplete as to the
course of action that the Owner Trustee is required to take with respect to a
particular set of facts, the Owner Trustee may promptly give notice (in such
form as shall be appropriate under the circumstances) to the Ownership
Certificate Holder requesting instruction as to the course of action to be
adopted, and to the extent the Owner Trustee acts in good faith in accordance
with any written instruction of the Ownership Certificate Holder, the Owner
Trustee shall not be liable on account of such action to any Person.  If the Owner Trustee shall not have received
appropriate instruction within 10 days of such notice (or within such shorter
period of time as reasonably may be specified in such notice or may be
necessary under the circumstances) it may, but shall be under no duty to, take
or refrain from taking such action not inconsistent with this Agreement or any
other Operative Agreement, as it shall deem to be in the best interests of each
Certificateholder, and the Owner Trustee shall have no liability to any Person
for such action or inaction.

 

Section 5.04.                             No Duties Except as Specified
under Specified Documents or in Instructions.  The Owner Trustee shall
not have any duty or obligation to manage, make any payment with respect to,
register, record, sell, dispose of, or otherwise deal with the Trust Estate, or
to otherwise take or refrain from taking any action under, or in connection
with, any document contemplated hereby to which the Owner Trustee or the Trust
is a party, except as expressly provided (i) in accordance with the powers
granted to and the authority conferred upon the Owner Trustee pursuant to this
Agreement, and (ii) in accordance with any document or

 

16

 

instruction delivered to the Owner Trustee
pursuant to Section 5.03; and no implied duties or obligations shall be
read into this Agreement or any Operative Agreement against the Owner Trustee.  Without limiting the foregoing, unless
specifically enumerated in any Operative Agreement to which the Owner Trustee
is party, the Owner Trustee (i) shall have no duty or obligation to execute,
file or deliver, or cause the preparation, filing or delivery by other persons
of, any such documents, reports, filings, instruments, certificates or opinions
as it shall be the duty of the Trust to prepare, file or deliver pursuant to
the Operative Agreements, (ii) shall have no duty or obligation to take, or refrain
from taking, any action that is the duty or the obligation of the Trust
pursuant to the Operative Agreements and (iii) shall have no duty or obligation
to monitor the Trust’s duties and obligations pursuant to the Operative
Agreements nor ensure that such duties and obligations are fulfilled by the
Trust.  The Owner Trustee shall have no
responsibility for filing any financing or continuation statement in any public
office at any time or to otherwise perfect or maintain the perfection of any
security interest or lien granted to the Trust or to prepare or file any
Securities and Exchange Commission filing for the Trust or to record this
Agreement or any Operative Agreement or to prepare or file any tax return for
the Trust.  The Owner Trustee nevertheless
agrees that it will, at its own cost and expense, promptly take all action as
may be necessary to discharge any liens on any part of the Trust Estate that
result from actions by, or claims against the Bank that are not related to the
ownership or the administration of the Trust Estate.

 

Section 5.05.                             Restrictions.

 

(a)                                  The Owner Trustee shall not take
any action that is inconsistent with the purposes of the Trust set forth in Section 2.03.  The Ownership Certificate Holder shall not
direct the Owner Trustee to take action that would violate the provisions of
this Section 5.05.

 

(b)                                 The Owner Trustee shall not,
except as provided herein, convey or transfer any of the Trust’s properties or
assets, including those included in the Trust Estate, to any person unless such
conveyance or transfer shall not violate the provisions of the Indenture.

 

Section 5.06.                             Prior Notice to the
Certificateholders with Respect to Certain Matters.   With respect to the following matters, the
Owner Trustee shall not take action unless at least 30 days before the taking
of such action, the Owner Trustee shall have notified each Certificateholder in
writing of the proposed action and each Certificateholder shall have notified
the Owner Trustee in writing prior to the 30th day after such notice is given
that each Certificateholder has consented to such action or provided
alternative direction:

 

(a)                                  The initiation of any claim or
lawsuit by the Trust (except claims or lawsuits brought in connection with the
collection of cash distributions due and owing under the Collateral) and the
compromise of any action, claim or lawsuit brought by or against the Trust
(except with respect to the aforementioned claims or lawsuits for collection of
cash distributions due and owing under the Collateral);

 

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

 

17

 

(c)                                  the amendment of the Indenture by
a supplemental indenture or of this Agreement, the Swap Agreement or any other
Operative Agreement in circumstances where the consent of any Noteholder is
required;

 

(d)                                 the amendment or other change of
the Indenture by a supplemental indenture or of this Agreement or any other
Operative Agreement in circumstances where the consent of any Noteholder is not
required and such amendment materially adversely affects the interests of any
Certificateholder;

 

(e)                                  the amendment of the Transfer
and Servicing Agreement in circumstances where the consent of any
Securityholder is required;

 

(f)                                    the amendment, change or
modification of the Transfer and Servicing Agreement, except to cure any
ambiguity or to amend or supplement any provision in a manner or add any provision
that would not materially and adversely affect the interests of any
Certificateholder;

 

(g)                                 the appointment pursuant to the
Indenture of a successor Note Registrar, Paying Agent or Indenture Trustee or
pursuant to this Agreement of a successor Certificate Registrar or Certificate
Paying Agent or the consent to the assignment by the Note Registrar, Paying
Agent, Indenture Trustee, Certificate Registrar or Certificate Paying Agent of
its obligations under the Indenture or this Agreement, as applicable;

 

(h)                                 the consent to the calling or
waiver of any default of any Operative Agreement;

 

(i)                                     the consent to the assignment by
the Indenture Trustee of its obligations under any Operative Agreement;

 

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

 

(k)                                  the merger, conversion or
consolidation of the Trust with or into any other entity, or conveyance or
transfer of all or substantially all of the Trust’s assets to any other entity;

 

(l)                                     the incurrence, assumption or
guaranty by the Trust of any indebtedness other than as set forth in this
Agreement;

 

(m)                               the taking of any action which
conflicts with any Operative Agreement or would make it impossible to carry on
the ordinary business of the Trust or change the Trust’s purpose and powers set
forth in this Agreement;

 

(n)                                 the confession of a judgment
against the Trust;

 

(o)                                 the possession of the Trust
assets, or assignment of the Trust’s right to property, for other than a Trust
purpose; or

 

(p)                                 the lending of funds by the
Trust to any entity.

 

18

 

In addition, the Trust shall not commingle its assets with those of any
other entity.  The Trust shall maintain
its financial and accounting books and records separate from those of any other
entity.  Except as expressly set forth
herein, the Trust shall pay its indebtedness, operating expenses and
liabilities from its own funds, and the Trust shall neither incur any
indebtedness nor pay the indebtedness, operating expenses and liabilities of
any other entity.  Except as expressly
set forth herein, the Trust shall not engage in any dissolution, liquidation,
consolidation, merger or sale of assets. 
The Trust shall maintain appropriate minutes or other records of all appropriate
actions and shall maintain its office separate from the offices of the
Depositor or any of its Affiliates.  The
Trust shall not engage in any business activity in which it is not currently
engaged other than as contemplated by the Operative Agreements and related
documentation.  The Trust shall not form,
or cause to be formed, any subsidiaries and shall not own or acquire any asset
other than as contemplated by the Operative Agreements and related documentation.  Other than as contemplated by the Operative
Agreements and related documentation, the Trust shall not follow the directions
or instructions of the Depositor.  The
Trust shall conduct its own business in its own name.  The Trust shall observe all formalities
required under the Delaware Trust Statute. 
The Trust shall not hold out its credit as being available to satisfy
the obligations of any other person or entity. 
The Trust shall not acquire the obligations or securities of its
Affiliates or the Seller.  Other than as
contemplated by the Operative Agreements and related documentation, the Trust
shall not pledge its assets for the benefit of any other person or entity.  The Trust shall correct any known
misunderstanding regarding its separate identity.  The Trust shall not identify itself as a
division of any other person or entity.

 

For accounting purposes, the Trust shall be treated as an entity
separate and distinct from each Certificateholder.  The pricing and other material terms of all
transactions and agreements to which the Trust is a party shall be
intrinsically fair to all parties thereto. 
This Agreement is and shall be the only agreement among the parties
thereto with respect to the creation, operation and termination of the Trust.

 

The Owner Trustee shall not have the power, except upon the written
direction of the Ownership Certificate Holder, and to the extent otherwise
consistent with the Operative Agreements, to (i) remove or replace the
Indenture Trustee, or (ii) institute a bankruptcy against the Trust.  So long as the Indenture remains in effect,
to the extent permitted by applicable law, the Ownership Certificate Holder
shall have no power to commence, and shall not commence, any bankruptcy with
respect to the Trust or direct the Owner Trustee to commence any bankruptcy with
respect to the Trust.

 

(q)                                 The Owner Trustee shall not have
the power, except upon the written direction of the Ownership Certificate
Holder, to (i) remove the Trust Administrator under the Transfer and Servicing
Agreement pursuant to Section 7.10 thereof, (ii) appoint a successor Trust
Administrator pursuant to Section 7.10 of the Transfer and Servicing
Agreement, or (iii) except as expressly provided in the Indenture, to sell the
Collateral after the termination of the Indenture.  The Owner Trustee shall take the actions
referred to in the preceding sentence only upon written instructions signed and
authorized by the Ownership Certificate Holder.

 

Section 5.07.                             Action by the Holder with
Respect to Bankruptcy.  The Owner Trustee shall not have the power to
commence or consent to a bankruptcy relating to the Trust without

 

19

 

the prior approval of the Ownership
Certificate Holder and the delivery to the Owner Trustee by the Ownership
Certificate Holder of a certificate certifying that the Ownership Certificate
Holder reasonably believes that the Trust is insolvent.  This paragraph shall survive for one year and
one day following termination of this Agreement.  So long as the Indenture remains in effect,
the Ownership Certificate Holder shall not have the power to institute, and
shall not institute, any bankruptcy with respect to the Trust or direct the
Owner Trustee to take such action.

