Document:

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                                                                 EXHIBIT 4.12(b)

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                               SERIES 2000-1 A-RI
                         SUPPLEMENTAL ISSUANCE AGREEMENT

                           DATED AS OF AUGUST 16, 2000

                                       TO

                         POOLING AND SERVICING AGREEMENT

                         DATED AS OF SEPTEMBER 24, 1993

                                      AMONG

                        GAYLORD RECEIVABLES CORPORATION,
                                AS THE TRANSFEROR

                         GAYLORD CONTAINER CORPORATION,
                             AS THE INITIAL SERVICER

                                       AND

                     MANUFACTURERS AND TRADERS TRUST COMPANY
                                 AS THE TRUSTEE

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                                  $125,000,000

                        GAYLORD RECEIVABLES MASTER TRUST
                         SERIES 2000-1 A-RI CERTIFICATE

                                                 Series 2000-1 A-RI Supplemental
                                                              Issuance Agreement

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                                TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----

                                    ARTICLE I
                                   DEFINITIONS

SECTION  1.02   Incorporation of Terms and Conditions
                of Pooling and Servicing Agreement.............................3

                                   ARTICLE II
                             DESIGNATION; HOLDER OF
                         SERIES 2000-1 A-RI CERTIFICATE

SECTION  2.01   Designation....................................................3
SECTION  2.02   Collateral Agent as Holder.....................................4

                                   ARTICLE III
                      CONDITIONS TO ISSUANCE OF CERTIFICATE

SECTION  3.01   Conditions to Issuance.........................................4

                                   ARTICLE IV
                               PAYMENTS; MATURITY

SECTION  4.01   Payment of Interest............................................6
SECTION  4.02   Payment of Principal...........................................6
SECTION  4.03   Maturity; Extension of Maturity................................6

                                    ARTICLE V
                            CERTAIN MATTERS RELATING

SECTION  5.01   Class A-RI Initial Invested Amount; Ratable
                Principal Amount...............................................7
SECTION  5.02   Stated Amount of Series 2000-1 A-RI Certificate................7
SECTION  5.03   Increase of the Ratable Principal Amount.......................7
SECTION  5.04   Decrease of the Ratable Principal Amount.......................8
SECTION  5.05   Restrictions on Issuance of Certain Additional Series of
                Investor Certificates..........................................9

                                                 Series 2000-1 A-RI Supplemental
                                       i                      Issuance Agreement

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                                   ARTICLE VI
                                  MISCELLANEOUS

SECTION  6.01   Governing Law..................................................9
SECTION  6.02   Execution in Counterparts......................................9
SECTION  6.03   Effect of Unenforceable Provisions............................10
SECTION  6.04   Reporting Requirements........................................10
SECTION  6.05   Accuracy of Information Memorandum............................10
SECTION  6.06   Liens on Transferred Assets...................................10
SECTION  6.07   Third-Party Beneficiaries.....................................11

                                                Series 2000-1 A-RI Supplemental
                                       ii                    Issuance Agreement

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         THIS SERIES 2000-1 A-RI SUPPLEMENTAL ISSUANCE AGREEMENT, dated as of
August 16, 2000 (this "Agreement"), is made by and among GAYLORD RECEIVABLES
CORPORATION, a Delaware corporation, as Transferor ("GRC"), GAYLORD CONTAINER
CORPORATION, a Delaware corporation (in its individual capacity, "Gaylord"), as
initial Servicer (in such capacity, together with any successor in such
capacity, the "Servicer"), and MANUFACTURERS AND TRADERS TRUST COMPANY, a New
York banking corporation, as Trustee (in such capacity, together with any
successor in such capacity, the "Trustee").

                                   BACKGROUND:

         1. Pursuant to the Pooling and Servicing Agreement, dated as of
September 24, 1993 (as heretofore amended and as further amended, supplemented
or otherwise modified from time to time and as supplemented hereby, the "Pooling
and Servicing Agreement"), among GRC, the Servicer and the Trustee, GRC may from
time to time direct the Trustee to cause the Trust to issue one or more series
of Class A-RI Certificates representing certain beneficial interests in the
Trust.

         2. Pursuant to this Agreement, GRC and the Trustee shall hereby create
a Series 2000-1 of Class A-RI Certificates and specify certain terms thereof
herein.

                                    ARTICLE I
                                   DEFINITIONS

         SECTION 1.01 Definitions. (a) Capitalized terms that are used herein
but are not defined have the meanings that Appendix A to the Pooling and
Servicing Agreement ascribes to such terms. Terms set forth in clause (b) below
that also appear in such Appendix A shall, for purposes of Series 2000-1, have
the meanings set forth below.

         (b) Whenever used in this Agreement, the following words and phrases
shall have the following meanings:

         "Certificate Issuance Date" means August 16, 2000.

         "Closing Date" has the meaning ascribed thereto in the Revolving Credit
Agreement.

         "Collateral Agent" has the meaning ascribed thereto in the Revolving
Credit Agreement.

         "Commitment Termination Date" has the meaning ascribed thereto in the
Revolving Credit Agreement.

         "Facility Agent" has the meaning ascribed thereto in the Revolving
Credit Agreement.

                                                Series 2000-1 A-RI Supplemental
                                                             Issuance Agreement

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         "First Scheduled Principal Payment Date" has the meaning set forth in
Section 4.02.

         Information Memorandum has the meaning ascribed thereto in the
Revolving Credit Agreement.

         "Lender" has the meaning ascribed thereto in the Revolving Credit
Agreement.

         "Payment Date" means each date specified in the Revolving Credit
Agreement on which interest on the Revolving Loans or any fees, costs, expenses,
indemnities or other amounts (excluding repayments of principal) payable under
the Revolving Credit Agreement are required to be paid.

         "Pay-Out Period Commencement Date" means, with respect to the Series
2000-1 ARI Certificate, the earliest to occur, prior to the Liquidation
Commencement Date, of

         (a)  the Scheduled Pay-Out Commencement Date;

         (b)  if no Liquidation Event or an Unmatured Liquidation Event has
occurred and continued, the Settlement Date specified in a written notice given
by GRC to the Trustee and by the Trustee to the Collateral Agent, as the holder
of the Series 2000-1 ARI Certificate, pursuant to Section 4.03(i) of the Pooling
and Servicing Agreement as the date on which a full or partial prepayment will
commence with respect to the Series 2000-1 ARI Certificate; and

         (c) if a Liquidation Event has occurred, the 10th Business Day after
the date on which the Collateral Agent, at the direction of the Required
Lenders, votes in favor of causing the commencement of the Liquidation Period as
a result of such Liquidation Event, unless such Liquidation Event has been
waived in writing by the Collateral Agent, at the direction of the Required
Lenders, pursuant to this Agreement and the Pooling and Servicing Agreement.

         "Required Lenders" has the meaning ascribed thereto in the Revolving
Credit Agreement.

         "Revolving Commitment" has the meaning ascribed thereto in the
Revolving Credit Agreement.

         "Revolving Credit Agreement" means that certain Revolving Credit
Agreement, dated as of September 24, 1993, as amended and restated as of August
16, 2000, among GRC, various financial institutions parties thereto, as the
lenders, Bankers Trust Company, as the Facility Agent, and LaSalle Bank National
Association, as the Collateral Agent, as the same may be further amended,
supplemented, amended and restated or otherwise modified from time to time.

         "Revolving Loans" means loans made pursuant to the Revolving Credit
Agreement.

                                                 Series 2000-1 A-RI Supplemental
                                       2                      Issuance Agreement

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         "Revolving Notes" has the meaning ascribed thereto in the Revolving
Credit Agreement.

         "Revolving Percentage" has the meaning ascribed thereto in the
Revolving Credit Agreement.

         "Scheduled Pay-Out Commencement Date" means May 1,2005, as such date
may be extended from time to time pursuant to the terms hereof.

         "Security Agreement" has the meaning ascribed thereto in the Revolving
Credit Agreement.

         "Series 2000-1 ARI Certificate" means the Series 2000-1 ARI Certificate
substantially in the form of Exhibit A hereto.

         Summary of Terms has the meaning ascribed thereto in the Revolving
Credit Agreement.

         "Supplemental Interest Payments" has the meaning set forth in Section
4.01.

              (c) As long as the Series 2000-1 ARI Certificate is issued and
outstanding, the term "Amendment Approval Documents," when used in the Revolving
Credit Agreement, the Security Agreement or any of the Revolving Notes or in any
Transaction Document shall include the Revolving Credit Agreement and the
Security Agreement.

              (d) As long as the Series 2000-1 ARI Certificate is issued and
outstanding, the term "Transaction Documents," when used in the Revolving Credit
Agreement, the Security Agreement or any of the Revolving Notes or in any
Transaction Document shall (i) include the Revolving Credit Agreement, the
Security Agreement, the Revolving Notes and all agreements, instruments and
documents executed and delivered or to be executed and delivered in connection
therewith and (ii) exclude the Series 1993-1 A-RI Supplemental Issuance
Agreement and/or the Series 1993-1 A-RI Certificate or any agreement, instrument
or document entered into solely in connection with the Series 1993-1A-RI
Supplemental Issuance Agreement or the Series 1993-1 A-RI Certificate.

         SECTION 1.02. Incorporation of Terms and Conditions of Pooling and
Servicing Agreement. This Agreement hereby incorporates by reference the terms
and provisions of the Pooling and Servicing Agreement (including, without
limitation, the terms and conditions that are applicable to all series of Class
A-RI Certificates) as if such terms and conditions were set forth in full
herein. As supplemented by this Agreement, the Pooling and Servicing Agreement
is hereby in all respects ratified and confirmed and the Pooling and Servicing
Agreement as so supplemented by this Agreement shall be read, taken and
construed as one and the same agreement. In the event of any conflict between
the terms of this Agreement and the terms of the Pooling and Servicing Agreement
or Appendix A thereto, the terms of this Agreement shall control.

                                                Series 2000-1 A-RI Supplemental
                                       3                     Issuance Agreement

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                                   ARTICLE II
                             DESIGNATION; HOLDER OF
                         SERIES 2000-1 A-RI CERTIFICATE

         SECTION 2.01 Designation. There is hereby created a series of Class
A-RI Certificates to be issued pursuant to the Pooling and Servicing Agreement
and this Agreement and to be known as the "Series 2000-1 A-RI Certificate."
Subject to the terms and conditions set forth in Article III, the Trustee shall
authenticate and deliver the Series 2000-1 A-RI Certificate to GRC in the manner
and at the times specified in Article VI of the Pooling and Servicing Agreement.

         SECTION 2.02 Collateral Agent as Holder. Upon the delivery of the
Series 2000-1 A-RI Certificate by the Trustee to GRC, GRC shall deliver the
Series 2000-1 A-RI Certificate to the Collateral Agent. The parties hereto
hereby acknowledge and agree that the Collateral Agent, as agent for the
Lenders, will hold the Series 2000-1 A-RI Certificate as collateral for the
obligations of GRC under or in connection with the Revolving Credit Agreement,
the Revolving Notes and the Security Agreement. The Lenders shall, subject to
the terms and conditions set forth in the Revolving Credit Agreement, provide
their respective Revolving Percentages of Revolving Loans to the Facility Agent
for delivery to GRC. The Collateral Agent, as the holder of the Series 2000-1
A-RI Certificate, shall be deemed to have provided such funds to GRC in respect
of the Series 2000-1 A-RI Certificate pursuant to the terms and subject to the
conditions set forth in this Agreement and the Pooling and Servicing Agreement
upon GRC's receipt of the funds from the Facility Agent (on behalf of the
Lenders). Notwithstanding the fact that GRC is the owner of the Series 2000-1
A-RI Certificate, the Collateral Agent shall exercise, at the direction of the
Lenders given pursuant to the Revolving Credit Agreement, all rights with
respect to the Series 2000-1 A-RI Certificate (including, without limitation,
(i) the right to receive all distributions made on the Series 2000-1 A-RI
Certificate pursuant to the Pooling and Servicing Agreement and (ii) the right
to vote on all matters on which the Holder of the Series 2000-1 A-RI Certificate
is entitled to vote pursuant to the Pooling and Servicing Agreement) as if the
Collateral Agent were the legal and beneficial owner of the Series 2000-1 A-RI
Certificate. When exercising any such rights, the Collateral Agent shall be
deemed to be an Investor Certificateholder for purposes of the Transaction
Documents, it being understood that the Collateral Agent shall hold the Series
2000-1 A-RI Certificate for the benefit of each of the Lenders, the Facility
Agent and itself as collateral security pursuant to the terms (and subject to
the conditions) of the Revolving Credit Agreement and the Security Agreement.

                                  ARTICLE III
                      CONDITIONS TO ISSUANCE OF CERTIFICATE

         SECTION 3.01 Conditions to Issuance. The Trustee will not authenticate
the Series 2000-1 A-RI Certificate to be issued hereunder unless each of the
following conditions has been satisfied:

                                                 Series 2000-1 A-RI Supplemental
                                       4                     Issuance Agreement

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              (a) The Trustee, as assignee of GRC pursuant to Section 2.01 of
the Pooling and Servicing Agreement, shall have received the documentation
described in Section 4.1 of the Purchase Agreement and all of such documentation
shall comply with the requirements of such Section 4.1;

              (b) The Trustee shall have received written notification from S&P
that ultimate payment of principal and timely payment of interest on the Series
2000-1 ARI Certificate to the Collateral Agent for the benefit of the Lenders
shall be rated AAA by S&P;

              (c) The Trustee or its agent shall have received, and shall be
holding in trust pursuant to the Pooling and Servicing Agreement, the Trust
Assets and all documents, instruments and other assets required by the Pooling
and Servicing Agreement to be delivered to the Trustee with respect thereto as
of the Closing Date;

              (d) GRC shall have (i) caused all UCC financing statements
necessary to perfect the interest of the Trustee in the Trust Assets (other than
goods located outside the state of Illinois) to be duly filed in the manner
required by the laws of each appropriate jurisdiction and performed all other
actions required by Sections 2.01, 3.03 and 3.10 of the Pooling and Servicing
Agreement to perfect the interest of the Trustee (for the benefit of the
Certificateholders) in the Trust Assets and (ii) paid, or caused to be paid, all
transfer taxes, documentary stamp taxes and filing fees incurred in connection
therewith;

              (e) The Trustee shall have received certified copies of the
certificate of incorporation and by-laws of GRC, and of all documents evidencing
corporate action taken by the Seller and GRC approving the execution and
delivery of the Transaction Documents to which they are parties and the
consummation of the transactions contemplated thereby;

              (f) The Trustee shall have received (directly or as assignee of
GRC) signature and incumbency certificates executed by the Authorized Officers
of the Seller and GRC certifying the identities and signatures of those officers
who executed the Transaction Documents to which they are parties;

              (g) The Trustee shall have received evidence that GRC shall have
paid or shall have made arrangements for payment of all taxes, fees and
governmental charges, if any, due in connection with the execution and delivery
of this Agreement and the Pooling and Servicing Agreement, the issuance of the
Certificates and the assignment and pledge of the Trust Assets to the Trustee
under the Pooling and Servicing Agreement; and

              (h) The Trustee shall have received evidence that the principal
of, interest on and all other amounts payable under the Series 1993-1 A-RI
Certificates have been paid in full and the Series 1993-1 ARI Certificates have
been canceled (or will be canceled contemporaneously with the issuance of the
Series 2000-1 A-R1 Certificate) pursuant to the terms of the Pooling and
Servicing Agreement.