 

Section 5.08.                             Restrictions on the Ownership
Certificate Holder’s Power.  The Ownership Certificate Holder shall not
direct the Owner Trustee to take or to refrain from taking any action if such
action or inaction would be contrary to any obligation of the Trust or the
Owner Trustee under this Agreement or any of the Operative Agreements or would
be contrary to Section 2.03 nor shall the Owner Trustee be obligated to
follow any such direction, if given.

 

ARTICLE VI

CONCERNING THE OWNER TRUSTEE

 

Section 6.01.                             Acceptance of Trusts and Duties.  The Owner Trustee accepts the trusts hereby
created and agrees to perform the same but only upon the terms of this
Agreement and the terms of the Transfer and Servicing Agreement.  The Owner Trustee also agrees to disburse all
moneys actually received by it constituting part of the Trust Estate upon the
terms of this Agreement.  The Bank shall
not be answerable or accountable hereunder or under any other Operative
Agreements under any circumstances, except (i) for its own willful misconduct,
gross negligence or bad faith, (ii) in the case of the inaccuracy of any
representation or warranty contained in Section 6.04, (iii) for
liabilities arising from the failure by the Bank to perform obligations
expressly undertaken by it in the last sentence of Section 5.04, or (iv)
for taxes, fees or other charges based on or measured by any fees, commissions
or compensation received by the Bank in connection with any of the transactions
contemplated by this Agreement, any other Operative Agreements or the
Notes.  In particular, but not by way of
limitation:

 

(a)                                  The Bank shall not be liable for
any error of judgment made in good faith by a Responsible Officer of the Owner
Trustee;

 

(b)                                 The Bank shall not be liable
with respect to any action taken or omitted to be taken by the Owner Trustee in
accordance with the instructions of any Certificateholder;

 

(c)                                  No provision of this Agreement
shall require the Bank to expend or risk funds or otherwise incur any financial
liability in the performance of any of the Owner Trustee’s rights or powers
hereunder or under any other Operative Agreements if the Bank shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured or provided
to it;

 

(d)                                 Under no circumstance shall the
Bank be liable for indebtedness evidenced by or arising under any of the
Operative Agreements, including the principal of and interest on the Notes;

 

(e)                                  The Bank shall not be liable
with respect to any action taken or omitted to be taken by the Depositor, the
Trust Administrator, the Master Servicer, the Indenture Trustee, any Officer or
the Certificate Paying Agent under this Agreement or any other Operative
Agreement

 

20

 

or otherwise and the Bank shall not be obligated to perform or monitor
the performance of any obligations or duties under this Agreement or the other
Operative Agreements which are to be performed by the Certificate Paying Agent
under this Agreement, the Trust Administrator under the Transfer and Servicing,
the Indenture Trustee under the Indenture or by any other Person under any of
the Operative Agreements; and

 

(f)                                    The Bank shall not be
responsible for or in respect of the recitals herein, the validity or
sufficiency of this Agreement or for the due execution hereof by the Depositor
or for the form, character, genuineness, sufficiency, value or validity of any
of the Trust Estate or for or in respect of the validity or sufficiency of the
Operative Agreements, other than the certificate of authentication on the
Certificates, and the Bank shall in no event assume or incur any liability,
duty or obligation to any Noteholder, the Depositor or to any
Certificateholder, other than as expressly provided for herein.

 

Section 6.02.                             Furnishing of Documents.  The Owner Trustee will furnish to the Trust
Administrator (for distribution to each Certificateholder), promptly upon
receipt of a written request therefor, duplicates or copies of all reports,
notices, requests, demands, certificates, financial statements and any other
instruments furnished to the Owner Trustee hereunder or under the Operative
Agreements unless the Trust Administrator shall have already received the same.

 

Section 6.03.                             Books and Records.  The Owner Trustee shall keep or cause to be
kept proper books of record and account of all the transactions under this
Agreement, including a record of the name and address of each
Certificateholder.  The Owner Trustee
shall be deemed to have complied with this Section 6.03 by the appointment
of the Trust Administrator and the Certificate Paying Agent to perform the
duties hereunder.

 

Section 6.04.                             Representations and Warranties.

 

(a)                                  The Bank represents and warrants
to the Depositor, for the benefit of each Certificateholder, as follows:

 

(i)                                     the Bank is a [                                                ]
duly organized and validly existing under the laws of [                    ]
and has the power and authority to execute, deliver and perform its obligations
under this Agreement and (assuming due authorization, execution and delivery of
this Agreement by the Depositor and Trust Administrator), has the power and
authority as Owner Trustee to execute and deliver the Operative Agreements and
to perform its obligations thereunder and, assuming the due authorization,
execution and delivery hereof by the other parties hereto, this Agreement
constitutes a legal, valid and binding obligation of the Bank or the Owner
Trustee, as the case may be, enforceable against the Bank or the Owner Trustee,
as the case may be, 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;

 

21

 

(ii)                                  the Bank has no
reason to believe that anyone authorized to act on its behalf has offered any
interest in and to the Trust for sale to, or solicited any offer to acquire any
of the same from, anyone;

 

(iii)                               the execution, delivery
and performance by the Bank, either in its individual capacity or as Owner
Trustee, as the case may be, of the Operative Agreements will not result in any
violation of, or be in any conflict with, or constitute a default under any of
the provisions of any indenture, mortgage, chattel mortgage, deed of trust, conditional
sales contract, lease, note or bond purchase agreement, license, judgment,
order or other agreement to which the Bank is a party or by which it or any of
its properties is bound;

 

(iv)                              the execution and
delivery by the Bank of this Agreement, and the performance of its duties as
Owner Trustee hereunder, do not require the consent or approval of, the giving
of notice to, or the registration with, or the taking of any other action with
respect to, any governmental authority or agency of the State of Delaware
(except as may be required by the Delaware Trust Statute); and

 

(v)                                 there are no pending
or, to the best of its knowledge, threatened actions or proceedings against the
Bank before any court, administrative agency or tribunal which, if determined
adversely to it, would materially and adversely affect its ability, either in
its individual capacity or as Owner Trustee, as the case may be, to perform its
obligations under this Agreement or the Operative Agreements.

 

(b)                                 [                                                ], as Trust Administrator,
hereby represents and warrants to the Depositor, for the benefit of each
Certificateholder, that:

 

(i)                                     it is a [                                                ]
duly organized and validly existing in good standing under the laws of [                    ],
and has the power and authority to execute, deliver and perform its obligations
under this Agreement and, assuming the due authorization, execution and
delivery hereof by the other parties hereto, this Agreement constitutes a
legal, valid and binding obligation of the Trust Administrator, enforceable
against the Trust Administrator 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;

 

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

 

(iii)                               neither the execution
nor the delivery by it of this Agreement nor the consummation by it of the
transactions contemplated hereby nor compliance by it with any of the terms or
provisions hereof will contravene any federal, governmental rule or regulation
governing the banking or trust powers of the Trust Administrator or any

 

22

 

judgment or order binding on it, or constitute any default under its
charter documents or by-laws or any indenture, mortgage, contract, agreement or
instrument to which it is a party or by which any of its properties may be
bound.

 

Section 6.05.                             Reliance; Advice of Counsel.

 

(a)                                  Except as provided in Section 6.01,
the Owner Trustee shall incur no liability to anyone in acting upon any
signature, instrument, notice, resolution, request, consent, order,
certificate, report, opinion, bond or other document or paper believed by it to
be genuine and believed by it to be signed by the proper party or parties.  The Owner Trustee may accept a certified copy
of a resolution of the board of directors or other governing body of any
corporate or partnership entity as conclusive evidence that such resolution has
been duly adopted by such body and that the same is in full force and
effect.  As to any fact or matter the
manner of ascertainment of which is not specifically prescribed herein, the
Owner Trustee may for all purposes hereof rely on a certificate, signed by the
president or any vice president (or the general partner, in the case of a
partnership) and by the treasurer or any assistant treasurer or the secretary
or any assistant secretary of the relevant party, as to such fact or matter,
and such certificate shall constitute full protection to the Owner Trustee for
any action taken or omitted to be taken by it in good faith in reliance
thereon.

 

(b)                                 In its exercise or
administration of the trusts and powers hereunder, including its obligations
under Section 5.02(b), and in the performance of its duties and
obligations under this Agreement or the other Operative Agreements, the Owner
Trustee may employ agents and attorneys and enter into agreements (including
the Transfer and Servicing Agreement) with any of them, and the Owner Trustee
shall not be answerable for the default or misconduct of any such agents or
attorneys if such agents or attorneys shall have been selected by the Owner
Trustee with reasonable care.  If, and to
the extent, the Seller shall have failed to reimburse the Owner Trustee for all
reasonable expenses and indemnities incurred pursuant to this Section 6.05(b),
as provided in Section 7.01 and Section 7.02, the Owner Trustee may
seek reimbursement therefor from the Trust Estate.

 

(c)                                  In the administration of the
trusts and performance of its duties hereunder, the Owner Trustee may consult
with counsel, accountants and other skilled Persons to be selected and employed
by it, and the Owner Trustee shall not be liable for anything done, suffered or
omitted in good faith by it in accordance with the reasonable advice or opinion
of any such counsel, accountants or other skilled Persons.  If, and to the extent, the Seller shall have
failed to reimburse the Owner Trustee for all reasonable expenses and indemnities
incurred pursuant to this Section 6.05(c), as provided in Section 7.01
and Section 7.02, the Owner Trustee may seek reimbursement therefor from
the Trust Estate.