                                                 Series 2000-1 A-RI Supplemental
                                       5                      Issuance Agreement

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                                   ARTICLE IV
                               PAYMENTS; MATURITY

         SECTION 4.01 Payment of Interest. From (and including) the Certificate
Issuance Date, interest will be paid on the outstanding principal of the Series
2000-1 A-RI Certificate in an amount equal to the amount of interest that is
required to be paid from time to time on the Revolving Loans pursuant to the
Revolving Credit Agreement. In addition, whenever fees, costs, expenses,
indemnities or any other amounts (excluding repayments of principal) are
required to be paid under the Revolving Credit Agreement (all of the foregoing
being herein collectively called the "Supplemental Interest Payments"),
additional interest will be paid on the Series 2000-1 A-RI Certificate in an
amount equal to the aggregate amount of Supplemental Interest Payments that are
then required to be paid pursuant to the Revolving Credit Agreement. The rate of
interest on the Series 2000-1 A-RI Certificate shall be a per annum variable
rate which, when multiplied by the then Ratable Principal Amount of the Series
2000-1 A-RI Certificate, will result in an amount to be paid as interest that is
equal to the sum of (x) the amount of interest, plus (y) the aggregate amount of
Supplemental Interest Payments that, in the case of each of the foregoing, are
then required to be paid under the Revolving Credit Agreement. Except as
expressly provided otherwise in this Agreement, interest on the Series 2000-1
A-RI Certificate (including the Supplement Interest Payments, if applicable)
shall accrue on a daily basis for each period from (and including) the preceding
Payment Date to (but excluding) the then-current Payment Date and shall be
payable on each Payment Date in arrears in the order of priority set forth in
Article V of the Pooling and Servicing Agreement, and shall be paid to the
Collateral Agent without set-off or counterclaim.

         SECTION 4.02 Payment of Principal. Except as provided otherwise in this
Agreement, principal payments on the Series 2000-1 A-RI Certificate will
commence on the Settlement Date (the "First Scheduled Principal Payment Date")
that occurs in the month following the Scheduled Pay-Out Commencement Date, and
will be made on each subsequent Settlement Date until the principal amount of
the Series 2000-1 A-RI Certificate has been paid in full; provided, however,
that principal payments with respect to the Series 2000-1 A-RI Certificate may
commence prior to the First Scheduled Principal Payment Date if (a) the
Liquidation Commencement Date has occurred on an earlier date, or (b) a Pay-Out
Period with respect to the Series 2000-1 A-RI Certificate has occurred prior to
the First Scheduled Principal Payment Date as a result of the occurrence of one
of the events described in clause (b) or (c) of the definition of "Pay-Out
Period Commencement Date." Principal payment on the Series 2000-1 A-RI
Certificate shall be made in the order of priority set forth in Article V of the
Pooling and Servicing Agreement, and shall be paid to the Collateral Agent
without set-off or counterclaim.

         SECTION 4.03 Maturity; Extension of Maturity. The stated maturity date
of the Series 2000-1 A-RI Certificate is the one year anniversary of the
Commitment Termination Date. The stated maturity of the Series 2000-1 A-RI
Certificate will be extended if the Scheduled Pay-Out Commencement Date is
extended as provided in this Section 4.03 . During the third month prior

                                                 Series 2000-1 A-RI Supplemental
                                       6                      Issuance Agreement
<PAGE>   10

to each anniversary of the Closing Date (commencing on the third anniversary)
prior to the occurrence of the earlier of (x) the Scheduled Pay-Out Commencement
Date or (y) the Liquidation Commencement Date, GRC may notify the Collateral
Agent that GRC wishes to extend the Scheduled Pay-Out Commencement Date by one
additional year. If the Scheduled Commitment Termination Date is extended
pursuant to Section 3.03 of the Revolving Credit Agreement, then the Collateral
Agent will agree to extend the Scheduled Pay-Out Commencement Date for one
additional year, and the stated maturity of the Series 2000-1 A-RI Certificate
shall also be extended for an additional year.

                                    ARTICLE V
                            CERTAIN MATTERS RELATING
                        TO SERIES 2000-1 A-RI CERTIFICATE

         SECTION 5.01 Class A-RI Initial Invested Amount; Ratable Principal
Amount. The initial Invested Amount of the Series 2000-1 A-RI Certificate is
$75,000,000. The Ratable Principal Amount of the Series 2000-1 A-RI Certificates
is, at any time, the then outstanding principal amount thereof.

         SECTION 5.02 Stated Amount of Series 2000-1 ARI Certificate. (a) The
Stated Amount of the Series 2000-1 A-RI Certificate is $125,000,000 (the "Series
2000-1 A-RI Stated Amount"). The Ratable Principal Amount of the Series 2000-1
A-RI Certificate shall at no time exceed the Series 2000-1 A-RI Stated Amount.

         (b) If, at any time, the Revolving Commitment under the Revolving
Credit Agreement shall be increased, the Series 2000-1 A-RI Stated Amount shall
automatically be increased by a corresponding amount until it equals the amount
of the Revolving Commitment. If, at any time, the Revolving Commitment under the
Revolving Credit Agreement shall be decreased, the Series 2000-1 A-RI Stated
Amount shall automatically be decreased by a corresponding amount until it
equals the amount of the Revolving Commitment, as so reduced.

         SECTION 5.03 Increase of the Ratable Principal Amount. (a) If on any
day GRC allocates a positive Variable Amount or all or part of the Class A-RF
Amount to the Series 2000-1 A-RI Certificate pursuant to Section 4.03(c) of the
Pooling and Servicing Agreement, then: (i) the Ratable Principal Amount of the
Series 2000-1 A-RI Certificates will be deemed to have been increased by such
Variable Amount and/or all or part of the Class A-RF Amount, and (ii) GRC
whereupon shall have the right to request the Lenders, in accordance with the
procedures set forth in (and subject to the limitations of) the Revolving Credit
Agreement, to make Revolving Loans to GRC in an amount not to exceed such
Variable Amount and/or all or part of the Class A-RF Amount; provided, however,
that GRC shall not be entitled to request the Lenders, and the Lenders shall not
be obligated, to make or increase the Revolving Loans during any grace period
that has been extended by operation of the first proviso to Section 9.01(a) of
the Pooling and Servicing Agreement. GRC may make such a request at any time
prior to the earlier of (i) the Liquidation

                                                 Series 2000-1 A-RI Supplemental
                                       7                      Issuance Agreement

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Commencement Date and (ii) the Pay-Out Period Commencement Date. Any Revolving
Loans, if and when made under the Revolving Credit Agreement, shall be deemed to
be funds provided by the Collateral Agent, as the holder of the Series 2000-1
A-RI Certificate, to GRC for funding of the Ratable Principal Amount of the
Series 2000-1 A-RI under this Agreement.

         Without limiting anything provided in the immediately preceding
sentence, each party hereby acknowledges that any increase of the Ratable
Principal Amount shall not exceed the sum, if positive, of (a) the Variable
Amount on the day on which such increase takes effect (as described hereinafter)
and (b) the amount of the Class A-RF Certificate as of the opening of business
on such day.