 

Section 6.06.                             Not Acting in Individual
Capacity.  Except as provided in this Article VI,
in accepting the trusts hereby created the Owner Trustee acts solely as trustee
hereunder and not in its individual capacity, and all persons having any claim
against the Owner Trustee by reason of the transactions contemplated by the
Operative Agreements shall look only to the Trust Estate for payment or
satisfaction thereof.

 

23

 

Section 6.07.          Owner Trustee Not Liable for
Certificates or Collateral.  The recitals contained herein and in the
Certificates (other than the signatures and countersignatures of the Owner
Trustee on the Certificates) shall be taken as the statements of the Depositor,
and the Owner Trustee assumes no responsibility for the correctness
thereof.  The Owner Trustee makes no
representations as to the validity or sufficiency of this Agreement, of any
Operative Agreement or of the Certificates (other than the signatures and
countersignatures of the Owner Trustee on the Certificates) or the Notes, or of
any Collateral or related documents.  The
Owner Trustee shall at no time have any responsibility or liability for or with
respect to the legality, validity and enforceability of any Collateral, or the
perfection and priority of any security interest created by any Collateral or
the maintenance of any such perfection and priority, or for or with respect to
the sufficiency of the Trust Estate or its ability to generate the payments to
be distributed to Certificateholders under this Agreement or the Noteholders
under the Indenture, including, without limitation:  the existence, condition and ownership of any
Collateral; the existence and enforceability of any insurance thereon; the
existence and contents of any Collateral on any computer or other record
thereof; the validity of the assignment of any Collateral to the Trust or of
any intervening assignment; the completeness of any Collateral; the performance
or enforcement of any Collateral; the compliance by the Depositor with any
warranty or representation made under any Operative Agreements or in any
related document or the accuracy of any such warranty or representation or any
action of the Trust Administrator or the Indenture Trustee taken in the name of
the Owner Trustee.

 

Section 6.08.          Owner Trustee May Own Notes.  The Owner Trustee in its individual capacity
may become an owner or pledgee of Notes and may deal with the Depositor, the
Trust Administrator and the Indenture Trustee in banking transactions with the
same rights as it would have if it were not Owner Trustee.

 

Section 6.09.          Licenses.  The Depositor shall cause the Trust to use
its best efforts to obtain and maintain the effectiveness of any licenses
required in connection with this Agreement and the other Operative Agreements
and the transactions contemplated hereby and thereby until such time as the
Trust shall terminate in accordance with the terms hereof.  It shall be the duty of the Owner Trustee to
cooperate with the Depositor with respect to such matters.

 

Section 6.10.          Doing Business in Other
Jurisdictions.  Notwithstanding anything contained herein to
the contrary, neither the Bank nor the Owner Trustee shall be required to take
any action in any jurisdiction other than in the State of Delaware if the
taking of such action will (i) require the consent or approval or authorization
or order of or the giving of notice to, or the registration with or the taking
of any other action in respect of, any state or other governmental authority or
agency of any jurisdiction other than the State of Delaware; (ii) result in any
fee, tax or other governmental charge under the laws of any jurisdiction or any
political subdivisions thereof in existence on the date hereof other than the
State of Delaware becoming payable by the Bank or the Owner Trustee; or (iii)
subject the Bank or the Owner Trustee to personal jurisdiction in any
jurisdiction other than the State of Delaware for causes of action arising from
acts unrelated to the consummation of the transactions by the Bank or the Owner
Trustee, as the case may be, contemplated hereby.  The Owner Trustee shall be entitled to obtain
advice of counsel (which advice shall be an expense of the Trust) to determine
whether any action required to be taken pursuant to this Agreement results in
the consequences described in clauses (i), (ii) and (iii) of the preceding
sentence.  In the event that such counsel
advises the Owner Trustee that

 

24

 

such action will result in such consequences,
the Owner Trustee will appoint a co-trustee pursuant to Section 9.05
hereof to proceed with such action.

 

Section 6.11.          Sarbanes-Oxley Act Certification.  Notwithstanding anything to the contrary
herein or in any Operative Agreement, the Owner Trustee shall not be required
to execute, deliver or certify on behalf of the Trust or any other Person any
filings, certificates, affidavits or other instruments in connection with
certifications required under the Sarbanes-Oxley Act of 2002.

 

ARTICLE VII

INDEMNIFICATION AND COMPENSATION

 

Section 7.01.          Trust Expenses.  The Seller shall pay the organizational
expenses of the Trust as they may arise or shall, upon the request of the Owner
Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the
Owner Trustee in connection therewith. 
The Seller shall also pay (or reimburse the Bank for) all reasonable
expenses of the Owner Trustee hereunder, including, without limitation, the
reasonable compensation, expenses and disbursements of such agents,
representatives, experts and counsel as the Owner Trustee may employ in
connection with the exercise and performance of its rights and duties under the
Operative Agreements.

 

Section 7.02.          Indemnification.  The Seller agrees to assume liability for,
and indemnify the Bank and its successors, assigns, officers, directors, agents
and servants, against and from, any and all liabilities, obligations, losses,
damages, taxes, claims, actions, suits, costs, expenses and disbursements
(including reasonable legal fees and expenses) of any kind and nature
whatsoever (collectively, “Expenses”) which may be imposed on, incurred by or
asserted at any time against the Bank (whether or not indemnified against by
other parties) in any way relating to or arising out of this Agreement, any
Operative Agreement, the Collateral, the administration of the Trust Estate or
the action or inaction of the Owner Trustee hereunder, except only that the
Seller shall not be required to indemnify the Bank for Expenses arising or
resulting from any of the matters described in the third sentence of Section 6.01.  The indemnities contained in this Section 7.02
shall survive the resignation or termination of the Owner Trustee or the
termination of this Agreement.  In the
event of any claim, action or proceeding for which indemnity will be sought
pursuant to this Section, the Owner Trustee’s choice of legal counsel shall be
subject to the approval of the Seller, which approval shall not be unreasonably
withheld.

 

Section 7.03.          Compensation.  The Bank shall receive as compensation for
its services hereunder such fees as are set forth in the Fee Letter Agreement
between the Bank and the Seller.

 

Section 7.04.          Lien on Trust Estate.  The Bank shall have a lien on the Trust
Estate for any compensation or indemnity due hereunder, such lien to be subject
only to prior liens of the Indenture. 
The Bank shall not bring any proceedings to foreclose on such lien if and
to the extent the Trust Estate is subject to the lien of the Indenture.  Any amount paid to the Owner Trustee pursuant
to this Article VII shall be deemed not to be part of the Trust Estate
immediately after such payment.

 

25

 

ARTICLE VIII

TERMINATION OF AGREEMENT

 

Section 8.01.          Termination of Agreement.

 

(a)           This Agreement (other than Article VII) shall terminate
and the trusts created hereby shall dissolve and terminate and the Trust Estate
shall, subject to the Indenture and Sections 4.01 and 7.04 and Section 3808
of the Delaware Trust Statute, be distributed to the Certificateholders, and
this Agreement shall be of no further force or effect, upon the earlier of (i)
the full payment of principal and interest due on all Classes of the Notes; and
(ii) the sale or other final disposition by the Indenture Trustee or the Owner
Trustee, as the case may be, of all the Trust Estate and the final distribution
by the Indenture Trustee or the Owner Trustee, as the case may be, of all
moneys or other property or proceeds of the Trust Estate in accordance with the
terms of the Indenture, the Transfer and Servicing Agreement and Section 4.02.  The bankruptcy, liquidation or dissolution of
any Certificateholder shall not operate to terminate this Agreement, nor
entitle such Certificateholder’s legal representatives to claim an accounting
or to take any action or proceeding in any court for a partition or winding up
of the Trust Estate, nor otherwise affect the rights, obligations and
liabilities of the parties hereto.

 

(b)           Except as provided in Section 8.01(a), none of the
Depositor or any Certificateholder shall be entitled to revoke or terminate the
Trust established hereunder.

 

(c)           Notice of any termination of the Trust, specifying the
Payment Date upon which Certificateholders shall surrender their Certificates
to the Certificate Paying Agent for payment of the final distribution and
cancellation, shall be given by the Certificate Paying Agent by letter to the
Certificateholders and the Rating Agencies mailed within five Business Days of
receipt of notice of the final payment on the Notes pursuant to the Transfer
and Servicing Agreement, stating (i) the Payment Date upon or with respect to
which final payment of the Certificates shall be made upon presentation and
surrender of the Certificates at the office of the Certificate Paying Agent
therein designated, (ii) the amount of any such final payment and (iii) that
the Record Date otherwise applicable to such Payment Date is not applicable,
payments being made only upon presentation and surrender of the Certificates at
the office of the Certificate Paying Agent therein specified.  The Certificate Paying Agent shall give such
notice to the Owner Trustee and the Certificate Registrar at the time such
notice is given to the Certificateholders. 
Upon presentation and surrender of the Certificates, the Certificate
Paying Agent shall cause to be distributed to the applicable Certificateholder
amounts distributable on such Payment Date pursuant to Section 5.08 and Section 6.02
of the Transfer and Servicing Agreement.

 

(d)           Upon the winding up of the Trust and its termination, the
Owner Trustee shall upon the written request of the Depositor cause the
Certificate of Trust to be cancelled by filing a certificate of cancellation
with the Secretary of State in accordance with the provisions of Section 3810
of the Delaware Trust Statute.

 

26

 

ARTICLE IX

SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

 

Section 9.01.          Eligibility Requirements for
Owner Trustee.  The Owner Trustee shall at all times be a
corporation satisfying the provisions of Section 3807(a) of the Delaware
Trust Statute; authorized to exercise corporate powers; having a combined
capital and surplus of at least $50,000,000 and subject to supervision or
examination by Federal or state authorities; and having (or having a parent
which has) a short-term debt rating of at least “A-1” or the equivalent by, or
which is otherwise acceptable to, the Rating Agencies.  If such corporation shall publish reports of
condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purpose of this
Section, the combined capital and surplus of such corporation shall be deemed
to be its combined capital and surplus as set forth in its most recent report
of condition so published.  In case at
any time the Owner Trustee shall cease to be eligible in accordance with the
provisions of this Section, the Owner Trustee shall resign immediately in the
manner and with the effect specified in Section 9.02.

 

Section 9.02.          Resignation or Removal of Owner
Trustee.  The Owner Trustee may at any time resign and
be discharged from the trusts hereby created by giving 30 days’ prior written
notice thereof to the Depositor and the Indenture Trustee.  Upon receiving such notice of resignation,
the Depositor shall promptly appoint a successor Owner Trustee by written
instrument, in duplicate, one copy of which instrument shall be delivered to
the resigning Owner Trustee and one copy to the successor Owner Trustee.  If no successor Owner Trustee shall have been
so appointed and have accepted appointment within 30 days after the giving of
such notice of resignation, the resigning Owner Trustee may petition any court
of competent jurisdiction for the appointment of a successor Owner Trustee.

 

If at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 9.01 and shall fail to resign
after written request therefor by the Depositor, or if at any time the Owner
Trustee shall be legally unable to act, or shall be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Depositor may remove the Owner
Trustee.  If the Depositor shall remove
the Owner Trustee under the authority of the immediately preceding sentence,
the Depositor shall promptly appoint a successor Owner Trustee by written
instrument in duplicate, one copy of which instrument shall be delivered to the
outgoing Owner Trustee so removed and one copy to the successor Owner Trustee
and payment of all fees owed to the outgoing Owner Trustee.

 

Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section shall
not become effective until acceptance of appointment by the successor Owner
Trustee pursuant to Section 9.03 and payment of all fees and expenses owed
to the outgoing Owner Trustee.  The Trust
Administrator shall provide notice of such resignation or removal of the Owner
Trustee to the Rating Agencies.

 

Section 9.03.          Successor Owner Trustee.  Any successor Owner Trustee appointed
pursuant to Section 9.02 shall execute, acknowledge and deliver to the
Trust Administrator and to its predecessor Owner Trustee an instrument
accepting such appointment under this

 

27

 

Agreement, and thereupon the resignation or
removal of the predecessor Owner Trustee shall become effective and such
successor Owner Trustee without any further act, deed or conveyance, shall
become fully vested with all the rights, powers, duties, and obligations of its
predecessor under this Agreement, with like effect as if originally named as
Owner Trustee.  The predecessor Owner
Trustee shall upon payment of its fees and expenses deliver to the successor
Owner Trustee all documents and statements and monies held by it under this
Agreement; and the Trust Administrator and the predecessor Owner Trustee shall
execute and deliver such instruments and do such other things as may reasonably
be required for fully and certainly vesting and confirming in the successor
Owner Trustee all such rights, powers, duties, and obligations.

 

No successor Owner Trustee shall accept appointment as provided in this
Section unless at the time of such acceptance such successor Owner Trustee
shall be eligible pursuant to Section 9.01.

 

Upon acceptance of appointment by a successor Owner Trustee pursuant to
this Section, the Trust Administrator shall mail notice of the successor of
such Owner Trustee to all Certificateholders, the Indenture Trustee, the
Noteholders and the Rating Agencies.  If
the Trust Administrator fails to mail such notice within 10 days after
acceptance of appointment by the successor Owner Trustee, the successor Owner
Trustee shall cause such notice to be mailed at the expense of the Trust
Administrator.

 

Section 9.04.          Merger or Consolidation of Owner
Trustee.  Any Person into which the Owner Trustee may
be merged or converted or with which it may be consolidated or any Person
resulting from any merger, conversion or consolidation to which the Owner
Trustee shall be a party, or any Person succeeding to all or substantially all
of the corporate trust business of the Owner Trustee, shall be the successor of
the Owner Trustee hereunder, provided
such Person shall be eligible pursuant to Section 9.01, without the
execution or filing of any instrument or any further act on the part of any of
the parties hereto, anything herein to the contrary notwithstanding.

 

Section 9.05.          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 Estate or any Collateral may at
the time be located, and for the purpose of performing certain duties and
obligations of the Owner Trustee with respect to the Trust and the Certificates
under the Transfer and Servicing Agreement, the Owner Trustee shall have the
power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Owner Trustee to act as co-trustee, jointly with the
Owner Trustee, or separate trustee or separate trustees, of all or any part of
the Trust Estate, and to vest in such Person, in such capacity, such title to
the Trust, or any part thereof, and, subject to the other provisions of this
Section, such powers, duties, obligations, rights and trusts as the Owner
Trustee may consider necessary or desirable. 
No co-trustee or separate trustee under this Agreement shall be required
to meet the terms of eligibility as a successor trustee pursuant to Section 9.01
and no notice of the appointment of any co-trustee or separate trustee shall be
required pursuant to Section 9.03.

 

28

 

The Owner Trustee hereby appoints the Trust Administrator for the
purpose of establishing and maintaining the Collection Account and making the
distributions therefrom to the Persons entitled thereto pursuant to Section 5.08
and Section 6.02 of the Transfer and Servicing Agreement.

 

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

 

(a)           all rights, powers, duties and obligations conferred or
imposed upon the Owner Trustee shall be conferred upon and exercised or
performed by the Owner Trustee and such separate trustee or co-trustee jointly
(it being understood that such separate trustee or co-trustee is not authorized
to act separately without the Owner Trustee joining in such act), except to the
extent that under any law of any jurisdiction in which any particular act or
acts are to be performed, the Owner Trustee shall be incompetent or unqualified
to perform such act or acts, in which event such rights, powers, duties, and
obligations (including the holding of title to the Trust 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 Owner
Trustee;

 

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

 

(c)           the Trust Administrator and the Owner Trustee acting jointly
may at any time accept the resignation of or remove any separate trustee or
co-trustee.

 

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

 

Any separate trustee or co-trustee may at any time appoint the Owner
Trustee as its Agent or attorney-in-fact with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. 
If any 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 Owner Trustee, to the extent
permitted by law, without the appointment of a new or successor trustee.

 

ARTICLE X

MISCELLANEOUS

 

Section 10.01.        Supplements and Amendments.  This Agreement may
be amended by the Depositor, the Trust Administrator and the Owner Trustee,
with the consent of each Certificateholder and with the prior written consent
of the Swap Counterparty (but only to the

 

29

 

extent such amendment materially adversely
affects the amounts, priority or timing of payments under the Swap Agreement
and the Swap Agreement is in effect) and with prior written notice to the
Rating Agencies, but without the consent of any of the Noteholders or the
Indenture Trustee, to cure any ambiguity, to correct or supplement any
provisions in this Agreement or for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions in this Agreement
or of modifying in any manner the rights of the Noteholders or each
Certificateholder; provided,
however, that such action shall not, as
evidenced by an Opinion of Counsel, adversely affect in any material respect
the interests of any Noteholder or Certificateholder or adversely affect the
tax status of the Trust.  An amendment
shall not be deemed to adversely affect in any material respect the interests
of any Noteholder or Certificateholder and no opinion referred to in the
preceding proviso shall be required to be delivered if the Person requesting
the amendment obtains a letter from each Rating Agencies stating that the
amendment would not result in the downgrading or withdrawal of the respective
ratings then assigned to each applicable Class of Notes and Certificates.  Notwithstanding the preceding sentence, an
opinion shall be required with respect to tax matters as set forth in this
paragraph.

 

This Agreement may also be amended from time to time by the Depositor,
the Trust Administrator and the Owner Trustee, with the prior written consent
of the Rating Agencies and with the prior written consent of the Indenture
Trustee, the holders of Notes evidencing more than 66 2/3 % of the Outstanding
Balance of the Notes, the consent of each Certificateholder and with the prior
written consent of the Swap Counterparty (but only to the extent such amendment
materially adversely affects the amounts, priority or timing of payments under
the Swap Agreement and the Swap Agreement is in effect), 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 any
Certificateholder; provided, however, that no such amendment shall, as
evidenced by an Opinion of Counsel, adversely affect the tax status of the
Trust; and provided, further, that no such amendment shall (a)
increase or reduce in any manner the amount of, or accelerate or delay the
timing of, collections of payments on the Collateral or payments that shall be
required to be made for the benefit of the Noteholders or any Certificateholder
or (b) reduce the aforesaid percentage of the Outstanding Balance of the Notes
required to consent to or to waive the requirement for any Certificateholder to
consent to any such amendment, in either case of clause (a) or (b) without the
consent of the holders of all the outstanding Notes and each Certificateholder.

 

Notwithstanding the foregoing, no provision of Sections 2.03 or 5.06
hereof may be amended in any manner unless (i) 100% of the Outstanding Balance
of the Noteholders have consented in writing thereto, (ii) the Rating Agencies
have consent in writing thereto or (iii) the Notes have been paid in full and
the Indenture has been discharged.

 

Promptly after the execution of any such amendment or consent, the
Trust Administrator shall furnish written notification of the substance of such
amendment or consent to each Certificateholder, the Indenture Trustee and the
Rating Agencies.

 

It shall not be necessary for the consent of the Certificateholders,
the Noteholders or the Indenture Trustee pursuant to this Section 10.01 to
approve the particular form of any proposed amendment or consent, but it shall
be sufficient if such consent shall approve the substance

 

30

 

thereof. 
The manner of obtaining such consents (and any other consents of the
Certificateholders provided for in this Agreement or in any other Operative
Agreement) and of evidencing the authorization of the execution thereof by the
Certificateholders shall be subject to such reasonable requirements as the
Owner Trustee may prescribe.