              (b) If the conditions set forth in the Revolving Credit Agreement
to making the Revolving Loans requested by GRC shall have been satisfied, the
Lenders shall, in accordance with the Revolving Credit Agreement, provide their
respective Revolving Percentages of such requested Revolving Loans to the
Facility Agent for delivery to GRC. The Collateral Agent, as the holder of the
Series 2000-1 A-RI Certificate, shall be deemed to have provided such funds to
GRC in order to fund, or to effect an increase in, the Ratable Principal Amount
of the Series 2000-1 A-RI Certificate pursuant to the terms and subject to the
conditions set forth in this Agreement and the Pooling and Servicing Agreement
upon GRC's receipt of such funds from the Facility Agent (on behalf of the
Lenders). The outstanding Ratable Principal Amount of the Series 2000-1 A-RI
Certificate shall be increased, on the Business Day on which GRC receives
immediately available funds from the Facility Agent on behalf of the Lenders, by
the amount of funds that GRC receives on such day from the Facility Agent.

         SECTION 5.04 Decrease of the Ratable Principal Amount. (a) If on any
day GRC allocates a negative Variable Amount to the Series 2000-1 A-RI
Certificate pursuant to Section 4.03(c) of the Pooling and Servicing Agreement,
the Ratable Principal Amount of the Series 2000-1 A-RI Certificate shall be
automatically decreased by the absolute value of such negative amount. If, as a
result of such decrease, the amount funded under the Series 2000-1 A-RI
Certificate shall exceed the Ratable Principal Amount (as so decreased) of the
Series 2000-1 A-RI Certificate, GRC shall immediately pay or cause to be paid to
the Collateral Agent, as the holder of the Series 2000-1 A-RI Certificate, an
amount equal to such excess pursuant to the Third or Fifth (as applicable)
priorities set forth in Section 4.03(f) of the Pooling and Servicing Agreement.

         (b) At any time when GRC is required to reduce the Ratable Principal
Amount of the Series 2000-1 A-RI Certificate pursuant to Section 2.03(b) of the
Revolving Credit Agreement and to make a corresponding payment to the Facility
Agent (to reimburse the Facility Agent for a mistaken funding), GRC shall effect
a reduction in the Ratable Principal Amount of the Series 2000-1 A-RI
Certificate pursuant to Section 4.03(c) of the Pooling and Servicing Agreement
by causing funds to be paid to the Collateral Agent, as the holder of the Series
2000-1 A-RI Certificate (as provided in Section 2.02), pursuant to clause Third
or Seventh (as applicable) of Section 4.03(f) of the Pooling and Servicing
Agreement in an amount equal to the amount of the reduction calculated

                                                Series 2000-1 A-RI Supplemental
                                       8                     Issuance Agreement

<PAGE>   12

pursuant to Section 2.03(b) of the Revolving Credit Agreement. If there is a
shortfall in the amount of Collections available for such purpose and GRC used
the proceeds of such funding to pay to Gaylord the Purchase Price for new
Receivables or amounts owed on the GRC Note, Gaylord shall immediately pay to
GRC an amount equal to such shortfall.

              (c) At any time when the Series 2000-1 A-RI Stated Amount is
reduced pursuant to Section 5.02(b), GRC shall, contemporaneously therewith,
effect a reduction in the Ratable Principal Amount of the Series 2000-1 A-RI
Certificate pursuant to Section 4.03(c) of the Pooling and Servicing Agreement,
to the extent that such Ratable Principal Amount then exceeds the Series 2000-1
A-RI Stated Amount as so reduced, by causing funds to be paid to the Collateral
Agent, as the holder of the Series 2000-1 A-RI Certificate (as provided in
Section 2.02), pursuant to clause Third or Seventh (as applicable) of Section
4.03(f) of the Pooling and Servicing Agreement until the Ratable Principal
Amount of the Series 2000-1 A-RI Certificate equals the Series 2000-1 A-RI
Stated Amount as so reduced.

              (d) Notwithstanding anything to the contrary in the Pooling and
Servicing Agreement, any reduction that GRC effects in the Ratable Principal
Amount of the Series 2000-1 A-RI Certificate by means of an allocation that GRC
directs the Servicer to make pursuant to Section 4.03(c) of the Pooling and
Servicing Agreement, other than any such reduction that is described above in
Section 5.04(b), shall be in a minimum amount of $1,000,000 and in increments of
$100,000 in excess thereof.

              (e) The amount of interest to be paid to the Collateral Agent, as
the holder of the Series 2000-1 A-RI Certificate (pursuant to Section 2.02),
upon any reduction of all or part of the outstanding Ratable Principal Amount of
the Series 2000-1 A-RI Certificate shall include interest accrued on the amount
of such reduction to the date on which such reduction is to be made.

         SECTION 5.05 Restrictions on Issuance of Certain Additional Series of
Investor Certificates. GRC and the Trustee hereby agree that, at any time when
the Series 2000-1 A-RI Certificate is issued and outstanding, it will be the
only issued and outstanding Class A-RI Certificate.

                                   ARTICLE VI
                                 MISCELLANEOUS

         SECTION 6.01 Govering Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

         SECTION 6.02 Execution in Counterparts. This Agreement may be executed
in any number of counterparts and by the different parties hereto in separate
counterparts, each of which

                                                 Series 2000-1 A-RI Supplemental
                                       9                      Issuance Agreement

<PAGE>   13
when so executed shall be deemed to be an original, and all of which taken
together shall constitute one and the same agreement.

          SECTION 6.03 Effect of Unenforceable Provisions. If any provision
hereof shall be invalid, illegal or unenforceable in any jurisdiction, the
remaining provisions shall continue to be valid and enforceable and such
provision shall continue to be valid and enforceable in any other jurisdiction.

          SECTION 6.04 Reporting Requirements. Notwithstanding any provision in
the Pooling and Servicing Agreement to the contrary, the Trustee shall provide
to the Collateral Agent, as the holder of the Series 2000-1 A-RI Certificate,
copies of all reports, certificates, notices and other documents that the
Trustee receives from the Servicer, GRC or any GCC Person pursuant to the
Pooling and Servicing Agreement and the other Transaction Documents except (a)
documents relating to the designation or termination of any Bank Accounts or
Account Banks pursuant to Section 3.03(c) of the Pooling and Servicing
Agreement, (b) file-stamped copies and receipts delivered to the Trustee
pursuant to Section 3.10(a) of the Pooling and Servicing Agreement, (c) notices
provided to the Trustee pursuant to Section 4.04 of the Pooling and Servicing
Agreement, (d) requests from the Servicer that are delivered to the Trustee
pursuant to Section 6.07 of the Pooling and Servicing Agreement and (e)
documents relating to the names and addresses of Account Banks or the account
numbers of Bank Accounts that are delivered to the Trustee pursuant to
Section 7.01(k) of the Pooling and Servicing Agreement. The Trustee shall
deliver each such report, certificate, notice or document (as applicable) that
is required to be delivered pursuant to the preceding sentence to the Collateral
Agent, as the holder of the Series 2000-1 A-RI Certificate, promptly after the
Trustee receives such report, certificate, notice or document (as applicable)
and without any request being made therefor by the Collateral Agent, in its
capacity as such holder. In addition, the Trustee shall deliver to the
Collateral Agent, as the holder of the Series 2000-1 A-RI Certificate, or S&P
any or all of the items described above in clauses (a) through (e) promptly
after the Collateral Agent or S&P (as applicable) requests any or all such items
(as the case may be) in writing. The Trustee shall also give the Collateral
Agent and S&P prompt notice of the appointment of a Successor Servicer pursuant
to Section 3.01(d) of the Pooling and Servicing Agreement.

          SECTION 6.05 Accuracy of Information Memorandum. GRC and Gaylord
hereby represent and warrant that, as of August 16, 2000 (or if any information
contained therein relates to an earlier date, as of such earlier date), the
Confidential Information Memorandum (excluding Section V thereof and Exhibit IV
thereto) dated July, 2000, as supplemented by the Summary of Terms which relates
to the transactions contemplated by the Revolving Credit Agreement and which has
been provided to the Lenders, does not contain any untrue statement of a
material fact or omit to state material facts necessary to make the statements
therein not misleading, in each case in light of the circumstances under which
such statements were made.