 

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

 

Prior to the execution of any amendment to this Agreement or the
Certificate of Trust, the Owner Trustee and the Trust Administrator shall be
entitled to receive and rely upon an Opinion of Counsel, at the expense of the
Trust, stating that the execution of such amendment is authorized or permitted
by this Agreement.  Neither the Owner
Trustee nor the Trust Administrator shall be obligated to enter into any such
amendment which affects the Owner Trustee’s or Trust Administrator’s own
rights, duties or immunities under this Agreement or otherwise.

 

Section 10.02.        No Legal Title to Trust Estate in Certificateholders.  The Certificateholders shall not have legal
title to any part of the Trust Estate and shall only be entitled to receive
distributions with respect to their respective undivided beneficial interest
therein pursuant to Section 4.02 once all amounts then owing with respect
to the Notes have been paid in accordance with the Indenture.  No transfer, by operation of law of any
right, title and interest of any Certificateholder in and to its undivided
beneficial interest in the Trust Estate or hereunder shall operate to terminate
this Agreement or the trusts hereunder or entitle any successor transferee to
an accounting or to the transfer to it of legal title to any part of the Trust
Estate.

 

Section 10.03.        Pledge of Collateral by Owner Trustee is Binding.  The pledge of the Collateral to the Indenture
Trustee by the Trust made under the Indenture and pursuant to the terms of this
Agreement shall bind each Certificateholder and shall be effective to transfer
or convey the rights of the Trust and each Certificateholder in and to such
Collateral to the extent set forth in the Indenture.  No purchaser or other grantee shall be
required to inquire as to the authorization, necessity, expediency or
regularity of such pledge or as to the application of any proceeds with respect
thereto by the Owner Trustee.

 

Section 10.04.        Limitations on Rights of Others.  Nothing in this Agreement, whether express or
implied (except for Section 7.04), shall be construed to give to any
Person other than the Owner Trustee and the Certificateholders any legal or
equitable right in the Trust Estate or under or in respect of this Agreement or
any covenants, conditions or provisions contained herein.

 

Section 10.05.        Notices.  Unless otherwise expressly specified or
permitted by the terms hereof, all notices shall be in writing and delivered by
hand, by courier or mailed by certified mail, postage prepaid, (a) if to the
Owner Trustee or the Trust, addressed to it at the Corporate Trust Office of
the Owner Trustee or to such other address as the Owner Trustee may have set
forth in a written notice to the Certificateholders and the Depositor addressed
to it at the address set forth for such Certificateholders in the Certificate
Register; (b) if to the Trust Administrator, addressed to it at the Corporate
Trust Office of the Trust Administrator; and (c) if to the

 

31

 

Depositor, Fieldstone Mortgage Investment
Corporation, 11000 Broken Lane Parkway, Suite 600, Columbia, Maryland
21044.  Whenever any notice in writing is
required to be given by the Owner Trustee or the Trust Administrator, such
notice shall be deemed given and such requirement satisfied if such notice is
mailed by certified mail, postage prepaid, addressed as provided above.

 

Section 10.06.        Severability.  Any provision of
this Agreement which is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.

 

Section 10.07.        Separate Counterparts.  This Agreement may
be executed by the parties hereto in separate counterparts, each of which when
so executed and delivered shall be an original, but all such counterparts shall
together constitute but one and the same instrument.

 

Section 10.08.        Successors and Assigns.  All
representations, warranties, covenants and agreements contained herein shall be
binding upon, and inure to the benefit of, the Owner Trustee and its successors
and assigns and the Depositor and each Certificateholder and its respective
successors, all as herein provided.  Any
request, notice, direction, consent, waiver or other instrument or action by
any Certificateholder shall bind the successors of each such Certificateholder.

 

Section 10.09.        Headings.  The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

 

Section 10.10.        Governing Law.  THIS AGREEMENT
SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE TO THE CONFLICT OF LAWS
PROVISIONS THEREOF, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER
SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

Section 10.11.        No Petition.

 

(a)           The Owner Trustee and the Trust Administrator, by entering
into this Agreement, each Certificateholder, by accepting the Certificates, and
the Indenture Trustee and each Noteholder, by accepting the benefits of this
Agreement, hereby covenant and agree that they will not at any time institute
against the Depositor or the Trust, or join in any institution against the
Depositor or the Trust of, any bankruptcy under any United States federal or
state bankruptcy or similar law in connection with any obligations relating to
the Certificates, the Notes, this Agreement or any of the other Operative
Agreements.

 

(b)           The Depositor shall not be liable for the default or
misconduct of the Trust Administrator, the Owner Trustee, the Indenture Trustee
or the Certificate Paying Agent under any of the Operative Agreements or
otherwise and the Depositor shall have no obligation or

 

32

 

liability to perform the obligations of the Trust under this Agreement
or the Operative Agreements that are required to be performed by the Trust
Administrator under the Transfer and Servicing Agreement or the Indenture
Trustee under the Indenture.

 

Section 10.12.        No Recourse.  Each
Certificateholder by accepting a Certificate acknowledges that such
Certificateholder’s Certificate represents a beneficial interest in the Trust
only and does not represent an interest in or an obligation of the Depositor,
the Trust Administrator, the Owner Trustee, any co-trustee, the Bank or any
Affiliate thereof (other than the Trust) and no recourse may be had against
such parties or their assets, except as may be expressly set forth or
contemplated in this Agreement, the Certificates or the other Operative
Agreements.

 

Section 10.13.        Customer Identification.  The Depositor’s
legal name, principal place of business, local office or other physical
location street address is Fieldstone Mortgage Investment Corporation, 11000
Broken Lane Parkway, Suite 600, Columbia, Maryland 21044, and its government
issued identification number is 13-3354848. 
The Seller’s legal name, principal place of business, local office or
other physical location street address is Fieldstone Investment Corporation,
11000 Broken Land Parkway, Suite 600, Columbia, Maryland 21044, and its
government issued identification number is 54-1873198.  In connection with any federal, state or
local laws requiring financial institutions to obtain, verify and record
information that identifies each person or entity who opens an account, the
Owner Trustee may request, and the Seller and the Depositor agree to promptly
provide to the Owner Trustee, copies of documentation which substantiates the
identity of the Depositor or the Seller, as applicable.  Such documentation may include, but is not
limited to, financial statements, government licenses, certified copies of
formation documents or identification documentation of principals claiming to
represent such party.

 

ARTICLE XI

OFFICERS

 

Section 11.01.        Appointment of Officers.  The Trust may have
one or more Officers who are hereby empowered to take and are responsible for
performing all ministerial duties on behalf of the Trust pursuant to this
Agreement and the other Operative Agreements, including, without limitation,
the execution of the Officers’ Certificate (as defined in the Indenture), the
Trust Order (as defined in the Indenture), the Trust Request (as defined in the
Indenture), the annual compliance report required under Section 3.09 of
the Indenture, and any annual reports, documents and other reports which the
Trust is required to file with the Securities and Exchange Commission pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934, as
amended.  Each of the Chairman of the
Board, the Chief Executive Officer, the President, each Senior Vice President
and each Vice President of the Depositor is hereby appointed as an Officer of
the Trust.  The Depositor shall promptly
deliver to the Owner Trustee and the Indenture Trustee a list of its officers
who shall become the Officers of the Trust pursuant to this Section 11.01.

 

Section 11.02.        Officers to Provide Information to the Owner Trustee.  It shall be the duty of each Officer to keep
the Owner Trustee reasonably and promptly informed as to material events
relating to the Trust, including, without limitation, all claims pending or
threatened

 

33

 

against the Trust, the purchase and sale of
any material portion of the Trust Estate and the execution by such Officer on
behalf of the Trust of any material agreements or instruments.

 

34

 

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

 

	
   

  	
  FIELDSTONE MORTGAGE INVESTMENT

  
	
   

  	
  CORPORATION,

  
	
   

  	
  as Depositor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [

  	
   

  	
  ],

  
	
   

  	
  not in its individual capacity but solely
  as

  
	
   

  	
  Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [

  	
   

  	
  ],

  
	
   

  	
  not in its individual capacity but solely
  as Trust

  
	
   

  	
  Administrator

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

Acknowledged and Agreed, solely

for purposes of Sections 2.11, 7.01, 7.02 and 10.13:

 

	
  FIELDSTONE INVESTMENT CORPORATION

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

EXHIBIT A

 

FORM OF CERTIFICATES

 

Exhibit A to

Amended and Restated Trust Agreement

(Exhibit 4.4)

 

THIS OWNERSHIP CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES
LAWS OF ANY STATE.  THIS OWNERSHIP
CERTIFICATE MAY BE DIRECTLY OR INDIRECTLY OFFERED OR SOLD OR OTHERWISE DISPOSED
OF (INCLUDING PLEDGED) BY THE HOLDER HEREOF ONLY TO (A) A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE ACT, IN A TRANSACTION
THAT IS REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR THAT
IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT PURSUANT TO RULE 144A
OR (B) AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (A)(1), (2),
(3) OR (7) OF RULE 501 UNDER THE ACT THAT IS ACQUIRING THE OWNERSHIP
CERTIFICATE FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL “ACCREDITED
INVESTOR,” FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE
IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE ACT.  NO PERSON IS OBLIGATED TO REGISTER THIS
OWNERSHIP CERTIFICATE UNDER THE ACT OR ANY STATE SECURITIES LAWS.

 

THIS CERTIFICATE MAY NOT BE ACQUIRED BY A TRANSFEREE FOR, OR ON BEHALF
OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT THAT IS SUBJECT TO
SECTION 406 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED (“ERISA”), SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE “CODE”) OR ANY SUBSTANTIALLY SIMILAR LAW, OR ANY ENTITY DEEMED TO
HOLD THE PLAN ASSETS OF THE FOREGOING. 
EACH INVESTOR IN THIS CERTIFICATE WILL BE DEEMED TO MAKE THE FOREGOING
REPRESENTATIONS AND WILL FURTHER BE DEEMED TO REPRESENT, WARRANT AND COVENANT
THAT IT WILL NOT SELL, PLEDGE OR OTHERWISE TRANSFER THIS CERTIFICATE IN
VIOLATION OF THE FOREGOING.

 

THIS OWNERSHIP CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR
OBLIGATION OF THE DEPOSITOR, THE MASTER SERVICER, THE INDENTURE TRUSTEE, THE
OWNER TRUSTEE, THE TRUST ADMINISTRATOR OR ANY OF THEIR RESPECTIVE AFFILIATES,
EXCEPT AS EXPRESSLY PROVIDED IN THE TRUST AGREEMENT OR THE OTHER OPERATIVE
AGREEMENTS.

 

THIS OWNERSHIP CERTIFICATE IS SUBORDINATE IN RIGHT OF PAYMENT AS
DESCRIBED IN THE TRANSFER AND SERVICING AGREEMENT REFERRED TO HEREIN.

 

 

NO TRANSFER OF THIS OWNERSHIP CERTIFICATE SHALL BE MADE UNLESS THE
CERTIFICATE REGISTRAR SHALL HAVE RECEIVED AN AFFIDAVIT FROM THE PROPOSED
TRANSFEREE IN WHICH THE PROPOSED TRANSFEREE DECLARES THAT IT IS A REAL ESTATE
INVESTMENT TRUST (A “REIT”) WITHIN THE MEANING OF SECTIONS 856 AND 857 OF THE
CODE OR A QUALIFIED REIT SUBSIDIARY WITHIN THE MEANING OF SECTION 856(i)
OF THE CODE.  MOREOVER, ANY ATTEMPTED
TRANSFER OF THIS OWNERSHIP CERTIFICATE TO A PERSON OTHER THAN A REIT OR A
QUALIFIED REIT SUBSIDIARY SHALL BE VOID AB INITIO AND THE PURPORTED TRANSFEREE SHALL ACQUIRE NO
RIGHTS IN THIS OWNERSHIP CERTIFICATE.

 

A-2

 

FIELDSTONE MORTGAGE INVESTMENT TRUST, SERIES
2005-[    ]

 

	
  Certificate No. 1

  	
   

  	
  Percentage Interest: 100%

  

 

First Payment Date:  [                    ]
2005

 

Evidencing a fractional undivided equity interest in the Trust Estate,
the property of which consists primarily of the Collateral in Fieldstone
Mortgage Investment Trust, Series 2005-[    ] (the “Trust”),
a Delaware statutory trust formed by Fieldstone Mortgage Investment
Corporation, a Maryland corporation, as depositor (the “Depositor”), pursuant
to the Agreement referred to below.

 

This certifies that FIELDSTONE
MORTGAGE OWNERSHIP CORP. is the registered owner of the Percentage
Interest referred to above.

 

The Trust was created pursuant to a Trust Agreement (the “Agreement”)
dated as of [                    ],
2005, between the Depositor and [                                         ],
as owner trustee (the “Owner Trustee,” which term includes any successor entity
under the Agreement), as amended and restated as of [                    ],
2005, among the Depositor, the Owner Trustee and [                                         ],
as trust administrator (the “Trust Administrator”), a summary of certain of the
pertinent provisions of which is set forth hereinafter.  This Ownership Certificate is issued under
and is subject to the terms, provisions and conditions of the Agreement, to
which Agreement the Holder of this Ownership Certificate by virtue of the
acceptance hereof assents and by which such Holder is bound, and the Transfer
and Servicing Agreement dated as of [                    ],
2005 (as amended or supplemented from time to time, the “Transfer and Servicing
Agreement”), by and among the Trust, the Depositor, [                                         ],
as trust administrator (in such capacity, the “Trust Administrator”) and master
servicer (in such capacity, the “Master Servicer”), Fieldstone Servicing
Corporation, as servicer, [                                         ],
as subservicer, Fieldstone Investment Corporation, as seller, and [                                         ],
as indenture trustee (the “Indenture Trustee”). 
Distributions on this Ownership Certificate shall be made by the Trust
Administrator, in its capacity of Certificate Paying Agent under the Agreement
and the Transfer and Servicing Agreement.

 

This Ownership Certificate is issued under the Agreement to which
reference is hereby made for a statement of the respective rights thereunder of
the Depositor, the Owner Trustee and the Holder of the Ownership Certificate
and the terms upon which the Ownership Certificate is executed and
delivered.  All terms used in this
Ownership Certificate which are defined in the Agreement shall have the
meanings assigned to them in the Agreement. 
The Trust Estate consists of the Collateral in the Fieldstone Mortgage
Investment Trust, Series 2005-[    ].  To the extent not otherwise defined herein,
capitalized terms used herein have the meanings assigned to such terms in the
Agreement or the Transfer and Servicing Agreement.  The rights of the Holder are subordinated to
the rights of the Noteholders, as set forth in the Indenture dated as of [                    ],
2005, among the Trust, Trust Administrator and the Indenture Trustee.

 

 

There will be distributed on the 25th day of each month or,
if such 25th day is not a Business Day, the next Business Day (each,
a “Payment Date”), commencing in [                    ]
2005, to the Holder at the close of business on the last Business Day of the
month preceding the month of such Payment Date (the “Record Date”), the amount
to be distributed to Holder on such Payment Date, all as described in the
Transfer and Servicing Agreement.

 

The Holder, by its acceptance of this Ownership Certificate, agrees
that it will look solely to the funds on deposit in the Collection Account that
have been released from the lien of the Indenture for payment hereunder and
that neither the Owner Trustee, the Trust Administrator or the Certificate
Paying Agent in their individual capacities nor the Depositor is personally
liable to the Holder for any amount payable under this Ownership Certificate or
the Agreement or, except as expressly provided in the Agreement, subject to any
liability under the Agreement.

 

The Holder acknowledges and agrees that its rights to receive
distributions in respect of this Ownership Certificate are subordinated to the
rights of the Noteholders as described in the Indenture.

 

The Depositor and the Holder, by acceptance of an Ownership
Certificate, agree to treat, and to take no action inconsistent with the treatment
of, the Ownership Certificate for federal, state and local income tax purposes
as an equity interest in the Trust.

 

The Holder, by its acceptance of an Ownership Certificate, covenants
and agrees that it will not at any time institute against the Depositor or the
Trust, or join in any institution against the Depositor or the Trust of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States federal or state bankruptcy or
similar law in connection with any obligations relating to the Ownership
Certificate, the Notes, the Agreement or any other of the Operative Agreements.

 

Distributions on this Ownership Certificate will be made as provided in
the Agreement by the Certificate Paying Agent by wire transfer or check mailed
to the Holder without the presentation or surrender of this Ownership
Certificate or the making of any notation hereon.  Except as otherwise provided in the Agreement
and notwithstanding the above, the final distribution on this Ownership
Certificate will be made after due notice by the Certificate Paying Agent of
the pendency of such distribution and only upon presentation and surrender of
this Ownership Certificate at the office or agency maintained by the Certificate
Registrar for that purpose.

 

Reference is hereby made to the further provisions of this Ownership
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.

 

Unless the certificate of authentication hereon shall have been
executed by an authorized officer of the Owner Trustee, or an authenticating
agent by manual signature, this Ownership Certificate shall not entitle the
Holder hereof to any benefit under the Agreement or be valid for any purpose.

 

THIS OWNERSHIP CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS

 

A-2

 

CONFLICT OF LAWS PROVISIONS, AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE
WITH SUCH LAWS.

 

A-3

 

IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not
in its individual capacity, has caused this Ownership Certificate to be duly executed.

 

FIELDSTONE MORTGAGE INVESTMENT TRUST, SERIES 2005-[    ]

 

 

	
   

  	
  By: 

  	
  [

  	
   

  	
  ],

  
	
   

  	
  not in its individual capacity but solely
  as Owner

  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  	
   

  
								

 

CERTIFICATE OF AUTHENTICATION

 

This is the Ownership Certificate referred to
in the within-mentioned Trust Agreement.

 

	
   

  	
  [

  	
   

  	
  ],

  
	
   

  	
  not in its individual capacity but solely
  as Trust

  Administrator

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  	
   

  
							

 

A-4

 

FIELDSTONE
MORTGAGE INVESTMENT TRUST, SERIES 2005-[    ], OWNERSHIP
CERTIFICATE

 

The Ownership Certificate does not represent an obligation of, or an
interest in, the Depositor, the Master Servicer, the Indenture Trustee, the
Owner Trustee, the Trust Administrator, the Bank or any Affiliates of any of
them and no recourse may be had against any such parties or their assets,
except as expressly set forth or contemplated herein or in the Agreement or the
other Operative Agreements.  In addition,
this Ownership Certificate is not guaranteed by any governmental agency or
instrumentality and is limited in right of payment to certain collections and
recoveries with respect to the Collateral, all as more specifically set forth
herein.  A copy of the Agreement may be
examined by any Certificateholder upon written request during normal business
hours at the principal office of the Depositor and at such other places, if
any, designated by the Depositor.