          SECTION 6.06 Liens on Transferred Assets. Gaylord agrees that it shall
not grant a lien to any Person on any of its assets the proceeds of which give
rise to, or constitute, Transferred

                                                 Series 2000-1 A-RI Supplemental
                                       10                     Issuance Agreement

<PAGE>   14

Assets unless either of the following conditions is satisfied: (i) the holder of
such lien shall have released or waived any claim it may have on the Transferred
Assets or (ii) all of the Lenders shall have consented to such lien in writing.

          SECTION 6.07 Third-Party Beneficiaries. Each of the parties hereto
acknowledges and agrees that each of the Lenders is a third party beneficiary of
the representation and warranty made by GRC and Gaylord in Section 6.05 and of
the covenant of Gaylord in Section 6.06. This Agreement will inure to the
benefit of and be binding upon the parties hereto and their respective
successors and permitted assigns. Except as expressly provided otherwise in the
first sentence of this Section 6.07, nothing contained in this Agreement shall
confer any rights upon any Person which is not a party to, or a permitted
assignee of a party to, this Agreement or the Revolving Credit Agreement.

                            [SIGNATURE PAGES FOLLOW]

                                                 Series 2000-1 A-RI Supplemental
                                       11                     Issuance Agreement

<PAGE>   15

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

                                   GAYLORD RECEIVABLES CORPORATION,
                                    as Transferor

                                   By:
                                     ------------------------------------------
                                       Name:
                                       Title:
                                       Address:     1013 Centre Road
                                                    Wilmington, Delaware  19805
                                       Attention:   Catherine A. Curran
                                                    Treasurer
                                       Telephone:   (302) 636-5400
                                       Facsimile:   (302) 636-5454

                                       A copy of each notice shall be sent to:

                                       Gaylord Receivables Corporation
                                       500 Lake Cook Road
                                       Suite 400
                                       Deerfield, Illinois  60015

                                       Attention:   Catherine A. Curran
                                                    Treasurer and Assistant
                                                    Secretary
                                       Telephone:   (847) 405-5614
                                       Facsimile:   (847) 405-5586

                                       Kirkland & Ellis
                                       200 East Randolph Drive
                                       Chicago, Illinois  60601
                                       Attention: Jeffrey S. O'Connor

                                                 Series 2000-1 A-RI Supplemental
                                       S-1                    Issuance Agreement

<PAGE>   16

                                   GAYLORD CONTAINER CORPORATION,
                                   individually and as Servicer

                                   By:
                                     ------------------------------------------
                                     Name:
                                     Title:

                                   Address:     500 Lake Cook Road
                                                Suite 400
                                                Deerfield, Illinois 60015
                                   Attention:   Jeffrey B. Park
                                                Vice President, Finance
                                   Telephone:   (847) 405-5572
                                   Facsimile:   (847) 405-5585

                                                 Series 2000-1 A-RI Supplemental
                                       S-2                    Issuance Agreement

<PAGE>   17

                                   MANUFACTURERS AND TRADERS TRUST
                                   COMPANY, as Trustee

                                   By:
                                      -----------------------------------------
                                       Name:
                                       Title:
                                   Address:     One M&T Plaza
                                                Buffalo, New York 14203

                                   Attention:   Corporate Trust Department
                                   Telephone:   (716) 842-5602
                                   Facsimile:   (716) 842-4474

                                                 Series 2000-1 A-RI Supplemental
                                       S-3                    Issuance Agreement<PAGE>   1
                                                                 EXHIBIT 4.14(b)

                     AMENDED AND RESTATED SECURITY AGREEMENT

         THIS AMENDED AND RESTATED SECURITY AGREEMENT, dated as of August 16,
2000 (this "Agreement"), is made by GAYLORD RECEIVABLES CORPORATION, a Delaware
corporation ("GRC"), in favor of LASALLE BANK NATIONAL ASSOCIATION,
as the collateral agent (together with any successor(s) thereto, the "Collateral
Agent") for each of the holders of Secured Obligations (as defined below).

                              W I T N E S S E T H:
                              - - - - - - - - - -

         WHEREAS, pursuant to an Amended and Restated Revolving Credit
Agreement, dated as of August 16, 2000 (together with all amendments and other
modifications, if any, from time to time thereafter made thereto, the "Credit
Agreement"), among GRC, the various financial institutions (individually a
"Lender" and collectively the "Lenders") as are, or may from time to time
become, parties thereto, Bankers Trust Company, as facility agent (together with
any successor(s) thereto, the "Facility Agent") and the Collateral Agent, the
Lenders have extended a Revolving Commitment to make Revolving Loans to GRC;

         WHEREAS, the Credit Agreement amends and restates the Revolving Credit
Agreement, dated as of September 24, 1993 (the "Existing Credit Agreement"),
among GRC, certain lenders and Harris Trust and Savings Bank ("Harris"), as the
facility agent and the collateral agent thereunder, and certain loans made under
the Existing Credit Agreement remain outstanding under the Credit Agreement;

         WHEREAS, the obligations of GRC under the Existing Credit Agreement and
certain other obligations were secured pursuant to a Security Agreement, dated
as of September 24, 1993 (the "Existing Security Agreement"), between GRC and
Harris, as Collateral Agent;

         WHEREAS, GRC desires to amend and restate the Existing Security
Agreement so as to name a new Collateral Agent, permit the substitution of
certain items of collateral and provide a continuation of liens to secure the
Credit Agreement;

         NOW THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, and in order to induce the Lenders to make
Revolving Loans to GRC pursuant to the Credit Agreement, GRC agrees, for the
benefit of the Collateral Agent and each Lender Party, as follows:

                                         Amended and Restated Security Agreement

                                       1
<PAGE>   2
                                   ARTICLE I.
                                   DEFINITIONS

         SECTION 1.1. Certain Terms. The following terms (whether or not
underscored) when used in this Agreement, including its preamble and recitals,
shall have the following meanings unless a clear contrary intention appears
(such definitions to be equally applicable to the singular and plural forms
thereof):

         "Agreement" is defined in the preamble.

         "Backup Collateral" means all Receivables, all Related Assets, the
Seller Transaction Documents, all funds in the Trust Accounts (as each such term
is defined in the Pooling and Servicing Agreement), and all other assets
described as having been conveyed to the Trust under Section 2.01 of the Pooling
and Servicing Agreement; provided, however, that it is understood and agreed
that it is the intent of all parties that all of such assets be transferred to
the Trustee under the Pooling and Servicing Agreement, and that nothing in this
Agreement should impair any right or remedy the Trustee may have in or with
respect to such assets, and that except for the provisions of Article II (for
the purposes of Article II, such assets shall at all times be Backup Collateral)
such assets shall not be Backup Collateral and the provisions of this Agreement
(other than those of Article II) will not apply to such assets; provided,
further, that if (notwithstanding such intent) the Trust purported to be created
by the Pooling and Servicing Agreement is not respected by a court of competent
jurisdiction and/or GRC and not the Trustee is determined to have retained its
interest in such assets, such assets shall be Backup Collateral for all purposes
of this Agreement and shall be subject to all of the terms and provisions of
this Agreement, including the security interest created by this Agreement.

         "Collateral" is defined in Section 2.1.

         "Collateral Agent" is defined in the preamble.

         "Credit Agreement" is defined in the first recital.

         "Existing Credit Agreement" is defined in the second recital.

         "Existing Security Agreement" is defined in the third recital.

         "Facility Agent" is defined in the first recital.

         "GRC" is defined in the preamble.

         "Lender" or "Lenders" is defined in the first recital.

         "Lender Party" means, as the context may require, any Lender or the
Facility Agent and each of their respective successors, transferees and assigns.

         "Secured Obligations" is defined in Section 2.2.

                                         Amended and Restated Security Agreement

                                        2

<PAGE>   3
         "Series 2000-1 A-RI Certificate" means the trust certificate issued
pursuant to the Series 2000-1 A-RI Supplemental Issuance Agreement.

         "Trustee" means Manufacturers and Traders Trust Company as the trustee
under the Pooling and Servicing Agreement and the Series 2000-1 A-RI
Supplemental Issuance Agreement, and its successor in such capacity.

         "U.C.C." means the Uniform Commercial Code as in effect in the State of
New York.

         SECTION 1.2. Credit Agreement Definitions. Unless otherwise defined
herein or the context otherwise requires, capitalized terms used in this
Agreement, including its preamble and recitals, have the meanings provided in
the Credit Agreement. Without limiting the foregoing, it is understood and
agreed that the term "Transaction Documents" includes this Agreement, the Credit
Agreement and the Revolving Notes.

         SECTION 1.3. U.C.C. Definitions. Unless otherwise defined herein or the
context otherwise requires, terms for which meanings are provided in the U.C.C.
are used in this Agreement, including its preamble and recitals, with such
meanings.

         SECTION 1.4. Amendment and Restatement. This Agreement amends and
restates the Existing Security Agreement. By executing and delivering this
Agreement, GRC does not intend to cancel, release or in any way impair any
security interest or lien granted under the Existing Security Agreement or any
indebtedness secured thereby, except that it is understood and agreed that the
Series 1993-1 A-RI Certificate pledged pursuant to the Existing Security
Agreement will be released in exchange for the grant of a security interest in
the Series 2000-1 A-RI Certificate. All references in any Transaction Documents
or any other instrument or document to the Existing Security Agreement which
shall be deemed to include reference to this Agreement. All other security
interests and liens granted pursuant to the Existing Security Agreement are
hereby ratified and confirmed.

                                   ARTICLE II.
                                SECURITY INTEREST

         SECTION 2.1. Grant of Security Interest. To secure the due and punctual
payment and performance of all Secured Obligations, GRC hereby pledges,
hypothecates, assigns, charges, mortgages, delivers, and transfers to the
Collateral Agent, for its benefit and the ratable benefit of the Lender Parties,
and hereby grants to the Collateral Agent, for its benefit and the ratable
benefit of the Lender Parties, a continuing first priority security interest in,
all of the following property (collectively, the "Collateral"):

                  (a) the Series 2000-1 A-RI Certificate, all Distributions and
all related accounts, general intangibles and other rights with respect to the
Series 2000-1 A-RI Certificate, now existing or hereafter arising or acquired;

                                         Amended and Restated Security Agreement

                                        3

<PAGE>   4
                  (b) all other property hereafter delivered to the Collateral
Agent in exchange or substitution for, or in addition to any of the foregoing,
and all certificates or instruments, if any, representing or evidencing such
other property;

                  (c) all of GRC's right, title and interest (if any) in the
Backup Collateral; and

                  (d) any and all proceeds and products of and from any and all
of the foregoing.

         SECTION 2.2. Security for Obligations. This Agreement secures the
payment in full of all Obligations, whether for principal, interest, costs,
fees, expenses, or otherwise (all such obligations being the "Secured
Obligations").

         SECTION 2.3. Continuing Security Interest. This Agreement shall create
a continuing security interest in the Collateral and shall

                  (a) remain in full force and effect until payment in full of
all Secured Obligations other than contingent Obligations which survive the
termination of the Credit Agreement pursuant to Section 11.03 thereof and the
termination of the Revolving Commitment,

                  (b) be binding upon GRC and its successors, transferees and
assigns, and

                  (c) inure, together with the rights and remedies of the
Collateral Agent hereunder, to the benefit of the Collateral Agent and each
Lender Party and their respective successors and assigns.

Without limiting the foregoing clause (c), any Lender may assign or otherwise
transfer (in whole or in part) any Revolving Note or Revolving Loan held by it
to any other Person or entity, and such other Person or entity shall thereupon
become vested with all the rights and benefits in respect thereof granted to
such Lender under any Transaction Document (including this Agreement) or
otherwise, subject, however, to any contrary provisions in such assignment or
transfer, and to the provisions of Section 11.04 of the Credit Agreement. Upon
the payment in full of all Secured Obligations (other than the Obligations which
survive the termination of the Credit Agreement pursuant to Section 11.03
thereof) and the termination of the Revolving Commitment, the security interest
granted herein shall terminate and all rights to the Collateral shall revert to
GRC. Upon any such termination, the Collateral Agent will, at GRC's sole
expense, deliver to GRC, without any representations, warranties or recourse of
any kind whatsoever (except for a representation that the Collateral Agent has
not transferred the Collateral (by way of sale, assignment, pledge or otherwise)
to a third party), all certificates and instruments representing or evidencing
all Collateral held by the Collateral Agent hereunder, if any, and execute and
deliver to GRC such documents as GRC shall reasonably request to evidence such
termination.

                                         Amended and Restated Security Agreement

                                        4

<PAGE>   5
                                  ARTICLE III.
                         REPRESENTATIONS AND WARRANTIES

         SECTION 3.1. Representations and Warranties. In addition to all the
representations and warranties of GRC in the Pooling and Servicing Agreement
which GRC hereby confirms, GRC represents and warrants to the Collateral Agent
that:

                  (a) No effective financing statement or other instrument
similar in effect covering all or any part of the Collateral is on file in any
public office, except such as may have been filed in favor of the Collateral
Agent relating to this Agreement;

                  (b) GRC is and will be the lawful owner of all Collateral,
free and clear of any Lien, security interest, charge or encumbrance except for
the security interest hereunder, GRC has full power and authority to execute
this Agreement and perform its obligations hereunder, and to subject the
Collateral to the security interest hereunder, and GRC has furnished to the
Collateral Agent an acknowledgment of the Trustee of the security interest
granted pursuant to this Agreement (a copy of which has been delivered to the
Trustee);

                  (c) GRC has furnished to the Collateral Agent a true and
correct copy of the Series 2000-1 A-RI Supplemental Issuance Agreement, which
constitutes the valid, binding and enforceable obligation of all parties
thereto, set forth the entire agreement of the parties thereto with respect to
the subject matter thereof, have not been further amended or modified and remain
in full force and effect;

                  (d) The Receivables Purchase Agreement and the Pooling and
Servicing Agreement constitute the valid, binding and enforceable obligation of
all parties thereto, set forth the entire agreement of the parties thereto with
respect to the subject matter thereof, have not been further amended or modified
and remain in full force and effect;

                  (e) None of the Collateral is represented by a certificate of
interest or similar instrument, except the Series 2000-1 A-RI Certificate which
has been delivered to the Collateral Agent (and GRC hereby covenants and agrees
that any such certificates or instruments hereafter received by GRC with respect
to any of the Collateral will be promptly delivered to the Collateral Agent);

                  (f) The address of the location of the records of GRC
concerning the Collateral and the address of GRC's chief executive office are as
set forth on Schedule I hereto;

                                         Amended and Restated Security Agreement

                                        5

<PAGE>   6
                  (g) This Agreement creates a valid first-priority security
interest in the Collateral, securing the payment of the Secured Obligations,
and, after the Collateral Agent takes possession of the Series 2000-1 A-RI
Certificate, and assuming that such possession is maintained, all filings and
other actions necessary to perfect and protect such security interest shall have
been duly taken; and

                  (h) Except as contemplated in clause (g) of this Section, no
authorization, approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body is required either:

                  (i) for the grant by GRC of the security interest granted
hereby or for the execution, delivery and performance of this Agreement by GRC,
or

                  (ii) for the perfection of or the exercise by the Collateral
Agent of its rights and remedies hereunder.