 

The Agreement permits the amendment thereof as specified below,
provided that any amendment be accompanied by an Opinion of Counsel to the
effect that such amendment complies with the provisions of the Agreement and
would not cause the Trust to be subject to an entity level tax.  If the purpose of the amendment is to correct
any mistake, eliminate any inconsistency, cure any ambiguity or deal with any
matter not covered, it shall not be necessary to obtain the consent of any
Noteholder or the Indenture Trustee.  If
the purpose of the amendment is to add or eliminate or change any provision of
the Agreement, other than as specified in the preceding sentence, the amendment
shall require the consent of the Holder, the consent of Noteholders evidencing
more than 662/3% of the Outstanding Balance of the Notes and the
Indenture Trustee; provided, however,
that no such amendment shall, as evidenced by an Opinion of Counsel, adversely
affect the tax status of the Trust; and provided,
further, that no such amendment shall (a) increase or reduce in any
manner the amount of, or accelerate or delay the timing of, collections of
payments on the Collateral or distributions that shall be required to be made
for the benefit of the Noteholders or the Holder or (b) reduce the aforesaid
percentage of the Outstanding Balance of the Notes required to consent to or to
waive the requirement for the Holder to consent to any such amendment, in
either case of clause (a) or (b) without the consent of the holders of all the
outstanding Notes and the Holder.

 

As provided in the Agreement and subject to certain limitations therein
set forth, including the limitations set forth in Section 3.03 thereof,
the transfer of this Ownership Certificate is registerable in the Certificate
Register upon surrender of this Ownership Certificate for registration of
transfer at the offices or agencies of the Certificate Registrar, accompanied
by a written instrument of transfer in form satisfactory to the Certificate
Registrar duly executed by the Holder hereof or such Holder’s attorney duly
authorized in writing, and thereupon a new Ownership Certificate will be issued
to the designated transferee.  The
initial Certificate Registrar appointed under the Agreement is the Trust
Administrator.

 

Except as provided in the Agreement, the Ownership Certificate is
issuable only in a minimum Percentage Interest of 100%.  No service charge will be made for any such
registration of transfer or exchange, but the Owner Trustee or the Certificate
Registrar may require payment of a sum sufficient to cover any tax or
governmental charge payable in connection therewith or any expense incurred
thereby.

 

A-5

 

The Owner Trustee, the Certificate Paying Agent, the Trust
Administrator, the Certificate Registrar and any agent of the Owner Trustee,
the Certificate Paying Agent, the Trust Administrator or the Certificate
Registrar may treat the Holder as the owner hereof for all purposes, and none
of the Owner Trustee, the Certificate Paying Agent, the Trust Administrator,
the Certificate Registrar or any such agent shall be affected by any notice to
the contrary.

 

The obligations and responsibilities created by the Agreement and the
Trust created thereby shall terminate upon the payment to Certificateholders of
all amounts required to be paid to them pursuant to the Trust Agreement and the
Transfer and Servicing Agreement and the disposition of all property held as
part of the Trust Estate.

 

A-6

 

ASSIGNMENT

 

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

 

 

 

(Please print or type name and address, including postal zip code, of
assignee and social security number or employer identification number)

 

 

the within Certificate stating in the names of the undersigned in the
Securities Register and does hereby irrevocably constitute and appoint

 

 

to transfer such Certificate in such Securities Register of the Trust.

 

I [we] further direct the Securities
Registrar to issue a new Certificate of the same Class of like principal to the
above-named assignee and deliver such Certificate to the following address:

 

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
  Signature by or on behalf of Assignor

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Authorized Officer

  	
   

  
	
   

  	
  Signature Guaranteed

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name of Institution

  	
  NOTICE: The signature(s) of this assignment
  must correspond with the name(s) on the face of this Certificate without
  alteration or any change whatsoever. The signature must be guaranteed by a
  participant in the Securities Transfer Agents Medallion Program, the New York
  Stock Exchange Medallion Signature Program or the Stock

  
					

 

A-7

 

	
   

  	
  Exchanges Medallion Program. Notarized or
  witnessed signatures are not acceptable as guaranteed signatures.

  

 

A-8

 

DISTRIBUTION
INSTRUCTIONS

 

The assignee should include the following for the information of the
Securities Registrar.  Distributions
shall be made by wire transfer in immediately available funds to

 

 

for the account of                                                                                               

 

account number                            
or, if mailed by check, to                                                                                                                            

 

                                                                                                                           .

 

Applicable reports and statements should be mailed to                                                    

 

                                                                                              .

 

This information is provided by                                                                       

 

the assignee named above, or                                                                       
as its agent.

 

A-9

 

EXHIBIT B

 

[RESERVED]

 

B-1

 

EXHIBIT C

 

FORM OF CERTIFICATE OF TRUST OF

FIELDSTONE MORTGAGE INVESTMENT TRUST, SERIES 2004-5

 

THIS Certificate of Trust of Fieldstone Mortgage Investment Trust,
Series 2004-5 (the “Trust”), is being duly executed and filed by the
undersigned, as trustee, to form a statutory trust under the Delaware Statutory
Trust Act (12 DEL. CODE, Sections 3801 et seq.) (the “Act”).

 

1.             NAME.   The name of the statutory trust formed
hereby is “FIELDSTONE MORTGAGE INVESTMENT TRUST, SERIES 2005-[    ].”

 

2.             DELAWARE
TRUSTEE.  The name and business address
of the trustee of the Trust in the State of Delaware are [                                                      ].

 

3.             EFFECTIVE DATE.  This Certificate of Trust shall be effective
on [          ], 2005.

 

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

 

	
   

  	
  [

  	
   

  	
  ],

  
	
   

  	
  as Owner Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
						

 

C-1

 

EXHIBIT D-1

 

FORM OF RULE 144A INVESTMENT LETTER

 

 

	
   

  	
   

  
	
   

  	
  Date

  
	
   

  	
   

  
	
  [

  	
   

  	
  ],

  	
   

  
	
  as Certificate Registrar

  	
   

  
	
   

  	
   

  
	
  [

  	
   

  	
  ]

  	
   

  
	
  [

  	
   

  	
  ]

  	
   

  
	
   

  	
   

  
	
  Attention: Corporate Trust
  Department

  	
   

  
	
   

  	
   

  
	
  Re:

  	
  Fieldstone Mortgage Investment
  Trust, Series 2005-[    ]

  	
   

  
	
   

  	
  [Ownership Certificate]

  	
   

  
							

 

Ladies and Gentlemen:

 

In connection with our acquisition of the Fieldstone Mortgage
Investment Trust, Series 2005-[__] Ownership Certificate (the “Certificate”),
we certify that (a) we understand that the Certificate has not been registered
under the Securities Act of 1933, as amended (the “Act”), or any state
securities laws and is 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 investment in the Certificate,
(c) we have had the opportunity to ask questions of and receive answers from
Fieldstone Mortgage Investment Corporation (the “Depositor”) concerning the
purchase of the Certificate and all matters relating thereto or any additional
information deemed necessary to our decision to purchase the Certificate, (d)
we have not, nor has anyone acting on our behalf, offered, transferred,
pledged, sold or otherwise disposed of the Certificate or any interest in the
Certificate, or solicited any offer to buy, transfer, pledge or otherwise
dispose of the Certificate or any interest in the Certificate from 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 Certificate under the Act or that would render the
disposition of the Certificate a violation of Section 5 of the Act or any
state securities laws or require registration pursuant thereto, and we will not
act, or authorize any person to act, in such manner with respect to the
Certificate and (e) we are a “qualified institutional buyer” as that term is
defined in Rule 144A under the Act (“Rule 144A”).  We are aware that the sale to us is being
made in reliance on Rule 144A.

 

We are acquiring the Certificate for our own account or for resale
pursuant to Rule 144A and understand that such Certificate may be resold,
pledged or transferred only (1) 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

 

D-1-1

 

transfer is being made in reliance on Rule
144A or (2) pursuant to another exemption from registration under the Act.

 

In addition, we hereby certify that we are not an employee benefit plan
or other retirement arrangement that is subject to Section 406 of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or to Section 4975
of the Internal Revenue Code of 1986, as amended (or to any other substantially
similar law) or any entity deemed to hold the plan assets of the foregoing.

 

We hereby acknowledge that under the terms of the Amended and Restated
Trust Agreement among Fieldstone Mortgage Investment Corporation, as Depositor,
[                                                ],
as Owner Trustee, and [                                                ],
as Trust Administrator, dated as of [                    ],
2005, no transfer of the Certificate shall be permitted to be made to any
person unless the Certificate Registrar has received a certificate from such
transferee in the form hereof.

 

We hereby indemnify the Depositor, Certificate Registrar and the Owner
Trustee against any liability that may result to either of them if our transfer
or other disposition of the Certificate (or any interest therein) is not exempt
from the registration requirements of the Act and any applicable state
securities laws or is not made in accordance with such federal and state laws.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Transferee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

D-1-2

 

EXHIBIT D-2

 

FORM OF NON-RULE 144A INVESTMENT LETTER

 

	
   

  	
   

  
	
   

  	
  Date

  
	
   

  	
   

  
	
  [

  	
   

  	
  ],

  	
   

  
	
  as Certificate Registrar

  	
   

  
	
  [

  	
   

  	
  ]

  	
   

  
	
  [

  	
   

  	
  ]

  	
   

  
							

 

Attention: 
Corporate Trust Department

 

	
  Re:

  	
  Fieldstone Mortgage Investment
  Trust, Series 2005-[    ]5

  
	
   

  	
  [

  	
  Ownership Certificate]

  	
   

  

 

Ladies and Gentlemen:

 

In connection with our acquisition of the Fieldstone Mortgage
Investment Trust, Series 2005-[__]5 Ownership Certificate (the “Certificate”)
we certify that (a) we understand that the Certificate has not been registered
under the Securities Act of 1933, as amended (the “Act”), or any state
securities laws and is being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we are an “accredited
investor,” as defined in Rule 501(a)(1), (2), (3) or (7) under the Act, and
have such knowledge and experience in financial and business matters that we
are capable of evaluating the merits and risks of investment in the
Certificate, (c) we have had the opportunity to ask questions of and receive
answers from the Depositor concerning the purchase of the Certificate and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Certificate, (d) we are acquiring the Certificate for
investment for our own account and not with a view to any distribution of such
Certificate (but without prejudice to our right at all times to sell or
otherwise dispose of the Certificate in accordance with clause (f) below), (e)
we have not offered or sold any Certificate to, or solicited offers to buy any
Certificate from, any person, or otherwise approached or negotiated with any
person with respect thereto, or taken any other action that would result in a
violation of Section 5 of the Act or any state securities laws and (f) we
will not sell, transfer or otherwise dispose of any Certificate unless (1) such
sale, transfer or other disposition is made pursuant to an effective
registration statement under the Act and in compliance with any relevant state
securities laws or is exempt from such registration requirements and, if
requested, we will at our expense provide an opinion of counsel satisfactory to
the addressees of this certificate that such sale, transfer or other
disposition may be made pursuant to an exemption from the Act, (2) the
purchaser or transferee of such Certificate has executed and delivered to you a
certificate to substantially the same effect as this certificate and (3) the
purchaser or transferee has otherwise complied with any conditions for transfer
set forth in the Amended and Restated Trust Agreement dated as of [                    ],
2005, among Fieldstone Mortgage Investment Corporation, as Depositor, [                                                ],

 

D-2-1

 

as Owner Trustee and [                                                ],
as Trust Administrator (the “Trust Agreement”).