                                   ARTICLE IV.
                              VOTING; DISTRIBUTIONS

         SECTION 4.1. Voting Rights; Distributions, Etc. GRC agrees:

                  (a) The Collateral Agent shall be entitled to receive all
distributions and other payments made with respect to the Collateral and all
proceeds of the Collateral, all of which shall be transferred to the Collateral
Agent for application against the Secured Obligations in accordance with the
Credit Agreement; and

                  (b) The Collateral Agent shall exercise, at the direction of
the percentage of the Lenders required in each case by Section 9.03 the Credit
Agreement (to the exclusion of GRC) the voting power and all other incidental
rights of ownership with respect to any Collateral and GRC hereby grants the
Collateral Agent an irrevocable proxy to vote with respect to the Collateral;
and GRC shall promptly deliver to the Collateral Agent such additional proxies
and other documents as may be necessary to allow the Collateral Agent to
exercise such voting power.

                                   ARTICLE V.
                       UNDERTAKINGS AND AGREEMENTS OF GRC

         SECTION 5.1.  Perfection Covenants.  GRC will:

                  (a) Upon the request of the Collateral Agent, execute such
financing statements and other documents (and pay the cost of filing or
recording the same) and do such other acts and things, as may be necessary (or
as the Collateral Agent may from time to time reasonably request) to establish
and maintain a valid, perfected first-priority pledge of, and security interest
in, the Collateral (including delivery of any instruments or certificates
evidencing Collateral) (free of all other Liens, claims and rights of third
parties whatsoever) to secure the payment and performance of the Secured
Obligations;

                  (b)  Notify the Trustee of the existence of this Agreement;

                  (c) Keep, at its addresses so indicated on Schedule I hereto,
(i) its chief executive office, and (ii) all its records concerning the
Collateral, which records will be of such character as will

                                         Amended and Restated Security Agreement

                                        6

<PAGE>   7

enable the Collateral Agent or its designees to determine at any time the status
thereof, provided that upon not less than 30 days' prior written notice given by
GRC to the Collateral Agent and S&P, GRC may amend such Schedule I to add or
delete any address so long as it shall take all actions required under Section
5.2 with respect to such change of address; and

                  (d) Not change its name, identity or corporate structure in
any manner which might make any financing or continuation statement filed
hereunder seriously misleading within the meaning of Section 9-402(7) of the
U.C.C. (or any other applicable provision of the U.C.C.) unless 30 days' prior
to such change, it notifies the Collateral Agent and S&P of such change, and
takes all action necessary or reasonably requested by the Collateral Agent to
amend such financing or continuation statement so that it is not seriously
misleading.

         SECTION 5.2. Protect Collateral; Further Assurances, etc. GRC will not
sell, assign, transfer, pledge, or encumber in any other manner the Collateral
(except in favor of the Collateral Agent hereunder). GRC will warrant and defend
the right and title herein granted unto the Collateral Agent in and to the
Collateral (and all right, title, and interest represented by the Collateral)
against the claims and demands of all Persons whomsoever. GRC agrees that at any
time, and from time to time, at its expense, GRC will promptly execute and
deliver all further instruments, and take all further action, that may be
necessary, or that the Collateral Agent may reasonably request, in order to
perfect and protect any security interest granted or purported to be granted
hereby or to enable the Collateral Agent to exercise and enforce its rights and
remedies hereunder with respect to any Collateral.

                                   ARTICLE VI.
                              THE COLLATERAL AGENT

         SECTION 6.1. Collateral Agent Appointed Attorney-in-Fact. GRC hereby
irrevocably appoints the Collateral Agent as its attorney-in-fact, with full
authority in the place and stead of GRC and in the name of GRC or otherwise,
from time to time in the Collateral Agent's discretion, to (after the occurrence
and during the continuance of an Actionable Event) take any action and to
execute any instrument which the Collateral Agent may deem necessary or
advisable to accomplish the purposes of this Agreement, including without
limitation:

                  (a) to ask, demand, collect, sue for, recover, compromise,
receive and give acquittance and receipts for moneys due and to become due under
or in respect of any of the Collateral;

                  (b) to receive, endorse, and collect any drafts or other
instruments, documents and chattel paper, in connection with clause (a) above;
and

                  (c) to file any claims or take any action or institute any
proceedings which the Collateral Agent may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the rights of the
Collateral Agent with respect to any of the Collateral.

                                         Amended and Restated Security Agreement

                                        7

<PAGE>   8
GRC hereby acknowledges, consents and agrees that the power of attorney granted
pursuant to this Section is irrevocable and coupled with an interest.

         SECTION 6.2. Limited Duties of Collateral Agent. The powers conferred
on the Collateral Agent hereunder are solely to protect its interest (on behalf
of the Lender Parties) in the Collateral and shall not impose any duty on it to
exercise any such powers. Except for reasonable care of any Collateral in its
possession and the accounting for moneys actually received by it with respect to
a sale pursuant to Section 7.1, the Collateral Agent shall have no duty as to
any Collateral or responsibility for (a) ascertaining or taking action with
respect to calls, conversions, exchanges, maturities, tenders or other matters
relative to any Collateral, whether or not the Collateral Agent has or is deemed
to have knowledge of such matters, or (b) taking any necessary steps to preserve
rights against prior parties or any other rights pertaining to any Collateral.

                                  ARTICLE VII.
                                    REMEDIES

         SECTION 7.1. Remedies. If: (i) the Secured Obligations have not been
paid in full on the Stated Maturity Date, or (ii) an Actionable Event or a
Liquidation Event has occurred and is continuing:

                  (a) The Collateral Agent may exercise in respect of the
Collateral, in addition to other rights and remedies provided for herein or
otherwise available to it, all the rights and remedies of a secured party on
default under the U.C.C. (whether or not the U.C.C. applies to the affected
Collateral) or other laws, and also may, without notice except as specified
below, sell the Collateral or any part thereof in one or more parcels at public
or private sale, at any of the Collateral Agent's offices or elsewhere, for
cash, on credit or for future delivery, and upon such other terms as the
Collateral Agent may deem commercially reasonable or the Majority Lenders shall
direct. GRC agrees that, to the extent notice of sale shall be required by law,
at least ten days' prior notice to GRC of the time and place of any public sale
or the time after which any private sale is to be made shall constitute
reasonable notification. The Collateral Agent shall not be obligated to make any
sale of Collateral regardless of notice of sale having been given. The
Collateral Agent may adjourn any public or private sale from time to time by
announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned.
Notwithstanding the foregoing, the Collateral Agent may not sell, assign or
otherwise transfer any part of the Collateral unless (1) the net proceeds of
such sale, assignment, or other transfer would be sufficient to repay in full
the Secured Obligations, or (2) all Lenders approve such sale, assignment or
transfer in writing.

                  (b) The Collateral Agent may:

                  (i) transfer all or any part of the Collateral into the name
         of the Collateral Agent or its nominee, with or without disclosing that
         such Collateral is subject to the lien and security interest hereunder,

                                         Amended and Restated Security Agreement

                                        8

<PAGE>   9

                  (ii) enforce collection of any of the Collateral by suit or
         otherwise, and surrender, release or exchange all or any part thereof,
         or compromise or extend or renew for any period (whether or not longer
         than the original period) any obligations of any nature of any party
         with respect thereto,

                  (iii) endorse any checks, drafts, or other writings in GRC's
         name to allow collection of the Collateral,

                  (iv) in addition to the extent it is already authorized to do
         so) take control of any proceeds of the Collateral, and

                  (v) execute (in the name, place and stead of GRC)
         endorsements, assignments and other instruments of conveyance or
         transfer with respect to all or any of the Collateral.