 

In addition, we hereby certify that we are not an employee benefit plan
or other retirement arrangement subject to section 406 of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), or to Section 4975
of the Internal Revenue Code of 1986, as amended (or to any other substantially
similar law) or any entity deemed to hold the plan assets of the foregoing.

 

We hereby acknowledge that under the terms of the Trust Agreement, no
transfer of the Certificate shall be permitted to be made to any person unless
the Certificate Registrar has received a certificate from such transferee in
the form hereof.

 

We hereby indemnify the Owner Trustee, the Depositor and the
Certificate Registrar against any liability that may result to either of them
if our transfer or other disposition of the Certificate (or any interest
therein) is not exempt from the registration requirements of the Act and any
applicable state securities laws or is not made in accordance with such federal
and state laws.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Transferee]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

D-2-2

 

EXHIBIT E

 

[Name and Address of Owner Trustee]

 

[Name and Address of Trust Administrator]

 

Re:  Fieldstone Mortgage Investment Trust,
Series 2005-[    ]

 

Ladies and Gentlemen:

 

This representation and warranty is delivered pursuant to Section 3.03
of the Amended and Restated Trust Agreement dated as of [                    ],
2005 (the “Agreement”), among Fieldstone Mortgage Investment Corporation, as
depositor (the “Depositor”), [                                                ],
as owner trustee (the “Owner Trustee”) and [                                                ],
as trust administrator (the “Trust Administrator”), in connection with the
transfer by Fieldstone Mortgage Investment Trust, Series 2005-[__] (the “Trust”)
to the undersigned as beneficial owner (the “Beneficial Owner”) of a 100%
Percentage Interest in the Ownership Certificate. Capitalized terms used but
not defined in this document have the meanings ascribed to them in the
Agreement.

 

The Beneficial Owner hereby certifies that it has received a copy of
the Agreement and that it understands the restrictions on transferability of
the Ownership Certificate and the indemnity provisions set forth in Section 3.03
of the Agreement.  In connection with the
transfer of the Ownership Certificate to the Beneficial Owner, the Beneficial
Owner represents and warrants that:

 

(1)           The Beneficial Owner
either (i) qualifies for taxation as a real estate investment trust (a “REIT”)
within the meaning of Sections 856 and 857 of the Internal Revenue Code of
1986, as amended (the “Code”) or (ii) is a qualified REIT subsidiary within the
meaning of Section 856(i) of the Code.

 

(2)           The Beneficial Owner
hereby agrees to be subject to the indemnification provisions set out in Section 3.03
of the Agreement.

 

(3)           The Beneficial Owner
hereby agrees to be subject to the provisions governing events of default set
out in the Indenture among the Trust, as issuer, [                                                ],
as Trust Administrator and [                                                ],
as indenture trustee, dated as of [                    ],
2005.

 

(4)           The Beneficial Owner
hereby agrees to notify the Trust within sixty (60) days of the date on which
the Beneficial Owner discovers that it has failed to qualify as a REIT or as a
qualified REIT subsidiary at any time at which the Beneficial Owner owns the
Ownership Certificate.

 

(5)           The Beneficial Owner is
not, and on [                    ],
2005, will not be, an employee benefit plan or other retirement arrangement
subject to Section 406 of

 

E-1

 

the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
or Section 4975 of the Code or any substantially similar applicable law
(collectively, a “Plan”) or a person acting on behalf of any such Plan or
investing the assets of any such Plan to acquire the Ownership Certificate.

 

(6)           The Beneficial Owner
hereby acknowledges that under the terms of the Agreement, no transfer of the
Ownership Certificate shall be permitted to be made to any person unless the
Certificate Registrar has received a certificate from such transferee to thee
effect that such transferee is not a Plan and is not using the assets of any
Plan to acquire the Ownership Certificate.

 

(7)           The Beneficial Owner
will not transfer the Ownership Certificate to any person or entity (i) as to
which the Purchaser has reason to believe does not satisfy the requirements set
forth in this affidavit, and (ii) without obtaining from the prospective
Purchaser an affidavit substantially in this form and providing to the
Certificate Registrar a written statement substantially in the form of Exhibit
F to the Agreement.

 

(8)           The Holder of the
Ownership Certificate will not take any action or inaction that would cause the
Trust to be subject to any United States federal income taxation.

 

[SIGNATURE PAGE FOLLOWS]

 

E-2

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  FIELDSTONE MORTGAGE OWNERSHIP

  CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

E-3

 

EXHIBIT F

 

FORM OF REPRESENTATION AND WARRANTY REGARDING TRANSFEREE’S

STATUS AS A REIT OR QUALIFIED REIT SUBSIDIARY

 

This representation and warranty is delivered pursuant to Section 3.03
of the Trust Agreement dated as of [                    ],
2005 (the “Agreement”), among Fieldstone Mortgage Investment Corporation, as
depositor (the “Depositor”), [                                                ],
as owner trustee (the “Owner Trustee”), and [                                                ],
as trust administrator (the “Trust Administrator”), in connection with the
transfer by [Fieldstone Mortgage Investment Trust, Series 2005-[    ]
(the “Trust”), to the undersigned] [the [transferor] to the undersigned] as
beneficial owner (the “Beneficial Owner”) of a 100% Percentage Interest in the
Ownership Certificate.  Capitalized terms
used but not defined in this document have the meanings ascribed to them in the
Agreement.

 

The Beneficial Owner hereby certifies that it has received a copy of
the Agreement and that it understands the restrictions on transferability of
the Ownership Certificate set forth in Section 3.03 of the Agreement and
the indemnity provisions set forth in Section 7.02 of the Agreement.  In connection with the transfer of the
Ownership Certificate to the Beneficial Owner, the Beneficial Owner represents
and warrants that:

 

(1)           The Beneficial Owner
either (i) qualifies for taxation as a real estate investment trust (a “REIT”)
within the meaning of Sections 856 and 857 of the Internal Revenue Code of
1986, as amended (the “Code”) or (ii) is a qualified REIT subsidiary within the
meaning of Section 856(i) of the Code (a “Qualified REIT Subsidiary”).

 

(2)           The Beneficial Owner
hereby agrees to be subject to the indemnification provisions set out in Section 7.02
of the Agreement, and hereby warrants that the Beneficial Owner shall indemnify
the Trust for any income tax imposed upon the Trust due to the Beneficial Owner’s
failure to qualify as a REIT or as a Qualified REIT Subsidiary at any time at
which such Beneficial Owner owns the Ownership Certificate.

 

(3)           The Beneficial Owner
hereby agrees to be subject to the provisions governing events of default set
out in the Indenture among Fieldstone Mortgage Investment Trust, Series 2005-[    ]
(the “Trust”), as issuer, [                                                ],
as trust administrator and [                                                ],
as indenture trustee, dated as of [                    ],
2005.

 

(4)           The Beneficial Owner
hereby agrees to notify the Trust within sixty (60) days of the date on which
the Beneficial Owner discovers that it has failed to qualify as a REIT or as a
Qualified REIT Subsidiary at any time at which the Beneficial Owner owns the
Ownership Certificate.

 

(5)           The Beneficial Owner is
not, and on                     
[date of transfer] will not be, an employee benefit plan or other retirement
arrangement subject to Section 406

 

F-1

 

of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
or Section 4975 of the Code or any substantially similar applicable law
(collectively, a “Plan”) or a person acting on behalf of any such Plan or
investing the assets of any such Plan to acquire the Ownership Certificate.

 

(6)           The Beneficial Owner
hereby acknowledges that under the terms of the Agreement, no transfer of the
Ownership Certificate shall be permitted to be made to any person unless the
Certificate Registrar has received a certificate from such transferee to the
effect that such transferee (i) is not a Plan and is not using the assets of
any Plan to acquire the Ownership Certificate and (ii) is a REIT or a Qualified
REIT Subsidiary.

 

(7)           The Beneficial Owner
will not transfer the Ownership Certificate to any person or entity (i) as to
which the Purchaser has reason to believe does not satisfy the requirements set
forth in this affidavit, and (ii) without obtaining from the prospective
Purchaser an affidavit substantially in this form and providing to the
Certificate Registrar a written statement substantially in the form of Exhibit
F to the Agreement.

 

(8)           The Holder of the
Ownership Certificate will not take any action or inaction that would cause the
Trust to be subject to any United States federal income taxation.

 

F-2

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