         SECTION 7.2. Certain Restrictions on Backup Collateral. In the event
that the conditions in the definition of Backup Collateral are satisfied so that
the assets purported to be transferred to the Trustee under the Pooling and
Servicing Agreement are included in Collateral for all purposes, no holder of
the Secured Obligations shall be entitled to receive proceeds of the Backup
Collateral in excess of the amount such Person would have received under the
allocation provisions of the Pooling and Servicing Agreement and the Series
2000-1 A-RI Supplemental Issuance Agreement, and the Collateral Agent shall
release such excess to the Person who would have been entitled to such amounts
under the Pooling and Servicing Agreement.

                  (b) If at any time there are more than one Series of Investor
Certificates outstanding, the Collateral Agent shall negotiate in good faith the
terms of an intercreditor agreement with the representative of such other Series
in respect of the exercise of rights and remedies against the Backup Collateral.

         SECTION 7.3. Compliance with Restrictions. GRC agrees that in any sale
of any of the Collateral pursuant to Section 7.1, the Collateral Agent is hereby
authorized to comply with any limitation or restriction in connection with such
sale as it may be advised by counsel is necessary in order to avoid any
violation of applicable law (including compliance with such procedures as may
restrict the number of prospective bidders and purchasers, require that such
prospective bidders and purchasers have certain qualifications, and restrict
such prospective bidders and purchasers to persons who will represent and agree
that they are purchasing for their own account for investment and not with a
view to the distribution or resale of such Collateral), or in order to obtain
any required approval of the sale or of the purchaser by any governmental
regulatory authority or official, and GRC further agrees that such compliance
shall not result in such sale being considered or deemed not to have been made
in a commercially reasonable manner, nor shall the Collateral Agent be liable
nor accountable to GRC for any discount allowed by the reason of the fact that
such Collateral is sold in compliance with any such limitation or restriction.

         SECTION 7.4. Application of Proceeds. All cash proceeds received by the
Collateral Agent in respect of any sale of, collection from, or other
realization upon, all or any part of the

                                         Amended and Restated Security Agreement

                                        9

<PAGE>   10
Collateral shall be transferred to the Facility Agent for application against
the Secured Obligations in accordance with the terms of the Credit Agreement.

         SECTION 7.5. Indemnity and Expenses. Subject to Section 4.04 of the
Credit Agreement, GRC agrees to indemnify and hold harmless the Collateral Agent
as provided in Section 11.03 of the Credit Agreement.

                                 ARTICLE VIII.
                            MISCELLANEOUS PROVISIONS

         SECTION 8.1. Transaction Document. This Agreement is a Transaction
Document executed pursuant to the Credit Agreement and shall (unless otherwise
expressly indicated herein) be construed, administered and applied in accordance
with the terms and provisions thereof.

         SECTION 8.2. Amendments, Etc. No amendment to or waiver of any
provision of this Agreement nor consent to any departure by GRC herefrom shall
in any event be effective unless the same shall be in writing and signed by the
Collateral Agent and the Collateral Agent shall have received either (i) the
prior written consent of all Lenders or (ii) written confirmation from S&P that
such event will not cause the rating then currently assigned on the Series
2000-1 A-RI Certificate to be reduced or withdrawn; and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which it is given.

         SECTION 8.3. Protection of Collateral. The Collateral Agent may from
time to time, at its option, perform any act which GRC agrees hereunder to
perform and which GRC shall fail to perform within a reasonable time after being
requested in writing so to perform (it being understood that no such request
need be given after the occurrence and during the continuance of an Actionable
Event) and the Collateral Agent may from time to time take any other action
which the Collateral Agent reasonably deems necessary for the maintenance,
preservation or protection of any of the Collateral or of its security interest
therein. All reasonable expenses of the Collateral Agent incurred in connection
with performing any act described in the previous sentence shall be payable by
GRC in accordance with Section 7.5.

         SECTION 8.4. Addresses for Notices. All notices and other
communications provided for hereunder shall be in writing or by facsimile and,
if to GRC, mailed or delivered or transmitted to GRC at the address or facsimile
number set forth below its signature hereto, if to the Collateral Agent, mailed
or delivered or transmitted to it, addressed to it at the address or facsimile
number of the Collateral Agent specified in the Credit Agreement or, as to
either party, at such other address as shall be designated by such party in a
written notice to each other party complying as to delivery with the terms of
this Section. All such notices and other communications if mailed and properly
addressed with postage prepaid or if properly addressed and sent by prepaid
courier service, shall be deemed given when received; any notice, if transmitted
by facsimile, shall be deemed given when transmitted, and shall also be
confirmed by delivery of an original of such notice promptly after the giving of
such notice.

                                         Amended and Restated Security Agreement

                                       10

<PAGE>   11
         SECTION 8.5. Captions. Section captions used in this Agreement are for
convenience of reference only, and shall not affect the construction of this
Agreement.

         SECTION 8.6. Severability. Wherever possible each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or
invalid under such law, such provision shall be ineffective as to such
jurisdiction to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.

         SECTION 8.7. Governing Law, Entire Agreement, Etc. THIS AGREEMENT SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE
OF NEW YORK WITHOUT REFERENCE TO CONFLICTS OF LAWS PRINCIPLES EXCEPT TO THE
EXTENT THAT THE VALIDITY OR PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR
REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE
LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK. THIS AGREEMENT AND THE
OTHER TRANSACTION DOCUMENTS CONSTITUTE THE ENTIRE UNDERSTANDING AMONG THE
PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF AND SUPERSEDE ANY PRIOR
AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT THERETO.

         SECTION 8.8. Survival. The indemnification obligations of GRC under
Section 7.5 shall survive for a period of three years after the termination of
the Trust pursuant to Section 12.01 of the Pooling and Servicing Agreement.

                            [SIGNATURE PAGES FOLLOW]

                                         Amended and Restated Security Agreement

                                       11

<PAGE>   12

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

                                       GAYLORD RECEIVABLES CORPORATION

                                       By
                                         ---------------------------------------
                                         Name:
                                         Title:

                                       Address:    Gaylord Receivables
                                                   Corporation
                                                   1013 Centre Road, Suite 350
                                                   Wilmington, DE  19805
                                       Attention:  Catherine A. Curran,
                                                   Treasurer and Assistant
                                                   Secretary
                                       Telephone:  (302) 636-5400
                                       Facsimile:  (302) 636-5454

                                       with a copy to:

                                       Gaylord Receivables Corporation
                                       500 Lake Cook Road
                                       Suite 400
                                       Deerfield, Illinois 60015
                                       Attention:  Catherine A. Curran,
                                                   Treasurer and Assistant
                                                   Secretary
                                       Telephone:  (847) 405-5614
                                       Facsimile:  (847) 405-5586

                                       and with a copy to:

                                       Kirkland & Ellis
                                       200 East Randolph Drive
                                       Chicago, Illinois  60601
                                       Attention:  Jeffrey S. O'Connor
                                       Telephone:  (312) 861-2000
                                       Facsimile:  (312) 861-2200

                                         Amended and Restated Security Agreement

                                       12

<PAGE>   13

                                       LASALLE BANK NATIONAL ASSOCIATION,
                                       as the Collateral Agent

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                       Address:       135 South LaSalle Street
                                                      Suite 208:
                                                      Chicago, IL 60603
                                       Attention:     Donna N.  Smith
                                       Telephone No.: (312) 904-1426
                                       Facsimile No.: (312) 904-0522

                                         Amended and Restated Security Agreement

                                       13

<PAGE>   14

                                   SCHEDULE I

1.     The Location of the Records Concerning the Collateral:

       1013 Centre Road, Suite 350
       Wilmington, Delaware  19805

       500 Lake Cook Road
       Suite 400
       Deerfield, Illinois  60015

2.     Address of GRC's
       Chief Executive Office
       1013 Centre Road, Suite 350
       Wilmington, Delaware  19805

                                         Amended and Restated Security Agreement

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